Employee Empowerment Effects on a Company & Penetration Pricing

Abstract

We are going to use Security Business Bancorp in San Diego to evaluate the use of employee empowerment to address certain organizational issues and drive profitability. The company emphasizes on greater decision making and employee empowerment to drive performance (Press Release, 2011). In the area of penetration pricing, we will analyze the advantages that the Apple iPad has benefited from the market by introducing the iPad at a record price in order to capitalize the market.

Employee Empowerment

Employee empowerment is defined as giving employees the power to make decisions. It can also be referred to employee involvement in organizational procedures to enhance employee commitment and achievement of organizational growth. Employee empowerment improves employee feelings of self worth through identifying conditions that promote powerlessness and removing organizational practices that hinder growth of the employee and the company as a whole (Ping, 2010).

The issues that led to development and use of the theory are high employee turnover and customer service delivery. Etebarian et al (2011) provide that empowerment is essential for an organization to achieve success and growth and also increases productivity. The theory addresses job satisfaction since employees are important assets to a company and determine whether a company will be successful or not, highly motivated employees produce high outputs while low motivated workers drag company growth downwards. By improving job satisfaction, organizations are able to reduce employee turnover thus retaining desired workforce.

Another issue addressed by employee empowerment is the delivery of services to customers. The retention of customers is dependent on quality of service offered which in turn depend on service employees provide. When an employee is not committed and not satisfied within the organization he or she is likely to offer poor service delivery thus reducing customer retention. Ping...