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 and
demonstrates 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 working

environment, 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 organization’s 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 it’s 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. MANAGER’S 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 company’s clients, and thereby improves customer satisfaction and
service levels.
e) It builds passion, commitment and alignment with the organization’s 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 employee’s 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 pulse—the 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 customer’s satisfaction.
Satisfaction is largely influenced by the services provided to customers.
Satisfied, loyal and productive employees create value. Employee’s
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
people’s 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 vigilant
and/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 individual’s 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 individual’s 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 one’s 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 organization’s 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-engaged employees 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
disengaged workers 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 employee’s qualities and contribution
regardless of their job level.
 Leadership – Company’s Standards of Ethical Behaviour
A company’s 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 employee’s 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 person’s family life influences his wok life. When an employee realizes that the
organization is considering his family’s 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 organization’s 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 organization’s
performance. Because so much of the organization’s 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 company’s 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 the
organisation 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 that
people 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

25
 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.

26
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

27
 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

28
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 International’s (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 understand
where to focus their efforts. Without a clear strategy and direction from senior

29
 leadership, employees will waste their time on the activities that do not make a
difference for the organization’s 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

30
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 Passion, innovation and connection

Worker with their company drives these
workers.
Not Engaged They 'sleepwalk' through their work.
Employee They lack the passion and energy
required.
Actively They are not just unhappy, but they
Disengaged deliberately work out their unhappiness.
Employee They undermine the accomplishments
of the engaged workers.

Fig5.1 Categories of Employees

31
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 underlying
principle 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

32
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 Unengaged Employee

• Speaks positively • Speaks negative

about the about the

organisation. organisation.

• Looks at long-term • Looks at short-term

career perspective. career perspective.

• Tries to perform out • Tries to shorten his

of his normal routine. 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

33
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 worker—whether 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

34
salary, the second level includes evaluating the employee vis-à-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 a
factory 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.

35
 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.

36
• 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.

37
 CHAPTER-7
RECOMMENDATION

The existing literature on organizational culture indicates that although managers do not
directly affect an organization’s culture, they can influence it through human-resource
procedures that affect employee satisfaction and engagement.

The organizations should identify eight drivers of satisfaction and engagement. The key
drivers impacting employee satisfaction include an employee’s 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 engagement include reduced role conflict, proper training,
personal autonomy, and the effective utilization of expert, referent, and exchange power by
managers.

Employee’s 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

38
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 merely
because 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

39
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 employee’s 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.

40
 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 organization’s 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.

41
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.

42
 CHAPTER-9
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