Impact of Employee Engagement on Job Satisfaction at Ultratech Cement Limited-HCW

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1 Impact of Employee Engagement on Job Satisfaction at Ultratech Cement Limited-HCW Roheel Jain, Student, Department of Management Studies, Christ University Bengaluru, India Dr. Balu.L, Research Supervisor, Bharathiar University, Coimbatore Assistant Professor, Department of Management studies, Christ University Bengaluru, India Abstract Employee Engagement is a widely discussed topic across the globe and is often studied with its linkages to retention of employees, firm and individual performance, job involvement, employee motivation and job satisfaction. This research paper seeks to find the impact of employee engagement on job satisfaction at Ultratech Cement Ltd- HCW. The research was conducted at Ultratech Cement plant at Hirmi. For the purpose for research primary data was collected by conducting a survey. The research was conducted on staff level employees from across 23 departments in the unit. The sample size was 136 which was chosen by convenience random sampling. The findings of the study showed that factors under employee engagement such as-basic needs, management support, teamwork and growth have a great impact on satisfaction level of the employees. Keywords- Employee Engagement, Job Satisfaction, Job Involvement, Manufacturing Sector. Introduction- Employee Engagement is defined as"an employee's involvement with, commitment to, and satisfaction with work. Employee engagement is a part of employee retention."(schmidt & Harter, 1993).(Locke, 1976)Defines job satisfaction as "a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences". With increasing diversity in workforce and companies entering into new markets, it has become very important for the organizations to keep its work force engaged so as to retain the top talent. If the employees are engaged they tend to be satisfied and motivated which in turn results in retention of top talents and also it provides a competitive edge to the organizations. Employee engagement has been discussed by many researcher with its linkages to job satisfaction. An employee who is satisfied with his job might not be engaged but on the contrary an employee who is engaged and who believes in the organizational values will in most cases be satisfied with his or her job. Employee engagement is more of transformational concept which includes autonomy, growth, impact and connection whereas job satisfaction is transactional in nature. Organizations who have highly engaged employees tend to have higher productivity, satisfaction levels and employee retention Literature Review (Kahn, 1990) The first definition of employee engagement was given by William Kahn. He defined personnel 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 performances. In this definition, the physical aspect refers to the employees physical efforts to achieve their assigned roles. The cognitive aspect 45 Roheel Jain, Dr. Balu.L

2 refers to the notion of employee about its organization and working conditions. The emotional aspect refers to the employees feelings and attitude towards organization and its stakeholders. (Schmidt & Harter, 1993) Schmidt et al 1993 defines engagement as a modernized version of job satisfaction, which is basically an employee's involvement with, commitment to and satisfaction with work. Here the commitment means the willingness of an employee to stay with the organization and work beyond the defined roles. (Gallup Consultancy, n.d.) Engagement as a core Strategy Gallup Consultancy which comes under world s top most consultancy conducted a research which stated that employee engagement has direct impact on business results. It categorizes employees as engaged and disengaged employees and states that engaged employees tend to have creative minds, they are employees with high level of commitment and are clear about organization goals. These employees have clear picture of what is expected from them and they are generally high performers. (Hoppock, 1935) A study was conducted by Happock during the year school year, primary dat was collected by conducting survey on job satisfaction wherein the sample size was 500 teachers who belonged to 51 communities in Northeastern United States. The results suggested that the most satisfied teachers were older and they displayed higher levels of general emotional adjustment, and reported having higher social status, and better interpersonal relationships with supervisors and coworkers. (Locke, 1976) Locke (1976), defines job satisfaction as "a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences". In his study he identifies various job factors which affect the satisfaction level of the employees. Various job related factors such as Work, Pay, Promotions, Peers, Supervisors, Top Leadership, Benefits and policies affect the satisfaction level of employees. Apart from this various individual attributes of the individual play distinctive role on job satisfaction of the employee. (Thiagarajan & Renugadevi, 2011) Thiagarajan & Renugadevi conducted research on An empirical investigation on Employee Engagement Practices in Indian BPO Industries. The research article emphasizes on the employee engagement related factors in BPO industry in India. The researches have conducted interviews and collected data of 126 executives. This research article connects the dot between employee engagement, career development and employee performance. It concluded that there is a need to educate our future leaders on engagement, as it has a huge significance on employee satisfaction and performance. (Malavika Desai, Majumdar, & Prabhu, 2010) This research article takes into consideration two different industries- manufacturing and IT industry and measures employee engagement in these industries. The purpose of this paper is to find the varying level of employee engagement in the two different industries. 50 employees from car manufacturing unit and 50 employees form an IT firm located in Bengaluru was taken as sample for the purpose of research. The findings of the research were that degree of employee engagement was comparatively high in manufacturing unit than the IT firm. (Bhavani, Sharavan, & Arpitha, 2015) Bhavani et al (2015) conducted research at Automotive Axles ltd. To study the effectiveness of employee engagement in an automobile industry. The purpose of the research was to identify the link between the employee satisfaction and employee engagement level. Primary data of 50 employees was collected through a structured questionnaire and SPSS test were used to analyze the data. The study concludes that employee engagement plays a vital role in increasing job satisfaction and organization productivity. (Tejpal, ) Poornima Tejpal conducted a research on whether there is increase in job satisfaction level through employee engagement. The three dimensions of employee engagement are discussed in the research i.e. vigor, 46 Roheel Jain, Dr. Balu.L

3 dedication and absorption. Vigor is defined as employees effort and enthusiasm, dedication is employees commitment to his/her work and absorption is acquiring or being engrossed into the work. The purpose of the study was to find the impact the job satisfaction has through these three dimensions of employee engagement. The sample size was 96 managers who represented 4 different private sector banks. Descriptive Statistics was used to analyze the data. (Lu, Allan Cheng Chieh Lu, Gursoy, & Neale, 2014) The purpose of this study was to find the impact on various work related variables such as work engagement, job satisfaction and turnover intensions employees position because of employee position. The research data was collected from 29 different hotels and one way ANNOVA test was used as a tool for data analysis. The findings of the research show that supervisors have higher work engagement than line managers whereas the job satisfaction level did not vary across the two different positions. (Abraham, 2012) This research article studies the various factors that influence employee satisfaction among employees in the company. The researcher through a job satisfaction survey helps the organization in adapting an employee engagement program. It states that employees are highly engaged when they have positive attitude towards organization and are committed to the organization. A sample size of 2500 permanent employees of UAE Exchange and Financial Services Ltd located in Cochin was considered for data collection. 150 employee were selected using systematic sampling. Pearson correlation and regression analysis were used as tools for analyzing the data. Research Methodology Title- Impact of Job Satisfaction on Employee Engagement at Ultratech Unit- HCW Statement of the Problem: There has always been ambiguity as there is no clear definition of employee engagement, the factors varies from organization to organization. The current study signifies the impact of employee engagement on job satisfaction in manufacturing company. Most of the studies talks about the relationship of engagement with productivity but this study focus primarily on employee engagements relation with job satisfaction. Aim of the Project: To determine the key employee engagement factors. To determine the factors which are important for job satisfaction but are missing. Objectives of the study To study the employee engagement of staff level of employees working in manufacturing company. To study the perception of employees with respect to the Employee Engagement practices in the organization. To determine the relation between employee engagement and job satisfaction. Research Hypotheses: H 0 - There is no relationship between job satisfaction and employee engagement H 1 There is a relationship between job satisfaction and employee engagement Significance/Contribution to the Discipline: There has been several researches on employee engagement. There have been many notable work in the field of employee engagement such as- Gallup Model, Ten C s of engagement by Sejits and Crim (2006). Previous 47 Roheel Jain, Dr. Balu.L

4 researches have showed that high levels of employee engagement have a significant and positive impact on job satisfaction. The current study aims at analyzing the factors of employee engagement with respect to manufacturing industries. Conceptual Framework: Dependent variable- Job Satisfaction Independent Variable- Employee Engagement Population and Sampling Techniques- There are total 274 employees who fall under the category of officers and above, it is the population taken into consideration for research out of which sample size of 136 employees are selected on the basis of nonprobability convenience sampling and snowball sampling technique. Data Collection Method The data for the study is collected by conducting two standard questionnaires on the two variables employee engagement and job satisfaction. The employee engagement questionnaire is based on Gallup s 12 model questionnaire (Gallup Consultancy, n.d.). Job satisfaction questionnaire is based on job satisfaction survey by Prof Paul E. Spector (Spector, 1985). Statistical Tool for Analysis The study uses descriptive statistics for the analysis of data wherein Pearson s Correlation is used as a tool to find the association between the two variables and Regression analysis is used as a tool to study the impact of the two variables on each other. SPSS (Version 22) software is used for running these statistical tests. Limitations: Only one unit is taken into consideration for deriving at conclusions. Study is limited to only staff members. Data Analysis & Interpretation Descriptive Analysis Valid Frequency Percent Valid Percent Cumulative Percent & above Total The above table represents the age group of employees who had taken the surveys. Majority of the people lie between the age group of years which is about 66.2%, whereas age group contributes only 11.8% of the sample size. There are a total of 23 departments which have been taken into consideration for the surveys. The maximum contribution is from Mechanical-Post department which forms 10.3% of the population whereas Land Matters department contributes the least with 0.7% of the population. 48 Roheel Jain, Dr. Balu.L

5 Pearson s Correlation As per the table above, there is correlation of positive between the two variables Employee Engagement (Average) and Job Satisfaction (Average), the p value is which is less than 0.05, thus there is high level of significance. Correlation is significant at the 0.01 level (2-tailed). Thus, the null hypothesis is rejected and alternate hypothesis is accepted i.e. there is relation between job satisfactions is dependent on employee engagement. Regression The R value is which emphasizes that as the employee engagement increases the job satisfaction also increases. In the above table the R Square value indicates that employee engagement accounts for 71.5% of the variance in the job satisfaction. 49 Roheel Jain, Dr. Balu.L

6 In the above Anova test the independent variable employee engagement has a significant variance on the dependent variable job satisfaction. (p<0.001). Regression Equation Average Employee Engagement= (Income) Results and Findings The results of the study show that there is a strong relation between the variables employee engagement and job satisfaction also employee engagement has positive impact on job satisfaction of the employees. The average engagement level of the employee on a scale of 5 was 3.87 which shows that there is satisfactory level of engagement the average of job satisfaction on the scale of 5 was 3.56 which also shows that there is satisfactory level of job satisfaction % of employees feel proud to be an employee of Aditya Birla Group. About 83% of employees recommended Birla White as a great place to work. Also it was found that the growth factors have highest impact on satisfaction level of employees. Suggestion and Recommendations The scope of the study was restricted to only white collar employees also most of the studies in employee engagement deals with only staff level employees the further studies can be done for blue collar employees. The study mostly deals with transactional aspects of job satisfaction wherein motivational factors which are transformational in nature can be included in the study to increase the scope of the impact of engagement factors and job satisfaction. Performance of the individual and firm performance can be studied with respect to employee engagement and job satisfaction of employees. The link between the employee engagement and job 50 Roheel Jain, Dr. Balu.L

7 satisfaction can further be extended to study the impact on organizational performance and employee motivation. Conclusion The research paper studies employee engagement and its impact on job satisfaction in a manufacturing unit. The company chosen for the analysis was Ultratech Cement Ltd. For the purpose of research primary data was collected wherein two questionnaires based on employee engagement and job satisfaction were distributed for the same. The study concluded that the employee engagement has a significant impact on job satisfaction of employees. This also proves that employee engagement plays a very crucial role in manufacturing company so as to achieve high job satisfaction level among employees which in turn may result in better performance and commitment towards organization. References Abraham, D. S. (2012). Development of Employee Engagement Programme on the basis of Employee Satisfaction Survey. Journal of Economic Development, Management, IT, Finance and M arketing, Bhavani, Sharavan, & Arpitha. (2015). A Study Effectiveness of Employee Engagement in Automobile Industry. International Journal of Economics & ISSN: Management Sciences. Gallup Consultancy. (n.d.). Retrieved from Gallup Consultancy. (n.d.). Retrieved from Harter, J. K., Schmidt, F. L., & Keyes, C. L. (2003). Well Being in the Workplace and its Relationship to Business Outcomes-A Review of the Gallup Studies. American Psychological Association, Hoppock, R. (1935). Job Satisfaction. New York and London : Harper and Brothers. Kahn. (1990). Psychological Conditions of Personal Engagement and Disengagement at Work. Academy of Management Journal, Locke, E. A. (1976). The Nature and Causes of Job Satisfaction. Handbook of Industrial and Organizational Psychology, Lu, L., Allan Cheng Chieh Lu, Gursoy, D., & Neale, N. R. (2014). Work engagement, job satisfaction, and turnover intentions. IJCHM, Malavika Desai, Majumdar, B., & Prabhu, G. P. (2010). A Study on employee engagement in two Indian businesses. ASIAN JOURNAL OF MANAGEMENT RESEARCH. Schmidt, & Harter. (1993). Spector, P. E. (1985). American Journal of Community Psychology. Tejpal, P. ( ). Enhancing the Job Satisfaction Level Through Dimensons of Employee Engagement: An Empirical Study on Private Sector Bank Managers. Drishtikon: A Management Journal. Thiagarajan, & Renugadevi. (2011). An empirical investigation on Employee Engagement Practices in Indian BPO Industries. 51 Roheel Jain, Dr. Balu.L