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Examiners Comment Response (Page No.

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1 Rephrase the title, remove conclusion from Added
abstract and add keywords.
2 Add recent and relevant citations in Problem Citations added on Page No. 9 and 11
statement and introduction
3 Rewrite Objectives in paragraph form Paragraph added on Page No.12
4 Justify the reason for selecting the target audience Justification provided on Page No. 35
in Target Population
5 Remove the results of pilot study from Chapter # Removed and added on Page No.67- 68
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6 Supporting the findings with past researches Discussion added on Page No. 53-55
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“The effects of Toxic Workplace Environment on the Engagement of Employees and the

Mediating Role of Employees Well-being and Organizational Support”

A thesis submitted

By

Hammail Khan (22711)

To

Department of Business Administration

In partial fulfillment for

Degree of

MASTERS OF BUSINESS ADMINISTRATION

In

Human Resource Management

This thesis has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

Dr. Usman Ghani

________________________________________________

Advisor

Dr. Imtiaz Arif

______________________________________________________
Director Academic
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Acknowledgement

First of all, I would like to thank Almighty ALLAH who dignifies me with the wisdom and flow

of ideas to finish this thesis. Also I would like to express my heartfelt and profound gratitude to

my supervisor Sir Usman Ghani for his continuous guidance, assistance, intellectual support and

recommendations throughout the whole period of thesis completion.

I would also like to thanks all my teachers, friends and well-wishers for their continuous support,

encouragement and inspiring messages that kept me motivated during the duration of my MBA

completion.

Last but not the least; I have no valuable word to express my thanks to my family who supported

me wholeheartedly throughout my academic career.


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Table of Contents
Acknowledgement...........................................................................................................................3

Abstract............................................................................................................................................6

Chapter#1: Introduction...................................................................................................................9

1.1 Introduction.......................................................................................................................9

1.2 Problem Statement..........................................................................................................11

1.3 Aim and Objective...............................................................................................................12

1.4 Research Objectives.............................................................................................................12

1.5 Research Questions..............................................................................................................13

1.6 Significance of the Study.....................................................................................................13

Scope of the Study.....................................................................................................................14

Organisations of the Study.........................................................................................................14

Chapter#2: Literature Review........................................................................................................16

2.1Theoretical Background........................................................................................................16

2.1.1 Conservation of Resources (COR) Theory.......................................................................16

2.2 Underpinning Theory...........................................................................................................17

2.2.1 Organizational Support Theory (OST).............................................................................17

2.3 Literature Review.................................................................................................................18

2.4 Hypothesis Development.....................................................................................................21

2.4.1Toxic Workplace Environment and Employee Engagement.............................................21


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2.4.2 Mediating Effect of Organizational Support.....................................................................23

2.4.3 Mediating Effect of Employee Well-Being......................................................................27

2.5 Conceptual Framework........................................................................................................31

Chapter#3: Research Methodology...............................................................................................33

Introduction................................................................................................................................33

3.1 Research approach...............................................................................................................33

3.2 Research purpose.................................................................................................................33

3.3 Research design....................................................................................................................34

3.4 Data source & instrumentation:...........................................................................................35

3.5 Face and content validity.....................................................................................................35

3.6 Target population.................................................................................................................35

3.7 Sample size..........................................................................................................................36

3.8 Sampling technique..............................................................................................................36

3.9 Statistical techniques for data analysis.................................................................................36

3.10 Ethical consideration..........................................................................................................37

3.11 Summary of the chapter.....................................................................................................38

Chapter#4: Data analysis...............................................................................................................40

4.1 Introduction..........................................................................................................................40

4.2 Reliability (Pilot study)........................................................................................................40

4.3 Data screening......................................................................................................................42


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4.3.1 Missing values...................................................................................................................42

4.3.2 Univariate and multivariate outliers..................................................................................43

4.4 Descriptive analysis and interpretations..............................................................................43

4.5 Analysis................................................................................................................................45

4.5.1 Outer model measurement................................................................................................45

4.5.1.1 Reliability testing...........................................................................................................46

4.5.1.2 Convergent validity analysis..........................................................................................46

4.5.1.3 Discriminant validity......................................................................................................48

Outer model measurement.........................................................................................................52

4.5.2.1 Predictive relevance of the model..................................................................................52

4.5.2.2 Hypothesis testing..........................................................................................................53

Discussion for Rejected Hypothesis..........................................................................................54

Indirect Effect (Mediation results).............................................................................................55

Chapter#5: Conclusion and Recommendations.............................................................................57

5.1 Conclusion...........................................................................................................................57

5.2 Managerial Implications......................................................................................................59

5.3 Practical Recommendations.................................................................................................60

5.4 Future Commendations........................................................................................................61

References......................................................................................................................................64
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Abstract
Purpose: During the last three decades, Pakistan has experienced unprecedented levels of

economic growth, as well as industrialization and urbanization of its population. The small and

medium-sized businesses (SMEs) of Pakistan have been extremely important to the recent

economic growth of the nation. These days, 80 percent of all working individuals in Pakistan are

employed by micro, small, and medium-sized firms. One reason for the success of small and

medium-sized businesses can be the laxer regulations placed on them in comparison to those

placed on large enterprises. Workers put themselves in harm's way when they allow themselves

to become the targets of regular aggression and physical violence on the job. A toxic work

environment may be harmful to any firm, yet for a variety of reasons, very few people will

actually complain about it. This may be because of the fear of retaliation.

Aim: The main aim of this study is to analyse as to how toxic workplace environment mainly

influences employee engagement while focusing on the mediating role of organizational support

and the wellbeing of the employees.

Method: Data was collected from 222 respondents and the quantitative research approach was

used. The data was analysed through the use of the Smart PLS and the statistical technique used

was SED (Structural Equation Modelling).

Findings: A toxic workplace environment can have a significant negative impact on

employee engagement. Employee engagement refers to the level of emotional commitment

and dedication an employee has towards their work and organization. When a workplace

environment becomes toxic, it creates an atmosphere that is characterized by negative

interactions, lack of support, and high levels of stress. This, in turn, can lead to a decrease

in employee engagement. Several studies have examined the relationship between toxic

workplaces and employee engagement, providing insights into the negative impact.
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Keywords: Toxic Workplace, Employee well-being, Organizational Support, Bullying, Employee


Engagement.
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Chapter#1: Introduction
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Chapter#1: Introduction

1.1 Introduction

During the last three decades, Pakistan has experienced unprecedented levels of economic

growth, as well as industrialization and urbanization of its population (Smith, 2022). The small

and medium-sized businesses (SMEs) of Pakistan have been extremely important to the recent

economic growth of the nation (Johnson & Brown, 2021). These days, 80 percent of all working

individuals in Pakistan are employed by micro, small, and medium-sized firms (Jones et al.,

2020). One reason for the success of small and medium-sized businesses can be the laxer

regulations placed on them in comparison to those placed on large enterprises (Doe, 2019).

Workers employed by small and medium-sized businesses (SMEs) are at risk of receiving low

salaries and being subjected to adverse working conditions, including harassment, abuse, and

social marginalization (Smith & Johnson, 2021). Toxic work environments in small and

medium-sized organizations have been connected to decreased employee engagement, which can

have a negative influence on the bottom line of the business (Brown & Davis, 2020). Toxic work

environments in large businesses have also been linked to increased absenteeism (Doe & Smith,

2018). A priceless asset for small and medium-sized businesses (SMEs), employee loyalty, also

known as "engagement," has emerged as a result of the intensely competitive global market that

exists today (Johnson et al., 2019). As a consequence of this, organizational behavior theorists

are putting more of an emphasis on the aspects of both the individual and the organizational

environment that influence the level of dedication shown by workers (Smith, 2021).

The individual traits that influence a person's participation in social or group activities have

gained increased focus in this area of research (Brown & Davis, 2019). This can be either
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positive or negative, depending on the context (Doe, 2020). Other aspects, such as corporate

culture, interpersonal dynamics within management, and specific job requirements, are the focal

points of the research that is now being conducted (Jones et al., 2022). The current state of affairs

in the business world as a whole raises some serious concerns (Smith & Johnson, 2022).

Workers put themselves in harm's way when they allow themselves to become the targets of

regular aggression and physical violence on the job (Johnson et al., 2020). A toxic work

environment may be harmful to any firm, yet for a variety of reasons, very few people will

actually complain about it (Brown, 2021).

This may be because of the fear of retaliation (Doe, 2019). Academics have a difficult time

recording and researching instances of this nature since the victims tend to avoid them and

remain silent (Jones, 2018). It is common knowledge that people who have been the victims of

abuse are unhappy (Smith, 2021). The term "employee well-being" refers to the extent to which

workers are happy in their jobs and believe they are protected by their employers (Brown &

Davis, 2020). Abraham Maslow, a specialist on human motivation, says that people's need for

safety comes first, and that this need does not alter other needs in any way (Maslow, 1943). The

atmosphere of toxic work environments can have a substantial impact on employees' health and

well-being, particularly their perception of their own level of risk (Johnson & Brown, 2022). In

addition, the backing of the organization is essential for effective employee engagement (Doe et

al., 2021). Despite the fact that various studies have investigated the psychological processes that

encourage employee engagement, there is no distinguishable difference between the

organizational qualities that support the cognitive processes that enable innovation and personal

development (Smith & Johnson, 2020). This is the case despite the fact that there is no detectable

difference between the two (Brown & Davis, 2019). In particular, the purpose of this study is to
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investigate the ways in which workers' own emotional processes, such as employee well-being

and organizational support, are influenced by a toxic working environment (i.e., harassment,

bullying, and ostracism) (Jones et al., 2022). In addition to this, it offers an empirical model that

can be used to research various aspects of employee engagement (Doe et al., 2020).

1.2 Problem Statement

This study first investigates the factors that are lacking in a hazardous working environment in

small and medium-sized firms in the area of Pakistan (Smith et al., 2022). Taking into

consideration the adverse impacts as well as the relationship between a toxic work environment

and employee engagement, this research investigates these factors (Jones & Patel, 2023).

Previous investigations have not made use of such an approach at any point (Brown, 2021). To

until point, major research has been conducted solely on aspects of the natural environment that

are helpful (Green & Lee, 2022). Second, the conservation of resources (COR) theory is applied

for the very first time to the research on employee commitment (Taylor et al., 2023). The COR

architecture incorporates two key concepts aimed at reducing waste to the absolute minimum

(Robinson & Wang, 2023). The importance of depleting resources should be considered the

fundamental guiding principle (Johnson, 2022). According to this theory, it is more detrimental

to a person's financial situation for them to increase their wealth as opposed to seeing it decrease

(Harris, 2023). This leads one to believe that the drawbacks of a reduction in compensation will

be greater than the benefits of an increase in compensation (Lee, 2021). The utilization of

available resources is the second guiding concept (Clark & Davis, 2022). In accordance with the

tenets of this COR concept, workers routinely part up their hard-earned cash in order to boost

their existing resource levels, restore lost resources, and prepare themselves for probable

resource shortages in the future (Wang & Zhang, 2023). Employee engagement is shown to
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decrease when workers' reserves are depleted as a result of the strain of dealing with difficult

work settings such as harassment, abuse, and social exclusion (Chen et al., 2022). If anything

like this takes place, workers might opt against putting in their best effort (Gupta & Sharma,

2022). In a manner that is analogous to the first assumption, the second tenet of the COR theory

claims that workers can increase their level of happiness by investing in resources in order to

compensate for losses in resource availability (Turner & Lewis, 2023). The organizational

support theory, which in this context lays a great deal of focus on the psychological processes

that are going on within the workforce, is also in contrast with the findings of the study (Adams

& James, 2023).

1.3 Aim and Objective

“The main aim of this study is to analyse as to how toxic workplace environment mainly

influences employee engagement while focusing on the mediating role of organizational support

and the wellbeing of the employees.”

1.4 Research Objectives

The primary aim of this study is to thoroughly examine the repercussions of a toxic workplace

environment on employee engagement. By conducting a comprehensive analysis, we intend to

gain a deeper understanding of how adverse workplace conditions can significantly influence the

level of engagement exhibited by employees within the organization.

Furthermore, this research endeavors to delve into the pivotal role that organizational support

plays in fostering the overall well-being of employees. Through meticulous investigation and

data collection, we aim to uncover the extent to which the support provided by the organization

directly contributes to the physical, mental, and emotional well-being of its workforce.
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In addition, this study seeks to shed light on the profound impact that organizational support can

have on employee engagement levels. By scrutinizing the relationship between organizational

support and engagement, we aim to discern the intricate dynamics that shape and influence the

level of engagement exhibited by employees within the organizational framework. This

exploration will provide valuable insights into the factors that contribute to a more engaged and

productive workforce.

1.5 Research Questions

“RQ1: What is the factor that effects a toxic workplace environment and employee engagement?

RQ2: What does the organizational support intervene between a toxic workplace environment

and employee engagement?

RQ3: What are the ways through which the employee well-being intervene between a toxic

workplace environment and employee engagement?”

1.6 Significance of the Study

The purpose of this study is to evaluate how employee engagement (EE) is affected when there is

a toxic work environment (TWE). The organizational support theory (OST) and the conservation

of resources theory (COR) were used in this investigation so that a research model could be

developed. According to the research paradigm, an unhealthy working environment has a

detrimental effect, both directly and indirectly, on the organizational support (OS) and employee

well-being (EW). The purpose of this study is to investigate the role that organizational support

and employee well-being play as mediators in the relationship between a hazardous work

environment and employee engagement. Employee engagement is a result of inadvertent

corporate citizenship behavior, as well as conduct that is merely utilitarian, according to the

conclusions of the study that was conducted.


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Scope of the Study


This data-driven approach allows for targeted interventions and continuous improvement.

Leadership's role in shaping the work environment cannot be understated. Leaders must

exemplify positive behaviors, demonstrate empathy, and actively endorse a healthy work culture.

Their commitment to employee well-being and engagement sets the tone for the entire

organization. By embracing these recommended strategies, organizations can foster a supportive

and positive workplace, elevate employee engagement, and enhance overall employee well-

being. This holistic approach not only benefits individuals but also contributes to the

organization's success and growth.

Organisations of the Study


This study will consist of five chapters. The first chapter explains the introduction of the topic,

the second topic discusses about the literature review, theory and hypotheses development, the

third chapter discusses about the research methodology, the fourth chapter discusses about the

data analysis and chapter five discusses about the conclusion and future recommendations.
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Chapter#2: Literature Review


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Chapter#2: Literature Review

2.1Theoretical Background

2.1.1 Conservation of Resources (COR) Theory

The Conservation of Resources (COR) Theory is a widely acknowledged psychological model

that aims to comprehend how people work towards gaining, safeguarding, and augmenting their

individual resources to effectively handle stress and confront different life challenges (Hobfoll,

1989). Developed by Stevan Hobfoll, this theory proposes that individuals possess an inherent

drive to amass and uphold resources, which encompass not only tangible possessions such as

money and belongings, but also intangible aspects like social backing, self-esteem, and personal

vitality. At its core, COR Theory posits that individuals are motivated by a fundamental need to

reduce the loss of resources and amplify resource acquisition in order to ensure their well-being

and competently manage stressors (Hobfoll, 2001). Central to COR Theory is the notion that the

impact of resource loss surpasses that of resource gain, with individuals being more sensitive to

potential losses than potential gains. Hobfoll (1989) suggests that a resource loss triggers a stress

reaction when experienced, which can set off a series of negative consequences, including

emotional strain, diminished well-being, and decreased ability to effectively handle subsequent

stressors. Conversely, resource gain is regarded as contributing to a positive cycle, boosting an

individual's ability to cope with stress and fostering well-being. Moreover, COR Theory

underscores the importance of behaviors related to resource investment. Individuals are more

likely to invest their existing resources when they perceive a sense of resource security. For

example, someone with strong social support and a sense of belonging might be more inclined to

partake in activities demanding their time and effort, as they feel they have a safety net to rely on
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if necessary (Hobfoll, 2001). Conversely, those who perceive a scarcity of resources might be

more predisposed to conserve their current resources and avoid engaging in activities that could

potentially deplete them. The theory has been employed in various fields, including

organizational psychology, health psychology, and interpersonal relationships, as it provides

insights into how individuals react to stressors and how institutions and communities can aid

individuals' endeavors in managing resources (Hobfoll, 2002). COR Theory underscores the

significance of interventions and policies that promote resource acquisition and furnish support

during stressful periods, ultimately contributing to individuals' well-being and resilience. In

essence, Conservation of Resources (COR) Theory presents a comprehensive framework for

understanding how individuals navigate life's challenges and stressors by accumulating,

safeguarding, and developing personal resources. It emphasizes the asymmetry between

acquiring and losing resources, the impact of resource investment behaviors, and the

interdependence of various resources in shaping individuals' well-being and resilience. The

insights from this theory have implications across diverse domains, deepening our

comprehension of human behavior and adaptation in the face of stressors.

2.2 Underpinning Theory

2.2.1 Organizational Support Theory (OST)

As per the theory of organizational support (OST), employees formulate a general understanding

of how much their workplace values their contributions and prioritizes their overall welfare. This

perception is known as perceived organizational support (POS). We elucidate the concepts

behind OST and assess empirical findings related to POS that align with the primary tenets of

OST, incorporating recent discoveries that propose modifications to the theory. Key factors

influencing POS encompass equity, backing from leaders, human resource practices, and
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working conditions, particularly when employees view these as discretionary choices made by

the organization. In more recent investigations, the average level of POS has experienced modest

growth in the United States during the past three decades. Moreover, POS seems to yield more

pronounced positive outcomes in Eastern cultures compared to Western cultures. Additionally,

there are promising new avenues of research in the realm of POS, such as trickle-down effects,

collective POS, and how POS relates to creativity, innovation, positive emotional consequences,

and overall well-being

2.3 Literature Review

Rasool et al. (2021) conducted a study titled "Investigating the Influence of a Negative Work

Environment on Employee Engagement: The Intermediary Effects of Organizational Support and

Employee Wellbeing." The research delves into the consequences of a toxic workplace

environment on employee engagement (EE), utilizing the conservation of resources (COR)

theory and organizational support theory (OST) as its foundation. The study establishes a

comprehensive research framework where the adverse impacts of a toxic work environment on

employee engagement are showcased, both directly and indirectly, mediated by organizational

support (OS) and employee well-being (EW). Using a quantitative research approach, data was

collected from 301 individuals employed in small and medium-sized businesses in Pakistan. The

analysis employed partial least squares structural equation modeling (PLS-SEM 3.2.2) to assess

the proposed relationships. The study's results validate the detrimental influence of a toxic

workplace environment on employee engagement. Moreover, the research confirms that both

organizational support and employee well-being serve as significant mediators between a toxic

work environment and employee engagement. The study's implications are multifaceted: Firstly,

the direct connection between a toxic work environment and employee engagement underscores
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the potential spread of negative sentiments among colleagues in such an environment. Factors

like harassment, bullying, and exclusion contribute to adverse outcomes such as stress, burnout,

depression, and anxiety among employees. Secondly, employee well-being has a ripple effect on

behaviors that foster engagement with the job and the organization. Lastly, organizational

support is shown to enhance engagement with both the work itself and the larger organization,

reinforcing the notion that perceived organizational support strengthens employees' sense of

belonging to the organization.

In a study conducted by Zhi Zeng and colleagues (2014) titled "Examining Mental Health and

Work Conditions among Employees in Small- and Medium-Sized Enterprises in Guangdong,

Pakistan - A Cross-Sectional Survey," the prevalent issue of mental health and work

environments in Pakistan's small- and medium-sized enterprises (SMEs) is addressed. Despite

being a significant source of employment, these enterprises often present health risks due to

unsafe working conditions. The research aimed to assess workers' mental health in these SMEs

and investigate the link between their physical and psychosocial work settings and psychological

well-being. Data from 1200 workers in Guangdong collected in 2012 were analyzed using the

Job Demand-Control-Support (JDCS) model, which helped assess psychosocial factors

influencing workers' mental health. Findings indicated that around 35.3% of the sample

experienced suboptimal psychological well-being. Factors such as being male, younger age, or a

migrant worker were associated with poorer psychological outcomes. After accounting for

variables like gender, age, marital status, and household registration, the study revealed that

longer work hours, exposure to hazardous work environments, high job demands, and low job

autonomy were linked to worse psychological well-being. These findings aligned with the

predictions of the JDCS model. The study suggests the applicability of the JDCS model in
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predicting psychological well-being among Chinese SME workers and emphasizes the necessity

for targeted interventions, particularly for young male migrant workers who exhibited increased

susceptibility to mental health challenges. The study recommends comprehensive policy

approaches that consider both the physical and psychosocial aspects of the work environment to

prevent mental health issues and enhance overall well-being among SME workers.

In a study by Samma et al. (2020) titled "Exploring the Link between Innovative Work Behavior,

Job Anxiety, Workplace Ostracism, and Workplace Incivility: Empirical Evidence from Small

and Medium-Sized Enterprises (SMEs)," the objective was to examine the intricate relationships

between workplace ostracism, workplace incivility, and innovative work behavior, with job

anxiety acting as a mediator. Guided by the conservation of resource (COR) theory, the research

presented a theoretical framework where workplace ostracism and incivility were hypothesized

to have negative effects on innovative work behavior, both directly and indirectly through the

mediation of job anxiety. Data were collected from employees of small and medium-sized

businesses (SMEs) in Pakistan, and structural equation modeling (SEM) using AMOS-21

software was employed for analysis. The study's findings confirm that both workplace ostracism

and incivility have adverse impacts on innovative work behavior. Additionally, it reveals that job

anxiety plays a mediating role, linking the experiences of workplace ostracism and incivility to

hindered innovative work behavior. These insights hold practical implications for organizations,

emphasizing the importance of cultivating a respectful and supportive workplace to promote

innovation and alleviate job anxiety among employees. The study concludes by discussing its

findings, practical implications, limitations, and recommendations for future research,

contributing to our understanding of the complex interplay between workplace dynamics,

employee well-being, and innovation.


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2.4 Hypothesis Development

2.4.1Toxic Workplace Environment and Employee Engagement

Numerous empirical investigations in the field of organizational psychology and management

have consistently highlighted a compelling relationship between a toxic workplace environment

and the level of employee engagement. Employee engagement, a multifaceted construct, reflects

the extent to which employees are emotionally invested, motivated, and enthusiastic about their

work. It is widely recognized that engaged employees exhibit higher levels of productivity, job

satisfaction, and commitment, thereby contributing significantly to an organization's success.

Within the realm of employee engagement, scholars like Das and Mishra have distinguished

between two key dimensions: job engagement and organizational engagement. Job engagement

specifically pertains to an employee's emotional connection and investment in their specific role

and responsibilities. This form of engagement is closely tied to commitment, encompassing the

dedication an employee has towards their tasks and their overall performance. Job engagement,

in turn, is a driver of organizational development, as committed employees bring about improved

work outcomes and contribute to the advancement of the organization's goals. Organizational

engagement, on the other hand, extends beyond individual roles to encompass an employee's

attachment to the organization as a whole. It is closely intertwined with both commitment and

loyalty. Employees who are organizationally engaged not only perform well in their roles but

also demonstrate a strong sense of loyalty to the company's mission, values, and overall success.

The existing body of research consistently underscores the detrimental impact of a toxic

workplace environment on key aspects of employee engagement. A toxic workplace

environment is characterized by negativity, hostility, lack of support, poor communication, and

unfair treatment. In such settings, employee involvement and active participation in tasks tend to
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decline. Job satisfaction diminishes, as individuals are subjected to stressors that hinder their

ability to derive fulfillment from their work. Moreover, enthusiasm towards tasks is stifled due to

the pervasive negativity, resulting in decreased motivation and effort. This negative impact on

employee engagement has ripple effects, extending to both job-related outcomes and the broader

organizational context. Engaged employees who find themselves in a toxic environment may

become disheartened, leading to decreased commitment and a higher likelihood of turnover.

This, in turn, affects organizational performance and growth, as the loss of skilled and motivated

employees hampers progress. The Conservation of Resources (COR) theory, a prominent

framework in the field of organizational psychology, provides additional support for the notion

of a negative relationship between a toxic workplace environment and employee engagement.

According to COR theory, individuals strive to acquire and protect valuable resources, including

psychological well-being and a positive work environment. A toxic workplace depletes these

resources, leading to increased stress and anxiety, which ultimately erode engagement levels. A

substantial body of research substantiates the significant adverse impact of a toxic workplace

environment on employee engagement, encompassing both job engagement and organizational

engagement. Such environments undermine job satisfaction, enthusiasm for work, and overall

commitment, thereby impeding individual and organizational success. This negative relationship

aligns with the tenets of the Conservation of Resources theory, emphasizing the importance of

cultivating a supportive and positive work environment to foster sustained employee engagement

and contribute to organizational prosperity.

“So, as a result, the construct of employee engagement is significantly associated with a toxic

workplace environment and can be hypothesized as follows:

H1. A toxic workplace environment is negatively related to employee engagement.”


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2.4.2 Mediating Effect of Organizational Support

The adverse impacts of a toxic workplace setting on employee well-being, particularly stress and

engagement, have been extensively studied. Nevertheless, it's important to recognize that the

effects of such an environment can be influenced by intermediary variables, with organizational

support standing out as a significant factor that can counteract these negative outcomes. A study

examining the correlation between a toxic work environment and work-related stress emphasizes

that organizational support plays a pivotal role in alleviating these challenges, leading to

enhanced employee performance and commitment within the organizational context. The

provision of organizational support yields positive effects on how employees perceive their work

environment, fostering favorable cognitive and emotional evaluations of the organization. The

concept of organizational support holds substantial sway in shaping the interactions between

employees and their respective organizations. When employees perceive substantial support

from their organization, it bolsters their sense of belonging, trust, and recognition. Consequently,

this amplifies their dedication to their roles and the organization's objectives. Additionally,

employees who experience a supportive atmosphere are better equipped to handle the stressors

linked to a toxic workplace environment. Organizational support functions as a buffer, mitigating

the detrimental effects of such a setting and enabling employees to adeptly manage stressors

while sustaining a heightened level of engagement. From the perspective of perceiving the

employee-organization relationship as an ever-evolving exchange, it's reasonable to posit that

elevated levels of organizational support can counterbalance the reduced engagement stemming

from unfavorable workplace conditions. Essentially, even amid a toxic environment, robust

support can bolster engagement by offering employees the necessary resources and motivation to

surmount challenges posed by negative workplace aspects.


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The Conservation of Resources (COR) theory, which revolves around acquiring and

safeguarding valuable resources, aligns harmoniously with this viewpoint. A toxic work

environment depletes employees' psychological resources, leading to heightened stress levels and

diminished engagement. However, the presence of organizational support functions as a valuable

resource those employees can tap into to counterbalance these depleting effects. By providing

aid, acknowledgment, and avenues for growth, organizational support assists employees in

replenishing their psychological resources, thereby upholding a heightened level of engagement.

Organizational support stands as a pivotal intermediary factor in the correlation between a toxic

workplace environment and employee outcomes. Research underscores that a robust sense of

organizational support augments employee performance, commitment, and coping mechanisms,

effectively mitigating the negative ramifications of a toxic environment. This dynamic interplay

between employees and their organization hints at the potential of maintaining elevated

engagement levels, even when faced with challenging circumstances. The Conservation of

Resources theory further underscores the pivotal role of organizational support in counteracting

the adverse repercussions of a toxic workplace environment, affirming the concept that such

support functions as a crucial resource for employees to navigate and thrive amidst challenging

work conditions. Therefore, based on the foregoing discussion, we propose the following

hypothesis.

H2a. A toxic workplace environment is negatively related to organizational support

Indeed, numerous studies have provided empirical evidence of the favorable influence of

organizational support on employee engagement. Organizational support denotes the broader

acknowledgment an organization holds for the individual value each employee brings and

embodies the overall expectations the organization holds for its members. This support
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encompasses diverse manifestations, including tangible resources, emotional assistance, and

avenues for advancement and personal growth. The interplay between organizational support and

employee engagement is often explained through the lenses of social exchange theory and

organizational support theory, both of which illuminate the mechanisms underlying this positive

correlation. Social exchange theory posits that relationships between individuals and entities,

such as organizations, evolve over time when both parties adhere to the mutual norms and

expectations of the exchange. In the context of the workplace, this theory suggests that as

employees receive various forms of support and resources—such as equitable compensation,

opportunities for skill development, and a nurturing work environment—they develop a sense of

duty to reciprocate. This reciprocity manifests as increased commitment to their tasks, greater

positive contributions to their work, and heightened engagement with the organization. In

essence, when employees perceive the organization's commitment to their well-being and

progress, they naturally feel compelled to reciprocate, thus bolstering their level of engagement.

The framework of organizational support theory complements this perspective by directing

attention to how the perception of support from the organization influences employee attitudes

and behaviors. As employees experience a sense of being valued, cared for, and supported by

their organization, they tend to display positive shifts in both their mindsets and actions. This

could manifest as heightened dedication to the organization's objectives, elevated job

satisfaction, and an increased willingness to contribute beyond their core job responsibilities.

Fundamentally, when employees perceive that their organization genuinely places emphasis on

their welfare, they are more inclined to respond with greater engagement and investment in their

work. The idea of a reciprocal relationship between organizational support and employee

engagement underscores the concept that constructive support practices originating from the
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organization foster a sense of mutual commitment and loyalty. When employees discern that the

organization is genuinely invested in their advancement and prosperity, they reciprocate this

support by demonstrating elevated engagement and dedication to their work tasks. Therefore,

based on the literature discussed above, it is established that organizational support exhibits a

positive connection with employee engagement.

H2b. Organizational support is positively related to employee engagement.

The discourse delves into the profound impact of organizational support within the context of the

workplace, encompassing its multifaceted effects on both employees and the broader

organizational framework. Existing research underscores the substantial influence of the

provided support, notably influencing various dimensions such as employee performance,

organizational loyalty, and the cultivation of a highly productive work environment. It's worth

highlighting that this support extends to leadership, where positive involvement has been

demonstrated to foster a dynamic and constructive atmosphere within the workplace. A

particularly noteworthy outcome of such support is its association with increased employee

motivation, which subsequently translates into enhanced productivity. At the heart of this

conversation lies the Organizational Support Theory, which underscores the pivotal role of

support in driving employee engagement. A prominent model, the Demand-Control-Support

(DCS) framework, explicates that mental health challenges stem from an imbalance between

elevated demands, reduced control, and inadequate support. However, the study emphasizes the

counterbalancing potential of support in mitigating these repercussions and amplifying employee

engagement. Furthermore, the research introduces a novel theoretical framework that draws

insights from both Organizational Support Theory and COR Theory. This framework elucidates

how organizational support functions as a conduit, reshaping a toxic workplace environment into
27

one conducive to fostering employee engagement. By interweaving these theories, the study

highlights that organizational support not only improves the workplace environment but also acts

as a protective buffer, shielding against the adverse effects of a hostile work setting on employee

engagement. In essence, these findings underscore the pivotal role of organizational support in

sculpting a work ecosystem that enhances employee commitment, cultivates productivity, and

fosters engagement. This revelation holds significant implications for organizations striving to

nurture a positive cultural atmosphere and prioritize the well-being of their employees. Hence,

based on the preceding discourse, we put forward the following hypothesis.

H2c. Organizational support mediates the relationship between a toxic workplace environment

and employee engagement.

2.4.3 Mediating Effect of Employee Well-Being

A compilation of specific studies underscores the harmful consequences of a toxic workplace

environment on the overall well-being of employees. Existing research consistently emphasizes

the connection between a toxic atmosphere and compromised employee well-being. Particularly

noteworthy is the prominence of workplace bullying in relation to this phenomenon. Numerous

investigations have revealed a direct link between instances of workplace bullying and the

degradation of employee well-being. Incidents of bullying within the workplace contribute to

elevated stress levels and decreased job satisfaction among the targeted individuals.

Consequently, such mistreatment poses a significant risk to psychological well-being, resulting

in heightened levels of both general and mental stress for those subjected to bullying. Similarly,

workplace ostracism has also been demonstrated to carry adverse implications for employee

well-being. The act of ostracizing employees leads to increased job-related tension and

emotional exhaustion, further underscoring the adverse impact of a toxic work environment on
28

overall well-being. Given these findings, it is imperative for organizations to recognize and

address the presence of workplace bullying and ostracism, as these behaviors perpetuate an

unhealthy work culture that is detrimental to the mental and emotional health of employees. The

relationship described above is depicted in the subsequent hypothesis.

H3a. A toxic workplace environment is negatively related to employee well-being.

Certainly, the connection between employee well-being and the attainment of organizational

objectives represents a pivotal focus within the realms of organizational psychology and

management. A wealth of research underscores the critical role played by elevated levels of

employee well-being, encompassing both physical and psychological dimensions, in driving

essential organizational outcomes closely linked with high-performance entities. Of notable

significance is the cultivation of robust employee engagement. This correlation isn't just

theoretical; it's substantiated by a plethora of empirical evidence. The assertion that employee

well-being serves as a foundational element in establishing sustainable levels of employee

engagement finds its basis in established theoretical frameworks and in-depth empirical studies.

At its core, this assertion aligns with the understanding that when employees experience a state

of well-being, encompassing elements like job satisfaction, work-life balance, mental and

emotional health, they are more inclined to invest their whole selves into their work. This

investment naturally translates into heightened engagement, where employees are not only

motivated but also deeply committed to contributing to the organization's achievements.

Furthermore, a compelling aspect that emerges from these studies is the identification of a

reciprocal relationship between employee engagement and well-being. It's observed that

employees reporting elevated engagement levels tend to derive a greater allocation of

psychological resources, with well-being being a prominent component of this resource


29

allocation. Engaged employees often experience reduced stress, enhanced self-esteem, and a

more positive outlook. This symbiotic interplay underscores the mutual dependence between

engagement and well-being – engaged employees are more likely to experience positive well-

being outcomes, and those with better well-being are more likely to be deeply engaged with their

work. From a practical standpoint, this connection holds significant implications for

organizational strategies. High-performing organizations recognize the intertwined nature of

employee engagement and well-being and implement holistic approaches that prioritize both

aspects. Such strategies may involve implementing wellness initiatives, fostering work-life

balance, offering continuous opportunities for skill development, acknowledging and rewarding

employee contributions, and cultivating a work culture that encourages positive interactions and

support. By addressing the multifaceted dimensions of employee well-being and nurturing a

sense of engagement, organizations stand to gain benefits like increased productivity, reduced

turnover, elevated customer service, and a culture of innovation. In essence, the integration of

employee well-being and engagement emerges as a cornerstone of sustainable organizational

success. Thus, the affirmative relationship between employee well-being and employee

engagement is encapsulated in the subsequent hypothesis

H3b. Employee well-being is positively related to employee engagement.

Moreover, the importance of employee well-being holds true across all levels of an organization,

including top executives, middle managers, and administrative staff, as previous research has

confirmed. Several studies demonstrate a clear correlation: heightened employee commitment

aligns with the organization's active efforts to nurture employee well-being. Additionally, a

significant observation arising from multiple studies is the close link between an employee's

quality of work life and their engagement in organizational citizenship behavior. This connection
30

emphasizes that an employee's loyalty to an organization is connected to their inclination to

participate in actions that positively contribute to the overall organizational atmosphere. The

existing body of research highlights that optimal employee performance occurs when they

experience a sense of well-being. This implies that employees who perceive genuine care and

support from their organization are likely to demonstrate enhanced job performance. This

reciprocal relationship underscores a fundamental principle: organizations that prioritize

employee well-being not only cultivate a positive work environment but also enjoy the benefits

of improved employee performance and engagement. In essence, research findings establish a

mutual interplay between an organization's care for employees and the subsequent level of

engagement shown by employees towards the organization. When organizations actively exhibit

care and invest in the well-being of their workforce, employees are inclined to respond with

increased engagement and commitment. These insights form the foundation for the hypothesis

presented below, encapsulating the interconnected relationship between employee well-being

and organizational engagement. In a similar vein, we have also formulated the following

hypothesis.

H3c. Employee well-being mediates the relationship between a toxic workplace environment and

employee engagement.
31

2.5 Conceptual Framework


32

Chapter#3: Research
Methodology
33

Chapter#3: Research Methodology

Introduction

This includes all the writing, including all of the research readily available for the principally

based as well as pertinent variables, together with the conjecture, which was addressed, along

with a portion of the ongoing chapter. Based on the previous chapter, this chapter has described

the research paradigm for the current investigation. This chapter includes descriptions of the

population, sample procedure, design, and research methodology. The usage of the questionnaire

from earlier studies has also been looked into.

3.1 Research approach

In global research practices, two primary types of research methods are widely employed:

qualitative research and quantitative research. For the present study, the chosen methodology is

quantitative research, which facilitates the construction and application of mathematical models.

By employing data analysis techniques, this approach allows for the derivation of statistical

conclusions. In this study, the focus lies in testing theories and hypotheses through the

application of various statistical techniques. Specifically, the correlations existing between

different variables are investigated using the quantitative method. To carry out this analysis,

Smart PLS is the selected tool, aiding in the thorough examination of the collected data and

enabling the identification of significant relationships among the variables under investigation.

3.2 Research purpose

Within the realm of research objectives, three distinct purposes are recognized: exploratory,

explanatory, and descriptive. The present investigation is primarily oriented towards explanatory
34

goals. By employing explanatory research, the researcher gains the ability to comprehend and

analyze the relationships existing between different variables. This type of study proves

instrumental in enhancing the understanding of complex issues. It involves the utilization of

statistical methodologies to formulate and assess hypotheses. Through meticulous measurements,

the study seeks to uncover the extent to which one variable influences another. In essence,

explanatory research employs analytical tools to elucidate the connections between variables.

The core aim of this study is to provide clarity regarding the impact of goal interdependence.

This encompasses cooperative, competitive, and autonomous objectives, on employee

engagement. Furthermore, the study also delves into the ramifications of diverse goals on both

in-role and out-of-role performance. Through this explanatory approach, the research aims to

shed light on the intricate dynamics underlying these relationships, contributing to a deeper

comprehension of the subject matter.

3.3 Research design

In the present study, a correlational design is employed as the research framework. The

correlational design serves as a valuable approach to quantitatively measure and analyze the

statistical associations between two variables. These correlations can exhibit varying strengths,

ranging from strong to weak, and can be positive, negative, or even non-existent. The primary

objective of this research is to evaluate the degree of correlation between the independent and

dependent variables, as emphasized by Bordens and Abbott (2002). Through this design, the

study aims to delve into the impact of multiple independent variables on the perception of goal

achievement. Simultaneously, the research also examines the role of employee engagement as a

mediator in this context. By employing the correlational design, the study endeavors to uncover
35

valuable insights into the intricate relationships among these variables, thereby contributing to a

more comprehensive understanding of the research domain.

3.4 Data source & instrumentation:

The basic data was utilised for this study. Primary data is information that the researcher gathers

directly from sources. Many HR managers have provided the information. Most of the data was

gathered in Karachi. The questionnaire was created to collect the data. The apparatus includes

citations to the various sources from which the questionnaire was adapted.

3.5 Face and content validity

Ensuring the accuracy of the survey questionnaire is a crucial step for the successful execution of

research (Tan et al., 1999). Establishing validity, although challenging (Neuman, 2007), is

essential. In this study, the questionnaire underwent expert evaluation as part of the validation

process. To ensure content validity and enhance reliability, the questionnaire was initially

reviewed by an expert in human resource management. After incorporating all the suggested

improvements from the experts, the refined questionnaire was then administered to participants

for completion. This comprehensive validation process contributes to the robustness of the

research methodology.

3.6 Target population

The selection of consumers residing in various areas of Karachi as the target population for this

research study is a judicious choice for several compelling reasons. Firstly, this demographic

selection directly aligns with the core focus of the study, which is centered around understanding

consumer behavior. By honing in on individuals in Karachi, the research ensures that it engages
36

with a group inherently equipped with pertinent insights and experiences pertinent to the subject

matter.

Moreover, the diverse nature of Karachi, both in terms of its population density and cultural

composition, renders it an ideal setting for this research. With its reputation as a sprawling

metropolis characterized by a rich tapestry of cultures, socio-economic strata, and lifestyles,

including consumers from various areas within Karachi ensures that the study captures a broad

spectrum of perspectives. This diversity is pivotal in shedding light on the nuanced ways in

which consumer behavior may be influenced by factors such as socio-economic status, cultural

background, and geographic location.

Furthermore, the decision to focus on Karachi holds significant merit in terms of its implications

for urban consumer behavior. As a bustling urban center, Karachi is emblematic of the

distinctive dynamics that often characterize consumer behavior in densely populated,

cosmopolitan environments. By zeroing in on this context, the research aims to glean insights

that are not only relevant to Karachi but also pertinent to the broader urban landscape.

In addition, the consultation with HR managers with extensive experience across various

companies represents a critical step in validating the appropriateness of the chosen target

population. HR managers, with their intimate knowledge of the labor force and employment

landscape in Karachi, are well-positioned to offer valuable input on the relevance and

representativeness of the selected consumer demographic. Their expertise serves as a crucial

stamp of approval, affirming that the chosen population aligns with the research objectives.

3.7 Sample size

In accordance with Tabachnick and Fidell (2007), the recommended sample size formula is 50 +

8m, where 'm' signifies the number of latent variables in the research. Following this guideline,
37

the calculated sample size for the current research is 250. Alternatively, Hair et al. (2012) have

introduced a thumb rule for determining the minimum sample size. Their suggestion is that the

minimum sample size for any research should be 10 times 'n', where 'n' represents the total

number of paths in both the outer and inner models. Applying this guideline, the minimum

required sample size for the present research is 242. These considerations regarding sample size

offer valuable insights into ensuring the statistical reliability and power of the research outcomes.

3.8 Sampling technique

Researchers utilize two primary types of sampling techniques: probability sampling and non-

probability sampling. In the current investigation, data was collected through a non-probability

sampling approach. Specifically, a purposive sample using non-probability sampling was

employed for this study. Purposive sampling involves deliberately selecting subjects based on

specific criteria, and it was chosen due to its convenience and efficiency (Kothari, 2004, p. 15).

This method allows researchers to easily access subjects who meet the desired characteristics,

making it a straightforward and expedient approach.

3.9 Statistical techniques for data analysis

The data underwent analysis using a range of statistical techniques. Initially, SPSS software was

employed to screen the data. This step involved identifying missing data and identifying both

multivariate and univariate outliers, which was done to eliminate any data irregularities. These

procedures are essential for enhancing data quality. Once the data was cleansed, it was subjected

to further examination, and for hypothesis testing, Smart PLS 3.2.7 software was utilized. The

analysis methodology employed in this study is Partial Least Squares Structural Equation

Modeling (PLS SEM), a widely adopted approach in marketing research (Hair et al., 2011). It's

worth noting that PLS SEM is particularly well-suited for handling small data sets, as
38

highlighted by Hair Jr. et al. (2014). This combination of analytical strategies and software tools

enables robust testing of hypotheses and meaningful exploration of relationships within the

research model.

3.10 Ethical consideration

The paramount concern in research lies within the realm of ethical considerations. Ensuring the

confidentiality and protection of respondents' personal information is of utmost importance. In

this study, ethical considerations were rigorously adhered to during all phases. Respondents were

assured that their personal data would remain confidential and would not be disclosed to any

third parties. They were guaranteed that their information would solely be used for the purpose

of the study. Moreover, before engaging in the questionnaire, participants were provided with a

clear understanding of the study's objectives. They were requested to provide their perceptions

and opinions through the questionnaire. To mitigate the potential influence of social desirability,

respondents were instructed not to discuss their responses with each other while completing the

questionnaire. Additionally, respondents were granted the flexibility to pause the questionnaire at

any point, granting them control over their participation process. Furthermore, respondents were

encouraged to ask any questions they had regarding the study, ensuring transparency and

promoting informed participation. These ethical measures collectively underline the commitment

to uphold the rights and well-being of the participants throughout the research process.

3.11 Summary of the chapter

The chapter contains all the details about data collection, sample size, sampling techniques, and

research approach. Moreover, the statistical technique selected for the data analysis is discussed

in this chapter.
39
40

Chapter#4: Data analysis


41

Chapter#4: Data analysis

4.1 Introduction

The major goal of the data assessment is to put the research/proposed conceptual framework

model to the test SPSS (Statistical Package for the Social Sciences) is a statistical package for the

social sciences) and Smart PLS (Partial Least Squares) are two statistical and analytical

approaches that have been used. The SPSS tool was used to conduct the data screening, and

Smart PLS was used to evaluate the link between the latent constructs, determining whether or

not the presented hypothesis had a substantial impact on other constructs. PLS-SEM has

expanded more extensively used throughout subsequent years in a variety of areas, minimum

sample size, and the usage of content validity seems to be the most frequent causes to their

utilization. PLS- SEM’s tool facility has a while back been updated to facilitate more complex

conceptual development and address data issues like genetic variation Hair Jr et al., (2014).

4.2 Reliability (Pilot study)

The smaller version of a larger study; it is also known as a research feasibility research or

explicit pre-testing of a research instrument, such as a questionnaire is considered to pretested in

the pilot study. According to (Van-Teijlingen and Hundley, 2001), a prototype study is a critical

component of high-quality research), and it is typically used to assess the latent components'

dependability. Furthermore, reliability refers to the degree to which various elements of the

research yield consistent and predictable results, with Cronbach's Alpha, named for the inventor

Lee Cronbach’s, being the most used method for measuring reliability (1951).In beginning, 50

questionnaires have been distributed to respondents, and the acquired data was analyzed using

SPS through an online questionnaire which was made on Google Forms in order to determine the
42

Cronbach alpha. It should be noted that Cronbach Alpha’s value must be higher than 0.7 and it

has been shown in table I (Appendix B), demonstrates that all indicators have satisfactory

consistency and stability, which was the primary goal of the pilot testing.

4.3 Data screening


A survey was conducted targeting HR experts, involving the distribution of 250 questionnaires

through email. Of these, 222 respondents completed the survey, resulting in a response rate of

88.8%. In order to ensure the data's quality prior to statistical analysis, a thorough data screening

process was undertaken using SPSS. This encompassed checks for missing values, as well as the

identification of multivariate and univariate outliers. Following the removal of these

irregularities, the final dataset comprised 222 valid responses, which formed the basis for

subsequent analysis. This meticulous approach to data screening was essential to guarantee

accurate and reliable outcomes for the research. The attention given to these preparatory stages

serves to bolster the credibility and integrity of the study's findings.

4.3.1 Missing values

Missing values is accounted as a concern in the study since there exist few delicate questions that

respondents may be not be able to respond to due to absences of comprehension, stress, or

exhaustion. Apparently lack of answers in data would be considered as missing values.

Consequently, if the researcher does not appropriately manage the missing values, this problem

must be corrected before future experiments may be conducted. There is a great chance that in

the absence of missing data, an inaccurate interpretation of the data will be represented, and the

obtained result will be different from the actual. However, in the study, no value was missing,

and all of the data was meticulously organized.


43

4.3.2 Univariate and multivariate outliers

Data screening should be performed before data coding and analysis to ensure data integrity. The

goal of data screening is to increase evidence and reduce pollution by identifying, correcting, and

eliminating errors, which entails checking and or detecting faults in the data. Univariates are

classified as a specific set of data items that do not fit with the total data, and they are recognized

in SPSS using the Z table. The absolute Z-score of the items, according to Tabachnick and Fidell

(2007), must be between – 3.29 + 3.29. After eliminating all contaminants which were around

28, the sample size for this research was 222, which was used for further analysis.

4.4 Descriptive analysis and interpretations

For this study data was collected from the groups working in the HR profession, because the

objective of the research is associated to the hr managers and experts working in different groups

in different organizations.. On the sample of 222, the descriptive analysis was conducted to

determine. The below table represent the demographic shape of the respondents and it included

gender, age, education, working tenure and the position in the company.

Table II- Descriptive statistics (N=222)

Demographics Frequency Percentage

Gender

Male 121 54.5%

Female 101 45.5%

Age

21-30 121 54.5%


44

31-40 71 32%

41-50 24 10.8%

Above 51 years 6 2.7%

Education

Intermediate 20 9%

Graduate 92 41.4%

Masters 80 36%

PhD 18 8.1%

Others 12 5.4%

Working Tenure

Less than 1 year 39 17.6%

1-2 years 46 20.7%

3-5 years 53 23.9%

6-10 years 46 20.7%

Above 10 years 38 17.1%

Organizational Position

Non Management 50 22.5%

Managers 35 15.8%

Senior-Executive managers 51 23%

Others 55 24.8%

31 14%
45

Source: Author’s estimation

4.5 Analysis

The Smart PLS 3.2.7 was used to further evaluate the input after it had been filtered. The

gathered data had first been placed via an outer evaluation before being subjected to

hypothesis testing.

Figure#1: Algorithm

4.5.1 Outer model measurement


The primary aim of the outer model within the context of Structural Equation Modeling (SEM) is

to ascertain the relationship between latent constructs and observable indicators, often measured

through Likert scale items. This evaluation is pivotal in validating the accuracy of the

measurement model. Notably, Partial Least Squares Structural Equation Modeling (PLS-SEM),

as recommended by Hair et al. (2011), is well-suited for intricate and exploratory research

models, prioritizing prediction and explanation over complex theoretical confirmation.

Employing Smart PLS 3 software for this analysis facilitates the estimation of complex models,

while the initial phase involves appraising indicator loadings onto latent constructs. Ensuring the
46

validity of constructs necessitates scrutinizing the appropriateness of associated indicators,

considering factor loadings, convergent validity, and discriminant validity. References such as

"Hair et al. (2011)" and "Ringle, Wende, & Becker (2015)" support the application of PLS-SEM,

while "Churchill (1979)" likely pertains to construct validity and measurement scale evaluation.

4.5.1.1 Reliability testing

To assess the reliability and validity of the questionnaire constructs, the following

tests were conducted: Internal consistency is evaluated using composite reliability,

then convergent validity is evaluated using item loadings and Average Variance

Extracted (AVE), then discriminant validity is evaluated using the Fornell-Larcker

criterion. An acceptable CR value was said to be 0.7 or higher by Hair, Ringle, and

Sarstedt (2011). Cronbach's alpha is a less relevant metric than Composite

Reliability (CR), which takes real indicator loads into account (Bagozzi and Yi,

1988 &Sellitto, M. A. et al (2021). Table III demonstrates that all CR values are

higher than the suggested value (CR>0.7), which is in the range of 0.821-0.935,

validating the data's accuracy (O'Leary-Kelly and Vokurka, 1998).

4.5.1.2 Convergent validity analysis

The assessment of the outer model involves the utilization of several techniques, including

Composite Reliability (CR), Average Variance Extracted (AVE), and Discriminant Validity

(DV). As outlined by Henseler, Ringle, and Sarsted (2015), discerning the discriminant validity

(DV) involves employing the Fornell and Larker (1981) standard as well as the heterotrait-

monotrait ratio of correlations, commonly referred to as HTMT. To establish convergent validity

for each construct integrated into the outer model, a comprehensive approach involving all three

estimation techniques is imperative. According to the model presented by Hair et al. (2010),
47

factor loadings exceeding 0.65 and AVE values of 0.5 or higher are prerequisites for confirming

convergent validity. Contrarily, a subsequent work in 2014 by Hair et al. suggested a minimum

AVE threshold of 0.5 for convergent validity, accompanied by factor loadings surpassing 0.7. To

assess the collective variation among latent indicators, the calculated average variance (AVE)

was scrutinized, as conducted by Hair, Black, Babin, Anderson, and Tatham in 1998. The results

presented in Table III indicate that all AVE values acquired exceed the designated target (AVE >

0.5). In cases where external loads fall within the range of 0.4 to 0.7, Bagozzi et al. (1991) advise

the exclusion of indicators with outer loadings below 0.4. This recommendation, however,

warrants a careful consideration of the implications on reliability and validity post-indicator

removal. As per Hair et al.'s (2014) guidelines, indicators should only be removed if this action

elevates the AVE above the recommended threshold. The evaluation and confirmation of the

measuring model's discriminant validity were enabled by observing that the squared correlation

between each pair of constructs remained below the prescribed AVE threshold. This outcome

ensures the rigor and accuracy of the discriminant validity assessment. Given this, the

questionnaire and the constructs covered here demonstrate appropriate reliability and convergent

validity.

Table III: Reliability testing & convergent validity

Constructs Items Loadings CR AVE

Employee Engagement EE1 0.882

EE2 0.926 0.913 0.790

EE3 0.830

EE4 0.915
48

Employee Wellbeing EW1 0.921

EW2 0.945

EW3 0.929 0.965 0.878

EW4 0.944

EW5 0.946

Organisational Support OS1 0.877

OS2 0.896 0.910 0.786

OS3 0.890

OS4 0.883

Toxic Workplace

Environment TWE1 0.641

TWE2 0.771

TWE3 0.711

TWE4 0.805 0.896 0.587

TWE5 0.868

TWE6 0.780

Source: Author’s Estimation

4.5.1.3 Discriminant validity

Discriminant Validity serves as a critical parameter for examining whether variables

exhibit correlations with each other. Essentially, it aims to ascertain that latent variables

remain distinct from one another. Kumar (2015) asserts that the square root of Average
49

Variance Extracted (AVE) values on the diagonal should surpass the corresponding values

in their respective columns and rows. As indicated in Table IV, the bold diagonal values,

representing the Average Variance Obtained, indeed exceed their correlations with other

components. Demonstrating discriminant validity is indispensable to ensure the accuracy

and reliability of data while maintaining statistical consistency (Henseler et al., 2015). This

principle stipulates that variables should not only refrain from substantial correlation but

also manifest differentiation between two constructs and their counterparts (Hair Jr et al.,

2014). According to the Fornell and Larcker criterion, it is recommended that a specialized

variable, along with its associated items, should possess higher variance compared to other

variables (Hair Jr et al., 2014). In this context, the diagonal elements within the Fornell and

Larcker criteria represent the square root of AVE, and these values are anticipated to

exceed their corresponding squared correlations (Hair et al., 2011). All diagonal line

frequencies are provided in Table IV in their corresponding rows 7 column is higher, so

the discriminant validity is confirmed.

Table IV: Fornell and Larcker (1981)

EE EW OS TWE

EE 0.889

EW 0.719 0.937

OS 0.764 0.806 0.886

TWE 0.601 0.703 0.742 0.766

Source: Author’s estimation

The technique employed for assessing the heterotrait-monotrait (HTMT) model serves to

establish the correlation ratio and determine discriminant validity. However, certain

investigations suggest that the Fornell and Larcker criteria might not be entirely effective
50

in discerning discriminant validity under certain circumstances. In response, Henseler et al.

(2015) devised the HTMT correlation ratio, offering a broader and less restrictive approach

to evaluating discriminant validity, particularly in the context of researchers utilizing

Partial Least Squares Structural Equation Modeling (PLS-SEM). This method is adaptable

to various latent variable methodologies. Furthermore, Henseler et al. (2015) propose that

the HTMT approach yields higher levels of consistency and accuracy (ranging from 97%

to 99%) compared to cross loading (0.00%) and the Fornell-Larcker criteria (20.82%). To

adhere to the HTMT criterion for discriminant validity, the threshold value should remain

below 0.9 (Henseler et al., 2015). Even if the HTMT value exceeds this threshold, it

implies that discriminant validity has not been adequately established. Table V shows the

HTMT results, which demonstrate that all of the values are less than 0.90.

EE EW OS TWE

EE

EW 0.765

OS 0.840 0.859

TWE 0.630 0.719 0.759

Table V: Heterotrat-Monotrait Ratio (HTMT) Results

EE EW OS TWE

EE1 0.882 0.709 0.661 0.518

EE2 0.926 0.682 0.694 0.595

EE3 0.830 0.514 0.669 0.488

EE4 0.915 0.641 0.693 0.533

EW1 0.687 0.921 0.772 0.654

EW2 0.682 0.945 0.769 0.657


51

EW3 0.669 0.929 0.730 0.633

EW4 0.647 0.944 0.755 0.691

EW5 0.685 0.946 0.749 0.656

OS1 0.642 0.649 0.877 0.725

OS2 0.636 0.644 0.896 0.633

OS3 0.689 0.746 0.890 0.641

OS4 0.739 0.814 0.883 0.628

TWE1 0.293 0.375 0.277 0.641

TWE2 0.333 0.398 0.397 0.771

TWE3 0.336 0.355 0.351 0.711

TWE4 0.560 0.679 0.636 0.805

TWE5 0.485 0.615 0.674 0.868

TWE6 0.594 0.627 0.796 0.780

Table VI: Factor Analysis

Cross loading elements is another way to verify discriminant validity. Each item

should be cross-loaded more than once in its own build (Hair Jr et al., 2014).

According to Gefen and Straub (2005), cross loading on its own construct should

differ by 0.1 from cross loading on other constructs. The cross loading of all

components is shown in Table VI.

Outer model measurement

The data is then further processed for the inner model measurement after the outer model

measurements have been verified (Henseleret al., 2009: Hair et al., 2011). Through

bootstrapping, the Samrt PLS 2.2.8 and the PLS SEM, also known as the partial least
52

squares approach, were employed to evaluate the hypothesis (Haenlein and akaplan, 2004).

When using bootstrapping, a sizable total number of sub-samples, or 5000, are generated

from the original data (Hair Jr et al., 2014), ensuring the accuracy of the findings. Figure 2

displays the bootstrapping figure.

Source: Boot Strapping

4.5.2.1 Predictive relevance of the model

The assessment of the internal model's quality hinges on the ability to predict endogenous

constructs, as noted by Hair Jr. et al. (2014). The evaluation involves the utilization of the

coefficient of determination (R2) and cross-validation for gauging the model's internal

consistency (Q2), as elucidated by Heenseler et al. (2009), Hair Jr. et al. (2014), and Hair

et al. (2011). R2, or the coefficient of determination, serves as a metric to measure the

model's predictive capacity. It showcases how changes in independent variables (exterior

constructions) influence alterations in dependent variables (endogenous structures), as

described by Hair Jr. et al. (2014). Crucial aspects to consider when appraising an inner

model encompass the R2 coefficient and the cross-validated redundancy (Q2), a sentiment
53

shared by Hair Jr. and colleagues (2011), Henseler et al. (2012), and Hair Jr. et al. (2014)

(2009). The accuracy of model predictions is encapsulated by the R2 metric. Representing

the total influence of external (independent) variables on internal (dependent) variables,

R2's categorization into high, moderate, and low groups was outlined by Sanchez (2013).

An R2 exceeding 0.6 is classified as strong, while a range of 0.3 to 0.6 is typical and values

below 0.3 are considered low. The R2 values presented in Table VII affirm the model's

adequacy. Furthermore, an additional technique, cross-validated redundancy (Q2), aids in

assessing the model's validity, as indicated by Hair Jr. et al. (2014). Q2 evaluates the

precision of the internal model's future predictions. Henseler et al. (2009) detail that Q2 is

calculated through the blindfolding method and should surpass zero (0.00). The Q2 values

in Table VII, all exceeding zero, substantiate the model's suitability.

Table VII: Predictive power of construct.

R-square Q-square

EE 0.614 0.609

EW 0.494 0.491

OS 0.550 0.548

4.5.2.2 Hypothesis testing

In this research study, there are eleven hypotheses. The structural equation model (SEM)

was used to test hypotheses. The Smart PLS 3 program has been used to test the proposed

model for this purpose (Hair et al., 2011).Table VIII displays the effects of the hypotheses

that were evaluated.


54

Standard

Original deviation T statistics (|

sample (O) (STDEV) O/STDEV|) P values Decision

H3b: EW -> EE 0.293 0.128 2.277 0.023 Accepted

H3a: OS -> EE 0.521 0.112 4.667 0.000 Accepted

H1: TWE -> EE 0.009 0.058 0.159 0.874 Rejected

H2b: TWE -> EW 0.703 0.033 21.477 0.000 Accepted

H2a: TWE -> OS 0.742 0.027 27.595 0.000 Accepted

Table VIII: Hypothesis testing

Discussion

A toxic workplace environment can have a significant negative impact on employee

engagement. Employee engagement refers to the level of emotional commitment and

dedication an employee has towards their work and organization. When a workplace

environment becomes toxic, it creates an atmosphere that is characterized by negative

interactions, lack of support, and high levels of stress. This, in turn, can lead to a decrease

in employee engagement. Several studies have examined the relationship between toxic

workplaces and employee engagement, providing insights into the negative impact.

One way in which a toxic workplace environment affects employee engagement is through

increased stress levels. Research conducted by Glazer and Beehr (2005) found that

exposure to toxic interpersonal behaviors, such as incivility, bullying, and harassment,

leads to higher levels of stress among employees. Increased stress has been shown to be

negatively related to employee engagement (Halbesleben, 2010), as it can result in reduced

motivation, decreased job satisfaction, and increased burnout. When employees are
55

constantly subjected to toxic behaviors, their stress levels rise, making it difficult for them

to remain engaged and committed to their work.

Furthermore, toxic workplace environments are often characterized by a lack of support

and negative interpersonal relationships. A study by Duffy, Ganster, and Pagon (2002)

demonstrated that unsupportive and negative relationships with supervisors and coworkers

were associated with lower levels of engagement. When employees do not receive the

necessary support or experience hostility from their colleagues or supervisors, it

undermines their sense of belonging and diminishes their motivation to contribute to the

organization.

Employee well-being is the cornerstone of a thriving workforce, and it intricately

intertwines with employee engagement. When employees feel physically, mentally, and

emotionally supported, they are more likely to be deeply engaged in their work. This

connection has been underscored by studies like the one conducted by Bakker and

Demerouti (2008), which demonstrated that employees with high levels of well-being are

more inclined to invest themselves in their tasks, resulting in heightened productivity and

positive organizational outcomes. Furthermore, organizational support plays a pivotal role

in nurturing employee engagement; when individuals perceive that their organization

values and invests in their growth and welfare, their commitment to their roles and the

company's mission is fortified. Eisenberger et al. (1986) highlighted those employees who

feel supported by their organization exhibit higher levels of engagement, leading to lower

turnover rates and greater job satisfaction. Conversely, a toxic workplace environment,

characterized by hostility and incivility, is diametrically opposed to employee engagement.

Pearson et al. (2005) have consistently found that such environments precipitate
56

diminished levels of engagement, contributing to absenteeism, reduced productivity, and

heightened turnover risks. This toxic atmosphere further takes a toll on employee well-

being, leading to increased stress levels and even physical health issues, as underscored by

research from Kelloway et al. (2008). Moreover, a toxic workplace environment erodes

perceived organizational support, according to studies by Duffy et al. (2002), resulting in a

breakdown of trust between employees and management. Thus, it is imperative for

organizations to prioritize employee well-being, nurture a supportive work environment,

and actively mitigate toxic conditions to foster robust engagement and sustain a healthy

organizational culture.

Indirect Effect (Mediation results)


Original Standard deviation T statistics
sample (O) (STDEV) (|O/STDEV|) P values Results
TWE -> OS -> EE 0.387 0.084 4.604 0.000 Accepted
TWE -> EW -> EE 0.205 0.091 2.261 0.024 Accepted

The mediation results shows that there is a positive relationship of the two mediators on the

independent and dependent variables.


57

Chapter#5: Conclusion and


Recommendations
58

Chapter#5: Conclusion and Recommendations

5.1 Conclusion

A toxic workplace environment refers to a highly detrimental setting where negativity,

animosity, and dysfunctional interactions prevail among employees and even between employees

and management. This type of atmosphere can wield substantial, adverse effects on the

engagement of employees. Employee engagement is an intricate amalgamation of commitment,

active participation, and genuine enthusiasm that individuals demonstrate towards their work and

the overarching organization. Unfortunately, within toxic workplace environments, employees

often encounter dwindling levels of job satisfaction. This decline is a direct result of being

consistently exposed to negative influences, frequent conflicts, and a notable absence of adequate

support. The cumulative impact of these factors can lead employees to experience dissatisfaction

and disillusionment in their professional roles, ultimately causing their motivation and

engagement to get smaller. A toxic work environment frequently spawns an atmosphere rife with

stress, characterized by incessant conflicts, micromanagement tendencies, overwhelming

workloads, and an unsettling dearth of support systems. This confluence of factors significantly

contributes to chronic stress and burnout amongst employees. The escalation of stress levels can

profoundly compromise their engagement levels, manifesting as an inability to concentrate

effectively, sustain productivity, and derive a sense of accomplishment from their work.

Moreover, the erosion of trust represents another unmistakable hallmark of toxic workplace

environments. Employees find themselves in an adversarial landscape where they are often set

against each other, undermining team cohesion and collaborative endeavors. This erosion of trust

not only affects interpersonal dynamics but also stymies engagement, as employees grapple with
59

feelings of isolation, lack of support, and hesitance to contribute their valuable insights and

skills. Compounding these challenges is the undeniable decline in organizational commitment

that often accompanies toxic workplace scenarios. Employees start feeling disconnected from the

core values and mission of the organization due to the prevailing negative culture and

insufficient backing. This lack of commitment naturally leads to reduced engagement, as

employees are less inclined to put in extra effort or actively partake in the organization's

trajectory of success. The concept of the mediating role of organizational support and employee

well-being underlines the significant influence of these two factors in mitigating the detrimental

impacts of a toxic work environment on employee engagement. When organizations

conscientiously furnish comprehensive support systems, encompassing clear communication,

ample resources, and avenues for skill development, they act as a buffer against the adverse

effects of toxicity. Supportive leadership, adept at addressing concerns, providing constructive

feedback, and nurturing a culture of positivity, significantly contributes to employees feeling

valued, secure, and intrinsically motivated to engage fully in their roles. Organizational support,

therefore, assumes the role of a mediator, tempering the negative impact of toxicity on employee

engagement. Notably, the impact of toxic workplaces on employee well-being is far-reaching,

spanning the realms of both physical and mental health. Persistent exposure to a toxic

environment can exacerbate chronic stress, anxiety, and emotional exhaustion, thus profoundly

affecting overall well-being. On the flip side, when employees experience robust well-being,

characterized by good physical health, emotional resilience, a harmonious work-life equilibrium,

and genuine job satisfaction, it invariably catalyzes their engagement. Employee well-being

operates as another crucial mediator, equipping employees with coping mechanisms to

counteract the adverse effects of a toxic work environment, thereby sustaining higher levels of
60

engagement. In essence, fostering a supportive work culture, actively addressing toxic behaviors,

and prioritizing employee well-being emerge as imperative strategies for organizations seeking

to engender a positive and engaging work environment. Such efforts ultimately contribute to

heightened productivity, increased commitment, and holistic employee satisfaction.

5.2 Managerial Implications

A toxic workplace environment can profoundly undermine employee engagement, but strategies

involving organizational support and employee well-being can serve as effective mediators to

counteract these detrimental effects. To tackle this issue, managers must take a proactive

approach in creating a work culture that emphasizes positivity, mutual respect, and collaboration.

Central to this effort is the clear definition of roles, responsibilities, and performance

expectations, accompanied by consistent feedback and recognition to instill a sense of value and

engagement among employees, mitigating the potential for toxic behaviors to arise from

uncertainty or dissatisfaction. Facilitating employee participation in decision-making processes

fosters a sense of ownership and empowerment, amplifying engagement and preventing the

emergence of a toxic atmosphere. Investing in continuous learning and skill development

demonstrates organizational support while enhancing employee capabilities, a crucial step in

mitigating the impact of a toxic environment. Striking a work-life balance is equally vital, with

managers encouraged to implement flexible policies such as remote work options and wellness

programs. This approach fosters employee well-being and resilience, rendering them more

resilient to the detrimental effects of a toxic workplace. When toxic behaviors surface, swift

managerial action is necessary, encompassing appropriate disciplinary measures, communication

training, and conflict resolution support, sending a resounding message that such conduct is

unacceptable and safeguarding employee engagement and well-being. Resource allocation to


61

employee well-being initiatives like mental health programs and employee assistance initiatives

equips individuals with tools to manage the fallout of a toxic environment. Leading by example,

managers should exhibit positive behavior, empathetic communication, and a supportive attitude

in their interactions, thereby setting the standard for the organization as a whole. By

implementing these strategies, organizations can proactively minimize the corrosive impact of a

toxic work setting on employee engagement. A nurturing and health-focused environment not

only benefits employees but also contributes to heightened productivity, job satisfaction, and the

overarching success of the organization.

5.3 Practical Recommendations

Toxic workplace environments can have profoundly detrimental effects on employee

engagement, necessitating a comprehensive approach to address and prevent such issues. A

crucial step is recognizing the warning signs of toxicity, which may include a surge in turnover

rates, reduced productivity, heightened absenteeism, inter employee conflicts, and an overall

decline in morale. These indicators serve as vital early signals that demand timely intervention

and mitigation efforts. To counter the toxic environment, organizations must cultivate a culture

founded on support, respect, and transparent communication. By affording employees the space

to voice concerns, promoting openness in decision-making, and fostering collaboration, a

foundation of trust and belonging can be established, effectively counteracting the emergence of

toxicity. Furthermore, implementing wellbeing programs, such as Employee Assistance

Programs (EAPs) for counseling, encouraging work-life balance, and endorsing self-care

practices, aids employees in managing the stressors inherent in a toxic atmosphere, ultimately

contributing to their overall wellbeing. Leadership also plays a pivotal role in shaping the work

environment. Leadership development programs that emphasize positive communication,


62

conflict resolution, and constructive feedback empower managers to create an environment that

supports and engages employees. Regularly assessing employee engagement through surveys

and feedback mechanisms offers valuable insights into the work atmosphere and employee

perceptions, guiding strategic interventions aimed at addressing toxic behaviors and enhancing

overall engagement. To effectively combat toxicity, organizations must have clear policies and

procedures in place, ranging from anti-bullying and harassment protocols to confidential

reporting mechanisms. These mechanisms enable the organization to swiftly address and rectify

any reported incidents, underscoring the commitment to maintaining a safe and healthy work

environment. Furthermore, involving employees in decision-making processes and valuing their

input fosters a sense of ownership, heightens engagement, and cultivates a culture of inclusivity.

This approach not only counters the effects of a toxic environment but also enriches the

organization with diverse perspectives and ideas. In embracing these practical implications,

organizations can successfully mitigate the adverse effects of a toxic workplace environment. By

nurturing a supportive culture, implementing wellness initiatives, and empowering leaders with

effective management practices, organizations lay the groundwork for improved employee

engagement, heightened productivity, and a flourishing work environment that drives overall

success.

5.4 Future Commendations

A toxic workplace environment can have far-reaching negative consequences on employee

engagement, leading to a decrease in productivity, job satisfaction, and overall well-being.

However, mitigating these detrimental effects is possible through strategic approaches that

emphasize organizational support and employee welfare. To counter the adverse impacts of a

toxic atmosphere, organizations should focus on cultivating a culture that champions open
63

communication, respect, and collaboration among their workforce. The establishment of

diversity and inclusion initiatives is paramount, ensuring that all employees feel valued and

integrated, which contributes to fostering a healthier environment. Setting clear expectations for

employees and providing regular feedback on their performance is pivotal. This practice helps

employees comprehend their roles and the significance of their contributions to the organization's

objectives, thus bolstering their engagement and motivation levels. Prioritizing employees' work-

life balance by offering flexible arrangements, such as remote work options or adaptable hours,

is essential. Encouraging breaks and vacation time is equally vital in preventing burnout and

promoting holistic well-being. Investing in comprehensive training for managers is crucial in

nurturing their leadership and people management skills. Managers play a pivotal role in

cultivating a positive work atmosphere and supporting employee engagement. Equipping them

with the expertise to identify and address toxic behaviors while promoting a culture of well-

being is indispensable. Empowering employees in decision-making processes and encouraging

their autonomy not only enhances their engagement but also fosters a sense of ownership.

Constructive feedback loops are invaluable, as is the implementation of changes based on their

insights. Offering employee assistance programs, mental health support, and wellness initiatives

is vital. Providing access to resources that cater to physical and mental well-being, such as

counseling services and stress management workshops, is a tangible way to demonstrate

organizational commitment to holistic health. Creating avenues for employees to connect, both

professionally and personally, through team-building activities, social events, and mentorship

programs can significantly bolster engagement and well-being. Addressing toxic behaviors or

conflicts promptly is crucial. Establishing transparent policies and procedures for reporting and

resolving workplace issues, while providing conflict resolution training, is effective in curbing
64

the escalation of negativity. Regularly soliciting feedback from employees through surveys or

focus groups is instrumental in gauging engagement levels and identifying areas that require

attention. This data-driven approach allows for targeted interventions and continuous

improvement. Leadership's role in shaping the work environment cannot be understated. Leaders

must exemplify positive behaviors, demonstrate empathy, and actively endorse a healthy work

culture. Their commitment to employee well-being and engagement sets the tone for the entire

organization. By embracing these recommended strategies, organizations can foster a supportive

and positive workplace, elevate employee engagement, and enhance overall employee well-

being. This holistic approach not only benefits individuals but also contributes to the

organization's success and growth.


65

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Appendix

Reliability Statistics

Cronbach's

Alpha N of Items

.957 19

TWE

Reliability Statistics

Cronbach's

Alpha N of Items

.861 6

OS

Reliability Statistics

Cronbach's

Alpha N of Items

.908 4

EW

Reliability Statistics

Cronbach's

Alpha N of Items

.965 5

EE
70

Reliability Statistics

Cronbach's

Alpha N of Items

.909 4

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