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International Journal of Research in Management & Business Studies (IJRMBS 2015)Vol. 2 Issue 1 Jan. - Mar. 2015 ISSN : 2348-6503 (Online)

ISSN : 2348-893X (Print)

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

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

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

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

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

organization• To study the reasons behind engagement and

disengagement• To help the organization in improving the engagement levels

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

engagement.

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

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

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

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

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International Journal of Research in Management & Business Studies (IJRMBS 2015) Vol. 2 Issue 1 Jan. - Mar. 2015 ISSN : 2348-6503 (Online)


Data Analysis & InterpretationTable 1.1: Job CommitmentSr. No

Particulars Strongly Agree

Agree Neutral Disagree Strongly Disagree

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

contributes to the company’s objectivise20(28.57) 35(50.00) - 15(21.43) -

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

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

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

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

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

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

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

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

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

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

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

Table 1.2.About Your BusinessSr. No



1. I see a strong link between my individual work goals and company’s goals

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

2. I have a good understanding of each of my company’s objectives and goals

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

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

Table 1.3.Work Life Balance and Work Conditions

Sr. No



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

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

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




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

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

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

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

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

Table 1.4.CultureSr. No



1. I believe the organization provides equal opportunities to all

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

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

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

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

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

4. I fail to understand how company’s shared (common) values apply to my work

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

5. I feel comfortable working in my company’s work environment and culture

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

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

Table 1.5.LeadershipSr. No



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

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

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

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

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

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

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

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

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

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

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

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




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

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

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

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

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

Table 1.6.CompensationSr. No



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

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

3. My performance has a significant increase on my pay in-crease

15(21.43) 40(57.14) - 13(18.57) 2(2.86)

4. In my company the overall benefit plan fulfils all mine and my family’s needs

6(8.57) 40(57.14) - 21(30.00) 2(4.29)

5. If my company’s finances improve, I will have some share in its financial success

13(18.57) 37(52.86) - 17(24.29) 3(4.29)

Figure in parenthesis indicates percentage. Source Field Investigation From the above table, it can be seen that Despite so many innovative employee perks and work life initiatives, it continues to be essential that employees feel they are paid fairly for the work they perform. That’s not to suggest that nonmonetary factors don’t contribute significantly to job satisfaction. They absolutely do. Things like flexible work schedules or casual dress codes can play a big part in the attitudes people have about their company and their job. But at the end of the day, money still matters. In the absence of everything else, it remains crucial that companies offer competitive compensation if they hope to attract and retain top talent.

Table 1.7.Interpersonal SupportSr. No



1. I have a confidence in the ability of my team 13(18.57) 52(74.29) - 2(7.14)2. I receive effective support and recognition from my immediate

colleagues15(21.43) 49(70.00) - 5(7.14) 1)1.43)

3. Cooperation between teams and departments is encouraged in this organization

8(11.43) 44(62.86) - 15(21.43) 3(4.29)

Figure in parenthesis indicates percentage. Source Field Investigation From the table above it can seen that strong interpersonal connection supports the employee to the larger extent. The conduct of successful managers generates enthusiasm and inspires employees to work harder, creating a culture of employee engagement. Conversely, supervisors who “manage” at arms’ length and discourage open communication serve neither their employees – nor their employers. Satisfaction with an immediate supervisor and colleagues is the single most important factor that determines the enthusiasm and commitment of employees. Poor interpersonal skills poison a workplace and destroy teams.

Table 1.8.CommunicationS r . No



1. I receive the information and communication about the issues that interests me or are concerned with my job

8.(11.43) 55(78.57) - 7(10.00) -




2. In my organization there is open and honest two way communication between all employees

12(17.14) 32(45.71) - 23(32.86) 3(4.29)

3. I feel able to share ideas, suggestions and concerns I may have at work

12(17.14) 48(68.57) - 10(14.29) -

Figure in parenthesis indicates percentage. Source Field Investigation The most crucial skill that one can have is the ability to communicate effectively with others, yet so few of us do it well. Boosting employee engagement is often at the forefront of HR and management initiatives, which often leads to countless surveys, meetings, reward schemes and other new programmes. But the simplest way to increase engagement is sometimes overlooked – it starts with the day-to-day communication as most of the problems in the organizationoccur because of lack of communication. Communicating with your employees regularly helps ensure everyone understands the business objectives and goals, Table 1.9.Growth and DevelopmentSr. No



1. My job provides me with the opportunity to prepare myself for future advancement in this organization

13(18.57) 47(67.14) - 10(14.29) -

2. The performance appraisal process provides me with coaching and feedback to improve my job and identify areas needing improvement

13(18.57) 36(51.53) - 16(22.86) 5(7.14)

3. I feel I am learning and growing in the job 18(25.71) 43(61.43) - 9(12.86) -

Figure in parenthesis indicates percentage. Source Field Investigation The above table clearly indicates that Employee engagement is a key to the retention. Only giving salary sometimes doesn’t solve the purpose, so the organization must also give proper opportunity for employees growth and advancement, a proper feedback, their performance appraisal, identifying the need and its improvement etc. an engaged employee tends to be more productive and lucrative as compared to non-engaged employees

Table 1.10.Organizational IdentificationSr. No



1. I believe that my organization has outstanding future and is clear of where it’s going to get there

23(32.86) 42(60.00) - 5(7.14) -

2. It rarely crosses my mind to leave my company and work in some other

4(5.71) 43(61.43) - 22(31.43) 1(1.43)

3. I am not inspired to do my best everyday 6(8.57) 18(25.71) - 43(61.43) 3(4.29)4. When needed I would definitely recommend my company to a

friend, associate and acquaintance seeking employment13(18.57) 46(65.71) - 10(14.29) 1(1.43)

5. When it comes to the company’s success, I am ready to walk that extra mile and exceed the expectations of my employees

23(32.56) 40(57.14) - 7(10.00) -

6. I have a job security in this organization compared to other similar organizations

23(32.86) 385(54.29) - 9(12.86) -

Figure in parenthesis indicates percentage. Source Field Investigation With increasing energy being invested by HR departments into becoming an ‘employer of choice’, more attention is being paid to the management of an organization’s corporate image and the extent to which employees identify and share the values of their employing organization (Edwards, 2005). People management plays in encouraging employees to identify with their employing organization. Employee perceptions of the HR environment play in encouraging organizational identification and the importance of perceived organizational support in this relationship. A company that fosters high levels of identification will benefit from having a workforce that shares its principal goals and values, and from having employees that exhibit increased feelings of membership and belonging. Thus the same can be observed form the above table that how organizations image or culture motivates a person to give their best in the organisation




Concluding RemarksEngaged employees can help your organization achieve its mission, execute its strategy and generate important business results. This report has highlighted ways in which different HR practices, including job design, recruitment, selection, training, compensationand performance management can enhance employee engagement. But these examples also show that employee engagement is more complex than it may appear on the surface. Organizations define and measure engagement in a variety of different ways, suggesting there is no one “right” or “best” way to define or stimulate engagement in your workforce. The decision to invest in strengthening engagement or commitment (or both) depends on an organization’s strategy and the makeup of itsWorkforce.For these reasons, it is vital to consider your own organization’s view of engagement, as well as its strategy and workforce composition when deciding which HR practices will receive scarce investment dollars. The research, guidelines and examples provided in this report—as well as the annotated bibliography—can help you begin to weigh the options and to craft an investment plan that will best suit your organization’s unique circumstances.

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Authors’ Profile

Ms. Punam Singh- Masters in Human Resource Management (MHRM) & M.Phil in Management in 2014 from Swami Sahajanand Group of College Commerce and Management, BhavnagarUniversity, Gujarat, India. She has been associated with the Department of Social Work, Sardar Patel University, Vallabh Vidyanagar, Anand , Gujarat, since 2009. . She has published papers in various National and International

journal of Management Punam Singh can be contacted at: [email protected]




Mr. Jitendra Lalvani has done Master of Human Resource Management from Sardar Patel University, Anand, Gujarat, India, Post Graduate Diploma in Labour Practices (P.G.D.L.P) from Faculty of Law, Maharaja Sayajirao University of Baroda,Gujarat, India.Right now he is pursuing his Post Graduate Diploma in Human Resource Development (P.G.D.H.R.D) from the Department of Business Studies,

Sardar Patel University, Anand, Gujarat, India. He is working as an Assistant Professor in Department of Social Work, Sardar Patel University, Anand, Gujarat, India since July, 2013. He has presented many Research Papers in International Journals.