Influence of Employee Engagement on Organisational Productivity: The Study Based On IGA Supermarket in Australia

This study examines the impacts of employee engagement on organizational performance, with a particular focus on Independent Grocers of Australia (IGA). The study will focus on the Australian supermarket sector because it is the leading in low employee engagement, which has been attributed to low employee retention rate.

Running head: Branding and Sales 1
Influence of Employee Engagement on Organisational Productivity: The Study Based On
IGA Supermarket in Australia
by
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Table of Contents
SECTION I.................................................................................................................................3
INTRODUCTION..................................................................................................................3
PROBLEM STATEMENT....................................................................................................4
RESEARCH AIM AND OBJECTIVES................................................................................5
PROJECT JUSTIFICATION.................................................................................................5
EXPECTED RESEARCH OUTCOME.................................................................................5
SECTION II...............................................................................................................................7
CONCEPTUAL FRAMEWORK AND RESEARCH HYPOTHESIS..................................7
METHODOLOGY...............................................................................................................12
SECTION III............................................................................................................................15
ORGANIZATION OF THE STUDY..................................................................................15
GANTT CHART..................................................................................................................15
PROJECT BUDGET AND BUDGET JUSTIFICATION...................................................16
REFERENCES.........................................................................................................................18
APPENDICES..........................................................................................................................22

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SECTION I
INTRODUCTION
The present period of globalization which is characteristic of change demands the attention of
the management of human resources for the success of the organization. The stiff competitive
market has also made organizations appreciate the need for fully linking their workforce with
their job and the enterprise. There has been a particular focus of scholars and researchers on
operational and process improvements to improve organizational performance as opposed to
the traditional methods (Demerouti, Mostert, & Bakker, 2010; Yu, Ramanathan, & Nath,
2014). This approach emphasizes on dealing with employee engagement to make sure that
those in charge of managing the systems in addition to the skills have the right attitude to
work in a suitable workplace environment. There is a clear connection between employee
engagement and organizational performance. Bakker & Schaufeli (2008) found out that
engaged workforce is more proactive, cooperative, accountable, self-starters and aim at
quality performance. Therefore, an additional research in this area will be important in
contributing to the body of knowledge.
The objective of this proposal is to carry out a complete research on the impacts of employee
engagement on organizational performance, with a particular focus on Independent Grocers
of Australia (IGA). The study will focus on the Australian supermarket sector because it is
the leading in low employee engagement, which has been attributed to low employee
retention rate. The retail sector of Australia shows that 25% of the workforce is not engaged
and 18% drop of organizational productivity is attributed to disengaged staff, thus causing an
overall drop in 56% quality (IGA, 2018). Independent Grocers of Australia (IGA) deals in
general products and groceries. The enterprise has outlet stores in South Australia, Tasmania,
and Western Australia. It had a 5% increase in employee turnover rate in 2017 and hence low
production.

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The study is organized into three sections. The first section forms the introduction, problem
statement, study objectives, project justification, and expected outcomes. Section two consists
of the literature review and research design. Lastly, the third section involves the organization
of the study, Gantt chart, and the proposed budget.
PROBLEM STATEMENT
Employee engagement is a new construct in HR literature. Employees that are engaged with
their work and employer are better performers since they are motivated in additional to
individual aspects. They become more focused and encouraged that those disengaged. As a
result, they are more effective at work and key players in the success of the company. Macey
& Schneider (2008) describes engagement as the way in which the employee feels regarding
the job and the manner in which he/she is treated in the workplace. Employee engagement is
correctly perceived as the primary determinant of productivity. A workforce that is fully
engaged makes the employees more enthusiastic and zealous towards their work,
consequently, workplace coherence is developed as a culture (Kompaso & Sridevi, 2010). A
conducive workplace environment is thus made by the employees themselves which foster
better ideas and innovations thus improving organizational productivity.
Several businesses have experienced reduced production due to high turnover rates and
consequently, close down. In 2017 the Australian retail sector experienced a 56% drop in
quality (IGA, 2018). The quality drop in the supermarket sector has been attributed to the
absence of employee engagement. In such a case it is important to examine the causes of the
drop in quality and this study will attempt to fill the gap with empirical evidence of the
causes and effects of the drop in quality in the IGA supermarkets in relation to employee
engagement.

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RESEARCH AIM AND OBJECTIVES
The general aim of this study is to examine the influence of employee engagement on
organizational productivity with IGA supermarkets as the case study. The specific research
objectives include:
1. To find out the Factors influencing employee engagement at the IGA Australia
workplace
2. To ascertain the Effects of employee engagement on organizational performance of
IGA Australia
3. To provide Recommendations for employee engagement for improved organizational
productivity in IGA Australia
PROJECT JUSTIFICATION
This proposal is to be carried out with the help of critical review of literature and response
from the employees of IGA supermarket in South Australia. This is due to the reduction in
quality across the supermarket sector in addition to high turnover rates. In such a scenario,
the proposal is to generate the following advantages:
The study will provide an insight to the interested parties on how employee engagement
influences organizational performance.
The management of IGA supermarkets can use the findings of this study to develop their
strategies for improvement. This is because this research will give them the right focus on
how to address organizational productivity.
Policymakers, scholars, and shareholders will find this proposal outcomes important while
making key management decisions
EXPECTED RESEARCH OUTCOME
The findings of this research will provide an analytical framework for evaluating the
influence of employee engagement on organizational performance. Even if business

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operations and workplace culture may vary between organizations, this study will be
beneficial in providing an insight and broad perspective regarding organizational
performance and help understand the factors that primarily determine employee engagement.
The study objectives of this proposal will be answered based on the collected data, outcomes
and analysis that will be undertaken. The study findings will be significant academic findings
for the identified problem. Any upcoming business enterprises will also find the outcomes
important so that they can focus on major issues affecting organizational performance.

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SECTION II
CONCEPTUAL FRAMEWORK AND RESEARCH HYPOTHESIS
Employee engagement is the extent to which a person makes full use of tier entire being
physically, emotionally and intellectually to undertake a given task. Different scholars have
given varying definitions of employee engagement based on their area of focus. Wollard &
Shuck (2011) stated that three psychological aspects are linked to engagement, namely job
value, psychological safety, and availability. Attridge (2009) perceived employee
engagement as the involvement of an individual and satisfaction with their task. In order to
factor in the needs of the workers, most firms have disregarded centralized control
management in expectation of fostering flexibility in addition to the future improvement of
both the employees and corporate performance.
Factors influencing employee engagement
Several measures of employee engagement or factors affecting employee engagement have
been devised, but the interest of the researcher is on four main factors. These include
involvement and participation, internal communication, recognition and rewards, and work-
life balances.
Involvement and Participation
Most enterprise management is faced with the difficulty of managing and getting their
workforce to be actively engaged in decision making. The present competitive and dynamic
market has forced organizations to focus on recruiting employees who are creative and
innovative. On the other hand, the employees of the 21st century have varying needs and
demand organizations that give them attention and adapt their thoughts. Rothmann &
Rothmann (2010) observes that the management should incorporate employees in decision
making to build their confidence in the organization. Shuck & Wollard (2010) assert that

Employee Engagement 8
companies should establish an environment in which the staff can freely give feedback and
are treated justly.
Internal Communication
An organization’s internal communication is important in the communication of strategies
and objectives to the management. Karanges et al. (2015) found out that routine briefings to
the staff regarding workplace issues and progress were key to creating employee confidence
and zeal for work. Ruck & Welch (2012) found out that effective internal communication
increased the level of employee engagement and the feeling that they are valued and are
appreciated at work. However, this was largely dependent on the leadership style. Welch
(2012) elucidates that a developed internal communication system helps employees to be
focused and avoid destructions and small complaints.
Recognition and Rewards
Recognition is vital to any approach to employee engagement. Employee recognition forms
such as monetary or word of appreciation are important in achieving high levels of employee
engagement. Bhattacharya & Mukherjee (2009) opine that employee recognition in terms of
performance or incentives creates satisfaction at the workplace and the employee is ready and
willing to exert more effort and focus on attaining the set goals. Studies have also shown that
the absence of recognition or rewards results into burnout and consequently low engagement
and production (Crawford, LePine, & Rich, 2010; Van den Broeck et al., 2008).
Work-life Balance
Researchers have shown a significant increase in workplace stress (Delecta, 2011; Goodman,
2012). This can be attributed to work overload and impossible deadlines. Gilboa et al. (2008)
argue that workplace stresses like work overload creates tension and leads to poor health and

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a lot of disagreements with other staff thus causing employees to look for a better work
environment. This makes it impossible for employees to balance the family needs and work
demands, thus limiting employee and by extension organizational productivity.
Employee engagement on organizational performance
Employee engagement is a fundamental aspect of ensuring both employee and organizational
success. Employee engagement or disengagement foretells the outcomes of the workforce
and various aspects of organizational productivity as shown in figure 2.1 of the framework of
the relationship between employee engagement and organizational performance.
Increased profits and performance
Employee engagement leads to increased profits and performance. Sundaray (2011) found
out that employee engagement was the result of increased profits which gave the business the
potential to increase employee incentives thus provoking positive feelings towards workplace
and consequently increased attachment to the company. Shuck, Reio Jr, & Rocco (2011)
identified employee engagement as the antecedent for organizational performance. The study
found a direct relationship between employee engagement and both organizational and
individual performance. Employees felt that their needs and opinions were addressed by the
management due to the routine communication briefs. As a result, they had peace of mind
and were motivated to put more effort into their work. The authors assert that this was further
reflected in the overall performance of the organization.
Better quality
The study by Lowe (2012) shows that improved employee engagement led to increased
quality levels and customer satisfaction since engagement created the platform for sharing

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ideas which lead to innovation and creativity. Additionally, the inclusion of employee
representatives in the process of decision making led to suggestions on performance that were
implemented and as a result increased quality of workplace, customer relationships, and
organizational performance. Engaged employees feel that they have a common role in
achieving organizational goals and thus work together to attain one objective, and the
synergistic effects are demonstrated in the quality of products and services they deliver.
Customer Loyalty
Engaged employees are usually happy and their attitude is reflected in how they deal with
customers. The findings of Gonring (2008) show that engaged employees have a better
understanding of the products and services provided by the organization and thus are better
accustomed to the needs of the customers. This leads to effective customer management
which results in customer loyalty.
Employee retention
Kompaso & Sridevi (2010) notes that employee retention is antecedent to employee
engagement. Organizations only retain employees that they have already engaged and are
willing to sustain the engagement. The study by Gruman & Saks (2011) indicated that the
employees that had worked the longest in the organization attributed their stay to effective
employee engagement.
Employee Engagement
(measures)
Involvement and Participation
Internal Communication
Recognition and Rewards
Work-life Balance
Organizational Productivity
(outcomes)
Increased profits and
performance
Better quality
Customer Loyalty
Employee retention
Independent Variable Dependent Variable

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Figure 2.1 Framework of the relationship between employee engagement and organizational
performance
Hypothesis
With respect to the problem statement and study objective, the following hypotheses were
formulated to be tested in the actual study
Hypothesis 1:
H0: Null Hypothesis: Employee engagement does not influence increased profits and
performance in the organization
H1: Alternative Hypothesis: Employee engagement at the workplace does influence increased
profits and performance
Hypothesis 2:
H0: Null Hypothesis: Employee engagement does not influence better quality in the
organization
H1: Alternative Hypothesis: Employee engagement does influence better quality in the
organization.
Hypothesis 3:
H0: Null Hypothesis: Employee engagement does not influence customer loyalty in the
organization

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H1: Alternative Hypothesis: Employee engagement does influence customer loyalty in the
organization
Hypothesis 4:
H0: Null Hypothesis: Employee engagement does not influence employee retention in the
organization
H1: Alternative Hypothesis: Employee engagement does influence employee retention in the
organization.
METHODOLOGY
The following research design will be adopted in order to effectively examine the objectives
of this research proposal:
Literature review
Secondary data will be obtained through a critical review of the extent relevant literature. The
sources include Google scholar, published journal articles, peer-reviewed articles, CQU
online library and some other books with vital information.
Population
The target population for the survey includes all current employees of IGA supermarket in
South Australia, which is 150 employees. Since there exist various departments in the
supermarket, stratified probability sampling techniques will be used to ensure there is equal
representation from all the departments. The departments include senior management, middle
line managers, supervisors, and junior employees, and this was obtained from the HR
department of the company.
Sample

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The inclusion criteria for the subjects of study is that they must be current employees in the
supermarket. Random sampling method will be used to select samples for analysis to
minimize researcher biases (Creswell & Clark, 2017). Five employees from each department
will be randomly selected to make up the sample size. Thus, the sample size will be 20
employees of IGA supermarket in South Australia.
Data Collection
The study is to adopt the use of interviews and structured questionnaires to collect primary
data. All the questions will be closed-ended to as to improve the validity of the feedbacks
(Treiman, 2014). Interviews will be carried out to the senior management only because of
their expertise in workplace management and organizational performance. Questionnaires
will be used because they take less time and are easy to formulate and analyze after data
collection. The interview will also be used to gain a deeper understanding of the variables
under study (Gill et al., 2008). The questionnaires will be distributed by hand delivery
through the research and two assistants during the normal business days as directed by the
management of the supermarket. The data collection exercise is expected to take 14 days out
of the total 12 weeks allotted for the entire work.
Data Analysis
Both the secondary and primary data will be examined by the use of qualitative and
quantitative methods (mixed method approach) respectively. A mixed approach will enable
the researcher to arrive at the solution that is stated in the problem statement.
Qualitative Data:
Purposive sampling will be used to increase data transferability and yield an in-depth
information of the study variables (Etikan, Musa, & Alkassim, 2016). Informational

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materials were critically examined and the relationships between study variables ascertained.
Thematic analysis was used to analyze the information for easy interpretation and
understanding of the variables under study (Vaismoradi, Turunen & Bondas, 2013).
Quantitative Data:
Primary data will be collected using structured questionnaires with close-ended questions.
The opinions of the respondents will be quantified on a five-point Likert Scale ranging from
“strongly agree” to “strongly disagree” (Croasmun & Ostrom, 2011). Descriptive data
analysis approach will be used to analyze the numerical data. Descriptive statistics like
average, median and standard deviation are to be used to interpret the influence of employee
engagement on various aspects of employee productivity. The data is to be organized, coded
and analyzed using SPSS (version 20), and the outcomes presented in the form of tables and
graphs for easy interpretation.

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SECTION III
ORGANIZATION OF THE STUDY
The study report is divided into six chapters as shown below:
Chapter one will contain the research proposal as already indicated
Chapter two will comprise of the case study on the influence of employee engagement on
organizations productivity
Chapter three will consist of the conceptual framework and hypothesis
Chapter four will provide an in-depth outline of the research methodology used in collecting
secondary data by use of literature review, methods of collecting primary data. Also, the
chapter will address the target population, sampling technique, sample size and the methods
of data analysis.
Chapter five will consist of the study findings and analysis
Finally, Chapter six will consist of the summary of the significant results and the discussions
on their implications on organizations productivity.
GANTT CHART
The table below shows detailed time schedule for each research activity.
Activity Start Date End Date
Duration
(Days)
Research Problem Identification
03/04/201
8
10/04/201
8 7
Developing of research
objectives
12/04/201
8
17/04/201
8 5
Data Collection Approach
28/04/201
8
06/05/201
8 8

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Development of Questionnaire
10/05/201
8
17/05/201
8 7
Project Proposal organization
18/05/201
8
25/05/201
8 7
Sample size of survey
28/05/201
8
31/05/201
8 3
Data collection
03/06/201
8
15/06/201
8 12
Data analysis
16/06/201
8
21/06/201
8 5
Report write-up
23/06/201
8
27/06/201
8 4
Final report submission
27/06/201
8
30/06/201
8 3
Research Prolbem Identification
Developing of research objectives
Data Collection Approach
Development of Questionnaire
Project Proposal organization
Sample size of survey
Data collection
Data analysis
Report write-up
Final report submission
9/2/18 11/3/18 10/4/18 10/5/18 9/6/18 9/7/18
PROJECT BUDGET AND BUDGET JUSTIFICATION
The entire exercise is expected to take approximately three months. The approximate total
budget is $ 520. The following is the justification for the budget:

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The researcher is to collect secondary data by accessing online scholarly materials such as
published journal articles, peer-reviewed articles etc. online sites such as Google scholars
among others will be accessed with a total subscription fee of $45. Since the proposed sample
size is 20 employees, a total of 20 questionnaires will be printed in addition to introduction
letters from the university. These are expected to cost $100 dollars. Since the site for the case
study is in South Australia, transportation costs to be incurred are $30. These are inclusive of
both the researcher and assistant researchers. A stipend of $30 will be given to my assistant
researchers for assisting in the distribution of questionnaires to employees and responding to
any questions. Data collection will cost $30 which comprises of expenses such as meals for
the researchers among others. Data analysis will cost $50 because an expert in SPSS will
have to be hired to run the data and generate findings which shall be discussed by the client in
accordance with the research objectives. Telephone expenses of $60 are expected to be
incurred in communications with the management of IGA supermarket and the assistant
researchers in preparation for the actual study.
Budget items/ activities Cost ($)
Access Subscriptions to articles 45
Printing of questionnaires & Introduction letters 100
Transportation costs: 175
Two Asst researchers (to and fro) : $20
Researcher (to and from): $10 30
Stipend for two researchers 30
Data Collection 30
Data analysis 50
Telephone expenses 60
Total 520

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research and business literature. Journal of Workplace Behavioral Health, 24(4), 383-
398.
Bakker, A. B., & Schaufeli, W. B. (2008). Positive organizational behavior: Engaged
employees in flourishing organizations. Journal of organizational behavior, 29(2),
147-154.
Bhattacharya, S., & Mukherjee, P. (2009). Rewards as a key to employee engagement: A
comparative study on IT professionals. ASBM Journal of Management, 2(1), 160.
Crawford, E. R., LePine, J. A., & Rich, B. L. (2010). Linking job demands and resources to
employee engagement and burnout: a theoretical extension and meta-analytic
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Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods
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Employee Engagement 20
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4.
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stressors and job performance: examining main and moderating effects. Personnel
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Gonring, M. P. (2008). Customer loyalty and employee engagement: an alignment for
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Goodman, A. (2012). Work–life balance. In Physicians’ pathways to non-traditional careers
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Gruman, J. A., & Saks, A. M. (2011). Performance management and employee
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performance. International journal of business and management, 5(12), 89.

Employee Engagement 21
Shuck, B., & Wollard, K. (2010). Employee engagement and HRD: A seminal review of the
foundations. Human Resource Development Review, 9(1), 89-110.
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Employee Engagement 22
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APPENDICES
Appendix 1: Questionnaire
A SURVEY ON THE INFLUENCE OF EMPLOYEE ENGAGEMENT ON
ORGANIZATIONAL PRODUCTIVITY
SECTION 1: DEMOGRAPHIC INFORMATION
1. Please specify your gender: Male [ ] Female [ ] Other [ ]
2. How long have you worked for IGA?
Below 5 years [ ] 6-10 [ ] 11-15 [ ] 16-20 [ ] 20+ [ ]
3. Which category do you belong to?
Senior manager [ ] Line manager [ ] Supervisor [ ]
Junior employee [ ] Others [ ]
SECTION 2: MEASURES OF EMPLOYEE ENGAGEMENT
Please indicate the extent to which you agree to the following statements by placing a
tick on each box for each row (Strongly Disagree=1 Disagree =2 Neutral= 3
Agree =4 Strongly Agree =5)
Elements Strongly
agree (1)
Agree (2) Neutral
(3) Disagree
(4) Strongly
disagree
(5)
1. I feel involved and
participative in organizations
activities including decision
making2. We have routine briefing as
one way of internal
communication
3. I receive recognition and
reward for job well done
4. The work allocated is
manageable and deadlines are
achievable

Employee Engagement 24
SECTION 3: INFLUENCE OF EMPLOYEE ENGAGEMENT ON
ORGANIZATIONAL PRODUCTIVITY
Please indicate the extent to which the following factors determine you satisfaction
level towards JBS food products by placing a tick on each box for each row
(Strongly Disagree=1 Disagree =2 Neutral= 3 Agree =4 Strongly
Agree =5)
Elements Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
1. Employee engagement has
significantly contributed to
the Increased profits and
performance
2. Employee engagement has
significantly contributed to
Better quality
3. Employee engagement has
significantly contributed to
Customer Loyalty
4. Employee engagement has
significantly contributed to
Employee retention
THANK YOU FOR PARTICIPATING!