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MRS. TEJAL PATEL ASSI. PROF. C.K.PITHAWALLA INSTITUTE OF MANAGEMENT,SURAT RESEARCH AREA: EMPLOYEE ENGAGEMENT INDUSTRY: PHARMACEUTICAL.

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Presentation on theme: "MRS. TEJAL PATEL ASSI. PROF. C.K.PITHAWALLA INSTITUTE OF MANAGEMENT,SURAT RESEARCH AREA: EMPLOYEE ENGAGEMENT INDUSTRY: PHARMACEUTICAL."— Presentation transcript:

1 MRS. TEJAL PATEL ASSI. PROF. C.K.PITHAWALLA INSTITUTE OF MANAGEMENT,SURAT RESEARCH AREA: EMPLOYEE ENGAGEMENT INDUSTRY: PHARMACEUTICAL

2 “ A STUDY ON EMPLOYEE ENGAGEMENT AND IDENTIFYING PREDICTORS FOR EMPLOYEE ENGAGEMENT IN PHARMACEUTICAL INDUSTRY OF SOUTH GUJARAT REGION”

3 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.

4  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.

5 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.

6  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.

7  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).

8  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.

9 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.

10  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.

11 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.

12  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.

13 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.

14 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

15 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

16 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.

17  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

18  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.

19 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

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