Professional Documents
Culture Documents
Prakriti Sarkar
Vishal Pandey
FMS, Delhi
Contact No:9619224651
Contents
1. Introduction..............................................................................................................................3
2. Engaged Employee...................................................................................................................3
2.1 Employee Satisfaction..............................................................................................................4
2.2 Employee Loyalty....................................................................................................................4
2.3 Compensation...........................................................................................................................4
2.4 Self Motivation.........................................................................................................................4
3. Modes for Employee Engagement...........................................................................................6
4. Levels of Engagement..............................................................................................................7
5. Competitive Advantages..........................................................................................................7
5.1 Lesser Attrition rate............................................................................................................7
5.2 Engagement as a Driver for Organisation Success............................................................8
5.3 Higher Productivity............................................................................................................8
5.5 Better Performance.............................................................................................................8
5.6 Improved Customer Loyalty..............................................................................................8
5.7 Boosts Business Growth.....................................................................................................9
Group Integration Model
6. Plant Level Model and Structure of Implementation..................................................................9
6.1. Role of Area Effectiveness Team....................................................................................11
6.2 Role of Worker Engagement Teams................................................................................12
6.3 Role of Pillar Teams.........................................................................................................12
6.4 Integration Manufacturing Excellence and Employee Engagement................................13
6.5 Reward and Recognition Policy......................................................................................14
7. Corporate Level Model..............................................................................................................14
7.1 Role of Service Engagement Teams................................................................................15
8.Conclusion..................................................................................................................................16
Appendix I ....................................................................................................................................17
Appendix II....................................................................................................................................19
References......................................................................................................................................22
Abstract:
Employee engagement is the level of commitment and involvement an employee has towards
their organization and its values. An engaged employee is aware of business context, and works
with colleagues to improve performance within the job for the benefit of the organization. It is a
positive attitude held by the employees towards the organization and its values. The paper
focuses on how employee engagement is an antecedent of job involvement and what should
company do to make the employees engaged. We believe that departments within any Indian
MNC are dependent on each other but not integrated to each other , they work as if they are
working in separate silo’s , with this paper we tried to overcome this work culture by developing
concept of Area Effectiveness Teams and Workers Engagement Teams etc in People
Engagement- Asset Engagement-Process Engagement Model . We also developed the sustenance
mechanism of our model and analyses the role of Management to make this model fruitful
1. Introduction
Employee engagement is a state of emotional and intellectual involvement that an employee has
in his or her organization. It refers to the ‘voluntary efforts’ employees are ready to put into their
work, to achieve the organisation’s objectives. There is a strong and link between engagement
and various performance measures including retention, customer satisfaction, performance and
ultimately higher productivity and better business results. Simply put, employee engagement is
about getting employees “give it their all” 1
Recruiting good talent is just the first step towards organizational success. But retaining the
employees and making them deliver their maximum is the key to organizational success. The
success of organisation requires the active and willing participation of organisation’s workforce.
1
Human Capital, August 2005, Engagement for the mind, body and soul
An engaged employee is aware of business context, and works with colleagues to improve
performance within the job for the benefit of the organization. Developments and sustenance of
this positive attitude translates into business gains.
The essence of employee engagement is to provide a positive environment where employees are
free to contribute and more importantly desire to contribute more of their energy, efforts and
thought processes in ways that significantly and favourably impact the goals of the organization.2
Engaging employees is crucial for truly talented people or the High Potential Employees who are
likely to take up leadership roles in the future. Engaging the High Potential employees needs to
be an organizational priority, because they are by definition precious possessions for the
organization. They are more likely to move on to another organization if they don't feel that the
current one meets their demanding needs for job satisfaction, purpose and sense of self-worth.
2. Engaged Employee
Engaged Employees are those who go beyond the expectations and bring the full range of their
abilities and creative potential to the enterprise. Such engaged employees beget satisfied
customers. This in turn improves the profitability of the organisation.
To understand the need of employees in the context of employee engagement, we require to look
at how the following traditional concepts.
Employee satisfaction is a measure of how happy employees are with their work and
environment. Keeping employee morale high can be of tremendous benefit to any organization,
as satisfied people are more likely to produce more results, take fewer days off, and stay loyal to
the organization. The backbone of employee satisfaction is respect for workers and the job they
perform. In every interaction with management, employees should be treated with courtesy and
interest. Even if management cannot meet all the demands of employees, showing them that they
are being heard and putting honest dedication into compromising will often help to improve
morale.
There are many factors in improving or maintaining high employee satisfaction. One of the best
ways to maintain employee satisfaction is to make employees feel like part of a family or team.
Many organizations participate in team-building retreats that are designed to strengthen the
working relationship of the employees in a non-work related setting.
2
Human Resources Partnership, Inc. Engagement By Michael Kalinowski
However, it should be noted that satisfied employees need not necessarily produce the type of
performance that help organisations to succeed. Satisfaction is the minimum that is required, but
engagement brings a person to unleashing his talents and deliver measurably to improved
performance.
Employee loyalty does not always lead to high performance. Being engaged is about more than
being loyal to a company. Being loyal to the company could mean that they may never quit. But
that does not necessarily mean that they are showing engaged levels of productivity.
2.3 Compensation
The traditional way of expecting of high commitment from employees is by high providing high
remuneration. But this concept is no longer relevant in its original form. As explained in
Herzberg’s two factor theory of motivation, money is a hygiene factor and not motivator, i.e. its
absence or lack of it may lead to de-motivation but its presence may not necessarily motivate an
employee to give his 100%.
In practice, people are more likely to be swayed by a range of other, nonfinancial, factors when
deciding where they will work. This is particularly true of really talented people, who tend to
have a good idea of the market rate they can command and will be looking for a prospective
employer who can offer this and other advantages.
There is a general perception that some people are self motivators while others are not. So, hiring
such self motivators could be beneficial for the organization. But various survey results show
that people’s engagement at work is dependent on their experiences in the organisation. So, even
if a person is naturally self motivating, keeping the person engaged at work would depend on his
experiences.
Engagement is thus a two way process: organisations must work to engage the employees, who
in turn have a choice about the level of engagement to offer to the employer.3
Thus, the key behavioural aspects that HR professional should search for in an engaged
employee are
Herzberg reasoned that because the factors causing satisfaction are different from those causing
dissatisfaction, the two feelings cannot simply be treated as opposites of one another. The
opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. He classified the
various factors under two heads:
Motivation Factor
Hygiene Factor
Hygiene factors are needed to ensure an employee does not become dissatisfied. They do not
lead to higher levels of motivation, but without them there is dissatisfaction.
Motivation factors are needed in order to motivate an employee into higher performance. These
factors result from internal generators in employees.
HR Consultant Hewitt has classified the drivers of Employee Engagement into six groups -
People, work, total rewards, opportunities, company practices and quality of life. Together they
drive engagement and it is portrayed by three key behaviors in employees. The behaviors that
indicate strong engagement are:
4. Levels of Engagement
1. Not Engaged
Actively disengaged employees are those who are not only unhappy about the work but they
undermine the efforts of others around. Their disengaged attitude may create tension and
problem among other workers who are dependent on such employees for completion of the team
assignments.
3. Actively engaged
Engaged employees as discussed before are people who wish to exceed their roles and are
always ready to help their colleagues. They work with passion and drive innovation and move
the organisation forward. Career opportunities, awards and recognition are examples of
motivation factors.
5. Competitive Advantages
Engaged employees tend to stay in the organisation much longer as compared to the non-
engaged employees. Engaged Employees by staying longer in the company become the Brand
Ambassadors of the company advocating its policies and work environment and thereby building
a positive environment. It gradually becomes a spiralling effect and leads to more people getting
engaged with the organisation and its goals. So in today’s highly globalised marketplace where
society and business are witnessing unprecedented change, many companies would be competing
for the same talent workforce. It makes sense for the organisations to look at ways to reduce
attrition by engaging talent.
Engaged Employees work harder and are more likely to go that ‘extra mile’ for the organisation.
These Employees have a very positive feeling about their company which is reflected in the
quality and the amount of effort they put in their work. It is also seen that people who are highly
involved in their work processes tend to be more engaged.
When the employees have the power to make decision related to their performance, can access
information about the cost and revenue, and have the necessary knowledge, training and
development to do their jobs and are rewarded for their efforts, they tend to put in more effort
and be more productive. For example, a recent study that analysed 132 U.S Manufacturing Firms
found that companies using high performance work systems had significantly higher labour
productivity than their competitors.
5.4 Savings for the Organisation
According to the report by SHRM Foundation, employee engagement can be measured and can
yield significant savings. For example, at the beverage company of Molson Coors, it was found
that an engaged employee was five times less likely to have a safety incident and seven times
less likely to have lost-time safety incident as compared to a non-engaged employee.
Considering the average cost of safety incident for an engaged employee to be $64, the company
saved around $1,721,760 in safety costs alone in 2002. In addition, savings were found in sales
performance teams through engagement. The difference in performance-related costs between
high and low Engagement Teams totalled around $2,104,823.
The Employee’s emotional commitment to the job and the organization is key for engagement.
The degree and quality of the performance depends on the level of Emotional Commitment- the
extent to which an employee derives enjoyment, meaning, pride or inspiration from something or
someone in the organisation. This is a significant variable in engagement and thus in the
performance. Emotional Commitment to the job, organisation, team and manager has been found
to determine stronger performance than rational commitment. The extent to which an employee
feels that someone or something within the company provides development, financial or
professional rewards in employee’s best interest leads to better performance.
An engaged employee forms a stronger Emotion Connect with the company as compared to the
non-engaged employees. This impacts their attitude towards the clients.
When Employees feel more engaged to their work, the climate is better for service and customer
receives better quality services, thus promoting Customer Loyalty. Thus service organisations
like banks, hotels etc. must focus more on keeping the employees engaged as these engaged
employees tend to more professional yet humane in their approach towards the clients. They go
to the maximum possible level as they feel attached to the company and thereby increase the
customer satisfaction leading to increase in the overall revenue of the company.
Global studies suggest that there are three basic aspects of employee engagement:
1. The employers and their ability to create the conditions that promote employee
engagement.
2. Interaction between employees at all levels.
Our suggested model based on the assumption that generally in manufacturing
company various departments are dependent to each other but not integrated to each
other .So we sensed in work different silo’s in the same organisation so, make them
more engaged and empowered we have suggested the following Model.
Big Conglomerate like Essar and Reliance which are transforming from Business to Business to
Business to Customer can follow the Employee Engagement Model to define its all key
performance indicators as per the suggested model. Any organization which manufactures and
sells the products has three major areas which can be engaged to each other
1. People Engagement
2. Process Engagement
3. Assets Engagement
“Process Engagement - Asset Engagement - People Engagement” Model supports the
entire journey from initial Physical Transformation to Competitive Differentiation with
Sustainability to World Class Employee Engagement.
Asset Engagement
• Quality
• Daily Work Reliability • Line Efficiency
management • On Time Performance
• Breakdown Reduction • New Product
• Housekeeping
Development
• Line Speed
• Technology
Ownership
People Engagement
• Leadership Development
• Mass Education
• Quality Certification
• KRA Linkage
• Reward and Recognition
6.1 Area Effectiveness Teams:
Human Resource Team uses a unique daily management structure to implement the entire
initiative. The entire plant will be divided into logical areas and each area will have an “Area
Process Engagement
Effectiveness Team (AET)”. The People Engagement for the entire plant would be driven
through these AETs. An AET will comprise of supervisors from related functions and a few
senior operators and will be lead by the area-head. For example for a steel industry Blast
Furnace, Corex Plant, Steel Melting Plant, Compact Strip Plant, Pellet Plant, Beneficiation Plant
can be AETs. Role of the AETs will be:
1. Area Key Performance Indicator
Employee improvement
2. Improve process performance
Engagement
3. Equipment condition improvement
4. Setting up daily asset care practices Sustenance
5. Improving equipment maintenance practices
6. Daily problem analysis
7. Improve skill levels
AETs will meet for about 20 minutes every day at the shop floor around an AET Board that will
display performance of AET
“Employee Engagement” will involve all 100% of the people on the shop floor and cover
the entire area in the factor
AET* 1 AET 2
WET* WET
Zone 1 Zone 2
AET 4 AET 5
AET 3 WET WET
Zone 3 Zone 4
AET 6
AETs will be further divided into smaller zones called “WET Zones” where WET Teams
would be created. WET will consist of workmen and line supervisors of the shift. E.g. in Hot
End for each Machine there will be WET teams for each shift. Role of WET teams will be:
1. Identify and eliminate abnormalities
2. Daily cleaning, lubrication, tightening, inspection (CLTI)
3. Monitor & control key process input and output parameters
4. Housekeeping
WETs will work together for about 10-15 minutes per shift to take care of daily WET activities.
SAFAI
SUVYAWASTH
SANYAM
SAMWARA
SWACHACHATA
At the company level, 3-4 Pillar Teams will be formed to drive organization wide initiatives and
build common approach across the plants & lines. E.g. Planned Maintenance, Skill
Development, KAIZEN, Furnace Management etc. can be pillar teams. Each pillar will be
headed by a senior manager (Pillar Champion). The AETs where a particular Pillar initiative is
being done will have a member in that Pillar team. Thus a Pillar team will comprise of
representatives from various AETs. The pillar team will bring about improvements through the
AET & WET. Role of the Pillar Team will be:
1. Consolidate best practices across the plants and implement them through AETs & WETs
2. Define common approach to be implemented across the AETs like skill development,
Planned maintenance
3. Define common policies and procedure
4. Identify improvement areas and projects
5. Track performance of their chosen mission through common measurement systems
The Pillar Teams will be launched after AETs get matured normally after 10-12 months. The
Pillar Teams will meet once in 2-3 weeks for about 2 hours.
STEERING TEAM
PRODUCTION
MANAGER PILLAR TEAM
MAINTIANCE INSPECTOR
ENGINEER AREA EFFECTIVENESS TEAM
WET
SUPERVISORS
MAINTAINAC TRAINER
FACILITATOR PROCESS
OPERATO E
CHEMIST
The suggested Employee Engagement Structure can be driven through a definite group of people
which can be termed as changed agents. As Essar Group has already adopted the initiative of
manufacturing excellence, the entire journey can driven by a team called Manufacturing
Excellence Team or the model if adopted in corporate office than the Business Excellence team
has to be formed to drive this initiative .
To make this model effective it has to be driven by performance matrix of the organisation. All
the teams like Area Effectiveness Teams and Worker Engagement Teams has to be audited
monthly by external or internal auditors for various engagement level .Generally world class
organisations follows 5 levels and to achieve every level teams have to score 80% through
external audit which is conducted once a year. So the minimum time a organisation take to attain
5 levels of employee engagement is 5 years. More over performance of AETs, WETs, Pillar
Teams and Manufacturing Excellence teams has to be link with the Key Result Areas of the
various individuals .Checklist for audit is attached as appendix I for AET and Appendix 2 for
WET.
Su
st
en
an
ce
Constitution of SET
1. Functional team comprising of all members from the concerned function
2. Permanent in nature
3. Focus on improving the functional processes
4. Meet once in a week to discuss progress of all initiatives, problems / issues in
respective function
Role of SET
1. Tracking & Analysis of Key Performance Indicators for every transaction
2. Bring improvements through focused improvement projects
3. Deploy the Business Strategy in respective functions using X Matrix
4. Define the purpose of the function and adhere to “Service Level Agreements”
5. Continuously improve the service levels
6. Upkeep of the place occupied by the function
Rest of the structure can be same as that of the Model adopted at the plant level.
Conclusion:
APENDIX I: Area Effectiveness Team Level 1 Audit Sheet
S
N Review Point Criterion for Scoring
o
TOTAL
§ Each Point maximum score is 5
§ Unless the criterion for lower score is met, higher score cannot be given
APPENDIX II: Area Effectiveness Team - L 2 - Audit Check list
Criterion / Logic for Scoring:
1. Systems in place with no plans to address
2. Systems in place but Weak and Deficient
3. Able to meet Departmental Plant Goals and there are plans to improve
4. Well Defined, executed and understood
5. Well Defined with a track record of meeting expectations
Sr
N Review Point Criterion for Scoring
o
1 AET board is not updated, Items lying scattered all around,
Abnormality identification not done
2 AET board is Live & Update with trends related to all KPIs ,
area is free of unwanted material, Abnormality identification is
a continuous process in the area
3 Action plan available to meet targets and is displayed on
Team
1 board, Plan for PEEP (90% completion), Repetitive
effectiveness
abnormalities identified
4 Adequate progress as per plan > 70 %, Abnormalities
removed > 90%, Visual Controls for “Preventive Set In Order”
in place for all areas
5 No Pending abnormalities, Detailed analysis on trends of
progress V/s targets done and actions completed > 90 %
2 Team Elements ( Each point hold 1 marks)
Average attendance of last two months of AET members in the
meeting is >80%
SPL, Visual Controls & Visual Displays are used at appropriate
effectiveness places in the work area & it’s a continual process
& Employee
Attendance of members in DMAIC / FIP more than 80 %
engagement
Regular interaction between AET & WET members
HODs / Area owners should certified AET and WET activity
weekly basis
1. No Awarness about X-Matrix , X-Matrix has been deployed to set AET
targets & action plans are prepared for adherence
2.Regular review of X-Matrix
3 X- Matrix
3. There is 50 % adherence to the X-Matrix Action points
4. There is 80 % adherence to the X-Matrix Action points
5. There is 100 % adherence to the X-Matrix Action points
1. There is system in place to track KPIs of major processes
2. KPIs have been defined for all the areas, KPI targets updated
KPI as per the performance
4
achievement 3. Adherence to targets is more than 60%
4. Adherence to targets is more than 85%
5. All KPIs targets are achieved
1. There is no system for selection of focused improvement
projects & sustenance of previous DMAIC/FIP projects by AETs
2. Replication Potential of DMAIC & Focused improvement
projects have been identified in structured manner for
respective area.
5 FIP / DMAIC 3. Projects have been prioritized, & at least 50% of the projects
have been completed on schedule
4. At least 75% of the targets are achieved for all completed
individual projects
5. At least 90% of the targets have been achieved for individual
projects
1.There is no system in place for review of failure analysis. No
standards available.
2. Standards have been prepared & implemented along with
Product & review mechanism. and System of Root Cause Analysis
Process deployment is done.
6
Quality 3. Deployment of FMEA / OEE is done for processes &
improvement equipments. Review mechanism is in place.
4. There is a improvement trend in RPNs and OEE
5. There is deployment of FMEA / OEE for the revision of
standards for all critical equipments / processes
1. Planned Maintenance schedule for all the equipments is in
place
PM schedule 2.PM checklist for all equipments is defined and there is at least
7 Adherence & 25% adherence to the PM schedule
Effectiveness 3.PM schedule adherence level is more than 50% and PM
schedule & checklist are being refined continuously based on
the performance of the equipments and overall breakdown level
4. Adherence to PM schedule is more than 75%, improving
trend in stoppages for critical equipments is seen & there is an
overall reduction in number of notifications
5. Adherence to PM schedule is more than 90% & predictive
maintenance system (including identification of Predictive
Maintenance measures & frequency) has been initiated
1. Average WET audit score of zones under AET is less than
50%.
2. 50% of WET zones score more than 60% marks in the last
two WET audit
3. All WET zones score more than 60% marks in the last two
8 WET Teams
WET audit
4. All WET zones score more than 70% marks in the last two
WET audit
5. All WET zones score more than 80% marks in the last two
WET audit
1. Training areas for Safety / Hygiene are identified and
training plan is prepared for AET & WET Members
2. Training is given to 50% of WET members by AET members
Safety /
Hygiene 3. Training is given to 75% of WET members by AET members
9
effective & training effectiveness is more than 50%
Training 4. 10% of the AET & WET members have gone through First Aid
& Safety level 2 training
5. Training effectiveness is more than 90%. Mockdrills &
effectiveness is being continuously monitored
1. Training plan is prepared for AET & WET Members &
displayed on the AET board.
2. Training is given to 50% of AET & WET members. Kaizen
Kaizen
movement started in the respective area.
10 (Training /
3. Training is given to 80% of AET & WET members. Kaizen
Activities)
movement started in the respective area.
4. 10 Kaizens per month from AET & Each WET Zone.
5. 1 Kaizen per day from AET & Each WET Zone.
REFERENCES:
Archie Thomas, CMA, and Ann MacDi anmid – Encouraging Employee Engagement –
CMA Management, Jun/Jul 2004.
Ashok Mukherjee – Engagement for the mind body, and soul – Human Capital, Aug.
2005.
Beverly Kaye and Sharon Jordan Evans – From Assets to Investors – Training and
Development – Apr 2003.