THE ROLE OF EMPLOYEE PARTICIPATION IN DECISION-MAKING AND ITS IMPLICATION ON JOB PERFORMANCE
Peranan Penglibatan Pekerja Dalam Membuat Keputusan Dan Implikasinya Terhadap Prestasi Kerja
Mohammed, J. H. Alzaanin and Ibrahim Fahad Sulaiman
Faculty of Leadership and Management, Universiti Sains Islam Malaysia
Abstract
This paper discusses Islamic management perspective of employee participation in decision- making on job performance. The decision-making role on employee working performance were extensively addressed. Data utilized were gathered from books, published journal articles in Islamic and conventional perspectives. Discovering literature gab and carefully using systematic approach of reviewing literatures based on decision-making and employee performance. Participation of employee is seen as crucial and vital for the vision and mission of the organization in attaining its goals. Therefore, employee participation has remained and suggested to play a significant role in up bringing the organization through a constructive decision-making. Hence, the implementation of decision-making and involving employee needs attention in the context of Islamic management to contribute to the existing literature. In addition, a clear understanding in strengthening the involvement of participative Islamic management through a concise decision-making. This review concluded that Islamic management perspective has a positive role to play in employee participation decision-making on job performance in the organization.
Keyword: Employee Role, Employee Participation in Decision-Making, Decision-Making, Islamic management, Job Performance.
INTRODUCTION
Contemporary organizations are committed to find sophisticated ways that are more flexible and adaptive in order to maintain their competitive edge. The prime factor is the competition increase importance of employees in the organizational arena. This is more evident in the growing recognition for employee participation in organizational decision-making process (Oluwatayo, Opoko, & Ezema, 2017). Therefore, in order to increase the job performance, organization and employees, the focus on decision-making in supporting the well-being, development and achievement of the organizational goals (Shahzad, Farrukh, Kanwal, & Sakib, 2018). Understanding the performance of the employee is the key element to a successful organization in various levels. Moreover, most important priority is to improve the performance of employees through change, means and designs of supervision and evaluation and the development of job performance as an asset that cannot be contested (Alefari, Barahona, & Salonitis, 2018) .
Contemporary challenges facing organizations have led many to refocus attention on managing their performance and exploring ways to improve employee performance. Enhancing the performance management process is a focus on enhancing employee engagement as a driver for increasing
performance. To this end, we present a concept-based approach to developing employee engagement and discussing the elements of the performance management process that can enhance its occurrence, we also provide a form for participation(Gruman & Saks, 2011).
LITERATURE REVIEW Employees Role
The connotation of employee involvement varies in the term is used at different times to refer to psychological situations, traits and behaviors as well as their precedents and outcomes (Macey &
Schneider, 2008). Employee participation is defined in a variety of ways by academic researchers which is based on three concepts of employee behavior, regulatory environment, job attributes and leadership (Yu, 2013). It is noted that the leader can improve employee engagement by meeting basic psychological needs and this is usually achieved by enhancing employee inspiration and making them feel that they contribute to the task, strength engagement of the organization. Basically, inspirational behaviors are expected to strengthen and connect directly to the needs of the sense of control and decision-making because they contribute to organizational goal, because the idea of involving leadership is strongly dependent on the theory of self-determination (Nikolova, Schaufeli,
& Notelaers, 2019). This concept supports decision-making on the exploitation of available resources (Teisman, 2000).
Gaining a competitive advantage through the team approach has become a new strategy followed by organizations. Studies indicate that the team’s characteristics and participation in decision-making for large organization. The general perception is that decision-making should be at the higher management level, and if employees want to participate, they must show initiative.
Consistently, unlike small business is focused on team and all member opinions are considered (Sahatqija, et al., 2019). The decision-making process is to choose between alternatives in pursuit of goals, by gathering information about these alternatives, decision-making can be defined as a choice between future alternatives (Xu, 2015).
Employee Participation in Decision-Making
Participative decision-making means employee decision-making, it is used interchangeable.
Employee Participation or Involvement is defined as a process of involving and empowering employees to use their input towards creating value and improving organizational performance (Pambreni, Khatibi, Azam, & Tham, 2019). Employee Participation also mean direct involvement or engagement of employees towards applying ideas, expertise, and efforts in solving organizational problems and achieving its goals or objectives (Okoroji & Chukwu, 2019).
Similarly, Booyse (2018) also defines employee participation as the totality of forms, that is direct or indirect involvement of individuals and groups to contribute to the decision-making process (Booyse, 2018). On the other hand, Merzadinova (2017) defined employee participation as the distribution of power between employer and employee in decision making processes, either through direct or indirect involvement (Merzadinova, 2017). In addition, employee participation also refers to employee involvement in decision making at the workplace (Refslund, 2016). Employee Participation represents the combination of task-related practices, which aim at maximizing employee sense of involvement in their work place and their commitment to the wider organization
(Beloor, Nanjundeswaraswamy, & Swamy, 2017). In attempt to define the above concepts different researchers have defined it differently making it to be more multifaceted to understand.
Beloor, Nanjundeswaraswamy, & Swamy (2017) have identified that decision making make can be daily, weekly, monthly or annually depending on the importance or need in any organization.
The researchers argue that in some organizations, decision making ability is either centralize on the top level of management or decentralize across levels of management (Beloor, Nanjundeswaraswamy, & Swamy, 2017). Managers at all levels and in all areas of organizations make decision. For instance, top level managers make decisions about their organization’s goals, where to locate manufacturing facilities, or what new markets to move into middle and lower level managers make decisions about production schedules, product quality problems, pay raises, and employee discipline. Making decision is not the task of managers alone; all organizational members make decisions that affect their jobs and the organization they work for (Henilane, 2016). Decision is a choice among two or more alternatives in process of choosing among two or more alternatives with the intention of solving a problem or making the best use of an opportunity (Nabi & Nabi, 2018).
The author stresses that in most organization, decision-making depends on the degree of autonomy built into jobs. Employees within any organization react promptly in taking decision if chances are been granted to them. Decisions are usually made to either to solve problems or to utilize an opportunity. Employee participation in decision-making can save the organization from deteriorating or falling into danger.
Decision-making is defined as a process of making a choice from several alternatives to achieve a desired result. Miswanto (2020) defined decision-making as a process of identifying and selecting a course of action to deal with a specific problem or take advantage of an opportunity (Miswanto, 2020). According to Bhardwaj (2016) decision making include the following; problem identification, information gathering, developing alternatives, analyzing alternative and identifying decision criteria (Bhardwaj, 2016). On the other hand, Vrba and Brevis (2002), also defined decision making as the process of selecting an alternative course to solve a problem. Decision-making involves mapping the likely consequences of decisions, working out the importance of individual factors, and choosing the best course of action to take (Reyad et al., 2019). Reyad et al. (2019) also argue that it is a method of choosing between alternatives (Reyad et al., 2019). In addition, Schussler et al. (2018) argues that decision making is sometimes difficult for both individual and group, though the outcome depends on organizations, where the stakes are considerable and the impact is widespread (Schussler et al., 2018). Employee participative decision making concerned with leader behavior that managers perform in involving their employees in making decision (Kim & Patel, 2017). It is deals with shared decision making in the work environment between managers and subordinates. It explains how businesses can improve their performance by cultivating employee interest and dedication. The forms of participation were Consultative participation, Short-term participation, Informal participation, Representative participation.
Decision-Making
Decision-making as a central concept in management and management theory has gone through controversial stages of nearly 50 years. During this time, its image and meaning have largely changed that decision-making is understood as a series of interlocking preliminary works that interrupt the flow of human experiences in order to facilitate the making of the sense of decision- making (Chia, 1994). In the context, smart and advanced management, decisions are made on three
main levels: strategic and tactical and operational. The strategic level includes the processes and activities for setting long-term goals, developing policies, visions or inclusive values while the tactical level considers mid-range decisions to achieve the specified results (Chaudhuri, Dukovska- Popovska, Subramanian, Chan, & Bai, 2018). At operational level, decisions are often used to give operational solutions or to evaluate the results obtained from the lower level and normal operating practices (Tran Thi Hoang, Dupont, & Camargo, 2019), the content of the decision-making process depends on the information and flow of this appropriate and vital information to take appropriate and more correct decisions(Chaudhuri, Dukovska-Popovska, Subramanian, Chan, & Bai, 2018). Several methods have emerged for taking decisions, measuring the relative weights, and the method of making and making these decisions (Dong, Liu, Liang, Chiclana, & Herrera-Viedma, 2018).
Decision-making process goes through stages of searching for information and changes in decision- making strategies through stages and the quality of decisions. Decision-making can be defined as a set of alternatives and options that are chosen based on various information and treatments (Levin, Huneke, & Jasper, 2000).
EmployeesParticipation in Islamic Management
Islamic principles have urged fairness and concern for employees, and employees should be treated well and respected. (Hadjri, Perizade, Marwa, & Hanafi, 2019). Islamic management empowers employees to control their behavior for the benefit of the organization, and they are also encouraged to be responsive and responsible at work everyone on the team is a supervisor and subordinate at the same time, communication science experts believe that despite the general censorship strategy public and employee participation is encouraged empowering them, as indicated in the Quran in many verses (Moghimi, 2018). The Islamic administration has emphasized the importance of teamwork, and that one of the most important principles of Islamic management is the principle of consultation and participation in opinion and decision-making (Branine & Pollard, 2010).
Islamic Management and Job Performance
Islamic management is a system whose first principles were originally laid down by the Prophet Muhammad in Medina with the establishment of the first Islamic state (Branine & Pollard, 2010).
This type of management, in its simplicity, laid the foundation of civilization for many years afterwards. One of the most prominent features of the Prophet’s administration was the Shura Council, and he was keen to create an environment of consultation, participation and consensus among the believers. Later, with the spread of Islam to the south, north, east and west, it was necessary to introduce specific regulations for Muslim rule outside the land of the Arabian Peninsula, with full adherence to Islamic principles (Moghimi, 2018). And the directions of the example of the Prophet. As the control of Islamic dynasties and empires expanded, the system of public administration became more complex and less centralized (Branine & Pollard, 2010). There are many values and standards that managers must adhere to in Islam. Values such as trustworthiness, responsibility, loyalty, discipline, dedication, diligence, cleanliness, cooperation, good behavior, gratitude and moderation guide the principles by which human resources are managed (Moghimi, 2018). These principles are supported by verses from the Holy Quran and the Sunnah of the Prophet Muhammad. Basic principles of Islamic management, these challenges are very evident in human resource management practices. Thus, emerged the concept of Islamic human resources management, and this means that the attempts to coordinate between employees and modify their
relations with the employer and the organization must be in accordance with the book and the Sunnah. Studies in this field may focus mainly on Islamic work ethics and their impact on the organization in terms of commitment, satisfaction and loyalty. Islamic management points to the lack of sufficient content in Islamic human resources management (Moghimi, 2018). The Islamic administration emphasizes attention to the worldly needs of employees and that all religions call for justice and it is a universal value. The Holy Qur’an also emphasizes honesty and justice in commerce and business, and the focus on the equal distribution of wealth in society as well as in other Quranic versus (Fesharaki & Sehhat, 2018), Islamic management teachings differ from traditional management (Bakar, Ali, & Munir, 2018). The Islamic management has paid attention to job performance and the promotion of participatory decision-making and job satisfaction for employees, it follows that shura is a right of the followers of Islam that must be practiced collectively (Al-Daba
& Johdi Salleh, 2014).
Job Performance
Employee achievement of work requirements (Ali, Elmi, & Mohamed, 2013) a set of tasks that can be measured and assessed by staff such as fulfilling specified duties, meeting deadlines, efficiency, effectiveness and efficiency in the performance of work achieve the objectives of departments (Iqbal, Anwar, & Haider, 2015). Employee performance was defined as the degree to which an employee performs duties and responsibilities. Whereas employee performance has been related to results and accomplishments (Bose & Emirates, 2018). Employee performance cannot be defined in general performance standards and can be interpreted only in the context of organizational situations and viewpoints (Bose & Emirates, 2018). An employee's performance is defined as the degree to which an employee's task is completed, which reflects how the individual requirements of the job are achieved and many factors affect employee performance such as satisfaction, motivation, and stress (Mira & Odeh, 2019).
Job performance is the quality and quantity expected in a particular job from an employee to perform their job well, which is most of the time determined, by motivation and the will and ability of the individual employee to do the job. Performance refers to the extent to which employees are able to fulfill a job assignment. Performance can be observed both individually and at the organizational level (Nusari, Al Falasi, Alrajawy, Khalifa, & Isaac, 2018). Yuen & others (2018) also stated that there is only a modest positive correlation between jobs performance and job satisfaction, and that job satisfaction is considerably correlated with job performance of employees. Most studies focused on determining the functionalities in the in terms of results where they are more important to employers. Tohidi & Jabbari (2012) the present definition of innovation and entrepreneurship monitoring is from the perspective of various scientists. Component innovation of new topics discussed at the end of the 21st century world would be slowly as the criterion to be considered in organizations.
CONCLUSION
The effect of employee participation in decision-making and corporate performance is concurrent and revealed in this review. Therefore, performance of employees participate in decision-making and making a deep difference in the performance of organization whose employees participate in decision-making, while demonstrating a high level of commitment to employee participation in performance decisions(Kuye & Sulaimon, 2011). The participation of employees in decision-making
will be achieved through goals of governance and some laws imposed on organizations. (Shields, Brown, Kaine, & North-Samardzic, 2015). The role of employee participation has emerged in raising the level of the organization’s performance, as studies have shown the effect of this participation in increasing production and performance (Alsughayir, 2016). There is a significant positive correlation between direct employee participation in decision making about performance in many ways, such as raising employee morale and improving decision quality (Nnamseh, 2016). The regular consultations and meetings between management and employees also had a positive relationship with performance because it enhances trust between management and subordinates, the necessity of employee participation in sensitive issues and open communication (Nnamseh & Ayandele, 2016).
Unfortunately, employee disengagement plays a negative role in job performance as employees are often left out of the picture when deciding how to achieve these goals. Therefore, lack of employee participation in the decision-making process may lead to job dissatisfaction which may ultimately lead to lost working hours, employee turnover and lower productivity among other things that may negatively affect the fortunes of organizations.
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