Abstract
This paper empirically examines the role of psychological empowerment on human resource-related performance outcomes among Generation Y employees in the hotel industry in Sri Lanka. Data were gathered from 254 Generation Y employees in 67 hotels using a structured questionnaire. These data reveal a significant positive relationship between psychological empowerment and human resource outcomes, except for turnover intention. The findings provide crucial insights for hotel managers as they design empowerment structures and strategies to heighten human resource-related performance outcomes that may lead to competitive advantage. This study is limited to Generation Y employees in the hotel industry in Sri Lanka.