The Role of Employee Empowerment in Organizational Success

A Seminar Paper

By

Rishav Thapa

Bachelor of Business Management (BBM)

2nd Semester

Leadership and Organizational Behavior

Submitted to

Faculty of Management

D.A.V College, Bhanimandal

Tribhuvan University

April 2023
 I

Acknowledgment

I would like to express my gratitude towards Tribhuvan University and D.A.V College for
organnizing seminar on Leadership and Organizational Behviour.I am also very thankful tour
subject teacher Mr. Madan Dhungana for his constant support and guidance. Seminars area great
platform for individuals to learn, grow, and exchange knowledge and ideas. The opportunity to
attend such an event is a privilege that should not be taken for granted. Having support from
individuals like Mr. Mandan Dhungana can make a big difference in the success of a seminar.
His contributions had a significant impact on my overall experience of the seminar. The fact that
he was there to help you during the seminar is a testament to his dedication to ensuring that
everyone has a positive and productive experience. The knowledge and insights gained from
seminars can be invaluable and have the potential to shape one's future. Attendees can return to
their daily lives with a newfound perspective, ready to put into practice what they have learned.
The skills and information acquired from seminars can help individuals excel in their personal
and professional lives. In conclusion, it is essential to acknowledge the efforts of Tribhuvan
University and D.A.V College for organizing such events and individuals like Mr. Madan
Dhungana for their contributions. These efforts ensure that individuals have the opportunity to
expand their knowledge, make valuable connections, and gain new perspectives. I hope that you
continue to attend seminars in the future and make the most of these opportunities to grow and
develop.
 II

Table of contents

Contents

Acknowledgment..............................................................................................................................I

Abstract...........................................................................................................................................II

Introduction......................................................................................................................................1

Background of the study..............................................................................................................1

Research Questions......................................................................................................................3

Objectives.....................................................................................................................................3

Significance of the study..............................................................................................................3

Literature Review.............................................................................................................................4

Methodology....................................................................................................................................9

Findings..........................................................................................................................................10

Conclusion.....................................................................................................................................13

References......................................................................................................................................15
 III

Abstract

Employee empowerment is an act of enabling or authorizing an individual to think, behave, and

take action, and control work and decision-making in autonomous ways. It involves giving
employees skills, resources, authority, freedom, opportunity, as well as holding them responsible
and accountable for their actions. Empowerment fosters employee’s creativity, quality of work-
life, spirit of teamwork and organizational effectiveness. Organizations do not only need to
empower employees but should also encourage empowering leadership. Empowering leadership
connotes the sharing of power and motivating employees to crave for superior performance. This
paper focuses on literature in the employee empowerment and empowering leadership contexts.
Considering the role people play in organizations, it is important to understand the impact of
employee empowerment and empowering leadership on organizational outcomes. Empowering
leadership has been examined from the structural and motivational theoretical perspective.
Several studies lend credence to the positive influence of empowering leadership on employees’
psychological empowerment. The author proposed some recommendations for managers to
implement. Research has shown that employee empowerment positively impacts various
organizational outcomes, including job satisfaction, commitment, trust, and organizational
citizenship behavior (OCB). OCB involves voluntary actions that employees undertake to help
their organizations succeed, such as going above and beyond their job requirements, providing
feedback, and helping colleagues. Empowered employees are more likely to exhibit OCB and
contribute to the organization's success. Organizations can enhance employee empowerment by
providing training, clear communication, feedback, and a supportive work environment. This can
create a sense of employee ownership and motivation, leading to better performance, innovation,
and ultimately, organizational success.

Keywords: Organizational Citizenship Behavior, Empowerment, Organizational.

 Introduction

Background of the study

The concept of empowerment has received a lot of attention in today's globalized world of the
world because of the perceived benefits of a broader form of industrial democracy. Employees,
The release was widely recognized as a significant contribution to the organization hits, with
many authors observing a direct correlation between employee levels Employee empowerment
and productivity, and job satisfaction engagement(Nwachukwu,2016). Employee empowerment
allows companies to be more agile and flexible responsive and can lead to individual and
organizational performance improvements. Similarly, it is argued that the empowerment of
workers is essential to an organization’s innovation and efficiency. Employee empowerment is
more relevant these days in a competitive environment dominated by employees and
organizations towards organic decentralized organizational structures. At that time of
globalization, it is necessary to empower employees in what is called that employees can make
quick decisions and react quickly to changes in the environment(Locke& Latham,1990).

Empowering people is a major contributor to the development of subordinates, enabling

them to invest in themselves to perform at their best, even at the risk of making mistakes (Page
and Wong, 2000). Service leadership theory emphasizes employee empowerment, service, and
training (Page and Wong, 2000; Spear, 2004). Giving others the opportunity to take action will
encourage followers to do their job better and reach their full potential (Kouzes & Posner, 2002).
Empowering others to act as described by Kouzs and Posner (2002) means developing
collaboration and empowering others, and these are attributes of transformative leadership. In
fact, one of the important responsibilities of transformational leaders is to empower their people
to achieve organizational goals and performance goals (Avolio et al., 2004). Leaders must treat
their subordinates as individuals, not as groups, and understand the development needs of their
subordinates. In order to increase the potential of employees and strengthen them, managers train
and educate their subordinates (Avolio and Basso, 2004). The use of the method of self-efficacy
development with employees can lead to their empowerment (Pelit et al. (2011).
 Employee empowerment is a key TQM practice that managers rely on to increase the
success of TQM implementation. In fact, TQM emphasizes a culture of involving all employees
in the process and contributing to the development of work efficiency (Lawler, 1992). Employee
empowerment has been linked to the dominance of an organization's quality culture (Howard and
Foster, 1999). From a management awareness perspective, therefore, employee empowerment
leads to the achievement of the best implementation of TQM. The use and dissemination of
empowerment practices as part of the organizational management process provoke and
reinforces the concept of full employee empowerment (Vouzas and Psychogios, 2007). Vouzas
and Psychogios argue that the concept of full employee empowerment makes a significant
contribution to managers' understanding and awareness of TQM. Additionally, their results
indicated that a culture of empowerment within the TQM practice paradigm improves the
performance of the TQM system.

There are two main dimensions to define empowerment: the psychological and structural
dimensions. Definitions of the psychological reinforcement dimension include intrinsic
motivation, which builds discretion and self-efficacy (Patah et al., 2009). Examples of definitions
of psychological approaches Conger and Kanungo (1988) define empowerment as a process of
increasing employees' perceptions of the effectiveness of elves. Thomas and Velthouse, (1990)
described self-reliance as a sense of accomplishment and accomplishment arising from
instinctive levels of motivation, dedication, dedication, and devotion. Brymer (1991) defines
empowerment as the process of decentralizing decision-making in an organization where
managers allow employees more freedom and autonomy. On the other hand, definitions that
focus on the structural dimension explain empowerment as a managerial activity from the
perspective of politics and organizational structure. Kanter (1993) was the first to discuss the
structural dimension of empowerment. He argued that empowerment is the state in an
organization that influences employee behavior at work. According to his definition, Kanter
presented four structural factors that affect empowerment in an organization: (i) include
empowerment activities in the job description (ii) information should be easily accessible to
employees (iii) support employee accountability for work (iv) Accessibility and availability of
resources needed to complete the work.
 Page and Wong (2000) found it important metrics for developing empowerment in others
are: getting satisfaction from it, helping others to succeed, investing a lot of time and energy in
helping others to overcome their weaknesses and improve their potential, recognizing the work
of others, and to encourage to value and appreciate others for their contributions, to take
leadership and to focus on finding better ways to serve others. Kouzes (2003) described other
ways to increase ownership, such as B. Developing collaborative relationships, listening to
different points of view, treating customers with dignity and respect, and supporting people's
decisions by giving employees the opportunity to choose their own way of working. One of the
essential components of any organization is the performance of its people. It is obvious that the
development of the organization will be the effort of all employees, not just one or two people.

Research Questions

 How does employee empowerment impact employee motivation and performance?

 Is there a significant relationship between employee empowerment and organizational
success?
 How does employee empowerment impact organizational success?

Objectives

 To identify the factors that lead to successful employee empowerment in organizations.

 To evaluate the importance of leadership support in employee empowerment.

Significance of the study

The significance of this study lies in its potential to contribute to the understanding of the role of
employee empowerment in driving organizational success. The results of this study can provide
valuable insights for organizations on the importance and benefits of empowering employees, as
well as how to effectively implement and sustain such programs. This study can also help
organizations identify key factors that influence the success of employee empowerment
initiatives and make informed decisions on enhancing employee engagement, motivation, and
performance. Moreover, the findings of this study can contribute to the broader literature on
employee empowerment and its impact on organizations, providing a valuable resource for
scholars and practitioners in the field. Overall, this study can play a crucial role in promoting the
concept of employee empowerment and its positive impact on organizational success.
 Literature Review

Recently, there have been several studies in business and management literature, particularly
empirical, aimed at increasing employees' creativity and innovation in order to improve
organizational performance. The general consensus is that there is a positive correlation between
empowering employees and organizational performance.

Spreitzer (1995), a descriptive-analytical method and discovered that the dimensions of

empowerment (meaning, competence, self-determination, and impact) have an impact on
psychological empowerment. She surveyed 393 managers from various work units and found
that empowered employees have a clearer understanding of their role in the organization, which
positively impacts their ability to innovate toward improving organizational performance.
Spreitzer's findings provide evidence that employee empowerment is a significant predictor of
innovation.

Asgarsani, Duostdar, and Rostumi (2013), the concept of employee empowerment

existed before the industrial revolution, which was characterized by craftsmen who produced
goods under the control of management. In the early 1920s, Taylor proposed breaking tasks into
smaller units for employees to undertake and deciding how best to accomplish them, resulting in
higher productivity in organizations. Before Taylor's intervention, downsizing, outsourcing jobs,
and flattening organizational levels were the dominant practices, which led to declining
workforce loyalty, commitment, satisfaction, and overall organizational performance. These
trends in the relationship between employees and organizations prompted a closer examination
of the human resource architecture. As a result, scholars and practitioners reached a consensus
that an organization's growth, development, and competitive structure largely depend on human
resource empowerment.

The proxy variables' decision-making component refers to the employee's participation in

the day-to-day operations of the organization. According to Yong and Choi (2009) and Peter et
al. (2002), decision-making is closely linked to autonomy, as autonomous decision-making is
central to team performance.
 Kariuku (2014) that firms are organized around teams, with highly formalized decision-
making at the top of organizations. Empowerment involves relinquishing the right to make
certain decisions, but some managers may feel vulnerable due to a loss of authority or control
(McCrimmon, 2010). Several factors contribute to effective empowerment, including a business
culture that supports the empowerment process, as it is unlikely to succeed when managers feel
vulnerable. Managers recognized for their problem-solving and decision-making abilities may
struggle to find a significant source of identity and job satisfaction if their workforce is over-
empowered. Cultures that support empowerment encourage managers to be catalysts, facilitators,
coaches, enablers, and developers of others, rather than solely decision-makers.

Aneela Abraize etal.2012): Effects of employee empowerment and work satisfaction. The
authors examined the relationship between empowerment and Job Satisfaction in the Service
Sector. They stressed the four dimensions of empowerment, namely autonomy, responsibility,
information, and creativity. The article emphasized what managers should be the has always
focused on these four dimensions of winning the institution concerned

Kassim et al. (2012), a study to identify the factors that impact employees' job
performance and discovered that employees with autonomy exhibit higher performance
compared to those without autonomy. In another study, Manzoor (2012) investigated the factors
that influence employee motivation and the correlation between organizational effectiveness and
employee motivation. The study revealed that when organizations recognize their employees, it
boosts employee morale and fosters a sense of loyalty toward the organization. Rawat (2011)
examined the link between employee empowerment and commitment and found that
psychological empowerment significantly impacts employee commitment.

Jung, Wang, and Wu (2009), the relationship between TQM and improvement. One of
their conclusions highlighted the important mediating role of TQM practice, including
empowerment, between competitive strategy and continuous improvement in International
Project Management. But the important discovery is this empowerment has a significant positive
impact on continuous improvement that is directly impacted by its increased competitive
advantage. The study by Jung et al. included managers working in four different countries and
multinational origins. Jung and Hong (2008) conducted research to investigate how TQM
practices influence job involvement, which, in turn, affects organizational performance.
Similarly, Travelers and Santouridis (2011) conducted a study focusing on SMEs to determine
the factors that contribute to successful TQM implementation. Their aim was to identify critical
success factors in TQM implementation in SMEs. Using the interpretive structural modeling
(ISM) technique, Singh found that employee empowerment was one of the four major factors
critical to the success of TQM implementation in SMEs. Singh identified the initial factors group
by reviewing relevant literature.

Samat, Ramayah, and Saad (2006), the correlation between employee empowerment and
service quality, as well as the connection between employee empowerment and market
orientation. The authors found that employee empowerment has a significant impact on service
quality and market orientation, as compared to other Total Quality Management (TQM) practices
that were examined in the research. The data for the study was collected from various service
organizations, including those in banking, education, private and public utilities, and consulting
services, all of which practiced TQM in their operations. These organizations were located in the
northern Malaysian states of Perak, Kedah, Penang, and Perlis.

Boon, Arumugam, Safa, and Bakar (2007), that employee empowerment is the most
significant TQM practice that has a considerable impact on job involvement. Their analysis
results indicate that empowerment is the most vital practice that elevates the level of job
involvement, leading to enhanced performance. The authors investigated empowerment not only
as a TQM practice but also as a human resource management (HRM) practice. In other words,
their study examined empowerment from three perspectives: (i) as a TQM practice, (ii) as an
HRM practice, and (iii) as a practice that relates to the relationship between HRM and TQM
practices. Considering the crucial role of HRM and TQM systems in the entire management
system, it can be inferred that empowerment is a crucial practice that significantly influences
overall organizational performance.

Kaur (2013) the influence of employee empowerment on organizational effectiveness and

discovered that certain socio-structural characteristics, such as self-esteem, reward system, and
organizational climate, play a positive role in fostering employee empowerment within
organizations.
Study Source of Data Analysis Technique Findings

Kassim et 225 respondents from Correlation and Employee with

al(2012) banking employee regression autonomy
analysis generates high
performance than
those without
autonomy
Jung, Wang, & 268 Managers of Structural Empowered
Wu (2009) International projects equation employee has
working in the US, modeling significant impact on
Mexico, Korea, and continuous
China. improvement in
international
project management
Samat, et al. (2006) service Correlation Employee
organization in empowerment has
Malaysia significant effect on
service
quality and market
orientation
Boon et al. 377 employees Regression Employee
(2007) working in empowerment is the
semiconductor most crucial TQM
contract practices that
manufacturing positively linked and
organization in effects job
Malaysia Involvement.
Kaur(2013) Structured Weighted Socio structural
 Questionnaire from average, characteristics
employees of the Correlation constitute a positive
nonexecutive public, coefficient factor in
private and foreign analysis and influencing
banks in some north Independent t-test. employee
Indian states. empowerment in
organization

The literature states that the role of empowerment is multifaceted. Trivellas and
Santouridis found that empowerment has a direct and positive impact on job satisfaction, which
indirectly affects innovation performance. At the same time, empowerment has a direct positive
effect on innovation performance without the need for job satisfaction to mediate. Empowerment
also has a positive impact on other TQM practices, as evidenced by its positive influence on
continuous improvement (Jung et al., 2009) and employee involvement (Boon et al., 2007).

Based on the provided information, these studies provide evidence for the positive effects of
employee empowerment on various outcomes such as performance, continuous improvement,
service quality, market orientation, and job involvement.