Impact of Empowerment

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IMPACT OF EMPLOYEE EMPOWERMENT ON EMPLOYEE JOB SATISFACTION. A CASE STUDY OF COCA BEVERAGES, PAKISTAN

CHAPTER 1

1.1 INTRODUCTION
In today’s competitive business environment organizations need to constantly transform their business processes, often one or the other form of change management is experienced in the organizations. Kemp & Dwyer (2001) highlighted in their study that the resistance towards change can be easily overcome by communicating effectively with the employees and giving value to their opinions. They argued that employees perform extremely well if they are realized that they can significantly contribute for the organization with their creative ideas and involvement in processes. Because of the recession phase and downfall in economy the organizations cannot exactly rely on monetary measures to keep the work force happy. What they look forward for is the ultimate working environment and other factors which could contribute towards the employee satisfaction. Similarly empowerment practices play a significant role in making employees satisfied of their jobs. Empowerment and job satisfaction have been raised as important issues and emphasized as ways to reduce employee turnover, improve workplace environments, and help organizations function effectively. By identifying and exploring this relationship, it is hoped that implementation of such concepts and strategy will help Coca-Cola management to reduce sense of dissatisfaction among employees towards the company. There is considerable research evidence in this regard. Therefore this study has been carried out to examine the relationship between employee empowerment and employee job satisfaction in the Coca Cola Company in Pakistan.

1.2 EMPOWERMENT
Empowerment refers to transferring decision-making power to employees in the lower management to enable them to use their skills more effectively and flexibly. It encourages workers to take the initiatives to improve operations, reduce costs, and improve product quality and customer service. It gives employee a liberty to an extent to perform work in the way they want while ensuring they do not miss the deliverables. An organization committed towards providing empowerment to its employees, there prevails a culture of encouraging creative thinking and involving employees in the decision making process. A culture inductive towards empowerment allows the management to transfer the power and responsibility to employees. This enables the employees to come up with creative solutions for fixing the problems and devise ways to provide the best customer service within specified organizational limits. Employee Empowerment is usually defined as employee’s belief of being trusted and involved in organizational decision making. This includes allowance to make decisions on routine work tasks as well as non-routine matters that emerge. True essence of empowerment also caters appreciation for creativity and implementation of novel ideas to improve organizational processes, involvement in goal setting, and a culture of team work. 1.3 BENEFITS OF EMPOWERMENT

 Empowerment offers endless benefits and fruits both for the organization and employees. The literature on empowerment has clearly highlighted the benefits of empowerment. Thomas Petzinger who is a well-known writer of management issues in the Wall Street Journal has written many articles in this regard.  He writes in his article ‘Front lines’: "As a society we know the best way to organize people is freeing them to organize themselves.  Why should it be any different in business?" Similarly another Wall Street Journal writer Apple emphasized on empowerment by commenting that empowerment is simply the best way of encouraging, motivating, and directing employees towards the organizational success. Kanter (1979)  also supported the culture of empowerment in organizations and focused on usefulness of employee empowerment. He narrated that power sharing by the supervisors...
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