Empowerment According to the World Essay

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Any tactical decision must take into consideration its costs and its benefits, and be used only in those instances when the company will outperform as a result. Yes, empowerment must be aligned with strategy, but the concept of empowerment is sufficiently vague that managers may have difficulty knowing when this is the case.

When the World Bank speaks of empowerment, the context is known. It is derived from principles such as democracy and free markets. If people can do as they please then as rational economic actors they will, in aggregate, improve their economic lot. The corporation, however, is a poor analogy for the world or a nation. Corporations have specific goals, and they also have constraints with respect to funding and activities that are not present in broader societies. Management's role in empowerment is much greater than the role of governmental leaders.

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Management must not only facilitate employee empowerment but they must actively manage the process. This is because unlike politicians, managers face performance evaluation measures that tie to specific outputs. This limits the degree to which employee empowerment is critical to the success of the organization. Which brings us back to the question of congruence with strategy. In corporations, empowerment is not as simple as giving people freedom. Each company must define empowerment in its own way, which even the authors of the paper admit has been the case up until now. They provide a framework from which the issue can be discussed, but ultimately each corporation must find the specific types and amount of employee empowerment that best suits its needs.

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