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Qi Yan
School of Humanities and Social Sciences, Nanjing Forestry University,
Nanjing, China
Abstract
Purpose – This study aims to explore the influence of psychological empowerment on the career
competencies of Generation Y employees and the relationship between empowerment and career
satisfaction.
Design/methodology/approach – Generation Y working in the hospitality industry comprised the
target population of this study. A total of 500 questionnaires were distributed, and 458 valid
questionnaires were obtained. Structural equation modeling was used to analyze the data and to test the
causal relationships among the constructs.
Findings – Psychological empowerment was positively related to career competencies and career
satisfaction. Moreover, the four dimensions of psychological empowerment, namely, impact,
competence, self-determination and meaning, also contributed positively to the career competencies and
satisfaction of Generation Y. Findings indicated that empowerment was an important predictor of
career management among young employees.
Research limitations/implications – The limitation of this study is the use of convenience
sampling method, with participants selected according to their accessibility. Future studies should
collect a reasonably broad sample by using probability sampling methods.
Practical implications – The findings of this study provided useful guidance to manage and
empower Generation Y employees. First, the importance of psychological empowerment to enhance the
career competencies and satisfaction of young employees was proved. Second, this study provided
detailed information on how to empower Generation Y employees. Third, this study may help to retain
qualified employees by empowering and supporting their career development.
Social implications – This study highlighted the importance of empowerment in managing
Generation Y employees. Once Generation Y employees are trusted and empowered, they tend to
perform well in both their job and career. Findings indicated that the four factors of psychological
empowerment had different contributions to careers of the employees. Results suggest that managers
International Journal of
should attempt to assign challenging and meaningful tasks to young employees and to increase their Contemporary Hospitality
Management
Vol. 28 No. 11, 2016
The authors thank the Shandong Social Science Planning Research Foundation (No. 15CGLJ16) pp. 2553-2569
and the Shandong Development and Reform Commission for extending their support for this © Emerald Group Publishing Limited
0959-6119
study. DOI 10.1108/IJCHM-05-2014-0222
IJCHM responsibility and impact in the organization. To attract and retain qualified young employees, career
competences should be enhanced to achieve a level of career satisfaction.
28,11 Originality/value – This study presented new findings on Generation Y and the outcomes of
psychological empowerment. Initial evidence on the contribution of empowerment to the career issues
of the new generation was proved. The findings outlined detailed information on psychological
empowerment by exploring the function of its four factors. The results may serve as a foundation for
future research on empowerment and career issues of Generation Y.
2554
Keywords China, Human resource management, Career development, Hospitality industry,
Empowerment, Generational differences
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1. Introduction
The main workforces in the hospitality industry in China comprise Generation Y
employees. Generation Y indicates those who were born from 1981 to 2000 (Gursoy et al.,
2013). These individuals are also known as Millennials, Nexters and Echo Boomers
(Parry and Urwin, 2011). These young employees own distinctive generational
characteristics and values (Chen and Choi, 2008; Park and Gursoy, 2012), which
influence the requirements for all human resource management aspects, such as
training, rewards and career management. Understanding, serving and providing
customized management activities for Generation Y offered new challenging topics for
both researchers and practitioners.
Most generation Y employees received high education, they are ambitious and attach
importance to career development (Dinnell, 2007; Josiam et al., 2010). They are more
concerned about work–life balance, equity in the workplace and individual career
development than previous generations (Broadlbride et al., 2007; Kong, 2013; Kong et al.,
2015). Enjoying opportunities for career advancement and having a fulfilled and
balanced life appears to motivate Generation Y more than money alone (Brown et al.,
2014; Crumpacker and Crumpacker, 2007).
In addition to career-related issues, Generation Y employees prefer clear directions
and expect autonomy to accomplish the job via empowerment (Morton, 2002).
Psychological empowerment is an internal stimulator that enables to complete their
tasks (Spreitzer, 1995a, 1995b). This type of empowerment is an internal motivation to
promote the organizational citizenship behavior of employees (Conger and Kanungo,
1988). Psychological empowerment affects the job roles as well as the job performance of
employees.
Therefore, career-related issues and empowerment are two most important factors
for Generation Y, and career development and empowerment theories may serve as a
theoretical foundation for this study. Although previous studies (Parry and Urwin,
2011); Gursoy et al., 2013) have explored the generational differences of Generation Y,
empirical studies remain scarce (Parry and Urwin, 2011). Regarding the research on
empowerment, most studies focused on its influence on job performance (Chow et al.,
2006; Niehoff et al., 2001); however, limited attention has been directed toward the
relationship between empowerment and career issues. Therefore, this study aims to
explore the effects of empowerment on career competencies and career satisfaction. The
specific research objectives are to examine the influence of psychological empowerment
on career competencies, to explore the effect of psychological empowerment on career
satisfaction and to explore the mediating effect of career competencies.
2. Literature review New
2.1 Relationship between psychological empowerment and career competencies generation,
It has been found that psychological empowerment is a motivational construct used to
enhance job performance of employees (Spreitzer, 1995a, 1995b). This concept indicates
psychological
that psychological empowerment has four dimensions, namely, meaning, competence, empowerment
self-determination and impact (Spreitzer, 1995a, 1995b; Thomas and Velthouse, 1990).
Meaning indicates the fit between values and job, competence refers to self-efficacy and 2555
self-determination and impact mean autonomy over task and influence over job
outcomes, respectively.
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Arthur et al. (1995) suggest that personal competencies reflect different forms of
knowing, and the intelligent careers reflect the application of these forms of knowing.
Career competencies include knowing-why, knowing-whom and knowing-how. The
knowing-why career competency indicates the motivational energy to understand
oneself, explore different possibilities and adapt to dynamic, ever-changing work
situations (Arthur et al., 1999). It involves three variables, namely, proactive personality,
career insight and openness to experience (Eby et al., 2003). Given that psychological
empowerment is a motivational process that enhances the self-efficacy of employees
(Conger and Kanungo, 1988; Kim et al., 2012), it may help to enhance their career
competencies. For example, psychological empowerment has been proved to encourage
employees by increasing their motivation and aspiration (Morrison, 1996), to help them
realize their full potential (Klagge, 1998) and set up realistic career goals (Kong et al.,
2012). Thus, psychological empowerment may enhance the knowing-why career
competency.
The “knowing-whom” competency refers to networks and contacts relating to
careers (DeFillippi and Arthur, 1994). Psychological empowerment not only affects job
performance but also influences the working environment and communication skills of
employees (McMillan et al., 2011; Spreitzer, 1995a, 1995b). An empirical study showed
that the perceived psychological empowerment resulted in a supportive work
environment full of care and trust (Corsun and Enz, 1999). The feeling of empowerment
increases as leader approachability, group effectiveness and group value increase. The
relationships of employees with one another tend to be people-oriented and based on
sharing (Koberg et al., 1999). When employees are trusted and empowered, they feel a
sense of pride in their job and feel confident to communicate with others (McMillan et al.,
2011) and also would be likely to provide better service to customers (Chow et al., 2006).
All these indicated that psychological empowerment may help to enhance the
knowing-whom career competency of employees.
The “knowing-how” competency reflects skills and knowledge relating to careers
(DeFillippi and Arthur, 1994). It comprises two components, career identity and career/
job-related skills. Psychological empowerment may enhance the self-esteem, innovation
and hard work (Gecas, 1989), as well as skill development of employees (McMillan et al.,
2011; Wellins et al., 1991). The perception of empowerment may help employees
cooperate toward common goals and to overcome obstacles with their intelligence (Gill
and Fitzgerald, 2010). Psychological empowerment contributed positively to
organizational learning (Rahmatollan et al., 2011), which ensured that employees remain
marketable and abreast with current development. When employees are empowered,
they may have sufficient confidence to perform activities skillfully (Spreitzer, 1995a,
1995b). Thus, it is predicted that:
IJCHM H1. Psychological empowerment may influence career competencies positively.
28,11
2.2 Relationship between career competencies and career satisfaction
Career satisfaction indicates the satisfaction that individuals derive from the intrinsic
and extrinsic aspects of their careers, which include developmental opportunities, pay
2556 and advancement (Greenhaus et al., 1990). People with high knowing-why career
competencies may identify the jobs that they are interested in and further clarify their
career objectives (Suutari and Makela, 2007). They tend to seek career development
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opportunities, carry out realistic activities and finally lead to high level of career
satisfaction (Crant, 2000). In addition, the knowing-whom career competency may
enhance the career satisfaction by setting up good networks inside and outside the
organization (Kong et al., 2012). Furthermore, an individual with a high level of
knowing-how career competency tends to seek training opportunities and obtain
portable skills (Suutari and Makela, 2007). Given the dynamic employment situation
and the need to be constantly aware of ways by which to build new skill sets, the
knowing-how competency contributes positively to career satisfaction. Thus, it is
predicted that:
H2. Career competencies may influence career satisfaction positively.
Career
competencies
H2
H1
Figure 1.
Psychological H3 Career The proposed
empowerment Satisfaction framework
IJCHM those between latent constructs or variables, by integrating the new development of two
28,11 statistical methods: factor analysis and path analysis. By combining the two statistical
methods, SEM overcomes the methodological limitations of factor analysis and path
analysis. It is, therefore, a useful statistical tool for understanding the interrelationships
among several latent variables.
The analysis procedure was conducted in the following steps:
2558 • testing each individual measurement model, including brief descriptive statistics
and reliability test;
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• randomly dividing all the questionnaires into two equal sections for exploratory
factor analysis (EFA) and confirmatory factor analysis (CFA);
• testing the overall measurement model with all data; and
• conducting SEM with all data to test the relationships among the constructs.
In accordance with previous studies (Judge et al., 1995; McDonald and Hite, 2008; Parry
and Urwin, 2011), gender, age and education were controlled because they may be
related to perceptions of career satisfaction. Likewise, career competency may vary
based on individual job tenure. This variable was, thus, treated as a control variable.
This study focused on the career and psychological empowerment of Generation Y.
According to Rhodes (1983), the meaning of empowerment and career may have shifted
across generations.
4. Results
4.1 Profile of the respondents
The target population of this study comprised young employees between 20 and 35
years of age. About 41.9 per cent of the respondents were male, and 58.1 per cent of them
were female. Approximately 67.2 per cent of the respondents were aged between 20 and
30 years. About 41 per cent of the respondents graduated from professional schools,
whereas more than 48 per cent have received college and university education.
Approximately 23 per cent of the employees surveyed had working experience of one to
three years, whereas 23.8 per cent worked for three to six years and the remaining 29.5
per cent had working experience of six to ten years. In terms of the position, more than
57.9 per cent of the respondents were working as staff members, 25.9 per cent were
working as foreman and supervisor and 16.2 per cent were at a relatively higher
position, working as department manager or deputy general manager. Table I presents
the profile of the respondents.
factors identified, with 0.70 as the minimum acceptable value. The varimax rotation
method was selected because the method has a good general approach to simplify the
interpretation of factors (Field, 2005). Based on the criteria listed for EFA, an iterative
process was conducted to obtain the acceptable factors.
Consistent with previous studies (Spreitzer, 1995a, 1995b), psychological
empowerment comprises four components – meaning, self-determination, competence
and impact. The results of EFA analysis were: Kaiser–Meyer–Olkin (KMO) ⫽ 0.84,
Bartlett’s test of sphericity: 2 ⫽ 2094.91, degree of freedom (df) ⫽ 66 and p ⬍ 0.00. The
Bartlett’s test of sphericity was significant and KMO was 0.84, indicating that the
patterns of correlation were relatively compact and the factors identified were distinct
and reliable. Cronbach’s alpha of the total construct was 0.90, the scale reliability of each
dimension ranged from 0.77 to 0.90, above 0.70, the minimum standard for reliability
(Nunnally, 1978). Therefore, the items were internally consistent, stable and reliable.
IJCHM EFA analysis of career competencies yielded the following results: KMO ⫽ 0.71,
28,11 Bartlett’s test of sphericity: 2 ⫽ 272.74, degree of freedom (df) ⫽ 13 and p ⬍ 0.00. The
eigenvalue was 2.13, and all items explained 71.01 per cent of the total variance.
Cronbach’s alpha, the most common measure of scale reliability, was 0.79. All of the
items were, therefore, averaged to form a composite career competencies construct, with
a satisfactory reliability of 0.80.
2560 The results of EFA analysis (KMO ⫽ 0.85, Bartlett’s test of sphericity: 2 ⫽ 1020.27,
degree of freedom (df) ⫽ 20 and p ⬍ 0.00) indicated that the factors were distinct and
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reliable. Five items of career satisfaction explained 73.50 per cent of the overall variance,
with eigenvalue of 3.68. The Cronbach’s alpha of the construct was 0.91, suggesting
satisfactory internal consistency.
4.2.2 Confirmatory factor analysis of the individual measurement model. The
analysis of CFA yielded the goodness-of-fit indices of each measurement model as
follows:
• psychological empowerment model (2 ⫽ 169.78, df ⫽ 50, CFI ⫽ 0.94, GFI ⫽ 0.92
and RMSEA ⫽ 0.08);
• career competencies model (2 ⫽ 107.73, df ⫽ 17, CFI ⫽ 0.90, GFI ⫽ 0.91 and
RMSEA ⫽ 0.08); and
• career satisfaction model (2 ⫽ 53.16, df ⫽ 5, CFI ⫽ 0.95, GFI ⫽ 0.94 and
RMSEA ⫽ 0.08).
The values indicated that the model fits the data well.
The critical ratio (CR) was used to test statistics in this study. The ratio operated as
a z-statistic to test whether the estimate was statistically different from zero. The
absolute value of the statistics should be greater than 1.96 (Byrne, 2001). The CR value
of psychological empowerment ranged from 9.21 to 13.31, whereas that of career
competencies and career satisfaction ranged from 10.02 to 10.35 and 13.11 to 14.53,
respectively. All CR values were greater than 1.96, and the standardized loading
estimate exceeded 0.5, indicating statistical significance.
The validity of the measurement model depends on acceptable levels of
goodness-of-fit and construct validity (Hair et al., 2009). Construct validity may be
explained by two components – convergent validity and discriminant validity. Average
variance extracted (AVE) was used to test both convergent validity and discriminant
validity. As shown in Table II, the AVE values of the three constructs exceeded 0.50,
confirming the convergent validity. The AVE value of each construct was greater than
the squared correlation coefficients for the corresponding inter-constructs, indicating
satisfactory discriminant validity (Fornell and Larcker, 1981).
RMSEA ⫽ 0.08. The results reflected a good fit between the final structural model and
the data. Figure 2 shows the final structural model as well as the standardized parameter
estimates.
Career
Competencies
0.4
0.
26
Meaning
77
0.
0.21
5
0. 1
Comptence
9
0.3
0.05
Career
Satisfaction
0.03
Self-Determination
0.11
Figure 2.
The final structural Impact
model
empowerment on career competencies was both positive and significant; thus, H1 was New
supported. generation,
4.5.2 H2. A positive relationship exists between career competencies and career
satisfaction. The path coefficient between career competencies and career satisfaction
psychological
was positive (0.77) and statistically significant (CR ⫽ 3.46, which is ⬎ 1.96). Thus, H2 empowerment
was supported.
4.5.3 H3. A positive relationship exists between psychological empowerment and 2563
career satisfaction. The hypothesis was tested by examining the path coefficient
between the exogenous variable psychological empowerment and the endogenous
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employees. Further study may target population of different generation and may
explore which generation needs more empowerment. The comparative study may
provide useful implications for practical management.
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Appendix
Measurement scales of empowerment are as follows:
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(1) Meaning
• The work I do is meaningful to me (Meaning 1).
• My job activities are personally meaningful to me (Meaning 2).
• The work I do is very important to me (Meaning 3).
(2) Competence
• I am confident about my ability to do my job (Competence 1).
• I am self-assured about my capabilities to perform my work activities (Competence 2).
• I have mastered the skills necessary for my job (Competence 3).
(3) Self-determination
• I have significant autonomy in determining how I do my job (Self-determination 1)
• I can decide on my own how to go about doing my work (Self-determination 2).
• I have considerable opportunity for independence and freedom in how I do my job
(Self-determination 3).
(4) Impact
• I have a great deal of control over what happens in my department (Impact 1).
• I have significant influence over what happens in my department (Impact 2).
• My impact on what happens in my department is large (Impact 3).
Corresponding author
Haiyan Kong can be contacted at: konghaiyan@sdu.edu.cn
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