Impacts of Employee Engagement on Performance: A Case Study of Sierra Mineral Holdings 1 Limited

This research aims to investigate the impact of employee engagement on organizational performance by referring to the case study of Sierra Mineral Holdings 1 Limited. It will analyze the factors affecting employee engagement and assess the relationship between employee engagement and performance. Suitable recommendations for improving employee engagement will also be provided.

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Impacts of Employee Engagement on Performance: A Case Study of Sierra Mineral Holdings
1 Limited
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Chapter 1: Introduction..............................................................................................................3
1.0 Overview.....................................................................................................................3
1.1 Problem statement............................................................................................................3
1.2 Research aim....................................................................................................................4
1.3 Research objectives..........................................................................................................4
1.4 Research questions...........................................................................................................4
1.5 Research hypotheses........................................................................................................4
1.6 Research rationale............................................................................................................5
1.7 Structure of the dissertation.............................................................................................5
1.8 Summary..........................................................................................................................6
Chapter 2: Literature review......................................................................................................7
2.0 Overview.....................................................................................................................7
2.1 Conceptual framework.....................................................................................................7
2.2 Concept of employee engagement...................................................................................7
2.3 Factors affecting employee engagement..........................................................................8
2.4 Relationship between employee engagement and job satisfaction................................11
2.5 Challenges in ensuring active employee engagement....................................................11
2.6 Relationship between employee engagement and organizational performance............12
2.7 Concept of organizational performance.........................................................................12
2.8 Factors affecting organizational performance................................................................13

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2.9 Elements of performance management system..............................................................13
2.10 Impact of employee engagement on organizational performance...............................14
2.11 Summary......................................................................................................................14
Chapter 3: Research methodology...........................................................................................16
3.0 Overview........................................................................................................................16
3.1 Research philosophy......................................................................................................16
3.2 Research approach.........................................................................................................16
3.3 Research design..............................................................................................................17
3.4 Research strategy...........................................................................................................17
3.5 Sampling technique and sample size..............................................................................17
3.6 Data collection process..................................................................................................18
3.7 Data analysis technique..................................................................................................18
3.8 Ethical considerations....................................................................................................19
3.9 Accessibility issues........................................................................................................19
3.10 Summary......................................................................................................................19
References................................................................................................................................20

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Chapter 1: Introduction
1.0 Overview
Employees are the key internal resources for the business organizations, as they the ones
representing the company in front of the target audiences. It is the hard work and efficiency
of the employees that helps the business organizations walk the path of success by ensuring
effective and efficient performance. Therefore, it is important for the business organizations
regardless of the business sector to ensure active employee engagement. According to Anitha
(2014), engaged employees shows better efficacy towards their job roles and responsibilities.
Additionally, the employees take extra initiatives and go an extra mile for ensuring that
the organizational aim and objectives are fulfilled. As a result, the work are delivered on time
and with quality thereby, signifying effective organizational performance. The employees
have each other’s back sand support while working together if they are engaged towards their
job roles and responsibilities. Moreover, engaged employees is an asset for the business
organizations that helps in sustaining the competitive market by gaining competitive
advantage (Breevaart et al. 2014).
1.1 Problem statement
In Sierra Mineral Holdings 1 Limited, engaging the employees adequately has been
an issue. The company has faced issues in engaging the employees due to which the quality
and the delivery of work is questioned. The company is failing to meet the commitment made
to the different stakeholders, as they are failing to meet the standards and expectations.
Employee engagement for Sierra Mineral Holdings 1 Limited is a serious issue because the
competitive advantage of the company is also questioned. The employees are are not taking
extra initiatives and effort with the organization that is questioning the performance of the
organization (Saks and Gruman 2014).

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1.2 Research aim
The aim of the research is to investigate the impact of employee engagement on
organizational performance by referring to the case study of Sierra Mineral Holdings 1
Limited.
1.3 Research objectives
The objectives of the research are:
 To understand the concept of employee engagement and organizational performance
 To critically analyse the factors affecting employee engagement in Sierra Mineral
Holdings 1 Limited
 To assess the relationship between employee engagement and performance of Sierra
Mineral Holdings 1 Limited
 To provide suitable recommendations for improving employee engagement in Sierra
Mineral Holdings 1 Limited
1.4 Research questions
The questions of the research are:
 What do you mean by employee engagement and performance?
 What are the factors affecting employee engagement in Sierra Mineral Holdings 1
Limited?
 What is the relationship between employee engagement and performance of Sierra
Mineral Holdings 1 Limited?
 What are the suitable recommendations for improving employee engagement in Sierra
Mineral Holdings 1 Limited?
1.5 Research hypotheses
The research hypotheses are:

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H0: Employee engagement does not have an impact on performance of Sierra Mineral
Holdings 1 Limited
H1: Employee engagement does have an impact on performance of Sierra Mineral Holdings 1
Limited
1.6 Research rationale
Undertaking the research will be significant because this will help in investigating the
impact of employee engagement on performance for Sierra Mineral Holdings 1 Limited. This
research will help in understanding and investigating the impact by critically analysing the
factors that have an impact on employee engagement thereby, affecting the performance of
the organizations. In addition to, undertaking the research will also help in comparing and
contrasting the performance of the organization in the presence or absence of suitable
employee engagement (Cohen 2017).
The research is also significant because addressing the factors affecting employee
engagement will help in determining the factors that Sierra Mineral Holdings 1 Limited is
failing to ensure for engaging their employees successfully. Identifying the factors will help
in making suitable recommendations for improving employee engagement in Sierra Mineral
Holdings 1 Limited thereby, improving the performance of the company suitably (Mishra,
Boynton and Mishra 2014).
1.7 Structure of the dissertation
The entire structure of the dissertation will be divided into six distinctive chapters.
The different chapters are introduction, literature review, research methodology, data
analysis, conclusion and recommendations. Each chapters have significant characteristics that
needs to be followed in order to research successfully.

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1.8 Summary
Therefore, in this chapter, it can be summarized the chapter has been successful in
providing an overview of the research topic based on which research aim and objectives
along with hypotheses has been developed that will be investigated throughout the research.

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Employee engagement
Job satisfaction
Employee recognition
Relationship with co-workers
Organizational culture
Motivation
Organizational performance
Chapter 2: Literature review
2.0 Overview
This chapter is conducted with the purpose of reviewing past researches of different
authors those talk about employee engagement and organizational performance. The views
and opinions of different authors from the past literatures are considered followed by critical
evaluation that helps in developing a study with better in-sight about employee engagement
and organizational performance.
2.1 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by the Author)
2.2 Concept of employee engagement
Various factors affecting employee engagement are job satisfaction, employee
recognition, relationship with supervisors and the culture of the organization

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Employee engagement is one of the most widely studied aspects for the researchers.
As mentioned by Graban (2016), the concept of employee engagement highlights the
appropriate approach that helps in establishing right conditions for all the members of an
organization to give their best each day by indicating fulfilment of organizational goals and
values. However, as argued by Albdour and Altarawneh (2014), employee engagement is
defined as the fundamental concept of understanding and describing the passion of the
employees towards their job roles and responsibilities as well as determining the commitment
of the employees towards their organization. Employee engagement is different from that of
employee satisfaction because employee engagement indicates the passion of the employees
and not the happiness of the employees.
2.3 Factors affecting employee engagement
Various factors affect the level of employee engagement. The different
employee engagement factors are job satisfaction, employee recognition, relationship with
supervisors and the culture of the organization. As mentioned by Mathieu et al. (2014),
employee job satisfaction affects employee engagement positively because the employees are
satisfied and content at work. The employees are highly passionate about their job roles and
responsibilities that highlights increased efficacy, dedication and commitment. However, as
argued by Markovits, Boer and Van Dick (2014), employee job satisfaction is temporary, as
the factors of satisfaction keeps on changing. As the employees are the key stakeholders of
the business organizations, satisfying them is crucial for engaging the employees
successfully. As the employees are satisfied with the job roles and responsibilities and the
working environment, they show better engagement. This increased employee engagement
influences them to take initiatives and go extra miles for completing roles and responsibilities
(Mone and London 2018). However, on the contrary, the business organizations need to keep
on communicating with the employees so that the company is aware of the needs and

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demands and fulfil them accordingly thereby, ensuring job satisfaction and effective
employee engagement. Therefore, Sierra Mineral Holdings 1 Limited should emphasize on
ensuring employee job satisfaction so that the employee engagement is successful.
On the other hand, the relationship with the co-workers also affects employee
engagement because the employees spend majority of the time together. As a result, positive
relationship among the employees is necessary because this facilitates support, co-operation
and co-ordination among each other. However, on the contrary, maintaining positive
relationship with the co-workers depends on the individual characteristics. Therefore, Sierra
Mineral Holdings 1 Limited should emphasize on ensuring employee engagement
successfully.
Motivation for the employees in business organizations is of utmost significance
because the employees are the ones that determine the success of the company. According to
Shahzadi et al. (2014), it is necessary for the business organizations to ensure motivation of
the employees because this provides an opportunity for the employees to show greater
engagement towards their job roles and responsibilities. However, as argued by Njoroge and
Yazdanifard (2014), employee motivation is not constant and keeps on changing with time.
Therefore, the business organizations need to identify the source of motivation for the
existing employees at regular interval so that demotivation does not set in. Intrinsic and
extrinsic motivations are the two types of motivation that business organizations can use for
ensuring better engagement from the employees. The business organizations need to use both
extrinsic and intrinsic motivational techniques for engaging the employees effectively.
Intrinsic motivation is defined as the behaviour that is driven by internal rewards by
engaging in behaviours that arises within the individuals because it ensures natural
satisfaction. The intrinsic motivation is referred to as the internal motivational stimuli for the

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employee that comes from inside. The different types of intrinsic motivation are acceptance,
power, independence and honour. According to Cerasoli, Nicklin and Ford (2014), the
employees spend significant amount of time at their workplace and eventually it becomes
their home thereby, developing a sense of belongingness at workplace. Therefore, being
accepted for who they are and showing acceptance to their ideas and views within the
organization develops the feeling of belongingness thereby, ensuring effective intrinsic
motivation. However, on the contrary, being accepted is a two way processes where the
employees also need to be open, flexible and accept the workplace culture and the fellow
colleagues (Bellemare et al. 2016).
On the other hand, intrinsic motivation is mainly individual specific and comes from
within the employees. The employees also feel motivated when their decisions and
considered and they get attention from the organization. This makes the employees feel
significant and valued for the business organization and pushes them to contribute more
towards their job roles and responsibilities. The independence provided to the employees
motivates them and influences them to show higher level of engagement because the
employees have the provision of working the way they want (Hanus and Fox 2015).
Apart from intrinsic, extrinsic motivation is another method of ensuring effective
engagement from the employees. The different types of extrinsic motivation are benefiting
packages, recognition and rewards, career growth opportunities and performance appraisals.
The different types of extrinsic motivation help the business organizations engage the
employees with their job roles and responsibilities. The employees show greater engagement
with their work when they are provided various benefit packages. The business organizations
can ensure effective motivation of the employees by giving those health insurances,
conveyance packages and profit sharing. With profit sharing, as the employees are given
some portion of the organizational profit, they feel highly engaged. As the employees receive

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certain percentage of profit, they feel motivated and shows higher level of engagement
towards their job roles and responsibilities thereby, improving the organizational
performance (Gerhart and Fang 2015).
2.4 Relationship between employee engagement and job satisfaction
It is necessary for the business organizations for ensure active employee engagement
because this offers several benefits for the business organizations. As mentioned by Mone
and London (2018), highly engaged employees indicate higher productivity that highlights
better and improved organizational performance. Highly engaged employees work faster,
stronger and harder because they are passionate about the work they are doing thereby,
signifying higher level of satisfaction towards their job. At times, active employee
engagement influences the employees to take extra initiatives and ensure greater involvement
that highlights improved organizational performance. However, as argued by Bedarkar and
Pandita (2014), apart from productivity, active employee engagement ensures increased
profitability. As the employees feel good and highly satisfied at work, they work harder that
helps in producing quality work on time. As a result, the associated stakeholders are happy
that forces them to come back as well as refer the company to others. Therefore, Sierra
Mineral Holdings 1 Limited will have to ensure active employee engagement because this
will offer several advantages to the company.
2.5 Challenges in ensuring active employee engagement
In spite of the existing benefits, engaging the employees actively is often challenging
for the employees. As mentioned by Shuck and Reio Jr (2014), lack of clear understanding
among the employees or between the employees and the supervisors results in challenges for
engaging the employees successfully. As the employees lack peace of mind for the
employees at work due to disturbances with the fellow colleagues, they are unable to
concentrate at works that result in mistakes and quality is compromised as well. The progress

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of the work is also hampered due to which aims and objectives are not met on time. However,
as argued by Carter and Baghurst (2014), the management practices is also often a severe
challenge that affects employee engagement an issue. Bureaucratic work rules set by the
management of the business organizations often becomes an issue for the employees in terms
of managing personal and professional life that affects employee engagement negatively.
Therefore, it is necessary for Sierra Mineral Holdings 1 Limited to identify the main
employee engagement issues so that it can be mitigated suitably.
2.6 Relationship between employee engagement and organizational performance
After reviewing the past literatures in the above-sections, it can be inferred that
employee engagement is crucial ensuring effective and positive organizational performance.
As mentioned by Bedarkar and Pandita (2014), successfully engaged employees are active
and highly productive. Such employees take extra initiatives to complete their job roles and
responsibilities that provide an opportunity to complete desired work within time and wth
quality. As a result, he overall performance of the organization get is improved and the
organization is able to achieve greater heights. However, as argued by Petrenko et al. (2016),
apart from being highly productive and active, highly engaged employee shows greater level
of co-operation and support within the working environment. As a result, each of the
employees is benefitted from one another that eventually gives rise to positive and healthy
working environment. The employees are free to learn that helps them improve their existing
skills as well as learn new set of skills thereby, up lifting the overall performance of the
organization. As a result, the organization is able to sustain the competitive world and gain
competitive advantage suitably.
2.7 Concept of organizational performance
The overall performance of the business organizations is said as organizational
performance. As mentioned by Chen et al. (2014), the concept of organizational performance

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highlights the results or outputs of the business organizations that is measured against the
intended outputs or goals. However, as argued by Petrenko et al. (2016), organizational
performance is defined as the attributes that involves analysing the performance of the
business organizations against the goals and objectives those are set. Therefore, it can be said
that the real results or the outputs of Sierra Mineral Holdings 1 Limited against the intended
outputs is said to be the organizational performance of the selected company.
2.8 Factors affecting organizational performance
The different factors affecting the performance of the organizations are employee
satisfaction, employee engagement, employee motivation and organizational culture. As
employees are the key internal stakeholders of the business organizations, it is necessary for
the business organizations to keep their employees satisfied. As mentioned by Sabharwal
(2014), it is necessary to engage the employees because the hard work and effort of the
employees drives the business organizations towards success. Active employee engagement
indicates passion and dedication towards their job roles and responsibilities that help the
business organization achieve greater heights. However, as argued by Gomez-Mejia, Berrone
and Franco-Santos (2014), active employee engagement is possible when the employees are
highly satisfied and motivated with their job roles and responsibilities and the current
working environment. However, business organizations should keep on working on the
employees so that the employees are engaged positively.
2.9 Elements of performance management system
The elements of performance management system are planning and expectation
setting, monitoring, development and improvement, periodic rating, rewards and
compensation. All the aforementioned elements of performance system are necessary in
ensuring active engagement of the employees. For instance, the employees are able to relate
with the goals and objectives once it is clear to them. Therefore, it is necessary to set the

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goals first with required clarity and attached with a time frame so that it can be completed
within time. As the employees have a clear idea of what needs to be done and within what
time, they feel highly engaged with the desired job roles and responsibilities thereby, up
lifting the overall performance suitably. Therefore, it can be said that employee engagement
is related to performance management system largely (Chen et al. 2014).
2.10 Impact of employee engagement on organizational performance
The impact of employee engagement on organizational performance can be both
positive and negative. One of the positives of employee engagement is high productivity and
profit maximization. As mentioned by Wu, Straub and Liang (2015), highly engaged
employees indicate higher productivity that highlights better and improved organizational
performance. Highly engaged employees work faster, stronger and harder because they are
passionate about the work they are doing. Additionally, as the employees feel good at work,
they work harder that helps in producing quality work on time. As a result, the associated
stakeholders are happy that forces them to come back as well as refer the company to others.
However, as argued by Tseng and Lee (2014), failure in engaging the employees actively is
due to constraint management policies. The employees are unable to maintain a balance
between their personal and professional life. As a result, the ability to concentrate on work
and fulfil their work is hampered.
2.11 Summary
Therefore, in this chapter, it can be summarized that employee engagement and
organizational performance are related. The theoretical information provided in the literature
review section also supports the fact that employee engagement has a positive impact on the
organizational performance. The literature review has also been successful in shedding light
on the benefits of ensuring active employee engagement for Sierra Mineral Holdings 1

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Limited as well as the potential challenges of engaging the employees actively and
successfully.

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Chapter 3: Research methodology
3.0 Overview
The research methodology chapter will be developed with investigating the impact of
employee engagement on the performance of Sierra Mineral Holdings 1 Limited. In this
chapter, each of the existing methodological tools are mentioned, defined and justified for
selecting the specific methodological tools for undertaking the research.
3.1 Research philosophy
Positivism philosophy will be used for this research, as this will provide an
opportunity to support and justify the findings with the help of statistical and scientific
evidence. Positivism philosophy will facilitate using logic and factual knowledge about
employee engagement that will help in making quantifiable observations about the impact on
the performance of Sierra Mineral Holdings 1 Limited. Supporting the made observations
about the relationship between employee engagement and organization performance with
scientific and statistical evidence will help in developing a valid and reliable study for the
future researchers (Kumar 2019).
3.2 Research approach
Deductive approach will be used, as this will allow referring the previously conducted
studies that highlights concepts of employee engagement and organizational performance.
Additionally, using deductive approach will provide an opportunity to consider the opinions
and views of different authors about employee engagement and its impact on organizational
performance and critically evaluating them. Comparing and contrasting the opinions and
views will help in developing a better in-sight about the impact of employee engagement on
organizational performance thereby, analysing the effectiveness by referring to Sierra

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Mineral Holdings 1 Limited. Additionally, deductive approach will be the most suitable
approach when positivism philosophy is used (Mackey and Gass 2015).
3.3 Research design
Descriptive design will be used because this will provide an opportunity to conduct
the research by implementing the characteristics of both exploratory and explanatory research
designs. Descriptive design will be the most suitable because this will help in identifying the
issues Sierra Mineral Holdings 1 Limited is facing in ensuring effective engagement for their
employees. Apart from identifying the employee engagement issues that Sierra Mineral
Holdings 1 Limited is facing, descriptive design will also help in finding the potential reasons
that causing the employee engagement issues. Therefore, identifying the issues and the
reasons of the issues by using descriptive design will help in providing suitable
recommendations for overcoming employee engagement issues that will help Sierra Mineral
Holdings 1 Limited to improve the organizational performance (Silverman 2016).
3.4 Research strategy
Survey research strategy will be used because this will help in collecting bird’s eye
view of the current scenario of Sierra Mineral Holdings 1 Limited. Using survey research
strategy will help in collecting data from a large population size of the employees for
determining the impact employee engagement on the organizational performance. Survey
research strategy will be preferred because this will save both time and effort for the
researcher. Survey research strategy will also be justified because it is highly cost efficient
and time efficient and indicates high representativeness. Additionally, survey research
strategy will help in obtaining good statistical significance about the impact of employee
engagement on the performance of Sierra Mineral Holdings 1 Limited (Taylor, Bogdan and
DeVault 2015).

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3.5 Sampling technique and sample size
Simple random probability sampling technique will be used, as this will provide an
opportunity for all the employees of Sierra Mineral Holdings 1 Limited to take part in the
survey equally. This sampling technique will provide equal and random chances for all the
employees of Sierra Mineral Holdings 1 Limited to share their opinions and views about the
issues that face while engaging them actively towards their job roles and responsibilities that
is affecting the performance of the company negatively. Out of the entire employee
population of Sierra Mineral Holdings 1 Limited, the researcher will select 70 employees of
Sierra Mineral Holdings 1 Limited randomly for analysing the data (Flick 2015).
3.6 Data collection process
Primary data collection process will be used because the researcher will collect data
from the employees of Sierra Mineral Holdings 1 Limited regarding employee engagement
and performance of the company for the first time. As a result, this will help in collecting
recent and updated views and opinions about engagement issues the employees are facing
within the organization that is having a negative impact on the performance of the
organization. Additionally, using primary data collection process ensures greater control
thereby, eradicating details those are not pertinent to the study (Alvesson and Skoldberg
2017).
3.7 Data analysis technique
Quantitative data analysis technique will be used because this help in analysing the
data with the help of mean and percentages and is represented with the bars, charts and
graphs. In the quantitative data analysis technique, both co-relation and regression analysis
will be used that will help in determining the relationship between employee engagement and
organizational performance followed by investigating the impact on one another by referring
to the case study of Sierra Mineral Holdings 1 Limited (Neuman and Robson 2014).

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3.8 Ethical considerations
Successful completion of the research will be highly dependent on the compliance of
the ethical considerations. One of the significant research ethics that needs to be followed is
data confidentiality. Ensuring successful data confidentiality is necessary that this will help in
keeping the identity and data shared by the participants confidential. As a result, conflicts due
to varied opinions and biasness can be reduced. Apart from data confidentiality, willing
participation of the respondents is necessary. Therefore, asking the respondents to sign to
consent form before collecting data is one of the ways of ensuring willing participation in the
research. Harming and destroying the surrounding environment including the animals, plants
and insects is also a significant research ethics that needs to be followed while undertaking
the research. Other significant research ethics that needs to be followed are strict prohibition
of data manipulation, collecting data from inauthentic resources and using the collected data
for commercial purposes (Ledford and Gast 2018).
3.9 Accessibility issues
The two potential issues that will arise while undertaking the research are time and
budget. Time will be an issue because of the limited period that is allocated for conducting
the research. The researcher will have to rush the investigation and conduct limited research
in order to complete the work within time. Additionally, budget will also be an issue. This is
because accessing some of the highly relevant journals and articles required time that will be
an issue for the researcher.
3.10 Summary
Therefore, in this chapter, it can be summarized that appropriate methodological tools
will be selected for investigating the impact of employee engagement on the organizational
performance of Sierra Mineral Holdings 1 Limited.

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