Empower

OB Employee Empowerment: A New Approach to Managing People BUSI 2101 Chapter 8 - pp. 335-340 Chapter 10 - pp. 438-439

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The Traditional (Theory X) Role of Management

ƒ Command & control ƒ Motivating ‘lazy’ employees with rewards and punishment ƒ Structuring work to standardize it and make it simple and predictable ƒ Making all of the important decisions ƒ Supervising behaviour to ensure performance and quality ƒ Telling workers what to do and how to do it!

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Empowerment: Flattening the Power Structure

ƒ Idea of empowerment is to give as much responsibility and authority to employees as is reasonable given the context. ƒ Unfortunately, empowerment is a poorly understood concept that is often confused by managers, who lump it together with such things as TQM and reengineering ƒ True empowerment means letting ees make decisions about their work: tasks, behaviours, goal setting and setting work priorities (i.e. job context & job content)

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Benefits of Empowerment

ƒ All employees view themselves as ‘owners’ of the business. ƒ Improved productivity ƒ Creativity and innovation ƒ Customer-focus ƒ Faster decision making ƒ Organizational learning ƒ Making full use of human resources – “engaging the mind of every

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Degrees of Empowerment ƒ Total management control – no employee discretion

ƒ Participatory management – management generally controls the work and the Degree of Empower- context, but allows employees to make ment some decisions (typically minor ones) ƒ Self-management – employees make most decisions pertaining to their work and work setting High

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Empowered People

ƒ Gretchen Spreitzer found that employees who feel empowered share the following 4 beliefs: ƒ Meaning – belief that one’s work is aligned with his/her values ƒ Competence – belief that he/she has the ability to effectively complete his/her work role ƒ Self-determination – belief that he or she has the freedom and right to decide how to approach his/her work, without being micromanaged ƒ Impact – Belief that he/she can influence org. outcomes

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Empowered People

ƒ Basically, empowered people are selfmotivated to perform their work to the best of their abilities and to go above and beyond the call of duty at work. ƒ This suggests: ƒ Conscientiousness ƒ Internal locus of control ƒ High self-esteem ƒ Self-motivation (an element of Emotional Intelligence) ƒ Theory Y is an appropriate perspective

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Chris Argyris said:

Empowerment is like the Emperor’s New Clothes: “We praise it loudly in public and ask ourselves in private why we can’t see it. There has been no transformation in the workplace, and there has been no sweeping metamorphosis.” The message is “do your own thing – the way we tell you.”

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Issues with Empowerment

ƒ Managers misunderstand it ƒ Managers only pay it “lip service” ƒ Organizations are not prepared in terms of structure, culture and rewards ƒ Managers are displeased when empowered workers make decisions that differ from their expectations ƒ Managers expect to see results without having to make a strong commitment or take risks

OB Issues with Empowerment (2) ƒ Employees need the skills and training to manage risks and decision making ƒ Many employees do not want the added responsibility and accountable and are uncomfortable “putting their necks on the line” ƒ Not all people are conscientious enough to be empowered

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Success Factors

ƒ Rewards have to encourage empowerment, not compliance with rules ƒ Sharing responsibility means sharing in the rewards – performance-based pay is crucial ƒ Empowerment requires sharing of information – books need to be opened to employees ƒ Employees need to be trained to make smart decisions

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Success Factors (2)

ƒ Management needs to be committed to giving up direct control for value-based control ƒ Management needs to be trained to be facilitators and not controllers ƒ Management must be willing to accept risk and uncertainty and to tolerate mistakes ƒ Management must seek empowerment for the right reasons – it is not a cure-all

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Success Factors (3)

ƒ Conditions that inspire empowerment: ƒ Low role ambiguity – clear boundaries, goals, measures and tasks ƒ Wide span of control – flat structure with many employees per supervisor ƒ Political support from managers to get things done – access to necessary power sources ƒ Access to full and timely information ƒ Climate that encourages and rewards participation ƒ Education and training – increases competence and feelings of ‘investment’ in employees

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On Empowerment:

“ A funny thing happens when you take the time to educate your employees, pay them well, and treat them as equals. You end up with extremely motivated and enthusiastic people.” Kip Tindell, President of The Container Store, Selected #1 in Fortune’s 100 Best Companies to Work for, 2000

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Another Quote

“Committing to employee empowerment is like dancing with a bear. Once the music starts, you'd better be ready to go where the bear wants to go." Peter Sanderson, 1993 President, Oneida Canada

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