Effect of Employee Participation in Decision Making On Performance of Selected Small and Medium Scale Enterprises in Lagos, Nigeria

Abstract

This study examined the effect of employee participation in decision making on   performance of selected SMEs in Lagos, South Western Nigeria. Data was sourced from one hundred and twenty nine (129) employees and twenty seven (27) owner/managers of the randomly selected SMEs, with the aid of questionnaire. The data generated were statistically analyzed using descriptive and inferential statistical tools. Results showed that, overall, employee participation in decision making had significant  positive impact on organizational performance  in the SMEs, with (? = 0.597, t = 6.572, P<.01).The implication of this finding  is that Nigerian SMEs should pay attention to human resource management  practices which, they have hitherto, largely ignored, in the course of running their businesses. Increasing employee participation in decision making will impact positively on their growth and potential for survival.

Key words: Employee participation, Decision making, Performance, SMEs and Nigeria.