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Human Resource Management
Human Resource Management
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Introduction
The workforce of any organization tends to be insecure due to the gloomy impact of a slow economy caused by a number of factors one prominent example being the coronavirus outbreak with no signs of improvement. Companies are struggling to remain relevant as more market entrant mean poor prices and increased alternatives for the consumer. Staff salary and satisfaction levels are jeopardized as entrants compete for deals, as all service providers want to make the lowest bid. Employee turnover and retention are only two of the many aspects of a firm that are directly impacted by an economic recession. In the case study, Hangarau Tech is battling talent management issues and low productivity. For the case of Hangarau Tech, among the problems that affect the organization is sluggish productivity, gaining new talent, lack of motivation which has resulted in increase of absenteeism and employee retention. However, the two main problems are reduced productivity and attracting new talent in the organization.
Three causes of the current issues
In the context of human resource management (HRM), employees hold particular skills, abilities, expertise, and desirable work attitudes, and whose services are needed for the purpose of carrying out particular specified activities that are needed to achieve corporate objectives. Kang & Lee (2021) define HRM in terms of the workforce, noting that employees are the most important asset in a firm. This translates to having superior quality services, better skills, better interaction with consumers, and so on. For Hangarau Tech, several reasons can be seen as the root cause of the problems that are currently experienced in the organization but the most probable ones are: complacency from the management leading to low morale and job dissatisfaction, resistance to change in the management evidenced by poor employee compensation strategies, and poor managerial strategies leading to a reluctance and complete lack of career development opportunities for employees
Assessment of how the Causes Drive Organizational Problems
Managerial Complacency
Complacency by the management is an issue that has created a monotonous environment for the employees. One of the immediate consequences of a complacent management practice has been a lack of motivation practices for the workforce leading to job dissatisfaction. Job satisfaction is an outcome of an assessment of work attributes and a perception that is positive in relation to work. Job dissatisfaction means that a majority of the employees are not happy with the current position of the firm and their own contribution. Employees are required to interact with co-workers and managers, adhering to corporate rules and policies, fulfilling performance criteria, and putting up with difficult working conditions (Davidescu et al., 2020), elements that can be measured in terms of good or poor quality. It has been discovered that an individual’s job satisfaction level and the retaining of positive thoughts about the same job have a positive association, whereas an individual unsatisfied with his job has unpleasant feelings and perception about the job and company (Reddy, 2020). When people are unsatisfied with their work, they are less likely to get involved with their work, and have poor loyalty to the company, a slew of negative repercussions ensue.
Employees who are dissatisfied may disengage psychologically, physically, or even behave aggressively in reprisal for perceived wrongdoings. On the other hand, satisfied personnel may go above and beyond the call of duty for their organizations, have spotless work records, and strive for excellence in all aspects of their careers. The long-term repercussions of work dissatisfaction are numerous. Cost increases in recruiting, selecting, and training new recruits, demoralization of existing staff, an adverse public picture of the institution, interruption of day-to-day operations, and reduced corporate opportunities to pursue future objectives and growth strategies are some of the negative impacts of job turnover on companies (Arifin, Nirwanto, & Manan, 2019). As a result, it is critical to have a complete grasp of the elements that contribute to job satisfaction and discontent in order to prevent the harmful repercussions of job dissatisfaction.
Slow Adaptation to Change and Resisting Change Attitude
The other problem that exists in Hangarau Tech is resistance to change in the management evidenced by poor employee compensation strategies. The organization increased the cost of living pay although this did not amount to increased productivity levels and attrition (Reddy, 2020). Compensation issues relate to the perception of value from employees and how they think they are needed at Hangarau Tech. Bana and Kessy (2017) report that there exists a positive correlation between compensation strategies and employee productivity. Prior studies have associated a company’s potential to recruit, motivate, and keep top talent through competitive wages and suitable rewards to its profitability and achievement (Khalid & Nawab, 2018). As a result, numerous businesses around the world are trying to identify revolutionary compensation strategies that are tightly correlated to enhancing performance among employees while retaining top in an ever-competitive business environment. As per Long (2017), corporates in Canada are increasingly implementing compensation strategies that include direct and indirect financial compensation, along with perks that motivate employees and ultimately enhance employee motivation while ensuring that top talent is retained.
Numerous organizations clearly conform to financial compensation like wages, pay rates, or performance-related payments in order to keep employees and outsmart their competitors (Kang & Lee, 2021). Worker benefits in the nation are created to safeguard individuals and their families from losing income for example, as a result of health-related problems or other job-related financial disruptions, as well as to enhance employees’ overall quality of life via special workplace programs and services. Healthcare, prescription, vision, and dental plans, group disability, workforce development plans, retirement pension benefits, and so forth are examples of extra health coverage not included in the provincial plan. The implementation of different compensation mechanisms has boosted employee productivity in the short and long term, creating a competitive advantage over corporates that trail behind in terms of compensation strategies (Khudhair, et al., 2020). A firm’s staff members must be rewarded for creating an effective competitive environment. This is among the most important factors that companies must consider in order to attain high levels of productivity. Extrinsic rewards like raises in pay, promotions, and bonuses motivate some workers, while intrinsic rewards like appreciation, compliments, and acknowledgement on the job motivate others people (Bana and Kessy, 2017). If employees feel that their input towards the attainment of organizational objectives are not squarely compensated, they tend to get demotivated and disengaged and eventually this will result in other or exacerbate the problems that an organization may be currently facing.
Poor Managerial Strategies Leading to a Reluctance and Complete Lack of Career Development Opportunities
Employee attrition has been linked to a lack of prospective career advancement in previous study on workforce activity. A dearth of career development and progress is cited by over 40% of outgoing workers as a dissatisfying aspect of their work. Simultaneously, 28% of workers are actively looking for work, while 42% are passively interested in new chances (Dik, Sargent, and Steger, 2008). According to study, over two-thirds of workers feel a lack of professional growth with their present workplace is more than sufficient to make them hunt for a new job. Many people’s professional ambitions include the desire to enhance their careers. When a present employment has some possibilities to look forward to, it will spark one’s interest. Whenever workers’ possibilities for advancement stop or disappear, on the other side, it might lead to job dissatisfaction (De Winne et al., 2019). Feeling stuck can drive employees out the door in search of greater opportunities. When a company exhibits a caring environment for professional growth and success, employees are more motivated.
A lack of development opportunities is a morale reduction issue because then the employee perceives that he/she is not as important to Hangarau Tech as they would wish. Managers need to set aside some time and resources with their employees to learn about their goals and aspirations for their careers. They must also assist in the development of a strategy for achieving their objectives. Several individuals look for jobs with companies that are prepared to invest in their employees’ growth and development. Helping employees develop their skills might inspire them to produce better work and spend more time to the company (Al Amri & Pandey, 2019). Workers may also be more content with their current position if they are supported and set up for career progression. Companies have traditionally paid a high price for employee turnover, but due to tight job markets and the progressively collaborative nature of occupations, the cost of losing staff is rising in several sectors.
Strategic HRM theories to the organisation’s management approach
SHRM is a sequence of scheduled human resource (HR) engagements and initiatives designed to help a business accomplish its objectives. The emphasis of this description has been on how firms build and integrate HRM strategies in order to complement their business goal (Mohammed, 2019). The acknowledgement that companies can be more efficacious if their human resources are well managed with HR policies and practices that produce the right number of employees with the desired behaviour, skillsets, expertise, and motivation to the institution underpins strategic human resource management. To put it another way, strategic human resource management is a combination of a firm’s overall strategic goals with its human resource strategy and execution.
Universalistic or best practices approach
In the case of Hangarau Tech, the HR could implement professional training systems to keep employees motivated and reduce the turnover levels. Whereas the ‘best practices’ and ‘contingency’ approaches focus more on how Human Resources (HR) can help Hangarau Tech ensure long-term competitive edge, the resource-based-view strategy to coordinating HR activities with corporate strategy presents the conceptual and theoretical foundation for SHRM (Hamadamin & Atan, 2019). According to this concept, certain Human Resource Management (HRM) operations are superior than others, and Hangarau Tech could perhaps point out and implement these operations. This implies that studies have suggested that when firms adopt a best-practices strategy, their overall performance will indeed improve (Mohammed, 2019). Internal career prospects (employing mainly from within), professional training systems (rigorous training opportunities for staff members to acquire skills needed), outcome-oriented appraisal methods (outcome-based performance ranking), job security (feeling safe regarding continued employment), involvement (participation in decision making and problem solving), and revenue sharing (consideration for organisational effectiveness on a long-term basis) are all examples of HR practices (Dastmalchian et al., 2020).
Fit or contingency approach
This strategy is founded on the fact that some HRM practices have a synergistic effect on corporate performance. The consistency between Human resource management practices indicates a horizontal fit, whereas the alignment between these practices indicates a vertical fit (Mohammed, 2019). The contingency method is supported by a large body of research that shows a link between internally consistent human resource initiative and the effectiveness of an organization. The contingency method is founded on the idea that when human resource management practices are in sync with one another and with the firm’s strategic goals, they can improve performance of the firm. This approach is applicable to Hangarau Tech’s position in order to create a fit between its HRM practices and the general effectiveness of the organization.
Resource-Based-View Approach
As per the Resource-Based-View theory, for a firm’s assets (that is, capital equipment, human resources, and organizational capital) to offer an organization with a sustainable competitive edge, four factors pertaining to the resource should be fulfilled: (a) the resource have to add positive value to the company, (b) the resource has to be distinctive or scarce among rivals, (c) the resource has to be difficult to imitate (d) the resource has to be hard to substitute (Dionysus & Arifin, 2020). Human resource management practices or strategies that match these requirements can boost corporate performance and create long-term competitive edge for Hangarau Tech. The company is well positioned to leverage these four factors in order to ensure more effectiveness and overall improved performance.
Three evidence-based recommendations
Employee satisfaction can be described as psychological attitudes on the part of workers toward the duty that they carry out, which has a considerable effect on motivation, which in turn has an effect on productivity and, as a consequence, overall corporate success. Numerous researches have shown that employee motivation affects job happiness, and that the motivation level affects productivity and, as a result, corporate effectiveness.
Employees’ perceptions of their work have a substantial effect on job satisfaction, with monetary pay having a major effect on overall employee contentment (Boon et al., 2019). To improve the current situation at the organization, the HRM can incorporate flexibility within the workplace which will help the employees with work-life balance. An outcome of this recommendation is that there will be, to a certain degree, job satisfaction among employees since a control over the professional life and private life has been associated with job satisfaction.
The second recommendation will be incorporating different compensation strategies other than the direct compensation strategies. The human resource management can implement the intrinsic and indirect compensation strategies in order to keep employees motivated and in turn increase productivity within the organization. As stated earlier some individuals are motivated not just by the extrinsic compensation strategies but also the intrinsic strategies which makes use of recognition, feedback and growth. This will lead workers more towards performance as well as motivation in comparison to the extrinsic.
Lastly, the HRM department can increase the career development opportunities for the employees. As aforementioned, lack of career development has been found to be among the reasons for employee turnover in organizations. The expected results of this strategy is that employees will be more engaged as they will have the desired opportunities for career growth and advancement.
References
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Factors Influencing Chinese Employees Job Engagement
Factors Influencing Chinese Employees’ Job EngagementContents
TOC o “1-3” h z u HYPERLINK l “_Toc376177450” Factors Influencing Chinese Employees’ Job Engagement PAGEREF _Toc376177450 h 1
HYPERLINK l “_Toc376177451” CHAPTER 1: INTRODUCTION PAGEREF _Toc376177451 h 1
HYPERLINK l “_Toc376177452” 1.1 Backgrounds PAGEREF _Toc376177452 h 1
HYPERLINK l “_Toc376177453” 1.2 Problem Statement PAGEREF _Toc376177453 h 3
HYPERLINK l “_Toc376177454” 1.3 Research Aim and Objectives PAGEREF _Toc376177454 h 4
HYPERLINK l “_Toc376177455” 1.4 Structure of the Dissertation PAGEREF _Toc376177455 h 4
HYPERLINK l “_Toc376177456” CHAPTER 2: LITERATURE REVIEW PAGEREF _Toc376177456 h 5
HYPERLINK l “_Toc376177457” 2.1 Introduction PAGEREF _Toc376177457 h 5
HYPERLINK l “_Toc376177458” 2.2 Employee Job Engagement PAGEREF _Toc376177458 h 5
HYPERLINK l “_Toc376177459” 2.3 Impact of Leadership Style on Job Engagement PAGEREF _Toc376177459 h 7
HYPERLINK l “_Toc376177460” 2.4 Impact of Performance Assessment on Job Engagement PAGEREF _Toc376177460 h 10
HYPERLINK l “_Toc376177461” 2.5 Impact of Compensation and Welfare on Job Engagement PAGEREF _Toc376177461 h 13
HYPERLINK l “_Toc376177462” 2.6 Impact of Training and Development on Job Engagement PAGEREF _Toc376177462 h 15
HYPERLINK l “_Toc376177463” 2.7 Summary PAGEREF _Toc376177463 h 17
HYPERLINK l “_Toc376177464” 3.0 CHAPTER 3: METHODOLOGY PAGEREF _Toc376177464 h 19
HYPERLINK l “_Toc376177465” 3.1 Introduction PAGEREF _Toc376177465 h 19
HYPERLINK l “_Toc376177466” 3.2 Research Philosophy PAGEREF _Toc376177466 h 19
HYPERLINK l “_Toc376177467” 3.3 Research Approach PAGEREF _Toc376177467 h 20
HYPERLINK l “_Toc376177468” 3.4 Research Strategy PAGEREF _Toc376177468 h 21
HYPERLINK l “_Toc376177469” 3.4.1 Questionnaire survey PAGEREF _Toc376177469 h 21
HYPERLINK l “_Toc376177470” 3.4.2 Questionnaire Design PAGEREF _Toc376177470 h 22
HYPERLINK l “_Toc376177471” 3.5 Sample and Sampling Techniques PAGEREF _Toc376177471 h 23
HYPERLINK l “_Toc376177472” 3.6 Data Collection PAGEREF _Toc376177472 h 24
HYPERLINK l “_Toc376177473” 3.7 Data Analysis PAGEREF _Toc376177473 h 25
HYPERLINK l “_Toc376177474” 3.8 Validity and Reliability PAGEREF _Toc376177474 h 25
HYPERLINK l “_Toc376177475” 3.9 Research Ethics PAGEREF _Toc376177475 h 26
HYPERLINK l “_Toc376177476” 4.0 CHAPTER FOUR: RESULTS AND DISCUSSION PAGEREF _Toc376177476 h 26
HYPERLINK l “_Toc376177477” 4.1 Overview of the Study Findings PAGEREF _Toc376177477 h 26
HYPERLINK l “_Toc376177478” As the reviewed literature shows, there is no doubt that leadership style, performance assessment, compensation and welfare, and training and development have a direct bearing on employee engagement (see for example BlessingWhite, 2011; Bakker and Later, 2010; Downey, 2008; Kim et al. 2008; Schaufeli et al. 2002; Albrecht, 2010; Appelbaum, 2000; Attridge, 2009; Avery et al., 2007; Avolio et al., 2004; Armstrong and Baron, 2005; Cawley et al., 1998; Denisi and Pritchard, 2006; Nnazir, 2012; Castellano, 2001; Muller and Trannoy, 2011; Robinson et al., 2004; Schaufeli and Bakker, 2004; Brum, 2007; Becker, 1993; Virginia, 2012; Herzberg, 1966; Maslow, 1943). The respondents confirmed this through their comprehensive answer to question 6 of the introductory part of the questionnaire – all the respondents had a clear understanding of what employee engagement entails – they said it entails unrivalled commitment, desire to want to achieve the set personal and organisational goals, desire to work for the current employer for the long term, low burnout levels, and the ability to withstand organisational challenges without desiring to resign. Specifically, this is in line with Attridge (2009) assertion that “the concept of employee work engagement describes the extent to which workers are involved with, committed to, and passionate about their work” (p.1). PAGEREF _Toc376177478 h 26
HYPERLINK l “_Toc376177479” 4.2 Impact of Leadership Style on Employee Engagement PAGEREF _Toc376177479 h 28
HYPERLINK l “_Toc376177480” 5.0 CONCLUSION PAGEREF _Toc376177480 h 28
CHAPTER 1: INTRODUCTION1.1 BackgroundsWith the arrival of new economic times, competition among enterprises is increasingly fierce. In order to keep a strong market footing and sustainable operational improvement, enterprises are gradually realising that talents are the key factors of remaining competitive (Bakker and Laiter, 2010). Today, more and more enterprises have started to conduct researches on job engagement with a view to improving job performance and satisfaction (Kaplan et al., 2009). This has given popularity to the field of positive psychology. This is due to its utility in understanding employee behaviours and how such behaviours can be adjusted to realise high productivity. In recent years, managers and researchers are gradually realising the great impact that positive psychology has on improving business performance (Bakker and Leiter, 2010; Warr and Inceoglu, 2012). Through positive psychology employers are able to rollout new employee welfare programmes to boost employees’ morale and hence their ability to remain focused and committed to organisational goals.
Under the backdrop of this realisation, job engagement as a business management concept has become very popular in China as well as in the western world. Job engagement pays attention to the individual’s positive attitude towards the job. This exerts a significant impact on the business performance and can greatly improve job efficiency and retention rate (Rich, Lepine and Crawford, 2010). Therefore, it is necessary for enterprises to try to improve employees’ job engagement by rolling out programmes that address the individual, group and family needs of the employees.
The concept of employee engagement is multidimensional. Attridge (2009) posits that “the concept of employee work engagement describes the extent to which workers are involved with, committed to, and passionate about their work” (p.1). For Bakker and Leiter (2010), employee engagement is a concept of managing contemporary enterprises that involves increasing the overall involvement of employees towards the organisational goals. Normally, employee engagement is measurable in terms of how employees positively or negatively attach themselves emotionally to workplace processes, people and the organisation in general. However, it should be noted that employee engagement is very different from employee satisfaction or employee motivation but motivation and satisfaction forms part of employee engagement (BlessingWhite, 2011). From these closely related arguments it can be concluded that the concept of employee engagement which is also referred to as worker engagement or even employee job engagement is a set of positive attitudes towards the organisation, its vision, mission and values.
Employee engagement is a function of multiple factors. Conventional knowledge gathered from multiple sources show that employee engagement is normally influenced by factors that have a direct bearing on the employees compensation levels and welfare at the workplace (see for example Bakker and Leiter, 2010; Muller and Trannoy, 2011; Warr and Inceoglu, 2012). This is an indicator that organisations that embrace collectivism and other worthwhile, modern human resource management practices such as share-based employee loyalty programmes strengthen their long term strategic standing while those that do not practice this are at a disadvantage.
Studies carried out by Avolio, Bass, and Walumbwa (2004), Tims and Bakker (2011), Walumbwa and Hartnell (2011), Wang and Chen (2005) all point out to the notion that leadership style has a great bearing on employee engagement. Specifically, these studies believe that transformational leadership style has the greatest impact on employee engagement among all existing leadership styles. This is so because transformational leadership increase employees’ dedication and commitment to their tasks, increases employees’ potency and efficacy, and increases employees’ ability to undertake complex organisational tasks.
Employee engagement is also influenced by performance assessment. According to studies carried out by Denisi and Pritchard (2006) and Muchinsky (2012), employee engagement is influenced by performance assessment related factors such as performance management and target setting. On the other hand, studies carried out by Schraeder, Becton and Portis (2007), Sudarsan (2009) show that employee engagement is influenced by factors related to employee welfare and welfare programmes. Performance appraisal has strong bearing on employee engagement as it gives employees an opportunity to re-examine and align their capabilities with those of the organisation (Armstrong and Baron, 2005; Denisi and Pritchard, 2006; Manasa and Reddy, 2009; Muchinsky, 2012). On their part, Gruman and Saks (2011) and Keeping and Levy (2000) when performed professionally, performance appraisal help to identify training needs, communicate employee skill needs and how best these skills can be acquired. However, Cawley, Keeping and Levy (1998), Keeping and Levy (2000), and Muchinsky (2009) cautions that if performed unprofessionally, performance appraisal can be detrimental to employee engagement as it can kill employee morale and commitment especially when the appraiser is biased.
Lastly, studies carried out by Brum (2007), Becker (1993), Castellano (2001), York (2010) and Truss et al. (2006) argue that employee engagement is influenced by factors related to training and development. These studies argue that employee training and development is the best way of managing human capital. Specifically, these authors argue that when employees are given the necessary knowledge and skills to perform their tasks, they tend to become more happy, resourceful and engaged. Moreover, Truss et al. (2006) posit that employees need to be taken through regular training drills so as to become their overall productivity, an organisational target that is directly impacted by the level of employee engagement. Overall, these studies seem to arrive at the conclusion that employee engagement is a business management idea whose core premise is to make employees more productive.
Employees who are not meaningfully engaged are costly to maintain. A study commissioned by the Gallup Organisation show that employees that are not meaningfully engaged cost between $250 and $350 billion every year to employers in the United States (Attridge, 2009). Another study carried out in the 1990s show that employees that are not connected to their jobs pose a major challenge to CEOs especially when building competitive advantage through cost reduction and sustainable innovation (Wah, 1999). These two studies are reflective of the situation at ground in many organisations across the global divide. For instance, BlessingWhite (2011) argues that studies carried out in the 1990s show that only about one out of every five employees is meaningfully engaged. This converts to about 20 percent of all employees in the world. According to Attridge (2009), a survey whose results were tabled in a 2005 Conference Board showed that about two thirds of employees lack the will power to pursue their employers’ goals; another 40 percent employees lack a genuine connection to their jobs, while another 25 percent only attend their tasks to get paid. This large number of unengaged employees could be responsible for the occasional market crises and losses in the global market especially among large multinational companies with foot prints in major markets that are known to treat their employees differently according t the local labour and employment cultures.
1.2 Problem StatementIn the past decades, job burnout has become a hot topic among western and Far East organisations. Based on survey results published in the Chinese Human Resource Development website, almost 70 percent of Chinese employees possess different levels of job burnout. This is due to the rapid development of the economy and the gradual westernisation of the originally conservative society. Under this background, job engagement becomes important point in human resource management among many organisations.
Many researchers have studied the antecedents of job engagement and factors including leadership style, performance assessment, compensation and welfare and training and development (see for example Hassan and Ahmed, 2011; Albrecht, 2011; Attridge, 2009; Bakker and Leiter, 2010; BlessingWhite, 2010; Earnshaw, 2005, Kaplan et al., 2009; Maslach and Leiter, 2008; O’Neil and Maitland, 2008; Taylor Nelson Sofres, 2011; Warr and Inceoglu, 2012). As expected, majority of these studies address employee engagement from an international perspective while only a few narrow down their scope on Chinese situation. Studies addressing Employee engagement in China include BlessingWhite (2011), Earnshaw (2005), O’Neil and Maitland (2008) and Taylor Nelson Sofres (2011) all suggest that employee engagement in China is at its lowest compared to other countries in the world. For instance, BlessingWhite (2011) argue that employee engagement in China was found to be 52 percent, about 6 points lower than the situation in other parts of the world. BlessingWhite study found that the number of Chinese employees likely to leave their jobs was triple the global benchmark (16 percent against 5 percent). The study also found that employees engage themselves because they like their work while employees disengage themselves from their work because of lack of career opportunities, desire for better compensation, and because they do not like their work.
Despite these cross cutting studies, it is wise to argue that studies on job engagement in China are still in their nascent stages – most of the existing studies do not critically address the major factors that affect employee engagement, they only report employee engagement levels in the country without outlining in deeper detail the reasons behind these levels. Therefore, it is important to carry out a study that critically analyses the major factors that influence employees’ job engagement in China by collecting information from practising human resources management professionals through the China Human Resource Website. In addition, the extremely low employee engagement levels in China are another precursor for more studies to be done on this area. Moreover, with the prevailing uncertainty in the international market and the growing competition in both local and international markets following the country’s entry into the World Trade Organisation, it is only fair to assert that more studies need to be carried out so as to establish the degree which critical factors such as leadership style, performance assessment, compensation and welfare, and training and development impact employee engagement. This will provide useful information that organisations can utilise to improve employees’ job engagement level and the wellbeing of the entire organisation.
1.3 Research Aim and ObjectivesCurrently, in the intense market competition around the global business, talents are the core resources of enterprises, and organisational performance greatly can be determined by the level of these talents engaging in the work. Job engagement is a crucial facet for building competitive advantage among organisations in emerging markets such as China. Therefore, this research is very crucial as it seeks to analyse the factors influencing employees’ job engagement among Chinese organisations. From this overarching aim, the study will also pursue the following specific research objectives:
To explore the impact of leadership style on employees’ job engagement in China.
To investigate the impact of performance assessment on employees’ job engagement in China.
To report the impact of compensation and welfare on employees’ job engagement in China.
To analyse the impact of training and development on employees’ job engagement in China.
1.4 Structure of the DissertationThis dissertation comprises of five chapters. Chapter covers a background of the study, problem statement, research objectives and aims. Chapter two covers a comprehensive review of the existing relevant literature gathered from journal articles, textbooks, and authentic websites. The third chapter will cover the research methodology, sampling, data collection and data analysis methods. The fourth chapter will present a set of findings and discussion of these findings. Lastly, the fifth chapter will wrap up the study and offer recommendations that organisations in China can employ to enhance employees’ job engagement.
CHAPTER 2: LITERATURE REVIEW2.1 Introduction
This chapter provides a rich set of information on job engagement. This is in line with Creswell (2009) who posits that a literature review chapter should cover information related to the study aims and objectives. To this end, chapter is divided into five main sections. Firstly, the chapter covers a comprehensive discussion/definition of job engagement. The second section addresses information related to leadership style and job engagement, the third section will address literature related to performance assessment and job engagement, the fourth section will address literature related to compensation and employee welfare and job engagement while the fifth section will address training and development and job engagement. Lastly, the chapter will be wrapped up with a short but comprehensive summary addressing all the major points reviewed in the chapter.
2.2 Employee Job Engagement Researchers have put forward multiple definitions and dimensions of employee engagement. For instance, Wefald and Downey (2008) defined job engagement as the ability for organisational members to control themselves to integrate with work related roles. From this definition, it can be deduced that self and work role are actually in a dynamic process of transformation. When job engagement is relatively high, individuals will input the energy to role behaviour (self-employment), and express self in role (self-expression). Based on this point, Kahn further divided job engagement to physical, cognitive and emotional dimensions. Kim, Shin and Swanger (2008) redefined job engagement as the omission of burnout. They regarded burnout and engagement as two external points of a three-dimensional continuum and divided job engagement into three dimensions of energy, involvement and efficacy. On their part, Schaufeli et al. (2002) defined the concept of job engagement as a kind of durable perfect state full of positive emotion and motivation characterised by vigour, dedication and absorption. Based on the above discussions, it can be summarised that job engagement refers to the state of mutually satisfying contentment among employees. Employee engagement is a facet of emotional attachment. Studies show that actively engaged employees have strong emotional attachment towards both the organisation and the values it stands for. A 2010 study by BlessngWhite shows that only about 31 percent of all employees are emotionally attached to their jobs (BlessingWhite, 2011). These employees have been noted to work with great passion and are always willing to paint a good image of their organisation – a big chunk of the emotionally engaged employees believe that they have the capacity to make their organisation succeed in the long run (Bakker and Leiter, 2010). Specifically, these employees believe they have a positive impact on the quality of the product an organisation sells to its customers, they can positively influence customer perceptions regarding brand quality and most importantly, they can positively impact on an organisation’s cost reduction efforts. Again, emotionally attached employees will most likely recommend the organisation to their colleagues (Robinson and Hayday, 2003). Overall, emotional attachment has to do with the intrinsically positioned prompts that an organisation extends to its employees such as personal growth and a sense of common purpose and involvement in core organisational processes such as workplace restructuring and change of mission statement. Extrinsic prompts such as pay and rewards too have substantial impacts on emotional engagement but it is intrinsic prompts which have the biggest influence.
Employee engagement entails maximum employee involvement in organisational processes and activities. According to a study carried out by Appelbaum et al (2000) on 10 electronic manufacturers, 17 apparels manufacturers, and 15 steel mills, to compare and modern production systems, it was found that employees become more engaged if they are involved in organisational activities. When employees are involved in making decisions they develop positive attitudes towards the organisation and are easier to manage. To this effect, Attridge (2009) argues that engaged employees are usually passionate about their organisation. Bakker and Leiter (2010) argue that employee engagement is a contemporary business management concept that whose core goal is to generate morale and therefore make employees more involved in workplace activities. Overall, employee engagement is determined by how employees positively or negatively attach themselves emotionally to workplace processes, people and the organisation.
Employee engagement also incorporates commitment involvement and higher organisational performance. Employee engagement is a function of many performance related constructs which all narrow down to employee involvement and performance (Attridge, 2009; Bakker and Leiter, 2010). According a study carried out by Lockwood (2007), engaged employees were found to be 87 percent less likely to quit their current jobs, perform 20 percent better, are committed to the organisation. Lockwood also agrees that engaged employees are likely to serve customers well and therefore earn the organisation more revenue. Moreover, engaged employees are less likely to be involved in workplace accidents as they command a better understanding of organisational processes. This helps to reduce operation costs and therefore freeing the much needed funds for use in income-generating activities. Again, two studies one involving over 3500 employees from 49 organisations and the other one involving over 4800 employees from 92 organisations in the life insurance industry found that when employees are constantly involved in running the organisations, their morale increases and hence their performance (Konrad, 2006). Overall, these findings lead to the conclusion that organisations with committed and engaged employees outperform their colleagues whose employees were less engaged.
2.3 Impact of Leadership Style on Job Engagement
Leadership style refers to the different characters expressed by leadership in the long-term operations process of an enterprise. The leadership style varies a lot from one enterprise to another. Mainly, there are three typical kinds of leadership styles including autocratic leadership style, democratic leadership style and laissez-faire leadership style (Albrecht, 2011; Wang and Chen, 2005). Democratic leadership style can further be broken down into transformational and transactional leadership facets (Vugt et al., 2004). Overall, a leadership style shapes the employer-employee relationships and makes the workplace more accommodative.
Trust is an important facet of democratic leadership styles as shown by a survey conducted by BlessingWhite (2011) in China – trust creates a sense of entitlement and belonging among employees (Tims, Bakker and Xanthopoulou, 2011). BlessingWhite (2011) found that most of employees would like to have more chances to engage in their jobs because they considered that leadership is an important factor in employees’ job engagement. Further the study found that about two thirds of all employees working for various organisations in China reported to have trust in their organisation’s leadership. This was the second highest show of trust on organisational leadership after India (with 75 percent) and ahead of Southeast Asia (with 62 percent), Australia/New Zealand (with 55 percent), North America (52 percent), and UK/Europe (50 percent). Further, the study found that 3 in every 4 Chinese employees have trust in their managers, an almost similar trend with the situation in other major markets of the world. On their part, Ludwig and Frazier (2012) found that when employees can connect with the destiny and purpose of enterprises, they will possess high level of engagement with high aspirations. Through conducting research on ten thousand employees in Great Britain, Institute of Employment Studies found that a sense of being involved and valued is a significant driver of job engagement. It has been achieved that leadership qualities can help organisations achieve high level of engagement (Markos and Sridevi, 2010). It is arguable that leadership and management styles have a great impact on employee engagement because employees tend to trust leaders and managers are capable of setting a good organisational culture and inspiring them to greater heights.
Leadership styles that enhance workplace interpersonal relationships have a greater impact on job engagement than others. Tims et al. (2011) investigated whether supervisor’s leadership style has a direct influence on employee work engagement and found that transformational leadership that puts in place strong workplace relationships boosts employee engagement. Bass (1985) found that transactional leadership and laissez-faire leadership styles have a lesser impact on employee engagement compared to transformational leadership. The author argues that this is because the former two leadership styles lack motivational and inspirational appeal and therefore cannot impact on employee engagement as transformational leadership does. This is because transformational leadership provides individual support for employees. These findings are supported by Vugt et al (2004) who found that employees are more likely to leave groups headed by transactional and laissez-faire leaders and join groups headed by transformational leaders. Vugt argues employees are discouraged by the limited control they enjoy when it comes to decision making processes when in transactional leadership groups and lack the drive to invest more efforts in their tasks when in laissez-faire leadership groups. These findings are supported by Skogstaad et al (2007) that leadership styles that does not support to employees normally reduce employee morale. Overall, transformational leadership transforms employees’ norms and values, inspires employees and makes them more happy and useful to the organisation. This in turn boosts their job engagement.
Leadership styles that address employees’ interests increase job engagement. Since managers are known to exercise a hard style of leadership where employees are assumed to be knowledgeable enough as to undertake their tasks without guidance or motivation, it is arguable that the gist of leadership in an organisation is to create a soft approach for achieving the set organisational goals (see for example Tims et al, 2010). Evidence shows that employees tend to become more committed to their tasks if the top management rolls out programmes that improve their overall welfare such as programmes aimed at covering their medical insurances expenses or aligning employees’ interests with organisational interests. Transformational leadership for instance, inspires employees, influences employees positively, takes into consideration employees’ individual needs, and stimulates employees’ intellectual faculties (Tims and Bakker, 2011). Inspiration takes the form of objective communication that is appealing in nature while idealised influence take the form of convincing employees to believe that group interests are more important than individual interests. Together, idealised influence and inspiration constitutes what is generally referred to as charismatic leadership style as demonstrated by renowned leaders such as the late Steve Jobs or Apple Computers (Warr and Inceoglu, 2012). On the other hand, individual consideration acknowledging employees career growth needs and providing tailor made programmes that fulfil these needs (Avolio, Bass, and Walumbwa, 2004). Lastly, intellectual stimulation has to do with the constant talks that managers hold with employees to convince them to practice a multidimensional approach to workplace challenges. This involves critical thinking and can only be made possible if employees are more engaged with their tasks (Avery, McKay, and Wilson, 2007). When followers are challenged, involved, share the vision of the leader they tend to drop their own personal visions and work towards the collective organisational vision.
Communication, as a facet of transformational leadership style has a great impact on employee engagement. According to a series of studies conducted by Watson Wyatt Worldwide between 2002 and 2006 among a wide range of enterprises to test the impact of communication-based leadership style on employee engagement, firms that communicate regularly with their employees have a chance of improving employee engagement up to four times more compared to their counterparts who do not communicate to their employees regularly. One of these series of studies indicated companies that practise corporate communication realised a 91 percent total return to shareholders, a facet for measuring the level of employee engagement in public owned enterprises. This was phenomenal improvement compared to only 62 percent return to shareholders for companies that did not embrace corporate communication. These studies also found a correlation between corporate communication and market value improvement of up to 16 percent for the observed companies (Watson Wyatt Worldwide, 2007). Another study conducted by Mercer in 2002 dubbed “People at Work Survey” supports these later findings. Based on more than 2500 persons working for United States based companies, the study found that the effectiveness of workplace communication improved the level of employee engagement as it boosted employee satisfaction, employee commitment, and employee loyalty. Specifically, the study found that when senior management communicated a company’s mission and vision to the junior employees, a large section of the employees became more confident and focused to their specific organisational responsibilities up to a margin of 39 percent compared to a margin of 7 percent when such communication was absent (Attridge, 2009). Overall, these studies seem to support the notion that interactive and individualised leadership styles increases the level of certainty among the employees, increases employees knowledge of organisational values and therefore boosts employee engagement in the long run.
A transformational leader creates a good environment that influences employee engagement. A study carried out by Tuckey et al (2009) found that apart from instilling worthwhile states among employees, leaders boost employee engagement by creating friendly environment that stimulates their cognitive faculties. Tuckey et al studied 84 Australian fire fighters and found that their empowering leadership style was responsible for increasing the number of voluntary workforce. According to Albrecht (2010), empowering leadership style is characterised by sharing an organisation’s vision with the employees, showing how tasks should be carried out, involving employees during critical decision making processes, and offering regular coaching to employees. To this end, Tuckey et al
Human Resource Management in Vigo County Tax and Municipal office
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Human Resource Management in Vigo County Tax and Municipal office
In every organization or institution, some employees perform duties assigned to them by the managers and other key stakeholders. In the management system, their Human resource department ensures that a qualified workforce is available for the company. Human resource managers play an essential role in business institutions. They are responsible for controlling the force by ensuring that enough employees are readily available for their different parts when needed. There are significant roles which human resource personnel perform, which are explained together with their importance while relating with the case of Vigo County Tax and Municipal office.
Recruitment and selection are roles played by human resource management. The personnel involved in the field are responsible for carrying out a long process that starts from identifying the need for a part until a qualified individual is assigned to the position. Lack of enough posts in a department draws the attention of human resource management. The junior employees in the sector spot such a problem then report to the top management for approval in selecting and availing a quality workforce to the organization (Armstrong, 70). The human resource manager is also in charge of performing all the selection activities, which involve advertisement, setting up budgets and salaries for new employees, and performing interviews and other orientation services for the new worker. Among human resource management roles, selection and recruitment are considered the most sensitive function as it defines how the whole organization will run. Getting the best positions for activities in the organization means that a peaceful and productive environment is guaranteed; hence all workers will socialize with no disagreements.
After the selection and appointment of the personnel, human resource management is also responsible for offering training to the new employees, where the person should guide the recruit on their roles in the business organization so that they can work with their fellow employees with unity (Bratton, Jeff, 12). The workforce is the vital tool in business that determines whether the institution’s activities will succeed or fail. Training the workforce is essential for the organization as it ensures that the employees now have the needed skills in doing their activities in the organization. Training acts as the channel into which development is introduced in the organization as it motivates the employees to work better and under minimum supervision. Training them increases their confidence in doing their duties; thus, this is an advantage to the organization as they get excellent services from the employee hence boosting productivity.
During transacting businesses or production in a company, the management and human resource management should team up to ensure that they closely investigate how each of the employees performs their duties, thus ensuring that the organization sets the employee fulfils goals. Performance management is the process by which the top management conducts annual or semi-annual reviews of its personnel to ensure that each is acting by the contract they signed (Lussier, John, 45). Employee relation is another idea in the business organization which managers put into consideration. When workers are in disagreement, the production process starts to fail while the expected results after an inevitable period decline indefinitely. Human resource management’s role is to ensure that problems are resolved peacefully in the business organization for activities to go like planned in the institution. When there is peaceful coordination in the organization, productivity levels rise where the activities take a shorter time to be performed, unlike when there is a disagreement.
Every company has laws and policies that govern and control how activities occur in the organization (Deb, 784). The role of human resource personnel is to be familiar with all the policies within the organization, make sure that all of them are strictly followed for the benefit of the firm. Compensation is another role associated with human resource management, where the person in the sector should ensure that each worker gets paid according to the agreement during recruitment. Work leaves, pension and other allowances are also categorized under-compensation, where human resource management is accountable for preparing those salaries and remuneration. Human resource management is also supposed to administer the whole firm. They should keep good records of all employees, their data, and control of systems that ensure productivity in the company.
Vigo County Tax and Municipal Services offices face a case where some of its employees disagree. Human resource management is supposed to intervene and ensure that peace is resolved between the two parties. Basing our argument on the roles of human resource personnel, there are specific guidelines that the management should observe to ensure that they have corrected the misunderstanding for higher productivity (Armstrong, 68). On selection and recruitment, the office should think of employing more employees, who should be trained and skilled to take the position of receptionists, database managers and information clerks. The three parties feel overworked, and they complain that they are doing tasks that do not belong to them. Training is also essential in Vigo municipality, where the recruits should be guided on the areas where more force is needed. Compensation is also vital to the county office as the management should consider increasing the salaries of receptionists, database managers and clerks. It is the role of human resource management to ensure that all laws of the Vigo County office are strictly followed, hence ensuring that the relationship between the employees is regulated and maintained.
Certain behaviours occur in the Vigo county municipal offices, which determine the relationship between the employees and how things are run in the management. Most of the employees have embraced the culture of complaining to the top management about being overworked or given tasks that do not match their qualifications (Bratton, Jeff, 6). The office administration and human resource management lack a rigid plan on how to execute some duties in the firm; thus, employees end up conflicting with one another on petty issues. There seems to be no respect and coordination between the receptionists, database administrators, and information clerks, all of whom blame one another for unfinished tasks.
The three positions in the office, receptionists, database administrators, and clerks, differ based on how the employees involved do their duties. Each is assigned a critical responsibility to do in the administration (Lussier, John, 45). Receptionists, for example, earn an annual basic salary of around thirty-one thousand dollars, information clerks earn over thirty-six thousand dollars. In comparison, database managers earn a salary of over ninety-eight thousand dollars. Among the three, information clerks are the only members who require job training, where the process is defined as long and complex. Both receptionists and information clerks have a slow job run of four and two per cent, respectively, unlike database administrators, who have a faster run of eight per cent. On similarities, no work experience is needed for the three posts, where any trained employee who is qualified can work efficiently on the tasks in that sector. Information clerks and receptionists require special job training before they work on their posts, unlike database administrators who need no training before starting their work.
An occupation informational network is an online database that involves providing different definitions of occupations available in the market (Deb, 784). The online database contains guidelines on how job seekers, students, and other interested businesspeople decide areas of work and understand the market in a better way. The online network is based in the United States of America, where its main objective is to offer free services to the jobless and businesses on the market’s current behaviour and where to work. Lastly, human resource management is involved in the online network in one way or another. It is the role of the human resource personnel to advertise on functions that require employees in an organization.
Works Cited
Lussier, Robert N., and John R. Hendon. Human resource management: Functions, applications, and skill development. Sage publications, 2017: 45
Bratton, John, and Jeff Gold. Human resource management: theory and practice. Palgrave, 2017: 5-15
Deb, Tapomoy. A strategic approach to human resource management. Atlantic Publishers & Dist, 2006: 784
Armstrong, Michael. Human resource management practice. Kogan page limited, 2020: 67-78
