Introduction
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 organization (Bersin,
2014). In contrast, improved employee productivity had a positive effect on
organizational financial performance.
Organizational
productivity is determined by employees’ efforts and engagement (Musgrove,
Ellinger, & Ellinger, 2014). Organisations with higher engagement
levels tend to have lower employee turnover, higher productivity, higher total
shareholder returns and better financial performance (Baumruk, 2006). Towers
Perrin (2007) found that organisations with the highest percentage of engaged
employees increased their operating income by 19 per cent and their earnings
per share by 28 per cent year‐ to‐year.
Figure 1.1: The three types of employees
Source : Gallup (2006)
Video
1: Importance of Employee Engagement
Source
(Engage, 2013)
On this video, the
importance of employee engagement is well explained shortly.
List of References
Bersin,
J. (2014, March 15). Why companies
fail to engage today’s workforce: The overwhelmed employee. Forbes. Retrieved
from https://www.forbes.com/sites/joshbersin/2014/03/15/whycompanies-fail-to-engage-todays-workforce-the-overwhelmed-employee/#34880e894726
Baumruk R (2006), ʹWhy managers are crucial to increasing engagementʹ, Strategic HR Review, January/February.
Engage,
(2013) Importance of Employee Engagement. [Online]. Available at https://youtu.be/dSfDROxCuxI
[Accessed on 17th August
2022]
Gallup (2006), ʹGallup study: engaged employees inspire company innovation: national survey finds that passionate workers are most likely to drive organisations forwardʹ, The Gallup Management Journal, http://gmj.gallup.com/content/24880/Gallup‐Study‐Engaged‐Employees‐ Inspire‐Company.aspx
Hill,
S. A., & Birkinshaw, J. (2012). Ambidexterity and survival in corporate
venture units. Journal of Management, 40, 1899–1931.
doi:10.1177/0149206312445925
Kortmann,
S., Gelhard, C., Zimmermann, C., & Piller, F. (2014). Linking strategic
flexibility and operational efficiency: The mediating role of ambidextrous
operational cap.
Musgrove,
C., Ellinger, A. E., & Ellinger, A. D. (2014). Examining the influence of
strategic profit emphases on employee engagement and service climate. Journal
of Workplace Learning, 26, 152–171. doi:10.1108/JWL-08-2013-0057
Osborne,
S. and Hammoud, M. (2017) Effective Employee Engagement in the Workplace.
International Journal of Applied Management and Technology, 16, 50-67.
Purcell,
J. (2014). Disengaging from engagement. Human Resource Management Journal.
Towers Perrin (2007), Largest Ever Study of Global Workforce Finds Senior Management Holds Trigger to Unleash Talent Potential, www.towersperrin.com/tp/showdctmdoc.jsp?url=HR_Services/Canada/Englis h/Press_Releases/2007/20071022/2007_10_22.htm&country=globa].
Hi Hakeem. It is important for the organization's leaders to future-proof how to build a balanced relationship between employees, take the necessary steps to innovate and increase short-term profits. s (Hill & Birkinshaw, 2012).
ReplyDeleteHi Nonali Sandeepa! Yes i agree with you, further 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. Therefore if the both the parties understands and work together the organiation will be able to maximize the profits.
DeleteEmployee engagement results from a two-way connection between the employer and employee, who both acknowledge that there is work to be done. The distinction between job satisfaction, the well-known construct in management, and engagement contending that employee satisfaction is not the same as employee engagement and since managers can not rely on employee satisfaction to help retain the best and the brightest, employee engagement becomes a critical concept ( Markos and Sridevi, 2010).
ReplyDeleteHi Virosha ! Thank you for the comment, the employee engagement will become critical concept when the management cannot take the matter seriously and attend when it required, otherwise the organization will lose the best employees. According to Towers Perrin (2003), building engagement is a process that never ends and it rests on the foundation of a meaningful and emotionally enriching work experience. Furthermore, it is not about making people happy, or even paying them more money. As important as pay and benefits are in attracting and retaining people, it was found they play a less important role in engaging people in their work. The elements found to be fundamental for engagement were strong leadership, accountability, autonomy, a sense of control over one’s environment and opportunities for development; there are no substitutes for these fundamentals.
ReplyDeleteOsborne and Hammoud (2017)'s research findings refer to B4:F34 traits such as empathy, good two way communication, respect and objectivity, which should be adopted by leaders enabling good employee engagement strategies.
ReplyDeleteHi Isham ! Agreed your point, leaders have the huge responsibility to create positive atmosphere to get better engagement. According to (Kortmann et al., 2014) To make or maintain their companies’ profitability, leaders of companies must work hard to engage employees.
DeleteWell explained, also for the most part, employee engagement was defined as emotional and intellectual commitment for the organization (Baumruk 2004, Richman 2006 and Shaw 2005) or the amount of discretionary effort exhibited by employees in their work (Frank et al 2004). Although it is recognized and accepted that employee engagement is a multifaceted construct, as it previously suggested by Kahn (1990), Truss et al (2006) define employee engagement simply as “passion for work”, a psychological state that encompasses the three dimensions of engagement discussed by Kahn (1990) and captures the common theme that runs through all these settings.
ReplyDeleteHi Reshan, Thank You ! Yes the employee engagement is an emotional and intellectual commitment to an organization (Andrew & Sofian, 2012. Meyer, Stanley, & Parfyonova, 2012). Farndale and Murrer (2015) defined employee engagement as when employees harness themselves physically, cognitively, and emotionally while completing daily tasks.
DeleteThis verdict and definition forwarded by Institute of Employment Studies gives a clear insight that employee engagement is the result of two-way relationship between employer and employee pointing out that there are things to be done by both sides. Furthermore, Fernandez (2007) shows the distinction between job satisfaction, the well-known construct in management, and engagement contending that employee satisfaction is not the same as employee engagement and since managers can not rely on employee satisfaction to help retain the best and the brightest, employee engagement becomes a critical concept. Other researchers take job satisfaction as a part of engagement, but it can merely reflect a superficial, transactional relationship that is only as good as the organization’s last round of perks and bonuses; Engagement is about passion and commitment-the willingness to invest oneself and expand one’s discretionary effort to help the employer succeed, which is beyond simple satisfaction with the employment arrangement or basic loyalty to the employer (BlessingWhite, 2008; Erickson, 2005; Macey and Schnieder ,2008). Therefore, the full engagement equation is obtained by aligning maximum job satisfaction and maximum job contribution (Kompaso, S.M. and Sridevi, M.S. 2010).
ReplyDeleteHi Danushi! Seems you have understood the employee engagement concepts thoroughly, yes the relationship between employee and employer is vital for the engagement. strong relationship between an employee and leader fosters a healthy team environment and can increase job satisfaction and productivity. When employees are engaged, their individual performance is high, which can positively impact overall organizational performance. Flexible and adaptive leaders are critical in today’s
Deleteorganizations (Crossman & Crossman, 2011).
Hi Hakeem,
ReplyDeleteGreat approached explained about When employees feel committed and excited about their jobs, their engagement is high, which results in better performance and productivity.
Hi Nifrash, Exactly the productivity is improved when the engagement of employees are high. The longevity of an organization is affected by employee engagement, which is a factor on the financial performance of the organization (Bersin, 2014). In contrast, improved employee productivity had a positive effect on organizational financial
Deleteperformance.
Agree with you Hakeem. Enhancing positive traits and promoting higher performance in the organization often relate positively to customer satisfaction. Therefore, engagement is seen to be a good thing for both the employer and the employee. The employer gains a performing and stable workforce while the employee is satisfied through the working environment (Kompaso and Sridevi, 2010).
ReplyDeleteHi Isuri! Employee engagement strategies implemented by business leaders result in higher levels of employee engagement (Blattner & Walter, 2015), customer satisfaction, productivity, and profit (Bowen, 2016).
DeleteEngagement takes place when people are committed to their work and the organization and are motivated to achieve high levels of performance (Armstrong, 2014).
ReplyDeleteHi Rumaiz! Exactly, employee motivation is the vital factor for the engagement of business operations, because when the employees are satisfied with their jobs only engagement will begin. Fullagar and Mills (2008) found a significant relationship between intrinsic motivation and flow experiences. Flow is the holistic sensation that employees feel when they are totally engaged within their work (Fullagar & Mills, 2008). The relationship between intrinsic motivation and flow supports considering engagement as the psychological need of autonomy.
DeleteHi Hakeem,
ReplyDeleteThe business communicator (2005) has defined employee engagement using 3 definitions.
1. Engagement is a two side of a coin, the knowledge to do one’s job effectively and motivation to apply that knowledge
2. Increasing workforce dedication to achieve a business outcome
3. Employee engagement is a social process by which people become personally implicated in strategy and change in their daily work.
(Little, B. and Little, P., 2006)
Hi Dulshan, the concept of engagement is easily explained in your comment above. Yes employees dedication on their jobs will result in the business outcome. Dedicated and meaningful work enables employees to realize how valuable they are within the
Deleteorganization and makes them engaged.The longevity of an organization is affected by employee engagement, which is a factor on the financial performance of the organization (Bersin, 2014). In contrast, improved employee productivity had a positive effect on organizational financial performance.
Agree with you Hakeem, according to Mehta and Mehetha (2013), employee engagement is linked with the emotional, cognitive and physical aspects of work and how these factors integrated. Employee engagement should not be seen as just another HR tactic. Employee engagement is a long-term process that is connected to fundamental elements of the company, such as values, culture, and management philosophies. Employees must be exhibiting the behaviors that employers want to see in the workplace. Through each commercial action they conduct, a firm must encourage the elements that have a favorable impact on engagement.
ReplyDeleteExactly Shiran, Employee engagement the companies cannot get in short term as soon as the employees joined, as you said its a long process and the employer must work hard to by implementing processes, HR Practices and require close monitoring as well. The emotional state of an employee also relates to motivation (Deci & Ryan, 1985). When employees begin to withdraw, and hide their identities, ideas, and feelings, they become disengaged and defensive, resulting in an adverse effect on work performance (Deci & Ryan, 1985).
DeleteHi Hakeem,
ReplyDeletejob satisfaction “deserves” to maintain its status as the preeminent job attitude. In addition, given that trait affect is widely believed to provide a dispositional underpinning for job attitudes, it is important to ascertain the contributions of the attitudes themselves beyond trait positive
and negative affect (Reeshad 2012).
i agree The survival of corporate industries is dependent on maximizing profits from existing capabilities, while recognizing and adjusting to the fact that what may work today may not necessarily work in the future (Kortmann, Gelhard, Zimmermann, & Piller, 2014). To make or maintain their companies’ profitability, leaders of companies must work hard to engage employees (Kortmann et al., 2014). However, leaders may sometimes struggle to adapt their organization in response to change if they limit their focus to existing products and processes (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).
ReplyDelete