ACKNOWLEDGEMENT First,I would like to thank my project guide mrs.Naga sravya for giving me the opportunity to work on this project. her constant support & guidance has been invaluable in shaping up my project. My sincere gratitude goes to entire HR team who were always there to listen and advice. Their creative and valuable inputs at each & every stage of the project were a major key factor that helped me immensely to complete this project. I would also like to thank them for their patience and constant encouragement that made me to strive harder and do my best. I am extremely greatful to my guide sajid & nazima(guides at organization)& professors at my college for their support and Motivation & helping whenever the need arose. Lastly I would thank those people who directly or indirectly helped in the Successful completion of the project.
P.Sree Anusha Project trainee Ramky groups
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Abstract Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. Employee engagement is an antecedent of job involvement and what should company do to make the employees engaged. The paper also looks at the Gallup 12 point questionnaire, question survey that identifies strong feelings of employee engagement and the steps which show show to drive an engaged employee.
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INDEX
CONTENTS
Page No
1.
List of tables
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2.
Introduction
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3.
Review of literature
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4.
Organization profile
54
5.
Data analysis & interpretation
70
6.
Findings,suggestions & conclusions
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7.
Questionniers
96
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CHAPTER-1 INTRODUCTION
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Introduction Employee engagement has an emerged as critical drivers of business success in today’s competitive marketplace. Further employee engagement can be a deciding factor in organizational success. Not does engagement have the potential to significantly affect employee retention, productivity and loyalty, it is also a key link to customer satisfaction, company reputation and overall stakeholder value. Thus to gain competitive edge, organizations are turning to HR to set the agenda for employee engagement and commitment Employee engagement is define as “The extent to which employees commit to something or someone in their organization, how hard they work and how long they stay as a result of that commitment.” Research shows that the connection between an employee’s job and organizational
strategy, including understanding how important the job is to the
firm’s success is the most important driver of employee engagement .Infract, employee with the highest levels of commitment perform 20% better and are 87%less likely to leave the organization, which indicates that engagement is linked to organizational performance. In contrast, job satisfaction a term sometimes used interchangeably with employee engagement is defined as how an employee feels about his or her job, work 5
environment, pay, benefits etc. Employee engagement is a complex concept, with many issues influencing engagement levels consequently, there are many pathways to foster engagement, with, and with no one ‘Kit’ that fits all organizations. While each company may define employee engagement differently, ultimately, the key to effective engagement will be rooted in the flexibility of approach most appropriate for each individual firm. For example, the company may consider a best practice ‘and then determine the likely outcome of this practice in its workplace. This Research Quarterly is written to provide HR professionals and other business leaders with the knowledge and understanding of the many concepts and aspects of employee engagement as well as offers recommendations to foster engagement. Let us see what “employee engagement” used to mean Employee engagement is an idea whose time has come. we have seen it transition academic literature to odd practitioners to executive teams as a top strategic objective. Employee engagement, as a metric of business success, is getting attention than ever before. And yet the topic remains elusive, even murky. The chemistry of individual engagement is a complex, not one that can be easily addressed from the c-suite. Many organizations are stymied by stubbornly stagnant engagement levels despite yearly cycles of measuring and action planning. Global findings and trends help us articulate the most common drivers of engagement, but at the end of the day it’s the daily dynamics at play in your team, division and your organization that matter Employee engagement! “Loyalty is a thing of the past. Loyalty It appears every man, woman is ready to quit their job at the first opportunity” – Electronic Recruiting Exchange, November 2003 Employee engagement! 76 % of executives want more satisfaction, satisfaction not money!! – Global Study of 20 000 Executives Korn Ferry 20,000 Executives, International
Employee Engagement In Today’s Scenario. 6
1) What is “engagement”? 2) How it was nurtured in the past? 3) What is “special” about today’s business scenario? 4) Couple of suggestions.
ENGAGEMENT: “en”
“em” Verse
“engagement”
“Retention”
In the Past: a) “If you feel bad, it is your problem”. (Leadership Quotient). b) “ I am there for you 24/7” 24/7 (Welfare Orientation/ Humane approach). c) “The typewriter is not complete without Z The and good typist knows” ( Task/Personal Identification) ) Today’s Scenario: • 50’s (Industrial) • 60’s (Psychologist) • 70’s (Corporate Warfare) • 80 s 80’s (Internal Systems) • 90’s (Knowledge worker) 6) 2000+ (Asset Building) Suggestions: a. Increase Interdependency. (Free Agents/ 4 F Principle) b. Help Identify and Follow the Passion.
Need for the study:
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Employee engagement helps employees change their roles to better fit their talents.
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This requires self awareness of strengths and weaknesses on the part of both the manager and employee and a willingness to be flexible and find solutions.
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To assess whether there is a link between employee engagement and productivity
Scope of the study •
Evidences shown that a pragmatic shift towards more enduring partnerships rather than transactive relationships.
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Such enduring partnerships and strategic alliances have a better chance of tackling some of the intractable social problems that corporates are expected to handle.
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Focusing activity is also resulting in the development formal policies and procedures which are an important element in employee engagement programs.
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These policies give employee volunteers the support and structure they need to utilize all the time and resources they are eligible for in order to volunteer for social benefit.
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Importance of the study: •
Employees are engaged in their work and committed to their organizations give companies crucial competitive advantage.
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Thus, it is not surprising that organizations of all sizes and types have invested substantially in policies and practices that foster engagement and commitment in their work forces.
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In addition, engaged employees may be more likely to commit to staying with their current organization.
Research methodology and sample design: Data Collection: To study the subject, the data has been collected by Questionnaire Method
Questionnaire Method: The questionnaire with 16 questions was structured involving the questions from various areas pertaining to employee engagement namely job satisfaction, salary and perks, working conditions, personal relations with superiors, career advancement, etc., About 16 questionnaires were distributed among the ,executives and non executives. Almost all the Questionnaires were received back with responses. The responses were analyzed and interpreted.
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Primary Data: The primary data was collected by survey method and conducted with structured Questionnaire in such a way that it is easily understandable by the respondents.
Secondary Data: The data was collected from the various websites, companies’ literatures, and magazines.
Limitations of study: a) Responses of the employees may be biased. b) Time is one of the limitation factor c) The study has been done in a limited area d) Sample size is restricted to 20 respondents
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CHAPTER-2 LITERATURE REVIEW
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HISTORY OF EMPLOYEE ENGAGEMENT Engagement at work was conceptualized by William A. Kahn (1990) 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. The second related construct to engagement in organizational behavior is the notion of flow advanced by Csikszentmihalyi (1975, 1990). Csikzentmihalyi (1975) defines flow as the ‘holistic sensation’ that, people feel when they act with total involvement. Flow is the state in which there is little distinction between the self and environment. When individuals are in Flow State little conscious control is necessary for their actions Employee Engagement as the extent to which workforce commitment, both emotional and intellectual, exists relative to accomplishing the work, mission, and vision of the organization. Engagement as a heightened level of ownership where each employee wants to do whatever they can for the benefit of their internal and external customers, and for the success of the organization as a whole. Employee engagement was described in the academic literature by Schmidt et al (1993) using data from Gallup's engagement survey. A modernized version of job satisfaction, Schmidt et al's influential definition of engagement was "An employee's involvement with, commitment to, and satisfaction with work." This integrates the classic constructs of job satisfaction (Smith et al, 1969), and organizational commitment (Meyer & Allen, 1991). Harter and Schmidt's (2003) most recent meta-analysis can be useful for understanding the impact of engagement. Linkage research received significant attention in the business community because of correlations between employee engagement and desirable business outcomes such as retention of talent, customer service, individual performance, team performance, business
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unit productivity, and even enterprise-level financial performance ( Rucci at al, 1998 using data from Sears). Some of this work has been published in a diversity context ( McKay, Avery, Morris et al, 2007). Directions of causality were discussed by Schneider and colleagues in 2003.
Explanations by different authors Engagement at work was conceptualized by Kahn, (1990) 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. The second related construct to engagement in organizational behavior is the notion of flow advanced by Csikszentmihalyi (1975, 1990). Csikzentmihalyi (1975) defines flow as the’ Holistic Sensation’ that, people feel when they act with total involvement. Flow is the state in which there is little distinction between the self and environment. When individuals are in Flow State little conscious control is necessary for their actions. Employee engagement is the thus the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.’ Thus Employee engagement is a barometer that determines the association of a person with the organization Engagement is most closely associated with the existing construction of job involvement (Brown 1996) and flow (Csikszentmihalyi, 1990). Job involvement is defined as ‘The degree to which the job situation is central to the person and his or her identity (Lawler &Hall, 1970). Kanungo (1982) maintained that job involvement is a ‘Cognitive or belief state of Psychological identification. Job involvement is thought to depend on both need saliency and the potential of a job to satisfy these needs. Thus job involvement results form a cognitive judgment about the needs satisfying abilities of the job. Jobs in this view are tied to one’s self image. Engagement differs from job in as it is concerned more with how the individual employees his/her self during the performance of his / her job. Further more engagement entails the active use of emotions. Finally engagement may bethought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs. When Kahn talked about employee engagement he has given important to all three aspects physically, cognitively and emotionally. Where as in job satisfaction importance has been given more to cognitive side.HR practitioners believe that the engagement
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challenge has a lot to do with how Employee feels about the about work experience and how he or she is treated in the organization. It has a lot to do with emotions which are fundamentally related to drive bottom line success in a company. There will always be people who never give their best efforts no matter how hard HR and line managers try to engage them. “But for the most part employees want to commit to companies because doing so satisfies a powerful and a basic need in connect with and contribute to something significant”. Beardwell and Claydon (2007). It was found that, after the workers were given the training and freedom to make repairs to their own equipment rather than having to call a supervisor every time they experienced a problem, they reported fewer occupational injuries. This would suggest that workers who feel they have control over their destiny at work, a key aspect of employee engagement, are more likely to stay focused and less likely to make preventable mistakes Frank (2004). Although it is acknowledged and accepted that employee engagement is a multi-faceted construct, as previously suggested by Kahn (1990). Fox (1974) argued that despite an elaborate external controlling structure being in place, no role can be totally diffuse or totally specific; even in jobs which are tightly controlled, some outstanding element of discretion always remains. In cases where employees have been given some control over how they do their jobs, positive benefits have appeared to emerge. For example, previous research in the UK has looked at job redesign and the impact this has had on engagement. In 1990 research was carried out by the University of Sheffield on factory workers and the number of injuries they reported given the differing levels of control over their work GODDARD (1999) describes engagement with the organization and the task to be associated with time use. Difference in skills ,abilities and disposition variables are also expected to impact the levels of employee engagement .Gender difference have been found to impact employee engagement .personal values ,culture and climate of organizations also influence employee engagement . climate includes aspects such as systems and satisfaction with organization while culture includes accepts such as community .there also exists a strong correlation between complex feeling and emotions.
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The focus should be on personality, cognition and environment forces that determine an individual behavior in organizations Halbesleben (2003) examined a number of issues as to the measurement and process of burnout and engagement. Halbesleben investigated the role of perceptions of politics as an antecedent of burnout, as well as assessing the role of motivation as a mediator in the relationship between burnout and job performance. According to Lawler and Worley (2006) for a high-involvement work practice to be effective and for it to have a positive impact on employee engagement, employees must be given power They argue this will lead to employees having the ability to make decisions that are important to their performance and to the quality of their working lives, thus engaging them in their work. Furthermore, Lawler and Worley (2006) contend that power can mean a relatively low level of influence, as in providing input into decisions made by others or it can mean having final authority and accountability for decisions and their outcomes. Involvement is maximized when the highest possible level of power is pushed down to the employees that have to carry out the decision, resulting in gaining the maximum level of engagement possible from employee McCashland (1999) defined EE as ‘commitment or engagement - an emotional outcome to the employee resulting from the critical components of the workplace. Miles (2001) described it as intensively involving all employees in high-engagement cascades that create understanding, dialogue, feedback and accountability, empower people to creatively align their subunits, teams and individual jobs with the major transformation of the whole enterprise (Miles, 2001).
Purcell 2006 and Truss et al 2006. Moreover, engaged employees have been found to outperform their disengaged counterparts. However, recent research in the UK and other countries shows that there are 15
more disengaged employees than there are engaged employees in today’s organizations. Employee engagement can and has been found to make a difference. However there is great disagreement surrounding how to define engagement, how it should be operationalised and whether or not it is actually a valid construct at all. Furthermore, it is evident that sound, academic research lags somewhat behind practice given that the literature is under developed, and the concept of engagement is still in its infancy Robinson (2004).In the recent years, there has been a great deal of interest in employee engagement and it has become a widely used and popular term many have claimed that employee engagement predicted employees outcomes, organizational success, and financial performance (e.g. total share holders return). Saks (2006) argues that one way for individuals to repay their organization is through their level of engagement. In other words, employees will choose to engage themselves to varying degrees and in response to the resources they receive from their organization. Bringing oneself more fully into one’s work roles and devoting greater amounts of cognitive, emotional, and physical resources is a very profound way for individuals to respond to an organization’s actions, as suggested earlier by the work of Kahn (1990). Thus, employees are more likely to exchange their engagement for resources and benefits provided by their Organization. Truss et al (2006) define employee engagement simply as ‘passion for work’, a psychological state which is seen to encompass the three dimensions of engagement discussed by Kahn (1990), and captures the common theme running through all these definitions.
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Defining employee engagement There are numerous definitions of employee engagement; the two noted below are most relevant to this resource:
The Work Foundation’s definition: Employee engagement describes employees’ emotional and intellectual commitment to their organization and its success. Engaged employees experience a compelling purpose and meaning in their work and give of their discrete effort to advance the organization’s objectives.
The Best Companies’ definition: Engagement can be defined as an employee’s drive to use all their ingenuity and resources for the benefit of the company.
On a more intuitive level, employee engagement is about how people behave at work. It refers to the extent to which people in an organization know what they have to do, and willingly give of their discretionary effort to do that. It is the difference between people coming to work and doing an adequate job, and people coming to work and really giving of their best, displaying creativity and using their initiative. Engagement can be seen as ultimately about performance, because harnessing the discretionary effort of people does improve performance. If individuals are performing at the top of their potential, then it makes sense that teams, divisions, departments and organisations will work more effectively. Customers will receive better service. Efficiency will improve. Waste will be reduced. Overall, performance will be enhanced.
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What employee engagement doesn’t mean Job satisfaction and happiness are not synonymous with employee engagement. They are, however, noble ambitions and are important drivers of employee engagement. A person can be happy at work or satisfied with their job and not actually do any meaningful work. Job satisfaction and happiness do not in themselves create high performance. Employee engagement is sometimes used to describe ‘engaging with’ employees. Effective internal communication, consultation with employees and employee representation are all important elements of employee engagement. But an effective communication plan, or a successful consultation exercise does not amount to employee engagement in the context of this resource.
Aspects of Employee Engagement Three basic aspects of employee engagement according to the global studies are: •
The employees and their own unique psychological make up and experience
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The employers and their ability to create the conditions that promote employee engagement
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Interaction between employees at all levels. Thus it is largely the organization’s responsibility to create an environment and culture conducive to this partnership, and a win-win equation.
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Importance of Engagement Engagement is important for managers to cultivate given that disengagement or alienation is central to the problem of workers’ lack of commitment and motivation (Aktouf). Meaningless work is often associated with apathy and detachment from ones works (Thomas and Velthouse). In such conditions, individuals are thought to be estranged from their selves (Seeman, 1972) .Other Research using a different resource of engagement (involvement and enthusiasm) has linked it to such variables as employee turnover, customer satisfaction – loyalty, safety and to a lesser degree, productivity and profitability criteria (Harter, Schmidt & Hayes, 2002).An organization’s capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results.
Some of the advantages of Engaged employees are •
Engaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success.
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They will normally perform better and are more motivated.
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There is a significant link between employee engagement and profitability.12
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They form an emotional connection with the company. This impacts their attitude towards the company’s clients, and thereby improves customer satisfaction and service levels
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It builds passion, commitment and alignment with the organization’s strategies and goals
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Increases employees’ trust in the organization
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Creates a sense of loyalty in a competitive environment
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Provides a high-energy working environment
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Boosts business growth
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Makes the employees effective brand ambassadors for the company A highly engaged employee will consistently deliver beyond expectations. In the workplace research on employee engagement (Harter, Schmidt & Hayes, 2002) have repeatedly asked employees ‘whether they have the opportunity to do what they do best everyday’. While one in five employees strongly agree with this statement. Those work units scoring higher on this perception have substantially higher performance. Thus employee engagement is critical to any organization that seeks to retain valued employees.
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The Watson Wyatt consulting companies has been proved that there is an intrinsic link between employee engagement, customer loyalty, and profitability. As organizations globalize and become more dependent on technology in a virtual working environment, there is a greater need to connect and engage with employees to provide them with an organizational ‘identity.’
Categories of Employee Engagement According to the Gallup the Consulting organization there are there are different types of people:Engaged— “Engaged”employees are builders. They want to know the desired Expectations for their role so they can meet and exceed them. They're naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward
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Build and innovate
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Find new and more effective ways to accomplish their roles
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Move the organization forward
Not Engaged--Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their potential is not being tapped. They often feel this way because they don't have productive relationships with their managers or with their coworkers. • Stuck in low-risk, low-commitment mode • Don't feel a connection with or from their company, manager, or coworkers • Don't feel a sense of achievement • Become fixated on the activities of their roles instead of the outcomes • Are just concerned about doing the minimum they need to do to get by Actively Disengaged The "actively disengaged” employees are the “cave dwellers”. they are “consistently against virtually everything.” They're not just unhappy at work; they’re busy acting out their unhappiness .They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization functioning •
Are busy acting out their unhappiness
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Every day undermine what their engaged coworkers accomplish
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Factors Leading to Employee Engagement-
Studies have shown that there are some critical factors which lead to Employee engagement. Some of them identified are
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Career Development- Opportunities for Personal Development
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Career Development – Effective Management of Talent
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Leadership- Clarity of company Values
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Leadership – Respectful treatment of employees
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Leadership – Company’s standards of ethical behavior
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Empowerment Image
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Equal opportunities & fair treatment
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Performance Appraisal
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Pay & benefits
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Health & Safety
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Job satisfaction
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Communication
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Family friendliness
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Co-operation
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Career Development- Opportunities for Personal Development Organizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their Potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them. •
Career Development – Effective Management of Talent Career development influences engagement for employees and retaining the most talented employees and providing opportunities for personal development. Feeling Valued & Involved •
•
Leadership- Clarity of Company Values
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Employees need to feel that the core values for which their companies stand are unambiguous and clear. • Leadership – Respectful Treatment of Employees Successful organizations show respect for each employee’s qualities and contribution – regardless of their job level. •
Leadership – Company’s Standards of Ethical Behavior
A company’s ethical standards also lead to engagement of an individual • Empowerment Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward. • Image How much employees are prepared to endorse the products and services which their company provides its customers depends largely on their perceptions of the quality of those goods and services. High levels of employee engagement are inextricably linked with high levels of customer engagement. • Other factors Equal Opportunities and Fair Treatment The employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and advancement to all the employees • Performance appraisal Fair evaluation of an employee’s performance is an important criterion for determining the level of employee engagement. The company which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of employee engagement. • Pay and Benefits The company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations.
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• Health and Safety Research indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate method sand systems for the health and safety of their employees. • Job Satisfaction Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job. • Communication The company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organization. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high.18 • Family Friendliness A person’s family life influences his wok life. When an employee realizes that the organization is considering his family’s benefits also, he will have an emotional attachment with the organization which leads to engagement • Co-operation If the entire organization works together by helping each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged.
How to measure Employee Engagement? Gallup research consistently confirms that engaged work places compared with leas engaged are much more likely to have lower employee turnover, higher than average customer loyalty, above average productivity and earnings. These are all good things that prove that engaging and involving employees make good business sense and building shareholder value. Negative workplace relationships may be a big part of why so many employees are not engaged with their jobs.
Step I: Listen 26
The employer must listen to his employees and remember that this is a c o n t i n u o u s process. The information employee’s supply will provide direction. This is the only way to identify their specific concerns. When leaders listen, employees respond by becoming more engaged. This results in increased productivity and employee retention. Engaged e m p l o y e e s a r e m u c h m o r e l i k e l y t o b e s a t i s f i e d i n t h e i r p o s i t i o n s , r e m a i n w i t h t h e company, be promoted, and strive for higher levels of performance.
Step II: Measure current level of employee engagement Employee engagement needs to be measured at regular intervals in order to track its contribution to the success of the organization. B u t m e a s u r i n g t h e engagement (feedback through surveys) without planning how to handle the result can lead employees to disengage. It is therefore not enough to feel the pulse—the action plan is just as essential Knowing the Degree in which Employees Are Engaged? E m p l o y e e e n g a g e m e n t s a t i s f a c t i o n s u r v e ys d e t e r m i n e t h e c u r r e n t l e v e l o f e m p l o y e e engagement. A well-administered satisfaction survey will let us know at what level of engagement the employees are operating. Customizable employee surveys will provide with a starting point towards the efforts to optimize employee engagement. The key to successful employee satisfaction surveys is to pay close attention to the feedback from the staff It is important that employee engagement is not viewed as a one t i m e a c t i o n . Emp loyee engagement should be a cont inuous process of measur ing, analyzing, defining and implementing. The employee survey is a diagnostic tool of choice in the battle for the hearts of employees. Studies of Gallup, Mercer, Hewitt and Watson Wyatt (consulting companies) asked workers number of questions relating to their job satisfaction. Gallup being one of oldest the consulting organization {in conducting engagement survey} creates a feedback system for employers that would identify and measure elements of worker engagement most tide to the bottom line. Things such as sales, growth, productivity and customer loyalty are all accessed. After Hundreds of focus group and thousands of interviews with e m p l o ye e s i n a v a r i e t y o f i n d u s t r i e s , G a l l u p c a m e u p w i t h Q . 1 2 , a twelve-question survey that identifies strong feelings of employee engagement.
They have identified 12questions that most effectively measure the links (the
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Gallup Q12). 1. Do you know what is expected of you at work? 2. Do you have the materials and equipment you need to do your work right? 3. At work, do you have the opportunity to do what you do best every day? 4. In the last seven days, have you received recognition or praise for doing good work? 5. Does your supervisor, or someone at work, seems to care about you as a person? 6. Is there someone at work who encourages your development? 7. At work, do your opinions seem to count? 8. Does the mission/purpose of your company make you feel your job is important? 9. Are your associates (fellow employees) committed to doing quality work? 10. Do you have a best friend at work? 11. in the last six months, has someone at work talked to you about your progress? 12. In the last year, have you had opportunities at work to learn and grow? The interpretation of the questionnaire and one of the companies engagement level is summarized in the table below. Some of the discussions which come from Gallup’s questions are: • Know what is expected of me at workE m p l o y e e s s h o u l d k n o w e x a c t l y w h a t i s expected of them. If expectations are unclear, employees will inevitably face frustration, and will be open for other opportunities where they do know what's expected of them, and where their contributions are measured and recognized.
• Materials and equipment - Employees need the right tools and equipment to support their skills, experience and talents & perform their jobs at an optimum level.
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• Do what I do best every day - Are your employees cast in the right roles? Knowing the critical demands for every role is a key to ensuring that talents fit those demands.
• Supervisor/Someone at work care -Managers must spend most of their time with their m o s t p r o d u c t i v e t a l e n t . Many managers give their greatest degree of attention to employees who are falling behind. Talented, productive people crave time and attention from their managers, and will leave your company if they have a weak relationship (or no relationship) with their manager or supervisor.
• Co-workers committed to quality -Many companies arbitrarily put teams together w i t h o u t c o n s i d e r i n g t h a t employees only psychologically commit to teams if the y p e r c e i v e their team members will support their high level of c o m m i t m e n t a n d performance. Talented employees set high standards and depend upon those around them to support their growth towards excellence.
• Opportunities to learn and growThe Company should create an environment that encourages employees to drive towards innovation or to create better systems for more p r o d u c t i v e r e s u l t s . G r e a t m a n a g e r s a l w a ys a s k w h a t s k i l l s a n d k n o w l e d g e n e e d t o accompany talent to result in the greatest outcome for each employee. As discussed the Gallup study Q12 is based on positive Psychology and emotions .Having a best friend at work or receiving recognition every week makes you feel cared for and proud respectively. If you want to keep recreating those positive emotions, then you keep coming back to work. so the Q.12 measures engagement, and engagement is positive emotional connection to the work. thus the mechanism of the broaden-and- build theories and the action tendencies of positive emotions help in understanding why the Q.12 has been so powerful for Gallup in terms of predicting outcomes. Borden-and build theory is about evolutionary significance of positive emotions. Positive emotions are better observed over the long haul. Their effects accumulate and compound overtime and the adaptive benefits are evident from later, when people face new challenges .The Gallup research Has thus made a contribution in adding an additional ‘P’ to the 4 P’s of marketing i.e. product, price, and promotion place and now people to the mix. In the combination of engaged employees, Gallup brings engaged customers 29
to form the concept of human sigma. These include customer engagement, loyalty and emotional attachment. Customer e n g a g e m e n t h i e r a r c h y , c u s t o m e r e n g a g e m e n t s c o r e s a n d d e v e l o p i n g t h e c u l t u r e o f engagement and customer focus. The Gallup Organization decided to initiate a multi-year research project to try and define a great workplace - a great workplace was one where employees were satisfied with their jobs and this thus helps to produce positive business outcomes.
Step III: Identify the problem areas Identify the problem areas to see which are the exact areas, which lead to disengaged employees
S t e p IV : T a ki n g a c t i o n t o i m p r o v e e m p l o y e e e n g a g e me n t by a ct i n g u p o n t h e problem areas Nothing is more discouraging to employees than to be asked for their feedback and see no movement toward resolution of their issues. Even the smallest actions taken to address c o n c e r n s w i l l l e t t h e s t a f f k n o w h o w t h e i r i n p u t i s valued. Feeling valued will boost mo rale, motivate and encourage f u t u r e i n p u t . T a k i n g a c t i o n s t a r t s w i t h l i s t e n i n g t o employee feedback and a definitive action plan will need to be put in place finally.
Handling “Not-engaged” Employees Efforts to raise levels of engagement are worthwhile for those in the not-engaged range. Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing a task vs. achieving an outcome. Managers who only provide tasks to an employee reinforce not-engaged behaviors and actually move 180 degrees away from engaging the heart, mind, and soul of that person. Employees who are not-engaged tend to feel their contributions are being overlooked,
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and their potential is not being tapped. They often feel this way because they don’t have productive relationships with their managers or with their coworkers. The way to get people to become a part of an organization is through relationships. Employees who feel disconnected emotionally from their coworkers and supervisor do not feel committed to their work. They hang back and do the minimum because they don’t believe anyone cares. These employees “lower the bar” for themselves by doing the least amount of work necessary. Managers need to demonstrate a sense of really caring about employees and what’s important to them. Managers can help employees refocus on the demands of their roles and on the skills, knowledge, and talents they bring to their jobs. The manager who takes the time to have a dialogue about an employee’s strengths and how these can make a difference forges essential ties and connections that lead to employee commitment.
Managing “Actively Disengaged” Employees Too often people have to work with others who have become disenchanted and actively disengaged. Actively disengaged employees aren’t just unhappy at work. They act out their discontent and sow seeds of negativity at every opportunity. They undermine the work of others. They are not just indifferent to company goals and mission; they express mistrust and outright animosity.
The way to get people to become a part of an organization is through relationships As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization’s functioning. The Gallup Organization estimates that there are 22 million actively disengaged employees that cost the American economy up to $350 billion per year in lost productivity, including absence, illness and other problems that result when workers are unhappy at work. A good manager will identify those who are disengaged and explore the reasons behind the disconnect to determine if coaching or other interventions are appropriate. In some cases, people will respond favorably to opportunities to reconnect and rekindle their interest and enthusiasm for their jobs. Most people search for ways to make their lives and work meaningful and only disengage when they feel hopeless. Those who are actively disengaged may thrive on the negativity and refuse to become part of any solution, preferring to perpetuate problems. If they repeatedly refuse opportunities to engage again, terminating their employment should be seriously considered in order to avoid further damage to staff morale and organizational progress. 31
Systematically Improving Employee Engagement Improving engagement goes beyond simply asking the right questions. Engaging employees requires a year-round focus on changing behaviors, processes, and systems to anticipate and respond to your organization’s needs. From the leadership team to the frontline employees, all levels within an organization must commit to making these changes. A SUSTAINABLE APPROACH Gallup approaches employee engagement with sustainability in mind, and thus, provides managers and leaders with tools to help drive performance on an ongoing basis through a combination of measurement, reporting, learning, action planning, and strategic interventions. Using the latest technology and cutting-edge research, Gallup continually provides clients with innovative solutions that drive change. From state-of-the-art organizational mapping software and online tools to frst-class instructional designers and consultants, Gallup’s approach to employee engagement reduces the amount of time needed to move from measurement to improvement. SELECTING FOR ENGAGEMENT Te world’s top-performing organizations recognize the critical role managers play in achieving business objectives. As a global leader in the area of employee recruitment and selection, Gallup has a proven method for hiring managers and employees with the talent to build engagement. After reviewing nearly 10,000 validated pre-employment questions and the global Q12 database, Gallup uncovered a subset of questions that enables organizations to assess whether a job candidate, if hired, will boost engagement levels. Tis engagement selecting approach will help hiring managers fnd candidates who have more potential to drive engagement in the workplace.
What the World’s Best Organizations Do Diferently Gallup drives organizations to systematically improve employee engagement using proven interventions at the local and enterprise level. Beyond setting the 32
proper strategy, interventions include fnding the right performance metrics that drive accountability, creating a comprehensive communication strategy, and designing development opportunities for every employee, manager, and leader. While partnering with many of the world’s best organizations, Gallup has observed that world-class organizations make employee engagement a priority by focusing on the following: • Strategy World-class organizations develop a formula for success by looking objectively and rigorously at the business problems they face and by focusing on fnding the right employees and keeping them engaged. For these organizations, an employee engagement strategy is not only fundamental to the way they do business, it is critical to their success. • Accountability and Performance Te top-driven companies focus on outcomes. Tey defne and rigorously measure success at every level in the organization. Tese measurements ultimately help focus each person, team, department, and business unit on driving performance and results.
• Communication Within the best performing organizations there is a cultural alignment between the employees and the company, paired with a strategic alignment between activities and company goals. Tese organizations use their corporate communication touchpoints to reinforce their commitments to employees and customers.
•
Development
As the struggle for talent intensifies, organizations face a continual Challenge to build and grow their leadership capacity. The world’s Top-performing companies have comprehensive leader and manager development programs, but they also go one step further — these programs are performance-driven and incorporate a comprehensive Succession plan throughout the organization.
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The Employee Engagement Network Top Tens Strategies to Impact Engagement Across an Organization Jennifer Schulte Global Engagement Director for Mars, Inc. 1.Start at the top. If your most senior teams are not true believers of the power of engagement, it will be an uphill battle for everyone. Find a business metric they will respond to (we used the salary & benefts dollar cost of the ‘actively disengaged’ – which was over $500 million!) and get the CEO and his own team to start with themselves as role models
2.Choose the right champions. To make sure engagement captures both hearts and minds, activate your ‘early adopters’ who are passionate about not only the concept but also about driving change and infuencing others to communicate with local business units 3.Focus on a bold goal. Just “improving engagement” will not be enough to connect with local business leaders and managers who drive the bottom-up work that must happen to be successful and sustainable. Choose a corresponding metric and date as a target 2-3 years out that is both stretching and will make a signifcant impact on the business, and start rallying your senior leaders.
4.Energize your HR function. We can’t rely on HR to “do” engagement for the organization, but as a strategic business partner they must be accountable for ensuring it lives on local business strategies and is taken seriously in talent-related decisions. Engagement impacts many aspects of what HR does own, from morale to retention, and it’s in their best interest to drive the planning of actions that will create the right results
5.Hold managers accountable. It’s no secret that the relationship between a frst-line manager/supervisor and their associates has the most direct impact on engagement – all the research points to this in some way. Focus on the behavior change and require managers to report results on actions they’ve taken to impact engagement in their teams. This should be weighted as an indication of performance when someone manages others directly.
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6.Celebrate and replicate those who can engage. Find formal and informal ways to recognize and reward your managers and associates who are great at engagement! Some will fnd this a natural way of working and not realize they’re on to something that others should be learning from as best practice.
7.Recruit and promote for engagement. Why not make sure you are putting people into management positions who will be successful at engaging their associates? There are several different tools available as long as the organization uses them in a consistent way.
8.Develop for engagement. Most large corporations are training and developing managers in skills such as coaching, leadership and strategic thinking. Make sure engagement – the “how to” but also the compelling reasons why, and what the organization will hold them accountable for delivering – is also on the learning and development agenda. 9.Remove systemic barriers. In a business of largely manufacturing environments, we’ve found key themes that can get in the way of engagement across an entire site or segment no matter how good the front- line supervisor might be at it. Themes such as communication and trust, pay and benefts, offce vs. plant culture, and (lack of) change management must be identifed by actively listening to your frontline associates and addressed by the senior leadership in addition to direct manager-associate conversations.
10.Focus on chronic under-performers. Unfortunately there are managers who won’t be engaging no matter how much training and communication you provide. If a manager’s team scores low on a survey (we use the bottom half as our cut-off point) for 3 surveys in a row, it’s time to get involved and create a personalized engagement action plan. This typically involves that manager’s manager and HR who agree on the right steps – and often results in moving the manager to a role where they do not manage others, or moving them out of our business when there is also a performance impact. This focused attention helps not only connect the engagement and performance of managers but also sends a strong message about what will and won’t be tolerated by the organization. Engagement implies commitment. Commitment can be refected in the thoughtful questions you ask.
Here are ten questions that will show, and generate, engagement: 35
1.How can I help you right now? The Merriam- Webster Dictionary says that commitment is “the state or an instance of being emotionally impelled.” Offering assistance sends a clear message that you are, in your heart, engaged in a way that compels you to give of yourself. That is a message that people are hoping to receive and will recognize immediately.
2.What else do you need from me for this project? Let’s face it: most bosses would be thrilled if everyone showed a keen interest in hitting the standard, or the corporate version of minimum daily requirements. When you show a willingness to do more than is required, your level of engagement is clear to those above you, sets an example for those around you, stands a good chance of building a new, even higher, standard.
3.Who can I introduce you to to help make this happen? There’s a reason social networking sites have engaged so many people. We seek ways to extend our capabilities by connecting with those whose interests are similar. When you become the conduit to new people and new ideas, you provide a service to the organization and become known as a person of infuence.
4.When can we get together to discuss our progress? Managers constantly juggle events, people, deadlines, and problems, all the time wanting to be clear about one thing: “How are we doing?” The person who initiates that conversation takes a bit of the burden from the boss and sets the stage for a much-desired discussion.”
5.Whatcan we do to make this just a little bit better? You don’t have to focus on doing more in order to be engaged. Interest in improved quality, improved processes, improved relationships--each of these helps bump up the game for all concerned.
6.How am I doing based on our agreement for this? Managers get paid to manage performance and the ensuing results. Even so, many
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managers fnd it diffcult to have performance discussions. When you make the frst move and then start the conversation, you’ve shown a high level of engagement as a result of your concern for outcomes and allowed your supervisor to be more relaxed about the performance discussion, knowing that you want it.
7.Who else can we include? In a way, this is related to #3. Inclusion does two things, adds important resources and engages others in your project. What other information can I provide? Decisions, progress reports, changing direction--all require up-to- date information to be done effectively. In order to help others stay engaged, nothing beats timely information and updates to spark interest. In a knowledge economy, information is the currency of choice. Be the banker
8.How can I best support the others in the group? I’ve always found this to be one of the most engaging questions--and interventions--in the workplace. When there are a half dozen people gathered around a conference table and one asks,
9.“How can I support each of you?”, watch what happens. That single, selfess gesture engages others in a way that prompts each to think more deeply about the project and the connectedness of the people involved.
10.What else would be helpful to discuss? At the end of any interaction, this “11th hour” question--followed by silence on your part--creates a space that allows the other person to fnally address something that may have been held back until now. (Or, there may be nothing). If there is-- and the issue was held back for whatever reason--then you’ve opened the door to the exploration of a situation whose existence was a hindrance to engagement!
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Engaged Employees are: 1.Obvious – it may be an elusive quality, diffcult to describe but an engaged employee is more likely to be exhilarated by their role. Different cultures show this in different ways but most of us can spot and will be drawn to a genuine smile and welcoming, inclusive attitude.
2.Authentic – our recent survey of almost 4000 communicators listed “being yourself” as one of the key motivators for employees. It also proves that employees who are themselves in the workplace are more effective. Employees who are clear enough about what their organisation stands for and are at ease with the culture are more likely to bring themselves to work and to share stories about their family lives, hobbies, likes and dislikes.
3.Receptive – we all know that if we’re engaged, we’re far more open to opportunities to be involved with new initiatives and share new experiences. Engaged employees listen actively and offer support and challenge, largely because they care about the outcomes.
4.Involved - they are part of the programme not recipients of it. They feel they can infuence their personal fate through infuencing the fate of the organisation. Involvement leads to a greater sense of ownership. It’s also the way most of us learn best.
5.Proactive – engaged employees understand the goals, culture and values of the organisation so they make suggestions or take initiative, even innovate for the greater good, without being asked. Their primary focus is on adding value to the organisation rather than obsessing about what the organisation gives them.
6.Energised – engaged employees have correspondingly high energy levels. They do things and maintain appropriate momentum. They are the heartbeat, rather than their managers, and they set the pace.
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7.Achievers – because of enhanced levels of understanding, clear goals and boundaries, an appropriate mix of support and challenge (and in light of the characteristics above), they tend to be focused and, therefore, more productive. The things they do tend to get results.
8.Advocates – whether at conferences or recruitment fairs even dinner parties or sitting next to you on a plane , engaged employees are proud and happy to recommend the organisation and to represent the brand. Want to know how engaged your employees are? As a starting point, fnd out how many buy/use your products. 9.CEOs - they are chief engagement offcers. They inspire others by example. They are communication role models in all stakeholder engagements whether with customers, fellow employees, competitors or even shareholders.
10.In demand - take care, engaged employees are a precious commodity. The war for talent rages irrespective of market conditions. Who and where are your CEOs? What measures are you taking to clarify your employer brand and to engage and manage your talent?
Ten Strategies for creating a successful culture of employee engagement
•
High involvement hiring – choosing employees that not only have the right skills but also are a long term fit with the company’s culture
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Providing comprehensive benefits and a flexible work environment, including paid time off to participate in community service
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Extensive training and promotion from within – investing in employees to build their skills and enabling them to take on increased responsibility
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Fostering a culture of mutual respect and trust, empowerment and shared responsibility, yielding long term loyalty and often valued over rewards
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Celebrating success – engaged teams work hard and spend time celebrating together when milestones are achieved
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Ensuring the core values are frequently heard and understood by all, and instigating a comprehensive communications programme of company-wide updates, successes, and employee recognition
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Sharing key success metrics critical to the company’s financial success with employees and articulating those that employees affect daily
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Employee participation – making sure all employees have a say over how work is done and have some degree of autonomy
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Performance-based rewards and compensation – clearly tying rewards such as bonuses to individual and company performance
•
Sharing ownership, for example via stock options, restricted stock, employee share option plans, or co-ops. 40
§
•
Firms that establish a strong
engagement culture from the beginning have a greater chance of long-term survival’
•
If businesses genuinely view employees, not as mere costs but as a key asset for business success, then management must introduce employee engagement strategies, as these are key drivers of business growth and success, and a strong factor in the ability to weather economic downturns.
•
These strategies increase human resource flexibility, which is crucial in our current volatile business environment for the longer-term survival of organisations. Firms that establish a strong engagement culture from the beginning have a greater chance of long term survival.
.
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What Employees Want •
Employees want to give more, but they also want to see a clear and measurable return for their effort.
•
Only 1 out of 5 workers today is giving full discretionary effort on the job – going well above and beyond what’s required because they’re caught up in the passion and purpose of creating a better product, service or customer experience Close to 4 out of 10 workers are disenchanted or disengaged. They are not performing anywhere near their true capability because they don’t have the necessary rational, emotional and motivational connections to the company
•
But the silver lining is that engaged employees are not born, but made. Organizations can create the right conditions to nurture engagement and drive better performance.
Top 10 Drivers of Employee Engagement •
Senior management sincerely interested in employee well-being
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Ability to improve skills and capabilities
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Organization’s reputation for social responsibility
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Employees inputs into decision making
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Quick resolution of customer concerns
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Setting of high personal standards
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•
Excellent career advancement opportunities
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Challenging work assignments that broaden skills
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Good relationships with supervisors
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Organization encourages innovative thinking
What can organizations do to close the engagement gap? First and foremost, organizations must have effective — and engaged — leadership at the top.Closing the gap between the traditional leadership model of the last century and the characteristics required for engaging leadership has implications for management selection and training as well as leadership succession and development. Organizations need to review their leadership programs to ensure that leaders understand the enormous positive impact they can have on employee engagement, retention and performance. Organizations need to validate the following requirements: Do existing leadership competencies and development programs focus on building the right “muscles” in the senior team?
Are high potential leaders assessed, developed and promoted based on the right leadership criteria
Do performance management programs emphasize the right leadership activities and key touch points that leaders have with employees (e.g. coaching, sponsoring, recognizing, role modeling, communicating, involving)?
Second, organizations need to customize and shape the work environment and culture to match their unique basis for competitive advantage, tangibly aligning workforce strategies with business priorities. Organizations need to design workforce strategies 43
and allocate their finite supplies of time, management attention and financial resources. The questions to address are: •
What are the organization’s unique cultural differentiators, based on its specific priorities and strategies?
•
To what extent is the existing culture supporting and driving the behaviors required for success?
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Are the organization’s human capital strategy and underlying programs and processes aligned to create a high performance culture?
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What changes are required to reshape the culture for enhanced performance?
•
Is the HR function equipped to develop and execute new strategies and support for the change process?
Third, organizations need to put their workforce under the same microscope as they do their customers – to understand employees’ needs, issues, values and “buying” patterns, so as to give themselves a competitive edge in attracting, retaining and engaging employees, as well as in channeling employees’ energy and brain power most effectively. Top 5 drivers for attracting employees
o Competitive base pay
o Career advancement opportunities
o Challenging work
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o Convenient work location
o Flexible schedule
The Benefits of employee engagement
There has been plenty of research across a number of industries and countries and the research from organizations like Gallup as to the benefits of enhancing the bond between the employee, their colleagues and the organization.SOME OF THOSE ARE •
Increased passion for, commitment to and alignment with the organization’s strategies and goals
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Improved overall organizational effectiveness
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A high-energy working environment increased productivity and improves morale
• Boosted business growth 45
•
Made the employees effective brand ambassadors for the company.
•
Created a sense of loyalty in a competitive environment
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Attracted more people like existing employees Increases employees' trust in the organization
•
Lowered attrition rate and higher talent retention
•
Created a community at the workplace and not just a workforce.
The level of employee engagement affects key results such as sales, customer satisfaction, and innovation and employee turnover. An engaged workforce is capable of delivering sustained differentiation and a significant competitive advantage Increasing competition from current competitors and new markets entrants ,cost pressures ,innovation in products and technology ,emerging brands ,globalization ,changing consumer buying patterns and services expectations, shareholders value and city expectations. These are just some of the challenges facing every business and most will be on your senior team’s agenda in some form or other right now. Many organization struggle with range of challenges and need to adapt quickly to an ever –changing business environment .this often lead to many initiatives being run simultaneously. This usually results in disjointed and conflicting initiatives that confuse employee and deliver little real 46
improvement.
Engagement challenges Data revealed that engagement levels can vary, in association with a variety of personal and job characteristics and with experiences at work. Some key findings were: engagement levels decline as employees get older – until they reach the oldest group (60 plus), where levels suddenly rise, and show this oldest group to be the most engaged of all minority ethnic respondents have higher engagement levels than their white colleagues managers and professionals tend to have higher engagement levels than their colleagues in supporting roles, although people in the latter group appear to owe greater loyalty to their profession than to the organization in which they practice their craft engagement levels decline as length of service increases having an accident or an injury at work, or experiencing harassment (particularly if the manager is the source of the harassment) both have a big negative impact on engagement Employees who have a personal development plan, and who have received a formal performance appraisal within the past year, have significantly higher engagement levels than those who have not. The above findings show that organizations need to work hard to prevent, and minimize the impact of, bad experiences. They also need to ensure that employees’ development needs (including the special needs of professionals) are taken seriously; pay attention to, and value the roles of, support staff; and to maintain the interest of 47
longer-serving employees. The relatively high levels of engagement of the oldest employees, and of minority ethnic staff, suggest sources of untapped potential within some organizations.
Road map for employee engagement Once you have identified the key drivers of employee engagement, you can start to create and implement a road map for achieving outstanding organizational performance through the service-profit chain. Have a vision of where you want to get to, and clearly and persuasively communicate that vision to employees. Be consistent in your behaviors as you strive to achieve that vision. Do this and your employees will follow Fail and you will be out. Involve your people and value their Input Business journals are also brim full with articles about change. Ignore these too because they typically start from the Machiavellian premise that 'people hate change'. This is nonsense of course. People love change - in fact they can hardly get enough of it. People hate change No, if people are involved in change and their input to the process is valued they will readily engage with it. Look after the reputation if the world believes that the organization is a poor’ If the world believes that organization is a poor 'corporate citizen' they will tell people. If employees believe what they hear they will increasingly distance themselves from the business. And if they don't, they will get increasingly frustrated if they see that you are doing nothing to correct these misconceptions. Either way, organizations that proactively manage their reputations will also enjoy higher levels of employee engagement.
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Well, actually, it could, because a common theme runs through all three stages of the process of communication. A major study by Watson Wyatt: Connecting Organizational Communication to Financial Performance has given us the ultimate end-to-end measurement: from key driver of employee engagement (communication) to shareholder return on activity. The research found that 'a significant improvement in communication effectiveness is associated with a 29.5 per cent increase in market value and that companies with the highest levels of effective communication experienced a 26 per cent total return to shareholders from 1998 to 2002, compared to a 15 per cent return experienced by firms that communicate least effectively'. Effective communications create engaged employees, creating loyal customers who in turn create bigger profits. Furthermore, they found that organizations that communicate effectively were 'more likely to report employee turnover rates below or significantly below those of their industry peers.' The report highlights the return on effective communication, not information. And communication is not just about telling people what you want them to do or are about to do to them - it is about genuine two-way dialogue with both employees and the outside world. And although this is simple it is not always easy. In fact it is going to be really difficult to implement because there are four substantial barriers in place in most organizations: Most managers focus on 'hard' measures, delivering the required outcomes on time, on budget, and on target. The 'soft' stuff is all too often done on the side of the desk, as an extracurricular activity, or abdicated to personnel. Giving people the information and instructions they need to achieve these outcomes is clearly part of the manager's role. Communication, however, is still seen as 'soft' stuff, even though the reality is that it is the hardest driver of organizational performance that managers have at their disposal. Managers have not developed their communication skills we have practiced as individuals throughout our lives. Organizational communication
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operates on a totally different scale and uses thoroughly unnatural tools. Mobile phones, email,
PowerPoint
and
teleconferencing
are
immensely
powerful
tools
for
communicating with a large, widely spread audience. Because our natural communication skills are so good we take it for granted that we will be competent organizational communicators too. We are therefore making the assumption that we can use unnatural tools to engage with an unnaturally large audience without acquiring any additional skills. Naturally they are wrong! Communication channels are absent, inappropriate, or over-subscribed Decades of failing to take organizational communications seriously means that in many businesses appropriate channels have not been created or effectively maintained. As the head of internal communications for a major blue-chip corporation recently commented "a decade ago the 'internal communications department' was an ex-journalist who churned out the employee newsletter once a month". Now things have moved on considerably, but even within progressive organizations there is still a legacy of poor channel infrastructure, usage and management to be tackled. Communication around corporate citizenship is disjointed Like internal communications, 'community communications' is a new and developing discipline which is working through a host of legacy issues. Foremost amongst these are the need for organizations to enter into a true dialogue with the communities within which they operate and for all of the positive interactions within these communities to be 'joined up'. Again much progress has been made, but although corporate and social responsibility (CSR) teams have done great work in gathering and promoting a wide range of issues, few companies could claim a truly strategic approach. And even fewer could claim that CSR is owned by each and every employee, which is where it needs to be if employees are to feel personal ownership and pride in the organization they work for. A manifesto for outstanding organizational performance
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It is clear that employee engagement is a major driver of organizational performance. Plus effective organizational communication is a significant driver of employee engagement. Education: Every manager in the organization must understand how effective communication drives performance;
Development: Every manager in the organization must recognize the difference between natural and organizational communication and commit to developing the required skills;
Infrastructure: The organization must invest in the development and maintenance of appropriate channels of communication;
Community: The organization must actively manage its reputation as a corporate citizen and positively engage employees and the wider community alike.
•
This is a simple plan, but it is not a sequential plan - all four areas can, and should, be tackled simultaneously.
This means that it will not necessarily be an easy plan to deliver, but business leaders must deliver because with almost nine out of ten employees currently being either 'disengaged' or just 'moderately engaged' at work, the opportunity to drive outstanding organizational performance is simply too enormous to ignore. A highly engaged employee is someone who will consistently deliver beyond expectations and who has a sense of belonging or a strong bond with the company and its brand. This creates a ripple effect that results in a positively charged atmosphere in the organization.
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Connection with their work and carve out a satisfying future in the organization. The most successful organizations make engagement an ongoing priority, not a once-a-year event. They take a multi-faceted approach to address problem areas and improve engagement scores organization wide. The larger and more globalised organization; the greater your need to engage the workforce. Engaged employees are not just committed. They are not just passionate or proud. They have a line-of-sight on their own future and on the organization’s mission and goals. They are “Enthused” and “In gear” using their talents and discretionary effort to make a difference in their employer’s quest for sustainable business success. There is a clear correlation between engagement and retention, with 85% of engaged employees indicating that they plan to stay with their employer. An effective employee retention strategy is based on an understanding of engagement. Moreover, Engaged Employees stay for what they give (they like their work); Disengaged employees stay for what they get (favorable job conditions, growth opportunities, and job security). The most common factors influencing job satisfaction are: More opportunities to use talents Career development and training. This holds true across engagement levels, intent to stay, generations, and job titles. Drivers of increased contribution vary. Employees who are aligned and already expending discretionary effort are looking for more resources. “Greater clarity about what the organization needs me to do and why” was the top response for employees who, although their level of satisfaction may vary, are at the lowest levels of contribution. Tales of bullying bosses are exaggerated, but the bad managers out there are cited as the third most common reason for leaving (trailing lack of career growth and dislike of the
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actualwork). Three in four (75%) employees trust their immediate managers. This finding is consistent across generations, functions, and, for the most part, job titles. 44% of disengaged employees actually trust their managers. Consistent with findings from past studies, managers fall short in encouraging and rewarding their employees’ use of talents. Although two-thirds of managers overall appear to do this, employees at the lowest engagement levels clearly lack their manager’s support in leveraging their unique capabilities. Only about half (53%) of employees trust their organization’s senior leaders — the people who set the tone for organizational culture and need to inspire highperformance and commitment.
Best practices include •
Maximize managers - they are the main connection in the employee engagement equation.
•
Align, align, align - clarify strategy and organizational goals.
•
Redefine career - employees need line-of-sight on their future to be truly engaged.
•
Pay attention to culture - culture and employee motivation go hand-in-hand.
•
Survey less, act more - don't rely purely on an employee engagement survey to drive your strategy.
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CHAPTER-3 ORGANIZATION PROFILE
ABOUT RAMKY…
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The Ramky Group, with its headquarters in Hyderabad, was founded in the year 1994, and has been playing a pioneering role in the development of infrastructure in India. It is a specialist multi-disciplinary organization with a turnover of over 4,500 Crores, focused in the areas of Civil, Environmental and Waste Management infrastructure with specific emphasis on Public Private Partnership (PPP) projects. The Group has over 6,000 employees across its professionally managed Group Companies, and has regional offices at Delhi, Mumbai, Ahmadabad, Bangalore, Chennai, Bhopal and Kolkata, with 55 project offices across India, UAE, Singapore and Gabon, West Africa. Our global outlook has picked up momentum… so much so that more than 25% of all our employees are outside India. The basic principle we work under is that whatever we do should be a major contribution to the society, and the Country should be proud of it. We’ve done fairly well on that front, with a string of firsts like India’s first integrated hazardous waste facility, India’s first biomedical waste facility and also India’s first integrated municipal solid waste facility. These are in addition to our massive road-building and other infrastructure works… nothing short of building the Country’s backbone. Ramky has active business interests in infrastructure development – civil, public and environmental. There is a strong demand for our products and services which is reflected in a confirmed order-book. We enjoy equity participation from reputed national and international institutions, while the Group has enjoyed strong profitable growth at a CAGR above 30%. Our focus areas are Infrastructure Development, Environment Management, Real Estate and Consultancy; as an engineering, procurement and contracting partner; as well as developing and managing the assets for long term. We have successfully executed projects for design, engineering and construction on BOT and BOOT basis, while handling more than 80 Public Private Partnership projects in the Country – one of the largest being handled by any Group, for developing infrastructure in the Country. We’re the preferred partner to government and private players alike because all our companies have implemented ISO 9000, ISO 14000, ISO 17025 and OHSAS 18000 quality systems at work, with a clear commitment to quality. In the field of Environment and Waste Management, the group has pioneered bio-medical waste and hazardous waste management facilities in India. We are now the market leaders with over 50% market share in Solid Waste Management (SWM) with 60 projects on ground/under setup including medical waste management, hazardous waste management and municipal waste management. As a specialist firm in infrastructure engineering design, consultancy and contracting, we have a track record of successful projects in the areas of:
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• • • • •
Water and Wastewater Buildings (Commercial and Industrial) Transport, Roads and Bridges Irrigation Projects Power Transmission and Distribution
As a developer, we also create and manage assets in the Water and Wastewater, Industrial Parks, Transportation e.g. bus terminals, roads and highways, property development through public private partnerships with Government agencies and other areas. These sustainable and socially responsible solutions to the environment are in line with our goal of embarking towards sustainable growth, all of which, we hope will carry us to a revenue stream of Rs.25,000 Crores in the next five years… with our excellent professional team, exquisite track record, commitment to quality, timely completion and global outlook, our goal looks achievable.
VISION & MISSION Ramky shall be a leading global enterprise in world class infrastructure development and environment management through sustainable growth. We shall ensure quality, reliability and continuous technology upgradation thereby enhancing the value of all (its) stakeholders. VALUES At Ramky we cherish our VALUES. We expect all our employees to internalize and uphold the Ramky Values in the way we conduct our business every day, every way.
Integrity: We will conduct our business in an open, honest and ethical manner. We will be fair and transparent in all our dealings with our customers, business partners, associates and with each other as fellow employees. Towards this, we will adopt the highest standards of professional code of ethics and personal behaviors.
Customer Satisfaction: Customers are central to our existence. We will measure our success by that of our
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Customers and will always be driven by the highest sense of quality and spirit that stands for service and delivery. Our motive is to surpass customer expectations consistently by understanding their needs and delighting them with a “service excellence” mind-set and behaviors.
Work Culture: We will be caring, respectful, compassionate and humane to all our colleagues and customers around the world. We will create a global mind-set that will help us grow and develop our employees by providing a performance driven culture that will encourage career growth and personal fulfillment. We will work together to foster a work culture that revolves around total teamwork and collaboration that brings out the best in every one of us.
Employee Sense of Belonging: This is Our Company. We will accept personal responsibility and accountability while conducting our business and performing our duties. We will build trust and empowerment by ensuring that our behaviors match our words and actions. We will remain committed to fulfilling organization goals by acting like owners, treating company assets like our own and always adding value to the success of the organization.
Innovation: Our goal is to be a trendsetter in all of our businesses. At Ramky, change has always been driven by continuous innovation in our businesses, products and processes.We are committed to ideas and innovative growth through our personal passion, reinforced by a professional mindset and by imbibing the Values we represent.
Safety, Health & Environment: We care for the environment, health, and safety of every employee, the community we serve in and the society at large. We will create a safe working environment by strict adherence to our stringent Health, Safety and Environment Policies and also be compliant to all the relevant laws of the land. We will demonstrate the highest standards of excellence in health, safety, and environmental protection for our employees, customers and communities in which we operate.
Social Commitment: We will be committed to our Corporate Social Responsibilites. We will help enrich the quality of life of the communities we serve and support programs and partnerships that address community specific needs. We will make a positive impact to the planet by
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striving to become committed corporate citizens and be sensitive to the communities, countries and environments that we serve. The Ramky group is a dynamic, large scale organization that is playing a pioneering role in developing the infrastructure sectors in India. Set up in 1994, the group today has a nation-wide presence and a turnover in excess of Rs. 4,500 Crores across three divisions. Major operations of the group are conducted through the following companies : Ramky Infrastructure Ltd. (RIL) - An infrastructure development and execution company that develops and manages projects, in addition to undertaking contract execution of government projects across the country. RIL is poised for exponential growth on the basis of orders currently on hand. Among projects directly developed by them are several BOT/BOOT projects, industrial parks and other unique assignments in the sector. As a contractor, they are responsible for several prestigious projects including roads, irrigation systems, canals, waste water and buildings. RIL has been approached by several international companies for a strategic partnership and is expected to move in this direction in the future, to utilize its opportunities better. Ramky Enviro Engineers Ltd. (REEL) - A waste management company that provides a comprehensive range of services, such as solid municipal waste, bio-medical waste and hazardous waste management services to commercial, industrial and municipal customers including recycling, collection and disposal services. Cost-effective solutions, customized projects and comprehensive resources combined with safety and regulatory compliances make it one of the most efficient players in this sector. REEL is a pioneer and leader in this concept and has international collaborations to strengthen its technology base. Their operations cover several states across the country and outside India. Ramky Estates and Farms Ltd. ( REFL) - A real estate company with the implementation of various residential and commercial projects. The company has developed several residential properties in Bangalore and is currently executing projects for high-end apartments and independent villas across major metros such as Bangalore, Hyderabad, Chennai and Vishakapatnam. Smilax Laboratories Ltd. - A research driven, vertically integrated pharmaceutical manufacturing company that manufactures Active Pharmaceutical Ingredients (APIs), API Intermediates and NDDS/Pellets for the global generics market. Smilax has incepted its journey in the world of Pharmaceuticals in the year 2005. Within three years, Smilax has become a reliable supplier of its products across the globe. Smilax has the capability of manufacturing APIs and API Intermediates in its State-of-The Art manufacturing facilities located in Hyderabad and Vishakapatnam, Andhra Pradesh, India Ramky Pharma City (India) Ltd. - A special purpose company of Ramky Group, India's foremost integrated services group that focuses on infrastructure projects, waste management and BOO/BOOT projects. Today, with our experience, we offer bulk drug & pharmaceutical companies in India and the world, a range of seamless, integrated, committed solutions to meet their manufacturing requirements from conception to
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commissioning and operations, at a new vibrant Industrial Park at Visakhapatnam, Andhra Pradesh, India. The group has grown in a deliberate and measured manner in the last 16 years and today has a strong, low-risk base. They have State-of-The-Art technology, a track record of success, time-tested relationships and a strong people base – all with very low leveraging. They follow a core, value-based philosophy that lays emphasis on long term organization building. They have offered independence and operational freedom to high quality professionals, who have therefore stayed with them and built satisfying careers. Given the national emphasis on infrastructure and the immediate opportunities available to them, Ramky is today poised to grow exponentially. We would like you to examine the opportunity of a leadership position with the group that will enable you to both contribute to and participate in their future.
History & Milestones
The Company was originally incorporated as Ramky Engineers Private Limited on 13 April 1994 to undertake construction projects. In 1998, the Company diversified into construction and began to undertake civil and environmental EPC projects. The early construction projects were primarily concentrated in the water and waste water sector. Subsequently, the Company expanded into roads, buildings, irrigation and industrial construction. The Company then decided to leverage opportunities in infrastructure construction and on 23 June 2003, Ramky Engineers Private Limited was renamed as Ramky Infrastructure Private Limited. On 24 June 2003 Ramky Infrastructure Private Limited was converted into a public limited and became Ramky Infrastructure Limited.
Calander Year Apr 1994 1995 1997 1998 2002
Milestone / Achievement • Incorporation of our Company Expanded operations to include water and waste water segment projects. • Expanded operations to include government works in addition to private contracting. • Expanded operations to include segments like buildings, irrigation, roads and industrial structures. • Expanded area of operations with projects in the states of Tamil Nadu, Karnataka, Kerala, Maharashtra, Gujarat, Rajasthan, Punjab, Delhi, Uttar Pradesh, West Bengal and Orissa.
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2003
• • •
2004
•
• 2005
• • •
• 2006
Name of our Company changed from ‘Ramky Engineers Private Limited’ to ‘Ramky Infrastructure Limited’. Entered into a PPP for infrastructure projects through Deheradun’s InterState Bus Terminal, a private sector bus terminal on a BOT basis. Amendment of Clause III of the MOA to enlarge the objects clause of our Company to include development of infrastructure facilities and waste management as the main objects. Signed concession agreement with Andhra Pradesh Industrial Infrastructure Limited for development of first Pharma City in India at Visakhapatnam, Andhra Pradesh on BOT basis under Public-Private Partnership scheme. Incorporated Ramky Pharma City (India) Limited - a Special Purpose Vehicle to carry out the development of Pharma City Received the ‘Best Contractor’ award from the Government of Rajasthan. Mr. Alla Ayodhya Rami Reddy, received the ‘Engineer of the Year Award – 2005’ from the Government of Andhra Pradesh and the Institution of Engineers (India). Received the Indian Concrete Institute’s ‘2005 Outstanding Concrete Structure Award’ for Gandhi Medical College and Hospital Complex in Hyderabad. Commenced construction of one of the Asia’s largest sewage treatment plants (172 MLD) with uplift an aerobic sludge blanket process, at Nagole Hyderabad. • Entered into a share subscription and shareholders’ agreement with SAPE and Tara India Fund III for purchase of equity shares and securities of our Company. • Expanded operations to include power transmission projects. •
2007
•
•
Commenced the developer business. Best Project Award for the Married Accommodation Project at Amritsar from Central Public Works Department, GOI.
•
Infrastructure Excellence Award 2008 in the Urban Infrastructure
•
2008
Completed the construction of the Paryatak Bhavan Complex in Hyderabad, a venture with the Andhra Pradesh Tourism Development Corporation. Launched Ramky Elsamex Hyderabad Ring Road Limited an SPV for the development and construction of the Hyderabad Ring Road, a 150m wide road cum area development corridor with an eight lane controlled access expressway.
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2009
•
2010
•
2011
•
• • •
• •
•
Category from CNBC TV18 & Essar Steel, Received an award for commendable water conserver-waste water management by the Water Digest. 80 MLD STP at Airoli,Navi Mumbai Project bagged the Essar Steel – Infrastructure Excellence Awards in the category of Urban Infrastructure given by CNBC TV18 & Essar Steel Received Water Digest Water Award under the Best water Conserver – Waste Water Management Category for 80 MLD Airoli Project in Mumbai. The Water Digest Water Award (2011) as the Distinguished Water Company for Outstanding Contribution in the Field of Water in India. Greentech Safety Award ( 2011) " GOLD AWARD "for the Outstanding Achievement in Fire & Safety Management Construction Week Awards, Editorial choice award " Contractor of the Year ", "Corporate Social Responsibility Award" and Jury Special Commendation : " Sustainable Project of the Year " Construction World Award Annual Study (2011) for the Third fastest growing Construction Company D&B Axis Infra Awards 2011 for the best projects under the categories of Urban Infrastructure Development and Public Private Partnership award. Chairman A. Ayodhya Rami Reddy Received Infra Person of the Year Award 2011 by EPC World
Quality & Safety
RIL is committed in the areas of Quality, Health, Safety and Environment intended for being an important and responsible player in the nation’s development. In its strides towards the development of construction and infrastructure sectors, RIL has brought transformation through its management systems. The Management has made convergent strategies in its systems and developments to bring sustainable growth in all its operational areas, which resulted in establishing, documenting, implementing and maintaining the Quality, Health, Environment and Safety management systems based on a choice of recognized national / international standards. The Quality Management System (QMS) of RIL is accredited to ISO 9001:2008 International standard and certified by M/s TUV India Pvt Ltd in all its operating segments and business locations. As a strategic move and also to strengthen the system further, the management has decided to establish a Health, Safety, Environment (HSE) Management System by
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implementing an Environmental Management System conforming to ISO 14001:2004 and an Occupational Health and Safety Management System conforming to OHSAS 18001:2007 standards. In view of having a robust HSE Management System (HSEMS) and a dedicated information service which enables RIL to streamline all Health, Safety and Environment related issues, RIL has taken up corporate membership from the British Safety Council, London and National Safety Council, New Delhi. The implementation of Quality and HSE policy is expected to support and sustain the Company’s excellent track record and provide further motivation for setting and achieving goals as part of the Company’s continual improvement plans.
•
QHSE Policy
•
ISO 9001:2008 Certificate
•
ISO 9001:2008 Certificate along with ZO/RO office addresses (Annexures I & II) §
Awards
In its journey of more than 15 years, RIL has won several awards and recognitions: • Chairman A. Ayodhya Rami Reddy Received Infra Person of the Year Award 2011 by EPC World. • Ramky Infrastructure Ltd has been honored with the Construction Week Awards 2011 i.e. Contractor of the year, Corporate Social Responsibility Award and also the Jury Special Commendation: “Sustainable Project of the Year " by 80 MLD Sewage Treatment Plant at Airoli • Ramky Infrastructure Ltd is also awarded as the third fastest growing construction company in 2011. • 80 MLD Sewage Treatment Plant at Airoli earned the D&B Axis Infra Awards 2011 under the categories of Urban Infrastructure Development and Pharmacity under Public Private Partnership • Ramky Infrastructure Ltd has emerged as a winner in the Gold Category of the 62
• •
• •
prestigious ‘Greentech Safety Award 2011’ for STP Belapur Project in Mumbai. Ramky Infrastructure Ltd has bagged the Water Digest ‘Water Awards 20102011’ under the Best Water Conserver - Waste Water Management Category for 80 MLD Airoli Project in Mumbai. Ramky Infrastructure Ltd has bagged the India’s most coveted water awards. The Water Digest “Water Awards 2010-11” as the “Distinguished Water Company” for outstanding contribution in the field of water in India. The award ceremony was conducted on 27th Jan’11 at The Oberoi Hotel, New Delhi and was presided by Shri Vincent Pala, Hon’ble State Minister of Water, Shri Salil Bhandari, President, PHD Chamber of Commerce, Shri Armoogum Parsuramen, Director, UNESCO and Shri A.K.Bajaj, Chairman, Central Water Commission. Ramky Infrastructure Ltd has bagged the Water Digest ‘Greentech Environment Excellence Award 2010’ under the category of Best Water Conserver – Waste Water Management for 80 MLD Airoli Project in Mumbai. Ramky Infrastructure Ltd. has emerged as a winner in the Silver Category of the prestigious "Greentech Safety Award 2010" in the Service Sector for Ramky Towers Project at Hyderabad.The award ceremony was conducted on 24 May 2010 at Cidade De Goa, presided over by Mr Digambar Kamath, the Chief Minister of Goa. Mr Ramakant Khalap, the Law Commission Chairman, Mr GMEK Raj, the Deputy Director General and DGFASLI, Ministry of Labour Employment, Government of India and Safety Experts of Global Repute Ms. Paula Harvey of the US and Mr. Lim Boon Khoon from Singapore were present. The "Most Admired Top Honor Greentech Safety Award" is presented annually by Greentech Foundation to recognize excellence in fire & safety management. It is the best to have a global recognition, a strong corporate status of the Company’s commitment to safety and the most effective method of proving the safety achievements to stakeholders.
•
Ramky Infrastructure Ltd. has bagged the Water Digest "Water Awards 20092010" under Best Water Conserver - Waste Water Management Category for 80 MLD Airoli Project at Mumbai. The award ceremony was conducted on 9th Jan'10 at The Park, New Delhi, presided over by Mr Pawan Kumar Bansal, the Minister of Parliamentary Affairs and Water Resources.
•
Ramky Infrastructure Ltd. - 80 MLD STP at AiroIi, Navi Mumbai Project has bagged the Essar Steel - Infrastructure Excellence Awards 2009 in the category of Urban Infrastructure.
•
Ramky has received Best Project Award 2007-2008 from Government of India under the "Housing-works completed during 2007-2008" category for Married
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Accommodation at Amritsar Military Station.
•
Ramky Group Chairman Mr. Alla Ayodhya Rami Reddy has received the "Engineer of the Year Award – 2005" from the Government of Andhra Pradesh and the Institution of Engineers (India).
•
The Indian Concrete Institute’s 2005 "Outstanding Concrete Structure Award" has been conferred on Ramky Infrastructure Ltd for Gandhi Medical College and Hospital Complex in Hyderabad.
•
The 2005 Best Construction Award has been given to Ramky Infrastructure Ltd by the Government of Rajasthan.
Ramky has received accolades and appreciations from various State Government Institutions for its active role in the Waste Management Division. a) Environmental Leadership Award has been given by the United States – Asia Environmental Partnership in 2004 and the Safety Health and Environment Performance Award by the Confederation of Indian Industry in 2005.
Competitive Strengths RIL believes that its principal competitive strengths are: Experience and expertise in the construction and management of Water and Waste Water Infrastructure projects: RIL believes that its experience and expertise in planning, designing and constructing Water and Waste Water Infrastructure projects is a competitive strength that differentiates the Company from many of its competitors when bidding for such projects. Constructing and operating these infrastructure projects has been a significant area of focus for the Company’s business. RIL has an in-house design and engineering team headquartered in Mumbai that specialises in designing Water and Waste Water projects. The team is equipped with the latest design tools, including design software, computers and technology. For
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example, the Company uses a sequential batch reactor technology (commonly known as C-Tech) for sewage treatment plants. It is an aerobic biological process whereby aeration, settling and decanting happen in a single tank that eliminates the inefficiencies of a continuous system like activated sludge process and extended aeration. The focus of the team enables the Company to build on its past experience in the Water and Waste Water sector and to maintain its differentiated expertise in this area. Between 1 April 2002 and 31st Dec 2011, the Company completed 113 Water and Waste Water projects valued at Rs 6450.90 million and are currently executing 91 Water and Waste Water projects of an estimated value of Rs 49422.80 million. The Company’s achievements in this area have been recognized through six awards: The Environmental Leadership Award by the United States – Asia Environmental Partnership in 2004, the Safety, Health and Environment Performance Award by the Confederation of Indian Industry in 2005, the Water Digest’s Water Awards 20092010 in the category of Best Water Conserver – Waste Water Management, the Global Greentech Environment Excellence Award 2010 in the silver category of Greentech Environment Excellence Award, and the Water Awards 2010-11 as the ‘Distinguished Water Company’ by the Water Digest .The company also bagged the Gold Category of the prestigious ‘Greentech Safety Award 2011’. The Company believes success in this sector has enhanced its reputation as a significant player in the Water and Waste Water sector. RIL provides engineering, design, procurement and construction services across its six industry sectors - Water and Waste Water; Buildings, Irrigation, Industrial construction, Transportation and Power Transmission and Distribution. This approach enables the Company to keep its construction business diversified and reduces its dependence on any one sector or type of project. In addition, the Company’s broad range of clients within the government and private sectors ensures that it is not dependent on a limited number of clients. RIL is also geographically diversified in its business operations. The Company’s five zonal offices and three regional offices enable it to service clients throughout the country and facilitate participation in projects in all regions of India. The total number of new orders for the Company’s construction business and the average order size for the construction business has been consistently growing. RIL has been consistently receiving orders for its construction business as shown in the table below. While the average order size in the construction business increased from Rs 31 million in Fiscal 2003 to Rs. 1150 million in Fiscal 2011(upto March’11), the number of orders per employee has more than doubled during the same period. Strong and diverse Order Book
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The value of RIL’s Order Book as on 30th Sep 2011 is Rs 118688.30 million. In addition, the Order Book is diversified across all the sectors. The Company’s execution capabilities have also seen steady growth and by way of leveraging on its planning and execution expertise, the Company has ensured that its orders are completed within the estimated budget and on schedule. Furthermore, the Company believes that a large order book will increase its operational efficiency by allowing it the economies of scale. Strategically positioned to realize opportunities in the infrastructure sector Infrastructure growth in India has been propelled in the past decade through reforms and benefits extended by the government, accompanied by a host of private investments. Increased allocation of resources to the infrastructure sector, facilitation of incremental lending to the infrastructure sector and increased social sector projects benefiting infrastructure development are contemplated as part of the Eleventh Five Year Plan. RIL believes that the increasing level of investment in infrastructure by the Central and State Governments and private industry will be a major growth driver for its business in the future and its demonstrated expertise and experience in the infrastructure segment will provide the Company with a significant advantage in pursuing such opportunities. The Company believes that it is in an advantageous position because of its operating history, industry knowledge, experience and familiarity with civil and infrastructure construction projects. Qualified and experienced employees and proven management team
RIL has a qualified and trained workforce consisting of vice presidents, general managers, managers, engineers, technical staff and non-technical staff. As on 31 Dec 2011, the Company had 2839 full time employees, of which 1358 are engineers, including 20 members of its management team. The skill sets of the employees give the Company the flexibility to adapt to the needs of its clients and the technical requirements of the various projects that it undertakes. The Company is committed to developing the expertise and know-how of its employees through regular technical seminars and training sessions organized or sponsored by the Company. The Company’s management team is qualified and experienced in construction and infrastructure development, and has substantially contributed to the growth of its operations. In particular, Mr. YR Nagaraja, the Managing Director, is a civil engineer who has over 24 years of project management experience. The Company believes that the strength and quality of its management has been instrumental in the implementation of its business strategy. Sustained investment in equipment and fixed assets
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RIL has invested in modern construction equipment that would facilitate in meeting the requirements of a broad spectrum of construction activities. Such an equipment base also gives the Company the capability to design and execute projects of any scale. The Company has a skilled employee resource that has the requisite expertise and experience in the use and handling of modern construction equipment and machinery. RIL believes that owning and managing a large portion of the equipment it typically uses on projects gives the Company a competitive advantage and helps it achieve higher operating margins.
:: Business Strategy RIL’s objective is to be a world class construction and infrastructure development company. To achieve the objective, the Company will continue to improve on and consolidate its position by implementing the following strategies: Focus on high value projects in the construction business to benefit from economies of scale In the construction business, the Company intends to focus on undertaking projects having a high order value of Rs 1 billion and above in value. As on March 31 2011, the Company had 53 projects in its Order Book with a value higher than Rs 10 billion. Projects with a high order value typically have a smaller percentage of overhead cost as a percentage of total cost and therefore provide a greater potential for profit. Projects with a high order value are also, in the current market, subject to less competition. The pre-qualification and financial entry barriers for pursuing such projects result in a limited number of competitors being able to bid for such projects. The Company believes that these high entry barriers make this an attractive sector to participate. As its financial condition and pre-qualification capabilities have improved in recent years, the average bidding value of the Company has steadily increased. This demonstrates the increasing ability to bid for and undertake high value projects. RIL aims to firmly establish itself as a player in the large order size sector by successfully executing high order value projects so that the Company can take advantage of these higher barriers to entry, lower levels of competition and higher profit margins. Diversify the Company’s construction business into more complex and multidisciplinary projects, which tend to have a higher contract value and the potential for better margins. Leveraging on its existing engineering and execution capabilities in diverse areas such as civil, structural, piping, water treatment and electrical engineering, RIL intends to
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undertake more complex and multi-disciplinary projects such as power transmission and distribution projects, industrial construction projects and airport terminals. Complex and multi-disciplinary projects tend to have higher contract values compared with complex and sector specific projects on a less scale, and also offer the potential to realize better margins. RIL is currently constructing its first power transmission and distribution project in Madhya Pradesh, its first major industrial construction project in Orissa and also its first airport terminal at Chandigarh through 70:30 joint venture collaboration with Srishti Constructions. Enhance its design capabilities RIL currently has design capabilities for the Water and Waste Water and Irrigation sectors, which enable the Company to provide turnkey construction services in these sectors. The Company intends to enhance its design capabilities in other sectors such as the Institutional Building Construction and Transportation sectors in order to extend turnkey services. Reduce costs of materials through backward integration and importation The construction industry is subject to periodic shortfalls in the supply of bulk construction materials such as cement, steel, concrete and pipes. To address this shortfall, the Company is pursuing two strategies. First, the Company seeks to reduce supply costs by importing supplies from overseas suppliers at a less price. Second, the Company has in-house capabilities to produce certain construction materials, such as mixed concrete, aggregates and asphalt, which would enable it to control the quality of the materials used and ensure timely delivery of materials required for the projects undertaken. Achieve higher operating margins by acquiring further capital equipment and other strategic assets The Company’s strategy is to continue to acquire core equipment that is required for the projects. The continued acquisition of such equipment will enable the Company to achieve higher operating margins. . Expand RIL’s developer business by undertaking more projects in the sectors in which the Company is already engaged In recent years the Government has laid more emphasis on infrastructure development through enhanced Five-Year Plan allocation and encouraging PPPs. PPPs offer significant advantages in terms of attracting private capital in the creation of public infrastructure as well as in improving efficiencies in the provision of services to users. BOT/BOOT/BOO projects offer attractive opportunities to developers because such projects provide long-term sources of revenue. Concession periods for BOT/BOOT/BOO projects generally range from 15-99 years. To take advantage of
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such opportunities, RIL has leveraged its experience in construction business to establish a developer business. In Fiscal 2009, the developer business generated Rs. 817.60 million in revenue and as on 31st March 2011, the Company’s developer business generated Rs. 6376.70 million in revenue. Thus far, the developer business has been engaged in designing, financing and building of industrial parks, residential and commercial properties, transportation terminals and roads. In addition, the Company has been actively pursuing PPP projects, particularly through its various subsidiaries. RIL believes the Company is well positioned to benefit from the continued use of the PPP model. Diversify RIL developer business into other sectors A fundamental aspect of the Company’s business strategy is to engage in projects from a range of sectors to avoid dependency on one or a few sectors. In view of BOT/BOOT/BOO projects offering long-term sources of revenue, the Company intends to apply this philosophy to its developer business. Therefore, the Company is considering diversifying its developer business into other sectors such as power, WWW, marine works, mechanized parking, and cargo& bulk handling terminals.
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CHAPTEER-4 DATA ANALYSIS & INTERPRETATION
1.
Age of the employee in between? a) 20 -25 c) 30 -40
b) 25 -30 d) 40 -50
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Table.1 SR.NO 1 2 3 4
OPTION 20 - 25 25 - 30 30 - 40 40 - 50 Total
Age group of the employees RESPONSE 38 52 8 2 100
PERCENTAGE 38% 52% 8% 2% 100%
INTERPRETATION From the above table we found that the age group of the number of employees working in RAMKY GROUPS i.e. from 20-25 is 38%, from 25-30 reaches to 52%, 30-40 is 8% and 40-50 is 2%.
2. Employee Income? a) 4000-10000
b) 10000-20000
c) 20000-30000
d) 30000 & above
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Table.2
Income of the employees
SR.NO 1 2 3 4
OPTION 4000 -10000 10000 -20000 20000 -30000 30000 & above Total
RESPONSE 83 11 3 3 100
PERCENTAGE 83% 11% 3% 3% 100%
INTERPRETATION From the above data we observed the income group of the employees working in RAMKY GROUPS Where, 83% of the employees get the income of 4000-10000, 11% of them get 10000-20000, 3% of them get 20000-30000 and finally 3% of them get 30000 &above.
3. Qualification of the employee? a) 10th d) MBA
b) 10+2 e)
Table.3
c) Graduation
Fashion designer
_
Qualification of the employee
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SR.NO 1 2 3 4 5
OPTION 10th 10+2 Graduation M.B.A Fashion designer Total
RESPONSE 19 30 30 14 7 100
PERCENTAGE 19% 30% 30% 14% 7% 100%
INTERPRETATION: From the above given table we found the qualification of the employees working in RAMKY GROUPS where, 19% of them pursued S.S.C, 30% of them have pursued intermediate, 30% of them have done their graduation, 14% of them have pursued their M.BA and finally 7% of the employees belongs to fashion designing
4. Designations of the employees? a) Admin d) Team
b) Managers e) Team members
c) Fashion designer _
leaders
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SR.NO 1 2 3 4 5
OPTION Admin Manager Fashion designer Team leaders Team members Total
RESPONSE 14 7 7 6 68 100
PERCENTAGE 14% 7% 7% 6% 68% 100%
INTERPRETATION The designation of the employees working in RAMKY GROUPS is found from the above given table, i.e.14% of the employees are into Administration department,7% of them are Managers, 7% of them are fashion designers, 6% of them are into team leaders and 68% of them are Team members.
5. How long have you been associated with the company? a) Before 6 months
b) 6 months – 4 years
c) 4 – 8 years
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d) 8- 12 years
Table.5 SR.NO 1 2 3 4 5
e) 12 years and above
_
Service of Employees OPTION Before 6 months 6 months- 4 years 4-8 years 8-12 years 12 years and above Total
RESPONSE 21 60 12 3 4 100
PERCENTAGE 21% 60% 12% 3% 4% 100%
INTERPRETATION From the above information, the employees associated in the company so called RAMKY GROUPS is found to be 21% for the period of before 6months, from 6months4years it is 60%, form 4-8years it is 12%, from 8-12years it is 3% and at last for 12years and above it is 4%.
6. Are you satisfied with the salary/perk structure prevailing in your company? a)Extremely
b) Satisfied
Satisfied d) Dissatisfied
e) Extremely dissatisfied
c) Neutral _
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Table.6 SR.NO 1 2 3 4 5
Salary/ Perk Structure of Employees OPTION Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied Total
RESPONSE 2 68 19 11 0 100
PERCENTAGE 2% 68% 19% 11% 0% 100%
INTERPRETATION From the above data the salary /perk structure of the employees working in RAMKY GROUPS is observed that 68% of the employees are satisfied with their perks, 19% of them are neutral, 11% of them are dissatisfied, 2% of the employees are extremely satisfied. So! The company needs to improve the employees’ salaries to reach their satisfaction level. 7. How are your interpersonal relations with your colleagues, subordinates and managers? a) Extremely Satisfied d) Dissatisfied
Table.7
b) Satisfied e) Extremely dissatisfied
c) Neutral _
Interpersonal Relations
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SR.NO 1 2 3 4 5
OPTION Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied Total
RESPONSE 16 80 3 0 1 100
PERCENTAGE 16% 80% 3% 0% 1% 100%
INTERPRETATION From the above information given about the interpersonal relations of the colleagues, subordinates and managers working in RAMKY GROUPS is observed where 80% of the employees are satisfied, 16% of them are extremely satisfied, 3% of the employees are neutral and finally 1% of the employees are extremely dissatisfied 8.
Do you have a clear path of Career Advancement? a) Yes
Table.8 SR.NO 1 2
b) No
Clear Path of Advancement OPTION Yes No Total
RESPONSE 89 11 100
PERCENTAGE 89% 11% 100% 77
INTERPRETATION From
the
above given table regarding the
clear
path of career advancement of the employees working in RAMKY GROUPS, the response of the employees is found that 89% of them said ‘YES’ and 11% of them said ‘NO’.
9.
How do you find the working conditions (facilities/physical environment) of your company?
a) Extremely Satisfied d) Dissatisfied
Table.9 SR.NO
b) Satisfied
c) Neutral
e) Extremely Dissatisfied
_
Working conditions of RAMKY GROUPS OPTION
RESPONSE
PERCENTAGE
1
Extremely Satisfied
11
11%
2
Satisfied
74
74%
3
Neutral
8
8%
4
Dissatisfied
7
7%
5
Extremely Dissatisfied
0
0%
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Total
100
100%
INTERPRETATION From the above table the working conditions of the employees working in RAMKY GROUPS is found that 74% of the employees are satisfied, 11% of them are extremely satisfied,8% of them are neutral and finally 7% of the employees are dissatisfied with the working conditions.
10. Do you find this organization as a better place for your Career Development? Yes
Table.10 SR.NO 1 2
b) No
Career Development OPTION Yes No Total
RESPONSE 81 19 100
PERCENTAGE 81% 19% 100%
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INTERPRETATION From the above information the response of the employees regarding career development who are working in RAMKY GROUPS is observed where 81% of the employees responded as ‘YES’ and 19% of them responded as ‘NO’.
11.
How often your achievements are recognized and are they awarded in your
company? a) Most Frequently d) Rarely
Table.11 SR.NO 1 2 3
b) Frequently
c) Sometimes
e) Never
_
Recognition of Awards and Achievements OPTION Most Frequently Frequently Sometimes
RESPONSE 5 56 21
PERCENTAGE 5% 56% 21%
80
4 5
Rarely Never Total
14 4 100
14% 4% 100%
INTERPRETATION :From the above given table the recognition of awards and achievements to the employees working in RAMKY GROUPS is observed where 56% of awards and achievements of the employees is recognized to be ‘frequently’, 21% is recognized for ‘sometimes’, 14% is recognized to be ‘Rarely’, 5% is recognized to ‘Most frequently’ and finally 4% is recognized for ‘Never’. So! The company should focus more on the employees performance and based on that the awards and recognition should be given when required 12.
How much are you Satisfied with your position in this company? a) Highly satisfied d) Dissatisfied
b) Satisfied e) Highly
c) Neither or nor _
Dissatisfied Table.12 SR.NO 1 2 3 4
Satisfaction of Employees with their Positions OPTION Highly Satisfied Satisfied Neither or nor Dissatisfied
RESPONSE 5 73 19 2
PERCENTAGE 5% 73% 19% 2%
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5
Highly Dissatisfied Total
1 100
1% 100%
INTERPRETATION From the above table, the satisfaction of employees with their positions who are working in RAMKY GROUPS is analyzed where, 73% of them are satisfied, 19% of them are ‘neither or not’, 5% of them are highly satisfied, 2% of them are dissatisfied and finally 1% is observed to be highly dissatisfied.
13.
Does your organization provide you ample resources and opportunities at work to learn and grow? Yes
Table.13 SR.NO 1 2
b) No
Resources and Opportunities OPTION Yes No Total
RESPONSE 93 7 100
PERCENTAGE 93% 7% 100%
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INTERPRETATION From the above table we observed that the resources and the opportunities provided at work place for the employees who are working in RAMKY GROUPS are analyzed where, 93% of the employees have responded with positive reply as ’YES’ and 7% of the employees responded as ‘NO’.
14. What would be your primary reasons for leaving the company? a) Benefits and Salary b) Better job opportunity elsewhere c) Conflict with co-workers/higher authority/management d) Working conditions e) Job expectation/Challenges/Growth
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Table.14
Attrition
SR.NO 1 2 3
OPTION Benefits and Salary Better job opportunity elsewhere Conflict with co-workers/higher
RESPONSE 42 32 3
PERCENTAGE 42% 32% 3%
4 5
authority Working conditions Job expectation/Challenges/Growth Total
6 17 100
6% 17% 100%
INTERPRETATION: From the above given table the working employees of RAMKY GROUPS, the primary reasons for leaving the company is analyzed where, 42% of the employees reason for quitting the job was due to benefits and salary, 32% of the employees are leaving the company due to better job opportunity elsewhere, 17% is due to job expectation/challenge/growth, 6% was due to working conditions and finally 3% is due to conflicts with coworkers/higher author
15. Is there a free flow of communication and good co-ordination among supervisors and subordinates? a) Yes
Table: 15 SR.NO 1 2
b) No
Free flows of good co-ordination and communication OPTION Yes No Total
RESPONSE 95 5 100
PERCENTAGE 95% 5% 100%
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INTERPRETATION From the above data regarding the free flow of communication and coordination among the employees who are working for RAMKY GROUPS is found that, 95% of the employees responded as ‘YES’ and 5% of them have responded as ‘NO’.
16.
How would you rate the Morale in your company? a) Very high
b) High
d) Low
e) Very Low
Table. 16
Morale of the Company
SR.NO 1 2 3 4
OPTION Very High High Moderate Low
c) Moderate
RESPONSE 2 74 23 1
PERCENTAGE 2% 74% 23% 1% 85
5
Very Low Total
0 100
0% 100%
INTERPRETATION From the above data the employee’s rate of morality who are working in RAMKY GROUPS is analyzed where 74% of the employees get high morale, 23% of them get moderate, 2% of them get very high morale and finally 1% of them get low morale. 17.
Does the company involve the employees in decision making process?
a) Most Frequently d) Rarely Table.17 SR.NO 1 2 3 4 5
b) Frequently e) Never
c) Sometimes
Employees involved in Decision-making Process OPTION Most Frequently Frequently Sometimes Rarely Never Total
RESPONSE 4 61 23 9 3 100
PERCENTAGE 5% 61% 23% 9% 3% 100%
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INTERPRETATION: From the above data the employees involvement in decision making process is been analyzed where 61% of
the employees get into it ‘frequently’, 23% of them get
‘sometimes’, 9% of the employees get it ‘rarely’ 5% of the employees get it ‘most frequently’ and 3% of the employees ‘Never’. 18. Are you satisfied with the company? a) Highly satisfied
b) Satisfied
d) Dissatisfied
c) Neither or nor
e) Highly Dissatisfied
Table.18 SR.NO 1 2 3 4 5
Employees Overall Satisfaction with Company OPTION Highly Satisfied Satisfied Neither or nor Dissatisfied Highly Dissatisfied Total
RESPONSE 0 93 4 3 0 100
PERCENTAGE 0% 93% 4% 3% 0% 100%
INTERPRETATION
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From the above data the satisfaction of the employees working in RAMKY GROUPS is observed where 93% of the employees are satisfied, 4% of them are neither or nor satisfied and 3% of them are dissatisfied
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CHAPTER-5
FINDINGS SUGGESTIONS AND CONCLUSIONS
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Findings of the study
1. The study reveals that most of the employees are working with the organization for more than 12 years. 2. From the Analysis it is found that 2% employees are extremely satisfied and 68% employees are satisfied with their salary/perk structure. 3. It is observed from the study that interpersonal relations among employees and managers are praiseworthy. 4. From the study it is found that 89% employees are satisfied with the career path. 5. The study reveals that 74% employees are satisfied with the working conditions. 6. From the study 56% employees said that their company Frequently 7. recognizes their performances. 8. It is observed from the study that 73% employees are satisfied with their positions/designations. 9. 93% respondents said they have been provided with ample resources and opportunities at work. 10. From the study 95% employees feel that there is free flow of communication channels and good coordination between superiors and subordinates. 11. From the study 75% of employees feel that they are not involved in decisionmaking.
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SUGGESTIONS •
The company shall take steps to recognize the employee’s achievements and they may reward immediately to improve morale to boost the productivity levels. Otherwise, the employees will be disgusted and their morale levels will be decreased causing dip in productivity levels of the company
•
The Company shall take further steps to enrich the career development schemes.
•
The company shall take certain measures to further involve the employees in decision making.
•
The company can further improve the morale rate of the employees by using the concepts of various HR interventions.
•
The organization has to provide equitable and fair remuneration to the employees so that they can retain valuable employees.
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CONCLUSIONS
•
The employees in the company are satisfied with perks/salary structure, working conditions, communication channels, and personal relation
•
The values of the employees in the organization are also praiseworthy. Their motivation levels are also high
•
Every employee in the organization are satisfied with the existing jobs and dedicated to the organization. Hence, all the employees are working hard and stayed with the organization as a result of the commitment
•
Based on the existing personnel policies, incentive schemes and facilities, the employees are more committed to the organization for achieving the organization goals by improving the productivity levels.
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BIBLIOGRAPHY Webliography: • • • •
• • • • • • • • • •
http://www.oppapers.com/essays/Campbell-Soup-EmployeeEngagement/381410 http://www.scribd.com/doc/44429205/A-Project-Report-on-EmployeeEngagement http://www.davidzinger.com/wp-content/uploads/Top-Tens-ofEmployee-Engagement.pdf http://books.google.co.in/books? id=JG91GyqLg4YC&printsec=frontcover&dq=employee+engagement &hl=en&sa=X&ei=3ppTT7yOOMzQrQed25i3Ag&ved=0CEQQ6AE wAg#v=onepage&q=employee%20engagement&f=false http://www.thesocialworkplace.com/2011/12/15/employeeengagement-is-not-a-buzz-word-its-a-positive-attitude/ (handling mon employee) http://www.slideshare.net/hrtalksblog/employee-engagement-intodays-business-senerio http://www.slideshare.net/mamata.sampath/hr-present-scenario http://www.bs-muc.de/aktdoku/report.pdf http://www.causerelatedlearning.co.uk/strategies-for-employeeengagement/ www.gallup.com Employee Engagement Overview Brochure Employee_Engagement_Overview_Brochure.pdf http://www.siescoms.edu/images/pdf/reserch/working_papers/employe e_engagement.pdf http://www.hciproject.org/sites/default/files/Questionnaire%20on %20Employee%20Engagement.pdf
Mgazines • •
HRM business magazine HRM business magazine
Text books
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• Subba rao
CHAPTER-6 QUESTIONNIERS
94
Questionnaire
1.
NAME:
DESIGNATION:
DEPARTMENT:
QUALIFACTION:
Age of the employe in between? a) 20-25
b) 25-30
c) 30-40
b) 10000-20000
c) 20000- 3000
d) 40-50 2. Employee Income in between? a) 4000-10000 d) 30000 & above 3. How long have you been associated with the company? a) Before 6 months d) 8- 12 years
b) 6 months – 4 years
c) 4 – 8 years
e) 12 years and above
4. Are you satisfied with the salary structure prevailing in your company? a) Extremely Satisfied
b) Satisfied
d) Dissatisfied
e) Extremely dissatisfied
c) Neutral
95
5. How are your interpersonal relations with your colleagues, subordinates and managers?
6.
a) Extremely Satisfied
b) Satisfied
d) Dissatisfied
e) Extremely dissatisfied
Do you have a clear path of Career Advancement? a) Yes
7.
8.
b) No
How do you find the working conditions (facilities/physical environment) of your company? a) Extremely Satisfied
b) Satisfied
d) Dissatisfied
e) Extremely Dissatisfied
c) Neutral
Do you find this organization as a better place for your Career Development? Yes
9.
c) Neutral
b) No
How often your achievements are recognized and are they awarded in your company?
10.
11.
a) Most Frequently
b) Frequently
d)
e) Never
Rarely
c) Sometimes
How much are you Satisfied with your position in this company? a) Highly satisfied
b) Satisfied
d) Dissatisfied
e) Highly Dissatisfied
c) Neither or nor
Does your organization provide you ample resources and opportunities at work to learn and
grow? a) Yes 12.
b) No
What would be your primary reasons for leaving the company? a) Benefits and Salary
b) Better job opportunity elsewhere
c) Conflict with co-workers/higher authority/management d) Working conditions
e) Job expectation/Challenges/Growth
96
13.
Is there a free flow of communication and good co-ordination among supervisors and subordinates? a) Yes
14.
How would you rate the Morale in your company? a) Very high d) Low
15.
b) High
c) Moderate
e) Very Low
Does the company involve the employees in decision making process? a) Most Frequently d) Rarely
16.
b) No
b) Frequently e)
c) Sometimes
Never
Are you satisfied with the company? a) Highly satisfied
b) Satisfied
d) Dissatisfied
e) Highly Dissatisfied
c) Neither or nor
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