The Cultural

VOLUME 2 NUMBER 1 1994

The Cultural Implications of Empowerment Sarah Cook

Empowerment – The Pitfalls

how it will help the company achieve its aims;

Recent trends in many organizations to downsize, de-layer and flatten their structures in response to market forces and in an attempt to increase efficiency and customer satisfaction, have brought with them the need to empower employees lower down the organization to do jobs previously done by their superiors. For many companies, the concept of empowerment is seen as the key to unleashing employee potential and to increasing efficiency and effectiveness. Yet, without thorough preparation, coaching, training and support, the empowerment process can be unfulfilling both for the organization and for its employees. Typical problems which organizations encounter in empowering employees include: ●

●

lack of real commitment by senior management to the process. Senior managers may endorse empowerment but do nothing through their actions to set a positive example to their subordinates; lack of real communication about the benefits of empowerment, why the organization is adopting this approach and

●

failure to explain and train managers on the role they have to play and how they can facilitate and enhance the empowerment process;

●

managers who view empowerment as a sophisticated form of delegation: getting someone else to do the job for them rather than giving their subordinates responsibility for the job;

●

ambiguity of roles and responsibilities among all levels of employees;

●

lack of training for members of staff who take on new responsibilities;

●

lack of a team environment and support network for employees where problems and issues are discussed and shared openly;

●

ill-will between those groups of workers who are empowered and those who are not;

●

disillusionment that nothing really changes as a result of empowering the workforce.

These problems and many like them, which organizations encounter when they adopt the concept of empowerment, are typical of companies who do not recognize the cultural

Empowerment in Organizations, Vol. 2 No. 1, 1994, pp. 9-13 MCB University Press, 0968-4891

9

EMPOWERMENT IN ORGANIZATIONS: AN INTERNATIONAL JOURNAL

implications of devolving responsibility to employees.

Traditional style of management

Senior managers

The Cultural Implications of Empowerment

Empowered style of management

Self-managing teams of workers and facilitators

Middle managers

Every organization has its own culture – “the way we do things around here”. Some aspects of culture are visible to the outsider – the way employees dress and talk, the look of the environment, the way people work. Other aspects are more intangible – the subjective features such as how senior managers treat their people, how welcoming the organization is to outsiders, the motives and values that are common to the organization. Empowerment can threaten many of the traditionally held views of employees within an organization and challenge the way things are done. One northern-based food manufacturer, for example, began the process of empowerment by moving away from the traditional multi-layered and hierarchical style of management. It encouraged managers to form self-managing teams, reporting structures were abolished and individuals were given responsibility for controlling their own work area (see Figure 1). This proved a painful experience for many managers and members of staff who were used to a working environment with clear boss-subordinate reporting structures and where the managing director had been very much in control. Little direction was given to employees during the first stages of empowerment, and communication in the company was poor. The initial reaction of employees, in this example, demonstrates that although empowerment gives employees freedom to act, the empowerment process does not bring long-lasting effects unless they are trained and supported.

Workers

Figure 1. Traditional Management versus Empowered Management

Creating a Supportive Environment Many organizations in the financial sector were managed up until the end to late 1980s in a controlled, inward-looking and centralized fashion. This reflected the market conditions of comparatively steady growth and a stable and unchallenged environment. In the mid 1980s an increase in competition, deregulation and changes in technology meant that many financial institutions faced an increasing number of threats and opportunities. The inflexible and traditional style of management and paternalistic approach to employment became inappropriate in a climate of increasing challenges (See Table I).

Managed workforce

Empowered workforce

Control

v

Freedom to act

Hierarchy

v

Democracy

Paternalistic

v

Entrepreneurial

Rigidity

v

Flexibility

Inward focussed

v

Customer focussed

Table I. Control versus Empowerment in the Workforce

10

VOLUME 2 NUMBER 1 1994

In line with many other businesses facing a tough trading environment, financial institutions such as the Prudential Corporation took the decision to change their organizational structure in order to meet the needs of their customers better. Over a gradual period of time, Prudential changed its structure to one of operating divisions, focused on specific business areas. Each division was given the freedom to respond quickly to their particular marketplace. This involved a certain amount of downsizing which was an understandably difficult task, given that the prevailing culture was one of “jobs for life”. Prudential has invested heavily in training and development to equip its employees with the skills required in the new workplace environment. Changes in the structure of the sales force, for example, to focus the role of the sales person, were supported by an extensive retraining program. Empowerment is at its most effective when it is linked to achieving the organization’s goals. Senior management need to agree a mission or vision for the organization which focuses on the customer and recognizes that it needs the resources and creativity of its employees to meet its aims. The belief in the power of employees to add value to the performance of an organization is a prerequisite step in breaking the traditional culture of hierarchy and control within a company.

Here is one financial institution’s mission statement: Our goal is to be the world’s best investment bank to create exceptional returns for our clients, our people and our shareholders. Our people are the source of our competitive advantage. We will distinguish ourselves by creating an environment that promotes teamwork and innovation, by developing and utilising our employees’ abilities to the fullest and by treating each other with dignity and respect.

The statement of purpose of an organization must be communicated effectively to employees. Senior managers have an important role to play in explaining the mission of their company and in facilitating the performance required of employees to achieve its aims.

Organizational Values An organization’s mission must also be underpinned by its values. Giving employees room to operate and trusting them to make decisions may challenge many traditionally held views within an organization. Empowerment will only work when it is well thought-out and strongly linked to the organization’s values. Organizations can assist employees to understand the core values through communications and training programs as well as integrating the core beliefs into all organizational actions. One UK subsidiary of a US-based software manufacturer, for example, recently held a series of one day workshops for all its employees where the values of the company and their implications on how people conducted themselves at work were explained. The reaction of employees was very positive as the workshops created an opportunity for people to clarify what the organization stood for. Values or beliefs

Create a vision

Agree communication values

Devolve responsibility

Create teams

Train

Improve processes

Monitor and review

Figure 2. The Steps in the Empowerment Process

11

EMPOWERMENT IN ORGANIZATIONS: AN INTERNATIONAL JOURNAL

endorsed by many organizations who adopt the empowerment route include the promotion of customer service, two-way communication, teamwork and integrity.

Dupont and the Stock Exchange have devoted much time and effort to the promotion of teamwork within their organizations as a means of enabling empowerment to take place. These organizations have found that the benefits of adopting a team approach include the creation of a greater commitment to company aims and values, increased efficiency and effectiveness, as well as improvements in communication. Rank Xerox, for example, has created teams of six to ten staff who have responsibility and accountability for operational tasks. They are self managing and have control over their working conditions, group appraisals and incentives. The teamwork approach also has benefits in terms of process improvements. Braintree District Council, nominated UK’s top council for quality, has formed over 100 teams from its 1,100 employees. The teams meet on a monthly basis to identify areas in which they can eliminate error and waste and to pinpoint improvements which can be made to service quality. The teams are empowered to act on their suggestions. In addition to cost and quality benefits, the team structure has helped improve cross-divisional communication.

The Role of the Manager A fundamental change in the culture of the organization as a result of empowerment is the role the manager needs to adopt to facilitate the process (see Table II). Restructuring at Nationwide Building Society, for example, left a group of regional managers with responsibility for an increased number of branches. The old school managers adopted a “hands-on” approach to the time they spent with their direct reports at branch level. The newer empowered managers took a more facilitative approach to the problem and encouraged a different relationship with their branch managers so that they in turn felt empowered to act. The coaching role of the manager in an empowered organization, however, can be a difficult one to adopt unless managers in turn are given training and support.

Teamwork Teamwork is an important element in assisting employees to take on new responsibilities as it creates a supportive and open environment. Like the Prudential Corporation, companies such as Rank Xerox,

Pre-empowerment

Post empowerment

Police

Coach

Chairperson

Facilitator

Team leader

Team player

Controller

Enabler

Training Support Experience shows that employees need guidance and training to help them take on new levels of responsibility. One financial institution, for example, wished to engender a greater sense of responsibility in its support staff. A series of training events was devised, which encompassed topics such as:

Table II. The Role of the Manager

12

●

awareness of the history and structure of the company;

●

product knowledge;

●

customer awareness;

●

teamwork;

VOLUME 2 NUMBER 1 1994

assertive communication skills; ● time management; ● telephone skills; ● problem solving techniques. Over the course of a year, support staff were thus able to develop their knowledge, skills and attitudes in a learning environment which encouraged them to identify areas for improvement and to take action to address these. This was a far cry from the “it’s not my problem” mentality which had prevailed in the company before this time.

affecting their work place – not once but on a continuous basis. A further initial implication of creating an empowered workforce, therefore, is the necessity it brings with it to allow employees constantly to review and improve the very things which operate within an organization.

●

Conclusions The author’s experience proves that the cultural implications of empowerment are profound and have a much greater impact than many organizations envisage at the onset of the process. Empowerment has a fundamental effect on the way an organization operates, and on its skill base, attitudes and beliefs. To be successful, the empowerment process must be supportive of individual learning and self-development, of risk and failure. Above all, it must be seen as a longterm process and one which adds value to the performance of the organization and ultimately its customers.

Improving Processes Many organizations have taken the opportunity of reassessing their systems and procedures to make them more customer friendly. Direct Line Insurance is an example of a company which has created a competitive niche through a fundamental rethink of the way the UK insurance market operates. Direct Line offers a cost-effective service to the public by not dealing with brokers – the traditional middle-men in the insurance market – but rather dealing directly with the public. In doing so, their staff need to be equipped and empowered to offer excellent standards of customer service. Empowerment, therefore, offers organizations an opportunity to streamline their operations to make them more efficient and effective. This in turn can mean a major departure from the traditional structure of the organization.

Sarah Cook is author of Training for Empowerment, published by Connaught Training. She is a Director of the Customer Care specialist, The Stairway Consultancy, located at Richmond Bridge House, 417-421 Richmond Road, Twickenham, Middlesex TW1 2EX. Tel: 081 744 9936; Fax: 081 744 0469.

Continuous Improvement The empowerment process gives responsibilities to people to make decisions

13