DECENTRALIZED DECISION MAKING AND EMPLOYEES’ GOAL DELIVERIES: A STUDY OF SELECTED COMMERCIAL BANKS IN LAGOS STATE, NIGERIA.

DECENTRALIZED DECISION MAKING AND EMPLOYEES’ GOAL DELIVERIES: A STUDY OF SELECTED COMMERCIAL BANKS IN LAGOS STATE, NIGERIA.

Author by Dr. Olive Egbuta

Journal/Publisher: Journal Of Association Of Professional Bankers In Education (japbe)

Volume/Edition: 11

Language: English

Pages: 11 - 36

Abstract

decentralized decision making to the delivery of organization goals by employees, The
Nigerian Banking industry has been traumatized by bank failures ranging from
issues of poor corporate governance to poor lending decisions that were taken
centrally by the bank executives. This has sparked scholars to examine the
relationship that exists between decentralized decision making and employees' goal
deliveries in selected commercial banks in Lagos, Nigeria. A survey research design
was adopted for the study with a sample size of 250 management staff in the
corporate office of the three most profitable banks in Nigeria. A questionnaire
was adapted, validated and distributed among 250 randomly selected
management staff of the selected banks in Lagos State, Nigeria and 205 were found
usable. The research instrument was established through Cronbach’s alpha
reliability test and Confirmatory Factor Analysis with values of each ranging from
0.67 to 0.85 and 0.596 to 0.726 respectively. The findings revealed that there a
positive and statistically significant relationship between decentralized decision
making and employees' goal deliveries. The regression models as developed were
tested along the hypotheses and it was established that Participative Leadership
style (r = 0.221, R2= 0.049, p = 0.001 < 0 xss=removed>

R2 = 0.049, p = 0.001 < 0> the selected commercial banks in Lagos state. Employees' commitment (r = 0.119,
R2 = 0.014, p = 0.89 > 0.05) did not have a significant effect on employees' goal
deliveries in the selected commercial banks. The study concludes that participative
leadership style and communication flows significantly impact on employees goal
deliveries in the selected banks while employees' commitment showed no
significant impact on goal deliveries. It is therefore recommended that the
management of commercial banks adopt decentralized decision making as a
competitive edge over their peers.
 


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