Content on Employee Engagement

8/6/2019 Content on Employee Engagement

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CHAPTER-1

INTRODUCTION

It is the need of the hour that, Organizations should increasingly convert from traditionalism

to the contemporary learning and individualized corporations. With growing opportunity and

greater flow of information, employees today want to be in the best workplaces handling the

best suited responsibilities and enjoy greater autonomy.

Therefore, engaging the employees to the work as per their competency level must occupy

the centre stage not only for the HR department but also for the immediate bosses. The extent

that an employee believes in the mission, purpose and values of an organization anddemonstrates that commitment through their actions and their attitude towards the employer

(both internal & external) will determine the employee satisfaction towards his/her work.

Employee engagement is high when the statements and conversations held reflect a natural

enthusiasm for the company, its employees and the products or services provided.

Employee engagement is the level of commitment and involvement an employee has towards

their organization and its values. An engaged employee is aware of business context, and

works with colleagues to improve performance within the job for the benefit of the

organization.

1.1- MEANING OF EMPLOYEE ENGAGEMENT:

In other words, employee engagement can be described as:

The degree to which an employee is emotionally bonded to his/her organisation and is

passionate about the work that really matters. The organization must work to develop and

nurture engagement, which requires a two-way relationship between employer and employee.

Thus Employee engagement is a barometer that determines the association of a person within

the organization.

Engagement can also be defined as the extent to which people enjoy and believe in what

they do and feel valued for doing it.

Engagement is important for managers to cultivate given that disengagement or alienation is

central to the problem of workers lack of commitment and motivation. Meaningless work is

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often associated with apathy and detachment from ones works. In such conditions,

individuals are thought to be estranged from their selves. Other Research using a different

resource of engagement (involvement and enthusiasm) has linked it to such variables as

employee turnover, customer satisfaction loyalty, safety and to a lesser degree, productivity

and profitability criteria.

Fig 1.1: Variables of Engagement

Employee commitment and engagement is measured by three primary behaviours

Say, Stay and Strive.

'Say' is evidently achieved if the employee consistently speaks positively about the

organisation to co-workers and refers potential employees and customers.

'Stay' refers to the employee's intensive desire to be a member of the organisation,

despite opportunities to work elsewhere.

'Strive' indicates an extra effort and behaviours that contribute to business success.

As organizations globalize and become more dependent on technology in a virtual workingenvironment, there is a greater need to connect and engage with employees to provide them

with an organizational identity. Employee engagement plays a greater role in the current

era where every contribution by each of the employee counts. Employee engagement

programmes throw light into the success of the company in engaging its employees in the

productive activities.

Employee engagement is not just the process of engaging the employees productively. It also

expects the organization to pave the way to ensure that the employees are motivated to put in

their best efforts for the wealth maximization. This requires building loyalty which can inject

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commitment in doing quality work. The mission must be well defined and supported by well

set organizational plans and policies for its attainment. The management is also to provide

with the set of tools and material that are necessary for performing the task effectively.

1.2-WHAT DOES AN ENGAGED EMPLOYEE THINK, FEEL & DO?

Fig 1.2 Engaged Employee

Various researches have been conducted in the past and all of them have one thing in

common that if an organization wants to sustain in the long run then it is really essential for it

to have an engaged workforce. Employees feel engaged when they find personal meaning and

motivation in their work, receive positive interpersonal support, and operate in an efficient

work environment. All efforts are made on maximizing employee output and making the

most of organizational resources. An engaged workforce takes an organization to great

heights.

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1.3-LEVELS OF ENGAGEMENT

1. Engaged

Work with passion

Feel connected to work, employer

Drive innovation

2. Not engaged

Checked out or retired on the job

Putting in their time, not their energy

3. Actively disengaged engaged

Interfere with others productivity

1.4-ENGAGED BEHAVIOUR

High levels of effort

Persistence at difficult tasks

Providing assistance to others

Going above and beyond

Making recommendations

Expanding personal

Adapting to change

An organizations capacity to manage employee engagement is closely related to its ability to

achieve high performance levels and superior business results.

Research has proved that employee engagement begins from day one repairing employees for

their new roles and communicating how they can help the firm meets its goals can go a long way

toward determining whether new employees ultimately succeed.

The main requirement is to focus on improving communication, both to managers who do hiring

and to employee's themselves.

Organizations seeking ways to build a motivated, satisfied and engaged workforce should

start by putting in place structured and well-planned orientation programmes for their new

employees.

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1.5-ENGAGEMENT IS LINKED TO THREE ESSENTIAL FORCES IN THE

ORGANIZATION - ATTRITION, PRODUCTIVITY & PROFITABILITY:

Attrition is the number of people leaving the organization and it's a well-known fact that is

one of the major problem being faced by the organizations be it any sector. An engaged

workforce definitely has less chances of leaving the organization, a person who is engaged in

his work is likely to stick to the company as he offers his best and as result of which the

organizations takes due care of him in the form of hike in salary by way of incentives and

bonus. Attrition is likely to come down in the organization, which have engaged workforce

and this will get in the likely benefits for the organization.

Productivity is the output of the workers in the form of work done by them its not the

quantity that matters it's the quality that is of importance for the organization. An engaged

workforce has an understanding of what is expected of them at work so thus they are able to

carry on their task effectively and efficiently thus adding to the productivity of the

organization and thus adding to the growth and success of the organization.

Profitability is the ability of a company to earn a profit. It is a relative measure of success for

a business. Research has proved that an engaged workforce is likely to result in an increase in

the profitability of the concern as they have complete dedication and commitment to their

work and thus this is likely to result in an increase in the profit of the concern and thus

ensuring the success of the organization.

The organizations Most organizations have today realized that a satisfied employee is not

necessarily the best employee in terms of loyalty and productivity. It is only an Engaged

Employee who is intellectually and emotionally bound with the organization who feels

passionate about its goals and is committed towards its values thus he goes the extra mile

beyond the basic job.

1.6-FACTORS AFFECTING EMPLOYEE ENGAGEMENT

Workplace Culture

Organizational Communication

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Managerial Styles

Leadership

Company Reputation

Access to Training & Career Opportunities

Work/ life Balance

Personal Empowerment

1.7-DIMENSIONS RELATED TO EMPLOYEE ENGAGEMENT

1. Physical dimension

Levels of energy or effort

Persistence

2. Emotional dimension

Enthusiasm and inspiration

Sense of significance, pride, and challenge

Feelings about job, supervisor, management, organization

3. Intellectual dimension

Mental focus

Level of concentration

Absorption in tasks

Beliefs about organization, leaders, workplace culture

1.8-LEVERAGING ENGAGEMENT

I. Job and task design

II. Recruitment and selection

III. Training and development

IV. Performance management

V. Compensation

I. JOB AND TASK DESIGN

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-Motivational characteristics of work

Skill variety

Task significance

Autonomy

Performance feedback

-Social characteristics of work

Interdependence of job roles

Feedback from others

Advice and support of coworkers

II. RECRUITMENT AND SELECTION

Recruitment selection

Target recruitment

Choose best-suited candidates

III. TRAINING AND DEVELOPMENT

Employee orientation

Knowledge and skills training

IV. PERFORMANCE MANAGEMENT

Set challenging goals

Provide positive feedback and recognition for accomplishments

Resolve performance problems

V. COMPENSATION

Incentive pay

Flexible benefits

VI. MANAGERS BEHAVIORS

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Commitment to diversity

Responsible for success/failure

Honesty and integrity

Problem solving assistance

Respect for employees

Setting realistic expectations

Passion for success

Defending employees

1.9-BARRIERS TO ENGAGEMENT

Outside of local control

Damaging to employees and customers

Emphasize control of employee behavior

Barriers can be removed

Root causes:

-Fear

-Flow of information

-Organizational alignment

-Reward system

-Short term focus

1.10-INCREASING ENGAGEMENT:

Communicate organizational goals and objectives

Promote employee engagement culture

Align day to day work with organizational goals

Maintain open dialogue

Reward supportive behavior

Listen to employees

Provide challenges and opportunities

Do a pulse check

Hold managers accountable

Let employees know how they can contribute

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Genuinely thank employees

Now employers take all reasonable steps to ensure that they have engaged workforce like

organizing birthday bashes, talent shows, sports activities and many other things. They want

their employees to be committed to their work fully besides all the above activities they also

make sure that the employees have role clarity, get all the material and equipment they

require to perform their work efficiently etc.

1.11-ADVANTAGES OF ENGAGED EMPLOYEES :

a) Engaged employees will stay with the company, be an advocate of the company and

its products and services, and contribute to bottom line business success.

b) They will normally perform better and are more motivated.

c) There is a significant link between employee engagement and profitability.

d) They form an emotional connection with the company. This impacts their attitude

towards the companys clients, and thereby improves customer satisfaction and

service levels.

e) It builds passion, commitment and alignment with the organizations strategies and

goals

f) Increases employees trust in the organization

g) Creates a sense of loyalty in a competitive environment

h) Provides a high-energy working environment

i) Boosts business growth

j) Makes the employees effective brand ambassadors for the company

A highly engaged employee will consistently deliver beyond expectations. In the

Workplace research on employee engagement have repeatedly asked employees whether

they have the opportunity to do what they do best everyday. Those work units scoring higher

on this perception have substantially higher performance.

Thus employee engagement is critical to any organization that seeks to retain valued

employees. There are companies which have proved that there is an intrinsic link between

employee engagement, customer loyalty, and profitability. As organizations globalize and

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become more dependent on technology in a virtual working environment, there is a greater

need to connect and engage with employees to provide them with an organizational identity.

MEASURES FOR EMPLOYEE ENGAGEMENT

A research consistently confirms that engaged work places compared with least engaged are

much more likely to have lower employee turnover, higher than average customer loyalty,

above average productivity and earnings. These are all good things that prove that engaging

and involving employees make good business sense and building shareholder value. Negative

workplace relationships may be a big part of why so many employees are not engaged with

their jobs.

Step I: Listen

The employer must listen to his employees and remember that this is a continuous

process. The information employees supply will provide direction . This is the only way

to identify their specific concerns. When leaders listen, employees respond by becoming

more engaged. This results in increased productivity and employee retention. Engaged

employees are much more likely to be satisfied in their positions, remain with the

company, be promoted, and strive for higher levels of performance.

Step II: Measure current level of employee engagement

Employee engagement needs to be measured at regular intervals in order to track its

contribution to the success of the organisation.

But measuring the engagement without planning how to handle the result can lead employees

to disengage. It is therefore not enough to feel the pulsethe action plan is just as essential.

Knowing the Degree in which Employees Are Engaged?

Employee engagement satisfaction determine the current level of employee engagement. A

well-administered satisfaction survey will let us know at what level of engagement the

employees are operating. Customizable employee surveys will provide with a starting point

towards the efforts to optimize employee engagement.

The key to successful employee satisfaction is to pay close attention to the feedback from the

staff. It is important that employee engagement is not viewed as a one time action. Employee

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engagement should be a continuous process of measuring, analyzing, defining and

implementing.

The companies following employee engagement keep asking workers, number of questions

relating to their job satisfaction. The feedback thus generated is a system for employers that

would identify and measure elements of worker engagement most tide to the bottom line.

Things such as sales, growth, productivity and customer loyalty are all accessed.

According to a study a profit chain establishes relationship between

profitability, customer loyalty and employee satisfaction, loyalty and

productivity. The links in the chain (which should be regarded as

propositions) are as follows: profit and growth are stimulated primarily by

customer loyalty. Loyalty is a direct result of customers satisfaction.

Satisfaction is largely influenced by the services provided to customers.

Satisfied, loyal and productive employees create value. Employees

satisfaction in turn results primarily from high quality support services and

policies that enable employees to deliver results to customers. While

many organizations are beginning to measure relationship between

individual links in the service only a few have related the links in the

meaningful ways that can lead to comprehensive strategies for achieving

lasting competitive advantage of building employee engagement.

Step III-Identify the problem areas

Identify the problem areas to see which are the exact areas, which lead to

disengaged

Employees

Step IV-Taking action to improve employee engagement by acting

upon the problem areas

Nothing is more discouraging to employees than to be asked for their

feedback and see

no movement toward resolution of their issues. Even the smallest actions

taken to address

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concerns will let the staff know how their input is valued. Feeling valued

will boost morale, motivate and encourage future input. Taking action

starts with listening to employee feedback and a definitive action plan will

need to be put in place finally.

Extraneous variables may not necessarily be trivial and could have significant effects. There

is much evidence in the literature for the effect of individual differences on work

performance. Khan (1990) focused on identifying psychological conditions general enough to

explain personal engagement and disengagement across individuals. Yet Khan presumed that

individual differences shape peoples dispositions toward personally engaging or

disengaging in all or some types of role performances (1990, p. 718), just as they shape

peoples abilities and willingness to be involved or committed at work. People would engage

differently, given their experiences of psychological meaningfulness, safety and availability

in specific situations (Khan, 1990, p 718).

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CHAPTER-2

OBJECTIVE OF THE STUDY

The study aims to understand how employee engagement helps in increasing productivity,

profit, recruitment, retention, efficiency and quality of work delivered.

To measure employees activities alignment with company strategy.

Studying the approaches of employees engaged to increase the productivity of the

organization.

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CHAPTER-3

LITERATURE REVIEW

EMPLOYEE ENGAGEMENT

Engagement at work was conceptualized by Khan in the year 1990 as the harnessing of

organizational members selves to their work roles. In engagement, people employ and

express themselves physically, cognitively, and emotionally during role performances.

The second related construct to engagement in organizational behavior is the notion of

flow advanced. Flow is defined as the holistic sensation that, people feel when they act with

total involvement. Flow is the state in which there is little distinction between the self and

environment.

Khan argued that engagement was a multidimensional construct, in that employees could be

emotionally, cognitively or physically engaged. For psychological engagement and

organizational behaviours, the two major dimensions were emotional and cognitive

engagement.

Employees could be engaged on one dimension and not the other. The more engaged an

employee was on each dimension, the higher his/her overall personal engagement.

Khan asserted that employees experienced dimensions of personal engagement or

disengagement during daily tasks. Engagement occurred when one was cognitively vigilantand/or emotionally connected to others. Disengaged employees uncoupled themselves from

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roles and withdrew cognitively and emotionally. They displayed incomplete role

performances and were effortless, automatic or robotic (Khan, 1990).

McCashland (1999) defined EE as commitment or engagement - an emotional outcome to

the employee resulting from the critical components of the workplace. Miles described it as

intensively involving all employees in high-engagement cascades that create understanding,

dialogue, feedback and accountability, empower people to creatively align their subunits,

teams and individual jobs with the major transformation of the whole enterprise (Miles,

2001). Harter, Schmidt & Hayes (2002) described it as the individuals involvement and

satisfaction with as well as enthusiasm for work. Later, Harter and Schmidt, together with

Keyes re-defined it as cognitive and emotional antecedents in the workplace (Harter,

Schmidt & Keyes, 2003, p. 205).

Employee engagement is thus the level of commitment and involvement an employee has

towards their organization and its values. An engaged employee is aware of business context,

and works with colleagues to improve performance within the job for the benefit of the

organization. The organization must work to develop and nurture engagement, which requires

a two-way relationship between employer and employee. Thus Employee engagement is a

barometer that determines the association of a person with the organization.

EE has been picked up by various and quite different theoretical frameworks in literature,

notably burnout and time. Some of the research defines 'engagement' as the theoretical

antithesis of burnout (Halbesleben, 2003; Montgomery, Peeters, Schaufeli, Den Ouden,

2003). Others argue that burnout is a simple concept measured on a stress continuum and

does not relate to EE. Burnout has become an important aspect for workers worldwide.

Burnout and its supposed corollary engagement have been found to act as mediators in most

of the relationships between workplace variables (Leiter & Phyllis, 2002). It has been argued

that it is important to identify means for lessening burnout and promoting job engagement

to maintain qualified staff (Laub, 1998).

Halbesleben (2003) examined a number of issues as to the measurement and process of

burnout and engagement. Firstly, Halbesleben provided evidence of the factorial and

construct validity of an alternative measure of burnout that addresses some of the limitations

of the popular Maslach Burnout Inventory. Halbesleben investigated the role of perceptions

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of politics as an antecedent of burnout, as well as assessing the role of motivation as a

mediator in the relationship between burnout and job performance. Some theorists, notably

Goddard, (1999) describe engagement with the organisation and engagement with the task as

associated with time use. Engagement is defined as being physically and /or mentally

present, and supporting the goals of the organization. Disengagement from the organization

denotes not being present, or not focused on the goals of the organization. Engagement with

the task means one is present and focused on the immediate task, issue, or problem relating to

the organization.

Disengagement from task is defined as either not present or not focused on the task, issue

or problem relating to the organization. Goddard discusses the theoretical implications of

complex relationships between time and engagement as the locus of an individuals use of

time along the axes of engagement/disengagement from organization and task (2001).

Engagement is most closely associated with the existing construction of job involvement and

flow. Job involvement is defined as the degree to which the job situation is central to the

person and his or her identity. Researchers maintained that job involvement is a Cognitive or

belief state of Psychological identification. Job involvement is thought to depend on both

need saliency and the potential of a job to satisfy these needs. Thus job involvement results

form a cognitive judgment about the needs satisfying abilities of the job. Jobs in this view are

tied to ones self image. Engagement differs from job in as it is concerned more with how the

individual employees his/her self during the performance of his / her job.

Furthermore engagement entails the active use of emotions. Finally engagement may be

thought of as an antecedent to job involvement in that individuals who experience deep

engagement in their roles should come to identify with their jobs.

When Khan talked about employee engagement he has given important to all three

aspects physically, cognitively and emotionally. Whereas in job satisfaction importance

has been more given to cognitive side. HR practitioners believe that the engagement

challenge has a lot to do with how employee feels about the about work experience and how

he or she is treated in the organization. It has a lot to do with emotions which are

fundamentally related to drive bottom line success in a company. There will always be people

who never give their best efforts no matter how hard HR and line managers try to engage

them. But for the most part employees want to commit to companies because doing so

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satisfies a powerful and a basic need in connect with and contribute to something

significant.

3.1-ASPECTS OF EMPLOYEE ENGAGEMENT

Three basic aspects of employee engagement according to the global studies are:-

The employees and their own unique psychological make up and experience

The employers and their ability to create the conditions that promote employee

engagement

Interaction between employees at all levels.

Thus it is largely the organizations responsibility to create an environment and culture

conducive to this partnership, and a win-win equation.

Categories of Employee Engagement

Engaged--"Engaged" employees are builders. They want to know the desired

expectations for their role so they can meet and exceed them. They're naturally

curious about their company and their place in it. They perform at consistently high

levels. They want to use their talents and strengths at work every day. They work with

passion and they drive innovation and move their organization forward

Not Engaged---Not-engagedemployees tend to concentrate on tasks rather than the

goals and outcomes they are expected to accomplish. They want to be told what to do

just so they can do it and say they have finished. They focus on accomplishing tasks

vs. achieving an outcome. Employees who are not-engaged tend to feel their

contributions are being overlooked, and their potential is not being tapped. They often

feel this way because they don't have productive relationships with their managers or

with their coworkers.

Actively Disengaged--The "actively disengaged" employees are the "cave dwellers."

They're "Consistently against Virtually Everything.". They sow seeds of negativity at

every opportunity. Every day, actively disengaged workers undermine what their

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engaged coworkers accomplish. As workers increasingly rely on each other to

generate products and services, the problems and tensions that are fostered by actively

disengagedworkers can cause great damage to an organization's functioning.

3.2-FACTORS LEADING TO EMPLOYEE ENGAGEMENT

Studies have shown that there are some critical factors which lead to Employee

engagement. Some of them identified are

Fig:3.1 Employee Engagement Factors

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Career Development- Opportunities for Personal Development

Organizations with high levels of engagement provide employees with opportunities

to develop their abilities, learn new skills, acquire new knowledge and realise their

potential. When companies plan for the career paths of their employees and invest in

them in this way their people invest in them.

Career Development Effective Management of Talent

Career development influences engagement for employees and retaining the most

talented employees and providing opportunities for personal development.

Leadership- Clarity of Company Values

Employees need to feel that the core values for which their companies stand are

unambiguous and clear.

Leadership Respectful Treatment of Employees

Successful organizations show respect for each employees qualities and contribution

regardless of their job level.

Leadership Companys Standards of Ethical Behaviour

A companys ethical standards also lead to engagement of an individual

Empowerment

Employees want to be involved in decisions that affect their work. The leaders of high

engagement workplaces create a trustful and challenging environment, in which

employees are encouraged to dissent from the prevailing orthodoxy and to input and

innovate to move the organization forward.

Image

How much employees are prepared to endorse the products and services which their

company provides its customers depends largely on their perceptions of the quality of

those goods and services. High levels of employee engagement are inextricably linked

with high levels of customer engagement.

Other factors

Equal Opportunities and Fair Treatment

The employee engagement levels would be high if their bosses (superiors) provide equal

opportunities for growth and advancement to all the employees

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Performance appraisal

Fair evaluation of an employees performance is an important criterion for determining

the level of employee engagement. The company which follows an appropriate

performance appraisal technique (which is transparent and not biased) will have high

levels of employee engagement.

Pay and Benefits

The company should have a proper pay system so that the employees are motivated to

work in the organization. In order to boost his engagement levels the employees should

also be provided with certain benefits and compensations.

Health and Safety

Research indicates that the engagement levels are low if the employee does not feel

secure while working. Therefore every organization should adopt appropriate methods

and systems for the health and safety of their employees.

Job Satisfaction

Only a satisfied employee can become an engaged employee. Therefore it is very

essential for an organization to see to it that the job given to the employee matches his

career goals which will make him enjoy his work and he would ultimately be satisfied

with his job.

Communication

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. If the employee is given a say in the decision making and has the right to be

heard by his boss than the engagement levels are likely to be high.

Family Friendliness

A persons family life influences his wok life. When an employee realizes that the

organization is considering his familys benefits also, he will have an emotional

attachment with the organization which leads to engagement

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Co-operation

If the entire organization works together by helping each other i.e. all the employees as

well as the supervisors co-ordinate well than the employees will be engaged.

An organizations productivity is measured not in terms of employee satisfaction but by

employee engagement. Employees are said to be engaged when they show a positive attitude

toward the organization and express a commitment to remain with the organization.

Organizations that believe in increasing employee engagement levels focus on:

1. Culture: It consists of a foundation of leadership, vision, values, effective

communication, a strategic plan, and HR policies that are focused on the employee.

2. Continuous Reinforcement of People-Focused Policies: Continuous reinforcement

exists when senior management provides staff with budgets and resources to

accomplish their work, and empowers them.

3. Meaningful Metrics: They measure the factors that are essential to the organizations

performance. Because so much of the organizations performance is dependent on

people, such metrics will naturally drive the people-focus of the organization and lead

to beneficial change.

4. Organizational Performance: It ultimately leads to high levels of trust, pride,

satisfaction, success, and believe it or not, fun.

Fig 3.2: employee engagement levels focused

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Increasing employee engagement

o Provide variety: Tedious, repetitive tasks can cause burn out and boredom

over time. If the job requires repetitive tasks, look for ways to introduce

variety by rotating duties, areas of responsibility, delivery of service etc.

o Conduct periodic meetings with employees to communicate good news,

challenges and easy-to-understand company financial information. Managers

and supervisors should be comfortable communicating with their staff, and

able to give and receive constructive feedback.

o Indulge in employee deployment if he feels he is not on the right job. Provide

an open environment.

o Communicate openly and clearly about what's expected of employees at every

level - your vision, priorities, success measures, etc.

o Get to know employees' interests, goals, stressors, etc. Show an interest in

their well-being and do what it takes enable them to feel more fulfilled and

better balanced in work and life.

o Celebrate individual, team and organizational successes. Catch employees

doing something right, and say "Thank you."

o Be consistent in your support for engagement initiatives. If you start one and

then drop it, your efforts may backfire. There's a strong connection between

employees' commitment to an initiative and management's commitment to

supporting it.

A successful employee engagement strategy helps create a community at the workplace and

not just a workforce. When employees are effectively and positively engaged with their

organisation, they form an emotional connection with the company. This affects their attitude

towards both their colleagues and the companys clients and improves customer satisfaction

and service levels.

There's more than one way to improve the level of employee engagement in a company. In

fact, there are many different things that companies not only can do, but need to do.

One of the pitfalls of any employee engagement programme is a failure whether real or

perceived - to follow through on the initial that the company is felt by their employees.

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3.3-EMPLOYEE ENGAGEMENT APPROACHES FOR NEW EMPLOYEES

Best practice recommends starting right at the selection or recruitment stage with:

The right person and giving them a realistic job preview

A strong induction and orientation programme

Rigorous training and development, from technical to soft skills to leadership

development programmes.

Regular technical/soft-skill updates.

Certification programmes to drive people towards excellent performance

3.4-EMPLOYEE ENGAGEMENT APPROACHES FOR ALL EMPLOYEES

Beyond initial recruitment and induction, employee engagement activities can be broken into

a number of groups. These include:

Communications activities

Reward schemes

Activities to build the culture of the organizational

Team building activities

Leadership development activities

Communications activities

These help employees find out what is going on within the company outside of their

immediate team. They also help to create an environment of trust and openness within theorganisation where they are able to talk openly. Employees who feel they are listened to are

able to express dissatisfaction and work together to resolve their causes, without it affecting

their performance.

Good examples of communications approaches include:

Communication forums to provide regular feedback to all people, including team

meetings, conferences and away days

In-house magazines

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On-line communications, including discussion boards and blogs by company

personnel including senior management

Monthly updates on corporate goals and directions

Regular employee opinion and satisfaction surveys

Active soliciting of employee feedback, including opinions and pet peeves

Reward schemes

Reward schemes are an important part of a company's overall employee engagement

programme. Studies have long shown that, while money in itself is not a motivating factor,

the absence of financial reward can be a significant demotivator.

Thus the role of reward schemes in boosting employee engagement is:

to remove barriers to satisfaction in the organisation;

to provide a framework for rewarding everyone in the organisation for their

performance;

to give those who are motivated by financial gain an opportunity to achieve this.

Typical approaches include:

Compensation and benefit programmes

Stock ownership and profit sharing

Recognition programmes

Idea collection schemes linked to rewards for idea generation

Long service and good performance awards

Activities to develop the culture of the organisation

Giving employees a feeling of belonging is crucial in creating a thriving organisation thatpeople feel committed to and others want to join.

Common approaches includes:

Clear and humane HR policies

Pro-social corporate objectives and Corporate Social Responsibility

Equal opportunities policies and practices

Initiatives to maintain the quality of worklife and a balance between

personal/professional lives Developing a safe, clean and inspiring work environment

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Demonstrating a commitment to employees well being

Team building activities

Culture-building activities are great for generating a feeling of belonging, but all

organisations are build out of smaller teams who can get on and work together.

Popular approaches include:

Small team recreational activities, such as bowling, skating, trips to the cinema

Social activities, such as family gatherings and barbeques

Community outreach activities such as volunteering and fund-raising.

Leadership development activities

A great organisation needs not just a great leader, but people with leadership skills. This

stimulates good performance, boosts creativity and eases succession planning.

Effective Leadership

Effective Performance Management

Fair evaluation of performance

Empowerment through effective delegation

Coaching and mentoring activities to give honest feedback by supervisors and peers

An open and transparent culture to empower people and develop entrepreneurs

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CHAPTER-4

RESEARCH METHODOLOGY

Research methodology is a systematic method of discovering new facts or verifying old facts,

their sequences their relationships, casual explanation and the natural laws to govern them.

When proper methods are adapted it would lead to number of advantages, like time saving,

accurate results and fine suggestions.

This research is a descriptive research. It is designed to help executives to choose among

various possible alternatives and make a viable decision.

5.1-RESEARCH DESIGN

A research design is an arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the purpose with the economy in the procedure.

The key success of any project depends upon various factors. Out of this methodology or

technique adapted is more vital. It leads to various advantages and also results in accuracy,

fine suggestions.

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5.2-DATA COLLECTION

Secondary data is collected by some other researchers, hence my research is mostly based on

secondary data. This data was collected through various portals and websites.

5.3-SCOPE OF THE STUDY

Employee engagement creates greater motivation within employees for the work they do and

increases their commitment to the organisation. It is about creating an enthusiasm for their

roles, their work and the organisation, and ensuring they are aligned with the values of the

organisation, well informed and well integrated with their colleagues and the fabric or culture

of the organisation.

The research is conducted to understand the employee engagement in service sector.

CHAPTER-5

ANALYSIS

The concept of engagement is a natural evolution of past research on high-

involvement, empowerment, job motivation, organizational commitment, and trust. All of

these research streams focus on the perceptions and attitudes of employees about the work

environment. In some ways, there are variations on the same fundamental issue. What

predicts employees giving their all? Obviously, all organizations want their employees to

be engaged in their work.

Several standardized tools exist for assessing employee engagement and providing

feedback for making changes. These tools tend to have several common goals and

characteristics:

Create a simple and focused index of workplace engagement - Many organizations are

using very short, simple, and easy to use measures that focus on the fundamentals of a

great workplace. Instead of conducting broad culture/climate surveys with 100 or

more questions, organizations are opting for a focused approach that measures

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fundamental qualities of the workplace that likely will be important 10 years from

now (e.g., feedback, trust, cooperation).

Allow for benchmarking - Most organizations want to know how they compare to

other organizations. Using a standard measure of engagement allows organizations to

see how they compare to other companies along a simple set of fundamental work

qualities.

Direct action- Engagement measures tend to be very actionable. This means that the

organization can alter practices or policies to affect employees responses to every

item in the measure.

Show relationship to company performance- Without a link to company performance

or other critical outcomes, measures of engagement have little value. The whole idea

behind engagement is that it leads to enhanced performance. The link to performance

outcomes is a necessary underlying assumption of all engagement measures.

4.1-ENGAGEMENT PREDICTS ORGANIZATIONAL SUCCESS

Many studies have shown that investments in people (i.e., HR-related practices) have

a reliable impact on the performance of organizations. The Bureau of Labor conducted a

comprehensive review of more than 100 studies and found that people practices have

significant relationships to improvements in productivity, satisfaction, and financial

performance. Research has shown that when engagement scores are high, employees are

more satisfied, less likely to leave the organization, and more productive.

The rapidly accelerating use of the term EE management practices as well as in the

psychological and business literature demands clarification of the construct. If EE is a valid

construct it should be included in future research as a construct in its own right. If it is not,

then surely it should not be allowed to dilute well established and explored theoretical

constructs, notably such as commitment and job satisfaction.

This research has potential applications for HRM for role definition, support and flexibility.

For instance, the increased use of outsourcing and virtual work teams have become strategic

processes for many companies. If EE is so important to companies then, what is the role of

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EE in these processes? Indeed, if EE is so valuable to companies in that it is having such a

profound effect on performance and profitability, then it warrants and requires future

research.

Each organization is different and there are many factors that affect bottom-line outcomes;

however, engagement scores can serve as meaningful predictors of long-term success. Some

organizations use engagement scores as lead measures in their HR scorecards. When an

organization can show the relationship between engagement scores and bottom-line

outcomes, everyone pays attention to the engagement index. Establishing this critical link

between people and performance helps HR professionals prove that people-related

interventions are a worthwhile investment.

Elements of Engagement

Some researches conclude that personal impact, focused work, and interpersonal

harmony comprise engagement. Each of these three components has sub-components that

further define the meaning of engagement.

Personal Impact- Employees feel more engaged when they are able to make a unique

contribution, experience empowerment, and have opportunities for personal growth.

Past research concurs that issues such as the ability to impact the work environment

and making meaningful choices in the workplace are critical components of employee

empowerment. Development Dimensions Internationals (DDI) research on retaining

talent found that the perception of meaningful work is one of the most influential

factors determining employees willingness to stay with the organization.

Focused Work -Employees feel more engaged when they have clear direction,

performance accountability, and an efficient work environment. Aside from the

personal drive and motivation to make a contribution, employees need to understandwhere to focus their efforts. Without a clear strategy and direction from senior

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leadership, employees will waste their time on the activities that do not make a

difference for the organizations success. Additionally, even when direction is in

place, employees must receive feedback to ensure that they are on track and being

held accountable for their progress. In particular, employees need to feel that low

performance is not acceptable and that there are consequences for poor performance.

Finally, employees want to work in an environment that is efficient in terms of its

time, resources, and budget. Employees lose faith in the organization when they see

excessive waste. For example, employees become frustrated when they are asked to

operate without the necessary resources or waste time in unnecessary meetings.

Interpersonal Harmony -Employees feel more engaged when they work in a safe and

cooperative environment. By safety, we mean that employee trust one another and

quickly resolve conflicts when they arise. Employees want to be able to rely on each

other and focus their attention on the tasks that really matter. Conflict wastes time and

energy and needs to be dealt with quickly. Some researches also find that trust and

interpersonal harmony is a fundamental underlying principle in the best organizations.

Employees also need to cooperate to get the job done. Partnerships across

departments and within the work group ensure that employees stay informed and get

the support they need to do their jobs.

4.2-EVIDENCE OF ENGAGEMENT

The Employee Engagement Index (EEI) is an important determinant to track down actual

performance of employees and their commitment to the vision of the organization.

A hospital is not just about patients, surgeries, beds, tests and

medicines. True, these do contribute to the overall profit. But, finally,

it is the employees who decide the success or failure of an

organisation. The success quotient of an organisation can be

strengthened if your employees are 'engaged' in its mission and vision.

Hospitals are now waking up to the fact that it is better to have a small

but smart force rather than a huge, disinterested and disillusioned one.

Unproductive staff employees are like weeds, needing to be tweezed out occasionally. This is

where the EEI is of great help.

Engaging Employees

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An index which was initially incorporated by the leather factories, the hospitality sector and

IT companies, the EEI is a parameter for the Human Resource Development (HRD)

department to analyse whether a particular employee in an organisation is completely

'engaged' in his/her job responsibilities and the quantum he is contributing to the overall

productivity of the organisation. As defined by Dr Aninda Chatterjee, Medical

Superintendent, BM Birla Heart Research Centre, Kolkata, "The index is the state of being

committed and attracted to one's organisation." EEI assesses commitment to the mission,

values of the organisation, attraction to the prospects that the job and policies hold, working

towards achieving them, level of enthusiasm and complete loyalty to the organisation.

Says Rupak Barua, Chief Operating Officer, CMRI, Kolkata, "Unless you are in tune with the

vision and mission of the organisation, you can never give your 100 per cent. It might so

happen that a person working for 10 years may never have knowledge of the goals of the

organisation." CMRI, which has also been utilising this index for the past two years, found on

an average of 83 per cent of the employees were 'engaged' in the organisation.

Adds Biju John, General Manager, Human Resources, Manipal Hospital, Bangalore,

"Employee engagement is beyond satisfaction and commitment. It is a state where an

employee is not just only satisfied and determined to contribute to the organisation's results,

but is actually making a difference to the organisation by producing results."

Engaged

Worker

Passion, innovation and connection

with their company drives these

workers.

Not Engaged

Employee

They 'sleepwalk' through their work.

They lack the passion and energy

required.

Actively

Disengaged

Employee

They are not just unhappy, but they

deliberately work out their unhappiness.

They undermine the accomplishments

of the engaged workers.

Fig5.1 Categories of Employees

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EEI Equations

Hospitals which have adopted the concept are experiencing benefits like improved individual

performance, a rise in the organisational productivity and individual initiative. The index is

also used to understand the needs and inclinations of employees and the bonus and weak

points that need to be worked out. This was reflected in a survey conducted by New Delhi's

Max Healthcare, last year. "We realised that HRD policies were not clear to the employees,

the hard work of workers was not recognised, appraisals were not transparent, strategies

needed modification and the environment was not competitive," reveals Rajesh Varma, Head,

Human Resources, Max Healthcare.

The index aids the HRD in analytically evaluating individual performance. The underlyingprinciple is that hard work, loyalty and enthusiasm should be aptly rewarded and idlers

should be shown the door. The index also makes business sense in an era where profits,

turnarounds and figures do matter for the overall growth of the hospital. The chaffing out of

'unwanted employees' in the long run also becomes easy for any HR department.

In fact, many organisations follow the norm of inducing every year five per cent of fresh

talent into the workforce while five per cent of the unproductive workers are shown the door.

This not only keeps the balance but also avoids any wastage of resources.

However, to improve individual performance, any organisation's management must

understand employee feelings, behaviours and attitudes. "Organisational change cannot be

achieved without a set of challenged, empowered, excited and rewarded teams functioning in

cohesion directed towards a common goal," avers John. Listening objectively helps

understand the why's and how's of employee attitudes and behaviours. Understanding

employees is a powerful force for organisational change and that is when the EEI helps.

Since productivity is directly proportional to the profit of an organisation, this index is an apt

tool to keep workers on their toes and make them work towards the ultimate goal. "In an age

where hospitals are going in for quality accreditations, only motivated employees can help

the hospital achieve them," Varma adds.

EEI at Work

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At most hospitals, questionnaires regarding EEI are circulated to the senior, middle and the

junior level. However, hospitals like CMRI are keen on spreading this exercise to lower

levels too. "We initially did not include the lower levels in EEI, but the next six months will

see this happening," says Barua.

In another case, Bangalore-based Manipal Hospitals had recently conducted an EEI survey

which identified the needs of their employees. "We have recently conducted the survey to

understand our employees and their drives. The survey has provided us an insight into the

mindset of our people in a very objective manner and helped us identify areas which need

focus so as to improve overall engagement levels. This effort has helped us to prioritise our

focus areas and actions. Post-survey, people felt valuable as their opinions were sought,"

quips John.

CMRI conducts this survey once or twice a year. "We talk to the employees then give them a

questionnaire to fill with 45 questions and accordingly calculate the engagement of the

employee," says Barua.

Engaged Employee

Speaks positively

about the

organisation.

Looks at long-term

career perspective.

Tries to perform out

of his normal routine.

Unengaged Employee

Speaks negative

about the

organisation.

Looks at short-term

career perspective.

Tries to shorten his

normal routine.

Fig-5.2 Survey Feedback

Lasting Engagement

There are myriad ways to identify an engaged worker. Steve Crabtree in 'The Gallup

Management Journal' noted that there are three types of employees, namely engaged, not

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engaged and actively disengaged (see box). He cites that engaged workers work with a

passion, drive innovation and feel a profound connection with their company.

Says Rachna Kamra, Director, Capability Development (Head of HR), Fortis Healthcare,

New Delhi, "An engaged employee is least likely to leave an organisation, irrespective of any

job opportunities that come in their way. This is because they enjoy and like being amidst the

people that they are working with. This makes them proactive." It is this basic trait through

which the EEI distinguishes an enthusiastic employee from a disillusioned and disgruntled

worker.

Says Varma, "It all boils down to the attitude of the workerwhether he can go that extra

mile apart from the work assigned for his job profile for the growth of his organisation."

A committed or an engaged employee, whether the CEO at the apex or the junior-most

employee at the bottom of the pyramid, will always be in sync with the primary goals and

vision of the organisation. He thinks and works long-term, with the welfare and the long-term

returns of the organisation in mind. However, at the end of the day, the onus is not just on the

workers but organisations also should seek out ways and means to churn out the much-

required loyalty, energy and enthusiasm of their workers.

Agrees John, "At Manipal, we strongly believe in the power of people in achieving positive

organisational results. Our philosophy is to empower people to bring about organisational

change via proactive measures. We are constantly making efforts to rediscover our inner

strengths and create a need for continuously improving our operations and quality of

services." Action plans at Manipal are accordingly strategised with a focus on those key

engagement drivers which have the largest potential to improve employee engagement.

Max Healthcare has introduced an applause system. The idea is to encourage employees both

at the senior and junior levels if they have done a commendable job for the organisation.

Fortis Healthcare also conducts such surveys regularly internally to track down gaps and

gulfs.

Multi-tier

EEI was in practice in the hospitality sector for decades, at various levels. "In the hotels, there

is the basic level which includes evaluating the engagement index in terms of hygiene and

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salary, the second level includes evaluating the employee vis--vis his job and his

development needs and the advanced stage includes evaluating whether he is actually

contributing to the long-term growth of the organisation," says Rachna Kamra, Director,

Capability Development (Head of HR), Fortis Healthcare, New Delhi. It is all about marrying

individual needs with the needs of the organization

Healthcare, Kamra opines, has now reached the second level of the employee engagement

index

However, industry pundits are undecided whether the index will really work in a service-

oriented industry. Wastage of human resources is not directly reflected in the balance sheet

and hence inducing this index into the system may not be a priority for many managers. "In afactory or in a manufacturing industry, this index helps due to the various levels of

productivity, a worker's performance can be assessed systematically," says an industry expert.

As with any new management concept, there is a wave of apprehension.

The good news, however, is that most hospitals in India are contemplating utilising this

index. "With increased focus on professional management and performance focus, this

industry will realise that EEI will be the first step in its drive to improve organisational

performance," concludes John.

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CHAPTER-6

FINDINGS

The employees should be given the necessary tools, time and training to do their job

well - or they will move to an employer who provides them.

The employee should have a person to talk to at regular intervals. Listening and

solving employee complaints and problems, will help manage employees manage

stress. Fairness and impartial treatment by seniors will help employees realize the

respect and dignity of their job.

The employee should be provided with a stress free work environment. Employees

when enjoy their work they get more motivated and dedicated towards the job

assigned to them.

At the workplace the employee should always feel valued by their employer, it further

leads to high motivation and morale. Recognizing their strengths and helping them to

improve those they lack will lead to high productivity

Employees should be rewarded, recognised and appreciated. Giving them periodical

raise in salary or position helps to retain staff.

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Work-life balance initiatives are important. Innovative and practical employee

policies pertaining to flexible working hours and schemes, granting compassionate

and urgency leave, providing healthcare for self, family and dependants, etc. are

important for the employees. These policies would have a positive impact on

retaining skilled employees, as well as on attracting high-caliber recruits.

Designing clear career path for employees with many challenges and new frontiers of

learning, at the same time the employer should boost them with morale and

confidence.

The employees should synchronize and associate with the Organizational goals,having clear understanding both from the perspective of Senior Leader and Leader of

specific department or unit.

Expecting from the employees and their current standing, providing them with

appropriate feedback and facilitating the procedures will help employees to attain

their goals and objectives.

The employee should be part of the environment that fosters Trust & Collaboration,

being cared by working team members is the root cause to create effective

engagement.

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CHAPTER-7

RECOMMENDATION

The existing literature on organizational culture indicates that although managers do not

directly affect an organizations culture, they can influence it through human-resource

procedures that affect employee satisfaction and engagement.

The organizations shouldidentify eight drivers of satisfaction and engagement. The key

drivers impacting employeesatisfaction include an employees intention to remain in the

organization, the skill variety employees are able to exhibit in their job, the level of customer-

service orientation achieved, and the degree of coordination between units of the

organization.

The key drivers of employee engagementinclude reduced role conflict, proper training,

personal autonomy, and the effective utilization of expert, referent, and exchange power by

managers.

Employees intention to remain in the organization

The more likely employees are to indicate their intention to stay, the more likely they are to

be satisfied with the organization and their status as an employee.

Skill variety employees are able to exhibit in their job

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The degree to which employees feel their job tasks require a wide range of personal skills and

competencies influences the satisfaction of individual employees. Employees tend to feel

more satisfied if given the opportunity to stretch their wings a bit.

Level of customer-service orientation achieved

Employees are more satisfied when they believe they are responsible for identifying and

satisfying the needs of customers, and when they believe that the organization has the best

interests of its customers in mind. It would appear that when employees are more satisfied,

they have an inherent focus on making sure the customer is too.

Degree of coordination between units of the organization

The extent to which employees across organizational units cooperate to articulate inter-unit

activities and minimize disruptions, delays, and interference appears as an indicator of

satisfaction. Employees are more satisfied with the organization and their role within it when

they feel that the organization coordinates activities well between subunits, that is, they feel

more satisfied being a part of a well-structured and coordinated organization.

Reduced role conflict

The extent to which members receive inconsistent expectations from the organization and are

expected to do things that conflict with what they believe to be correct is identified as a factor

negatively impacting engagement. The organization must provide clear and consistent

information to employees and must take into consideration the ramifications of that

information. Employees are unlikely to be motivated to blindly follow instructions merelybecause they are given. They may follow such instructions or bow to expectations, but if they

are counter to what the employee feels to be appropriate, engagement will not occur.

Proper training

The extent to which employees, both new and existing, are provided with the type of

orientation and training that promotes their personal development as well as their

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contributions to the organization. This is not just training for the sake of training, but rather

the development of skills that improve the contribution of each individual employee.

Personal autonomy

Autonomy is defined as the degree to which the job provides freedom and discretion to the

employee with respect to scheduling and work procedures. The employee is not only given

freedom and independence in their work, but is provided with the resources, information, and

training to execute their role in the organization optimally.

Effective utilization of expert, referent, and exchange power by managers

Effective utilization of power by managers can be described as the extent to which employees

are influenced by their supervisors technical expertise or managerial competence (that is,

expert power), the respect that they have for their supervisors (that is, referent power), or

their supervisors willingness to be influenced by them (that is, exchange power).

All of these factors are related to feelings on the part of the employee regarding personal

value, respect, and freedom.

Thus, engagement is largely driven by the employees feeling that the organization values

his or her contribution, and that the organization will do its best to remove barriers from

getting the job done.

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CHAPTER-8

CONCLUSION

Achieving an engaged workforce may take some time, but managers do have many tools to

help them get there. Employees are more satisfied when they believe they are responsible for

identifying and satisfying the needs of the customers, and when they believe the organization

has the best interests of its customers in mind. This ties in very closely with the finding from

the earlier study that employee satisfaction is directly related to customer satisfaction. Once

employee satisfaction is achieved, managers will find comfort knowing employee

engagement is close at hand. Both satisfaction and engagement have direct effects on

customer behavior and, hence, both indirectly influence an organizations financial

performance.

The Engaged Workforce identified the key drivers of employee satisfaction: intention to stay,inter-unit coordination, skill variety and customer-service orientation. The key drivers of

employee engagement are reduced role conflict, training, autonomy, and personal power.

Armed with this knowledge, each organization must identify the most relevant and task-

oriented tools to specifically address role conflict, training, and more. Managers can now

move one step closer to closing the gap between employee engagement and financial success.

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Employees are more satisfied when they believe they are responsible for identifying and

satisfying the needs of the customers, and when they believe the organization has the best

interests of its customers in mind.

Employee Engagement is the buzz word term for employee

communication. It is a positive attitude held by the employees towards

the organization and its values. It is rapidly gaining popularity, use and

importance in the workplace and impacts organizations in many ways.

Employee engagement emphasizes the importance of employee

communication on the success of a business. An organization should thus

recognize employees, more than any other variable, as powerful

contributors to a company's competitive position. Therefore

employee engagement should be a continuous process of learning,

improvement, measurement and action.

Hence to conclude- raising and maintaining employee engagement

(Gretcher Hoover, 2005) lies in the hands of an organization and requires

a perfect blend of time, effort, commitment and investment to craft a

successful endeavor.

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CHAPTER- 9

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Gretcher Hoover Maintaining employee engagement whencommunicating difficultissues Communication World, Nov / Dec 2005.

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