The Effect of Employee Participation in Decision Making on Organizational Performance
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Date
2023-07
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Addis Ababa University
Abstract
Employees are the key assets of the company and have an effect on the organization's
performance. The primary goal of the study was to examine the effect of employee
participation in decision-making on organizational performance at the Cooperative Bank of
Oromia. Five participation levels, which include informative, consultative, administrative,
associative, and decisive participation levels, were considered independent variables. A
descriptive and explanatory research design and quantitative research approach were used,
taking into consideration the objectives of the research. On the other hand, the researcher
used stratified with combination of purposive sampling method to gather data from the
Cooperative Bank of Oromia's professional employees working at Head Quarter. A
structured questionnaire based on prior research was used as a data collection instrument
and distributed to 141 respondents. From the total samples, 115 questions were returned,
with a response rate of 82.5%. A statistical data analysis tool, SPSS Version 20, was utilized
for data analysis. Descriptive statistics were used to arrange, summarize, and present the
study's data. Additionally, inferential statistical tools such as correlation and regression
analysis were used to examine the relationship between dependent and independent
variables. From the five hypotheses, informative and associative participations were
accepted, while consultative, administrative, and decisive participations were not strong
predicators of organizational performance. Informative and consultative participation were
the highly practiced levels of employee participation in decision making in the cooperative
Bank of Oromia. Recommendations were forwarded based on the research findings of
Informative and associative participations are positive and significant effect on
organizational performance, informative participation and consultative participation highly
practiced levels of employee participation in decision making.
Finally, the areas for future research to focus on other forms of employee participation like
participation through ownership, participation through representatives (workers Union) and
participation through job enrichment or their mixed approach and etc were identified and
recommendations were forwarded based on the above main research findings