Employee Engagement Related to Employees Performance

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1 Employee Engagement Related to Employees Performance Dr. K. Srinivasa Krishna Professor, Aditya Global Business School, Surampalem, Kakinada Mr. Y.Suryanarayana Murthy Asst. Professor, Aditya Global Business School, Surampalem, Kakinada Abstract: Employee engagement has emerged as a critical driver of business success in today s competitive market place. Further, employee engagement can be a deciding factor in organizational success. The employee engagement significantly affecting not only employee retention, productivity, loyalty but also it is a key link to the employees performance, customer satisfaction, company reputation and overall stake holder s value. Thus, to gain a competitive edge, organizations are turning to HR to set the agenda for employee engagement and commitment. The challenge today is not just retaining talented people, but fully engaging them, capturing their minds and hearts at each stage of their work lives. As competition intensified, organization realizes the significance of employees to sustain and grow in knowledgeable economy. An attempt has been made with the help of this paper to recognize how well employee engagement taking place in an organization for employees performance at ANGEL BROKING Limited. This study is aimed to throw light on key areas to be focused on by the employers to motivate human capital in their enterprises. Keywords: Employee Engagement, Employee Performance, Angel Broking Limited, Financial Services, Reputation. INTRODUCTION India has emerged as one of the fastest growing economies in the world having recorded an annual growth of more than 8% over the last few years. These observations highlight the crucial role played by the financial sector in promoting and sustaining the economic growth in our country. Managers agree that modern business demands higher productivity and more efficiency, than in previous times. Companies are trying to increase their performance in order to place their company ahead of the competitors. At some point, satisfied employees, content with their work experience, was a good formula for success, as a satisfied employee, who wanted to stay with a company, contributed to the workforce stability and productivity (Sanchez and McCauley, 2006). But those times have changed. Nowadays, the business environment is global and competitive and simply satisfied and stable employees are not enough to bring necessary business results. Satisfied employees may just meet the work demands, but this will not lead to higher performance. In order to compete effectively, employers need to go beyond satisfaction - employers must do their best to inspire their employees to apply their full potential and capabilities to their work, if they do not, part of the valuable employees resources remains unavailable for the company. Therefore, modern organizations expect their employees to be full of enthusiasm and show initiative at work, they want them to take responsibility for their own development, strive for high quality and performance, be energetic and dedicated to what they do in other words companies want their employees be engagedan employee engagement measures employees' collective level of engagement at their organization. Employee engagement is an employee's commitment to, involvement with, emotional attachment to, and satisfaction with their work and organization. Employee engagement drives business outcomes, such as productivity, performance, profitability, and other desirable behavior results in the workplace (such as retention, pride, etc.). Angel Group of Companies, Hyderabad was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognized the opportunity offered by the stock market to serve individual investors. Thus India s first retail-focused stockbroking house was established in 1987 and in recent years has expended to health care and financial services. REVIEW OF THE LITERATURE This study focused on the employees performance based on employee engagement activities in an organization. According to the review of literature, it explains the impact of the employee engagement activities directed towards the psychological attributes of the employees in their performance enhancement 153

2 both at individual level and organizational level.employee engagement and psychological well-being are different but related constructs. It has been proved by the researchers that the engagement of employees is the result of psychological well-being. As per Ivan T. Robertson et al, it should now be clear that psychological well-being is important for employees. In fact it may be even more important for employers and organizations. Explaining the reasons he said, people with higher levels of psychological well-being learn and problem solve more effectively, are more enthusiastic about change, related to others more positively, and accept change more rapidly. It is difficult to think of another set of characteristics, apart from job-specific skills, that are more important to an organization s success. As cited by J. Bhatnagar and Soumendu Biswas, more recently employee engagement has been related to building a firms competitive advantage. Employee engagement in fact can make or break the business bottom line (Lockwood 2006), Martel (2003:30, 42) is of the opinion that in order to obtain high performance in postindustrial, intangible work that demands innovation, flexibility, and speed, employers need to engage their employees. They say that objectives are more easily met when employee are engaged are more likely to fall short when they are not. They further said that in a study they proposed linkage between firm performance and employee engagement, but in a reverse feedback loop. This entails that those firms which are finically robust will have a higher employee engagement score. The above studies reveal that performance and financial status of an organization is directly related to the engagement of employees of that organization. Practitioners and academics tend to agree that the consequences of employee engagement are positive (Saks 2006). As cited by Sandeep Kular at el, there is a general belief that there is a connection between employee engagement and business results; a meta-analysis conducted by Harter et al (2002:272) confirms this connection. Kahn (1990) nor May et al (2004) included outcomes in their studies, Kahn (1992) proposed that high levels of engagement lead to both positive outcomes for individuals, (eg quality of people s work and their own experiences of doing that work), as well as positive organizational-level outcomes (e.g. the growth and productivity of organizations). Most often employee engagement has been defined as emotional and intellectual commitment to the organization (Baumruk, 2004; Richman, 2006; and Shaw, 2005) or the amount of discretionary effort exhibited by employees in their job (Frank et al. 2004). Robinson et al. (2004) defined engagement similar to the established constructs such as organizational commitment and organizational citizenship behavior (OCB). It is a positive attitude held by the employee towards the organization and its values. An engaged employee is aware of the business context and works with colleagues to improve performance within the job for the benefit of the organization. According to Maslach et al. (2001), six areas of work-life lead to either burnout or engagement: workload, control, rewards and recognition, community and social support, perceived fairness and values. They argue that job engagement is associated with a sustainable workload, feelings of choice and control, appropriate recognition and reward, a supportive work community, fairness and justice, and meaningful and valued work. Like burnout, engagement is expected to mediate the link between these six work-life factors and various work outcomes. Corporate leadership Council (2004) defined employee engagement as the extent to which employees commit to something or someone in their organization, how hard they work and how long they stay as a result of that commitment. It is a desirable condition, where an organizational connotes involvement, commitment, passion, enthusiasm, focused effort, and energy among employees. According to the words of (Erickson, 2005) employee engagement has both attitudinal and behavioral components Engagement is the measure of an employee s emotional and intellectual commitment to their organization and its success. Brown (2006) viewed engagement as a progressive combination of satisfaction, motivation, commitment and advocacy resulting from employees movement up the engagement pyramid. Employee engagement can be considered as cognitive, emotional and behavioral. Cognitive engagement refers to employees beliefs about the company, its leaders and the workplace culture. The emotional aspect is how employees feel about the 154

3 company, the leaders and their colleagues. The behavioral factor is the value added component reflected in the amount of effort employees put into their work (Lockwood, 2007). Mone and London (2010) defined employee engagement is a condition of employee who feels involved, committed, passionate, and empowered and demonstrates those feelings in work behavior. It is thus the level of commitment and involvement an employee has towards their organization and its values. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. Thus, employee engagement is a barometer that determines the association of a person with the organization. OBJECTIVES OF THE STUDY 1. The study is intended to examine the perception of the employees in engaging themselves in their jobs. 2. To analyze the theoretical and empirical aspects in fostering performance level of the employees in ANGEL BROKING LTD, in some parts of Vijayawada, Rajahmundry, Guntur, Warangal, Visakhapatnam and Hyderabad 3. The key issues in driving satisfaction and environment of engagement in the workplace is also attempted. METHODOLOGY Survey method through structured questionnaire was adopted for the study. The research instrument used for this study is questionnaire. It was designed to measure engagement, employee performance, teamwork and leadership, relation with top management, work culture and compensation of the workforce. Data was collected from 441 employees of the ANGEL BROKING LTD from South India mainly in some parts of Vijayawada, Rajahmundry, Guntur, Warangal, Visakhapatnam and Hyderabad working in different functional areas like Equity Dealers, Commodity Dealers and sales, Relationship Managers, Branch Mangers and administration employees. Convenience sampling was adopted taking into account availability and approachability of employees for the purpose of data collection. DATA ANALYSIS AND INTERPRETATION Demographic characteristics based on the sample of employees are given in Annexure-I. TABLE-1: PERFORMANCE EVALUATION ANDENGAGEMENT OF THE RESPONDENTS Particulars Mean F Value P Value Level of significance Satisfactory Very Good * Significant Excellent Source: Primary data, ** Significant at 1% level, * Significant at 5% level. The above table shows that the employee engagement activities related to the employees performance shows that the most of the employees in the organizations are of satisfactory standards and are putting the performance measures to a certain benchmark and not able to attain the established standards of the organization where as in contrast that the remaining percentage of the employees are matching up to the standards due to the annual performance appraisal activities where in the given activities are performed in more excellent manner. TABLE-2: EXPERIENCE IN PRES ENT ORGANISATION ANDENGAGEMENT OF THE RESPONDENTS Particulars Mean F Value P Value Level of significance Up to 5 years years 10 years * Significant More than 10 years Source: Primary data, ** Significant at 1% level, * Significant at 5% level. 155

4 The above table reveals that there are high levels of significance with regard to the perceptions of employees towards engagement based on total work experience and also experience in the same organization. However, those with more than ten years experience seem to be more committed towards the achievement of organizational goals. It was observed that the sample population does not significantly differ in their perceptions towards major components of engagement when classified on gender basis. However, male employees show better perceptions of engagement and are psychologically more favored towards their work organizations compared to female employees. It was observed that there is a gradual increase in the level of engagement from the employee level to senior management and there are no significant differences in their perceptions of engagement in the job and irrespective of employment position all are having high level of positive engagement towards their organization. It was observed that with advancement of age the employees perception towards the organization shows a positive and higher level of engagement and also that there are no significant differences in their engagement levels based on age. THE BENEFITS OF EMPLOYEES ENGAGEMENT 1. Employee engagement and psychological well-being are different but related constructs. It has been proved by the researchers that the engagement of employees is the result of psychological well-being. 2. Positive impact and implications of engagement:1.higher productivity 2. Increased profitability 3.Lower levels of sick leave use 4. Fewer complaints of unfair treatment 5. Less work time missed due to workplace injury or illness -6.Lower levels of attrition 7. Higher levels of customer satisfaction 3. People with higher levels of psychological well-being learn and problem solve more effectively, are more enthusiastic about change, related to others more positively, and accept change more rapidly. It is difficult to think of another set of characteristics, apart from job-specific skills, that are more important to an organization s success. 4. To obtain high performance in postindustrial, intangible work that demands innovation, flexibility, and speed, employers need to engage their employees. 5. Engagement is an individual-level construct and if it does lead to business results, it must first impact individual-level outcomes. 6. High levels of engagement lead to both positive outcomes for individuals, (e.g. quality of people s work and their own experiences of doing that work), as well as positive organizational-level outcomes (e.g. the growth and productivity of organizations). CONCLUSION This study focused on measuring employee engagement in ANGEL BROKING LIMITED inin some parts of Vijayawada, Rajahmundry, Guntur, Warangal, Visakhapatnam and Hyderabad. It was observed that an employee, may be male or female, having more than 10 years of total work experience and more than 10 years of work experience in present organization irrespective of the age and level of management enjoy more level of employee engagement. Findings suggest people seek more meaning in their day-to-day work than they do in their personal lives. This implies employers should be seeking to make work meaningful by finding out what matters to their employees, especially since evidence suggests that meaningfulness impacts not only on the individual, but also on the bottom line. Research has also suggested a connection between employee engagement and business results. 156

5 Annexure: DEMOGRAPHIC VARIABLES OF THE EMPLOYEES No. of No. Particulars Respondents 1. GENDER Percentages Male Female TOTAL WORK EXPERIENCE years years More than 10 years PERFORMANCE EVALUATION IN THE PRESENT ORGANISATION Satisfactory Good Excellent POSITION IN THE PRESENT ORGANISATION Top management Middle management Employees AGE Up to 25 years years to 40 years years to 50 years More than 50 years REFERENCES 1. Bakker AB, Schaufeli WB, Leiter MP, Taris TW (2008). Work engagement: an emerging concept in occupational health psychology. Work and Stress, vol 22, pp Boorman S (2009). NHS Staff Health and Well-being Final report. London: Department of Health. Available at (accessed on 22 February 2012). 3. Burke RJ, Greenglass ER (2001). Hospital restructuring, work family conflict and psychological burnout among nursing staff. Psychology and Health, vol 16, pp Bakker AB (2011). An evidence-based model of work engagement. CurrentDirections in Psychological Science, vol 20, pp Bakker AB, Bal PM (2010). Weekly work engagement and performance: a study among starting teachers. Journal of Occupational and OrganizationalPsychology, vol 83, pp Bakker AB, Demerouti E, Verbeke W (2004). Using the job demands resources model to predict burnout and performance. Human ResourceManagement, vol 43, pp

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