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Employees’ participation in decision making at yeka sub city

construction & house development office, Addis Ababa

A Research paper submitted to Admass University College in


Partial Fulfillment for the Requirements of BBA in management.

Prepared by: Ermias Tizazu

Advisor: Ato Wendifraw

Admass University College


Faculty of business
Department of management

July. 2014

https:ermiastizazu.com
ABSTRACT
This paper is concerned with an investigation of the existing level of worker participation in
management decision making within Yeka sub city construction and house development office
(YCHDO). The study involved a survey in which a total of fifty eight (58) managerial and non
management employees were used as subjects. Structured questionnaire were the main research
techniques adopted for data collection while percentage distribution and measure of central
tendency statistical techniques were used to analyze the data collected for the study. Results
show that employees in organizations demonstrate a high interest in participation in the decision
making process within their respective work places. However, the actual level of involvement in
management decision making demonstrated by the managements was found to be relatively low.
Workers who are subjects of this study generally demonstrated willingness to accept the
responsibility of involvement in management decision making whenever such opportunity arises.
However many hold the view that management decision making is the preserve of the
management. This implies that while the workers are willing to accept the responsibility of
greater involvement in management decision making they are not ready to challenge the
management in this regard. Liberalizing management structure so as to allow for greater
workers involvement is recommended as well concern of policy makers about civil servant right
to bargaining collectively and unionization of public service worker is highly needed.
Acknowledgement
We acknowledge the assistance and support received from various people which made the
completion of this research and the writing of this report possible. We would like to present the
gratitude to, W/ro Rekik Haile for her uninterrupted helps in guidance and fortification that
enable us to prepare this research paper. We would also like to extend our thanks to Yeka sub
city Construction and House Development office different wereda employees support in giving
as the necessary information and immediate comments for our research paper.
Table of content

Table of Contents
ABSTRACT.................................................................................................................................................. 2
Acknowledgement ........................................................................................................................................ 3
Table of content ............................................................................................................................................ 4
List of tables.................................................................................................................................................. 6
Abbreviation and Acronyms ......................................................................................................................... 7
Chapter one ................................................................................................................................................... 8
1. Introduction ............................................................................................................................................... 8
1.1 Background of the study ..................................................................................................................... 8
1.2 Statement of the problem .................................................................................................................. 10
1.3 Basic Research questions .................................................................................................................. 10
1.4 Basic research Objectives ................................................................................................................. 11
1.4.1 General objectives ...................................................................................................................... 11
1.4.2 Specific objectives ..................................................................................................................... 11
1.5 Significant of the Study .................................................................................................................... 11
1.6 Scope of the study ............................................................................................................................. 11
1.7 Methodology and study design ........................................................................................................ 12
1.7.1 Research Design......................................................................................................................... 12
1.7.2 Population and sample size ........................................................................................................ 12
1.7.3 Sampling technique.................................................................................................................... 12
1.7.4 Data source and collection Method ............................................................................................ 12
1.7.5 Method of data Analysis ............................................................................................................ 13
1.7.6 Delimitation of the study ........................................................................................................... 13
Chapter Two................................................................................................................................................ 14
2. Literature Review.................................................................................................................................... 14
2.1 Introduction ....................................................................................................................................... 14
2.2 Theoretical back ground of WPM ..................................................................................................... 16
2.2.1 Introduction ................................................................................................................................ 16
2.2.2 The meanings of industrial democracy (ID), employee participation (EP) and employee
involvement (EI) ................................................................................................................................. 17
2.3 Nature and types of WPM ................................................................................................................. 19
2.3.1 Forms of Worker participation in management ......................................................................... 19
2.3.2 Level of Worker participation in management .......................................................................... 24
2.3.3 Element of Worker participation in management ...................................................................... 24
2.4 Employee involvement practices/ approaches .................................................................................. 25
Chapter three ............................................................................................................................................... 29
3. Data finding and discussions................................................................................................................... 29
3.1 Introduction ....................................................................................................................................... 29
3.2 Background Information on the Respondents ................................................................................... 29
3.3 Results ............................................................................................................................................... 30
3.3.1 What is current situation of the workers participation in decision making in Yeka sub city
Construction and House Development office? ................................................................................... 30
Relationship of Variables with involvement in management decision making. ................................. 33
3.3.2 What are natures and types of employee participation?...................................................... 34
3.3.3 What are causes of poor employee participation in decision-making? ............................... 34
3.4 Discussion ......................................................................................................................................... 35
Chapter four ................................................................................................................................................ 39
4. CONCLUSION AND RECOMMENDATION ...................................................................................... 39
4.1 Summary of findings......................................................................................................................... 39
4.2 Conclusion ........................................................................................................................................ 40
4.3 Recommendation .............................................................................................................................. 40
Reference .................................................................................................................................................... 42
Bibliography ................................................................................................................................................ 42
Appendix:.................................................................................................................................................... 44
A. Questionnaire .................................................................................................................................. 44
List of tables
Table 1 Distribution of respondents‘ age, by sex ......................................................................... 29
Table 2 Distribution of respondents‘ academic qualifications, by sex ......................................... 29
Table 3 Distribution of respondents‘ experience ......................................................................... 30
Table 5 Distribution of respondents Remuneration, by sex ......................................................... 30
Table 4 Distribution of respondents‘ Position, by experience (tenure) and sex ........................... 30
Table 6 Distribution of respondents according to their service experience, age, educational status
and remuneration. ......................................................................................................................... 31
Table 7 Distribution of respondents by Frequency of level in the decision making with
management. ................................................................................................................................. 32
Table 8 Distribution of respondents by direct participation in decision making process. ........... 32
Table 9 DISTRIBUTION OF RESPONDENTS BY MOTIVATIONAL ACTIVITIES ............ 32
Table 10 Relationship between Respondents Educational Level and participation in
Management Decision making. .................................................................................................... 33
Table 11 Relationship between Respondents age and Involvement in Management Decision
making........................................................................................................................................... 33
Table 12 Relationship between Respondents Job position and Involvement in Management
Decision making. .......................................................................................................................... 33
Table 13 Different methods available to participate in MDM as perceived by the respondents . 34
Table 14 Causes of poor participation in decision making as perceived by the respondents ..... 34
Abbreviation and Acronyms

CB Collective Bargaining

CELU Confederation of Ethiopian Labor Union

DM Decision Making

EI Employee Involvement

EP Employee Participation

EPM Employees Participation in Management

HRM Human Resource Management

ID Industrial Democracy

ILO International Labor Organization

JCC Joint Consultative Committee

LU Labor Union

MDM Management Decision Making

Ms Microsoft

PDM Participation Decision Making

PMDM Participation in Management Decision making

QC Quality Circles

TQM Total Quality Management

WPM Workers Participation in Management

WP Worker Participation

YCHDO Yeka Construction House Development Office

YSCCHDO Yeka Sub City Construction House Development Office


Chapter one

1. Introduction
1.1 Background of the study

In today‘s turbulent environment and intense competition, firms are forced to seek ways to be
more flexible, adaptive and competitive as they are faced with competitive pressures and rapidly
changing markets (David, 2005). Above all, firms are discovering that people really are the most
important asset (David, 2005). Success depends on involving the workforce‘s entire capacity to
generate new ideas and ways of working to outsmart the competitors. Employees must be
involved if they are to understand the need for creativity and employees must be involved if they
are to be committed to changing their behaviors in work, in new and improved ways. Employee
involvement is one important aspect of organizational life to achieved increased organizational
effectiveness and positive employee perceptions.1

Workers‘ participation in management means giving scope for workers to influence the
managerial decision-making process at different levels by various forms in the organization.
WPM is a system of communication and consultation, either formal or informal, by which
employee of an organization are kept informed about the affairs of an undertaking and through
which they express their opinion and contribute to mgt decisions

The objective of participation for management was initially limited to attaining higher
productivity through a more committed workforce. Later, as behavioral theories evolved,
participation was thought and expected to achieve more elaborate organizational ends, such as
improvement in employee morale, improved industrial relations, motivation and commitment,
and quality of work life or even what Abraham Maslow termed self-actualization. One
achievement that enterprises accidentally discovered was that the quality of decision-making
improved. This had major advantages in a complex or unstable environment, since more
variables and consequences were taken into account during decision-making itself. Managers
also discovered that decisions taken jointly were more acceptable to workers and could be
implemented more easily. This, too, had implications for difficult decisions or decisions, which
are normally not easily acceptable to workers, such as redundancy. Virmani (1988) felt that the
perceived differences in the objectives of participation had led to its failure in many cases. 2

One of the problems of participation is the lack of concrete and substantial evidence on the link
between participation and production. Productivity depends on many factors other than worker
motivation. In some cases, customer services have been known to improve with participation.

1
(Singh, January 2009, p. 20)
2
(Sen, 2012, pp. 2-3)
However, such improvements have also been achieved with other types of intervention, such as
more facilitating organizations or better working conditions. 3

Operationally, the term ‗employee participation‘ can be divided into two primary categories:
financial and work-related participation. Work-related participation comes in a number of forms:
individual or collective, and direct (i.e. face-to-face) or indirect (i.e. via a representative)
participation. These can be grouped into two main types of work-related participation: traditional
collective participation, which aims for a more equitable distribution of power throughout the
organization, and ‗new‘ forms of participation, which are more direct and individualized and
have tended to grow out of management strategies. Financial participation schemes take two
main dimensions and both are important from a policy perspective. The first approach involves
distribution of shares to employees, based on the assumption that share ownership induces
positive attitudinal and behavioral responses. A second dimension of financial participation
concerns flexibility of pay, where an element of remuneration varies with profitability or other
appropriate performance measures. 4

In addition, few studies had conducted in private sector of Ethiopia but we could not found
studies that focused on employee participation in DM in public sector. Moreover, there is no
previous studies regard to participation or related title in Yeka construction and house
development office. Hence, this study aims to further some light on employee participation in
YCHDO, as there are sign of its existence with in Ethiopian context.5

The Ethiopian labor legislation has nothing like the forms of ‗worker representation' that
characterize the systems of many European countries. At the workplace level, trade union
delegates may represent workers. The Constitution recognizes the right to freedom of
association, the right to form and join a trade union and the right to participate in trade union
activities.6

The Ethiopian Labor Proclamation states that one of its central objectives is to promote
collective bargaining as a means of maintaining industrial peace and of working in the spirit of
harmony and cooperation towards the all-round development of the country (Preamble). De
facto, collective bargaining takes place at the company level, even though the approach of the
Labor Proclamation is different and leaves the choice of the appropriate level of collective
bargaining to the parties and their judgment. According to Article 130, any party may request the
other party in writing. There are an estimated 450 collective agreements in Ethiopia, mostly
dealing with subject matters as benefits and increments (information given by the Ministry).7

YCHDO has this name after the 2003 reformation of the public company particularly Meret
Astedadrina Ginabata Office, which is early name of the YCHDO. It has 13 branches in each
thirteen woreda of the subcity. The enterprise does not experience the labor union and it has been

3
(Sen, 2012, p. 3)
4
(Summers & Hyman, Employee participation and company performance A review of the literature, 2005, pp. 2-3)
5
The enterprise archive and pamphlets distributed by YCHDO.
6
(Sommer, 2004, p. 17)
7
(Sommer, 2004, p. 20)
govern through the civil servant code. YCHDO has 100 employees including the management
staff and head office officer of the sub city.8

1.2 Statement of the problem

The spread of democratic value to virtually every society today has brought the need to examine
the implications of this trend to other spheres of life. With respect to economic sector, employees
are faced with the dilemma of how to cope with authoritative management in the work places
while living in a democratic society that guarantee basic fundamental freedom. 9

In addition, the denial of workers active involvement in decision making is held to be one of the
major causes of the problems which are manifested daily in the work lives of the modern
employees. The implication of these employees of increasing exposure to a monetized society,
rising education and wider contact among people resulting from the break-up of artificial barriers
was to shift these aspirations to a more satisfying work experience, greater control over the
organization of work, greater opportunity for personal development and wider scope in exercise
of initiatives. 10

Specifically, the refusal of work organizations to recognize the human factor in industrial
production through greater involvement of employees in its management decision making would
tend to create several human problems in this setting. A worker is a social being who bring his
personality, hopes, aspirations, anxieties, feeling and attitude to the work place. He seeks
satisfaction and meaning in his work as he does in other spheres of life. However, when he finds
that his work does not provide him with the opportunity to realize his potentials (for instance,
through strict management control) he tends to engage in negative behaviors like absenteeism,
apathy, low commitment and low productivity. The implication of these negative tendencies
resulting from strict management control has therefore raised serious concern among scholars
interested in healthy industrial relations. 11

As we had been worker for public, we definitely agree the above problems and follow the raised
series concern. There for we decide to investigate the worker PMDM in YCHDO, which is
among government (public) sector in Addis Ababa.

1.3 Basic Research questions

For the study, the following questions are raise to be answer.

1. What is current situation of the workers participation in decision making in yeka sub city
Construction and House Development enterprise?

8
Ibid.
9
(Noah, 2008, p. 3)
10
Ibid
11
Ibid
2. What are natures and types of employee participation?
3. What are causes of poor employee participation in decision-making?

1.4 Basic research Objectives

1.4.1 General objectives

The central objective of the study is to investigate the workers participation in management
decision making of the yeka sub city Construction and House Development enterprise.

1.4.2 Specific objectives

The specific purposes of the study are:

1. To assess the present situation of the workers participation in management decision


making in yeka sub city Construction and House Development enterprise.
2. To identify the nature and types of participation in decision making and motivation
system.
3. To identify the causes of poor participation in decision making.

1.5 Significant of the Study

The study significant is anchored on the need to raise the productivity level of workers through
appropriate motivational techniques. The involvement of workers in management decision
making is considered as a means for inducing motivation in the workers leading to positive work
attitude and high productivity.

The study is also deemed desirable in view of the benefits of worker participation to organization
and the society at large. Worker participation has been seen as capable of providing workers
conducive work environment, opportunity to exercise their innate potentials and willingness to
pursue corporate goal of the organization.

The thesis offers practical benefits for companies that attempt to introduce direct and indirect EP.
The findings of this study will provide a better understanding of the factors that influence the
effectiveness of EP and the role and contribution of management, union, and employees to EP
initiatives.

1.6 Scope of the study

The study will bound in the period of May 2014 -July 2014. The issues in this study discusses
are limited to the assessing the present situation of WPM and type of WP methods. Beyond these
issues, like the correlation between WPM and productivity, Significance level of motivation to
EP, the factors affect WPM and their significant relation, and likes are left for future study. The
study only covered and addressed among public service sector, YCHDO of the yeka sub city,
Addis Ababa.

1.7 Methodology and study design

1.7.1 Research Design


The study will employ a descriptive research method and survey study approach for the purpose
of conducting an empirical investigation to the issue of worker participation in management
decision making in the public sector work environment.

1.7.2 Population and sample size


Yeka sub city construction and house development (YCHDO) has 100 employees including the
management staff and head office officer of the sub city. To calculate sample size the maximum
sample size at 95% Confidence level and a 5% tolerable error and 10 % non-response rate would
have been considered but we do not get standard deviation and to use the recommended 50%
Standard deviation12 the sample size will be greater than the population. Hence, the researchers
will conduct a questionnaire involving 58 employees, which are 60% of the population of each
branch and total employee.13 The sample frame includes all branches. Benefit for having a
sample of both employees and managers as it is allowing the researcher collects information
from both the sides. The sample will fairly covers all the employees and managers of the unit.

1.7.3 Sampling technique


The sampling technique in this research will be purposeful as it is suitable for all sizes and the
cost is low (Lewis et al, 2007). The sampling includes the most important people whose have the
power and influence in that organization. Employees in the Yeka sub city construction and house
development office will be selected and the individual employee is the unit of analysis for this
study. As the purpose of this study is to examine EPM, individuals with that would allow them
the opportunity to participate in decision making (Scott & Bruce, 1994) selected, hence, the
selection of employees from bottom to top level management staff included.

1.7.4 Data source and collection Method

Main data will collect both through the primary and secondary sources. For primary sources of
data the questionnaire data collection tool was develop while secondary sources will be gathering
from literature, company records, bulletins and other official documents. The adoption of these
tools helped to collect both quantitative and qualitative data. Then the researcher will find
explanation and description on employee involvement and participation. Further the research aim
to compare the secondary data with the finding of the primary data to find out the reality of the

12
(Fox, Hunn, & Mathers, Sampling and Sample Size Calculation , 2009)
13
Commonly recommend to use sample size 60%-70% of the population and some scholar also recommend in
social science research, if standard deviation is not given, 20%-30% of the population might be enough to conduct
the study.
situation. The questionnaire was in three sections – the first contained questions on respondent‘s
personal data, the second on the level of worker participation while the third is on worker
participation structures.

1.7.5 Method of data Analysis

All the results will be entering into the computers using Ms Excel windows application program
for analysis. Descriptive statics analysis method will be used. Simple static measurement tools of
measure of central tendency will be used and will aggregate accordingly.

1.7.6 Delimitation of the study

The time-span of the study is limited, and therefore time and resources might restrict. The other
limitation can be to get response from all the employees. The other problem could be time
consuming to analyze the data.
Chapter Two
2. Literature Review
2.1 Introduction

Yet, an increasing number of IR scholars focused attention on the fact that worker participation,
and mainly nonunion representation on the firm level, also has a fundamental economic value. It
can be argued sustainable successful worker participation on the firm level has to meet
employers and employees interests: in this view enhanced organizational productivity and
performance are aligned with an improvement of the ‗‗social good‘‘ for workers in terms of
higher wages, improved working conditions, and increased job security. After all, only
companies with sustained productivity and profitability are able to ensure further enhancement of
workers‘ conditions. 14

Since the time the concept was defined by Sidney Webb and Beatrice Webb in their book
Industrial Democracy as a right of workers to participate in decisions on issues which concerned
them, any matter where workers exerted influence was deemed to be participation. Wages and
working conditions were considered to be legitimate areas of employees‘ concern, but the
question naturally arose about the limits of these concerns. In Ethiopia, it is easier to ask what
does not interest the worker or what does not affect his work. Where the organization is
concerned, everything – from its products and processes, its machines and their maintenance, to
the markets, finances, or managerial remuneration in the enterprise – is of concern to employees.
These concerns, however, vary, depending upon the circumstances. Again, all concerns do not
interest all workers equally all the time. 15

In stable- economic conditions, with assured markets and steady profits, employees may be
content to count only their weekly pay packets. However, once markets change, organizational
performance declines or lay-offs and retrenchments start, employees become concerned with
every aspect of the organization.

Broadly speaking, the range of issues in any enterprise on which decisions need to be taken from
time to time can be classified under five major heads: safety and welfare issues; work-related
issues (production on the shop floor, quality, machine maintenance); sharing of gains (wages,
incentives, allowances); production-related issues (product-mix, plant production targets,
technology) and; business policy (expansion, contraction, pricing). Even the most reluctant
managers agree that workers should have some say in the first three categories, although there
may again be doubts about the second category. The third category obviously gives workers
some influence through the process of collective bargaining, wherever it exists. There is,

14
(Looise, Torka, & Wigboldus, 2011, p. 89)
15
(Sen, Employee participation in India , 2012, p. 1)
however, much difference of opinion as far as the last two categories are concerned (Sen, 2010,
p. 367).

Participation is the mental and emotional involvement of people in group situations that
encourages them to contribute to group goals and share responsibility for them. There are three
important ideas regarding participation in decision making-involvement, contribution and
responsibility. Firstly, participation means meaningful involvement - rather than mere muscular
activity. A second concept in participation is that it motivates people to contribute. They are
empowered to release their own resources and creativity to achieve the objectives of the
organization. Participation especially improves motivation by helping employees understand
their paths towards goals. Finally, participation encourages people to accept responsibility for
their group activities. It is social processes by which people become self involved in an
organization and want to see it work successfully (Newstrom & Davis, 2004). 16

Employee participation is a very important component of operating for the future enterprise.
Participation is helping management to decide in selecting the courses of action in enterprise. It
gives the employee an opportunity to express their viewpoints about action. Participating in goal
setting, the employees can play a vital role in achieving business target. Workers can select their
work schedules which ensure workforce diversity in organization. If the enterprise selects
payment and overtime system according to the employees‘ opinion, it increases productivity of
them. Therefore, employee participation has a positive effect on performance and motivation. 17

The Ethiopian labor legislation has nothing like the forms of ‗worker representation' that
characterize the systems of many European countries. At the workplace level, trade union
delegates may represent workers. The Constitution recognizes the right to freedom of
association, the right to form and join a trade union and the right to participate in trade union
activities.18

The Ethiopian Labor Proclamation states that one of its central objectives is to promote
collective bargaining as a means of maintaining industrial peace and of working in the spirit of
harmony and cooperation towards the all-round development of the country (Preamble). De
facto, collective bargaining takes place at the company level, even though the approach of the
Labor Proclamation is different and leaves the choice of the appropriate level of collective
bargaining to the parties and their judgment. According to Article 130, any party may request the
other party in writing. There are an estimated 450 collective agreements in Ethiopia, mostly
dealing with subject matters as benefits and increments (information given by the Ministry).19

16
(BHUIYAN, 2010, p. 122)
17
(BHUIYAN, 2010, p. 123)
18
(Sommer, 2004, p. 17)
19
(Sommer, 2004, p. 20)
2.2 Theoretical back ground of WPM

2.2.1 Introduction

James, Debra and Laurie (2006) reported that while participation in workplace decision making
may have positive effects on employees‘ attitudes toward their work, it may have less impact on
employee performance. In addition, the cost of implementing participatory management systems
may far exceed the actual return. As John W. Budd (2004) stated that

There can no more be democratic self-government in industry without workers


participating therein than there could be democratic government in politics without workers
having the right to vote…The right to bargain collectively is at the bottom of social justice for
the worker, as well as the sensible conduct of business affairs. The denial or observance of this
right means the difference between despotism and democracy.20

However, the commentators provide numerous professional examples to suggest that


participation in workplace decision making in government setting not only improves employees‘
attitudes toward work, but also increases their performance. Changes in the nature of
organization and task environments, employees‘ desires to participate in workplace decision
making, as well as rapid advances in technology facilitating such exchanges, may make
participation an even more important determinant of performance in the future.21

In the practice of decision making (Kneeland, 1999) and meeting management (Doyle & Straus,
1976) there is agreement that everyone engaged in a decision process or meeting should
understand his or her role. The ladder of decision making helps to define that role. The ladder
provides a way to articulate who makes the decision and offers employees more certainty about
how their input, which consumes their time and resources, will be used. From these benefits, the
ladder offers even greater benefit of improving the quality of decisions by incorporating
employee values, information and alternatives to the decision. It also increases the potential for
decisions to be implemented as employees help make and ―own‖ the decisions. In addition, the
ladder offers the possibility of reducing employee skepticism about executive decisions and
executive efforts to engage in employees‘ number one issue, time and resources.22

Connor P.E. (1992) identified that emphasized by being personally and meaningfully involved,
above and beyond just doing assigned tasks, employees are said to be more motivated and
productive. Hossain M N (1992) revealed that job security is a de-motivating factor. But the
study of Bashir et al (2003) reported that job security proves as a significant factor for both
government and non-government enterprise. Roethlisberger, Coch and French and others
conducted research on this topic. Their collective results suggested the general proposition that
participation tends to improve performance and job satisfaction (Coch, 1948). Later research in
organizations has repeatedly supported this proposition, as suggested by the authors of a

20
(Budd, 2004, p. 103)
21
(BHUIYAN, 2010, pp. 3-4 (125))
22
(BHUIYAN, 2010, p. 5 (126))
comprehensive review ―participation can have statistically significant effects on performance and
satisfaction (Wagner, 1994). Participative practices may also provide power opportunities earlier
to monitory workers in an increasingly diverse workforce, since such workers need not wait until
reaching higher organizational levels before being allowed to contribute meaningfully.
Participation also seems to help satisfy the awakening employee need for meaning and
fulfillment at work. The use of participative practices is noteworthy. The educational level of the
workforce often provides workers with unique capacities that can be applied creatively to work
problems. These employees also acquire a greater desire for influencing work- related decisions
and an expectation that they will be allowed to participate in these decisions (Newstrom &
Davis, 2004). 23

2.2.2 The meanings of industrial democracy (ID), employee participation (EP) and
employee involvement (EI)

If we study EP in the literature, we see that many writers use different terminology when
examining EP in the organization (Strauss, 1979; Hyman & Mason, 1995; Markey & Monat,
1997b; Drucker & Looise, 2001; Markey, R. et al., 2001; Blyton & Turnbull, 2004; Smith,
2006). According to Mitchell (1998:3) ‗the literature in this field is exceptionally voluminous,
diverse and multidisciplinary‘. For this reason, Salamon (1992:340) claims that EP ‗is a term
which does not have a universally accepted meaning‘. Even Pateman (1970:67) three decades
ago argued that ‗although the notion of participation is widely used by writers on management
topics it is, in many cases, left undefined, or if a definition is offered, that definition is very
imprecise‘. Since the definitions and concepts of participation discussed in the literature vary
widely, a closer examination is warranted. A significant part of this literature review will explore
terms related to EP in order to understand the difficulties in concepts and terminology. 24

“Participation is an extremely plastic concept: it can be molded into many different forms, and
acquires a wide variety of meanings for different groups of social actors” (Knudsen, 1995, p5)

As Knudsen notes above, ‗participation is an extremely plastic concept‘. It is not surprising


therefore that the interpretation of EP differs in different paradigms such as the organizational
behavior and/or human relations schools, or in organizational studies, industrial relations and
human resource management (Dachler & Wilpert, 1978; Guest, 1989; Marchington, 1992;
Teicher, 1992; Heller et al., 1998; Strauss, G., 1998; Haim, 2002; Marchington & Wilkinson,
2005). The terminology of EP may vary from the industrial democracy (ID), EP to employee
involvement (EI) but the emphasis is still concentrated on this theme: to what extent does an
employee or their representative influence workplace decisions? (Strauss, 1979; Black &
Gregersen, 1997; Heller et al., 1998). Like Heller‘s argument, the Department of Employment
and Industrial Relations, Australia (1985 p1) also argues that different meanings of EP have been

23
(BHUIYAN, 2010, pp. 126-127; Ananymos, 2009, darft paper)
24
(Balakrishnan, 2007, p. 16)
recognised by different people but ‗the common thread running through them all is employees
having a greater say in the decisions affecting them at work‘.25

In Britain, Sidney and Beatrice Webb (1902) in their book Industrial Democracy drew attention
to the importance of the trade unions as an ideal for democratic (employee) organizations in
nineteenth century. This can be seen in their argument that trade unions ‗internal constitutions
are all based on the principles of government of the people by the people for the people‘ (Webb
& Webb, 1902: vi). That is to say, trade unions were seen to be established by workers through
democratic processes in order to represent workers‘ interests and rights in the industry. They
viewed ID as part of a process where the trade unions played a vital role in setting up wages and
conditions of employment through collective bargaining processes (CB) machinery, but without
interfering in management decisions.26

By contrast, the terms employee participation (EP) is seen as softer and more preferable
approach by some researchers and employers For example Davis & Lansbury (1996b) and
Strauss (1998) represent EP as broadly addressing a range of organizational forms and
managerial techniques in order to examine the scope of employee influence in the organizations.
Such EP involved both direct and representative forms of participation (Knudsen, 1995; Markey,
2001; Marchington, 2005).27

EP has been defined as ‗a process which allows employees to exert some influence over their
work and the conditions under which they work‘ (Strauss, G., 1998:15). Likewise, the
Department of Employment and Industrial Relations in Australia (1985:1) defined EP as
‗employees having opportunities to influence the decisions that affect them, their work and their
work environment‘. The above discussion of the EP concept emphasizes that employees and
their representatives could have some capacity to influence workplace decision making together
with the management. The decisions could cover a wide range of problems at all levels of the
organization, rather than only focus on distributive issues such as wages and working conditions
(Knudsen, 1995). 28

The term EI was also popularized when the ideals of human resource management (HRM)
spread out in the 1980s and 1990s to many parts of the world, particularly in developed countries
(Marchington, 1992). Under the rubric of HRM, EI became synonymous with issues concerned
management in involving employees in various EI techniques. Such techniques included quality
circles, team work, suggestion schemes and total quality management in order to maintain a
quality of product and services in the organizations. In general EI appears to represent the
manifestation of attempts by employers to find participative ways in which to manage and
empower their staff (Marchington, 2005; Marchington & Wilkinson, 2005).29

The term employee involvement (EI), refers to practices and policies where employees are
involved in programs which have been management initiated and directed. Good examples of EI

25
(Balakrishnan, 2007, p. 17)
26
Ibid p.19
27
(Balakrishnan, 2007, p. 23)
28
Ibid
29
(Balakrishnan, 2007, p. 24)
can be found in quality circles, total quality management, teamwork, and 5S and so forth
(Hyman & Mason, 1995; Davis, E.M. & Lansbury, R.D., 1996; Benson & Lawler, 2003;
Marchington, 2005). Under EI development, the workers have very limited capacity to influence
management decisions.30

In sum, as we can see from the above arguments that EP can be differentiated from ID, inter alia,
by the fact that managerial prerogatives remain firmly embedded in the organizational culture
and practices. EP then allows and enables employees and representatives to participate in a
variety of ways in elements of an organization‘s processes beyond the scope of employees‘
defined tasks in the production and exchange process. The employees and their representatives
(union) have limited influence on the management decision-making process, in part because of
constraints arising from the fact that managerial prerogatives are enshrined in the law. The
capacity and influence of employees and their representatives (union) in management decision-
making can be examined through the elements of EP: direct and indirect participation.31

2.3 Nature and types of WPM

The motivation content theories laid the foundation for the viewing of PDM relative to employee
motivation. PDM, as it relates to a higher level needs, draws from theorists like Maslow,
Alderfer, McClelland, and Herzberg as well as Douglas McGregor‘s Theory X and Y that
explicitly explains management‘s view of employees and its impact. Useful frameworks for
understanding employee motivation in the work place can be provided by reviewing
contributions of the need theories developed by these theorists. In today‘s modern organizations,
these need theories imply that higher level needs are responsible for motivating people and
interestingly, participating literature and research (Lunjew, 1994) has identified PDM to satisfy
these needs. 32

2.3.1 Forms of Worker participation in management

Industrial democracy is still a central theme in industrial relations (IR) debate and research.
Industrial democracy refers to worker participation in both its direct and indirect or
representative forms. Direct participation refers to employees‘ immediate communication,
interaction, and co-decision making with management, indirect participation to one or more
employees who act in a representative function for other employees in dealings with
management. This happens in a vast variety of organizational forms including committees,
councils, and unions (Kaufman & Levine, 2000; Taras & Kaufman, 2006). 33

30
(Balakrishnan, 2007, p. 2)
31
(Balakrishnan, 2007)
32
(Singh, January 2009, p. 21)
33
(Looise, Torka, & Wigboldus, 2011, p. 88)
Direct Participation

Workers may participate in decision making either directly themselves or indirectly through their
representatives – trade unions or elected employee representatives. Since the 1980s, there has
been a spread of direct participation by workers, if the term participation is understood as the
exercise of any influence on their work or how it is to be carried out. Thus workers may
―participate‖ in work-related decisions not only when there is an institution, such as a quality
circle, at the workplace. Accordingly, a simple exercise of work enrichment may be a form of
promoting direct participation of workers. 34

The type of mechanisms which can be included within direct EP are team briefings, house
journals (newsletters or bulletins), suggestions schemes, quality circles (QCs), total quality
management (TQM), 5s and ISO 9000 (Marchington, 1995, 2001). The basic point about this
form of participation is that employees participate directly, rather than through their
representatives (Delbridge & Whitfield, 2001; Binghay, 2002). 35

Direct participation may be integrated into decisions about daily work, or it may take place
outside daily work, such as in a voluntary quality circle that cuts across the group structure
habitually used. Direct participation may also be ―consultative‖ or ―deliberative‖; research by the
European Foundation for the Improvement of Living and Working Conditions has explored this
particular aspect in some detail (Regalia and Gill 1996). With consultative participation,
employees are encouraged and enabled, either as individuals or members of a group, to make
their views known, but it is up to management to accept or reject their proposals. Deliberative
participation, on the other hand, places some of traditional management responsibility in the
employees‘ hands, as in the case of team working or semi-autonomous work groups wherein
some authority has been delegated to the workers.36

Marchington (1995, p283-286) categorizes direct participation forms by the nature and direction
of the process:

downward communication from managers to their staff, the principal


purpose of which is to inform and ‗educate‘ employees, and is practiced via
written reports to employees, house journals, training videos, team
briefings.

Upward problem-solving, which is designed to tap into employees‘


knowledge on an individual or collective basis through techniques such as
suggestion schemes or quality circles.

34
(Muneto & Anne, 2011, p. 1)
35
(Balakrishnan, 2007, p. 32)
36
(Muneto & Anne, 2011, p. 2)
Self-directed work teams, which aims to encourage employees to take
greater responsibility for decision-making.37

Team briefings involve a small number of employees meeting with the line managers on a
regular basis (Marchington, 2001). For example, sometimes team briefings will be conducted
every morning or afternoon before daily work or a shift starts (Marchington & Wilkinson, 2005).
In this manner, employees hear directly from the line manager or supervisors on the latest
developments at the company. Line managers are responsible for informing employees of any
issues related to work and for encouraging team spirit among the workers (Morehead et al.,
1997). The information is passed from senior management through supervisors or charge hands
to non-managerial employees (Marchington, 2001). 38

Formal meetings are another form of direct face-to-face communication between managers and
employees (Morehead et al., 1997). These include departmental meetings and mass meetings.
The departmental meeting represents the bottom end of the communication chain and enables the
departmental managers to pass on information which they received from the higher level of
management to the employees, as well as taking up points and issues raised by members of their
own department (Markey, et al., 2001). Such meetings are fairly informal although they may
have pre-circulated agendas. The departmental meeting which takes place regularly is also useful
for the head of department to get a response from his staff or convey a message from the top
level management. Through this kind of meeting they can also tackle any immediate issues,
which are raised within the department (Morehead et al., 1997). Sometimes in the company there
are mass meetings between senior management and employees (Marchington, 1992). They
enable members of senior management to address the staff at a given location on specific issues.
They are not normally held very frequently and the opportunity for interaction between
management and employees is more limited than in departmental meetings. 39

Upward problem solving is designed to tap into employee knowledge and ideas, typically
through individual suggestions or through ad hoc or semi permanent groups brought together for
the specific purpose of resolving problems or generating ideas (Hyman & Mason, 1995;
Marchington, 1996).

Quality circles (QCs) comprise small groups of employees who work together to identify,
analyze and solve quality and work related problems (Marchington, 1992:86). Membership of
QCs is voluntary but once a QC is formed it will meet on a regular basis.

Total quality management (TQM) is another common upward problem solving method. It is
broadly defined as ‗a multifaceted management technique for enhancing productivity through
improving product quality and reorganizing the production process (Rothschild & Ollilainen,
1999:590). TQM is also closely related to quality, customer focus, and continues improvement.
Indeed, one of the reasons TQM is implemented in the organizations is to achieve successful
business performance.

37
(Balakrishnan, 2007, p. 34)
38
Ibid
39
(Balakrishnan, 2007, pp. 34-35)
5S is an acronym for the first five letters of Japanese words that are Seiri, Seiton, Seiso, Seiketsu
and Shitsuke (Osada, 1991). Because these terms are perhaps a little much for non-Japanese, they
have been translated here as organization (Seiri), neatness (Seiton), cleaning (Seiso),
standardization (Seiketsu) and discipline (Shitsuke) (Hirano, 1995). In a country such as
Malaysia, even these terms are translated into Malay language, such as ‗asingan’ (Seiri), ‗susun’
(Seiton), ‗pembersihan’ (Seiso), ‗penjagaan’ Seiketsu and ‗amalan’ (Shitsuke) (Hussin &
Parasuraman, 2001 p46). 40

Indirect participation

Indirect EP refers to policies, programmes, practices and procedures where employees


participate in the process of management decision-making, not directly but rather via their
representatives. Such representatives are typically elected from employee groups, often but not
always unions (Nel, 1984; Davis, & Lansbury, 1996b; Strauss, 1998). Strauss has argued that
some higher level decisions such as mergers and acquisitions of the company, and sale of the
company may be discussed with a body representing the employees. This contrasts with the
direct participation process where decisions are taken to changes to the way work is undertaken
(Strauss, 1998). Strauss (1998) further asserts that in terms of decision making within the
department or inter-departmentally, certain decisions which cannot be made by supervisors, such
as those which involve major restructuring of the company. These would be appropriately
discussed at a higher level with an employee representative institution, such as joint consultation
committees (JCCs) or Works Councils.41

Joint consultation committees (JCC) are one of the forms of indirect participation where
committee members are the workers‘ and management representatives who work jointly together
(Clegg, 1960). Based on the empirical research conducted in the UK, Marchington et al. (1992)
described the process of JCC as

A mechanism for managers and employee representatives to meet on a regular


basis, in order to exchange views, to utilize members’ knowledge and
expertise, and to deal with matters of common interest which are not the
subject of CB (Marchington et al., 1992 p11).

From the above quotation, we can see that JCCs are actually a mechanism where employee
representatives and management might discuss many issues which have an impact on both
parties; employees and management.42

Collective bargaining (CB): In 1986, the International Labor Organization (ILO) adopted
Convention 154, which gave an operational definition of CB. ILO defined CB as

All negotiation between employers (employers’ organizations) and workers’


organization for the purpose of determining terms and conditions of

40
(Balakrishnan, 2007, pp. 36-39)
41
(Balakrishnan, 2007, p. 41)
42
(Balakrishnan, 2007, pp. 42-43)
employment and / or regulating relations between them (International Labor
Organization, 1986 p1-2)

The objective of CB is to decide on agreed terms and conditions of employment and the ways in
which employment issues such as individual grievances, collective disputes and disciplinary
matters are to be resolved at the workplace, company and national levels. CB is actually a joint
negotiation between the management and trade union.43

Trade or Labor Unions: The word trade union used in Britain while labor union used in
American language. Trade union is an organized association of workers in a trade, group of
trades, or profession, formed to protect and further their rights and interests.44 Unions are
portrayed as powerful organizations, often corrupt, that at best benefit their members at the
expense of nonmembers and the society at large, and at worst really only serve the interests of
union bosses.45 Most countries union is divided in to two categories: Private sector labor union
and Public worker labor union. As studies by Bruce Western, Jake Rosenfeld, and others have
demonstrated, strong unions help boost wages and reduce economic inequality, even for workers
who are not members. In the political sphere, a stronger labor movement might have helped
block tax cuts benefitting the rich or worked to bring about responses to the 2009 recession that
benefitted ordinary Americans more than just the very rich and the bankers who sparked the
crisis in the first place.46

Are the characteristics of unionized workers or city functions markedly different from nonunion
workers or functions? How do public sector union workers differ from private sector union
workers? Are union and nonunion differences in characteristics of workers greater in the public
than in the private sector? Money scholars trying to give answer for the above questions. Richard
B. Freeman provides the following results. (1) The public sector unionists have higher wages
than their nonunion peers, though with a smaller percentage advantage than unionists have in the
private sector;

(2) The in the government as well as in the private sector, unionists have markedly lower wage
dispersion than do nonunion workers;

(3) In the public sector union members are modestly older than nonunion members, whereas in
the private sector they are 4.5 years older on average, indicating in part the greater inability of
private sector unions to organize new plants and younger employees;

(4) In the public sector over half of union members are college graduates (reflecting in large part
organization of teachers) with union employees better educated than nonunion employees, while
union members are markedly less educated than nonunion members in the private sector;47

43
(Balakrishnan, 2007, p. 46)
44
Concise oxford English dictionary –(tenth edition), 2001
45
(Ananymos, 2009, darft paper)
46
Alexis N. Walker, HOW U.S. LABOR LAWS HAVE DIVIDED PUBLIC AND PRIVATE SECTOR
WORKERS AND UNDERMINED UNION CLOUT, Cornell University, scholars strategy network SSN
47
Richard B. and Casey I. et al, 1988, When Public Sector Workers Unionize, University of Chicago Press,
p. 365 – 398: http://www.nber.org/books/free88-1
In Ethiopian context, the private sector govern through the labor proclamation no. 377/2006
(amendment Proclamations No. 466/2005 and 494, 2006) and Federal Civil Servants
Proclamation (Proclamation No. 515/2007) for the civil service.48 Even though the civil code
gives permission government workers to participate in MDM the essential public services are
strictly banned from any union and bargaining movements.49

2.3.2 Level of Worker participation in management

It is possible at all levels of management; the only difference is that of degree and nature of
application. For instance, it may be vigorous at lower level and faint at top level. Broadly
speaking there is following five levels of participation:

1. Information participation: It ensures that employees are able to receive information and
express their views pertaining to the matters of general economic importance.
2. Consultative participation: Here works are consulted on the matters of employee welfare
such as work, safety and health. However, final decision always rests at the option of
management and employees‘ views are only of advisory nature.
3. Associative participation: It is extension of consultative participation as management here is
under moral obligation to accept and implement the unanimous decisions of employees.
4. Administrative participation: It ensure greater share of works in discharge of managerial
functions. Here, decision already taken by the management come to employees, preferably with
alternatives for administration and employees have to select the best from those for
implementation.
5. Decisive participation: Highest level of participation where decisions are jointly taken on the
matters relation to production, welfare etc. is called decisive participation. 50

2.3.3 Element of Worker participation in management

The term ―participation‖ has different meanings for different purposes in different situations.
McGregor is of the view that participation is one of the most misunderstood ideas that has
emerged from the field of human relations. Keith Davis has defined the term ―participation‖ as

48
Civil service the governed body of the civil servant and ―Civil Servant‖ means a person employed permanently by
federal government institution (Federal Civil Servants Proclamation No. 515/2007) these institution can be sate
police, Firefighter, Sanitary, telecom, Electric power corporation,, Public Welfare provider Hospitals, etc as well as
employee of government in state and local government.
49
Ibid. Art. 136(2). ―Essential public services‖ means those services
rendered by undertakings to the general public and includes the following:
a. air transport;
b. undertakings supplying electric power;
c. undertakings supplying water and carrying out cleaning and sanitation services;
d. urban bus services;
e. hospitals, clinics, dispensaries and pharmacies;
f. fire brigade; and
g. telecommunication;
50
(MUTIZWA-MANGIZA, 1991, p. 10)
the mental and emotional involvement of a person in a group situation which encourages him to
contribute to group goals and share responsibilities in them. This definition envisages three
important elements in participation. Firstly, it means mental and emotional involvement rather
than mere physical activity; secondly, participation must motivate a person to contribute to a
specific situation to invest his own resources, such as initiative, knowledge, creativity and
ingenuity in the objectives of the organization; and thirdly, it encourages people to share
responsibility for a decision or activity. Sharing of responsibility commits people to ensure the
success of the decision or activity.51

2.4 Employee involvement practices/ approaches

According to Ang (2002) the idea of employee involvement is still developing although there is
large amount of research done in the last decade still there is not any developed ways to use
employee involvement as a management approach. The management approach depends how the
employer wants to involve their employee in different operation. According to Lawler et al
(1998) the most important factor of employee involvement approaches is how it can represent
comprehensively in the process of problem solving, sharing information, rewards for
performance and developing knowledge and ideas. He further says that in order to implement
these practices the organization needs a particular employee involvement program. 52

Traditional versus current perspective

There is a significant difference between the current and the traditional way of employee
involvement and participation. According to Gary and Sisson (1994) the traditional way is
mostly indirect participation and limited direct participation. Further indirect participation
includes trade union and work council and direct participation was limited to improve the quality
of the work to counter turnover and absenteeism. He further explains that current employee
participation is more direct as it concern with improve the performance of the organization that
can be linked with the objective of the organization like customer satisfaction. The types of jobs
in the current environment is changing as more and more company recruiting part time
employees and they need to adopt different strategy to involve them in the process.53

Representative participation

According to Apostolou (2000) one of the main ways to achieve representative participation is
joint consultation where employees' elected representative to discuss with the management on
various issues which concern them. These processes give the employees an opportunity to
influence the proposal before it is finally made. Further Judge and Generd (2004) explain that,

51
From the web site http://www.whatishumanresource.com/levels-and-forms-of-workers-participation- in-
management accessed date 6/10/2014
52
(Ananymos, 2009, darft paper, p. 4)
53
(Ananymos, 2009, darft paper, p. 5)
joint consolation involves seeking acceptable- solutions to problem through a genuine exchange
of views and information. Employee communication is concerned with the interchange of
information and ideas within an organization.54

Direct, indirect and financial participation

In 1999 Oosthuizen and du Toit classify the employee involvement and participation practice as
direct, indirect and financial. Direct participation is the communication between the management
and the employees regarding different function of the organization like decision making process
to problem solving. Whereas in indirect participation the employees are involve through their
representatives who are elected leaders. Financial participation is the economic participation of
the employees in the success or failure of the organization through share ownership, profit
sharing scheme.

Marchington et al (1992) talk of direct and indirect employee participation practices the direct
participation consist of downward communication from management to employees which
includes team briefing, workplace wide meeting ,staff newsletters and cascading of information
down via the management chain.55

Downward Communication from Managers to Employees

According to Marchington et al (1992) the downward involvement technique is used to inform


employees of management plans. The management can use different ways to do that. Regular
and continuous distribution of the company reports, journal, company publication and videos are
the effective way to inform employees about the development of the company. Team briefing
and regular team meeting is another ways for the top management to aware the employees about
the organization news and development.56

Upward involvement

Marchington et al (1992) explain the other way of direct communication which are upward
problem solving communication practices and that includes suggestion schemes, employee
attitude surveys, and employee groups established to solve specific problems or discuss aspect of
performance or quality and suggestion scheme. Further Taily et al (2003) outline the importance
of employee's attitude survey and it can be done through questionnaire to a sample of employees
to find out their views about different factors of the work. He further explain that formal
processes like suggestion scheme can be put forward to find out employees thinking on different
issues like quality improvement to enhance performance. 57

54
Ibid
55
Ibid
56
Ibid
57
(Ananymos, 2009, darft paper, pp. 6-7)
Financial participation

Financial participation is one of the best direct and tangible forms of employee involvement. The
financial participation allows the employee to be a part of the financial success and failure of the
organization. This will encourage the employees to show greater commitment and encourage
them to take extra responsibility. Further, it is argued that a financial stake gives employees
increased enthusiasm for the success of the organization. In its most developed form employee
share ownership means that employees become significant shareholders in the business or even
their own employer (Judge and Gennard, 2005). Financial employee involvement scheme can be
carried out in three ways and that is profit sharing, profit related pay and share ownership. 58

Profit sharing

According to Judge al (2004) profit sharing methods can help to build a motivated and
committed workforce. Further Taily et al (2004) explains that these schemes encourage
employees to work as a team rather than individual as the rewards for working together is more
than working individually. Profit sharing scheme ensure that employees benefit from an
organization that makes profits. 59

Profit related pay

Taily et al (2003) explains that profit related pay scheme where employer rewards the employees
for their contribution to the business. Further he outlines that it works where a group of people
get pay to the profit of the business for their work. This kind of scheme generally found in the
sales business where there is bonus for achieving the target. This scheme can increase the
motivation and commitment of the employees. 60

Share ownership

Judge et al (2004) stated that latest way of financial participation of the employees is share
ownership where the employees are owner of some part of the company through share. It means
that they have shareholder's right. Further Apostolou (2000) stated that it produces interest
among the employees about the company matters. In UK one of 5 employees have share
ownership in their company .This kind of schemes seeks long term commitment from the
employees and its take the employee involvement in a new stage where employees are promoting
to some part of the ownership of the company. Owing share makes the employees more
motivated and committed as the loss or the profit directly have an impact on them. 61

Task based participation


58
Ibid
59
Ibid
60
Ibid
61
Ibid
Task based participation is mainly to the job and an integral part of day-to-day life. It is all about
perform the task in the same level or higher level, which can be managers or supervisor. 62

Team working and self management

Teamwork one of the important ways of employee involvement described by Pfeiffer's (1998) as
it is one of the seven key HRM practice. It allows employees to take extra responsibility for the
task, without direct supervision, to have discretion over work method and time, to multi skill and
to recruit team members. Managerial control is at its most subversive and effective when
employees take on responsibility for peer surveillance (Marchington and Wilkinson 1998)63

Controversies

The arguments and counter-arguments on participation do not appear to end with the depth of
involvement and issues for discussion. Three other controversies have emerged in India over
relatively simple problems:

Collective bargaining versus workers’ participation: - The Ethiopian labor legislation has
nothing like the forms of ‗worker representation' that characterize the systems of many European
countries. At the workplace level, workers may be represented by trade union delegates. Unions
have in general sought to promote collective bargaining rather than participation.

Statutory versus voluntary participation: - This controversy also touches the question of
whether participation needs to be institutionalized or structured through permanent bodies.

Trade union versus direct worker representation: - These are also issues which have bothered
managers, unionists, workers and the government during actual practices. Advocates of union
representation contend, on the other contrary, that workers are less knowledgeable and would not
be able to participate fully with representatives of management, who would be able to
manipulate them. 64

62
(Ananymos, 2009, darft paper, p. 7)
63
(Ananymos, 2009, darft paper, p. 7)
64
(Sen, Employee participation in India, 2012, p. 10)
Chapter three

3. Data finding and discussions


3.1 Introduction

The study set out to assess the present situation of the workers participation in management
decision making in Yeka sub city Construction and House Development office, to identify the
nature and types of employee participation in decision-making and to identify the causes of poor
employee participation in decision-making. The respondents included from lower level to top
level officer. This chapter presents the findings from the study.

3.2 Background Information on the Respondents

Majority of the respondents are males, comprising 62.5% of the given sample. The demographic
profile of this study‘s sample shows that slightly more than half (56.5%) of the respondents‘
gender is similar with their superior, while 43.5% were different.

3.2.1 Age of Respondents


Table 1 Distribution of respondents’ academic
Table 2 Distribution of respondents’ age, by sex qualifications, by sex

Frequency Frequency Tota


Age Qualification
Male Female Male Female l
20-25 5 5
26-30 3 4 1-12the 0 0 0
31-35 18 3 Diploma (level) 5 5 10
36-40 2 5 Under graduate 27 12 39
41-45 5 3 Post Graduate 6 3 9
46-50 0 0 other 0 0 0
50-60 5 0 Total 38 20 58
Above 60 0 0
Total 38 20

TABLE- 1 show that majority of the male respondents were aged between 31-35years. The
women respondents were aged between 25-40 years. Some (five) male respondents were found
to be above 50 years of age, unlike their female counterparts.

3.2.2 Academic qualification of Respondents

TABLE- 2 shows that majority of the respondents had an undergraduate degree with eleven
respondents having a master‘s degree.
3.2.3 Work experience of Respondents
Table 4 Distribution of respondents’ experience Table 3 Distribution of respondents’ Position, by
By sex experience (tenure) and sex

Frequency Total Frequency


Year Position Tenure Total
Male Female Male Female
2-4 2 3 5 Top level 9-10 8 3 11
4-8 22 10 32 Medium Level 4-8 29 15 44
8-11 8 3 11 Lower level 1-3 1 2 3
11-15 0 0 0 Total 38 20 58
15-20 0 0 0
Over 20 0 0 0
Total 32 16 48
TABLE- 3 shows that 67% of the respondents had worked in the office for a period of over four
years and that the next (22.9% of the respondents) tenure indicated eight to eleven years. Ten of
the respondents did not respond for this question.

Interestingly, TABLE- 4 shows that 76% of both the male and female respondents had a position
of medium management participation level.

3.2.4 Income of Respondents’, by sex


Table 5 Distribution of respondents Remuneration, by sex

Frequency Total
Remuneration
Male Female
Br.1000- Br.3000 27 10 37
Br.3001-Br. 5000 6 9 15
Br.5001-Br. 10000 1 0 1
Above Br.10000 4 1 5
Total 38 20 58
TABLE- 5 shows that 64% of the respondents got remuneration between Br.1000-Br.3000. And
71% of the male respondents were got this the first line remuneration.

3.3 Results

3.3.1 What is current situation of the workers participation in decision making in Yeka sub
city Construction and House Development office?

TABLE--6 reveals the distribution of employees according to their service experience. The
TABLE- shows that 89.6% employees are with more than four years‘ experience. 10.4% are of
less than four year‘ experience. The TABLE- shows the distribution of employees according to
their age. In this TABLE- 36.2% of the respondents are within 31-35 age range. Again 13.8%
and 8.6% respondents are 41-45 and 50-60 age range respectively. 12.1% of have lie down
between 26-30 ager and 36-45 ages. The TABLE- reveals the distribution of respondents
according to their educational background. 17% and 15.5% of the respondents are below and
above undergraduate level respectively and 67% of the respondents are undergraduates. The
TABLE- exhibits the distribution of employees according to their skill level. 63.8% of the
respondents have an income between Br.1000 and Br.3000. 25.9% of the respondents got
remuneration range of Br.3000-Br.5000 the rest 10.3% getting above Br.5000
Table 6 Distribution of respondents according to their service experience, age, educational status
and remuneration.

Variables Range Frequency % of the respondents


Experience 1-4 year 5 10.4%
4-8 years 32 66.7%
8+ years 11 22.9%
Age 20-25 year 10 17.2%
26-30 year 7 12.1%
31-35 year 21 36.2%
36-40 year 7 12.1%
41-45 year 8 13.8%
46-50 year 0 0.0%
50-60 year 5 8.6%
Above 60 year 0.0%
Educational Status 1-12th 0 0.0%
Diploma (level) 10 17.2%
Under graduate 39 67.2%
Post Graduate 9 15.5%
other 0 0.0%
Remuneration Br.1000- Br.3000 37 63.8%
Br.3001-Br. 5000 15 25.9%
Br.5001-Br. 10000 1 1.7%
Above Br.10000 5 8.6%
Table 7 Distribution of respondents by Frequency of level in the decision making with
management.

Decision making level Frequency % of the respondents


Top level 44 75.9%
Middle level 11 18.9%
Lower level 1 1.7%
Workers level 2 3.5%
Total 58 100%
TABLE-7 shows the distribution of employees according to their opinion in level of managerial
decision making. According to the opinion of the respondents 75.9% decision making are held at
top level. On the other hand 18.9% and1.7percentage decision making occurs in middle and
lower level respectively. Again the results show that the workers level participation is only 3.5%.
Table 8 Distribution of respondents by direct participation in decision making process.

Participation Activities % of the respondents


Managerial activities 0.25%
Goal setting 0.25%
Other activities 5.00%
Total 3.5%
Note: Here show the 3.5% workers level participation.

TABLE- 8 exhibits the direct participation in different level of decision making. According to
the respondents, 5% participate in other activities. Again 0.25% workers participate in both goal
setting and managerial activities.
Table 9 DISTRIBUTION OF RESPONDENTS BY MOTIVATIONAL ACTIVITIES

Participation in Activities Frequency % of the respondents


Bonus 0 0%
Transport facility 53 83.33%
Housing facilities 0 0%
Canteen facility 0 0%
Medical facility 11 16.67%
Total 64* 100%
*Note: The total number increased to 64 because of more than one possible answer. The
percentage calculated using the new total number.
TABLE-9 exhibits the motivational activities for the workers of YCHDO. 83.33% of the
respondents feel that they have participation in transport facility. Only 16.67% of the
respondents have participation in medical facilities.
Relationship of Variables with involvement in management decision making.

Table 10 Relationship between Respondents Educational Level and participation in Management


Decision making.

Involvement in decision making.


Educational Level Total
Top Medium Lower Worker level
1-12th 0 0 0 0 0 (100%)
Diploma (level) 9 (90%) 0 (0%) 0 (0%) 1 (10%) 10 (100%)
Under graduate 32 (82%) 5 (13%) 1 (3%) 1 (3%) 39 (100%)
Post Graduate 3 (33%) 6 (67%) 0 (0%) 0 (0%) 9 (100%)
other 0 0 0 0 0 (100%)
Total 44 (75.90%) 11(18.90%) 1 (1.70%) 2 (3.50%) 58 (100%)

Table 11 Relationship between Respondents age and Involvement in Management Decision making.

Involvement in decision making.


Age Total
Top Medium Lower Worker level
20-25 year 10 (100%) 0 (0%) 0 (0%) 0 (0%) 10 (100%)
26-30 year 5 (71%) 1 (14%) 0 (0%) 1 (14%) 7 (100%)
31-35 year 16 (76%) 4 (19%) 0 (0%) 1 (5%) 21 (100%)
36-40 year 1 (14%) 5 (71%) 1 (14%) 0 (0%) 7 (100%)
41-45 year 8 (100%) 0 (0%) 0 (0%) 0 (0%) 8 (100%)
46-50 year 0 0 0 0 0 (100%)
50-60 year 4 (80%) 1 (20%) 0 (0%) 0 (0%) 5 (100%)
Above 60 year 0 0 0 0 0 (100%)
Total 44 (75.9%) 11 (18.9%) 1 (1.7%) 2 (3.5%) 58 (100%)

Table 12 Relationship between Respondents Job position and Involvement in Management


Decision making.

Involvement in decision making.


Job position Worker Total
Top Medium Lower
level
Top Level 10 (91%) 1 (9%) 0 (0%) 0 (0%) 11(100%)
Medium 31 (70%) 10 (23%) 1 (2%) 2 (5%)
Level 44(100%)
Lower Level 3 (100%) 0 (0%) 0 (0%) 0 (0%) 3(100%)
Total 44 (75.9%) 11 (18.9%) 1 (1.7%) 2 (3.5%) 11(100%)
3.3.2 What are natures and types of employee participation?

Table 13 Different methods available to participate in MDM as perceived by the


respondents

Percentage of the
Perceived methods available to Rank order
respondents who hold the
participate in MDM
views
Face to face communication 22.9% 1
Team work 22.9% 2
Labor Union 22.9% 3
TQM 13.6% 4
Formal meeting 9.3% 5
Collective bargaining 4.2% 6
Management union Counsel 4.2% 7
5S (kaizen) 0.0% 8
Informal Meeting 0.0% 9
Jointly consulate counsel 0.0% 10
Other (If any please specify) 0.0% 11

TABLE-13 exhibits that the respondents identified 7 (seven) methods of participation in the
organization. The highest percentages of the respondents feel face to face communication, team
work, and labor union. The respondents mighty have confusion about the labor union we will
discuss later in discussion section.

3.3.3 What are causes of poor employee participation in decision-making?

Table 14 Causes of poor participation in decision making as perceived by the respondents

Percentage of the
Perceived causes of poor participation in Rank order
respondents who hold the
decision making
views
Absence of willingness of management 37.84% 1
Absence of labor union activities 28.83% 2
Illiteracy of the workers 18.92% 3
Political grouping among the workers. 9.91% 4
Other 4.50% 5
Lack of workforce diversity 0.00% 6
The result (TABLE-14) exhibits that the respondents identified 5 (five) important causes of poor
participation in decision making. The highest percentages of the respondents feel that absence of
willingness of the management is the most important cause. Next in the order of importance is
the absence of labor unions activities, illiteracy of the workers, political grouping among the
workers and other causes like wage and salary incentive scheme of the government.

3.4 Discussion

The study attempts to describe the present situation of worker participation in management
decision making in Yeka sub city Construction and House Development office, to identify the
nature and types of employee participation in decision-making and to identify the causes of poor
employee participation in decision-making.

The result is, as TABLE-7 shows that the highest decision making occurs at top level of YCHDO
and there is only 1.7 % worker participation in decision making at the lowest managerial level.
3.5% of the worker feels in worker level decisions are made. Among these 3.5% worker their
direct participation includes (TABLE-8 reveals), 5% workers directly participate in other
activities than managerial while 5% workers participates in managerial activities and in goal
setting activities.

TABLE- 9 shows that the motivational activities such as transport facility and medical facility
are used for the workers of YCHDO. But there is no indication of other benefits like housing
facilities which is practiced in some other public service areas.

On the factors which could influence employee involvement in management decision making.
Tables 10 to 12 show the relationship between education, age and job position and respondents
level of involvement. TABLE- 10 shows that the 82% (32) of undergraduates and 90% diploma
holders are feel that decision are made at top level management. It somehow different for 67% of
postgraduate, they feel the decision are made also in medium level. But none of the postgraduate
feels that the decisions are held in worker level. It is not evidenced from these findings that an
individual‘s educational qualification could influence the level of involvement he could exercise.

TABLE- 11 describes the relationship between workers age and participation practice in
management decision making. 100% of elder (41-45 age) and younger (20-25 age) feel decision
are made in top management. 71% of age 36-40 considers participation of middle level workers
in decision making. We can say almost all age workers are believed that the decision to be made
in top level.

TABLE-12 relation revealed 100% of who are in lower position thought decision are held in top
arena. Surprisingly 91% top level workers also have the same thoughts.

The results exposed in TABLE-13 show that the respondents of YCHDO have identified 7
(seven) practical methods to participate in worker participation in decision making. These are
face to face communication, team work, labor union, TQM, Formal meeting, Collective
bargaining, Management union Counsel. The case of labor union has confusion for the
respondents this can investigate between the table 12 and 13 ones they said the causes for poor
participation is labor union (LU) beside they also describe LU as practical participation method
available in their organization.

The nature and the role of the civil service in Ethiopia are sufficiently elusive that analysis of the
governmental policy-making process tends to focus on the extremes of party politics or the
bureaucratic policy-making process, neither of which, in isolation, can reveal the real decision-
making process. Analysis of governmental decision-making must focus more on the relation
between politicians and civil servants65. Civil servants have enormous power to influence
politicians and are able to neglect their minister's instructions. Their influence can be reflecting
through public labor union. Most countries have permitted and bind by law the civil servant right
in freedom of expression and unionization. Organized labor in America increasingly consists of
government employees, and government employees increasingly belong to unions. Collective-
bargaining laws gave government workers powerful incentives to join unions.66

Early Ethiopian labor union CELU consists of the government employees like the Ethiopian
airlines, Wonji Sugar plantation, Addis Ababa Fiber Mills, Indo-Ethiopian Textiles and General
Transport (also known as the Anbesa Bus Company) workers.67 Presently except some of the
government profit making companies (developmental enterprises), there are no unions for civil
servant. The Ethiopian civil code has nothing to say about participation or representation even
the labor code gives right to representation and less detail about participation. The, USA68, UK69,
Croatia70, Greek71,... civil code define well the freedom of expression and Trade Union Freedom
and Right to unionized for civil servant.

The Greek civil code Article 45 and 46 stated the following:72

Freedom of Expression
The freedom of the expression of political, philosophical and religious beliefs as
well as scientific views and in-service criticism of the acts of the supervising
authority constitutes a right for civil servants and is warranted by the State. No
discriminations are allowed against civil servants on the basis of their beliefs or
views or any criticism of the acts of the supervising authority on their part.

65
Kazumasa Okubo, July 2005, The Nature and Role of the Civil Service in Japanese Government Decision-
making, p 2
66
Daniel DiSalvo, The Trouble with Public Sector Unions, p 8-9, w w w. N a t i o n a l A f f a i r s . c o m f
67
Wikipedia, Trade union in Ethiopia, last modified on 18 March 2003.
68
Ibid, and, Morgan O. Reynolds, Labor Unions: The concise encyclopedia of economics
69
Kazumasa Okubo, July 2005, The Nature and Role of the Civil Service in Japanese Government Decision-
making.
70
CIVIL SERVANTS ACT, Official Gazette no. 92/2005 (courtesy of the British Council), Republic of Croatia.
71
Code of Civil Servants Law 2683/1999, OFFICIAL GAZETTE OF THE HELLENIC REPUBLIC
ISSUE No A/19/09.02.1999, Athens 2000, Greek
72
Ibid page 16
Civil servants are allowed to participate in the country’s political life pursuant to
the provisions in effect.
Trade Union Freedom and Right to Strike
The freedom to unionize and the unimpeded exercise of the associated rights are
guaranteed to civil servants.
Civil servants are free to establish trade union organizations, to become members
and exercise their trade union rights.
3. Strike constitutes a right for civil servants, exercised through their trade unions
as a means to safeguard and promote their financial, labor, trade union, social
and insurance interests and as a manifestation of solidarity to other employees for
the same purposes. The right to strike is exercised pursuant to the provisions of the
1aw regulating it.
4. Trade union organizations are entitled to negotiate with the competent
authorities in regard with the terms, emoluments and employment conditions of
their members.

When it comes to advancing their interests, public-sector unions have significant advantages
over traditional unions. For one thing, using the political process, they can exert far greater
influence over their members‘ employers — that is, government — than private-sector unions
can. Through their extensive political activity, these government-workers‘ unions help elect the
very politicians who will act as ―management‖ in their contract negotiations — in effect
handpicking those who will sit across the bargaining table from them, in a way that workers in a
private corporation.73

As economist Richard Freeman has written, ―public sector unions can be viewed as using their
political power to raise demand for public services, as well as using their bargaining power to
fight for higher wages.‖74 The effects of public-sector unionism can be grouped under three
broad headings. The first centers on compensation, which includes wages, pensions, health care,
and other benefits easily valued in monetary terms — the core issues at stake in collective-
bargaining negotiations. The second involves the amount of government employment, or the size
of government, as reflected in the number of workers and in public budgets. The third involves
the productivity and efficiency of government services. Insofar as unions negotiate detailed work
rules, they share the power to shape the day-to-day responsibilities of public servants — which
influences what government does, and how well it does it.75

Most economists agree that public-sector unions‘ political power leads to more government
spending. And recently, Chris Edwards of the Cato Institute documented how government

73
Walter Russell Mead & Staff , Private Sector Unions Gain on Public Sector Unions, Deck Chairs on the Titanic,
http://www.the-american-interest.com/blog/2014/01/27/private-unions-gain-on-public-unions/
74
Daniel DiSalvo, The Trouble with Public Sector Unions, p 9, w w w. N a t i o n a l A f f a i r s . c o m f
75
Ibid, p 11
unionism has abetted growth in public-sector compensation. Generally speaking, the public
sector pays more than the private sector for jobs at the low end of the labor market, while the
private sector pays more for jobs at the high end. For janitors and secretaries, for instance, the
public sector offers an appreciably better deal than the private economy76

The above American experience argument is yet for Ethiopian but we can ponder the benefits of
public labor union. For the developed country scholars have been looking for solutions and
provide hypothesis for the declination of labor union. The Ethiopian civil servant are not yet
enjoy the benefit that the union bring for him and better of civil service system and not yet show
its influence when bargain with the governments.

The results revealed in TABLE-14 show that the respondents of YCHDO have identified 5
causes of poor worker participation in decision making. These are absence of willingness of the
management, absence of labor union activities, illiteracy of the workers and political grouping
among the workers. Additionally cause of wage and salary incentive scheme of the government.

76
Ibid p11-12
Chapter four

4. CONCLUSION AND RECOMMENDATION


4.1 Summary of findings

The central objective of the study was to investigate the workers participation in management
decision making of the Yeka sub city Construction and House Development office (YCHDO).

To achieve these objectives 58 employees are selected in purpose full sampling. For selected
samples questionnaire were distributed and various documents were analyzed to find out the
situation of employee participation in management decision making in YCHDO participation in
university management.

The findings from the study are presented in Chapter three. In this section a summary of the
answers to the research questions is given, conclusions are made and recommendations for the
improvement of the practice are suggested.

1. What is current situation of the workers participation in decision making in Yeka


sub city Construction and House Development office?

This question was answered using different question in questionnaire and varies document
review. The highest decision making occurs at top level of YCHDO and there is only 1.7 %
worker participation in decision making at the lowest managerial level. Workers directly
participate reflects other than managerial activities. The motivational activities limited in
transport facility and somehow medical facility. . The findings it is not evidenced that an
individual‘s educational qualification could influence the level of involvement he could exercise.
We can say almost all age workers are believed that the decision to be made in top level.

2. What are natures and types of employee participation?

The findings from the study revealed that there are 7 (seven) practical methods to participate in
worker participation in decision making. These are face-to-face communication, teamwork, labor
union, TQM, Formal meeting, Collective bargaining, Management union Counsel.

3. What are causes of poor employee participation in decision-making?

The findings from the study revealed that there are various personal, institutional and societal
factors affecting employee‘s participation in management decision making.

At personal level illiteracy of the workers; at institutional level the absence of willingness of the
management, political grouping among the workers and uncompetitive wage and salary incentive
scheme of the government; at societal level absence of labor union activities and political
grouping among the workers are discussed illustrated briefly.
4.2 Conclusion

Based on the findings of the study it could be conclude that workers in the study establishments
are generally not much involved in the management decision making within their respective
establishments. On the other hand, the workers generally demonstrated high interest in
management decision making. The study therefore confirmed that while the workers
demonstrated positive attitude towards involvement in decision making, the actual level of
involvement they exercise is negative.

Workers who are subjects of this study generally demonstrated willingness to accept the
responsibility of involvement in management decision making whenever such opportunity arises.
However many hold the view that management decision making is the preserve of the
management. This implies that while the workers are willing to accept the responsibility of
greater involvement in management decision making they are not ready to challenge the
management in this regard. Eventually, based on the findings of the study the following
conclusions are made:

 Decision making by the management is mostly done in top level and at worker level it is
the lowest, only 3%.
 Direct participation in decision making has occurred outside of managerial activities and
in managerial activities and goal setting is limited in range.
 Only few motivational activities transport and medical facility are used in YCHDO for
motivating the employees.
 The workers of YCHDO identified five major causes of poor participation in decision
making, such as absence of willingness of the management, absence of labor union
activities, illiteracy of the workers, political grouping among the workers and
uncompetitive wage and salary incentive scheme of the government

4.3 Recommendation

Finally, from the respondents‘ assessment of management attitude towards workers participation,
it could be concluded that the management in the YCHDO are not favorably disposed towards
granting workers significant measure of involvement in management decision making. This
finding would lead us to conclude that a lot needed to be done to change the current negative
disposition of the YCHDO management towards workers involvement in management decision
making. More importantly, the current obstacles against effective workers participation in
YCHDO could be tackled through organized labor collectives.

Based on the findings of this study the following recommendations are made for the
improvement of current practice.

 Enlightenment program for worker on their rights to seize the opportunity of involvement
in decision making.
 Provision of monetary and other incentives for workers to encourage them sustain the
current interest in participation.
 Liberalizing management structure so as to allow for greater workers involvement and
particularly deep concern of policy makers about civil servant right to bargaining
collectively and unionization of public service worker, and lastly,
 Training programmes for workers in management functions as a way of properly
equipping them on their decision making role.
Reference

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CONSIDERATION.
Appendix:
A. Questionnaire

Admass University College Research and Publication Office


The Questionnaire develop to gather information regard to employees‘ participation in management
decision making in Ethiopian public sector, Yeka sub city construction and house development enterprise.
We would appreciate your participation on this study. We would like to ask you about your socio
demographic status and your knowledge and experience as regards employee participation in management
and related questions.

The information which will be obtained from you may help us to implement the study objective in to
action. The questionnaire will take about 8-15 minutes to complete. Whatever information you provide
will be kept strictly confidential and will not be shown to other persons.

Designation Sex: Role in any forum


I. Personal Data:
1. Age: A) 20-25 year B) 26-30 year C) 31-35 year D) 36-40 year E) 41-45 year
F) 46-50 year G) 50-60 year H) Above 60year
2. Marital Status: A) Single B) Married
3. Education Qualification:
A) 1-12th B) Diploma (level) C) Under graduate D) Post Graduate E) other
4. Work experience
5. What is your Remuneration per month?
A) Br.1000- Br.3000 B) Br.3001-Br. 5000 C) Br.5001-Br. 10000
D) Above Br.10000
II. Questions to assess present situation WPM
Responding rank
Very Very
No. Questions to be filled by the respondents Good Good Bad Bad
1 My manager/Supervisor will care about both my personal
(Health, Family etc) and Job (production, Training and
Development etc) needs.
I am satisfied with the company‘s reward and recognition
2 program.
3 My manager/Supervisor is cooperative with me.
I think that management takes interest in promoting
4 joint forum or union.
The meetings and decisions arrived at the joint Forum or
5 union given wide publicity.
6 Which is your position in the organization?
A. Top level B. Middle level C. Lower level
7 In which level do you think that your organization making decision?
A. Top level B. Middle level C. Lower level D. Worker level
8 In which activities are you participate directly?
A. Management activities B. Goal setting C. other activities
9 What are motivational activities in your organization?
A. Bonus B. Transport facilities C. housing facilities
D. Canteen facilities E. Medical facilities
III. Questions to identify the nature & type of PMDM
No. Strongl Agree Disagree Strongly
Questions to be filled by the respondents
y agree disagree
10 I can disagree with my supervisor without fear of getting
in trouble.
11 My supervisor/manager listens to what I am saying.
12 My supervisor/manager values my talents and the
contribution I make.
13 My ideas and opinions count at work.
14 Senior management genuinely interested in employee
opinions and ideas.
15 People with different ideas valued in this organization.
16 The presence of the union makes labor management
relation more effective.
17 There is strong feeling of teamwork and cooperation in
this organization.

18 Different methods available to participate in MDM in my


organization
A. 5S (kaizen) B. Collective bargaining C. Face to face communication
D. Team work E. Informal Meeting F. Management union Counsel
G. Jointly consulate counsel H. TQM I. Labor Union J. Formal meeting
K. Other (If any please specify)

IV. Questions to identify the causes of poor Employee participation


No. Strongly Agree Disagree Strongly
Questions to be filled by the respondents
agree disagree
19 Administrative staffs are the members of labor union.
20 The union representatives actively transfer our
commentary to the union and management.
21 Management/supervisor gives me permission to participate
in union meeting.
22 Which can be the causes for poor employee participation in DM in your organization?
A. Absence of willingness of management B. Absence of labor union activities
C. Lack of workforce diversity D. Illiteracy of the workers
E. Political grouping among the workers. F. Other

Thank you for your time and participation in this questionnaire!

https://ermiastizazu.com

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