What is employee empowerment?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

What is employee empowerment?

Explanation:
Empowerment means giving employees the authority to make decisions about their work, along with the information and resources they need, and trusting them to use it. When staff have control over their decisions, they become more autonomous, feel more responsible for outcomes, and are often more motivated to perform well. This approach can lead to quicker problem-solving and better customer service because decisions don’t have to wait for a manager’s approval at every step. For example, a frontline employee might approve a small goodwill refund or adjust a schedule to meet demand within clear guidelines, instead of needing approval from higher-ups. The other options describe the opposite of empowerment: removing decision-making from staff reduces initiative and ownership; outsourcing HR decisions removes internal control and expertise from the team; and rigid procedures limit flexibility and discourage initiative.

Empowerment means giving employees the authority to make decisions about their work, along with the information and resources they need, and trusting them to use it. When staff have control over their decisions, they become more autonomous, feel more responsible for outcomes, and are often more motivated to perform well. This approach can lead to quicker problem-solving and better customer service because decisions don’t have to wait for a manager’s approval at every step. For example, a frontline employee might approve a small goodwill refund or adjust a schedule to meet demand within clear guidelines, instead of needing approval from higher-ups.

The other options describe the opposite of empowerment: removing decision-making from staff reduces initiative and ownership; outsourcing HR decisions removes internal control and expertise from the team; and rigid procedures limit flexibility and discourage initiative.

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