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OPTIMIZING EMPLOYEE ENGAGEMENT STRATEGIES
FOR COMPETITIVE ADVANTAGE: A CASE OF
SAFARICOM LIMITED
BY
HAZEL A. OCHIENG
UNITED STATES INTERNATIONAL UNIVERSITY
SPRING 2014
OPTIMIZING EMPLOYEE ENGAGEMENT STRATEGIES
FOR COMPETITIVE ADVANTAGE: A CASE OF
SAFARICOM LIMITED
BY
HAZEL A. OCHIENG
A Project Report Submitted to the Chandaria School of
Business in Partial fulfillment of the Requirement for
the Degree of Masters in Business Administration
(MBA)
UNITED STATES INTERNATIONAL UNIVERSITY
SPRING 2014
ii
STUDENT’S DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other college, institution or university other than the United States International
University in Nairobi for academic credit.
Signed: ________________________ Date: _____________________
Hazel A. Ochieng (ID 624472)
This project has been presented for examination with my approval as the appointed
supervisor.
Signed: ________________________ Date: _____________________
Dr. Teresia K. Linge
Signed: _______________________ Date: ____________________
Dean, Chandaria School of Business
iii
COPYRIGHT
All rights reserved. No part of this project report should be reproduced in any form or by
any means including photocopying, recording without prior written authorization from
the author.
Hazel A. Ochieng © 2014
iv
ABSTRACT
The general objective of the study was to examine key employee engagement strategies
employed by Safaricom Limited and their influence on the company‟s competitive
advantage. The study sought to investigate the effect of employee-well-being on the
attainment of competitive advantage in Safaricom, the effect of HR policies and practices
on competitive advantage in Safaricom and to establish the effect of effective
organizational communication on the attainment of competitive advantage in Safaricom.
This study was a case of Safaricom Limited. The research design adopted was a
descriptive research design. The target population comprised of 160 staff in different
managerial levels at Safaricom. Stratified proportionate random sampling technique was
used to select the sample. From each stratum the study took a 30% sample to get a sample
size of 48 respondents who included top management officers, senior management
officers and low level officers within Safaricom Limited Company. The study collected
primary data using a structured questionnaire. The questionnaire collected qualitative and
quantitative data. Before the actual data collection, the researcher performed a pilot test to
determine validity and reliability of the questionnaire. Both descriptive and inferential
analysis was employed. Descriptive statistics was used to summarize the data in form of
distribution percentages while Pearson‟s Correlation analysis was adapted to measure
strength and form of the relationship between variables. The analysis was conducted with
the aid of SPSS software. The analyzed data was presented in tables and figures for ease
of understanding the results.
The study found that Safaricom had enhanced and promoted employees‟ good health and
ensuring employees wellness. The employees were also satisfied with the organization‟s
policy on work-life balance to employees. There was a statistically significant
relationship between the organization‟s competitive advantage and work fulfilment,
facilitation of good health; employees‟ wellness; creating an environment to promote
employees growth; organization‟s policy on work-life balance.
It was found that human resource programs such as short-term incentives/bonus
programs, long-term incentives or bonus, the basic salary level, benefits program and
base-salary increase highly enhanced employees‟ engagement. The company provided
continuous skill development programs and promoted training for employees to be able to
perform multiple jobs. There was a statistically significant relationship between the
v
organization‟s competitive advantage and support of employee training needs; provision
of continuous skills development programs; promoting training for employees to perform
multiple jobs; alignment of employees personal objectives to organisational objectives.
It was also found that communication practices enhanced employees‟ performance to a
great extent. It was also found out that there was a statistically significant relationship
between competitive advantage and information sharing meetings; use of circulars on key
issues of the company such as performance and strategy; cross functional teams to
promote staff interactions and collaborations; formation of staff associations and thenuse
of two way communication channels.
The study concluded that Safaricom had created an environment to promote employees‟
good health and ensuring employees wellness. It was also concluded that there was a
significant relationship between the human resource policies and competitive advantage
of Safaricom. Communication in the organization was very essential as it established a
platform under which the employees and the management share information on the
company‟s goals, targets other activities.
The study recommends that the organization should ensure that employees have the
freedom to make their work exciting and an environment that would make their work life
comfortable and fulfilling. Moreover, the human resource department should continue to
come up with more policies to enhance employees‟ engagement and enhance an open
door policy to facilitate an effective two- way communication channel among employees
at all levels.
vi
ACKNOWLEDGEMENT
I wish to acknowledge the following people without whom this research work would not
have been successful. It may not be possible to mention all by name but the following
were singled out for their exceptional contributions.
My profound gratitude goes to my supervisor Dr. Teresia Kavoo Linge for her
commitment and personal interest in the progress of this study. Her wise counsel,
encouragement, patience, constructive and innumerable suggestions made this project
come to completion.
My heartfelt appreciation and indebtedness also goes to my family for making my dream
come true. They offered me moral support during my postgraduate studies.
Finally and most importantly, I wish to thank God for bringing me this far. It has not been
easy but with Him the completion of this project and much more has been possible.
vii
DEDICATION
This project is dedicated to Mr. Evans Khisa and Eng. Joash Ochieng for their love,
support, patience, encouragement and understanding which gave me the will and
determination to complete my postgraduate studies.
viii
TABLE OF CONTENTS
STUDENT’S DECLARATION ........................................................................................ ii
COPYRIGHT ................................................................................................................... iii
ABSTRACT ....................................................................................................................... iv
ACKNOWLEDGEMENT ................................................................................................ vi
DEDICATION.................................................................................................................. vii
LIST OF TABLES ............................................................................................................. x
LIST OF FIGURES ......................................................................................................... xii
CHAPTER ONE ................................................................................................................ 1
1.0 INTRODUCTION........................................................................................................ 1
1.1 Background of the Problem ....................................................................................... 1
1.2 Statement of the Problem ........................................................................................... 6
1.3 General Objective ...................................................................................................... 6
1.4 Specific Objectives .................................................................................................... 6
1.5 Importance of the Study ............................................................................................. 7
1.6 Scope of the Study ..................................................................................................... 8
1.7 Definition of Terms.................................................................................................... 8
1.8 Chapter Summary .................................................................................................... 10
CHAPTER TWO ............................................................................................................. 11
2.0 LITERATURE REVIEW ......................................................................................... 11
2.1 Introduction .............................................................................................................. 11
2.2 Employee Well-being and Attainment of Competitive Advantage ......................... 11
2.3 HR Policies and Practices and Attainment of Competitive Advantage ................... 15
2.4 Effective Organizational Communication and Attainment of Competitive
Advantage ...................................................................................................................... 20
2.5 Chapter Summary .................................................................................................... 24
ix
CHAPTER THREE ......................................................................................................... 25
3.0 RESEARCH METHODOLOGY ............................................................................. 25
3.1 Introduction .............................................................................................................. 25
3.2 Research Design....................................................................................................... 25
3.3 Population and Sampling Design ............................................................................. 25
3.4 Data Collection Methods ......................................................................................... 28
3.5 Research Procedures ................................................................................................ 28
3.6 Data Analysis methods ............................................................................................ 29
3.7 Chapter Summary .................................................................................................... 30
CHAPTER FOUR ............................................................................................................ 31
4.0 RESULTS AND FINDINGS ..................................................................................... 31
4.1 Introduction .............................................................................................................. 31
4.2 General Information ................................................................................................. 31
4.3 Employee-Well-Being and Competitive Advantage ............................................... 35
4.4 Human Resource Policies and Competitive Advantage .......................................... 40
4.5 Organizational Communication and Competitive Advantage ................................. 52
4.6 Chapter Summary ..................................................................................................... 59
CHAPTER FIVE ............................................................................................................. 60
5.0 DISCUSSION, CONCLUSIONS, AND RECOMMENDATIONS ....................... 60
5.1 Introduction .............................................................................................................. 60
5.2 Summary .................................................................................................................. 60
5.3 Discussion ................................................................................................................ 62
5.4 Conclusions .............................................................................................................. 68
5.5. Recommendations ................................................................................................... 69
REFERENCES ................................................................................................................. 71
APPENDIX 1: QUESTIONNAIRE................................................................................ 80
x
LIST OF TABLES
Table 4.1 Years of Work in the Organization .................................................................... 33
Table 4.2 Position in the Organization .............................................................................. 34
Table 4.3 Organization Produce Higher Quality Products ................................................ 34
Table 4.4 Superior Customer Service ............................................................................... 35
Table 4.5 Fulfilling Work .................................................................................................. 35
Table 4.6 Facilitation of Good Health ............................................................................... 36
Table 4.7 Employees Wellness .......................................................................................... 36
Table 4.8 Organization Culture .......................................................................................... 37
Table 4.9 Environment Promote Employee Growth .......................................................... 37
Table 4.10 Work Life Balance on Employees ................................................................... 38
Table 4.11 Work Life Balance and Employee Performance ............................................. 38
Table 4.12 Employee Well-Being and Competitive Advantage Correlation .................... 40
Table 4.13 Basic Salary Level ........................................................................................... 41
Table 4.14 Basic Salary Increase ....................................................................................... 41
Table 4.15 Benefits and Perquisites Programme ............................................................... 42
Table 4.16 Short term Incentives ....................................................................................... 42
Table 4.17 Long-term Incentives or Bonus Programs ....................................................... 43
Table 4.18 Financial Recognition Programme .................................................................. 43
Table 4.19 Employees Promotions .................................................................................... 44
Table 4.20 Reward Programmes and Competitive Advantage Correlation ....................... 45
Table 4.21 Employee Training Needs ............................................................................... 46
Table 4.22 Skills Development Programs ......................................................................... 46
xi
Table 4.23 Mentoring Programs ........................................................................................ 47
Table 4.24 Aligning Employees Personal and Organisational Objectives ........................ 47
Table 4.25 Career Development Opportunities and Competitive Advantage Correlation 48
Table 4.26 Reward Programs and Competitiveness .......................................................... 48
Table 4.27 Retention of Talented Employees .................................................................... 49
Table 4.28 Personal Career Development and Competitiveness ....................................... 49
Table 4.29 Team Building and Maximizing Productivity ................................................. 50
Table 4.30 Team Building and Employees Commitment .................................................. 50
Table 4.31 Team Building and Competitiveness ............................................................... 51
Table 4.32 Company‟s Standard of Ethical Behaviour and Employees Engagement ....... 52
Table 4.33 Communication Channels Commonly Used.................................................... 53
Table 4.34 Information Sharing Meetings ......................................................................... 54
Table 4.35 Circulars on Key Issues ................................................................................... 54
Table 4.36 Teams to Promote Staff Interaction and Collaboration ................................... 55
Table 4.37 Formation of Staff Associations ...................................................................... 55
Table 4.38 Staff Suggestion Schemes ................................................................................ 56
Table 4.39 Two-Way Communication Channel ................................................................ 56
Table 4.40 Senior Management Communication .............................................................. 57
Table 4.41 Competitive Advantage and Organizational Communication Practices
Correlation ......................................................................................................................... 58
xii
LIST OF FIGURES
Figure 4.1 Gender of the Respondents ............................................................................... 31
Figure 4.2 Age of the Respondents .................................................................................... 32
Figure 4.3 Highest Academic Qualifications ..................................................................... 33
Figure 4.4 Employees Wellbeing and Employees Engagement ........................................ 39
Figure 4.5 Extent Human Resource Policies Enhance Employees Engagement ............... 52
Figure 4.6 Satisfaction with the Company‟s Communication Channels ........................... 53
Figure 4.7 Communication Activities and Employee Performance .................................. 59
1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Problem
Competition among businesses is a normal phenomenon in the modern global business
environment. However, in order to achieve every business‟s objective of having increased
profits and being market leaders, businesses usually employ various means to gain a
competitive advantage over their competitors. From striving to gain access to cheap
sources of energy, employing highly trained and skilled personnel human resources, to
the adoption of technology, modern businesses are utilizing all available resources at their
disposal to stay ahead of their competitors. Employee engagement is a key focus of both
entrepreneurs and academic researchers and it is a blistering issue of the modern business
environment. This is because every organization wants to gain competitive advantages
over others (Bhatla, 2011).
Competitive advantage refers to the ability gained by a business, through attributes and
resource, to perform at a higher level than others in the same industry or market
(Christensen and Fahey, 1984; Kay, 1994; Porter, 1980 cited by Chacarbaghi and Lynch
1999). A business is said to have achieved competitive advantage once it acquires or
develops an attribute or combination of attributes that allows it to perform better than its
competitors. It is also said to have achieved competitive advantage once it utilizes a value
creating strategy that is not being simultaneously utilized by any other existing or future
competitor (Barney 1991 cited by Clulow et al. 2003). Porter (2008) is of the opinion that
competitive advantage is as a result of value that an organization is able to create for its
customers which exceeds the organizations cost of creating this value. Porter (1985)
further states that there are a variety of sources of a business‟s competitive advantage.
These include: production of high quality products, provision of superior customer
service, lower costs of production compared to rivals, possession of a convenient
geographical location, products that out-perform those of competitors, producing long-
lasting goods and providing buyers more value for their money by combining good
quality, good service, and acceptable price.
2
The methods employed by an organization in order to beat rival companies and gain
competitive advantage are called competitive strategies (Porter, 1985). Even though
managers and CEO‟s of various organizations employ various methods to gain
competitive advantage over their rivals, these methods are usually tailored according to
the circumstance of each case and each company‟s position in the market. However, three
types of generic methods are generally known to be utilised as strategies to gain
competitive advantage over competitors. They include: Striving to be the market‟s low-
cost producer in the form of a low-cost leadership strategy. There is also the
differentiation strategy which involves an organization sets aside its products to stand out
from the rivals products. Lastly is the niche strategy which focuses the industry‟s area of
operation or clientele base depending on certain similar attributes (Porter, 1980).
According to Porter (2008), competitive advantage grants a business market leadership as
it enables the business to stay ahead of the present and future potential competition. It
also helps the business realize the means of utilizing its resources in order to achieve the
competitive advantage and also increases the business‟s profitability which in turn results
to increased dividends for shareholders and better pay for workers. In a nutshell,
competitive advantage will determine the business‟s survival as well as its domination of
the market.
One of the critical drivers of business success in today‟s competitive marketplace and in
particular offering a good basis for a business‟s competitive advantage is employee
engagement. Although no settled definition of the concept exists, employee engagement
has been recently defined in the Human Resource Development (HRD) literature as “an
individual employee‟s cognitive, emotional, and behavioral state directed toward desired
organizational outcomes” (Shuck and Wollard, 2010, p. 103). Stockley (2006) defined
engagement as the extent that an employee believes in the mission, purpose and values of
an organization and demonstrates that commitment through their actions as an employee
and their attitude towards the employer and customers. According to Bhatla (2011),
employee Engagement is the extent to which workforce commitment, both emotional and
intellectual, exists relative to accomplishing the work, mission, and vision of the
organization. Engagement can be seen as a heightened level of ownership where each
employee wants to do whatever they can for the benefit of their internal and external
customers, and for the success of the organization as a whole.
3
The importance of employee engagement cannot be understated: it can be a deciding
factor in the organization‟s success. Employee engagement and organizational
performance are highly interlinked (Wellins and Concelman, 2005). Wellins and
Concelman (2005) state that an engaged employee tries harder, contributes more, speaks
positively about the organization and stays longer. The trend shows that almost all of the
companies explore the possibilities for adopting employee engagement as a strategy for
Human Resource Planning (HRP). Harter (2002) examined the relationship at the
business unit productivity and employee engagement and noticed that the „engaged
employees‟ are satisfied employees, which in turn leads to higher productivity. According
to Erickson (2004), the best ways to shape the behavior of an employee towards work is
to improve employee engagement. The assumption is that the greater an employee‟s
engagement, the greater their inclination to „go the extra mile‟ and put in the extra effort
for the benefit of the organization. Therefore, not only does engagement have the
potential to significantly affect employee retention, productivity and loyalty, it is also a
key link to customer satisfaction, company reputation and overall stakeholder value. As a
result, many organizations share the belief that in an evolving international free-agent
talent market where knowledge is becoming an organizational commodity (Kroth and
Keeler, 2009; Pink, 2009), employee engagement is an undeniable dominant source of
competitive advantage at all levels (Schwartz, 2011).
An organization‟s human resource is its best resource. Therefore, the maintenance of a
workplace with a higher caliber of employees is the key to success and the way to set
competitive advantage in the global scenario. An organization performs well if it can
combine its healthy, committed and motivated employees who can be termed as „engaged
employees‟ (Siddhanta and Roy, 2010). Additionally, due to the shift of the world‟s
economy from industrial to knowledge-based one, the value of employees is being
appreciated not only for what they produce but for what they know (The Brookings
Institute 2003). Thus, to have a high performing business is a competitive advantage for
any organization today (Siddhanta and Roy, 2010). Siddhanta and Roy (2010) are of the
opinion that despite providing good pay packages and benefits, many organizations lose
their top performers to competitors for no apparent reason. With this loss of employees
attends the transfer of the benefits of employee engagement to their rival organizations.
This in turn results in the loss of the competitive advantage they had on their competitors.
It is for this reason that businesses are striving to look for means to maintain their human
4
resource so as to maintain their competitive advantage. This is informed by the evidential
proof of the close linkage between employee engagement and competitive advantage.
Perrin (2003), for example studied over 35,000 employees across dozens of companies.
The findings showed a positive relationship between employee engagement and sales
growth, lower cost of goods sold, customer focus, and reduced turnover. The study
concluded that companies with highly engaged employees beat average revenue growth
in their sector by 1 percent while companies with low engagement were behind their
sector‟s revenue growth by an average of 2 percent. ISR (2004) studied 41 companies
across 10 geographical markets. Looking over three years of data, the findings were that
change in operating margin in low engagement companies was 2.1 percent and net profit
margin was a dismal 1.38 percent. Comparatively the high engagement counterparts,
where operating margin was up to a positive 3.75 percent, the net profit margin up 2.06
percent. The Right Management Group in the period bordering November 2008 to
January 2009 conducted a survey among 28810 employees in 15 countries in America,
Africa and Asia-Pacific and found that employee engagement leads to higher financial
performance, higher customer satisfaction and higher employee retention. It is from this
evidence that employee engagement becomes critical so as to maintain a business‟s
competitive advantage in the market.
Engaged employees value, enjoy and have pride in their work. They are more willing to
help each other and the organization succeed; take additional responsibility; invest more
effort in their jobs; share information with other employees; and remain with the
organization than employees who are less engaged (LePine, Erez and Johnson, 2002;
Riketta, 2008). Employee engagement is related variables, such as commitment and
cooperation, which have been found to be associated with organization performance and
competitive advantage (Macey and Schneider, 2008; Schneider, Macey, Barbera and
Young, 2009). First, they argue that psychological state engagement is seen to compose
of a combination of items drawn from one or more of the following categories: job
satisfaction, organisational commitment, psychological empowerment and job
involvement.
According to Erickson (cited in Macey and Schneider, 2008), engagement as satisfaction
is about an employee‟s willingness or passion to invest oneself and expend one‟s
discretionary effort for no additional pay or motivation, but purely to help the employer
5
succeed. Second, engagement as commitment is when it is conceptualized as a positive
attachment to the larger entity where one has a sense of belonging or feels as a part of the
„family‟ and therefore has a willingness to exert energy in support of the organisation, to
feel pride as an organisation member and to personally identify with the organisation.
Third, engagement as empowerment which comprise of feeling such as sense of purpose,
competence/self-efficacy, self-determination/ control connote an inclination to action by
the employee in respect to his or her work. Engagement as job involvement is
conceptually distinct from organisational commitment because the focus is on work rather
than the organisation and is characterised by energy and efficacy. It includes task and job
commitment where individuals focus or are committed to their respective work roles and
not the organisation per se as seen in engagement as commitment.
According to Wiley (2010), employee engagement is a means to an end. That is,
organizations that want to drive high levels of business success need motivated and
engaged employees to get there. According to the Strategic Human Resource
Management (SHRM) Foundation employees who are engaged in their work and
committed to their organizations give their organizations crucial competitive advantages,
including higher productivity and lower employee turnover. In tough economic times,
maximizing the productivity of the workforce is more important than ever. Human
Resources (HR) is uniquely positioned to lead the way by implementing strategies to
increase employee engagement for increased competitive advantage. This concurs with
the Gallup findings (cited in Kular, Gatenby, Rees, Soane, and Truss, 2008) who found
that higher workplace engagement predicts higher earnings per share (EPS) among
publicly listed companies. The studies found that organisations with more than four
engaged employees for every one actively disengaged employee experienced 2.6 more
times EPS growth than did for organisations with slightly less than one engaged worker
for every actively disengaged employee. This existing research on EPS provides proof
that employee engagement correlates to crucial business outcomes.
It is at the backdrop of the above that the following study sought to investigate the key
employee engagement improvement strategies that could be employed to increase
competitive advantage in Kenyan companies and more specifically at Safaricom Limited.
The study built on the already existing strategies being used by the company to maintain
its position in the industry.
6
1.2 Statement of the Problem
According to Bhatla (2011), the fast pace of technological advancement, rising
complexities of managing businesses, pressures to become world class organizations and
relative scarcity of people with critical skills have resulted in problems of attracting,
retaining and utilizing talent in most organizations globally. In the changed business
scenario, it is being increasingly realized that organizations can gain and maintain
competitive edge through people as creators of assets. It is precisely to that end that
employee engagement assumes significance as a way of managing people in
organizations because engaged employees are believed to deliver high quality/committed
service and they form work teams that produce high quality results.
The communication industry is very competitive in Kenya. Safaricom Limited had
managed to maintain dominance in the telecommunication industry through the following
strategies; product innovation, diversification of products and the adoption of technology.
Safaricom was yet to determine whether the key engagement strategies contribute to
maintaining the company‟s competitive advantage. Researchers state that employee
engagement strategies like: employee well-being, effective organizational communication
and HR policies and practices can contribute to an organizations attainment of
competitive advantage (Kinicki and Kreitner, 2008; Price, 2011). It was not clear if this
was the case in Safaricom. Such a study had not been carried out in Kenya or at
Safaricom before. It is against the above background therefore that the study sought to
determine the effect of employee engagement strategies on an organization‟s competitive
advantage.
1.3 General Objective
The general objective of the study was to examine key employee engagement strategies
employed by Safaricom Limited and their influence on the company‟s competitive
advantage.
1.4 Specific Objectives
The study was guided by the following specific objectives:
1.4.1 To investigate the effect of employee-well-being on the attainment of competitive
advantage in Safaricom.
7
1.4.2 To investigate the effect of HR policies and practices on competitive advantage in
Safaricom.
1.4.3 To establish the effect of effective organizational communication on the
attainment of competitive advantage in Safaricom.
1.5 Importance of the Study
This study would be important to various stakeholders including managers and HR
practitioners, future researchers and academicians, policy makers and the General public.
Being the ground-breaking study in the country, it would help other organizations
implement the findings of this study in order to bolster their position in the market
through the implementation of its findings.
1.5.1 Managers and HR practitioners
The findings and recommendations of this study would be useful to managers and HR
practitioners by helping them to formulate employee engagement practices for
competitive advantage in their organization. It would also educate them on the pros and
cons of using the various means of achieving employee engagement. The findings and
recommendations would also help influence shaping a motivated work-force in the
organization that will result in higher performance.
1.5.2 Academia
Knowledge seekers in the fields of economics, HR, research methods, management, and
development studies would find this research study useful. In particular, this research
study would be beneficial to the researchers with research interests in employee
engagement and competitive advantage, by serving as a point of reference. In addition,
future researchers would be able to formulate further studies based on the
recommendations of this study. The study would also be important as it would be one of a
kind in the country to ever be conducted. The findings would contribute towards the
general local knowledge as well as serve as a starting point for future research and
criticism.
1.5.3 Policy Makers and the Public
Policy makers would find the findings and recommendations of this study useful in
formulating policies on human resource. The findings would also come in handy in their
8
advisory opinions and management regulations to businesses. It would also help reduce
the wanton number of human resource disputes as well as offer a guideline on the
maintenance of a proper working condition. To the public, the study would assist them in
understanding the contribution of employee engagement and competitive advantage. It
would also help them understand some of the key terms used in managing businesses.
1.6 Scope of the Study
The target group of this study was the management staff of Safaricom Limited. The
sample of this study was derived from the organization‟s employees at their customer
care centers in Nairobi. The company was the leading telecommunication service
provider in the country in terms of percentage market share and followed by Airtel
Networks Kenya Limited, Essar Telecom Limited and Telkom Kenya Limited (Orange)
(Communications Commission of Kenya [CCK] Report, 2012-2013). It was also the
largest employer in the industry. Data was collected by administering a questionnaire to
the employees at Safaricom Limited. The data was collected in February 2014.
In the pursuit of data from the respondents, the researcher experienced shortfalls and
challenges that hindered access to information. One of the challenges was that, the
managers who were the respondents were unwilling to give full information to the
researcher. This was anticipated since the information sought dealt with strategies of the
company which the managers were not willing to share. However, the researcher assured
the respondents that the information given was strictly to be used for academic purposes
and their information would be kept as confidential as possible. Another limitation was
that the respondents were very busy executing their duties and they had limited time to
spare in answering the questionnaire. To counter this, the researcher opted to use drop and
pick later method so that the respondents would answer the questionnaire at their own
free time. Moreover, the researcher introduced herself in the questionnaire and briefly
explained to the respondents the purpose of the study.
1.7 Definition of Terms
1.7.1 Employee Engagement
Kahn (1990) conceptualizes employee engagement as “the harnessing of organization
members themselves to their work roles; in engagement people employ and express
themselves physically, cognitively and emotionally during their role performances.” The
9
cognitive aspect of employee engagement concerns employees‟ beliefs about the
organization, its leaders and working conditions. The emotional aspect concerns how
employees feel about each of the three factors identified above and whether they have
positive or negative attitudes towards the organization. The physical aspect of employee
engagement concerns the physical energies exerted by individuals to accomplish their
roles. McCashland (1999) on the other hand, defined employee engagement as
„commitment or engagement – an emotional outcome to the employee resulting from the
critical components of the workplace‟.
1.7.2 Competitive Advantage
This is the advantage that a firm has over its competitors and occurs when an organization
acquires or develops an attribute or combination of attributes that allows it to outperform
its competitors. It is value that an organization is able to create for its customers that
exceeds the cost of creating this same value (Porter, 2008).
1.7.3 Employee Wellbeing
It is a multi-dimensional aspect that involves the physical, mental and the social health of
the employee. It requires organizations to actively assisting the employees to maximize
their physical and mental health (CIPD, 2006).
1.7.4 Human Resource Management
It is the management process of an organization's workforce, or human resources. It is
responsible for the attraction, selection, training, assessment, and rewarding of
employees, while also overseeing organizational leadership and culture and ensuring
compliance with employment and labor laws (Society for Human Resource Management,
2007).
1.7.5 Organizational Communication
It is the transfer of information from the sender to the receiver with the information being
understood by the receiver (Koontz, 2001). Hybels and Weaver (2001) also define
organizational communication as “ any process in which people share information, ideas
and feelings, and that it involves not only the spoken and written word but also body
language, personal mannerism and style ” and anything that adds meaning to a message.
10
1.8 Chapter Summary
This section highlighted competitive advantage and shown the relationship between
employee engagement and a firm‟s competitive advantage. This study therefore sought to
explore the key strategies to improve employee engagement that can be employed by
Safaricom Limited for competitive advantage. The chapter laid out the background of the
study, the problem statement, the research objectives, justification of the study, the scope
of the study and the definition of terms. The next chapter reviews the literature by other
authors on employee engagement improvement strategies and competitive advantage and
will start with the theoretical framework for the study. This is followed by highlighting
the research methodology adopted by the study in the third chapter. Chapter four
interprets and presents the study results while the last chapter is a synthesis of the entire
report and contains summary of findings, discussion of the findings, conclusions and
recommendations made.
11
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This chapter reviews existing literature on how businesses can and have leveraged
employee engagement for competitive advantage. The chapter was guided by the study
objectives which sought to investigate the effect of employee-well-being on the
attainment of competitive advantage in Safaricom, investigate the effect of HR policies
and practices on competitive advantage in Safaricom and lastly, establish the effect of
effective organizational communication on the attainment of competitive advantage in
Safaricom.
2.2 Employee Well-being and Attainment of Competitive Advantage
Although the term employee wellbeing has gained considerable importance in the
corporate sector of late, no single definition of the term exists. However, Pruyne (2011)
gave a working definition of the concept as the state of being of an individual that is
characterized not only by good health or wellness, but also by comfort, satisfaction with
one‟s work and home life, personal prosperity and some measure of happiness (Pruyne
2011). Chartered Institute of Personnel and Development (CIPD) (2006) on the other
hand defined the concept as “creating an environment to promote a state of contentment
which allows an employee to flourish and achieve their full potential for the benefit of
themselves and their organization”. CIPD noted that the concept of employee wellbeing
encompasses more than the avoidance of getting sick. It is a multi-dimensional aspect that
involves the physical, mental and the social health of the employee. Well-being at work,
therefore, is not merely about managing a physical and cultural environment with the
limited aim of not causing harm to employees. It requires organizations to actively assist
people to maximize their physical and mental health (CIPD, 2006). Important elements to
be considered with regard to employee well-being and the attainment of competitive
advantage are: the impact of work on employee well-being and well-being programs
(Waddell and Burton, 2006).
12
2.2.1 Impact of work on Employee Wellbeing
The Institute of Directors (2006), in its research report is of the opinion that all businesses
seek to be in a healthy state. If their employees are in a good state of health and well-
being, this must contribute to successful performance. They commented that healthy and
fit employees are essential to ensuring a company remains efficient and profitable. In the
same breathe, an organization‟s ability to maintain or even acquire competitive advantage
hinges on its ability to perform at a level above its competitors in the market. This
demands a workforce that is fit and healthy enough to drive the business‟s agenda and
objectives to the end. This realization makes case for the incorporation of the employee‟s
well-being strategies with a view to sustain the business‟s competitive advantage (The
Institute of Directors, 2006).
In a study by the Gallup organisation in the UK, Buckingham (cited in Kular et al.,
2008), identified three distinct categories of employee engagement which are namely:
engaged employees; non-engaged employees and actively disengaged employees. The
studies found that 63% of employees fell into the non-engaged category and was
characterised as being productive though not psychologically bonded to their
organisations. They were instrumentally motivated and could easily switch jobs for
higher pay and were cynical about higher order loyalty to their organisation. The engaged
employees comprised of 17% and these were characterised as being, loyal, committed,
productive and task effective. The final category that constituted the remaining 20%,
were actively disengaged. This was characterised by employees who were physically
present but psychologically absent. As a result, these employees demonstrated negative,
un-cooperative and even hostile behaviours and attitudes. The study also found that the
longer employees stayed within an organisation the more disengaged they became and
that there were critical links between employee engagement, customer loyalty, business
growth and profitability.
Therefore, the findings of this study greatly emphasised the significance of having
engaged employees within an organisation as it has a direct relationship with
performance outcomes. It therefore becomes a critical area of focus for organisations.
The findings highlight the need for organisations to establish motivational and
commitment practices to help combat the negative aspects of disengagement. One of the
proposed methods is the application of the self-concordance theory of motivation which
13
ensures that organisational goals are aligned to employees‟ personal goals to enforce
commitment and engage employees. This model will be looked at later as an operational
framework that can be applied in the engagement of employees (Kular et al., 2008).
This concept of employee well-being is not only limited to the employee‟s health both
physical and mental. It also encompasses such issues as the employee‟s skills and
competencies. To this end, businesses bear the burden to partner with schools and other
organizations to provide learning opportunities, such as internships, summer jobs or job
shadowing (Casner-Lotto and Barrington, 2006). This is with the view to create a
workforce that is unique to the organization and that which will ensure that the business
achieves its competitive edge over its competitors.
In addition, work/life balance is increasingly important for engagement and affects
retention. As emphasized in a recent study on generations and gender by the Families and
Work Institute, Generation X and Y have different workplace expectations than do the
baby boomers and mature workers (Families and Work institute, 2004). By being aware
of the unique needs of diverse groups, as well as by recognizing individual differences
within these groups, HR can better understand the challenges of increased diversity in the
organization‟s workforce for example: different generations, and work toward designing
and implementing workplace policies and practices to engage diverse employee groups
(Families and Work Institute, 2004).
Additionally, according to Gallup findings as cited by Society for Human Resource
Management [SHRM] (2007) which sought to establish how employee perceptions of
happiness and well-being affect job performance, it was established that supervisors play
a critical role in worker well-being and engagement. The study showed that happy and
engaged employees are better equipped to handle stress and change, are much more likely
to have a positive relationship with their manager, feel more valued by their employer and
are more satisfied with their lives. People with higher levels of engagement appear to
substantially enjoy more positive interactions with co-workers than do their less-engaged
counterparts. The study suggests that organizations can boost firm productivity if they
recognize these issues and help employees improve their well-being.
According to Schneider, Macey, Barbera and Martin (2009) a business that incorporates a
climate for employee well-being also acts as an antecedent for a service climate, although
this idea has not been tested empirically. The employee well-being is the precursor to the
14
business‟s good service to the customers. An employee whose health and other socio-
psychological factors have been taken care of by the business is more likely to treat
customers better than one whose interests have not been catered for. Good service in turn
forges customer loyalty which helps in gaining or even maintaining the business‟s
competitive advantage. Studies have shown that teamwork and collaboration within and
between groups can predict an organization‟s shareholder value and long-term team
productivity and effectiveness (Hoegl, Weinkauf and Gemuenden, 2004). Additionally,
the level of support and teamwork plays an important role in determining whether
employees choose to leave or stay with an organization in the long term (Hoegl,
Weinkauf and Gemuenden, 2004).
Presently, organizations are increasingly appreciating the importance of having an
employee well-being strategy. CIPD (2006) study reported that only just over a quarter of
organizations surveyed had incorporated an employee well-being strategy or similar
initiatives aimed at helping employees improve their physical and mental health. It was
also found that more than half of those organizations provided private health insurance
and slightly fewer organizations provided access to counseling services. Further, only a
third provided support in stopping smoking and access to subsidized gyms. While in
many organizations employee well-being has remained within the remit of the
occupational health and counseling services, increasingly organizations are taking a more
holistic approach to well-being (Waddell and Burton, 2006).
2.2.2 Well-being Programs
Wellness requires paying attention to mind and body. Both elements of body and mind
are interdependent, impacting one upon the other, whether positively or negatively. To
cater for this, a wellbeing program needs to be put into place (Dessler, 2008). Such a
program needs to address key elements such as the physical, psychological and social
health of an individual. The best programmes however do not consider these elements in
isolation, but unite these initiatives (SHRM, 2007).
Importantly, wellbeing programs need to be non-judgmental, all embracing, and one that
helps people to exchange their bad behavior for good ones. The real gains to the business
are made by preventing people from becoming ill or injured in the first place. Reactive
support once a problem has arisen (such as private health care and employee assist
programmes) is of limited value. Wellbeing programmes are weighted towards
15
preventative intervention, striving to ensure that people avoid poor health, chronic
conditions, and even terminal health problems (SHRM, 2007). In their ideal form, well-
being initiatives are proactive and work to enable employees to achieve their full potential
– physical, mental, social, intellectual and spiritual (CIPD, 2006). High-performing
companies clearly understand the health-and-work-behaviour equation. This is why more
than 75 percent of the companies surveyed recently said they regularly measure health
status as component of their overall risk management strategy. It is for this reasons that
the top management of all firms should always strive to drive this equation at all levels
(Watson, 2010).
2.3 HR Policies and Practices and Attainment of Competitive Advantage
Human Resource policies may be defined as the formal rules and guidelines that
businesses put in place to hire, train, assess, and reward the members of their workforce
(Armstrong, 2009). According to Itika (2011), it is important for managers to pose a
number of questions which have to be answered by the managers themselves before
considering any human resource policy. This is because developing human resource
policy to address specific areas of human resource management is an investment which,
in principle should have positive returns in terms of facilitating decision making and
creating a motivating environment for the employee.
Itika (2011) in reviewing the fundamentals of human resource management revealed that
it‟s critical to help managers ensure that people management is in line with corporate
values. In order to ensure employees‟ commitment, the organization should ensure that
corporate vision, mission, and values are developed and put across in such a way that
both managers and employees feel that the organization is not just paying lip service.
Itika (2011) further reveals that managing employees is about decision-making and
implementation of human resource intents in the whole spectrum of the terms and
conditions of employment as these policies provide a reference and guidance for avoiding
inconsistent decision making by managers or those who make decisions in similar matters
and thus affecting different employees over time. This builds confidence and trust
between managers and staff. HR policies also minimize inequality in the treatment of
employees. The existence of human resource policies cannot guarantee equality in the
treatment of employees. Sometimes it becomes difficult for employees to demand equal
treatment when there are anomalies and when there are no clear definitions and criteria
16
for judging equality. However, human resource policies facilitate decentralization,
delegation and local empowerment and become the source of power and authority for
those entrusted with the execution of duties affecting employee‟s work and welfare (Itika,
2011).
With the above in mind important elements to be considered with regard to HR Policies
and attainment of competitive advantage are: the effect of HR policies on employee
commitment and HR policies and practices and organizational success (Tzafir, Dolan and
Simon, 2004; Tsaura and Lin, 2004; Smeenk, Eisinga, Teelken and Doorewaard, 2006;
Shahnawaz and Juyal, 2006; Chew and Chan, 2008).
2.3.1 The Effect of HR Policies on Employee Commitment
Employee-employer relations can be improved if the organization implements effective
HRM practices and policies. Tzafrir et al. (2004) conducted a research on the relationship
between human resource management practices and policies on employee‟s trust. The
result indicated a positive and significant influence of empowerment, organizational
communication and procedural justice as determinants of employees trust in their
managers. It was also found that procedural justice mediates the impact of employee
development on their trust in their managers. The HRM practices and policies help the
organization to increase mutual understanding between the employees and the employer.
Guzzo and Noonan (1994) on the other hand considered HRM practices and policies as a
communication channel between employer and employees. Rousseau and Greller (1994)
further proposed HRM practices and policies as contract-shaping events differentiating
one business from the other and hence leading to the attainment of competitive advantage
(Rousseau and Greller, 1994).
Vanhala and Ahteela (2011) in their study found that employee trust in the whole
organization is connected to perceptions of the fairness and functioning of HRM practices
and policies. Such practices and policies can therefore be used in order to build the
impersonal dimension of Organizational trust. It is the trust created by such practices and
policies that influences employee engagement and in return competitive advantage of a
business (Vanhala and Ahteela, 2011).
Bailey (1993) argued for the application of promoting HRM practices and policies on the
grounds that human resources are frequently underutilized and these practices and
17
policies may come in handy to improve utility of employees. Employees often perform
below their potential. Any means that increases the employee‟s performance also
increases the output of the company and hence aids in the maintenance or the
achievement of competitive advantage. Bailey points out that HRM practices may have
an influence on employee skills and motivation (Bailey, 1993)
The implementation of HRM practices and policies in the organization leads to enhanced
employee commitment. Maheshwari, Bhat and Saha (2005) studied the commitment of
health officials and its implications for HR practices in Maharashtra. The study suggested
that investing in development of multiple strategies for the growth and career
development of health professionals in required. Similarly, Smeenk et al. (2006)
examined the factors which affect organizational commitment among Dutch university
employees in two faculties with different academic identities (separatist versus
hegemonist). The analyses of data revealed that in the separatist faculty decentralization,
compensation, training/development, positional tenure and career mobility have
significant effects. Age, organizational tenure, level of autonomy, working hours, social
involvement and personal importance significantly affected the employees‟ organizational
commitment in the hegemonist faculty. Participation, social interactions and job level are
factors that are important in both faculties (Smeenk et al., 2006).
Shahnawaz and Juyal (2006) compared various HRM practices and policies in two
different organizations-a consultancy/research based organization and a fashion firms.
The aim of the study was to show how employee commitment can be attributed to HRM
practices. HRM practices and policies were found significantly different in two
organizations and mean scores on various HRM practices and policies were found more
in the fashion organization. Regression results showed that various HRM practices were
significantly predicting organizational commitment in both organizations and also when
they were combined. Performance appraisal and „attitudes towards HRM department‟
were the significant predictors of organizational commitment in both the organizations.
Chew and Chan (2008) examined the impact of HR practices and policies on permanent
employee‟s organizational commitment and their intention to stay and found that
organizational commitment was positively affected by person-organization fit,
remuneration, recognition, and an opportunity to undertake challenging employment
assignments. Intention to stay was significantly related to person-organization fit,
remuneration recognition, training and career development. Further, he found that
18
training and career development was not significantly related to organizational
commitment and challenging assignments was not significantly related to intention to stay
(Shahnawaz and Juyal, 2006; Chew and Chan, 2008).
2.3.2 HR Policies and Practices and Organizational Success
According to Schuller and MacMillan (1984) the result of effectively managing human
resources through human resource policies and practices is an enhanced ability to attract
and retain qualified employees who are motivated to perform, and the results of having
the right employees motivated to perform are numerous. They include greater
profitability, low employee turnover, high product quality, lower production costs, and
more rapid acceptance and implementation of corporate strategy. These results,
particularly if coupled with competitors who do not have the right people motivated to
perform, can create a number of competitive advantages through human resource
management practices.
Researchers provide evidence to show that HRM practices help the organization to
improve the quality of services. Tsaura and Lin (2004) empirically explored the
relationship among human resource management practices, service behavior and service
quality in the tourist hotels. The results indicated that HRM practices had partially a
direct effect on customer perceptions of service quality and an indirect effect through
employees‟ service behavior. This means that service behavior only partially mediates the
relationship between human resource management practices and service quality. Good
customer perceptions about the organization will in turn help in creating customer loyalty
which translates to maintaining the organization‟s competitive advantage (Tsaura and
Lin, 2004).
Human resources are the source of achieving competitive advantage because of its
capability to convert the other resources (money, machine, methods and material) in to
output (product/service). The competitor can imitate other resources like technology and
capital but the human resource are unique. According to Khatri (1999), people are one of
the most important factors providing flexibility and adaptability to organizations. Rundle
(1997) argues that one needs to bear in mind that managers, not the business, are the
adaptive mechanism in determining how the firm will respond to the competitive
environment. Several scholars have noted that managing people is more difficult than
managing technology or capital (Barney, 1991; Lado and Wilson, 1994). However
19
businesses that have learnt the art of managing their human resources well would have an
edge over others for a long time to come because acquiring and deploying human
resources effectively is cumbersome and takes much longer (Wright, MacMahan and
MacWilliams, 1994).
Rondeau and Wager (2001) while examining the relationship between HRM practices and
policies, workplace climate and perceptions of organizational performance, in a large
sample of Canadian nursing homes, found that nursing homes, which had implemented
more „progressive‟ HRM practices and policies and which reported a workplace climate
that strongly valued employee participation, empowerment and accountability tended to
be perceived to generally perform better on a number of valued organizational outcomes
(Rondeau and Wager, 2001). These nursing homes were also preferred to their
counterparts due to their service and the dedication of their employee for the benefit of
the nursing homes. Enrollment data from these nursing homes recorded higher figures
than their counterparts which did not have these policies and practices.
Nayyab, Hamid, Naseerm and Iqbal (2011) conducted a study on the Impact of HRM
practices on the Organizational performance of the banking sector in Okara, Punjab. They
found that HRM practices and policies contribute to the enhanced banks performance.
Further, the result indicated that HRM practices like training, employee participation in
decision making was found significantly related with banks performance. Further,
Osman, Ho and Galang (2011) found that the effectiveness of implementing HR practices
and policies in a company does indeed have a major impact towards a firm‟s
performance. The findings also show that HR practices have an impact of nearly 50
percent on firm performance (Osman et al, 2011).
Hyde, Richard and Lisa (2008) examined the impact of HRM practices and policies on
firm profitability. Their findings offered a little support for a positive relationship
between HRM practices and policies and firm profitability. Fey Carl (2000) surveyed the
relationship between human resources management (HRM) practices and policies and the
performance of 101 foreign-owned subsidiaries in Russia. The study‟s results provide
support for the assertion that investments in HRM practices and policies can substantially
help a firm perform better. Further, different HRM practices for managerial and non-
managerial employees are found to be significantly related with firm performance. Ngo
Lau and Foley (2008) examined Strategic Human Resource Management (SHRM)
20
practices and policies in China to assess the impact of these practices on firm
performance and employee relation climate and found that SHRM practices have direct
and positive effects on financial performance, operational performance, and the employee
relations climate (Ngo et al., 2008).
2.4 Effective Organizational Communication and Attainment of Competitive
Advantage
Organizational communication can be defined as the sending and receiving of messages
among interrelated individuals within a particular environment or setting to achieve
individual and common goals. The concept of organizational communication is highly
contextual and culturally dependant and not an isolated phenomenon. Organizations
normally communicate so as to build relationships, or repeated interpersonal interactions,
with internal organization‟s members and interested external public (Hahn, Watts and
Kim, 2001).
In the modern business climate, effective organizational communication both internal and
external is a strong determinant of an organization's success. Effective organizational
communication actively engage employees, foster trust and respect, and promote
productivity (Blazenaite, 2011). A survey on job satisfaction by Society for Human
Resource Management, (2008) reported that communication between employees and
senior management is among the top five very important aspects of employee job
satisfaction. Riel and Fombrun (2007) point out that communication is at the heart of
organizational performance. The importance of communication to a business thus
becomes critical in face of competition. Inculcating effective organizational
communication is therefore necessary for the business to either gain or maintain
competitive advantage. Reasons for the increasing importance of organizational
communication are many, with workplace change front and center. Overall, the world of
work has become more complex. More than ever before, knowledge, learning and
innovation are critical to an organization‟s sustainability (Riel & Fombrun, 2007).
Further, with employees often being widely distributed geographically, communication
technologies and networks are essential for the accomplishment of a company‟s strategy
(Baker, 2002).
21
However, it becomes important to define the term effective organizational
communication. It is a complex concept encompassing many aspects. It spans a wide
range, from formal and informal internal communication practices to externally directed
communications (media, public, inter-organizational). Organizational communication
includes marketing, public relations, investor relations, corporate advertising and
environmental communication. In the largest sense, it encompasses the organization‟s
initiatives that demonstrate social responsibility and good citizenship (Reil and Fombrun,
2007).
2.4.1 The Power of Communication
Gargiulo (2005) revealed that from a HR viewpoint, effective organizational
communication contributes to learning, teamwork, safety, innovation and quality of
decision making in organizations. In an age of increased competition for talent,
communication has become a strategic tool for employee engagement, satisfaction and
retention. In fact, effective organizational communication contributes directly to
employee and organizational learning, an essential factor for competitive advantage.
Thus, as a promoter of effective organizational communication, HR is a key strategic
partner in leveraging the relationships between employees and top management
(Gargiulo, 2005).
As noted in SHRM Foundation‟s Employee Engagement and Commitment, employees
who are committed to the company and engaged in their work provide organizations with
crucial competitive advantage, such as higher productivity and lower employee turnover
(Vance, 2006). In fact, according to Watson Wyatt‟s 2007/2008 Communication Return
on Investment (ROI) Study , firms that communicate effectively are four times as likely
to report high levels of employee engagement as firms that communicate less effectively
(Luss and Nyce, 2008).
Kress (2005) asserts that the Human Resource leaders who promote thoughtful
communication strategies directly encourage employee engagement and keep the
workforce energized, focused and productive. To recharge employee morale and support
the organization‟s objectives, HR can foster an environment for engagement by
developing a targeted, proactive strategic communication plan. This communication
strategy can focus on organizational goals and determine methods of communication and
information points for different audiences. In return, the engaged employees become the
22
business‟s most fierce weapon in the market thus offering the business insurmountable
competitive advantage (Kress, 2005).
Organizational communication is also essential on a routine basis. It provides updates,
such as progress on fulfilling organizational goals or reasons for policy changes
(Blazenaite, 2011). On-going reports from HR and senior management on business
strategy and policies, for example, demonstrate respect for the employee role in the
company‟s success; provide direction and foster trust. This, in turn, helps the organization
achieve its objectives faster as the employee‟s work is well cut out. The overall effect
being that the organization acquires a resolute workforce that is so motivated to benefit
the organization and thus outperforming other organizations (International Association of
Business Communicators Research Foundation and Right Management Group, 2005).
Effective and efficient organizational communication provides access to both objective
and tacit knowledge which is the basis for higher performing internal and external
organizational collaboration (Reil and Fombrun, 2007).
2.4.2 Employee’s Voice
Closely linked to communication is the aspect of organizational justice. This refers to
whether employees perceive the organization as being fair in its decision making and
whether it treats people with respect. A recent study looked at the impact of internal
communication and organizational structure on employee-organization relationships,
using organizational justice as a mediating factor (Blazenaite, 2011). Results showed one-
way communication to have a negative association with employee trust, satisfaction and
commitment. The findings also revealed that two-way communication contributed to
good employee-organization relationships but only when supported by organizational
justice. That is, effective communication must be combined with fair policies, systems
and management behaviour to establish positive employee-organization relationships
(Kim, 2007). The link between employee and the organization is particularly vital
especially in relation to the organization performs which also influences competitive
advantage.
A participatory management practice also creates opportunities for employee voice by
encouraging upward communication and facilitating employee input in organizational
decisions for the benefit of the organization (Kress, 2005). For example, HR leaders can
involve employees through team briefings, workplace committees, problem-solving
23
groups, focus groups, suggestion boxes and regular meetings with senior management.
According to research by Parks (2005), 86% of HR professionals who use some form of
employee feedback rated the effectiveness of these interactions as “good” or “very good”.
It has also been shown that employee voice has a positive effect on employee trust in
supervisors, organizational commitment and satisfaction with company decisions which
in turn leads to increased employee engagement. However, these programs have the
probability of having a negative effect on the organization especially if employees suspect
their input will not be considered in the final decision or question the real motives for
being asked for their opinions (Potter, 2006). Employee voice and involvement through
upward communication becomes critical especially during the planning and
implementation of organizational strategy (Human Resource Institute, 2007). Noteworthy
is the fact that effective fulfilment of strategy is the key to maintaining an organization‟s
competitive advantage.
Clear, consistent and honest communication is an important management tool for
employee engagement and retention. Such strategies are critical to long-term
organizational success. Additionally, strategic and continuous communication lends
credibility to the organization‟s leadership. This in return increases employees‟
confidence in the organization and thus motivating them to work harder for the benefit of
the organization. In contrast, a lack of communication or poorly communicated
information can lead to distrust, dissatisfaction, skepticism, cynicism and unwanted
turnover. This poses a negative impact on the employees‟ attitude towards the
organization and may in some instance result to underperformance which reduces the
competitive edge of the organization (SHRM, 2008).
SHRM (2008) report stipulates that though various modes of communication exist in the
modern era, face-to-face communication is the bet medium in the business environment.
Media such as reports and letters are less effective for information exchange than
“dynamic” channels, such as one-on-one conversations, corridor chats and small group
meetings, that incorporate communication among employees. To this end, the report
suggested that HR and top management can work together to enable supervisors to be key
communicators in the organization (SHRM, 2008).
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2.5 Chapter Summary
This chapter discussed the empirical literature on the three objectives of the study and
their relationship to competitive advantage. The chapter first discussed the effect of
employee-well-being on the attainment of competitive advantage, the effect of HR
policies and practices on competitive advantage and the effect of effective organizational
communication on competitive advantage. The chapter ended with a summary of the
literature review. The next chapter discusses the research methodology adopted that
guided the research study.
25
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the research design, population and sampling design, sampling
frame, sample size, data collection methods, research procedures and data analysis
methods. This guided how the research study was conducted towards the realization of
the research objectives.
3.2 Research Design
Dooley (2007) defines a research design as the scheme, outline or plan that is used to
generate answers to research problems. This study adopted a descriptive research design.
According to Babbie (2002), a descriptive design portrays the variables by answering
who, what, and how questions; it involves gathering data that describe events and then
organizes, tabulates, depicts, and describes the data. It is from the data collected through a
research design that researchers can be in a position of answering the research questions
of a study. Descriptive research design is used when scholars and researcher want to
determine the characteristics of an element or variable (Mugenda & Mugenda, 2003).
The descriptive research design was deemed fit for the study as it facilitated the use of a
questionnaire to collect data in an extensive area and help describe the current status of
the key strategies adopted by Safaricom Limited to improve employee engagement. This
is in line with Mugenda and Mugenda (2003), who revealed that descriptive design is a
process of collecting data in order to answer the questions of the current status of the
subject under study. Its advantage is that, it was used extensively to describe behavior,
attitude and characteristics in the study area.
3.3 Population and Sampling Design
3.3.1 Population
Target population in statistics is defined as the specific population about which
information is desired. Ngechu (2004) conceptualizes a population as a well-defined or
set of people, services, elements, events and group of things or households that are being
investigated. This definition ensures that population of interest is homogeneous. The
target population comprised of 160 staff in different managerial levels currently
26
employed at Safaricom. This population was chosen since people in management are the
ones involved in the day to day running of the company and are therefore well conversant
with the effect of employee engagement on the competitive advantage of Safaricom. This
target population was the best suited to implement the recommendations made by this
study since they are in the level of management that have influence on policies and
practices of the company. Mugenda and Mugenda, (2003), explain that the target
population should have some observable characteristics, to which the researcher intends
to generalize the results of the study. To this end, it is the managerial level of the
population target in this study that influences their selection. Table 3.1 shows the
distribution of the population.
Table 3.1 Target Population
Level Frequency Percentage
Administrative level managers 15 9.4
Executive managers 37 23.1
Operative managers 108 67.5
Total 160 100
Source: Safaricom, (2013)
3.3.2 Sampling Design
3.3.2.1 Sampling Frame
A sampling frame is defined as a list of elements from which the sample may be drawn.
The term working population may also be used to describe the sampling frame (Zikmund
and Babin, 2010). This research used a sampling frame comprising of a cross-section of
employees from the organization. It consisted of population from the top management,
senior officers and low officers in the organization. The list was obtained from the
Safaricom human resource department.
3.3.2.2 Sampling Technique
Ngechu (2004) underscores the importance of selecting a representative sample through
making a sampling frame. From the population frame the required number of subjects,
respondents, elements or firms was selected in order to make a sample. Stratified
27
proportionate random sampling technique was used to select the sample. According to
Deming (1990) stratified proportionate random sampling technique produce estimates of
overall population parameters with greater precision and ensures a more representative
sample is derived from a relatively homogeneous population. Stratification aims to reduce
standard error by providing some control over variance. This study had grouped the
population into three strata, that is, administrative level managers, executory managers
and operative managers. The structure in Safaricom put staff in three categories.
Administrative level managers consist of the board of directors and the chief executive.
Executory managers comprise the branch managers and departmental managers while
operative managers mainly consisted of supervisors, foremen and section officers.
3.3.2.3 Sample Size
The sample size is defined as the number of sampling units which are to be included in
the sample. In a research of a multi-stage sample, a sampling size refers to the number of
units at the final stage in the sampling procedure (Mugenda and Mugenda, 2003). From
each stratum the study took a 30% sample. Choosing of a 30% sample was in line with
Mugenda and Mugenda (2003) who recommend that a representative sample should
comprise between 10-30% of the population; they assert that, a good population sample
should be at least 10% and not more than 30% of the entire population. The sample size
was 48 respondents and included top management officers, senior management officers
and low level officers within Safaricom Limited Company. Fewer top management and
senior officers were interrogated so as to increase chances of actually meeting with them
and saving on time due to their hectic schedules. Also, fewer low level officers were
interrogated so as not to interrupt the working of the company. The sample size
distribution is shown in Table 3.2.
28
Table 3.2 Sample Size Distribution
Level Frequency Percentage Sample size
Top Management Officers 15 30 5
Senior Officers 37 30 11
Low Level Officers 108 30 32
Total 160 48
3.4 Data Collection Methods
The study collected primary data using a structured questionnaire. The questionnaire
consisted of four sections. The first section aimed at collecting the respondents general
information such as gender, name etc. The second part consisted of questions based on
the first objective of this study which is employee well-being. The third part consisted of
questions aimed at collecting data on the second research objective of this study while the
fourth part inquired into the third objective of the research. The questionnaire had both
open and closed ended questions. The questionnaire collected both the qualitative and
quantitative data. The structured questionnaires were used in order to conserve time and
money as well as to facilitate in easier analysis as they were in immediate usable form;
while the unstructured questions were used to encourage the respondent to give an in-
depth and felt response without feeling held back in revealing any information.
3.5 Research Procedures
A pilot study was first conducted to determine the validity and reliability of the research
instrument. A pilot study is a small experiment designed to test logistics and gather
information prior to a larger study, in order to improve the latter‟s quality and efficiency.
The pilot study helped to indentify the deficiencies in the design of the questionnaire
before the actual data collection process. The researcher selected a pilot group of 5
respondents the target population to test the reliability of the research instrument. This is
guided by Mugenda & Mugenda (1999) who indicated that a successful pilot study would
use 1% to 10% of the actual sample size. Validity of the instrument was established by
the researcher and supervisor reviewing the items while the reliability as tested using
Cronbach‟s alpha whereby a co-efficient of above 0.7 implied that the instrument was
sufficiently reliable. The results of the pilot testing were not included in the findings.
29
The researcher personally administered the structured questionnaire to the respondents at
Safaricom; however where a respondent was busy or not available at that moment, a drop
and pick later method was adopted. According to Bryman and Bell (2003), a self-
administered questionnaire is the only way to elicit self-report on people‟s opinion,
attitudes, beliefs and values. It is on this basis that this method was chosen. To increase
the response rate, the researcher employed various strategies. First, the researcher
introduced herself in the questionnaire and explained the purpose of the study in the first
section; this showed honesty and created confidence among respondents in answering the
questionnaire. The researcher also ensured that the questionnaire used simple and
understandable language without using ambiguous words. Lastly, in instances where the
respondents were busy, the researcher gave ample time for the respondents to answer by
leaving the questionnaire and picking it later at an agreed date.
3.6 Data Analysis Methods
Before processing the responses, the completed questionnaires were edited for
completeness and consistency. The data was then be coded to enable the responses to be
grouped into various categories. Both descriptive and inferential analysis was employed.
Descriptive statistics was used to summarize the data. This included percentages and
frequencies. The inferential analysis entailed the Pearson‟s Correlations analysis to
measure strength and form of the relationship between variables.
The analysis was conducted with the aid of SPSS software. Tables and figures were used
to present the data collected for ease of understanding and analysis. Tables were used to
summarize responses for further analysis and facilitate comparison. This generated
quantitative reports through tabulations, percentages, and measures of central tendency.
Cooper and Schindler (2003) note that the use of percentages is important for two
reasons; first they simplify data by reducing all the numbers to range between 0 and 100.
Second, they translate the data into standard form with a base of 100 for relative
comparisons.
30
3.7 Chapter Summary
The chapter presented the methods that guided the collection and analysis of data. The
chapter identified the research design used, discussed the population targeted, sample
frame, sample size and the sampling technique that was used to select the respondents.
The data collection instrument used was a structured questionnaire which helped answer
questions in line with the specific research objectives. The chapter also discussed how the
collected data was analyzed and presented for final presentation. The next chapter
presents the findings of the study.
31
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
This chapter presents the results and findings as analyzed on the three research objectives.
The general objective of this study was to examine the key employee engagement
strategies that were employed by Safaricom Limited to achieve competitive advantage.
The responses were analyzed using both descriptive and inferential statistics. The results
were presented in tables, pie charts and bar graphs.
4.2 General Information
The researcher found it important to establish the general information of the respondents
since it forms the basis for which the study can rightfully access the relevant information.
The general information of the respondents issues such gender, age, number of years
worked in organisation and level of education were captured in the first section.
4.2.1 Gender of the Respondents
Results show that 54.5% of the respondents were male while 45.5% were female. This
shows that Safaricom is an equal opportunity employer with both gender well
represented, though majority of the employees were male. The findings are presented in
Figure 4.1.
Figure 4.1 Gender of the Respondents
32
4.2.2 Age of the Respondents
The study found out that most of the respondents (40.9%) were between 30-39 years of
age while 29.5% were between 40-49 years of age. This therefore shows that majority of
the employees at Safaricom fall between this two age categories. However, the study
found out that a further 27.3% were between 20-29 years of age while only 2.3% were 50
years and above. The results are shown in Figure 4.2
Figure 4.2 Age of the Respondents
4.2.3 Years of Work in the Organization
This section sought to establish the duration that the respondents had worked in the
company. This was critical as it would determine whether the respondents were
conversant with the HR engagement practices based on the duration they had been in the
organisation. The study found that 36.4% of the respondents had worked with Safaricom
for a period of 4-7 years while 34% had worked for a period of 8-10 years. Moreover,
9.1% of the respondents revealed that they had worked in the company for over 11 years
while 20.5% had worked for a period of 0-3 years. This shows that majority of the
respondents had worked for a longer duration and therefore they understood the human
resource policies and engagement practices employed by the company. This therefore
improves reliability of the information gathered. The results are shown in Table 4.1.
33
Table 4.1 Years of Work in the Organization
Duration Distribution
Frequency Percentage
0 – 3years 9 20.5
4 – 7years 16 36.4
8 – 10years 15 34.0
Over 11years 4 9.1
Total 44 100.0
4.2.4 Highest Academic Qualification
On the respondents‟ level of education, the study found out that majority of the
respondents (61.3%) had attained a degree in the university, 36.4% indicated that they
had reached college level while 2.3% had attained A- level qualifications. This shows that
majority of the respondents were educated hence they understood the engagement
practices adopted by the company; thus reliability of the information gathered. The results
are presented in Figure 4.3.
Figure 4.3 Highest Academic Qualifications
4.2.5 Position in the Organization
The results shown in Table 4.2 indicate the respondents‟ respective positions in the
organization; 72.7% of the respondents indicated that they were operative mangers,
20.5% were administrative level managers while 6.8% were the executive managers.
34
Table 4.2 Position in the Organization
Position Distribution
Frequency Percentage
Executive managers 3 6.8
Administrative level managers 9 20.5
Operative managers 32 72.7
Total 44 100.0
4.2.6 Competitive Advantage
This section sought to establish whether the organization had achieved competitive
advantage. The competitive advantage of the organization was measured by establishing
the company‟s quality of products and customer service as compared to competitors.
4.2.6.1 Organization Produce Higher Quality Products
The respondents were asked to indicate whether the company produced high quality
products as compared to their competitors. All the respondents 100% (44)
overwhelmingly agreed that Safaricom produced high quality products than their
competitors. The results are shown in Table 4.3.
Table 4.3 Organization Produce Higher Quality Products
Level of Agreement Distribution
Frequency Percentage
Agree 44 100
Disagree 0 0
Not Sure 0 0
Total 44 100
4.2.6.2 Superior Customer Service
The respondents were further asked to indicate whether Safaricom had a superior
customer service as compared to other competitors and; an overwhelming 97.7% of the
respondents agreed to that while 2.3% indicated that they were not sure, none of the
respondents disagreed on existence of a superior customer service. The results are
presented in Table 4.4.
35
Table 4.4 Superior Customer Service
Level of Agreement Distribution
Frequency Percentage
Agree 43 97.7
Disagree 0 0
Not Sure 1 2.3
Total 44 100
4.3 Employee-Well-Being and Competitive Advantage
In this section, the study sought to find out the relationship between employee-well-being
as an employee engagement practice on the attainment of competitive advantage in
Safaricom. To achieve this, the study first sought to determine the extent to which the
company enhance the employees‟ wellbeing and further examined the extent to which
employee wellbeing enhanced employees‟ engagement and competitive advantage in the
organization.
4.3.1 Fulfilling Work
The study sought to establish the extent to which the respondents agreed on whether their
wok was fulfilling. Most of the respondents (38.6%) were neutral on whether their work
was fulfilling. However, while 29.5% agreed and 6.8% strongly agreed that their work
was fulfilling, 20.5% disagreed while 4.6% strongly disagreed. The results are presented
in Table 4.5.
Table 4.5 Fulfilling Work
Scale Distribution
Frequency Percentage
Strongly agree 3 6.8
Agree 13 29.5
Neutral 17 38.6
Disagree 9 20.5
Strongly disagree 2 4.6
Total 44 100
36
4.3.6 Facilitation of Good Health
The respondents were asked to indicate whether the organization had facilitated
employees‟ good health. Majority of the respondents (54.5%) agreed while 25% strongly
agreed to that. However, 15.9% were neutral while 4.6% disagreed, none of the
respondents strongly disagreed. The findings are presented in Table 4.6.
Table 4.6 Facilitation of Good Health
Scale Distribution
Frequency Percentage
Strongly agree 11 25.0
Agree 24 54.5
Neutral 7 15.9
Disagree 2 4.6
Strongly disagree 0 0
Total 44 100
4.3.7 Employees Wellness
On employee wellness, 40.9% of the respondents agreed while 22.7% strongly agreed
that the organization ensured employee wellness. However, 20.5% of they were neutral
while 15.9% disagreed, none of the respondents strongly disagreed. The results are shown
in Table 4.7.
Table 4.7 Employees Wellness
Scale Distribution
Frequency Percentage
Strongly agree 10 22.7
Agree 18 40.9
Neutral 9 20.5
Disagree 7 15.9
Strongly disagree 0 0
Total 44 100
37
4.3.8 Organization Culture
On the employees satisfaction with the company‟s organization culture; 38.6% agreed
while 34.1% strongly agreed that they were satisfied. However, 15.9% disagreed while
11.4% were neutral, none of the respondents strongly disagreed. These results are
presented in Table 4.8.
Table 4.8 Organization Culture
Scale Distribution
Frequency Percentage
Strongly agree 15 34.1
Agree 17 38.6
Neutral 5 11.4
Disagree 7 15.9
Strongly disagree 0 0
Total 44 100
4.3.5 Environment Promotes Employee Growth
The study sought to establish whether the organization had created an environment that
promotes employees growth. Majority of the respondents (52.3%) agreed while 27.3%
strongly agreed. However, 15.9% were neutral while 4.6% disagreed that Safaricom had
created an environment that promotes employees growth. The results are presented in
Table 4.9.
Table 4.9 Environment Promote Employee Growth
Scale Distribution
Frequency Percentage
Strongly agree 12 27.3
Agree 23 52.3
Neutral 7 15.9
Disagree 2 4.6
Strongly disagree 0 0
Total 44 100
38
4.3.6 Work Life Balance on Employees
On the employees‟ satisfaction on the organization‟s work life balance policy, 40.9% of
the respondents agreed while 13.6% strongly agreed that they were satisfied. On the other
hand, 36.4% of the respondents were neutral while 9.1% disagreed, none of the
respondents strongly disagreed. These findings are presented in Table 4.10.
Table 4.10 Work Life Balance on Employees
Scale Distribution
Frequency Percentage
Strongly agree 6 13.6
Agree 18 40.9
Neutral 16 36.4
Disagree 4 9.1
Strongly disagree 0 0
Total 44 100
4.3.7 Work Life Balance and Employee Performance
On whether the work life balance enhanced employee performance in the organization,
40.9% of the respondents agreed while 13.6% strongly agreed that it enhanced employee
performance. However, a significant number (36.4%) were neutral while 15.9% disagreed
and 2.3% strongly disagreed to this. The results are shown in Table 4.11.
Table 4.11 Work Life Balance and Employee Performance
Scale Distribution
Frequency Percentage
Strongly agree 5 11.4
Agree 14 31.8
Neutral 17 38.6
Disagree 7 15.9
Strongly disagree 1 2.3
Total 44 100
39
4.3.8 Extent Employee Wellbeing Enhance Employees Engagement in the
Organization
The study sought to determine the extent to which employee wellbeing enhanced
employees‟ engagement in Safaricom. Results show that 36.4% of the respondents agreed
to a great extent while 18.2% agreed to a very great extent that employee well-being
enhanced employee‟s engagement in the organization. However, 25% of the respondents
indicated that employee well-being enhanced employee‟s engagement to a moderate
extent, 13.6% indicated to low extent while 6.8% revealed that it enhanced employee
engagement to no extent. This is shown in Figure 4.4.
Figure 4.4 Employees Wellbeing and Employees Engagement
4.3.9 Correlation Analysis- Employees Well-Being
This section of the study sought to determine whether there a statistical significant
relationship between the competitive advantage of the organization and the well-being of
the employee. Results in Table 4.12 shows that competitive advantage in the organization
had a positive and significant relationship with: work fulfillment (r=0.456,
p=0.000<0.05); 4.3.2 facilitation of good health (r=0.362, p=0.010<0.05); employees
wellness (r=0.236, p=0. 002<0.05); creating an environment to promote employees
growth (r=0.104, p=0.012<0.05); and organization‟s policy on work-life balance
(r=0.378, p= 0.033<0.05).
40
Table 4.12 Employee Well-Being and Competitive Advantage Correlation
Competitive
Advantage
My work is fulfilling Pearson
Correlation
0.456**
Sig. 0.000
The organization facilitates the enhancement of
my good health
Pearson
Correlation 0.362
Sig. 0.010
The organization ensures employees wellness Pearson
Correlation
0.236
Sig. 0. 002
I am satisfied with the organization culture Pearson
Correlation
-0.021
Sig. 0.228
The organization has created an environment to
promote employees growth
Pearson
Correlation
0.104
Sig. 0.012
I am satisfied with the organization‟s policy on
work-life balance to employees
Pearson
Correlation
0.378
Sig. 0.033
Work-life balance policies enhance employee
performance in your organization
Pearson
Correlation
0.133
Sig. 0.277
*. Correlation is significant at the 0.05 level (2- tailed). **. Correlation is significant at
the 0.01 level (2-tailed).
4.4 Human Resource Policies and Competitive Advantage
In this section, the study sought to determine whether the various human resource policies
and practices employed by Safaricom enhanced employees‟ engagement and the extent to
which this influenced the company‟s competitive advantage. Some of the policies
reviewed included remuneration and reward programs, career development opportunities,
team building practices as well as the company‟s standard of ethical behaviour.
4.4.1 Basic Salary Level
The study sought to establish the extent to which basic salary enhanced employee
engagement. Results show 34.1% revealed that it enhanced employee engagement to a
high extent while 15.9% indicated to a very high extent. However, 38.6% of the
respondents were neutral while 11.4% revealed that it enhanced employee engagement to
a low extent. These results are presented in Table 4.13.
41
Table 4.13 Basic Salary Level
Scale Distribution
Frequency Percentage
Very high 7 15.9
High 15 34.1
Neither High nor Low 17 38.6
Low 5 11.4
Very low 0 0
Total 44 100
4.4.2 Basic salary Increase
On the basic salary increase, 40.9% of the respondents indicated that it enhanced
employee engagement to a very high extent while 22.7% indicated to a high extent.
However, 20.5% of the respondents were neutral while 15.9% indicated that it enhanced
employee engagement to a low extent. These results are presented in Table 4.14.
Table 4.14 Basic Salary Increase
Scale Distribution
Frequency Percentage
Very high 18 40.9
High 10 22.7
Neither High nor Low 9 20.5
Low 7 15.9
Very low 0 0
Total 44 100
4.4.3 Benefits Program
Results in Table 4.15 shows that majority (52.3%) of the respondents indicated that a
benefits program enhanced employee engagement to a high extent; this was supported by
27.3% who indicated it enhanced to a very high extent. However, 15.9% were neutral
while 4.6% indicated that it enhanced to a low extent.
42
Table 4.15 Benefits Program
Scale Distribution
Frequency Percentage
Very high 12 27.3
High 23 52.3
Neither High nor Low 7 15.9
Low 2 4.6
Very low 0 0
Total 44 100
4.4.4. Short term Incentives and Employee Engagement
According to 38.6% of the respondents, short term incentives enhance employee
engagement to a very high extent while 36.4% indicated to a high extent. However, 9%
revealed that short term incentives enhanced employee engagement to a low extent while
15.9% indicated neither high nor low. These results are shown in Table 4.16.
Table 4.16 Short term Incentives
Scale Distribution
Frequency Percentage
Very high 17 38.6
High 16 36.4
Neither High nor Low 7 15.9
Low 4 9.1
Very low 0 0
Total 44 100
4.4.5 Long-term Incentives/Bonus Programs and Employee Engagement
The study sought to establish the extent to which long-term incentives and bonus
programs in Safaricom enhanced employees engagement. Results show that 47.7% of the
respondents indicated that long-term incentives and bonus programs enhanced employee
to a high extent while a further 38.6% indicated to a very high extent. On the other hand,
13.6% of the respondents indicated that its effect was neither high nor low while none of
the respondents indicated to a low or very low extent. These results are shown in Table
4.17.
43
Table 4.17 Long-term Incentives or Bonus Programs
Scale Distribution
Frequency Percentage
Very high 17 38.6
High 21 47.7
Neither High nor Low 6 13.6
Low 0 0
Very low 0 0
Total 44 100
4.4.6 Financial Recognition Programme and Employee Engagement
On financial recognition programme, 34.1% of the respondents indicated that it enhanced
employees‟ engagement to a high extent while 29.6% indicated to a very high extent.
However, while 22.7% were neutral, 13.6% of the respondents indicated that financial
recognition programme enhanced employees‟ engagement to a low extent. None of the
respondents indicated to a very low extent. The results are presented in Table 4.18.
Table 4.18 Financial Recognition Programme
Scale Distribution
Frequency Percentage
Very high 13 29.6
High 15 34.1
Neither High nor Low 10 22.7
Low 6 13.6
Very low 0 0
Total 44 100
44
4.4.7 Employee Promotions
The study sought to establish whether the employees‟ promotions in the company were
fair and based on merit; and the extent to which the promotions enhanced employee
engagement. Results in Table 4.19 shows that while 34.1% of the respondents were
neutral on whether employees‟ promotions in the company were fair and based on merit,
29.5% indicated that the promotions were highly fair and based on merit, 13.6% also
indicated to a very high extent. However, 18.2% agreed to this to a low extent while 4.6%
agreed to a very low extent.
Table 4.19 Employees Promotions
Scale Distribution
Frequency Percentage
Very high 6 13.6
High 13 29.5
Neither High nor Low 15 34.1
Low 8 18.2
Very low 2 4.6
Total 44 100
4.4.8 Correlation Analysis- Reward Programmes/Policies
Table 4.20 shows that there was a positive and significant relationship between the
organization‟s competitive advantage and the reward programmes: basic salary level (r=
0.239, p=0.001<0.05); basic salary increase (r=0.188, p=0.014<0.05); benefits and
perquisites program (r=0.124, p=0.032<0.05); short-term incentives or bonus programs
(r=0.233, p=0.002<0.05); long-term incentives and bonus programs (r=0.281,
p=0.033<0.05); financial recognition program (r=0.190, p=0.006<0.05).
45
Table 4.20 Reward Programmes and Competitive Advantage Correlation
Competitive
Advantage
Basic salary level Pearson
Correlation
0.239**
Sig. 0.001
Basic salary increase Pearson
Correlation
0.188
Sig. 0.014
Benefits program Pearson
Correlation
0.124
Sig. 0.032
Short-term incentives or bonus programs Pearson
Correlation
0.233
Sig. 0.002
Long-term incentives or bonus programs Pearson
Correlation
0.281
Sig. 0.033
Financial recognition program Pearson
Correlation
0.190
Sig. 0.006
Employees promotions are fair and based
on merit
Pearson
Correlation
0.075
Sig. 0.108
*. Correlation is significant at the 0.05 level (2- tailed). **. Correlation is significant at
the 0.01 level (2-tailed).
4.4.9 Employee Training Needs
The study here sought to establish the extent to which career development opportunities
such as employee training needs enhanced employees‟ engagement. Results in Table 4.21
shows that 38.6% of the respondents agreed while 15.9% strongly agreed that employee
training needs enhanced employees‟ engagement. However, a significant number (31.8%)
were neutral, 11.4% disagreed while 2.3% strongly disagreed to this.
46
Table 4.21 Employee Training Needs
Scale Distribution
Frequency Percentage
Strongly agree 7 15.9
Agree 17 38.6
Neutral 14 31.8
Disagree 5 11.4
Strongly disagree 1 2.3
Total 44 100
4.4.10 Skills Development Programs
Majority of the respondents (54.5%) agreed while a further 36.4% strongly agreed that
Safaricom provided continuous skills development programmes as an employee
engagement practice. Only 9.1% of the respondents were neutral on this while none of the
respondents disagreed or strongly disagreed. The results are shown in Table 4.22.
Table 4.22 Skills Development Programs
Scale Distribution
Frequency Percentage
Strongly agree 16 36.4
Agree 24 54.5
Neutral 4 9.1
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.4.11 Mentoring Programs
The study shows that 43.2% of the respondents agreed while 27.3% strongly agreed that
the company had incorporated mentoring programs with assigned role models as an
engagement practice. However, 29.5% of the respondents were neutral on this while none
of the respondents disagreed or strongly disagreed. The results are presented in Table
4.23.
47
Table 4.23 Mentoring Programs
Scale Distribution
Frequency Percentage
Strongly agree 12 27.3
Agree 19 43.2
Neutral 13 29.5
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.4.12 Aligning Employees Personal and Organisational Objectives
On the alignment of objectives, majority of the respondents (54.5%) were neutral on
whether the company aligned the employees‟ personal objectives to organizational
objectives in order to enhance employee engagement. However, while 18.2% agreed and
11.4% strongly agreed to this, 15.9% disagreed. The results are presented in Table 4.24.
Table 4.24 Aligning Employees Personal and Organisational Objectives
Scale Distribution
Frequency Percentage
Strongly agree 5 11.4
Agree 8 18.2
Neutral 24 54.5
Disagree 7 15.9
Strongly disagree 0 0
Total 44 100
4.4.13 Correlation Analysis- Career Development Opportunities
On the career development opportunities, the study found out that there was a statistically
significance relationship between the organization‟s competitive advantage and support
of employee training needs (r = 0.368, p=0.000<0.05); provision of continuous skills
development programs (r= 0.231, p= 0.027<0.05); promoting training for employees to
perform multiple jobs (r= 0.186, p= 0.031<0.05); alignment of employees personal
objectives to organisational objectives (r= 0.244, p=0.003<0.05).
48
Table 4.25 Career Development Opportunities and Competitive Advantage
Correlation
Competitive
Advantage
Supports employee training needs Pearson
Correlation
0.368**
Sig. 0.000
Provides continuous skills development
programs
Pearson
Correlation
0.231
Sig. 0.027
Incorporates mentoring programs with assigned
role models
Pearson
Correlation
0.082
Sig. 0.434
Promotes training for employees to perform
multiple jobs
Pearson
Correlation
0.186
Sig. 0.031
Aligns employees personal objectives to
organisational objectives
Pearson
Correlation
0.244
Sig. 0.003
*. Correlation is significant at the 0.05 level (2- tailed). **. Correlation is significant at
the 0.01 level (2-tailed).
4.4.14 Reward Programs and Competitiveness
The study sought to find out the extent to which the current reward program enhances
organization‟s competitiveness. Results in Table 4.26 show that while 40.9% of the
respondents were neutral, 27.3% of the respondents agreed while 13.6% strongly agreed.
However, 18.2% disagreed that reward programs enhanced competitiveness in the
organization, none of the respondents strongly disagreed.
Table 4.26 Reward Programs and Competitiveness
Scale Distribution
Frequency Percentage
Strongly agree 6 13.6
Agree 12 27.3
Neutral 18 40.9
Disagree 8 18.2
Strongly disagree 0 0
Total 44 100
49
4.4.15 Retention of Talented Employees
Majority of the respondents (52.3%) agreed that the opportunities for career development
influenced the engagement of employees resulting in retaining of the most talented
employees in the organization; this was further strongly agreed by 38.6% of the
respondents. However, 9.1% of the respondents were neutral; none of respondents
disagreed or strongly disagreed. Results are shown in Table 4.27.
Table 4.27 Retention of Talented Employees
Scale Frequency Percentage
Strongly agree 17 38.6
Agree 23 52.3
Neutral 4 9.1
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.4.16 Personal Career Development and Competitiveness
The respondents were asked to indicate their extent of agreement on whether
opportunities for personal career development enhance competitiveness in the
organization. Results presented in Table 4.28 shows that 47.7% of the respondents agreed
to this while a further 34.1% strongly agreed. However, 18.2% of the respondents were
neutral on the issue; none of respondents disagreed or strongly disagreed.
Table 4.28 Personal Career Development and Competitiveness
Scale Frequency Percentage
Strongly agree 15 34.1
Agree 21 47.7
Neutral 8 18.2
Disagree 0 0
Strongly disagree 0 0
Total 44 100
50
4.4.17 Team Building and Maximizing Productivity
According to 43.2% of the respondents, team building as an engagement practice
maximized both individual and group productivity in the organization; this was also
strongly agreed by 31.8% of the respondents. Twenty five percent of the respondents
were neutral; none of respondents disagreed or strongly disagreed as shown in Table 4.29.
Table 4.29 Team Building and Maximizing Productivity
Scale Frequency Percentage
Strongly agree 14 31.8
Agree 19 43.2
Neutral 11 25.0
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.4.18 Team Building and Employees Commitment
The study sought to establish whether team building influenced employees‟ commitment.
Results in Table 4.30 shows that while 40.9% of the respondents agreed, 36.4% strongly
agreed that team building had led to employees being united and committed. However,
15.9% of the respondents were neutral while 6.8% disagreed.
Table 4.30 Team Building and Employees Commitment
Scale Distribution
Frequency Percentage
Strongly agree 16 36.4
Agree 18 40.9
Neutral 7 15.9
Disagree 3 6.8
Strongly disagree 0 0
Total 44 100
51
4.4.19 Team Building and Competitiveness
On team building and competitiveness, Table 4.31 shows that 34.1% agreed while 29.5%
strongly agreed that team building activities enhanced overall competiveness in the
organization. Despite the majority agreeing, 22.7% were neutral, 9.1% disagreed while
4.6% strongly disagreed.
Table 4.31 Team Building and Competitiveness
Scale Distribution
Frequency Percentage
Strongly agree 13 29.5
Agree 15 34.1
Neutral 10 22.7
Disagree 4 9.1
Strongly disagree 2 4.6
Total 44 100
4.4.20 Team Building Activities in the Organization
The study sought to establish the various team building activities that Safaricom had
employed. The respondents indicated that the major team building activities in
organizations included outdoor sporting activities/events, club activities and forming
discussion groups. Others included games, exercises, activities and quizzes especially
during workshops, seminars or conferences.
4.4.21 Company’s Standard of Ethical Behaviour and Employees Engagement
The study sought to find out whether the company‟s standard of ethical behaviour
enhanced employees engagement. Table 4.32 shows that 38.6% of the respondents agreed
while 22.8% strongly agreed that Safaricom‟s standard of ethical behaviour enhanced
employees engagement. However, while 25% of the respondents were neutral on whether
the company‟s ethical behaviour enhanced employees‟ engagement, 13.6% disagreed and
none of the respondents strongly disagreed.
52
Table 4.32 Company’s Standard of Ethical Behaviour and Employees Engagement
Scale Distribution
Frequency Percentage
Strongly disagree 0 0
Disagree 6 13.6
Neutral 11 25.0
Agree 17 38.6
Strongly agree 10 22.8
Total 44 100.0
4.4.22 Extent Human Resource Policies Enhance Employees Engagement
Figure 4.5 shows that 45.5% of the respondents agreed to a great extent while 43.1%
agreed to a very great extent that human resource policies in Safaricom enhanced
employees‟ engagement. However, 9.1% indicated that the HR policies enhanced
employees‟ engagement to a moderate extent while 2.3% indicated to a low extent.
Figure 4.5 Extent Human Resource Policies Enhance Employees Engagement
4.5 Organizational Communication and Competitive Advantage
The study sought to find out the relationship between communication in the company and
employee engagement and how it influenced the company‟s competitive advantage. To
achieve this, the study first established the common communication channels used in
Safaricom, the extent to which these communication practices enhanced employees‟
engagement as well as employees‟ performance.
53
4.5.1 Communication Channels Commonly Used in the Organization
The study sought to establish the various communication channels that are commonly
used in Safaricom. Results who that all the respondents 44 (100%) overwhelmingly
revealed that the company used small staff departmental meetings which were either held
weekly or monthly. Further, 93.2% of the respondents indicated that email was a
commonly used communication channel, 86.4% indicated that the company used person
to person chats while 77.3% indicated face to face conversation. However, only 13.6% of
the respondents indicated that the company used video conferencing. These findings are
presented in Table 4.33.
Table 4.33 Communication Channels Commonly Used
Communication Channels Frequency Percentage
Email 41 93.2
Face to face conversation 34 77.3
Video conferencing 6 13.6
Small staff departmental meetings (weekly, monthly) 44 100.0
Person to person chats 38 86.4
4.5.2 Satisfaction with the Company’s Communication Channels
Figure 4.6 shows that 54.5% of the respondents were satisfied while 40.9% were very
satisfied with the company‟s communication channels used to the employee. However,
4.6% of the respondents revealed that they were dissatisfied with the company‟s
communication channels.
Figure 4.6 Satisfaction with the Company’s Communication Channels
54
4.5.3 Information Sharing Meetings
Table 4.34 shows that majority of the respondents (50%) strongly agreed that the
Safaricom had information sharing meetings as a communication practice to engage
employees; this was further agreed by 43.2% of the respondents. Only 6.8% of the
respondents were neutral while none of the respondents disagreed or strongly disagreed.
Table 4.34 Information Sharing Meetings
Scale Distribution
Frequency Percentage
Strongly agree 22 50.0
Agree 19 43.2
Neutral 3 6.8
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.5.4 Circulars on Key Issues
The respondents were asked to indicate extent of agreement on whether the organization
had circulars on key issues of the company such as performance and strategy. Results in
Table 4.35 show that 40.9% of the respondents agreed while 36.4% strongly agreed.
However, 22.7% were neutral while none of the respondents disagreed or strongly
disagreed.
Table 4.35 Circulars on Key Issues
Scale Distribution
Frequency Percentage
Strongly agree 16 36.4
Agree 18 40.9
Neutral 10 22.7
Disagree 0 0
Strongly disagree 0 0
Total 44 100
55
4.5.5 Teams to Promote Staff Interaction and Collaboration
Table 4.36 shows that while 38.6% of the respondents agreed that the organization had
cross function teams to promote staff interaction and collaboration; this was also strongly
agreed by 29.6% of the respondents. However, 31.8% were neutral on that while none of
the respondents disagreed or strongly disagreed.
Table 4.36 Teams to Promote Staff Interaction and Collaboration
Scale Distribution
Frequency Percentage
Strongly agree 13 29.6
Agree 17 38.6
Neutral 14 31.8
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.5.6 Formation of Staff Associations
Table 4.37 shows that majority of the respondents (52.3%) did not agree nor disagree on
whether the organization had formation of staff associations. On the other hand, while
20.5% agreed, 13.6% strongly agreed that there were formation of staff associations.
However, 9.1% of the respondents disagreed while a further 4.5% strongly agreed.
Table 4.37 Formation of Staff Associations
Scale Distribution
Frequency Percentage
Strongly agree 6 13.6
Agree 9 20.5
Neutral 23 52.3
Disagree 4 9.1
Strongly disagree 2 4.5
Total 44 100
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4.5.7 Staff Suggestion Schemes
On the presence of staff suggestion schemes, 54.5% of the respondents were neutral. On
the other hand, while 11.4% disagreed, a similar percentage strongly agreed while 15.9%
further agreed that the organization had staff suggestion schemes. However, 6.8%
strongly disagreed. These results are presented in Table 4.38.
Table 4.38 Staff Suggestion Schemes
Scale Distribution
Frequency Percentage
Strongly agree 5 11.4
Agree 7 15.9
Neutral 24 54.5
Disagree 5 11.4
Strongly disagree 3 6.8
Total 44 100
4.5.8 Two-Way Communication Channel
The study further sought to establish whether the organization embraced a two way
communication channel; that is employee-employer and vice versa. Results in Table 4.39
show that 36.4% of the respondents strongly agreed that it existed. A further 29.5% of the
respondents agreed while a similar percentage were neutral. However, 4.6% of the
respondents disagreed that there was a two way communication channel.
Table 4.39 Two-Way Communication Channel
Scale Distribution
Frequency Percentage
Strongly agree 16 36.4
Agree 13 29.5
Neutral 13 29.5
Disagree 2 4.6
Strongly disagree 0 0
Total 44 100
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4.5.9 Senior Management Communication
Table 4.40 shows that majority of the respondents overwhelmingly that the senior
management communicated the company‟s goals, targets and other activities in the
organization regularly; 47.7% agreed while 40.9% strongly agreed. However, 11.4% of
the respondents were neutral while none of the respondents disagreed or strongly
disagreed.
Table 4.40 Senior Management Communication
Scale Distribution
Frequency Percentage
Strongly agree 18 40.9
Agree 21 47.7
Neutral 5 11.4
Disagree 0 0
Strongly disagree 0 0
Total 44 100
4.5.10 Correlation Analysis- Organizational Communication Practices
On the organizational communication practices, the study found out that there was a
statistically significant relationship between competitive advantage and information
sharing meetings (r= 0.348, p=0.001<0.05); use of circulars on key issues of the company
such as performance and strategy (r= 0.192, p= 0.019); cross function teams to promote
staff interactions and collaborations (r= 0.401, p=0.018<0.05); formation of staff
associations (r= 0.415, p= 0.006); use of two way communication channels (r= 0.358, p=
0.021<0.05). On the other hand, the study found a positive but insignificant relationship
between the organization‟s competitive advantage and staff suggestion schemes (r=
0.249, p= 0.132>0.05); senior management communication of the company‟s goals,
targets and other activities (r= 0.254, p= 0.213>0.05). These findings are presented in
Table 4.41.
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Table 4.41 Competitive Advantage and Organizational Communication Practices
Correlation
Competitive
Advantage
Information sharing meetings Pearson
Correlation
0.348**
Sig. 0.001
Circulars on key issues of the company such as
performance and strategy
Pearson
Correlation
0.192
Sig. 0.019
Cross function teams to promote staff interactions
and collaborations
Pearson
Correlation
0.401
Sig. 0.018
Formation of staff associations Pearson
Correlation
0.415
Sig. 0.006
Staff suggestion schemes Pearson
Correlation
0.249
Sig. 0.132
Our communication channels is a two way
(employee-employer and vice versa)
Pearson
Correlation
0.358
Sig. 0.021
Senior management communicate the company‟s
goals, targets and other plans/ activities in the
organization regularly
Pearson
Correlation
0.254
Sig. 0.213
*. Correlation is significant at the 0.05 level (2- tailed). **. Correlation is significant at
the 0.01 level (2-tailed).
4.5.11 Communication Activities and Employee Performance
The study sought to examine the extent to which communication activities as an
engagement practice enhanced employee performance in Safaricom. The results in Figure
4.7 show that, 43.2% of the respondents agreed to a great extent while 22.7% agreed to a
very great extent that communication practices enhanced employees‟ performance in the
company. On the other hand, 31.8% of the respondents revealed that the communication
activities enhanced employees‟ performance in the company to a moderate extent.
However, 2.3% indicated to a low extent while none of the respondents indicated to no
extent.
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Figure 4.7 Communication Activities and Employee Performance
4.6 Chapter Summary
This chapter looked at the data analysis and interpretation of results. The first section
covered the demographic information such as gender, age, number of years worked in
organisation and level of education. The other three sections looked at the specific
research questions in the study. In the first research question, the study found out that
Safaricom had created an environment to promote employees growth and that it
facilitated the enhancement of employees‟ good health and ensuring employees wellness.
The study established that programs such short-term incentives/bonus programs, long-
term incentives or bonus, the basic salary level, benefits and perquisites program and
base-salary increase highly enhanced employees‟ engagement. On the other hand,
employees‟ career development opportunities such as training and other practices such as
team building were found to enhance employees‟ engagement. Lastly on organization
communication, it was established that the commonly used communication channels used
in Safaricom, were small staff departmental meetings, emails and person to person chats.
Company meetings were used to share information while the senior management used it
as a platform for communicated the company‟s goals, targets. It was found out that
communication practices enhanced employees‟ performance to a great extent. The next
chapter looks at the summary, conclusions and recommendations of the study.
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CHAPTER FIVE
5.0 DISCUSSION, CONCLUSIONS, AND RECOMMENDATIONS
5.1 Introduction
This chapter is a synthesis of the entire report and contains summary of findings,
discussion of the findings, conclusions arrived at, recommendations for improvement and
recommendations for further studies.
5.2 Summary
The general objective of the study was to examine key employee engagement strategies
employed by Safaricom Limited and their influence on the company‟s competitive
advantage. The study sought to investigate the effect of employee-well-being on the
attainment of competitive advantage in Safaricom, investigate the effect of HR policies
and practices on competitive advantage in Safaricom and lastly, establish the effect of
effective organizational communication on the attainment of competitive advantage in
Safaricom.
This study was a case of Safaricom Limited and the research design adopted was a
descriptive research design. The target population comprised of 160 staff in different
managerial levels in Safaricom. Stratified proportionate random sampling technique was
employed to determine the sample size. The population was divided into stratus and from
each stratum a sample of 30% was taken which gave a sample size of 48 respondents. The
respondents included senior managers, administrative managers and the low level
operative managers at Safaricom. The study collected primary data using a structured
questionnaire which consisted of four sections. Primary data was obtained directly from
respondents; the researcher used both personal administration and drop and pick later
methods in the data collection. Before the actual data collection process, a pilot test was
carried out to determine the validity and reliability of the questionnaire. In the data
analysis, both the descriptive and inferential statistics were employed. Inferential statistics
entailed conducting Pearson‟s Correlations analysis which was used to measure the
relationship between variables. The analysis was done with the aid of SPSS software. The
analyzed data was presented in tables and figures.
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The study found that Safaricom had created an environment to promote employees
growth and that it facilitated the enhancement of employees‟ good health and ensuring
employees wellness. The employees were satisfied with the organization‟s policy on
work-life balance to employees. However, the respondents were neutral on whether their
work was fulfilling and whether they were satisfied with the organization. The study also
found out that employee wellbeing enhanced employees‟ engagement to a great extent.
The Pearson correlation results found out that there was a statistically significant
relationship between the organization‟s competitive advantage and work fulfilment,
facilitation of good health; employees‟ wellness; creating an environment to promote
employees growth; organization‟s policy on work-life balance. However, the study found
a negative and insignificant relationship between organization‟s competitive advantage
and the organization culture.
The study established that programs such as short-term incentives/bonus programs, long-
term incentives or bonus, the basic salary level, benefits program and base-salary increase
highly enhanced employees‟ engagement. However, the employees did not agree or
disagree on whether employees‟ promotions were fair and based on merit. The statistical
analysis found a significant association between the organization‟s competitive advantage
and the basic salary level; basic salary increase; benefits program; short-term incentives
or bonus programs; long-term incentives and bonus programs; financial recognition
program. However, the study found an insignificant relationship between the
organization‟s competitive advantage and employees‟ promotions.
On career development opportunities, it was found that the company provided continuous
skills development programs and promoted training for employees to perform multiple
jobs. The company supported employee training needs and that it incorporated mentoring
programs with assigned role models. However, the respondents felt that the company did
not align employees‟ personal objectives to organisational objectives. The respondents
agreed that opportunities for career development influenced the engagement of employees
which enhanced the company to retain the most talented employees thus competitiveness
in the organization. Team building as an engagement practices were also found to
enhance unity and commitment among employees. The standard of ethical behaviour was
also found to enhance employees‟ engagement. Overall, the respondents revealed that
human resource policies and practices in Safaricom enhanced employees‟ engagement.
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The Pearson correlation results found a statistically significant relationship between the
organization‟s competitive advantage and support of employee training needs; provision
of continuous skills development programs; promoting training for employees to perform
multiple jobs; alignment of employees personal objectives to organisational objectives.
However there was an insignificant relation between the organization‟s competitive
advantage and incorporation of mentoring programs with assigned role models.
The study established that the commonly used communication channels used at
Safaricom, were small staff departmental meetings, emails and person to person chats.
Majority of the respondents were satisfied with the company‟s communication channels
used. It was further found out that the company meetings were used to share information
and that the senior management also regularly communicated the company‟s goals,
targets to other employees. The company circulars were also used in passing information
on key issues of the company such as performance and strategy. On overall, it was found
out that communication practices enhanced employees‟ performance to a great extent.
Moreover, the study found out that there was a statistically significant relationship
between competitive advantage and information sharing meetings; use of circulars on key
issues of the company such as performance and strategy; cross function teams to promote
staff interactions and collaborations; formation of staff associations; use of two way
communication channels. However, the study found an insignificant relationship between
the organization‟s competitive advantage and staff suggestion schemes; senior
management communication of the company‟s goals, targets and other activities.
5.3 Discussion
5.3.1 Employees Well-being and Competitive Advantage in Safaricom
The study found that Safaricom had created an environment to promote employees
growth and the organization facilitates enhancement of employees good health and
ensuring employees wellness. Moreover, the respondents agreed that they were satisfied
with the organization‟s policy on work-life balance. This is in line with Pruyne (2011)
who explained that the wellbeing of an individual is characterized by good health or
wellness, comfort, satisfaction with one‟s work and home life, personal prosperity and
some measure of happiness. According to CIPD (2006) employees well-being entails
creating an environment to promote a state of contentment which allows an employee to
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flourish and achieve their full potential for the benefit of themselves and their
organization also avoidance of getting sick.
The findings show that it is clear that Safaricom had ensured the well-being of their
employees which included facilitation of good health, enhancing a good organization
culture and work-life balance policies. However, according to CIPD (2006) the concept of
employee wellbeing encompasses more than the avoidance of getting sick. It also
encompasses multi-dimensional aspect that involves the physical, mental and the social
health of the employee. It is not merely about managing a physical and cultural
environment with the limited aim of not causing harm to employees but also requires
organizations to actively assist people to maximize their physical and mental health. The
well being program needs to address key elements such as the physical, psychological and
social health of an individual.
The correlation results show that there was a significant relationship between the
employees‟ well-being and the company‟s competitive advantage. The real gains and
competitive advantage in Safaricom can therefore be achieved by preventing people from
becoming ill or injured in the first place and creating a conducive working environment.
A study by Watson (2010) established that high-performing companies clearly understand
the health-and-work-behaviour equation. This is why more than 75 percent of the
companies surveyed recently said they regularly measure health status as component of
their overall risk management strategy. It is for this reasons that the top management of
all firms should always strive to drive this equation at all levels. Wellness requires paying
attention to mind and body. According to SHRM (2007), wellbeing programs need to be
non-judgmental, all embracing, and one that helps people to exchange their bad behavior
for good ones. Wellbeing programmes are weighted towards preventative intervention,
striving to ensure that people avoid poor health, chronic conditions, and even terminal
health problems. Well-being initiatives are proactive and work to enable employees to
achieve their full potential, that is, physical, mental, social, intellectual and spiritual.
The findings further show that the work-life balance policies led to employee
performance in the organization; and that the employees‟ well-being enhanced
employees‟ engagement to a great extent. This is in line with a study by the Institute of
Directors (2006) who reported that when employees are in a good state of health and
well-being they perform better. According to the Institute of Directors findings, healthy
64
and fit employees are essential to ensuring a company remains efficient and profitable
and improves an organization‟s ability to maintain or even acquire competitive advantage.
The findings that well-being of employees enhances competitive advantage also concurs
with Waddell and Burton (2006) who revealed that the important elements to be
considered with regard to employee well-being is the attainment of competitive
advantage. This is also in line with the findings of Gallup study (as cited by SHRM,
2007) who found out that employees well-being affect job performance. They explained
that happy and engaged employees are better equipped to handle stress and change, are
much more likely to have a positive relationship with their manager, feel more valued by
their employer and are more satisfied with their lives. The study suggested that
organizations can boost firm productivity if they recognize these issues and help
employees improve their well-being.
5.3.2 Human Resource Policies, Practices and Competitive Advantage in Safaricom
The study found that remuneration and reward programs such short-term incentives/bonus
programs, long-term incentives or bonus, the basic salary level, benefits and perquisites
program and base-salary increase highly enhanced employees‟ engagement. It was found
out that the company provided continuous skills development programs and promoted
training and mentoring programs. These findings are in line with a study by Smeenk et al.
(2006) who found out that compensation, training/development, positional tenure and
career mobility have significant effects on employee‟s organizational commitment which
would further improve employee‟s productivity. Employee commitment is created
through an effective HRM practices and policies. According to Tzafrir et al. (2004) HRM
practices and policies help the organization to increase mutual understanding between the
employees and the employer. Other researchers such as Guzzo and Noonan (1994)
considered HRM practices and policies as a communication channel between employer
and employees.
The existence of human resource policies and programmes in Safaricom is also believed
to build confidence and trust between managers and staff. This is because developing
human resource policy to address specific areas of human resource management is an
investment which, in principle should have positive returns in terms of facilitating
decision making and creating a motivating environment for the employee. According to
Itika (2011), the existence of human resource policies provide a reference and guidance
65
for avoiding inconsistent decision making by managers or those who make decisions in
similar matters and thus affecting different employees over time. HR policies also
minimize inequality in the treatment of employees. Though the existence of human
resource policies cannot guarantee equality in the treatment of employees it facilitates
decentralization, delegation and local empowerment and become the source of power and
authority for those entrusted with the execution of duties affecting employee‟s work and
welfare.
The study also found that, career development opportunities in Safaricom enhanced
employees engagement which enabled the company to retain the most talented employees
thus competitiveness in the organization. This is in line with Bailey (1993) who argued
that practices may have an influence on employee skills and motivation; and that any
HRM practices and policies that increases the employee‟s performance also increases the
output of the company. The results also concurs concurs with the findings of Schuller and
MacMillan (1984) who revealed that effective management of human resources through
human resource policies and practices is an enhanced ability to attract and retain qualified
employees who are motivated to perform. The results of having the right employees
motivated would be greater profitability, low employee turnover, high product quality,
and lower production costs which lead to achievement of competitive advantage.
On overall all the study found out human resource policies and practices in Safaricom
enhanced employees‟ engagement while the regression results show that there is a
positive and significant relationship between the human resource policies, practices and
the company‟s competitive advantage. Various empirical studies provide evidence to
show that HRM practices and policies help the organization to improve organizational
success and achieve competitive advantage. For instance a study Tsaura and Lin (2004)
established that HRM practices had partially a direct effect on customer perceptions of
service quality and an indirect effect through employees‟ service behavior. This means
that service behavior only partially mediates the relationship between human resource
management practices and service quality. Good customer perceptions about the
organization helped in creating customer loyalty thus maintaining the organization‟s
competitive advantage. The results also concurs with the study by Rondeau and Wager
(2001) who found out that nursing homes, which had implemented more „progressive‟
HRM practices and policies and which reported a workplace climate that strongly valued
66
employee participation, empowerment and accountability tended to be perceived to
generally perform better on a number of valued organizational outcomes. These nursing
homes were also preferred to their counterparts due to their service and the dedication of
their employee for the benefit of the nursing homes. Thus effective HRM practices and
policies lead to improved organizational performance and competitive advantage.
5.3.3 Organizational Communication and Competitive Advantage in Safaricom
The study found that the commonly used communication channels used in Safaricom,
were small staff departmental meetings, emails and person to person chats. These majorly
used communication channels enhances a two way communication and feedback. A study
by Parks (2005), established that HR professionals who use communication channels that
facilitate employee feedback rated the effectiveness of these interactions as “good” or
“very good”. It has also been shown that employee voice has a positive effect on
employee trust in supervisors, organizational commitment and satisfaction with company
decisions which in turn leads to increased employee engagement. However, according to
Potter, (2006) these communication channels can have the probability of having a
negative effect on the organization especially if employees suspect their input will not be
considered in the final decision or question the real motives for being asked for their
opinions.
The findings further show that majority of the respondents were satisfied with the
company‟s communication channels used. This is to mean that the channels of
communication used in Safaricom were effective. According to Blazenaite (2011),
effective organizational communication actively engages employees, foster trust and
respect, and promote productivity. Moreover, Riel and Fombrun (2007) pointed out that
communication is at the heart of organizational performance thus effective organizational
communication is necessary for the business to either gain or maintain competitive
advantage.
It was found that the company used meetings in sharing information on the company and
that the senior management also regularly communicated the company‟s goals, targets to
other employees. The company circulars were also used in passing information on key
issues of the company such as performance and strategy. According to Gargiulo (2005)
effective organizational communication is key in leveraging the relationships between
employees and top management. This is also affirmed by a study by Watson (2008)
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which found out that firms that communicate effectively are four times likely to report
high levels of employee engagement than firms that communicate less effectively.
The study also established that communication channels in Safaricom facilitated a two
way communication (employee-employer and vice versa). According to a study by
Blazenaite (2011), a two-way communication contributes to good employee-organization
relationships while a one-way communication had a negative association with employee
trust, satisfaction and commitment. However, Kim (2007) asserts that effective
communication must be combined with fair policies, systems and management behaviour
to establish positive employee-organization relationships which would lead organization
performance which also influences competitive advantage. This is also in line with
findings of SHRM (2008) which shows that clear, consistent and honest communication
is an important management tool for employee engagement and retention; and is critical
for long-term organizational success.
Overall, it was found that communication practices enhanced employees‟ performance to
a great extent and there was a positive relationship between communication practices in
Safaricom and competitive advantage. This concurs with Gargiulo (2005) who posits that
effective organizational communication contributes to learning, teamwork, safety,
innovation and quality of decision making in organizations thus making communication a
strategic tool for employee engagement, satisfaction and retention. He further asserts that
effective organizational communication contributes directly to employee and
organizational learning, an essential factor for competitive advantage.
Moreover, to achieve effective organizational communication in Safaricom, there is need
for management‟s support and will to use communication channels that facilitate
employee feedback. According to Kress (2005), a participatory management practice also
creates opportunities for employee voice by encouraging upward communication and
facilitating employee input in organizational decisions for the benefit of the organization.
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5.4 Conclusions
5.4.1 Employees Well-being and Competitive Advantage in Safaricom
The study concludes that Safaricom had created an environment to promote employees‟
good health and ensuring employees wellness. This was achieved by having a satisfactory
policy on work-life balance to employees. The well-being of the employees ensured that
employees were engagement and committed and enables employees achieve their full
potential physically, mentally, socially and intellectually which increases their
productivity. Healthy and fit employees are essential to ensuring a company remains
efficient and profitable thus gaining competitive advantage.
5.4.2 Human Resource Policies, Practices and Competitive Advantage in Safaricom
The study concludes that there is a significant relationship between the human resource
policies, and competitive advantage of Safaricom. Policies such as remuneration and
reward programs, career development and growth opportunities, team building activities
enhanced employees‟ engagement which further enhances employee unity and
commitment. Well remunerated employees and remuneration and existence of career
development and growth opportunities enhances the ability to attract and retain qualified
employees who are motivated to perform thus increasing productivity and attainment of
competitive advantage.
5.4.3 Organizational Communication and Competitive Advantage in Safaricom
The study concludes that communication key in enhancing employees‟ engagement in an
organization. Company meetings are very essential as they give employees and the
management a platform to share information while the senior management also
communicate the company‟s goals, targets to the employees; this would keep the
employees engaged and committed. However, the Safaricom should ensure that all the
communication channels in the company enhances a two way communication; since this
would contribute to good employee-organization relationships, trust, satisfaction and
commitment; this would lead to retention of employees and improved productivity which
leads to attainment of competitive advantage.
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5.5. Recommendations
5.5.1 Recommendations for Improvement
5.5.1.1 Employees Well-being and Competitive Advantage in Safaricom
The results of the study found that though the organization facilitated the enhancement of
good health and employees‟ wellness; however, some of the employees felt that their
work was not fulfilling and that they were not satisfied with the organization culture. The
study recommends that, since the employees have increased responsibilities at home and
a desire to excel in their careers, the organization should ensure that employees have the
freedom to make their work exciting and an environment that would make their work life
comfortable and fulfilling. Since employees are the most powerful contributor to an
organization‟s competitive position, Safaricom should give the employees space where
they can make a perfect blend of both work, and family/personal life.
5.5.1.2 Human Resource Policies and Competitive Advantage in Safaricom
The study recommends that the HR department should continue to come up with more
policies to enhance employees‟ engagement. This would more effectively foster
employee satisfaction, commitment, engagement and motivation within the organization.
Further, the management should specifically define employee engagement and include it
as goal in the strategic plan so that any policy developed would be based on ensuring that
the employees are more engaged thus gaining competitive advantage.
5.5.1.3 Organizational Communication and Competitive Advantage in Safaricom
The study recommends that Safaricom should facilitate and ensure formation of staff
associations as well as staff suggestion schemes in a bid to ensure that employees‟
grievances are acted upon. The company should follow the open door policy. There
should be both upward and downward communication with the use of appropriate
communication channels in the organization. This would go a long way in ensuring an
effective two- way communication channel as well as improving the employees‟
engagement levels.
70
5.5.2 Recommendations for Further Studies
The researcher recommends that a replica study be conducted in another sector for
instance the banking sector for comparison of results. Moreover, this study just
concentrated on only three employee engagement strategies, however, engagement
strategies are several; therefore the future study should to be conducted should look at
other employee engagement practices that organizations can adopt in a bid to improve a
company‟s competitive position.
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APPENDIX 1: QUESTIONNAIRE
Dear Sir/ Madam,
I am undertaking an academic research project to determine the effect of optimizing
employee engagement strategies on your organization’s competitive advantage. This
questionnaire seeks to collect data on the employee engagement practices of your
organization and therefore establish the effect of this on the organization’s competitive
advantage. To this end I would like to kindly request you to complete the following
questionnaire by ticking appropriately or writing down your answer in the space
provided. It should take no longer than 10 minutes of your time. Please do not enter your
name or contact details as all information provided is to remain anonymous. Your
cooperation and feedback is valued and highly appreciated.
Yours Sincerely,
Hazel A. Ochieng
SECTION A: Demographic Information
1. Gender
Male [ ] Female [ ]
2. Age Category
20-29 [ ] 30-39 [ ] 40-49 [ ] 50-59 [ ]
3. Years of work experience
0 – 3years [ ] 4 – 7years [ ] 8 – 10years [ ] Over 11years [ ]
4. what is your highest academic qualification
O - Level [ ] A- Level [ ] College [ ] University [ ]
5. What is your position in this organization?
________________________________________________________
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6. Compared to your competitors, does your organization produce higher quality
products?
Agree [ ] Disagree [ ] Not sure [ ]
7. The customer service of Safaricom is superior as compared to other competitors?
Agree [ ] Disagree [ ] Not sure [ ]
SECTION B: Employee-Well-Being
To what extent do you agree with the following statements?
Str
ongly
dis
agre
e
Dis
agre
e
Neu
tral
Agre
e
Str
ongly
Agre
e
8. My work is fulfilling
9. The organization facilitates the enhancement of
my good health
10. The organization ensures employees wellness
11. I am satisfied with the organization culture
12. The organization has created an environment to
promote employees to growth
13. I am satisfied with the organization‟s policy on
work-life balance to employees
14. Work-life balance policies enhance employee
performance in your organization
15. To what extent do the employee wellbeing enhance employees engagement in your
organization
To a very great extent [ ] To a great extent [ ] To a moderate extent [ ]
To a Low extent [ ] To No extent [ ]
82
Section C: HR Policies and Practices
16. To what extent do you feel the following remuneration and reward programs enhance
employee engagement: use a scale of 1-5 where 1 is Very Low, 2- Low, 3- Neither, 4-
High, 5- Very High
Reward Programs/Policies 1 2 3 4 5
Base salary level
Base-salary increase
Benefits program
Short-term incentives or bonus programs
Long-term incentives or bonus programs
Financial recognition program
Employees promotions are fair and based on merit
Others……
17. To what extent do you agree with the following statements on career development
opportunities as an engagement practice in your organization? Use a scale of 1-5
where; where 1 is Strongly disagree, 2 is Disagree, 3 is Neutral, 4 is Agree, 5 is
Strongly agree
Our organization: 1 2 3 4 5
Supports employee training needs
Provides continuous skills development programs
Incorporates mentoring programs with assigned role models
Promotes training for employees to perform multiple jobs
Aligns employees personal objectives to organisational objectives
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To what extent do you agree with the following statements?
Str
ong
ly
dis
agre
e
Dis
agre
e
Neu
tral
Ag
ree
Str
ong
ly
Ag
ree
18. The current reward programs enhance competitiveness
of your organization?
19. Opportunities for career development influence the
engagement of employees and therefore results in the
retainment of the most talented employees in the
organization
20. The opportunities for personal career development
enhance the competitiveness of your organization
21. Team building as an engagement practice in your
organization seeks to maximize both individual and
group productivity
22. Team building leads to employees being united and
committed
23. The team building activities in your organization
enhance its overall competitiveness
24. Which Team building activities does your organization have?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
25. The company‟s standard of ethical behaviour enhances engagement of employees
Strongly disagree [ ] Disagree [ ] Neutral [ ] Agree [ ]
Strongly agree [ ]
84
26. What other HR policies and practices does your organization have, and how do they
affect employee engagement and performance?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
27. On overall, to what extent do the human resource policies in your organization
enhance employees engagement
To a very great extent [ ] To a great extent [ ] To a moderate extent [ ]
To a Low extent [ ] To No extent [ ]
Section D: Organizational Communication and Competitive Advantage
28. Which communication channels does your organization commonly use? Tick all that
apply.
Face to face conversation
Video conferencing
Small staff departmental meetings (weekly, monthly)
Person to person chats
Others (specify)__________________________________
29. To what extent are you satisfied with the company‟s communication channels to the
employee?
Very satisfied [ ] Satisfied [ ] Dissatisfied [ ]
Very Dissatisfied [ ]
85
To what extent do you agree with the following statements regarding Communication
Activities in your organization? Use a scale of 1-5 where; where 1 is Strongly disagree, 2
is Disagree, 3 is Neutral, 4 is Agree, 5 is Strongly agree
Our organization has: 1 2 3 4 5
Information sharing meetings
circulars on key issues of the company such as performance and strategy
Cross function teams to promote staff interactions and collaborations
formation of staff associations
staff suggestion schemes
Our communication channels is a two way (employee-employer and vice versa)
Senior management communicate the company‟s goals, targets and other
plans/ activities in the organization regularly
30. To what do extent communication activities as an engagement practice in your
organization enhance employee performance?
To a very great extent [ ] To a great extent [ ] To a moderate extent [ ]
To a Low extent [ ] To No extent [ ]
