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Metropolitan Journal of Business and Economics

Effect Of Employee Involvement (El) On Organizational Performance. A Case Study Of Mukwano Industries

Authors: Niwahereza Joan1 , Otim John William2

Journal: Metropolitan Journal of Business and Economics (MJBE)

Volume/Issue: Volume 5 - Issue 3

Published: 01 Jan 1970


Abstract

The study examined the effect of employee involvement on organizational performance at Mukwano Industries, one of Uganda's leading manufacturing and consumer goods companies. The research investigated how four dimensions of employee involvement, namely participative decision making, employee empowerment, information sharing, and team-based work structures, influenced the overall organizational performance of the company over a period spanning 2018 to 2023. A mixed-methods research design was adopted, combining quantitative data drawn from the company's human resources records, performance appraisal reports, productivity reports, and financial statements with qualitative insights gathered through structured interviews and focus group discussions with employees and senior management officials. The quantitative data were analysed using descriptive statistics, correlation analysis, and multiple regression analysis, while qualitative data were analysed thematically. The results revealed that participative decision making and employee empowerment were the strongest and most statistically significant predictors of organizational performance, with p-values of 0.001 and 0.003, respectively. Information sharing also demonstrated a significant positive relationship with organizational performance (p = 0.014), while team-based work structures, though positively associated, showed a comparatively weaker but still statistically significant relationship (p = 0.039). The study concluded that employee involvement played a substantial and measurable role in driving the organizational performance of Mukwano Industries, and that the effectiveness of involvement practices was greatest when they were applied holistically and embedded deeply into the culture and operations of the organization. It was recommended that Mukwano Industries continue to expand and deepen its employee involvement practices, particularly in the areas of decision making and empowerment, and that other manufacturing companies in Uganda consider adopting similar strategies as a means of improving their own organizational performance. Future researchers were encouraged to explore the moderating role of leadership styles and organizational culture in shaping the relationship between employee involvement and performance.
Keywords

Employee involvement, organizational performance, participative decision making, employee empowerment, information sharing, team-based work structures, manufacturing, productivity, Uganda, Mukwano Industries.

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