A Study On Employee Empowerment at Valgen Business Solutions Pvt. LTD

ZENITH International Journal of Multidisciplinary Research _______________ISSN 2231-5780
Vol.3 (11), November (2013)

Online available at zenithresearch.org.in
A STUDY ON EMPLOYEE EMPOWERMENT

AT VALGEN BUSINESS SOLUTIONS PVT. LTD.
A.K.SUBRAMANI*; DR. S.PANNEERSELVAM**;
MR.V.KARTHIKEYAN***
*RESEARCH SCHOLAR, MANONMANIAM SUNDARANAR UNIVERSITY, TIRUNELVELI

ASSISTANT PROFESSOR, VEL TECH INSTITUTE OF MANAGEMENT,
VEL TECH UNIVERSITY, AVADI,
CHENNAI , TAMIL NADU, INDIA
**RESEARCH SUPERVISOR, MANONMANIAM SUNDARANAR UNIVERSITY, TIRUNELVELI.

PROFESSOR, DEPARTMENT OF MANAGEMENT STUDIES,
ST.PETERS ENGINEERING COLLEGE, AVADI,
CHENNAI, TAMIL NADU, INDIA
***SECOND YEAR MBA, VEL TECH INSTITUTE OF MANAGEMENT(VTIM),

VEL TECH UNIVERSITY, AVADI,
CHENNAI,TAMIL NADU, INDIA
ABSTRACT
Empowerment of employees is the responsibility of top-level management. If empowerment
program is in the organization there we can see employees working with higher satisfaction and
to the fullest extent. The main objective of the study is to identify the level of employee
empowerment in the organization. The type of research is descriptive research and census survey
had been done. The researcher has applied statistical tools such as Chi-square, Rank summation,
Correlation analysis and Weighted average for the data analysis. The survey has highlighted both
positive and negative points about empowerment as a major development process. Employees
through the study opined to improve employee innovation and creativity, organization culture
and climate plays vital role so it as to be improved.
KEYWORDS: Employee empowerment, Empowerment, Valgen Business solutions, Role of

clarity.
______________________________________________________________________________
INTRODUCTION:
There's a basic philosophy here that by empowering...workers you'll make their jobs far more
interesting, and they'll be able to work at a higher level than they would have without all that
information just a few clicks away.
- Bill Gates, Co-Founder & Chairman, Microsoft Corporation
The success of any organization depends on the availability of committed human resources.
Employees with intrinsic motivation perform in a better way than with extrinsic motivation. Now
a days due to the change in the philosophy of employers views towards their employees, they
were treated as important variables in the success of the organization. Here we have to remember
227
the famous saying, Satisfied employee is a production employee. Every organization is trying
to the best of its efforts to keep the level of satisfaction of employees at a higher degree. Besides
providing satisfaction an advanced concept in the current day human resource management
discipline to increase the commitment, dedication, morale, belongingness, positive attitude
towards organization, creativity and innovative in the task performance and acceptance to any
kind of change is Empowerment.
Empowerment of employees is the responsibility of top-level management. If empowerment

program is in the organization there we can see employees working with higher satisfaction and
to the fullest extent. Empowerment can be achieved by involving employees in decision making,
accepting and implementing the creative and innovative ideas, free flow of upward and
downward communication, giving freedom in decision making, periodic appraisals by superiors
and encouraging the career development programs. In order to get the benefits from the workers
side every organization is giving priority for the concept of Empowerment.
According to Richard Carver, Empowerment is the process of enabling or authorizing an

individual to think, behave, take action and control work and decision making in autonomous
ways. It is the state of feeling self-empowered to take control of ones own destiny.
BRIEF PROFILE OF VALGEN:

M/s. Valgen is a group of company broadly divided into Valgen Business Solutions Pvt. Ltd.
(VBS) and Valgen Infosystems Pvt. Ltd. (VIPL) Valgen is founded by experts from industry &
academia in USA & India specializes in delivering business consulting and IT solutions to
manufacturing and automobile companies for over a decade. The expertise has been built up over
a period exceeding two decades by Valgen's leadership team who has rich experience in diverse
functional and industry verticals with exposure covering Operations, Information Technology,
Enterprise Resource Planning (ERP), SAP, Business Process Re-engineering (BPR) and Finance.
OBJECTIVES OF THE RESEARCH:

The main objectives of the research are:
To identify the level of employee empowerment in the organization
To find the role of creativity and innovation in employee empowerment
To assess the role of organizational climate and culture in employee
empowerment
SCOPE OF THE STUDY:

This study restricted only to following parameters of empowerment only.
Level of satisfaction on empowerment
Role of creativity
Role of innovation
Role of culture
Role of culture and climate
228
METHODOLOGY OF THE RESEARCH:

The type of research is descriptive research, since it describes the employees opinion
towards the employee empowerment practices followed by the company. The researcher
collected both primary and secondary data. The primary data is collected through structured
questionnaire among all the executive employees (i.e. 60 executives) working in Valgen
Business Solutions, Hence the survey followed census method of data collection. The researcher
used Chi square test, Correlation analysis, Rank summation, weighted average for data
analysis.
DATA ANALYSIS:
1. Comparing the variance of encouragement provided by various departments.
AIM: To find out the relationship between the various Department and superior encouragement.
HYPOTHESIS
Null Hypothesis Ho: There is no significant relationship between Department and
encouragement.
Alternative Hypothesis HA: There is significant relationship between satisfaction level and
Gender.
TABLE OF OBSERVED FREQUENCY O
SUPERIOR ENCOURAGEMENT
DEPARTMENT Total
Always Often Sometimes Rare Never
HR 0 3 0 0 0 3
Development 6 12 3 0 0 21
Financial 0 3 3 0 0 6
Marketing 0 0 3 3 0 6
Implementation 6 12 6 0 0 24
TOTAL 12 30 15 3 0 60
TABLE OF EXPECTED FREQUENCY E

Expected Frequency = (Row Total x Column Total) / Grand Total
SUPERIOR ENCOURAGEMENT
DEPARTMENT TOTAL
Always Often Sometimes Rare Never
HR 2.6 1.5 0.75 0.15 0 3
Development 4.2 10.5 5.25 1.05 0 21
Financial 1.2 3 1.5 0.3 0 6
Marketing 1.2 30 15 3 0 6
Implementation 4.8 12 6 1.2 0 24
TOTAL 12 30 15 3 0 60
229
ESTIMATION OF CHI- SQUARE
OBSERVED VALUE EXPECTED VALUE O-E (O-E)2 (O-E)2/E

(O) (E)
0 2.6 -2.6 6.76 2.6
6 4.2 1.8 3.24 0.7714
0 1.2 -1.2 1.44 1.2
0 1.2 -1.2 1.44 1.2
6 4.8 1.5 1.44 0.3
3 1.5 1.5 2.25 1.5
12 10.5 0 2.25 0.2142
3 3 -30 0 0
0 30 0 900 30
12 12 -0.75 0 0
0 0.75 -2.25 0.5625 0.75
3 5.25 1.5 5.0625 0.9642
3 1.5 -1.2 2.25 1.5
3 15 -12 1.44 0.096
6 6 0 0 0
0 0.15 -0.15 0.0225 0.15
0 1.05 -1.05 1.1025 1.05
0 0.3 -0.3 0.09 0.3
3 3 0 0 0
0 1.2 -1.2 1.44 1.2
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
TOTAL 42. 7958
Calculated value = 5.904

Degree Of Freedom = (r1) (c -1) = (5- 1) (5-1) = 16
Tabulated Chi-Square value at 5% Significant Level = 26.30
INFERENCE:
Since the calculated value is less than the Tabulated Value therefore Null Hypothesis is
accepted. There is no significant relationship between department and superior encouragement.
2. Comparing the variance of the Job satisfaction and Age of the employees.
AIM: To find out the relationship between the job satisfaction and age.
230
HYPOTHESIS
Null Hypothesis Ho: There is no significant relationship between job satisfaction and age.
Alternative Hypothesis HA: There is significant relationship between job satisfaction and age.
TABLE OF OBSERVED FREQUENCY O
AGE JOB SATISFACTION Total

Highly Satisfied Neutral Dissatisfied Highly
satisfied dissatisfied
20-30 3 3 9 3 0 18
31-40 6 6 12 0 0 24
41-50 3 3 16 0 0 12
Above 51 3 0 3 0 0 6
Total 15 12 30 3 0 60
TABLE OF EXPECTED FREQUENCY E
Expected Frequency = (Row Total x Column Total) / Grand Total
JOB SATISFACTION
AGE Highly Highly Total
Satisfied Neutral Dissatisfied
satisfied dissatisfied
20-30 4.5 3.6 9 0.9 0 18
31-40 6 4.8 12 1.2 0 24
41-50 3 2.4 6 0.6 0 12
Above 51 1.5 1.2 3 0.3 0 6
Total 15 12 30 3 0 60
231
ESTIMATION OF CHI- SQUARE
OBSERVED VALUE EXPECTED VALUE O-E (O-E)2 (O-E)2/ E

(O) (E)
3 4.5 -1.5 2.25 0.5
6 6 0 0 0
3 3 0 0 0
3 1.5 1.5 2.25 1.5
3 3.6 -0.6 0.36 0.1
6 4.8 1.2 1.44 0.3
3 2.4 0.6 2.25 0.75
0 0.2 -1.2 0.36 0.3
9 9 0 0 0
12 12 0 0 0
6 6 0 0 0
3 3 0 0 0
3 0.9 2.1 4.41 4.9
0 1.2 -1.2 0.36 0.3
0 0.6 -0.6 2.25 3.75
0 0.3 -0.3 0.09 0.3
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
TOTAL 12.7
Calculated value = 5.904

Degree Of Freedom = (r1) (c -1) = (4- 1) (5-1) = 12
Tabulated Chi-Square value at 5% Significant Level = 21.03
INFERENCE
Since the calculated value is less than the Tabulated Value therefore Null Hypothesis is
accepted. There is no significant relationship between job satisfaction level and age.
RANK SUMMATION
AIM
To find out which one possess 1st to 5th rank among the empowerment factors
CALCULATION
Each cell value * respective rank
TABLE REPRESENTS PARTICULARS VALUE

232
AGE Rank Total

1 2 3 4 5
Commitment 42 12 2 2 2 60
Dedication 10 27 9 4 10 60
Involvement 2 2 32 22 2 60
Morale 5 6 9 28 12 60
Positive attitude 1 13 8 4 34 60
AGE Rank Total

1 2 3 4 5
Commitment 42 24 6 8 10 84
Dedication 10 54 27 16 50 157
Involvement 2 4 64 88 10 170
Morale 5 12 27 112 60 216
Positive attitude 1 26 24 16 170 237
PARTICULARS RANK
COMMITMENT 1
DEDICATION 2
INVOLVEMENT 3
MORALE 4
POSITIVE ATTITUDE 5
INFERRENCE
From the employees point of view commitment posses 1st rank, dedication possess 2nd rank,
involvement posses 3rd rank, morale posses 4th rank, positive attitude posses 5th rank.
RANK SUMMATION
AIM
To find out which one possess 1st to 5th rank for the success of an employee
CALCULATION
TABLE REPRESENTS PARTICULARS VALUE
233
AGE Rank Total

1 2 3 4 5
Organization 9 12 16 12 11 60
Team leader 17 7 4 8 24 60
Project manager 15 16 0 24 5 60
Project 16 15 5 4 20 60
Commitment 3 10 35 12 0 60
Total 60 60 60 60 60 300
AGE Rank Total

1 2 3 4 5
Organization 9 24 48 48 55 184
Team leader 17 14 12 32 120 195
Project manager 15 32 0 96 25 168
Project 16 30 15 16 100 177
Commitment 3 20 105 48 0 176
PROJECT MANAGER 1
COMMITMENT 2
PROJECT 3
ORGANIZATION 4
TEAM LEADER 5
INFERRENCE
From the employees point of view project manager posses 1st rank, commitment possess 2nd
rank, project posses 3rd rank, organization posses 4th rank, team leader posses 5th rank.
CORRELATION ANALYSIS
Correlation analysis between empowerment to take decision and superior encouragement in
solving work related problems.
AIM
To find out the existence of correlation between the employee empowerment and superior
encouragement to solve the work related problems.
CALCULATION
The coefficient of the correlation is given by r = dxdy/dx2*dy2
where dx = x-x dy = y-y x = x/n y = y/n
TABLE OF PARTICULARS
234
Particulars Empowerment(x) Encouragement(y)

Always 9 12
Often 6 30
Sometimes 21 15
Rarely 24 3
Never 0 0
TABLE FOR EVALUATING THE PARTICULARS
Particulars dx dx2 dy dy2 dxdy

Always 9 81 12 144 108
Often 6 36 30 900 180
Sometimes 21 441 15 225 315
Rarely 24 576 3 9 72
Never 0 0 0 0 0
Total 60 1134 60 1278 675
CALCULATION
r=dxdy/(dx2*dy2) =675/1134*1278 = 0.561
INFERENCE
It is inferred that positive correlation exists between the employee empowerment and the
encouragement from superiors to solve the problem.
WEIGHTED AVERAGE
Weighted average among organizational culture, organizational climate, employee creativity and
innovation among empowerment factors.
AIM
To justify which criteria weighted more among employee empowerment factors like
organizational culture, organizational climate, employee creativity, and employee innovation.
CALCULATION
W = Weight W1, W2, W3..Wn Wn = highest weight
Each cell is multiplied by their respective weight
R1 Average = R1/ (W) R2 Average = R3/ (W) Rn Average = Rn/ (W)
And largest average is considered as more weighted than other factors
TABLE TO KNOW THE PARTICULARS OF EACH FACTOR
235
EMPOWERMENT PARTICULARS Total

FACTORS Strongly Agree Neutral Disagree Strongly
agree disagree
Role of Culture 30 18 12 0 0 60
Role of climate 15 30 3 12 0 60
Role of creativity 36 18 3 3 0 60
Role of innovation 39 18 0 3 0 60
Strongly agree = W5 Agree = W4 Neutral = W3 Disagree = W2 Strongly Disagree = W1

According to the weights weighted in the particulars
TABLE TO WEIGHT THE PARTICULARS

PARTICULARS
EMPOWERMENT W5 W4 W3 W2 w1
FACTORS Strongly Agree Neutral Disagree Strongly Total
agree disagree
Role of Culture 30 18 12 0 0 60
Role of climate 15 30 3 12 0 60
TABLE TO FIND SUMMATION OF EACH FACTOR
Particulars
Particulars W5 W4 W3 W2 W1 Total
Strongly agree Agree Neutral Disagree Strongly disagree
Role of Culture 150 72 36 0 0 258
Role of climate 75 120 9 24 0 228
(W) = 15
TOFIND WHICH FACTOR ROLE IS WEIGHTED MORE
EMPOWERMNET FACTORS (R) (W) (R)/ (W) AVERAGE

Role of Culture 258 15 17.2 3
Role of climate 228 15 15.2 4
Role of creativity 267 15 17.8 2
Role of innovation 273 15 18.2 1
INFERENCE
Role of innovation is important (18.2) among the factors of empowerment. It is found from the
weighted average method. This is also to be note that the difference between each factor is less.
236
OUTCOME OF THE STUDY:

1. This study reveals that there is no significant relationship between gender and satisfaction
level and also there is no significant relationship between department and superior
encouragement through Chi-square analysis.
2. The Rank Summation analysis of the study states that, from the employees point of view
commitment posses 1st rank, dedication possess 2nd rank, involvement posses 3rd rank,
morale posses 4th rank, positive attitude posses 5th rank. Another rank summation analysis
shows from the employees point of view project manager posses 1st rank, commitment
possess 2nd rank, project posses 3rd rank, organization posses 4th rank, team leader posses
5th rank.
3. The Correlation analysis of the study proves that positive correlation exists between the
employee empowerment and the encouragement from superiors to solve the problem in
Valgen Business Solutions Pvt. Ltd.
4. Weighted average method analysis of the study found that among the role of the culture,
climate, innovation, creativity role of innovation is important.
DISCUSSIONS :
The researcher through their research findings, identified few problems in the employee
empowerment practices followed in Valgen Business Solutions Pvt. Ltd and given following
recommendations to the company.
1. Organization may encourage the employees to initiate themselves to solve the problem.
2. All the employees may be encouraged to solve work related issues after giving proper
training.
3. Researcher suggested improving the competency and interest to empower the employees.
4. To get better result organization may recognize employees creativity and innovation.
5. Researcher suggested that to improve empowerment among employees organization
culture and climate may improve.
6. Researcher recommended to implement management practices such a way it may not
affect employee empowerment.
7. Designing jobs in such a way that they encompass some aspects like skill variety,
autonomy, feedback etc. This will make the job more interesting for the job holder.
8. Helping employees to achieve mastery over the job by providing proper training,
coaching and counseling.
9. Allowing more control by giving employees discretion in performing the job and making
them accountable for results.
CONCLUSION:
Every organization needs to have empowered people to perform the activities that have to be
done. There exists a favorable opinion in the field of study with regard to the existence of
empowerment program is concerned. The survey has highlighted both positive and negative
points about empowerment as a major development process. Employees in the field of study are
opinioned to improve employee innovation and creativity, organization culture and climate plays
vital role so it as to be improved. The satisfaction level of employees is fair, and they are
expecting recognition for their performance. Employees best suggestions have to be rewarded
and also processed in time. Their participation in decision making process is also low and they
237
are not satisfied with the decisions taken in their work related issues. Their superiors are
encouraging and motivating them to solve their problems related to work. Problems faced by the
employees in the work place are considered as an opportunity to learn. The researcher
throughout the method of observation has come to the conclusion that level of empowerment of
the respondents in the field of study is high through the factors like creativity and innovation,
organization culture and climate.
REFERENCES:
1. C.B.Mamoria, Personnel Management, Himalaya Publishing House, Bombay (1988).
2. Newyork Cook, Hunsaker, Coffey Irwin, Organizational Behavior, McGraw-Hill; (1997)
3. P. Subba Rao, V.S.P.Rao, Personnel/Human Resource Management, Konark Publishers
Pvt Ltd; New Delhi,(1993)
4. Stephen P. Robbins, Organizational Behavior, Prentice Hall of India Pvt Ltd.; New Delhi,
(1996)
5. K.K.AhujaKalyani, Managerial Excellence, Publishers, New Delhi(1999).
6. G.Chandran Pillai, The Hindu Speaks On Management, ,Kasturi & Sons Ltd.,
Chennai.(1996) .
238

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ZENITH International Journal of Multidisciplinary Research _______________ISSN 2231-5780

Vol.3 (11), November (2013)

A STUDY ON EMPLOYEE EMPOWERMENT

*RESEARCH SCHOLAR, MANONMANIAM SUNDARANAR UNIVERSITY, TIRUNELVELI

**RESEARCH SUPERVISOR, MANONMANIAM SUNDARANAR UNIVERSITY, TIRUNELVELI.

***SECOND YEAR MBA, VEL TECH INSTITUTE OF MANAGEMENT(VTIM),

KEYWORDS: Employee empowerment, Empowerment, Valgen Business solutions, Role of

Empowerment of employees is the responsibility of top-level management. If empowerment

According to Richard Carver, Empowerment is the process of enabling or authorizing an

BRIEF PROFILE OF VALGEN:

OBJECTIVES OF THE RESEARCH:

SCOPE OF THE STUDY:

METHODOLOGY OF THE RESEARCH:

1. Comparing the variance of encouragement provided by various departments.

TABLE OF OBSERVED FREQUENCY O

TABLE OF EXPECTED FREQUENCY E

ESTIMATION OF CHI- SQUARE

OBSERVED VALUE EXPECTED VALUE O-E (O-E)2 (O-E)2/E

Calculated value = 5.904

TABLE OF OBSERVED FREQUENCY O

AGE JOB SATISFACTION Total

TABLE OF EXPECTED FREQUENCY E

Expected Frequency = (Row Total x Column Total) / Grand Total

ESTIMATION OF CHI- SQUARE

OBSERVED VALUE EXPECTED VALUE O-E (O-E)2 (O-E)2/ E

Calculated value = 5.904

TABLE REPRESENTS PARTICULARS VALUE

AGE Rank Total

Each cell value * respective rank

AGE Rank Total

TABLE REPRESENTS PARTICULARS VALUE

AGE Rank Total

Each cell value * respective rank

AGE Rank Total

Particulars Empowerment(x) Encouragement(y)

TABLE FOR EVALUATING THE PARTICULARS

Particulars dx dx2 dy dy2 dxdy

r=dxdy/(dx2*dy2) =675/1134*1278 = 0.561

TABLE TO KNOW THE PARTICULARS OF EACH FACTOR

EMPOWERMENT PARTICULARS Total

Strongly agree = W5 Agree = W4 Neutral = W3 Disagree = W2 Strongly Disagree = W1

TABLE TO WEIGHT THE PARTICULARS

TABLE TO FIND SUMMATION OF EACH FACTOR

TOFIND WHICH FACTOR ROLE IS WEIGHTED MORE

EMPOWERMNET FACTORS (R) (W) (R)/ (W) AVERAGE

OUTCOME OF THE STUDY:

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r=dxdy/(dx2dy2) =675/11341278 = 0.561