The impact of participative management on organization performance and employee effectiveness

Chang, Laura Leng Yi. (2012) The impact of participative management on organization performance and employee effectiveness. [Final Year Project Report] (Unpublished)

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Abstract

This study focuses on investigating the impact of participative management on organizational performance and employee effectiveness in Malaysian Small and MediumSized Enterprises (SMEs). Participative management was represented by the five job characteristics found in Job Characteristics Model (JCM) which are skill variety, task identity, task significance, autonomy and task feedback. Specifically, this study aimed to investigate the impact of each of the job characteristics on organizational performance and participative management respectively with mentoring as a moderator. Twelve hypothesized relationships were tested. Data were collected from a total of 250 employees in Malaysian SMEs. Non-probability method was utilized to distribute well-structured questionnaires. The empirical findings were limited to small samples from various business sectors. Data coUected was analysed using SPSS Version 17.0 for Microsoft Windows and SmartPLS 2.0. Confirmatory factor analysis, convergent validity, discriminant validity and reliability test was executed to gauge the measurement model, and t-value utilized to assess structural model. The results obtained were appealing as participatory techniques do not propel participative management as having a positive impact on organizational performance where as only skill variety and task significance have a positive impact on employee effectiveness. Mentoring only moderates the relationship between participative management and employee effectiveness. This study may be practical for executives to comprehend the scope of participative management and its implications towards better strategic planning to achieve organizational goals. While more research is being done in this area, this paper has demonstrated the extend of participative management's impact on organizational performance and employee effectiveness to both scholars and practitioners.

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