Employee Involvement and Its Impact on Employe Empowerment: The Study of Banking Industry in Srilanka Jaffna (A Comparative Study of Private Banks and State Banks)

Purpose: To examine the impact of employee involvement on employee empowerment. Design/methodology/approach: A questionnaire derived from previous studies and the relevant Literature was completed by 100 staffs of both private and state banks in Jaffna district, Sri Lanka. Single linear regression analysis assessed the impact on employee empowerment of four key constructs of employee involvement such as knowledge, information, rewards and power. Correlation analysis was carried out to examine the interrelationship between employee involvement and employee empowerment. And also, independent sample T-test and independent sample one-way ANOVA were utilized to find out the signification mean different in employee empowerment among personal demographic variable. Findings: employee involvement contributes significantly to employee empowerment and predicts 41.6 percent of the variation found. Rewards and power in the employee involvement contribute significantly to employee empowerment. But employee empowerment is not contributed significantly by knowledge and information in the employee involvement. And also, there is a significant mean different in Employee empowerment among the private banks and state banks. But there is no significant mean different in employee empowerment among different age groups. Overall association between employee involvement and employee empowerment is moderate positively correlated. Research limitations/implications: This research focuses on banking services in one particular district of the country. Therefore, further research in other sectors may be necessary before generalization can be made on. Practical implications: Based on the finding of the study, there are a few key points that can be used to conclude this research paper. It is very important that the employee involvement in the banking service industry in Jaffna peninsula contributed to the employee empowerment. Mainly reward and power dimensions in the employee involvement contribute to the employee empowerment for becoming effective one. Originality/value: reinforces and refines the body of knowledge relating to employee empowerment in service industries. Keywords: Employee involvement, employee empowerment and banking service providers. Paper type: Research paper.