Role of Employee Engagement on Employee Performance in the Context of Pakistan Essays

Role of Employee Engagement on Employee Performance in the Context of Pakistan Essays Role of Employee Engagement on Employee Performance in the Context of Pakistan Essay Role of Employee Engagement on Employee Performance in the Context of Pakistan Essay the Q12 and Overall 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, 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 a nd 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. Finally, engaged school principals were seen as transformational leaders – being able to inspire, stimulate and coach their co-workers. Chapter 3 Theoretical Framework Theoretical Model 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 â€Å"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. 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. 4) 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 â€Å"a more persistent and pervasive affective-cognitive state that is not focused on any particular object, event, individual, or behavior†. Vigor is characterized by hig h 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 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 â€Å"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. 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 hey 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 a lso 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 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. 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 [pic] 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. Figure 5. 2 [pic] Figure 3. 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. Table 5. 1 Descriptive Statistics | |N |Minimum |Maximum | |Employee Engagement |Pearson Correlation |1 |. 690** | | |Sig. (2-tailed) | |. 00 | | |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 Regression Dependent 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. Table 5. 4 Necessary Statistics |Coefficient of |Adjusted Coefficient of |F-Statistic |Sig. (F-Stat) | |Determination (R2) |Determination (Adj. R2) | | | |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. 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 nd 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 statistic al 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 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 rel