Professional Documents
Culture Documents
Empowerment Performance and Operational Uncertainity Wall 2002
Empowerment Performance and Operational Uncertainity Wall 2002
John L. Cordery
Department of Organisation and Labour Studies, University of
Western Australia
Chris W. Clegg
Institute of Work Psychology, University of Sheffield, UK
There is little doubt that empowerment is now being taken more seriously
than ever before by practitioners, and that it has become a core theme in
contemporary strategic thinking as well as a prescription for good manage-
ment practice. This is illustrated by the view of a CEO cited by Argyris
(1998): “No vision, no strategy can be achieved without able and empowered
employees” (p. 98). More systematic evidence comes from a recent survey of
modern manufacturing practices (Waterson, Clegg, Bolden, Pepper, Warr,
& Wall, 1999). Data from a representative sample of 564 UK firms showed
that 72 per cent had adopted empowerment initiatives, typically had intro-
duced these within the last few years, and planned to develop them further.
Survey research carried out in the United States by Lawler and colleagues
(Lawler, Mohrman, & Ledford, 1992, 1995) and Osterman (1994) provides
additional evidence of the rapid rise in such initiatives. As Hardy and Leiba-
O’Sullivan (1998) observe, “the popularity of this latest approach has led
some writers to hail the 1990s as the ‘empowerment era’ ” (p. 452).
QUESTIONS ARISING
The current interest in empowerment raises many questions. One concerns
why it should be so popular with practitioners at this point in time. Explana-
tions that have been offered point to several factors, including: the need
for empowerment as an adjunct to other contemporary initiatives such as
downsizing and delayering; its compatibility with yet other modern organ-
isational practices such as total quality management, just-in-time, lean pro-
duction, and Business Process Re-engineering; the need for flexibility in the
face of more variable and faster changing operational requirements; and the
increased education and expectations of the workforce (e.g. Wilkinson, 1998).
Other questions focus on whether current interest in empowerment is mainly
at the level of rhetoric rather than reality (e.g. Argyris, 1998), and whether
in practice it involves any meaningful transfer of power to staff at lower
levels within organisational hierarchies or simply an increase in demands
and responsibilities (e.g. Hardy & Lieba-O’Sullivan, 1998).
An especially important question, however, concerns the general applic-
ability of empowerment as a mechanism for achieving improved work system
performance. In common with many other popular change movements,
from scientific management through human relations, T-groups, TQM, and
JIT (Sitkin, Sutcliffe, & Schroeder, 1994), empowerment is advocated as a
near-universal recipe for organisational success (Wilkinson, 1998). Our thesis
in this essay is that there are already strong grounds for suggesting that this
universalistic assumption is incorrect; that the effectiveness of empowerment
practices will be contingent on context, and more particularly on the degree
of operational uncertainty that prevails. Moreover, we argue that this pro-
position generalises across the various levels of analysis and areas of applica-
articulated within organisation theory. The argument has its roots in the work
of Burns and Stalker (1961, 1994). They proposed that mechanistic structures
are appropriate for organisations operating in relatively certain or predictable
environments; but that more organic approaches are required under more
uncertain and complex conditions. Since “mechanistic” structures are defined
as those involving formal relationships, centralised decision making and
routinised tasks, and “organic” structures as those characterised by more
flexible, decentralised, and informal practices, the argument bears directly
on contemporary views of empowerment.
Like other early theorists (e.g. Galbraith, 1977; Mintzberg, 1979;
Thompson, 1967; Woodward, 1965), Burns and Stalker took an evolutionary
perspective. They were attempting to explain the existence of different
organisational forms as adaptations to prevailing levels of environmental
uncertainty. However, this developed to the more general argument that
there is choice, and failure to match the form of the organisation to its
context would result in sub-optimal performance (Clegg, 1984; Gilbert, 1996;
Lawrence & Lorsch, 1969; Perrow, 1967). Thus the basic argument is that em-
powerment strategies are effective under conditions of greater uncertainty,
but that more bureaucratic, routinised, and low discretion forms of work
organisation will be effective under more predictable operating circumstances.
It is interesting to record that it is not only within organisation theory
that this contingency view has been put forward. Aoki (1990), building on
Williamson’s (1985) new economics, distinguishes between two forms of
organisation: the H (hierarchical) and J (Japanese) modes (see Taira, 1996).
The H-mode corresponds to traditional mass production, whereas the J-mode
reflects lean production (see Womack, Jones, & Roos, 1990), which incor-
porates much stronger elements of empowerment. Aoki’s theory concerns
the relative effectiveness of the two modes under different conditions. The
traditional, low empowerment, H-mode is predicted to be relatively better:
But:
Assuming that extremely volatile environments are the exception rather than
the rule, Aoki’s position equates to that of the more familiar organisation
theorists.
Returning to the literature on organisation theory, it should be noted that
subsequent elaboration of this basic contingency view focused mainly on
different sources and kinds of uncertainty, such as those stemming from
market demands, technology, materials, or the inherent nature of the task
(e.g. Brass, 1985; Duncan, 1972; Galbraith, 1977; Lawrence & Lorsch, 1969;
Mintzberg, 1979; Thompson, 1967). This diversity of definitions and foci of
uncertainty within the literature served to mask the underlying commonality.
When looked at from the point of view of how uncertainty is manifest within
the organisation, however, they all have the same implication: whatever the
source, uncertainty results in variability and lack of predictability in work
tasks and requirements, including what has to be done and how to do it.
This core component to the notion of uncertainty is well captured by
Perrow’s (1967, 1970, 1979) analysis. He proposed that the market environ-
ment, raw materials, technology, and other factors may all be considered
in terms of their effect on the extent to which tasks can be programmed or
“routinised”. Where there is frequent change to products, variability in raw
materials, and unreliability in the technology, the opportunity to routinise
work will be low because of the “number of exceptional cases” encountered.
Correspondingly, there will be low “problem analysability”, in the sense that
task requirements will be difficult to specify precisely and fully to understand.
Perrow’s perspective has its parallel in the concept of “variance” as used
in socio-technical systems theory. Cherns (1976) defined a relevant variance
as “any unprogrammed event” that “critically affects performance” (p. 787).
The “socio-technical criterion” then formulated was that “variances, where
they cannot be eliminated, should be controlled as near to their source as
possible” (p. 787). It is at this level of analysis, concerned with processes
internal to the organisation, that the various perspectives on uncertainty
evident in the literature coalesce. We use the term “operational uncertainty”
to denote this common core.
Thus a long tradition of organisation theory, and associated empirical
work, already informs us that, at the organisational level, the effectiveness
of empowerment is contingent on operational uncertainty.
At this level, work design theory has sought to identify important elements
of individual and group tasks, duties, and responsibilities that give rise to
employee psychological empowerment, and thus we now consider how
operational uncertainty has been treated in this domain.
The initial point to make is that leading work design theories do not
explicitly include uncertainty as a contingency. For example, the concept
does not feature at all in the Job Characteristics Model (Hackman & Oldham,
1976), where only individual differences (ability, growth need strength, and
context satisfactions) are considered as moderators; and uncertainty is only
implicit (i.e. the concept of “variance” and “the socio-technical criterion”)
within socio-technical systems theory (Cherns, 1976). These theoretical
approaches, concerned with individual and group work design respectively,
are universalistic in nature, assuming that enhanced autonomy, feedback,
or other work design characteristics will promote performance irrespective
of external circumstances. In turn, this has encouraged an undifferentiated
application of these theories in different technological and organisational
contexts.
Over the years, experience with frequent failure in implementing theory-
specified work redesign, and the observation that the relationship between
job redesign and job satisfaction is found more consistently than between
job redesign and performance (Mitchell, 1997), has led to a broad acknow-
ledgement that features of the organisational context play a central role in
the success of empowering work redesign strategies (e.g. Oldham & Hackman,
1980; Cohen, Ledford, & Spreitzer, 1996; Cohen & Bailey, 1997). Some of
this literature has specifically identified operational uncertainty (or similar
construct) as a key contextual variable (e.g. Clegg, 1984; Cummings &
Blumberg, 1987; Herold, 1978; Pearce & Ravlin, 1987; Slocum & Sims, 1980).
Thus, Pearce and Ravlin (1987) identify “process uncertainty” as a precondi-
tion for effective self-managing teams, while Cummings and Blumberg (1987)
argue that jobs need to be designed for external control when “technical
uncertainty” is low, but for devolved decision making where such uncertainty
is high. These arguments have run in parallel to the mainstream literature
on work redesign and empowerment, and have had little impact on work
design research. Recent empirical findings, however, suggest operational
uncertainty is indeed a key contingency in work redesign. In a study of
individual job redesign for operators of advanced manufacturing technology,
Wall, Corbett, Martin, Clegg, and Jackson (1990) showed that increasing
“operator control” resulted in substantial performance gains for systems
In settings in which the task is poorly understood, it may not only be imposs-
ible to specify appropriate measures, but it may also be impossible to conduct
the necessary exploratory, high-risk work without making an irreducibly large
number of errors. . . . In these fundamentally uncertain contexts, continuous
improvement should focus on experimentation rather than on decreasing error
rates. (p. 545)
several themes emerge across the studies. At their root, most of the studies
focus on enhancing the skill base of employees through HR activities such as
selective staffing, comprehensive training, and broad developmental efforts
like job rotation and cross-utilisation. Further, the studies tend to promote
empowerment, participative problem solving, and teamwork with job redesign,
group-based incentives, and a transition from hourly to salaried compensation
for production workers. (p. 839)
HYPOTHESES 1 AND 2
So far we have shown how disparate literatures converge in suggesting
operational uncertainty to be a generic contingency variable affecting the
relationship between empowerment and performance. Our arguments to
date can be summarised in the form of the following general hypotheses:
MECHANISMS
In a sense, the above hypotheses are the outcome of an exercise in document-
ing the prevalence of the view that the relationship between empowerment
and performance is contingent on operational uncertainty. The argument
becomes that much more credible if one can also explain why this should be
the case. If we consider empowerment at the level of the individual or work
group, several complementary mechanisms can be identified. For our purpose,
Action Theory’s arguments are not based on the grounds that control is a
prerequisite for democracy at work. Nor is the basis a humanistic type of
psychology. It is also not a motivational theory as the one by Hackman and
Oldham (1980). Rather, Action Theory’s idea is that people who have control
can do better because they can choose adequate strategies to deal with the
situation. For example, they can plan ahead better and are more flexible in the
event that something goes wrong. Skills can only be acquired in a lifelong
process where there is control at work. (p. 319)
any motivational benefits they may derive from having enriched jobs . . .
employees are in a better position to see the relationships between specific
actions and their consequences” (p. 268). Lawler (1992) offers the same
general argument, suggesting that empowered forms of work design are
effective:
of giving them important areas of decision making, and scope for learning.
Conversely, where there is little uncertainty, the knowledge requirements
of the work are low, and there is consequently little scope for knowledge
development and less opportunity to offer employees real empowerment. It
follows that the effects of empowerment on performance will increase as the
degree of production uncertainty increases.
HYPOTHESIS 3
From the above arguments we can propose a third hypothesis:
Elaboration
The elaboration concerns levels of performance under conditions of high
compared with low operational uncertainty. Operational uncertainty is
defined in terms of the number and difficulty of problems, key variances or
exceptions, that have to be accommodated. It follows that where these prob-
lems are high, performance will suffer, in that a greater proportion of the time
will be spent on overcoming operational difficulties and less on output per
se. Thus the effect of empowerment under conditions of high operational
uncertainty will be to reduce the underlying performance deficit which is
characteristic of work under these conditions relative to work under low
levels of operational uncertainty. In other words, the interaction between
empowerment and uncertainty represented within Hypotheses 1 and 2 is of
a particular ordinal form rather than being a disordinal one.
The value of this elaboration is that it provides a more specific and thus
more readily refutable hypothesis in the special case of studies where per-
formance can be directly compared across different conditions of operational
uncertainty, such as where organisations keep the same production technology
but change to making a greater diversity of products.
More generally, this elaboration helps to explain the apparent contradic-
tion between the traditional simplification approach to work design and more
recent positions on work redesign and empowerment. The former hold that
the route to high performance is through simplifying work and disempowering
employees, whereas the latter take the opposite view. In fact they can be seen
to be addressing different issues. The simplification approach, exemplified
by Taylor’s (1911) Scientific Management and by Henry Ford’s development
of the production line, focuses on structuring the situation so as to minim-
ise operational variability and uncertainty. This is well illustrated by Ford’s
often-mentioned comment to the effect that customers may have any colour
of car as long as it is black. In contrast, those recommending empowerment
appear to be focusing on conditions where operational uncertainty is high,
and recommending ways to deal with this more effectively. The consistency
between these positions is implicit in the socio-technical principle mentioned
earlier that “variances, where they cannot be eliminated, should be con-
trolled as near to their source as possible” (Cherns, 1976, p. 787).
Delimitations
Our discussion so far has taken a particular view of empowerment, which
can now usefully be made more explicit. We have defined empowerment
practices in terms of the decision making authority, or autonomy, of em-
ployees over the execution of their primary tasks. Clearly, it is also possible
to empower employees in other respects, for example by expanding their
responsibilities for production scheduling in their own work area, in the
allocation of tasks, or in the selection and training of staff. Our hypotheses
relate to the former circumstance, which may be termed “core task empower-
ment”, not to the latter which we call “role empowerment”.
This leads us into another delimiting factor, concerned with performance.
Our focus throughout has been on performance of the core task. This should
be distinguished from wider views of effectiveness which incorporate notions
of productivity and employee attitudes. Let us take productivity first, defined
as the total unit cost of output. It is quite likely that core task empowerment
initiatives will produce some productivity benefit even under conditions of
relatively low operational uncertainty, to the extent that they reduce the call
on support staff and thus save costs in that domain. We anticipate such
gains to be relatively modest, however, since, where there is low operational
uncertainty by definition the opportunities for such empowerment are limited
and pre-existing demands on support staff are low. The key point is that
although core task empowerment may have little direct impact on perform-
ance per se under conditions of low operational uncertainty, it is unlikely
to have a negative impact and may have marginal benefits for productiv-
ity. Role empowerment, in contrast, offers potential benefits regardless of
the level of uncertainty, to the extent that it involves employees taking on
self-managing tasks that otherwise would require the services of more
costly support staff. Thus empowerment more generally may enhance pro-
ductivity, even though we hypothesise that the performance effects of core
task empowerment will be limited to circumstances of high operational
uncertainty.
Finally, we should not avoid the question of employee attitudes. There is
already considerable evidence that more empowered forms of work, be this
concerned with the core task or the wider work role, promote satisfaction
and well-being at work (e.g. Parker & Wall, 1998). Nevertheless, we should
not neglect recent evidence suggesting that even in this respect the effect of
core task empowerment on employees’ affective reaction is moderated by
operational uncertainty (Wright & Cordery, 1999).
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