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INDIAN JOURNAL OF APPLIED RESEARCH X 89
Volume : 6 | Issue : 6 | June 2016 | ISSN - 2249-555X | IF : 3.919 | IC Value : 74.50Research Paper
Employee Engagement: An Inevitable Factor
To Organizational Success in The Contemporary
Business
Dr. Amarendra Pratap Singh Jianguanglung Dangmei
Professor and Head, Department of Business
Management Indira Gandhi Tribal University, (IGNTU)
Amarkantak (M.P)
Research Scholar, Department of Business
Management Indira Gandhi Tribal University,
(IGNTU) Amarkantak (M.P)
Management
Keywords
Employee Engagement, Organizational growth, Organizational performances,
Contemporary Business.
ABSTRACT In the changing business environment due to competition and managing changes, organizations face dif-
ficulties to maintain organizational success. However, the employee engagement is a concept which if
implemented properly can make a lot of difference in the organization. Employee engagement is defined as the posi-
tive attitude of an employee towards the organization and its value which exert to greater discretionary effort to ensure
organizational success and sustainability. It is a simple fact that the engagement of employees towards their work and
organization can make a huge difference for the growth and survival of the organization. Almost all of the companies
now explore the possibilities for adopting employee engagement as a strategy for organizational growth and success
as employee engagement is highly associated with organizational performances. It is essential to understand employee
engagement as engaged employees who are fully involved and committed to their works are willing to go the extra
mile for their organization to ensure its success. This paper attempts to throw light on the nature of employee engage-
ment to ensure organizational success in the contemporary business.
Introduction
Employee engagement is a concept which if implemented
properly can make a lot of difference in the organization.
It is a simple fact that the engagement of employees to-
wards their work and organization can make a huge differ-
ence for the growth and survival of the organization. In
the changing business environment due to high competi-
tion, organizations have changed their strategy to adopt
employee engagement as employee engagement and or-
ganizational performances are highly associated (Concel-
man, 2005). Almost all of the companies now explore for
adopting employee engagement as a strategy for organi-
zational success. According to Erickson (2004), the best
ways to shape the behavior of an employee towards work
is to improve employee engagement. Thus, understanding
the employee engagement will play an important role for
better performances for sustainability and organizational
success.
1. Employee Engagement:
Employee engagement is defined as the positive attitude
by the employee towards the organization and its value
(Robinson et al., 2004). Engaged employees have high
emotional connection for the organization which exert to
greater discretionary effort towards the organizational suc-
cess (Gibbon, 2006). They are aware of business context,
and cooperate with fellow worker to increase performance
within the job for the benefit of the organization. Employ-
ee engagement is thus the intensity of commitment and
discretionary effort of employees towards their organiza-
tion and its values.
2. Key Drivers of Employee Engagement:
It is essential to understand the drivers of employee en-
gagement which make employees fully involved and com-
mitted to their works, care about their organization are
willing to go the extra mile for their organization to en-
sure its success (Sahoo, C.K. and Mishra, S. 2012). Many
researchers have identified factors leading to employee
engagement and those important key drivers of employee
engagement in the 21st
century are as follows:
(a) Leadership: Leadership is one of the most important
non-monetary drivers of performance and can make em-
ployees engaged to give their best to the organization
(Momilaro et al, 2005). Leadership is extremely important
for increasing the level of employee engagement (Sahoo
C.K. and Mishra, S., 2012).
(b) Employee Well-being: If the organization considers the
well-being of the employees, they will have an emotional
attachment with the organization which leads to engage-
ment. It is considered as the top most driver of engage-
ment in the study of 35,000 employees in U.S companies
(Tower Perrin, 2003).
(c) Communication: Communication is crucial to lead em-
ployees to engagement and employees are engaged when
they have the opportunity to share their views and opin-
ions upwards and keeping them informed about what is
going on in the organization (CIPD, 2006 & Sahoo C.K.
and Mishra, S., 2012)
(d) Pay & Benefits: A company that has proper pay sys-
tem will motivate the employees to work in the organiza-
tion and it has been suggested that with certain benefits
and compensation boost the level of employee engage-
ment in the organization (Aon Hewitt, 2012).
(e) Rewards and Recognition: Maslach et al. (2001) con-
sider that rewards and recognition are important for en-
gagement. Recognition is crucial for employee engage-
ment as 72% of 568 respondents consider it as most
impactful employee engagement driver (Harvard Business
Review, 2013).
(f) Career Advancement: Many researchers have pointed
out that organization that provides the opportunities of
bright future career plan to the employees will produce
engagement. And it has been demonstrated that career
90 X INDIAN JOURNAL OF APPLIED RESEARCH
Volume : 6 | Issue : 6 | June 2016 | ISSN - 2249-555X | IF : 3.919 | IC Value : 74.50Research Paper
development influences employee engagement and even
retaining the most talented employees in the organization
(Concelman, 2005).
(g) Working Environment: Organizations that provide a
good working environment and supportive system that
gives what they need to perform consistently at their peak
drive engagement successfully (Tower Watson, 2011).
(h) Living a Balanced life: Organizations that build cul-
tures that give importance to work balance and support
employees to achieve life balance achieved engaged em-
ployees (Molinaro V. & Weiss D. (2005).
(i) Decision-Making Authority: Perrin, T. (2003) also found
that decision- making authority is an important driver of
employee engagement and proper sharing of power with
employees through participative decision making will in-
duce feeling of sense of belongingness thereby increasing
their engagement in realizing it (Sahoo, C.K. and Mishra, S.
(2012). Organizations that empower employees to take de-
cisions in the their job responsibilities will create employee
engagement (Swaminathan, J., & Gowrishankar, U., 2010).
(j) Training and Development: Skills developments
through training and development make employees dis-
charge their responsibilities and also make them prepare
for future challenges that develop new skills in the work-
place and this make them valued and remain involved in
the work and increases employee engagement (J. Swami-
nathan and U Gowrishankar, 2010).
3. Advantages of Employee Engagement:
CIPD (2006) research shows that engaged employees per-
form better than others and remain in the organization.
They have more positive attitudes and emotions towards
their work and gain more job satisfaction. According to the
Foundation Trust Network (2013), organizations which have
engaged employees bring significant benefits including
increase of productivity, increase in quality work, greater
innovation and better customer service. When employees
are highly engaged with their organization, they form an
emotional connection with the company and this affects
their attitude towards both their co-workers and clients of
the company and also improves customer satisfaction and
service levels ( Sahoo, C.K. and Mishra, S., 2012). Engaged
employees are more loyal, work harder, stay longer and
perform better in the companies (Micro Edge, 2013). Thus
an organization’s capacity to manage employee engage-
ment is linked to its ability to reach high organizational
performance and superior business results. Wright, T. A.,
& Cropanzano, R. (2000) also claim that highly engaged
employees will constantly deliver productive works beyond
expectations. According to them some of the advantages
of engaged employees are as follows:
(a) 	Engaged employees will stay in the company and con-
tribute to business success.
(b) 	They will perform better and are more motivated.
(c) 	Employee engagement and profitability are highly re-
lated.
(d) 	Increases commitment and trust of the employees in
the organization.
(e) 	A sense of loyalty is created among the employees in
a competitive environment.
(f) 	 It boosts business growth.
Conclusions:
Employee engagement plays an important role in organi-
zational performances and improving business outcomes.
When organizations have a proper understanding of em-
ployee engagement and the factors leading to high em-
ployee engagement, they will be able to achieve higher
level of organizational performances. Therefore, employee
engagement is an inevitable factor for the organizations
to ensure organizational success in the contemporary busi-
ness.
References:
1.	 Chartered institute of personnel and development (2006). How engaged
are British employees.london:cipd. Retrieved from http://www.cipd.
co.uk/binaries/howengbritemps-sr.pdf.
2.	 Concelman, James (2005), “Referee Bosses give Leaders a Bad Rep”,
Employment Relations Today, 32(1): 48-52.
3.	 Erickson, T. J. and Gratton, L. (2007), “What it means to work here”,
Harvard Business Review, 85(3): 104-112.
4.	 Foundation Trust Unit. (2013). Realizing the benefits of employee en-
gagement. Retrieved from http://www.nhsproviders.org/resource-library/
realising-the-benefits-of-employee-engagement/employee-engagement.
pdf.
5.	 Gibbons, J. M. (2006). Employee engagement: A review of current re-
search and its implications. Conference Board.
6.	 Swaminathan, J., & Gowrishankar, U. (2010). Employee engagement
practices in private hospitals: a cross sectional study in mayiladuthurai
(No. 39769). University Library of Munich, Germany.
7.	 Micro Edge. (2013). Why should you care about employee engage-
ment? Retrived from http://secure.microedge.com/rs/microedge/im-
ages/Why_Should_You_Care_About_Employee_Engagement.pdf.
8.	 Molinaro, V., & Weiss, D. (2005). Driving employee engagement. The
Banff Centre: Leadership Development.
9.	 Robinson, D., Perryman, S., & Hayday, S. (2004). The drivers of employ-
ee engagement. Report-Institute for Employment Studies.
10.	 Sahoo, C.K. and Mishra, S. (2012). A Framework towards Employee En-
gagement: The PSU Experience”, ASCI Journal of Management, 42 (1):
92-110).
11.	 Perrin, T. (2003). The 2003 Towers Perrin talent report: Working today:
Understanding what drives employee engagement.
12.	 Tower Watson. (2011). Employee Engagement and the Transformation
of the Health Care Industry.
13.	 Wright, T. A., & Cropanzano, R. (2000). Psychological well-being and job
satisfaction as predictors of job performance. Journal of occupational
health psychology, 5(1), 84.

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Employee Enagagement : An Inevitable Factor To Organizational Success in The Contemporary Business

  • 1. INDIAN JOURNAL OF APPLIED RESEARCH X 89 Volume : 6 | Issue : 6 | June 2016 | ISSN - 2249-555X | IF : 3.919 | IC Value : 74.50Research Paper Employee Engagement: An Inevitable Factor To Organizational Success in The Contemporary Business Dr. Amarendra Pratap Singh Jianguanglung Dangmei Professor and Head, Department of Business Management Indira Gandhi Tribal University, (IGNTU) Amarkantak (M.P) Research Scholar, Department of Business Management Indira Gandhi Tribal University, (IGNTU) Amarkantak (M.P) Management Keywords Employee Engagement, Organizational growth, Organizational performances, Contemporary Business. ABSTRACT In the changing business environment due to competition and managing changes, organizations face dif- ficulties to maintain organizational success. However, the employee engagement is a concept which if implemented properly can make a lot of difference in the organization. Employee engagement is defined as the posi- tive attitude of an employee towards the organization and its value which exert to greater discretionary effort to ensure organizational success and sustainability. It is a simple fact that the engagement of employees towards their work and organization can make a huge difference for the growth and survival of the organization. Almost all of the companies now explore the possibilities for adopting employee engagement as a strategy for organizational growth and success as employee engagement is highly associated with organizational performances. It is essential to understand employee engagement as engaged employees who are fully involved and committed to their works are willing to go the extra mile for their organization to ensure its success. This paper attempts to throw light on the nature of employee engage- ment to ensure organizational success in the contemporary business. Introduction Employee engagement is a concept which if implemented properly can make a lot of difference in the organization. It is a simple fact that the engagement of employees to- wards their work and organization can make a huge differ- ence for the growth and survival of the organization. In the changing business environment due to high competi- tion, organizations have changed their strategy to adopt employee engagement as employee engagement and or- ganizational performances are highly associated (Concel- man, 2005). Almost all of the companies now explore for adopting employee engagement as a strategy for organi- zational success. According to Erickson (2004), the best ways to shape the behavior of an employee towards work is to improve employee engagement. Thus, understanding the employee engagement will play an important role for better performances for sustainability and organizational success. 1. Employee Engagement: Employee engagement is defined as the positive attitude by the employee towards the organization and its value (Robinson et al., 2004). Engaged employees have high emotional connection for the organization which exert to greater discretionary effort towards the organizational suc- cess (Gibbon, 2006). They are aware of business context, and cooperate with fellow worker to increase performance within the job for the benefit of the organization. Employ- ee engagement is thus the intensity of commitment and discretionary effort of employees towards their organiza- tion and its values. 2. Key Drivers of Employee Engagement: It is essential to understand the drivers of employee en- gagement which make employees fully involved and com- mitted to their works, care about their organization are willing to go the extra mile for their organization to en- sure its success (Sahoo, C.K. and Mishra, S. 2012). Many researchers have identified factors leading to employee engagement and those important key drivers of employee engagement in the 21st century are as follows: (a) Leadership: Leadership is one of the most important non-monetary drivers of performance and can make em- ployees engaged to give their best to the organization (Momilaro et al, 2005). Leadership is extremely important for increasing the level of employee engagement (Sahoo C.K. and Mishra, S., 2012). (b) Employee Well-being: If the organization considers the well-being of the employees, they will have an emotional attachment with the organization which leads to engage- ment. It is considered as the top most driver of engage- ment in the study of 35,000 employees in U.S companies (Tower Perrin, 2003). (c) Communication: Communication is crucial to lead em- ployees to engagement and employees are engaged when they have the opportunity to share their views and opin- ions upwards and keeping them informed about what is going on in the organization (CIPD, 2006 & Sahoo C.K. and Mishra, S., 2012) (d) Pay & Benefits: A company that has proper pay sys- tem will motivate the employees to work in the organiza- tion and it has been suggested that with certain benefits and compensation boost the level of employee engage- ment in the organization (Aon Hewitt, 2012). (e) Rewards and Recognition: Maslach et al. (2001) con- sider that rewards and recognition are important for en- gagement. Recognition is crucial for employee engage- ment as 72% of 568 respondents consider it as most impactful employee engagement driver (Harvard Business Review, 2013). (f) Career Advancement: Many researchers have pointed out that organization that provides the opportunities of bright future career plan to the employees will produce engagement. And it has been demonstrated that career
  • 2. 90 X INDIAN JOURNAL OF APPLIED RESEARCH Volume : 6 | Issue : 6 | June 2016 | ISSN - 2249-555X | IF : 3.919 | IC Value : 74.50Research Paper development influences employee engagement and even retaining the most talented employees in the organization (Concelman, 2005). (g) Working Environment: Organizations that provide a good working environment and supportive system that gives what they need to perform consistently at their peak drive engagement successfully (Tower Watson, 2011). (h) Living a Balanced life: Organizations that build cul- tures that give importance to work balance and support employees to achieve life balance achieved engaged em- ployees (Molinaro V. & Weiss D. (2005). (i) Decision-Making Authority: Perrin, T. (2003) also found that decision- making authority is an important driver of employee engagement and proper sharing of power with employees through participative decision making will in- duce feeling of sense of belongingness thereby increasing their engagement in realizing it (Sahoo, C.K. and Mishra, S. (2012). Organizations that empower employees to take de- cisions in the their job responsibilities will create employee engagement (Swaminathan, J., & Gowrishankar, U., 2010). (j) Training and Development: Skills developments through training and development make employees dis- charge their responsibilities and also make them prepare for future challenges that develop new skills in the work- place and this make them valued and remain involved in the work and increases employee engagement (J. Swami- nathan and U Gowrishankar, 2010). 3. Advantages of Employee Engagement: CIPD (2006) research shows that engaged employees per- form better than others and remain in the organization. They have more positive attitudes and emotions towards their work and gain more job satisfaction. According to the Foundation Trust Network (2013), organizations which have engaged employees bring significant benefits including increase of productivity, increase in quality work, greater innovation and better customer service. When employees are highly engaged with their organization, they form an emotional connection with the company and this affects their attitude towards both their co-workers and clients of the company and also improves customer satisfaction and service levels ( Sahoo, C.K. and Mishra, S., 2012). Engaged employees are more loyal, work harder, stay longer and perform better in the companies (Micro Edge, 2013). Thus an organization’s capacity to manage employee engage- ment is linked to its ability to reach high organizational performance and superior business results. Wright, T. A., & Cropanzano, R. (2000) also claim that highly engaged employees will constantly deliver productive works beyond expectations. According to them some of the advantages of engaged employees are as follows: (a) Engaged employees will stay in the company and con- tribute to business success. (b) They will perform better and are more motivated. (c) Employee engagement and profitability are highly re- lated. (d) Increases commitment and trust of the employees in the organization. (e) A sense of loyalty is created among the employees in a competitive environment. (f) It boosts business growth. Conclusions: Employee engagement plays an important role in organi- zational performances and improving business outcomes. When organizations have a proper understanding of em- ployee engagement and the factors leading to high em- ployee engagement, they will be able to achieve higher level of organizational performances. Therefore, employee engagement is an inevitable factor for the organizations to ensure organizational success in the contemporary busi- ness. References: 1. Chartered institute of personnel and development (2006). How engaged are British employees.london:cipd. Retrieved from http://www.cipd. co.uk/binaries/howengbritemps-sr.pdf. 2. Concelman, James (2005), “Referee Bosses give Leaders a Bad Rep”, Employment Relations Today, 32(1): 48-52. 3. Erickson, T. J. and Gratton, L. (2007), “What it means to work here”, Harvard Business Review, 85(3): 104-112. 4. Foundation Trust Unit. (2013). Realizing the benefits of employee en- gagement. Retrieved from http://www.nhsproviders.org/resource-library/ realising-the-benefits-of-employee-engagement/employee-engagement. pdf. 5. Gibbons, J. M. (2006). Employee engagement: A review of current re- search and its implications. Conference Board. 6. Swaminathan, J., & Gowrishankar, U. (2010). Employee engagement practices in private hospitals: a cross sectional study in mayiladuthurai (No. 39769). University Library of Munich, Germany. 7. Micro Edge. (2013). Why should you care about employee engage- ment? Retrived from http://secure.microedge.com/rs/microedge/im- ages/Why_Should_You_Care_About_Employee_Engagement.pdf. 8. Molinaro, V., & Weiss, D. (2005). Driving employee engagement. The Banff Centre: Leadership Development. 9. Robinson, D., Perryman, S., & Hayday, S. (2004). The drivers of employ- ee engagement. Report-Institute for Employment Studies. 10. Sahoo, C.K. and Mishra, S. (2012). A Framework towards Employee En- gagement: The PSU Experience”, ASCI Journal of Management, 42 (1): 92-110). 11. Perrin, T. (2003). The 2003 Towers Perrin talent report: Working today: Understanding what drives employee engagement. 12. Tower Watson. (2011). Employee Engagement and the Transformation of the Health Care Industry. 13. Wright, T. A., & Cropanzano, R. (2000). Psychological well-being and job satisfaction as predictors of job performance. Journal of occupational health psychology, 5(1), 84.