Employee Disempowerment in a Small Firm (Sme): Implications for Organizational Social Capital

Organization Development JournalVol. 24 Nbr. 1, April 2006

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Summary


This case study initially set out to identify phenomena that induced employee disempowerment in a small and medium-sized enterprise (SME), operating within the automotive sector in the West Midlands region (UK). It then goes on make a theoretical link between disempowerment and social capital with the organization. The article concludes that disempowerment hinders the development of social capital, which in turn is detrimental to overall organizational performance in the long term. Causal explanations were developed through a qualitative methodological approach. Information-rich respondents, employing a purposive sampling technique, were interviewed to evaluate their perspective of the shop floor reality. These results were presented to these respondents for corrective feedback to enhance "phenomenological validity." The findings revealed a prevalence of abusive supervision, lack of job control, and diminished trust caused by managerial failure to fulfil promises and obligations.

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Employee Disempowerment in a Small Firm (Sme): Implications for Organizational Social Capital

Introduction

The term "empowerment" is generally used to refer to a form of employee involvement that has been widespread since the 1980s and focuses on task-based participation and attitudinal change (Wilkinson, 1998). Prior research suggests that empowerment can facilitate innovation (Spreitzer et al., 1999). Both practitioners and academics alike focus on the need for effective utilization of people as a key resource in maintaining competitive advantage in an uncertain environment (Wyer & Mason, 1999). Affectively committed employees are seen as having a sense of belonging and identification that increases their involvement in the organization's activities, their willingness to pursue the organization's goals, and their desire to remain with the organization (Rhoades et al., 2001).

This case study set out to identify phenomena that induced employee disempowerment in a Small to Medium-sized Enterprise (SME), in the West Midlands region, UK, and thereby offers "some speculation about the mechanisms of interruption in the empowerment process" (Kane & Montgomery, 1998, p. 271). This study was carried out at the request of the managing director of the company. Its focus was specifically on the affective components generated by the process of disempowerment, and how these factors impacted on organizational...

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