The organizational empowerment scale Russell A. Matthews, Wendy Michelle Diaz and Steven G. Cole Texas Christian University, Fort Worth, Texas, USA

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1 The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at The organizational scale Russell A. Matthews, Wendy Michelle Diaz and Steven G. Cole Texas Christian University, Fort Worth, Texas, USA Keywords Empowerment, Environmental impact assessment, Human resource management Abstract The purpose of the present research is to develop a reliable and valid scale to distinguish and measure the three environmental factors of dynamic structural framework, control of workplace decisions, and fluidity in information sharing that are conceptually related to and affect an employee s perception of. By quantifying the environmental factors that facilitate through a valid and reliable scale human resource departments will be provided with information that will suggest environmental changes they can implement to improve perceptions of on the part of employees. Strengths and weaknesses of the scale developed, the organizational scale, are also discussed. Pervasive in the literature is the conclusion that an empowered workforce will lead to achieving a competitive advantage (Conger and Kanungo, 1988; Forrester, 2000; Quinn and Spreitzer, 1997; Sundbo, 1999; Thomas, 2000). If one accepts that conclusion, it becomes important to know how a company determines what should be done in order to increase employee perception of. With the varying views of within the business context, several definitions of have been produced (e.g. Leslie et al., 1998; Randolph, 1995; Spreitzer, 1995; Thomas and Velthouse, 1990; Wilkinson, 1998). Spreitzer (1997), after an extensive review of the literature, defined two general perspectives of within a business context, the relational perspective and the psychological perspective. Relational has been referred to in the literature as top-down processing (Conger and Kanungo, 1988) as well as mechanistic (Quinn and Spreitzer, 1997; Wilkinson, 1998). It is the belief that occurs when higher levels within a hierarchy share power with lower levels within the same hierarchy (Siegall and Gardner, 2000; Spreitzer, 1997; Wilkinson, 1998), and is the most widely studied perspective. The relational perspective maintains that it is the implementation of new processes and the distribution of power that empower employees. On the other hand, the psychological perspective of focuses on the employee s perception of (Spreitzer, 1995, 1997; Thomas and Velthouse, 1990). Researchers studying psychological, also known as organic or bottom-up processing, maintain that is achieved only when psychological states produce a perception of Organizational scale 297 Received April 2002 Revised August 2002 Accepted October 2002 Personnel Review Vol. 32 No. 3, 2003 pp q MCB UP Limited DOI /

2 PR 32,3 298 within the employee (Mishra and Spreitzer, 1998; Quinn and Spreitzer, 1997; Wilkinson, 1998). The present authors agree with Quinn and Spreitzer (1997) that one perspective of is not necessarily better than the other. They propose that a possible reason why programs fail is because company decision makers are divided on how they perceive the best way to empower employees, utilizing either the relational or the psychological approach. It is suggested that, to develop a truly empowering program, elements must be drawn from both perspectives. Although interest in has led to the development of several scales that are intended to measure levels of in a workplace setting (e.g. Spreitzer, 1995; Konczak et al., 2000), the present authors could find no scale that encompasses both perspectives of in a diagnostic manner. Spreitzer (1995) focused on the psychological perspective of to develop a nomological network understanding of in the workplace. Spreitzer s nomological network of adds to Thomas and Velthouse s (1990) initial development of an model. A fourcomponent model that measures an employee s sense of meaning, competence, impact, and self-determination is proposed. Spreitzer (1995) defines meaning to be when an individual perceives a connection between their job and their own personal standards (Thomas and Velthouse, 1990). Meaning occurs when one s job tasks and one s personal values, beliefs, and behaviors possess a degree of fit (Brief and Nord, 1990). Competence is an individual s belief that he/she possesses the ability to perform necessary activities. Self-determination is defined as an individual s perception of choice in the tasks that he/she undertakes (Deci et al., 1989). Impact is the amount of influence a person feels he/she has on certain work outcomes. These four components, or states, Spreitzer cites as being necessary for interventions to be effective. Spreitzer (1995) developed a psychological scale to measure the degree to which a person is psychologically empowered in their workplace. However, Spreitzer s scale does not lend itself to obvious macrolevel uses on an organizational or team-based level. The reason why the scale does not lend itself to macro-level uses is that it does not facilitate the development and execution of strategic human resource (HR) practices intended to increase levels of employees. While the scale does serve as an instrument to be used in the determination of baseline levels of psychological, it does not provide a company with the information necessary to develop. A second scale related to is the Leader Empowering Behavior Questionnaire (LEBQ) by Konczak et al. (2000). The LEBQ was designed to measure if managers display empowering behaviors that facilitate the perception of psychological within employees. The six

3 dimensions measured by the LEBQ include delegation of authority, accountability, self-directed decision making, information sharing, skill development, and coaching for innovative performance. Konczak et al. determined that, when an employee perceives that his/her manager displays higher degrees of the six dimensions constituting the LEBQ, then the employee reports higher levels of psychological. Konczak et al. (2000) have taken the first step in developing a quantifiable measure, the LEBQ, to use in determining factors that influence an employee s level of. As intended by Konczak et al. (2000), the LEBQ can serve as a diagnostic tool in the determination of deficiencies in managerial skills with regard to the facilitation of. If HR professionals are able to quantify areas where managers possess skill deficiencies in facilitating, then those professionals can develop more effective programs to help managers develop those skills and facilitate within their employees. Since managers are only one of the elements that influence an employee s perception of, the present authors agree with Quinn and Spreitzer (1997) as well as Siegall and Gardner (2000) who propose that organizations should begin to look at the macro-organizational factors that influence an employee s perception of from both a relational and a psychological perspective. Thus, it seems reasonable to propose the development of a scale to measure that accesses both perspectives. To identify the central factors necessary to develop a useful scale, recent reviews of the literature on (e.g. Gagne et al., 1997; Quinn and Spreitzer, 1997; Siegall and Gardner, 2000; Wilkinson, 1998) were examined. Based on those reviews, the present authors propose three organizational factors that are conceptually linked to macro-environmental facilitation of : (1) Dynamic structural framework. (2) Control of workplace decisions. (3) Fluidity in information sharing. Dynamic structural framework (DSF) is conceptually defined as occurring when a company provides a clear set of modifiable guidelines that assists employee decision making both procedurally and behaviorally in an evolving work environment (Conger and Kanungo, 1988; Randolph, 1995; Quinn and Spreitzer, 1997). Conger and Kanungo (1988) propose several contextual factors that could potentially reduce an employee s sense of perceived. Examples that demonstrate an environment that would not be structured dynamically include unrealistic goal setting on the part of the company, a supervisory style that is authoritarian in nature, an over-emphasis on failures rather than learning, and the inaccessibility of upper management. Campbell Organizational scale 299

4 PR 32,3 300 and Martinko (1998) proposed that in non-dynamic environments employees will demonstrate the opposite of. That is, employees will demonstrate learned helplessness. Learned helplessness is a cognitive state in which people perform poorly because they attribute previous failures to unalterable causes. Even though the employees possess the necessary skills and abilities, and accomplishing the current task in the current environment is possible, learned helplessness may occur (Martinko and Gardner, 1982). For example, where excess politics, power distance, and negativity exist, it has been shown that employee decreases and learned helplessness increases (Campbell and Martinko, 1998). Quinn and Spreitzer (1997) as well as Randolph (1995) maintain that it is important for employees to understand the visions and goals of a company for programs to be effective. Randolph (1995) further argues that for an program to be successful decision-making processes must be salient to the employees. For the decision-making process to be salient there must be explicit guidelines for how decisions are made. Drawing the definition of DSF from examples provided by researchers in the field of, DSF thus has a strong relational or top-down processing component. However, employees must also perceive that they have an impact on the determination of things like a mission or vision statement as well as the establishment and modification of decision-making guidelines. This is not to say, however, that it is necessary for a company to redefine its mission statement every time new employees are hired. Rather, it is important that employees perceive that they would have an impact in the redefining of things such as mission statements if the need arose. DSF is not about constant or radical change, but the belief on the part of the employee that the company not only is capable of changing as the business environment evolves, but also is willing. Thus, DSF also has an organic or bottom-up processing component. The organic component of DSF allows a company, with input from employees, to be flexible enough to change with the evolving business environment. Furthermore, from the psychological perspective, part of DSF is allowing people to take risks, fail, and learn from these new experiences. DSF can be linked to what Quinn and Spreitzer (1997) termed clear vision and challenge, as well as discipline and control. Quinn and Spreitzer relate employees being able to take risk as allowing employees to look at the old problems through a new lens. Thus, DSF allows for more responsiveness to an ambiguous environment because in an unfamiliar situation employees have a repertoire of guidelines from which to draw as well as an overarching understanding of what the company wants to accomplish in the future to guide them in decision making (Quinn and Spreitzer, 1997; Randolph, 1995). The second environmental factor conceptually linked to macroorganizational facilitation of is control of workplace

5 decisions (CWD). CWD is defined as occurring when employees are allowed input into all aspects of their professional career (Conger and Kanungo, 1988; Wilkinson, 1998). Contextual factors that are conceptually contrary to CWD include a lack of meaningful and significant goals set on the part of the employee/team, and a lack of clarity and input with regard to job responsibilities (Conger and Kanungo, 1988). Wilkinson s (1998) discussion of task autonomy for teams likens itself to the present understanding of CWD. According to Wilkinson, for there to be a perception of, individuals and teams must have control over diverse responsibilities such as scheduling, the hiring of new employees, staff development, as well as goal setting. In their discussion of facilitating, Quinn and Spreitzer (1997) add to the proposed definition of CWD. They state that it is necessary for employees/teams to feel that they have discriminatory power in decision making. The examples provided by Wilkinson (1998) and Quinn and Spreitzer (1997) serve as the underlying foundation of the present conceptual understanding of CWD. Based on the current definition of CWD, more highly structured or bureaucratic organizations might tend to believe that they may never be able to empower their employees. Some organizations, by the nature of their business, must establish guidelines that do not allow an employee any control or input into a majority of the workplace decisions. In such situations it does not necessarily mean that the company cannot empower its employees. To increase CWD, companies should endeavor to allow employees control over decisions when it is possible. Furthermore, in such highly structured or bureaucratic situations, the company must define and document those guidelines regarding which employees do not have any control or input and explain to employees why the situation exists. By documenting and explaining these situations companies will be developing the third dimension of organizational, fluidity in information sharing (FIS). FIS is the third factor conceptually linked to the macro-organizational facilitation of, and it is defined as occurring when all information concerning the company is accessible to all individuals in the company (Conger and Kanungo, 1988; Randolph, 1995; Siegall and Gardner, 2000). The implication here is not that everything to do with the employee (e.g. personnel records or manager evaluation of employees) is shared. Rather, the intent of FIS is to insure that information dealing with the functioning of the company is shared. For FIS to exist employees must perceive that the company has efficient multidirectional methods in which to share vital information among all levels of the company (Wilkinson, 1998). Wilkinson states that employees cannot be limited to sharing only task-related information. Employees must also be able to express their ideas and grievances. Conger and Kanungo (1988) provide several examples that might impede an Organizational scale 301

6 PR 32,3 302 employee s sense of FIS. Their examples include poor communication structure, lack of knowledge of necessary resources, and lack of understanding of how rewards are distributed. In their initial development of an model Conger and Kanungo (1988) discuss the need for a good communication network in order to facilitate good decision making. Disruptions in the sharing of information can increase an employee s uncertainty level (Conger and Kanungo, 1988). Randolph (1995) maintains that information sharing is a critical and often the least understood component of. If information is not shared, Randolph argues, then employees are not able to behave responsibly. Furthermore, in companies with FIS, the element of trust between employees and the company is strengthened (Randolph, 1995). Workplace environmental factors are not static. Rather, organizational conditions are innately interconnected, influencing employees much more on an aggregate level than when each condition is considered independently. A macro-organizational view of allows for a gestalt understanding of the contextual factors that influence (Gagne et al., 1997; Siegall and Gardner, 2000; Thomas and Velthouse, 1990). Understanding how different parts of the macro-organization of the company affect an employee s perceived level of is useful in discussions of how to implement strategic plans to facilitate the perception of and maximize the benefits that provides to both a company and the employees. Drawing from both the relational and the psychological perspectives of, the present authors have conceptually defined three dimensions of environmental facilitators of : DSF; CWD, and FIS. The purpose of the present research is to develop a reliable and valid scale to distinguish and measure organizational factors that affect an employee s level of. By quantifying the organizational factors that facilitate through a valid and reliable scale HR departments will be provided with information that will suggest improvements they can implement to increase perceptions of on the part of employees. Experiment 1: Vignette development For two reasons it was necessary to develop vignettes designed to manipulate the perception of in the workplace. First, since college students were to be the participants in the experiments, it was necessary to manipulate their perception of. Second, workers in a company are likely to have a more homogeneous view of the company than would be desirable for scale development. The final vignettes will allow for greater control over the elements of and the range of perceived during the scale development.

7 The development of the vignettes designed to manipulate the perception of in the workplace was based on three dimensions of : (1) Control of workplace decisions (CWD) employees are allowed input into all aspects of their professional career. (2) Dynamic structural framework (DSF) the company provides a clear set of modifiable guidelines that assists employee decision making both procedurally and behaviorally in an evolving work environment. (3) Fluidity in information sharing (FIS) all information is accessible to all individuals in the company. Organizational scale 303 Method Participants. A total of 104 undergraduate students were evaluated in the vignettes. Procedure. The definitions of DSF, CWD, and FIS were used to produce 50 items representing the three dimensions. An example of a statement for CWD is Employees also have control over their work schedule. An example of a statement for DSF is The company has an established vision statement explaining company goals. For FIS an example statement is Management publishes performance information. Three professors and three graduate students familiar with the definition of presented above independently reviewed the 50 items. Based on the definitions of and the three dimensions of, they selected 22 items for possible inclusion in the final vignettes. Five of the six had to select an item for it to be considered for inclusion in the final vignettes. Next, 24 undergraduates were given the definition of and instructed to place each of the 22 items into one and only one of the three dimensions, CWD, DSF, or FIS. Participants were recruited either by inclass sign-up or at the department s sign-up board. By selecting the items that were sorted into the same dimension by at least 75 percent of the students, a list of 15 items (five from each dimension) was created. The five statements of for each dimension were used to develop eight vignette paragraphs to describe companies with varying levels of. For example, the total vignette was as follows: You work at a company where the employees have input on the reward structure, and provide reviews of their managers. Employees also have control over their work schedule, as well as their benefit and health packages. Employees also set their own goals. The company has an established vision statement explaining company goals, and a mission statement explaining how to achieve those goals. Corporate procedures are well defined and the company provides employees with mechanisms to change policy. The company encourages thinking out of the box, and criteria for setting deadlines are flexible. Financial numbers are published and the

8 PR 32,3 304 computer system is networked. Finally, management publishes performance information as well as other sensitive information and provides information on support systems. Each of the eight vignettes included all 15 statements and had the same structure. To produce the eight combinations of the three dimensions all five statements for each dimension of were either all positive or all negative. Finally, each of the 104 participants were given one and only one of the eight vignettes to read. The participants were given the definition of and were asked to imagine that they were an employee in the company described by the vignette. They were then asked to rate their perceived level of on a nine-point Likert-type scale (1 ¼ low, 9 ¼ high) for four questions. The four questions were: (1) Rate how empowered you would feel with respect to the dimension of CWD (employees were allowed input into all aspects of their professional career). (2) Rate how empowered you would feel with respect to the dimension of DSF (the company provides a clear set of guidelines that assists employee decision making both procedurally and behaviorally in an evolving work environment). (3) Rate how empowered you would feel with respect to the dimension of FIS (all information is accessible to all in the company). (4) When you consider the three dimensions and the definition of (the passage of authority and responsibility from managers to employees), rate how empowered you would feel. Results As expected, and shown in Table I, participants who read vignettes with more dimensions of reported higher levels of perceived than those who received vignettes with fewer dimensions of. A univariate analysis of variance (ANOVA) reported a significant main effect for condition (F(7,96) ¼ 6.27, p, 0.01). Scheffe s post hoc tests identified significant differences in reported perceptions of by Condition M SD n Table I. Means for eight manipulation vignettes using question (4) No CWD DSF FIS CWD and DSF CWD and FIS DSF and FIS Total

9 participants who received the total vignette and those who received the no vignette (mean difference ¼ 3.85, p, 0.01). There were also significant differences in reported for participants who read the CWD and DSF vignette and for participants who read the CWD and FIS vignette when compared with the participants who received the no vignette (mean difference ¼ 0.415, p, 0.01 and mean difference ¼ 3.46, p, 0.01 respectively). There were no other significant differences. To understand better the effects of the manipulation vignettes, they were collapsed based on the number of positive dimensions of they possessed. The resulting four conditions included no dimensions (no vignette), one positive dimension of (CWD only, DSF only, FIS only vignettes), two positive dimensions of (CWD and DSF, CWD and FIS, DSF and FIS vignettes), and all three positive dimensions of (total vignette). A univariate ANOVA reported a significant main effect (F(3,100) ¼ 13.66, p, 0.01). As presented in Table II, participants reported higher levels of perceived based on the number of positive dimensions included in the vignette they read. As reported in Table III, Scheffe s tests identified significant differences when the vignettes were collapsed based on the number of positive dimensions of included in the vignette. Participants who read the no vignettes reported significantly less than those who read vignettes with two dimensions of (mean Organizational scale 305 Collapsed condition M SD n No One dimension of Two dimensions of Total Table II. Means for collapsed conditions using question (4) Collapsed conditions I J M difference (I-J) p a No One dimension Two dimensions Total One dimension Two dimensions Total Two dimensions Total Note: a Scheffe post hoc was used for the present analysis Table III. Significant mean difference between collapsed conditions

10 PR 32,3 306 difference ¼ 3.51, p, 0.01) and those who read vignettes with total (mean difference ¼ 3.85, p, 0.01). Participants who read vignettes with one dimension of reported significantly less than those who read vignettes with two dimensions of (mean difference ¼ 1.72, p, 0.01) and those who read vignettes with three dimensions of (mean difference ¼ 2.05, p, 0.01). Participants who read vignettes with two dimensions of were not significantly different from those who read vignettes with three dimensions of. Discussion The eight vignettes developed in the present research represent the eight combinations of as described by the environmental conditions of DSF, CWD, and FIS. The primary purpose for the development of the eight vignettes based on DSF, CWD, and FIS was to allow researchers to conduct controlled research on environmental conditions that influence an employee s sense of. The intent of the vignettes is not to create a sense of a chaotic work environment on the part of the reader; rather it is to describe environments that vary in degrees of. Taken to an extreme, an empowering work environment could appear rather chaotic and a nonempowering work environment may appear extremely restrictive and stagnating. However, when functioning as the present authors envision, where there is a sharing of information throughout the company, a wide array of control on the part of the employee in the work setting, and a structure guiding employees in how they behave, a balanced and productive working environment will be achieved. Using these vignettes will allow researchers to have better control over what specific levels of participants perceive by being able to control along which dimensions participants are empowered. Furthermore, the usage of vignettes is often more cost-effective and will allow experiments to be conducted in an efficient manner. Experiment 2: Scale development Empowerment is a complicated concept with various ways to approach it (Spreitzer, 1997). Because of its complicated nature companies are often at a loss with respect to how to develop programs intended to increase employee. Further, even if a company does manage to develop a program intended to increase employee perception of, because of poor understanding of what really influences, intervention plans have a relatively high failure rate (Quinn and Spreitzer, 1997; Thomas, 2000).

11 Drawing on both the relational and the psychological perspectives of, the present authors conceptually defined three environmental dimensions that facilitate ; DSF, CWD, and FIS. An example of DSF is Employees have a say in changing company policies, an example of CWD is Employees have a say in defining their job responsibilities, and an example of FIS is Employees are provided with financial records of the company. The purpose of the present research was to use these dimensions to develop a reliable scale to distinguish and measure organizational factors that affect an employee s perception of. Quantifying the organizational factors that facilitate through a valid and reliable scale will give HR departments information that will allow them to be more proactive in the establishment of motivational programs focused on increasing in the workplace. Organizational scale 307 Method Participants. A total of 296 undergraduates participated in the experiment for course credit. Materials. The eight levels of the vignettes described in Experiment 1 were used to obtain a range of perceived. The vignettes describe work environments ranging from total (DSF, CWD, and FIS, all positively phrased) to no (DSF, CWD, and FIS, all negatively phrased). All eight vignettes were used in the scale development. Procedure A total of 12 students, who had been familiarized with the definitions of DSF, CWD, and FIS, reviewed 53 items that were based on those definitions. A third of the initial 53 items were negatively phrased. For an item to be selected, ten of the 12 reviewers had to select the item based on clarity of language and fit within the definitions. A total of 23 items were selected to be included in the initial organizational scale (OES). Nine of the selected items were negatively phrased. The procedure for both the initial scale development and the scale reliability check were as follows. Participants were recruited either by in-class sign-up or at the department s sign-up board. Participants were seated in a classroom and each participant was given one packet of materials. The packet included instructions that the participant was to read a paragraph describing a company and its structure and then answer a series of questions. Based on random assignment each packet included only one of the eight vignettes. In order to answer the questionnaire the participants were to imagine that they were an employee of the company described in the paragraph and, based on their perceptions of the company described in the paragraph, agree or disagree with the statements provided in the questionnaire. Participants were reminded that they could look at the paragraph describing the company while they completed

12 PR 32,3 308 the questionnaire. Participants were required to remain seated until everyone had completed the questionnaire. They were then debriefed and allowed to leave. Results Initial scale development. A principal component analysis with a varimax rotation with Kaiser normalization was performed on the data from the initial 145 participants who completed the OES. Three of the 23 items were eliminated because of low factor loadings. The results for the remaining 20 items indicate that, for the three factors with eigenvalues exceeding 1, the total variance explained was percent. Factor loadings, explained variance, and the items for each factor can be found in Table IV. The internal consistency values (Cronbach s alpha) for each of the three factors were: CWD ¼ 0.90, DSF ¼ 0.91, and FIS ¼ Reliability analysis of the OES. To determine the reliability of the OES using the 20 items selected, a second set of data was collected from 151 participants. A principal component analysis with a varimax rotation with Kaiser normalization was performed on the second set of data collected on the OES. One item, Item 20, Employees do not have knowledge of company-provided professional development programs, was removed for failing to load in its original factor, FIS. For the remaining 19 items, results indicate that for the three factors with eigenvalues exceeding 1 total variance explained was percent. Factor loadings and explained variance for each factor can be found in Table V. The internal consistency values (Cronbach s alpha) of the three factors for the second set of data collected were: CWD ¼ 0.90, DSF ¼ 0.91, and FIS ¼ Discussion The OES consists of 19 items, both positively and negatively phrased. An initial factor analysis demonstrated that the items that constitute the OES do support the three environmental dimensions of DSF, CWD, and FIS proposed by the current authors. In order to determine the reliability of the items a second set of data was collected. Overall the OES was demonstrated to be reliable in that items again loaded within the same dimensions. One other strength of the OES, other than demonstrating that it is reliable, is that, unlike previously developed scales, the OES has negatively phrased statements. By including negatively phrased statements possible rate errors that can occur when statements are all phrased in a particular direction can be minimized. It is proposed that, by utilizing the OES, companies will have a better understanding of the employee s perception of as affected by the company s organization. By understanding the relationship between employee perception of and the workplace, companies can be

13 Component Items Dynamic structural framework 7. Thinking out of the box behavior is appreciated The company provides information on what the company wants to accomplish in the future The company provides information on how company objectives are going to be achieved Employees have a say in changing company policies The company does not encourage risk taking with regard to work production While performing job duties, employees are not encouraged to use independent problem-solving skills The company has established production guidelines 0.61 Control of workplace decisions 9. Employees have a say in defining their job responsibilities Employees have a say in setting their own production standards Employees have discretion in when they take their paid leave of absence Employees have a say in the production teams to which they are assigned Employees have input in the hiring of new employees Employees do not have a say in the establishing of their own retirement plans Employees do not provide reviews of their manager 0.58 Fluidity in information sharing 6. Employees are not provided with financial records of the company The company does not have an efficient way to disseminate information to all levels of employees Employees have access to the information in their personal workfiles The company publishes information on the company s reward structure The company provides employees with information on company clients Employees do not have knowledge of company-provided professional development programs 0.67 Dropped 21. Employees are provided with information on how they are performing Employees do not understand how information is passed through the company Employees do not have a say in production procedures Cronbach alpha reliabilities a Explained variance a Notes: Extraction method: principal component analysis; Rotation method: varimax with Kaiser normalization; a Items 21, 22 and 23 were not included in these analyses Organizational scale 309 Table IV. Principal component analysis for scale development

14 PR 32,3 310 Component Items Dynamic structural framework 7. Thinking out of the box behavior is appreciated The company provides information on what the company wants to accomplish in the future The company provides information on how company objectives are going to be achieved Employees have a say in changing company policies The company does not encourage risk taking with regard to work production While performing job duties, employees are not encouraged to use independent problem-solving skills The company has established production guidelines 0.73 Control of workplace decisions 9. Employees have a say in defining their job responsibilities Employees have a say in setting their own production standards Employees have discretion in when they take their paid leave of absence Employees have a say in the production teams to which they are assigned Employees have input in the hiring of new employees Employees do not have a say in the establishing of their own retirement plans Employees do not provide reviews of their manager 0.77 Fluidity in information sharing 6. Employees are not provided with financial records of the company The company does not have an efficient way to disseminate information to all levels of employees Employees have access to the information in their personal workfiles The company publishes information on the company s reward structure The company provides employees with information on company clients 0.78 Table V. Principal component analysis for scale reliability check Dropped 20. Employees do not have knowledge of company-provided professional development programs Cronbach alpha reliabilities a Explained variance a Notes: Extraction method: principal component analysis; Rotation method: varimax with Kaiser normalization; a Item 20 was not included in these analyses.

15 much more efficient in the implementation of programs intended to increase. Experiment 3: Scale validity Although, as discussed in Experiment 2, the OES is reliable, before it can be considered useful in the workplace, it is necessary to test the validity. The present research has discussed two other scales: the LEBQ (Konczak et al., 2000) and Spreitzer s (1995) psychological scale. Because of its recent development little other research has utilized the LEBQ. However, there has been extensive research on using Spreitzer s (1995) scale (e.g. Konczak et al., 2000; Kraimer et al., 1999; Siegall and Gardner, 2000) and Spreitzer s psychological scale has been tested and shown to be a relative standard in research on. Thus, it was considered reasonable to test the validity of the OES by comparing it with Spreitzer s (1995) psychological scale. It was hypothesized that the environmental dimensions of DSF, CWD, and FIS would be positively related to increased levels of psychological as measured by Spreitzer s psychological scale. Organizational scale 311 Method Participants. A total of 134 undergraduates participated in the experiment for course credit. Materials. The eight vignettes described in Experiment 1 were used to manipulate the perception of. The vignettes describe a range of from total to no based on either the positive or the negative phrasing of statements representing DSF, CWD, and FIS. Two scales were used for the present experiment. Spreitzer s (1995) psychological scale is a four-component model that measures an employee s sense of meaning, competence, impact, and self-determination. The scale consists of 12 statements, all positively phrased, with three statements for each of the four dimensions: meaning, competence, self-determination, and impact. The Cronbach alpha coefficients for the four dimensions of meaning, competence, self-determination, and impact were 0.81, 0.76, 0.85, and 0.83 respectively. The OES is a 19-item scale with both positively and negatively phrased statements that measure on an environmental level with the three specific dimensions of DSF, CWD, and FIS. The Cronbach alpha coefficients for the three scale factors representing DSF, CWD, and FIS were 0.91, 0.90, and 0.81 respectively. For more in depth information on the OES and its development, review Experiment 2 of the present article. Procedure. Participants were recruited either by in-class sign-up or at the department s sign-up board. They were seated in a classroom and each

16 PR 32,3 312 participant was given one packet of materials. The packet included instructions that they were to read a paragraph describing a company and its structure and then answer a series of questions. Based on random assignment each packet included one of the eight vignettes. Besides the instructions and one vignette, included in each packet was a copy of the two questionnaires, the psychological scale and the OES. The two scales were counterbalanced. That is, half the participants completed the psychological scale and then the OES and the other half of the participants completed the OES and then the psychological scale. Prior to completing the questionnaires participants were instructed to imagine that they were an employee of the company described in the paragraph and, based on their perceptions of the company described in the paragraph, agree or disagree with the statements provided in the questionnaires. Participants were reminded that they could look at the paragraph describing the company while they completed the questionnaire. Participants were required to remain seated until everyone had completed the questionnaire. They were then debriefed and allowed to leave. Results Before any analyses were conducted questions that were reverse-scaled from the OES were re-scored on the 1-7 Likert scale. Because the two questionnaires were counterbalanced a one-way ANOVA was conducted to determine if there were any order effects depending on which scale was presented first. As shown in Table VI, there were no order effects for either the OES or the psychological scale. Since the two questionnaires use a different number of possible responses, z-scores were computed to allow for a comparison of the responses. Z-scores were computed for the four dimensions of the psychological scale and the three dimensions of the OES. Total z-scores were also computed for each questionnaire by summing the internal dimensions of the specific scale. A manipulation check was conducted to determine if there was a change in perceived levels of based on the number of dimensions of a participant received. Participants were aggregated based on the number of positive dimensions they read in their vignette. As shown in Table VII, there was a general increase in mean perceived Table VI. Ordering effects for OES and psychological scale First order Second order M SD M SD n F OES (23.35) (24.41) PsyEmp (18.61) (17.45) Note: One-way ANOVA was used for the present analysis

17 based on the number of dimensions of that were presented for both the OES and the psychological scale. The general increase is further demonstrated in Figure 1. For both scales, as the number of environmental dimensions increases, so does the report of perceived. A repeated measures ANOVA was conducted on the two questionnaires using the collapsed vignette conditions. There was no within-subject effect; however, there was a significant between-subjects effect (F (1, 3) ¼ , p, 0.001). A Scheffe post hoc test was then conducted to determine between what levels of dimensions significance occurred. As shown in Table VIII, there exists a significant difference in perceived perception depending on the number of dimensions of. It is interesting to note, based on the current analysis, that a person does not perceive a significant difference between an environment that has no and an environment that only has one dimension of. The implication then is that, for a company to truly develop a sense of in their employees, it must facilitate at least two environmental dimensions of. Organizational scale 313 Psychological scale OES Collapsed vignette M SD M SD n No One dimension Two dimensions Total Table VII. Descriptive statistics for collapsed vignettes Figure 1. Mean difference of scales

18 PR 32,3 314 A Pearson s correlation analysis was conducted to determine if, as hypothesized, a positive correlation existed between the OES and the psychological. There exists a significant correlation between the OES and Spreitzer s psychological scale (r ¼ 0.55, p, 0.01, one-tailed). As shown in Table IX, there are also significant correlations between the various dimensions of the two scales. Thus, it is demonstrated that no one dimension is causing an overall correlation between the two scales. Discussion The authors postulate that the most efficient and cost-effective method to increase employee perception of is through the altering of the organizational factors that influence. Previous research has shown that three dimensions of environmental factors exist that influence the perception of : DSF, CWD, and FIS (see Experiment 2 of the article for a more in-depth discussion). Drawing on both the psychological and the relational perspectives of and utilizing statements that represented the three dimensions of DSF, CWD, and FIS, the OES was developed. While the scale has been shown to be reliable, it was necessary to demonstrate that the three dimensions of DSF, CWD, and FIS, that constitute the OES, do indeed influence an individual s perception of. Collapsed conditions I J M difference (I-J) p Table VIII. Post hoc for collapsed vignettes Zero dimensions One dimension Two dimensions Three dimensions One dimension Two dimensions Three dimensions Two dimensions Three dimensions Note: Scheffe post hoc was used for the present analysis Psychological scale OES Competence Meaning Impact Self-determination Table IX. Correlations between the two scales, dimensions CWD 0.30** 0.49** 0.56** 0.59** DSF 0.21** 0.26** 0.37** 0.16* FIS 0.28** 0.34** 0.33** 0.28** Notes: * Correlation is significant at the 0.05 level (one-tailed) Pearson s correlation was used for the present analysis; ** Correlation is significant at the 0.01 level (one-tailed)

19 The data show that an overall score on the OES is positively related to a higher score of perceived psychological as measured by the scale developed by Spreitzer (1995). Furthermore, it was demonstrated that, as the number of perceived environmental dimensions of increases, so do reports of. Last, and of great importance in the establishment of the validity of the OES, is the fact that each of the three dimensions of the OES is significantly and positively related to reports of perceived, as measured by the four dimensions of impact, influence, competence, and self-determination of Spreitzer s (1995) scale. Organizational scale 315 Conclusion Employee motivation is of critical importance in today s competitive work environment because a motivated workforce helps to give a company a sustained competitive advantage (Pfeffer, 1998). Companies endeavor to motivate their employees in order to produce a better quality product at a lower cost, have a more stable working environment, and to attract more competent and effective personnel. One of the more recent ways in which companies have attempted to increase the motivational levels of their employees is to empower them. Empowerment is a tricky concept to grasp. Some theorize that employee is best achieved in a top-down manner. Theorists who support the top-down perspective, also known as a relational or mechanistic perspective, maintain that it is the responsibility of the company to guide the employee, to delegate more responsibility, and share more information with the employee (Quinn and Spreitzer, 1997; Randolph, 1995; Spreitzer, 1997). Conversely, others theorize that a more psychological or bottom-up perspective of is best in trying to understand and how to achieve an empowered workforce. Theorists and practitioners who hold to the psychological perspective of maintain that an employee will only be truly empowered when they, the employee, perceive that they are empowered (Mishra and Spreitzer, 1998; Quinn and Spreitzer, 1997; Spreitzer, 1995, 1997). Taking a more gestalt approach, however, there is greater utility in drawing on both perspectives than in using them independently to review and the methods companies should utilize to facilitate (Quinn and Spreitzer, 1997). To date there has been little done in the way of research to help companies efficiently gather information to determine on what areas of they need to work. The lack of useful tools for corporate use in the determination of employee levels led to the development and validation of the OES. The OES is a 19-item scale with both positively and negatively phrased statements that measure in an organization with the three specific dimensions of DSF, CWD, and FIS. DSF is defined as occurring when a

20 PR 32,3 316 company provides a clear set of modifiable guidelines that assists employee decision making both procedurally and behaviorally in an evolving work environment (Conger and Kanungo, 1988; Randolph, 1995; Quinn and Spreitzer, 1997). CWD is defined as occurring when employees are allowed input into all aspects of their professional career (Conger and Kanungo, 1988; Wilkinson, 1998). FIS is defined as occurring when all information concerning the company is accessible to all individuals in the company (Conger and Kanungo, 1988; Randolph, 1995; Siegall and Gardner, 2000). Experiment 2 showed that the OES is a reliable scale and Experiment 3 provided the initial support for its validity. Specifically, the OES was validated against Spreitzer s (1995) psychological scale. It was shown that, as an individual perceives higher levels of psychological, he/she also perceives higher levels of along the three dimensions of DSF, CWD, and FIS. Even though the results of the current study indicate that the scale is valid, future testing in various workplace settings will be necessary to establish the validity of the OES as a diagnostic tool for HR professionals. Again, as discussed earlier, Spreitzer s (1995) scale does allow HR professionals to determine at what level of perceived psychological an employee is functioning. However, it is costly and timeconsuming to try and draw any directional information from data gathered using the scale. The reason why it is difficult for HR professionals to gather information from Spreitzer s scale is that the scale deals only with how an individual perceives the workplace. Furthermore, the scale fails to give specific action information. It is proposed by the authors that the most cost-effective and efficient manner in which to increase an employee s perception of is to alter the environment in which that employee functions. Thus, the OES serves as a useful diagnostic tool because it not only allows companies to determine what levels of are perceived by employees, through its validation against Spreitzer s (1995) scale, but also gives companies insightful information on the environmental factors that could be altered in order to facilitate even greater levels of perceived on the part of the employees. The authors propose that, in order to empower their employees to the fullest, companies should endeavor to establish a work environment that, to whatever degree possible, encompasses the definitions of DSF, CWD, and FIS. However, it should be remembered that the maximization of DSF, CWD and FIS should be treated as a goal, and that maximization is not necessary to achieve an empowered workforce. In fact, it is highly unlikely that a company would be able to achieve maximum levels of all three organizational dimensions. Rather, like other conditions in the workplace, existing levels of the three dimensions will vary depending on the current climate and positioning of the company.

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