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Impact of Psychological Empowerment on Nonfinancial Performance

Keywords: Empowerment , Psychological Empowerment , Performance , Nonfinancial Performance , Balanced Scorecard

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Abstract:

This study examines the effects of psychological empowerment on nonfinancial performance of organizations. The sample of the research consists of 70 employees of an enterprise serving in health sector. “Impact”, “competence” and “meaning” dimensions for psychological empowerment and “customer perspective”, “internal processes perspective” and “learning and growth perspective” dimensions for nonfinancial performance are derived from factor analysis. There is a significant negative relationship between internal processes perspective, one of nonfinancial performance dimensions, and impact dimension, one of psychological empowerment dimensions. Moreover, there are significant positive relationships between learning and growth perspective, one of nonfinancial performance dimensions, and psychological empowerment, impact dimension and meaning dimension of psychological empowerment. According to regression analysis, psychological empowerment does not have impact on nonfinancial performance.

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