Effect of Empowerment

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Problem Statement

To identify the effect of Employee Empowerment on turnover Intention and Job Satisfaction in Pakistani context as Employee Empowerment is crucial in determining the Turnover Intention and Job Satisfaction of an employee, specifically in banking sector. Employees have to deal directly with the customers

Significance

This research is beneficial not only for chosen sector (banking sector of Pakistan) but also multiple sectors that comes around because empowerment is a basic and important concern for every organization dealing with employees and customers. As it is an important factor helping organizations to avoid and solve all hard and soft problems coming their way. As every organization deals with some sort of technicality, every day. There’s needed to be proactive environment. This research is significant for organizations who are concerned about their employees and who want to delegate authority rightly and fairly.

In past there was more dominancy in every field especially banking. Because banking is all about daily transactions and customer dealing. Turnover had been increased due to lack of employee involvement and less authority. But according to many authors it is observed that job satisfaction can be increased and turnover can be reduced through employee participation and delegation of authority along with the motivation of the employees.

Organizations that are committed to the growth of their employees recognize employee empowerment as one of their most important methods to motivate employees. Employee empowerment is also a key strategy to enable people who have the need, the answers, and the knowledge, to make decisions about how to best serve customers. This is a key thing for banking sector because bankers have to make their customers, repeat customers. So, the main reason for choosing this sector is to publish a research that helps organizations recovering any type of turnover and employee dissatisfaction issues. Pakistan’s GDP is $167 billion which makes it the 48th largest economy in the world and Pakistan is also regarded to having second largest economy in South Asia. From the independence of Pakistan, commercial banks are serving as a nation economic engine. The banking sector remained strong even after the privatization of banks except National bank of Pakistan. In Pakistan, service sector is contributing 16.7% of the total workforce. Pakistan has a strong microfinance system and the key priority of policy makers and regulators is to strengthen and promote microfinance. So for internationally, making Pakistan’s banking sector strong must be a plus. It is necessary to highlight the key issues that may be derailing for the economy. So, this research better serves to jot that problems down and work on the better ways to improve employee motivation and increase satisfaction with their jobs. This research will also provide an overview to active participants in businesses of service sector to have knowledge of important aspects of employee empowerment and turnover intentions. This will also determine the effect of empowerment on job satisfaction and turnover intention for banking sector of Pakistan specially related to human resource management like job autonomy, team work and leadership behavior. Questionnaires that are designed will also serve to investigate the level of difference in job satisfaction among male and female employees working in banks. According to Buksh foundation of Pakistan, major change in economy has also been led through women empowerment. By treating them as fair as men will also lead to more productive and co-operative environment to work in. in Pakistan. By letting female empowered, enhanced the overall contribution to the services sector. This can also be taken as an initiative to entrepreneurial perspective, because employees given rights can help in new initiatives and ideas. This research is not limited to only banking sector of Pakistan but also every sector can gain benefit out of this. For example many other services sectors like nursing, hospitality. They all are also dealing with the empowerment plans and implementation. Schools, colleges wherever there is hierarchical structure, empowerment is there. Transportation, airlines can also take suggestions for implementation of empowerment. As in Pakistan 63% of males are employed and the remaining number is for females. This research serves as a communicator and helper for empowering both in a better way to create a healthy productive environment. Because success of economy is possible by taking benefit from all means whether it is technical or labor.

A famous line by a HR Scholar “You should take extra measures for your internal customer like employees working in your organization as they have are the one who deals with your external customer that results in generating huge revenues for your organizations.

Research Objectives:

The objectives for which the research was conducted are as follows:

- To determine the relationship between the Employee Empowerment and Turnover Intention and Job Satisfaction.

- To determine if the employees scoring high in Employee Empowerment show low Turnover Intention in banking Sector of Pakistan.

- To determine if the employees scoring high in Empowerment show higher job satisfaction in banking sector of Pakistan.

Chapter 2

Literature Review

Employee Empowerment

Empowerment means encouraging people to take decisions with least interference from higher management (Handy, 1993).Employee empowerment is a way of giving authority to the employees to make important decisions on their own about their daily activities (Hass, 2010).It is a process of sharing information, power, resources and opportunity with employees so that they can make decisions to solve problems and improve service and performance. Employee Empowerment means giving authority to employees to make decisions. It is a form of liberty in which employee makes decisions to insure maximum satisfaction to customers. Empowerment is primary, essential and an exceptional aspect for success and growth of any business and increase productivity (Hunjra, 2011).Empowerment means giving confidence to employees together with management to utilize their skills and experience by presenting them with power to use more judgment and discreteness in their work.

Ripley& Ripley (1992) and Spatz (2000) state that empowerment can increase