This document presents a research article on examining the relationship between empowerment, job enrichment, and employee loyalty during downsizing. The study hypothesized that 1) empowering managerial practices are directly related to employee loyalty and 2) empowerment has an indirect relationship with loyalty through job enrichment. A questionnaire was administered to 203 employees of Mobilink Telecom who experienced downsizing to measure empowerment, job characteristics, and loyalty. Path analysis was conducted to analyze the mediated relationships between the variables.

2. National University Of Modern Languages
Research methods for business
Presentation on research article
Presented to : Mrs. Humaira Hamid
Presented by: H. M. Nouman Riaz

3. “The influence of empowerment and
job enrichment on employee loyalty
in a downsizing environment”
by:
BRIAN P. NIEHOFF
KANSAS STATE UNIVERSITY
ROBERT H. MOORMAN
CREIGHTON UNIVERSITY
GERALD BLAKELY
JACK FULLER
WEST VIRGINIA UNIVERSITY

4. CONTENTS
• Problem Statement
• Literature Review
• Theoretical Framework
• Hypothesis
• Research design
• Methodology

5. Problem Statement
“to examine the degree to which
empowering behaviors of managers and
job enrichment are positively related to
the loyalty of downsizing survivors”

6. LITERATURE REVIEW
Empirical studies have supported a positive
relationship between empowerment and
loyalty or commitment. Fulford and Enz
(1995) found that perceived empowerment
showed a significant and positive relationship
with loyalty among service employees in
private clubs

7. CONT. ….
Empowerment, however, is also a job-altering
process—empowering employees means
either the content or context of the job has
changed (Ford& Fottler, 1995).
Hackman and Oldham (1976) theorized that
an enriched job is one that has more variety,
identity, significance, autonomy, and
feedback.

8. Theoretical Framework
empowerment
Loyal
boosterism
Job
characteristics
x1 x2 x3 x4 x5

9. Hypothesis
• H1: there is direct and significant
relationship between empowering
managerial practices and loyalty
behaviors among employees.

10. CONT…
• H2: there is indirect relationship
between empowering managerial
practices and employee loyalty as
mediated by job enrichment as defined
by perceived job characteristics.

11. RESEARCH DESIGN
• Purpose of Study
Hypothesis Testing
• Type of Investigation
Causal Study
• Extant of researcher’s interference
Minimal interference

12. CONT…
• Study Settings
Field study (Non-Contrived study)
Natural environment
Minimal interference

13. CONT…
• Unit of analysis
Individuals
• Time horizon
Cross sectional
(questionnaire)

14. METHODOLOGY

15. POPULATION
Mobilink telecom Inc. Lahore that had been
downsized and restructured before six years
TARGET POPULATION
306 employees of mobilink
(working from at least last six years
in business centers and technical
departments of mobilink situated in
Lahore)

16. SAMPLE SIZE
203 employees
(Two third of total population)
SAMPLING FRAME
Employees Directory

17. SAMPLING TECHNIQUE
Simple Random sampling
DATA COLLECTION METHOD
Questionnaire
(contained measures of loyal boosterism, job
characteristics and empowerment)

18. RESPONSE RATE
41.8% (80 complete questionnaire)
OPERATIONALIZATION OF VARIABLES
• Loyal boosterism was assessed by
five items drawn from the organizational
citizenship behavior scale developed by
Moorman and Blakely

19. CONT.…
• Task characteristics were
measured by the Job Diagnostic
Survey developed by Hackman
and Oldham

20. CONT.…..
• empowerment scale consisted of
15 items that included a variety of
behaviors that a manager would
exhibit in an empowering situation

21. DATAANALYSIS
to hypothesize a mediated relationship
between empowerment and loyal
boosterism, path analysis using LISREL
8 (Jöreskog & Sörbom, 1993) was used
to assess the significance of the paths
between the variables

22. STATISTICAL TECHNIQUE
• Chi square (36.55 for 13 degrees
of freedom)
• Comparative fit index ( .93)