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BUSINESS ADMINISTRATION UNDERGRADUATE PROJECT TOPICS

IMPACT OF EMPLOYEES’ EMPOWERMENT ON ORGANIZATION PERFORMANCE

IMPACT OF EMPLOYEES’ EMPOWERMENT ON ORGANIZATION PERFORMANCE

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IMPACT OF EMPLOYEES’ EMPOWERMENT ON ORGANIZATION PERFORMANCE

Chapter one

INTRODUCTION

1.1 Background of the Study

People empowerment is a crucial contributor to subordinate growth because it allows individuals to achieve exceptionally well by investing in themselves, even if it means making mistakes (Page and Wong, 2000).

Servant leadership theory emphasises employee empowerment, service, and a commitment to their development (Spear, 2004). Empowering others to act leads to higher performance and awareness of one’s full potential (Kouzes and Posner, 2002).

Successful leaders and managers help their staff feel capable. Furthermore, they typically consider the interests of others (Kouzes & Posner, 2002). Goodly (2008) identified developing and empowering others as the primary leadership development factors.

Furthermore, he believed that servant leaders might most effectively increase leadership development characteristics. Leaders’ social abilities include the ability to develop others (McCauley and Van

Velsor (2004). Many organisations have employed empowerment-based managerial practices during the last decade (e.g., self-managed work teams, total quality management), with the assumption that they will boost employee productivity and innovation (Wellins et al., 1991).

Empowerment involves giving power to someone. However, power can be defined in a variety of ways. In a legal sense, power means authority, and empowerment might signify authorization (Kenneth W. Thomas).

1990). However, “power” also refers to energy. Thus, empowering also means energising. This latter definition best reflects the term’s current motivational usage. The term empowerment refers to the motivational aspects of this new management paradigm.

According to leadership expert Daniel Goleman, “the employee is a basic molecule of distributed leadership and a fundamental unit in which you can change norms throughout the organisation.”

Previously, organisational academics concentrated their work on empowering management practice, such as delegating decision-making from upper levels to lower levels and boosting lower-level individuals’ access to knowledge and resources (Blau and Alba 1986).

In research, the idea of empowerment is defined in various ways. According to Vogt and Murrel (1990), empowerment is the process of increasing employees’ decision-making abilities through collaboration, sharing, training, education, and teamwork. Klagge defines empowerment as the practice of giving suitable responsibility to employees and enabling them to develop skills (Klagge, 1998).

According to the definitions, empowerment includes not only the cognitive part of improving an employee’s capacity inside the organisation, but also the behavioural aspect, in which the employee’s pleasure with his or her job and workplace environment is critical.

The behavioural part of empowerment is defined as the period of encouraging and automating people to enhance their decision-making skills, transmit directive power, and benefit from their abilities and experiences (Cacioppe, 1998).

The behavioural part of empowerment refers to the distribution of power from higher to lower levels. The cognitive part of empowerment can be defined as improving employees’ access to organisational resources and information.

Another part of empowerment is psychological. This component helps managers understand how authority and power are transferred and ensures that empowerment applications are viewed. However, Conger and Kanungo (1988) accept.

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