Impact of Employee Engagement on Organizational Effectiveness

Impact of Employee Engagement on Organizational Effectiveness

Muhammad Hamid, Tayyaba Javed, Fatima Sarfraz, Muqadsa Iltaf

Department of Business Administration, University Of Sargodha


Purpose: Every organization has the aim of improving their effectiveness. Financial markets are also using different management practices to enhance the competitive level. Purpose of this study is to improve the organization effectiveness by interconnection among all the variables and to check the moderator effect on all these variables. Design/methodology/approach: Convenience sampling technique is used to obtain the data for analysis. A structured questionnaire is made to obtain the data and the sample is 250 employees of all Islamic bank. SEM approach is used to testing the hypothesis for the analysis of moderator. Findings: The results of this study describe that if the training & development, compensation & benefits, leadership and organizational justice are at higher level then it will lead to the higher level of employee engagement. And role of organizational justice also shows the positive relationship on all the variables. Limitations/implications of research: The limitation of this study is that the information is collected only from two cities and the results of this study are not truly defined. Information can be collected from different areas so the better results can be collected. Practical implications: It is difficult to engage the employees especially in the high competitive environment so the results of this research suggest that how an organization can increase the level of engagement among the employees to increase the effectiveness of organization. Originality: Firstly the gap which is covered in literature review is that employee engagement builds team work, training, job security, effective communication and work schedule through leadership, training and development, compensation and benefit and organizational justice, second it tests the positive effect of organizational justice that how a relationship can be more strong and that provides the more data explanations than previous.

Keywords: Employee Engagement, Training and Development, Compensation and Benefit, Leadership and Organizational Justice, organizational effectiveness, banking sector

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How to cite this article:
Muhammad Hamid, Tayyaba Javed, Fatima Sarfraz, Muqadsa Iltaf. Impact of Employee Engagement on Organizational Effectiveness. Global journal of Economics and Business Administration, 2018, 3: 4.


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