IMPACT OF EMPLOYEE PARTICIPATION IN DECISION-MAKING ON THE COMMITMENT OF BANK EMPLOYEES IN OGBOMOSO METROPOLIS

Abstract

The study investigated the relationship between employee participation in decision making and organizational commitment in commercial banks within Ogbomoso Metropolis. The study adopted a survey research design. Respondents’ age range was between eighteen (18) to fifty-five (55) years. Data were obtained with 150 questionnaires administered to employees of Commercial Banks in Ogbomoso Metropolis, using simple random sampling technique. The data were analyzed using Pearson’s Correlation and Multiple Regression Analysis.

The result revealed that there is correlation between employee participation and organization commitment. The correlation resulted in p<.01 which showed a significant relationship between employee participation and organization commitment at 1 percent level, it also indicated that the higher the level of employee participation in decision making, the higher will be the organization commitment. Results revealed relationship between employee participation in decision making explain 74.2% variation in organizational commitment using commercial banks in Ogbomosho. Regression model is also significant. Delegative participation has a direct, positive and significant impact on organizational commitment. Consultative participation has a direct, positive and significant impact on organizational commitment and representative participation has a direct, positive and significant impact on organizational commitment. This also validated our hypothesis that there is a significant relationship between employee participation in decision making and organization commitment. The standardized coefficients (Beta) value revealed that the independent variable is statistically significant at 0.05 significant level.

The study concluded that there is a positive relationship between employee participation in decision making and organizational commitment and recommended that employees must be encouraged to participate in decision making process at various levels of the organization and be provided with required skills and information to enhance an informed decision.