Full Project – The impact of employee participation in decision making on organization performance

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CHAPTER ONE

1.0 INTRODUCTION

When we talk of decision making, we have to bear certain things in mind. Decision making is the role of labour. Some leaders do not allow their subordinates to make decisions (Authoritarian Leaders), some leaders go to the extent of allowing their subordinates to make all decisions or major decisions (Laissez faire leaders). Yet some other leaders create opportunities or avenues to join in decision making (Democratic leaders). Each of the above Leadership style has complications or effects in organizational performance, therefore for the purpose of this study, the researcher focused on the democratic leadership style which allows subordinates participation over the effects of such participation on productivity using Jacob Tonic Wine Plc Mgbidi Imo State.

1.1 BACKGROUND OF THE STUDY

Advancement on the study of management with emphasis on the humanistic approach has strengthened the urge to discover and to know more about the individual interest in the achievements of organizational goals or objectives concepts like participation when related to performance have attracted attention to researcher management practitioners, physiologies and sociologist who devoted their time, money and resources in trying to discover the relationship between participation in decision making and job performance.

Participation is the mental, physical and emotional involvement of persons in group situation that encourages them to make their own contribution through the achievement of goals and sharing of responsibility.

Davis (2001) defines it as motivational techniques. Koonte (1983) says that the right participation yields both notional and knowledge valuable for enterprise success.

Decision making could be seen as process of selection from among alternatives of activities according to certain set criteria, the dynamic of modern organizations place a heavy burden on its managers to interpret plan and decision making on their central job because they must constantly choose which is to be done.

The primary rise of managers is to get people to contribute to the activities, this will help in achieving the need, and the assistance of employee’s in the form of information, suggestions, views and ideas from both supervisors and subordinates in order to function well. Decisions that affect the employees and organizational goals, where required and how required. It could be seen that there has been many identified relationships between participation and work performance, some of which centers on the believe and their environment. It boosts their moral feeling of recognition and finally motivates them to increase their performance

1.2 STATEMENT OF THE PROBLEM

Since the concept of participation evolved from the field of human relation, it has been misunderstood by many organizations. Participation is therefore the act of one taking part in something that affects him or her responsibility.

Unfortunately, the extent to which participation of workers in decisions making is all owned by most managers has been minimal. The problem is that some managers adopt leadership style that does not permit the participation of their employees in decision making. Consequently, such employees are derived the opportunity to contribute their own idea or provide useful information that can lead to sound decision making. In contemporary economic environment, studies have shown that the organizations which enjoy efficiency higher productivity and organizational or industrial peace are those management and labour that appreciate their existence. Inefficiency and low productivity are experience in organizations where management and labour are always at each others neck. Such organization are always at each other’s neck, such an organization falls to achieve mutual co-operation and peace full co-existence between their labour and management. Everyday, the issues of labour management makes headlines news all over the world.

1.3 PURPOSE/OBJECTIVES OF THE STUDY

The study attempts to achieve the following:

To determine the impact of democratic leadership styles on employee performance.
To determine their impact of democratic leadership styles on employee moral.
To fend out how autocratic leadership styles affects employee performance.
To discover how laissez-faire leadership styles affect employees performance.
To identify the problem of employee participation in decision making.
To educate the employees on some basic facts about the decision making in the organizations about the decision making

1.4 RESEARCH QUESTIONS

This research seeks to know the different level participation and in the process identify different motivational input of different levels of participation. The following research question will be posted to gild the study.

How does democratic leader’s style affect employee performance?
How democratic leadership style affect workers moral?
How does autocratic leadership style affect employee performance?
How does laissez-faire leadership style affects employee performance?

1.5 SIGNIFICANCE OF THE STUDY

The findings of this study will guild the management of Jacob Tonic Wine Plc Mgbidi in formulating appropriate personnel policies.

The applications of the recommendations of this research work will lead to increased employee performance in the company and other companies who adopted the recommendations.

Furthermore, the researchers also will use it as a useful tool in further research.

1.6 SCOPE/DELIMITATION OF THE STUDY

This research works will be restricted only to a participation company, Jacob tonic Wine Plc Mgbidi Imo State.

1.7 LIMITATIONS OF THE STUDY

The research work covers all the sectors in the economy, but due to lack of financial capability to comb all the sectors in the economy and lack of time to generate long-term data. The study was also limited by outdated date information, which cannot be used for analysis.

The researcher in spite of this limitations believed that the findings of the research study can be use for generalization.

1.8 DEFINITION OF TERMS

Delegation: This is the transfer from the supervisor to his subordinates productivity, the rate at which a workers a company produces good and the amount produced, compared with how much time, work and money is needed to produce them.

Performance: This is how well or badly something is done. It can be an action or process of doing a tasks or function.

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Full Project – The impact of employee participation in decision making on organization performance

Full Project – The impact of employee participation in decision making on organization performance

Full Project – The impact of employee participation in decision making on organization performance

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