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Empowerment Essay

2167 words - 9 pages

Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees

By: A. Drake, J. Wong, & S. Salter

Behavioral Research in Accounting, Volume 19, pp. 71-89

Renee Claussen

Janet Page

Kevin Sandmann

Matt Schlemmer

Micah Shornack

Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees

It has been proven that the motivation level of employees can make or break an organization. This motivation level can be increased by the feeling of empowerment, and when the motivation level increases, so does organizational performance. Empowerment, a psychological ...view middle of the document...

, 2007). They hope to discover whether empowerment actually leads to higher levels of employee motivation and ultimately, increased firm effectiveness and profitability. Plus, they want to determine if the feedback and rewards have similar or dissimilar effects on the dimensions of empowerment as Spreitzer’s survey found in manager-level employees.

KEVIN’s portion (#2 & #3) -

Essentially, all acts of business are facing increased accountability. This includes all the normal aspects like proper cost allocation for things such as raw materials and labor hours, but now it even includes a balanced scorecard approach to increasing employee motivation, learning, and growth through empowerment. Until now the research done on empowerment has focused on mid-level management with little research devoted to the lower level employees who spend a significantly larger amount of time dealing directly with the customer. As companies are concerned with operating at optimal levels throughout the organization, it is more important than ever to figure out if the same factors that alter feelings of empowerment in mid-managers are the same for employees, or if they are different, what they are for the employees.

In terms of practical application, there is high incentive for upper management to understand how best to motivate it’s employees because that motivation could come with cost increases or potentially cost savings from wages if the proper non-financial incentives exist and are subsequently found. In theory, it has been thought that when a positive motivator is found it is applicable to all three dimensions of empowerment (perceived impact, competence, and self-determination), but in reality it is shown in the study that these three dimensions are often not correlated with one another by the same motivator and are even sometimes negatively correlated. Practically, upper management would be best suited to be able to identify specifically which dimensions of empowerment it wishes to motivate in order to achieve the desired levels of efficiency it requires. With the information in this study, they should be able to do just that.
MATT s portion (#4 & # 5)

The study has four sets of hypotheses that work in a chain system. The first two sets of hypotheses focus on how feedback and wage system affect an employees view of his or her performance. The feedback and wage systems are hypothesized to show a direct relationship to the three characteristics of empowerment. The first set of hypothesis states better feedback methods result in higher levels of perceived impact, competence, and self-determination in the employee. The theory behind this hypothesis derives from Spreitzer’s model from 1995, where he said the better performance information that is available, the better the overall perceived impact, competence, and self-determination.

The second set of hypotheses has a similar structure to the first set, but is focused on the wage...

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