Proceedings of 26th International Business Research Conference 7 - 8 April 2014, Imperial College, London, UK, ISBN: 978-1-922069-46-7 The Relationship between Structural Empowerment and Job Satisfaction: Case Study of a Thai Auto Mobile Company Wannapa Luekitinan * This study aimed to explore level of structural empowerment and level of job satisfaction in a Thai auto mobile company, including investigate the relationship between structural empowerment and job satisfaction. The questionnaire was used to gather the data for empirical analysis. The sample was 226 first-line employees in an auto mobile company and systematic random sampling was used to select sample. For measurement, the structural empowerment variable consisted of information, support, resources, and opportunities, and the job satisfaction consisted of work itself, advancement, recognition, responsibility, and opportunity for growth. To collect data, the electronic mailing was used and the response rate was 86.28%. The finding revealed the structural empowerment positively related to employee job satisfaction. Especially, support factor strongly relate to job satisfaction. Further research should consider psychological empowerment impact on job satisfaction and employed qualitative method to gather indepth data. Name of Track: Management, Human Resource Management 1. Introduction Empowerment is a modern management technique that essential to organizational change, learning, and transformation as the global business environment becomes ever more competitive (Dimitriades, 2005) according to employee empowerment is commonly a fundamental and explicit part of the prescriptions offered to improve business performance (Division and Martinsons, 2002). Considering benefits of empowerment, it can be divided into two areas that are benefits for the organization and benefits for the individual. Specially, organizations have sought improvements in cost control, flexibility, and quality improvement. While benefits for the individual are reducing conflict, ambiguity, and emotional strain in their role, including empowered employees will have a great sense of job satisfaction, motivation, and organizational royalty (Greasley and King, 2005). Regarding empowerment in industry, empowerment in manufacturing organization is part of the general move toward greater task flexibility and the need for employees to take on increase initiative and responsibility (Yusoff and Abdullah, 2008). Especially, front-line workers are best placed to make decision about what to do and how to do it (Kuo, Ho, Lin, and Lai, 2010). Thus, organization have to delegated decision power, provided appropriate training for them, gave the relevant strategic information and rewarded employee for achieving results (Boudrias, Gaudreau, Savoie and Morin, 2009). Moreover, *Dr. Wannapa Luekitinan, Human Resource Manangement Program, Faculty of Management and Tourism, Burapha University, Thailand. Tel. +668 3112 4070 Address : 169, Long Had Rd., Sean Suk, Mueng, Chonburi, 20130, Thailand. Email: Wannapa.w236@yahoo.com, 1 Proceedings of 26th International Business Research Conference 7 - 8 April 2014, Imperial College, London, UK, ISBN: 978-1-922069-46-7 the organization should support employees; such as time off from regular duties, clerical support and budgetary support (Wooddell, 2009). However, understanding difference dimensions of empowerment will enable managers to design and implement a successful empowerment program (Yang and Choi, 2009). This study aimed to explore level of structural empowerment and level of job satisfaction in a Thai auto mobile company, including investigating the relationship between structural empowerment and job satisfaction. The paper divided into five parts; the first part is introduction, the second part is literature review, the third part is methodology, the fourth part is findings and the last part is conclusion and limitation. 2. Literature Review 2.1 Empowerment In the 1990s, empowerment was considered and advocated as a means to liberate workers, encourage them to be more innovative, and make them both happier and more productive (Division and Martinsons, 2002). The meaning of empowerment has tended to be associated with the concept of power, thereby inferring that power is redistributed by in a senior position to subordinate position (Greasley and King, 2005). Remarkably, many proponents of employee empowerment seem to assume that employees will eagerly accept the responsibility for managing their own work and making decisions related to their work (Division and Martinsons, 2002; Greasley and King, 2005). These will enrich employees' work experience and directly affect to work-related outcome (Kuo, Ho, Lin, and Lai, 2010). In addition to the process of empowerment is a social exchange-driven process which requires managers to reduce power and control, and instead use cooperation and facilitation with their subordinate. Thus, subordinates' trust and organizational support; such as structure, social politic, resource, information and culture, are very critical in this process (Chan, Taylor, and Markham, 2008). Wooddell (2009) stated the four components of empowerment in organization level that support employee empowerment as follow: Shared vision – the vision should originate with the directors. The individual or team was delegated by authority to identified its goals and design its own process to achieve its goals. Moreover, developing leadership skill of key employees and facilitated at staff meetings in every major weeks would be help department to address an organizational problems. Organizational support – the organization should support employee including time off from regular duties, clerical support and budgetary support. Knowledge and learning – employees have to improve their skill in project management, such as brainstorming, facilitated discussion, time management, and problem solving. Institutional recognition – organization must recognize employee’s skills in implementing a complex task under difficult condition. Considering empowerment supporting, Kanter’s theory of structural empowerment have well known that described four environment social structures necessary for effective 2 Proceedings of 26th International Business Research Conference 7 - 8 April 2014, Imperial College, London, UK, ISBN: 978-1-922069-46-7 employee empowerment. The theory indicated that structural empowerment must be in place by leader and then channeled through the employee. The components of structural empowerment are (Kanter, 1993): Information – leaders can give employees the sense of purpose of work meaning, and enhance ability to make decision that contributes organizational goals. Support – can be described as feedback, guidance, emotional support, helpful advice, or hand-on assistance, which can all be very beneficial to employees. Resources – leaders must allow employee to access material, supplies, time, and equipment to achieve organizational goals. Opportunities – leaders must concern employee growth, professional development, and the chance to increase skills and goals. 2.2 Job Satisfaction Job satisfaction refers to the degree which individual feels positive and negative aspects of the job (Schermerhorn, 1996). Nowadays, job satisfaction is an important issue to organization because it not only related to employee performance; such as work efficiency, absenteeism and turnover that lead to higher labor cost, but also related to organizational performance; such as quality of product and customer satisfaction. If companies want to manage corporate performance, managers must develop an understanding of factors that affect employee satisfaction (Droussiotis and Austin, 2007) To evaluate job satisfaction, researcher tried to find factors contributing to job satisfaction, but traditional theory was popular and was employed to measure job satisfaction. According to Herzberg (1966), the evaluation of job satisfaction divides job situation factors into those that lead to job satisfaction and those that lead to job dissatisfaction. Herzberg’s job satisfaction factors include the work itself achievement, advancement, recognition, responsibility, and opportunity for growth, while Locke (1976) determined seven work issues associated with job satisfaction. These include: mentally challenging work, personal interest in the specific job, work that is not too physically tiring, perceived equitable rewards, appropriate working conditions, employee self-esteem, management assistance in managing the workplace by minimizing conflict and ensuring that work is interesting and good pay/promotions are available. 2.3 The Relationship between Structural Empowerment and Job Satisfaction The relationship between worker empowerment and job satisfaction is much more complex. Laschinger, Finegan, Shamian, and Wilk (2004) stated change in perceived structural empowerment had direct effect on changes in psychological empowerment and job satisfaction due to the fostering environment can enhance employee perception of empowerment, as well as, Kruja and Oelfke (2009) noted in their work that empowerment strongly impact on job satisfaction. Mushipe (2011) reported empowerment is positively associated with job satisfaction. Besides decision making embraced several areas such as self-governance, freedom, and self-control, and information sharing facilitated the whole empowerment exercise. Furthermore, authority granting has an impact on employee attitude, job satisfaction and job commitment (Kazlauskaite, Buciuniene, and Turauskas, 2012) that the most positive 3 Proceedings of 26th International Business Research Conference 7 - 8 April 2014, Imperial College, London, UK, ISBN: 978-1-922069-46-7 aspects related to job satisfaction are relations with the colleagues and physical conditions(Pelit, Öztürk, and Arslantürk, 2011). Fig. 1: Conceptual Framework Structural Empowerment - Information - Support - Resources - Opportunities Job Satisfaction - Work itself - Advancement - Recognition - Responsibility - Opportunity for growth 3. The Methodology The study employed quantitative method and questionnaire was used to gather the data for empirical analysis. The population was 518 first-line employees in an auto mobile company. The 226 sample size was calculated by using Taro Yamané formula and systematic random sampling was used to select samples. To collect data, the electronic mailing was employed and the total number of returns was 195; the response rate was 86.28%. For measurement, the structural empowerment variable consisted of information, support, resources, and opportunities based on Kanter’s Theory, and the job satisfaction consisted of work itself, advancement, recognition, responsibility, and opportunity for growth based on Herzberg’s Theory. Further, Likert scale ranging from 1 (fully disagree) to 5 (fully agree) was used to measure both variables. 4. The findings Most respondents were male (n = 123), age between 31-40 years (n = 94) and 34.35% of employees stayed with the organization between 1-5 years as show in table 1. Table 1 Sample Distribution Topics Gender Male Female Age 20-30 Years 31-40 Years 41-50 Years Work Period 0-1 Years 1-5 Years 6-10 Years More than 10 Years Number of Employees Percentage 123 72 63.07 6.93 59 94 42 30.25 48.20 21.55 25 67 55 48 12.82 34.35 28.20 24.63 4 Proceedings of 26th International Business Research Conference 7 - 8 April 2014, Imperial College, London, UK, ISBN: 978-1-922069-46-7 Considering total structural empowerment, means was 3.18 and the employee ranged the support and opportunity in the higher rate (xˉ = 3.37, SD = 0.30), followed by the information (xˉ = 3.36, SD = 0.41), and the resource was ranged in lower rate (xˉ = 2.62, SD = 0.32). Table 2 Means and Standard Deviation of Structural Empowerment Factors Information Support Resource Opportunity Total Means 3.36 3.37 2.62 3.37 3.18 SD 0.41 0.30 0.32 0.30 0.33 Considering total job satisfaction, means was 3.57 and the employee ranged the responsibility in the higher rate (xˉ = 3.71, SD = 0.96), followed by the work itself (xˉ = 56.3, SD = 1.00), opportunity for growth (xˉ = 56.4, SD = 0.96), advancement (xˉ = 56.0, SD = 0.99), and the recognition was ranged in lower rate (xˉ = 3.39, SD = 0.93). Table 3 Means and Standard Deviation of Job Satisfaction Factors work itself advancement recognition responsibility opportunity for growth Total Means 3.65 3.60 3.39 3.71 3.64 3.57 SD 1.00 0.99 0.93 0.96 0.96 0.39 The structural empowerment was positively significant correlated with job satisfaction (r = 0.61, p≤0.05) and all factors were significant correlated with job satisfaction. The variable that closely relate to job satisfaction was support (r = 0.65, p≤0.05). The later variable that positively significant relate to job satisfaction were opportunity (r = 0.52, p≤0.05) and resource (r = 0.43, p≤0.05). Finally, information was positively significant correlated with job satisfaction at lower level (r = 0.11, p≤0.05). Table 4 Relationship between Structural Empowerment and Job Satisfaction Structured Empowerment Information Support Resource Opportunity Total Job Satisfaction (r) 0.41* 0.65* 0.23* 0.52* 0.61* * p ≤0.05 5 Proceedings of 26th International Business Research Conference 7 - 8 April 2014, Imperial College, London, UK, ISBN: 978-1-922069-46-7 5. Conclusions and Limitations This study aimed to explore level of structural empowerment and level of job satisfaction in a Thai auto mobile company, including investigating the relationship between structural empowerment and job satisfaction. As the findings in previous section, the structural empowerment positively relate to job satisfaction. Especially, support factor strongly relate to job satisfaction that can described base on social exchange-driven process which require managers to reduce power and control, and instead of cooperation and facilitation with their subordinate [10]. For leader role, manager should be supportive leader that encourage employees to use their decision-making authority and manager must trust employee abilities, commitment and judgment. Further, giving employees guidance how to use their increased authority, and support them in performing new role successfully (Klidas, Berg and Wilderom, 2007). This can create employees' trust and reduce their stress from their decision associated with subordinate’s work (Chan, Taylor, and Markham, 2008) According to this study is a pilot research, the author have not concern in another type of empowerment, such psychological empowerment, including job attitudes that would impact on employee performance. Besides the time limitation and population is a single company, the results is not quit complete and reliability. Therefore, further research should increase population, compare with other industry, and emphasize on other variables as mentioned. Moreover, the qualitative method might gather the hidden issues or causal relation about empowerment and job satisfaction. 6. References Dimitriades. ZS 2005, Employee Empowerment in the Greek Context, International Journal of Manpower, Vol. 26, No. 1, pp. 80-92. Division, R and Martinsons, MG 2002, Empowerment or enslavement? A Case of Process-Based Organizational Change in Hong Kong, Information Technology and People, Vol. 15, No.1, pp. 42-59. Greasley, K and King, N 2005, Employee Perceptions of Empowerment, Employee Relation, Vol. 27, No.4, pp.354-368. 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