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EMPLOYEE EMPOWERMENT.
WHAT DOES IT REALLY MEAN?

INTRODUCTION

The latest buzzword or trend for the business world is empowerment. It seems as though this is the first time it has ever been a part of the working environment. Does open-door-policy, self-management, or focus groups sound familiar? Even if you have filled out a survey or voiced comments on an exit interview, you have experienced some degree of empowerment. Now we have a word that emcompasses all of these strategies of control. What does empowerment really mean and what effect does it have on employees and employers. I have compiled research on empowerment into five major categories:

What is empowerment?

How is it implemented?

What is effected?

Reasons for failure.

How to avoid failure.

Supporting research and examples.

WHAT IS EMPOWERMENT?

After researching the subject, my definition of empowerment is the control that each individual has over his/her situation. In a company, this control is usually given out by upper management. Not only can a company can give employees more control over their job, but also over their home life. Managers are starting to realize that if they have skilled employees, why not let them make reasonable decisions on subjects that they are knowledgeable about. Not only will information come from those the closest to the situation, but it may also increase morale. In addition, valuable time can be freed up for managers. Although it may sound simple, going to a more liberal way of thinking is very complicated.

Empowerment involves delegation. There are two ways to delegate, the gofer way, and the stewardship way. Either gets the employee involved, just at different levels. The gofer way is when the manager tells the employee a specific way to do the task and each step must be followed. On the other hand, stewardship delegation is telling the employee what outcome is needed and then letting the employee to make a choice on how to solve the problem. The employee may even be asked to use some of his/her own creativity. I will discuss stewardship delegation in further detail (Covey, Stephen R. 1989.)

HOW IS IT IMPLEMENTED?

If a company is going to implement any kind of empowerment program, it has to be supported by everyone in top management. If this step is not done first, there is no reason to continue. There has to be a solid foundation of positive energy for the empowerment process to succeed. If even one manager just goes along but really has doubts about it, he/she may cause the program to fail (Chief Executive, U.S.)

Company guidelines are the second most important factor. Before, employees just went to their manager for decisions that were not part of their daily routine. Now, they may be solving some of these problems. The employees need to have a clear understanding of what their boundaries are and how to go about solving the problems. Guidelines must be user friendly and easily accessible for empowerment to be successful. This is so that decisions that could be detrimental to the company are still handled by the manager figure. A good example of this is in Make Employee Ethics Your Business.

Once these two factors are in place, the actual implementation can begin. To get the word out, it is not appropriate to hold a big meeting and say, "You all are now empowered! Now let's get to work like a nice big happy family." Instead, it needs to gradually be implemented so the working environment is not too disrupted. Focusing on one area at a time can further increase the success of the program because each area is concentrated on. Once it is implemented on a small scale, continuous communication and training should begin. Upper management and employees need to have training on empowerment and what the company guidelines are. It is vital that everyone knows where the company is headed with this new vision. Finally, and most importantly, rewards should be given throughout the whole process to help it be as positive a transition as possible (Perry, Phillip M.)

WHAT DOES EMPOWERMENT AFFECT AND HOW?

In the book, Empowerment: A Practical Guide for Success, the authors define empowerment as "fundamentally different ways of working together." There are several elements that must adapt for people to work together. Most of them can be grouped into mindsets, relationships, and structures (Scott, Cynthia D., and Dennis T. Jaffe).

The mindsets of the employees and the employers includes several emotions that may be affected. These are discussed in more detail in the next section. "Relationships" include such things as front-line workers talking to upper management and employees working as a team. Open communication and some form of trust must be present to form these relationships. The structure of the company is also effected. As empowerment increases, structures flatten. The degree of change in hierarchy may vary. Many levels may be cut out since employees do not need the constant supervision they did before. In any case, the communication channel become less bureaucratic.

WHAT CAUSES FAILURE?

It is human nature to resist change. So right off the bat, it can be a losing battle to implement an empowered workforce. There are many things that can go wrong. Seven are specifically pointed out in "Management. Beware These Mistakes When Giving Your Employees More Authority."

  1. Trying to change overnight.
  2. Not explaining boundaries.
  3. Not allowing open communication.
  4. Keeping information secret from employees.
  5. Having employees think they are doing it alone.
  6. Not having a monitor.
  7. Not giving feedback.
Employees may find a solution to a problem but end up disappointed that their idea is not acted upon. Even worse, the employee may get in trouble for acting on their decision in the best interest of the customer. They may be afraid of speaking up or just don't want to because they had been in a similar program before that failed. This is when the manager really needs to be a good facilitator and encourage the flow of communication.

There are other challenges of employee empowerment. Not only are there many emotions, there are also a lot of different personality types. There are three in particular that will pose some problems. The first is the employee that tries to become boss when the manager is gone. He/she goes by the book and instead of realizing that there are exceptions to the rules, especially when it comes to customer service. Next is the individual that does not want any blame or responsibility, so they send the customer to the manager. Lastly, there is the employee that wants to be everybody's favorite. In this case, too many rules are bent to make the customer happy. What can be done to prevent or resolve these challenges?

HOW CAN FAILURE BE AVOIDED?

All of these scenarios can be avoided if the the seven elements listed above are not present. Everyone shoud be thoroughly trained on how the process will work. Open communication will help the employee feel comfortable to ask for the manager's advice. The employee can make a decision if it is within the general guidelines and he/she informs the manager of what took place. The manager needs to stand by the decision of the employee if it is reasonable. The situation can then be evaluated after the customer has gone. Appraisal for a correct decision can be given, or new measures can be established for that particular situation for future reference. Handling a situation in this manner helps the confidence of the employees while improving the empowerment process. Also, the customer does not leave with negative feelings about the company since the problem was resolved promptly (Emmanuel, J. Daniel)

As an employee, there are ways to avoid the empowerment trap. An employee falls into the trap when they use their empowerment but end up with disappointment, frustration, and anger about the empowerment process. Before spending a lot of time and energy on a problem, there are some tips to keep in mind.

Managers' emotions are also an obstacle. Since they have always been the decision maker, they may feel they are now losing some of their power and responsibility. Many may get a sense of insecurity or lack of job security. In response, the managers may not share needed information to keep as much control as they can. They are basically shooting themselves in the foot. If upper management sees that the manager is holding the process up, the manager may lose his/her job. As was mentioned ealier, one manager can cause the empowerment process to fail. This change should be looked upon as an opportunity for both employees and employers to work together as a team. The manager should also realize that they are still the manager. A team still needs direction, advice, and positive reinforcement. Employees can use the feedback to improve the team and therefore, end results (Perry, Phillip M.) As a team, a better decision may be made than if the manager had done it alone. The manager can still take pride in the teams decision.

RESEARCH AND EXAMPLES OF EMPOWERMENT

In 1993, there was a Gallup survey called "Teaming Up For Quality." Of the 1,293 full-time employees who were interviewed over the telephone, eighty percent said there was some form of team involvement at their workplace. The teams had been in place for an average of five years. There were some interesting results regarding the use of teams and empowerment.

The general attitude toward working with teams was positive. Most respondents believed that there was a clear vision. Many knew how to measure their performance as they worked towards that vision. The results also showed that quality was the goal they were focused on (40% compared to efficiency and productivity at 22%.)

The involvement of employees has increased over the years. One question asked the respondents if they had been involved in a significant decision. The percentage of individuals answering 'yes' increased from 66% in 1990 to 74% in 1993. According to the survey, giving employees more decision making authority has had positive effects on the employees. Empowered employees "are more likely to: Believe on individual can make a difference in an organization. Have greater sense of having been asked to be involved in making significant decisions that will affect them on the job. Express greater satisfaction with the rate of quality improvement achieved by their organization during the past year. Be intensely trained on the job" (1993 ASQC/Gallup Survey.)

An example of empowerment in a company that is working extremely well is at Xerox. It is working so well that Working Mother magazine has had Xerox on its top 100 best companies for working mothers list all twelve years since the list began. Six of those have been in the top ten. What does Xerox do to empower its' employees?

Research was conducted at Xerox. It is thought to be the first measurable evidence showing that balancing life and work not only benefits the employee, but also the employer. Researchers went into three of the business units at Xerox. They eliminated any "invisible inefficiencies and non-productive work practices that exist in any job." If any employee had problems adjusting their lives outside of work to the new structure, solutions were given. The results were outstanding. Among the results, absenteeism decreased thirty percent. Also, a new high-tech product was delivered on-time, which is very unusual for that industry.

The empowerment at Xerox is angled at giving their employees more control over their home life instead of their job. The employees receive respect and help with balancing work and home life. They give back to the company in the form of motivation. Xerox offers other means of increasing motivation within its' employees. The company offers child-care subsidies, a plan to take day-care expenses out pre-tax, and flexible work arrangements to name a few (Laymon, Brent) There are many other creative ways to boost employee morale.

CONCLUSION

Although empowerment seems to be the latest fad in the business world, teams have been around for quite a while. Recently, in The Wall Street Journal, it was stated that the first team was implemented in 1898 by Filenes, a department store in Boston (1993 ASQC/Gallup Survey.) Now, employees are starting to be treated more as humans that can contribute to their company. Companies are also understanding that helping employees with their home life increases their morale. If respected, employees will respond with feeling of ownership. There is still a balancing of employees' empowerment and managers' control. The control is just subdued to the form of facilitating and monitoring. Just as with any sport, the team makes many of the decisions on the floor, but there is still a coach to call the delicate shots. Implementing empowerment is a long and detailed process. If not done correctly, it can result in diminishing returns. Employees will see it as just more talk and no action on upper management's part. There are many levels of empowerment. The degree of empowerment will vary depending on the company, the situation, and the people involved. Research on companies that have correctly implemented empowerment and are utilizing team work has shown encouraging results. I believe that every employee will perform better if even a slight amount of empowerment is given to them.

REFERENCES

Books:

Covey, Stephen R. 1989. The 7 Habits of Highly Effective People. New York: Simon & Schuster.

Scott, Cyntha D., Ph.D, M.P.H., and Dennis T. Jaffe, Ph.D. 1991. Empowerment: A Practical Guide for Success. U.S.:Crisp Publications, Inc.

Web Sites:

1993 ASQC/Gallup Survey. Teaming Up for Quality. deming.eng.clemson.edu/pub/tqmbbs/misc/teamsurv.txt

Chief Executive, U.S. April, 1992. Getting to team; empowerment of employees; CEO Roundtable.

Emmanuel, J. Daniel. 1996. The Challenges of Employee Empowerment. cucare.clever.net/emmanuel/empower/htm.

Flynn, Gillian. Make Employee Ethics Your Business. www.workforceonline.com/members/research/corporate_culture/2738.html.

Ivancic, Cathy. 1995. Don't Get Caught in the Empowerment Trap. www.nceo.org/columns/cil.html.

Laymon, Brent. 1997. Xerox Chariman Makes Business Case for "Family-Freindly" Work Culture. www.xerox.com/pr/nr970915-family.html.

Nance-Nash, Sheryl. 1996. Low-cost ways to boost morale. www.pathfinder/com/money/yourco/9608/960906.weekly.html.

Perry, Phillip M. 1996. Contruction Equipment Distribution Management. Beware These Mistakes When Giving Your Employees More Authority. www.aednet.org/aednet/ced/mar96/empower.htm.