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Academy ofManagement Journal
2004, Vol. 47, No. 3, 332-349.
SETH R. SILVER
St. John Fisher College
W. ALAN RANDOLPH
University of Baltimore
332
2004 Seibert, Silver, and Bandolph 333
FIGURE 1
A Multilevel Model of Empowerment
Hypothesis 3
Work-Unit Empowerment Work-Unit
Level Climate Performance
2
^Hypothesis
Hypothesis 4a and 4b
Individual
Individual Psychological Performance
Level Empowerment
Job Satisfaction
334 Academy of Management Journal June
manifest, and the compositional model appropriate a shared perception regarding the extent to which
for forming and assessing empowerment climate as an organization makes use of structures, policies,
a higher-level construct. and practices supporting employee empowerment.
Empowerment climate is composed of the three
dimensions identified in the previous literature?
information sharing, autonomy through bound
Climate
aries, and team accountability?that we expect to
climate has been defined as a set form a single unidimensional construct.
Organizational
of shared perceptions regarding the policies, prac
tices, and procedures that an organization rewards, Issues of Level
supports, and expects (James, Joyce, & Slocum,
1988; Schneider & Reichers, 1983). Previous re In organizational research the term "level" refers
search has shown climate to be con to the specific focal unit under consideration, typ
perceptions
and empirically distinct from affective or ically the individual, the work unit or team, or the
ceptually
evaluative individual reactions Hellrie organization. Researchers who develop multiple
(Downey,
level models of organizational processes need to be
gel & Slocum, 1975; James & Jones, 1974; LaFollette
& Sims, 1975; Rousseau, & Snyder, explicit regarding the theoretical level of origin and
1988; Schneider
out of the field-theoretic tradition the corresponding level of measurement for their
1975). Growing
constructs. Researchers also need to be explicit re
initiated by Kurt Lewin, climate research is an ef
garding the level at which a construct is manifest
fort to understand organizational behavior through
mem within their theoretical model and the correspond
the subjective perceptions of organizational
ing level at which the construct is represented for
bers (Schneider, 2000).
purposes of statistical analysis (Klein, Dansereau, &
Although climate reflects descriptive beliefs in
dividuals hold regarding properties of their organi Hall, 1994; Rousseau, 1985).
The level of origin for a construct is the level at
zations, there is not a one-to-one corre
necessarily
which the processes forming the construct take
spondence between
specific managerial practices
place. Although empowerment climate perceptions
and employee climate perceptions. For example, in
reflect distal characteristics of an organization,
some cases posting quarterly profit and loss infor
these
perceptions emerge from a fundamentally
mation may be as an empowering
seen practice,
psychological process in which individuals ascribe
while in others it may be seen as a means for
meaning to the structures and practices occurring
weakening the wage demands of employees. These
in the organization around them (James, 1982).
different interpretations of the same practice Thus, the level of origin for empowerment climate
may arise from individual
different backgrounds
perceptions is the individual, and the appropriate
and experiences or from
the history of a specific
level from which to collect data, the level of mea
organization or work unit (James, James, & Ashe, surement, is also the individual.
1990). Climate thus captures the meaning employ The theoretical level of a construct refers to the
ees ascribe to the overall pattern of organizational
level at which the construct is manifest in a given
activities. Climate perceptions are critical because,
theoretical model (Kozlowski & Klein, 2000). A de
according to this perspective, it is the employees' of climate is that perceptions
fining characteristic
own understanding of a situation that drives their are shared cli
(e.g., Schneider, 2000). Although
attitudes and behaviors (James & Jones, 1974; mate perceptions within we
originate individuals,
Schneider, 2000). climate perceptions to be
expected empowerment
Schneider (1975) was one of the first to argue that shared by members of the same work unit because
climate dimensions should have a strategic focus? of a number of social processes taking place within
that is, that one should not assess overall climate the unit. First, members of the same work unit are
but climate for something. Researchers have iden to the same goals, strategies,
likely to be exposed
tified climates for specific domains of organiza work environments, and other proxi
technologies,
tional functioning, such as service (Schneider, mal influences, and this exposure results in a rela
Parkington, & Buxton, 1980), safety (Hofmann, & of their organiza
tively homogeneous experience
Stetzer, 1996), and procedural justice (Naumann & tion that is distinct from those of other work units
Bennett, 2000). In view of the important role in the (James & Jones, 1974). Members of the same work
success of empowerment efforts that researchers unit also share the same manager. Middle managers
and practitioners have attributed to organizational fill in, or "interpolate," broad organizational poli
policies and practices, we propose a climate for cies as they apply to their own units, creating a
chological empowerment has amore subjective and accountability for work outcomes. These manage
evaluative focus, which is based on the match be rial practices should enhance individuals' feelings
tween an individual's values and the demands and of competence and impact in their organization
of his or her work tasks. Finally, in (Kirkman & Rosen, 1999; Liden & Tewksbury,
opportunities
terms of content, empowerment climate asks re 1995). Both empowerment climate and psycholog
to assess the meaning of organizational ical empowerment are conceptualized as unitary
spondents
structures and
practices related to information constructs composed additively from their under
sharing, boundaries, and team accountability, dimensions.
lying We therefore framed the follow
while psychological empowerment asks respon ing hypothesis in terms of the unitary empower
dents to report such psychological states as mean ment constructs rather than the underlying
ing, competence, self-determination, and impact. dimensions. Note also that, given the nature of the
The first task of this study was to show that these constructs, Hypothesis 2 is a cross-level hypothesis.
two conceptually distinct empowerment constructs
are in fact empirically Hypothesis 2. Empowerment climate and psy
distinct.
chological empowerment will be positively and
Hypothesis 1. Empowerment climate and psy related.
significantly
chological empowerment are empirically dis
tinct constructs.
Empowerment Climate and Work-Unit
An extensive has shown
literature that organiza
Performance
tional climate perceptions are related to individual
attitudes and behaviors (e.g., Glisson & James, Previous research has documented the positive
2002; Hofmann & Stetzer, 1996; Lawler, Hall, & between organizational climate as a
relationship
Oldham, 1974; Naumann & Bennett, 2000; Schnei general construct and organizational and subunit
der et al., 1980). The view taken by climate re performance outcomes (e.g., Lawler et al.,
1974;
searchers is that it is important to understand the Pritchard & Karasick,
1973; Schneider, 1985). How
shared meaning that employees ascribe to organi ever, little previous research is available regarding
zational characteristics because it is this subjective empowerment climate per se. The literatures on
that determines the feelings and be organizational design and work team effectiveness
understanding
haviors of
employees (James & Jones, 1974). In were used to help us form another hypothesis
keeping with this literature, we expected percep based on the constituent elements of the empower
tions of empowerment climate to be positively re ment climate construct:
information sharing, au
lated to individual-level perceptions of psycholog tonomy through boundaries, and team accountabil
ical empowerment. ity. For example, previous research has shown that
Examination of the specific dimensions of the access to accurate information is necessary for ef
two empowerment constructs provided strong the fective decision making in groups and organiza
oretical reasons to expect a positive relationship. tions (e.g., Galbraith, 1977; Gladstein, 1984). Work
For example, a clear vision and well-defined goals, units with better information should make better
roles, and define the "autonomy decisions, according to the "work smarter" logic
procedures
boundaries" dimension of empowerment frequently discussed in the literature on participa
through
climate. These practices help to define tion (e.g., Scully, Kirkpatrick, & Locke, 1995). Such
managerial
the boundaries within which one can exercise au processes should be associated with the informa
tonomous action and influence. They should there tion sharing dimension of empowerment climate.
fore be associated with greater feelings of self Clear goals, responsibilities, and procedures facili
determination and impact (Hackman & Oldham, tate effective teamwork, cohesion, coordination,
1980). The information-sharing dimension of em and conflict resolution in organizational work
climate is defined by broad sharing of groups (e.g., Campion, Medsker, & Higgs 1993; Gal
powerment
financial, operational, and
performance informa braith, 1977; Gladstein, 1984; Guzzo, Yost, Camp
tion. This practice should help individuals to better bell, & Shea, 1993). These practices should be as
understand the meaning of their work and develop sociated with the "autonomy through boundaries"
a sense of competence in performing their tasks, dimension of empowerment climate. Team respon
and it should make them feel better able to have an sibility and autonomy, along with careful selection
impact on their organization (Bandura, 1982; Fer and training of team members, is associated with
rante & Rousseau, 2001; Gist &Mitchell, 1992). The team potency and performance (e.g., Cummings,
2004 Seibert, Silver, and Bandolph 337
1978; Kirkman & Rosen, 1999; Guzzo et al., 1993). through which empowerment climate affects indi
These outcomes should also be associated with the vidual behaviors and attitudes. Thus,
team accountability dimension of empowerment
climate. In view of the findings from these several Hypothesis 5a. Psychological empowerment
different research areas, we will mediate the relationship between empow
expected empower
ment climate to be positively related to work-unit erment climate and individual performance.
performance. Thus, 5b. Psychological
Hypothesis empowerment
will mediate the relationship between empow
Hypothesis 3. Empowerment climate will be
erment climate and job satisfaction.
positively and significantly related to work
unit performance.
METHODS
The Role of Psychological Empowerment Sample and Procedures
A growing body of research supports the conten Individual-level data for this study were col
tion that psychological empowerment will be re lected from 375 employees in one division of a
lated to individual performance and satisfaction Fortune 100 manufacturer of high-technology of
(Liden et al., 2000; Spreitzer, 1995; Spreitzer et al., fice and printing equipment located in the north
1997; Thomas & Tymon, 1994). For example, Spre eastern United States. Three hundred one employ
itzer and her coauthors (1997) found that compe ees provided complete surveys (an 80 percent
tence and impact were most strongly related to response rate). The employees were electrical, me
managerial effectiveness, while meaning was the chanical, and systems engineers
design organized
best predictor of work satisfaction. Thomas and into 50 project teams involved in design engineer
Tymon (1994) found their measure of choice (con ing for a family of new products. Project teams were
ceptually related to self-determination in the Spre the primary work unit for the engineers, and the
itzer model) related to work effectiveness. Impact, teams were composed of mixes of the different
and choice were each related to types of engineers, as required com
meaningfulness, by the specific
job satisfaction. Thus, our tests of Hypotheses 4a ponents being engineered. All teams had been in
and 4b, which are stated below, were designed to place for at least one year and continued to meet at
replicate previous findings and are proposed here least once a week. The average project team had 6
as part of the larger multiple-level model members, and the teams ranged from 3 to 14 mem
being
tested in this study. Since findings for specific di bers. Respondents completed surveys that assessed
mensions of psychological empowerment have var their perceptions of empowerment climate, psy
ied across studies, we developed our hypotheses chological empowerment, and job satisfaction. Sur
for the overall construct. vey packets were distributed to respondents by
their project team managers. Each survey packet
Hypothesis 4a. Psychological empowerment included a cover letter the general pur
explaining
will be positively and significantly related to of the was
pose study and stating that participation
individual job performance. The letter also assured respondents that
voluntary.
4b. their information would remain confidential. Re
Hypothesis Psychological empowerment
will be positively and significantly related to spondents were instructed to complete the survey
individually and to use the preaddressed envelope
job satisfaction.
to mail the survey directly to one of the authors.
Empowerment theorists view psychological em Data on individual performance were collected
powerment as the mechanism through which con from the appropriate team manager
project during
textual factors influence individual attitudes and weekly staff meetings conducted by second-level
behaviors (Conger & Kanungo, 1988; Liden & managers (that is, the managers of the project team
Tewksbury, 1995; Spreitzer, 1995, 1996; Thomas & managers). One of the authors administered the
Velthouse, 1990; Quinn & Spreitzer, 1997). We performance measurement instrument to the
have specifically formulated our multilevel =
model project managers [n 50). Data on work-unit per
of empowerment as a means to empirically exam formance were collected from the appropriate
ine the relationship between an empowering cli second-level =
managers [n 16). We judged the
mate, the individual experience of empowerment, second-level managers to be the most appropriate
and individual and organizational outcomes. In source for work-unit performance data because
keeping with this theoretical view, we expected they had a broad organizational perspective by
psychological empowerment to be a mechanism which to evaluate team performance. Al
project
338 Academy of Management Journal June
though they were not directly involved in manag Three items from this scale were inconsistent
ing any particular project team, they regularly re with the compositional model used in this study,
viewed project team performance information. All using the referent "I" (representing psychological
technical project teams within the organization climate) instead of "we" (representing collective
studied were tracked via a uniform performance climate). These items were therefore excluded from
objectives system, and the second-level managers all subsequent analyses. We
averaged responses to
were invited to consult this information when the remaining to form a single score [a =
27 items
forming their own judgments regarding project .97). Because empowerment climate is a work-unit
team level construct, individual scores were aggregated
performance.
data (including individual and work to yield a single score for each work unit. The
Complete
unit performance data provided by project team Cronbach alpha based on these aggregated scores
managers and second-level managers) were avail was .98. Analysis of the dimensional properties
able for 48 of the 50 teams, leaving a final sample of and aggregation properties of the empowerment cli
285 employees with complete individual and mate instrument are reported in the results section.
work-unit-level data. The average age of the mem Psychological empowerment Spreitzer's (1995)
= scale was
bers of the final sample was 39.6 years (s.d. 14.3), 12-item psychological empowerment
and these respondents had been employed by the used to measure individual perceptions of empow
for an average of 14.8 years = erment. The
organization (s.d. rating scale ranged from 1, "strongly
10.7). Seventy-seven percent of the sample mem disagree," to 7, "strongly agree." The measure is
bers were male; 80.4 percent were white; 1.4 per composed of four subscales designed to reflect
cent were African-American; 3.5 percent were His Thomas and Velthouse's (1990) definition of em
panic; and 5.9 percent were Asian/Pacific Islander. powerment. An example item from each subscale is
Nine percent of the respondents in the final sample "The work I do is very important to me" (meaning);
indicated high school completion or some college "I am confident about my ability to do my job"
as their highest level of educational achievement; (competence); "I have significant autonomy in de
21 percent indicated attainment of an associate's termining how I do my job" (self-determination);
degree; 43.6 percent, a bachelor's degree; 24.4 per and "My impact on what happens in my depart
cent, a master's degree; and 2 percent, a Ph.D. ment is large" (impact). Following Spreitzer (1995,
1996), we averaged scores from the four subscales
to form a single empowerment score for each re
Measures =
spondent [a .88).
Empowerment climate. We assessed empower Work-unit performance. The team performance
ment climate using an instrument developed by instrument, which was developed specifically for
Blanchard and his
colleagues (Blanchard et al., this study, was based on discussions with a set of
1995; Randolph, 1995) to measure organizational managers from a division of the company not par
aspects of empowerment. The measure consists of ticipating in the study. One of the authors met with
30 items designed to reflect three dimensions: in a group of three managers who ranged in rank from
formation sharing, autonomy through boundaries, second-level manager to vice president for quality
and team responsibility and accountability. Exam and who had from 10 to 25 years of experience with
items are as follows: "People in our organiza the company. Discussion among the managers pro
ple
tion get information about the organization's per duced quality, cost, and time to delivery (schedule)
formance in a timely fashion" and "We get as criteria that could be used to evaluate the per
information into the hands of frontline so formance of all work units.
Although a uniform
people
can make decisions" for informa tracking system was in place at this
they responsible performance
we chose to use to
tion sharing; "We create structures and procedures company, managerial judgments
that encourage and expect people to take initiative measure performance for a number of reasons.
in improving organizational performance" and "We First, the goals for projects were often very specific
create new structures, and practices that and highly technical, so direct comparison of work
policies
help people use their knowledge and motivation" units was not possible. In addition, the true com
for autonomy through boundaries; and "We use plexity or difficulty of a project might not become
teams as the focal point of responsibility and ac clear until the project has been worked upon for
in our organization" and "We work some time. Such differences in task difficulty can
countability
hard in our organization to develop effective, self obscure true
performance differences. Finally,
directed teams" for team responsibility and ac project goals were set by the second-level manag
All items in the measure were rated ers, who might vary in the extent to which they
countability.
from 1, "almost never," to 7, "almost used goals as realistic targets or as "stretch" objec
always."
2004 Seibert, Silver, and Bandolph 339
FIGURE 2
Results of Second-Order Confirmatory Factor Analysis41
correlation between empowerment climate and tion coefficient, which indicates the proportion of
psychological empowerment equal to one. The between-groups variance relative to the total vari
change in chi-square test (A*2 = 150.3,Ad/=l,p< ance exhibited by a variable (Bryk & Raudenbush,
.01) showed that the two-factor model provided a 1992). This statistic represents the maximum
significantly better fit to the observed data, provid amount of variance in a level 1 variable that could
ing support for Hypothesis 1. potentially be explained by a level 2 predictor vari
Aggregation of empowerment climate data. To able. Our calculation showed that 20 percent of the
assess the viability of aggregating individual-level variance in psychological empowerment existed
data to the work-unit level, it was necessary to between work units in this sample. Finally, we
demonstrate both between-units variability and used an intercepts-as-outcome model with empow
within-unit agreement (Hofmann, 1997; Hofmann erment climate as the level 2 predictor and psycho
& Stetzer, 1996; Klein et al., 1994; Naumann & logical empowerment as the level 1 outcome to test
Bennett, 2000). We assessed between-groups vari Hypothesis 2. The results indicated a significant,
ance in the work-unit-level empowerment climate positive relationship between empowerment cli
construct using a one-way of variance. The mate and psychological = t
analysis empowerment (y01 .49;
=
ANOVA indicated significant between-groups vari [46] 4.17, p < .01). The amount of variance
ance in empowerment climate = climate can be calcu
(F[47, 237] 3.20, explained by empowerment
< = The calculated from the lated the variance for
p .01, T]2 .38). ICC(l) by comparing component
ANOVA was .28. This value is at the high end of psychological empowerment in a model without
what can be expected in applied research settings empowerment climate to one in which empower
(Bliese, 2000). Together, these statistics show ac ment climate is included. This reduction in vari
ceptable levels of within-group agreement and be ance calculation indicated that empowerment cli
tween-groups variability in empowerment climate mate explained 62 percent of the between-groups
as a work-unit-level variable. variance in psychological empowerment. Since 20
Hypothesis 2. The next set of analyses was con percent of the variance in psychological empower
ducted to test Hypothesis 2, a cross-level hypothe ment existed between groups, these results indi
sis, which states that empowerment climate, a level cated that empowerment climate explained 12.4
2 variable, will be positively related to psycholog percent of the total variance in psychological em
ical empowerment, a level 1 variable. Since a powerment. Thus, Hypothesis 2 was supported.
group-level variable can explain only differences Hypothesis 3. Hypothesis 3 predicts a positive
between groups, the first task of a hierarchical anal relationship between empowerment climate and
ysis is to show that significant between-groups work-unit performance. Examination of the top half
differences exist for the dependent variables of in of Table 1 provides support for this work-unit-level
=
terest (Hofmann, 1997). Thus, we ran a null hierar hypothesis [r .33, p < .05). Work units that ex
chical model is, a model
(that with no level 2 perienced a more empowered climate had higher
explanatory variable) with psychological empower performance as rated by the second-level managers.
ment as the level 1 dependent variable. The results Because the 48 work-unit performance ratings
provided evidence of significant between-groups were provided by 16 second-level managers, they
variance in psychological = exhibited Hierarchical linear
empowerment (t00 .16, nonindependence.
= < and further can be used to control for the lack of
df= 47, x2 110.32, p .01) justified modeling
cross-level analyses. The null model also provided independence in the dependent variable caused by
information for computing the intraclass c?rrela nesting within raters (Bryk & Raudenbush, 1992).
TABLE 1
Means, Standard Deviations, and Correlations9
a =
Work-unit-level means, standard deviations, and correlations [n 48) are above the individual-level means, standard
diagonal;
= are below
deviations, and correlations [n 285) the diagonal. Team performance data were collected at the group level of analysis only.
< .05
*p
< .01
**p
342 Academy of Management Journal June
Treating raters as a second-level effect allows an variance existed in the dependent variables of in
analyst to more accurately estimate the relationship terest. Two separate null hierarchical models pro
between first-level variables, in this case the rela vided evidence of significant between-groups vari
climate and work ance for individual =
tionship between empowerment performance (t00 .28, df- 47,
unit performance. Consistent with the correlational = < and satisfaction =
X2 165.61, p .01) job (t00 .20,
results reported above, results from the hierarchical = = < Calculation of the
df 47, x2 89.35, p .01).
linear model indicated a significant relationship interclass correlation coefficient showed that 32
between empowerment climate and work-unit per percent of the variance in individual performance
= =
formance (y01 .48; t [15] 3.15, p < .01). The and 13 percent of the variance in job satisfaction
calculation for reduction in variance showed that existed between groups in this sample.
empowerment climate explained 22 percent of the In order to test the direct relationship between
variance in work-unit performance when rater ef empowerment climate and the two outcome vari
fects were controlled. ables, we ran two separate intercepts-as-outcomes
Hypotheses 4a and 4b. Hypothesis 4a and 4b models with empowerment climate as a level 2
respectively predict a positive relationship be predictor and individual performance and job sat
tween empowerment and individual isfaction as the level 1 outcomes, respectively. The
psychological
and job satisfaction. The correlations results using individual performance failed to
performance
= =
in the bottom half of Table 2 support this individ reach significance (y01 .08; t[46] 0.48, n.s.),
ual-level empowerment indicating no support for a direct relationship be
hypothesis. Psychological
was significantly and positively related to individ tween empowerment climate and individual job
=
ual performance (r .15, p < .05) and job satisfac performance. The results for job satisfaction were
= =
tion (r = .54, p < .01). significant (y01 .70; t [46] 5.75, p < .01), indi
cating that empowerment climate was positively
and significantly related to job satisfaction. The
Hypotheses 5a and 5b
computation based on the reduction in unex
The next set of analyses were conducted to test plained variance in this model relative to the null
5a and 5b, two cross-level mediation model showed that empowerment climate ex
Hypotheses
hypotheses stating that psychological empower plained 98 percent of the between-groups variance
ment (a level 1 variable) will mediate the effects of in job satisfaction. Since 13 percent of the variance
empowerment climate (a level 2 variable) on indi in job satisfaction existed between groups, these
vidual and satisfaction (level 1 results indicated that empowerment climate ex
performance job
variables). It is necessary to meet three precondi plained 12.7 percent of the total variance in job
tions to support a mediation hypothesis (Baron & satisfaction.
Kenny 1986; see Hofmann and Stetzer [1996] for an The second
precondition for mediation was a
example using a two-level model). One must estab positive relationship between empowerment cli
lish significant relationships between the indepen mate and psychological empowerment. Recall that
dent variable and the dependent variable, between this relationship was our Hypothesis 2 and that
the independent variable and the mediating vari evidence of a significant, positive relationship be
able, and between the mediating variable and the tween these two empowerment constructs was pro
dependent variable. Here, empowerment climate vided there. The third precondition for mediation
had to be positively related to individual perfor was the presence of positive relationships between
mance and job satisfaction; empowerment climate psychological empowerment and both individual
had to be positively related to psychological em performance and job satisfaction. These two rela
and empowerment had tionships were supported in our tests of Hypothe
powerment; psychological
to be positively related to individual performance ses 4a and 4b. Thus, Baron and Kenny's (1986)
Given these three three preconditions for mediation were met for job
and job satisfaction. conditions,
support for the mediation hypotheses would be satisfaction (Hypothesis 5b) but not for individual
provided if the relationship between empowerment performance (Hypothesis 5a).
climate and individual performance or job satisfac To test for the mediation effect specified in Hy
tion were no longer significant when pothesis 5b, we used a random-intercepts hierar
psychological
was included in the model. chical model with psychological empowerment as
empowerment
The first precondition for mediation, the direct a level 1 predictor and job satisfaction as a level 1
relationship between empowerment climate and dependent variable. Examination of the variance
(1) individual performance and (2) job satisfaction component this model
from indicated that the
is itself a cross-level relationship. We therefore first between-groups variance in job satisfaction failed
needed to show that systematic between-groups to reach significance when psychological empow
2004 Seibert, Silver, and Bandolph 343
erment was used as a level 1 predictor = self. Our factor analysis showed that
(r00 .05, x2 confirmatory
=
[47] 50.52, n.s.). Further analysis using the level the dimensions of empowerment climate loaded
2 variable was not justified (Hofmann, 1997). That onto a single higher-order factor that was distinct
is, after psychological empowerment was entered from psychological empowerment. The high level
as a level 1 explanatory variable, empowerment of within-group agreement in employee percep
climate was no longer a significant predictor of job tions of empowerment climate suggests that these
satisfaction because there was not a significant perceptions are important understandings that
amount of
between-groups variance to be ex work-unit members share concerning organiza
plained. Thus, psychological empowerment fully tional structures,
policies, and practices related to
mediated the significant effect of empowerment cli empowerment. The use of mean work-unit percep
mate on job satisfaction. tions is a strength of the climate approach because
Kenny, Kashy, and Bolger (1998: 260) noted that mean ratings tend to cancel out both random vari
step 1, in the present case establishing a direct ance in individual and systematic dif
responding
relationship between empowerment climate and ferences that may contaminate individual percep
individual performance, is not required to demon tions, such as an individual's background, previous
strate mediation. Only steps 2 and 3 are essential. experiences, and personality (James, James, &
Since empowerment climate is significantly related Ashe, 1990). Thus, aggregate perceptions are likely
to psychological empowerment and psychological to have yielded a more accurate representation of
empowerment is significantly related to individual work-unit context, and they allowed us to examine
job performance, our results demonstrate what relationships specified at a level of analysis above
might best be termed an indirect relationship be the individual, something rarely done in the em
tween empowerment climate and job performance powerment literature. We found a positive relation
mediated by psychological empowerment. ship between empowerment climate and work-unit
performance, as hypothesized. We also found em
powerment climate positively related to between
DISCUSSION
group differences in psychological empowerment,
Most authors view the process of empowerment as hypothesized. These findings provide initial ev
as a change in employees' intrinsic motivation re idence for the construct validity of empowerment
sulting from changes in organizational structures, climate at the work-unit level of analysis and jus
policies, and practices. Yet, to date, this fundamen tify future research with the construct.
tal insight into the multiple-level nature of empow Empowerment climate explained 22 percent of
erment has not been made
theoretically explicit the variance in work-unit performance in this
and empirically tested. The current work is the first study. The specific dimensions of the empower
empirical study we are aware of to integrate the ment climate scale suggest a number of processes,
macro and micro views of empowerment found in decision work-unit coordina
including quality,
the literature. To accomplish this integration, we tion, and work-unit potency, that could account for
developed empowerment climate as a work-unit the explained variance. Examination of each pro
level construct conceptualized as employee per cess related to work-unit performance was beyond
ceptions of the managerial practices associated the scope of the current study but would be justi
with empowerment. Our
results support the multi fied in future research by the moderately strong
ple-level conceptualization implicit in the litera results reported here. An even finer-grained under
ture and suggest that empowerment climate must standing of work-unit performance could be gained
be considered an important aspect of an organiza by examining the unique effects of each dimension
tion's effort to foster employees' experiences of of empowerment climate on each process variable
psychological empowerment. We have shown that or on other work-unit outcomes such as coopera
work-unit empowerment climate is positively re tion and cohesiveness. However, we found the av
lated to work-unit performance outcomes. Our re erage intercorrelation among the three dimensions
sults also indicate that psychological empower of empowerment climate to be quite high (average
ment mediates the effects of empowerment climate r = .76). Improvement in the discriminant validity
on job satisfaction and is a link in an indirect rela among the dimensions of empowerment climate
tionship between empowerment climate and job will be necessary before such an examination will
performance. Our findings have important impli be possible.
cations for advancing empowerment theory and In the current study, 20 percent of the variance in
practice. psychological empowerment was manifest between
Perhaps our most important findings concern the groups. This finding necessarily that there
implies
validity of the empowerment climate construct it was a significant degree of within-group clustering
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