The impact of employee engagement on organization

Vidyalankar Institute of Technology
1
THE IMPACT OF EMPLOYEE ENGAGEMENT ON
ORGANIZATION'S PRODUCTIVITY
Submitted By
SUPRIYA PRAKASH DHURI
UNDER THE GUIDANCE OF
Prof. SHRABANI BHATTACHARJEE
A PROJECT SUBMITTED IN PARTIAL FULFILMENT
OF MMS TO
VIDYALANKAR INSTITUTE OF TECHNOLOGY
Wadala (East), Mumbai 400 037
July 2016

2
THE IMPACT OF EMPLOYEE ENGAGEMENT ON
ORGANIZATION'S PRODUCTIVITY
Submitted By
UNDER THE GUIDANCE OF
Prof. SHRABANI BHATTACHARJEE
A PROJECT SUBMITTED IN PARTIAL FULFILMENT
OF MMS TO
VIDYALANKAR INSTITUTE OF TECHNOLOGY
Wadala (East), Mumbai 400 037
July 2016
Signature of Faculty Guide Head of Department

3
DECLARATION
This is to declare that the study presented by me to Vidyalankar Institute of
Technology, in completion of the Master in Management Studies (MMS) under
the “THE IMPACT OF EMPLOYEE ENGAGEMENT ON ORGANIZATION'S
PRODUCTIVITY” has been accomplished under the guidance of Dr. Shrabani B.
Bhattacharjee.
.

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ACKNOWLEDGEMENT
My project on “THE IMPACT OF EMPLOYEE ENGAGEMENT ON
ORGANIZATION'S PRODUCTIVITY” has been a great learning experience. I
was exposed to the different areas of research in finance and gained valuable
experience, which I will always recall with a sense of satisfaction and pride.
This is to acknowledge Dr. Shrabani B. Bhattacharjee. Under whose guidance I
have been able to successfully complete this project and effectively come to a
very successful conclusion.
My sincere gratitude to Mr. Shrikant lokhande, Human Resource Manager
giving me a chance to complete my research project in the HR Department. I am
thankful to Mss. Prajakta Dhuri(Junior analyst at Ugam Solution) Mr. Sagar
Devle- IT Manager & Mr. Sachin Rawool- Dy. Executive at Maxspare Pvt Ltd. ,
Miss. Pratiksha Ghatge-HR at Wipro, and Mr. Rajesh Satve- Admin Head at
Wipro, for devoting time from their busy schedule and explaining how work is
being done in HRD.
I also like to extend our gratitude to all the employee who has submitted
responses on my survey, a conductive work environment and the much‐needed
inspiration to conclude the project in time and a special thanks to my parents who
are integral part of the project.
Thanking you.

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TABLE OF CONTENTS
SR NO PATICULARS
PG NO.
1
EXCECUTIVE SUMMARY
1
2
RESEARCH METHODOLOGY
3
3
COMPANY PROFILE
5
4
LITERATURE REVIEW
7
5
SCOPE OF THE STUDY
11
6
DATA ANALYSIS
12
7
IMPACT OF EMPLOYEE ENGAGEMENT
23
8
10 REASONS WHYYOU SHOULD INVEST IN EMPLOYEE
ENGAGEMENT ACTIVITIES 26
9
PROCESS OF EMPLOYEE ENGAGEMENT 31
10 EMPLOYEE ENGAGEMENT ACTIVITIES/INITIATIVES 33
11 CONCLUSION 35
12 RECOMMENDATIONS 37
13 LIMITATIONS OF THE STUDY 38
14 SURVEY(Appendix) 39

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EXECUTIVE SUMMARY
Today, Employee Engagement refers to ‘the extent to which employees
put discretionary efforts into their work, beyond the minimum to get the job done,
in the form of extra time, brainpower or energy’.
The Human Resources are the most important assets of an organization.
The success or failure of an organization is largely dependent on the caliber of
the people working therein. Without positive and creative contributions from
people, organizations cannot progress and prosper. In order to achieve the goals
or the activities of an organization, therefore, they need to recruit people with
requisite skills, qualifications and experience. While doing so, they have to keep
the present as well as the future requirements of the organization in mind.
Employee engagement is defined as, “a property of the relationship
between an organization and its employees. An "engaged employee" is defined
as one who is fully absorbed by and enthusiastic about their work and so takes
positive action to further the organization's reputation and interests.”
Employee engagement is based on trust, integrity, two way commitment
and communication between an organisation and its members. It is an approach
that increases the chances of business success, contributing to organisational
and individual performance, productivity and well-being. It can be measured. It
varies from poor to great. It can be nurtured and dramatically increased, it can
lost and thrown away.
Listening to employees' insights and suggestions for improvement will provide the
organization with valuable information that can be acted upon to increase the
level of employee engagement in the workplace. Employee surveys are an
important tool to solicit employee feedback. They can be administered internally
or externally as long as responses remain anonymous. Employee engagement
surveys provide a way to improve productivity and emotional commitment by
identifying the root causes of workplace issues.

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I continue on to the my main focus of the report-“THE IMPACT OF EMPLOYEE
ENGAGEMENT ON ORGANIZATION'S PRODUCTIVITY”
 Focus on how employee;
 Treats others with respect, and helps colleagues to perform more
effectively
 can be relied upon, and goes beyond the requirements of the job
 sees the bigger picture, even sometimes at personal cost
 keeps up to date with developments in his or her field
 looks for, and is given, opportunities to improve organizational
performance
 Focus Factors that Influence Engagement
 Work itself
 Interesting and Challenging Work
 Responsibility
 Autonomy
 Scope to use skills and abilities
 Opportunities for advancements
 Work environment
 Enabling
 Supportive
 Inspirational
 Organizational Climate
 Leadership
 Opportunities for Personal growth
 Opportunities to Contribute
I also attempted to gather more information on basic job functions of other
departments to have better understanding of the relation between them and the
HR department. It was commendable to see how wholeheartedly they welcomed,
acknowledged and appreciated new ideas and knowledge. I have provided few
recommendations based upon my understanding and knowledge.

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RESEARCH METHODOLOGY
Research design: This report is prepared on the basis of the primary data and
secondary data collection. This study analyses the factors of employee
engagement and performance.
Method used :
 Primary data:
o interacting with staff of the IT Company,
o face to face interaction,
o survey(Ref Appendix 1),
o practical observation,
o participation in process
 Secondary data:
o collecting from different sources like manuals
o website,

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OBJECTIVE OF THE STUDY
 Improve employee retention.
 Build a culture of high performance.
 Improve customer satisfaction.
 Reduce absenteeism.
 increasing revenue
 improving safety and wellness
 increasing the number of innovative ideas
 increasing the number of new hires that join the firm through employee
referrals

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COMPANY PROFILE
Ugam is a global leader in managed analytics that helps retailers, brands and
market research firms transform big data into valuable insights.
The company’s unique managed services offering combine a proprietary big data
technology platform with deep domain knowledge and analytics expertise to
empower clients to make decisions that improve their business. For retailers,
online marketplaces and brands, Ugam supports better merchandising, marketing
and channel management decisions through the use of analytics. For market
research firms and insight-based consultancies, Ugam offers a portfolio of
solutions including end-to-end research operations, technology transitioning
support, and data warehousing, visualization and reporting that enables them to
better serve their clients.
Maxspare Pvt Ltd With a strong emphasis on quality, precision and speed, max
spare ltd. (previously known as spareage seals limited) is a specialist in the field
of hydraulic, pneumatic and rotary seals and O-rings since 1959.
Over the years, With a penchant for R & D and an efficient, Nationwide sales
and service network, Max Spare has gone from strength to strength and become
the primary choice for innovative sealing solutions
Today, Max Spare has a customer base of over 8000 government organizations
and corporates that include the Indian Defence Organization (DRDO) and
Indian Railways, Steel Mills, Power Plant, Cement, and a variety of
organizations across different fields.
Wipro helps customers do business better by leveraging our industry-wide
experience, deep technology expertise, comprehensive portfolio of services and
vertically aligned business model. Our 55+ dedicated emerging technologies
‘Centers of Excellence’ enable us to harness the latest technology for delivering
business capability to our clients.
Wipro is globally recognized for its innovative approach towards delivering
business value and its commitment to sustainability. Wipro champions optimized
utilization of natural resources, capital and talent. Today we are a trusted partner

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of choice for global businesses looking to ‘differentiate at the front’ and
‘standardize at the core’ through technology interventions.
In today’s world, organizations will have to rapidly reengineer themselves and be
more responsive to changing customer needs. Wipro is well positioned to be a
partner and co-innovator to businesses in their transformation journey, identify
new growth opportunities and facilitate their foray into new sectors and markets.
Larsen & Toubro is a major technology, engineering, construction,
manufacturing and financial services conglomerate, with global operations. L&T
addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power,
Process Industries and Defence - for customers in over 30 countries around the
world.
L&T is engaged in core, high impact sectors of the economy and our integrated
capabilities span the entire spectrum of ‘design to deliver’. With over 7 decades
of a strong, customer focused approach and a continuous quest for world-class
quality, we have unmatched expertise across Technology, Engineering,
Construction, Infrastructure Projects and Manufacturing, and maintain a
leadership in all our major lines of business.
Every aspect of L&T's businesses is characterised by professionalism and high
standards of corporate governance. Sustainability is embedded into our long-term
strategy for growth.
The Company’s manufacturing footprint extends across eight countries in
addition to India. L&T has several international offices and a supply chain that
extends around the globe.

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LITERATURE REVIEW
Studies show stated that the beginning of an employee engagement is at the first
of his appointment to the organization’s services. It is a responsibility of leaders
to motivate workers commitment and engagement for job performance. In
contrast, other authors stated that engagement is for both managers and workers
and are responsible to achieve organizational goals and objectives.
“Engagement with the Organization measures how engaged employees are with
the organization as a whole, and by extension, how they feel about senior
management. This factor has to do with confidence in organizational
Leadership as well as trust, fairness, values, and respect-i.e. how people like to
be treated by others, both at work and outside of work”. Two factors were
distinguished for employee engagement: “Employee Satisfaction (which is the
level of contentment or happiness a person assigns to:
a) Attributes of their job/position,
b) Their organization, and
c) The general or overall way they feel about their employment) and Employee
Commitment (that implies how the pride people feel for their organization as well
as the degree to which they:
a) Intend to remain with the organization,
b) Desire to serve or to perform at high levels,
c) Positively recommend their organization to others, and
d) Strive to improve the organization’s results).
It was reported that the good time to identify the best-engaged employees is at
the time of their recruitment. Employee attitude and enthusiasm to work hard are
positive experience that will longer for their good performance. For some
employees are affected by different factors, which need special attention from the
leadership such as employee turnover than focusing only on organization
benefits.
Openness behaviour has been proved as one of the important elements that
motivate employee engagement regardless of their skills and knowledge. Thus
management needs to pay more attention on this factor while designing jobs and
services for their workers. While for some authors reveal that preparation for
responsible employees will help organizations to create positive background to

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advance employee abilities and aptitude to gain competitive advantage for
organizational goals engagement. Albrecht recommended that organizations
should encourage and keep employees well‐being, which is one of the factors
that contribute to their performance and commitment to achieve organizational
goals. He argued that when employee provided with open and supportive clear
autonomy to his background and career development will ensure engagement to
his jobs clearly aligned with organizational goals. Others indicated, “The various
drivers of work engagement and the incremental benefits accrued to
organizations due to effective commitment practices are clearly interpreted”. It
was proved that “workplace well-being has been defined as “a holistic approach
to creating high performance organizations through establishing the right
conditions to generate high levels of employee engagement.
This approach assumes that achieving high levels of organizational performance
depends on employees who are strongly committed to achieving the goals of the
organization, and who show this through their actions. This behavioural objective
is influenced in turn by levels of employee satisfaction, and by supportive,
respectful and healthy work environments. WWB is connected to physical health
and wellness but primarily emphasizes the social and psychological dimensions
of three inter-related elements – workplace, workforce, and the work people do.
Providing positive response to employees is another factor that is important to
motivate employee engagement and commitment in organization. However, it
was revealed in the same study “appropriate rewards and incentives to reinforce
employees’ desired behaviour are other promising job resources and that
“employee growth and opportunity for advancement is another significant job
resource . “Employers can set themselves up for continued success by focusing
on the key Engagement Drivers that make a positive impact on their workforce
and thus keep their employees engaged. The companies that have a highly
engaged workforce have risen to the challenge. They proactively respond to the
environment, competition, and changing workforce needs. They evolve, but stay
true to the values that made them successful and are well positioned for
continued success.
Studies indicated that solution to employee engagement for enterprises
performance is to provide employee with opening to share their ideas and
feelings. Also that managers and leaders are to accommodate employees

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concerns to maintain organization performance. Employee attitude is a positive
factor for their engagement to organization performance. The recognition of
employee attitude is an important element for competition to contribute to
organization profitability, Others reported that employee engagement and
organization performance, there is a need to share with them and demonstrate
ideas for strategic plan of the organization. The concept of employee attitude
described by authors indicated that employee engagement involves task
performance that is based on activity approaches and dispositional of the worker
himself. “You can measure a lot of things that have nothing to do with
performance and that don’t help a company implement a system that allows
managers to create change, “It’s great when companies try to improve employee
engagement and even better when they measure it. Measurement is the first step
companies must take before they can implement meaningful actions to improve
engagement. But if they don’t measure the right things in the right way, those
actions won’t matter and they won’t have a measurable impact on business
outcomes or the bottom line. Concentrating on employee engagement can help
companies withstand, and possibly even thrive, in tough economic times”. Others
considered that well performing employees are considered with high motivation
and values to ensure positive outcome in their organization. In addition
consideration of well-being of employees is an acknowledgement to his
contribution for organization performance. Engagements are a double side of
sharing information between managers and employees and find out the
weaknesses of employee that needs attention. Consideration of top management
to employees’ satisfaction is a lead towards organization performance.
Employee engagement is another factor proved to be attached to organizational
performance outcomes. With dedication and happiness, employees at their
workplace ensure that their organization attain a remarkable and visible
competitive advantage. Workers with higher engagement to their organizations
increase their retention and reduce staff turnover and absenteeism. Further,
organization result will be accountable on productivity, customer satisfaction,
saving costs, and profitability level will increase.
However, it was found that “measuring employee satisfaction and making
changes to increase employee satisfaction will not necessarily lead to increased
performance. In fact, the conditions that make many employees "satisfied" with

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their jobs are likely to frustrate high performing employees. Top performers want
to be challenged and to challenge the status quo. They embrace change, seek
out ways to improve, and want all employees to be held accountable for
delivering results. By contrast, low performing employees often cling to the status
quo, resist change, and avoid accountability whenever possible.
“The organizations that improve engagement during challenging times focus on a
number of factors that differentiate them in the marketplace. These factors
include focusing on long-term strategies, demanding measurable actions,
involving all stakeholders, understanding key employee segments, and
broadening the range of assessment tools and analytics. Employee expectations
and company responsiveness to internal and external environmental changes
have a lot to do with showing improvements, even when the market overall is
showing a decline.
Employee engagement is a vast construct that touches almost all parts of human
resource management facets we know hitherto. If every part of human resources
is not addressed in appropriate manner, employees fail to fully engage
themselves in their job in the response to such kind of mismanagement. The
construct employee engagement is built on the foundation of earlier concepts like
job satisfaction, employee commitment and Organizational citizenship behaviour.
Though it is related to and encompasses these concepts, employee engagement
is broader in scope. Employee engagement is stronger predictor of positive
organizational performance clearly showing the two-way relationship between
employer and employee compared to the three earlier constructs: job satisfaction,
employee commitment and organizational citizenship behaviour. Engaged
employees are emotionally attached to their organization and highly involved in
their job with a great enthusiasm for the success of their employer, going extra
mile beyond the employment contractual agreement.

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SCOPE OF THE STUDY
This sector providing more opportunities for job enhancement but retaining
employee are one of the most challenging issues for the IT industry, because of
high turnover and changes in demand. Understanding what drives employee
engagement illuminates the path leaders can take to enhance employee
retention, performance and motivation in their organizations.
Objectives of Study:
1. To measure employee engagement in IT sector.
The competition in IT sector growing day by day with these challenges to keep
employees in organization is more difficult than ever.
2. To identify impact of employee engagement on employee
productivity and motivational level in IT sector.
Data collection
Self-design questionnaire are prepared which contain questions related to
motivation and pride and performance and commitment. Primary data is collected
from the 5 different IT Company.
Data analysis
1 questionnaire is distributed in 5 different IT company of which 30 are returned
with response. The factors used in questionnaire are discussed below(Ref
Appendix 1).
1. Motivation - Enthusiasm and willingness to work shows degree of motivation.
2. Performance and commitment – Efforts of employee which leads to
achieving results is called performance.

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DATA ANALYSIS
The analysis of the data is done as per the survey finding. The data is
represented graphically in percentage.
The percentage of the people opinion were analyzed and expressed in the form
of charts have been placed in next few pages.
 How happy are you at Work Place? *
Sr no Option Ratio Responses
1 0-25% 7% 2
2 26-50% 30% 9
3 51-75% 43% 13
4 76-100% 20% 6
Interpretation:-
From the above,
43% of people said that they are Happy at work place.
20% of people said that they are fully satisfy and very Happy at work place.
Remaining 30% & 7 % of the people said that they are not much happy at work
place and they come under the ratio of 50 %.
 Would you refer someone to work?
1 Yes 53% 16
2 No 20% 6
3 May Be 27% 8
7%
30%
43%
20%
work place satisfaction
0-25%
26-50%
51-75%
76-100%

18
Interpretation:-
From the above, 53 % of the people said that they will refer others to work.
20% of people said that they will not refer working company to others.
27% of people said that they maybe refer others to work.
 Do you have a clear understanding of your career or promotion path?
Sr. No Option Ratio Responses
1 Yes 86.70% 26
2 No 13% 4
Interpretation:-
From the above, 87% of people said that they have clear understanding of your
career or promotion path
13% of people said that they don’t have clear understanding of your career or
promotion path.
87%
13%
0%
Yes
No
53%
20%
27%
Ratio
Yes
No
May Be

19
 Do you feel like co-worker’s give each other respect here?
1 Yes 87% 26
2 No 13 % 4
Interpretation:-
From the above, 87% of people said that they feel like co-worker’s give each
other respect. 13% of people said that they don’t feel like co-worker’s give each
other respect
 How frequently do you receive recognition from your manager?
1 Weekly 30 % 9
2 Monthly 26 % 8
3 Yearly 17 % 5
4 Never 27 % 8
Interpretation:-
From the above,
27% of the people were never receive recognition from manager
30% of the people were received recognition from manager on weekly base
26% of the people were received recognition from manager on Monthly base
17% of the people were received recognition from manager on Yearly base
87%
13%
Yes
No
30%
26%
17%
27%
Ratio
Weekly
Monthly
Yearly
Never

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 The last time you accomplished a big project, did you receive any
recognition?
Sr no Options Responses Percentage
1 Yes 16 53%
2 No 14 47%
Interpretation:-
From the above, 53% of the people were satisfied and received recognition.
From the above, 47% of the people were not received recognition.
 If you were to quit your job tomorrow, what would your reason be? *
Option Ratio Response
Lack of Career Advancement 53.30% 16
Negative Work Environment 23.30% 7
Underpaid or Unappreciated 23.30% 7
Difficult Co-Worker 16.70% 5
Company Instability 6.70% 2
Other 23.30% 7
Interpretation: 53.30 % employee feel they will quit job because of Lack of
Career Advancement.
53%
47%
recognition ratio
Yes
No
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Series1

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 What are the various non-monetary rewards your company offering
to your employees?
Option Ratio Responses
Flexibility 26.70% 8
Recognition 23.30% 7
Training 50.00% 15
Chance to Contribute 23.30% 7
Fringe Benefits 10.00% 3
Appreciation and recognition 33.30% 10
None of the above 13.30% 4
Other 3.30% 1
Interpretation:
From the above, 50 % employee feel they received training & 30 % Appreciation
and recognition as a non-monetary awards from company.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Series1

22
 What are the various monetary rewards your company offering to
your employees?
Salary or wages 33.30% 10
Bonus 26.70% 8
Financial incentives 10.00% 3
Promotion 33.30% 10
Profit sharing 6.70% 2
None of the above 16.10 % 11
Interpretation:
From the above, 33.33% employee feel they received salary or wages &
promotion as a monetary awards from company.
 What are the various fun and social activities carried out in your
company?
Establish a Fun Committee 40% 12
Have fun dress-up days 13% 4
CSR activity 10% 3
NGO visit 13% 4
Annual Party 70% 21
None of the above 20% 6
Other 7% 2
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Series1

23
Interpretation:
From the above, 70% employee feel they received Annual party & 40% Establish
fun activity as a Social activities from company.
 What are the various channels of communication between employees
and management?
Face-to-Face 76.70% 23
Mobile 20.00% 6
Written 6.70% 2
email, Internet, intranet and social media platforms 60.00% 18
None of the above 6.70% 2
Interpretation:
From the above, 76% employee feel they face to face & 60% email system for
communication from company.
0%
20%
40%
60%
80%AxisTitle
Axis Title
Social Activities
Series1
0.00%
20.00%
40.00%
60.00%
80.00%
Communication
Series1

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 How Organization motivate employee?
Creating a Friendly Work Environment 63.30% 19
Use food as incentive 13.30% 4
Institute casual dress days 26.70% 8
Recognizing and Rewarding Your Employees 36.70% 11
Developing Great Relationships in the Workplace 33.30% 10
Create social events 26.70% 8
Interpretation:
From the above, 63% employee feel they creating a Friendly Work Environment to
motivate employee from company.
63.30%
13.30%
26.70%
36.70% 33.30%
26.70%
Creating a
Friendly Work
Environment
Use food as
incentive
Institute casual
dress days
Recognizing
and Rewarding
Your Employees
Developing
Great
Relationships in
the Workplace
Create social
events
Motivation
Series1

25
ACTIVITIES AT UGAM SOLUTION

26
MAXSPARE PVT LTD

27
LARSEN & TOUBRO

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IMPACT OF EMPLOYEE ENGAGEMENT ON
PRODUCTIVITY
Employees who are engaged with their job and employer are more
productive because they are motivated beyond personal factors. They are more
focused and more motivated than their disengaged counterparts. This means
they work more efficiently and with the success of the organisation in mind.
Today employees want to have more opportunities and better living
conditions. But we are living in an uncertain, complex and highly competitive
business world. There are a lot of changes in technology, services, customer
demands and living style. How companies should compete and have a
sustainable growth and profitability in a globalized business world, this is a big
question for leadership.
Therefore employee engagement is a crucial issue for companies. It is an
investment we have to make for the privilege of future proofing our organization’s
operational excellence, organizational agility, productivity, systematic and
competitive innovation, organizational alignment and overall business
performance.
Therefore I want to summarize employee engagement:
Employee Engagement=Employee Motivation= Employee Performance=
Employee Productivity= Systematic Innovation = Growth & Profitability
=Customer Loyalty

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In other words, employee engagement shows the efficiency of employees
in expressing themselves cognitively, emotionally and physically during role
performances.
These are:
1- Productivity
If employees engage with their jobs and employers, they are more
productive according to researches. They work more efficiently to achieve a high
performance organization. If they are highly engaged they will output twice as
likely to be top performers.
Higher Engagement will create lower absenteeism, higher focus, morale,
trust and motivation. This will create increased productivity and efficiency.
2- Safety
Employee safety is another critical factor in obtaining higher engagement.
If employees are not engaged, they will focus less on their work and they will
make mistakes. This will create serious implications for industries in which safety
is an important factor for employees.
Human and financial cost of safety incidents will cause serious issues on
employee engagement and it will negatively affect productivity, product quality,
organizational alignment and customer performance.
3- Retention
It is evident that engaged employees are less likely to leave their job. Because
their emotional commitment is higher than disengaged employees. Higher
employee retention rate shows the impact of higher employee motivation, trust,
morale and effective organizational alignment. So that companies will keep and
improve their organizational knowledge and focus effectively on company
purpose to create a high performance organization in a superior commitment.
4- Customer Loyalty
I have to say that every person in the organization are customers. They can
recommend a business to others if they feel positive in the company. If they
engaged well they become more customer focused. They are brand
ambassadors. We are living in the world of social media, therefore we have to
have highly engaged employees who they produce quality products and services
and share their experiences in different social media platforms that we can’t

30
control everything. They will interact with customers and share their experiences
about company, products, services and culture. If employees are not engaged
well this will create failures in long-term company success. Higher Engagement
creates higher voluntary efforts. This improves client service and contributes
better customer experience. So that company will obtain increased customer
loyalty.
5- Profitability
Employee engagement has a positive effect on profitability. Because employees
are highly committed and focused in their works. So that employees will have
effective communication, collaboration, trust, recognition and hard work to
achieve the company purpose on time.
6- Competitive Innovation
Employee engagement is important to create an innovative culture in any
organization. If they are engaged they will work effectively, improve their work
continuously and create a systematic innovation culture that contributes to a
sustainable growth and profitability.
There is more and more convincing evidence that improving employee
engagement can significantly improve company performance across a number of
key areas, such as; profitability, productivity, customer satisfaction, innovation,
health and safety, sickness and absence, turnover and wellbeing.
But, in order to achieve that, your engagement efforts have to be aligned with
your overall business strategy. Implementing unplanned ideas and activities that
you think might help, without monitoring or measuring their impact, is a waste of
time and resources.

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10 REASONS WHY YOU SHOULD INVEST IN EMPLOYEE
ENGAGEMENT ACTIVITIES TODAY
In order to make the necessary changes to increase engagement in your
organization, you'll need to identify the reasons why your company should be
investing in employee engagement activities in the first place.
10 signs you should invest in employee engagement activities today.
1. Lack of Employee Retention.
Employee retention is important, as on boarding can be a lengthy, expensive
process. The less hiring you have to do, the better. This is why employee
engagement is so important. When employees don't feel engaged, they're more
likely to quit.
2. Poor Performance.
A drop in performance can result from many things, but it's commonly associated
with a lack of employee engagement. Engaged employees typically put forth as
much effort as possible to ensure quality performance, even if they're having a
rough day.
3. Dissatisfied Customers.
Keeping your customers happy is the most important thing you can do. No
business can survive without customers and clients, and the more you can do to
retain them, the better. When you have staffs that lack engagement, they usually
don't put in the extra effort to please your customers.
4. Constant Absenteeism.
Every employee may need to miss a day (or even a few days) of work due to
illness, important events, etc. When absenteeism becomes a regular occurrence,
however, you know there's something else at play. Constant absenteeism is
typically associated with a lack of happiness, engagement, or empowerment.
When this starts happening, you know you've got a real problem on your hands.
5. Poor Organization.
Organization is everything, especially in the digital realm. It makes perfect sense
that disengaged employees will have a hard time keeping up organization-wise.
When this occurs, meticulous details get mixed up, which is difficult to control
once it gets out of hand.

32
6. Interruption in Idea Generation.
The most successful businesses don't suffer from a lack of ideas. Ideas which
inevitably lead to solutions. Idea generation can quickly come to a halt, though,
even if a business has historically had no problems with this before. When your
well of ideas begins to dry up, the first and most important thing to do is pay
attention to your employees.
7. Ineffective Collaboration.
When employees collaborate, they have a better chance of coming up with new
ideas and solutions. Effective collaboration requires employees to be engaged in
what they do, however — it simply cannot work otherwise. If you notice your
employees are having trouble working together, it's important to step back and re-
evaluate the situation. If it's a question of employee engagement, it may be time
to start making some changes.
8. Little or No Initiative.
A manager's dream is an employee that takes true initiative, yet finding an
individual that fits this role is easier said than done. Even so, most organizations
have at least a few employees that are motivated to take things into their own
hands. Having this employee motivation results in a more productive workforce
and less stress on higher-level staff members. With a lack of engagement,
however, there will be little or no employee initiative.
9. Poor Communication Skills.
Communication at every level is extremely important and should never be
ignored. If you notice a breakdown in communication between employees,
managerial staff, or other members of your organization, you've got to act quickly
to pinpoint the problem. You'll usually find that the issue stems from employee
disengagement, in which case introducing employee engagement activities is a
great way to improve communication and get your organization back on track.
10. Lack of Clarity on Responsibilities.
No matter how impressive some employees are, there's always a
chance they'll lose clarity on what they're responsible for. This lack of clarity
should never be a recurring scenario. If you notice a disconnect that causes
issues of internal clarity, take note of whether or not your employees are showing
other signs of engagement problems ... and make any necessary changes

33
EMPLOYEE ENGAGEMENT ACTIVITIES
Involve employees in your business planning process
Every 6 months, or even quarterly, present the most important issues in your
company and the actions made to address those issues. Involve your team in
planning ahead, assessing opportunities and coming up with improvement ideas
for your business strategy by promoting transparency.
Encourage knowledge sharing in a creative way
Teams are oftentimes isolated within their own project and their own workspace,
that they have no idea what the rest of the company is doing. Create an open
sharing space, once every 2 months or so, where every team can present
updates on their project and key learning points. Teams will evolve much more
rapidly, using the knowledge shared and the different experiences on every
project.
Show them the money
Nothing builds trust like showing someone your financial statement. And that’s
exactly what you should do in your company.
Give your team a quick presentation of the financial state of your company, every
quarter or at the end of the year. Show them how everyone’s efforts are linked
together, set bold objectives for the next months and get everyone involved in
meeting those objectives. You’ll notice that this activity links back to the 1st one.
Encourage employees to take responsibility for the success of the company if you
want them to put in their discretionary effort.
Outdoor
Have your own Office Olympics where everyone can get involved and have fun.
Promote wellbeing and the benefits of a healthy lifestyle in a fun, competitive
way.
Get to know each other in a different environment and connect people with the
same interests. It’s a great chance to get some of those chair-numbed-muscles
going and bond in a friendly competition. Prizes and embarrassing photos are a
must.

34
Have a hack night
Break monotony with an ambitious working night. Set a clear objective, create
your own set of rules (breaks, music, snacks, etc.) and try to be as productive as
possible in just one night.
Create excitement about upcoming opportunities
Make sure you communicate upcoming opportunities on a regular basis. Get
employees excited and striving for what’s next. Do it in your internal newsletter,
face-to-face or during a general update meeting.
If they’re excited about what’s next, they’ll do their best and reply with a “No,
thank you” to those irritating poaching emails from your competition.
Keep in mind that a career processes should be driven by individual potential as
well as current opportunities.
Make on boarding fun
Have a scavenger hunt on boarding. Turn information that is usually considered
boring or useless into company trivia and learning how to use tools and systems,
such as the internal communication system.
Include other people in the game. For example, have some of the older
employees provide answers and get to know the new hires.
Create your own internal magazine
Create your internal employee-focused magazine with fun columns, news,
featured stories and opportunities. Who wouldn’t like to be featured on the cover
as Employee of the Month.
It can be an online magazine or a printed one. Or, it can be both, a monthly
online issue and a quarterly printed one.
The League of Extraordinary Managers
Managers are a key business component and an equally important engagement
driver.
Create a coaching program for managers and teach them to really care. Coach
them towards maximum contribution and satisfaction, align them with the
organization’s strategy, mission and values and show them how to recognize
attitude, effort and results.

35
I am my own hero
Encourage individuals to design and own their career paths, instead of relying on
the company or on their manager. Employees need to take initiative and set a
career goal for themselves.
Have people write their goal on a piece of paper. Put it in an envelope and close
it. Then, after 6 months or a year, give them the sealed envelopes back to see if
they’ve realized that goal.
For this activity, managers have a guiding role. They can understand and help
align employees’ aspirations with the organization’s career development point of
view.
Give back
Get involved in social and charity initiatives. Giving back creates a positive
mentality. It also fosters pride and loyalty.
Get the team together, have everyone pitch a cause and pick the one you want to
support. It’s important that you make it personal, that you make it count. You can
donate either time and involvement, or money, or both.
Usually, giving time is more rewarding than giving money, especially for gen Y
employees, who are highly oriented towards social involvement.

36
PROCESS OF EMPLOYEE ENGAGEMENT
5 Rules for Employee Engagement
 Clarity
 Opportunity
 Encouragement & Support
 Constructive Feedback
 Recognition & Growth
Research has proven that wholly engaged employees exhibit,
 Higher self-motivation.
 Confidence to express new ideas.
 Higher productivity.
 Higher levels of customer approval and service quality.
 Reliability.
 Organizational loyalty; less employee turnover.
 Lower absenteeism.
Prepare
&
Design
Employee
Engagement
survey
Result
Analysis
Action
Planning
Action
Follow
up

37
HR CALENDER – 2017
APRIL MAY
MO
3
10
17
24 MO 1 8
15
22 29
TU 4 11 18 25 TU 2 9 16 23 30
WE 5 12 19 26 WE 3 10 17 24
31
TH 6 13 20 27 TH 4 11 18 25
FR 7 14 21 28 FR
5
12 19 26
SA
1
8
15 22 29
SA
6 13
20
27
SU 2 9 16 23 30 SU 7 14 21 28
JUNE
MO 5 12 19 26
TU 6 13
20
27
WE 7 14 21 28
TH 1 8 15 22 29
FR
2
9 16 23
30
SA 3 10
17
24
SU 4 11 18 25
Monthly Meeting
Annual Function
Birthday party
Budget Meeting
Go-Green Earth day
Picnic
Shareyour view
Mother’s day
Blood Donation
Indoor and Outdoor Game
Star of The Month

38
EMPLOYEE ENGAGEMENT ACTIVITIES/INITIATIVES
o Family Day
o Outdoor Sports – Gully cricket, football, basketball, volleyball etc
o Face to Face with BU heads, functional heads - communication forum.
o Diwali celebrations
o Santa Carnival – Christmas celebrations
o Independence Day, Republic day – flag hosting.
o EID & Ramzan celebrations
o Ganesh Chaturthi – Dept wise aarti’s to be planned.
o Traditional Day
o Goggles day.
o Birthday anniversary celebrations
o Marriage Gift vouchers.
o Develop – an informal training session for sharing skills.
o Navratri celebrations - Dandiya event.
o Workshops for women like – make up, cookery show, weight loss/gain.
o Quiz competitions
o Toofan – sales day out.
o New year party
o childrens day celebrations/fancy dress competitions
o Singing - Antakshri competitions.
o Cubicle decoration competitions.
o Indoor games - carroms, chess, badminton, Table tennis.
o Food festival
o Essay competition - where the topic may be chosen from the Industry.
o Outbound training programs
o Yoga day- Yoga classes.
o Health Check-up.
o Blood donation camps.
o Cute baby contest – employees kids competition.
o Introduce fun board in your floor shop, so your employees can pin up their
Colleagues candid pics, posters, their paintings, hot news, fun news.

39
o Celebrate "One Thing Change day" wherein we have asked employees to
do one noticable change in them, it be their dress, style, voice tone,
greeting style etc.
o No vehicle day – Go Green.
o Onam Celeberation – Authentic south Indian food especially on this day
for employees.
o Holi celeberation.
o Organizations birthday celebrations. (date of commencement)
o Bulk Mailers - Thought for the day, did you Know, Birthday & anniversary
mailers.
Team building activities
Culture-building activities are great for generating a feeling of
belonging,but all organisations are building out of smaller teams who
can get on and work together.
Popular approaches include:
 Small team recreational activities, such as bowling, skating,
trips to the cinema
 Social activities, such as family gatherings and barbeques
 Community outreach activities such as volunteering and fund-
raising.

40
CONCLUSION
Result shows that mentioned employee engagement drivers affect the
motivation and performance of employees sector. There are several factors
which influence the employee performance and motivation in the organization but
this research consider the employee engagement only. Employee engagement
play an important role in achieving organizational objective, building effective
teams, healthy interpersonal relationships among co-workers and managers and
good working environment in the organization which enhance employee
motivation and leads to better organizational performance.
The findings from this study reveal that employee commitment for activities
and image of the company in the Industry sector, provision of fair rewards for
work, job satisfaction and availability of tools and resources in the Organizations
have strong and significant relationship. There is a very significant positive
relationship between Work life balance and provision of fair rewards for work,
between relationship and image of the company in the community. The results
show that there is very significant negative relationship of job description and
recognition of ideas/suggestions, importance to the individuals’ needs.
Also results show that job description has significant relationship with
peers or colleagues and refer to a friend or colleague. It is reflected from the
results that there is significant positive relationship between job satisfactions and
refer to friends or colleagues. There is significant relationship between work
assignment and provision of fair rewards and image of the company in the
community. Finally results indicate that there is negative significant relationship
between work stress and refer to a friend or colleague.
This study shows that despite the correlation between employee
engagement and job satisfaction; employee engagement and job assignment that
are the most important key factors for organization performance are not
correlated. The results reveal that job assignment is critical for engaging
employees to ensure organizations’ longevity and profitability.

41
However, the analysis was limited on the analysis of the non-financial
factors for organization performance, which were calculated based on such as
ratios in different ways of measuring performance focusing on financial factors.
From the study it is recommended that:
 Managers need to consider the staff and their job assignment to reduce
stress and increase factors of motivation for employee engagement
 There is a need to establish control mechanisms that involve financial
factors and non-financial factors in measuring performance for longevity of
enterprises.

42
RECOMMENDATIONS
Employees are the key assets to any organisation and if they are not given the
right space and time to make a perfect blend of work and fun at workplace, then
the sense of dis-engagement sets in the employees.
Therefore, organisations today should actively look forward to fulfil employee`s
expectations and thus, create an impact on the performance of employee, which
directly affects the organization’s performance.
Any organisation needs to recognize employees as its human capital. Employees
remain the most powerful contributors to any business and the drivers to its
competitive position. Workable engagement measures can combat the scarcity of
resources and overcome the constrained measures of supply. There remains a
pressing need for studies from emerging economies countries to employee
engagement levels. They needs to review the performing plans for the IT sector
by taking into consideration the factors that may influence employee behaviour.
Then these plans are to be articulated and communicated to insure consistency
in performance. More future research is required to focus on genuine HRM
practices and not focus only on personal individual needs' satisfaction. The
following HR policies are recommendable: implementation of performance-
related pay systems, effective and fair means of positioning and selecting
employees, designing employee feedback system in respect to leaders'
behaviour, and finally improving alignment between HR strategies and the
corporate strategy. However, by improving work policies and HR practices,
employees' retention and commitment may improve substantially.

43
LIMITATIONS OF THE STUDY
This research consider only limited variables which affect the employee
performance and motivation, future research could add some other variables that
affect employee performance and motivation like organization climate and
leadership in the organization. To get more accurate results more questions and
more respondents should be included. Future research should enlarge diversity
of data by adding respondents from other sectors also which will make significant
contribution to the results.

44
SURVEY IS ON IMPACT OF EMPLOYEE
ENGAGEMENT(Appendix 1)
1. Name of Employee: *
_________________________
2. Name of Company: *
_________________________
3. How Happy are You at Work Place? *
 0-25%
 26-50%
 51-75%
 76-100%
4. Would you refer someone to work? *
 Yes
 No
 Maybe
5. Do you have a clear understanding of your career or promotion path? *
 Yes
 No
6. If you were to quit your job tomorrow, what would your reason be? *
 Lack of Career Advancement
 Negative Work Environment
 Underpaid or Unappreciated
 Difficult Co-Worker
 Company Instability
7. What are the various non-monetary rewards your company offering to your
employees? *
 Flexibility
 Recognition
 Training
 Chance to Contribute
 Fringe Benefits
 Appreciation and recognition
 None of the above

45
8. What are the various monetary rewards your company offering to your
employees? *
 Salary or wages
 Bonus
 Financial incentives
 Promotion
 Profit sharing
9. What are the various fun and social activities carried out in your company? *
 Establish a Fun Committee
 Have fun dress-up days
 CSR activity
 NGO visit
 Annual Party
10.What are the various channels of communication between employees and
management? *
 Face-to-Face
 Mobile
 Written
 email, Internet, intranet and social media platforms
11. Do you feel like co-worker’s give each other respect here? *
 Yes/No
12. How frequently do you receive recognition from your manager? *
 Weekly
 Monthly
 Yearly
 Never
13. The last time you accomplished a big project, did you receive any
recognition? *
 Yes/ No

46
14. How Organisation motivate employee? *
 Creating a Friendly Work Environment
 Use food as incentive
 Institute casual dress days
 Recognizing and Rewarding Your Employees
 Developing Great Relationships in the Workplace
 Create social events

47
REFERENCES:
1. www.greatplacetowork.com
2. www.ddiworld.com

48

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