Employee empowerment is a strategy and philosophy that enables employees to make decisions

about their jobs. It is becoming increasingly clear that the engine for organisational development
is not analysts, but managers and people who do the work. Without altering human knowledge,
skills, and behaviour, change in technology, processes, and structures is unlikely to yield long-
term benefits. Managing business productivity has essentially become synonymous with
managing change effectively. To manage change, companies must not only determine
what to do and how to do it, they also need to be concerned with how employees will
react to it. In this respect, the role of Human Resource Management is moving from the
traditional command and control approach to a more strategic one and studies have
highlighted employee empowerment as one of its critical success elements (Professor
M. Zairi & Dr. Yasar F. Jarrar, 2011 Employee Empowerment - A UK Survey of Trends and
Best Practices, RPECBPM/0032)

In today's rapid changing corporate world, where reliability to organizations is fading fast,
empowerment has been growing by companies to retain employees. Factors such as downsizing,
introduction of self-managed teams, higher employee skills and introduction of total quality
management (TQM) programs also contributed to the trend for managers to welcome
empowerment.
Empowerment is defined as "the freedom and the ability of employees to make decisions and
commitments." (Robbins, 2003, p265). In other words, it means giving employees the authority,
opportunity, and motivation to take initiative to solve organizational problems.
There are several reasons why managers should give up centralized control to support
empowerment. First, it serves as a strategic way to develop products and services more efficiently.
Secondly, it is because other firms in the world are also doing so. Lastly, firms hope to create a
unique organization with advanced performance capabilities. Empowerment in Poland seems to
work. Satisfaction with co-workers was higher when employees are empowered in Poland.
Another advantage of empowerment is staff flexibility. Employees from empowered organizations
are more involved in their job and have more desire in improving their knowledge and skills. As
these employees are more eagerly to share their skills with one another, the skill level of the
organization rises too, resulting jobs to be done in a more capable way. Also it increases employee
motivation, commitment and creativity.
However, empowerment does have its potential downsides. Power, expectations and trust are
probably the most important potential downsides. When organizations become more empowered,
managers often feel that their positions are being undermined as their subordinates are making
decisions that they used to make, resulting them to believe a loss of power. Also, there are
managers who are reluctant to open to their employees, which may result in the loss of trust among
the work group. In situations where staff morale is low, embarking on an employee empowerment
program could also be potentially disastrous.
Nevertheless, empowerment represents a huge step away from traditional management-employees
relations. It means the elimination of management's control on employees' work.
In traditional command and control structure, the upper management of the organization normally
has more authority than lower-level employees. Managers of these traditional organizations usually
have to tell the employees what needs to be done and the allocation of tasks. They will have to
monitor the work progress of the employees and will step in to solve any problem that arises.
Many managers have the false impression that they have to give away power to the employees if
empowerment is introduced in the organization. Consider this; in an empowered organization where
employees work in groups, they are often delegated to make decisions to solve minor problems in
their work. There is no requirement for managers to supervise, allocate tasks, or solve the problems
for the work groups. This in fact frees the managers to allow them to have power to discover new
opportunities for the organization. Even with sharing power with employees, managers will still
maintain the overall responsibility to set goals, create conditions favorable to the achievement of
goals, and monitoring the outcomes.
Empowerment takes the forms of 4 basic elements; information, knowledge, power and rewards. In
order to allow employees to act more freely to accomplish their jobs, management should ensure
that information about company's performance is distributed to employees. Management should
also provide training to employees to equip them with knowledge and skills they need to contribute
to company goals. Employees should be given justifiable power to make informed decisions without
clearing everything first with someone higher. Managers should not discipline employees for not
making a sound decision. Instead, managers should explain to the employee on what went wrong
and encourage him or her. Employees should be rewarded based on company performance. The
rewards may be in the form of profit sharing, employee stock ownership plans, or rising of salary.
Managers have to take care of almost everything in the organization. They must plan for future and
set the overall objectives of the organization, set goals and targets for every activity, set out how
each task must be done in detail, provide all resources necessary for operation, provide training for
employees, allocate tasks to employees, and monitor the progress and results of the tasks. The
managers will have to step in to solve any problem that employees confronted in the process of
achieving the tasks. Managers also have to handle the discipline problems and complaints of the
employees whenever it arises.
Managers in an empowered organization must still set goals and monitor the performance of the
employees. However, the details of how the task is to be accomplished will be left in the hands of
capable employees. Managers are no longer required to assume the role of allocating tasks to
employees, as the work groups will see to the arrangement. With a proper system in place,
employees can attain the resources they need within their authority without relying managers to
secure the resources. The employees will also sort out minor problems they faced by seeking help
directly from the relevant departments. In an empowered organization, work groups in most cases
will try to solve any discipline problem or complaint within the team. In the event that the work
group is unable to solve the problem, only then will the matter be referred to the manager.
There are a number of issues concerning empowerment. Empowerment does not mean providing
employees with a maximum amount of "free" power. Does employee empowerment work? Well, if
used properly, empowerment puts power where it is necessary to make an organization effective.
The path to empowerment could prove difficult at times, but for many organizations, it could be the
only way to achieve survival and success

Empowerment refers to a process in which a manager shares power with a subordinate. Manager
may empower subordinates by sharing resources with them, allowing them to participate in the
decision making process, and by giving them access to relevant and important information. When
such sharing of resources, decision making and information or curtailed, this increases
powerlessness. The empowerment is any process that provides greater autonomy through the
sharing of relevant information and the provision of control over factors affecting job performance.



While employee empowerment has come to be a somewhat overused term, it is critical to any
organization committed to organizational development and change. Empowering employees leads
to positive results for employees, their managers, and their organizations. Business leaders and
human resources professionals generally agree that empowered employees exhibit a higher degree
of loyalty, commitment, and productivity.
Empowered employees generate good ideas
Employees interacting with customers can provide important insight into management decisions and
product and service innovations on a regular basis--if they're empowered to share those insights.
Organizations interested in effective organizational development and change management
programs regularly seek, acknowledge, and reward employee feedback.
Empowered employees provide better products and service
Empowered employees feel a strong sense of ownership for their companies. This ownership
translates into a concern for providing better products and service. Organizational development and
change programs that consider employee empowerment improve outcomes and service by
empowering employees to take ownership of their jobs, and in the delivery of products and services
to their customers.
Empowered employees are committed and loyal
Even in a tight economy, employers do not like high employee turnover; recruitment and training
are expensive. During an organizational change, especially if stress and uncertainty are high,
incorporating employee empowerment as a foundation of organizational development activities can
help ensure employees remain committed and loyal.
Empowered employees are productive
When employees feel that they have a say in decisions that affect them and know that management
is listening to their ideas and concerns, they work harder. Implementing organizational development
and change management programs calls for incorporating ways to help employees feel empowered.
This goes a long way toward increasing productivity.
Empowered employees spread the word
Word-of-mouth information raises awareness among potential employees. Incorporating employee
empowerment in an organizational development and change program boosts employee pride in the
company. The more empowered employees are, the more satisfied they are--and the more likely
they will spread the word to others about how great the company is and why they like working
there.
Challenges of Employee Empowerment
Employee empowerment is the process of allowing employees to make their own decisions and
getting employees involved in helping to make decisions that affect the entire company. The upside
to empowerment is that you get an employee population that is involved intimately in the success of
the company. However, there are many challenges associated with employee empowerment as well.
Message Disconnect
According to the Dawn Media Group, while empowering a workforce encourages employees to think
on their own, it can create chaos by developing different messages from various employees. What
may work for one employee may not be effective for another, and rather than creating a cohesive
company message, you wind up with fragments of individual messages. This can become challenging
in the area of customer service, for example, when one representative may handle a similar situation
differently from her counterpart within the company. When two customers with the same issue get
two different resolutions, this can lead to a disconnect between the company and the customer.
Insufficient Training
When managers are taken out of the day-to-day decision-making process for empowered
employees, it becomes necessary to increase the amount of training for employees to help
strengthen each individual's skill set. A lack of training in an empowered environment can create
situations in which employees are working on intuition rather than following company policy. As a
result, customers can wind up with incompatible solutions or insufficient information in answer to a
question.
Reluctant Managers
According to employment expert Dr. Rick Johnson, writing on Evan Carmichael's marketing website,
the challenges in some empowered environments can come from the managers. Some managers
may not feel that their employees are competent enough to handle an empowered environment,
and those managers will still maintain an employee-manager business model that can interfere with
implementing the employee empowerment model. In this situation, it helps if managers work closely
with their employees and gain the confidence in their employees necessary to allow the
empowerment model to take hold.
Breakdown of Organizational Structure
As employees gain more confidence in an empowered environment, they begin to feel they can take
on more crucial decisions. Managers need to create clear guidelines for empowerment, or they risk
the possibility that the hierarchy within the organizational structure will break down, making it
difficult for them to maintain control over their employees.
Employee empowerment is when a company allows workers the leeway to make reasonable
decisions in order to satisfy customers, according to the online glossary companion to Barry Berman
and Joel R. Evans' business textbook "Retail Management." Giving workers the power and
responsibility to make determinations that typically require a manager's or supervisor's involvement
can help foster a sense that employees have a vested interest in the company.
Training
According to the American Society for Quality, companies can foster employee empowerment by
training workers to carry out new responsibilities and providing them with the information they
need to make good choices. In some cases, it can be useful to send employees to an empowerment
workshop or hire a trainer to help employees, managers and supervisors determine how to
reorganize the workflow or restructure the business to help transition employees from staff to
decision makers.
Effects
Empowering employees helps them feel more important to the business. An employee who does not
feel micromanaged may have a more positive attitude, which creates a more positive work
environment. Employee empowerment creates better customer service, because a worker can
resolve a customer's issue on the spot--helping to create a more appreciative and loyal customer. A
customer's positive experience can lead to positive word-of-mouth advertising, resulting in more
business for the company.
Process
The process of empowering employees can start with something as simple as instituting an
employee suggestion box. Suggestion boxes allow workers to share ideas and provide feedback
about company practices and policies without fear of retribution. Upper management can read and
implement the suggestions, where appropriate, and get a better sense of employees' perspective on
the business.
Impact
Employee empowerment is only successful if management is committed to the process. If none of
the employees' suggestions comes to fruition, workers may begin to feel they have no power.
Managers and supervisors must demonstrate that they trust employees to provide valuable input
they can act upon.
Time Frame
Employee empowerment is a process rather than a one-time act. A business must actively
encourage empowerment during company meetings and in memos, email blasts and internal
company newsletters. Companies can also offer financial or vacation awards for workers who make
suggestions or take actions that save money or improve customer service.
Employee empowerment has been defined in many ways but generally means the process of
allowing employees to have input and control over their work, and the ability to openly share
suggestions and ideas about their work and the organization as a whole. Empowered employees are
committed, loyal and conscientious. They are eager to share ideas and can serve as strong
ambassadors for their organizations.
Improve Productivity - Reduce Costs
John Zink of the PHCC Educational Foundation says that employees have great ideas about how to
improve productivity and reduce costs, but companies need to know how to ask for these ideas
and listen. "Sometimes it takes an employee stepping outside of their authority to show the
benefits of employee empowerment an owner," he says. Employees who feel confident that their
input will be valued, listened to and acted upon will be more likely to share those ideas, benefiting
employee and employer.
Better Customer Service
Simon Sinek, a blogger who writes "The Empowered Employee", says that empowered employees
provide exceptional service and he's experienced this first-hand. "Empowered employees have the
power to make decisions without a supervisor. They are entitled to go off script, bend the rules,
do what they see fit if they believe it is the right thing to do for the customer. More than any other
kind of employee, the empowered employee is able to create a feeling of true customer service
that ultimately yields much greater customer loyalty," he says. Companies that give employees
the freedom to make decisions on the spur of the moment, that may even sometimes fly in the
face of established rules and protocol, often find that service to internal and external customers is
improved. In addition, empowered employees take pride and ownership in their jobs when they
know that they can exercise independent judgment when necessary.
Embracing Change
Empowered employees feel free to challenge the status quo, which is critical for companies in
today's fast-changing, technology-driven environment, says Lin Grensing-Pophal, author of
"Human Resource Essentials". Employees and the companies they work for can become too
complacent, doing things the way they've always done them. Unless employees feel comfortable
questioning the status quo, those companies are likely to stagnant as competitors move swiftly
past them. Establishing an environment when employees feel free to question, challenge and offer
new ideas can help to avoid this problem and benefit employees and employers in the process,
says Grensing-Popha