EMPLOYEE INVOLVEMENT IN DECISION MAKING AND FIRMS PERFORMANCE IN THE MANUFACTURING SECTOR IN NIGERIA

Abstract

This study examines the relationship between employee involvement in decision making andfirms’ performance in the manufacturing sector in Nigeria. Data were generated by means ofquestionnaires to 670 manufacturing firms on employee involvement in decision making andperformance variables. Responses from the survey were statistically analysed using descriptivestatistics, product moment correlation, regression analysis and Z-test (approximated with theindependent samples t-test). The results of the study indicate a statistically significant relationshipbetween employee involvement in decision making and firms’ performance as well as reveal asignificant difference between the performance of firms whose employee involvement in decisionmaking are deep and the performance of firms whose employee involvement in decision making areshallow. The findings also reveal the involvement of participating firms in employee involvement indecision making. The implications of this study include the need for manufacturing firms todemonstrate high level of commitment to employee involvement in decision making for performanceenhancement.

Keywords

• employee involvement in decision making
• firms’ performance
• manufacturing sector
• culture
• Nigeria