Impact Of Employee Involvement as a Pillar Behind the Success of Corporate Governance: A Case of Kenya Literature Bureau

Abstract

Effective corporate governance practices are the driving force behind successful operations in most organisations. An organisation that is to thrive well in the competitive business world needs to employ a strong and efficient corporate governance policy and strategy to support it to form a strong corporate identity, and cater fully for the employees. Modern interpretations of corporate governance place more emphasis on the relationships between shareholders and managers or directors when it comes to the leadership of organisations. Neglected in this vast literature is the role of employees in corporate governance. Yet human capital, embodied in the employees, is rapidly becoming the most important source of value for corporations, employees often have a significant formal role in corporate governance. The purpose of this study was therefore to evaluate the effect of employee involvement in corporate governance and its implications to an organization. The main objective of this study was to investigate whether employee involvement is the pillar that enhances the success of corporate governance at the Kenya Literature Bureau. Explanatory research design was applied. The target population for the study comprised of two hundred and sixteen (216) employees at the Kenya Literature Bureau. Due to the homogenous nature of the population in terms of the variables being tested, only 10% of the population was selected for the study, giving a sample size of 25 respondents. Respondents were purposively selected from the eight departments. The number of respondents from each department was proportional to the respective departmental populations as indicated in table 3.2. Primary Data was analysed by aid of the Statistical Package for Social Sciences (SPSS) tool. The findings were presented using descriptive statistics of means, frequencies and percentages. The findings indicated that employee involvement in the activities of the organization is important if the organization is to register success. The involvement should always run across the board to ensure inclusivity of all employees since they are the number one owners of the organization. This study could be used to formulate policies regarding effective corporate governance at the workplace. Chief Executive Officers may use the findings of the research to formulate effective corporate governance policies in their organisations. Recommendations have been made to have organisations include their employees in governance issues in order to remain successful and competitive in the business world.