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Benefits of Empowerment - Mgmt 360

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Benefits of empowerment.

Employee empowerment can be a very powerful tool for the organization if used properly. It can bring different kinds of benefits to the business. The main benefit of course is the improvement in general performance and efficiency of the business. Implementing empowerment into business becomes more and more popular nowadays, because managers started to understand the power of this system. The most important goal of any business is to maximize its profit. This can be accomplished in many ways like: minimizing costs, hiring more efficient employees, entering new markets, and also employee empowerment. Employee empowerment is actually very effective and at the same time very cheap way to lower company’s costs. Empowered employees can make decisions without manager’s knowledge. It involves them deeper and deeper into the life of the organization and contributes more to the overall performance. Employee’s suggestions are extremely important in this system. In fact these suggestions make the product or service better, cheaper and more efficient. Alex Blyth in his research among major UK companies points out some interesting facts. He found out that BMW saved £10.5 million in just two years thanks to employees’ suggestions. “The ideas vary greatly in scope and nature. Screws used to be thrown out, but are now recycled. A report that was printed on A3 paper is now printed on A4, saving thousands of pounds. Halving the number of foam blocks used for soundproofing on the production process saved £115,000 a year without any negative impact. Changing the fixings used below the windscreen saved four pence per car.”
As we can see the suggestions made by workers were sometimes very simple. Blyth states that around 11,000 ideas were used by BMW last year. There are thousands examples of organizations that benefit just like BMW does from the

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