EMPLOYEE PARTICIPATION AND ORGANIZATIONAL EFFECTIVENESS OF SELECTED MANUFACTURING FIRMS IN RIVERS STATE

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Abstract

This research investigated the relationship between Employee Participation and Organizational effectiveness (A survey of selected manufacturing firms in Rivers State.). The study utilized a survey research design in which population which consists of all employees of selected manufacturing firms in Rivers State, a total of 150 workers. The sample was driven from the population using Taro Yamene formula for sample size determination with 5% confidence level in which a total of 109 employees was driven out of the population and questionnaires administered according to the sample.  The questionnaire was designed to address the extent to which Employee Participation influence Organizational effectivenessof selected manufacturing firms in Rivers State. Data collected were presented using tables and analyzed using simple percentage. And the chi-square “X2” statistics was used to test the hypothesis developed in order to determine if there exist a positive relationship between employee participation and organizational effectiveness. The study found that, team orientation, motivation, and job satisfaction were suitable dimensions of employee participation and has great impact on organizational effectiveness. And also, the study found that there exist a positive relationship between employee participation and organizational effectiveness. The study therefore requires that managers should put in place all these factors in order to improve organizational effectiveness.

TABLE OF CONTENTS

Title Page    –        –        –        –        –        –        –        –        –        –        I

Declaration-         –        –        –        –        –        –        –        –        –        –        II

Certification                   –        –        –        –        –        –        –        –        –        III

Dedication            –        –        –        –        –        –        –        –        –        IV

Acknowledgements        –        –        –        –        –        –        –        –        V

Abstract      –        –        –        –        –        –        –        –        –        –        VI

Table of Content            –        –        –        –        –        –        –        –        VI

CHAPTER 1:  INTRODUCTION

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

1.2     Statement of the Problem        .                  –        –        –        –        –        3

1.3     Objectives of the Study           –        –        –        –        –        –        3

1.4     Research Questions       –        –        –        –        –        –        –        4

1.5     Test of Hypothesis –      –        –        –        –        –        –        –        4

1.6     Significance of the Study         .                  –        –        –        –        –        4

1.7     Scope of the Study        .                  –        –        –        –        –        –        5

1.8     Limitation of the Study           –        –        –        –        –        –        5

1.9     Definition of Terms                 –        –        –        –        –        –        6

CHAPTER 2

LITERATURE REVIEW

2.1     Conceptual Framework           –        –        –        –        –        –        7

2.2     Theoretical Framework  –        –        –        –        –        –        –        20

2.3     Empirical Review Of Related Literature               –        –        –        22

CHAPTER 3

RESEARCH METHODOLOGY

3.1     Research Design            –        –        –        –        –        –        –        25

3.2     Population of the Study                    –        –        –        –        –        –        25

3.3     Sample and Sampling Technique               –        –        –        –        26

3.4     Questionnaire Design              –        –        –        –        –        –        27

3.4     Method of Data Collection      –        –        –        –        –        –        27

3.6     Method of Data Analysis                  –        –        –        –        –        27

3.7     Reliability and Validity –         –        –        –        –        –        –        –        28

CHAPTER 4

DATA PRESENTATION AND ANALYSIS

4.1     Data Presentation          –        –        –        –        –        –        –        29

4.2     Data Analysis                –        –        –        –        –        –        –        32

4.3     Test of Hypothesis –      –        –        –        –        –        –        –        34

4.4     Discussion of Findings            –        –        –        –        –        –        37

CHAPTER 5

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1     Summary             –        –        –        –        –        –        –        –        40

5.2     Conclusion           –        –        –        –        –        –        –        –        41

5.3     Recommendations                   –        –        –        –        –        –        –        41

References            –        –        –        –        –        –        –        –        –        43

Appendix I           –        –        –        –        –        –        –        –        –        49

Appendix II                   –        –        –        –        –        –        –        –        –        50

CHAPTER 1

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

Achieving organizational effectiveness is the ultimate purpose to be focused by any organization that takes enormous effort to maximize employees’ task efficiency, commitment, and sustain intrinsic motivation to perform well in difficult times. This is why recent efforts to improve organizational performance have begun to inculcate positive organizational concepts like optimism, trust, and engagement (Sarafidou J.O, &Chatziionannidis G, 2013).

As a matter of fact, among optimism, trust, and engagement, leaders and managers across the globe recognize employee engagement as one of the most vital element that affects organizational effectiveness (Welch, 2011). The complexity and competitiveness of today’s business environment requires that companies continuously raise the bar on their effectiveness. Top performance increasingly deand excellence in all areas, including leadership, productivity, and adaptation to change, process improvement, and capability enhancement (knowledge, skills, abilities, and competences).

According to research studies, there are some directions to improve organizational effectiveness, via; process mapping and measurement; process improvement, expert facilitation of internal interventions; productivity improvement; monitoring and evaluation; measuring and assessing the climate and culture etc. the continuance of employee engagement goes beyond the traditional notions of job satisfaction, organizational commitment, job involvement etc. engagement involves the active use of emotional, cognitive, and strategies (Bhuiyan A.H, 2010). Also, engaged employees being focused, energetic, and fully engrossed in their jobs are highly motivated to direct their focused energy towards organizational goals (Mace & Schneider, 2008; Barbera, & young, 2009).

Certainly, organizational performance and effectiveness is a function of the collaborative efforts of engaged employees (Bakker, 2011). Engaged employees experience greater attachment to their work and organization (Sarafidou J.O, Chatziioannidis .G. 2013) and they are more likely to do things that augment organizational effectiveness (Saks, 2008).

For instance, engaged employees are optimistic and spontaneous, they tend to exhibit positive attitudes and proactive behaviours at work place (Bhatti K.K 2011) including low absenteeism, helpful attitude towards co-workers and adherence to company rules etc, more popularly known as organizational citizenship behavior (Organ, 2008).

In this regard, research studies in organizational sciences have recently begun to report a positive association between employee engagement and OCB (Glisson C., Durick M., 2008).

Taking the same context ahead, it is proposed that employee engagement is related to organizational effectiveness and OCB functions as a mediator in the relationship between employee engagement and organizational effectiveness.

1.2     STATEMENT OF THE PROBLEM

The need for active participation in the activities of the manufacturing firms is seen as a good measure of organizational effectiveness and productivity. The absence of employee effectiveness to foster production processes undertaken by the manufacturing firms therefore requires immediate attention of the company management. Creating ad designing effective organizations is important (Hitt, 2008; Handa&Adas, 2005). Hence, the major problems of the study that necessitated the conduct of this research work include the following: lack of employee motivations, poor productivity, and instability of the organization, lack of team work, poor job satisfaction and no set goals achieved.

However, this study would be able to scrutinize the effectiveness of organizations based on the participatory role of employees, and determine if organizational effectiveness depends on employee participation.

1.3     OBJECTIVES OF THE STUDY

The main objective of this study is to examine the relationship between employee participation and organizational effectiveness in selected manufacturing firms in Rivers State.

The specific objectives to:

•        Examine the relationship between team orientation and market share.

•        Evaluate the relationship between motivation and profitability.

•        Ascertain the relationship between motivation and market share.

•        Determine the relationship between motivation profitability.

1.4     RESEARCH QUESTIONS

The following research questions were postulated for the purpose of this study:

•        To what extent does team orientation affect organizational effectiveness?

•        Does motivation influence organizational effectiveness?

•        Does job satisfaction impact on organizational effectiveness?

1.5     RESEARCH HYPOTHESIS

The following null hypothesis will be used to guide the conduct of this research study:

Ho1: There is no significant relationship between team orientation and

          Organizational effectiveness.

Ho2: There is no significant relationship between motivation and             organizational effectiveness.

Ho3: There is no significant relationship between job satisfaction and      organizational effectiveness.

1.6     SIGNIFICANCE OF THE STUDY

The study is to be beneficial for organizations especially manufacturing firms in rebranding the nature of employee participation in the given function of the company.

Given the rationality for a significant association between employee participations and organizational effectiveness, it has been observed that employees’ extra efforts in form of citizenship behavior enable supervisors to devote more time in planning organizational activities, promote optimum utilization of organizational resources, enhance co-workers and managerial productivity, make organization a better place to work and thereby resulting into better functioning and smooth running of the organization.

1.7     SCOPE OF THE STUDY

The scope of the study is delimited in three dimensions:

•        Content Scope: The research study is restricted to evaluate employee participation and organizational effectiveness of manufacturing firms.

•        Geographical Scope: A survey study of these companies in respect to employee participation and organizational effectiveness was conducted in selected oil producing firms in Rivers State domiciled in Port Harcourt.

•        Unit of Analysis: The unit of analysis include the staff of selected manufacturing firms in Rivers State.

1.8     LIMITATION OF THE STUDY

The researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing that it is a new discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size.

Another major limitations that we encountered in the course of carrying out this research study, was the short time frame, coupled with the tight academic time table, which prevented a very comprehensive study.

Lack of adequate funds was also a major impediment to the study as funds was not always available to us at the time it is needed and therefore caused a slowdown in the process.

1.9     DEFINITION OF TERMS

The following terms were applied in the conduct of the study:

Employee Participation: is a distinct and unique construct that consist of cognitive, emotional and behavioural component that are associated with individual role effective performance.

Motivation: Is an impulse that causes a person to act or it is and internal process that make a person to move towards a goal.

Organizational Effectiveness: is the degree to which and organization realizes its goals as it is stipulated.

Profitability: This is the ability of the manufacturing firms to make profit from all the business transaction embarked upon by the organization.

Market Share: This refers to the percentage of the market (customers patronizing a particular product) that a company has.

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