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    EMPLOYEEEMPOWERMENT

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    A primary goal of employee empowerment is to give

    workers a greater voice in decisions about work-related matters.

    Their decision-making authority can range from

    offering suggestions to exercising veto power

    over management decisions.

    Possible areas include: how jobs are to be

    performed, working conditions, company policies,

    work hours, peer review, and

    how supervisors are evaluated

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    Benefits of Empowerment

    All ees view themselves as Owners of the business

    Improved productivity

    Creativity & Innovation

    Customer-focus Faster decision-making

    Organizational learning

    Making full use of Human resources-

    Engaging the mind of every employee

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    Degrees of Empowerment

    Total management control- No employee discretion

    Participatory management- management generally

    controls the work & the context,but allow ees to make

    some decisions(typically minor ones)

    Self-management- ees make most decisions

    pertaining to their work and work setting

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    Empowered People

    Gretchen Spreitzerfound that ees who feelempowered share the following 4 beliefs:

    Meaning-belief that ones work is aligned withhis/her values

    Competence-belief that he/she has the ability toeffectively complete his/her work role

    Self-determination-belief that he/she has the freedom& right to decide how to approach his/her work,

    without being micromanaged Impact-belief that he/she can influence organisation

    outcomes

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    Organizational improvement through

    employee empowerment First, empowerment can strengthen motivation by

    providing employees with the opportunity to attain

    intrinsic rewards from their work, such as a greatersense of accomplishment and a feeling of importance.

    Intrinsic rewards such as job satisfaction and a sense

    of purposeful work can be more powerful than

    extrinsic rewards such as higher wages or bonuses.

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    The second means by which employee empowerment

    can increase productivity is through better decisions.

    Especially when decisions require task-specific

    knowledge, those on the front line can often betteridentify problems.

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    TOYOTA

    Toyota Motor Company empowers some of its

    employees to identify and help remedy problems

    occurring during product assembly. An automobile

    coming offToyota's assembly line with a paint defectis seen as an opportunity to delve into the root cause

    of the defect, as opposed to merely fixing the defect

    and passing it on to distributors for resale.

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    Solutions resulting from employee involvement tendto have more employee buy-in when it comes to

    implementation. Because such solutions are

    generated from the front lines, this further enhances

    the potential for productivity improvements byreducing the attitude that solutions are "passed down

    from above."

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    A number of different human resource management

    programs are available that grant employeeempowerment to some extent. A number of these are

    discussed in the following sections including-

    Informal participative decision-making

    programs

    Job enrichment

    Continuous improvement

    Self-managed work teams.

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    Informal Participative

    Decision-making Programs

    Informal participative decision-making programsinvolve managers and subordinates making joint

    decisions on a daily basis. Employees do not enjoyblanket authority to make all work-related decisions;managers decide just how much decision-makingauthority employees should have in each instance.The amount of authority varies depending on suchsituational factors as decision complexity and theimportance of employee acceptance of the decision.

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    While it may seem obvious, one key to

    empowerment is choosing under what

    conditions to empower employees. Employees

    should be empowered in situations where they

    can make decisions that areas good as, or better than,

    those made by their

    managers.

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    Issues with Empowerment

    (Managers) Managers misunderstand it.

    Managers only pay it Lip Service.

    Organizations are not prepared in terms ofstructure,culture & rewards.

    Managers are displeased when empowered workersmake decisions that differ from their expectations.

    Managers expect to see results without having tomake a strong commitment or taking risks.

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    Issues with Empowerment

    (Employees) ees need the skills and training to manage

    risks and decision-making.

    Many ees dont want the added responsibilityand accountable & are uncomfortable with

    putting their necks on the line.

    Not all people are conscientiousenough to be empowered.

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    Job Enrichment

    Job enrichmentaims to redesign jobs to be more intrinsicallyrewarding. Certain job characteristics help managers to buildenrichment into jobs. These characteristics include:

    Skill variety- The various skills needed to perform a giventask, where increased skill requirements are associated with

    increased motivation. Task identity- The degree to which employees perceive how

    their job impacts the overall production of a product orservice.

    Task significance- Whether the task is meaningful beyond the

    task itself. Autonomy-Employee discretion over how to perform a task.

    Feedback-Input from peers and supervisors regarding thequality of an employee's work.

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    Combining tasks- This involves assigning

    tasks performed by different workers to a singleindividual.

    For example, in a furniture factory, rather thanworking on just one part of the production process,each person could assemble, sand, and stain anentire table or chair. This change would increaseskill variety, as well as task identity, as each worker

    would be responsible for the job from start to finish.

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    Establish client relationships- Client relationships

    could be established by putting the worker in touchwith customers.

    For example, an auto dealership service departmentcould allow its mechanics to discuss serviceproblems directly with customers, rather than going

    through the service manager. By establishing clientrelationships, skill variety is increased becauseworkers have a chance to develop interpersonalskills. It also provides them with a chance to do alarger part of the job (task identity), to see how

    their work impacts customers (task significance),and to have more decision-makingauthority(autonomy).

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    Continuous Improvement Often referred to as Total Quality Management,

    these programs empower workers to trace product orservice problems to their root causes and redesignproduction processes to eliminate them using variousproblem-solving and statistical techniques. The use ofcontinuous improvement programs have grownrapidly, built on the successful experiences ofnumerous companies.

    Xerox, for example, was able to decrease the number

    of customer complaints it received by 38 percent afterimplementing continuous improvement methods.

    Motorola reduced the number of defects in itsproducts by 80 percent. .

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    Self-Managed Work Teams

    Self-managed work teams are not for allorganizations; characteristic needed for successinclude:

    Technical

    Interpersonal skills

    Administrative skills

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    Drawbacks can include:

    Rivalry within and across teams.

    A shortage of time and skills on the team to deal with

    conventional management concerns like hiring,

    training, and resolving interpersonal disputes.

    Difficulty appraising employees in the absence of a

    traditional management figure.

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    Success Factors

    Rewards have to encourage empowerment, notcompliance with rules.

    Sharing responsbility means sharing in the rewards-performance based pay is crucial.

    Empowerment requires sharing of information- booksneed to be opened to ees.

    ees need to be trained to makesmart decisions.

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    Success Factors Continued

    Management needs to be committed to giving updirect control for value- based control.

    Management needs to be trained facilitators not

    controllers. Management must be willing to accept risk &

    uncertainity & to tolerate mistakes.

    Management must seek empowerment for the right

    decisions.

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    Low role

    ambiguity

    Wide span

    Ofcontrol

    Political

    Support

    Access to

    information

    Org.

    Climate

    Education

    &

    Training

    Conditionsinspiring

    Empowerment

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    On empowerment..

    A funny thing happens when you take the

    time to educate your employees, pay

    them well, and treat them as equals. You

    end up with extremely motivated and

    enthusiastic people.

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    ThankY

    ouBy: Poonam Gupta