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PROJECT REPORT
ON
A STUDY OF LEVEL OF EMPOYEES ENGAGEMENT
Undertaken
At
ABC BEARINGS LTD. (BHARUCH)
Submitted To:
SIGMA INSTITUTE OF MANAGEMENT STUDIES (Vadodara)
Affiliated to
Gujarat Technological University, Ahmadabad
IN PARTIAL FULLFILLMENT FOR THE DEGREE OF
SEM VI
Batch 2009-11
Sigma Institute of Management Studies |
PREFACE
This report will serve as a detailed comparative study Employee Engagement at various
hierarchical levels at ABC Bearing Ltd. Company. This survey includes brief description of how
employees are made more participative in the company and what are the new strategies being
used for Employee Engagement.
This Project report survey reflects a strategic Employee Engagement focus taken by the company
at various hierarchical levels. Respondents includes employees, manager etc.
Five parameters are covered in the study: company, department, job, superior, and coworker.
ACKNOWLEDGEMENT
The satisfaction and happiness that accompany the successful completion of any task would be
incomplete without mentioning the people who made it possible, whose consistent guidance and
encouragement crowned the efforts with success.
It gives us great contentment in submitting our Grand Project report on the subject matter A
Study of level of Employees Engagement at ABC Bearings Ltd., which is carried out as a
partial fulfillment for the degree of Masters of Business Administration in Human Resource
Management at Sigma Institute of Management, affiliated to Gujarat Technological
University.
We owe a great many thanks to a great many people who helped and supported us in completing
this project.
We deeply thanks to Asst. Prof. Ms. Shirufi Daruwala the Guide of the project for guiding and
correcting various documents of our with attention and care. She has taken pain to go through the
project and make necessary correction as and when needed.
We express our thanks to the In charge Director Mr. Arun Shah of, Sigma Institute of
Management, Vadodara, for extending his support.
We gave a deep sense of gratitude to Mr. Ramsinh. J. Parmar (G.M of H.R Department), at
ABC Ltd. support and allowing us for doing survey in the company. Thanks and appreciation to
the helpful people at ABC Bearings Ltd., for their support.
We would also thanks to our Institution and our other faculty members without whom
this project would have been a distant reality.
EXECUTIVE SUMMARY
The worlds top-performing organizations understand that employee engagement is a
force that drives business outcomes. Success today requires a good bit more than good
attendance. Yet, multiple studies in different countries and across industries show that employees
who are passionate about their jobs and the organizations in which they work are in the minority.
The concept of engagement is a natural evolution of past research on high-involvement,
empowerment, job motivation, organizational commitment, and trust. All of these research
streams focus on the perceptions and attitudes of employees about the work environment. In
some ways, there are variations on the same fundamental issue. Engaging employees requires a
year-round focus on changing behaviors, processes, and systems to anticipate and respond to
your organizations needs.
For the purpose of this study, we defined Employee Engagement as
Employee Engagement is the means or strategy, by which an organization seeks to build a
partnership between the organization and its employees, such that:
and
The organization respects the personal aspirations and ambitions of its employees.
In todays changing economic landscape, recruiting, retaining and motivating top talent is
extremely important and the best way to do it seems to be through engagement.
An organization cannot grow without the commitment and engagement of its employees.
Employee engagement is the level of commitment and involvement an employee has towards the
organization and its values. An engaged employee is aware of business needs, and works as a
team to get the job done. It shows the positive attitude of the employees towards the organization
and its values.
There are three main categories of employee engagement. Actively Engaged, Not Engaged,
and Actively Disengaged.
The Title of the project report is A STUDY OF LEVEL OF EMPLOYEE ENGAGEMENT
at ABC BEARINGS Ltd.
The Primary objective of the study is to A Study of Employee Engagement at ABC
BEARING Ltd. The Secondary objectives are to determine the level of engagement of the
respondents regarding their job. To study the various factors which influence employee
engagement from HR perspective. Examine the effect of engagement on individual outcomes. To
give suggestions to the corporate to acknowledge and enhance their employees engagement
level.
The Research Design of this project study is Descriptive. Out of 200 employees, this study was
carried out taking into account of only 50 employees. Data has been collected through structured
questionnaire which contains 16 questions.
The Findings of the study Employees do not finds good the growth opportunities and also they
are not fairly satisfied with the job promotion policy of the organization. The employees are
overall satisfied with their department. Employees feel the companys environment is safe, and
also says that their company values their customers. The company has the centralize process of
decision making due to which employees are not satisfied. The employees dont found the
training and the compensation of the company is good. The company keeps their employees well
equipped and also uses the talents and skills of the employees well. The employees are
moderately satisfied with their superior. The employees found their co-workers in the company
are having friendly nature.
So, the Suggestion from this that most of the respondents are dissatisfied with the training
program me provided by the company. So the company should try to make improvements in this
part so the employees can get good knowledge regarding their work. The compensation policy as
well as the job promotion policy of the company is weak so the company should try to focus on
this need of the employees and should make the policy that concerns and suits the employees.
The company should also try to create the decentralized decision making atmosphere and should
count the employees suggestions in decision making. The companys superiors should try to be
in touch with the employees and try to give them regular feedback and recognition.
TABLE OF CONTENTS
Sr. No.
TOPIC
Page No.
1.
COMPANY PROFILE
10-11
2.
REVIEW OF LITERATURE
12-34
3.
RESEARCH METHODOLOGY
35-37
35
Problem Identification
35
35
36
36
36
37
4.
5.
FINDINGS
60
6.
CONCLUSIONS
61
7.
SUGGESTIONS
62
Bibliography
63
Appendix
38-59
64-66
Sr.
No.
Page.
No.
Page
No.
1.
Table 4.1
38-39
Chart 4.1
40
2.
Table 4.2
40
Chart 4.2
41
3.
Table 4.3
41
Chart 4.3
42
4.
Table 4.4
42
Chart 4.4
43
5.
Table 4.5
43
Chart 4.5
44
6.
Table 4.6
44
Chart 4.6
45
7.
Table 4.7
45
Chart 4.7
46
8.
Table 4.8
46
Chart 4.8
47
9.
Table 4.9
47
Chart 4.9
48
10.
Table 4.10
48
Chart 4.10
49
11.
Table 4.11
49
Chart 4.11
50
12.
Table 4.12
50
Chart 4.12
51
13.
Table 4.13
51
Chart 4.13
52
14.
Table 4.14
52
Chart 4.14
53
15.
Table 4.15
53
Chart 4.15
54
16.
Table 4.16
54
Chart 4.16
55
17.
Table 4.17
55
18.
Table 4.18
56
19.
Table 4.19
58
COMPANYS PROFILE
In 1960 a small movement began for the establishment of the Antifriction Bearing
Corporation Limited. A company, which was originally set up to manufacture Ball Thrust
Bearing. Today after a span of three decades, the companys turnover Rs. 1000Cr. It has been a
period of continuous progress & prosperity, a period of putting the best of technical knowledge a
human resources to make available bearings of international Standards.
The manufacturing process at ABC is based on the Japanese model of production
management.
All ABCs plants have been running with ISO 9001 Certification and they got the
certification of QS 9000 through TUV Bayron for better quality performance. The main
customers of the ABC are TATA, ASHOK LEYLOND, SWARAJ MAZDA, ESCORTS,
CROMPTON GREAVES, and VIDEOCON & Govt. of India enterprises like ministry of defense
& the Steel Authority of India Ltd.
The ABC Bearings Ltd. Is located at Bharuch on Baroda- Surat National Highway No.8
Industrialized area of GIDC estate Bharuch.
10
5) Inspection department
6) Marketing department
7) Maintenance department
8) General department
9) Time office
10) Finished goods store
11) EDP
LITERTURE REVIEW
What is Employee Engagement?
Employee engagement can 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.
11
Employee engagement is more than just the current HR 'buzzword'; it is essential. In a highly
competitive market for both customers and talented staff, employee engagement is the current
Holy Grail. Employee Engagement can be defined as, Engagement is the state in which
individuals are emotionally and intellectually committed to the organization as measured by
three primary behaviors: Say, Stay and Strive.
attention in the business community because of correlations between employee engagement and
desirable business outcomes such as retention of talent, customer service, individual
performance, team performance, business unit productivity, and even enterprise-level financial
performance.
Sigma Institute of Management Studies |
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With the advent of the knowledge worker and emphasis on individual talent management (stars),
a term was needed to describe an individual's emotional attachment to the organization, fellow
associates and the job. Thus the birth of the term "employee engagement" which is an individual
emotional phenomenon whereas morale is a group emotional phenomenon of similar
characteristics.
Employee engagement, also called work engagement or worker engagement, is a business
management concept. According to Scarlett Surveys, "Employee Engagement is a measureable
degree of an employee's positive or negative emotional attachment to their job, colleagues and
organization which profoundly influences their willingness to learn & perform at work". Thus
engagement is distinctively different from satisfaction, motivation, culture, climate and opinion
and very difficult to measure.
The employees and their own unique psychological make up and experience. (Personal
Impact)
The employers and their ability to create the conditions that promote employee
Employee engagement creates greater motivation within employees for the work they do and
increases their commitment to the organization. It is about creating an enthusiasm for their roles,
their work and the organization, and ensuring they are aligned with the values of the
organization, well informed and well integrated with their colleagues and the fabric or culture of
the organization. They are describe as follow.
Personal Impact-Employees feel more engaged when they are able to make a unique
contribution, experience empowerment, and have opportunities for personal growth. Past
research concurs that issues such as the ability to impact the work environment and making
meaningful choices in the workplace are critical components of employee empowerment.
Focused Work-Employees feel more engaged when they have clear direction, performance
accountability, and an efficient work environment. Aside from the personal drive and motivation
to make a contribution, employees need to understand where to focus their efforts. Without a
Sigma Institute of Management Studies |
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clear strategy and direction from senior leadership, employees will waste their time on the
activities that do not make a difference for the organizations success. Additionally, even when
direction is in place, employees must receive feedback to ensure that they are on track and being
held accountable for their progress. In particular, employees need to feel that low performance is
not acceptable and that there are consequences for poor performance. Finally, employees want to
work in an environment that is efficient in terms of its time, resources, and budget. Employees
lose faith in the organization when they see excessive waste. For example, employees become
frustrated when they are asked to operate without the necessary resources or waste time in
unnecessary meetings.
Interpersonal Harmony-Employees feel more engaged when they work in a safe and
cooperative environment. By safety, we mean that employee trust one another and quickly
resolve conflicts when they arise. Employees want to be able to rely on each other and focus
their attention on the tasks that really matter. Conflict wastes time and energy and needs to be
dealt with quickly. Some researches also find that trust and interpersonal harmony is a
fundamental underlying principle in the best organizations. Employees also need to cooperate to
get the job done. Partnerships across departments and within the work group ensure that
employees stay informed and get the support they need to do their jobs.
14
Actively Engaged: Engaged employees are enthusiastic about their jobs, loyal, motivated,
committed and productive. They have a strong emotional allegiance to their workplace and are
driven to succeed.
Not Engaged: Not engaged employees are not totally psychologically connected to their
company. They work hard and contribute but are less driven to succeed than their engaged
counterparts and are more likely to engage in absentee behavior and/or leave the company.
Actively Disengaged: Actively disengaged employees are emotionally and cognitively divorced
from their work, they have in a sense checked out although they are physically there. They are
disgruntled, unhappy to be there and their negativity is palpable, infectious and disruptive for the
organization.
According one research of a 2008 Employee Engagement report by Blessing White only 29
percent of workers are actively engaged, 17% were actively disengaged and 54% were not
engaged at work. Employees with the highest level of engagement perform 20 percent better and
are 87 percent less likely to leave the organization, according to a survey by Towers Perrin. A
study by the Hay Group found engaged employees were as much as 43 percent more productive
15
Actively engaged
Not Engaged
Actively Disengaged
17%
29%
54%
Components of EE
Cognitive
Emotional
Behavioral
16
17
empowered so he/she can decision related to their job by doing these they will be motivated to
do their job.
Pay and Other Financial Support: - Every employee in every organization should get proper
remuneration for his/her work. Rather than pay organization should give other financial support
to have good life style. Also give festive advances or loans.
Relation with Boss and With the Colleagues: - Every employee should have good relations
with his boss. Because for one and for another purpose you have to interact with your boss and
with your colleagues if you dont have good relation with them it will have impact on your work
and efficiency.
Support from Union or Association: - Organization should have union or association for
betterment and employee welfare. They are also giving them morale of social support and also
for solving their dispute and conflicts.
service or attitude will be very good and that will increase the customer
satisfaction level
3. Less absenteeism: - Actively engaged employee will have very less or no absenteeism at
workplace.
4. Lower turnover, more retention:- Actively Engagement will reduce the employee
turnover and increase the retention and it can be cost effective for the organization
Sigma Institute of Management Studies |
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5. Higher levels of motivation: - When the employee is Actively Engaged the level of self
motivation can be raised.
6. Higher levels of loyalty and commitment to organization: - Actively engaged
employees loyalty and commitment is much more.
7. Higher propensity to take risk and innovate: - Actively Engaged employee is takes
then risk and innovate and improve his/her work himself/herself.
8. Higher levels of energy and enthusiasm: energy level and enthusiasm of actively
engaged employee is high.
19
* Regular feedback and dialogue with superiors - "Feedback is the key to giving employees a
sense of where theyre going, but many organizations are remarkably bad at giving it."
* Quality of working relationships with peers, superiors, and subordinates - "if employees'
relationship with their managers is fractured, then no amount of perks will persuade the
employees to perform at top levels. Employee engagement is a direct reflection of how
employees feel about their relationship with the boss."
* Perceptions of the ethos and values of the organization - "'Inspiration and values' is the most
important of the six drivers in our Engaged Performance model. Inspirational leadership is the
ultimate perk. In its absence, [it] is unlikely to engage employees."
* Effective Internal Employee Communications The effect of poor internal communications
is seen as its most destructive in global organizations which suffer from employee annexation where the head office in one country is buoyant (since they are closest to the action, know what
is going on, and are heavily engaged) but its annexes (who are furthest away from the action and
know little about what is happening) are dis-engaged. In the worst case, employee annexation
can be very destructive when the head office attributes the annex's low engagement to its poor
performance. When its poor performance is really due to its poor communications.
* Reward to engage - Look at employee benefits and acknowledge the role of incentives. "An
incentive to reward good work is a tried and test way of boosting staff morale and enhancing
engagement." There are a range of tactics you can employ to ensure your incentive scheme hits
the mark with your workforce such as: Setting realistic targets, selecting the right rewards for
your incentive programme, communicating the scheme effectively and frequently, have lots of
winners and reward all achievers, encouraging sustained effort, present awards publicly and
evaluate the incentive scheme regularly.
20
Employee engagement surveys are good tool for soliciting the ideas and opinions of Employees.
It communicates to employees what senior management deems important. It provides data
which helps to understand organization and work groups strengths and opportunities for
improvement. It provides baseline, historic and normative comparisons so we can know
how the organization is doing compared to others. Employee surveys, in and of themselves
however, dont create fully engaged or committed employees.
The idea of creating a more engaged workforce is not a new idea. For more than 20 years
managers have been looking at the organizational factors, which engage (or disengage)
employees. Research studies have been conducted to determine the link, if any, between an
engaged workforce and organizational performance.
inconclusive, there is a growing body of work that suggests a link between employee
engagement and organizational performance does exist.
Coffman
survey questions
on
engagement, also worked in business units with higher levels of productivity, profit,
retention and customer satisfaction. These researchers also found that the manager, not the
pay, benefits, perks, etc. was the key in building and sustaining a strong workplace.
The Employee Engagement Strategy is an action planning strategy that categorizes survey items
based on three levels or tiers of employee engagement. The tiers of engagement are based on
motivational theories that suggest certain factors need to be met before employee can achieve a
level of satisfaction with their job and the company.
Action planning is a critical component of any survey process (i.e., employee, customer, or 360`
feedback). Without follow through and implementation of action steps, the survey becomes an
exercise executed on a periodic basis instead of a process designed to identify opportunities to
improve the overall health of the employee population.
Survey items are divided into the three tiers, each tier addressing higher organizational needs.
Models of human functioning and employee motivation, such as Maslows hierarchical theory
of needs (physiological, safety, love, esteem, and self motivation.), Alderfers ERG model
(existence, relatedness, and growth) and Hezerbergs Two Factor Theory (hygiene and
motivators) have been used to form the basis of the Employee Engagement Strategy. All three
Sigma Institute of Management Studies |
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models describe different levels of fulfillment starting with the basic or necessary-for-survival
needs.
MASLOWS HIERARCHY OF NEEDS THEORY
The psychologist Abraham Maslow developed a theory that suggests we, humans, are
motivated to satisfy five basic needs. These needs are arranged in a hierarchy. Maslow suggests
that we seek first to satisfy the lowest level of needs. Once this is done, we seek to satisfy each
higher level of need until we have satisfied all five needs.
1) With Maslow's theory, an employee's beginning emphasis on the lower order needs of
physiology and security makes sense. Generally, a person beginning their career will be very
concerned with physiological needs such as adequate wages and stable income and security
22
needs such as benefits and a safe work environment. We all want a good salary to meet the needs
of our family and we want to work in a stable environment. Employees whose lowest level needs
have not been met will make job decisions based on compensation, safety, or stability concerns.
Also, employees will revert to satisfying their lowest level needs when these needs are no longer
met or are threatened (such as during an economic downturn).
This places an extra obligation on managers to act humanely when difficult organizational
decisions such as staff reductions have to be implemented. Callous implementation of difficult
decisions will cause the remaining employees in the organization to feel threatened about the
ability or desire of the organization to continue to meet their physiological and security needs.
2) Once these basic needs are met, the employee will want his "belongingness" (or social) needs
met. The level of social interaction an employee desires will vary based on whether the employee
is an introvert or extrovert. The key point is that employees desire to work in an environment
where they are accepted in the organization and have some interaction with others. This means
effective interpersonal relations are necessary.
Managers can create an environment where staff cooperation is rewarded. This will encourage
interpersonal effectiveness. Ongoing managerial communication about operational matters is
also an important component of meeting employee's social needs. Employees who are "kept in
the dark" about operational matters and the future plans of the organization often feel like they
are an organizational outsider. (This last point is especially important for virtual employees
whose absence from the office puts an extra obligation on managers to keep these employees
engaged in organizational communications.)
3) With these needs satisfied, an employee will want his higher level needs of esteem and selfactualization met. Esteem needs are tied to an employee's image of himself and his desire for the
respect and recognition of others. Even if an individual does not want to move into management,
he probably does not want to do the same exact work for 20 years. He may want to be on a
project team, complete a special task, learn other tasks or duties, or expand his duties in some
manner. Cross-training, job enrichment, and special assignments are popular methods for making
work more rewarding.
23
24
The higher up
the hierarchy of needs one moves the greater the chance for engagement.
IMPLICATIONS FOR MANAGEMENT
If Maslows theory holds, there are some important implications for management. There are
opportunities to motivate employees through management style, job design, company events, and
compensation packages, some examples of which follow:
Physiological Needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase
the essentials of life.
Safety Needs: Create a sense of community via team- based projects and social events.
Esteem Needs: Recognize achievements to make employees feel appreciated and valued. Offer
job titles that convey the importance of the position.
25
Self-Actualization: Provide employees a challenge and the opportunity to reach their full career
potential.
However, not all people are driven by the same needs - at any time different people may be
motivated by entirely different factors. It is important to understand the needs being pursued by
each employee. To engage an employee, the manager must be able to recognize the needs level at
which the employee is operating, and use those needs as levels of engagement.
The Employee Engagement Strategy, an Action Planning Strategy
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1. The first tier or level is a categorization of items that address basic needs of the job. These items
make up the BASIC category of engagement. BASIC items are fundamental to the job. For most
of us, we take for granted, but if left unmet or unfulfilled; employees could become dissatisfied
with their job and the company.
2. The second tier or level is a categorization of items that address growth and development needs.
These items make up the INTERMEDIATE category of engagement. Once the basics are met,
and then employees can focus more on INTERMEDIATE factors. If INTERMEDIATE factors
are fulfilled, satisfaction with the job and the company improve.
3. The third tier or level is a categorization of items that address organizational commitment needs.
These items make up the ADVANCED engagement category. To exceed employees
expectations, ADVANCED factors need to be addressed.
Focusing on BASIC engagement factors provides a solid foundation and focus for action
planning. Managers and organizational leaders can use the results of their employee survey to
focus action planning efforts on traditional survey dimensions such as Quality. Job Satisfaction,
Environment Health and Safety, communications, Management practices, and etc. but can also
use the results to understand the engagement levels of various work groups.
While this strategy follows the hierarchical structure of theories of motivation, one level does not
have to completely fulfill before a manager can work on another level. It simply means that in
order to improve survey results, managers must take a look at the BASIC items and, if low
scores are present, begin working on those items. Showing how much the company is doing for
the community is great (advanced item) but will not improve employee satisfaction and
engagement if the employee`s equipment doesnt work or the employee doesnt feel valued or
respected. Eventually they will become dissatisfied and either leave the company or retreat in
some other way- lower productivity, increased absenteeism, etc.
The use of the three tires or levels of employees engagement in reports and leadership action
planning strategies is designed to further enhance the effectiveness of the employee survey by
layering the responsibility and action of leadership at all levels. Low favorable scores on BASIC
items are included as opportunities for improvement and should receive a higher priority, greater
attention and focus from an action- planning standpoint. Low favorable scores on
INTERMEDIATE items are included as opportunities for improvement as long as all or most the
Sigma Institute of Management Studies |
27
BASIC issues have been addressed or resolved. ADVANCED items should receive priority only
after BASIC and INTRMEDIATE issues have been satisfied. Fully engaged organizations spend
more time working on ADVANCED factors because BASIC and INTERMEDIATE issues have
already been resolved and appear as strengths on survey results.
Instead of just working on the lowest scoring items (lowest favorability) or developing actions
based on corporate-wide issues, as is historically practiced, managers can use the Employee
Engagement Strategy to focus action planning efforts on things that matter most to employee and
will receive the greatest return on their investment.
Example of a Fully Engaged Organization
Senior management set in
provided for employee empowerment and ownership. They worked aggressively at recruiting
and hiring only the very best. In order to keep the very best, they developed effective training,
development and incentive programs to support and motivate their employees. And finally,
senior management established an ongoing commitment to solicit employee opinions and
suggestions with an unwavering dedication to making improvements revealed in their
employee survey results.
Employees classified as fully engaged not only have basic requirements of the job fulfilled
and are satisfied with growth and development opportunities but are also engaged in
organizational development.
satisfying higher organizational needs such as being involved in the organizational community,
understanding the competitive positioning of the company, and fostering innovation and
creativity. Fully engaged employees not only display high levels of job satisfaction but also are
enthusiastic about wanting others to join the company.
28
EE diagnostic tool
29
Step I: Listen
The employer must listen to his employees and remember that this is a continuous process. The
information employees supply will provide direction. This is the only way to identify their
specific concerns. When leaders listen, employees respond by becoming more engaged. This
results in increased productivity and employee retention. Engaged employees are much more
likely to be satisfied in their positions, remain with the company, be promoted, and strive for
higher levels of performance.
Step II: Measure current level of employee engagement
Employee engagement needs to be measured at regular intervals in order to track its contribution
to the success of the organization. But measuring the engagement (feedback through surveys)
without planning how to handle the result can lead employees to disengage. It is therefore not
enough to feel the pulsethe action plan is just as essential. Employee engagement satisfaction
surveys determine the current level of employee engagement. A well-administered satisfaction
survey will let us know at what level of engagement the employees are operating. Customizable
employee surveys will provide with a starting point towards the efforts to optimize employee
engagement. The key to successful employee satisfaction surveys is to pay close attention to the
feedback from the staff. It is important that employee engagement is not viewed as a onetime
action. Employee engagement should be a continuous process of measuring, analyzing, defining
and implementing.
The employee survey is a diagnostic tool of choice in the battle for the hearts of employees. After
Hundreds of focus group and thousands of interviews with employees in a variety of industries,
Gallup came up with Q. 12, a twelve-question survey that identifies strong feelings of employee
engagement.
They have identified 12 questions that most effectively measure the links (the Gallup Q12).
1. Do you know what is expected of you at work?
Sigma Institute of Management Studies |
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2. Do you have the materials and equipment you need to do your work right?
3. At work, do you have the opportunity to do what you do best every day?
4. In the last seven days, have you received recognition or praise for doing good work?
5. Does your supervisor, or someone at work, seems to care about you as a person?
6. Is there someone at work who encourages your development?
7. At work, do your opinions seem to count?
8. Does the mission/purpose of your company make you feel your job is important?
9. Are your associates (fellow employees) committed to doing quality work?
10. Do you have a best friend at work?
11. In the last six months, has someone at work talked to you about your progress?
12. In the last year, have you had opportunities at work to learn and grow?
Some of the discussions which come from Gallups questions are: Know what is expected of me at work- employees should know exactly what is expected of
them. If expectations are unclear, employees will inevitably face frustration, and will be open for
other opportunities where they do know what's expected of them, and where their contributions
are measured and recognized. Materials and equipment- Employees need the right tools and
equipment to support their skills, experience and talents & perform their jobs at an optimum
level. Do what I do best every day - Are your employees cast in the right roles? Knowing the
critical demands for every role is a key to ensuring that talents fit those demands.
Supervisor/Someone at work cares -Managers must spend most of their time with their most
productive talent. Many managers give their greatest degree of attention to employees who are
falling behind. Talented, productive people crave time and attention from their managers, and
will leave your company if they have a weak relationship (or no relationship) with their manager
or supervisor.
Co-workers committed to quality.-Many companies arbitrarily put teams together without
considering that employees only psychologically commit to teams if they perceive their team
members will support their high level of commitment and performance. Talented employees set
high standards and depend upon those around them to support their growth toward excellence.
31
Opportunities to learn and grow- The Company should create an environment that encourages
employees to drive towards innovation or to create better systems for more productive results.
Employees satisfaction in turn results primarily from high quality support services and policies
that enable employees to deliver results to customers.
Step II1: - Identify the problem areas
Identify the problem areas to see which are the exact areas, which lead to disengaged employees
Step IV: Taking action to improve employee engagement by acting upon the problem areas
Nothing is more discouraging to employees than to be asked for their feedback and see no
movement toward resolution of their issues. Even the smallest actions taken to address concerns
will let the staff know how their input is valued. Feeling valued will boost morale, motivate and
encourage future input. Taking action starts with listening to employee feedback and a definitive
action plan will need to be put in place finally.
1. REDUCE. The simplest way to achieve simplicity is through thoughtful reduction. What
can you reduce from work and the organization that can enhance employee engagement? Perhaps
you can remove constricting policies or physical barriers between people.
2. ORGANIZE. Organization makes a system of many appear fewer. There are many
variable influencing employee engagement. Strive to organize them into effective categories. For
example I like to organize employee engagement interventions into 3 dimensions: organizational,
leadership, and employee.
32
3. TIME. Savings in time feels like simplicity. Where can time be saved to make work simpler
and yet more productive and powerful?
4. LEARN. Learn all you can about employee engagement. Learn what engages you. Learn
what experts offer. Mostly in a leadership position, learn from the people closest to engagement yourself and the employees!
6. CONTEXT. What lies in the periphery of simplicity is definitely not peripheral. If you
want to enhance engagement look to change the context of work or the working environment and
watch behavior change because of this peripheral change.
7. EMOTION. More emotions are better than less. Emotion is the motion of engagement.
Create emotions of caring and satisfaction and belonging. Let employees know they matter.
8. TRUST. In simplicity we trust. Employee engagement must be based on trust and belief.
Effective employee engagement is based on mutual purpose and benefit for all.
33
9. FAILURE. Some things can never be made simple. As you strive to simplify employee
engagement keep your eyes open for failure and what can be learned from this.
10. THE ONE. Simplicity is about subtracting the obvious, and adding the
meaningful. What obvious drudgery can be removed from work so that the most meaningful of
efforts can be added to the employees effort and experience?
changes in engagement.
Climate Survey-Some organizations like to use engagement measures as simple indexes of
the workplace culture. While more extensive surveys are valuable, sometimes its easier to
focus attention on a few simple and proven factors.
Sigma Institute of Management Studies |
34
RESEARCH METHODOLOGY
TITLE OF THE PROJECT:
A Study of level of Employees Engagement at ABC Bearings Ltd.
PROBLEM IDENTIFICATION:
IT TAKES the actively participation and engagement to spot engagement of others! The small
moon can eclipse the great sun. I, too, can do great things if I set myself in the right place at the
right time..!
In an organization, there is nothing more crucial than fitting the right employee in the right
35
position. When people do jobs that just don't suit their liking, inclination or temperament, the
results, or rather the lack of them will be disastrously obvious. Low productivity, dissatisfaction,
low morale, absenteeism and other negative behavior will become typical till the employee is
shown the door. Or perhaps; there is another option Employee Engagement
A conscious, deliberate approach undertaken to attract, develop and retain people with the
aptitude and abilities to meet current and future organizational need
OBJECTIVES:
Primary Objective:
To measure the Employee Engagement at the ABC Bearing Ltd.
Secondary Objective:
SCOPE OF STUDY:
36
When an organization gets right people, retains them, motivates them, utilizes them and
develops them, it gains competitive advantage, sustains itself and progresses well.
In order for organizations to meet and surpass organizational objectives, employees must
be engaged
The quality of output and competitive advantage of a company depend on the quality of
its people, their sharing of knowledge and contacts.
Data Collection:
Research Design
A plan of proposed study prepared by a researcher stating the research activities to be performed
in this proposed study before he undertakes his research work is called Research Design. The
research Design of this project study was Descriptive.
Sampling Detail
a. Universe / Population:A Universe / population can be defined as a collection of all entities
with predetermined characteristics that the observer is required to
study.
b. Sample Size:
50 Employees
Sample consists of people from each level of hierarchy or
department, such as account department, executives, trainee,
managers.
c. Sample Technique:Simple random sampling: In a Simple random sample of a given
size, allows each possible sample an equal probability of being
picked and each item in the entire population an equal chance of
being included in the sample.
Research Tool
For the purpose of collection of primary data the tools used are:
Structured Questionnaire.
37
Internet
HR websites.
Statistical Tools:
Pie charts.
Bar graphs.
Percentage analysis.
Z- Test.
LIMITATION:
Only 50 respondents from an organization were taken which is less to conduct a survey.
The time was one of the main constraints which come as barrier in the survey because the
project topic is a very huge issue and needs a lot of devotion.
I have no previous good experience in research, despite of that I have done at best of my
knowledge and ability.
The data obtained is qualitative but not quantitative and it is subjected to human error.
Strongly Disagree 1
Disagree 2
Neither Agree nor Disagree 3
Agree 4
Strongly Agree- 5
Table 4.1
Sr.No
Statements
Total
38
Company
1.
50
3
1
2
1
50
5
1
4
1
1
1
50
2
9
4
6
1
6
50
company.
2.
3.
4.
2
1
organization.
50
6
2
4
3
0
3
50
environment.
My department always provides excellent service to the
9
1
5
2
50
customers.
Department.
5.
6.
7.
Job
8.
50
9.
2
1
5
1
50
0
1
9
2
5
7
50
0
-
1
7
50
excellently.
10.
11.
Superior
12.
50
7
1
9
1
50
2
1
3
2
5
9
0
7
50
50
team members.
13.
14.
Co-workers
15.
39
16.
6
2
5
2
50
Options
No. of Respondents
Strongly Disagree
Disagree
2
4
Percentage
(%)
4
8
40
3.
4.
5.
12
23
9
24
46
18
Figure 1.
50
40
S.A
30
No of Employees
20
N A/D
D
10
0
S.D
S.D
N A/D
S.A
Obtions
Interpretation:
When employees were asked that whether they are fully engaged in doing best
work for the organization, then many of them were agreed i.e. 64% and 24% were
neither agreed nor disagreed, and 12% were disagree.
Table 4.3
Sr.
No.
1.
2.
3.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
4
11
14
Percentage
(%)
8
22
28
41
4.
5.
Agree
Strongly Agree
15
6
30
12
Figure 2.
Column1
S.D
D
12%
N A/D
S.A
8%
22%
30%
28%
Interpretation:
When employees were asked that whether their company provides attractive
opportunities for growth and improvement, then 42% of employees were believes
that they get the opportunities for growth and improvement , 28% were neither
agree nor disagree, and but 30% were disagree. This shows that company should
work on providing good opportunities to their employees.
Options
No. of Respondents
Strongly Disagree
11
Percentage
(%)
22
42
2.
3.
4.
5.
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
14
12
12
1
28
24
24
2
Figure 3.
14
12
10
8
6
1400.0%
1100.0%
1200.0%
Column1
1200.0%
4
2
100.0%
0
S.D
N A/D
S.A
Interpretation:
When employees were asked whether the job promotions in their organization is
fair and objective, then, 24% were neither agree nor disagree, and 50% were
disagree. According to the employees perceptions the companies policies for job
promotion are not fair enough, company should make such policies that are based
on equity.
Table 4.5
Sr.
No.
1.
2.
Options
No. of Respondents
Strongly Disagree
Disagree
6
6
Percentage
(%)
12
12
43
3.
4.
5.
9
18
11
18
36
22
Figure 4.
S.A; 22%
S.D; 12%
D; 12%
S.D
D
N A/D
A
N A/D; 18%
S.A
A; 36%
Interpretation:
When employees were asked whether the organization policies are clearly
communicated in the organization, then 58% of employees were agree, 18% were
neither agree nor disagree, and 24% were disagree. This shows that the
communication channel is good in the organization.
Table 4.6
Sr.
No.
1.
2.
Options
No. of Respondents
Strongly Disagree
Disagree
7
10
Percentage
(%)
14
20
44
3.
4.
5.
14
16
3
28
32
6
Figure 5.
16
14
12
10
8
1400.0%
6
4
1600.0%
Column1
1000.0%
700.0%
300.0%
2
0
S.D
N A/D
S.A
Interpretation:
When employees were asked whether their opinions and views are considered in
decision making, then 38% of employees were agree, 28% were neither agree nor
disagree, and 34% were disagree. The employees participation in decision making
is less, so there should be such process that encourages the employees
participations i.e. decentralization should be imply.
Table 4.7
Sr.
No.
1.
2.
3.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
0
3
3
Percentage
(%)
0
6
6
45
4.
5.
Agree
Strongly Agree
25
19
50
38
Figure 6.
25
20
15
2500.0%
1900.0%
10
Column1
5
0
0.0%
S.D
300.0%
D
300.0%
N A/D
S.A
Interpretation:
When employees were asked whether the department provides a safe and clean
working environment, then 88% of employees were agree, 6 % were neither agree
nor disagree, and 6% were disagree. The employees feel that company is focused
towards their health.
Table 4.8
Sr.
No.
1.
2.
3.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
2
3
4
Percentage
(%)
4
6
8
46
4.
5.
Agree
Strongly Agree
25
16
50
32
Figure 7.
S.D 4%
S.A 32%
D 6%
N A/D 8%
S.D
D
N A/D
A
A 50%
S.A
Interpretation:
When employees were asked whether the department always provides excellent
service to the customers, then 82% of employees were agree, 8% were neither
agree nor disagree, and 10% were disagree. According to the employees their
department gives value to their customers.
Table 4.9
Sr.
No.
1.
2.
3.
4.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
0
4
9
25
Percentage
(%)
0
8
18
50
47
5.
Strongly Agree
12
24
Figure 8.
25
20
15
2500.0%
Column1
10
5
0
1200.0%
900.0%
400.0%
0.0%
S.D
N A/D
S.A
Interpretation:
When employees were asked whether they get necessary tools and resources to do
their job well, then 74% of employees were agree, 18% were neither agree nor
disagree, and 8% were disagree. From this it shows that organization maintains
their employees well equipped.
Table 4.10
Sr.
No.
1.
2.
3.
4.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
3
3
15
19
Percentage
(%)
6
6
30
38
48
5.
Strongly Agree
10
20
Figure 9.
S.A 20%
S.D 6%
D 6%
S.D
N A/D 30%
D
N A/D
A 38%
A
S.A
Interpretation:
When employees were asked whether they get required training necessary to do
their job excellently, then 58% of employees were agree, 30% were neither agree
nor disagree, and 12% were disagree. According to the employees perceptions, the
organizations training and development program me is well designed but it still
needs some sort of modifications.
10.
Table 4.11
Sr.
No.
1.
2.
3.
4.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
6
6
7
21
Percentage
(%)
12
12
14
42
49
5.
Strongly Agree
10
20
Figure 10.
S.A 20%
S.D 12%
D 12%
S.D
D
N A/D
N A/D 14%
A
S.A
A 42%
Interpretation:
When employees were asked whether their talents and abilities are used well in
their current position, then 62% of employees were agree, 14% were neither agree
nor disagree, and 24% were disagree. According to the employees that organization
is fairly good at talent management.
11.
Table 4.12
Sr.
No.
1.
2.
3.
4.
5.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
18
6
19
7
-
Percentage
(%)
36
12
38
14
-
50
Figure 11.
20
15
10
Column1
5
0
S.D
N A/D
S.A
Interpretation:
When employees were asked whether they are satisfied with the pay and benefits
given by the company, then 14% of employees were agree, 38% were neither agree
nor disagree, and 48% were disagree. According to the employees the
compensation provided by the organization is poor. So the organization must make
such policies that give good compensation to the employees.
12.
Table 4.13
Sr.
No.
1.
2.
3.
4.
5.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
2
5
19
17
7
Percentage
(%)
4
10
38
34
14
51
Figure 12.
20
18
16
14
12
10
8
6
4
2
0
1900.0%
200.0%
S.D
700.0%
500.0%
Column1
1700.0%
N A/D
S.A
Interpretation:
When employees were asked whether their superior has a friendly working
relationship with all team members, then 48% of employees were agree, 38% were
neither agree nor disagree, and 14% were disagree. This shows that working
environment in the organization is fair and friendly. But still superiors are required to
focus towards the working environment.
13.
Table 4.14
Sr.
No.
1.
2.
3.
4.
5.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
0
10
15
13
12
Percentage
(%)
0
20
30
26
24
52
Figure 13.
16
14
12
10
1500.0%
8
6
1300.0%
1000.0%
1200.0%
Series 1
4
2
0
0.0%
S.D
N A/D
S.A
Interpretation:
When employees were asked whether their superior gives them regular feedback
on their work, then 50% of employees were agree, 30% were neither agree nor
disagree, and 20% were disagree. The superiors are required to increase the regular
base feedback to the employees.
14.
Table 4.15
Sr.
No.
1.
2.
3.
4.
5.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
1
7
9
23
10
Percentage
(%)
2
14
18
46
20
53
Figure 14.
25
20
15
23
Column1
10
5
0
10
7
1
S.D
N A/D
S.A
Interpretation:
When employees were asked whether their superior regularly recognizes them for
doing a good job, then 66% of employees were agree, 18% were neither agree nor
disagree, and 16% were disagree. The appraisal and reward system is good enough
by which employees are satisfied.
15.
Table 4.16
Sr.
No.
1.
2.
3.
4.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
2
2
5
25
Percentage
(%)
4
4
10
50
54
5.
Strongly Agree
16
32
Figure15.
S.D 4% D 4%
S.A 32%
N A/D 10%
S.D
D
N A/D
A
A 50%
S.A
Interpretation:
When employees were asked whether their co-worker cooperates in task whenever
needed, then 82% of employees were agree, 10% were neither agree nor disagree,
and 8% were disagree. The organization has the helping environment.
16.
Table 4.17
Sr.
No.
1.
2.
3.
4.
Options
No. of Respondents
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
1
1
5
20
Percentage
(%)
2
2
10
40
55
5.
Strongly Agree
23
46
Figure16.
2%
2%
10%
S.D
D
46%
N A/D
A
40%
S.A
Interpretation:
When employees were asked whether their co-worker share information and new
ideas with them, then 86% of employees were agree, 10% were neither agree nor
disagree, and 4% were disagree. According to the employees the organization has
the excellent environment of sharing of datas.
Likert Scale is used in this study for ranking the options. Likert Scale is a measurement scale
with five response categories from Strongly Agree to Strongly Disagree and gives rank to
each response. According to Likert Scale, following rank will be given:
Table 4.18
Responses
Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Rank given
5
4
3
2
56
Strongly Disagree
Table 4.19
Sr.No
Statements
S.
A
NA/
D
D
A
S.
D
Total
18
23
12
50
12
15
14
11
50
12
12
14
11
50
22
18
50
16
14
10
50
38
25
50
32
25
50
24
25
50
20
19
15
50
20
21
50
19
18
50
14
17
19
50
24
13
15
10
50
20
23
50
32
25
50
Company
1.
2.
3.
4.
Department.
5.
6.
7.
Job
8.
9.
10.
11.
Superior
12.
13.
14.
Co-workers
15.
57
16.
46
20
50
33
0
30
4
171
95
69
969
Percentage analysis:
= 969
100
1600
= 60.56
=
61% Approx.
The Employees at ABC Bearings Ltd. Company are 61% engaged in giving their best and
fulfilling the goals of the company.
z - Test:
z - Test is one of the statistical tool for hypothesis which is used when the sample size is 30 or
more than 30. Since, in this project study, sample size is limited to 50 employees, z Test will be
applied here.
58
Sample mean =
Xi
n
1600
50
= 32
Table 4.20
Sr. No.
1.
2.
165
304
27225
92416
3.
171
4.
32
32
x-x
133
272
(x-x)
17689
73984
29241
32
139
19321
95
9025
32
63
3969
5.
65
4225
32
33
1089
Total
530
162132
160
640
116052
Calculation:
Sample Variance: S =
( xx )
n1
116052
51
29103
S = 29103
Therefore = S = 170.33
Z=
x H 0
x
Therefore
= n
170.33
50
170.33
7.071
= 24.09
59
Z=
x H 0
x
320 .61
24.09
31.39
24.09
Therefore z = 1.30
Calculated Value = 1.30
Observed Value = 1.96
Inference:
Since calculated value 1.30 at 5% of significant level is lesser than the Table Value i.e. 1.96,
therefore the null hypotheseis i.e. H is accepted.
60
FINDINGS
The employees in ABC Bearings Ltd. Are fully engaged in doing their best work for the
company (i.e. 64% of employees agreed) and there is good communication channel in the
organization (i.e. 58% of employees agreed).
Employees do not finds good the growth opportunities and also they are not fairly
satisfied with the job promotion policy of the organization (i.e. 50% of employees
disagreed).
The employees are overall satisfied with their department. This helps in maintain them
engaged in doing best for the organization. Employees feel the companys environment is
safe, and also says that their company values their customers.
The company has the centralize process of decision making due to which employees are
not satisfied.
The employees dont found the training and the compensation of the company is good
(i.e. 48% of employees disagreed).
The company keeps their employees well equipped and also uses the talents and skills of
the employees well.
The employees are moderately satisfied with their superior.
The employees found their co-workers in the company are having friendly nature.
CONCLUSIONS
Sigma Institute of Management Studies |
61
Employee engagement is a strategic approach supported by tactics for driving improvement and
organizational change. Engaged employees performs better, put in extra efforts to help get the
job done, show a strong level of commitment to the organization, and are more motivated and
optimistic about their work goals. The most valuable resource (i.e. employees) of a company
walks out of the door every evening and sometimes it never comes back (concept of employee
retention) - This is of particular importance in knowledge and service based industries. The
quality of output and competitive advantage of a company depend on the quality of its people,
their sharing of knowledge and contacts.
This study was carried out to measure the level of employees engagement at ABC
Bearings Ltd. From the critical analysis it was found that about 61 % of
employees were engaged in the company
employees, productivity, levels of customer approval and service quality , reliability , confidence
to express new ideas, organizational loyalty, less employee turnover and lower absenteeism.
And also it is seen that company is much focused towards their customers requirements and also
in providing safe and healthy working environment to the employees. And this shows how long
will employee will retain with the company.
SUGGESTIONS
Sigma Institute of Management Studies |
62
BIBLIOGRAPHY
63
Levin Richard I. & Rubin David S. (Seventh Edition), Statistics For Management
www.google.com
www.wikipedia.com
www.scribd.com
www.citehr.com
APPENDIX
QUESTIONNAIRE
SURVEY OF EMPLOYEE ENGAGEMENT
64
Dear Sir/Madam,
I DIMPI PATEL and ANKITA SISODIA, doing MBA from SIGMA INSTITUTE OF
MANAGEMENT STUDIES, VADODARA. We would like to carry out our grand project at your
esteemed organization. To get in depth knowledge regarding our topic, we need to undergo a
small survey related to Employee Engagement. So we kindly request you to fill this
questionnaire.
Hereby we declare you that this survey is for the research purpose, not for the personal use. The
information collected from you in this survey will be used only in Educational
purpose.
Please tick mark the relevant answer as provided against each question.
Strongly
Disagree
(1)
Disagree
(2)
Neither Agree
nor Disagree
(3)
Agree
Strongly Agree
(4)
(5)
65
Company
1.
Department
5. My opinions and Views are considered in Decision making.
7.
Job
8. I get necessary tools and resources to do my job well.
11. I am satisfied with the pay and benefits given by the company.
Superior
)66 )
2. What are the areas that need the most improvement in your organization?
67