Implications of Employee Empowerment on Organization - Literature review Example

Employee Empowerment Introduction Employee empowerment is a of great concern in the management of businesses. Business managers and academicians frequently have to deal with the subject of employee empowerment when handling business activities. Employee empowerment refers to the act of allowing workers to make decisions that affect their work (Linda 1997, p.202). This may imply delegating some decision-making powers to employees on matters affecting their jobs to ensure accomplishment of organizational goals. The concept of employee empowerment can be used to improve productivity, performance, service quality, customer and employee satisfaction, as well as increasing the efficiency of an organization. This paper consists of two parts. The first part of the paper explores the nature of employee empowerment and its effects on organizational performance. The second part of the paper will discuss the implications of employee empowerment and reasons why an organization should increase employee empowerment. 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 a mixture of four dimensions. The dimensions are derived by taking into consideration the power of empowerment in enhancing the efficacy of employees. In this regard, findings show that lacking one of the four elements might deflate the overall degree of empowerment. It is widely believed that one of the four elements, that is knowledge, power, information and rewards will destroy empowerment (Shulagna 2009, p.49). Therefore, employees provided with the four elements would be more involved in all circles of business development programs. Empowerment, therefore, is equal to the product of the four elements, information, knowledge, power, and reward. Organizations now widely recognize that bureaucratic leadership style where decision-making is left at the hand s of top-level managers hampers flexibility and timely execution of duties at lower levels. On the other hand, it has emerged that pushing decision-making down at lower levels may result in a chaotic and conflicting decisions that lack purpose (Bowen and Lawler 1995, p.78). As a result, it has become crucial for organizations to ensure that employees are engaged in the decision-making process through empowerment. This requires organizations to develop a culture where employees are given the right to participate in decision-making on issues touching their work. This helps in improving the effectiveness of an organization. As earlier stated, the term empowerment refers to enhancement of employees’ involvement in the organizational processes and decision-making. Research indicates that, in order for an organization to become successful, it must have competent and empowered personnel. The concept of employee empowerment is today applied in almost every organization. The few that have not yet embraced the concept are also trying to implement the concept. In addition, with the emergence of labor organizations, employees are also increasingly advocating for empowerment in an organization. This is due to the benefits associated with empowerment. 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 the performance of an organization. One of the main effects of employee empowerment according to research is job satisfaction. Studies have shown that employee empowerment has a direct relationship with job satisfaction. In this regard, empowerment increases the satisfaction level of an organization, which is crucial in an organization. This is because empowerment gives employees more control over their affairs in an organization (Wooddell 2009, p.16). The increased satisfaction is crucial because it results in increased productivity, reduced labor turnover, and increased efficiency among many other benefits. Empowerment in this case may include among other things allowing employees to take part in organizational decision-making, delegation of powers or management and warding leadership positions (Wooddell 2009, p.16). 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 job satisfaction. Empowerment, according to academicians has motivating effects among employees. An empowered employee has a stronger feeling of a sense of responsibility regarding productivity. In this regard, findings show that allowing employees to take charge of their own results has a motivating effect. An empowered employee understands that their skills and ideas matter to the success of the organization (Linda 1997, p.203). As a result, such employees have the tendency of taking a greater interest in developing a more efficient and profitable organization. Higher morale implies that employees reduce absents or time off thereby resulting in increased productivity. This is of substantial benefit to organizational performance. 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 tends to earn their subordinate’s respect. This is because such managers are viewed by their subordinates are responsible and caring for their welfare. As a result, such managers are awarded by their employees through hard work and increased loyalty. This creates a positive relationship in an organization thereby leading to improved productivity in the organization. The positive relationship built through empowerment casts a negative pall on bureaucratic and authoritarian leaders who despite achieve organizational objectives, does not exhibit acceptable behaviors. Henry (1996, p29) argues that senior managers should get rid of managers with unacceptable behavior in an organization since despite achieving results, their behaviors also impacts negatively on the corporate image of an organization. Buteau and Gopal (2012, p.5) note that true employee empowerment changes the organizational culture. These changes are also manifested on the work culture. In this regard, managers are supposed to adjust to the concept that some of their powers can be delegated to subordinates. The effect of employee empowerment also reveals that all employees regardless of their levels must know that brace for any change in an organization. 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 not empowered in an organization tend to feel demoralized. As a result, they do not do their jobs with keenness. Therefore, in order for an organization to become successful, managers need to ensure that their followers are adequately empowered to increase efficiency thereby resulting in reduced cost. Geroy, Wright, and Anderson (2008, p.58) note that empowering employees to take part in decision-making makes employees directly accountable for their jobs. This has the impact of increasing efficiency and productivity. This is advantageous for organizations since instead of burdening managers with all decisions some of the responsibilities are delegated to employees. 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 and any information needed to correct errors as opposed to wasting money and time training 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 of the list is abuse of power by empowered employees. In this regard, Pardo and Lloyd (2003, p.102) show that empowering employees to make decisions on their own may result in abuse of power since empowerment might make them use the power given to them for their personal gain. Consequently, 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 an organization. This is because they take advantage of their powers to do as they wish without taking regard to organizational needs and requirements. This is likely to reduce overall performance of an 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 a bureaucratic organizational structure, managers are likely to find it difficult accepting the implementation of a new culture, which empowers lower level employee to participate in organization decision-making. Such antagonisms are not good for the effective running of an organization. This is based on the fact that the conflict creates and environment of misunderstanding between managers and employees thereby affecting the productive working conditions (Buteau and Gopal 2012, p.5). In fact, Buteau and Gopal (2012, p.5) noted 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 require expertise and some leadership qualities, training might be needed to equip an employee to the new role. Despite the fact that the training is of great benefit to the employee since it helps in equipping the employee for a more challenging role, it adds extra costs burden on the organization. In addition, training needed consume considerable time that can be used for productive activities. Empowerment in the workplace is also being criticized 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) noted in some organizations that some employees with insufficient knowledge of the role assigned have led to the downfall of such organizations due to lack of experience resulting in ineffective decisions. For instance, taking an employee with expertise in sales and marketing department to lead an engineering department or finance department may result in poor decisions I these fields. In addition, the salesperson may fight it difficult leading employees at the engineering or accounting departments for lack of experience. Implications of empowerment on organization From the literature, it became apparent that empowering employees in an organization has both positive and negative effects. However, based on the competitive nature of organizations in the world today, companies need to increase employee empowerment. This is based on the benefits an organization is likely to gain through employee empowerment. As earlier stated, research has shown that employee empowerment increases job satisfaction among employees. However, the benefits of employee job satisfaction extend to organizational performance. According to Henry (1996, p30), satisfied employee tends to increase their efforts towards the realization of organizational missions and visions. This is beneficial since increased effort increases the productivity thus profits. The increased satisfaction achieved through empowerment of employees is also beneficial for an organization in the sense that it increases the commitment level of an organization in an organization. Many companies are finding it had retained their employees in this kind of competitive environment. However, Linda (1997, p.205) have shown that empowered employees tend to remain loyal to the company. This reduces labor turnover, which may be an enormous challenge to an organization. Job satisfaction makes the satisfied employees see no need of changing jobs. As earlier stated, job satisfaction increases the commitment level of an employee. This has the effect of reducing absenteeism in an organization. This is beneficial for an organization since it ensures that all employees attempt to their duties on a daily basis without issues of absenteeism. The reduction of absenteeism has the overall effect of increasing productivity thus profits (Wilkinson 1988, p.41). This explains why organizations need to increase employee empowerment. The organization also needs to increase employee empowerment since it has the motivational effects on employees. Increasing empowerment among employees will make employees develop a sense responsibility regarding 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 an organization. It is also beneficial for the organization to increase employee empowerment within the organization as a cost saving strategy. Research has shown that empowerment increases the efficiency among workers (Bowen and Lawler 1995, p.81). Empowering employees to make decisions about their own works is of immense benefits to organizations. 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 reduction in cost translates to increased profits of the organization Linda (1997, p.207). 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 an 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 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 an award, training, delegation of tasks, and recognition among others. Therefore, based on the importance of empowerment to an organization, it will be prudent for the organization to increase empowering its employees for future success. References Bowen, D. 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