EMPOWERMENT
Abridged from: Bowen, D.E. & Lawler, E.E (Spring 1992). The empowerment of
service workers: What, why, how and when. Sloan Management Review.
WHAT IS IT AND IS IT A GOOD THING?
• What is the nature of the business?
–Basic business strategy
–Ties to the customer
–Technology/Process
–Business environment
–People
• What are you trying to solve?
• Will it make a difference?
SERVICE DELIVERY
PRODUCTION-LINE APPROACH
• Focus on task, not individual
• Substitution of equipment for employees
• Little or no employee decision-making
• Clear division of labor
EMPOWERMENT APPROACH
• May involve high degree of employee decision-making
• Turning the front line loose
• Few or limited rules
• Employees have knowledge of several positions
EMPOWERING SERVICE EMPLOYEES
• BENEFITS:
–Quicker responses for customer needs
–Quicker responses for dissatisfied customers
–Employees feel better about their job
–Employees will interact with customers with more enthusiasm
–Good source of ideas for improvements
–Great word of mouth possibilities
EMPOWERING SERVICE EMPLOYEES
• COSTS:
–Greater $ investment in selection and training
–Higher labor costs
–Slower delivery depending on where you are in line
–Inconsistent delivery
–Violations of fair play (or perceptions of this)
–Bad decisions (or perceptions of this)
ORGANIZATIONAL INGREDIENTS
• Information about organization’s performance
• Rewards based on organization’s performance
• Knowledge that enables employees to understand and contribute to organizational
performance
• Power to make decisions that effect organizational performance
EMPOWERMENT OPTIONS
SUGGESTION INVOLVEMENT
• Employees only empowered to recommend
• Should include a formal suggestion program
• Senior management still in charge of higher level decisions
JOB INVOLVEMENT
• Extensive use of employee teams
• Supervisors must support front line (rather than direct)
• Senior management still in charge of higher level decisions
HIGH INVOLVEMENT
• Employees expected to make decisions
• Requires high level of employee concern for outcomes
• Profit sharing by employees
TWO CRITICAL POINTS
• Authority
– Being permitted to make decisions
• Responsibility
– Being expected to make decisions