The Impact of Employee Engagement on Company Performance and Productivity

This research focuses on examining how organizational behaviour towards employee engagement impacts company performance and productivity. The study is preoccupied with expanding the current knowledge concerning the link between organizational behaviour and employee engagement. The research was guided by the context provided by the theory of planned behaviour since it would foster an evaluation of the effect that perceived behavioural control has on people’s intentions relative to the workplace. The study is based on secondary research, whereby desk research in addition to case studies were used in advancing the research aim. Analysis entailed using the framework provided by the theory of planned behaviour whereby the control beliefs element was assessed in the collected information. The research concludes that leaders have the capacity to fashion organizational behaviour including instituting a culture that is concerned with employee engagement. This approach, in turn, enhances performance and productivity. It is thereby recommended that managers actively attempt to amplify the engagement levels through coming up with supportive services, instituting management practices that are fair and equitable, and implementing positive interventions.


Key words: organizational behaviour, employee, employee engagement


Organizational Behaviour and Employee Engagement


Introduction


Background


It is common knowledge that employees are a vital resource that facilitates the flourishing of an organization. Every business is usually engaged in branding, which is all about people since they are instrumental in building and buying the brand (Harris 2007, p. 102). It is thus apparent that workers are crucial stakeholders since they enact an entity’s features in addition to their actions influencing the customer experience. Every worker is supposed to work on the promises that an organization makes to its consumer base, and if it is wisely done, success is realized via more sales, awareness, and loyalty (Harris 2007, p. 102). Therefore, a failure to represent the brand that an organization endorses reveals several aspects including a disconnection between the employee actions and brand characteristics. However, such an issue can be resolved through internal brand management, which involves numerous activities including cultivating the desired behaviour. There is no way to prescribe consistent conduct, but it can be nurtured (Harris 2007, p. 105). Through encouraging some desired demeanours, an appropriate culture can then develop. This topic is very critical in the business world since the control that workers endures translates into their level of engagement, which has implications for the company’s output. An organization’s internal environment influences the activities that are undertaken by the employees, which determine the experience that customers will undergo if they decide to make a purchase.


Importance of the Problem


The research will help in expanding the current knowledge regarding the association between organizational behaviour and employee engagement. A better understanding of this problem will be made possible by utilizing the theory of planned behaviour as a framework for comprehending and making sense of how organizational behaviour and employee engagement are related.


The Theory of Planned Behaviour


This concept postulates that the way people behave is dictated by three beliefs, which are the likely implications of the conduct, normative anticipations of other persons, and the existence of factors that promote or inhibit a particular action (Ajzen 2002, p. 665). The component that is of consequence to this research is the last belief, which is also referred to as control beliefs. This aspect allows for the emergence of perceived behavioural control, which, in turn, affect people’s intentions relative to their productivity and performance.


Research Boundary


The study had to contend with some limitations. Owing to limited resources, only secondary data was used for this research. There were some delimitations as well. This research exclusively concentrated on the correlation between organizational behaviour and employee engagement and the way it impacts organizational performance and productivity. Other implications were not considered in this paper. Secondly, there was no primary research data that was employed. Thirdly, literature to be used must have been from 2000 until 2018.


Research Aim


This research is preoccupied with pinpointing the effect of organizational behaviour towards employee engagement on company performance and productivity.


Structure of the Dissertation


The paper consists of four sections. Firstly, there is the literature review, which is concerned with the current knowledge relative to the research aim. Secondly, the methodology of this research paper will be described. The third part deals with data analysis and the findings. The last section is the conclusion, limitations, and recommendations.


Literature Review


Definition of Organizational Behaviour


Organizational behaviour involves three significant aspects, which are the way people behave in a corporate setting, the interface between these persons and the organization, and the organization (Griffin and Moorhead 2011, p. 3). Each individual has a unique outlook that they utilize in the workplace in addition to having some experiences from working for other firms. These people are not isolated as they interact with others and the organization. The contact with managers, colleagues, and policies transforms the workers through personal and work experiences. Consequently, the presence or absence of the individual has an effect on the organization thus illustrating the existence of an interface between the two. The organization exists before a person is hired there and it continues to do so even after their exit because it tends to preserve its structure and culture.


This aspect also has a definite link to management. Every entity has managers that have different titles, but there exists no position referred to as that of an organizational behaviour manager (Griffin and Moorhead 2011, p. 6). The reason is that this element is not a defined functional unit, but it involves an array of tools and insights at the disposal of managers to aid in the effective execution of jobs (Griffin and Moorhead 2011, p. 6). Managers are thus responsible for the way their juniors behave. Typical activities of the former comprise ensuring proper designing of the assigned jobs, motivation to work harder, resolution of conflicts, assessing performance, and aiding the subordinates to set achievable goals. Managers as well report to others thus also having their actions being influenced.


Any managerial work tends to fall into one of the primary functions. Firstly, there is planning, which involves coming up with a desirable future position in addition to determining the best approach to use to achieve it (Griffin and Moorhead 2011, p. 8; Jeseviciute-Ufartiene 2014, p. 176). Secondly, there is organizing, which entails designing tasks, grouping activities to ease their management, and allocating authority (Griffin and Moorhead 2011, p. 8). It is instrumental in coming up with a fundamental organizational structure thereby ensuring the effective execution of duties (Stretton 2015, p. 2). Thirdly, there is the leading function where managers motivate collaboration to bring about the realization of the organization’s goals. Here, the primary undertakings comprise encouraging workers, handling group dynamics, and the leadership process (Darr 2011, p. 11; Griffin and Moorhead 2011, p. 8). The fourth function is that of controlling whereby the manager monitors and corrects any action to amplify the chances of realizing the objectives (Griffin and Moorhead 2011, p. 8; Šljivić Skorup and Vukadinović 2015, p. 40). This function entails four critical activities including setting standards, gauging performance, comparing the present and anticipated outcomes, and being proactive to remedy any deviations (Darr 2011, p. 12). Behavioural processes are present in all these managerial functions as managers define how people should conduct themselves in the pursuit of effectiveness.


Theoretical Perspectives of Organizational Behaviour


Several perspectives exist, which can elaborate the way managers employ behavioural processes to further an entity’s goals. To start with, there is the theory of systems. A system is the array of components that are correlated to allow functioning as a whole (Griffin and Moorhead 2011, p. 16). Each organization is reliant on an external environment whereby it accepts inputs, alters them, and exports the outputs (Chikere and Nwoka 2015, p. 2). The resources comprise capital, people, information, and managerial skills in addition to including the numerous claimants such as governments, workers, suppliers, and customers (Chikere and Nwoka 2015, p. 3). Inputs are then transformed into outputs, and this factor necessitates various management functions including production, marketing, finance, and personnel (Chikere and Nwoka 2015, p. 3). The outputs can take up different forms including profits, offerings, gratification, and consideration of the aims of the various claimants (Chikere and Nwoka 2015, p. 3). This theory is not only imperative in pinpointing the significance of the environment, but it also assists managers to design the flow and interaction of several components as they enter the system, undergo a transformation, and re-enter the environment (Griffin and Moorhead 2011, p. 17).


Secondly, there is organizational sociology, which can also expound on the creation of organizational behaviour. This theory is based on four assumptions concerning the way organizations work. The rational lens indicates that a leader is prone to being attentive to efficiency, structure, roles, regulations, and hierarchies (Corlett 2000, p. 2). Here, change is perceived to be unusual, and it can only happen when it is orderly and incremental. The human resource lens indicates that managers focus on caring for and developing people in addition to ensuring a fit between workers and the organizational structure (Corlett 2000, p. 2). Change is also viewed as unusual. The symbolic lens entails leaders being preoccupied with the individual’s and organization’s mutual growth and interaction, organizational culture, and the interpretation of corporate experience (Corlett 2000, p. 2). Here, change is seen to be ordinary in addition to being transformational. Through the political lens, the focus is on power, negotiation over scarce resources, and conflict (Corlett 2000, p. 2). Change is deemed to be normal though mostly unpredictable. The assumption that a manager is seen to rely on tends to influence the behaviour of his or her subordinates.


Definition of Employee Engagement


Employee engagement entails energized workers that believe in their employer’s mission and comprehend the way to realize it (Vance 2006, p. 1). Engaged workers give their companies essential competitive advantages. It is believed that this aspect amplifies bottom-line results whereby research has helped in noting a definite link between engagement and effectiveness via greater sales, productivity, consumer satisfaction, and retention (Macey and Schneider 2008, p. 3). A study on seventeen Chinese multinational entities revealed that approximately eighty percent of engaged workers posted high productivity besides not intending to leave the company (Kaliannan and Adjovu 2015, p. 163). Employee engagement is also classified as a good predictor of organizational success and financial performance (Saks 2006, p. 600). It is for this reason that many entities are now measuring employee engagement in addition to instituting guidelines and practices that promote engagement and commitment of their staff members. Many themes emerge from the different interpretations of engagement and commitment including people being satisfied with their work and proud of their employer (Vance 2006, p. 2). Engaged employees are also believed to be in a state where they enjoy their work and feel that their input is valued (Vance 2006, p. 2). The higher the degree of engagement, the more a worker is willing to go the extra mile. Engaged staff members tend to be more committed to staying with their current employer (Vance 2006, p. 2).


There exist some critical ingredients of engagement, which are also measurable. Firstly, there is the occupying the job aspect. People have different degrees in the way they adapt to their roles resulting in a continuum whereby personal engagement is on one end and disengagement is on the other (Vance 2006, p. 4). At the former, persons are physically, emotionally, and intellectually occupied with their work while those at the latter tend to be uncoupled and withdrawn from their role. Secondly, there is a commitment to the job and organization, an aspect that is defined as a readiness to keep up an approach in addition to the reluctance to alter plans, mainly because of the sense of obligation to keep going (Vance 2006, p. 4). Commitment also has several distinct elements with the first one being that of behaviour whereby dedicated people devote energy and time to complete their workload. There is the emotional aspect whereby persons have positive feelings towards an entity that they are committed to. Additionally, there is the rational component whereby people follow through on any commitments they make.


Theoretical Perspectives of Employee Engagement


There is the social exchange theory whose focus is on the interactions in an organization and the way they engender obligations (Cropanzano and Mitchell 2005, p. 874). This theory is based on the exchange rule with the reciprocity expectations as one of the tenets. Two interacting partners can form a relationship, which affects behaviour. A social exchange association brings about goodwill and helpfulness as individuals receive benefits (Cropanzano and Mitchell 2005, p. 883). An excellent model that is often used is that of the perceived organizational support (Cropanzano and Mitchell 2005, p. 883). POS brings about several benefits that can be comprehended in reciprocal terms whereby an employee that perceives the manager to be supportive feels obligated to return the gesture. Hence, a high POS translates into a greater probability of staff members adopting organizational citizenship behaviour, posting less absenteeism, and better job performance (Cropanzano and Mitchell 2005, p. 883). It is thus apparent that workers will repay support with commitment. This model also incorporates the leader-member exchange concept, which entails exchange association that is present between an employer and a manager (Cropanzano and Mitchell 2005, p. 844). LMX is very efficient at forecasting performance ratings.


The Relationship between a Manager’s Behaviour and Employee Engagement


The way managers conduct themselves tends not only to shape organizational behaviour, but they also influence employee engagement. An important factor is that of the leadership style that these individuals choose. Transactional leaders mandate compliance from their subordinates by using the reward and punishment system (Batista-Taran Shuck Gutierrez and Baralt 2013, p. 16; Odumeru and Ogbonna 2013, p. 358). Several managers use this approach to get high performance, but it is only efficient for a short time. However, there is transformational leadership, which entails the manager developing his or her followers to the extent that the juniors are ready to lead besides performing beyond the established goals (McCloskey 2015, p. 3). Transformational leaders tend to cultivate employee engagement owing to the way this style aids workers to perceive themselves as members of a larger group instead of as isolated individuals (Batista-Taran Shuck Gutierrez and Baralt 2013, p. 17). This change in perception allows for staff members to endorse the values and aims of the group thereby augmenting their intentions to optimally contribute (Kaiser Hogan and Craig 2008, p. 104). Empowering employees cultivates in them the belief that they can influence workplace outcomes besides making a difference (Babcock-Roberson and Strickland 2010, p. 315).


The Association between an Organization’s Actions and Employee Engagement


The process of realizing the outcomes of an engaged workforce is initiated by the practices that are instituted at the workplace (Vance 2006, p. 7). The policies that the organization upholds thereby affect the degree of engagement. Firstly, the design of jobs and tasks is imperative. The nature of work-related undertakings has undergone significant transformation. The onset of the 20th century saw the emergence of mass production, which resulted in many businesses using the scientific management tactic to design tasks (Taylor 2004, p. 1; Vance 2006, p. 10). This approach entailed simplifying functions that would be completed by workers that were highly specialized besides requiring narrow training. It may have been seen as efficient, but it resulted in unhappy workers owing to similar routine besides the jobs being machine-paced thereby denying them autonomy (Vance 2006, p. 10). In so doing, many workers became disengaged in addition to their commitment being eroded. It encouraged the consideration of the human element.


By the 1950s, various theories had been suggested, which were concerned with work motivation and job satisfaction relative to the design of jobs whereby their scope was broadened besides the tasks being made more challenging and complex (Vance 2006, p. 10). In 1970, the job characteristics model was introduced, and it spurred the attention to job design and the effect it had (Vance 2006, p. 10). The model suggested five motivational features, which are skill diversity, task meaning, task identity, feedback of performance, and independence (Behson Eddy and Lorenzet 2000, p. 170; Boonzaier Ficker and Rust 2001, p. 15; Debnath Tandon and Pointer 2007, p. 814). Occupations with such elements cultivate engagement in the personnel. Further research has revealed that the social characteristics associated with a job have a positive relationship with engagement and commitment (Vance 2006, p. 10). Introducing more motivational elements is bound to augment satisfaction (Morgeson and Humphrey 2006, p. 1334). Current research is focused on the way further enrichment of jobs elicits proactive work behaviours, and it has been discovered that engagement can be amplified through ensuring that jobs are characterized as meaningful, autonomous, offer variety, and encourage co-worker support (Vance 2006, p. 11).


Secondly, there is recruitment, which allows for the filling of positions when additional labour is determined to be necessary (Gusdorf 2008, p. 1). External recruitment can be done, which entails appealing to job candidates that are currently not in the employ of the organization (Breaugh 2008, p. 104). If the business has come up with roles that are engaging, it would be wise to include the attractive aspects of this position in the promotion, which can comprise minimal supervision, challenging assignments, and a team environment that is highly skilled (Vance 2006, p. 11). It should also be communicated that significant dedication will be rewarded with competitive pay packages, flexible working hours, and great prospects for learning and career advancement. Additionally, internal recruitment is also beneficial since upgrading existing personnel to desirable jobs is bound to amplify their engagement and commitment (Vance 2006, p. 11). Filling positions from inside the business is prudent since it communicates to the workers that management is ready to reciprocate their commitment (DeVaro 2016, p. 237).


Thirdly, there is employee selection, which entails looking for the person with the highest compatibility with the organization (Sekiguchi 2004, p. 182). If the right people are chosen, then these individuals do their tasks smoothly besides experiencing fewer performance issues thereby bringing about engagement (Vance 2006, p. 12). Enhancing commitment through this process is possible through identifying the candidates with the best fit, which can be confirmed through various candidate-assessment tactics (Dawley Houghton and Bucklew 2010, p. 243). The candidates that go on to get employed not only feel good about emerging the winners, but they also characterize the entity as careful and capable for having chosen them (Vance 2006, p. 13). A positive impression is an excellent motivator for a long-term commitment.


An additional action is that of training and development, a process that entails improving the effectiveness of the individuals in an organization in addition to facilitating the learning of new skills to enable personal growth (Aguinis and Kraiger 2009, p. 452). The way this process is managed, it facilitates the creation of an employer-employee relationship, and appropriate handling increases engagement and commitment. Another practice is that of compensation. There are different compensation components, which may encourage engagement (Vance 2006, p. 14). Furthermore, it is essential to institute distributive and procedural justice. Organizations need to ensure that they are social situations, which are consistent and predictable, especially when it comes to the way rewards are distributed (Saks 2006, p. 606). If employees perceive the business to be just, it increases their feeling obliged to do the same.


Research Gap


The importance of employee engagement has been a recurrent research topic. Conversely, no researcher has attempted to quantify this significance by comparing the performance and productivity numbers before and after an engagement program was instituted at a workplace.


Methodology


Research Objective


This research is preoccupied with pinpointing the effect of organizational behaviour towards employee engagement on company performance and productivity. Therefore, the end result of the approach used in this study is a paper that manages to illustrate the link between a corporate culture and the engagement levels of its personnel besides demonstrating the way this association affects the company.


Philosophical Stance


This realization of the research aim is founded on some philosophical assumptions. Relative to ontology, the study is based on the belief that there is a correlation between organizational behaviour, and it can be described as a distinct and tangible reality, which has remained somewhat constant at the workplace over the years. Regarding epistemology, the assumption is that knowledge has an inherent characteristic, which means that the link that this paper wishes to establish can be verified in addition to allowing for generalization. Concerning axiology, the research was value-free whereby the gathering of the data was not influenced by the investigator’s outlook on the topic.


Research Design


The conduction of this research was made possible through using a desk research methodology, which was complemented by the use of case studies. This study was only preoccupied with using secondary data to gain a better comprehension regarding how organizational behaviour encourages employee engagement thereby bringing about higher performance and productivity. The decision to do desk research was based on three primary reasons. It helps in identifying what has already been discovered. Looking at what people have done in the past is very helpful in getting a more precise picture concerning the research topic. Secondly, it would ensure minimum use of resources. There was no need to go to the field to collect more data as this information was already available on the internet thus saving time and manpower. Primary research often takes up months as it is necessary to recruit the respondents, issue them with questionnaires, conduct interviews, or engage in other measures. On the other hand, such undertakings would be skipped by concentrating on secondary data. Money was also not needed to facilitate any surveys or remunerate those that took up any roles in the research process. The advantage of this methodology is that the materials used for the study did not require parting with any cash as they were free. Thirdly, less effort would be invested into this project. A large data sample is essential in realizing a more enhanced understanding of the research topic, and if primary research was being conducted, an extensive amount of effort would be necessary. Nevertheless, with desk research, it is possible to utilize the vast data sets that others collected, which is also often done professionally.


Case studies were also used to complement the information that was collected. They tend to be popular in business-related concepts as they aim to evaluate particular issues within the organization setting. Using this research methodology was influenced by several reasons. Firstly, looking at the experiences that other entities underwent, it is possible to further the research aim. Analysing the real-life situations that organizations have faced gives rise to a more in-depth comprehension of the topic. Secondly, advancing the research aim entails answering the why and how questions, an aspect that the uses of cases can help in realizing. Thirdly, the research analysis would be credible since it was based on data, which was difficult to manipulate. The conduct of the entities or persons mentioned in the case were set in stone. Another vital reason is that the scenarios that were used availed contextual data regarding the research topic that was being tackled. Additionally, these cases were readily available on the internet thereby making it easy to realize the research aim. There are many credible websites that provide information on how various organizations have instituted employee engagement. Lastly, case studies offer detailed accounts, which illustrate the complexities of actual situations that may be difficult to capture through primary research methodologies.


Data Collection and Analysis Method


A variety of databases such as ABI and audit analytic are vast and reliable information thereby being an excellent tool for realizing the research aim. Though there was need of physically visiting a library, there are some sought-after knowledge was readily available online, an action that was instrumental in saving time as well. Owing to the extensive data present on the internet, a structured search was done to allow for the discovery of the necessary materials. Combinations of keywords were used to narrow the sources that were availed since single words would have led to having to sort out a myriad of irrelevant results. The references were then determined to be relevant by ensuring that they were dealing with a topic that was consistent with the research aim. The next step involved choosing the information that was the most suitable for this study. Then, the gathered material was processed to further the research aim.


It was decided that several case studies would be used to facilitate the formation of a clearer picture of the research topic. The realization of this objective is possible because the different contexts in each incidence availed the chance to review the phenomenon within and across settings. In so doing, the research gained the advantage of using different scenarios to predict parallel results. Consequently, the case studies to be used were purposively selected. This selection was made to ensure only the information-rich cases were utilized. The intention of each case study is to illustrate how organizational behaviour and employee engagement are correlated in addition to demonstrating its effect on performance and productivity. The generalization of each case to be assessed was based on the induction principle. This approach entails conceptualization of the data that is made available. The result is usually a philosophy, which comprises an array of the relevant concepts. Moreover, a descriptive strategy was employed with all scenarios as descriptions of the real-life occurrences were enough in accomplishing the research aim.


Every case that was used was based on the proposition that any entity whose organizational behaviour encouraged high engagement levels in its staff was the beneficiary of excellent performance and productivity. The presence of this feature acted as an excellent guide to the research. Only relevant data would be assessed besides averting the temptation of evaluating every bit of information that was apparent. The propositions would also be instrumental during analysis as they would be linked to the data revealed by the cases. The credibility of the findings was augmented in that the proposition was addressed and recognized due to the consistency with the data made available by the scenario. Moreover, these results were to be reported comprehensively in a way that allows the reader to visualize having been involved in the research in addition to determining if the findings are applicable in their unique setting.


Sampling Procedures


A particular inclusion criterion was employed for the desk research. Only credible sources were used in this study to ensure that its quality was not compromised. The references to be used would be the ones from 2000, and they were found to be pertinent as they were preoccupied with human behaviour, which tends to experience slow change. The search was done on Google Scholar to ensure that only academic literature was used in the desk research. Materials on this site tend to have undergone scrutiny from experts, which reduced the chances of using incorrect information for the study. The use of this database also speeded up the search. Any material that did not meet this inclusion criterion was not used. Additionally, the quality of the research was augmented by ensuring to acknowledge the authors of the ideas that were used. In so doing, the offense of plagiarism was averted.


A specific inclusion criterion was employed in the case study methodology. For any case to be considered, it had to comply with some requirements including being of a functioning unit, be contemporary, and aid in accomplishing the research aim. It was also important that all cases enabled the analysis of organizations, its personnel, or the established organizational behaviour. Additionally, cases would have to be bound by definition and context whereby they were to have significant contributions relative to the research aim. Any case study that failed to meet these requirements was not used in this paper.


Validity and Reliability


The validity of this research cannot be questioned since the desk research and case studies methodologies were actually instrumental in realizing the research aim. Additionally, this research satisfied internal consistency reliability since the same results can be achieved through different methods to identify the way organizational behaviour and employee engagement are correlated in addition to pinpointing their effects.


Ethical Considerations


Furthermore, the entire research was conducted appropriately to ensure that ethical standards were not contravened. All the information that was used in both methodologies was readily available on the internet. By the virtue that these materials are free on this platform, it can be deduced that it would not be wrong to use or analyse the data that is available. One only needs to cite the owner of the original information, an aspect that the research complied with.


Data Analysis / Findings / Results / Discussion


Analysis Approach

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