EMPOWERMENT LEADS TO PRODUCTIVITY INCREASE

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"An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success." (Covey, 1998)-

What is Empowerment in a business environment?

Empowering can be described as giving authority or permission to make specific decisions. In a business environment, this means giving power and sharing information with the employees so they can take initiative and use the information to make decisions and take responsibility for the belief of the company (Ransom, 2006).

Most companies confuse "Delegation" and "Empowerment" as similar terms (Tremblay, 2007). For example, if a manager at an apparel firm permits subordinates to buy a specific material from a specific supplier for the garments, that is Delegation. However, if the manager gives freedom to the subordinate to pick the appropriate materials and to pick a supplier for the garments, that is "Empowerment". 




Figure 1 - Principles of Employee Empowerment

Source - Elizabeth George, 2018

Why use this concept for your business?

A company should be able to rely on its employees to make the right decisions at the appropriate times. If you are an apparel manufacturer with a large workforce, there is a high chance you do not have time to look into every decision made within the business. However, an employer cannot expect an employee to make an accurate decision without providing all the necessary information. Therefore, this process involves the trust between the two parties (Stock, et al., 2016). 

How does empowerment lead to an increase in productivity?

When an employee knows that the company trusts the employee, the employee will automatically get a sense of ownership and responsibility at the workplace (Hejase, 2020). Usually, an employee likes to work at a place that they feel important and needed. Therefore, employee satisfaction and loyalty to the firm will also increase. Since they are given responsibility, they will unleash their creativity and try to do a difference in the workplace. This will increase the quality of the output and as a result, the overall productivity of the organization will increase (Amit , et al ,. 1998).

Conclusion

Apart from profits and stability, organizations also need a source of strength and loyalty. If the company has to go through major changes or hurdles, it should be able to trust the employees and manage the situation. If the company does not empower the employees, they will not have any sense of belonging or loyalty towards the business. Therefore, providing the employees with the right type of empowerment will positively impact a business since it will increase productivity.

References

Amit, R. & Esther, G. O., 1998. Does empowerment lead to higher quality and profitability?. Journal of Economic Behavior & Organization, Volume 36, pp. 411-431.

Covey, S. R., 1998. Principles Centered Leadership. s.l.: Franklyn Covey Co.

Elizabeth George, K. A. Z., 2018. An Overview of Employee Empowerment. pp. 21-46.

Hejase, H., 2020. THE ROLE OF EMPOWERMENT TO FOMENT BETTER PRODUCTIVITY. s.l.:s.n.

Ransom, J., 2006. Empowerment leads to competitive success. National Productivity Review, Volume 13, pp. 321-325.

Stock, R., Groẞ, M. & Xin, K., 2016. Say Yes to the Mess! How Top Executive Empowerment Leads to Innovativeness. Academy of Management Proceedings.

Tremblay, P., 2007. Delegate with empowerment. International journal of orthodontics (Milwaukee, Wis.), Volume 18.



Comments

  1. Sachini MahaulpathaDecember 18, 2021 at 8:51 PM

    If an employee feels empowered, it helps increase the level of their motivation as well. This will then lead for them to proactively engage in the decision-making process as well as completion of additional tasks, that help increase the organisational performance through individual performance. You have selected a very interesting topic. A very insightful article.

    ReplyDelete
  2. ARSHAD MBADecember 18, 2021 at 11:29 PM

    A key principle of employee empowerment is providing employees the means for making decisions and supporting those decisions are correct.

    ReplyDelete
  3. Dilrukshi indurugollaDecember 19, 2021 at 11:58 AM

    Employee empowerment refers to the manner in which companies provide their employees with anything and everything they need to succeed. „It is a relational construct based on
    superior-subordinate authority sharing and a motivational construct that satisfies an individual‟s desire for self-determination and self-efficacy. (Elmes et.al., 2005)

    ReplyDelete
  4. Manoj ThudawahewaDecember 19, 2021 at 12:31 PM

    Article illustrated that the value of employee empowerment and it can be also explained as the ways in which organizations provide their employees with a certain degree of autonomy and control in their day-to-day activities. Employee empowerment can instill greater trust in leadership, encourage employee motivation, lead to greater creativity, and improve employee retention all of which ultimately results to achieve organizational objectives.

    ReplyDelete
  5. pradheep mbaDecember 19, 2021 at 5:32 PM

    Empowerment should be given to the correct people who can handle it and make a positive change. In many cases what we notice is people become arrogant when given authority and which leads to the down fall of the organisation. Good explanation

    ReplyDelete
  6. Sandya December 19, 2021 at 6:30 PM

    Agree with you. It has connection between this too concept and you have explained it very well in your article

    ReplyDelete
  7. Tharaka Pathirana December 19, 2021 at 11:41 PM

    Empowerment in a business environment means that corporate management delegates the power to perform a task to a party.
    The task is enhanced by specialized knowledge and lack of control is a disadvantage.

    ReplyDelete

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