Factor affecting employee engagement in Local

private pharmaceutical company in Egypt

By
Ahmed Gomaa Mohamed Abd El-Ghany

Supervised By
Dr. Abdelmoneim El-said

This paper was submitted in partial fulfillment of the requirements for the degree
of MASTER OF BUSINESS ADMINISTRATION (MBA)
Global Management

At
ESLSCA Business School

October 2022

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Table of Contents
Abstract ......................................................................................................................................................... 3
Introduction .................................................................................................................................................. 3
Literature Review .......................................................................................................................................... 5
Discussion.................................................................................................................................................... 10
Importance of Engagement ................................................................................................................ 12
Models for engagement...................................................................................................................... 12
Measurement of Employee Engagement ........................................................................................... 13
Impact of employee engagement on job performance and business performance .......................... 15
Employee engagement in SME’s ......................................................................................................... 15
Total reward system ................................................................................................................................... 16
Relationship between total reward system and employee engagement ........................................... 18
Leadership ............................................................................................................................................... 18
History of leadership ........................................................................................................................... 19
Leadership level .................................................................................................................................. 20
Organization context........................................................................................................................... 20
Leadership theory and philosophy...................................................................................................... 20
Transformational and transactional theory ........................................................................................ 21
Relationship between engagement and leadership (transformational style) .................................... 22
Conclusion ................................................................................................................................................... 22
Recommendation........................................................................................................................................ 23
Bibliography ................................................................................................................................................ 23

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Abstract
One of productivity, customer satisfaction, sales, growth and profitability driver
of any company is employee engagement; so many researchers usually find out
which tools, techniques and or initiative which make the employee more
engageable and how they can measure it?
90% of Egyptian market companies are SME’s which have limited resource, so
disengagement equal money. Engaged employee can perform 20% more than
relatives, organization that have engaged employee earn 19 % in their operating
income and 28% earnings per share year- to-year (Markwick, 2009), so
Employee engagement is the important key of any organisation and secure
success driver.
Employee engagement is multidimensional concept and has not common
definition or perspective (psychological and behavioral perspectives) , and there
are no common model of engagement deriver .Engagement deriver depend on
Varity of factors generation, sex, industry and so on. I assume in this paper that
the total reward system (compensation, benefits, personal and professional
development and recognition) and transformation leadership style have a
significant positive effect on employee’s engagement in Local private
pharmaceutical company in Egypt and business performance as result.

Keywords: engagement, turn-over, total rewords system, recognition, leadership style,

pharmaceutical company, Egypt, SME’s

Introduction
Today, engagement is a hot topic in popular HR or management articles and reports and it’s too
difficult to find an article or report without some mention of employee engagement and how to
build it. Talented engaged employee is the most valuable asset of any organization they can act
as competitive advantage to achieve sustainability and long term success. The outcome of
employee engagement make HR practitioner’s and managers invest in this topic and initiatives
that aimed to engaged people ,operationally employees whose engaged are committed , dedicated
and act as Attorney and support his organization to obtain ultimate goal and execute its strategy
by using his or her talent to the fullest. Usually their performance are 20% exceed their relatives
because they not only doing their role but they fully invest themselves in the business as a whole.
Also they felling better and their self-confidence increase and health as well as wellbeing has
positive impact (Markwick, 2009)
On the other hand ,the turn-over cost in USA economy is about $254 billion to $363 billion
annually due to disengagement (Branham, 2005) .According to book Keeping the People Who
Keep You in Business by Leigh Branham (Dias, 2011 ) the cost of losing an employee can
range from 25 % to 200 % of that employee’s salary ,this cost include direct cost as recruitment
cost , on boarding cost, training cost and indirect cost as loss of production and reduced
performance in spite of turn-over is only just one side effect of disengagement . So engagement
is very important topic specially to small private companies that haven’t extra money or time in
market competition, so there is increasing in business awareness toward employee engagement

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and consider it one of pivotal to successful commercial business over all. Disengagement
increase turn-over rates, absence and affect the attitude, performance and productivity of
employee and business performance by default .Researcher find out that the highest
organization in engaged employee earn 19 % in their operating income and 28% earnings per
share year- to-year (Markwick, 2009).
Engagement different from generation to anther- generation Y easily engageable, but can
quickly become disengaged - also personality characteristics affect levels of engagement,
biographical and sonority, social environment, occupation and background -but not by sector- are
factors must considered in study ,satisfaction rate, absence and turnover rate is consider is a
weaker predictor of business outcomes than engagement.
Egypt is the MENA region’s largest producer and second largest consumer of pharmaceuticals,
+40 bn 2021 and sales are expected to hit EGP 85.5bn by 2027 , and the 4th most attractive
pharmaceutical market in Africa .Egyptian market have more than 120 pharmaceutical
companies local and multinational firms (N GAGE consulting, 2017).My research focus on
engagement in Local pharmaceutical company that –usually small or medium size - , 35% of
Egyptian pharmaceutical companies is local companies and 12% of this firms is private (N
GAGE consulting, 2017) so disengagement equal money and turn-over cost (direct or indirect
cost) .
Engagement define by Robinson, Perryman, and Hayday (Markwick, 2009, p. 14) as “a positive
attitude held by the employee towards the organisation and its values’ and they highlight that an
engaged employee understands the business and is actively involved in improving performance
through team work for the benefit of the organisation” .Although the first concept was introduce
by kahn 1990 who define it as the harnessing of organizational members to their work roles then
he introduce the developed theory of engagement and disengagement and the dimension of
engagement physically, cognitively and emotionally (Markwick, 2009).
Total reword system it is one of strategic tools of human resource to retain and motivate
employees and keep their performance in high levels. Total Rewards encompasses the elements –
compensation - Wages and salaries , bonuses ,commission ,annual increasing or any tangible
compensation- benefits - insurance, Payment for injuries and illness or any intangible benefits,
and Personal and Professional Development– paid learning and development, coaching, career
pathway and Recognition (Heneman, 2007).UK reward management consultant Michael Rose
mention that the employee recognition may be formal or informal it is about giving attention to
special achievement performed by employee (Smith, 2014)
Leadership style, according to Alvin Arifin (Arifin, 2020) the leader should suitable
management ways and technique that influencing the employee and that is called leadership
style, there are a lot of theory regarding leadership and leadership style and there is a significant
a relationship between transformational leadership style and employee engagement According to
Christian, Garza, and Slaughter (Shiraz Ahmed, 2020).
Need For the Study SME’s have limited resources and they must allocate their resources
wisely, local private pharmaceutical companies related to this category, so in my opinion
employee engagement is critical factor for success in this category. Engagement has three level

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 physical, cognitive, and affective that translated into commitment and connection to his/her
organization then reflect on business outcome level to profitability
Objectives This paper aim to find out factor affecting employee engagement in local
pharmaceutical companies in Egypt and the relation between the Total reword system, and
leadership style and engagement so my sub question which I try to answer are
Sub questions

 What’s engagement and how we can measure engagement?

 What is Total reword system, component and how does it affect medical reps
engagement?
 What is leadership, how does leadership style affect engagement?
Conceptual framework diagram
The Conceptual Frame work represents the relationship between the independent variables & the
dependent variable.

Total reword system

Employee
Engagement
Leadership style
Dependent Variable

Independent Variable
Hypotheses
H1 There is significant relationship between Total reword system and employee engagement
H2 There is significant relationship between Leadership style and employee engagement

Literature Review
Shiraz Ahmed and Junaid Ansari (Shiraz Ahmed, 2020) attribute employee engagement into
four specific variables job fit, psychological climate, leadership style, and affective commitment
that affect engagement in pharmaceutical sector in Pakistan. They found after research that there
are a significant relationship between employee engagement and the four independent variables
in pharmaceutical sector in Pakistan. They have chosen 284 employees as a sample out of 365
participants from two pharmaceutical companies based in Karachi- city and capital of Sindh
province, southern Pakistan - And analyze the data statistically.
They observe in their study that the culture and local context are playing an important role in
applying the specific initiatives and tools used to improve the employee engagement. Moreover
the psychometric measures which we can used to assess employee engagement are diffrant
(Shiraz Ahmed, 2020).The research suggests that no significant difference in factor affecting

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employee engagement in developing or developed countries relatively and the same factors
affect in commitment and staying in their work or organizations.
They defined the job fit is an association with the employee's state of mind and behavior of
employee in performing the tasks in this job, and they observe that the more job fit the more
encourages the employees to be more involved in their jobs .However an enthusiastic bond with
the organization and psychological climate can affective commitment and have strong link with
employee engagements. Leadership styles the ways or initiatives taken by a manager to
motivate their subordinate toward objectives and there is a strong relationship between
transformational leadership and employee engagement (Shiraz Ahmed, 2020).They found out
that the job fit is the strongest factor that affects the employees engagement and the
psychological climate then leadership style factor but the fourth factor haven’t any significant
effect (Shiraz Ahmed, 2020) .
According to Aon Hewitt model of engagement Roxana Hinzmann, Martina Rašticová, Jakub
Šácha (Roxana Hinzman, 2019) showed in their research that the seniority influences
engagement in the mechanical engineering SEM’s. 5,078 employees as sample participated in
the engagement survey with 74 questions. As a conclusion, seniority has impact on engagement
where the senior show less concern when the matter related to rewards and recognition. SEM’s
unknown as a brand so it is so difficult to fulfill its vacancy or retain their qualified employee.
On the other hand the big companies that can hire and retain employees much easier than
SME’s. As they mention the biggest challenge in HR field is the change in demographic. There
are new generations- Generation Y For instance- hired with different fundamental and traits HR
and manger should understand the requirements of engagement of four main generations they
deal with Baby Boomers, Generation -X, Generation -Y and Generation Z (Roxana Hinzman,
2019).
The result of research show that the seniority play an important role in determining the level of
engagement where the more seiner the less engageable employee and the level of engagement
of employee that recently hired is high and the retention risk is low for this employee with
shortest length of service ( 2 years). So the fresh haired employees are 27% higher than more
engageable the old employees working for more two years. (Roxana Hinzman, 2019) . With top
management and senior paying more or increasing bonus don’t have such a significant positive
effect on engagement .Furthermore wellbeing have not relation or positive effect on the
engagement of employees with seniority higher than 11 years.
Assistant Professor Dr.K.V. Geetha Devi suggests in his research (Devi, 2014) that there are
three factor affecting employee engagements in pharmaceutical field work environment,
participative and leadership style and rewards. His objective in this study is to find out factor
affecting the employee engagement in pharmaceutical industry in India. His sample collected is
316 sample respondents in India and through his Questionnaire he observe that the work
environment, participative and leadership style and rewards affecting the engagement but he did
not the direction of affecting.
Mercy, Dr. Jivan Kumar Choudhary and R. Jemima (Mercy, 2019) show in their study factor
affecting on engagement in service industries - academic education for example, - in India, they
observe that the employee satisfaction is not enough for loyalty and productivity. Also they add

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that the concept of employee engagement beyond the job responsibilities and tasks and it is
necessary at all levels. Also they add that the education especially private institutes have high
rates of turnover so increasing the engagement levels is required for the academicians (Mercy,
2019).
The researcher observes some deteriorating in quality of education due to rapid evolving in
Indian education system. So the objective of their research is to utilize talented and competence
academicians and keep them engaged in their institutes. The collected sample is consisted of
385 academicians in private institutes in Faridabad .They designed a questionnaire closed-
ended, MCQ and Likert scale and Analyzed
They observe seven factors affecting engagement Organizational supportiveness, Procedural
justice, perceived trust, job characteristics, role efficacy, rewards & recognition and
empowerment in the private institutes in Faridabad, and they add recommendation for institutes
in the way of saving productivity and support the empowered work environment . They also add
that the Job enrichment enhanced productivity by adding experience to academicians. All this
initiatives will reduce absenteeism make academician’s high morale and enhance engagement
(Mercy, 2019).
Kumari Rashmi and Reeta Singh from Malaviya National Institute of Technology in India
(Kumari Rashmi, 2020) run their study related to this issue and how to build competitive
advantage through engagement of employees. They aim in this study to explore the factor
affecting the employee engagement after explore the concept of Engagement. They found that
only 15% of employees in workplace are fully engaged globally (Kumari Rashmi, 2020). Also
they add that employee engagement has direct positive effect on customer satisfaction,
profitability, and productivity. The conceptual frameworks of researchers are leadership,
teamwork, work-life balance practices, and workplace support.
They found that the engagement of employees have some indictors, when “employees are said
to be engaged when they are passionate, energetic, enthusiastic, and motivated about their
work. In contrast, they are disengaged when they are depersonalized, apathetic, withdrawn,
robotic, and estranged about their work “ (Kumari Rashmi, 2020, p. 2).For better understanding
the concept they apply employee engagement on Maslow’s hierarchy of needs, to determine the
level of engagement and motivation. At first level employee in disengagement stat he or she
demotivated, frustrated and not enjoy his work ,he is just survival ,he is usually actively search
for a new opportunities and he is low in productivity, the second level is safety there is no
engagement also however the employee believe that the supervisor and his work-mate managers
and colleagues do not support him, the next level about belonging so employee in this level start
to engage- almost engagement - and work in team work and grasp the organization values and
objectives but he did not see the carrier pathway, the forth level is called importance level when
the employee is engaged and understand that he is already engaged and he is core of teamwork
at the organization and make achievement at happiness state ,the last one is self-actualization
(Kumari Rashmi, 2020).
In public sector in the United Arab Emirates (UAE) ,Nada Al Mehrzi and Sanjay Kumar Singh
(Singh, 2016) try to grasp , predict and control factors affecting employee engagement because
the observe that the public sector facing particular challenge in introduce an exceptional service.
Moreover, they add valuable notes when they observed that the level of engagement is different

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among countries due to culture and variations of engagement of engagement due to value
,politics, economic state and culture are observed for example India , Japan and worldwide
(11%-45% and 13% worldwide by Gallup) .In UAE 14% of employee are actively disengaged
,26% of employee engaged (Singh, 2016) and therefore factors may be no effect in host has
significant effect in another host .The study designed to investigate the factors affecting the
employee engagement show that the organizational culture, leadership, perceived organizational
support, teamwork are independent variables where the Employee motivation is mediator and
employee engagement is dependant variable. At the end the researcher recommend further
research on factor affecting and show off the importance of concept and improve the body of
knowledge by providing the HR practitioner and business leaders with this research .
Covid-19 and employee engagement and how to enhance engagement during crisis was a
research written by Sunandita Kundu, Snehashis Nag (Sunandita Kundu, 2021) researcher
aimed in this research to know the impact of covid-19 on employee engagements and factor
affecting employee engagement during pandemic also recommendation to enhance engagement
during covid-19. first of all they define the concept in simple words it is” an employee’s level of
commitment to and participation in their company’s beliefs and goals” (Sunandita Kundu,
2021, p. 25) .Then they show off the importance of employee engagement, where productivity
increase by 22% or more engageable organization (Sunandita Kundu, 2021) .
Puneet Kumar show in his research the 5 V model value, voice, variety, virtue, and vision that
can improve engagement of employees. He also show the 5-C model by De-la-Calle-Durán and
Rodríguez-Sánchez that enhance engagement during pandemic – Conciliation, Cultivation,
Confidence, Compensation and Communication. Moreover he mention the effect of pandemic
on employees as anxiety , fatigue and dissatisfaction, he also mention the GREAT Model of
non-monetary improvement of engagement during crisis Growth, Renewal, Enabling,
Aspiration and Transparency, those three model can improve and enhance employee
engagement during covid-19 and in working from home condition (Sunandita Kundu, 2021) .
Hadziahmetovic, Lejla Pandzic and Nereida (Hadziahmetovic, 2022) Proven in their research
that there are appositive relationship between intrinsic rewards and employee engagement. The
researcher insists that the human resources is the most valuable asset in any organization and
can achieving the competitive advantage in the market. They also mentioned that employee
engagement is core component of work effectiveness .Furthermore, significant positive effect
proven that the Employee Engagement influence cash flows, profitability, turnover, and even
earnings per share, they added in their study that the reward system consist of intrinsic and
extrinsic rewards extrinsic one is related to tangible assets as basic salary , commission, on the
other hand intrinsic related to intangible reward as paid learning and development career
pathway and so on he said that the intrinsic one is most important than the extrinsic one.
Due to inadequate research in bosnia and herzegovina in the food industry and shortage of data
particularly in this virgin issues related to the impact of rewards on employee engagement .The
researchers decide to investigate the impact of rewards on employee engagement .Moreover the
researchers aimed to know which types of intrinsic reward affect employee engagement of six
different types of intrinsic reward by investigating role of clarity, feedback , skill variety,
autonomy, participation, and training .Sample of 200 employees are collected and analyzed .

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As conclusion they find out that there is strong positive relationship between intrinsic rewards
employee engagement and commitment. They add that the intrinsic rewards when combined
with employee engagement reduce the turnover rate and increase the retention rate of employee.
Limited number of respondent and the food industry in Bosnia and Herzegovina is significant
limitation (Hadziahmetovic, 2022).
Nima Khodakarami and Khalil Dirani proven in their research there are significant positive
direct effect of organizational support and loyalty in employee engagement (Diran, 2019). The
first purpose of paper is detecting the relation between perceived organizational support (POS)
and loyalty as dependant variables with employee engagement in dynamic condition,
considering different independent variables as areas of work for instance lawyer, doctor,
scientist, teacher,….and types of work as agricultural services/forestry,… also number of
employees and race, gender and education (Diran, 2019).
They add that perceived organizational support provides a safe workplace for employees for trial
and error and reduces stress in the work environment at all levels and positions in the
organization. Employee loyalty which they define as the strong desire to be part of an
organization also has a positive effect on employee engagement (Diran, 2019). They add that
anther derivers of employee engagement as leadership style, learning and development, work
environment, business policy and work procedure compensation and benefits.

So they collect and analyze data through survey from 2,408 respondents in different companies-
more than 25 employees - in USA - private and non-profit organizations- that more than 18 years
and run telephone interviews. The result are organization support and loyalty have significant
positive effect on employee engagement, but impact area of work as - independent variables –
haven’t any effect on engagement (Diran, 2019).

Omar Mohammed Ali Ababneh in his paper the meaning and measurement of employee
engagement a review of the literature mentioning that the term 'employee engagement' has an
important role in modern management for all professionals, scholar and consultancy due to his
result on the organization overall and business profitability. But for measuring the engagement
it’s important to define it and that is very difficult and ambiguous to define the employee
engagement concept cause of employee engagement has more than one dimension and
perspective and has not a clear specific conceptual framework (Ababneh, 2015). In his research
he wondered if employee engagement a new concept in business administration and academia or
it’s a previous concept as employee involvement, satisfaction and organizational citizenship.
(Ababneh, 2015)

Ababneh asked in his debate is employee engagement a positive psychological states translated
into involvement, satisfaction, empowerment, and organizational commitment or behavioral state
characterized by high performance and high energy levels , he attribute the first assumption to
academic and the second one to practitioners (Ababneh, 2015).

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Regarding measuring of employee engagement Ababneh mention in his research there are two
approaches of assessment scholars and practitioners approach. "Gallup workplace auditing "
(GWA) an instrument to assess and measuring employee engagement. Gallup workplace auditing
or Gallup Q12 an questionnaire developed by Gallup in 1998 that include 12 questions that
measure the role of clarity , material resource , development opportunity , recognition ,
management support , coaching , autonomy , meaningfulness , positive culture , social support ,
feedback and learning opportunity and that reflect the engagement (Ababneh, 2015).

Another assessment tool used in measuring of employee engagement Utrecht Work Engagement
Scale, this tool a three dimensions questionnaire assesses vigor, dedication, and absorption.
Although that we have more than tool to assess the employee engagement but usually this
questionnaire composition can overlap with anther terms of antecedents as satisfaction ,
motivation and so on. It’s seemed to be popular (Ababneh, 2015).

Organizational support, transformational leadership, and teamwork, this the driver of employee
engagement examined by Reny Diana and B. Medina Nilasari in their research paper facing
international environmental challenges by enhancing employee engagement (Nilasari, 2021).
Engagement has three dimensions vigor, dedication, and absorption. Vigor is characterized with
given a maximum effort at work, where dedication means full of enthusiasm and absorption is
associated with full of concentration of work. Collaborative teamwork is the important
component of an organisation and secure success driver, member work together to achieve a goal
and support each other in doing that. Leader–subordinate relationships associated with the
effectiveness of teamwork. Organization support also motivator to engagement, those are three
independent variable of researchers and their view of importance (Nilasari, 2021).

In financing sector in Indonesian, researchers assume their Hypotheses there is a positive and
significant effect between perceived organizational support, transformational leadership, and
teamwork simultaneously on employee engagement. 150 questionnaires distributed through 485
respondents, only 82 respondents fit with criteria, data collected and analyzed. All assumptions
are confirmed except teamwork, teamwork does not associated with any effect on engagement.
Organization support is the most effective on in engagement (Nilasari, 2021).

Discussion
There are more 33 definitions of engagement among companies (the real world), academic
and consultancy, companies convince the result of engagement as definition of it simply they use
terms as commitment, loyalty, advocate the organization. Engagement has significant positive
effect on business outcome, but has not rock the bottom in research and need more and more
study. Its effort given by the employee something beyond satisfaction or motivation, for
example.
Companies’ definition Vodafone defines engagement as a result of people being committed to
something or someone in the business – a very best effort that is willingly given”. Dell refers to

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being engaged as ‘giving time and talent to team building activities’., Nokia as ‘an emotional
attachment to the organisation, pride and a willingness to be an advocate of the organisation, a
rational understanding of the organizations strategic goals, values, and how employees fit and
motivation and willingness to invest discretionary effort to go above and beyond’ (Markwick,
2009, p. 7)
Academic Definition Academic Definition pay in attention the psychological dimension
(involvement , absorbed, energy, citizenship) also the outcome as company definition
(commitment ,loyalty advocate the organization and it values) For instance ,Kahn the first one
who define the term ;”The harnessing of organisation membersʹ selves to their work roles; in
engagement, people employ and express themselves physically, cognitively, and emotionally
during role performances’ , Maslach, Schaufeli and Leiter “ persistent, positive
affective‐motivational state of fulfillment’ (Markwick, 2009, p. 10)
Consultancy definitions Consultancy and institute have another view, it is about combination
for example, The Chartered Institute of Personnel and Development (CIPD)– suggests that the
engagement can seen as combination between organization and employee between psychological
and behavioral dimension. Something can’t be written in employee contract, It goes beyond job
satisfaction and motivation, Gallup another example for consultancy suggested that engaged
employees are ‘psychologically committed to their work, go above and beyond their basic job
expectations, and want to play a key role in fulfilling the mission of their organizations’,
(Markwick, 2009, p. 13) , IES- institute for employment studies- define engagement as. ‘A
positive attitude held by the employee towards the organisation 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 organisation The organisation must work to develop and nurture
engagement which requires a two‐way relationship between employer and employee’.”
(Markwick, 2009, p. 14)
Summary of definition depend on your view and position you will define the engagement in
companies they focuses on business outcome where academic and consultancy view the
psychological plus outcome. Usually companies focus on outcome and behavior and do not
mention a big role of organization. For academic psychological state and Behavioral/outcome are
important and the organization play some roles, where Consultancy and practitioners focus on
both psychological state and Behavioral/outcome and conceive that the organization play an
important role in enabling employees. Finally the engagement have both dimension
psychological state & Behavioral/outcome so I prefer this definition “Psychologically committed
to their work, go above and beyond their basic job expectations, and want to play a key role in
fulfilling the mission of their organizations’ Gallup 2015 . (Markwick, 2009, p. 13)
And according to provirus definition there are 3 type of employee in the organization. Gallup
2006 (Markwick, 2009). Engaged employee: Employees whose work with enthusiasm full of
energy and feel happy by belonging to their company. Those employees who make innovation
and accomplishment ,Not engaged employee: they are not enjoying working or even concern,
may be has not absence but low performance and productivity and Disengaged employees:
employees whose are actively searching for new opportunities, they are usually unhappy
depersonalized, apathetic, withdrawn, robotic, and estranged about their work.

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Importance of Engagement
Engagement is combine relation between employee and employer. Organization and worker
must contribute to make psychological state for employee and business outcome for organization
.So both contractors have benefits.
Employee outcome 1) Meaningful work: the relation between employee employer changed
today and it is important to every employee to find him or her-self doing the right thing and
adding value to his community and other psychological state of work it is not all about money ,
so engagement solve this issue because of fulfillment of employee perceptions.2) Health and
well-being: some reported report- Gallup- that engagement has appositive effect on physical
health by 62%, in my opinion Work life balance may be one of disadvantage engagement .
Organization outcome 1)Low turnover rate (retention) : 85% of engaged employees stick to
their organization but the most surprise matter that +40 % of engaged employees stick to their
organization even when it is struggling to survive - covid-19 For instance or any financial crisis
(Markwick, 2009), engaged employee equal happy person . 2)Loyal Customer: engaged
employee or happy employee aim to build loyal consumer because he have utmost realization of
how to fulfillment his consumer wants 3)Employee productivity: engaged employee more
motivated and full of enthusiasm and more productive , engaged employees perform 20% more
than other employees and as Kahn said ‘Engaged employees work harder, are more loyal and
are more likely to go the ‘extra mile’ for the corporation’’ (Markwick, 2009, p. 17)4)Good
reputation: engaged employee is sound of marketer but not paid he or she usually act as
advocator for his organization 5)Business Performance: engaged employee equal more loyal
and retained customers that means more money generation and more profit .

Models for engagement

Aon Hewitt’s Engagement Model The most famous model that Applied and tested over 15
years on more than 8 million employees across countries and different culture in America, Asia
and Europe. This verity of culture and period of testing give a lot of strength to this model .
Aone Hewitt design a model shows the engagement drivers and the indicator regarding both
engaged employee and business outcome.
The six drivers of engagement are 1) company practice that include communication, customer
focus,..2)The basic : that include job security , benefits ,…3)the work include work environment
, collaboration ,..4) Performance include learning and development, career opportunities,
promotion, ..5) Leadership includes top management and senior leadership types 6) Branding
includes reputation, CSR,
The three indication of engageable employee are 1) Say: that means an employee act as
advocator and talk positively about organization. 2) Stay: stick to organization means retained .3)
Strive – means do more to his organization to achieve it is goals; the four business outcome is 1)
Talent retention 2) productivity 3) loyal customer 4) profitability.
Deloitte Model of Engagement Five drivers for engagement, this Deloitte Model after what
they said “the war for talent “that they recommend this model to engage and retain skilled
employee which sourced from Deloitte website. The five derivers are 1) meaningful work 2)
great management 3) positive work environment 4) Career path way 5) Transparent leadership.
Each deriver consist of four recommendations or rules

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 1) Meaningful work that means : position-person fit ,self-government, empowered teams ,
time for rest
2) Great management: setting SMART goals, coaching, 2ndGneration mangers building,
Performance management system
3) Positive work environment: flexible work and attendance, humanistic environment,
recognition, diverse workplace
4) Career path way: on job training, talent mobility, dynamic learning, and learning culture
5) Transparent leadership: clear vision and mission, people investment, transpracity,
inspiration (deloitte.com/us/en/insightse.com, 2015)
There are more than another models or survey that show the factor affecting the employee
engagement and drivers to build it. For instance, The Zinger Model, International Survey
Research Approach, Blessing White’s Engagement model. But there is no generalizable model.
Every company has cretin stage or circumstances and should design the model which fitted to its
situation.
Variations in Employee Engagement Tools, model and initiatives can vary according to a lot
of variables , Gender, age / generation, personality traits, company life cycle stage, Ethnicity,
seniority and culture so HR practitioners and business leader must design their model and
engagement drivers according to all different factors mention before, Kia motor (UK) For
instance build their own model to improve engagement by five drivers1) Leadership
development 2) Employee recognition 3) Internal communications 4) Organizational
development 5) Employee development.

Measurement of Employee Engagement

It’s an ambiguous matter to measure what is not have clear common definition or even factors or
even one perspective. From practitioners view there are doubt to define or evaluate the concept
or measuring the initiatives outcome. From scholars and academics view there is no common
definition of engagement, it’s the same of involvement or commitment or maybe something new
in uncertainty world.

Employee engagement has psychological, cognitively, and behavioral perspectives and

measurement depend on our assumption of engagement. Practitioners consider the engagement
as behavioral state and this state can change (decrease or increase) by modifying dependant or
even independent variables. On the other hand a lot of academic research considers the
engagement as a psychological state (Ababneh, 2015)

Similarly, employee engagement measurement will different according to what definition and
concept we considered. Practitioner will measured the business outcome or initiatives outcome in
other words result of engagement equal measuring of engagement. Where academics and
researcher will focus on a psychological state.

Both purposes practice and research have instruments, but before showing these instruments we
can’t forget that the company should design the engagement model suitable to its requirement
and also can measure level of engagement by appropriate way they see.

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The Gallup Q12: in 1998 Gallup established their own questionnaire to assess the employee
engagement .Furthermore it’s used as a management tool in change management. More than
7,000,000 employees have been run this questionnaire in more than 112 countries . This
questionnaire consist of 12 questions rating from 1-5 scale (Likert) 1 reflect to strongly disagree
5 strongly agree in addition to some question answer with yes or no (don’t know/does not apply).
Those questions are (Bakker, 2010, p. 16)

1. Do you know what is expected of you at work?

2. Do you have the materials and equipment you need to do your work right?
3. At work, do you have the opportunity to do what you do best every day?
4. In the last seven days, have you received recognition or praise for doing good work?
5. Does your supervisor, or someone at work, seem to care about you as a person?
6. Is there someone at work who encourages your development?
7. At work, do your opinions seem to count?
8. Does the mission/purpose of your company make you feel your job is important?
9. Are your associates (fellow employees) committed to doing quality work?
10. Do you have a best friend at work?
11. In the last six months, has someone at work talked to you about your progress?
12. In the last year, have you had opportunities at work to learn and grow?
This good attempt to measure the employee engagement, but this attempt increase complexity
and ambiguous of concept cause of we used the same question in job satisfaction assessment.
Moreover the questions assess the environmental conditions and do not measure the engagement
as psychological state. A lot of overlapping in Gallup Workplace Audit (GWA) appeared.

The Utrecht Work Engagement Scale (UWES): anther three-dimensional questionnaire that
assess employee engagement and widely used than Gallup Workplace Audit in academic
research. Based on the three main components of engagement vigor, dedication, and absorption,
more than 60,000 employees have been run this questionnaire which available in 21 language,
and administered in Sweden, china, south Africa, Finland, Spain,… .17 question with frequency
scale ranging from 0 to 6 (zero = never and 6 = always). Those questions are (Bakker, 2010, p.
17)

1) At my work, I feel that I am bursting with energy

2) I find the work that I do full of meaning and purpose
3) Time flies when I’m working
4) At my job, I feel strong and vigorous
5) I am enthusiastic about my job
6) When I am working, I forget everything else around me
7) My job inspires me
8) When I get up in the morning, I feel like going to work
9) I feel happy when I am working intensely
10) I am proud on the work that I do

14
 11) I am immersed in my work
12) I can continue working for very long periods at a time
13) To me, my job is challenging
14) I get carried away when I’m working
15) At my job, I am very resilient, mentally
16) It is difficult to detach myself from my job
17) At my work I always persevere, even when things do not go well

Also the overlapping of antecedents is observed as involvement, organizational citizenship,

employee’s satisfaction. Finally the measuring instruments are valued attempt to measuring the
employee engagement in spite of ambiguous of concept.

Impact of employee engagement on job performance and business performance

Job performance: is total effort executed by employee to achieve a signed task. Many researches
and studies study the relation between job performance and engagement. Employees who are
engaged usually used their full both effort and perception to achieve their organization goals,
from the employees perspective engaged person doing the meaningful work and that support the
positive emotions and feel of autonomy. Organizations always demand of that people who are
able to get their tasks done cause of success of organization depend on those people. In research
the impact of employee engagement on the job performance in Pakistan Arween Anwar, Dr.
Sadaf Kashif, and Dr. Robina Yasmin introduced empirical proof that employee engagement has
a positive and significant impact on the job performance (Arween Anwar, 2022). Collecting and
analysis data from 150 respondents, by using the leader member exchange (LMX) as leadership
style.

Organization performance can detected through a arbitrage between the pervious settled goals
and current objectives and goals the organization achieved. Similarly, business performance
directly affection with high engaged rates of employee’s .The more percent of engaged people
the more business performance metrics. Mathushan. P introduced an empirical proof in his study
employee engagement and firm performance - Sri Lankan Apparel Industries- that the firm
performance is positivity affected by employee engagement (P, 2022). Furthermore Seyed
Abdorreza Payambarpour and Lai Wan Hooi introduced empirical proof that employee
engagement has positive impact on business performance even financial outcomes (Hooi, 2015).

Employee engagement in SME’s

When all members in the team do the best every day, organization’s goals achieved. That is the
result of employee engagement. But employee engagement in SME’s slightly different and also
easier and more important. Leaders or HR practitioners in SME’s can enhance engagement and
control initiatives easier than the large corporate.

SME’s are the core and backbone of economies particularly to emerging markets. SME’s play an
important and vital role in Egypt, about 90% of companies in Egypt are SME’s and 75% of

15
employees are worked in SME’s (http://acumenconsult.org/)and pharmaceutical SME’s one of
those. Usually SME’s face shortage of resource or have limed resource and a lot of restrictions in
competition, so must allocate resource in wise manner. Moreover large companies have
reputation and branding name unlike SME’s which haven’t the same and should build a strong
positive culture, so in my opinion engagement is success driver for SME’s than large companies.
Particularly in small enterprise mangers can regular communicate with their teams and transfer
values and inspire them unlike large organization.

In UK organizations, in 2009 David MacLeod and Nita Clarke develop engage model for SME’s
that can smoothly applied in SME’s, four engagement drivers

1. Strategic narrative: a clear mission and vision with a SMART goal goals should be a
common story or language which inspire every team member in the organization
2. Engaging managers: the relation between team and team leaders which can make or
break a strong performance , transformational leadership style can improve those bounds
which focus on four pillar 1) Idealized influence ( charisma of leader ) 2) Individualized
consideration 3) Inspirational motivation 4) Intellectual stimulation
3. Employee voice: empowerment of employee an easy way to engaged people, when
employee feeling of partnership in organization, he or she will be more participant in it.
Empowerment could be done through survey or a suggestions box.
4. Integrity: say what you will do or “say-do” attitude, embedded a trust as a part of
organization culture could easily found through integrity. Set a clear expectation
supported by everyone from CEO to office boy (Roopa, 2022)

Total reward system

Total reward rather than phrase “compensation and benefits” which is not used in recent years.
Total reward system is complete regime which put people on business strategy and consists of
four component 1) compensation 2) benefits 3) personal/professional development and 4) work
environment. Well designed systems attracted and retained talented employees and it usually
used to make employees performance in peak It includes everything – tangible or intangible- that
the employer introduce for employees in employment relation.
Compensation Any tangible or monetary reward usually related to compensation and that
include basic pay, payment increasing and incentive 1) basic pay : after job analysis – job
description is the outcome of this process - organization tend to make job evaluation to evaluate
the basic salary of each job position based on the value of jobs and what is add to organization.
And there are two ways to methods to determine the basic pay or basic salary 1) Skill-based pay
and 2) broad banding (Heneman, 2007).
Skill-based pay based on qualifications and broad banding based on range where min and
maximum salary of the job. +80% of HR practitioners prefer the broad banding method.
Business leaders and HR practitioners should design or chose the method which more convenient
and ease to support employees to achieve the organization goals.

16
Generally employees prefer Flexible benefits, variable pay and individual rewards. 2) Payment
increment: organization can increase the basic salary by two methods performance based or
promotion based , promotion pay according to specific criteria as No of years or previous
performance and performance based – pay for performance- is related to productivity of
employee and affect the employee attitude. 3) Incentive : a cash or stock that are the two forms
of incentives , incentive may be individual as commission or bonus or group- improve
productivity at about 13% - or of for whole companies improve productivity at about 6%
(Heneman, 2007), usually individual incentive improve the productivity by about 30% - and
employees prefer the first one .
Benefits: Intangible compensation. Benefits play an important role in maintains satisfaction and
commitment of employee and enhance their productivity (Rezaa, 2021). As employer it is
important to ensure that is a suitable return on their investment from benefits plan For instance
20$ increscent in basic salary is more important to employees than retirement plan except aged
employees. Examples for benefits Medical insurance, Social insurance, retirement & investment
plan, Disability and health care plan,..ECT.
Personal and Professional Development It’s not clear that personal and professional
development opportunities reflect on business outcome or organization strategy that from
employer perspective except that is closely related to work-skill and will add value to
organization. So, personal and professional development should design carefully and align with
business strategy. Personal and professional development as learning and development,
performance management and coaching, career growth and development all that initiatives
should translated in a sharpness way into competitive edge and unique capabilities. Finally
Personal and Professional Development experiences should serve the organization’s strategic
Plan.
Work Environment Generation Y is in work plan and that generation is different in their
perception, values, motivation and culture. A positive work environment nowadays is very
important particularly to the new generations. Work Environment is one component of three
pillars when we design the total reward system work environment includes recognition, job
design, and work /life balance. 1) Recognition: according to some (Heneman, 2007) nonfinancial
reward (Recognition) equal financial incentives in impact on profitability and customer service ,
Recognition less cost than other financial initiatives as learning or insurance or any other
component .
2) Job design: it’s not about physical space – Although it’s important - but psychological
characteristics and perceptions of position or job. it’s about meaningful or challenging of work ,
when employee fell he or she add value in his work that motive him a lot of research add that is a
significant relationship between employee motivation and psychological perceptions of a job
(Heneman, 2007). Job design or meaningful of work is one element of Deloitte Model of
Engagement.
3) work-life balance: Flexible work attendance or schedules and compressed work schedules has
significant impact on performance, job satisfaction attitude (Heneman, 2007) .Impact of work-
life balance has more impact on employee than mangers, compressed work schedules enhance
employee attitude while Flexible work attendance improve performance more than attitude.

17
Positive work environment is one element of Deloitte Model of Engagement. As summary of
researches, Total reward system compositions are
1) Compensation Basic salary , Salary increment (promotion, Performance ) ,Incentives
(commission ,bonus)
2) Benefits Medical insurance ,Social insurance ,retirement plan & investment
,Disability and health care plan
3) Personal and Professional Development : L&D ,Career Growth/Development
4) Positive Work environment: job design, recognition, Work/life balance.

H2: There is a significant relationship between Total reward system and employee engagement
Relationship between total reward system and employee engagement
In their research The impact of a total reward system of work engagement (Crystal Hoole, 2015)
Crystal Hoole and Gabi Hotz – where they faced a big issue in south Africa that they are the
most disengaged employees all over the world according to Gallup Consulting- used the same
model of total reward system that we used Total reward system is consist of (1) compensation or
base pay, (2) performance and career management that mean professional and Carrere path
development , (3) contingency pay or variable as performance pay (4) quality working
environment or recognition , (5) benefits or intangible reward (6) work–home integration or
work life balance. The conclusion of this research that total reward system is one of initiatives
that can used to improve employee engagement. However there is no one model can fit all
companies and all employees. So HR practitioner’s and business leaders should to design the
most suitable model to fit the their organization goals and strategy
In their research (Mina Manjurul Hossain Rezaa, 2021) proven that the total reward system is a
vital element in employee performance .And the major reason of total reward system is to
recognize the effort and contribution of employee. By increasing reward we directly and
temporary increase the engagement. Also they considered the total reward system is consist of
Compensation, Benefits , Work & Life Balance , Recognition , Career Growth/Development ,
but the add that the compensation and tangible reward is the most powerful tools and component
of total reward system element . As conclusion of previous studies the finding are:-
1. Total reward system is significant initiatives to improve employee engagement and
employee performance which directly reflect the business outcome.
2. NO one model can fit withal companies all employees and specific variation must be
considered when we design a total reward system
3. Some element is effective than other in total reward system according to age , sex ,
egomaniac state , culture ,generation …ECT
Leadership
Leadership is important topic in any event allover industries and sectors all over the world, is
spite of there is no even widely approved definition for leadership, we have more than 60,000
books related to leadership aspect. the importance of leadership as concept is lie in the business
outcome of effective leadership ,companies as General Electric , Chrysler , Nissan and Renault
turned around case studies (Jack Welch , Lee Iacocca and Carlos Ghosn) are examples for what
the effective leader can do - from bankruptcy to most profitable organizations – . Almost

18
researcher and practitioners define the concept leadership based on the process of leading as “
the ability of someone to motive followers in to objectives “ , leadership as a concept have a lot
of academic and non academic research and studies .

History of leadership
In the be gaining of twentieth century (1900-1930) the leadership focus on the control and power
of centralization for example, the definition of leadership this days is “ the ability to impress the
will of leader on those lead and induce obedience , respect , loyalty and cooperation “
(HOWIESON, 2019, p. 48) conference of leadership 1927 , in my opinion this definition is
accepted in industrial revolution culture . After1930 researcher focusing of traits and influence
more than controlling and dominance. In the next a decade researchers focusing more on
behavior of person and the interaction with his team or group. In next three decades the scholar
develop the contingency theory with more than one models and style for example, situational
style of leadership. briefly the leading process and reaction of leader depend on his traits ,
subordinate and their maturity and the situation .In 1970 the organization behavior is floating
and the main function of leader is to set the objectives and maintain the organization or group to
achieve this goals (HOWIESON, 2019) ,in 1980 the topic of leadership was brining to apex of
academic and even popular research to understanding the nature of leadership and we have may
be anther “ philosophy of definition and theories “ transformational theory of leadership “ and it
focus on values , authentic and inspiration (HOWIESON, 2019)

Date Theory Model or style Main Idea

Before 1900 The great man No analysis Leader born not made
theory
1900-1930 Traits theory Leader have some personality -Leader born not
Traits made\
- Control and power
centralization
1930-1940 Behavioral theory Leader and interaction with his behavior of person
subordinate and also maturity of and the interaction
subordinate with his team or group
1940-1970 contingency - Situational style subordinate and their
theory - leader member exchange - maturity and the
LMX- situation
- path-goal theory
1970 -1980 Transactional Transactional organization behavior
1980+ Transformational Authentic Psychological or
Spiritual value based
Ethical
Servant
Shared
Adaptive
Distributive(communication-based
style)
Source: the author

19
Leadership level
Before we start talking about the leadership practice or styles or how to apply this theories we
should ask which level of seniority I am in to choose the most appropriate style which fit with
the level. We have three levels of leadership strategic (organizational), group and dyadic
(HOWIESON, 2019) . And this level is different relativity in practice as we discus.
1) Strategic leadership it is about leading all organization or all party or all country and leader
in this level is responsible for full success of organization in all diminution specially
sustainability and profitability. The requirement and styles is different from supervisor For
instance ,strategic leader typically is this level usually interested by strategy , how we can excuse
, culture , influence , innovation ,business performance , profitability ,external factor that
influence the business and how to adapt ,… ,,est. This level of leadership full of stress, criticism,
pressure but professional leaders can overcome, this level in organization can be one of c- suit
(CEO, CFO,..) Director, president or chairman.
2) Group leader in this level the leader is focus on influence of followers on collective
operation that defines the group performance. Typically is this level usually interested by how
the work is organized and allocate the resource to full utilization , engagement and commitment
of members , develop learning and innovative practice , how can team collaborate to achieve the
organization goals . Usually this level in organization can be department head, section head.
3) Dyadic leader (HOWIESON, 2019) in this level leader focus on communication and direct
relation with his subordinate .This position typically focus on how he can support them , what
the strength ,weakness point of individual and how he support , how he /she can motivate and
improve commitment in his team . Stating from team leader or supervisor position this level of
leadership is.

Organization context
In any organization types ( private, government , non government ) manger are being as crazy
person , he have a lot of unlimited work ,he have roles and responsibilities ,he have power, and
resources and circled of restriction (time, budget , internal and external factors ) and external
factor must that he deal with or cope . In any organization there are objectives, he set this
objectives or contribute in goal setting process and he is the first responsible person for achieve
this objectives and he own some limited resource (physical, financial, human and knowledge
resource), and he should allocate this resource in a professional manners to achieve this goals.
And he at the same time has demands from his subordinates he should respond to this demand
and prefer. Typically he connected or deal with his / her boss, higher executives, direct
subordinates , indirect subordinates , lateral superior , peers , lateral juniors , officials in
governmental agencies , clients ,suppliers , colleagues in the same profession ,important people
in this community .

Leadership theory and philosophy

Grate man theory

The leader born and leadership cannot learned, the beginning of last century the great man theory
as approach is dominant. In this theory the leader born leader and he can influence the other and
dominate them. He is leader because he own special and unique attributes as bravery, smartness,
inspiration and so on.

20
Traits theory
Researcher in the first three decades of last century tries to analyze the nature of leadership and
understand the skills, motives, personality, and values of individual leaders. Personality traits
as self- confidence, high energy level and emotional stability. Motivate means types of stimuli
as achievement, independence and esteem. values means the personal standers which determined
what is right and what is wrong , what is ethical and what is not , skills refer to what can he do
in effective way . Finally the finding of scholar are some traits through it we can distinguish and
predict the leaders this traits are 1) high energy level and stress tolerance 2) self-confidence 3)
Internal locus of control 4) emotionally stable and mature 5) power of motivation 6) integrity 7)
charisma 8) Achievement oriented 9) need for affiliation .

Behavioral theory
The success of leader and effectiveness depend on his behavior not his personal traits. In last two
theories the subordinates or followers are neglected and not considered at all. In Behavioral
theory subordinates and maturity of followers are considered to be effective leader, researcher
ask in this theory what should leader do to be a good leader and that the first time to talk about
leader build not born. In Behavioral theory there are main two type of behavior style 1) task
oriented 2) people – oriented (also there are change-oriented, participative leader ,coaching
leader.. ). 1) task oriented Behavior : this behavior is interested by achievement by getting thing
done he typically set the objectives , clear the Roles and assignments, organize and allocate
resource , Monitoring the performance . he usually focus on his team achievement rather than
development . 2) people – oriented: relation oriented leader focus on people and their needs .he
is oriented with team learning and development more than day to day procedure , he topically
support , motivate and recognized his team

Contingency Theories
In this theory, to be effective leader you must to do, followers satisfaction is objective in all
situations whatever this situation, in Contingency theories a now variable is consider which is the
situations and how can the situation affect the leader‘s effectiveness and how the leader adapt
with situations. That means the leader can effective in situation with subordinate types and he is
the same leader can be in ineffective when the circumstance or subordinate is changed. Moreover
we can change the leader with a particular style with anther because of the situation is not fitted
with his style according to” Situational favorableness “. there are a lot of style and models
related to this theory 1 ) path-goal - leader clarifying the goal and reducing blocks or obstacles
in the road 2) situational theory of leadership 3) Multiple-linkage Model or integrative model
Transformational and transactional theory
In the beginning of 1980 the first use of “Transformational leadership” as a term by James Mac
Gregor Burns and this is the second school of leadership or anther philosophy “ psychological
philosophy “ . The transactional leadership is a behavior or style through it member and leader
are exchange their need, organization or leaders needs target, achievements and employee need
reward, it is win - win situation, so the transactional leadership based on 1) reward 2) Active
management business leaders meet the need of follower or employees through reward when the
employees achieve the targets or goals (Azka Ghafoor, 2011) . Where transformational
behaviors is based on or focus on four pillars 1) Idealized influence ( charisma of leader ) 2)
Individualized consideration 3) Inspirational motivation 4) Intellectual stimulation (Yukl, 2013) .

21
1- Idealized Influence (Charismatic Influence),to be a transformational leader you should as a
role model to his/her subordinates , this model translate the follower values , ethics and principle
on the ground and so as result followers follow and respect him, 2- Inspirational Motivation,
Leaders of this style articulate the long term vision and inspire followers to see the catchy
blueprint of this vision with meaningfulness manner 3- Individual Consideration, matching the
business or organization need with follower needs is core of transformational leadership . He
typically coach and monitor his subordinate and know their needs. Moreover he provides them
with resources to achieve the common goal of individuals and organization. 4- Intellectual
Stimulation, leader promotes subordinate logic thinking and intelligence aptitude in order to
create new ideas and innovate. He always discus lesson learned and evaluate old situations in
different manner and build the second generation- 5 th level of leadership - . We have more one
style Authentic, Spiritual, Ethical, Servant, Shared, Adaptive, Distributive (communication-
based style).
Relationship between engagement and leadership (transformational style)
“Employees Leave their jobs because they are unhappy with their boss” (Marie Carasco-Saul,
2015, p. 39) data from 330 companies in 50 countries. Yes, it is about leadership, this reports
encourage scholars, researcher and practitioners to investigate the relationship between
leadership and employee engagement .In various industries in South Africa zhu, Avolio, and
Walumbwa detect the relationship between transformational leadership and employee
engagement by collect and analyzed data from 188 respondents and they found that there is a
significant relation between transformational leadership and follower engagement (Marie
Carasco-Saul, 2015).
In china among 193 respondents, Aryee and Walumbwa detected the effect of transformational
leadership on employees’ work engagement, and the result is there is a positive and significant
effect on work engagement from transformational (Marie Carasco-Saul, 2015). It is clear that
leadership is the most significant deriver of employee engagement (Senger, 2017). As conclusion
of previous studies the finding are:-
1. Transformational leadership style/philosophy is the most effective derivers of employees
engagement
2. Transformational leadership style that affect employees engagement have four pillars 1)
Idealized influence ( charisma of leader ) 2) Individualized consideration 3) Inspirational
motivation 4) Intellectual stimulation
3. Transformational leadership style makes employees more self-confident and innovative.
4. Transformational leadership style is the most significant deriver of employee engagement

Conclusion
The purpose of this study is to clarifying the factor affecting the employee engagement in
pharmaceutical sector in Egypt and the proven evidence role of employee engagement in affect
the all business outcome for example, reducing the turnover rate and enhance the employee
performance by 20% , moreover the customer satisfaction and profitability simply overall
business performance.
From the definition of employee engagement to employee engagement measurement there is an
overlapping between definition, it old or a new concept, what are factor affecting the term.

22
Moreover there is no an accepted or assembled on it model can be generalized all over the world
in all sectors that cause of different variables and circumstance in each case and that what is my
research mention, employee engagement organization model can different according to industry ,
sex, age ,generation, country , economic state , culture and sector.
we can enhance employee engagement through two main variable total reward system , this
system is consist of four pillars compensation- tangible benefits- , benefits - in tangible
compensation, career development and work environment. Another variable that will improve
employees engagement is leadership style, transformational leadership style are common use in
strategic level but also can applied in group and dyadic levels. This style has significant positive
relation with employee’s engagement. transformational leadership style focus on four pillars
Idealized Influence ,Inspirational Motivation, Individual Consideration, Intellectual Stimulation
,and it is the most positive significant deriver of employee engagement , Business leaders and
HR practitioners should strive to select the most suitable model of engagement to more
commitment and loyalty of employee according to their organization maturity , industry
,generation, country , economic state , culture and sector.

Recommendation

 Business leaders and HR practitioners should focus on employee engagement as secure

pathway of business outcome improvement
 Business leaders and HR practitioners should consider employee engagement one of
sustainable and successful deriver of company and develop measurement tools to track
and control employee engagement.
 Employee engagement initiatives and tools are relative and what is applicable in
company and country cannot applicable in anther so they should design company
engagement model that fitted with business objectives and strategy because of a lot of
variables .
 There is some limitation to use broadly this finding in this research but I claim that the
two variables are applicable in same counties like Egypt in economic state, culture and
industries as pharmaceutical in maturity.
 For practitioner, measuring of employee engagement initiatives must reflect business
outcome and the organization have a significant role to empower employees.

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