The Making of an Empowered Workforce: Demystifying a Case of Practicing Indian Organisation

M M Bagali, PhD in HRProfessor of Management and Strategic Human Resources,

Coordinating, Research in Management,

JAIN University,

319 / 17TH CROSS / 25TH MAIN / 6th PHASE / JP NAGAR,Jain University/ Bengalore -560 078 / India

Tel: 80 43430400 / Fax: 080 26532730mm.bagali@jainuniversity.ac.in

http://in.linkedin.com/in/mmbagali

Abstract

Demystifying POWER of Empowerment: A Case of well designed HR practices

During turbulent days, organizations are increasingly seen to innovate ways to manage

business. One of these innovations is in the area of developing and managing potentials

of human resources, which often results in achieving a sustained organizational growth.

The question is how to develop HR towards global standards. On the other, various

strategies are being adopted by business organizations in this regard. One also sees a

paradigm shift from an approach understood as ‘welfare approach’ to that of an

approach commonly known as the ‘empowerment approach’. This approach of employee

empowerment has seen interesting outcomes and hence has been accepted almost all

across the world. Management experts have placed a lot of stress on the need for

empowering workforce in organization. Empowerment is seen as investing power and

vesting full authority with almost every employee in an organisation, which enables

employees to do what needs to be done rather than do what they are told to do.

Empowerment as a strategy has been successfully practiced in the west. Its role still

needs to be viewed in the Indian context.

But, do organizations in India have changed their deep-seated mind set in empowering

employees and giving complete liberty and freedom to decide organisation destiny. The

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answers could vary. But, too many companies ask workers to act like owners without

truly giving them the authority to do so. Thus, the study demystifies the power of

empowerment.

The Study:

The present work is an empirical study of an Indian Organisation in the experiment of

employee empowerment by an entrepreneur, per se. It highlights some unique

strategies adopted for managing human resources whose efforts have paid large

dividends to the company. The business organisation has succeeded in achieving global

standards in its output. The workforce is committed as well as efficient.

This work makes an attempt to advocate the cause of employee empowerment and calls

upon practitioners to shift their practices towards

orientation to empowerment with the assumptions that: Individual and organizational

achievements can be gained through sense of belonging; a sense of organizational life

through climate shapes behavior and moulds positive attitude towards organizational

growth; access to information about the mission, value, goals and objectives of an

organisation is positively related to empowerment; and empowerment at workplace

makes leaders redundant.

Method of Study:

Infact, this study has examined a variety of angles and images in practicing employee

empowerment and has tried to understand the fallouts of such practices at Polyhydron

Private Limited (PPL), an engineering organization (1981), manufacturing Radial pistons

pumps, Hand operated DVC and Pressure switches. The virtues which the study tested

included the sense of accountability; trustworthiness; bureaucratic approach; building

commitment in workforce; communication system; degree of freedom; management

styles and ethos; feedback system; climate of honesty; industrial democracy; knowledge

sharing; leadership approach; ownership culture; participative approach; climate of

politics; power distribution; work relationships; responsibility sharing; shared values; etc.

Empowerment was found to be a phenomenon, which is not independent. The research

saw various shades of organizational ethos and practices that lead to empowerment with

the strong belief that if an

The Results:

The company has been following innovative practices in development and management

of its human resources. In the words of an employee … ‘we all dream of excellence, we

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all think of excellence and we all deliver excellence’. Excellence in this organisation has

become an accepted way of life and every individual strives to achieve it because of the

prevailing empowered culture.

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Empowerment is not only sharing responsibility and power, but on the macro level

includes other systems, practices and ethos, which forms vital components of

empowerment process. A macro observation on these systems leaves the impression

that the style of functioning adopted by PPL organisation is something unique and truly

note-worthy, particularly when one sees it in the Indian context. The common attitude

of the labour community that ‘we are paid to work’ is an obstacle to such practices.

But, the trends, as seen in this organisation were just the reverse. This has been

possible as the management approached the issue of empowerment from the point of

view of entire organisation and developed a system. One may, therefore conclude

that, if empowerment has to come through, the organisation has to adopt a system

that will embrace the entire organisation.

The experiment has come a long way. Today, the results of such efforts are far

reaching. The organisation can safely boast of having highly motivated and committed

workforce; it has employees who handle their responsibilities professionally; capable to

take independent decisions; a low employee turnover; and a disciplined-confident

workforce with open and transparent behavior. The industrial climate is also free from

disputes. All these practices make for the good image organisation carries today in the

market.

Contribution of the work: Setting New HR Way:

The study has been undertaken to come out with concrete practices and paradigms for

overall enhancement and development of human resources and organisation as a

whole. Infact, a) a holistic approach to study empowerment practices in creating high

performance work force has been the core attempt throughout the study, with the

development of valid tool; b) several valid empowering areas have been identified to

put to practice on larger canvas with standardized empowerment scale; c) there has

been an attempt made to draw up theories, development of model and how

empowerment should be practiced step by step. The model specifies the priority area

of instituting empowerment in developing global standard strategies & practices; d)

how to create a challenging and satisfying work environment; and e) what defines a

good culture and identified which work place culture actually worked.

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End Note:

Empowerment system at workplace is an important contribution to organizational

effectiveness and growth. It is mental and emotional involvement of employees that

encourages them to contribute to goals by sharing equal responsibility. It has

numerous limitations, but, when its pre-requisites are met and the amount and type

used reasonably fit the situation, it offers potential for higher productivity, greater job

satisfaction, constant growth, continuous improvement and other innumerable long-

term benefits. A structure, procedure, institutional framework for such empowering

practice requires careful and balanced study on MACRO level. The present study has

answered several questions in creating a World Class Organization, a High Performing

Workforce and crystallizing the reasons …… “WHY TOP” performing companies are

different. Thus, the case study demystifies the power of empowerment.

Teaching Notes for the Case in Empowerment

The Making of an Empowered Workforce: Demystifying a Case of Practicing Indian Organisation

M M Bagali, PhD in HR

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Professor of Management and Strategic Human Resources,Coordinating, Research in Management,

JAIN University,

319 / 17TH CROSS / 25TH MAIN / 6th PHASE / JP NAGAR,Jain University/ Bengalore -560 078 / India

Tel: 80 43430400 / Fax: 080 26532730mm.bagali@jainuniversity.ac.in

http://in.linkedin.com/in/mmbagali

Abstract: Experience has shown that developing human resources often results in achieving a sustained organizational growth. Various strategies are being adopted by business organizations in this regard. One also sees a paradigm shift from an approach understood as ‘welfare approach’ to that of an approach commonly known as the ‘empowerment approach’. This approach of employee empowerment has seen interesting outcomes and hence has been accepted almost all across the world. This case is an empirical study of an Indian industry. It highlights some unique strategies adopted for managing human resources in this industry. The efforts have paid large dividends to the company. The workforce is committed as well as efficient. The business organization has succeeded and has been able to achieve global standards. The study makes an attempt to advocate the cause of employee empowerment and calls upon practitioners to shift their practices towards employee empowerment. The study also makes an attempt to demystify the concept of employee empowerment. On the macro level, the methods followed by the organisation studied would

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be considered revolutionary anywhere in the world and even more so in India. Infact, 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.

Key words: Empowerment, High performance work systems, Leadership, Ownership culture Goals of the Case: The goal of the present case discussion is to drive in understanding the importance of Employee Empowerment. Further, how can such practices be undertaken and what should be the methodology. Finally, to prepare the HR Manager / Executive to look at empowerment as the big step for People Management, per se.Pedagogical Objectives of the Case:1. To understand the importance of people management

2. How can HR be innovatively developed, managed and nurtured

3. Crystallizing the reasons as to “Why top companies” are different

4. To explore and analyze conditions that makes workplace empowered

5. The role of HR / CEO in changing the workplace towards empowerment

Methodology: The present case is part of Micro Strategic HR Practices, OB area, Leadership, Organizational Change, Sociology of Culture, Change Management, for creating an empowered place to work.1. This case has to be used at HR course, both at junior level and senior level management course.

2. After giving an introduction about the subject HR, its implication and the importance of HR in corporate success, this case may be introduced at multiple levels at junior level. Few sessions about HR practices at different organisations as base for understanding the concept will be the apt approach.

3. This case may run for 4 -5 hrs with a sixe group of 3-4 students in the class. The class may be given to read some initial material on HR, HR Practices, and Leadership, great place to work practices, and some present practices in

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Corporate. For this, the material could be from Indian Organisation like Infosys, WIPRO, HUL (HLL), et al.

4. Then the issue of empowerment can be discussed, with a briefing on what empowerment is all about, the scope of empowerment in different angles and practices of empowerment. The material and literature from the work done by Foundation for Enterprise Development – FED, and Beyster Institute for Entrepreneurial Employee Ownership , USA; Argyris, Chris (1998):“Empowerment: The Emperor’s new Clothes”, Harvard Business Review, May-June, pp: 98 -105 ; Lawler, E. E III , work which are published in 1986, 1988, 1992, 1994, 1995; Kantar, R. M , work which are published in 1977, 1979, 1989,1995, will be of use to students.

5. Each student group may come-up with points on HR practices, empowerment strategies, and can thorough some light on the articles published. What these research work says on the concept and how is that the organisation under the preview of the study.

6. At senior level, the case can be taken at Strategic HR paper (course). While dealing with SHRM and HR Leadership, the case can be discussed at length, with pros & cons of such practices while empowering employees. The Research work in the area can be as reference sources and understanding eth concept.

7. The case can also be discussed in OB course, in areas like Leadership, and group dynamics. While, empowering, through analysis of employee behavior change towards empowerment, what difficulties the company may undergo in such exercise, the resistance from the employees for new practices may be discussed. Since, such practice of empowerment also brings some level of anxiety and uncertainty, how employee behavior effects can be discussed. While, the case also focuses on organizational change, from the traditional style of functioning to an empowered way, how people change to new culture can be focused. As it is learnt that, while introducing new culture practices, the resistance is high and how leadership matters can be discussed and the role of HR Leadership.

8. The case can be part of MDPs, if that is taken at Executive Training Program for CEOs, HR Chiefs, and also for Dean and Directors` of B-Schools, if they are looking for

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Empowerment Practices in their Organisation. Lessons on Empowered Leadership will be an added discussion.

Assignment and Pre-preparations:Assignment and small level projects in the area of HR practices, leadership, and culture change could be done before the case is introduced to the audience (students). Literature on the reported companies practicing innovative HR would be ideal. Meeting people and HR chief while having discussion would give a concept idea and taking this case forward.Reading Material and Source of Collecting Case Material: To have understanding about the concept and make discussion more interactive, reading on the subject would be apt, and mentioned sources would guide:

Bailey, Roy (1995): How to empower people at work, UK; Management Books Ltd

Block, Peter (1987): The Empowered Manager, Jossey-Bass: San Francisco

Bowen, David. E., and Lawler, E E III (1992): “The empowerment of service workers: What, Why, How and When”, Sloan Management Review, Spring, 33(2), Pp: 31-39

Dive, Brain (2002): The Healthy Organisation: A Revolutionary Approach to People and Management, UK; Kogan Page

Eichen, Myron (1989): Employee Ownership in a Capital Intensive company, USA: Brook tree Corporation

Questions to prepare for in-class discussion:

What is your definition of Empowerment?What are the traits that need to be developed in employees?How to create an Empowerment culture and strategies in Organisation (the steps involved)?The area (scope) of Empowerment practices (the boundaries to be defined)What is the out-come of Empowerment (How to measure the after-math of such practices)?

Questions Professor can use to open the Discussion:What is not Empowerment? What do we mean when we say we want to empower people?How should the CEO and the leadership be, viz: style, traits and characteristics?

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What are the training and development programme in area of Empowerment subject be focused (Can training be given to understand the system, if so, how)?What are Ethical Management and the relation with Empowerment? How to develop Human Resources and Organisation in the present Millennium through Employee Empowerment, per se?

Questions to advance discussion during the sessions:

What should be the degree of freedom in an empowered organisation?What are the characteristics of an empowered person? Do we really need empowered people? Do we really want empowered people? How do people develop a sense of empowerment? What organizational characteristics facilitate employee empowerment? What can leaders do to facilitate employee empowerment?

Suggested Sequence and Time Frame for the case discussionFew sessions on the concept along with the best HR practices should open the discussion. Open class discussion on what they feel about the concept after a reading on the literature will lead the subject forward. After having an understanding about the concept and reading, class can be divided into 3-4 students team. The case may initially commence with the theory part on empowerment. Than what the Organization did, followed by the time line it took, and an effort to understand all that contributed to empowerment--the systems, practices, policy or the leadership. The student’s discussion should look at the differentiating strategies between the various human resource strategies adopted in empowering employees and how these strategies differed from other management practices.The case may take full length of 4-5 sessions (double timed) to come to an understanding about the entire empowerment exercise. The methodology would be discussion and presentation (ppt) Bibliography to use:

Argyris, Chris (1998): “Empowerment: The Emperor’s new Clothes”, Harvard Business Review, May-June, Pp: 98 -105

Kantar, R. M (1977): Men and Women of the Corporation. NY: Basic Books

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(1979):” Power failures in Management Circuits”, Harvard Business Review, July-Aug, Pp: 40-55

(1989): “The New Managerial Work”, Harvard Business Review, November-December: Pp: 85-92.

(1989): When Giants Learn to Dance, NY: Simon and Schuster.

(1989): When Giants learn to dance: Mastering the challenge of strategy, investment and careers in the 1990s, N. York; Simon and Schuster.

(1995): World Class: Thriving locally in the Global Economy, NY; Touchstone Rockefeller Center

(2003): “Leadership and the Psychology of Turnarounds”, Harvard Business Review, June, Pp: 48-57

Lawler, E. E III (1986): High involvement Management. San Francisco, CA; Jossey – Bass

(1988): “Choosing an involvement strategy”, Academy of Management Executive, 2: Pp: 197-204

(1992): The ultimate advantage: Creating the high Involvement Organisation, San Francisco: Jossey-Bass

(1994): “TQM and Employee empowerment: Are they compatible? Academy of Management Executive, 8(1): Pp: 68-76

Lawler, E E., III and Bowen, D E (1995) “Empowering Service Employees”, Sloan Management Review, Summer, Pp: 73-84

Lawler, E. E. III., Ledford, G. E. Jr., and Mohrman, S. A (1989): Employee Involvement in America-A Study of contemporary practice, Houston: American Productivity and Quality Center

Marty O’Neill (1999): Empowerment through Ownership, USA: Foundation for Enterprise Development and Beyster Institute for Entrepreneurial Employee Ownership

Michael Quarrey (1992): Empower employees through information sharing: Foundation Conference USA: Foundation for Enterprise Development and Beyster Institute for Entrepreneurial Employee Ownership June

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Pell, Arthur, R (1998): Guide to Managing people, India; Prentice Hall

Reynolds, M (1999):Ownership Philosophy as part of Employee Empowerment, USA, Foundation for Enterprise Development and Beyster Institute for Entrepreneurial Employee Ownership

Smith, Jane (1996): Empowering people: How to bring out the best in your Work force, UK, Kogan Page

Smilor, R (1996): Leadership in an Entrepreneurial Company, USA, Centre for Entrepreneurial Leadership, Research Centre

End Note:

But, one thing is clear. At this particular time in history, with thousands of our major organisations facing global challenges & some even unable to cope in managing to the extent needed, it is little wonder that organisational anxiety about future will be much wide spread in our country in the days to come. Expert and I are of the belief that organisation must foster Empowerment or become extinct. We are likely to see more efforts of empowerment in the future. I am put at end by stating, “there is nothing Indian organisations need more at this moment than a true RENAISSANCE strategy towards Human resource development & management at every level. Empowerment and empowering employees in organisation is the answer.

mm.bagali@jainuniversity.ac.in

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