Def: It is the transfer of real power to the employees. It allows him/her to work on their own within agreed time limits and with agreed resources.
It distributes control among employees and improves quality and customer satisfaction. Empowered employees develop more confidence in their capabilities
Employee empowerment is giving employees a certain degree of autonomy and responsibility for decision-making regarding their specific organizational tasks.
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Benefits of Empowerment
Decision-making and control is in the hands of employees who use their greater skills and knowledge for the benefit of the business/decisions made quicker.
Employees become more responsive to the needs of customers/come up with ideas to solve issues/more satisfied customers.
Employees more motivated/job satisfaction/valued/improved morale/loyal. Employees are better prepared for promotion/better trained.
Management can focus on strategic planning and allow employees to run the business operations.
If empowerment is introduced without adequate training for employees, then mistakes can be made
Employees may be unhappy with the extra responsibility and/or lack of training and their stress levels may increase. This can cause de-motivation among employees.
The lack of control and day-to-day supervision may encourage some empowered employees to take unnecessary risks, leading to bad decision making.
Empowerment means management are handing over control, responsibility and power to subordinates. Some managers may be cautious of this reallocation of power.