THE IMPACT OF EMPLOYEES PARTICIPATION IN DECISION MAKING: THE CASE OF SEKYEDUMASE RURAL BANK

ABSTRACT

The primary objective of the study was to investigate into employees’ participation in decision-making and it impact on productivity; using Sekyeredumase Rural Bank as a case study. Data for the study was obtained from management and employees of Sekyeredumase Rural Bank. A sample size of 60 respondents was used for the study. This sample was selected through the purposive sampling and simple random technique. Findings from the study suggest that the most important benefits of employee participation in decision making are genuine employee commitment, better decision, elevation of employee morale, innovation and knowledge sharing, it boost employee satisfaction and motivation, increased efficiency, improves employee performance and helps prepare subordinate for managerial positions in the future. The findings further revealed that management by objective, collective bargaining, work ownership schemes and board representation are the techniques of employee participation in decision making that are mostly used by the rural bank. The findings further revealed that participatory management has positive impacts on organisational productivity, employee productivity, utilization of resource and quality service delivery. Finally, study revealed that some of the key adverse effects of participatory management practices on organisational performance are it slows down decision making process, wastes time since many people are involved in the decision making, participatory management lowers organisational efficiency, leakage of confidential organisational data etc. Based on the results of the study it was recommended that the bank must adopt the necessary measures to control leakage of confidential organisational data whenever they practice participatory management to involve employees in organisational decisions making process. It was also recommended that the bank must reserve certain strategical and operational decisions to only management to make in order to meet the make demands all the time