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Establishing Institutional Excellence

Employee Empowerment

by Vadim Kotelnikov

Two Common Traits of Great Leaders and Managers

  1. They have a desire to employ people with greater skills or knowledge than they themselves possess

  2. They have an ability to develop people into leaders themselves

Contemporary Management Involves All Levels of the Organization in the Following Functions:

  • Determining corporate vision, mission, objectives, and long-range goals

  • Analyzing and building organizational structure

  • Organizing meaningful jobs related to the company's mission

Main Benefits of Employee Empowerment

  • Releases the individual wisdom, creativity and energy of employees

  • Facilitates teamwork and harnessing of collective power of employees

  • Changes the managers' mind-set and leaves them with more time to engage in broad-based thinking, visioning, and nurturing.

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Why Employee Empowerment?

Involvement in an organization is no longer a one-way street. In today's corporate environment a manager must work towards engaging organization forcefully enough to achieve its objectives. New knowledge-based enterprises are characterized by flat hierarchical structures and multi-skilled workforce. Managers assume more leadership and coaching tasks and work hard to provide employees with resources and working conditions they need to accomplish the goals they've agreed to. In brief, managers work for their staff, and not the reverse.

Empowerment is the oil that lubricates the exercise of learning. Talented and empowered human capital is becoming the prime ingredient of organizational success. A critical feature of successful teams, especially in knowledge-based enterprises, is that they are invested with a significant degree of empowerment, or decision-making authority.

Equally important, employee empowerment changes the managers' mind-set and leaves them with more time to engage in broad-based thinking, visioning, and nurturing. This intelligent and productive division of duties between visionary leaders, focusing on emerging opportunities, and empowered employees, running the business unit day to day (with oversight on the leader's part) provides for a well-managed enterprise with strong growth potential.

Participatory Management

Cross-level work groups can contribute a lot to corporate decision-making and planning. Participatory management means seeking employee's opinions and actions whenever possible and keeping an open mind to the suggestions and criticism they offer. Participatory management offers the following benefits2:

  • It is a powerful motivator - you own what you do and where you work

  • Better decisions result - a synergy effect from collecting more inputs

  • A trusting climate is created - it is important for all employees to know not what is being done, but why

  • Employees understand their jobs better - as they understand better how they fit into achieving the overall corporate goals

  • Progress towards corporate goals is accelerated - through frequent discussions about how the work is progressing

Employee Ownership of Quality

Quality is not something that management can mandate or dictate. To gain employee commitment to the quality process, your company's management, control, and reward systems must be modified to give employees greater responsibility and opportunity to become quality and customer oriented and motivate them to strive for continuous improvement. Give ownership for quality to your employees, elicit and listen to their ideas about improvement and empower them to make more decisions and perform tasks that are quality related.

Building and Nurturing Customer Relationships

Creating a work environment that encourages rapid response to customers' needs and attentive follow-through is the key to leveraging the power of the service-profit chain. This is only possible when people are empowered to make decisions and are motivated to solve problems. By encouraging employees to go beyond the literal boundaries of their jobs - to make suggestions for improvement - you gain not just a part, but the full potential of their contributions to the business.

Delicate Balance between Authority and Employee Empowerment

Effective leadership demands a delicate balance between laissez-faire and overly controlling styles. "Tilting too far toward a majority vote democracy, the manager becomes reluctant to exercise sufficient force necessary to propel the company toward its goals," says Harvard Business School professor Michael Beer. "This creates an organizational bereft of leadership. In such an environment, management fails to coordinates the various components of the enterprise and, in turn, fails to harness the positive factors inherent in the conflict between operating units (such as credit versus sales or technology versus human resources). Ironically, what appears to authorize an exceptional level of personal freedom and flexibility turns out to be a trap. Call it the paradox of empowerment3."

Case Study: General Electric

Some years ago, in locations throughout GE, local managers were operating in an insulated environment with Chinese walls separating them, both horizontally and vertically, from other departments and their workforce. Employee questions, initiatives, and feedback were discouraged.

In the new knowledge-driven economy, Jack Welch, CEO, General Electric, "viewed this as anathema. He believed in creating an open collaborative workplace where everyone's opinion was welcome3". He wrote in a letter to shareholders: "If you want to get the benefit of everything employees have, you've got to free them - make everybody a participant. Everybody has to know everything, so they can make the right decisions by themselves"... More

Bibliography:

  1. "Competitive Manufacturing Management", John M. Nicholas, 1998

  2. "Motivation and Goal-Setting", Jim Cairo, 2000

  3. "Extreme Management", Mark Stevens, 2001

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