Quantifying the Cost of Employee Empowerment
SYNOPSIS
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The Title of the Study Is
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QUANTIFYING THE "SOFT" COSTS OF EMPOWERING EMPLOYEES
Rationale for the Study
Generally, people are most underutilized but highly productive resource of an enterprise. And that is why it becomes imperative for the management to empower the employees. Employee Empowerment refers to enlargement of an employee’s job responsibility by giving him the authority of decision making about his own job without prior approval of his immediate supervisor so that action would be taken without delay or loss of opportunity. Empowerment is the measure of degree of responsibility and authority given to an employee in an organization.
Through Employee Empowerment, employees are supported and encouraged to utilize their skills, abilities and creativity by accepting accountability for their work. Empowerment occurs when employees are adequately trained, provided with all the relevant information, the best possible tools, fully involved in key decisions, and are fairly rewarded. But the entire empowerment process involves cost. A budget needs to be set aside for training and upskilling employees for growing them as organizational assets, which should be justified in terms of benefits it draws.
This study aims at assessing the “soft” costs associated with employee empowerment and to justify it by benefits associated with it.
Objectives
1. To assess the cost of employee empowerment with reference to skill development by training, autonomy on job site and job enlargement. 2. To assess absenteeism costs in service and manufacturing organizations. 3. To measure the costs to search for, relocate, and train new employees. 4. Compare the cost of employee empowerment against absenteeism and turnover. 5. To suggest/prioritize various Employee Empowerment measures under given business condition.
Research Methodology Descriptive
-------------------------------------------------
The Title of the Study Is
-------------------------------------------------
QUANTIFYING THE "SOFT" COSTS OF EMPOWERING EMPLOYEES
Rationale for the Study
Generally, people are most underutilized but highly productive resource of an enterprise. And that is why it becomes imperative for the management to empower the employees. Employee Empowerment refers to enlargement of an employee’s job responsibility by giving him the authority of decision making about his own job without prior approval of his immediate supervisor so that action would be taken without delay or loss of opportunity. Empowerment is the measure of degree of responsibility and authority given to an employee in an organization.
Through Employee Empowerment, employees are supported and encouraged to utilize their skills, abilities and creativity by accepting accountability for their work. Empowerment occurs when employees are adequately trained, provided with all the relevant information, the best possible tools, fully involved in key decisions, and are fairly rewarded. But the entire empowerment process involves cost. A budget needs to be set aside for training and upskilling employees for growing them as organizational assets, which should be justified in terms of benefits it draws.
This study aims at assessing the “soft” costs associated with employee empowerment and to justify it by benefits associated with it.
Objectives
1. To assess the cost of employee empowerment with reference to skill development by training, autonomy on job site and job enlargement. 2. To assess absenteeism costs in service and manufacturing organizations. 3. To measure the costs to search for, relocate, and train new employees. 4. Compare the cost of employee empowerment against absenteeism and turnover. 5. To suggest/prioritize various Employee Empowerment measures under given business condition.
Research Methodology Descriptive