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Employee engagement and organizational effectiveness: The role of organizational


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Employee Engagement and Organizational Effectiveness:
The Role of Organizational Citizenship Behavior
Aakanksha Kataria1 Pooja Garg2 Renu Rastogi3

ABSTRACT

In order to achieve and sustain organizational effectiveness, through employees’ increased contributions, organizations,
apart from task proficiency, becoming increasingly reliant on employees’ discretionary efforts at workplace. To take part
in their potent inclination, this paper intends to explore employee engagement and OCB literatures to investigate the
interrelationships between employee engagement, OCB, and organizational effectiveness. A retrospective analysis is
carried out of existing theoretical and empirical research studies to support the associative interrelationship between
employee engagement, OCB, and organizational effectiveness. This integrative review subsequently considers
two alternative models and propositions to establish causal relationships between employee engagement, OCB,
and organizational effectiveness. Findings indicate that employee engagement has potential to drive OCB. Engaged
employees also have the greatest potential to augment organizational effectiveness through their higher levels of OCB.
This study suggests that value-based organizations through their HR architecture should adopt high performance HR
practices to sustain high levels of employee engagement, since the psychological mechanism of engagement drives OCB
by which an organization achieves effectiveness. Furthermore, this study mainly focuses on employees as engaged in
their work roles, since these employees are highly capable of stimulating positive workplace behaviors and organizational
performance. The study contributes to employee engagement and organizational effectiveness literatures by adding the
notion of employee engagement as a significant antecedent of organizational effectiveness through OCB.

KEY WORDS: Employee Engagement, Organizational Effectiveness, Citizenship Behaviour.

JEL CLASSIFICATION: M24

1. INTRODUCTION work place (Schaufeli et al., 2002; Salanova & Schaufeli, 2008)
Achieving organizational effectiveness is the ultimate purpose including low absenteeism, helpful attitude towards co-workers
to be focused by any organization that takes enormous effort and adherence to company rules etc., more popularly known
to maximize employees’ task efficiency, commitment, and as organizational citizenship behavior (Organ, 1988). Engaged
sustain intrinsic motivation to perform well in difficult times. This employees bring enduring state of fulfilment at workplace while
is why recent efforts to improve organizational performance feeling intrinsically motivated to exhibit positive feelings such as
have begun to inculcate positive organizational concepts like sharing, assisting, cooperating, and supporting, and thus create
optimism, trust, and engagement (Koyuncu et. al., 2006). As a holistic framework of the positive psychological, social, and
a matter of fact, among optimism, trust, and engagement, organizational context of work. In this regard, research studies
leaders and managers across the globe recognize employee in organizational sciences have recently begun to report a
engagement as one of the most vital element that affects positive association between employee engagement and OCB
organizational effectiveness (Welch, 2011). (Bakker, Demerouti, & Verbeke, 2004; Christian et al., 2011;
Schaufeli, Taris, & Bakker, 2006; Shimazu & Schaufeli, 2009).
The continuance of employee engagement goes beyond
the traditional notions of job satisfaction, organizational Organizational citizenship behavior (OCB), a positive
commitment, job involvement etc. Engagement involves psychological approach of engaged employees towards work
the active use of emotional, cognitive, and behavioral and organization is concerned with those informal duties and
energies at workplace while working in coherence with the tasks that go beyond the set boundaries of one’s job (Organ,
organization’s objectives and strategies (Andrew & Sofian, 1988). The presence of OCB has been advocated for the
2011). Also, engaged employees being focused, energetic, increased organizational effectiveness (Katz & Kahn, 1966;
and fully engrossed in their jobs are highly motivated to direct Organ, 1988; Podsakoff & Mackenzie, 1997). OCB has been
their focused energy towards organizational goals (Macey observed to encompass those behaviors which lubricate the
& Schneider, 2008; Barbera, & Young, 2009). Certainly, social machinery and construct the psychological fabric of an
organizational performance and effectiveness is a function organization. Hence, OCB is widely considered both critical and
of the collaborative efforts of engaged employees (Bakker, beneficial to organizations (Wei et al., 2010). OCB literature
2011). Engaged employees experience greater attachment to has produced an impressive amount of substantive research
their work and organization (Organ, 1994; Schaufeli & Bakker. on antecedents of OCB (Organ & Ryan, 1995; Podsakoff et al.,
2004) and they are more likely to do things that augment 1996; Podsakoff et al., 2000). However, the constant evolution
organizational effectiveness (Saks, 2008). For instance, of the psychological process of employee engagement has
engaged employees are optimistic and spontaneous, they lately begun to emerge as yet another important pathway for
tend to exhibit positive attitudes and proactive behaviors at the evocation of OCB (Wei et al., 2010). This furthers the need

1
Aakanksha Kataria, Research Scholar, Department of Humanities & Social Sciences, Indian Institute of Technology, Roorkee (IITR) Roorkee, India.
2
Pooja Garg, Ph.D., Assistant Professor, Department of Humanities & Social Sciences, Indian Institute of Technology, Roorkee (IITR), Roorkee, India.
3
Renu Rastogi, Ph.D., Professor, Department of Humanities & Social Sciences, Indian Institute of Technology, Roorkee (IITR), Roorkee, India.

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Employee Engagement and Organizational Effectiveness: Aakanksha Kataria et al.
The Role of Organizational Citizenship Behavior

to improve our existing understanding of causal relationships energies (physical, cognitive, and emotional) into their work
among antecedents and consequences of OCB. In the current roles”. In this connection, psychological experiences were
study, we attempt to include ‘organizational effectiveness’ identified as significant and necessary for an employee to invest
variable that has received less attention in previous research his/her personal energies into their work role performance.
to throw light on the potential significance of employee Three psychological conditions were also articulated as a
engagement through OCB. We are affirmative that academic result of this notion a) meaningfulness (identification with one’s
efforts that explore how psychological mechanisms encourage work/creative and challenging work, autonomy etc.), b) safety
and motivate employees to more actively engage in OCB (elements of social systems), and c) availability (sense of
and their impact on organizational effectiveness would most having physical and psychological resources). In this context,
likely provide considerable implications for human resource engagement was presumed as having positive outcomes for
development scholars and professionals. both individual as well as organizations. The fulgent beginning
of engagement literature with the works of Kahn (1990) has
Furthermore, as aforementioned, employee engagement drifted considerable attention and inclination of researchers
encourages OCB (Bakker, Demerouti, & Verberke, (2004); in recent times. Hence, numerous definitions on engagement
Babcock-Roberson, & Strickland, 2010; Christian et. al., 2011), have been produced thereafter:
and OCB have been well documented in literature augmenting
the effectiveness of an organization (Walz & Niehoff, 2000). Harter et al., (2002) defined engagement as “the individual’s
Taking the same context ahead, it is proposed that employee involvement and satisfaction with as well as enthusiasm for
engagement is related to organizational effectiveness and OCB work”.
functions as a mediator in the relationship between employee
engagement and organizational effectiveness. The paper Schaufeli et al., (2002) defined engagement as “a positive
does not ostensibly replicate the previous acquisitions linking fulfilling, work related state of mind characterized by vigor,
employee engagement to OCB and OCB to organizational dedication, and absorption”.
effectiveness, but thoroughly envisages construction of a
comprehensive framework that organizes relevant literature Robinson et al., (2004) defined engagement as “a positive
to support the connections between employee engagement employee attitude towards the organization and its values,
and organizational effectiveness via OCB. In this direction, involving awareness of business context, and work to improve
the paper seeks to acknowledge this existing yet not explicitly job and organizational effectiveness”.
empirically examined link in the extant literature with regard
to employee engagement and organizational effectiveness, Saks, (2006) defined employee engagement as “a distinct and
and exploring organizational citizenship behavior (OCB) as unique construct that consists of cognitive, emotional, and
a significant mediator persuading the predicting variable to behavioral components that are associated with individual role
the criterion variable. No study, to the best of our knowledge performance” (p. 602).
has proposed this unique combination of variables and the
potential mediating mechanism of OCB between employee Shuck & Wollard, (2010) distinctly defined employee
engagement and the organizational effectiveness. Therefore, engagement as “an individual employee’s cognitive, emotional,
the paper sets forth a new area of potential interest for research and behavioral state directed toward desired organizational
and practice in organizational sciences that could be further outcomes”.
explored and build upon.
In sum, an emerging body of research is using a common
2. State of the art, theoretical framework, conceptualization of employee engagement connoting it as high
and conceptual model levels of personal investment in terms of physical, cognitive,
2.1 Employee engagement and emotional energies in the work tasks performed on a job
Considerable attention is given to the notion of employee (e.g. Kahn, 1990; Macey & Schneider, 2008; Mayet et al.,
engagement in contemporary organizations due to the recently 2004; Rich, et al., 2010; Schaufeli et al., 2002; Christian et al.,
reported positive relationship between engagement and direct 2011). Bakker & Schaufeli (2008) claimed that organizations
measures of organizational effectiveness as job performance, need more engaged employees who feel energetic, dedicated
output, quality, customer satisfaction, profits, and business and absorbed by their work. Schaufeli’s three-factor model
growth (Buckingham & Coffman, 1999; Coffman & Gonzalez- that captures engagement in terms of vigor, dedication, and
Molina, 2002; Buchanan, 2004; Gallup Organization, 2004; absorption components has been one of the most popular
Hewitt Associates LLC, 2005; Fleming and Asplund, 2007; measures (Wefald et al., 2011) due to its vast validity in majority
Lockwood, 2007; Sundaray, 2011). Therefore, engaged of countries across the world (Bakker et al., 2008).
employees nowadays is at the central focus of various
organizations. Vigor- vigor refers to the positive core affect in employees
that is characterized by the high levels of positive energy and
Though emergence and vast popularity of the concept has often mental resilience while working, and the willingness to invest
been attributed to practitioners’ community, yet a great deal of time and efforts in job tasks.
research from researchers and academicians establishing the
instrumentality of the concept, and identifying its differential Dedication- contains the emotional framework of engagement.
antecedents and consequences has been flourishing lately It is a state in which employees perceive their work as a
(Sonnetag, 2011; Rurkkhum & Bartlett, 2012). significant and meaningful pursuit.

Kahn (1990), in his first and foremost qualitative study on Absorption- refers to the cognitive aspect where employees
engagement states, “Engaged employees drive personal experience their work as engrossing and something on which

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Aakanksha Kataria et al. Employee Engagement and Organizational Effectiveness:
The Role of Organizational Citizenship Behavior

they are fully concentrated and one finds it difficult to detach & Brief, 1992), and as contextual performance (Motowidlo,
himself from work. 1997), but organizational citizenship behavior (OCB) is more
comprehensive and popular term that describes these wide
Engaged employees are happily involved and experience their range of cooperative behaviors that are positive, voluntary,
work as engrossing and something to which they can devote non obligatory, and goes beyond the set requirements of
their full concentration (Bakker et al., 2010, 2011). Hence, a job (Turnipseed & Wilson, 2009). More recently, while
engagement is inferred as a positive experience in itself which broadening the scope of the construct, Organ (1997) reshaped
has positive consequences for the organizations (Bhatnagar, the definition of OCB’s as behaviors that facilitate “the
2012) in terms of high commitment, task proficiency, less maintenance and enhancement of social and psychological
employee turnover, less absenteeism, higher productivity, context that supports task performance”, explicating similarity
and consequently, increased performance of the organization. to the conceptualization of contextual performance by Borman
Employee involvement, commitment, and performance are & Motowildo (1993).
directly connected to the goals of an organization (Denison et
al., 2004). Engaged employees would make a big difference Further, although there exists a lack of consensus on the
if organizations provide positive psychological climate, dimensionality of OCB among researchers as almost 30
good working conditions, job resources, and organizational overlapping or somewhat different forms of OCB’s have been
support to inspire them to give their best and go extra-mile identified (Podsacoff et al., 2000), but Organ’s (1988) taxonomy
to enhance the effective functioning of the organization. In delineating citizenship behaviors in terms of altruism, courtesy,
addition, employees perform better when they experience civic virtue, conscientiousness, and sportsmanship has been
positive practices at work place for instance, being treated with widely accepted, popular and much studied in literature
respect, provided with opportunities to develop their career, reporting the greatest amount of empirical research (LePine
adequate reward and recognition for high performance etc. et al., 2002).
In fact, employees desire positive feelings about their work
experiences that go beyond global attitudes of job satisfaction a. Altruism refers to the helping approach of an employee
or commitment (Buckingham & Coffman, 1999; Harter, towards fellow employees.
Schmidt, & Hayes, 2002; Harter, Schmidt, & Keyes, 2003; b. Conscientiousness denotes impersonal behaviours for
Wagner & Harter, 2006). Therefore, it is a two way process and instance, obeying rules.
much effort is needed on the part of organizations to nurture c. Sportsmanship invoke behaviors that includes not
and leverage engagement. Providing employees a positive complaining on fiddling issues and willingness to tolerate
work environment is of ominous significance where employees less than ideal circumstances
can improvise and consequently help their organization to d. Civic Virtue behaviors that indicate employees’
flourish in the present scenario. participation and concern about the life of organization
such as participating in meetings, and
2.2 Organizational Citizenship behavior (OCB) e. Courtesy reflects in discretionary behavior such as positive
Barnard’s (1938) impression of the “willingness to cooperate” gestures of consulting and passing along the information,
has directed considerable interest from industry and aimed at preventing work related problem with others
management towards that constituent of job performance (Organ, 1988).
other than formal role requirement or task performance which
has substantial impact on the capability of an organization to Given the rationality for a significant association between
achieve its long term goals. In addition, his concern for the OCB and organizational effectiveness (Bateman & Organ,
cooperative efforts on part of employees in terms of sharing 1983; Organ, 1988; Podsakoff & Mackenzie, 1994; Smith,
information among organization members to make the Organ, & Near, 1983; Williams & Anderson, 1991), it has
organization function smoothly prefigures that willingness of been observed that employee’s extra efforts in form of
individuals to engage in spontaneous and cooperative gestures citizenship behavior enable supervisors to devote more time in
are instrumental for the vitality of organizations (Walz & Niehoff, planning organizational activities, promote optimum utilization
2000). While expanding and refining his idea, several authors of organizational resources, enhances co-workers’ and
have made significant contributions thereafter to describe managerial productivity, make organization a better place to
employees’ positive and cooperative gestures as those extra work and thereby resulting into better functioning and smooth
role behaviors that are instrumental to the organizational running of the organization. In fact, reduced absenteeism,
effectiveness (Katz & Kahn, 1966, 1978). Organ, (1988) increased employee satisfaction and employee retention,
subsequently conceptualized these efforts as organizational are some other contributions of OCB towards increased
citizenship behaviors that are discretionary, not directly and organizational performance and effectiveness (Chahal &
explicitly recognized by the organizational reward system, Mehta, 2010; Chughtai & Zafar, 2006; Khalid & Ali, 2005;
and that in aggregate, promote the effective functioning of the Podaskoff & Mackenzie, 1997).
organization. Borman & Motowidlo, (1993) conceived the idea
as contextual or citizenship performance and defined this type Although there is a considerable agreement about the
of performance as behaviors that are not directly related to the salience of OCB in extant literature, yet there is no consensus
main task activities but are significant because they support on the understanding of sources of OCB. OCB are largely
the organizational, social, and psychological context that considered as a matter of personal choice based on three
serves as the critical catalyst for tasks to be accomplished. underlying motives (motivational factors): a) prosocial values
Further, while sharing a common belief, these behaviors have b) organizational-concern c) self-concern (Thayer, 2008). OCB
been defined and termed differently in literature in terms of are conceived as predominantly goal-directed behavior that
extra-role behaviors (Dyne et al., 1995), prosocial behaviors is initiated by internal goals set by an individual. In addition,
(Brief & Motowidlo, 1986), organizational spontaneity (George researchers have emphasized the attitudinal and dispositional

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Employee Engagement and Organizational Effectiveness: Aakanksha Kataria et al.
The Role of Organizational Citizenship Behavior

factors which determine the extent to which one exhibit OCB Organizational effectiveness is defined in terms of the extent to
(LePine et al., 2002; Organ & Ryan, 1995; Podsakoff et al., which an organization achieves its goals (Steers, 1977).
2000) whereas others focused on its contextual factors
articulating OCB as an outcome of situational cues that define Hannan & Freeman (1977), defined organizational effectiveness
role- requirements and responsibilities to employees, motivate as “the degree of congruence between organizational goals
and provide opportunities or constrains the display of OCB and observable outcomes”.
(Farh et al., 2004). Figure_I highlights the possible direct or
indirect antecedents and consequences based on a collective Mott (1972), defined organizational effectiveness as “the
review of 37 international research studies conducted with an ability of an organization to mobilize it centres of power, for
aim to recognize substantive antecedents and consequences action, production and adaptation”. Effective organizations
of OCB. Although, the studies undertaken for review are having are those that tend to produce more and adapt more easily
different locations, samples, times etc., but the theoretical to environmental and internal problems than do other similar
underpinning and the findings are more or less similar in organizations.
terms of its antecedents and outcomes. It can be clearly seen
in Figure_I that OCB is influenced by so many factors and Organizational effectiveness is “a company’s long term ability
also that it leads to plethora of individual and organizational to achieve consistently its strategic and operational goals”
outcomes. (Fallon & Brinkerhoff, 1996).

2.3 Organizational Effectiveness In sum, organizational effectiveness is a broad construct


Deeply embedded in the organizational literature is the encompassing a wide variety of competing perspectives. In
construct of effectiveness (Quinn & Rohrbaugh, 1983). It is one addition, varied viewpoints on the conceptualization of the
of the most sought after dependent variable and worthy subject construct predominantly specify its multidimensional character
in organizational sciences, and as well as the ultimate focus to ponder upon and the complexity of its vast scope have made
of every managerial effort. Organizational effectiveness has it difficult to gain consensus over its precise measurement.
been widely accepted as “the degree to which an organization
realizes its goals” (Daft, 1995). The term effectiveness is 2.4 Evaluating organizational effectiveness
well- rounded to encompass several aspects of efficiency and Creating and designing effective organizations is important (Hitt,
adaptability (Cetin & Cerit, 2010). An effective organization is 1988; Handa & Adas, 1995).Though, the complexity inherited
both efficient in economic and technical aspects, and able to in the nature of the most critical determinant of organizational
adapt itself to the external changes as well (Carnall, 2003). success, yet a variety of approaches and frameworks have
Mott (1978) has observed three aspects of organizational been developed in literature to understand the composite
effectiveness a) productivity b) adaptability c) flexibility. domain of organizational effectiveness. Table I. presents the
most popular approaches to organizational effectiveness.
i. Productivity deals with the quantity and quality of the
product or service, and the efficiency with which it is In essence, the term organizational effectiveness is envisaged
delivered. as a blend of multiple constituents placing a challenge for
i. Adaptability has two constituents: symbolic adaptability its precise and consensual measurement (Cameron, 1986;
and behavioral adaptability. Symbolic adaptability refers Green & Griesingev, 1996). Mott’s (1972) measurement of
to both anticipating problems in advance and developing perceived organizational effectiveness has been found to be
satisfactory and timely solutions to them in addition the most frequently used criteria in various models pertaining
to staying abreast of new technologies and methods to effectiveness (Steers, 1975; Sharma & Samantara, 1995;
applicable to the activities of the organization. Behavioral Luthans et al., 1988).
adaptability explicates prompt and prevalent acceptance
of solutions (Mott, 1972; Luthans et al., 1988).
i. Flexibility has been considered as a separate and 2.5 Employee engagement and organizational
independent index of organizational effectiveness. It is effectiveness
conceptually different from adaptability as organizational Employees’ contribution in terms of task proficiency, proactivity,
changes that result from meeting emergencies are mental resilience, and commitment is of utmost significance
usually temporary, usually the organization returns to and acts as the building block for the sustenance and growth of
its pre-emergency structure, whereas adaptive changes any firm. Noted in this direction, employees’ active commitment
are more likely to be permanent (Mott, 1972; Samantara, and involvement is of greater substance when it comes to
2004). innovation, organizational performance, and competitive
advantage (Bakker & Schaufeli, 2008). There are two reasons
In sum, organizational effectiveness must address the need that enable the study in linking employee engagement to
to maintain internal efficiency while optimizing the use of organizational effectiveness. First, employee engagement has
organizational resources, increase adaptability and ability to emerged as a critical element for business success (Slatten &
sustain through the external inconsistencies, and achieve its Mehmetoglu, 2011). Engagement is a pleasurable experience
objectives and goals as well. However, there have been many for employees (Sonnentag et al., 2012), which drives proactivity,
foci on defining organizational effectiveness (Mzozoyana, innovation at workplace, and increases employees’ ability to
2002). adapt to workplace changes in emergencies. Even more, they
tend to be resilient in the face of difficulties and consequently
Katz & Kahn (1966), defined organizational effectiveness as drive organizational flexibility.
“the maximization of return to the organization by all means”.
Second, when employees are engaged they are more likely

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Attitudinal factors
Individual Consequences
-Job satisfaction
-Organizational -High performance ratings by supervisors
commitment -Favourable Self-evaluations
-Justice & fairness -Self-esteem, personal control, self-
perceptions efficacy, confidence
-Personal Development
-Physical and Mental Health
Dispositional factors -Individual well-being
-Personality Higher positive affect, social rewards,
Agreeableness, Conscientiousness intrinsic rewards
-Traits -Life satisfaction
Empathy, Helpfulness
-Positive affect

Motivational Factors Organizational Consequences

Expressive functional motives Unit performance


-Role identity Organizational
-Ego protection -Enhanced coordination
Citizenship -Reduced need for maintenance
-Self-enhancement
Instrumental functional motives Behavior (OCB) -Operating efficiency
-Economic & Cost-benefit considerations -Customer service quality
-Performance quality and quantity
Citizenship Motivation Scale -Unit sales
-Prosocial values
-organizational concern Organizational Effectiveness
-Impression management
-Organizational productivity
-Organizational flexibility
Contextual Factors -Organizational adaptability
Social Relationships -Organizational efficiency
Task characteristics
-Relationship with supervisors -Employee retention
-Task demands Transformational leadership, -Talent acquisition
-Job autonomy LMX -Team effectiveness
-Intrinsically -Relationship with Co-workers -Managerial effectiveness
satisfying tasks Interpersonal relationship -Optimization of scarce resources
-Task-interdependence quality, intensity of friendship, -Stable organizational performance
TMX, group cohesiveness, -Environmental performance
cooperative group norms

Figure I. Direct or Indirect Sources and Consequences of OCB.

to do things that substantiate organizational effectiveness they will act in a way that furthers their organization’s interests
(Saks, 2008). Engaged employees tend to work harder and (Kennedy & Daim, 2010). Towers Perrin, (2003) have
go beyond the call of the duty (Lockwood, 2007; Chalofsky & reported that engaged employees bring discretionary efforts
Krishna, 2009). In addition, engaged employees experience to work, in the form of extra time, brain power and energy.
great passion for their work, produce better quality goods, and In addition, engaged employees are emotionally attached to
feel that their contribution helps in moving the company forward their organization and highly involved in their job with a great
(Kennedy & Daim, 2010). Following the above arguments enthusiasm for the success of their employer while going extra
on the influence of employee engagement on organizational mile beyond the formal job requirements (Markos & Sridevi,
effectiveness, we propose that, 2010). Engaged and attached employees put more efforts
in their jobs, and are likely to perceive higher obligations of
P1. Employees’ level of engagement will significantly predict their employers (Bal, Cooman, & Mol, 2011). This states the
organizational effectiveness. willingness of engaged employees to exhibit behaviours that
go beyond the set boundaries of their jobs. Several studies in
2.6 Employee engagement, OCB, and organizational this direction have established that engaged employees being
effectiveness proactive, vigorous and consecrated are more consistent
2.6.1 Employee engagement and OCB to invest their personal resources and act more freely to
Employee engagement, an active psychological state of display extra-role behaviour than others. In other words,
employees’ (Parker & Griffin, 2011), is often associated and they are more likely to be better in contextual performance
described in congruence with OCB. Organ (1988) defined in addition to the task performance (Bakker, 2011; Christian
OCB as “individual behavior that is discretionary, not directly et. al., 2011). Furthermore, engaged employees’ relatively
or explicitly recognized by formal reward system, and that enduring state of being active reflect interpersonal facilitation
in aggregate promotes the effective functioning of the and their constant willingness to find meaning in work keeps
organization”. them emotionally engaged (i.e. job dedication). Both of them
(interpersonal facilitation and job dedication) have long been
When employees are engaged in their work, they increase recognized as inherent concepts of OCB (Van Scotter &
the occurrence of OCB’s, i.e., when employees have choices, Motowidlo, 1996).

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Table 1. Various Approaches to Organizational Effectiveness.

Approach Perspective on Perspective on organization Main focus Criticism/ Support


effectiveness

Goal-attainment “as the degree to is on identification of A partial measure of


(Price, 1968) which an organization Organizations are deliberate, organizational goals organizational effectiveness,
Most widely discussed and achieves its goals” rational, goal seeking and operating objectives an organization may have
used (Molnar & Rogers, entities that are created like profits, productivity, conflicting goals and further,
1976; Weese, 1996). to achieve predetermined quality etc. to measure goals may shift over time
Most logical approach and specified goals (Price, performance and due to internal and external
(Chelladurai &Haggerty, 1968; Perrow, 1970; Love & inconsistencies (Weese, 1997;
1991) Skitmore, 1996) Pratt & Eitzen, 1989; Hossein et
al., 2011)

System resource (Yuchtman “as the ability of an -Views organization as an is on inputs, attracting Single set of evaluative criteria
& Seashore, 1967) organization, in either open system of various necessary resources and (Connoly, 1980). Failure to
absolute or relative interrelated subsystems. on the transformation consider the political nature of
terms, to exploit processes. organization.
its environment in - Organization is able to It is concerned with the Measurement of all systems
the acquisition of attract resources to ensure extent to which resources needs are difficult to develop
scarce and valued viability (Hossein et al., acquired from the (Cunningham, 1977; Cetin &
resources to sustain its 2011). environment are officially Cerit, 2010)
functioning” used to produce goods or
services (Schermerhorn et
al., 2004).

Internal process (Steers, Organizations that can There is a clear linkage is on the internal logic and Views only one sided view of
1977) offer a harmonious between the internal consistency among the effectiveness lacks identification
and efficient internal processes of an organization throughput processes of of valued internal processes
environment are and its desired outputs. the organization as they and methods to assess them
viewed as effective. convert an organization’s (Hossein et al., 2011).
For instance, inputs into desired outputs Failure to consider the political
trust, integrated (Pfeffer, 1977; Steers, nature of organizations
systems, and smooth 1977; Hossein et al., where different stakeholders
functioning. 2011). work together to meet their
expectations.

Strategic constituency Strategic constituent The organization has a is on the human Internal and external constituent
(Connolly et al., 1980) groups determine the number of constituencies, resources. Specifically, groups would have different
way organizations are with different degrees of this approach focuses its perspectives while evaluating
functioning and what power, and each trying attention on the minimal the effectiveness of the
is to be perceived as to satisfy its demands. satisfaction of all the organization.
effective or ineffective Individuals, groups, and strategic constituencies
other stakeholders having of the organization for
common interests in instance, consumers of
organizational activities exert the products, supporters,
influence on the decisions of facilitators, dependents
organizations. and the resource
providers (Cameron,
1981; Ashraf & Kadir,
2012).

Competing values This approach Organizations can be is on maintaining balance A tool for improved
(Quinn & Rohrbaugh, combines four evaluated in varied ways or capacity among the understanding of organizational
1981;1983) basic models of assuming there is “no focus of the organization effectiveness.
Most rigorous and influential organizational best” criteria that is valued (people vs. organization),
multidimensional approach. effectiveness, each and used in assessing the organizational
Particularly designed to focuses on a different organizational effectiveness. structure (flexibility
measure effectiveness in criterion. vs. control) and the
profit organizations (Balduck -Rational goal model processes and outcomes
& Buelens, 2008; Hossein et - Open systems model (means vs. ends).
al., 2011). -Internal process model
-Human relation model

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employees’ behaviors for recycling, saving energy, voluntary


Thus, OCB indicates the employee’s responses to their active engagement in organizations’ environmental initiative,
employment relationship and it is profoundly associated with and helping colleagues to take environmental concerns into
employee engagement. It has been recently observed that, account may all seem trivial but the cumulative effect of all these
engaged employees consistently demonstrate three general eco-initiatives ultimately contribute to improved organizational
behaviours which improve organizational effectiveness: a) performance.
Say- the engaged employee proponents for the organization’s
reputation to its customers, co-workers and potential Thus, on the basis of findings, assumptions, and axioms in
employees b) Stay- the engaged employee stays with the extant literature delineating the relationship between employee
organization despite of the opportunities available outside c) engagement, OCB, and organizational effectiveness, it is
Strive- the engaged employee invest extra time, efforts and inferred that employee engagement is positively associated
take initiatives to see that the employer succeeds (Baumruk with organizational effectiveness and OCB can be seen as a
and Gorman, 2006; Markos & Sridevi, 2010). significant intervening variable between employee engagement
and organizational effectiveness.
Although employee engagement is most commonly outlined
in terms of extra- role performance or discretionary efforts P2. Engaged employees exhibit OCB’s through which they
(Macey & Schneider, 2008, Fine et al., 2010), yet it has not augment organizational effectiveness.
been suggested to delimit the state of engaged employees in
terms of going extra mile (Schaufeli &Bakker). In fact, engaged The discussion above leads to a distinct view of recognizing
employees are enthusiastic about their work and dedicated OCB as mediating the relationship between employee
completely to find meaning in their work, and profoundly engagement and organizational effectiveness. Figure I
engrossed to put forth their efforts towards the attainment of shows an OCB oriented view of employee engagement that
organizational goals. They are more likely to exert extra efforts drifts organizational effectiveness. The model suggests that
like helping co-workers, compliance to rules etc. which have the concept of employee engagement and organizational
been considered as instrumental for the effective functioning effectiveness can be viewed from OCB perspective and
and smooth running of organizations (Organ, 1988). provides a platform for further research.

2.6.2 OCB and organizational effectiveness However, in spite of the widespread belief that OCB enhances
OCB derives its widespread interest and pragmatic significance organizational performance, causality of this relationship has
primarily from the premise that these behaviors enhance been marked as under examined in previous literature. It has
organizational effectiveness (Podsakoff & MacKenzie, 2009). not yet been crystal clear that OCB causes organizational
OCB presents contributions that are altruistic in nature and performance or organizational performance causes OCB.
when aggregated over time and persons, may enhance It might also possible that effective units have more time,
the performance by lubricating the social machinery and are under less pressure, and/or have satisfied members
constructing the psychological fabric of the organization, significantly affecting the extent to which employees are
reducing friction, and /or increasing efficiency (Borman & engaged in OCB (Podsakoff & MacKenzie, 2009). This
Motowidlo, 1993; Organ, 1988; Podsakoff & MacKenzie, 2009; literature finding places a distinct possibility of treating OCB
Smith et al., 1983). Employees’ increased tendency to exhibit as an outcome of effectiveness i.e. units which have engaged
helping behavior at work help new co-workers in becoming employees are more effective which in its turn encourages
productive faster and assisting co-workers with heavy workloads employees to exhibit OCB.
spread positive gain spiral of positive emotions at workplace
which in turn increase team effectiveness. There are several P3. Engaged employees enhance organizational effectiveness
other paths for the enhanced organizational efficiency through which encourages OCB.
OCB. For instance, as discussed earlier, OCB increases Altruism Courtesy Civic-Virtue Conscientious Sportsmanship

managers’ self efficacy by reducing their time to be spend on ness

Vigor (affective
work related matters instead employees positive workplace engagement)
Productivity

behaviors free up resources for more productive purposes Dedication


Employee
Engagement +
Organizational
Citizenship +
Organizational
Effectiveness Adaptability
(emotional
while allowing managers to devote more time in improvement engagement)
Behavior (OCB)
Flexibility

and developmental activities (Borman & Motowidlo, 1993; Absorption


(cognitive
+

MacKenzie et al., 1991, 1993; Organ, 1988; Podsakoff et al., engagement)

1993; Podsakoff & MacKenzie, 2009). Podsakoff & Mackenzie Figure 2. Proposed conceptual model colligating between
(2009) empirically examined the theoretical underpinnings of the latent constructs of organizational effectiveness.
the relationship between OCB and organizational effectiveness
and observed that OCB accounted for a significant amount
of variance in performance quality, quality of performance,
financial efficiency etc. In addition, altruistic behavior was Productivity Adaptability Flexibility

observed as having most significant effects on performance. Vigor (affective


engagement)
Altruism

Furthermore, recently OCB has been explored in relation to Employee Organizational Organizational
Courtesy

+ +
the organizations’ environmental management activities while Dedication
(emotional
engagement)
Engagement Effectiveness Citizenship
Behavior (OCB)
Civic-Virtue

putting it into the category of green behavior (Ramus, 2001; Conscientious


ness
Absorption +
Ramus & Killmer, 2007; Boiral, 2005). It has been recognized (cognitive
engagement)
Sportsmanship

as one of the main success factors in terms of employee-


driven pro-environmental initiatives and suggestions in Figure 3. Proposed conceptual model colligating between
corporate greening (Boiral & Paille´, 2012). For instance, the latent constructs of organizational citizenship
behavior (OCB).

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Employee Engagement and Organizational Effectiveness: Aakanksha Kataria et al.
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2. Discussion “organizational effectiveness”.


Organizations immensely concentrate on attracting and
retaining extraordinary employees who are not only capable Although literature has examined the relationships between
and willing to perform job tasks efficiently but also are keen employee engagement and the bottom line organizational
to voluntarily invest extra efforts in their jobs through which outcomes such as profitability, business growth, customer
achieving and sustaining organizational effectiveness is viable. satisfaction, and less absenteeism (Sundaray, 2011),
Effective functioning of an organization depends on employees’ these focused entirely on engaged employees’ capability
efforts extending beyond the formal job requirements (Barnard, and willingness to perform job tasks, and their greater
1938; Katz & Kahn, 1978; Organ, 1988; Yen & Niehoff, 2004). involvement and commitment towards workplace duties than
Therefore, an ideal employee do not only demonstrates the increased probability of engaged employees to extend
high levels of task performance but also exhibit high levels their efforts beyond the prescribed role requirements which
of OCB’s (Vigoda-Gadot, 2006; Somech & Drach-Zahavy, construct the psychological fabric of organizations and their
2012). contribution towards organizational effectiveness. However,
emphasizing the significance of employee engagement on
Given the relevance of OCB’s with regard to achieving achieving organizational effectiveness, current literature
organizational effectiveness, contemporary organizations has already focused on engaged employees’ agility, zest,
take much effort in finding possible ways to increase the and positive attitudinal and behavioral energies. Therefore,
contribution of employees. For instance, inculcating positive greater importance shall be given to reinforce organizational
workplace practices in order to provide an effective HRD citizenship behaviors through supporting the development
climate and highly engage their employees. In this study, a of high engagement level in employees. In this direction,
systematic literature review was conducted to explore the organizations should provide a supportive human resource
mediating mechanism of OCB in the relationship between development climate to help employees thrive at workplace.
employee engagement and organizational effectiveness. For instance, fulfilment of psychological contract, workplace
Specifically, engaged employees’ active state of emotional spirituality, performance management, managerial support,
attachment to their work and organization increases the justice, trust, transparency, integrity, career development
occurrence of behaviors which promote efficient and effective opportunities, effective leadership are the dynamic constituents
functioning of the organization (Organ, 1988; Roberson, & of the holistic perspective on favourable psychological climate,
Strickland, 2011). It is reckoned that engaged employees are which in turn, create conditions for employees to flourish at
more credible to behaviours like altruism, conscientiousness workplace. These positive workplace practices would enforce
and sportsmanship. In other words, fully absorbed and deep psychological connections with organization and engaged
dedicated employees behave in ways that are more virtuous employees will be more likely to exhibit profound interest in the
and courteous and disengaged employees tend to exhibit life of their organization.
less organizational citizenship behaviors (Bakker et al.,
2004). In this connection, one of the possible reasons could In the literature, the relations between employee engagement
be engaged employees’ increased likelihood of experiencing and OCB have been recently examined (Bakker, Demerouti, &
positive emotions and that they are more vigorous to achieve Verbeke, 2004; Christian et al., 2011; Schaufeli, Taris, & Bakker,
their goals. “Vigor” refers to the high levels of positive affect 2006; Shimazu & Schaufeli, 2009). Most of the research
and spontaneous attitude of engaged employees towards studies examined this relationship ended up with observing
task associated with their jobs. Various researches (Spector a positive association. This paper furthers the existing body
& Fox, 2002; Bennett & Stamper 2001) have signified “positive of literature by linking employee engagement and OCB with
affectivity”, as an antecedent or proximal cause of OCB. organizational effectiveness. Furthermore, a distinct possibility
Engaged employees by their consistent willingness and ability of treating OCB as an outcome of employee engagement
to invest extra efforts elevate the effectiveness of organization. and organizational effectiveness has also been presented
Also, engaged employees, being task proficient are able with a view to provide an alternative solution to the observed
efficiently manage resources such as time, efforts, and energy relationships between elite study variables. Therefore, testing
to benefit co-workers and organization. Furthermore, being the above stated models empirically would help to formulate
completely dedicated and responsible of their own personal appropriate structure of the model and the strength of the
development, they consider all aspects of their work to be part of proposed arguments. In this direction, construct developed by
their domain and step outside of their set boundaries or formal Schaufeli et al., (2002) could be used to measure engagement.
job requirements (Christian et. al., 2011). Therefore, OCB can For OCB, Podsakoff and MacKenzie (1989) have developed
be described as a performance related outcome variable of suitable measures. Further, organizational effectiveness
employee engagement (Shuck, Reio, & Rocco, 2011). This construct could be chosen from the studies of Mott (1972),
process has greater impact on organizational effectiveness added with the objective data on profitability and output of the
since it effects employees’ contribution in terms of increased organizations chosen for the study.
productivity, adaptability, and flexibility, and positive social and
psychological makeup of an organization which consequently The present paper analyzes organizational effectiveness
leads to the smooth running of an organization. Thus, on the only through the impact of employee engagement and OCB.
basis of preliminary and conceptual evidences and support In future, this study could also be extended to examine the
from previous studies, the proposed consequential model mediation role of turnover intensions, job performance, and
preconceives organizational effectiveness as organizational managerial effectiveness. Empirically examining the extent
level outcome of employee engagement and illustrates the of impact of these engagement outcomes would support and
possible treatment of OCB as mediating variable through motivate organizations to find the best ways to highly engage
which the focal independent variable “employee engagement” their employees for enhanced organizational success and
is able to influence the dependent variable of interest i.e. performance.

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Aakanksha Kataria et al. Employee Engagement and Organizational Effectiveness:
The Role of Organizational Citizenship Behavior

3. Conclusion Vol. 43, pp. 83-104.


The current study represents a unique and humble attempt 8. Bal, P.M., Cooman, R. and Mol, S.T. (2011), Dynamics
to explore the functional relationship between employee of psychological contracts with work engagement and
engagement, OCB, and organizational effectiveness. We turnover intentions: The influence of organizational
applied a theoretical perspective to integrate previous tenure, European Journal of Work and Organizational
research on employee engagement, OCB, and organizational Psychology, Vol. 1, No. 30.
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between employee engagement and organizational organizational effectiveness, Working Papers of Faculty
effectiveness. Thus, individuals with higher levels of of Economics and Business Administration, Ghent
engagement are more likely to exhibit OCB - in ways that University, Belgium.
would be expected to achieve and sustain organizational 10. Barnard, C.I. (1938), The functions of the executive.
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to bring into light much-needed models for the organizational 11. Bateman, T.S. and Organ, D.W. (1983), Job satisfaction
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Acknowledgments: companies, Business Strategy and the Environment, Vol.
The funding agency for this study was the University Grant Commission which 14, No. 6, pp. 339–360.
provided a grant in the form of Junior Research Fellowship to pursue a full-time
Ph.D. from Indian Institute of Technology Roorkee. However, the implications,
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