Employee Engagement as a Performance Measure in Institutions - Research Proposal Example

?RESEARCH PROPOSAL: THE RELEVANCE OF EMPLOYEE ENGAGEMENT INDICES AS A PERFORMANCE MEASURE AND INDICATOR IN S Instructor’s name Name of Institution Date Introduction Employee engagement is a crucial element that influences operations in most institutions. It facilitates democratic participation and administration of resources, for example, human resources that enhances morale. Managers are obligated to formulate superior employee engagement procedures that include adoption of structured lines of communication. This is to facilitate communication and formulation of superior performance policies that focus on the participation of everyone. Employee engagement remains a hot issue with most professionals posting diverse opinion on its suitability in measuring performance in institutions. One school of thought reports that employee engagement indices criteria form a fundamental element that provides relevant incentives for measuring performance. It acts as a scorecard guideline that measures the satisfactory level of employees and consumers in service delivery. However, another school of thought faults its use since it fails to provide clear benchmarks that can be applied to facilitate credible measurement of performance. Ideally, employees hold the requisite capacity of influencing performance in institutions (Macey, Schneider & Barbera, 2009, p. 224). To ensure superior innovation and creativity in product development, proper employee engagement is essential. It ensures adequate sharing of ideas and formulation of policies with innovative ideals. It is crucial to note that, employee performance can be achieved when their morale is enhanced through adequate engagement in diverse aspects. Over the past two decades, the term employee engagement has gained increased popularity. The proven positive outcomes of the practice of employee engagement have made organizations to develop the engagement culture in the work environment (Bakker and Leiter, 2009). There is a sizeable quantity of work that has been written in respect to the subject of employee engagement. Different professions have discussed this subject based on their particular contexts of their work environments. What has emerged from most of the discussions regarding the subject is that employee engagement is a common and important tool for employees of all types (Harter et al, 2002). Most of the previous studies on this subject have addressed a number of aspects that are related to it; others have been very general, while others have addressed the particular aspects relating to the subject (Attridge, 2009). Over the years, management practitioners and management scholars have reiterated the need of coming up with the actual measures and indicators of specific management practices in order to evaluate their relevance (Markos and Sridevi, 2010). It is in the light of this view that it is important to evaluate the relevance of employee engagement indices as a performance measure and indicator in institutions. This evaluation will be fundamental in establishing how relevant these indices are, and whether there is need of changing them in order to make them more relevant. This paper evaluates the imperativeness of employee engagement as a performance measure and advancement of cordial relations in business institutions. Background The fact that modern business demands more efficiency and higher productivity than in the past cannot be disputed. This situation has come about as a result of various factors that affect the business environment (Ologbo and Saudah, 2011). These factors include technological advancements, increased competition, and heightened customers and shareholders’ expectations among others. Organizations are making a lot of efforts to improve their performances in order to remain competitive, make more profits and survive in the turbulent business environment. Several studies have shown that one of the critical ingredients of organizational success is employees (Harter et al, 2002). More satisfied employees can significantly contribute to workforce productivity and stability compared to less satisfied ones. While this aspect has been proven to be critical, studies have shown that there is more than ensuring employees’ satisfaction that can lead to workforce productivity and stability (Mone and London, 2010). The modern business environment has become more competitive and global and simply stable and satisfied employees are not enough to contribute to the desired high business performance. Markos and Sridevi (2010) note that stable and satisfied employees may just meet the set work demands, but may not result to highly improved performance and success of the organization. Therefore, in order for institutions to effectively compete, they should go beyond satisfaction by ensuring that their employees are inspired towards applying full capabilities and potential to their work (Saks, 2006). This is because failure to do so would mean that part of the employees’ valuable resources is not available to the institutions. Employee engagement ensures that employees are not simply stable and satisfied, but also full of enthusiasm, take responsibility for their own development, dedicated and energetic to what they do, show initiative at work, and strive for quality performance and quality (Mone and London, 2010). This will ensure that the organization gains competitive advantage and also stay competitive. The demonstrated importance of employee engagement has been the reason why the subject has received recognition among management practitioners and in the management literature, and has gained increasing prominence among many researchers (Bakker and Leiter, 2009). The essence of employee engagement is proven by numerous literatures on the subject, most of which have shown that an engaging employment environment is rewarding to the organization (Attridge, 2009). This has made many organizations to make the practice of employee engagement to be their top priority. To further demonstrate the importance of employee engagement, it has been argued that the ability to engage the employees is going to be one of the main organizational battles in the coming years. This argument is informed by the demonstrated importance of employee engagement (Saks, 2006). Also, the argument has been informed by the realization among managers that it is hard for organization to build successful employee engagement within a particular employees’ group and in work situation. This challenge is much greater when the knowledge regarding the specifics of employee engagement is inadequate or is missing (Ologbo and Saudah, 2011). Objectives To ascertain the relevance of engagement indices in improving cordial relations between employees and employers To establish the factors that improve good relationship between employees and employers To evaluate the relevance of engagement indices as a performance measure in institutions To establish the influence of employee engagement in enhancing productivity and efficiency in institutions To establish whether employee engagement contribute to employees’ wellbeing Definition Employee engagement indices provide institutions with relevant capacity to focus on diverse factors that hinder employee performance and coordination with employers. It is coordinated through a survey questionnaire that identifies workers efforts and enthusiasm in execution of activities. Evidently, inferior relations between employees and employers hold far reaching effects on performance in institutions (Macey, et al, 2009, p. 229). It may results to dismal performance or reduced output, low working morale and increased worker turnover that can severely influence productivity in corporations. According to Macey, et al, (2009, p. 225), superior engagement through adoption of excellent communication channels is vital in boosting understanding in institutions. Engagement fosters idea formulation and coherence at work that defines team spirit. This is vital since team spirit is an essential element that drives execution of activities based on strong shared norms and objectives. Consequently, engagement between employees and employers contributes in performance measurement together with other performance parameters. It is significant to state that poor worker engagement with employers influences individuals’ wellbeing at work and reduces output levels Problem Statement Employee engagement has become one of the very popular managerial concepts in the past two decades. The demonstrations of the importance of this concept among many of the organizations that have applied it have served to make other institutions to apply it in order to achieve success and high performance. Among the different business tools and models that organization use, employee engagement has proven to be one of the most effective in enhancing competitiveness and improving performance (Ologbo and Saudah, 2011). However, despite being used in many organizations, its relevance has not been ascertained accurately. Particularly, the relevance of employee engagement indices as a performance measure and indicator in institution has not been ascertained accurately and comprehensively. In cases where the indices have been ascertained, it has been scarcely done and the literature on the same cannot be located easily (Markos and Sridevi, 2010). The main aim of this paper is to evaluate the relevance of employee engagement indices as a performance measure and indicator in institutions. The paper ultimately seeks to contribute to the research regarding the employee engagement within the institutions. The research will move towards providing accurate and comprehensive evaluation of the relevance of employee engagement as a performance measure and indicator in institutions. The problem statement will be addressed through both the qualitative and quantitative study, which will aim at identifying the relevance of these indices in institutions. Also, the problem statement would be addressed in the study by establishing the influence of employee engagement in enhancing productivity and efficiency in institutions. Additionally, the study would address the problem statement by establishing whether employee engagement contributes to the wellbeing of employees or not. Research Questions The research questions for the investigation are the following: What is the existing level of employee engagement in the institution? How does employee engagement influence the relationship between the institution and employees? How does employee engagement enhance productivity and efficiency in institutions? In which ways does employee engagement contribute to the wellbeing of employees? Which areas of work-life need improvement in order to increase the levels of employee engagement in institutions? Feasibility of the Study This study is highly feasible; that is, most (if not all) of its objectives are achievable and most (if not all) of its research questions can be responded to. The high feasibility of this study is because of the fact that the subject of employee engagement has been widely-researched and therefore relevant and valuable information is available. Also, since most organizations know the importance of this subject, they will be willing to participate in the study in order to contribute towards the knowledge-gap that exists in the particular area that this study is focusing on (Attridge, 2009). Moreover, the study is feasible because it is relevant to the modern business environment, as well as there are numerous management practitioners and scholars who can be accessed easily in the course of the study. Relevance of the Topic and the Applicability of the Results Markos and Sridevi (2010) observe that several studies have shown that the number of employees who are actively engaged in their work is negligible; less than 1 in every 5 employees is engaged actively in their work. It is no doubt that a very low engagement rate that has the potential of greatly affecting the organizational performance and productivity. The low engagement rate represents a tendency for a crisis in the wellbeing and productivity of workers. While this result presents a grim picture on the nature of employee engagement in many organizations, it also serves as a wake-up call to institutions to enhance the employee engagement in order to benefit from its positive outcomes (Mone and London, 2010). It shows them that the level of engagement in their institutions may not be as good as they think it is. This paper will provide institutions with the update of the general level of engagement in institutions, as well as the information on relevance of employee engagement indices as performance measures and indicators. Moreover, this paper will provide with information regarding the particular aspects of employee engagement such as its impact on productivity and efficiency in institutions. In the situation when institutions have a better understanding of the relevance of employee engagement indices as performance measure and indicators, it will be easier for them to develop appropriate tools of employee engagement (Ologbo and Saudah, 2011). More particularly, the empirical study will show the accurate and comprehensive relevance of employee engagement indices and the factors that can make the indices to be more relevant. The answer to the research questions will serve to address the important issues relating to engagement employee indices as performance measures and indicators. While this study might have limited applicability for institutions as performance measures and indicators, it will still address several important aspects and significantly contribute to the body knowledge of the subject of employee engagement. Research Proposal – Literature Review Part The level at which engagement is promoted in institutions worldwide is differentiated. The organizational aims and objectives, the similar practices of competitors and the conditions in the internal and external organizational environment seem to influence the use of engagement indices as a measure of performance. The literature developed in this field has been reviewed for checking the potentials of engagement indices to play such role. Three articles have been chosen based on the following criterion: the relevance of these articles to the subject under examination. These articles are analyzed below focusing on their value for achieving the objectives of the proposed study. The first article is that of Siddhanta and Roy (2010). The specific article focuses on the relationship between employee engagement and productivity. The examination and the evaluation of this relationship is one of the study’s objectives. The article has been considered as important for the proposed study because of the following reasons: a) it helps to explore one of the study’s objectives, meaning especially the involvement of employee engagement in enhancing productivity in institutions; b) it presents a thorough analysis of the role of engagement within modern organizations. Also, engagement, as a concept, is explained in the context of its relationship with different aspects of the organization, such as ‘productivity, profitability and customer satisfaction’ (Siddhanta and Roy, 2010, p. 172). The article of Siddhanta and Roy (2010) is based on literature review, meaning that no empirical research has been conducted for exploring the issues discussed in the article. The authors have used ‘integrative literature reviews’ (Siddhanta and Roy, 2010, p. 172) aiming to address all issues related to the subject under examination. At the same time, the findings of the literature review are presented using ‘a descriptive study manner’ (Siddhanta and Roy, 2010, p. 172). This technique helps to secure the credibility of assumptions produced through the findings of the literature. Furthermore, the findings of empirical research conducted by large firms such as Gallup and Hay Group (Siddhanta and Roy, 2010, p. 172) are presented and discussed in combination with the findings of the literature review. The specific practice further increases the credibility and the validity of the authors’ assumptions on the issue under examination. Under these terms, the study of Siddhanta and Roy (2010) is valuable for understanding the current position of engagement as a factor influencing organizational performance. The article of Bhatla (2011) focuses on the effect of employee engagement on employee performance. In this way, the impact of employee engagement on organizational productivity is verified especially since employee performance directly influences the performance of the organization, either in the short or the long term. The specific study is also related with one of the objectives of the proposed study. More specifically, as already explained, the proposed study aims to show the potential influence of employee engagement in increasing productivity in institutions. The study of Bhatla (2011) shows how employee engagement can affect employee performance; as a result, the role of employee engagement in organizational productivity is also made clear. One of the most important advantages of the article of Bhatla, compared to other studies related to the specific issue, is the following one: Bhatla has emphasized not only the theoretical but also on the practical aspects of employee engagement. More specifically, in the study of Bhatla, all aspects of employee engagement are explored using the literature published in this field. Moreover, a series of graphs is used for explaining employee engagement as a concept used in the strategic decision making process. At the same time, the employee engagement practices used in ICICI and HDFC banks in Lucknow’ (Bhatla, 2011, p. 1) are presented. In this way, the use of employee engagement as a tool for promoting employee performance is effectively described. At the same time, the potential implications of employee engagement when used as a tool for enhancing productivity are revealed. In other words, the study of Bhatla (2011) provides an example of the actual form of employee engagement, as established in modern organizations; in the above study the strategies used in the two banks for promoting employee engagement are analytically presented. Because of the issues discussed above, the study of Bhatla has been considered as valuable for achieving one of this study’s objectives, meaning especially the involvement of employee engagement in the enhancement of organizational productivity. The fact that the study of Bhatla (2011) is not based on a survey or other method of empirical research does not seem to reduce the value of the above study; the use of extensive literature, followed by relevant graphs, and of practical examples related to the involvement of employee engagement in organizational performance, covers any potential gap resulted from the lack of empirical evidence gathered through primary research. One of the objectives of the proposed study is the establishment of the potential contribution of employee engagement to employees’ wellbeing. This objective can be achieved using the study of Robertson and Cooper (2009). The above researchers have tried to prove that employee engagement can influence the wellbeing of employees and vice versa. The study of Robertson and Cooper (2009) is based on the review of the literature related to this issue; still, the findings of empirical research conducted in this area are also presented and explained. In the particular study, emphasis is put on the following fact: employee engagement can influence the wellbeing of employees but at the same time, the wellbeing of employees ‘cannot be at high levels unless engagement is high’ (Robertson and Cooper, 2009, p. 328). The above condition of employees is described as ‘full engagement’ (Robertson and Cooper, 2009, p. 328). The study of Robertson and Cooper (2009) offers an effective and thorough explanation of the relationship between engagement and well-being. Also, the specific study presents the elements and the effects of each of these concepts as derived from the findings of literature but also of the empirical research developed in this field. In this way, the exact interaction between engagement and well-being is made clear. At the same time the benefits of each of the above concepts, i.e. of engagement and of wellbeing, are presented as related specifically to the organizational environment. An appropriately customized measure, the ASSET measure, is used for ‘identifying and evaluating the factors that can block either engagement or wellbeing’ (Robertson and Cooper, 2009, p. 330). It is proved that engagement and wellbeing, if combined, can significantly ‘enhance organizational effectiveness’ (Robertson and Cooper, 2009, p. 333). In this way, the relationship between engagement and employees’ wellbeing is fully verified. The value of the study of Robertson and Cooper (2009) for the proposed study, which aims to prove the close relationship between engagement and wellbeing, cannot be doubted. The articles presented above are related to specific objectives of the proposed study. These articles are indicative, showing the availability of literature for exploring the issues that the proposed study addresses. The articles presented above also indicate the value of the subject under examination: employee engagement is highly valued in the literature and the empirical research and for this reason its aspects have been explored using both primary and secondary research, as appropriate. Methodologies The following section will cover the methods that will be used for the investigation of the relevance of employee engagement indices as performance measures and indicators. Research Methodology This research attempts to identify the significance and importance of Employee Engagement Index (EEI) as a performance measure and indicator. As such, the research will need to examine the actual role that this plays in a given organization. To test this research question successfully, it will be appropriate to identify the actual role that EEI plays in the measurement of performance and human resource output in general in a given organization. Basically, Employee Engagement Index (EEI) is the ratio of satisfied (engaged) employees to the total number of employees in an organization, expressed as a percentage (Stevenson, 2009). As such, the research will need to examine how well this index operates to show the realities of human resource performance in an organization. The research must therefore examine the relationship between EEI and actual performance in organizations. Research Approach The research can be conducted through an inferential research and study of quantitative information relating to performance and the EEI to examine the relationship that exists between them. Quantitative research refers to the measure of data and information about a given topic (Young, 2004). In this case, the phenomena are actual performance and the reported EEI. In order to examine this closely, there is the need to examine some empirical information relating to some real organizations which will give an overview of how the two concepts interact and how well EEI interprets performance in an organization. In doing this, it will be appropriate to use a null hypothesis. A hypothesis is a tentative statement that is tested for its truthfulness or falsity in a research (Kothari, 2005 p22). In this case, the hypothesis is that “the performance of employees in an organization has a direct correlation with the employee engagement index (EEI)”. As such, the purpose of the research will be to prove whether there is a direct relationship between EEI and performance or not. If there is a direct relationship, then it will be inferred that EEI is very relevant as a performance measure and indicator in institutions. Research Methods It will be relevant to use both the quantitative and qualitative research methods in order to enhance the credibility and reliability of the study. The qualitative methods will be used since they are flexible and emphasizes on constructing theories and gaining deeper insights (Ghauri and Gronhaug, 2006). In particular, the research will use semi-structure interviews where the managers of various institutions would be interviewed in order to provide deeper insights on the subject under study. This type of interview will not only help in getting responses to the research questions, but also to involve emerging questions thereby helping in making interpretations of the meaning of some of the data (Flick, 2008). Qualitative research is majorly interested in the perspectives of the participants in their daily practices and knowledge in respect to the subject under study. Moreover, it is concerned with the behavior patterns such as relationships and organizational culture (Kothari, 2005). Since the topic under study involves employee engagement which revolves around social issues such as relationships, qualitative research would help this research to get relevant information. Also, qualitative research will provide the study with text as empirical material. The research will also use the quantitative research methods. This will provide the study with the numbers that have particular characteristics that are very useful for the purposes of analysis (Ghauri and Gronhaug, 2006). Quantitative research would give the study the possibility of presenting its findings in form of tables and graphs; these methods of findings presentation tend to convey a sense of objective and solid research thus rendering them more credibility and reliability (Kothari, 2005). In order to measure the actual relevance of employee engagement indices, the quantitative research will help to provide the measurements. Particularly, questionnaires as quantitative research methods would be used in collecting of data. Flick (2008) argues that questionnaires are the best approach of measuring or seeking numerical data. The questionnaires would be administered to the participants with the aim of obtaining particular information regarding the relevance of employee engagement indices as performance measures and indicators in institutions. The questions contained in the questionnaires would ask on how various aspects of indices work and how the participants perceive them in regard to their relevance. Quantitative research would cover for the limitations of the qualitative research, and vice-versa. In situations where quantitative approach would be limited to collect the required information, qualitative approach would be the most appropriate for data collection (Kothari, 2005). Quantitative research provides results in numerical form, and will be very applicable for the purpose of this study, because they can compare each employee engagement index. The results obtained would be used to make recommendations and for further analysis as well. Data Collection In order to prove or disprove this hypothesis, there will be the need to conduct an empirical study which will involve the collection of data from various sources in a number of organizations to enable testing. Sampling refers to a situation whereby a researcher studies less than 100% of the total population of a given research (Singh, 2009). Since this research will hope to provide some kind of generalized view of how relevant EEI is to measuring performance in organizations, it will be appropriate to test some organizations that have already used some form of performance measurement and also used EEI to measure customer satisfaction. The study adopts purposive research technique that gives clear guidelines of conducting a detail study with specific goals. The technique is relevant since it has the potential of steering the purposive nature of the study, which investigates the relevance of employee engagement indices as a performance measure and a factor that defines relationship between stakeholders in institutions. The technique presents effective data collection procedures where use of questionnaires and electronic resources are applicable. The techniques enable the researcher to make superior choices of credible resources and respondents to sample including formulation of pertinent questions. The questions must hold relevance in ensuring that the major objectives of the study are met. Data collected were analyzed using relevant software’s and findings drawn appropriately Data Analysis Information of the performance measurement carried out in each of the companies will be identified. The trends of productivity per person for each organization will be estimated based on a consistent method that runs through. In cases where methods of measuring performance are different, there will be the harmonization of standards to eliminate diversity and inconsistencies to the lowest levels possible. Also, the EEI, which is normally calculated through surveys, will be examined appropriately. Clearly, this is a subjective measure. Upon examination, there will be clear-cut facts and figures that will represent each of the seven organizations. With these two sets of data for each organization, there will be a comparison to identify the commonalities and the sequence in the relationship between performance and EEI. Data Interpretation and Conclusions The hypothesis indicates that there is a direct correlation between performance measurement and EEI. This therefore means that where performance is higher, EEI is also higher. In other words, one increases whilst the other increases and vice versa. If the data shows that there is a direct relationship, the hypothesis will be proven and it will be conclusive that EEI is a directly relevant performance measure and indicator for institutions. If this does not happen, it means that EEI is not an ideal or reliable performance measurement tool or indicator. Any other findings or conclusions that were made in the research will be stated to counter the hypothesis. Ethical and Political Considerations The first consideration in this research is in the area of consistency. There is the need to identify a performance measurement system that is universal and is used by all the organizations under study. Thus, if Employee Productivity is used as the basis for identifying performance measurement, then the Employee Productivity of all the seven organizations under study should be measured. Also, there should be some degree of comparability between the organizations under review. In a case where the organizations are significantly different, the data cannot be compared and analyzed meaningfully (Flick, 2008). Reliability is also another issue. The reliability of the studies and data presented by each of the organizations under review is very important. Thus, if an organization presents information that is inaccurate, then the research will also be inaccurate. Due to this, only formal figures will be sought from the participating organizations. Also, there is an issue with confidentiality. It is somewhat natural for organizations to be quite adamant in giving out sensitive information, especially when they know that the information could get to their competitors. In order to avert this problem, information will be solicited through a formal process and information will be protected by a confidentiality clause that will prevent the disclosure of sensitive information to third parties without the prior consent of the companies that gave them (Kothari, 2005). References Attridge, M 2009, Measuring and Managing Employee Work Engagement: A Review of the Research and Business Literature. Journal of Workplace Behavioral Health, 24(4), 383-398. Bakker, B and Leiter, P 2009, Towards a Model of Work Engagement. Career Development International, 13(3), 209-223 Bhatla, N 2011. “To study the employee engagement practices and its effect on employee performance with special reference to ICICI and HDFC Bank in Lucknow.” International Journal of Scientific and Engineering Research, 2(8), pp. 1–7. [Online] Available from:http://www.ijser.org/researchpaper%5CTo-study-the-Employee-Engagement-practices-and-its-effect-on-employee-performance-with-special-reference-to-ICICI-and-HDFC-Bank-in-Lucknow.pdf. Flick, U 2008, Designing Qualitative Research. London: Sage Publications Limited. Ghauri, P and Gronhaug, K 2006, Research Methods in Business Studies: A Practical Guide. London: Prentice Hall. Harter, K et al. 2002, Business-unit-level Relationship between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-analysis. Journal of Applied Psychology, 87, 268-279. Kothari, C. R 2005, Research Methodology. New Delhi: New Age Publishing. Macey, W. H., Schneider, B and Barbera, K. M 2009, Employee Engagement Tools for Analysis, Practice, and Competitive Advantage. Chichester, John Wiley & Sons. Available at http://public.eblib.com/EBLPublic/PublicView.do?ptiID=454285 Markos, S and Sridevi, M 2010, Employee Engagement: The Key to Improving Performance. International Journal of Business and Management, 5(12), 89-96. Mone, E and London, M 2010, Employee Engagement. Through Effective Performance Management- A Practical Guide for Managers. New York: Taylor and Francis Group. Ologbo, A and Saudah, S 2011, Engaging People who Drive Execution and Organizational Performance. American Journal of Economics and Business Administration, 3(3), 569-575. Robertson, I. and Cooper, G., 2009. “Full engagement: the integration of employee engagement and psychological well-being.” Leadership & Organization Development Journal, 31(4), pp. 324-336. [Online] Available from: http://www.robertsoncooper.com/files/Full_engagement_1_LODC.pdf. Saks, A. (2006). Antecedents and Consequences of Employee Engagement. Journal of Managerial Psychology, 21, 600-619. Siddhanta, A. and Roy, D., 2010. “Employee engagement – engaging the 21st century workforce.” Asian Journal of Management Research, pp. 170–189. [Online] Available from: http://www.ipublishing.co.in/ajmrvol1no1/sped12011/AJMRSP1015.pdf. Singh, P. B 2009, Research Methods and Approach. New Delhi: PHI Publishing. Stevenson, J. C 2009, Employee Training and Evaluation: A Human Resource Management Guide London: SAGE Publication. Young, P. V 2004, Scientific Social Surveys and Research. New York: New York University Press. Read More