final capstone report_2

Capstone Project Report

A study on relationship between HRD climate and employee

engagement of service sector employees in the region of

Jalandhar(Punjab)

Submitted to LOVELY PROFESSIONAL UNIVERSITY

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration

Submitted by: Research Supervisor:

Tappin Sood(Reg No 3020070050) Miss Ridhi Arora

Deepee Danwra (Reg no 3020070013)

Isha Sachar (Reg no 3020070222)

Vrinda Sethi (Reg no 3020070038)

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

(2010-2012)

CERTIFICATE

This is to certify that Deepee Danwra bearing Registration no. 3020070013 has

completed his capstone project titled, “A study on relationship between HRD

Climate and Employee Engagement of service sector in the region of Jalandhar”

under my guidance and supervision. To the best of my knowledge, the present

work is the result of his original investigation and study. No part of this report has

ever been submitted for any other degree at any University.

The capstone report is fit for submission and the partial fulfillment of the

conditions for the award of Master of Business Administration.

Signature and Name of the Research Supervisor

Designation

School

Lovely Professional University

Phagwara, Punjab.

Date:

CERTIFICATE

This is to certify that Isha Sachar bearing Registration no. 3020070222 has









Designation

School


Phagwara, Punjab.

Date:

CERTIFICATE

This is to certify that Tappin Sood bearing Registration no. 3020070050 has

completed her capstone project titled, “A study on relationship between HRD



work is the result of her original investigation and study. No part of this report has





Designation

School


Phagwara, Punjab.

Date:

CERTIFICATE

This is to certify that Vrinda Sethi bearing Registration no. 3020070038 has









Designation

School


Phagwara, Punjab.

Date:

DECLARATION

I, Deepee Danwra, student of Master of Business Administration under

Department of Management of Lovely Professional University, Punjab, hereby

declare that all the information furnished in this capstone project report is based on

my own intensive research and is genuine.

This report does not, to the best of my knowledge, contain part of my work which

has been submitted for the award of my degree either of this university or any other

university without proper citation.

Date : Deepee Danwra

Reg no. 3020070013

DECLARATION

I, Isha Sachar, student of Master of Business Administration under Department of

Management of Lovely Professional University, Punjab, hereby declare that all the

information furnished in this capstone project report is based on my own intensive

research and is genuine.




Date : Isha Sachar

Reg no. 3020070222

DECLARATION

I,Tappin Sood, student of Master of Business Administration under Department of







Date : Tappin Sood

Reg no. 3020070050

DECLARATION

I, Vrinda Sethi, student of Master of Business Administration under Department of







Date : Vrinda Sethi

Reg no. 3020070038

ACKNOWLEDGEMENT

We deem it a great privilege to thank all those people who helped us to complete this

project work. We express our sincere thanks to the management of the LOVELY

PROFESSIONAL UNIVERSITY.

We are deeply obliged to our project mentor Ms. Ridhi Arora, without whose guidance

and encouragement at all levels, the study wouldn‟t have been completed. Also, we do

thank and remember my family and friends for their effort and helping hand.

We express our profound thanks to our project guide for giving us valuable advice and

guidance and sparing valuable time in clarifying various points raised by us.

Every effort has been made to enhance the quality of work. However, we owe the sole

responsibility of the shortcoming, if any, in the study

ISHA SACHAR

DEEPEE DANWRA

TAPPIN SOOD

VRINDA SETHI

TABLE OF CONTENT

Serial

number

Topic Page number

1. Abstract 1

2. Significance of the study 2

3. Scope of the study 3

4. CHAPTER 1: Introduction

1.1: HRD Climate

1.2:Need for HRD

1.3:Components of HRD Climate

1.4:Measuring HRD Climate

1.5:Employee Engagement

1.6: Relationship of employee engagement with other

dimensions

1.7: A framework of employee engagement

1.8: Relationship between HRD climate and employee

Engagement

4-6

6-7

8-9

10

11-13

13-15

15-16

17-18

5. CHAPTER 2: Review of Literature 19-28

6. CHAPTER 3: Research Methodology

3.1:Objective of the study

3.2:Hypothesis

3.3:Data Collection

3.4:Sample Size

3.5:Sampling Technique

3.6:Data Analysis

29

29

29-30

30

30

30

7. CHAPTER4:Analysis and Interpretation 31-35

8. CHAPTER5:Findings 36-38

9. CHAPTER6:Conclusion 39-40

10. CHAPTER7:Limitations of the study 41

11. CHAPTER8:Suggestions 42

12. References 43-46

13. Appendices

ABSTRACT:

In today‟s world of cut throat competition, it has become very much vital for organizations to

nurture, develop and engage their talent in the best manner. Employee engagement can be

defined as the degree to which a person is emotionally attached with the organization. Employee

engagement is strongly related to business outcomes. Greater the employee engagement; greater

is the productivity of the organization. Hence, management consultants and practitioners are

putting immense efforts to enhance the employee engagement among their employees. Also, a

relationship exist between HRD Climate and Job satisfaction, organizational commitment and

many other factors which ultimately results in engagement of employees in their work. The

purpose of the study was to measure the relationship between HRD Climate and Employee

engagement among service sector Employees. To conduct this study data was obtained through

the administration of questionnaires among the service sector employees of the organizations

located in the region of Jalandhar. After the data collection analysis was done by using statistical

tool of Pearson correlation analysis to get the findings of the study. The various dimensions of

HRD Climate as given by T.V.Rao was observed individually and it showed that there exists a

positive correlation between employee engagement and HRD climate of service sector

employees. The study will be helpful in enhancing employee engagement among service sector

employees and understanding about HRD climate of the organizations. Moreover, it will add

value in managing the productivity level, employee absenteeism and turnover in the

organizations.

SIGNIFICANCE OF THE STUDY:

In recent years, HRD has been focusing on ways in which organizations can have a environment

where employees would be involved or engaged in their work .It has been theorized that

systematic approaches to such activities are tied to corporate performance and survival and

therefore of value. Related discussions have established how HRD climate could be helpful in

developing employee engagement and how it is critical to ongoing organizational success and as

a key contribution from the field of HRD. Therefore, additional insight into how organizations

can create and improve workplace environments, as well as recognition of the potential impacts

of such environments on employees, is crucial for practice, research, and theory building. Such

employee attitudes include satisfaction, motivation, and retention as they relate to overall

working. Despite these related findings, no available studies have explored relationship between

two. A better understanding of this relationship will contribute to theory and practice in HRD

and provide further insight into the influence of organizational learning culture on employee

engagement with different factors i.e. productivity, absenteeism and performance of employees.

SCOPE OF THE STUDY:

Employee engagement has become the topmost challenge for the majority of the organizations of

the world. Past research studies indicate the influence of HRD climate on the job satisfaction and

performance of employees working in the organizations. Still there is significant room for

research to be conducted in Indian context to demonstrate the relationship between employee

engagement and HRD climate. The purpose of the study was to investigate the relationship

between employee engagement and HRD climate. The scope of the study was restricted to the

region of Jalandhar city and the data collection was done through administration of

questionnaires among the service sector employees by targeting 3-4 organizations located in the

region of Jalandhar.

CHAPTER 1 : INTRODUCTION

1.1 HRD Climate -

If we need to find a way to develop employees in order to become effective contributors to the

goals of an organization, we need to have a clear view of what an effective contribution would

look like. The use of personal capacities can be very helpful in describing the way in which an

effective employee should operate and behave, but there can be no general prescription of an

effective employee. Effectiveness will differ with organizational context, and on whose

perspective we are adopting. The matter of what, finally, makes an effective employee is a

combination of personality, natural capabilities, developed skills, experience and learning. The

process of enhancing an employee‟s present and future effectiveness is called development.

Meaning of HRD Climate

HRD is mainly concerned with developing the skill, knowledge and competencies of people and

it is people-oriented concept. When we call it as a people-oriented concept the question of people

being developed in the larger or national context or in the smaller organizational context? Is it

different at the macro and micro level? HRD can be applied both for the national level and

organizational level.

But many personnel managers and organizations view HRD as synonymous to training and

development. Many organizations in the country renamed their training departments as HRD

departments. Surprisingly some organizations renamed their personnel department as HRD

departments. Some educational, institutions started awarding degrees and diplomas in HRD even

though the concept is not yet crystal clear.

HRD from organizational point of view is a process in which the employees of an organization

are helped/motivated to acquire and develop technical, managerial and behavioral knowledge,

skills and abilities, and mould the values, beliefs, attitude necessary to perform present and

future roles by realizing highest human potential with a view to contribute positively to the

organizational, group, individual and social goals.

A comparative analysis of these definitions shows that the third definition seems to be

comprehensive and elaborate as it deals with the developmental aspects of all the components of

human resources. Further, it deals with all types of skills, the present and future organizational

needs and aspect of contribution to not only organizational also other goals.

The analysis of the third definition further shows that there are three aspects, viz.,

1. Employees of an organization are helped/motivated;

2. Acquire, develop and mould various aspects of human resources; and

3. Contribute to the organizational, group, individual and social goals.

The first aspect deals with helping and motivating factors for HRD.These factors may be called

as Enabling factors which include Organization structure, organizational climate, HRD climate,

HRD knowledge and skills to managers, human resource planning, recruitment and selection.

The second aspect deals with the techniques or methods which are the means to acquire develop

and mould the various human resources.These techniques include: Performance, appraisal,

Potential appraisal, Career planning and Development, Training, Management development,

Organizational development, Social and Cultural programs, and Workers participation in

management and quality circles.

The third category includes the outcomes contribution of the HRD process to the goals of the

organization, group, individuals and the society.

HR means employees in organization, who work to increase the profit for organization, it is

acquisition of capabilities that are needed to do the present job, or the future expected job.

After analyzing Human Resource and Development we can simply state that, HRD is the process

of helping people to acquire competencies.

Climate, this is an overall feeling that is conveyed by the physical layout, the way employees

interact and the way members of the organization conduct themselves with outsiders. (It is

provided by an organization.)

An organization became dynamic and growth oriented if their people are dynamic and pro-

active. Through proper selection of people and by nurturing their dynamism and other

competencies an organization can make their people dynamic and pro-active. To survive it is

very essential for an organization to adopt the change in the environment and also continuously

prepare their employees to meet the challenges; this will have a positive impact on the

organization.

1.2 Need for HRD

Top to Bottom Effort: - Organization is considered to be complete organization after including

top authority to bottom line of workers and whenever we talk about development organizational

level effort is needed from top level to bottom level. Top authority should not have thinking in

their mind that their task is to only take decisions but they should also emphasized on proper

implementation of decision by adopting various controlling technique. Bottom level workers

should have loyal mind-set towards their organization. Bottom level workers have to work with

dedication. They should have realisation that organization is their organization.

Motivator role of Manager and Supervisor:- To prepare Human Resource Development

Climate, Manager and Supervisor‟s responsibilities are more or we can say that they are the key

players. Manager and Supervisors have to help the employees to develop the competencies in the

employees. To help the employees at lower level they need to updated properly and they need to

share their expertise and experience with employees.

Faith upon employees:- In the process of developing HRD Climate employer should have faith

on his employees capabilities. Means whatever amount is invested that should be based on

development of employees. Top management should trust the employees that after making huge

effort to develop employees, employees will work for the well being of organization and for

human being also.

Free expression of Feelings : - Whatever Top management feels about employees they have to

express to employees and whatever employees think about top management it must be express in

other words we can say that there should not be anything hidden while communication process.

Clear communication process will help to establish the HRD Climate.

Feedback:- Feedback should be taken regularly to know the drawbacks in system. This will help

to gain confidence in employees mind. Employee will trust on management and he can express

his opinion freely which is very good for HRD Climate. Feedback will help to remove the

weakness.

Helpful nature of employees: - Whenever we talk about 100% effort then we have to talk about

employees effort too. Nature of employees should be helping for management and for its

colleagues. They should be always read to help to customers too.

Supportive personnel management: - Personnel policies of organization should motivate

employees to contribute more from their part. Top management‟s philosophy should be clear

towards Human Resource and its well being to encourage the employees.

Encouraging and risk taking experimentation: - Employees should be motivated by giving

them authority to take decision. This concept is risky but gradually it will bring expertise in

employees to handle similar situation in future. It will help to develop confidence in employees

mind. Organisation can utilize and develop employees more by assigning risky task.

Discouraging stereotypes and favouritism: - Management need to avoid those practices which

lead to favouritism. Management and Managers need to give equal importance. Those people

who are performing good they need to appreciated and those who are not performing good they

need to be guided. Any kind of partial behaviour should be avoided.

Team Spirit:- There must be feeling of belongingness among the employees, and also

willingness to work as a team.

1.3 Components of HRD Climate

The HRD climate consists of:-

1. HRD Mechanism:

HRD Mechanism of any organization includes the basic human resource activities which are

carried on in any organization to make the employees and the work more effective. These

activities includes Counseling ,Coaching ,Training & development ,Performance appraisal

,Potential appraisal ,Career planning and development and Organizational development . These

mechanisms motivate the employee to make the work more effective and in an efficient way.

2. General Climate:

General Climate of any organization means the environment which is being provided to the

employees. This climate actually affects the working of employees. The climate if provided good

to the employees gives positive output as in such type of organization the employees are highly

engaged. The general Climate includes reporting relationship, the policies, the belief and other

activity.

3. OCTAPAC Culture:

The OCTAPAC Culture of organization includes openness, confrontation,trust,authenticity,pro-

activity,autonomy and collaboration.

Openess: means a culture where Employees feel free to express their ideas & the organization is

willing to take risks & experiment with new ideas & new ways of doing things. The degree of

openness of the organization is an important factor in determining the nature of various

dimensions of HRD being designed.

Confrontation (A bold challenge) : means that employees faces the problems & work jointly with

others concerned to find its solution. They face the issues squarely without hiding them or

avoiding them for fear of hurting each other.

Trust : A minimum level of trust may be deemed necessary for the introduction of the

performance appraisal system and other elements of HRD. Employees department & groups trust

each other & can be relied (trust) upon to „do‟ whatever they say they will.

Authenticity: Authenticity is the value underlying trust. It is the willingness of a person to

acknowledge the feelings he/she has, and accept himself/herself as well as others who relate to

him/her as persons.

Pro-activity (actively thinking in advance) : Employees are action – oriented, willing to take

initiative & show a high degree of Pro-activity. They anticipate issues and act or respond to the

needs of the future.

Autonomy: Autonomy is the willingness to use power without fear, and helping others to do the

same. Employees have some freedom to act independently within the boundaries imposed by

their role/job.

Collaboration: Collaboration involves working together and using one another‟s strength for a

common cause. Individuals, instead of solving their problems by themselves, share their

concerns with one another & prepare strategies, work out plans of action, & implement them

together.

1.4 Measuring HRD Climate

Economic condition – An organisation‟s economic condition influences its culture in several

ways. The more prosperous an organisation is the more it can afford to spend on research and the

more it can afford to risk and be adventurous.

Leadership Style - An organisation leadership style plays a profound role in determining several

aspects of its culture. An authoritarian style may make the organisation‟s culture characterized

by high position structure, low individual autonomy, low reward orientation, low warmth and

support and so on, or it may be opposite, like goal directed leadership.

Managerial assumption about human nature : -Every act on the part of the management that

involves human beings is predicated upon assumptions, generalizations and hypotheses relating

to human behaviour. There are two theories of behaviour (Theory X and Theory Y).

Managerial values and ethos :The feeling of managers about norms and values what is good

and what is poor as management practice. There are few dimensions on which it can be checked.

They are – self-awareness, risk-taking, participation, bureaucracy, equity, employee‟s security

and growth.

Organisation size : - An small organizations there are few levels of management, these are

generally more amenable to democratic and participative functioning than big organisations.

There exist an open communication system in small organisations. Hence these organisations

have a different type of climate than what are in big organizations.

1.5 Employee Engagement

Employee Engagement is a barometer measuring the association of the person in the

organization. The degree of Employee Engagement affects an individual‟s physical and mental

health. Since Employee Engagement is a type of mental feeling, its favorableness or

unfavourableness affects the individual psychologically which ultimately affects his physical

health. Employee Engagement has a variety of effect including an individual‟s physical and

mental health, productivity, absenteeism, and turnover. It can be seen as a combination of

commitment to the organization and its values plus a willingness to help out colleagues

(organizational citizenship).Employers today are using many methods to analyze the engagement

of employees(survey, feedback, performance appraisal etc.). Engagement is not about driving

employees to work harder, but about providing the conditions under which they will work more

effectively – or in other words, it is about releasing employees‟ discretionary behavior. This is

more likely to result from a healthy work life balance than from working long hours.

Engagement can be said to have three dimensions:

Emotional engagement - being very involved emotionally with one‟s work

Cognitive engagement - focusing very hard whilst at work

Physical engagement - being willing to „go the extra mile‟ for your employer

Different groups of employees are influenced by different combinations of factors, and managers

need to consider carefully what is most important to their own staff. Adopting an effective

engagement strategy can provide an opportunity for HR practitioners to acquire new skills and

work alongside professionals in other parts of the business, including those responsible for

marketing and corporate social responsibility. In order to engage their employees employers

should consider following things:

Allowing people the opportunity to feed their views and opinions upwards is the single

most important driver of engagement

keeping employees informed about what is going on in the organisation is critical

employees need to see that managers are committed to the organisation in order to feel

engaged

Having fair and just management processes for dealing with problems is important in

driving up levels of performance.

Engaged employees are more likely to act as organizational advocates than disengaged

employees and can play a powerful role in promoting their organization as an employer of

choice. Research confirms however that there is a significant gap between levels of engagement

found among employees and those that would produce optimum performance. HR professionals

need to recognize that engagement is a strategic issue that cannot simply be left to manage itself.

Organizations should review their communications and particularly their arrangements for

listening to employee opinions. Line managers need support in designing challenging jobs and

managing effective teams.

Numerous definitions of engagement can be derived from the practice- and research driven

literatures. Additional definitions can be attributed to folk theory: the common intuitive sense

that people, and particularly leaders within organizations, have about work motivation. Common

to these definitions is the notion that employee engagement is a desirable condition, has an

organizational purpose, and connotes involvement, commitment, passion, enthusiasm, focused

effort, and energy, so it has both attitudinal and behavioral components. The antecedents of such

attitudes and behaviors are located in conditions under which people work, and the consequences

are thought to be of value to organizational effectiveness. As a folk theory, engagement is used

in a manner that implies the opposite of disengagement.

For example, a number of popular views of engagement suggest that engaged employees not

only contribute more but also are more loyal and therefore less likely to voluntarily leave the

organization.

However, for present purposes, we choose to focus on only those aspects of engagement that

have positive valence (obviously from low to high). We believe that this is crucial to developing

conceptual precision in that it maintains a clear intentional focus on benefits that inure to the

organization. For example, certain behaviors that might be considered adaptive on the part of the

individual (e.g., taking a „„mental health day‟‟ as a form of adaptive withdrawal) would not be

considered within the present framework. At least temporarily, we are not taking a position on

whether engagement and disengagement are opposites (i.e., perhaps the opposite of engagement

is „„non engagement‟‟ rather than disengagement or perhaps even burnout; Gonzalez-Roma,

Schaufeli, Bakker, & Lloret, 2006). Rather, we simply choose to arbitrarily exclude from

consideration models of behavior that focus on withdrawal, maladaptive behavior, or other

disengagement phenomena.

1.6 Relationship of Engagement with various Dimensions

Engagement as satisfaction:

To some, engagement and satisfaction are linked directly if not regarded as completely

isomorphic. Thus, Harter et al. explicitly referred to their measure as „„satisfaction-engagement‟‟

and defined engagement as „„the individual‟s involvement and satisfaction with as well as

enthusiasm for work‟‟.

Engagement as commitment:

Some practitioners define engagement in terms of organizational commitment. For example,

Wellins and Concelman suggested that „„to be engaged is to be actively committed, as to a

cause.‟‟ The Corporate engagement when it is conceptualized as positive attachment to the larger

organizational entity and measured as a willingness to exert energy in support of the

organization, to feel pride as an organizational member, and to have personal identification with

the organization.

Engagement as job involvement:

At a casual level, job involvement as a construct clearly occupies a portion of the conceptual

space labelled state engagement. Indeed, as indicated earlier, Harter et al. specifically equated

engagement with both satisfaction and involvement. Similarly, building on the work of Lodahl

and Kejner, Cooper-Hakim and Viswesvaran defined job involvement „„as the degree to which

an employee psychologically relates to his or her job and the work performed therein‟‟ and

specifically equated job involvement and job commitment. Similarly, in his review and meta-

analysis of job involvement, Brown indicated that a „„state of involvement implies a positive and

relatively complete state of engagement of core aspects of the self in the job‟‟.

Engagement as psychological empowerment:

Psychological empowerment has been treated within both two- and four dimensional framework.

Within the two-dimensional framework, Mathieu et al. Suggested that empowerment is the

„„experience of authority and responsibility.‟‟ Conceptually, empowerment defined in this

manner might be considered an antecedent or a condition of engagement, and the reader can see

the conceptual slipperiness with which we are dealing. Indeed, any distinction between the state

of engagement and psychological empowerment becomes considerably less clear when

considering the four-dimensional model suggested by Spreitzer. These dimensions include

meaning (sense of purpose), competence (self-efficacy), feelings of self determination (feelings

of control), and impact (belief that one‟s efforts can make a difference). These connote a

readiness and/or an inclination toward action that fits our perspective of state engagement as

energetic.

Engagement as Positive Affectivity:

Engagement has been regarded by some as a distinct affective state. Larsen and Diener

positioned PA as halfway between (45 degrees to) the positive end of the activation dimension

and the pleasant end of the hedonic valence dimension, thus characterizing .PA as „„activated

pleasant affect‟‟ characterized by adjectives that connote both activation and pleasantness. This

distinction between PA with its high activation component and pleasantness, which is neutral

with respect to activation level, is similar to the one we made earlier when discussing satisfaction

and its relationship to engagement.

Although there is considerable ongoing debate regarding the primary dimensionality of affect,

our concern here is with regard to the descriptors (markers) used to characterize PA. PA markers

for the Positive and Negative Affect Schedule (PANAS) include among others attentive, alert,

enthusiastic, inspired, proud, determined, strong, and active, precisely the kinds of descriptors

occasionally explicitly but more often implicitly used in contemporary engagement definitions.

In keeping with Staw, Larsen and Diener, Warr, and others, these markers of PA connote high

levels of activation. This is consistent with the practitioner literature. For example, within the

popular management press, this is referred to as passion and excitement or simply emotional

engagement.

PA is variously used to describe mood states, more temporary and intense emotional states, and

as a dispositional trait, or the tendency to experience events, circumstances, and situations more

positively, further adding to the potential confusion.

1.7 A Framework for Understanding the Conceptual Space of Employee

Engagement

To move the discussion of what engagement is to a more concrete level, consider the overall

framework for understanding the various components that the engagement

construct might subsume.

Figure shows that engagement as a disposition (i.e., trait engagement) can be regarded as an

inclination or orientation to experience the world from a particular vantage point (e.g., positive

affectivity characterized by feelings of enthusiasm) and that this trait engagement gets reflected

in psychological state engagement. We conceptualize psychological state engagement as an

antecedent of behavioural engagement, which we define in terms of discretionary effort or a

specific form of in-role or extra role effort or behaviour.

Figure also shows that conditions of the workplace have both direct and indirect effects on state

and behavioural engagement. The nature of work (e.g., challenge, variety) and the nature of

leadership (especially transformational leadership) are the conditions that most interest us. Figure

shows, for example, that work has direct effects on state engagement and indirect effects as a

boundary condition (moderator) of the relationship between trait and state engagement.

With regard to leadership, Figure shows it having a direct effect on trust and an indirect effect

through the creation of trust on behavioural engagement; more on Figure later.

Framework for understanding the elements of employee engagement.

1.8 HRD Climate and Employee Engagement

HRD Climate is an integral part of organizational climate. It is the perception the employee can

have on the development environment of an organization. HRD from organizational point of

view is a process in which the employees of an organization are helped/motivated to acquire and

develop technical, managerial and behavioural knowledge, skills and abilities, and mould the

values, beliefs, attitude necessary to perform present and future roles by realizing highest human

potential with a view to contribute positively to the organizational, group, individual and social

goals.In order to analyze the HRD climate ,organization adopts following measures which

includes economic analysis ,leadership styles , organizational size, managerial values and ethos

and the skills of human resource .HRD climate is very much related with the communication

pattern in the organization. If there is a good communication style in the organization there

would definitely be a good culture to work on. HRD begins with the function of HRP i.e. human

resource planning. HRP is an integral part of HRD as it acts a bridge between HRD and other

functions of organisation including employee engagement activities of strategies. There exist a

positive relationship between employee engagement and HRD climate of the organisation.

Employee Engagement is a barometer measuring the association of the person in the

organization. The degree of Employee Engagement affects an individual‟s physical and mental

health. Since Employee Engagement is a type of mental feeling, its favorableness or

unfavourableness affects the individual psychologically which ultimately affects his physical

health. Employee Engagement has a variety of effect including an individual‟s physical and

mental health, productivity, absenteeism, and turnover. It can be seen as a combination of

commitment to the organization and its values plus a willingness to help out colleagues

(organizational citizenship).Employers today are using many methods to analyze the engagement

of employees(survey, feedback, performance appraisal etc.).

There is a linkage between HRD climate and employee engagement, If the climate of the

organization is good then employees tends to work more vigorously and with more energy.

Employee Engagement include Dedication towards work, interest ,involvement , vigorous and

commitment . Organization‟s today are providing the climate of less hierarchy, openness,

Confrontation, trust ,flexibility and empowerment which in turn not only helping the employees

to work efficiently and also developing them in reaping their career opportunities but also

benefiting the organization in dealing with the cut throat competition by making their employees

as a competitive edge over their competetitors.

Thus, those organization who are now successful are because of the loyalty and dedication of

employees due to the strong HRD climate which motivate employees to be engaged and

committed more with the organization. By analysing different researches and papers we came to

know that HRD climate and employee satisfaction, organization commitment goes hand in hand

and thus to turn a satisfied and committed employee into an engaged employee there is a need of

further study analyzing different factors of HRD climate and their relationship with overall

employee engagement.

CHAPTER-2

REVIEW OF LITERATURE

Nadler, (1970) stated that the purpose of HRD could also be seen from the perspective of the

activities or key functions in HRD. The main key functions of HRD are individual development,

organizational development, and career development and performance improvement. So HRD

could be beneficial for the organization performance and work engagement of employees

McLagan, (1983).

Paul (1974) states that research is focusing on inter-organizational and intra-organizational

behavior leads one to focus on aspects of organizations that are often over-looked when focusing

solely on behavior "within" the organization. Comparison of the situation occurring in the two

contexts, gives additional insights into the constraints that shape the social psychology of the

organizations. It is being said that HRD climate differs from organization to organization, from

production centered organizations to service centered organizations; from regional corporations

to national corporations; from national corporations to multi-national corporations and from

government organizations to non-government organizations. This study also attempts to assess

the perceived HRD climate and engagement scores across three categories of organizations and

among three levels of functions in these organizations. This is done by understanding HRD

climate differs according to the organizations and levels of functioning in these organizations.

Hellriegel &Slocum (1974), James & Jones (1974) in their study is studying about the essence of

HRD climate in relation to the outcome of HRD - that is employee engagement .It reveals three

major approaches toward measuring climate in the organizations. The first approach treats

climate as an attribute or set of attributes belonging to an organization. The second approach

treats climate as an interaction of an organization‟s characteristics and the individual's

perceptions of those characteristics. This is called perceptual measurement of organizational

attribute. The third approach to measuring climate in the organizations is termed as the

perceptual measurement-individual attribute approach.

Krishna & Rao, (1977) surveyed the organizational and HRD climate of one of the largest

engineering and manufacturing enterprises in India BHEL which shows that environment of

openness follow well among middle and senior managers in the company. This Type of climate

is important for working of the organizations as it results in effective and positive outcomes in

the organization.

Eisenberger, Fasolo and Davis-LaMastro (1990) found that increased performance and positive

work attitudes came from those employees who perceived that the HR department is concerned

about them. From a practical point of view, this suggests that Job satisfaction can be an

important barometer of HRM effectiveness. Moreover it depicts that How HRD climate is

important for any organization and how this could be improved so as to have much better results.

The impact of HRD practices on organizational level outcomes has gained importance as a

research issue. Jain, Singhal and Singh (1997) had shown encouraging results, that there exists a

significant and positive relationship between HRD climate, organizational effectiveness and

productivity. The researchers conducted studies to know the influence of the HRD climate on the

individual's attitudes and behaviors.

Rohmetra (1998) founded there exists a positive relationship between developmental climate and

the level of satisfaction of the employees. As per the study of Kumar and Pataki (2002) HRD

Climate had a positive association with job satisfaction, which gives a view that the job

satisfaction is a resultant of favorable HR practices. Frederickson (1966) Lafollette & Sims 1975

founded more consultative, open, employee-oriented employees generally result in more positive

job attitudes.

Rohmetra, (1998) conducted study on banking sector of J & K space for determining the HRD

climate and the attitudinal perceptions of 102 employees covering senior, middle and lower

managerial levels and the clerical staff. The study shows that the environment is less open for

employees. This less open environment is somewhere hampering the working in the

organization.

Pattanayak (1998) in his research on HRD climate stated that climate affects performance in

three ways:

* By defining the stimuli that confronts the individual

* placing constraints on the individual's freedom of choice

* providing sources of reward and punishment.

If there would be positive Climate then the performance of the employees would definitely

improve and this would be beneficial for the organization.

McCashland (1999) defined EE as „commitment or engagement - an emotional outcome to the

employee resulting from the critical components of the workplace. Miles described it as

intensively involving all employees in high-engagement cascades that create understanding,

dialogue, feedback and accountability, empower people to creatively align their subunits, teams

and individual jobs with the major transformation of the whole enterprise (Miles, 2001)

Notably Goddard, (1999) describe engagement with the organization and engagement with the

task as associated with time use. Engagement is defined as „being physically and /or mentally

present, and supporting the goals of the organization. Disengagement from the organization

denotes not being present or not focused on the goals of the organization. Engagement with the

task means one is present and focused on the immediate task, issue, or problem relating to the

organization. Disengagement from task is defined as either not present or not focused on the

task, issue or problem relating to the organization. Goddard discusses the theoretical implications

of complex relationships between time and engagement as the locus of an individual‟s use of

time along the axes of engagement/disengagement from organization and task.

Alphonsa, (2000) surveyed HRD climate in private hospital of Hyderabad with sample of 50

supervisors from different departments participated in present study. The study highlighted that

the supervisors perception about the HRD climate is satisfactory and there exists reasonably,

good climate with respect to top management‟s belief in HRD climate.

Hatcher (2000) argued in his study that the purposes of HRD are centered on economic benefits,

social benefits and the ethics of HRD. These points indirectly suggest that a reconciliation of the

purposes of HRD centrally focus on training, development and learning within organizations for

individual development to achieve business strategies and for the development of organizational

competence.

Bhardwaj, and Mishra (2002), conducted a study with a sample of 107 senior, middle and lower

level managers of private sector organization. The study was conducted to understand the

existence of good HRD climate in the organization. The managers in general showed a favorable

attitude towards HRD policies and practices of the organization. They were satisfied with the

developmental policies of top management as well as happy with the prevailing HRD climate in

the organization and it was thus observed good HRD climate is essential for an organization.

Mufeed and Rao (2003), stated about the importance of HRD in developing strategies for both

managerial and non-managerial staff to combat with an ever increasing competitiveness besides

maintaining a high level of efficiency and productivity in their work force. A slight carelessness

in managing manpower makes them less productive first, then zero productive and then

counterproductive asset, by being capable of instigation others also not to work or produce.

Thus, a careless handling turns the performing human resource or asset into a non-performing

asset first and a “counter productive” liability latter.

Mufeed (2005) in his empirical study of the HRD climate in Hospitals found that the value of

authenticity had been well developed and signified Cohesion and trust in employees their

personal relationship.

Mufeed (2006) has conducted a study in major hospitals of the Jammu and Kashmir namely

Shri-Kashmir Institute of Medical Sciences (SKIMS) about perception of medical staff towards

HRD climate in the said hospital. The result of the study showed that the existing HRD climate

in the hospitals to a large extent is significantly poor. The study also showed that HRD in

organization uses various instruments like performance appraisal system, training, promotion,

rewards, organizational development and counseling etc., to create a climate conducive to

achieve organizational efficiency and effectiveness.

Rex D Foster (2006), in his research has stated about the importance of HRD climate in

innovation. In his study he stated that creativity plays an important role in innovation and

enabling motivation could be there through good climate in the oraganisation.HRD include

building human capacity, and developing organizational environments that are conducive to

innovation.

Koyuncu, M., Burke, R.J. & Fiksenbaum, L. (2006), this research examined potential

antecedents and consequences of work engagement in a sample of women managers and

professionals employed by a large Turkish bank. .Data was collected from 286 women, a

seventy-two percent response rate, using anonymously completed questionnaires. Engagement

was assessed by three scales developed by Schaufeli, Salanova, Gonzalez-Roma, and Bakker

(2002); Vigor, Dedication and Absorption. Antecedents included personal demographic and

work situation characteristics as well as work life experiences; consequences included measures

of work satisfaction and psychological well-being. The following results were observed. First,

worklife experiences, particularly, Control, Rewards and Recognition and Value fit, were found

to predict all three engagement measures. Second, engagement, particularly Dedication,

predicted various work outcomes (e.g., job satisfaction, intent to quit). Third, Engagement,

particularly vigor, predicted various psychological well-being outcomes. Questions of causality

cannot be addressed since data were collected at only one point in time. Longitudinal studies are

needed to determine the effects of work life experiences on engagement. Implications –

Organizations can increase levels of work engagement by creating work experiences (e.g.,

control, rewards and recognition) consistent with effective human resource management

practices.

Melissa Peters (2007) stated that employee engagement is an emotional connection that

employee has for his work, his peers and his organization. How this relation affects his work.

Employee (public sector) who is positively engaged with their work can be easily translated into

increased citizen trust. It is focusing on good employees and understanding what and how

employee wants to do. Employees should be motivated by using strategies as motivation leads to

higher job satisfaction and less turnover intentions.

Pooja Purang (2007) in a Comparative Analysis of HRD Climate in Public Private and

Multinational Organizations concluded that the Employee perceptions regarding the HRD

Climate are significantly better in the private sector and MNC in comparison to the Public Sector

Organization.

P.B.S. kumar (2007) described in his study about the differences between HRD & personnel

management. In this he has explained that there is a significant difference between the both &

had given around 27points that differentiates both. Also, he has given some models related to

HRD and personnel management so as to help managers clearly understand the difference

between the both.

Andreassen,C. S, Ursin, H. & Eriksen,H.R. (2007) ,examined following things in their study (1)

psychometric properties of Spence and Robbins' measures of the components of workaholism

and (2) relations between workaholism and health-related outcomes [job stress, burnout, work

engagement, and subjective health complaints (SHC)]. Two hundred and thirty-five bank

employees completed questionnaires measuring workaholism, job stress, burnout, work

engagement, and SHC. Factor analyses suggested a two-factor model of workaholism, "Drive"

and "Enjoyment of Work". There were significant relations between workaholism subscales and

SHC, job stress, burnout, and work engagement. The "Drive" subscale correlated positively with

job stress and SHC, and marginally with burnout and work engagement. The "Enjoyment of

Work" subscale correlated negatively with job stress, burnout, and SHC. The results showed that

a two-factor model of workaholism provided the best fit for Norwegian data, supported a

differentiation of enthusiastic and no enthusiastic workaholic features, and were related in

predictable ways to SHC, burnout, and work engagement, as predicted from contemporary

cognitive stress theory.

Nit in Varian (2007) described employee engagement as an attitude that employee carries within

himself for the organization. Employee management is categorized in following terms: engaged

employees, actively disengaged employees and not engaged employees. Research also includes

factors affecting employee engagement which is comprising of effective talent management,

opportunities for personal development, clarity of company goals, respectful treatment of

employees, fair treatment and many others. Apart from this it is stated employee engagement is

also affected effective communication in the organization. An employee should be given most

importance in the organization as they act as competitive edge of the company.

Cross (2008) explained employee engagement has become an important aspect of conducting

business for corporations, and many corporations are now restructuring their motivation and

engagement strategies in order to remain viable and competitive in response to social,

demographical, generational, and environmental changes and demands.

Kular, et al. (2008) stated that there are more employees who are disengaged or not engaged than

there are engaged employees. During this research they examined that there may be a clear link

between engagement, employee performance and business outcomes. The research depicted

three major areas including conceptualization of employee engagement; individual differences

(on the basis of gender, groups and region) affect employee engagement and employee

involvement related to employee engagement. This research is summarizing that there is no

agreed single definition for employee engagement, different people are being affected by

different factors around them in engagement of their work and last, personal relationships affect

the working behavior and engagement of employees in their work.

Alarcon, G.M. (2009), in his research stated about the recent developments in organizational

attitude and has focused on the concept of engagement. Despite the growing literature on

engagement there is little agreement on the conceptualization of engagement. The current study

sought to conceptualize and measure work engagement using Item Response Theory. The Wright

Work Engagement Scale was created using two samples, a student sample for exploratory

analyses and a working sample for item analyses. Results indicate engagement is a one-

dimensional construct. The 12 item Work Engagement Scale was created and demonstrated

sufficient convergent and discriminate validity.

Kühnel, J., Sonnentag, S., & Westman, M. (2009), the study extended their research on work

engagement by examining how a short respite and general job involvement contribute to work

engagement. We gathered questionnaire data from 156 nurses before and after a short respite.

Results indicated an increase of work engagement after the respite. Structural equation modelling

showed that nurses who experienced psychological detachment from work during the respite

showed a higher increase of work engagement. Moreover, nurses who indicated higher job

involvement also showed a higher increase of work engagement. Contradictory to this direct

positive effect job involvement had on change in work engagement; job involvement exerted a

negative indirect effect on change in work engagement by impaired psychological detachment

during the respite. Hence, job involvement acted as a double-edged sword for the increase of

work engagement. Practical implications for the organization of short respites and suggestions

for future research on recovery processes are discussed.

Zigarmi et al. (2009) explained engagement should and does stand alone as an independent

variable from organizational commitment or job commitment. Work engagement contributes to

the field of positive work psychology beyond the already existing constructs of organizational

commitment or job commitment. HRD practitioners must recognize that an employee passion

initiative is systemic and therefore requires a long-term investment to gain a well-earned

outcome.

Attridge, M. (2009). Reviewed that high levels of work engagement are when employees are

involved with, committed to, enthusiastic, and passionate about their work. This article provides

a review of the literature on employee engagement, based on studies from academic and business

sources. Areas of focus include defining the concept of employee work engagement, how it is

measured, how often it occurs, the costs of disengagement, the business benefits linked to

positive engagement, and how workplaces can be changed to encourage engagement. The

findings indicate that work engagement can be improved through adopting certain workplace

behavioural health practices that address supervisory communication, job design, resource

support, working conditions, corporate culture, and leadership style. Also featured are several

case studies from employers who measure and use employee engagement data to improve their

work culture, retain employees, and increase business financial success. Implications for

improving the service of employee assistance and behavioural health providers are discussed.

Febriansyah (2010) explained how giving a special treatment for employees in order to develop

competences and engagement are still significant problem in human resources management in

the developing countries. To counter those problems, researchers and practices have been

implementing human capital and employee engagement approach. This paper elaborated the

employee engagement factors. He shared 1274 questionnaires as primary data in which

respondents are management and operational staffs. Moreover, he used quantitative method in

factor analysis, to analyze all the information. The findings are employee engagement can be

endorsed by current career intention, equal opportunity and fair treatment, and communication.

Further from this research, he offered a platform to develop strategies in employee engagement.

Saraswathi (2010) stated an organization that has better HRD climate and processes is likely to

be more effective than an organization that does not have them. The present study is an attempt

to contribute to a better understanding of the HRD climate prevailing in software and

manufacturing organizations and to make a comparative analysis to understand whether they

have same degree of HRD climate or not. For organizational and employees performance it is

important to focus on various aspects of the HRD climate prevalent in the organization.

Solkhe and Choudhary (2011) proposed human resource being the most vital factor of

production and labor productivity, a positive, forward looking, HRD policy is a sine-qua-non for

the efficiency and effectiveness of public sector employees. The success of HRD in any

organization depends, to a large extent, on the existence of a favorable HRD Climate.HRD is

more personnel-oriented than technology-oriented and believes that participation and

communication would bring about greater commitment, efficiency, and growth of individuals.

Harris et al. (2011) focused on innovative workplace initiatives by different organizations

identifying strategies which can boost the morale of the employees. This project analyzed HRD

climate, organization culture and leadership/motivation styles help in development of employee

engagement in any organization. This project enhanced the communication skills of

participating. This research depicted that after the project employees had an increment in their

productivity and their involvement in work. Moreover, they added that the project actually

helped the manager, it was easy to delegate the authority and also there were less of industrial

disputes.

CHAPTER 3: RESEARCH METHODOLOGY

To fulfill the research objective, following research methodology will be used:

3.1 Objective of the study:

The study fulfilled the following objective;

To study the relationship between HRD climate and employee engagement among the service

sector employees.

3.2 Hypotheses:

On the basis of above objective following hypotheses were framed:

H1: There exists significant relationship between HRD climate and employee engagement

among service sector employees.

H2: There exists significant relationship between HRD mechanism and employee engagement


H3: There exists significant relationship between General Climate and employee engagement


H4: There exists significant relationship between OCTAPAC culture and employee engagement


3.3 Data collection

The aim of the present investigation was to study the relationship between HRD climate and

employee engagement among service sector organization. The data collection was done through

administration of questionnaires among the employees of service sector in the region of

Jalandhar.

Details of questionnaire:

We have considered two questionnaires that are UWES by Scheffauli and Bakker and HRD

climate by T.V Rao.

UWES is Utrecht Work Engagement Scale which is used to study the level of employee

engagement. The UWES operationalizes this new concept of work engagement by using three

scales: vigor, dedication, and absorption. Dedication, absorption and vigorous. Employee

engagement means that how much an employee is involved in his/her work and how effectively

the work is performed by him/her.

Another questionnaire that is HRD climate by T.V Rao is segregated into General climate,

OCTAPAC culture and HRD mechanism. HRD climate means providing the employees with the

climate of openness, confrontation, values, believes and authenticity. A good HRD climate helps

in motivating the employees and engaging them in their work.

3.4 Sample size:

For data collection a sample of 125 employees has been taken by targeting the above mentioned

organizations of service sector employees.

3.5 Sampling Technique:

Due to lack of time availability in order to collect data for the completion of the project, the

researcher opted for convenience sampling wherein the respondents were chosen as per the

convenience. Convenience sampling is a non-probability sampling technique where subjects are

selected because of their convenient accessibility and proximity to the researcher.

3.6 Data analysis:

After the data was collected through questionnaires analysis was done by using SPSS version 16

& Pearson correlations analysis was utilized as statistical tool for determining the relationship

between HRD climate and employee engagement among the employees of service sector.

CHAPTER 4: ANALYSIS AND INTERPRETATION

We have collected the data from service sector employees of 3-4 organizations within Jalandhar

region. The total data obtained is from 125employees on the whole from all of the above

mentioned organizations. After, obtaining the data we have used SPSS (version16) as statistical

software for analyzing the relationship between HRD climate and employee engagement of

service sector employee and the tool used is Pearson correlation. Correlations are designated by

the lower case letter r, and range in value from -1 to +1. A correlation is often called bivariate

correlation to designate a simple correlation between two variables.

Various types of correlation are as follows:

a. Perfect Positive (r=1) : A correlation is said to be perfect positive when value of r is equal

to1 that means there exist a direct and equal relation between the variables.

b. Positive Correlation(0<r<1): A correlation is said to be positive when value of r is greater

than 0 but less than 1 that means the variables will have direct relationship but the changes

will not vary in equal proportion.

c. Perfect Negative(r= -1): A correlation is said to be perfect negative when value of r is equal

to -1 that means there exist inverse relation between the variables but they will vary equal

proportion in opposite direction i.e. one increases other will decrease equally.

d. Negative Correlation(-1<r<0): A correlation is said to be negative when value of r is

greater than -1 but less than 0 that means the variables will have inverse relationship and the

changes will not vary in equal proportion.

In this we have calculated correlation between:

a. Employee Engagement (ee) and HRD mechanism.

b. Employee Engagement (ee) and General Climate.

c. Employee Enagagement (ee) and OCTAPAC Climate.

d. Employee Engagement (ee) and HRD Climate.

4.1 Evaluation of Hypotheses:

H1: Evaluation of correlation between Employee Engagement and HRD Climate

The hypothesis (H1) is being accepted i.e relationship between employee engagement and HRD

climate.

Descriptive Statistics

Mean Std. Deviation N

Ee 3.7736 1.08797 125

HRDclimate 5.1874 1.19808 125

Correlations

ee HRDclimate

Ee Pearson Correlation 1 .732**

Sig. (2-tailed) .000

N 125 125

HRDclimate Pearson Correlation .732** 1


N 125 125

**. Correlation is significant at the 0.01 level (2-tailed).

TABLE 1

Interpretation: The relationship between Employee Engagement (as measured by the ee scale)

and HRD climate (as measured by the HRD climate score) was investigated using Pearson

product-moment correlation coefficient. Preliminary analyses were performed to ensure no

violation of the assumptions of normality and linearity. There was a strong, positive correlation

between the two variables [r=.732, n=125, p>.05], with high levels of HRD climate associated

with high level of Employee Engagement. Since, the significant value is less than 0.01 i.e. .000,

this depicts impact of HRD culture affects the overall engagement of employees towards their

work and organization in a highly significant way.

H2: Evaluation of Correlation between Employee Engagement and HRD mechanism.

The hypothesis (H2) is being accepted i.e relationship between employee engagement and HRD

mechanism



Ee 3.7736 1.08797 125

HRDmechanism 5.2560 1.22048 125

TABLE 2

Interpretation:

The relationship between Employee Engagement (as measured by the ee scale) and Human

Resource Development mechanism (as measured by the HRD mechanism scale) was

investigated using by Pearson product-moment correlation coefficient. After analyzing the data

using SPSS we observed that there exist a strong, positive correlation between the two variables

[r=.705, n=125, p>.01], with high levels of HRD associated with high level of Employee

Engagement. Since, the significant value is less than 0.01 i.e. .000, this depicts impact of HRD

mechanism affects the overall engagement of employees towards their work and organization in

a highly significant way.

Correlations

Ee HRDmechanism



N 125 125

HRD mechanism Pearson Correlation .705** 1


N 125 125


H3: Evaluation of correlation between Employee Engagement and General Climate

The hypothesis (H3) is being accepted i.e relationship between employee engagement and

General climate.

Correlations

Ee GeneralClimate



N 125 125

GeneralClimate Pearson Correlation .745** 1


N 125 125


TABLE 3


and General climate (as measured by the general climate scale) was investigated using Pearson

product-moment correlation coefficient. Preliminary analyses were performed to ensure no

violation of the assumptions of normality and linearity. There was a strong, positive correlation

between the two variables [r=.745, n=125, p>.01], with high levels of general climate associated

with high level of Employee Engagement. Since, the significant value is less than 0.01 i.e. .000,

this depicts impact of general climate affects the overall engagement of employees towards their

work and organization in a highly significant way.



Ee 3.7736 1.08797 125

GeneralClimate 5.1274 1.18460 125

H4: Evaluation of Employee Engagement and OCTAPAC Culture

The hypothesis (H4) is being accepted i.e relationship between employee engagement and

OCTAPAC culture.

TABLE 4


and Octapac climate (as measured by the OCTAPAC climate scale) was investigated using

Pearson product-moment correlation coefficient. Preliminary analyses were performed to ensure

no violation of the assumptions of normality and linearity. There was a strong, positive

correlation between the two variables [r=.711, n=125, p>.05], with high levels of OCATAPAC

climate associated with high level of Employee Engagement. Since, the significant value is less

than 0.01 i.e. .000, this depicts impact of OCTAPAC culture affects the overall engagement of

employees towards their work and organization in a highly significant way.



Ee 3.7736 1.08797 125

Octapacculture 5.1787 1.24617 125

Correlations

Ee Octapacculture



N 125 125

Octapacculture Pearson Correlation .711** 1


N 125 125


CHAPTER 5: FINDINGS

Employee Engagement:

The employee engagement mean scores of the total sample of 125 are 3.7736 as presented in the

table above. Since the questionnaire used 7 point scale, average mean score of 3 around indicate

a moderate tendency on that dimension, which indicate the existence of a just above average

degree of Employee Engagement.

HRD Climate:

The HRD Climate mean scores of the total sample of 125 is 5.1874 as presented in the table

above. Since the questionnaire used 7 point scale, average mean score of 5 around indicate a

moderate tendency on that dimension, which indicate the existence of a just above average

degree of HRD Climate.

Examining the three major components of HRD Climate i.e. General Climate, HRD Mechanisms

and OCTAPAC Culture the results indicates:

General climate: The general climate mean scores of the total sample of 125 are 5.1274 as

presented in the table above. Since the questionnaire used 7 point scale, average mean score of 5

around indicate a moderate tendency on that dimension, which indicate the existence of a just

above average degree of HRD Climate.

HRD mechanism: The HRD mechanism mean scores of the total sample of 125 are 5.1274 as

presented in the table above. Since the questionnaire used 7 point scale, average mean score of 5

around indicate a moderate tendency on that dimension, which indicate the existence of a just


OCTAPAC climate: The OCTAPAC climate mean scores of the total sample of 125 are 5.1787

as presented in the table above. Since the questionnaire used 7 point scale, average mean score of

5 around indicate a moderate tendency on that dimension, which indicate the existence of a just


Relationship between HRD climate and Employee Engagement

Mean score analysis of HRD climate and Employee Engagement of the organization reveal that a

relationship exists between them. Correlation analysis was carried out to statistically test their

relationship. The result shows that a significant positive correlation of 0.732 exists between

them. Therefore, it supports the hypothesis and makes clear that an improvement in HRD

Climate is essential for improving the level of Employee Engagement of the Employees, which

in turn will bring positive changes in Organizational Performance of the company. Having

observed that a positive correlation exists between the HRD Climate and Employee engagement,

further analysis was conducted to find the relationship between the sub factors or dimensions of

HRD Climate with Employee Engagement. The correlation analysis performed to analyze the

relationship between HRD Climate Dimensions i.e. General Climate, HRD Mechanisms and

OCTAPAC Culture and Employee Engagement. The analysis showed that there exists a positive

relationship between different components of HRD Climate and Employee Engagement. The

correlation coefficient was .745 (EE*General Climate), .705 (EE*HRD Mechanisms) and .711

(EE*OCTAPAC Culture) respectively. This proves that HRD Climate is a

contributing/influencing factor to increase the level of Employee Engagement of the employees.

After the analysis following other findings were also observed:

Most of respondents said that they feel very enthusiastic while working and this is due to the

environment and Climate being provide to them. Respondents always are very energetic

towards their work.

The respondents for the statement “When I get up in the morning, I feel like going to office”

replied yes which shows that they are interested in their work and also they are very much

vigorous for their work. Thus it could be observed that they are highly engaged in their

work.

For the HRD Climate the respondents replied agree to almost too every statement, thus it

could be observed that the climate provided to them is very much open, supportive and

developmental. Because of this type of climate they are highly and positively engaged in

their work.

For few statements like I can continue working for longer periods, I get carried away when I

am working and the top management is willing to invest their considerable time for

employee‟s development, they were neutral to them and thus this depicts that they are

neither satisfied nor dissatisfied with the climate. So, in order to make the employees

satisfied the organization should try to improve these things.

CHAPTER 6: CONCLUSION

HRD climate in any organization has become an indispensible part. As per the previous

researches there exists a relationship between HRD climate and job satisfaction, organization

commitment, employee empowerment which is further resulting that employees are somewhere

engaged in their work. But there was no clear indication towards the confirmation of relationship

between HRD climate and employee engagement. Also one cannot be sure that if all the above

mentioned factors are conducive in relation to the employee‟s expectation, this will turn him to

an engaged employee.

As per our study, we observed that service sector organizations are trying their best to engage

their employees in their work. As a part of policies and procedures there exist an environment of

openness, authenticity, confrontation, trust and many more which are motivating the employees

in their job. Organizations today are taking regular feedback from their employees so as to

improve their system, culture and environment. Employees are being considered as the most

important asset of the organization and without their full engagement there could not be any

positive outcome or result.

Early identification of human resource potential and development of their skill represent two

major tasks of human resource development. This can only be achieved when conducive HRD

Climate prevails. Thus on the whole, we found the existence of good HRD Climate in the

organization according to the perceptions of employees sought through the scale constructed for

measuring the same among service sector employees. The employees in general showed a

favorable attitude towards HRD Policies and practices of the organization. They were satisfied

with the policies of the top management as well as contented with their work and the

organization as a whole i.e. level of Employee Engagement was also good. Most importantly our

findings support the existing literature and add to the deficit literature existing which have

attempted to explore the relationship of HRD Climate and Employee Engagement on a standard

context. It was concluded that there is a significant relationship between Employee Engagement

and HRD Climate and a positive change in HRD Climate and its components will bring about

positive changes in Employee engagement and in turn impact the Organizational Performance in

positive manner. However the findings of the present study indicate that there is a still substantial

scope for improvement in various aspects of HRD in the organization as well as factors

influencing Employee Engagement.

In the end it must be emphasized here that since this study was carried out in a service sector

organization, the findings of the study are not applicable to other types of organizations. Further,

since the sample consisted only of employees of 3-4 organizations of service sector, the findings

may be generalized for the employees of other organization in the same sector. Although this

study made an attempt in examining the potential impact of HRD Climate on Organizational

performance by concentrating on single variable i.e. just employee engagement, but there are

many other indicators of OP such as Financial Performance, Employee Turnover, Job

satisfaction and Productivity which remains unconsidered. Thus, there is a scope for further

research in this area. In general, this study contributes to the literature on HRD Climate and

provides an additional insight to the individuals associated with the HR field.

CHAPTER 7: LIMITATIONS OF THE STUDY

Several limitations has impacted the results and generalizability of the findings during the

research design phase due to the differentiated response rates, they are as follows:

Less time availability.

Biased answers by the respondents.

Research was limited to Jalandhar region only.

CHAPTER 8: SUGGESTIONS

The finding of the present study indicates that there is a still substantial scope for improvement

in various aspects of HRD in the organization as well as factors influencing employee

engagement.

Some of these aspects along with suggestions are:-

The overall relation between the two variables depicts that there is good relationship between

both of them but when asked from the respondents that is it difficult for them to detach

themselves from work then the respondents did not accepted it. The mean score of this factor

was very low as compared to other factors (2.88),thus this shows that employee are engaged

in their work but they are not highly committee or absorbed in their work so, the organization

should try to improve the climate and should implement some activities which could help in

increasing the commitment level of employees.

The top management‟s commitment should be increased towards learning & potential

development of its human resources as this would engage them in their work. The mean

score of the items dealing with these aspects were 4.736, 4.856 which are below average

this means that presently they are giving less importance to these things.

Management should focus their attention on building culture of trust and team work as the

mean score (4.872) is below average which is showing that there does not exist a relationship

of trust.

The top management of the organization should try to implement some various welfare

activities as according to the analysis it is being observed that the mean score for this

statement is very much low as compared to other factors of HRD mechanism.

Organization should try to emphasize on the activities such as career opportunities, should try

improving the rewarding system and also the compensation structure so, that employees get

more involved or engaged in their work.

In the end it must be emphasized that since the research was limited to Jalandhar region and the

data was collected from 3-4 organization, the findings and suggestions are not applicable to

entire Service industry.

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final capstone report_2

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