Management Studies and Economic Systems (MSES), 4 (1), 57-70, Winter 2019
© ZARSMI
Participative Decision Making and Employee Performance in the
Hospitality Industry: A Study of Selected Hotels in
Owerri Metropolis, Imo State
*1
1 Department
2,3
Kelechi E. Ugwu, 2 Lazarus I. Okoroji, 3 Ebere Oluchi Chukwu
of Management Technology, Federal University of Technology, Owerri, Imo State, Nigeria
Department of Transport Management, School of Management Technology, Federal University of Technology,
Owerri, Imo State, Nigeria
Received 08 January 2018, Accepted 25 January 2018
ABSTRACT:
This study investigated the extent of the relationship between participative decision making and employee
performance in selected hotels in Owerri, Imo State, Nigeria. The specific objective determined the relationship
between leader behavior and employee commitment. Descriptive survey and questionnaire was adopted as
instrument for data collection. The total population of the study comprised of 92 people. Simple random
technique was adopted in distributing the questionnaire to the target audience. The hypotheses were tested and
analyzed using Pearson Product Moment Coefficient to test the relationship between leader behavior and
employee commitment. Findings showed that there is a positive relationship between leader behavior and
employee commitment in the selected hotels in Owerri, Imo State. The following recommendations were made. It
is advisable for organizations to integrate management by objective (MBO) at every level of the organization to
promote high productivity in the workplace. Finally, organizations are encouraged to increase the frequency and
level of worker participation in decision making between manager and subordinates.
Keywords: Participative decision making, Employee performance, Leader behavior, Employee commitment,
Organizational structure
INTRODUCTION
Most organizations have realized the importance
of supporting their employee involvement in
every type and level of work activities.
Therefore, that of hospitality industries in
Owerri, Nigeria cannot be overemphasized.
Most hotels in the country have realized the
importance of motivating and supporting their
employees to participate in decision making
process to encourage their commitment in
promoting organizational performance. The
hotel industries are instrumental for providing
quality services to sustain their customers’
satisfaction and self fulfillment. Employees are
*Corresponding Author, Email: nzeribe20@yahoo.com
known for idea generation, their feedback and
ideas are central in creating sustainable
customers value as well as improving
organizational commitment. Apart from
hospitality industries, other firms in similar line
of industry have equally followed suit in
allowing their employees to take part in decision
making process to improve their level of work
commitment in order to remain active in
business. However, participative decision
making has been considered as a managerial tool
to promote organizational commitment aimed to
improve its performance. Participative decision
Kelechi E. Ugwu et al.
making therefore contributes to the overall wellbeing of the organization (Management Study
Guide, MSG, 2016).
In many organizations today, the decision
making power depends on the degree of
autonomy built into particular jobs. These offers
employees the opportunity to make suggestions
and recommendations required to improve
organizational commitment towards achieving
its goals. Employee involvement in decision
making has both positive and negative influence
on organizational performance. A recent study
by Kuye and Sulaimon (2011) noted that, firms
who supports employee involvement in decision
making outperforms better than its rivals. The
authors opine that employee involvement in
decision
making
enhances
employee
commitment to strive towards increase
organizational productivity. Related to this,
Williamson (2008) also concur that employee
participation in decision making gives
employees the opportunity to develop skills and
technical know-how required to achieve high
productivity. It also helps to boost employee
morale, confidence which leads to high
creativity, commitment and job satisfaction in
the place of work.
MSG (2016) also concur that, employee
participation in decision making helps to
improve the level of employee satisfaction,
commitment, morale, support and inefficiency
in the work place. When people see that their
suggestions
and
recommendations
are
implemented or put into practice, they feel
motivated to strive towards doing more in the
future. Psychologically, such individuals are
considered as an integral part of the organization
and viewed him or herself as a valued employee
rather than a redundant worker.
In view of the above, Helms (2006) concur
that workers who partake in the decisions of
their
organization
consider
themselves
fundamentally useful to their industry and
believe to have good sense of belongingness in
their place of work. Allowing employees
participate in decision making process is
important in closing the gaps that exists between
employees and management.
However, the benefits of participatory
decision making undoubtedly exceed the cost.
Conversely, participatory decision making
influences organizational performance. One of
the problems associated with it is that, it slows
down decisions because so many people are
involved in decision making process. Several
inputs and feedbacks offered by many people
make it difficult to choose the best alternative
among many suggestions (MSG, 2016).
Though, it takes time and energy to verify the
accuracy of information when so many people
are involved which may lead to delay in decision
making process.
In addition, participative
approach to decision making is inappropriate
when choices are complex, difficult to define,
when task independence is very high and when
organizational change is high (Kuye and
Sulaimon, 2011).
According to Noah (2008), Participative
Decision Making is a special form of delegation
in which employees gain greater power in
making decisions or choices with respect to
bridging the communication gap that exist
between the management and the workers. It is a
degree of autonomy where employees involve in
organizational activities such as planning,
directing
among
others
to
promote
organizational commitment and productivity.
Participative decision making is the same thing
as employee involvement in decision making.
In addition, Probst (2005) defines
Participative Decision Making (PDM) as the
degree to which employers support and allow
employees to partake or participate in
organizational
decision-making
process.
According to the authors’ point of view,
employees are central to idea generation and
participatory decision making increases their
commitment, drive and enthusiasm on the job
which leads to high productivity. Again,
employees are expected to use their knowledge
to produce practical and acceptable solutions on
time especially on procedural issues that affects
the organization. On the other hand,
participatory decision making allows workers to
constantly seek new ideas from different setting
to
improve
organizational
wellbeing.
Participatory decision making is linked to
employee performance.
Kroll (2006) defined employee performance
as a measure of efficiency and effectiveness of
employee relative to their job. Efficiency refers
to getting the most output from the least amount
of inputs. Efficiency focused on doing things
right, that is, not wasting resources. On the other
58
Manag. Stud. Econ. Syst., 4 (1), 57-70, Winter 2019
hand, effectiveness refers to doing the right
thing. It is primary concerned with performing
activities to promote organization’s goals
(Robbins and Coulter, 2013). Effectiveness
focuses on goal attainment and high attainment.
Statement Problem
In ideal situation, employees are known for
idea generation and participatory decision
making boost their commitment, spirit and
enthusiasm
to
promote
organizational
productivity. Organization performance is
achieved through concerted efforts of committed
employees who review and embrace the
organization’s mission and direct their actions
towards promoting its goal. Again, management
support and organizational structure influences
employee commitment either positively or
negatively.
Conversely, organizational ability to support
employee participation in decision making has
positive influence on productivity. In practice,
inadequate support of management to encourage
workers participation in decision making has
adverse influence on organizational productivity.
When staff members are not supported or
motivated to partake in decision making process
their commitment, morale and enthusiasm on the
job will drop which leads to lower productivity.
It is advisable for organizations to integrate
management by objective (MBO) at every level
of the organization to promote high productivity
in the workplace. Based on the above problem
statement, objective of study is necessitated
below.
Objective of Study
The broad objective of this study is to
investigate the extent of the relationship that
exist between participative decision making and
employee performance in selected hotels in
Owerri, Imo State. Participative decision making
is decomposed into; management support and
organizational structure; while employee
performance is decomposed into; employee
commitment and job satisfaction. Participative
decision
making
is
the
independent
(explanatory)
variable;
while
employee
performance is the dependent (constant)
variable. Management support is proxy for
participative
decision
making;
while
commitment is proxy for employee performance.
The following specific objectives were
drawn from the above driver variables
(independent and dependent):
I.
To determine the extent of the
relationship that exists between leader behavior
and employee commitment of selected hotels in
Owerri, Imo State, Nigeria.
Research Question
I.
To what extent does leader behavior
influences employee commitment of selected
hotels in Owerri, Imo State, Nigeria?
Research Hypotheses
I.
H01: There is no strong positive
relationship between leader behavior and
employee commitment in the selected hotels in
Owerri State, Nigeria.
II.
Ha1: There is a strong positive
relationship between leader behavior and
employee commitment in the selected hotels in
Owerri, Imo State, Nigeria.
Significance of Study
The outcome of this study can be useful to
those organization facing challenges of
participative decision making and employee
performance. Again, the findings of this study
will contribute to existing knowledge in the area
of study as well as bridging the gap that exist in
the field of study.
Scope and Limitation of Study
This study focused on Participative Decision
Making and Employee Performance in the
Hospitality Industry in Owerri, Imo State. The
selected hotels are listed as: Rock View, Disney,
Cubana, Newton and City Global LTD. The
choice of these hotels was made because of its
relevance and potential to their target customers.
Owerri metropolis is known for a city of
hospitality and these hotels offer an attractive
place for this research. These organizations
accelerate economic development of Imo State.
The geographic coverage and scope of this study
is therefore delimited.
Definition of Key Terms
Participative Decision Making is concerned
with leader behavior in involving their
employees in making decision.
59
Kelechi E. Ugwu et al.
Employee Performance is a measure of
efficiency and effectiveness of employee relative
to their job.
Leader Behavior deals with leadership
approach and behavior that focus on getting job
done or keeping their follower happy.
Employee Commitment refers to effort that
employee put on accomplishing work task on time.
Organizational Structure refers to the chain
of command or span of control that flows from
top management to lower management and
between superiors to subordinates.
Literature Review
Definition of Participative Decision Making
Participative Decision Making means
employee participation in decision making. Both
are used interchangeable in this paper.
Employee Participation or Involvement is
defined as a process of involving and
empowering employees to use their input
towards creating value and improving
organizational performance (Sofijanova and
Chatleska, 2013). Employee Participation also
mean direct involvement or engagement of
employees towards applying ideas, expertise,
and efforts in solving organizational problems
and achieving its goals or objectives (Bullock
and Powell, N.Y).
Similarly, Westhuizen (2010:11) also defines
employee participation as the totality of forms,
that is direct or indirect involvement of
individuals and groups to contribute to the
decision making process. On the other hand,
Beardwell and Claydon (2007) defined
employee participation as the distribution of
power between employer and employee in
decision making processes, either through direct
or indirect involvement. In addition, employee
participation
also
refers
to
employee
involvement in decision making at the
workplace (Busck, Knudsen and Lind, 2010).
Employee
Participation
represents
the
combination of task-related practices, which aim
at maximizing employee sense of involvement in
their work place and their commitment to the
wider organization (Bhatti and Nawab 2011).
In attempt to define the above concepts
different authors or researchers have defined it
differently making it to be more multifaceted to
understand. However, the views of Sofijanova
and Chatleska (2013) are considered the best
among other authors because its definition suits
the objective of the study. Due to this reason, the
researchers have decided to adopt this definition
throughout this paper.
Bhatti and Nawab (2011) have identified that
decision making make can be daily, weekly,
monthly or annually depending on the
importance or need in any organization. The
authors argue that in some firms, decision
making ability is either centralize on the top
level of management or decentralize across
levels of management. Managers at all levels
and in all areas of organizations make decision.
For instance, top level managers make decisions
about their organizations goals, where to locate
manufacturing facilities, or what new markets to
move into. Middle and lower level managers
make decisions about production schedules,
product quality problems, pay raises, and
employee discipline. Making decision making is
not the task of managers alone; all organizational
members make decisions that affect their jobs
and the organization they work for (Minter,
2010; Garvin and Roberto, 2001).
Decision is a choice among two or more
alternatives (Minter, 2010). Decision making is
the process of choosing among two or more
alternatives with the intention of solving a
problem or making the best use of an
opportunity (Kreitner, 2004). The author stresses
that in most organization, decision making
depends on the degree of autonomy built into
particular jobs. Employees within any
organizations react promptly in taking decision
if they have freedom to do that that. Decisions
are usually made to either to solve problems or
to utilize an opportunity. Employee participation
in decision making can save the organization
from deteriorating or falling into danger.
Decision making is defined as a process of
making a choice from a number of alternatives
to achieve a desired result (Eisenfuhr, 2011).
Stoner, Freeman, and Gilbert (1995:239) defined
decision making as a process of identifying and
selecting a course of action to deal with a
specific problem or take advantage of an
opportunity. According to Hellriegel, Jackson
and Slocum (2005: 208) decision making
include the following; problem identification,
information gathering, developing alternatives,
analyzing alternative and identifying decision
criteria.
60
Manag. Stud. Econ. Syst., 4 (1), 57-70, Winter 2019
On the other hand, Vrba and Brevis, (2002)
also defined decision making as the process of
selecting an alternative course to solve a
problem. Decision making involves “mapping
the likely consequences of decisions, working
out the importance of individual factors, and
choosing the best course of action to take”
(Muindi, 2011). Moorhead and Griffin, (2004)
also argue that it is a method of choosing
between alternatives. Related to this, Greenberg
(2011) argues that decision making is sometimes
difficult for both individual and group, though
the outcome depends on organizations, where
the stakes are considerable and the impact is
widespread.
Participative Decision Making Indicator
Participative Decision Making concerned
with leader behavior that managers perform in
involving their employees in making decision
(Wagner, 1994, p. 312-330). It is deals with
shared decision making in the work environment
between managers and subordinates. It explains
how businesses can improve their performance
by cultivating employee interest and dedication
(Cotton,
1993).
Employee
participation
indicators include the following; leader
behavior,
employee
commitment
and
organizational structure.
Leader Behavior
It explains leadership approach and behavior
that focus on getting job done or keeping their
follower happy (Goleman, 2000). According the
author, leaders involve their employees in
decision making.
Leaders make decisions
autocratically or democratically. Autocratic
leadership makes decisions and announces them
to the group.
Democratic leadership seek information,
opinions and preferences, sometimes to the point
of meeting with the group, leading decisions,
and using consensus or majority vote to make
the final choice. Democratic leadership
accommodates employees and involves them in
decision making. Employees are empowered to
make contributions and suggestions concerning
the organizational welfare. Worker talk freely
with their boss about goals and they are trusted
to use good judgment in decision making
(Bureau of Business Research, 2017).
Democratic leader behavior influences positively
employee commitment towards bring out their
effectiveness in doing good work that promotes
organizational performance.
Organizational Structure
Organizational structure is defined as the
formal line of authority or decision that flows
from top management level to lower
management level. It is a framework by which
job tasks or assignments are divided, grouped
and coordinated among organizational members.
It is in the manner in which various sub-units are
arranged and interrelated with one another
(Chiekezie, Nzewi and Orogbu, 2008).
Organizational structure refers to the formal
configuration between individuals and groups
regarding the allocation of tasks, responsibilities,
and authority within the organization (Galbraith,
1987; Greenberg, 2011).
Organizations exist to achieve its business
goals. These goals are broken down into tasks or
function required for the job and it is usually
grouped into departments. Most departments in
some organizations are grouped into; marketing,
sales, advertising, manufacturing, human
resource, among others. Within each department,
even more distinctions are found between the
jobs people perform. Departments are linked to
form the organizational structure. The
organization’s structure gives it the form to
fulfill its function in the environment (Nelson
and Quick, 2011).
Employee Performance Indicator
Performance deals with the ability to achieve
predetermined goals using people in an efficient
and effective manner (Alexandra, 2013). It
comprises the actual output or results of an
employee as measured against its intended
outputs or goals (Richard, Devinney, Yip, and
Johnson, 2009). Employee performance is a
measure of employee effectiveness and efficient
relative to output. It is measures the following
indicators; commitment and job satisfaction.
Employee Commitment
Organizational performance is achieved
through
committed
employees.
Again,
committed employees review and embrace the
organization’s mission and direct their actions
towards promoting its goals (Robbins & Coulter,
2013; Galford and Seibold, 2002). Committed
61
Kelechi E. Ugwu et al.
employees are goal oriented and derive joy in
pursing
organizational
objectives
and
accomplishing it. On the other hand, Kaneshiron
(2008) opines that employee commitment can
lead to useful outcomes as increasing the
effectiveness, efficiency and productivity of the
organization.
Employee Commitment is defined as a sense
of duty or effort that employee put on
accomplishing work task (Manning & Curtis,
2009). It refers to a pledge or promise that binds
employee with others on accomplishing work
task.
Employee commitment is important
because high levels of commitment lead to
organizational performances. It reflects the
extent to which employee identify organizational
goals and promote it effectively. Committed
employee works joyfully towards achieving
organizational objectives. A study of about 30
prosperous firms in USA showed that employee
commitment has significant positive effect on
organizational performance. High level of
employee commitment increases organizational
performance and productivity. It is therefore
advisable for organizational leaders to create a
positive work culture and climate to encourage
employee commitment to promote firm
productivity.
German workers, and 72 percent of workers in
Great Britain say they are satisfied with their
jobs (Harris, 2007; Swiss, 2005). On the other
hand, 60 percent of Canadian workers report
being satisfied with their jobs, while 60 percent
of Asian Pacific employees are satisfied
(Watson, 2006). In Nigeria, 58 percent of
workers report that they are satisfied with their
job.
Forms of Participative Decision Making
According to Sagie and Aycan (2003) has
identified four categories of participative
decision making in the following; face-face,
collective, pseudo and paternalistic participative
decision making.
Face-Face Participative Decision Making: It
involves employee direct interaction with the
superiors in the decision making process. Again
employees who possessed needed knowledge
and information are involved in the decision
making process.
Collective Participative Decision Making: It
involves employee indirect involvement in the
decision making process through representative
such as consultative committees and work
councils or trade unions.
Job Satisfaction
Griffin and Lopez (2005) defines job
satisfaction as employee general attitude towards
his or her job. It is an attitude rather than
behavior. It is an outcome that concern with
employees because satisfied workers are more
likely to show up for work, have higher attitude
for work and higher levels of performance
compared to dissatisfied workers. However,
dissatisfied workers have lower attitude for
work, lower level of performance and high level
of absenteeism (Robbins and Coulter, 2013). Job
satisfaction improves employee motivation to
take initiative and lower absenteeism rate and
turnover rate.
A six nation survey on job satisfaction using
European workers showed level of variations on
employee satisfaction. For instance, 68 percent
of Scandinavian workers, 67 percent of Italian
workers, and 63 percent of Swiss workers report
being satisfied with their jobs. Other numbers
from Europe are somewhat higher. For example,
80 percent of workers in France, 73 percent of
Paternalistic Participative Decision Making: It
represents a relationship between a superior and
subordinate in form of fatherly to child
participation. As the name sounds, the superior
is expected to know what is best for the
subordinates and provide it.
Pseudo
Participative
Decision
Making:
Superiors pretend not to know what is best for
the subordinates. It is a form of relationship that
develops in a high individualist and high power
culture (Sagie and Aycan, 2003).
Theoretical Framework
This study is anchored on Goal Setting
Theory (GST) postulated by Edwin Locke
(1968). The theory states that individuals are
motivated to work towards attainment of predetermined goals or objectives they set for
themselves or they are part of. By being part of
the whole process, people understand what are
involved and strive towards accomplishing the
62
Manag. Stud. Econ. Syst., 4 (1), 57-70, Winter 2019
goals. The theory is linked to participative
decision making and employee performance.
GST explains how people are motivated to work
for the goals they participate in setting together.
Goal Setting Theory resembles Management by
Objective (MBO) on the ground that when goals
are verified, feedback on performance is given;
chances of improvement are also increased. The
managerial implication for this theory is that job
responsibilities and roles of employee should be
designed in such a way to give them access to
job autonomy which will increase their
commitment, morale and level of satisfaction to
accomplish pre-determined goals or objectives.
Empirical Review
Several researchers have investigated the
relationship between participative decision
making and employee performance in both
private and public sector organizations with
different findings. This has generated both
positive and negative arguments in the literature.
Some of these studies conducted from different
parts of the world, including Nigeria are
reviewed below.
Rehman, Khalid and Khan (2012) studied the
impact of Employee Decision Making Styles on
Organizational Performance in Banks in
Pakistan. The study adopted descriptive
approach and questionnaire as instrument for
data collection. The population of the study
consists of 151 branches of all public and private
limited banks in Gujranwala city of Pakistan.
The sample size was determined statistically.
Random sampling techniques were applied in
data collection using the banking industry. The
target population consists of 16% top level
managers, 59% of middle level managers and,
25% of low level managers respectively. Data
were tested statistically using regression
technique to compare the relationship between
employee decision making and organizational
performance in public and private sector banks.
Findings showed that employee decision making
rational
have
positive
influence
on
organizational performance. Study of Rehman,
Khalid and Khan (2012) and present study are
similar as both focused on organizational
performance and adopted descriptive survey
design and questionnaire as instrument for data
collection. However, the difference between
earlier study and present study is that the
industry of study and area of study are not the
same. However, the study of Rehman, Khalid
and Khan (2012) was limited to corporate
organizations (Banks) in Pakistan, while present
study is limited to transport sector organization.
Previous study did not determine the extent to
which leader behavior influences employee
commitment in the hospitality industry in
Owerri, Imo State. This is the gap, present study
intents to fill.
Similarly, Kesenwa, Oima and Oginda
(2013) researched on effect of Strategic Decision
Making on Firms Performance using four
selected firms in Kenya. The selected
organizations include Safaricom M-PESA, Airtel
Money, Orange Money and Essaryu cash Plc.
Study adopted descriptive survey approach and
secondary data as instrument for data collection.
Secondary data were employed to calculate the
firms’ liquidity ratio and profitability ratio to
measure the performance for the firms. Findings
showed that there is a significant positive
relationship between decision making and
organizational performance. Study of Kesenwa
et al. (2013) and present study are similar as
both focused on decision making and
organizational performance. However, the
difference between study already done and
present study is that both studies adopted
different industries to achieve research objective.
Again, area of study and driver variable of study
are not the same. Conversely, the study of
Kesenwa et al. (2013) did not determine the
extent to which leader behavior influences
employee commitment in the hospitality industry
in Owerri, Imo State. This is the gap, present
study intents to fill.
Again, Wainaina, Iravo and Waititu (2014),
examined the effect of Employee Participation in
Decision
Making
on
Organizational
Commitment in the Private and Public
Universities in Kenya. The target population
comprised of academic staff of the university.
Descriptive research design and questionnaire
was adopted as instrument of data collection.
Out of 347 questionnaires were administered to
sixteen selected universities in Kenya, only 282
questionnaires were returned in good faith, while
the remaining 65 were not returned. The study
found that employee participation in decision
making significantly influence university
academic staffs’ organizational commitment in
63
Kelechi E. Ugwu et al.
Kenya. Study of Wainaina et al. (2014) and
present study are similar as both focused on
decision
making
and
organizational
commitment. However, the difference between
study already done and present study is that both
studies adopted different industries to achieve
research objective. Again, area of study and
driver variable of study are not the same.
Conversely, the study of Wainaina et al. (2014)
did not determine the extent to which leader
behavior influences employee commitment in
the hospitality industry in Owerri, Imo State.
This is the gap, present study intents to fill.
Kuye and Sulaimon (2011) studied the
relationship between Employee Involvement in
Decision Making and Firms Performance in the
Manufacturing Sector in Nigeria. This study
employed descriptive survey design and
questionnaire as instrument for data collection.
The results of the study showed a positive
significant relationship between employee
involvement in decision making and firms’
performance. Work already done by Kuye and
Sulaimon (2011) and present study are similar as
both focused on employee involvement in
decision
making
and
organizational
commitment. However, the difference between
study already done and present study is that both
studies adopted different industries to achieve
research objective. Again, area of study and
driver variable of study are not the same.
Conversely, the study of Kuye and Sulaimon
(2011) did not determine the extent to which
leader behavior influences employee commitment
in the hospitality industry in Owerri, Imo State.
This is the gap, present study intents to fill.
Isichei and Godwin (2015) investigated
Employee Participation in Decision Making and
the Performance of the Hospitality industry in
Nigeria, a study of selected hotels in the Federal
Capital Territory in Abuja. Descriptive survey
approach and questionnaire was used as
instrument for data collection. Findings showed
that there is a positive relationship between
extent of employee participation in decision
making and organizational performance. Work
already done by Isichei and Godwin (2015) and
present study are similar as both focused on
employee participation in decision making and
organizational performance. Both studies
adopted the same industry (hospitality) to
achieve research objectives. The difference
between work already done and present study is
that the area of study and driver variable of study
are not the same. Conversely, the study of
Isichei and Godwin (2015) did not determine the
extent to which leader behavior influences
employee commitment in the hospitality industry
in Owerri, Imo State. This is the gap, present
study intents to fill.
Omobude and Igbudu (2012) wrote on
Teachers Participation in Decision Making
Process and Job Performances in Oredo Local
Government Area of Edo State, Nigeria. The
study found that teachers participation in
decision making influence positively job
performance. Work already done by Omobude
and Igbudu (2012) and present study are similar
as both focused on employee participation in
decision
making
and
organizational
performance. However, the difference between
work already done and present study is that
industry of study and area of study are different.
Again, the driver variables of both studies are
not the same. Conversely, the study of Omobude
and Igbudu (2012) did not determine the extent
to which leader behavior influences employee
commitment in the hospitality industry in
Owerri, Imo State. This is the gap, present study
intents to fill.
Zubair, Bashir, Abrar, Baig and Hassan
(2015) also investigated Employee Participation
in
Decision
Making
and
Manager’s
Encouragement of Creativity in…. The study
employed descriptive survey method and
questionnaire as instrument for data collection.
Out of 240 questionnaires distributed to the
participants of the organization, only 206 were
returned and used for the study while the
remaining 34 were not returned. The findings
found that there is positive relationship between
employee participation in decision making and
managers’ encouragement of creativity. Work
already done by Zubair et al. (2015) and present
study are similar as both focused on employee
participation. However, the difference between
work already done and present study is that
industry of study, area of study and driver
variables of study are different. Conversely, the
study of Zubair et al. (2015) did not determine
the extent to which leader behavior influences
employee commitment in the hospitality industry
in Owerri, Imo State. This is the gap, present
study intents to fill.
64
Manag. Stud. Econ. Syst., 4 (1), 57-70, Winter 2019
Data Collection Method
RESEARCH METHOD
Research Design
The study objective focused on Participative
Decision Making and Employee Performance in
selected hotels in Owerri, Imo State, Nigeria. To
achieve study objective, descriptive survey
design is adopted. The reason is to allow
researchers investigate what is already into
existence and to observe what others have
studied before.
Population of the study
The study population involved all the
supervisors and managers of the selected
hospitality firms in Owerri, Imo State. They five
hotels include the followings: Rock View hotel,
Disney hotel, Cubana hotel, Newton hotel and
City Global hotel LTD. The whole hotels in
Owerri metropolis will be difficult to study due
to cost implications involved in moving from
one location to another. In order to make study
research orientated the best thing was to select a
sample population that represent the entire
population. The criteria for choosing these hotels
were based on their relevance and reputation to
their target customers that is; they ranked the
biggest and most popular hotels in Owerri
metropolis. The above criteria motivated the
researchers in choosing them among others
hotels in achieving research problems and study
objectives vis-à-vis. Their population figure was
given in table 1:
Table 1 shows the number of employees in
the selected branch of the organizations. They
have a combined figure of ninety two (92) staff.
Data for the research was collected from
primary source. Questionnaire was adopted as
instrument for data collection. 92 copies of a
structured questionnaire were administered, and
the participants were placed on objective
response for each statement on a five point likert
scale. The response scoring weights represent
the following; Strongly Agree- 5 points, Agree4 points, Undecided/Neutral-3 points, Disagree2 points, and Strongly Disagree-1 point. The
hypotheses were tested statistically using T-test
and data were analyzed using ANOVA with the
aid of SPSS software.
Validity of the Instrument
The Participative Decision Making and
Employee Performance questionnaire was given
to experts in Management Department, Federal
University of Technology, Owerri Imo State for
critical examination. They were requested to
scrutinize the items of the instrument in relation
to the research objectives and ascertain if the
items had face and content validity. They were
also requested to make their recommendations as
to the suitability of the instrument. Based on
their scrutiny and suggestions, 12 items were
modified and reduced to 8 for trial testing.
The validity of the instrument was performed
on the surface level using face validity. This
helped the researcher to evaluate whether or not
the conceptual variables were properly measured
at the face or surface value. For the purpose of
this study, face validity were performed with the
help of an expert who read through the
questionnaire and offered corrections.
Sample Size and Sampling Technique
Reliability of the Instrument
Since the population of the study is not too
large, study adopts complete enumeration-based
method. Most populations about which
inferences must be made are usually quite large.
Given the above reasons, the sample size cannot
be statistically determined using TaroYamene
formula. Simple random technique was adopted
in distributing the questionnaire to the target
audience using the selected hotels. A simple
random sampling technique allows each unit in
the population an equal chance of being selected
and represented in the survey and it is free from
sampling bias.
Trial testing was conducted to test the
appropriateness of the instrument with a sample
of 4 participants of the selected hotels. The
questionnaire was tried on sample similar to the
one under study but was not included in the
study. The data obtained from the trial testing of
the instrument were used to determine its
reliability. The split-half method was applied
whereby the reliability of test ratings was
calculated from a single administration of a test.
The data collected was analyzed using
Cronbach’s Coefficient Alpha method.
An instrument is reliable when it gives a
65
Kelechi E. Ugwu et al.
consistent result when repeated under similar
conditions by different researchers. Cronbach’s
alpha was used to investigate the reliability of
test results in this study. Again, when alpha test
result ranges between the level of 0.60 and
above, such result is considered acceptable as
suggested by (Cronbach, 1979). Since the alpha
test score of 0.876 is greater than 0.60, the
instrument is reliable (table 2).
Table 1: Population of the study
Names of Hotels
Locations/Branch
Population
Rock View
Okigwe Road Owerri
26
Disney
Onitsha Road Owerri
14
Cubana
World Bank Road Owerri
17
City Global
Portharcourt Road Owerri
23
Newton
Hospital Road Owerri
12
92
Total
Source: (Field Survey, 2017).
Table 2: Reliability test result
Cronbach’s Alpa
No of Item
0.876
2
Source: (SPSS Version 20).
Table 3: Schedule of questionnaire administered and returned for selected hotels
(Rock View, Disney, Cubana, Newton and City Global LTD)
Item
Frequency
% of Questionnaire
Returned Questionnaire
85
92.39
Unreturned Questionnaire
7
7.60
Total number of Questionnaire Administered
92
100
Source: (Field Survey 2017).
66
Manag. Stud. Econ. Syst., 4 (1), 57-70, Winter 2019
Method of Data Analysis
In rejecting the null hypotheses, it shows that
there exists no significant relationship between
independent and dependent variables. In
accepting the alternate hypotheses, it shows that
that exist strong significant relationship between
independent and dependent variables (tables 3
and 4).
The data used in answering the research
questions and testing of the hypotheses were
obtained from the responses from Participative
Decision Making and Employee Performance of
Selected Hotels in Owerri, Imo State. Data for
research question one were analyzed using
Pearson
Product
Moment
Correlation
Coefficient to; determine the extent of the
relationship between leader behavior and
employee commitment. Reject the null
hypotheses when the p-value is less than the
critical value at 0.01 level of significance,
otherwise accept the alternate hypothesis.
Data Presentation and Analysis of Result
Data Presentation
Research Question One
To what extent does leader behavior
influences employee commitment of selected
hotels in Owerri, Imo State, Nigeria?
Table 4: Frequency distribution of questionnaire responses for selected hotels
S/N
Participative Decision Making
SA
AG
UN
DA
SD
TOTAL
A.
Leader Behavior
1.
I talk freely with my superior.
31
27
9
11
7
85
2.
My boss involves employees in decision making.
34
26
5
14
6
85
3.
In my organization, workers are empowered to make
contributions and suggestions concerning organizational
welfare.
29
33
12
3
8
85
4.
Workers are trusted to use good judgment in decision
making.
32
29
8
7
9
85
5.
In my workplace, staff are encouraged to get involved in
setting work goals.
39
30
2
6
8
85
6.
My boss rewards good ideas and suggestions offered by
employees.
41
32
1
4
7
85
B.
Employee Commitment
7.
I am proud to belong to my present organization and
committed to my job.
43
37
3
1
1
85
8.
The way my boss treat me influences my work performance.
38
41
2
3
1
85
9.
I wish to put extra effort if my boss empowered me to get
involved in setting work goals.
36
32
7
4
6
85
10.
I will go extra mile to achieve organizational objective if I
am trusted to make contributions and suggestions.
34
29
8
5
9
85
11.
If my organization recognizes my effort, I will put in my best
performance.
39
34
4
6
2
85
12.
I have good sense of belongingness in my present
organization and I will put much effort in promoting its
performance.
36
31
3
7
8
85
13.
I will work joyfully in achieving my organizational goal.
33
39
6
4
3
85
Employee Performance
Source: (Field Survey, 2017).
67
Kelechi E. Ugwu et al.
Table 5: Correlation matrix
Pearson Correlation
LB
EC
LB
EC
1
0.792**
Sig. (2-tailed)
0.000
N
85
85
Pearson Correlation
0.792**
1
Sig. (2-tailed)
0.000
N
85
85
Source: (SPSS Version 20)
**. Correlation is significant at the 0.01 level (2-tailed).
LB= Leader Behavior
EC= Employee Commitment
Test of Hypothesis
H01: There is no strong positive relationship
between leader behavior and employee
commitment in the selected hotels in Owerri
State, Nigeria.
Ha1: There is a strong positive relationship
between leader behavior and employee
commitment in the selected hotels in Owerri,
Imo State, Nigeria.
DISCUSSION
Table 5 shows Pearson Product Moment
Correlation Coefficient run to determine the
relationship between leadership behavior and
employee commitment. The result revealed a
significant positive relationship between the
dependent variable and independent variable.
The Pearson’s result was stated as follows (r =
0.792, N=85 and p= .000). Since the p-value
(0.000) was less than the 0.01 level of significant
at two-tailed test, the null hypothesis which
states that there is no positive relationship
between leader behavior and employee
commitment in the selected hotels in Owerri
State, is therefore rejected; while the alternate
hypothesis which states that there is a positive
relationship between leader behavior and
employee commitment in the selected hotels in
Owerri State, Nigeria, is therefore accepted.
Pearson Product Moment Correlation
Coefficient was sought to determine the extent
of the relationship between leaders behavior and
employee commitment. Independent variable
represents leader behavior while dependent
variable represents employee commitment. Since
the p-value (0.000) is less than the critical value
at the 0.01 level (2 tailed), the null hypothesis
which states that there is a positive significant
relationship between leader behavior and
employee commitment hypothesis was rejected.
This implies that, there is a positive relationship
between leader behavior and employee
commitment in the selected hotels in Owerri,
Imo State, Nigeria.
CONCLUSION
This study having investigated the extent of
the relationship between Participated Decision
Making and Employee Performance of Selected
Hotels in Owerri, established that, there is a
significant positive relationship between the
dependent variable and independent variables
(leader behavior and employee commitment).
Reflecting on the literature, Participative
Decision Making is the process of involving and
empowering employees to use their input
towards creating value and improving
organizational performance (Sofijanova &
Chatleska, 2013). This definition explains how
leader behavior promotes employee commitment
in decision making process. Leader behavior
therefore has positive influence on employee
commitment. The views of Sofijanova and
Chatleska (2013) agree with the findings.
68
Manag. Stud. Econ. Syst., 4 (1), 57-70, Winter 2019
RECOMMENDATIONS
The result of this study is suitable for any
kind of organization having great challenges on
employee participation in decision making.
Based on the conclusion, recommendations are
made as follows;
I.
It is advisable for organizations to
integrate management by objective (MBO) at
every level of the organization to promote high
productivity in the workplace
II.
Firms are advised to structure their
organization in such a way to allow free flow of
decision making at every level of management to
promote employee commitment in decision
making.
III.
Organizations are advised to put more
effort on encouraging their employees to come
up with suggestions and useful input that will
promote organizational performance.
IV.
Organizations are encouraged to
increase the frequency and level of worker
participation in decision making between
manager and subordinates.
REFERENCES
Alexandra, L. G. (2013). Organizational Learning and
Performance: Conceptual Model. Proceedings of
the 7th International Management Conference on
“New Management for the New Economy”.
November 7th- 8th, 2013, Bucharest, Romania.
Beardwell, J. and Claydon, T. (2007). Human
Resource Management: A Contemporary Approach,
(6th ed.), Harlow: Pearson Education.
Bhatti, K. and Nawab, S. (2011). Effect of Direct
Participation on Organizational Commitment.
International Journal of Business and Social
Science, 2 (9).
Bullock, R. and Powell, S. (N.Y). What is Employee
Involvement, University Consulting Alliance.
Available:https://www.washington.edu/admin/hr/po
d/leaders/orgdev/alliance/articles/EmployeeInvolve
ment-ScontrinoPowell.pdf.
Bureau of Business Research (2017). Leader Behavior
Description Questionnaire – Form XII Self. Ohio,
USA: State University of Columbus.
Busck, O, Knudsen, H. and Lind, J. (2010). The
Transformation of Employee Participation:
Consequences for the Work Environment.
Economic and Industrial Democracy, 31(3),
pp. 285-305.
Chiekezie, O. M., Nzewi, N. H. and Orogbu, O. L.
(2008). The Principles of Management, (1st ed.),
Anambra State, Nigeria: First Fountain Nigeria.
Cronbach. A. (1979). Reliability of the Instrument.
Cotton, J. L. (1993). Employee Involvement: Methods
for Improving Performance and Work Attitudes,
United State of America, CA: Thousand Oaks: Sage
Publications, Inc.
Eisenfuhr, F. (2011). Decision Making. Academy of
Management Review, 19 (2), pp. 312-330.
Muindi, F. K. (2011). The Relationship between
Participation in Decision making and Job
Satosfaction among Academic Staff in the School
of Business University of Nairobi. Journal of
Human Resource Management Research, 34.
Galbraith, J. R. (1987). Organization Design, In, J.
W. Lorsch, ed., Handbook of Organizational
Behavior, New Jersey: Englewood Cliffs, Prentice
Hall.
Galford, R. and Seibold, D. A. (2002). The Trusted
leader: Bringing Out the Best in Your People and
Your Company, the Free Press.
Garvin, D. A. and Roberto, M. A. (2001). What You
Don’t Know About Making Decisions. Harvard
Business Review, September, pp.108-116.
Greenberg, J. (2011). Behavior in Organizations,
(10th ed.), New Jersey: Upper Saddle River,
Prentice Hall.
Griffin, R. W. and Lopez, Y. P. (2005). Bad Behavior
in Organizations: A Review and Typology for
Future Research. Journal of Management,
December, pp. 988-1005.
Goleman, D. (2000). Leadership that Gets Results.
Harvard Business Review, pp. 78-90.
Harris Interactive (2007). Six Nation Survey Finds
Satisfaction with Current Job, Available:
www.harrisinteractive.com (October 9, 2007).
Helms, M. M. (2006). Theory X and Theory
Encyclopedia
of
Management
Education.
Available:http://www.enotes.com/managementency
clopedia/theory-x-theory-y%5 (December 7, 2017).
Hellriegel, D., Jackson, S. E. and Slocum, J. (2005).
Management, Cape Town: Oxford Edition.
Isichei, E. E. and Godwin, U. D. (2015). Employees’
Participation in Decision Making and the
Performance of 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), pp. 54–6.
Kaneshiro, P. (2008). Analyzing the Organizational
Justice, Trust and Commitment Relationship in a
Public Organization: Submitted to North Central
University, University, University Microfilms. The
Humanities and Social Sciences, pp. 14-20.
Kesenwa, A., Oima, O. D. and Oginda, M. (2013).
Effect of Strategic Decision Making on Firms
Performance: A Case Study of Safaricom Limited.
Nairobi, Kenya. International Journal of Business
and Social Science, 4 (13).
Kreitner, R. (2004). Management, (9th ed.), Boson:
Houghton Mifflin Company.
69
Kelechi E. Ugwu et al.
Kroll, K. M. (2006). Absence- Minded, CFO Human
Capital, pp. 12-14.
Kuye, L. O. and Sulaimon, A. H. A. (2011).
Employee Involvement in Decision Making and
Firms Performance in the Manufacturing Sector in
Nigeria. Serbian Journal of Management, 6 (1),
pp. 1–15.
Locke, E. (1968). Goal Setting Theory, Retrieved on
Available:http://web.utah.edu/basford/familyfinanc
e/documents/LockesGoalSettingTheory.docx
(January 6, 2018).
M.S.G, Management Study Guide (2016). Advantages
of
Participative
Management.
Available:
https://www.managementstudyguide.com/participat
ive-management-advantages-disadvantages.htm
(December 17, 2017).
Manning, G. and Curtis, K. (2009). The Art of
Leadership, (3rd ed.), New York: McGraw-Hill
Irwin.
Minter, S. (2010). The Season of Snap Judgment.
Industry Week, May, p. 6.
Moorhead, G. and Grifcin, R. (2004). Organizational
Behavior: Managing People and Organizations,
(7th ed.), Boston, USA: Houghton Mifflin Company.
Nelson, D. B. and Quick, J. C. (2011). Understanding
Organizational Behavior, Mason: South-Western
Cengage Learning.
Noah, Y. (2008). A Study of Worker Participation in
Management Decision Making Within Selected
Establishments in Lagos. Nigeria Journal of Social
Science, 17 (1), pp. 31-39.
Omobude, M. and Igbudu, U. (2012). Influence of
Teachers Participation in Decision Making on their
Job Performance in Public and Private Secondary
Schools in Oredo Local Government Area of Edo
State, Nigeria. European Journal of Business and
Social Sciences, 1 (5), pp. 12-22.
Probst, T. M. (2005). Considering the Negative
Effects of Job Insecurity through Participative
Decision Making: Lessons from the DemandControl Model. Journal of Occupational Health
Psychology, 10, pp. 320-329.
Rehman, R. R., Khalid, A. and Khan, M. (2012).
Impact of Employee Decision Style on
Organizational Performance: In the Moderating
Role of Emotional Intelligence. World Applied
Science Journal, 17 (10), pp. 1305-1315.
Richard, P. J., Devinney, T. M., Yip, G.S. and Johnson,
G. (2009). Measuring Organizational Performance:
Towards Methodological Best Practice. Journal of
Management, 35(3), pp. 718-804.
Robbins, S. P. and Coulter, M. (2013). Management,
(11th ed.). England, UK: Pearson Education
Limited.
Sagie, A. and Aycan, Z. (2003). A Cross-Cultural
Analysis of Participative Decision- Making in
Organizations. Journal of Human Relations, 56 (4),
pp. 453-473.
Sofijanova, E. and Chatleska, V. Z. (2013). Employee
Involvement and Organizational Performance:
Evidence from Manufacturing Sector in Republic of
Macedonia. Trakia Journal of Science, 11(1),
pp. 31-36.
Stoner, J. A, Freeman, R. E. and Gilbert, D. A. (1995).
Management, (6th ed.), New Jersey: Prentice Hall.
Swiss Info (2005). Swiss Like Work, But Not Their
Salaries, Available: www.swissinfo.org (June, 7,
2005).
Vrba, M. J. and Brevis, T. (2002). A Guide to
Passing: General Management, Claremont: New
Africa Education.
Wainaina, L. M. Iravo, M. and Waititu, A. (2014).
Effect of Employee Participation in Decision
Making on the Organizational Commitment
Amongst Academic Staff in the Private and Public
Universities in Kenya. International Journal of
Advanced Research in Management and Social
Science, 3 (12), pp. 131-142.
Wagner, J. (1994). Participation’s Effect on
Performance and Satisfaction: A Reconsideration of
Research. Academy of Management Review, 19 (2),
pp. 312-330.
Watson, W. W. (2006). A Comparison of Attitudes
around
the
Globe.
Available:
http//:
www.watsonwayatt.com/research (December, 21,
2017).
Westhuizen, D. (2010). Culture, Participative
Decision Making and Job Satisfaction. Economic
and Industrial Democracy, 31 (3), pp. 285-305.
Williamson, M. G. (2008). The Effects of Expanding
Employee Decision Making on Contributions to
Firm Value in an Informal Reward Environment.
Contemporary Accounting Research, 25 (4),
pp. 1184-1209.
Zubair, A., Bushir, M., Abrar, M., Baig, A. S., and
Hassan, Y. S. (2015). Employee’s Participation in
Decision Making and Manager’s Encouragement of
Creativity: The Mediating Role of Climate for
Creativity and Change. Journal of Service Science
and Management, 8 (3), pp. 306-321.
70