An Exploratory Study on Employee Engagement and its Impact on

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  • www.ijrmbs.com All Rights Reserved, IJRMBS 201569

    International Journal of Research in Management & Business Studies (IJRMBS 2015)Vol. 2 Issue 1 Jan. - Mar. 2015

    ISSN : 2348-6503 (Online) ISSN : 2348-893X (Print)

    An Exploratory Study on Employee Engagement and its Impact on Organizational Performance

    IPunam Singh, IIJitendra LalvaniI,IIDept. of Social Work, Sardar Patel University, Vallabh Vidyanagar, Anand, Gujarat, India

    Introduction:Employee Engagement has appeared on the management scene in a big way fairly recently. Employee engagement is the sum total of the work place behavior demonstrated by the people. Such behavior is characterized by, belief in organization, Drive to work to make things better, understanding of business context, Respect and support for others & Desire to learn new skills. The level of employee engagement affects key results such as sales, customer satisfaction, and innovation and employee turnover. An engaged workforce is capable of delivering sustained differentiation and significant competitive advantage. Managers agree that modern business demands higher productivity and more efficiency, than in previous times. Companies are trying to increase their performance in order to place their company ahead of the competitors. At some point, satisfied employees, content with their work experience, was a good formula for success, as a satisfied employee, who wanted to stay with a company, contributed to the workforce stability and productivity (Sanchez and McCauley, 2006). But those times have changed. Nowadays, the business environment is global and competitive and simply satisfied and stable employees are not enough to bring necessary business results. Satisfied employees may just meet the work demands, but this will not lead to higher performance (Abraham, 2012). In order to compete effectively, employers need to go beyond satisfaction - employers must do their best to inspire their employees to apply their full potential and capabilities to their work, if they do not, part of the valuable employees resources remains unavailable for the company (Bakker and Leiter, 2010).The importance of engagement is proven by the literature on engagement, which shows that an engaging environment pays off. Studies by a number of researchers prove that employee engagement supports organizational performance and success (Harter et al., 2002; Salanova et al. 2003). As literature claims that the outcomes of employee engagement are exactly what most organizations are looking for, there is no surprise in corporate executives seeing the development of the engagement of employees as a priority for organization (Ketter, 2008, as referenced in Shuck and Wollard, 2010). However, in his book The New Rules of

    Engagement, Johnson wrote the ability to engage employees, to make them work with our business, is going to be one of the greatest organizational battles of the coming 10 years (Johnson, 2004, p.1, as referenced in (Sange and Srivasatava, 2012). CEOs worldwide see employee engagement as one of the top five most important challenges for management (Wah, 1999).

    Objective of the Study: To study the overall employee engagement level of the

    organization To study the reasons behind engagement and

    disengagement To help the organization in improving the engagement levels

    by providing proper and timely recommendations. To study the different parameters of employee

    engagement.

    SampleThe study covers with sample of 70 employees in one of the leading manufacturing sector Anand, Gujarat. As it is well known that the employees of any organization are responsible for the organization to flourish or perish. Disengaged employees drag down companies, costing billions of dollars in lost productivity and resulting in much higher turnover rates

    The Scoring Pattern: On the five point scale there are five choices for each statement that is 5-strongly agree, 4-agree, 3-Neutral, 2-Disagree, 1-Strongly disagree. There are 51 statements that comprises with five factors and they are Job Commitment, Business, work life balance and work conditions, culture, Leadership, compensation, Interpersonal support, commutation, Growth and Development,Organisational Identification

    AbstractEmployee Engagement has appeared on the management scene in a big way fairly recently. Employee engagement is the sum total of the work place behavior demonstrated by the people. Such behavior is characterized by, belief in organization, Drive to work to make things better, understanding of business context, Respect and support for others & Desire to learn new skills. The level of employee engagement affects key results such as sales, customer satisfaction, and innovation and employee turnover. An engaged workforce is capable of delivering sustained differentiation and significant competitive advantage. The present study is undertaken at manufacturing sector of Anand city, Gujarat. The aim of the study is to know the overall level of employee engagement and its impact on organizational performance. Sample covers 70 employees in the manufacturing unit, Anand, Gujarat. The findings of the present study are that organizations have often had a focus on how to generate engagement, rather than seeking objective ways to measure it. Results therefore show that there are no deeply disengaged administrative workers in the organization. They recognize that a highly engaged workforce can increase innovation, productivity, and bottom-line performance while reducing costs related to hiring and retention in highly competitive talent markets.

    Key WordsEmployee engagement, Work place, Organization, Organizational performance, measures of Employee engagement

  • www.ijrmbs.com 2015, IJRMBS All Rights Reserved 70

    International Journal of Research in Management & Business Studies (IJRMBS 2015) Vol. 2 Issue 1 Jan. - Mar. 2015

    ISSN : 2348-6503 (Online) ISSN : 2348-893X (Print)

    Data Analysis & InterpretationTable 1.1: Job CommitmentSr. No

    Particulars Strongly Agree

    Agree Neutral Disagree Strongly Disagree

    1. I enjoy my job 28(40.00) 41(58.57) - 1(1.45) -2. I am clear about what I am expected to achieve in my job 24(34.29) 44(52.86) - 2(2.86) -3. I would volunteer to do things outside my job that

    contributes to the companys objectivise20(28.57) 35(50.00) - 15(21.43) -

    4. The policies, rules, procedures and regulations of the company that affect my job are clearly defined

    16(22.86) 43(61.43) 09(12.86) 2(2.86)

    5. I am given sufficient authority, information, resources and freedom by the organization to do my job well.

    16(22.86) 43(61.43) - 10(14.29) 1(1.43)

    6. I do feel a sense of belonging to this organization 25(35.71) 42(60.00) - 3(4.29) -7. My companys mission/purpose makes me feel my job is

    important28(40.00) 40(67.14) - 2(2.86) -

    8. My work is important to the success of the organization 37(52.86) 32(45.71) - 1(1.43) -9. My job Is viewed as important by employees working in

    other areas within this organization13(18.57) 49(70.00) - 7(10.00) 1(1.43)

    10. My job allows me to utilize the full range of my educational training, skills, abilities and previous work experience.

    22(31.43) 39(55.71) - 8(11.43) 1(1.43)

    Figure in parenthesis indicates percentage. Source Field Investigation From the above table, it can be seen that Employees who are engaged in their work and committed to their organizations give companies crucial competitive advantagesincluding higher productivity and lower employee turnover. Thus, it is not surprising that organizations of all sizes and types have invested substantially in policies and practices that foster engagement and commitment in their workforces. The employees who feel that their job is important in the organization and organization really values it will have the ample amount of Employee Engagement

    Table 1.2.About Your BusinessSr. No

    Particulars Strongly Agree

    Agree Neutral Disagree Strongly Disagree

    1. I see a strong link between my individual work goals and companys goals

    15(21.43) 48(66.67) - 7(10.00)

    2. I have a good understanding of each of my companys objectives and goals

    17(24.29) 47(67.14) - 5(7.14) 1(1.43)

    Figure in parenthesis indicates percentage. Source Field Investigation. From the above table it can be seen that Goal setting allows for a quicker execution of company strategy. Without good alignment to strategy, every bit of forward motion is a struggle. With everyone working together towards the same objectives, your company can execute strategy faster, with more flexibility and adaptability. Essentially, goal alignment strengthens your employee engagement and will work it right. Using goal alignment to communicate expectations, document progress, and identify employee strengths and weaknesses enables management to act and make strategic decisions rapidly. By ensuring that your employees understand what your organization is trying to achieve, and how his or her role - and performance - contributes to the organization's core mission, you can focus their efforts on your company's most important goals.

    Table 1.3.Work Life Balance and Work Conditions

    Sr. No

    Particulars Strongly Agree

    Agree Neutral Disagree Strongly Disagree

    1. I get stressed with the amount of work I am expected to do 4(5.71) 30(40.86) - 32(45.71) 4(5.71)

    2. The company does all it can to allow employees to balance work and personal commitments

    2(2.86) 49(70.00) - 18(25.71) 1(1.43)

  • www.ijrmbs.com All Rights Reserved, IJRMBS 201571

    International Journal of Research in Management & Business Studies (IJRMBS 2015)Vol. 2 Issue 1 Jan. - Mar. 2015

    ISSN : 2348-6503 (Online) ISSN : 2348-893X (Print)

    3. The organization provides a safe and secure working environment with proper light ventilation, space and noise to do my job effectively

    13(18.57) 42(60.00) - 13(18.57) 2(2.86)

    4. I am able to maintain an appropriate and healthy balance between my work and my personal commitments

    13(18.57) 53(75.71) - 3(4.29) 1(1.43)

    Figure in parenthesis indicates percentage. Source Field Investigation From the above table it canbe seen that the balance between the work-life and the professional life is a common talk. Personal and professional are the two roles played by a working individual. The employees have to play their role and handle their responsibility. Due to the work stress their dear ones like family, organization and society gets affected. In several professions there is considerably a high pressure of performance which in return leads to stress and other problems. The shrinking incomes, faltering economy and uncontrolled layoffs are some undeniable factors. A considerable factor is the lack of accommodation for the work-life balance, which in return can add to the stress load of the employees, especially for the working womens who are the primary caretakers of their family, childrens and old dear ones. All of these factors lead to the stressed individuals in an organization which leads to the fatigue, these individuals prone to mistakes and injuries, and are more likely to be absent. Work and professional life are the two sides of the same coin.

    Table 1.4.CultureSr. No

    Particulars Strongly Agree

    Agree Neutral Disagree Strongly Disagree

    1. I believe the organization provides equal opportunities to all

    11(15.71) 44(62.86) - 13(18.57) 2(2.86)

    2. All employees are treated as individuals regardless of age, race, gender, physical capabilities. etc

    11(15.71) 48(66.57) - 11(15.71) -

    3. My organization has a culture in which diverse perspectives and individual differences (culture, background. Etc.) are valued

    6(8.57) 45(64.29) - 18(25.71) 1(1.43)

    4. I fail to understand how companys shared (common) values apply to my work

    3(4.29) 27(38.57) - 31(44.29) 9(12.86)

    5. I feel comfortable working in my companys work environment and culture

    16(22.86) 39(55.71) - 13(18.57) 2(2.86)

    Figure in parenthesis indicates percentage. Source Field Investigation From the above table, it can be seen that organizations value what brings about the results they most desire: improved performance and overall effectiveness. The best way to accomplish this is not by looking at employee engagement alone, but also by gaining an understanding of the organizational context and culture, the employees work within. It is the combination of a healthy culture and engaged employees that is most critical to improving your organizations effectiveness and the experiences of the people in it. The equality in matters of employment and facilities will give a sense of cultural identity to the employee.

    Table 1.5.LeadershipSr. No

    Particulars Strongly Agree

    Agree Neutral Disagree Strongly Disagree

    1. My manager provides me with timely and helpful feedback on my performance

    15(21.43) 48(68.57) - 7(10.00) -

    2. I regularly receive appropriate recognition from my manager when I do a good job

    15(21.43) 44(62.86) - 11(15.71) -

    3. My manager does not involve me in the decisions that affect my job

    5(7.14) 26(37.14) - 2(2.86) -

    4. My manager work towards making this a fun and fulfilling place to work

    7(10.00) 42(60.00) - 19(27.14) 2(2.86)

    5. Senior management considers the needs and suggestions of the employees before implementing new policies

    9(12.86) 41(58.57) - 18(25.71) 2(2.86)

    6. The management really cares about my well being and respects my beliefs, ideas and opinions

    12(17.14) 44 (62.86) - 13(18.57) 1(1.43)

  • www.ijrmbs.com 2015, IJRMBS All Rights Reserved 72

    International Journal of Research in Management & Business Studies (IJRMBS 2015) Vol. 2 Issue 1 Jan. - Mar. 2015

    ISSN : 2348-6503 (Online) ISSN : 2348-893X (Print)

    7. The management style provides effective leadership and brings out the best to me

    6(8.57) 47(67.14) - 15(21.43) 2(2.86)

    8. Conflicts are not properly handled by the organization 4(5.71) 25(35.71) - 38(55.71) 2(2.86)9. The leadership team is appropriately visible and accessible to

    employees5(7.14) 51(72.86) - 14(20.00) -

    10. The management has provided a clear direction of our future 12(17.14) 46 (65.71) - 11(15.70) 1(1.43)Figure in parenthesis indicates percentage. Source Field Investigation From the above table, it can be seen that. The importance of leadership in management cannot be overemphasized. To get things done by people, management must supply leadership in the organization. Team-work is essential for realizing organizational goals. Managers must influence the team for work accomplishment through leadership. Secondly, leadership aids authority. For the better employee engagement the leaders should take the initiatives by making the employees feel the sense of belongingness and sense of commitment. The leader should make others work towards a desired goal.

    Table 1.6.CompensationSr. No

    Particulars Strongly Agree

    Agree Neutral Disagree Strongly Disagree

    1. The compensation is proportional to the contributions I make 3(4.29) 47(7.14) - 14(20.00) 6(8.57)2. The salary package, pays and perks of my company are on

    par with the best in the industry10(14.29) 35(50.00) - 21(30.00) 4(5.71)

    3. My perform...

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