Industrial Relations and Personnel Management Project Topics

The Impact of Employees Participation in Decision Making in Nigerian Public Sectors. (A Case Study of Power Holding Company of Nigeria (PHCN) Enugu)

The Impact of Employees Participation in Decision Making in Nigerian Public Sectors. (A Case Study of Power Holding Company of Nigeria (PHCN) Enugu)

The Impact of Employees Participation in Decision Making in Nigerian Public Sectors. (A Case Study of Power Holding Company of Nigeria (PHCN) Enugu)

Chapter One 


The general purpose of this empirical study is to assess the employee‟s participation in managerial decision making in public sector organization in Nigeria with reference to Power Holding Company of Nigeria Enugu. The specific objectives are;

  • To asses the impact of employee participation in management decision
  • To determine the impact of employee participation and non- participation in management decision on productivity of the Nigerian Public
  • To make recommendations based on the research



 There is hardly any subject matter which had not been previously written about directly or indirectly by others. Therefore, the aim of this chapter is to evaluate these previous write-ups and to determine earlier accomplishments in the fields as well as to disclose where contributions are desirable.

Much have been said and written about the impact of employees participation in decision making in Nigerian public sector. Employee‟s participation serves as training and testing group for future members of upper management, lack of qualified and oriented individuals undermine employee‟s participation in decision making and the availability of skilled individuals in organizational decision making promotes productivity.

This chapter is broken into various subsections, review of relevant literature (theoretical review), concept of participation, factors that influence participation, prerequisites for participation, forms of employee participation, different needs for participation, views expressed concerning participation, constraints to participation, the range of options for employee participation, Arguments for participation, Arguments against participation.


 Decision making permeates all aspects of the management process. To every manager therefore, notwithstanding his/her level in the organization, the importance of decision making can never be over emphasized. So also is the need for participation of employees in such managerial decision. Employee participation may be thought of as the growing and receiving of information, advice and suggestions and the sharing of experience among members of an organization. In management, it particularly applies to allowing employees to have a voice in shaping directly or indirectly what affects them. It therefore can be seen as a sharing process among managers and employees.

However, in the process of sharing, employees must be able to display an upward exertion of control over management decisions.

According to Guest and Fat Chart (1974), the situation where there is to be sharing of decision making may be no more than a means whereby management controls the situations.

The workforce (employees) is allowed to „say” as long as what they say has an agreement. When they disagree with management, then they are taken away. Employees‟ exertion of control should in a way lead to management‟s alteration or abandonment of proposed plans that affect the employees.

Participation of employees in managerial decision making is not applicable to all organization. Varying leadership style is characterized by the centralization of the decision making process on the manager himself. Being an autocratic leader, the manager is seen as one who commands and expects compliance. The dominant force involved is power. However, since the managers view authority as the only means of getting this done, performance of employees as expected is always minimal.





 This chapter focused on a clear and concise description of the procedures and manner through which this research work was conducted. Data has to be gathered for proper analysis and investigation of employee‟s participation in decision making in public sector organizations using Power Holding Company of Nigeria Enugu, as a case study. Therefore, an attempt was made in this chapter to show the “how” of this research by considering areas such as design of the study, research instruments, population of the study, sample and sampling techniques, method of data analysis and reliability of instrument.


 The research design used in any study is determined by the nature of the research problems and the objectives of the study.

The research design appropriate and which was chosen for this academic research is the descriptive survey which involves studying the employee‟s participation in decision making in Nigerian Public sector using Power Holdings Company of Nigeria Enugu, as a case study. The reason for this is to make for easier acceptance, the evaluative assessment and comments of respondents as representing the impact and extent to which employees participate in managerial decision making in Power Holding Company of Nigeria Enugu.


The location of this study was at Power Holding Company of Nigeria, Regional Head Quarters Enugu Okpara Avenue, Enugu East Local Government Enugu State.




 This chapter focused on the analytical aspect of the research work. The general report of activities conducted on the primary data collected from the sample population was made for proper presentation and analysis of responses generated from the administered questionnaire. The presentation was divided into two parts. Section I covered the classification of respondents according to Sex, Age, Educational Background, Department, Status (position within the organization) and Working Experience. Section II covered the classification of responses according to the research questions and hypothesis.




This chapter focused on the summary arising out of the findings and analysis carried out in the previous chapters. Conclusions thereon were stated. Recommendations were made for not only the benefit of both the manager and employees of Power Holding Company of Nigeria Enugu, but at the organisation at large.


 Employees‟ participation is a feature in all organizations, whether small, medium or large, but the procedures, methods and levels of participation used by small, medium and large organisation often differ significantly. Similarly, there are variations in employees‟ participation procedure from one section of the business to another. The objective of the study was not to define employee participation only, but to find out its impact on the productivity of an organisation. In chapter one, the problem being investigated was clearly stated and this was aimed at considering and assessing the impact of employees‟ participation in decision making on the productivity of Power Holding Company of Nigeria (PHCN) Enugu, also, theoretical framework was made on the research. In chapter two, all known literatures that were relevant to the study under focus were reviewed.

On methodology, in chapter three, descriptive information on statements of study population, sampling technique and size, research instrument, methods of data collection and the analysis were given. As a result of the critical presentation and analysis of data in chapter four, various facts as regard employees‟ participation in decision making were unveiled. For instance, the following observations were made by the researchers as a result of the study carried out:

  1. The extent to which employees‟ participation in decision making of the company is
  2. The Study also revealed that staff rank, educational qualifications and experience are the determining factors for employee participation in decision
  3. It was further highlighted in this study that employees do not always meet to discuss with managers, they do that occasionally (sometimes).


 The following conclusions were made from the findings of this study:

Employees‟ participation serves as training and testing ground for future members of upper management. Also lack of qualified and company-oriented individuals undermine employees‟ participation in decision making at lower organizational levels.

The availability of skilled individuals in organizational decision making promotes productivity. Management is encouraged to make decisions with pre and post discussion and consultations with employees. They should also change their decisions when rejected by employees as it may not be favorable to the employee or may be capable of hindering objectives.

However, the extent to which subordinates participate in decision making is inadequate, management should henceforth improve the degree of employees‟ participation in decision making.

This is because, if employees participate adequately in decision making, it will result to high productivity in the organisation.

Managers should be meeting frequently with the employees to discuss issues about the organisation as this will help to widen the employees‟ knowledge and also increase their understanding as it pertains to decision making and their aspect of the job.

Since the yardstick of employees‟ participation in decision making is on his staff qualification, rank and experience on the job, it is worthwhile that management train and development employees to keep pace and these criteria.


In a view to improve and ensure high productivity and better labour management relations, the following recommendations are made;


 Power Holdings Company of Nigeria Enugu should provide a psychological climate conductive for effective employee participation in decision making to take place. It should encourage and initiate a two-way flow of information, so as to ensure a meaningful exchange between management and employees. As a way of encouraging employees to participate effectively, he must be made to feel that his opinions and ideas mean something and that he is valued both as a person and an employee. Also, the organization‟s effort to encourage participation must be sincere. If employees‟ participation programmes are used as gimmick to improve „moral‟ with little or no intent of using employees‟ opinion and suggestion to influence decision, it becomes meaningless and often does more harm than good. Power Holding Company of Nigeria Enugu should establish guidelines as to the freedom managers could allow employees in making decisions concerning work in their departments.

Also, since the company utilizes rank, education and experience in determine who should be involved in decision making there is need to instigate and encourage study leave with or without pay and part time programmes to enable the employees‟ knowledge, competence and position in the organisation. Also, the organisation should allow the experienced and inexperienced to participate in decision. This will make both feel that they have some control over their work.


 As a way of encouraging effective employee participation in decision-making the manager must operate to two-way communication flow. His effects to encourage participation must be sincere and the freedom he can allow employees in making decision concerning work in his department must not exceed the guidelines established by the organization. He must always remember that participation does relieve him of authority or his responsibility for making decisions. The last word rests with him. Also, the manager must realize that he has a dual responsibility – the manager‟s responsibility to his organization and the other of his employees. Therefore, the desire and wishes of the employees must be measured against the goals and objectives of the organization.

Management should try and develop group discussions among employees. Decisions can be referred to these groups and in this way, they will develop a perception of common work goals and requirements including the production standard expected of them, an eventually influenced decision-making in the company.


 The importance of employees‟ advice and suggestions in the growth of the company cannot be overemphasized. Employees should therefore be allowed to participate in management decision- making, the benefits of such participation include higher output, better quality of work, higher job satisfaction, greater commitment to goals, better acceptance of change, less absence, reduced stress and turnover and greater self-esteem.

However, the degree of which an employee is allowed to participate in decision making depends to a great extent on his background and training. If the employee has no background on the subject being discussed, in other words no knowledge and competence with respect to the problems, then his opinion and suggestions will have value. Therefore, employees should design appropriate method of improving their educational background so as to be able to contribute meaningful in decision making process in the organization. Inspite of the poor background however their advice and opinion can still provide information in the area of concern. By attending meeting, both the experienced and inexperienced will feel that they have some control of their work. it is hoped that the implementation of the above recommendations by the Power Holding Company of Nigeria Enugu would guarantee a better employee management relation and this, will improve the level of productivity.


 From the research findings, the following could be implied. Where the management of Power Holding Company of Nigeria Enugu views my recommendations with scorn, the organization will not have high level of performance from it‟s workers, also will lead to demotivation, low productivity, in efficiency among management staff and employees. But, where by the recommendations of this research be strictly implemented, as it will help to increase productivity and bring more profit to the company.


 In conducting the research work, due to time and finance constraints studying all the Nigerian Public sectors would be difficult but was limited to just one public sector which is Power Holding Company of Nigeria Enugu. The following were included:

TIME: There are time constraints for the research project and within the time specified, the normal lecture was also in progress, therefore, the researcher was faced with a lot of stress to combine both the research work and the lecture together. The implication of this work was that the period the researcher was supposed to spend on findings was limited as a result more quality work may be hindred or affected.

FINANCE: Capital has been rated the most important resources to carryout a given project. Research work to this end was not left out because the information needed to write this project was not gathered in one place.

QUALITY OF INFORMATION: The analysis of the data depended largely on the information that the researcher acquired from the staff of Power Holding Company of Nigeria Enugu. After administering the questionnaire it was expected that the information needed was provided by the management of Power Holding Company of Nigeria Enugu.


 Further researchers on the impact of employees participation in decision making in the Nigerian public sectors should endeavour to further the study on the following:

  • Further study should be carried out using more public
  • Further study should implore other means of data collection
  • Further study of this topic should test more hypothesis other than the ones tested here and use another method of hypothesis testing different from the chi-square methods used in the study.


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