Roger MULLER, Elroy SMİTH, Riyaadh LİLLAH

9699

THE IMPACT OF EMPLOYEE ENGAGEMENT ON ORGANISATIONAL PERFORMANCE: A BALANCED SCORECARD APPROACH

THE IMPACT OF EMPLOYEE ENGAGEMENT ON ORGANISATIONAL PERFORMANCE: A BALANCED SCORECARD APPROACH

Employee engagement is widely-considered to be a powerful and useful tool to assist organisations achieve competitive advantage. This study investigates employee perceptions regarding the impact of engagement on organisational performance in the Eastern Cape Province. Organisations often fail to enhance long-term business success when they focus narrowly on financial performance measures. This study, consequently, utilised the balanced scorecard (BSC) approach, consisting of financial, customer, internal process as well as learning and innovation measures to evaluate perceptions of organisational performance. A quantitative research design was utilised, surveying employees (n=428) from private organisations through non-probability convenience sampling. Using multiple regression analysis, the empirical results revealed that employee engagement positively and significantly influenced all four measures of the BSC.
Keywords:

employee engagement, organisational performance, balanced scorecard,

PDF

___

  • Bakker, A.B. & Demerouti, E. (2008). Towards a model of work engagement. Career Development International. 13(3):209–223.
  • Coetzee, M., Schreuder, D. & Tladinyane, R. (2014). Employees’ work engagement and job commitment: The moderating role of career anchors. SA Journal of Human Resource Management. 12:1–12.
  • DEDEAT. (2013). The Eastern Cape socio-economic review and outlook. http://www.dedea.gov.za/research/Research/Eastern Cape Socio Economic Review and Outook 2014.pdf. Accessed 2016/11/16
  • Els, G., Erasmus, P., Viviers, S., Alsemgeest, L., du Toit, E., Ngwenya, S. & Thomas, K. (2014). Corporate finance: A South African perspective. 2nd ed. Cape Town: Oxford University Press.
  • Gallup. (2013). State of the global workplace. http://www.gallup.com/file/services/176735/State of the Global Workplace Report 2013.pdf. Accessed 2015/04/06.
  • Ghauri, P. & Gronhaug, K. (2010). Research methods in Business Studies. 4th ed. Harlow: Prentice Hall.
  • Gruman, J.A. & Saks, A.M. 2011. Performance management and employee engagement. Human Resource Management Review. 21(2):123–136.
  • Hair, J.F., Black, W.C., Babin, B.J. & Anderson, R.E. (2014). Multivariate data analysis. 7th ed. Upper Saddle River, NJ: Pearson.
  • Harter, J.K., Schmidt, F.L. & Hayes, T.L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis. The Journal of Applied Psychology. 87(2):268–279.
  • Heizer, J. & Render, B. (2013). Principles of operations management. 9th ed. Boston: Pearson.
  • Hoffman, K., Czinkota, M., Dickson, P., Dunne, P. & Griffin, A. (2004). Marketing principles and best practices. 3rd ed. Mason Ohio: South-Western College.
  • Iddagoda, Y.A., Opatha, H. & Gunawardana, K.D. (2016). Towards a conceptualization and an operationalization of the construct of employee engagement. International Business Research. 9(2):85.
  • Ireland, R.D., Hoskisson, R.E. & Hitt, M.A. (2012). The management of strategy: Concepts and cases. 10th ed. Mason: South-Western College Publishing.
  • Jones, M. (2014). SA labour productivity at the lowest level in 46 years. http://www.adcorp.co.za/NEws/Pages/SAlabourproductivityatthelowestlevelin46y ears.aspx. Accessed 2015/04/01.
  • Kahn, W.A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal. 33(4):692–724.
  • Kaiser, H.F. (1991). Coefficient alpha for a principal component and the KaiserGuttman Rule. Psychological Reports. 68(3):855–858.
  • Kataria, A., Garg, P. & Rastogi, R. (2014). The role of work engagement in the pursuit of organisational effectiveness. International Journal of Indian Culture and Business Management. 9(1):37–54.
  • Kataria, A., Rastogi, R. & Garg, P. (2013). Organizational effectiveness as a function of employee engagement. South Asian Journal of Management. 20(4):56–74.
  • Maslach, C. & Leiter, M.P. 1997. The Truth about Burnout: How Organizations Cause Personal Stress and what to Do about it. Jossey:Bass.
  • May, D.R., Gilson, R.L. & Harter, L.M. (2004). The psychological conditions of meaningfulness, safety and availability and the engagement of the human spirit at work. Journal of Occupational and Organizational Psychology. 77(1):11–37.
  • McCain, S.L.C., Jang, S. & Hu, C. (2005). Service quality gap analysis toward customer loyalty: Practical guidelines for casino hotels. International Journal of Hospitality Management. 24(3):465–472.
  • Nunnally, J.C. & Bernstein, I.H. (1994). The assessment of reliability. Psychometric Theory. 3(1):248–292.
  • Olivier, A.L. & Rothmann, S. (2007). Antecedents of work engagement in a multinational oil company. SA Journal of Industrial Psychology. 33(3):49–56.
  • Perkins, M., Grey, A. & Remmers, H. (2014). What do we really mean by “Balanced Scorecard”? International Journal of Productivity and Performance Management. 63(2):148–169.
  • Saks, A.M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology. 21(7):600–619.
  • Salanova, M., Agut, S. & Peiró, J.M. (2005). Linking organizational resources and work engagement to employee performance and customer loyalty: The mediation of service climate. Journal of Applied Psychology. 90(6):1217–1227.
  • Schaufeli, W.B & Bakker, A.B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi‐sample study. Journal of Organizational Behaviour. 25(3):293–315.
  • Schaufeli, W.B., Bakker, A.B. & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: a cross-national study. Educational and Psychological Measurement. 66(4):701–716.
  • Schaufeli, W.B. & Salanova, M. (2007). Work engagement: An emerging psychological concept and its implications for organizations. In S. Gilliland, D. Steiner & D. Skarlicki (Eds). Managing social issues in organizations. 5th ed. 135–177.Information Age Publishing.
  • Schaufeli, W.B., Salanova, M., Gonzalez-Roma, V.A. & Bakker, A.B. (2002). The measurement of engagement and burnout: A two-sample confirmatory factor analytic approach. Journal of Happiness Studies. 3:71–92.
  • Schneider, B., Macey, W.H., Barbera, K.M. & Martin, N. (2009). Driving customer satisfaction and financial success through employee engagement. People and Strategy. 32(2):22.
  • Schwartz, T. (2011). What it takes to be a great employer. https://hbr.org/2011/01/what-it-takes-to-be-a-great-em. Accessed 2016/04/26.
  • Shahin, A., Naftchali, J.S. & Pool, J.K. (2014). Developing a model for the influence of perceived organizational climate on organizational citizenship behaviour and organizational performance based on balanced scorecard. International Journal of Productivity and Performance Management. 63(3):290.
  • Shuck, B., Reio Jr, T.G. & Rocco, T.S. (2011). Employee engagement: An examination of antecedent and outcome variables. Human Resource Development International. 14(4):427–445.
  • Shuck, B. & Wollard, K. (2010). Employee engagement and HRD: A seminal review of the foundations. Human Resource Development Review. 9(1):89–110.
  • Sim, K.L. & Koh, H.C. (2001). Balanced scorecard: A rising trend in strategic performance measurement. Measuring Business Excellence. 5(2):18–27.
  • Sonnentag, S. (2003). Recovery, work engagement, and proactive behavior: A new look at the interface between nonwork and work. Journal of Applied Psychology. 88(3):518–528.
  • StatsSA. (2016). Quarterly Labour Force Survey (Quarter 2). http://www.statssa.gov.za/publications/. Accessed 2016/10/23.
  • StatSoft. (2013). Statistica Electronic Software Manual. www.statsoft.com Accessed 2016/08/31.
  • Towers-Perrin. (2003). Working today: Understanding what drives employee engagement. www.towersperrin.com. Accessed 2013/10/27.
  • Upadhyay, A.Y.A. & Palo, S. (2013). Engaging employees through balanced scorecard implementation. Strategic HR Review. 12(6):302–307.
  • Van Zyl, L.E., Deacon, E. & Rothmann, S. (2010). Towards happiness: Experiences of work-role fit, meaningfulness and work engagement of industrial/organisational psychologists in South Africa. SA Journal of Industrial Psychology. 36(1):1–10.
  • Werner, A. (2011). Organisational Behaviour: A contemporary South African perspective. 3rd ed. Pretoria: Van Schaik.
  • Zikmund, W.G., Babin, B.J., Carr, J.C. & Griffin, M. (2009). Business research methods. 8th ed. Mason: Cengage Learning.
International Journal of Economics and Finance Studies-Cover
  • Başlangıç: 2009
  • Yayıncı: Sosyal Bilimler Araştırmaları Derneği
Arşiv
Sayıdaki Diğer Makaleler

THE IMPACT OF EMPLOYEE ENGAGEMENT ON ORGANISATIONAL PERFORMANCE: A BALANCED SCORECARD APPROACH

Roger MULLER, Elroy SMİTH, Riyaadh LİLLAH

KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES

Yavuz YILDIRIM, Feyza BALAN

AN ANALYSIS OF THE SOCIO-ECONOMIC ANTECEDENTS OF HOUSING INSECURITY

Steven Henry DUNGA, Wcj GROBLER

PREDICTING STUDENT SUCCESS IN PUBLIC ECONOMICS

Z ROBİNSON