Effect of participatory decision making on organizational performance

describes a democratic type of decision-making in organizations

1. - EFFECT OF PARTICIPATORY DESCISION MAKING ON ORGANIZATIONAL PERFORMANCE: IN THE CASE OF ARBAMINCH TOWN WATER SUPPLY AND DRAINAGE AUTHORITY BY BIRUKTAWIT TESFAYE Paramed College September, 2024 ARBA MINCH Ethiopia

2. 1.1 Background of the Study   participatory decision making is the involvement of employee in decision making which is concerned with shared decision making in the work situation (Mitchil,2021) . [Locke, 2020,] defines employee participation as a joint decision making between managers and subordinates. participatory decision making the degree of employee involvement in organization’s strategic planning activities.

3. Background of the Study ------ Mohammed (2018) found that today participatory decision making faces a challenge that are difficult to control, including autocratic leadership style of some organization, organizational culture, intense competition, poor communication between managerial and subordinates and complexity and volume of organization. This study is intended to assess effect of participation of employees in decision making on their organizational performance in case of Arbminch town water supply and drainage authority

4. Statement of the Problem Mangiza (2016) stated that 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. Noah (2018) found the idea that 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.

5. : Several studies ( Ojokuku , 2014, Chukwuemeka , 2020, Irene, 2023) have shown that allowing employees to participate in decision making leads to increase in motivation, organizational performance, and organizational growth. Arbaminch town water supply and drainage authority is one of the oldest institution providing water supply service and drainage treatments in Arbaminch town, Ethiopia. So to satisfy all these diversified people in Arbaminch town is complex. However, South Ethiopia Water and Energy supply department 2023 report shows that 92% of Arbaminch town household consumes clean water. Thus , participating employee and stockholders in decision making process plays a crucial role in organizational performance.

6. Objective of the study General Objective The general objective of this study was to assess the effect of participatory decision making on organizational performance in the case of Arba -Minch Water Supply and Drainage Authority Specific Objectives This study aimed to meet the following specific objectives: To Determine participatory decision making level of study organization To determine challenges of participatory decision making process. To identify significant impact of Employee participatory decision making on organizational performance

7. Scope of the Study This study tried to assess the effect of participation in decision making on organization performance in the case of Arba -Minch town water supply and drainage treatment Authority. This thesis focused on three issues: participatory decision making practice in study area, effect of participatory decision making on organizational performance and challenges of participatory decision making. It is cross sectional research in nature and followed both quantitative and qualitative approach. This study was conducted in 2024 academic year.

8. RESEARCH METHODOLOGY 1 Research Design Explanatory research design was used to assess the effect of participatory decision making on Organizational performance. In addition, the researcher employed both qualitative and quantitative research approaches . Because using mixed approach helps to gather adequate data that cannot be obtained by a single approach ( Cresswell , 2003).

9. Population of the study Subordinates and management staff of Arbaminch town water supply and drainage are the target population of the study. According to Arbaminch town water supply and drainage authority human resource management, there are more than 120 permanent and temporary employees in the organization.

10. Sampling techniques Yamane Taro (1967) sample size determination formula was used to select sample size. Stratified sampling technique was used to select 95 sample size

11. Types of data and Source of Data Data was collected from the primary and secondary sources. Primary data was collected from Employee of Arbaminch town water supply and drainage treatment Authority. Secondary sources were collected from document analysis annual reports and other working manuals .

12. Data Collection Tool Questionnaire was the main primary data collection tool in this study. Questionnaire included several themes according to the questions and objectives of the study. Secondary data was collected by reviewing reports and manuals

13. Data Analysis Method B oth descriptive and inferential statistical method of data analysis was used. Both quantitative and qualitative method s of data analysis were employed to answer the basic research questions and achieve the objectives of the study . Inferential statically method such as multiple regression was used

14. 4/ Result and DISCUSSION Demographic Profile of Respondents This section summarizes the demographic characteristics of the respondent, which includes age of the respondent, gender, educational level, work experience, and marital status.

15. Sex of the respondents No Gender Frequency Percentage 1 Male 57 60% 2 Female 38 40%   Total 95 100%

16. -- The study found that majority of the respondent as shown above 60 % was males whereas 40% of the respondent was females

17. Age distribution of respondents Age Category Frequency Percentage 20-30 42 45% 31-40 35 37% 41-49 10 10% Above 50 8 8%

18. Educational level of respondents Educational level Frequency Percentage Educational level High school and below 20 21% High school and below College Diploma 32 34% College Diploma Degree 41 43% Degree Master 2 2% Master Total 95 100% Total

19. From the findings it was established that the education level of respondents are categorized into four. These are master’s degree, degree, college diploma and high school and bellow. The study finding indicates that highest employee respondents are degree holders (43%), 34% of the respondent are college diploma holders, and 21% of the respondents are high school and below educational level

20. Marital status of respondents Marital status Frequency Percentage Single 32 33% Married 45 50% Divorced 12 12% Windowed 6 6% Total 95 100%

21. --- The majority of respondents (50%) are married. (33%) of the respondents are single and the rest (12%) and 6% are divorced and windowed respectively. From the data one can conclude that the majority of the respondents are married .

22. Service year of respondents Category Frequency Percentage Service year of the respondents <4 years 22 23% 4-10 years 60 63% 10-15 years 13 14% >15 years 0% Total 95 100%

23. Challenges of participatory decision making Challenges of quality management practices 4.206 1.038 Autocratic leadership style 3.854 1.378 Lower academic status of employees 4.215 1.363 Ignorance of employee participation 3.984 1.355 Partial treatment of employees 3.586 1.446 Poor performance of employees 4.314 1.342 Prevalence of corruption and misbehaviors 2.213 1.757 Poor human resource management skill 3.560 1.062 Political influence 3.781 1.164 Lack of employee self confidence 3.211 1.564

24. -- Autocratic leadership style, poor academic status, ignorance of employee participation, partial treatment of employees, loose top management support, poor performance of employees, political influence, prevalence of corruption and misbehavior, poor managerial skill and lack of employee self -confidence challenges participatory decision making in an organization. All these problems have moderate negative effect on organizational performance.

25. Inferential statistical tests All inferential statistical tests ( multicollinearity , homoscedasticity test, normality test, linearity test were conducted and the data fits the model

26. Analysis of Inferential Statistics One of the specific objectives of the study is to assess the effect participatory decision making on organizational performance . For this purpose, inferential statistics of multiple regression analysis has been used and the results are presented in the following sections

27. Model summary of Regression analysis model R R Square Adjusted R square Standard error of the estimate Durbin Watson 1 0.889 a 0.79 0.775 0.252 1.725 Predictors: constants), socio-demographic factor, leadership style, employee empowerment, position, organizational culture Organizational performance

28. As shown on the table above given the R Square of 0.79, the model summary revels that the proportion of the variation in organizational performance is explained by participatory decision making by 79% (where by R square is .79) and the remaining 21% of the variance is explained by other unexplored variables not included in this study . As it is observed from the model summary the coefficient of multiple correlations R which is the degree of association between participatory decision making and organizational performance is 0.88.

29. Regression Analysis Model Sum of square df Mean square F value Sig. 1 Regression 14.609 5 2.542 39.961 .000b Residual 6.661 89 0.064     Total 18.370 94      

30. - Furthermore, the ANOVA table shows the overall significance / acceptability of the model from a statistical perspective. As the significance value of F statistics shows a value .000, which is less than p<0.05, implies the model is significant and 0.0% of regression model representing untrue information. Therefore , participatory decision making is a strong predictor of organizational performance

31. Regression coefficients   unstandardized coefficients Standardized coefficients t sig Model B Std. Error Beta     Demography of employee 0.301 .087 0.180 2.309 0.000 organizational culture 0.832 .064 0.620 11.288 0.000 employee empowerment 0.889 .083 0.751 2.216 0.000 leadership style 0.527 .070 0.404 5.985 0.000 position of employees 0.349 .068 0.228 3.074 0.000 Dependent variable – organizational performance

32. -- Multiple regression model is applied to determine how participatory decision making in Arbaminch town water supply authority has an effect on organizational performance as the study contains more than one predictor. The strength of each independent variable influence on the criterion (dependent) variable can be investigated with standardized Beta coefficient.

33. --- Therefore, employee empowerment is the most contributing participatory decision making variable in the prediction of organizational performance with beta value 0.79. The other participatory decision making variables, in their descending order of standardized coefficients, are organizational culture ( β = .620) and leadership style ( β =.404), position of employees ( β = .0228) and demography of employees and that the variables are making significant to the prediction of organizational performance.

34. -- This study is in line with Nyindo (2021) which indicate a significant relationship between participatory decision making and organizational performance . The findings also revealed a positive relationship between participatory decision making and organizational performance.

35. -- In addition, the significance levels of socio-demographic, organizational culture, position, employee empowerment and leadership style are .000, .000, .000, .000 and .000 respectively, which are less than 0.05. Which means that there is a significant relationship between the three participatory decision making and organizational performance the finding is consistent with the study of Mohammed, (2018) which indicate participatory decision making traits organizational culture, leadership style and socio-demographic character as a significant predictors of organizational performance

36. C onclusions Based on the findings, organizational performance is a critical factor in every organization to be successful. This research work can justify that organizational performance has positive relationship and impact of participatory decision making which comprises of socio-demographic factor, organizational culture, leadership style, empowering employee and employee position. As per the findings of this study on organizational performance, all the ratings show that employees have moderate level of ratings to their organizational performance of study organization

37. Recommendations Depending on the findings of the study and conclusions made, the researcher came up with some important recommendations which would help the organization to focus on the participatory decision making that can largely contribute to the improvement on level of organizational performance. The recommendations given are the following:

38. -- Democratic leadership style should be exercised to allow employee involvement in decision making process. Gender equality, impartial treatment of employees, should be promoted to involve employee participation. Transparency and accountability would promote employee involvement in decision making process. All employees (with respect to religion, race, age, position and academic status should be included in the decision making group

39. Time for Comments, suggestion and questions