Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 Analyzing the relationship between organizational structure and employee empowerment in Eastern Azerbaijan Hossein Vazifedoust Department of Business Management, Science and Research Branch, Islamic Azad University, Tehran, Iran. Mohammad Nasiri Department of Business Management, Science and Research Branch, Islamic Azad University, Tehran, Iran. Abdollah Norouzi Department of Business Management, Science and Research Branch, Islamic Azad University, Tehran, Iran. e-mail: Abdollahnorouzi63@yahoo.com ABSTRACT Current study is aimed at analyzing the relationship between organization's structure and employees' empowerment of Eastern Azerbaijan. For this reason, organizational structure has been defined based on Robins' theory in three dimensions of formality, complexity, and centralization, and empowerment is according to Spreitzer theory in five dimensions of competency, autonomy's sense, the sense of trust, the sense of meaningfulness, and the sense of effectiveness and in this regard one main hypothesis and three sub-hypotheses have been arranged. Research population is employees of Eastern Azerbaijan's governorship in which they are 375 people. According to Morgan's table, 190 people have been selected as the sample size. In this research, data collection instrument is questionnaire, which provided statistical sample after assessing its validity and reliability. After gathering questionnaires, by means of descriptive statistics methods, obtained information was summarized and classified and Pearson test was used for testing research hypotheses. Results indicate that a significant relationship exists between organizational structure and its dimensions with employee empowerment of Eastern Azerbaijan's governorship. Keywords: organizational structure, formality, complexity, centralization, empowerment 1. INTRODUCTION Organization is a social phenomenon, which is coordinated consciously and has distinct boundaries and for achieving goal or objectives, operates based on a sequence of permanent bases. Term "conscious" often indicates management and social phenomenon implies that organization has been composed of individuals and groups that interact with each other. Interactive patterns that people inside organization follow them don’t come into existence accidentally but also has been already thought about them. Hence, since organizations are social phenomena, so interactive patterns of their members must be level and harmonized so that ambiguity and confusion is minimized and consequently ensuring that main organizational tasks are performed. Organization has relatively certain boundaries to be able to distinguish organization's members from nonmembers. Being specified such boundaries are carried out by means of concluding formal or informal contracts between members and organization. "Organizational structure stipulates how tasks are assigned, who does reports whom and which are formal coordination mechanisms as well as organizational interactive patterns that must be observed?" (Robbins, 2005: 21-22). Organizational structure is among indicators, which is considered in the study of any organization. Organizations with various structures will be having different outputs; in the age of various and quick environmental changes, having a mechanical and inflexible structure can't be responsible to organizations' needs, organizations with such characteristics are condemned to decline and annihilation. In today's world, organizations must be designed so that can adapt organization to environmental 10 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 changes. In sum, it must be designed a structure that provides all employees' involvement in organizational affairs, only by this procedure can be assured the sustainability and survival of organization in today's turbulent world. Governing situation on the country's administrative system is obvious for the public specially people who are engaged in administrative system and its mazes. This situation is in a manner that has been presented numerous problems including staff's disguised underemployment, unnecessary administrative bureaucracy, lingering clients etc for society and users of government services. These problems are in a manner that have been in practice questioned the efficiency of governmental organizations. Although the reason of all these problems can't be summarized only in one case and several reasons can be involved in creation and continuance of status quo, one reason of such problems is lack of employee's involvement in planning, decision making, and policy making of public organizations, which in a way this appears in the lack of implementation or incomplete and improper implementation of rules and regulations. Employee involvement in organization affairs is one of important issues that today has been felt and considered more than any other time. Because every day, quick and various changes in environmental factors increase the amount of ambiguity, uncertainty, and complexity of organizations' environment and the competitive advantages of organizations is swamped basic change. To achieve sustainable competitive advantages and dynamic balance in this turbulent environment, equipping to empowered employees has been become a critical principle. Since employees are as only resources which can be exclusive in one organization than other organization and have the capability of upgrading knowledge, skill, and motivation. Such capability not only is possible by staff training but also must be prepared a situation so that employees themselves also forerun in this context using their creativity. Therefore, as Roy and Sheena (2005) believe that not only managers must enjoy leadership skills but also employees must learn methods which proceed towards leadership itself (Roy & Sheena, 2005, p. 41). To achieve these characteristics, organization must empower its most important competitive resource and tool i.e. human resource (Davoudi & Rezaee, 2002, p. 49). Employee's intellectual ability and thoughts in organization are provided organization as latent capitals. Thinkers of change management and organization's improvement introduce empowerment models of human resource, a strategic and effective approach on human resource performance. They believe that human resource empowerment is a comprehensive approach, which can be effective in organization's change and improvement path, also create or maintain organization's competitive advantage. For human resource empowerment, organizations must extend their leadership ability aimed at compiling and shedding comprehensive strategy of human resource empowerment. These goals should be flown in empowerment processes so that human resources enjoy necessary knowledge and skill for solving problem in the organization, also hold them motivated and satisfied by means of encouragement and persuasion in the path of individual and organizational common interests. This process will feature the output of human resource performance in the degree of involvement, creativity, innovation and other key performances. Several factors can be effective in employees' empowerment which in this study, organizational structure has been examined. For this purpose, according to Stephen Robbins's theory organizational structure has been defined in three dimensions include: Formality Complexity Centralization And based on Spreitzer theory, employees' empowerment is defined in five dimensions: Feeling of competency Sense of autonomy Sense of trust Sense of meaningfulness Feeling of effectiveness 11 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 In order to the relationship between organizational structure and employee empowerment of Eastern Azerbaijan's governorship is examined. In general, this study is sought to answer following question: What type of relationship is there between organizational structure and employee empowerment of Eastern Azerbaijan's governorship? 2. RESEARCH LITERATURE AND BACKGROUND Bernz and Stalker (1961) could take important steps to offer a model which has several structures. They identified a mechanical structure which was much similar to ideal type of bureaucracy and called another type of it organic structure which was approximately the counterpart of this structure. Hence, organic organization has the network structure of control rather than has hierarchy of authority, works must be adjusted and changed continuously and permanently rather than is specialized, and information must be exchanged constantly and offered recommendations rather than the presence of supervisor who is at the top of organization. Tom Bernz and G. M Stalker examined 20 British and Scottish companies in order to identify how structures and managerial activities of these organizations may be different according to environmental conditions. What they found was that the type of structure which existed in environments with sequential and dynamic changes compared to a structure which organizations choose in a stable environment was completely different. Bernz and Stalker named these two structures as organic (biological) and machine structures respectively. According to Bernz and Stalker, the most effective structure is a structure which adapts itself to environmental requirements i.e. machine design is usable in a stable and safe environment and organic structure serves in a turbulent and with large changes environment. Therefore, they recognized that machine and organic structures are ideal types of organizational structures which place on the two ends of a continuum. No organization has pure machine structure but normally each organization moves in the direction of one of these two structures. Furthermore, they emphasized that none of them doesn’t prefer to each other. It is the nature of organizational structure which determines what structure must be used (Robbins, 2006, p. 181). Cruzier (1964) studied two large organizations in two points of France. First organization was an administrative entity which had a very simple structure regarding division of labor and works were very specialized, repeated, and monotonous and there wasn’t large difference between units. Also, with regard to size or magnitude of organization, organizational pyramid was short. If we look at this organization over two vertical and horizontal axes (in organizational chart), it isn’t complex. When this researcher studied France Tobacco Company, third axis (dispersion of units) was added to this research. The system was composed of 40 production units. These units were relatively large which the number of employees in any one of them reached 350 to 400 people but there were only 6 workers or employees in each production unit. Unit's supervisors undertook employees' supervision and administration whether worker or administrative employee. Even specialized tasks were much similar. He offers documents and evidences based on that structure simplicity doesn’t mean that mentioned organization isn’t dealt with problems, also these problems are on the basis of internal and external conditions of organization which don’t have any relationship with its structure. In summary, we can assume that if specialized tasks (technology) alter in a manner that caused more effectiveness of organization, it will be more complex. Alfred Chandler carried out a classic research about relationship between organization's strategy and its structure and published in the early 1960s. He examined hundreds companies of American largest companies and concluded that modifications in the strategy of these companies had been led to changes in their structure. Therefore, whenever organizational structure doesn’t follow strategy, results will be unfavorable. Chandler realized that his studied firms had been first launched with centralized structures. This case reflects this reality that they first had limited production lines. They extended by increasing demand for their products, increased their production lines and were forced to apply different structures to follow new strategies and conform firm to these strategies. Essentially, he argues that organizations initiate operation by a product with a single production 12 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 line, they perform only one task. In this situation, strategy simplicity of organizations is compatible to simple and non coherent structure. Decisions can be centralized under the authority of one senior manager, because organization's strategy is focused here and a structure which can implement this strategy must have little complexity and formality. According to Chandler's view, when organizations take up diversification, they must employ a different structure compared to firms that follows single- product strategy (Robbins, 2006, p. 115). In 2006, a study titled by "analyzing the relationship between organizational structure and employee empowerment", a MA thesis, has been carried out by Majid Horabadi Farahani in school of management, Tehran University. In this research, main topic is that why structural variables have more power for influencing on the behavioral variables. Besides, analysis of organization's factors and structures imposes people a framework that specifies the direction of people's behavior and their attitudes about organization and even themselves, which recognizes the effect of these structures on our states, dispositions, and behaviors and thus has been addressed to improve status quo (Horabadi Farahani, 2006). In 2007 a research, "empowerment measurement of Tehran public firms' employees by emphasizing managers' behavior", in the research framework, was carried out by Ali Baniasadi, Aliakbar Baniasadi, Simin Hosseinian, and Seyedeh Monavar Yazdi, in the department of Alzahra University. This study aimed at constructing a plan, change and improvement, the emphasis on the goals and remedy of human resource to remove and solve problems and the main role of organization's management which is ensuring factor for improvement is considered the mobilization of human forces to achieve organization's goals; by stressing the evaluation of managers behavior on employee empowerment they achieve Tehran public companies so that offer solutions to remove problems of Tehran companies' employees (Baniasadi et al., 2007). In 2007, a research, "the study and analysis of relationship between empowerment and organizational commitment of bank's staff", a MA thesis, had been performed by Nasser Yavari in Tehran Management University. The study examined this issue that first, is there empowered and committed employees in the Melli Bank or not? Second, if so, what relationship is there between them? So, he studied this research about south Tehran administration of branches' employees in order to enhance employees' empowerment and organizational commitment (Yavari, 2007). In 2001, a research, "the evaluation of empowerment methods of Birjand University's employees", a MA thesis, was carried out by Mohammad Mohammadi in Tarbiat Moddaress University. In fact, this study is sought methods that provide the causes of competitive advantage for employees by generating motivation in employees thus this research has been addressed to describe and analyze empowerment which in this era identifies as an appropriate manner of motivation (Mohammadi, 2001). Figure 1- Research analytic model Independent variable Organizational structure Formality Complexity centralization Dependant variable Employee empowerment 13 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 Figure 2- operational model of independent variable Index Dimensions Concept Conformity of employee's performance with existing standards (existence of job description) Observance of regular task procedures Formality Existence of annual policies and instructions for different tasks Being determined job procedures Compliance of administrative regulations, instructions, and standards Observance of administrative formal rules and regulations and standards in displacements Organizational structure Observing standards by employees Surveying employees about new issues Employee involvement in organization's decision makings Centralization Information distribution between low ranks Survey of employees about new plan or project Management levels between the lowest rank and the highest rank Number of existing department in the organization Total number of labor who are involved in the dispersed units Communication with high ranked management of organization Complexity Number of job titles Number of physical locations (units' dispersion) 14 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 Figure 3- operational model of dependent variable Index Dimensions Concept High control over task unit Feeling of being effective at work Effectiveness Sense of being able to apply its capacity Task meaningfulness Being important doing work Meaningfulness of business activities Meaningfulness Accuracy about doing work Confidence on capabilities for doing works Sense of necessary capability and expertise in the task scope Empowerment The sense of being able to do work Competency Independence about decision making concerning work The sense of necessary expertise and initiative for doing work Feeling of being able to do tasks Autonomy Feeling of latitude and experience for doing work Sense of being experience to do work Sense of trust between employees and upstream officials Trust Feeling of success in personal skills Employees' confidence for fair treatment with them 15 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 Organizational structure "Organizational structure is a method or manner which organizational activities are divided, organized, and coordinated by it" (Aarabi, 2006, p.15). Formality Formality is applied to regulations, methods, and written documents whereby are defined tasks description, instructions, and commands which employees and organization's members must observe and implement them (Daft, 2006, p.285). It is rules and regulations that organization enacts for doing works and is a part of thing which is named formalization (Hall, 2005, p.107). Centralization Centralization is called the hierarchy of authority levels which can make decisions. In centralized organizations, senior managers and those who are at the head of organization have decision making right and in decentralized organizations, such decisions are made at lower levels. Centralization can be described as a measure which individuals of units or organizational levels themselves have formal authority for choosing decision making solutions and thus employees have minimum power to exercise their views (Robbins, 2006, p.100). Complexity Complexity refers to the degree of separation which exists in the organization; in fact complexity means the number of tasks or sub-systems which are performed or existed inside an organization. Empowerment Enabling is a process that managers allow employees to gain power by it and influence inside of organization. To overcome complexity and the acceleration of challenges which we deal with them in today's environment, the success of an organization is depended on to what extent all employees can be empowered (Irannezhad Parizi, 2006, p.459). Operational definition of research variables Organizational structure According to Stephen Robbins's theory, the dimensions of organizational structure include: 1. Formality 2. Complexity 3. Centralization Formality The indices of formality dimension of organizational structure are: Conformity of employee's performance with existing standards (existence of job description) Observance of regular task procedures Existence of annual policies and instructions for different tasks Being determined job procedures Compliance of administrative regulations, instructions, and standards Observance of administrative formal rules and regulations and standards in displacements Observing standards by employees. Complexity The indices of complexity dimension of organizational structure include: Surveying employees about new issues Employee involvement in organization's decision makings Information distribution between low ranks Survey of employees about new plan or project. 16 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 Centralization The indices of centralization dimension of organizational structure are: Management levels between the lowest rank and the highest rank Number of existing department in the organization Total number of labor who are involved in the dispersed units Communication with high ranked management of organization Number of job titles Number of physical locations (units' dispersion). Empowerment Based on Spreitzer theory, empowerment dimensions are in five aspects as follows: 1. The feeling of effectiveness 2. The sense of meaningfulness 3. The sense of competency 4. The feeling of autonomy 5. The sense of trust Feeling of effectiveness The indices of effectiveness feeling are: High control over task unit Feeling of being effective at work Sense of being able to apply its capacity The sense of meaningfulness The indices of meaningfulness sense include: Task meaningfulness Being important doing work Meaningfulness of business activities Accuracy about doing work Confidence on capabilities for doing works The sense of competency The indices of competency sense are: Sense of necessary capability and expertise in the task scope The sense of being able to do work Independence about decision making concerning work Authorities proportionate to task responsibility The feeling of autonomy The indices of autonomy sense include: The sense of necessary expertise and initiative for doing work Feeling of being able to do tasks Feeling of latitude and experience for doing work Sense of being experience to do work The sense of trust The indices of trust sense include: Sense of trust between employees and upstream officials Feeling of success in personal skills Employees' confidence for fair treatment with them 17 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 3. RESEARCH HYPOTHESES 1. 2. There is a significant relationship between organic organizational structure and employee empowerment of eastern Azerbaijan governorship. 1.1 There is a significant relationship between low organizational formality and employees' empowerment of eastern Azerbaijan governorship. 1.2 There is a significant relationship between organizational decentralization and employees' empowerment of eastern Azerbaijan governorship. 1.3 There is a significant relationship between low organizational complexity and employees' empowerment of eastern Azerbaijan governorship. The relationship of organic organizational structure dimensions differs from employee empowerment of eastern Azerbaijan governorship. 4. RESEARCH METHODOLOGY Regarding method, this study is a survey research and in terms of goal is applicable. Research population is the employees of eastern Azerbaijan governorship. According to received information from governorship, in the time interval of doing research the number of them is 375. Sample size has been selected 190 based on Morgan method. Stratified random sampling is used to select statistic sample from population. Population is used for data collection and in order to test research hypotheses, a questionnaire has been used which is adjusted with regard to research variables and operationalising them. In this research, face validity is used to determine validity of data collection tool, to estimate questionnaire's reliability is used Cronbach alpha method. With a pilot study on 25 employees of governorship, for organizational structure's items and empowerment's items of questionnaire, the value of Cronbach alpha was obtained 0.861 and 0.823 respectively. The values of these statistics show that first questionnaire's items have a high correlation together and second, research questionnaire has a high reliability. Reliability test of organizational structure items of questionnaire frequency percent Valid 25 100.0 Excluded 0 0 total 25 100.0 Cronbach Alpha Number of items 0.861 17 Reliability test of empowerment items of questionnaire frequency percent Valid 25 100.0 Excluded 0 0 total 25 100.0 Cronbach Alpha Number of Items 0.823 18 In order to analyze obtained data from collected questionnaires, the methods of inferential statistics is used. Pearson's r-test and Freidman test will be used to test H1 and its sub-hypotheses. 5. RESULTS Hypothesis 1 test: There is a significant relationship between organic organizational structure and employees' empowerment of eastern Azerbaijan governorship. 18 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 H1: There is a significant relationship between organic organizational structure and employee empowerment of eastern Azerbaijan governorship. H0: There isn’t a significant relationship between organic organizational structure and employee empowerment of eastern Azerbaijan governorship. Table . Pearson's r-test to determine correlation between organizational structure and employee empowerment of eastern Azerbaijan governorship organizational employee structure empowerment Pearson correlation 1 0.614 organizational Sig.(2-tailed) 0 0.000 structure N 190 190 Pearson correlation 0.614 1 employee Sig.(2-tailed) 0.000 0 empowerment N 190 190 As noticed above, in 2-tailed significance level, significance level of Pearson's r-test is 0.000 and it is lower than minimum level of significance 0.05, also regarding calculated Pearson's value which in confidence level 0.95 and degree of freedom 189 is 0.614 and it is higher than Pearson's critical value, 0.113, so there is a significant relationship between organic organizational structure and employee empowerment of eastern Azerbaijan governorship. Hypothesis 1-1 test There is a significant relationship between low organizational formality and employee empowerment of eastern Azerbaijan governorship. H1: There is a significant relationship between low organizational formality and employee empowerment of eastern Azerbaijan governorship. H0: There isn’t a significant relationship between low organizational formality and employee empowerment of eastern Azerbaijan governorship. Table . Pearson r-test to determine correlation of low organizational formality and employee empowerment of eastern Azerbaijan governorship low organizational employee formality empowerment Pearson correlation 1 0.601 low organizational Sig.(2-tailed) 0 0.000 formality N 190 190 Pearson correlation 0.601 1 employee Sig.(2-tailed) 0.000 0 empowerment N 190 190 As observed in table 9-4, in 2-tailed significance level, significance level of Pearson r-test is 0.000 and it is lower than minimum significance level 0.05, and also given calculated Pearson value which is 0.601 and it is higher than Pearson critical value, 0.113, in confidence level 0.95 and degree of freedom 189, then a significant relationship exists between low organizational formality and employee empowerment of eastern Azerbaijan governorship. Hypothesis 1-2 test There is a significant relationship between organizational decentralization and employee empowerment of eastern Azerbaijan governorship. 19 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 H1: There is a significant relationship between organizational decentralization and employee empowerment of eastern Azerbaijan governorship. H0: There isn’t a significant relationship between organizational decentralization and employee empowerment of eastern Azerbaijan governorship. Table . Pearson r-test to determine correlation of organizational decentralization and employee empowerment of eastern Azerbaijan governorship organizational employee empowerment decentralization Pearson correlation 1 0.489 organizational Sig.(2-tailed) 0 0.000 decentralization N 190 190 employee empowerment Pearson correlation Sig.(2-tailed) N 0.489 0.000 190 1 0 190 As noticed in table 10-4, in one-tailed significance level, significance level of Pearson r-test is 0.000 and it is lower than minimum level of significance 0.05 and with regard to calculated Pearson value which is 0.489, in confidence level 0.95 and degree of freedom 189, it is higher than Pearson critical value 0.113, therefore a significant relationship exists between organizational decentralization and employee empowerment of eastern Azerbaijan governorship. Hypothesis 1-3 test There is a significant relationship between low organizational complexity and employee empowerment of eastern Azerbaijan governorship. H1: There is a significant relationship between low organizational complexity and employee empowerment of eastern Azerbaijan governorship. H0: There isn’t a significant relationship between low organizational complexity and employee empowerment of eastern Azerbaijan governorship. Table . Pearson r-test to determine the correlation of low organizational complexity and employee empowerment of eastern Azerbaijan governorship employee low complexity empowerment Pearson correlation 1 0.280 Sig.(2-tailed) 0 0.000 low complexity N 190 190 Pearson correlation 0.280 1 employee Sig.(2-tailed) 0.000 0 empowerment N 190 190 As observed in table 11-4, in 2-tailed significance level, the significance level of Pearson's r-test is 0.000 and it is lower than minimum level of significance 0.05, also considering computed Pearson's value which is 0.280 and in confidence level 0.95 and degree of freedom 189, it is higher than Pearson's critical value 0.113, consequently, there is a significant relationship between low organizational complexity and employee empowerment of eastern Azerbaijan governorship. Hypothesis 2 test The relationship degree of organic organizational structure dimensions differs from employee empowerment of eastern Azerbaijan governorship. 20 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 H1: The relationship degree of organic organizational structure dimensions differs from employee empowerment of eastern Azerbaijan governorship. H0: The relationship degree of organic organizational structure dimensions doesn’t differ from employee empowerment of eastern Azerbaijan governorship. Table . Freidman test to determine the rating of organizational structure dimensions and employee empowerment of eastern Azerbaijan governorship Dimensions need to be successful formality Average rating 2.42 centralization complexity 1.12 2.46 Test Statistic N Chi- Square Df Asymp.Sig 190 221.928 2 0.000 As shown in table 19-4, since calculated X2 which is 221.928, is higher than X2 with degree of freedom 2 and 0 / 05 which equals 7.815 and significance level of Freidman test is lower than minimum level of significance 0.05. H1 is approved and H0 is rejected. Therefore, we can conclude that a significant difference exists between the relationship degree of organizational structure dimensions and employee empowerment of eastern Azerbaijan governorship. Given above table, we can rank the relationship of organizational structure dimensions and employee empowerment of eastern Azerbaijan governorship as follows: 1. Low organizational complexity 2. Low organizational formality 3. Organizational decentralization 6. CONCLUSION AND DISCUSSION In this section, regarding carried out analysis of statistical data in section 4, we first discuss conclusion and then offer recommendations. Obtained results from analyzing and testing research hypotheses show: Hypothesis 1: this hypothesis has been measured by means of 35 items which are combinations of 17 items related to independent variable of organizational structure in the form of three formality, centralization, and complexity components, and 18 items related to dependent variable indices of employee empowerment. Given obtained results that significance level of Pearson's test is lower than minimum level of significance, so the existence of significance relationship between organizational structure and employee empowerment of eastern Azerbaijan governorship is proved. Hypothesis 1-1: it has been measured using 25 items which are the mixtures of 7 items relating independent variable of low organizational formality and 18 items associated with dependent variable indices of employee empowerment. Considering results that significance level of Pearson's test is lower than minimum level of significance, thus the presence of significant relationship between low organizational formality and employee empowerment of eastern Azerbaijan governorship is confirmed. Hypothesis 1-2: this hypothesis is measured via 22 items which are the mixes of 4 items related to independent variable of organizational decentralization and 18 items associated to dependent variable indices of employee empowerment. Regarding obtained results that significance level of Pearson's test is lower than minimum level 21 Interdisciplinary Journal of Research in Business ISSN: 2046-7141 Vol. 2, Issue. 6, (pp.10- 24) | 2012 of significance, so, it's proved that there is a significant relationship between low organizational formality and employee empowerment of eastern Azerbaijan governorship. Hypothesis 1-3: it has been measured by 24 items which are the combinations of 6 items about independent variable of low organizational complexity and 18 items about dependent variable indices of employee empowerment. Given results that significance level of Pearson's test is lower than minimum level of significance, as a result, it's confirmed that there is a significant relationship between low organizational complexity and employee empowerment of eastern Azerbaijan governorship. Hypothesis 2: this hypothesis has measured the difference degree of relationship between organizational structure dimensions and employee empowerment of eastern Azerbaijan governorship. Freidman's test shows that a significant difference exists between the relationship of organizational structure dimensions and employee empowerment. Rating the relationship between organizational structure dimensions and employee empowerment of eastern Azerbaijan governorship has shown in table 1.5: Table 1-5. Rating the relationship between organizational structure dimensions and employee empowerment of eastern Azerbaijan governorship organizational structure dimensions rating low organizational complexity 1 low organizational formality 2 organizational decentralization 3 7. RESEARCH IMPLICATIONS In this research, we have offered recommendations as follows: As results show that there is a significant relationship between organic organizational structure and employee empowerment, that is, the more organizational structure is organic, the more employee involvement is in the organizational affairs; therefore, it's suggested that managers make arrangement to transform organizational structure from mechanic state into organic state. To achieve this, managers need to consider following solutions: 1. Reduce organizational complexity Complexity with mean 2.46 has the most relationship with employee empowerment, i.e. whatever organizational structure has low formality, and employee empowerment is higher. Therefore, it's suggested that in complex organizations, particularly space type, organization's managers make preparations that employees of any deputies have more freedom in decision makings of their operational area. As much as possible, they decrease the number of existing departments and job titles in the organization and reduce managerial levels between the lowest rank and the highest rank, in other words they try organizational to become more flattened. 2. Decrease organizational formality After formality, centralization with mean 2.24 has the most relationship with employee empowerment. It means that the more organizational structure is centralized, the less employee empowerment gets. Therefore, managers must avoid offering job standards about how to do work, don’t force employees to perform regular work standards and procedures; in organizations which their employees have high expertise, they abstain issuing frequent instructions and circulars about how to do work and adapting employees performance to job standards, don’t compel employees to observe formal administrative rules and regulations. 3. 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