Malaysian Management Review QUALITY PRACTICES THAT PAY: EMPOWERMENT AND TEAMWORK School of Management, Universiti Sains Malaysia,

Penang DR ZAINAL ARIFFIN AHMAD School of Management, Universiti Sains Malaysia, Penang and NOORLIZA KARIA
ABSTRACT This study focuses on the impact of empowerment and teamwork (E&T) practices on 104 employees working in five Malaysian public and private organizations that have implemented some level of TQM practices. The results of this study reveal that in organizations that practice some degree of E&T, their employees experience increases in job satisfaction, organizational commitment, career satisfaction and job involvement. The greater the extent of E&T practices the greater the employees' job satisfaction, organizational commitment, career satisfaction and job involvement. Meanwhile, trust in the organization contributes directly to significant job satisfaction, organizational commitment and career satisfaction. The TQM practice of employee suggestion programme was found to have a direct influence on job satisfaction, and employee autonomy has an impact on job involvement. Keywords: TQM, empowerment, teamwork, satisfaction, quality practices. INTRODUCTION Total Quality Management (TQM) propagates a quality culture that emphasizes employees as the most important resource of the organization. It is a participative system empowering all employees to take responsibility for improving quality within the organization (Luthans, 1995). Empowerment and teamwork (E&T) as TQM practices are powerful instruments for quality culture that encourage employee involvement, motivation, satisfaction and commitment. Osland's (1997) case study showed that working together with a production unit leads to better attitude. Evidence from the literature suggests that TQM practices improved the level of job involvement, job satisfaction and commitment to organization (Poister and Harris, 1997; Kerr, 1996; Buttler, 1996; Guimareas, 1996). The studies showed that TQM practices are producing changes in employee activities and attitude. Employees who dedicate their efforts to achieve a high level of quality product/service will be affected most directly and immediately after the implementation of quality practices/TQM. Purcell and Hutchsion (1996) found that middle managers from organizations that practice some level of TQM feel less frustration in their work and closer to top management. Therefore, E&T practices have a positive impact on employees.

So how do E&T practices benefit the employees? REVIEW OF THE LITERATURE The literature on Total Quality Management (TQM) is replete with many different definitions of TQM, but most authors discuss or describe the involvement or empowerment of all employees within an organization (Silos, 1999; Hendericks, 1999; Cox, 1995; Dumond, 1995). TQM, a continuous process that is people focused and strives to increase customer satisfaction, is grouped into four practices, namely, customer focus, training and education, empowerment and teamwork, and continuous improvement and problem prevention (Noorliza, 1999). According to Lemieux (1996), whatever name TQM goes by, its three basic components are constant: quality, customer satisfaction and continuous improvement. The word "total" refers to every aspect and every process of the business system. Anschutz (1995) purports that the single purpose of TQM is to improve the performance of business. In order to achieve that purpose, TQM is broken down into eight critical components, namely, employee involvement, training, supplier quality management, customer focus, quality measurement, quality leadership, quality policies and process improvement. Meanwhile, Hendericks (1999) states that the four principles of TQM are total customer satisfaction, employee involvement, continuous improvement and long-term partnership with suppliers and customers. Empowerment and Teamwork (E&T) This article will focus specifically on the TQM practice of empowerment and teamwork (E&T) practices, which are also known as the following: total employee involvement (TEI) (Silos, 1999; Cox, 1995), employee suggestion programmes (Anschutz, 1995), employee empowerment (Noorliza, 1999; FosterFishman, 1997) and teamwork (Anderson, 1995; Anschutz, 1995). These concepts are similar in that they involved ideas such as the empowered-work team, employee suggestion programme, employee's participation in decision making and problem solving, employee autonomy and organization trust. Teamwork means working together, which can lead to a better attitude and facilitate the employee's ability to work together to get the job done. Most successful organizations are those that achieve a partnership between workers and managers. According to Anschutz (1995), participation in teamwork, continuous learning and flexibility were the major factors for successful organizations to achieve a partnership between workers and managers. Silos (1999) stated that the key to Japanese efficiency was in how the people work together: their empowerment and teamwork. One way of empowering employees is to give them the resources, responsibility and authority to plan, organize, implement, measure their work and make decisions that are necessary for

them to maximize their contribution towards, the organization with efficient and effective operation (Noorliza, 1999). Employees' suggestion programmes are an area of potential for employees' involvement in the quality process to improve the job, the product/service quality, the process efficiency, the work area in general, or the worker's life and the company as a whole (Anschutz, 1995). When management implements the quality process, the bottom-up is the best approach (Weick, 1985). Further, Weick (1985) suggests that trust in the organization helps connect individual employees to the larger organization and increases their willingness to support change. Such trust may emerge as a belief in the positive vision of organization employees' leaders and in the support and cooperation of co-workers and subordinates (Foster-Fishman, 1997). Otherwise, employees will never feel ownership of the process. PURPOSE OF THE STUDY The purpose of this study was to examine the empowerment and teamwork (E&T) practices and their impact on job involvement, job satisfaction, career satisfaction and organizational commitment. The authors purport that practising E&T in the organization can yield better and long-lasting results on employees' job satisfaction, organizational commitment, career satisfaction and job involvement. THEORETICAL FRAMEWORK Given the impact of empowerment and teamwork (E&T) practices on the employees, the theoretical framework was developed as illustrated in Figure 1: FIGURE 1 Theoretical Model Independent Variable Dependent Variable Empowerment and teamwork practices * Job involvement * Empowered-teamwork * Job satisfaction * Employee suggestion programme * Career satisfaction * Employee autonomy * Organizational commitment * Employee participation * Organization trust HYPOTHESES In order to answer the research question, "How do empowerment and teamwork (E & T) practices benefit the employees? " , the following hypotheses were developed:

Hypo H1 E&T practices versus Job Involvement H1 Empowered-teamwork leads to positive impact on job involvement. H1 Employee suggestion programme leads to positive impact on job involvement. H1 Employee autonomy leads to positive impact on job involvement. H1 Employee participation leads to positive impact on job involvement H1 Organization trust leads to positive impact on job involvement. Hypo H2 E&T practices versus Job Satisfaction H2 Empowered-teamwork leads to positive impact on job satisfaction. H2 Employee suggestion programme leads to positive impact on job satisfaction. H2 Employee autonomy leads to positive impact on job satisfaction. H2 Employee participation leads to positive impact on job satisfaction. H2 Organization trust leads to positive impact on job satisfaction. Hypo H3 E&T practices versus Career Satisfaction H3 Empowered-teamwork leads to positive impact on career satisfaction. H3 Employee suggestion program1me leads to positive impact on career satisfaction. H3 Employee autonomy leads to positive impact on career satisfaction. H3 Employee participation leads to positive impact on career satisfaction. H3 Organization trusts leads to positive impact on career satisfaction. Hypo H4 E&T practices versus Organisational Commitment H4 Empowered-teamwork leads to positive impact on organizational commitment.

H4 Employee suggestion programme leads to positive impact on organizational commitment. H4 Employee autonomy leads to positive impact on organizational commitment. H4 Employee participation leads to positive impact on organizational commitment. H4 Organization trusts leads to positive impact on organizational commitment. METHODOLOGY The independent variable in this study is empowerment and teamwork (E&T) practices, which are operationalized as follows: Empowered-teamwork: The extent to which the organization practice increases employees' control in work and allows them to work together. In other words, the practice allows employees at all levels to be more involved in the job and to work together company wide. Employee suggestion programme: The extent to which the organization practice allows employees to be free and innovative in implementing their own solution to their work problems. Employee autonomy: The extent to which the organization practice enhances the employees' power/control over their work and increases the amount of authority in making decision and improvement in the organization. Employee participation: The extent to which the organization practice allows employees at all levels (especially lower level employees) to be involved in job and quality, and to participate in decision making, improvement activities and problem solving. Organization trust: The extent to which the organization practice trusts their employees' capabilities and abilities to have control over their work, to run or to make changes to the organization. The dependent variables in the study are job involvement, job satisfaction, career satisfaction and organizational commitment and are defined as follows: Job Involvement Job involvement refers to the overall effective reaction of employees to their involvement in the job, participation in decision making and involvement in quality improvement. The idea of empowering employees is to get employees to feel more involved in their jobs as well as quality, participate in the decision making and improvement activities. In other words, E&T practices require maximum participation and involvement of

employees at all levels to work together company wide (Guimareas, 1996; Luthans, 1995; Kanungo, 1982). Job Satisfaction Job satisfaction refers to an affective reaction of individuals to specific aspects of their job or positive emotional status (Weiss, 1967). Specifically, it refers to employee's satisfaction with the suggestion programme, teamwork and organization culture. E&T practices create the best environment that elicits the best in the employees so that they can maximize their contribution toward the achievement of the organization's goals. E&T practices focus on the employees' satisfaction of using their minds and creativity to improve the place where they work and the goods/services they produce. As identified by McClelland the practices target the satisfaction of three needs: empowering employee will increases authority and responsibility (the need for power), allowing them to be innovative in implementing their own solution to the problem (the need for achievement), and finally, fostering a heightened recognition of the need for cooperation, communication and teamwork (the need for affiliation) (Bounds, 1995). Career Satisfaction Career satisfaction refers to overall affective reaction of individuals to their career (Greenhaus, et al. 1990). Specifically, it refers to the employees who want to proceed towards achieving their career and goals, utilizing their skills and abilities, and improving their quality of work. E&T practices also lead to a particular environment and a set of managerial actions that give direction to employee motivation and the successful accomplishment of goals. Later, these satisfied employees would enhance their level of career satisfaction. Organizational Commitment Organizational commitment refers to an affective reaction of employee commitment to the whole organization, specifically in quality improvement and the degree of attachment and loyalty towards the organization. As the employees believe that the quality of product/service is their job, E&T practices can retain employees and gain their loyalty by creating a positive working environment such as trust and feeling of ownership (Anderson, 1995; Anschutz, 1995). INSTRUMENTS The questionnaire on E&T practices was adapted from Powell (1995). It was developed to identify the extent/degree of E&T practices. The practices were measured in terms of empowered-teamwork, employee suggestion programme, employee autonomy, employee participation and organization trust. The job involvement, job satisfaction, career satisfaction and organizational commitment questionnaires were derived and adapted from Kanungo (1992), Weiss, et al. (1967), Greenhaus,

et al. (1990) and Mowday, Steers and Porter (1979) respectively. SAMPLING A total of 200 employees from five organizations in Penang that implemented TQM practices were randomly selected and asked to complete the mail questionnaires. Only 104 questionnaires were completed and returned, giving a response rate of 52 per cent. The questionnaires were distributed to all employees from different job levels and functions within these organizations. They were distributed through an officer/coordinator from either the Quality or Administration Department in the five organizations. STATISTICAL TESTING AND ANALYSES Correlation studies were used to determine the relationship between the dependent and independent variables. E&T practices were regressed against job involvement, job satisfaction, career satisfaction and organizational commitment. The regression confirmed for significance of the independent variable. Simple regression was used to explain each of the dependent variables. SAMPLE PROFILE Table 1 represents the respondents' profile. The sample comprises almost equal numbers of TABLE 1 Sample Profile Demographic Category Frequency (N) Valid Variable Percentage Gender Male 50 48.5 Female 53 51.5 Missing 01 Marital Status Single 29 28.2 Married 74 71.8 Missing 01 Education High School/Diploma 68 66.7 Degree/Post Graduate 34 33.3 Missing 02 Job Level Non-managerial 34 37.0 Managerial 58 63.0 Missing 12

Job Function Administration 61 66.3 Production 12 13.0 Marketing 04 04.0 Engineering 15 16.3 Missing 12 Age 24 years or younger 04 04.0 25 - 29 years 20 20.2 30 - 34 years 16 16.2 35 - 39 years 24 24.2 40 - 44 years 28 28.3 45 years onward 07 07.1 Missing 05 Current Working Less than 5 years 36 35.6 Experience 5 - 9 years 15 14.9 10 - 14 years 11 10.9 15 years onward 39 38.6 Missing 03 males and females, of whom 72 per cent were married. Most (64 per cent) held at least high school/diploma education and had worked with the organization for more than five years. The majority of the employees were at the managerial level (63 per cent) and in the administration department (66.3 per cent). Table 2 shows the background of the organizations. The sample comprises equal numbers of employees from private and public organizations, of which 58.8 per cent have been practising TQM for more than three years and 41.2 per cent have been practising TQM for less than three years. About 43.1 per cent of the organizations have received the ISO 9000 certification. Private organizations comprise overseas multinational corporations (65.4 per cent), Malaysian multinational corporations (32.7 per cent) and small and medium industries (1.9 per cent). RESULTS The degree of E&T practices in the organizations was largely positive. As shown in Table 3, E&T practices are approximation to a normal distribution. The respondents ranked employee

suggestion programme as the most practised followed by empowered-teamwork, organization trust, employee participation and employee autonomy. TABLE 3 Summary of Independent Variables Variable Mean SD Empowered-Teamwork 3.52 0.97 Employee Suggestion Programme 3.57 1.12 Employee Autonomy 3.02 0.93 Employee Participation 3.28 0.92 Organization trust 3.33 0.84 PEARSON CORRELATION OF E&T PRACTICES ON DEPENDENT VARIABLES The correlation coefficients between E&T practices (the independent variables) and the dependent variables such as job involvement, job satisfaction, career satisfaction and organizational commitment are tabulated in Table 4. From the table, it can be seen that E&T practices are positively correlated to job satisfaction, organizational commitment, career satisfaction and job involvement. Some observations are presented: Table 2 Organizational Background Demographic Category Frequency (N) Valid Variable Percentage (%) Organization Status Private 51 50.0 Public 52 50.0 Organization Type Overseas Multinational Corporation 34 65.4 Malaysian Multinational Corporation 17 32.7 Small & Medium Industry (SMI) 34 ISO 90000 Status Yes 44 43.1 No 58 56.9 Missing 02

Years Practising TQM Less than 3 years 21 43.1 3 - 5 years 16 31.4 6 - 9 years 12 23.5 More than 10 years 02 03.9 Missing 53 TABLE 4 Summary of Hypotheses Hypo Ref E&T practices lead to positive impact on job involvement. No. HI Coefficient Result H11 Empowered-teamwork 0.156 x H12 Employee suggestion programme 0.338** v H13 Employee autonomy 0.355** v H14 Employee participation 0.246* v H15 Organization trust 0.342** v Hypo Ref E&T practices lead to positive impact on job satisfaction. No. H2 Coefficient Result H21 Empowered-teamwork 0.317** v H22 Employee suggestion programme 0.506** v H23 Employee autonomy 0.472** v H24 Employee participation 0.387** v H25 Organization trust 0.525** v Hypo Ref E&T practices lead to positive impact on career satisfaction. No. H3 Coefficient Result H31 Empowered-teamwork 0.106 x H32 Employee suggestion programme 0.401** v H33 Employee autonomy 0.358** v

H34 Employee participation 0.251* v H35 Organization trust 0.446** v Hypo Ref E&T practices lead to positive impact on No. H4 organizational commitment. H41 Empowered-teamwork 0.200* v H42 Employee suggestion programme 0.442* v H43 Employee autonomy 0.468** v H44 Employee participation 0.210* v H45 Organization trust 0.472** v ** Correlation is significant at the level 0.01 level (2-tailed) * Correlation is significant at the level 0.05 level (2-tailed) 1. Empowered-teamwork significantly leads to a positive impact on job satisfaction and organizational commitment. 2. Employee suggestion programme significantly leads to positive impact on job satisfaction, organizational commitment, career satisfaction and job involvement. 3. Employee autonomy significantly leads to positive impact on job satisfaction, organizational commitment, career satisfaction and job involvement. 4. Employee participation in decision making significantly leads to positive impact on job satisfaction, career satisfaction, job involvement and organizational commitment. 5. Organization trust significantly leads to positive impact on job satisfaction, organizational commitment, career satisfaction and job involvement. Regression analysis was conducted to regress the E&T practices against job involvement, job satisfaction, career satisfaction and organizational commitment. The summary of the result analysis is depicted in Table 5. 1. The employee suggestion programme, autonomy, participation and organization trust significantly explain about 15 per cent of variance in job involvement. Employee autonomy directly contributes to job involvement. 2. Empowered-teamwork, employee suggestion programme, employee autonomy, employee participation and organization trust significantly explain about 32.2 per cent of variance of job satisfaction. Employee suggestion programme and organization trust directly contribute to job satisfaction significantly at p < 0.0005 level, while other practices indirectly contribute positively to job satisfaction. Coefficient Result

3. Employee suggestion program, employee autonomy, employee participation and organization trust significantly explain about 22 per cent of variance in career satisfaction. Organization trust has a direct influence on employee's career satisfaction. Other practices indirectly influence career satisfaction. 4. Employee suggestion programme, employee autonomy, employee participation and organization trust significantly explain about 31.2 per cent of Variance in organizational commitment. Organization trust directly contributes to organizational commitment. Indirectly, other practices may contribute positively to organizational commitment. CONCLUSIONS AND MANAGERIAL IMPLICATIONS To the research question of how E&T practices benefit the employees, the findings of this study suggest that employees in public and private organizations committed to E&T practices gain tremendous benefits in terms of increased involvement, motivation and commitment. These practices called for employees' involvement in decision making, planning and freedom to control and manage their own work area. In this manner, the employees feel more involved, more satisfied in the job and more committed to quality as well as to the organization. Therefore, teamwork practices resulted in increased employees' job satisfaction, organizational commitment, TABLE 5 Summary of Regression Analysis Test of Association Coefficient Hypo Ref E&T practices contribute to job involvement, No. Hn job satisfaction, career satisfaction and organizational commitment. R2 Prob>F Result H1 H12, H13, H14 and H15 contribute to job involvement. 0.003** Accept 15.0%

H2 H21, H22, H23, H24, and H25 contribute to job satisfaction. 32.2% 0.000*** Accept H3 H32, H33, H34 and H35 contribute to career satisfaction. 22.0% 0.000*** Accept H4 H41, H42, H43, H44 and H45 contribute 31.2% 0.000*** Accept To organizational commitment. Note: *** significant at p < 0.0005 ** Significant at p < 0.005 career satisfaction and job involvement. The greater the extent of E&T practices, the greater the job involvement, job satisfaction, career satisfaction and organizational commitment. In terms of the TQM organization, one is encouraged to think that human quality control is just as important as

statistical quality control. Thus, the implication to Malaysian managers is for them to practise empowerment by encouraging employees to participate in autonomous work groups, quality circles, teambuilding, survey feedback, quality of work life programmes and the like. According to French and Bell (1999), participation enhances empowerment, and empowerment in turn enhances performance and the individual well being of the employees as well as the managers. In addition, organizational trust was found to directly contribute to job satisfaction, organization commitment, career satisfaction and job involvement. This suggests that employees require support and trust from executives and management teams for more E&T practices in the organizations. It is important that management practise empowerment and trust their employees' capabilities to have control over their working lives. Trust in the organization helps the individual employee increase his/her willingness to change the way of thinking about quality culture. The implication to managers is for them to inculcate a sense of trust in their employees' ability to run or to make changes. It may be the best approach especially in implementing quality as the greater the trust in the organization, the greater the job satisfaction, organizational commitment, career satisfaction and job involvement. Meanwhile, employee autonomy was found to have a direct influence on job involvement. This means that employees in the organizations seek and require the power and resources to establish their control over their own work. This suggests that E&T practices in the organization are needed to allow employees to be in control of and manage their own work. Management and managers must be willing and able to expand their power structure to provide (that is, to empower) their employees with greater access to resources and more choices in conducting their work. These changes in the power structure redistribute employee control in their work and increase the amount of authority-in making decisions and improvements in the organization. Therefore, the greater the employee autonomy practised in the organization, the greater the job satisfaction, organizational commitment, career satisfaction and job involvement. However, the findings also suggest that all employees at every level must increase their skills and confidence to accept and take on greater responsibility. The employee suggestion programme was found to directly contribute to job satisfaction, meaning that employee suggestion programmes allow employees to be free and innovative in implementing their own solutions to their work problems. Managers must encourage their employees to solve their own problems. The greater the extent of using their minds and creativity to improve their workplace, the greater is the employees' satisfaction. Furthermore, employees expressed the need for more management consideration of their ideas and suggestions (as well as sharing ideas across work groups) in order for them to be more involved, satisfied and committed to quality as well as to the organization. The employees, especially front-liners, are better advised about the

customers' needs or the quality of the products they produce. Executives and management teams should help employees to overcome the employees' fear of making suggestions and fear of being blamed for the problems. Thus, executives and management teams must maintain the proper environment and demonstrate visible commitment particularly in allocating resources to the quality effort in order to benefit from continual, full and active participation of all employees. Furthermore, they themselves must participate in the improvement and teamwork. In addition, the training departments should provide employees with skills to analyze problems and develop solutions to the problems as well as participative skills. Of special interest is the lack of significant relationship between empowered-teamwork and job involvement and career satisfaction, although empowered teamwork is ranked second after employee suggestion programmes in terms of frequency of practice. This suggests that the Malaysian workforce is still quite unfamiliar with th6 full benefit of highly empowered-teams as espoused by Tom Peters in his book, Liberation Management (1992). Peters asserts that cross-functional, autonomous, empowered teams are what the best organizations are currently using to outdistance the competition. It seems that organizations in Malaysia are still practising the traditional approach in which the employees are used to being told what to do. One can argue that it is hard to change our cultural values of respect of the elders (translated as not to question the superiors) or maintaining harmony and saving face (not to show one is better than one's boss). However, to inculcate a quality culture, it is important that Malaysian managers train their employees in team skills and empower them to work as a team in order to gain the positive impact of empowerment on employee job satisfaction, organizational commitment, career satisfaction and job involvement. The training should be geared towards preparing employees with better teamwork, proper attitude towards customers, and skills to empower, participate and solve problem. Related to the issue of making teamwork as the new corporate culture for the organizations is the issue of performance appraisal. Management should conduct formal appraisals of team performance rather than on an individual basis in order to motivate the whole team to perform well. A case in point is a recent study of the applications of TQM in a public institution, in which employees frequently cited the current practice of rewarding individual excellence (as in the New Remuneration System) as anti-thesis to the development of teamwork vis-a-vis a quality culture in the public sector (Zainal and Zuraidah, 1999). FUTURE RESEARCH Since no extensive research has been done to obtain the influence of E&T practices on employees, specifically on job involvement, job satisfaction, career satisfaction and

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