THE ROLE OF EMPOWERMENT FOR SERVICE ENVIRONMENT

Empowerment

Definition: An increase in autonomy and taking initiative. It affects the way of working, organizing, reln between ees and mgrs. Today- Empwmt is seen as a way to improve perf, quality, customer satisfaction Can be approached in 2 levels: 1. The level of the relationship between the individual employee and supervisor 2. The level of the broader system, the organization.

OBJECTIVES
The relevance of the notion of empowerment for service organizations What empowerment means at the level of the individual employee The implications of empowerment for leadership The implications of empowerment for the organization as a whole The consequences of empowerment for organizations in terms of outcomes

The Relevance of Empowerment for Service Environments

Employees need a certain degree of autonomy during service encounter. The significance of this autonomy will vary according to the type of service activities, as well as the strategies followed.

Empowerment Approach
PRODUCTION LINE APPROACH - Industrial way of delivering services - Characterised by simplication of tasks, clear division of labour, substitution of equipment and systems for employees, and little decision-making discretion afforded to employees. EMPOWERED APPROACH - Less emphasis is put on the systems surrounding the service employees, who are given more discretion and autonomy

Involve quicker on-line responses to customer demands Leads to higher levels of employee satisfaction Better quality of customer interaction Higher levels of commitment Quality improvement and innovation Requires greater investment in selection and training Higher labour costs Can possibly lead to customer impressions of not being correctly treated (nonstandardized treatment)

Contingencies of Empowerment
Contingency Basic business strategy Tie to customer Technology Environmental Types of people Production-line approach Low cost, high volume Transaction, short-time period Routine, simple Predictable, few surprises Theory X manager, employees with low growth needs, low social needs and weak interpersonal skills Empowerment approach Differentiation, customized, personalized Relationship, long time period Non-routine, complex Unpredictable, many surprises Theory Y manager, employees with low needs, high social needs and strong interpersonal skills

Empowerment: The Employee & The Supervisor

Empowerment at the level of the individual employee

Autonomy motivates people to be more initiative 5 elements involved: - meaning - competence - self-determination - strategic autonomy - impact

Leadership & Empowerment

Overpowering leadership Powerless leadership Power-building leadership Empowering leadership

Empowerment: The Organization

People cannot become empowered when they are not supported by an environment that stimulates actions such as initiative taking and autonomy. Thus it is vital to create this environment through an empowered organization.

Empowerment: The Organization

Sharing information: - The service concept - The service delivery process as a whole - Past and current performance as well as future targets - The setting of goals Knowledge and competence development - training programmes - business & management courses - increasing technical skills and soft skills Redistributing rewards

Conclusion
Empowerment is NOT a quick fix. It requires rethinking organizational functioning, developing competencies, introducing new ways of leadership. Empowerment affects quality & productivity, profitability, and employee satisfaction Empowerment as a motivational construct Empowerment has many positive implications