Embed Size (px)
Citation preview
ASSESSMENT ON THE EFFECTIVENESS OF EMPLOYEE INVOLVEMENT
IN DECISION-MAKING FOR EFFECTIVE PERFORMANCE IN PRIVATE
ORGANIZATIONS IN TANZANIA
THE CASE OF SERENGETI BREWERIES LTD (SBL)-MOSHI
i
ASSESSMENT ON THE EFFECTIVENESS OF EMPLOYEE INVOLVEMENT
IN DECISION-MAKING FOR EFFECTIVE PERFORMANCE IN PRIVATE
ORGANIZATIONS IN TANZANIA
THE CASE OF SERENGETI BREWERIES LTD (SBL)-MOSHI
By
Assenga Joachim P.
A Research report Submitted to School of Public Administration and Management
(SOPAM) in Partial Fulfilment of the Requirements for the award of Bachelor
Degree of Public Administration (BPA) of Mzumbe University
2014
ii
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance by
the Mzumbe University, a study entitled “Assessment of effectiveness of employee
involvement in decision making toward effective performance in private
organization”, a case of Serengeti Breweries Limited (SBL); in partial fulfillment of
the requirements for an award of Bachelor Degree of Public Administration of Mzumbe
University.
________________________
Major Supervisor
_______________________
Internal Examiner
Accepted For the Board of Public Administration and Management
________________________________
Chair Person, School Board.
iii
DECLARATION AND COPYRIGHT
I, Assenga Joachim P, hereby declare that this research is my own work and that to the
best of my knowledge, it contains no material previously published by another person,
nor material which has been accepted for the award of any other degree of the
University, except where due acknowledgement has been made in the text.
Signature ……………………………….
Date ………………………………...
©
This research report is copyright material protected under the Berne Convention, the
Copyright and Neighbouring Rights Act of 1999 and other international and national
enactments, in that behalf, on intellectual property. No part of this research may be
reproduced, stored in retrieval system or transmitted in any other form or by any means
without the prior written permission of the author and or without the written permission
of Mzumbe University, on behalf of the author.
iv
ACKNOWLEDGEMENT
I am immensely grateful to the Omnipotent Father for sustaining me in my quest for higher education; it is through his grace that I was able to conduct this research healthily and successfully. Glory be to God.
The preparation and submission of this report would not have been possible without the support of the certain persons who deserves my gratitude. May I use this opportunity to express my sincere gratitude to all those who effectively shows love, care, and support throughout the time of this research in one way or another.
I sincerely thank the management of Serengeti Breweries Limited (SBL), Human resources Advisory, his Excellency Mr. James Njaala, plant manager Gideon Kabuthi, head of departments, and general to the all employee and casuals of SBL for their support, care love and willingness to work with me and provide assistance on accomplishing this research.
I also wish to offer my profound appreciation to Mr. Simon Kitila, my supervisor who is a lecturer at the Mzumbe University for his valuable suggestions and constructive criticisms of the content, structure and preparation of this report, also to the School of Public Administration and Management (SOPAM) of Mzumbe University, the dean of school and other administrative officials of Mzumbe University, for the support both materially and morally on the accomplishment of my study.
Since by myself I could not afford the completion of my study, I recognize also the support from Higher Education Student Loans Board (HESLB) for financing my education.
I must acknowledge the marvelous support and encouragement that was demonstrated in various ways by my family and my colleagues in general, more particularly, my dear Mama Mrs. Mary Kimango Assenga, My sponsor Madam Francisca Mmasy and Mr. Joseph Kidumbuyo. My dear sisters Mary Andrea Kimaro and Mkunde Peter, my niece Faraja, Mery, Jane, and Tumaa, my nephew Jonas, Jackson and Johnson. I can’t ignore the courageous support from my beloved sister Miss Dativa Michael Shillya. I also honor the support of my friends and fellow scholar Mr. MbagaBakari B,Paul Mushi, Bitijuma Issa, Marilyn Sanbrailo, Gilman,and Mary Mushi., I say thanks all for your support and may almighty God the giver bless you all. Since it is not possible to mention all who supported me in this small piece of paper, I raise my heart fully thanks to you all, may God bless you all abundantly.
v
DEDICATION
This work is dedicated to my beloved mother Mary Kimango Assengafor raising me up
to date, prayers and her constructive advice on the important of education in my life.
‘Love you Mama’ God bless you abundantly.
Also to the late Mr. Peter Mishori Assenga, My father for his support as then, physically
we’re not together but spiritually we are ‘may his soul rest in peace’
vi
ABSTRACT
This study was about the assessment of the effectiveness of employee involvement in decision making toward effective performance in private sectors organization in Tanzania, conducted at Serengeti Breweries Limited (SBL) Moshi plant Kilimanjaro.The study units involved employee from different departments, casuals and the management of Serengeti Breweries Limited, researcher decided to use Serengeti Breweries Limited as the case because it was big enough to give the researcher enough information regarding the study.
In this study, researcher used non-probability sampling method whereby judgmental sampling technique and accidental sampling technique. Researcher used judgmental sampling technique so as to meet the purpose/objectives of the study while accidental or convenience technique was used because of their availability or easy access, researcher drawing sample on relationship on networks to which they have easy access, researcher used this method because of its availability and quickness with which data gathered.
Data collection methods used by researcher in this study involved interview, whereby structured and unstructured interviews were used to the employee who were not administered questionnaires, questionnaires method was deployed whereby both open and closed questions were asked to respondents regarding the study, self-observation was used as primary methods of data collection while in secondary sources different documented materials such as books and journals was used.
The data collected was analyzed in both qualitatively and quantitatively, the collected data were processed and analyzed by use of statistical package called Microsoft excels 2007 to give more interpretations of the data collected.
The research findings suggested that employee involvement in decision-making contributes to effective performance and also creates an enabling environment for creativity and growth as employees see themselves as stakeholders and part of the decision making process hence implementation of the decision. It was also revealed that when employees see themselves as not being part of the decision-making process, they become discontented and bored which is likely to adversely affect organizational performance.
Researcher finally concluded that employee involvement in decision making is the way of the future, its practice require range of resources and organizations to assist both the public and private sector in adopting it.
vii
ABBREVIATIONS
AK Alex Kulembwe
BPA Bachelor of Public Administration
CMA Commission of Mediation and Arbitration
EI Employee Involvement
EABL East Africa Breweries Limited
ELRA Employment and Labour Relation Act
ET.AL... And others
Govt Government
HESLB Higher Education Student Loans Board
HOD Head of Department
HRA Human Resource Advisor
LTD Limited.
LIA Labour Institution Act
MU Mzumbe university
NO. Number
PDM Participative Decision Making
P4G Performance for Growth
QUAL. Qualification
SBL Serengeti Breweries Limited
SOPAM School of Public Administration and Management
TQM Total Quality Management
viii
TABLE OF CONTENTS
CERTIFICATION..............................................................................................................ii
DECLARATION AND COPYRIGHT.............................................................................iv
ACKNOWLEDGEMENT..................................................................................................v
DEDICATION..................................................................................................................vi
ABSTRACT.....................................................................................................................vii
ABBREVIATIONS........................................................................................................viii
LIST OF TABLES..........................................................................................................xiii
LIST OF FIGURES.........................................................................................................xiv
CHAPTER ONE...............................................................................................................1
BACKGROUND INFORMATION................................................................................1
1.0Introduction...................................................................................................................1
1.1Organizational background...........................................................................................1
1.2Background of the problem...........................................................................................2
1.3 Statement of the problem.............................................................................................4
1.4 Research objectives......................................................................................................5
1.4.1 General objective.......................................................................................................5
1.4.2 Specific objectives....................................................................................................5
1.5 Research questions.......................................................................................................6
1.6 Significance of the study..............................................................................................6
1.7 Delimitation band limitations of the study...................................................................7
1.7.1 Delimitation of the study...........................................................................................7
1.7.2 Limitations of study...................................................................................................7
CHAPTER TWO..............................................................................................................8
LITERATURE REVIEW................................................................................................8
2.0 Introduction..................................................................................................................8
2.1 Theoretical literature review........................................................................................8
2.1.1 Concept definitions of key terms...............................................................................8
2.1.2 Employee...................................................................................................................8
ix
2.1.3 Employee involvement..............................................................................................9
2.2 Reasons for Employee Participation..........................................................................10
2.2.1 Promotion of Satisfaction and Personal Development of the Workers...................10
2.2.2 Means of Increasing Efficiency...............................................................................10
2.2.3 Means of Improving Industrial Relations................................................................11
2.2.4 Extension of Democracy.........................................................................................12
2.3 Benefits of Employee involvement in decision -making...........................................12
2.4 Types of employee involvement................................................................................13
2.4.1 Direct involvement..................................................................................................14
2.4.2 Indirect involvement................................................................................................14
2.4.3 Workers' Representation about Company Boards...................................................15
2.4.4 Shop-floor Participation..........................................................................................16
2.4.5 Works Councils.......................................................................................................16
2.4.6 Collective Bargaining..............................................................................................16
2.7 The Degree of Employee involvement.......................................................................17
2.5.1 Face-to-face PDM...................................................................................................17
2.5.2 Collective PDM.......................................................................................................18
2.5.3 Paternalistic PDM....................................................................................................18
2.5.4 Pseudo-PDM...........................................................................................................18
2.6 Decision-Making........................................................................................................19
2.6.1 Models and steps in decision making process.........................................................19
2.6.2 Steps of the Decision-making Process....................................................................20
2.7 Empirical studies........................................................................................................25
2.8 Conceptual framework...............................................................................................27
2.9 Research gap...............................................................................................................31
CHAPTER THREE.......................................................................................................32
RESEARCH METHODOLOGY..................................................................................32
3.0 Introduction................................................................................................................32
x
3.1 Area of the study........................................................................................................32
3.2 Research Design.........................................................................................................32
3.3 Target Population.......................................................................................................33
3.4 Sample size.................................................................................................................33
3.5 Sampling Techniques.................................................................................................34
3.5.1 Judgmental sampling technique,.............................................................................35
3.5.2Accidental sampling,................................................................................................35
3.6. Data collection methods............................................................................................35
3.6.1 Primary Methods.....................................................................................................35
3.6.2 Secondary Methods:-...............................................................................................36
3.6.2.1Documentary Sources............................................................................................36
3.7 Data Analysis and Processing-...................................................................................37
3.7.1Quantitatively Analysis............................................................................................37
3.7.2Qualitative Analysis.................................................................................................38
CHAPTER FOUR..........................................................................................................39
PRESENTATION OF STUDY FINDINGS, ANALYSIS AND DISCUSSION.......39
4.0 Introduction................................................................................................................39
4.1 Findings analysis........................................................................................................39
4.1.1 Simple descriptive analysis.....................................................................................39
4.1.2 Population and sample size.....................................................................................40
4.2 Respondents according to demographic characteristics.............................................40
4.2.1 Respondents according to level of education..........................................................41
4.2.2 Sex of the respondents.............................................................................................41
4.2.3 Age of respondents..................................................................................................43
4.3 The practice of employee involvement at SBL..........................................................43
4.3.1 Employee involvement............................................................................................46
4.3.2 Effectiveness of employee involvement................................................................47
4.4 Effectiveness of employee involvement in decision making at SBL.........................49
4:5 Employee involvements toward effective performance.............................................51
xi
4.6 Challenges of employee involvement practice at SBL..............................................52
CHAPTER FIVE............................................................................................................55
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS.......55
5.0 Introduction................................................................................................................55
5.1 Summary of findings..................................................................................................55
5.2 Conclusion..................................................................................................................58
5.3 Recommendations......................................................................................................59
5.4 Areas for further study...............................................................................................61
REFERENCES...............................................................................................................62
APPENDICES................................................................................................................63
xii
LIST OF TABLES
Table: 3:1: Target Population and sample size
Table 4.1 General response from questionnaires
Table 4.2 Population and sample size
Table 4.3 Respondent’s education level
Table 4.4 frequency and percentage for sex respondents
Table 4.5: Age Respondents
Table 4.6: Response of respondents to question, the practice
Table 4.7: Reasons for the Non-Participation of Employees in Decision-making
Table 4.8 Response on effectiveness of employee involvement in decision making
Table 4.9 Response on employee involvements toward effective performance
xiii
LIST OF FIGURES
Figure 2.1: Decision making process
Figure 2.2 Conceptual frame work
Figure 4.1 Sex ratio of employee at SBL toward involvement in decision making.
Figure 4.2 practice of employee involvement
Figure 4.3 Reasons for non-involvement in decision making.
Figure 4.4 Effectiveness of employee involvement at SBL
Figure 4.5 Employee involvements toward effective performance
xiv
CHAPTER ONE
BACKGROUND INFORMATION
1.0 Introduction
This chapter consists of organizational background, Background of the problem,
statement of the problem, objectives of the research and research questions, significance
of the study, scope and limitations of the study.
1.1 Organizational background
Serengeti Breweries Ltd (SBL) operates exclusively in Tanzania and is the 2nd largest
beer company with a market share of 25%. SBL is a subsidiary of East Africa Breweries
Ltd (EABL) - which is in turn partly owned by one of the world’s biggest alcoholic
beverage companies, Diageo. The company is an integrated demand/supply business
with 3 operational breweries in Dar es Salaam, Mwanza, and a third one in Moshi,
which is situated in the northern part of the country near the Kenyan border. SBL’s
flagship brand is Premium Serengeti lager, which accounts for 50% of SBL sales
volumes. The other beer brands are Tusker, Guinness, Tusker Malt, Alvaro, Senator,
Tusker Lite, Kick and Pilsner. Diageo boasts some of the world's biggest spirits brands
which are sold in the country such as Johnnie Walker Whisky, Smirnoff Vodka, Gilbeys
Gin, Richot Brandy, Bond 7 Whiskey and Bailey’s Irish Cream to mention a few. Out of
brewing activities performed by Serengeti Breweries Limited, there are other supporting
in social-economic activities which performed by the company for the community
development, the evidence of this is the construction and implementation of water
project at Mawenzi Regional Hospital and donation to buildings for secondary schools
near the plant and within the Region.
Mission –‘The Company’s mission passionate about customer and consumer –
company’s curiosity and customer insights drive the company’s growth.
Vision–The Company’s vision is to be the most celebrated business in every market in
Eastern Africa
Motto – “Tupo Pamoja Katika Shangwe za Mafanikio’’
1
1.2 Background of the problem
The concept of employee involvement represents a popular theme in the analysis of the
world of work among scholars in the fields of industrial relations, industrial sociology as
well as management. It refers to any arrangement which is designed to involve low cadre
employees (workers) in the important decision making within the workplace. Employee
participation in decision making (PDM) is one of the many current forms of employee
involvement in the workplace decision making. Managers are encouraged to allow a
high degree of employee participation and autonomy, which are intended to increase
workforce commitment and to humanize the workplace with the intention of improving
work performance and good citizenship behavior (Cohen, Chang & Ledford, 1997).
Furthermore, it is the employees who make thing happen, they put their shoulder to the
wheel to get the organization’s machinery moving, without their contribution everything
comes to a standstill and the goal of organization cannot be efficiently and effectively
achieved. They should therefore be given the recognition as the most important asset in
the organization (Cotton 1993).
The diverse effect of non-involvement and indifference of employee to decision taken
both in the interest of employee, the organization and its effect on productivity and
performance, management of an organization are now beginning to involve employee in
decision making. Usually to another group of managers, it could be a manipulative
technique to get employee to do what was decided by deluding them into thinking they
have a say in the decision process while in actual fact they are only being told what was
already been decided (Albrook 1967).
In Tanzania legal relationship between the employer and employee in the area of
negotiation of services condition, the setting of targets and taking of critical decision
which affect the working environment of them has been established through the
Employment and Labor Relation Act (ELRA) on what is called collective bargaining
(section 66 pat IV of ELRA 2004)
2
McGregor (1957) and Hertzberg (1966), have strengthened the evidence that a wide
variety of benefits may increase to an organization that systematically develops a
consciously encourage the participation style of management that is involving employee
in decision making. Through participation method productivity and efficiency would be
improved and some stress associated with working in some organization would be
removed as well as solved.
It was during the time of the First World War (1918) that the concept found its first
practical application. Faced by the twin problems of maintaining industrial peace and
improving productivity, the Governments in many belligerent countries persuaded
management's to establish joint committees for expeditiously resolving these problems
through consultation. In the United Kingdom following the recommendations of the
Whitley committee a well-knit three-tier consultative system came into being. It
consisted of works committees at the plant level, district councils at the district level and
the joint industrial councils at the industry level. However, with the cessation of
hostilities in 1918 and the onset of economic depression in 1921 the idea of joint
consultation received a setback. The interest of the working class now shifted toward
nationalization and centralized planning because these were considered to be the most
appropriate remedies for economic stagnation and unemployment.(Rathnakar 2012).
In today’s turbulent environment and intense competition, firms are forced to seek ways
to bemore flexible, adaptive and competitive as they are faced with competitive
pressures and rapidly changing markets (David, 2005). Above all, firms are discovering
that people really are the most important asset. Success depends on involving the
workforce’s entire capacity to generate new ideas and ways of working to outsmart the
competitors. Employees must be involved if they are to understand the need for
creativity and employees must be involved if they are to be committed to changing their
behaviors in work, in new and improved ways. Employee involvement is one important
aspect of organizational life to achieved increased organizational effectiveness and
positive employee perceptions.
3
Employee participation in decision making (PDM) is one of the many current forms of
employee involvement in the workplace decision making. Managers are encouraged to
allow a high degree of employee participation and autonomy, which are intended to
increase workforce commitment and to humanize the workplace with the intention of
improving work performance and good citizenship behavior (Cohen, Chang& Ledford,
1997).
However, employee involvement was revolutionized when McGregor (1957) and
Hertzberg (1966) first started writing about the topic in their articles “The Human Side
of Enterprise” and “Work and the Nature of Man”.
1.3 Statement of the problem
Traditionally in most organizations both private and public organization employee input
were not considered in organizational decision making while such decision had an
impact to such employee since there were the one who made production and operational
activities happen, this made employee to engage different riots and worker’s movement
to demand for their right. In today’s unstable environment and intense competition,
firms are forced to seek ways to be more flexible, adaptive and competitive as they are
faced with competitive pressures and rapidly changing markets Above all, firms are
discovering that people really are the most important asset. Success depends on
involving the workforce’s entire capacity to generate new ideas and ways of working to
outsmart the competitors. Employees must be involved if they are to understand the need
for creativity and employees must be involved if they are to be committed to changing
their behaviors in work, in new and improved ways. Employee involvement is one
important aspect of organizational life to achieved increased organizational effectiveness
and positive employee perceptions.(David, 2005).
An employee is a social creature who brings his persona, hopes, aspirations, anxieties,
feeling and attitude to the work place. He seeks satisfaction and meaning in his work as
he does in other spheres of life. When he finds that his work does not provide him with
4
the opportunity to realize his potentials he tends to engage in negative behaviors like
absenteeism, apathy, low commitment and low productivity. The implication of these
negative tendencies resulting from strict management control has therefore raised
serious concern among scholars interested in healthy industrial relations. The negation
of organizations to recognize the human factor in industrial production through greater
involvement of employees in its management decision making would tend to create
several human problems within the organization. (Noah).
Kearney and Hays (1994) stated that what is needed is a "boundary spanning" capacity
that solicit all workers especially those on the front line who work with clients on the
basis of being management' representatives. That is, the workers who are closest to the
problems have the understanding and knowledge necessary to make all but the most
important decisions.
However, as organization s (private and public) are grappling with the problem of
involvement of employee in effective decision-making toward effective performance,
this study could map out the current situation of employee involvement as well as to
assess on its effectiveness, again the topic under consideration would seek to research on
how the effectiveness of employee involvement in decision brings about an increase in
effective performance within the organization.
1.4 Research objectives
1.4.1 General objective
Generally this study intends to assess the effectiveness of employee involvement in
decision-making for effective performance in private organizations in Tanzania, using
SBL as the case.
1.4.2 Specific objectives
Specifically, the research sought to:
i. To identify practice involved in involving employee in decision making.
5
ii. To assess the relationship between employee involvement and effective
performance
iii. To identify the challenges faced in making employee involvement
1.5 Research questions
i. Does SBL practice employee involvement?
ii. Does employee involvement in decision making relate to effective
performance?
iii. What are the challenges faced in making employee involvement?
1.6 Significance of the study
Generally, the significance of this study lies in the fact that it could bring to light the
current situation of employee participation in decision-making. Therefore, it will clarify
obstacles to the participative process in private sector. By analyzing these problems, it
may be possible to determine where they originate and how could they be solved to
promote employee participation in decision-making in Tanzania for both private and
public companies in general. Again this study will be of vital important to the following,
i. Since some study have been conducted by different scholars and sometimes
organizations from different corners of the world, among all some gives
contradictory meaning of employee involvement and some fails to show
systematically the meaning ,significance, and challenges of employee
involvement . This study provides a clear understanding to scholars and
organizations being public or private on the concept of employee involvement
and key determinants of effective involvement, it is also important to those
who will later undertake the same study or companies that will be interested in
adopting employee involvement in decision making.
ii. The rationale for the study was anchored on the need to raise the productivity
level of workers through appropriate motivational techniques at SBL. The
6
involvement of workers in management decision making is considered as a
means for inducing motivation in the workers leading to positive work attitude
and high productivity. The study is also considered desirable in view of the
benefits of worker participation to organization and the society at large.
Worker participation has been seen as competent of providing workers
conducive work environment, opportunity to exercise their innate potentials
and willingness to pursue corporate goal of the organization.
1.7 Delimitation band limitations of the study
1.7.1Delimitation of the study
This research covered only one private organization, the SBLMoshi plant as the case
was used as researcher’s sources of information. Moreover, the study was only focused
on effectiveness of employee involvement in decision making for effective performance.
1.7.2Limitations of study
This study was conducted at Serengeti Breweries Limited (SBL) Moshi, Using the data
for generalization to all private companies in Tanzania was a limitation because there are
possibilities of variations according to missions and visions of organizations. However,
researcher used qualitative approach in gathering data so as to overcome these setbacks.
Again this study needed the consistence time of even three to four years to study deeply
and understand company’s operations in order to come up with better advice on what to
be done to enhance the effectiveness of employee involvement at SBL instead of the
time of four months used in this study.
7
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter consists of both theoretical and empirical literature review; also there are
various from various sources related to participation topic, definitions of different terms
which were used in the study and theoretical definitions.
2.1 Theoretical literature review
2.1.1Concept definitions of key terms
In common, the concept of employee input is used loosely and is often misunderstood.
Collective bargaining, suggestion schemes and other related words are all terms that
have been incorporated under the general heading of employee participation. For this
reason, before starting the discussion, it is important to point out that the literature on
employee involvement draws a distinction between financial input in the profits or
ownership of enterprises and employee participation in decision-making. The focus of
this study will be on the latter.
2.1.2 Employee
According to ELRA no 6 (2004) Employee means ''employee'' means an individual who
has entered into a contract of employment; or has entered into any other contract under
which the individual undertakes to work personally for the other party to the contract;
and the other party is not a client or customer of any profession, business, or undertaking
carried on by the individual; or is deemed to be an employee by the Minister under
section 98(3).
8
2.1.3 Employee involvement
Worker involvement/participation implies arrangements designed to involve workers in
the enterprises decision making process. This allows for workers’ involvement in the
initiation, formulation and implementation of decisions within the enterprise. The
concept can also be understood in terms of a new approach to industry and society in
which people want to be interested with the taking of decisions which have direct
bearing on them.
MacGregor (1960) contends that worker participation consists basically in creating
opportunity under suitable conditions for people to influence decisions which affect
them. It is a special case of delegation in which the subordinate gain greater control,
greater freedom of choice with respect to bridging the communication gap between the
management and the workers. This serves to create a sense of belonging among the
workers as well as a conducive environment in which both the workers would
voluntarily contribute to healthy industrial relations.
According to Kearney(1997), Employee involvement (EI) has been conceptualized as
the process of developing ‘a feeling of psychological ownership among organizational
members’ and has been implemented via the participation of employees in information
processing, decision-making and/or problem solving.
Despite the complexity of this term, many authors have attempted to define employee
participation. Salaman quoted in Anstey (1997:1) defines worker participation as a
process recognizing the needs and rights of employees individually and collectively to
participate with management in organizational decision-making areas beyond those
usually associated with collective bargaining. Hem (1980), proposes that participation is
a process by which employees can influence management decision-making at various
hierarchical levels in an enterprise. However, in this research the proposals of Salaman
(1987) and Hem (1980) will be used.
9
When we evoke employee participation in the decision-making process, we mean the
way by which an employee contributes to the conception of an idea and sometimes how
he struggles himself for its achievement. Walker and de Bellecombe cited in Guest and
Fatchett (1974: 9) argue that the basic idea is that the people who are managed should
have some say about the decisions that affect them.
2.2Reasons for Employee Participation
Clarke et al. (1972), gives out arguments in order to clarify the reasons for employees to
be involved in decision-making, the following arguments are considered as to why there
should be a greater participation.
2.2.1Promotion of Satisfaction and Personal Development of the Workers
The argument about happiness and personal development rests on the belief that most
work can and should be satisfying to the worker, both in terms of task itself and the
physical and social environment in which it is performed. Wherever possible, work
should afford the worker a means of developing his personality and participation can
assist in achieving these goals (Clarke et al., 1972). From this perspective, it was stated
that productive work is the main source of personal development and satisfaction and
that the organization must give the maximum possible opportunity to the individual for
significant participation and self-expression.
2.2.2 Means of Increasing Efficiency
Participation in decisions is also associated with higher efficiency. The more they are
informed and involved, the more ready they will be to accept technological change, even
unpalatable change. By helping management to be better informed of workers' views,
participation improves the quality of the decisions made. The involvement of workers
spurs managers on to greater efficiency, and the satisfaction of workers' needs and moral
rights makes for a contented and efficiency by its contribution to industrial peace.
10
Viteles quoted in Clarke et al., (1972:15) has indicated that employee participation in
decision-making in a democratic atmosphere created by "permissive" leadership
facilitates the development of "internal" motivation and serves to raise the levels of
employee production and morale.
2.2.3Means of Improving Industrial Relations
A permanent improvement in the relations between employers and employees must be
founded upon something other than a cash basis. What is wanted is that workpeople
should have a greater opportunity of participation in the discussion about and adjustment
of those parts of industry by which they are most affected. (Clarke et al. (1972: 13).
Workers have become alienated from the purposes and organization of industry because
they are denied the opportunity to participate in the control of their immediate work
processes. Without this degree of participation in the decisions which are of immediate
importance to them, workers are unable to develop a sense of loyalty and attachment to
the organization, its function and purposes. Thus, when employees feel a sense of
alienation they often respond to their situation by adopting an aggressive and hostile
attitude to the exercise of managerial authority (Clarke et al, 1972).
Allen, cited in Clarke et al. (1972) argue that there is evidence to suggest that the more a
employee is enabled to exercise control over his task, and to relate his efforts to those of
his fellows, the more likely he is to adopt a co-operative attitude and positive
commitment to achieving the goals of the enterprise without conflict and the break-down
of the normative pattern of relations between management and employees. It has been
noted that that, employers in general, see participation as a means of overcoming basic
employer/employee conflict and as a step towards co-operation and coalition between
managers and employees. Furthermore, there is a perceived economic advantage, in that
co-operation is seen as bringing about greater commitment and involvement on the part
of employees and thereby, greater motivation and higher productivity (Bendix
1989:122).
11
2.2.4Extension of Democracy
The argument for greater industrial democracy is based on the presumption that while
the employee as a citizen enjoys a voice in the government of the society in which he
lives through the electoral system he has no such opportunity at his place of work. There
he is an "employee", party to a contractual relationship rather than a citizen of an
industrial community. Bottomore cited in Clarke et al. (1972:12) indicates that it has
been argued that when the great majority of individuals are denied the opportunity to
play an effective role in reaching the decisions which vitally affect their lives, they are
not only being deprived of a right they ought to enjoy, but political democracy is itself
being diminished.
2.3Benefits of Employee involvement in decision -making
Some scholars and many managers held an assumption that if employees are adequately
informed about matters concerning them and are afforded the opportunity to make
decisions relevant to their work, then there will be benefits for both the organization and
the individual.
(Shadur et al. 1999). Hence, the following are the benefits of employee involvement in
decision making:
1. It increases employee’s morale or job satisfaction and enhances productive efficiency,
this happens as employee are valued as part of organization who can enforce different
maters (Chang and Lorenzi, 1983).
2. It provides employees the opportunity to use their private information, which can lead
to better decisions for the organization, when employee are involved in decision making
and they are given chance to contribute to in decision which performed by organization
management (Williamson, 2008).
3. As a result of the incorporation of the ideas and information from employees,
organizational flexibility, product quality, and productivity may improve, productivity
can get increase due to the awareness of employee after get involved on what they
12
supposed to make and again this become possible due to the acceptance of such decision
(Preuss and Lautsch, 2002).
4. It contributes to greater trust and a sense of control on the part of the employees, by
involving employee in decision making the feel themselves trusted by management of
organization (Chang and Lorenzi, 1983).
5. Through employee involvement, resources required to monitor employee compliance
(e.g. supervision and work rules) can be minimized, hence reducing costs (Arthur, 1994;
Spreitzer and Mishra, 1999).
6. When employees are given the opportunities of contributing their ideas and
suggestions in decision making, increased firms’ performance may result since deep
employee involvement in decision making maximizes viewpoints and a diversity of
perspectives (Kemelgor, 2002).
2.4Types of employee involvement.
Employee participation can be classified into two types which are direct and indirect
involvement (Charlton, 1983). Within the two category involvement of employee can
take different forms which include job participation, consisting of permanent programs
in which employees take a formal, direct role in decisions relating to job issues;
consultative participation, including long term interventions like quality circles and
employee suggestion schemes, in which employees’ opinions are sought as managers
engage in decision-making. It could also use representative participation, in which
employees elect councils or board members to represent their interests to management or
downward communication, through newsletters and team briefings and various forms of
financial participation via gain-sharing, profit-sharing and employee-ownership
schemes. (Lawler, 1996)
The two types of employee involvement, direct and indirect involvement of employee in
decision making can be distinguished based on; the degree of employee involvement,
the organizational level at which participation occurs, the ideological or value base for
13
participation , the types of decision-making concerned and the principal outcomes or
effects from involvement (Dickson1981)
2.4.1 Direct involvement
According to Bell (1979:5) direct employee involvement in decision making involves
the individual in relation to his own job and his immediate working environment, means
that the individual employee takes over or is drawn into certain managerial decisions,
which have traditionally been taken by management alone. Moreover (Dickson 1981)
argues that in direct participation, the employee has the personal opportunity to speak
up, even though the opportunity for influence might be small.
Further, to be really meaningful to the employee, however, direct participation will
include; the provision of all information relevant to his job, consultation particularly
about changes that may affect him, a personal involvement in the decision-making
process at his own level (Bell 1979). The great majority of employees, this is what they
are most interested in and what they regard as important. Direct type of employee
involvement is in general only applied to lower-level management decisions, such as
decisions regarding how work operations should be carried out, although there are
certain examples of direct employee involvement in middle or higher-level management
decisions concerning technical and organizational change through project groups.
Knudsen (1995)
2.4.2Indirect involvement
According to Clarke’set al., (1972) indirect employee involvement or participation is a
form whereby employees normally participate through representatives rather than in
person. Participative processes whereby employees are involved in decision-making
through their representatives or delegates. Furthermore (Bell 1979), argued that indirect
participation has relatively little appeal for the majority of employees, and in most
situations, only a small minority are willing to take on a representative role, even in a
limited capacity in their own workplace.
14
An organization may have well-written policies concerning involvement, and top
management may even believe it is being practiced, but these policies and beliefs are
meaningless until the individual perceives them as something important to his or her
presence in the organization (Vandenberg et al., 1999).
These two main approaches to participation or involvement of employee in decision-
making, may be characterized as power-centered and task-centered (Clarke et al, 1972).
Power-centered participation involves worker influence over the labour process and
includes participation in policy making. It focuses on the exercise of managerial
prerogative and the balance of power between management and employees in the
organization’s decision-making process (Salaman, 1987).
Basing on the common two types of employee involvement in decision making process
the following form can be applied, shop floor participation, works councils, collective
bargaining and representation on company boards (Cordova, 1982) others include health
and safety, productivity and pension funds and aspects of restructuring and others related
to this.
2.4.3 Workers' Representation about Company Boards
The policy allows for employee directors, elected by employees (or trade unions), to be
appointed to supervisory boards or boards of directors. These boards decide on general
policy for the enterprise and its management, but usually do not function in an executive
capacity, that is, they are not involved in the actual day-to-day running of the enterprise
(Bendix, 1989:120). Workers involvement or participation on the boards offers labour an
opportunity to influence fundamental policy decision, Schrengle (1976:10) argued that,
the proposes that the degree of workers' influence on management decisions depends
not only on the number of their representatives on the board but also on the role and
functions discharged by the board within the company's power structure.
15
2.4.4Shop-floor Participation
Cordova, (1982) state that more and more workers feel the need for shop-floor
participation, they want to have say in matters that affect them and are capable of
making a reasonable contribution to decisions that touch them directly.
According to Schrengle (1976), worker participation at the shop floor level must not be
seen in isolation but as part of more general process of worker participation at various
levels, including, where appropriate, works councils, worker representation on company
boards, and collective bargaining.
2.4.5Works Councils
According to Knudsen, (1995:5). Works councils are the bodies elected by all
employees at the workplace with the aim of meeting regularly with the management.
They are institutionalized bodies for representative communication between
management and the employees of a single plan or enterprise.
In many countries works councils have only limited consultative functions and
consequently lack any effective power. Works councils in some countries deal with
purely peripheral matters, such as canteens, nurseries, recreation and other welfare
facilities (Cordova 1982) By works council means also the bodies whose members are
elected by all the workers in the enterprise, whether union members or not. These bodies
are not supposed to interfere with the collective bargaining rights of the trade unions and
are, at least in most countries, mainly advisory.
2.4.6Collective Bargaining
Collective bargaining is that method of determining working conditions and terms of
employment through negotiations between an employer on the one hand, and one or
more representative workers’ organizations on the other with the view to reaching an
agreement. In Employment and Labour Relation Act No. 6 2004 collective bargaining
means any unit of employees in respect of which a registered trade union is recognized,
or is entitled to be recognized, as the exclusive bargaining agent in terms of this Part or
16
includes a unit of employees employed by more than one employer (Section 66(I and ii)
of the ELRA, Number 6 of 2004).
According to Schrengle (1976), collective bargaining is the chief form of workers'
participation in many countries. It has a double role. This is itself a form of worker
participation because what used to be a unilateral decision on the part of management
becomes an agreed compromise between labour and management.
2.7The Degree of Employee involvement
The degree of employee involvement or participation in decision making means the
extent to which workers or employees actually influence the decision taken within the
organization. The term intensity has been used to mean the same thing by Knudsen
(1995:8) whereby intensity equates with the degree of employee influence afforded by
participatory arrangements at a given level.
According to Sagie and Aycan (2003), the combination of the two-by-two power
distance (low/medium versus high) and individualism (low/medium versus high) give
rise to four approaches to PDM: face-to face, collective, pseudo, and paternalistic
participation
2.5.1Face-to-face PDM
The combination of high individualism and low power distance gives way to face-to-
face interaction. Face to- face PDM is a direct superior-subordinate interaction; thus, the
employees rather than their representatives are involved in decision- making process.
However,Employees who are necessarily involved are those who possess the needed
knowledge and information not possessed by the superior. In other words, managers
provide opportunities for participation on the basis of one’s merits (Witte, 1980; Sagie
and Aycan, 2003)
17
2.5.2Collective PDM
Low or medium Individualism in combination with low or medium power distance
gives rise to collective PDM. It signifies an indirect involvement of employees in the
decision-making process through consultative committees, work councils, or even the
trade unions. Thus, it is an institutionalized involvement of workers in decisions that are
relevant to labour-management relations (Sagie and Aycan, 2003).
2.5.3Paternalistic PDM
It emphasizes high power distance and low individualism. The paternalistic approach
represents the relationship between a superior and his subordinate which is likened to the
relationship between a father and child. The (superior) father figure’ is assumed to know
what is best for the subordinate. He is trusted and expected to make the right decisions,
which would be to the benefit of the subordinates. The subordinates believe that the
superior acts as their representative by taking their well-being and protection into
consideration in the decision-making process. This implies that employees rarely take
part in the work decisions. If they do, participation is typically restricted to senior
employees (Lam, 1986; Sagie and Aycan, 2003).
2.5.4Pseudo-PDM
Pseudo-PDM develops in a high individualistic and high power culture. This form of
participation implies a directive management covered with a mask of participation.
Directive managers pretending to be participative cannot earn the employees’ trust;
rather, organization members are fully conscious of the disparity between the official
democracy and actual dictatorship (Sagie and Aycan, 2003).
Similar classification has been developed also based on the degree of influence that
workers have on decisions, but with a more descriptive terminologyLevine and Tyson
cited by Maree (2000) where they distinguish between consultative involvement and
substantive participation or involvement.
18
Consultative involvement or participation allows employees to give their
opinions, but final decisions are still made by management. This coincides more
or less with Pateman's partial participation.
Substantive involvement or participation includes formal, direct participation
schemes, such as work teams. Members of work teams are given wide discretion
in organizing their own work and operate with little supervision. This conforms
roughly to Pateman's full participation.
2.6Decision-Making
Decision-making is an integral part of the management of any kind of organization, and
is the most significant activity engaged in by managers in all types of organizations and
at any level. Decision-making is defined by Stone and Freeman (1984) as “the process of
identifying and selecting a course of action to solve a particular problem’. Weihrich and
Koontz (1993) define decision-making as “the selection of a course of action among
alternatives”. Moreover Torgersen and Weinstock (1972) talk of decision-making as the
essence of management. Even though other organizational participants might take
decisions, the decision-making capability of the manager will play a major role in the
success of the organization.
Decision-making makes it possible to adopt the best course of action in carrying out a
given task. It becomes necessary to find out the best way when there are different ways
of performing a task and the action finally selected should produce the best results and
should be acceptable to both the workers and management.
2.6.1 Models and steps in decision making process
Verba and Brevis, (2002) distinguishes two primary decision making models, which are
rational and bounded rationality model.
19
When using the rational model, the decision maker makes consistent value-maximizing
choices within specified constraints (Simon, 1986), (cited in Robbins, 2001). The
decision-maker normally selects the best possible solution. Therefore, this is known as
optimizing (Verba and Brevis, 2002).
In the case of the bounded rationality model, the decision maker uses the satisfying
technique by selecting the first alternative that meets the minimal criteria. It has been
highlighted that the rational model is appropriate when the manager is managing non-
programmed decisions, while the bounded rationality model is appropriate when
managers are making programmed low-risk decisions (Verba and Brevis, 2002).
2.6.2 Steps of the Decision-making Process
According to Robbins, (2001) based on rational model; there are six steps in decision
making process as follow.
1stStep: Definition of the Problem or opportunity, a problem exists when there is
discrepancy between an existing and a desired state of affairs (Mitroff, 1998), (cited in
Robbins, 2001). In this step, it is important to distinguish between the symptoms and the
cause of a problem. The cause of the problem should be eliminated, and this will
eventually result in the disappearance of the symptoms (Verba and Brevis, 2002).
2ndStep: Identify the decision criteria. According to Verba and Brevis, (2002) Criteria
are standards that an alternative should meet to be selected as the decision that will
accomplish the objective. Identifying criteria is important because what one person
thinks is relevant another person may not (Robbins, 2001), once a decision maker has
defined the problem, he or she needs to identify the decision criteria that will be
important in solving the problem. In this stage, the decision maker determines what is
relevant and what is not in making the decision. This step brings the decision maker's
interests, values, and similar personal preferences into the process (Robbins, 2001:132)
20
3rdStep: Allocate Weights to the Criteria. The criteria identified in previous step are
rarely all equal in importance. This third step requires the decision maker to weight the
previously identified criteria in order to give them the correct priority in the decision.
4thStep: Develop the alternatives. This step requires the decision maker to generate
possible alternatives that could succeed in resolving the problem or achieving a certain
opportunity. The decision maker, either an individual or a group can use various
techniques to generate creative alternatives. One such technique is using group
participation to generate alternatives, however, no attempt is made to appraise these
alternatives, only to list them (Verba and Brevis, 2002).
5thStep: Evaluate the alternatives, once the alternatives have been generated the
decision maker must critically analyze and evaluate each one. This is done by rating
each alternative on each criterion. The strengths and weaknesses of each alternative will
become evident as they are compared with the criteria and weights or cost benefit
analysis established in the second and third steps.
6th Step: Select the Best alternative. At this step, this model requires computing the
optimal decision. This is done by evaluating each alternative against the weighted
criteria and selecting the alternative with the highest total score and the one which cost
less than the other alternatives.
However according to Harrison (1987), two more steps are added in the six steps
identified which include implementation of the decision and follow-up of the decision
made.
1stStep: Setting Managerial Objectives: The decision-making starts with the setting of
objectives and the cycle ends when those objectives have been reached. This means that
the next complete cycle begins with the setting new objectives.
21
2nd Step: Setting Alternatives: In the decision-making process, the search for
alternatives involves scanning the internal and external environment of the organization
for information. Relevant information is formulated into alternatives that seem likely to
fulfill the objectives.
3rd step: Comparing and Evaluating Alternatives. Alternatives represent various
courses of action singly or in combination that may help attain the objectives. By formal
and informal means, alternatives are compared based on the certainty or uncertainty of
cause-and-effect relationships and the preferences of the decision maker for various
probabilistic outcomes. A clear way is to spell out the consequences that will result from
each decision (Drucker, 2001:355).
4th Step: Making Choice. Only now should the manager try to determine the best
solution (Drucker, 2001: 56). Choice is a moment in the ongoing process of decision-
making when the decision maker chooses a given course of action from among a set of
alternatives. Further, he indicates that there are four criteria for picking the best from
among the possible solutions, which are: the risk, economy of effect, timing and
limitations of resources.
5th Step: Implementation of the Decision. Implementation causes the chosen course of
action to be carried out within the organization. Any solution has to be made effective in
action (Drucker, 2001:358). It is that moment in the total decision-making process when
the choice is transformed from an abstraction into an operational reality.
6thStep: Follow-up and Control. This function is intended to ensure that the
implemented decision results in an outcome that is in keeping with the objectives that
gave rise to the decision-making process.
22
Figure 2.1: Decision making process
Source: Harrison, 1987: 36
According to Apostolos (2000) workers today are more and more being asked by
management to join employee involvement programs in order to improve the quality of
their work lives. Management usually makes the case that the days of destructive
adversarial labor management relations are over and that a ruthless competitive
economic world requires that workers and management cooperate so that both survive. It
is in the best interest of both workers and supervisors to increase happiness and
satisfaction on the job, because happy and satisfied employees are productive employees
who insure the employer’s profit and continued existence of the company and the
worker’s jobs. In such programs management usually wants,
i. Access to the workers' knowledge of the job.
ii. Cooperation In the introduction of new technology without protest.
iii. Flexibility regarding job classifications, work rules, job assignments, the contract for
the purpose of greater efficiencies.
23
Revise objectives
Corrective measures
Setting alternatives
Decision
implementationFollow-up
and control
Setting managerial
objectives
Update
objecti
ves
Comparing and evaluating alternatives
Making choice
iv. Contract changes and sometimes contract concessions.
If the offer of employee involvement is sincere and valid, management, employee or
union representative should meet the following six Conditions:
i. Management involves the union at the highest levels as an equal partner from
planning, through implementation, and evaluation of employee Involvement. The union
equally selects with management any consultants who are hired to set up and coordinate
employee involvement committee.
ii. It is a voluntary process for both union and company. The union selects, elects, or
appoints its representatives on the committees that deal with employee involvement.
iii. Collective bargaining and grievance matters are not a part of the program. These
subjects remain outside of employee Involvement.
iv. Management agrees to the proposition in writing that no workers can be laid off or
downgraded as a result of ideas generated by the workers in employee involvement
committees.
v. Money savings of employee involvement are shared with workers through items such
as more money in the paycheck, free training, upgrading and a shorter workweek. The
union and management jointly determine this.
vi. Management actions on cooperation should be the same as management words.
Management encourages a good relationship in its labor relations with the union as it
simultaneously seeks to settle grievances at the lower levels, does not force the union to
take tons of cases to arbitration so as to bankrupt the union treasury, treats the officers
and stewards of the union with equal respect, assures the right of stewards to be present
at disciplinary interviews, and does not suddenly harass, pressure, or fire union
representatives. The right hand of management employee involvement cooperation
should not be chopped off by the left hand of management hostility and confrontation
with the union. Words and actions must be consistent.
24
If the above terms are not followed by management, the workers and union can quite
rightly suspect that employee involvement is a fraud designed to weaken if not bust the
union. If the union believes that employee involvement is not legitimate, it should
demand that management accept the six conditions of Employee Involvement outlined
above, or expose this program as phony and urge workers not to participate. The union
should educate its people, in the words of one national union, that illegitimate employee
involvement is "an attempt to create a shop floor structure controlled by management,
and pushing management’s point of view, aimed at undermining the union steward
system and bypassing the union. The ultimate goal is to get rid of the union altogether,
or transform it into a totally company union."
2.7Empirical studies
This is an overview of the other researchers works done on the same topic and their
findings:
Musanga,(1996;10) who conducted a research on the significance of employees
participation in decision making, discovered that there had been low productivity in
Tanzania standards, because of ineffective participation of workers in managerial
practices. Most decisions are made by management and not incorporate ideas from
workers, which make workers feel that are not part of such decision; because of these
minority decision, workers feel that they are ignored and that management only exploit
their labour power in order to fulfill their interest. He propose that in order to the
workers participation programmers to succeeds there should be intensive workers
education scheme, together with education committee, meeting procedure should be
followed to ensure effective workers participation, and workers should be involved in
making decision most of policy issue affecting the life of the organization, like budget,
and various strategic planning.
25
Cohen’s (1999) research argued that, employee involvement as an antecedent to
organizational commitment. It goes without saying that employees with high level of
involvement are expected to work harder than those with low level of involvement.
Employee with high level of involvement could be described as one whose job is the
center of his/her life. As such, many theorists like Kahn, 1990 and Lawler, 1986, have
hypothesized that employee with high level of involvement will put forth substantial
effort towards the achievement of organizational objectives and be less likely to
turnover.
According to a study of Fortune 1000 firms by Edward Lawler, a professor of
management at the University of Southern California on business strategy offers the
highest returns between process reengineering, total quality management and employee
involvement. Total Quality Management (TQM) focuses on work methods and process
control to improve performance.
Process Re-engineering employs downsizing (also known as layoffs) to boost efficiency.
Employee Involvement focuses on upgrading workers' skills and knowledge to improve
efficiency and customer service.
According to Professor, management at the University of Southern California is
Employee Involvement. "Each of these three strategies produces an effect but our
studies indicate that Employee Involvement is stronger driver of financial performance
than TQM or Re-engineering, he said employee involvement would be for U.S.
companies to move to foreign countries “where wages are lower" but workers overseas”
would add less value" to the product. "It's hard to find people [in the U.S.] to do low-
value jobs and not terribly productive so if you keep it [the work] in the U.S.,
increasingly the work has to be high value to offset the relatively high wages." And that
requires Employee Involvement". “We have moved away from “no brain" assembly line
work. Workers are adjusting machines and solving problems instead of simply putting
parts together".
26
Again Lawler’s study also found that Employee Involvement “is a long way from being
the dominant way in which Fortune 1000 companies are managed". No more than 12
percent of the labor force works in jobs that might be described as high involvement, so
“there’s definitely a chance for Employee involvement to continue to grow. It has not
yet reached its saturation point," he said.
Edwin(1996) on his study points out that, meeting procedures should be followed to
ensure effective workers participation and workers should be involved in decision
making particularly on crucial matters affecting the life of the company like budget
production and planning. Workers should be motivated in order to raise moral on work
by giving them fringe benefits and good working environment which will help to raise
productivity and make workers committed to their organization. The management
should develop a habit of accepting criticism concluded that, similar studies should
focus on motivation and also insists on good allocation of resources and proper
utilization of the resources.
2.8 Conceptual framework
The conceptual framework shows the relationship between independent variables and
dependent variable on the effectiveness of employee involvement in decision making for
effective performance.
27
Figure 2.2Conceptual frame work on employee involvement toward effective
performance
Independent variables
Dependent variable
Source: Researcher constructs 2014.
The above figure shows both the independent variables and dependent variables where
independent variables are trust, collectivism, collective agreement, meeting, training
and representatives and dependent variable being effective performance, proper practice
of all named independent variables will result into effective performance as well as
28
Employee’s motivation
Meeting
Representatives
Delegations
Meeting and Feedback
Relationship between employee
involvement in decision making
and organization effective
performance
Challenges of employee
involvement
Management Resistance
Cultural differences
Cost
Employee and union
resistances
Organization Effective
Performance
implementation where’s if they are not properly addressed/practiced by organization
they result into poor performance and ineffective management decision.
The dimensions of each independent variable have been identified as follows:
Communicating and Giving Feedback
When teams are given feedback at every meeting concern the decision made, it leads to
the increase of working pressure as well as performance since ach team has a
management sponsor who provides support and advice. Managers and supervisors are
trained in giving feedback during the course. Teams make presentations on their
progress, and management offers on-the-spot feedback. All these opportunities and more
are encouraged as integral to continuous improvement.
Meeting
A meeting is a gathering of two or more people that has been convened for the purpose
of achieving a common goal through verbal interaction, such as sharing information or
reaching agreement. Through meeting employee can get involved in decision made
within the organization and during meeting employee and management can discuss on
what is needed toward achievement of the organizational goals. During meeting
employee can suggest to the management on what is needed as the support from the
management to reach the established performance standards.
Representative
The action of speaking or acting on behalf of someone or the state of being so
represented.
Through representation employee are involved in decision making whereby they can
appoint one or group of fellow employee to represent them in the management level,
where different maters can get solution, and when employee satisfied with management
decision they can also improve their performance. Abdication
29
Delegation
This is the assignment of authority and responsibility to another person (normally from a
manager to a subordinate) to carry out specific activities. It is one of the core concepts of
management leadership. However, the person who delegated the work remains
accountable for the outcome of the delegated work. Delegation empowers a subordinate
to make decisions, i.e. it is a shift of decision-making authority from one organizational
level to a lower one. Delegation, if properly done, is not abdication. When the lower
level employee delegated they feel the sense of belongness which increase morale of
working as well as the increasing in the performance toward the established standards
off the organization.
Cultural differences,
most organization are characterized whether b individualism and others by collectivism,
when organization is characterized by individualism means that employee tend to see
themselves separate from management but though collectivism they feel as the part of
management during decision making process and management also tend to involves
employee in such process so as to make the operations more effective.
Management resistance,
When management is not ready to involve employee in decision making may result to
poor performance as there cold no any motivation to employee as they are implementing
decision which they had not agreed, management need to link the tasks to be performed
with the employee by involving them in the decision- making process so as employee
could know what goal they need to focus on for the growth and organizational
development.
Employee and union resistance,
It has been the tendency of employee to ignore their right to participate in the decision
making process as stipulated in different labour laws which demand the interaction
between employee, employer and employee representative and the management, when
30
this right granted to employer and employee ensured create a conducive environment for
mutual relation within the workplace, but when employee does not recognize this right
by denial the involvement process, actually it lead to ineffective performance of the
organization since no directions as well as understanding between the actors of the
organization being management and employee or employee representatives.
2.9 Research gap
Examining theoretical and empirical literatures in this part it is obvious that, a growing
range of companies in the developing world are practicing employee involvement policy
as the means of increasing employee performance as well as industrial or company’s
productivity and also companies are now increasing to involve employee in
organizational decision making as the way of taking a competitive advantage from those
companies which are not practicing it effectively. However the review expose out that
currently there are no major developments in employee involvement implementation in
east Africa, in particular Tanzania, across all industry sectors although it seems more
active in private sectors than in public sector. Such observations imply that there is a gap
on practice on employee involvement in Tanzania which strongly necessitates researches
to bridge the existing gap.
31
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter describes methods which were used by the researcher to collect data and
information on the study; it also justifies techniques used and its suitability so as to be
clear for practical purpose. This includes the area of the study, research design, target
population, sample size, sampling techniques and data collection methods.
3.1 Area of the study
This is a place where data research was conducted (boundaries to be covered) (swami,
2002) the research was conducted at Serengeti Breweries Limited (SBL) located at
Moshi municipal. The study was conducted using this company as the case because it
was big enough to give the researcher enough information regarding the study.
3.2 Research Design
This is the framework that specifies how each activity should be conducted to
accomplish the research objectives, which include specification of the information
required, designing the instruments, selecting the samples collecting data and analyzing
it (Kothari, 1990).
The researcher used a case study research design due to the following reasons, its
flexibility in data collection methods since researcher would be confined in a single area
being SBL of which the use of research instruments becomes easier compared to others.
The possibility of a much focused study since a unit under the study is intensively
studied. The fact that, researcher would be able to verify information on the spot through
observation and similarly, since the researcher becomes part of the unit of study, there is
a possibility of having accurate information.
32
Case study design provides the basis for generalization for the unit under the study is
true representative of the population and also the design both time and cost efficient. The
study involved both qualitative and quantitative approaches. The strategy was applied
because of the time constraints that did not allow the researcher to carry out a research
over an extended period.
Qualitative research approach in research is a multi-method in focus involving an
interpretive, naturalistic approach to its subject matter. It involves the studied use and
collection of variety of empirical materials, case study, personal experience, thoughtful,
life story interview observational, historical interactional, and visual texts that describes
routine and problematic moments and meanings in individuals lives (Creswell, 1998).
Quantitative research approach is studying things in their natural setting, attempting to
make sense of or interpret phenomenon in terms of their meanings people bring to them
(Denzin& Lincoln, 2000, pg. 3).
3.3 Target Population
The term “target population’ refers to the total number of items from which information
is desired (Kothari, 2010).The targeted population for this research was staffs and non-
staff (casuals) employees of SBL and AK management and Outsourcing Ltd which were
198 from the departments being administration department, finance department,
procurement department, stores department, engineering department, logistics,
packaging brewing , quality, facilities, health, corporate relation and sales department
who were able to provide specific data regarding the study,
3.4 Sample size
This refers to the number of items to be selected from the universe to constitute a
sample. According to (Mugenda, 1999) the bigger the sample the smaller the sampling
error and vice versa. Hence, it is important to obtain the large sample as much as
possible. A reasonable sample that will be selected, will have the level of certainty that
make sure that the level of certain characteristics of data collected represented the
33
characteristics of the total population. According to Manheim (1977)”, sample is a part
of the population which is studied in order to make inference about the whole
population”. In defining population from which the sample is taken, it was necessary to
identify the target population and sampling frame. The target population was the one
which include all units (persons) for which information was required. Under this study
only 30 individuals were taken as a sample of the study and the size selected is due the
nature of the operational activities within the company whereby employee are working
in shifting, as others are working during the day and others at night.
Table: 3:1: Target Population and sample sizeDepartment Targeted population Sample size Percentage (%)Administration 7 3 42.9Procurement 1 1 100Engineering 22 4 18.2Health and Safety 1 1 100Packaging 57 4 7.02Brewing 21 4 19.05Quality 13 4 30.8Store 5 1 20Corporate Relation 1 1 100IS 1 1 100Logistics 34 3 8.8Sales 28 0 0Finance 3 2 66.6Facilities 4 1 25Total 198 30 15.15
Source; research findings from SBL (2014)
3.5 Sampling Techniques
The sampling technique refers to the process of selecting a number of individuals or
objects from a population such that the selected group contains elements representative
of the characteristics found in the entire group (Kombo, 2002).The following were
sampling techniques used by a researcher,
34
3.5.1Judgmental sampling technique,
This is the technique whereby the researcher’s judgment is used for selecting items
which he considers as representative of the population (Kothari 1990). Researcher used
Judgmental sampling where the researcher selected only those who meet the objectives
of the study, Judgmental sampling was very suitable at SBL because researcher could
not consult everyone in the company, researcher followed only those thought to have
information regarding the study.
3.5.2 Accidental sampling,
this method is also named as convenience, haphazard sampling, this is the statistical
method of drawing representative data by selecting people because of the ease of their
volunteering or selecting units because of their availability or easy access, researcher
drawing sample on relationship on networks to which they have easy access(Kothari
1990).. Researcher used this method because of its availability and quickness with which
data gathered
3.6. Data collection methods.
The researcher used both primary and secondary data collection approaches.
3.6.1 Primary Methods
The primary data are those which are collected for the first time, and thus they are said
to be original in character (Kothari, 1990).Primary data are referred to as firsthand
information or raw data which were collected directly from the area of study.
The advantage of primary data is that;
Helped the researcher to cover a wide range of selected sample where literate and
illiterate respondents were accommodated.
Provided the high rate of responses
Helped the researcher to clear for all misunderstandings
35
The primary data was obtained through questionnaires and personal interview with
different employees from the different departments. Also the researcher had self-
observation of the administrative/management activities undertaken in an organization.
3.6.2 Secondary Methods:-
Secondary data refer to the data which have already been collected and analyzed by
someone else and they are collected at second hand (Kothari, 1990) the researcher was
supposed to use secondary data because some information regarding the study was
found on the database of organization also the other reason is that some of the
documents were published but not actually performed by the organization management.
Secondary data was preferred by researchers because:-
They help researches to save time.
They help researcher to broaden the data base from which specific generalization
were to be made.
They help researcher to understand what is not being done by other researches so
as to investigate it.
3.6.2.1 Documentary Sources
The researcher used different documents both published and unpublished data in order to
collect data concerning with the research. This includes newspapers, textbooks, journals,
research reports, and other materials on the similar topic including Diageo Great People
Management (2009), and Diageo Code of Business Conduct (2012).
Basing on primary data, the following methods deployed.
i. Observation
The researcher used observation method by observing day to day operation of the
organization as the means of collecting data in the organization. This gave the researcher
a chance to note what was taking place at the organization hence be able to acquire the
true picture without any bias. Observation method was applied when the nature of data
collected regard the behavior of the people and some activities that are not easily
36
noticed, Observation enabled the researcher to record exactly what people and
management were doing regarding employee involvement.
ii. Questionnaire
A questionnaire is a series of questions asked to an individual to obtain statistical useful
information on a given topic (Martyn, 2007). The researcher used both open-ended and
closed questionnaire since they save much time and gives more freedom to respondents
to give their views. Questionnaires were used to normal workers together with the head
of departments and casuals, who could not get time to be interviewed.
iii. Personal interview
The researcher used both structured and unstructured interview so as to obtain data from
both skilled and unskilled worker where both English and Swahili language were used.
Interview was very useful in collection of data under this study, for those workers who
could not get enough time to fill questionnaires due to nature of their job rather they
made appointment with researcher for interview, also researcher conduct an interview
with Human resource advisor together with the plant manager for detailed information
concern the study, also interview enabled researcher to be able to learn the behavior of
respondent while answering the questions.
3.7Data Analysis and Processing-
Data processing implies editing, coding, classification and tabulation of collected data so
that they are amenable to analysis (Kothari, 2010).
Data analysis refers to the computation of a certain measures along with searching for
patterns of relationship that exist among data-groups (Kothari, 2010).
The researcher used both qualitative and quantitative approaches to analyze and present
data:-
3.7.1 Quantitatively Analysis
This is the method of analyzing data numerically; quantifiable data were analyzed using
quantitative method since they could be expressed in numerical terms. The researcher
37
used mathematical techniques to analyze data into percentages, and charts, lastly present
them mainly through tables so as to express some relationships since maximum
comparability can be well achieved. Before data analysis each question in every
questionnaire was checked for completeness and consistency by the researcher just after
every interview, where unclear and missing information was countered to ensure data
reliability and validity.
3.7.2 Qualitative Analysis
This is the method of analyzing data which in words (not in numeral form). Non
quantifiable data (those which can’t be expressed in numerical terms) such as
respondent’s demeanor, views and behaviors were analyzed qualitatively where various
factual and logical statements are included in this study in a way of analyzing the
gathered data qualitatively. Those statements have included phrases from personal
observations and from field respondents. Content analysis was the method used to
analyze qualitative data. Analysis of the contents of an interview was made in order to
identify the main themes that emerged from the responses given by the respondents.
Themes were carefully identified from the descriptive responses given by the
respondents to each question asked, then each theme was assigned a code in order to
know how many the theme has occurred in the interview, then responses of the
respondents was classified under each identified theme to obtain the frequency of
responses per each identified theme, finally the responses and themes was presented in
the report.
38
CHAPTER FOUR
PRESENTATION OF STUDY FINDINGS, ANALYSIS AND DISCUSSION
4.0 Introduction
This chapter covers presentation of research findings analysis and discussion. The
presentation is based on the main purpose of the study as detailed in the study
objectives. The findings of the study are the result of the analysis of data collected
through various methods such as personal interviews, standard questionnaires,
discussions and physical observations which were processed and presented in the form
of tables and graphs with the purpose of simplifying interpretation, in this study, data
have been presented using tables among others, can be read, interpreted and
understood therefore assist in suggesting possible actions to be taken.
4.1 Findings analysis
The researcher intended to assess the effectiveness of employee involvement in decision
making for effective in private organizations in Tanzania, SBL being the case study.
4.1.1 Simple descriptive analysis
Responses to questionnaires and interview regarding employee involvement in decision
making for effective performance.
Table 4.1 General response from questionnairesRespondents No of questionnaires PercentageQuestionnaires returned 21 84Questionnaires not returned 3 12Questionnaires returned not filled 1 4Total 25 100Source; Research work 2014
39
The above description indicates that 84 percentages of all of distributed questionnaires
were returned by respondents to the researcher and about 12 percent were not returned
where 4 percent of questionnaires were returned but not filled, however due to
respondent’s failure to return or return unfilled questionnaire researcher interviewed
them in order to maintain the number of sample space selected.
4.1.2 Population and sample size
Table 4.1 below indicates sample chosen from the population and represented percent
of sample used, different departments within the organization such as administration,
finance, facility, procurement, brewing to mention but few were taken to enable
researcher in the study. Researcher selects only those who are influencers of decision
making on one way or another including the heads of department.
Table 4.2 Population and sample sizeDepartment Targeted population Sample size Percentage (%)Administration 7 3 42.9Procurement 1 1 100Engineering 22 4 18.2Health and Safety 1 1 100Packaging 57 4 7.02Brewing 21 4 19.05Quality 13 4 30.8Store 5 1 20Corporate Relation 1 1 100IS 1 1 100Logistics 34 3 8.8Sales 28 0 0Finance 3 2 66.6Facilities 4 1 25Total 198 30 15.15Source: Researcher findings (2014)
4.2 Respondents according to demographic characteristics
The respondents who were involved in this study had different characteristics. Include
sex, age and level of education. Researcher tried to involve respondents from different
angles in the organization in order to ensure the success of the study.
40
The sample of this study constituted a total of 30 respondents selected from total
population of 198 which is 15.5% as shown in Table 4.1above. Researcher found that
the demographic characteristics of the population can affect the effectiveness of
involvement of employee in decision making as well as the performance of the
organization as follows.
4.2.1Respondents according to level of education
Table 4.2 describe the level of academic qualifications/education level in relation to the
decision making process of the respondents under this study, the trend shows that among
the respondents there were no any person with PhD but other levels like masters and
bachelor degree do exists, among all there are respondents holding certificates in
different training, also there are some of workers employed due to their experience and
professionals in their field. The implication is that most of employees at SBL are degree
holders as well as diploma holders, and they were a little bit aware of the practice of
involvement in decision making compared to others basing on the experience or other
considerations.
Table 4.3 Respondent’s education levelNo Academic qual. Respondents Percentage Average year of experience1 PhD Holders 0 0 O Years2 Masters 3 10 >5 Years3 Degree holders 12 40 >5 Years4 Diploma and Certificate 10 33.3 >5 Years
5 Experience and others professional
5 16.7 >5 Years
Source: Researcher findings from SBL, (2014)
Fromtable 4.2 above, researcher observe that the level of education of employee
determine the extents of involvement in decision making as those casuals are not given
the equal chance to participate in decision making compared to formal employee.
4.2.2 Sex of the respondents
Respondent’s sex for this study can be analyzed as shown in the table below
41
Table 4.4 frequency and percentage for sex respondentsSex Frequency PercentageMale 22 73.3Female 8 26.7Total 30 100
Source: Researcher findings (2014)
The Table above shows the male female ratio at SBL for formal and informal employee
as used to provide information regarding the study; this illustrate that the ratio of female
is still lower 26.7 % compared to that of males73.3%, whereby in different levels of
decision making that can also affect the effectiveness of employee performance in the
company as they are only implement what is instructed by managers who are mainly
male and this may resulting to inferiority effect to male within the organization.The ratio
of male to female respondents might have reflected nature of production activities at
SBL and deployment trends at SBL. Since the number of male is large compared to
female, it seems that male can influence decision than female, when it comes to the
managerial level, male they have more representative than female; again during the
findings respondents claims on the promise less from the management when they fail
even to implement what was decided. This is illustrated by considering the ratio of male
when compared to female as shown in the figure bellow.
Figure 4.1 Sex ratio of employee at SBL toward involvement in decision making.
73.3 %
26.7 %
MaleFemale
Source: Researcher findings from SBL, (2014)
42
4.2.3 Age of respondents
The respondents who involved from the study had different age where by many
respondents were in group 20-29 (40%) compared to other age groups this was due to
the nature of activities performed in the organization, as most of the operative activities
demands more man power; 30-39 (20%), 40-49 (13.3%), 50-59 (20%), above 60 (6.7%)
Table 4.5: Age RespondentsAge group Frequency Percentage (%)20-29 12 4030-39 6 2040-49 4 13.350-59 6 2060 and above 2 6.7
Total 30 100
Source: Field data, 2014
From the table above can be concluded that the age and experience of employee in the
organization can influence the extent of involvement in decision making, whereby those
employee who are aged are more considered that the other employee who are still new in
the company. This can affect the performance of the organization since during duty
performing does not depend on the age or experience but ability to accomplish the
assigned task.
4.3 The practice of employee involvement at SBL
Researcher wanted to know whether employee involvement is practiced at SBL or not,
so he asked the question to respondents and their responses were as follows:-
Target: whether Management of SBL practice Employee involvement in decision
making.
43
Table 4.6:Response of respondents to question, the practice of employee
involvement in decision making.
Source: Field data, 2014
The table of the result above shows that 82.3 percentage of respondents seen to have
knowledge regarding employee involvement in decision making by responding Yes to
the question, however the remaining 17.7 percentage of respondents said that they do not
see existence of employee involvement in decision making at SBL by responding No to
the question. From the above results since most of respondents being 82.3% responded
yes to the question it can be concluded that employee involvement in decision making is
practiced at SBL and employee are aware of it. The above data can be presented
graphically as follow;
Figure 4.2 practice of employee involvement
No. of Response Percentage0
10
20
30
40
50
60
70
80
90
19
82.3%
2
17.7%
YesNo
Source: Field Report 2014
44
Response No. of Response PercentageYes 19 82.3No 02 17.7Total 21 100
However researcher made self-observation to management activities conducted at SBL
and finally found that employee involvement is among things considered when decision
are made regarding different activities which directly or indirectly affect employee at
SBL.
Apart from the data obtained through questionnaires, interview and self-observation also
the documentary sources also had some data to support the existence of involvement of
employee in decision making at SBL.
According to the results, the participation of employees in decisions seems to be related
to a job level within this area. This comes out in favour of a notable influence of the
variable of 'job level' on responses.Through the results, it can be said that those who did
not recognize the existence of non-involvement of employees in the decision-making
process were only senior managers (department managers) who normally have the
prerogative to participate in decisions made at the workplace because of a centralized
system.
It came to light that the employees felt that their involvement in the decision-making
process has also brought about a change in work attitudes and this experience motivates
and boosts their morale which has awakened a sense of responsibility for assigned tasks
and room for innovation and creativity.
When respondents were asked the reasons for the non-participation of employees in the
decision-making during interview and in questionnaire returned, they reasons, which
appear to be the main reasons. 38.46% of them indicated the unwillingness of the
employee to participate in decision making when they supposed to attend while 61.5 %
of respondents mentioned lack of education to workers and unwillingness of
management to involve workers. They described the centralization system as the reason
for the non-participation of employees. The findings are summarized below.
45
Table 4.7: Reasons for the Non-Participation of Employees in Decision-makingReasons frequencies Percentage Unwillingness or workers to participate 10 38.46Poor education and unwillingness of management 16 61.5Total 26 100
Source: Field Report 2014
The data above on why employees are not involved in organizational decision can be
presented graphically as follow.
Figure 4.3 Reasons for non-involvement in decision making.
020406080
100120
10 16 2638.46%
61.5%
100%
frequenciesPercentage
Source: Field Report 2014
4.3.1 Employee involvement
According to Diageo corporate relation journal of April 2004 on Great People
Management, involved sub-topic of “Simplification and decision making” it is written
that ‘we are driving to the simpler organization that enables faster decision- making, to
beat competitors we must be able to act quickly and give authority to others where
possible. That is evidence on how SBL support involvement of employee in decision
making.
46
According to this document main considerations which are supposed to be done in the
company to support decision making are:-
i. Don’t let the change lead to confusion and unnecessary complexity. You must
challenge yourself and your team to ‘keep it simple’. If a process feel
unnecessary complex-ask the question and challenge appropriately. We do not
want any blindly following-get context, ask why and make recommendations.
ii. The company emphasize on the 20/80 rule. What is the 20% you can focus you
and your team to achieve 80% of the result? You want to make sure you keep an
eye on the big picture and provide this perspective to your team. If you find this
difficult, be sure to clarify priorities with your manager.
iii. Decision-making may be complicated. The document support that in the
transition as you work out new ways of working with your team, your role as
people manager is to help your people to get involved in decision making and get
clarification on who makes which decision, where they empowered to decide,
where do you need them to make recommendations and you decide and what do
you need to rise to your manager. If people don’t understand who makes a
decision, they may experience unnecessary frustration.
4.3.2 Effectiveness of employee involvement
The organization values indicate that there is more emphasis on the practice of employee
involvement by considering their impacts on employee and organizational performance
as different meeting and training matrixes found.
SBL as other organizations in Tanzania is also adhered to labour laws which some of
them like Employment and Labour Relations Act (ELRA) and Labour Institution act
(LIA) support employee involvement through collective agreement between employer
and employee on the terms and conditions of employment on the work place.
47
During this study the researcher found that SBL as other private companies practice
production process they need to concentrate on the highest quality product in order to
maintain its competitive advantage and sustainability by maintain labour turnover
through involving them in decision making to improve performance.
The results of the study obtained from interviews and questionnaires distributed to the
staffs and casual (AK) workers at SBL, the questionnaires distributed showed that, most
of activities performed at SBL have a relationship with involvement in decision making
although it is not taken as serious practice. The results revealed that most of the Officials
at SBL are involved on one way or another in management decision of an organization
by either being in a meeting or through training. This was similarly revealed from
documentary sources such as training and daily meeting matrix, whereby almost all
activities done at the organization are insisted to consider involvement of employee.
When question was asked on whether management practice employee involvement, and
how does it conducted the following revealed;
Researcher revealed that there is ineffective workers participation in decision making at
SBL in most cases workers contribution is not taken into consideration in matters
concerning their affairs or policy making. While management need them to perform
effectively , Workers involvement in making decision on matter affecting them in an
organization is very minimal and top management does not take into consideration.
This study revealed that SBL management involving workers in decision making
through.
(i) Representation
Is the most important way of workers participation of organization on behalf of workers
to defend/protect workers in decision making at SBL, Representation is by one employer
get involved in management decision although this is very rare happening, and the
difficulties of this is that, workers are complaining that it’s not possible for one person to
be able to gather the decision or views of all employee.
48
(ii) Staff general meeting
This meeting includes all employees of SBL and the chairman of the meeting is the Plant
Manager or Human Resource Advisor of the plant, discussing on general performance of
the workers, workers discipline and to what extent the industry has fulfill their mission
and vision to attain their goals planned.
(iii) Departmental meeting
These are the meetings which are conducted every week when a problem in each
department. These meetings are chaired by the heads of department where by workers
take an advantage of providing out their opinions, complaints, and in these departmental
meetings, employees are free to bring out their views, attitude without any barriers or
fear.
4.4 Effectiveness of employee involvement in decision making at SBL
The results shows that employee involvement in decision making at SBL is not active,
and this is because of nature of activities within the plant as some of workers are
working temporary and others on shifting; the measure of effectiveness of employee
involvement at SBL is shown in the following table as per respondents from different
departments.
Target: To assess the effectiveness of employee involvement at SBL, if any.
Table 4.8 Response on effectiveness of employee involvement in decision makingResponse to questionnaire and interview No of respondents PercentageEffective (very high) 9 42.85Not Effective (average) 12 57.14Total 21 100
49
Source; Researcher’s finding at SBL (2014)
The results from Table 4.6 above shows that most of respondents being 57.14% said the
practice of employee involvement in decision making at SBL is not effective, means that
all independent variables identified to be determinant of employee involvement in
decision making are not active as well as not available in the organization, other
respondents being 42.85% suggested that the practice of employee involvement at SBL
is effective, this means that to them all indicators of employee involvement in decision
making are well adhered to. The graph below presents the data above on the
effectiveness of employee involvement in decision making at SBL.
Figure 4.4 Effectiveness of employee involvement at SBL
Effective (very high) Not Effective (average) Total0
20
40
60
80
100
120
9 1221
42.85%
57.14%
100%
No of respondentsPercentage
Source: Field Report 2014
According to this research through various ways as stipulated under this study like
interview and questionnaire the practice is seen through various activities conducted at
the company from when the employee employed as training and induction is issued to
them to ensure that they are aware with environment at the work place. The problem is
50
that just some of variables are adhered to but others disposal are not done that ends at
affecting the workers as well as their performance within the plant.
Once again these results expose a strong divergence between the respondents'
perceptions. Based on the above observations, only department managers have pointed
out that the degree of influence which employees have when decisions are made is high.
On the contrary, the majority of workers found that the degree of influence is very low.
Further, this gives a clear idea that within the participative process within the company
only senior managers, HOD and supervisors have an opportunity to influence the
decisions adopted by the companies.
From the above findings, senior managers actively participate in the decision-making
process, and their views are taken into account when decisions are made together with
line managers and HOD, while workers are either not integrated into the decision-
making processor their ideas are not executed.
4:5Employee involvements toward effective performance
To know whether there is any relation of employee involvement in decision making and
organization performance, researcher ask this question to the respondents ‘do you think
involving employee in decision making would lead to contribute to effective
performance’ the following result obtained.
Table 4.9 Response on employee involvements toward effective performanceResponse No. of respondents PercentageYes 9 42.85No 12 57.14Total 21 100
Source; Research findings at SBL (2014)
In this study 57 % of respondents reported that the deployment of employee involvement
in decision making has contributed significantly to performance ofBL since most of
respondents said that once the company will fails to practice employee involvement will
51
cost a lot to the company including resistance to change as well as strikes due to some
employee will not accept the decision which were not involved before.
But also some employee being 42% reported that since there is pseudo involvement then
they don’t see even if when they will be involved in such decision would change
anything since they are only there to accept the decision made by supervisors.
Figure 4.5Employee involvements toward effective performance
Yes No total0
20
40
60
80
100
120
9 1221
42.85%
57.14%
100%
No. of respondentspercentage
Source: Field Report 2014
4.6Challenges of employee involvement practice at SBL
Through the interview conducted, questionnaires distributed to the respondents and
observation from the respondents from SBL, the study came out with the following
results as challenges of implementing employee involvement at SBL.
i. Shifting activities within the plant
Since within the company there some employee who are working in shifting its difficult
for them to be involved in management decision at all, some of them they found difficult
to attend different training especially those who are working in night session so this
become difficult for them to be involved, this is also associated with willingness of some
employee to get involved in decision making because on observation researcher observe
52
that although during training employee can be there but not all of them can attend such
Training.
ii. Lack of enough knowledge on involvement in decision making
One important challenge to management as a whole is to ensure each employee is aware
of this concept of involvement in decision making, which need employee redness. This
is the biggest challenge seen during interview and even during distributing
questionnaires to respondents; the concept of involvement in decision making is not in
the mind of the people/employee, sometimes people perceive that involvement in
decision making is just the issue of top management, HOD and supervisors only. Again
to ensure that all employees are involved in decision making which include training is
also difficult.
iii. Estimating hidden costs and potential savings
According to this investigation most of respondents interviewed suggests the issue of
costs being a big challenge to employee involvement, they mentioned some of the costs
associated with this implementations as reporting costs, as also they said that it is
difficult to stop operations in production and having all people at once, although they do
not look on another side by calculating the benefits and do costs benefits analysis to find
out whether to involve them towards performance or not at SBL.
iv. Implementation of employee decision
The results from the findings shows that the implementation of employee involvement in
decision making policy becomes difficult because once employee are involved and
giving out their ideas and suggestions, these views of employee are not considered by
management that is to say management practice pseudo involvement whereby employee
are involved only physically but their contribution are not regarded.
53
v. Lack of understanding on labour laws
In this study researcher realize that there is poor understanding of labour laws such as
ELRA, LIA, and others laws which guide the relationship between employer and
employee in the work place, and this bring difficulties in managing employee especially
to make them aware on their rights and limitations of such rights, due to this even others
fail to know if it is their right to be involved in organizational decisional making since
they are part and parcel of such decision. The implication of this is that, there has been
an increasing of cases at the CMA because once employee fails to understanding the
laws the regarding it as unfair treatment so they report to CMA for mediation or
arbitration which is also cost full to organization especially in time.
54
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction.
This chapter gives the general summary of the research findings as discovered by the
researcher, the conclusion of the findings and also provides the recommendations on
what measures and actions should be taken by private organizations particularly SBL so
as to ensure effective employee involvement in decision making for effective
performance.
5.1 Summary of findings
The main purpose of this study was to assess the effectiveness of employee involvement
in decision making for effective performance in private organizations in Tanzania
particularly in Serengeti Breweries Limited located in Moshi Kilimanjaro. In this study
the researcher was interested to know measures taken by the SBL in ensuring there is
effective employee involvement in decision toward effective performance and identify
key benefits of employee involvement if any.
In this research a case study research design was used since it give more chance for the
researcher to study the organization. In this research methods of data collection such as,
Questionnaire, observation and Interview were used and a sample space of thirty (30)
respondents was used where by most of the respondents tried their best level to answer
the questions as asked by the researcher.
The findings of the study delineate that employee involvement has played a significant
role on effective production as well as performance at SBL in various aspects by
facilitating different activities with high efficiency which employee are affected to such
decision which are made..
55
The findings via various explained method reviled that although employee involvement
at SBL is practiced but it is not effective as large number of respondent said that the
level of involvement is almost average.
Other findings indicate that following positioning of employee involvement, SBL has
benefited in several ways particularly in the following areas
i. Improving production.
Employee involvement in decision making at SBL has increasing the production
capacity, and this is due to employee morale as they are performing things which they
agreed with management, also production increased as employee are innovating
different way of doing their assigned job so as to increase production as well as to
achieve the overall organizational objectives.
ii. internal customer satisfactions
In any organization employee are the internal customer to the organization, by involving
employee in the process of organizational decision making has increasing satisfaction to
the employee of Serengeti Company which also contribute to the satisfactions of
external customer who are served by the internal customer being employee.
iii. Adoption of changes
It is through the involvement of employee in decision making which made possible for
employee to acquire different organizational changes when occurred since they are
aware of the changes, employee were aware of the so called Labour laws and their
industrial relation in the work place because of being involved in decision making
process.
Also this study identified key challenges of implementing employee involvement
which may hinder its effectiveness not only on the private organizations in SBL but also
on the public organizations such as;
56
i. Management resistance.
The effectiveness of employee involvement indecision making depends on the ability
and willingness of management, among the other factor which hinder the effectiveness
of employee involvement in decision making is management resistant which they think
could lead to challenges management.
ii. Costs.
Organization find difficulty to foregone production activities and then to have all
employee at one, as all the process within the plant are mechanized and they need
human operations, so when for example there is general meeting between employee and
the management not all of them can attend the discussion as well even when they will be
presented not all their views can be accommodated. Its somehow difficult to ensure
effective employee in decision making since some of participative activities are done
during the day while other employee are on night shifting and even when they are
needed back for morning meeting others are found tired and they fail to participate
actively such as in meeting or any other occasion.
iii. Cultural differences.
The aspects of cultural differences is individualism and collectivism, individualism is
when organization do not believe in participation of employee in decision making while
in collectivism employee are involved in decision making, when management centralize
the power of decision without regarding the other part of employee it could hinder the
effectiveness performance of the employee.
iv. Employee and trade union resistances
Another challenge for involving employee in decision making is resistance from
employee and unions of employee who does not recognize their right of being involved
in decision making within the organization by considering that would lead to wastage of
time and again they have the assumption that even if they get involved there their
decision are not regarded by the management.
57
5.2 Conclusion
Employee involvement is the way of the future. This research and other sources
illustrate the specific benefits and opportunities of employee involvement in the private
sector. A range of resources and organizations exist to assist both the public and private
sector in adopting employee involvement practices as the way toward performance.
From the study researcher can make a conclusion that SBL does practice employee
involvement which is normally done in daily meeting within departments and in every
Monday where the company conduct different training and in this day production
activities does not operate.
On the other side of effectiveness of employee involvement in decision making, come
up with conclusion that although the company believe in this idea but it’s still not
effective since some employee and even staffs are not aware of the practice. It’s true that
effective performance of the organization being private or public depends on how
employee are valued and their access to decision making, when employee are involved
in decision making it lead to effective performance because they are implementing
something which they agreed. For an organization which fails to deploy employee
involvement in decision making will suffer from low production and even employee
restless as large.
The practice of employee involvement can be witnessed in both public and private
organization in Tanzania and the challenges of its improvement are witnessed in both
sectors.
Ensuring clear understanding and knowledge on the importance of participating in
decision making by both employer (management) and employee in both private and
public organization remain a big challenge in making employee involvement to
materialize.
58
Despite several challenges, identified and addressed in the private sector SBL being the
case, the potential to reduce employee turnover, employee complains and strikes, to
reduce cost of operation and production are important benefits to communicate. The
interviews and other documentary sources indicated that organizations which tend to use
two way communications they can take a competitive advantage from those companies
which are not using the feedback method in their organization. Following and measuring
effectiveness of involvement and its benefits is an area for further emphasis within the
private sector.
Finally, from the respondents’ assessment of management attitude towards workers
involvement, it could be concluded that the management in the private sector are not
favorably liable towards granting workers significant measure of involvement in
management decision making. This finding would lead us to conclude that a lot needed
to be done to change the current negative temperament of the private as well as
Tanzanian management towards workers involvement in management decision making.
5.3 Recommendations
After undergoing this study in Serengeti Breweries Limited (SBL), the researcher comes
up with recommendations underlying measures and approaches to be used to ensure
effective employee involvement practice into private organizations. In summary, the
following actions should be undertaken in order to promote an effective practice on
involving employee involvement in decision making toward performance
i. Organization should provide education on participation or involvement of
employee in decision making.
Organization should explore and focus educating their employee on how to engage in
decisions which are invited to participate and how employee can benefit from engaging
to such decision.Education is very important provided most of workers at SBL do not
know anything and others
59
From the study conducted at SBL some of respondents argued that they are not active
concerning employee involvement so they need to be educated to broaden their mind on
this practice since the practice is very important, workers should also be educated about
the significances of this concept t in order to make sure that they implement the practice
without being forced. Heads of department should also work closely to their employee
so to get and provide feedback to employee.
ii. Organization should increase number of workshops, training and seminars.
From this investigation the results shows that the organization has been trying to do
seminars, workshops and training almost every Monday concerning different matters
which affects employee welfare as well as management at large. Among the things that
are important in promoting awareness on the issues of employee involvement within and
outside the organization is workshops, training and seminars, these workshops should
start from management to staffs and to the workers and here is where employer can
elaborate clearly on the right of employees in the work place as the labour laws and
organizational policy demand. People are committed when they care and want to achieve
something. It is therefore recommended that brainstorming workshops which would help
people to think through the practicality of ideas and negotiating with others a result
which is acceptable to as many people as possible is encouraged.
The respondents via interview claimed that the training and seminars conducted at SBL,
other employee are not attending because, others are doing their activities at night so
their find difficult to come for such training.
iii. Top management
It’s important for top management, especially to the General Directors in this domain to
share decision-making power in order to allow at least all employees regardless their
hierarchical levels to influence decisions made at the workplace. That is, there needs to
be a total decentralization of the system. Leadership can also enhance employee
involvement, it provides opportunity to encourage and guide employees who show
leadership skills and abilities to sharpen and hone those skills for the benefit of all.
60
A participative system is a huge and complex issue. Important efforts should, however,
be made in terms of educating and training employees in general, and particularly
worker representatives on the principles and purpose of involvement.
iv. Communication
From the study communication is one of the vital methods of any relationship and has
been observed to lead to a cohesive and effective means of accomplishing organizational
goals, management should ensure there is clear flow of communication especially two
way communication so as to ensure feedback within the organization . The initiative of
belongings on the part of the employees would lead to a positive working environment
as well as create and provide for encouragement and maintenance of such organization
as well as working conditions.
v. Policies and strategy of an organization
Organizational policy should not deal with the production or organizational benefits but
also it should state clearly where employees are made to understand the big picture
about the company’s goals and strategies and understand how their own function and job
fit into the scheme of things and the spirit of team commitment should be built. When
these attributes are placed and practiced in an organization, it will lead to commitment
and ownership of organizational goals and improved performance which will culminate
into increased productivity and eventually the bottom line which every organization
aspires to achieve.
5.4 Areas for further study
The researcher finally recommends that, this research is in a continuous basis that it can
be further studied, since the researcher based only in SBL, one can also study the same
topic in Tanzania organizations such as public organizations and other private
organizations. Then the results can be useful for concluding and comparing the
effectiveness of employee involvement practice and how to overcome the challenges of
its implementations.
61
REFERENCES
Adam and Kamuzora, (2008) Research Methods for Business and Social Studies, 1st
Edition,Mzumbe University, Tanzania
Anderson, G .1990. Fundamentals of Educational Research. London: The Palmer Press.
Apostolos (2000) Employee involvement,Dissemination of innovation and knowledge
management techniques University of Crete
Bendix, S. (1989).Industrial Relations in South Africa.Cape Town: Juta
Clarke O. et al (1912). Workers' Participation in Management in Britain.London:
Heinemann Educational Books.
Cotton, J. (1993) Employee Involvement: Method for Improving Performance and Work
Attitudes. California: SAGE Publications, Inc.
David, F. (2005).Strategic management: Concepts and cases. (10th ed.).New Jersey:
PearsonPrentice Hall.
Kothari C R (2004): Research Methodology: Methods and Techniques, 2nd Edition,
New age International (P) Limited, New Delhi.p.153.
Lawler III., E. E. (1996). From the Ground up: Six Principles for Building the New
Logic Corporation. San Francisco: Jossey-Bass Publishers.
Mahunda, Musanga(2003)Research Report,An assessment of employees participation in
decision making,June 2003
McGregor, D. (1960). The Human Side of Enterprise. New York: McGraw-Hill.
Mitchell, T. (1996).Participation in Decision making: Effects of using one's Preferred
Strategy on Task Performance and Attitudes. Journal of Social Behaviour&
Personality,Vol.11 No 3: 531-146
Rathnakar (2012) Workers participation in management decision making, Behel
Robbins, S. (2001). Organizational Behaviour.New Jersey: Prentice Hall.
Salaman, M. (1987).Industrial Relations: Theory and Practice. London: Prentice Hall
Tanzania (2004) Employment and Labour Relations ActNo. 6 of 2004, Dar es Salaam:
Government printer.
Tanzania, (2003)Labour Institutions Act, Dar es Salaam: Govt. Printer
62
APPENDICES
APPENDIX I
QUESTIONNAIRES
Dear respondent,
My name is Assenga Joachim P. Pursuing Bachelor of Public Administration (BPA) at
Mzumbe University. I am conducting the research on “Assessment on Effectiveness of
Employee Involvement in Decision-making for Effective Performance in Private
Organizations” here at Serengeti Breweries Limited (SBL).
Kindly oblige by taking few minutes of your time to assist in supporting me in this study
by completing the questionnaire attached. Please note that the strictest confidentiality is
assured with respect to answers given as facts are needed for academic purposes.
Please tick where appropriate.
1) Sex: Male ( ) Female ( )
2) Age: a) 20-29( ) b) 30-39 ( ) c) 40-49 ( ) d) 50-59 ( ) e) above
60 ( )
3) What is your level of education?
a) Secondary school ( )
b) Diploma ( )
c) Bachelor Degree ( )
d) Postgraduate ( )
Others ( ) specify…………………………..
4) How many years have you worked with your organization?
a) Less than 5 years ( )
b) Between 5-10years ( )
c) More than 10 years ( )
5) Position in your organization: ………………………………………
63
6) Does your organization practice employee involvement in decision making?
a) YES ( ) b) NO ( )
7) Are you involved in decision making in your organization?
a) YES ( ) b) NO ( )
8). Does your job position relate to degree of involvement in decision -making?
i. YES ( ) ii) NO ( ) if yes how
……………………………………………………………………………………………
……………………………………………………………………………………………
9) Do you think involving employees in decision-making would contribute to effective
performance?
a) YES ( ) b) NO ( )
Briefly explain
………………………………………………………………………………………..........
................................................................................................................................
10) Would you say that the degree of employee's participation in decision-making
process in your company is?
i. Very high ( ) ii. High ( ) iii.Average ( ). iv. Low ( ) v. Very low ( )
11) There any benefit to your organization from practicing employee involvement in
decision making?
a) YES ( ) b) NO ( )
Mention them if any;
i. ………………………………………………
ii. ……………………………………………….
iii. ………………………………………………….
iv. ………………………………………………
v. ………………………………………………
64
12). Do you think by involving employee in decision making will cost anything to your
organization?
a. YES ( ) b. NO ( )
If yes how?
..............................................................................................................................................
..............................................................................................................................................
.............................................................................................................................
11). Is there any consequences of low or non-involvement of employee in decision
making toward performance?
a) YES ( ) b) NO ( )
If yes mention them
vi. ………………………………………………
vii. ……………………………………………….
viii. ………………………………………………….
ix. ………………………………………………
12) If employees are involved in the decision-making process, would it lead to
acceptance of these decisions by all?
a) YES ( ) b) NO ( )
13). what are the impediments/difficulties to the employee involvement in decision-
making within your organization?
i...…………………………………………………………..
ii. …………………………………………………………..
iii……………………………………………………………
iv…………………………………………………………….
14) On your opinion what do you think can be done so as to improve/ materialize
employee involvement in your company?
……………………………………………………………………………………………
……………………………………………………………………………………………
THANK YOU VERY MUCH FOR YOUR ASSISTANCE
65
APPENDIX II
INTERVIEW WITH SENIOUR MANAGERS
1. Does SBL believe in the concept of Employee Involvement in decision-making for
effective performance?
2. Do you think by involving employee in decision making would lead to effective
performance?
3. How often does management meet with employees as;
a. A general body?
b. A representative of the workers?
4. There any benefits have been derived from or expected to be derived from involving
employees in decision-making?
5. There any difficulties for involving employee in decision making?
6. What are the consequences of non-involvement of employee in decision making in
your organization?
7. What should be done so as to improve workers involvement in decision making in
your organization?
66
APPENDIX III
ORGANIZATION STRUCTRE FOR SBL ( MOSHI PLANT)
BREWERY STRUCTURE
67
PLANT MANAGER / HEAD OF BREWERYL4
Team AssistantL6aVacant
Packaging ManagerL4
Safety ManagerL5
Brewing ManagerL4
Quality ManagerL5
Site Security managerL5
Engineering services Manager L4
