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Employee Engagement in Strategic Management - Term Paper Example

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The paper 'Employee Engagement in Strategic Management' emphasizes that employee engagement refers to the commitment that employees portray to the organization and its objectives. Research indicates that engaged employees may result in a 6% increase in the net profit margins…
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Employee Engagement in Strategic Management
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Download file to see previous pages An important milestone in strategic human resource management has to involve proper integration of “strategies, people, processes and systems towards achieving the organisational desired goals” (Binder 2006, 12). Moreover, Shuck and Herd (2012) asserted the need for emotional intelligence as one of the leadership competencies in achieving employee engagement towards organisational goals by ensuring employee satisfaction and commitment. An important aspect in the implementation of organisational strategy is that employees need to understand not only how they impact the organisational strategy but also the progress of the organisation towards its goals (Grey, 2013). In other words, considering employees’ behaviours are shaped by organisational strategic policies, ensuring active participation of employees in designing policies as an engagement plan would motivate employees towards meeting the organisational goals as explained by the goal-setting theory. Under the goal-setting theory, goals have been found to have a significant impact on employee behaviour and performance in organisations, and gaols setting is a credible way to ensure employee motivation as part of the engagement process (Locke & Lotham, 2002). Besides goal setting is a motivational factor, research has established significant relationships between “goal setting and organisational profitability” (Rauch 2007, 6). This theory might imply that the input of employees in the smoking ban policy in Grant Pharmaceuticals as a goal and policy would act as a motivation to employees. Employees will feel like part of the organisation and that their opinions in policy formulation counts, a strategic way to improve employee engagement in the organisation. For effective engagement in the company, all employees have to develop a perception of equality in the company. According to the equity theory, for people to be motivated towards productivity, there has to be a general perception of equitability (Al-Zawahreh and Al-Madi, 2012). As such employee engagement is a positive attitude among employees towards an organisation and its values.  ...Download file to see next pagesRead More
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