The impact of structural empowerment on individual well-being and performance: Taking agent preferences, self-efficacy and operational constraints into account

Abstract

We integrate psychological and socio-structural perspectives on empowerment by examining: a) the impact of actual structural empowerment initiatives (as opposed to perceptions of such empowering acts) aimed at enhancing employee influence over which tasks to perform (as opposed to how to perform them) on employee well-being and performance, b) the degree to which self-efficacy mediates these effects, and c) the extent to which, by applying such initiatives more selectively, performance-related empowerment effects may be amplified. Results of a simulation-based experiment indicate that while granting decision latitude over which tasks to perform has beneficial effects on both individual performance and well-being, self-efficacy partially mediates the effects only on the latter. Results also indicate that the direct performance-related effects of such interventions may be further increased without any significant decline in employee well-being to the extent that such structural empowerment is applied more selectively and offered as a performance-based incentive.