One of the most significant factors known to affect organizational performance is employees’ level of job satisfaction ( Jiang et al., 2011; Paille, 2011; Zhang and Bartol, 2010). Extant literature suggests that job satisfaction refers to employees’ sense of fulfillment and enjoyment at the workplace, and determines their commitment to, and concern for, the organization (Hosie et al., 2013; Olcer, 2015; Top et al., 2015). Scholars have argued that job satisfaction is not only due to material factors, such as reward and promotion, but also reflects the autonomy enjoyed by employees in decision-making and implementation processes as a result of empowerment. An empowering organization emphasizes information-sharing, discretion and individual participation, thus enhancing employees’ feeling of self-confidence ( Joo and Shim, 2010; Spreitzer et al., 1997). Li et al. (2016) proposed that empowerment improves employees’ feeling of thriving at work, which can also increase job satisfaction. This explains why the relationship between employee empowerment and job satisfaction has gained much research interest, especially over the past two decades (Carless 2004; Olcer, 2015; Pelit et al., 2011; Seibert et al., 2004). In recent times, a key issue in organizational change management is how leadership and power relations can induce favorable employee responses in periods of rapid change and uncertainty (Bish et al., 2015). Based on the link between empowerment and job satisfaction, it would appear that leaders who empower their subordinates stand a better chance of gaining cooperation from their subordinates when the organization is experiencing tough changes. Yet because organizations operate in a bigger social sphere comprising various political, cultural and economic forces, the interpretation of the effect of empowerment on job satisfaction must be done in relation to the broader social and organizational contexts. This is especially urgent in transition and developing economies (Chiaburu, 2006), since very little is yet known about their social and organizational dynamics for change and innovation. Additionally, specific factors in the work environment such as management support and quality of communication affect empowerment and job satisfaction (Baird and Wang, 2010; Chiang and Hsieh, 2012), and this reinforces the importance of context when examining the relationship between the two variables. As a fast developing country, Malaysia makes a timely study of the above relationship between employee empowerment and job satisfaction. Due to high rates of employee turnover and brain drain (ESI International Asia Pacific, 2014; Wahab, 2014), this topic is of particular significance for Malaysian employers, who now face ever-increasing challenges in the areas of training, succession planning and sustainable organizational change (Beh, 2014). Especially in the cities, where there is stiff competition for skilled workforce between public and private sectors, the ability to manage and retain talent has become crucial for Malaysia’s urban organizations.