Employee Empowerment Vijeth A 04119

A Study on
EMPLOYEE EMPOWERMENT IN THE I.T. SECTOR

A Dissertation Submitted in partial fulfillment of the requirement for the award of M.B.A Degree of Bangalore University
Submitted By
(REG.NO:04XQCM 6117)
VIJETH A.
Under the Guidance and Supervision

Of
Prof. Dr. V. Prakash
M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan, # 43, Race Course Road, Bangalore-560001. 2004-2006
M.P. Birla Institute of Management
Declaration
I hereby declare that this report titled Employee empowerment systems in the I.T. Sector is a record of independent work carried out by me, towards the partial fulfillment of requirements for MBA course of Bangalore University at M.P.Birla Institute of Management. This has not been submitted in part or full towards any other degree or diploma.
Date: Place:
Vijeth A.
(04XQCM6117)
Principals Certificate
This to certify that this report titled Employee empowerment systems in the I.T. Sector has been prepared by Vijeth A. bearing the registration number 04 XQCM6117 under the guidance and supervision of Prof. Dr. V. Prakash, Professor, MPBIM, Bangalore. This has not formed a basis for the award of any degree/diploma of any university.
Place: Bangalore Date:
Principal (Dr.N.S.Malavalli)
GUIDES CERTIFICATE
This is to certify that the Project Report entitled Employee empowerment systems in the I.T. Sector, done by Vijeth A. bearing registration No.04XQCM6117 is a bonafide work done carried under my guidance during the academic year 2005-2006 in a partial fulfillment of the requirement for the award of MBA degree by Bangalore University. To the best of my knowledge this report has not formed the basis for the award of any other degree.
Date:
Prof. Dr. V. Prakash, Adjunct Professor,
Place: Bangalore
M.P.B.I.M.
ACKNOWLEDGEMENT
I take this opportunity to sincerely thank to Dr.N.S.Malavalli, Principal, M.P.Birla Institute of Management, Bangalore, who has given his valuable support during my project.
I would like to express my profound gratitude to Dr. V. Prakash, Professor, M.P.Birla Institute of Management, Bangalore, for his constant support, encouragement and guidance throughout this research work .
I equally thank all the respondents who have rendered their sincere opinions and suggestions and helped me successfully complete this research work.
Last but not the least, I express my sincere gratitude to my family and friends who have directly or indirectly helped me complete this project.
Vijeth A.
Table of contents
Chapter Executive Summary Title Page no. 1
Introduction 1 Industry profile Problem statement Justification and Significance Research Objectives 4 6 7 7
Theoretical Framework Employee Empowerment and Its Importance Different Systems of Staff Empowerment Objections Overcome 2 The Empowerment Environment The Apprenticeship Model of Empowerment The Empowerment Development Process Situational Leadership Benefits When It Is Correctly Implemented When Employee Empowerment Does Not Work? 8 10 17 21 34 36 37 38 39
Review of Literature 3 Purpose of Literature Review Methodology of Literature Review Benefits from Literature Review 41 41 52
Research Methodology 4 Hypothesis Type of Research Sampling Technique Types of Data Sample Size Research Techniques Statistical Tools Used for Analysis Scope and Limitations of the Research Profile of the Respondents 53 53 53 53 54 54 54 54 55
Data Analysis and Interpretation
56
List of findings
78
Conclusion
81
Recommendations
82
Annexure
85
List of Tables Table No.

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21
Title
Response to question 1 Response to question 2 Response to question 3 Response to question 4 Response to question 5 Response to question 6 Response to question 7 Response to question 8 Response to question 9 Response to question 10 Response to question 11 Response to question 12 Response to question 13 Response to question 14 Response to question 15 Response to question 16 Response to question 17 Response to question 18 Response to question 19 Response to question 20 Response to question 21
Page No.
56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
List of Graphs
Graph No.
4.1 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21
Title
Page No .
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
Graph showing experience wise break up of the respondents Response to question 1 Response to question 2 Response to question 3 Response to question 4 Response to question 5 Response to question 6 Response to question 7 Response to question 8 Response to question 9 Response to question 10 Response to question 11 Response to question 12 Response to question 13 Response to question 14 Response to question 15 Response to question 16 Response to question 17 Response to question 18 Response to question 19 Response to question 20 Response to question 21
EXECUTIVE SUMMARY
As a part of course curriculum of degree of Business Administration at Bangalore University, I am required to under take a research project at the end of 4th semester. It enables me to know the realities of the business and application of theoretical knowledge in practically. In fact the purpose of the training is to create the managers with great adaptability and who can provide creative solutions to the organization they work with, it helps the student to become a complete manager for the industry. This project is the effort of mine for the fulfillment of the same.
Over the past several decades, the traditional superior-subordinate model for management has given way to more democratic approaches, where decisionmaking is shared. A core concept for most of these new approaches to management is empowerment.
The process of giving an employee sizable control over the processes, environment, and/or products that are affiliated with his or her respective employment. Empowerment is the process of supporting and encouraging the employees to fully utilize their skills, abilities and creativity to accept ownership and accountability for their job/project. Empowerment includes supervisors and employees working together to establish clear goals and expectations within agreed-upon boundaries.
How can new IT managers use employee empowerment to improve team performance and enhance their own success within an organization?
This project aims to study the various Employee Empowerment systems in the corporate context and also tries to assess the managers as well as the subordinates views on empowerment. The study identifies the various employee empowerment systems implemented in IT organizations. The various
prerequisites for employee empowerment as well as the benefits if empowerment is implemented effectively are also discussed.
A survey is therefore done to collect the required information. The type of research chosen is quantitative in nature. Structured questionnaire has been prepared and discussed personally with the respondents. Secondary data is obtained through books, journals, websites Statistical tools like percentage analysis, charts and graphs are used for the analysis of the response obtained. The study is limited to Bangalore city only. Analysis is done assuming that the responses given are true and correct.
The sample size is restricted to 100 employees of 2 organizations. The respondents selected are mainly from the middle level managers having about 10 years of experience and software engineers with 1-6 years of experience in their domain respectively. Percentage analysis is used to analyze the response.
Findings of the research are listed below Employee empowerment systems have been effectively and successfully implemented in the organizations surveyed. Employees actively participate in the decision making processes of their organization. Sufficient amount of quality training is provided to the employees in organizations implementing empowerment. Rewards and recognition systems are in place and risk taking is encouraged on the part of employees. Most of the employees prefer empowerment and believe that
empowerment motivates the employees to perform better, creates a sense of responsibility amongst the employees, helps to provide better customer service, helps in bringing out new ideas and hence would do good for an organization.
INTRODUCTION Industry Profile

IT Industry
Over the last decade, India has developed into a major and credible information technology (IT) outsourcing centre. In India, the software boom started somewhere in the late 1990s. Most of the Indian software companies at that moment offered only limited software services such as the banking and the engineering software.
Information Technology (IT), a knowledge-based industry, has the tremendous potential of becoming an engine of accelerated economic growth, productivity improvement for all sectors of the economy and means of efficient governance. The IT software and service industry has been categorized into three broad sectors Software Product and Technology Services, IT Services, and IT Enabled Services.
It enhances access to information, protects consumers, provides access to government services, makes skill formation and training more effective, improves delivery health services, and promotes transparency. It provides tremendous employment potential and linkages between government and the people both at the rural and urban level. Investment in knowledge-based industries will determine the level of the countrys dominant position in the world economy in the next two decades.
The IT sector is one of the fastest growing segments of Indian industry, growing
from Rs. 13,200 crore in 1992-93 to Rs. 80,884 crore in 2001-02. Sixty per cent (Rs. 48,134 crore in 2001-02) is accounted for by software and the remaining 40 percent (Rs. 32,750 crore) by hardware. IT is an area where the country has a competitive edge and can establish global dominance. Advancements in IT have a profound impact on the economy and the quality of human life.
The ITES sector in India has emerged as a key engine of growth for the Indian IT industry and the technology-led services industry. This sector has grown from Rs. 2,400 crore in 1999-2000 to Rs. 4,100 crore in 2000-2001, providing employment to 70,000 people.
The major users of IT services are the government, financial services and banking, manufacturing and retail and distribution. New areas likely to emerge are communication, healthcare and utilities, as these will increasingly be deregulated. However, IT services essentially require high-quality manpower, state of the art skills, world-class telecom and IT-knowledge based environment.
Status of IT Software Industry in India and Global
The Indian IT software and service industry has emerged as one of the fastest growing sectors in the Indian economy, with a growth rate exceeding 50 per cent in exports and 40 per cent in the total IT industry over the last five years. Software Product and Technology Services provide a high growth opportunity for the Indian software industry. Indian companies have a market potential of software product development, such as enterprise software (e-business solution, ERP, ecorporate governance), consumer software (personal productivity tools) and embedded software.
Indian companies have developed a number of highly acclaimed and popular packages, such as HR management and business accounting by TCS, banking automation packages by Infosys, ERP tools by RANCO, etc. The total global software and IT services market is estimated to be about $ 1.2 trillion of which Indias share is 2 per cent. The Indian software industry is under threat from emerging competitors. US technology firms are rapidly shifting back-office functions to India. Foreign firms are eagerly waiting to set up centers to process financial claims, payroll-data, and building customer-support desk. The overall success of the IT industry in India has shown spill over effects to other industries in the country. The Indian economy has grown at an average rate of 6.0% a year during the last five years. In India, the success of software industry can be attributed to the excellent teamwork between the Government and the Industry. Government of India, considering the performance of the Indian software industry, has extended all support, including fiscal benefits, availability of high-speed data communications and infrastructure and has ensured almost red tape free system. Problem Statement
This project aims to study the various Employee Empowerment systems followed in organizations today. The study aims to highlight the significance of such Employee Empowerment systems in the corporate context. Thus the study tries to establish the link between Employee Empowerment system and organizational effectiveness. The study also aims at finding out whether employee empowerment has been implemented in organizations at a larger degree.
Justification and Significance
Employees are the most important asset of an organization. They are like the backbone of the organization. With a pool of talented and highly motivated employees the organizations the organizations can achieve new heights. In order to keep the employee motivated enough it is important for an organization that in addition to the compensation offered, sufficient empowerment of employees is facilitated. Empowerment also brings about continuous learning in employees that fosters organizational growth and development. Therefore a study of the same is extremely important in todays organizational context. Research objectives
1. To study the various Employee Empowerment systems in the corporate context. 2. To study both the employees as well as the managements point of view of Empowerment. 3. To highlight the significance of the Employee Empowerment systems in the corporate context and establish the link between Employee Empowerment system and organizational effectiveness. 4. To study the degree to which employee empowerment systems are implemented in organizations.
THEORETICAL FRAMEWORK Employee empowerment and its importance
Traditional organizations rely on an authoritative culture of subordinates complying to orders. Workers are given little or no encouragement to display initiative. It therefore seems clear that within the traditional system there is a stifling of employee potential and therefore the organizations. It is suggested that there is a need for change to a more 'open' and flatter
management/organizational system such as empowerment. However when looking at road to empowerment and whether it is paved with good intentions the question we should be asking is who is gaining from empowerment is it the shareholders, management the workers or is it a combination. It therefore comes down to whether it is intended for empowerment to create job enrichment or enlargement. The process of giving an employee sizable control over the processes, environment, and/or products that are affiliated with his or her respective employment. Empowerment is the process of supporting and encouraging the employees to fully utilize their skills, abilities and creativity to accept ownership and accountability for their job/project. Empowerment includes supervisors and employees working together to establish clear goals and expectations within agreed-upon boundaries. Employee empowerment is a process whereby a culture of empowerment is developed; information-in the form of a shared vision, clear goals, boundaries for decision making, and the results of efforts and their impact on the whole-is shared; competency-in the form of training and experience is developed; resources, or the competency to obtain them when needed to be effective in their
jobs, are provided; and support in the form of mentoring, cultural support, and encouragement of risk-taking is provided.
Every employer uses employee empowerment to some extent. No organization of more than one person can survive without some employee empowerment. When the owner of a Mail Boxes, Etc. hires someone to work the weekends, that person is empowered. When a manager hires an accounting graduate to maintain the departmental ledger, that person is empowered. When the director of advertising chooses which slogan should go on the web banner, that person is empowered. In each of these instances the empowered person has been provided with the training and experience they need to be effective in their position. Each has the information to know how their decisions will impact the larger whole. Each has access to the resources he or she needs to be effective. And the assumption is that each will be supported in the decisions they make.
Empowerment is a process of becoming, not a task or end result in and of itself, just as with continuous improvement, no organization is ever done with its empowerment implementation; no person is ever "completely empowered". Empowerment becomes part of the culture of the organization. Empowering others becomes a transparent act, nobody within the organization notices when an act of empowerment is exercised. It may be noticeable in the extreme to outsiders, but, if the implementation effort has been successful, it will be second nature to those acculturated within the organization.
Empowerment requires the effective bosses worldwide to be coaches, advisers, sponsors, or facilitators.'' Good managers and good coaches'' are expected to help employees refine their job achievements by encouraging, instructing, guiding and giving them advice. The power that managers have - the capacity that managers have to influence the behavior of employees - and work
responsibilities, must be now shared with employees through the creation of trust, assurance, motivation, and support. Work-related decisions and full control of the work is being pushed down towards the lowest operating levels. The concept of Self-conducted teams has also emerged, which are groups of empowered employees with no or very little supervision. These groups are able to solve work problems, make choices on schedules and operations, learn to do other employees' jobs, and are also held accountable and responsible for the quality of their outputs. Dr. W. Edward Deming, a statistician, quality expert and one of the leaders in the fight for quality, pointed out that to improve quality, the production processes were to be controlled as they were happening instead of corrected later. He then concluded that the best people to perform such control were the workers themselves. The only problem was that the average workers did not have freedom or necessary skills to do so. Rarely a problem turns out to be the employee's fault. The causes can normally be tracked back to incorrect product or system designs, or even to inappropriate training received by the employees
The Different Systems of Staff Empowerment
Making the Employees More Responsible One of the first aspects noted in a number of organizations was the inactive or negligible nature of employee involvement in the actual nature of the work. This non-involvement on the part of the management and senior managers not only resulted in the increased feelings of frustrations, but also lead to the rise in the stress levels of the employees, as well as lack of productivity for the respective organization. In allowing the employees to 'own' the problem or operation at hand, the employees were duly encouraged to not only identify the problem, but also come M.P. Birla Institute of Management
forward and provide his or her 'own' solution to the same problem, or set of problems. Indeed, the initiative of 'owning' on the part of the employees lead to a positive working environment, as well as the same provided for nurturing, creation, and maintenance of a cohesive working environment. The same also lead to the reduction of the otherwise 'job-induced' stress factor which was observed amongst employees, when the same employees were restricted from directly participating in the work at hand.
Teamwork Another important method for employee empowerment is the emphasis on teamwork. Since, this initiative also emerges on the part of the management, it is imperative that irrespective of the structure and technology of the organization, emphasis on teamwork more often leads to enhanced performance as well as an increase in the quality of the output or work of the respective organization.
A prime example of utilizing and effectively using the method of teamwork is through a workshop duly created for the purpose of enhancing skills of the employees, creating a spirit of team building, showing how to address conflict management, teaching problem solving skills, and enhancing quality
management techniques. Other benefits that accrue through teamwork include a better understanding of the different leadership styles, as well as facilitating and empowering employees.
These are aside from the commonly observed factors of enhanced cooperation, collaboration and cohesion amongst the employees within the organization.
Communications as a means of enhancing Staff Empowerment
Communication being one of the most vital and important methods of any M.P. Birla Institute of Management
relationship, let alone that within an organization has been observed to lead to a truly cohesive and effective means of accomplishing the goals of any organization. One of the prime examples practiced by a number of organizations includes a morning chat, before commencing actual work. This morning exchange of ideas, experiences, and suggestions not only give impetus to the overall objectives of the organization, they also provide a sense of motivation and empowerment for the numerous tasks and activities that will face the employees during the course of the long working day ahead of them.
Though the duration of this morning exchange of ideas and sharing of information may not exceed 15 t0 30 minutes, yet the same little time together provides a sense of responsibility amongst the team members and leads each member of the team to bring out new ideas that may assist other team members in the course of their day's normal routine work. The morning session also allows employees to reinforce grounds rules that have already been established by the organization, as well as lead to a truly satisfying and enjoyable working environment.
Leadership
Yet another vitally important method of enhancing employee empowerment is that of enhancing the leadership skills amongst the employees. It is normally said that good leadership qualities are very similar to good parenting. The object is thus to create an environment where employees not only enjoy to utilize their own strengths, but as members of a team also ensure that they become effective and contributing members of the respective organization.
The above briefly described methods of enhancing employee empowerment provide for a truly functioning workplace that is run by empowered staff, who in utilizes some of the most effective and client/customer focused system in M.P. Birla Institute of Management
enhancing the productivity of the organization, as well as well as their own human potential. Quality Circles It is another important method of employee empowerment. A Quality Circle (QC) consists of 7 to 10 people from the same work area who meet regularly to define, analyze and solve quality related problems in their area. Membership is strictly voluntary and regular meetings are held (usually once in a week or so). They use techniques like brainstorming, Pareto analysis, cause-and-effect analysis, histograms etc. to solve quality related problems. Started first in Japan in the early 1960s, QCs have spread all over the world. They are credited with producing quick and impressive results when implemented correctly. Their advantages include the following: Employees are involved in decision-making. This privilege helps them to acquire communication and analytical skills and improve their efficiency at the workplace. Savings-to-cost ratios are generally higher. Circle members enhance their chances of promotion to higher positions.
Total Quality Management
Empowerment can also be brought about through TQM. TQM refers to the deep commitment of an organization towards quality. Every step in the companys processes is subjected to intense and regular scrutiny for ways to improve it. Almost every issue is subject to exploration and the process is a continuing one. Employees are provided with extensive training in problem-solving, groupdecision-making and statistical methods. The principles of TQM are: Meet the customers requirement on time, the first time, and 100% of the time. Strive to do error-free work. M.P. Birla Institute of Management
Manage by prevention, not by correction. Measure the cost of quality.
TQM is classified as a participative method because every employee in the organization is involved and expected to take responsibility for improving quality. It is a formal programme, which involves direct participation by all employees. Delegation Delegation is more commonly used in organizations. Delegation can be seen as the free will of handing out work for others to complete. This isn't completely accurate: for example, sometimes delegation of a task for which one is responsible is needed so that he/she can concentrate on something that he/she considers more important.
Delegation sounds easy and is something that can be done all day long. To those people who are experienced, this may be true, otherwise its complete nonsense. Delegation requires skill, patience, confidence and courage.
Benefits of Delegation Successful delegation occurs when an employee is purposely chosen to do a specific task. This employee has been specifically chosen because it is believed that they have the ability to complete the task in question.
Therefore the responsibility to complete the task is given to that person.
As stated in the above section, delegating work can allow one to concentrate on things that he/she believes require ones personal knowledge/skill. Other tasks that are delegated since it is believed that the staff have the necessary knowledge/skill to complete them.
Delegating tasks can be seen as a form of appraisal by the employee(s) that have been chosen. By delegating tasks, they are given an increase in
responsibility (a prime motivator) and consequently they may feel more inspired to complete the task.
If the rate at which employees proceed (promotion, etc) through the business is important, then it will be felt that delegated tasks are extremely worthwhile. By delegating, one will have increased their responsibility and capabilities which will further add to their knowledge/skill. This will then put them in a position to meet the requirements of moving up to the next level.
Adding further to that above, if delegation of a task has given the employee a new level of knowledge/skill, then the resources will be expanded. Should a similar task come up in the future, it is more than likely that the right staff is available to delegate the task.
There may come a time when it is felt that it is needed to prepare for the future (by delegating) rather than personally dealing with tasks in the present. Delegating tasks will then mean that there is more time to plan the future and to remain competitive. This is an important part of a managerial role
Self directed teams Also known as Empowered Teams, they are also a system of employee empowerment. A self-directed work team is an intact group of employees who are responsible for a whole work process or a segment that delivers a product or service to an internal or external customer. To varying degrees, team members work together to improve their operations, handle day-to-day problems, and plan and control their work. They are composed of committed individuals who trust each other; have a clear sense of purpose about their work; are effective communicators within and outside the team; make sure that everyone in the M.P. Birla Institute of Management
team is involved in the decisions affecting the groups; and follow a process that helps them plan, make decisions and ensure the quality of their work. Self- directed teams have the following distinct features They are empowered to share various management and leadership functions. They plan, control and improve their own processes. They set their own goals and inspect their own work. They often create their own schedules and review their performance as a group. They may prepare their own budgets and co-ordinate their work with other departments. They are frequently responsible for acquiring new training they might need. They may hire their own replacement or assume responsibility for disciplining their own members. They and not others outside the team take responsibility for the quality of their products and services.
Objections Overcome
Management's fear of letting employees make decisions, which can impact the profitability of the company, is a major factor in the ineffectiveness of many empowerment programs, and yet is still a major objection.
One might wonder why more organizations do not adopt such empowering strategies. There are standard answers: that giving up control is threatening to people who have fought for every shred of it; that people do not want to share M.P. Birla Institute of Management
power with those they look down on; that managers fear losing their own place and special privileges in the system and so forth. This objection can be overcome if the managers in question can be assured that the employees are ready for the level of authority being placed with them.
The apprenticeship model emphasizes the growth and training of the employee into readiness to be empowered. Only when employees are trained in the ramifications of their actions and are able to see the big picture should they be allowed and encouraged to make decisions. The role of the supervisor is as mentor and coach. The worker must be given the opportunity to make decisions about less significant things and then the outcomes of these decisions reviewed so that learning can occur.
Just as we would not expect a person with an associate's degree to articulate ground-breaking new theories in their field; so too we should not expect untrained employees to make decisions which affect the bottom line. The manager who has been involved in the training of the worker will have greater confidence that the worker will make a decision that is in the best interests of the company. The benefit of empowerment is that it allows each employee to bring his or her experience and creativity to bear on the decision.
Middle managers often object to employee empowerment because they perceive that the effort will take power away from them. Their view is that managers must give up the levers of control they've worked a lifetime to get hold of. This can be called the "hazing theory of management". One of the reasons initiation activities and hazing are still a part of many fraternal organizations is that the current members want the opportunity to do onto others as was done onto them. If, as a pledging member, they had to run errands for the brothers then they want the opportunity to have pledges run errands for them once they become brothers. Running errands are the "dues" pledges must pay in order to join the brotherhood. Working for the organization for years and being subjected to the
decisions of others are the "dues" middle managers have paid to obtain their positions. This type of thinking is called zero sum change. That is, in order for the worker to gain something the manager must lose an equivalent amount of that thing, in other words, win-lose thinking. In order for an employee empowerment
implementation to be successful, managers with this objection must change their attitude. These managers might ask, "How can I give up control when I am accountable for the results? How can I give greater decision-making authority to employees, yet ensure the results are of good quality and are consistent with corporate objectives? employees feel How can I manage the empowerment process so the project is their own?"
The answer to these questions, and the way this needed change is accomplished through training. Managers must see that they still have a role despite authority being shared with empowered employees. This new role is as mentor, coach, and facilitator. Training should be provided for each aspect of this role. Acting as mentor comes easily to some people; however others have difficulty seeing themselves as able to offer anything beyond direction. Proper training can show the reluctant mentor how to improve his or her skills. Coaching is another skill some people have difficulty with. Again, training is called for in this instance. Because empowered employees often are formed into self-managing teams they often need someone to facilitate their discussions until this skill is developed among the members of the group, this initially becomes the role of the manager. Later on, as cross-functional teams are formed, the manager's facilitation skills are called for again. Many managers will require training to enhance their ability to facilitate discussions.
Managers who take on these new roles of mentor, coach, and facilitator begin to recognize that they are still needed. A new win-win attitude replaces the old winlose attitude in those managers who are successful at implementation of empowerment. As the benefits of empowering employees become apparent, the
properly trained manager will become a strong proponent of empowerment, he or she will recognize the value inherent in taking advantage of everyone's experience and creativity. If one accepts the premise that empowered
employees are more satisfied with their jobs, and the premise that satisfied employees result in satisfied customers, then logic dictates that managers will seek empowerment opportunities in an effort to grow the business and increase revenues.
Other objections which are raised by management as a result of these proposed changes, "a greater investment in selection and training, higher labor costs, slower or inconsistent service delivery, violations of 'fair play', giveaways and bad decisions". Still other management objections noted are "Specifically,
empowerment might lead to overconfidence and, in turn, misjudgments on the part of subordinates." These objections are valid in some respects; proper training will overcome some of them, but not all. However the benefits of employee empowerment outweigh the detriments.
Employees too, sometimes object to empowerment efforts. One of the complaints by employees is the responsibility the group has for each individual, "with everyone watching everyone else, it can feel like having a hundred bosses" Another common employee objection is that they don't want any more responsibility than they already have. An employee with this complaint is already not sufficiently motivated, and some management response is called for. Perhaps she or he is not aware of the benefits, which accrue to the organization because of her or his work. Perhaps the employee lacks the understanding that purposeful work is often less demanding than what she or he may already be doing. Perhaps there are difficulties in other aspects of that employee's life, which could benefit from timely intervention by a caring supervisor. In any case, it is likely that this objection can be overcome.
Also major organizational changes can seriously challenge employees' sense of control and competence as they deal with the uncertainty of change and accept new responsibilities, skills, and guidelines for action and behavior. It is the responsibility of the leader to provide the vision, which assists employees to have this peace of mind.
The critiques of employee empowerment emanate from what appears to be halfhearted attempts by employers that allow for a very limited degree of decision making and control by employees. Therefore it is the prime responsibility of the management to address these issues while implementing empowerment systems
The Empowerment Environment

A Culture of Empowerment An organization's culture is a complex thing, not easily described. Yet it is upon this foundation that empowerment is built. The organizations that successfully implement employee empowerment will have certain values at their core from which the process of empowerment can flow. Among these values are respect and appreciation for individuals and the value they bring to the organization. Values alone do not make up an organization's culture, and respect for individuals is only one of the outward signs of an empowered culture. Edgar Schein defines organizational culture as, a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration - that has worked well M.P. Birla Institute of Management
enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.
The culture of the organization must support the thrust of empowerment if there is any chance for success. Organizational values compel and propel behavior significant cultural artifacts that will lead to empowerment.
Organizational structure, reward systems, mission, goals, objectives all play a vital role in empowerment. Organizational structure and reward systems are often put into place with the unknowing and unquestioned basic assumptions, which are part of the culture of the organization.
An organization seeking to implement empowerment is likely to examine its structure and reward systems, however if the culture is not also examined by the change agents, replacement structures and systems are likely to reflect the old assumptions. One such assumption is whether individuals or groups (teams) should be rewarded for their efforts. Many organizations in the United States hold that country's value of individualism. If, on the one hand, teams are being promoted as a tool of empowerment, and on the other hand, individuals are being rewarded for the work of the team, then employees will unconsciously or consciously pick-up on the cultural norm and will be reluctant to dedicate themselves to the teaming concept where their work may not be recognized and rewarded. In other words, empowered organizations put their money where their mouth is.
Managers who understand how empowerment integrates with organizational culture are motivated to lead employees and help them internalize the values and traditions of empowerment. These managers help create a work environment where employees take action for intrinsic reasons more so than for extrinsic reasons.
Shipper and Manz, in their description of W. L. Gore and Associates, demonstrate how committed to empowerment that company is by describing the cultural manifestations. Some examples include: there are no position titles, all employees are called Associates; every associate has one or more sponsors who provide training, act as coach or mentor, and advocate with the compensation committee for the employee's pay increases; all associates are encouraged to apply their creativity, even to the extent of finding their own job within the organization after being hired. While these tactics far surpass what another organization interested in empowering its employees is likely to do, they do reflect what has been successful for Gore.
It is clear that the organization's culture is important to employee empowerment. If an organization's culture does not already support empowerment it must be changed. But how could the culture be changed if it is decided to do so? Leaders create culture, but cultures, in turn, create their next generation of leaders. If the leader is acting in a growing organization, he or she needs both vision and the ability to articulate it and enforce it. If an organization is to change its culture, it must be led by someone who can, in effect, break the tyranny of the old culture. This is accomplished through replacement of assumptions. If an assumption is to be given up, it must be replaced or redefined in another form, and it is the burden of leadership to make that happen.
The Role of Management In an empowered organization the managers and supervisors take on a different role than they usually would in most organizations. It may be obvious that one aspect of this role change is the sharing of power and authority. Yet, many managers and supervisors already do this, either actively or passively, through delegation or abdication, neither of which is empowering people.
Empowerment implies a great deal more. There is an active role for managers and supervisors rather than the passive one of abdication. There are stages an employee must go through before he or she should have authority delegated to him or her. There should also be a recognition that while the employee may be ready to have one aspect of the job delegated to her or him, she or he may not be ready for delegation in other functional aspects of the job Managers and supervisors must reframe their perception of their roles because the primary task of supervision is to help people.
So what are these new, active roles for managers? Firstly it must be noted that, managers and supervisors need to be empowered, too. One use of manager's new found empowerment should be to allow them to remove barriers to employee empowerment. This can be described as, "providing autonomy from bureaucratic constraint" "imagine that your job is to create an environment where your people take on the responsibility to work productively in self-managed, selfstarting teams that identify and solve complex problems on their own. This involves articulating a vision, values, strategies and goals; aligning policies, practices and business plans; improving processes; organizing, communicating and 'walking the talk' of total quality and removing barriers that prevent outstanding performance. Managers need to be willing and capable of changing their roles from supervisors and work directors to visionaries and coaches.
This new role of coach is also nearly universal in the literature. Coaching is defined as, teaching and practice focused on taking action, with celebration when things go well and supportive redirection when things go wrong, while all the time creating excitement and challenge for those being coached. The objective of coaching is to keep giving employees responsibilities, which move them along the capability continuum, eventually reaching 'fully capable of the task'. Naturally, the manager must be careful to keep adjusting his or her leadership style as the employee becomes more capable. Managers also have to learn how to nurture and reward good ideas. These coaching, or, empowerment strategies
are aimed not only at removing some of the external conditions responsible for powerlessness, but also at providing subordinates with self-efficacy information. Among the coaching strategies noted are, Expressing confidence in subordinates accompanied by high performance expectations. Fostering opportunities for subordinates to participate in decision making. Providing autonomy from bureaucratic constraint. Setting inspirational and/or meaningful goals
Events such as, "inputs from supervisors, staff peers, and subordinates, for example, performance evaluations, charismatic appeals, training sessions, mentoring advice, and general discussions of ongoing projects provides data on which to base task assessments. Task assessments are those perceptions by the employee of his or her ability to perform, or interest in, the task. That is, management can change the environment to make completion of the tasks rewarding intrinsically for example, through praise and recognition or increased opportunities, or management can work as a mentor to help the employee perceive his or her contribution as valuable.
This mentoring approach for employees helps them internalize the values and traditions of the organization. These managers help create a work environment where employees take action for intrinsic reasons more so than for extrinsic reasons.
If a manager does not perceive her or his role is to help those she or he supervises to grow, then any empowerment implementation effort will not be successful. A change in role perception is called for in this instance when implementing employee empowerment. The supervisor must see potential in the employee and work to bring that potential out. The process is best described as mentoring or coaching and it entails
Determining the skill level of the employee. Sharing information about the goal to be achieved and why it is important to the organization as a whole. Providing for employee training as needed. Depending upon the employee's skill level, providing appropriate supervisory support. A directing style for those tasks for which the employee has a low skill level. Coaching for those tasks with which the employee has some skills but is lacking experience or motivation. A supporting style for those tasks where the employee knows what to do but is still lacking confidence in their abilities.
A delegating style for those tasks where the employee is motivated and fully capable. Ensuring that the employee is consistently growing in skill by providing new responsibilities for which a higher level of supervision is needed. Mentoring the employee such that they absorb both the organizational culture and the value of empowerment. Removing barriers to empowerment present in the organizational structure. Ensuring that appropriate resources are available for the employee, or ensuring that the employee has the appropriate skills to obtain needed resources. Providing support for the continued empowerment of the employee. Sharing information about the employee's and the organization's effectiveness. Information Sharing Information is what the organizational culture is made of initially. Information is the gatekeeper to power. There is a need for increased information sharing in implementation of empowerment. M.P. Birla Institute of Management People without information cannot act
responsibly. If information shared is zero, nothing happens to redistribute it, and empowerment will be zero. Communication and information are the lifeblood of empowerment. In the absence of information employees do not know the ramifications of their actions and therefore are not responsible.
Most supervisors think part of their role is to shield their subordinates from bad news coming from above. When subordinates are shielded the management is acting as their parents and treating them like children. If the management is trying to create the mind-set that everyone is responsible for the success of the business, then people need complete information. An important part of employee empowerment is demonstrating confidence in the worker, yet many managers hesitate to just let people go on their own. This may be a call for some limitations in the form of shared information.
The second key is to create autonomy through boundaries. When employees understand the boundaries they are then free to take any action within those boundaries; they can bring their own creativity to bear on the task at hand and perhaps improve its effectiveness. While the employees have autonomy, they are aware of the boundaries of their decision-making discretion. Setting clear boundaries tells people what they're authorized to do. In case of W. L. Gore and Associates note one of the four principles all employees are expected to abide by is, "Consult with other Associates prior to any action that may adversely affect the reputation or financial stability of the company associates can and are encouraged to make decisions on their own as long as the downside risk does not threaten the organization's survival. Creating boundaries avoids one of the objections noted in the section above, that is, that employees will become overconfident and exceed their authority.
Sharing information about goals and effective communication about the organization's plans, successes, and failures may seem commonplace; however its importance cannot be undervalued. Research has revealed that people who
have information about current performance levels will set challenging goals and when they achieve those goals they will reset the goals at a higher level.
One of the skills of this new role is sharing feedback about the employee's effectiveness. Empowerment programs fail because HR initiates the process the wrong way. Empowerment is developed by creating an empowering environment one in which employees are given goals, information, feedback, training, and perhaps most importantly, positive reinforcement. The employment of these strategies is aimed not only at removing some of the external conditions responsible for powerlessness, but also at providing subordinates with selfefficacy information. Without this positive reinforcement employees do not easily come to realize how skilled they really are and how important their work is to the success of the organization. The importance of performance management systems that provide a clear understanding of job responsibilities and methods for measuring success is fundamental to reinforcing a sense of competence and believing that one is a valued part of an organization. To make employee empowerment work, not only the information about their own work is to be given them but also the information about the business and demonstrate how their work fits in. Everyone wants to feel they do something of value. When the value individuals bring to the business is demonstrated, people want to grow. Empowerment must be placed in a context of responsibility to the larger whole. Managers must help employees understand that their work is directly aligned with strategic goals and individual accountability is maintained all the way along the line to senior management, customers and stockholders and that they are considered, partners in the business, all with an eye to the bottom-line implications. Empowered employees will only understand these bottom line implications if organizational information is shared with them.
The Value of Vision The value of providing a compelling vision of an empowered workplace should not be underestimated. Because empowerment is often poorly understood, and usually has not been experienced by employees, it is the vision of what is possible that brings their commitment to it. Vision is perhaps the most visible component of organizational culture; it is through the vision of what is possible that leaders can inspire employees to apply their skills, knowledge, and creativity towards its achievement. Whatever the mind of man can conceive, and believe, it can achieve.
Charismatic leaders understand the power of vision. The most important motivational aspect of charismatic/transformational leadership is the heightened intrinsic value of goal accomplishment produced by the articulation of a meaningful vision or mission.
Vision provides employees with that sense of "what do we do next" which can inspire creativity; this can also be described as awareness of the context. It also allows for employees to not make decisions, which are in the direction opposite that of which the leaders of the organization believe is right. There needs to be a shared vision lacking buy in to such visions, employees can hardly be expected to be self-directing in their fulfillment. The first lever of organizational characteristics which facilitate employee empowerment is a clear vision and challenge.
The term "values" can also be used in place of vision. Values guide all plans, decisions and actions. There is a clear distinction between goals and values Goals are for the future. Values are now. Goals are set. Values are lived. Goals change. Values are rocks you can count on. Goals get people going. Values sustain the effort.
The vision is articulated through the basic values of the organization. At W. L. Gore these basic values are, 1. Try to be fair. 2. Use your freedom to grow. 3. Make your own commitments, and keep them. 4. Consult with other Associates prior to any action that may adversely affect the reputation or financial stability of the company.
Within these values is the vision of a growing, profitable concern, which has instilled employee empowerment to its core.
Next is the question of what vision to instill. There are many appealing visions such as the provision of excellent customer service, that are the precursors of profit, productivity and market share growth; but they must be articulated as such for them to be compelling. In short, employees must understand and share the vision of the organization if they are to be empowered.
Developing Competency In order to implement employee empowerment the employees must be competent. Competency goes beyond developing job-task specific knowledge. Employees must be properly trained. It does not make sense to empower employees to do things such as make decisions or approve or initiate action if they are not properly trained. Once employees understand what needs to be done to improve the company, they must have all the skills and resources necessary to be able to accomplish those improvements. Spreading power means educating people to this new definition of it. Empowerment training is more than remedial; it prepares people for collaboration and higher-level performance, and sends a message to employees: we're spending money on you because this is important to the organization's future. Empowerment can be defined as as employees having M.P. Birla Institute of Management
autonomous decision-making capabilities and acting as partners in the business, all with an eye to the bottom-line implications. The employees get those decisionmaking capabilities and information about bottom line implications through training only.
Training does not come cheaply. Not only must empowered organizations invest in training materials and facilitators, they must value training sufficiently to release employees from regular work duties to attend. It is a common experience for organizations that seek to empower employees to find that their training and development budgets are woefully under funded. However, it is not only the responsibility of the training department and supervisors to provide training. There must be procedures and occasions for empowered individuals and teams to learn from each other. In an empowered environment more experienced employees tend to take a more active role in intervening in the actions of newer employees and offering feedback regarding culture-consistent behaviors. In short, these newly empowered participants empowered their associates through their actions. They share success stories and help one another diagnose situations to develop appropriate coping strategies.
Importance of Resources In many organizations access to resources is controlled by supervisory staff. If employee empowerment is to be implemented successfully, those controls must be removed and resources placed under empowered employees control. Resources include items such as funding, access to support staff, or experts who have knowledge on which the employee can draw. Typically restriction of access to resources is in place to avoid employee abuse. However, if information about the costs and effect on the bottom line procurement of resources has is shared with employees they are not likely to abuse them. Once both employees and
managers have received proper training, the next step is to give employees control of the resources needed to make improvements. Nothing is more demotivating or disempowering than being stopped in your tracks because you either don't know how to proceed or lack the tools necessary to do a good job.
Relying on people to provide service improvements without resources is called the human resources trap. The HR trap occurs when managers expect their front-line people to provide better and better service without simultaneously trying to improve the core service offering itself, enhance the tangibles, make available state-of-the-art technology and market research, and so on. It can result in unreasonable responsibility for damage control placed on the front-line workers in a poorly designed, inadequately coordinated service system. Release of
control to employees demonstrates management trust and confidence in their competence. This is very empowering. Sufficient Support The organization, which chooses to implement empowerment, must ensure that sufficient support is available to keep it going. In other words, the environment must be a supportive one.
Support can take the form of workplace social supports. Managers who make transformational organizational change usually have significantly higher social support scores. In other words, the more support the managers have the more effectively empowered they are. Empowerment techniques and strategies that provide emotional support for subordinates and that create a supportive and trusting group atmosphere can be more effective in strengthening self-efficacy beliefs. Also, "inputs from supervisors, staff peers, and subordinates, mentoring advice, and general discussions of ongoing projects provides data on which to base task assessments. The task assessments are the employee's perception of his or her abilities and motivation and are the basis for intrinsic motivation. So M.P. Birla Institute of Management
we can conclude that with a good support system in place the likelihood of employees developing intrinsic motivation and a sense of self-efficacy is increased, thereby increasing empowerment.
Support can also take the form of recognizing and rewarding improvement efforts and success. Reward and recognition systems build pride and selfesteem. Congratulations are affirmations that who people are and what they do matter, and that they are making a valuable contribution toward achieving the shared mission. Spontaneous, Individual, Specific, and unique congratulations are most effective. Celebration and recognition for forward motion and accomplishment are needed.
Shipper and Manz (1992) discuss the powerful and general support, which is provided to associates at W. L. Gore:
Every associate has one or more sponsors who provide training, act as coach or mentor, and advocate with the compensation committee for the employee's pay increases. The sponsor tracks the new associate's progress, providing help and encouragement. A sponsor is a friend and an Associate. All the aspects of the friendship are also present.
Managers need to have faith in employees. Risks can be minimized through training and shared vision, values and benefits, but the empowered organization requires confident managers who have faith in employees. The overall culture of the organization must support risk taking.
The Apprenticeship Model of Empowerment

Apprenticeship, as commonly practiced, consists of three levels of competency and an associated level of empowerment. Employees do the work and make the decisions for which they have sufficient skills and knowledge. Employees and their employer also recognize their responsibility to continue the training and development of the employee. Because the empowerment concept calls for recognition of the value of every employee no employee is looked down upon based upon his or her job responsibilities or level of skill.
Apprentice level Rather than as a lowly, know-nothing, the apprentice is viewed as an unskilled worker with potential. He or she may be assigned tasks which are seemingly menial yet are essential to the effective working of the shop. The apprentice is expected to be aware of how the organization works and to ask questions at appropriate times. Also he or she is expected to be eager to learn new skills and to practice these skills under the guidance of journeymen and masters.
Journeyperson level Journeypersons do the primary work of the organization. In order to be considered a journeyperson an individual is expected to have all but the most specialized skills of their craft. She or he must be able to work without supervision. There must also be recognition of one's responsibility to provide skills training for apprentices. Journeypersons know how to get the answers to their questions, and are developing the sense of what are the right questions to ask.
Master level Masters provide the overall direction and vision for the organization. They decide which jobs to do and how they can be done. Masters understand their
responsibility to supervise the continued development of journeypersons so as to teach and develop the next generation of leaders. As part of sharing their vision, masters provide information about the overall organization to both
journeypersons and apprentices.
As befitting their advanced knowledge,
masters advance the trade through innovation and complete the work for which only they are trained.
This model is deceptively simple. Anyone can quickly grasp the three levels and place workers they know into one of the three categories. However, the model calls for a recognition that an individual could be at any one of the three levels for different aspects of their job.
The Empowerment Development Process

The empowerment process can be characterized by three stages. Each stage represents an increase in employee control.
Stage 1: For people or teams new to empowerment, their circle of control and
influence will be relatively small. In general, activities at this level include: Some control and minor decisions Problem solving Consultation on some decisions made in the department
Stage 2: As employee skills, abilities and acceptance of empowerment

increase, so does the scope of empowerment. In general, activities at this level include: Significant control and more decision making Problem solving Consulted on most decisions made in the department
Stage 3: As a work team matures and performs consistently, significant ownership of the department is taken. The scope of empowerment is at its highest. In general, activities at this level include: Major control over work. Significant problem solving. Makes most decision in the department.
Situational Leadership
Situational Leadership seeks to identify the employee's knowledge, skills, and motivation level for each set of tasks he or she performs on the job. The manager/leader then provides the correct combination of direction and motivation to respond to the employee's needs: Directing (or telling) is the leader's response to an employee who has little or no skills or knowledge of the task and is highly motivated. The employee's motivation will not be significantly impacted by the lack of input they have because they are still learning the ropes. Coaching (or selling) is the leader's response to an employee who still lacks skills or knowledge and yet has lost some motivation. This
technique seeks input from the employee as a motivator, yet still provides the opportunity for the manager/leader to provide needed direction and to increase the employee's knowledge. Supporting is the appropriate leader response to an employee who has developed knowledge and skills, yet is still experiencing motivation problems. The manager/leader seeks opportunities to praise the good work effort of the employee and provide positive feedback as a motivator.
Delegating is the highest step in this hierarchy; the highly skilled employee who provides their own motivation is appropriately supervised through delegation. It becomes the employee's responsibility to seek out the manager/leader when problems are encountered
Benefits when it is correctly implemented

Employee empowerment can be a powerful tool. This new form of administration challenges the hierarchical forms of leadership where the final authority was at the top of the tower watching the working mass. The now advanced leadership style can increase efficiency and effectiveness inside an organization. It increases productivity and reduces overhead. Overhead expenses are those needed for carrying on a business, i.e. salaries, rent, heat and advertising. It gives managers the freedom to dedicate their time to more important matters. Managers can highlight the talents and efforts of all employees. The leader and organization take advantage of the shared knowledge of workers. Managers at the same time develop their own job qualifications and skills attaining personal advancements. Empowered employees can make decisions and suggestions that will down the line improve service and support, saving money, time and disputes between companies and their customers. Empowerment of qualified employees will provide exceptional customer service in several competitive markets; therefore it will improve profits through repeated business. Customers prefer to deal with employees that have the power to manage arrangements and objections by themselves, without having to frequently inquire of their supervisors. Customers want their needs met without having to pass through layers of approvals, referrals or excuses, they want on-the-spot decisions; they want to hear what can be done instead of what cannot. Empowerment is a strong tool that will increase revenue and improve the bottom line. The U.S. Labor Department stated that empowered employees are more M.P. Birla Institute of Management
likely to produce higher profits for their organizations than non-empowered ones. Empowerment is also the best way to promote a good long-lasting employeecustomer relationship. Empowerment also brings benefits to employees. It makes them feel better about their inputs to the company; it promotes a greater productivity, and provides them with a sense of personal and professional balance. It exercises employees' minds to find alternative and better ways to execute their jobs, and it increases their potential for promotions and job satisfaction. It results in personal growth since the whole process enlarges their feelings of confidence and control in themselves and their companies. It is a process that makes workers utilize their full potentials. This enables them to stay behind their decisions, assume risks, participate and take actions. It is a win-win-win situation: customers benefit from sharp employees; organizations benefit from satisfied customers and sharp employees; and employees benefit from improving their confidence and selfesteems.
When Employee Empowerment does not work?

Empowerment must be carefully planned and implemented so as not to lose its focus of value creation for the customer. It can be a victim of the very problems that made it desirable in the beginning. Some of the internal and external threats encountered to a successful achievement of empowerment are briefly described below: Internal threats due to inadequate assumptions, knowledge and attitudes Conflicts may emerge between employees and managers when defining power. The decision-making authority expected by employees might not be the same one the managers are willing to accept. Employees could stop the efforts, lose interest and become cynical.
Managers might not be willing to give up the necessary power. They can oppose empowerment because they can see it as a loss of authority and less job satisfaction.
Employees might resist empowerment. Some may not be comfortable with taking new responsibilities. They prefer to depend on the decisions of others. They might refuse to get with the program.
Managers might assume that employees already have the required skills to start a good empowerment program. To fully train employees to be able to make their own decisions could be time consuming and expensive, which could be considered large barriers to fast success.
Impatience will also not help. The efforts could take long to show results and could burn up important resources.
External threats due to unexpected circumstances Reductions in the workforce: Sometimes economic and competitive
environments call for a labor force cutback. This could then be used as an excuse not to implement empowerment. Changing senior management: Empowerment efforts could be injured if any new senior manager is about to take office. Even though everything might be running smoothly, new senior leaders have a tendency to move things around. Mergers and acquisitions: These types of company ``mixtures'' can always threat empowerment. Both organizations will not always come to the integration process with the same degrees of programs implemented. A lot of changes can take place to make a uniform empowerment process.
REVIEW OF LITERATURE
Purpose of Literature Review
The purpose of the literature review is to identify the problem statement, understand the secondary data that has been gathered in the field of study and to make new finding on the problem statement.
Methodology of the review of literature

Different sources used in order to collect the information or data are: Magazines and journals The internet Publications Articles
The articles have been analyzed and used in the research for better understanding of the topic.
Title: Author: Source:
Empowering Employees John Sifonis iQ Magazine, November/December 2002
Article Summary:
It's one thing to say that employees are empowered. It is another to actually empower them to act decisively and make decisions with constant management oversight. Establish guidelines for accountability, responsibility, and authority, and let employees get on with what they were hired to do.
There have probably been more articles written in the past five years about empowerment and empowering employees than one can count. But what is the real story? Is empowering employees a fad or a trend? Is it fact or is it folklore? Webster's Dictionary defines empower as "to give official authority."
Organizations can, and have, interpreted this broad statement in many different ways.
Some organizations really do give their employees the authority to make decisions in real time. An example of this would be giving a customer-service agent at a rental-car company or at a hotel the authority to provide upgrades or discounts to solve customer problems.
Other organizations say the words, but don't act on them. Their empowerment reaches as far as "you are empowered as long as you don't make a decision that isn't covered in the policy manual." Or "before you make the decision, ask me." Or worse, "why did you make that decision? You aren't allowed to make those types of decisions without asking me first."
Do any of these examples sound familiar? This isn't empowerment. It is lip M.P. Birla Institute of Management
service. At its worst, it crosses the fine line between giving direction and meddling.
People inherently do not like to be managed; they prefer to be given guidance and direction, not specific details as to how to do their jobs.
Real empowerment means giving employees the information they need to make decisions about a role, task, project, or activity and the authority to act without having to go to a supervisor or manager. Granted, these decisions must be bounded by parameters to prevent chaos, but the benefits exceed the risks.
Empowerment means establishing guidelines for three important concepts: accountability, responsibility, and authority. It means senior management is responsible for delegating a certain amount of each element to specific roles, tasks, or activities. For example, managers must define the role and responsibility of the job each employee is to perform, spelling out exactly what the employee is and is not responsible for in doing the job. Managers must also define how much leeway an employee has in making financial decisions.
Managers basically provide the guidance for decision making instead of setting up rules for how to make decisions in each specific circumstance. Once this is established, an empowered employee has the latitude to make discretionary decisions in order to do the job or make something happen, be it resolving a customer problem, deciding which option to take on a project, or identifying the best way to accomplish a task.
In today's challenging business environment, empowerment helps free up a lot of senior management's time. Executives can now spend more time running the business and making high-level decisions rather than micromanaging the workforce. Necessary Change M.P. Birla Institute of Management
Organizations must be willing to pay a price for adopting the concept of empowerment, however. They have to change the way they manage and modify the structure of the organization. Empowered organizations tend to be flatter because they don't require the many layers of approval evident in traditional command-and-control structures.
For example, if a car-rental agent is empowered to make a decision in real time say, at 11:00 p.m., when a customer is actually at the counter complaining about the lost reservation or the type of car they were assigned - the agent has the discretion to upgrade the car or to give the customer a discount to compensate for the inconvenience. If the agent weren't empowered, he or she would have to call a supervisor. And if the supervisor couldn't be reached, the agent's standard response would likely be "I'm sorry, but our policy won't allow me to make an exception." The likely result would be a lost customer. The lifetime loss of revenue is significant because it generally costs at least ten times more to capture a new customer than it does to maintain an existing one.
Corporate culture is another important consideration related to empowering employees. The CEO and other members of senior management set the company's culture. Basically, they are the group that sets the stage for ethical governance, which entails the set of rules (at times explicit, but more frequently implicit) that dictate the decision-making behavior of an organization. If senior management instills a culture of acting in the best interests of the customer and the business, this culture will permeate the organization. In this environment, an organization doesn't need a lot of rules, and consequently, it doesn't need layers of management and oversight to ensure that every decision aligns with policies and procedures. This is a radical departure for most companies that are structured on a command-and-control model.
One of the pillars of ethical governance is the belief that people are inherently honest. Organizations normally set rules to deal with the small minority of
employees who take advantage of the system. Basically, 99% of the organization is punished for the 1% that causes the problems. If senior management communicates the ethical governance policy well, the actual task of managing becomes much easier.
Technology and Empowerment
Establishing ethical governance is necessary for an empowered organization. However, it alone isn't sufficient to make an empowered workforce. Organizations also need the infrastructure in place to support communication and collaboration. The combination is what makes empowerment a powerful reality.
Generally speaking, empowerment has a higher likelihood of succeeding if the organization is "wired." That is, if it has an existing infrastructure that enables communication among employees as well as two-way communication between management -especially senior management and employees.
Infrastructure goes beyond the physical technology of wiring and computers. It also includes elements such as e-mail and applicationsfor example, employee intranets, message boards, online chat, virtual workspaces, and
videoconferencingthat allow people to work together or collaborate on a common project regardless of their location.
The infrastructure facilitates organizational communication and is the vehicle by which senior management relays information to employees. It is the vehicle for constantly communicating the ethical governance to the organization and keeping employees informed about what is happening internally. If used properly, it is also the vehicle that employees use to present their ideas and discuss topics that concern them.
In an empowered organization, communication has to move in two directions. If managers only communicate to employees, communication ends up being a high-tech form of lip service. It's important to recognize that with open communications comes open dissent. Everyone should have the right to voice an opinion. And it is management's responsibility to address the relevant questions raised by employees.
The consequences of not maintaining two-way communication can be brutal. For example, one major banking institution elected not to respond to employee comments about a recent merger. As a result, several employees decided to construct their own private Web site to post comments about the organization's management. Lesson learned: Addressing the employee concerns went from an internal matter to a public forum. It is harder to address difficult issues once they are public, and in this situation, they became public on a global scale.
No one is above the law in today's wired environment. If management doesn't openly communicate, employees will react in kind.
Fad or Trend At the end of the day, is empowerment a fad? No, it is a trend. And the trend will gain strength as younger generations move into the workforce. They are more independent, better educated, and comfortable in a wired environment without a lot of supervision.
Is empowerment a good thing? Absolutely. Is it appropriate for every organization? Probably not. Not every organization has the ability to be an empowered organization. Will these organizations still survive? More than likely they will. But will they be as agile as an empowered organization? No. One of the major benefits of empowering employees is that it gives the organization the M.P. Birla Institute of Management
ability to adapt quickly to a changing environment. It is like a battlefield situation. The strategy for the fight may be well thought-out, but the real-time battlefield situation is fluid and requires the ability to adjust the battle plan given the changing circumstances.
Academics and professional managers will argue for years to come about what is and isn't empowerment and whether it works or doesn't. When the dust settles, the concept will be as vital to organizations as the air we breathe. Empowerment is very similar to democracy: The devil is in the details, and it is a messy thing to deal with, but it is still one of the best governance models around.
Title: Bring out the best in employees through empowerment Author: Steven A. Watson
Over the past several decades, the traditional superior-subordinate model for management has given way to more democratic approaches, where decisionmaking is shared. A core concept for most of these new approaches to management is empowerment.
How can new IT managers use employee empowerment to improve team performance and enhance their own success within an organization? Here are a few things to consider when incorporating empowerment into your management strategy.
Defining empowerment
Empowerment has a variety of definitions. It's often described as the process of giving power and control to non-managerial members of an organization. Although this definition has merit, it may not be the most useful way to view the concept.
Empowerment has also been defined as the process of enabling employees to reach their own potential in ways that help the team or organization. This definition focuses less on control and power and more on managing human resources through coordination and facilitation.
The empowerment of employees allows them more control and responsibility over their work. Your role as manager shifts from control to facilitation and coordination of work processes. There is less focus on decision making and more focus on good communications, education and training, and leadership. One of your primary roles becomes to help team members develop the confidence and skills to make good decisions and to maximize their full potential.
It's a process
Employee empowerment is a process and not an event. Tapping into employees' potential should be incorporated into the way things are done within a team. You need to be consistent in providing staff members with opportunities to make decisions and be innovative. Your staff must be willing to accept the responsibility that comes with empowerment. This process requires commitment and patience from both you and your team members.
Teach your team to embrace empowerment

It is a mistake to assume that staff members will naturally understand or accept empowerment. How many times have you heard from team members that something is not their responsibility or that it's not what they were hired to do? In many ways, traditional organizations have encouraged conformity and loyalty from employees at the expense of innovation and flexibility. The clichs "don't rock the boat" and "toe the line" have been a part of many organizational cultures for a long time. A lot of staff members will have to be convinced that your efforts to empower them are sincere and are not a passing fad to be replaced next M.P. Birla Institute of Management
month
with
another
management
approach.
Don't drag team members kicking and screaming into being empowered. Take as long as necessary to create the understanding and trust that will enable staff members to embrace the increase in responsibility and accountability that comes with empowerment.
Learn to share responsibility and success

It is also a mistake to assume that you will naturally understand and accept empowerment. Empowering employees to use their full potential requires a managerial tradeoff. You will have to give up the notion that you can and should fully control the work environment. In return, you will not have to bear all the responsibility and headaches for work team activities; they will be shared with team members.
Examine your own feelings and beliefs about managerial control and how comfortable you are sharing responsibility with team members. You don't have to be totally comfortable with giving up control; just be willing to focus less on control and more on facilitation and coordination Title Author Published on : Roadblocks to Empowerment : John Tschol : Wednesday, 24th August 2005
Empowerment is the most critical element of customer service and yet most businesses do not practice it. Sure, they say their employees are empowered, but they arent and that can wreak havoc on the bottom line. If you want to retain your current customers and attract new customers, you absolutely must empower your employees to take care of them.
So why doesnt every company practice empowerment? Following are six major roadblocks They dont understand it. Many companies think empowerment is giving employees policies and procedures to follow in serving the customer. Real empowerment is giving employees, particularly frontline employees, the authority to do whatever it takes to ensure that a customer is satisfiedand to do it on the spot. They fear it. Management is afraid theyll lose power and control, or have their jobs eliminated, if they allow their employees to make decision that are not controlled by them and their policies. What they dont realize is that when they empower their employees, they will have more time to focus on other issues that will drive the companys business. to empowerment.
Employees also fear empowerment. Making empowered decisions means taking risks. Frontline employees in particular are afraid to make empowered decisions because they think they will be fired or, at the very least, reprimanded if they make a mistake in trying to satisfy the customer. Their thought process is this: There are millions of customers, but I only have one job; why would I risk losing it? You must let your employees know that it is OK to make a mistake in the process of working to win customer satisfaction.
They dont trust employees or customers. Management doesnt trust its employees. They think employees, particularly frontline employees who often are paid minimum wage, are not bright enough to make decisions that will keep the company in the black. They think customers are, for the most part, dishonest and are out to take advantage of the company in any way possible. You must trust your employees to do the right thing, to take
care of your customers and to ensure that those customers will return to you again and again.
They develop rigid policies and procedures. Most companies have developed policies and procedures that are geared to protecting it from ignorant employees and dishonest customers. The problem is that those policies and procedures get in the way of serving the customer and, as a result, have a negative impact on the bottom line. I challenge you to identify and eliminate policies and procedures that make it difficult for customers to do business with you.
They dont train their employees. Training is a key component in the empowerment equation. When employees are trained and empowered to handle customer complaints, they not only will maintain customer loyalty, they will restore it. Too many companies dont train their employees. E Wong, the largest supermarket chain and most successful retailer in Peru, should be a role model for companies throughout the world. It has 8,000 employees, a 68 percent market share, and a continuous training program that includes every employee. How do I know this? Because the company hires me to provide that training.
You must train every employee so they understand that they are in the service business, not the manufacturing or banking business. That is what Southwest Airlines has done, and the result is obvious. The airline has made a profit for 32 consecutive years, even as other airlines are on the brink of bankruptcy. Their vision is shortsighted. Most companies dont realize that the empowered decisions their employees make today will have a long-term impact on the company. A customer on the receiving end of an empowered decision will tell others about the wonderful service she received at your company. That word-of-mouth advertising is priceless and powerful. It can drastically reduce your need to spend millions of
dollars on advertising to get customers through the doors of your business, customers you then drive away with lack of service.
Empowerment is the foundation of customer service. Without it, you have nothing. You must empower your employees. You must support and reinforce their empowered actions. Celebrate them, applaud them, and reward them. Make heroes of your empowered employees. On the other hand, get rid of employees who refuse to make empowered decisions. Help them find jobs with your competitors.
Benefits from the literature review
The literature gives an insight into the importance of the Employee Empowerment system in an organization. It has helped me to formulate the problem statement. It has helped me to formulate the objectives of the study. It has also served as a secondary data.
RESEARCH METHODOLOGY
Hypothesis H0H1Organizations Organizations have have not implemented implemented Employee Employee
empowerment system to a great degree. empowerment system to a great degree. Type of Research The research is primarily quantitative in nature. The study is based on data collected through structured questionnaire from the respondents and interviews conducted with the respondents. Sampling Technique The research technique used is Stratified Random method. Types of Data Data is the fact of an event. Data is the base for every research work. The data is mainly classified into two groups.
1) Primary data: Thrust has been on collection of primary data. Structured questionnaire has been used and discussed personally with the respondents to get their responses.
2) Secondary data: Books, journals, websites etc., have been consulted for obtaining related information, and also for crosschecking of primary data.
Sample size M.P. Birla Institute of Management
The study has covered total of 2 organizations and a total of 100 employees. Research Techniques Structured Questionnaire Personal Interviews Statistical tools used for analysis Percentage Analysis:
Percentage analysis refers to a specific kind of ratio used in making the comparison between two or more series of data. Percentage is used to describe relationship and can also be used to compare the relative terms, the distribution of two or more series in data.
Percentage of respondent = (No. of respondents / Total no. of respondents) * 100
Scope and Limitations of the research
o The study is constrained only to employee empowerment system o The study is limited to the Bangalore city only. o Analysis of primary data is done on the assumption that the answers given by the respondents are true and correct. o Time and Resource constraints.
Profile of the respondents Profile of the respondents has always an influence in the survey that will be conducted. So it is important that proper people are selected for responding the questionnaire. Middle Level Management Age group: 35 40 years
Background: B.E., M.B.A., M Tech. Experience: 10-15 years
Software Engineers Age group: 23 30 years
Background: B.E, B.C.A, M.C.A. Experience: 1-6 years
Experiencewise breakup of the respondents
More than 3 years 36%
0-1 years 24%
1-3 years 40%
Graph 4.1 showing the experience wise breakup of the respondents.
1.
I usually participate in the decision making process of my organization.

Table 5.1
Particulars Agree Can't say Disagree
No. of respondents 58 0 42
Graph 5.1
Question 1
60 50 40 No. of 30 Respondents 20 10 0 Agree Can't say Response Given Disagree 0 58 42
Source: Field Investigation
Interpretation 58% of the respondents say that they usually participate in the decision making process of their organization
2. I am interested in participating in the decision making process of my organization.

Table 5.2
Graph 5.2
Question 2
Disagree Response Given
28
Can't say
Agree
69
10
20
30
40
50
60
70
No. of Respondents
Interpretation It is observed from the chart that 69% of the respondents prefer to participate in the decision making process of their organization
3. I usually consult my boss before taking decisions related to my task.

Table 5.3
Graph 5.3
Question 3
Disagree 42%
Agree 58%
Can't say 0%
Agree
Can't say
Disagree
Interpretation It is observed that 58% of the respondents usually consult their bosses before taking any key decision related to their tasks.
4. I am very closely supervised in my work.

Table 5.4
Graph 5.4
Question 4
45% 54%
1%
Agree
Can't say
Disagree
Interpretation From the above chart it can be inferred that 54% of the respondents have accepted that they are closely supervised in their work. It is also noted that the respondents who have lesser experience levels i.e. less than 2 years of experience are closely supervised in their work whereas the respondents having higher experience levels are not closely supervised.
5. I dont like being closely supervised

Table 5.5
Graph 5.5
Question 5
83
100 80
No. of Respondents
60 40 20 0
Agree Can't say
Response Given
17 1
Disagree
Interpretation It is observed that 83% of the respondents do not like being closely supervised at work.
6. Sufficient amount of job related training is provided to me to enable me to take decisions related to my job.
Table 5.6
Graph 5.6
Question 6
30%
0% 70%
Agree
Can't say
Disagree
Interpretation 70% of the respondents say that sufficient amount of job related training has been provided to them.
7. I am interested in working in a fully empowered self directed team.

Table 5.7
Graph 5.7
Question 7 60 60 50 35 40
No. of 30 Respondents
20 5 10 0
Agree Can't say
Response Given
Disagree
Interpretation It can be noted from the above chart that 60% of the respondents are interested in working in fully empowered teams.
8. Sufficient amount of information sharing is done in the organization to facilitate empowerment.

Table 5.8
Graph 5.8
Question 8
78 80 70 60 50 No. of 40 Respondents 30 20 10 0 Agree Can't say Response Given Disagree 0
22
Interpretation 78% of the respondents surveyed feel that sufficient amount of information shared in their organization to facilitate empowerment while 22% of the respondents do not feel so.
9. I am provided with sufficient feedback of my actions and their consequences.

Table 5.9
Graph 5.9
Question 9 94
100 80 No. of Respondents 60 40 20 0 Agree Can't say Response Given Disagree
Interpretation Almost all the respondents (about 94%) surveyed feel that they are provided with sufficient feedback of their actions and their consequences.
10.
The
organization
culture
supports
risk
taking
and
creativity on the part of the employees.

Table 5.10
Graph 5.10
Question 10
Response Given
Disagree
39
Can't say
Agree
59
10
20
30
40
50
60
70
No. of Respondents
Interpretation According to the chart above 59% of the respondents feel that their organizational culture supports risk taking and creativity on the part of the employees whereas 39% of the employees surveyed do not think so.
11. If my supervisor was away and I need to immediately take a key job related decision for which I usually consulted my boss, I will not hesitate to take the decision by myself.
Table 5.11

Graph 5.11
Question 11
Agree 40% Disagree 55%
Can't say 5%
Interpretation 55% of the employees surveyed do not want to take key decisions related to job all by themselves when their boss is away. 40% of the respondents accept that they take decisions by themselves in such a situation.
12. I am provided with sufficient access to the resources required to carry out my job independently.
Table 5.12
Graph 5.12
Question 12
Disagree 34%
Can't say 4%
Agree 62%
Interpretation 62% of the respondents feel that they are provided with sufficient access to resources within their organisation to carry out their job independently.
13.
Sufficient
encouragement
is
provided
to
excellent
performing employees by giving rewards and recognition.

Table 5.13

Graph 5.13
Question 13
Response Given
Disagree 0
25
Can't say
Agree 0 20
75
40 No. of Respondents
60
80
Interpretation Among the employees surveyed, 75% feel that rewards and recognition are given within their organization to provide sufficient encouragement to the employees.
14. Every employee of my organization knows what exactly the vision of the organization is.
Table 5.14
Graph 5.14
Question 14
6%
22% 72%
Agree
Can't say
Disagree
Interpretation 72% of the employees say that every employee of the organization knows what exactly the vision of the organization is. But 22% of the employees surveyed do not think so.
15.
Any given employee can accurately answer the question How is the organization doing?
Table 5.15
Graph 5.15
Question 15
Disagree 35%
Agree 60% Can't say 5%
Interpretation It can be noted from the above chart that 60% of the respondents think that every employee knows well about their organization and can accurately answer the question How is the organization doing?
16. Employee empowerment motivates the employees to perform better.

Table 5.16
Graph 5.16
Question 16
Response Given
Disagree
23
Can't say
Agree 0 10 20 30
74
40 50 60 70 80
No. of Respondents
Interpretation 74% of the respondents are of the opinion that employee empowerment motivates the employees to perform better in their job
17.
Excellent
customer
service
can
be
provided
by
implementing employee empowerment system within the organization.

Table 5.17
Graph 5.17
Question 17
80 60 No. of 40 Respondents 20 0 Agree Can't say Response Given Disagree 80 2 18
Interpretation It is observed that 80% of the respondents believe that excellent customer service can be provided by implementing employee empowerment system within the organization.
18. Empowerment brings about a sense of responsibility within the team members and helps in bringing out new ideas.
Table 5.18
Graph 5.18
Question 18
80 70 60 50 No. of 40 Respondents 30 20 10 0 Agree Can't say Response Given Disagree
75 3 22
Interpretation 75% of the respondents say that Empowerment brings about a sense of responsibility within the team members and helps in bringing out new ideas.
19. Employee empowerment leads to overconfidence and in turn misjudgment on part of the subordinates.
Table 5.19
Graph 5.1
Question 19
Disagree Response Given
85
Can't say
Agree
14
No. of Respondents
Interpretation It can be observed from the chart that there is a strong consensus among the respondents that Employee empowerment will not lead to overconfidence and in misjudgment on part of the subordinates. About 85% of the respondents believe so.
20.
Managers often object to employee empowerment because they perceive that the effort will take power away from them.
Table 5.20
Graph 5.20
Question 20
50 40 30 No. of Respondents 20 10 0 Agree Can't say Response Given Disagree 47 48 5
Interpretation Opinion of the respondents regarding the above question is divided. 47% of the respondents blame their managers for employee empowerment systems being not properly implemented in their organizations because the managers perceive that the effort will take power away from them. But 48% of the respondents disagree with that.
21.
I have _____ number of mentors in my organization.

Table 5.21
No. of mentors 0 1 2 3
No. of respondents 18 60 22 0
Graph 5.21
Question 21
60 50 40 No. of 30 Respondents 20 10 0 0 1 2 3 No. of Mentors 18 22 0 60
Interpretation 60% of the respondents say that they have one mentor in their organization while 22% of them have 2 mentors.18% of the respondents do not have any mentors in their organization.
Managements view on Empowerment
Majority of the managers interviewed believe that employees should be allowed to participate in the decision making process of the organization. Most of the managers are of the view that inexperienced employees must be closely supervised in their work. But they feel that exceptions should be allowed in case of very bright and talented but inexperienced employees. Managers feel that proper training is a must for employees if an empowerment system is to be implemented. There should be a constant attempt to upgrade the skills and capabilities of the employees. But they are worried about the training costs since proper quality training programmes require huge investments. Some of the managers are hesitant to give up control and are worried that employee empowerment might lead to overconfidence and in turn misjudgment on part of the subordinates. Majority of the managers believe that mentoring approach is best suited to groom employees towards empowerment. Some of the managers do not encourage the employees to take risks as they feel that they will be responsible for any mistakes committed by employees. Most of the managers believe that employee empowerment system if implemented properly would work great for an organization. But they feel that it is very difficult to implement it properly
LIST OF FINDINGS
1. Majority of the employees participate in the decision making process of their organization and most of them are interested in doing so. 2. More than 50% of the respondents are closely supervised in their work meaning that they are less empowered. It has been found out from the survey that usually the lesser-experienced people (1-3 years) are closely supervised whereas employees having experience of more than 3 years are less supervised. 3. Most of the employees dont like being closely supervised in their work. They want to be loosely supervised and thus they are strongly in favor of implementing empowerment in this regard. 4. Sufficient amount of training is provided to the employees in organizations implementing empowerment systems. It has been found that organizations value training highly and sufficient funds are allocated for these training programs. These programs are aimed at continuously building
competencies, skills and capabilities as organizations believe that the first step towards empowerment is having competent employees. 5. Sufficient amount of information sharing is done in organizations implementing empowerment. This means that the organizations
implementing empowerment give importance to information sharing and thereby demonstrate confidence in their employees. It is believed that employees must have sufficient access to information for them to be empowered. 6. Sufficient amount of necessary feedback is provided in organizations to the employees about their actions and consequences. 7. Most of the respondents are in consensus that every employees of the organization knows what exactly the vision of the organization is and how is the organization doing. It can be concluded that organizations have done enough to help employees understand that their work is directly aligned with strategic goals and individual accountability is maintained all the way along M.P. Birla Institute of Management
the line to senior management, customers and stockholders and that they are considered, partners in the business, all with an eye to the bottom-line implications. This type of environment is very much essential for
empowerment system to be successful. 8. Majority of the respondents agree that sufficient encouragement is provided to excellent performing employees by giving rewards and recognition. Rewards, recognition and positive feedback are important elements constituting an empowerment system and their presence implies that the organizations have implemented an effective empowerment system. 9. Most of the respondents accept that they are provided with sufficient access to the resources required to carry out their job independently. Again this implies that the organizations are successful in implementing an effective empowerment system. 10. Another interesting point noted is that a majority of the employees accept that they consult their boss before taking any key decisions related to their job. If the supervisor was away and it was needed to immediately take a key job related decision for which they usually consulted their bosses, they would not take the decision by themselves. Instead they would consult their boss over the phone before taking the decision. It is found that lesser experienced employees (less than 2 years) are the ones who consult their superiors before taking the decision. Employees with higher experience levels are found to take decisions by themselves in such a situation. 11. Majority of the employees surveyed believe that the organization culture supports risk taking and creativity on the part of the employees, which is a clear sign that the organizations have implemented an effective employee empowerment system. 12. A vast majority of the respondents believe that employee empowerment motivates the employees to perform better, excellent customer service can be provided by implementing employee empowerment system within the organization and that empowerment brings about a sense of responsibility within the team members and helps in bringing out new ideas. Majority of
them do not believe that employee empowerment leads to overconfidence and in turn misjudgment on part of the subordinates. From this it can be concluded that most of the employees prefer empowerment and believe that empowerment would do good for an organization. 13. It has also been found out that the majority of the employees in organizations have only one mentor whom the junior employees can look to for advice, training, and cultural clues, which is very much essential in an empowered environment.
CONCLUSION
Employee empowerment system in the corporate context today seems to be highly satisfactory. Most of the employees are satisfied with the existing system. Employee empowerment system is found to be highly significant in the corporate context. The researcher is able to establish link between employee
empowerment system and organizational effectiveness.
Hypothesis testing
H0H1-
Organizations
have
not
implemented
Employee
empowerment system to a great degree. Organizations have implemented Employee system to a great degree. empowerment
The level of significance was calculated based on additional calculations. It is found that
H1 stands ACCEPTED H0 stands REJECTED
RECOMMENDATIONS
For an empowerment programme to succeed, the management pyramid'' must be inverted. Old-fashioned managers must step off their pedestals and for the first time serve their subordinates and give up control. Old-fashioned employees must also agree to changes. They could see empowerment as a threat, especially if they became use to the convenient old style of management structure where the rules and decisions came always from above. Managers are learning to give up control and employees are learning how to be responsible for the actions and decisions. In sum, it is fundamental that management share information, create autonomy and feedback, and train and create self-directed teams for empowerment to work properly. Managers often prefer not to communicate with employees, and not to share some extremely important information with them, but an effective leader must have no hidden agendas. They must treat employees as stakeholders for the road of success. Employees must have a clear vision of success, because if they are not aware of what success means to the company and where the company is heading, there is no way they can feel empowered to help accomplish this success. Managers should teach the basics of cost and revenue to employees. They should open their financial books and inform employees of the situation so they can feel more related to the company. To empower means to entrust,'' it is much more than just telling employees they must create answers and be responsible for those answers, that's passing the buck''. Autonomy and feedback evaluations must also be created to achieve correct empowerment. Autonomy is seen as allowing people absolute freedom'' to finish the job when an exceptional situation occurs. It is to let employees decide how to
handle clients and give them discretionary power when deciding what to spend in order to mend a certain problem. Individual and group feedback is the base for employee autonomy to work effectively towards a beneficial empowerment. Feedback improves the ability of making decisions. It can provide employee evaluations through the exchange of information where the company's missions and goals are stated. With feedback, managers can show employees how far they can go to satisfy a customer and how much they can exceed their expectations. For autonomy to work, management must equip employees with the correct special tools to provide them the necessary and specific guidelines on how to act during certain issues and to make certain decisions. These special tools could come through inside and/or outside company training, which is a good way to provide for appropriate decisions. It can set fair limits, can improve quality service and refine behaviors, it can increase customer satisfaction, and it can teach how to deal with irritated customers. Training can build employee confidence on how to decide the best way to manipulate failure circumstances. So the organizations must allocate sufficient amount of funds for training and provide proper and quality training to the employees. Hierarchy must be replaced with self-directed teams that must be assembled accurately. An enthusiastic, self-directed and work-loving team leader, who is willing to be held accountable for the decisions, should be also selected. The problems to be addressed by the teams could be anything from diminishing defect products, excess inventories and shipping costs, to increasing production volume and promotion capital. Teams are given boundaries and constraints such as staffing, equipment, time, locations and budgets to operate under. They are to recommend a solution and, as long as it is under the pre-established limits, it is to be implemented and supported by upper management. Group decisions, implementations and commitments must be backed by management and supported by them at all
times, even if group decisions were proved ineffective afterwards. No blame is to be assigned and no fingers are to be pointed. A mistake on part of the employees should be viewed as a learning tool. Employees should be encouraged to take risks when within their areas of discretion. Employees should be made to feel that they are part of the organization and part of a team of coworkers who can work together to resolve issues and who respect and appreciate teamwork.
ANNEXURE EMPLOYEE EMPOWERMENT

QUESTIONNAIRE
Dear Employee,
I Vijeth A., student of final semester M.B.A. from M.P. Birla Institute of Management, Bangalore, would like to ask a few questions as part of my MBA project. I request you to kindly answer them honestly and accurately. I assure you that the information given by you will be kept extremely confidential. Thanking you in advance for your co-operation.
Employee Details
Name (Optional) Age Designation
: _________________________________ : _________________________________ : _________________________________
Total number of years of experience: ______________________ For the questions that follow, please tick whichever option you think is applicable 1. I usually participate in the decision making process of my organization. A) Agree B) Cant say C) Disagree
2. I am interested in participating in the decision making process of my organization. A) Agree B) Cant say C) Disagree
3. I usually consult my boss before taking decisions related to my task. A) Agree B) Cant say C) Disagree
4. I am very closely supervised in my work.

A) Agree
B) Cant say
C) Disagree
5. I dont like being closely supervised A) Agree B) Cant say C) Disagree
6. Sufficient amount of job related training is provided to me to enable me to take decisions related to my job. A) Agree B) Cant say C) Disagree
7. I am interested in working in a fully empowered self directed team. A) Agree B) Cant say C) Disagree
8. Sufficient amount of information sharing is done in the organization to facilitate empowerment A) Agree B) Cant say C) Disagree
9. I am provided with sufficient feedback of my actions and their consequences. A) Agree B) Cant say C) Disagree
10. The organization culture supports risk taking and creativity on the part of the employees. A) Agree B) Cant say C) Disagree
11. If my supervisor was away and I need to immediately take a key job related decision for which I usually consulted my boss, I will not hesitate to take the decision by myself. A) Agree B) Cant say C) Disagree
12. I am provided with sufficient access to the resources required to carry out my job independently. A) Agree B) Cant say C) Disagree
13. Sufficient encouragement is provided to excellent performing employees by giving rewards and recognition. A) Agree B) Cant say C) Disagree
14. Every employee of my organization knows what exactly the vision of the organization is. A) Agree B) Cant say C) Disagree
15. Any given employee can accurately answer the question How is the organization doing? A) Agree B) Cant say C) Disagree
16. Employee empowerment motivates the employees to perform better. A) Agree B) Cant say C) Disagree
17. Excellent customer service can be provided by implementing employee empowerment system within the organization. A) Agree B) Cant say C) Disagree
18. Empowerment brings about a sense of responsibility within the team members and helps in bringing out new ideas. A) Agree B) Cant say C) Disagree
19. Employee empowerment leads to overconfidence and in turn misjudgment on part of the subordinates. A) Agree B) Cant say C) Disagree
20. Managers often object to employee empowerment because they perceive that the effort will take power away from them A) Agree B) Cant say C) Disagree
21. I have _____ number of mentors in my organization. A) 0 B) 1 C) 2 D) More than 2
Thank you very much for your co-operation
Bibliography
TEXT BOOKS: 1. Human Resource Management and Personnel Management By Ashwathappa 3RD Edition TATA McGraw-Hill 2. Human Resource Management and Industrial Relations By Subba Rao 2nd Edition Himalaya Publishing House
WEBSITES: www.hr-guide .com

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A Study on

EMPLOYEE EMPOWERMENT IN THE I.T. SECTOR

Under the Guidance and Supervision

Prof. Dr. V. Prakash

M.P. Birla Institute of Management

M.P. Birla Institute of Management

Place: Bangalore Date:

M.P. Birla Institute of Management

Prof. Dr. V. Prakash, Adjunct Professor,

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

Data Analysis and Interpretation

M.P. Birla Institute of Management

List of Tables Table No.

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

INTRODUCTION Industry Profile

M.P. Birla Institute of Management

Status of IT Software Industry in India and Global

M.P. Birla Institute of Management

M.P. Birla Institute of Management

Justification and Significance

M.P. Birla Institute of Management

THEORETICAL FRAMEWORK Employee empowerment and its importance

M.P. Birla Institute of Management

M.P. Birla Institute of Management

The Different Systems of Staff Empowerment

Communications as a means of enhancing Staff Empowerment

Total Quality Management

Manage by prevention, not by correction. Measure the cost of quality.

Therefore the responsibility to complete the task is given to that person.

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

The Empowerment Environment

M.P. Birla Institute of Management

M.P. Birla Institute of Management

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M.P. Birla Institute of Management

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M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

M.P. Birla Institute of Management

The Apprenticeship Model of Empowerment

M.P. Birla Institute of Management

journeypersons and apprentices.

As befitting their advanced knowledge,

The Empowerment Development Process

Stage 2: As employee skills, abilities and acceptance of empowerment

M.P. Birla Institute of Management

M.P. Birla Institute of Management

Benefits when it is correctly implemented

When Employee Empowerment does not work?

M.P. Birla Institute of Management

M.P. Birla Institute of Management