Labour Union: How does union membership facilitate Employee engagement?

An Article

Submitted by:

Group F

Bhuma Bhandari
Manish Adhikari
Prasiddha Gautam
Rachana Bhandari
Riwaj Thapa
MBA 21st Batch

Submitted to:

Prof. Dr. Dhruba Lal Pandey

Resource Person, Human Resource Management

In partial fulfillment of the requirements for the degree of

Masters of Business Administration (MBA)

Tribhuvan University

Kirtipur, Kathmandu

March 17, 2023

Abstract

This article examines the factors that influence employee engagement, including meaningful

work, growth opportunities, employee performance, salary and organizational commitment as

well as the moderating role of labor unions. The Deloitte model is used as a framework for

evaluating engagement levels and identifying factors affecting employee engagement. Union

membership is found to play a moderating role in the relationship between living wages and

employee involvement. The study aims to contribute to the existing literature by exploring

these relationships and providing insights to help organizations and managers develop

effective strategies to improve employee engagement.

Keywords: employee engagement, meaningful work, growth opportunities, employee

performance, salary organizational commitment, labor unions, Deloitte model, job

satisfaction
Introduction

Employee engagement is a crucial aspect of organizational success and is influenced by

various factors. Studies examining the relationships between employee engagement and other

dependent variables have drawn substantial attention to the idea of employee engagement in

recent literature. Meaningful work, growth opportunities, employee performance, salary and

organizational commitment are among the most critical factors that influence employee

engagement (Ogbonnaya et al., 2020; Kulikowski & Sedlak, 2020; Yaqub et al., 2021). Many

studies have also studied the moderating function of labour unions, highlighting their

potential influence on employee engagement (Srivastava & Bhatnagar, 2017; Gkorezis et

al.,2020).

Meaningful work and growth opportunities have been found to positively influence

employee engagement (Kulikowski & Sedlak, 2020). Employees who find their work
meaningful and have opportunities for growth and development are more likely to be

engaged in their work and committed to their organizations. Furthermore, studies suggest that

high employee performance is positively related to employee engagement (Ogbonnaya et al.,

2019). Employees who feel that their work is appreciated and are recognized for their efforts

are more likely to be engaged in their work and committed to their organizations.

Salary has also been found to be a critical factor influencing employee engagement

(Yaqub et al., 2021). Employees who feel that they are being paid fairly and are satisfied with

their salary are more likely to be engaged in their work and committed to their organizations.

Additionally, organizational commitment has been identified as a significant predictor of

employee engagement (Ogbonnaya et al., 2019). Employees who feel a strong attachment

and loyalty to their organizations are more likely to be engaged in their work and committed

to achieving their organization’s goals.

Abdurrohman and Febriansyah (2018) investigated the improvement of employee

engagement in CV. Crisbar using the Deloitte model. The Deloitte model identifies four key

drivers of engagement in the workplace: meaningful work, growth opportunities, supportive

management and positive work environment. The authors evaluated the company’s

engagement level and identified the factors affecting employee engagement, including those

identified in the Deloitte model.

Charman and Owen (2014) proposed that unionized workers experience higher levels

of engagement and job satisfaction due to their receipt of fair and living wages. Union

membership plays a moderating role in the relationship between living wages and employee

involvement (Maleka et al., 2021). The study of Maleka et al. (2021) highlighted the

importance of management having an understanding of the relationship between employee

engagement, job satisfaction, living wages, and the role of union membership. This

awareness can aid in improving the management and relationship with low-income workers.

The rationale of this study is to understand the factors that influence employee

engagement, including meaningful work, growth opportunities, employee performance,

salary and organizational commitment along with the moderating role of labor unions. The

study seeks to contribute to the existing literature by exploring the relationship between

employee engagement, relevant variables, and labour unions, ultimately helping

organizations and managers develop effective strategies to improve employee engagement.

The objective of this article is to examine the relationship between employee

engagement, meaningful work, growth opportunities, employee performance, salary, and

organizational commitment as well as to explore the moderating role of labour unions in

these relationships.
Conceptual Framework
Literature Review

Engaged employees are an asset to organizations, and disengaged employees can hinder

growth; therefore, a need exists to develop strategies to engage staff, so productivity and

organizational effectiveness can increase (Keeble-Ramsay & Armitage, 2014). The longevity

of an organization is affected by employee engagement, which is a factor on the financial

performance of the organization (Bersin,(2021) describes the relationship between living

wage, job satisfaction and employee engagement, with union membership as the moderator.

It can help management to predict behavioral responses by paying attention to job

satisfaction, employee engagement, living wages and union membership. The data showed

the relationship between living wages and satisfaction was higher for unionized employees as

compared to non-unionised employees. This suggests that unions negotiate for higher wages,

which ultimately leads to higher job satisfaction.

Several studies have found that meaningful work and growth opportunities are

positively associated with employee engagement (Baker & Demerouti, 2017). Additionally,

employee performance has been found to be associated with engagement (Bakker &

Demerouti, 2014).

According to Bailey and Madden (2016), meaningful work is an important factor in

employee engagement. They argue that employees are more likely to be engaged when they

perceive their work as meaningful and purposeful. This sense of meaning can be derived

from a variety of factors, such as the opportunity to make a difference, the ability to use one’s

skills and strengths, and the potential for personal growth and development. When employees

experience meaningful work, they are more likely to be motivated, committed and satisfied

with their jobs, which can lead to higher levels of engagement and better performance.
 Breevaart et al. (2020) found that daily transactional and transformational leadership

behaviors were positively related to employee engagement, and that this relationship was

partially mediated by opportunities for growth and development. They suggest that leaders

who provide growth opportunities can foster employee engagement and be perceived as more

transformational.

Tiwari and Lenka (2019) conducted an empirical study in the Indian IT industry to

examine the relationship between employee engagement and job performance. Their findings

suggest a positive and significant relationship between employee engagement, with engaged

employees demonstrating better job performance than those who are less engaged.

Motyka (2018) defined employee engagement as a positive psychological state in

which employees are motivated and committed to their work and the organization. The

literature suggests that employee engagement is positively related to job performance, and

that engaged employees are more likely to have higher levels of productivity, job satisfaction,

and organizational commitment.

Sun and Bunchapattansakda’s (2019) literature review examined the concept of

employee engagement and its relationship with job performance. The authors highlighted the

need for organizations to prioritize employee engagement as a strategic goal and develop

effective engagement programs that align with their goals and values.

AlSafadi and Altahat (2021) conducted a study to investigate the impact of Human

Resource Management Practices (HRMP) on Employee Performance (EP) mediated by job

satisfaction, and moderated by employee engagement.

According to Albrecht, Green and Marty (2021), the relationship between meaningful

work and employee engagement has been examined in recent literature reviews. The authors

found that meaningful work and job resources such as autonomy, feedback and social support
are positively related to employee engagement. They also noted that employers can promote

employee engagement by providing job resources and opportunities for meaningful work.

Bailey et al. (2017) conducted a literature review and found that existential labor,

which is when an individual has to compromise their values or beliefs to perform their job,

negatively impacts meaningful work and can lead to a decrease in employee engagement.

They suggest that organizations should prioritize creating work environments that align with

employees’ values and promote a sense of meaning in their work to enhance employee

engagement.

According to Van den Broeck et al. (2016), self-determination theory proposed that

three basic psychological needs, autonomy, competence and relatedness, influence employee

engagement and well-being. The authors argue that meaningful work satisfies these needs,

leading to greater engagement and motivation among employees. They suggest that managers

should strive to create work environments that foster meaningfulness by providing employees

with opportunities to make meaningful contributions, develop their skills, and build

relationships with coworkers.

Bailey et al., 2019 conducted a review of empirical literature on meaningful work and

identified that meaningful work is associated with various positive outcomes including

employee engagement. The review suggests that future research should focus on

understanding the mechanisms through which meaningful work leads to positive outcomes

and explore the role of individual differences in this relationship.

The study by Keskes et al. (2017) examines the relationship between transformational

leadership and organizational commitment, mediated by leader-member exchange (LXM).

the study found that transformational leadership positively influenced LXM, which in turn

increased employee commitment to the organization and it also highlighted the importance of
leaders in promoting a positive work environment and creating strong relationships with their

employees, leading to greater levels of commitment and engagement among employees.

The study conducted by Kimutai and Sakataka (2015) aimed to examine the

relationship between rewards and employee engagement and commitment at Rift Valley

Bottlers Company. The study found that reward systems have a significant impact on

employee engagement and commitment. The results showed that employees who perceived a

strong link between their performance and rewards were more engaged and committed to the

organization.

The article examined the relationship between employee engagement, organizational

commitment and employee performance. The study found that employee engagement has a

significant positive impact on organizational commitment and employee performance. The

findings suggested that organizations should focus on creating a work environment that

promotes engagement to increase commitment and performance (Nazir & Islam, 2017).

According to Rameshkumar (2019), the study revealed that employee engagement has

a positive impact on organizational commitment indicating that when employees are more

engaged in their work, they are more likely to be committed to their organization.

The study by Srivastava and Dhar (2017) examined the relationship between

employee engagement and organizational commitment in the context of exploring the

antecedents and outcomes of organizational commitment. It looked at how the level of

employee engagement can mediate the relationship between different factors and

organizational commitment, such as leader-member exchange, human resource management

practices, and psychological empowerment.

According to Mokaya and Kipyegon (2019) studies on employee engagement in the

banking industry in Kenya, personal development and growth opportunities positively affect
employee engagement. The study found that employees highly value staff training programs

and opportunities for career development.

The study by Kulikowski and Sedlak (2020) investigates the relationship between pay,

fringe benefits, financial bonuses and work engagement. Their findings suggest that pay,

along with other forms of compensation such as fringe benefits and financial bonuses, are

positively related to work engagement.

The study conducted by Rana Muhammad Sahid Yaqub et al., (2020) aimed to

explore the relationship between compensation, organizational commitment, employee

engagement and organizational performance and the study found that compensation has a

significant positive relationship with employee engagement, loyalty and organizational

performance.

Ogbonnaya et al.,(2018) conducted a survey on the relationship between incentive pay

and employee engagement. The study found that incentive pay positively affects employee

engagement, satisfaction and trust. Overall, the study highlights the importance of using

incentive pay as a means of increasing employee engagement and satisfaction in the

workplace.

Another study by the University of California, Berkeley found that unionized

employees had higher levels of job satisfaction and were more likely to feel that their

employer valued their contributions. The study also found that unionized employees had

higher levels of trust in their employer and were more likely to feel that their work was

meaningful. Charman and Owen(2014) suggests that unionized employees are engaged and

satisfied because they are paid living and decent wages.

Furthermore, a study by the Economic Policy Institute found that “unionized workers

had higher wages and better benefits than non-unionized workers” (Mishel & Walters, 2017,
para. 1). This suggests that union membership can provide workers with tangible benefits that

can contribute to their overall job satisfaction and engagement.

On the contrary, Deborah F. Moses(2015) also found that Union workers are less

satisfied than non-union workers yet are less likely to leave their place of employment.

However, Patrice Laroche(2017) suggested that Unions don’t seem to make workers less

satisfied. Rather, workers who are likely to be dissatisfied even after controlling for various

aspects of their work are more likely to join unions.

This article examines the moderating effect of employee engagement on the

relationship between labour unions and several independent variables, including meaningful

work, growth opportunity, organizational commitment, and employee performance.

Employee engagement, as the moderating variable, refers to the level of emotional

attachment, involvement and commitment that employees have towards their work and

organization.

Ali et al. 's (2019) study on the Deloitte model of employee engagement found that

the model’s five key elements (meaningful work, supportive management, positive work

environment, growth opportunities and trust in leadership) are positively related to employee

engagement and organizational performance. While the study did not specifically examine

the connection between the model and labor unions, the findings suggest that the model’s

focus on creating a positive work environment, growth opportunities, and trust in leadership

can be particularly relevant in unionized workplaces.

Vlatka Ariaana Hlupic(2022) described that job laboring can improve the work,

productivity, creativity and satisfaction of employees. It suggests ways to incorporate job

laboring into the organization. It can help employees create a more engaged and motivated
workforce by allowing employees to customize their jobs to fit their unique skills and

interests.

Kim and Park (2017) found that union membership was positively related to

employee engagement among workers in South Korea. The study suggests that unions

provide workers with opportunities for participation, representation, and social support,

which can contribute to a sense of empowerment and job satisfaction.

Manoppo et al. (2021) conducted a systematic review and meta-analysis of 29 studies

and found that union membership was positively related to employee engagement,

particularly in job satisfaction and organizational commitment. The study suggests that

unions can enhance engagement by providing collective voice and representation

opportunities, leading to a sense of empowerment and satisfaction.

Boxall and Purcell (2011) found that unionized workers had higher levels of job

satisfaction and employee engagement compared to non-unionized workers. This indicates a

positive relationship between union membership and employee well-being power, which can

lead to better pay, benefits and working conditions resulting in higher job satisfaction and

engagement.

Boubaker et.al. (2020) found that union membership positively impacted job

satisfaction and employee performance, particularly in areas related to worker welfare and

protection, such as safety, health, wages, working conditions, and job security. However, the

study noted that the strength of the union’s bargaining power and the level of unionization

may affect the positive effects of unions.

Table 1: Overview of reviewed sources

Author and Objective Methodology Findings

Date

Deborah F. To explore 1. T-tests and F-tests 1. Union

Moses(2015) whether the 2. Multiple Regression workers are less
union affiliation Analysis satisfied than
affects non-union workers
employee yet are less likely to
engagement in a leave their place of
public sector employment.
workforce

Charman and To evaluate the 1. WVS data collected 1. Union membership

Owen(2014) relationship over six waves from boosts life
between labor 1982 to 2011 satisfaction across
union 2. Ordinary least squares demographic
membership (OLS) regression groups, and the
and life effect of union
satisfaction membership on life
satisfaction is large.

Bailey & To explore the 1. Gallup Q12 employee 1. Provides evidence

Madden mediating effect engagement survey, for the importance
(2016) of discretionary discretionary effort of discretionary
effort in the scale, and effort in translating
relationship self-reported engagement into
between performance metrics performance, and
engagement and 2. Structural equation highlights the need
performance. modeling to examine for managers to
the relationships foster both
between engagement, engagement and
discretionary effort discretionary effort
and performance to improve
organizational
outcomes.

Brevaart et To explore the 1. Survey from 169 1. Leaders who

al. (2020) role of growth Norwegian provided growth
opportunities in employees. opportunities were
 the relationship 2. Multilevel Structural perceived as more
between Equation (MESM) transformational and
leadership approach to analyze more effective at
behaviors and the data fostering employee
employee 3. Bootstrapping engagement.
engagement procedures to test the
indirect effects of
growth opportunities
on employee
engagement

Berger, C. J., To provide an 1. National probability 1. Union members

Olson, C. A., explicit sample of 1455 have higher job
& Boudreau, theoretical employed adults satisfaction than
J. W. (1983) framework for working 20 hr/week non-members, and
understanding or more this effect is
the effects of 2. Multiple regression partially explained
unions and and logit analysis by their greater
collective emphasis on
bargaining on work-related values
employee job and perceived
satisfaction rewards.

Kim & Park To assess the 1. Structured survey 1. Unions provide a

(2017) influence of through questionnaire collective voice and
union 2. Regression analysis support system for
membership on workers, leading to
employee greater
engagement and empowerment and
to identify job satisfaction.
potential factors
that mediate
this
relationship.

Manoppo et To examine the 1. Cross-sectional 1. It shows a positive

al.’s (2021) relationship surveys and relationship between
between union longitudinal studies union membership
membership 2. Meta-analysis and employee
and employee engagement
engagement, meditated by the
 especially in collective voice and
terms of job representation
satisfaction and opportunities.
organizational
commitment.

Boxall and To explore the 1. Cross-sectional 1. Union membership

Purcell relationship surveys and was positively
(2021) between union longitudinal studies associated with
membership 2. Meta- analysis higher levels of job
and employee satisfaction and
well-being, employee
specifically job engagement.
satisfaction and
employee
engagement

Motyka To identify the 1. Employed a 1. It found that

(2018) factors that systematic literature employee
contribute to review methodology engagement is
employee involving searching positively related to
engagement multiple databases for job performance.
articles that met the
inclusion criteria.

Tiwari & To investigate 1. Questionnaire 1. Employee

Lenka 2019) the relationship administered to 400 engagement was
between employees who found to have a
employee continue to work in significant positive
engagement and the organization after effect on job
job satisfaction downsizing or satisfaction.
restructuring 2. Job satisfaction was
2. Descriptive statistics found to partially
and regression mediate the
analysis were to relationship between
analyze the data. employee
engagement and
intention to quit.
Boubaker et To investigate 1. Used a cross-sectional 1. Union membership
al. (2020) the relationship survey design had a positive
between union 2. Self-administered impact on job
membership, questionnaire satisfaction and
job satisfaction, employee
and employee performance, with
performance, stronger effects
with a focus on observed when the
the influence of union had more
the strength of bargaining power
the union’s and when there was
bargaining a higher level of
power and the unionization in the
level of workplace.
unionization on
these
relationships.

Sun & To explore the 1. Systematic literature 1. The impact of

Bunchapatta impact of review of academic employee
nasakda employee articles and reports engagement on job
(2019) engagement on published between performance may
organizational 2000 and 2008 vary across different
outcomes, industries and
including job contexts, and future
performance research should
explore these
differences.

Choi To address 1. Panel data regression 1. Labor union utility

Intae(2018) whether labor analysis increases workers’
union members’ organizational
organizational commitment and job
commitment satisfaction and that
and job these effects are
satisfaction are positively greater
more influenced for labor union
by labor union members than
utility than nonunion
those of employees.
nonunion
 employees

AlSafadi and To examine the 1. Data collected from 1. Employee

Altahat moderating employees within the engagement
(2021) effect of Jordanian commercial emerged as a
employee banks. moderating variable
engagement in 2. Structural Equation linking HRMP and
the theorized Modeling techniques EP
model (SEM), path analysis
and Confirmatory
Factor Analysis
(CFA) were used for
data analysis.

Albrecht, To examine the 1. A cross-sectional 1. Meaningful work

Green and mediating role survey was conducted has a significant
Marty (2021) of job resources among 1415 positive effect on
in the employees employee
relationship 2. Data was collected engagement.
between through self-reported
meaningful measures of
work and meaningful work, job
employee resources and
engagement employee engagement
3. Structural equation
modeling (SEM) was
used to analyze the
data.

Bailey et al. To investigate 1. A systematic review 1. To prevent the

(2017) the relationship of the literature on erosion of
between the existential labor and meaningful work,
erosion of meaningful work was organizations need
meaningful conducted. to provide
work and 2. An analysis of employees with
employee existing case studies opportunities to find
engagement was done to illustrate meaning in their
the impact of work, such as
existential labor on through job crafting
meaningful work and and social support.
employee
engagement.
Van den To examine the 1. Meta analysis of 129 1. Organizations can
Broeck et al. relationships studies promote meaningful
(2016) between basic 2. Included samples work and employee
psychological from a variety of engagement by
needs and industries, including providing
various healthcare, education employees with
work-related and manufacturing. opportunities to
outcomes, 3. Systematic review fulfill their basic
including process to identify psychological needs
employee relevant studies, and at work, such as by
engagement then used statistical giving them more
methods to synthesize autonomy and
the findings. opportunities for
skill development.

Bailey et al., To provide a 1. Empirical studies 1. Employee

2019 research agenda published in engagement is one
for future peer-reviewed of the key outcomes
studies on journals between 1990 of meaningful work,
meaningful and 2017 that and it mediates the
work addressed the concept relationship between
of meaningful work. meaningful work
2. Data extraction and and other positive
analysis of key outcomes.
findings and themes
related to meaningful
work.

Keskes et al. To investigate 1. Cross -sectional 1. Transformational

(2017) the relationship survey design leaders can enhance
between 2. Participants were 298 organizational
transformationa employees from commitment
l leadership and various organizations through creating
organizational in Spain high-quality LMX
commitment. 3. Participants relationships with
completed their subordinates
questionnaires on
transformational
leadership, LXM, and
organizational
 commitment

Kimutai and To examine the 1. The population of the 1. Employee

Sakataka relationship study was 200 engagement
(2015) between employees of Rift partially mediates
rewards, Valley Bottlers the relationship
employee Company in Kenya, between rewards
engagement and and a sample of 132 and commitment.
commitment. employees was 2. The study
selected using simple concluded that
random sampling. rewards can be used
2. Data analysis was as a tool to increase
conducted using employee
descriptive statistics, engagement and
correlation analysis, commitment in an
and multiple organization.
regression analysis.

Nazir & To examine the 1. Data was collected 1. Organizational

Islam (2017) impact of from 270 employees commitment
employee of various partially mediates
engagement on organizations in the relationship
organizational Pakistan using between employee
commitment structured engagement and
and employee questionnaires. employee
performance. 2. The collected data performance.
was analyzed using
descriptive statistics,
correlation analysis
and regression
analysis.

Rameshkum To examine the 1. Used a survey 1. The study found a

ar (2019) relationship questionnaire to positive and
between collect data from 300 significant
employee Indian seafaring relationship between
engagement and officers. employee
organizational 2. The data collected engagement and
commitment was analyzed using organizational
among Indian descriptive statistics, commitment among
seafaring correlation analysis Indian seafaring
officers. and multiple officers.
 regression analysis.

Srivastava To investigate 1. The study collected 1. The study found that

and Dhar the impact of data from 455 LMX, HRM, and
(2017) leader-member employees from PE have a
exchange various Indian significant positive
(LXM), human organizations in the impact on ERP.
resource service sector.
management 2. The data was
practices analyzed using
(HRM) and structural equation
psychological modeling (SEM) and
empowerment partial least squares
(PE) on extra (PLS) techniques.
role
performances
(ERP)

Mokaya and To determine 1. Adopted a 1. Employee

Kipyegon the influence of descripto-explanatory engagement was
(2019) performance research design greatly influenced
management 2. Stratified sample of by growth
systems, 214 employees opportunities.
personal selected from a
development population of 496
and growth employees of
opportunities, Cooperative Bank of
workplace Kenya.
recreation and 3. Data collected were
remuneration analyzed through
on employee descriptive and
engagement. inferential statistics.

Kulikowski To examine the 1. A total of 602 1. Highlights the

and Sedlak relationship participants significance of
(2020) between pay, completed the survey. compensation in
fringe benefits, 2. Questionnaire survey promoting work
financial engagement.
bonuses, and
work
engagement
Rana To highlight the 1. The sample size was 1. Organizational
Muhammad importance of 250 employees and commitment was
Sahid Yaqub compensation managers from 6 found to have a
et al., (2020) and different banks. mediating role in the
organizational 2. Structural Equation relationship between
commitment in Modeling (SEM) was compensation,
enhancing used for data analysis. employee
employee engagement,
engagement employee loyalty
and organizational
performance.

Ogbonnaya To investigate 1. The study used a 1. The positive effect

et al., (2020) the relationship cross-sectional survey of incentive pay on
between design and collected employee
incentive pay, data from 429 engagement was
employee employees in a stronger for
engagement, UK–based employees with
satisfaction and organization using higher levels of job
trust self-reported security.
measures.

Patrice To provide a 1. 235 estimates from 59 1. Unions don’t seem

Laroche(201 systematic and studies published in to make workers
7) quantitative academic journals less satisfied.
review of the from 1978 to 2015 Rather, workers
existing 2. Meta Analysis who are likely to be
empirical 3. Meta-regression dissatisfied are more
evidence on the analysis likely to join unions.
effects of
unionization on
overall job
satisfaction
Research Methodology

This article employs a descriptive research design and a structured questionnaire to collect

primary data on employee engagement and labour union membership. The study has targeted

employees associated with labour unions, with a sample size of 200 selected through a

random sampling method to increase the validity and reliability of the results. Data analysis

involves various statistical techniques, including correlation and regression analysis to

identify the relationship between the variables of interest. The results will provide valuable

insights into the research questions and contribute to the existing literature on employee

engagement and labour unions.

Analysis and Presentation

2.1 Demographics

Gender

Gender is an important variable in expressing and giving responses about the problem.

Hence, the variable gender was investigated for this study. The gender wise classification of

the respondents is presented in table 2.1.

Gender Frequency Percent

Male 76 60.3

Female 50 39.7

Total 126 100.0

Table 2.1: Classification of respondents by gender

The figure shows that the majority of respondents are males (60.3 percent). The rest of the

respondents are females (39.7 percent).

Experience

Experience of the respondents is one of the most important characteristics in understanding

the views about the particular problems. The experience of the respondent is categorized into

four groups (i.e. less than years, 1 to 5 years, 6 to 10 years and above 10 years). The

classification of the respondents by age in terms of percent is shown in table 2.2.

 Experience Frequency Percent

45 35.7

Less than 1 year 17 13.5

1 to 5 year 17 13.5

6 to 10 years 11 8.7

Above 10 years 36 28.6

Total 126 100.0

Table 2.2: Classification of respondent by experience

Table 2.2 shows that the majority of the respondents belong to the experience group of above

10 years (28.6 percent) followed by an experience group of less than 1 years and 1 to 5 years

(13.5 percent each ) and an experience group of 6 to 10 years (8.7 percent).

Age

Age of the respondents is one of the most important characteristics in understanding the

views about the particular problems. The age of the respondent is categorized into four

groups i.e. 20-25 years, 26- 30 years, 31-35 years and above 35 years. The classification of

the respondents by age in terms of percent is shown in Table 2.3.

 Age group Frequency Percent

20-25 54 42.9

26-30 19 15.1

31-35 21 16.7

above 35 32 25.4

Total 126 100.0

Table 2.3: Classification of respondents by age

Table 2.3 shows that the majority of the respondents belong to the age group of 20-25 years

(42.9 percent) ,age group of 26-30 years (15.1 percent), age group of 31-35 years (16.7

percent) and the age group of 35 and above (25.4 percent).

2.2 Correlation Analysis

The table 2.4 shows the correlation between Labour Union and Employee Performance.

Employee
Performance Labour Union

Employee Pearson Correlation 1 .633**

Performance

Sig. (2-tailed) 0.000

N 126 126

LabourUnion Pearson Correlation .633** 1

Sig. (2-tailed) 0.000

N 126 126

**. Correlation is significant at the 0.01 level (2-tailed).

Table 2.4: Correlation between employee performance and Labour Union

Table 2.4 shows that there is a high correlation between labour union and employee

performance.
2.3 Regression Analysis

Sum of Mean
Model Squares df Square F Sig.

Regression 18.755 1 18.755 82.696 .000b

Residual 28.122 124

0.227

Total 46.876 125

Table 2.5: Anova Table

Standardized
Coefficients t Sig.

Beta

1 (Constant) 1.780 0.201 8.853 0.000

Labour 0.510 0.056 0.633 9.094 0.000

Union

Table 2.6 Coefficient table

The above table shows the regression analysis. The research has the regression equation that

is:

Labour Union= β 0 +β 1*Employee performance

The table 2.6 shows that the beta coefficient is positive for the labour union. And the Value

for β 0 and β 1 is 1.780 and 0.510 respectively.

FINDINGS

This study examined the relationship between union membership and employee engagement.

Based on the analysis presented in this chapter, it can be concluded that the majority of the

respondents were males (60.3%) and had an experience of above 10 years (28.6%). In terms

of age, the majority of respondents were in the age group of 20-25 years (42.9%).

In addition to that, the correlation analysis showed a high positive correlation between labour

union and employee performance, which indicates union membership facilitates employee

engagement. The regression analysis also indicated that there is a significant positive

relationship between labour union and employee performance, with a beta coefficient of

0.510, suggesting that union membership has a significant impact on employee engagement.

Therefore, it can be inferred that being a union member facilitates employee engagement and

performance, which have significant implications for both employees and organizations. The

results of this study are useful for organizations and policymakers in understanding the

importance of labour unions and their role in improving employee performance.

DISCUSSION

The importance of employee engagement in organizational success is supported by numerous

studies. Engaged employees positively impact organizational performance, productivity, and

financial success. Meaningful work, growth opportunities, and a positive work environment

are factors that foster employee engagement. Leaders who provide opportunities for growth

and development and prioritize creating a strong relationship with employees can positively

impact engagement. Rewards systems, including the link between performance and rewards,

have also been found to increase employee engagement and commitment.

Similarly, the results of this study suggest that union membership is positively correlated with

employee engagement, as evidenced by the strong correlation between labor union

membership and employee performance. This finding is consistent with prior research, which

has suggested that union membership was positively associated with higher levels of job

satisfaction and employee engagement(Boxall & Purcell, 2021). On the contrary, Deborah F.

Moses(2015) also found that union workers are less satisfied than non-union workers yet are

less likely to leave their place of employment. However, Patrice Laroche(2017) suggested

that unions don’t seem to make workers less satisfied. Rather, workers who are likely to be

dissatisfied even after controlling for various aspects of their work are more likely to join

unions. Organizations should prioritize creating a work environment that promotes

engagement, values employee well-being and provides growth opportunities to foster

employee engagement and organizational success.

Managers should strive to create positive work environments that foster meaningfulness by

providing autonomy, competence, and relatedness to employees. Furthermore, it is essential

to create strong relationships with employees and to prioritize the promotion of a positive

work environment to increase engagement, commitment, and performance among employees.

LIMITATIONS

Limitations of this study include the small sample size of 126, which may not be

representative of the entire population, and therefore the findings may not be generalizable to

other settings and the fact that the study was conducted in a specific geographic location.

Future research could expand the sample size and include a more diverse range of

participants to further explore the relationship between labor union membership and

employee engagement.And the study used a cross-sectional design, which limits the ability to
draw causal inferences about the relationship between labour union membership and

employee engagement. Future research could consider using a longitudinal design to explore

the relationship between labour union membership and employee engagement over time.

CONCLUSION

Based on the information presented in the study, it is possible to draw the conclusion that

there is a significant positive relationship between labor union membership and employee

engagement. The study found that the majority of respondents were male, had more than 10

years of work experience, and were between the ages of 20-25 years. The correlation analysis

showed a high positive correlation between labor union membership and employee

performance, indicating that union membership facilitates employee engagement. The

regression analysis further supported this finding, showing a significant positive relationship

between labor union membership and employee performance.

The study's results have important implications for both employees and organizations and

suggests that being a union member facilitates employee engagement and performance,

which can positively impact organizational success. Leaders should prioritize creating

positive work environments that foster meaningfulness, provide growth opportunities, and

promote employee well-being to increase engagement, commitment, and performance among

employees.

However, the study has some limitations, including a small sample size, which may not be

representative of the entire population, and the use of a cross-sectional design, which limits

the ability to draw causal inferences about the relationship between labor union membership

and employee engagement. Future research could expand the sample size and use a
longitudinal design to further explore the relationship between labor union membership and

employee engagement over time. Ultimately, the findings of this study underscore the

importance of creating positive work environments that foster meaningfulness, provide

growth opportunities, and promote employee well-being to increase engagement,

commitment, and performance among employees.

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 APPENDIX

Questionnaire:

Tick (√) the following:

1. Age:
10-19
20-29
30-39
40-49
50-59

2. Gender
Male
Female

3. Field of work:_____________________

4. Years of experience:
Less than 1 year
1-5 years
6-10 years
11-15 years
More than 20 years

5. Do you have labour union in your workplace?

 Yes
No

6. Does the labour union stay aligned with your views?

Yes
No

7. Does labour union help for employee engagement?

Yes
No

8. Meaningful work

Statement 1 2 3 4 5

I feel my strengths aligns with the work

I’m free to keep my point of view at my

work ( decision making)

My workplace has smaller team to work

My workplace provides enough time to

think, create and rest

9. Growth opportunity

Statement 1 2 3 4 5

My work helps for my career progression

My workplace supports me when I try to
move from a role that I’m highly
productive

I feel I’m rewarded when I solve the

problem

My workplace conducts training and

developmental program

10. Salary

Statement 1 2 3 4 5

I receive right amount of salary from my

work

I’m being paid fairly in comparision to

others

The economy affects my satisfaction

with my salary level

My company does my medical insurance

11. Employee Performance

Statement 1 2 3 4 5
I meet my deadlines in time

I came up with creative solutions to

solve problems

I actively participate in work meetings

I keep looking for new challenges in

work

12. Organizational Commitment

Statement 1 2 3 4 5

I would be happy to work rest of my career in this

organization

I enjoy discussing my organization with people

outside the organization

I feel strong sense of belonging to my organization

I feel organization problems are my own

13. Labour Union

Statement 1 2 3 4 5
Labour Union helps to make fewer
working hours

Labour Union Helps to make higher pay

Labour Union Helps to increase Job

securities

Labour Union Helps to protect physical

and mental health of employee