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Seven Key Benefits of an Empowered Workplace

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Organizations can expect obvious results when they implement an empowered environment. However, many people fail to realize the impact of the hidden effects of the empowerment process. These hidden benefits can have a more dramatic impact on profitability than a leader might imagine. When one considers the issue of the effective use of resources, the hidden impact of empowerment clearly demonstrates how leaders can effectively marshal the resources they are responsible for.

Many traditional managers fail to understand and comprehend how empowerment can impact their bottom line, as there are a number of hidden costs associated with restricting employee abilities and capabilities. Most are focused on their power and authority and concentrate on ways to maintain their personal power base.

Leaders, on the other hand, understand that tapping into the human potential of their employees unleashes a tremendous source of power, information and expertise that the organization can ultimately benefit from.

Most leaders are unaware of the hidden or intangible benefits associated with empowerment. However, the thoughtful leader who takes the time to consider the costs of the traditional approach will find them staggering, which is often sufficient to motivate them to move the empowerment process along as quickly as possible.

The following outlines the great number of benefits that companies can measure beyond the results of increased productivity, efficiency, effectiveness and productivity when implementing an empowered workplace.

Absenteeism

Absenteeism results from employee boredom with their jobs and a feeling that what they do is not valued and does not contribute to the success of the company. In other words, there is no personal connection between the company and the individual employee.

As employee involvement increases through empowerment, most companies experience a noticeable decrease in absenteeism because the individual contribution to the organization is sought, valued and recognized. Empowered individuals are challenged to their maximum capacity and abilities, resulting in an increase in overall job satisfaction. Consequently, the cost of lost productivity associated with absenteeism is reduced and can be directly attributed to a benefit and positive effect of empowerment.

Employee Turnover

Employee turnover is often due to a lack of value, opportunity and growth within a company. Employees feel that their only option is to look for a better job. Without job satisfaction, they appraise their work only in terms of what they are being paid.

Since empowerment taps the individual resources each employee can provide and focuses the combined efforts of all employees toward a common goal, job satisfaction increases. As a result, for the first time many employees feel that they are valued, and they come to understand their role in the company’s success. They are invited to grow with the company and expand their personal capabilities. They are rewarded and recognized for their personal contributions, which motivates them to do more and continue to grow. The combined result is that it reduces their desire to leave the company, and, in many instances, it increases their motivation to do a good job and remain with the company.

When employee turnover is reduced, the organization saves the funds to search, relocate and train new employees.

Safety

When employees are involved with the personal management of their tasks and assignments, they are empowered to work within the boundaries that enable them to make their jobs safer and more efficient. Most companies report a reduction in workers’ compensation claims and, as a result, see lower insurance premiums. This can provide significant savings, especially in the manufacturing environment where frequent accidents occur. When employees understand the financial impact of these claims, they are motivated and empowered to make the necessary changes to increase safety.

Productivity

Empowerment sparks new ideas and concepts throughout the organization, including ways to reduce waste and increase productivity and efficiency. While these may be small improvements, in the empowered environment they add up to additional profits over time.

Additionally, empowerment improves the relationships among managers, leaders and employees, which correspondingly reduces complaints and grievances. While these elements are difficult to quantify, the productivity increase attributable to the resolution of these problems positively impacts the performance of the organization.

Lawsuits

Companies that have implemented an empowerment program have experienced a significant reduction in the number of lawsuits from employees and customers. An empowered workforce experiences increased job satisfaction, fosters better relationships with customers and suppliers, and produces a higher quality product or service. All of these factors contribute to a reduction in lawsuits and attorney fees.

Benefits

Benefit claims is an area organizations often overlook when assessing the overall effects and impact of empowerment. While savings will obviously vary depending on the benefit packages provided to employees, most companies report a reduction in medical and other health-related claims as job satisfaction and fulfillment rises.

Reputation

There is a demonstrable relationship between an enlightened workplace and overall performance. Companies who have empowered their employees are more productive, retain more customers and are more profitable. They are able to withstand economic pressures and competitive demands because of overall employee involvement.

Excerpt: Empowerment: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 19.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Performance Management: The Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Delegation: Pinpoint Management Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

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Written by Timothy F. Bednarz, Ph.D.

December 9, 2013 at 1:20 pm

Ethics: Actions Do Have Consequences

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Although ethics and personal integrity appear to have a diminishing role in our culture, when a massive failure of ethics and moral standards results in corporate implosions such as the Enron bankruptcy, as well as the collapse of the financial markets people notice. There is no question that in business, the highest moral and ethical standards are expected and demanded.

Actions do have consequences. Despite the thinking in popular culture that has helped enable a number of political leaders’ “ethical lapses,” in business ethics and integrity are closely paid attention to by superiors, associates, subordinates—and most importantly, customers.

All of these people judge managers and employees by their actions, not their words. Even a minor lapse in ethical judgment is not easily forgiven or forgotten.

This is important for managers to consider because their behavior impacts people on multiple levels. The consequences and implications of any ethical decision are far-reaching and must be carefully thought through before the action is taken.

The moral and ethical behavior of a manager has many consequences and implications beyond an immediate judgment or choice. Ethical behavior and integrity play an essential role in any manager’s position, for the following reasons:

Trust

The basis of all relationships is trust. Managers are primarily responsible for the directing of human resources. While they may also be responsible for the tools and equipment associated with business, their primary charge is the management of their individual employees. In this capacity, they are dealing with superiors and subordinates in financial terms.

Superiors are relying on the manager to provide accurate reports and records of their unit’s activities. The employee relies on the manager to assure that his or her efforts are supported and performance accurately reported.

The foundation of and glue that holds these relationships together is trust. Any ethical lapse is considered a breach of trust and will result in the pillars of management collapsing. Once this occurs, the manager has lost their effectiveness.

Rapport

Rapport is the building and nurturing of quality relationships. This is a term normally used to describe relationships among employees, but it goes beyond this. Managers require good rapport at all levels with their superiors, subordinates and associates.

The manager’s role is to act as a liaison between the various levels they are in communication with. The employee has access to his or her manager. The manager has full access from senior management to support staff.

Exceptional management, support and communication means the manager must actively maintain good rapport at every level. However, building relationships and establishing rapport is a people skill that further demands trust and ethical behavior. These are the cornerstones of building rapport on all levels. Any degree of moral and ethical failure at any level will undermine the manager’s efforts and effectiveness.

Credibility

There are managers who have undoubtedly displayed lapses in moral and ethical judgment, yet still maintained their job and position. They may have shielded their actions from their superiors, but not from their subordinates. In some instances they may have made statements or promises and failed to follow up on them.

In any ethical failure, they have betrayed the trust of their subordinates. When this occurs, these managers have lost credibility in the eyes of their people, which more often than not results in sapping their motivation.

Employees will either leave or let their performance drop knowing their manager has little integrity. While these managers might think they have won in the short-term, in the long run there are profound consequences to be paid.

Reliability

Managers who have betrayed trust cannot be relied upon. If this occurs between the manager and his or her superiors, it is dealt with on the senior level, normally resulting in termination.

A loss of credibility with individual employees will result in them being unable to trust the manager. Rapport with these individuals will be eroded to the point that all work-related effectiveness is lost.

The consequences will be a revolving door of people under the manager’s responsibility, as any respectable person will not continue under these circumstances.

Reputation

A person’s reputation is the most valued possession that they have. Once destroyed, a personal reputation is difficult, if not impossible, to restore. The same is true for a company’s reputation.

A manager holds the responsibility for both his or her reputation as well as the company’s. His or her personal actions have a double, if not triple, impact since senior managers, his or her subordinates, and the company’s customers are continually examining his or her actions. This is an awesome responsibility unparalleled in magnitude in any organizational environment.

Related:

You Are Judged by the Actions You Take

Emotional Bonds are a Reflection of a Leader’s Effectiveness

Six Ways to Enhance Your Personal Credibility

 Emotional Bonds are a Reflection of a Leader’s Effectiveness

 Can You Be Trusted? The Answer May Surprise You

Excerpt: Ethics & Integrity: Pinpoint Management Skill Development Training Series by Timothy Bednarz (Majorium Business Press, Stevens Point, WI 2011)

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Ethics: Actions Do Have Consequences

with 2 comments

Although ethics and personal integrity appear to have a diminishing role in our culture, when a massive failure of ethics and moral standards results in corporate implosions such as the Enron bankruptcy, as well as the collapse of the financial markets people notice. There is no question that in business, the highest moral and ethical standards are expected and demanded.

Actions do have consequences. Despite the thinking in popular culture that has helped enable a number of political leaders’ “ethical lapses,” in business ethics and integrity are closely paid attention to by superiors, associates, subordinates—and most importantly, customers.

All of these people judge managers and employees by their actions, not their words. Even a minor lapse in ethical judgment is not easily forgiven or forgotten.

This is important for managers to consider because their behavior impacts people on multiple levels. The consequences and implications of any ethical decision are far-reaching and must be carefully thought through before the action is taken.

The moral and ethical behavior of a manager has many consequences and implications beyond an immediate judgment or choice. Ethical behavior and integrity play an essential role in any manager’s position, for the following reasons:

Trust

The basis of all relationships is trust. Managers are primarily responsible for the directing of human resources. While they may also be responsible for the tools and equipment associated with business, their primary charge is the management of their individual employees. In this capacity, they are dealing with superiors and subordinates in financial terms.

Superiors are relying on the manager to provide accurate reports and records of their unit’s activities. The employee relies on the manager to assure that his or her efforts are supported and performance accurately reported.

The foundation of and glue that holds these relationships together is trust. Any ethical lapse is considered a breach of trust and will result in the pillars of management collapsing. Once this occurs, the manager has lost their effectiveness.

Related: Can You Be Trusted? The Answer May Surprise You

Rapport

Rapport is the building and nurturing of quality relationships. This is a term normally used to describe relationships among employees, but it goes beyond this. Managers require good rapport at all levels with their superiors, subordinates and associates.

The manager’s role is to act as a liaison between the various levels they are in communication with. The employee has access to his or her manager. The manager has full access from senior management to support staff.

Exceptional management, support and communication means the manager must actively maintain good rapport at every level. However, building relationships and establishing rapport is a people skill that further demands trust and ethical behavior. These are the cornerstones of building rapport on all levels. Any degree of moral and ethical failure at any level will undermine the manager’s efforts and effectiveness.

Related: Emotional Bonds are a Reflection of a Leader’s Effectiveness

Credibility

There are managers who have undoubtedly displayed lapses in moral and ethical judgment, yet still maintained their job and position. They may have shielded their actions from their superiors, but not from their subordinates. In some instances they may have made statements or promises and failed to follow up on them.

In any ethical failure, they have betrayed the trust of their subordinates. When this occurs, these managers have lost credibility in the eyes of their people, which more often than not results in sapping their motivation.

Employees will either leave or let their performance drop knowing their manager has little integrity. While these managers might think they have won in the short-term, in the long run there are profound consequences to be paid.

Related: Six Ways to Enhance Your Personal Credibility

Reliability

Managers who have betrayed trust cannot be relied upon. If this occurs between the manager and his or her superiors, it is dealt with on the senior level, normally resulting in termination.

A loss of credibility with individual employees will result in them being unable to trust the manager. Rapport with these individuals will be eroded to the point that all work-related effectiveness is lost.

The consequences will be a revolving door of people under the manager’s responsibility, as any respectable person will not continue under these circumstances.

Related: Emotional Bonds are a Reflection of a Leader’s Effectiveness

Reputation

A person’s reputation is the most valued possession that they have. Once destroyed, a personal reputation is difficult, if not impossible, to restore. The same is true for a company’s reputation.

A manager holds the responsibility for both his or her reputation as well as the company’s. His or her personal actions have a double, if not triple, impact since senior managers, his or her subordinates, and the company’s customers are continually examining his or her actions. This is an awesome responsibility unparalleled in magnitude in any organizational environment.

Related: You Are Judged by the Actions You Take

Excerpt: Ethics & Integrity: Pinpoint Management Skill Development Training Series by Timothy Bednarz (Majorium Business Press, Stevens Point, WI 2011)

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Leadership: The divergent tale of two leaders

with one comment

Tony Hayward – CEO – BP

In 1982, James Burke, CEO of Johnson & Johnson was confronted with the news of seven poison related deaths caused by Tylenol capsules laced with cyanide. He looked the facts in the face and immediately understood the gravity of the situation. Against the vehement opposition from his management team, he decided to go directly to the public.

  • Backed with a $ 50 million product recall, Burke communicated a strong sense of concern, openness and accountability as he frequently appeared on the major television shows of the time.
    • This contributed to the restoration of public trust and saved the Tylenol brand.
  • Burke was strong, bold and decisive and this built trust and confidence.
    • He placed his personal stature and reputation on the line.
  • Burke’s proactive communications brought his message to the public, and by doing so controlled the crisis, expectations and protected his company’s image and reputation.

Fast forward to 2010:

Tony Hayward when confronted with the enormity of the Deepwater Horizon oil spill mounted a feeble public response.

  • Unlike James Burke, Hayward didn’t immediately grasp the severity of the situation.
    • He didn’t go directly to the public, but rather allowed a hostile media and government to filter his message, while they demonized Hayward and politicized the crisis.
    • He lost control, was hostage to events, and was perceived as weak and reactive.

Response:

Obviously it was easier for Johnson & Johnson to respond quickly with a total product recall, than it was for BP, which had to overcome extreme technical problems to cap a spill over a mile below the ocean’s surface.

However, Hayward could have taken a proactive position, communicating and educating the public about the challenges, progress and shaping their expectations regarding the capping of the spill and the subsequent clean up.

  • His response was further complicated by aggressive legal threats being made against BP by the Department of Justice.
    • Rather than openly communicating with the media and public, communications were effectively shut down.
  • At the same time Hayward was perceived as tone deaf with comments about getting his life back.
    • He appeared disengaged in front of Congress and unconcerned about the plight of the Gulf Coast citizens, while he attended a yacht race in England.
  • Hayward was unaware that his personal stature and reputation were on the line.

Whether or not these interpretations are true, perceptions are stronger than reality.

Consequences:

  • Hayward was ultimately ousted as BP’s CEO and complained about being demonized, victimized and vilified.
  • Contrast that with James Burke’s actions, which are hailed as a textbook response to crisis management.

Outcomes:

The two different outcomes can be attributed to diverse leadership styles.

Burke:

  • Burke was deeply influenced by Johnson & Johnson’s corporate credo, which stated that the “first responsibility” was to its customers and then to employees, management, communities, and stockholders.
    • He reacted accordingly.

Hayward:

  • Hayward placed the crisis into the context of scale. He stated that in relation to the size of the Gulf of Mexico, the spill was relatively small.
    • While that may be a factional response, it displayed a lack of empathy with the people affected by a potentially large environmental disaster.
    • He appeared indifferent to the pain and suffering experienced by these individuals.
    • It shaped a perception of an uncaring executive motivated by profit.

This was reinforced by the Obama administration, which was looking to shift the blame for its poor response. Hayward played into administration’s hands, surrendering control and losing his emotional standing with his key constituencies.

Legitimacy:

Burke:

  • James Burke understood the importance of his emotional standing with all of his key constituencies, because it was ingrained into Johnson & Johnson’s culture.

Hayward:

  • Tony Hayward did not.
    • Within a 100-day period, he destroyed his emotional bonds and standing with key constituencies.
    • When BP posted a $ 17 billion loss, he lost his emotional standing and support with his board and stockholders.
  • His reaction to the crisis unwittingly destroyed the trust, credibility and validity he needed to lead BP.

Lessons Learned:

The lessons learned from Tony Hayward’s actions and response are quite clear.

  • Leaders must pay close attention to the factors that contribute to their validity and legitimacy.
  • Trust, credibility and a balance of emotional bonds and standing are fragile.
  • They take time to develop, sometimes over the span of one’s career.

Trust and credibility can be destroyed, along with one’s reputation in an instant. Hayward placed his reputation and stature on the line, as the face of BP during this crisis. He ignored these lessons at his peril. Both suffered due to his leadership and it will take time to restore them.

For more information on this topic, refer to Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It by Timothy F. Bednarz (Majorium Business Press, Stevens Point, WI 2011)

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Originally published on the Examiner.com on September 24, 2012.

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Written by Timothy F. Bednarz, Ph.D.

October 22, 2012 at 11:31 am

Seven Key Benefits of an Empowered Workplace

with 11 comments

Organizations can expect obvious results when they implement an empowered environment. However, many people fail to realize the impact of the hidden effects of the empowerment process. These hidden benefits can have a more dramatic impact on profitability than a leader might imagine. When one considers the issue of the effective use of resources, the hidden impact of empowerment clearly demonstrates how leaders can effectively marshal the resources they are responsible for.

Many traditional managers fail to understand and comprehend how empowerment can impact their bottom line, as there are a number of hidden costs associated with restricting employee abilities and capabilities. Most are focused on their power and authority and concentrate on ways to maintain their personal power base.

Leaders, on the other hand, understand that tapping into the human potential of their employees unleashes a tremendous source of power, information and expertise that the organization can ultimately benefit from.

Most leaders are unaware of the hidden or intangible benefits associated with empowerment. However, the thoughtful leader who takes the time to consider the costs of the traditional approach will find them staggering, which is often sufficient to motivate them to move the empowerment process along as quickly as possible.

The following outlines the great number of benefits that companies can measure beyond the results of increased productivity, efficiency, effectiveness and productivity when implementing an empowered workplace.

Absenteeism

Absenteeism results from employee boredom with their jobs and a feeling that what they do is not valued and does not contribute to the success of the company. In other words, there is no personal connection between the company and the individual employee.

As employee involvement increases through empowerment, most companies experience a noticeable decrease in absenteeism because the individual contribution to the organization is sought, valued and recognized. Empowered individuals are challenged to their maximum capacity and abilities, resulting in an increase in overall job satisfaction. Consequently, the cost of lost productivity associated with absenteeism is reduced and can be directly attributed to a benefit and positive effect of empowerment.

Employee Turnover

Employee turnover is often due to a lack of value, opportunity and growth within a company. Employees feel that their only option is to look for a better job. Without job satisfaction, they appraise their work only in terms of what they are being paid.

Since empowerment taps the individual resources each employee can provide and focuses the combined efforts of all employees toward a common goal, job satisfaction increases. As a result, for the first time many employees feel that they are valued, and they come to understand their role in the company’s success. They are invited to grow with the company and expand their personal capabilities. They are rewarded and recognized for their personal contributions, which motivates them to do more and continue to grow. The combined result is that it reduces their desire to leave the company, and, in many instances, it increases their motivation to do a good job and remain with the company.

When employee turnover is reduced, the organization saves the funds to search, relocate and train new employees.

Safety

When employees are involved with the personal management of their tasks and assignments, they are empowered to work within the boundaries that enable them to make their jobs safer and more efficient. Most companies report a reduction in workers’ compensation claims and, as a result, see lower insurance premiums. This can provide significant savings, especially in the manufacturing environment where frequent accidents occur. When employees understand the financial impact of these claims, they are motivated and empowered to make the necessary changes to increase safety.

Productivity

Empowerment sparks new ideas and concepts throughout the organization, including ways to reduce waste and increase productivity and efficiency. While these may be small improvements, in the empowered environment they add up to additional profits over time.

Additionally, empowerment improves the relationships among managers, leaders and employees, which correspondingly reduces complaints and grievances. While these elements are difficult to quantify, the productivity increase attributable to the resolution of these problems positively impacts the performance of the organization.

Lawsuits

Companies that have implemented an empowerment program have experienced a significant reduction in the number of lawsuits from employees and customers. An empowered workforce experiences increased job satisfaction, fosters better relationships with customers and suppliers, and produces a higher quality product or service. All of these factors contribute to a reduction in lawsuits and attorney fees.

Benefits

Benefit claims is an area organizations often overlook when assessing the overall effects and impact of empowerment. While savings will obviously vary depending on the benefit packages provided to employees, most companies report a reduction in medical and other health-related claims as job satisfaction and fulfillment rises.

Reputation

There is a demonstrable relationship between an enlightened workplace and overall performance. Companies who have empowered their employees are more productive, retain more customers and are more profitable. They are able to withstand economic pressures and competitive demands because of overall employee involvement.

Excerpt: Empowerment: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, 2011) $ 19.95 USD

If you would like to learn more about empowering your workforce, refer to Empowerment: Pinpoint Leadership Skill Development Training Series. This training skill-pack features eight key interrelated concepts, each with their own discussion points and training activity. It is ideal as an informal training tool for coaching or personal development. It can also be used as a handbook and guide for group training discussions. Click here to learn more.

________________________________________________________________________________________
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It
Linkedin | Facebook | Twitter | Web | Blog | Catalog | 800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Written by Timothy F. Bednarz, Ph.D.

February 9, 2012 at 9:53 am

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