Employee Involvement
Employee involvement refers to the active participation of employees in the decision making processes which ultimately leads to the success of the organization (Hoell, 2004). Employee involvement is thus said to be a “participative process” in which effective managers are able to draw employees to their work places through enhanced communicative techniques, suggestions and incentives to work (Cotton, 1993). Management practices which enable employees to determine and decide how their work is performed are believed to be optimal and effective, since they have a crucial and positive influence on employee involvement (Ariss, 2002). Employee involvement also enables decision making at the lowest levels of the organization thereby improving the quality and productivity to employees (Cotton, 1993). Effective managers are those who have the capability and power to motivate employee involvement in order to encourage commitment to the organization leading to ultimate profitability and success (Cotton, 1993). Literature on employee involvement suggests that employee involvement in decision making is directly proportional to job satisfaction and high performance of employees and workers (Crandall and Parnell, 1994). Numerous studies have also indicated that when subordinate employees are allowed to participate actively in taking decisions, they reflect a higher degree of content with the company management (Cohen and Bailey, 1997).
Employee Empowerment
Employee empowerment is defined as the “process of enhancing feelings of self-efficacy” among employees and members of a company or organization by recognizing and removing those factors which could encourage a sense of helplessness among them and have a negative influence on their productivity and consequently the profitability and success of the company (Conger and Kanungo, 1988). Studies indicate that a workplace in which workers are empowered will not only help in retaining employees but will also draw new capable ones to it, since empowered employees are more likely to be happy and content with their jobs which makes them more likely to remain in the same company (Blanchard, O'Connor & Ballard, 2003). Top level managers have affirmed that employee empowerment needs to be taken care of through appropriate training and enhanced communication (Maxwell, 2005). Training ensures that company employees get the crucial knowledge related to the organization’s functions and its objectives, which is essential for employees to be aware of their decision making process and also positively impacts the individual level of commitment of employees towards their company (Maxwell, 2005). Maxwell (2005) also confirms that the increase in the moral of employees is positively and directly associated with the productivity and success of the company since employees begin to feel important members and motivated to deliver their best in the best interests of the organization. Researchers note that employee empowerment has several benefits, the most significant one being the reduction in overhead costs due to the reduced managerial regulation (Maxwell, 2005). Argyris (1998) asserts that effective managers enable employee empowerment through their excellent management techniques, thereby inviting external as well as internal commitment of employees to their organization.
