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A minor project report

  1. 1. A MINOR PROJECT REPORT ON EMPLOYEE ENGAGEMENT IN STRATEGIC DECISION MAKING Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General BBA III Semester (Morning) (A) Batch 2011-2014Submitted to: Submitted by:Dr. Ruchi Singhal Narendra BarwalDesignation 01714101711 JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI 1
  2. 2. STUDENT’S UNDERTAKINGI hereby certify that this is my original work and it has never beensubmitted elsewhere.Project Guides: By Narendra BarwalFaculty 2
  3. 3. CONTENTS Description Page No.Contents with page no. (i)AcknowledgmentList of tablesList of figuresExecutive SummaryCertificate of completionIntroduction to topicObjectivesLiterature reviewCompany ProfileResearch MethodologyAnalysis & InterpretationFindings & InferencesLimitationsRecommendations and ConclusionAppendicesBibliography 3
  4. 4. Acknowledgement 4
  5. 5. List of Tables 5
  6. 6. Executive summary Employee Engagement: fact or fad? If you are reading this executivesummary you are no doubt already aware of employee engagement becomingan ever more important priority for business. The vital lessons learned by someof the world‘s leading businesses in creating, implementing and measuring thereemployee engagement programs provide benchmark data to ensure that thereader is well-informed about this critical topic. The Hay Group defines engaged performance as ―a result that is achievedby stimulating employees‘ enthusiasm for their work and directing it towardsorganization success. The result can only be achieved when employees offer animplicit contract to their employees that elicit specific positive behavior alignedwith organization‘s goals‖. Employee engagement is associated with many desirable outcomes, suchas job satisfaction, intention to stay and job performance. Companies with agreater number of engaged employees typically have lower operating cost,higher customer satisfaction and higher profits. There is a tangible monetarybenefit to companies investing time and resources in fostering higherengagement within their employees. We also explore the specific roles and responsibilities of the workforce inbuilding a more engaged organization. Our focus: individual employees,managers, and executives. These three roles are incremental, depending onsomeone‘s level in the organization: Everyone is accountable for his or her ownengagement; anyone with direct reports much coach team members to higherlevel of engagement and manages his or her own engagement; and executivesset the tone for an engaged organization plus shoulder the responsibility ofindividuals and managers.Everyday Activities Leading To Greater EngagementThere some everyday activities that can lead to greater employee engagement. Itbegins with looking at the experience of new employee, and continuesthroughout the employee experience. 6
  7. 7. Some examples of activities that can assist new employees feel engagedinclude: Providing the new employee with a realistic preview of the job Considering ways to welcome them on the first day of work, and in advance some workplace have current employees send emails to welcome new employee prior to the first of work Having through orientation that includes information about the job, and also information about how people treat each other and the climate to which every employee is expected to positively contribute Considering the employee development plan from day one- what would be helpful for every employee to know? Who would be useful for the new employee to connect with in the first couple days? 7
  8. 8. 8
  9. 9. Certificate of completion 9
  10. 10. CHAPTER 1 IntroductionThere is no single method to engaging employees in their work and in theorganization. Instead, there are a number of critical components that contributeto engagement. These critical components include: workplace relationships, theworkload, the amount of control within the workplace, the reward/ recognitionstructure, support, perceived fairness in the workplace, and ability to havemeaningful and valued work. One approach to creating engagement is that thereis a level of reciprocal interdependence necessary for the individual to engageand for the organization to success.Engagement, represented here as a two-way relationship between employee andemployer where engaged employees are expected to also have anunder0standing of the unit and work to be done, has to do with how individualsemploy themselves in the performance in their job and involves the active use ofemotions and behaviors in addition to what they know about their jobs.Engagement is realized through a series of interactions between the employeeand the manager or supervisor (representing the organization). The goal wouldbe to create interaction that would evolve into trusting, loyal, and mutualcommitments leading to full engagement in the workplace. It was best state bySaks (2006), ―when employee believes that their organization is concerned aboutthem and cares about their well-bring, they are likely to respond by attempting tofulfill their obligation to their organization by becoming more engaged.‖Management behavior plays a key role in developing engagement through therelationship they build with employees, and behaving in a way that they aresupported and play a critical role in the success of the unit. The application ofthese principles to developing a process for employees to be involved indecisions related to the workplace, and to the unit, provide a significantopportunity to that end. It is imported to note that employee engagement is along-term and ongoing process that requires continued interaction over time inorder to generate obligation and a state of reciprocal interdependence. 10
  11. 11. Define “Engagement” and why the “Old Definition” Need to bechanged The original definition of employee engagement focused on the tools used tomake employee feel engaged and encourage employee engagement.One tool used to determine a company‘s level of employee engagement issurveys. Surveys are a great way to measure employee engagement level. Theyprovide an idea of how satisfied employees are, and how to increase their jobsatisfaction. However, surveys have their flaws. Take for example a case wherea survey is used to evaluate factors in employee engagement. An employee whomight be very comfortable in the current job and not want to be promote mightgive a low rating for satisfaction within opportunity for advancement since theemployee has no interest in advancing. The overall impact on the employee‘sengagement may not be affected yet the survey might misattribute a result that alow satisfaction score in this case leads to less employee engagement. Becauseof these ambiguities surveys can often be misleading.Some example include interviews, confrontation meeting and reward system.These are all great tools, but they too can have their flaws. For this reason adefinition for employee engagement should encompass more than just the tool ittakes to make employee feel engaged. Definition should also include conditionwhich lead to employee engagement as well as what it takes to create anenvironment where employee feel engaged.The “New Definition” for EngagementRedefining engagement as a heightened emotional connection that an employeefeels for his or her organization, that influences him or her to exert greaterdiscretionary effort to his or her work‖ provides the framework In whichengagement activity operates. 11
  12. 12. Employee Engagement Defined By different companiesCORPORATIONSCaterpillarEngagement is the extent of employees‘ commitment, work effort, and desire tostay in an organization.Dell Inc.Engagement: To compete today, companies need to win over the MINDS(rational commitment) and the HEARTS (emotional commitment) of employees inways that lead to extraordinary effort.Intuit, Inc.Engagement describes how an employee thinks and feels about, and acts towardhis or her job, the work experience and the company. 12
  13. 13. CONSULTANTS and RESEARCHERSCorporate Leadership CouncilEngagement: The extent to which employees commit to something or someonein their organization, how hard they work and how long they stay as a result ofthat commitment.Development Dimensions InternationalEngagement is the extent to which people enjoy and believe in what they do, andfeel valued for doing it.The Gallup OrganizationEmployee engagement is the involvement with and enthusiasm for workHewitt AssociatesEngagement is the state of emotional and intellectual commitment to anorganization or group producing behavior that will help fulfill an organization‘spromises to customers – and, in so doing, improve business results.Engaged employees: Stay – They have an intense desire to be a part of the organization and they stay with that organization; Say – They advocate for the organization by referring potential employees and customers, are positive with co-workers and are constructive in their criticism; Strive – They exert extra effort and engage in behaviors that contribute to business success.Institute for Employment Studies 13
  14. 14. Engagement: A positive attitude held by the employee toward the organizationand its values. An engaged employee is aware of business context, and workswith colleagues to improve performance within the job for the benefit of theorganization. The organization must work to develop and nurture engagement,which requires a two-way relationship between employer and employee.KenexaEngagement is the extent to which employees are motivated to contribute toorganizational success, and are willing to apply discretionary effort (extra time,brainpower and effort) to accomplishing tasks that are important to theachievement of organizational goals.Towers PerrinEngagement is the extent to which employees put discretionary effort into theirwork, beyond the required minimum to get the job done, in the form of extra time,brainpower or energy 14
  15. 15. CHAPTER 2Companies with high employee engagement have profit margins nearly threetimes larger than that of organization with disengaged workers, according to astudy by Towers Watson.Employees who believe that their companies are high-performance deliversustainable engagement scores 16 percentage points higher than the overallcountry norm, found the Global workforce study, which surveyed 32,000employees globally – 1,000 of which were from Canada.However, more than two-third (67 per cent) of Canadian workers are not fullyengaged in their work and are frustrated by insufficient support from theirorganizations."When workers are not fully engaged, it leads to increased risk for employers. Itmakes companies more vulnerable to lower productivity and higher inefficiency,greater rates of absenteeism and turnover and increased costs for chronicillnesses," said France Deferens, leader of Towers Watsons talent and rewardspractice in Montreal. "Without more attention to the fundamentals of sustainableengagement — including improving on-the-job support for employees andincreasing efforts to deepen employees sense of attachment to the organization— employers will have a harder time generating growth and returns."The Global Workforce Study breaks new ground in understanding and measuringwhat contributes to sustained employee engagement, said Towers Watson. Theequation for sustainable engagement is the sum of three distinct elements:•Traditional engagement: Employees willingness to give effort to theiremployer.•Enablement: Having the tools, resources and support to get work doneefficiently. 15
  16. 16. •Energy: A work environment that actively supports physical, emotional andinterpersonal well-being."Enablement and energy are the really critical factors in this equation," saidOfelia Isabel, Towers Watsons Canadian leader for talent and rewards. "Its onlyin the last few years, when weve seen more pressure in the system, that theimportance of enablement and energy has risen to the forefront."Companies have known for years that engagement is important to performance,whats now clear is the significance of effective workplace resources andinterpersonal well-being, along with an understanding of the role that seniorleadership plays in sustaining that well-being, said Julie Naismith, a senior talentand rewards consultant at Towers Watson.According to the study, virtually all (95 per cent) of highly engaged Canadianemployees believe that that they have the work tools and resources they need toachieve exceptional performance — compared to only 20 per cent of disengagedemployees.Similar disparities appear with regard to the ability to sustain energy throughoutthe workday (97 per cent versus 32 per cent) and sense of personalaccomplishment at work (99 per cent versus 33 per cent).However, amongst all Canadian survey participants, only one-third (38 per cent)believe that their organization and senior leaders encourage and support ahealthy workforce and just 39 per cent think that senior leaders have a sincereinterest in their well-being, found the survey. 16
  17. 17. HISTORICAL BACKGROUND OF EMPLOYEE ENGAGEMENTOver the past decade, the way in people are managed and developed of workhas comet be recognized as one of the primary factors in achieving improvementin organizational performance. This reflected by popular idioms such as ―peopleare our most important assets‖. Back in the good old days of cooperate world,things were pretty simple. Companies put people on career tracks straight out ofcollege; they gave employees a job for life and waved them good bye with a goldwatch at retirement. The promise of the stable life as a company employee keptboth morale and productivity high. Then things changed. Competition increased, 17
  18. 18. margins shrank and shareholder got more demanding. Suddenly, company staffwere finding the very job security they‘d counted on was disappearing, and atspeed. This upheaval meant companies had to find new ways to motivate theiremployees in order to make them more productive since, without stability,employees were looking for something else from their employers. And thus,Engagement was born. In itself, engagement isn‘t really a new idea; owners andmanagers have been talking about engagement, in one form or another, forcenturies… they just used different words to express it. In former times,engagement focused more on productivity and achieving results through threat ofpunishment or by means of reward. But common sense- and goodcommunication- eventually won out and, today organization everywhere arespending serious money on all forms of employee engagement. Boiled down, itsimply means ‗developing a happy and loyal workforce‘. Enlightened managersnow realized that any company as a whole will benefit when its employees knowwhat‘s going on and they feel defining what makes a workforce happy, and inunderstanding how this good will translates into company success. From theextant literature review, it is acknowledged that successful organizations share afundamental philosophy of valuing and investing in their employees. In fact manyresearch studies have described human resources management as a means ofachieving competitive advantage. Consistent with this it is an equally importantissue for the organization to retain their critical (core) employees. Mostorganization today continues to struggle with retention because they are relyingon salary increase and bonuses t prevent turnover. Essentially more organizationis now realizing that relation is a strategic issue and continues to be competitiveadvantage. The term ―engagement‖ stems from the work of Kahn (1990) whodistinguished between being engaged and disengaged at work. Putting thehumanistic factors together, bear, spectre, Lawrence, Quinn-Mills and Walton(1984) created the ‗Harvard Business School‘ model of HRM which focused onpeople in an organization to be the key resources. In light of such criticalemphasis being placed on human capital, Paula Ketter has aptly noted.―Engagement is all about creating a culture where people do not feel misused,overused, underused or abused‖. At a very basic level, employee engagement 18
  19. 19. draws from the tenets of the ‗Hierarchy of Needs‘ as conceptualized by Maslow,the highest stage of which is self-actualization; the pinnacle of an individual‘sfulfillment of talent and potential. The theory of ‗higher order needs‘ was largelyoverlooked in the heydays of scientific ‗assembly line‘ manufacturing.10 Common Themes: How Companies Measure EngagementEmployers typically assess their employees‘ engagement levels with company-wide attitude or opinion surveys. (See ―Employee-Engagement Survey Items:Samples.‖) A sampling of the criteria featured in such instruments reveals 10common themes related to engagement: 1. Pride in employer 2. Satisfaction with employer 3. Job satisfaction 4. Opportunity to perform well at challenging work 5. Recognition and positive feedback for one‘s contributions 6. Personal support from one‘s supervisor 7. Effort above and beyond the minimum 8. Understanding the link between one‘s job and the organization‘s mission 9. Prospects for future growth with one‘s employer 10. Intention to stay with one‘s employer 19
  20. 20. Employee Engagement: Five Companies That Get It1. Make it Strategic: Intel CorporationSet the stage for employee buy-in by sharing a vision that ties engagementEfforts to your core vision and larger business strategy—something Intel does byCalculating each employee‘s annual bonus according to sustainability results. ByChallenging all departments to improve their processes and products withsustainability in mind, Intel celebrates the diversity of its professionals whileincreasing accountability for multiple dimensions of value creation and impact.2. Make it Personal: Hyatt Hotels & ResortsIssues like climate change and biodiversity are complex, but framing these bigissues in relatable terms is not impossible. Take inspiration from Hyatt: Thehospitality company‘s corporate responsibility platform, Hyatt Thrive, leveragesthe power of peer-to-peer influence and social networking to connect and 20
  21. 21. empower 300 Green Teams worldwide. Employees use a Facebook-like interfaceto post photos, questions, and even presentations about their local sustainabilityefforts.3. Make it Flexible: Wal-MartWhile top-down leadership is important, the best employee engagementprograms are co-created and co-owned by employees themselves. Wal-Mart‘sglobal engagement platform, My Sustainability Plan (MSP), was created with thegoal of helping more than two million associates in 28 countries take everydaysteps to live healthier, greener lives. The program encourages associates tochoose goals most relevant to their own lives and break those goals into small,doable everyday actions—whether that‘s eating a salad every day or biking towork.4. Make it Easy: GoogleTo encourage involvement, chunk your program into easy steps that‘ll let allemployees participate. Google—a company already known for employee perkslike free laundry and locally sourced meals—educates associates about theimpact of simple actions like turning off their computers at night. Micro-kitchensbuilt throughout the workplace are designed to encourage the use of reusabledishes and flatware (employees can even leave their dirty dishes in the sink).5. Make it Last: Cliff BarCreating an effective program is just the beginning. To encourage ongoingsuccess, you‘ve got to treat employee engagement as an ongoing campaign.Sustainability is such a big part of CLIF Bar‘s culture, for example, that it‘sembedded in employees‘ benefits package, including incentives for actions likepurchasing a fuel-efficient car and making eco-friendly home improvements.Momentum is ensured at weekly staff meetings, where employees share practicaltips for living greener, and at yearly award ceremonies, where individuals arerecognized for excellence according to the company‘s values. 21
  22. 22. A great engagement program is a guaranteed way to recruit and retain top talentand drive productivity. But, even more important: Engaging employees andencouraging their input builds trust, drives innovation and inspires co-creativityfrom the inside out..Is there a crisis in employee engagement?We believe that executives must be concerned about the level of engagement inthe workplace. For example, the Gallup Management Journal publishes a semi-annual Employment Engagement Index. The most recent U.S. results indicatethat: o Only 29 percent of employees are actively engaged in their jobs. These employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organization forward. o Fifty-four percent of employees are not engaged. These employees have essentially ―checked out,‖ sleepwalking through their workday and putting time – but not passion – into their work. These people embody what Jack Welch said several years ago. To paraphrase him: ―Never mistake activity for accomplishment.‖ o Seventeen percent of employees are actively disengaged. These employees are busy acting out their unhappiness, undermining what their engaged co-workers are trying to accomplish.A Towers Perrin 2005 Global Workforce Survey involving about 85,000 peopleworking full-time for large and midsized firms found similarly disturbing findings.Only 14 percent of all employees worldwide were highly engaged in their job. Thenumber of Canadians that reported being highly engaged was 17 percent. Sixty-two percent of the employees surveyed indicated they were moderately engagedat best; 66 percent of employees in Canada were moderately engaged. And 24percent reported that they are actively disengaged; the corresponding number inCanada was 17 percent. (See article by Towers Perrin authors elsewhere in thisissue.) 22
  23. 23. The survey also indicated that on a country-by-country basis, the percentages ofhighly engaged, moderately engaged, and actively disengaged employees variedconsiderably. And the results showed some interesting, perhaps counter-intuitive,results. For example, Mexico and Brazil have the highest percentages ofengaged employees, while Japan and Italy have the largest percentages ofdisengaged employees. In their report, the authors interpreted these and otherfindings as and indication that employee engagement has relatively little to dowith macro-economic conditions. Instead, it is the unique elements of the workexperience that are most likely to influence engagement.Does engagement really make a difference?Should executives be concerned about these findings? Perhaps a moreinteresting question to executives is: ―Is there a strong relationship between, say,high scores on employee engagement indices and organizational performance?‖It seems obvious that engaged employees are more productive than theirdisengaged counterparts. For example, a recent meta-analysis published in theJournal of Applied Psychology concluded that, ―… employee satisfaction andengagement are related to meaningful business outcomes at a magnitude that isimportant to many organizations.‖ A compelling question is this: How much moreproductive is an engaged workforce compared to a non-engaged workforce?Several case studies shine some light on the practical significance of an engagedworkforce. For example, New Century Financial Corporation, a U.S. specialtymortgage banking company, found that account executives in the wholesaledivision who were actively disengaged produced 28 percent less revenue thantheir colleagues who were engaged. Furthermore, those not engaged generated23 percent less revenue than their engaged counterparts. Engaged employeesalso outperformed the not engaged and actively disengaged employees in otherdivisions. New Century Financial Corporation statistics also showed thatemployee engagement does not merely correlate with bottom line results – itdrives results.Employee engagement also affects the mindset of people. Engaged employeesbelieve that they can make a difference in the organizations they work for. 23
  24. 24. Confidence in the knowledge, skills, and abilities that people possess – in boththemselves and others – is a powerful predictor of behavior and subsequentperformance. Thus, consider some of the results of the Towers Perrin surveycited earlier: o Eighty-four percent of highly engaged employees believe they can positively impact the quality of their organization‘s products, compared with only 31 percent of the disengaged. o Seventy-two percent of highly engaged employees believe they can positively affect customer service, versus 27 percent of the disengaged. o Sixty-eight percent of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19 percent of the disengaged.Given these data, it is not difficult to understand that companies that do a betterjob of engaging their employees do outperform their competition. Employeeengagement can not only make a real difference, it can set the greatorganizations apart from the merely good ones.Leading the turnaroundConsider the words of Ralph Stayer, CEO of Johnsonville Sausage. In the book,Flight of the Buffalo: Soaring to Excellence, Learning to Let Employees Lead, hewrites.I learned what I had to in order to succeed, but I never thought that learning wasall that important. My willingness to do whatever it takes to succeed is whatfueled Johnsonville‘s growth. In 1980 I hit the wall. I realized that if I kept doingwhat I had always done, I was going to keep getting what I was getting. And Ididn‘t like what I was getting. I would never achieve my dream. I could see therest of my business life being a never-ending stream of crises, problems, anddropped balls. We could keep growing and have decent profits, but it wasn‘t thesuccess I was looking for. 24
  25. 25. The CEO observed that his employees were uninterested in their work. Theywere careless – dropping equipment, wasting materials, and often not acceptingany responsibility for their work. They showed up for work, did what they weretold to do, and, at the end of their shift, went home; the same routine would berepeated the next day. An employee-attitude survey showed average results. ToStayer, it appeared that the only person who was excited about Johnsonville washimself. He began to feel like a baby-sitter for his executives and staff. Stayeralso realized that he could not inspire Johnsonville to greatness and as a result,the business he was running was becoming vulnerable.Stayer found solutions to these problems in a meeting with Lee Thayer, acommunications professor. Thayer explained to Stayer that a critical task for aleader is to create a climate that enables employees to unleash their potential. Itis not the job of a CEO to make employees listen to what you have to say; it isabout setting up the system so that people want to listen. The combination of theright environment and a culture that creates wants instead of requirementsplaces few limits on what employees can achieve. Thayer‘s message resonatedwith Stayer, as it should among business executives.Stayer began to recognize the difference between compliance and commitment,and that an engaged workforce was what he needed to help improveorganizational performance. He also learned that he needed to change his ownleadership behavior first. Leaders cannot ―demand‖ more engagement andstronger performance; they can‘t stand on the sideline and speak only ―when theplay goes wrong‖ if an engaged workforce and great performance are what theydesire. But what should leaders do, or consider doing, to increase the level ofengagement among employees? 25
  26. 26. The ten C’s of employee engagementHow can leaders engage employees‘ heads, hearts, and hands? The literatureoffers several avenues for action; we summarize these as the Ten C‘s ofemployee engagement.1. Connect: Leaders must show that they value employees. In First, Break Allthe Rules, Marcus Buckingham and Curt Coffman argue that managers trumpcompanies. Employee-focused initiatives such as profit sharing andimplementing work–life balance initiatives are important. However, if employees‘relationship with their managers is fractured, then no amount of perks willpersuade employees to perform at top levels. Employee engagement is a directhow employees feel about their relationship with the boss. Employees look atwhether organizations and their leader walk the talk when they proclaim that,―Our employees are our most valuable asset.‖One anecdote illustrates the Connect dimension well. In November 2003, theCEO of WestJet Airlines, Clive Beddoe, was invited to give a presentation to theCanadian Club of London. Beddoe showed up late, a few minutes before he wasto deliver his speech. He had met with WestJet employees at the London Airportand had taken a few minutes to explain the corporate strategy and some new 26
  27. 27. initiatives to them. He also answered employees‘ questions. To paraphraseBeddoe, ―We had a great discussion that took a bit longer than I had anticipated.‖Beddoe‘s actions showed that he cares about the employees. The employees,sensing that he is sincere, care about Beddoe and the organization; they―reward‖ his behavior with engagement.2. Career: Leaders should provide challenging and meaningful work withopportunities for career advancement. Most people want to do new things in theirjob. For example, do organizations provide job rotation for their top talent? Arepeople assigned stretch goals? Do leaders hold people accountable forprogress? Are jobs enriched in duties and responsibilities? Good leaderschallenge employees; but at the same time, they must instill the confidence thatthe challenges can be met. Not giving people the knowledge and tools to besuccessful is unethical and de-motivating; it is also likely to lead to stress,frustration, and, ultimately, lack of engagement. In her book Confidence: HowWinning Streaks and Losing Streaks Begin and End, Rosabeth Moss Kantarexplains that confidence is based on three cornerstones: accountability,collaboration, and initiative.3. Clarity: Leaders must communicate a clear vision. People want to understandthe vision that senior leadership has for the organization, and the goals thatleaders or departmental heads have for the division, unit, or team. Success in lifeand organizations is, to a great extent, determined by how clear individuals areabout their goals and what they really want to achieve. In sum, employees needto understand what the organization‘s goals are, why they are important, andhow the goals can best be attained. Clarity about what the organization standsfor, what it wants to achieve, and how people can contribute to the organization‘ssuccess is not always evident. Consider, for example, what Jack Stack, CEO ofSRC Holdings Corp., wrote about the importance of teaching the basics ofbusiness:The most crippling problem in American business is sheer ignorance about howbusiness works. What we see is a whole mess of people going to a baseball 27
  28. 28. game and nobody is telling them what the rules are. That baseball game isbusiness. People try to steal from first base to second base, but they don‘t evenknow how that fits into the big picture. What we try to do is break down businessin such a way that employees realize that in order to win the World Series, you‘vegot to steal x number of bases, hit y number of RBIs and have the pitchers pitchz number of innings. And if you put all these variables together, you can reallyattain your hopes and dreams … don‘t use information to intimidate, control ormanipulate people. Use it to teach people how to work together to achievecommon goals and thereby gain control over their lives.4. Convey: Leaders clarify their expectations about employees and providefeedback on their functioning in the organization. Good leaders establishprocesses and procedures that help people master important tasks and facilitategoal achievement. There is a great anecdote about the legendary UCLAbasketball coach, John Wooden. He showed how important feedback – positiveand constructive – is in the pursuit of greatness. Among the secrets of hisphenomenal success was that he kept detailed diaries on each of his players. Hekept track of small improvements he felt the players could make and did make. Atthe end of each practice, he would share his thoughts with the players. Thelesson here is that good leader‘s works daily to improve the skills of their peopleand create small wins that help the team, unit, or organization perform at its best.5. Congratulate: Business leaders can learn a great deal from Wooden‘sapproach. Surveys show that, over and over, employees feel that they receiveimmediate feedback when their performance is poor, or below expectations.These same employees also report that praise and recognition for strongperformance is much less common. Exceptional leaders give recognition, andthey do so a lot; they coach and convey.6. Contribute: People want to know that their input matters and that they arecontributing to the organization‘s success in a meaningful way. This might beeasy to articulate in settings such as hospitals and educational institutions. But 28
  29. 29. what about, say the retail industry? Sears Roebuck & Co. started a turnaround in1992. Part of the turnaround plan was the development of a set of measures –known as Total Performance Indicators – which gauged how well Sears wasdoing with its employees, customers, and investors. The implementation of themeasurement system led to three startling conclusions. First, an employeeunderstands of the connection between her work – as operationalized by specificjob-relevant behaviors – and the strategic objectives of the company had apositive impact on job performance. Second, an employee‘s attitude towards thejob and the company had the greatest impact on loyalty and customer servicethan all the other employee factors combined. Third, improvements in employeeattitude led to improvements in job-relevant behavior; this, in turn, increasedcustomer satisfaction and an improvement in revenue growth. In sum, goodleaders help people see and feel how they are contributing to the organization‘ssuccess and future.7. Control: Employees value control over the flow and pace of their jobs andleaders can create opportunities for employees to exercise this control. Doleaders consult with their employees with regard to their needs? For example, isit possible to accommodate the needs of a mother or an employee infected withHIV so that they can attend to childcare concerns or a medical appointment? Areleaders flexible and attuned to the needs of the employees as well as theorganization? Do leaders involve employees in decision-making, particularlywhen employees will be directly affected by the decision? Do employees have asay in setting goals or milestones that are deemed important? Are employeesable to voice their ideas, and does leadership show that contributions arevalued? H. Norman Schwarzkopf retired U.S. Army General, once remarked:I have seen competent leaders who stood in front of a platoon and all they sawwas a platoon. But great leaders stand in front of a platoon and see it as 44individuals, each of whom has aspirations, each of whom wants to live, each ofwhom wants to do well.A feeling of ―being in on things,‖ and of being given opportunities to participate indecision making often reduces stress; it also creates trust and a culture wherepeople want to take ownership of problems and their solutions. There are 29
  30. 30. numerous examples of organizations whose implementation of an open-bookmanagement style and creating room for employees to contribute to makingdecisions had a positive effect on engagement and organizational performance.The success of Microsoft, for example, stems in part from Bill Gates‘ belief thatsmart people anywhere in the company should have the power to drive aninitiative. Initiatives such as Six Sigma are dependent, in part, on the activeparticipation of employees on the shop floor.8. Collaborate: Studies show that, when employees work in teams and have thetrust and cooperation of their team members, they outperform individuals andteams which lack good relationships. Great leaders are team builders; theycreate an environment that fosters trust and collaboration. Surveys indicate thatbeing cared about by colleagues is a strong predictor of employee engagement.Thus, a continuous challenge for leaders is to rally individuals to collaborate onorganizational, departmental, and group goals, while excluding individualspursuing their self-interest.9. Credibility: Leaders should strive to maintain a company‘s reputation anddemonstrate high ethical standards. People want to be proud of their jobs, theirperformance, and their organization. WestJet Airlines is among the most admiredorganizations in Canada. The company has achieved numerous awards. Forexample, in 2005, it earned the number one spot for best corporate culture inCanada. On September 26, 2005, WestJet launched the ―Because We‘reOwners!‖ campaign. Why do WestJet employees care so much about theirorganization? Why do over 85 percent of them own shares in the company?Employees believe so strongly in what WestJet is trying to do and are so excitedabout its strong performance record that they commit their own money intoshares.10. Confidence: Good leaders help create confidence in a company by beingexemplars of high ethical and performance standards. To illustrate, consider whathappened to Harry Stone cipher, the former CEO of Boeing. He made the 30
  31. 31. restoration of corporate ethics in the organization a top priority but was soon afterembarrassed by the disclosure of an extramarital affair with a female employee.His poor judgment impaired his ability to lead and he lost a key ingredient forsuccess – credibility. Thus the board asked him to resign. Employees working atQwest and Continental Airlines were so embarrassed about working for theirorganizations that they would not wear their company‘s uniform on their way toand from work. At WorldCom, most employees were shocked, horrified, andembarrassed when the accounting scandal broke at the company. Newleadership was faced with the major challenges of regaining public trust andfostering employee engagement.Practitioners and academics have argued that competitive advantage can begained by creating an engaged workforce. The data and argument that that wepresent above are a compelling case why leaders need to make employeeengagement one of their priorities. Leaders should actively try to identify the levelof engagement in their organization, find the reasons behind the lack of fullengagement, strive to eliminate those reasons, and implement behavioralstrategies that will facilitate full engagement. These efforts should be ongoing.Employee engagement is hard to achieve and if not sustained by leaders it canwither with relative ease. 31
  32. 32. The Link between Employer Practices and EmployeeEngagementHow does an engaged workforce generate valuable business results for anorganization? The process starts with employer practices such as job and taskdesign, recruitment, selection, training, compensation, performance managementand career development. Such practices affect employees‘ level of engagementas well as job performance. Performance and engagement then interact toproduce business results. Figure depicts these relationships.Figure . Employer Practices Ultimately Influence Business Results Job Performance Business Employer Results Practices Employee Engagement and CommitmentEMPLOYEE ENGAGEMENT IN INDIAThe recent work ASIA research study by Watson Wyatt worldwide indicate thatIndia has highest percentage of highly engaged work at 78% in Asia as compareto Japan, which has the lowest employee engagement at 39%. Head to headwith China, the engagement level of the Indian worker is 20% more than hisChinese counterpart. These are all encouraging signs- but the challenges andthe opportunity ahead are manifold. The imminent US slow down, shrinking oftalent pool, slowdown in hiring, large employee expectations are all challengesfor internal communication to cope with. The Gallup organization describeemployee engagement as the ―the involvement with and enthusiasm for work‖.The challenges faced by organizations in India are around attrition, careerdevelopment and engagement while trying to keep pace with the explosive 32
  33. 33. growth. Outsourcing outfits have the highest attrition rates losing staff at a rate ofbetween 100% and 200% a year. It is widely believed that organization spend anaverage of 36% of their revenues on their employees but do not have a tangibleway to measure its Impact. A mercer study ‗What‘s working‘ – a series of nationalresearch on worker insights, highlights factors that make different to employeeengagement. The survey‘s 125 questions elicit views in the areas defined byMercer‘s Human Capital Strategic Model and cover training and development,work environment, leadership, performance management, work/life balance,communication, compensation, benefits, and engagement. The India studythrows up some fascinating directions for Hr and internal communicationprofessionals. Employee engagement is no more just about the employee‘sintent to leave. The employee‘s commitment to the organization and motivation tocontribute to the organization‘s success plays a significant role. The top threedrivers in India are trust in senior management, how the organization isperceived for customer service and fair pay. Surprisingly, from an Indian context,the least valued factors in the continuum were benefits, compensation andperformance management. In India, having a long-term career is consideredpositive and stable. Frequent job changes are viewed negatively and thereforethe high scores around the commitment count are in line with the mind set.Internal communication and HR professionals need to take note of theemployee‘s need for giving feedback and to observe action taken from this.Employees seem to be getting very little information on the organization‘s visionand future plans, a cause of concern. Other areas for action include theorganization‘s reputation in the market – congruent to other research in thisspace which believes that organization‘s which are socially responsible areconsidered better places to work. In the talent management bracket, managersfare poorly for their involvement, understanding and support as well as for meritbased appraisals.In India, with a large number of global players entering the market, the talent poolhas now a plethora of choices and even these multinationals are finding it toughto retain staff. The Canadian HR Reporter writes that employees want to knowwhere their careers are heading and that is a critical component of the talentretention strategy organizations need to focus on softer styles of leadership have 33
  34. 34. a better impact in India and china leaving organization to develop or seek leaderswho can fill this need.10 Steps That Ensure Employee Engagement SuccessImproving Employee Engagement is not the product of one initiative.Organizations need a framework to achieve significant improvement inengagement. Sequencing and content of the initiative are critical, as iscommunication.There have been many traditional approaches to improving EmployeeEngagement, including Leadership Training, Company-wide ‗Programs,‘Learning & Development and other such initiatives.Given the experiences of the traditional approaches outlined above, mostorganizations struggle to shift Employee Engagement more than a couple ofpercentage points. In discussing this with CEOs, as well as Human Resourcesand Organizational Development Executives, it became clear that newapproaches were required to create a significant shift in Employee Engagement.With old or new approaches, the factors that need to be addressed remain thesame: Job Importance: An employee needs to know how their job is important to the organization. Clarity of what is expected of them: Employees need to know what their manager expects of them. Career Advancement: Employees want to know that there is a fair and equitable system for career advancement and that, if they perform, they will be considered for advancement. Improvement and Reward: Employees want to make improvements to the organization and, if they do, would like to be compensated where possible (a reward and a sincere thank-you). Regular Feedback: Employees want to know when they, the department and the organization are doing well (or not so well). Good Relationship: Employees want to communicate with their manager, even if the news is not good. 34
  35. 35. Clear values: Employees want to know the values and behaviors that will be looked upon favorably; they don‘t want to be left in a vacuum to guess. Good Communications: Employees want to know what is happening so they‘re not the last to find out important information. In order to address the above needs, the solution needs to incorporate all of the above factors – and then some. The following is a 10-point outline of a comprehensive solution that addresses each of the major influencers outlined above.1. Define and Map the StrategyOrganization leaders need to be clear on what they are trying to achieve beforethey communicate this to the organization. If the Level 1 Strategy (OrganizationLevel) is not well defined, then leaders need to conduct a Strategy Workshopwhere Executive Management defines and refines a clear strategy. The Strategyneeds to be converted into a Strategy Map. This Map is a pictorial representationof the Strategy showing dependencies and relationships of the major parts of theStrategy. Most people understand a picture far better and have much moreinformation than from a complicated, written strategic plan.2. Define Values, Behaviors and Measurement CriteriaThe Executive and Management teams need to determine the values andbehaviors they believe are important to the organization. These need to beclearly defined and unanimously supported, as well as clearly articulated so thatthey can be readily understood. Executive Management needs to define whatpart values and behaviors will play in employee evaluations or reviews. Ifemployees aren‘t going to be evaluated on these values and behaviors, thenmanagement is wasting its time defining them. The Executive Management teamneeds to decide on the weighting for these values and behaviors in employeereviews.3. Conduct Strategy Mapping in Every Major Business Unit 35
  36. 36. Each Department must complete a Strategy Map with each employee beingallocated a part of the Strategy. This might sound difficult, but in practice it‘s not.Once you complete Strategy Mapping in each department or work unit,employees know their part of the plan. You have now achieved the firstinfluencing factor of Employee Engagement – Job Importance. Each employeenow knows what is important and his or her part of the plan.4. Create a Performance Management/Talent Management SystemSet up an automated Performance Management and Development system.Ensure the system has the capability for regular feedback, at least monthly. Thisis the platform that will deliver the clarity of role and communications aspect ofEmployee Engagement. The Talent Management component should enable anobjective way of short-listing potential candidates for promotion. This is also theplatform that will deliver the Career and Succession Planning component ofEmployee Engagement.5. Link Incentive Compensation to the Outcomes of PerformanceManagementTo achieve the Reward component of Influencing Improvement and Reward, linkcompensation to Performance. Whether it‘s a salary increment, bonus, or someother compensation consequence, there needs to be some linkage tocompensation to achieve and satisfy this component.6. Set Objectives Based on the Department Strategy MapEach Manager should sit down with their team and discuss each employee‘s rolein achieving the Strategy Map. Objectives are set with each employee and eachemployee understands his/her part of the Strategy, how their work is importantand how other employees and managers rely and depend upon their work. 36
  37. 37. 7. Make Every Manager AccountableIf your Performance Management system is capable of delivering a quick touch-base progress review each month, this becomes easy. Managers sit down withemployees for 10-15 minutes each month and do a quick update. ThePerformance Management system should restate a summary of the employee‘sobjectives and values and behaviors. After the meeting, managers should recordprogress in the system. Note that Communication will require more than just one-on-one meetings with the manager or CEO. Internal communications will need tobe planned at regular scheduled intervals as well.8. Conduct Career/Succession PlanningDesign a communications program that will advise all employees that SuccessionPlanning will now be based on merit, not just who someone knows or who playsgolf with whom. This Talent Management System should be able to produce ashort list of employees based on objective criteria, for example:Career Aspirations Match QualificationsHistorical Performance RatingPotential RatingCompetencies Match/RatingMobilityAge-Based Retirement9. Foster Positive, Supportive RelationshipsThis is a factor that is not as easily achieved by any single initiative except thatimprovements will have been made through: :Clarifying purpose – managers will interact with staff in the Strategy Mappingphase.Setting Objectives – Managers will spend time with their staff while settingobjectives. They can no longer avoid staff contact. 37
  38. 38. One-on-One Meetings – Managers should be required to conduct 10-15 minutetouch-base meetings to share progress on projects. This ongoing communicationhelps to improve relationships between employees and managers.10. Communicate Constantly and ConsistentlyAt every step along the way, employees must be clear on how they areconnected to the organization strategy. They specifically need to know their partof the plan and they need to see that their part of the plan is important to theorganization.The following are a few basic steps in this process based on thebest industry practices. 1. The specific requirements of your organization and deciding the priorities. Prepare and Design: The first step in the process is about discovering after that a customized design of carrying the whole process can be designed. It is recommended to seek advice of expert management consultant in order to increase the chances of getting it done right at the first attempt. 38
  39. 39. 2. Employee Engagement Survey: Design the questions of the employee engagement survey and deploy it with the help of an appropriate media. It can be either in printed form or set online depending upon the comfort level of the employees and your questionnaire evaluation process. 3. Result Analysis: It is the most important step in the entire process. It is time when reports are to be analyzed to find out what exactly motivates employees to perform their best and what actually disengages them and finally compels them to leave the organization. The results and information can then be delivered through presentations. 4. Action Planning: ‗How to turn the results of the survey in to an action‘ is a challenging question that organizations need to deal with the utmost care. Coaching of line managers as well as HR professionals is very important in order to tell them how to take appropriate actions to engage employees. They should also be told about do‘s and don‘ts so that they can successfully implement the changes. 5. Action Follow-up: Action follow up is necessary in order to find out if the action has been taken in the right direction or not and if it is producing the desired results.Strategies to improve Employee engagementManagers may take up following steps for creating and sustaining employeeengagement:1) Let go off any negative opinions you may have about your employeesApproach each of them as a source of unique knowledge with somethingvaluable to contribute to the company. Remember that you are co-creating theachievement of a vision with them.2) Make sure employees have everything they need to do their jobs.Why not build just such an opportunity into your department simply by askingeach staff member, or the team as a whole, "Do you have everything you need tobe as competent as you can be?" Remember, just as marketplace and customer 39
  40. 40. needs change at daily, so do your employees needs change.3) Clearly communicate whats expected of employees - What the companyvalues and vision are, and how the company defines success. Employees cantperform well or be productive if they dont clearly know what it is theyre there todo – and the part they play in the overall success of the company. Be sure tocommunicate your expectations - and to do it often.4) Get to know your employees - Especially their goals, their stressors, whatexcites them and how they each define success. Show an interest in their wellbeing and that, when appropriate, you do what it takes to enable them to feelmore fulfilled.5) make sure they are trained - and retrained - in problem solving andconflict resolution skills.These critical skills will help them interact better with you, their teammates,customers and suppliers. Its common sense - better communication reducesstress and increase positive outcomes.6) Constantly ask how you are doing in your employees eyes.Although it can be difficult for managers to request employee feedback - and itcan be equally if not more challenging for an employee to give the person whoevaluates them an honest response. To get strong at this skill and to model it foremployees, begin dialogues with employees using conversation starters such as,"Its one of my goals to constantly improve myself as a manager. What would youlike to see me do differently? What could I be doing to make your job easier?" Besure to accept feedback graciously and to express appreciation.7) Reward and recognize employees in ways that are meaningful to themThats why getting to know your employees is so important. And remember tocelebrate both accomplishments and efforts to give employees working on long- 40
  41. 41. term goals a boost.8) Be consistent for the long haul.If you start an engagement initiative and then drop it , your efforts will backfire,creating employee estrangement. People are exhausted and exasperated fromprogram du jour initiatives that engage their passion and then fizzle out whenthe manager gets bored, fired or moved to another department. Theres aconnection between an employees commitment to an initiative and a managerscommitment to supporting it. A managers ongoing commitment to keepingpeople engaged, involved in and excited about the work they do and thechallenges they face must be a daily priorityHow to keep employee happy and engagedBut exactly how do that? Here in one handy chart is a summary of approximately85,927 hours of engagement research — something we call THE MAGICALWHEEL OF ENGAGEMENT:Employees desperately want their leaders to: ENVISION a bold, clear and inspirational future; 41
  42. 42. EMPATHIZE with them to understand their motivations and strengths; ENHANCE their skills through education, exposure and experience; EMPOWER them to do meaningful work; EVALUATE them on a truthful and timely basis; ENCOURAGE them as much as humanly possibleTo help you understand your company-specific objectives, here are somegeneral objectives of employee engagement: A Workplace With Involvement – Perhaps the most important objective of employee engagement is to create a workplace with involvement of employees. This means that when you have a company picnic or quality circle meeting, you should have employees that want to be there and contribute. This desire to participate is a sign that you have actively engaged employees. Pride In Work – Employees should be proud of what they do and how they do it. A sense of pride in big projects shows that employees actually care about what they are doing. This pride is a sign of employee engagement and involvement with business decisions. A Sense Of Community – Employees should feel a sense of community in the workplace. This means that rather than viewing co-employees as just co-employees, your employees should view everyone working around them as a crucial part of the team. When your employees value each other, they will strive to make decisions that will benefit the organization as a whole. 42
  43. 43. CHAPTER 3Analysis and FindingsQ1. Do you know what is expected of you at work? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not Applicable Analysis: Figure 3.1 68% of the sample agreed to the fact that they are aware about the work which they have to perform while 32% are strongly agree on this fact.Q2. At work do you have the opportunity to do what you do best every day? a) Strongly Agree 43
  44. 44. b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: Figure 3.2Majority (53%) of the employees get the opportunity to do best of work every daywhile 29% of them disagreed on this and 18% of them strongly agreed.Q3. In the last three months, have you received recognition or praise for doinggood work? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 44
  45. 45. Figure 3.384% of the employees have received recognition or praise in the last threemonths for doing good work while 11% of the employees are highly satisfied withrecognition in their organization and 5% of them have not received any praise inthe last 3 months.Q4. Is there someone at work who encourages your development? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 45
  46. 46. Figure 3.4Generally people feel sense of belongingness when someone is there at theirworkplace to support them and 84% of the employees agreed on this fact while8% have strongly agreed and the other 8% disagreed.Q5. At work, do your opinions seem to count? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 46
  47. 47. Figure 3.5Employee‘s participation in decision making is again a criterion of measuringemployee engagement. 87% of the employees have agreed that their decisionseems to count, 10% strongly agreed to this and only 3% have disagreed.Q6. Are your associates (fellow employees) committed to doing quality work? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 47
  48. 48. Figure 3.679% of the sample agreed that their fellow employees are committed to doquality work while 11% have disagreed on this fact. 5% of them have chosenstrongly on this and the other 5% has given no comments on this.Q7. In the last year, have you had opportunities at work to learn and grow? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicationAnalysis: 48
  49. 49. Figure 3.7Learning and development is one of the most important aspects to find out theemployee engagement in the organization. 66% have agreed that they get theopportunity to learn and grow in the organization while 21% of them havestrongly agreed on it. 8% of the employees have not given any reply and 5%were disagreed.Q8. Are the pay and benefits in your organization comparable to similarcompanies? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 49
  50. 50. Figure 3.842% of the sample is satisfied with pay and packages of their organization while32% are highly satisfied with it. 16% disagree on the competitive pay andbenefits packages.Q9. Are job promotions in this organization fair and objective? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 50
  51. 51. Figure 3.9Half the percentage (50%) of the employees believes that the promotions aredone objectives, 31% strongly agree to the fairness of the same while 13% doubtthe fairness and objectivity of the process.Q10. Are organization policies clearly communicated in the organization? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 51
  52. 52. Figure 3.1047% of the sample has agreed to be clear on the policies that prevail in theirrespective organization. A good proportion of 425 strongly agreed on the claritywhile only 11% reported ambiguity on the policies.Q11. Do you see yourself continuing to work for this organization two years fromnow? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnal ysis: 52
  53. 53. Figure 3.11A majority of 50% has agreed to continue to serve in the same organization fornext two years, 24% are very much willing to do the same whereas a striking26% of the employees are those who are on the verge to leave the organizationsince they are not even committing for next two years.Q12. Do you recommend your friends/relatives in your organization? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree e) Not ApplicableAnalysis: 53
  54. 54. Figure 3.1224% of the sample surveyed strongly believes in recommending friends andrelatives to their organization, 63% agreed to this while 13% has disagreed theoption.Q13. Select and rank the following engagement tools applicable in yourorganization. Please rate the options, from 1-8(being the lowest and 8 being thehighest). a) Stress Management b) Work Life Balance c) Career Development d) Employees Participation In Decisions Making e) Counseling/ Feedback f) Rewards And Recognition Schemes g) Employee Referral Scheme h) Retirement PlansAnalysis: 54
  55. 55. Figure 3.13Reward and recognition schemes to be the most popular engagement tollamongst the employees, next is efforts on career development. Employeeparticipation in decision making and counseling/feedback seems to be equallyeffective, next in line is Employee referral scheme. Stress management is thenregarded as important but Retirement plans and work life balance surprisinglyseem to be least effective. 55
  56. 56. 56