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Management and Administrative Sciences Review

Volume 5, Issue 5 e-ISSN: 2308-1368

Pages: 260-268 p-ISSN: 2310-872X
September, 2016

To Examine How Employee Participation in Decision Making

Influences Organizational Commitment: A Case Study of
Savannah Cement Limited

Simon Wainaina Kamau1, Alex Njuguna Chege2*

1. Student of Business Administration, Department of Management, Nairobi Campus, Maseno University

2. Lecturer, Department of Management, Main Campus, Management University of Africa

This study aimed to investigate employee participation in decision making on organizational

commitment. The objective of the study was to examine employee participation in decision
making influences organizational commitment at Savannah Cement Limited. This study
adopted a descriptive survey design in the investigation of employee participation in decision
making on organizational commitment at Savannah Cement Limited. The study population
consisted of 302 employees working at Savannah Cement Limited. A sample of 30 employees
was selected using stratified random sampling technique. A questionnaire was used to collect
primary data. Data collected was analyzed with the aid Statistical Package of Social Science
SPSS (version 21). A multi regression model was generated to show the influence of the
variables to organizational commitment. The regression showed that consultative
management had the highest influence on organizational commitment with a coefficient of
0.488, followed by group discussions with a coefficient of 0.384, suggestion programs with a
coefficient of 0.269 and briefing groups with a coefficient of 0.221. The study recommends
the support of employee participation in decision making. The study also provide insight for
further studies on the topic.

Keywords: Employee participation, decision making, Consultative management, Group

discussions, Suggestive programs

INTRODUCTION
The term participation according to Bateman &
Crant, (2011) include people's involvement in
decision making processes, in implementing
programs, their sharing in the benefits of
development and involvement in efforts to
evaluate. The concept of employee participation
implies a practice, which gives workers greater
opportunity to be involved in decision-making
beyond the immediate boundaries of their jobs
(Devi, 2009). The practice increase employees share
of influence in decision making at different levels of
the organizational hierarchy, with increase sense of
accountability and responsibility. Employee
participation is practices that increase the scope for

*Corresponding author: Alex Njuguna Chege,

Lecturer, Department of Management, Main Campus, Management University of Africa
E-Mail: alexchege89@gmail.com
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Volume: 5, Issue: 5, Pages: 260-268
employees to play a role in management at the
different levels of the organizational hierarchy
(Febriansyah, 2010)
Employee involvement first appeared in an
agreement between Ford and United Automobile
Association. The two terms are often associated
with employee participation in firm decision
making and are often considered synonymous. A
company sees employee involvement as the
application of common sense to the personnel
process by cooperating with and seeking the ideas
of the employees (Devi, 2009). Participation
combines management and employee
representatives in formulation of company policies;
according to Doherty, (2010) participation is giving
employees greater opportunity to make-work
related decisions.
A manager who uses participation creates benefits
for an institution and its employees, as participation
improves the performance of an institution and
reduces role conflicts, role uncertainty, absenteeism
and turnover amongst employees (Clayton et al.,
2008). A high turnover rate of employees costs
South Africa several millions of rands a year
through decreases in productivity (Grobler et al.,
2006) Participative governance in the workplace is
essential because the issues that are prevalent in the
workplace are too complex and interdependent to
be handled by a few people in authority (Crim &
Gerrard, 2006)
Bateman & Crant, (2011) identified five major
components found in employee participation
programs along with illustrative techniques as;
work redesign which includes job enlargement, job
enrichment, job rotation, modular work group and
autonomous work teams. Secondly, pay
restructuring to include, salaried workforce, pay for
knowledge, and unit productivity sharing, Thirdly,
time scheduling may be considered and will
include, flexible work hours, compressed
workweek, and job sharing, fourthly, performance
development is considered to include positive
reinforcement, problem solving quality circles,
middle range planning and physical redesign.
Administrative review is also looked into to
include, information sharing, procedural change
and training. The emergence of employee
involvement coincided with the rise of human
resource management as a distinctive approach to
management. There was the Thatcherite era
representing a permissive climate, whereby the
requirement for employee involvement was
ultimately conditional on the move to distinctive
human resource management approach (Doherty,
2010). The form that it took was a greater
willingness to communicate directly with the
employees and an enhanced recognition of
potential contribution that employees could make
to organizational performance (Harter, Schmidt, &
Hayes, 2009).
Savannah Cement Company Limited was founded
in 2012, being among one of the manufacturing
cement company with its headquarters in Nairobi.
The Company competes in one of the most
competitive markets in Kenya. It makes a
commitment to deliver quality and value. The
company provides high quality products suitable
for all construction purposes (Savannah Cement
Company, 2016).
The company has performed well even in an
intensive competitive environment that has seen
the emergence of many companies offering the
same type of products. A wider customer base is
vital component of organization profitability that
must be looked at into if an organization is going to
counter the ever growing competition.
Problem Statement
The study aimed to examine employee’s
participation in decision making influences
organizational commitment. Employers must
therefore find ways to retain talented people in the
organization and at the same time keep costs low in
order to remain competitive in the market. Karl’s
(2006) model of stakeholder participation seemed to
confirm that excluding employees from making
decisions will likely lead to the lack of ownership
of, and commitment. Savannah Cement being an
organization has faced the challenge where the
management let employees implements the policies
that they have not participated in formulating
without realizing that employees are unhappy
implementing. They feel unappreciated and not
trusted with their contributions and yet they are
working for the company. This research will
therefore seek to establish relationship between
employee participation in decision making and
organization commitment in reference to Savannah
Cement Limited.
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Volume: 5, Issue: 5, Pages: 260-268
Objectives of the Study
(i) To establish how consultative management
influences organizational commitment
(ii) To determine how group discussion
influences organizational commitment
(iii) To evaluate how suggestive programs
influences organizational commitment
(iv) To determine how briefing groups
influences organizational commitment
LITERATURE REVIEW
Theoretical Review
According to Saks (2006) employee participation is
provided by social exchange theory. The theory
argues that obligations are generated through
employers engaging employees in decision making.
According to the theory relationships evolve over
time into trusting, royal and mutual commitments
as long as parties abide by certain rules of exchange.
It involves reciprocity or repayments rules such that
the actions of one party lead to a response or actions
by the other party (Armstrong, 2012). According to
Balain and Sparrow (2009), social exchange theory
best describes employee participation because it
sees feelings of loyalty, commitment, discretionary
effort as all being forms of reciprocation by
employees to a good employer.
However, the research extends to Social exchange
contribution to knowledge by examining how
employee participation in decision making
influences organizational commitment.
Empirical Review
A study conducted in Malaysian company indicates
that managers place much emphasis on their sub
ordinate involvement in their decision making
(Matt, 2007). (Menderson, 2009) pointed that this
involvement gives employees proper recognition
and increases job satisfaction. In this context,
reported that employees’ involvement in decision
making will increase their job satisfaction and thus
possibly becomes a stimulating factor that sustains
teachers in their profession. Additionally Mwangi,
(2011) reported that delegation decision making
brought about higher efficacy and motivation.
Febriansyah, (2010) suggest that allocating decision
making to entire work group produces higher
acceptance of decisions and a higher chance that the
decisions will be implemented efficiently The point
to be made is that people affected should participate
at the very inception of any plans to introduce
change as systematized an existing situation.
Failure to do so will only imperil success indeed the
concurrence of work people is required so as to
increase a more committed performance on the
event of achieving organizational goals.
Omar (2012), through a study conducted at The
Unilever Manufacturing Company on the
influences of suggestive system on employee
performance in the manufacturing sector revealed
that suggestive systems has a high influence on
employee performance. The study findings further
revealed that an all round suggestive systems is
more effective in influencing employee
performance and contributes to positive indicators
as increased commitments, loyalty, innovations,
creativity, quality, motivation and reduced
complaints, stress, grievances and conflicts. The all
round suggestive systems increases employee
knowledge, skills and abilities and created greater
understanding of the processes in an organization
This driver recognizes the significance of the
influence that briefing groups have on the level of
employee participation (Gubman, 2007). Building
briefing groups in the organization is important.
Developing mutual respect and trust between
colleagues is seen as key to enabling employees to
participate with the organization. According to
Gubman (2007) many organizations have briefing
groups that fail to recognize the need to unite their
efforts toward making decision.
CONCEPTUAL FRAMEWORK
Figure 1 which show the conceptual framework
gives a clear indication of the independent
variables: consultative management, group
discussions, suggestive programs and briefing
groups and all are interrelated. The dependent
variable is organizational commitment which is
critical to any organization for it to achieve its goals
and objectives.
FIGURE 1 HERE
METHODOLOGY
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e-ISSN: 2308-1368, p-ISSN: 2310-872X
Volume: 5, Issue: 5, Pages: 260-268
The study used descriptive research design. The
population consisted of the entire 302 employee
working at Savannah Cement based on records
from the human resource department.
Headquarters is considered because all decisions
are done there. From the population of 302
employees, a sample size of 30 is picked. This
corroborates Mugenda & Mugenda, (2003)
assertion that a sample size greater than 10 % is very
good for data collection. Stratified random
sampling method is used to select a sample of 30
from the 302. Primary data was used to collect data
by the help of a questionnaire.
FINDINGS AND DISCUSSIONS
30 questionnaires were administered by the
researcher to the employees sampled from each
department in the company. Out of the sample size
of 30, 23 respondents (77%), were fully responsive,
5 questionnaires (17%) were incomplete and hence
could not be used for data analysis while 2
respondents did not respond at all (6%). Hence the
researcher validated 23 questionnaires which were
used for the data analysis and presentation. male
respondents were 10 (43%) while female
respondents were 13 (57%) hence there was
adequate participation of both genders in the study
proving that the study is not biased along gender
lines. The study found out that 7 respondents (30%)
were 28 years and below, 10 respondents (44%)
were 29 to 39 years old, 4 respondents (17%) were
40 to 49 years finally 2 respondents (9%) were 50
years and above. This indicates that majority of the
respondents are (29-39 years) according to this
research. 70% of the respondents are 29 years and
above and would give a clear and objective view on
the operations of the organization as far as
employee participation in decision making is
concerned. The study found out that 1 respondents
(4%) had O levels as their highest level of education.
2 respondents (9%) had certificate levels as their
highest educational level attained, 7 respondents
(30 %) had a diploma as their highest level of
education, 11 respondent (48%) had Bachelors
degree as their highest education level and 2
respondents (9%). had post graduate as their
highest education level. This shows that the
respondents in the organization were well
educated. The research also found out that the
respondents were willing to provide the required
information regardless of their level of education
DESCRIPTIVE STATISTICS
Consultative Management
From the findings, the respondents indicated that to
a great extent proper recognition of employees in
decision making influences organizational
commitment with a mean of 4.04/5. The
respondents indicated that to a great extent the
management weighs all alternatives before final
decisions are made influences organizational
commitment with a mean of 4.13/5. Also the
respondents indicated that to a great extent the level
of consultation in decision making influences
decision making with a mean of 4.17/5. Lastly, the
respondents indicate that to a great extent
employee’s involvement in decision making
influences organizational commitment with a mean
of 4.22/5
Group Discussions
From the findings respondents indicated that to a
great extent work teams in decision making
influences organization commitment with a mean
of 4.35/5. Also the responded indicated that to a
very great extent problem solving groups in
decision making influences organizational
commitment with a mean of 4.62/5. Lastly, the
respondents indicated that sharing information in
decision making influences organizational
commitment by a mean of 4.2/5
Suggestive Programs
From the findings the respondents were moderate
on suggestion forms for decision making influence
organizational commitment with a mean of 3.00 out
of 5. Also the respondents indicated that to a little
extent suggestion box for decision making
influences organizational commitment with a mean
of 2.39 out of 5. Lastly, the respondents indicated to
a very great extent employee suggestions in
decision making influences organizational
commitment with a mean of 4.70 out of 5
Briefing Groups
From the findings, the respondents indicated that to
a great extent managers interacting face to face with
employees during decision making influences
organizational commitment with a mean of 3.70 out
of 5. The respondents to a great extent indicated that
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Volume: 5, Issue: 5, Pages: 260-268
brief meeting with employees during decision
making influences organizational commitment
with a mean of 3.61 out of 5. Lastly, the respondents
were moderate on team briefs in decision making
influences organizational commitment with a mean
of 3.43 out of 5.
INFERENTIAL STATISTICS
Analysis of Variance
TABLE 1 HERE
.000 is the significant value which is less than 0.05
thus the model is statistically significant in
predicting independent variables (consultative
management, group discussions, suggestive
programs and briefing groups) this shows that the
overall model was significant.
Regression Analysis
TABLE 2 HERE
The Unstandardized beta coefficients column were
used to obtain the overall equation as suggested in
the conceptual framework.
Y = 1.147 + 0.488X1 + 0.384 X2 + 0.269X3+ 0.221X4,
where
Y = Organizational commitment, X1 = Consultative
management, X2 = Group discussions, X3 =
Suggestive programs, X4 = Briefing groups
From the above regression equation,
holding (Consultative management, Group
discussions, Suggestive programs and briefing
groups) constant at zero, Organizational
commitment will be 1.147. A one unit change in
consultative management results to 0.488 units
increase in organizational commitment, a one unit
change in Group discussions results to 0.384 units
increase in organizational commitment, a one unit
change in suggestive programs result in 0.269 units
increase in organizational commitment, one unit
change in briefing groups result and lastly, A one
unit change in briefing groups results to 0.221 units
increase in organizational commitment. The t-test
statistic indicates that all the Beta coefficients of
consultative management, group discussions,
suggestive programs and briefing groups are
significant (since p<0.05).
Regression Model Summary
TABLE 3 HERE
The coefficient of determination and correlation of
the dependent variables when all independent
variables are combined can also be measured and
tested as in the table above. From the findings 67.6%
of organizational commitment is attributed by
independent factors that relate to consultative
management, Group discussions, suggestive
programs and briefing groups examined in this
study. A further 32.4% of organizational
commitment is attributed to other factors not
examined in this study.
CONCLUSIONS
The study establishes that consultative
management had the greatest influence on
organizational commitment. The study shows that
one unit change in consultative management
influences organizational commitment by 0.488;
group discussion was subsequent with a coefficient
of 0.384, followed by suggestive programs with a
coefficient of 0.269. Lastly, briefing groups with a
coefficient of 0.221. The study concludes that
consultative management, group discussions,
suggestive programs and briefing groups have a
positive effect on organizational commitment.
RECOMMENDATION
The study recommends Savannah Cement
Company to support employees’ participation in
decision making. The study also recommends
organizations to use consultative management
through level of consultation, employee
involvement, proper recognition of employees and
weigh alternatives in decision making to influence
organizational commitment. The study also
recommends organizations to use group discussion
through work teams, problem solving groups and
information sharing in decision making to influence
organizational commitment. The study also
recommends the use of suggestive programs
through employee suggestions in decision making
to influence organizational commitment. Lastly the
study recommends briefing groups through
interacting face to face with employees to influence
organizational commitment.
Suggestions for further studies
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Volume: 5, Issue: 5, Pages: 260-268
Since the study was carried out in one company,
situated in one county in Kenya, it is suggested that
similar studies should be carried out in other
companies in other counties of Kenya to allow for
findings which would contribute to generalization.
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APPENDIX

TABLE1: ANALYSIS OF VARIANCE

Model Sum of df Mean F Sig.

Squares Square
Regression 33.775 4 8.944 15.066 0.000b
1 Residual 13.654 18 .594
Total 8.957 22

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TABLE 2: REGRESSION ANALYSIS RESULTS

Unstandardized Standardized
Coefficients Coefficients
B Std. Error Beta t Sig.
(Constant) 1.147 3.93 2.915 .000
Consultative Management .488 .221 .663 1.908 .001
Group discussions .384 .106 .397 3.608 .001
Suggestive programs .269 .115 .192 1.917 .003
Briefing groups . 221 .158 .042 1.222 .041

TABLE 3: MODEL SUMMARY

Adjusted
Multiple R R Standard Durbin-
model R Squared Squared Error Watson
1 0.851 (a) 0.724 0.676 0.77048 2.220

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FIGURE 1: OPERATIONAL FRAMEWORK

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