Job satisfaction: how crucial is participative decision making?

Abstract

Purpose – The purpose of this paper is to empirically examine the role of perceived ability to participate in decision making in the workplace, with respect to job satisfaction. Design/methodology/approach – Data from the fourth wave of the European Value Survey, is utilised, and a bivariate probit model is employed to account for unobserved heterogeneity. Findings – Empirical analysis comparing univariate and bivariate probit models reveals that the results from the former are negatively biased; potentially indicating that prior research may have underestimated the impact of participative decision making (PDM) on job satisfaction. Additionally, it appears clear that the magnitude of the marginal effects for both socio-demographic and work characteristics do not differ when comparing workers with above and below average participation. More importantly, the authors find a substantial negative marginal effect of below average participation on job satisfaction (close to three times the magnitude of the next largest marginal effect estimated in the model), indicating how crucial it is for employers to actively pursue programmes that enhance PDM. Originality/value – This study contributes to the growing literature aimed at understanding drivers of satisfaction in the workplace. Adding to the scant empirical investigation of the influence of PDM on job satisfaction, the authors find strong evidence of a direct and positive impact, which is further amplified after controlling for unobserved heterogeneity.

Effect of Management of Performance Reward Systems on Subordinates’ Satisfaction with Job in Malaysian Fire and Rescue Department

“…Similarly, the ability of management to appropriately implement openness of IND and use PA to determine rewards based on performance scores is essential determinants of INJS. This finding also has supported the notion of role theory by Graen (1976) and extended research done by Pacheco and Webber (2016).…”

“…For example, the willingness of management to openly deliver the information about REWARDS, actively encourage subordinates to take part in the design and administration of REWARDS and properly use performance assessment in determining rewards based on subordinates performance may cause higher subordinates' job satisfaction in organizations (Pacheco & Webber, 2016;Yadav & Rangnekar, 2015).…”

“…This approach has overlooked the emphasis in the role of management in handling performance REWARDS. Their impact on specific facets of job satisfaction, namely intrinsic job satisfaction (INJS) and extrinsic job satisfaction (EXJS) (Pacheco & Webber, 2016;Yadav & Rangnekar, 2015). Consequently, findings from these researches have only provided general recommendations.…”

“…Previous researches were conducted using a direct effects model to evaluate MPRS in different organizational samples, such as perceptions of 20,000 subordinates from electronic component manufacturing organizations of Singapore and China (Malik, 2013), 331 subordinates of one Malaysian university (Anuar et al, 2014), 98 Indian business executives in India (Yadav & Rangnekar, 2015), 22,547 subordinates from 48 European countries (Pacheco & Webber, 2016), These researches revealed that the capability of management to appropriately implement IND, INV and PA in handling MPRS had enhanced subordinates' INJS and EXJS (Anuar et al, 2014;Malik, 2013;Pacheco & Webber, 2016;Yadav & Rangnekar, 2015). The literature has been used to develop the theoretical framework for this research as illustrated in Figure 1.…”

Effect of Participation in Performance Pay Systems and Employees’ Satisfaction with Job Conditions

“…The main idea of these theories has received good support from the PPSM research literature. For example, several recent studies were conducted using a direct effects model to investigate employee participation in diverse organizational backgrounds, such as perceptions of 132 manufacturing firm operating in a free trade zone in East Malaysia , 98 Indian business managers in India (Yadav & Rangnekar, 2015) and 22,547 subordinates from 48 European countries (Pacheco & Webber, 2016), These surveys advocated that the competency of management to properly implement participation styles in planning and operating PPSM had enhanced employees' SWJ, that are intrinsic and extrinsic job conditions in the respective organizations (Pacheco & Webber, 2016;Yadav & Rangnekar, 2015). Thus, the literature is used to establish a conceptual model for this research as exhibited in Figure PPO is positively associated with EXJS…”