INTRODUCTION

1.1 Background of the Study

In any organization, either it is large or small for profit or non-profit; governmental or non-
governmental engage in a matter of human resources. These resources are the vast resource of
people in external environment from which organizations obtain its employees people are
perhaps organization most precious internal resources because they are organization life blood.
They provide skills, knowledge and driver that create, maintain and advance organizations.
(Stephen Robbin, 1998)

Employees play an important role in the success of organizations. To be successful, an

organization must attract and keep the individuals it needs to achieve its objectives and thrive. To
do this it must assess their attitudes towards the work. Among the most measurement of attitude
towards work either satisfaction or job satisfaction in organizations sustainability are highly
inters related because any organization can be sustainable if it employees give effective response
to their job. To get job satisfies employees, contribution of participatory decision making is high
due to greater pull of knowledge, different perspectives greater comprehension and increased
acceptance and so on. (Cliffered, 2000)

Participatory decision making is a type of decision making, that involves participating employees
in various form of decisionmaking activities. Due to the increased complexity of many problems
in decision making it requires specialized knowledge in numerous fields, usually not possessed
by one person; participative decision making is very important. To insure sustainable
organization many managers spend eighty percent of their working time in committee meetings
when employees are satisfied an organizational sustainability and successfulness continuous
normally. However, employees are not satisfied with their work. One of the most complain
everywhere is manager’s decision making style such as more centralized and autocratic type
therefore participatory decision making should provide an uninterrupted work for employees to
Gamo Zone Education Office without incurring additional cost. (Cliffered, 2000)

1.2 Statement of the Problem

Many organizations have experienced the lack of commitment by employees towards

implementation of decisions taken by top management which undoubtedly has serious
repercussions on organizational success. It is for this reason many organizations are employing
methods for employees to participate in decision making process which has led to setting up of
organizations within, such as Industrial and Commercial Workers Union (ICU) as representatives
for employees during decision making and other methods (Stephen Robbin, 1998).
Decision making is mainly use administrative to motivate the employee, to creativities and to
share or shift risk of different level. It is the basis for the organization objectives achievements:-
increased acceptance, greater pool of knowledge and skill.

Much dissatisfaction emanating from decisions taken by management has led to many actions
taken by employees including strike actions. For example, the strike action of staff of Barclays
Bank occurred as a result of employee dissatisfaction with the decisions of management and the
Board of directors involving employees and it was seen as a disadvantage to their welfare,
growth and survival of the organization (Ghana News Agency, 2006). Previous researches were
shown that when employees are not made to participate in decision making process, it leads to
job dissatisfaction, lack of organizational commitment, low labor – management relations which
reduce employee performance.

Employees are at the same time important elements of the accomplishment of the organizational
goals, and thus organizational survival. The reason basically rests on the fact that employees are
operators and are in better position to know the problems they encounter in doing a particular
task and how best to solve them.

The problem mainly lies on the fact that participation though obtained has not been clearly
understood as well as its benefits. Some of the managers feel that the decision making
process is their sole prerogative and as such should be protected.

This research, therefore, seeks to investigate whether allowing employees participate in decision
making has an effect on the employee performance and finding them.

1.3 Objective of the Study

In consideration in the above problem and magnitude of their impact employees’ performance,
the study has the following objective.

1.3.1 General Objective of the Study

The general objective of the study was to assess participatory decision making and its effect on
employee performance in case of Gamo Zone Education Office.

1.3.2. Specific Objective of the Study

1. To examine why employees are not allowed to participate in decision making
2. To identify the consequences of not allowing employees to participate in decision making
3. To investigate the effect of participatory decision making on employee performance

1.4 Significance of the Study

In addition to fulfilling the academic requirement of the researcher, the result of the study will
have the following benefits. Primarily, the results of this study will be of benefit to the selected
organization in particular and Education sector in general; by understanding the state of
participatory decision making and its effect on employee performance as it will help the
organizations to take corrective measures.

With this regard, the study will have the following importance:
 The findings of this research will help banks to understand the effect of participatory
decision making on employee performance.
 It will provide literature for the Education under participatory decision making.
 It will provide solution for the organization’s participatory decision making problems and
it may give them an idea of where they are presently in terms of their employees’ performance
and what they should do in the future.
 It will help to other researchers who want to conduct further study on the subject in the
future.
 Further, this research study may be of interest to those exploring participatory decision
making in Ethiopian context in general, and Education Sector in particular.

1.5 Scope of the Study

The scope of the study was limited to identifying factors that affect the practice of participatory
decision making in the case of Gamo Zone Education Office. Since this practice applied all over
the organization but the researchers were not able to fulfill because of lack of finance conduct a
very large research and lack of secondary data regarding to the organization is participatory
decision making process.

1.6. Limitation of the Study

Besides to its scope, the researcher was faced some problems, the respondent would be
involuntary to fill the questionnaires due to intensity of work load. But the researcher was taken
measurement by arranging free time that suitable to respondents to give correct answer freely.
Moreover the respondents’ fears to explain over all problems that are realized in decision making
process of their organization.

1.7.Organization of the Study

This research paper was divided in to five chapters. The first chapter related to background of
the study, statement of the problem, the objective of the study, significance of the study, scope
and limitation of the study and the organization of the paper. The second chapter was focused on
review of related literature from different sources. The third chapter was presented methodology
of the study. Chapter four was presented data analysis and presentation. Finally, chapter five was
presented conclusion and recommendation.
 CHAPTER TWO

LITERATURE REVIEW

2.1 Concept and Definition of Participatory Decision Making

A popular strategy for managing people is to involve them in decision about their work and
environment. We know that people are generally more willing to do their jobs and to make an
effort to change their performance when they are take in to account in one very effective way of
taking subordinates into account is to talk directly with them about problems and allow them to
help make decisions. Direct involvement allows-individuals to agree and to make a
publiccommitment to decision. When that happens subordinates are more likely to make decision
work. (Stephen Robbins 1998 P.365)

Confusion exists about the exact meaning of participative decision making Stephan clarified this
situation by defining participative decision as the process whereby employees play a direct role
in setting goals, making decisions solving problems and making changes in the organization.
Without question participation decision making entails much more than simple asking employees
for their ideas or opinions.

Employee involvement also could participative management refers to the degree that
employment share information knowledge, rewards and power throughout the organization.
Employments have some level of activity in making decision that was not previously within their
mandate. The higher the level of involvement the more power people have over the decision
process and outcomes. Involved employees also receive information and posses the knowledge
required to make a meaningful contribution to this decision process. (Stephen Robbins: 1998 P.
367)

One reason is, employee participation has become popular because it is an interval part of
knowledge. Management corporate leaders are realizing that employee knowledge is a critical
recourse for competitive advantage so the fore encouraging employee to share this knowledge.

Technology has also pushed employed employee involvement more than we could have
imagined a decade ago. (Gray strake 2000: PP. 353)

2.2 Management Styles in Decision Making

When manager make decisions, they must first gather information and then evaluate it. Interims
of information gathering the decision make can contribute on either getting the “big pitcher” or
just the details. The former strategy is called control inspector, for example, assesses the overall
pattern of output of a production line to determine of quantity control standards are being met
(perceptive style). The later strategy is called receptive style for example; an auditor or
accountant on the other hand, considers detailed information. (Gray, 2000 PP. 377). Once the
information gathered it can be analyzed either by systematically, or intuitively decision makers.
Intuitive decision makers use a trial and error approach, i.e. the briefly examine many
alternatives and have many stops and starts in the process. They are not found to a particular
technique or a rigid stretcher in their analysis of problem. Intuitive decision makes often roles on
hunches and they defend their solution basis of whether or not it worries. (Gray Stark: 2000, PP.
358)
Systematic decision makes on the other hand stick to a highly structured way of looking
attheproblem they define specific constraints early in the decision making process and they
conduct on orderly search for additional information. They stress the method of solving the
problem and defended their solution on the basis of their use of systematic rational procedure for
making the decision. (Gray/Stark: 2000, PP. 358)

2.3 Types of Decision

Managers make many different kinds of decision which can range anywhere from simple to
complex, routine to unique. General decision may be classified as either programmed or non
programmed decision.
2.3.1. Programmed Decision
Programmed decision is made in responses to situation that are routines, structured in all types of
organization. In bottling plant, for example, that part of quality control dealing with whether the
bottle is filled to the proper level follows programmed decision. The credit granting function in
banks is another example of programmed decision making. As another example, consider a
stores policy on merchandise returns. If your purchase a shirt that does not fit and you want to
return if what happen you will probably be allowed to exchange it for ash it that does fit.

2.3.2. Non-Programmed Decision

Non-programmed decisions are made in response to situation that is unique relatively
unstructured and/or major consequence to the organization. Example introduction of new plant
in to organization. If a firm wishes to build a new plant but has but has never done so before this
activity is clearly a non-programmed decision. Many decisions will have to be made in areas
where management has no precedents to follow. Non programmed decision can have a much
greater impact on organization than programmed decision (Gray, 2000: PP: 350-351)

2.4 Participatory Decision Making

Participatory decision making is when organizations directly delegate to non-management a
significant amount of decision making authority. Studies have however shown that only about 35
percent of organizations implement it in their organizations.

Participative management involves management treating the ideas of employees with respect and
consideration in decision making process. Some researchers believe that participative
management needs to be implemented in most companies because it is necessary. Sashkin feels
that the implementation of participative management scheme can satisfy all three basic human
work needs which in his opinion are: autonomy, achievement and interpersonal contact in the
context of work activities. He also noted that it is ethically unjustifiable to manage “no–
anticipatively” unless one maintains the position that individuals do not have a basic right to
remain unharmed by others.

Employee involvement has been conceptualized as the process of developing a feeling of

psychological ownership among organizational members and has been implemented via the
participation of employees in information, decision making and problem solving. Many studies
have shown that participative management approach is the best one to choose to stimulate
productivity. Theories of participative management advocate that managers share decision
making power with employee to enhance performance and work satisfaction.

Participatory decision making process create an avenue for employees’ to be involved in

decisionmaking process as they are pushed down to the lowest level of an organization.
Numerous studies all point to the fact that employee involvement or participation in decision
making does influence organizational commitment, job satisfaction and effectiveness. To some it
lowers absenteeism, enhance work attitudes higher, individual work performance (Bush and
Spangler, 1990), lower employee turnover and increase returns on equity improve organizational
learning culture. Research shows that employees want to be part of a team and they want to be
involved with decision making. It has been identified in law enforcement agencies some of the
critical problems that contribute to low morale, stress and high turnover stems from the lack of
employee participation or involvement in decision making process.

2.5 Forms of Employee participation

According to Cotton et al. different forms of participation in decision making were classified and
realized that six different combinations proved to be prominent in being able to describe all of
the studies in the sample. The six forms of participation were shown in the
Table 1.

• Formal
Participation in work • Direct
decisions • Long-term
• Influence: high to very high
• Formal
• Indirect
Employee ownership • Length: depends on how long the stock is held
• Influence: level of influence employees can have is usually determined
by their involvement in stock holder meetings.
• Formal
Representative • Indirect
participation • Length: can be both long term and short term
• Influence: medium to low due to indirect participation
• Formal
• Direct
Consultative
• Long term
participation
• Influence: depends on amount of participation in meetings such as
quality circles
• Informal
• Direct
Informal participation • Length: based on relationship employees have with supervisors
• Influence: varied levels of influence; which are determined by the
strength of the relationships between supervisors and their subordinates
• Formal
• Direct
Short term
• Short – term
participation
• Influence: depends on the amount of participation power given to
employees by management

Table 1: The six forms of participation by Cotton is tabulated above. Source: J Cotton et al.
Participation in work decisions ii. Consultative participation iii. Short-term participation iv.
Informal participation v. Employee ownership vi.Representative participation

2.5.1 Employee Ownership

Employee ownership is one of the formal ways of making employees participate in decision
making. It involves making employees to be part of the financial owners of the organization
usuallythrough equity shares. Employee ownership as a form of participatory decision
makingserves as an intrinsic and extrinsic form of motivation.

According to Klein, he proposed that there are three models of the psychological effects of
employee ownership. The first is the “intrinsic satisfaction model” of employee ownership which
suggested that the mere fact of employee ownership increases employee’s commitment and
satisfaction which leads to positive impact on productivity.

The second model is the “instrumental satisfaction model” of employee ownership. By this
model, employee ownership increases employee influence in decision making which turns to
increase the commitment level of the employee. The last model is the “extrinsic satisfaction
model” which suggests that employee ownership increases organizational commitment and
productivity thus employee ownership is financially rewarding to the employee. Steinheider et al.
argued that there is significant relationship between employee commitment and participation in
decision making and the former is manifested in positive job attitudes.

2.5.2 Consultative Participation

Consultative participation is a formal means where employees can take part in decision making.
This is usually done through the use of quality circles. Quality circles are seen as a group of
employees from different levels of a company who meet regularly to discuss ways of improving
quality and to resolve problems related to production. With quality circles, employees are made
to participate in the group of their strength to be able to make sound decisions.

Bradley and Hill define quality circles as semi – autonomous work groups wherein employees
can work together and participate in the decision making process. In a study to examine the
impact of quality circles on employees, it was found that ninety percent (90%) of Usacorp and
seventy six percent (76%) of Ukayco employees felt that quality circles gave them greater
chance to participate in the way work was done in their sections. Pope explained that Toyota
claims their quality circles helped them maintain an edge over their competitors as technology
becomes less of a differentiator among auto makers. The research explained that quality circles
give employees on the lower management to submit new ideas which leads to creativity and
innovation, and also gives a high pride for team members to participate. Consultative
participation is seen to have a positive impact on the success of an organization through job
satisfaction, commitment, productivity and other array of a company.

2.5.3 Representative Participation

Representative participation is where employees elect executives or some members to represent

their interest in management meetings. With representative participation, employees participate
in decision through their selected executives. With this form of participation, employees input
and grievances are made known through their representatives. Representative participation is
indirect form participation because not all workers participate directly in the decision making.
Unions are the most used type of representative participation.

2.5.4 Informal Participation

Informal participation takes place through interpersonal relationship between lower management.
With a strong in a strong personal relationship with superiors, employees can indirectly make
some contributions on decisions taken by management.

According to Stringer, the strength of the relationship between subordinates and supervisor
directly affects job satisfaction. His research shows that there is significant correlation between
high – quality supervisor – employee relationship and job satisfaction which will improve
organizational efficiency. Though informal participation is not formally organized, it does shows
result and can effectively influence the amount of participation due to the amount of trust that
exist between supervisor and subordinate relationship. Dirks and Ferr indicate that trust can play
a huge role in satisfaction of employees and that the type of work environment determines
whether or not trust will be expected to result in a positive outcome. He noted that high levels of
trust results in more positive attitudes, higher levels of cooperation and superior levels of
performance which shows trust within an organization results in positive work ethics and
productivity.

2.5.5 Short – Term Participation

Short term participation is seen as an informal participation which mostly consists of rare events
in which an employee can participate. According to Steinheider et al.though short term
participation is not widely used, it shows positive results with satisfaction which will enhance a
positive impact on productivity.

2.6 Requirements for Implementing Participatory Decision Making

A common misconception by management is that participation in decision involves simply
asking employees to participate or make suggestions. In order for good decisions to be made by
employees during decision making process, effective programs must be undertaken to ensure
efficient and effective decision.

In order to achieve effective participatory decision making by employees, managers need to

approach the method of employee’s participation in decision making with an open mind. With
this mechanism, even though not all suggestions or ideas will be agreed upon, it however paves
way for creativity and innovation. Employees should also be willing to participate in decision
making process. Employees will only be able to make the right decisions if they have acquired
the right skills and knowledge concerning those decisions to be made. Management or managers
who want to practice participatory decision making must provide employees with the necessary
training, information or knowledge so they can make effective and efficient decisions. It is
known that employees may not participate in decision making process because they lack the
necessary skills or knowledge. Most researchers such as Colombo and Stanca Sepulveda and
Konings and Vanormelingen shows that training is a fundamental and effectual instrument in
successful accomplishment of the firms goals and objectives resulting in higher productivity.

Helms explains that through training, development opportunities and information sharing,
employees can acquire the conceptual skills needed to become effective managers and also
increases the commitment of employees to the organization and the decisions they make.
Pashiardis in the article “Epmloyee Participation in decision making” notes that for participation
in decision making to be successfully implemented, policy has to be changed to support this
approach. He further added that time, resources, participatory involvement and support will
determine the effectiveness of participation and recommends training to enable members
participate effectively.

2.7 Benefits of Participatory Decision Making

Researches have shown that allowing employees to participate in decision making process
through ownership and other forms offers various benefits which include commitment, job
satisfaction and employee productivity. Rice explains that putting decision making power as
close as possible to the point of delivery makes that implementation of those decisions not only
possible but also successful.

Participation in decision making leads to harmony in the organization. It also improves staff
moral and support. Empowering employees and employee participation increases employee
satisfaction, motivation, innovation and decreases inefficiency. According to Kanter ; he explains
that a participatory work environment is theoretically more effective at enhancing innovations
than traditional bureaucratic structures because it promotes the sharing of product knowledge
between managers and workers who are closest to the products being done and therefore more
likely to develop strategies and suggestions for better quality items. Markowitz also makes it
known that giving employees decision making power boosts their moral and commitment to the
organization, which aids productivity. Helms reveals that employees who participate in the
decisions of an organization feel like they are part of a team with a common goal, and find their
sense of self-esteem and creative fulfillment heightened. Allowing employees participate in
decision making process also helps widen their views of the organization.

2.8 Adverse effects of Participatory Decision Making

The benefits of participatory decision making notwithstanding, there are undoubtedly some
disadvantages. One of these effects is that it slows decision making process and wastes time
since many people are involved in the decision making. Apostolou explains that employee
involvement in decision making is waste of time, lower efficiency, weakens the effectiveness of
management.

2.9 Conditions and Influences on Participation

Certain prerequisite conditions are necessary for participation to succeed in any organization.
Some of these conditions exist in the environment while some actually occur in the individual.
These conditions as stated by Davi s (1981) are as follows:
1.There must be adequatparticipate before action required for participation is hardly appropriate
in emergency situations.of participation must be relevant to the employee environment,
otherwise employees will look upon it merely as busy work.
3.The participants should have the ability such as intelligence and knowledge to participate. For
example, it is unreasonable to ask security men in a product manufacturing organization to
participate in mapping out marketing plans for their products.
4.The participants must be able, mutually, to communicate (to talkeach other's language) in
order be able to exchange ideas.
5. There should be no feeling of threat to either party. If workers think their status will be
adversely affected they will not participate. Similarly, if managers feel that authority is
threatened, they will not allow participation.
6. The potential benefit of participation should be greater than its cost. Participation should not
be done at the expense of the organization's work.
7. Participation can take place within the area of job freedom. Job freedom for an individual
or a department is its area of discretion after all restraints have been applied. Restraints in
this context include the framework within which the group makes decisions and such decision
cannot violate policy.
If these conditions as stated by Keith Daries are followed rigidly and blindly, that is, all of them
must obtain in one company before one concludes hat participation is not necessary. It is
sufficient that some of them must exist in the organization before participation can be practiced.
Tannebaum and Schemidt cited in Ike (1996 p. 18) also identified conditions given greater use
for participatory management on the part of subordinates, as follows:
-The subordinates have relatively high needs for independence
-They are ready to assume responsibility for decision making.
-They have relatively high tolerance for ambiguity.
-They are interested in the problems and felt they are important.
-They have the necessary knowledge and experience to deal with
the problems.
-They have learnt to expect to share in decision making.
Participation then, is like so many other management concepts we can put it to excellent use,
provided we apply it to the right problems and circumstances. Economic relatives, the interest of
participants, the personality characteristics of participants, the time available for discussion, and
the desirability of voluntary cooperation all need to be considered
when we decided how far to carry participation (Newman, Summer and Warren 1971).
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Research Design

The research design adopted for this work is descriptive research design. Sample of the
population of the organization would be drawn. Also a sample of respondents had been taken
from thepopulation of the managers and employees in these organizations. These samples
would be drawn using appropriate sampling techniques and procedures

3.2. Research Approach

As per Creswell (2003) there are three approaches that are used in conducting a given research.
These are quantitative, qualitative and mixed research approach. Quantitative research approach
was focused primarily on the construction of quantitative data, and quantitative data is a
systematic record that consists of numbers constructed by researcher utilizing the process of
measurement and imposing structure (Kent, 2007). The quantitative research approach was
employed measurement that can be quantifiable while qualitative cannot be measured (Bryman
& Bell, 2007). In mixed research approach inquirers draw liberally from both qualitative and
quantitative assumptions (Creswell, 2009).

In this paper the researcher was used mixed research approach; the rationale for combining both
quantitative and qualitative data is to better understand a research problem by combining both
numeric values from quantitative research and the detail of qualitative research and to neutralize
limitations of applying any of a single approach.

3.3 Description of Study Area

Arba Minch is capital of Gamo Zone. By the new administrative division it has four sub cities
namely shecha, Sikela, Abaya and Nechsar Sub-City. It is one of the big towns of the
region,SNNP, and located at 500 km from the capital, Addis Ababa, and 270 km away from the
regions political seat, Hawassa.

To list some of the big service offering institutions of the town, Arba Minch Health science
college, Teachers education college, Hospital, Health centers, Textile factory and Banks
(governmental and non-Governmental). It has also hotels and lodges like Arba Minch Tourist
hotel and Arba Minch Lodge Paradise.
The town is the home of different nations, nationalities and peoples and natives of the area are
called Gamos. Most of the Gamo people are living in the surrounding rural areas of the town
and their life is predominantly based on agriculture.

The geographical topography of the town is plain and it has mountain in its surroundings. Arba
Minch has kola type of climate and this makes life a bit tough. Here it is worth mentioning the
Contribution Lake Abaya and Chamo in moderating the very high temperature of the town.

Arba Minch is one of a naturally endowed place in Ethiopia. This makes the area suitable for
tourism and investment activities. Despite all these endowments the area is one that experience
low productivities, lack of asset, malnutrition, poor trade activity, poor health, poor housing and
other.

3.4 Source of Data

The researcher was used two types of data sources. First, the primary data was collected through
distributing questionnaire. The questionnaire was used to collect data from employees whereas
secondary sources data was generated through a review of relevant documents.

3.5. Methods of Data Collection

In the study both primary and secondary data collection methods were used principally, self-
administered questionnaires had been proposed tool for the primary data collection. Because the
time given to conduct this study is short, the researcher uses this technique to get more data with
in a short period. As an additional source of primary data, interview was conducted with
management of the company. The questionnaires include open ended questions that may invite
them to express their feeling, and closed ended questions that provide alternatives to choose. The
researcher was also used secondary data from books, newspaper, and magazines,

3.6. Sampling Techniques and Sample Size

A sample is made up of some of the members of the company. Selecting a sample will be a
fundamental element of the study. Since the number of employe in the organization is 60, the
researcher was forced to take all of them as a respondent in this study by using census method
since the total population of the study is small.

3.7. Method of Data Analysis

The data collected was analyzed by using descriptive method. This method helps to describe,
summarize and present quantitative and qualitative data that was presented in the form of graph,
table and etc.