Presentation on theme: "MRS. TEJAL PATEL ASSI. PROF. C.K.PITHAWALLA INSTITUTE OF MANAGEMENT,SURAT RESEARCH AREA: EMPLOYEE ENGAGEMENT INDUSTRY: PHARMACEUTICAL."— Presentation transcript:
MRS. TEJAL PATEL ASSI. PROF. C.K.PITHAWALLA INSTITUTE OF MANAGEMENT,SURAT RESEARCH AREA: EMPLOYEE ENGAGEMENT INDUSTRY: PHARMACEUTICAL
“ A STUDY ON EMPLOYEE ENGAGEMENT AND IDENTIFYING PREDICTORS FOR EMPLOYEE ENGAGEMENT IN PHARMACEUTICAL INDUSTRY OF SOUTH GUJARAT REGION”
Importance/Rationale of proposed Investigation After IT and BPO, it is now the pharmaceutical sector that is facing the issue of high attrition rates. For most HR managers, employee retention is the biggest challenge. Talent or human resource is a major asset for any company. Company invest high amount of money for their recruitment, selection and training and what happens to company if these talents or employees leave the organization in short while seeking new opportunities.
Pharmaceutical industry is most intellectual staff to work, though it has a main issue of leaving the job by employees in very short period. Indian pharmaceutical industry is one of the fastest growing knowledge based sector with annual attrition rate of around 30-35% compared to the global pharmaceutical attrition rate of 10-12% per annum.
Review of Literature Employee Engagement: Kahn (1990), who was one of the early academic researchers to define the concept of employee engagement, viewed engagement as the ‘‘harnessing of organizational members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances’’ (p. 694). More generally, engagement means to be psychologically present when occupying and performing an organizational role (Kahn, 1990, 1992). When people are psychologically present they feel and are attentive, connected, integrated, and focused in their role performances (Kahn, 1992). People vary in the extent to which they draw on themselves in the performance of their roles or what Kahn (1990) refers to as “self-in- role.” Thus, when people are engaged they keep their selves within the role they are performing.
A recently published paper defined and measured employee engagement as satisfaction, commitment and discretionary effort (Fine, Horowitz, Weigler, & Basis, 2010). Advances in understanding employee engagement will be difficult if not impossible to achieve until a consensus is reached on a definition and measurement of the construct. “Employee Engagement is a measurable degree of an employee’s positive or negative emotional attachment to his job, colleagues and organization which profoundly influences his willingness to learn and perform at work.” Schmidt et al (1993) defines employee engagement as a modernized version of job satisfaction, which is basically an employee’s involvement with, commitment to and satisfaction with work. According to the Hay Group, engagement is comprised of two components: Commitment affective attachment to and intention to remain with an organization and Discretionary Effort the willingness to go above and beyond formal job requirements.
Engagement is most closely associated with the existing construction of job involvement (Brown 1996) and flow (Csikszentmihalyi, 1990). Additionally, the presence of employee engagement might also influence various outcome variables (Harter et al., 2002). Two outcome variables were identified as having a potential relation with employee engagement (Harter at al, 2002; Lloyd, 2008; Saks, 2006). These variables were discretionary effort and intention to turnover. The presence of employee engagement was thought to result in increased discretionary effort and decreased turnover (Lockwood, 2007; Meere, 2005; Saks, 2006; Towers Perrin, 2007).
Organizations are focusing on employee engagement as a promising strategy to increase retention and improve productivity (Lockwood, 2007). Macey and Schneider (2008) suggested that attention to employee engagement is only now moving from the practitioner to the academic literature. While human resource researchers and practitioners are being asked to play an increased role in the development of engagement-enhancing strategies, and employee engagement is being included in organizational strategic planning, little research about how to effectively develop employee engagement exists.
Research gaps identified in the proposed field of investigation: Ranbaxy Laboratories Limited, which is one of the largest and leading chains in the pharmaceutical laboratories with highest turnover according to the preliminary indices, (Delaney and Huselid, 1996) its recent employee satisfaction survey of 2009 indicated that 50% of the employees felt they would not be in the company for the next two years and 69% felt their intention to quit is influenced by management not peers. (Dr. Alaknanda Dhotre, 2010) The pharmaceutical industry is growing exponentially; there is a constant thirst for the best and the brightest of employees. After information technology, the pharmaceuticals industry is grappling with the highest level of attrition rate of 30 to 35 per cent, according to a recent survey of Indian pharmaceutical companies by Interlink Marketing Consultancy.
A useful comparison between a range of demographic segment, from job level (senior executive, director/manager, supervisor/foreman, specialist/professional, non-management salaried and non-management hourly) to industry category (non- profit, high tech, heavy manufacturing, insurance, pharmaceuticals, hospitals and finance/banking) was carried out by researchers at Towers Perrin (2003), who found a pattern across the segments. Each group had only a small group of highly engaged respondents, a slightly larger disengagement group with the majority in the moderately engaged group.
Employee engagement Predictors in service industry: In the only study to empirically test Kahn’s (1990) model, May et al (2004) found that meaningfulness, safety, and availability were significantly related to engagement. They also found job enrichment and role fit to be positive predictors of meaningfulness; rewarding coworker and supportive supervisor relations were positive predictors of safety, while adherence to co-worker norms and self-consciousness were negative predictors. Luthans and Peterson (2001, p.376) assert that the ‘soft’ human-oriented measures such as employee attitudes, traits, emotions and perceptions are being recognised as strong predictors of employee behavior and performance. From all the sources researched, it becomes evident that many of the constructs associated with employee engagement have been researched. Researchers have found a positive relationship between employee cognitive attitudes and performance (Petty, McGee and Cavander, 1984, p.712), personality traits and job performance (Barrick and Mount, 1991, p.6), and emotions and favourable job outcomes (Staw, Sutton and Pelled, 1994, p.51). Two personality traits are significant predictors of engagement: extraversion and consolidation.
The Corporate Leadership Council (CLC) survey revealed that employee engagement leads to 57% improvement in discretionary efforts (Corporate Leadership Council, 2004). The CLC contends that emotional engagement has four times the power to affect performance as compared to rational commitment. Employee welfare, Empowerment, Growth and Interpersonal relationships as the critical predictors i.e. those survey items which have major impact on engagement. The predictors of Employee Engagement are highly organization specific. (Vijaya Mani, 2011) Perceived Supervisor Support is also likely to be an important predictor of employee engagement. In fact, a lack of support from supervisors has been found to be an especially important factor linked to burnout (Maslach et al., 2001). Michael B. Shuck,2010) job fit, affective commitment, and psychological climate were all significantly related to employee engagement and that employee engagement was significantly related to both discretionary effort and intention to turnover.
Need and Importance of Research Problem: Major HR issues is facing in Pharmaceuticals Industry (Michael Steiner;David H. Bugen;Brian Kazanchy;William T. Knox;Margaret V.Prentice; Lauren S. Goldfarb, 2007) Everyone working in the pharmaceutical industry cannot help but notice that it is undergoing a vigorous evolution. Much has been written about how pharmaceutical companies will need to change the way they do business in order to remain profi table in a new and unfamiliar competitive landscape.
Industry sources point out those pharmaceutical companies must not only attract talent but also foster an environment in which their clever people are inspired to achieve their fullest potential in a way that produces wealth and value for all stakeholders. When asked about ranking the importance of a number of HR issues between now and 2015, in a survey involving 360 senior executives of the life science industry, those high-level managers identified skill shortages as the number 1 risk they are facing. It is increasing obvious that pharmaceutical conies need to develop the necessary skills and talents to cope with the changes and new models. It is still time to change, train and develop our people. In India, we have a huge supply of manpower in the management pool, but are sadly deficient in people management expertise. In this industry high churn other than the natural rate of attrition is mainly due to poaching, burnout, high stress at work and inadequate payment
Objective of the Proposed Study: 1. To identify the important of predictors for employee engagement in Pharma industry 2. To evaluate the relationship between predictors on outcome of human retention 3. To evaluate the practices of employee engagement in Pharmaceutical Industry 4. To evaluate the proposed model of employee engagement in Pharmaceutical Industry
Research Methodology: The purpose of this study is to examine practices and identifying predictor of engagement for employees in a Pharmaceutical industry located in South Gujarat. However, empirical studies on employee engagement are limited and the literature is unclear as to which variables are the strongest predictors. Population as I choose operational and Decision level employees and workers and executives from random selection of pharmaceutical company. Here no identified studies have examined employees specifically in the human service fields such as social work, psychology, or rehabilitation. Therefore, variables for this study are chosen by reviewing the literature data that are available regarding employee engagement.
Research Design: A research design is exploratory research and Descriptive research. Sample Design: Sample Size: For employees (operational level) segment: 400 For Managers (Decision level) segment: 250 Sampling procedure: Two step Purposive sampling Sample Unit: Workers and Executives of Pharmaceutical companies
Primary Data: (i) Structured Questionnaire ( Separate for both Employee and Managers) (ii) Depth personal interview and discussion Secondary Data: Reference books, published articles in journals, magazines and other published and unpublished sources, government publications, electronic sources, electronic databases and world wide web facilities. Tools and Techniques of Research: A questionnaire was designed to grade the responses of the workers and executives based on the degree of their agreement. In designing questionnaire 5 point likert scale (strongly disagree to strongly agree) was used to reduce the statistical problems of extreme skewness.
Reliability and Validity: Statistical techniques will be used to analyze the collected data. Software packages like Microsoft Excel and statistical software (like SPSS, SPSS- AMOS pack) will be used for data analysis. The collected data will analyze by preparing graphs (like bar charts, pie charts) and understanding the trends depict by answer provide in the questionnaire and inference will be drawn on the data collected
References: Agarwala, T. (2003). ‘Innovative Human Resources Practices and Organisational Commitment: An Empirical Investigation’, International Journal of Human Resource Management, 14(2): 175–97. Allport, G. W. (1947). ‘The Psychology of participation.’ Psychological Review, 52, Allport, G. W. (1961). ‘Pattern and growth in personality.’ New York: Holt, Rinehart and Winston. and Organizational Psychology, 1, Anedrew Ballentine, Nora McKenzie. Allen Wysocki., Karl Kapner (2003) The role of monetary and non monetary incentives in workplace as influenced by career stage 1, University of Florida, Publication of Department of Food and Resources Economics, Institute of Food and Agricultural Sciences. AstraZeneca. (2009). ‘Safety, health & wellbeing.’ Retrieved February 28, 2009, from Bandura, A. (1977), ‘Self--efficacy: Toward a Unifying Theory of Behavioural Change", in Schyns, B. & von Collani, G. (2002), 'A New Occupational Self- efficacy Scale and Its Relation to Personality Constructs and Organizational Variables," European Journal of Work and Organizational Psychology, 11 (2): Barrick, M.R. & Mount, M.K. (1991). ‘The big five personality dimensions and job performance: a meta- analysis.’ Personnel Psychology, Spring, pp Binks, S.P. (2003). ‘Occupational toxicology and the control of exposure to pharmaceutical agents at work.’ Occupational Medicine, 53,
Brown, S. P., & Leigh, T. W. (1996). ‘A new look at psychological climate and its relationship to job involvement, effort, and performance.’ Journal of Applied Psychology, 81, Buckingham, M. & C. Coffman (1999). ‘First, break all the rules: what the world’s greatest managers do differently’. New York, NY: Simon & Shuster. Cattell, R. B. (1973). ‘Personality and mood by questionnaire.’ New York: Jossey Bass. Chakrabarty S, Oubre DT, Brown G (2008). The impact of supervisory adaptive selling and supervisory feedback on salesperson performance. Ind. Mark. Manage., 37: Corporate Leadership Council (2004). ‘Driving Performance and Retention through Diamond, M.A. and Allcorn, S. (1985) ‘Psychological dimensions of role use in bureaucratic organisations’, in Kahn, W.A. (1990) ‘Psychological conditions of personal engagement and disengagement at work’, Academy of Management Journal, Vol 33, pp Csikszentmihalyi, M. (2003). ‘Good business: Leadership, flow, and the making of meaning.’ New York: Viking Penguin. Development Dimensions International (DDI) (2005). ‘Driving Employee Engagement’, DDI White Paper. Available at (Accessed on 28 August 2009). Development Dimensions International. (2005). (Predicting Employee Engagement MRKSRR Development Dimensions International, Inc., MMV. [Online] Available:www.ddiworld.com (October 30,2008) Dr. Dhotre. A. (2009). ‘Attrition in pharmaceutica Industry: human resource Management’s role and strategy.’ International Research Journal, August 2010 ISSN RNI: RAJBIL 2009/30097 VOL I *ISSUE 11 GlaxoSmithKlein (GSK). (2008a). Answering the questions that matter. Corporate responsibility report Brentford, Middlesex: GlaxoSmithKlein. Retrieved February 9, 2009, from Report-2007.pdfwww.gsk.com/responsibility/cr-review-2007/downloads/CR- Report-2007.pdf Golden TD, Veiga JF (2008). ‘The impact of superior–subordinate relationships on the commitment, job satisfaction, and performance of virtual workers.’ Leadersh. Q., 19:
Hackman, J. R. & Oldham, G. R. (1980), Work Redesign. Reading, MA: Addison-Wesley. 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. Journal of Applied Psychology, 87, Harter, J. K., Schmidt, F. L., & Keyes, C. L. M. (2003). Wellbeing the workplace and its relationship to business outcomes: A review of the Gallup studies. In C. L. Keyes & J. Haidt (Eds.), Flourishing: The positive person and the good life (pp ). Washington, DC: American Psychological Association. Hong L, While AE, Barriball KL (2005). Job satisfaction among nurses: a literature review. Int. J. Nurs. Stud., 42: Huselid, M. A., & Delaney, J. T. (1996). ‘The Impact of Human Resource Management on Perceptions Of Organisational Performance’. Academy of Management Journal, 39(4), Huselid, M.A. (1995) ‘The Impact of Human Resource Management Practices On Turnover, Productivity, And Corporate Financial Performance’, Academy of Management Journal, 3(38): 635–672. Kahn, W. (1990). ‘Psychological conditions of personal engagement and disengagement at work.’ Academy of Management Journal, 33, Kahn, W. (1992). ‘To be fully there: Psychological presence at work.’ Human Relations, 45, Kanungo R (1982). ‘Measurement of job and work involvement’, J. Appl. Psychol. 67: Kassahun, Tilaye. (2005). ‘Level of Organisational Commitment: Its Correlates and Predictors’, IndianJournal of Industrial Relations, 41 (1): 29–63. Kim WG, Leong JK, Lee Y (2005). ‘Effect of service orientation on job satisfaction, organizational commitment, and intention of leaving in a casual dining chain restaurant.’ Hosp. Manage., 24:
Levy, B. & Wegman, D. (2000). ‘Occupational health. Recognizing and preventing work-related disease and injury (4th ed.)’. Philadelphia-New York: Lippincott Williams & Wilkins. Lloyd, R. (2008). ‘Discretionary effort and the performance domain.’ The Australian and New Zealand Journal of Organizational Psychology, 1, Lockwood, N. R. (2007). ‘Leveraging employee engagement for a competitive advantage.’ Luthans, F. & Peterson, S.J. (2001). ‘Employee engagement and manager self- efficacy. Journal of management development, 21 (5), pp Luthans, F., & Peterson, S. J. (2002). ‘Employee engagement and manager self efficacy: implications for managerial effectiveness and development.’ Journal of Management Development, 21 (5), pp Macey, W. H., & Schneider, B. (2008). ‘The meaning of employee engagement.’ Industrial and Organizational Psychology, 1, Macey, W. H., Schneider, B., Barbera, K. M., and Young, S. A. (2009), ‘Employee engagement: Tools for analysis, practice, and competitive advantage.’ Wiley- Blackwell, Malden, MA. Mamta Mohapatra, Baldev R. Sharma(2010) ‘Study of Employee Engagement and its Predictors in an Indian Public Sector Undertaking’ Global business review, 11:2 (2010): 281–301Management Decision, 28, 6. Maslach, C. Schaufelli, W.B. and Leiter, M.P. (2001) ‘Job burnout.’, Annual Review of Psychology, Vol 52, pp
Masson, R. C., Royal, M. A., Agnew, T. G., & Fine, S. (2008). Leveraging employee engagement: The practical implications. Industrial and Organizational Psychology Mathew H.( 1983) Developing employment package attracting and retaining best employees, May, D.R. Gilson, R.L. and 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 Organisational Psychology, Vol 77, pp Meyer JP, Allen NJ (1991). ‘A three component conceptualization of organizational commitment.’ Hum. Resour. Manage. Rev., 1: Michael B. Shuck. (2010) ‘Employee Engagement: An Examination of Antecedent and Outcome Variables.’ Florida International University, 103. Mohapatra, Mamta and Baldev R. Sharma. (2008). ‘Drivers of Organisational Commitment among Managers of Industrial Organisations: A Case Study’, Global Business Review, 9(1): 51–63. Mone, E. M., & London, M. (2010). Employee engagement through effective performance management: A practical guide for managers. New York: Routledge. Nair M.R.R. and Rao T.V. (1991). ‘Excellence through HRD.’, New Delhi, Tata McGraw Hill. Perrin T. (2003). Working Today: Understanding What Drives Employee Engagement The 2003 Towers Perrin Petty, M.M., McGee, G.W. & Cavander, J.W. (1984). ‘A meta-analysis of the relationships between individual job satisfaction and individual performance. Academy of Management Review. Vol.9, pp Saks, A. M. (2006). ‘Antecedents and consequences of employee engagement.’ Journal of Managerial Psychology, 21, Scanduraa TA, Williams EA (2004). ‘Mentoring and transformational leadership: The role of supervisory career mentoring.’ J. Vocat. Behav., 65: Schaufeli, W. B., Salanova, M., Gonzalez-Roma, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two sample confirmatory factor analytic approach. Journal of Happiness Studies, 3,
Sharma A.M. (1991). ‘Understanding Wage System.’, New Delhi, Himalaya Publications. Sharma, Baldev R. and Mamta Mohapatra. (2009). ‘Personal and Situational Factors as Predictors of Managerial Motivation’, Indian Journal of Industrial Relations, 44(3): 426–40. Sharma, Baldev R. and Rama J. Joshi. (2001). ‘Determinants of Organisational Commitment in a Manufacturing Organisation in the Private Sector’, Indian Journal of Industrial Relations, 37(2): 199–216. Sharma, Baldev R. and Shailendra Singh. (1991). ‘Determinants of Organisational Commitment’, Management and Labour Studies, 16(2): 63–75. Sharma, M.P ‘Organisational Commitment and its Determinants’, Indian Journal of Industrial Relations, 33(2): 193– 210. Smith, P.C., Kendall, L.M. &Hulin, C.L. (1969). ‘The measurement of satisfaction in work and Retirement.’ Chicago: Rand Mcnally. Staw, B.M., Sutton, R.T. & Pelled, L.H. (1994). ‘Employee positive emotions and favourable outcomes of the workplace.’ Organisation Science, Vol.5, pp Teichman, R.F., Fleming Fallon, L., & Brandt-Rauf, P.W. (1988). ‘Health effects on workers in the pharmaceutical industry: A review’. Journal of the Society of Occupational Medicine, 38, The Gallup Organization (2004). Quoted in Crabtree, S (2004) Getting personnel in the work place – Are negative relationships squelching productivity in your company? Gallup Management Journal, June. Retrieved from com/admin/pdf/Gallop_Committment_Results.pdf, accessed during April 2011.http://www.workliferesources Towers Perrin talent report. (2003). ‘Understanding what drives employee engagement.’ U.S. Report. Towers Perrin. (2003). ‘Employees have strong emotional connection to work.’ The Galt Globa review. (accessed 27 October 2003) Vijaya Mani. (2011). ‘Analysis of Employee Engagement and its Predictors.’. International Journal of Human Resource Studies ISSN , Vol. 1, No. 2 Willem A, Buelens M, Jonghe ID (2007). ‘Impact of organizational structure on nurses’ job satisfaction: A questionnaire survey. Int. J.Nurs. Stud., 44: Wollard, K. & Shuck, B. (2011).Antecedents of employee engagement: A structured review of literature. Advances in Developing Human Resources, 13(4), Wright, P. M., McMahan, G. C. & McWilliams, A. (1994). Human resources and sustained competitive advantage: A resource-based perspective. International Journal of Human Resource Management, 5(2), 301–326. Wright, P. M., Gardner, T. M. & Moyniham, L. M. (2003). The impact of HR practices on the performance of business units. Human Resource Management Journal, 13(3), Yang J (2009). ‘Antecedents and consequences of job satisfaction in the hotel industry.’ Jen-Te Int. J. Hosp. Manage. Zigarmi, D., Nimon, K., Houson, D., Witt, D., & Diehl, J. (2009). ‘Beyond engagement:Toward a framework and operational definition for employee work passion.’ Human Resource Development Review, 8,