Measuring Organisational Effectiveness through Employee Involvement in Malaysian Manufacturing Industry

Abstract

Business organisations need to operate effectively in ensuring the company’s overall success. Besides, employee involvement is one of the important issues that should be focused by organisations nowadays in ensuring organisation effectiveness in strengthening the company performance. In light of this, the current study looked into employee involvement and how it affects the organisational effectiveness in the manufacturing industry in Selangor. It was conducted to analyse which elements of employee involvement that have the most impact on organisational effectiveness. Three dimensions of employee involvement were tested against organisational effectiveness in this cross-sectional study, namely employee empowerment, team orientation and capability development. The primary data were collected from a group of 206 employees in Selangor through a self-administered questionnaire survey. Analysis of descriptive, correlation and multiple regression were carried out to test the variables of employee involvement for the predictions on organisational effectiveness. The results of the study revealed that all three independent variables which are employee empowerment, team orientation and capability development has significant influence towards organisational effectiveness. In view of this, it is highly recommended that all business organisations should encourage employee involvement and start building a long-term positive relationship with its employees All these will ensure that business organisations are managed effectively and corporate goals and objectives are successfully being achieved.