Empowerment is a process of enhancing feelings of self effectiveness among employees. By identifying the conditions that foster among them a feeling of powerlessness of the organization ensures their removal by both formal organizational practices and informal techniques of providing effective information. Empowerment makes the employees motivated and committed and makes employees to aspire to do a better job because they get personally rewarded. Use of participative management, implementing merit – pay systems and job enrichment are examples of possible empowerment practices. It demands team work, information sharing and tolerance. Poor communication, centralized decision making, authoritarian leadership, low incentive/ rewards, lack of variety in job do not help in moving the organization towards empowerment.