The Impact of Employee Engagement on Organizational Success: H&M

This dissertation investigates the impact of employee engagement on organizational success within the retail industry, using H&M as a case study. The research explores the significance of workforce engagement and its direct influence on employee performance, productivity, and overall organizational outcomes. The study begins with an introduction providing background information on the topic and the company, followed by a literature review synthesizing secondary data from sources like the internet, articles, books, and magazines. The methodology section outlines the research methods used, and the findings and analysis section presents the results. The project concludes with recommendations and conclusions based on the research findings, including an analysis of employee engagement concepts, its role in improving competitiveness, and its relationship to organizational success. The report includes a table of contents, introduction, literature review, methodology, findings, analysis, recommendations, conclusion, and references.

6001 Dissertation

ABSTRACT
The major reason behind conducting this investigation is to acknowledge the concept
about the employee engagement and its impact on the organisational su8cess within the retail
industry. It clearly provide the better understanding about the significant and importance of the
workforce engagement that has the direct impact on the performance and productivity of the
employees as well as overall organisational. As human resources and their working is refers to
the main driving force behind the success of any organisation. There are various aspects of the
employees that has to be taken into the consideration while evaluating the performance and
productivity of the company. Such their motivation level, satisfaction with the job and their
engagement within the organisation. For enhancing the performance and to get the effectively
high outcomes such factors has to be taken into the account. In the below research, first there is
an introduction in which complete information about the topic and the brief of the respected
company from the retail industry industry. In addition to this, in the second part summary about
the literature review is conducted that has been processed with the support of the secondary data
such as internet, articles books and magazines. That helps to know about the complete concept
about the employee engagement , its importance along with the relationship with the
organisational success. In the other part methodology and the methods has been discussed that
has provide the clarity about the methods and approaches that is being used in the investigation.
And then there data analysis and interpretation long with the recommendation and conclusion of
the overall research.

Table of Contents
INTRODUCTION...........................................................................................................................1
Research Aim..............................................................................................................................2
Research Objectives....................................................................................................................3
Literature review .............................................................................................................................3
Research methodology ....................................................................................................................7
Findings and analysis.....................................................................................................................10
Recommendation and conclusion..................................................................................................23
References......................................................................................................................................27

INTRODUCTION
Employee engagement refers to an approach which is used at the work place that results
in the right conditions for the all members of an organisation to give their best each day,
committed to their organisations goals, values and objectives along with, they are motivated to
contribute in the growth and success of the company while enhancing sense of their own well
being(Mone, London and Mone, 2018). This concept is based on the trust, integrity and two way
communication and commitment between an organisation and its employees, its is described as
the approach which increases the chances of the success of the company along with contributing
in the organisational and individual performance, productivity ans well being that provides
support in the longer sustainability of the company. Employee engagement is associated with
providing the clear understanding of how an business is fulfilling its purpose and objectives, how
it is changing or taking initiatives to fulfil those better and in more effective way. It is about
being included fully as the team member that has the focused on the clear goals, trusted and
empowered, receiving regular and constructive feedback of the employees so that their
performance can be enhanced effectively with this, it has supported in developing new skills and
also thanked and recognised for achievement(Saks, 2019). In addition to this, engaged
organisations consist of the strong and authentic values along with the clear mission, vision and
objectives and a clear evidence of trust. In which two way promises and commitments are
developed between the superiors and subordinates which are understood and fulfilled effectively.
This report is based on the hennes and mauritz company which is an Swedish multinational
clothing retail company that deals in the fast-fashion clothing for men, women, teenagers and
children. H&M operates in the 74 countries along with over 5000 stores under the various
company brands, it is refers to the second largest clothing retailing company across the globe.
Background to research organisation
H&M is an Swedish multinational clothing company with having headquartered in Stockholm,
Sweden. Which is established by erling perssson in 1947,that is specialise in selling fast- fashion
clothing for women, men children and teenagers. This has been operates in the 74 countries
along with over 500 stores (Sun and Bunchapattanasakda, 2019). When this is opened first in
Vasteras, Sweden, the shop was called hennes which is exclusively sold cloths for women. In
1968, persson has acquired the hunting apparel retailer Mauritz Widforss , which is having the
product rage of a menwear collection and then name of the company is changes to the henne &
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mauritz. In 1976, the company has been listed on the Stockholm stock exchange, after in a very
short time its first store that is opened in London outside the Scandinavia. H&M has continued to
expand in the Europe and start its online retailing shops in 1998 , that time it bought the domain
hm.com from the company which name is A1 in a non-published domain transaction. This has
been ranked twenty-first most valuable brand and making it the highest ranked retailer in the list
of survey.
research rational
This study aims to examine the role of the employment engagement in improving an
organisational performance along with the competitiveness. The main reason exist behind
performing or doing this research is to get the better understanding about the employment
engagement in the retailing industry and the organisation that is operating its business in the
same industry such as hennes and mauritz(Albrecht, Breidahl and Marty, 2018) Along with this,
with the help of this research, investigative will able to know about the the various role of the
employment engagement in the enhancement of the performance and competitiveness of the
company in the retailing industry. It will also support in analysing the relationship between
employment engagement and success of the organisation. In addition to this, with the support of
this investigation, researcher will be able to get the better insights of the topic and
accomplishment of the aim of research. It also help the company in to make the appropriate
strategies that provides support in engaging employees more in the company's activities in order
to get the better performance, productivity along with the companies competitiveness at the
market place.
research questions
The questions of research help in guiding researcher to perform the study systematically and
accomplish its aim. The research questions associated with this research project are as follows:
1. What is the concept of employee engagement in retail sector?
2. What is the role of employee engagement in improving organisational competitiveness in
retail industry?
3. What is the relationship between employee engagement and organisational success?
research aims and objectives
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Research Aim
The aim in relation to this project is “To determine the role of employee engagement in
exercise of improving organisational competitiveness: A case study on H&M.”
Research Objectives
The objectives associated with this research project are provided underneath:
1. To analyse the concept of employee engagement in retail sector.
2. To assess the role of employee engagement in improving organisational competitiveness
in retail industry.
3. To analyse the relationship between employee engagement and organisational success.
Literature review
A literature review is refers to the survey of scholarly sources that such as books,
journals and articles which is related to the specific topic or the research questions. This has
presents the current knowledge including substantive findings as well as the contribution of the
theoretical and methodology of the particular topic. This is refers to the secondary sources which
do not report new or original experimental work(Hameduddin and Fernandez, 2019). Literature
review is the simple summery of the sources along with the organisational pattern that combines
both summary ans synthesis. It is provides the new interpretation of the old material or data or
combine new with the old interpretation. Along with this, it might trace the intellectual
progression of the particular field that includes the major debates. As per the situation, the
literature review might be analyse he sources and provide support by giving the advice to the
reader on the most pertinent and relevant.
To examine the concept of employee engagement in retail sector
As per the view point of Ghulam Mustafa Shoaib, 2019, the employment engagement is
refers to the key importance in the success of the organisation. The true meaning of this concept
is the involvement of employees in the process of decision making, organisational mission and
objectives along with the most importantly their job satisfaction(Uddin, Mahmood and Fan,
2019). So these all are concepts which is important in the organisations, as many of the
researcher has found that it is very crucial for the success of the business in the retail industry. In
addition to this, the organisational social impact on the society is also depend upon the employee
engagement in the firm's objectives and goals. In order to create a productive and a positive work
environment, the relationships among the works is also very important. With this, the
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involvement of the employees in the decision making is concerned as crucial for the employee
welfare and organisational impact on the social lives of the employees. Affective aspect of the
employee's engagement could be describe through the concept of job satisfaction, as when a
person is satisfying with the job security then it will be more productive and loyal to the
company (Young and et. al., 2018). It has been also includes the workers involvement in the
employee's matter also develops an positive impact on the concept of employees engagement in
the organisations. The workers will stand as the more productive and motivated and keep on
trying making the employees happy with their effective performance and with that they own
company which will have the positive impact on the organisational outcomes. This is all depend
upon the feeling and perception of the worker about the company. Here are some aspects such as
differences among the races and racism of the employees that may have the negative impact and
reduces the chances of the positive and effective working environment along with the
organisational success. So the company have to take steps such as motivations sessions regarding
working relationship among the worker so that a better working environment can be
build(Tsourvakas and Yfantidou, 2018).
As per the view point of Kate Le Gallez, 2020, Employees which are connected with the
organisation, they work harder, stay longer along with this motivates other to do the same.
Employment engagement has been effected the every important aspect of the company which
includes profitability, revenue, customer experiences, employee turnover, sustainability etc.
various research has been shown that 92% of the business executives has believe that effective
performance, success of the team and positive outcomes of the organisation are the results of the
employment engagement within the organisation. Engagement of the employees refers to the
strength of the mental and emotional connection that an employees feel for the role they are
playing, team and the organisation(Othman and et. al., 2018). When an employees shares their
feelings and experiences about the work ans then they see nothing has been happens as the result,
that time employees disconnected with the feedback process. When it comes to employment
engagement then it is not enough to just survey the employees. Organisations in the retail
industry has been taken various initiatives for improving the employment engagement, there are
4 key key factors which are used in the e employment engagement, includes leadership,
enablement, alignment and development. As employees have seen the confidence in the leaders
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and get inspired and engaged by them, when a leaders recognize the importance of the people in
the organisational process(Cooper-Thomas, Xu and Saks, 2018)
To determine the role of employee engagement in improving organisational competitiveness in
retail industry.
As per the view point of Petra Horavathova 2021. The retail industry has been faced the
incredible degree of economic and political violence in the past decades. And those factors has
the major impact on the employees experiences. Employee engagement has the major impact on
the both, staff performance along with the overall organisational performance(Opoku‐Dakwa,
Chen and Rupp, 2018) This is has been describes as the positive work attitude that results which
has been results in the encouragement in the level of activation and identification with the
organisational goals, which has been considered as the most important reason behind the
functioning of all the organisations. In the current global business environment, just satisfaction
and stability along with the even loyalty and devotion is not enough to secure the desired
relationship between the performance and the positive business outcomes. It has been seen that
for a well functioning organisation, it becomes important to have the truly and fully committed
employee or staff(Martins and Nienaber, 2018). To determine the impact f the employee
engagement on the organisational functioning and it success, several studies has been conducted.
From that the most significant research has been supported by the British government. This has
been provide the advantage of employees retention, as organisation with the high engagement
reduces the turnover along with the hiring cost, as disengaged employee is on of the major factor
that contributes in the higher employee turnover. Engaging employee is described as the critical
for the retention of the valuable talent and engaged employees are more likely to be productive at
the consistent basis that results in the higher revenue. With the help of this, employees in the
organisation are more likely to invest in the work they do which leads to the higher quality of the
work produced. Engaged organisation has the double rate of success as compared to the less
engaged, according to the Harvard business review.
A Good team that did not require a daily discussion and the mental fuel to work towards
the goals or to meet the objectives on the daily basis is refers to the hight of the employee
engagement (Carter and et. al., 2018). That support the higher productivity, consequently and an
impressive customers satisfaction. Along with this, invested employees did not work only for
the money, but also for the feeling of belongingness that develops every and for the connection
that an individual has for the company. When a passion meets the contentment then commitment
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has been achieved to early. Decline retention rate can be solved by enhancing the practices of the
employee engagement at the work place, and this factor is help when an best employees is
planning to quite the job. Engaging employees is help making the company higher at the profit
table along with the results generated in the form of personal or a team success, it happened
when a committed employees are assigned at the task(Mazzei, 2018). Engaging employees is the
crucial for the organisation, as this flow the work faster and on the predetermined directions. For
understanding the importance of the employment engagement and various strategies for the
development to create an powerful organisations, there results and culture are always stand as the
reflection of good and effective employment engagement that is need to ensured as in order to
provide the company unmatchable competitive advantages at the market place along with the
heights that can not be matched by the other companies.
To analyse the relationship between employee engagement and organisational success
As per the view point of Peter. G. Furst, 2020. An engaged employees is the one which is
fully involved in as well as energetic and enthusiastic about their work and thus will act in a way
that shows their organisations interest(Lemon and Palenchar, 2018). Employee engagement is
the essentials aspect for the competitiveness of any organisation and particularly in the current
business environment. Research has been shown that organisation with the high employee
engagement has also encourages the customer satisfaction and achieve higher productivity and
operational efficiency along with the profitability that leads to the success of the organisation.
With the support of this company has healthier employees with the lower absenteeism and
reduced turnover. This can be viewed from the various perspectives such as cognitive, emotional
and behavioural. In which cognitive aspects is refers to the employee perception and beliefs
about the organisation, its leaders and working conditions. In addition to this emotional aspect is
related to the individuals attitude towards the organisation and its landers and it is influenced by
the cognitive perspective (Nienaber and Martins, 2020). Moreover, behavioural aspects is
described as the individual willingness to apply its efforts in the work which will results in the
benefits that added the value to the organisation. So employee engagement is different from the
employment satisfaction, motivation and also to the organisational culture.
In addition to this, there should be an integrated and management practices are to be align
in the organisational system and the work climate has to be supportive in order to maximize the
worker engagement within the organisation so that performance can be enhanced. Effective
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scholars of the organisation have find outs the four elements in the work environment that will
influenced the higher work involvement that are power, information, knowledge and recognition.
In which the power element of the work element has stated organisation truly and effectively
empowers the employees to participate in the decision making process regarding their own work,
so that they feel motivated and this will create the feeling of power to take the decision and
encourages the voice of their opinions with that they will be concerns before decisions are
made(Seymour and Geldenhuys, 2018). Furthermore, to be an effective worker , they need
information, which become the basic for the decision making, problem solving and proper
execution of the work. In this the challenge for the management is to set the effective process by
which worker the right information at the right time. This is also an important aspect for the
effective employee engagement as when a worker sees a direct link between what they do on
daily basis and the organisational goals and objective on whole then they will more effective and
efficient in working. The sort vertical aliment within the organisation has been proved to be
highly effective in engaging workers which results in the positive impact on the organisational
performance its outcomes. Which provides the competitive advantage to the organisation to and
different from the competitors at the market place. Knowledge is refers to the individual
capability and skill to perform a task, to realize this element, an organisation must hire and
promote the capable workers (Shrotryia and Dhanda, 2019) . They me given the right training ad
education as in order to enhance their ability and competence, this is will remain ineffective until
they are not provided with the right resources and performance that enable them to perform their
work or task at the superior level. And with that they have to be effectively empowered in to
order to make them able for assessment of the risk and uncertainty so that longer sustainability
and success of the company an be secure.
In the current situation or condition of the business environment, employment
engagement is crucial for the success of the organisation. A positive relation has been found
between the employee engagement ans the overall business and sustainability at the market
place. This has been effecting the vital matrices of the project completion process that includes
production, productivity, quality, safety, customers and partners, for the engaging employees
they have to be satisfied at the work place. It has been seen that in the various research that
happy employees are more productive, loyal, energetic and enthusiastic which are committed
stay with the company for the longer period of time. These all the aspects that is included in the
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employment engagement at the workplace and which are equally proportionate to the longer
suitability and the success of the company in the retail industry
Research methodology
Research methodology is refers to the specific procedure or technique that is used to identify,
select, process and analysis of the information on the particular topic. In research paper, the
methodology section gives permission to the reader as to critically evaluate the study and its
overall reliability and validity. This provide support to the researcher to collect the suitable data
and information which aligned to the targeted goal and objectives can accomplished in the
effective manner and with the perfection. This help in to make the process and easy and also
results have been perceived on timely based. The research have been defined as the systematic
collection of the information and it is observed for the promotion of the skills in nay topic. This
is an careful consideration of study on the particular concern or a problem with the help of
scientific methods(Ismail, Iqbal and Nasr, 2019). Or in the other words, this is an systematic
inquiry which is used to describe, explain and predict an control the observed phenomenon with
the help of systematic and rational methods. In the research methodology and research onion, it
is important to identify the various factors such as philosophies of investigation, strategies,
various approaches, methods, time structure, information or data collection and sampling size,
the sampling is necessary to know about the number respondent in the survey, and the actual
result is based on the survey, it has been described through the research onion which is explained
below:
Research philosophies: this is refers to the belief of the way in the data of the particular
phenomenon has to be collected, evaluated and used. This has been associated with the sources,
nature and development of knowledge(Jena Pradhan and Panigrahy, 2018). Along with this the
idea of creation of knowledge may appear to be great and engagement in the knowledge creation
is the part of the dissertation. It includes the process of collection of the primary and secondary
data in order to analyse it to provide the answers to the research question and that answer marked
as the development of the new knowledge. It directly look towards the outlook under which
relative data, information and statistics get gathered that provide support in to finish the
objectives effectively and in a successful manner. Here it is segmented in terms of philosophy
through which honest concept is preprogrammed as per the consideration of the continuous
value. This is considered of two segments that are positivism and interpretivism philosophy. For
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finishing the investigation, the positivism philosophy is being used because this provides more
valuable and appropriate informations within the certain given period of time.
Research approach: this is described as the plan and procedure that is consist of the
steps of broad assumptions which is used to elaborate the methods of the data collections along
with the analysis and interpretation of the data. Here comparative data is being divided and
categorises on the basis of reasoning(Kim and Gatling, 2018). Thus it is based on the nature of
the research problem which is has been addressed for the solution. This is basically consisting of
the two types of the approaches that is inductive and deductive approach. According to the
concept of according to the concept of inductive research has been associated with the search for
pattern through the observation and then develop the explanation and theories for those patterns
by the series of hypothesis. Moreover, deductive approach is concerns with the reasoning of the
particular to the general, it is consist of developing a hypothesis which are based on the existing
theory and then development of the research strategy in order to test the hypothesis, in this
investigator has used he deductive approach for the completion of this report, as to get more
appropriate information which will be easy to get analysed and for the interpretation(Kidron and
Peretz, 2018).
Research strategy: this is refers to the overall plan that is used for conducting research
study. This helps the investigator by guiding in planning of research , execution of plan and
monitoring and controlling of the performance with the continuousness implementation of data
so that results can be achieved in the effective manner which is appropriate to the investigation
phenomenon (Duthler and Dhanesh, 2018), it provide support by telling the researcher how to
collect and analysis the data. It is utilized for the investigator to produces the more productive
scale of understanding with the observation that is find out on the timely basis. In this searcher
has used the quantitative method for the collection of data in order to complete the investigation,
in which questionnaires and quantitative feedbacks and surveys are going to be utilised(Burnett,
and Lisk, 2019).
Research choice: this aspect is here to help in understanding about how the data is used
for the research of the audience measurement and what data is collected and that has to be kept
safely which is further used for the research purpose. Here investigator makes the actual
utilisation of the both quantitative as well as qualitative method in order to gather the
information for the research(Djoemadi, and et. al., 2019). In addition to this, quantitative method
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