ABSTRACT
The purpose of this research work is to highlight the impact of management of decision on workers performance. In today’s world, organisations are faced with thousands of decisions daily, and how they make these decisions will have a huge impact on their financial status (Forrester, 2003:44). These decisions set the tone for the entire organisation in terms of image, profits and customer service. That is why it is very important that organisations adopt best practices and execute good judgment when it comes to making decisions. Specifically, the study aimed to pursue the following objectives: to determine the effect management remuneration decision on workers performance, to identify the influence promotion decision on workers performance, to ascertain the how employees involvements in management decision affect workers performance, to evaluate the effect of effective decision making of training and development on workers performance. The study had a population size of 1,210, out of which a sample size of 303 was realised using Taro Yamene formula at 5% error to tolerance and 95 % level of confidence. Instrument used for data collection was primarily questionnaire and interview. The total numbers of 303 copies of the questionnaire were distributed while 283 copies were returned. The descriptive research design was adopted for the study. Four hypotheses were tested using Pearson’s moment correlation coefficient, chi-square (x2) and Z- test statistical tools. The findings indicate that Management decisions on worker remuneration significantly affect workers’ performance in manufacturing firm. Promotion positively influence workers performance in manufacturing firms, Employees involvements in management decision significantly affect workers performance in manufacturing firms, Training and development significantly affect workers. The study concluded that organizations are faced with thousands of decision on a daily basis, and how they handle and process these decision could have a substantial impact on their financial status and Wellbeing of workers. The study recommends that Organizations should make quality decision not considering the financial implication.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In today’s world, organisations are faced with thousands of decisions daily, and how they make these decisions will have a huge impact on their financial status (Forrester, 2003:44). These decisions set the tone for the entire organisation in terms of image, profits and customer service. That is why it is very important that organisations adopt best practices and execute good judgment when it comes to making decisions. Because the right decision at the right time could help organisations achieve great success whereas a wrong decision could end up costing them dearly (Capgemini, 2004:12).
The most important job of any manager is making decisions. It is also the hardest and the most critical. With decisions valued in their millions (Forrester, 2003:97) a bad decision can damage a image of organisation (Hammond et al., 2006:86). Fragmented and inaccurate data causes executives and managers to make delayed and flawed decisions costing millions (Forrester, 2003). Finding the right data at the right time and analysing it fast enough remains a challenge for businesses as poor decisions can be very costly (Teradata, 2004:54).
Managers within organisations are often making bad decisions, solving the wrong problems and ignoring uncertainty (Forrester, 2003:32). According to (Forrester, 2003:65), managers make bad decisions and find it hard to decide because of decision biases, they don’t want to give anything up nor do they want to make mistakes. That is why they procrastinate and only make decisions when events force them to. Managers often solve the wrong problems because they lack a structure for making decisions. As a result, they don’t generate value creating alternatives, they look for quick and partial solutions and they fail to seek out all the necessary data or clarify objectives (Forrester, 2003:12). Managers also tend to ignore uncertainty they focus on a single outcome, such as the most likely case, and take refuge in ambiguity or imprecise language. Managers use the complexity of uncertainty as an excuse for not deciding (Forrester, 2003:75).
Decisions play a vital and crucial role within large organisations, and how they react could very well have a substantial impact on their financial standing. Failure to make the correct decision could lead to huge financial loss, while on the other hand making the right decision could help achieve a financial gain. The importance of the correct decision being made cannot be signified. Therefore, all of the factors affecting decision making need to be considered when deciding on a course of action.