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EMPLOYEE EMPOWERMENT

byADEEL RAHMAN 10 MBA-46 & TAUFEEQUE AHMAD 10MBA-48

OVERVIEW
* definition * BENEFITS * FLIPSIDE

*EMPLOYEE EMPOWERMENT AT TOYOTA AND TATA *CONCLUSION

It could be defined as controlled transfer of authority to make decisions and take actions. The 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 evaluating.

Benefits of Empowerment

Employees view themselves as Owners of the business Improved productivity Creativity & Innovation Customer-focus Faster decision-making Organizational learning Making full use of Human resourcesEngaging the mind of every employee

Flip side of Empowerment


Egotism/arrogance: -Problems in delegating. -employee avoid reporting about their work and feedback can be taken negatively Security: - threat of leaking of organization information.

Risk: -equal chance of success and failure. -workers often lack the expertise to execute an enterprise.

Industrial democracy: -misuse of power by labor unions and workers.

TOYOTA

Toyota Motor Company empowers its employees to identify and help remedy problems occurring during product assembly. 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, as opposed to merely fixing the defect and passing it on to distributors for resale.

At Toyota solutions of day to day problems are generated from the front lines, this further enhances the potential for productivity improvements by reducing the attitude that solutions are "passed down from above."

A number of different human resource management programs are available that grant employee empowerment to some extent. A number of these are Informal participative decision-making programs Job enrichment Continuous improvement Self-managed work teams.

Informal Participative Decision-making Programs


At Toyota informal participative decisionmaking 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.

Job Enrichment

Job enrichment aims to redesign jobs to be more intrinsically rewarding. Certain job characteristics help managers to build enrichment into jobs. These characteristics include: Skill variety Task identity Task significance Autonomy Feedback

Continuous Improvement
- Often referred to as Total Quality Management, 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.

Self-Managed Work Teams

Self-managed work teams are assigned for carrying out tasks having characteristics which includes:

Technical skills Interpersonal skills Administrative skills

TATA
what exercise is to the body, employment is to mind and moral -Henry David Thoreau

Incubating innovations during

- during employees workshops, TATAs


employees are encouraged to generate ideas and suggestion.

workshops

- a remarkable empowerment scheme that has


seen women become operators and drivers of heavy duty machinery and vehicles.

Tejaswini project

Maitree

a friendship and support network - add values to an employees professional life like courses in advanced English, etiquette and effective communication.

-designed to prepare young managers for senior positions in Tata companies. a measure of the importance the Tata group gives to its biggest asset- its people.

Tata management training centre

Voluntary activities

-at Tata chemicals, employees participate in community development initiative with their own project. -employees at Tata feels that it has boosted their confidence levels and improved their ability to handle responsibility

Conclusion
Employee empowerment is transfer of authority in a controlled manner Its benefits outweighs its flipsides It has been successfully implemented at * Tata and Toyota

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