Empowerment, expectations, and the psychological contract—managing the dilemmas and gaining the advantages

Abstract

Empowerment, participation, self-managing work teams, employee ownership and profit sharing are but a few of the many current forms of employee involvement in workplace decision making. Few theorists or practicing managers question the concept of employee involvement or its potential benefits. However, most employers realize that the degree of involvement varies with the organizational situation, the persons involved and the nature of work. Empowerment creates a dilemma. Empowering employees results in creating beliefs about entitlements that must be unfulfilled eventually. Unfulfilled beliefs about entitlements may constitute a breach of the psychological contract between employer and employee. A breach of the psychological contract may result in employee behavior that is counterproductive in terms of organizational goals.