IMPACT OF EMPLOYEE PARTICIPATION IN DECISION MAKING IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In today’s turbulent environment and intense competition, organizations are forced to seek ways to be more flexible, adaptive and competitive as they are faced with competitive pressures and rapidly changing markets, (David 2005). Above all organizations 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 employee must be involved if they are to be committed to changing their behaviors in work, in new and improved ways. Employee involvement is one of the important aspects of organizational life to achieved increase organizational effectiveness and positive employee perceptions. Decision making whether in private life, clubs, government, military, educational institutions or in business organizations have the same essential functions. It is primarily a tool for problems solving. It is a daily phenomenon, which every rational human being cannot avoid. Decision making could involve such simple and uncomplicated issues as deciding on what to take for breakfast or selecting an outfit to wear to a dinner party. It could also involve complex and strategic issues such as an entrepreneur deciding on when and how to carry out an attack. However, whatever issue is involved there is one central point which cannot be ignored, which is the existence of various alternatives relevant to the problem from which the decision maker must choose one i.e. the best among all the alternatives. This choice demands a conscious and deliberate effort on the part of the decision maker. Traditionally, people rely on judgement and intuition in making decisions. In the modern context as a result of advancement in technology, science and business development, a systematic and consistent way of making optional decision making which makes use of highly qualitative tools such as mathematical models, computer etc. The use of judgement and intuition is still relevant in the modern context in that, they serve as compliment to the scientific approach.

Decision making is so important in our daily lives that adopting laisefare attitudes in the formulation could result to a grave consequence. Government are known to have fallen because of wrong decisions. Also, another wise business unit could be crippled into bankruptcy because of wrong decisions. Therefore, for any individual, corporate body or government to function well, sound decision is imperative. Making decisions demands recognizing the basic fact that a situation exists which calls for a change. This change when effected in bound could affect others. In other words, decision making affect group objectives. this is why people tend to resist new decisions especially in a business organization. This is so because, workers have various objectives, which narrows the workers/organizational objectives. There is no better way to this than to follow a logical sequence of decision making, making use of all available modern techniques in gathering and analyzing information. The benefit of doing this is to outstrip the cost in terms of both medium and long range benefits accruing. Since decision making has become of the most important functions of management study, it is the researchers believe that thorough examination of all facts of this concept will prove most rewarding to Nigeria business organization.