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Status of employee engagement In India: A time for reflection

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International Journal of Education & Management © 2014 Indian Association of Health, Research and Welfare
Studies, 2014, 4(4), 316-324 ISSN-p-2231-5632-e-2321-3671
http://www.iahrw.com/index.php/home/journal_detail/21#list

Status of employee engagement in India: A time for reflection


Akancha Srivastava K. Ramachandran and A. Suresh
Indian Institute of Management Defence Institute of Psychological Research
Indore, Madhya Pradesh R & D Organization, Ministry of Defence
Timarpur, Delhi

Owing to its positive impact, employee engagement has been widely studied across different countries. Survey
reports and researches have shown that level of engagement are increasing universally but shifting across regions.
Within countries employee engagement is heavily influenced by the organizational culture and the demographics of
the work force. In an attempt to find out the status of employee engagement in India, this paper endeavors to find out
the type of work which is being carried in India in the field of engagement. The article presents reflective viewpoints
of some of the definitions of employee engagement, thereby exploring the empirical and conceptual work on
employee engagement. With the help of annual reports, of Nifty 50 we explored the Indian companies where
employee engagement is being practiced as business strategy. Subsequently, we studied the sectors with in which
employee engagement is being practiced.

Keywords: employee engagement, India, R & D sector, annual report

Organizations universally are in the need to successfully understand (for high and low-turn over organizations), safety incidents,
and use their employee's talents, knowledge, skills, and vigour. In shrinkage (theft) absenteeism, patient safety incidents quality
several countries, increasing workers' productivity levels is decisive (defects). For South Asian countries like Afghanistan, Bangladesh,
to business growth as well as for serving competitive advantage. India, Nepal, Pakistan, and Sri Lanka (Gallup, 2013) have viewed
Organizations around the globe will need to pick up their ability to employee engagement as robust predictor of vital job creation.
ensure that employees are in their precise roles and are cognitively, Studies have shown that employee engagement is strongly linked to
emotionally and behaviourally invested in their jobs. Subsequently a variety of business success dynamics such as employee
the need to build highly engaged workforce is imperatively required performance/ efficiency, productivity, safety, attendance and
for various organizations around the world. Various researches and retention, customer service and satisfaction, customer loyalty and
reports have shown that there are considerable variations in retention, profitability (Siddhanta & Roy, 2010). High levels of
engagement levels across different regions of the world, countries, engagement in domestic and global firms encourage retention of
companies, and even among workgroups. Robinson et al. (2007) talent, foster customer loyalty and improved organizational
conducted a survey covering eight different organizations and it was performance and stakeholder value (Kumar & Swetha, 2011).
found that engagement level varied according to demographic Researches also specify that the more engaged employees are, more
information like gender, age, ethnicity, disability, etc. Across likely to exceed the industry average in its revenue growth.
countries with innumerable cultural backgrounds and Employee engagement is found to be higher in double-digit growth
socioeconomic levels, workers who are psychologically involved in companies (Markos & Sridevi, 2010).
their workplaces are more likely to report job growth at their Employee engagement have been studied throughout the world as
organizations, rate their lives higher on average, and experience it has casted its impact globally. The study of employee engagement
more optimistic work life balance on a daily basis. at inclusive level is meaningful given the increasing number of
Researchers have shown that engagement levels impact profit and multi-national organisations and use of outsourcing. Different
productivity, increases customer loyalty, enhances creativity etc. At countries of the world have studied employee engagement keeping
the organisational level, engagement is claimed to increase in their mind their unique culture. In India employee engagement
productivity, profits, and customer satisfaction (Harter, Schmidt, & has been studied widely. For a country like India, employee
Hayes, 2002), while at the personal level it is claimed to make engagement could really serve as a tool for increasing competitive
employees happier, more satisfied, and more fulfilled, and want to advantage. The most important asset which organizations today
remain with the organisation (Harter, Schmidt, & Keyes, 2003). have is the “People” component. People are one factor that cannot be
Employees who are engaged in their work are entirely attached with duplicated or imitated by the competitors and is considered the most
their work roles. They are bursting with energy, dedicated to their valuable asset if managed and engaged properly (Anitha, 2014). To
work, and immersed in their work activities. Engaged workers are have engaged employees, three core strategic initiatives must be
more open to novel information, extra productive, and more willing promoted in India i. e. concentrating on the people aspect of
to go the extra mile. Moreover, engaged workers proactively modify performance management system, developing and hiring of good
their work environment in order to stay engaged (Bakker, 2011). middle managers, giving employees the opportunity to perform
Employee engagement is strongly linked to variety of performance best.
outcome like customer ratings, profitability, productivity, turnover
Employee engagement: Myriads of definition
Correspondence should be sent to Akancha Srivastava Engagement has been defined more completely as when employees
Indian Institute of Management, Indore, Madhya Pradesh feel positive emotions toward their work, find their work to be personally
International Journal of Education & Management Studies, 2014, 4(4), 316-324 317

meaningful, consider their workload to be manageable, and have employee engagement begins from the top as it is unthinkable to
hope about the future of their work. Employee engagement is a have engaged people in the organizations where there are no
condition of employee who feels involved, committed, passionate, engaged leadership. Managers should enhance two-way
and empowered and demonstrates those feelings in work behaviour. communication, ensure that employees have all the resources they
It is thus the level of commitment and involvement an employee has need to do their job, give appropriate training to increase their
towards their organization and its values (Sadique, 2014:p.377). knowledge and skill, establish reward mechanisms in which good
Sadique considered engagement in terms of feeling and behavioural job is rewarded through various financial and non-financial
component as he maintained that employees who feel involves are incentives, build a distinctive corporate culture that encourages hard
committed and empowered. This comes as more in behavioural work and keeps success stories alive, develop a strong performance
manifestation. According to Shanmugam and Krishnaveni (2012: p management system which holds managers and employees
.190), employee engagement is “the degree of one's allegiance of accountable for the behaviour they bring to the workplace, place
self-in-role towards one's company and the extra effort put in, to help focus on top-performing employees to reduce their turnover and
the firm achieve its goals”. Shanmugam and Krishnaveni considered maintain or increase business performance.” Kotni (2011) have
the role of self in engagement, which the individual takes in his/ her discussed various dynamics of employee engagement by discussing
work role thereby aligning it with the organization`s goals and some survey inputs and case studies in order to explain how the
objectives. Employee engagement is an individual's sense of companies can survive in the Global Crisis with limited workforce.
purpose, evident to others in the display of personal initiative, effort, Theoretical paper exploring the key drivers of employee
and persistence directed towards organizational goals (Soni, 2013). engagement have been worked upon and it was observed that top
According to Swaminathan and Aramvalarthan (2013), “The extent management's span of control and the freedom level of decision
to which employees commit to something or someone in their making for employees all have a deep effect on engagement level of
organization, how harsd they work and how long they stay as a result workers (Soni, 2013) . Satisfaction with HR practices and employee
of that commitment. Swaminathan and Aramvalarthan considered engagement have also been discussed with reference to Social
engagement as a form of commitment which id determined by Exchange Perspective (Jose & Mamphilly, 2012). Kataria, Garg and
putting effort in their work roles towards the organization. According Rastogi (2012) explored employee engagement and organizational
to Thakur, 2014 (P.31), employee engagement is a desirable state citizenship behaviour (OCB) literatures to investigate the
where employees are enthusiastic, dedicated and energized to interrelationships between employee engagement, OCB, and
achieve organizational goals. organizational effectiveness. Results specified that employee
The analysis of the above definition clarifies that employee engagement has the capacity to drive OCB. Engaged employees also
engagement is a positive state which is determined by commitment, have the greatest potential to add to organizational effectiveness
involvement, aligning their personal self with the organizations through their higher levels of OCB.
goals and objectives. These definitions are employee oriented which
Empirical work on Employee Engagement in Indian
shows the psychological bonding of the employee with its
organization. One pertinent fact which lacks in these definitions is Within the empirical domain, various explorations on employee
the role of organization as a whole in enhancing and maintaining engagement have been done. Most commonly the determinants/
employee engagement. predictors/ antecedents have been explored .These have been
studied in various sectors as well as firms. Swaminathan and
Conceptual work on Employee Engagement in Indian Aramvalarthan (2013) conducted a study to determine the level of
Numerous authors within the academic community have written on employee engagement among managerial staff of private hospitals,
the topic of employee engagement. Conceptual as well as empirical as well as to identify the key factor among the drivers of employee
work has been done. Some of the conceptual work which has been engagement. They observed that recognition is the key factor to
done is as follows. Theoretical work underlying the analytical employee engagement and the team work is most influential factor
assessment of employee engagement from its chronological sources to the key factor recognition. Sarangi and Srivastava performed a
have been discussed (Kumar & Swetha, 2011). Researchers like study on banking sectors. Impact of the organizational culture and
Shanmugam and Krishnaveni (2012) have conceptually defined communication on facilitating employee engagement is measured in
employee engagement and have proposed working definition of the Indian private banks. The sample consists of 247 executives.
employee engagement. Conceptual work which are based on This study has established connections between organizational
investigating the roles and significance of formal as well as informal culture, communication and employee engagement. The importance
research approach on employee engagement has been studied and strength of relationship between psychological empowerment
(Thakur, 2012) several initiative taken by specific industries and and its dimensions (meaning, competence, self-determination and
their status towards employee engagement have also been discussed impact) and employee engagement were evaluated. Results revealed
(Swathi, 2012). Research articles discovering implications for a significant positive association between psychological
theory, further research and practices by synthesizing modern empowerment and employee engagement. All the dimensions of
'employee engagement' strategies being practiced by the corporate psychological empowerment, other than self-determination are
with the review of findings from previous researches / surveys have predictors of employee engagement (Jose & Mamphilly, 2014).
been widely studied (Siddhanta & Roy, Ghosh, 2010). Markos and Singh and Sanjeev (2013) performed a study identify the factors of
Sridevi (2010: 94-95) have suggested ten points or strategies called employee engagement and also to examine the relationship between
'the ten tablets” to maintain employees engaged. They proposed that employee engagement and performance in the PSU. Five important
for managers, “work of employee engagement starts at day one factors have emerged as significant determinant of engagement.
through effective recruitment and orientation program, the work of They are as follows-encouragement and meaningful task,
318 SRIVASTAVA ET AL./ STATUS OF EMPLOYEE ENGAGEMENT IN INDIA

recognition and support, motivation and cooperation, feedback and corporate annual reports “as a vehicle to make credible
opportunity and career development and growth. communication to the corporate stakeholders and other external
Variations of employee engagement like levels of employee users”. Gray, Kouhy and Lavers (1995) have highlighted the use of
engagement, demographic variations, and relation with personality annual report in reporting the literature of corporate social reporting.
traits have also been studied. Research studies on employee Cowen et al. (1987) argued that annual reports gives resourceful
engagement in Indian manufacturing MSMEs revealed that an means of communicating company information and this makes
employee with more than 10 years of work experience in an greater impact on society.
organization irrespective of the age, gender and level of management To access the status of engagement in India, the “HR” section of
are more engaged than others (Ravikumar, 2013). Nifty 50 companies were analyzed using the annual reports of the
Blakrishnan and Masthan, (2013) conducted a study at Delhi listed 50 companies. Hence annual reports for the years 2013-14
International Airport during 2010-2011 for finding out the ways for (latest available) and 2012-13, 2011-2012 (previous years) of CNX
improving employee engagement. It was found that there is NIFTY 50 companies were studied. It was found that out of 50
significant reduction in the level of employee engagement. Owing to companies, 23 Companies are using and practising employee
the severity of the survey results, key driver was identified to boost engagement. (Appendix 1 contains the detailed status of employee
employee engagement and internal communication served as a key engagement in India.)These reports included the following key
determinant to employee engagement. Relationship between points about employee engagement under human resource
personality and employee engagement amongst frontline personnel management section of its annual report:
in the organized retail industry in India were also assessed. There ACC Ltd (2013) : The Human Resources Division have participated
exist a positive relationship between the extraversion and significantly in attaining the overall business objectives by
conscientiousness personality traits and employee engagement generating a universal vision, building capability amongst people
(Handa & Gulati, 2014). Impacts of employee engagement on and subsequently, involve and engage employees in improvement
various outcome variables like job satisfaction, productivity have programmes across the functions for achieving higher results. This
also been tested empirically. Studies were conducted to see the process of engagement and involvement through special projects
impact of employee engagement on job satisfaction in IT sectors has created learning opportunities for the employees. Employee
(Thakur, 2014). Gupta and Kumar (2013) explored the relationship Engagement Programmes Employee feedback through various
between perceptions of performance appraisal fairness and surveys were held and it was found that that the employees are
employee engagement in the Indian business context. Results experiencing a greater sense of engagement. This has been achieved
revealed a significant positive relationship between some through various on the- job engagement initiatives. Other initiatives
performance appraisal justice dimensions and engagement. to foster employee engagement like skill enhancement programme,
Through mediator/ moderator analysis, employee engagement has capability building, and creating future leadership program are also
also been established as a mediator variable. The mediating role of being conducted.
employee engagement between perceived organizational support Ambuja Cement (2013): Conducted employee engagement
(POS) and person-organization fit (P-O fit) as the antecedents and surveys to capture the pulse of the organisation, and it recorded
organizational commitment and job satisfaction as the consequences 98% participation. Feedback from the survey was translated to
were tested. Data from six Indian organizations and a sample of 246 action planning and implementation and now been institutio-
Indian managers were analyzed in this study. The findings help find a nalised within the Company. An official system namely Site
direct effect of P-O fit and POS, which affects employee engagement Specific Impact Assessment (SSIA) to engage with all
and leads to variance in organizational commitment and job stakeholders at all manufacturing sites and address their concerns
satisfaction (Biswas &Bhatnagar, 2013). has been accounted.
Axis Bank (2013-14): To promote the spirit of connectedness, the
Reference of Employee Engagement in Annual Report Bank hosts a number of employee engagement programmes through
An annual report is inclusive report on a company's events during the online and offline channels to join its thinly-spread employee
preceding year. Annual reports are envisioned to give shareholders population across extensively diffused geographical network.
and other concerned people data about the company's activities and Through these platforms, employees can carve their sole
fiscal performance. “Corporate annual can be viewed as a formal experiences, best practices and cast their opinion and feedback
public document produced by public companies largely as a response about the Bank's products and services. The Bank conducts
to the mandatory corporate reporting requirements” (Stanton Employee Engagement surveys to seek regular feedback from
&Stanton, 2009). “Published annual reports are used as a medium for employees on the policies and practices to reinforce its journey
communicating both quantitative and qualitative corporate towards creating a team of empowered employee. The strength of
information to shareholders, potential shareholders (investors) the workforce was 42,420 at the end of the year as compared to
and other users. Although publication of an annual report is a 37,901 last year. A young and engaged workforce with an average
statutory requirement, companies normally voluntarily disclose age of 29 years and the Bank's policy on being an equal opportunity
information in excess of the mandatory requirement” (Bhasin, employer continued to significantly contribute towards the Axis
2010: pg. 159). Bank brand.
Researchers have shown the importance of annual reports in using Bank of Baroda (2013-14): To enhance the “Employee
it as a tool. Ditlevsen (2013) considered annual reports as the most Engagement”, Bank undertook a variety of proposals like
significant investors relations tools and serves as important conducting satisfaction surveys and workshops for interaction
instrument for strategic stake holder communication. Stanton and between juniors and seniors. These workshops were held to improve
Stanton, 2009 opined that management should analyze and view the relationship between employee, HR and top management.
International Journal of Education & Management Studies, 2014, 4(4), 316-324 319

Bharti Airtel (2011-12): In the year 2012-2013, the company's best facilitator. Company affairs like restructuring and reorganizing
agenda will continue to focus on capability building, improving is communicated in a structured way. To promote interaction of
employee engagement, and enhancing our employee value juniors with seniors techniques like JAM are promoted. Fast Track
proposition. programs to identify high performers are also employed to promote
Dr. Reddy's Laboratories Ltd (2013-14): At Dr. Reddy's, employee engagement.
engagement is a healthy two-way communication system. The Jaiprakash Associates Ltd (2012-13): The Company endeavours to
company empowers their employees through communication generate an inspiring work environment through its HR practices.
platforms across regions and time zones. Some of these policies With the aim of attracting and retaining the best people, regardless of
include “quarterly employee communication sessions, open houses their background, beliefs or social culture. The Company places
at plants, 360º feedback and focused interviews”. considerable emphasis on health and safety throughout its
HDFC Bank (2013-14): The bank conducts activities that help operations and exhibits commitment to ensure that high standards
employee to show their talents or to pursue their interest other than are maintained in compliance with all applicable laws and
work. Inclusive sports activity like “Josh Unlimited” were held in 15 regulations. The Company's Safety Policy comprises a statement of
different cities. According to the bank the other important the Organization's objectives regarding Safety of Man and
engagement included the voice hunt contest, Stepathalon, a race Equipment in operation at work sites. The Management's
competition which was held to encourage corporate health, fitness established a risk-free and “Zero accident” work environment .The
and productivity by boosting daily activities. Company is well-known for developing talent in its employees. The
Hero Moto Corp Ltd (2013-14): Employee Engagement survey was Company efforts to attract, support, retain and motivate the best
conducted in the organisation and main concern areas were identified people in the field, and its training programs are designed to
in three different domains: Corporate Level, Functional Level and augment the capacity of individuals, offer openings to increase skills
Team Level. An ordered action plan has been started at different and enhance knowledge in order to maintain a competitive
levels. Engagement and development initiatives like Soul mates (a advantage. The Company provides various opportunities to
unique programme involving couples), Udaan-kids development employees of all levels to upgrade their skills.
programme, safety awareness for all, career counselling for Kotak Mahindra Bank Limited (2013-14): With continued emphasis
employee wards, in-house product training for all lateral hires, trust on employee engagement, the Bank along with most of its
for welfare schemes for the employees ,mini summer camps, Diwali subsidiaries undertook an organization wide engagement study
functions, Hero Management Quiz and career counselling were which had close to 90% participation and feedback received on
introduced to boost the level of engagement in the organization. various parameters have formed the basis of action plans across
Hindustan Unilever Ltd (2013-14): To measure the level of various work groups. The Bank's HR processes are aligned to its
employee engagement the company conducts Global People Survey Employer Value Proposition 'FLAME' and business outcomes.
(GPS). The Company's Human Resource schedule for the year was F - Focus on results
targeted on strengthening four key areas: building a robust and L - Opportunity to work with senior leadership of the organisation
diverse talent pipeline, enhancing individual and organisational
A - Active involvement/inclusiveness
capabilities for future readiness, driving greater employee
engagement and strengthening employee relations further through M - Maximum challenge and
progressive people practices. The Survey aims to give voice to E - Entrepreneurial creativity
employees; it also provides regular, meaningful and actionable The company gives emphasis on Stakeholder engagement. Talent
feedback to the leaders in the organisation. It has questions spread development and acquisition is prime focus of the Bank's people
across several dimensions in the areas, such as Strategic Leadership, agenda. The Bank lays high emphasis on levels of employee
Immediate Boss Effectiveness and Engagement. Feedback from this engagement and strives to enhance these processes. Gender
survey forms the basis of holistic engagement plans. diversity is one of the focus areas for the Bank. In FY 2013-14, the
I T C Ltd (2014): ITC's talent engagement approach is centred on Bank has integrated its gender diversity agenda with the KPO
attracting and nurturing quality talent, ITC's talent brand, “Building programme by launching the first 'all-women batch' of the course.
winning businesses, Building business leader, Creating value for The Bank takes great pride in nurturing and grooming some of finest
India reflects its commitment to build up leaders to fuel its engines of talent in the industry. Leadership development at KMBL focuses on
growth, enhance organisational capability to compete and win in the continually providing a sustainable and stable environment for its
market place and create enduring value. The company lays emphasis talent to learn and grow. The Bank's employee retention rate is
on Stakeholder Engagement. The Board approved Policy on amongst the best in the industry and is well respected in the country
Stakeholder Engagement offers the approach for identifying and for the quality and stability of its talent. KMBL has designed various
engaging with stakeholders that include shareholders, customers, levels of leadership platforms like Kotak Leadership Team (KLT),
employees, farmers, suppliers, communities, civil society and the Kotak Initiatives Team (KIT) and Regional Forums (RF). These
government.ITC believes that an effective stakeholder engagement leadership forums enable senior leaders to gain a holistic overview
process is necessary for achieving its sustainability goal of inclusive of people practices and operational processes through cross-
growth. functional reach of leadership within the organisation's human
Infosys Ltd (2013-14): The Company strongly believes in resource base. KMB extends support to other NGOs by
motivating, developing and engaging employees. Many platforms contributions, employee engagement and volunteering initiatives.
of communication are provided so that employee can share their The Bank sponsored employees to participate in Habitat for
viewpoint on all spheres like self development, career and can also Humanity's 'Volunteer Build' at Tadwadi Village (near Karjat).
get feedback. To engage employees communication serves as the Employees worked with prospective homeowners, assisting them
320 SRIVASTAVA ET AL./ STATUS OF EMPLOYEE ENGAGEMENT IN INDIA

with bricklaying and painting work. (For more details, pl refer employee engagement, as per emerging scenarios and prevalent best
'Employee well-being' section of the 'Business Responsibility practices. In NTPC, there is no unfairness for different caste, creed,
Report', page 113-114) religion, gender or place of origin etc., in engagement of manpower
Larsen and Toubro Ltd (2013-14).: Employee engagement, feedback or remunerations.
and workshops are held with the purpose of creating an innovative, Oil & Natural Gas Corporation Ltd. (2013-14): At ONGC standard
involved and committed work force. “Belbin” Team building independent audits, both internal &external, gets carried out to
workshops across different businesses were prepared to make a gauge level of employee engagement and satisfaction like the one
culture of amity and strengthen employee attachment. The company recently got done by M/s Booz & Co. Wherever desired and
sustained to engage major business development personnel and warranted, expert advice from external agencies/consultancies is
international business heads in some of the geographies. The solicited to ramp up practices/policies to best of industry standards.
business endeavours for incessant enhancement for the protection Ranbaxy Laboratories Ltd (2013-14): The Company considers that
and development of health, safety and environmental assets of its the employee feedback is an imperative symbol of Ranbaxy's
employees and stakeholders. India's exceptionally sundry Employee Value Proposition and therefore it seeks employee inputs
workforce, large-scale talent re-engineering initiatives, as well as through a Global Engagement Survey. Based on the results received
employee engagement activities is making sure a future-ready from this survey, the Company conducts various initiatives across
workforce, and as a result the industry is growing up. The the globe to continually help in enhancing employee engagement
Technology Solutions & Innovation Centre (TSIC) has fostered and build Ranbaxy as an employer of choice
within the organization the custom and tradition of innovation and Tata Consultancy Services Ltd (2013-14): To coherent employees
healthy competition through the Tech Panorama and Tech thoughts and feelings and to have reciprocity of ideas TCS
Expression events which has fostered companywide employee continuously empower their employees. Standard HR connect
participation aiding in employee engagement. Employee sessions aid the Company recognize the pulse on the ground and
engagement survey, administration of various psychometric tools, take essential strides to keep the workforce engaged and motivated.
post-performance management system survey, custom designed Employees also obtain constant feedback on technical, behavioural,
'people manager' programs and feedback are a usual business at L&T. and other professional and personal areas during mentoring
The functioning of social media within the enterprise is aimed at sessions. TCS has an employee engagement platform namely,
increasing communication, collaboration and employee engagement. Maitree where like-minded people jointly engage in a surplus of
Mahindra & Mahindra Ltd (2013-14): At Mahindra with the activities as part of various interest groups such as music club,
amalgamation of technology and team work, dynamic business environment,reading club etc. These non-work related activities
models are created to enhance engagement. A regular analysis of assist in recovering employee bonding within the organisation,
employee engagement is done via surveys to measure the level of strengthening personalities through volunteering and managing
motivation of employees. stress at work. Employees are also facilitated to engross their
Maruti Suzuki (2013-14): Company is devoted in strengthening families in these activities. Internal audits are conducted to review of
positive employee relations through continuous communication, internal controls and risks in its operations such as software delivery,
education, engagement and welfare initiatives. Numbers of accounting and finance, procurement, employee engagement,
innovative initiatives have been set up to reinforce people to connect travel, insurance, IT processes, including most of the subsidiaries
and engage them. One of the main initiatives in this direction has and foreign branches.
been umbrella mentoring to hand hold, guide and develop the young Tata Motors Ltd. (2013-14): The company`s Human Resource, have
workforce. Associates are mentored and guided by supervisors who applied diverse initiatives in order to build organizational capability
are trained on coaching, mentoring, relationship. Permanent internal that will enable the Company to sustain competitiveness in the
communication, policy sessions, helpdesk and grievance handling global market place. The focus is to attract talent, retain the better
forums helped the company to strengthen and connect with the and advance the best.
employees and reach out to the young team members at the shop Tata Power Co. Ltd. (2013-14): With the help of Aon Hewitt survey
floor. Employees are also given the newest business and in 2013 level of employee engagement was assessed. On the whole
performance information on a usual basis through structured employee engagement of the Company was 67% as against the
communication meetings. The Company conducted an annual industry average of 66%. Communication and action planning
employee engagement survey which gives meaningful and workshops were held to communicate the survey findings and to
actionable feedback to the leaders in the organisation. The feedback make possible formulation of action plans at several divisions to
of employees is read across and various aspects in the areas such as address areas of concern. Counselling sessions were arranged with
job satisfaction, leadership, and work culture are addressed and relevant departments and managers to ensure sustained engagement
looked upon. Feedback from this survey serves the basis of holistic and satisfaction levels in FY14.Other initiatives like cadre
engagement plans, which are reviewed regularly. The engagement recruitment, capability development etc are also looked at.
scores saw an increase over last year which has been possible due to Indusind Bank (2013-14): A vigorous Online Performance
various engagement initiatives and HR interventions across the Management System based on “SMART Goal-setting” continues to
organisation. These initiatives helped the company in controlling run successfully across the Bank. The Performance Management
attrition. processes (Goal-setting, Mid-year Review, Annual Performance
NTPC Ltd (2013-14): NTPC has healthy recruitment/manpower Review) assist the bank to outline employee performance
engagement system. The employees working in NTPC avails objectives, engage with employees, review performance, recognize
complete freedom to join and leave the organisation as per its own and reward based on tangible performance, identify and nurture
volition. The company continuously upgrades its practices on leaders to spearhead business growth.
International Journal of Education & Management Studies, 2014, 4(4), 316-324 321

Indian sectors in which employee engagement was studied their companies desperately need. These engaged workers build
new products and services, generate new ideas, create new
In India employee engagement has been studied in variety of sectors
customers, and ultimately help spur the economy generating more
like IT (Swathi, 2012; Desai, Majumdar & Prabhu, 2012; Pandey &
good jobs” (State of the Global workplace, Gallup . Inc, 2013).The
David, 2013), manufacturing (Desai, Majumdar, & Prabhu, 2012;
purpose of research and development (R&D) activities is to
Ravikumar, 2013), banking (Mani, 2011; Sarangi & Srivastava,
contribute novel comprehension improved devices, products,
2012; Gummadi & Devi 2013; Mishra, Kapse, & Bavad 2013;
process systems, and concepts. Considering the nature of the R&D
Bhatla, 2011), pharma company (Pandey & David, 2013), hospitals
function, the products should not only be new, but technologically
(Swaminathan & Aramvalarthan, 2013), airports (Balakrishnan,
advance simple and easy to use. The nature of task in R & D
Masthan & Chandra, 2013), automobile industry (Goel, Gupt, &
organization is non repetitive (Duncun, 1972), highly technical,
Rastogi, 2013), Global media organization (Sharma & Raina, 2013).
highly innovative groups (Narang, 2002). No doubt that the R&D
Indian trend of engagement reveals that (37%) of employees are
operation is clearly a learning process to transmute the unknown to
engaged. the Indian employees exhibits the highest levels of
the known (Silaen & Williams, 2007). For this knowledge has to be
engagement worldwide. Engaged employees are those with the most
processed into practical feasible projects. In R & D organisation the
tangible priorities (Sales at 45%) or closest brand alignment
scientists are the most important asset (Twiss, 1992; Jain &Triandis,
(Marketing at 43%). In India HR/Training employees are the least
1990). They are the knowledge workers who are also known as
likely to be engaged (27%), in contrast to other regions where they
problem solvers (Reich, 1991). For successful implementation of
are among the most likely. Engineering ranks second to the last at
this knowledge the scientist should not only be theoretically and
29% which represent that highly analytic or expert employee being
practically knowledgeable but should be innovative (Silean &
least engaged in global patter (Thakur, 2012).
Williams, 2007), vigorous, dedicated and absorbed in their work as
Evidence from the literature shows that in India mostly every well as organization or in other words engaged. These are attained
sector/industry have been linked and studied by employee only when employees add value through their ideas, analysis,
engagement. Though there is widespread research on the subject of verification, reasoning, judgment and synthesis. In order to
employee engagement in the service, production and manufacturing understand the dynamics of engagement in R&D organization the
sectors there is a precise lacuna on this issue among professionals current study proposes to identify the predictors of engagement.
employed in the scientific field. According to The Joint Committee Keeping this framework, it was felt that an understanding of the
of Industry and Government 2013, “India aspires to emerge as one of interplay between engagement and its predictors is a vital factor for
the top five knowledge powers in the world in the area of Science, organizational effectiveness. However, to date there is dearth of
Technology and Innovation. Such aspiration demands bench research that has explored engagement within the R & D.
marking against global best practices in shaping the Indian research
and development sector”. Human resources in science and Conclusion
technology are necessary for advancing science and innovation and
This paper highlights the direction of emerging research in the field
generating productivity growth (The Joint Committee of Industry
and Government, 2013). of employee engagement in Indian context. The review paper covers
some of the direction of employee engagement in India. Based on
One sector which did not get much attention is Research and
the review following observations have been identified.
Development (R&D) sector/organization. Research and develop-
ment sector/ organization involves investigative activities that an Firstly in India it could be observed that only the academic
organization chooses to conduct with the aim of making a discovery fraternity has taken the sole proprietorship of the term as mostly the
that can either lead to the development of novel products or academicians have worked in this area. The academic world has
procedures, or to advancement of existing products or procedures. mostly described engagement as (sense of purpose, level of
This is an immensely important sector for the progress of the country. commitment, desirable state) etc. However these definitions do not
In this speedy environment, the organizations are confronted with fully elucidate the role of organization in promoting employee
challenge of bringing forth a stable stream of new products and engagement. To comprehend the dynamics of employee
technologies. Thus the organizations have to learn to extend engagement, there is a great role of consultant and practitioners who
themselves in order to create innovative products and technologies can provide knowledge based practical approach in promoting
and identify new market places and challenge before the employee engagement. Thus, concept could be much more utilized
organizations is how they can create their own successful future. if the practitioners' world also joins their hands with the practicing
(Ahuja, 2011) R&D is a tremendously human capital-intensive effort academicians. In toto there should be a blend of both, theory as well
since the primary output is knowledge (Majumdar, 2013). R&D not as practical implication of employee engagement.
only creates new knowledge but also contributes to the firm's Another imperative observation lies in the cultural history of
absorptive capacity (Cohen & Levinthal, 1990) .Employees who are India. India is considered as a very resilient country; this could be
highly involved in their work process such as conceiving, designing attributed to the fact that Indian has the native past to rebuild their
and implementing workplace and process changes are more engaged nation. Work in the organization, has drastically changed. With the
(Lockwood, 2007). coming up of globalization, the environmental conditions have
changed. It has led to change in structure, technology as well as
Engagement in R&D Sector people. The influences of cultural factors in this complex system
“Engaged employees are those who are involved in, enthusiastic level integrated markets, international trade, international
about, and committed to their work and who contribute to their investment, multinational corporations, technology convergence
organization in a positive manner. Engaged employees are the ones have major significance (Cojocaru, 2011). Globalization lifted the
who are most likely to drive innovation, growth, and revenue that mix of cultures, languages, viewpoints, as well as the number of
322 SRIVASTAVA ET AL./ STATUS OF EMPLOYEE ENGAGEMENT IN INDIA

expatriates (Friedman, 2007). This change has casted its impact on interdisciplinary. To add knowledge into the existing world, it is
organizational culture To pursue this type of research only necessary to study various dimensions by linking it with other
technological knowledge is not required, strengthening an subjects. So concepts from HR like employee engagement can be
individual`s inner psychological state is required. Consequently utilized in other fields, like sports psychology where researches
there is a need to study the variables like Psychological Capital and could be planned by studying the relationship of engagement with
it`s relation with employee engagement within the Indian context. concept like mental toughness, in order to fully utilize the
Psychological capital can be defined as An individual's positive potentiality of the concepts.
psychological state of development that is characterized by: (1)
having confidence (self-efficacy) to take on and put in the necessary Acknowledgments
effort to succeed at challenging tasks; (2) making a positive The contribution of Ms. Sapana Singh, (Academic Associate, Indian
attribution (optimism) about succeeding now and in the future; (3) Institute of Management, Indore,) in sourcing and locating the
persevering toward goals, and when necessary, redirecting paths to references of employee engagement in annual reports is highly
goals (hope) in order to succeed; and (4) when beset by problems and recognized
adversity, sustaining and bouncing back and even beyond
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Appendix: 1

Table No.1: Status of Employee Engagement in Annual Report of CNX NIFTY 50 companies
Sr. List of companies Year Employee / Work Engagement Reference in annual report or Not Section / page No.
01 ACC Ltd. 2013 HR Section 31
02 Ambuja Cements Ltd. 2013 HR, Section E: Principle-wise performance (Principle 4) 21, 22, 61
03 Asian Paints Ltd. 2013-14 No mention
04 Axis Bank Ltd. 2013-14 HR 29
05 Bajaj Auto Ltd. 2013-14 No mention
06 Bank of Baroda 2013-14 HR, employee engagement& rewards 12, 96
07 Bharat Heavy Electricals Ltd. 2013-14 No mention
08 Bharat Petroleum Corporation Ltd. 2013-14 No mention
09 Bharti Airtel Ltd. 2011-12 HR 54
10 Cairn India Ltd. 2013-14 No mention
11 Cipla Ltd. 2013-14 No mention
12 Coal India Ltd. 2013-14 No mention
13 DLF Ltd. 2011-12 No mention
14 Dr. Reddy's Laboratories Ltd. 2013-14 HR (promoting employee weel-being) 40
15 GAIL (India) Ltd. 2012-13 No mention
16 Grasim Industries Ltd. 2013-14 No mention
17 HCL Technologies Ltd. 2014 No mention
18 HDFC Bank Ltd. 2013-14 HR 26
324 SRIVASTAVA ET AL./ STATUS OF EMPLOYEE ENGAGEMENT IN INDIA

19 Hero MotoCorp Ltd. 2013-14 Human Dynamism 52, 53


20 Hindalco Industries Ltd. 2012-13 No mention
21 Hindustan Unilever Ltd. 2013-14 People, HR 13, 40
22 Housing Development Finance 2013-14 No mention
Corporation Ltd.
23 I T C Ltd. 2014 ITC Infotech India Limited 60
24 ICICI Bank Ltd. 2013-14 No mention
25 Infosys Ltd. 2013-14 Products & solutions, Risk mgmt., employee well-being 10, 41, 110-111
26 Infrastructure Development 2013- 14 No mention
Finance Co. Ltd.
27 Jaiprakash Associates Ltd. 2012-13 Employee relations 55
28 Jindal Steel & Power Ltd. 2013-14 No mention
29 Kotak Mahindra Bank Ltd. 2013-14 Employees, HR, employee well-being, stakeholder 82, 108, 113, 115,
engagement, CSR initiatives, annexures (principle 3) 119, 125,
30 Larsen & Toubro Ltd. 2013-14 Significant initiatives, business environment, IT 101, 121, 125, 132, 150
31 Lupin Ltd. 2013 No mention
32 Mahindra & Mahindra Ltd. 2013-14 People 30,
33 Maruti Suzuki India Ltd. 2013-14 HRD, HR 33, 61
34 NTPC Ltd. 2013-14 Labour 93
35 Oil & Natural Gas Corporation Ltd. 2013-14 Principle3.10 156
36 Power Grid Corporation of India Ltd. 2013-14 No mention
37 Punjab National Bank 2014 No mention
38 Ranbaxy Laboratories Ltd. 2013-14 HR 42
39 Reliance Industries Ltd. 2013-14 No mention
40 Reliance Infrastructure Ltd. 2013-14 No mention
41 Sesa Goa Ltd. 2013 No mention
42 NMDC 2013-14 No mention
43 State Bank of India 2013-14 No mention
44 Sun Pharmaceutical Industries Ltd. 2013-14 No mention
45 Tata Consultancy Services Ltd. 2013-14 HR Strategy, cash flow, employee skill up-gradation 35, 68, 92
46 Tata Motors Ltd. 2013-14 HR 99
47 Tata Power Co. Ltd. 2013-14 HR 54
48 Tata Steel Ltd. 2011-12 No mention
49 UltraTech Cement Ltd. 2012-13 No mention
50 Indusind Bank 2013-14 HR 49

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