A multi-level exploration of empowerment mediators. Issue 7 (31st July 2014)

• Record Type: Journal Article
• Authors: Ritter, Barbara Anne; Venkatraman, Srinivasan; Schlauch, Carrie
• Editors: Humphreys, Paul; Humphreys, Paul
• Is Part Of: Leadership & organization development journal. Volume 35:Issue 7(2014)
• Publication Date: 2014-07-31
• Subjects: Organizational change -- Periodicals; Leadership -- Periodicals; 658.4
• DOI: 10.1108/LODJ-07-2012-0085
• Languages: English
• ISSNs: 0143-7739

Abstract

Abstract : Purpose: The purpose of this paper is to empirically explore the underlying mechanisms through which empowerment affects organizational outcomes via a multidimensional model. Specifically, the paper suggests that empowerment climate is positively related to psychological empowerment and the effect of psychological empowerment on the outcome variable of job satisfaction is mediated by justice perceptions and role clarity. Design/methodology/approach: 765 employees at the executive level across 26 distinct groups in a large manufacturing firm participated in the survey. Multilevel analyses based on both Hierarchical Linear Modeling and Multilevel Structural Equation Modeling techniques were utilized to test the hypotheses. Findings: This research demonstrated that empowerment climate significantly affected psychological empowerment and that perceptions of justice and role clarity mediated the relationship between psychological empowerment and job satisfaction. Additional analyses demonstrated that empowerment climate did not significantly affect organizational outcomes above and beyond psychological empowerment, justice, and role clarity. Practical implications: The current study suggests that managers concerned with increasing employee perceptions of justice may be able to do so by increasing perceptions of employee empowerment. As only individual employee perceptions of empowerment related directly to organizational outcomes, this demonstrates the importance for managers to understand perceptions of employees. Originality/value: Exploring these mechanisms will strengthen our knowledge regarding how empowerment works to enhance organizational effectiveness. This will enable practitioners to better determine how and when empowerment will be most effective.