EMPLOYEE EMPOWERMENT

‡ A primary goal of employee empowerment is to give workers a greater voice in decisions about workrelated matters. ‡ Their decision-making authority can range from offering suggestions to exercising veto power over management decisions. ‡ Possible areas include: how jobs are to be performed, working conditions, company policies, work hours, peer review, and how supervisors are evaluated

Benefits of Empowerment ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ All ees view themselves as µOwners¶ of the business Improved productivity Creativity & Innovation Customer-focus Faster decision-making Organizational learning Making full use of Human resources³Engaging the mind of every employee´ .

ees make most decisions pertaining to their work and work setting .Degrees of Empowerment ‡ Total management control.management generally controls the work & the context.No employee discretion ‡ Participatory management.but allow ees to make some decisions(typically minor ones) ‡ Self-management.

Empowered People ‡ Gretchen Spreitzer found that ees who feel empowered share the following 4 beliefs: ‡ Meaning-belief that one¶s work is aligned with his/her values ‡ Competence-belief that he/she has the ability to effectively complete his/her work role ‡ Self-determination-belief that he/she has the freedom & right to decide how to approach his/her work. without being micromanaged ‡ Impact-belief that he/she can influence organisation outcomes .

empowerment can strengthen motivation by providing employees with the opportunity to attain intrinsic rewards from their work. .Organizational improvement through employee empowerment ‡ First. ‡ Intrinsic rewards such as job satisfaction and a sense of purposeful work can be more powerful than extrinsic rewards such as higher wages or bonuses. such as a greater sense of accomplishment and a feeling of importance.

. those on the front line can often better identify problems. Especially when decisions require task-specific knowledge.‡ The second means by which employee empowerment can increase productivity is through better decisions.

. An automobile coming off Toyota's assembly line with a paint defect is seen as an opportunity to delve into the root cause of the defect.TOYOTA ‡ Toyota Motor Company empowers some of its employees to identify and help remedy problems occurring during product assembly. as opposed to merely fixing the defect and passing it on to distributors for resale.

‡ Solutions resulting from employee involvement tend to have more employee buy-in when it comes to implementation. this further enhances the potential for productivity improvements by reducing the attitude that solutions are "passed down from above." . Because such solutions are generated from the front lines.

.‡ ‡ ‡ ‡ A number of different human resource management programs are available that grant employee empowerment to some extent. A number of these are discussed in the following sections includingInformal participative decision-making programs Job enrichment Continuous improvement Self-managed work teams.

. Employees do not enjoy blanket authority to make all work-related decisions. managers decide just how much decision-making authority employees should have in each instance.Informal Participative Decision-making Programs ‡ Informal participative decision-making programs involve managers and subordinates making joint decisions on a daily basis. The amount of authority varies depending on such situational factors as decision complexity and the importance of employee acceptance of the decision.

or better than. Employees should be empowered in situations where they can make decisions that are as good as. one key to empowerment is choosing under what conditions to empower employees.‡ While it may seem obvious. . those made by their managers.

culture & rewards. ‡ Managers are displeased when empowered workers make decisions that differ from their expectations. ‡ Managers expect to see results without having to make a strong commitment or taking risks. . ‡ Organizations are not prepared in terms of structure.Issues with Empowerment (Managers) ‡ Managers misunderstand it. ‡ Managers only pay it ³Lip Service´.

‡ Many ees don¶t want the added responsibility and accountable & are uncomfortable with ³putting their necks on the line´.Issues with Empowerment (Employees) ‡ ees need the skills and training to manage risks and decision-making. . ‡ Not all people are conscientious enough to be empowered.

Whether the task is meaningful beyond the task itself.Employee discretion over how to perform a task. ‡ Autonomy.Job Enrichment ‡ Job enrichment aims to redesign jobs to be more intrinsically rewarding.The degree to which employees perceive how their job impacts the overall production of a product or service. where increased skill requirements are associated with increased motivation.Input from peers and supervisors regarding the quality of an employee's work. These characteristics include: ‡ Skill variety. Certain job characteristics help managers to build enrichment into jobs. ‡ Task significance.The various skills needed to perform a given task. ‡ Task identity. . ‡ Feedback.

This involves assigning tasks performed by different workers to a single individual. as each worker would be responsible for the job from start to finish.‡ Combining tasks. as well as task identity. . rather than working on just one part of the production process. This change would increase skill variety. in a furniture factory. sand. and stain an entire table or chair. each person could assemble. For example.

skill variety is increased because workers have a chance to develop interpersonal skills.‡ Establish client relationships. and to have more decision-making authority(autonomy). . It also provides them with a chance to do a larger part of the job (task identity).Client relationships could be established by putting the worker in touch with customers. By establishing client relationships. For example. an auto dealership service department could allow its mechanics to discuss service problems directly with customers. rather than going through the service manager. to see how their work impacts customers (task significance).

‡ Motorola reduced the number of defects in its products by 80 percent. built on the successful experiences of numerous companies. these programs empower workers to trace product or service problems to their root causes and redesign production processes to eliminate them using various problem-solving and statistical techniques. was able to decrease the number of customer complaints it received by 38 percent after implementing continuous improvement methods. The use of continuous improvement programs have grown rapidly. . ‡ Xerox. for example.Continuous Improvement ‡ Often referred to as Total Quality Management. .

Self-Managed Work Teams Self-managed work teams are not for all organizations. characteristic needed for success include: ‡ Technical ‡ Interpersonal skills ‡ Administrative skills .

Drawbacks can include: ‡ Rivalry within and across teams. ‡ Difficulty appraising employees in the absence of a traditional management figure. training. . and resolving interpersonal disputes. ‡ A shortage of time and skills on the team to deal with conventional management concerns like hiring.

‡ Empowerment requires sharing of information.Success Factors ‡ Rewards have to encourage empowerment. ‡ ees need to be trained to make smart decisions. ‡ Sharing responsbility means sharing in the rewardsperformance based pay is crucial. . not compliance with rules.books need to be opened to ees.

‡ Management needs to be trained facilitators not controllers.Success Factors Continued« ‡ Management needs to be committed to giving up direct control for value.based control. ‡ Management must seek empowerment for the right decisions. . ‡ Management must be willing to accept risk & uncertainity & to tolerate mistakes.

Climate .Education & Training Low role ambiguity Conditions inspiring Empowerment Wide span Of control Political Support Access to information Org.

and treat them as equals.On empowerment«.´ .. You end up with extremely motivated and enthusiastic people. pay them well. ³ A funny thing happens when you take the time to educate your employees.

Thank You By: Poonam Gupta .

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