Overview
As per Aktar (2019), Employee Performance is defined as either
financial or non-financial outcomes of an employee that will affect the
organization's ability to successfully achieve its goals. Also, it
describes employee engagement and its direct relation to performance and
measurement from various perspectives such as satisfaction, teamwork, innovations, attrition, commitment to
assigned work, loyalty to the organization. On the other hand, Shantz et al.,
(2013) have used a multi-dimensional approach in measuring employee performance
by assessing employee engagement in three main perspectives in the form of,
work performance, organizational loyalty, and malicious intent.
Rich et al. (2010) has also suggested that employees' behavior not
only in the associated role but also in employee's proactive contribution
outside of the role should be taken into account when associating employee
engagement with an employee's performance. An employee's proactive
contributions can be explained as going beyond the assigned role and the tasks
associating by been innovative, applying new strategies to achieve an efficient
output, and also factors in contributions to alternative organizations goals
(Fay and Sonnentag 2012).
Al-dalahmeh et al. (2018) has used the below
research model to analyze how employee engagement plays a vital dependent role
concerning employee performance.
Figure 1
Research Model:
Employee
engagement’s relationship with Organizational Performance
Based on the research performed it is evident
that employee engagement has a direct influence on an employee’s job
satisfaction, therefore having a significant contribution to the performance of
an employee. (Al-dalahmeh et al., 2018).
Practical application of the research model
Relating the above model to the organization which I work which is leading Information Technology services organization, our last year's annual employee satisfaction survey indicated a drop of 7 % in employee satisfaction. One of the main root causes outlined in that survey was that the employees feel, they are not aligned with the vision of the leadership and struggling to cope up with the challenging goals that have been set by the leadership as targets. On the other hand, the company’s NASDAQ stock prices indicated an annual drop of 9.3% (drop from $44.08 to $ 40.07) and also there was an increase in employee turnover and attrition rate.
We can use Al-dalahmeh et al. (2018)'s research model to explain
the above behaviors in my organization as the drop of employee engagement with
their leadership resulting in a decrease of extrinsic satisfaction factors,
therefore the organization suffering losses in financial performance. Bektas
(2017) has also explained how leadership plays a vital role as an extrinsic
satisfaction factor for employee satisfaction.
Conclusion
Employees are the core of any organization, like a fine-tuned
engine, the organization's workforce must function at full throttle with the
right amount of synergy towards achieving organizational goals one team. As we
discussed with multiple scenarios above and backed by various researchers it
shows that Employee engagement plays a significant role in having a highly
efficient, motivated and productive workforce.
References
Al-dalahmeh, M., Masa’deh, R., Abu Khalaf, R. and
Obeidat, B. (2018). The Effect of Employee Engagement on Organizational
Performance Via the Mediating Role of Job Satisfaction: The Case of IT
Employees in Jordanian Banking Sector. Modern Applied Science, [online] 12(6), p.17. Available at:
http://www.ccsenet.org/journal/index.php/mas/article/download/75309/41555
[Accessed 12 Aug. 2019].
Aktar, A. (2019). EMPLOYEE ENGAGEMENT:does it
matter for employee performance?. THE COST AND MANAGEMENT, [online] 44(4), pp.27-35. Available at:
https://pdfs.semanticscholar.org/6695/8b262e1685abdbcf137dec871e4af6ba2988.pdf
[Accessed 9 Aug. 2019].
BEKTAŞ, Ç. (2017). EXPLANATION OF INTRINSIC AND EXTRINSIC JOB
SATISFACTION VIA MIRROR MODEL. Business & Management Studies: An
International Journal, 5(3).
Fay, D., and Sonnentag, S. (2012), Within-Person Fluctuations of
Proactive Behavior: How Affect and Experienced Competence Regulate Work
Behavior. Human Performance, 25, 72- 93.
Rich, B., Lepine, J. and Crawford, E. (2010). Job
Engagement: Antecedents and Effects on Job Performance. Academy of Management Journal, [online] 53(3), pp.617-635.
Available at:
https://www.researchgate.net/publication/280294544_Job_Engagement_Antecedents_and_Effects_on_Job_Performance
[Accessed 9 Aug. 2019].
Shantz,A.,Alfes, K.,Truss, C., & Soane, E. (2013).The role of
employee engagement in the relationship between job design and task
performance, citizenship and deviant behaviours. The International Journal of
Human resource management, 24(13), 2608-2627.
26 Comments
I agree with above comments and further Employee engagement increases productivity, creates a better and productive work environment, and reduces employee turnover. Engaged employees want good communication with their superiors, work that has purpose for them and motivates them, and a safe working place. When these conditions are met, employees become engaged and as a result Organization will yield better financial results, employees will be proud of their organizations, and demonstrate enthusiasm (Caplan, 2013).
ReplyDeleteYes, as number of researches reveal performance is tightly coupled with employee engagement. Aon Hewitt (2015) study provides a lot of insight to this.
DeleteWhile you mentioned that leadership, or the lack of it, played a factor in loss of employee satisfaction in the company you work for, I would also like to add that another reason could be that employees don't feel connected to their peers. Research shows that only 27% of employees believe that their companies are actively involved with team building efforts. In addition, a negative culture within the company can also greatly affect employee engagement (Reynolds, 2017).
ReplyDeleteAbsolutely. It appears both horizontal (among peers) and vertical engagement (between superiors - subordinates) is vital. Connections and peer recognition (peer validation) is important driver that keeps employees motivated (thus resulting in higher performance. Singh (2019) discusses these employee engagement factors well. Also, just check this neat read that I came across: https://www.forbes.com/sites/danabrownlee/2019/08/25/peer-recognition-an-employee-engagement-secret-weapon/#2f0d72e65d40
DeleteAgreed. Employee performance represents the financial or non-financial results of an employee that are directly related to the effectiveness of the organization and its success. An important way to increase employee performance is to focus on increasing employee engagement, and many studies have shown that higher employee engagement increases productivity (Anitha, 2014).
ReplyDeleteYes, Rich, Lepine, and Crawford (2010) vividly explains this.
DeleteAgreed.In addition to the above, "VOI2C2E"(Vision, Opportunity,Incentive,Impact,Community,Communication,Experimentation) framework can be implemented by the leaders of an organization in order to increase the employee engagement (Storey et al,2008).
ReplyDeleteSerrano and Reichard (2011)’s study also reveals the importance of leaders working closely with their employees to define clear work goals and various strategies for achieving them. Expectations must be communicated very clearly, and employees must feel that they are not “setup for failure” as delegated tasks should match their skill profiles, and leaders must coach them to mitigate risks with suitable contingency plans.
DeleteAgreed. According to Gallup, employees who are highly engaged in their organization produce high levels of customer care,retention, productivity and generate higher profits (Luthans and Peterson, 2002).
ReplyDeleteYes, even Osborne and Hammoud (2017)'s research highlights the importance of employee engagement in enabling both organizational profitability and developing high levels of customer service skills amongst its employees.
DeleteWell said, In team work, the benefit is that different types of abilities and strengths are shared to do a job rather than an individual. This cannot be achieved by an individual (Jones et al, 2008).
ReplyDelete
DeleteOn a similar note, Serrano and Reichard (2011)’s study highlights the importance of enabling and rewarding a supportive work culture, where a positive and productive relationship between co-workers was established as a factor increasing employee engagement.
Agreed with the article while adding to this engage employee will have less chance to leave the organization where decree the organization turnover rate directly, employees are willing to work with more productively and customers become loyal to the organization by having great service from an engaged employee while loyal customers always gain the profit to the organization (Robertson-Smith and Markwick, 2009).
ReplyDeleteIn essence, engagement is about helping employees clearly identify themselves with the organization for which they work so they become more committed to a shared cause including customer satisfaction. Osabiya (2015)’s study explicitly highlights the importance of motivating and encouraging employees to feel this sense of belonging to the organization.
DeleteAgree with you according to Schaufeli and Bakker (2008) the effect of employee engagement is clearly visible in the organization performance, productivity, employee retention rate, organizational culture are some of the areas to be pointed out.
ReplyDeleteYes, and the benefits apply to many entities. Robertson-Smith and Markwick (2009)’s study highlights a number of positive outcomes which can be achieved with increased employee engagement, which focus on all key stakeholders - the organization, the customer and the employee.
DeleteHi Kanchana, the post outlines the positive contributions of employee engagement to workforce performance & overall, I would agree with the conclusion. However, it must be noted that a study conducted by Duran, Extremera and Rey (2004), concluded that there is a moderate level of correlation between engagement and employee burnout. Hence I believe it's critical that an organization keeps an eye out on it's highly engaged employees for any symptoms of the adverse effects of "too much engagement" such as employee burnout & lower work life balance. This would ensure that the organization can enjoy the benefits of engaged employees in a sustainable manner.
ReplyDeleteAgreed. Lewis and Chamorro-Premuzic (2016) also notes that employees who are too engaged can face difficulties in their personal lives and can perform actions which might reflect badly on the organization itself. Balance is important even in positive matters such as employee engagement.
DeleteDear Kanchana, as you mentioned earlier, Employee Engagement is a concept popular globally. As Patro (2013) explains, employee engagement takes place when they are satisfied with their jobs and they feel that the organization supports them and they are well taken cared of. This will enhance heir psychological contract with the organization and go the extra mile for the betterment of the organisation.
ReplyDeleteYes, Saks (2006) even correlates the engagement levels directly to the psychological state of the employee using Social Exchange Theory (SET). SET states a set of obligations created through continuous interactions between individuals/groups that operate in a condition of mutual interdependence. This relationship will evolve over time, with trust, loyalty and mutual commitment increasing, on the condition that the "rules" of exchange are not breached.
DeleteAgree with Kanchana,
ReplyDeleteAll other things being equal an engaged workforce provides competitive advantage over a rival company; this has become a widely held and uncontroversial view. However, opinions on engagement and what spurs engagement in today‟s workers differ. Organizations can extract „discretionary energy‟ that resides in their workforce. Employees can increase the probability of higher profitability, better services, customer loyalty, safety and sales by employing discretionary efforts in their work roles (Kruse, 2012).
As a matter of fact, employee engagement paves way to extract the discretionary energy within a workforce. Consider the following definition,
DeleteEngagement is the extent to which employees put discretionary effort into their work, beyond the required minimum to get the job done, in the form of extra time, brainpower or energy (Vance, 2006).
Hi Kanchana, in fact Development Dimensions International (DDI, 2005) states that a manager must do five things to create a highly engaged workforce. They are:
ReplyDelete- Align efforts with strategy
- Empower
- Promote and encourage teamwork and collaboration
- Help people grow and develop
- Provide support and recognition where appropriate
Agreed. According to Gallup, great managers have the talent to motivate employees and build genuine relationships with them.
DeleteNice work. In this covid-19 period, employees work remotely. In these conditions, the physical interaction of employees is nearly impossible. Online employees engagement activities for the work-from-home employees is the only option foremployees engagement.
ReplyDeleteEngaged employees care for the company, they’re not simply working for salary and promotions but they also work effectively and efficiently for the growth of the company. Online employee engagement activities have become the most popular topic for leaders and HR professionals, because of the pandemic conditions.
ReplyDelete