Employee Empowerment - Essay Example

?Employee Empowerment Introduction Polymer Manufacturing Company is a leading manufacturer of polythene and plastic materials. However, the company operates based on a bureaucratic organization structure where all decision-making is left at the hands of top-level managers. This implies that lower level managers and supervisors are expected to implement decisions made by top-level managers, which increases rigidity. Employees of the company are expected to follow strictly their supervisors and managers decisions without question. According to the employees, delegating some decision-making powers to them would enable them act promptly to improve the efficiency and manufacturing processes of the company for better performance. However, due to the bureaucratic nature of the company, the managers and the supervisors deny the employees such powers. The overall effect has been that the employees of the company are demoralized resulting in high labor turnover and subsequently the poor performance of the company in terms of productivity. It is based on this situation that the employees of this organization have made an appeal that they be reasonably empowered. Current Literature about Employee Empowerment Employee empowerment is a subject of great concern to business and human resource managers. Employee empowerment refers to the strategy or philosophy that involves allowing workers to make decisions that affect their work according to Linda (1997, p.202). Bowen and Lawler (1995, p.35) on the other hand define employee empowerment as the act of enhancing employees’ involvement in organizational processes and decision-making. It basically involves delegating some decision-making powers to employees on matters affecting their jobs so as to ensure that organizational goals are achieved. Some of the ways of empowering employees include: allowing employees to take part in the decision-making process, delegating powers to them and offering them leadership positions (Wooddell 2009, p.16). Employee empowerment can be used to improve productivity, performance, service quality, customer and employee satisfaction, and the efficiency of an organization. Demirci and Erbas (2010, p.143) argue that companies need to manage and improve their employees’ performance. This is achievable through empowerment. Empowerment, according to Demirci can be formulated through by considering four main dimensions namely: knowledge, power, information, and rewards. Alternatively stated, empowerment is the product of the four elements, information, knowledge, power, and reward. The dimensions are derived by taking into consideration the power of empowerment in enhancing the efficacy of employees. Lack of any one of the four elements might lower the overall degree of empowerment according to Shulagna (2009, p.49). Organizations now widely appreciate the fact that bureaucratic leadership in which where decision-making is squarely placed on the hands of top-level managers hampers flexibility and timely execution of duties down the line. On the other hand, it has been established that placing all decision making responsibility on the hands of lower level employees is a recipe for chaos and purposeless conflict (Bowen and Lawler 1995, p.78). Taking note of these facts, it is crucial for organizations to ensure that employees are engaged in decision-making by being empowered. The organization needs to develop a culture where employees are given the right to participate in decision-making especially on issues touching on their work. This will help in improving the effectiveness of the organization. Bowen and Lawler (1995, p.80) note that employee empowerment is an extremely powerful tool that organizations in the modern business environment need to implement as a way of improving their performances. One of the main results of employee empowerment is job satisfaction according to Wooddell (2009, p.15). Studies have shown that employee empowerment has a direct relationship with job satisfaction. In this regard, empowerment increases the satisfaction level of employees, which is crucial for the organization. A high level of job satisfaction is crucial because it results in increased productivity, reduced labor turnover, and increased efficiency among many other benefits. Employee empowerment also has immense value to an organization since it assists in building careers of employees. For example, empowering employees through delegation of duties gives them the opportunity to learn. This helps them build their careers thereby improving their level of job satisfaction. An empowered employee has a stronger sense of responsibility regarding the organization’s productivity. In this regard, findings show that allowing employees to take charge of their own results has a motivating effect (Linda 1997, p.201). An empowered employee understands that their skills and ideas contribute to the success of the organization (Linda 1997, p.203). As a result, such employees have the tendency of taking greater interest in working toward ensuring that the organization becomes more efficient and profitable. Higher morale implies that employees reduce absenteeism, thereby resulting in increased productivity. Research also indicates that there are hidden effects of empowerment in the workplace (Henry 1996, p39). In this regard, it is noted that managers who seek to enhance employee empowerment tend to earn their subordinates’ respect. This is because such managers are viewed by their subordinates as being responsible and considerate of their welfare. Such managers are rewarded by the workers in the form of higher loyalty and through hard work. This creates a positive relationship between employees in the organization which positively affects the organization’s performance. The success of an organization depends largely on its cost management strategies. Linda (1997, p.203) notes that employee empowerment has a profound effect on costs. In this regard, an empowered employee tends to be highly efficient in their duties. This is because they take keen interest in what they do. This saves costs in the sense that it reduces wastages. On the other hand, employees who are not empowered tend to feel demoralized. As a result, they do not do their jobs with keenness. Geroy, Wright, and Anderson (2008, p.58) note that empowering employees to take part in decision-making makes employees directly accountable for their actions. This has the impact of increasing efficiency and productivity. This is advantageous for the organization since instead of burdening managers with all decision making, some of their responsibilities are delegated to their surbodinates. This, according to Geroy, Wright, and Anderson (2008, p.58) makes pinpointing issues affecting the organization easy. In this regard, organizations can provide additional training to employees providing them with information needed to correct errors as opposed to wasting money and time training an entire department. Despite the several positive effects of employee empowerment in the workplace, findings show that the concept is also associated with a number of negative effects. Top on the list is abuse of power by empowered employees. Pardo and Lloyd (2003, p.102) show that empowering employees to make decisions on their own may result in the abuse of power for personal gains. Such empowered employees are likely to become less efficient or responsible based on their own decisions (Pardo and Lloyd 2003, p.102). This has been evident in many organizations where empowered employees tend to be less efficient. For example, empowered employees are likely to spend more time attending to non-work related activities, which are not beneficial for the organization. This is because they take advantage of their powers to do as they wish without giving due regard to organizational needs and objectives. This is likely to reduce the overall performance of the organization. Research on various organizations has also shown that employee empowerment has the potential of causing misunderstanding between employees and managers (Buteau and Gopal 2012, p.5). For example, in an organization that is bureaucratically managed, managers are likely to find it difficult accepting the implementation of a new culture, which empowers lower level employee to participate in decision-making. Such cases of antagonism are not good for the effective running of the organization. This is based on the fact that the conflict creates an environment of misunderstanding between managers and employees thereby negatively affecting productivity (Buteau and Gopal 2012, p.5). Also, Buteau and Gopal (2012, p.5) notes that despite the fact that empowerment is likely to provide job satisfaction to employees; it is likely to deprive managers of a similar job satisfaction. Employee empowerment is also associated with additional training costs likely to burden an organization. Demirci and Erbas (2010, p.146) indicate that, in order for an employee to be assigned to a post that requires expertise and some leadership qualities, training might be needed to equip them for the new role. Despite the fact that the training is of great benefit to the employee since it helps in equipping them for a more challenging role, it adds extra costs to the organization. In addition, training consumes a considerable amount of time that can be used for productive activities. Empowerment in the workplace is criticized on the grounds that it may result in ineffective decisions that might impact negatively on the performance of an organization. For example, Herrenkohl, Judson and Heffner (1999, p.374) note that in some organizations employees with insufficient knowledge of the role assigned to them have led to the downfall of such organizations. For instance, taking an employee with expertise in sales and marketing to lead an engineering department or finance department may result in poor decisions. In addition, the salesperson may find it difficult leading employees in the two departments. Implications of empowerment on the organization It is apparent that empowering employees of Polymer Manufacturing Company may have both positive and negative implications. Considering the competitive environment in which the business operates, the company needs to empower its employees. This is the right direction for the company given the several advantages that come with employee empowerment. As earlier stated, employee empowerment increases job satisfaction among employees Furthermore, the benefits of employee job satisfaction extend to organizational performance. According to Henry (1996, p30), satisfied employees tend to increase their efforts toward the realization of organizational missions, objectives, and visions. This is beneficial since increased effort increases productivity and thus profits. The increased satisfaction achieved through empowerment of employees is also beneficial for the organization in the sense that it increases the commitment level of the employees to the organization. This reduces employee turnover which is evidently an enormous challenge to an organization. As earlier stated, job satisfaction increases the commitment level of an employee. When the employees of the company are committed to the organization, their rate of absenteeism will significantly reduce. The reduction of absenteeism has the overall effect of increasing productivity thus profits (Wilkinson 1988, p.41). This explains why the company needs to empower the employees. The organization also needs to empower the employees since it has motivational effects on employees. Increasing empowerment among employees will make the employees develop a sense of responsibility to the company’s productivity. As a result, they will work extra hard to ensure that the organizational goals are achieved. Report indicates that empowered workers understand that their ideas matters as far as productivity is concerned Linda (1997, p.205). This is exceedingly crucial for the success of the organization. It is also beneficial for the organization to increase employee empowerment as a cost saving strategy going by the fact that empowerment increases the efficiency among workers (Bowen and Lawler 1995, p.81). This is because the organization will benefit from the experience of every employee in the organization. In addition, allowing employees to make decisions regarding procedural changes in the work makes them more efficient, thereby resulting in cost reduction. The organization should also consider increasing employee empowerment since it would benefit greatly from the close manager-employee relationships created by empowerment. Bowen and Lawler (1995, p.78) indicated that managers that empower their employees tend to gain respect from their followers. In turn, the followers have the tendency of rewarding such managers through increased effort and efficiency. This is important for the organization, therefore, should be implemented. In fact, the good working relations created between managers and employees through empowerment is crucial because it is likely to build teamwork in an organization leading to increased productivity. This is unlike a bureaucratic organization where managers make all decisions regarding the company, which is communicated down the line (Bowen and Lawler 1995, p.81). Such bureaucratic organizational culture though achieve results does not create a good working relationship between managers and workers. As such, the organization should consider increasing empowering its employees as a means of building good teamwork between managers and employees. This is likely to result in increased productivity and commitment towards achievement of organizational goals. Employee empowerment should also be increased due fact that it increases the efficiency of workers, which, in turn, increases customer satisfaction (Wilkinson 1988, p.42). Certainly, the main motive of forming a company is to make a profit. However, a company cannot make a profit or build a good reputation if it cannot satisfy the needs of its customers and other stakeholders. However, findings have shown that an empowered employee tend to work hard had towards ensuring that the company’s customers are adequate met. This helps in drawing many customers towards the organization, as well as ensuring that customers maintain their loyalty towards the company. This also helps increase profits, which is the main motive of forming a company. Ways of empowering employees Several strategies exist that can be employed by the organization as a means of empowering employees in an organization. One of the strategies that can be used to empower employees is through delegation of duties precisely and concisely. Delegation of duties to employees implies that the organization recognizes the effort of employees as far as management of the organization is concerned. This is because it gives an employee the greater powers equal to those of the top-level managers. Research has indicated that many employees feel empowered when they top management delegates some work of higher cadre to them. This boosts their morale thereby resulting in increased productivity and efficiency. Secondly, employees can also be empowered through recognition of individual achievement. This should be done at both board and individual leave. In this regard, managers can effectively empower their employees by acknowledging their successes at the board meeting or by personally congratulating employees on works well done (Buteau and Gopal 2012, p.6). This helps in creating an organization that focuses on success. Research indicates that appreciating the effort of an employee act as a motivational gesture that the employee is doing is appreciated by top management. Recognition also encourages employees to put more effort thereby resulting organizational success through increased productivity and efficiency. Employees can also be empowered through rewards. Much organization gives out rewards in recognition of employees efforts (Wilkinson 1988, p.41). This may be in the form of promoting employees from a lower cadre to a higher cadre. Promoting an employee to a higher cadre shows employees that their efforts are recognized by the organization. This is motivating in the sense that it increases job satisfaction among employees. Increased satisfaction results in increased efficiency and better performance. Employees are also empowered through promotion of education (Wilkinson 1988, p.42). In this regard, an organization can empower its employees by providing a means for workers to get the desired training if need be so as to enable them acquire more knowledge on their jobs. This may include organizing a training workshop for employees. It may also involve providing training leaves with pay for employees to enable them improve their skills in their areas of the profession. This is important because training enables employees to gain additional knowledge to use in discharging their mandate. Research indicates that employees are also empowered when their feedbacks are sought for and taken into consideration in decision-making product. This entails mangers going an extra mile asking employees how best an organization can aid their empowerment. Most organizations do this by placing a suggestion box where the opinions of employees are sought as regards how they feel their affairs are managed by top-level managers (Wilkinson 1988, p.42). However, when seeking the feedbacks from its employees, managers should ensure that the feedback obtained from employees is used as a basis for decision-making. This is crucial because it shows employees that their opinions matters as far as the success and running of the organization is concerned. Conclusion Employee satisfaction and motivation are key to the success of an organization. As such, organizations must strive to ensure that employees are adequately motivated and satisfied to ensure organizational success. Employee empowerment is one of the strategies that an organization can employ to ensure that employees are motivated and satisfied at the workplace. Employees can be empowered using a number of strategies such as giving awards, training, delegation of tasks, and recognition among others. It is very crucial for organizations that wish to be competitive and in conformity with the current business environment to consider empowering employees. Employee empowerment increases employees’ commitment, efficiency, and productivity, which is vital for an organization that wishes to be competitive. For example, if it were that the employees at Polymer Company were empowered, the employees would not see the need of leaving the company. In addition, they would possibly make contributions to the manufacturing process of the company, which would have led to the success of the company. Nevertheless, employees need to be empowered only to a reasonable level. This implies that they should not be given absolute powers to make decisions in relation to the operations of the company. This is because too much empowerment is subject to abuse by malicious employees, which may prove counterproductive to the company. Based on the importance of empowerment to the organization, it will be prudent for the organization to empowering its employees more than they are currently for future success. References Bowen D. and Lawler E. 1995, Empowering service employees, Sloan Management Review,vol. 36, no. 4, pp. 73-82. Buteau E. and Gopal, R. 2012, Employee empowerment: the key to foundation staff satisfaction, viewed 24June, 2013 Demirci, K. and Erbas, A. 2010, Employee empowerment, and its effect on organizational performance, 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo. P. 142-145. Geroy G., Wright P. and Anderson J. 2008, Strategic performance empowerment model, Empowerment in Organizations, vol. 6, no.2, pp. 57-63. Henry J. 1996, Why employee empowerment is not just a fad, Leadership and Organization Development Journal, vol. 17, no. 4, pp. 29–36. Herrenkohl R., Judson G. and Heffner J. 1999, Defining and measuring employee empowerment, Journal of Applied Behavioral Science, vol. 35, pp.373-385. Linda H. 1997, A review of the literature on employee empowerment, Empowerment in organizations, vol. 5, no. 4, pp. 202-212. Pardo M. and Lloyd B. 2003, Measuring Empowerment, Leadership and Organization Development Journal, vol.3, pp. 102-103. Shulagna S. 2009, Employee Empowerment in the Banking Sector, IUP Journal of Management Research, Hyderabad: Sep. 8, 9, pp. 48-67. Wilkinson A. 1988, Empowerment: Theory and practice, Personnel Review, vol. 27, no. 1, pp. 40-56. Wooddell V. 2009, Employee Empowerment, Action Research, and Organizational Change: A Case Study. Organization Management Journal, vol., 6, pp.15-18. Read More