Human Resource Management and Analytics

The Capstone Project

Group Name – Employee Smart HR

Total Members in the Group - 5

Group Member Member Name Email ID Phone Number

1 Ramya Vaithiyanathasamy ramya.vaithiya@gmail.com 91593 07352

2 Swati Vinayak Honrao swativinuhonrao@gmail.com 99014 97621

3 Tanmay Singh tanmay031215@gmail.com 9911233755

4 Shubham Sarge shubhamsarge27@gmail.com 8655021463

5 Fatima Shaikh fatimashaikh@tigerbaby.in 8291581586

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 Project Title

An Empirical Study on the Impact of

Employee Engagement & Job Satisfaction
over Organization’s Performance

2
 Abstract

Human Resources form the knowledge asset of an organization, which provides a source of competitive
advantage to the organization. Attracting, motivating and retaining them have been the constant
endeavor of management to create an environment that supports Employee's career Aspiration. A
meaningful job and career prospects can provide employees a sense of satisfaction. Satisfied employees
create satisfied customers. In the long run, such an environment is required to enhance the state of
satisfaction and engagement. It has been reported by researchers that engaged employees create value
to the organization.

In the present competitive world, an employee's level of engagement and his quality of work are
important to growth. So, managers are always concerned with identifying ways to boost morale, increase
productivity and gain competitive advantage. To support this view, Towers Perrin has found that
companies with engaged employees boosted operating income by 19%. Watson Wyatt reported that
companies with highly engaged employees experienced 26% higher employee productivity, lower
turnover risk, greater ability to attract top talent, and 13% higher total returns to shareholders over the
last five years. The Organization wanted to know the level of satisfaction among their employees and the
extent of engagement among them so that further improvements could be made to the existing HR
activities. In order to find out the employees’ level of engagement and job satisfaction among employees
a questionnaire was designed based on the following objectives.

1. To study the personal profiles of the employees and their association with Employee Engagement and
Job Satisfaction.

2. To study the Dimension of Employee engagement.

3. To identify the level of Employee Job Satisfaction in the organization.

4. To examine the relationship between Dimensions of Employee Engagement and Employee Job
Satisfaction.

The questionnaire was distributed to the employees and the responses were tabulated with the help of
percentage analysis and other statistical analysis like Chi-Square, ANOVA and Multiple Correlations were
also used with the help of SPSS J 8.

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 Table of Contents

Description Page Number

Project Title 2

Project Abstract 3

Area of Research and Research Objective 5

Data Collection Method 6

Profile of the Organization 7

Theoretical Understanding of Key Concepts Related to the Problem 8

List of Metrics Identified 10

Analysis 11

Solutions/Recommendations 21

Link of Live HR Dashboard 23

Drive Link for Group Video 24

Conclusion and Summary 25

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 Area of Research and Research Objective

Human Resources form the knowledge asset of an organization, which provides a source of competitive
advantage to the organization. Attracting, motivating and retaining them have been the constant
endeavor of management to create an environment that supports Employee's career Aspiration. Satisfied
employees create satisfied customers. In the long run, such an environment is required to enhance the
state of satisfaction and engagement. It has been reported by researchers that engaged employees create
value to the organization.

Job Satisfaction:
Job satisfaction is defined as the extent to which employees like their work. Based on perceptions, an
employee develops a positive or negative attitude towards their job and environment. (EllicksonM,
2002). The more a person’s work environment fulfills his or her needs, values or personal characteristics,
the greater the degree of job satisfaction. Job satisfaction as an antecedent to employee engagement. A
study that both espouse a model of engagement which incorporates job satisfaction, feeling valued at
work, communication and training & development as key influences on staff engagement and overall
satisfaction at work Penna (2007).

Employee engagement:
Employee engagement is defined as the degree to which workers feel job satisfaction and an emotional
connection to the success of their business, resulting in improved productivity, innovation and
retention. Engaged employees are dedicated to their role, will stay in the organization for a long time,
be more productive, give better customer service and in turn create greater profit in private sector
organizations (Gallup, 2005). They take pride in their work and will put in extra time to get a task
completed to a good standard, not for financial gain but out of a personal sense of commitment known
as discretionary effort (Frank et al, 2004). It's a key strategic initiative that drives employee
performance, accomplishment, and continuous improvement all year long. It's the outcome from how
your organization interacts with people to drive business results.

Employees are more likely to become truly engaged and involved in their work if their workplace provides
a conducive environment to make right choices for business. Employee Engagement must be a business
strategy that focuses on finding engaged employees and then keeping the employee engaged throughout
their service. It must focus on business results. Employees are most engaged when they are accountable
and can see and measure the outcomes of their performance.
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 Data Collection Method

A proper data collection process is very helpful in identifying problems and implementing the right
solutions to resolve them. Before we start collecting data, we need to first determine whether we want
Quantitative or Qualitative or mixed kind of data.

Primary Data:
When we obtain data directly from individuals, objects or processes, we refer to it as primary data.
Quantitative or qualitative data can be collected using this approach. Such data is usually collected
solely for the research problem. Advantage - We can tailor it to our specific research question, so there
are no customizations needed to make the data usable. It is more reliable because you control how the
data is collected and can monitor its quality. We are more likely to collect only required data. Finally,
primary data is proprietary, so you enjoy advantages over those who cannot access the data. Although
its disadvantages are being comparatively costlier and time consuming.

Secondary Data:
When you collect data after another researcher or agency that initially gathered it makes it available,
you are gathering secondary data. E.g.: Census data, Stock prices or Salaries data published. Using
secondary data will save time and money. We can easily access secondary data from publications,
government agencies, data aggregation websites and blogs.

Primary Data Collection Method:

Primary data is collected from first-hand experience and is not used in the past. The data gathered by
primary data collection methods are specific to the research’s motive and highly accurate. Various
methodologies of Data collection are: Questionnaire, Time Series Analysis, Smoothing Techniques,
Barometric Method, Delphi Techniques, Surveys, Polls, Interviews, Focus Groups.

Questionnaire:
A questionnaire is a printed set of questions, either open-ended or closed-ended. The respondents are
required to answer based on their knowledge and experience with the issue concerned. The questionnaire
is a part of the survey, whereas the questionnaire’s end-goal may or may not be a survey.

6
 Profile of the Organization

ABC Pvt. Ltd., is a leading manufacturer and supplier of Boilers and Small Power Plants from India. This
Industries was started in the year 1974 as a vendor for manufacturing Non-Pressure Parts and Pressure
Parts for Bharath Heavy Electricals Ltd., (BHEL) Trichy. They have good manufacturing experience of 35
years for BHEL, a leading Utility Boiler manufacturer in the world is its basic strength by gaining valuable
experience in the manufacturing of highly sophisticated Non-Pressure Parts like structures, ducting,
dampers etc., and Pressure Parts like drums, water wall, super heaters, piping etc., from 1974 for their
100/200/500 MW Boilers. Also, they upgraded as a manufacturer of Process Boilers (from 1990) and
Small/Medium Industrial Power and Process Boilers (from 2004).

Experience:
ABC Pvt. Ltd., is amongst India's leading boiler manufacturers with rich experience in supply of high-
pressure multi fuel fired boilers as well as Waste heat Boilers. They have supplied more than 5000 Boilers
up to 200 TPH in capacity and 115 kg/cm2 in Pressure, having a rich experience of Exporting boilers to
various countries. One of the milestone performances is having executed 3 numbers of 200TPH Sugar
boilers in Thailand within 14 months and one number 200TPH Sugar Boiler within a record time of 11.5
months.

Features:
A Private limited company with aggressive growth of 30% CAGA for the past 7 years and has a vision to
reach Rs.1000 crores by 2025. Our manufacturing set up consists of 4 factories spread in 26 Acres land
with 15,000 sqm of Covered shop floor. Excellent quality, Competitive price, Quick delivery and Prompt
and Efficient after sales service are our growth drivers.

Quality Policy / Processes:

Quality assurance has always been a tradition in this organization. Adopted "Quality Management
System" to ISO 9001 and certified by BV for ISO 9001-2008 version along with the accreditation by
"ASME-'S' & 'U' Stamps. The Q.A Dept, is headed by highly experienced & qualified Personnel, ably
supported by the conduction of day-to-day inspection at our suppliers end & at our shop floors.
Committing to manufacture and deliver quality products and services consistently, that comply with
national, international standards /codes the quality management system and enhance customer
satisfaction through continual improvement in all functions.

7
 Theoretical Understanding of Key Concepts Related to the Problem

Employee engagement is defined as the degree to which workers feel job satisfaction and an emotional
connection to the success of their business, resulting in improved productivity, innovation and retention.
Engaged employees are dedicated to their role, will stay in the organization for a long time, be more
productive, give better customer service and in turn create greater profit in private sector organizations.
Employee engagement occurs when the goals of the business are aligned with the employee’s goals and
how the employee performs. Engaged employees have the information that they need to understand
exactly and precisely their work contribution & priorities.

Employee engagement lives when organizations are committed to management and leadership
development in performance development plans that are performance driven and provide clear
succession plans. Successions of such strategies have garnered the attention of managers and
organizations over the past twenty years, Employee involvement, employee empowerment, continuous
improvement, management by objectives of;

⮚ Measuring employee performance and holding employees accountable

⮚ Providing the communication necessary to align each employee’s actions with the organization's
overall business goals & pursuing the employee development necessary to ensure success.
⮚ Making a commitment (time, tools, attention, reinforcement, training, and so forth) to keeping
employees engaged over the long haul because they fundamentally believe and understand that
no other strategy will produce as much success - for both the business and the employees.

Additional Critical Factors to Ensure Employee Engagement

An effective recognition and reward system promotes employees by involving verbal or written
acknowledgement from the employee's manager in addition to any physical reward supplied. These
factors also influence the willingness of employees to stay engaged and contributing.

Frequent feedback:
Effective feedback focuses on what the employee is doing well and what needs improvement. It is clear
and specific and reinforces the actions that the manager wants to see the employee regularly perform.
Shared values and guiding principles: Engaged employees thrive in an environment that reinforces their
most deeply held values and beliefs. Employees are most successful in an organization in which their

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personal values are in sync with the organization's stated values and guiding principles. Demonstrated
respect, trust, and emotional intelligence on the part of the employee's direct supervisor: Managers
who relate effectively with employees, who demonstrate that they are personally interested in and care
about their employees, and who elicit employee input and opinions, are golden.

Positive relationships with coworkers:

Engaged employees need to work, not just with nice people, but with coworkers who are equivalently
engaged. Coworkers who demonstrate integrity, team work, a passion for quality and serving customers,
and who are passionate about what they do at work, make ideal coworkers in a workplace that fosters
employee engagement.

Scope for the Study:

The study aims to identify the relationship between employee engagement and job satisfaction. To
measure employee engagement, Role engagement, Management engagement, Team engagement and
organizational engagement and its impact towards job and work environment.

Statement of the Problem:

In the present competitive world, an employee's level of engagement and his quality of work are
important to growth. So, managers are always concerned with identifying ways to boost morale,
increase productivity and gain competitive advantage. To support this view, Towers Perrin has found
that companies with engaged employees boosted operating income by 19%. Watson Wyatt reported
that companies with highly engaged employees experienced 26% higher employee productivity, lower
turnover risk, greater ability to attract top talent, and 13% higher total returns to shareholders over the
last five years. The Organization wanted to know the level of satisfaction among their employees and
the extent of engagement among them so that further improvements could be made to the existing HR
activities.

Objectives:

⮚ To study the personal profiles of the employees and their association with Employee Engagement
and Job Satisfaction & to study the dimension of Employee engagement.
⮚ To identify the level of employee job satisfaction in the organization & to examine the
relationship between Dimensions of employee engagement and employee job satisfaction.

9
 List of Metrics Identified

Chi-Squared Analysis:

A chi-square (χ2) statistic is a measure of the difference between the observed and expected
frequencies of the outcomes of a set of events or variables. Chi-square is useful for analyzing such
differences in categorical variables, especially those nominals in nature. χ2 depends on the size of the
difference between actual and observed values, the degrees of freedom, and the samples size. χ2 can be
used to test whether two variables are related or independent from one another. It can also be used to
test the goodness-of-fit between an observed distribution and a theoretical distribution of frequencies.

ANOVA:

Analysis of variance, or ANOVA, is a statistical method that separates observed variance data into
different components to use for additional tests. A one-way ANOVA is used for three or more groups of
data, to gain information about the relationship between the dependent and independent variables. If
no true variance exists between the groups, the ANOVA's F-ratio should equal close to 1.

Multiple Correlation:

In statistics, the coefficient of multiple correlation is a measure of how well a given variable can be
predicted using a linear function of a set of other variables. It is the correlation between the variable's
values and the best predictions that can be computed linearly from the predictive variables. The
coefficient of multiple correlation takes values between 0 and 1. Higher values indicate higher
predictability of the dependent variable from the independent variables, with a value of 1 indicating that
the predictions are exactly correct and a value of 0 indicating that no linear combination of the
independent variables is a better predictor than is the fixed mean of the dependent variable. The
coefficient of multiple correlation is known as the square root of the coefficient of determination, but
under the particular assumptions that an intercept is included and that the best possible linear
predictors are used, whereas the coefficient of determination is defined for more general cases,
including those of nonlinear prediction and those in which the predicted values have not been derived
from a model-fitting procedure.

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 Analysis

CHI-SQUARED ANALYSIS

Table. No: 1

Hypothesis:

There is no association between gender and overall employee engagement.

Cross Tabulation

Overall Employee Strongly

Agree Moderate Disagree Total
Engagement Disagree
Gend Male 17 73 23 2 115
er Female 1 2 1 1 5
Total 18 75 24 3 120

Chi-Squared Test

Value df Asymp.Sig.(2- Sided)

Pearson Chi-
Square 6.901 3 0.075
Likelihood Ratio 3.269 3 0.352
Linear-by-linear
Association 1.058 1 0.304

No of Valid Cases 120

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 Disagree
Moderate
Agree
Strongly Disagree
Female Male
0 10 20 30 40 50 60 70 80

5 cells (62.5%) are expected to count less than 5. The minimum expected count is 13.

Result:
The Chi-Square value is 6.901, degrees of freedom is 3 & the significant level (.075) is above the
significant level (.05), the hypothesis is accepted. There is no association between gender and overall
employee engagement.

Table. No: 2

Hypothesis:

There is no association between Educational Qualification and overall employee engagement.

Cross Tabulation

Overall Employee Engagement

Strongly
Agre Moderat Disagre Tota
Disagre
e e e l
e
UG 10 36 9 1 56
PG 3 16 3 1 23
Educational Qualification
Diploma 5 20 12 1 38
Others 0 3 0 0 3
Total 18 75 24 3 120

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 Chi-Squared Test

Asymp.Sig.(2
Value df - Sided)
7.021 9 0.635
Pearson Chi-Square
7.737 9 0.561
Likelihood Ratio
Linear-by-linear 1.82 1 0.177
Association
120
No of Valid Cases

Chart Title
40

30

20

10

0
UG PG Diploma Others

Strongly Disagree Agree

Moderate Disagree

9 cells (56.3%)are expected to count less than 5. The minimum expected count is .08.

Result:
The Chi-Square value is 7.021, degrees of freedom is 9 & the significant level (.635) is above the
significant level (.05), the hypothesis is accepted. There is no association between Educational
Qualification and overall employee engagement.

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 Table. No: 3

Hypothesis:

There is no association between Cadre and overall employee engagement.

Cross
Tabulation

Overall Employee Engagement

Strongly
Agree Moderate Disagree Total
Disagree
Manager 6 14 2 0 22
Cadre Engineer 7 43 17 2 69
Executive 5 18 5 1 29
Total 18 75 24 3

Chi-Squared Test

Value df Asymp.Sig.(2- Sided)

Pearson Chi-Square 6.256 6 0.395
Likelihood Ratio 6.785 6 0.341

Linear-by-linear Association 1.251 1 0.263

No of Valid Cases 120

Disagree
Overall Employee Engagement
Moderate
Agree
Strongly Disagree
Cadre Executive Cadre Engineer Cadre Manager
0 10 20 30 40 50

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 6 cells (50.0%) have expected count less than 5. The minimum expected count is .55.

Result:
The Chi-Square value is 6.256, degrees of freedom is 6 & the significant level (0.395) is above the
significant level (.05), the hypothesis is accepted. There is no association between Cadre and Overall
employee engagement.

ANOVA

Table. No: 4

Hypothesis:

There is no significant relationship between Age and Employee Engagement & Job Satisfaction

Sum of
df Mean Square F Sig
Squares
Between
1.328 4 0.332
Role Groups
0.638 0.636
Engagement Within Groups 59.838 115 0.52
Total 61.167 119
Between
Managemen 2.607 4 0.652
Groups
t 1.099 0.36
Within Groups 68.184 115 0.593
Engagement
Total 70.792 119
Between
4.561 4 1.14
Team Groups
1.757 0.142
Engagement Within Groups 74.639 115 0.649
Total 79.2 119
Between
Organization 6.366 4 1.592
Groups
al 2.401 0.054
Within Groups 76.225 115 0.663
Engagement
Total 82.592 119
Between
Job & Work 1.288 4 0.322
Groups
Environmen 0.569 0.686
Within Groups 65.078 115 0.566
t
Total 66.367 119
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From the above table, it is inferred that age is considered as the analyzing variable to identify the
significant relationship with 5 dependent variables. Out of 5 Variables, 1 variable Organizational
engagement has a significant relationship with the analyzing variable Age. The remaining three variables
do not show any significant relationship with the variable Age.

Table.No:5
Hypothesis:
There is no significant relationship between Work Experience and Employee Engagement & Job satisfaction.

Sum of Mean
Df F Sig
Squares Square
Between
3.168 4 0.792
Groups
Role Engagement 1.57 0.187
Within Groups 57.999 115 0.504
Total 61.167 119
Between
3.573 4 0.893
Management Groups
1.528 1.99
Engagement Within Groups 61.167 115 0.585
Total 70.792 119
Between
5.199 4 1.3
Groups
Team Engagement 2.02 0.096
Within Groups 74.001 115 0.643
Total 79.2 119
Between
0.54 4 0.135
Organizational Groups
0.189 0.944
Engagement Within Groups 82.052 115 0.713
Total 82.592 119
Between
0.985 4 0.246
Job & Work Groups
0.433 0.784
Environment WithinGrps 65.382 115 0.569
Total 66.367 119

From the above table, it is inferred that the work experience is considered as the analyzing variable to
identify the significant relationship with 5 dependent variables. All the Variables, Role Engagement,
Management Engagement, Team Engagement, Organizational engagement and Job & Work
Environment do not show any significant relationship with the analyzing variable Work Experience

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 Table. No: 6

Hypothesis:

There is no significant relationship between Monthly Income and Employee Engagement & Job
Satisfaction.

Sum of Mean
Df F Sig
Squares Square
Between Groups 0.913 2 0.457
Role Engagement Within Groups 60.253 117 0.515 0.887 0.415
Total 61.167 119
Between Groups 0.46 2 0.023
Management
Within Groups 70.746 117 0.605 0.038 0.963
Engagement
Total 70.792 119
Between Groups 0.982 2 0.491
Team Engagement Within Groups 78.218 117 0.669 0.735 0.482
Total 79.2 119
Between Groups 0.331 2 0.166
Organizational
Within Groups 82.26 117 0.703 0.236 0.791
Engagement
Total 82.592 119
Between Groups 1.287 2 0.643
Job & Work
Within Groups 65.08 117 0.556 1.156 0.318
Environment
Total 66.367 119

From the above table, it is inferred that the Monthly Income is considered as the analyzing variable to
identify the significant relationship with 5 dependent variables. All the Variables, Role Engagement,
Management Engagement, Team Engagement, Organizational engagement and Job & Work
Environment do not show any significant relationship with the analyzing variable monthly income.

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 Multiple Correlations
Table No: 7

Role Management Team Organizational Job & Work

Engagement Engagement Engagement Engagement Environment
Pearson
Role Correlation 1 0.523 0.474 0.28 411
Engagement Sigma 2 Tailed 0 0 0.002 0
N 120 120 120 120 120
Pearson
Management Correlation 0.523 1 0.654 0.445 0.597
Engagement Sigma 2 Tailed 0 0 0 0
N 120 120 120 120 120
Pearson
Team Correlation 0.474 0.654 1 0.502 0.527
Engagement Sigma 2 Tailed 0 0 0 0
N 120 120 120 120 120
Pearson
Organizational Correlation 0.28 0.445 0.502 1 0.527
Engagement Sigma 2 Tailed 0 0 0 0
N 120 120 120 120 120
Pearson
Job & Work Correlation 411 0.597 0.527 0.527 1
Environment Sigma 2 Tailed 0 0 0 0
N 120 120 120 120 120

Correlation is significant at the 0.01 level (2-tailed). The above correlation table shows the
interrelationship between the dimensions of employee engagement and job and work environment. The
relationship between role engagement and management engagement was highly correlated (.523) and
it is significant at (.01) level.

The relationship of role management with other dimensions was moderately correlated and significant
at (.05) level. The relationship of Management engagement with the dimension role engagement, team
engagement and job and work environment were highly correlated, and with the other dimension
organization engagement was moderately correlated and it is significant at (.01) level.

The dimension team engagement was highly correlated with Management Engagement, Organizational
Engagement, Job and Work environment. It is moderately correlated with role engagement. All the
dimensions were significant at (.01) level.
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The dimension of organizational engagement was highly correlated with Management Engagement
Team Engagement, Job and Work Environment. The other dimension of role engagement was
moderately correlated with organizational engagement. All the dimensions were significant at (.01)
level.

Job and Work Environment was moderately correlated (.411) with role engagement and significant at
(.01) level. Job and Work Environment was highly correlated with (.597) Management Engagement,
Team Engagement (.527), Organizational engagement (.527) and all the dimensions were significant at
(.01) level

The above correlation table shows the interrelationship between the dimensions of employee
engagement and job and work environment. The relationship between role engagement and
management engagement was highly correlated (.523) and it is significant at (.01) level.

The relationship of role management with other dimensions like Team engagement, organizational
engagement and job and work environment dimensions was moderately correlated and significant at
(.05) level.

The relationship of Management engagement with the dimension role engagement, team engagement
and job and work environment were highly correlated, and with the other dimension organization
engagement was moderately correlated and it is significant at (.01) level.

The dimension team engagement was highly correlated with Management Engagement, Organizational
Engagement, Job and Work environment. It is moderately correlated with role engagement. All the
dimensions were significant at (.01) level.

The dimension of organizational engagement was highly correlated with Management Engagement
Team Engagement, Job and Work Environment. The other dimension of role engagement was
moderately correlated with organizational engagement. All the dimensions were significant at (.01)
level.

Job and Work Environment was moderately correlated (.411) with role engagement and significant at
(.01) level. Job and Work Environment were highly correlated with (.597) Management Engagement,
Team Engagement (.527), organizational engagement (.527) and all the dimensions were significant at
(.01) level.

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 Solution/Recommendations

This research was conducted to determine employee engagement and job satisfaction. To measure
employee engagement, Role engagement, Management engagement, Team engagement and
organizational engagement and its impact towards job and work environment.

Employees working at ABC Pvt LTD were surveyed to determine their levels of engagement and
performance, and chi square analysis was used to assess engagement effects on performance. This
analysis indicated that engagement affects all four aspects of employee performance.

Two conclusions can be drawn from the findings of this study. First, the key to improving employee
performance (and by extension, overall organizational performance) is increasing employee
engagement. Second, engagement has particularly powerful effects on the achievement of
organizational goals and overall growth, which indicates that ABC can improve their competitiveness
and profitability by developing strategies to increase engagement. These findings have several
implications for ABC.

First, ABC should develop strategies and programs for increasing employee engagement. Unfortunately,
there is little information available to guide these efforts, though the findings of a MNC research suggest
that at the managerial level, engagement can be increased with interventions designed to promote
transformational leadership approaches. However, more studies are needed to identify best practices
for increasing engagement among ABC employees.

Second, ABC should conduct research with their employees to determine how they could improve
engagement. This research could be undertaken with focus groups or by administering anonymous
surveys, though the latter approach may be more effective given the sensitive subject matter, as many
employees may be unwilling to speak candidly about workplace issues if they can be personally
identified. After conducting this research, ABC could develop appropriate interventions and follow their
implementation with longitudinal assessments to evaluate long-term performance effects in the areas of
growth, achievement, contribution, and customer satisfaction ratings.

Teams that have low levels of employee engagement should conduct additional research to determine
why their team is largely disengaged, as disengagement is likely to reduce profits, productivity,
innovation capability, and overall competitiveness. Issues that are negatively affecting engagement
should then be addressed with appropriate corrective measures. Recommendations can also be made
for additional academic research to further investigate the effects of engagement on performance and
address the limitations of this study. A multinational study of engagement effects on performance

20
would indicate whether the relationship is stronger or weaker in various cultural contexts. However, an
additional advantage of conducting a larger and more comprehensive study would be the use of a much
larger sample, as this would increase the representation of disengaged employees, thereby providing a
more accurate assessment of disengagement effects on performance. Including survey questions on the
reasons for disengagement and the ways in which engagement could be increased would also be useful,
as this would provide guidance for developing effective interventions.

To conclude, a formation of culture in the organization as it plays a vital role which ABC should develop:
an engaged culture marked by high levels of involvement, consistency, adaptability, and a transparent
mission improves performance. More proof about the causality of culture and performance comes from
Queen's University Center for Business Venturing. Using data over a ten-year period of employee
engagement surveys and company results, it found the following for organizations that possessed an
engaged culture:

• 65% greater share-price increase

• 26% less employee turnover

• 100% more unsolicited employment applications

• 20% less absenteeism

• 15% greater employee productivity

• 30% greater customer satisfaction levels.

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 Interactive HR Dashboard

https://drive.google.com/drive/folders/1NBPgJzr5Du2-
aV5y6EfOyb6HMnN9lUTS?usp=sharing

22
 Group Video

https://drive.google.com/drive/folders/1NBPgJzr5Du2-
aV5y6EfOyb6HMnN9lUTS?usp=sharing

23
 Conclusion and Summary

The components of employee engagement are transformational leadership, transactional leadership,

employee communication, organizational communication and employee involvement. Job satisfaction is
divided into intrinsic and extrinsic satisfaction. This study has shown a positive relationship between
employee engagement and job satisfaction. Thus, through providing employee engagement
opportunities, a company will improve employee job satisfaction. Engaged employees lead to higher job
satisfaction.

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