Impact of Employee Empowerment on Employee's Performance in the context of Banking

Sector of Pakistan

ASIA AYAZ

BBA (Hons) Student

University of Education, Multan

ABSTRACT

The main purpose of this study was to determine the impact of employee Empowerment on employee performance. The
result is a vivid picture of the relationship between empowerment and employee performance. The statistical population
of this study is the banking sector, covering 100 employees at four banks and data was collected through two standard
questionnaires. The correlation coefficient was used by "analysis of variance, ANOVA and SPSS" for data analysis.
Empowerment is determined by the significant labour and skill. The results showed positive employee empowerment
relationship with not only interesting work, but also to competition. Public sector banks and private sector banks can use
employee empowerment as an important element for better employee performance.

Keywords: employee empowerment, employee performance, meaningful work, Competition.

1. INTRODUCTION

Human resources are the most important asset of modern organizations. These are skills that cannot be copied by rivals.
Empowerment is essentially the authority and responsibility given to employees. Empowerment enables employees to
use or apply their own abilities and creativity by accepting responsibility for the effort. The best result in the training of
employees involved is job performance. The employee empowerment has to do with the modest environment today
where employees' knowledge is very important and institutions and several moved with the provisions of dispersed
organization, biological type (K. Baird and H. Wang). Empowerment is a continuous process, very nice place in a dynamic
environment, many binding obligations related to work at different levels of study (Robbins, crino and Fredendall LD).
Thus, establishments with employees to information, skills, capabilities and commitment to the implementation of their
planned activities were presented appreciation, because more is expected to help the association achieve its goals and
be more active (and Acquaah Tukamushaba, 2009). The period to take the risk, growth and modification is considered
the involvement of staff (Gretchen Quinn, 1997). Empowerment also be described as "a multidimensional social measure
that helps people to get over their mechanism of individual lives" (Page and Czuba, 1999). Empowerment has to do with
control and ability to make judgments (Kilton, 2003) is allowed. Zeithaml et al. (1988) described that empowerment
increases job satisfaction and overcomes persons anxiety. Singh (1993) that originated Empowerment reduces
reluctance among workers customer contact person. Allow Rafiq and Ahmed (1998), trained workers when the idea of
consuming problems, as they can act freely on customer objections without discussing the difficulties in the top level of
management. The employee empowerment, it is linked to confidence, inspiration, decision making and violation of
internal borders between the organization and employees that "they" us verses. (Ongori2009).

Although the production works well, but there is still a need to improve the service and financial sectors. This document
white financial sector of Pakistan is considered the backbone of the economy. So, this study aims to explore the impact
of employee empowerment on the performance of the employee in the context of the banking sector in Pakistan.

1.1: Objectives:

The objective of the research is to make a link between empowerment and employee performance. These include:

1) To determine the impact of a significant work on performance of employees.

2) To determine the impact of competition on employee performance.

1.2: Research Questions:
1) What is the relationship between the useful work and employee performance?

2) What is the relationship between employee skills and performance of employees?

2. Literature Review:

2.1 Empowerment:

Klagge (1998), is the empowerment and action of the division of responsibilities of workers and capacity building for
them. Allow Vogt and Murrell (1990), empowerment is the period of purification capacity decisions of workers on
attendance, participation, preparation, learning and teamwork. Kanungo and Conger (1988) describe empowerment as
an inspiring thought and described empowerment as improving self-competency of worker. Velthouse and Thomas
(1990) empowerment clear improving the vital work of inspiration that effects the thoughts or work evaluations, ideas
that redirects the employment of a person. Clutterbuck and Kernaghan (1994) empowerment clear that the "time to
inspire and empower employees to take individual responsibility in the name of some improvements as part of their
recorded work as a contribution to achieving the objective global association ". Empowerment also Sibson (1994), as
defined, for example," capacity allocation by the leaders of all workers in general about the practices and work
processes. "Ayupp and Chung (2010) emphasizes that the empowerment needs to understand management practices
that take a position statement and distribution of information, authority, and the prices of the association. Menon
(2001) describe empowerment as "the power to decision before the scale of management (common) "summed up the
spirit of empowerment.

Determinants of Empowerment based on Literature:

There are two determinants of literature-based empowerment

1) The importance of work:

2) Competition:

1) The importance of the work:

The meaning is the value that you put in the position of a particular work, created in the values and the specific
principles (Velthouse and Thomas, 1990) of the person. That also it involves an adjustment between the work and role of
principles, rules and specific actions (short and North, 1990). The meaning is the internal working value individual ideas
and thought in work (Abdullahi, 2005). States to say to the "mandatory penalty of a working fights, negotiated with the
standards or principles" (Thomas and Velthouse 672 1990). A modern study by signing mention Towers Perrin (2003)
specific to specify this person's work capacity are important not admire the individual workers, but an expert by the
significant work and workers can deliver value to society .

2) Competition:

Competition is the talent or the perfection of the individual to get a job or assigned functions. Synthesis (1987) describes
the competition as confidence in the ability of the person to perform actions with talent. An individual can attain job
responsibilities and functions efficiently is considered competition (Abdullahi, 2005). Competition and delineate the
efficacy committed to the fight itself and faith in the ability of the effort to achieve with media activities. And (Thomas
and Velthouse 1990, p.672) "The figure is the point at which an individual can perform work activities freely once he or
she struggle." The competition is evident that 'the point at which a person may engage in employment activities
commonly while he or she is '' (Thomas and Velthouse 1990 672). First is calculated and evaluated by McClelland in the
1970s, skills or basic characteristics were projected as important interpreters of the performance and achievements of
workers and the key, such as the possibility of a hypothetical person, and information as happy as specified by test
scores or grades (Lucie and Lepsinger, 1999; McClelland, 1973) .
1.2 Performance of the employee:

Performance as a specific behaviour is a boutique variables of work and the status (such as workload, executive,
company, etc.) and in terms of responsibilities of the company's performance in a range of workers is set defined
activities individuals exhibit their works (Hosseinian et al, 2007). The performance is the level of how actions contribute
to determining (Akal, 1992). In other words, the performance is "the degree of awareness of the resolution" or "result of
the level of action." Showing how the level is made or the target resolution (Schermerhorn et al., 1985). Campbell
describes the performance, such as the appropriate behaviour for the determination of the association, it may be limited
to the level of participation (Suliman, 2001).

1.3 Hypotheses:

This study has two types of assumptions, including:

Hypotheses 1: There is a significant positive relationship between importance of work and employee performance.

Hypotheses 2: There is a positive relationship between competition and employee performance.

1.4 Conceptual Framework:

Independent variable: Dependent variable:

EMPLOYEE EMPOWERMENT Employee Performance

3. Methodology:

In this author's research defined employee empowerment, a direct connection with the performance of employees by
the literature. This research study used primary data collected from Multan district banks in the public sector and the
private sector. For the study 100 respondents provided full questionnaire with complete information requested in the
questionnaire. In the questionnaire Likert scale was also used to point 7. Different econometric techniques were used to
analyse the data to test the hypothesis and achieve the research objectives defined in Part 1. Descriptive statistics,
correlation and regression were used to analyse the data to explore the impact of training employees on their
performance in the banking sector Multan Pakistan, presented in the last part as an annex.

4. Results:

This research examined the impact of training on employee performance. Almost all organizations have realized the
importance of improving employee performance target for organizational sustainability and growth. All institutions
anticipate a loyal employee for your organization, you can explain your goals and define the resources for the realization
(Carter, 2009 JDT). Many employees want respect and responsibility in your organization. Where institutions rely on
empowerment of their staff and give them the means, it indicates that more flexibility, the improvement of the
revolution, the desire for change and greater job satisfaction.

Hypotheses 1: the regression results presented that there was significant positive relationship between importance of
work and employee performance (r = 0.002 sig = .148a). R is the multiple correlation coefficients between observed and
predicted values of the performance to the important work of employees dependent variable. In the range from 0 to r 1
value is important.

Hypotheses 2: Correlation results show that there was significant positive relationship between competition and
employee performance (r = 0.12 sig = .148a). R is the multiple correlation coefficients between the observed and
expected performance competition ranging employees. In the range from 0 to r 1 value is important.

5. Discussions and conclusion:

This research is the recognition of a strong relationship between employee empowerment and employee performance.
Employee performance is provided by the empowerment and by two important determinants of work demonstrating
that empowerment is very essential determinant to predict employee performance. Empowerment is explained as multi-
dimensional, social and method. It is multidimensional sociological dimensions, psychosomatic, monetary and others.
This also occurs in several steps, as independent, collective and public. According to the definition of empowerment, it is
the authorization to take managements decision without discussing the matter with the upper level management.

It is a means or step. Other facts of empowerment;

They differ to the situation and the people involved precise, but they are constantly stay. But also the involvement key to
that description alone of empowerment is the individual and the public is mostly associated (Page Czuba and 1999).
Thus, empowerment can help companies keep their key people with good exercise, accountability and better define the
character for his organization (Gal-Or. Amit 1997).

6. Future Research Directions:

In the near future, designed for individual consultations with some research methods and survey management across
the network are concentrated in the later stages of the workers. This way we can answer the questions: What is the
point people respond with confidence to the empowerment and the time they can do any ambiguity or deficiency
apparent intelligence phase? Our research will be integrated with other areas of the environment to provide further
investigation on the consequences of the expected responses of the accused in different market phases. Diverse and
varied capital markets involving different stages of the creation of the installation. The future direction of research also
discovered measuring variables such as leadership, impact, culture, trust, choice, authority, motivation and self-efficacy,
etc., can lead as the circumstances of our research model.

In the near future, designed for individual consultations with some research methods and survey management across
the network are concentrated in the later stages of the workers. This way we can answer the questions: What is the
point people respond with confidence to the empowerment and the time they can do any ambiguity or deficiency
apparent intelligence phase? Our research will be integrated with other areas of the environment to provide further
investigation on the consequences of the expected responses of the accused in different market phases. Diverse and
varied capital markets involving different stages of the creation of the installation. The future direction of research also
discovered measuring variables such as leadership, impact, culture, trust, choice, authority, motivation and self-efficacy,
etc., can lead as the circumstances of our research model.

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APPENDIX

TABLES

Table 1: Frequency: `

Statistics
Gender age qualification designation
N Valid 100 100 100 100
Missin 0 0 0 0
g
Table 2: What is your gender?

gender
Frequency Percent Valid Percent Cumulative
Percent
Valid male 76 76.0 76.0 76.0
female 24 24.0 24.0 100.0

Total 100 100.0 100.0

Table 3: What is your age?

age
Frequenc Percent Valid Cumulative
y Percent Percent
Vali 25 to 35 53 53.0 53.0 53.0
d 36 to 45 37 37.0 37.0 90.0
46 to 55 9 9.0 9.0 99.0
greater then 1 1.0 1.0 100.0
56
Total 100 100.0 100.0

Table 4: What is your qualification?

qualification
Frequenc Percent Valid Cumulative
y Percent Percent
Vali Intermediat 3 3.0 3.0 3.0
d e
Graduation 51 51.0 51.0 54.0
Master 45 45.0 45.0 99.0
Other 1 1.0 1.0 100.0
Total 100 100.0 100.0
Table 6: What is your designation?

Frequency Percent Valid Percent Cumulative Percent

Valid area manager 8 8.0 8.0 8.0

branch manager 14 14.0 14.0 22.0
officer og-1 19 19.0 19.0 41.0
officer og-2 15 15.0 15.0 56.0
officer og-3 15 15.0 15.0 71.0
teller1 14 14.0 14.0 85.0
teller2 14 14.0 14.0 99.0
other 1 1.0 1.0 100.0
Total 100 100.0 100.0

Table 5: Descriptive Statistics

Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
employee empowerment 100 1.00 2.00 1.2100 .40936
employee performance 100 1.00 7.00 2.3500 1.39534
Valid N (listwise) 100

Table 6: Correlations:

Correlations
employee employee
empowerment performance
employee empowerment Pearson Correlation 1 .148
Sig. (2-tailed) .143
N 100 100
employee performance Pearson Correlation -.148 1
Sig. (2-tailed) .143
N 100 100
Table 7: Further Results:

Variables Entered/Removedb
Mode Variables Variables Method
l Entered Removed
1 employee . Enter
empowermen
t
a. All requested variables entered.
b. Dependent Variable: employee performance

Model Summary
Mode R R Adjusted R Std. Error of
l Square Square the Estimate
1 .148a .022 .012 1.38707
a. Predictors: (Constant), employee empowerment

ANOVAb
Model Sum of df Mean F Sig.
Squares Square
1 Regression 4.203 1 4.203 2.184 .143a
Residual 188.547 98 1.924
Total 192.750 99
a. Predictors: (Constant), employee empowerment
b. Dependent Variable: employee performance

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
1 (Constant) 2.959 .435 6.806 .000
employee empowerment -.503 .341 -.148 -1.478 .143
a. Dependent Variable: employee performance