The Importance Of Employee Empowerment In The Global World - Research Paper Example

HUMAN RESOURCES THE IMPORTANCE OF EMPLOYEE EMPOWERMENT IN THE GLOBAL WORLD Words Count: 2400 Introduction Organisations today arefaced with tremendous forces of change, mainly stemming from competitiveness, the economy, and internationalisation. The entry of multinationals has also brought in fundamental changes in the work culture, work ethics and remunerating patterns in many countries, all of which have a clear bearing on the career growth path of individuals. Added to this are the rapid changes taking place on the technological front, flattening hierarchies and making people come together more than ever before. The new authority is emerging and organizations are member led, officer driven, customer focused; a team environment where the whole is greater than the sum of its parts; a flat management structure where employees and managers are learning rather than blame; a clear since of direction and purpose The logic behind employee's participation and empowerment is quite simple: by involving workers in those divisions that affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organisation, more productive and more satisfied with their jobs. 2. Empowerment & Employees participation Empowerment is the authority to take decisions within one's area of operation without having to get approval; from anyone else. Here the operatives are encouraged to use their initiative to do things the way they like. To this end, the employees are given not just authority but resources as well so that they not only take decisions but implement them quickly. This empowerment means giving the employees the authority to make decisions and providing them with financial resources to implement these decisions (Koch & Godden, 1997 11). Employees participation and empowerment participation means sharing the decision making power with the lower ranks of an organisation in an appropriate manner (Lashley & McGoldrick, 1994, 35). When workers participate in organisational decisions they are able to see the big picture clearly and also how their actions would impact the overall growth of the company. They can offer feedback immediately based on their experiences and improve the quality of decisions greatly. Since they are now treated with respect, they begin to view the job and the organisation as their own, and commit themselves to organisational objectives whole heartedly. 3. Creating an Empowerment Culture Organization culture depends basically on its history, technology, industry, custom and practice, leadership style organization structure etc. All organizations are unique and therefore have unique cultures. However, if one examines the attributes of the majority of industrial organizations, there are a number of traits that are seen as desirable for effective organization. First, no organization can be isolated from cultural environment, that is, organization as a social unit must operate within the framework of the larger cultural system. As such, a congruency has to be maintained with the values of total culture. Second, organization may be considered as a subculture within the framework of total broader culture. No doubt, every organization develops its own norms and cultural pattern of behavior; these elements are developed within the context of the larger cultural pattern. No part of the system should go against it if both have to succeed. From this point of view, the creating an empowerment culture is important for the functioning of a modern organization. A model for understanding organizational culture is: Which effect Determine Modifies [Source: Taken from, Ahuja K. (2005) Personnel Management. ] The culture appears as a constraining variables job performance. The following are some key attributes for empowerment that most organizations would ideally like to see for success to be achieved: A high degree of conformity to their rules and values. A high level of commitment and loyalty to the organization's ends. The suppression of the individual in favor of the organization. A clear and formal organization structure, which works in practice. The ability to use and develop skills and experience to the full and to the organization's ends. Constant search by everyone for better ways of improving Organizational performance. 3.1 Conditions Necessary for Empowerment These are four basis conditions necessary for empowerment to gain credibility and acceptance at various levels in an organization. These are discussed below: a. Participation: Workers must be encouraged to take the initiative. To this end, the bureaucratic hurdles that some inn the way must be removed. proper training should be given to employees so that they can participate more actively and make things happen b. Innovation: management must encourage employees to try out new ideas and make decisions that help in finding new and improved ways of doing things. Even when employees fail in their attempts to break the mould of custom, the words of encouragement must come the same way, so that they begin to feel that failures are stepping stones to success. One day, with such a supportive management, they are sure to ride the tidal waves of success. c. Information: Employees must have free access to information and resources that they need to nurture their talents. If they need additional training in putting the classified information to use, it should be offered readily. d. Accountability: Empowered employees should be held accountable for results. This step is not intended to identify their black spots and single them out for punishment. The intent, instead, is to see that they are giving their best efforts, working towards mutually agreed goals and behaving responsibility towards each other. When employees exhibit such behaviors, they are encouraged to go the same way at their own 'comfortable pace'. A wide variety of companies, nowadays have undertaken interventions to empower employees at various levels, such as quality circles, autonomous work group quality of work life councils, etc. 4. Empowerment as a Management Strategy The six elements of an organization (Strategy, policies, structure, systems Climate, and culture) dynamically affect one another. Each element interacts with the environment as a business strives towards its goals. The problem definition/action planning process requires that a manager look at all six elements of the organizational model to determine which action levels will exist to implement positive change. If he environment changes, the organizational elements must adapt. (Steven 124) In order to better process information, empowerment as a management strategy involves the following steps: Division of work Grouping jobs and departmentation Establishing authority relationships Division of work The first work at management strategy is to identify the various necessary activities that must be performed in order to achieve the organizational objectives. In this step the total woks to be done is divided into specific jobs. Dividing the total work into jobs is necessary because the entire work cannot be done b one individual. Division of work facilitates specialization of efforts and skills. While classifying and reclassifying the activities, it should be borne in mind that unnecessary duplication should be avoided. i. Grouping jobs and departmentation The second step in management strategy is to combine or group similar or related jobs into larger units called departments, divisions or sections. This grouping process is called departmentation. Work that is divided into jobs thus gets combined to facilitate unit of effort. The departments or work unit so created are linked together on the basis of their independence. There are various ways in which jobs may be grouped into department. One way of grouping on the basis of functions, which an organization undertakes to achieve its objective iii. Establishing empowerment The third step in the process of management strategy is the creation of empowerment among the jobholders or job positions. In effect, empowerment responsibility relations through the process of organizing link the various members of the organization, who performs the jobs. In other words, an empowerment structure is created in this step. The various managerial jobs are grouped into different levels of empowerment, which is called a hierarchy. The term hierarch implies a definite ranking order. In a hierarchy, the ranking managerial positions is done grant of different degrees of authority to different positions. Top managerial positions have more authority than middle and lower managerial positions. Empowerment flows at the top managerial positions to the managerial positions and below it in a graded manner. As it flows downwards, it decreases in its content gradually. Nixon (1994) developed a five-point empowerment strategy for an organization where people can work as individuals and also in teams towards achieving common goals. The strategy consists of: a vision; and acting only where most impact is possible; strong relationships with colleagues; networks; Internal and external support groups. 4.1 Stages of empowerment In an organization team and its manager operate in five distinct levels of autonomy and empowerment Source :< www.emeraldinsight.com/> Effective communication is necessary between manager and team for effectively operating autonomy and empowerment in the workplace. Barriers to organizational communication can be minimized if mechanisms are employed to overcome constraints caused by organizational structure; if communication channel are kept open; if a positive environment is maintained; and if various different means of communications are employed. All employees in the organization should feel that they could express their observation and constructive criticisms, both vertically and horizontally. Benefits include improved morale, increased employee participation in achievement of organizational objectives and greater loyalty of the organization. 4.2 Competency Model of employee knowledge for empowerment (Goleman, 2001a, p.28) [Source: Taken from, Ahuja K. (2005) Personnel Management. ] The greater the empowerment, the higher the internal work motivation, the higher the job satisfaction, the lower the job stress, the greater the job involvement, the more involvement beyond the defined job of the individual, and the greater the organizational commitment. 5. Critiques of employee empowerment Koch and Godden (1997) states that employee empowerment is unworkable in large organizations. It is their contention that empowerment is incompatible with strong leadership and is an inefficient way to control an organization. Foster-Fishman (1995) found that employee empowerment efforts are doomed to failure unless the culture of an organization is appropriate. Every organization exists in an environment where it interacts with, and is influenced by, the general public, specific groups (whether they be customers, clients, suppliers, pressure groups, etc) and/or various government bodies. The organization is also affected by the economic, political, legal, social, technological and international variables of the times. All managers, whether they work in the public or private sector, operate in the same external environment. They face common pressures that the environment exerts on them. However, the nature of their work and the type of organization they work for will determine how these common environmental factors are perceived - whether they are seen as positive or negative, threats or opportunities. (Yvonne 15) As well as being aware of the influence of the external environment, managers should also be conscious of the internal environment of their organization foe establishment of empowerment. Factors to consider include: the culture/climate of the organization; the pressures being generated by change (whether the introduction of new technology or a recent takeover or merger); union or professional association activities; changing workloads; staffing issues; the nature of reporting and communication channels; level of morale; the profitability and/or effectiveness of the organization. Foster-Fishman (1995) recommended that employee empowerment is not for every organization. It should be undertaken only when it fits an internal or external need and when the people and the systems are willing to make changes. This willingness can be determined by looking at the issues of control and power, trust and inclusion, and risk-taking currently exemplified in the organization Parker and Slaughter (1995) equate employee empowerment to a management-by-stress approach that pushes people and systems to the breaking point by increasingly forcing workers to do more with less. Managers should keep informed about important factors and developments in both their external and internal environments. They can do this by constantly 'scanning' their environment, which is, by establishing and maintaining a network of contacts, maintaining good communication channels, keeping up-to-date in their field and monitoring important issues and activities (Yvonne 16). 6. Conclusion Managers can form strategies to develop empowerment in their organization and to install a high performance team as part of organisation's Total Quality Management model: i. Group Contact Any effort to change is likely to succeed if the group accepts that change. For this purpose, the group itself should be the point of contact. The group contact offers some specific advantages: (a) Through groups, one can communicate with more people per unit of time. (b) In-group there may be some person who may support the idea for change even if others resist it if the change agent belongs to the same group. (c) Group can get at the basic problem very rapidly as compared to the single individual. The same is true for problem solving (Yvonne, 1999, p.82). (ii) Participation Participation helps to give people involved in the organizational change a feeling of importance. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. (iii) Group Dynamics Training for Change Group dynamics also helps providing various training programmes for accepting and implementing change. It trains group members to recognize which processes are suitable to the task, what the results are, and how members contribute. Such training techniques provide understanding of behavior, thereby the people can build up the climate based on mutual trust and understanding so essential for bringing organizational changes successfully (Yvonne, 1999, p.94). Final words: In words of Steven (1999), workers empowerment in Hotel Industry may be viewed as, 1. An instrument for increasing the efficiency of enterprises and establishing harmonious industrial relations 2. A device for developing social education for promoting solidarity among workers and for taping human talent 3. A means for achieving industrial peace and harmony which leads to higher productivity and increased production 4. A humanitarian act, elevating the status of a worker in the society An ideological way of developing self management and promoting industrial democracy References From Books: Ahuja K. (2005) Human Resource Management. Kalyani Publishers. Calcutta. Pp 880-883 Belbin, R. (1981). Management teams: Why they succeed or fail. London: Heineman.p- 132-134 Business Today: Gall up survey, 2006. Foster-Fishman, P.G., Keys, C.B. (1995), "The inserted pyramid: how a well meaning attempt to initiate employee empowerment ran afoul of the culture of a public bureaucracy", Academy of Management Journal Best Papers Proceedings 1995, pp.364-72 Koch, R., Godden, I. (1997), "Why empowerment is unworkable", Across the Board, January, pp.11-12. Lashley, C. (1996), "Research issues for employee empowerment in hospitality operations", International Journal of Hospitality Management, Vol. 15 No.3, pp.283-98. Lashley, C., McGoldrick, J. (1994), "The limits of empowerment a critical assessment of human resource strategy for hospitality operations", Empowerment in Organizations, Vol. 2 No.3, pp.25-38 Lewin K. Resolving Social Conflict, New York Harper & Row.Pp 548 Nixon, B. (1994), "Developing an empowering culture in organizations", Empowerment in Organizations, Vol. 2 No.1, pp.14-24 Parker, M., Slaughter, J. (1995), "Unions & management by stress", in Babson, S. (Eds),Lean Work: Empowerment and Exploitation in the Global Auto Industry, Wayne State University Press, Detroit, MI, pp.41-53. Schein Edgar and Warren G. Bennis (eds.), Personal and Organizational Change through Group Methods (New York: John Wiley & Sons, 1965), p. 323. Silbiger Steven (1999). A Step by Step Guide to Mastering the Skills Taught in Top Business Schools. Piatkus Books. London. Pp 103-141 Tuckman B. W., & Jensen M. (1977). Stages of small group development revisited. Group And Organizational Studies, 2, 419-427 Yvonne Mc Laughhlin. Business Management: A Practical guide for Managers, Supervisors and Administrators. Business Information Books. Pp 14-120 Williams Michael R. (1998) Mastering Leadership: Key Techniques for Managing and Leading a Winning Team. - Thorogood. London. 64. Websites: Joan Pastor, Empowerment: what it is and what it is not. (Online) < www.emeraldinsight.com/> Linda Honold, , A review of the literature on employee empowerment (Online) < www.emeraldinsight.com/> Read More