Article on Hr and Multi Variate Analysis
Content
Employee Engagement Practices for Employee Motivation and Satisfaction
Abstract “Retaining employees is becoming a tough job for companies in today's hard economic times. As corporate realize the criticality of focusing on developing employee engagement and keep employees happy, Noida based firms are guiding corporate with rewards and recognition solutions.” – Excerpt from Economic Times September 5th, 2013. This visualizes the present day scenario of corporate world. No just in IT industry today getting human resource, retaining them and seeing to it that they develop along with development of the organization is one major challenge that every HR Manager or an organization by itself is facing in day in day out activities. Hence this study focuses on comprehending the prominence of Employee Engagement and its impact on the motivation of employees improving their satisfaction levels. To make this study a factual proof of employee engagement practices contributing to employee motivation and satisfaction, Multivariate analysis tools are used. This study is undertaken by taking a sample of 250 IT employees from different CMM level companies. The sample is also a combination of closely connected executive levels of employees in these IT companies to help in understanding the variation in practices for different category employees. This study also puts emphasis on the high involvement work practices that would create joint ownership for employees and employers in organizations. Keywords: Employee Engagement, Joint ownership, High involvement work practices Introduction Employee Engagement can be defined as, „A business management concept that describes the level of enthusiasm and dedication a worker feels toward his/her job‟. Engaged employee cares their work and about the performance of the company, and feels that their efforts make a difference. An engaged employee is in it for more than a paycheck. Employee engagement can be critical to a company's success. Engaged employees are more likely to be productive and higher performing. Employers can encourage employee engagement in many ways, including communicating expectations clearly, offering rewards and advancement for excellent work, keeping employees informed about the company's performance, and providing regular feedback. According to Scarlett Surveys, "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at work". Thus engagement is distinctively different from employee satisfaction, motivation and organizational culture. A modernized version of job satisfaction, Schmidt et al.'s influential definition of engagement was "an employee's involvement with, commitment to, and satisfaction with work. Employee engagement is a part of employee retention." This integrates the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer & Allen, 1991). To put
in casual terminology, the opposite of employee engagement is a zombie employee. A zombie employee is a disengaged employee that will stumble around the office, lower morale and costs the company money. Linkage research (e.g., Treacy) received significant attention in the business community because of correlations between employee engagement and desirable business outcomes such as retention of talent, customer service, individual performance, team performance, business unit productivity, and even enterprise-level financial performance (e.g., Rucci et al, 1998 using data from Sears). Some of this work has been published in a diversity context (e.g., McKay, Avery, Morris et al., 2007). Directions of causality were discussed by Schneider and colleagues in 2003. More recently employee engagement has become an area of focus within organizations for the purpose of retention as a means of avoiding expensive employee replacement costs resulting from staff who voluntarily quit their jobs. According to SHRM (Society of Human Resource Management) the cost of replacing one $8 per hour employee can exceed $3,500, which gives companies a strong financial incentive to maintain their existing staff members through strong employee engagement practices. Objectives of the Study The key motive behind this analytical study is as follows, To study the employee engagement practices in the present IT Industry. To study the impact of employee engagement practices on Employee morale and motivation. To study the impact of employee engagement practices on Employee satisfaction and retention. To study the employee perception towards employee engagement practices.
Hypotheses H10: Employee engagement practices have a significant impact on employee motivation levels. H11: Employee engagement practices have no significant impact on employee motivation levels. H20: Employee engagement practices lead to employee satisfaction and hence retain employees. H21: Employee engagement practices don‟t lead to employee satisfaction nor retains employees. Factors Considered for the Study: Performance Appraisal Compensation and Benefits Work Culture Working Ambience Working Hours/Shifts Monitoring System Training and Development Job Rotation
Job Profile Support towards Innovation Code of Conduct Dialogue towards superiors Career Advancement options Quality of Working Relationships Employee Communication Reward to Engage
Important Facts of Employee Engagement Only 31% of employees are actively engaged in their jobs. 88% of highly engaged employees believe they can positively impact quality of their organization's products, compared with only 38% of the disengaged. 72% of highly engaged employees believe they can positively affect customer service, versus 27% of the disengaged. 68% of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged. 52% gap exists in operating incomes between companies with highly engaged employees and companies whose employees have low-engagement scores. High-engagement companies improved 19.2% while low-engagement companies declined 32.7% in operating income. An International Illustration, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that account executives in the wholesale division who were actively disengaged produced 28% less revenue than their colleagues who were engaged. Furthermore, those not engaged generated 23% less revenue than their engaged counterparts. Engaged employees also outperformed the not engaged and actively disengaged employees in other divisions. Impact of Employee Engagement Various research illustrations indicate the following impacts of employee engagement, Engaged employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organization forward. Engaged employees feel a strong emotional bond to the organization that employs them. Emotional bonding is associated with people demonstrating willingness to recommend the organization to others and commit time and effort to help the organization succeed. It suggests that people are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors. Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization. As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital. Research by Gallup Consulting has shown a strong correlation between the degree of well-being of an individual and the extent to which they are engaged as an employee high well-being yields high engagement. A well and engaged employee is likely to have less sick days, lowering the cost of lost productivity to their organization, and come to
work energized and focused. A well and engaged employee is efficient and effective and a valuable asset in the workplace. Steps to implement Employee Engagement Practices On a detailed study of contemporary research indicates that there is a huge requirement from organization‟s side to create awareness and need for employee engagement. This also helps them to achieve individual goals employees and common goals of organizations. Explain what engagement means and how becoming more engaged will help them; This makes them to feel more controlled over their success and progress. Help people understand their own level of engagement and their ability to improve; this helps employees to improve their engagement levels and become more committed. Provide specific suggestion; this makes employees to take ownership and establish necessary changes of growth. Encourage innovation helping higher levels of engagement; this leads to joint ownership of engagement practices between employers and employees. Improve Employee communication to Management and Leadership teams; this raises motivation levels by giving them more recognitions and importance of contributions. Encourage self development of employees including career advancement options; this helps employees understand what leads to their growth and which indirectly helps in organizational growth. Encourage Mentoring concepts; this leads to leadership, initiation and collective growth concepts. Focus on developing relationship with employees based on trust, candor and care. Enable two communication systems creating understanding over leaders and team member‟s mutual contributions and feedbacks. Develop and rely on fair and transparent appraisal mechanisms. Provide employees with ongoing and positive/critical feedback. Ensure the connectivity and match between employee skills set to their job descriptions. Enable role clarity and specific goals to all the employees. Connect Employee Value contributions to Employee Value expectations. Communicate the purpose of Job creating passion in employees. Pay fairly which should play fairly to employees.
Employee Expectations driving Employee Engagement Employees expect few aspects which they feel to be basic amenities at work place. They are as follows, a. b. c. d. e. Psychological meaningfulness towards Job Profile, Roles and Responsibilities. Safety towards freedom to express their ideology at workplace. Resource availability and support to improve and enable their performance at work place. Transparency in vision, mission, communication and performance assessment aspects. Connectivity between policies and practices to core strategic goals.
A Rule book of Employee Engagement The study of employee engagement practices in various organizations gives out a common set of rules followed by various organizations while implementing the engagement practices. A consolidation of all such set of rules is the following rule book of employee engagement. Define Employee Engagement terms clearly. Ensure senior managers commitment to the full extent. Frame the set of principles to measure employee engagement identifying contributing factors. Recognize, reward and celebrate contributions. Freeze System, Actionable points and contributions in precise and specific manner. Keep line of communication and consultation an open and two way process. Collaborate with HR and respect their contribution and capacity in organizing human resources. Make engagement a phenomenon creating the understanding that it‟s a never ending journey. Link analytics and logic to engagement and its implications on business. Make it a habit to reward and recognize the Human Capital. Implementing Engagement: High Involvement Work Practices Numerous authors have developed a long list of management practices for generating high involvement and high performance among employees. These range from selecting the right people for the organization to a commitment to training and skill development, team based work organization, job security, and incentive-based pay. In each of these general categories, a variety of specific practices have been developed. For example, incentive-based pay can take the form of a gain-sharing program, performance-contingent pay to individuals, team-based pay, or employee ownership. Training programs can be developed for current and future skills, technical and interpersonal skills, new hires and experienced employees. With all of the choices, developing a coherent set of high-involvement work practices that are consistent across the organization and reinforce each other is a nontrivial challenge for all managers. Organizational
effectiveness scholar Edward Lawler and his colleagues identified four interlocking principles for building a high-involvement work system that help to ensure that the system will be effective and that the various practices will work together to have a positive impact on employee engagement. These principles can be summed up as providing employees with power, information, knowledge and rewards. Factors Driving High Involvement Work Practices Power: power refers to the decision making power that employees have towards their performance parameters and quality of work life. Power here can also be defined as the accountability designated to an employee over the role and the freedom he has to perform in an optimum manner to serve the accountability. Power and involvement are directly proportional attributes, hence as the power (freedom of operation) of employees increase so would their involvement in their job increases and hence they become highly engaged to their work and organization. Knowledge: knowledge here refers to employee skills and abilities that can be distinguished from information, which is the data employees use to make decisions and take action. Improving employees' knowledge means a commitment to training and development. The training investments are essential in a high- involvement organization because when employees are making important workplace decisions, it is important that they have the skills and abilities to make the right decisions. When employees feel their improvisation of standards at work place their motivation levels grow up and hence this would lead to more engagement to their work and organization. Rewards: The rewards component of the high-involvement equation means rewarding employees for expending discretionary effort to enhance organizational performance. A key element in the high-involvement equation, rewards for performance ensure that employees use their power, information and knowledge for the good of the firm. Strong statistical evidences prove that these factors have influenced the involvement of employees to their jobs and made them engaged to the work and organizations. Focus on these parameters lead to high performance and low retention in such organization. Various international surveys indicate the demand for High involvement work practices in Western countries leading to high growth rates of organizations. Many researches taken up in US and Canada proved the usage and impacts of High Involvement work practices on Employee Engagement and organizational growth. Inspired with these successes today globally many organizations tend to implement these High involvement work practices to increase the productivity and engagement levels of the employees leading employee growth and organizational growth as well. This also proves that Power, Knowledge and Rewards definitely have motivation and psychological impact on employee and organizational performance.
Table of Analysis:
Factor Analysis
Total Variance Explained Component Initial Eigen values % of Variance 18.963 13.060 10.940 10.049 9.456 7.887 6.861 6.666 6.066 5.001 4.293 .758 Cumulative % 18.963 32.023 42.963 53.012 62.469 70.356 77.217 83.882 89.948 94.949 99.242 100.000 Extraction Sums of Squared Loadings % of Variance 18.963 13.060 10.940 10.049 9.456 Cumulative % 18.963 32.023 42.963 53.012 62.469
Rotation Sums of Squared Loadings % of Variance 18.290 12.291 11.722 10.093 10.072 Cumulative % 18.290 30.582 42.304 52.397 62.469
Total 1 2 3 4 5 6 7 8 9 10 11 12 2.276 1.567 1.313 1.206 1.135 .946 .823 .800 .728 .600 .515 .091
Total 2.276 1.567 1.313 1.206 1.135
Total 2.195 1.475 1.407 1.211 1.209
Extraction Method: Principal Component
Particulars
Performance Appraisal Compensation & Benefits Work culture Ambience Working Hours/ shifts Monitoring system Training & Development Job rotation Support towards innovation Job profile Code of conduct Emloyee Satisfaction Table Name: Rotated component matrix
1 -.001 -.173 -.057 .480 .003 .413 -.040 -.064 -.021 .038 .939 .933
2 .806 .574 -.048 -.113 -.412 .236 -.024 -.084 .036 .488 -.093 .007
Component 3 -.098 .354 -.041 -.390 .592 .277 -.057 -.172 .765 -.267 -.040 .002
4 -.002 -.144 .221 -.354 .031 -.008 .883 -.368 -.058 .310 .022 -.007
5 -.028 -.043 .754 .042 -.082 .490 .041 .620 -.017 .006 -.053 -.011
Findings of the Study 78% of the top Management employees opinions indicates that engagement practices implemented at their organizations lead to increased Employee Productivity. 89% employees accepted that their increased satisfaction levels have reduced their Absenteeism and have motivated them to be present at organization to maximum extent. 72% of managerial role employees opined that engagement practices lead to reduction in undesirable turnout of Employees Engagement leads to motivation and hence proves emotional commitment of employees towards their job and organization was accepted by 72% of respondents. Creates a together battle ground for employees and employers, this statement was accepted by 68% of respondents. 74% of respondents felt that increased communication levels will lead to Reduced Skepticism of employees. 82% of the respondents felt that Challenging work promotes higher levels of involvement of employees and hence engagement. 69% of the respondents felt that decision making authority or power provided to employees will increase their involvement levels to their job and hence more commitment to organization. 86% of the respondents felt that employee engagement practices leading to the improvisation of employees‟ profile, skill set and quality of work life portrays Senior management‟s commitment in employee‟s well-being. 67% of the respondents felt that employee engagement practices lead to Collaborative Work Environment 72% of the respondents felt that equipping them with right resources give them leverage to be more productive and hence would make them to get the job done with more commitment. 52% of the respondents felt that the employee engagement practices would indicate the company‟s care and concern for employees. 68% of the respondents felt that fairness at work at all hierarchical levels improves motivation levels of employees and hence leads to higher levels of engagement. “Rewards and incentive practices would lead to feelings of accomplishment”, this statement is accepted by 83% of the respondents. 59% of the respondents felt appreciation of ideas and freedom of innovation helps to increase the employee motivation levels. The analytical findings support the null hypothesis indicating that employee engagement practices have impact on employee motivation. Factor Analysis suggests that Work Culture, Support towards innovation, Training and Development and performance appraisal are the key factors that needs to be focused for higher levels of employee engagement and their satisfaction.
The Factor analysis also suggests that employee engagement practices lead to employee satisfaction and hence to their retention. Hence, it proves the H20 Null hypothesis being accepted. Above finding of Factor Analysis indicates that there is a significant impact of Employee engagement practices towards Employee motivation and hence the Null Hypothesis H10 is accepted. Conclusion: The empirical study gives an exposure and insight into the concept of employee engagement and its impact on employee satisfaction and motivation. This study gave out an ultimate understanding that employees are internal customers and their satisfaction is key for organizational growth. Human resources are to be treated as Talent pool who acts as Human capital to organization‟s returns. They are no more treated as compensated work force but as a committed and collaborative working partner in all traits of business. This study also comprehended the need for high involvement work practices that leads to higher levels of employee engagement and motivation. This article also created an understanding that western part of the world has grown more productive and leads to growth of organizations due to the high involvement work practices. Respondents opined that employee engagement practices also indicate the commitment of organization towards its employees. Respondents also opined that clear communication and transparency would lead to more liberty to employees and will gives out more productivity. The statistical analysis proved both the null hypothesis to be true by indicating the prominence of Employee engagement by stating that Employee engagement practice leads to employee motivation, Satisfaction and hence helps them to get retained in the organizations they work. This also helps the study to conclude that Employee engagement practices lead to happier organizations and financially flourishing organizations. This study also made it evident that improvisation of employees through training and development would increase their motivation levels and decrease the absenteeism of employees. This study concludes by stating that employee engagement practices along with high involvement work practices lead to reduced employee turnout giving rise to employee motivation and employee retention. References: Jose Luis Romero: Improving Employee Engagement, Aspen Publishers.(ISSN: 10600434 USPS 017461) Malcolm Higgs: Building Employee Engagement, Henley Manager Update, Vol.87, No.2, Braybrooke press ltd. Alan Crozier: Engagement and enriched,Communication World, ABC Publishers, www.iabc.com,sept.2010 Alison M.Konrad: Engaging Employees through high-involvement work practices, Ivey Business Journal, March - 2006.
Mark Brown: Engage your people, Smart Business Network, June-2011. Steve Bates: Getting Engages,HR Magazine, Februrary, 2004. Christopher Bones: Engagement is at the heart of a successful m&A, Ivey Business Journal, jan-2007. John Bisaha & rick Bizzard: Employee Engagement Higher at Religious Hospitals, GPNS, Aug -2005. The Employee Engagement Report 2012. William H. Macey, Benjamin Schneider, Karen M. Barbera, Employee engagement: tools for analysis, practice, and competitive advantage, Pearson,2009. Brad Federman: Employee Engagement, 2009. Dr. C. R. Kothari: Research methodology: methods and technique,2008.
Abstract “Retaining employees is becoming a tough job for companies in today's hard economic times. As corporate realize the criticality of focusing on developing employee engagement and keep employees happy, Noida based firms are guiding corporate with rewards and recognition solutions.” – Excerpt from Economic Times September 5th, 2013. This visualizes the present day scenario of corporate world. No just in IT industry today getting human resource, retaining them and seeing to it that they develop along with development of the organization is one major challenge that every HR Manager or an organization by itself is facing in day in day out activities. Hence this study focuses on comprehending the prominence of Employee Engagement and its impact on the motivation of employees improving their satisfaction levels. To make this study a factual proof of employee engagement practices contributing to employee motivation and satisfaction, Multivariate analysis tools are used. This study is undertaken by taking a sample of 250 IT employees from different CMM level companies. The sample is also a combination of closely connected executive levels of employees in these IT companies to help in understanding the variation in practices for different category employees. This study also puts emphasis on the high involvement work practices that would create joint ownership for employees and employers in organizations. Keywords: Employee Engagement, Joint ownership, High involvement work practices Introduction Employee Engagement can be defined as, „A business management concept that describes the level of enthusiasm and dedication a worker feels toward his/her job‟. Engaged employee cares their work and about the performance of the company, and feels that their efforts make a difference. An engaged employee is in it for more than a paycheck. Employee engagement can be critical to a company's success. Engaged employees are more likely to be productive and higher performing. Employers can encourage employee engagement in many ways, including communicating expectations clearly, offering rewards and advancement for excellent work, keeping employees informed about the company's performance, and providing regular feedback. According to Scarlett Surveys, "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at work". Thus engagement is distinctively different from employee satisfaction, motivation and organizational culture. A modernized version of job satisfaction, Schmidt et al.'s influential definition of engagement was "an employee's involvement with, commitment to, and satisfaction with work. Employee engagement is a part of employee retention." This integrates the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer & Allen, 1991). To put
in casual terminology, the opposite of employee engagement is a zombie employee. A zombie employee is a disengaged employee that will stumble around the office, lower morale and costs the company money. Linkage research (e.g., Treacy) received significant attention in the business community because of correlations between employee engagement and desirable business outcomes such as retention of talent, customer service, individual performance, team performance, business unit productivity, and even enterprise-level financial performance (e.g., Rucci et al, 1998 using data from Sears). Some of this work has been published in a diversity context (e.g., McKay, Avery, Morris et al., 2007). Directions of causality were discussed by Schneider and colleagues in 2003. More recently employee engagement has become an area of focus within organizations for the purpose of retention as a means of avoiding expensive employee replacement costs resulting from staff who voluntarily quit their jobs. According to SHRM (Society of Human Resource Management) the cost of replacing one $8 per hour employee can exceed $3,500, which gives companies a strong financial incentive to maintain their existing staff members through strong employee engagement practices. Objectives of the Study The key motive behind this analytical study is as follows, To study the employee engagement practices in the present IT Industry. To study the impact of employee engagement practices on Employee morale and motivation. To study the impact of employee engagement practices on Employee satisfaction and retention. To study the employee perception towards employee engagement practices.
Hypotheses H10: Employee engagement practices have a significant impact on employee motivation levels. H11: Employee engagement practices have no significant impact on employee motivation levels. H20: Employee engagement practices lead to employee satisfaction and hence retain employees. H21: Employee engagement practices don‟t lead to employee satisfaction nor retains employees. Factors Considered for the Study: Performance Appraisal Compensation and Benefits Work Culture Working Ambience Working Hours/Shifts Monitoring System Training and Development Job Rotation
Job Profile Support towards Innovation Code of Conduct Dialogue towards superiors Career Advancement options Quality of Working Relationships Employee Communication Reward to Engage
Important Facts of Employee Engagement Only 31% of employees are actively engaged in their jobs. 88% of highly engaged employees believe they can positively impact quality of their organization's products, compared with only 38% of the disengaged. 72% of highly engaged employees believe they can positively affect customer service, versus 27% of the disengaged. 68% of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged. 52% gap exists in operating incomes between companies with highly engaged employees and companies whose employees have low-engagement scores. High-engagement companies improved 19.2% while low-engagement companies declined 32.7% in operating income. An International Illustration, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that account executives in the wholesale division who were actively disengaged produced 28% less revenue than their colleagues who were engaged. Furthermore, those not engaged generated 23% less revenue than their engaged counterparts. Engaged employees also outperformed the not engaged and actively disengaged employees in other divisions. Impact of Employee Engagement Various research illustrations indicate the following impacts of employee engagement, Engaged employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organization forward. Engaged employees feel a strong emotional bond to the organization that employs them. Emotional bonding is associated with people demonstrating willingness to recommend the organization to others and commit time and effort to help the organization succeed. It suggests that people are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors. Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization. As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital. Research by Gallup Consulting has shown a strong correlation between the degree of well-being of an individual and the extent to which they are engaged as an employee high well-being yields high engagement. A well and engaged employee is likely to have less sick days, lowering the cost of lost productivity to their organization, and come to
work energized and focused. A well and engaged employee is efficient and effective and a valuable asset in the workplace. Steps to implement Employee Engagement Practices On a detailed study of contemporary research indicates that there is a huge requirement from organization‟s side to create awareness and need for employee engagement. This also helps them to achieve individual goals employees and common goals of organizations. Explain what engagement means and how becoming more engaged will help them; This makes them to feel more controlled over their success and progress. Help people understand their own level of engagement and their ability to improve; this helps employees to improve their engagement levels and become more committed. Provide specific suggestion; this makes employees to take ownership and establish necessary changes of growth. Encourage innovation helping higher levels of engagement; this leads to joint ownership of engagement practices between employers and employees. Improve Employee communication to Management and Leadership teams; this raises motivation levels by giving them more recognitions and importance of contributions. Encourage self development of employees including career advancement options; this helps employees understand what leads to their growth and which indirectly helps in organizational growth. Encourage Mentoring concepts; this leads to leadership, initiation and collective growth concepts. Focus on developing relationship with employees based on trust, candor and care. Enable two communication systems creating understanding over leaders and team member‟s mutual contributions and feedbacks. Develop and rely on fair and transparent appraisal mechanisms. Provide employees with ongoing and positive/critical feedback. Ensure the connectivity and match between employee skills set to their job descriptions. Enable role clarity and specific goals to all the employees. Connect Employee Value contributions to Employee Value expectations. Communicate the purpose of Job creating passion in employees. Pay fairly which should play fairly to employees.
Employee Expectations driving Employee Engagement Employees expect few aspects which they feel to be basic amenities at work place. They are as follows, a. b. c. d. e. Psychological meaningfulness towards Job Profile, Roles and Responsibilities. Safety towards freedom to express their ideology at workplace. Resource availability and support to improve and enable their performance at work place. Transparency in vision, mission, communication and performance assessment aspects. Connectivity between policies and practices to core strategic goals.
A Rule book of Employee Engagement The study of employee engagement practices in various organizations gives out a common set of rules followed by various organizations while implementing the engagement practices. A consolidation of all such set of rules is the following rule book of employee engagement. Define Employee Engagement terms clearly. Ensure senior managers commitment to the full extent. Frame the set of principles to measure employee engagement identifying contributing factors. Recognize, reward and celebrate contributions. Freeze System, Actionable points and contributions in precise and specific manner. Keep line of communication and consultation an open and two way process. Collaborate with HR and respect their contribution and capacity in organizing human resources. Make engagement a phenomenon creating the understanding that it‟s a never ending journey. Link analytics and logic to engagement and its implications on business. Make it a habit to reward and recognize the Human Capital. Implementing Engagement: High Involvement Work Practices Numerous authors have developed a long list of management practices for generating high involvement and high performance among employees. These range from selecting the right people for the organization to a commitment to training and skill development, team based work organization, job security, and incentive-based pay. In each of these general categories, a variety of specific practices have been developed. For example, incentive-based pay can take the form of a gain-sharing program, performance-contingent pay to individuals, team-based pay, or employee ownership. Training programs can be developed for current and future skills, technical and interpersonal skills, new hires and experienced employees. With all of the choices, developing a coherent set of high-involvement work practices that are consistent across the organization and reinforce each other is a nontrivial challenge for all managers. Organizational
effectiveness scholar Edward Lawler and his colleagues identified four interlocking principles for building a high-involvement work system that help to ensure that the system will be effective and that the various practices will work together to have a positive impact on employee engagement. These principles can be summed up as providing employees with power, information, knowledge and rewards. Factors Driving High Involvement Work Practices Power: power refers to the decision making power that employees have towards their performance parameters and quality of work life. Power here can also be defined as the accountability designated to an employee over the role and the freedom he has to perform in an optimum manner to serve the accountability. Power and involvement are directly proportional attributes, hence as the power (freedom of operation) of employees increase so would their involvement in their job increases and hence they become highly engaged to their work and organization. Knowledge: knowledge here refers to employee skills and abilities that can be distinguished from information, which is the data employees use to make decisions and take action. Improving employees' knowledge means a commitment to training and development. The training investments are essential in a high- involvement organization because when employees are making important workplace decisions, it is important that they have the skills and abilities to make the right decisions. When employees feel their improvisation of standards at work place their motivation levels grow up and hence this would lead to more engagement to their work and organization. Rewards: The rewards component of the high-involvement equation means rewarding employees for expending discretionary effort to enhance organizational performance. A key element in the high-involvement equation, rewards for performance ensure that employees use their power, information and knowledge for the good of the firm. Strong statistical evidences prove that these factors have influenced the involvement of employees to their jobs and made them engaged to the work and organizations. Focus on these parameters lead to high performance and low retention in such organization. Various international surveys indicate the demand for High involvement work practices in Western countries leading to high growth rates of organizations. Many researches taken up in US and Canada proved the usage and impacts of High Involvement work practices on Employee Engagement and organizational growth. Inspired with these successes today globally many organizations tend to implement these High involvement work practices to increase the productivity and engagement levels of the employees leading employee growth and organizational growth as well. This also proves that Power, Knowledge and Rewards definitely have motivation and psychological impact on employee and organizational performance.
Table of Analysis:
Factor Analysis
Total Variance Explained Component Initial Eigen values % of Variance 18.963 13.060 10.940 10.049 9.456 7.887 6.861 6.666 6.066 5.001 4.293 .758 Cumulative % 18.963 32.023 42.963 53.012 62.469 70.356 77.217 83.882 89.948 94.949 99.242 100.000 Extraction Sums of Squared Loadings % of Variance 18.963 13.060 10.940 10.049 9.456 Cumulative % 18.963 32.023 42.963 53.012 62.469
Rotation Sums of Squared Loadings % of Variance 18.290 12.291 11.722 10.093 10.072 Cumulative % 18.290 30.582 42.304 52.397 62.469
Total 1 2 3 4 5 6 7 8 9 10 11 12 2.276 1.567 1.313 1.206 1.135 .946 .823 .800 .728 .600 .515 .091
Total 2.276 1.567 1.313 1.206 1.135
Total 2.195 1.475 1.407 1.211 1.209
Extraction Method: Principal Component
Particulars
Performance Appraisal Compensation & Benefits Work culture Ambience Working Hours/ shifts Monitoring system Training & Development Job rotation Support towards innovation Job profile Code of conduct Emloyee Satisfaction Table Name: Rotated component matrix
1 -.001 -.173 -.057 .480 .003 .413 -.040 -.064 -.021 .038 .939 .933
2 .806 .574 -.048 -.113 -.412 .236 -.024 -.084 .036 .488 -.093 .007
Component 3 -.098 .354 -.041 -.390 .592 .277 -.057 -.172 .765 -.267 -.040 .002
4 -.002 -.144 .221 -.354 .031 -.008 .883 -.368 -.058 .310 .022 -.007
5 -.028 -.043 .754 .042 -.082 .490 .041 .620 -.017 .006 -.053 -.011
Findings of the Study 78% of the top Management employees opinions indicates that engagement practices implemented at their organizations lead to increased Employee Productivity. 89% employees accepted that their increased satisfaction levels have reduced their Absenteeism and have motivated them to be present at organization to maximum extent. 72% of managerial role employees opined that engagement practices lead to reduction in undesirable turnout of Employees Engagement leads to motivation and hence proves emotional commitment of employees towards their job and organization was accepted by 72% of respondents. Creates a together battle ground for employees and employers, this statement was accepted by 68% of respondents. 74% of respondents felt that increased communication levels will lead to Reduced Skepticism of employees. 82% of the respondents felt that Challenging work promotes higher levels of involvement of employees and hence engagement. 69% of the respondents felt that decision making authority or power provided to employees will increase their involvement levels to their job and hence more commitment to organization. 86% of the respondents felt that employee engagement practices leading to the improvisation of employees‟ profile, skill set and quality of work life portrays Senior management‟s commitment in employee‟s well-being. 67% of the respondents felt that employee engagement practices lead to Collaborative Work Environment 72% of the respondents felt that equipping them with right resources give them leverage to be more productive and hence would make them to get the job done with more commitment. 52% of the respondents felt that the employee engagement practices would indicate the company‟s care and concern for employees. 68% of the respondents felt that fairness at work at all hierarchical levels improves motivation levels of employees and hence leads to higher levels of engagement. “Rewards and incentive practices would lead to feelings of accomplishment”, this statement is accepted by 83% of the respondents. 59% of the respondents felt appreciation of ideas and freedom of innovation helps to increase the employee motivation levels. The analytical findings support the null hypothesis indicating that employee engagement practices have impact on employee motivation. Factor Analysis suggests that Work Culture, Support towards innovation, Training and Development and performance appraisal are the key factors that needs to be focused for higher levels of employee engagement and their satisfaction.
The Factor analysis also suggests that employee engagement practices lead to employee satisfaction and hence to their retention. Hence, it proves the H20 Null hypothesis being accepted. Above finding of Factor Analysis indicates that there is a significant impact of Employee engagement practices towards Employee motivation and hence the Null Hypothesis H10 is accepted. Conclusion: The empirical study gives an exposure and insight into the concept of employee engagement and its impact on employee satisfaction and motivation. This study gave out an ultimate understanding that employees are internal customers and their satisfaction is key for organizational growth. Human resources are to be treated as Talent pool who acts as Human capital to organization‟s returns. They are no more treated as compensated work force but as a committed and collaborative working partner in all traits of business. This study also comprehended the need for high involvement work practices that leads to higher levels of employee engagement and motivation. This article also created an understanding that western part of the world has grown more productive and leads to growth of organizations due to the high involvement work practices. Respondents opined that employee engagement practices also indicate the commitment of organization towards its employees. Respondents also opined that clear communication and transparency would lead to more liberty to employees and will gives out more productivity. The statistical analysis proved both the null hypothesis to be true by indicating the prominence of Employee engagement by stating that Employee engagement practice leads to employee motivation, Satisfaction and hence helps them to get retained in the organizations they work. This also helps the study to conclude that Employee engagement practices lead to happier organizations and financially flourishing organizations. This study also made it evident that improvisation of employees through training and development would increase their motivation levels and decrease the absenteeism of employees. This study concludes by stating that employee engagement practices along with high involvement work practices lead to reduced employee turnout giving rise to employee motivation and employee retention. References: Jose Luis Romero: Improving Employee Engagement, Aspen Publishers.(ISSN: 10600434 USPS 017461) Malcolm Higgs: Building Employee Engagement, Henley Manager Update, Vol.87, No.2, Braybrooke press ltd. Alan Crozier: Engagement and enriched,Communication World, ABC Publishers, www.iabc.com,sept.2010 Alison M.Konrad: Engaging Employees through high-involvement work practices, Ivey Business Journal, March - 2006.
Mark Brown: Engage your people, Smart Business Network, June-2011. Steve Bates: Getting Engages,HR Magazine, Februrary, 2004. Christopher Bones: Engagement is at the heart of a successful m&A, Ivey Business Journal, jan-2007. John Bisaha & rick Bizzard: Employee Engagement Higher at Religious Hospitals, GPNS, Aug -2005. The Employee Engagement Report 2012. William H. Macey, Benjamin Schneider, Karen M. Barbera, Employee engagement: tools for analysis, practice, and competitive advantage, Pearson,2009. Brad Federman: Employee Engagement, 2009. Dr. C. R. Kothari: Research methodology: methods and technique,2008.
