THE EVALUATION INTO THE IMPACT OF MANAGEMENT DECISION IN RELATION TO EMPLOYEE
Managers play the main factor in organizing work environment structure. They have the power to influence the dynamics between workers. How effective a manager is in expending his duties is a big factor in employee productivity, in the retention of employees, and in raising the morale of workers in an organization.
Employee turnover is a key concern of many human resources division of every company. Employee turnover adds expenses to a company in terms of finding manpower replacement and training. If low morale is present, it follows that there will be lesser productive work hours. Most often, experienced employees are replaced with those who have lesser experience or even those with no experience at all. This usually causes negative effects as work errors especially when dealing in customer service. Aside from the usual resignation reasons as higher pay, more experience, more trainings, and other personal and career reasons, relations between employee and management is, at times, the culprit. It may even be the main but hidden cause why an employee will leave an organization. Sensible employees usually do not reveal their problems with management on exit interviews because they do not want to burn their bridges. This way, statistics in HRM rarely show this as one of the top causes of resignation.
One of the most advantageous management decision is the utilization or the addition of employees in decision making mostly pertaining to goals and policies. This decision has been shown to empower employees to enhance their performance and gives the employee the feeling that one is important to the organization, hence, increasing job satisfaction. It also fosters to the employee a feeling of attachment and loyalty to the organization that he or she helped to succeed. This is a modern management philosophy that involves the employee to add to constant improvement and the success of their organization.
An ineffective manager frustrates the employees. They are not given the venue to voice out opinions and suggestions. They even sometimes find themselves unofficially doing the job of the inefficient manager. If participation to decision making is given but the manager withholds support , they may feel disappointed and dissatisfied with a policy they helped design but was not executed or not implemented at all because of management indifference. Opposite to the former result, job satisfaction and dedication to the company is unconstructively impacted.
Studies have shown that impact of management decision on employee productivity can be channeled through effective communication. When managers are effective in portraying their role, productivity grows. Likewise, employee turnover is lessened.
Organizational practices that prefers employee involvement in decision making showed advantages and benefits to both employers or management and employees.
First of all, it tells the employees that their input is valued and important to the company. Secondly, It helps recognize or bring into focus employee career growth needs and development. Next, it can reduce stress related to the performance of a job. It also improves communication channels between managers and employees that can help elucidate roles and responsibility as well as job expectations.
Among the plus factors are greater innovation, greater efficiency in the sense that production is higher but at a lower cost, lower employee turnover and absenteeism, increase in customer service quality, stronger motivation to do one’s best, and lower employee absenteeism.
To summarize, management decision coupled with management effectiveness and competence give positive impacts on employee productivity. Management decision together with management inefficiency and indifference give negative impacts on employee productivity and job satisfaction.
Credit:ivythesis.typepad.com
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