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    International Journal of Contemporary Hospitality ManagementEmpowerment and organizational change

    Margaret Erstad

     Ar tic le information:To cite this document:Margaret Erstad, (1997),"Empowerment and organizational change", International Journal of Contemporary HospitalityManagement, Vol. 9 Iss 7 pp. 325 - 333Permanent link to this document:http://dx.doi.org/10.1108/09596119710190976

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    Linda Honold, (1997),"A review of the literature on employee empowerment", Empowerment in Organizations, Vol. 5 Iss 4

    pp. 202-212 http://dx.doi.org/10.1108/14634449710195471

    Conrad Lashley, (1999),"Employee empowerment in services: a framework for analysis", Personnel Review, Vol. 28 Iss 3 pp.169-191 http://dx.doi.org/10.1108/00483489910264570

     Adrian Wilkinson, (1998),"Empowerment: theory and practice", Personnel Review, Vol. 27 Iss 1 pp. 40-56 http://dx.doi.org/10.1108/00483489810368549

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    International J ournal ofContemporary HospitalityManagement9/ 7 [1997] 325–333

    ©MCB University Press[ISSN 0959-6119]

    Empowerment and organizational change

    Margaret ErstadResearch Manager (Europe) Worldwide Hospitality and Tourism Trends

    Among the many fashionablemanagement terms, empow-

    erment refers to a changestrategy with the objective of improving both the individ-

    ual’s and the organization’sability to act. Reviews the

    various themes of empower-ment with particular refer-ence to articles published

    between 1994-1996 in the journal Empowerment in 

    Organizations. The mainthemes are: creating anempowerment culture;

    empowerment as a manage-ment strategy; training anddevelopment for empowered

    employees; empowered teamsand implementation tech-

    niques and empowerment andorganizational change in thehospitality industry

    Introduction

    Empowerment is a topic that appears fre-

    quently in human resource, business, and

    management literature but more

    infrequently in the hospitali ty and touri sm

    li terature. This article aims to review thevarious themes of empowerment primarily i n

    the speciali zed publication,Empower ment in 

    Organ izat ions , dur ing 1994-1996 in order to

    expose empowerment theories and practices

    of potential value to the hospitali ty and

    tourism industri es. The empowerment litera-

    ture is divided into key themes which are

    subsequently summarized separately by

    subject in table form. The themes are then

    linked in a diagram in order to construct a

    larger image of empowerment as a change

    strategy. The article concludes with a discus-

    sion of the implications that empowerment

    research has for the hospitali ty industry.

    Defining empowerment

    Empowerment has been described as a means

    to enable employees to make decisions

    (Bowen and Lawler, 1992) and as a personal

    phenomenon where individuals take respon-

    sibil ity for their own actions (Pastor, 1996).

     The first definition relates to how manage-

    ment faci li tates and implements the empow-

    erment culture, whi le the second emphasizes

    the importance of the individual in the truly

    successful appli cation of empowerment.

    Wing (1996) uses the term personal empower-

    ment in relation to business consultants and

    views it as a strong self-analytical tool which

    allows them to understand and address their

    personal biases, differences of opinions, and

    experi ences with clients in order to be suc-

    cessful in change efforts. Whatever the defini -

    tion of empowerment used, the end goal is to

    develop the performance and potential of the

    individual as well as that of the organization

    (Long, 1996).

    Lashley (1996) defines empowerment in

    relation to an organization’s purpose forusing the strategy. I s empowerment deployed

    to achieve greater employee commitment, to

    gain i nformation from employees and

    improve the bottom-line, or to increase

    responsiveness to customers? Whi le the pur-

    suit of one objective does not automatically

    exclude the others, organizations may focus

    on a specific empowerment aim at the

    expense of potential gains from seeking other

    empowerment goals.

    Creating an empowerment culture

    Why the concern for empowerment? Nixon

    (1994) sees empowerment arising from exter-

    nal and internal challenges for organizations.

    External challenges have resulted as a result

    of higher levels of competition, changes in the

    composition of the workforce, and higher

    expectations from customers. Internal chal-

    lenges relate to employee retention, motiva-

    tion, and development.

    According to Beach (1996), empowerment

    remains with the indivi dual and cannot beimposed from above. How then can an envi-

    ronment conducive to empowerment be cre-

    ated? Organizations wishing to instil l a cul-

    ture of empowerment must find a way of 

    establishing systems and processes that do

    not restrict employees. By concentrating on

    what behaviour is considered optimal for the

    employees and what they do well, manage-

    ment can adapt, develop and change the orga-

    nizational structure to produce the sought

    after behaviour: employees dedicated to

    learning, growing, and developing; employ-

    ees who are self-managed; leadership not only

    existing at the top; a high level of trust

    between management and employees as well

    as among employees; employee participation

    in decision making; a high level of vertical

    and horizontal communication; and employ-

    ees able to deal with conflict management

    and resolution effectively and efficiently.

     To bring all this about, a shift in manage-

    ment thinking and management strategy are

    necessary. Col li ns (1996a) looks at histori cal

    debates on democracy to gain insight on how

    a radical change to organizational culture for

    empowerment can be developed. He looks at

    reasons why people fail to participate in ademocratic system and attributes this to

    either a lack of education and knowledge for

    groups to be able to participate or a failure to

    see the connection between participation and

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    Margaret ErstadEmpowerment andorganizational change 

    International Journal of Contemporary HospitalityManagement9/ 73 [1997] 325–333

    poli tical decisions. From this historical

    analysi s, there appear to be two essential

    ingredients for a successful i mplementation

    of empowerment in organizations: educationand participation in the decision-making

    process, particularly for decisions influenc-

    ing the individual’s sphere of influence.

    Parry (cited by Collins, 1996a) delves deeper

    into parti cipation theory and outlines three

    ways of viewing it:

    1 how participation takes place (direct or

    indirect);

    2 to what degree participation occurs (inten-

    sity and frequency); and

    3 the quality of participation (and resulting

    impact or change).

     Traditionally, and even today, collective bar-gaining has been the strongest form of 

    employee parti cipation. Could empowerment

    change this?

    An empowered organizational culture

    relies on the involvement of everyone, includ-

    ing both management and employees, to

    bri ng about i ts success. Simmons (1995) i llus-

    trates the overlapping or disappearance of 

    boundaries between formal and informal

    leadership to that of an inclusive organiza-

    tion where there are “leaders of leaders”.

    Empowerment may take the form of so-

    called empowered subcultures of low andmid-level managers cut off from the top eche-

    lons of an organization (Logan et al ., 1996).

     The commitment and participation of top

    management, the strategy and policy makers

    of an organization, are necessary for a truly

    comprehensive culture of empowerment to

    exist. Empowering employees does not mean

    disempowering managers but rather permits

    time and energy to be used more efficiently

    and productively by all players.

    Why should empowerment be taken

    seriously as a management strategy or

    organizational philosophy? Empowerment

    offers the potential for guaranteeing

    employee performance through a higher level

    of self-control (Coll ins, 1996b). In an organiza-tion such as Mazda, where there is an

    extremely thorough selection process to

    establish the prospective employee’s fit with

    the organization, the worker selected has

    demonstrated a wi ll ingness to commit to the

    organization and subsequently becomes an

    active member of an empowered system of 

    processes geared to stimulate and encourage

    his or her participation.

    Empowerment as a management

    strategyA five-point empowerment strategy is

    descri bed by Nixon (1994) in order to develop

    an organization where people can work as

    individuals and also in teams towards com-

    mon goals. The strategy consists of :

    1 establishing a vision;

    2 priori tizing and acting only where most

    impact is possible;

    3 developing strong relationships with col-

    leagues;

    4 expanding networks;

    5 using internal and external support

    groups. To create a synergy of outcomes, people

    should be channelled to work together on

    workshops and projects directly connected

    with organizational issues affecting them.

    Once the skills to work together on projects

    have been learned, the same process can be

    fur ther embedded in the organization by

    cascading the workshops throughout the

    organization.

    Cook (1994) summarizes essential stages in

    the empowerment process in a diagram that

    includes the vision, values, management role

    as facil itator, teamwork, training support andprocess improvement which are all reviewed

    and monitored at the end of the process.

    For L ong (1996), achieving an empower-

    ment objective for a company is closely linked

    to three important concepts: an annual strate-

    gic plan, annual personal performance-

    related appraisals, and training and develop-

    ment. Höpfl (1994) concurs in the need for

    goal setting with employee parti cipation i n

    determining individual and organizational

    objectives, courses of action, problem solving,

    and company policy.

    A programme at Ashworth Hospital used

    competence development through the accred-itation of work-based learning with a support

    structure based on action learning sets as the

    foundation of the empowerment project

    (Newton and Wilk inson, 1994). Project

    Monitor and review

    Create a vision

    Agree communication values

    Improve processes TrainDevolve responsibility Create teams

    Source: Cook (1994)

    Figure 1

     The empowerment process

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    MORALE used Mentorship, Ownership,

    Responsibi li ty, Accountabili ty, and Learning

    in order to achieve Empowerment.

    Although empowerment was not the termused initially to describe the changes under-

    taken at a publishing enterprise (Gore et al .,

    1994) to deal wi th internal and external chal-

    lenges, it is a very appropri ate way of describ-

    ing the resulting package of strategies. Orga-

    nizational change was brought about by con-

    centrating on: management action learning

    (10 per cent of payroll is now dedicated to

    above-the-line training investment); systems

    development; mentoring and coaching; and

    structural change including profit-related

    pay. The end result has been an organization

    where employees have grown and developedtheir response to change.

    With the background of an empowered

    organizational culture and management

    strategy, tools and techniques are needed by

    both management and employees if unreal-

    ized potential and individual entrepreneur-

    ship are to be created. The articles under the

    next topic heading describe some of the pro-

    grammes and methods used to provide higher

    levels of participation and empowered

    employees.

    Training and development f orempowered employees andemployee participation

     J ones et al . (1996) stress the need to shi ft away

    from controll ing to enabling in order for

    employees to contribute more. This requires

    new management ski lls to maximize

    employee potential. These ski ll s relate to co-

    ordination, facili tation, commitment and

    trust, communication, knowing more

    precisely what your people can and cannot

    do, and promoting learning and employee

    ownership of what they do. Identification

    with organizational values, competencebuilding, employee self esteem, delegation,

    and coaching are fundamental quali ties for

    employee participation (Potter, 1994).

    A three-stage traini ng structure for man-

    agers which begins at the bottom is advocated

    by Ni cholls (1995). In the first stage, an analy-

    sis is made of current capabili ties and

    employees are helped to work to their full

    potential. Next, managers need to use coach-

    ing techniques to get employees to work

    beyond their present capabili ties. Third, the

    commitment of the employees is obtained

    through the sharing of visions and values.When the last stage has been completed, then

    full empowerment has been achieved.

    When the training needs of the organizaion

    as a whole have been attended to, it may be

    necessary to identi fy any special areas or

    disadvantaged groups that would benefit

    from further preparation. Equal opportunity

    exists by law at the recrui tment level, yet

    once selected, employees from recognized

    disadvantaged sectors may require special

    efforts to allow them to parti cipate at the

    same level as other employees (Echiejile,

    1994).

    Kappelman and Richards (1996) advocateallowing employees to parti cipate early on in

    change programmes. Their study was under-

    taken in bank branches duri ng the implemen-

    tation of a data system. Some employees were

    able to decide the dates when they would

    undergo training, and data from this group

    were compared to employees who were not

    able to decide on the dates. The empowered

    employees from the first group were 88 per

    cent more motivated, 146 per cent more satis-

    fied with their training, and 99 per cent more

    satisfied with the change process.

     The suggestion method of employee partici-pation was used at Nissan where employees

    were expected to submit a pre-determined

    number of suggestions each month

    (Rodrigues, 1994). Employee participation

    was developed at Br itish Gas through the

    implementation of an employee suggestion

    programme designed to allow employees to

    recognize problems and possible soluti ons

    (Lloyd, 1996). Over a three year period,

    Br itish Gas received more than 11,000 sugges-

    tions of which approximately 10 per cent were

    implemented for an added value to the orga-

    nization of £10 mil li on. In order to obtain

    employee input, the organization must pro-vide an atmosphere which encourages and

    rewards employee participation. Essential

    in thi s process is the need for managers to

    stimulate, communicate, and encourage

    Figure 2

     The second stage of empowerment – as a coaching enabler

    Personal capability

    Potential

    Current

    Current capabilityof achieving fullpotential

    Current Enhanced

    Stretching beyond

    Coaching

    Enabler

    ENABL

    ER

    Source: Nicholls (1995)

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    Margaret ErstadEmpowerment andorganizational change 

    International Journal of Contemporary HospitalityManagement9/ 73 [1997] 325–333

    employees to participate in the flatter organi-

    zation.

     The Briti sh Gas suggestion process relies

    on a closely defined structure to ensure suc-

    cessful implementation of the empowerment

    concept. At the time of submitting a sugges-

    tion, all employees are offered a scratch card

    with a maximum prize value of £5. This

    incentive was developed as a way to get peo-

    ple to participate. Each suggestion is given

    careful consideration with the maximumtime between suggestion submission and a

    management decision regarding the added

    value of the suggestion limited to 72 hours.

     Those suggestions adding value and in line

    with business objectives receive an award of 

    10 per cent of the added value minus any costs

    accrued during the first year i t is

    implemented. When awards are implemented

    for the business uni t as a whole, the maxi-

    mum is increased a further 10 per cent or up

    to a maximum of £2,500. Cr itical to the suc-

    cess of the evaluation and suggestion stages

    of the programme is the fact that these have

    become items on which managers are mea-

    sured in their performance appraisals. Eachyear an award presentation attended by top

    management and line managers is held

    where the best award receives a trip to the

    value of £5,000.

    Table I

    Creating an empowerment culture and management strategy

    Aut hors Focus Sub-t hemeBeach (199 6) Relates the experience of one organization Practical examples of changes

    in establishing an empowerment culture through through focusing on employeenon-traditional management performance and commitment are given

    Collins (199 6a) Links the concept of empowerment to The lack of more frequent debate on

    participation and democracy to show the empowerment in management literaturecomplexity of theory and debate in this field is also reflected in the absence of 

    discussion on empowerment within

    businesses

    Collins (199 6b) Views empowerment as a part of a greater Management control and governancewhole, that is a part of management control are reviewed by using the examples of systems Nissan and Mazda

    Cook (1994) Reflects on the impact of empowerment on Training and teamwork support areorganizational culture when employees are important components of anable to influence their work empowered culture

    Gore, Toledano and Looks at an empowered leadership strategy How use of action learning as aWills (1994) for MCB publishing to include management action management strategy can facilitate

    learning; systems development; mentoring and change

    coaching; and structured change

    Höpfl (1994) Considers the relationship between management Gaps may often spring up betweendevelopment and self-development for empowered management objectives and everydaymanagement practices

    Logan et al. Reflects on the subject of empowerment as Empowerment seen not only from a(1996) members of the Editorial Advisory Board of professional role but also from a

    Empowerment in Organizations  personal one

    Long (1996 ) Follows a case study over four years primarily Empowerment requires top to bottomin health-care companies involvement with employee appraisals

    an intricate part of the process

    Newton and Examines an empowerment project for 80 Organizational change is only possibleWIlkinson (1994) first-line and middle managers at a hospital in with the firm commitment and

    the UK to enable them to take ownership of their dedication of management jobs and ultimately improve the hospital’s

    performance

    Nixon (1994) Sees empowerment as a function of leadership Difficulties associated withand organizational culture and tries to apply empowerment and learning are

    practical strategies for achieving this state discussed in order to revise existingprogrammes and processes

    Simmons (1995 ) Calls for a partnership between workers and Employee motivation is not only

    management as a means of encouraging workers materialistic but non-material strategiesto give their energy and commitment can be effective motivational tools

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    Margaret ErstadEmpowerment andorganizational change 

    International J ournal of Contemporary HospitalityManagement9/ 73 [1997] 325–333

    Legislative and policy changes forced one

    local authori ty to look at how the organiza-

    tion was functioning and take action geared

    to customer needs. All staff participated in

    key activities: the formulation of a statement

    of purpose, a communication charter, and

    performance appraisal wi th the outcome

    being a high level of energized creativi ty and

    innovation throughout the organization.

    Seminars and questionnai res were used tolaunch the empowerment programme with

    input from employees on what areas they felt

    the organization was actually hi ndering their

    work. Quick win situations were created with

    an award system, communications working

    group, and organizaional learning. To ensure

    managers were responsive to their employ-

    ees, performance reviews of managers

    included employee development, 360 degree

    appraisal, and managers’ achievements

    through delegation and the use of man-man-

    agement skills.

    Employee parti cipation may happen in the

    form of employees taking part in decisionsand making their own individual contribu-

    tion, employees working together with man-

    agement, or employees collaborating with co-

    workers in project or work groups (Nykodym

    et al ., 1994). The next section reviews the

    li terature on empowerment in the context of 

    empowerment implementation with the pur-

    pose of gaining knowledge of ways to put

    empowerment theory into practice effectively

    in general and more specifically through the

    use of teams.

    Empowerment implementationtechniques and empowering teams

     The term “catalytic empowerment” is used

    by Dickmeyer and Will iams (1995) to refer to

    techniques applied to unprofitable companies

    in order to make them profitable. When the

    empowerment process is set in motion, a

    chain reaction occurs drawing employees,

    suppliers, customers, and stakeholders into

    the transformation.

    One method of putting empowerment into

    practice is by creating self-managed project

    or product work groups (Marguil ies and

    Kleiner, 1995). These teams have the ability tomake decisions regarding the project and

    input information impacting on organiza-

    tional strategy. Bui lt into the empowerment

    of teams is a reward system recognizing the

    Table I I

    Empowerment in training and development and employee participation

    Aut hors Focus Sub-t hemeDavis and Empowerment used as a tool to transform the The learning organization and staffStocking (1996 ) culture of a typical local authority bureaucracy development

    Echiejile (199 4) Gives examples of empowerment programmes Special programmes viewed not as awhere the needs of disadvantaged employees burden for organizations but a win-win

    are considered opportunity

    Jones et al . (1996) Looks at how to get the most out of people and Information technology is not asee people as the key to organizational change substitute for human qualities andand success capabilities

    Kappelman Examines how a small degree of empowerment in Empowerment becomes a wayand Richards a change programme positively affected the individuals can exert control in a change(1996) success of the programme situation

    Lloyd (1996 )  The flatter organizational structure at British Gas Organizaional culture and a participativerequired new suggestion systems in order for environmentemployees to participate and influence change

    Nicholls (1995) Interprets empowerment as a state or frame of The broadening of an individual’s work

    mind requiring training and not something merely challenges employees and enhancespassed on from one person to the next personal development

    Nykodym et al. Employee participation through empowerment Some of the potential negatives with(1994) can take many forms and employ many empowerment strategies are illustrated

    management techniques

    Pott er (1994) Describes how empowerment has changed the Empowerment and employee partici-role and activities of managers and defines a pation linked to the mission statement

    ten-point action plan

    Rodrigues (1994 ) Raises the difficulties involved in empowerment Empowerment requires ongoing trainingprogrammes in order to bring about organizational and development

    effectiveness

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    International Journal of Contemporary HospitalityManagement9/ 73 [1997] 325–333

    contribution of the team as a unit. Worki ngon a group project develops bounds between

    team members and employee motivation

    rises through greater job satisfaction and self 

    actuali zation. Organizational communica-

    tion also benefits since group projects stimu-

    late lateral exchanges as opposed to vertical

    communication. Self-management does

    require certain conditions to function prop-

    erly. These are a level of task differentiation,

    the degree to which the group has control

    over its project, and the level of empower-

    ment in the decision-making process.

    Pence (1996) has designed a self-diagnosticquestionnaire to determine an organization’s

    commitment to teams. The 15 questions cover

    pertinent issues and the company’s relation-

    ship with teams including top management

    commitment, recrui tment, managementappraisals, training, standards, rewards and

    recognition, communication, policies and

    procedures, and facili ties. For Brower (1995),

    empowerment consists of four A’s which must

    be aided by suitable information, support

    from within the organization, and several

    types and levels of leadership to be successful

    (Fi gure 3).

    In a survey of 600 companies in diverse

    sectors covering 12 employee characteristics

    of quali ty, empowerment was ranked as very

    important by 53 per cent of respondents

    (J olton cited in Logan, 1995). Responses forthe 12 dimensions ranged from 43 per cent for

    development to 76 per cent for customer ori -

    entation. For Cleary (1995), empowerment is

    also closely linked with quali ty improvements.

    Table III

    Empowerment implementation techniques and empowering teams

    Aut hors Focus Sub-t hemeBorn and Rewarding employees for empowered behaviour The character of the job often determinesMolleman (1996) is complex in traditional pay systems thus the degree of empowerment possible

    requiring more flexible systems of reward

    Brower (1995) Delves into the issue of empowerment in teams In order to achieve empowerment, basic

    and develops a model of empowerment development tools are required

    de Burgundy (199 6) Critiques the use of management consultancies Management techniques used byand advocates organizations use their own workers consultants are reviewedto understand how the organization functions

    Cleary (1995 ) Exposes empowerment as a way to improve The process of empowerment bringsquality by using the plan-do-study-act theory of about unknown and unknowable benefitsDeming for the organization

    Dickmeyer and Discuss the term catalytic empowerment where Performance measurement is necessaryWilliams (1995) consultants turn around unsuccessful companies to test the success of empowerment

    Harley (1995 ) Cites the need for balancing operational and human Organizational authority, if used properly,issues for empowerment and describes eight key can unleash hidden human potential

    principles to accomplish this

    Logan (1995 ) Includes empowerment in the larger framework Human quality is often neglected in theof actions driving quality within an organization drive for superior technological quality

    Marguilies and Describes empowerment in terms of how work Empowerment seen as a package ofKleiner (1995 ) groups are designed and highlights the concept behavioural and support attributes

    of self management for these groups

    Miller (1996) Advocates the use of humour as a way to Positive feedback and stroking can do

    stimulate empowered cultures much to raise employees’ self-esteem

    Morley (1995)  Theorizes about the use of empowerment in Empowerment can be misused as athe public sector manipulative technique by management.

    Pearson and Assess the implementation of empowerment in Empowerment viewed as it is cascadedChatterjee (1996) a study of its introduction in an organization and throughout the organization

    presents a model for implementation

    Pence and Gives a practical example of an empowerment Article is concluded with a short reviewLunderman ( 1995 ) programme with impacting employee participation and critique of the programme that was

    at lower management levels implemented

    Pence (1996 ) Uses a technique of self-assessment to measure Support systems are fundamental to thean organization’s commitment to empowered success of empowered teams

    teams

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    Empowering employees who possess first-

    hand knowledge of their work can take place

    by using quali ty guru Edward Deming’s plan-

    do-study-act cycle. Cleary demonstrates howresponse time was reduced for support calls

    to a software and training organization as a

    result of a team of employees’ analysis of the

    process and actions to improve it.

    Miller (1996) sees humour as a powerful

    empowerment tool to stimulate the communi-

    cation and creativity processes as well as

    relieving stress. Empowered organizations

    should also be fun environments for manage-

    ment and employees.

     The inherent difficulties of traditional pay

    and reward systems to recognize and incorpo-

    rate empowerment has led Born and Molle-man (1996) to conclude that more flexible pay

    systems would be needed to deal appropri-

    ately wi th rewarding individual and/ or team

    empowered performance. Figure 4 i llustrates

    the elements of empowerment, beginning

    with the concept of a change strategy and

    ending with results.

    Empowerment and the hospit alit yindustry

    Lashley (1996) wr ites of the gap between man-

    agement’s intention in using empowermentstrategies and employees’ experiences wi th

    empowerment in the hospital ity sector. If 

    employees interpret empowerment as added

    responsibi li ty and an increased workload

    without a corresponding reward, whether

    monetary or nonmonetary, they are unlikely

    to respond positively to i t. Empowerment

    should be a matter of choice and not obliga-

    tion. A five-dimensional model of empower-

    ment for hospitality operations was devel-

    oped by Lashley and McGoldrick (1994, p. 31)

    to include: “the task dimension, the task

    allocation dimension, the power dimension,the commitment dimension and the cultural

    dimension”.

     The work of Huanget al . (1996) looked at

    how different cultures react to poor hotel

    service. They found that in the case of Ameri -

    can customers with complaints, these cus-

    tomers sought out higher-level management

    to address their problem. Empowerment may

    therefore need to take into account the cus-

    tomer’s attitude towards empowered employ-

    ees and some form of educating the

    customers might be required to inform them

    as to what the empowered employees are

    entitled to do and what issues these employ-ees can address. At Radisson Hotels in Swe-

    den, a brochure entitled “No Excuses” is

    found in each room which sets out 12 attrib-

    utes of the room that must be in perfect

    working order or repaired within one hour. If 

    the problem is not resolved, the customer will

    be moved to a new room. I f there is no other

    room available, the customer wi ll be not be

    charged for the room. The customers and the

    employees know exactly what the conditi ons

    of the guarantee programme are and can act

    accordingly.

    Maxwell’s (1997) case study of 

    empowerment at the Glasgow Marriott,

    which used an employee questionnaire, dis-

    covered that employees had a positive

    approach to empowerment although advan-tages and disadvantages were also clearly

    stated. Advantages for the employees included

    higher levels of job satisfaction, better cus-

    tomer servi ce, more rapid decision making,

    and personal development. Some of the

    deficits employees found in empowerment

    related to communication difficulties, unclear

    work practices, higher levels of pressure on

    staff, and increased competition among

    employees. Equally important was the need to

    support the early stages of the empowerment

    process with training to clarify the extent and

    implications of i ts use.In the service sector, and more specifically

    the hotel industry, empowerment i s often

    seen as a way to gain competitive advantage

    with the consumer. However, the true poten-

    tial of empowerment is broader. Dickmeyer

    and Willi ams’ (1995) article on turning

    around unprofitable companies demonstrates

    the impact of empowerment and change on

    six performance measures: employee

    turnover (a decline with empowerment),

    increase in sales per employee, a higher profit

    margin, lower material cost as percentage of 

    sales, lower labour cost as a percentage of sales in two out of four cases, and higher net

    profit dollars. Empowerment can thus be

    li nked to soft measures of performance

    exposed by Brander-Brown and McDonnell

    Figure 3

    Building blocks of team empowerment

    Information

    Leadership

    Support

    AblenessAccountability

    Authority Alignment

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    Margaret ErstadEmpowerment andorganizational change 

    International Journal of Contemporary HospitalityManagement9/ 73 [1997] 325–333

    (1995) wi th the use of the balanced score-card

    concept in the hotel sector.

    Conclusions

    Empowerment has been explored in the con-

    text of articles from a journal specializing in

    thi s area. The concept can be approached

    from many angles, and organizations want-

    ing to embrace thi s approach to business

    must be ful ly aware of its complexity.

    Empowerment is not something which can

    be passed over from management to employ-

    ees as a pen i s handed from one person to

    another. It is a complex process which

    requires a clear vision, a learning environ-ment both for management and employees,

    and parti cipation and implementation tools

    and techniques in order to be successful.

    Whi le the hospitali ty industry has been

    quick to latch on to the potential of empower-

    ment for a sector so reliant on human capital,

    many lessons can be learned from research

    and experi ence in other business sectors in

    order to achieve a truly entrepreneurial

    culture throughout all levels of the organiza-

    tion.

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    Empowerment and organizational change

    Empowerment as achange strategy

    Managementbehaviour

    Managementstrategies and

    empowerment objectives

    Implementationtechniques

     Training anddeveolpment

    Employeeentrepreneurship

    Employee participation as individuals and

     in teams

    Rewards and recognition for individual,team and organisational results

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    Margaret ErstadEmpowerment andorganizational change 

    International J ournal of Contemporary HospitalityManagement9/ 73 [1997] 325–333

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