Organizational Design: Employee Engagement and Stakeholder Impact

This report provides a comprehensive analysis of employee engagement within contemporary firms, focusing on its implications for organizational structure and stakeholders. It begins by defining employee engagement as the enthusiasm and dedication an employee feels for their job, highlighting its importance for job satisfaction, employee morale, and organizational productivity. The report identifies key components of employee engagement, including leadership, rewards and recognition, and professional growth, and discusses various modes of employee engagement such as building engagement strategies, prioritizing communication, creating feedback cultures, and maintaining transparency. It further explores the implications of these engagement modes on organizational productivity, customer service, and stakeholder satisfaction. Finally, the report delves into relevant motivation theories, including Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, providing empirical evidence to support the importance of employee engagement in achieving organizational success, particularly within the context of Tesco Plc.

Organisational Design

TABLE OF CONTENT
NTRODUCTION.............................................................................................................................3
2. Identifying the different aspects of employee engagement and its implications ....................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

NTRODUCTION
Organizational design refers to the process of making the structure of the organization
with its objectives in order to improve the efficiency and effectiveness of the company. As the
work in the organization can be trigger and its need to be improved by having the good process
and structure of the organization. The report is based on the Tesco Plc. Which is the British
multinational groceries situated in the UK. This report will outline the meaning of the employee
engagement and its importance in the organization. Further this report will outline the firm and
explaining their use or mode of employee engagement. The report will also outline the mode of
employee engagement on organization and its stakeholders. At last this report will outline the
theories and empirical evidence on the organization.
2. Identifying the different aspects of employee engagement and its implications
a) Defining the employee engagement
Employee engagement is the human resource concept that used to describe the level of
enthusiasm and the dedication an employee feels for their job. The engaged employees are used
to care about the work and about the performance of the organization. This makes them feel that
their efforts are helping the organization in order to achieve the objectives of the company (Sun
and Bunchapattanasakda, 2019). The employee engagement is very important for the
organization as it is links with the job satisfaction and the employee morale. The engaged
employee in the organization are considered to be productive and give the high performance. The
employees in the organization can foster the engagement by having the effective communication,
offering reward and discussing career development. This used to measures about that how the
staff of the organization feel about their workplace. Communication is the important part that
help the employees in order to create and maintain the employee engagement. This used to play
an important role in the company values and achievements.
The employers of the Tesco Plc. can encourage the employee engagement by using the
different ways. The ways are communicating expectations clearly, offering them rewards and
promotion for their great work in the organization. By keeping employees informed about the
performance of the company make them feel valued in the organization. The organization must
respect the ideas and beliefs which makes them feeling of heard. By having the employee
engagement if make them know about their work and its meaning and for this they must be
appreciated by the company (Kwon and Kim, 2020). There is basically the three components of

the employee engagement which are leadership, rewards and recognition and professional
growth. As many organizations is facing the problem of employee engagement, so they must
focus on these three components in order to maintain the employee engagement.
b) Importance of employee engagement
Employee engagement is very crucial in the organization as it helps the company to have
the effective strategies in the workplace by creating the better work culture. By having the
employee engagement it helps the company to reduce the staff turnover, increases the
productivity, build the better culture, customer relationships and having its impact on the
profitability. The employee engagement used to matter the most in the organization because it
has the direct impact on the operations and profits of the company. The importance of employee
engagement is as described below:
1. Improve employee loyalty: By having the employee engagement, it helps the
company to retain their employees for the longer time. By this it improves the
employees loyalty and increases the staff retention (Sendawula and et.al., 2018).
By having this the employers not used to switch their job and make them satisfied
with their existing job.
2. Increase the productivity: By having the employee engagement, it helps the
organization to have better working which helps in increase in the productivity of
company. Having the right employees in the organization makes the growth and
increases the production of the entity.
3. More profitability: By having the employee engagement, it helps the organization
to have better working which helps in increase in the profitability of the company.
By having the talented and right employees in the organization makes the growth
and increases the profitability (Saks, 2019). By retaining the employees and
increasing the producing helps the company in order to increase in the profits too.
4. Higher employee satisfaction and happiness: The employees of the organization
must feel satisfied with their working. This will help the organization to retain the
employees and have the great level of enthusiasm. By having the satisfaction and
happiness with their job it directly has the great impact on the productivity and
profitability of the company.

5. Better customer services: The engagement of the employees helps the
organization in order to improve the customers services. This is very beneficial
for the company in order to retain the customers dan this up sells the products of
the organization.
c) Identifying a firm and explaining their use or mode of employee engagement
There are various modes of employee engagement which will help the employee to have
the god action plan and to have the effective work in the organization. The modes of the
employee engagement are as follows:
1. Build the engagement strategy: It is very important for the company to recognize
the employee engagement as the priority. By keeping the employee engagement
as on the priority helps the employees to feel motivated in the organization
(Albrecht, Breidahl and Marty, 2018). By having engagement surveys, proper
communication, regular feedbacks, and the development plans makes the progress
of the organization.
2. Considering what motivates the employees: By knowing the source of motivation
of the employees helps the company to have the employee engagement in the
organization. By conducting the survey in the organization will help the company
to know about the best motivational factors which makes the employees to retain
in the organization.
3. Prioritize the regular communication with employees: By having the lot of work
in the organization makes difficult for the employees to have communication. In
order to get employee engagement and makes the employees to retain in the
organization the managers of the company must communicate with employees
and rake ideas from them.
4. Create the good feedback culture: In order to understand the employees the
company must have the feedback culture in which the employees used to provide
the hindrances in their work. By prioritizing the proper and continuous feedback
will help the company in order to respond with the individual needs.
5. Recognition programs: By conducting the recognition program will help the
company to have the good employee engagement (Young and et.al., 2018). As the
employees must be appraised for their done work in the organization. By getting

appraised and recognized for the good work motivates the employees to do their
best. This will help the organization to retain the best talent which will help in
productivity and profitability of the company.
6. By maintaining transparency: The organization must have the transparency of the
work and profitability which helps the employees to have faith on the
organization (Nazir and Islam, 2020). But some companies used to hide this
which makes the employees to have back-foot on the efforts done by them.
d) Implications of identified mode of employee engagement on organization and its
stakeholders
The different modes are identified of the employee to get engaged with the organization.
By having this it will have good implication son the organization and with the stakeholders
which are as follows:
1. By having the employee engagement strategy helps the organization and its
stakeholders to have good productivity. It helps to provide the better customers
services which increases the productivity of Tesco Plc.
2. By motivating the employees helps the company to increase in the productivity of
the company and makes the stakeholders of the company to have more
participation in the company.
3. By taking the feedback from the employees makes them feel valued in the
organization (Fallatah and Syed, 2018). This will make the organization to have
good and new ideas which helps the company to have the good market share in
the which increases the faith of the stakeholders.
4. The organization by having the transparency with the employee increases the
profitability and thus it leads to have more stakeholder satisfaction. Tesco plc.
Should not hide anything with their employees as it will have impact on the
profitability of the organization.
e) Relevant theories and empirical evidence
Motivation theories
Maslow's Hierarchy of needs: Maslow's hierarchy of needs is the motivational theory
which used to describe the five- tier of the human needs which are defined in the level of
pyramid (Maslow's Hierarchy of Needs, 2022). The hierarchy of the theory is described below:

1. Physiological needs: These are the basic needs for the survival of the humans
which are air, food, shelter, clothing, warmth, sleep, etc. These are the important
needs which must be satisfied in order have the proper functioning of the humans.
2. Safety needs: After the physiological needs are satisfied, the humans wants the
safety and security needs. These needs can be fulfilled by having the good income
or by having of family.
3. Love and belongingness: after having the above two needs, the another need that
human wants feeling of love and belongingness (Motyka, 2018). The term
belongingness refers to the emotions of the humans which are needed for
interpersonal relationships in order to have satisfaction in their life.
4. Esteem needs: These needs refers to the self- respect and self- administration
which the human needed in order to get satisfied in their life. Self-satisfaction
comes from the day to day activities that allows the person to gain respect and
also to provides respect to others in the society. This is the most required need
that the person wants in order to get satisfy in their job as well as in their life.
5. Self- actualization needs: This need is defined as the person must realize the full
potential of itself. By analysing this it helps the person to feel motivated in their
work and satisfied with their doing job.
The employees of the organization must be motivated by the Maslow's motivational
theory which helps the organizational employees to feel motivated and satisfied with their work.
If the employees of the organization are not satisfied with their job they may switch their job in
order to get the job satisfaction with their working.
Herzberg's Two factor theory: A behavioural scientist has proposed the two factor theory
in the year 1959. It defines that there are certain factors in the organization that used to have the
job satisfaction while there are some factors which causes dissatisfaction in the workplace. In
this there are two factors which includes hygiene factors and the motivational factors. The two
factors are described as below:
a) Hygiene factors: The hygiene factors are the job factors which are important for the
existence of having the motivation in the organization. If these factors are not in existence that
this will leads to the dissatisfaction in the organization. The hygiene factors includes the
following:

 Pay: The salary structure of the organization must be good which used to motivate
the employees. It must be equal and competitive according to the work of
employees in the organization.
 Company policies and administrative policies: The policies of the company
should not be rigid as the employees cannot work the rigid policies. By having the
good working hours, fair and clear rules, dress code, breaks, etc. must be provided
to the employees. This will help in the employee engagement of the organization.
 Fringe benefits: The employees of the organization must be offered with the
medical services plans, benefits of the family members, etc. which provides them
safety and helps in gaining employee engagement.
 Physical working conditions: The working area of the employees must be clean,
safe and hygienic (Ghatak and Singh, 2019). The organization must provide the
new and innovative technology which used to maintain the employee engagement
in the cited organization.
 Status: The status of the employee in the organization must be familiar and good
which helps the employees to get engaged with the other staff of the organization.
 Interpersonal relations: The employees must have good and positive relationship
with its subordinates, peers and superiors. By having the good relationship with
the other members will help the employees to have good working in the
workplace.
b) Motivational Factors: These factors helps the employees to get motivation in the
organization by having good work in the organization. The motivational factors includes the
following:
 Recognition: The employees must be appraised for their done work in the
organization. By getting appraised and recognized for the good work motivates
the employees to do their best.
 Growth and promotional opportunities: By having the promotion of the
employees and making them grow in the organization used to motivate the
employees (Li, Chen and Hui, 2019). The organization must also grow with the
changes in the competitive market which will increases the productivity of the
employees.

 Responsibility: By taking the responsibility the employees get attentive toward
their work which makes them more productive in the workplace. The managers
of the organization must provide them some ownership of the work but have some
control on the work.
 Meaningful of the work: The work done by the employees should be meaningful,
interesting and challenging. By doing the interesting work will motivate the
employees in order to perform best in the organization.
Social exchange theory: According to this theory people used to weigh the potential
benefits and risk the social relationships. This is basically the study of the social behaviour by
having the interaction with the two parties that used to implement the cost- benefit analysis in
order to determine the risks and benefits. By using this theory the employee in the organization
have good and positive relationship with its subordinates, peers and superiors. The organization
must also provide them benefits in order to do good work which makes them increase in the
employee engagement. The employees must have the good relationship with the other members
will help the employees to have good working in the workplace.
Psychological contract: In this contract the individuals beliefs, expectations, ambitions
and obligations which are perceived by the employer of the organization. In this, the company
sued to set the dynamics for the good relationship and define the practicality of the work done in
the organization.
CONCLUSION
From the above report it is concluded about the meaning of the employee engagement
and its importance in the organization. Further this report has evaluated the firm and explained
their use or mode of employee engagement. The report has also described about the mode of
employee engagement on organization and its stakeholders. At last this report has described
about the different theories which includes motivation theories, scientific management, reward
management, social exchange theory and psychological contract and empirical evidence on the
organization.

REFERENCES
Books and Journals
Albrecht, S., Breidahl, E. and Marty, A., 2018. Organizational resources, organizational
engagement climate, and employee engagement. Career Development International.
Fallatah, R. H. M. and Syed, J., 2018. A critical review of Maslow’s hierarchy of
needs. employee motivation in Saudi Arabia, pp.19-59.
Ghatak, S. and Singh, S., 2019. Examining Maslow’s hierarchy need theory in the social media
adoption. FIIB Business Review. 8(4). pp.292-302.
Kwon, K. and Kim, T., 2020. An integrative literature review of employee engagement and
innovative behavior: Revisiting the JD-R model. Human Resource Management
Review. 30(2). p.100704.
Li, Z., Chen, Z. and Hui, Y., 2019. Portfolio selection through Maslow’s need hierarchy
theory. Applied Economics. 51(4). pp.364-372.
Motyka, B., 2018. Employee engagement and performance: a systematic literature
review. International Journal of Management and Economics. 54(3). pp.227-244.
Nazir, O. and Islam, J. U., 2020. Effect of CSR activities on meaningfulness, compassion, and
employee engagement: A sense-making theoretical approach. International Journal of
Hospitality Management. 90. p.102630.
Saks, A. M., 2019. Antecedents and consequences of employee engagement revisited. Journal of
Organizational Effectiveness: People and Performance.
Sendawula, K. and et.al., 2018. Training, employee engagement and employee performance:
Evidence from Uganda’s health sector. Cogent Business & Management. 5(1).
p.1470891.
Sun, L. and Bunchapattanasakda, C., 2019. Employee engagement: A literature
review. International Journal of Human Resource Studies. 9(1). pp.63-80.
Young, H. R. and et.al., 2018. Who are the most engaged at work? A meta‐analysis of personality
and employee engagement. Journal of Organizational Behavior. 39(10). pp.1330-1346.
Online
Maslow's Hierarchy of Needs. 2022. [Online]. Available through:
<https://www.verywellmind.com/what-is-maslows-hierarchy-of-needs-4136760>