2nd Conference onManagement Case Development April 8th, 2011 / IBS Bangalore Good Afternoon
The Making of an Empowered Workforce: Demystifying a Case of Practising Indian Organization [A Study of Polyhydron Private Limited, Belgaum] M M Bagali, PhD Dean-MBA programme Professor of SHRM New Horizon College of Engineering / Marathalli / Outer Ring Road Bangalore 560 087 / Karnataka State / www.newhorizonindia.edu (A Five Star NACC Accredited) Research Student, Management StudiesKousali Institute of Management Studies (KIMS), Karnatak University, Dharwad, Karnataka State
agenda• Why such study in empowerment area• How and what this company uniquely practiced• Lessons to learn from Research outcomes
HR is an asset“you can get the workplace systems, style ofmanagement, and organize capital and erectbuilding, but it takes people to build a business,and several strategy to develop people”Thomas J WATSONFounder of IBM
Agenda 01 basis for the present workHR is essential requirement for progress and development of the countryThe front line employees are the KEY cutting edgeThe organisations have to be totally people centricA Paradigm shift focusing ‘HR’ is neededInfact, empowering employee would be crucial in evolving appropriatestrategies, as HR is the single most valuable resources that can make aquantum difference
therefore , the needTo look at the Renaissance Strategies for Creating High PerformanceWorkforceThe syntax of empowerment is simple… give people the freedom andpower at workplace, they will surely grow the organisationThus, an enquiry into various empowerment strategies and practices
the vital questions before usWhat do we mean by empowerment?How different is empowerment from other organizational practices?How do we empower?Can everyone be empowered in the organization?Whats the Role of leadership in empowerment exercise, andWhat empowerment does to everyone…. Individual; Organisational; and theLeaders
the studies• Pati,1997 • Barnes and Kaftans,• Sengupta and 1970, 1985 Shaikh,1997 • Myron Eichen,1989• Venkatachalam, • Marjorie Reynolds, 1998 1991• Dwivedi,1998 • Michael Quarrey,• Mohapatra,1998 1992• Tripathy,1999 • Cyndy Payne,1993 • Bo Burlingham, 1999
Reference Brief Description Major Theme/SummaryMenon(1999,in press) Psychological approach The empowered state is a psychological state characterized by perceived control. Perceived control, perceived competence goals.Liden&Arad(1996) Power perspective Empowerment research should be subsumed under the rubric of powerSpreitzer(1995) Psychological motivational Empowerment is increased intrinsic approach motivation manifested in four cognitions: competence, self – determination and impact.Eylon(1994) Process approach Empowerment is an enhancing and energizing context specific process that expands feelings of trust and controlConger(1989) Leadership approach Empowering subordinates is a major component of leadershipYukl(1989) Transformational Leadership The effect of the transformational approach influence is to empower subordinates to participate in the process of transforming the organizationHouse (1988) Focus on perceived control Empowered employees are those who feel confident and in control of their environments.Block (1986) Focus on employee To feel empowered is to involvement a) feel responsible for one’s actions b) to have a sense of purpose in achieving something worthwhile, and c) to commit to achieving that purposeBurke (1986) Leadership approach Leaders empower subordinates by providing clarity of direction which encompasses a higher purpose or worthy causeBennis & Nanus(1985) Leadership approach Leaders energies (hence empower) through psychological identification. The critical dimensions of 85 research work empowerment are significance, competence, community and enjoyment /fun
work of prominence• Foundation for Enterprise Development – FED, and Beyster Institute for Entrepreneurial Employee Ownership , USA• Argyris, Chris (1998):“Empowerment: The Emperor’s new Clothes”, Harvard Business Review, May-June, pp: 98 -105• Kantar, R. M , 1977, 1979, 1989,1995• Lawler, E. E III , 1986, 1988, 1992, 1994, 1995
Theoretical and Conceptual framework E M POWER M E N T em-pow-er-ment (im-pau [-] r-ment) Oxford English Dictionary says, to empower is “to authorize, to enable” Rosabeth Moss Kanter (1977) Professor at Harvard Business School, Ernest L. Arbuckle Professorship “giving power to people who operate at an advantage in the organization success” Bowen and Lawler (1992) Director, the Centre for Effective Organization, University of Southern California,“ Complete Power to make decisions that influence organizational direction and performance”
essentially, empowerment …• it liberates people from constraints such as checking with the boss before taking actions• absolute control is given up, allowing everyone make decisions, and can set goals• decision-making authority and responsibility percolates from managers to the employees at the lowest rung• people are given total freedom to do their job, and are trusted, made accountable and responsible
characteristics of conditions for empowermentempowered organization Power to actshared responsibility Participation at all levelsindividual accountability Way for innovationflat organizational hierarchy Transparency in organizational activitiesautonomous work teams Accountability for one’s actionhigh belief and trust Right kind of leadershipleadership at all levels Autonomy to work Way to release extra energyclimate of collaboration Proper recognition andatmosphere of openness appreciationfreedom from all Climate of trust and faith A learning culture
the phd workWorkers Empowerment : A Case Study ofPolyhydron Private Limited, Belgaum,Karnataka State, IndiaEstablished in 1981-82Address:80, Machhe Industrial Estate,Machhe, Belgaum- 590014. Karnataka Statewww.polyhydron.com
research objectives to understand factors that contribute to empowerment--the systems, practices, policy and the leadership to understand management practices impacting on employee behavior, thus empowering employees made to understand all factors that contributed to empowerment--the systems, practices, policy and leadership an effort was also made to see how these management practices impacted upon employee behaviorSupporting Objectives :Do we really need empowered people? Is empowerment something that can be done to some one, or is it something a person must choose? What role does the person in the top have to play in this exercise? With all these objectives, the genesis of empowerment is probed at a macro level.
areas of enquiryAccountability / Bureaucracy / Culture / Leadership/Management Style and approach / Structure / liberty /Communication / Decision Making / Discipline/ Ethos /Industrial Democracy / Knowledge Sharing / OwnershipCulture / Organizational Health / Power Distribution/Responsibility Sharing / Transparency / Information sharing/ Degree of trust & loyalty……….total of 75 areas
data collectionThe format of Data collection from Employees Pre Pilot Pre Pilot Observation Observation Observed the Pooling all the System responses Questionnair Discussion e with CEO Administered Case-by- Case discussion
The format of Data collection from CEO / MD Observed the Pooling all system responses in presence of all Discussion Back to with CEO CEO System/ Case by case • An in-formal observation over a period Practices discussion interface • Discussion with CEO at one-one level • The opinions of CEO and system interfaced All the collected data of CEO through opinions were observed, verified case by case with each employees • The opinions / views of employees were put back to CEO / MD for discussion, and • Open House
Agenda 02 what we saw at ppl • Estd 1981-82 • Conventional way of Management 1982-1988 • Visit to SEMCO, Sau Paulo, Brazil 1988 • Changed People practices 1988-1996 • Empowered People practices 1996 onwards
empowerment@workplace•The HR practices•The Culture, and the•The Leadership
changed workplaceempowerment@work: the making of an empowered workforceConventional PresentDo what is told Do what is requiredLiberty misused Liberty made use to fullest extentNot my job attitude Its everyones jobCommitment level low High commitmentBoundary defined No BoundaryLack of scope for improvement High scope for improvementVarious committees / councils Never a designated committeeTrust level low Trust is coreSupervised work No SupervisionFreedom restricted More freedom / libertyClosed behavior Transparent behaviorApply for leave / off Decide on leave / off
the culture •Value given to Human beings •Each is accountable / responsible for his actions and can’t blame othersthe hr practices •All information is open and sharedComplete FreedomTotal Transparency •Each is boss in himselfComplete Shared ResponsibilityAccountability for ones actions •Common rooms are sharedLiberty to decide course ofactions •Suggestions are given regularly and openInvolvement / Participation •Management is open to ideas and moreTransparent feedback information sharingDelegated authorityNo hidden Agenda •Every one can have own objectives, mission,Complete Autonomy and goals;Power to take decisions •No Security or guard
employee traits Open and Transparent Positive Approach No defined mind set Free from Biasleadership No scapegoat attitudeFreedom to do work in one’s own way High CommitmentNo Supervision/ Foreman DisciplinedNo Bureaucratic and Administrative interference TrustworthyNo Red-tapism Enjoys the workSharing Common Platform Loyal and TruthfulTrusting each persons actions Work that extra mileNo restrictions for new inventionsOne can fail, no punishmentSuggestions are part of daily workAccepts criticsOpen House
ceo’s reactions• you have done a mistake and let us all look at it;• my door is always open for discussions;• let us all discuss on your idea;• how to solve your problem…. your problem is our problem;• any ideas from your side to contribute;• I look for everyone in joining hands with me;• you have done a good work, let us all learn lessons from you;• please teach me the new techniques that you have learnt;• let me announce your achievements to others;• You will arrange a programme for sharing your successful story.
language@workplaceMy door is open to youLet us all discuss on the ideaYour problem / issue is our concernLet us join hands togetherKindly teach me the new techniqueLet us all announce your achievement
outcome of such practices• Engagement with Organsiation• Product Innovation• Profits and Income Scaled• Turnover and loyalty• Reputation and Customers• Market Standing• NO IR issues• Employer BRANDING
drawbacks• Why power to me• Is it the game plan of management• Its not my job to have power• Its not my job to decide• I am not the right person to have power• My me as leader and decision maker
the impressionsAdi Godrej,Chairman and MD, Godrej Soaps ltd,1992 “It has opened my eyes in best people management practices”Ricardo F Semler,Chairman, SEMCO, Brazil, 1994 “I have seen an exceptionally empowerment practiced at workplace”Sri Sharadrao Pawar,Ex-CM, present Cabinet Minister, GOI,1997 “Congrats for good work done in people management strategies”
Agenda 03 Ideas for practices: lessons to learn •Platform for Empowerment / Don’t hold unto data create conditions for Informal Relations empowerment Create Opportunity •Prioritise the area Desired Future •Attitudinal Surveys Education the gains •Accountability Time to empower or not to •Define the Purpose empower •Open Door Policy and Can’t empower areas Transparency Don’t impose empowerment •Ownership Culture Power of Empowerment Fun at workplace
academic discussion• OB advantage corporate• HR practices• HRM / SHRM • CEO• Leadership • HR Chief• Organizational Change • Chief Peoples Officer• Restructuring / OD • Dean and Directors of• Sociology of Culture MBA• Change Management • MDP’s
At IBS InstituteCourses inOB/ HRBasics in ManagementLeadershipGroup Dynamics
future researchCompare empowerment with less / no empowerment organisationCompare empowerment strategies amongst male and femaleCompare with Public X Private sector companyCompare with Small x Medium X LargeRetired / leftover employees survey or opinion can also be had
About PhD• At MBA dept, Karnatak University, Dharwad, Karnataka State / 5 Star NACC graded• Dr. A H Chachadi, Professor, Guide• Evaluated by XLRI and IIM-K Professors• Between 2000-2008 work undertaken• 299 pages total• 311 references• Awarded on 16th March, 2008
Endorsement on the WorkXLRI Editor,when published in XLRI-Management and Labour Studies Journal The article printed below is a truly extraordinary example of employee empowerment. The methods followed by the organisation studied would be considered revolutionary anywhere in the world and even more so in India. Infact, one sometimes wonders how the whole effort did not end in chaos. The company has apparently succeeded in developing a work force and a leadership almost devoid of the foibles of most other humans. (Printed on the Article XLRI-Management and Labour Studies, 26,2,April, 2001, pp.109-119)Executive Director,Indian Journal of Training and Development, ISTD, India The article published in the area of Empowerment in ISTD has been adjudged as the Best Paper published during the year-2001. Kindly accept our Heartiest Congratulations.(22July, 2002 / Through Personal Letter)
Yoon, Jeong, Professor of ob and hr, AJOU university, South KoreaYoon, Jeong (2001).“The role of structure and motivation forworkplace empowerment: The case of Korean employees”,Social Psychology Quarterly, 64 (2); pp. 195 – 206
Presentation to Senior HR Managers,of SHRI on Empowerment, part of present work 2003, September
Polyhydron MissionWe will nurture an Ethically Managed Organisation. We will not exploit our Customer, Employees, Suppliers, Government, Society and Nature Polyhydron Vision We will create an island of Excellence throughfocus on Customer, Employee Empowerment and continuous improvement.
Harvard Business Review HBR, July-August, 2010, p:57When workers are made to feel empowered, the whole organization wins Roger L MARTIN, Dean, Rotman School of Management University of Toronto, Canada
Teaching NotesGoals of the Case:• The goal of the present case discussion is to drive in understanding the importance of Employee Empowerment.• Further, how can such practices be undertaken and what should be the methodology.• Finally, to prepare the HR Manager / Executive to look at empowerment as the big step for People Management, per se.
Pedagogical Objectives of the Case1. To understand the importance of people management2. How can HR be innovatively developed, managed and nurtured3. Crystallizing the reasons as to “Why top companies” are different4. To explore and analyze conditions that makes workplace empowered5. The role of HR / CEO in changing the workplace towards empowerment
Questions to prepare for in-class discussion• What is your definition of Empowerment?• What are the traits that need to be developed in employees?• How to create an Empowerment culture and strategies in Organisation (the steps involved)?• The area (scope) of Empowerment practices (the boundaries to be defined)• What is the out-come of Empowerment (How to measure the after-math of such practices)?
Questions to advance discussion during the sessions:• What should be the degree of freedom in an empowered organisation?• What are the characteristics of an empowered person?• Do we really want empowered people?• How do people develop a sense of empowerment?• What organizational characteristics facilitate employee empowerment?
Suggested Sequence and Time Frame for the case discussion• Few sessions on the concept along with the best HR practices• Open class discussion• Divided into 3-4 students team• Theory part on empowerment• Differentiating strategies between the various human resource strategies adopted in empowering employees• Case may take full length of 4-5 sessions• Handouts and ppt / along with blackboard management• At end, conclude with possible difficulties/ drawback/and any other issues
Assignment and Pre-preparations:Home Assignment and small level projects inthe area of HR practices, leadership, andculture changeQuizReading Material and Source of CollectingCase Material / Bibliography to use