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Empowerment–The Pitfalls

Recent trends in many organizations todownsize, de-layer and flatten their structuresin response to market forces and in an attemptto increase efficiency and customersatisfaction, have brought with them the needto empower employees lower down theorganization to do jobs previously done bytheir superiors. For many companies, theconcept of empowerment is seen as the key tounleashing employee potential and toincreasing efficiency and effectiveness. Yet,without thorough preparation, coaching,training and support, the empowermentprocess can be unfulfilling both for theorganization and for its employees.Typical problems which organizationsencounter in empowering employees include:

lack of real commitment by seniormanagement to the process. Seniormanagers may endorse empowerment butdo nothing through their actions to set apositive example to their subordinates;

lack of real communication about thebenefits of empowerment, why theorganization is adopting this approach andhow it will help the company achieve itsaims;

failure to explain and train managers onthe role they have to play and how theycan facilitate and enhance theempowerment process;

managers who view empowerment as asophisticated form of delegation: gettingsomeone else to do the job for them ratherthan giving their subordinatesresponsibility for the job;

ambiguity of roles and responsibilitiesamong all levels of employees;

lack of training for members of staff whotake on new responsibilities;

lack of a team environment and supportnetwork for employees where problemsand issues are discussed and sharedopenly;

ill-will between those groups of workerswho are empowered and those who arenot;

disillusionment that nothing really changesas a result of empowering the workforce.These problems and many like them, whichorganizations encounter when they adopt theconcept of empowerment, are typical of companies who do not recognize the cultural

VOLUME 2 NUMBER 11994

The Cultural Implications ofEmpowerment

Sarah Cook

Empowerment in Organizations, Vol. 2 No. 1, 1994, pp. 9-13MCBUniversity Press, 0968-4891

implications of devolving responsibility toemployees.

The Cultural Implications ofEmpowerment

Every organization has its own culture–“the way we do things around here”. Someaspects of culture are visible to the outsider–the way employees dress and talk, thelook of the environment, the way peoplework. Other aspects are more intangible–the subjective features such as howsenior managers treat their people, howwelcoming the organization is to outsiders,the motives and values that are commonto the organization. Empowerment canthreaten many of the traditionally heldviews of employees within an organizationand challenge the way things are done.One northern-based food manufacturer,for example, began the process of empowerment by moving away from thetraditional multi-layered and hierarchicalstyle of management. It encouragedmanagers to form self-managing teams,reporting structures were abolished andindividuals were given responsibility forcontrolling their own work area (see Figure1). This proved a painful experience formany managers and members of staff whowere used to a working environment withclear boss-subordinate reporting structuresand where the managing director had beenvery much in control. Little direction wasgiven to employees during the first stages of empowerment, and communication in thecompany was poor.The initial reaction of employees, in thisexample, demonstrates that althoughempowerment gives employees freedom toact, the empowerment process does not bringlong-lasting effects unless they are trainedand supported.

Creating a Supportive Environment

Many organizations in the financial sectorwere managed up until the end to late 1980sin a controlled, inward-looking andcentralized fashion. This reflected the marketconditions of comparatively steady growthand a stable and unchallenged environment.In the mid 1980s an increase incompetition, deregulation and changes intechnology meant that many financialinstitutions faced an increasing number of threats and opportunities. The inflexible andtraditional style of management andpaternalistic approach to employment becameinappropriate in a climate of increasingchallenges (See Table I).

EMPOWERMENT INORGANIZATIONS:AN INTERNATIONAL JOURNAL

SeniormanagersMiddle managersWorkersTraditionalstyle of managementEmpoweredstyle of managementSelf-managing teams of workersand facilitators

Figure 1.Traditional Management versus EmpoweredManagementTable I.Control versus Empowerment in the Workforce

Managed EmpoweredworkforceworkforceControl vFreedom to actHierarchyvDemocracyPaternalisticvEntrepreneurialRigidityvFlexibilityInward focussedvCustomer focussed

In line with many other businesses facing atough trading environment, financialinstitutions such as the PrudentialCorporation took the decision to change theirorganizational structure in order to meet theneeds of their customers better. Over agradual period of time, Prudential changed itsstructure to one of operating divisions,focused on specific business areas. Eachdivision was given the freedom to respondquickly to their particular marketplace. Thisinvolved a certain amount of downsizingwhich was an understandably difficult task,given that the prevailing culture was one of “jobs for life”.Prudential has invested heavily in trainingand development to equip its employees withthe skills required in the new workplaceenvironment. Changes in the structure of thesales force, for example, to focus the role of the sales person, were supported by anextensive retraining program.Empowerment is at its most effective whenit is linked to achieving the organization’sgoals. Senior management need to agree amission or vision for the organization whichfocuses on the customer and recognizes that itneeds the resources and creativity of itsemployees to meet its aims. The belief in thepower of employees to add value to theperformance of an organization is aprerequisite step in breaking the traditionalculture of hierarchy and control within acompany.Here is one financial institution’s missionstatement:

Our goal is to be the world’s best investmentbank to create exceptional returns for ourclients, our people and our shareholders. Ourpeople are the source of our competitiveadvantage. We will distinguish ourselves bycreating an environment that promotesteamwork and innovation, by developing andutilising our employees’ abilities to the fullestand by treating each other with dignity andrespect.

The statement of purpose of an organizationmust be communicated effectively toemployees. Senior managers have animportant role to play in explaining themission of their company and in facilitatingthe performance required of employees toachieve its aims.

Organizational Values

An organization’s mission must also beunderpinned by its values.Giving employees room to operate andtrusting them to make decisions maychallenge many traditionally held viewswithin an organization. Empowerment willonly work when it is well thought-out andstrongly linked to the organization’s values.Organizations can assist employees tounderstand the core values throughcommunications and training programs aswell as integrating the core beliefs into allorganizational actions.One UK subsidiary of a US-based softwaremanufacturer, for example, recently held aseries of one day workshops for all itsemployees where the values of the companyand their implications on how peopleconducted themselves at work wereexplained. The reaction of employees wasvery positive as the workshops created anopportunity for people to clarify what theorganization stood for. Values or beliefs

VOLUME 2 NUMBER 11994

Create a visionAgree communication valuesCreate teamsTrainDevolve responsibilityImproveprocessesMonitor and review

Figure 2.The Steps in the Empowerment Process

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Category:	Research > Business & Economics
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Upload Date:	09/29/2009
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Tags:	empowerment empowerment (fewer)

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