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Empowerment, Motivation, and Performance
The purpose of this study was to ascertain how the three psychological dimensions of empowerment are affected by specific types of performance feedback and performance-based rewards for lower-level employees. The three psychological dimensions include the impact on a firms profit, task competence, and self-determination. It further investigates the inter-dependence between individual performance, motivation, and the three dimensions of empowerment. Finally, it investigates whether the predictions put forward by Spreitzer (1995) on surveys of managers can also apply to lower-level workers.
The research participants are low-level employees that are involved directly in customer service, data entry, and data processing and selling to customers among other duties. Research in this area is necessary. Despite the supposed relationship between employment and motivation, little research especially in the field of accounting has been done to ascertain how an organizations control system affects low-level workers empowerment, drive, performance, and the general perception of empowerment by this group. Though an earlier survey had been done by Spreitzer (1995, 1996), it focused on middle level managers, and further research was needed to confirm whether the findings could equally apply to lower-level workers (those without managerial duties and/experience).
Earlier research failed to identify specific performance feedback and performance reward systems. lastly, the balanced scorecard approach emphasizes the role played by motivated employees on a firms success, yet the few available writings on this subject are rather superficial. The research was conducted at a large Midwestern University. The methodology used is both quantitative and experimental. It employs the use of questionnaires, surveys, and statistical analysis (Correlation, Wald test, Lagrange multiplier, and confirmatory factor analysis) in testing and validating several hypotheses.
The study sample involved a group of one hundred and twenty-five undergraduate students. A large number of the participants (79.2%) were sourced from sophomore and junior level business classes. The choice of this group was largely influenced by the fact that these students lacked management experience and could therefore be employed to carry out simple front office tasks such as data processing and customer service. Another group comprising 6.4% was freshman, and 14.4 percent were seniors or master level students. 59.2 percent of the participants were male while 40.8 percent were females. The majority of the participants were from the U.S. or Canada (85.6 percent), 8.0 percent from Asia, and the remaining 6.4 percent were from Europe, Latin America, or from other nations.
There are several dependent and independent variables in the study. Independent variables are grouped into manipulated variables (Performance Feedback and Performance-Based Rewards) and control variables (Self-esteem and Locus of Control). Dependent variables were empowerment (Impact, competence, and self-determination), task motivation, and performance (profit). The manipulated variables examine the effects of certain types of performance feedback such as information on the wages for the period, information on the number of questions they got correctly or incorrectly, and information on specific amounts of revenue and costs they generated for the firm due to correct or incorrect codes. The manipulated variables were measured against the three dimensions of empowerment mentioned earlier and performance rewards (flat wage or a performance-based scheme). The control variables are used to show that self-esteem and locus of control may or may not empower lower-level employees (Drake, et al. 2007).
From the correlation coefficient (r) results with an alpha value of 0.05, an increase in the level of feedback could lead to a higher level of competence, self-determination, and impact on profitability. Among the manipulated variables, feedback is significantly correlated with impact (r =.26), hence is no significance. Additionally, feedback and self-determination are equally not correlated as indicated by r =-0.4. However, the feedback was positively correlated to impact as indicated by an r=.24. Correlation between the level of feedback and competence was significant as indicated by r=.04. A significant correlation was also evident between competence and the control variable self-esteem (r=.29).
Performance-based rewards are not correlated to the levels of impact as indicated by r=.11, yet they are inversely correlated with competence as indicated by r=-.19. There is also a significant negative correlation between performance-based reward systems and the level of perceived self-determination as indicated by r=-.25. From the descriptive statistics table which shows the distribution of data points in the data set, the perceived impact had high levels of consistency in the flat-wage reward system for the financial condition with a deviation of 3.8 from the mean. Under the performance-based reward system, the perceived impact was more consistent in pay only condition as illustrated by a 2.8 deviation from the mean followed by financial condition with a deviation of 3.6 from the mean.
The largest inconsistency was registered under flat wage-non financial condition with 5.1 distributions around the mean. The perceived confidence was more consistent in non-financial and financial flat wage reward systems compared to the performance-based reward system (Drake, et al. 2007). Perceived self-determination was more consistent under a flat wage reward system as reported by a 1.7 deviation from the mean under pay only system and 1.8 deviations from the mean under a reward system that is nonfinancial. Under a performance-based reward system, the best level of consistency was in the nonfinancial condition that reported a deviation of 3.1 from the mean followed by pay only condition (3.2). Task motivation was more consistent in the nonfinancial-performance reward system with a deviation of 6.8 and least consistent under pay only performance-based reward system had a deviation of 11.7. The performance was more consistent under a reward system that is flat-waged. Pay the only condition had a deviation of 281 and least consistent under a uniform wage reward system while the financial condition reported a deviation of 327 from the mean.
From the data analysis, it is evident that performance reward and performance feedback systems are important in as far as the empowerment, performance, and task motivation of lower-level employees is concerned. The financial reward had a significant positive effect on the perceived impact. Equally performance-based rewards are negatively significant on self-determination and perceived competence. Also, to achieve higher levels of perceived impact, the motivation levels of employees must be very high.
Observations
Generally, the overall presentation of the results of the analysis is very clear. The author has indicated a step by step process thereby guiding the reader. He has categorized the results of the analysis under respective the hypothesis being tested. This has made it easy to ascertain whether the hypothesis was rejected or accepted. Also, he uses simple and understandable phrases in explaining the analysis process and the results. Like any other research, the study had limitations that the authors acknowledge. For instance, the study assumed that the feedback given by lower-level employees are dependent on the outcomes of their efforts and does not include the outcomes of other employees or a larger workgroup. Also, the reward schemes were limited and the result can be different if a variety of reward schemes are employed. Lastly, the test employed was rather easy and may not be representative of the difficult work environment of lower-level employees. However, the findings are a good starting point for future research in this area as it points out how the other types of feedback and the two reward schemes influence the various perspectives of empowerment.
Reference
Drake, R. U. et al. (2007). Empowerment, motivation and performance: Examining the impact of feedback and incentives on non-management employees. Behavioural research in accounting, 19, 77-89.
Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of Management Journal, 38(5) 1442-1465.
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