EMPIRICAL ASSESSMENT OF THE LINK BETWEEN PARTICIPATORY DECISION-MAKING AND FIRM PERFORMANCE IN NIGERIA
EMPIRICAL ASSESSMENT OF THE LINK BETWEEN PARTICIPATORY DECISION-MAKING AND FIRM PERFORMANCE IN NIGERIA

Summary/Abstract: Participatory decision-making maintains a leading theme across business, policy, and practice research. The success of any organization depends on involving the workforce’s entire capacity to produce new ideas and ways of working to outsmart the competitors and have a competitive edge in the industry they are operating in. Research aims. The focus of this study was to examine participatory decision-making and firm performance in the Nigerian banking industry. The study precisely sought: to determine the effect of employee participation in work decision on service quality of the firm, to ascertain the relationship between consultative participation and firm profitability, and to investigate how representative participation can affect the timely delivery of firm service as well as to determine the impact of short-term participation on the productivity of the firm. Methodology. In the course of this study, several relevant literary works were reviewed. The survey method was used to collect data of which 300 copies of the questionnaire were distributed and 288 were retrieved. Regression analysis and Pearson correlation coefficient were used to test hypotheses. Key findings. The results show that a significant and positive relationship exists between service quality and employees’ participation in work decision. Similarly, a weak significant positive relationship exists between consultative participation and firm profitability. Furthermore, there exists a positive relationship between timely delivery of firm service and representative participation. On the other hand, there is no positive relationship between productivity of the firm and short-term participation. When employees are allowed to participate in decision-making, it gives them a sense of responsibility for their actions as they see themselves as an important member of the organization. The study, however, recommends that for the promotion of creativity as well as innovation in the organization, employees should be allowed to participate in decision-making.decision-making, participatory decision-making, consultative participation, performance

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