Employee Engagement

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Employee engagement is often talked about these days, yet few organizations practically define, measure or apply this concept. Consequently, job satisfaction, a major component of engagement, has decreased 23% in the US in the last 20 years and 10% in the last 2 years.* Clearly, many companies are not getting it. Engagement is a relatively new way of thinking about leading people — a sort of magnetic rather than a coerced approach to getting people to want to do whatever is necessary to ensure the continuous high performance and success of the business. As a goal of management, employee engagement is about an individual’s degree of dedication to the organization and its goals with an implied reward of personal growth. The assumption in the business world is that engagement level predicts the positive intensity and quality of effort the organization can expect from an individual within job confines. In this regard, engagement’s value to the business is a predictor of future behavior and effort. Business leaders should care about employee engagement because, when correctly measured, engagement profiles provide management with a statistical method to maximize return on human capital. For example, our studies show that positively engaged employees have higher than average individual productivity and innovation events plus they remain with the company longer than disengaged employees. In addition, the discretionary efforts of the fully engaged are of higher quality and of a more positive intensity than other less-engaged employees: their economic contributions to the business consistently exceed their employment costs. From a quality of work life perspective, positively engaged employees are often energetic and enthusiastic which makes them more productive in group efforts and makes them enjoyable to work with. Our research also shows that fully engaged employees solve problems. The failure to positively engage people in organizations today often stems from poor definition and measurement of employee engagement. Managing engagement cannot be effective without practical, reliable measurement and reliable, concrete definition. Contrary to most published materials, calculated responses to a host of random “benchmarked” opinion questions are not reliable measures of

Transcript of Employee Engagement

Page 1: Employee Engagement

Employee engagement is often talked about these days, yet few organizations practically define, measure or apply this concept. Consequently, job satisfaction, a major component of engagement, has decreased 23% in the US in the last 20 years and 10% in the last 2 years.* Clearly, many companies are not getting it.

Engagement is a relatively new way of thinking about leading people — a sort of magnetic rather than a coerced approach to getting people to want to do whatever is necessary to ensure the continuous high performance and success of the business. As a goal of management, employee engagement is about an individual’s degree of dedication to the organization and its goals with an implied reward of personal growth. The assumption in the business world is that engagement level predicts the positive intensity and quality of effort the organization can expect from an individual within job confines. In this regard, engagement’s value to the business is a predictor of future behavior and effort.

Business leaders should care about employee engagement because, when correctly measured, engagement profiles provide management with a statistical method to maximize return on human capital. For example, our studies show that positively engaged employees have higher than average individual productivity and innovation events plus they remain with the company longer than disengaged employees. In addition, the discretionary efforts of the fully engaged are of higher quality and of a more positive intensity than other less-engaged employees: their economic contributions to the business consistently exceed their employment costs. From a quality of work life perspective, positively engaged employees are often energetic and enthusiastic which makes them more productive in group efforts and makes them enjoyable to work with. Our research also shows that fully engaged employees solve problems.

The failure to positively engage people in organizations today often stems from poor definition and measurement of employee engagement. Managing engagement cannot be effective without practical, reliable measurement and reliable, concrete definition. Contrary to most published materials, calculated responses to a host of random “benchmarked” opinion questions are not reliable measures of employee engagement. In fact, this false assumption lies at the heart of leaderships’ failure to engage. Meaningful engagement measurement is derived from tried and true attitude classification psychometrics, and collected via survey responses to a validated, complete inventory of questions about employee feelings and experiences towards verified engagement “drivers”. The fact is, few employee engagement surveys reliably measure the 15 proven drivers of engagement.

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OBJECTIVES OF THE PROJECT• Employee engagement research claims that it…

– Predicts organizational and financial success through task and job motivation and organizational commitment.

– Increases with positive measures:• Workload (reasonably)• Control• Rewards and recognitions• Community and social support• Perceived fairness • Values fit

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METHODOLOGY The objective of this project is to study the amount of work that is delegated to the employees

and organizational process to delegate the work and for this a questionnaire is designed. Source of data: The data used in this project is Primary data which is collected by the means of a

questionnaire on Analysis of Employee Engagement in MTI & RDCIS, SAIL. Secondary data is collected for the information related to SAIL and MTI. Sampling Design: In this process the sample is collected with a definite purpose in view. Here the

sample has been selected from the executive employees of MTI & RDCIS because the purpose of the study is to find the engagement effectiveness of the managers.

Simple Random Sampling: In this method each and every element in the population, here the sample (all the managerial posts at MTI & RDCIS along the hierarchy), has a known and equal chance of selection.

Sample size: The sample size used for purpose of study is 65 executive employees of RDCIS & MTI. The sample has been selected from the list of executive employees working in MTI & RDCIS. The reason for this kind of selection was to do a study based on the posts of the employees.

Questionnaire design: The questions are constructed on a four point likert scale. The questionnaire basically has three parts: the first part measures the amount of delegation that has been given to each employee, the second part consists of the organizational process for the delegation of work and the third part looks into the sense of belongingness of each employee towards the organization.

Analysis: After covering the required number of data various statistical tools are used. Factor analysis is done on each part of the questionnaire separately and then analyzed. The graphs are also constructed on the basis of the questionnaire and then analyzed.

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1. Type of Data : Primary

2. Population: Executive employees of Management

Training Institute & Research and Development

Centre for Iron and Steel

3. Sampling technique used: Simple random sampling

4. Method of data collection: Through Engagement

Assessment Questionnaire

5. Total Sample Size: 65

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Methods used for analysis:

Following methods have been used for analysis

purpose:

• Graphical Method

• Factor Analysis• MS Excel was used for the graphical analysis

whereas SPSS was used for factor analysis

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DATA ANALYSIS AND INTERPRETATIONAN ANALYSIS OF EMPLOYEE ENGAGEMENT:

An analysis is done by conducting survey of 62 corporate professional

of SAIL and by analyzing 20 Case Study at MTI and found that many respondents credit offering employee engagement programs with the following benefits:

1. More than 50% report improvements in employee retention and customer

satisfaction Improvements in Employee Retention and

Customer Satisfaction

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20

40

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EMPLOYEES

Improvements inEmployeeRetention andCustomer

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2. 33% report higher productivity

3. 28% report improvements in employee advocacy

Higher productivity

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EMPLOYEES

Higher productivity

Employee Advocacy

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EMPLOYEES

EmployeeAdvocacy

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4. 27% improved status as a "great place to work“

5. 27% report increased profitability

Great place to Work

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1015202530

EMPLOYEES

Great place toWork

Increased Profitability

05

1015202530

EMPLOYEES

IncreasedProfitability

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6. 25% report improved absenteeism

7. 74% began focusing on employee engagement between 2000 and 2004 and report performance improvements each year

Improved Absenteeism

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EMPLOYEES

ImprovedAbsenteeism

Focous on Employee Engagement and Report Performance Improvement each year

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EMPLOYEES

Focous onEmployeeEngagement andReport

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8. 36% have a dedicated employee engagement program

9. 64% apply the philosophy to employee engagement to their people practices

Dedicated Employee Engagement program

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EMPLOYEES

DedicatedEmployeeEngagementprogram

Philosophy to employee engagement

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EMPLOYEES

Philosophy toemployeeengagement

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ANALYSIS

INTERPRETATION: In the above bar graph we can clearly see that 70% of the total respondents Strongly

agreed that they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

FINDINGS: From this we conclude that most of the employees are provided with an adequate

amount of materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments.

010203040506070

MATERIALS ANDEQUIPMENTS

Strongly agree

Agree

Neutral

Disagree

StronglyDisagree

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INTERPRETATION: In the above bar graph we can clearly see that 80% of the total

respondents Strongly agreed that they receive the information and communication to do the job while 10% agree that they are provided with the above and 5% is in the neutral side whereas 2% is in the Disagree side and 3% are in the Strongly Disagree side

FINDINGS: From this we conclude that most of the employees are receive the

information and communication to do the job and the higher authority should look after the employees who all are not provided with adequate amount of facilities.

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20

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60

80

Receive the informationand communication to

do the job

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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INTERPRETATION: In the above bar graph we can clearly see that 10% of the total

respondents are agreed upon recieveing recognition /phrase for doing good work equipments to while 70% agree that they are provided with the above and 10% is in the neutral side whereas 5% is in the Disagree side and 5% are in the Strongly Disagree side

FINDINGS: From this we conclude that most of the employees are recieveing

recognition /phrase for doing good work equipments communication to do the job and the higher authority should look after the employees who all are not provided with adequate amount of facilities.

010203040506070

Receive recognition/phrase for doing good

work

Strongly Agree

Agree

Neutral

Disagree

Disagree

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INTERPRETATION: In the above bar graph we can clearly see that 70% of the total respondents

Strongly agreed that they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

FINDINGS:From this we conclude that most of the employees are provided with an

adequate amount of materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments.

0

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Benefits offered are fairand reasonable

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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INTERPRETATION: In the above bar graph we can clearly see that 70% of the total respondents Strongly agreed that

they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

FINDINGS:From this we conclude that most of the employees are provided with an adequate amount of

materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments.

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People over here arepleasant and Co-

operative

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

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INTERPRETATION:

In the above bar graph we can clearly see that 70% of the total respondents Strongly agreed that they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

FINDINGS:

From this we conclude that most of the employees are provided with an adequate amount of materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments.

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My opinions and ideasseems to matter

Strongly Agree

Agree

Neutral

Disagree

StronglyDisagree

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INTERPRETATION: In the above bar graph we can clearly see that 70% of the total

respondents Strongly agreed that they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

FINDINGS:From this we conclude that most of the employees are provided with an

adequate amount of materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments

010203040506070

My supervisor helps meknow what it is expected

of me

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

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INTERPRETATION: This chart shows that 89% of the respondents agreed that eager enough

to take the responsibility while 6% believed that they have very high eagerness to take responsibility whereas 4% says that they are eager only to some extent while 1% says that they have very little eagerness.

FINDINGS:From this we can conclude that, the lower level (E1 E2 E3) in RDCIS finds

themselves that they are eager enough to take the responsibilities when given to them to do the tasks effectively and efficiently

01020304050607080

Even I have opportunity to geta similar jobs with other

organisation I would stay withmy present company

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

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INTERPRETATION: In the above bar graph we can clearly see that 70% of the total

respondents Strongly agreed that they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

FINDINGS:From this we conclude that most of the employees are provided with

an adequate amount of materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments.

010203040506070

In last year I haveoppertunities to learn and

grow

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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• INTERPRETATION: • In the above bar graph we can clearly see that 70% of the total

respondents Strongly agreed that they are provided materials and equipments to do the job efficiently while 15% agree that they are provided with the above and 10% is in the neutral side whereas 3% is in the Disagree side and 2% are in the Strongly Disagree side

• FINDINGS:• From this we conclude that most of the employees are provided with an

adequate amount of materials and equipments and the higher authority should look after the employees who all are not provided with adequate amount of materials and equipments.

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40

60

80

I would recommend myorganisation as a good

place

Strongly Agree

Agree

Neutral

Disagree

StronglyDisagree

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FINDINGS

The findings suggest that it is very important to have coordination, resources availability and supervision for the employees in any organization in order to carry out the responsibilities effectively. In case of organizational process it is development of the subordinates, motivating them and providing them proper support (by their senior) which plays an important role. Thus, it is found that about 30% of employees are actively Engaged, 54% of employees are not engaged and about 16% employees are Actively disengaged

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SUGESSIONS

• Start with engaged people; Hire well– First look inside– Be clear and accurate– Integrity first

• We can teach skills easier than Integrity

• Commit to Coaching and Feedback– Performance Management– Hold leaders accountable– Clear expectations

• Commit to their Careers, not just your own– Overall career development– Internal pathways– Succession planning– Training

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CONCLUSIONThus I can conclude that the present project is to study about enhancing employee engagement at Steel Authority of

India Limited.The organization so called Steel Authority of India Limited is one of the premier organization not only in our country India but it shares its contribution widely in the whole world and to run all thease in a lucid manner there should be 100 percent of commitment of the employees toward the organization so employee engagement proves a great importance for the business performance. In SAIL the engagement rate is much more higher than any other organization , and for the immense betterment of the organization the engagement takes place in the below manner

1. Employee engagement starts on day one: Effective recruitment and orientation programs are the first building blocks to be laid on the first day of the new employee. Managers should be careful in pooling out the potential talent of the new employee through effective recruitment. The manager has to ensure role-talent fit when placing an employee in a certain position. Once hiring decision is made the new employee should be given both general orientation which is related to the company mission, vision, values, policies and procedures and job-specific orientation such as his/her job duties, and responsibilities, goals and current priorities of the department to which the employee belongs in order to enable him/her to develop realistic job expectations and reduce role conflict that might arise in the future. For high employee engagement to happen, “leadership through example” is of a paramount importance.

2. Employee engagement starts from the top: Employee engagement requires commitment from leadership through

establishing clear mission, vision and values. Unless the people at the top believe in it, own it, pass it down to managers and employees, and enhance their leadership, employee engagement will never be more than just a “corporate fad” or “another HR thing”. Employee engagement does not need lip-service rather dedicated heart and action-oriented service from top management.

3. Enhance employee engagement through communication: Managers should promote two-way communication.

Employees are not sets of pots to which you pour out your ideas without giving them a chance to have a say on issues that matter to their job and life. Clear and consistent communication of what is expected of them paves the way for engaged workforce. Involve your people and always show respect their input. Share power with your employees through participative decision making so that they would feel sense of belongingness thereby increasing their engagement in realizing it.

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4. Give satisfactory opportunities for development and advancement: Encourage independent thinking so that employees will have a chance to make their own freedom of choosing their own best way of doing their job so long as they are producing the expected result. Manage through results rather than trying to manage all the processes by which that result is achieved.

5. Ensure that employees have every thing they need to do their jobs: Managers are expected to make sure that employees

have all the resources such as physical or material, financial and information resources in order to effectively do their job. 6. Give employees appropriate training: Help employees update themselves increasing their knowledge and skills through giving

appropriate trainings. Generally it is understood that when employees get to know more about their job, their confidence increases there by being able to work without much supervision from their immediate managers which in turn builds their self-efficacy and commitment.

7. Have strong feedback system: Companies should develop a performance management system which holds managers and

employees accountable for the level of engagement they have shown. Conducting regular survey of employee engagement level helps make out factors that make employees engaged. After finalizing the survey, it is advisable to determine all the factors that driving engagement in the organization, then narrow down the list of factors to focus on two or three areas. It is important that organizations begin with a concentration on the factors that will make the most difference to the employees and put energy around improving these areas as it may be difficult to address all factors at once. Managers should be behind such survey results and develop action-oriented plans that are specific, measurable, and accountable and time- bound.

8. Incentives have a part to play: Managers should work out both financial and non-financial benefits for employees who show

more engagement in their jobs. Several management theories have indicated that when employees get more pay, recognition and praise, they tend to exert more effort into their job. There should be a clear link between performance and incentives given to the employees.

9. Build a distinctive corporate culture: Companies should promote a strong work culture in which the goals and values of

managers are aligned across all work sections. Companies that build a culture of mutual respect by keeping success stories alive will not only keep their existing employees engaged but also they baptize the new incoming employees with this contagious spirit of work culture.

10. Focus on top-performing employees: A study conducted by Watson Wyatt Worldwide in 2004/05 on HR practices of 50 large

USA firms shows that high-performing organizations are focusing on engaging their top-performing employees. According to the finding of the same research, what high-performing firms are doing is what top-performing employees are asking for and this reduces the turnover of high-performing employees and as a result leads to top business performance