Employee Engagement
Employee Engagement
Employee Engagement
ON
“EMPLOYEE ENGAGEMENT”
At M/s KMC CONSTRUCTIONS Ltd, Hyderabad 500032.
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DECLARATION
I hereby declare that this project report titled “A STUDY ON EMPLOYEE ENGAGEMENT AT
it is not submitted to any other University or Institution for the award of any degree / diploma
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CERTIFICATION
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ABSTRACT
For any Human Resources staff, employee engagement and its role in the workplace is of major
importance. Employee engagement is used to measure the loyalty that any given employee has to their job or
position, as well as towards co-workers and company culture. Naturally, Human Resource staff wants the best
workers to be engaged in a way that best benefits the company. Positive engagement means that employees are
connected to their job, loyal, and willing to put in the extra work necessary to accomplish company goals.
A vast majority of leaders agree that the employees are a company’s most important asset. But that is true only
when the majority of the workforce is fully engaged in their work. If not, they are either adding minimal value or
actively working against the organization.
Therefore, Human Resource staff wants the best workers to be engaged in a way that best benefits the company
and thus, for any Human Resources staff, employee engagement and its role in the workplace is of major
importance.
Employee engagement is the level of engagement and involvement an employee towards their organization and
its values. An engaged employee is aware of business context and works with colleagues to improve
performance within the job for the benefit of the organization. A great deal of interest has been shown in
Employee engagement in recent years. Employee engagement is a multi-dimensional concept taking in two way
interaction between the employers and employees of an organization. As a matter of fact, employee engagement
has emerged as a need for business.
Employee engagement is important for any employer which aims to retain its valued employees as an
employer’s capability to manage employee engagement is related to its ability to achieve enhanced business
gains and high level of performance. It is the positive attitude held by employees towards the organization and
its values.
The project focuses on how employee engagement is an antecedent of job involvement and what should
company do to make employees engaged as a number of researches have highlighted that committed employees
perform better. Engaged employees enable successful implementation of business strategies, they fuel higher
levels of business performance. Fully engaged workforce is loyal and will align their efforts with organizational
goals.
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ACKNOWLEDGEMENT
I would like to thank my project guide MR. A. SUBHASH REDDY, Associate Professor,
PENDEKANTI INSTITUTE OF MANAGEMENT for the kind encouragement and constant
support extended in completion of this project work from the bottom of my heart.
I am also thankful to M/s KMC Constructions LTD, Hyderabad and all its employees and
associates who gave me the honor to complete my project in the field of employee engagement
and understand all the activities involved in it.
Finally, I would thank all those who have incidentally helped me, through their valued guidance,
co-operation and unstinted support during the course of my project.
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TABLE OF CONTENTS
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LIST OF TABLES
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CHAPTER - 1
INTRODUCTION
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1.1: INTRODUCTION
Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the
organization, and put discretionary effort into their work.
An engaged employee has a positive attitude towards the organization and its values. Positive engagement means
that employees are connected to their job, loyal, and willing to put in the extra work necessary to accomplish
company goals.
Employee Satisfaction only indicates how happy or content the employees are. It does not address their level of
motivation, involvement, or emotional commitment. For some employees, being satisfied means collecting a
paycheck while doing as little work as possible.
Employee engagement goes beyond employee satisfaction. Employee engagement drives performance. Engaged
employees look at the whole of the company and understand their purpose, where, and how they fit in. This leads
to better decision-making. Organizations with an engaged workforce outperform their competition. They have
higher earnings per share (EPS) and recover more quickly after recessions and financial setbacks. Engagement is
a key differentiator when it comes to growth and innovation.
Moreover, expectations of employees have changed. Mobile professional careers are much more common than
“job for lifers”. Retention of top talent is more difficult than before. A company that has an effective employee
engagement strategy and a highly engaged workforce is more likely to retain top performers as well as attract
new talent. Successful organizations are value-driven with employee-centric cultures.
the nature of the work undertaken, work that has transparent meaning and purpose,
development opportunities,
Inspiring leadership.
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1.2: NEED OF THE STUDY
Employee engagement drives performance. Engaged employees look at the whole of the company and
understand their purpose, where, and how they fit in, thereby giving their best performance always.
Employee engagement is important, as one’s loyalty can affect the productivity, survival and wellness of the
company.
Moreover, expectations of employees have changed. Mobile professional careers are much more common
than “job for lifers”. Retention of top talent is now more difficult than before.
A company that has an effective employee engagement strategy and a highly engaged workforce is more
likely to retain top performers as well as attract new talent. Successful organizations are value-driven with
employee-centric cultures.
Most studies point to the fact that employee engagement has a direct impact on productivity and profitability.
Moreover, expectations of employees have changed. Mobile professional careers are much more common
than “job for lifers”. Retention of top talent is more difficult than before. A company that has an effective
employee engagement strategy and a highly engaged workforce is more likely to retain top performers as
well as attract new talent. Successful organizations are value-driven with employee-centric cultures.
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Highly engaged employees excel in the areas of
Strategic Alignment (having clarity of purpose and direction and understanding how their work
contributes to the organization's success)
Managing Execution (ability to execute the plans framed, hold people accountable, and stay focused on
delivering results).
The purpose of the study is to understand the level of engagement of employees in the
organization.
The methodology followed for conducting the study includes the specification of research design,
sample design, questionnaire design, data collection and tools used for analyzing the collected data.
Research Design: It is a descriptive study aimed to understand the facts as they are present. The
questionnaire provided is designed in a scientific manner, keeping the job factors in consideration.
The research design followed is descriptive and analytical as to understand the existing state of
affairs.
POPULATION: The total element of universe from which sample is selected for the purpose of
study is known as population.
The population of my study is the employees working in M/s KMC Constructions LTD.
SAMPLE SIZE: All the items considered for a study constitutes a universe of population. In this
research, only a few items can be selected from the population for our study. The items selected
constitute what is technically called a SAMPLE.
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The sample size for my study is 130 from the total employees.
SOURCES OF DATA: For this study, both primary data and secondary data are used to arrive at
conclusions.
Primary data: It is collected in the form of questionnaire circulated to the employees at various
designations and departments of M/s KMC Constructions Ltd
Secondary data: It is collected from various sources like text books, publications, websites, and
journals. It is used to explain the concept of work life balance, interpret the results of survey
conducted and to arrive at conclusions.
The study covers the employees working at M/s KMC Constructions Ltd at various departments and at
various designations. The number of audience is around 70 to 80 and belongs to all ages, designations and
gender. The audience will be provided a questionnaire suitable for their profession and the results of it will
be analyzed using various statistical tools on various parameters like leadership, work culture, treatment of
senior managers, etc.
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CHAPTER – 2
REVIEW OF LIERATURE
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2.1 INTRODUCTION TO EMPLOYEE ENGAGEMENT
Employee engagement, according to the Corporate Executive Board (2004) is the “extent to
which an employee commits to something or someone in the organization and how long they stay
as a result of their commitment”. Employers with high employee engagement experience low
attrition and impressive business outcomes.
Employee engagement can also be defined as an employee putting forth extra discretionary effort,
as well as the likelihood of the employee being loyal and remaining with the organization over the
long haul.
Perform better
Put in extra efforts to help get the job done
Show a strong level of commitment to the organization
Are more motivated and optimistic about their work goals.
Kahn (1990) defines employee engagement as “the harnessing of organization members’ selves to
their work roles; in engagement, people employ and express themselves physically, cognitively,
and emotionally during role performances”.
In his 2004 book entitled The New Rules of Engagement, Mike Johnson wrote ‘the ability to
engage employees, to make them work with our business, is going to be one of the greatest
organizational battles of the coming 10 years’
Most often employee engagement has been defined as emotional and intellectual commitment to
the organization (Baumruk 2004, Richman 2006 and Shaw 2005) or the amount of discretionary
effort exhibited by employees in their job (2004).
The Gallup organization has done extensive research in 2006 on the topic of employee engagement and,
as part of their results; there are three types of employees in any organization:
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Engaged (15% of the workforce). These employees are loyal and emotionally committed to the
organization. They are in roles where they excel and where their talents are truly leveraged. They
enthusiastically invest in their work and take on responsibilities outside of their job description. They are
generally more likely to become emerging leaders and will stay with an organization much longer then
disengaged employees.
Not Engaged (67% of the workforce). These employees can be difficult to identify because they are
often relatively happy and satisfied in their role. However, they do the bare minimum and are not
invested in the company’s mission, vision, values or goals. They are less likely to be customer-focused
and are not concerned about productivity or company profitability. These team members are both a threat
and great opportunity – because with the proper approach, they can be transformed into engaged
employees that thrive in the organization.
Actively Disengaged (18% of the workforce). We have all worked alongside these people. They are
consistently negative, create a toxic environment, dominate their manager’s time and are usually vocal
about their unhappiness. What’s worse, is they are often subject matter experts well-respected in their
unique skillset. And because of that, they often have significant influence over others. These employees
can easily spread toxicity throughout an organization and can rarely be transformed into true “A” player
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Saks (2006) found a distinction between two types of engagement, job engagement and organization
engagement, which he argues are related but distinct constructs. In addition, he argued that the
relationships between both job and organization engagement, and their antecedents and consequences
differed in a number of ways, suggesting that the psychological conditions that lead to job and
organization engagement, as well as their consequences, is not the same. Whilst this study has
provided a new insight into employee engagement, it is important to note the survey was completed
by a small sample of 102 employees in Canada.
Practitioners and academics tend to agree that the consequences of employee engagement are
positive (Saks 2006). There is a general belief that there is a connection between employee
engagement and business results; a meta-analysis conducted by Harter et al (2002:272) confirms
this connection. They concluded that, “…employee satisfaction and engagement are related to
meaningful business outcomes at a magnitude that is important to many organizations”. However,
engagement is an individual-level construct and if it does lead to business results, it must first
impact individual-level outcomes.
Therefore, there is reason to expect employee engagement is related to individuals’ attitudes,
intentions, and behaviors. Although neither Kahn (1990) nor May et al (2004) included outcomes in
their studies, Kahn (1992) proposed that high levels of engagement lead to both positive outcomes
for individuals, (eg quality of people’s work and their own experiences of doing that work), as well
as positive organizational-level outcomes (e.g. the growth and productivity of organizations).
Over recent years there has been seen a significant shift in the employee‐employer relationship.
Some employees now seek short‐term careers in different organizations with the expectation that
they will commit for the short‐term and move on from jobs that are not satisfying, or simply use
experience gained in one role as a stepping stone to another job (Bates, 2004). Organizations want
people to put in extra effort and generate innovative ideas to improve services and save money
(Skapinker, 2005). Managers need to recognize this shift and refrain from using an autocratic
management style, which is likely to disengage employees who seek more collaborative and
empowering management, and inhibit innovation and a willingness to exert extra effort (Bates,
2004).
Towers Perrin (2007) found that organizations with the highest percentage of engaged employees
increased their operating income by 19 per cent and their earnings per share by 28 per cent year‐ to‐
year. Highly engaging organizational cultures may also have an attractive employer brand, being an
employer of choice which attracts and retains the best talent (eg Martin and Hetrick, 2006).
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2.2 DEFINING EMPLOYEE ENGAGEMENT
Organisations are where the theory of engagement is ultimately put into practice; they offer a great
insight into how engagement is viewed and used in ‘the real world’. The following examples illustrate
how organisations across various industries in the public and private sectors define employee
engagement.
Vodaphone defines employee engagement as ‘an outcome “measured or seen as a result of people
being committed to something or someone in the business – a very best effort that is willingly given”.’
(Suff, 2008)
Johnson and Johnson defines employee engagement as ‘the degree to which employees are satisfied
with their jobs, feel valued, and experience collaboration and trust. Engaged employees will stay with
the company longer and continually find smarter, more effective ways to add value to the organisation.
The end result is a high performing company where people are flourishing and productivity is
increased and sustained’.
BT believes employee engagement is ‘a combination of attitudes, thoughts and behaviours that relate
to satisfaction, advocacy, commitment, pride, loyalty and responsibility’. BT claims it is ‘broader than
the more traditional concept of employee satisfaction and relates to the extent to which employees are
fully engaged with the company and their work’.
(BT, 2008)
Barclays suggests a formal definition of employee engagement might be, ‘the extent to which an
employee feels a sense of attachment to the organisation he or she works for, believes in its goals and
supports its values.’ Barclays also suggest that it is possible to ‘gain a good sense of someoneʹs
engagement by asking a simple question, would you recommend Barclays as a good place to work?’
(Barclays, 2008)
Dell refers to being engaged as ‘giving time and talent to team building activities’.
(Dell, 2008)
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Nokia Siemens Networks describes being engaged as ‘an emotional attachment to the organization,
pride and a willingness to be an advocate of the organization, a rational understanding of the
organizations strategic goals, values, and how employees fit and motivation and willingness to invest
discretionary effort to go above and beyond’.
Leeds Metropolitan University refers to engagement through employees using their ‘talents to the
full wherever possible’
The University of York suggests that ‘employee engagement is a combination of commitment to the
organisation and its values plus a willingness to help out colleagues …. Employee Engagement goes
beyond job satisfaction and is not simply motivation’
Mercer defines engagement as “a state of mind in which employees feel a vested interest in the
company’s success and are both willing and motivated to perform to levels that exceed the stated job
requirements. It is the result of how employees feel about the work experience – the organization, its
leaders, the work and the work environment”.
(Mercer, 2007)
The Chartered Institute of Personnel and Development [CIPD] suggests engagement “can be seen
as a combination of commitment to the organization and its values plus a willingness to help out
colleagues (organisational citizenship). It goes beyond job satisfaction and is not simply motivation.
Engagement is something the employee has to offer: it cannot be ‘required’ as part of the employment
contract”.
(CIPD, 2007)
Hewitt Associates defines engagement as ‘the energy, passion or “fire in the belly” employees have
for their employer or more specifically what their employer is trying to achieve in the market’. Hewitt
Associates also suggest that engaged employees stay, say and strive. In other words, engaged
employees ‘have an intense desire to be members of the organization … are passionate advocates for
their workplace … they refer potential employees and customers … they go beyond what is minimally
required to produce extraordinary service and results for customers and colleagues’.
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The Corporate Leadership Council defines engagement as ‘the extent to which employees commit
to something or someone in their organization, how hard they work and how long they stay as a result
of that commitment’.
Gallup suggested that engaged employees are ‘psychologically committed to their work, go above and
beyond their basic job expectations, and want to play a key role in fulfilling the mission of their
organizations’, whilst disengaged employees were said to be ‘uninvolved and unenthusiastic about
their jobs and love to tell others how bad things are’.
(Blizzard, 2004)
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The Philadelphia Human Resource Planning Society (PHRPS) Research Committee suggests
that employee engagement goes beyond job satisfaction and is defined as a ‘personal state of
authentic involvement, contribution and ownership’.
It is a more specific measure of how employees relate to their direct supervisors. Topics include feeling valued,
being treated fairly, receiving feedback and direction, and generally, having a strong working relationship
between employee and manager based on mutual respect.
The Gallup organization has done extensive research on the topic of employee engagement and, as part of their
results; there are three types of employees in any organization:
Engaged
These employees are loyal and emotionally committed to the organization. They are in roles where they excel
and where their talents are truly leveraged. They enthusiastically invest in their work and take on
responsibilities outside of their job description. They are generally more likely to become emerging leaders and
will stay with an organization much longer then disengaged employees.
Honeymooners and Hamsters are new to the organization or to their role. The honeymoon phase typically lasts
12 to 18 months during which satisfaction is high but people are still to find their stride and understood how to
contribute fully to the organizational goals.
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Crash and Burn
Disillusioned and potentially exhausted, these employees ate top producers but are growing bitter due to a
lack of personal satisfaction. They are sometimes bitterly vocal that senior management are making bad
decisions or that colleagues are not pulling their weight. If left alone, they are likely to slip down the
contribution scale to become disengaged – bringing down those around them. They may leave but are more
likely to stop working hard.
Not engaged
These employees can be difficult to identify because they are often relatively happy and satisfied in their
role. However, they do the bare minimum and are not invested in the company’s mission, vision, values or
goals. They are less likely to be customer-focused and are not concerned about productivity or company
profitability. These team members are both a threat and great opportunity – because with the proper
approach, they can be transformed into engaged employees that thrive in the organization.
Actively Disengaged
This category of employees is consistently negative, creates a toxic environment, dominates their manager’s
time and is usually vocal about their unhappiness. What’s worse is they are often subject matter experts well-
respected in their unique skillset. And because of that, they often have significant influence over others.
These employees can easily spread toxicity throughout an organization and can rarely be transformed into
true “A” players.
Leaders improve engagement by defining and communicating a powerful vision for the organization.
They hire and develop managers that are emotionally invested in the organization’s mission and
vision and give them the resources to build great teams with the right people in the right roles.
Great managers ensure they acquire and develop great talent – they get the right people on the bus
and make sure they are in the right seats. They actively prioritize engagement. Their team’s activities
align perfectly behind the mission narrative of the organization.
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2.6: Measuring Employee Engagement
It is very important to monitor and measure the levels of employee engagement within
an organization. It is sensible for organization to monitor the levels of employee
engagement, so that if required action can be taken to enhance it. The levels of
engagement in an organization have significant and computable impacts upon the
productivity, customer satisfaction, loyalty, profits and achievement of strategies.
Engaging managers
Developing a communication plan
Creating organizational awareness
Motivating people to participate – what is in it for them?
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Design do’s and don’ts to ensure participation
Gather feedback
Step – 6: Implement
Implementing changes
Communicating improvements.
Benchmarking changes overtime.
While organizations may be aware “through the grapevine” that employees are
unsatisfied, it’s the reasons for the dissatisfaction that elude them. While employee
satisfaction is important, it’s not the end, its only one piece of employee
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engagement. Satisfaction is imperative in that, for those individuals who are top
performers, satisfaction may be derived from their achievement orientation, their
ambition or their sense of responsibility.
A satisfied employee is one who feels content in his or her position, who
appreciates his or her compensation and feels comfortable in a given work
environment.
By contrast, engaged employees feel passionate about their jobs, feel committed to
the company and use direction when making decisions and carrying out the tasks at
work.
For example, satisfied employees likely arrive to work on time, resist the urge to
take long lunches, meet their quotas and socialize with their colleagues. By
contrast, engaged employees look for a new ways to organization grow, volunteer
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for overtime to finish a project by its deadline and take leadership roles within the
company, regardless of their job descriptions.
Recruiting: Target applicants who are likely to view their work as interesting and
challenging. Encourage those who are not suited for particular work to opt out of
the system.
Job enrichment: Incorporate meaning, variety, autonomy and co-worker respect
into jobs and tasks
Selection: Choose candidates who are most likely to perform job duties well, make
voluntary contributions and avoid improper conduct.
Strategic compensation: Use pay – for – performance programs to focus
employees attention on incentivized behaviors. Adopt competency based – pay to
encourage acquisition of knowledge and skills and enchance employee
performance.
Performance management: Provide challenging goals that align with the
organization’s strategic objectives, feedback, recognition for accomplishments and
extra voluntary contributions.
The factors that drive employees to be engaged in their work vary not only from
country to country but also by industry sector and within companies.
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Consequently, organizations that are expanding globally need to be aware of what
engages their workforce in different global locations.
The best way to measure employee engagement is to conduct periodic surveys in form of questionnaire with
employees. Some of the questions that can be included in such surveys can be as follows:
• Do you trust your manager and believe they have your best interests in mind?
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• Is your voice heard and valued?
• Do you clearly understand the mission and purpose of the organization and how you contribute to
each?
• Do you have opportunities to learn and grow both personally and professionally?
Credibility: Companies that holds high ethical standards and is seen as a credible company
then represent their employees as credible and can create a strong sense of integrity.
Clarity: It’s no secret that clarity in communication is the key. However, clarity in goals is
also important. It’s just as important for an employee to be clear on the company goals, and how
that is directly impacted or influenced by the employee’s goals in order to get full employee
engagement.
Leadership: Successful organizations show respect for each employee’s qualities and
contribution – regardless of their job level. The leaders show set the example to their
subordinates by following the organization’s policies and lead them from the front.
Connection: Employees need to feel valued from all areas of the business, leaders, bosses, and
higher position employees. Having strong relationships with leaders creates a sense of mentorship
and strong employee engagement.
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Collaboration: Create teams in which there is healthy competition, support, trust, and
cooperation. Good team leaders encourage teamwork to maximize the potential of a department.
Confidence: create a sense of confidence within employees to help promote their future in the
company. Leading by example creates an environment where employees want to strive to be the
best they can be. Negative attitudes don’t bode well with employee engagement.
Job satisfaction: Only a satisfied employee can become an engaged employee. Therefore, it is
very essential for an organization to see that the job given to the employee matches his career
goals which will make him enjoy his work and he would ultimately be satisfied with his job.
Health and safety: Research indicates that engagement levels are low if employees do not
feel secure while working. Therefore, every organization should adopt appropriate methods and
systems for the health and safety of their employees.
Contribution: Employees engage when they know that their role has a direct impact on the
success of the company. HR staff should encourage employees to show appreciation for their co-
worker’s contributions in order to create better personal as well as working relationships in day-
to-day business.
Celebrate: Employees feel connected to the organization when their personal occasions like
Birthdays, Marriage anniversaries, Job anniversaries, promotions etc. are celebrated in the
organization.
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Career: Knowing there is opportunity for growth and not a stagnant position creates employee
motivation and employee engagement. Motivation is more likely when there is a goal to reach.
Congratulate: Giving recognition to those who do well and have gone above and beyond to
obtain the results companies are looking to achieve. Ideal performance appraisal methods should
be adopted and the performance of employees should be assessed periodically, at smaller
intervals.
7. Give feedback to employees as well as receive feedback from them regarding any policy or
values.
9. Empower your employees, delegate power and give them freedom to express their views in
organization.
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10. Encourage learning, training and development to employees to enable them grow
personally and professionally, thereby enabling them in career development.
Customer loyalty
Levinson (2007) suggests that employees who are happy in their work are more likely to
create loyal customers. Engaged employees tend to have a better understanding of how to
meet customer needs and, as a result, customer loyalty tends to be better in organizations
where the employees are engaged (Pont, 2004). Levinson (2007) claims that ‘in
departments where [highly] engaged employees sell to engaged customers, customer
loyalty, repeat purchases and recommendations to friends are double that of companies
with average employee engagement’. Ultimately, this may lead to what is sometimes
termed ‘customer engagement’, where there is a mental and emotional connection
between the organization and the customer (Bates, 2004).
‘Engaged employees are more likely to advocate the organization as a place to work and
actively promote its products and services’ ( 2007 ). In the same way, Penna (2006) found that
some organisations contain particularly disengaged individuals who would actually
discourage others from joining their current organisation. These individuals are referred to as
‘corporate terrorists’ (Penna, 2006).
Organisational Performance
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‘The best (performers) tended to be those with the highest engagement scores’ (Robinson, 2007).
In 2000 and 2002, Harter and colleagues’ meta‐analysis of 7,939 business units in 36 companies
found a relationship between employee engagement, customer satisfaction, productivity, and
profit and employee turnover (Harter, 2002). They concluded that increasing employee
engagement and building an environment to support this can significantly increase the likelihood
of business success.
Research suggests that employee engagement might play a key role in aiding the successful
implementation of organisational change (Graen, 2008) and may be particularly important to
enabling organisational agility in companies forced to adapt to the changing market. For instance,
Cambridgeshire County Council (cited in Scottish Executive Social Research, 2007) found that
their engagement improvement initiatives had led to time savings when introducing new policies
and implementing change.
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Employee retention
Levinson (2007) also suggests that employees who are happy in their work are more
likely to stay in the organization. Demourouti (2001) found that work engagement is
indeed positively related to organizational commitment. BlessingWhite (2008) reports
that 85 per cent of engaged employees plan on sticking around compared to 27 per
cent of disengaged employees. In addition, 41 per cent of engaged employees said that
they would stay if the organisation is struggling to survive.
Employee productivity
Engagement affects employee performance (Kahn, 1990). ‘Engaged employees work harder,
are more loyal and are more likely to go the ‘extra mile’ for the corporation’ (Lockwood,
2007).
Wellins and Concelman (2005) suggest that engagement is an ‘illusive force’ that motivates an
individual to achieve higher levels of performance. A study of 50,000 employees found that the
most engaged and committed perform 20 per cent better than their colleagues (Corporate
Leadership Council, 2004).
Sonnentag’s (2003) survey of employees from six public service organizations found that
high levels of engagement at work support employees in ‘taking initiative and pursuing
learning goals.
Likewise, Watson Wyatt’s (2007) survey of 946 companies across 22 countries found that
employees who are highly engaged are more than twice as likely to be top performers as are
other employees.
Research has indicated that engagement may result in positive health effects and positive feelings
towards work and the organization (Rothbard, 2001). Gallup (Crabtree, 2005, cited in Lockwood, 2007)
reported increased health and well‐being in engaged employees, with 62 per cent of engaged employees
reporting a positive effect of work upon their physical health. Gallup also suggests that perceptions of
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the organization as a healthy place to work increases the employees’ level of support for their
organization: ‘engaged employees are more likely to view the organization and job as a healthy
environment and therefore more likely to support the organization’. Engagement and investment of the
self into one’s work may lead to mindfulness, intrinsic motivation, creativity, authenticity, non‐
defensive communication, playfulness, ethical behavior, increased effort and involvement and overall a
more productive and happy employee (Kahn, 1990).
Manager self-efficacy
Academic research by Luthans and Peterson (2002) found employees who are engaged in
their organisation and their work are more likely to respond positively to their managers,
demonstrate good performance and achieve success. This then helps their manager to be
more effective and successful, which in turn increases the manager’s self‐efficacy. Research
has shown that self‐efficacy is positively linked to work performance, in that individuals
with higher self‐efficacy are more likely to be proactive in initiating work, and show
sustained effort and determination in their pursuit to achieve the task, even when problems
occur (Bandura 1986, 1997, cited in Luthans and Peterson, 2002). Luthans and Peterson
(2002) suggest that engaged employees bring about the psychological arousal of the
manager.
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CHAPTER – 3
COMPANYPROFILE
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It was in the year 1970 Mr. M. Raja Mohan Reddy, a well know entrepreneur and technocrat,
conceived a partnership firm ‘Krishna Mohan Constructions’ with a clear intent of becoming
the most sought after construction companies of India.
Having sound know how of the subject, the company executed several state and national
highway projects before turning into a private limited company in 1993. KMC turned into a
public limited company in 1994 with aim for a larger footprint and presence panning the country.
Today our founder’s vision is realized with KMC Constructions becoming one of the most
respected infrastructure companies of India. During this growth phase KMC has ensured
ramping on requisite infrastructure fueling development and helping meet projections in its
global standing. Few construction majors have more realistically applied the maxim as
comprehensively as KMC, over the four decades.
KMC is presently one of the foremost infrastructure companies in India, with a clear forte for
undertaking any scale of engineering and civil projects across known geographical boundaries.
Vision:
We aspire to be, in next 5 to 10 years, a group which would be ranked within top 10 in India in
its sphere and which improves quality of lives through its work. We pledge to uphold the
following values and commitment during our participation in the firm’s activities and in the
pursuit of our collective vision.
Mission:
To enhance and fortify quality, speed, innovation and technology into the Organization’s
business ventures and to be a trend setter in innovative management practices across premium
infrastructure space.
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Board of Directors:
Top Management:
M.I.Sones, Sr.VP
Subsidaries
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Achievements:
The Runway constructed by KMC Constructions Limited for Cochin International Airport
Ltd, Cochin, is one of the largest runways in India.
KMC is one of the first companies to be certified ISO 9002:1994 by bureau Vertis Quality
International (BVQI) . Post the introduction of revised ISO standards, KMC has been
certified for the latest ISO 9001:2008 standards.
The Four-laning of Visakhapatnam – Anakapalle section of NH – 5 executed by KMC
Constructions Limited with the loan assistance of ADB is one of the better administered
among ADB Projects.
The Chairman, NHAI, showed appreciation for the quality of work executed by KMC
Constructions Limited during his visit to “Four-laning of Jagatpur – Chandhikhol section of
NH – 5 in Orissa”.
Our Clients
A growing list, the canvas of clients representing who’s who in industry only proves the
appreciation to our focus, dedication and quality cementing on a trust bestowed by our clients.
KMC has undertaken several State and Central Government Projects across India. Some of the
clients are listed below:
38
Cochin International Airport Ltd, Cochin, Kerala
Public Works Department, Govt. of Andhra Pradesh
Public Works Department, Govt. of Karnataka
Public Works Department, Govt. of Tamil Nadu
Public Works Department, Govt. of Rajasthan
Public Works Department, Govt. of Gujarat
Public Works Department. Govt. of Chhattisgarh
Andhra Pradesh Road Development Corporation, Hyderabad
Karnataka Road Development Corporation, Bangalore
Bangalore Development Authority, Bangalore
Singareni Collieries Company Ltd, Kothagudem, Andhra Pradesh
Hyderabad Urban Development Authority, Hyderabad
Hyderabad Growth Corridor Ltd
Andhra Pradesh Expressway Ltd
Investors:
Promoters
Ares Investments
Sequoia Capital India Growth Investment Holdings
3i Infrastructure Private Ltd.
Infrastructure Development Finance Company Ltd
Segments of Business:
INFRASTRUCTURE / CONSTRUCTION
Highways
Roads are a measure to the development of a region and form the very essence of
economic and social development. KMC Constructions has primarily been into the
development of roads and has successfully executed the completion of major highways,
expressways, airport runways, and roads across towns, cities, factories and many such
39
other areas. KMC Constructions has been one of the chief contractors of NHAI and has
undertaken projects worth hundreds of Crores even in the most recent years.
Power
The power sector ranked sixth among the leading sectors of the Indian economy, The power
ministry has set a target for adding 79690 MW non-renewable and 18500 MW renewable
capacity in the 12th Plan (2012-17) and 79200 MW non-renewable and 30500 MW renewable
capacity in the 13th Five-Year Plan (2017-2022). With the promise of Power Sector booming up,
KMC is geared up to vitalize its capacitance on energy generation on a significant scale. KMC is
actively pursuing on first generation power utilities and looks to execution of a number of Power
projects dotted across India.
KMC is committed to continually upgrading its skills to meet challenges of the future. The
company aims to provide products and services based on efficient and environmental-friendly
technology, convene customer expectations of quality and delivery.
While envisaging its foray into conventional power generation processes such as thermal and
hydroelectric projects, KMC is also actively exploring generation of power through non-
conventional power production sources such as Solar, windmills and even seawater on the
coastal belt. Though the extent of likely investment is quite high in these areas KMC is already
placing plans afoot for entry into these exclusive domains. The versatility of the projects that
KMC is venturing into has put us in the forefront of the higher-end players in the infrastructure
industry of India.
40
Bridges
Building bridges can be considered as one of the oldest innovative ideas for Effective
communication.. With advancement of technologies, their utility and scope have also grown.
KMC has been in forefront in designing and constructing major and minor bridges. Several
major bridges constructed by KMC stand as the most useful landmarks. The high bridge across
river Pennar in Andhra Pradesh or the high level bridge across river Pulikalva near
Gunapatipalem are some of successful examples to read about.
KMC has undertaken construction of some of the largest and most complex bridges in India and
has to its credit masterful achievements completed well within the time parameters set, and many
before their scheduled time of the completion itself. This star attribute has resulted in KMC
being the most sought after company for undertaking of mega bridge building projects across the
length and breadth of our country.
The engineering expertise that we have demonstrated in our bridge projects is standing testimony
to the technical and architectural prowess that we proudly carry forward helping us to envelop
more challenging assignments in the sector .
Urban Infrastructure
We are headquartered in Hyderabad and are primarily focused on residential and corporate office
projects. Our residential projects include presidential apartments, villas, row houses, luxury and
super luxury apartments, and plotted development complete with modern amenities. We strongly
emphasis on environmental management, water harvesting and high safety standards in all our
residential projects.
We have established ourselves as a strong real estate developers in Hyderabad. Our expertise is
in whole range of real estate development activities; these include land assessment, land
acquisition, planning, architectural designing, construction, and effective management of various
types of projects. The company’s main aim is to provide quality properties in Hyderabad which
41
are a profitable investment while being a place which is appreciated for its design, comfort and
maximum space utilization.
Railways
Indian railways today, becoming one of the largest networks in the world. In the past few years,
Indian Railways have registered an unprecedented turnaround in its fortunes that has helped
launch itself towards a path of gigantic growth and development. Being the largest sector of
Indian economy, the services sector continues to be the mainstay and key driver of the nation’s
overall growth.
KMC having essentially focused on Roads and Bridges is making significant forays into
exploring further into this vast domain and is soon to announce major plans for making further
inroads into this ever challenging sector. We aim to enter in to strategic alliances with world
leaders to expand our capabilities and remain avant-garde of change.
KMC has undertaken construction of first generation railway lines and bridges for the Indian
government and commands requisite expertise in undertaking similar ventures in spite of the
scale of the assignments. From laying of railway lines across even difficult terrains, to the
construction of mega railway bridges, Our company is venturing fast into this sector with
renewed zeal as a competent player in view of the future transportation needs of the economy.
Waste Management
42
Will pave the way for future opportunities in India.
Manufacturing
Produced at all project plants for use in the project, KMC Ready-Mix-Concrete is sourced for use
at minimum notice with a division of the most current mobile volumetric batching plants.
KMC ready mix concrete is produced based on the precise purpose of its use as different projects
require varyingly different formulations for giving consistent strength to the structures being
built.
Our ready mix concrete plants produce tonnes of concrete every day using premium raw
materials and recommended ingredients and treated well by chemical engineers who ensure that
the yield is thoroughly tested using most rigorous test methods for strength and versatility among
any application that necessitates its use.
43
A major part of road construction anywhere in the country is normally completed with asphalt,
which is a combination of asphalt oil, gravel and sand, heated and laid out on road surfaces. This
usually lasts long as it is easy to perform repeated overlays on the road surfaces overtime. The
initial cost of asphalt road construction is lesser than concrete. Further they are sound absorbing
and have proved to be much quieter than concrete roads. They do not necessitate much hardening
time unlike concrete roads and are ready within just a few hours’ time.
KMC manufactures all its asphalt mixes for road construction using hot mixing plants installed at
all road construction project sites, using a careful blended formula, repeatedly tested for
performance for each use. Each asphalt mix is designed based on the ground surface it is being
used on, to provide the best surface which is both strong and long lasting bearing out even on the
attributes of bad weather such as extreme heat, heavy rains, freezing temperatures and even
excessive loads or traffic.
KMC hot ready mix asphalt is currently used in its own sites however is soon to be available as a
commercially customised product for use by other civil construction agencies on a competitive
pricing mechanism.
Hume pipes
KMC has been fabricating these structural implements chiefly for use in its infrastructure
projects but is under active contemplation of producing them on a massive commercial scale.
Made with the best composition of Reinforced Cement Concrete built around an armature of
excellent metallic strength, our Hume pipes are designed to withstand the roughages of all kinds
of use across a myriad range of utilities such as transfer of high pressure water, sewage,
chemicals, oil etc. Further our Hume pipes are made per international specifications and are
comparable with the best names in Europe or America.
44
Hume pipes of KMC are cost effective, versatile in utility, customised in shapes and sizes
ranging from 100 mm to 3,000 mm, come with a choice of rigid or flexible joints and are
absolutely competitive.
Irrigation and water supply projects, drainage systems, liquid chemical systems, oil supplies or
other mega projects involving the use of pipes find optimum benefits in the use of KMC Hume
Pipes.
Pre Cast concrete panels are most in vogue at most construction sites everywhere in the world as
they effectively eliminate the expanse of time and are simpler to use than in conventional die and
cast methods. KMC custom manufactures various kinds of Pre Cast panels using highly
sophisticated manufacturing systems to ensure absolute precision.
Use of precast concrete in construction is assuredly economic, structurally sound, durable and an
architecturally versatile method of construction. Use of Precasts as an industrialised form of
construction has abundant and inherent advantages over conventional methods of onsite die and
cast. Precasts save a lot of time, involve less expenditure, allow for reuse of moulds and yield
less wastage by involving optimum usage of raw materials.
They also ensure structural efficiency with longer spans and shallower construction depths
enabling flexibility and extended construction life. They also allow for greater leverage when
facilitating transformations without major interventions into load bearing structures.
KMC Pre Cast concrete panels are manufactured overseeing essential elements such as Structural
Aspects of Design and Performance issues such as Thermal Performance, Moisture Protection,
Fire Safety, Acoustics, Finish and Durability and Maintainability. Our panels are available in
various finishes and architectural shapes and can be used across a variety of constructions .
45
CHAPTER – 4
46
CHARACTERISTICS OF SAMPLE:
AGE:
Below 30
30 - 40
40 - 50
Above 50
Interpretation:
The Company does not take freshers from colleges / universities, only experienced candidates are
hired even at operational designations.
The Company believes in internal promotions for higher positions than hiring externally.
Since the compensation offered is slightly higher than market rate, employees prefer to stay in the
company and as a result, large numbers of employees remain in middle two age ranges and only best
lot goes to higher positions.
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Duration of Service:
Duration Of Service
0 - 5 years
6 - 10 years
11 - 15 years
Above 15 years
Interpretation:
The Company believes in internal promotions for higher positions than hiring externally.
Since the compensation offered is slightly higher than market rate, employees prefer to stay in the
company and as a result, large numbers of employees remain in middle two ranges and only best lot
goes to higher positions.
48
Departments and Gender composition:
40
35
30
25
20 Male
Female
15
10
0
Finance Accounts Taxation HR Administration
49
With eyes closed, can you recite your organization's vision?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that 74% of employees agree that they are aware of the
organization’s vision. By this we can conclude that employees will ensure that their work
contributes the organization to accomplish its vision.
50
I clearly understand the mission and values of the organization and how I contribute to each.
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
STRONGLY AGREE
AGREE
NO OPINION
DISAGREE
STRONGLY DISAGREE
51
Do you believe the leaders at top level live authentically by your organizational values?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Strongly Agree
Agree
NoOpinion
Disagree
Strongly Disagree
Interpretation: We observe that 72% of employees believe that their leaders follow the
organization’s values. The top management has set an example by following the policies they
themselves frame and implement. However, the rest 28% employees believe otherwise.
52
Do you believe your manager has your best interests in his mind?
a) Strongly agree b) Agree c) No opinion d) Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that 71% of employees agree that their managers
treat them in their best interests and motivate them. Apart from the leaders, the
managers are also following the policies of the organization.
53
Do you voluntarily take responsibilities out of your job description?
a) Never b) Almost never c) Sometimes d) Fairly often e) Very often
Strongly Agree
Agree
NoOpinion
Disagree
Strongly Disagree
54
Do you have Autonomy (freedom) to choose how to perform your job in best manner?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
AUTONOMY AT WORK?
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that only 32% employees feel they don’t have
autonomy in their job. 68% of employees have job freedom which implies that they
will be less stressful while doing their job, thereby resulting in high productivity
55
Were your ideas or suggestions given to your managers got valued or implemented?
A Strongly agree b) Agree c) No opinion d) Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that 40% of employees agree that their voice is
valued in the organization. By this we can conclude that those employees who gave
suggestions, their views were considered.
[On interacting with the “No Opinion” category employees, they said that they
did not get a situation in their job till now where they had to give suggestions to
their superiors]
56
Do you believe this is a great company for your personal and professional development?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We observe that 73.5% employees believe that the present organization they
work for helps them in their personal as well as professional development, thereby enabling
good work life balance. By this we can conclude that employees will prefer to stay in the
company for longer duration and serve the organization.
57
How would you rate your work-life balance?
a) Balanced b) Moderately balanced c) Not balanced
Balanced
Moderately Balanced
Not Balanced
Interpretation: We can observe that 55% employees have a work life balance while
remaining have moderate balance. By this we can conclude that most of them are
able to very well manage their work life balance.
58
Do you have access to the learning, training and development you need to do your job well?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that 75% employees believe that they have access to training
required to perform their jobs in effective manner. By this we can conclude that the company
focuses on building an individual employee’s competencies and career.
59
How often do you receive recognition, praise or constructive criticism? a)
a Very often b) Often c) Sometimes d) Never e) Almost Never
FEEDBACK ON WORK?
Very Often
Often
Sometimes
Almost Never
Never
Interpretation: We can observe that 56% employees often receive feedback on their
work while 24% sometimes get the feedback. By this we can conclude that employees
get guidance from their seniors to improve their skills, in addition to training and
development programs provided by organization.
60
I foresee myself working here two years from now?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Stronlgy Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We observe that 86% of employees are certain that they will work
in the organization for next two years. It implies that organization has good work
culture, good compensation, good retention strategies and thereby less attrition
rate.
61
How often do you think about looking for a job at another company?
a) Very often b) Often c) Sometimes d) Never e) Almost Never
Very Often
Often
Sometimes
Almost Never
Never
Interpretation: We can observe that 65% employees never think of job change to other
organizations. This means employees are strongly engaged to the organization and are happy to
work for it.
62
Would you refer someone to work here?
a) Yes b) No c) Cannot Say
Yes
No
Cannot Say
Interpretation: We can observe that 63% of employees agree that they would refer people
whom they know to work for this organization. This shows the bond the employees have with
their organization and also, the organization is successful in engaging and satisfying its internal
customers.
63
Do you have a clear understanding of your career or promotion path?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that 80% of employees are clear about their
career roles and promotion. By this we can conclude that the organization has
oriented employees about their career very well.
64
Do you attend the engagement activities conducted?
A Very often b) Often c) Sometimes d) Never e) Almost Never
Very Often
Often
Sometimes
Almost Never
Never
Interpretation: We can observe that 65% of employees attend the engagement activities
conducted and 14% never attend. By this we can conclude that most employees are interested in
the engagement activities conducted by the organization.
65
How often do you think the engagement activities should be conducted?
A Once in a month b) Twice in a month c) Once in a week
Once in a month
Twice in a month
Once in a week
Interpretation: We can observe that 58% of employees want the engagement activities to be
conducted twice in a month. By this we can conclude that frequent activities will make
employees more engaged to the organization and also encourage team building and
participation among employees.
[Note: The current practice of the organization is to conduct engagement activities once in a month]
66
Do you feel the present organization and the present job is the place where you actually belong to?
a) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree
Interpretation: We can observe that 69% of employees feel that they are in the
right organization and this positive feeling will create a better bond between them
and the organization.
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CHAPTER – 5
68
FINDINGS
Engaged employees enable successful implementation of business strategies, values and vision, they fuel
higher levels of business performance. Fully engaged workforce is loyal and will align their efforts with
organization’s goals to place the employer in a better position in the competitive industry.
I found that:
Employees have a clear understanding of the organization’s vision, mission and values.
The top management has set an example by following the policies they themselves frame and
implement.
The middle level management is compassionate to their subordinates and also takes their views and
suggestions into consideration.
The employees have freedom to do the work in their way which resulted in less stress levels and thereby
effective work life balance.
Majority of employees believe that the present organization helps them in their personal as well
as professional development.
Majority of employees agree to take responsibilities beyond their job descriptions there by
showing extra commitment towards work.
Many employees never think of job change to other organizations. This means employees are strongly
engaged to the organization and are happy to work for it.
Majority of employees attend the engagement activities conducted. Many employees want the engagement
activities to be conducted twice in a month.
Majority of employees feel that they are in the right organization and this positive feeling creates a better
bond between them and the organization.
69
SUGGESTIONS
Employee engagement is a complex tapestry whose threads, if pulled, will unravel in ways that are difficult
to predict. The final result could be beautiful or it could be a disaster as they may even leave the
organization.
70
CONCLUSIONS
Employee engagement is important for any employer who aims to retain its talented employees and
thereby achieve enhanced business gains and high level of performance. Employee engagement is linked
with the emotional, cognitive and physical aspects of work and how these factors integrated.
The performance of organizations with highly engaged employees is higher than the organizations with
low engagement. Engagement is a great predictor of future performance and survival of the
organization. Engagement drives profits in turbulent conditions. The contribution of employees in terms
of enhanced performance helps an organization to win over difficult times.
The concept of engagement should not be regarded as just another HR strategy. Employee’s engagement
is a long term process and linked to core tenants of organization like values, culture, vision etc.
employees require to be adopting in a working environment which will lead them to display behavior
that organizations are looking for. Aside from the personal drive and motivation to make a contribution,
employee needs to understand where to focus their efforts. Without a clear strategy and direction from
senior leadership, employees will waste their time on activities that do not make a difference for
organization’s success. An organization has to promote the factors which have a positive effect on
engagement through every business activity they do.
Organization should frame its policies and culture such that an employee experiences engagement with
the organization right from the time he gets recruited to till end of his employment.
A vast majority of leaders agree that the employees are a company’s most important asset. But that is
true only when the majority of the workforce is fully engaged in their work. If not, they are either adding
minimal value or actively working against the organization.
Therefore, Human Resource staff wants the best workers to be engaged in a way that best benefits the
company and thus, for any Human Resources staff, employee engagement and its role in the workplace
is of major importance.
“You don’t build a business. You build people and those people build the business”
71
CHAPTER – 6
BIBLIOGRAPHY
72
BIBLIOGRAPHY
73
Websites
http://kmcgroup.co.in/
https://www.forbes.com/sites/brentgleeson/2017/10/15/5-powerful-steps-to-
improve-employee-engagement/#dc84cd3341d5
https://www.hni.com/blog/bid/45572/the-10-c-s-of-employee-engagement
https://unicornhro.com/blog/employee-engagement-and-what-it-means-for-
hr/
https://www.custominsight.com/employee-engagement-survey/what-is-
employee-engagement.asp
https://gethppy.com/employee-engagement/25-employee-engagement-ideas
https://survey.sogosurvey.com/Survey.aspx?k=RQsXSUPsSVRsPsPsP&Lang
=0&Status=&Data=&Dir=PRV&Uid=19461960&rnd2=3&rnd=1570.30819650
58539
https://www.employment-studies.co.uk/system/files/resources/files/469.pdf
https://eprints.kingston.ac.uk/4192/1/19wempen.pdf
74
SURVEY ON EMPLOYEE ENGAGEMENT
Age: Gender:
Designation: Department:
I clearly understand the mission and values of the organization and how I contribute to each.
b) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Do you believe the leaders at top level live authentically by your organizational values?
A Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Do you believe your manager has your best interests in his mind?
Do you have Autonomy (freedom) to choose how to perform your job in best manner?
b) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
Were your ideas or suggestions given to your managers got valued or implemented?
A Strongly agree b) Agree c) No opinion d) Disagree e) Strongly disagree
Do you believe this is a great company for your personal and professional development?
b) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
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How would you rate your work-life balance?
b) Balanced b) Moderately balanced c) Not balanced
Do you have access to the learning, training and development you need to do your job well?
b) Strongly agree b) Agree c) No opinion d)Disagree e) Strongly disagree
How often do you think about looking for a job at another company?
b) Never b) Almost never c) Sometimes d) Fairly often e) Very often
Do you feel the present organization and the present job is the place where you actually belong to?
Thank you for your time and efforts, have a good day!!!
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