ABSTRACT
Employee empowerment is advocated because of its perceived psychological benefits, such as an increase in internal locus of control, self-efficacy and self-esteem of employees. Internal locus of control refers to people's perception that events which happen to them in life are primarily, though not exclusively, within their direct control and influence. Conclusions of Conger and Kanungo's studies reveal that employee empowerment has positive implications on employees' locus of control. Employees with a strong internal locus of control are more likely to feel capable of performing their tasks, and it can also lead individuals to be innovative and creative. Self-efficacy is a critical ingredient in employee empowerment, because it is to do with people's confidence in their ability to perform effectively in their empowered roles. Individuals who have high self-esteem tend to evaluate themselves positively and more favourably, because they believe they have the traits and qualities needed to do the job, and view themselves as valued resources.
