Psychological Empowerment, Uncertainty Tolerance, and Job Satisfaction

Introduction and Background

In the last two decades, China has witnessed dramatic changes in its economy. To stimulate growth, the government encouraged its people to establish businesses beginning in 1992. Unlike the business atmosphere of the past, where practices were dominated by large government-controlled enterprises, individuals were now allowed to set up private businesses. Growth of small businesses in China has been rapid: by 2006, the total number of small businesses accounted for 99.6% of all business organizations (Zhong, 2006). Small businesses play an important role in the expanding Chinese economy.

Despite the significance of small businesses in the Chinese economy, only limited research has been conducted on the management of these organizations. The present study makes a valuable contribution to the advancement of those organizations. It serves as a reminder to management that when implementing a new strategy, a thorough investigation of all aspects of the organization is vital for the success of that new direction.

Due to the large number of small businesses entering the Chinese economy, competition among them is intense. Therefore, most small businesses are eager to learn new methods to improve their organizations, including any new technology that will give them an advantage over their competitors. In recent years, China has witnessed the adoption of western management theory. Small businesses have been particularly eager to adopt these new philosophies and ideals.

The notion of empowerment and its benefits became familiar to Chinese businesses about a decade ago (Wang, 2004). Empowerment quickly earned popularity among small businesses, and many attempted to apply the strategy in their organizations. Sadly, only a handful reported positive outcomes after implementation, and many others saw a detrimental effect after delegating power to employees (Yan & Xie, 2005). Yan and Xie (2005) investigated this phenomenon and reported findings as a potential explanation for those failed projects. Organizations are becoming increasingly demanding of their employees, and desperately look for ways to get employees more involved in operations in order to improve overall organizational performance.

Small Chinese business organizations tend to copy popular management strategies indiscriminately, disregarding the fact that a majority of their workforce is risk- and responsibility-averse and may not be capable of making decisions under conditions of uncertainty. The current business environment requires employees to manage uncertainties and make quick decisions using sound judgment. Employees need to be highly driven and tolerant of uncertainty. The purpose of this research is to explore job satisfaction and its relationship to empowerment and tolerance for uncertainty.

Rationale, Purpose, and Significance

The rationale for this study is based on research indicating a need for academic inquiry into the connection between uncertainty and job satisfaction for employees working in an empowered environment. Companies that institute empowerment without regard to the risk and uncertainty characteristics of their employees risk lowering job satisfaction among those employees. This study will fill the gap in the literature that currently exists regarding empowerment in companies whose employees have a low tolerance for uncertainty — organizations that represent unsuccessful attempts to raise the satisfaction level of their employees.

The purpose of the study is to explore the relationship between organizational performance, employee job satisfaction, and empowerment. The empowered employee is an asset to the success of the organization. Businesses exist in a volatile environment, and the empowered employee is expected to have the ability to tolerate uncertainty. The proposition of the study is that as employees become more empowered, they gain access to far more responsibility and decision-making authority than they had in the past. However, because they are not accustomed to this level of uncertainty, many have a low tolerance for it and do not wish to become empowered.

The second proposition of this study is that high psychological empowerment in the workplace combined with a low tolerance for uncertainty leads to stress rather than satisfaction. Empowerment means being able to cope with uncertainty, but many employees are not prepared for this step. Therefore, empowerment carries negative consequences as well as positive ones.

This study will play an important role in helping organizations understand the impact of empowerment on their workforce. In the past, research has focused primarily on the positive aspects of employee empowerment, leaving many employers unaware that empowerment could also have negative consequences. This study will make organizations aware of both sides of the issue so that they can make informed decisions regarding the empowerment of their employees.

This study will also close a gap in knowledge regarding the impact of empowerment on uncertainty tolerance. Organizations can utilize this information to maximize employee satisfaction, reduce employee stress, and thereby improve workforce productivity. The findings will provide useful information in the strategic decision-making process.

This study uses survey methodology to explore its hypotheses and research questions. It employs the Psychological Empowerment Scale (Spreitzer, 1995), the Job Satisfaction Scale from the Minnesota Satisfaction Questionnaire (MSQ), and the Tolerance of Uncertainty Scale (Clampitt & Williams, 2000). These three scales were administered to Chinese employees and compared in relation to the intended hypotheses.

This study focuses on three variables. Employee empowerment serves as the independent variable. Job satisfaction and uncertainty tolerance serve as the two moderating variables. Theory currently holds that higher employee empowerment will lead to a higher level of job satisfaction. This study investigates the relationships between these variables and their impact on the organization. In today's increasingly competitive market, companies need employees who can take initiative, embrace risk, stimulate innovation, and cope with high levels of uncertainty. This study will aid companies in understanding how to develop these characteristics in their employees.

Hypotheses and Research Questions

This study focuses on five hypotheses as they relate to the background information presented.

Hypothesis 1: Higher levels of empowerment will have a significant correlation with job satisfaction.
Null Hypothesis 1: Higher levels of empowerment will not have a significant correlation with job satisfaction.

Hypothesis 2: Employees with a high tolerance for uncertainty will demonstrate a significant correlation that favors high empowerment levels on the job.
Null Hypothesis 2: Employees with a high tolerance for uncertainty will not demonstrate a significant correlation that favors high empowerment levels on the job.

Hypothesis 3: Employees with a higher tolerance for uncertainty will demonstrate a significant correlation with higher job satisfaction.
Null Hypothesis 3: Employees with a higher tolerance for uncertainty will not demonstrate a significant correlation with higher job satisfaction.

Hypothesis 4: Lower tolerance for uncertainty will demonstrate a significant correlation with lower job satisfaction.
Null Hypothesis 4: Lower tolerance for uncertainty will not demonstrate a significant correlation with lower job satisfaction.

Hypothesis 5: Employees who demonstrate a high tolerance for uncertainty and high levels of psychological empowerment on the job will demonstrate a significantly higher level of job satisfaction than those with a low tolerance for uncertainty and/or low levels of psychological empowerment.
Null Hypothesis 5: Employees who demonstrate a high tolerance for uncertainty and high levels of psychological empowerment on the job will not demonstrate a significantly higher level of job satisfaction than those with a low tolerance for uncertainty and/or low levels of psychological empowerment.

These hypotheses allow the researcher to explore the relationship between psychological empowerment, uncertainty tolerance, and job satisfaction. In addition, the research will seek to answer the following questions:

Exploring the answers to these questions will help advance our understanding of the relationship among empowerment, uncertainty tolerance, and job satisfaction.

Conclusion

For many years, empowerment has been the buzzword of production in western cultures. However, there are many instances where it does not seem to work — and in some cases it can have a negative impact rather than the expected positive one. Managers are continually in search of ways to empower their employees and tap into their innate talents, but as the research demonstrates, this does not always succeed.

Recent managerial trends no longer support empowerment as an ultimate solution. Empowerment is now viewed with more realistic expectations than it was in the past. The contemporary managerial mindset holds that empowerment must be tempered with other factors unique to each organization (Forrester, 2000). Managers no longer promote the wholesale adoption of empowerment; they recognize that it must be adapted to organizational needs (Forrester, 2000).

The most important finding from the literature is that empowerment cannot simply be mandated (Forrester, 2000). One cannot simply declare that workers will be empowered from a certain date forward. Empowerment requires a change in attitude from both managers and employees. It is a cultural construct of the organization and cannot exist in policy alone. Developing an empowered workplace requires a cultural shift, and some employees may be resistant to those shifts.

Literature that examines the connection between empowerment, job satisfaction, and uncertainty is sparse. No studies could be found that examined all three factors together in Chinese businesses. Studies were found that linked two of these factors, but none examined all three in the same study. This indicates a clear knowledge gap that the present study is designed to address.

One of the challenges identified in the course of the literature review is the difficulty in measuring empowerment, job satisfaction, uncertainty, and the personality factors that affect these variables. All examine an emotional state in the employee and are inherently subjective. Survey responses regarding these factors may be influenced by the participant's mood at the time of completion. The degree of empowerment, job satisfaction, or uncertainty expressed may or may not accurately reflect the actual work environment. The key to overcoming this challenge lies in the selection of valid and reliable survey instruments — a criterion met by the three scales employed in this study, each of which has a demonstrated record of validity and reliability.

As the relevant academic research makes clear, policies and protocols do not by themselves create an empowered workplace. Empowerment, job satisfaction, and uncertainty tolerance are all products of organizational and national culture. Empowerment is a western concept, and many Chinese businesses wish to adopt it for the benefits it promises. However, Chinese businesses cannot adopt a westernized concept without addressing a culture that has historically promoted authoritarian, hierarchical business practices. This study will play an important role in analyzing the success of Chinese businesses in adopting empowerment and creating an organizational culture that supports it.

Chinese business practices are in a state of transition as organizations adjust to a rapidly expanding economy. This study will explore the attitudes of Chinese businesses in relation to their ability to create an empowered workplace and the effects of that workplace on job satisfaction. Uncertainty is expected to be high in Chinese businesses, as many are undergoing significant change in response to a rapidly shifting economic environment. This study will help businesses understand both the negative and positive effects of empowerment so that they can adjust their organizational environments for maximum productivity and satisfaction.

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