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Introduction

Introduction

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The survival of corporate industries is dependent on maximizing profits from existing capabilities, according to Kortmann et al., 2014 to make or maintain companies’ profitability, leaders of companies must work hard to engage employees. However, many organizations struggle in proposing the change as their main focus on the employees are lost (Hill & Birkinshaw, 2012). Understanding how to manage the balance between employee relations, adopting innovation, and maximizing short-term profits is critical to business leaders ensuring a viable future for their corporations (Hill & Birkinshaw, 2012). Skilled labour, education level, best practices, developments have been introduced to increase the efficiency in every firm but due to disengaged employees, the productivity and   the results have drastically dropped. (Purcell, 2014).   The long term existence of an organization is affected by employee engagement, which is a factor on the financial performance of the organiz...

Drivers of Employee Engagement

According to the Towers Perrin Talent Report (2003), three main work place attributes which will drive the engagement of employees Sense of feeling valued and involved After surveying 10,000 NHS employees in Great Britain, Institute of Employment Studies (Robinson et al., 2004) points out that the key driver of employee engagement is a sense of feeling valued and involved , which has the components such as involvement in decision making, the extent to which employees feel able to voice their ideas, the opportunities employees have to develop their jobs and the extent to which the organization is concerned for employees’ health and well-being. Communication  CIPD (2006) on the basis of its survey of 2000 employees from across Great Britain indicates that communication is the top priority to lead employees to engagement. The report singles out having the opportunity to feed their views and opinions upwards as the most important driver of people’s engagement. The report also identifie...

Transformational Leadership and Employee Engagement

Employee engagement has generated a great deal of interest in recent years as a widely used term in organizations and consulting firms (Macey & Schneider, 2008). Much evidence points to the fact that there is a direct linkage between employee engagement and profitability (Czarnowsky, 2008) and thus organizational performance. Employee engagement has been characterized as a distinct and unique construct that consists of cognitive, emotional, and behavioral components associated with individual role performance (Saks, 2006). Engagement is the willingness and ability to contribute to company success; the extent to which employees put discretionary effort into their work, in the form of extra time, brainpower and energy (Towers Perrin, 2003). Strong leadership is believed to influence employee engagement (Towers and Perrin, 2003). Meyer and Allen (2006) found that leadership can be used as an antecedent for organizational commitment. Leadership is regarded as a critical factor in ...

Engagement and Employee Involvement

Attitude & Responsibility The employees are ‘engaged’ if they have a positive attitude towards work, Purcell et al (2003) suggest that employee engagement is only meaningful if there is a more genuine sharing of responsibility between management and employees over issues. The CIPD survey conducted by Truss et al (2006) suggests that strengthening employee voice can make a difference to organizational performance. Employee involvement is seen as a central principle of ‘soft’ HRM, where the focus is upon capturing the ideas of employees and securing their commitment (Beardwell and Claydon 2007)   Opportunity to express the view One of the main drivers of employee engagement is for employees to have the opportunity to feed their view upwards (Truss et al 2006) Their survey concluded that currently many organizations are not very successful in doing this and as a result many employees felt they lacked opportunities to express their views and be involved in decisions. On the other h...

Impact of Employee Engagement in organizations

Customer Loyalty Engaged employees tend to have a better understanding of how to meet customer needs (Right Management, 2006) and, as a result, customer loyalty tends to be better in organisations where the employees are engaged (Pont, 2004). Levinson (2007a) suggests that employees who are happy in their work are more likely to create loyal customers Employee Retention Employees who are happy in their jobs are more likely to stay in the organization (Levinson 2007a). Employee Productivity ‘ Engaged employees work harder, are more loyal and are more likely to go the ‘extra mile’ for the corporation’ (Lockwood, 2007, p. 3) Advocacy of the organization Engaged employee are more likely to recommend or promote their organization as the better to place to work in the market as well as promote its product and services (Scottish Executive Social Research, 2007 p. 23). Same way disengaged employees will demotivate or discourage others to join the organization (Penna 2006) Those...