81-241-1-pb

8
International Journal of Social Sciences and Humanities Vol. 1, December 2012, pp. 8-15 AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE BANKING INDUSTRY Rejoice Thomas Assistant Professor, Department of Professional Studies, Christ University, Hosur Road, Bangalore, Karnataka. 560029. Email: [email protected] Abstract Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. Engagement at work was conceptualized by Kahn, (1990) as the ‘harnessing of organizational members’ selves to their work roles. In engagement, people employ and express themselves physically, cognitively, and emotionally during role performances. The second related construct to engagement in organizational behavior is the notion of flow advanced by Csikszentmihalyi (1975, 1990). Employee engagement is the thus the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two- way relationship between employer and employee.’ Thus Employee engagement is a barometer that determines the association of a person with the organization. The paper focuses on how employee engagement is an antecedent of job involvement and what should company do to make the employees engaged. The paper uses the Gallup 12 point questionnaire, twelve-question survey that identifies strong feelings of employee engagement and the steps which shows how to drive an engaged employee. 1. Introduction Employee engagement has been the focus of growing interest in recent years as research in positive organizational phenomena has expanded. Establishing an engaged workforce is now a high priority for many organizations in both the private and public sectors. Many employers feel that engaged employees outperform others by showing heightened interest in their work and being prepared to ‘go the extra mile’ for their organization. Employees also benefit, as some studies have shown that engaged employees see their work as more meaningful and fulfilling. Engagement is the extent to which employees put discretionary effort into their work beyond the minimum to get the job done, in the form of extra time, brain power or energy. Engagement is driven by an employee’s immediate experience of the organization. The factors that build or destroy engagement are driven by the unique situation of each organization and the combinations of factors needed to boost engagement are therefore different between organizations. Engagement as a psychological state has variously embraced one or more of several related ideas, each in turn representing some form of absorption, attachment, and/or enthusiasm. Operationally, the measures of engagement have for the most part been composed of a potpourri of items representing one or more of the four different categories: job satisfaction, organizational commitment, psychological empower- ment, and job involvement. Ellis and Sorenson (2007) point to the inconsistent way in which the term engagement has been applied by business leaders and human resource (HR) professionals over the last 20 years. They highlight the inconsistency of using the term to refer to attitudes or to employee perceptions of specific elements of their work environment or benefits, which they feel have ‘little’ to do with engagement. They endorse a two dimensional definition of engagement that defines an engaged employee as one who 1) knows what to do at work and 2) wants to do the work. It is their strong view that engagement should always be defined and assessed within the context of productivity, and that the two elements of engagement noted above are necessary for driving productivity. 2. About Banking Industry The banking system in India is significantly different from that of other Asian nations because of the country’s unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of illiteracy among a large percentage of its population but, at the same time, the country

Upload: cma-pushparaj-kulkarni

Post on 21-Oct-2015

5 views

Category:

Documents


1 download

DESCRIPTION

kil

TRANSCRIPT

Page 1: 81-241-1-PB

International Journal of Social Sciences and Humanities Vol. 1, December 2012, pp. 8-15

AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE

BANKING INDUSTRY

Rejoice Thomas

Assistant Professor, Department of Professional Studies, Christ University, Hosur Road,

Bangalore, Karnataka. 560029. Email: [email protected]

Abstract

Employee engagement is the level of commitment and involvement an employee has towards their organization and its values.

An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the

benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. Engagement at

work was conceptualized by Kahn, (1990) as the ‘harnessing of organizational members’ selves to their work roles. In

engagement, people employ and express themselves physically, cognitively, and emotionally during role performances. The

second related construct to engagement in organizational behavior is the notion of flow advanced by Csikszentmihalyi (1975,

1990). Employee engagement is the thus the level of commitment and involvement an employee has towards their organization

and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the

job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-

way relationship between employer and employee.’ Thus Employee engagement is a barometer that determines the association of

a person with the organization. The paper focuses on how employee engagement is an antecedent of job involvement and what

should company do to make the employees engaged.

The paper uses the Gallup 12 point questionnaire, twelve-question survey that identifies strong feelings of employee

engagement and the steps which shows how to drive an engaged employee.

1. Introduction

Employee engagement has been the focus of growing

interest in recent years as research in positive

organizational phenomena has expanded.

Establishing an engaged workforce is now a high

priority for many organizations in both the private

and public sectors. Many employers feel that engaged

employees outperform others by showing heightened

interest in their work and being prepared to ‘go the

extra mile’ for their organization. Employees also

benefit, as some studies have shown that engaged

employees see their work as more meaningful and

fulfilling.

Engagement is the extent to which employees put

discretionary effort into their work beyond the

minimum to get the job done, in the form of extra

time, brain power or energy. Engagement is driven

by an employee’s immediate experience of the

organization. The factors that build or destroy

engagement are driven by the unique situation of

each organization and the combinations of factors

needed to boost engagement are therefore different

between organizations.

Engagement as a psychological state has variously

embraced one or more of several related ideas, each

in turn representing some form of absorption,

attachment, and/or enthusiasm. Operationally, the

measures of engagement have for the most part been

composed of a potpourri of items representing one or

more of the four different categories: job satisfaction,

organizational commitment, psychological empower-

ment, and job involvement.

Ellis and Sorenson (2007) point to the inconsistent

way in which the term engagement has been applied

by business leaders and human resource (HR)

professionals over the last 20 years. They highlight

the inconsistency of using the term to refer to

attitudes or to employee perceptions of specific

elements of their work environment or benefits,

which they feel have ‘little’ to do with engagement.

They endorse a two dimensional definition of

engagement that defines an engaged employee as one

who 1) knows what to do at work and 2) wants to do

the work. It is their strong view that engagement

should always be defined and assessed within the

context of productivity, and that the two elements of

engagement noted above are necessary for driving

productivity.

2. About Banking Industry

The banking system in India is significantly different

from that of other Asian nations because of the

country’s unique geographic, social, and economic

characteristics. India has a large population and land

size, a diverse culture, and extreme disparities in

income, which are marked among its regions. There

are high levels of illiteracy among a large percentage

of its population but, at the same time, the country

Page 2: 81-241-1-PB

INTER. JOUR. SOC. SCI. HUM. DECEMBER 2012

has a large reservoir of managerial and

technologically advanced talents. Between about 30

and 35 percent of the population resides in metro and

urban cities and the rest is spread in several semi-

urban and rural centers.

In order for the banking industry to serve as an

instrument of state policy, it was subjected to various

nationalization schemes in different phases (1955,

1969, and 1980).

The Indian financial system comprises the following

institutions:

1. Commercial banks a. Public sector

b. Private sector

c. Foreign banks

d. Cooperative institutions

(i) Urban cooperative banks

(ii) State cooperative banks

(iii) Central cooperative banks

2. Financial institutions

a. All-India financial institutions (AIFIs)

b. State financial corporation’s (SFCs)

c. State industrial development corporations

(SIDCs)

3. Nonbanking financial companies (NBFCs)

4. Capital market intermediaries

About 92 percent of the country’s banking segment is

under State control while the balance comprises

private sector and foreign banks. A major problem

Public Sector Banks have to face once IT

implementation reaches its optimum level is staff

retention. While the private sector banks have been

recruiting trained and experienced IT professionals, it

may not be possible for Public Sector Banks to do

likewise. They will have to train their existing staff to

function effectively in the new environment. And

once the requisite skills are acquired by employees,

they may have trouble retaining staff. Public Sector

Banks can only allocate limited capital resources to

computerization. They will have to choose between

high cost of computerization at metro and urban

centers and low cost computerization at rural, semi-

urban branches

The number of bank management staff and

employees in India is vast (223,000 in SBI; 81,252 in

SBI Associates; 581,000 in nationalized banks;

57,241 in old private sector banks; 1,620 in new

private sector banks, and 13,510 in foreign banks

operating in the country). The total is 957,623, with

the number of staff employed in cooperative and

rural banks equally large. (The Indian Banking Sector

on the Road to Progress- G. H. Deolalkar)

Indian banks are highly unionized and productivity

benchmarks are not clearly established.

3. Conceptual and Theoretical Framework:-

3.1 Employee Engagement:

Kahn (1990:694) defines employee engagement as

“the harnessing of organization members’ selves to

their work roles; in engagement, people employ and

express themselves physically, cognitively, and

emotionally during role performances”.

The cognitive aspect of employee engagement

concerns employees’ beliefs about the organization,

its leaders and working conditions. The emotional

aspect concerns how employees feel about each of

those three factors and whether they have positive or

negative attitudes toward the organization and its

leaders. The physical aspect of employee engagement

concerns the physical energies exerted by individuals

to accomplish their roles. Thus, according to Kahn

(1990), engagement means to be psychologically as

well as physically present when occupying and

performing an organizational role.

Employee engagement has been defined as emotional

and intellectual commitment to the organization

(Baumruk 2004, Richman 2006 and Shaw 2005) or

the amount of discretionary effort exhibited by

employees in their job (Frank et al 2004).

Truss et al (2006) define employee engagement

simply as ‘passion for work’, The CIPD Annual

Survey report (2006c) defines engagement in terms

of three dimensions of employee engagement:

• Emotional engagement – being very involved

emotionally in one’s work;

• Cognitive engagement – focusing very hard whilst

at work; and

• Physical engagement – being willing to ‘go the

extra mile’ for your employer.

4. Literature Review

Employees who are engaged in their work and

committed to their organizations give companies

crucial competitive advantages—including higher

productivity and lower employee turnover. Thus, it is

not surprising that organizations of all sizes and types

have invested substantially in policies and practices

that foster engagement and commitment in their

workforces.

Highly engaged employees are 1.3 times more likely

to be high performers than less engaged employees.

They are also five times less likely to voluntarily

leave the company. “A positive attitude held by the

employee towards the organization and its values. An

engaged employee is aware of the business context,

and works with colleagues to improve performance

within the job for the benefit of the organization. The

Page 3: 81-241-1-PB

THOMAS: AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE BANKING INDUSTRY

organization must work to develop and nurture

engagement, which requires a two-way relationship

between employee and employer.” (Institute of

Employment Studies)

Saks (2006) argues that organizational commitment

also differs from engagement in that it refers to a

person’s attitude and attachment towards their

organization, whilst it could be argued that

engagement is not merely an attitude; it is the degree

to which an individual is attentive to their work and

absorbed in the performance of their role.

According to May et al (2004) engagement is most

closely associated with the constructs of job

involvement and ‘flow.’ According to Maslach et al,

six areas of work-life lead to either burnout or

engagement: workload, control, rewards and

recognition, community and social support, perceived

fairness and values. May et al’s (2004) findings

support Maslach et al’s (2001) notion of meaningful

and valued work being associated with engagement,

and therefore it is important to consider the concept

of ‘meaning’.

According to Saks (2006), a stronger theoretical

rationale for explaining employee engagement can be

found in social exchange theory (SET). SET argues

that obligations are generated through a series of

interactions between parties who are in a state of

reciprocal interdependence. Saks (2006) argues that

one way for individuals to repay their organization is

through their level of engagement. The Gallup

Organization (2004) found critical links between

employee engagement, customer loyalty, business

growth and profitability.

The Towers Perrin (2003) study of engagement

identified both emotions and rationality as core

components. They found that emotional factors are

linked to an individual’s personal satisfaction and the

sense of inspiration and affirmation they get from

their work and from being a part of their

organization. According to Robinson (2006),

employee engagement can be achieved through the

creation of an organizational environment where

positive emotions such as involvement and pride are

encouraged, resulting in improved organizational

performance, lower employee turnover and better

health.

Robinson et al (2004) model of the drivers of

employee engagement. West (2005) argues that when

individuals feel positive emotions, they are able to

think in a more flexible, open-minded way and are

also likely to feel greater self-control, cope more

effectively and be less defensive in the workplace.

Right Management (2006) defines true engagement

as every person in the organization understanding and

being committed to the success of the business

strategy, and that this goes beyond more than just

simple job satisfaction and incorporates aspects of

commitment, pride and advocacy about the

organization’s products and brand.

Meere (2005) describes three levels of engagement:

• Engaged - employees who work with passion and

feel a profound connection to their organization.

They drive innovation and move the organization

forward;

• Not engaged – employees who attend and

participate at work but are timeserving and put no

passion or energy into their work; and

• Disengaged – employees who are unhappy at work

and who act out their unhappiness at work.

According to Meere (2005), these employees

undermine the work of their engaged colleagues on a

daily basis.

5. Objectives of study

Different studies and theories have brought out

various factors as relevant in the context of employee

engagement of employees. The basic objective of this

study is to provide an analysis of these factors that

appear to be relevant in the context of employee

engagement of employees in the banking industry

under the Indian context.

Page 4: 81-241-1-PB

INTER. JOUR. SOC. SCI. HUM. DECEMBER 2012

These factors are analyzed mainly in terms of the

perceptions that the employees hold on such factors.

1. To understand the engagement of employees in

the Indian banking industry

2. The importance of employee engagement within

the Indian banking sector

6. Scope of the study

The scope of the study is confined to around 250

samples of the employees working in different banks

in the city of Bangalore. The study is aimed at

considering the level of employee engagement of the

employees in the Indian banking industry

7. Period of the study

The collection of the data began from the month of

September 2011 and was completed by January 2012.

The study covers a period of four and half months

which was utilized for collecting the primary data,

analysis of data and preparing the final repor

8. Research Methodology

The fundamental success of any research is purely

depends on construction of sound research design. A

research design is purely and simply the framework

or plan for a study that guides the collection and

analysis of the data. The researcher has adopted

descriptive research with convenience sampling

method without any stratification for the study. The

researcher considered 235 respondents for the study.

9. Sampling technique

• Universe :- employees working in the banking

industry in the age group of 23 – 45 years

• Sampling unit:- the sampling unit was limited to

the city of Bangalore

• Sample size:- 235 samples taken

• Sampling Design: - Convenience sampling method

without any stratification to obtain a uniform size of

respondents.

• Statistical tools: - the constructed schedules and

questionnaire were used for the survey purpose. The

questionnaire comprised of closed ended questions.

The structured questionnaires are used for individual

interviews and the focus group studies. The

185

35

15

0 50 100 150

Agreeing

DisAgreeing

Undecided

1) I care about the future of my company

INTER. JOUR. SOC. SCI. HUM. DECEMBER 2012

s are analyzed mainly in terms of the

perceptions that the employees hold on such factors.

To understand the engagement of employees in

The importance of employee engagement within

he scope of the study is confined to around 250

samples of the employees working in different banks

in the city of Bangalore. The study is aimed at

considering the level of employee engagement of the

employees in the Indian banking industry

The collection of the data began from the month of

September 2011 and was completed by January 2012.

The study covers a period of four and half months

which was utilized for collecting the primary data,

analysis of data and preparing the final report.

The fundamental success of any research is purely

depends on construction of sound research design. A

research design is purely and simply the framework

or plan for a study that guides the collection and

esearcher has adopted

descriptive research with convenience sampling

method without any stratification for the study. The

researcher considered 235 respondents for the study.

employees working in the banking

45 years

the sampling unit was limited to

Convenience sampling method

o obtain a uniform size of

the constructed schedules and

questionnaire were used for the survey purpose. The

questionnaire comprised of closed ended questions.

The structured questionnaires are used for individual

ws and the focus group studies. The

recorded observations of the individuals and the

group have been used while data interpretation.

• Statistical techniques :- statistical techniques like

drawing percentages for generalizations, use of table

for tabulating the primary , qualitative and

quantitative data and use of graphs for better

pictorial representation of the analysis has been

made use of.

• Plan of analysis: - primary information of both

qualitative and quantitative nature is obtained by

administering the questionnaire. The questionnaire

contains projective and direct queries and is

interpreted as per the set characteristics in the

concepts. The information obtained by observation

is also interpreted according to the set concepts. The

intention behind each and every direct and indirect

query has been dealt in the concept of each table.

10. Profile of Geographical area of study

The study was conducted in the city of Bangalore,

Karnataka. Bangalore is a cosmopolitan city with a

population of 6.52 million and the

83.91%. The official language of the state is

Kannada, though being a cosmopolitan city many

languages are spoken here.

11. Data collection

The data has been collected from primary and

secondary sources. Primary data was collected using

a questionnaire with 12 questions. The questionnaire

was administered to the employees working in the

banking industry to study

engagement level. In order to have adequate

representation of both the genders, effort was taken to

ensure that the questionnaire was circulated to both

the genders. The data was collected in a structured

manner. Secondary data was collected from previous

dissertations, research papers, journals, magazines,

text books and websites.

12. Analysis of study:

The data collected from the primary source were

entered and checked for transcription errors. Analysis

of data involves a number of closely related

operations with the purpose of summarizing the

collected data and organizing these in such a manner

that they will yield answer to the research questions.

185

200

1) I care about the future of my company

14918

68

0 50 100 150

Agreeing

DisAgreeing

Undecided

2) I am proud to work for my company

recorded observations of the individuals and the

group have been used while data interpretation.

statistical techniques like

drawing percentages for generalizations, use of table

the primary , qualitative and

quantitative data and use of graphs for better

pictorial representation of the analysis has been

primary information of both

qualitative and quantitative nature is obtained by

questionnaire. The questionnaire

contains projective and direct queries and is

interpreted as per the set characteristics in the

concepts. The information obtained by observation

is also interpreted according to the set concepts. The

and every direct and indirect

query has been dealt in the concept of each table.

Profile of Geographical area of study

The study was conducted in the city of Bangalore,

Bangalore is a cosmopolitan city with a

population of 6.52 million and the literacy level of

83.91%. The official language of the state is

Kannada, though being a cosmopolitan city many

The data has been collected from primary and

Primary data was collected using

uestionnaire with 12 questions. The questionnaire

was administered to the employees working in the

banking industry to study the employee’s

In order to have adequate

representation of both the genders, effort was taken to

questionnaire was circulated to both

the genders. The data was collected in a structured

Secondary data was collected from previous

dissertations, research papers, journals, magazines,

from the primary source were

entered and checked for transcription errors. Analysis

of data involves a number of closely related

operations with the purpose of summarizing the

collected data and organizing these in such a manner

r to the research questions.

200

Page 5: 81-241-1-PB

INTER. JOUR. SOC. SCI. HUM. DECEMBER 2012

32

25

0 50 100

Agreeing

DisAgreeing

Undecided

3) I have a sense of personal accomplishment from my job

128

100

7

0 50 100

Agreeing

DisAgreeing

Undecided

5) My company inspires me to do my best work

120

84

31

0 50 100

Agreeing

DisAgreeing

Undecided

7) I understand how my role relates to company goals and

objectives

164

54

17

0 50 100 150

Agreeing

DisAgreeing

Undecided

9) I am willing to put in a great deal of effort beyond what is

normally expected

82

98

55

0 20 40 60 80

Agreeing

DisAgreeing

Undecided

11) Employees have appropriate decision making authority

17540

20

0 50 100 150

Agreeing

DisAgreeing

Undecided

13) Company has a reputation as a good employer

170

35

30

0 50 100 150

Agreeing

DisAgreeing

Undecided

15) Ensuring access to a variety of learning opportunities

INTER. JOUR. SOC. SCI. HUM. DECEMBER 2012

178

150 200

3) I have a sense of personal accomplishment from my job

180

37

18

0 50 100 150

Agreeing

DisAgreeing

Undecided

4) My company is a good place to work

128

150

5) My company inspires me to do my best work

174

54

7

0 50 100 150

Agreeing

DisAgreeing

Undecided

6) I understand how my department contributes to company

success

120

150

7) I understand how my role relates to company goals and

145

74

16

0 50 100 150

Agreeing

DisAgreeing

Undecided

8) I am personally motivated to help my company succeed

164

150 200

9) I am willing to put in a great deal of effort beyond what is

120

80

35

0 50 100

Agreeing

DisAgreeing

Undecided

10) My company provides me with challenging work

98

100 120

11) Employees have appropriate decision making authority

90

74

71

0 20 40 60 80

Agreeing

DisAgreeing

Undecided

12) Employees have excellent career opportunities

175

150 200

13) Company has a reputation as a good employer

10052

83

0 20 40 60 80 100

Agreeing

Undecided

14) Employees have resources needed to perform jobs in high

quality way

170

150 200

15) Ensuring access to a variety of learning opportunities

60

82

0 20 40 60 80

Agreeing

DisAgreeing

Undecided

16) Consulting employees before making decisions that affect

them

Number of Employees

180

200

200

6) I understand how my department contributes to company

200

8) I am personally motivated to help my company succeed

150

90

100

100 120

14) Employees have resources needed to perform jobs in high-

93

80 100

16) Consulting employees before making decisions that affect

Number of Employees

Page 6: 81-241-1-PB

THOMAS: AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE BANKING INDUSTRY

After the analysis from the study:

It was found that about 79% of the employees cared

about the future of the company, around 64%

proud to work for the company and around 76% have a

sense of personal accomplishment from my job.

8074

70 72 74 76 78

Agreeing

DisAgreeing

Undecided

17) I speak highly of this organization to my friends

15950

26

0 50 100 150

Agreeing

DisAgreeing

Undecided

19) This organization is known as a good employer

2025

0 50 100

Agreeing

DisAgreeing

Undecided

21) I am proud to tell others I am part of this organization

7847

0 20 40 60 80

Agreeing

DisAgreeing

Undecided

23) I find that my values and the organization's are very similar

2025

0 50 100

Agreeing

DisAgreeing

Undecided

25) I try to help others in this organization whenever I can

55

0 20 40 60

Agreeing

DisAgreeing

Undecided

27) I volunteer to do things outside my job that contribute to

the organization's objectives

120

30

85

0 20 40 60 80 100

Agreeing

DisAgreeing

Undecided

29) I really care about the future of my company

THOMAS: AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE BANKING INDUSTRY

It was found that about 79% of the employees cared

about the future of the company, around 64% were

proud to work for the company and around 76% have a

sense of personal accomplishment from my job.

Most of the employees in the banking industry around

77% feel that their company is a good place to work.

Around 55% of them feel that the company inspir

them to do good work.

80

81

80 82

17) I speak highly of this organization to my friends

18040

15

0 50 100 150

Agreeing

Undecided

18) I would be happy for my friends and family to use this

organization's products/services

159

150 200

19) This organization is known as a good employer

10080

55

0 20 40 60 80 100

Agreeing

DisAgreeing

Undecided

20) This organization has a good reputation generally

190

150 200

21) I am proud to tell others I am part of this organization

9074

71

0 20 40 60 80

Agreeing

Undecided

22) This organization really inspires the very best in me in the way

of job performance

110

100 120

23) I find that my values and the organization's are very similar

12564

46

0 50 100

Agreeing

DisAgreeing

Undecided

24) I always do more than is actually required

190

150 200

25) I try to help others in this organization whenever I can

1753030

0 50 100 150

Agreeing

DisAgreeing

Undecided

26) I try to keep abreast of current developments in my area

95

85

80 100

27) I volunteer to do things outside my job that contribute to

10643

86

0 20 40 60 80 100

Agreeing

DisAgreei…

Undecided

28) I frequently make suggestions to improve the work of my

team/department/service

120

120 140

29) I really care about the future of my company

12535

75

0 20 40 60 80 100

Agreeing

Disagreeing

Undecide

30) Performing my job is so absorbing that I forget about

everything else

THOMAS: AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE BANKING INDUSTRY

Most of the employees in the banking industry around

77% feel that their company is a good place to work.

Around 55% of them feel that the company inspires

180

200

18) I would be happy for my friends and family to use this

100 120

20) This organization has a good reputation generally

90

80 100

22) This organization really inspires the very best in me in the way

150

175

200

26) I try to keep abreast of current developments in my area

120

28) I frequently make suggestions to improve the work of my

125

120 140

Page 7: 81-241-1-PB

INTER. JOUR. SOC. SCI. HUM. DECEMBER 2012

62% of the employees are personally motivated to help

their company succeed and 70% of the employees are

willing to put in a great deal of effort beyond what is

expected from them.

Some drivers of engagement were also found during

the study:

- A two-way relationship between the employer and

employee

- The importance of the individual being able to align

themselves to the products, services and values of the

organization

- The ability of the organization to communicate its

vision, strategy, objectives and values to its staff so that

they are clearly understood

- Management give staff sufficient ‘elbow room’ and

autonomy to let them fulfill their potential

- The employer is highly effective at engaging in two-

way communication with its staff, in particular

encouraging upward communication

- The key role of the immediate line

manager/supervisor is recognized as one of the most

important conduits to achieving effective employee

engagement.

Few outcomes of engagement:

- Staff is able to get ‘involved’ in the organization and

feel that they are genuinely participating and

contributing to its performance

- Staff has a pride in their organization and endorses it

as a place to work and do business with people outside

the organization

- Staff demonstrates real commitment to their job and

the organization and is prepared to ‘go the extra mile’.

Few methods to increase employee engagement:

Learning cafes – short, sharp interactive sessions on

key issues, designed to get people doing things

differently. Deliberately high-level but a good way of

getting people’s input and involvement.

• Work mats or learning maps – great ways of getting

everyone discussing issues based around one large

sheet of paper. They get people physically as well as

emotionally involved.

• Games – A fun, entertaining way to get people

engaged in an issue. Need to be carefully developed to

hit the right mark.

• Workouts – Working sessions designed to work

through and resolve issues. Attendees normally present

recommendations to leaders and are empowered to take

action or make changes.

• Appreciative enquiry – A great way of framing issues

so that what you focus on is doing more of what you do

well, rather than trying to address areas of weakness

• Open space technology – An open and involving way

of running meetings, large and small. Not everyone’s

cup of tea but very powerful when used in the right

context.

• Digital storytelling – A means of using the latest

desktop technology to get teams to engage in the

creating the future by creating their own compelling

story. The likes of Coca-cola, IBM and the BBC have

already used it successfully.

• Forum Theatre – A different take on role-playing

where actors play out scenarios under the direction of a

team of employees. Great for solving issues around

communication, conflict, customer service and working

more effectively together.

13. Limitations of study

The study was confined to only 235 samples. The

study covers only a few banks and the size of

employees operating from the city of Bangalore.

The sample size of companies and employees may

not be large enough to represent the unknown size

of the universe.

14. Conclusion

Engaged employees lead to increased productivity,

retention, customer loyalty and profitability. Savvy

organizations focus on both the lead and lag

indicators of business success, so business leaders

need to know about engagement levels in the same

way they need to know about other critical

management information, such as financial,

productivity and customer data.

Robust, business-oriented measurement and

analysis is required to identify the key drivers of

engagement for your organization. Key insights

are provided when organizations know whether

employees are engaged to both the jobs that they

do and the company that they work for. This

knowledge enables organizations to predict

behavior and its impact on key business metrics.

Measurement without action can do more harm

than good. Simply surveying for the current

engagement level and then doing nothing with that

information often leads to employees feeling that

they aren’t being heard, which in turn can

negatively impact morale and trust levels.

Identifying and analyzing engagement levels and

the drivers of success is the first step.

The real challenge is in equipping your business to

act and ensuring that change is embedded in your

culture so that your workforce remains focused

and aligned to the business strategy.

An engaged workforce is the key to sustained

competitive advantage and accelerated business

performance.

Reference:

Page 8: 81-241-1-PB

THOMAS: AN EMPIRICAL STUDY ON EMPLOYEE ENGAGEMENT OF EMPLOYEES IN THE BANKING INDUSTRY

Welch, J., & Welch, S. (2006, May 8). Ideas the Welch

way: How healthy is your company?

BusinessWeek, 126.

Ramsay, C. S., & Finney, M. I. (2006). Employee

engagement at Intuit. Mountain View, CA: Intuit

Inc.

Ramsay, C. S. (2006, May). Engagement at Intuit: It’s

the people. In J. D.

Kaufman (Chair), Defining and measuring employee

engagement: Old wine in new bottles? Symposium

conducted at the Society for Industrial and

Organizational Psychology 21st Annual

Conference, Dallas, Texas.

Robinson, D., Perryman, S., & Hayday, S. (2004). The

drivers of employee engagement. IES Report No.

408. Brighton, UK: Institute for Employment

Studies.

Kahn, W. A. (1990). Psychological conditions of

personal engagement and disengagement at work.

Academy of Management Journal, 33, 692-724.

Katz, D., & Kahn, R. L. (1978). The social

psychology of organizations (2nd ed). New York:

John Wiley & Sons.

Van Maanen, J. (1976). Breaking in: Socialization to

work. In R. Dubin (Ed.), Handbook of work,

organization, and society (pp. 67 – 130). Chicago:

Rand McNally & Co.

Abrahamson, M., & Anderson, W. P. (1984). People’s

commitments to institutions. Social Psychology

Quarterly, 47, 371-381.

Cohen, A. (2003). Multiple commitments in the

workplace: An integrative approach. Mahwah, NJ:

Lawrence Erlbaum Associates.

Meyer, J. P., & Allen, N. J. (1991). A three-component

conceptualization of organizational commitment.

Human Resource Management Review, 1, 61-89.

Meyer, J. P., Becker, T. E., & Vandenberghe, C.

(2004). Employee commitment and motivation: A

conceptual analysis and integrative model. Journal

of Applied Psychology, 89, 991-1007.

Robinson, D., Perryman, S., & Hayday, S. (2004). The

drivers of employee engagement.

IES Report No. 408. Brighton, UK: Institute for

Employment Studies.

Roberts, D. R., & Davenport, T. O. (2002). Job

Engagement: Why It’s Important and How To

Improve It. Wiley Periodicals, Inc, 21-29.

Gonrig, M. P. (2008). Customer loyalty and Employee

Engagement: An Alignment For Value. Journal of

Business Strategy, 29, 29-40.

Seijts, G. H., & Crim, D. (2006). What Engages

Employees the Most, or the Ten C’s of Employee

Engagement. Ivey Business Journal, March/April,

1-5.

Attridge, M. (2009). Employee Work Engagement:

Best Practices For Employers. Research Works:

Partnership for Workplace Mental Health, 1, 1-11.

Saks, A. M. (2006). Antecedents and Consequences of

Employee Engagement. Journal of Managerial

Psychology, 21, 600-619

Robinson D. Perryman S. Hayday S. (2004). The

Drivers of Employee Engagement. IES Report

408.

Gunter B. Furnham A. Biographical and Climate

Predictors of Job Satisfaction and Pride in

Organisation. The Journal of Psychology.

Mathieu, J. E., & Zajac, D. M. (1990) A Review and

Meta-Analysis of the Antecedents, Correlates and

Consequences of Organizational Commitment.

Psychological Bulletin, 108, 171-194.