University of the Philippines Cebu

Business Management Cluster

Final Paper
Employee Engagement on Performance
Promotes Better Workforce Development
and Productivity Increase

In partial fulfillment
of the requirements in
MGT 101 Introduction to Management

Submitted to

Dr. Mary Gretchen F. Chaves

12 December 2014

Group 5
Dupal, Rica Isabel M.

Abstract
This position paper introduces a developing concept of improving work performance
through employee engagement. It gives the definition of employee engagement, discusses
its important role in all types of organization and stands on its position that employee
engagement on performance provides a tremendous impact on the organization and
promotes better workforce development and productivity increase. This paper also shows
the relationship of employee engagement with the contemporary approach of organizations
as being dynamic and involvement-oriented in todays world of business. It provides
methods and some processes that aim to aid organizations attain and improve work
engagement of its employees to create harmonious and efficient workplace which
subsequently helps organizations achieve its goals. Various information on review of related
literature were also stated on this paper. Significant shifts in the global economy have
accelerated the need for organizations to find useful and innovative procedures to accord
new and improved techniques and create competitive advantage which addresses to work
engagement of organizational members that shows the significance of this paper to different
types of organizations.

Introduction
An organization would not exist without its people who do the processes and
transactions that lead to achieving organizational goals. According to Robbins and Coulter,
people are one of the most important assets of an organization. Without human resource, an
organization would not work. A firm relies on the quality and efficiency of workforce of its
employees to put its plans and goals into action and in order for the firm to develop
harmonious workplace and productive workforce, employees need to be engaged and
committed on performance.
In todays world of advancements and technologies, it is easier for new born
companies to compete with others and therefore one needs a competitive advantage for
stability. Employee efficiency is one of the most used competitive advantages by most
companies nowadays. Management from different levels has given importance to the quality
of work an employee offers for the company. Sakovska, a university professor from Aarhus
School of Business and Social Sciences stated on her article that recent studies suggest
how high-involvement work practices can build up the positive attitudes and beliefs
associated with employee engagement on tasks given and that these practices can generate

the kinds of discretionary behaviors that lead to enhanced performance. Simply put,
employees who conceive design and implement workplace and process changes are
engaged employees. These employees, content with their work experience and work
environment, are good formula for success. As a satisfied employee, who wanted to stay
with a company, one will contribute to the workforce stability and productivity. But these have
changed over time. Nowadays, the business environment is composed of simply satisfied
and stable employees who are not enough to bring necessary and needed actions and
results. Satisfied employees may just meet the work demands and job description, but this
will not lead to higher performance as stated by Sakovska (as cited in an article by Abraham,
2012). In order to compete effectively and efficiently, employers need to go beyond
satisfaction and need not satisfice anymore - they must do their best to inspire their
employees to apply their full potential, skills and capabilities to their work because if they do
not, portion of the valuable employees resources remains unavailable and unused for the
company according to an article by Havard Business Review (as cited in Bakker and Leiter,
2010).
Employee engagement is essential to a companys performance and success. There
are extensive studies and researches showing that organizations with high employee
engagement significantly increase their odds of above average and excellent performance
across their businesses and for some not-for-profit organizations, attain their goals.

Position Statement
In order to promote workforce development and productivity increase in
organizations, employees must have engagement and commitment on their performance. I
believe that employee engagement and organization performance and outcomes have a
relative relationship with one another. Through positive attitudes and behavior of the
members of the organization, exists good workplace environment for workers thus,
eliminating conflicts between employees and treat fellow workers with respect and help one
another to perform more effectively and efficiently. Well-engaged and committed employees
toward their fields of work also contribute to achieving success as they work actively;
perform their job well even beyond the requirements of the job and give the best of their
abilities and intellect on their work.

Purpose/Objective of the Study

The purpose of the paper is to provide definition on what employee engagement
means in an organization. It seeks different meanings and reviews on various articles and
researches to give the reader additional information about the topic. Here discussed is the
belief and explanation of the writer that employee engagement on performance is the key to
better workforce development and the answer to growing problems on how to increase
productivity and high-end returns in the modern business world. It also wants to achieve
understanding of the relationship between employee engagement as a unique strategic tool
for contemporary approach of organizations with a dynamic nature and to those
organizations who aim to be one and be involvement-oriented as well. This paper wants to
show the significance of committed employees in accordance with the job requirements,
tasks and positions assigned, behavior towards fellow employees and the organization as a
whole, efficiency and work quality and more importantly the outcome of such actions that
would help the organization attain its goals and in helping such who are investing on the
growth of the company. It also wants to provide and state some processes and methods in
achieving and improving employee engagement in various kinds of organizations and that
the management could influence employees to be more committed and work-efficient.

Significance of the Position Stated

The growing competitive business industry alerts every organization in terms of the
companys growth, competitive advantage amongst a number of competitors and the returns
on investments. Employees being important resources of an organization (Truss, 2008),
need to be taken into account to. Companies today do not just consider employees who
could do their expected job and work demands but need employees who are committed and
have a positive behavior and attitude that goes beyond the satisfaction border of work done.
With highly efficient and well-engaged employees, organizations experience a workplace
environment of lesser conflict and better workforce development as members of the
organization develop cohesiveness amongst each other and help each one hone and
improve their skills, abilities and capabilities that would be useful for workforce development
and could be a companys competitive advantage over the others. Moreover, when
employee engagement on performance increases, productivity also increases.

Review of Related Literature

In this portion of the position paper, the writer shows and discusses the reviews,
articles and researches read and analyzed which are related to the stand the writer claims
that employee engagement on performance is the key to recent problems of companies in
the competitive environment of the business world to develop effective workforce and
increase the organizations productivity in line with its goals.
According to the article by Maryana Savoska of Aaarhus University (2012), one of the
challenges of defining employee engagement is the lack of a universal definition as a
research-focus on employees work engagement is relatively new. However Truss et. al
(2008) stated in the article Employee Engagement (Kingston) that employee engagement as
defined by Khan (1990:694), is the harnessing of organization members selves to their
work roles; in engagement, people employ and express themselves physically, cognitively,
and emotionally during role performances.
The cognitive aspect of employee engagement concerns employees beliefs and
views about the organization, its management, fellow employees and working conditions.
The emotional aspect involves how employees feel about each of those three factors and
whether they have positive or negative attitudes and behaviors toward the management and
members of the organization. The physical aspect of employee engagement concerns the
physical energies or the actions initiated and exerted by individuals to accomplish their
tasks. Thus, according to Kahn (1990) as cited by Sakovska (2012), engagement means to
be psychologically as well as physically present and active when occupying and performing
an organizational roles and works.
In the Harvard Business Review, it is stated that employee engagement has become
a top business priority for senior executives; that in this rapid cycle economy, business
leaders and top level management of business companies know that having a highperforming workforce is essential for growth and survival. These businesses have long been
trying to seek for a competitive advantage necessary for growth and survival of the firm in
the world of business; and according to Heskett, et. Al. (2008), employee engagement on
performance is the answer. They recognize that a highly engaged workforce can increase
innovation, productivity, and bottom-line performance while reducing costs related to hiring
and retention in highly competitive talent markets.

An article on Custom Insight also discussed the components of employee

engagement and its role on business organization. There are two primary factors that drive
employee engagement. These factors are based on statistical analysis and widely supported
by industry research. Engagement with The Organization measures how engaged
employees are with the organization as a whole, and by extension, how they feel about the
top management and co-workers. On the other hand, Engagement with "My Manager" is a
more specific measure of how employees feel about 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.
Through these engagements, strategic alignments and competencies were developed
leading to efficient work that led to high-end returns on investments of business
organizations.
Moreover, while employee engagement is a universal challenge for organizations
across the private and public sectors, nonprofit sectors also need the technique of employee
engagement to increase workforce among organizational members according to an article
published by Accenture (2012). According to Accenture, a disengaged workforce vastly
impacts all industries with lost productivity, a culture of negativity and unhappiness and,
sometimes, loss of key talent and skills. Organizations that fail to take an active approach in
recognizingand rectifyinglow employee engagement see a negative impact to their
business and other types of organization such as not-for-profit, as employees disengage
from their work or, ultimately leave.
Accenture (2012) also discussed in their article that engaged employee devotes extra
effort to complete their work, strives to meet challenging goals, fully dedicated to completing
projects, looks for new ways to contribute to the success of the team and the organization,
provides great service enthusiastically, feels pride in and ownership of work, speaks
positively about role, work and organization to others and recognizes how their work
contributes to organizational success. Countless studies have shown that engaged
employees are more productive, more sharply focused on customers and more likely than
their disengaged counterparts to stay with their organization (Accenture, 2008) and one key
reason for the attention is the existing strong correlation between employee engagement
and overall organizational performance.

According to McMullen (2013) Employee engagement is one of those wonderfully

amorphous concepts whose importance we appreciate before we fully understand what it
means. We believe it can drive productivity, inspire and attract employees, increase
profitability and make companies a better place to work, as well as better corporate citizens.
However, McMullen said that while many companies pursue a variety of initiatives and
competitive strategies, few have reached a tipping point where sustainability gets embedded
in corporate culture and daily business operations.

As McMullen (2013) stated, he emphasized that taking employee engagement to the

next level and embedding sustainability into the business has been a common theme
discussed in recent webinars, panels and industry conferences. However, while people
recognize the challenge, the question of how to implement it remains. According to him,
Sustainability gains have been incremental because few individuals beyond a group of
dedicated true believers have the knowledge, incentive or tools to integrate sustainability into
job functions and everyday decision-making in the organization.

In addition, McMullen (2013) also gave recommendations on how to improve

Employee engagement. First is to make a business case for engaging employees, then
measure engagement and take action on survey results. Companies should also make
managers accountable for engagement. Connecting people with the future and going
beyond compensation to a total rewards mindset were also mentioned by McMullen. He also
suggested to include employees & managers in reward design and in launching, to use
engagement metrics in performance criteria and to communicate the value of what you
have. For McCullens, these rewards and strategies could help organizations of different
kinds develop and improve employee engagement that would eventually aid such
organizations for its growth, productivity and workforce development.
One of the key messages according to McCullens (2008) was that communication
and action are essential components to increase Employee Engagement. This engagement
should be viewed on the basis of satisfaction to the employee and contribution to the
organization as a whole. Without communication between an employee and their manager
about these two areas neither knows what they are trying to achieve. (McCullens, 2008)

Position Analysis
The uncertain and growing business industries nowadays gives every single
organization a threat as more and more companies emerging make it to a great deal of
competition amongst various fields of businesses. Modern companies innovate, use
technological advances and other strategic methods that would provide them a competitive
advantage against competitors. Subsequently, employee engagement has been one of the
most used and most preferred techniques of competitive advantage as the company
treasures and gives importance to one of the most important resources and assets an
organization could have.
However, as companies consider the significance of its employees, it needs a wellengaged and committed employee that would not just do the work demands and tasks
assigned but to go beyond of its job to benefit the company. Employee Engagement as
commonly defined by researchers and scholars is the extent to which employees feel
passionate about their jobs, are committed to the organization, and put discretionary effort
into their work. When one feels passionate on what he or she is doing, the person will
definitely put the best effort he could give and use the best of his abilities, intellect and
capabilities in doing such work. This would definitely be related to an employee who is
committed to the work given, to the organization in which the employee could feel trust
toward the management and other organizational members, and to employee himself as his
efforts and passion could give satisfaction. Through employee engagement, organizational
members offer the best of their abilities to do work efficiently and effectively, satisfy the work
demands and even go beyond what is required. Companies therefore would increase
productivity and high-end returns.
In addition, engaged employees who are passionate about their work are more
willing to help each other and the organization to succeed, to take on added responsibilities
and to invest more effort in their jobs, share information and collaborate with other
employees, so as cohesiveness among the workplace exists as well as to remain with the
organization than employees who are less engaged. Through a harmonious working
environment and a good relationship between the employees, there would be lesser conflicts
that could exist in the organization leading to better workforce development. With
Productivity increase and workforce development promoted and caused by employee
engagement on performance, companies would enable to accomplish its goals.

Business companies are not the only one who could benefit from employee
engagement technique but the other organizations as well such as a not-for-profit
organization. To reiterate, Accenture (2012) also discussed how not-for-profit organizations
and groups give significance to employee engagement. It is stated that engaged employees
and committed ones give extra effort to complete the task given to them and even passed
beyond what is expected, very willing and dedicated to accomplishing plans being laid out by
the organization, completing projects, looks for new ways to contribute to the success of the
organizational groups and the organization itself, devotes great service enthusiastically, feels
pride in completion and ownership of work, speaks positively about role, work and
organization to others, brings positive vibes to other organizational members.
Management and culture of the company plays a great role in influencing employees
to engage themselves on performance. When a company and its management use
contemporary approaches, it is dynamic and involvement-oriented. Organizational members
are more involved when it comes to activities and sometimes decision-making process that
would make the employees feel that they can be trusted and would later on result to
employee engagement. However, if a company does not want a dynamic nature, then it has
a lot of options of techniques on how to influence engagement on employees.

Conclusion
Employee engagement is a property of the relationship between an organization and
its employees. It is defined by most researchers and scholars as the extent to which
employees feel passionate about their jobs, are committed to the organization, and put
discretionary effort into their work which promotes workforce development and productivity
increase in an organization. Its role on the organizations could be a strategic technique or
tool to be a competitive advantage that would help organizations stabilizes its growth and
guards itself from outside threats such as the competitors and eventually would aid
organizations to put plans into action and attain its goals.
An "engaged employee" is one who is fully absorbed by and enthusiastic about
their work and so takes positive action to further the organization's reputation and interests.
An organization with 'high' employee engagement might therefore be expected to outperform
those with 'low' employee engagement, all else being equal. I believe it can drive

productivity, inspire and attract employees, increase profitability and make companies a
better place to work, as well as better corporate citizens. Yet, while many companies pursue
a variety of initiatives, few have reached a tipping point where sustainability gets embedded
in corporate culture and daily business operations. Sustainability gains have been
incremental because few individuals beyond a group of dedicated true believers have the
knowledge, incentive or tools to integrate sustainability into job functions and everyday
decision-making in the organization.

Recommendation
In order for organizations to achieve a more engaged and enabled workforce that
delivers superior results, the following is provided as recommendations for your organization
to consider in getting more focused in improving engagement in your organization.

Companies must link sustainability to business strategy, operating processes and

work functions, engage mid-management and make it relevant to ones day job. In doing
so, employees will be better able to see the possibilities that exist and take actions that
contribute to the overall success. Therefore to attain or improve employee engagement, the
company might want to give surveys to its employees to know if theyre satisfied of their job
and if they have the commitment that could be influenced as to engage employees on their
performance. Communication is also a very crucial factor. Through communication, one
develops relationship with the other. Managers might want to form work teams that would
further increase their competencies and practice group cohesiveness. Rewards and other
compensations could somehow motivate employees. Managers could also provide trainings
and seminars on its employees regarding employee engagement.

After the methods mentioned above, the management should not be able to forget
the evaluation stage. In order for the organization to judge and set a standard if the methods
they have done to improve and attain employee engagement are right and are efficient, the
employees involved should take an evaluation. If the methods would not be as efficient and
effective as what the management wanted to expect, then another strategic decision-making
process, planning and implementing would be recommended to suit the needs of the

company in improving its employee engagement to promote workforce development and

productivity increase on the company.

References
Engage for Success (2014). Retrieved from:
http://www.engageforsuccess.org/about/what-is-employee-engagement/
Custom Insight (2014). Retrieved from:
http://www.custominsight.com/employee-engagement-survey/what-is-employeeengagement.asp
Rickets, Grant (2014) How to Achieve Employee Engagement. Retrieved from:
http://www.greenbiz.com/blog/2014/01/27/how-achieve-employee-engagement-20
Konrad, Alison M. (2006). Engaging Employees Through High-Involvement Practices.
Retrieved from:
http://iveybusinessjournal.com/topics/the-workplace/engaging-employees-throughhigh-involvement-work-practices#.VImZA9KUfVI
Torben, Rick (2012). Current Status of Employee Engagement. Retrieved from:
http://www.torbenrick.eu/blog/employee-engagement/current-status-employeeengagement/
Lambert, James (2012). Engagement Doesnt Need to be Complicated. Retrieved from:
http://www.engageforsuccess.org/wpcontent/uploads/2013/03/Employee_Engagement_JamesLambert_20121.pdf
Articles:
Harvard Business Review Analytic Services (2013). The Impact of Employee
Engagement on Performance
Sakovska, Maryana (2012). Importance of Employee Engagement in Business
Environment

Kular, et. al. (2008). Employee Engagement: A Literature Review

Accenture (2012). Increasing Employee Engagement in Non-Profit Sector
McMullen, Tom (2013). Eight Recommendations to improve Employee Engagement