Employee Engagement And Organizational Performance: A Human Resource Perspective

Abstract

Employee engagement has emerged as a crucial factor influencing organizational performance and success, garnering significant attention from scholars and practitioners alike. This review paper explores the intricate relationship between employee engagement and organizational performance from a human resource perspective. By synthesizing existing literature, this paper provides a comprehensive analysis of the mechanisms through which employee engagement impacts various dimensions of organizational effectiveness.

The paper begins by defining employee engagement and delineating its key components, including affective, cognitive, and behavioral dimensions. Drawing on theories such as social exchange theory and self-determination theory, the paper elucidates the antecedents of employee engagement, including leadership style, organizational culture, job characteristics, and employee well-being. Moreover, it discusses the role of human resource practices, such as recruitment, training, and performance management, in fostering employee engagement.

Furthermore, the paper examines the outcomes of employee engagement on organizational performance across multiple levels, including individual, team, and organizational levels. It highlights the positive effects of employee engagement on employee productivity, job satisfaction, retention, innovation, customer satisfaction, and financial performance. Additionally, the paper explores potential moderating factors, such as industry context and organizational size, that may influence the relationship between employee engagement and organizational performance.

The review also identifies gaps and limitations in the existing literature, including the need for more longitudinal studies and research examining the mediating mechanisms linking employee engagement to organizational outcomes. Finally, the paper offers practical implications for human resource management practitioners, emphasizing the importance of fostering a culture of engagement and implementing evidence-based strategies to enhance employee engagement and, consequently, organizational performance.