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. Idowu A. Nwankwere

Journal/Publisher: Journal Of Business And Economic Development

Volume/Edition: 1

Language: English

Pages: 11 - 38

Abstract

Theoretical and empirical discourse has established the strategic importance of 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 xss=removed xss=removed xss=removed xss=removed xss=removed> 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.

Keywords: Decentralized decision making, Employees' goal deliveries, Participative leadership style, Communication flow, Employees' Commitment.
 


Other Co-Authors