HUMAN RESOURCE

MANAGEMENT
BPL 215; BBA 215; BTM 224; DTH 221; DBA 123; DPL 214

Employee Empowerment
by
Margaret Atiro
1
 EMPLOYEE EMPOWERMENT
Introduction
Concept of Employee Empowerment
Advantages of employee empowerment
Elements of employee empowerment
Steps for empowering employees
Process of Employee Empowerment
Employee Empowerment in Indian Scenario
Empowerment in Global Scenario
 Introduction
Organisations try to maintain discipline and
promote a favourable organisational climate.
Controlling employees and giving opportunities
to express dissatisfaction alone does not help in
motivating and fulfilling employees’ sense of
fulfilment.
It is important that employees are given a certain
level of authority in the organisation and
encouraged to participate in the decisions of the
management.
This is known as employee empowerment.
 Introduction
All over the world, organisations desiring to advance and
grow are discovering that by empowering the workers, the
productivity increases, innovations occur, quality
improves in leaps and bounds, problems are solved
proactively, employees are highly motivated and enjoy
high levels of self-esteem with a greater sense of
fulfilment.
Organisations are trying to implement innovative
measures and practices whereby employees are promoted
to take charge and are provided with an acceptable level
of autonomy.
The ‘Nestlé Continuous Excellence’ case mentioned
depicts the best employee engagement practices followed
in the organisation by focusing on giving employees more
 Introduction
 Nestlé Continuous Excellence’
 Nestle S. A is one of the world's leading nutrition, health and wellness company.
In 2009, the company launched the 'Nestle Continuous Excellence' initiative that
trains and empowers employees with a mind-set to 'Coach' and transfer the
benefit of experience and best practices to further improve performance. It
encourages its employees to foster an attitude of continuous learning and
facilitates this by providing them various opportunities to learn and enhance
their skills. The company engaged employees with trust and respect by
continuously sharing information through various forums, cross functional
activities, meets, dialogues and electronic media.
 Nestlé Continuous Excellence (NCE) was first implemented in eight factories at
three Nestle sites covering the production of confectionery, food & beverage and
pet care. All eight of the factories involved have achieved full ISO accreditations
for food safety, environment and the health and safety of their workers, allowing
staff there to push on with Nestlé Continuous Excellence projects that will
enhance this status.
 NCE focused on the engagement of all employees to help in achieving the overall
goals of the programme with the idea of ‘evolution not revolution’. The overriding
goal of NCE is to engage employees’ hearts and minds in a consumer-driven war
on waste. Its three main principles are:
 Introduction
 excelling in compliance: this includes complying with legal and strict Nestlé
internal requirements at all times;
 delighting the consumers: creating shared value and sustainability as a driver for
product development, and sharing the company aims and achievements with
consumers through brand and product communications;
 driving competitive advantage: for example, making progress towards ambitions
for zero waste and zero accidents, and improving water efficiency and energy
efficiency.
 3,000 Nestlé employees in UK became actively involved in bringing Nestlé
Continuous Excellence to life across eight factories, helping the business to
engage in new ways of thinking, problem solving and manufacturing.
 Staffs were encouraged to ensure standards are met in health and safety and
food safety, for example, while at the same time finding sustainable solutions to
production and logistics challenges.
 The staffs in the factories were motivated by the message of ‘One Team, Zero
Waste, 100% Engagement’ and follow a global Nestlé Continuous Excellence
toolkit.
 Introduction
 The results of the Nestlé Continuous Excellence project clearly showed its
success. The initiative had helped to reduce workplace injuries by 64%, consumer
complaints by 30% and costs by six million pounds.
 Workforce absenteeism was also considerably reduced
 In addition Nestlé had established a ‘Lead2Win’ programme which was designed
to establish winning practices among its managers, who are coached to gain a
broader understanding of the business and its goals.
 When Magdi Batato, Group Technical and Production Director for Nestlé UK &
Ireland, was asked about the NCE she says “Meeting Nestlé people on the shop
floor and hearing their passion and stories of what they have personally done
and achieved inspires me. They really own the business and it makes my day.
This Nestlé Continuous Excellence journey was a real discovery. It is not about
seeing new things but about seeing things with new eyes.”

 [Source: · http://www.nestle.com/CSV/OurPeople/OperationalEfficiency/Pages/ OperationalEfficiency.aspx

(Retrieved on 6th February, 2012)
 http://money.livemint.com/IID91/F100790/DirectorsReport/Company.aspx (Retrieved on 6th February,
2012)
 · http://www.igd.com/index.asp?id=1&fid=1&sid=69&tid=0&folid=0&cid=1868 (Retrieved on 6th February,
2012)]
 Concept of Employee Empowerment
They should not be burdened with ‘higher’ level of
responsibilities.
Such views, however, stand out-dated now.
To begin with, mass formal education has ensured
that even workmen are sufficiently educated.
They can understand managerial work, decision
making and also possess strong sense of
responsibility.
Political democracy, workers’ rights, human rights,
women’s rights and others have further consolidated
the visions and capabilities of modern workers.
 Concept of Employee Empowerment
“Workers are workers and managers are managers
and never shall meet the twain”. This saying perfectly
reflects the opinion of Fredrick Taylor – Father of
scientific management.
In all his sincerity and honesty, Taylor believed that
workers should only do the manual work under the
instructions of the mangers.
According to him they should not take any initiative
or solve problems or analyse a situation.
Many other subsequent management philosophers
shared such views and they stated that lower level
employees have no managerial skills, knowledge and
aptitude.
 Concept of Employee Empowerment
They should not be burdened with ‘higher’ level of
responsibilities.
Such views, however, stand out-dated now.
To begin with, mass formal education has ensured
that even workmen are sufficiently educated.
They can understand managerial work, decision
making and also possess strong sense of
responsibility.
Political democracy, workers’ rights, human rights,
women’s rights and others have further consolidated
the visions and capabilities of modern workers.
 Concept of Employee Empowerment
Employee empowerment in organisations
requires the following:
i) Sufficient knowledge, power and decision
making skills.
ii) Pleasant work environment to encourage
employees to give their whole hearted
cooperation.
iii) Appropriate authority and responsibility along
with accountability for the results.
iv) Training in managerial knowledge and tasks.
v) Environment where freedom to implement
decisions is accepted.
 Concept of Employee Empowerment
Empowerment in the context of employees refers
to power, authority, responsibility, resources,
freedom to make decisions and troubleshooting
in their professional work.
This transfer of authority is not a delegation
based relationship rather a trust based
relationship.
An empowered employee is self-disciplined, self-
controlled and self-directed.
In other words, the need to discipline, control
and direct employees no longer exists.
 Concept of Employee Empowerment
Rather than turning the employees into ill-
directed cannons it transforms them into highly
motivated, reliable and responsible allies who are
focused on making use of their full potential.
Empowerment also employs giving up control on
workers and allowing them to make decisions, set
goals, accomplish results and receive recognition
and rewards.
It is a process that allows a person to be what one
can be.
 Advantages of employee empowerment
More and more of organisations across the world
are encouraging employee empowerment.
It is very useful to promote organisational and
human relations in industry.
It helps in minimising disputes and conflicts
because now employees themselves are given
authority and accountability.
Advantages of employee engagement are:
i) It enhances the employees’ morale and
motivates them to contribute towards
organizational development positively.
Advantages of employee empowerment
ii) It has a positive impact on productivity that
results in higher wages for workers, higher profits for
the organisation and lower price of goods for the
customers.
iii) It reduces internal conflicts and ensures
industrial peace and harmony.
iv) It increases employee loyalty and commitment
towards the organisation.
v) It also reduces employee turnover as employees
do not prefer to leave organisations that provide
them with authority and freedom.
vi) It encourages implementation of innovative
ideas and concepts as the organisation does not
exercise undue control.
Advantages of employee empowerment
vii) It helps in discovering and utilising latent
human resource. This is the key to build great
organisations and a great nation.
viii) It strengthens labour–management
relationship.
ix) It satisfies social and esteem needs of workmen
and helps them to move towards self-actualisation.
x) It helps in building a nation through
entrepreneurship and economic development.
xi) Resistance to change is minimal as the
employees are given right to participate in the
decision making bodies.
 Elements of employee empowerment
Employee empowerment aims at providing industrial
democracy essential for promoting justice for
organisational employees.
It also promotes effective relationship between the
management and employees.
The concept of employee empowerment consists of certain
elements.
Major elements of concept of employee empowerment:
 i) Command over work environment
 ii) Proficiency and competence
 iii) Purposefulness
 iv) Belief system and trust
 v) Participation
 vi) Innovation
 vii) Information
 viii) Accountability
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
i) Command over work environment:
The workforce of the organisation must be
allowed to have a sense of command and authority
over their immediate work environment.
This will help them to understand the situation in
which they are supposed to perform their
responsibilities.
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
ii) Proficiency and competence:
The employee must be provided with complete set
of capabilities of successfully performing the
assigned task.
The employees must have confidence in their
performance.
They should not accept responsibility for making
decisions until they are confident of their abilities.
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
iii) Purposefulness:
The empowered employees must feel the
significance and importance of the task assigned
to them.
They should not only know the value of the work
for themselves but also to the organisation.
Every employee must know how that their task fits
into the larger scheme of things.
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
iv) Belief system and trust:
The employee must clearly understand the impact
of the decision taken on the performance and
effectiveness of the organisation.
The impact is felt when employees perceive that
their behaviour has caused important outcomes.
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
v) Participation:
Workers must be allowed to take initiative.
Proper training must be provided to the workers so
that they can take part actively and also are able to
express their suggestions and ideas.
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
vi) Innovation:
Management must encourage employees to try
out new ideas and make decisions that help in
finding new and improved ways of doing things.
Even when employees fail in their attempts,
management must encourage and support the
employees.
 Elements of employee empowerment
Major elements of concept of employee
empowerment:
vii) Information:
Employees must have adequate access to
information and resources that they need to
improve their talents.
viii) Accountability:
Empowered employee must be held responsible
for the results.
This helps the organisation to ensure that their
employees put in the best efforts and behave
responsibly to each other.
 Steps for empowering employees
Empowering employees and giving them the
right amount of authority and responsibility
should be done carefully and with proper
planning.
requires management to take a series of steps.
To make empowerment a reality the organisation
has to initiate definite activities that include:
 i) Participation in management
 ii) Delegation of authority
 iii) Encourage self-management
 iv) Promote job enrichment
 v) Build self-managed work teams
 vi) Creating intrinsic feedback mechanisms
 vii) Putting in placean upward performance appraisal
 viii) Promoting informal approach
 ix) Nurture supportive culture

 Steps for empowering employees
To make empowerment a reality the organisation
has to initiate definite activities that include:
i) Participation in management:
Management must provide room for employees to
participate in the major decisions taken by the
management.
This concept is an outcome of industrial
democracy.
Management decision making must take into
account the opinion, views, concerns and wisdom
of workmen.
 Steps for empowering employees
i) Participation in management……
It is a mental and emotional involvement of a
person in a group situation which encourages one
to contribute to goals and share responsibilities in
them.
The participation emerges from practices that
enhance the scope of employees’ share of influence
in decision-making at different levels of the
organisational hierarchy.
These levels are shop level, department level and
top level.
This participation flows from the willingness on
part of the workers to accept responsibility.
 Steps for empowering employees
ii) Delegation of authority:
This implies giving adequate authority and
responsibility to employees so that they can
undertake the assigned work to its fruitful
conclusion.
iii) Encourage self-management:
Exercising discipline on others is resented by both
– the enforcer as well as the enforced.
Therefore, this is a useless and wasted effort.
Self-discipline should replace such outdated
practices.
 Steps for empowering employees
iv) Promote job enrichment:
The jobs workers traditionally undertake are so
simple, repetitive, monotonous and fatigue-
inducing that their natural urge to be creative,
innovative and imaginative are firmly suppressed.
This denies them a happy and fulfilling work life.
Job enrichment is an addition of thinking,
decision-making, planning and controlling
component to their normal work.
v) Build self-managed work teams:
Self-managed work teams help in fostering a sense of
belongingness that induces motivation by
fulfilling social and esteem needs of workers.
 Steps for empowering employees
vi) Creating intrinsic feedback mechanisms:
Correct and continuous feedback is essential to
complete a work without any mistakes.
It is self-motivating because any correction is self-
induced and not forced from superiors.
 Steps for empowering employees
vii) Putting in place an upward performance
appraisal:
Upward performance appraisal begins with self-
appraisal of the performance of an employee.
It has been seen that self-appraisals are more honest,
critical and judicious than appraisals done by the
superiors.
Self-appraisals also eliminate the possibility of any
bitterness that employee may develop because of (real
or imagined) biased, malicious or vindictive appraisal
by their superiors.
Appraisal of the reporting officer helps the employees
to express their views and concerns about the
supervision and guidance given by them.
 Steps for empowering employees
viii) Promoting informal approach:
Formal approaches are fearsome, discomforting,
ritualistic and suppressing.
Informal approaches bring out the natural,
spontaneous and heart-felt actions that are
essential for completing a task with responsibility.
ix) Nurture supportive culture:
A supportive culture helps in overcoming fear of
failure, making mistakes, punishment and
embarrassment.
This helps in learning, taking initiatives and
making decisions.
 Steps for empowering employees
x) Encouraging goal-setting:
Most workers are not familiar with the concept of
goal-setting and hence they work without any aim
or objectives.
This is highly demotivating and demoralising.
Once they learn to set up worthwhile and realistic
goals for themselves, they work with greater
reason, understanding and also have the
satisfaction of completing a task.
 Steps for empowering employees
xi) Educating and training employees:
Realisation of capabilities is the roots of
empowerment.
Employees should be encouraged to further
educate themselves and should also be provided
with formal and informal training schedules to
learn new knowledge components, skills and
behavioural sets.
 Process of Employee Empowerment
Most researches are unanimous that employee
empowerment is a process.
Empowerment is a delicate and an evolving process.
However desirable it may be, it cannot be pushed,
forced or rushed up.
It is like saying that we cannot and should not break
an egg prematurely to set free the baby-bird inside it!
The process of empowerment, therefore, has to be
evolutionary – a step by step progression.
The degree of empowerment is determined by the
degree of participation and delegation. Leaders
empower their followers through a variety of
processes and means.
 Process of Employee Empowerment
They provide philosophy, principles and
inspiring goals using ideas and proposals, by
rewarding them formally and informally, by
appealing to their sense of honour and dignity
and by using inspirations to motivate them
towards autonomy and independence.
 Process of Employee Empowerment
Kreitner and Kinicki have explained the degree
of empowerment to pass through the following
stages:
i) Domination
ii) Consultation
iii) Participation
iv) Delegation
 Process of Employee Empowerment
Kreitner and Kinicki have explained the degree
of empowerment to pass through the following
stages:
i) Domination:
Historically the workers were always being
dominated by their employers.
At this stage the workers are helpless and are
under complete domination of the managers or
leaders.
They take no initiative, make no decisions and
experience no fulfilment.
 Process of Employee Empowerment
Kreitner and Kinicki have explained the degree
of empowerment to pass through the following
stages:
ii) Consultation:
At this stage the workers are allowed to come up
with their views and opinions.
Their ability to contribute to the thinking and
analysing process is recognised.
However, the managers merely consult them.
Although the decision remains solely the
prerogative of the managers, workers begin to
exercise some influence on decision-making.
 Process of Employee Empowerment
Kreitner and Kinicki have explained the degree
of empowerment to pass through the following
stages:
iii) Participation:
At this stage the workers graduate from
influencing decisions to actually being partners
in decision making with the managers.
They begin to share not just influence but
formal power with the managers.
 Process of Employee Empowerment
Kreitner and Kinicki have explained the degree
of empowerment to pass through the following
stages:
iv) Delegation:
This is an ideal stage where at their respective
level, workers have the power to make their own
decisions.
They become answerable and accountable to
themselves.
 Process of Employee Empowerment
Five stages in the process of employee empower-
ment as applied in the modern organisations are:
i) Stage 1:
In the first stage the reasons for powerlessness of
workers is identified using diagnostic tools.
This provides the managers with a clear and
deep understanding of the conditions leading
to a psychological state of powerlessness by the
employees.
Organisational factors that play a role in this
are supervision, reward system and nature of
job.
 Process of Employee Empowerment
Five stages in the process of employee empower-
ment as applied in the modern organisations are:
ii) Stage 2:
In the second stage, managerial strategies and
techniques are employed for empowerment.
Participative management is promoted by
providing training for goal setting, utilising
feedback mechanisms, installing contingent
and competence based rewards and by
enriching jobs.
 Process of Employee Empowerment
Five stages in the process of employee empower-ment
as applied in the modern organisations are:
iii) Stage 3:
In the third stage, the sense of helplessness that
remains within an employee is targeted to be
eliminated.
Self-efficacy information is provided to the
employees for improving their self-confidence and
self-control.
Workers are emotionally aroused and also
motivated to whole heartedly take up
responsibilities and at the same time feel
accountable for the responsibilities taken.
 Process of Employee Empowerment
Five stages in the process of employee
empowerment as applied in the modern
organisations are:
iv) Stage 4:
As a consequence of self-efficacy information,
workers experience empowerment.
Such an experience strengthens belief in personal
efficacy.
It also fuels the aspiration to have such
experiences again and again.
 Process of Employee Empowerment
Five stages in the process of employee
empowerment as applied in the modern
organisations are:
v) Stage 5:
This is a stage when ultimate empowerment is
reached.
Opportunities are created for creating a series of
employee self-efficacy promoting experiences in
the organisation.
The organisational environment is conducive for
employees to participate in major issues of the
organisation.
Employee Empowerment in Indian Scenario
Concept of employee empowerment in India was
contemplated well before Indian independence.
Our leaders of freedom struggle, particularly
Mahatma Gandhi was greatly concerned with the
kind of freedom that India would attain.
He did not want just the political freedom of
India.
He envisioned a freedom where every Indian –
rich or poor, men or women, upper caste or lower
caste, educated or uneducated, in main-stream or
marginalised – would enjoy the fruits of freedom.
Employee Empowerment in Indian Scenario
He wanted a freedom where every Indian would be
free to achieve self- actualisation.
In 1927, he proposed a concept of trusteeship,
according to which the managers and workers were
the trustees of the society and hence responsible for
the best possible administration of their
organisation.
He could foresee that poor, illiterate, insecure and
timid workers of India of that time were in no
position to fulfil such a possibility.
So while interacting with Indian industrialists and
managers he affirmed the need to empower the
workmen.
Employee Empowerment in Indian Scenario
Empowerment was enshrined in our constitution as
a philosophy propagated by Gandhi, Nehru and
Dr.Ambedkar.
They believed in an independent India where the
workers would rise to find their rightful place.
Nehru even believed that children of workers would
be educated and empowered and become the
managers in time to come.
Taking their wishes into consideration, participative
management was incorporated as a constitutional
commitment.
Employee Empowerment in Indian Scenario
Article 43-A of the constitution provides that the
State shall take steps, by suitable legislation or in any
other way, to secure the participation of workers in
the management of undertakings, establishments or
other organisations engaged in any industry.
Workers participation in management was made a
possibility through Industrial Dispute Act, 1947.
The act made it mandatory for all the large organisa-
tions to constitute working committees comprising
representatives of employers and employees. In 1956,
the Industrial Policy resolution stated that some
kind of joint consultation mechanism must exist in
business organisations to ensure industrial peace.
Employee Empowerment in Indian Scenario
A survey conducted in 1979 by National productivity Council
concluded that success rate of such mechanisms was 50% and that
too mainly in the private sector.
In 1990 a Bill – Participation of Workers in Mana-gement Bill was
adopted and according to which industrial enterprises must
constitute one or more ’shop-floor councils’ at shop floor level and an
’Establishment Council’ at the establishment level.
Each council is to have 50 percent representation from employees’
side.
Empowerment through collective bargaining has flourished in India.
It worked well especially when the representatives of both – the
employer and employee exhibited a wise and mature outlook.
Many organisations have left their traditional view that all employee
associations are enemies of the management.
In fact, organisations are promoting the growth & involvement of
employee associations and unions.
Employee Empowerment in Indian Scenario
Participation through suggestions scheme has also found takers in
India.
Two workers at TVS motors have received rewards worth INR.
22,00,000 (twenty two lakhs) each for making almost 6000
suggestions.
Most of their suggestions have resulted as one or the other benefit to
the organisation.
Gujarat Narmada Fertilizers Corporation has saved INR. 65,00,000
through 5000 suggestions received from their employees.
Workers have become better involved in the affairs of the
organisation by being shareholders in the company.
Indian organisations have welcomed the employee stock option
programme.
It is not only a mechanism of retaining employees but also helps
organisations to give power and authority in the hands of the
employees.
Employee Empowerment in Indian Scenario
It has proved to be an affirmative step in the case of promoting
good employer and employee relations.
The employees know that now they also benefit directly if the
company is in profit and hence have all the more reason to act
responsibly.
60% shares of Otto India, Kolkata are being held by its workmen.
40% shares of a Jullandhar based company (Sehgal Sanitary
Fittings) are owned by their employees.
There are many more examples of this nature.
Supreme Court in 1984 allowed workers to take over sick units
(Kamani Tubes and Kamani Metals and Alloys).
However, employee empowerment in India has not functioned to
the satisfaction of either the employees or the employers.
The traditional outlook of helpless workers is still dominant in
certain sectors.
Employee Empowerment in Indian Scenario
Some of the hurdles that organisations face to
implement employee empowerment are:
The prevalence of illiteracy of employees.
A vast majority of the workforce in India is illiterate or
not educated enough to take up responsibility.
Differences regarding the level of empowerment and
participation by the employees and the employers.
Delayz’; in the implementation of the suggestions and
ideas of employees.
Indian employers are generally averse to risk taking.
But, implementing innovative ideas involve a high
degree of risk.
Employee Empowerment in Indian Scenario
Inability of employers and management to transfer power to the
employees.
Employers and management hesitant to give power in the
hands of the employees.
Existence of group dominance in organisations.
Employees do not come together in a coordinated way for
getting the participative schemes implemented.
Employees in any organisation are divided in groups.
Each group of employees try to build pressure on the
management to get their interests fulfilled.
Prevalence of complex working conditions.
Working has become so complex that it has become difficult for
employees to participate successfully.
Lower level employees participate only in operating matters
and have difficulty in being involved in the policy matters of
the organisation.
Employee Empowerment in Indian Scenario
Employees prefer being supervised and controlled rather
than taking all responsibility.
The traditional outlook of employees in India is to
carry out the work as per instructions.
They are averse to the idea of taking up sole
responsibility for the work.
Existence of group dominance in organisations.
Employees do not come together in a coordinated way
for getting the participative schemes implemented.
Employees in any organisation are divided in groups.
Each group of employees try to build pressure on the
management to get their interests fulfilled.
Employee Empowerment in Indian Scenario
Prevalence of complex working conditions.
Working has become so complex that it has become
difficult for employees to participate successfully.
Lower level employees participate only in operating
matters and have difficulty in being involved in the
policy matters of the organisation.

Thus, we can see that the concept of employee

empowerment has been accepted in Indian scenario.
It has found its roots but is still in the stage of growth.
Organisations have to find methods of resolving the
difficulties and educating and training their employees for
them to be fully empowered.
 Empowerment in Global Scenario
One of the finest examples of empowerment is quality
circles.
Quality circles are a group of employees in the same
work area who voluntarily meet regularly for about an
hour every week to identify, analyse and resolve work
related issues with a view to cut down costs, enhance
quality and improve productivity.
The concept of quality circles originated in Japan, where
Prof. Ishikawa first developed simplified tools to analyse
and solve quality and productivity related issues in such
a ways that even workers could understand and use
them.
He thereafter trained workmen in these techniques.
 Empowerment in Global Scenario
Quality circles were formed where workers, without any
supervision began to improve work operations.
This not only helped the organisations in cost reduction
and improved quality and productivity but even workers
could experience a feeling of accomplishment and
importance.
Japan won its war of quality and productivity with US
and Europe mainly because of its quality circles.
Workers participation in the management has taken
different shapes in different countries.
In Scandinavian countries, workers never take orders
from their managers.
Only their representatives at board meetings can give
them instructions.
 Empowerment in Global Scenario
These are developed and highly educated countries, also
with high human index.
This model has been quite successful there.
In USA, collective bargaining has been the model for
workers’ participation.
It has been found to be useful by the management as
well as the workers.
One reason for their success is that agreements arrived
at through collective bargaining are legally binding.
In communist countries such as former Soviet Union,
workers participation in the management was at
national political level where their representatives were
involved in making policy decisions related to them.
 Empowerment in Global Scenario
In United Kingdom, workers’ participation in
management has been in the form of labour-
management consultation and cooperation.
At the same time in Germany, the common wisdom was
used to form co-determination schemes.
In Japan and Korea quality circles have been the
preferred mode to ensure workers’ participation in
management.
The models may differ from country to country
depending on their sociopolitical and socio-cultural
forces but in most places the factors affecting the success
of all such models have been found to be more or less
common.
 Empowerment in Global Scenario
Some of these factors are:
The management and employees should be enlightened
enough to ensure a free and frank exchange of thoughts
and opinions.
They should possess a high sense of responsibility.
Both the participants should have complete faith in the system.
Such models should be widely publicised so that
workers in particular are aware of them and are well
versed in making use of such mechanisms.
Objectives of such drives should be realistic,
comprehensible and clear.
Form, coverage, extent and level of participants should
be accordance with the response to the specific needs of
a situation.
 Empowerment in Global Scenario
Some of these factors are……
Programme for education and training should be
developed very comprehensively.
Transparency must be maintained, particularly by the
managers.
The workers should take up responsibilities for the
outcomes and shake away their traditional guise of
victimhood.
A strong and effective two-way communication should
be put in place.
We can see that globally, organisations have now
accepted the employees as a partner to their success and
not as adversaries a necessary evil.
 Empowerment in Global Scenario
Some of these factors are……
Organisations have truly realised that it is the
empowered employees who can be the driving force of
the organisation towards achieving its goals and targets.
Where employees are empowered, there the
organisation will move and take responsibilities
voluntarily and ensure that every effort is taken towards
the growth of the organisation globally.
 Summary
Empowerment as an issue exists for workers and
empowerment makes a difference in the workers’ level of
participation and decision making.
Fredrick Taylor, father of scientific management,
believed that workers should only do the manual work
under the instructions of the mangers, implying
empowerment was not desirable.
Empowerment in the context of employees refers to
power, authority, responsibility, resources, freedom to
make decisions and trouble shooting in their
professional work.
This transfer of authority is a trust based relationship.
 Summary
Employee empowerment in organisations requires
providing the workers with sufficient knowledge, power
and decision making skills, pleasant work environment,
appropriate authority and responsibility, training them
in managerial knowledge and tasks, freedom to
implement decisions, making them accountable for the
results.
Empowerment enhances productivity and quality,
reduces conflicts, motivates workers, increases employee
loyalty, encourages implementation of innovative ideas,
improves labour-management relationship and helps in
building the economy of a nation.
 Summary
Elements of empowerment are, command over work
environment, proficiency and competence,
purposefulness, belief system and trust, participation,
innovation, information and accountability.
Activities to promote empowerment are promoting
participation in management, delegating authority,
promoting self-management, promoting job enrichment,
building self-managed work teams, creating intrinsic
feedback mechanisms, putting in place an upward
performance appraisal, promoting informal approach,
nurturing supportive culture, educating and training
employees.
Kreitner and Kinicki have explained that the degree of
empowerment has to pass through four levels –
domination, consultation, participation and delegation.
 Summary
Process of empowering employees goes through the
following stages:
identifying reasons for powerlessness, applying appropriate
managerial strategies and techniques, providing self-
efficacy information, experiencing strengthened belief
in personal efficacy and habit formation.
Workers participation in management was envisioned by
Mahatma Gandhi, Dr. B. R. Ambedkar and Jawaharlal
Nehru.
It is a constitutional commitment. (Article 43-A).
Workers participation in management was made a
possibility through the Industrial Dispute Act, 1947.
Workers participation in management has taken different
shapes in different countries.
 Summary
In USA, collective bargaining has been the model for
workers’ participation.
In United Kingdom, workers’ participation in
management has been in shape in the form of labour-
management consultation and cooperation.
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