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LITERATURE REVIEW EMPLOYEE ENGAGEMENT An organizati on’s productivity is measured not in terms of employee satisfaction but in terms of employee

engagement. Employees are said to be engaged when they show a positive attitude towards the organization and express a commitment to remain with the organization. It is the level of commitment and involvement an employee has towards the organization and its values. An engaged employee is aware of the business context and works with colleagues to improve performance within the job for the benefit of the organization. E n g a g e m e n t a t w o r k w a s conceptualized by Kahn (1990) as the harnessing of organizational members’ selves to their work roles. In engagement people employ and express themselves physically, cognitively and emotionally during role performances. T h e s e c o n d r e l a t e d c o n s t r u c t t o e n g a g e m e n t i n o r g a n i z a t i o n a l behaviour is the notion of flow advanced by Csikszentmihalyi (1975).He defines ‘Flow’ as the holistic sensation that people feel when they act with total involvement .Flow is the state in which there is little d i s t i n c t i o n between the self and environment. When individuals are in flow state little conscious control is necessary for their actions. Employee engagement is thus the level of commitment and involvement an employee has towards their organization and its value. The organization must work to develop and

Nurture engagement which requires a two way r e l a t i o n s h i p b e t w e e n employer and employee. Thus employee engagement a barometer that determines the association of a person with the organization. Engagement is most closely associated with the existing construction of ‘Job Involvement’, Brown (1996).Job Involvement is defined as the degree t o w h i c h t h e j o b s i t u a t i o n i s c e n t r a l t o t h e p e r s o n a n d h i s / h e r i d e n t i t y . Kanungo (1982) maintained that job involvement is thought to depend on need saliency and the potential of a job to satisfy these needs. Thus job involvement results from a cognitive judgement about the need satisfying abilities of the job. Jobs in this view are tied to one’s self image. Furthermore engagement entails the active use of emotions. Finally engagement may be thought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs.

biotech)score low whereas some service focused industries(retail. Satisfied. physical. Taking global figures into account. five distinct employee segments are identified-fully engaged. crash & burn and disengaged. honeymooners & hamsters. loyal and productive employee creates value. cognitive and emotional. E n g a g e m e n t b y g e n d e r t h e s u r v e y r e v e a l s a l a r g e r d i s p a r i t y b e t w e e n men and women.S t u d i e s s h o w t h a t p e o p l e h i g h e r u p i n t h e organization experience higher engagement. loyalty and productivity. BASIC ASPECTS OF EMPLOYEE ENGAGEMENT . Engagement by level. However there is a drop in engagement past the vice-president level.HR practioners believe that the engagement challenge has a lot to do with how employee feels about the work experience and how he/she is treated in the organization. it can be said that Indian workers are among the most focused and satisfied in the world. FOCUS ON EMPLOYEE ENGAGEMENT Engagement by industry -With the exception of g o v e r n m e n t s e c t o r which has relatively low engagement l e v e l s s o m e h i g h t e c h i n d u s t r i e s (pharma. customer loyalty and e m p l o y e e satisfaction. According to BW-HR global survey 34% of the employees in India are fully engaged and 13% disengaged. consumer products)score high.When Khan talked about employee engagement he gave importance to all three aspects. Loyalty is a direct result of customer’s satisfaction. the profit chain establishes relationship between profitability. Whereas in job satisfaction importance has been more given to cognitive side. Satisfaction is largely influenced by the services provided to customers. almost engaged. The links in the chain (which should be regarded as propositions) areas follows. Employee satisfaction in turn results primarily from high quality support services and policies t h a t e n a b l e employees to deliver results to customers. According to the study of Watson Wyatt. Men count 8%more fully engaged and 6%less disengaged than women. By plotting a given population against these two axes. Employee engagement represents an alignment of maximum j o b satisfaction with maximum job contribution. It has a lot to do with emotions w h i c h a r e fundamentally related to drive bottom line success in a company. As many as 29% are almost engaged. profit and growth are stimulated primarily by customer loyalty.

CATEGORIES OF EMPLOYEES There are Three Different types of employees. not engaged. They perform at consistently high levels. Interactions between employees at all levels. Thus employee engagement is a partnership between a company and its employee where everyone works together to achieve the b u s i n e s s objectives of the company and fulfil their personal aspirations. ACTIVELY DISENGAGED . T h e y o f t e n f e e l t h i s w a y b e c a u s e t h e y d o n ’ t h a v e productive relationships with their managers or with their coworkers. They want to use their talents and strengths at work every day. 2. 3. They want to be told what to do just so that they can do itand say they have finished. ENGAGED Engaged employees are builders. 1. Employees who are not engaged tend to feeltheir contributions are being overlooked and their potential is notb e i n g t a p p e d . It is therefore l a r g e l y t h e o r g a n i z a t i o n ’ s r e s p o n s i b i l i t y t o c r e a t e a n e n v i r o n m e n t a n d culture conducive to this partnership and a win-win equation. They focus on accomplishing tasks vsachieving an outcome. They want to know the desired expectations for their role so that they can meet and exceed them. They work with passion and they drive innovation and move their organization forward. NOT ENGAGED Not engaged employees tend to concentrate int a s k s r a t h e r t h a n t h e g o a l s a n d o u t c o m e s t h e y a r e e x p e c t e d t o accomplish.There are three basic aspects of employee engagement: T h e e m p l o y e e s a n d t h e i r o w n u n i q u e p s y c h o l o g i c a l m a k e u p a n d experience. They are naturally curious about their company and their place in it. The employers and their ability to create the conditions that promote employee engagement. They are engaged. actively disengaged.

and it explains reasons why people engage in certain roles and not in others. Organization member role Employees do things that promoteand help the company even if its not part of their jobs or their team’s dutiesIn general we find that most employees have a sense of fairness andeven if their employer treats them poorly most will show up to work and dothe job role. CareerroleEmployees do things to enhance their career inthe organization. then you are notbuilding organizational strength and long term competitiveness throughpeople because anyone can hire those same employees and duplicate whatyou are doing. The five work related roles that exist in any company are: JobholderroleEmployees come to work and do the job that islisted in their job description TeammemberroleE m p l o y e e s g o “ a b o v e a n d b e y o n d ” t o h e l p members of their team work towards common goals. THE ROLE THEORY Employee engagement can be defined in terms of what people do at work. they learn.The actively disengaged employees are the cave dwellers.If all your employees show up and only do their jobs. T h e y a r e n o t j u s t u n h a p p y a t w o r k t h e y a r e b u s y a c t i n g o u t t h e i r unhappiness. something called the role theory.. Everyday actively disengaged workers undermine what their engaged Co-workers accomplish. They are consistently against ‘virtually everything’. Role theory reviews different roles that people engage in at work. But having employee show up at work simply doing their jobsgets an employer nowhere in terms of long term competitiveness. Entrepreneur role E m p l o y e e s c o m e u p w i t h n e w i d e a s a n d processes and try to get those ideas implemented. they adapt new skills. The problems and tensions that are fosteredb y actively disengaged workers can cause great damage to a n organization’s functioning. It is the synergy that comes from people working t o g e t h e r a n d gathering creative ideas that leads to long term . and more. They sow seeds of negativity at every opportunity.

organizational wealth c r e a t i o n . to and by whom .this is the “launch” part of engagement programmes.generally thism e a n s t h a t t h e y must see tangible. E I N S T E I N ’ S T H E O R Y O N E M P L O Y E E ENGAGEMENT ENGAGEMENT= MEANINGFUL RELEVANT RECOGNITION Einstein’s theory was based on the formulae that is E=MR2 K-A-B MODEL According to K-A-B MODEL for the success of employee engagement.they need to form an attitude about what they know .Evidence of . thecompany must follow three steps i. and isalso where much of the effort is focused-often to the detriment of thesubsequent stages. T h a t s y n e r g y a n d a b o v e a n d b e y o n d b e h a v i o u r i s e v i d e n c e o f employee engagement.over what timeperiod . and what they will seehappening across the organization.KnowledgeAttitudeBehaviour KNOWLEDGE:Stakeholder must be aware of what is happening. ATTITUDE:Once the stakeholders have internalized the knowledge.e.what the change or engagement effort is. positive evidence that theorganization is s e r i o u s a b o u t a n d c o m m i t t e d t o t h e p r o g r a m m e .

THE TEN C’S OF EMPLOYEE ENGAGEMENT How can leaders engage employees’ heads. Career : Leaders should provide challenging and meaningful work withopportunities for career advancement. People want t o understand the vision that senior leadership has for the organization. if employees’ relationship with their managers is fractured. and h a n d s ? T h e literature offers several avenues for action. orteam.behaviour change emerges in key leaders. Connect : Leaders must show that they value employees.then no amount of perks will persuade employees to perform at top levels. For example. Convey : Leaders clarify their expectations about employees and providefeedback on their functioning in the organization. managersand employees as. hearts. 1.” 2. guidance and supportneeded to change their behaviours and must be visibly intolerant of behaviours that do not align with achieving the objectives behind theoverall engagement efforts. do organizations provide job rotation for their toptalent? Are people assigned stretch goals?Do leaders hold people accountable for progress? Are jobs enriched induties and responsibilities? Good leaders challenge employees. for example.it is essential that they are given the tools. we summarize these as the TenC’s of employee engagement. determined byhow clear individuals are about their goals and what they really want toachieve. 4. “Our employees areour most valuable asset.Once stakeholders have internalized the informationand formed an attitude about the change and what it means to them. Success in life and organizations is. andthe goals that leaders or departmental heads have for the division. process begin to evolve and changesare made. Most people want to do new things intheir job. to a great extent. Clarity : Leaders must communicate a clear vision. 3.However. Employee-focused initiatives such as profit sharing and implementing work–life balanceinitiatives are important. but at thesame time.Employee engagement is a direct reflection of how employees feel abouttheir relationship with the boss. Good leaders establish . unit. BEHAVIOUR :. they must instill the confidence that the challenges can be met. Employees look at whether organizationsand their leader walk the talk when they proclaim that.

when employees work in teams andhave the trust and cooperation of their team members. over and over. 7. int u r n . employees feel that theyreceive immediate feedback when their performance is p o o r . anemployee understands of the connection between her work – as operationalzed by specific job-relevant behaviors – and the strategic objectives of thecompany had a positive impact on job performance. These same employees also report that praise and recognitionfor strong performance is much less common. Third. or Organizationperforms at its best.5. increased customer satisfaction and an improvement in revenueg r o w t h . I n s u m . g o o d l e a d e r s h e l p p e o p l e s e e a n d f e e l h o w t h e y a r e contributing to the organization’s success and future. Surveys show that. o r b e l o w expectations. they outperform . Contribute : People want to know that their input matters and that theyare contributing to the organization’s success in a meaningful way. Collaborate : Studies show that. improvements inemployee attitude led to improvements in job-relevant behavior. an employee’sa t t i t u d e t o w a r d s t h e j o b a n d t h e c o m p a n y h a d t h e g r e a t e s t i m p a c t o n loyalty and customer service than all the other employee factors combined. they coach and convey. 6.” and of being given opportunities toparticipate in decision making often reduces stress. Exceptional leaders giverecognition. unit. Good leaders work daily to improve the skills of their people and create small wins that help the team. Congratulate: Business leaders can learn a great deal from Woo den’s a p p r o a c h . it also creates trust anda c u l t u r e w h e r e p e o p l e w a n t t o t a k e o w n e r s h i p o f p r o b l e m s a n d t h e i r Solutions. 8. First. this. and they do so a lot. Control : Employees value control over the flow and pace of their jobsand leaders can Create opportunities for employees to exercise this controlA feeling of “being in on things. Second.processes and procedures that help people master important tasks andfacilitate goal achievement.

We need to create enthusiasm for their roles. Engaged employees who are inspired and guidedby the leadership equipped with the right tools and managed by the rightsystems and process deliver superior performance.Surveys indicate that being cared about by colleagues is a strong predictorof employee engagement. a continuous challenge for leaders is to rallyindividuals to collaborate on organizational.Leaders should actively try to identify the level of engagement in theirorganization. strive toeliminate those reasons.Employee engagement relates to the employee’s commitment to theorganization’s success. It is not possible to retainprofessionals only by paying high salaries and offering attractive benefits. Thus. and implement behavioral strategies that willf a c i l i t a t e f u l l e n g a g e m e n t . E m p l o y e e Engagement is hard to achieve and if not sustained by leaders it can witherwith relative ease. their performance.individuals and teams which lack good relationships. People want to be proud of their jobs. their work and theorganization and ensure they are well integrated. Practitionersand academics have argued that Competitive advantage can be gained bycreating an engaged workforce. and group goals. Great leaders are teambuilders.while excluding individuals pursuing their self-interest. THE LOYALTY FACTOR The key to employee engagement is creating greater motivation fortheir work and commitment to their organization. Credibility : Leaders should strive to maintain a company’s reputationand demonstrate high ethical standards. they create an environment that fosters trust and collaboration. Confidence: Good leaders help create confidence in a company bybeing exemplars of high ethical and performance standards. and their 10. departmental. T h e s e e f f o r t s s h o u l d b e o n g o i n g . 9. Employee engagement . find the reasons behind the lack of full engagement.