EMPLOYEE PARTICIPATION AND ORGANIZATIONAL PRODUCTIVITY OF SMALL AND MEDIUM SCALE ENTERPRISES
Abstract
This study focused on Employee Participation and Organizational Productivity of Small and Medium Scale Enterprises. The study used a cross sectional design and the study adopted the cross-sectional survey method in the generation of data. The target population of the study is the entire SMEs registered with SMEDAN in Bauchi State totaling 364. The sample size was obtained using the Krejcie and Morgan (1970) table for determining minimum returned sample size for a given population. For our population, the table placed our sample size at one hundred and eighty three (183). After data cleaning, only data of 169 respondents were finally used for data analysis. The sampling procedure to be used in this study is the purposive sampling technique which focused on owners and operators. Descriptive statistics and Spearman’s rank correlation were used for data analysis and hypothesis testing. Empirical results confirm that there is a positive significant relationship between Employee Participation in Decision Making and Organizational Productivity of Small and Medium Scale Enterprises. The study concluded that Employee Participation has a positive and significant relationship with profitability and market share as measures of organizational productivity. The study recommended that management must make it a part of its standard policy to ensure all employees opinions, suggestions, view are subjected to their merit and accepted where applicable after employees‟ consultation. Employees should be allowed to make contribution in policy development as they play a major role in policy implementation and this among others will increase organizational productivity through employee delegation.
Key Words: Employee Participation in Decision Making, Organizational Productivity, Market Share and Profitability
CITATION: Sanusi, M. M., Abubakar, B. S., Chukwukere J. C. & Haruna, A. S. (2021). Employee participation and organizational productivity of small and medium scale enterprises. The Strategic Journal of Business & Change Management, 8 (2), 599 – 610.
Full Text:
PDFReferences
Abdulrahman A. A (2016), Employee Participation in Decision-making (PDM) and Firm Performance, International Business Research 9(7):64.
Adewumi, F. (1993). Industrial relations economic development and democracy: A preliminary note, E.F. Osuji Challenges facing industrial relation in Nigeria in the context of emerging new economic and political order (Department of Adult Education University of Ibadan), 59-82.
Adubasim, I. E., Unaam, A. O., & Ejo-Orusa, H. (2018), Knowledge transfer and organizational performance of deposit money banks in Port Harcourt, Nigeria. American Journal of Humanities and Social Sciences Research (AJHSSR), 02(12), 90-98
Anene, E. C. (2014). What Difference Does Inventory Control Make In Typical Small Scale Farms’ Profitability? International Journal of Management Sciences and Business Research, 3(10), 1 –4
Armstrong, J. and Green, K. (2007). “Competitor Oriented Objectives: The Myth of Market Share”. Internal Journal of Business 12 (1): 116 – 134
Beardwell, J., & Claydon, T. (2011). “Human Resource Management: A Contemporary Approach. Pearson Education.
Beardwell, J., & Claydon, T. (2011). “Human Resource Management: A Contemporary Approach. Pearson Education.
Bhatti, K. & Nawab, S. (2011). Effect of direct participation on organizational commitment, International Journal of Business and Social Science, 2 ( 9).
Bhuiyan, M.H (2010). Employee participation in decision making in RMG sector of Bangladesh: Correlation with motivation and performance. Journal of Business and Technology (Dhaka) 5(2), 122-132
Bullock, R. & Powell, S. (N.Y). “What is Employee Involvement”, University Consulting Alliance. Available Online and Retrieved from:
Busck, O, Knudsen, H., & Lind, J. (2010). The transformation of employee participation: Consequences for the work environment, Economic and Industrial Democracy, 31(3), 285-305.
David, F. (2005). Strategies management: Concept and cases (10th Ed.) New Jersey: Pearson Prentice Hall.
Dede C.H. (2019), Employee participation in decision making and organizational productivity: Case study of cross river state board of internal revenue, Calabar, IIARD International Journal of Economics and Business Management 5(1),
Farah, M. & Nina, S. (2016). Factors Affecting Profitability of Small Medium Enterprises (SMEs) Firm Listed in Indonesia Stock Exchange. Journal of Economics, Business and Management, 4(2), 132-137
Fashoyin, T. (1992). Industrial Relations and African Development. New Delhi: South Asian Publishing Ltd.
Gollan, P. J., & Wilkinson, A. (2007). Contemporary developments in information and consultation. The International Journal of Human Resource Management, 18(7), 1133-1144.
Greenberg, J. (2011). Behavior in Organizations, 10th ed., New Jersey: Upper Saddle River, Prentice Hall.
https://www.washington.edu/admin/hr/pod/leaders/orgdev/alliance/articles/EmployeeInvolvement-ScontrinoPowell.pdf.
Irawanto, W. D., (2015), Employee Participation in Decision-Making: Evidence from a State-owned Enterprise in INDONESIA, Faculty of Economics and Business, Management Department, Jl. M.T. Haryono No. 165, Malang, 65145 East Java, Indonesia, Phone +62 81353238012, Email: dodi.wi@ub.ac.id.
Isichei, E. E., & Godwin, U. D. (2015). Employees’ participation in decision making and the hospitality industry in Nigeria, An investigative study of selected hotels in the federal capital territory, Abuja, Nigeria, Academic Journal of Economic Studies, 1(4), 54–60.
Kim, J., MacDuffie, J. P., & Pil, F. K. (2010). Employee voice and organizational performance: Team versus representative influence. Human Relations, 63(3), 371-394.
Lebans, M., Euske, K. (2006), “A conceptual and operational delineation of performance”, Business Performance Measurement, Cambridge University Press
Leonard B. D. (1995) Welt springs of Knowtedge: Building and Sustaining the Sources of Innovation. Boston: Harvard Business School Press.
Locke, E.A., & Schweiger, D.M. (1997). Participation in decision-making: One more look. Research in Organizational Behaviour, 1: 265-339.
Marchington, M. (1980). Responses to Participation at Work: A Study of the Attitudes and Behaviour of Employees, Shop Stewards and Managers in a Manufacturing Company.
McKeen, J. D., Zack, M. H., & Singh, S. (2006). Knowledge management and organizational performance: An exploratory survey. In Proceedings of the 39th annual Hawaii international conference on systems sciences, 1–9
Moorhead, G., & Grifcin, R. (2004). Organizational Behavior: Managing People and Organisations, (7th ed.). Boston: Houghton Mifflin Company.
Muya, T.W. & Gathogo, G. (2016). Effect of Working Capital Management on The Profitability of Manufacturing Firms In Nakuru Town, Kenya. International Journal of Economics, Commerce and Management,1 (4), 1082-1105
Niresh, J. Aloy and Velnampy, T. (2014), Firm Size and Profitability: A Study of Listed Manufacturing Firms in Sri Lanka. International Journal of Business and Management, 9, 57-64.
Noah, Y. (2008). A study of worker participation in management within selected establishments in Lagos, Nigeria. Journal of Social Sciences, 17(1), 31-39.
Nuzhath K. (2014), Employee participation and its impact on their Performance. Conference Paper 11,656 Reads DOI: 10.13140/RG.2.1.3044.3364
Ofoegbu E.O, Akanbi, P.A & Joseph, A.T (2013). Effect of contextual factors on the performance of SMEs in Nigeria: A case study of Ilorin metropolis. Advance in management and applied economics. 3(1), 95-114.
Ogbadu, E. E. (2009). Profitability through Effective Management of Materials. Journal of Economics and International Finance, 1(4), 99-105.
Ojokuku, R. M. and Sajuyigbe, A. S. (2014), Examined effect of employee participation in decision making on performance of selected small and medium scale enterprises in Lagos, Nigeria, European Journal of Business and Management 6(10).
Olowe F.T, Moradeyo O.A & Babalola O.A, (2013). Empirical study of the impact of microfinance bank on small and medium growth in Nigeria. International Journal of Academic Research in Economics and Management Sciences, 2 (6), 116 -127.
Richard, P. J., Devinney, T. M., Yip, G.S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.
Sarkissian, S., & Schill, M.(2010). Cross-listing waves. Munich Personal RePEc Archive, Paper No. 27545. Retrieved from http://mpra.ub.uni-muenchen.de/27545
Sashkin, M. (1976). Changing toward participative management approaches: A model and methods. Academy of Management Review. 75–86.
Schnaars, S. P. (1994).Managing imitation strategies: How late entrants seize marketing from pioneers. New York: The Free Press
Schreibfeder, J. (2006). Inventory Management: Analyzing Inventory to Maximize Profitability. Effective Inventory Management, Inc.
Sofijanova, E., & Chatleska, V. Z. (2013). Employee involvement and organizational performance: Evidence from manufacturing sector in republic of Macedonia. Trakia Journal of Science, 11(1), 31-36.
Somech, (2002) Explicating the complexity of participative management: An investigation of multiple dimensions. Education Administration Quartll: 341-371.
Stierwald, A. (2010). Determinants of Profitability: An Analysis of Large Australian Firms. Melbourne Institute Working Paper 3/10 .Available at SSRN: https://ssrn.com/abstract=1632749 or http://dx.doi.org/10.2139/ssrn.1632749
Vera, D., and Crossan, M. (2003) "Organizational learning and knowledge management: Toward an integrative framework," In The Blackwell handbook of organizational learning and knowledge management, M. Easterby-Smith and M. A. Lyles (eds.), Blackwell Publishing, Oxford, UK.
Vrba, M. J., & Brevis, T. (2002). “A Guide to Passing: General Management”. Claremont: New Africa Education.
Westhuizen, D. (2010). Culture, participative decision making and job satisfaction. Economic and Industrial Democracy 31 (3), 285-305.
DOI: http://dx.doi.org/10.61426/sjbcm.v8i2.2019
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.