Power…..Empower • The paradox…. • to wield power, one must give it away — that is — to empower • Rechargeable battery • Charge it up and it energizes your cell phone or laptop. Forget, and it will ultimately fail you.
What? • Not just a management buzzword! • New way of managing organizations • Competitive and complex future • Enable employees to do their best • For this you need to trust them • Delegate responsibility • Lowest level of organisation
Why? • Human resource • Most important asset of the organisation • Employee involvement • Employee commitment • Value creation for the customer • Improvements in quality & productivity • Improved business relationships with other departments • Motivation for survivors of downsizing.
Benefits • The organization: harnesses individual talents to the full • The department / team: becomes more enthusiastic, active, and successful • Employees: entrusted new responsibilities and are stretched beyond what they previously thought they could achieve
More…. • Releases the individual wisdom, creativity and energy of employees • Facilitates teamwork and harnessing of collective power of employees • Changes the managers' mind-set and leaves them with more time to engage in broad-based thinking, visioning, and nurturing.
Intrinsic Motivation Internal Justification for Decision-Making Integration for Problem Solving Shared Responsibilities Embodies…
Involves… • Trusting and communicating the employees • Stronger leadership and accountability • Becoming: • Coach, Advisor, Sponsors and Facilitators • Decision making authority in the domains of responsibility
Two common traits needed • Desire to employ people with greater skills or knowledge than they themselves possess • Ability to develop people into leaders themselves
Cultural Integration • Empowered people change cultures • 4 stages: • 1. I am doing this because my job depends on it. • 2. I am doing this because seeing others I know it is the right thing to do. • 3. I am doing this because it is right and the culture supports it. • 4……….and I will coach others to do the same.
The culture model Compliance with written policies & procedures Mimicking the behavior of others Develops his own behavioral routine. Builds up knowledge bank and int. motivators
More…. • As employee matures…. • Integrates with co workers for problem solving… • And teaches others too • Thus culture adopts less formal values and traditions
Motivation • Extrinsic: Employee is rewarded for actions • Intrinsic: decision making freedom • Employee has internal justification for his or her actions • Should guide towards the “Mission”
Expanding Job Description • Everybody in the organisation • A salesman of the product or the service • “This is not my job” attitude does not work any more. • Accept responsibility
Intranet • Learn about different job functions • Learn to work together • Self Management Work Teams • 10 to 15 people….take on responsibility of their former supervisors • Group performance is better than individuals’ performance
Corporate Employee Suggestion Schemes • Formalized mechanism for • Promoting participative management • Employee involvement • Management delayering • Remove the redundant layers
Measurement of Key Performance Indicators (KPIs) • Labour turnover • Absenteeism • Accident rate • Lost time due to various factors
Business Planning • As more people understand the business and where it is planning to go….. • More involvement and • Commitment towards organisational goals and objectives
Six Sigma & TQM • Numerous opportunities of empowerment • Employees suggesting areas and processes • Employees share their first hand experiences • Provide expert knowledge
ESOPs: ESOPs enable the employees in identifying themselves as the owner’s of the organization. • CRM: Empowers employees while enhancing customer loyalty and value. • Company wide culture-change programs: Workshops, & events to raise awareness & empower individuals & teams. E.g.. Quality circle movement
Companies that have Empowered • GE:Everybody has to know everything, so they can make the right decisions by themselves • Godrej: just in time information
More… • INTEL(TQM) • FORD (TQM) • SATURN (TQM) • Scandinavian Airline Systems (TQM) • Harley Davidson (TQM) • Eastman Kodak Co.(SMTs) And the list goes on……
HOW? Delta Airport Inn • “License to Please” • Free hotel nights to customers who are unhappy with guaranteed house keeping. United Airlines Inc. • Resolve customer complaints on the “first contact” • Expense refunds, meals, ground transportation vouchers
Internal Threats * Clashes can occur between development team members due to overlapping responsibilities. * Conflicts can arise between development team members and management over authority. * Managers must evaluate the amount of authority they want to give to development team members. Many managers have difficulty giving up authority. * Employees may resist empowerment (the "it's not my job" attitude). * Employees may need assistance in understanding or accepting new responsibilities.
External Threats • Reduction in Workforce • Due to competitive environment….labour force cutback….become an excuse for not empowering • Mergers and Acquisitions • Cultural Integration faces problems • Changing Senior Management • Might want to move things around