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ABSTRACT
This study examines the relationship between employee empowerment and corporate performances (A survey of Multi-national Firms in Port Harcourt). The purpose of this research work is to assess employees empowerment dimensions, such as responsibility, compensation, training, accountability and communication on corporate performance. The research adopted descriptive survey method as well as the use of questionnaires to enable the collection of data. The source of data includes; primary and secondary data. We retrieved 232 questionnaires that were distributed and textbooks, internet, magazines, journals, etc were used as secondary data. The Taro Yemen’s formula was used in determining size of 232 and the level of significance given a 5% with population of 550. The frequency table was used in testing the formulated hypothesis. Based on chi square co-efficient on tabulated value, the findings/analysis of the data reveals that there is a relationship between employee empowerment and corporate performance. Conclusively, the study reveals that it is a kind of synergistic partnership where each depends on the other for success. Recommendation was made that, efforts should be made to acknowledge and reward employees for effective corporate performance, and that employee empowerment as a tool for organization growth should be effectively managed to encourage corporate performance.
TABLE OF CONTENTS
TITLE PAGE ……………………………………………………………………………………………………i
ABSTRACT ii
DECLARATION iii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENTS vi
TABLE OF CONTENTS viii
LIST OF TABLES x
LIST OF FIGURES xi
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 5
1.3 Objective of the Study 5
1.4 Research Questions 6
1.5 Research Hypothesis 7
1.6 Significance of the Study 7
1.7 Scope/Delimitation of the Study 8
1.8 Limitation of the Study 10
CHAPTER 2 11
LITERATURE REVIEW 11
2.1 Definition of Employee Empowerment 11
2.2 6 Tips for Empowering Employees 13
2.3 Concept of Employee Empowerment 16
2.3.1 Dimension of Employee Empowerment 18
2.3.2 Elements of Employee Empowerment 19
2.4 The Benefit of Empowering Employees 21
2.5 Definition of Corporate Performance 23
2.6 Concept of Corporate Performance 24
2.6.1 Measures of Corporate Performance 26
2.7 Corporate Financial Performance 27
2.8 Employee Empowerment and Corporate Performance 28
2.9 Multi-National Firms in Nigeria 31
CHAPTER 3 35
RESEARCH METHODOLOGY 35
3.1 Research Design 35
3.2 Population of the Study 35
3.3 Sample Size and Sampling Techniques 36
3.4 Sources of Data 38
3.5 Research Instrument 38
3.6 Statistical Techniques for Analysis 39
CHAPTER 4 41
DATA PRESENTATION AND ANALYSIS 41
4.1 Data Presentation and Analysis 41
4.2 Testing Hypothesis 48
CHAPTER 5 51
DISCUSSION OF FINDINGS 51
5.1 Findings and Discussions 51
CHAPTER 6 55
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 55
6.1 Summary 55
6.2 Conclusions 56
6.3 Recommendations 57
BIBLIOGRAPHY 58
APPENDIX I 61
APPENDIX II 62
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Employee empowerment has engaged the attention of both academics and practitioners following the change in employment relationship in the last decade. The dominant practices in most organizations are downsizing, externalization of work, flattening of organizational levels which have been attributed to decline in workforce loyalty, commitment, satisfaction and overall performance. These trends in employment relationship have necessitated a closer look at the human resources of an organization, resulting in consensus amongst scholars that organization growth and competitive advantage largely depends on human resources (Pfeffer, 1994; Wright and McMahan, 2011). In 1990s, more attention to employee needs was given a priority and policies such as participative decision making, autonomous work groups, training and development were the central theme in most organizations giving rise to the concept of employee employment.
The concept empowerment surfaced in 1980s (Yong and Choi, 2009) and has received varying degree of attention from diverse discipline within business management especially in human resource management. Empowerment has been defined as a process of enhancing feeling of self efficacy among participants (Conger and Kanungo, 1988). Bowen and Lawler (1992) used the term service delivery to capture the concept of employee empowerment.
Employee empowerment includes; despite differences in definitions, there is general agreement among scholars of two distinct theoretical perspectives dominates the study of employee empowerment: situational and psychological perspective (Conger and Kanungo, 1988; Bowen and Lawler, 1992; 1995; Thomas and Kelthouse, 1990). The situational approach also known as relational (Conger and Karungo, 1988; Ongori, 2009) or management practice approach (Fermandoz and Moldogaziev, 2011) describes how those in power share power and authority with those in low position (Conger and Kanungo, 1988; Bowen and Lawler, 1992; 1995). Bowen and Lawler (1992; 1995) contend that the managerial perspective has its origin in McGregor Theory X and Y with focus being management practices and behaviours aimed at sharing power, information and rewards with employees to improve results. Critics of the situational approach contend that managers contend with loss of control and fail to address the cognitive state of employees (Yong and Choi, 2009) and that it does not address the nature of empowerment as experienced by employees.
The psychological perspective is motivational construct and defined as internal cognitive state characterized by increased motivation and enhanced feelings of self-efficacy (Thomas and Velthouse, 1990). This view agree with Conger and Kanungo (1988) who suggested that the psychological approach takes into account several factors that lead to increased intrinsic motivation and proposes four cognition including: Thomas and Vethouse (1990) extended Conger and Kanung (1988) model and identified for cognitive components: impact, competence, meaningfulness and choice. Apreitzer (1995) using Thomas and Velthouse (1990) and Bowen and Lawler (1992) proposed dimensions of locus of control, self-esteem, access to information and rewards. Peter et al (2002) proposed seven dimensions: power, decision making, information, autonomy, initiative, creativity, knowledge, skills and responsibilities, Yang and Choi (2009) drawing from Peter et al (2002) identified four dimension; decision making, autonomy, information and creativity.
Despite variety of conceptualization, there is consensus that employee empowerment is multidimensional concept and drawing from the work of Thomas and Vethouse, 1990; Spreitzer, 1995; Peter et al, 2002 we propose the dimensions of training, decision making, autonomy and information sharing. The choice of measures was based on the reliability and validity of scales used in different studies. Second, we propose that empowerment practices are likely to offer an array of benefits including job satisfaction (Spreitzer et al, 1997), team performance (Yang and Choi, 2009; Chen et al, 2007). However, we also acknowledge that there are negative effects of employee empowerment. Further it can be argued that the application of various employee empowerment practices is dependent on contextual factors.
1.2 Statement of the Problem
One of the biggest challenges in the multi-national firms in Nigeria are lack of the following:
- Foster open communication,
- Reward of self-improvement,
- Clearly define roles,
- Require accountability,
- Appreciate their effort,
- Low employees moral, loss of machine/man hours, delayed project delivery date and lost of organizational reputation which culminates in reducing organizational performance.
1.3 Objective of the Study
- To ascertain the relationship between employee empowerment and corporate performance.
- To ascertain the relation between responsibility and corporate performance.
- To ascertain the relationship between compensation and corporate performance.
- To ascertain the relationship between training and corporate performance.
- To ascertain the relationship between communication corporate performance.
- To ascertain the relationship between accountability and corporate performance.
1.4 Research Questions
The following questions shall be use in the course of this research study.
- To what extent is employee empowerment associated performance.
- To what extent is responsibility associated with corporate performance.
- To what extent is training associated with corporate
- To what extent is compensation associated with corporate performance.
- To what extent is communication associated with corporate performance.
- To what extent is accountability associated with corporate performance.
1.5 Research Hypothesis
The following null hypothesis would be tested in the course of this study.
HO: There is no significant relationship between responsibility, empowerment and corporate performance.
HA: There is a significant relationship between responsibility, empowerment and corporate performance.
1.6 Significance of the Study
This study is focused on gaining a detail insight in employee empowerment and corporate performance. This study is likely to be useful by managers of multi-national firm (Exxon mobil corporation and Esso Exploration and Production Nigeria Limited (EEPNL), Mobil Producing Nigeria unlimited (MPN)) and professional managers who are constantly looking for measures that can be used in empowering employees for effective corporate performance. Finally, this research study is expected to stimulate research interest among academics scholars and students in other aspect of employees’ empowerment and corporate performance.
This research project will be beneficial to people in the society who have quest for more knowledge, it will serve as a framework for scholars and students. This study also provides a yardstick for multi-national firms (Mobil Producing Nigeria unlimited (MPN), Esso Exploration and Production Nigeria Limited and Exxon corporation (EEPNL)), and professional managers who are constantly looking for measures that can be used in empowering employees for effective corporate performance. Finally, this research study is expected to stimulate research interest among academics scholars and students in other aspect of employee’s empowerment and corporate performance.
1.7 Scope/Delimitation of the Study
The content scope of the study is limited to the following heading:
Content Scope: The content scope of this study involves employee’s empowerment and corporate performance. Basically this forms of two vulnerable namely employee empowerment and corporate performance. The independence variable is employee’s empowerment measured by its dimension responsibility, compensation, training, accountability and communication, while the dependent variable is corporate performance measured by financial operational, teamwork, strategy and environment.
Geographical Scope: This study is delimited to multi-national firms; Exxon mobil corporation, ESSO exploration and production Nigeria Limited, and Mobil Producing Nigeria unlimited (MPN) Port Harcourt, Rivers State.
Uses of Analysis: Is the type of multi-national firms which are the individuals. The scope of this study is carried out to ascertain between employees empowerment and corporate performance.
1.8 Limitation of the Study
For any work of this nature to be meaningful as scheduled, one would of course encounter or faced with some constraint, firstly, the time frame provided for this study was short. Secondly, the uncompromising attitude of some of the responding providing useful information was also a factor that constrained the study. Usually, a study of this nature involves some level of expenditure. Therefore, finance was also a limiting factor. Finally, the sourcing of materials was a difficult task due to the fact that some materials were not available at the time of writing.