Empowerment is essential to increase productivity among employee.
The out come of employee empowerment in service industry can bring long-term success. The purpose of this research is to analysis and achieves depth knowledge and understanding on employee empowerment in the context of service industry by comparing the perspective of manager and employee. And provide suggestions to service industry how to gain more productively through empower the employee. This result will be obtained by testing the efficiency of the employee empowerment variables. The earlier discussion on employee empowerment in the service industry has lead to the main research question.
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On this era, the arrival of an information-based, knowledge-intensive, service driven economy has forced a massive of change on companies worldwide, most dramatically in the way they must redefine their relationship with their employees (Bartlett 2002). Hill and Huq (2004) argued that specifically, it emanated from the realization that traditional hierarchical ‘command and control’ organizations were struggling to meet the growing demands for flexibility and demands for flexibility and quality. The employees respond most excellent and creatively not when management does tightly control them, placed in narrowly defined job and treated like unwelcoming necessity. But instead, when they are given broader responsibilities, and encouraged to contribute and help to take satisfaction in their jobs (Walton 1985). That’s why now a day, employee of organization and how management manages them are becoming more important because many other source of competitive success is less powerful than they once were.
Traditional sources of success- technology, protected or regulated market, access to financial resource and economies of scale can still provide competitive advantage, but to a lesser degree now than in the past, leaving organizational culture and capabilities, derived from how people are managed, as comparatively more vital (Henry and Maryle, 2002). As, organization’s sustainable competitive advantage is its people that why management need to engage all the human resource to active company’s long time success. In the modern world Empowerment is one of the key tools, which a manager can use frequently to involve and manage organization’s people to achieve competitive advantage. As Campbell (2009,p8) pointed out that ‘‘People are your most valuable asset. To get the most out of employees, empower is essential”.
The aim of Empowerment to create a culture where employee have freedom to express themselves and have the liberty to make decisions about how they work, where there is always the opportunity to give constructive feedback, and where everyone is equal and approachable (Beaven 2009).
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