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Capstone Project Report
A study on relationship between HRD climate and employee
engagement of service sector employees in the region of
Jalandhar(Punjab)
Submitted to LOVELY PROFESSIONAL UNIVERSITY
In partial fulfillment of the
Requirements for the award of Degree of
Master of Business Administration
Submitted by: Research Supervisor:
Tappin Sood(Reg No 3020070050) Miss Ridhi Arora
Deepee Danwra (Reg no 3020070013)
Isha Sachar (Reg no 3020070222)
Vrinda Sethi (Reg no 3020070038)
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
(2010-2012)
CERTIFICATE
This is to certify that Deepee Danwra bearing Registration no. 3020070013 has
completed his capstone project titled, “A study on relationship between HRD
Climate and Employee Engagement of service sector in the region of Jalandhar”
under my guidance and supervision. To the best of my knowledge, the present
work is the result of his original investigation and study. No part of this report has
ever been submitted for any other degree at any University.
The capstone report is fit for submission and the partial fulfillment of the
conditions for the award of Master of Business Administration.
Signature and Name of the Research Supervisor
Designation
School
Lovely Professional University
Phagwara, Punjab.
Date:
CERTIFICATE
This is to certify that Isha Sachar bearing Registration no. 3020070222 has
completed his capstone project titled, “A study on relationship between HRD
Climate and Employee Engagement of service sector in the region of Jalandhar”
under my guidance and supervision. To the best of my knowledge, the present
work is the result of his original investigation and study. No part of this report has
ever been submitted for any other degree at any University.
The capstone report is fit for submission and the partial fulfillment of the
conditions for the award of Master of Business Administration.
Signature and Name of the Research Supervisor
Designation
School
Lovely Professional University
Phagwara, Punjab.
Date:
CERTIFICATE
This is to certify that Tappin Sood bearing Registration no. 3020070050 has
completed her capstone project titled, “A study on relationship between HRD
Climate and Employee Engagement of service sector in the region of Jalandhar”
under my guidance and supervision. To the best of my knowledge, the present
work is the result of her original investigation and study. No part of this report has
ever been submitted for any other degree at any University.
The capstone report is fit for submission and the partial fulfillment of the
conditions for the award of Master of Business Administration.
Signature and Name of the Research Supervisor
Designation
School
Lovely Professional University
Phagwara, Punjab.
Date:
CERTIFICATE
This is to certify that Vrinda Sethi bearing Registration no. 3020070038 has
completed his capstone project titled, “A study on relationship between HRD
Climate and Employee Engagement of service sector in the region of Jalandhar”
under my guidance and supervision. To the best of my knowledge, the present
work is the result of his original investigation and study. No part of this report has
ever been submitted for any other degree at any University.
The capstone report is fit for submission and the partial fulfillment of the
conditions for the award of Master of Business Administration.
Signature and Name of the Research Supervisor
Designation
School
Lovely Professional University
Phagwara, Punjab.
Date:
DECLARATION
I, Deepee Danwra, student of Master of Business Administration under
Department of Management of Lovely Professional University, Punjab, hereby
declare that all the information furnished in this capstone project report is based on
my own intensive research and is genuine.
This report does not, to the best of my knowledge, contain part of my work which
has been submitted for the award of my degree either of this university or any other
university without proper citation.
Date : Deepee Danwra
Reg no. 3020070013
DECLARATION
I, Isha Sachar, student of Master of Business Administration under Department of
Management of Lovely Professional University, Punjab, hereby declare that all the
information furnished in this capstone project report is based on my own intensive
research and is genuine.
This report does not, to the best of my knowledge, contain part of my work which
has been submitted for the award of my degree either of this university or any other
university without proper citation.
Date : Isha Sachar
Reg no. 3020070222
DECLARATION
I,Tappin Sood, student of Master of Business Administration under Department of
Management of Lovely Professional University, Punjab, hereby declare that all the
information furnished in this capstone project report is based on my own intensive
research and is genuine.
This report does not, to the best of my knowledge, contain part of my work which
has been submitted for the award of my degree either of this university or any other
university without proper citation.
Date : Tappin Sood
Reg no. 3020070050
DECLARATION
I, Vrinda Sethi, student of Master of Business Administration under Department of
Management of Lovely Professional University, Punjab, hereby declare that all the
information furnished in this capstone project report is based on my own intensive
research and is genuine.
This report does not, to the best of my knowledge, contain part of my work which
has been submitted for the award of my degree either of this university or any other
university without proper citation.
Date : Vrinda Sethi
Reg no. 3020070038
ACKNOWLEDGEMENT
We deem it a great privilege to thank all those people who helped us to complete this
project work. We express our sincere thanks to the management of the LOVELY
PROFESSIONAL UNIVERSITY.
We are deeply obliged to our project mentor Ms. Ridhi Arora, without whose guidance
and encouragement at all levels, the study wouldn‟t have been completed. Also, we do
thank and remember my family and friends for their effort and helping hand.
We express our profound thanks to our project guide for giving us valuable advice and
guidance and sparing valuable time in clarifying various points raised by us.
Every effort has been made to enhance the quality of work. However, we owe the sole
responsibility of the shortcoming, if any, in the study
ISHA SACHAR
DEEPEE DANWRA
TAPPIN SOOD
VRINDA SETHI
TABLE OF CONTENT
Serial
number
Topic Page number
1. Abstract 1
2. Significance of the study 2
3. Scope of the study 3
4. CHAPTER 1: Introduction
1.1: HRD Climate
1.2:Need for HRD
1.3:Components of HRD Climate
1.4:Measuring HRD Climate
1.5:Employee Engagement
1.6: Relationship of employee engagement with other
dimensions
1.7: A framework of employee engagement
1.8: Relationship between HRD climate and employee
Engagement
4-6
6-7
8-9
10
11-13
13-15
15-16
17-18
5. CHAPTER 2: Review of Literature 19-28
6. CHAPTER 3: Research Methodology
3.1:Objective of the study
3.2:Hypothesis
3.3:Data Collection
3.4:Sample Size
3.5:Sampling Technique
3.6:Data Analysis
29
29
29-30
30
30
30
7. CHAPTER4:Analysis and Interpretation 31-35
8. CHAPTER5:Findings 36-38
9. CHAPTER6:Conclusion 39-40
10. CHAPTER7:Limitations of the study 41
11. CHAPTER8:Suggestions 42
12. References 43-46
13. Appendices
ABSTRACT:
In today‟s world of cut throat competition, it has become very much vital for organizations to
nurture, develop and engage their talent in the best manner. Employee engagement can be
defined as the degree to which a person is emotionally attached with the organization. Employee
engagement is strongly related to business outcomes. Greater the employee engagement; greater
is the productivity of the organization. Hence, management consultants and practitioners are
putting immense efforts to enhance the employee engagement among their employees. Also, a
relationship exist between HRD Climate and Job satisfaction, organizational commitment and
many other factors which ultimately results in engagement of employees in their work. The
purpose of the study was to measure the relationship between HRD Climate and Employee
engagement among service sector Employees. To conduct this study data was obtained through
the administration of questionnaires among the service sector employees of the organizations
located in the region of Jalandhar. After the data collection analysis was done by using statistical
tool of Pearson correlation analysis to get the findings of the study. The various dimensions of
HRD Climate as given by T.V.Rao was observed individually and it showed that there exists a
positive correlation between employee engagement and HRD climate of service sector
employees. The study will be helpful in enhancing employee engagement among service sector
employees and understanding about HRD climate of the organizations. Moreover, it will add
value in managing the productivity level, employee absenteeism and turnover in the
organizations.
SIGNIFICANCE OF THE STUDY:
In recent years, HRD has been focusing on ways in which organizations can have a environment
where employees would be involved or engaged in their work .It has been theorized that
systematic approaches to such activities are tied to corporate performance and survival and
therefore of value. Related discussions have established how HRD climate could be helpful in
developing employee engagement and how it is critical to ongoing organizational success and as
a key contribution from the field of HRD. Therefore, additional insight into how organizations
can create and improve workplace environments, as well as recognition of the potential impacts
of such environments on employees, is crucial for practice, research, and theory building. Such
employee attitudes include satisfaction, motivation, and retention as they relate to overall
working. Despite these related findings, no available studies have explored relationship between
two. A better understanding of this relationship will contribute to theory and practice in HRD
and provide further insight into the influence of organizational learning culture on employee
engagement with different factors i.e. productivity, absenteeism and performance of employees.
SCOPE OF THE STUDY:
Employee engagement has become the topmost challenge for the majority of the organizations of
the world. Past research studies indicate the influence of HRD climate on the job satisfaction and
performance of employees working in the organizations. Still there is significant room for
research to be conducted in Indian context to demonstrate the relationship between employee
engagement and HRD climate. The purpose of the study was to investigate the relationship
between employee engagement and HRD climate. The scope of the study was restricted to the
region of Jalandhar city and the data collection was done through administration of
questionnaires among the service sector employees by targeting 3-4 organizations located in the
region of Jalandhar.
CHAPTER 1 : INTRODUCTION
1.1 HRD Climate -
If we need to find a way to develop employees in order to become effective contributors to the
goals of an organization, we need to have a clear view of what an effective contribution would
look like. The use of personal capacities can be very helpful in describing the way in which an
effective employee should operate and behave, but there can be no general prescription of an
effective employee. Effectiveness will differ with organizational context, and on whose
perspective we are adopting. The matter of what, finally, makes an effective employee is a
combination of personality, natural capabilities, developed skills, experience and learning. The
process of enhancing an employee‟s present and future effectiveness is called development.
Meaning of HRD Climate
HRD is mainly concerned with developing the skill, knowledge and competencies of people and
it is people-oriented concept. When we call it as a people-oriented concept the question of people
being developed in the larger or national context or in the smaller organizational context? Is it
different at the macro and micro level? HRD can be applied both for the national level and
organizational level.
But many personnel managers and organizations view HRD as synonymous to training and
development. Many organizations in the country renamed their training departments as HRD
departments. Surprisingly some organizations renamed their personnel department as HRD
departments. Some educational, institutions started awarding degrees and diplomas in HRD even
though the concept is not yet crystal clear.
HRD from organizational point of view is a process in which the employees of an organization
are helped/motivated to acquire and develop technical, managerial and behavioral knowledge,
skills and abilities, and mould the values, beliefs, attitude necessary to perform present and
future roles by realizing highest human potential with a view to contribute positively to the
organizational, group, individual and social goals.
A comparative analysis of these definitions shows that the third definition seems to be
comprehensive and elaborate as it deals with the developmental aspects of all the components of
human resources. Further, it deals with all types of skills, the present and future organizational
needs and aspect of contribution to not only organizational also other goals.
The analysis of the third definition further shows that there are three aspects, viz.,
1. Employees of an organization are helped/motivated;
2. Acquire, develop and mould various aspects of human resources; and
3. Contribute to the organizational, group, individual and social goals.
The first aspect deals with helping and motivating factors for HRD.These factors may be called
as Enabling factors which include Organization structure, organizational climate, HRD climate,
HRD knowledge and skills to managers, human resource planning, recruitment and selection.
The second aspect deals with the techniques or methods which are the means to acquire develop
and mould the various human resources.These techniques include: Performance, appraisal,
Potential appraisal, Career planning and Development, Training, Management development,
Organizational development, Social and Cultural programs, and Workers participation in
management and quality circles.
The third category includes the outcomes contribution of the HRD process to the goals of the
organization, group, individuals and the society.
HR means employees in organization, who work to increase the profit for organization, it is
acquisition of capabilities that are needed to do the present job, or the future expected job.
After analyzing Human Resource and Development we can simply state that, HRD is the process
of helping people to acquire competencies.
Climate, this is an overall feeling that is conveyed by the physical layout, the way employees
interact and the way members of the organization conduct themselves with outsiders. (It is
provided by an organization.)
An organization became dynamic and growth oriented if their people are dynamic and pro-
active. Through proper selection of people and by nurturing their dynamism and other
competencies an organization can make their people dynamic and pro-active. To survive it is
very essential for an organization to adopt the change in the environment and also continuously
prepare their employees to meet the challenges; this will have a positive impact on the
organization.
1.2 Need for HRD
Top to Bottom Effort: - Organization is considered to be complete organization after including
top authority to bottom line of workers and whenever we talk about development organizational
level effort is needed from top level to bottom level. Top authority should not have thinking in
their mind that their task is to only take decisions but they should also emphasized on proper
implementation of decision by adopting various controlling technique. Bottom level workers
should have loyal mind-set towards their organization. Bottom level workers have to work with
dedication. They should have realisation that organization is their organization.
Motivator role of Manager and Supervisor:- To prepare Human Resource Development
Climate, Manager and Supervisor‟s responsibilities are more or we can say that they are the key
players. Manager and Supervisors have to help the employees to develop the competencies in the
employees. To help the employees at lower level they need to updated properly and they need to
share their expertise and experience with employees.
Faith upon employees:- In the process of developing HRD Climate employer should have faith
on his employees capabilities. Means whatever amount is invested that should be based on
development of employees. Top management should trust the employees that after making huge
effort to develop employees, employees will work for the well being of organization and for
human being also.
Free expression of Feelings : - Whatever Top management feels about employees they have to
express to employees and whatever employees think about top management it must be express in
other words we can say that there should not be anything hidden while communication process.
Clear communication process will help to establish the HRD Climate.
Feedback:- Feedback should be taken regularly to know the drawbacks in system. This will help
to gain confidence in employees mind. Employee will trust on management and he can express
his opinion freely which is very good for HRD Climate. Feedback will help to remove the
weakness.
Helpful nature of employees: - Whenever we talk about 100% effort then we have to talk about
employees effort too. Nature of employees should be helping for management and for its
colleagues. They should be always read to help to customers too.
Supportive personnel management: - Personnel policies of organization should motivate
employees to contribute more from their part. Top management‟s philosophy should be clear
towards Human Resource and its well being to encourage the employees.
Encouraging and risk taking experimentation: - Employees should be motivated by giving
them authority to take decision. This concept is risky but gradually it will bring expertise in
employees to handle similar situation in future. It will help to develop confidence in employees
mind. Organisation can utilize and develop employees more by assigning risky task.
Discouraging stereotypes and favouritism: - Management need to avoid those practices which
lead to favouritism. Management and Managers need to give equal importance. Those people
who are performing good they need to appreciated and those who are not performing good they
need to be guided. Any kind of partial behaviour should be avoided.
Team Spirit:- There must be feeling of belongingness among the employees, and also
willingness to work as a team.
1.3 Components of HRD Climate
The HRD climate consists of:-
1. HRD Mechanism:
HRD Mechanism of any organization includes the basic human resource activities which are
carried on in any organization to make the employees and the work more effective. These
activities includes Counseling ,Coaching ,Training & development ,Performance appraisal
,Potential appraisal ,Career planning and development and Organizational development . These
mechanisms motivate the employee to make the work more effective and in an efficient way.
2. General Climate:
General Climate of any organization means the environment which is being provided to the
employees. This climate actually affects the working of employees. The climate if provided good
to the employees gives positive output as in such type of organization the employees are highly
engaged. The general Climate includes reporting relationship, the policies, the belief and other
activity.
3. OCTAPAC Culture:
The OCTAPAC Culture of organization includes openness, confrontation,trust,authenticity,pro-
activity,autonomy and collaboration.
Openess: means a culture where Employees feel free to express their ideas & the organization is
willing to take risks & experiment with new ideas & new ways of doing things. The degree of
openness of the organization is an important factor in determining the nature of various
dimensions of HRD being designed.
Confrontation (A bold challenge) : means that employees faces the problems & work jointly with
others concerned to find its solution. They face the issues squarely without hiding them or
avoiding them for fear of hurting each other.
Trust : A minimum level of trust may be deemed necessary for the introduction of the
performance appraisal system and other elements of HRD. Employees department & groups trust
each other & can be relied (trust) upon to „do‟ whatever they say they will.
Authenticity: Authenticity is the value underlying trust. It is the willingness of a person to
acknowledge the feelings he/she has, and accept himself/herself as well as others who relate to
him/her as persons.
Pro-activity (actively thinking in advance) : Employees are action – oriented, willing to take
initiative & show a high degree of Pro-activity. They anticipate issues and act or respond to the
needs of the future.
Autonomy: Autonomy is the willingness to use power without fear, and helping others to do the
same. Employees have some freedom to act independently within the boundaries imposed by
their role/job.
Collaboration: Collaboration involves working together and using one another‟s strength for a
common cause. Individuals, instead of solving their problems by themselves, share their
concerns with one another & prepare strategies, work out plans of action, & implement them
together.
1.4 Measuring HRD Climate
Economic condition – An organisation‟s economic condition influences its culture in several
ways. The more prosperous an organisation is the more it can afford to spend on research and the
more it can afford to risk and be adventurous.
Leadership Style - An organisation leadership style plays a profound role in determining several
aspects of its culture. An authoritarian style may make the organisation‟s culture characterized
by high position structure, low individual autonomy, low reward orientation, low warmth and
support and so on, or it may be opposite, like goal directed leadership.
Managerial assumption about human nature : -Every act on the part of the management that
involves human beings is predicated upon assumptions, generalizations and hypotheses relating
to human behaviour. There are two theories of behaviour (Theory X and Theory Y).
Managerial values and ethos :The feeling of managers about norms and values what is good
and what is poor as management practice. There are few dimensions on which it can be checked.
They are – self-awareness, risk-taking, participation, bureaucracy, equity, employee‟s security
and growth.
Organisation size : - An small organizations there are few levels of management, these are
generally more amenable to democratic and participative functioning than big organisations.
There exist an open communication system in small organisations. Hence these organisations
have a different type of climate than what are in big organizations.
1.5 Employee Engagement
Employee Engagement is a barometer measuring the association of the person in the
organization. The degree of Employee Engagement affects an individual‟s physical and mental
health. Since Employee Engagement is a type of mental feeling, its favorableness or
unfavourableness affects the individual psychologically which ultimately affects his physical
health. Employee Engagement has a variety of effect including an individual‟s physical and
mental health, productivity, absenteeism, and turnover. It can be seen as a combination of
commitment to the organization and its values plus a willingness to help out colleagues
(organizational citizenship).Employers today are using many methods to analyze the engagement
of employees(survey, feedback, performance appraisal etc.). Engagement is not about driving
employees to work harder, but about providing the conditions under which they will work more
effectively – or in other words, it is about releasing employees‟ discretionary behavior. This is
more likely to result from a healthy work life balance than from working long hours.
Engagement can be said to have three dimensions:
Emotional engagement - being very involved emotionally with one‟s work
Cognitive engagement - focusing very hard whilst at work
Physical engagement - being willing to „go the extra mile‟ for your employer
Different groups of employees are influenced by different combinations of factors, and managers
need to consider carefully what is most important to their own staff. Adopting an effective
engagement strategy can provide an opportunity for HR practitioners to acquire new skills and
work alongside professionals in other parts of the business, including those responsible for
marketing and corporate social responsibility. In order to engage their employees employers
should consider following things:
Allowing people the opportunity to feed their views and opinions upwards is the single
most important driver of engagement
keeping employees informed about what is going on in the organisation is critical
employees need to see that managers are committed to the organisation in order to feel
engaged
Having fair and just management processes for dealing with problems is important in
driving up levels of performance.
Engaged employees are more likely to act as organizational advocates than disengaged
employees and can play a powerful role in promoting their organization as an employer of
choice. Research confirms however that there is a significant gap between levels of engagement
found among employees and those that would produce optimum performance. HR professionals
need to recognize that engagement is a strategic issue that cannot simply be left to manage itself.
Organizations should review their communications and particularly their arrangements for
listening to employee opinions. Line managers need support in designing challenging jobs and
managing effective teams.
Numerous definitions of engagement can be derived from the practice- and research driven
literatures. Additional definitions can be attributed to folk theory: the common intuitive sense
that people, and particularly leaders within organizations, have about work motivation. Common
to these definitions is the notion that employee engagement is a desirable condition, has an
organizational purpose, and connotes involvement, commitment, passion, enthusiasm, focused
effort, and energy, so it has both attitudinal and behavioral components. The antecedents of such
attitudes and behaviors are located in conditions under which people work, and the consequences
are thought to be of value to organizational effectiveness. As a folk theory, engagement is used
in a manner that implies the opposite of disengagement.
For example, a number of popular views of engagement suggest that engaged employees not
only contribute more but also are more loyal and therefore less likely to voluntarily leave the
organization.
However, for present purposes, we choose to focus on only those aspects of engagement that
have positive valence (obviously from low to high). We believe that this is crucial to developing
conceptual precision in that it maintains a clear intentional focus on benefits that inure to the
organization. For example, certain behaviors that might be considered adaptive on the part of the
individual (e.g., taking a „„mental health day‟‟ as a form of adaptive withdrawal) would not be
considered within the present framework. At least temporarily, we are not taking a position on
whether engagement and disengagement are opposites (i.e., perhaps the opposite of engagement
is „„non engagement‟‟ rather than disengagement or perhaps even burnout; Gonzalez-Roma,
Schaufeli, Bakker, & Lloret, 2006). Rather, we simply choose to arbitrarily exclude from
consideration models of behavior that focus on withdrawal, maladaptive behavior, or other
disengagement phenomena.
1.6 Relationship of Engagement with various Dimensions
Engagement as satisfaction:
To some, engagement and satisfaction are linked directly if not regarded as completely
isomorphic. Thus, Harter et al. explicitly referred to their measure as „„satisfaction-engagement‟‟
and defined engagement as „„the individual‟s involvement and satisfaction with as well as
enthusiasm for work‟‟.
Engagement as commitment:
Some practitioners define engagement in terms of organizational commitment. For example,
Wellins and Concelman suggested that „„to be engaged is to be actively committed, as to a
cause.‟‟ The Corporate engagement when it is conceptualized as positive attachment to the larger
organizational entity and measured as a willingness to exert energy in support of the
organization, to feel pride as an organizational member, and to have personal identification with
the organization.
Engagement as job involvement:
At a casual level, job involvement as a construct clearly occupies a portion of the conceptual
space labelled state engagement. Indeed, as indicated earlier, Harter et al. specifically equated
engagement with both satisfaction and involvement. Similarly, building on the work of Lodahl
and Kejner, Cooper-Hakim and Viswesvaran defined job involvement „„as the degree to which
an employee psychologically relates to his or her job and the work performed therein‟‟ and
specifically equated job involvement and job commitment. Similarly, in his review and meta-
analysis of job involvement, Brown indicated that a „„state of involvement implies a positive and
relatively complete state of engagement of core aspects of the self in the job‟‟.
Engagement as psychological empowerment:
Psychological empowerment has been treated within both two- and four dimensional framework.
Within the two-dimensional framework, Mathieu et al. Suggested that empowerment is the
„„experience of authority and responsibility.‟‟ Conceptually, empowerment defined in this
manner might be considered an antecedent or a condition of engagement, and the reader can see
the conceptual slipperiness with which we are dealing. Indeed, any distinction between the state
of engagement and psychological empowerment becomes considerably less clear when
considering the four-dimensional model suggested by Spreitzer. These dimensions include
meaning (sense of purpose), competence (self-efficacy), feelings of self determination (feelings
of control), and impact (belief that one‟s efforts can make a difference). These connote a
readiness and/or an inclination toward action that fits our perspective of state engagement as
energetic.
Engagement as Positive Affectivity:
Engagement has been regarded by some as a distinct affective state. Larsen and Diener
positioned PA as halfway between (45 degrees to) the positive end of the activation dimension
and the pleasant end of the hedonic valence dimension, thus characterizing .PA as „„activated
pleasant affect‟‟ characterized by adjectives that connote both activation and pleasantness. This
distinction between PA with its high activation component and pleasantness, which is neutral
with respect to activation level, is similar to the one we made earlier when discussing satisfaction
and its relationship to engagement.
Although there is considerable ongoing debate regarding the primary dimensionality of affect,
our concern here is with regard to the descriptors (markers) used to characterize PA. PA markers
for the Positive and Negative Affect Schedule (PANAS) include among others attentive, alert,
enthusiastic, inspired, proud, determined, strong, and active, precisely the kinds of descriptors
occasionally explicitly but more often implicitly used in contemporary engagement definitions.
In keeping with Staw, Larsen and Diener, Warr, and others, these markers of PA connote high
levels of activation. This is consistent with the practitioner literature. For example, within the
popular management press, this is referred to as passion and excitement or simply emotional
engagement.
PA is variously used to describe mood states, more temporary and intense emotional states, and
as a dispositional trait, or the tendency to experience events, circumstances, and situations more
positively, further adding to the potential confusion.
1.7 A Framework for Understanding the Conceptual Space of Employee
Engagement
To move the discussion of what engagement is to a more concrete level, consider the overall
framework for understanding the various components that the engagement
construct might subsume.
Figure shows that engagement as a disposition (i.e., trait engagement) can be regarded as an
inclination or orientation to experience the world from a particular vantage point (e.g., positive
affectivity characterized by feelings of enthusiasm) and that this trait engagement gets reflected
in psychological state engagement. We conceptualize psychological state engagement as an
antecedent of behavioural engagement, which we define in terms of discretionary effort or a
specific form of in-role or extra role effort or behaviour.
Figure also shows that conditions of the workplace have both direct and indirect effects on state
and behavioural engagement. The nature of work (e.g., challenge, variety) and the nature of
leadership (especially transformational leadership) are the conditions that most interest us. Figure
shows, for example, that work has direct effects on state engagement and indirect effects as a
boundary condition (moderator) of the relationship between trait and state engagement.
With regard to leadership, Figure shows it having a direct effect on trust and an indirect effect
through the creation of trust on behavioural engagement; more on Figure later.
Framework for understanding the elements of employee engagement.
1.8 HRD Climate and Employee Engagement
HRD Climate is an integral part of organizational climate. It is the perception the employee can
have on the development environment of an organization. HRD from organizational point of
view is a process in which the employees of an organization are helped/motivated to acquire and
develop technical, managerial and behavioural knowledge, skills and abilities, and mould the
values, beliefs, attitude necessary to perform present and future roles by realizing highest human
potential with a view to contribute positively to the organizational, group, individual and social
goals.In order to analyze the HRD climate ,organization adopts following measures which
includes economic analysis ,leadership styles , organizational size, managerial values and ethos
and the skills of human resource .HRD climate is very much related with the communication
pattern in the organization. If there is a good communication style in the organization there
would definitely be a good culture to work on. HRD begins with the function of HRP i.e. human
resource planning. HRP is an integral part of HRD as it acts a bridge between HRD and other
functions of organisation including employee engagement activities of strategies. There exist a
positive relationship between employee engagement and HRD climate of the organisation.
Employee Engagement is a barometer measuring the association of the person in the
organization. The degree of Employee Engagement affects an individual‟s physical and mental
health. Since Employee Engagement is a type of mental feeling, its favorableness or
unfavourableness affects the individual psychologically which ultimately affects his physical
health. Employee Engagement has a variety of effect including an individual‟s physical and
mental health, productivity, absenteeism, and turnover. It can be seen as a combination of
commitment to the organization and its values plus a willingness to help out colleagues
(organizational citizenship).Employers today are using many methods to analyze the engagement
of employees(survey, feedback, performance appraisal etc.).
There is a linkage between HRD climate and employee engagement, If the climate of the
organization is good then employees tends to work more vigorously and with more energy.
Employee Engagement include Dedication towards work, interest ,involvement , vigorous and
commitment . Organization‟s today are providing the climate of less hierarchy, openness,
Confrontation, trust ,flexibility and empowerment which in turn not only helping the employees
to work efficiently and also developing them in reaping their career opportunities but also
benefiting the organization in dealing with the cut throat competition by making their employees
as a competitive edge over their competetitors.
Thus, those organization who are now successful are because of the loyalty and dedication of
employees due to the strong HRD climate which motivate employees to be engaged and
committed more with the organization. By analysing different researches and papers we came to
know that HRD climate and employee satisfaction, organization commitment goes hand in hand
and thus to turn a satisfied and committed employee into an engaged employee there is a need of
further study analyzing different factors of HRD climate and their relationship with overall
employee engagement.
CHAPTER-2
REVIEW OF LITERATURE
Nadler, (1970) stated that the purpose of HRD could also be seen from the perspective of the
activities or key functions in HRD. The main key functions of HRD are individual development,
organizational development, and career development and performance improvement. So HRD
could be beneficial for the organization performance and work engagement of employees
McLagan, (1983).
Paul (1974) states that research is focusing on inter-organizational and intra-organizational
behavior leads one to focus on aspects of organizations that are often over-looked when focusing
solely on behavior "within" the organization. Comparison of the situation occurring in the two
contexts, gives additional insights into the constraints that shape the social psychology of the
organizations. It is being said that HRD climate differs from organization to organization, from
production centered organizations to service centered organizations; from regional corporations
to national corporations; from national corporations to multi-national corporations and from
government organizations to non-government organizations. This study also attempts to assess
the perceived HRD climate and engagement scores across three categories of organizations and
among three levels of functions in these organizations. This is done by understanding HRD
climate differs according to the organizations and levels of functioning in these organizations.
Hellriegel &Slocum (1974), James & Jones (1974) in their study is studying about the essence of
HRD climate in relation to the outcome of HRD - that is employee engagement .It reveals three
major approaches toward measuring climate in the organizations. The first approach treats
climate as an attribute or set of attributes belonging to an organization. The second approach
treats climate as an interaction of an organization‟s characteristics and the individual's
perceptions of those characteristics. This is called perceptual measurement of organizational
attribute. The third approach to measuring climate in the organizations is termed as the
perceptual measurement-individual attribute approach.
Krishna & Rao, (1977) surveyed the organizational and HRD climate of one of the largest
engineering and manufacturing enterprises in India BHEL which shows that environment of
openness follow well among middle and senior managers in the company. This Type of climate
is important for working of the organizations as it results in effective and positive outcomes in
the organization.
Eisenberger, Fasolo and Davis-LaMastro (1990) found that increased performance and positive
work attitudes came from those employees who perceived that the HR department is concerned
about them. From a practical point of view, this suggests that Job satisfaction can be an
important barometer of HRM effectiveness. Moreover it depicts that How HRD climate is
important for any organization and how this could be improved so as to have much better results.
The impact of HRD practices on organizational level outcomes has gained importance as a
research issue. Jain, Singhal and Singh (1997) had shown encouraging results, that there exists a
significant and positive relationship between HRD climate, organizational effectiveness and
productivity. The researchers conducted studies to know the influence of the HRD climate on the
individual's attitudes and behaviors.
Rohmetra (1998) founded there exists a positive relationship between developmental climate and
the level of satisfaction of the employees. As per the study of Kumar and Pataki (2002) HRD
Climate had a positive association with job satisfaction, which gives a view that the job
satisfaction is a resultant of favorable HR practices. Frederickson (1966) Lafollette & Sims 1975
founded more consultative, open, employee-oriented employees generally result in more positive
job attitudes.
Rohmetra, (1998) conducted study on banking sector of J & K space for determining the HRD
climate and the attitudinal perceptions of 102 employees covering senior, middle and lower
managerial levels and the clerical staff. The study shows that the environment is less open for
employees. This less open environment is somewhere hampering the working in the
organization.
Pattanayak (1998) in his research on HRD climate stated that climate affects performance in
three ways:
* By defining the stimuli that confronts the individual
* placing constraints on the individual's freedom of choice
* providing sources of reward and punishment.
If there would be positive Climate then the performance of the employees would definitely
improve and this would be beneficial for the organization.
McCashland (1999) defined EE as „commitment or engagement - an emotional outcome to the
employee resulting from the critical components of the workplace. Miles 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)
Notably Goddard, (1999) describe engagement with the organization and engagement with the
task as associated with time use. Engagement is defined as „being physically and /or mentally
present, and supporting the goals of the organization. Disengagement from the organization
denotes not being present or not focused on the goals of the organization. Engagement with the
task means one is present and focused on the immediate task, issue, or problem relating to the
organization. Disengagement from task is defined as either not present or not focused on the
task, issue or problem relating to the organization. Goddard discusses the theoretical implications
of complex relationships between time and engagement as the locus of an individual‟s use of
time along the axes of engagement/disengagement from organization and task.
Alphonsa, (2000) surveyed HRD climate in private hospital of Hyderabad with sample of 50
supervisors from different departments participated in present study. The study highlighted that
the supervisors perception about the HRD climate is satisfactory and there exists reasonably,
good climate with respect to top management‟s belief in HRD climate.
Hatcher (2000) argued in his study that the purposes of HRD are centered on economic benefits,
social benefits and the ethics of HRD. These points indirectly suggest that a reconciliation of the
purposes of HRD centrally focus on training, development and learning within organizations for
individual development to achieve business strategies and for the development of organizational
competence.
Bhardwaj, and Mishra (2002), conducted a study with a sample of 107 senior, middle and lower
level managers of private sector organization. The study was conducted to understand the
existence of good HRD climate in the organization. The managers in general showed a favorable
attitude towards HRD policies and practices of the organization. They were satisfied with the
developmental policies of top management as well as happy with the prevailing HRD climate in
the organization and it was thus observed good HRD climate is essential for an organization.
Mufeed and Rao (2003), stated about the importance of HRD in developing strategies for both
managerial and non-managerial staff to combat with an ever increasing competitiveness besides
maintaining a high level of efficiency and productivity in their work force. A slight carelessness
in managing manpower makes them less productive first, then zero productive and then
counterproductive asset, by being capable of instigation others also not to work or produce.
Thus, a careless handling turns the performing human resource or asset into a non-performing
asset first and a “counter productive” liability latter.
Mufeed (2005) in his empirical study of the HRD climate in Hospitals found that the value of
authenticity had been well developed and signified Cohesion and trust in employees their
personal relationship.
Mufeed (2006) has conducted a study in major hospitals of the Jammu and Kashmir namely
Shri-Kashmir Institute of Medical Sciences (SKIMS) about perception of medical staff towards
HRD climate in the said hospital. The result of the study showed that the existing HRD climate
in the hospitals to a large extent is significantly poor. The study also showed that HRD in
organization uses various instruments like performance appraisal system, training, promotion,
rewards, organizational development and counseling etc., to create a climate conducive to
achieve organizational efficiency and effectiveness.
Rex D Foster (2006), in his research has stated about the importance of HRD climate in
innovation. In his study he stated that creativity plays an important role in innovation and
enabling motivation could be there through good climate in the oraganisation.HRD include
building human capacity, and developing organizational environments that are conducive to
innovation.
Koyuncu, M., Burke, R.J. & Fiksenbaum, L. (2006), this research examined potential
antecedents and consequences of work engagement in a sample of women managers and
professionals employed by a large Turkish bank. .Data was collected from 286 women, a
seventy-two percent response rate, using anonymously completed questionnaires. Engagement
was assessed by three scales developed by Schaufeli, Salanova, Gonzalez-Roma, and Bakker
(2002); Vigor, Dedication and Absorption. Antecedents included personal demographic and
work situation characteristics as well as work life experiences; consequences included measures
of work satisfaction and psychological well-being. The following results were observed. First,
worklife experiences, particularly, Control, Rewards and Recognition and Value fit, were found
to predict all three engagement measures. Second, engagement, particularly Dedication,
predicted various work outcomes (e.g., job satisfaction, intent to quit). Third, Engagement,
particularly vigor, predicted various psychological well-being outcomes. Questions of causality
cannot be addressed since data were collected at only one point in time. Longitudinal studies are
needed to determine the effects of work life experiences on engagement. Implications –
Organizations can increase levels of work engagement by creating work experiences (e.g.,
control, rewards and recognition) consistent with effective human resource management
practices.
Melissa Peters (2007) stated that employee engagement is an emotional connection that
employee has for his work, his peers and his organization. How this relation affects his work.
Employee (public sector) who is positively engaged with their work can be easily translated into
increased citizen trust. It is focusing on good employees and understanding what and how
employee wants to do. Employees should be motivated by using strategies as motivation leads to
higher job satisfaction and less turnover intentions.
Pooja Purang (2007) in a Comparative Analysis of HRD Climate in Public Private and
Multinational Organizations concluded that the Employee perceptions regarding the HRD
Climate are significantly better in the private sector and MNC in comparison to the Public Sector
Organization.
P.B.S. kumar (2007) described in his study about the differences between HRD & personnel
management. In this he has explained that there is a significant difference between the both &
had given around 27points that differentiates both. Also, he has given some models related to
HRD and personnel management so as to help managers clearly understand the difference
between the both.
Andreassen,C. S, Ursin, H. & Eriksen,H.R. (2007) ,examined following things in their study (1)
psychometric properties of Spence and Robbins' measures of the components of workaholism
and (2) relations between workaholism and health-related outcomes [job stress, burnout, work
engagement, and subjective health complaints (SHC)]. Two hundred and thirty-five bank
employees completed questionnaires measuring workaholism, job stress, burnout, work
engagement, and SHC. Factor analyses suggested a two-factor model of workaholism, "Drive"
and "Enjoyment of Work". There were significant relations between workaholism subscales and
SHC, job stress, burnout, and work engagement. The "Drive" subscale correlated positively with
job stress and SHC, and marginally with burnout and work engagement. The "Enjoyment of
Work" subscale correlated negatively with job stress, burnout, and SHC. The results showed that
a two-factor model of workaholism provided the best fit for Norwegian data, supported a
differentiation of enthusiastic and no enthusiastic workaholic features, and were related in
predictable ways to SHC, burnout, and work engagement, as predicted from contemporary
cognitive stress theory.
Nit in Varian (2007) described employee engagement as an attitude that employee carries within
himself for the organization. Employee management is categorized in following terms: engaged
employees, actively disengaged employees and not engaged employees. Research also includes
factors affecting employee engagement which is comprising of effective talent management,
opportunities for personal development, clarity of company goals, respectful treatment of
employees, fair treatment and many others. Apart from this it is stated employee engagement is
also affected effective communication in the organization. An employee should be given most
importance in the organization as they act as competitive edge of the company.
Cross (2008) explained employee engagement has become an important aspect of conducting
business for corporations, and many corporations are now restructuring their motivation and
engagement strategies in order to remain viable and competitive in response to social,
demographical, generational, and environmental changes and demands.
Kular, et al. (2008) stated that there are more employees who are disengaged or not engaged than
there are engaged employees. During this research they examined that there may be a clear link
between engagement, employee performance and business outcomes. The research depicted
three major areas including conceptualization of employee engagement; individual differences
(on the basis of gender, groups and region) affect employee engagement and employee
involvement related to employee engagement. This research is summarizing that there is no
agreed single definition for employee engagement, different people are being affected by
different factors around them in engagement of their work and last, personal relationships affect
the working behavior and engagement of employees in their work.
Alarcon, G.M. (2009), in his research stated about the recent developments in organizational
attitude and has focused on the concept of engagement. Despite the growing literature on
engagement there is little agreement on the conceptualization of engagement. The current study
sought to conceptualize and measure work engagement using Item Response Theory. The Wright
Work Engagement Scale was created using two samples, a student sample for exploratory
analyses and a working sample for item analyses. Results indicate engagement is a one-
dimensional construct. The 12 item Work Engagement Scale was created and demonstrated
sufficient convergent and discriminate validity.
Kühnel, J., Sonnentag, S., & Westman, M. (2009), the study extended their research on work
engagement by examining how a short respite and general job involvement contribute to work
engagement. We gathered questionnaire data from 156 nurses before and after a short respite.
Results indicated an increase of work engagement after the respite. Structural equation modelling
showed that nurses who experienced psychological detachment from work during the respite
showed a higher increase of work engagement. Moreover, nurses who indicated higher job
involvement also showed a higher increase of work engagement. Contradictory to this direct
positive effect job involvement had on change in work engagement; job involvement exerted a
negative indirect effect on change in work engagement by impaired psychological detachment
during the respite. Hence, job involvement acted as a double-edged sword for the increase of
work engagement. Practical implications for the organization of short respites and suggestions
for future research on recovery processes are discussed.
Zigarmi et al. (2009) explained engagement should and does stand alone as an independent
variable from organizational commitment or job commitment. Work engagement contributes to
the field of positive work psychology beyond the already existing constructs of organizational
commitment or job commitment. HRD practitioners must recognize that an employee passion
initiative is systemic and therefore requires a long-term investment to gain a well-earned
outcome.
Attridge, M. (2009). Reviewed that high levels of work engagement are when employees are
involved with, committed to, enthusiastic, and passionate about their work. This article provides
a review of the literature on employee engagement, based on studies from academic and business
sources. Areas of focus include defining the concept of employee work engagement, how it is
measured, how often it occurs, the costs of disengagement, the business benefits linked to
positive engagement, and how workplaces can be changed to encourage engagement. The
findings indicate that work engagement can be improved through adopting certain workplace
behavioural health practices that address supervisory communication, job design, resource
support, working conditions, corporate culture, and leadership style. Also featured are several
case studies from employers who measure and use employee engagement data to improve their
work culture, retain employees, and increase business financial success. Implications for
improving the service of employee assistance and behavioural health providers are discussed.
Febriansyah (2010) explained how giving a special treatment for employees in order to develop
competences and engagement are still significant problem in human resources management in
the developing countries. To counter those problems, researchers and practices have been
implementing human capital and employee engagement approach. This paper elaborated the
employee engagement factors. He shared 1274 questionnaires as primary data in which
respondents are management and operational staffs. Moreover, he used quantitative method in
factor analysis, to analyze all the information. The findings are employee engagement can be
endorsed by current career intention, equal opportunity and fair treatment, and communication.
Further from this research, he offered a platform to develop strategies in employee engagement.
Saraswathi (2010) stated an organization that has better HRD climate and processes is likely to
be more effective than an organization that does not have them. The present study is an attempt
to contribute to a better understanding of the HRD climate prevailing in software and
manufacturing organizations and to make a comparative analysis to understand whether they
have same degree of HRD climate or not. For organizational and employees performance it is
important to focus on various aspects of the HRD climate prevalent in the organization.
Solkhe and Choudhary (2011) proposed human resource being the most vital factor of
production and labor productivity, a positive, forward looking, HRD policy is a sine-qua-non for
the efficiency and effectiveness of public sector employees. The success of HRD in any
organization depends, to a large extent, on the existence of a favorable HRD Climate.HRD is
more personnel-oriented than technology-oriented and believes that participation and
communication would bring about greater commitment, efficiency, and growth of individuals.
Harris et al. (2011) focused on innovative workplace initiatives by different organizations
identifying strategies which can boost the morale of the employees. This project analyzed HRD
climate, organization culture and leadership/motivation styles help in development of employee
engagement in any organization. This project enhanced the communication skills of
participating. This research depicted that after the project employees had an increment in their
productivity and their involvement in work. Moreover, they added that the project actually
helped the manager, it was easy to delegate the authority and also there were less of industrial
disputes.
CHAPTER 3: RESEARCH METHODOLOGY
To fulfill the research objective, following research methodology will be used:
3.1 Objective of the study:
The study fulfilled the following objective;
To study the relationship between HRD climate and employee engagement among the service
sector employees.
3.2 Hypotheses:
On the basis of above objective following hypotheses were framed:
H1: There exists significant relationship between HRD climate and employee engagement
among service sector employees.
H2: There exists significant relationship between HRD mechanism and employee engagement
among service sector employees.
H3: There exists significant relationship between General Climate and employee engagement
among service sector employees.
H4: There exists significant relationship between OCTAPAC culture and employee engagement
among service sector employees.
3.3 Data collection
The aim of the present investigation was to study the relationship between HRD climate and
employee engagement among service sector organization. The data collection was done through
administration of questionnaires among the employees of service sector in the region of
Jalandhar.
Details of questionnaire:
We have considered two questionnaires that are UWES by Scheffauli and Bakker and HRD
climate by T.V Rao.
UWES is Utrecht Work Engagement Scale which is used to study the level of employee
engagement. The UWES operationalizes this new concept of work engagement by using three
scales: vigor, dedication, and absorption. Dedication, absorption and vigorous. Employee
engagement means that how much an employee is involved in his/her work and how effectively
the work is performed by him/her.
Another questionnaire that is HRD climate by T.V Rao is segregated into General climate,
OCTAPAC culture and HRD mechanism. HRD climate means providing the employees with the
climate of openness, confrontation, values, believes and authenticity. A good HRD climate helps
in motivating the employees and engaging them in their work.
3.4 Sample size:
For data collection a sample of 125 employees has been taken by targeting the above mentioned
organizations of service sector employees.
3.5 Sampling Technique:
Due to lack of time availability in order to collect data for the completion of the project, the
researcher opted for convenience sampling wherein the respondents were chosen as per the
convenience. Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.
3.6 Data analysis:
After the data was collected through questionnaires analysis was done by using SPSS version 16
& Pearson correlations analysis was utilized as statistical tool for determining the relationship
between HRD climate and employee engagement among the employees of service sector.
CHAPTER 4: ANALYSIS AND INTERPRETATION
We have collected the data from service sector employees of 3-4 organizations within Jalandhar
region. The total data obtained is from 125employees on the whole from all of the above
mentioned organizations. After, obtaining the data we have used SPSS (version16) as statistical
software for analyzing the relationship between HRD climate and employee engagement of
service sector employee and the tool used is Pearson correlation. Correlations are designated by
the lower case letter r, and range in value from -1 to +1. A correlation is often called bivariate
correlation to designate a simple correlation between two variables.
Various types of correlation are as follows:
a. Perfect Positive (r=1) : A correlation is said to be perfect positive when value of r is equal
to1 that means there exist a direct and equal relation between the variables.
b. Positive Correlation(0<r<1): A correlation is said to be positive when value of r is greater
than 0 but less than 1 that means the variables will have direct relationship but the changes
will not vary in equal proportion.
c. Perfect Negative(r= -1): A correlation is said to be perfect negative when value of r is equal
to -1 that means there exist inverse relation between the variables but they will vary equal
proportion in opposite direction i.e. one increases other will decrease equally.
d. Negative Correlation(-1<r<0): A correlation is said to be negative when value of r is
greater than -1 but less than 0 that means the variables will have inverse relationship and the
changes will not vary in equal proportion.
In this we have calculated correlation between:
a. Employee Engagement (ee) and HRD mechanism.
b. Employee Engagement (ee) and General Climate.
c. Employee Enagagement (ee) and OCTAPAC Climate.
d. Employee Engagement (ee) and HRD Climate.
4.1 Evaluation of Hypotheses:
H1: Evaluation of correlation between Employee Engagement and HRD Climate
The hypothesis (H1) is being accepted i.e relationship between employee engagement and HRD
climate.
Descriptive Statistics
Mean Std. Deviation N
Ee 3.7736 1.08797 125
HRDclimate 5.1874 1.19808 125
Correlations
ee HRDclimate
Ee Pearson Correlation 1 .732**
Sig. (2-tailed) .000
N 125 125
HRDclimate Pearson Correlation .732** 1
Sig. (2-tailed) .000
N 125 125
**. Correlation is significant at the 0.01 level (2-tailed).
TABLE 1
Interpretation: The relationship between Employee Engagement (as measured by the ee scale)
and HRD climate (as measured by the HRD climate score) was investigated using Pearson
product-moment correlation coefficient. Preliminary analyses were performed to ensure no
violation of the assumptions of normality and linearity. There was a strong, positive correlation
between the two variables [r=.732, n=125, p>.05], with high levels of HRD climate associated
with high level of Employee Engagement. Since, the significant value is less than 0.01 i.e. .000,
this depicts impact of HRD culture affects the overall engagement of employees towards their
work and organization in a highly significant way.
H2: Evaluation of Correlation between Employee Engagement and HRD mechanism.
The hypothesis (H2) is being accepted i.e relationship between employee engagement and HRD
mechanism
Descriptive Statistics
Mean Std. Deviation N
Ee 3.7736 1.08797 125
HRDmechanism 5.2560 1.22048 125
TABLE 2
Interpretation:
The relationship between Employee Engagement (as measured by the ee scale) and Human
Resource Development mechanism (as measured by the HRD mechanism scale) was
investigated using by Pearson product-moment correlation coefficient. After analyzing the data
using SPSS we observed that there exist a strong, positive correlation between the two variables
[r=.705, n=125, p>.01], with high levels of HRD associated with high level of Employee
Engagement. Since, the significant value is less than 0.01 i.e. .000, this depicts impact of HRD
mechanism affects the overall engagement of employees towards their work and organization in
a highly significant way.
Correlations
Ee HRDmechanism
Ee Pearson Correlation 1 .705**
Sig. (2-tailed) .000
N 125 125
HRD mechanism Pearson Correlation .705** 1
Sig. (2-tailed) .000
N 125 125
**. Correlation is significant at the 0.01 level (2-tailed).
H3: Evaluation of correlation between Employee Engagement and General Climate
The hypothesis (H3) is being accepted i.e relationship between employee engagement and
General climate.
Correlations
Ee GeneralClimate
Ee Pearson Correlation 1 .745**
Sig. (2-tailed) .000
N 125 125
GeneralClimate Pearson Correlation .745** 1
Sig. (2-tailed) .000
N 125 125
**. Correlation is significant at the 0.01 level (2-tailed).
TABLE 3
Interpretation: The relationship between Employee Engagement (as measured by the ee scale)
and General climate (as measured by the general climate scale) was investigated using Pearson
product-moment correlation coefficient. Preliminary analyses were performed to ensure no
violation of the assumptions of normality and linearity. There was a strong, positive correlation
between the two variables [r=.745, n=125, p>.01], with high levels of general climate associated
with high level of Employee Engagement. Since, the significant value is less than 0.01 i.e. .000,
this depicts impact of general climate affects the overall engagement of employees towards their
work and organization in a highly significant way.
Descriptive Statistics
Mean Std. Deviation N
Ee 3.7736 1.08797 125
GeneralClimate 5.1274 1.18460 125
H4: Evaluation of Employee Engagement and OCTAPAC Culture
The hypothesis (H4) is being accepted i.e relationship between employee engagement and
OCTAPAC culture.
TABLE 4
Interpretation: The relationship between Employee Engagement (as measured by the ee scale)
and Octapac climate (as measured by the OCTAPAC climate scale) was investigated using
Pearson product-moment correlation coefficient. Preliminary analyses were performed to ensure
no violation of the assumptions of normality and linearity. There was a strong, positive
correlation between the two variables [r=.711, n=125, p>.05], with high levels of OCATAPAC
climate associated with high level of Employee Engagement. Since, the significant value is less
than 0.01 i.e. .000, this depicts impact of OCTAPAC culture affects the overall engagement of
employees towards their work and organization in a highly significant way.
Descriptive Statistics
Mean Std. Deviation N
Ee 3.7736 1.08797 125
Octapacculture 5.1787 1.24617 125
Correlations
Ee Octapacculture
Ee Pearson Correlation 1 .711**
Sig. (2-tailed) .000
N 125 125
Octapacculture Pearson Correlation .711** 1
Sig. (2-tailed) .000
N 125 125
**. Correlation is significant at the 0.01 level (2-tailed).
CHAPTER 5: FINDINGS
Employee Engagement:
The employee engagement mean scores of the total sample of 125 are 3.7736 as presented in the
table above. Since the questionnaire used 7 point scale, average mean score of 3 around indicate
a moderate tendency on that dimension, which indicate the existence of a just above average
degree of Employee Engagement.
HRD Climate:
The HRD Climate mean scores of the total sample of 125 is 5.1874 as presented in the table
above. Since the questionnaire used 7 point scale, average mean score of 5 around indicate a
moderate tendency on that dimension, which indicate the existence of a just above average
degree of HRD Climate.
Examining the three major components of HRD Climate i.e. General Climate, HRD Mechanisms
and OCTAPAC Culture the results indicates:
General climate: The general climate mean scores of the total sample of 125 are 5.1274 as
presented in the table above. Since the questionnaire used 7 point scale, average mean score of 5
around indicate a moderate tendency on that dimension, which indicate the existence of a just
above average degree of HRD Climate.
HRD mechanism: The HRD mechanism mean scores of the total sample of 125 are 5.1274 as
presented in the table above. Since the questionnaire used 7 point scale, average mean score of 5
around indicate a moderate tendency on that dimension, which indicate the existence of a just
above average degree of HRD Climate.
OCTAPAC climate: The OCTAPAC climate mean scores of the total sample of 125 are 5.1787
as presented in the table above. Since the questionnaire used 7 point scale, average mean score of
5 around indicate a moderate tendency on that dimension, which indicate the existence of a just
above average degree of HRD Climate.
Relationship between HRD climate and Employee Engagement
Mean score analysis of HRD climate and Employee Engagement of the organization reveal that a
relationship exists between them. Correlation analysis was carried out to statistically test their
relationship. The result shows that a significant positive correlation of 0.732 exists between
them. Therefore, it supports the hypothesis and makes clear that an improvement in HRD
Climate is essential for improving the level of Employee Engagement of the Employees, which
in turn will bring positive changes in Organizational Performance of the company. Having
observed that a positive correlation exists between the HRD Climate and Employee engagement,
further analysis was conducted to find the relationship between the sub factors or dimensions of
HRD Climate with Employee Engagement. The correlation analysis performed to analyze the
relationship between HRD Climate Dimensions i.e. General Climate, HRD Mechanisms and
OCTAPAC Culture and Employee Engagement. The analysis showed that there exists a positive
relationship between different components of HRD Climate and Employee Engagement. The
correlation coefficient was .745 (EE*General Climate), .705 (EE*HRD Mechanisms) and .711
(EE*OCTAPAC Culture) respectively. This proves that HRD Climate is a
contributing/influencing factor to increase the level of Employee Engagement of the employees.
After the analysis following other findings were also observed:
Most of respondents said that they feel very enthusiastic while working and this is due to the
environment and Climate being provide to them. Respondents always are very energetic
towards their work.
The respondents for the statement “When I get up in the morning, I feel like going to office”
replied yes which shows that they are interested in their work and also they are very much
vigorous for their work. Thus it could be observed that they are highly engaged in their
work.
For the HRD Climate the respondents replied agree to almost too every statement, thus it
could be observed that the climate provided to them is very much open, supportive and
developmental. Because of this type of climate they are highly and positively engaged in
their work.
For few statements like I can continue working for longer periods, I get carried away when I
am working and the top management is willing to invest their considerable time for
employee‟s development, they were neutral to them and thus this depicts that they are
neither satisfied nor dissatisfied with the climate. So, in order to make the employees
satisfied the organization should try to improve these things.
CHAPTER 6: CONCLUSION
HRD climate in any organization has become an indispensible part. As per the previous
researches there exists a relationship between HRD climate and job satisfaction, organization
commitment, employee empowerment which is further resulting that employees are somewhere
engaged in their work. But there was no clear indication towards the confirmation of relationship
between HRD climate and employee engagement. Also one cannot be sure that if all the above
mentioned factors are conducive in relation to the employee‟s expectation, this will turn him to
an engaged employee.
As per our study, we observed that service sector organizations are trying their best to engage
their employees in their work. As a part of policies and procedures there exist an environment of
openness, authenticity, confrontation, trust and many more which are motivating the employees
in their job. Organizations today are taking regular feedback from their employees so as to
improve their system, culture and environment. Employees are being considered as the most
important asset of the organization and without their full engagement there could not be any
positive outcome or result.
Early identification of human resource potential and development of their skill represent two
major tasks of human resource development. This can only be achieved when conducive HRD
Climate prevails. Thus on the whole, we found the existence of good HRD Climate in the
organization according to the perceptions of employees sought through the scale constructed for
measuring the same among service sector employees. The employees in general showed a
favorable attitude towards HRD Policies and practices of the organization. They were satisfied
with the policies of the top management as well as contented with their work and the
organization as a whole i.e. level of Employee Engagement was also good. Most importantly our
findings support the existing literature and add to the deficit literature existing which have
attempted to explore the relationship of HRD Climate and Employee Engagement on a standard
context. It was concluded that there is a significant relationship between Employee Engagement
and HRD Climate and a positive change in HRD Climate and its components will bring about
positive changes in Employee engagement and in turn impact the Organizational Performance in
positive manner. However the findings of the present study indicate that there is a still substantial
scope for improvement in various aspects of HRD in the organization as well as factors
influencing Employee Engagement.
In the end it must be emphasized here that since this study was carried out in a service sector
organization, the findings of the study are not applicable to other types of organizations. Further,
since the sample consisted only of employees of 3-4 organizations of service sector, the findings
may be generalized for the employees of other organization in the same sector. Although this
study made an attempt in examining the potential impact of HRD Climate on Organizational
performance by concentrating on single variable i.e. just employee engagement, but there are
many other indicators of OP such as Financial Performance, Employee Turnover, Job
satisfaction and Productivity which remains unconsidered. Thus, there is a scope for further
research in this area. In general, this study contributes to the literature on HRD Climate and
provides an additional insight to the individuals associated with the HR field.
CHAPTER 7: LIMITATIONS OF THE STUDY
Several limitations has impacted the results and generalizability of the findings during the
research design phase due to the differentiated response rates, they are as follows:
Less time availability.
Biased answers by the respondents.
Research was limited to Jalandhar region only.
CHAPTER 8: SUGGESTIONS
The finding of the present study indicates that there is a still substantial scope for improvement
in various aspects of HRD in the organization as well as factors influencing employee
engagement.
Some of these aspects along with suggestions are:-
The overall relation between the two variables depicts that there is good relationship between
both of them but when asked from the respondents that is it difficult for them to detach
themselves from work then the respondents did not accepted it. The mean score of this factor
was very low as compared to other factors (2.88),thus this shows that employee are engaged
in their work but they are not highly committee or absorbed in their work so, the organization
should try to improve the climate and should implement some activities which could help in
increasing the commitment level of employees.
The top management‟s commitment should be increased towards learning & potential
development of its human resources as this would engage them in their work. The mean
score of the items dealing with these aspects were 4.736, 4.856 which are below average
this means that presently they are giving less importance to these things.
Management should focus their attention on building culture of trust and team work as the
mean score (4.872) is below average which is showing that there does not exist a relationship
of trust.
The top management of the organization should try to implement some various welfare
activities as according to the analysis it is being observed that the mean score for this
statement is very much low as compared to other factors of HRD mechanism.
Organization should try to emphasize on the activities such as career opportunities, should try
improving the rewarding system and also the compensation structure so, that employees get
more involved or engaged in their work.
In the end it must be emphasized that since the research was limited to Jalandhar region and the
data was collected from 3-4 organization, the findings and suggestions are not applicable to
entire Service industry.
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