Employee engagement has been perceived as a significant development in providing greater commitment and energy benefiting both the organization and the employee. With reference to the literature, critically evaluate the impact of employee engagement on organizational performance.
An unpredictable and challenging market and economic condition has forced many organizations to increase their level of competition. It forces them to develop competitive advantage through employee as valued resourced of organization. An organization needs engaged employee that not only satisfied but also willing to contribute that will benefit the success of organization and themselves. This essay aims to evaluate impact of employee engagement on organizational performance as an important factor of business success.
Kahn (1990) defines personal engagement as “the harnessing of organization members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performance.” Saks (2006) defines engagement as a “distinct and unique construct that consists of cognitive, emotional, and behavioural components that are associated with individual role performance. Furthermore, engagement is distinguishable from several related constructs, most notably organizational commitment, organizational citizenship behaviour, and job involvement.” Employee engagement has similarities with commitment and Organizational Citizen Behaviour (COB) concepts. Robinson, Perryman, and Hayday (2004) distinguished that employee engagement is the result of two-way mutual relationship between employee and organization and engaged employee are expected to have awareness of business context even though it similar with those concepts. In summary, employee engagement is two-way mutual relationship between employee and organization where an engaged employee presents positive psychological factors when performing their job such as enthusiastic and passion of doing his or her job, committed to the organization’s goals and willing to contribute for the success of the company. Markos and Sridevi (2010) state that full engagement can be obtained by aligning maximum job satisfaction and maximum job contribution because engagement is about passion of doing job and commitment to the organization. Job satisfaction is different with engagement because an employee who has job satisfaction does not always mean give maximum job contribution.
Employee Engagement on Organizational Performance
Organization should consider investing in engagement because many studies show positive relationship between engagement and the impact of organizational performance results. “ Studies have found positive relationship between employee engagement and organizational performance outcomes: employee retention, productivity, profitability, customer loyalty and safety. Researches also indicate that the more engaged employees are, the more likely their employer is to exceed the industry average in its revenue growth. Employee engagement is found to be higher in double-digit growth companies.” (Markos and Sridevi, 2010). They also argue that employees who are not engaged are likely to waste their effort and talent on unimportant tasks, don’t have full commitment and don’t spend enough time for important tasks that will make change in organization. Baumruk and Gorman (2006) defined three general consistent behaviors that showed by engaged employee to improve organizational performance and result: 1. Say, employee support and say positively about the organization to co-workers and customers. 2. Stay, employee has commitment to be part in organization and help to achieve its goal despite work in other organization. 3. Strive, employee is willing to work hard and gives time and effort to contribute for the success of the company. Aon Hewitt (2014) conducted research to...
References: Aon Hewitt. (2014). 2014 Trends in Global Employee Engagement. [Online] Available from: http://www.aon.com/attachments/human-capital-consulting/2014-trends-in-global-employee-engagement-report.pdf. [Accessed: 3 March 2015].
Baumruk, R. (2006) Why Managers are Crucial to Increasing Engagement: Identifying Steps Managers Can Take to Engage Their Workforce. Strategic HR Review. [Online] 5. p. 24-27. Available from: https://www.insala.com/employee-engagement/why-managers-are-crucial-to-increasing-engagement.pdf. [Accessed: 2 March 2015].
Hay Group. (2010). Leadership Drives Retail Success for Arcadia Group’s Dorothy Perkins.[Online] Available from: http://www.haygroup.com/downloads/uk/misc/ssbyl_dp_singles_mc.pdf. [Accessed: 3 March 2015].
Kahn, W. A. (1990) Psychological Conditions of Personal Engagement and Disengagement at Work. Academy of Management Journal. [Online] 33. p. 692-724. Available from: http://www.jstor.org.ezproxye.bham.ac.uk/stable/256287?seq=1#page_scan_tab_contents. [Accessed: 1 March 2015].
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Lockwood, N. R. (2007) Leveraging Employee Engagement for Competitive Advantage: HR’s Strategic Role. Society for Human Resource Management. [Online] Available from: http://www.shrm.org/research/articles/articles/documents/07marresearchquarterly.pdf. [Accessed: 3 March 2015].
Markos, M. and Sridevi, M. S. (2010) Employee Engagement: The Key to Improving Performance. International Journal of Business and Management. [Online] 5. p. 89-96. Available from: http://www.myopinionatbesix.com/besixsurvey/media/besix-survey/pdf/4.-employee-engagement-the-key-to-improving-performance.pdf. [Accessed: 2 March 2015].
Rayton, B., Dodge, T. and D’Analeze, G. (2012) The Evidence: Employee Engagement Task Force “Nailing the Evidence” Workgroup. Engage for Success. [Online] Available from: http://www.engageforsuccess.org/wp-content/uploads/2012/09/The-Evidence.pdf. [Accessed: 2 March 2015].
Robinson, D., Perryman S., and Hayday S. (2004) The Drivers of Employee Engagement Report 408. Brighton: institute for Employment Studies.
Saks, A. M. (2006) Antecedents and Consequences of employee engagement. Journal of Managerial Psychology. [Online] 21. p. 600-619. Available from: http://www.emeraldinsight.com.ezproxyd.bham.ac.uk/doi/pdfplus/10.1108/02683940610690169. [Accessed: 1 March 2015].
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