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BUSINESS ADMINISTRATION

THE RELATIONSHIP BETWEEN EMPLOYEE INVOLVEMENT IN DECISION-MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR

THE RELATIONSHIP BETWEEN EMPLOYEE INVOLVEMENT IN DECISION-MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR

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ABSTRACT

This study explores the relationship between employee participation in decision making and work performance in Imo State’s industrial sector. 50 manufacturing enterprises were surveyed using questionnaires regarding employee engagement in decision making and performance indicators. Using chi-square, the survey responses were statistically evaluated. The results of the study reveal a statistically significant relationship between employee participation in decision making and firms’ performance, as well as a significant disparity between the performance of firms in which employee participation in decision making is extensive and that of firms in which it is limited. The data also reflect the participation of participating companies in employee participation in decision-making. This study’s consequences include the necessity for industrial companies to demonstrate a high level of commitment to employee participation in decision-making for performance improvement.

1.1 INTRODUCTION

The manufacturing sector in Nigeria has been a key subsector, but little is likely known about the impact of employee participation in decision making on the performance of manufacturing enterprises. The manufacturing sector in Nigeria has been a key subsector, but little is likely known about the impact of employee participation in decision making on the performance of manufacturing enterprises. The heightened focus on manufacturing stems from the belief that the industry is a potential modernization tool, job creator, and source of good spillover effects (Tybout, 2000). In addition, the increase in manufacturing output has been a crucial factor in the successful transformation of the majority of countries that have experienced continuous increases in their per capita income (Soderbom and Teal, 2002). Therefore, emphasis should be placed on manufacturing and the variables that can support its expansion.

A high degree of involvement (intense employee participation in decision making) indicates that all employee types are included in the planning process. In contrast, a low level of involvement (weak employee participation in decision making) is indicative of a rather exclusive planning process (Barringer).

& Bleudorn, 1999) which only involves the highest level of management. A high level of employee participation in decision-making permits frontline personnel to affect the planning process. These are the individuals who are closest to the client and who can facilitate the recognition of new products and services, a crucial aspect of the entrepreneurial process (Li et al., 2006). This indicates that employee participation in the innovation planning process may facilitate opportunity recognition throughout the organization (Kemelgor, 2002; Zivkovic et al., 2009).

1.2 DESCRIPTION OF THE PROBLEM

A corporation that is modern and forward-thinking does not keep its personnel in the dark about crucial decisions that affect them.

It has faith in them and involves them in all levels of decision-making. The model of “command and control” is no longer adequate. A framework that is more open and collaborative will maximize the skills of all employees.

The pick of the manufacturing sector was based on its importance and potential for Nigeria’s economic growth.

1.3 PURPOSE OF THE STUDY

Employees must be involved if they are to comprehend the need for innovation and be dedicated to altering their workplace behavior.

Participation of employees in decision-making fosters a sense of belonging among workers and an environment in which both management and employees willingly contribute to harmonious industrial relations.

In order to increase worker commitment and humanize the workplace with the goal of enhancing work performance and good citizenship, managers must allow for a high level of employee participation.

1.4 Importance of the Research

Participation of workers in decision-making is viewed as a strategy for motivating workers, resulting in a positive work attitude and increased productivity. However, other academics may question the significance and relevance of employee participation in decision making to corporate performance.

1.5 RESEARCH QUESTIONS

There is a considerable association between employee participation in decision making and the performance of businesses.

The absence of employee participation in decision making has a substantial impact on the success of businesses.

There is a considerable difference between the success of companies with strong (deep) employee involvement in decision making and those with little (shallow) employee involvement in decision making.

1.6 RESEARCH HYPOTHESIS

There is no correlation between employee participation in decision making and job performance.

Hi: There is a strong correlation between employee participation in decision making and job success.

Employee participation in the decision-making process has no substantial effect on work performance.

Participation in decision-making has a substantial impact on employee work performance.

1.7 RADIUS OF STUDY

The sample was comprised of manufacturing enterprises from the state of Imo. The focus was on Imo State because it is unquestionably the commercial hub of Nigeria, with the highest concentration of industries.

1.8 LIMITATION OF THE STUDY

The research for this thesis has been hampered by time constraints. Despite the available time, some of the non-contracted personnel lacked up-to-date statistics records that would have been valuable for the data analysis. Inadequate research resources and financial restraints also hindered the condition of proper research work that led to the creation of this dissertation.

DEFINITION OF TERMS

Participation: Participation is viewed as an intrusion on the prerogatives of management.

THE RELATIONSHIP BETWEEN EMPLOYEE INVOLVEMENT IN DECISION-MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR

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