PARTICIPATIVE DECISION MAKING AND ORGANISATIONAL DEVELOPMENT A STUDY OF ENUGU ELECTRICITY DISTRIBUTION COMPANY AWKA

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Description

ABSTRACT
Employee participation represents the combination of task-related practices, which aim to maximize employees’ sense of involvement in their work, and human resource management practices that aim to maximize employees’ commitment to the wider organization. This research assesses participative decision-making and organizational development a study of Enugu electricity distribution company Awka. The objectives of the study were to examine the degree to which organisational culture positively affects employee participation in work decisions and institute the extent to which organisational climate affect representative participation. Two research questions as well as two research hypotheses were raised. Likert Leadership Theory was employed. A sample of 98 respondents was utilized for the study. Analysis was conducted using descriptive statistics such as frequency, percentage and Person correlation. Findings from the study revealed among others that; organisational culture has a significant positive influence on participation in work decisions since f= 824.002 p <0.05 = 0.00.Organisational climate has a positive influence on employee representative participation since f= 18.054 p <0.05 = 0.00. Based on findings of the study, the researcher recommended that; managements need to increase their interactions with employees in staff meetings and increasing guided discussions of topics related to issues in the organization. Employee suggestion schemes and attitude surveys should be implemented where employees can be interviewed to determine their perceptions of various organizational issues especially those that affect their working life.

TABLE OF CONTENTS
Title Page i
Certification ii
Approval Page iii
Dedication iv
Acknowledgements v
List of Table x
Abstract xi

CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of the problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitations of the Study 5

CHAPTER TWO
Review of Related Literature
2.1 Conceptual Review 6
2.1.1 Concept of participative Decision-Making (PDM) in Organizations 6
2.1.2 Organisational Development 12
2.2 Theoretical review 15
2.3 Empirical Review 17
2.4 Summary of Review of related Literature 22

CHAPTER THREE
Method
3.1 Design of the Study 23
3.2 Area of Study 23
3.3 Population of the Study 23
3.4 Sample Size Determination and Sampling Technique 23
3.5 Sources of Data 26
3.6 Validity of the Research Instrument 27
3.7 Method of Data Collection 27
3.8 Method of Data Analysis 28

CHAPTER FOUR
Data Presentation and Analysis 29
4.1 Bio Data of Respondents 29
4.1.1 Presentation of the bio-data of the respondents 29
4.1.2 Analysis of the demography of the respondents 30
4.2 Test of Research Hypotheses 34
4.3 Discussion of Findings 36
CHAPTER FIVE
Summary of Findings, Conclusion and Recommendations 38
5.1 Summary of Findings 38
5.2 Conclusion 38
5.3 Recommendations 38
CHAPTER ONE
Introduction
1.1 Background of the Study
In today’s rapidly changing environment, organizations are forced to find ways to be more competitive, flexible, and adaptive (David, 2005). Therefore, employees are seen to be the main important asset in today’s organizations than ever before (David, 2005) and their participation in decision-making (PDM) is a crucial issue at the workplace. This phenomenon is getting more attention from researchers, human resource experts and policy makers in the West as well as in African countries including Nigeria. To survive and compete in this globalized world, organizations are required to get maximum benefits from employees’ participation in decision-making.
The topic of participation in decision-making was first discussed in 1940s by Coch and French (1945) cited in Maslina & Suraiya, (2015). At that time, participation in decision-makingwas used to measure individuals and small groups’ performance. In 1970s, researchers began to differentiate the levels of participation in decision-making and had divided it into 3 forms: formality versus informality, directness versus indirectness, and the degree of access or influence (Maslina & Suraiya, 2015).
Employee Participation is generally defined as a process in which influence is shared among individuals who are otherwise hierarchically unequal. Employee participation represents the combination of task-related practices, which aim to maximize employees’ sense of involvement in their work, and human resource management practices that aim to maximize employees’ commitment to the wider organization (Bhatti&Nawab 2011). Participatory management practice balances the involvement of managers and their subordinates in information processing, decision-making and problem solving endeavors. A sense of belonging is enhanced if there is a feeling of ownership among employees in the sense of believing they are genuinely accepted by management. The concept of ownership extends to participating in decisions on new developments and changes in working practices that affect the individuals concerned. They should be involved in making those decisions and feel that their ideas have been listened to and that they have contributed to the outcome. Britain, Japan and USA are good examples of countries where there is employee participation. As per Britain’s company Act 1985,it is a requirement on companies with over 250 employees to show in their Directors’ report what steps they have taken to inform or consult with their employees on issues that affect them (Maslina & Suraiya, 2015). The ‘ringi’ method of decision-making used in Japan involves a great deal of informal consultation and problem solving involving the employees who will be affected by the decision and the senior management (Tayeb, 2005). Americans prefer participative management; superiors are usually approachable and subordinates are more willing to question authority.
Employee participation represents the combination of task-related practices, which aim to maximize employees’ sense of involvement in their work, and human resource management practices that aim to maximize employees’ commitment to the wider organization (Bhatti&Nawab2011).

1.2 Statement of the Problem
With the Nigerian economy in recession, many businesses are closing down due to the prevalent harsh economic conditions. Many organisations are fighting not only to stay afloat but to make profit in the face of the fast dwindling economy which makes it even difficult to pay workers’ salaries. This has called for a change of approach in management from the traditional system to an all-inclusive system for improved productivity.
The rigid system of management in which the decisions are made only by the management is fast changing to a more better means of inclusive participation. However, there is lack of substantial evidence of the effect of the participative decision making on organisational performance.
The focus has moved from managing established traditional HR functions to providing guidance to implementing business strategy. As a result, professionals in Human Resources are increasingly challenged to take a strategic perspective regarding their role in the organization. As Human Resources professionals respond to this challenge, measuring Human Resource’s performance and its contribution to the firm’s performance consistently emerge as a key issue. At the same time, more and more top-level managers are realizing that HR or the people side of the business is critical to the long-term survival of the business.
The issue of whether participative decision-making exists in the Nigerian industrial set-up is very controversial. Some companies in Nigeria practice participative decision making and the government has in the past encouraged participative decision making through legislation. On the contrary, some management writers in Nigeria are of the opinion that it does not exist and where it does it is not real. Their reason is that the necessary prerequisite conditions to encourage participation in Nigeria are not available. Therefore this study intends to examine the effects of employee involvement in decision-making on organisational development using Enugu Electricity Distribution Company Awka.
1.3 Objectives of the Study
The main objective of this study is to assess the influence of employee involvement in decision-making on organisational development using Enugu Electricity Distribution Company Awka. Specifically, the researcher intends to;
1. Examine the degree to which organizational culture positively influences employee participation in work decisions.
2. Ascertain the extent to which organizational climate influence representative participation.
1.4 Research Questions
1. To what degree does organizational culture positively influence employee participation in work decisions?
2. To what extent does organizational climate influence representative participation?
1.5 Research Hypotheses
HA1: Organizational culture positively influence employee participation in work decisions.
HA2: Organisational climate has a positive influence on employee representative participation.

1.6 Significance of the Study
This study is of great significance in that it has both practical and empirical significance.
Practically,the findings of the study will be of benefit to organizations who will find the findings of the study very useful in repositioning their organisation for a better performance. Empirically, this study will help future researchers, in that it will contribute to the wealth of material written in this field of study.
1.7 Scope of the Study
This study was carried out in Enugu Electricity Distribution Company Awka (EEDC) Anambra state. It will cover the participative decision-making and its effects on the activities of the organisation.
1.8 Limitations of the Study
A study of this nature is expected to cover many organisations within Anambra state. However, due to difficulty in sourcing data from the organisations, time and financial constraints, the researcher limited this study to Enugu Electricity Distribution Company Awka (EEDC) Anambra state.

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