Employee Engagement and Organizational Performance: A Literature Review

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Literature Review
7HURM012W.2 HUMAN RESOUCE MANAGEMENT
LITERATURE REVIEW ASSIGNMENT

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Literature Review
Employee Engagement and Organizational
Performance

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Literature Review
Introduction
Employee engagement has been a hot topic of research among industrial
and management practitioners, human resource researchers, and positive
psychologists. No matter what is the type of business, employees are the
most crucial assets for any organization. By creating a development-
enabling and friendly working environment that leads to employees'
commitment, employers can also enhance their chances of retaining and
hiring worthy employees. Employee engagement is a buzzword that most
employers and managers think they completely understand, but they face
entirely different circumstances when it comes to practicing. They face
challenges while implementing strategies to help employees engage in
competitive activities. Regardless of their nature, the progress and
survival of any industry undoubtedly depend on their human capital and
the contributions of their workers. The challenges of a committed and
engaged workforce have been reported by almost every kind of
organization. Every organization considers its employees as the most
crucial assets (Motyka, 2018). Over the last few decades, concepts of
organizational commitments and job engagement as methods to enhance
an organization's productivity and performance have been discussed
extensively in the literature. Furthermore, organizations are consistently
looking for several strategies to improve their financial arrangements
while emphasizing various ways of enhancing employees' quality of care.
To achieve positive business outcomes and competitive advantages,
organizations must know the organizational commitment and job
engagement of their personnel. It is why human resource managers

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Literature Review
ranking the establishment of job engaged workforce as a priority for their
companies does not seem surprising. It has also been suggested that job
engagement is crucial for fruitful business outcomes. Because of the
increasing competition of business sectors, committed employees have
become a matter of survival for every firm.
The article's significant objective is to sum up the previous research
based on the categorization and ordering, identifying the gaps between
the recent up to date information, and proposing future research agendas.
The paper presents the findings and outcomes in an orderly and synthetic
manner providing theoretical and practical implications. The study's
consequences indicate a statistically prominent relationship between the
employee engagement and several categories and subcategories of
organizational performance.
From the viewpoint of Satornino, Doreian and Allen, (2017), it is analysed
that employee engagement is very crucial to understand the meaning and
importance of employee engagements and the impact they could have on
the overall performance of the organizations. The purpose of this article is
to provide an assessment that aims to introduce the results regarding the
research of an organizational performance based on the employee efforts
and engagement. Employee engagement and satisfaction is related to the
indication of how happy an employee is within workplace. It includes
addressing of motivation, involvement and commitment for a company’s
work. There is need for focusing upon improving the satisfaction level of
employees. This can be concluded that employee satisfaction has to be
controlled in particular manner so that motivation can be increased. There

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Literature Review
is need for managing different conditions involved within the
accountability of employee satisfaction and increased performance. There
is need for improving the standards of employees and making them
effective so that they can work within company for long period. The
expectation of employees from a company are higher and it is ensured
that they must be having effective employee engagement strategy so that
highly engaged workforce can be implemented.
It is evaluated from the views of Roumpi, Magrizos and Nicolopoulou, (2020),
employee engagement surveys are important for development of
measuring performance of the people working in the company.
Engagement is a term which focuses upon the providing of useful
resources that will help a company to work in efficient manner.
Definitions
Employee Engagement
There are different definitions of employee engagement by various
scholars and organizations. It must be noticed that in 1990, Kahn was the
first scholar to propose the concept of employee engagement. He defined
employee engagement as harnessing of members of organizations
according to their work responsibilities that mainly include self-expression
and self-employment of people cognitively, physically, and emotionally in
their work lives. Various research has proposed multiple perspectives of
employee engagement since Kahn proposed this concept. These
definitions reflect different understandings of employee commitment and
engagement, but each of them defines employee engagement as crucial

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Literature Review
for businesses' success (Kocherlakota, 2015). . Human resource
management is the biggest problem on which every organization should
put effort consistently. It seemed that employees are committed to their
jobs and are dedicated enough to perform well but are not engaged
enough by the management team. It is all up to the management team
and the employer to get the employees' physical, mental, and emotional
efforts out of them all at the same time (Heritier, and et.al., 2017). It is crucial
to get the best out of the employees by properly managing their time,
work, and efforts.
Employee engagement is related to workforce feeling passionate about
their working, occupation and are committed for the company so to put
discretionary efforts into jobs. An engaged employee is fully observed and
enthusiastic about jobs and takes positive actions towards reputation and
interest of entity. Similarly, organisational performance is actual results of
a business concern that is measured against its defined outputs.
Employee engagement is beyond games, events and practices in the
company and contributes widely in driving business performances as
engaged employee puts emphasis on entire organisation and properly
carry out operations by understanding their purpose, where as well as
how they fit in attaining great performances. It is analysed that there is
positive relationship among employee engagement and organisational
performance as engagement of employee helps the entity to outperform
in competition and have high recovery factor after any kind of setbacks.
Employee engagement excel in performance of company in dynamic
industry as engaged person attain excel in satisfying consumer and