Final answer:
The statement that employee involvement in decision making reduces their commitment to the decision is false. In fact, such involvement usually increases commitment, but it can also increase the transaction costs of the decision-making process.
Step-by-step explanation:
The claim that employee involvement in decision making can improve the number and quality of solutions generated but tends to reduce employee commitment to the decision is false. Typically, involving employees in the decision-making process increases their commitment to the outcome. By participating in the process, employees are more likely to feel personally connected to the decision and therefore more committed to its implementation. This sense of ownership and inclusion can contribute to better adherence to the decision and higher motivation to see it succeed. However, this involvement can raise transaction costs due to the time and effort required to reach a consensus among a larger group of stakeholders. It is important to find a balance between including employees to generate a wide range of ideas and managing the costs associated with the decision-making process.