Leaving Cert Business Human Resource Management: Discuss the benefits and risks o

Discuss the benefits and risks of empowering employees within a business. - Leaving Cert Business - Question 1(A) - 2012

Question 1(A)

Discuss the benefits and risks of empowering employees within a business.

Worked Solution & Example Answer:Discuss the benefits and risks of empowering employees within a business. - Leaving Cert Business - Question 1(A) - 2012

Step 1

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Answer

Empowering employees within a business has several significant benefits:

Enhanced Decision-Making and Control: Employees who are empowered utilize their skills and knowledge to make decisions that benefit both the business and its clients. This results in quicker decision-making and more responsive service.
Increased Responsiveness: Empowered employees are more likely to respond effectively to customer needs. They can identify issues and propose solutions, leading to higher customer satisfaction levels.
Improved Job Satisfaction: When employees feel valued and trusted, their job satisfaction increases. This empowerment can lead to greater loyalty and morale among staff, as they believe their contributions are meaningful.
Better Promotion Opportunities: Employees who take initiative and demonstrate their capabilities are often better positioned for promotion, leading to a more skilled workforce.
Strategic Focus for Management: With employees handling decision-making at various levels, management can focus on strategic planning and long-term goals.

Step 2

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Answer

While there are many benefits, there are also risks associated with empowering employees:

Inadequate Training: If empowerment is implemented without appropriate training, employees may make mistakes that can negatively impact the business. Proper training is crucial to ensure that employees are well-prepared for their new responsibilities.
Employee Discontent: Employees might feel overwhelmed by additional responsibilities, particularly if they are not adequately trained. This can lead to increased stress and lower morale.
Lack of Control: Empowering employees can lead to a decrease in day-to-day supervision, which might result in some employees misusing their freedom. This can create situations where they take unnecessary risks or fail to follow procedures.
Potential for Conflict: As management hands over authority to employees, there might be conflicts regarding the balance of responsibility. Managers may feel a loss of control, leading to tensions within teams.