Employee engagement and its effects on the organisation performance

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Introduction

The following report aims to cover the concept of employee engagement and its effects on the organisational performance. The study provides a brief discussion of the practices used by managers for improving the employee engagement level and the effects of these practices be also discussed.

The objectives of this study are to analyse the relationship between employee engagement level and the performance outcomes of the organisation. ABC organisation is selected, which provides health services to the customers and several performance management techniques are used by the managers for increasing the employee engagement level.

The on the job and off the job training programs are used by the management for improving the skills of employees to perform quality services. However, it is important that the training programs should be provided to the physicians as well who monitor the activities of staff working under them.

They can play an important role in improving the employee satisfaction level by motivating and recognising them efficiently.

Literature review

Impact of Employee engagement on organisational performance

Bakker and Bal (2010) illustrated that Employee engagement is vital for improving the efficiency level of employees and effective relationship between employees and organization is necessary.

An “engaged employee” is known as the one who is fully absorbed in the organisation and work enthusiastically to play an influential role in building organization’s interests and reputation.Employee engagement and its effects on the organisation performance

Another definition provided by Mone et al. (2011), shows that employee engagement is referred sense of purpose in employees of the workforce, which depicts personal initiative and efforts of employees for achieving the organizational goals.

According to the study conducted by Bakker and Demerouti (2007), organisational resources plays an imperative role in the service climate and among these resources, employees are considered as the core element.

The study shows that work engagement of employees can directly affect the service quality and enhance the positive experiences of the customer. The reason is that highly engaged employees share their perceptions regarding the service quality within their own operational division and performance well to increase the value of service in front of the customer.

The higher engagement level of employees enables them to build positive interactive relationships with the customers and the increase in strong interaction level among them increases the customer loyalty.

The fact was also supported by the study of Kompaso and Sridevi (2010), depicting that Employee engagement can positively influence the employee performance level.Employee engagement and its effects on the organisation performance

However, it has been assessed that the practices of Human resource management plays an important role and they should use five practices for increasing the employee engagement and performance level.

These five factors include aligning the efforts with strategy, Empowering Promoting and encouraging teamwork and coordination level among employees, Helping others to grow and develop and Providing recognition where required.

These practices enable the employees to increase their engagement level in the organisation and improve the working performance to keep aligned for the achievement of organisational strategies. This positively effects on increasing the organisational performance.

Employee engagement as a source of participation and commitment

As per the study conducted by Gruman and Saks (2011), employee engagement is necessary to meet or improve the performance agreement. The framework of the study illustrated below shows that Appraisals and feedback conducted by HRM managers can directly affect to increase the engagement level, as these practices aim to increase the participation level of employees.

It has been depicted that based on performance appraisals, managers use appropriate motivational techniques. These include increasing the benefits, salaries and compensation provided to employees; this increases the satisfaction level of employees and increases their participation level, which enables them to participate with the managers for achieving the common goals of the organisation.

On the contrary, the study conducted by Truss (2013), organisations who use punishments to reinforce positive behaviour of employees can seek disengagement of employees as well. The reason is that employees feel demotivated to work in the organisation.

Figure 1: Employee engagement and employee participation. (Source; Gruman and Saks, 2011).

According to Adena (2017), Adena health system is ranked as first among in the Gallup Employee Engagement list of best employee engagement practices. The main reason behind this factor is the employee engagement strategy employed by the organisation.

Adena health system conducts employee enjoyment program which is focused on four resolutions, which includes Establish a weekly goal for your team, Practice gratitude, Pursue and provide more professional development opportunities and Commit to Sustainability.

These four resolutions have increased the coordination and collaboration among the teams to provide the quality services. Effective communication techniques, training and development programs, as well as motivational tools, have enabled the Adena Health system to attain its employee engagement strategies and achieved the competitive advantage in the industry.

The same type of HR practices are also used by CarMax and the employee engagement is one of the factors, which has enabled the company to maintain its corporate performance even at the adverse situation of the recession time.

The management is strongly focused on increasing the employee involvement level, due to which it has produced many innovative and advanced products. The reason is that company have employed appropriate labour laws to safeguard the rights of employees. The employee engagement survey shows that almost…..