A multi-level exploration of empowerment mediators

Abstract

Purpose – The purpose of this paper is to empirically explore the underlying mechanisms through which empowerment affects organizational outcomes via a multi-dimensional model. Specifically, the paper suggests that empowerment climate (EC) is positively related to psychological empowerment (PE) and the effect of PE on the outcome variable of job satisfaction is mediated by justice perceptions and role clarity. Design/methodology/approach – In total, 765 employees at the executive level across 26 distinct groups in a large manufacturing firm participated in the survey. Multi-level analyses based on both hierarchical linear modeling and multi-level structural equation modeling techniques were utilized to test the hypotheses. Findings – This research demonstrated that EC significantly affected PE and that perceptions of justice and role clarity mediated the relationship between PE and job satisfaction. Additional analyses demonstrated that EC did not significantly affect organizational outcomes above and beyond PE, justice, and role clarity. Practical implications – The current study suggests that managers concerned with increasing employee perceptions of justice may be able to do so by increasing perceptions of employee empowerment. As only individual employee perceptions of empowerment related directly to organizational outcomes, this demonstrates the importance for managers to understand perceptions of employees. Originality/value – Exploring these mechanisms will strengthen the knowledge regarding how empowerment works to enhance organizational effectiveness. This will enable practitioners to better determine how and when empowerment will be most effective.