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This thesis explores the use of employee empowerment as a means of improving organizational competitiveness in the marketplace. The methodology used is a case study of a small, private-sector company that used this strategy to improve its productivity, product quality and profitability. The results of this research were then examined to determine whether the successful practices identified in this organization can be applied to Air Force attempts to adopt employee empowerment. The paper summarizes the organizational characteristics generally present where employee empowerment has been successfully implemented, as reported in current management literature, including the following: company culture conducive to empowerment, effective employee training, on-going management-employee communications, flattened organizational structures and salary and reward systems that compensate empowering behavior.