IMPACT OF EMPLOYEES’ EMPOWERMENT ON ORGANIZATION PERFORMANCE
1.1 BACKGROUND OF THE EXPERIMENT
People’s empowerment is a significant factor in the development of subordinates because it allows them to excel by investing in themselves, even at the risk of making mistakes (Page and Wong, 2000).
The servant leadership theory emphasizes employee empowerment, service, and commitment to their development (Spear, 2004). Empowering others to act will improve the performance of followers and make them aware of their full potential (Kouzes and Posner, 2002).
Effective leaders and managers assist employees in feeling competent. Additionally, they frequently consider the interests of others (Kouzes and Posner, 2002). Goodly (2008) identified the development and empowerment of others as the most important leadership development components. Moreover, he considered that servant leaders can boost leadership development elements the greatest. One of the social abilities of leaders is the ability to develop others (McCauley and Van).
Velsor, 2004). In the past decade, numerous firms have embraced empowerment-based managerial practices (e.g., self-managed work teams, comprehensive quality management) with the assumption that these will boost employee productivity and innovation (Wellins et al., 1991).
To empower is to confer power. However, power has multiple connotations. In a legal context, power is synonymous with authority, hence empowerment can also signify authorization (Kenneth W. Thomas).
1990). Nonetheless, power also refers to energy. Thus, to empower is synonymous with energizing. This latter definition captures the contemporary motivational usage of the term the best. The term empowerment alludes to the inspirational nature of this new management paradigm. According to leadership expert Daniel Goleman, “the Employee is a basic molecule of distributed leadership and the basic unit through which you can influence organizational norms.” In the past, organizational academics have concentrated their efforts on empowering management practices, such as delegating decision-making authority to lower organizational levels and expanding access to information and resources for those at lower organizational levels (Blau and Alba 1986).
In research, the idea of empowerment is characterized by its various facets. According to Vogt and Murrel (1990), empowerment is the process of enhancing the ability of employees to make decisions through cooperation, sharing, training, education, and teamwork. Furthermore, Klagge defines empowerment as the process of delegating appropriate responsibility to people and enabling them to acquire skills (Klagge, 1998). It is clear from the definitions that empowerment encompasses not only the cognitive part of increasing the employee’s potential inside the business, but also the behavioral aspect of the employee’s contentment with his or her employment and work environment. The behavioral part of empowerment can be characterized as the period of encouraging and autonomizing employees to enhance their decision-making abilities, transfer the directing authority, and capitalize on their talents and experiences (Cacioppe, 1998). The behavioral part of empowerment involves the decentralization of authority. Enhancing employees’ access to organizational sources and knowledge is the cognitive part of empowerment. The psychological aspect of empowerment is a second facet. This element informs managers of the transfer of authority and power and ensures that empowerment applications are understood. Conger and Kanungo (1988) acknowledge empowerment as a motivational concept and define it as the enhancement of workers’ self-competence.
Performance of an organization is the extent to which the operations serve the mission (Akal, 1992). In other words, performance is “the rate of purpose realization” or “activity outcome level.” This level indicates the extent to which the purpose or objective has been met (Schermerhorn et al., 1985). Institutionally, performance is defined variably based on several methodologies. Performance is the degree to which an institution and an individual achieve their goals. Some experts, like as Campbell, assert that performance is the action itself, not merely the product of it. Campbell defines performance as organization-appropriate behavior that may be monitored in accordance with contribution level (Suliman, 2001). Considering the definition, it is clear that an individual’s performance depends on his or her personality, cognitive talents, and desire to integrate with institutional goals.
Organizational performance can be defined as “the extent to which businesses attained their business goals” (Janepuengporn and Ussahawanitchakit, 2011). This concept is evaluated primarily by financial and non-financial measures (such as profit and return on investment) (such as customer satisfaction and quality of products and services). Deshpande et al. (1993) and Drew (1997) established a measure of organizational success that combines financial and non-financial indicators. According to them, it refers to “the level of overall success, market share, growth rate, profitability, and innovativeness relative to major competitors.” Consequently, the emphasis of this study is the effect of employee empowerment on organization performance in Veepee industries.
1.2 DESCRIPTION OF THE CHALLENGE
Many businesses today prefer to focus on getting a competitive advantage in the marketplace. Numerous factors, including advanced equipment, innovative technology, an effective marketing plan, and superior customer service, can contribute to the development of advantages. However, human resources are an organization’s most valuable asset, and its success or failure is contingent on their credentials and performance (Ongori, 2007). The employees possess information, skills, and abilities that cannot be duplicated by competition. Competitors can easily duplicate a company’s technologies, goods, and processes; nonetheless, people represent the company’s most valuable strategic asset (Ongori, 2007).
To compete worldwide, globalization has presented Nigerian businesses with a variety of opportunities and obstacles. In addition to technology advancement, a developed, qualified, and empowered workforce will provide Nigerian organizations with a competitive advantage over their rivals. Empowerment has a substantial association with employee performance in terms of increased productivity, job satisfaction, and less staff turnover in firms, according to studies (Ongori, 2007). These issues need an investigation into the effect of employee empowerment on Veepee industries’ organizational effectiveness.
1.3 OBJECTIVES OF THE STUDY
Determine if staff training is practiced by Veepee industries’ employees.
Determine the relationship between employee empowerment and job satisfaction at Veepee industries.
To evaluate the impact of relevant employee training on organizational performance.
Determine if the empowerment of employees enhances the capacity of employees in Vepee industries.
5. To investigate the impact of employee empowerment on Veepee industries’ productivity.
IMPACT OF EMPLOYEES’ EMPOWERMENT ON ORGANIZATION PERFORMANCE