Business Beyond Profit Motivation Role of Employees As Decision-Makers in The Business Enterprise

Business Ethics and Social Responsibility
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Business Beyond Profit Motivation Role of Employees as Decision-Makers in
the Business Enterprise
Module 016
Business Beyond Profit Motivation
Role of Employees as Decision-Makers in the Business
Enterprise
In many businesses and companies, the entrepreneur or top management are
the one's involved in decision making. What if employees are given
opportunities to share insights in decision making?
At the end of this module, you will be able to:

1. Define and understand important terminologies;
2. Identify reasons why employees should be involved in decision making;
3. Know the disadvantage of having a group decision making.
Role of Employees as Decision-Makers in the Business Enterprise
What is an employee?
An employee is an individual who was hired by an employer to do a specific task,
assignment or a job. The employee is hired by the employer after an application and
interview process results in his or her selection as an employee. This selection occurs after
the applicant is found by the employer to be the most qualified applicant to do the job.
What Does an Employee Do?
An employee may work as a part-time, full-time or is temporary in a specific job

assignment. An employee negotiates his or her skills, expertise, knowledge, experience, and
contribution in exchange for a defined remuneration from an employer.
Reasons to Involve Employees in Decision Making
The solid foundation of any successful company is its people. Employees represent a
source of knowledge and ideas, but oftentimes that resource remains untapped.
Involving employees in the decision-making process not only empowers them to
contribute to the success of an organization, but also saves the company time and
money, in increased productivity and reduced outsourcing.
Course Module
Involving Employees in Decision Making is a Key to Employee Engagement. Some of
business organizations refer to their employees as “employees”; but there are other
business organizations that refer to their employees as “associates,” “staff
members,” or “team members.”
There are businesses who exercise this simply because there is a direct connection
between how involved employees are in the decision making in their department or
team and their overall morale, motivation, and satisfaction with their jobs.
Companies and departments who have a higher level of employee involvement in

decision making show higher levels of employee motivation and satisfaction.
Benefits in involving employees in decision process:
"Participative management (PM) is known by many names including

shared leadership, employee empowerment, employee involvement,
participative decision-making, dispersed leadership, open-book
management, or industrial democracy."
1. The associates feel they are a valued, appreciated, respected and an important
part of the team, of the business enterprise. When associates are involved in the
decision making, they feel that people in ownership and management positions
value them as a significant contributor to the team’s success. When people feel
valued, they will usually raise their level of effort and commitment to ensure the
department’s or company’s success.
2. The associates are able to make daily decisions because they have precise
information regarding the direction of the company or department. Managers
and supervisors who do not share information or involve associates in the
decision making are usually the same people who complain that associates are
unable to make good decisions.
3. The associates feel a command of responsibility for making the decision. When a
person is responsible for making a decision, and the decision turns out to be a
erroneous, the person will do whatever to correct the decision and make things
right. When associates are involved in making the decision, the chances of the
decision being a success increase since all members of the team are dedicated to
correcting and improving the parts of the decision that are not in position with
the department’s or company’s vision and values.
4. The associates will focus on future-oriented problem solving rather than create
reasons to blame their current problems on the administration. Associates who
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have not been involved in making the decision have co-authored some great
comments such as, “This wasn’t my decision,” “Whose brilliant idea was this?” or
“This will never work.” All of these comments demonstrate two things: First, the
employee is not in harmony with the decision and second, when the decision
goes wrong, and it will because the associate is not committed to the decision’s
accomplishment, the employee has someone else to blame.
5. Actively engaging associates in the decision-making process increases overall

company morale. Many companies have a distinct separation of power between
management and workers; however, active employee involvement lowers that
gap, opening the lines of communication between supervisors and employees. As
a functioning participant in the decision-making process, employees understand
their ideas are an important contribution to the company, and give them the
power to influence the outcome of their work, leading to increased job
satisfaction and a positive attitude, not only toward their position but also to the
company itself.
Self-esteem and motivation is higher in businesses where associates are

involved in the decision making. They know they make a difference to the
department’s or company’s success. When people know they make a difference,
they find it easier to be motivated and contented with their employment.
6. It frees up a manager’s time to contribute to the department’s success in other

area. When associates are able to make the decisions that impact their work, it
frees up the manager or supervisor to work on more future-oriented issues that
will ultimately make the department or company even more successful. For
example, a manager will now have the time to look at how the department’s or
company’s customers are changing their demands and level of expectations.
With this new knowledge, the manager can lead a discussion on what changes
will have to occur in the next decade to meet the changing customer demands. In
addition, managers will have more time for changing procedures and refining
processes.
7. Associates are Internal Resources. Using employees in the decision-making

process, rather than outsourcing, saves money, time, and offers the company
long-term reliable assistance from those who know the corporation well. Hiring
an outside consulting firm is expensive and can take up valuable resources in
fees and the time spent updating outside consultants in various aspects of the
company. However, employees are already aware of these processes, offer
Course Module
insightful knowledge of the company needs, and understand the policies of the
company overall.
8. It promotes productivity. When associates are involved in making decisions,

they gain a professional and personal stake in the organization and its overall
success. This commitment leads to increased productivity as employees are
actively participating in various aspects of the company and wish to see their
efforts succeed overall. This is not only beneficial to company growth, but is also
on-the-job training for workers. The increase in responsibility expands
employee skill sets, preparing them for additional responsibility in the future.
9. Teamwork is an important factor in a business success. Participation in the

decision-making process gives each associates the opportunity to voice their
opinions, and to share their knowledge with others. While this improves the
relationship between manager and employee, it also encourages a strong sense
of teamwork among workers. The expression of viewpoints opens dialogue
between co-workers, with each worker bringing their individual strengths to a
project. It is also a good way to gather information about the employees as to
how they work in a team environment, and where training may be necessary, all
of which leads to an increase in effectiveness, and ultimately an increase in good
teamwork and performance.
Involving associates may sound easy. But there are some basic philosophical
challenges every manager or supervisor must overcome.
These are some of the challenges:

1. It takes more time up front to involve associates.
2. It takes trust on behalf of the manager.
3. It takes forgiveness on the part of the manager.
Involvement is worth the risk. It results in associates who are dedicated,

committed, and who produce greater results…both in quality and in
profits…than a group of associates who are not involved. You will be satisfied
with the long-term results. Go for it!
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Disadvantages of Group Decision Making
Distribution of Responsibility
One possible disadvantage of group decision making is that it can create a

distribution of responsibility that results in a lack of liability for possible negative
outcomes. If there are several persons involved in a responsible for a decision, then
no one is. Moreover, group decisions can make it easier for members to reject
individual accountability and blame others for wrongful decisions.
Less Efficiency
Group decisions can also be less efficient and less organize than those made by a
single person, a manager or a specific individual. Group decisions can take
additional time because there is the requirement of participation, discussion, and
coordination among group members.
Group think
Group think is the practice of thinking or making decisions as a group in a way that
discourages creativity or individual responsibility. Groupthink is a psychological
phenomenon that occurs within a group of people in which the desire for harmony
or conformity results in an irrational or dysfunctional decision-making outcome. By
isolating themselves from outside influences and actively suppressing dissenting
viewpoints in the interest of minimizing conflict, group members reach a consensus
decision without critical evaluation of alternative viewpoints.
Loyalty to the group requires individuals to avoid raising controversial issues or

alternative solutions, and there is a loss of individual creativity, uniqueness, and
independent thinking. The dysfunctional group dynamics of the in-group produces
an illusion of invulnerability, an inflated certainty that the right decision has been
made. The in-group significantly overrates its own decision-making abilities and
significantly underrates the abilities of its opponents
The Manager’s Role in Group Decisions
The manager’s role in group decision making is to create a supportive context for the group.
Course Module
Glossary
Associate: a partner or colleague in business or at work.
Decision Making: the action or process of making decisions, especially important ones
Motivation: the general desire or willingness of someone to do something
Self Esteem: confidence in one's own worth or abilities; self-respect

Teamwork: the combined action of a group of people, especially when effective and
efficient
References and Supplementary Materials
Books and Journals

Hector S. De Leon ; 2005; The Law on Partnership and Private Corporation ; Philippines;
Rex Bookstore
Laura P. Hartman and Joe DesJardine; 2011; Business Ethics Decision Making for Personal
Integrity; Philippines; McGraw Hill
Online Supplementary Reading Materials

Participative Decision Making; https://en.wikipedia.org/wiki/Participative_decision-
making; June 24, 2017
Online Instructional Videos

Why Employees Engagement Matter; https://www.youtube.com/watch?v=dSfDROxCuxI;
June 24, 2017

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Business Ethics and Social Responsibility

At the end of this module, you will be able to:

Role of Employees as Decision-Makers in the Business Enterprise

What Does an Employee Do?

An employee may work as a part-time, full-time or is temporary in a specific job

Reasons to Involve Employees in Decision Making

Companies and departments who have a higher level of employee involvement in

Benefits in involving employees in decision process:

"Participative management (PM) is known by many names including

5. Actively engaging associates in the decision-making process increases overall

Self-esteem and motivation is higher in businesses where associates are

6. It frees up a manager’s time to contribute to the department’s success in other

7. Associates are Internal Resources. Using employees in the decision-making

8. It promotes productivity. When associates are involved in making decisions,

9. Teamwork is an important factor in a business success. Participation in the

These are some of the challenges:

Involvement is worth the risk. It results in associates who are dedicated,

Disadvantages of Group Decision Making

One possible disadvantage of group decision making is that it can create a

Loyalty to the group requires individuals to avoid raising controversial issues or

The Manager’s Role in Group Decisions

Self Esteem: confidence in one's own worth or abilities; self-respect

References and Supplementary Materials

Books and Journals

Online Supplementary Reading Materials

Online Instructional Videos

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