Influence of Employee Engagement on Organisational Productivity: A Study on IGA Supermarket in Australia

Topic: RESEARCH IN BUSINESS
Research in Business
Topic: Influence of employee engagement on organisational productivity: The study based on
IGA Supermarket in Australia
Student’s name:
Name of the university:
Author’s note:

1RESEARCH IN BUSINESS
Title:
Influence of employee engagement on organisational productivity: The study based on
IGA Supermarket in Australia
1. Problem statement
Engaged employees are productive as the productivity comes from the motivation and
personal factors. The efficient workforce brings the success to the organisation. As stated by
Katou & Budhwar (2015), the management of the organisation needs human capital in order to
provide customer satisfaction and to run smooth operation process. If the employees within an
organisation disorganised due to lack of motivation, team-bonding, the culture of the
organisation and interest; the productivity of the organisation will decrease automatically. In the
supermarket sector, the employee engagement is low in Australia; the main reason is lower
employee retention rate. According to Sutton, Kamvounias & Taylor (2015), lower engagement
of the employees creates lower absenteeism and higher focus towards motivation. In the
Australian retail sector, 25% of the employees are not engaged and disengaged employees can
drop 18% of the productivity; therefore, it can lead to 56% drop in quality (Abs.gov.au, 2018). In
supermarket sector, lack of employee engagement can cause to poor quality control, customer
relations, innovation absenteeism, poor teamwork and discouraging team building. In
supermarket sector, sales executives play important role in providing customer satisfaction and
negative employee engagement can discourage the employees and inflect the morale.
Independent Grocers of Australia (IGA) sells general products and groceries to the customers.
This supermarket organisation has its stores in South Australia, Tasmania and Western Australia.
The employees are not engaged in the organisation as last year employee turnover rate has been

2RESEARCH IN BUSINESS
increased by 5% (Iga.com.au, 2018). The employees are leaving the organisation; therefore, the
organisational productivity is also decreased.
Aim:
The aim of the research is to explore the influence of employee engagement on
organisational productivity. The focus of the study is IGA Australia, an independent
supermarket.
Objectives:
The objectives of the study are:
 To find out the issues of employee engagement in supermarket Australia
 To highlight the strategies of organisational productivity in IGA Australia
 To explore the influence of employee engagement on organisational productivity
 To provide some possible recommendations to improve the employee engagement in
IGA Australia to have better organisational productivity
2. Brief methodology
Literature review:
As stated by Hatherley, Jennings & Cross (2016), a literature review is the main
secondary data collected from scholarly articles of the renowned authors. In the literature review
section, the scholarly articles have been reviewed based on the theoretical framework of
employee engagement and organisational productivity. In the literature review section, the
theories and models of the employee engagement in the Australian supermarket sector will be
reviewed based on the information from articles, government reports and websites. The current