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Importance of employee engagement on organization performance

Question:

Research proposal on the topic: Impact Of Employee Engagement On Organization Performance. 

During the recessionary economic climate, there was a shift from the focus of investing for the growth of the company towards various cost reduction methods. This significant shift made the higher authorities of the company to think of various cost reduction methods. This had lead to the situation when the involvement of the employees of the company was recognized (Andries & Czarnitzki, 2014). The result was positive and there on, the same phenomenon has been used by many organizations with an intention to improve their organizational performance.

Various researches have been done to understand the impact of employee engagement in the working of an organization. In one of the ‘Harvard Business Analytic Service report’ an in depth interview with best practiced leaders has confirmed the importance of employee engagement in the business of the organization (Boxall & Macky, 2014). These researches have proved that with the involvement of employees in an organization, the challenges that an organization face becomes easier to handle.

The aim of the research is to evaluate the impact of employee engagement in improving the performance of an organization.

The aim of the study can be stated as under:

  • To understand the importance of employee engagement on the performance of an organization.
  • To evaluate the various ways of employee engagement in the business journey of an organization.
  • To find the impact of employee engagement in the performance of an organization.
  • To recommend few ways to increase employee engagement in an organization.

Q1. What is the importance of employee engagement on the performance of an organization?

Q2. What are the various ways of engaging employees in the working of an organization?

Q3. What is the impact of employee engagement in an organization?

Q3. What are the possible recommendations for increasing employee engagement in an organization?

Deriving at a particular decision becomes tough for the management team at many instances. It can be solved with the right intervention of the employees in the decision making process of the company (Cappetta et al., 20124).

Companies have been reviewing various processes for the sake of improving the performance of the organization.

A highly engaged work force in an organization not only improves the performance of the organization but it also help to increase productivity and reduce human capital.

 The continuous increase in the competition due to globalization of the market has made it a necessity to focus on the performance of the organization in order to compete and survive in the market.

This research will shed light on the importance of engaging employees in the organizational activities and its impact on the performance of the organization.

H0: Employee engagement helps to improve the performance of an organization.

H1: Employee engagement does not help to improve the performance of an organization

The proposed structure of the study might be as follow:

Figure: Proposed dissertation structure 

Introduction:

The literature review section of the research study is done to understand the concepts related to the topic. For the same purpose, various theories and researches made on the same topic will be analyzed. Secondary sources such as books, journal, thesis and other online materials will be used.

In simple language, ‘employee engagement is the property of a relationship between an organization and its employees’. An employee who is completely engaged in the regular activities of the organization and who is enthusiastic and positive in their action towards the organization can be called as an ‘engaged employee’. The phenomenon has become an important part in the job and responsibilities of the HR of a company.  It is a stronger predictor of improving the performance of the company. However, it has been stated by Goetsch and Davis, (2014), that the result of better performance of an organization is a two way involvement, both from the side of the employee and the team of management as well. It has been pointed out by Green (2012), which if an employee is emotionally attached to the company, then the company can expect better results from the employee.

Ways of engaging employees in the working of an organization

The actual output or result of an organization measured against the intended output is known as organizational performance. It has been pointed out by Keller and Warner (2012), that there are few ways by which an organization’s performance can be measured. These are:

  • Financial performance: When it is viewed that the profit margin or the business turnover of the company has increased, it shows a clear indication that the company has gained certain financial profits from the previous time. For example, the concept of employee involvement in the operation of the organization has been recognized by IBM since a long time. In the year 2014, the company showed its improvement by the means of employee involvement. After the long recession period, the company saw certain improvements in its financial report in the mentioned year (Kitching et al., 2013).
  • Product market performance: This is another scale of measuring the performance of a company in the market compared to its existing competitors. There is no doubt that the market is full of options and substitutions. People are opened to various choices to meet their demands. Thus, every company has to come up with some unique ideas to compete with the other existing products. Only when the company is able to come up with an innovative and creative idea in its product, the product is distinguished from others and the same can be easily recognized by the consumers. In this matter, it can be mentioned that innovative ideas can appear to any person at any instance of time. Thus, when there is an involvement of the employees in designing or implementing any kind of change in the product, it is expected that the result would be something prosperous. The same can be easily witnessed in the case of Apple Company. The company takes full co ordination of the employees in designing their product. The result of this method can not be neglected. The market share and the market demand of Apple iPhone are flawless.
  • Share holder return: Shareholders means a lot to a company. They are the pillars of the financial condition of any company. Thus, it is evident that without their support, there is much less scope for the company to prosper in this competitive market. It has been pointed out by Liu and Yermack (2012), that employee involve dement in the business of a company has resulted to develop better relationship with the share holders of the comp0any. The same kind of scenario is observed in the food chain company McDonald. The company really appreciates the involvement of the employees in making major decisions for the company. Kit can be easily narrated that the relationship with the shareholders of the company has been possible to be good just due to the involvement of the employees in taking major decisions.
  • Many organizations even use the balanced scorecard methodology: It is one of the strategies that a company undertakes for gaining maximum advantage from the performance of the employees of the company (Marchington & Suter, 2013). It is in fact, one of the tools to measure the performance of the employees. By this means only, it can be assumed that the involvement of the employees is bound to affect the performance of the company as a whole.

From the above discussion, kit is evident that involvement of employees has brought positive and good results in the performance of the company. Thus, it is expected that many other companies will also take such decision as a part of their company’s strategy. 

According to Munisi and Randoy, (2013), one of the key strategies to improve the performance of an organization is to engage the employees in the regular activities of the organization. In fact, employee engagement has become the top priority for the senior executives in some well established organizations. As pointed out by Sharif and Scandura, (2014), a highly performing and engaged workforce is indeed required for the survival and growth of the company. This is important because the present scenario of the market is highly competitive due to globalization effect in the business.

By the means of employee engagement, a better work force is created. This increases the productivity of the company and significantly reduces the cost of productivity. The managers and the higher authorities are mainly responsible for taking care of any kind of issue or problems that the company faces (Taylor, Bogdan & DeVault, 2015). At these critical times, help from the employees of the company is inevitable. When the same is received fr4om them, it automatically improve the condition of the company and enhances the performance of the company as a whole.

Total quality management is a new concept that has been derived as a part of the employee involvement in the performance of the organization. Many small and big companies are involving these managing criteria in their business strategies. The result that they have been received is always positive and prospering. In fact, it has been recognized by many authors and research experts and have concluded to the fact that involvement of employees is indeed required to bring better result in the performance of the company.

Primarily, it is expected that the employees who are involved in the organization are recognized. Identifying the achievements of the organization is also important and taking active part to compel the employees to take active participation in maximizing the engagement of the employees.

Three main ways has been suggested by Munisi and Randoy, (2013), to engage the employees in an organization for enhancing the performance of the organization. These are:

  • Effective communication among the employees: It has been suggested by Wolfe and Sauaia, (2014), that in order to keep a balance in the working procedure of the company, kit is indeed important to keep an effective communication among the members of the company, that includes both employees and the employers. Developing clarity and engagement issues will enhance the performance of the employees in the organization. By the means of communicating with each other of the issues, different suggestions can arrive and that would proved to be one of the important fact6ors for solving the issue of the company.
  • Achieving a high level engagement of employees: It has been pointed out by Sharif et al., (2014), that the employees are aware of the fall and rise of the company in which they are working. Thus, if the employees keep involved kin the matter of the company’s operation, better solutions and proper guidance can be expected. It is the employee who knows the condition of both the company’s and of the team of management that the company has. Thus, based on the experience and capability of the employees, achieving a better result can be easily expected.
  • Strong executive leadership: When a group or team of members works under the guidance of an efficient and capable leader, the members become confident in their performing activity. Thus, a better result from the members can be expected if the team is provided with an efficient and capable leader as their guidance. Selecting a person as the leader of a team can bring out the best from the team members.

The Role of the HR and the manager is very important in shaping the employee engagement in the organization. In fact, it can be said that the HR of a company should focus on using various tools that would help to engage the employee in the operation of the company. Unlocking the potential of the employees connecting them with the operation of the company, is one way by which employee engagement can be assured. It is expected that the HR will be responsible for re-engaging the employees in the process on organization improvement.

Impact of employee engagement in an organization

As pointed out by Taylor, (2014), that involving the employees in the decision making process of the organization might prove to a harmful effect for the company as well. Reading Neuman, (2012), it has been found that every company has a management and board of members’ team who are responsible for making decisions for the organization. It is for their capability, qualification and experience that they have been given that post and not the employees. Thus, involving employees in the decision making process of the company might proved to be negative for the company because the employees are not considered to be capable enough to take part in such important decision. 

The literature review section has highlighted the various concepts related to the topic of the research. Both the variables of the research have been defined. The importance and the impact of the employee involvement in the performance of a company have been evaluated. Apart from that the negative impact of the same has also been discussed.

Introduction:

Methodology is the most important part of doing a research. Selecting a proper method for the sake of carrying out the research is important for deriving at a particular conclusion. If a proper methodology is not selected, then there are very less chance of getting a fruitful result of the research study. The different stages of methodology will be discussed s under:

The research design that might be used for the sake of carrying the investigation for the research study is descriptive design. By the means of descriptive design, the issues and the problems faced by various organizations in involving the employees in the operation of the company. The other two methods, such as the explanatory or the exploratory research design will not be used because using those methods require a lot of effort to be put in conducting the research. If explanatory method is chosen, then more questions would have raised rather than deriving at a particular conclusion (Panneerselvam, 2014).

It is also assumed that deductive approach is to be taken for the sake of carrying out this research. By deductive technique, the already existing data will be analyzed and a better conclusion will be reached. The inductive approach will be avoided because it will require inducing new theories and then the application of the same in conducting the research. This method is quiet a difficult one and would become really tough for the researcher to conduct the research study.

For the sake of analyzing the data, it is expected that the data and information that will be collected from the primary and the secondary data will be evaluated by the means of segregating the data in the form of table and charts. Some calculating software such as MS Excel might be used for calculating the average or the total of the numeric data that has been collected (Flict, 2015). The numerals that have been derived will be converted to charts and tables that the same can be easily compared with the each other. Thus, by this way the work can be made easier.

Recommendations for increasing employee engagement in an organization

In order to derive information regarding the topic of the study, it is expected that both primary and secondary research will be carried on. For the sake of secondary research, information available from the several books, journals and even articles will be analyzed. The theories and models that are related to the research study will be analyzed critically. Apart from that the books available online will also be used as reference for the study.

For the primary research, both qualitative and quantitative data analysis will be carried on. For qualitative approach, a survey will be conducted among the employees of the selected organization and for the quantitative approach; the managers of the company will be approached for interview. Thus, information collected from these sources will be used for deriving at a particular conclusion. 

In collecting the samples from various sources, it is expected that both probability and non-probability sampling technique will be adopted. At the time of conducting the survey, it is expected that there the employees will be responsive enough to reply on the queries that the researcher would arise. Conducting interview with the managers of the organization falls under probability sampling. For getting better results, the researcher will make a survey paper with some close ended questions. The respondents will be asked to select from the given choices. This will help to analyze the collected response from the respondents in an easier way.

At the time of carrying out the research, it is expected that certain accessibility issues will arise. These issues might arise at the time of taking appointment from the managers of the company. The managers might be busy or it might also happen that the managers will not be interested to meet the researcher. Again, at the time of conducting the secondary research, the books might not be accessible to the researcher. The theories or models might not prove to be good enough to support the arguments made by the researcher.

Ethical issue is very important to consider at the time of carrying out a research study. Without proper ethical consideration, the researcher might have to face great troubles while conducting the research. Some of the ethics that are to be kept in mind at the time of conducting the research are mainly during collecting the data. While conducting any kind of survey, it is expected that none of the respondents would be forced to participate in the survey. Their opinions are to be taken completely on their full co operation. For interviewing the managers of the company, the researcher needs to take appointment from the managers of the company by the means of sending letter or over the telephone.

Activities

1st to 3rd Week

4th to 10th week

11th to 13th  Week

14th to 17th  Week

18th to 21st  Week

22nd  to 23rd  Week

24th  Week

Selection of the topic

ü   

Data collection from secondary sources

ü   

ü   

Creating layout

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Literature review

ü   

ü   

ü   

Analysis and interpretation of  collected data

ü   

ü   

ü   

Findings of the data

ü   

ü   

Conclusion of the study

ü   

Formation of draft

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Submission of final work

ü   

Figure: Gantt Chart 

Reference list:

Andries, P., & Czarnitzki, D. (2014). Small firm innovation performance and employee involvement. Small business economics, 43(1), 21-38.

Boxall, P., & Macky, K. (2014). High-involvement work processes, work intensification and employee well-being. Work, Employment & Society,28(6), 963-984.

Cappetta, R., Maruping, L., Madden, J., & Magni, M. (2015). Employee Self-Service Technology and Performance: the Role of Learning Transfer and Involvement.

Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research project. Sage.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. pearson.

Green, F. (2012). Employee involvement, technology and evolution in job skills: A task-based analysis. Industrial & Labor Relations Review, 65(1), 36-67.

Keller, B., & Werner, F. (2012). New forms of employee involvement at European level—The case of the European Company (SE). British journal of industrial relations, 50(4), 620-643.

Kitching, J., Kašperová, E., & Collis, J. (2013). The contradictory consequences of regulation: The influence of filing abbreviated accounts on UK small company performance. International Small Business Journal

Liu, C., & Yermack, D. (2012). Where are the shareholders’ mansions? CEOs’ home purchases, stock sales, and subsequent company performance. In Corporate Governance (pp. 3-28). Springer Berlin Heidelberg.

Marchington, M., & Suter, J. (2013). Where Informality Really Matters: Patterns of Employee Involvement and Participation (EIP) in a Non‐Union Firm. Industrial Relations: A Journal of Economy and Society, 52(s1), 284-313.

Munisi, G., & Randøy, T. (2013). Corporate governance and company performance across Sub-Saharan African countries. Journal of Economics and Business, 70, 92-110.

Neuman, W. L., & Robson, K. (2012). Basics of social research: Qualitative and quantitative approaches.

Panneerselvam, R. (2014). Research methodology. PHI Learning Pvt. Ltd..

Sharif, M. M., & Scandura, T. A. (2014). Do perceptions of ethical conduct matter during organizational change? Ethical leadership and employee involvement. Journal of Business Ethics, 124(2), 185-196.

Stoetzel, M., Bessant, J., & Pinkwart, A. (2013). Accelerating high involvement: The role of new technologies in enabling employee participation in innovation. International Journal of Innovation Management, 17(06), 1340020.

Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.

Vanichchinchai, A. (2012). The relationship between employee involvement, partnership management and supply performance: Findings from a developing country. International Journal of Productivity and Performance Management, 61(2), 157-172.

Wolfe, J., & Sauaia, A. C. A. (2014). The Tobin q as a company performance indicator. Developments in Business Simulation and Experiential Learning,30.

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