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Effect Of Employee Empowerment On Employee Job Satisfaction 1

ABSTRACT

According to our research on The Effect of Employee Empowerment on Employee Job Satisfaction, we found a significantly positive relationship of employee empowerment on employee job satisfaction. This means that if an employee is empowered he/she is more satisfied with his/her job as compared to an underpowered employee. While doing this research we use convenient method of non-probability sampling. Data collection is through questionnaire. We perform Regression Analysis & Descriptive Statistics test on our research data. We focused our research on Private Banks located in Lahore, Pakistan.

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CONTENTS
Chapter no 1 ............................................................................................................................................. 3 1.1Introduction ......................................................................................................................................... 3 1.2 PROBLEM STATEMENT ........................................................................................................................ 8 1.3 SIGNIFICANCE OF STUDY ..................................................................................................................... 8 1.4 OBJECTIVE OF STUDY: ......................................................................................................................... 9 1.5 HYPOTHESIS/ RESEARCH QUESTION ................................................................................................... 9 1.6 RESEARCH METHODOLOGY: ............................................................................................................. 10 1.7 LIMITATION OF STUDY: ..................................................................................................................... 10 1.8 DELIMITATION OF STUDY.................................................................................................................. 10 1.9 DEFINITION OF KEY TERMS ............................................................................................................... 10 CHAPTER NO: 2 ....................................................................................................................................... 12 2.1 LITERATURE REVIEW: ........................................................................................................................ 12 Chapter no 3 ........................................................................................................................................... 29 METHODOLOGY ...................................................................................................................................... 29 3.1 RESEARCH DESIGN: ....................................................................................................................... 29 3.2 POPULATION OF THE STUDY: ........................................................................................................ 29 3.3 SAMPLE OF STUDY: ....................................................................................................................... 29 3.4 TOOLS OF DATA COLLECTION: ...................................................................................................... 30 3.5 DATA COLLECTION: ....................................................................................................................... 30 3.6 DATA ANALYSIS: ............................................................................................................................ 30 CHAPTER NO. 4 ....................................................................................................................................... 32 4.1 ANALYSIS OF DATA ............................................................................................................................ 32 Chapter no 5 ........................................................................................................................................... 42 5.1 FINDINGS:.......................................................................................................................................... 42 5.2 CONCLUSIONS ................................................................................................................................... 43 5.3 RECOMMENDATIONS........................................................................................................................ 43

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5.4 REFERENCES ...................................................................................................................................... 44

CHAPTER NO: 1

1.1INTRODUCTION
Empowerment is about pulling 200 levers rather than one big one! (Station Manager) In this global banking era employee empowerment is that phenomenal factor which is mostly stressed upon. Globalization requires that every organization must consider the fact that empowered employees are more loyal and committed to their organizations. Employee empowerment is therefore necessary to compete with others companies. Competition in globalization requires the organization to be proactive in term of decision making, to provide quick solutions of the problems. The scope of empowerment is multi-dimensional. It is difficult to define it with accuracy, but we can say that it gives an employee the discretionary power, the power to make decisions; it creates sense of belongingness with the organization; it motivates the employee to work in the best interest of the organization. Empowered employees are more satisfied with their jobs and therefore perform their duties with diligence. The concept of empowerment is defined by many authors & writers in different aspects as; Psychological empowerment involves motivational processes. Situational empowerment involves decision making. Employees are psychologically empowered

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when perceive their work as allusive & worthwhile and they are liberalized & competent to perform their allocated work & duties. When Employees are free in making decisions and they have discretion to handle the critical situations timely, they are said to be situational empowered employees. Working empowerment is one in which employees are given freedom to respond to any complaint, by the customers of the organization, promptly. The concept of empowerment is described well by greater degree of autonomy and purposeful job with greater perceived control. In other words empowerment can be described as having discretionary power, decision making power, and job enrichment, delegation of duties, liberalization and motivation to perform the job. Employee empowerment is the most positive concept and reflection of modern management style. Employee empowerment is important because it affect other elements of job like job commitment, job satisfaction, and loyalty towards organization and employee productivity. Employees are considered as most important assets of an organization, they must be retained by way of increasing their capabilities, influence strength, communication and sharing of information. Employee empowerment is one of the modern management practices that reflect autonomy, leadership and motivation of an employee. In todays globalized era every organization is facing competition, to combat this competition, organizations must have competitive advantage over other organizations. For this, the organizations must have ability to take right decision at right time, in other words they must be empowered to make decision.

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The success of every organization is depends upon employee empowerment and many companies are adopting it. But many organizations are still following the traditional management style which is highly centralized. Every organization is dependent on its workforce and the workforce in 21st century is more demanding in terms of employee empowerment. Research proved the fact that empowered employees work with dedication and motivation. Empowerment is essential for maintaining competitive advantage. Empowerment is a difficult concept and different people take different meanings of empowerment. Decentralized structures provide room for improvement, development and empowerment of employees as everyone is aware of his/her goals and ultimately is more focused to achieve his/her goals. Empowerment leads to efficiency, effectiveness, innovation and change. Empowerment means autonomy, flexibility, experience, purpose, responsibility and accountability for the results. Lawler, Mohrman, & Benson, 2001) have empirically demonstrated the positive growth of empowerment practices in the last 15 years. Today, more than 70 percent of organizations surveyed have adopted some kind of empowerment initiative for some portion of their workforce. Empowerment is practiced by these organizations because it is helpful in eliminating the debilitating and bad effects of traditional bureaucracies through high employee involvement. Empowerment is a process whereby a culture of empowerment is introduced, information is shared, competency and capability is developed, and resources and support are provided for achieving goals. Empowerment reflects sense of self-determination, sense of

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impact and sense of belongingness and loyalty. The notion of empowerment is derived from job enrichment. In the words of Murrell (1990) empowerment as an act of building, developing and increasing power by working with others, which he terms interactive empowerment, and of having the ability to influence ones own behavior, which he calls self empowerment. Empowerment is the act of strengthening an individuals beliefs in his/her sense of effectiveness, a process of changing the internal beliefs of people (Conger and Kanungo, 1987, 1988). A pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences (Locke, 1976, p. 1304).The extent to which a persons hopes, desires, and expectations, about the employment he is engaged in, are fulfilled. Job satisfaction means how much an individual is contented with his/her job and what is his/her attitude towards his/her job. Methodologically, we can define job satisfaction as an employees affective reaction to a job, based on a comparison between actual outcomes and desired outcomes (Mosadeghrad, 2003b). Job satisfaction includes different aspects regarding the job which includes pay, compensation, promotion, work condition, supervision, organizational environment, and co-operation with the co workers. Job satisfaction is of two types affective job satisfaction and cognitive job satisfaction. Affective job satisfaction is an emotional feeling that an individual have about his/her job on the other hand cognitive job satisfaction is to have particular facets of his/her job like pay, working hours, pensions and other things that are concerned with job. Job satisfaction in financial institution is as critical as in other areas of economy.

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Sources of less satisfaction are associated with working with untrained or not properly skilled staff, laborious tasks such as documentation, repetition of duties, tensions within role expectations, role ambiguity, role conflict, job/patient care, feeling overloaded, the increasing need to be available for overtime, relations with co-workers, personal factors and organizational factors. Job satisfaction is much important in any organization. Highly empowered personnel are more satisfied with their jobs they are highly innovative and have low turnover. They are more productive and took active part in decision making. Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction model. The main premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and what one has in a job. Further, the theory states that how much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/arent met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesnt value that facet. Job satisfaction is a factor by which employee likes or dislikes his/her job. Job satisfaction may be studied as a dependent variable that changes with the quality of working conditions. On the other hand, it may be viewed as an independent variable that determines a variety of consequences such as irregular work attendance

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1.2 PROBLEM STATEMENT


Problem statement is also known as the thesis topic/statement of thesis or the problem on which research/thesis is based. It usually specifies the relevant area of research. The problem statement on which our research is based is to measure The Effect of Employee Empowerment on Employee Job Satisfaction. If an employee is given empowerment how much he/she is satisfied with his/her job. Problem statement is the central idea of research. There are many factors on the basis of which we can say that employee is empowered and is satisfied with the job he/she is performing. There are many organization in which empowerment is not practiced. An employee may face many problems on the job if his job demands quick decision making. So in this research we will focus on the role empowerment plays in satisfying an employee with his/her job.

1.3 SIGNIFICANCE OF STUDY


Our topic is related to the banking sector of Pakistan. So the significance of our topic is related to banking sector Pakistan. There are many kinds of banks working in Pakistan which includes nationalized and privatized banks. Private Banks are of many types like commercial banks, specialized banks, Islamic banks, micro finance banks, foreign banks and development banks. Total no of banks working in Pakistan are 44 which includes 31 Pakistani banks and 13 foreign. Our area of study is private banks which are 22 in number. We will collect our data from their 22 private banks. Composition of overall liabilities and assets of private bank was 9797.9 billion rupees in June 2012. Yearly growth rate is 10.96%. We have seen that employees of head offices are more empowered that working in branches. If the employees are more motivated they are more

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satisfied with their jobs. If they are not motivated they are less satisfied with their work. Work environment salary and other factors are also involved in job satisfaction. In the modern competitive environment organization must provide faster solution and better quality, which the customers expect from them, require the organization employee empowerment in terms of decision making, autonomy, creativity and delegation of authority.

1.4 OBJECTIVE OF STUDY:


The main purpose of our study is to find out the reality behind our selected topic. We want to find out the answer of our questions that we have in our minds related to the research. The main focus is on the hidden truth which has not yet been discovered. Our object is to find the impact of employee empowerment on employees job satisfaction in private banking sector of Pakistan. We want to know that either the employees are satisfied with empowerment or not. According to their perception what is empowerment and job satisfaction?

1.5 HYPOTHESIS/ RESEARCH QUESTION:


Our research questions are as follows: Are employees satisfied with their jobs when they are empowered? Are employees satisfied with their jobs when they are not empowered?

We will try to give proper answers of the above questions. We will try our best to defend our research questions in such a way that they are useful for further research. We have two variables in our study one is empowerment that is independent variable and the other one is job satisfaction which is dependent.

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1.6 RESEARCH METHODOLOGY:


The nature of our research is causal. We used convenience sampling method which is a type of non probability sampling. Our population is private banking sector of Pakistan. Our sample size is 200 private banks of Pakistan. We collect our related data through questionnaires. We have taken direct interviews from the different employees of banks. In our research topic/study we used

last 20 years data for collecting data based on our research.

1.7 LIMITATION OF STUDY:


We can define limitations as the problems/hurdles faced during data collection. We face following limitations; Limited Time Load shedding Health Problems Non availability of internet

1.8 DELIMITATION OF STUDY:


Our population size is selected randomly. Data is collected only from private banking sector. Data is collected only from Lahore.

1.9 DEFINITION OF KEY TERMS:


Empowerment: A management practice of sharing information, rewards, and power with employees so that they can take initiative and make decisions. Giving employees the permission and ability to make decisions and act autonomously for the good of the company. Empowerment is based on the idea of giving employees skills,

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resources, authority, opportunity, motivation & make them responsible & accountable for outcomes of their actions. Job Satisfaction: The extent to which a person's hopes, desires, and expectations about the employment he is engaged in are fulfilled. Contentment arising out of interplay of employee's positive and negative feelings toward his or her work.

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CHAPTER NO: 2
2.1 LITERATURE REVIEW:
Empowerment as an act of building, developing and increasing power by working with others, which he terms interactive empowerment, and of having the ability to influence ones own behavior, which he calls self empowerment. (Vogt, J.F. and Murrell, K.L., 1990). Vogt identify six dimensions to empowerment: Educating Leading Mentoring/Supporting Providing Structuring

Employee empowerment from this perspective is a cognitive state of perceived control, perceived competence and goal internalization. (Menon, S.T., 1995). Menon (1995) define the Empowered State/Empowerment as; Control of ones own work, Autonomy on the job, Variations of teamwork, and Pay systems

According to him empowerment levels can be increased by way of increased decision making and changing aspects of job. In a survey to determine the effect of empowerment he found that;

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Perceived uncertainty of the job, formalization, centralization, poor

communications, non contingent/arbitrary reward systems, role ambiguity, and role conflict in the work environment lead to decreased perceptions of control and lower empowerment. Greater job autonomy and meaningfulness of the job lead to greater perceived

control and greater empowerment. Consulting, recognizing, inspiring, and mentoring behaviors of the immediate

supervisor lead to greater perceived control and greater empowerment. The greater the empowerment, the higher the internal work motivation, the higher

the job satisfaction, the lower the job stress, the greater the job involvement & greater the organizational commitment. (Spreitzer, G.M, 1996). He found that employees who are empowered have low ambiguity about their role in organizations. The leaders in empowered organizations have a wide span of control which leads to more autonomy for the employee. He defined empowerment as the degree to which an individual desires or feels able to influence his or her work role and context. A study (Martin, L.A.C., 1994) researching conditions that facilitate or impede employee empowerment, suggested that personal empowerment demanded self confidence and a strong work ethic. (Parker, M. and Slaughter, J., 1995). They equate employee empowerment to a management-by-stress approach that pushes people and systems to the breaking point by increasingly forcing workers to do more with less.

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A complicating factor in defining empowerment is that in order for empowerment to be successful, each organization must create and define it for itself. Empowerment must address the needs and culture of each unique entity. Without this self-reference, employee empowerment invariably fails because the commitment, or the sense of ownership of the concept, is not created. He also focuses on the role of the manager in empowering employees. (Sullivan, K. and Howell, J.L., 1996) According to study (Linda Honold, 1997) empowerment is a multi-dimensional approach, which cannot only be described in one dimension; it covers wide variety of concepts like Leadership, Teams and collaborative working arrangements, Job autonomy, Control over decisions, Job Enrichment and Information sharing. Empowerment also leads to employees becoming more adaptive. (Scott, S.G.,& Bruce, R.A., 1994). (Conger, J. and Kanungo, R., 1988) . They viewed empowerment as a motivational construct. They suggested that, empowerment refers to a process whereby an individuals belief in his or her self-efficacy is enhanced. Empowerment is generally the process of delegating or the decentralization of decision-making power. Empowerment is a key determinant of quality of service and customer satisfaction. Empowered employees use their discretion to take care of the customers needs and solve their problems so that service quality and customer satisfaction are enhanced. Empowerment leads to important behavioral outcomes. Empowerment enhances the self-efficacy of employees. They suggested that empowerment should be viewed as a multi dimensional construct. They defined empowerment as increased intrinsic motivation manifested in four cognitions that reflect an individuals orientation to his or her work role.

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The four cognitions include Meaning Competence Choice Impact

Empowerment becomes a process of enhancing feelings of self-efficacy among organizational members through the identification of conditions that foster powerlessness and through their removal by both formal organizational practices and informal techniques of providing efficacy information. Empowerment means creating an environment in which employee receive more authority for accomplishment of their work tasks in exchange for work outcomes. Empowerment means to share management power with employees, which is done in the organizations for two reasons i.e. to generate improved employee & organizational performance. (Lawson K. Savery, J. Alen Luks, 2001) Describe empowerment as based on four task assessments, which are influenced by individual differences in cognitive interpretations. (Thomas, K.W. and Velthouse, B.A., 1990). The purpose of employee empowerment is not only to ensure that effective decisions are made by the right employee but to provide a mechanism by which responsibilities for these decision is rested in individual & teams. (Ford, R. & Fottler, M., 1995) (Melinda J. Moye and Alan B. Henkin, 2006). Empowerment is an enabling rather than a delegating process. Enabling, from this perspective, involves creating conditions for enhancing motivation for task accomplishment through the development of a strong sense

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of personal efficacy. This paper explores the associations between employee empowerment and interpersonal trust in managers. Trust is a critical element in constructive human relationships. Interpersonal-level trust refers to the extent to which an employee is confident in, and willing to act on the basis of the words, actions, and decisions of his or her manager/supervisor (McAllister, 1995). Empowerment has been widely seen as the missing piece in the puzzle formed by growing global competition, organizational restructuring, and the increasing importance of service quality and customer satisfaction (Sewel, G. and Wilkinson, B., 1992). Empowerment has become especially important for services and hospitality, where frontline employees need the authority to respond promptly to the individual needs of the increasingly demanding consumer in increasingly unpredictable service situations (Hartline, D.M. and Ferrell, O.C., 1999). (Antonis Klidas, Peter T. van den Berg, Celeste P.M. Wilderom, 2007). This paper aims to test four potential predictors of the behavior of empowered employees during the delivery of service to customers. The research findings indicate that management style is crucial in employee empowerment. Managers willing to empower employees need to encourage them to make decisions on their own, trust them and support whatever decisions they make, praise them when they succeed and forgive, teach and coach them when they make a mistake. Empowerment has been regarded as an important concept because it potentially affects outcomes that benefit individuals and organizations. (Han, Sang-Sook., Moon, Sook.Ja.,&Yun, EunKyoung, 2009).

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Empowerment has been discussed from two different perspectives; organizational attribute and individual psychological attribute (Baker, C.M., McDaniel, A.M., Fredricson, K.C., & Gallegos, E.C., 2007). (Kay, G., Bryman, A., Dainty, A., Price, A., Naismith, N. and Soetanto, R., 2008) Claimed that employee empowerment is essentially a perceptual matter. Individual level analysis of employee empowerment is important to facilitate successful empowerment. Empowerment is the the process of gaining influence over events and outcomes of importance to an individual or group ( (Fawcett, S.R., White, G.W., Balcazar, F.E. and Suarez-Balcazar, Y., 1994). Thus, empowerment is fundamentally a motivational process by which an individual experiences a sense of enablement. (Jean-Se bastien Boudrias, Patrick Gaudreau, Andre Savoie, Alexandre J.S. Morin, 2009). Employee empowerment can be conceived in two ways: (1) As a set of managerial practices aiming at increasing employees autonom y and responsibilities &, (2) As an individual proactive work orientation. Most of the researchers have described the concept of empowerment, in terms of proactivity, on individual level, in teams. Individual-level proactive behavior refers to self-starting, future-focused action in which the individual aims to change the external situation, such as improving work methods, or to change some aspect of his/her self, such as improving ones performance by actively seeking feedback from a supervisor (Parkeret al., 2006).

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For the advocates of empowerment, empowered employees willingly take responsibility for the service encounter, they respond more quickly to customer needs, complaints and changes in customer tastes. (Barbee, C. and Bott, V., 1991) Empowerment practices decentralize power by involving employees in decision making Empowerment involves giving employees the autonomy to make decisions about how they go about their daily activities, (Carless, S.A., 2004) Types of Empowerment: 1. Psychological Empowerment: (Sprietzer, G.M.,Kizilos, M.A.,&Nason, S.W. , 1997) Psychological Empowerment as a motivational construct manifested in four cognitions: specifically, meaning, competence, self-determination, impact. They believe that employees have experience of the nature of empowerment that is called "psychological empowerment". Meaning addresses the fit between the needs of ones work role and the collection

of individual beliefs, values and behaviors (Spreitzer, 1995; Denton & Kleiman, 2001). Competence, or self-efficacy that is specific to ones work, is a belief in ones

capability to perform work activities with skill and is similar to the concepts of agency beliefs, personal mastery, or effort-performance expectancy (Spreitzer, 1995; Denton &Kleiman, 2001). Self-determination or autonomy involves exercising control over the methods

used to perform work activities, the scheduling of those activities, and the standards used to judge performance (Spreitzer, 1995; Denton &Kleiman, 2001; Breaugh, 1985).

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Impact is the degree to which one can influence strategic, administration, or

operating outcomes in ones department or work unit (Spreitzer, 1995; Denton &Kleiman, 2001). According to this concept Psychological Empowerment as a group of psychological states essential for a person to feel that he or she can control the relationship to his or her own work. Instead of focusing on managerial practices which share power among employees at different levels, the psychological vantage point focus on employees experience of their own work and the nature of that unique experience. (Vacharakiat, Marayart, 2008). (RahmatollahAllahyari, Behzadshahbazi, SeyedMohamadMirkamali, Kamal Kharazi., 2011), The aim of this research was to investigate the relationship between the empowerment and organizational learning. They explain that psychological empowerment based on organizational learning. There is a significant relation between empowerment dimensions and its elements with organizational learning. Among empowerment dimensions, incorporation has the greatest relation with overall organizational learning. (Spreitzer, G. M., 1992) Empowerment is a continuous variable; people can be viewed as more or less empowered, rather than empowered or not empowered. She argues that psychological empowerment extends job enrichment theory in several ways. She stressed that individuals may have a voice in their organization to drive influence (impact). Psychological empowerment is a cognition that complements the job characteristics in the organizational environment. Empowerment is at the individual level of analysis versus job enrichment which has been aggregated.

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(Spreitzer, G. M., 1992) . She has helped define PE as a global mindset including four cognitions reflecting a proactive orientation with regard to ones role in the organization. Empowered individuals: (1) Find meaning in their work role. (2) Feel competent to perform their work role. (3) Have a feeling of self-determination with regard to specific means to achieve expected results. (4) Believe that they can have a real impact on organizational outcomes. 2. Work Empowerment: Work empowerment is resultant concept developed from Expectancy Theory. (Vroom, V.H., 1995) Expectancy theory recognizes the forces within individuals in the environment which affect an individuals behavior. It assumes that the employee can decide how much effort he puts in, depending on his motivation. (Conger, J. and Kanungo, R., 1988) Examines work empowerment as a relational construct and as a motivational construct. As a relational construct, work empowerment concerns influences of managerial practices on employee participation. Empowerment occurs when power of the superior is relinquished to subordinates, and with it authority and responsibility. (Anita M.M. Liu and W.M. Chiu, Richard Fellows, 2007) .When reviewing work empowerment as a motivational construct, it refers to the perception of employees on their power, autonomy and control. Work empowerment is, therefore, multi dimensional in nature, involving delegation of power by managers and how individuals perceive and internalize such power. Work empowerment is an antecedent of commitment, i.e. the

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individuals perceived extent of work empowerment may increase/decrease the sense of organizational commitment. Such changes in commitment may ultimately affect organizational performance; hence, an understanding of the relationship between work empowerment and commitment is desirable. Work empowerment enhances self-efficacy and, through motivation and commitment, leads to increased performance and effectiveness. 3. Behavioral Empowerment: BE was defined as relatively self-determined behaviors aimed at securing work effectiveness or at improving work efficiency within the organization. Approaches to Empowerment: Many researchers have defined empowerment in different ways: 1. Situational Approach: Situational approach concerns passing power from higher-level management to employees by involving them in decision making. This approach is also known as relational or management practice approach. (Conger, J. and Kanungo, R., 1988). According to (Kay, G., Bryman, A., Dainty, A., Price, A., Naismith, N. and Soetanto, R., 2008) the situational approach is a dilemma for managers as its success depends on their ability to reconcile the loss of control with the need for goal congruence. They also point out that the situational approach failed to address the cognitive state of employees. 2. Psychological Approach: Psychological approach puts less emphasis on delegation of decision-making. Instead, this approach stresses motivational processes in workers. The psychological approach

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views empowerment as various psychological cognitions that contribute to enhanced intrinsic motivation. (Conger, J. and Kanungo, R., 1988). 3. Structural Approach: Empowerment is deeply rooted in job design and occurs through objective and, often, formal organizational changes that grant individuals greater latitude to make decisions and exert influence regarding their work. (Liden, R.C. & Arad, 1996)). (Mills, P. K. and Ungson, G. R., 2003), however, argue that the structural perspective of empowerment represents a moral hazard dilemma for managers, as its success or failure depends on the ability of managers to reconcile the potential inherent loss of control with the fundamental organizational need for goal congruence. This perspective of empowerment is also criticized for its failure to address the cognitive state of those being empowered. Dimensions of Empowerment: (Petter, J., Byrnes, P., Choi, D.-L., Fegan, F. and Miller, R., 2002). He Presented seven dimension model of empowerment. This study identified four dimension of empowerment: Autonomy Responsibility Information Creativity.

The study (Thomas, K.W. and Velthouse, B.A., 1990) explains that the psychological cognitions of employee empowerment include; Meaningfulness

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Competence Choice Impact

The study of (Seung-Bum Yang, Sang Ok Choi, 2009) identified four dimension of empowerment: Autonomy Responsibility Information Creativity

Job satisfaction is a positive mood resulting from the evaluation of the works and work experiences of the employees' (Brief, A. P., 1998). Job satisfaction, as a constitutional concept, contains the features of the job and the features of job-related environment. (Churchill, 1974). (Silva, P, 2006). He defined job satisfaction as pleasurable feeling that arises from ones workplace. (Price, J. L., 2001).They added job satisfaction as the affective orientation employee has towards their work. (Ros Intan Safinas Munir, Ramlee Abdul Rahman , Ariff Md. Ab. Malik , & Hairunnisa ma'moar, 2012 ). They studied the Relationship between Transformational Leadership and Employees Job Satisfaction among the Academic Staff and suggested that transformational leadership plays important role in influencing job satisfaction. Job satisfaction is often determined by how well the outcome meets or exceeds expectations and it represents several related attitudes such as work itself, pay, promotion

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opportunities, supervision and coworkers which are most important characteristics of a job about which people have effective response. (Luthans, F, 1998). (Umit Alniacik, Esra Alniacik, Kultigin Ackin, Serhat Erat, 2012). This study examines the relationships between the components of career motivation, employees effective commitment & their job satisfaction. Employee job satisfaction is defined as a pleasurable emotional state resulting from the valuation of his/her work (Locke, E, 1976) This definition is very broad, as it includes characteristics relating to the job itself (wages, promotion) and work environment. Some studies consider employee job satisfaction as an overall variable, while others consider its different dimensions satisfaction with the work, supervisor, and pay, opportunities for promotion, workmates and customers and examine them separately. (Brown, S. and Peterson, R., 1993). (Schaufeli, W.B. and Salanova, M., 2010) argued that the more an employee is satisfied with the company, the more likely customers are to show loyal behaviors including a repeated visit showed that when an employee is satisfied with the job and the service environment, he or she is likely to perform better, and induce greater customer loyalty. Among determinants of job satisfaction, leadership is viewed as an important predictor and plays a central role. Leadership is a management function, which is mostly directed towards people and social interaction, as well as the process of influencing people so that they will achieve the goals of the organization. (Skansi, D., 2000) Approaches to Job Satisfaction: Various approaches have been developed about job satisfaction. These approaches discuss about job satisfaction and organizational factors affecting job satisfaction.

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Classical Approach: Classical approaches describe two theories in relation to job satisfaction: 1. Theories of Needs: This theory acts in accordance with the needs of the individual. (Brief, A. P., 1998). 2. Theories of Value: The leading theory among the theories of value (expectation) is the Cornell Model developed by (Smith, P. C., Kendall, L. M. and Hulin, C. L.). Modern Approach: 1. Social Information Processing Approach: One of the most prominent modern approaches that examine job satisfaction is the Social Information Processing Approach of (Salancik, G. R. and Pfeffer, J., 1978). This Approach examines job attitudes in comparison to the theories of needs and expectations. 2. Theory of Individual Differences: Another modern approach is the Theory of Individual Differences in Job Satisfaction by Motowidlo. According to this theory, job satisfaction is a perception created by the individual about the degree of the job environment to satisfy the individual. Based on this perception, the talented employee tries to determine the job satisfaction thanks to the relationship he/she has created between the things experienced in the workplace and the individual features (Brief, A. P., 1998). Factors of Job Satisfaction: There are various variables that effect job satisfaction in various ways. These variables affect job satisfaction by interacting with each other. These variables grouped under two categories as under; (Mehmet Altinoz, Demet Cakiroglu, Serdar Cop, 2012).

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1. Environmental Factors: Environmental factors that affect job satisfaction could be mentioned as follows: Wage Promotion Opportunity Control Communication Organizational Reputation and Operating Conditions Organizational Reputation and Operating Conditions

2. Individual Factors: Individual factors that create job satisfaction reveal the need to meet the requirements like autonomy and personal development of the individual. Motivational impact of the job characteristics is an important job satisfaction factor for the people who have high need for improvement. The talented employees who prefer the hard works concentrate more when they are given complex works and they get job satisfaction more than the results they have acquired. Job Satisfaction & Empowerment: (Lawson K. Savery, J. Alen Luks, 2001) . This paper explores that through empowerment of employees it is possible to: Reduce the amount of perceived stress Increase Productivity

Further this paper also explores that employee involvement is directly related to job satisfaction.

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According to study by (Lynn Holdsworth & Susan Cartwright, 2003) empowerment at the workplace is introduced to reduce the job related stress and to increase the job satisfaction. Low levels of empowerment are strongly related to mental distress and excess chronic diseases (Johnson, 1997). (Sprietzer, G.M.,Kizilos, M.A.,&Nason, S.W. , 1997). They examined each of the four dimensions of empower and their relationship to job satisfaction and the psychophysiological outcomes of job stress. Meaning self determination and competence were all associated with job satisfaction. The most powerful association was found with meaning, suggesting that to feel satisfied with work employees need to feel energized by, and put their hearts into, and their work. Job stress was negatively related to meaning as a sense to competence suggesting that employees, who feel they have influence within the organization and the necessary skills, may be buffered from experiencing job related stress. They considered employee job satisfaction to be positively related to the development of employee OCB. (Jose Varela Gonzalez and Teresa Garc a Garazo, 2006). Two theories have been presented in this regard. Theory of social exchange (Konovsky, M. and Pugh, D., 1994) Theory of the psychological contract (Robinson, S. and Morrison, E., 1995)

In both, the base of the relationship lies in the reciprocity rule: a satisfied employee reciprocates Organization Citizenship Behavior towards those who have benefited him/her (Bateman, T. and Organ, D., 1983).

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(Dana Yagil, 2006). The results show that the empowerment of service providers is related to customer satisfaction. Conceivably, empowerment affects such characteristics as service providers attitudes toward service, their sense of control and the repertoire of service options they are allowed to perform. He proved that employee satisfaction results in customer satisfaction. Empowerment acts as a buffer for such service providers motivation & job satisfaction. (Sut I Wong Humborstad & Chad Perry, 2011). Employees accept empowering management practices to demonstrate stronger job satisfaction and organizational commitment, and so help empowerment to lead to lower turnover intention.

Effect Of Employee Empowerment On Employee Job Satisfaction 29

CHAPTER NO: 3
METHODOLOGY
It is a key map which includes the procedures and techniques for gathering and analyzing the data. It is a way to conduct a research in a proper manner. 3.1 RESEARCH DESIGN: A research design is a systematic procedure in which we study the problem. The design of study tells us which type of research we are conducting. The nature of research we are working on is causal. If the purpose is to find out which variable might be causing a certain behavior, i.e. where there is a cause and effect relationship exist between variables, causal research is being conducted. Like in our study we want to know the effect of empowerment on job satisfaction so empowerment is a cause and we have to check its affect oh job satisfaction. 3.2 POPULATION OF THE STUDY: A population is a set of bodies concerning which statistical inferences are to be drawn, often based on a random sample taken from the population. The population of our study consists of Private Banking Sector of Pakistan. 3.3 SAMPLE OF STUDY: Samplssse is the part of population which is randomly selected for gathering information about the topic. The sample size of our sample size is 200.

Effect Of Employee Empowerment On Employee Job Satisfaction 30

3.4 TOOLS OF DATA COLLECTION: There are different methods of data collection are used all over the world that may be primary and secondary. We will use secondary data from different ways. This includes; Books Journals Articles Internet Survey

We have collected our data from private banks. We have studied different articles and journals to find out facts and figures. 3.5 DATA COLLECTION: Data collection is the process of collecting and measuring information of related variables, in an established systematic form that enables one to answer stated research questions, test hypotheses, and evaluate the results. We have collected out data through questionnaires we have conducted personal interviews and surveys for in depth study. 3.6 DATA ANALYSIS: Data analysis is statistical techniques to describe and evaluate the data. The data we have collected is passed through different tests, which includes; Descriptive Analysis Regression Analysis

Effect Of Employee Empowerment On Employee Job Satisfaction 31

In descriptive statistical analysis we check that how many times a particular answer is given by particular group of people or respondents. Liner regression analysis estimates the coefficients of a liner equation, involving one or more independent variables that best predict the value of the dependent variable. Regression analysis is done to check the effect of independent variable on dependent variable.

Effect Of Employee Empowerment On Employee Job Satisfaction 32

CHAPTER NO: 4
4.1 ANALYSIS OF DATA
DESCRIPTIVE STATISTICS: In descriptive statistical analysis we check that how many times a particular answer is given by particular group of people or respondents.
TABLE OF FREQUENCIES

Employee Empowerment Employee Job Satisfaction Gender Age Qualification Salary

N 200 200 200 200 200 200

Min: 1.43 1.25 1 1 6 1

Max: 3.00 3.88 3 6 7 6

Mean 1.9436 2.1606 1.32 3.34 4.23 2.82

Std. Dev: 0.34346 0.30654 0.476 0.822 0.800 1.089

Table No: 4.1 Frequency 138 62 6 10 109 64 8 3 1 3 28 87 80 0 1 Percentage 69 31 3 5 54.5 32 4 1.5 0.5 1.5 14 43.5 40 0 0.5

Gender Age

Qualifications

Male Female Below 20 year 20-25 year 25-30 year 30-35 year 35-40 year Above 40 year Metric Intermediate Graduation Post Graduation Ms/M. Phil PHD Others

Effect Of Employee Empowerment On Employee Job Satisfaction 33

Salary Table

Up to 20,000 21,000-40,000 41,000-60,000 61,000-80,000 81,000-100,000 100,000 & above DEMOGRAPHICS

14 79 50 50 1 6

7 39.5 25 25 0.5 3

No: 4.2

Figure: 4.1 Genders

Interpretation:
Above graph shows that majority of our respondents were male with frequency of 178 & percentage of 69, while female respondents are 31 % with the frequency of 62.

Figure: 4.2 Age

Effect Of Employee Empowerment On Employee Job Satisfaction 34

Interpretation:
In the above graph majority of respondents were in age group between 25-30 years old with the percentage of 54.5%. 32% respondents were between age group 30-34 year old, 5% respondents were between age group 20-25 year, 4% respondents were between age group 35-40 year old, 3% respondents were below 20 year old & 1.5% respondents were above 40 year old.

Figure: 4.3 Education level

Interpretation:
Above graph shows that mostly respondents were Post Graduate with percentage 87%, 80% were Ms/M. Phil, 28% were Graduate, 5% were Intermediate & 3% respondents were Metric.

Effect Of Employee Empowerment On Employee Job Satisfaction 35

Figure: 4.4 Salary Range

Interpretation:
Above graph shows that most of the respondents had salary range of 21,000-40,000 with 39.5%. 25% respondents had salary range of 41,000-60,000 & 61,000-80,000.

TABLE: 4.3 EMPLOYEE EMPOWERMENT Employee Strongly Empowerment Agree% Empowerment closely related 58 to self determination. Empowerment based on trust 33 of seniors. You have access to 19 information & resources. Lack of control is the reason for 13.5 empowerment. Due to empowerment 27 employee became Agree % 30.5 Neutral% Disagree % 11.5 0 Strongly Total Disagree% % 0 100

60

3.5

1.0

2.5

100

65.5

8.5

7.0

100

63.5

16

1.0

100

58.5

12.5

2.0

100

Effect Of Employee Empowerment On Employee Job Satisfaction 36

10

11

12

13

14

motivated. You have control on your job related work. You have authority to correct the problem within the organization. Empowerment provides a clear path for career advancement. You have the authority to make decision. You have involvement in decisions that affect your work. You have the responsibility to monitor the tasks. You make the decision about the implementation of policies. You have the opportunity for professional growth. Empowerment influence quality of work.

41

39

18

2.0

100

48

33

13.5

4.5

1.0

100

40.5

49.5

9.0

1.0

100

10.5

66

15.5

6.5

1.5

100

12

65

17.5

0.5

100

21

47

29.5

2.5

100

34.5

44

16

0.5

100

16.5

53.5

28.5

1.5

100

35

47

15

100

Graph:

Effect Of Employee Empowerment On Employee Job Satisfaction 37

Interpretation: 58% respondents strongly agree that empowerment is most closely related to self determination,30.5% are agree with this phenomenon while 11.5% are neutral, 0% disagree with this thought and 0 % also strongly disagree with this.33% respondents strongly agree that empowerment is based on trust of seniors while 60% agree, 3.5% are neutral and 1.0 disagree with this, 2.5% respondents are strongly disagree with it.19% respondents strongly agree and 66.5% agree that they have access to organizational information and other resources, 8.5% are neutral,10% are disagree and 0% are strongly disagree with this. 13.5% respondents strongly and 63.5% are agree that lack of control provide a room for empowerment within an organization. 16% are neutral, 6% disagree and 1.0% are strongly disagree with this. 27% strongly agree and 58.5% agree that due to empowerment employees became more motivated, 12.5% are neutral, 2.0% are disagree and 0% are strongly disagree with this. 41% respondents are strongly agree and 39% are

Effect Of Employee Empowerment On Employee Job Satisfaction 38

agree that they have control over their jobs, 18% are neutral, 2.0% are disagree and 0% are strongly disagree with this. 48% respondents are strongly agree and 33% are agree that they have authority to correct the problems, 13.5% are neutral,4.5% are disagree and 1.0% are strongly disagree with this.40% respondents are strongly agree and 49.5% are agree that empowerment provides a clear path for career advancement, 9% are neutral, 1% are disagree and 0% are strongly disagree with this.10.5% respondents are strongly agree and 66% are agree that they have the authority to make the necessary decisions for accomplishing the assigned tasks, 15.5% are neutral, 6.5% are disagree and 1.5% are strongly disagree with this. 12% respondents are strongly agree and 65% are agree that they have enough involvement in the decision that affect their work,17.5% are neutral,5% are disagree and 0.5% are strongly disagree with this.21%respondents are strongly agree and 47% are agree that they have given the responsibility to monitor the tasks, 29.5% are neutral, 2.5% are disagree and 0% are strongly disagree with this.34.5% respondents are strongly agree and 44% are agree that they can make decisions about implementation of new policies in the organization, 16% are neutral, 5% are disagree and 0.5% are strongly disagree with this.16.5% respondents are strongly agree and 53.5% are agree that they have the opportunity for professional growth, 28.5% are neutral, 1.5% are disagree and 0% are strongly disagree with this. 35% respondents are strongly agree and 47% are agree that with the empowerment they have to influence the quality of their work,15% are neutral,3% are disagree and 0% are strongly disagree with this. TABLE: 4.4 JOB SATISFACTION Employee Empowerment Decision-making is Strongly Agree% 4 Agree % 71.5 Neutral% 13 Disagree% 1.5 Strongly Disagree% 0 Total% 100

Effect Of Employee Empowerment On Employee Job Satisfaction 39

associated with job satisfaction. Information sharing results in job satisfaction. Power sharing results in job satisfaction. Employee involvement in decision making helps in job satisfaction. Freedom to use judgment helps in decision making. Empowerment contributes to job satisfaction. Communication to management helps in job satisfaction. Career development opportunity helps in job satisfaction.

7.5

76

14

0.5

100

10

35.5

39

14.5

100

22.5

47

30

0.5

100

20.5

67.5

2.5

1.5

100

46

45

0.5

0.5

100

90

1.5

0.5

100

13

83.5

3.5

100

Chart:

Effect Of Employee Empowerment On Employee Job Satisfaction 40

Interpretation: 4% respondents are strongly agree and 71.5% are agree that decision making is positively associated with job satisfaction, 13 % are neutral, 1.5% are disagree and 0% are strongly disagree with this. 7.5% respondents are strongly agree and 76% are agree that information sharing results in job satisfaction, 14% are neutral, 2% are disagree and 0.5% are strongly disagree with this.10% respondents are strongly agree and 35.5% are agree that power sharing results in job satisfaction, 39% are neutral, 1% are disagree and 14.5% are strongly disagree with this. 22.5% respondents are strongly agree 47% are agree with that employee involvements in decision making helps in job satisfaction, 30% are neutral, 0.5% are disagree and 0% are strongly disagree with this. 20.5% respondents are strongly agree 67.5% are agree with that freedom to use your own judgment helps in job satisfaction, 8% are neutral, 2.5% are disagree and 1.5% are strongly disagree. 8% respondents are strongly agree 46% are agree with that enhancing employee service capability through empowerment contributes to employee job satisfaction, 45% are neutral. 0.5% are disagree and 0.5% are strongly disagree with that. 4% respondents strongly agree and 90% are agree that communication to the upper and lower management helps in job satisfaction, 4% are neutral, 1.4% are disagree and 0.5% are strongly disagree with this. 13% respondents are strongly agree and 83.5% are agree with that career development opportunities help in job satisfaction, 3.5% are neutral, 0% are disagree and 0% are strongly disagree. Regression Analysis:

Effect Of Employee Empowerment On Employee Job Satisfaction 41

Liner regression analysis estimates the coefficients of a liner equation, involving one or more independent variables that best predict the value of the dependent variable. Regression analysis is done to check the effect of independent variable on dependent variable. Independent variable Employee Empowerment R R2 F Standardized coefficient Beta 0.196 0.220 0.048 10.062 0.002 T Sig

3.172

0.002

Interpretation: Linear regression analysis estimates the coefficients of a linear equation, involving one or more independent variables that best predict the value of the dependent variable. In the above table R is the Pearson Product Moment Correlation Coefficient. In this case the value of R is .220. R is the square root of R-Square and is the correlation between observed and predicted values of dependent variable. The value of beta tells us the variance/effect that employee empowerment has on job satisfaction which is 19.90 in this study. It means our independent variable has almost 20% effect on employee job satisfaction. In other words we can say that employees are 20% satisfied with their jobs if they are given empowerment. Our results show that Employee Empowerment has significant positive effect on employee job satisfaction.

Effect Of Employee Empowerment On Employee Job Satisfaction 42

CHAPTER NO 5
5.1 FINDINGS:
From this study we find that 69% of our respondents were male & 31% were females. Our 54.5% respondents are between age group 25-30 years 32% were from age group 30-35. Most of our respondents having qualification of PostGraduation with the percentage of 43.5% & Ms/M.Phil with the percentage of 40. Majority of respondents who answered the questionnaire having salary range of 21,000-40,000 with the percentage of 39.5%. According to data analysis we found that 58% respondents said empowerment is most closely related to self-determination. 63.5% people agree that in most of the organization empowerment is introduced to eliminate lack of control.

Effect Of Employee Empowerment On Employee Job Satisfaction 43

60% respondents agree that empowerment is based on trust of seniors & leadership quality. 58.5% people agree that employee empowerment results in motivation of employees to work wholeheartedly.

65% respondents agree that 65% employees are involved in decision-making due to empowerment. 66% people agree that they have given the authority to make necessary decisions.

71.5% people agree that decision-making is positively associated with jobsatisfaction. 67.5% respondents agree that freedom to use own judgment helps in job satisfaction. 83.5% people agree that career development opportunities help in job-satisfaction.

In data analysis we find that employee empowerment shows a significant positive effect on the job-satisfaction of employees.

5.2 CONCLUSION
It can be seen from the results that if employees are given empowerment then they are much satisfied with their jobs. Further from the results it is proved that empowerment has almost 20% direct positive effect on employee job satisfaction. Empowerment together with its various dimensions like autonomy, decision-making, independence, selfdetermination and delegation contributes positively towards employee job satisfaction.

5.3 RECOMMENDATIONS

Effect Of Employee Empowerment On Employee Job Satisfaction 44

5.4 REFERENCES
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Effect Of Employee Empowerment On Employee Job Satisfaction 54

CHAPTER NO: 6
APPENDIX
Respected Sir/Madam, This research is being conducted to investigate the effect of employees empowerment on employees job satisfaction. Your response will be kept confidential and only be used for academic purpose. Your precious time in filling the questionnaire is highly appreciated and acknowledged.

Effect Of Employee Empowerment On Employee Job Satisfaction 55

You are requested to check the appropriate box Strongly Agree from the given below as: Agree 1 2 Strongly Agree=1,Agree=2,Neutral=3,

Neutral Disagree Strongly Disagree 3 4 5

Disagree=4,Strongly Disagree=5
1 2 3 4 5 6 7 8 9 10 11 12 13 Employees Empowerment Empowerment is most closely related to selfdetermination. Empowerment is based on trust of seniors and leadership quality. You have access to organizational information and other resources. Lack of control within the organization provides a room for empowerment. Due to empowerment employees became more motivated. You have a control on your job related works You have the authority to correct the problem within the organization. Empowerment provides a clear path for career advancement. You have the authority to make the necessary decisions for accomplishing the assigned tasks. You have enough involvement in decision that affects your work. You have given the responsibility to monitor the tasks. You make decisions about the implementation of new policies in the organization. You have the opportunity for professional growth. Job satisfaction With the empowerment you have to influence the quality of your work Decision-making is positively associated with job satisfaction. Information sharing results in job satisfaction. Power sharing results in job satisfaction. Employees involvement in decision making helps in job satisfaction. Freedom to use your own judgment helps in job satisfaction. Enhancing employee service capability through empowerment contributes to employee job satisfaction. Communication to upper and lower management help in job satisfaction

14 15 16 17 18 19 20

21

Effect Of Employee Empowerment On Employee Job Satisfaction 56

22

Career development opportunities help in job satisfaction.