Purpose

Employee Participation & Empowerment

Participation

 Sharing the decision- making power with the lower ranks of the organization in an appropriate manner.  Unique motivational power and a great psychological value  Peace and harmony between employee and employers

Implications     



Workers have ideas which can be useful Upward communication facilitates sound decision making. Workers may accept decisions much better if they participate in them Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere Workers may work harder if they share in decisions that affect them Workers participation may foster a more cooperative attitude amongst workers and management thus raising efficiency by improving team spirit and reducing the loss of efficiency arising from industrial dispute May act as a spur to managerial efficiency

Forms of Participation  Information participation

sharing of info. reg. Economic position, state of market, production and sales programme, work methods, balance sheet, expansion plans etc.

 Consultative

giving chance to workers express their views concerning work, workplace, working conditions, market standing etc. Joint council only work together management may or may not accept

 Associative

council not purely advisory. Management under moral obligation to accept and implement the unanimous decisions of the council.

Cont…

 Administrative

greater degree of sharing authority and responsibility of managerial work. Welfare, safety, reward, benefits

 Decisive

decisions are taken jointly.

Committees  Functions - consultative - promote measures for securing and preserving amity and good relations

 Structure  JMCs

office bearers

Employee Empowerment Defined…

 Employee Empowerment is Employee Involvement that matters.  It could also be defined as controlled transfer of authority to make decisions and take actions.  What is needed?  Successful implementation of empowerment requires change in corporate culture.  Does this mean Abdication?  NO. Empowerment involves actively soliciting input from those closest to the work and giving careful thought to that input.

Rationale  An aspect of Working Smart  Empowerment is the key to motivation & Productivity.  It enables a person to develop personally & professionally.

Theoretical Framework Relationship of Concepts in Rosabeth Kanter’s (1979) Structural Theory of Power in Organizations ACCESS TO JOB WORK

SYSTEMIC POWER FACTORS

RELATED EMPOWERMENT STRUCTURES

Location in formal & informal systems

Job definition Discretion (flexible) Recognition (visible) Relevance (central)

Connections inside the organization alliance with: sponsors peers subordinates cross functional groups Connections outside the organization

EFFECTIVENESS

(Psychological Empowerment)

Formal Power

Informal Power

PERSONAL IMPACT ON EMPLOYEES

achievement and successes

increased autonomy influences

opportunity structures

determines

power structures resources information support proportions structure

leads to

decreased job stress lowered burnout increased satisfaction increased commitment

results in

respect and cooperation in organization

client satisfaction

Formal Power “...results from jobs that afford flexibility, visibility and are relevant to key organizational process...”

Informal Power “...evolves from an individual’s network of alliances with sponsors, peers and subordinates both within and outside of the organization...”

Opportunity “...includes autonomy, growth, a sense of challenge and the chance to learn and grow...”

Information “...the data, technical knowledge and expertise required to function effectively in one’s position...”

Support “...feedback and guidance received from superiors, peers and subordinates...”

Resources “...the materials, money, supplies, equipment and time necessary to accomplish organizational goals...”

Psychological Empowerment “…psychological state that employees must experience for empowerment interventions to be successful…” (Spreitzer, 1995)  Four components: meaning - congruence between job requirements and beliefs competence - confidence in abilities self-determination - feelings of control over one’s work impact - sense of being able to influence important outcomes within the organization

 Associated with manager’s access to strategic information in the

organization and to information on their units’ quality and cost performance (Spreitzer, 1995).

 Associated with organizational commitment (Spreitzer, 1995; Kramer, Siebert, & Liden, 1999).

 Strongly related to structural empowerment (Laschinger, et al., 2001)

Job Satisfaction  Consistently predicted by autonomy, good communication with supervisors and peers, organizational commitment, and job stress (Blegen, 1993, Irvine & Evans, 1995)

 Meta-analysis of 67 studies in general management literature found job dissatisfaction to be a strong predictor of turnover behaviour (Griffeth, Hom & Gaertner, 2000)

 Empowerment has been shown to predict factors associated with voluntary turnover, in particular, job satisfaction (Whyte, 1995; Laschinger, Finegan, & Shamian, 2001)

Hypothesized Model to be Tested Meaning

Confidence

Autonomy

Impact

Opportunity Information Support Resources

Changes in Structural Empowerment

Changes in Psychological Empowerment

Changes In Job Satisfaction

Formal Power Informal Power

Happy to retire here

Co-workers satisfied

Satisfied with job Supportive environment

Inhibitors of Empowerment

 Resistance from Employees & Unions  Resistance from Management     

Insecurity Personal Values Ego Personality Characteristics of Managers Exclusion of Managers

 Workforce Readiness  Organizational Structure & Management Practices

Management’s Role in Empowerment & Implementing Empowerment  Management’s Role: Commitment Leadership Facilitation  Implementing Empowerment:  Development of Suggestion Systems  Considering the Employees Point of View  Putting Vehicles in Place  Brainstorming  Nominal Group Technique  Quality Circles  Suggestion Boxes  Walking & Talking   

Suggestion Systems - 1  Management’s Role: Establishing Policy Setting Up the System Promoting the Suggestion System Evaluating & Implementing suggestions Rewarding employees  Improving the system..  Improving Suggestion Processing  Improving Individual Suggestions  Problem Identification  Research  Idea Development     

Suggestion Systems - 2  Evaluating Suggestions  Though Employees make suggestions, final analysis is still to be made by manager.  Thus, Establish a formal rating system for evaluating suggestion systems  Handling Poor Suggestions  Listen Carefully  Express Appreciation  Carefully explain your position  Encourage feedback  Look for Compromise

Achieving Full Participation  Removing Hidden Barriers  Negative Behavior  Poor Writing Skills  Fear of Rejection  Inconvenience  Encouraging new Employees  Coaching Reluctant Employees  Assess  Investigate  Match  Choose  Manage

How to Recognize Empowered Employees  Taking Initiative  Identifying Opportunities  Thinking Critically  Building Consensus

Empowerment  Avoiding Traps: Defining Power as Discretion & Self- Reliance Failing to Properly Define Empowerment for Managers & Supervisors  Assuming Employees Have the skills to be Empowered  Getting Impatient Making the Transition from Traditional Approach  

 Beyond Empowerment

How to Empower  Demonstrate You Value People.  Share Leadership Vision .  Share Goals and Direction.  Trust People.  Provide Information for Decision Making.  Delegate Authority and Impact Opportunities, Not Just More Work.  Provide Frequent Feedback.

•Solve Problems: Don't Pinpoint Problem People. •Listen to Learn and Ask Questions to Provide Guidance. •Help Employees Feel Rewarded and Recognized for Empowered Behavior.

Why empowerment fails  Managers pay lip service to empowerment, but do not really believe in its power.  Managers don’t really understand what empowerment means.  Managers fail to establish boundaries for empowerment.  Managers have defined the decision making authority and boundaries with staff, but then micromanage the work of employees.

 Second guess the decisions of employees you have given the authority to make a decision.