THE EFFCT OF EMPLOYEES’ PARTICIPATION IN DECISION MAKING ON ORGANIZATIONAL PERFORMANCE: THE CASE STUDY OF THREE STAR HOTELS IN GONDAR TOWN.

Abstract

ABSTRACT Employees’ participation in decision making is claimed to enhance the performance of hotels and it helps to be competitive in the hospitality industry but the absence of employees participation in decision making process could result in job dissatisfaction which probably could lead to confrontation. With this in mind ; the purpose of the study was to investigate the effect of employees’ participation in decision making on organizational performance in the case study of three star hotels in Gondar town. To be this end, the researcher employed quantitative approach and co relational research design. At the same time stratified proportional sampling techniques is used to determine the sample population for the study . A self administered questionnaire on five point Likert scale basis was used to collect data from 122 sample respondents of the selected three star hotels, and 91.8% of the questionnaire, which is 112 were returned. In addition to the primary data, a secondary source of data was collected from different books and articles. To analyze the collected data, both descriptive (frequency distribution) and inferential (correlation and regression) statistics were utilized using SPSS version 20. Correlation and regression analysis were employed to check the relationship between the dependent variable; organizational performance and employees participation in decision making (independent variable). The findings of the study indicated that formal& informal participation was the most influential factor followed by decision issues for participation that affects organizational performance of the selected three star hotels. And also degree of involvement had a positive and significant effect on organizational performance but direct & indirect participation had positive but insignificant effect on organizational performance. As a result, the researcher recommends the dimensions of employees participation in decision making on the above listed should be applied as integrated tool to enhance the performance of the selected three star hotels in Gondar.