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10320140502001

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  • 1. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 1 HR INITIATIVES FOR ORGANIZATIONAL EFFECTIVENESS WITH SPECIAL FOCUS ON EMPLOYEE ENGAGEMENT – A case study on Eisai Pharmatechnology & Manufacturing Pvt. ltd, India *Mr. Som Raj Saini **Dr. YVVSSS Vara Prasad INTRODUCTION Employee engagement is the level of commitment and involvement an employee has towards the organization and its values, employee engagement remains a critical concern for organizations, and with good reason. Engaged employees are those who are productive, active and connected, in other words indispensable. 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 resultant 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. Improving and assessing engagement of employees to re-engage and re-energize employees is the first step in the process of retention of employees to meet both professional and personal success. Employee engagement is the harnessing the members of the organization in order to gain the organizational effectiveness (Kahn, 1990). According to Baumruk (2004), employee engagement is the process of making an employee to be psychologically as well as physically present when occupying and performing an organizational role. Therefore, it is important for an organization to engage its employees to the fullest for performing effectively and efficiently. In any organization, the human resource department plays a significant role in engaging its workforce. This research intends to INTERNATIONAL JOURNAL OF MARKETING AND HUMAN RESOURCE MANAGEMENT (IJMHRM) ISSN 0976 – 6421 (Print) ISSN 0976 – 643X (Online) Volume 5, Issue 2, March – April (2014), pp. 01-09 © IAEME: www.iaeme.com/ijmhrm.asp Journal Impact Factor (2014): 4.7830 (Calculated by GISI) www.jifactor.com IJMHRM © I A E M E
  • 2. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 2 investigate in detail the various HR initiatives taken by Eisai Pharmatechnology and Manufacturing Private limited, India (called EPM here after in short) and their impact in engaging employees at the work place and the overall organizational effectiveness. OBJECTIVES • to understand the HR initiatives towards employee engagement • to examine the strategies and practices of EPM for effective organizational performance • to review the HR initiatives and the progress of EPM after these initiatives. • to see how the HR initiatives have effected the overall performance of EPM through employee engagement LITERATURE REVIEW Right Management Company (2009) carried out an investigation about the employee engagement and its effectiveness in an organization. The drivers of the employee engagement are also analyzed. Employee engagement is powerfully linked in order to range the business success factors they are employee efficiency or employee performance, safety, productivity, customer service and satisfaction, attendance and retention, customer loyalty and retention and profitability. The organization’s culture, leadership ability, strategy execution, processes and structure are all inter-related with levels of employee engagement. Some fundamental engagement factors work together to deliver a great customer experience and profitability. Engaged employees lead to increased retention, productivity, customer satisfaction and loyalty. Organization must focus on both the lag and lead indicators of the business success, so that the business leaders require knowing about the levels of engagement in the same way as about other information of critical areas like productivity, financial and customer data. The business-oriented measurement, robust and analysis is needed to recognize the key drivers of engagement for the organization. Schroeder-Saulnier (2009) carried out an investigation to analyze the strategies for effective change management in an organization. Strategies for effective change management in an organization are providing adequate support and development for line managers in order to lead employees through the change, providing coaching for managers who need help, measure success, construct effective communication systems, involve top leadership and understand previous change initiatives. The process of effective change management cannot be an afterthought. It needs a comprehensive effort that involves all levels of the organization that are driven by the top management. Change is a constant in an organization. For the effectiveness of an organization change management is necessary. To succeed and thrive in the today’s tumultuous and rapid-paced market, organizations need an agile workforce which effectively adapt to, respond to and perform under these conditions for the organization’s effectiveness. Plan must be developed with measurable goals. Identify and develop the effective behaviors in the change management within the workforce. Carefully implement processes which encompass development, leadership support, effective communication and the success measures. Chughtai (2013) carried out a research to identify the mediating role of the employee engagement between the human resource practices and turnover intentions. The employees of the telecom companies feel that the human resources practices when used properly direct
  • 3. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 3 them to perform their job in an efficacious manner. The utilization of practices of competence development makes the employees feel that they are the essential part of the organization and they also have to take care of the organization. The prospects of promotion within the organization improve the record of the employee. A competitive pay structure will bring the employee in the desirable mental contentment state and kills any negative thoughts that bring any sort of inferiority complex in the job. Recognition of employees by managers and supervisors will provide them a sense of realization and their hard work and efforts must be acknowledged. Granting employees authority to make decisions and make them accountable for what they perform will result in higher responsibility level shown by the employees. An overall policy of work place that encompasses flexible timings, job, holidays, personal life balance and friendly environment contributes to the employees’ productivity and attachment to the organization. It is concluded that the HR practices will help in triggering the employee engagement. Ahmad (2011) analyzed the relationships between the human resource management practices such as career development, training and development, compensation and benefits and dimensions of the employee engagement of job engagement and organization engagement. The results revealed that all four dimensions of the practices of human resource management have significant positive relationship with intention to stay. The compensation and benefits have the highest correlation with an intention to stay. The result of the study also found that the manufacturing technicians are more engaged to the effectiveness of the organization. The intention to stay does not show relationship with the job engagement. The practices of human resource management are found to relate more the intention to stay than the employee engagement. It is concluded that the human resource practices four dimensions were positively, statistically and significantly related to intention to stay with benefits and compensation being the most significant. Organizational engagement is a stronger job engagement predictor and it is the most profound reason for the employees’ intention to stay. Tan et al (2011) refers that heightening the organization’s innovation can be done through effective practices of human resource management and effective knowledge management. This study analyzes the direct relationships between the human resource management practices like performance appraisal, training, career management, reward system and recruitment. This result reveals that when organizations have higher implementation of training, it will advance the employees growth, requisite skills and their potential in order to learn. Employees are able to generate new ideas and new understandings which will be useful for the organization’s innovation and organizational effectiveness. As a result, efforts taken in order to enhance the effectiveness of the knowledge management in the organization will be useful in enhancing the performance of the organizational innovation. Performance appraisal is identified to have both direct and indirect impact on the administrative innovation, but not on the process innovation and product innovation. High motivation will help increasing the employees’ willingness to generate new ideas to raise the administrative innovation. Harris (2011) carried out an investigation to analyze the human resource best practices to improve the organizational effectiveness. 38 per cent of the respondents feel that structured governance and business case development can enhance the organizational effectiveness. 28 per cent of the respondents feel that developing advanced workforce planning capabilities can enhance the organizational effectiveness. 27 per cent of the respondents say that implementing the right human resource philosophies will enhance the organizational effectiveness. 25 per cent of the respondents feel that reducing administrative work for human resource business partners is the best practices for the improvement of
  • 4. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 4 organizational effectiveness. 20 per cent of the respondents say that the implementing the flexible human resource organization design is the best practices for the improvement of organizational effectiveness in the organization. RESEARCH METHODOLOGY The study uses positivism as the research paradigm. Positivism is the methodology that has been used in the survey approach. The method will collect data from the respondents in a larger sample size and it will use close-ended questionnaires in order to find the results (Krishnaswamy et al, 2010). This study uses quantitative analysis. It tends to be depended on numerical measurements of particular aspects of phenomena (Paneerselvam, 2009). The research design used in this study is descriptive research design. The sampling design used in this study is simple random sampling. This research makes use of primary data as well as secondary data. Primary data has been collected from 172 employees of Eisai Pharmatechnology & Manufacturing Private Limited from India and the secondary data has been collected from Eisai portal. The data collected has been analyzed using the statistical tool chi-square test through the usage of SPSS software. DISCUSSION The following section presents the discussion on the statistical analysis (Refer Annexure 1) done on primary data gathered from a sample of 172 employees working in Eisai Pharmatechnology & Manufacturing Private Limited, India. Employees were questioned regarding the work life balance and work culture, procedures and policies and business challenges and opportunities, consciousness about quality and safety, leadership qualities of top management etc. The survey was carried out on line in website of SurveyMonkey and thus full confidentiality was maintained. The following are the findings of analysis of data gathered through questionnaire: The overall level of employee engagement was found at 95% which is a record in itself. The compliance culture in the company has been found at 99% (both Strongly Agree and Agree put together). To the question of their feeling pride in working for Eisai, the positive responses were as high as over 99%. An employee finds feeling of pride only in the company where he/she finds that the overall working of the company has excellent quality. This also speaks of excellent work culture. To another question of recommending company products and services to friends and relatives, 96% are positive and favorable responses. Coupled with high quality and safety culture, this speaks volumes again about the work culture in the organization. The quality and safety consciousness was found among employees above 98%. When asked about their passion about the company mission and goals 99% were the favorable responses. To another question on the work life balance, 92% was positive response. These seem important factors for the engagement. According to Eisai (2013) the company gives similar chance to all their employees and strives to offer a fair working surrounding where they are free from harassment, unfair and discrimination issues. Their company motivates them to contribute to fair working surrounding actively so employees are proud to work in this organization. Another very important factor with which employee engagement is highly affected is the leadership qualities of the top management of the company. The quality of the leadership and their style of management affect engagement in a major way. To this question on top management leadership, we found 96% positive and favorable responses. Following the
  • 5. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 5 question of top leadership style, the next question discussed by respondents was about the procedures and policies of the company. It was found from the analysis that 93 % of the respondents strongly agreed or agreed. Next question pertained to the fact whether in their company, promotions are given on merit to the most deserving employees, 85% were the favorable responses. EISAI group respects and welcomes diversity and trust in employee’s fair treatment. All their activities involving training, recruitment and promotion reflect that trust. The corporate policies of Eisai promote the accessibility of employment chances that are accessible equally to all skilled individuals and free from illegal discrimination. Eisai group communicates with healthcare experts in their promotional activities of hhc (human health care) (EISAI, 2013). The company has unique hhc philosophy which covers wellness of patients and their families. To a question on employees being informed about significance of the hhc philosophy, there was 99% favorable response. Same way, 98% respondents said the purpose of the philosophy of hhc with company initiatives is being met. When the responses were analyzed to know whether the old employees contribute more towards engagement, it revealed that engagement level in 69 employees, who joined the company till end December, 2010 was 95.12%. Those who joined from beginning of January, 2011 till end August, 2012, 67 in numbers, gave employee engagement rating of 94.60%. However, in the newest set of 36 employees who became members of the EPM team from September, 2012 onwards, engagement level of 93.38% was found. This leads to the conclusion that older employees like and contributed more to the work culture as also to the engagement level. CONCLUSION Employee engagement is a positive view owned by employees towards an organization. It has direct linkage with the customer satisfaction level and thus performanceof the organization. The concept is acquiring familiarity and significance rapidly in workplace. Engaged employees can help their company accomplish their mission, contribute more effectively in their strategy and produce essential outcomes of the business. This study reveals that Eisai has clarity in its vision, mission and objectives. Further this study makes it clear that employee engagement is considered as a regular method of improvement, action, learning and measurement at Eisai. Even though the HR initiatives adapted at EISAI Pharma at present are good enough in engaging its employees, the company is required to perceive in what way different employees are influenced by different engagement factors and concentrate on those to accomplish strategic results as well as to continue developing further overall effectiveness. RECOMMENDATIONS EISAI Pharma must measure their employees’ engagement levels frequently. They must not remain contended with their present employee engagement levels. In such situation of high levels of engagement, sustaining the current levels too remains a critical issue. Management must have confidence that the measures used to estimate engagement are valid and reliable. It is recommended that EISAI Pharma must review their engagement drivers from time to time. They must carry out research that incorporate robust analysis and design to decide its engagement levers or drivers. EISAI must build and create a value driven firm and organize their own research to decide distinct engagement drivers for their business. Further EISAI must continue to track the levels of employee engagement. They are required to
  • 6. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 6 evaluate performance and engagement levels of employees and identify the success strategies that have resulted in the improved performance and engagement of their business. They must conduct extensive surveys yearly or biannually assisted by smaller half yearly tracking surveys. An engaged workplace is the key to enhanced performance of business and sustained competitive benefit. Therefore, Eisai, on engaging its employees can get the best out of them and sustain its leadership position in the market in the long run. REFERENCES 1. Baumruk, R. (2004) ‘The missing link: the role of employee engagement in business success’, Workspan, Vol 47, pp48-52. 2. Kahn, W.A. (1990) ‘Psychological conditions of personal engagement and disengagement atwork’, Academy of Management Journal, Vol 33, pp692-724. 3. Right Management Company (2009), Employee Engagement: Maximizing Organizational Performance, Leadership Insights, Retrieved On:21 Nov 2013, Retrieved From: https://www.right.com/thought-leadership/research/employee- engagement---maximizing-organizational-performance.pdf 4. Schroeder-Saulnier.D (2009), Organizational Effectiveness: Preparing Your Workforce for Change, Retrieved On: 21 Nov 2013, Retrieved From: http://www.right.com/capabilities/organizational-effectiveness/preparing-your- workforce-for-change-a-strategy-for-success.pdf 5. Chughtai.A (2013), Role of HR Practices in Turnover Intentions with the Mediating Effect of Employee Engagement, WSeas Transactions on Business and Economics. 6. Ahmad. (2011), The Relationships Between Human Resource Management Practices, Employee Engagement and Intention to Stay Among Manufacturing Technicians, Universiti Utara Malaysia. 7. Tan.L et al (2011), Human Resource Management Practices and Organizational Innovation: Assessing the Mediating Role of Knowledge Management Effectiveness, Electronic Journal of Knowledge Management, Vol 9, Issue 2. 8. Harris.S (2011), The Top Best Practices For the High-Impact HR Organization, Bersin and Associates Research Report. 9. EISAI (2013), accessed on 22nd November 2013 available at http://www.eisai.co.in/. 10. EISAI (2013), accessed on 22nd November 2013 available at http://www.eisai.com/pdf/ecompany/ehandbook1.pdf 11. Paneerselvam A (2004), Research Methodology, PHI Learning Private Limited, New Delhi, p 192. 12. Hollander, Myles, and Wolfe, Douglas A., Nonparametric Statistical Methods, New York: John Wiley, 1973. 13. Krishnaswamy, Sivakumar & Mathirajan (2010) management research methodology, Pearson publishing. 14. Guest D (1997) Human resource management and performance, A review and research agenda, The international journal of human resource management, Vol: 8(3), Pg: 263-275. 15. Wood (1999a), Getting the measure of the transformal high performance organization, British journal of industrial relations, Vol: 37(3), Pg: 391-417. 16. Tyson (1997), Human resource strategy a process for managing the contribution of HRM to organizational performance, The international journal of human resource management, Vol: 8(3), Pg: 277-290.
  • 7. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 7 Annexure: 1 ♦ Eisai has strong compliance culture Frequency Percent Valid Percent Cumulative Percent 1 0.6 0.6 0.6 65 37.8 37.8 38.4 106 61.6 61.6 100.0 172 100.0 100.0 ♦ I am proud to tell others that I work at Eisai Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 0.6 0.6 0.6 Agree 67 39.0 39.0 39.5 Strongly Agree 104 60.5 60.5 100.0 Total 172 100.0 100.0 ♦ I recommend the company’s products and services to friends and relatives Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 2 1.2 1.2 1.2 Disagree 5 2.9 2.9 4.1 Agree 72 41.9 41.9 45.9 Strongly Agree 93 54.1 54.1 100.0 Total 172 100.0 100.0 ♦ My company is highly Quality and Safety conscious Frequency Percent Valid Percent Cumulative Percent Valid Disagree 2 1.2 1.2 1.2 Agree 46 26.7 26.7 27.9 Strongly Agree 124 72.1 72.1 100.0 Total 172 100.0 100.0
  • 8. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 8 ♦ I am proud to be associated with my company as it has clarity of vision mission and objectives Frequency Percent Valid Percent Cumulative Percent Valid Disagree 4 2.3 2.3 2.3 Agree 87 50.6 50.6 52.9 Strongly Agree 81 47.1 47.1 100.0 Total 172 100.0 100.0 ♦ My company encourages my work life balance Frequency Percent Valid Percent Cumulative Percent Valid Disagree 13 7.6 7.6 7.6 Agree 112 65.1 65.1 72.7 Strongly Agree 47 27.3 27.3 100.0 Total 172 100.0 100.0 ♦ I am happy with the company`s policies Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 1 0.6 0.6 0.6 Disagree 11 6.4 6.4 7.0 Agree 100 58.1 58.1 65.1 Strongly Agree 60 34.9 34.9 100.0 Total 172 100.0 100.0 ♦ In my company, promotions are given on merit to the most deserving employees Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 6 3.5 3.5 3.5 Disagree 19 11.0 11.0 14.5 Agree 109 63.4 63.4 77.9 Strongly Agree 38 22.1 22.1 100.0 Total 172 100.0 100.0
  • 9. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 5, Issue 2, March-April (2014), pp. 01-09 © IAEME 9 ♦ Employees are informed about the significance of human health care philosophy (hhc) of Eisai. Frequency Percent Valid Percent Cumulative Percent Valid Disagree 1 0.6 0.6 0.6 Agree 73 42.4 42.4 43.0 Strongly Agree 98 57.0 57.0 100.0 Total 172 100.0 100.0 ♦ Eisai helps employees in developing and maintaining their healthy lifestyle Frequency Percent Valid Percent Cumulative Percent Valid Disagree 12 7.0 7.0 7.0 Agree 97 56.4 56.4 63.4 Strongly Agree 63 36.6 36.6 100.0 Total 172 100.0 100.0

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