Final Reserch Paper

Islamabad campus Research Paper Topic Participative Management

Prepared By:

Ali Shan [email protected] 0345-5556933

Mohammad Sajid Kiyani [email protected] 0346-5042798

ABSTRACT This paper focuses on studying the effect of participative management style on motivational level of the staff. The two variables were further assessed on the basis of their sub-variables identified in the study. For research purposes four major companies of mobile service provider industry in Pakistan were chosen. Questionnaires were used to collect information from a random sample of 100 permanent employees of four selected companies in Islamabad region. The results are interpreted in terms that employees having participative managers have a high level of motivation. Implication are for making use of these results in designing better human resource policies to keep the employees motivated and developing participative approach among managers for creating a powerfully motivated team of employees.

Impact of Participative Management style on Motivational level Chapter 1 Introduction A good quality workforce can make or break a corporation. The most essential part of a quality workforce is its motivational level. The methodology, approach, techniques and manner of working of a manager play a vital role in determining and enhancing their motivational level. Managers are like leaders who have to guide their organization. While traditional management style can accomplish impressive short-term results, the long term consequences can be devastating. De-motivated employees may vent their frustrations by performing poorly, quitting, or complaining to upper management. Stanton (1995) Motivation is the key to performance improvement. There is an old saying that you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty – so is with people. They will do what they want to do or otherwise motivated to do either by them or through external stimulus. Participative management has been useful in motivating the employees to work towards realizing organizational goals. It’s a management’s job to keep their workforce motivated and update in order to perform successful. If workers can be motivated and given the opportunity to participate in the organizations decision-making, suggestion system and goal setting, their job performance should improve. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employee’s changes constantly, David et al (1995)

RATIONALE: The ability lead a successful workforce which is competent depends on various factors and one major key area is motivation. What are the effects of motivation and how it enhances the workforce’s productivity?

PROBLEM STATEMENT The ability lead a successful workforce which is competent depends on various factors and one major key area is motivation. What are the effects of motivation and how it enhances the workforce’s productivity can only be found out through our research that is: “Which management style enhances motivation among the Pakistani Cellular Companies workforce?”

RESEARCH OBJECTIVES •

What is the basic criterion to call an individual motivated?

•

What factors make a person motivated intrinsically and extrinsically?

•

Which management style consists of these contributing elements need to increase motivation?

Limitations of the Study This study was undertaken as a requirement for the course “Advance Research Methods”. Due to availability of limited time, pressure for other course work and in sufficient knowledge of statistical techniques for skewed populations, this report has been prepared with some limitations. Following are the limitations of the study due to which the results cannot be generalized to the population: 1. 2. 3. 4.

Small sample size Convenience sampling Sampling done in Islamabad only which may not be representative of the whole country One of the questionnaires was not pre-tested. This may result in missing of out of some further information that could be used in the analysis of results. Lack of knowledge of the statistical techniques applicable to skewed distributions. Hence, the planned association relationships could not be studied in depth.

Chapter 2 Literature Review After study of extensive literature available to find previous researches on the impact of participative style of management on employee motivation we came across the following:

PARTICIPATIVE MANAGEMENT STYLE “Participative management is a process whereby the employees are involved in the decisionmaking of the organization through formal and informal means.”(Lewis & Renn, 1992) The contingency factor plays an important role in the success or failure of participative approach. These factors are Psychological Contingencies (values, attitudes and expectations of employees); Organizational

Contingencies

(organizational

complexities,

organizational

climate

and

leadership); Environmental Contingencies (competition markets, technology, and government). This analysis provides some principles which are helpful in designing and implementing participative approach in the organization. Marshall Sashkin (1976). Studies have suggested the potential of participative management. Strategy and organizational behaviour researchers have found, for example, that involving employees with diverse perspectives can improve decisionmaking Cosier, (1978); Eisenhart(1989); Schweigeret al (1989). Participation enables the employees to exercise control over their own working environment Enid Mumford (1983). Locke and his associates have concluded that there is much less research support for the value of participation

on

quality

decision-making

than

commonly

proposed

Locke

et

al.

(1986).Researchers have long considered employee participation in decision-making worthy of Empirical attention and proposed that it is highly valuable for organizations and employees Heller and Wilpert (1981); Miller and Monge (1986) Although evidence indicates that participation is associated with positive affect, job performance, and reduced turnover Heller and Wilpert(1981); Millerand Monge(1986); Spector(1986), findings are not uniformly supportive of participation. Participation in decision making (PDM) is associated with different outcomes. i.e. motivation, productivity, job satisfaction, employee behaviour and attitude etc. participation is a multidimensional concept. Earlier it was considered as a Unitary Concept. John L Cotton (1988). Participative leaders consult with employees, ask for their suggestions, and take their ideas

into consideration before making decisions. Researchers have interpreted inconsistent findings to suggest that participation provides opportunities for employees to use their skills to contribute to solving problems but whether they do depends upon how they and their managers use these opportunities Tjosvold et al(1987); Glew (1995). Participative leaders meet with employees and together they discuss issues and make decisions. Participation is typically operationalized in terms of employee beliefs that they have an opportunity to discuss problems and influence organizational decisions Stanton (1993); Emery (1995). Participative system has five characteristics. Firstly; Participation is a formal intervention strategy. Secondly; it includes direct involvement of parties. Thirdly; both the parties have he right to make the final decision. Fourthly; participative system emphasize on important issues and lastly; participative system involves stakeholders in their problems and the extent of their involvement depends on the situation.

Research Paper Reviews Employee Participation: Different forms and Different Outcomes John L Cotton : The Academy of management review Vol 13, No 1(Jan 1988) Literature Review According to this paper different forms of participation in decision making (PDM) are associated with different outcomes. i.e. Motivation, productivity, job satisfaction, employee behaviour and attitude etc. A classification scheme was constructed which identifies three properties of PMD they are formal-informal; direct-indirect; and hoe much access organizational members have in decision making. Six forms of PDM are Participation in work decision; Consultative participation; Short term participation; Employee ownership; Representative participation: all of them have a different effect on the properties of PDM. The result shows that participation is a multi-dimensional concept. Earlier it was considered as a Unitary Concept.

Changing Participative Management Approach A Model and Method Marshall Sashkin, The Academy of Management Review, Vol. 1 No, 3 (July1976) Literature Review This research paper focuses on Participative approach which have been applied n the organizational settings. Four types of participative approaches are, Participation in goal setting; Participation in decision making; Participation in solving problems; Participation in development and implementation of change in the organization. Participation may be implemented on individual dyadic (superior’s supervisor) or group basis. The different types of methods of participation are designed at different employees needs, function in different ways and have different outcomes. The contingency factor plays an important role in the success or failure of participative approach. These factors are Psychological Contingencies (values, attitudes and expectations of employees); Organizational

Contingencies

(organizational

complexities,

organizational

climate

and

leadership); Environmental Contingencies (competition markets, technology, and government). This analysis provides some principles which are helpful in designing and implementing participative approach in the organization.

Participative Systems Design: Practice and Theory Enid Mumford; Journal of Occupational Behaviour; Vol. 4, No.1 Literature Review

This research paper explains participation is a significant part of system design. Participation enables the employees to exercise control over their own working environment. Participative method involves users at all the levels in the design process of the new technical system. All employees enhance their skill and knowledge in design process and take decisions at each stage of design process from defining the problem to implementing the new system. This paper also describes that the organizations that uses participative systems design proves fruitful results.

Affect as a Source of Motivation in the Workplace: A New Model of Labor Supply, and New Field Evidence on Income Targeting and the Goal Gradient

Lorenz Goette (University of Zurich, CEPR and IZA Bonn), David Huffman (IZA Bonn) Literature Review In this research paper a new, dual-process model of labour supply, which incorporates both cognitive and affective aspects of decision-making are proposed by the authors. With evidence from neuroscience, the worker may experience conflicting cognitive and affective motivations during the workday. In particular, the affective system values effort more highly as long the worker’s performance is below a personal goal, or income target, and becomes increasingly aroused as the goal approaches. As a result, affect can distort effort decisions relative to a fully cognitive benchmark, in a way that is consistent with evidence on loss aversion, and with the socalled goal-gradient effect, a tendency for animals and humans to increase effort as a goal approaches. In contrast to a standard model of labour supply, our model can predict a goal gradient, and predicts that workers may actually lower total daily effort in response to a temporary increase in the wage. Also, within-day windfall gains may have an impact on a worker's effort profile over the workday. The Motivational Effects of Participation versus Goal Setting on Performance Gary P. Latham; Timothy P. Steele The Academy of Management Journal, Vol. 26, No. 3. (Sep., 1983), pp. 406-417. In this research paper the authors after studying the work of Coch and French found that participation at a job redesign in a manufacturing plant was effective in increasing productivity levels or levels that occurred when employees were allowed no say in the redesigns of their jobs. Employee participation also led to greater increases in productivity than those occurring when employee delegates or representatives participated in the decision making on the redesign. In short performance was directly proportional to the amount of employee participation in decision making. The extent to which participation would affect performance in the absence of goal setting is not clear. Goal setting theory (Locke, 1968) states that participation can affect motivation only to the extent that it influences a person’s goal that is acceptance/commitment). Consequently, much subsequent research has focused on participation as a method for goal setting.

CHAPTER 3 RESEARCH 3.1 FRAMEWORK

Participative Management Style Supervisory guidance Importance of Opinion Supervisory Competency Supervisory Fairness Respectful Treatment Decision Making Authority Suggestion System Goal Setting Quality Circles

Employee Motivation

Increases

Work Autonomy Timely Information Job Commitment Job Effort Workplace Boredom Work Interest Self Competency

METHODOLGY 3.2 SAMPLE SELECTION The data used to test this model were collected from a survey of four mobile service proving companies located in Islamabad with approximately 300 employees. Questionnaires were completed and returned by 100 employees, with 100 percent response rate. Using these criteria, data from a total sample size of n=100 employees were included in the analysis.

3.3 SAMPLING TECHNIQUE Cluster sampling technique was used to collect the data. We selected a sample containing a random selection of the elements (employees) from clusters i.e. Mobilink, Zong , Warid and Telenor that were they selected randomly from the population (Mobile Service Provider Industry).

3.4 INSTRUMENTS •

Questionnaires:

The questionnaires were designed in a pattern to determine the motivation levels amongst employees and assess whether there is participative style of management being practiced. The questionnaire asked participants to rate the importance of twelve factors that motivated them in doing their work and nine factors to rate their supervisor’s style of management using a Likert Scale ranging from 5= Strongly Agree to 1=Strongly Disagree. The questionnaires provided written comprehensive form of data, which was decoded to deduce our findings.

•

Internet:

Various research engines were used to find related theories and articles to help develop an understanding of the history and literal findings on participative management style and employee motivation.

•

Data from Books and Journals:

From books and journals we gathered previous researches & theories of motivation and participative management style to get an idea of practical implications of the two variables in work environment.

•

Descriptive study Our research study is descriptive in nature

as previous work has been done regarding this topic. We further analyzed that participative style among managers enhances the motivational levels of employees.

Chapter 4 DATA ANALYSIS

4.1 PARTICIPATIVE MANAGEMENT STYLE For our research we have chosen participative management style as an independent variable. To facilitate a comprehensive understanding of its dimension, we further classified it into nine subvariables each having a significant contribution in determining the participative style of management.

Shown below are the frequencies of each sub-variable along with their interpretations:

a) Supervisory Guidance Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 5 5 8 28 54 100

Percent 5.0 5.0 8.0 28.0 54.0 100.0

Valid Percent 5.0 5.0 8.0 28.0 54.0 100.0

Percent 5.0 10.0 18.0 46.0 100.0

The result shows that majority employees are of the opinion that their supervisors guide and assist them in the accomplishment of their tasks. It means that the supervisors use participative style. Some employees disagree with this fact reason being supervisory biasness or communication gap. The ratio of the neutral results is very low which indicates that there is lack of communication and employees are doubtful indicating a need for better interaction between managers and employees.

b) Importance of Opinion

Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 7 8 12 21 52 100

Percent 7.0 8.0 12.0 21.0 52.0 100.0

Valid Percent 7.0 8.0 12.0 21.0 52.0 100.0

Percent 7.0 15.0 27.0 48.0 100.0

The result indicates that the majority of the employees strongly agreed that their supervisors considered their opinion in the delivery of tasks. This ensures participative management style. However very few employees disagreed this fact. Minority is uncertain of how their opinion is regarded by the management.

c) Supervisory Competency Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 6 6 5 17 66 100

Percent 6.0 6.0 5.0 17.0 66.0 100.0

Valid Percent 6.0 6.0 5.0 17.0 66.0 100.0

Percent 6.0 12.0 17.0 34.0 100.0

The result shows that majority of the employees agreed that their supervisor is competent and he has the ability to convey the knowledge properly, enhance full range of skills and accept variety of challenges. Very few employees are of the opinion that their supervisors are not competent so they are de-motivated. The neutral result indicates that the employees are uncertain so they should communicate their problems with the supervisors.

d) Supervisor Fairness Cumulative Valid

Strongly Disagree

Frequency 5

Percent 5.0

Valid Percent 5.0

Percent 5.0

Disagree Neutral Agree Strongly Agree Total

6 10 16 63 100

6.0 10.0 16.0 63.0 100.0

6.0 10.0 16.0 63.0 100.0

11.0 21.0 37.0 100.0

The result indicates that employees are strongly agreed that their supervisors are fair and honest to them. Some employees are of the opinion that their supervisors are not fair to them which shows biasness. These employees are highly de-motivated in the workplace. However few of the employees show neutral response due to communication gap.

e) Respectful Treatment Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 5 5 6 15 69 100

Percent 5.0 5.0 6.0 15.0 69.0 100.0

Valid Percent 5.0 5.0 6.0 15.0 69.0 100.0

Percent 5.0 10.0 16.0 31.0 100.0

The result shows that the employees strongly agreed with the fact that they are treated with respect. Their supervisors allow the opportunity to receive adequate respect from them and also from the employees in other units. Those employees who were of the opinion that they are not treated well involve the issue of biasness and politics. Some employees who were uncertain show neutral results are indecisive and tentative.

f) Decision Making Authority Cumulative Valid

Strongly Disagree Disagree Neutral Agree

Frequency 20 13 9 29

Percent 20.0 13.0 9.0 29.0

Valid Percent 20.0 13.0 9.0 29.0

Percent 20.0 33.0 42.0 71.0

Strongly Agree Total

29 100

29.0 100.0

29.0 100.0

100.0

The frequencies show that employees strongly agreed that their supervisors allow them to make autonomous operational decision; such employees are highly motivated as their supervisors are using participative style. However some employees disagreed with the fact as they are not involved in decision making due to autocratic management style. Very few have vague idea due to lack of communication.

g) Suggestion System Cumulative Valid

Frequency 14

Percent 14.0

Valid Percent 14.0

Percent 14.0

Disagree

9

9.0

9.0

23.0

Neutral

13

13.0

13.0

36.0

Agree

22

22.0

22.0

58.0

Strongly Agree

42

42.0

42.0

100.0

100

100.0

100.0

Strongly Disagree

Total

The majority of employees strongly agreed that their supervisors allow them the opportunity to brainstorm and bring innovative ideas and suggestions. Their suggestions are treated fairly thus increasing their motivation level and ensuring job satisfaction. Some of the employees are of the opinion that there is lack of suggestion system. It means that participative management style is not adopted by the supervisor. However very few employees are indecisive of the fact due to improper flow of communication.

h) Goal Setting Cumulative Frequency Valid

Percent

Valid Percent

Percent

Strongly Disagree

17

17.0

17.0

17.0

Disagree

10

10.0

10.0

27.0

Neutral

13

13.0

13.0

40.0

Agree

23 37

23.0 37.0

23.0 37.0

63.0 100.0

Strongly Agree

Total

100

100.0

100.0

The result indicates that high ratio of employees strongly agreed their supervisors involve them in setting goals and objectives. Their opinion is considered by the supervisors. It means that their supervisor encourages participation. Some employees who are not involved in goal setting are demotivated. Some employees are however uncertain as they are not given timely information

i) Quality Circles Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 41 11 15 9 24 100

Percent 41.0 11.0 15.0 9.0 24.0 100.0

Valid Percent 41.0 11.0 15.0 9.0 24.0 100.0

Percent 41.0 52.0 67.0 76.0 100.0

The result shows that large number of employees is of the opinion that there is no concept of quality circles in their organization as it is less practiced in Pakistan. However some employees agree that the concept of quality circles is practiced in their organization and their supervisors are supportive, although its ratio is very low. Very few employees are unsure that whether this concept is practiced or not, as they are not aware of this concept.

4.2 EMPLOYEE MOTIVATION In this paper employee motivation is the dependent variable. Following the similar approach, it’s divided into twelve sub-variables. Below are given their results along with the frequencies:

a) Work Autonomy Cumulative Valid

Strongly Disagree Disagree Neutral Agree

Frequency 11 11 17 28

Percent 11.0 11.0 17.0 28.0

Valid Percent 11.0 11.0 17.0 28.0

Percent 11.0 22.0 39.0 67.0

Strongly Agree Total

33 100

33.0 100.0

33.0 100.0

100.0

The frequency charts representing the working environment indicates that it encourages the employees to make changes in their routine work to suit organizations needs as most of the employees either agree or strongly agree with the fact. This means that their supervisor has a participative management style which supports the employees to make suitable adjustments. Very few employees either disagree or strongly disagree. This can be due to any kind of personal biasness towards the supervisor. In case of the 17% neutral result, the concept of empowerment should be properly explained to the employees so that the uncertainty could be decreased.

b) Timely Information Frequency Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Percent

Valid

Cumulative

Percent

Percent

11

11.0

11.0

11.0

7 11 37 34 100

7.0 11.0 37.0 34.0 100.0

7.0 11.0 37.0 34.0 100.0

18.0 29.0 66.0 100.0

This chart indicates that the supervisors are very supportive towards the employees as far as timely information is concerned as majority of the employees gave a positive response. This is due to the fact that the supervisors are practicing participative management style. The disagreement level is comparatively low and this problem is present in mostly de-motivated employees. Neutral response is due to a communication gap between the employees and

supervisors, this condition of uncertainty can be decreased by communicating properly when ever information is delivered

c) Job Commitment Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 6 5 8 18 63 100

Percent 6.0 5.0 8.0 18.0 63.0 100.0

Valid Percent 6.0 5.0 8.0 18.0 63.0 100.0

Percent 6.0 11.0 19.0 37.0 100.0

This result interpret that majority of the employees strongly agree with the fact that performing their job to the maximum level is important for them. This is because the employees are motivated to perform the job to the best of their ability due to high level of interest in the job. A small number of employees disagreed with the view that performing a job properly is important for them; this is mostly the case of de-motivated employees. The neutral result by a small number of employees indicates that these employees are unaware that at what level the job is considered well done, this problem can be solved by proper job description and its relative importance.

d) Job Effort Cumulative Valid

Strongly Disagree Disagree

Frequency 5

Percent 5.0

Valid Percent 5.0

Percent 5.0

3

3.0

3.0

8.0

Neutral

10

10.0

10.0

18.0

Agree

26

26.0

26.0

44.0

Strongly Agree

56

56.0

56.0

100.0

100

100.0

100.0

Total

The result indicates that the trend is towards positive as 82% agreed that they give their best performance at work; this is due to high interest level in their job, and motivation towards the organization created by the supervisors. A small ratio of negative result is in the case of highly de-motivated employees who are not properly supervised.

e) Workplace Boredom

Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 35 22 20 10 13 100

Percent 35.0 22.0 20.0 10.0 13.0 100.0

Valid Percent 35.0 22.0 20.0 10.0 13.0 100.0

Percent 35.0 57.0 77.0 87.0 100.0

As far as work boredom is concerned, the frequencies show that majority of the employees are contented with their jobs. As majority gave a positive response, the reason is that the employees are interested in the job they perform and they are satisfied with their job. On the other hand the employees who agreed with the statement are very few in numbers; the reason of their disagreement is lack of interest in their jobs and lack of motivation.

f) Work Interest Cumulative Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

Frequency 11 7 12 22 48 100

Percent 11.0 7.0 12.0 22.0 48.0 100.0

Valid Percent 11.0 7.0 12.0 22.0 48.0 100.0

Percent 11.0 18.0 30.0 52.0 100.0

Majority of the employees agreed with the fact that they are interested in the job they perform. The main reason of their agreement is that the employees are in a profession of their own choice and they are practically contented with their job. Another reason is that jobs are challenging and allow operational autonomy. Few number of employees also lacked work interest and this is due to the fact that their motivation level has decreased relating to the work they perform.

g) Self Competency Cumulative Valid

Strongly Disagree Disagree Neutral

Frequency 3 5 5

Percent 3.0 5.0 5.0

Valid Percent 3.0 5.0 5.0

Percent 3.0 8.0 13.0

Agree Strongly Agree Total

22 65 100

22.0 65.0 100.0

22.0 65.0 100.0

35.0 100.0

More than 80% of the employees agreed that they possess the relevant skills and abilities necessary for their respective jobs. The reason is that the employees are confident about their skills and are highly motivated for the job. The few number of employees who disagreed faced the problem of lack of motivation to learn more. However the problem of the employees giving a neutral response can be solved by training them and informing them about its objectives.

4.3 CORRELATIONS Participative Management Motivation

Pearson Correlation

Motivation

Style

1

.848**

Sig. (2-tailed) N Participative Management Style

Pearson Correlation

.000 100

100

.848**

1

Sig. (2-tailed)

.000

N

100

100

** Correlation is significant at the 0.01 level (2-tailed). The results show that participative management style is strongly correlated with employee motivation. The figure of .848 show high significance level.

4.4 REGRESSION Model Summary

Model 1

R

R Square

.848(a)

.718

Adjusted R

Std. Error of the

Square

Estimate

.715

4.704

A Predictors: (Constant), Participative Management Style

The value of R should range from 0-1. Larger value of R=.848 indicates a stronger relationship between the two variables. The larger R squared tends to optimistically estimate how well the fits the population.

5. Recommendations • • • • •

Improvement in communication to facilitate both participative style and employee motivation Better and clearly stated job description Share the companies’ achievement and progress with the employees regarding the companies policies Supervisors should be unbiased Other industries should adopt the participative style of management as well to improve their performance by enhancing employee motivation

REFERENCES 1. Marshall Sashkin (1976). 2. (Lewis & Renn (1992) 3. Cosier (1978) 4. Eisenhart (1989) 5. Schweigeret al. (1989). 6. Locke et al. (1986). 7. Heller and Wilpert (1981) 8. Millerand Monge (1986) 9. John L Cotton (1988) 10. Tjosvold et al (1987) 11. Stanton, 1993; 12. David et al (1995) 13. Tjosvold (1998) 14. Poon et al.(2001)

15. Kaufman (2001) 16. Glew et al (1995) 17. William James (1890) 18. Cofer & Appley (1964) 19. Robert Woodworth (1918) 20. Maslow (1939, 1943) 21. Fredrick (1959) 22. Vroom’s 'expectancy theory, Victor Vroom (1964) 23. David McClelland (1988) 24. Meyer (French et al (1966), Meyer et al. (1965)