Deck 8: Organizational Culture at Terracycle

Question 1

Discuss the notion of empowerment in a business. Why is it important to empower managers?
How are employees at TerraCycle empowered?

Answer 1

Empowerment involves allowing people to do what they want to do rather than pushing them to do things in a certain way. Controls and constraints are eliminated and employees are enabled to determine their own way of achieving goals. Empowerment can be thought of as a pull strategy in which employees choose to accomplish tasks because they want to, not because they are linked to a particular reward system or influence technique. Research shows that employees who are empowered tend to be more productive and more satisfied as compared to employees who are not empowered. Moreover, empowered employees typically are more innovative and create better products and services. Employees at TerraCycle share a common vision of building a better world. Employees are expected to be flexible and willing to go in new directions, but have the freedom to determine exactly how goals will be accomplished. Albe Zakes, Director of Public Relations, notes for example, that while he has checks and balances in place, he routinely hands off tasks with little direction, allowing subordinates to take the lead in determining just how the task will be accomplished.

Question 2

Discuss why some managers might resist the idea of empowering subordinates. How can this type of mindset have a negative impact on the organization?
Why is empowerment especially important in organizations like TerraCycle?

Answer 2

Empowering employees implies giving up control and allowing others to make decisions as to how to achieve goals. Some managers resist empowering employees because they fear that by doing so, they will not receive recognition and credit for successes. Some managers also perceive that giving subordinates the power to make their own decisions could reduce their own ability to exercise power. However, studies show that these perceptions are misguided. In fact, those managers who do empower their employees typically experience greater effectiveness. Most students will probably agree that given the unpredictable, fast paced environment in which TerraCycle is operating empowering employees is especially important to the organization's success. Employees at TerraCycle must be ready to take on new tasks at a moment's notice - tasks that no involve significant controls and direction from superiors.

Question 3

What are the five core dimensions of empowerment?
Consider how these dimensions are incorporated at TerraCycle.

Answer 3

The five core dimensions of empowerment are self-efficacy or a sense of personal competence, self-determination or a sense of personal choice, personal consequence or a sense of having an impact, meaning or a sense of value in activity, and trust or a sense of security. Fostering an environment in which people develop each of these qualities can lead to higher individual performance and higher organizational performance. Most students will probably recognize that employees at TerraCycle display these qualities. There is a shared feeling of excitement about what the company is trying to accomplish and where it is going. Employees realize that they could potentially make more money elsewhere, but are committed to what they are doing and the sense of achievement and value it brings.

Question 4

What is the relationship between empowerment and delegation?
What are the advantages of delegating?