YOU HAVE heard of social empowerment, economic empowerment and even political empowerment. But have you heard of employee empowerment? The past decade has seen the rise of a concept called participative management. It is a detour from the traditional top-down hierarchical system of control, turning the management pyramid upside down. Organisations have begun to realise that empowered employees are the key to unlocking the latent potential.
Jack Welch, CEO of GE says, "If you want to get the benefit of everything employees have, you have to free them - make everyone a participant."
Employee empowerment calls for decentralising the decision-making process and delegating responsibility to the lowest levels of the organisation. This creates a dynamic structure with a creative and balanced distribution of power. Result: a motivated and committed workforce.
The Delta Airport Inn is an example of this participative management model. The organisation recently empowered its front desk clerks to give away free hotel nights if they failed in their promise of providing guaranteed housekeeping.
Putting the into action
It is not enough to just say `employees should participate'. The management must build avenues that allow workers to take part in the decision-making process. The policies of the company and its organisational structure have to be modified to give its staff opportunities to participate. However, this is not an overnight process. Change takes time to settle. Often, the employees will be hesitant and slow in adjusting to their new responsibilities. They must be encouraged and if necessary, coaxed to start making choices. One way to do this is to align their individual goals with those of the company and ultimately, put some faith in their ability. Workers must be trained to enhance their problem solving and time management capabilities. Educating workers about the company policies and developing their skill sets is essential, if the concept is to work.
Letting them deal with day-to-day problems, such as resolving customer complaints, troubleshooting, etc; will help them slip into their new role easier. Proper communication channels are vital. It keeps employees updated about facts and creates a means for personnel to air their ideas and suggestions.
Take for instance, General Motors. The gargantuan company empowered its employees by letting its work teams manage assembly lines. They are also encouraged to make suggestions on how to improve the design process.
Responsibility, authority and accountability should go hand-in-hand. The management should have foresight and guide its employees in the right direction. It is important to remember that the management needs to leave some room for error. It is an inevitable consequence of allowing employees to make their own decisions, but in the long run, it is a strategy that pays off.
Such structural changes also mean that the middle managers should be prepared to relinquish their control, as this concept will definitely cut away at their authority.
The win-win advantage
"Empowerment pays back exponentially. It is essential for the holistic growth of any organisation that the employees are allowed to think independently," says management analyst, M L Taneja.
Empowering employees will give the management the space to focus on high-level decisions. They can harness individual capabilities and capitalise on their creativity and energy. It will reduce absenteeism, staff turnover and improve overall performance.
In Ralston Foods, empowerment helped increase productivity by 55% and reduce costs by 5% per year.
Employee empowerment also generates customer satisfaction as the staff is authorised to meet their needs at the point of purchase. Chris Bogan, CEO of Best Practices LLC says, "Employees who are empowered to react to customer preferences will keep clients happy and drive repeat business." This creates a healthy work culture and imparts a competitive advantage to the organisation.
Several companies like Intel, Ford, Scandinavian Airlines, Harley-Davidson, NCR, Goodyear, and Conrail have integrated employee empowerment as part of their management structure. In fact, Great Plains won two awards recently - `Exceeding Customer Expectations' and `Motivating and Retaining Employees'. The basis on which it received the accolades were its `smart, happy and empowered employees'.
Departing from the traditional command-and-control system is bound to be a long and arduous journey. However, ethical governance is a pillar of development. Choosing the `road less travelled' will indeed prove to be a wise decision!
Jack Welch, CEO of GE says, "If you want to get the benefit of everything employees have, you have to free them - make everyone a participant."
Employee empowerment calls for decentralising the decision-making process and delegating responsibility to the lowest levels of the organisation. This creates a dynamic structure with a creative and balanced distribution of power. Result: a motivated and committed workforce.
The Delta Airport Inn is an example of this participative management model. The organisation recently empowered its front desk clerks to give away free hotel nights if they failed in their promise of providing guaranteed housekeeping.
Putting the into action
It is not enough to just say `employees should participate'. The management must build avenues that allow workers to take part in the decision-making process. The policies of the company and its organisational structure have to be modified to give its staff opportunities to participate. However, this is not an overnight process. Change takes time to settle. Often, the employees will be hesitant and slow in adjusting to their new responsibilities. They must be encouraged and if necessary, coaxed to start making choices. One way to do this is to align their individual goals with those of the company and ultimately, put some faith in their ability. Workers must be trained to enhance their problem solving and time management capabilities. Educating workers about the company policies and developing their skill sets is essential, if the concept is to work.
Letting them deal with day-to-day problems, such as resolving customer complaints, troubleshooting, etc; will help them slip into their new role easier. Proper communication channels are vital. It keeps employees updated about facts and creates a means for personnel to air their ideas and suggestions.
Take for instance, General Motors. The gargantuan company empowered its employees by letting its work teams manage assembly lines. They are also encouraged to make suggestions on how to improve the design process.
Responsibility, authority and accountability should go hand-in-hand. The management should have foresight and guide its employees in the right direction. It is important to remember that the management needs to leave some room for error. It is an inevitable consequence of allowing employees to make their own decisions, but in the long run, it is a strategy that pays off.
Such structural changes also mean that the middle managers should be prepared to relinquish their control, as this concept will definitely cut away at their authority.
The win-win advantage
"Empowerment pays back exponentially. It is essential for the holistic growth of any organisation that the employees are allowed to think independently," says management analyst, M L Taneja.
Empowering employees will give the management the space to focus on high-level decisions. They can harness individual capabilities and capitalise on their creativity and energy. It will reduce absenteeism, staff turnover and improve overall performance.
In Ralston Foods, empowerment helped increase productivity by 55% and reduce costs by 5% per year.
Employee empowerment also generates customer satisfaction as the staff is authorised to meet their needs at the point of purchase. Chris Bogan, CEO of Best Practices LLC says, "Employees who are empowered to react to customer preferences will keep clients happy and drive repeat business." This creates a healthy work culture and imparts a competitive advantage to the organisation.
Several companies like Intel, Ford, Scandinavian Airlines, Harley-Davidson, NCR, Goodyear, and Conrail have integrated employee empowerment as part of their management structure. In fact, Great Plains won two awards recently - `Exceeding Customer Expectations' and `Motivating and Retaining Employees'. The basis on which it received the accolades were its `smart, happy and empowered employees'.
Departing from the traditional command-and-control system is bound to be a long and arduous journey. However, ethical governance is a pillar of development. Choosing the `road less travelled' will indeed prove to be a wise decision!
PAYAL AGARWAL
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