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To cite this article: Liat Eldor & Eran Vigoda-Gadot (2016): The nature of employee
engagement: rethinking the employee–organization relationship, The International Journal of
Human Resource Management, DOI: 10.1080/09585192.2016.1180312
Download by: [Orta Dogu Teknik Universitesi] Date: 20 May 2016, At: 08:05
The International Journal of Human Resource Management, 2016
http://dx.doi.org/10.1080/09585192.2016.1180312
ABSTRACT KEYWORDS
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Introduction
In recent years, following changes in the employee–organization relationship
in workplaces (Coyle-Shapiro & Shore, 2007), we have witnessed a dramatic
growth of interest in the new concept of employee engagement. Scholars gener-
ally define employee engagement as an active, fulfilling and work-related state of
mind that includes a strong identification with the organization and self-expres-
sion (Albrecht, 2010a; Bakker, Albrecht, & Leiter, 2011; Rothbard & Patil, 2010).
However, although researchers have made great strides in clarifying the meaning
of employee engagement over the past decade (e.g. Albrecht, 2010b; Bakker &
Leiter, 2010a; Macey & Schneider, 2008; Schaufeli & Bakker, 2010; Shuck, 2011),
scholars are ambivalent as to whether employee engagement is distinct from other
constructs related to the employee–organization relationship (e.g. Dalal, Brummel,
Wee, & Thomas, 2008; Frese, 2008; Griffin, Parker, & Neal, 2008; Newman &
Harrison, 2008; Saks, 2008; Schohat & Vigoda-Gadot, 2010) or simply a ‘new blend
of old wines’ (Newman, Joseph, & Hulin, 2010, p. 45). Clearly, there remains room
for scholarly examination and exploration of the topic of employee engagement.
Scientific recognition of any new concept should be accompanied by rigorous
procedures to avoid any redundancy with already well-established concepts. Thus,
the new concept must demonstrate a relationship with close concepts in that field
and at the same time a lack of overlap with these concepts (Cook & Campbell,
1979; Schwab, 1980). To date, employee engagement has been distinguished from
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workaholism and burnout (e.g. Gorgievski & Bakker, 2010; Schaufeli, Taris, & van
Rhenen, 2008), and from attitudes such as job satisfaction and organizational com-
mitment (e.g. Christian, Garza, & Slaughter, 2011; Hallberg & Schaufeli, 2006). In
addition, a recent study by Vigoda-Gadot, Eldor, and Schohat (2013) has indicated
that employee engagement is distinct from affective commitment and involvement
at work. However, scientific recognition of new constructs is a continuous process
(Schwab, 1980), and a significant void still remains with regard to the potential
overlap between employee engagement and other less traditional concepts such as
psychological empowerment and the psychological contract. Moreover, although
a greater understanding of the employee–organization relationship has been the
goal of human resource scholars for the past decade, it has mainly focused on this
relationship from the organization’s point of view (Tsui, Pearce, Porter, & Tripoli,
1997). Such a focus raises the question of the limits of that perspective due to rapid
changes in the labor market, increasing competition and the desire to fulfill the
needs of employees (Coyle-Shapiro & Shore, 2007).
This study extends the current thinking on the employee–organization rela-
tionship by examining the role of employee engagement in the formation of the
employee–organization relationship. With this goal in mind, we investigate the
recognition of the contribution of employee engagement to the employee–organ-
ization relationship relative to other concepts such as psychological empower-
ment and the psychological contract. This examination is important, because
employee engagement shares characteristics with psychological empowerment
as an active attitude and with the psychological contract as a mutual factor in the
employee–organization relationship (Macey & Schneider, 2008; see also the rec-
ommendation of Parker & Griffin, 2011). We also aim to demonstrate the added
value of employee engagement in predicting work centrality, over and above the
employee–organization relationship concepts of psychological empowerment and
the psychological contract. Accordingly, the purpose of this study is to present
a framework that positions employee engagement as a potential key mechanism
explaining the relationship between employees and their organizations in the
contemporary organizational setting.
The International Journal of Human Resource Management 3
Type of Direction
One-Sided Older Concepts Psychological
(e.g. Organizational Empowerment
Commitment)
Mutual Exchange
Psychological Employee
Contract Engagement
these two dimensions forms the basis for two balanced exchanges (quasi-spot and
mutual investment) and two unbalanced exchanges (underinvestment and overin-
vestment) that together create four possible relationships. However, a significant
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factor that is missing from this model is the employees’ perspective about this
relationship. Exploring this factor can add new insights into employment relation-
ships both in theory and practice (e.g. Coyle-Shapiro & Shore, 2007; Hom et al.,
2009; Lepak & Shaw, 2008; Shaw, Gupta, & Delery, 2005; Shore, Coyle-Shapiro,
Chen, & Tetrick, 2009).
Therefore, based on the approaches to and theories about employee–organiza-
tion relationships mentioned above, we present a two-dimensional model of the
employee–organization relationship that reflects the employee’s point of view. This
model includes the degree of obligation that employees feel toward their employer
and the degree to which they feel they can influence this relationship. The first
factor refers to the direction of the relationship and obligations. Is it one-sided,
narrow and unbalanced, or is there a broad, mutual and reciprocal relationship
of obligations and contributions? Does this sense of obligation and willingness to
make a contribution arise mutually from employees and employers, or do employ-
ees depend entirely on incentives from the employer? The other factor is related
to the employees’ level of activation in the relationship. In other words, to what
degree do employees craft their relationship with their organization? What level
of energy is required from the employees in this relationship? These two factors
demonstrate the variability of the employee–organization relationship from the
employees’ perspective. Hence, each micro-concept of the employee–organization
relationship can be understood as a combination of the two dimensions of this
model, which is illustrated in Figure 1.
Using this typology of the employee–organization relationship, we position
employee engagement as a dynamic and dialectical relationship (Kahn, 1990) and
as ‘… positive, fulfilling work-related state of mind that is characterized by vigor,
dedication, and absorption’ (Schaufeli et al., 2002, p. 74), in the lower right-hand
quadrant of the model. We place engagement there because it resembles the high
level of employee activation (e.g. ‘At my work, I feel bursting with energy’) and the
mutual exchange orientation (e.g. ‘My job inspires me’; ‘My job is challenging’)
in the employee–organization relationship. This relies on previous arguments
developed by Kahn (1990, 1992) taken from motivation theories that employees
The International Journal of Human Resource Management 9
Method
Sample and procedure
The sample included 593 employees from heterogeneous organizations and pro-
fessional fields in Israel. Private sector employees returned 368 questionnaires,
and public sector employees returned 225 questionnaires. A variety of organi-
zations participated in this study, representing eight sub-sectors: Private sector
organizations included various fields such as hi-tech companies, medical and
pharmaceutical companies, cellular firms, banks, industrial firms, electronic tele-
communications, educational organizations and security companies; Public sector
organizations included governmental offices, local government municipalities,
public health agencies, public schools, police and other security agencies, tax
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pilot study of 113 respondents that yielded satisfactory results. Second, we ana-
lyzed a relatively heterogeneous sample and ensured a solid 25% response rate
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(Dillman et al., 2009). Third, the research questionnaire was compatible with var-
ious different web browsers, and the instructions were clear and concise (Simsek
& Veiga, 2001).
Measures
Employee engagement
Employee engagement was assessed with the shorter version of the Utrecht Work
Engagement Scale – UWES validated by Schaufeli et al. (2006) and relied on
Schaufeli et al.’s (2002) definition of employee engagement. The short scale includes
nine items and examines the three dimensions of vigor, dedication and absorption
using three items each. The UWES-9 has encouraging psychometric properties
(Schaufeli et al., 2006). Recent CFA studies have supported the theoretically based
correlated three-factor structure of UWES-9 and have repeatedly demonstrated
it to be a superior fit to the one-factor structure (Bakker et al., 2011; Hallberg &
Schaufeli, 2006; Schaufeli et al., 2006).The respondents were asked to rate their
answers across a seven-level frequency scale ranging from 1 (never) to 7 (every
day). Sample items include: ‘When I get up in the morning, I feel like going to
work’ (vigor), and reliability was .87; ‘To me, my job is challenging’ (dedication),
and reliability was .86; ‘Time flies when I’m working’ (absorption), and reliability
was .7.
Psychological empowerment
We used Spreitzer’s (1995) entire measure, which contains 12 items, 3 items for
each dimension: meaning, competence, self-determination and impact. However,
the results of a CFA in Spreitzer’s (1995) validation study demonstrated that the
four dimensions contribute to an overall construct of psychological empowerment.
The scale ranged from 1 (completely disagree) to 5 (completely agree). Sample
item: ‘I am confident about my ability to do my job’ Reliability was .87.
The International Journal of Human Resource Management 13
Psychological contract
We measured this variable using five items from the scale of Kickul, Neuman,
Parker, and Finkl (2001). The participants were asked to rate on a scale ranging
from 1 (completely unfulfilled) to 5 (completely fulfilled) the degree to which the
organization fulfilled its promises with regard to sample items about opportunities
for promotion and advancement. Rousseau (1995, 2001) found these issues to
be the most common promises mentioned by employees during the recruitment
process. Reliability was .77.
Work centrality
We used five items from Kanungo’s (1982) scale. Respondents were asked to indi-
cate their agreement with the statements on a scale ranging from 1 (strongly disa-
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gree) to 5 (strongly agree). Sample item: ‘The most important things that happen
to me involve my present job’. Note that work centrality can be measured in two
ways: (1) relative work centrality, which compares the importance of work to the
relative importance of other major areas of one’s life such as family, community
and religion (MOW-International Research Team, 1987); and (2) absolute work
centrality, which focuses on the importance of work to the employee with no
comparison to other major areas of one’s life. We decided to focus on the latter
approach because it is more appropriate to our field of research, the employee–
organization relationship. Reliability was .85.
Data analysis
We used the AMOS software to conduct a CFA to examine whether employee
engagement, psychological empowerment and psychological contract are empir-
ically separate constructs (i.e. discriminant validity). To evaluate the extent to
which the specified model reproduced the underlying covariance matrix, we used
an established set of goodness-of-fit indices (i.e. χ², SRMR ≤ .07, RMSEA ≤ .07,
NFI ≥ 0 .90, and CFI ≥ 0 .90; Bentler, 1995, 1999; Hu & Bentler, 1999; Steiger,
2007). Inter-correlations were used to examine the convergent validity of employee
engagement regarding the body of knowledge about the employee–organiza-
tion relationship. However, prior to the CFA, we used an ANOVA to determine
whether there was a significant difference between the private and public sectors
with regard to the three employee–organization variables – employee engage-
ment, psychological empowerment and the psychological contract – that justified
14 L. Eldor and E. Vigoda-Gadot
conducting a CFA separately for each sector instead of conducting one CFA for
both sectors together. The ANOVA indicated significant differences between the
private and public sectors with regard to all three variables. The means of employee
engagement for public sector employees (5.34, SD = 1.19) were significantly higher
than those in the public sector (4.87, SD = 1.36), and F(1591) = 17.947; p ≤ .001.
The mean of psychological empowerment for public sector employees (3.89,
SD = .58) was significantly higher than in the private sector (3.78, SD = .68),
and F(1591) = 4.06; p ≤ .05. Similarly, the mean for the psychological contract
for public sector employees (3.40, SD = .83) was higher than in the public sector
(3.22, SD = .89), and F(1591) = 5.65; p ≤ .05. These findings supported our deci-
sion to conduct a separate CFA for each sector to determine whether employee
engagement, psychological empowerment and the psychological contract were
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Findings
Table 2 presents the three CFA steps we carried out to examine H1, dealing with
the autonomous conceptual standing of employee engagement in both private and
public sector employees. We applied the CFA to the 368 private sector employees
(see Table 2), following a three-step process similar to that outlined by Hallberg
and Schaufeli (2006) and Vigoda-Gadot, Eldor, and Schohat (2013). In the first
step, we fit the data to a one-factor model (Model 1: general EOR) in which all
26 items of the three employee–organization relationship variables – employee
engagement (9 items), psychological empowerment (12 items) and the psycho-
logical contract (5 items) – were combined together and loaded on a single latent
EOR variable. If this model provided a good fit with the data, it would suggest that
employee engagement is not actually a unique factor. However, the results of this
model indicated a poor fit with the data, with {χ2 (299) = 3148.74, SRMR = .16,
RMSEA = .16, NFI = .54, CFI = .57}, implying that employee engagement is a
unique factor in the employee–organization relationship.
Therefore, we contrasted this one-factor general EOR model (i.e. the combined
26 items) with an alternative model consisting of five correlated factors (Model
2: five factors) that included the three sub-scales of employee engagement (vigor,
dedication and absorption), second-order latent psychological empowerment (for
previously CFA studies see Seibert, Wang, & Courtright, 2011; Spreitzer, 1995) and
psychological contract. Results indicated that although Model 2 provided better
results than Model 1, it did not fit the data well and exhibited an insufficient fit with
the underlying covariance matrix {χ2 (289) = 2177.4, SRMR = .13, RMSEA = .13,
NFI = .69, CFI = .72}. Based previous studies (i.e. the high correlations between
the three factors of employee engagement, see Bakker et al., 2011; Bakker &
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Table 2. Model fit for confirmatory factor analyses of employee–organization relationship (EOR) in the private sector and public sector.
Table 3. Inter-correlations for employee engagement’s dimensions and for the main study vari-
ables.
Variable 1 2 3 4 5 6
Employee engagement
Vigor (.87)
Dedication .77*** (.86)
Absorption .72*** .72*** (.70)
Psychological empowerment .58*** .62*** .51*** (.87)
Psychological contract .43 *** .52*** .38 *** .48 *** (.77)
Work centrality .40*** .50*** .51*** .37*** .23*** (.85)
Notes. N = 593; Cronbach’s α in parentheses.
***p ≤ .001.
Figure 2. Path coefficients for the effect of employee engagement and other employee–
organization relationship (EOR) variables on work centrality.
Note. Path values are standardized coefficients. *p < .05; **p < .01.
18 L. Eldor and E. Vigoda-Gadot
Table 4. Hierarchical regression analysis (standardized coefficients) for the effect of employee
engagement and other EOR variables on work centrality.
Step 1 Step 2 Step 3 Step 4
β (t) β (t) Β (t) β (t)
Gender .07 (1.85) .08* (2.03) .08* (2.13) .08* (2.25)
Age .08 (1.68) .01 (.38) .04 (.79) −.003 (−.06)
Education .12** (3.00) .09* (2.22) .09* (2.36) .06 (1.75)
Seniority .14** (2.77) .12* (2.35) .10 (1.94) .13** (2.73)
Type of sector .03 (.71) .03 (.79) .03 (.79) −.02 (−.49)
EOR variables
Psychological empowerment .30*** (7.72) .25*** (5.49) .03 (.62)
Psychological contract .11** (2.64) −.008 (−.17)
Employee engagement .47*** (9.90)
R² .08 .17 .18 .30
Adjusted R² .08 .16 .17 .29
F 11.27*** 20.27*** 18.55*** 31.13***
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Theoretical implications
The most interesting finding of our study is that employee engagement is dis-
tinguished from both psychological empowerment and psychological contract
because engagement incorporates mutual exchange and active aspects simul-
taneously in a connected manner. In line with previous studies (e.g. Christian
et al., 2011; Hallberg & Schaufeli, 2006; Vigoda-Gadot, Eldor, & Schohat, 2013)
that have distinguished employee engagement from job satisfaction, organiza-
tional commitment and job involvement, the results of this study support the idea
that employee engagement is an important standalone motivational construct. In
contrast to previous research, this study focuses on less traditional work-related
concepts, aiming instead at rethinking the contemporary relationship between the
employee and his/her organization. Employee engagement concerns the degree
to which employees actively make the best use of their personal strengths to
20 L. Eldor and E. Vigoda-Gadot
perform role-related work (Kahn, 1990; Schaufeli et al., 2002). Thus, our empiri-
cal analysis supports our theory build of engagement, leading to a contemporary
relationship framework. The ongoing challenge is to examine engagement relative
to other employee–organization patterns and clarify the relationship between
these inter-related concepts. Moreover, with the increasing interest in and focus
on extra-role behavior concepts (Macey & Schneider, 2008), it is important to
keep a close eye on the parsimony of the conceptual characteristics, while also
making sure that extra-role behavior does not become an isolated area of research
with exclusive constructs applicable only to a small range of contexts. Following
closely upon this argument is the recommendation for future studies to examine
the relationship between organizational citizenship behavior, personal initiative
and engagement.
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Pulakos, 1999; Masson et al., 2008). We argue that engagement does the best job
of advancing such contemporary requirements. Engaged employees have high
levels of energy, are proactive and take responsibility, are enthusiastic and have
an enjoyable and effective connection with their work (Macey & Schneider, 2008;
Schaufeli et al., 2002). As Grant and Ashford (2008, p. 3) noted, ‘Employees do
not just let life happen to them. Rather, they try to affect, shape, curtail, expand,
and temper what happens in their lives’.
Practical implications
Our findings have are also significant for human resource practitioners since they
‘expect interpretations of the results, to be cast in terms of actionable implications’
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(Macey & Schneider, 2008, p. 4). First, employees who are strongly engaged with
the organization are proactive, promote innovation and invest efforts in improving
the outcomes of their organization (Grant & Ashford, 2008; Harter et al., 2002;
Saks, 2006; Salanova et al., 2005). Thus, in the appraisal process, human resources
managers should also evaluate and take employees’ engagement into account.
Second, enhancing work centrality is an important goal of the human resources
department because it is positively related to work performance (e.g. Diefendorff
et al., 2002). Demonstrating the greater contribution of employee engagement
to the centrality of work in the employees’ worldview relative to other attitudes
may encourage human resources departments to create practices that enhance
engagement rather than focusing on various practices aimed at improving a vari-
ety of work attitudes Third, using the definition of engagement, which we have
demonstrated as being different from other concepts, human resource practition-
ers may be able to expand their methodologies for assessing the capabilities of
their employees. Moreover, they may be able to adapt their methodologies to the
demanding organizational reality by assessing employees’ initiative, enthusiasm
and absorption, or, in other words, their engagement.
Limitations
The limitations of our study should also be noted. First, our design was cross-
sectional rather than longitudinal, which precludes us from establishing either
causal directions or drawing conclusions about the stability of the relationships.
Second, the study was based on self-reports, meaning that the magnitude of the
study’s findings may have been biased due to common method variance or com-
mon source errors. However, these limitations are not as troublesome as one might
expect in such studies of recognition process. Third, while several potentially
overlapping concepts such as psychological empowerment and psychological con-
tract have been examined in this study, there may be scope in future research to
examine the potential overlap with other related concepts such as organizational
citizenship behavior and role of expansion.
22 L. Eldor and E. Vigoda-Gadot
Conclusion
On the basis of our study, we contend that employee engagement is a powerful
concept for researchers and practitioners precisely because it taps into a variety
of ideas about the meaning of the employee–organization relationship in our
complex organizational setting. Therefore, we believe that integrating the study of
engagement into the study of the employee–organization relationship will improve
our understanding about how employees function in the contemporary organiza-
tional sphere. Briskin (1998) argued, ‘To explore the challenge to the human soul
in organizations is to build a bridge between the world of personal and subjective
individual experience and the world of organizations that demands efficiency …
we must be willing to shift our viewpoint back and forth between what organiza-
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tions want of people and what the contradictory nature of human needs, desires,
and experience’ (p. xii). From our perspective, engagement provides the key to
these mutual needs and thus, fits the challenging organizational reality. We hope
this study provides an agenda for moving forward and provides practical insights
that are of use to organizations.
Disclosure statement
No potential conflict of interest was reported by the authors.
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