IOSR Journal of Business and Management (IOSR-JBM)

e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 18, Issue 2 .Ver. II (Feb. 2016), PP 01-14

www.iosrjournals.org

DOI: 10.9790/487X-18220114 www.iosrjournals.org 1 | Page

Employee Empowerment & Its Impact on Restaurant Business in

Bangladesh

Saima Akter Lecturer, School of Business, University of Information Technology & Sciences (UITS), Bangladesh,

Abstract: Empowerment is a concept that attempts to shift employees working attitudes by instilling in them a

genuine dedication to reach organizational goals and attain a high quality service. The present research has

been undertaken in order to determine the factors affecting employee empowerment by employing sophisticated

multivariate technique- Varimax Rotated Factor Analytical Technique. The study is based on the primary data

collected from respondents with the help of structured questionnaire. Data analysis has been done using SPSS

software. The statistical analysis method employed in this study is Factor Analysis. After the analysis, it is found

eight factors of employee empowerment that are positively effect on service quality as well as overall

organizational prospect. The factors are: Reward & Recognition, Career enrichment & accountability,

Suggestion Scheme & Team briefing, Trust, Autonomy, Delegation of Authority, Quality circles & Open

communication, Self Management.

Keywords: Employee Empowerment, Service quality & Restaurant Business.

I. Introduction Growth and excellence in service sector is a symptom of development of economy. Service sectors are

no a days covering prior share of world wide business demanding more sophistication,skill,quality in a highly

competitive edge. Service providers are now more keen to quality improvement for sustainable

success.Bangladesh is one of the fast growing economies in the world with GDP growth of more than 6%.

Service sector are blooming very significantly over last decade.

The word restaurant coined from the French origin means‟ restore‟. During French Revolution

independent chefs set off the ideas of dining out. By the of time the business has become very service intensive

in terms of good cook, good embiance,prompt and heartily entertainment etc. It is now a big and prospective

industry and definitely as highly competitive market.The special feature of a service industry is the contact and

interaction between service providers (employees) and service acceptors (customers). The quality of the service

encounter plays an important role for the operation practice of a corporation. Therefore, how to provide better

service and retain customers is the key to competitiveness.Employees in a service organization and particularly,

those who have frequent contacts with the customer usually serve as representatives of both the organization and

their products or services to the customer at contact point. The quality of the service and the satisfaction the

customer may derive will be an assessment of the entire service experience. Employees who are empowered in

an organization can either portray a positive or negative picture to the customers.

Since the food service industry is seen as labor-intensive, the employees‟ contribution to create and

deliver quality for customers is definitely significant. Employers, therefore, should thrive to engage their

employees into the process of improving quality. The recent increase in competition in organizations has

necessitated the need to put in place several strategies to improve quality. One such strategy is employee

empowerment. Others include employee satisfaction, employee involvement among other strategies. Employee

empowerment has impact on service quality as regards service delivery because employees have the most direct

influence on the customers perception of the service, service quality and feeling of satisfaction or dissatisfaction

among other things. With the autonomy and necessary support needed to perform, employees can go a long way

to making a difference (Gronroos, 2001).

Employees in service organizations portray the quality of service customers derive since they have

frequent contacts with the customers. With adequate empowerment, they present a better picture of the

organization to these customers. Besides, the fact that customers‟ demands are constantly increasing in regard to

quality improvement of products and services also poses difficulties for enterprise to ensure their sustenance and

growth. Dale, Wiele & Iwaarden (2007, 3) points out that quality is not only considered a competitive weapon it

once was but also is now regarded as a given requirement and an entry-level characteristic to the marketplace.

Therefore, the quest for effective quality management has become a top-most objective desired for managers

today. According to Vecchio (2000, 104), employee empowerment refers to a set of motivational techniques that

are designed to improve employee performance through an increased level of employee participation and self-

determination. Similarly it is defined as organizational arrangements that give employees more autonomy,

discretion and decision-making responsibility (Buchanan & Huczynski 2004, 285). In order words, lower level

Employee Empowerment & Its Impact On Restaurant Business In Bangladesh

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employees are given more power, responsibility and freedom to make choices about how to perform their job

and how to deal with any of their work-related problem, hence influence organizational outcomes.

In our country there is a common attribute in restaurant workforce that rarely a bondage or agreement

maintained between employers and employees. So there is a tendency to switch or leave work place. But steady

and experienced workforce is a prerequisite for quality service providing. In this regard empowerment can bring

a positive effect for retain them in organization. Gazzoli, Hancer & Park (2010, 58) mentioned that if

employees feel a high level of empowerment they would be more satisfied with their jobs and have a better

sense of task control, which could facilitate employees‟ work actions that are required to boost the service

quality of their workplace. Thus, empowerment really can be seen as a key determinant of quality of service and

customer satisfaction (Chow et al. 2006).

II. Literature Review

The restaurant industry is a demanding sector that stresses the provision of high-level customer service

and continuous quality improvement. As lifestyles change and dining out becomes more and more

commonplace, customers desire new flavors, comfortable ambience and pleasant memories. What is more, they

prefer an excellent overall dining experience. Dining experience is comprised of both tangible and intangible

elements. While tangible elements can easily be improved, the intangible part of restaurant service requires

considerable attention. Researchers have noted that the ability to deliver high quality service will provide long-

term financial viability and sustainable business success (Keiser, 1988). Hence, restaurants that provide

customers with quality services can gain a stronger competitive position in today‟s dynamic marketplace.

As restaurant business is very much service oriented business, so like all other service trades

concentration on quality human resource output shall bring out the success. Empowerment can play as a vital

instrumental in this regard. Empowerment is one of the most promising concepts in the business world that were

considered less And despite much talk about the benefits of empowerment exploitation of it weak and the

insignificant but now it has become a matter of days (Ghorbanizade& et al, 2009)

One of the important factors in the survival and existence of organization is empowerment quality of

manpower. In other words, importance of human resources is more than financial and material resources. The

role of human an efficient resources competent and wise in achieve organizational goals is undeniable. Human

resource is the most important, and most expensive, is the most valuable asset of an organization. Qualified

human resources, creates the organization strong. Empower organization is an environment that employees in

different groups in performing work together. In 70 a greater interest appeared in industrial democracy that

focuses on workers partnership rights. And use support of legislators for guidance expensive in most Western

European countries except Great Britain. Around the 80's, new forms of participation that are less amenable to

the concept developed jointly negotiating with greater emphasis on employee involvement in quality circles,

team and participate in the benefits justified as part from a larger series of reforms. The main thing about these

plans is that they did not challenge the prerogative of management. It was in the late 90's that empowerment

appear in new form. In this concept empowerment is consider in political field and special business. Logic of

firm that show movement to political rights in Western Europe and America, has been underpinning the new

management approach. The main message was the need to move from purely rational model, which was run by

accountants and engineers manage the simple intuitive models, summed up "Productivity through employees ''

autonomy and entrepreneurship," the new philosophy that when combined with "customer is king “concept,

create Current theories of empowerment. Empowerment, is not only giving power to employees but cause

employees with learning the skills and motivation, could improve their performance. Empowerment is to

provide the necessary resources available to employees and empowerment of development process. "Important"

is also meant to strengthen impression that cause employees to solve problems and improve the capacity of

political vision and social of staff and Enable them to identify environmental factors under control

(Soofali,2003) . empowerment is an important strategy for the development of the organization that in recent

years considered by all those involved with organization . Empowerment is Opportunities that give to

individuals to self-selection, accountability and participation in decision-making in organization. Empowerment

means that providing for people, freedom and necessary information to do what they want to do successfully.

"According to the definition that proposed about empowerment, key component of empowerment, is giving

freedom to employees in activities related to their job. Benefits that can be achieved in this regard include: -

Independent functioning for staff to improve quality and make better use of creative activities - Careers

Enriching - Possibility of express detailed job description - Strengthening and support the team - Increasing the

organization's competitiveness by creating intellectual capital - Create the options and increase the independence

of the decision-making and decision-making - Providing freedom and independence in decision-making.

The concept of empowerment can sometimes raise suspicions among mangers since it requires them to

change the way they think and do their jobs. This concept requires them to give up a portion of their control an

authority while at the same time being accountable for their actions and decisions. They must learn to trust their

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employees with some of their power and develop a respect for the decisions the employee makes. At the same

time these managers must be willing to accept their new role and perhaps a decrease in their authority

(Sternberg, 1992,Feb).

According to Page and Czuba (1999), the concept of empowerment has two parts. First, the group with

the power can change. In other words, power can be shifted from one group to another. If the group with the

power cannot change then of course you can‟t have any empowerment. When you can shift power from one

group to the other then it is possible to implement the concept. Second, the concept of empowerment depends

upon the idea that power can grow. This means that we shift power from one group to another and there will

always be enough so that it can be shared among different groups so that empowerment can be effective.

Generally empowerment often does not occur because managers are unwilling to give up their power. In fact,

the more they give up power, the more they get back in return, so empowerment enhances power. An

empowered employee feels a sense of loyalty to manager who gave them power.

The term empowerment has been defined in relationship to leadership and independence of the

employee regarding service encounter and is compared to the opposite approach referred to as the production

line method which is the traditional method of delegating authority to subordinates by their superiors (Deal,

2005). According to Looy, Gemmel and Van Dierdonck (2003) “empowerment means providing service

employees with enough autonomy to allow them to handle unforeseen problems situations such as complaints”.

It also refers to employees being more proactive and self-sufficient in assisting an organization to achieve its

goal (Herrenkohl, Judson and Heffner, 1999). Empowerment means encouraging people to make decisions with

the least intervention from higher management (Handy 1993).

Empowerment enables the managers to perform and help others working under them to achieve

through successful work systems. Ripley and Ripley (1992) and Spatz (2000) stated that empowerment can

enhance the responsibilities as well as motivation of employees in their routine work, improve satisfaction level,

quality of services, employees‟ loyalty and productivity. It also gives them a feeling of self respect that is worth

a lot and ultimately increases the productivity and quality of products and reduces employee turnover. Gronroos

lists the benefits of employee empowerment in service organizations as:

a) Quicker and more direct response to customer needs

b) Quicker and more direct response to dis-satisfied customers in service recovery

c) Employees are more satisfied with their jobs and feel better about themselves

d) Employee will treat customers more enthusiastically

e) Empowered employees can be a valuable source of new ideas.

Empowering employees can increase their job satisfaction as well as boosting the efficiency and

productivity of front desk operations. According to Zeithaml, Bitner and Gremler (2009), it is a company‟s

responsibility to give employees the tool needed to make decisions using their own common sense. In this way

employees are able to use empowerment responsibly so that in most cases they will not have to involve their

managers When dealing with everyday problems.

III. General Concepts Of Empowerment:

The Definition Of Empowerment What is empowerment? There are a lot of different definitions in books and journals, and online

resources. Rappoport (1984) has said that it is easy to define empowerment when employees are not given any

but on the other hand it is used differently in different organizations and in different ways by individuals so that

it is also difficult to define. The concept of empowerment is still often debated. Zimmerman (1984) has

mentioned that it is counterproductive to try to come up with a single definition of empowerment since the very

idea of empowerment is to apply it on an individual basis depending on the situation. The definition of

empowerment according to The World Bank, is the methods used to provide groups or individuals with the

information and tools needed to make responsible choices and decisions so that these choices will result in

actions or decisions which will benefit both the individual and the company or organization. The individual will

feel that he or she is part of the decision making process and the organization benefits by becoming more

efficient and increasing its productivity. The most comprehensive definition of empowerment in the literature

can be found in Thomas and Velthouse's (1990) article entitled "Cognitive elements of empowerment: An

„interpretive' model of intrinsic task motivation". The definition they provide is: To empower means to give

power to. Power, however, has several meanings authority, so that empowerment can mean authorization

capacity. However, power also means energy. Thus to empower also can mean to energize. This latter meaning

best captures the present motivational usage of the term. Our perception is that the word empowerment has

become popular because it provides a label for a nontraditional paradigm of motivation. .change [has] forced a

search for alternative forms of management that encourage commitment, risk-taking, and innovation. The newer

paradigm involves relaxed (or broad) controls and an emphasis on internalized Commitment to the task itself. . .

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.We use the word empowerment to refer to the motivational content of this newer paradigm of management. (p.

667).

Top 10 Principles Of Employee Empowerment

Demonstrate That You Value People

Your regard for people shines through in all of your actions and words. Your facial expression, your body

language, and your words express what you are thinking about the people who report to you. Your goal is to

demonstrate your appreciation for each person's unique value. No matter how an employee is performing on

his or her current task, your value for the employee as a human being should never falter and always be visible.

Share Leadership Vision

Help people feel that they are part of something bigger than themselves and their individual job. Do

this by making sure they know and have access to the organization's overall mission, vision, and strategic

plans.Better? Include employees in the actual planning on the product and department level and ask for their

input on the overall plan. They will own the direction and surprise you with their commitment and competency.

Share Goals And Direction

When possible, involve employees in goal setting and planning. They add value, knowledge, ideas,

insight and experience that you won't find on your senior team. At the very least, involve them in goal setting on

the department level and share the most important goals and direction for your group. With the help of your employees, make progress on goals measurable and observable, or ascertain that you have

shared your picture of a positive outcome with the people responsible for accomplishing the results.

If you share a picture and share meaning, you have agreed upon what constitutes a successful and acceptable

deliverable. Empowered employees can then chart their course without close supervision.

Trust People

Trust the intentions of people to do the right thing, make the right decision, and make choices that,

while Maybe not exactly what you would decide, still work. When employees receive clear expectations from

Their manager, they relax and trust you. They focus their energy on accomplishing, not on wondering,

Worrying, and second-guessing.

Provide Information For Decision Making

Make certain that you have given people, or made sure that they have access to, all of the information

they need to make thoughtful decisions.

Delegate Authority And Impact Opportunities, Not Just More Work

Doesn‟t just delegate the drudge work; delegate some of the fun stuff, too. You know, delegate the

important meetings, the committee memberships that influence product development and decision making, and

the projects that people and customers notice.The employee will grow and develop new skills. Your plate will

be less full so you can concentrate on contribution. Your reporting staff will gratefully shine - and so will you.

Provide Frequent Feedback

Provide frequent feedback so that people know how they are doing. Sometimes, the purpose of

feedback is reward and recognition as well as improvement coaching. People deserve your constructive

feedback, too, so they can continue to develop their knowledge and skills.

Solve Problems: Don't Pinpoint Problem People

When a problem occurs, ask what is wrong with the work system that caused the people to fail, not

what is wrong with the people. Worst case response to problems? Seek to identify and punish the guilty.

Listen To Learn And Ask Questions To Provide Guidance

Provide a space in which people will communicate by listening to them and asking them questions.

Guide by asking questions, not by telling grown up people what to do. People generally know the right answers

if they have the opportunity to produce them.When an employee brings you a problem to solve, ask, "What do

you think you should do to solve this problem?" Or, ask, "What action steps do you recommend?" Employees

can demonstrate what they know and grow in the process.Eventually, you will feel comfortable telling the

employee that he or she need not ask you about similar situations. You trust their judgment.

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Help Employees Feel Rewarded And Recognized For Empowered Behavior

When employees feel under-compensated, under-titled for the responsibilities they take on, under-

noticed, under-praised, and under-appreciated, don‟t expect results from empowerment. The basic needs of

employees must feel met for employees to give you their discretionary energy, that extra effort that people

voluntarily invest in work. For successful employee empowerment, recognition plays a significant role.

Service Quality In Restaurant Business: Likewise, quality in food and beverage operations means reliably providing the food, service and

environment that matches with customers‟ expectations and where possible findings ways of adding value to

exceed expectations, with an outcome of delight (Davis, et al. 2012). Service quality is also said to play a critical

role in developing a competitive advantage; and organization should move its focus from what is „best‟

produced to what the customer „wants‟ (Luoh & Tsaur, 2007; Sureshchandar et al. 2002).

In service organizations, the human-oriented issues seem to outweigh the technology-related issues in

delivering high quality service. Consequently, it becomes essential for the management to place greater

emphasis on „high touch‟ quality management rather than „high tech‟ quality management (Sureshchandar et al.

2002). Thus, employee empowerment should be considered as a useful tool to enhance service quality. The

serive quality model consists of five major dimensions which are described in Table 1.

Table 1: The five dimensions of service (Parasuraman et al. 1991 cited Lashley 1997,154 Dimension Definition

Reliability The ability to perform the promised service dependably and

accurately

Tangibles The appearance of physical facilties, equipment, personnel

and communication materials

Responsiveness The willingness to help customers and provide prompt

service

Assurance The knowledge and courtesy of employees and their ability

to convey trust and confidence

Empathy The caring, individualised attention provided to the customer

According to Lashley (1997), three of the above element which are responsiveness, assurance and

empathy have a key role to customer satisfaction and are related to employee empowerment. They are

concerned with service process and present the opportunity to amaze customers with exceptional promptness,

attentiveness, competence, commitment and exceeding expectation. (p.54)

How Empowering Restaurant Employees

Employees are the key to the success of any business, but imagine how much more effective an

empowered employee can be for an organization. Employee empowerment means enabling staff to make

decisions and take on responsibility on their own. An empowered employee is far more likely to provide better

customer service, make decisions with the company‟s best interest in mind, and inspire their coworkers. Recent

statistics have shown that employees who feel valued by their organization or employer are 60% more likely to

be motivated to do their very best for the company.

With such high-turn over rates and demanding schedules, empowering employees within a restaurant

can be a challenge. However, managers should make it one of their top priorities to engage and empower their

staff on a daily basis.

Share Company Vision And Values A great way to begin engaging employees and giving an organization more meaning for its employees

is to share the company‟s vision. Employees who feel connected to a brand‟s values are more likely to stay loyal

to the company.

Take for example, the lessons Chipotle has shown the restaurant industry in regards to employee

engagement. Chipotle has proven to have one of the best cultures within the quick service restaurant segments

and has made every effort to continuously engage their employees. Their corporate culture is an integral part of

their business success. Chipotle has significantly changed the way companies engage their employees to build a

culture. This is all thanks to their emphasis on people, restaurateur program, and performance based

advancement.

Implement On-Going Training Training does not stop after the initial on-boarding process. To best empower and keep staff engaged

develop an on-going training program. By making the workplace a continuous learning environment you are

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likely to reduce turnover rates and empower staff to continue wanting to grow with the company. Allow

employees to cross-train into different areas of the restaurant and learn about the operation as a whole.

Communicate Progress

Employees want to know that they are doing well and making progress. Track and communicate

learning opportunities or good performance. Let staff know where they are doing well and where they need help.

Hold check-ins or one on one meeting with your staff members to let them know how they are doing and

give them an opportunity to ask any questions they may have. A good measure of time for check-ins is

holding a 30 day, 60 day, 90 day and annual review, at minimum

Utilize a logbook or checklist software program to record staff progress and communicate this information

with other managers

Use Schedules A strong work life balance is crucial to employees and a scheduling the right staff is important for the

operation. By including employees in the scheduling process you are more likely to see happier, more engaged

employees.

Develop consistent schedules and shift times for employees

Let employees know in advance when to expect schedules. Employees like to know when they will have

their next schedule. For example, if you expect to have the schedule ready every two weeks, tell your staff,

get the schedule out on time, and let your staff know if there are any changes.

Use scheduling tools. Today, there are dozens of options for scheduling staff members. More restaurants are

shifting towards using scheduling software programs and scheduling applications. This is a great tool for

restaurants that have a great number of millennial. Most restaurant software programs use apps that allow

employees to download and track their schedules. Modern scheduling tools also allow employees to shift

trade, pick up shifts and requests days.

Simplifying the scheduling process and letting employees have a say in their schedule will only further

empower employees to make decisions. Further, if employees are satisfied with their schedules they are more

likely to be happier and provide a better experience for customers.

Promote From Within

An engaged employee is more likely to want to have the best interest of the company in mind. They

also typically have the most knowledge about the restaurant, as they already know all of the ins and outs. These

are the employees that will be the best managers for the restaurant. It is important to understand the good and

bad about promoting from within and should always be considered as one of the top ways to retain valuable

employees.Ensuring employees are properly prepared to handle tasks, customers, and have gained a strong

understanding of the companies background will lead to a far more empowered employee with limitless

potential. This will create a better work environment and a more successful operation.

Different Forms Of Employee Empowerment

Employee Empowerment & Its Impact On Restaurant Business In Bangladesh

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Objectives of the Study: This study will be focused on restaurant business in Bangladesh. We will try to examine the impact of

employee empowerment on a restaurant especially on service quality. We have collected data, information and

direction from academic resources and from managers of various restaurants. The aim will be supportive by the

following objectives:

To know about the meaning of employee empowerment and its exercised in different restaurant.

To investigate the various forms of empowerment.

To determine the factors of employee empowerment on service quality in restaurant business in

Bangladesh.

Research Design Survey instruments

The data have been collected through the primary mode using a structured questionnaire containing 27

statements based on 5 point likert scale where strongly agree=2, Agree=1, Indifferent=0, Disagree=-1, Strongly

disagree=-2. The respondents are asked to indicate the empowerment initiatives that are used in their

establishment. The questionnaire has been prepared after reviewing the prior studies. The survey is followed the

literature of different authors.

Sample

We mailed the survey instrument to the managers of different restaurants.. The cover letter assured

recipients that their answers would be confidential and released only in summary form. But I did not find

satisfactory response. So, later, I went personally to the respondents of each restaurant. Finally, we have

collected 40 respondents‟ opinion through questionnaire

Variables used in the study Factors

X1 Expected roles and responsibilities are clearly defined and articulated.

X2 Personal monthly meetings are helpful for professional development and increase accountability.

X3 Regular meeting for maintaining quality held every week where all work related problem can be solved.

X4 Work environment give the opportunity to work on skills for achieving future goals.

X5 Job can be organized by regular routine at work.

X6 Allowed to make decisions regarding customer service

X7 Working environment encouraged to improve, learn, and grow every day .

X8 Excellence consistently pursued by superior.

X9 Superior always clearly indicates the specific goal.

X10 Superior emphasizes on quality work performance.

X11 Free flow of information.

X12 Freedom of making decision that is the best way to do the work

X13 Employee opinion and suggestions‟ are gathered by team briefing.

X14 Employees receive appropriate rewards for their innovations and outstanding

performance

X15 Can offer suggestions to improve quality.

X16 Employees are accustomed to self-management.

X17 Each and everyone is capable of solving his/her own problems.

X18 Trust-oriented culture is required for best and quick decision making process.

X19 Employee involvement on decision making process.

X20 Can express or communicate innovative idea with the manager about any big decision.

X21 maintain the standards for the service quality in the restaurant

X22 Decision can be make independently.

X23 Employees have enough power and responsibility.

Statistical Test Factor Analysis:

The factor analysis has been used to analysis the empowerment determinants by employees of

restaurant. The Principal Components Analysis has been used to explore and confirm the inter-relatedness

between the occurrences of variables pertaining to empowerment. The number of principal components to be

retained has been decided based on Kaiser‟s criterion of Eigen value>1 and Bartlett‟s test. The Bartlett‟s test of

significance led to acceptance of significant principal components. The PCA with varimax rotation method has

been used to maximize the sum of squared loading of each factor extracted in turn. It explained more variance

than the loadings obtained from any other method of factoring. The factors loaded by variables having

significant loadings of the magnitude of .5 and above have been interpreted.

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IV. Results And Discussions: Descriptive Statistics

Table:2

Descriptive statistics Mean Std. Deviation Analysis N

X1 .9250 .82858 40

X2 1.3500 .62224 40

X3 1.3000 .72324 40

X4 1.1750 .87376 40

X5 1.5250 .50574 40

X6 1.4500 .50383 40

X7 1.1500 .42667 40

X8 1.1500 .48305 40

X9 1.1250 .60712 40

X10 1.1500 .73554 40

X11 1.0000 .59914 40

X12 1.3750 .49029 40

X13 1.2000 .68687 40

X14 .8500 .80224 40

X15 .9250 .79703 40

X16 1.2250 .69752 40

X17 .8750 .60712 40

X18 .7500 .95407 40

X19 .7500 1.12660 40

X20 1.2250 .76753 40

X21 1.1250 .68641 40

X22 .3000 1.06699 40

X23 1.4250 .50064 40

Factor Analysis Reliability Analysis

The scale of measurement was tested using Cronbach α reliability test. It was found to be 0.6039 which is

considered a satisfactory level of construct reliability.

Table-3: Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items No. of Items

.6048 .6039 23

Sampling Adequacy: The tests have been conducted to know that whether the sample is adequate or not. The sampling adequacy is

depicted in table 4:

Table-4 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .537

Bartlett's Test of Sphericity Approx. Chi-Square 393.427

df 253

Sig. .000

KMO recommends accepting value greater than 0.5 as barely acceptable and Bartlett recommends the

accepting value less than 0.05.Since the accepting value for variables is .537 (more than .5) for KMO and .000

for Bartlett‟ test(less than .05), these measures indicate that the set of variables is appropriate for factor analysis

and the analysis can proceed for next stage.

Component Factor Analysis: Deriving The Factors

Factor analysis procedure is based on initial computation of a table of correlations among the variables

that is, correlation matrix. This matrix is then transformed through estimation of a factor model to obtain the

factor matrix containing the loadings for each variable on each derived factor. The table 5 contains the

information regarding the factors and the relative explanatory power as expressed by their eigen values. As per

the latent root criteria of retaining the factors, those factors should be retained that have eigen value>1. The

Eigen values, the percentage of total variance, and rotated sum of squared loadings have been shown in Table-

5.The factor matrix as obtained in the principal component analysis has also been further subjected to Varimax

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Rotation. An examination of Eigen values has led to the retention of eight factors. Thesefactorshave

accumulated for 14.665%.12.679%,9.188%,8.371%,7.354%,7.202%,6.791%,5.839% of variation. This

implies that the total variance accumulated for by all ten factors is 72.088% and remaining variance is explained

by other factors.

1.8.2.4

Scree Plot:

The application of Cattell‟s (1966) scree test (Figure. 7.1) resulted in acceptance of Factors. The Scree

plot shows the factor eigen values in descending order .The eigen values of a factor represents the variance

explained by each factor. An elbow in the Scree plot occurs at Factor 8, which indicates the point at which the

inclusion of additional factors does not contribute significantly in explaining the variance of the data set. The

results of the analysis are presented in the form of factor pattern matrix. Factors above the elbow of the plot are

retained. A set of 8 Factors that were chosen accounts for about of the v72.088% ariations in the data.

Table:5

Total Variance Explained

Co

mp

one

nt

Initial Eigenvalues Extraction Sums of Squared

Loadings

Rotation Sums of Squared Loadings

Total % of

Varia

nce

Cumulati

ve %

Total % of

Variance

Cumulativ

e %

Total % of

Variance

Cumulative %

1 6.274 27.27

7

27.277 6.274 27.277 27.277 3.373 14.665 14.665

2 1.945 8.459 35.736 1.945 8.459 35.736 2.916 12.679 27.343

3 1.848 8.034 43.770 1.848 8.034 43.770 2.113 9.188 36.531

4 1.496 6.505 50.275 1.496 6.505 50.275 1.925 8.371 44.902

5 1.358 5.905 56.180 1.358 5.905 56.180 1.691 7.354 52.256

6 1.324 5.756 61.937 1.324 5.756 61.937 1.657 7.202 59.458

7 1.201 5.220 67.157 1.201 5.220 67.157 1.562 6.791 66.249

8 1.134 4.931 72.088 1.134 4.931 72.088 1.343 5.839 72.088

9 .984 4.277 76.366

10 .854 3.714 80.080

11 .818 3.555 83.634

12 .730 3.174 86.808

13 .632 2.749 89.557

14 .527 2.291 91.848

15 .392 1.705 93.553

16 .313 1.362 94.915

17 .256 1.111 96.026

18 .245 1.067 97.093

19 .217 .943 98.035

20 .178 .772 98.807

21 .139 .606 99.414

22 .080 .350 99.763

23 .054 .237 100.000

Extraction Method: Principal

Component Analysis.

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Examining And Identifying The Significant Factors Loading:

After studying the Eigen values for the components, the next step is to study the factor matrix and the

respective factors loadings. The loadings above 0.43 have been considered for the study. For obtaining the

rotated factor matrix, orthogonal rotation method, viz, VARIMAX rotation has been used. The results are

displayed in table 6.

Table:6 Rotated Component Matrix

a

Component

1 2 3 4 5 6 7 8

X19 .866 .045 .017 -.151 .048 .085 .021 .163

X9 .741 .138 .108 .096 .224 .061 -.146 -.108

X17 .655 .350 .082 .287 .047 .082 .328 .002

X14 .594 .359 .223 .235 -.047 .147 -.039 .246

X10 .502 .429 .096 .244 .340 .340 -.114 -.145

X7 .217 .750 .062 -.170 .042 .187 -.141 -.005

X8 .483 .738 .013 -.112 .058 -.130 .092 .047

X2 -.090 .685 .203 .335 -.056 .132 .173 .133

X15 .018 .089 .814 .042 .041 .007 .030 .148

X21 .473 -.085 .602 .046 -.317 .027 .203 -.147

X1 .309 .385 .542 -.162 .373 -.057 -.176 -.077

X13 .102 .235 .500 .439 .323 .053 .097 -.130

X6 .145 -.015 .160 .815 .140 .045 .021 .207

X18 .024 .262 .362 -.583 .259 .282 .083 .170

X12 .063 -.053 .002 .055 .804 .063 .179 .045

X22 .335 .454 .231 -.014 .473 .072 -.121 .063

X23 .084 .069 -.028 -.120 .081 .833 .032 .006

X20 .423 -.023 .376 .170 .043 .570 .014 .252

X4 .036 .367 -.123 .407 -.051 .534 -.285 -.237

X5 .026 -.077 .185 .167 .120 .076 .725 -.297

X11 .101 .395 -.060 -.223 .219 -.126 .595 .152

X3 .277 .281 .110 .136 .363 .097 -.507 -.279

X16 .100 .087 .067 .084 .041 .022 -.061 .866

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 12 iterations.

Assessing Communalities

After identifying the significant factor loadings, next step is to study the communalities of the

variables, representing the amount of variance accounted for by the factor solution for each variable. It is

generally assumed that variable with communalities>0.5 should be retained for the study; the communalities of

the variables have been shown in the table 7.

Table:7 Communalities

Initial Extraction

X1 1.000 .743

X2 1.000 .699

X3 1.000 .662

X4 1.000 .741

X5 1.000 .703

X6 1.000 .775

X7 1.000 .698

X8 1.000 .822

X9 1.000 .676

X10 1.000 .770

X11 1.000 .661

X12 1.000 .695

X13 1.000 .643

X14 1.000 .673

X15 1.000 .697

X16 1.000 .785

X17 1.000 .758

X18 1.000 .722

X19 1.000 .812

X20 1.000 .740

X21 1.000 .759

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X22 1.000 .619

X23 1.000 .729

Extraction Method: Principal Component

Analysis.

Factor Analysis Results

The principal component analysis using varimax rotation of twenty seven variables has led to the

extraction of ten factors. Following tables represent the final results of the study and reflects the extraction of

the factors that are considered more influential by the respondents.

Factor Analysis

The rotated factor matrix has been shown in Table-6. This shows that variables understudy have

constituted ten groups factors. These have been discussed in the following paragraphs.

Factor-I: Reward & Recognition

Factor-I explains 14.665% of the total variations existing in the variable set. This includes variables- X19, X9,

X17, X14,X10. This factor has significant factor loadings on these variables which have formed this major cluster.

So, this factor provides a basis for conceptualization of a dimension, which may be identified as Reward,

Recognition factor

Factor-II: Career Enrichment & Accountability

Factor-II explains 12.679% of the total variations existing in the variable set. This includes variables- X7, X8, X2.

This factor has significant factor loadings on these variables which have formed second important cluster. So,

this factor provides a basis for conceptualization of a dimension, which may be identified as „enrichment &

accountability factor‟

Factor-III: Suggestion Scheme & Team Briefing

Factor-III explains 9.188% of the total variations existing in the variable set. This includes variables- X15,X21, X1,

X13 This factor has significant factor loadings on these variables which have formed third cluster. So, this

factor provides a basis for conceptualization of a dimension which may be identified as ‘Suggestion Scheme &

Team briefing Factor‟. Factor-Iv: Trust

Factor-IV explains 8.371% of the total variations existing in the variable set. This includes variables- X6, X18,

This factor has significant factor loadings on these variables which have formed fourth cluster. So, this factor

provides a basis for conceptualization of a dimension, which may be identified as „Trust Factor’. Factor-V: Autonomy

Factor-V: explains 7.354% of the total variations existing in the variable set. This includes variable – X12,

X22.This factor has significant factor loadings on these variables which have formed fifth cluster. So, this factor

provides a basis for conceptualization of a dimension which may be identified as „Autonomy Factor’. Factor-VI: Delegation Of Authority

Factor-VI: explains 7.202% of the total variations existing in the variable set. This includes variables- X12, X20

X4. This factor has significant factor loadings on these variables which have formed sixth cluster. So, this factor

provides a basis for conceptualization of a dimension which may be identified as „Delegation of Authority

Factor’.

Factor-VII: Quality Circles & Open Communication

Factor-VII explains 6.791% of the total variations existing in the variable set. This includes variables – X5, X11,

X3. This factor has significant factor loadings on these variables which have formed seventh cluster. So, this

factor provides a basis for conceptualization of a dimension which may be identified as „Quality circles & Open

communication Factor‟. Factor-Viii: Self Management

Factor-VIII explains 5.839% of the total variations existing in the variable set. This includes variables – X16, .

This factor has significant factor loadings on these variables which have formed eighth cluster. So, this factor

provides a basis for conceptualization of a dimension which may be identified as ‘: Self Management Factor’. When we ranking these factors than

Factor viii: Self Management Factor’ is most important factor that emphasize the positive effects of

employee empowerment. Self-management refers to a combination of behaviors that focus on how people

manage themselves in their work. The positive impacts- are employee become comfortable with delegating his

work and managing time., Making a commitment to lifelong learning in support of both the organization‟s goals

and his own goals, Developing personal productivity skills to manage both time and commitments than overall

quality service will be improved. This factor includes variables- X16: Express self management. This implies

that the employee of a restaurant should be self management and self directed.

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The second important factor is Career enrichment & accountability which indicates employee has the

opportunity to develop their skill and knowledge and can express their innovative idea to increase the quality of

a restaurant.

The third most important factor is Delegation of Authority where employees have full power and

responsibility to take any quick decision. And the next empowerment factors that are positively effect on

restaurant quality service in our country is Trusting people.

Quality circles & Open communication is the fifth most important factor of empowerment in case of

restaurant business in Bangladesh where meetings take place quite regularly either during work hour or outside

work. Usually they discuss about things happening during the day or in the future. They represent a much

simpler form of quality circle. Therefore, without this person the quality circles probably cannot achieve its

highest effectiveness.

The sixth factor in this ranking is Suggestion Scheme & Team briefing Together with job enrichment;

team briefing seems to be the popular initiative of employee empowerment which is used by all managers

interviewed. The frequency and the topics of team briefing vary in these restaurants. Operational issues are

usually discussed in team briefing, from which employee‟s opinions and suggestions are gathered. The seventh

factor is Reward & Recognition an appropriate reward system is important in an empowered culture since

empowering employees often requires extra effort, energy and responsibility form staff (Ro & Chen 2011,

Heathfield n.d.).The last factor is autonomy or freedom of work that means the restaurant owners have

empowered their managers and staff to be responsible for the daily running of the restaurant; and that they can

self-organize to complete their task as long as the whole company achieves its target.

V. Conclusion And Recommendation: Today employee empowerment is considered as an important issue for increasing quality service in any

organization. Service oriented business like restaurant is highly labor intensive organization where quality of the

service is very much dependent on human resource. When empowerment approaches adopted, employees

gradually would start to feel that they are valued, competent and the jobs they are doing have so great meaning

and impact, and, when legitimately empowered, they would continuously be in a mood to believe they have so

vast opportunities to apply their skills. In return they are expected to change their behaviors towards using their

talents in the work place better than before,

The purposes of this study were to determine the impact of employee‟s empowerment on restaurant

business in Bangladesh. The study findings show that the important factors are: Reward & Recognition, Career

enrichment & accountability, Suggestion Scheme & Team briefing, Trust, Autonomy, Delegation of Authority,

Quality circles & Open communication, Self Management. Among them self management and career

enrichment by skill development are the most important factors of employee empowerment.

Based on the interview result, it is likely that employee empowerment has brought to service quality

more positive effects than negative ones such as motivating staff, helping them to feel more important and

enthusiastic about their job, and be able to provide quick solution to problem at work, etc. Some drawbacks of

employee empowerment were also pointed out. For instance, employee does not give a sound decision on how

much is needed or the need of clear communication.

Empowerment requires clear and open communication in terms of service standards, leadership vision,

goal and direction. The reason is that when staff understands what constitutes a successful and acceptable

service delivery, they can do their tasks independently without close supervision (Heathfield n.d.). Throughout

the research, it can be said that the communication is quite clear and open in the restaurants participating in the

interviews; and that employees can take part in in the decision making process. There are various

communication channels between the managers and the staff discussed in this research such as employee

suggestion scheme, quality circle, team briefing and even employee performance evaluation which takes place

at least once a year, according to some respondents. The importance of clear and open communication of service

standards is obvious. Nevertheless, the researcher discovered that not many restaurants in the research have

solid service standards in their operations. Below are the response of some interviewees concerning the present

of the standards of the service quality in their restaurants. To attain high quality service training,

communication, trust-oriented culture, and recognition, feedback and rewarding is most important factor.

To be more specific, it is said that good service training not only guides and develops employees‟

service skills to provide excellent services, but also improves their confidence in the decision making process to

deliver high quality service to customers (Ro & Chen 2011). In the result of job enrichment, the interviews have

disclosed the fact that there are two different ways of training staff to deal with difficult situations used in the

respondents‟ restaurants. The first approach is to provide some problem-solving guideline to the staff

beforehand. The second approach is on-the-job training which means staff members learn when the situation

comes. The first approach seems to be more effective than the second one because when staff are well prepared,

Employee Empowerment & Its Impact On Restaurant Business In Bangladesh

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they would feel more confident, response appropriately and promptly to the problem. One of the interviewees

also expressed her concern about the on-the-job training technique.

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