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Employee

empowerment in
services: a framework
for analysis
Conrad Lashley

The School of Tourism and Hospitality


Management, Leeds Metropolitan University,
Leeds, UK
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Keywords Employees, Empowerment, Hospitality industry, Service


Abstract Employee empowerment is said to benefit all organisations. The fast
moving global economy requires that organisations learn and adapt to change
quickly, and employees have a key role to play here. This is particularly true in
modern service organisations. The empowered employee is said to respond more
quickly to customer service requests, act to rectify complaints and be more
engaged in service encounters. A more reflective approach suggests there are
diferent managerial perceptions of empowerment, resulting in empowerment being
introduced in diferent service organisations in diferent ways, and presenting
diferent benefits to managers and working experiences for the empowered. This
paper suggests that a framework of analysis needs to be developed which goes
beyond the more simplistic claims which tend to discuss empowerment as that
which is labelled empowerment. The success or failure of an initiative which claims
to be empowering will be determined by the experience of being empowered.

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

principle a good thing'' and


produces a ``win-win''
situation for employees and managers. In part these diferent percepti
ons of the service need and the appropriate match with the
management of employees, is a consequence of the diferent service
ofers being made to customers. Some service ofers require
employees to exercise discretion in detecting and
delivering customer service needs. In other cases, the serviceVol.
ofer
is highly
28 No. 3, 1999, pp. 169191.

Personnel Review,

standardised and require employees to practise service delivery in ``the one best

# MCB
University Press, 0048-3486

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way''. Reflection on both the specific applications entitled


``empowerment'' and on variations in the characteristics of the
service ofer, question the somewhat simplistic claims for the
universality
of
empowerment,
and
the
supposed
benefits which ensue.
This paper is based on a cluster of research projects which have inve
stigated diferent approaches to empowerment in similar service
businesses: Harvester Restaurants, TGI Fridays and McDonald's
Restaurants Limited operate branded restaurant chains. All are
to some extent ``McDonaldized'' (Ritzer, 1993), they use highly
standardised menus, ``one best way'' production techniques
which assist in the delivery of consistency and predictability to
customers. That said, these organisations difer in the service
ofer to customers, particularly in the extent that employees
exercise discretion to meet customer service needs. The approach
outlined in the paper is informed by these cases studies, though
the key concern of the paper is to establish a framework for
understanding empowerment in the service sector which
questions the universalistic and evangelical claims of some of the
advocates of empowerment. This framework of analysis suggests
that there is a need to approach the study of empowerment in a
systematic manner which goes beyond the label.
According to Conger and Kanungo (1988) empowerment describes
working arrangements which engage the empowered at an
emotional level. They distinguish between concepts of
empowerment which are relational and motivational. As a
relational concept empowerment is concerned with issues to do
with management style and employee participation. As a
motivational construct empowerment is individual and personal,
it is about discretion, autonomy, power and control. This
motivational
aspect
to
empowerment
becomes the defining feature of the initiative. The empowered must f
eel a sense of personal worth, with the ability to efect outcomes
and having the power to make a diference (van Oudtshoorn and
Thomas, 1993; Johnson, 1993). Advocates of empowerment claim
that employee empowerment helps firms to enthuse and enable
employees to take responsibility for the service encounter
(Barbee and Bott, 1991). The paper identifies four diferent types,
or managerial intentions, for empowering employees, which
in turn impact on the precise form the arrangements take.
Following from this, and so as to better understand the detailed
changes in working arrangements which claim to be empowering,
the paper provides a five dimensional framework of analysis. By
contrasting and comparing the detail of the changes to what the
newly empowered employee can now do, it is possible to
establish the boundaries and limits which are placed on
empowerment in any particular context.

Give
n the
need
to
engag
e

employees at an emotional level and to generate the appropriate


feelings about the service encounter, the impact of each
initiative on the employee is a crucial ingredient in meeting the
objectives set. This paper suggests that there are likely to be a
number of factors which generate positive or negative feelings
about a particular initiative. At root this

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will be concerned with the empowered employee's perception of the st


Employee
ate rather than the form of empowerment. Investigation into empowerment
empowerment must, therefore, incorporate an analysis of how
in services
individuals feel about the result of being empowered.
Finally this paper suggests that beneath the rhetoric of empowerme
nt, service firms are in different positions in relation to their
17
customers
and
markets,
and
this will impact on how managers perceive and
1
interpret empowerment. Factors
such as the
degree of customisation/standardisation and the relative importance
of tangibles/intangibles in customer satisfaction are likely to be
influential
in
determining the locus of control of employee performance.
Empowerment in the service sector
Interest in employee empowerment in service industry firms
has been associated with many of the key issues related to
employment practices in general, namely in gaining competitive
advantage through improved service quality. Paradoxically,
however,
attempts
to
gain
competitive
advantage
through service quality can present some major problems for service
operators. In the first instance, there are dificulties in defining
the successful service encounter, particularly in the intangible
sources of customer satisfaction. Customers vary considerably in
their expectations of service quality (Rust and Oliver, 1994). Indeed
individual customers may define and re-define their needs from
service deliverers as their circumstances, experiences and
expectations change. In turn, customer evaluation of a successful
service encounter, and thereby repeat visits, will be a product of
the
extent
to
which
their
experience
matches their expectations (Foulkes, 1994).
Whilst there are these dificulties in defining successful
encounters,
many
writers agree that ``front line staf'' (Johnston, 1989; Horovirz and Cud
enne-Poon, 1990; Barbee and Bott, 1991) play a crucial role in the
service encounter. There are in fact, some base level customer
expectations of employee performance, positive interpersonal
contacts,
service
deliverer
attitudes,
courtesy
and
helpfulness that are all closely related to customer evaluations of serv
ice quality
(Adelmann
et al.,
1994). Hence human
resources
management and the strategies needed to engage employees
emotionally
in
the
objective
of
customer
service
take on a new and urgent meaning.
This leads to the second dificulty for service deliverers.
Unlike other resources used within an organisation there is a
problem in predicting the levels of output, eficiency and general

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

yees seems to ofer the prize of generating feelings of commitment


to the service encounter (Barbee and Bott, 1991) with the
appropriate amount of power and the freedom to use that
power (van Oudtshoorn and Thomas, 1993) to meet customer
needs
as
they
arise.
The
extract below is from a series of advertisements by Marriott Hotels w
hich make play of the benefits of empowered employees. It
highlights the aspirations for empowerment. Here the night
porter's feelings of commitment to ``delighting

the customer'' perfectly match the organisation's commitment to its


Employee
clients. The advertisement also confirms that empowerment, empowerment
service
quality
and organisational
attempts
to
gain
in services
competitive
advantage
through
improved
service quality are entwined in some operations.

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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).

For the advocates of empowerment, empowered employees


willingly
take
responsibility for the service encounter, they respond more quickly to
customer needs, complaints and changes in customer tastes (Barbee
and Bott, 1991). The organisation will experience lower labour
turnover (Cook, 1994), there will be high staf morale and
employees
will
take
responsibility
for
their
own
performance and its improvement (Barry, 1993). Employees' inherent
skills and talents will be put to work for the organisation (Ripley
and Ripley, 1993) so as to produce more satisfied customers (Johns,
1993) and greater profits (Plunkett and Fournier, 1991).
Research methods
The observations reflected in this paper are based on case studies
of three organisations who make diferent service ofers to their
customers, and who manage their employees in diferent ways.
Each is attempting to empower employees to take responsibility
for the service encounter, though each expects employees to
exercise discretion in diferent ways. The case studies provide a
valuable context through which to explore employment practice
in context (Hartley, 1994), though these are published in detail
in other publications (Lashley, 1995; Ashness and Lashley, 1995;
Lashley, 1997). This paper reflects on the findings from the case
studies to build the framework for analysing empowerment.
In each case, the study involved semi-structured interviews
with senior managers to explore their perceptions of
empowerment, intentions for the initiative and the perceived
benefits ensuing from the changes. Interviews were also conducted

17
3

with the immediate line managers of the empowered. Again the


intention was to explore the detail of the changes on the
ground, and most importantly the practical responses from both
middle managers and those line managers whose role might
have been changed by the introduction of empowerment.
Finally, semi-structured interviews were conducted with the
``empowered'', that is the subjects of the initiative. In
particular, the study explored their perceptions of the changes,
the
boundaries
in
which
they
had
to
operate and the extent to which employees developed a sense of person
al efficacy.

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The semi-structured interviews identified key themes which


needed to be explored with each respondent. For managers and
those responsible for introducing and managing the initiative
(the empowering), the questioning explored the background to the
change in the way the organisation was to be managed
perceived problems and views as to what contribution
empowerment would make to overcoming the problems. Having
established the managerial intentions for empowerment,
interviewees were asked to describe the form of empowerment
and the changes in working arrangements which ensued. They were
then asked to comment on the success and weakness of the changes,
and comment on any plans for the future development of the
approach. For the supposedly empowered, questioning followed
similar broad themes but from their perspective. In other words,
to what extent did they share managerial views of problems and
benefits of empowerment? They were asked to comment on how the
nature of their work had changed and how they felt about it.
Fundamentally did they feel empowered? Flowing from this, the
interviews explored changes in work behaviour and their
perceptions of the benefits and limitations of the initiative. Table
I
shows
the
total
number
of
interviews in each of the three case study organisations. The table ind
icates the number of interviews that were conducted with
``empowering'' and the ``empowered'' in each organisation.
The case studies which inform this paper were founded on an
approach which suggests that empowerment needs to be based
on the systematic exploration of each aspect of empowerment.
The more evangelical claims suggest that empowerment of
employees will result in an almost automatic improvement in
organisational performance (Foy, 1994; Stewart, 1994). These models
are simplistic and do not take into account, diferent
managerial intentions, diferent forms introduced, diferences in
what
employees
can
now
do, diferent needs of employees to feel empowered and diferent impa
cts on the resulting performance exercised by employees. It is more
likely that a multi-stage model is needed to analyse initiatives and
outcomes. Figure 1 suggests a model for studying empowerment
which assumes that the organisational benefits will not be a
simple and direct trade-of. Managerial perceptions of what
empowerment is and the benefits it is supposed to deliver will
shape
the
form that is introduced
(quality circles, autonomous groups, etc.), which in turn will shape
what employees can now do that they did not do before the change.
This in turn has an impact on the feelings of those empowered,

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

28
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

experience the state of empowerment, and if they do, does the


state of empowerment result in improved work performance which
then results in the desired organisational objective?
Managerial intentions for empowerment
Once we move away from the generalised claims for
empowerment it is possible to see that the term itself is being
used to describe a wide variety of practice in service delivery. In
the Accor group of hotels, for example, empowerment has been
used to describe the use of quality circles (Barbee and Bott, 1991);
in McDonald's Restaurants, suggestion schemes (Bowen and
Lawler, 1992); ``Whatever it Takes'' employee training programmes
in Scott's Hotels (Hubrecht and Teare, 1993); employee
involvement in devising departmental service standards in
Hilton International Hotels (Hirst, 1991); autonomous work groups
and removal of levels of management in Harvester Restaurants
(Pickard, 1993); and the delegation of greater authority to service
managers in British Telecom (Foy, 1994).
Investigation of these specific initiatives reveals that there is
considerable overlap between employee empowerment, employee
participation, employee involvement and even employee
commitment. Often these terms are used interchangeably
(Collins, 1994; Cotton, 1993; Denton, 1994; Plunkett and
Fournier, 1991). Thus quality circles, autonomous work groups,
suggestion schemes and various employee share ownership
programmes are frequently discussed under these diferent
headings
without
defining
the
boundaries

between them. Clearly, these initiatives do have similar antecedents i


n that they aim to meet, in varying ways, the individual
employee's psychological needs (Watson, 1986). In addition there
is similarity in the intended outcomes. Marchington et al. (1992)
say that employee involvement is used to describe initiatives
which are largely designed and initiated by management and
intended
to
improve
communication
with
employees,
generate
greater
commitment
and
enhance
employee
contributions to the organisation. This

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might equally be said of the intentions for employee empowerment


(Sewell and Wilkinson, 1992). Indeed empowerment is an integral
feature
of
the
``soft''
version of human resource management (Legge, 1995).
Watson (1986) suggests that employment strategy tends to wax
and wane between managerial concern for control over
employee
performance
and
concern for employee commitment. Whilst this is a useful metaphor w
hich does indeed suggest that employment strategy is both
dynamic and political, it does suggest that a shift towards
employee commitment results in less organisational control. A
view frequently expressed by line mangers is that empowerment
of subordinates will result in a loss of control. In reality
empowerment as an employment strategy is concerned with both
commitment and control of employees. It is more a shift in the
locus of control (Friedman, 1977). Figure 2 provides a model which
suggests that diferent employment strategies might shift the
locus
of
control
along
a
continuum
between
externally imposed control of the individual to internally generated s
elf control.
In efect employee empowerment, ``increases [top management's] con
trol whilst
creating the impression of lessening it'' (Robbins, 1983, p. 67). Under t
his model, production line approaches to service delivery rely
largely on imposed external controls in which employee
commitment is less significant for efective performance, it is
typical of Edwards' (1979) ``technological control''. Employee
empowerment, in its more participative form, is more reliant on
internalised self-control, where the employee works to the desired
standard
and
controls
their own performance accordingly (Salaman, 1979).
Personal commitment to these standards then becomes a crucial
ingredient. The empowered employee has much in common
with Friedman's (1977) employee with ``responsible autonomy''.
Having said that, it is possible to detect variations in the locus
of
control
implied within diferent definitions of empowerment. Bowen and Law
ler (1991), suggest that empowerment is defined as ``management
strategies for sharing decision making power'' (p. 49). Others
(Barbee and Bott, 1991) define empowerment as being ``the act
of vesting substantial responsibility in the people nearest the
problem'' (p. 28). These two diferent phrases reflect more than
mere semantic diferences. They reflect diferent assumptions
about the nature of empowerment and the power of the
empowered. The first implies a shift in authority whilst the second
is concerned with a shift in responsibility.

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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My own investigation in the hospitality sector


Employee
suggests that there are probably
empowerment
four distinct but overlapping managerial intentions for empowermen
in services
t (Lashley, 1994). These are summarised in Table II. In principle they
reflect the variations in the assumptions discussed above, but there
do appear a range of managerial intentions which have their roots
in other initiatives mentioned earlier. For this reason the four
17
categories are labelled with terms which reflect their
7
antecedents.
There are three types of managerial intentions for
empowerment of operatives. Empowering through participation is
closely related to the Bowen and Lawler definition because they
are chiefly concerned with empowering employees with decision
making authority in some aspect of the work which had been
formerly the domain of management. Harvester Restaurant's use of
semi-autonomous work teams (Ashness and Lashley, 1995)
provides a good example. Employees not only dealt with and
rectified customer complaints, they also were involved in receiving
goods, securing the building and ``cashing up the tills''.
Empowerment through involvement is chiefly concerned with
gaining from the experiences and expertise of service deliverers
through consultation and joint problem solving. Managers
continue to make the decision but with inputs from employees.
The study of TGI Fridays (Lashley, 1997), confirms that preservice team briefing sessions are used to both provide
employees
with immediate information about the operation and company
objectives, but are also used to test out ideas with employees
and
gain
suggestions. Employees have little authority to make decisions, even c
omplaint handling is the responsibility of managers. Attempts at
empowerment through commitment overlap and interrelate with
both these other categories because it is hoped that improved
employee commitment will result from the changed arrangements.
However, some initiatives are distinctly aimed at winning
Managerial meaning
Empowerment through
participation

Empowerment through
involvement
Empowerment through

commitment

Empowerment through delayering

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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greater commitment to organisational service quality objectives.


As with Barbee and Bott's definition, these initiatives are
ultimately about employees taking more responsibility for the
service encounter through a variety of training programmes and
appeals to both extrinsic and intrinsic sources of job satisfaction.
McDonald's crew training includes a customer care programme
which aims to sensitise employees to customer service objectives.
Crew are encouraged to intervene in the service situation, as in the
example given above. They can give away some low cost gifts to
children.
The
limits
and
boundaries
of what they are empowered to do are narrow and restricted.
Whilst the three foregoing intentions are typically
concerned with employees, particularly front line personnel,
some initiatives empower managers within the management
hierarchy.
These
I
have
called empowerment through
delayering. The restructuring of the McDonald's MCOPCO
organisation (Lashley, 1995), and the removal of layers of
management in the external management of Harvester Restaurants
(Pickard, 1993), or empowerment of hotel managers (Jones and
Davies, 1991) are examples. Here the intention is greater
managerial focus on the source of organisational profits the
units, greater responsiveness to customer needs, reduced
management costs and the encouragement of entrepreneurialism.
In the McDonald's case, two levels of management were removed
and the unit managers were ``empowered''. In reality it meant
that they were allowed to operate with reduced contact with
their Area Supervisors. In this case, empowerment of the unit
managers meant they were not as closely supervised
by their superordinates and were ``left to get on with it''.
In suggesting these four features of managerial intentions I do
not wish to imply that these are mutually exclusive. Whilst
managers
in
some
organisations may well be more concerned with one meaning more th
an others, it is more likely that managerial actions will be driven
by
a
mixture
of
motives,
and hence will encompass more than one, or all, of these. However, it is
useful to suggest that managerial intentions are diferent and
there
are
diferent
managerial perceptions about empowerment and the benefits it will d
eliver.
The form of empowerment
Whatever the intentions of managers, initiatives which claim to be em
powering will be translated into concrete practical arrangements
which set the limits and boundaries within which the empowered
operate (Ripley and Ripley, 1993; Potter, 1994). Somewhere, these
arrangements will clarify just what the empowered have the

authority to do and for what they will be responsible. It is here


within the practical objective limits set by management that
tensions between the perceptions and needs of management are
likely to be set against the perceptions and needs of the
empowered (Conger and Kanungo, 1988). Ultimately, the success of
a particular initiative will be dependent in the first instance on
the empowered being given the authority and freedom to make
decisions which they themselves consider to be valuable,
significant and
important. Whilst this will clearly be subjectively assessed by individ
uals, who

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will difer in their evaluation of these arrangements, it is


Employee
important to arrive at
empowerment
an objective analysis of the changes which have been introduced.
in services
Our research has identified a number of dimensions of
empowerment which provide a means of describing, analysing
and locating the form of empowerment being introduced in
17
a particular company (Lashley and McGoldrick, 1994). These
9
dimensions are listed in Table III. Essentially they provide a
mechanism for identifying the boundaries and contexts set for the
form of empowerment being introduced.
Consideration of these themes creates a framework for
understanding the likely meanings of a particular form of
empowerment within a given context. Each of the five dimensions
is based on a bi-polar model which assumes a traditional
``production line'', ``top-down'' approach at one extreme and a more
empowered approach at the other.
The task dimension considers the discretion which is
allowed to the empowered in performing the task for which they
were employed. To what extent are the empowered allowed to
interpret
the
tangible
and
intangible
aspects of the organisation's services so as to satisfy customers. To wh
at extent are the brand attributes, prices, product sizes, etc., fixed,
or to what extent can they be customised? To what extent does the
need to control these issues set limits on the ability of an
organisation to empower its members? In the cases we have studied
there are frequently limits put on the employee because of the
brand attributes being marketed. Hence employees in McDonald's
Restaurants and Harvester Restaurants were not allowed to alter
menus or provide dishes of the menu, not even unit managers were
allowed to make these decisions. In TGI Fridays employees could
get a non-menu item produced if it involved ingredients which
were stocked. In most cases, and to varying degrees, employees
had some discretion over the service encounter. As stated earlier,
McDonald's had scripted the service in the past, but had dropped
this in recent years as part of a strategy to improve service
quality. Harvesters and TGI Fridays both relied on training and
service values to guide the employee in their interactions with
customers. An employee of TGI Fridays reported an
incident that seemed typical. A customer had asked for a cigar, the co
mpany do

Dimensions
Task

Task allocation Power


Commitment Culture

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
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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

extent do they follow patterns in traditional organisations


which assume that commitment is calculative and based on
material extrinsic rewards (Etzioni, 1961). To what extent does the
initiative assume a moral commitment, as the individual takes a
personal
sense
of
ownership in their activities and work?
To what extent is there recognition that individuals may difer in
their attachments and needs from work? How, if at all do the
changes address needs for a sense of equity and fairness in the
benefits

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from empowerment? Interviews with employees at Harvester


Restaurants revealed that employees working in autonomous
work teams liked the experience. Many reported that they ``liked
the extra responsibility'' (Ashness and Lashley, 1995, p. 27) and
some that this was the first time they had been given
responsibility. In TGI Fridays, employees reported that they
enjoyed the ``atmosphere'' and that ``you could have a good laugh'',
but many also reported that ``they were working here because
the money is good''. Employees are guaranteed a low basic pay,
but can substantially add to this through a bonus on food sales and
tips. Employees and managers both stated employees could
earn over 20,000 per annum, some even as much as 30,000.
The culture dimension examines the extent to which
organisational culture fosters feelings of empowerment. To what
extent can it be typified as being oriented towards openness,
learning, and employee contributions (Christensen-Hughes,
1992) and creating a climate of trust (Sternberg, 1992)? To
what extent can the culture be described as bureaucratic, role, task
or control oriented? To what extent is the initiative to empower
a part of a broad organisational culture, or just ``bolted on''?
The research with the ``delayered'' McDonald's organisation
revealed that ``empowered'' General Area Supervisors in the pilot
group experienced tensions with senior management because senior
managers wanted to retain control over the recruitment of
Restaurant
Managers,
and
to
get involved when problems occurred (Lashley, 1995).
Using this five dimension model it is possible to locate the
diferent forms which empowerment takes in practical
organisational arrangements against the managerial intentions and
the form empowerment takes quality circles autonomous work
groups ``whatever it takes training'', etc. As stated earlier,
managerial intentions may not be mono-dimensional, and particular
initiatives
may be driven by a range of intentions. However, each form of empow
erment is likely to represent diferent sources of satisfaction to
employees and represent diferent benefits to employers. Thus
quality circles are usually representative, and may provide
intrinsic satisfactions for those immediately involved (Kelly and
Kelly, 1990), but they represent a more indirect source of
satisfaction for the staf who do not take part. Managers gain
suggestions and involvement in problem solving for those closest
to the problem, but managers retain the decision making power.
Autonomous work groups do give employees more direct
involvement, all employees take part. They can provide sources
of satisfaction which meet belonging and control needs. They can
involve some task dimensions, but in the main, autonomous
work groups are about improving work organisation. Frequently

they are used in


situations where
the
immediate
organisational
needs
are
dificult
to
predict, but the
people
directly
involved
are
best placed to
respond
to
changed
circumstances.
Several
employees
at
Harvester
Restaurants
reported
that
when
the
operation
was
quiet the team
would, ``jointly
agree for one
member to go
home for the rest
of
the shift, so that t
he team's labour c
osts would be kep
t under control'' (
Ashness
and
Lashley, 1995, p.
27). ``Whatever
it
takes''
is
again a direct
form
of
involvement,
particularly for
service
personnel,
training
is
aimed
at
``giving

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staff confidence to make decisions large or small, that impact on a gue


st's stay'' (Hubrecht and Teare, 1993). Typically these
arrangements are focused at the task and interpreting customer
requirements. For employees a sense of ownership, pride in the
service encounter and the potential tip are sources of employee
satisfaction. For the organisation, employees are encouraged to be
responsive to customer needs and a greater level of customer
satisfaction is likely to follow.
Each of these examples, claim to empower employees, yet the
brief discussion above shows that each represents different sources
of
satisfaction
for
employees.
The arrangements are themselves diferent and appear to meet varied
managerial needs. Certainly it is possible to identify alternative
ways of managing and motivating employees which involve
diferent amounts of discretion, autonomy, power, sources of
commitment and cultural contexts, all claiming to be
empowering. By considering the detail of the changes against the five
dimensions it is possible to develop a much closer picture of the
form
of
empowerment,
the
consistency of the arrangements and the limits placed upon them.
My research with hospitality operators provides some useful vehicl
es for the analysis of forms of empowerment. For example, it is
possible to describe Harvester Restaurants as empowering
front line personnel through participation. In this case it takes
the form of autonomous work groups where employees have
virtually no discretion in the tangible aspects of their task,
though they have some limited discretion in the intangible elements o
f the task. There is a high degree of responsible autonomy in task
allocation.
Power
is
limited, however, to
the task level with little opportunity to influence objectives outside
the immediate job. Commitment is in part calculative though, for
some individuals, arrangements do meet psychological needs within
a culture which is best typified as being control oriented.
The state of empowerment
The feelings of the empowered are fundamental to understanding
the
concept
of empowerment and variations in form and application. Most definiti
ons of the state rather than the form of empowerment stress the
need for the individual to feel in control (Conger, 1989), have a sense
of personal power together with the freedom to use that power (van
Oudtshoorn and Thomas, 1993) and a sense of personal eficacy and
self
determination
(Alpander,
1991).
Similarly,
Thomas
and Velthouse (1990) suggest a four dimensional model of employee m
otivation based on a cognitive assessment of the competence,
impact, meaningfulness and choice associated with a set of
changes. In other words the state of empowerment is likely to be

a consequence of the individual's assessment of their ability to be


efective, that they could make a diference, in a task which
they feel is worthwhile and they have some degree of freedom to act a
s they see fit within a given context.
Attempts to empower service workers will be tested against the
experience of being empowered and the sense of personal
eficacy which is created. Empowerment, therefore, involves both
the objective facts of what a person is

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empowered to do and the subjective feelings which the individual


experiences as a result. In these circumstances individual
diferences, orientations to work and needs are likely to be
important factors in the way an individual interprets and responds
to a particular change (Alpander, 1991). Managerial initiatives to
empower employees are introduced to meet commercial objectives.
In the case of service workers, the objectives may be to improve
service quality or service worker productivity, or improve job
satisfaction and reduce labour turnover. Managerial evaluations of
empowerment will therefore turn on the extent that
these initiatives result in worker behaviour which meets the desired o
bjectives.
Whilst there is some research, on service workers which
identifies factors likely to result in outcomes of empowerment as
measured by pay satisfaction, promotion satisfaction and
intentions to leave (Sparrowe, 1994), few studies draw the links
between these feelings of empowerment and increased
productivity or improvements in service quality. Studies in other
fields (Kelly and Kelly, 1991; Marchington et al., 1992; Guest et al.,
1993) however, suggest that the assumed link between the
introduction of employee involvement and participation, and a
reduction
in
``them
and
us''
attitudes
or
increased
productivity are frequently misguided.
Kelly and Kelly (1991) for example, explore a range of managerial
initiatives which have much in common with forms of
empowerment discussed earlier. They studied companies who had
recently introduced a variety of schemes autonomous work
groups, quality circles, joint consultation, employee share
ownership, profit-related pay and communication programmes.
Managerial ambitions were also similar to those expressed for
empowerment. It was hoped that these changes in arrangements
would result in changes in underlying attitudes and in turn this
would
lead
to
gains
in
productivity
and
quality
improvements. Interestingly
their analysis
of
a number of
studies into diferent initiatives suggests that most result in
positive
attitudes
to
the
change
itself.
That is, employees appear to enjoy being involved in autonomous wor
k groups, quality circles, share schemes, etc. However, few
studies show a positive change in attitudes to the organisation
itself. In other words ``them and us'' attitudes persist. Cotton
(1993), in a wide ranging study of ``employee involvement''
suggests that evidence supporting increases in productivity is
somewhat ambiguous and variable between techniques. Kelly and Kell
y look to social psychology and suggest that four factors are likely
to negatively impact on the acceptability of the changes. A lack
of choice in the selection of the techniques, a lack of trust
between parties, a perception of inequality in the benefits gained

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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Oudtshoorn and Thomas, 1993). Others would argue that it is


unlikely that organisation members will share objectives and
motives (Fox, 1974). Conflicts are bound to exist and individuals are
likely to differ in both their expectations from work and the
significance of employment in their lives. Furthermore,
empowerment can be seen as disempowering, because it shifts
employee
participation from a collective to an individual form (Collins, 1994). E
mpowerment
of individuals is much less of a challenge to managerial prerogatives.
Contextual considerations
Clearly the service sector covers a wide diversity of organisations.
There is not the space here to elaborate definitions and
categories, but in our quest to understand the use of
empowerment within the sector it is necessary to select a
few features
which may be influential. Empowerment is
chiefly
concerned with attempts to improve service quality and the
``intangible''
elements of the consumer
purchase.
The
intangibles are the defining feature of services (Cowell, 1984),
but not all services are in the same position with their
customers, particularly in the significance of tangible and
intangible aspects of the consumer purchase.
Furthermore it is possible to see that the significance of the
intangible element in customer satisfaction might vary within the
same product/brand under diferent circumstances. Pizza Hut
provides
a
useful
example.
The
company markets essentially the same tangible products through tw
o channels of distribution. The first is a ``home delivery service''
and the second is through a chain of restaurants. The significance
of tangibles and intangibles for customer satisfaction is
diferent in each situation. For home delivery the tangible aspect
of the product will be most important, though delivery times and
the politeness of the delivery person are also influential. In the
restaurant situation, intangible elements become much more
significant
to
customer
satisfaction, though tangible aspects of product and environment also
count.
A second feature, is that satisfaction gained from the
tangible aspect increases with price, sources of satisfaction gained
from intangibles increases much more. Balmer and Baum (1993)
develop this point with particular reference to accommodation
markets, though the broad principles are probably true for other
markets. Firms operating in some markets will have an added
need to pay attention to the intangible elements of the customer purc
hase. Their employees will need to actively participate in service
definition and delivery. In other sections of the market, both the

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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thereby the more likely it is that employee performance will be


externally controlled and monitored. As customer service becomes
more customised and requirements dificult to predict, the more
likely it is that employees will be called to interpret customer
needs,
and
hence
employment
strategies
will
tend
more towards internalised controls.
Though written from operations management perspectives, both Sc
hmenner (1995) and Heskett (1990) identify links between
service
customisation/
standardisation and the organisation of human resources. Schmenner
produces four ``styles'' of service operation by comparing the
degree of customisation/ standardisation with the degree of labour
intensity in the service. Thus the ``service factory'' has low
labour intensity and is standardised. The ``service shop'' has high
customisation and low labour intensity. The ``mass service'' is
standardised and high in labour intensity, and the ``professional
service'' is both customised and high in labour intensity.
Heskett (1990) also uses standardisation/customisation as an
important consideration, though compares this with the degree
of customer contact with employees. Heskett also produces four
ideal types for the organisation of work. Most are similar to the
terms used by Schmenner, though the ``service shop is known
as the `technological service''' by Heskett.
Both these models are valuable because they do show that the
management of human resources will difer according to the
nature of the service being ofered to customers. However, they
do tend to miss the key point that employees need to exercise
varying amounts of discretion in meeting customer
service needs, and organisations have to find new ways of controlling
employee performance. Empowerment appears to ofer the
prospect of engaging the employee on an emotional level which
ensures commitment to organisational objectives, but which also
ensures control of the employee's performance because they
have internalised the organisation's policies, procedures and
commitment to its customers. That said, the nature of the
service being provided, the nature of the brand, the degree of
discretion needed, the complexity and intensity of labour in
the service provided are likely to influence the perceptions of
managers and thereby the form of empowerment introduced.
Figure 3 attempts to show the relationship between the locus of
control of employee
performance
and
the
degree
of
standardisation/customisation
of
customer service. It suggests the existence of
four quadrants in which the locus
of
control, the degree
of predictability, significance of tangibles and intangibles will
interact with the dimensions of empowerment to help fashion
an

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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The Professional Style

Customised Offer

The Involvement Style

brand identity intangiblebrand identity tangibles/intangibles


dominant moderate predictability/market change low predictability
low volume
moderate/high volume
complex
simple/expanding tasks
tasks low discretion
high
discretion
responsible autonomy
ask permission share information
power to shape
task-specific power
objectives
moral involvement psychological
calculative commitment
trust culture
needs moderate control culture

Externa
l
Control
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Figure 3.
Standardisation of
customer service
and control of
employee
performance

brand identity tangibledominant high predictability


high volume
simple routine
tasks low
discretion
asks permission
task-specific
power
calculative
involvement control
culture

The Command and Control


Style

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

Style Standardised Offer

The Participative

though intangibles can be important in providing speedy,


predictable interactions. The brand is tightly defined and
operational management is highly focused on ensuring that the
``one best way'' systems are being adhered to. It is typical of
Schmenner's (1995) ``service factory''. In these circumstances,
there is
little scope for
employees to
use their
discretion, though as the example quoted above shows, some
discretion may be needed when extraordinary service incidents
occur. Consequently, managerial intentions for and the forms of
empowerment introduced tend to be restricted and limited to
empowerment via commitment. Extensive training programmes
and observation checklists are used to assess performance. Rewards
are largely based on performance of ``one best way''. Extra pay is
awarded
to
employees
whose
working
practices
most closely match the operational manual and training programme.
TGI Fridays is typical of an organisation which also ofers a
tight brand definition, but with standardised menus, recipes and
dish
appearance,
decor,
building design, uniforms, etc. Even some elements of the service enco
unter are standardised through service targets the starter must
be served within seven minutes and the dub-dub (waiter/ess) must

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

Employee empowerment in services

18
7

Personne
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conduct and entry processes. It may be that examples of


``professional'' hospitality service providers will be restricted to
catering consultants or advisers in franchise organisations.
It is not my intention to suggest that these are mutually exclusive c
ategories.
In the ``real'' world it is
likely that firms may well be constrained by a cluster of
contradictory pressures which push and pull the pattern of the
strategy.
In
addition, it is necessary to bear in mind Watson's (1986) point that em
ployment strategy involves choice. Managers will select
particular approaches which have most relevance to their own
experiences, perceptions, political processes and organisational
culture. I suggest these positions as a means of identifying patterns
within organisational employment strategy, and as a contribution
to the debate about the ``fit'' between wider business policies and
strategies for managing human resources.
Conclusions
Concern to engage employees at an emotional level so as to
gain
greater
commitment, generate greater involvement in service quality and inc
rease labour
stability is not just restricted to organisations operating service secto
r businesses. Firms in all sectors of economic activity have
shown increased interest in initiatives which are based on
employee
involvement
or
employee
participation.
The nature of the service encounter and the key role played by service
employees contributes an additional urgency in service sector
organisations. Some organisations have attempted to resolve the
``problem of employing people'' in service organisations by
exploring techniques developed in manufacturing. These
``production line'' approaches have resulted in employment
strategies which deskilled and scripted service encounters. Whilst
these approaches have been successful for some operators, there has
been recent interest in approaches which empower employees to
``do whatever it takes'' to make the service event a
success for the customer, and ultimately the organisation.
On face value, empowerment has much to ofer organisations
operating
services. Empowered employees will react to customer needs as they a
rise, they
will respond quickly to complaints and will take personal pride in ens
uring that service encounters are a success. Importantly, they will
feel pride and concern for the customer experience. A more
reflective consideration suggests that claims for employee
empowerment need to take account of diferent definitions and
meanings used by managers. These diferent managerial meanings

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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sensitive to the potential tensions between managerial meanings and


Employee
employees experiences. A framework of analysis based on a number empowerment
of key dimensions is needed. It is thereby possible to locate the
in services
variety of initiatives which claim to be empowering against the
assumptions implicit in the form selected. Attempts to detect
patterns in employment strategies which are said to be
18
empowering need to understand the contextual factors which will
impact on managerial perceptions, and definitions of the
9
``problem''. In particular the significance of tangible and
intangible elements in customer satisfaction, and the degree of
standardisation and customisation within the service encounter,
are likely to influence the degree of discretion required by
employees and thereby the locus of control implicit in the
organisation's employment strategy. Finally, it is important to
remember that whilst these contextual factors may well constrain
and limit managerial choices, there may well be issues of ``fit'' relatin
g employee
empowerment to
the
organisation's context.
Employment strategy is ultimately about variability and choice.
For all our attempts to provide meaning, there is no easy check-off
where a given organisational environment will result in the
application of a particular form of empowerment.
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