Is Empowerment a Valuable Tool for Increasing Efficiency and Effectiveness in Today's Organisations - Essay Example

Whether Employee Empowerment is a Valuable Tool for Increasing their Efficiency and Effectiveness in Today’s Organisations By ’s ID Number Module Title and Number Name of Professor/ Tutor Date of Submission Whether Employee Empowerment is a Valuable Tool for Increasing their Efficiency and Effectiveness in Today’s Organisations Introduction The human resource strategy of empowerment is the process of increasing employees’ responsibilities while holding them accountable for outcomes. Employee empowerment increases their involvement in organisational decision-making processes, and encourages them to autonomously take the initiative in implementing organisational functions. Thus empowerment promotes greater employee engagement and motivation. The purpose of empowerment is to get employees to take responsibility for producing results rather than merely “following rules and regulations without producing tangible results” (Berman, Bowman, West, et al 2005, p.316). It includes various factors such as re-engineering and re-designing existing delivery processes to make them less error prone, more efficient, effective, and timely. Re-organization of the company’s operations to eliminate wastage of resources and personnel; and replacement of earlier methods of working with information technology are also reforms that empower the workforce. Replacement of old tasks with high technology equipment or new approaches would require staff training for new responsibilities. Any anxiety on the part of workers should be addressed by human resources personnel to help employees increase their skill sets, and when any jobs become obsolete the employees should be helped to find comparable jobs within the organization (Berman et al 2005). Thesis Statement: The purpose of this paper is to determine whether employee empowerment is a valuable tool for increasing their efficiency and effectiveness, towards achieving improved outcomes in organisational performance and progress. Employee Empowerment is A Valuable Human Resource Tool Employee empowerment has become an increasingly popular concept in organisations because of growing global competition and rapid technological change. These require intensive organisational changes in employee management, for increasing organisational competitive advantage in the expanding market. Employee empowerment is a significant change initiative, because it is critical to organisational innovation and effectiveness. The key element in empowerment is that it increases the level of motivation of an individual employee at the lowest possible organisational level, when he is delegated with authority to make decisions (Elloy 2012). There are two distinct definitions of empowerment. As a relational construct, empowerment refers to one’s power and control over other employees, and to the transference of such power from management to an employee with less decision-making authority. The second definition is of psychological empowerment, a cognitive construct and a broader conceptualization based on cognitions required for employees to consider themselves empowered (Elloy 2012). Research conducted by Seibert, Silver and Randolph (2004) was a cross-level mediation analysis using hierarchical linear modeling. The study confirmed the significance of psychological empowerment, because it “mediated the relationships between empowerment climate and individual performance and job satisfaction” (Seibert et al 2004, p.332). Empowerment consists of “intrinsic task motivation and manifest through four cognitions: sense of meaning, competence, self-determination, and impact” (Elloy 2012, p.627). Sense of meaning refers to an alignment between personal values, beliefs and behaviours with those required by one’s work role. Competence consists of self-confidence regarding one’s skills for performing one’s work related duties optimally. Self-determination indicates experiencing control over one’s work and performing it autonomously. Impact refers to regarding one’s work as important for organisational outcomes. For achieving employee empowerment, all the four empowerment cognitions are required (Elloy, 2012). These four dimensions of empowerment have been validated by researchers in service organisations, for example by Liden, Wayne, and Sparrowe (2000), and in supply companies (Arnold, Arad, Rhoades et al, 2000). Human resource management (HRM) considers employees to be valued assets, with the potential to ensure organisational competitive advantage based on their commitment, adaptability and high quality skills. At the same time, however, human resource personnel have to ensure that managers and employees are trained in empowerment processes. These render the members accountable for “consequences” and “outcomes” of their work, rather than only conforming with the dictates of hierarchical command implementation systems, and limited to following orders from those in higher positions, state Berman et al (2005). A research study conducted by Elloy (2012) investigated the relationship between selected job variables and empowerment. The survey employing established scales was administered to 103 employees in a chemical plant in the south-east of the United States. The evidence indicates a “positive relationship between empowerment and ability utilization, job influence and organisational commitment” (Elloy 2012, p.627). These findings are supported by the study conducted by Sahoo, Behera and Tripathy (2010). Employee empowerment measures centred on organisational democracy and participative management confirms a positive connection between “employee participation and job satisfaction, motivation and performance, individual commitment and organisational achievement” (Sahoo et al, 2010). Employee commitment is critical for achieving optimal individual and organisational performance, and best outcomes in products, services and customer satisfaction. Employees’ compliance is necessary regarding proposed action, its consistence with the department’s mission, whether the plan is ethical and legal, is in the interest of all concerned in the organization, and is a reform for which they are willing to be held accountable. Employees may refuse empowerment if they fear arbitrary evaluation and performance appraisal standards (Berman et al 2005). Johnson (2011) argues that the main objective in human resource management’s initiatives of empowerment is to ensure that the requirements of the employees should be in alignment with the needs of the organization, so that their motivation will result in beneficial organisational outcomes. To ensure employee compliance with organisational plans, it is necessary for the management or leaders to build and promote employee engagement. Besides ensuring that strong norms are established regarding employees’ acceptable behaviours, clear guidelines should be enforced equitably without discrimination. Yusoff and Abdullah (2008) believe that empowerment is a vital aspect of organizational change to meet the demands of the increasingly competitive global business environment. The HRM policy of empowerment is based on Frederick Herzberg’s motivation-maintenance model that separated motivational factors such as the “work itself, achievement, possibility for growth, responsibility, advancement and recognition” from maintenance or hygiene factors such as “status, job security, interpersonal relations, salary and working conditions” (Petrick and Furr 1995, p.10). According to Herzberg, only the former positively motivated behaviour, while the latter could be demotivators if absent, but could never act as motivators. Herzberg applied his model to work situations, and promoted job enrichment by increasing the areas of responsibility of workers in order to increase motivation, rather than resort to pay increases. This is in alignment with empowerment of the workforce by HRM, supporting employee involvement and work redesign programmes (Petrick and Furr 1995). The management’s setting of high goals for the employees, providing feedback at intervals on their performance, and discussing improvements in approach and actions, can also serve to empower and motivate them into achieving high performance outcomes. “Goal-setting theory is one of the best examples of human motivation and task performance” (Erez, Kleinbeck and Thierry 2001, p.50). This theory is based on the concept that performance goals are the most powerful determinants of task behaviour. Setting goals facilitates increased performance outcomes. Research evidence indicates that striving for difficult and specific performance goals leads to higher performance than striving for easy or nonspecific goals such as “doing one’s best”. Moreover, the adage “nothing succeeds like success” holds true in the domain of employee empowerment; hence employers need to ensure an organisational culture of high goal commitment, assisted by regular appraisals and guidance (Erez et al 2001). Employee empowerment based on high goal commitment, receiving feedback during task performance, and moderate complexity of task, results in an increase in performance of up to 16 percent. Further, both conscious and subconscious goals have been found to impact job performance. An example for the effects of a subconscious goal is that, a 25-year study of American Telephone and Telegraph (AT & T) managers revealed that a one-item interview question in the first year, which asked hired employees how many levels they wanted to progress in the company “was strongly related to subsequent promotion over the next 25 years” (Erez et al 2001, p.23). Thus, it is important for an organisation’s management to help employees conceptualize their professional goals, and ensure an organisational environment of high goal commitment. Rewards can form one component of empowerment, rather than only as a basis for motivation (Daft 2007). Financially rewarding employees based on company’s performance are through profit sharing and employee stock ownership plans (ESOPs). At the company Reflexite, an ESOP provides three-quarters of the equity of the company to employees including managers, professional staff members, and factory floor workers. Similarly, the manufacturers of Gore-Tex, W.L. Gore and Associates compensate employees through three methods: salary, profit sharing, and an associate stock ownership program. “Unlike traditional carrot and stick approaches these rewards focus on the performance of the group rather than individuals” (Daft 2007, p.245). Each member feels empowered, to collectively work together in the same direction, to achieve best possible performance outcomes. Further, it is beneficial for the organisation, to undertake employee empowerment through effecting changes in organizational culture and supporting worker creativity. Employee empowerment, commitment and job engagement towards better organizational performance can be increased through changes in organizational culture. Corporate culture constitutes “the basic assumptions and beliefs of members of an organization, that operate unconsciously, and define an organization’s view of itself and its environment” (Swanson 2009, p.109). Therefore, another important area of focus is fueling changes in organizational culture to ensure highly empowered, self-motivated employees with the ability to work autonomously and responsibly. Higher morale, improved efficiency, and increased productivity of greater quality resulted from changes in company culture emphasizing employee welfare, state Cameron and Quinn (2006). Further, in a strong organisational culture promoting employee empowerment, the management of crises to which the organisation may be exposed, can be done successfully. The research conducted by Areiqat and Zamil (2011) reiterates this, and the authors add that worker empowerment serves as an effective weapon to counter crisis. They emphasize the importance of a flexible and democratic organisational structure for promoting the empowerment of employees. Through appropriate empowerment interventions, both human resource professionals and organizational development practitioners should together aim to achieve higher levels of proficiency in business activities and profits. Further, it is essential to align human resource management strategies for improving employee empowerment with the organization’s goals. Lashley (2001) supports this viewpoint, and adds that focus on high performance work practices extends beyond the sphere of employee empowerment and motivation, to areas such as recruitment and selection, training, rewards, and other personnel management practices, all of which mutually overlap, and are collectively important for improving organizational performance. Conclusion This paper has investigated employee empowerment, and its significance to the organisation. The evidence from research studies indicate that employee empowerment is a highly valuable tool for achieving increased employee commitment, motivation, and effectiveness, for enhancing employee satisfaction and loyalty, for improving organisational performance and competitive advantage, for countering organisational crises successfully, and to ensure several other beneficial outcomes for the organisation and its members. The findings indicate that democratic and participative management techniques, and an organisational culture of high goal commitment, employee engagement and strong norms of acceptable employee behaviour, serve to achieve optimal outcomes in all aspects. Empowered employees undertake self-goal setting and self leadership. They strive to increase their competence and commitment, and align their goals with those of the organisation. Sahoo et al (2010) recommend that managers and human resource professionals should realign management sytems with empowering principles; clearly define goals and objectives; assign responsibilities and authority for important work activities; ensure employee involvement; and take dissenting views into consideration. Further, it is important to recognise important contributions and achievements of employees through rewards, and provide incentives and compensations for new responsibilities. Through employee empowerment, the organisation increases its confidence and capability to survive and thrive in the increasingly challenging global marketplace of today. It is concluded that employee empowerment is a critically important tool for achieving organisational efficiency and effectiveness. Future research in this field should examine in greater detail the impact of employee empowerment on individual employee’s achievement of goals, on increased productivity in work units within the organisation, and on the entire organisation’s progress and profits. Word Count: 2000 Words ------------------------------------- Bibliography Areiqat, AY & Zamil, AM 2011, ‘The Role of Empowerment in Crisis Management in Business Organisations’. Asian Journal of Business Management, 3(3), pp. 188-195. Arnold, JA, Arad, S, Rhoades, JA & Drasgow, G 2000. ‘The Empowering Leadership Questionnaire: The Construction and Validation of a New Scale for Measuring Leader Behaviours’. Journal of Organisational Behaviour, 21, pp. 249-269. Berman, EM, Bowman, JS, West, JP & Van Wart, M 2005. Human Resource Management in Public Service: Paradoxes, Processes and Problems. The United Kingdom: Sage Publications. Cameron, KS & Quinn, RE 2006. Diagnosing and Changing Organisational Culture: Based on the Competing Values Framework. The United States: John Wiley & Sons. Daft, RL 2007. The Leadership Experience. Edition 4. The United States of America: Cengage Learning. Elloy, D 2012 June, ‘Effects of Ability Utilization, Job Influence and Organization Commitment on Employee Empowerment: An Empirical Study’, International Journal of Management, 29(2), pp. 627-632. Erez, M, Kleinbeck, U & Thierry, H 2001. Work Motivation in the Context of a Globalizing Economy. London: Routledge. Johnson, M 2011 July, ‘Workforce Deviance and the Business Case for Employee Engagement’, The Journal for Quality & Participation, pp. 11-16. Liden, RC, Wayne, SJ, & Sparrowe, RT 2000. ‘An Examination of the Mediating Role of Psychological Empowerment on the Relations Between the Job, Interpersonal Relationships, and Work Outcomes’. Journal of Applied Psychology, 85, pp. 407- 416. Petrick, JA & Furr, DS 1995. Total Quality in Managing Human Resources. Florida: CRC Press. Sahoo, CK, Behera, N, & Tripathy, SK 2010, ‘Employee Empowerment and Individual Commitment: An Analysis From Integrative Review of Research’, Employment Relations Record, 10(1), pp. 40-56. Seibert, SE, Silver, SR & Randolph, WA 2004, ‘Taking Empowerment to the Next Level: A Multiple-Level Model of Empowerment, Performance, and Satisfaction’, Academy of Management Journal, 47(3), pp. 332-349 Swanson, RA 2009. Analysis for Improving Performance: Tools for Diagnosing Organisations and Documenting Workplace Expertise. California: Bennett-Koehler. Yusoff, YM & Abdullah, HS 2008. ‘HR Roles and Empowering the Line in Human Resource Activities: A Review and a Proposed Model. International Journal of Business and Society, 9(2), pp. 9-19. Read More