ABSTRACT
The study investigated the effects of employees’ engagement on organisational performance (A Study of International Glass Industry and Glassforce Plc in Abia State, Nigeria from 2015 to 2017). The study specifically was guided by the following objectives to; ascertain the effects of employee engagement on the performance of international Glass Industry and Glassforce Plc, ascertain the effect of organizational structure of international Glass Industry and Glassforce Plc, establish the relationship between work condition and job security and organizational performance of International Glass Industry and Glassforce Plc and determine the relationship between employees development and organizational performance of International Glass Industry and Glassforce Plc. Survey research design was used for the study and data were gathered through primary and secondary sources. Data were obtained (214) staff from International Glass Industry and (237) staff from Glassforce Plc that gave a population of (451) staff. Taro Yamane formula was adopted to determine the sample size of (101) for International Glass Industry and (111) for Glassforce Plc respondents. Cronbach Apha reliability test was use to test the reliability of the questionnaire distributed to the selected glass manufacturing firms. The data collected were analyzed using both descriptive and inferential statistics. The hypotheses tested in the study were done at 5% significance level and the result showed that; employees’ engagement affects organisational performance; organisational structure affects employees’ engagement Opportunity for Personal Growth. Also Job Security and Employability are organisational commitment variables of International Glass Industry and Glass Force Plc that are positive and significantly related to engagement of the employees in the organisation. The researcher concluded that for organisations to remain productive and competitive among the industry, with sound financial projection, they must secure and sustain the engagement of their employees and this can be accomplish through appropriate recognition and reward, a supportive work community, fairness and justice in the organisation system. Thus, recommends that to ensure that International Glass Industry and Glass Force Plc, continue to maintain a good performance, there is need for the personnel department of the organisation to review the welfare packages of the employees, to ensure that the employees derives job and career satisfaction which will fuel loyalty, focused and keen to take up challenge, and foster productivity.
TABLE OF CONTENTS
Title
Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table
of Contents vi
List
of Tables ix
Abstract x
CHAPTER 1: INTRODUCTION
1.1
Background to the Study 1
1.2 Statement
of the Problem
4
1.3
Objectives of the Study 5
1.4
Research Questions
5
1.5
Research Hypotheses
6
1.6
Significance of the Study
6
1.7
Scope of the Study
7
1.8
Limitations of the Study 8
1.9
Operational Definition of Terms 8
CHATER 2: REVIEW OF
RELATED LITERATURES
2.1 Conceptual Framework 9
2.1.1 The concept of employee engagement
9
2.1.2 Employee engagement and
organizational performance 11
2.1.3 Employee engagement and
performance management 12
2.1.4 Drivers of employee engagement 18
2.1.5 Factors predicting employee
engagement 20
2.1.6 Employee engagement strategies 22
2.1.7 Engagement and competitive
advantage 25
2.1.8
Human resource management practices and employee engagement 27
2.1.9
Organizational socialization and newcomer engagement 30
2.1.10 Organizational support of
employee engagement 32
2.1.11 Human resource support of employee engagement 39
2.2 Theoretical Framework 42
2.2.1 Kahn’s need satisfying
approach 42
2.2.2 Maslach et
al’ s burnout- antithesis approach 44
2.2.3 Harter et
al’s satisfaction-engagement
approach
45
2.2.4 Sak’s multidimensional
approach
46
2.2.5 Job demand- resource
model
47 2.2.6 Management behaviours and
leadership model 48
2.2.7 Application of job
demand-resource model to the study 52
2.3
Empirical Review 53
2.4
Summary of Literature Review 59
2.5
Gap in Literature 60
CHAPTER 3: RESEARCH
METHODOLOGY
3.1
Research Design 62
3.2
Population of the study 62
3.3
Sources of Data 62
3.4
Sample and Sampling procedure 63
3.4.1 Sample size determination 63
3.5
Validity of the Instruments 65
3.6
Reliability of the Instruments 66
3.7
Method of Data Analysis 67
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
4.1
Data Presentation 68
4.2
Data Analysis 69
4.3
Testing of Hypotheses 80
4.7
Discussion of Findings 84
CHAPTER 5: SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary of Findings 90
5.2
Conclusion 91
5.3
Recommendations 92
Reference
94
Appendices 102
LIST OF TABLES
3.1: Coefficient of Correlation of the
Reliability of the Research Instruments 66
4.1 Data
Distribution of Questionnaire 69
4.1.1 Data
Distribution of the Gender Status of the Respondents 69
4.1.2 Data Distribution of Marital Status of the
Respondents 71
4.1.5 Effect
of Employee Engagement on the Performance of international Glass Industry
and Glass Force 73
4.1.6
Effect of Organizational Structure of International Glass Industry and
Glass Force Plc on the Engagement of Their Employees 74
4.1.7:
The Relationship between Organizational Organizational Commitment and
Employee Engagement of International Glass Industry Industry and Glass Force
Plc 76
4.1.8 The Relationship Between Employees Selection
Practices of International Glass Industry and Glass Force Plc and the Engagement of their 77
4.1.9
The Relationship Between Employees Development Practices of
International Glass
Industry and Glass Force Plc and Organizational Performance 79
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Employee
engagement has attracted enormous interest over the past decade or two. Macey,
Wit, Schnerder and Barbera, (2009) commented that “rarely has a term resonated as
strongly with business executives as employee engagement has in recent years”. Indeed,
the subject has grown to become almost omnipresent within the practitioner and
consulting literatures. It is said that; a company that unlocks the secrets of
employee engagement is promised profits beyond its wildest dreams. Employee engagement
is listed as the number one measure of a company’s health (Vance, 2006).
Thus,
in an increasingly competitive environment that continues to become more
dynamic, corporations have almost universally come to the conclusion that their
people hold great, if not the greatest, potential for generating and
maintaining business success. This recognition has emerged among both
practitioners and researchers in the field of strategic human resource
management (SHRM) largely because of the ability of the workforce and human
resource (HR) systems to produce firm-level competencies that create sustainable
competitive advantage that is, those assets and capabilities that are valuable,
rare, unique, and non-substitutable (Barney, 1991).
Therefore, in a turbulent economic environment characterized
by high staff turnover and brain drain, human resources practitioners’ major
challenge is to find ways of attracting and retaining creative and dedicated
staff committed to the organization and to determine which working conditions
stimulate employees to give their best, to be engaged, to go beyond what is
expected and persist in the face of difficulties. In modern organizations
employees are expected to be proactive and show initiative, collaborate
smoothly with others and be committed to high quality performance standards and
to be responsible for their own professional development, (Bakker and
Schaufeli, 2008). Organizations need employees who feel energetic and
dedicated, and who are absorbed by their work. In other words, organizations
need engaged workers.
Hence,
employee engagement is argued to be associated with; a sustainable workload,
feelings of choice and control, appropriate recognition and reward, a
supportive work community, fairness and justice, and meaningful and valued work
(Saks, 2006). Similarly, the factors that most influence employee commitment
are fairness, care and concern for employees, and trust. In order to meet these
criteria, firms have followed a multitude of paths in a quest to connect human
resource and management strategies with bottom-line financial success.
Consequently,
engagement takes place when employees are committed to their job. They are
interested and indeed excited about what they do. It involves loyalty, faith
and pride in the organization, a willingness to advocate for his organization
and a sense of personal responsibility. Global economy has experienced
significant shifts in the recent past which have accelerated the need for
organizations to find innovative ways to address new technological, demographic
and marketplace realities. These shifts made the organizations to reevaluate
costs associated with talent. High workforce performance and organizational
success must be maintained along with changes in strategies.
Furthermore,
managers agree that modern business demands higher productivity and more
efficiency, than in previous times. Companies are trying to increase their
performance in order to place their company ahead of the competitors. At some
point, satisfied employees, content with their work experience, was a good
formula for success, as a satisfied employee, who wanted to stay with a
company, contributed to the workforce stability and productivity, (Sanchez and
McCauley, 2006). But those times have changed. Nowadays, the business
environment is global and competitive and simply satisfied and stable employees
are not enough to bring necessary business results. Satisfied employees may
just meet the work demands, but this will not lead to higher performance,
(Abraham, 2012).
In
order to compete effectively, employers need to go beyond satisfaction,
employers must do their best to inspire their employees to apply their full
potential and capabilities to their work, if they do not, part of the valuable
employees’ resources remains unavailable for the company, (Bakker and Leiter, 2010).
Therefore, modern organizations expect their employees to be full of enthusiasm
and show initiative at work, they want them to take responsibility for their
own development, strive for high quality and performance, be energetic and
dedicated to what they do, in other words companies want their employees be engaged.
Therefore, as earlier stated, the construct of employee engagement has been an
area of interest among many researchers and consultancy firms, and received its
recognition in the management literature and among practitioners.
Conversely,
International Glass Industry and Glass Force seems not to have embarrassed the
theory of employee engagement, as the organization regularly experience high
employee turnover and find it difficult to breakeven, and this has led to
stoppage of production on many occasion especially in International Glass
Industry until the visit of Dr. Okezie Ikpeazu, the Governor of Abia State on
March 25 2016, with the mandate to revitalize the organization and they once
more commence production. More so, on the part of Glass Force, various forms of
employees truancy has being exhibited by their employees on various occasions
portraying lack of engagement and commitment on organisations’ goals and
objectives. To that end, the need to consider the effect of employee engagement
on organizational performance of International Glass Industry and Glass Force
Plc., in Abia State, Nigeria cannot be succinctly stated, in order to adopt and
implement the practical recommendation that will be espoused by the study to
stimulate and maintain the engagement of the employees in these organizations
and on this, the thrust of this research is anchored.
1.2
STATEMENT OF THE PROBLEM
Managers unequivocally agree that this century
demands more efficiency and productivity than any other times in history.
Businesses are striving to increase their performance. Managers have been
grappling with many challenges to succeed putting their company ahead of
competitors. To help managers manage, different scholars, researchers and
consultants have been contributing their part showing the best ways they think
are useful to managers. Therefore, employee engagement has become a hot topic
in recent years. Despite this, there remains a paucity of critical academic
literature on the subject especially in developing countries like Nigeria, and
relatively little is known about how employee engagement can be influenced by
management. Although there is a great deal of interest in engagement, there is
also a good deal of confusion. According to Ortiz, Carbajah, Serrano, Rodrigues-Oubina and
Iglesia (2013) It is imperative to nurture the concept of employee engagement because
labour turnover, or alienation, erodes enthusiasm and commitment of employees
to the organization as often the case in International Glass Industry and Glass
Force Plc.
International Glass Industry and Glass Force
Plc., have shown signs of high labour turn over, low staff morale, social
loafing, lack of innovation, initiatives and other forms of employees’ truancy
in recent times, which have adversely impacted on the performance of the organization.
How can employees’ engagement is sustained, what are the causation factors and
how can its adverse effects on the organization is ameliorated? The quest to
provide answer to these questions and proffer practical recommendations that
will help the organizations to arrest and sustain their employees engagement
necessitated the study: Effects of Employee Engagement on Organizational
Performance: A Study International Glass Industry and Glass Force Plc Abia
State, Nigeria.
1.3
OBJECTIVES OF THE STUDY
The broad objective of
this study is to ascertain the effect of employee engagement on organizational
performance in International Glass Industry and Glass Force Plc. Abia State, Nigeria.
While the specific objectives are to:
i.
ascertain
the effects of employee engagement (loyalty, focused/keen to challenges etc.) on
the performance of International Glass Industry and Glass Force Plc.
ii.
ascertain
the effect organisational structure (centralisation, specialisation, etc.) of
International Glass Industry and Glass Force Plc.
iii.
find out the
relationship between (work condition and job security, etc.) and organizational
performance of International Glass Industry and Glass Force Plc.
iv.
determine
the relationship between employees development
and organizational performance of International Glass Industry and Glass Force
Plc.
1.4
RESEARCH QUESTIONS
The following research questions
were answered by this research:
i.
What are
the effects of employee engagement (loyalty, focused/keen to challenges etc.) on performance of International Glass Industry
and Glass Force Plc?
ii.
What are
the effects of organisational structure (centralisation, specialisation, etc.) of
International Glass Industry and Glass Force Plc on the engagement of their
employees?
iii.
Is there
any relationship between (work condition and job security) and organizational
performance of International Glass Industry and Glass Force Plc?
iv.
What is
the relationship between employees’ development and organizational performance of
International Glass Industry and Glass Force Plc?
1.5
RESEARCH HYPOTHESES
The following hypotheses
were tested in null form:
HO1: Employee engagement (loyalty, focused/keen to challenges etc.) does not
have any significant effect on the performance of International Glass Industry
and Glass Force Plc.
HO2: Organizational structure (centralization, specialization, etc.) of
International Glass Industry and Glass Force Plc does not have any significance
effect on the engagement of their employees.
HO3: There is no significant relationship between (work condition and job
security,) and organizational performance of International Glass Industry and
Glass Force Plc.
HO4: There is no significant relationship between employees’ development and
organizational performance of International Glass Industry and Glass Force Plc.
1.6
SIGNIFICANCE OF THE STUDY
This research will help
the management of both organizations to revitalize the engagement of their
employees which will encourage productivity in the organization. The research
will also help the management to monitor the level of engagement of their
employees and ensure their full devotion to duty, inspiring their employees to
apply their full potential and capabilities to their work, and as such taped on
the valuable resources endowed in their employees which will help to position
the organizations ahead of their competitors admits the industry. The research
will also help to reveal to the management of both organizations the cause of lack
of engagement and motivation attitude display by their employees.
Furthermore, the
research work will help the employees of the organizations to reconsider their
input and how dutiful they are in discharging their assigned duty in the
organization. The general public will also benefit greatly because when these organization
became efficient and effective, it will encourage employment creation and utilization
of available natural resource which will boost the economy of the state and the
country in general and improve the standard of living among citizens.
Theoretically and
empirically, the study will add to the existing literature on employee
engagement in relation to organizational performance and related concepts. The
study will provide an additional framework in the identification and solutions
to the challenges glass industry faced in Nigeria with special reference to
Abia State. However, the study will serve as a reference point for both present
and future researchers who intend to carry on similar study.
1.7
SCOPE OF THE STUDY
This research work
focused on the effect of employee engagement on organizational performance of
International Glass Industry and Glass Force Plc in Aba, Abia State, Nigeria.
Thus, the research was conducted in International Glass Industry and Glass
Force Plc in Aba, the research involved all the employees in both organization
with specific interest on how employee’ engagement affects the organizational
performance.
Geographically, the Glass industries under
study are in Abia State. Abia
State is in the South-east geo-graphical zone of Nigeria. On 27th August, 1991, the Federal
Military Government under General lbrahim Babangida carved out Abia State from
Imo State, bringing to thirty the number of states in Nigeria.
1.8
LIMITATIONS OF THE STUDY
Completing the study was
not without notable challenges. The research encountered some difficulties and
risk in traveling to and from International Glass Industry and Glass Force to
sample and retrieve the questionnaires from the employees that form the
respondents of the study. The reluctant attitude of the employees to complete
the questionnaire on time was also worrisome, but the researcher was able to
persuade to respond to the questionnaire. Owing to the present economic
situation of the country, finance was also a major problem
1.9
DEFINITION OF TERMS
The following are the
operational definition as coined by the researcher:
Employee engagement: Employee engagement is a
positive, fulfilling, work-related state of mind characterized by vigor,
dedication, and absorption to assigned duty by the employee.
Organizational performance: Organization performance is a process or means
by which the organization management executes their functions and crucial
element toward improving their organization prospect thus enhancing
profitability
International glass industry and glass force: International Glass Industry and Glass Force
are manufacturing organizations in the production of glass, bottles and other
related products.
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