Assessing the impact of employee empowerment on organisational performance in Ghana
The advancement of technology and globalization of human talents have inspired organizations to use employee empowerment as a new human resource management technique to enhance performance. Empowerment is a mechanism through which employees are offered the authority for decision-making and responsib...
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| Tipo de recurso: | tesis doctoral |
| Estado: | Versión publicada |
| Fecha de publicación: | 2023 |
| País: | España |
| Institución: | CBUC, CESCA |
| Repositorio: | TDR. Tesis Doctorales en Red |
| OAI Identifier: | oai:www.tdx.cat:10803/687827 |
| Acceso en línea: | http://hdl.handle.net/10803/687827 |
| Access Level: | acceso abierto |
| Palabra clave: | Employee empowerment Organisational performance Affective commitment Affective engagement Citizenship behaviour Economics and Law 33 |
| Sumario: | The advancement of technology and globalization of human talents have inspired organizations to use employee empowerment as a new human resource management technique to enhance performance. Empowerment is a mechanism through which employees are offered the authority for decision-making and responsibility for their actions. Nonetheless, the contribution of empowerment to firm performance has been an issue of controversy among scholars. The views that have dominated this debate are that empowerment practices contribute significantly to performance. In contrast, others believe that empowerment is just a myth and even does not exist because managers make final decisions in the workplace. This study explores the impact of employee empowerment on firm performance in the banking industry in Ghana, with three specific objectives spread in three articles, thus each objective is digested in one article. Article 1 evaluates the direct effects of employee empowerment on firm performance. Article 2 analyses the direct and the indirect effect of employee empowerment on performance and the mediating role of affective commitment. Finally, article 3 evaluates the mediating function of organisational citizenship behaviour and employee affective engagement on the link between employee empowerment and company performance Through survey, the study drew 879 replies from nine commercial banks and eight non-commercial banks in the Bono and Asante Regions in Ghana. The first study obtained data from 301 employees, the second study gathered data from 274 participants in the commercial banks and the third study obtained data from 304 workers in the non-commercial banks. The structural and measurement models (CFA) were tested with structural equation modeling (SEM) through EQS software and SPSS in all the three articles. The results of first article show that employee access to relevant information provides vital support to firm performance, but access to opportunity to grow in the company hierarchy makes no meaningful contribution to the performance of the banking industry in Ghana. Further, it is revealed that employee access to support makes no significant input into company performance. From the psychological perspective of empowerment, competence cognition and impact cognition play a significant role in company performance. However, the meaning cognition is not a significant factor in determining the performance of the banks. In the second study, it is revealed that structural empowerment makes no direct contribution to firm performance, but performance is directly influenced by psychological empowerment. In addition, affective commitment is found as a significant contributor to company performance. Additionally, structural empowerment presents no significance to affective commitment, but commitment is significantly influenced by psychological empowerment. The assessment of the mediating mechanisms that facilitate empowerment’s influence on operations of the banks provides evidence that the banking industry needs the intervention of affective commitment to experience the significant contribution of structural and psychological empowerment to the operational outcomes of the banks. The third article found that both psychological and structural empowerment has no direct influence on organisational performance, but they are significant contributors to employee affective engagement and organisational citizenship behaviour. Organisational citizenship behaviour and affective engagement show no positive influence on business performance. The mediation analyses indicate that organisational citizenship behaviour bridges the gap between the two aspects of empowerment (structural and psychological) and performance but affect engagement is not a significant mediator, thus provides no significant support to the link between empowerment and performance. The study makes diverse contributions to theory and practice. Theoretically, the study supports the human resources management literature by analyzing the direct and indirect effects of employee empowerment on organisational performance. The study deepens the understanding of the mediating role of affective commitment, organizational citizenship behavior, and effective engagement. Finally, the study's outcome raises policy discussion among practitioners in the banking industry in emerging economies. The originality of the thesis relies on a model representing the interplay among employee empowerment, affective commitment, organizational citizenship behavior, affective engagement, and organizational performance in the banking industry in an emerging economy. |
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