Sunday, August 16, 2009

Why Should we Empower Employees?

Empowering Employees - The Need of Modern Businesses

I came across an interesting article at BizHelp24.com that I considered sharing with you. Its on Employee Empowerment. I am sure all of you would have faced a similar situation as stated below.


Taste this Case:

You buy a Television from an electrical store.

John the sales person advises you, and you go home with the TV.

When you arrive home the TV has a big scratch across the side.

You return to the store and tell John of your problem, and agree that for a partial refund you will accept the scratched TV.

John says this is a fair arrangement, but he needs to check with his line manager if this is ok.

(If John was sufficiently empowered you could receive the refund and leave satisfied now)

John comes back 5 minutes later with his manager, who asks you to explain the problem again. You go through the details of the purchase and the problem, and the manager agrees to the solution, but needs authorisation from the store manager.

(If the manager was sufficiently empowered you could receive the refund and leave now)

The store manager comes back after 5 minutes with John and asks you to explain the situation again. You go through the details of the problem, and the store manager agrees to a partial refund. However first he needs to get an authorisation number from Head Office.

(If the store manager was sufficiently empowered you could receive the refund and leave now)

After 5 minutes on the phone the store manager comes back and agrees to process the refund. Finally the problem has been solved, but at what cost?

To sort the problem the store has paid for:
  1. John’s time
  2. His manager’s time
  3. The store manager’s time
  4. The head office’s time
Not only that, but in the process of waiting and repeating yourself you may have (as most people would) decided not to bother shopping with their store again.

If John was given the power to do his job properly, the company would have saved the employee time costs, as well as kept a customer.

The answer in this case would be for John to know, and be able to enforce the company policy.

(E.g.: Maximum 10% discount or replacing the product)

Instead, you became a victim of un-empowerment disease, or “Run and check” syndrome.



Its indeed interesting to know that the same power and authority structures that HR built and protect are at most times responsible for restraining employees from giving their best.

Its time Organizations ( especially HR) show more trust on employees and empower them to face Business challenges. This is especially to those corporations that are so dependent on restraining power structures for their survival thereby crippling all chances of Innovation and Change.

One can see the following benefits of Employee Empowerment:

1. Freedom in Decision Making
2. Total ACCOUNTABILITY for the decisions taken
3. Customer Delight
4. Employee Satisfaction
5. Top Management is freed from Day to Day operational Decision and will have more time for Strategy
6. Gets Rid of Bureaucracy in the Organisation
7. Finally resulting in overall enhancement of Profits.

Do you think otherwise? Please leave your comments!

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