AN APPRAISAL OF THE EFFECT OF EMPLOYEE PARTICIPATION IN DECISION MAKING ON WORK PERFORMANCE IN THE MANUFACTURING INDUSTRY.
Background to the study
The manufacturing sector in Nigeria has been a focal sub-sector; but little is probably known about the influence of its employee involvement in decision making on firms’ performance. The manufacturing sector in Nigeria has been a focal sub-sector; but little is probably known about the influence of its employee involvement in decision making on firms’ performance. The particular attention in manufacturing emanates from the conviction that the sector is a potential instrument of modernization, a creator of jobs, and a generator of positive spill-over effects (Tybout, 2000). Moreover, the growth in manufacturing output has been a key element in the successful transformation of most economies that have seen sustained rises in their per capital income (Soderbom and Teal, 2002). Focus should therefore be on manufacturing and those factors that may foster its growth.
A high degree of involvement (deep employee involvement in decision making) means that all categories of employees are involved in the planning process. Conversely, a low degree of involvement (shallow employee involvement in decision making) indicates a fairly exclusive planning process (Barringer&Bleudorn, 1999) which involves the top management only. A deep employee involvement in decision making allows the influence of the frontline employees in the planning process. These are the people who are closest to the customer and who can facilitate new product and service recognition, a central element in the entrepreneurial process (Li et al., 2006). This means that employee participation in the planning process surrounding the potential innovations may facilitate opportunity recognition throughout the organization (Kemelgor, 2002; Zivkovic et al., 2009).
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