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JUNE 2011<br />

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2<br />

Employee Participation - Trust in Management and Power Distance<br />

White & Ruh (1973) had defined employee participation as, “The degree to which<br />

employees believe that they can make decisions about how they do their work”. It must be noted<br />

that employee participation in turn depends upon the support it gets from the organization. The<br />

organizational structures and process need to support the employee participation process thus,<br />

leading to organizational participation. Strauss, (1998) had defined organizational participation<br />

as, “A process which permits employee to exert some influence over his/her work in the<br />

organizational environment”.<br />

In this <strong>paper</strong> we have focused on the employee participation in the context of their “say<br />

in the decision making” in the organization. Issues like whom to involve, when to involve; and<br />

how to involve, hold significant importance in determining the employee participation. In all,<br />

this suggests that regardless of how the participation in decision making is applied, the role and<br />

level of participation needs to be made very clear (Ladd & Marshall, 2004). Rausch (1996) had<br />

suggested that best results of employee participation are obtained if top management leads the<br />

ways by example and encourages others.<br />

As per research evidence a positive relationship exists between employees’ believe that<br />

they have the ability to participate in decision making. This supports that there will be positive<br />

impact on the work environment (Lawler, 1994; Sullivan, 1992). According to Rausch (1996),<br />

the extent to which employees have access to the information, required to participate in decision<br />

making serves as a limiting factor. He argues that not every employee shall exercise employee<br />

participation but only the ones who are capable to handle increased responsibilities, non routine<br />

tasks and possess work - maturity. Maher & Piersol (1970) had discovered that the direct<br />

involvement and participation of employee with his manager in the goal-setting process results<br />

in two- fold benefit- firstly, the participation process leads to a greater clarity of what to do and<br />

how to evaluate the outcomes, secondly, increased mutual commitment was witnessed upon the<br />

agreed upon results.<br />

The high value of power distance in Pakistani culture will not permit employees<br />

participation in any decision making. Thus the trust of employees in management will be<br />

adversely affected. Since Pakistan is rated higher on the power distance, which should have an<br />

impact on the employee participation process in two ways. First, managers may be reluctant to<br />

involve employees in goal setting and decision making activities because they may perceive this<br />

as "giving up" their own power and authority. In a high power distance culture, this perception of<br />

empowerment may cause the concept to be rejected. Second, employees may not accept a more<br />

empowered role because they expect the manager to be the person "in control." The above<br />

literature review leads to the development of second Hypothesis;<br />

H 2: The positive relationship of Employee Participation with Trust in Management is<br />

reduced due to higher power distance dimension of culture.<br />

Feedback -Trust in Management and Impact of Culture<br />

Robbins (2003) defined feedback c as the, “extent to which carrying out the work<br />

activities as per job requirements results in the individual obtaining direct and clear information<br />

about the effectiveness of his or her performance”. Stanley & Standen (2001) had reviewed the<br />

work of Rozell & Gardner (1995) and they have suggested on condition that positive feedback to<br />

skeptical workforce, whenever possible, will result in avoiding personal and global attributions<br />

for employee failure. Randolph (1995) has concluded that sharing of performance related<br />

information with employees will keep them informed about their impacts on organizational<br />

outcomes and will raise the employee’s trust in management Ardalan et al. (1994) research<br />

results support the assumption that permitting employee’s discretion in decision making process<br />

and providing them with outcome feedback will result in to higher quality decisions. These<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1036

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