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Effects of Empowerment on Employee Performance in the Workplace

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DOI: 10.13140/RG.2.1.2884.9763

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Running head: Effects of Empowerment on Employee Performance in the Workplace 1

Effects of Empowerment on Employee Performance in the Workplace

Mostafa Marghany

Murray State University

Effects of Empowerment on Employee Performance in the Workplace 2

Abstract

Employee empowerment is widely viewed as a promising approach to improve

operating efficiency and customer service. But the most effective way to empower the staff is

not always clear to hospitality managers, both in terms of what to do and what to avoid. This

study will test a model of the relationships between empowerment, job satisfaction, self

efficacy, and performance. As the value of empowering employees seems clear, multinational

hospitality organizations may wish to select employees and managers who are comfortable

with an empowerment strategy, and make clear to all employees that the organization will

support them as they take more initiative.

Introduction

The hospitality industry, with its multicultural workforce (Iverson 2000), is a logical

candidate for explicit consideration of cultural values in employee empowerment. Not

surprisingly, numerous hospitality-related studies have proposed the importance of taking

values into account for employee empowerment (Gill, Fitzgerald, et al. 2010). Hospitality

organizations are more than ever putting their employees and customers as the centerpiece of

their management practices (Tsaur & Lin, 2004) to gain competitive advantage and increase

organizational effectiveness (Snipes et al, 2005).

The concept of empowerment

Empowerment definitions

The meaning of empowerment has been the subject of great debate and remains, at

present, a poorly defined concept. In general terms, empowerment can be defined as a

collection of practices that combine information sharing, delegation of authority, and

increased employee autonomy (Randolph, 2000). Govindarajan and Natarajan (2009)

indicated that employee empowerment means encouraging and allowing individuals to take

personal responsibility for improving the way they do their jobs and contribute to the
Effects of Empowerment on Employee Performance in the Workplace 2

achievement of organization’s goals. The notion of empowerment involves the workforce

being provided with a greater degree of flexibility and more freedom to make decisions

relating to work.

Empowerment forms

Lashley (2001) explained that there are four types or forms of empowerment. The first

type is empowerment through participation; this means the delegation of decision-making

from management arena, for example, the use of autonomous working groups. The second

type is empowerment through involvement, in this case management gain through reflecting

on employees’ experiences, ideas, and suggestions, for example team briefings. The third

type is empowerment through commitment that leads to increased commitment to goals and

employee job satisfaction, for example, profit sharing schemes and job rotation. While the

fourth type is empowerment through delayering which means reducing the numbers of

management hierarchy in an organization, for example, job redesign and re-training.

Empowerment practices

Empowering leadership

Researchers have identified a number of leadership behaviors that can be characterized

as empowering and one approach conceptualizes empowerment as a set of practices or

managerial techniques in which empowering leadership behaviors play a central role. The

notion of empowering leadership as developed by Arnold and colleagues (2000) they

describe empowering leader behaviors as behaviors that facilitate employee performance in

empowered work environments by enabling and encouraging workers in their work roles.

The specific behaviors include leading by example, coaching, informing, showing concern,

and participative decision-making. Raub and Robert (2012) stated that these empowering

leadership behaviors can enhance psychological empowerment in followers by influencing

each of the four dimensions of meaning, competence, self-determination, and impact.

Effects of Empowerment on Employee Performance in the Workplace 2

Psychological empowerment (motivation)

The focus of psychological empowerment is on the state or set of conditions that allow

for employees or teams to believe that they have control over their work. Conger and

Kanungo (1988) defined psychological empowerment as “a process of enhancing feelings of

self-efficacy among organizational members through the identification of conditions that

foster powerlessness and through their removal by both formal organizational practices

[structural empowerment] and informal techniques of providing efficacy information”

(1988: 474).

Psychological empowerment has been conceptualized as being composed of either two

or four dimensions. The two-dimensional view focuses on employees’ perceptions

concerning the delegation of authority and responsibility. For example, Hechanova-Alampay

and Beehr (2001) defined empowerment as involving team members’ perceived authority and

responsibility for work outcomes. Lee and Koh (2001) further refined these four dimensions

framework based on the extant literature and developed a multidimensional instrument to

assess individual-level psychological empowerment composed of the following:

(1) Meaningfulness: the meaning of a value of a task goal or purpose judged in relation to an

individual’s own ideals or standards.

(2) Competence: it is an individual’s belief in his/her capability to perform task activities

skillfully.

(3) Self-determination (or choice): autonomy in the initiation and continuation of work

behaviors and processes.

(4) Impact: the perception of the degree to which an individual can influence certain

outcomes at work.
Effects of Empowerment on Employee Performance in the Workplace 2

Managerial practices and empowerment

Empowering managerial practices would contribute to develop an empowered mindset

among employees (e.g. psychological empowerment) and, in return, this mindset would be

the motivational drive leading employees to do their job skillfully, see how things could be

done differently and take concrete action to increase efficacy in their jobs as well as in their

organizations. If organizations wish to know whether they are benefiting from their

managerial empowerment practices, it is crucial to both measures if they are successfully

fostering a proactive motivational orientation in their employees (Boudrias et al, 2009).

Employee empowerment and performance

Employee empowerment and job satisfaction

The central tenet is that workers respond more creatively when given broad

responsibilities, encouraged to contribute, and helped to derive satisfaction from their work

(Greasley et al, 2007). Job satisfaction has been defined as “a pleasurable of positive

emotional state, resulting from the appraisal of one’s job experience” (Scott et al, 2004).

Incongruence between empowerment as a management practice and cultural values may

attenuate the positive effect of discretion and autonomy on job satisfaction in high power-

distance nations where subordinates are accustomed to taking orders from their supervisor

(Robert, 2000).

Employee empowerment and self-efficacy

Self-efficacy refers to the belief that one is competent and can successfully perform an

assigned task. It is described as the development of a "can-do" attitude (Fulford and Enz,

1995). When people have sense of efficacy, they became empowered. Empower people not

only feel the sense of competence, but they are sure that to be capable enough to do their

required duties (Tohidi and Jabbari, 2011).

Effects of Empowerment on Employee Performance in the Workplace 2

Empowerment and Performance

Based on the pervious discussion the following framework is proposed. This

framework will be tested using data that will be collected from hotel employees. This study

will examine the usage of the four forms of empowerment and their impact on employees’

performance in the hotel. Moreover, the researcher aims to explore the best empowerment

form that improves the hotel employees’ performance. Proposed framework of the study as

following:

Empowerment through
participation
Job Satisfaction
Empowerment through
involvement
Employee
Empowerment through performance
commitment Self-efficacy

Empowerment through
delayering

Adopted from: (Lashley, 2001; Scott et al., 2004; Greasley et al., 2007).

Research question

What are effects of empowerment on employees’ performance.

Effects of Empowerment on Employee Performance in the Workplace 2

Population and Sample

Participants will be choosing from hospitality organizations by purposeful,

snowballing, and random samples. The process will divide into two stages, in first stage,

employees’ supervisors and managers will ask by interviewing about the types of

empowerment which they can apply, and how they can empower their employees. In second

stage, Employees targeted will be at the non-managerial level and various job types such as

front-office employees, food and beverage employees, and customer service representative.

Employees will ask to answer a survey to measure empowerment practices, self-efficacy, job

satisfaction, and performance. Confidentiality will be guaranteed for both employees and

supervisors (Gazzoli et al, 2009).

Measures

The researcher will use interviews and survey. The survey could be designed by online

survey called Survey Monkey. The constructs—empowerment and all measurement items in

these scales will analyze for reliability and validity. The empowerment construct consisted of

12 items, but after testing the scale for reliability and consistency, 2 items were deleted due to

their low factor loadings. An exploratory factor analysis also indicated two factors: (1) EMP

Factor 1, which was named “Task meaningfulness” and (2) EMP Factor 2, which was named

“Freedom to perform” (Boudrias et al, 2009).

Procedures

Quantitative methods of data collection are used to measure, document, and provide

numerical values. This is accomplished by using objective and standardized data gathering

for all research participants. The researcher can use tests, survey, and structured interviews

(McMillan, 2012). Employee survey and managers interviews will be used to address the

objectives of the study. They will be used with managers and employees in order to

investigate their Empowerment on employees’ Performance. The empowerment instrument,

Effects of Empowerment on Employee Performance in the Workplace 2

containing subscales, was administered as part of a survey in hotels. The survey consisted of

a series of questions about employees' empowerment, job satisfactions and efficacy (Arnold

et al, 2000).

Data Analysis

There are several ways data collection techniques can be classified. In this study will

use quantitative methods of data collection, are used to measure, document, and provide

numerical values. The most suitable procedure is the t-test; it is a parametric statistical

equation is most often used to test the null hypothesis that means of two groups are the same.

One of its forms is the independent-samples t-test, is used in designs assigned groups on a

posttest of achievement (McMillan, 2012).

Effects of Empowerment on Employee Performance in the Workplace 2

References

Arnold, J. A., S. Arad, J. A. Rhoades, and F. Drasgow. 2000. The empowering leadership
questionnaire: The construction and validation of a new scale for measuring leader
behaviors. Journal of Organizational Behavior 21:249-69. Cited in Raub, S. & Robert,
C. (2012). Empowerment, organizational commitment, and voice behavior in
the hospitality industry: Evidence from a multinational sample. Cornell Hospitality
Quarterly, 54(2), 136–148.

Boudrias, J., Gaudreau, P., Savoie, A. & Morin, A. (2009). Employee empowerment from
managerial practices to employees’ behavioral empowerment. Leadership &
Organization Development Journal, 30(7), 625-638.

Conger, J. and Kanungo, R. (1988), The empowerment process: Integration theory and
practice. Academy of Management Journal, 13(3), pp.471–482. Cited in Maynard, C.,
Gilson, L. & Mathieu, J. (2012). Empowerment--fad or fab? a multilevel review of the
past two decades of research. Journal of Management, 38(4), 1231-1281.

Fulford, D. and Enz, A. (1995), The Impact of Empowerment on Service Employees. Journal
of Managerial issues, 7(2), pp.161-175.

Greasley, K., Bryman, A., Dainty, A., Price, A., Naismith, N., and Soetanto, R., (2007),
Understanding empowerment from an employee perspective What does it mean and do
they want it?. Team Performance Management Journal, 14(2), pp.39-55.

Gill, A., S. Fitzgerald, S. Bhutani, H. Mand, and S. Sharma (2010). The relationship between
transformational leadership and employee desire for empowerment. Cited in Raub, S.
& Robert, C.(2010). Differential effects of empowering leadership on in-role and extra-
role employee behaviors: Exploring the role of psychological empowerment and power
values. Human Relations, 63(11), 1743–1770.

Govindarajan, M. and Natarajan, S. (2009), Principles of Management, Seventh ed., New

Delhi.

Hechanova-Alampay, R., & Beehr, T. A. 2001. Empowerment, span of control, and safety
performance in work teams after workforce reduction. Journal of Occupational Health
Psychology, 6: 275-282. Cited in Maynard, C., Gilson, L. & Mathieu, J. (2012).
Empowerment--fad or fab? a multilevel review of the past two decades of research.
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Iverson, K. 2000. Managing for effective workforce diversity. Cited in Raub, S. & Robert,
C.(2010). Differential effects of empowering leadership on in-role and extra- role
employee behaviors: Exploring the role of psychological empowerment and power
values. Human Relations, 63(11), 1743–1770.

Lashley, C. (2001), Empowerment HR Strategies for Service Excellent. London: Cassell.

Effects of Empowerment on Employee Performance in the Workplace 2

Lee, M. and Koh, J. (2001), “Is empowerment really a new concept?”, International Journal
of Human Resource Management, Vol. 12 No. 4, pp. 684-95. Cited in Greasley, K.,
Bryman, A., Dainty, A., Price, A., Naismith, N. & Soetanto, R. (2007). Understanding
empowerment from an employee perspective what does it mean and do they want it?.
Team Performance Management Journal, 14(2), 39-55.

McMillan, J.H. (2012). Educational research: Fundamental for the consumer (6th Ed.).
Boston, MA: Pearson Education Inc.
Randolph, W. A. 2000. Re-thinking empowerment: Why is it so hard to achieve?
Organizational Dynamics 29:94-107. Cited in Raub, S. & Robert, C. (2010).
Differential effects of empowering leadership on in-role and extra- role employee
behaviors: Exploring the role of psychological empowerment and power values. Human
Relations, 63(11), 1743–1770.

Raub, S. & Robert, C. (2010). Differential effects of empowering leadership on in-role and
extra- role employee behaviors: Exploring the role of psychological empowerment and
power values. Human Relations, 63(11), 1743–1770.

Robert, C., Probst, T.M., Martocchio, J.J., Drasgow, F. and Lawler, J.j. (2000)
'Empowerment and continuous improve-ment in the United States, Mexico, Poland and
India: predicting fit on the basis of the dimensions of power distance and
individualism', Journal of Applied Psychology 85: 643-658. Cited in Hui, M., Au, K. &
Fock, H. (2004). Empowerment effects across cultures. Journal of International
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Snipes, R., Oswald, S., LaTour, M. and Armenakis, A. (2005), The effects of specific job
satisfaction facets on customer perceptions of service quality: An employee-level
analysis. Journal of Business Research, 58(10), pp.1330–1339. Cited in Gazzoli, G.,
Hancer, M. & Park, Y. (2009). The Role and Effect of Job Satisfaction and
Empowerment On Customers' Perception of Service Quality: a Study in the restaurant
Industry. Journal of Hospitality & Tourism Research.

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Management Journal, pp.332-349.

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HRM practices and service behavior. Tourism Management, 25, 471-481. Cited in
Gazzoli, G., Hancer, M. & Park, Y. (2009). The Role and Effect of Job Satisfaction
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restaurant Industry. Journal of Hospitality & Tourism Research.

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Social and Behavioral Sciences, pp.829 – 833.
Effects of Empowerment on Employee Performance in the Workplace 2

Appendix

Survey via Survey Monkey

Dear Sir/ Madam,

I am a M.Sc. researcher at Murray State University. I am doing research that help in

better understanding the importance of employee empowerment in improving the employees'

performance at hospitality industry. I am interested in how hospitality employees view their

job, how they perceive their work environment and how these factors affect their

performance. Results of this study should help hospitality organizations in their efforts to

provide high empowerment to improve their employees’ performance.

Your input and participation are critical to the success of this study. I would be grateful

if you would complete this questionnaire which may take you 5-10 minutes. Your answer

will be kept strictly confidential and will be used for research purpose.

Thank you very much for your co-operation.

Sincerely,

The researcher
Effects of Empowerment on Employee Performance in the Workplace 2

Employee Empowerment (Task meaningfulness)

1. My work is important to me
Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

2. My job activities are meaningful to me

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

3. I care about what I do on my job

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

4. My job is well within my scope of abilities

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

5. I am confident about my ability to do my job

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree
 Effects of Empowerment on Employee Performance in the Workplace 2

Employee Empowerment (freedom to perform)

6. My opinion counts in group decision making

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

7. I have freedom to determine how to do my job

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

8. I have a chance to use personal initiative in my work

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

9. I have an influence over what happens in my work

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

10. I decide on how to go about doing my job

Neither Disagree
Strongly Disagree Disagree Agree Strongly Agree
Nor Agree

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