final thesis report ist draft of yasir 2
DESCRIPTION
Role of Employee Engagement on Employee PerformanceRole of Employee Engagement on Employee Performance in Pakistani ContextThesis submitted to:Department of business administration Superior University LahoreSupervisor Name: Prof. Muhammad Ilyas Submitted By: Muhammad Yasir Roll No: 6133 BBA (Hons) 2005-2009Department of business administration Superior University Lahore1Role of Employee Engagement on Employee Performance2Role of Employee Engagement on Employee PerformanceThesiTRANSCRIPT
Role of Employee Engagement on Employee Performance
Role of Employee Engagement on Employee Performance in Pakistani Context
Thesis submitted to:-
Department of business administration Superior University Lahore
Supervisor Name: Prof. Muhammad Ilyas
Submitted By:Muhammad Yasir
Roll No: 6133 BBA (Hons) 2005-2009
Department of business administrationSuperior University Lahore
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Role of Employee Engagement on Employee Performance
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Role of Employee Engagement on Employee Performance
Thesis Title:
Role of Employee Engagement on Employee Performance in Pakistani Context
SUBMITTED BYMuhammad Yasir
THESISPresented to the department of business
administration Superior University Lahore, in Partial Fulfillment of the requirements for
the Degree of
Submitted to
Prof. Muhammad IlyasSuperior University Lahore
Session 2005-2009
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Bachelor in Business Administration
Role of Employee Engagement on Employee Performance
I dedicate this project to my family and more heartily to my dearest mother only because of them I am here at this stage to learn something and to my respected teachers they give me such an excellent guidance during this project. I also dedicate this project to those parents who want to teach
their Childs but can’t afford.
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Role of Employee Engagement on Employee Performance
It is certified that the research work contained in this thesis titled “Role of Employee Engagement on Employee Performance in Pakistani Context” has been carried out under my supervision by MUHAMMAD YASIR and is approved for submission in the partial fulfillment of the requirement for the degree of bachelors in business administration.
Supervisor:
--------------Prof. Muhammad Ilyas
Dated: October 27, 2009
Submitted Through
Tahir Shabbir
Superior University
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Role of Employee Engagement on Employee Performance
MUHAMMAD YASIR, Roll No: 6133 student of BBA (hons) session: 2005-2009, hereby declare that matter printed in the thesis titled “Role of Employee Engagement on Employee Performance in Pakistani Context” is my own research work under kind supervision of our supervisor Prof.Muhammad Ilyas and has not been printed, and published and submitted as research work thesis or publication in any form in any university research institute etc. in Pakistan or abroad. I also declare that this thesis work has not been used for any benefit or advantage elsewhere.
Dated Deponent
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Role of Employee Engagement on Employee Performance
First of all I express my deep gratitude to Professor Muhamamd Ilyas without whose encouragement, guidance and benign attitude my thesis could not have been completed in the
present form.
I take this opportunity to thanks for the guidance & help provided to us for the completion of our thesis by Mr. Mohsin
Iqbal, Head Human Resource Management in Hiaer Electronics, My colleagues Ms. Sonia Uroj, Training and
Capacity building manager in MITAAS, Ms. Nabeela Malik, Editor Manager Today Magazine.
I am equally thankful to all our worthy teachers who inspired and sincerely helped me in writing this thesis.
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Role of Employee Engagement on Employee Performance
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Role of Employee Engagement on Employee Performance
AbstractFrom last decade the employee engagement become a very hot topic of management in
the world. Most of companies in the world have realized the importance of employee
engagement in their organizations. These organizations are striving from the few years to
engage their employees into the workplace. Engagement is defined as being involved or
being committed to something. Employees feel engaged when they find personal
meanings and motivation in their work receive positive interpersonal support, and
function in an efficient work environment. This study attempt to examine the relationship
between employee engagement and employee performance in Pakistani Context. A
survey was completed by 111 employees working in a variety of job and organizations.
Questionnaire was used to collect the data from the respondents. The respondents were
asked to give their opinion about the different statements regarding employee
engagement and employee performance on a 5 point likert scale. The results of this study
indicate that the employee engagement have the positive relationship with employee
engagement and play a major role in employee performance. This study investigate that
the engaged employees are more productive than disengaged. Further this study suggests
that still there is lot of research required on this topic.
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Role of Employee Engagement on Employee Performance
Chapter 1
1). Introduction
Organizations count on people as their most valuable asset. It is the most appropriate
approach and evidence exists that organizations worldwide are struggling to meet
production and service demands knowing that these outcomes are directly dependent on
the ability, commitment and skill of a work force that is mostly disengaged.
Workplace environment has changed over the past decade and now organizations have to
be more competent to survive in the global economy. The key to survival of companies is
their ability to satisfy customer needs, while achieving quality, flexibility, innovation and
organizational responsibility, through a sincere engagement and commitment of
employees.
These days Employee Engagement has become a very hot topic of the management in
this global competitive world. Everyone seems to be on the path to get their employees
engaged. The claim has been made that engagement is needed for higher levels of firm
performance while, consultant studies estimate that only 14 percent to 30 percent of
employees are really engaged at work. In particular, very little attention has been given to
the engagement levels of people running organizations. Now the world’s top-performing
organizations understand that employee engagement is a force that drives business
Outcomes. The best performing companies know that developing an employee
engagement strategy and linking it to the achievement of corporate goals will help them
win the marketplace. Engagement means the extent to which people value, enjoy, and
believe in what they do. Employees are engaged when they are motivated and satisfied.
Engaged employees are committed to their organizations and have the tremendous pride
and job ownership and put more discretionary effort in terms of time and energy, and
significantly demonstrate higher levels of performance and productivity than those who
do not feel engaged with their work.
“Engaged” is defined as being involved or being committed to something. Employees
feel engaged when they find personal meaning and motivation in their work, receive
positive interpersonal support, and function in an efficient work environment. An
engaged employee feels that he or she has as take in the outcome, with a desire to
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Role of Employee Engagement on Employee Performance
contribute to achieving more than personal goals. In short, a motivated and inspired
employee is an “engaged” employee. There are some definitions used by some
researchers are given below.
Harter, Schmidt and Hayes (2002) define employee engagement as “the individual’s
involvement and satisfaction with as well as enthusiasm for work” (p. 269).
DDI (2005) uses the definition “The extent to which people value, enjoy and believe in
what they do” (p1). DDI also states that its measure is similar to employee satisfaction
and loyalty.
Wellins and Concelman (2004) call employee engagement “the illusive force that
motivates employees to higher levels of performance” (p.1) “This coveted energy” is
similar to commitment to the organization, job ownership and pride, more discretionary
effort (time and energy), passion and excitement, commitment to execution and the
bottom line. They call it “an amalgam of commitment, loyalty, productivity and
ownership” (p. 2). They also refer to it as “feelings or attitudes employees have toward
their jobs and organizations” (p. 2).
Robinson, Perryman and Hayday (2004) define engagement as “a positive attitude held
by the employee towards the organization and its values. An engaged employee is aware
of the business context, works with colleagues to improve performance within the job for
the benefit of the organization. The organization must develop and nurture engagement,
which is a two-way relationship between employer and employee” (p2). They say that
engagement overlaps with commitment and organizational citizenship behavior, but it is
two-way relationship. They say it is “one step up” from commitment.
Yet, creating an engaged workforce remains to be a challenge for many organizations. It
requires effective leadership and other organizational factors to help employees realize
their full potential and value.
The importance of ensuring employee engagement has been realized and very well
focused on all over the world. While, in Pakistan the importance of the concept is still not
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Role of Employee Engagement on Employee Performance
really understood. The companies operational here are yet not paying yield to improving
engagement of employees. Organizations need to concentrate on optimizing employee
productivity and available organizational resources.
As a matter of fact, ample revenues can only be realized by an organization through
optimal engagement of its employees’ knowledge, skills, abilities, and motivations. It is
essential for progress of Pakistani companies as well.
2). Research Goal
The aim of the thesis is to describe the relationship between employee engagement and employee performance and what impact employee engagement has on employee performance.
3). Research Question
What is according to the literature and research in Pakistani context, the impact of employee engagement on the performance of the employee?
4). The sub questions are
What is the definition of employee engagement?
What is the employee engagement according to the literature? Which factors have the most influence on the engagement of employees and what
role plays the employee engagement on the performance of the employee?
Which of the factors that influence employee engagement have the greatest impact on employee performance? Literature Review
What kinds of value systems occur in the organization that impact engagement and employee performance? How do they impact engagement and performance? Literature Review
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Role of Employee Engagement on Employee Performance
Chapter 2
Literature ReviewHarter et al (2002) conduct a Meta analysis study on business-unit level relationship
between employee’s satisfaction, employee engagement, and business outcomes. The
basic focus of this study was to assess the relationship between employee outcomes of
satisfaction and engagement and business outcomes of customer satisfaction,
productivity, profit, turnover, and accident. They used the Meta-analysis technique. They
conduct a Meta-analytic review of 7,939 business units in 36 companies. They found that
higher levels of both employees satisfaction and employee engagement were associated
with greater customer satisfaction, productivity, and profit and decreased the turnover
and accident. This study found that the both employee satisfaction and employee
engagement have the significant impact on business unit level outcomes.
May et al (2004) explore the mediating effects of three psychological conditions –
meaningfulness, safety, and availability – on employee engagement in their work. They
conduct the field study using survey methodology. The study was conducted at a large
insurance firm located in the Midwestern USA. They used the questionnaire technique to
collect the data from 270 employees and managers from different departments to measure
the participant’s perception about themselves, their jobs, supervisors and co-workers.
This study shows that all three psychological conditions have the significant positive
relationship with engagement. Meaningfulness displayed the strongest relation. Job
Enrichment and work role fit were positively linked to psychological meaningfulness.
Rewarding co-workers and supportive supervisor relations were positively associated
with psychological safety, whereas adherence to co-worker norms and self-consciousness
were negatively associated. In this study they found that the relation of job enrichment
and work role fit have with engagement were both fully mediated by the psychological
conditions of meaningfulness.
Salanova et al (2008) examine the mediating role of work engagement (vigour and
dedication) among job resources (job control, feedback, and variety) and proactive
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Role of Employee Engagement on Employee Performance
behavior at work. They investigate this mediating role using Structural Equation
Modeling in two independent samples from Spain (386 technology employees) and the
Netherlands (338 telecom employees). Results from in both samples confirmed that work
engagement fully mediated the impact of job resources on proactive behavior. In this
study they also found that if the employees have the sufficient job resources they will be
more engaged and work with full commitment and dedication and behave proactively.
Cabrera et al (2006) conduct a study to investigate the determinants of individual
engagement in knowledge sharing. The basic focus of this research was to investigate the
psychological, organizational and system related variables that may determine individual
engagement in intra-multinational knowledge sharing. They conduct the exploratory
research and used the survey method to collect the data from 372 employees from a large
multinational firm. They investigate that the self-efficacy, openness to experience,
perceived support from colleagues and supervisors and, to a lesser extent, organizational
commitment, job autonomy, perceptions about the availability and quality of knowledge
management systems, and perceptions of rewards associated with sharing knowledge,
significantly predicted self-reports of participation in knowledge exchange.
Bakker et al (2008) conduct a research to provide an overview of the recently introduced
concept of work engagement. The basic focus of this study was to provide an overview of
what the work engagement is and what are its antecedents and consequences. They use
the qualitative and quantitative techniques in this study. They use the several instruments
to measure work engagement. They used the Utrecht Work Engagement Scale for the
assessment of three engagement dimensions (vigor, dedication and absorption). They also
used the Oldenburg Burnout Inventory (OLBI) instrument to assess the positive and
negative burnout phrased items. They found that work engagement can be defined as a
state including vigor, dedication, and absorption. They also found that job and personal
resources are the main predictors and drivers of engagement. They found that if the job
demands are high than these resources gain their salience. The quantitative studies in this
research show that work engagement is positively related to job performance. In this
study they found through quantitative study that engaged employees received highest
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Role of Employee Engagement on Employee Performance
rating from their colleagues on in-role and extra-role performance. They also found that
engaged employee perform well and are willing to go the extra mile.
Schaufeli et al (2004) conduct multi sample study to measure the relationship between
job demands and job resources with burnout and engagement. The basic focus of this
study was to test a model in which burnout and engagement have different predictors and
different possible consequences. They used the questionnaire technique to gather the
data. They collect the data from 1698 employees from 4 different Dutch service
organizations. They used the different instruments to measure the data. They found that
the burnout and engagement are negatively related with each other. This study also shows
that the burnout is mainly predicted by job demands but also by lack of job resources,
whereas engagement is exclusively predicted by available job resources. This study also
found that burnout related to health problems as well as to turnover intentions whereas
engagement is related to job commitment. This study also found evidence for a positive
Relationship between three job resources (performance feedback, social support, and
supervisory coaching) and work engagement (vigor, dedication and absorption).
The main limitation of this study is its cross-sectional nature. Second this study
exclusively relies on self-report measures.
Bakker et al (2007) conduct a study to investigate that when the job demands are high the
job resources book work engagement. The basic purpose of this study was to test the two
interaction hypotheses. One hypothesis is to predict that job resources act as buffers and
diminishes the negative relationship between pupil misbehavior and work engagement. In
other hypotheses he hypothesized that job resources particularly influence work
engagement when teachers confronted with high levels of pupil misconduct. In this study
he collects the data through questionnaire which was delivered to all the schools in the
East, Northeast, and Southeast districts of Helsinki. In total 805 teachers working in
elementary, secondary, and vocational schools participated in this study. In this study
they used the Finnish version of the Utrecht Work Engagement Scale (UWES) to assess
the engagement. They found that supervisor support, innovativeness, information,
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Role of Employee Engagement on Employee Performance
appreciation and organizational climate can all be considered important job resources for
teachers cope with demanding interactions with students.
Bakker et al. (2006) investigate the success factors among female school principals in
primary teaching and to investigate the relationship between burnout, work engagement
and performance. They conduct the survey to explore the relationship between burnout,
work engagement and performance. They used the questionnaire technique to collect the
data form 105 school principals and 232 teachers. In this study they found that there is a
significant and positive association between school principals’ work engagement scores
and teacher-ratings of school principals’ performance and leadership. More specifically,
results of structural equation modeling showed that engaged principals scored higher on
in-role and extra-role performance. In addition, engagement was strongly related to
creativity; the higher school principals’ levels of work engagement, the better they were
able to come up with a variety of ways to deal with work-related problems. They also
found that finally, engaged school principals were seen as transformational leaders –
being able to inspire, stimulate and coach their co-workers.
Fred et al (2002) conduct a study on employee engagement and manger self-efficacy. In
this study they first examine the theoretical understanding of employees’ engagement.
Then they made an empirical investigation is made observe the role that a wide variety of
manager psychological state of self-efficacy plays in the relationship between their
employee measured engagement and a multiple measure of the manager effectiveness.
They observed the 170 managers, each have 16 subordinates and peers. Results of this
study show that the manager’s self-efficacy is a partial mediator of the relationship
between his or her employee’s engagement and the managers rated effectiveness. Overall
finding of this research suggest that both employee engagement and manager self-
efficacy are important antecedents that together may more positively influence manager
effectiveness than either predicator by itself.
Larry et al (2008) conduct a study to explore the relationship between supportive climate
and organizational commitment as mediated by trust and employee engagement. In this
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Role of Employee Engagement on Employee Performance
study they conduct the survey to collect the data and they use the questionnaire technique
to gather the data from 243 engineers and technicians from a fortune 100 multinational
firms. Results of their study shows that the workers perception about their organizations
supportive work climate has a positive direct relationship on their effective commitment
with their organizations. This study also found that the workers trust on leadership
mediate the relationship between the supportive climate and engagement. This study also
found that the worker engagement positively mediate the relationship between workers
trust and effective commitment.
Ancarani et al (2009). write a research paper in which they describes the interactions
among leadership, engagement, and performance. In this paper they apply a case-study
approach focusing on a production ward of a branch of an electronic multinational
manufacturing firm. In this study the production ward was subdivided into 6 macro-areas,
each one corresponding to a different phase of the production process. In each macro-area
there are 4 work / shift units, each one with a different team manager. Hence, 24 work
unites have been identified, with a total 496 employees. They used the questionnaire
technique to gather the data. The results of this study confirm the role of leadership as
antecedent of engagement. This paper also found that the leadership has the significant
impact on absenteeism and pro-active behavior. This study also shows that engagement is
clearly linked to employee’s positive behavior in terms of both pro-active behavior and
presence at work. This study has some short comings. First of all, the focus is limited to a
single production ward.
Kenneth N. (2006). Investigate the relationship between employee engagement, job
satisfaction, retention and stress at work. Basic aim of This study was to explores the
relationship between employee satisfaction and engagement and several specific
outcomes in an organization including employee retention, job satisfaction, employee
engagement and perceived stress in a large food service company through their annual
employee satisfaction surveys conducted over two years. He conducted the survey in both
2002 and 2004 from 169 employees in a large food service company. He used the single
item measure to assess the perceptions of stress, job satisfaction, engagement, perceived
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Role of Employee Engagement on Employee Performance
sensitivity to work and family issues, and retention likeliness of leaving within the next
12 months. To support the validity of single item measure he used the prior published
research studies. He used the subset of 12 questions from the broader employee survey to
measure the concept of involvement and engagement. The three Envisia Learning
outcomes measures used in this study.
He find out that employees who experience lower engagement, commitment and
involvement with his / her organization and job reported significantly higher intentions to
leave the organization within 12 months, greater levels of perceived work stress and
lower overall job satisfaction and engagement. He suggests that this study provide the
hypothesis that employee engagement can have a significant impact on perception of
stress, overall job satisfaction and retention. He find out that the employees who were
most engaged were less likely to consider leaving within 12 months, were more engaged
and satisfied with work and reported significantly less stress compared to those were less
engaged.
Oliver & Rothmann (2007). perform a research study to investigate the antecedents of
work engagement in a multinational oil company. The basic purpose of this study was to
explore work engagement and psychological conditions with the focus on understanding
the mediating effects of conditions such as psychological meaningfulness, availability
and safety on work engagement in a multinational oil company. A cross sectional survey
design was used in this study. In this study they conduct the survey of 200 employees
from a multinational oil company. The respondents were mostly females married and
English speaking. The majority of the respondents in this study were fall into the age of
31-40 years age group. The majority of the participants worked for the company for 6-10
years and mostly permanent employees participated in this survey. A Questionnaire was
used to gather data in a no-random field survey. Two measuring instruments were used
for the purpose of this study namely the work engagement scale and the work experiences
scale. This study investigate that two psychological conditions i.e. meaningfulness and
availability medicated the relationship between antecedent conditions and work
engagement. This study also investigates the psychological meaningfulness as the
significant and strongest predictor of work engagement. This study also confirmed the
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Role of Employee Engagement on Employee Performance
importance of psychological availability as a predictor of work engagement. This study
also investigate that the work role fit, self consciousness act as the predicator of
engagement. This study had various limitations. First, the scale which measured
psychological safety was not sufficiently reliable to be used in. More research is needed
regarding the measurement of psychological safety. Second, a cross-sectional design was
used in this study, which makes it impossible to assess the causality of relationships. It is
recommended for future research to include further investigation of the mediating effects
of psychological conditions such as meaningfulness, safety and availability on work
engagement in other contexts, as well as with larger samples, or even by the use of
longitudinal studies to establish causal relations. This study recommends that the finding
of this study have important implications for organizations and managers in terms of
design of jobs, employee selection and relations ions with employees.
Corporate Leadership Council (2004) conducts a survey study on Driving Performance
and Retention through Employee Engagement. The basic purpose of this study was to
investigate that how engaged is the workforce? What is the business impact of high
engagement? What drives employee’s decisions to commit to staying with the
organization and volunteers extra effort on the job? How does engagement differ by
employee segment and by organization? How can organizations establish a high
performance relationship with employee in support of business needs? Corporate
Leadership Council conduct the survey of 50, 000 employees including heads of HR, HR
Leadership, Senior Executive Team and line unit managers at 59 global organizations.
The Corporate Leadership Council investigates the top 10 findings from this study. These
findings are given below.
In this study she found that those employees who are most committed perform 20% better
and are 87% less likely to leave the organization—indicating the significance of
engagement to organizational performance. This study also found that while the majority
of employees are neither highly committed nor uncommitted, more than 1 in 10
employees are fully disengaged—actively opposed to something or someone in their
organizations. This study investigate that instead, dramatic differences between
companies suggest that engagement levels are determined more by company strategies
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Role of Employee Engagement on Employee Performance
and policies than any characteristics regarding the employee segments themselves. This
study also investigate that an analysis of both rational and emotional forms of
engagement reveals that emotional engagement is four times more valuable than rational
engagement in driving employee effort. She found that Employee retention, on the other
hand, depends more on a balance between rational and emotional engagement—as
illustrated by the importance of compensation and benefits in driving employees’ intent
to stay. She also found that employees’ commitment to their manager is crucial to
engagement, the manager is most important as the enabler of employees’ commitment to
their jobs, organizations, and teams. She also found that among the top 25 drivers of
employee engagement identified by the Council, the most important driver is a
connection between an employee’s job and organizational strategy.
Joseph et al (2009). Conduct a study on Employee Retention: A business Case for
Engagement in a large Air Force organization. The basic purpose of this research study
was to investigate the retention factors impacted their desire to stay with their current
organizations, as well as to investigate the factors that indicate the intentions to leave the
organization. In this study about 163 employees participate who belong to the same Air
Force organization. In this study the sample size was 68% male and 57% civilians, and
76% were between the ages of 21-30. 163 employees from a large Air Force organization
participated in a web-based organizational assessment targeting junior government
employees. In this study the participants were asked the questions about the retention
factors and turnover factors. This study explores the concept of engagement within the
context of employee retention using qualitative techniques. This research investigate that
the factors which lead to engagement remain the employees with the organization in the
Air Force organizations. This study explore that the challenging and compelling work
factor has the strongest influence on employees on the intentions to remain with the
organization. The current study demonstrated that the younger generation of government
employees seek to experience this state of engagement, and more importantly; when the
conditions to foster employee engagement are absent, so too will be the employees.
Government leaders should listen to their personnel and seek to ensure that all employees
are actively engaged in their work. This will promote not only enhanced organizational
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Role of Employee Engagement on Employee Performance
performance but also retention in a time where every role and every personnel slot
matters.
Alan M.S. & Joseph L R. (2006) conduct a study to investigate the antecedents and
consequences of employee engagement. The basic purpose of this study was to test a
model of antecedents and consequences of employee engagement based on social
exchange theory. They collected the data on 6 variables through questionnaire technique
from 102 employees who are working in different organizations on variety of jobs. The
average age of the participants was 34 and there was the 60% are the females. The entire
participants are in current job and have the average experience of 4 years or more than
that. They used the multiple regression analysis technique to find out the antecedents of
employee engagement through 6 variables like job characteristics, perceived
organizational support, supervisor support, rewards and recognition, procedural justice
and distributive justice. They found that all the variables predict the employee
engagement and the employee engagement have the mediating relationship with
antecedents and consequences like employee satisfaction, employee commitment and
intention to quite. They recommends that there are other variables that might also be
important for the employee engagement such as human resource practices, training
programs and incentives and compensation might also be important for engagement.
They also suggest that there are some personality factors that are important for the
employee engagement. The study should be conducted through a large sample size.
Hewitt A. (2007) Conduct a study to investigate the factors that define the best employers
in Asia. This study investigate that what practices optimize employee performance and
enable organizations to gain competitive advantage in a robust labor marketplace. More
than 750 organizations participate in this study from 7 countries of Asia like China, India,
Australia, New Zealand and Korea, Japan, Singapore and Hong Kong. In this study
Hewitt conduct the employee opinion survey of approximately 160,000 employees. To
validate the data, Hewitt conducted four hour long audit of randomly selected participants
in each country. Hewitt also interviewed CEOs and collected their views in the process.
In this study Hewitt judge the best employers on the basis of five dimensions. These
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Role of Employee Engagement on Employee Performance
dimensions are 1. Overall effectiveness in human capital management; 2. Employee
engagement and alignment; 3. Senior leadership commitment and effectiveness in people
management; 4. Customer focus; and business success. This study shows that the best
employer had significantly higher employee engagement scores of 87 percent, compared
to only 57 percent in the rest. This study also shows that engaged employees speak
positively about their company, don't want to leave, and willingly put in extra effort to
ensure strong company performance. This study investigate that best employer recognize
employee engagement as a critical factor for business success. This study shows that
career opportunities are a significant driver of engagement in all organizations. This
study also investigate that the employee recognition is also a very significant driver for
employee engagement into the organizations.
Development Dimensions International (2005). Conduct a research study to predict the
employee engagement. She develops an engagement readiness index to predict the
employee engagement. The basic objective of this research was to contract and evaluate a
measure for predicting employee engagement, examine the effect of engagement on
individual outcomes such as job effectiveness and retention likelihood, examine the effect
of supervisor engagement on their subordinates. In this study she measures the employee
engagement using E3sm, a standardized survey instrument designed by Gallup. In this
research she collected data from more than 3800 employees from 7 organizations
spanning a variety of industries and job families. She conducted extensive research across
several organizations to link Career Battery scores to employee engagement. In this
research study DDI's identified the personal characteristics of employees which are
closely related to engagement. These characteristics are adaptability, achievement
orientation, and attraction to the work, emotional maturity, positive disposition, and self
efficacy. These personal characteristics were incorporated into the ERI, in turn;
demonstrated strong relationships with E3sm measured employee engagement. This
study investigates that a measure (ERI) can be used to strongly predict engagement. This
research also supports a substantial relationship between engagement and critical
business outcomes such as individual performance and the likelihood of leaving the
company. This research also shows that the highly engaged supervisors were less likely
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Role of Employee Engagement on Employee Performance
to indicate that they may leave the organization.
Fulmer et al. (2003) empirically investigate the relationship between being a great place
to work and firm performance. In this study they investigate the 100 best companies of
America and also investigate the reason for the best and great place for work. For the
collection of data they invite the 365 companies to participate in this research from out of
1000 best companies. They set a certain criteria to participate in this research for example
the company must have been existence of more than 10 years and have the 500
employees. Only 161 companies participate in this research. They use the 55 item attitude
survey technique to measure the broad range of attitudes, including credibility, respect,
fairness, and pride. This study investigate that the positive employee relations effectively
serve as intangible and enduring assets and may therefore be source of sustained
competitive advantage at the firm level. This study suggests that the companies on the
100 best list enjoy not only positive employee attitude but also competitive advantages in
the market.
Schaufeli et al. (2008) conduct a study on how changes in job demands and resources
predict burnout, work engagement, and sickness absenteeism. The basic focus of this
study was to explore to predict the change in burnout, work engagement and absenteeism
by changing the job demands and job resources. They Use the longitudinal survey
method to collect the data through questionnaire from 201 telecom managers. They also
used the Job Demand-Resource (JD-R) model that postulates a health impairment process
and a motivational process. They used the Structure Equation Model for the analysis of
the burnout and work engagement. The results of the structural equation model revealed
that increase in job demands (overload, emotional demands, and work home interference)
and decrease in job resources (social support, autonomy, opportunities to learn, and
feedback) predict burnout. This study also shows that increase in job resources predict
work engagement. This study also found that increase in burnout and decrease in work
engagement predicts the increase in sickness and absence. This study found that changes
in job resources were predictive of engagement over a period of one year. Specifically,
results showed that increases in social support, autonomy, opportunities to learn and to
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Role of Employee Engagement on Employee Performance
develop, and performance feedback were positive predictors of T2 work engagement
after controlling for baseline engagement.
Salanova et al. (2005) conduct a study on linking organizational resources and work
engagement to employee performance and customer loyalty by mediating the service
climate. The basic purpose of this study was to examine the mediating role of service
climate in the prediction of employee performance and customer loyalty. They used the
survey method to collect the data about the organizational resources, work engagement
and service climate through questionnaire technique from 342 employees working in 114
service units (58 hotel front desks and 56 restaurants) in Spanish restaurants and hotels.
They also collect the data from 140 customers of these units about the employee
performance and customer loyalty through questionnaire. The results of this study show
that the organizational resources and work engagement predict the service climate, which
in turn predict employee performance and then customer loyalty. This study shows that if
the employees have the required organizational resources to perform their job, these
employees are more engaged which resultantly improve the service climate. This study
also shows that the work engagement has the significant impact on service employee
performance and customer loyalty by mediating the service climate. Further analyses of
this study revealed a potential reciprocal effect between service climate and customer
loyalty.
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Role of Employee Engagement on Employee Performance
Perrins T. (2003). Conduct a survey on Working Today: Understanding what drives
employee engagement. The Towers Perrins (2003) conduct a survey of 35,000 employees
working on different positions in U.S. and with 4600 employees working in others
countries of Europe. The basic purpose of this research was to understand the lever of
employee engagement in US and what are the factors that drive the employee
engagement.
She asked both groups questions on a variety of workplace factors in their organization.
Practices, processes, culture, leadership style and development opportunities in other
words, all the key elements typically seen to be the drivers of workforce behavior. She
found a top 10 list of drivers of attraction, engagement and retention. She also found that
while there were some similarities between the US and the European reports the key
factors were quite divergent in each list. This research shows companies with higher
levels of employee engagement outperform their competitors in terms of profitability.
She proceeds to state that Managers must first understand what engages their employees
and what factors drives engagement in their companies. This study shows that an engaged
employee focuses on customer service, giving the customer a reason to return to the store
or business and buy more goods and services. Such employees build customer loyalty and
retention over time. But even in a business where there is little direct contact between
employees and customers, engaged employees can still indirectly affect revenue growth,
for instance, by supporting other employees who do have direct contact or by pioneering
an innovation that boosts sales. This study also shows a positive relationship between
employee engagement and company revenue growth. The study shows that the more the
employee engaged the more the company will generate the revenue. The study also
shows that the companies with high engaged employees outperform than the companies
with low engaged employees. This study also shows that the high engaged workforce is
more stable workforce. This study shows that the high engaged employees do not have
the plan to leave the organization. Finally, and perhaps least surprisingly, Towers Perrin
found strong linkages between what the customer focus employees expressed about their
organization and revenue growth. There is also an inverse between customer focus and
the cost of goods sold.
25
Role of Employee Engagement on Employee Performance
It is interesting to note that the analysis also showed a direct correlation between
employee engagement itself and revenue growth. The implications of the Towers
Perrin study is quite apparent. The power of discretionary effort by highly engaged
employees on multiple levels can be seen for example in the service business, an engaged
employee is proven to focus on customer service and excellence and by doing so
improves customer loyalty and retention. Business indirectly benefits and revenue grows
and behavior modeling and performance culture improves.
Blessing white inc. (2008) conduct a study to investigate the State of Employee
Engagement in 2008. In this study Blessing White Inc. conduct a survey of different
countries which are North America Region, Continental Europe, UK/ Ireland, Southwest
Asia, Australia / New Zealand, India / China. In this study Blessing White Inc. conduct
the interviews with 40 HR manager and line Leaders and conduct an online survey of
7508 respondents from different regions. Questionnaire was used to gather the data from
the respondents. This research investigate that the engaged employees are not just
committed. They are not just passionate or proud. They have a line-of-Sight on their own
future and on the organization’s mission and goals. They are “enthused” and “in gear,”
using their talents and discretionary effort to make a difference in their employer’s quest
for sustainable business success. The results also show that there is a clear correlation
between engagement and retention, with 85% of engaged employees indicating that they
plan to stay with their employer through 2008. Moreover, engaged employees stay for
what they given (they like their work); disengaged employees stay for what they get
(favorable job conductions, growth opportunities job security). This study have some
recommendations that the companies should pay attention to increase the manager
engagement, align, align, redefine career, pay attention to culture, survey less, act more.
Harter et al (2002). Conduct a Meta analysis on Employee Engagement, Satisfaction and
business unit level outcomes. Basic purpose of this Meta analysis was to investigate the
relationship between employee workplace perception and business unit outcomes, based
on the prior research studies by Gallup. The focus of this study was on the thirteen (13)
statements included in the Gallup Workplace Audit (GWA, i.e., the Q12 and Overall
26
Role of Employee Engagement on Employee Performance
Satisfaction). These 13 items — which were selected because of their importance at the
business-unit or workgroup level — measure employee perceptions of the quality of
people-related management practices in their business units. The overall study involved
410,225 independent employee responses to surveys and 13,751 independent business
units in 82 companies, an average of 30 employees per business unit and 168 business
units per company. One hundred seven (107) research studies were conducted across the
82 companies. In this meta-analysis lot of different were selected so that each company
was represented once in each analysis. For several companies, multiple studies were
conducted. In order to include the best possible information for each company
represented in the study, some basic rules were used. If two concurrent studies were
conducted for the same client (where GWA and outcome data were collected
concurrently, i.e., in the same year), then the weighted average effect sizes across the
multiple studies were entered as the value for that company. If a company had both a
concurrent and a predictive study (where the GWA was collected in Year 1 and outcomes
were tracked in Year 2), then the effect sizes from the predictive study were entered. If a
company had multiple predictive studies, then the mean of the correlations in these
studies was entered. In this meta-analysis Pearson correlations were calculated,
estimating the relationship between business-unit average measures of employee
perceptions and general business outcomes. Correlations were calculated across business
units within each company, and these correlation coefficients were entered into a
database for each of the 13 items. The researchers then calculated mean validities,
standard deviations of validities, and validity generalization statistics for each item for
each of the five business-unit outcome measures.
These studies have indicated a directional relationship from employee engagement to
outcomes such as employee retention and customer loyalty/engagement, and a directional
and somewhat reciprocal relationship between engagement and financials. They expect
that in most healthy business units, a reciprocal relationship exist, in which engagement
fuels better management and better management fuels ownership and engagement
(involvement and enthusiasm). These studies have also indicated that, there are
differences across business units in the way employees perceive their work environments,
27
Role of Employee Engagement on Employee Performance
environment and these differences relate to differences in performance. Such differences
represent substantial utility to businesses and other organizations
Hakanen et al (2006). Conduct a study to investigate the burnout and engagement among
teachers. In this study the Job Demands–Resources Model was used as the basis of the
proposal that there are two parallel processes involved in work-related well-being among
teachers, namely an energetically process(i.e., job demands – burnout - ill health) and a
motivational process (i.e., job resources - engagement – organizational commitment). In
addition, some cross-links between both processes were hypothesized. In this study they
used the Structure Equation Model to test the hypothesis. The basic focus of this research
was to investigate the drivers that lead to burnout and engagement in Finnish teachers.
They conduct a survey to collect the data from 2038 Finnish teachers. They used the
questionnaire technique to collect the data. They used the Maslach Burnout Inventory–
General Scale (MBI– GS to measure the burnout. Work Engagement was assessed with
the Utrecht Work Engagement Scale (UWES) in this study.
Results of this study shows that job control, information, supervisory support, innovative
climate and social climate were all positively related to work engagement. This study
shows a positive relationship between job resources and work engagement. The results of
this study also confirmed the existence of both processes, although the energetically
process seems to be more prominent. More specifically, (1) burnout mediated the effect
of high job demands on ill health, (2) work engagement mediated the effects of job
resources on organizational commitment, and (3) burnout mediated the effects of lacking
resources on poor engagement.
Bakker et al. (2006) conducted a study to explore the success factors among female
school principals in primary teaching. They conduct a study on burnout, engagement and
performance. They used the survey method to collect the data through questionnaire
technique from the sample size of 105 school principals and 232 teachers. They used the
Structural Equation Model to measure the hypothesis among principals. Their study
showed significant and positive associations between school principals’ work
engagement scores and teacher-ratings of school principals’ performance and leadership.
28
Role of Employee Engagement on Employee Performance
More specifically, results of structural equation modeling showed that engaged principals
scored higher on in-role and extra-role performance. In addition, engagement was
strongly related to creativity; the higher school principals’ levels of work engagement,
the better they were able to come up with a variety of ways to deal with work-related
problems. Finally, engaged school principals were seen as transformational leaders –
being able to inspire, stimulate and coach their co-workers.
29
Role of Employee Engagement on Employee Performance
Chapter 3
Theoretical Framework
Theoretical Model
Role of Employee Engagement on Employee Performance
30
Employee Engagement
Career Development &
Training
Rewards & Recognition
Open Communication
Empowerment
Management Support
Fair & Equal Treatment
Employee Performance
Involvement in Decision Making
Role of Employee Engagement on Employee Performance
Theoretical Foundation
A stronger theoretical rationale for explaining employee engagement can be found in
social exchange theory (SET). Social exchange theory argues that obligations are
generated through a series of interactions between parties who in a state f reciprocal
interdependence. A basic principal of theory is that relationships evolve over time into
trusting, loyal, and mutual commitments as long as the parties abide by certain “rules of
exchange (Cropanzano and Mictchell, 2005). Rules of exchange usually involve
reciprocity or repayment rules such that the actions of one party lead to a response or
actions by the other party. For example when individuals receive economic and socio
emotional resources from their organization, they feel obliged to respond in kind and
repay the organization. This is the two way relationship between employee and
organization. One way for individuals to repay their organization is through their level of
engagement. That is, employees will choose to engage themselves to varying degrees and
in response to the resources they receive from their organization. Thus in summery social
exchange theory tells that the employees choose to engage more or less with the
organization on the basis of what resources they receive form the organization. This
theory provides the theoretical foundation and explains that employees are more likely to
exchange their engagement for resources and benefits provided by their organization.
Kahn’s personal engagement theoretical framework is helpful in better understanding the
concept of employee engagement. According to Kahn’s (1990) personal engagement
theoretical framework, people express themselves physically, cognitively, and
emotionally in the roles they occupy; people are more excited and content with their roles
when they draw on themselves to perform their roles; and people vary in their levels of
attachment to 1-3 their roles. Furthermore, Kahn suggested that people vary their levels
of personal engagement according to the meaningfulness of a situation (or perceived
benefits), the perceived safety of a situation, and their availability based on resources
they perceive they have. On the other hand, an individual can become disengaged and
protect himself or herself by withdrawing and hiding his or her true identity, ideas, and
feelings.
31
Role of Employee Engagement on Employee Performance
According to Holbeche and Springett (2003), people’s perceptions of ‘meaning’ with
regard to the workplace are clearly linked to their levels of engagement and, ultimately,
their performance. They argue that employees actively seek meaning through their work
and, unless organizations try to provide a sense of meaning, employees are likely to quit.
The research findings suggest that many people experience a greater search for meaning
in the workplace (70 per cent) than in life in general (ibid). There are numerous possible
reasons for this, for example, it may be because people generally spend longer at work
than on other parts of their lives. Holbeche and Springett (2003) argue that high levels of
engagement can only be achieved in workplaces where there is a shared sense of destiny
and purpose that connects people at an emotional level and raises their personal
aspirations.
According to Schaufeli et al. (2002, p. 74) explain that engagement is a positive,
fulfilling, work-related state of mind that is characterized by vigor, dedication, and
absorption.” They further state that engagement is not a momentary and specific state,
but rather, it is “a more persistent and pervasive affective-cognitive state that is not
focused on any particular object, event, individual, or behavior”. Vigor is characterized
by high levels of energy and mental resilience while working. Dedication refers to being
strongly involved in one’s work and experiencing a sense of significance, enthusiasm,
and challenge. Absorption is characterized by being fully concentrated and happily
engrossed in one’s work, whereby time passes quickly and one has difficulties with
detaching oneself from work. In short, engaged employees have high levels of energy
and are enthusiastic about their work.
Expectancy theory points to the importance of the individual’s expectations of his job in
determining Employee Engagement. For individuals who have expectations that their job
should give them opportunities for pay, challenge, a failure of the job to meet this
expectation will lead to disengagement compared to a situation where no such
expectation is involved. What expect expectation of individuals will have of a job may
32
Role of Employee Engagement on Employee Performance
vary. For a large number of reasons, some is deriving from social others from individual
causes.
Another theory that has dominated the study of the nature of Employee Engagement is
Herzberg‟s famous “Two factory Theory‟s of Employee Engagement. In this he claims
that the factors which cause Employee Engagement are separate and distinct from the
factors which job dissatisfaction. The factors causing Employee Engagement, which level
factors such as their relating to satisfaction with the job itself. The factors which cause
job dissatisfaction called hygiene factors are more concerned with conditions of work
such as pay and supervision. At no time does Herzberg argue a job satisfactory, except
may be for a short run.
33
Role of Employee Engagement on Employee Performance
Chapter 4
Data Collection and Methodology.
We chose the survey topic relating to the role of employee engagement on employee
performance. To collect data, we adopted the ‘Survey Questionnaire Research
Technique’.
The questionnaire was solved by the sample size of 111 people working in different
industries in Pakistan. We focused on interacting with people from all major sectors in
Pakistan, including banking sector, academia, corporate aura and officials from the public
sector as well.
We used the questionnaire method to analyze the situation because participants’
responses to direct questions always are very revealing that adds value to the research
purpose.
The famous 5 point ‘Likert Scale’ designed by the psychologist Rensis Likert is used in
the survey. This scale is widely used for the collection of data in questionnaire method.
The respondents were asked to tell as to what level they agreed or disagreed on different
queries as the 1-5 likert scale ranges from strongly disagree to strongly agree.
After collecting the data from respondents we computed the questions into variables
through the SPSS software. After computing the question into variables we found the
descriptive statistics. In descriptive statistics we have found the maximum and minimum
range of the data and we also have found the mean and standard deviation of the data.
We used the histogram to check the normal distribution of the data. We used the scatter
plot to check the relationship between our independent and dependent variables. After
that we have done the correlation by using SPSS software. We have done the correlation
to find the relation between independent and dependent variable to find that the
independent and dependent variable have the positive or negative relationship. We used
the regression analysis to find the relationship between dependent and independent
34
Role of Employee Engagement on Employee Performance
variables. In regression analysis we found the coefficient of variable and here we check
the significance level and the effect of independent variable on dependent variable.
Using SPSS software we have done regression analysis to find the relationship between
dependent and independent variables. In regression analysis we found the coefficient of
each variable and here we found the significance of each variable and the relationship
between the variable is weather positive or negative. We used the t-test to check the level
of significance to select the null or alternative hypothesis. We used the R-Square analysis
to find the on what percentage the independent variable has on dependent variable. We
used the f-test to check the joint effect of employee engagement on employee
performance.
35
Role of Employee Engagement on Employee Performance
Chapter 5
Data Analysis and Interpretation
In this part of the study empirical findings have been shown and interpreted. Table
3.1 presents the descriptive statistics which show the overall picture of the variables.
Figure 5.1
In this histogram we have the frequency distribution on Y-Axis and the independent
variable on the X-Axis. The bell shape in this histogram shows that the data is normally
distributed.
36
Role of Employee Engagement on Employee Performance
Figure 5.2
Figure 3.2 In this histogram we have the frequency distribution on Y-Axis and the
Dependent variable employee performance on the X-Axis. The bell shape in this
histogram shows that the data is normally distributed.
37
Role of Employee Engagement on Employee Performance
Table 5.1
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Employee Performance
111 2.60 5.00 3.9437 .47377
Employee Engagement111 2.49 5.00 3.8172 .52849
Valid N (listwise) 111
In the above table the minimum values, maximum values, mean values and the
values of standard deviation of all the six variables have been shown. Mean value
provides the idea about the central tendency of the values of a variable. Number of
observations of each variable is 111. Standard deviation gives the idea about the
dispersion of the values of a variable from its mean value. Since different units of
measure have been used for different variables the dispersion of a variable using standard
deviation can’t be compared to that of other variable unless both the variables have the
same unit of measure. But still these statistics are helpful to have an idea about the central
tendency and the dispersion of a variable in absolute terms rather than relative terms.
The sample size we have selected was 111 and we have used (1-5) likert scale ranges from strongly disagree to strongly agree. We used the one independent variable in our model which is employee engagement and one dependent variable which is employee performance.
Employee engagement range from 2.49 (disagree) to maximum range 5.00 (strongly agree) and its Mean is 3.8172 its means that the most of the sample size is agree that they are engaged in their companies and its standard deviation is +. 53 which means that the data can variate to .53 on both sides of the mean.
Employee performance variable is ranges from 2.60 (neither agree nor disagree) to maximum range 5.00 (strongly agree) and its Mean is 3.94 its means that the sample size are agree employee performance is influenced by the employee engagement and its standard deviation is + 0..47 that means data can variate to 0.47 on both sides of Mean.
38
Role of Employee Engagement on Employee Performance
Figure 5.3 represent the scatter plot. In this scatter plot we have the dependent
variable on Y-Axis and the independent variable on the X-Axis. This scatter plot gave us
the idea about the relationship between dependent variable employee performance and
the independent variable employee engagement. This scatter plot represents the idea that
employee engagement and employee performance both have positive relationship. It
shows that as the employee engagement is increased the employee performance is also
increased in the same positive direction.
Figure 5.3
39
Role of Employee Engagement on Employee Performance
Table 5.2 represents the table of correlations. Correlation is used to see the relationship
between variables weather the relationship is positive or negative or moderate. This table
reflect that the independent variable employee engagement is positively correlated to the
dependent variable employee performance (r=.690, p=.000). The magnitude of the above
discussed correlation is greater than 0.3 and lies in .30-.70 in the absolute terms, which
shows the positive moderate correlations between the independent variable employee
engagement and the dependent variable employee performance. The above discussed
correlation is statistically significant at less than one percent level of significant. In the
case of the below correlation we will reject the null hypothesis of no correlation as the P-
values is less than 0.01 and we will accept the alternative hypothesis H1.
H1= Employee engagement increase the employee performance
Ho= Employee engagement decrease the employee performance
Table 5.2
Correlations
Employee Engagement
Employee Performance
Employee Engagement Pearson Correlation 1 .690**
Sig. (2-tailed) .000
N 111 111
Employee Performance Pearson Correlation .690** 1
Sig. (2-tailed) .000
N 111 111
**. Correlation is significant at the 0.01 level (2-tailed).
Table 5.3
40
Role of Employee Engagement on Employee Performance
RegressionDependent Variable: Employee Performance
Variables Coefficients Std. Error t-test Significance
Level
(Constant) 1.582 .239 6.608 .000
Employee
Engagement.619 .062 9.955 .000
EP=C+B1(EEi)+ Ei
EP=1.582+.619(EEi)+ Ei
Table 5.3 presents the results of the regression analysis. The results show that the
independent variable employee engagement is significantly affect the employee
performance as shown by the values of the t-statistic and the corresponding P-Values. t-
test is used to test the significance of the individual partial regression coefficients. Null
hypothesis in this test is set as the partial regression coefficient is zero. This test shows
that the coefficient of employee engagement is statistically significant at less than one
percent level of significance. As the coefficient of the employee engagement has the
positive sign so the effect of the employee engagement on employee performance is
positive. The magnitude of the partial regression coefficient of the employee engagement
is 0.619, which suggests that holding other factors constant an increase of one unit in this
variable would raise the employee performance by 0.619 units.
Our independent variable is employee engagement and its significance level is 0.00
which is less than 0.05 its means the relationship of employee engagement and employee
performance is positive and statistically significant.
41
Role of Employee Engagement on Employee Performance
Table 5.4
Necessary Statistics
Coefficient of
Determination (R2)
Adjusted Coefficient
of
Determination (Adj.
R2)
F-StatisticSig. (F-
Stat)
0.476 0.471 99.093 0.000
Table 5.4 reflects the joint effect of the independent variable’s on dependent variable.
Coefficient of Determination R-Square is used to find the percentage that to what extent
the independent variable’s affect on dependent variable. The value of the coefficient of
determination (R2) is .476. This shows that the 38 percent affect on dependent variable
employee performance is due to the independent variable employee performance and the
other 52 percent affect on employee performance is due to the other variables which are
not included in our research study.
In 3.4 the value of F-statistic is statistically significant at less than one percent which
exhibits that our independent variable is jointly affecting our dependent variable that is
employee performance.
42
Role of Employee Engagement on Employee Performance
Chapter 6
Conclusion and Summery
These days Employee Engagement has become a very hot topic of the management in
this global competitive world. Everyone seems to be on the path to get their employees
engaged. The claim has been made that engagement is needed for higher levels of firm
performance while, consultant studies estimate that only 14 percent to 30 percent of
employees are really engaged at work. In particular, very little attention has been given to
the engagement levels of people running organizations. But unfortunately the importance
of employee engagement has been only recognized by the top multinational
organizations. While, in Pakistan the importance of the concept is still not really
understood. The companies operational here are yet not paying yield to improving
engagement of employees. Organizations need to concentrate on optimizing employee
productivity and available organizational resources.
This study has investigated the relationship between employee engagement and employee
performance in Pakistani context. It provides the ground basis to organizations that are
working in Pakistan and want more productivity with their human assets to gain more
productivity by engaging their human assets and investing on them. This study has the
significant implications for the Pakistani organizations to engage their employees on
workplace to gain the competitive advantage and more productivity. For this study we
use the employee engagement as independent variable and employee performance as
dependent variable. To study the relationship of employee engagement on employee
performance we used various statistical techniques. We used descriptive statistics and
here we found the minimum and maximum range of data and also found the means and
standard deviation of variables. The measure of central tendency (Mean) of employee
engagement is 3.82 which show that most of the respondents agree that they are engaged
in their companies. The mean of employee performance is 3.94 which show that those
employees who are engaged in their organizations are more productive.
To check the relationship between dependent and independent variable a scatter plot was
drawn, the line goes left to right upward which shoes that the independent and dependent
43
Role of Employee Engagement on Employee Performance
variable have positive relationship; it means that independent variable influences
employee performance.
A Histogram graph was drawn to find the frequency distribution of data and it was found
that the data is distributed normally because it gives us a bell shape. The correlation
between employee engagement and employee performance shows that the employee
engagement has the moderate positive correlation with employee performance and this
relationship is also statistically significant. According to our research model it is
statistically proved that employee engagement have a positive impact on employee
performance. Like several other studies (Schaufeli and Bakker, 2004; Sonnentag, 2003)
the results of this study suggest that employee engagement partially mediates the
relationship between antecedent variables and consequences. The results of this study
also suggest that employee engagement can be understood in terms of SET. That is those
employees who receive higher organizational support are more likely to respond with
greater levels of engagement in their job and in the organization.
Further this study provides some implications for the companies who have their
operations in Pakistan; a need to focus on employees’ engagement. This research
suggests that the companies should engage their employees on the workplace so that they
can be willing to apply extra effort for more productivity. This study demonstrates that
the organizations should invest on the engagement of their human assets that will
consequently yield more profit for the organization.
Limitations:
1. First of all, there is a need for more research in the field of employee engagement and employee performance. Not enough research has been done in order to describe the relationship completely. In Pakistan there is no one research author who focus on employee engagement and conduct the research on employee engagement in Pakistan.
2. Secondly the responses of this research might have been affected by the some biased opinions.
3. Thirdly the sample size which was chosen for this research was very small and limited to one city. Other cities of Pakistan could not be focused in this research.
4. Fourth the time assign for this research was very small.
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Role of Employee Engagement on Employee Performance
Wellins, R. & J. Concelman. (2005). Creating a culture for engagement. Workforce Performance Solutions. Retrieved August 1, 2005 from www.WPSmag.com.
Salanova, M., Agut, S. and Peiro´, J.M. (2005), “Linking organizational resources and work engagement to employee performance and customer loyalty: the mediation of service climate”, Journal of Applied Psychology, Vol. 90, pp. 1217-27.
Schaufeli, W.B. and Bakker, A.B. (2004), “Job demands, job resources and their relationship with burnout and engagement: a multi-sample study”, Journal of Organizational Behavior, Vol. 25, pp. 293-315.
Schaufeli, W.B. and Salanova, M. (2007), “Work engagement: an emerging psychological concept and its implications for organizations”, in Gilliland, S.W., Steiner, D.D. and Skarlicki, D.P. (Eds), Research in Social Issues in Management: Managing Social and Ethical Issues in Organizations, Vol. 5, Information Age Publishers, Greenwich, CT.
Xanthopoulou, D., Bakker, A.B., Demerouti, E. and Schaufeli, W.B. (2007c), “How job and personal resources influence work engagement and financial turnover: a diary study in a Greek fast-food company”, manuscript submitted for publication.
Salanova, M. & Schaufeli, W.B. (2008). Job resources, engagement and proactive behaviour. International Journal of Human Resource Management, 19, 116-131.
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