Role of Employee Engagement on Employee Performance Introduction

Organizations count on people as the most valuable asset. Is the most appropriate approach and there is evidence that organizations around the world are struggling to meet production and service requirements knowing that these results are directly dependent on the skill, commitment and capability of the workforce is mostly disengaged . Working environment has changed over the last decade and now organizations need to be more competent to survive in the global economy. The key to business survival is their ability to meet customer needs while achieving quality, flexibility, innovation and organizational responsibility, through a sincere participation and employee engagement. Employee Engagement these days it has become a very hot topic of management in this global competitive world. Everyone seems to be on track to get their employees engaged. The request has been made that commitment is necessary for higher levels of business performance, while studies advisors estimate that only 14 percent to 30 percent of employees are truly engaged in the workplace. In particular, very little attention has been paid to the levels of commitment of the people who run organizations. Now the world's top performing organizations understand that employee engagement is a force that drives business results. The best performing companies know that developing a strategy of employee engagement and connection with the achievement of corporate goals will help them win the market. Commitment means the extent to which people value, enjoy and believe in what they do. Employees engaged when motivated and satisfied. Engaged employees are committed to their organizations and have tremendous pride and ownership of jobs and put more discretionary effort in terms of time and energy, and significantly demonstrate higher levels of performance and productivity than those who do not feel involved with their work. Engaged is defined as involved or committed to something. Employees feel engaged when they find personal meaning and motivation in their work, receive positive interpersonal support, and running an effective working environment. An engaged employee feels that he or she is receiving the results, the desire to contribute to more than personal goals. In short, a motivation and inspiration of workers is an "engaged employees.

Research Goal The aim of the thesis is to describe the relationship between employee engagement and employee performance and what impact employee engagement has on employee performance. 3). Research Question What is according to the literature and research in Pakistani context, the impact of employee engagement on the performance of the employee? 4). The sub questions are What is the definition of employee engagement? What is the employee engagement according to the literature? Which factors have the most influence on the engagement of employees and what role plays the employee engagement on the performance of the employee? Which of the factors that influence employee engagement have the greatest impact on employee performance?

Litrature Review: Harter et al (2002) conduct a meta -analysis study for the business unit level relationship between employee satisfaction, employee engagement, and business outcomes. The main objective of this study was to evaluate the relationship between the results of employee satisfaction and engagement and business results of customer satisfaction, productivity, profit , turnover , and accidents. Used the Meta -analysis technique. Perform a Meta - analytic review of 7,939 business units in 36 companies. They found that higher levels of satisfaction for both employees and employee engagement were associated with greater customer satisfaction, productivity, and profit and reduced turnover and accidents. The study found that both employee satisfaction and employee engagement have a significant impact on the outcome of the business unit level. May et al (2004), to investigate the impact of mediation three psychological conditions, meaning, security and availability for employee engagement in their work. Will conduct the field study using survey methodology. The study was conducted at a large insurance company located in the Midwestern United States. They used the technique questionnaire to collect data from 270 employees and executives from various departments to measure the perception of the participants themselves, their jobs, their supervisors and colleagues. This study shows that the three psychological conditions have a significant positive relationship with commitment. Meaning displayed the strongest relationship. Job enrichment and work role fit was positively related to psychological sense. Rewarding colleagues and supportive relations supervisor positively associated with psychological safety, and adherence to the rules and fellow self-consciousness associated negatively. In this study the researchers found that the relationship between job enrichment and work role fit has the commitment both fully mediated by psychological conditions meaning. Salanova et al (2008) examines the mediating role of work engagement (vigor and dedication) to labor resources (job control, feedback, and variety) and proactive behavior at work. We investigate this mediating role with structural equations in two independent samples from Spain ( 386 employees of technology) and the Netherlands (338 telecommunications workers). The results of the two samples confirmed the working engagement mediated full impact of labor resources for proactive behavior. This study also found that if employees have adequate resources for the job will be more active and work with full commitment and dedication and behave proactively. Cabrera et al (2006) to conduct a study to investigate the determinants of individual participation in the exchange of knowledge. The main objective of this research was to investigate the psychological, organizational and system -related variables that can determine their individual participation in intra - multinational exchange of knowledge. Conduct exploratory research and the research method used to collect data from 372 employees of a large multinational company. Will investigate that self -efficacy, transparency with experience, lack of support from colleagues and supervisors, and to a lesser extent, organizational commitment, job autonomy, perceptions about the availability and quality of knowledge management systems, and perceptions of rewards associated with sharing knowledge, significantly predicted self - reports of participation in knowledge sharing.

Bakker et al (2008) to conduct research to provide an overview of the recently introduced concept of engagement work. The main objective of this study was to provide an overview of what the project is commitment and what ancestors and its consequences. Using qualitative and quantitative techniques in this study. They use various instruments for measuring work commitment. Used the Utrecht Work Engagement Scale for evaluation of three-dimensional engagement ( vigor , dedication and absorption ) . Also used the Oldenburg Burnout Inventory (OLBI) instrument for assessing positive and negative burnout made objects. They found that engagement work can be defined as a situation that includes vigor, dedication, and absorption. They also found that job and personal resources are the main predictors and drivers of engagement. They found that if the job demands are high than those resources to gain fallows. Quantitative studies in this research show that work engagement is positively related to job performance. In this study they found through quantitative study involved employees received higher ratings than their counterparts in performance roles and very role. They also found that engaged employees perform well and are willing to go the extra step. Schaufeli et al (2004) conduct multi- sample study to measure the relationship between job requirements and labor resources with burnout and engagement. The main objective of this study was to test a model in which burnout and engagement have different forecasting and various possible consequences. They used the technique questionnaire to collect data. Collect data from 1698 employees from four different Dutch service organizations. They used different instruments to measure data. They found that burnout and engagement are negatively related to each other. This study also shows that burnout is primarily provided by the requirements of the job, but also by the lack of labor resources, whereas commitment is provided solely by the available labor resources. The study also found that burnout is associated with health problems, and the turnover intentions, and involvement with the commitment of jobs. The study also found evidence of a positive relationship between three labor resources (performance feedback, social support, and supervisory coaching) and work engagement (vigor, dedication and absorption). The main limitation of this study is cross-sectional nature. Second, the study was based solely on self - report measures. Bakker et al (2007) to conduct a study to investigate that when work demands are high, the job resource engagement workbook. The main objective of this study was to examine the two cases of interaction. One hypothesis is to predict this job resources act as buffers and reduces the negative relationship between the misbehavior of students and engaging work. In other cases assumed that resources work particularly affect work engagement when teachers are faced with high levels of bad student behavior. In this study collected data through a questionnaire which was delivered to all schools in East, Northeast, and Southeast districts of Helsinki. A total of 805 teachers working in primary, secondary and vocational schools participated in this study. This study used the Swedish version of the Utrecht Work Engagement Scale (UWES) to assess the commitment. They found that supervisor support, innovation, information, assessment and organizational climate can all be considered important resources work for teachers to cope with demanding interactions with students.

Theoretical Framework

Theoretical Model
Involvement in Decision Making Rewards & Recognition Open Communication Management Support Fair & Equal Treatment Career Development & Training Empowerment

Employee Engagement

Employee Performance

Role of Employee Engagement on Employee Performance

Data Collection and Methodology

We chose the survey topic relating to the role of employee engagement on employee performance. To collect data, we adopted the Survey Questionnaire Research Technique. The questionnaire was solved by the sample size of 50 people working in different industries in Pakistan. We focused on interacting with people from all major sectors in Pakistan, including banking sector, academia, corporate aura and officials from the public sector as well. We used the questionnaire method to analyze the situation because participants responses to direct questions always are very revealing that adds value to the research purpose.

Data Analysis and Interpretation

In this part of the study empirical findings have been shown and interpreted. Table 3.1 presents the descriptive statistics which show the overall picture of the variables.

Figure 5.1

In this histogram we have the frequency distribution on Y-Axis and the independent variable on the X-Axis. The bell shape in this histogram shows that the data is normally distributed.

Figure 5.2

Figure 3.2 In this histogram we have the frequency distribution on Y-Axis and the Dependent variable employee performance on the X-Axis. The bell shape in this histogram shows that the data is normally distributed.

Table 5.1 Descriptive Statistics

N Employee Performance Employee Engagement Valid N (listwise) 111 111 111

Minimum Maximum Mean 2.60 2.49 5.00 5.00 3.9437 3.8172

Std. Deviation .47377 .52849

In the above table the minimum values, maximum values, mean values and the values of standard deviation of all the six variables have been shown. Mean value provides the idea about the central tendency of the values of a variable. Number of observations of each variable is 111. Standard deviation gives the idea about the dispersion of the values of a variable from its mean value. Since different units of measure have been used for different variables the dispersion of a variable using standard deviation cant be compared to that of other variable unless both the variables have the same unit of measure. But still these statistics are helpful to have an idea about the central tendency and the dispersion of a variable in absolute terms rather than relative terms.

The sample size we have selected was 111 and we have used (1-5) likert scale ranges from strongly disagree to strongly agree. We used the one independent variable in our model which is employee engagement and one dependent variable which is employee performance. Employee engagement range from 2.49 (disagree) to maximum range 5.00 (strongly agree) and its Mean is 3.8172 its means that the most of the sample size is agree that they are engaged in their companies and its standard deviation is +. 53 which means that the data can variate to .53 on both sides of the mean. Employee performance variable is ranges from 2.60 (neither agree nor disagree) to maximum range 5.00 (strongly agree) and its Mean is 3.94 its means that the sample size are agree employee performance is influenced by the employee engagement and its standard deviation is + 0..47 that means data can variate to 0.47 on both sides of Mean. Figure 5.3 represent the scatter plot. In this scatter plot we have the dependent variable on Y-Axis and the independent variable on the X-Axis. This scatter plot gave us the idea about the

relationship between dependent variable employee performance and the independent variable employee engagement. This scatter plot represents the idea that employee engagement and employee performance both have positive relationship. It shows that as the employee engagement is increased the employee performance is also increased in the same positive direction. Figure 5.3

Table 5.2 represents the table of correlations. Correlation is used to see the relationship between variables weather the relationship is positive or negative or moderate. This table reflect that the independent variable employee engagement is positively correlated to the dependent variable employee performance (r=.690, p=.000). The magnitude of the above discussed correlation is greater than 0.3 and lies in .30-.70 in the absolute terms, which shows the positive moderate correlations between the independent variable employee engagement and the dependent variable employee performance. The above discussed correlation is statistically significant at less than one percent level of significant. In the case of the below correlation we will reject the null hypothesis of no correlation as the P-values is less than 0.01 and we will accept the alternative hypothesis H1.

H1= Employee engagement increase the employee performance Ho= Employee engagement decrease the employee performance

Table 5.2

Correlations
Employee Engagement Employee Engagement Pearson Correlation Sig. (2-tailed) N Employee Performance Pearson Correlation Sig. (2-tailed) N 111 .690** .000 111 111 1 Employee Performance .690** .000 111 1

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

Table 5.3

Regression
Dependent Variable: Employee Performance Variables (Constant) Employee Engagement Coefficients 1.582 .619 Std. Error .239 .062 t-test 6.608 9.955 Significance Level .000 .000

EP=C+B1(EEi)+ Ei EP=1.582+.619(EEi)+ Ei Table 5.3 presents the results of the regression analysis. The results show that the independent variable employee engagement is significantly affect the employee performance as shown by the values of the t-statistic and the corresponding P-Values. t-test is used to test the significance of the individual partial regression coefficients. Null hypothesis in this test is set as the partial regression coefficient is zero. This test shows that the coefficient of employee engagement is statistically significant at less than one percent level of significance. As the coefficient of the employee engagement has the positive sign so the effect of the employee engagement on employee performance is positive. The magnitude of the partial regression coefficient of the employee engagement is 0.619, which suggests that holding other factors constant an increase of one unit in this variable would raise the employee performance by 0.619 units.

Our independent variable is employee engagement and its significance level is 0.00 which is less than 0.05 its means the relationship of employee engagement and employee performance is positive and statistically significant.

Table 5.4

Necessary Statistics
Adjusted Coefficient of Determination (R )
2

Coefficient F-Statistic Sig. Stat) (F-

of Determination R2 ) (Adj.

0.476

0.471

99.093

0.000

Table 5.4 reflects the joint effect of the independent variables on dependent variable. Coefficient of Determination R-Square is used to find the percentage that to what extent the independent variables affect on dependent variable. The value of the coefficient of determination (R2) is .476. This shows that the 38 percent affect on dependent variable employee performance is due to the independent variable employee performance and the other 52 percent affect on employee performance is due to the other variables which are not included in our research study.

In 3.4 the value of F-statistic is statistically significant at less than one percent which exhibits that our independent variable is jointly affecting our dependent variable that is employee performance.

Conclusion and Summery

This study has investigated the relationship between employee engagement and employee performance in Pakistani context. It provides the ground basis to organizations that are working in Pakistan and want more productivity with their human assets to gain more productivity by engaging their human assets and investing on them. This study has the significant implications for the Pakistani organizations to engage their employees on workplace to gain the competitive advantage and more productivity. For this study we use the employee engagement as independent variable and employee performance as dependent variable. To study the relationship of employee engagement on employee performance we used various statistical techniques. We used descriptive statistics and here we found the minimum and maximum range of data and also found the means and standard deviation of variables. The measure of central tendency (Mean) of employee engagement is 3.82 which show that most of the respondents agree that they are engaged in their companies. The mean of employee performance is 3.94 which show that those employees who are engaged in their organizations are more productive.

Limitations: 1. First of all, there is a need for more research in the field of employee engagement and employee performance. Not enough research has been done in order to describe the relationship completely. In Pakistan there is no one research author who focus on employee engagement and conduct the research on employee engagement in Pakistan. 2. Secondly the responses of this research might have been affected by the some biased opinions. 3. Thirdly the sample size which was chosen for this research was very small and limited to one city. Other cities of Pakistan could not be focused in this research. 4. Fourth the time assign for this research was very small.