Psychological Empowerment and Job Satisfaction: Insights from Libyan Banking Sector

Mohamed Alhadi Khalil, Uğur Yozgat

Abstract


This study investigates the four psychological empowerment dimensions (competence, impact, meaning, and self-determination) and how they impact job satisfaction. Employee empowerment innovatively boosts the performance and capabilities of the organizations. This study is significant in the background of the Libyan banking sector working under uncertain conditions since the start of the Libyan civil war. This study proposed a theoretical framework with four hypotheses that established a relationship between competence, impact, meaning, self-determination, and job satisfaction. The study used a quantitative design to test the theoretical model using the psychological empowerment model of Spreitzer (1995) and job satisfaction with the Minnesota Satisfaction Questionnaire (MSQ). Five hundred thirty (530) questionnaires were distributed to 25 branches of banks in Libya and received 333 responses, out of which 327 were valid for the analysis. The data analysis was conducted using Structural Equation Modelling (SEM) using Partial Least Squares (PLS), aided by Smartpls 3 software. The results indicated that competence was insignificant with job satisfaction and all other three dimensions were positive and significant with job satisfaction even in the bureaucratic organizational structures. It is also interesting to note that lower and middle-level managers have the self-belief to contribute despite influencing the strategies.

Keywords


Psychological empowerment; Job satisfaction; Empowerment dimensions;

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References


Ashforth, B. E. (1989). The experience of powerlessness in organizations. Organizational behavior human decision processes, 43(2), 207-242.

https://doi.org/10.1016/0749-5978(89)90051-4

Bandura, A. (1977). Self-efficacy: toward a unifying theory of behavioral change. Psychological review, 84(2), 191. https://doi.org/10.1037/0033-295X.84.2.191 PMid:847061 PMCid:PMC4010856

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Carless, S. A. (2004). Does psychological empowerment mediate the relationship between psychological climate and job satisfaction? Journal of Business and Psychology, 18(4), 405-425.https://doi.org/10.1023/B:JOBU.0000028444.77080.c5

Conger, J. A., & Kanungo, R. N. (1988). The empowerment process: Integrating theory and practice. Academy of management review, 13(3), 471-482.https://doi.org/10.2307/258093

Corsun, D. L., & Enz, C. A. (1999). Predicting psychological empowerment among service workers: The effect of support-based relationships. Human relations, 52(2), 205-224.https://doi.org/10.1023/A:1016984802948

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Fernandez, S., & Moldogaziev, T. (2013). Employee empowerment, employee attitudes, and performance: Testing a causal model. Public Administration Review, 73(3), 490-506. https://doi.org/10.1111/puar.12049

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications.

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Seibert, S. E., Silver, S. R., & Randolph, W. A. (2004). Taking empowerment to the next level: A multiple-level model of empowerment, performance, and satisfaction. Academy of management Journal, 47(3), 332-349. https://doi.org/10.2307/20159585

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Thomas, G. F., Tymon Jr, W. G., & Thomas, K. W. (1994). Communication apprehension, interpretive styles, preparation, and performance in oral briefing. The Journal of Business Communication, 31(4), 311-326.

https://doi.org/10.1177/002194369403100405

Thomas, K. W., & Velthouse, B. A. (1990). Cognitive elements of empowerment: An "interpretive" model of intrinsic task motivation. Academy of management review, 15(4), 666-681. https://doi.org/10.2307/258687

Vroom, V. H. (1964). Work and motivation (Vol. 54): Wiley New York.

Zimmerman, M. A. (1990). Taking aim on empowerment research: On the distinction between individual and psychological conceptions. American journal of community psychology, 18(1), 169-177. https://doi.org/10.1007/BF00922695

Ashforth, B. E. (1989). The experience of powerlessness in organizations. Organizational behavior human decision processes, 43(2), 207-242.

https://doi.org/10.1016/0749-5978(89)90051-4

Bandura, A. (1977). Self-efficacy: toward a unifying theory of behavioral change. Psychological review, 84(2), 191. https://doi.org/10.1037/0033-295X.84.2.191 PMid:847061 PMCid:PMC4010856

Boswell, W. R., Boudreau, J. W., & Tichy, J. J. (2005). The relationship between employee job change and job satisfaction: the honeymoon-hangover effect. Journal of applied psychology, 90(5), 882. https://doi.org/10.1037/0021-9010.90.5.882 PMid:16162061

Carless, S. A. (2004). Does psychological empowerment mediate the relationship between psychological climate and job satisfaction? Journal of Business and Psychology, 18(4), 405-425. https://doi.org/10.1023/B:JOBU.0000028444.77080.c5

Conger, J. A., & Kanungo, R. N. (1988). The empowerment process: Integrating theory and practice. Academy of management review, 13(3), 471-482. https://doi.org/10.2307/258093

Corsun, D. L., & Enz, C. A. (1999). Predicting psychological empowerment among service workers: The effect of support-based relationships. Human relations, 52(2), 205-224. https://doi.org/10.1023/A:1016984802948

Deci, E. L., & Ryan, R. M. (1985). The general causality orientations scale: Self-determination in personality. Journal of research in personality, 19(2), 109-134. https://doi.org/10.1016/0092-6566(85)90023-6

Fernandez, S., & Moldogaziev, T. (2013). Employee empowerment, employee attitudes, and performance: Testing a causal model. Public Administration Review, 73(3), 490-506.

https://doi.org/10.1111/puar.12049

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications.

Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial management & data systems, 116(1), 2-20. https://doi.org/10.1108/IMDS-09-2015-0382

Herzberg, F. I. (1966). Work and the nature of man.

Jain, S., & Jain, R. (2014). Employee Empowerment in Indian Banks: An Empirical Study. Journal of Institute of Public Enterprise, 37.

Janssen, O., & Van Yperen, N. W. (2004). Employees' goal orientations, the quality of leader-member exchange, and the outcomes of job performance and job satisfaction. Academy of management Journal, 47(3), 368-384. https://doi.org/10.5465/20159587

Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits-self-esteem, generalized self-efficacy, locus of control, and emotional stability-with job satisfaction and job performance: A meta-analysis. Journal of applied psychology, 86(1), 80.

https://doi.org/10.1037/0021-9010.86.1.80 PMid:11302235

Koberg, C. S., Boss, R. W., Senjem, J. C., & Goodman, E. A. (1999). Antecedents and outcomes of empowerment: Empirical evidence from the health care industry. Group & organization management, 24(1), 71-91.

https://doi.org/10.1177/1059601199241005

Kraimer, M. L., Seibert, S. E., & Liden, R. C. (1999). Psychological empowerment as a multidimensional construct: A test of construct validity. Educational and psychological measurement, 59(1), 127-142.

https://doi.org/10.1177/0013164499591009

https://doi.org/10.1177/00131649921969785

Locke, E. A. (1976). The nature and causes of job satisfaction. Handbook of industrial and organizational psychology.

Menon, S. (2001). Employee empowerment: An integrative psychological approach. Applied psychology, 50(1), 153-180. https://doi.org/10.1111/1464-0597.00052

Miguel, M. C., Ornelas, J. H., & Maroco, J. P. (2015). Defining psychological empowerment construct: analysis of three empowerment scales. Journal of Community Psychology, 43(7), 900-919. https://doi.org/10.1002/jcop.21721

Mitchell, K. J. (2016). Employee empowerment for a multigenerational workforce: An integrative and dynamic model. Fielding Graduate University,

Oldham, G. R., & Hackman, J. R. (2010). Not what it was and not what it will be: The future of job design research. Journal of organizational behavior, 31(2‐3), 463-479. https://doi.org/10.1002/job.678

Peterson, N. A. (2014). Empowerment theory: Clarifying the nature of higher-order multidimensional constructs. American journal of community psychology, 53(1-2), 96-108.https://doi.org/10.1007/s10464-013-9624-0 PMid:24420068

Robbins, S. P. (2001). Organisational Behaviour: Concepts, Controversies and Applications Australia and New Zealand: Prentice Hall.

Saari, L. M., & Judge, T. A. (2004). Employee attitudes and job satisfaction. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management, 43(4), 395-407.https://doi.org/10.1002/hrm.20032

Sahoo, C. K., Behera, N., & Tripathy, S. K. (2010). Employee empowerment and individual commitment: An analysis from integrative review of research.

Seibert, S. E., Silver, S. R., & Randolph, W. A. (2004). Taking empowerment to the next level: A multiple-level model of empowerment, performance, and satisfaction. Academy of management Journal, 47(3), 332-349.https://doi.org/10.2307/20159585

Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of management Journal, 38(5), 1442-1465.https://doi.org/10.2307/256865

Spreitzer, G. M., Kizilos, M. A., & Nason, S. W. (1997). A dimensional analysis of the relationship between psychological empowerment and effectiveness satisfaction, and strain. Journal of management, 23(5), 679-704.https://doi.org/10.1016/S0149-2063(97)90021-0

Thomas, G. F., Tymon Jr, W. G., & Thomas, K. W. (1994). Communication apprehension, interpretive styles, preparation, and performance in oral briefing. The Journal of Business Communication, 31(4), 311-326.

https://doi.org/10.1177/002194369403100405

Thomas, K. W., & Velthouse, B. A. (1990). Cognitive elements of empowerment: An "interpretive" model of intrinsic task motivation. Academy of management review, 15(4), 666-681.

https://doi.org/10.5465/amr.1990.4310926

Vroom, V. H. (1964). Work and motivation (Vol. 54): Wiley New York.

Zimmerman, M. A. (1990). Taking aim on empowerment research: On the distinction between individual and psychological conceptions. American journal of community psychology, 18(1), 169-177.

https://doi.org/10.1007/BF00922695




DOI: https://doi.org/10.18196/jiwp.v5i2.11194

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