Effect of employee empowerment on organizational performance in the BPO industry in Davao City

Abstract

This study investigates the influence of employee empowerment on organizational performance within the business process outsourcing (BPO) industry in Davao City. Drawing upon Kanter's theory of structural empowerment, the research examines the interrelationships among critical dimensions of employee empowerment, such as access to information, resources, a supportive work environment, and opportunities for learning and development, and their impact on organizational performance indicators such as employee commitment, productivity, and retention. Empirical data were gathered from surveys administered to 100 BPO employees in Davao City. They employed regression analysis to establish correlations between empowerment and organizational performance indicators. The results reveal significant positive associations between employee empowerment and organizational performance, particularly emphasizing the critical role of a supportive work environment in employee retention. This study stresses the significance of empowerment initiatives for organizational success. It provides actionable recommendations for HR professionals, leaders, and researchers to enhance employee empowerment and organizational effectiveness in the BPO sector.