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Part 04 – The Empowerment of People

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Major Purposes of Part Four

Part Four focuses on three important subjects—

leadership authority, the empowerment of people, and

the quality imperative.

Part Four Objectives

After completing Part Four, your students should be able

to better understand:

• The nature of servant leadership;

• The role of participative leadership;

• Formal authority and the use of power;

• The concept of psychological size;

• The quality movement; and

• Practical tips for developing a high performance workplace.

PART FOUR—The Empowerment of People

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NOTES AND ANECDOTES

Empowerment Facilitates Change

Change is an inevitable fact of life in the workplace as new people, processes, and products come

and go. Some changes are caused by forces outside the organization; some originate from within.

The ability to adapt to change is a key characteristic of successful groups. How do they do it?

They recognize that the outcome of a change often depends on how it is introduced and who is

involved. Whenever possible, people are encouraged to participate in decisions that will affect

them. This tends to reduce resistance and resentment. The following, a classic study of

employees in a clothing factory, illustrates the point:

Experimenters divided employees into four groups that differed in terms of how a change in

work group procedures was introduced. Group I was allowed no participation; the employees

were told about the new work procedures, but were given no voice in matters. In Group II,

employee representatives met and discussed the change with management. In Groups III and

IV, all workers were encouraged to participate actively with management in implementing the

change.

The reaction of Group I was very negative. Production decreased immediately

by one-third, expressions of hostility and resentment surfaced, and seventeen

percent of the group quit within forty days. Group II, by allowing participation

through representatives, achieved better results, but the response was not as

positive as that of Groups III and IV. As a result of allowing participation by all

of the workers involved, there was no hostility in Groups III and IV, and none of

the employees quit. Production in these groups dropped initially, but quickly

rose to a level higher than before.

Encouraging broad employee participation was clearly the best method for

overcoming resistance to change, a finding that has been verified by other

studies.

NOTES AND ANECDOTES

Technological advances, global economies, cultural diversity, and speed of change are

important forces that are helping to reshape the American workplace. While all of these may

not be present in any one work environment, some shifting from the “traditional” to the “new”

is occurring in most workplaces. Areas of change include structure, focus, quality, standards,

and leadership. See Table 4.1.

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TABLE 4.1: THE CHANGING WORKPLACE

AREAS OF CHANGE TRADITIONAL NEW

WORKPLACE WORKPLACE

Structure Functional Departments Work Teams

Focus Cost-Focused Customer-Focused

Quality Inspection for Errors Continuous Improvement

Standards Internal Controls World Class Requirements

Leadership Autocratic Democratic

Students can evaluate their current (or former) workplaces regarding structure, focus, quality,

standards and leadership. Are conditions more traditional or new? What policies and actions

do they advise?

NOTES AND ANECDOTES

Empowerment Success Stories

When people come together to accomplish something, certain questions are on their minds.

They want to know:

• What is expected of us?

• Why is this important?

• Who is the work for?

• How will we work together?

• When do the tasks need to be done?

• What constitutes great performance?

• How will we be rewarded?

The effective leader begins by clarifying goals and roles. The task of the leader is to focus and

energize people, inspire creativity, and get the best ideas from everybody.

Part 04 – The Empowerment of People

NOTES AND ANECDOTES

The following are reports on three groups using empowerment efforts to improve

performance results in a steel company. Each group was asked to: (1) identify an operational

bottleneck or problem adversely affecting the quality of work or the quality of work life in the

company; (2) analyze the causes and consequences of the problem; and (3) make

recommendations to solve the problem, including expected costs and benefits.

The “Safety Coil” Group. This example focuses on teamwork among employees of the steel

coil repair department. They identified a safety hazard that had resulted in hand and arm

injuries and even loss of life. This problem had been an industry-wide concern for all coil-

rolling operations. When coiling steel of uneven thickness, the coil must remain round. The

traditional practice had been to insert small slips of paper while winding the coil to keep it

symmetrical. Because the coil spins so fast, centrifugal force creates danger for the worker

inserting the paper slips. After studying the problem, the group offered a three-part solution:

• A safety stick was devised with a slit at the end to hold the small pieces of paper. The team

discovered that the paper slips could be inserted into the spinning coil with this stick, protecting the

worker from injury.

• A training manual was developed that not only included the coil-stick solution, but also addressed

other health and safety problems in the steel coil repair department.

• The group used the manual to present a training program on health and safety procedures to

all workers in the department.

The benefits were substantial: (1) no lost-time accidents have occurred in the steel coil

repair department since the group completed its project twenty years ago; (2) the group

presented its coil stick and training manual to the National Association of Steel Manufacturers

Plant Safety Conference, and both are widely used in industry today; and (3) self-confidence

and group pride were created on the team.

The “Wooden Pallets” Group. This example focuses on teamwork among supervisors from

the manufacturing, maintenance, scheduling, and shipping departments. The problem identified

by the group was loss of time and material in building wooden pallets to store steel sheets and

coils between manufacturing and shipping. The practice had been to build a pallet to fit each

new load, discard it after use, and pay to have the scrap wood hauled away. A study of the

problem by the group resulted in the following recommendations:

• Build storage bins to fit common sizes of four–by-fours and two-by-fours used to make

pallets.

• Locate these bins in a convenient area.

• Store lumber in the bins until needed.

• Disassemble used pallets and return the wood to the appropriate bins for reuse.

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The results were significant: (1) the storage bins saved employees the time and effort of

looking for wood and cutting it to size; (2) reusing the wood resulted in significant savings in

labor, materials, and haul-away costs; and (3) the group project created a sense of teamwork

and pride that carried over to other activities on the job.

The “New Suppliers” Group. This example focuses on teamwork among managers from

sales, manufacturing, engineering, finance, and purchasing. They identified elements critical to

the success of the company: (1) purchasing second-grade and partially damaged steel; (2)

processing this material to meet customer orders for flat steel and steel coils; and (3) delivering

the final product. The problem the group identified was the need to ensure a dependable supply

of raw material at a reasonable cost. Although current suppliers had been satisfactory, the

company was in a vulnerable position without additional sources of supply. As in all recycling

industries, the lifeline begins with the purchase of raw material. The solution was as follows:

• Four additional suppliers were identified.

• The group invited these suppliers to visit the company to learn about its people and products.

• They picked up the suppliers in vans, gave them a tour of the plant and lunch in the company

boardroom, and presented the company’s history and philosophy.

• Members of the group followed up on this effort with personal calls.

What were the results? (1) Three of the four suppliers became dependable new sources of

raw material, thereby increasing the financial security of the company; (2) substantial cost

saving resulted from being able to buy raw material from several sources; (3) top management

reinforced a “can do” attitude among themselves; and (4) the enthusiasm and success of the

management team invigorated the rest of the work force.

NOTES AND ANECDOTES

What is Quality?

The most widely accepted definition of what constitutes quality exists in the criteria for the Malcolm

Baldrige National Quality Award. This annual award, given by the U.S. Commerce Department since

1988, recognizes U.S. companies that excel in quality achievement. To better understand ways to

achieve quality, examine the concepts that serve as the basic criteria for this award.

• Quality is defined by the customer.

• Senior leadership creates clear quality values and builds these values into the way the organization

operates.

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• Quality excellence derives from having well-designed and well-executed systems and processes.

• Continuous quality improvement is part of the management of all systems and processes.

• Goals are developed, as well as strategic and operational plans, to achieve quality leadership.

• Shortening the response time of all operations and processes of the organization is part of the

quality-improvement effort.

• Operations and decisions of the organization are based on facts and data.

• All employees are suitably trained and involved in quality activities.

• Design quality and defect and error prevention are major elements of the quality system.

• Quality requirements are communicated to suppliers and the organization works to elevate supplier

quality performance.

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NOTES AND ANECDOTES

Improving Performance Across Companies

Although bartering and trading can be acceptable when the work performed is simple and occurs at a

discrete point in time, the best approach is to look beyond an isolated exchange and focus instead on

building a long-term relationship. Partners who have mutual trust do not feel the need to check up on

each other. Also, in many organizations, one’s customers are also one’s suppliers as well. Building a

solid trust-based relationship pays dividends to both organizations, as the following example

shows:

After years of relying on a weekly exchange of price incentives and shelf space, two consumer giants, Procter &

Gamble and Wal-Mart, began to develop a trust-based relationship, sharing up-to-the-minute sales information,

long-range buying plans, and current inventory figures. Eliminating a sea of promotional incentives allowed

Procter & Gamble to provide the “everyday low prices” Wal-Mart required, while letting each company achieve a

reasonable profit. At the same time, Wal-Mart agreed to pay invoices as presented and settle accounts at the end

of the year.

Both companies have enjoyed substantial benefits with this new way of working: (1) Conflicts

can be avoided and resolved more easily; (2) communication is more open, timely, and accurate; (3)

Wal-Mart inventories have been cut from 30 days to 2 days, resulting in reduced cost; and (4) Procter &

Gamble reports $500 million in annual savings as a result of the new level of partnership and trust.

Source: Michael Treacy and Fredrik D. Wierseman, The Discipline of Market Leaders: Choose Your

Customers, Narrow Your Focus, Dominate Your Market (Reading, MA: Addison Wesley, l997), 52–

58.

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NOTES AND ANECDOTES

There are two types of benefits of employee involvement and the team concept; end product

benefits and in-process benefits.

End product benefits include improved quality of work and improved profits. It is common for

a quality improvement team to identify and make recommendations to solve between two and six

problems a year, and experience has shown that management adopts 80 percent of these suggestions.

Ninety percent of the recommendations cost little or nothing to implement, and the entire expense of the

program can usually be funded from existing operating budgets. The financial return on employee

involvement efforts can be truly impressive, as the ratio of cost to benefit is usually from 1:3 to 1:6.

In-process benefits from employee involvement are less tangible, yet equally important. These

include better communication and teamwork among co-workers, improved management skills, and

greater employee loyalty. Both the individual and the organization profit as quality improvement teams

help accomplish the following in-process goals:

▪ Raise employee morale. Eighty–four percent of America’s workers say they would work

harder and do a better quality job if they were more involved in decisions affecting them.

Employee involvement allows people to participate in the decision-making process, and in

doing so, find greater satisfaction in their work lives.

▪ Build teamwork. Teamwork results when employees form a closely knit group with a unified

purpose to which everyone is dedicated. Quality improvement teams help accomplish this, as

employees feel they are an important part of the success of the group. This feeling of belonging

and being needed not only helps to satisfy social needs but also encourages employees to accept

responsibility for the activities of the group.

▪ Increase loyalty. Avoidable turnover represents an unnecessary and costly drain on

productivity and profits. A major cause of turnover is lack of loyalty to job, co-workers, and

company. Quality improvement teams help build pride in the work, relationships among co-

workers, and identification with the organization, so that people do not want to change jobs.

▪ Develop leadership ability. Team leaders develop important management skills, such as

motivation, communication, organization, and problem solving, while coordinating the

activities of the quality improvement team. These skills can be applied in many areas of the

typical manager’s job.

▪ Maximize employee potential. Participation in the decision-making process stimulates

employee initiative, creativity, and self-esteem and creates a positive climate for growth and

development. When employees are given the opportunity to suggest and question rather than

being expected to follow rigid instructions, they usually develop into a mature and responsible

work force. Employee involvement to improve quality is an effective vehicle for furthering the

personal and professional development of employees.

In summary, employee involvement provides an effective means for people to participate in the

problem-solving and decision-making process, and this participation is valuable for both the

individual and the organization. Improving quality through member empowerment satisfies two

basic human needs—the need for personal achievement and the need to belong to something great.

This promotes a sense of personal growth as skills are developed, and a sense of contribution as the

employee supports important organizational goals that transcend the individual. Although

employee involvement is not the only way to achieve these aims, it has proven to be a uniquely

simple and effective tool for building community and achieving team excellence.

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EXERCISE 4.1:

SEEING IS BELIEVING: LOST AT SEA

This exercise shows the value of group participation in problem solving and decision making.

The first task is to solve a problem as an individual; the second is to use the method of group

consensus to solve the same problem. Individual results will be compared with group

performance.

Directions

Carry out the following instructions to complete the exercise.

Step One. Read the “Lost at Sea” problem and solve it as an individual. Try to imagine

yourself in the situation. No talking or sharing answers with others is allowed at this point.

Work at your own pace to complete the task.

Lost at Sea

You are adrift on a private boat in the South Pacific. As a consequence of a fire of

unknown origin, much of the boat and its contents have been destroyed. The boat is now

slowly sinking. Your location is unclear because of the destruction of critical navigational

equipment and because you and the crew were distracted trying to bring the fire under control.

Your best estimate is that you are approximately one thousand miles south-southwest of the

nearest land.

Below is a list of 15 items left intact and undamaged after the fire. In addition to these

articles, you have oars and a serviceable rubber life raft large enough to carry yourself, the

crew, and all the items listed. The total contents of all survivors’ pockets are a package of

cigarettes, several books of matches, and five one-dollar bills.

Your task is to rank the 15 items in terms of their importance to your survival. Place

the number 1 by the most important item, number 2 by the second most important, and so on

through number 15, the least important.

Individual Worksheet

________ Sextant

________ Shaving mirror

________ Five-gallon can of water

________ Mosquito netting

________ One case of U.S. Army C rations

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________ Maps of the Pacific Ocean

________ Seat cushion (flotation device approved by the U.S. Coast Guard)

________ Two-gallon can of oil-gas mixture

________ Shark repellant

_______ Small transistor radio

_______ Twenty square feet of opaque plastic

_______ One quart of 160-proof Puerto Rican rum

_______ Fifteen feet of nylon rope

_______ Two boxes of chocolate bars

_______ Fishing kit

Step Two. Now that you have considered the problem as an individual, join in a group of four

to eight people and decide on a group solution to the same problem. The group should use the

method of group consensus. This means that the ranking for each of the 15 survival items must

be agreed on by each member before it becomes a part of the group decision. With group

consensus, a decision may not be exactly what you personally would prefer, but it should be

one that you can live with.

Consensus is sometimes difficult to reach, particularly when people are emotionally

involved. Therefore, not every ranking will meet with everyone’s complete approval. There

should be, however, a general feeling of acceptance among all members before a decision is

finalized.

Take the time to consider the ideas of all members. Listen in order to understand the

views of others; make your own views known; and be willing to compromise in arriving at a

solution. Try, as a group, to make each ranking one with which all members can at least

partially agree. The following are guidelines to use in reaching group consensus:

• Prepare your own position as thoroughly as possible prior to group discussion.

• View differences of opinion as helpful rather than as a hindrance in the problem-

solving process. Remember, others may know something you do not.

• Avoid arguing for your own individual judgments; approach the task on the basis of

logic.

• Do not change your mind only to avoid conflict, or just to reach agreement. Only

support solutions with which you are personally able to agree, at least partially.

Withstand pressured to yield until you are sure others understand your views.

• Avoid conflict-reducing techniques such as voting, averaging, or trading to reach

decisions.

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• When a stalemate is met, do not take the approach, “Someone must win, and someone

must lose.” Instead, look for the next most acceptable alternative for all members.

The group should take as much time as needed to reach decisions. Put the group

consensus ranking on the list below.

Group worksheet

________ Sextant

________ Shaving mirror

________ Five-gallon can of water

________ Mosquito netting

________ One case of U.S. Army C rations

________ Maps of the Pacific Ocean

________ Seat cushion (flotation device approved by the U.S. Coast Guard)

________ Two-gallon can of oil-gas mixture

________ Shark repellant

_______ Small transistor radio

_______ Twenty square feet of opaque plastic

_______ One quart of 160-proof Puerto Rican rum

_______ Fifteen feet of nylon rope

_______ Two boxes of chocolate bars

_______ Fishing kit

LOST AT SEA ANSWER KEY

AND RATIONALE

Score individual and group answers according to the following key:

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According to experts, the supplies most needed when lost at sea are articles to attract

attention and to aid survival until rescuers arrive. Articles for navigation are of little

importance. Even if a small life raft were capable of reaching land, it would be impossible to

store enough food and water to survive during that period of time. Therefore, of primary

importance are the shaving mirror and two-gallon can of oil-gas mixture. These items could be

used in signaling for an air-sea rescue. Of secondary importance are items such as water and

food, e.g., the case of Army C rations. A brief rationale is provided for the ranking of each

item. These explanations do not represent all of the potential uses for the items, but the

primary importance of each.

15. Sextant: Without tables and chronometer, the sextant is relatively useless.

1. Shaving mirror: This is a critical device in signaling for an air-sea rescue.

3. Five-gallon can of water: Water is necessary to replenish loss by perspiring, etc.

14. Mosquito netting: No mosquitoes live in the mid-Pacific.

4. One case of U.S. Army C rations: C rations meet the need for basic food intake.

13. Maps of the Pacific Ocean: Maps are worthless without additional navigational

equipment. What matters is not where you are, but where the rescuers are.

9. Floating seat cushion: If someone fell overboard, the cushion could function as a life

preserver.

2. Two-gallon can of oil-gas mixture: This would be critical in signaling for rescue. The

oil-gas mixture will float on the water and could be ignited with a dollar bill and a match

(outside of the raft).

12. Small transistor radio: A transistor radio is of little value, since there is no transmitter.

10. Shark repellent: The value is life protection.

5. Twenty square feet of opaque plastic: This can be used to collect rainwater and provide

shelter from the elements.

11. One quart of 160-proof Puerto Rican rum: Containing 80 percent alcohol, this could be

helpful as a potential antiseptic for any injuries incurred. Otherwise, rum would be of

little value, as it will cause dehydration if ingested.

8. Fifteen feet of nylon rope: This could be used to prevent people and equipment from

falling overboard.

6. Two boxes of chocolate bars: This would be valuable as a reserve food supply.

7. Fishing kit: The fishing kit is ranked lower than the candy bars because “a bird in the

hand is worth two in the bush.” There is no assurance that you will catch any fish.

Obtain the score for each item by subtracting your answer from the correct answer. For

example, if you ranked one case of U.S. Army C rations as number 1, the score would be 4 – 1

= 3. If you had it as number 10, the score would be 10 – 4 = 6. If you had it as number 4, the

score would be 4 – 4 = 0, the best score possible. Do not worry about positive or negative

differences; it is the absolute difference that counts. After you have scored all 15 items, add up

the individual scores and place the total here: _______. After the group consensus answers

have been scored, place the total here: _______.

After all individual scores have been obtained, complete the following:

The highest individual score in the group was: ________

The lowest individual score in the group was: _________

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The average individual score in the group was: _______

The group consensus score was: ________

DISCUSSION

Review the exercise by considering the following questions:

1. Which was better—the group consensus solution, or the average individual solution?

Which was better—the group consensus solution, or the best individual solution? The

group consensus solution will usually surpass both the average individual solution and

the best individual solution.

2. Do you think the group would have done better if the participants had more

knowledge about sea lore? As a rule, the individual participants know about the problem,

the more likely it is that group consensus solutions will be superior to individual

solutions.

3. Which solution would the group be more willing to implement—the best individual

solution, or the group consensus solution? How important is follow-through in the

problem-solving process?

4. Were members of the group open to expressing opinions; was respect shown when

others spoke?

5. Did participants play helpful or harmful group membership roles? Discuss.

6. Could problems in your work setting be solved through group consensus? Would this

improve the quality of work and the quality of work life?

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NOTES AND ANECDOTES:COMMUNICATION DISTORTION

Messages can be altered as they pass from one person to another, as this series of memorandums shows.

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Ф APPLICATION

THE BOTTLENECK: QUALITY IMPROVEMENT THROUGH TEAMWORK—THE TEN-

STEP PROCESS

The following is a ten-step process to improve the quality of work and the quality of work life by

making the best use of the people, equipment, materials, and money available.

START

Current

Conditions

1. Assemble a

problem solving

team.

2. Brainstorm

quality of work or

quality of work

life problems and

bottlenecks

3. Select a problem.

7. Choose the best

solution.

8. Avoid ruts. Be

creative.

6. Use Cause and

Effect analysis.

5. Assess the

problem. Gather

information,

display data, and

ask key questions.

4. Define the

problem.

9. Prepare, present,

and implement

solution; include

costs and benefits.

10. Follow up and

evaluate.

Lasting

Solution

End

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Step 1 Assemble a quality improvement team. Note: Kurt Lewin discussed how groups

Step 2 Use Brainstorming to identify problems or bottlenecks that adversely affect the quality

Step 3 Select a problem for the group to solve. First, apply the 80-20 rule: Eighty percent of

Step 4 Define the problem in a short phrase or sentence. State the problem simply and clearly.

Examples are:

Step 5 Assess the problem by gathering facts, displaying data, and asking key questions.

Answer these types of questions:

Why is the present situation a bottleneck or problem?

What is causing the problem?

Where is the problem located?

When did the problem begin?

Who is causing the problem and who can help solve the problem?

How should the problem be solved?

Also question the history and traditions behind present conditions: Are the forms,

materials, and efficiency of operation the best possible for morale and productivity?

Step 6 Use cause and effect analysis to help solve the problem. The cause-and-effect diagram

There are four steps in the construction and use of a cause-and-effect diagram.

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First. Write the problem in a phrase or sentence and draw an arrow pointing to it. See

Figure 4.3

Second. Use brainstorming to identify specific causes of the problem. Specific causes

are indicated on branches of the four M‘s—Members, Machines, Methods, and

Materials. It may be helpful to use the 4P’S—People, Procedures, Policies, and Plant.

See Figure 4.4.

Third. Use group discussion to select and circle the most likely causes of the problem

(the critical few). Each person identifies all causes considered important (no limit), and

the number received for each is counted. Those causes cited most often are circled.

Usually two to four causes will surface as the most important.

Fourth. Use observation, interviews, and tests to verify that the causes identified in

step three are actually creating the problem. If they are not, select the next most likely

causes and conduct verification for these.

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Figure 4.2: CAUSE AND EFFECT — FISH BONE ANALYSIS FOR PROBLEM SOLVING