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
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 organisations overall strategy depends on the support of all business units, organization wide support is crucial.
However, evidence in organisational decision making suggests that businesses suffer substantial losses due to bad practice in decision making. Which result to workers not participating on vital issues that affect them, such as remuneration issues of the organisation, not involving employees on decision team, lack promotion at when due, not considering training and development programme important ,all these issues affect the productivity of the organisation and as these
issues linger worker moral become low, absenteeism and presenteeism will become order of the day, which likely result to staff turnover or burnout. Pertinent to the above the study seek to investigate impact of management decision making on workers performance.
1.3 OBJECTIVES OF THE STUDY
1. To determine the effect management remuneration decision on workers performance in manufacturing firms.
2. To identify the influence promotion decision on workers performance in manufacturing firms.
3. To ascertain the how employees involvement in management decision affect workers performance in manufacturing firms.
4. To evaluate the effect of effective decision making training and development on workers performance in manufacturing firms.
1.4 RESEARCH QUESTIONS
1. What is the effect of management remuneration decision on workers performance in manufacturing firms?
2. How does decision on promotion influence workers performance in manufacturing firms?
3. How do employees involvement in management decision affect workers performance in manufacturing firms?
4. What is the effect of effective decision making training and development on workers performance in manufacturing firms?.
1.5 RESEARCH HYPOTHESES
1. Ho: Management remuneration decision does not significantly affect on workers performance in manufacturing firms.
H1: Management remuneration decision significantly affect on workers performance in manufacturing firms.
2. Ho: Decision on promotion do not significantly influence workers performance in manufacturing firms.
H1: Decision on promotion significantly influence workers performance in manufacturing firms.
3. Ho: Employees involvement in management decision do not positively affect workers performance in manufacturing firms.
Hi: Employees involvement in management decision positively affect workers performance in manufacturing firms.
4 Ho: Effective decision making of training and development do not positively affect workers performance in manufacturing firms.
Hi: Effective decision making of training and development positively affect workers performance in manufacturing firms.
1.6 SIGNIFICANT OF THE STUDY
1. It is significant in the sense that its finding will serve as a base and framework for future researchers to carry out further studies.
2. The study will expose the important of good decision making to both employee and manager, to understand that bad decision making kill moral and reduce productivity of a company.
1.7 SCOPE OF THE STUDY
The scope of the study was limited to three manufacturing, which include: ANAMCO Plc, Nigeria Breweries Plc, and Nigeria Bottling Company, Basically the study confirmed on the following concept of decision making, types decision making. Key factors in decision making, why make better decision, decision making process. Decision quality, organizational decision making, model etc.
1.8 LIMITATIONS OF THE STUDY
As part of the research experience by researcher all over globe certain limitation hinder effective collection of materials.
1. Time constraint: The time required for this project work was not enough, this was because the project work was done at same time of serious academic work was going on in the school.
2. Financial constraint: The finance needed to carry out this work is too much and cannot be afforded by the student. This poses great limitation to the successful carrying out of this work.
3. Scarcity of materials: There is generally non-availability and adequate literature on the research topic. Hence the researcher finds it cumbersome to finalized.
4. Non-challant attitude of respondents: Another limitation in the course of carrying this study was the non- challant attitude of the respondents in supplying the necessary information. This was probably due to their ignorance of the main purpose of the study. Also many refused to great interviews or answer questions bordering on the activities of their organizations.
1.9 DEFINITION OF OPERATIONAL TERMS
Decision making: This could be define as the product of intellectual processes resulting in the selection of a course of action between numerous options, leading to a final selection (Practice 1991).
Organizational decision making: this is the process by which one or more organizational units make a decision on behalf of the organization (Huber 1981).
Employee Moral: the state of the spirits of an individual or group as shown in the willingness to perform assigned tasks” (Morris 1981).
This material content is developed to serve as a GUIDE for students to conduct academic research
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