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Employee Engagement

HRM & STRATEGIC HRM

Employee Engagement

Introduction:

This report is based on the study on the functions of human resource management and how it can be
effective in ensuring employee engagement in an organization. HRM is used to make a coherent and
effective plan to manage an organization so that its employees can prove to be a valuable asset to the
company. HRM plays an important role in deciding whether a company will be successful in the long run
or not. If the HRM of a company is not competent, it can result in poor handling of ethical dilemmas, lack
of productivity in people and as a result the company does not get the competitive advantage it desires to
hold its ground. Strategic HRM highlights how a proper plan can be strategically implemented so that the
employees and employers can make an organization thrive. SHRM directly connects employees with the
core plans, objectives and goals of a company. This gives a competitive advantage to a company and also
ensures desired business performance.

Employee engagement plays an important role in the well-being of an organization. If the employees are
not satisfied with the company they are working for then this will result in low productivity and morale
among the employees and the employee turnover will increase which will make the company slower in
achieving the goals because most of the resources will go on training the new employees and going
through the hiring process again and again.

Theoretical Analysis of Ethics and Corporate Social Responsibility

Employee engagement is one of the most important tasks of human resource management as it directly
affects the productivity of an organization. Employee engagement is a concept which usually means that
the dedication and loyalty that an employee has towards a company. The work environment that is
provided by the organization directly contributes towards the engagement of the employees and as a result
the productivity of a work place. The employees that are fully engaged to a company are not there just for
the paycheck but also for the well-being of the organization they are working for hence contributing to the
success of the company. Example of employee engagement includes the measure taken by Elon Musk
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Employee Engagement

when he told all the employees to report every injury to him directly so he can take safety measures to
perfect the system in such a way that no such injury happens again. Due to this measure, the incidents
were reduced by 50 percent in the car assembling plants of Tesla.
In today’s marketplace where every organization is trying to get a competitive advantage, investing in
employee engagement can be a beneficial deal as it can help in decreasing employee turnover as
employees are less likely to leave an organization which in return saves the company from training and
recruitment costs.
Factors affecting Employee Engagement
There are a lot of factors that affect employee engagement. Job opportunities and work relationships
are important factors as it matters to employees what job opportunities they are getting and whether these
opportunities allow them to discover and engage in their field of interest. If an employee loves working
around his colleagues then certainly productivity will increase. If the growth opportunities in a company
are frequent then employees will be motivated to work there because of the promotions they will be
getting on each upgrade. When employees will feel that their efforts and ideas are appreciated by the
organization they work in then they will be engaged with the organization. Family and social obligations
can sometimes be a hindrance to employee engagement because sometimes employees are facing family
issues that are outside their workspace but they are unable to focus on their work and function properly.
This makes the employees inefficient and unable to perform well for the success of an organization. This
can be handled by giving employees time offs if they are facing some serious issues at home so that they
can sort that issue out and then come to work with a fresh mind. Competition from other organizations
can keep employees from engaging in their work to a full extent. If employees are satisfied with the
packages they are getting in an organization then they will certainly be functioning member of an
organization but if other organizations ensure better wages along with better benefits then it will become
harder to engage employees.
Strategies influencing Employee Engagement
1) Recognition: Employees usually feel thrilled to perform their duties in an organization if they
know that their work has an impact on the outcome of the organization and if the positive
outcome of the organization is shown by appreciating the employees verbally or with prizes. This
makes the employees enthusiastic about the outcome of the organization as they know that it is
the outcome of their hard work (Dickson, 2010). So a strategy should be implemented to ensure
that employees’ recognition is a crucial part of the employee engagement plan by HRM.
2) Motivation: Employee motivation is a very vital part of achieving employee engagement.
Motivation can come from a lot of places mainly the superiors in an organization that has good
character so that employees can learn from them and also yearn to be better at their jobs to one
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day reach their positions. Other ways can be appraisals by the organization like bonuses, pay
raises and offering more complex and giving leadership opportunities to deserving employees so
that they know that their hard work is being appreciated.
3) Relationship development: The relationship of an employee with the organization and its people
is a key factor that can ensure good performance. The loyalty of the employees and their trust in
the organizations they are working for can give a clear view of what their work ethics will be. To
ensure that the relationship never goes stale, there should be meeting in which higher
management and lower management employees sit together and discuss their problems and
issues. In this way, the lower scale employees will not feel alienated by the organization and will
have a trusting relationship with the company.
Advantages of Employee Engagement
 Employee Satisfaction: Employee engagement guarantees employees satisfaction and as a result,
it can give a competitive edge to an organization if the employees have good word of mouth
about the company they work with. This can boost the reputation of a company. Such employees
have a higher level of loyalty and commitment to an organization and their contribution can
directly lead to the success of the company. The satisfied employees collectively prove successful
in fulfilling the objectives and goals set by the company (Walker, 2021).
 Productivity: Business success is also achieved by employee engagement. When employees
become highly engaged their motivation increases and the positive outcomes of those employees
also increase. According to research, organizations with a higher level of employee engagement
are 40 percent more productive.
 Retention and Recruitment: retaining talented employees is a key to the success of every
business organization. The decrease in the risk of employee turnover can ensure the
progress of the organization as with the passage of time, old employees become more
trusty and loyal.

Twin Concepts of HRM and Strategic HRM

HRM follows a fragmented approach, which stresses on applying management principles while managing
people in an organization. As against this, SHRM tracks an integrated approach, which includes lining up
business strategy with the company’s HR practices. This strategy should be aligned with the
organization’s overall business strategy and be designed to help it achieve its business goals. Hence, the
twin concept of HRM and SHRM is very important as both are needed to properly execute management
plans. Strategic human resource management aims to recruit, manage, and develop workers to assist the
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Employee Engagement

organization accomplish its long-term goals. When successfully executed, it guarantees that all aspects of
people management shape the culture and environment needed to produce value and meet productivity
targets. Structure, quality, culture, values, and devotion on a grand scale and people concerns with a
longer time horizon are prioritized. The Human Capital Strategy should include several different
elements, including a plan for recruiting and retaining the best talent, developing and managing employee
skills, and motivating and rewarding employees. Another critical element of Strategic HRM is the
development of an HRM organizational structure that supports the implementation of the Human Capital
Strategy. This structure should be designed to ensure that the HRM functions are integrated with the rest
of the organization and that they can work together to achieve its business goals.

Employee Engagement implemented in The Hershey Company

Employee Engagement has garnered the interest of many organizations in the past few years and
organizations have come to know that the most valuable asset that can be used to achieve the goals and
objectives of the company, in the long run, is its people. There are higher chances of productivity in the
employees of the company that have been working with the company and have a special and trusting
bond with the organization.
The company that I have chosen for this analysis is Hershey. This company that originated in America
has the largest production of chocolate in the world and is enjoying its glory of success due to its great
HRM department. Hershey has come a long way since its humble beginnings and it is certainly aware of
how the success of the company can directly relate to the relationship of a company with its workforce.
As research shows that most people drag their feet to work if the work they are doing is not remotely
interesting and most of all they have a weaker bond with the organization they are working for. In 2022
Hershey’s employee engagement increased by 11 percent according to a survey done by them. Hershey
works on some hard and set rules in terms of its HRM managing the employees.
The principles Hershey work on is as follows. Making the right Choice means that hiring the people that
are right for the job. This means that sieving the most brilliant minds that can give a competitive edge to
the company by being simply splendid in their areas. Hershey is known for their strict hiring approach in
which nepotism or any other type of favoritism is discouraged so that equal opportunities may be given to
all people that may be the right fit in this puzzle box. Recognizing a job well done has always been in
Hershey’s check box as they know that the employees need to be frequently recognized, appreciated, and
awarded for their efforts. To ensure this, Hershey collaborated with Globoforce several times to take a
work recognition initiative in 2019 to make sure that all employees get the recognition they deserve. It
was revealed that 70 percent of the employees were recognized for their efforts in the form of awards and
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Employee Engagement

promotions thus giving credit to their services to the company. Developing the people of the
organization is another initiative that Hershey is keen on exploring. If the company does not provide
career growth and other benefits to its people then the employees will not be motivated to give their
hundred percent to the company so HRM plans a strategy in which employees get health benefits and
their salaries are revised annually so that a sense of growth and development maintains. It is a way of
showing that the company cares for its employees and is also working for the employee’s benefits.
Starbucks is leading in this as they have a good reputation with employee relationships along with
benefits but Hershey is also devising plans to improve in this area.
Hershey believes in providing time to think, create and rest. An overworked employee cannot perform
his best and is a liability to the company so initiatives are taken by the company so that employee’s office
hours are not continuous and there are breaks for stress relief. Maternal leaves, paternal leaves, and short-
term disability policies are followed by the company to give employees the relief they deserve.
So this is how the multinational company Hershey is functioning properly by synchronizing its HRM with
the people in such a way that a sense of connection is built between the company and its employees.

Reflection
This paper clarifies that there is no one correct way to approach the management task of an organization.
HRM and SHRM need to be implemented side by side for an organization to work properly. As discussed
earlier, HRM is a fragmented approach while SHRM is an integrated approach to the management of an
organization should make strategies for a company in short term but also make long-term strategies that
are linked with the overall business goal and objective of the company.
There should be clarity in communication and integrating HRM into the strategy of the company will help
clear the gap between employees of the company and the establishment. Employees will not feel
disconnected from the company during big organizational changes because HR will be there to effectively
communicate with the entire workforce. HR should help analyze how the new strategy made by the
organization can affect the wider aspect of the organization like the processes and strategies that are
already in function should not be affected by the new strategy in a drastic way otherwise there would be
losses due to an incoherent business plan. HRM should also help the organization in clearing the skills
gap through talent management plans and succession planning. HR’s role in developing organizational
structures and implementing new training and development systems is invaluable. To make their work
even more effective, having them at the table during strategic growth discussions is vital. This way
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Employee Engagement

they’re able to understand the organizations growth goals and align employees with those goals whilst
maintaining a good company culture. 

The overall goals of any organization are also the goals of HR. The HR team contributes heavily to the
likelihood of reaching those goals by ensuring the best people are in place to do the work. With that in
mind, it is good business sense to have HR involved in early strategy discussions. By ensuring HR’s
involvement early on you reduce the possibility of people problems further down the line which could
slow progress and cost the business financially.

This paper also reflected on the fact that how employees can be a great asset to the company if properly
managed and engaged with the company. This requires the steps in the right direction by HRM and
SHRM working side by side to ensure that long term and short term engagement is ensured in specific
areas that needs implementation.
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References
 Dickson, D. 2010. Fostering Employee Engagement: Practical Tools and Best Practice
Techniques. Human Resource Development.
 Johansson, P. (2009). HRM in changing organizational contexts. In D. G. Collings & G. Wood
(Eds.), Human resource management: A critical approach (pp. 19–37). London: Routledge.
 Cheng, M.M. and Hackett, R.D., 2021. A critical review of algorithms in HRM: Definition,
theory, and practice. Human Resource Management Review.
 Walker, S. 2012. Employee Engagement and Communication Research: Measurement, Strategy,
and Action. Kogan Page Publishers.

 Carlson, D. S., & Perrewe, P. L. (1995). Institutionalization of organizational ethics through

transformational leadership. Journal of Business Ethics, 14(10), 829–838.
 Sullivan.J.2012. What’s Wrong with Employee Engagement? The Top 20 Potential Problems.
[Online].
 Resick, C. J., Hanges, P. J., Dickson, M. W., & Michelson, J. K. (2006). A cross-cultural
examination of the endorsement of ethical leadership. Journal of Business Ethics, 63(4), 345–359.
 Kokemuller, N., and Media, D.2020. Internal & External Factors Affecting Employee
Engagement.