Professional Documents
Culture Documents
empowerment in
services: a framework
for analysis
Conrad Lashley
Introduction
Employee empowerment has been hailed as a management
technique which can be applied universally across all organisations
as a means of dealing with the needs of modern global business
(Barry,
1993:
Johnson,
1993;
Foy,
1994),
and across all industrial sectors. However, the service sector is said to
involve a unique cluster of tension which managers, employees and
customers have to address (Heskett et al., 1990), and the
empowerment of employees is an approach which has
been advocated for
service
sector
management (Sternberg,
1992; Lockwood, 1996).
Investigation of the use of empowerment in service sector
organisations reveals a number of diferent forms of empowerment
being applied in practice. These diferent approaches evidence a
range
of
managerial
meanings
being
applied which are based on diferent perceptions of business problems
, motives for introducing empowerment and perceived benefits
to be gained from empowerment. The fact that empowerment can
be used as a term to describe diferent initiatives provides a
convenient rhetoric which suggests that empowerment is ``in
Employee
empowerment
in services
16
9
Personnel Review,
standardised and require employees to practise service delivery in ``the one best
# MCB
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Give
n the
need
to
engag
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efectiveness
which
will
be
the
outcome
of a given level of labour employed. Human resources can be uniquely
unstable. Under certain circumstances they physically leave the
organisation, they may collectively resist management instructions
or individually just not give ``a fair days work for a fair days
pay''. Clearly, these are problems shared by all employers but
given the pivotal role of service delivery employees these issues
are of particular concern to service sector employers.
The response of many employers in the sector has been to
look to
manufacturing industry for models of control which minimised the si
gnificance
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of individual idiosyncrasies. What Levitt called the ``productionline approach to service'' (1972) or the ``industrialisation of
service'' (1976). Based on essentially Taylorist (1947) views of job
design,
they
establish
standardised
procedures and one best way of doing each task. In many cases this ext
ended to scripting the interaction with clients and left little to
the discretion of the individual service deliverers. The
consequence of this has been the rapid growth of organisations
specialising in high volume, mass produced, standardised
services which minimised the significance of labour inputs
(Bowen and Lawler, 1992) in the delivery of predictable tangible
and intangible product attributes to customers. Ritzer's (1993)
somewhat overblown comments about the ``McDonaldization of
Society'' are little more than observations about the
application of manufacturing techniques to the production of
mass services, which are themselves but one of a number of
service ofers (Wood, 1997).
Whilst this strategy was tremendously successful over the two
decades preceding 1990, many of these operators now see the limits
of
standardisation
and control. A point largely ignored by Ritzer. Apart from high labour
turnover which has been endemic in many of these firms, any
attempt to compete on service quality cuts across the rigidities
of the production line approach. Firstly, even the most
standardised
operation
encounters
occasions
when
customer service needs are dificult to predict and a quick response is
needed at the point of the service encounter. A small child in a
family group at a McDonald's is getting restive and the quick
intervention of a crew member with a balloon or a hat calms the
child. A customer knocks over his cofee in a Welcome Break and
the service operative replaces it without charge. Whilst these
responses may well be prescribed in operational manuals, they
still require employees to act with initiative and discretion. The
intangible element of the service encounter requires some form
employee
of
participation,
even
in
highly standardised and Tayloristic situations.
The second problem is in the quality of the service
encounter itself. Hochschild's (1983) work with air stewardesses
reveals much in common with ``the commercialisation of feelings''
across the service sector in general. She makes the point that
seeming to love the job becomes part of the job; and managing
the appropriate feelings of enjoyment of the customer helps the
worker in this efort. Fineman (1993) also comments on the
interplay between feelings and performance in service interactions.
Enabling
employees
to
sense
their own power and the significance of their role in the service drama
may help employees manage the emotions required of their
perfor
mance.
It
is
here
that
empo
werme
nt of
emplo
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It was more than considerate of the Marriott night porter to trace my lost
wallet it meant he had to re-trace my entire journey through Vienna. All I
could
remember
was
that
I'd
been
travelling on a Southern District streetcar. Miraculously, from this tiny piece of in
formation, the night porter from the Marriott hotel managed to trace the
route I'd travelled, the particular streetcar I was on, and my wallet. I
was astonished that he went out of his way so much to help me. But, as I now
know, everyone at Marriott works this way. personally assuming
responsibility for the needs of every guest. It's called Empowerment. And thankfull
y, they never
seem to find anything too much trouble.
(Always in the Right Place at the Right Time, Marriott).
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do
they
Organisation
Table I.
Numbers of
interviews in three
case study
organisations
Harvester
Restaurants
McDonald's
Restaurants TGI
Friday Restaurants
Number of interviews
with ``empowering''
Number of interviews
with ``empowered''
11
8
11
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38
25
Manageria
l
intentions
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Forms of
empowerme
nt
Change in
working
arrangement
s
The state of
empowerme
nt
Change
in work
behaviou
r
Organisati
on
objectives:
improved
service quality
increased
service
productivity
reduced
labour
turnover
Employee
empowerment
in services
17
5
Figure
1. The form,
state and
outcomes of
empowerme
nt
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Traditional
Figure 2.
Employment
strategies and the
locus of control
Organisatio
n Structure
and
Procedures
Technology
Externa
l
Control
Technological
Social
Leadership/
Managemen
t
Style
Work
Groups
Self
Empowerment
Professionalism
Interna
l
Control
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Empowerment through
involvement
Empowerment through
commitment
Initiatives used
A
u
t
o
n
o
m
o
u
s
w
o
rk groups
``Whatever it
takes''
training Job
enrichment
Works
counci
ls
Emplo
yee
direct
ors
Qualit
y
circles
Team
briefi
ngs
Sugge
stion schemes
Employee share ownership
Profit-sharing and bonus schemes
Quality of working life programmes (job
rotation, job enlargement)
Job
redesign
Re-training
Autonomous work
groups Job enrichment
Profit-sharing and bonus schemes
Table II.
Managerial
meanings of
empowerment
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Dimensions
Task
Employee
involvement in
production line
organisation
(High
volume,
standardised,
short time
period,
simple
technology,
theory X
organisations
)
L
o
w
discretion
Seeks
permission
Limited to task
Calculative
Controloriented
Employee involvement in
empowered organisation
(Personalised service, long
time period, complex
technology, unpredicatable,
theory Y organisations)
High discretion
Responsible
autonomy
Influences the direction of
policy Moral
Trust-oriented
Table
III. Five
dimensions of
empowerme
nt
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not stock cigars, so the employee went next door to the tobacconist
and bought one. The guest was very pleased and wrote a
letter to the company congratulating it on its excellent service.
The task allocation dimension considers the amount of
responsible autonomy an individual employee or group of
employees have in carrying out their tasks. To what extent are
they directed, or need to ask permission to complete their tasks?
To what extent do company policies and procedures lay down what
has to be done and then let them get on with it? To what extent are
there tensions between responsible autonomy and the objectives
for efective performance set by senior managers. In McDonald's
Restaurants,
a
``one
best
way'' approach involves a narrow span of control and close supervisio
n
of both
``crew'' and managers. TGI Fridays, was also tightly controlled in the
tangibles, again one best way procedures and close supervision of
standards meant that employee performance was directly
controlled. However, food and drinks service staf are encouraged
to use their initiative in finding ways to customise the service
interaction. Having said that, staf are not generally allowed to
provide discounts or free meals to customers who complain. In
Harvester Restaurants staf exercised more responsible autonomy,
they were empowered to deal with complaints, to give free drinks,
etc.,
without
reference
to
a
``team
manager'' where they felt it would resolve a situation to the guest's sa
tisfaction. In some situations staf were able to decide on stafing
levels, order stock and decide on how best to meet sales targets
without the immediate involvement of the team manager.
The power dimension is concerned with the feelings of personal
power which individuals experience as the result of being
empowered. What is it that the empowered are empowered to do?
To what extent is their power limited to tasks? To what extent does
it involve issues of policy at a more senior level
(Marchington et al., 1992)?
To what extent do management eforts to share power foster feelings
of empowerment in employees? What tensions are there between
strategic objectives and limits on individual power? In all the cases
included in these studies, arrangements were limited to what has
been described as being ``task participation'' (Geary, 1994). In other
words the empowered employee was not able to influence the
policies
which
influence
them.
Thus
at
Harvester
Restaurants, food
service staff
were able
to decide
as a
team how best to achieve a sales target which required employees
to
sell
one
extra
side
order
per
table
(Pickard,1993), but had no influence over this as an objective.
The commitment dimension explores the assumptions about the
source of employee commitment and organisational compliance in
a
partic
ular
form
of
empo
werme
nt.
To
what
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from
changes
and a lack of
institutional
support will all
have a negative
efect
on
the
way employees
perceive changes
which claim to
advocate common
cause with the em
ployer.
At
a
more
fundamental
level, it may be
that problems in
establishing
direct
links between the
se initiatives and
the desired object
ive outcomes exp
ose a flaw in
the assumptions u
nderpinning emp
owerment. Namel
y, that there is a n
atural unity
of
interest amongst
organisation
members
(Wickens, 1987)
and
that
employees have
latent
talents
and enthusiasms
which are just
waiting to be
tapped (van
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tangible
and
intangible
elements
of
the
customer experience will be simpler and easier to predict and standar
dise.
This issue of standardisation and customisation needs further
discussion because it has particular relevance for employment
strategies in service industries. It is possible to detect a potential
relationship between the degree of predictability which an
organisation has in its ability to forecast its customers'
requirements and the extent of externalised control for its employees.
The more predictable are customer needs, the more standardised
the service, the more likely it is that the organisation will be
command and control oriented, and
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organisation's em
ployment strateg
y. It is possible to
locate diferent h
ospitality service
operator's
brands
within
these quadrants.
McDonald's
Restaurants
supply a highly
standardised,
eficient,
predictable,
calculable,
controllable
product. This is n
ot just for operati
onal reasons, but
these features are
what the
customers
buy
into.
Consequently
service
interactions are
short
and
simple.
Technology
is
used
to
both
support
and
supplement the
labour element of
the
operation.
Customer
satisfaction
is
largely
dependent on the
tangible product,
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Customised Offer
Externa
l
Control
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Figure 3.
Standardisation of
customer service
and control of
employee
performance
Interna
l
Control
brand identity
tangibles/intangibles high
predictability
moderate volume
simple routine
tasks
high discretion in
intangibles authority
within limits
role-specific power
moral involvement
moderate trust
culture
The Participative
return to the table within three minutes of serving each dish, for
example. A high degree of standardisation, eficiency,
controllability, etc. is found in the production process which has
many similarities with McDonald's. However, the key diference
is
in
the
``performance'' of the employees, particularly front of house. Thus an
important element of the intangible ofer to customers is that
they are diferent, hence staf are encouraged to engage customers
in conversation, to make a fuss of a guest who is celebrating a
birthday or anniversary. Though uniforms are standardised and
compulsory, staf are encouraged to individualise them by
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adding badges and wearing their own unique hat. In many ways
the operation is typical of Schmenner's ``service shop''. The
degree of labour intensity is relatively low, the tangible elements
are standardised, but there is a strong element of ``mass
customisation'' in the way the service (intangible) element is
delivered. Employees are empowered via involvement, they are
encouraged to develop a sense of ``ownership'' of the service
encounter. This is encouraged through a combination of material
benefits, tips and bonuses on sales, and through an elaborate
selection programme, detailed training, a strong culture many
words and phrases company specific (e.g. dub-dub) and team
briefing sessions before every shift.
Harvester Restaurants is another organisation which ofers a
tightly defined brand with set menus, standard recipes and dish
lay-out round the theme of a traditional English pub. In this cases
there was a fair degree of predictability and a moderate volume of
business with an even balance between tangible and intangibles as
sources of customer satisfaction. The style of service was more
leisurely and more labour intensive than either TGI Fridays or
McDonald's. Service employees had a reasonably high degree
of discretion in the intangibles, particularly in dealing with
customer complaints, but also in creating a general ambience
in the relationship between company and customers. Whilst
there were ``one best way'' approaches to the production of meals
and drinks, service standards were generally more relaxed and
training emphasised intrinsic controls, ``treating customers as
though they were guests in your own home''. The operation
seemed to have much in common with Schmenner's ``mass
service'' in that it tended to be standardised but with more labour
intensity in the service encounter. In this case, employees
were empowered through
participation.
Employees
were
engaged
at
both
an emotional
level
through
team
membership, team briefing systems and participation in task
level decision making, and on a material level through
tips. Most service employees interviewed suggested that tips could co
mfortably double earnings, and that repeat customers were
an important factor generating good tips. Recruitment and
selection practices were less involved than those of TGI Fridays,
and were often based on personal recommendation by current
employees or friends and relatives. Where the system works well it
is based on groups with a strong social dynamic.
At this point, it has not been possible to detect and study
hospitality service organisations which occupy the top right hand
quadrant of Figure 3, but the characteristics identified are
compatible with both Heskett and Schmenner's ``professional
service''. Typically professional services require a high degree of
customised service requiring a high degree of discretion on the
part
of
the
service deliverer.
Opportunities for
direct supervisio
n by owners and
managers
are
limited
thus
there has to be
reliance
on
service providers
being empowered
to interpret and
supply
the
customer's
(client's)
needs.
Control
is
exerted through
internalisation of
professional
ethics,
through
long training and
fairly
rigorous
entry
requirements. In
the
most
traditional
examples,
doctors, lawyers,
accountants,
professional
bodies
oversee
and
monitor
professional
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will
be
shaped by perceptions and concerns about the needs of the particular
operation in question. At root these are focused on questions
about the nature of the problem. Is the concern to gain greater
commitment, or is it to benefit from the experiences and
suggestions of front line deliverers, to encourage more
participation in the service interaction, or to flatten the organisation
al structure so as to make it more responsive to its customers?
Whatever the intentions of managers the efects of
empowerment will be mediated by the feelings and experiences of
the supposedly empowered. Hence any consideration of the various
forms which empowerment takes must be
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