IMPACT OF MANAGEMENT DECISIONS ON WORKERS’ PERFORMANCE

Abstract                         –        –        –        –        –        –        –        xii

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study        –        –        –        –        –        –        1

1.2     Statement of Problem              –        –        –        –        –        5

1.3     Objectives of the Study  –        –        –        –        –        –        6

1.4     Research Questions                 –        –        –        –        –        6

1.5     Research Hypotheses              –        –        –        –        –        7

1.6     Significant of the Study           –        –        –        –        –        –        8

1.7     Scope of the Study                  –        –        –        –        –        8

1.8     Limitations of the Study          –        –        –        –        –        –        9

1.9     Definition of Operational Terms       –        –        –        –        10

References                     

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1              Concept of Decision Making   –        –        –        –        –        12

2.2    Types of Decisions Making     –        –        –        –        –        13

2.3     Key Factors in Decision Making       –        –        –        –        15

2.4     Why Make Better Decisions    –        –        –        –        –        16

2.5     The Decision‐Making Process –        –        –        –        –        18

2.6              Decision Quality            –        –        –        –        –        –        28

2.7     Organisational Decision Making       –        –        –        –        29

2.8     Organisational Decision Making Models    –        –        –        31

2.9     Complexity of Organisational Decision Making  –        –        33

3.10            How Much Do Organisational Decisions Cost     –        –        35

2.11   Smart Organisation                 –        –        –        –        –        37

2.12   How Organisations Make Good Decisions –        –        –        39

2.13   Best Practices in Organisational Decision Making         –        –        40

             References

CHAPTER THREE

RESEARCH METHODOLOGY

• Introduction                            –        –        –        –        –        47
• Research Design            –        –        –        –        –        –        47
• Sources Of Data            –        –        –        –        –        –        48
• Instruments for Data Collection        –        –        –        –        49

3.5      Population of the Study         –        –        –        –        –        –        50

3.6     Sample Size Determination     –        –        –        –        –        50

3.7     Sampling Procedure                –        –        –        –        –        53

3.8     Validity and Reliability of Data and Test Instruments  –        54

3.8.1 Validity of Measurement         –        –        –        –        –        54

3.8.2   Reliability of Data                  –        –        –        –        –        54

3.9     Questionnaire Design and Administration –        –        –        55

3.10    Data Treatment Technique(S)          –        –        –        –        –        55

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

CHAPTER FIVE

SUMMARY OF MAJOR FINDINGS, CONCLUSION AND

 RECOMMENDATIONS

5.1     Introduction                            –        –        –        –        –        83

5.2     Summary of Major Findings   –        –        –        –        –        83

5.3     Conclusion                     –        –        –        –        –        –        84

5.4     Recommendations                   –        –        –        –        –        –        84

5.5     Area of Further Study   –        –        –        –        –        –        86

Bibliography

Appendix I

Questionnaire

LIST OF TABLES

Table 4.1:  Questionnaire Distribution      –        –        –        –        58

Table 4.2:   Gender Distribution of the Respondents    –        –        59

Table 4.3:   Marital Status of the respondents     –        –        –        59

Table 4.4:   Educational Qualification                 –        –        –        60

Table 4.5:      Employee on equity salary enhance workers performance.    61

Table 4.6:   Remuneration and workers performance.   –        –        62

Table 4.7:   Salary significantly affect workers    –        –        –        63

Table 4.8:      Overtime decision attach with money motivate workers.         63

Table 4.9:   Promotion decision based on merit enhances

workers performance                        –        –        –        64

Table 4.10: Promotion based on qualification encourage

workers performance                        –        –        –        65

Table 4.11: Promotion decision based on active service enhance

workers  performance                       –        –        –        66

Table 4.12: Ability to stick by their decision promote firm

performance.                                     –        –        –        67

Table 4.13: Effective training of employees increase their

productivity                                      –        –        –        68

Table 4.14: Training and development increase job satisfaction

and morale among employees           –        –        –        69

Table 4.15: Training and development reduce employees

discrepancy among workers performance            –        –        70

Table 4.16: Training increase employees motivation and

organisation profitability.                 –        –        –        71

Table 4.17: Employee involvement in decision making have a

positive return on company investment.    –        –        72

Table 4.18: Employee involvements in goal setting enhance

performance                                      –        –        –        73

Table 4.19: Employee involvement reduces product failure.   –        74

Table 4.20: Employee involvement in decision making increase

workers sense of belonging               –        –        –        75

LIST OF FIGURES

Figure 1: Key Decision making Groups      –        –        –        –        14     

Figure 2: Element of quality decision      –        –        –        –        28

ABSTRACT

The purpose of this research work is to highlight the impact of management of decision on workers performance. In today’s world, organisations are faced with thousands of decisions daily, and how they make these decisions will have a huge impact on their financial status (Forrester, 2003:44). These decisions set the tone for the entire organisation in terms of image, profits and customer service. That is why it is very important that organisations adopt best practices and execute good judgment when it comes to making decisions.Specifically, the study aimed to pursue the following objectives: to determine the effect management remuneration decision on workers performance, to identify the influence promotion decision on workers  performance, to ascertain the how   employees involvements in management decision affect  workers performance, to  evaluate the effect of effective decision making of training and development on workers performance. The study had a population size of 1,210, out of which a sample size of 303 was realised using Taro Yamene formula at 5% error to tolerance and 95 % level of confidence. Instrument used for data collection was primarily questionnaire and interview. The total numbers of 303 copies of the questionnaire were distributed while 283 copies were returned. The descriptive research design was adopted for the study. Four hypotheses were tested using Pearson’s moment correlation coefficient, chi-square (x2) and Z- test statistical tools. The findings indicate that Management decisions on worker remuneration significantly affect workers’ performance in manufacturing firm. Promotion positively influence workers performance in manufacturing firms, Employees involvements in management decision significantly affect workers performance in manufacturing firms, Training and development significantly affect workers. The study concluded that organizations are faced with thousands of decision on a daily basis, and how they handle and process these decision could have a substantial impact on their financial status and Wellbeing of workers. The study recommends that Organizations should make quality decision not considering the financial implication.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

In today’s world, organisations are faced with thousands of decisions daily, and how they make these decisions will have a huge impact on their financial status (Forrester, 2003:44). These decisions set the tone for the entire organisation in terms of image, profits and customer service. That is why it is very important that organisations adopt best practices and execute good judgment when it comes to making decisions. Because the right decision at the right time could help organisations achieve great success whereas a wrong decision could end up costing them dearly (Capgemini, 2004:12).

The most important job of any manager is making decisions. It is also the hardest and the most critical. With decisions valued in their millions (Forrester, 2003:97) a bad decision can damage a image of organisation (Hammond et al., 2006:86). Fragmented and inaccurate data causes executives and managers to make delayed and flawed decisions costing millions (Forrester, 2003). Finding the right data at the right time and analysing it fast enough remains a challenge for businesses as poor decisions can be very costly (Teradata, 2004:54).

Managers within organisations are often making bad decisions, solving the wrong problems and ignoring uncertainty (Forrester, 2003:32). According to (Forrester, 2003:65), managers make bad decisions and find it hard to decide because of decision biases, they don’t want to give anything up nor do they want to make mistakes. That is why they procrastinate and only make decisions when events force them to. Managers often solve the wrong problems because they lack a structure for making decisions. As a result, they don’t generate value creating alternatives, they look for quick and partial solutions and they fail to seek out all the necessary data or clarify objectives (Forrester, 2003:12). Managers also tend to ignore uncertainty they focus on a single outcome, such as the most likely case, and take refuge in ambiguity or imprecise language. Managers use the complexity of uncertainty as an excuse for not deciding (Forrester, 2003:75).

Decisions play a vital and crucial role within large organisations, and how they react could very well have a substantial impact on their financial standing. Failure to make the correct decision could lead to huge financial loss, while on the other hand making the right decision could help achieve a financial gain. The importance of the correct decision being made cannot be signified. Therefore, all of the factors affecting decision making need to be considered when deciding on a course of action.

The organizational decision making process involves proper and efficient implementation of strategic plans and methods to achieve desired organisational objective. Let’s examine some key areas that affect the overall process.

Often one difficulty facing an organization is that multiple divisions are involved in the overall decision making process. Making a decision can have different implications for each respective division. Gaining agreement from all stakeholders can be a challenge. When a companies overall strategy depends on the support of all business units, organization wide support is crucial.

Key strategic evaluation and planning is crucial. This planning needs to address the overall strategic goals of the organization but also the end effects that impact workers outside of the decision chain. Organizational dysfunction and worker resistance can result if proper thought and attention is not directed towards front line efforts. Organizational change professional deal specifically with these issues. Unifying the company at all levels is very important. A failure to calculate and anticipate the implications of key decisions can derail a companies goals and objectives.

Organizational change management and planning processes seek to address the implications that a change in one input can have on the corresponding output. The evaluation and process evaluation that comprises part of the change management approach seeks to measure and anticipate the effect strategic decisions will have on company resources and labor. This permits the careful monitoring and benchmarking to adjust process as required to more closely align organizational objectives with desired outcomes.

With the businesses of today facing shortened product lifecycles, organizations are facing intense competitive pressures to build market share to stay ahead of rivals. Process changes, the introduction of new and improved disruptive technologies are forcing companies to adapt new business goals and objectives in shortened timeframes. This places corresponding stresses on all levels of the organization. As business units are forced to respond to top level management goals, flexibility has become a modern day requirement.

Organizational change management is a growing discipline to help managers become better positioned to understand how the decision making process can affect individuals at a cognitive level. Performance improvement is intimately linked to this. As companies transition into the future, change management is expected to become increasingly important.

1.2   STATEMENT OF PROBLEM