1. Empowerment MBUS 612 Prof. Elloy

2. Empowerment Unless empowerment starts at the top, it is going nowhere. People already have power through their knowledge and motivation. Empowerment is letting this power out! Empowerment means you have freedom to act; it also means you are accountable for results. Empowerment isn't magic. It consists of a few simple steps and a lot of patience.

3. First Key to Empowerment The first key is to share information with everyone. Give people the information to act; then look for magic to happen! People without information cannot act responsibly. People with information are compelled to act responsibly.

4. First Key to Empowerment (cont.) Sharing information with everyone: Is the first key in empowering people Lets people understand the current situation Begins to build trust throughout the organization Breaks down traditional hierarchical thinking Helps people be more responsible Encourages people to act like owners of the organization

5. Second Key to Empowerment The second key is to create autonomy through boundaries. Boundary areas that create autonomy: 1. Purpose – What business are you in? 2. Values – What are your operational guidelines? 3. Image – What is your picture of the future? 4. Goals – What, when, where, and how do you do what you you do? 5. Roles – Who does what? 6. Organizational structure and systems – How do you support what you want to do?

6. Creating autonomy through boundaries: Builds upon information sharing Clarifies the vision (big picture) with input from everyone Helps translate the vision into roles and goals (little pictures) Defines values and rules that underlie desired actions; when values are clear, decision making is easier Develops structures and procedures that empower people Reminds us that it is a journey Second Key to Empowerment (cont.)

7. Vision Vision comes alive when everyone sees where his or her contribution makes a difference.

8. Third Key to Empowerment The third key is to replace the hierarchy with self-directed teams. Empowerment comes from teaching others things they can do to become less dependent on you.

9. Third Key to Empowerment (cont.) Replace the hierarchy with self-directed teams: Empowered teams can do more than empowered individuals. People don't start out knowing how to work in self-directed teams. Dissatisfaction is a natural step in the process. Everyone has to be trained in team skills. Commitment and support have to come from the top. Teams with information and skills can replace the old hierarchy.

10. Benefits of Self-Directed Teams Increased job satisfaction Attitude change from "have to" to "want to" Greater employee commitment Better communication between employees and management More efficient decision-making process Improved quality Reduced operating costs More profitable organization