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THE MYTH OF EMPOWERMENT:WORK ORGANISATION,HIERARCHY AND EMPLOYEE
AUTONOMY IN CONTEMPORARYAUSTRALIAN WORKPLACES
Department of ManagementWorking Paper in Human Resource Management &Industrial RelationsThe University of Melbourne
Number 4
Bill HarleyDepartment of ManagementThe University of MelbourneParkville Victoria 3052
AUSTRALIA
Tel: 6 1 3 9344 4481
E-mail: [email protected] melb.edu.au
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THE MYTH OF EMPOWERMENT: WORK ORGANISATION, HIERARCHY
AND EMPLOYEE AUTONOMY IN CONTEMPORARY AUSTRALIAN
WORKPLACES
Abstract
The aim of this paper is to assess the validity of the empowerment thesis: the belief
that new forms of work organisation are overturning traditional managerial
structures and returning control to employees. Specifically, the project seeks to
explore the role of empowering forms of work organisation (in particular Total
Quality Management, team-based work and consultative committees) and of
occupational hierarchies, respectively, in influencing levels of employee autonomy.
Data from the 1995 Australian Workplace Industrial Relations Survey (AWIRS95) are
used to construct quantitative indicators of empowering forms of work organisation,
hierarchy and employee autonomy. Associations between the variables are measured.The analysis shows no association between empowerment and employee autonomy.
There are, however, clear relationships between employees positions within
occupational hierarchies and their levels of control over their work. Therefore, the
empowerment thesis is rejected. A provisional explanation for the failure of
empowerment to enhance employee autonomy can be found in the fact that
organisational power resides primarily in organisational structures. Contrary to
claims of the emergence of the post-bureaucratic organisation, hierarchical
structures remain central to the majority of contemporary organisations, and the
impact of other changes to work organisation must be understood in this context.
Introduction1
The aim of this paper is to assess the validity of the empowerment thesis: the belief
that new forms of work organisation are overturning traditional managerial structures
and returning control to employees. Specifically, the project seeks to explore the role
of empowering forms of work organisation (in particular Total Quality Management,
team-based work and consultative committees) and of occupational hierarchies,
respectively, in influencing levels of employee autonomy.
As a means to do so data from the 1995 Australian Workplace Industrial Relations
Survey (AWIRS95), which surveyed around 20,000 employees and 2000 workplaces,
are analysed. Utilising quantitative indicators derived from the AWIRS95 datasets a
series of statistical analyses are carried out and associations between work
organisation, hierarchy and autonomy measured. On the basis of this analysis, it is
possible to assess central claims made by advocates and critics of the empowerment
thesis in the light of reliable statistical data.
The paper is divided into three main parts. The first part seeks to define the concept of
empowerment, before briefly outlining the claims of its advocates and critics. On the
basis of this discussion a research agenda for the rest of the paper is specified. In thesecond part of the paper, the operationalisation of key concepts and the construction of
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variables are explained and the data analysis is presented. The paper concludes with
discussion of the theoretical and practical implications of the findings.
The Empowerment Thesis and its Critics
The concept of empowerment is central to contemporary management discourse. Ifpost-Fordism and flexibility were the language of the 1980s, then surely their
position has been usurped in the 1990s by empowerment. Management periodicals
and textbooks published since 1990 are replete with references to the capacity of
empowerment to maximise the potential of people and organisations and thus to
contribute to organisational success (see for example: Slater and Bennis 1990; Covey
1994; Foy 1994; Gage 1994; Noe et al1994: 28; Anthony et al1996: 92; and Fisher et
al1996: 64).
Advocates of empowerment tend to promote it with considerable fervour. A typical
example is Coveys claim that
When deeply understood and internalised by both executive management and
the workforce, empowermentwill unleash the synergistic, creative energy of
everyone in the organisation. Existing walls and boundaries will fall and fear
in the workplace will disappear. The resulting quality in processes and
products will show remarkable improvement (1994: 8).
This kind of language is hardly new. Most of the claims made for empowerment are
difficult to distinguish from those made for flexibility and post-Fordism just a few
years ago (see Mathews [1989: 1] for a similarly enthusiastic account of the virtues of
post-Fordist production).
In particular, advocates of empowerment present it as having the potential to generate
the kind of win-win outcome beloved of unitarists. That is, while improving
organisational performance and contributing to the bottom-line, it simultaneously (and
necessarily) leads to improvements in the experience of work for employees.
A further similarity between empowerment and its predecessors is a lack of precision
in defining the concept and an associated lack of concern with empirical analysis of
the presence, nature or outcomes of the putative phenomenon. According to
Cunningham et al most accounts on the topic have tended to view empowermentfrom an uncritical and somewhat superficial perspective and to place it within an
essentially unitarist management framework (1996: 144).
Neither the fervour of its supporters or the lack of substantial critical analysis is
surprising. Indeed, as Ramsay (1996) notes, these characteristics are more or less
defining features of most managerial innovations. Nonetheless, in view of the impact
which emergent phenomena such as empowerment appear to have on managerial
discourse and practice, this lack of social scientific scrutiny is a matter of some
concern.
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What is Empowerment?
A reading of the literature suggests two general ways of conceptualising
empowerment. Firstly, there are conceptualisations that present the phenomenon in
very simple, general and commonsense terms. Examples of this kind include: a
redistribution or devolution of decision-making power to those who do not currentlyhave it (Cunningham et al1996: 144); Giving employees the power and authority to
make decisions (Anthony et al 1996: 92); empowerment is simply gaining the
power to make your voice heard, to contribute to plans and decisions that affect you
(Foy 1994: 5); and empowered employees [are]employees with a feeling of
involvement in the results of their efforts (Fisher et al1996: 64). These definitions
tell us little of how empowerment takes place, or of where it fits within broader
patterns of work organisation or management practice. They could easily describe any
of the forms of employee involvement which have existed during the twentieth
century.
The second way in which empowerment is conceptualised is rather grander. In this
version, it is conceived of as an integral part of a shift away from management and
towards leadership as the fundamental organisational principle. This
conceptualisation is of empowerment as something qualitatively different from earlier
approaches to participation, as part of a significant paradigm shift (Clegg et al1996)
in which old ways of coordinating production are replaced by new ones in keeping
with the emergent post-modern epoch.
For example, Clegg et al assert that the leadership paradigm has its roots in
feminism and argue that
the notion of empowerment means getting things done through sharing
power rather than exercising it from above. Indeed, the idea of the placement
of people above others is increasingly redundant in this view of leadership,
as self-directing teams replace the traditional organisational
hierarchySolutions to problems are reached through negotiated settlements
which encompass all members of the team rather than through the traditional
exercise of management controlthe female approach to management
appears as a new development, and not simply a hearkening back to earlier
participative management styles in which managers took an interest in
employees simply in order to gain their compliance (1996: 212).
This sort of conceptualisation differentiates empowerment, at least in philosophical
terms, from earlier forms of employee involvement. Nonetheless, it provides no
guidance as to the kinds of concrete practices that constitute empowerment and,
therefore, no means to identify instances of it.
While these two definitional approaches provide little guidance as to how one might
recognise empowerment if one saw it, nonetheless they tell us two very important
things about it. First, the essence of empowerment is that it involves greater employee
control over production than has been characteristic of mainstream approaches to
management during the twentieth century. Secondly, it involves a reduced emphasison vertical control and accordingly some diminution in the importance of employees
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relative positions in managerial or occupational hierarchies as the key determinant of
their control over their work.
In seeking to explain the concrete manifestation of these two defining features of
empowerment, the more evangelical literature tends to fall back on claims like
[w]hen people in an organisation are empowered, you can walk in the door and feelthe difference. People look you straight in the eye. They show a proactive, outgoing
curiosity. (Foy 1994: 1). Nonetheless, it is possible to identify in, or deduce from, the
literature a number of more concrete mechanisms of empowerment or approaches to
production in which empowerment inheres.
The first is Total Quality Management (TQM) (Anthony et al1996: 92). Central to
TQM is the utilisation of the expertise of production workers to solve problems as
they arise and to seek new and better ways to improve the quality of products or
services. Thus, empowerment is said to be integral to TQM, since it is necessary for
employees to understand their place in the production process and to takeresponsibility for their work if quality is to be built in at all stages of production (see
Legge 1995: 219-20).
The second mechanism is team-based work or autonomous work groups (Clegg et al
1996: 212; Foy 1994; Gage 1994: 9). Self-managing teams are said to be a defining
feature of the post-bureaucratic organisation in which horizontal networks replace
vertical hierarchies and control is vested in groups of employees (Thompson and
McHugh 1995: 165). The logic of team-work is similar to that of TQM, being based
on the belief that employees who are granted some degree of autonomy over their
work will use their expertise to devise new and better ways of producing goods and
services, thereby improving organisational productivity and efficiency.
Thirdly, advocates of empowerment stress that an essential element is information
sharing and communication (see for example Foy 1994). The rationale for this
approach is that by improving communications with workers, managements will be
able to reap the benefits of employee expertise and knowledge of day-to-day
production. For example, regular problem-solving meetings may provide an avenue
through which employees can provide suggestions for improving production processes
based on their detailed understanding of the routine shopfloor practices in the
organisation. Thus, as well as the information sharing which is inherent in TQM and
teams, we might also expect consultative committees, regular management-employeemeetings and other participation mechanisms to be associated with employee
empowerment.
The preceding discussion suggests that empowerment has a number of essential
properties: delegation of responsibility from management to employees; non-
hierarchical forms of work organisation; and sharing of information between, and
within, different levels of organisation. The specific workplace mechanisms through
which these properties are realised are TQM, teams or autonomous work groups and a
variety of mechanisms for information sharing and communication. By means of these
organisational features, it is said, employees are able to enjoy increased control over
their work activities. These forms of organisation represent an alternative totraditional hierarchical organisational structures. Therefore, in workplaces where such
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features are present, we could expect to find employees enjoying higher levels of
autonomy than in workplaces without the mechanisms. Further, in workplaces where
the mechanisms were present, we could expect to find less association between
employees positions in hierarchies and their degree of autonomy than in other
workplaces.
Critiques of Empowerment
The concept of empowerment can be subjected to a number of criticisms. The most
obvious point of contention is whether empowerment, as presented by its advocates, is
real. To question the reality of empowerment is not to suggest that the forms of
organisation detailed above do not exist in contemporary workplaces. Indeed, earlier
research has demonstrated the widespread presence of some or all of them in Australia
(Harley 1995), Britain (Marchington 1996) and continental Europe (Auer 1996,
Berggren 1996). Rather, it is to suggest that they represent relatively minor
modifications to dominant, pre-existing, organisational forms and practices. From thisperspective the presence of TQM, autonomous work groups and a range of
communication and participation mechanisms falls a long way short of a paradigm
shift or the emergence of the post-bureaucratic organisation in which hierarchy is
redundant.
Furthermore, even if allegedly empowering forms of work organisation are present
in workplaces, a question mark remains over the issue of their impact on employees.
In their case study research on empowerment programs in British organisations,
Cunningham et alfound that empowerment fails to give employees much in the way
of increased power and influence (1996: 340). The advocates of empowerment
provide little if any evidence for their claims about the positive impact on employees.In the absence of any substantial body of evidence it seems prudent to remain
sceptical, especially in light of the failed promises of earlier phenomena such as post-
Fordism to enhance employee autonomy (see Harley 1994).
Some critics take this argument further, and suggest that empowerment will not
simply fail to enhance autonomy, but may indeed be associated with work
intensification. For Noon and Blyton, empowerment is
a contemporary expression of responsible autonomywhereby individual
employees are expected to take responsibility for their own actions and initiateimprovements in the way they work for the benefit of the organisation as a
whole (1997: 108).
In a similar vein, Warhurst and Thompson argue that
the hollow laugh received when mentioning the word empowerment in
most organisations is the true test that employees at many levels experience
this great innovation less as the opportunity to exercise extra discretion, and
more as the necessity to undertake more tasks (1998: 8).
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According to this strand of criticism, while putatively being associated with a
diminution of managerial prerogative empowerment is essentially an ideological and
rhetorical justification for managerialism (Thompson and McHugh 1995: 22). Legge
(1995) develops this theme, locating empowerment within the broader rhetoric of
human resource management (HRM), in which employees and customers alike are
empowered. She argues that
Without doubt the language of HRMis that of managerial triumphalism.
Managers create missions for their organisations, they change their cultures,
they act as transformational leaders that gain the commitment of employees to
the values of quality, service, customer sovereignty, that is translated into
bottom-line success. In the interests of achieving these values, employees
must take responsibility, become empowered(1995: 325).
These are all plausible critiques. If any of them is valid, then clearly empowerment as
presented by its advocates should properly be regarded as a myth. Nonetheless, ajudgement must await consideration of the evidence.
The Research Agenda
The preceding discussion forms the basis for the research agenda that is pursued in the
remainder of this paper. The research seeks to answer three questions, each of which
needs to be dealt with if it is to be possible to assess the veracity of the opposing
claims of advocates of empowerment and their critics.
Firstly, to what extent is empowerment real, in the sense that the various forms of
work organisation discussed above are present in Australian workplaces?
Secondly, to what extent are TQM, team-based work and participation mechanisms
contributing to increased employee autonomy? That is, do employees who work in
organisations that have such mechanisms report that they have greater control over
key aspects of their working lives than other employees?
Thirdly and finally, what is the role of hierarchy in determining autonomy? That is, is
the relative position of employees in hierarchies associated with significant
differences in their levels of autonomy?
The Evidence
In this part of the paper, the questions posed above are addressed, utilising data from
the second Australian Workplace Industrial Relations Survey (AWIRS95). The
discussion commences with a brief overview of the survey, then moves to consider the
operationalisation of key concepts and the construction of variables. Results of
analysis of the AWIRS data are then presented.
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The Australian Workplace Industrial Relations Surveys2
The first Australian Workplace Industrial Relations Survey conducted in 1989 and
1990 (AWIRS90) represents a significant landmark in Australian industrial relations
research. Inspired in part by the earlier series of Workplace Industrial Relations
Surveys (WIRS) conducted in Britain, AWIRS90 was conducted by the federalDepartment of Industrial Relations and surveyed nearly 2500 workplaces. It provided
the first source of quantitative, authoritative, statistically representative data on
patterns of work, employment and industrial relations across Australian industry. A
detailed account of the survey can be found in Industrial Relations at Work: The
Australian Workplace Industrial Relations Survey(Callus et al1991).
For the first time, AWIRS90 permitted many of the claims made in the debates about
the changing nature of Australian organisations to be exposed to rigorous empirical
analysis. In particular it permitted the development and operationalisation of a large
number of quantitative variables measuring, amongst other things, the incidence andoutcomes of various new forms of work organisation across Australian industry (see
Bamber et al1992; Harley 1994, 1995).
While this research has led to a number of significant findings concerning patterns of
work and employment in Australia, the data available through AWIRS90 suffered
from a major deficiency with respect to analyses of employee autonomy. Like the
British WIRS surveys, it was based only on a survey of workplaces and therefore did
not allow detailed assessment of the impact of workplace change on individual
employees and groups of employees. Prior work on employee autonomy using the
AWIRS90 data had to rely on assessments by managers of the level of autonomy of
employees (see Harley 1994).
In 1995 a second survey (AWIRS95) was conducted. It replicated many of the items in
the AWIRS90 questionnaires, but in addition included a survey of approximately
20,000 employees, drawn from workplaces which were included in the main
workplace survey, and sampled so as to allow population estimates to be derived. This
overcomes the aforementioned deficiency in the AWIRS90, and allows the systematicanalysis of the impact of organisational change on employees. Data from the employee
survey can be linked to items from the workplace surveys, thereby providing a means to
explore relationships between workplace characteristics on one hand and employee
experience on the other
3
. For full details of AWIRS95, see Morehead et al(1997).
Operationalising and Measuring Key Concepts using AWIRS95
There are three key concepts explored in this paper: empowerment, employee
autonomy and hierarchy. These are rather broad concepts, but it is possible to devise a
number of quantitative indicators of them, using the AWIRS95 dataset. The reduction
of these potentially complex phenomena to a series of simple variables is problematic
and clearly the variables do not capture all possible manifestations of the phenomena
under consideration. Nonetheless, they apprehend central elements of them and thus
can be regarded as sound indicators (see De Vaus 1990: 47).
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Empowerment
As discussed above, there has been a lack of definitional precision in the use of the term
empowerment. Nonetheless, it is possible to deduce from the literature a number of
practices which are said to be characteristic of empowerment. As discussed earlier, these
are: TQM, team-based work and a variety of consultative mechanisms.
The AWIRS95 Employee Relations Management Questionnaire (ERMQ) contains a
number of questions that can be used to construct variables that capture these practices4.
Specifically, the questionnaire asks about the presence in workplaces of: semi- or fully-
autonomous workgroups (ie. self-supervising) (CD7A); quality circles (CD7B); regular
formal meetings between managers and/or supervisors and employees (CD1F); a joint
consultative committee (CD7C); and task forces or ad hoc joint committees (CD7D).
For the purposes of the analysis, these items have been used to construct dichotomous
dummy variables, where a value of 1 is assigned if the specific practice is present and 0 if itis absent. These workplace-level variables have then been assigned to individual
employees, such that employees who work in a workplace with a given practice are
assigned a value of 1 on the relevant variable and those who do not are assigned a value of
0.
Using these variables it is possible to estimate the proportion of Australian employees (in
workplaces with 20 or more employees) who work in workplaces with each of the
mechanisms in place. These results are presented in Figure One below.
0
10
20
30
40
50
60
70
80
90
Meetings Autonomous
Workgroups
Quality Circles Joint Consult.
Ctees
Task Forces/Ad
Hoc Ctees
Figure One:Percentage of Employees Working in Workplaces with each of the
Practices in Place
(Weight = Empwt1; Weighted N = 3,647,367)Note: totals add to more than 100% because more than one practice may be in place in each workplace.
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The figure shows that substantial proportions of Australian employees are in
workplaces with one or more of the five mechanisms. By far the most prevalent
mechanism is regular formal meetings between managers and/or supervisors and
employees with nearly 90 per cent of employees working in workplaces with such
meetings. The least prevalent is the use of Quality Circles (17 per cent). The
importance of the figures presented here is that they indicate that empowerment, atleast as captured by these indicators, is widespread in the sense that a significant
proportion of the Australian workforce is employed in workplaces with one or more of
the practices present. Thus, the first research question has been answered.
Employee Autonomy
The AWIRS95 employee survey contains six items that can be used as indicators of
the extent of control which employees have over their own work and over
management of their workplaces. These items are drawn from Question 28 of the
Employee Survey which asks In general, how much influence do you have over thefollowing? and lists: The type of work you do (E28A); How you do your work
(E28B); When you start and finish work (E28C); The pace at which you do your
job (E28D); The way the workplace is managed or organised (E28E); and
Decisions which affect you at this workplace (E28F). Each item has a four-point
response scale: Dont know; None; A little; Some; and A lot.
For the purposes of the analysis reported here, responses of Dont know were re-
coded as missing values. The scales were then re-scored from 0 (None) to 3 (A lot).
These six variables represent measures of some of the more central aspects of
employee influence over the performance of jobs, as well as (in the case of the latter
two) influence over workplace management and decision making.
Table One: Employee Autonomy (Percentage of Employees by Form of Control)
Form of Control None A Little Some A Lot Total
Type of Work 19.2% 19.7% 34.9% 26.3% 100%(3,589,973)
How Work Done 7.7% 14.1% 30.8% 47.4% 100%
(3,582,233)Start and Finish
Times
34.1% 15.7% 24.0% 26.1% 100%
(3,572,287)
Pace of Work 14.6% 16.4% 30.4% 38.5% 100%(3,568,500)
How Workplace
Managed
43.4% 23.3% 22.1% 11.3% 100%
(3,571,741)
Decision Making 27.0% 30.9% 29.5% 12.6% 100%(3,566,192)
(Weight = Empwt1; Weighted N for Employee Survey = 3,647, 367)
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In addition to analysis of these individual items, this paper also utilises a composite
autonomy scale that was produced by summing the items. The scale has a range
from 0 to 18. Calculation of Cronbach Alpha for the items indicates that the scale has
good internal consistency (Alpha = 0.825).
Using these measures, it is possible to form a picture of levels of autonomy inAustralian workplaces. Frequencies for each of the six items appear in Table One.
Perhaps the most striking, if unsurprising, finding is that employees tend to have much
less control over management and decision making than they do over the conduct of
their own work. On both workplace management and decision making, around 60 per
cent of employees said that they had no control or little control, and only around 10
per cent reported high levels of control. Of the other four items, those that are
prominent are pace of work and how work was done, in terms of relatively high levels
of control, and type of work and starting and finishing time in terms of relatively low
levels.
The other important point illustrated by the table is that all the variables are
reasonably well distributed across the response categories, suggesting that there is
considerable variation across the population of Australian employees. This picture can
be supplemented by examining the distribution of employees on the composite scale.
This appears as Figure Two below. The 18-point scale has been grouped for ease of
presentation.
Figure Two: Employee Autonomy (Percentage of Employees by Score on
Composite Scale)
(Weight = Empwt1; Weighted N for Employee Survey = 3,647, 367)
0
5
10
15
20
25
30
35
40
45
None (0) Low (1-6) Med (7-12) High (13-17) Max (18)
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The most important point illustrated by Figure Two is that very few employees report
no control (0) or maximum control (18) and that the remainder is very evenly
distributed.
Hierarchy
Hierarchy is a difficult concept to operationalise fully. There are numerous dimensions
of individuals places in hierarchies. Nonetheless, the AWIRS95 data allow the
construction of a useful measure of employees relative positions. The Employee
Survey asks respondents to describe what they do in their jobs. On this basis, they are
assigned to Australian Standard Classification of Occupations (ASCO) Major and
Minor Groups5. While the ASCO classification cannot be regarded strictly as a
hierarchy in terms of the authority and status of employees, it provides a useful proxy.
The basis of the ASCO is the classification of occupations according to the two criteria
of skill level and skill specialisation. According to the Australian Bureau of Statistics(ABS)
skill level (is) measured operationally as the amount of formal education, on-
the-job training and previous experience usually necessary for the satisfactory
performance of the set of tasks [constituting a given job]skill specialisation of
a job is a function of the field of knowledge required, tools and equipment used,
materials worked on, and goods or services provided in relation to the tasks
performed (ABS 1997: 5-7).
Figure Three: Occupational Classification of Employees (Percentage of
Employees in Each ASCO Major Group)
(Weight = Empwt1; Weighted N = 3,647, 367).
0
2
4
6
8
10
12
14
16
18
20
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While this basis means that the ASCO is, in a strictly formalsense, only based on a
hierarchy of skills, nonetheless it is reasonable to assume that other dimensions of
occupations such as status, authority and influence are at least to an extent associated
with skill. On this basis (and in the absence of a superior measure) the ASCO is used
here as a means to assign employees to positions within a hierarchy.
The distribution of employees on this measure is presented in Figure Three. For the
purposes of the analysis in this paper, the ASCO classification was used to create a
series of dichotomous dummy variables, with one for each occupation. If an employee
was a member of a particular occupation they were assigned a value of 1 on the
relevant dummy and, if not, a value of 0.
Empowerment and Employee Autonomy
As a first step in analysing the associations between empowerment and autonomy,
bivariate correlation analysis was undertaken. Specifically, correlations between eachof the empowerment variables and each of the five autonomy items, as well as the 18-
point autonomy scale, were calculated. As the empowerment variables are
dichotomous dummies, Kendalls tau-b was chosen as the appropriate correlation
coefficient.
The analysis provided no evidence of any real association, either positive or negative,
between any measure of empowerment and any measure of autonomy. While in many
cases there was a statistically significant correlation (at the 0.01 level) between an
autonomy variable and an empowerment variable, the correlations were extremely
weak. Those coefficients that were statistically significant ranged from 0.014 up to
0.065. These findings are consistent with there being effectively no relationshipbetween any of the mechanisms and any of the forms of autonomy.
This apparent lack of association may reflect the fact that the variables measuring the
presence of the mechanisms were collected at the level of workplaces. That is, while
they have been attached to employees they indicate only whether an employee works
in a workplace with such practices in place. They do not tell us whether an employee
is actually involved in the operation of the practice in question. While this represents
a limitation of the findings, nonetheless it is possible to conclude with considerable
confidence that employees who work in workplaces with any of the empowerment
mechanisms in place do not report any difference in their level of autonomy fromemployees who work in workplaces without the mechanisms.
This is a very significant finding. It is consistent with the claim that the practices
allegedly associated with empowerment do not contribute to employee autonomy.
This undermines severely the case put forward by proponents of empowerment. It also
means that there is no point in exploring the interactions between the practices and
hierarchy, since if the former have no association with autonomy then they cannot
mediate between hierarchy and autonomy6.
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Hierarchy and Autonomy
The empowerment thesis is not just that specific forms of work organisation
contribute to autonomy, but also that in the contemporary workplace hierarchy has
ceased to be an important determinant of autonomy. Since the analysis has
demonstrated the lack of a linkage between empowerment and autonomy, the nextlogical step is to explore associations between hierarchy and autonomy.
Bivariate correlation analysis (Kendalls tau_b) was chosen as the initial means of
exploring the associations. Correlation analysis was conducted using the ASCO
dummies, the six autonomy items and the composite autonomy scale. The results
appear in Table Two below.
Table Two: Correlations between Occupational Group Membership and Autonomy
Type of
Work
How Work
Done
Start &
Finish
Times
Pace of
Work
How
Workplace
Managed
Decision
Making
Composite
Scale
Managers 0.18** 0.16** 0.20** 0.14** 0.23** 0.19** 0.22**
Professionals 0.15** 0.17** 0.11** 0.05** 0.09** 0.09** 0.12**
Para-Professionals -0.01 0.00 -0.01 -0.02** 0.02* -0.11 0.00
Tradespersons -0.04** -0.01 -0.07** -0.02** -0.04** -0.03** -0.03**
Clerks
-0.03** -0.01 0.08** 0.05** -0.02** -0.02* 0.01
Sales and Personal -0.05** -0.07** -0.07** -0.03** -0.08** -0.06** -0.07**
Plant and Machine -0.06** -0.07* -0.11** -0.06** -0.07** -0.05** -0.09**
Labourers -0.11** -0.13** -0.11** -0.09** -0.09** -0.09** -0.13**
(Weight = REMPWT1 [Effective Sample Size])
** = significant at 0.01 level; * = significant at 0.05 level.
Correlation coefficient = Kendalls tau_b.
These figures are clearly suggestive of a link between occupation and autonomy. Most
obviously, being a manager is significantly and moderately correlated with every one
of the autonomy variables. At the other end of the occupational scale being a labourer
or similar is, while less strongly, significantly and negatively correlated with each
autonomy measure. While the correlations for other occupational groups are for the
most part weak, and in a number of cases not significant, nonetheless there is a pattern
to the results. Being a managers or professional is positively associated with
autonomy, while being a member of any other group tends to be negatively associated.
This suggests that the occupational scale is indeed a scale or hierarchy, with those at
the top being more autonomous than those at the bottom.
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shown them to affect, or to be proxies for factors that affect, employee autonomy (see
for example: Bamber et al1992; Harley 1994, 1995). The variables chosen were: size
of workplace in which the employee worked; industry (classified by ANZSIC industry
division); whether they were a public or private sector employee; their gender;
whether they were employed on a permanent or casual basis; whether they were a
union member; and whether they were a full- or part-time employee7.
Bivariate correlation analysis was then carried out for each of these variables and each
of the autonomy variables, including the composite scale. The results of this analysis
are presented in Table Three below. Only those variables which produced statistically
significant correlation coefficients of 0.10 or above with at least three of the autonomy
variables are included in the table, on the basis that anything less than this rendered
the variable unimportant as a factor which intervened to any great extent. Industry
division, size, public/private sector employment and gender were not significantly
correlated with autonomy to any discernible extent and are, therefore, omitted from
the table.
Table Three: Correlations between Selected Employee Characteristics and Autonomy
Type of
Work
How
Done
Start &
Finish
Pace of
Work
Manage
Workpl.
Decision
Making
Scale
Part-Time
Employee-0.08** -0.09** -0.09** -0.06** -0.11** -0.09** -0.10**
Casual
Employee-0.09** -0.11** -0.06** -0.04** -0.11** -0.09** -0.10**
Union Member -0.08** -0.09** -0.14** -0.11** -0.08** -0.08** -0.11**
Weighted to Effective Sample Size (REMPWT1)
** = significant at 0.01 level
Correlation coefficient = Kendalls tau_b.
The results show that being a part-time or casual employee is negatively associated
with autonomy, as is being a union member. The association between employment
status and autonomy is not surprising and has been shown in other research (see for
example Harley 1995). The link between union membership and autonomy is rather
less self-evident. However, a plausible hypothesis is that, rather than union
membership contributing to lower levels of autonomy, employees who feel that they
have little control at work are more likely to join unions than those who enjoy
substantial control. The purpose of this discussion, however, is not to resolve this
issue. Rather, it is to limit the range of variables that must be controlled for. On the
basis of this correlation analysis, only part-time status, casual status and union
membership need to be taken into account in measuring the associations between
hierarchy and autonomy.
The final piece of analysis undertaken was multivariate regression. The dependent
variable was the 18-point autonomy scale. While this variable is not interval-level thedecision was made to use OLS regression. OLS is a very robust method and the
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dependent variable is sufficiently analogous to a genuine interval level variable to
make this decision justifiable (see Studenmund 1997 for a detailed account of the
appropriateness of OLS in this circumstance). The model was specified as follows:
Autonomy Scale = Occupational Dummies8 + Part-Time Status + Casual Status +
Union Membership Status + e
The results are presented in Table Four.
Table Four: Multivariate Model of Employee Characteristics and Autonomy
(OLS Regression)
Variable B (Unstandardised) Sig.
Constant
Manager
ProfessionalPara-Professional
Tradesperson
Clerk
Sales and Pers. Services
Plant and Machine
Part-Time Employee
Casual Employee
Union Member
10.4
5.70
3.011.47
0.65
1.53
1.02
-0.10
-0.66
-1.01
-0.87
0.000
0.000
0.0000.000
0.000
0.000
0.000
0.546
0.000
0.000
0.000
Weighted to Effective Sample Size (REMPWT1)
Adjusted R2 = 0.14
The results of the regression analysis provide support for the findings presented
above, but also provide a timely reminder of the complexity of the factors and
processes influencing employee autonomy. On this latter point, the R2 of 0.14 shows
that a small amount of the variance in autonomy is accounted for by occupation,
employment status and union membership status. This is suggestive of the fact that
there are other factors at work which have not been built into the model.
On the other hand, the results of the regression analysis are very much consistent with
the earlier correlation analysis results. Union membership, casual employment status
and part-time employment status were all negatively and significantly associated withautonomy, although only relatively weakly when the other factors were controlled for.
Further, the analysis shows that, even when we control for those additional factors that
are associated with autonomy, hierarchy as measured by membership of ASCO group
remains associated with autonomy. The direction and magnitude of the association
varies fairly consistently between the top and bottom of the hierarchy. Using
Labourers and Related Workers as the reference group, there is a statistically
significant association between each of the other occupational dummies and autonomy
(with the exception of Plant and Machine Operators). Further, the relative magnitude
of the regression coefficients suggests a very similar ranking of occupational
categories to that reported in Figure Four above.
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The Myth of Empowerment
The findings presented above provide little support for the empowerment thesis. The
alleged link between forms of work organisation which empower employees and
employee autonomy simply are not evident in the data. Further, because the measure
of autonomy is based on employee self-reporting, it seems apparent that thesemeasures do not lead even to the perception of enhanced autonomy on the part of
workers. On the other hand the results demonstrate quite clearly that hierarchy, as
captured by occupational status, is linked to employee autonomy.
The practical implications of these findings are obvious, but nonetheless of
considerable significance. Employees and unions who encourage or condone the
introduction of empowerment measures at a workplace level in the belief that they
will lead to increased control of work are likely to be disappointed. Similarly,
managers who introduce such measures with the intention of ceding control to
employees, or even in an attempt to gain compliance by providing employees with theappearance of control, are unlikely to meet their aims. In this sense, the inescapable
conclusion to which the analysis leads is that, like many fads that have preceded it,
empowerment does not appear to have the consequences that it is claimed to have.
This raises two fundamental questions. First, why does empowerment not work, in the
sense that access to control and decision-making continues to be determined by ones
occupational status and not by the presence or absence from ones workplace of the
mechanisms of empowerment? Secondly, why is it that concepts such as
empowerment, and its predecessors such as post-Fordism, are able to gain such
currency in academic and popular management discourse in spite of the lack of any
compelling evidence of their capacity to deliver on their promises?
To address the latter question first, a number of possible explanations can be put
forward. The first is that empowerment and its predecessors are examples of
management strategies to gain the commitment of employees in return for ceding a
small amount of control, a la responsible autonomy (Friedman 1977). If this were
the case, then empowerment strategies could be said to work if employees felt that
they had enhanced control, but objectively did not. While this argument is, prima
facie, plausible the evidence presented in this paper poses some problems for it.
This is because the measures of autonomy that were employed were based onemployees own self-reported levels of autonomy. That is, they were essentially
subjectivemeasures, although it is to be hoped that they also provided some degree of
objective measurement. If empowerment was about making employees feel that they
had increased autonomy, it might be expected that, regardless of objective reality,
employees in workplaces with the mechanisms present would report higher levels of
autonomy than those elsewhere. This was not the case, suggesting that the presence of
the mechanisms had no effect on perceptions of employee autonomy.
This does not necessarily render the management strategy explanation invalid, in the
sense that the presence of empowerment mechanisms in workplaces might well have
an impact on how employees feel about their work, without necessarily having anyimpact on their perceptions of autonomy. It remains possible that empowerment is
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part of a deliberate strategy by managers to fool their employees, but the evidence
presented here cannot be said to provide strong support for that argument.
An alternative explanation can be sought in the general growth and popularity of a
range of managerial fashions during the 1980s and 1990s. Empowerment can be
seen as just one example of a vast array of managerial fashions that have emerged,been seized upon, apparently failed and then faded away, only to be replaced by the
next one. Ramsay, in his critique of managerial fashion, argues that
The proclamation of the management panacea is nothing new, as aficionados
of human relations writings in the Mayovian or Maslovian traditions could
readily confirm. The sales pitch has grown more clamorous and hyperbolic in
recent times, though; the packaging more sophisticated, the dismissal of past
models more scathing and complete, the tone more edgy, the pace of the
product cycle more frantic (1996: 155).
While he provides only a provisional explanation for the phenomenon (1996: 159-67),
the importance of Ramsays work is that it documents the exponential growth of
management fads over the past decade or two. While this does not explain the
particular case of empowerment, it provides at least a partial explanation for its
popularity. That is, in the current environment, panaceas are more fashionable than
ever and appear to be being embraced uncritically.
Moving to consider the second question that was posed, why doesnt empowerment
empower employees? Over the past decade we have increasingly been bombarded
with claims that work and organisations in the advanced economies are undergoing a
radical transformation, which has as one of its defining features an increase inemployee involvement and control at work. The findings of this study and numerous
others (see for example: Boreham 1992; Warhurst and Thompson 1998; Harley 1994,
1995) have been that there simply is no reliable large-scale evidence of any such
change taking place. Rather, it is a pervasive modern myth (Boreham 1992; Noon and
Blyton 1997: 1).
This is not to say that patterns of work and organisation in the advanced economies
are not undergoing significant change. As Warhurst and Thompson argue, there are
only a few diehards clinging to the view that nothing really has changed and that it is
still just the same old capitalist labour process (1998: 5). Nonetheless, the change thatis occurring does not appear to involve the spread of forms of work organisation that
are enhancing employee autonomy.
Clearly, it is beyond the scope of this paper to provide a definitive explanation of this
fact, but a provisional explanation of the gap between rhetoric and reality can be
generated by considering a concept central to the notion of empowerment: power. The
essence of empowerment is that it involves changes in the distribution and exercise of
power within organisations. Power is also a defining feature of management, in the
sense that managerial work necessarily involves the exercise of power, whether
through coercion or persuasion (Clegg and Palmer 1996: 2). Power is a complex and
many-faceted phenomenon, but there is a specific aspect of it that is central toempowerment. That is, control over how production takes place.
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Advocates of empowerment seem content to ignore the obvious tension between
managerial and employee control of production which is inherent in their position.
This point is illustrated nicely by an excerpt from Empowering People at Work (Foy
1994). She asks, Who manages empowering? and answers that:
Managers do, thats who. Empowering people must notmean disempowering
managers. People want to be managed. They want to be managed well. They
want their leaders to lead them, pointing the way, focusing on priorities,
feeding back on how they are doing. There is no room for management
abdication in an organisation that is trying to empower its people (Foy 1994:
xv).
Foys answer illustrates the implicit understanding of power which underlies the
arguments of advocates of empowerment: managers hold power, which they may in
some circumstances choose to give to, or share with their subordinates, but only ifthis does not detract from their own capacity to exercise power.
The most obvious flaw in this conceptualisation is that it assumes that power is
analogous to a commodity that can be shared among individuals and groups. Van den
Bergh argues that the idea that power is a kind of substancewhich one can have in
ones pocket in the same way as money is a fallacy (1972, cited in Clegg 1979: 65).
A more plausible view of power in organisations is that it resides primarily (though
not exclusively) in organisational structures.
The central organisational structure in which power - at least the power to control
production - resides is hierarchy. Hierarchical forms of organisation emerged as partof the growth of the factory system around the turn of the century, as a key mechanism
for managerial control and coordination of production (see Clawson 1980). Hierarchy
is one of the defining features of bureaucratic forms of organisation (Weber 1984) and
bureaucracy, in a variety of guises, has been one of the key features of modern work
organisation (Thompson and McHugh 1995).
Moreover, it remains a central characteristic of contemporary production. Contrary to
the claims of popular management texts, we do not live in a post-bureaucratic
organisational world.
The prime mistake of those promoting the post-bureaucratic organisation is to
believe that new horizontal forms of co-ordination have replacedmore
traditional vertical divisions of labour and command structurevertical
structures remain the backbone of organisations (Warhurst and Thompson
1998: 15).
Patterns of work and employment are marked as much by continuity as by change.
Organisational innovations do not come into being in a vacuum, but emerge alongside
already existing phenomena, which themselves emerged alongside pre-existing
phenomena (Harley 1995: 107-115).
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This means that developments such as the forms of work organisation allegedly
associated with empowerment must be understood in the context of the pre-existing
features of organisations. Any impact that they have must be understood in the context
of the structures and relations that characterise contemporary organisations.
The relative capacity of individuals or groups to exert control over production isdetermined primarily (although by no means exclusively) by virtue of their respective
positions within organisational hierarchies. Positions within hierarchies are defined in
terms of their relationship to other positions. Managers are managers by virtue of their
positions within hierarchies, which affords them the capacity to exercise power over
their subordinates, as well as granting them a relatively high level of autonomy.
Subordinates are subordinates by virtue of the fact that they have a lesser capacity to
exert control over production than do managers.9 In this sense, as long as hierarchy
remains a feature of organisational life there are very real limits on the extent to which
managers could give away power, in the way that Foy (1994: xv) and others propose.
The forms of work organisation proposed by advocates of empowerment are simply
not of the same order of magnitude as hierarchy. They are relatively minor
innovations, while hierarchy is a fundamental organisational structure. Unless
hierarchy disappears, it is extraordinarily unlikely that we will witness a generalised
shift in control from managers to employees. It is this fact of organisational life that
provides the most compelling explanation of why empowerment does not empower
workers. Advocates of empowerment, in their enthusiasm for another panacea, appear
to have paid scant attention either to the empirical evidence concerning the nature of
contemporary organisations, or to the body of organisation theory that points to the
potential flaws in their thesis. A more measured assessment of the evidence suggests
that empowerment is indeed a modern myth.
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11
I would like to thank Stephen Deery and Richard Hall for their very helpful comments on an earlier
version of this paper.2I acknowledge the assistance of the Department of Workplace Relations and Small Business and the
Social Science Data Archive in making the AWIRS95 data available.3It should be noted that the data were collected from employees in workplaces with workforces of 20 or
more, thereby being representative of the majority of Australian employeesbut not the majority of
workplaces(Morehead et al 1997: 26).4The variable number, as it appears in the AWIRS95 codebooks, is shown in parentheses after the
details of each question. This convention is followed throughout the discussion of variable construction.5In 1996 the Australian Bureau of Statistics introduced a new version of ASCO (ASCO Second
Edition) which differed in important respects from the original ASCO (ASCO First Edition). The data
collected by the AWIRS95 utilises ASCO First Edition. The ASCO Major Groups in the First Edition
are: Managers and Administrators; Professionals; Para-Professionals; Tradespersons; Clerks;
Salespersons and Personal Service Workers; Plant and Machine Operators and Drivers; Labourers and
Related Workers. For further details of both editions, see ABS (1997).6This logically derived conclusion can be verified very simply by running bivariate correlations
between each of the ASCO dummy variables and each of the autonomy variables, then performingpartial correlations for each pair of variables, controlling for each of the empowerment variables in turn.
The correlation coefficients are practically the same regardless of whether the empowerment variables
are controlled for indicating that they do not mediate the relationship between hierarchy and autonomy
in any meaningful way.7With the exception of size, all the control variables were constructed as dichotomous dummies: gender
(1=female, 0=male); part-time status (35 hrs per week=2); casual status
(casual=1, permanent=0); union membership (member=1, non-member=0); and ANZSIC Industry Code
(a series of dummy variables, one for each industry division, whereby if employed in that division
assigned a value of 1 and if not employed in that division a value of 0). Size was defined by the number
of employees in the workplace and grouped: 20-49 employees (1); 50-99 (2); 100-199 (3); 200-499 (4);
and >500 (5). The size variable was then used as a scale (1-5).8Labourers and Related Workers was used as the reference group and accordingly that dummy
variable was not included in the model.9This is not to say that those at the bottom of hierarchies do not have power, formally and informally,
but rather that in relative terms their potential to control production is less than those higher up.
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