The original 4P’s of marketing proposed by McCarthy including product, price, place and promotion which are together called the ‘marketing mix’ are now replaced by 7P’s of marketing. The additional 3P’s including people; physical evidence and process have broadened the scope of marketing. Though all these 7 elements play extremely important role in an organization but ‘people’ element is gaining increasing importance in all kinds of organizations today. The reason being all the other six elements are controlled by people and in today’s competitive era, it is a challenge to get and retain competent employees.
Earlier the organizations were simple and employees had simple demands. But today employees cannot be fascinated with financial benefits only; they need a say in the organization. Employee empowerment provides the employees with this power. They are allowed to contribute actively into company’ decisions relating to their work. Employee empowerment involves delegation of authority across the organizational hierarchy. In the words of Porterfield, “Employee empowerment involves relocation of powers from the owners and managers of corporation to the lower-level, rank-and-file workers and purportedly represents a revolutionary alternative to traditional organizational structures.”(Duari, 2010, p.432)
Employee empowerment ensures equitable distribution of power and decision-making responsibility throughout the organization. Employee empowerment is advantageous for both the organization as well as the employees. From the organization’s point of view; employee empowerment reduces the need to supervise employees because they are now accountable for their own actions. Employee empowerment also enhances employees’ satisfaction and leads to better retention. (Messmer, 2007, p.279) For employees, it is a means of self-esteem and self-confidence because they are empowered to take decisions relating to their tasks and carry out routine activities without a need for managerial approval. Employee empowerment is therefore a much needed concept in all organizations today. (Huq, 2010, p.81)
- Durai, P. Human Resource Management. 2010. Dorling Kindersley (India) Pvt. Ltd.
- Huq, R. Employee Empowerment: The Rhetoric and the Reality. 2010. Triarchy Press.
- Messmer, M. Human Resources Kit for Dummies. 2nd Edition. 2007. Wiley Publishing Inc.