In recent years, the concept of empowerment has become prominent in management literature. Empowerment is the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they become influential contributors to the organization's goal attainment. This study first defines empowerment concept. Then, such topics as the major reasons for the practice of empowerment, factors which affect the effectiveness of empowerment and the problems that may exist in the application of empowerment process are discussed. The study concludes that empowerment leads to the changes in employee' beliefs- from feeling powerless to believing strongly in their own personal effectiveness. As a result of it people take more initiative and persevere in achieving their goals and visions even though they may face some obstacles. To foster empowerment, management must create an environment in which everyone feels they have real influence over performance standards and business effectiveness within their areas of responsibility.