ABSTRACT
This chapter discusses the psychological impact with regards to employee empowerment as an organisational strategy for both Large and Small Organisations. In large organisation, the chief executive officer (CEO) assumed that most employees including people in management and non-management positions would buy into the vision and the aims of Empowerment Programme (EP), which was not the case. From the motivational perspective, large organisation did not pay attention to the psychological implications of employee empowerment with regards to the self-efficacy and self-esteem of employees. It is not necessary that psychological empowerment means people have more power in the political sense, as in having more power, but rather that people feel powerful and confident within, as in feeling more powerful. Furthermore, from the psychological point of view, devolving responsibility can also be a mechanism for helping employees to be self-confident. In many instances, instead of gaining greater power, employees just assume higher levels of accountability together with unwanted responsibility or responsibilities.
