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Employee Empowerment: A New Strategy for Creating a High Performance Work Force
M M Bagali
Management and Labour Studies 2001 26: 109
DOI: 10.1177/0258042X0102600204

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NOTES AND COMMENTS
Editor's Note: The article printed below is a truly extraordinary example of employee
empowerment. The methods followed by the organization studied would be considered
revolutionary anywhere in the world and even more so in India. In fact, 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.

EMPLOYEE EMPOWERMENT: A NEW STRATEGY FOR CREATING
A HIGH PERFORMANCE WORK FORCE
M M Bagali*
Developing and Managing Human Resources forms the
major component of organizational development and
growth. There are many ways through which HR is
developed and managed. The present buzzword is
Empowerment. The present study highlights how it was
possible for an organization to develop an outstanding
organization and thus create a place to work, where each
one was proud and happy to be associated with the
organization. The study found many strategies for
managing HR, which were unique in the Indian context.
The study pleads for a shift from all the theories of HR
management towards a culture of empowerment and
employee ownership.

Introduction In fact, how to make profits on the one
hand, and develop energetic and
We are living in a time of complex
passionate employee resources on the other
challenges in our collective lives. A whole
hand will be the factor most looked for in
gamut of leadership crises is evident in our
the years to come. Managing human
organizations and businesses. From all
resources has not remained the same as
areas of our society, and from the world at
before. Employee involvement, high
large, we hear about crises of ineffective
commitment, work culture, self managed
structures and relationship. In the face of
teams, delegation of decision making were
these challenges, we are called to rethink
the buzzwords and the formulae for
and renew relationships in our
success from 1980 to 1990. However,
organizations and our way of managing
theories have been rewritten and new
and developing Human Resources. For all
models developed because of rapid
these, a paradigm shift is needed, not only
development and global competition. To
to cope with the present situation, but to
catch up with the pace of these rapid
know how one has to march in order to stay
developments and to survive in the present
at the top in business in the years to come.
competitive world, the approach to human
• Dr. M M Bagali is Assistant Professor, HR & OB resources development by management
stream, KLE Academy of Management of Studies, has to be seen differently and scientifically
Hubli - 580 031, Karnataka. India worked out.
Email: sanbag@rediffmail.com


110 Employee Empowerment: A New Strategy for Creating a High Performance Work Force

If Japan and Japanese organizations are independent decisions to attain set goals.
admired, it is for their unique way of Empowerment is thus also a process of
managing and developing their human enhancing feelings of self-efficacy among
resources. The Japanese management ethos organizational members through the
has a long-lasting bearing at the work- identification of conditions that foster
place. Practices such as open lines of powerlessness and their removal both
communication, clear objectives, high through formal organizational practices
ethical values, discipline, encouraging and informal techniques of providing
creative work and leadership at all levels opportunities to prove efficacy.
produce miracles. Similarly, the stress on
Empowerment is seen as a process,
equality for all, an open appraisal system,
resulting in individual employees enjoying
displaying a high level of trust and faith in
autonomy, while performing their jobs.
people have produced almost miraculous
This also ensures accountability on their
results. The present buzzword in
part and thus develops a sense of
developing and managing human
ownership and increases the sense of
resources is Empowerment and creating an
fulfillment, while achieving shared
employee ownership culture. What does
organizational goals. Empowerment is also
this mean in practice?
a means of sharing decision making power
with all. When one looks at all these
The present buzzword in definitions, one can sense that
developing and managing human empowerment is an advanced means of
resources is Empowerment and human resources development and
creating an employee ownership management. Organizations are managed
culture. What does this mean In differently, depending on their size and the
practice? composition of their personnel, their style
of leadership and the way policies and
Empowerment: A new paradigm in HRM programmes are drawn up. Culture plays
Gurus daily preach the need for an important role in these matters and if
empowering the work force. Literature on empowerment is a success and can be
empowerment now abounds. extensively practised in the West and in
Empowerment means to vest authority in Japan, this is because of their
employees, so that they do not remain just organizational and national culture. Is such
the subjects of authority but can exercise it empowerment possible in India? The
at their own level. Empowerment is getting culture, the level of thinking and maturity,
employees to do what needs to be done the attitudes, the management-employee
rather than merely doing what they are told relationships, the very composition of the
to do. This means the transfer and the work force characteristic of India, leave the
acceptance of power to the lowest answer to this question wide open. The
appropriate level, so as to create industrial society of India is dominated by
opportunities for initiative, responsibility labour unions with the attitude and the
and finally commitment in all. Another thinking that we are paid to work and so
way of looking at employee empowerment we work according to our pay.
is by sharing responsibility and power Management too clearly holds the idea that
appropriately at all levels in the workers are paid to perform a task. In such
organization, and thus helping people a culture, the very idea of empowering
develop themselves by making employees is hardly thought of.


Management & Labour Studies, Vol. 26, No.2, April 2001 111

leadership was Gates' (1995) topic. In India,
The industrial society of India is little work has been done in the areas of
dominated by labour unions with employee empowerment to create high
the attitude and the thinking that performance organizations. However,
we are paid to work and so we some studies exist such as Mahapatra's
work according to our pay. (1997) The Empowered Manager; Singh's
Management too clearly holds the (1998) Empowering Oneself; ]awahar's
idea that workers are paid to (1998) Empowerment Revisited. On a
perform a task. In such a culture, wider canvas, research needs to be taken
the very idea of empowering up on many different factors to examine the
employees is hardly thought of. relationship between empowerment and
creation of a high performance
Organization do not grow by organization. The present study probes the
themselves. They have to be developed, factors that make an organization an
nurtured and continuously directed empowered one.
towards excellence and growth. In the
process, they begin to adopt new ways. On a wider canvas, research needs
Clearly, for an organization to excel in the to be taken up on many different
present century, it needs to adopt new ways factors to examine the relationship
of managing and developing its human between empowerment and creation
resources. Empowerment and empowering of a high performance organization.
employees at the work place is the answer.
Why is this so? How will an organization
OBJECTIVE OF STUDY
change by practising empowerment?
The present paper is based on research
Review of work done
undertaken to study how a model company
A number of fairly recent studies have can be created with innovative work-place
examined the question of empowerment programmes, policies, practices and how,
and its positive effects on developing high because of such innovative practices,
performance organizations. This was the empowered employees can change the very
topic of Pierce, et al 1991. Empowerment face of the organization and help it remain
and participation were treated by Foster at the top of the field. At the same, we
(1992) and Perry (1992). Bowen (1995), probed whether it was the system, the
Smilor (1996) considered Empowerment practices, the policies or the leadership that
and leadership culture. Empowerment and made the organization grow and excel, and
a new-old paradigm of High performance the role played by an innovative approach
was Hoerr's (1998) topic. Empowerment to human resources development and
and Open Book Management was management. The broader objective was to
considered by Beyster (1999). The present know the various strategies adopted by
author has examined the relations between organizations to empower employees, and
empowerment and its implications in how they differ from one another.
organization development and in
Hypothesis
developing a high performance work-force
(1999,2000). Mackin and Rodgers (1996) In our present work, we made several
dealt with Empowerment and Ownership hypotheses.
culture, as also Kardas (1993). Rosen (1993) a) If an organization wants fundamental
wrote on Empowerment and healthy changes, it must change the
Companies; while Empowerment and fundamentals.



b) Organizations with a high level of job Data Collection
autonomy have a high morale work
Many empowerment factors were
force.
identified such as accountability, attitudes,
c) The organizational environment can belief systems, career planning,
have a powerful influence on the communication, committees and councils,
perception of empowerment. culture, decision making processes,
d) Individuals can have high level delegation, discipline, ethics, the feedback
involvement in shaping and system, the faith shown, group processes,
influencing organizational activities industrial democracy, information sharing,
when there is a positive climate. leadership and management style,
e) Both individual and organizational motivation, organizational ethos, power
achievements can be fostered through distribution, politics, trust, team work,
a sense of belonging;. worker participation and the like. These
were put to the test at length. The collection
f) Individuals who perceive that they and examining of the data was done in
have a high degree of access to three stages:
information will report a higher level
of commitment. First, a questionnaire and schedules
were drawn up after identifying the
g) Empowerment at the work place in an
relevant empowerment factors and these
organization makes leaders unnecessary.
were tested.
An important point of enquiry was why
Next, formal and informal observations
it was possible for the organization in the
and discussions were held at the work-
present study, though Indian, to grow
place regarding the system and the
systematically and what unique,
practices in vogue.
innovative techniques were practised for
employee empowerment. Finally, based on these two
An important point of enquiry was why observations a final discussion was held on
it was possible for the organization in the the responses elicited to the questionnaire
present study, though Indian, to grow and the observations made.
systematically and what unique, RESULTS
innovative techniques were practised for
employee empowerment. The company has been following
innovative practices in the development
TARGET GROUP AND METHOD and management of human resources. As
The study was undertaken in a 115 one worker put it, we all dream of
years old engineering based company, with excellence, we all think of excellence, and
a total work force of 100 employees. The we all deliver excellence. The unique
work place is a mix of highly qualified practices followed in this organization are:
people and others in terms of their
academic background. This is an important As one worker put it, we all dream
factor examined, that is, to know whether of excellence, we all think of
an educational background is important in excellence, and we all deliver
the practice of empowerment and what its excellence.
implications are. Since, empowerment and
the practice of empowerment is a holistic • a refined culture,
idea, involving al l, everyone in the
organization formed the target group. • a flat organizational structure,



• there are no designated positions, transparent approach in values such as
honesty, truthfulness, respect and value
• high respect is shown for human
beings, shown to the human being. Risk taking
must be allowed, and also healthy criticism
• there is a transparent ethos, for the larger benefit. The "grape vine"
• there are open lines of communication must be discouraged. Common rooms are
and a participative culture, to be shared. The concept of the
organization as being above the individual
• team work is stressed, must be held by all. Another officer stated
• a high level of trust is evident in that these are important factors and the
interpersonal relations, roots for the success of empowerment
strategies. Culture helps create an
• each one is a decision maker. organization, but a refined culture helps
• gossip is eschewed, create a healthy work force.
• there is an open system of feedback.. Flat Organizational Structure
We shall now make some comments on This can be seen in two ways. There are
each of these innovative aspects of the no designated positions in practice; but on
culture as they exist in the organization. paper there is a hierarchy for legal
Refined Culture purposes. Otherwise, each one is a manager
and even a CEO. Each one has the right to
Everything in the process of work in the entire department and each one
organizational development starts with the does his work on his own. There are no
type of culture that an organization messengers, peons, or other subordinate
possesses. Culture defines the values, the personnel. Everyone is a self made man or
beliefs, the thinking of the organization and women and performs all the jobs required
the principles it stands for. As the CEO put of him or her. A unique feature of this
it, if empowerment and employee organization is a "no bell" culture. Even for
ownership is found in this organization, going to lunch or for the start or end of a
this is only because of the culture that has shift, employees know the time and work
been created in it. The first task was to accordingly and not because a bell is rung.
create a climate of progressive culture, You need to perform a particular job, you
because the work place is a combination of may use any place, as long as the work
many facets of each individual's thinking fulfills its designated objectives.
and perceptions. Refined culture is not just
a matter of thinking, it should be Each one is a manager and even a
continuously practised by all. While CEO. Each one has the right to
everyone in an organization will share the work in the entire department and
organization's culture, not all will do so to each one does his work on his own.
the same degree. There can be a dominant There are no messengers, peons, or
culture, but also a number of subcultures, other subordinate personnel.
but they should be refined. This is pivotal,
because, all practices in empowering There is no red-tap ism, if any
employees rest on the concept of culture. individual wants to meet the CEO or any
A few initial culture development areas are other official, he can approach the person
a climate of trust, of mutuality and freedom straight without any hierarchical procedure
of expression. There should be a totally or formal permission. This is a unique



practice which requires a high level of High Respect for Human Beings
innovative thinking and much maturity in
The CEO is as equal as any employee
the work-force. As one employee put it, by in the organization and any employee is
virtue of being a flat management, it considered to have the same intrinsic worth
becomes easy for us to improve on the job as the CEO. Every employee is respected
and to learn. regardless of what his position is in the
No Designated Positions organization. If you are working for and
contributing to the organization, you are
Yes, there are designated positions, but respected. But, everyone is a contributor
this is only to help outside visitors so as to and hence everyone is respected here. Even
guide them in the organization. If at all one lower rank workers are treated as equal
person is separated from another, this is members of the organization. Everyone is
done only on the basis of the job one needs held in high esteem and the self worth of
to perform at a particular place on a each person is held high. As the CEO puts
particular machine. We do not have any it, you must start by raising their self-
room boys, letters to deliver, no separate esteem. Treat them as winners and they
dining rooms, no separate water or tea become winners, respect them and they
arrangements, or difference in the food will respect you. Treat them as equ~l
prepared and no separate queues for owners of the company and surely they Will
anything. If I (as CEO) need anything, I give their best and produce high quality
have to fetch it myself. The dining hall is work. The path to this high level of respect
common and, as all line up, I too line up was not easy, particularly for managers
like anybody else. As the CEO puts it, "we who were asked to change from authority
are bonded by our work relationship and figures to advisers, counselors and guides.
you are respected, to the extent you do Initially, it was very tough, but now if you
good work." look back you clearly see that people
consider this as a nice place to work in. In
A worker puts it otherwise. When
fact, as the CEO puts it, greater emphasis
asked how you feet when you sit with your
was laid on and work was done in the area
CEO and eat, the answer reflected, mature
of dissipating egos; and our experience has
thinking: "when you are dining, it is
shown that when egos and status clash,
difficult to understand how many CEOs
empowerment is impossible. Education is
there are, because each is treated like a CEO
of primary importance and each one had
by the others and each behaves like a CEO
to be educated in this direction. As an HR
himself. Nobody thinks he should be
Executive puts it, initially, one has to be told
respected because he is the top man, nor
about all these practices through education;
do I feel I should show him extra respect.
otherwise, there might be misunderstandings
Issues of a disturbing nature are left at the and the consequences would be serious and
work place and the dining hall is to eat our objective would not be achieved.
one's food. We don't mix the two. This is
how the organization's culture has been
The CEO is as equal as any employee
built up over a period of time.As an officer
in the organization and any
says, the culture of sharing is such that
employee is considered to have the
anyone can use the CEO's chair provided
same intrinsic worth as the CEO.
he works to fulfil the organization's
Every employee is respected
objectives. Clearly there is no fixed mindset
regardless of what his position is in
and less ego. This is responsible for the
the organization.
visible empowerment at work.



Transparent Ethos frequent profit sharing bonuses and stock
options. In fact, the quantum of profit
The practice of a totally transparent
sharing is decided by the employees and
approach requires a high level of maturity
the management's role is only to pay, so
on the part of employees working in the
says the finance manager. Clearly, the trust
organization. The organization does not
level must be very high.
have a "secrecy" and "confidentiality"
practice. These words are never found on
any policy, paper or on any wall of the In fact, the quantum of profit
rooms. Such a level of transparency is sharing is decided by the
practised that everybody knows what is employees and the management's
going on in the organization. Every policy, role is only to pay, so says the
mission, goal, objective, planning, activity finance manager. Clearly, the trust
is known. As the CEO puts it, my room does level must be very high.
not have any sign "knock and enter" or "no
admission without permission". Anyone Open lines of Communication
can come in at any time and discuss Knowing things is knowing an
business plans or work-place issues with organization. Communication among all is
me. In fact, when I have a guest from clear so that each employee knows all the
outside, any employee can come in, sit activities of the organization. Meetings,
down and discuss, if he has a point to make. their outcomes, future plans are kept open
He can even watch the discussion going on. and everyone has the right to know and it
Guests for me, are guests of all in the is every person's duty to communicate. In
organization. If any guest comes in my fact, transparency in communication and
absence, any employee, if he feels he can information sharing is a way of life in the
deal with him can sit and discuss our organization, adds an employee. The basic
business plans. As one employee puts it, idea is to remove doubts and suspicions.
being transparent also means accepting its To cite an example, the CEO says that even
consequences, failures and risks. If people a watchman tells others where the CEO is,
are afraid of risks, nothing new will what he is doing and what was the outcome
happen. This is how an employee of any meeting. Indeed, the visiting guest,
ownership culture is built up and each one the business deal and its worth are known
sees himself as an owner of the to a person like the watchman. This shows
organization. how we value each person in the
A step further, says the CEO: when I am organization and do not restrict
going on a business tour, all the details of information only to a few. As the person
my tour, the places, and the persons to be who is concerned with HR says, the
met, are put up on the notice board. My company is working to find newer ways for
employees know where I am, what I am open lines of communication and
doing, and in fact, what the deal is and its information sharing and this is paying off.
worth. This is how we create positive When the employees know every affair in
thinking and remove suspicions and the organization, says an HR executive,
doubts. Even our company accounts are their feelings are positive towards the
open to all, a practice of open book organization and they put more energy into
management. Thus all can see our financial their work. This is empowering employees.
position, and understand the financial Similarly, if any employee has an idea, he
effects of their jobs. They also share in the can share it with any other without
financial successes of the company through anyone's formal permission.



Participative Culture philosophy of teamwork. While
constituting teams, the composition is very
Participation is a way of life and work
important; each person is free to join the
in the organization. Everyone has the
team of his or her choice. However, the
freedom to form a committee and can
CEO stresses that while people choose their
~ormulate a plan, strategy or programme
teems, it is always ensured that they take
In the organizational development process.
account of the nature of the work and their
The number of members to be in a
committee, its responsibility, function, and own skills. Also, each team is made
accountable for its actions. Even the
its area of work are decided only by the
employees. The work of the committee is functioning of the teams is transparent and
communicated to all through a display of an employee says, each mission or goal of
information. Today, as an executive puts it, the teams is put up on the notice board and
since each employee takes part with full communicated to all, so that each knows
responsibility, productivity is high and what is going on and suggestions and
employee turnover is almost nil. What is improvements are welcomed. Team and
still more remarkable is the high level of group working is a part of work here and
satisfaction of each employee on the job. In since there is total transparency and open
the words of the CEO, one must create a lines of communication, lessons from every
conducive work environment. In doing so, team are always shared.
one needs to follow a very different High level of Trust & Faith
approach towards HR development and
management which will lead to a total The CEO asserts that trust in human
participative approach .. Initially it was the beings is the key to everything. Thus time
management that took all the initiatives, clocks were thrown out long ago. The CEO
but now things have changed: goes on to say, "I personally believe that
organizational strategy preparation, unless you have trust and faith in your
writing out the mission of the organization, employees, you cannot expect big returns
the code of conduct, goal setting, the and create a good healthy work place. Trust
statement of values, discipline are now is a way of life and there are many instance
looked after by the employees. As an and systems indicating this." When an
employee proudly says, everyone can take employee wants to take a day off, we do
a part in the proceeding of the Annual not follow any paper procedure of applying
General meeting and unnecessary for leave. The group decides on it (in some
expenditure, if any, can be questioned. case the department does) and even I, as
CEO, am not aware of such leave taken by
an employee. The group is given full
As an employee prOUdly says,
authority to act at such times and the extra
everyone can take a part in the
work is distributed among the group
proceeding of the Annual General
members so that things continue as before.
meeting and unnecessary
The trust level is high here because nobody
expenditure, if any, can be
doubts or spies or questions the absence.
questioned.
The moment a person says, he needs a day
off, the straight answer is always "YES",
Team Approach
says an employee. An employee, when
Team work constitutes an important asked, what he felt about the system,
element in organizational development. All simply responded "I am being trusted here,
in this organization believe that people what else is needed to work in an
achieve more together which is the organization". Another instance, given by



an employee, who is proud of the culture can act independently. Posting decisions in
of empowerment is that everyone can use an appropriate place makes them known
the organization's resources, and all trust to all." Another employee states "we feel
him. happy to take quality decisions because
there is no suspicion or cross checking."
Another instance, given by an Absence of Gossip
employee, who is proud of the
culture of empowerment is that If any person is found gossiping at any
everyone can use the organization's time, that person would lose his job. An
resources, and all trust him. organization can develop to great heights
only if the thinking is of a high standard
Another angle of the culture is seen and for this, the attitudes and perceptions
when a failure takes place. No individual of the employees must be of a high
is then blamed, but the whole group takes standard. Developing a refined culture is
the responsibility. Making victims is not the what matters so that the organization gives
culture of the organization, as one puts it. high value to individuals and gossip
There is such a culture of trust and simply is not entertained. No one is
togetherness that accountability is always allowed to play with the weaknesses of
with all. When asked, how one could others. Whether big or small, qualified or
develop such a climate, an employee, who not, contributing more or less, officer or
is proud to work in such an atmosphere, employee, everyone is a member of the
says, "we have not come here to make our family and each is a contributor. The
living; we have come here to develop and absence of gossip makes everybody feel
live with the organization. When secure. When each one is responsible and
management treats us as bosses and accountable, no grape vine is possible. At
owners, nothing can make us think small." the same time, fun and humour are very
high in the organization, which shows it is
Decision making Style healthy and positive. If you are aiming at a
The CEO asserts that if we have been high quality work force, there must be fun
able to create such a workplace, it is only in the organization. Then the tendency to
because we are clear about concepts of gossip gets diffused.
objectivity and subjectivity, in dealing with
all matters at the work place. Decision At the same time, fun and humour
making is always based on issues and not are very high in the organization,
on subjective or personal factors. Each one which shows it is healthy and
is given a say in deciding the issue under positive. If you are aiming at a high
consideration and no one is favoured quality work force, there must be
because of his position. One employee said fun in the organiza~ion. Then the
"1 always am cautious, because of the full tendency to gossip gets diffused.
freedom given here in deciding matters
concerning the organization, which makes Feed back
us very careful. We can all decide on future
courses of action and what policies are to Open feed back is crucial and for feed
be formulated. 1feel great satisfaction when back to be a success, one must be willing
1know even 1can write my own career plan to give it without fear. However, there must
and decide on the next step. If a matter also exist an atmosphere and a system in
concerns the work, there is no need for which employees are not afraid of giving
permission from the management and we it. The CEO rightly says, the secret is to



create willingness among all employees to each one taking responsibility, widespread
give open feedback where everyone, from ability to take decisions, high job
top to bottom, can speak his mind without satisfaction at the work-place, very low
the fear of retaliation in one's professional turnover, less absenteeism, high quality
life. He further adds, the process isn't easy work, discipline, open discussions, these
and you don't get an instant reaction, while were the outcome of this practice of
empowering the employees in this area. As empowerment. Of course, there are no
one employee proudly claims, there is no industrial problems and there is perfect
organization in this region, where the peace. As an HR executive says, "we have
employee can openly criticize the top boss's several committees set up by the
action, if the need arises. This is an employees, but none in the area of
organization, where one can freely and industrial relations such as a dispute
openly criticize the system, if this needs to settlement committee, a grievance handling
be done. All feedback is taken and committee. Clearly the employees are
discussed at appropriate levels. happy." Empowerment is not just sharing
Management sees each feedback as an responsibility and power, but creating a
improvement area. One employee even work place from where everybody can go
stated that he was chosen as "The Best Feed back with a big smile on their face each day.
Back Employee" when I gave my opinion At the same time, productivity is high and
on how and why the company should a good impression is created among
invest in Yoga and gymnastics. As a result, customer.
there are now separate gymnastics facilities
Conclusion
costing Rs. 20-30 lakhs, something
incredible, anywhere else. The principal reason why the
organization has been able to create such
A Systems Approach
empowerment is the leader and the type
Empowerment is not only sharing of leadership given. The leader has been
responsibility and giving power, but, like a drum major leading a band and
includes other systems, which are part of walking in front of it. Also, certain traits
the empowerment process as seen in this are necessary in the employees of an
study. This style of functioning is organization, if it is to succeed in practising
something unique in the Indian context and empowerment. These are: assertiveness,
truly noteworthy. The common thinking in self motivation, transparency, tenacity in
the Indian labour community that we are character, growth oriented attitudes, less
paid to work, shows how difficult it is to egoism, an extrovert nature, willingness to
develop an employee empowerment and be an open communicator, team working
ownership culture. When asked how it was ability, willingness to take risks, openness
possible to create such a system resulting to new ideas. It should also be noted that
in a high performing work-force, the CEO empowerment and empowering employees
replied that if such culture had been is a holist approach and all systems and
developed over the years, it is because a people should join hands in working at it.
whole system was created and worked on If one element in this system is missing,
continuously. empowerment can hardly be practised and
the organizational development will be
The experiment is a long journey, but
defective.
the implications are also far reaching: a
highly motivated work-force, a creative We are likely to see more efforts at
and innovative approach at the work-place, empowerment in the future. Today,



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