employee engagement the key to improving performance

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Bahria University Islamabad Subject: Organizational Behavior MBA 3 (B) Topic: Employee Engagement: The Key to Improving Performance Submitted To: Sir, Zafarullah Siddqui Submitted By: Suhaib Tariq

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Page 1: Employee Engagement the Key to Improving Performance

Bahria University Islamabad

Subject: Organizational Behavior

MBA 3 (B)

Topic: Employee Engagement: The Key to Improving

Performance

Submitted To:

Sir, Zafarullah Siddqui

Submitted By:

Suhaib Tariq

Page 2: Employee Engagement the Key to Improving Performance

Literature Review:

Employee Engagement: The Key to Improving Performance

Robinson et al. (2004) define employee engagement as “a positive attitude held

by the employee towards the organization and its value. 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.” Many researches have tried to identify factors

leading to employee engagement and developed models to draw implications for

managers. Their diagnosis aims to determine the drivers that will increase

employee engagement level.

According to Penna research report (2007) meaning at work has the potential to

be valuable way of bringing employers and employees closer together to the

benefit of both where employees experience a sense of community, the space to

be themselves and the opportunity to make a contribution, they find meaning.

Employees want to work in the organizations in which they find meaning at

work. Penna (2007) researchers have also come up with a new model they called

“Hierarchy of engagement” which resembles Maslow’s need hierarchy model. In

the bottom line there are basic needs of pay and benefits. Once an employee

satisfied these needs, then the employee looks to development opportunities, the

possibility for promotion and then leadership style will be introduced to the mix

in the model. Finally, when all the above cited lower level aspirations have been

satisfied the employee looks to an alignment of value-meaning, which is

displayed by a true sense of connection, a common purpose and a shared sense of

meaning at work.

Human Resource staff is often responsible for implementing employee

engagement programs, but their ultimate success depends on effective

Page 3: Employee Engagement the Key to Improving Performance

management. Management plays an important role in fostering employee

engagement. Organizations can take the following actions to ensure that

engagement contributes to performance (Herrin, 2008):

Involve managers: Employees become engaged when managers take an interest

in their personal and professional development through everyday

encouragement.

Improve executive management: Implement professional development

programs for executives, emphasizing communication and other skills to

promote employee engagement.

Articulate clear standards: Inform managers of exactly how they are expected

to build employee engagement (goals, targets, measures, and incentives).

Promote the right supervisors: Establish competencies that emphasize

communication and leadership, and avoid promoting only technical performers.

Clearly communicate vision and goals: Link organizational goals with

individual work units in a clear and consistent manner, using newsletters, emails,

and speeches.

Base staffing practices on merit: Set clear expectations, communicate staffing

practices, and treat the unsuccessful applicants with the same respect as the

promoted.

According to Nancy R. Lockwood (2007) there are some barriers to Employee

Engagement which can effect organizations in negative way. Often in the form of

rules, workplace culture and behaviors, barriers to engagement can be damaging

to employees, customers and stakeholders— and ultimately, to the organization’s

financial success. Human Resource can act as a barrier—depending on how

workplace policies and practices are implemented—rather than helping to

motivate employees through innovative and proactive practices.

Page 4: Employee Engagement the Key to Improving Performance

Also, barriers can prevent efficiency, do not promote a positive and engaging

work environment and may damage the ability of an organization to act quickly.

Importantly, barriers can prevent customers from getting what they need. To be

better positioned to address barriers to engagement, organizations must

determine what is working and what is not. The Gallup Organization, for

example, identified 12 indicators that link employee satisfaction with positive

business outcomes and profitability. The initial study considered four key areas:

customer satisfaction/loyalty, profitability, productivity and employee turnover.

In addition, stress levels in the workplace have increased substantially due to the

pressures of competition, technology that promotes the fast-paced 24/7 global

economy and the blurring of boundaries between work and home life. For

example, a 2004 study found that 27% of U.S. employees were speechless by how

much work they had to do and 29% often or very often did not have time to

process or reflect on the work they did. Overworked employees make more

mistakes and tend to have higher levels of stress and physical health problems,

experience clinical depression and neglect caring for themselves. The message

for HR is that stressed employees are likely to be less engaged and less

productive in the workplace.

In another research Pete Sanborn and Rahul Malhotra (2010) explains the

Trends in Global Employee Engagement. Over the past decade, and particularly in

the past three years, employers and employees have faced human capital

challenges and an uncertain economy. The economic downturn that started in

2008 has had a significant impact on companies and the resulting decisions made

by management. These decisions have impacted employee engagement levels

and perceptions globally, leading to changes in leading drivers of employee

engagement. In uncertain times, organizations need to focus on harnessing the

discretionary effort that engaged employees deliver. This makes the difference in

how companies are affected during the economic downturn, how quickly they

emerge from it, and how strong they are in the future after the downturn passes.

Page 5: Employee Engagement the Key to Improving Performance

Overall trends in engagement scores, globally and for each region. In 2010, the

global engagement score was 56%, down four percentage points from 60% in

2009. The reason for this decline is primarily due to changes in the regional

scores of Asia-Pacific, Europe, and North America. The regional engagement

scores in Asia-Pacific, Europe, and North America mirror the global decline.

However, the employee engagement scores in Latin America have stayed

consistent over this time period. At the industry level, the financial sector is the

main sector across all regions that attributed to this fall from 2009 to 2010. Top 3

engagement drivers are career opportunities, brand alignment, and recognition.

Conclusion:

The level of engagement determines whether people are productive and stay

with the organization— or move to the competition. Research highlights that the

employee connection to the organizational strategy and goals, acknowledgment

for work well done, and a culture of learning and development foster high levels

of engagement. Without a workplace environment for employee engagement,

turnover will increase and efficiency will decline, leading to low customer loyalty

and decreased stakeholder value. Ultimately, because the cost of poor employee

engagement will be detrimental to organizational success, it is vital for HR to

foster positive, effective people managers along with workplace policies and

practices that focus on employee well-being, health and work/life balance.

References:

http://www.accordsyst.com/papers/engagement_wp.pdf

http://www.blessingwhite.com

http://www.cipd.co.uk/changeagendas

http://www.aonhewitt.com.