Tuesday, November 23, 2021

Impact of Leadership on Employee Engagement

Human resources remain the most valuable asset for the success of an organization even though the business models are changing fast with the introduction of new automated functions, machines and robots (Boudreau 1996). The employees face many challenges to be engaged in their workplace as several intrinsic and extrinsic factors influence employee engagement (Singh 2016; Ram et al. 2011). The key influencing factors are; leadership, carrier development, respectful treatment of employees, communication, talent recognition and health and safety (Chandani et al. 2016). The employee’s positive attitude towards the workplace always builds a positive motivational connection with the workplace and the leaders.

Of these factors, leadership significantly influences employee engagement and success in any organization in the modern world (Chaudhary et al. 2021). Good leadership has a positive relationship with employee engagement (Ariani 2014; Avey et al. (2008)). For instance, employees show enthusiastic engagement towards the organization when they feel that the leaders care about their safety and well-being, are willing to listen to employees and follow up with the right actions by their immediate managers (Macey et al. 2011).

With the increased technology and globalization, the type of ethical and authentic leadership that is genuine, self-aware, and transparent has a profound impact on engagement (Penger & Cerne 2014); Alam et al. (2021). Further, leaders who encourage employees' identification with the organization can promote their engagement (Hansen et al. 2014). Moreover, leadership competencies on understanding and providing employee needs, using emotional intelligence, and consistency between words and actions helps keep employees engaged (Wang & Hsieh 2013; Shuck & Reio 2014). On the contrary, positive effects are suppressed by Machiavellian characteristics of cunning and manipulative leadership associated with intimidation and avoiding others (Den Hartog & Belschak 2012; Leary et al. 2013). Therefore, organizations` strategic leadership should be developed to demonstrate empowerment behaviour, because it affects the intrinsic motivation of employee engagement (Van Schalkwyk et al. 2010; Zhang & Bartol 2010).

Leadership styles vary due to many factors, including traits and organizational culture.  Burns (1996) describe transforming leadership as a “relationship of mutual stimulation and elevation that converts followers into leaders and may convert leaders into moral agents”, and transactional leadership as a “responsive, employees achieve objectives through rewards and punishments set by the leader and motivates followers by appealing to their own self-interest”.

Moreover, engagement is positively influenced by transformational leadership rather than transactional and Lasseiz faire leadership (Ghafoor et al. 2011; Song et al. 2012; Adeniji et al. 2020) because transformational leaders foster work engagement by enabling access to information, opportunities, support and adequate resources(Amor et al. 2020).  Further, research has shown that enhanced work engagement among employees experiencing low transactional leadership than among employees experiencing high transactional leadership (Strom et al. 2014) suggest. Promote empowering leadership to increase engagement; leader characteristics are essential along with empowering leadership to inculcate positive behaviour among employees (Arshad et al. 2021). CSR positively affects engagement (Bouichou et al. 2021). However, some scholars argue that one style does not fit all situations in enhancing engagement and influential leaders are both transactional and transformational in their leadership styles (Bass et al. 2003).

The literature suggests that servant leadership leads to increased self-efficiency, enhancing employee engagement (Zeeshan et al. 2021). In addition, servant leadership style positively influences employee engagement and contributes to employee loyalty to the workplace (Carter & Baghurst 2014), especially at higher goal congruence and social interaction (De Clercq et al. 2014). This type of leadership improves engagement through fulfilling psychological contact as servant leadership promotes followers' work engagement mostly through the social exchange mechanism (Bao et al. 2018).

The proper leadership develops safe psychological feelings of employees’ minds. It will enhance the organisation's employee engagement, and the outcome will be more than the company's expected profit. Moreover, servant leadership practices may foster employees' task and adaptive performance, especially through promoting work engagement (Kaltiainen & Hakanen 2020). The research has proven that participative leadership behaviours of leaders nurture employees’ psychological safety to take risk and promotes employee engagement (Chen et al. 2020). 

In my experience, the engagement of public service employees is very low due to employee factors and leader-centred factors. Therefore, an energetic and talented workforce should be recruited by selecting brilliant candidates or improving the existing workforce through long-term training and development. In addition, public service executives should also be trained in the value of employee engagement and related concepts, as all managers and administrators perform leading roles at sub-national, district, provincial and national levels.

In summary, employee engagement is influenced by various factors and complex, and leaders have a crucial role to play in ensuring motivation and providing a conducive environment to work. Given the deviations in work styles owing to the COVID pandemic and the home office model for some categories of employees, strategic and innovative strategies by leadership are essential to enhance employee engagement and retention.

References

Adeniji, A, Osibanjo, A, Salau, O, Atolagbe, T, Ojebola, O, Osoko, A, Akindele, R & Edewor, O 2020, 'Leadership dimensions, employee engagement and job performance of selected consumer-packaged goods firms', Cogent Arts & Humanities, vol. 7, no. 1.

Alam, I, Singh, JSK & Islam, MU 2021, 'Does supportive supervisor complements the effect of ethical leadership on employee engagement?', Cogent Business & Management, vol. 8, no. 1.

Amor, AM, Vazquez, JPA & Faina, JA 2020, 'Transformational leadership and work engagement: Exploring the mediating role of structural empowerment', European Management Journal, vol. 38, no. 1, pp. 169-78.

Ariani, DW 2014, 'Relationship leadership, employee engagement, and organizational citizenship behavior', International Journal of business and social research, vol. 4, no. 8, pp. 74-90.

Arshad, M, Qasim, N, Farooq, O & Rice, J 2021, 'Empowering leadership and employees' work engagement: a social identity theory perspective', Management Decision.

Avey, JB, Hughes, LW, Norman, SM & Luthans, KW 2008, 'Using positivity, transformational leadership and empowerment to combat employee negativity', Leadership & Organization Development Journal.

Bao, YJ, Li, CP & Zhao, H 2018, 'Servant leadership and engagement: a dual mediation model', Journal of Managerial Psychology, vol. 33, no. 6, pp. 406-17.

Bass, BM, Avolio, BJ, Jung, DI & Berson, Y 2003, 'Predicting unit performance by assessing transformational and transactional leadership', Journal of Applied Psychology, vol. 88, no. 2, p. 207.

Boudreau, J.W., 1996. Human resources and organization success.

Bouichou, SI, Wang, L & Feroz, HMB 2021, 'How corporate social responsibility perceptions affect employees' positive behavior in the hospitality industry: moderating role of responsible leadership', International Review on Public and Nonprofit Marketing.

Burns, JS 1996, 'Defining leadership: can we see the forest for the trees?', Journal of leadership studies, vol. 3, no. 2, pp. 148-57.

Carter, D & Baghurst, T 2014, 'The Influence of Servant Leadership on Restaurant Employee Engagement', Journal of Business Ethics, vol. 124, no. 3, pp. 453-64.

Chandani, A, Mehta, M, Mall, A & Khokhar, V 2016, 'Employee Engagement: A Review Paper on Factors Affecting Employee Engagement', Indian Journal of Science and Technology, vol. 9, no. 15.

Chaudhary, V, Mohanty, S, Malik, P, Mary, AAS, Maroor, JP & Nomani, M 2021, 'Factors affecting virtual employee engagement in India during Covid-19', Materials Today: Proceedings.

Chen, L, Wadei, KA, Bai, SJ & Liu, J 2020, 'Participative leadership and employee creativity: a sequential mediation model of psychological safety and creative process engagement', Leadership & Organization Development Journal, vol. 41, no. 6, pp. 741-59.

De Clercq, D, Bouckenooghe, D, Raja, U & Matsyborska, G 2014, 'Servant Leadership and Work Engagement: The Contingency Effects of Leader-Follower Social Capital', Human Resource Development Quarterly, vol. 25, no. 2, pp. 183-212.

Den Hartog, DN & Belschak, FD 2012, 'Work Engagement and Machiavellianism in the Ethical Leadership Process', Journal of Business Ethics, vol. 107, no. 1, pp. 35-47.

Ghafoor, A, Qureshi, TM, Khan, MA & Hijazi, ST 2011, 'Transformational leadership, employee engagement and performance: Mediating effect of psychological ownership', African Journal of Business Management, vol. 5, no. 17, pp. 7391-403.

Hansen, A, Byrne, Z & Kiersch, C 2014, 'How interpersonal leadership relates to employee engagement', Journal of Managerial Psychology, vol. 29, no. 8, pp. 953-72.

Kaltiainen, J & Hakanen, J 2020, 'Fostering task and adaptive performance through employee well-being: The role of servant leadership', BRQ-Business Research Quarterly.

Leary, TG, Green, R, Denson, K, Schoenfeld, G, Henley, T & Langford, H 2013, 'The Relationship Among Dysfunctional Leadership Dispositions, Employee Engagement, Job Satisfaction, and Burnout', Psychologist-Manager Journal, vol. 16, no. 2, pp. 112-30.

Macey, W.H., Schneider, B., Barbera, K.M. and Young, S.A., 2011. Employee engagement: Tools for analysis, practice, and competitive advantage (Vol. 31). John Wiley & Sons.

Penger, S & Cerne, M 2014, 'Authentic leadership, employees' job satisfaction, and work engagement: a hierarchical linear modelling approach', Economic Research-Ekonomska Istrazivanja, vol. 27, no. 1, pp. 508-26.

Ram, P. and Prabhakar, G.V., 2011. The role of employee engagement in work-related outcomes. Interdisciplinary Journal of Research in Business, 1(3), pp.47-61.

Shuck, B & Reio, TG 2014, 'Employee Engagement and Well-Being: A Moderation Model and Implications for Practice', Journal of Leadership & Organizational Studies, vol. 21, no. 1, pp. 43-58.

Singh, R., 2016. The impact of intrinsic and extrinsic motivators on employee engagement in information organizations. Journal of Education for Library and Information Science, 57(2), pp.197-206.

Song, JH, Kolb, JA, Lee, UH & Kim, HK 2012, 'Role of transformational leadership in effective organizational knowledge creation practices: Mediating effects of employees' work engagement', Human Resource Development Quarterly, vol. 23, no. 1, pp. 65-101.

Strom, DL, Sears, KL & Kelly, KM 2014, 'Work Engagement: The Roles of Organizational Justice and Leadership Style in Predicting Engagement Among Employees', Journal of Leadership & Organizational Studies, vol. 21, no. 1, pp. 71-82.

Van Schalkwyk, S, du Toit, DH, Bothma, AS & Rothmann, S 2010, 'Job Insecurity, Leadership Empowerment Behaviour, Employee Engagement and Intention to Leave in a Petrochemical Laboratory', SA Journal of Human Resource Management, vol. 8, no. 1.

Wang, DS & Hsieh, CC 2013, 'The Effect of Authentic Leadership on Employee Trust and Employee Engagement', Social Behavior and Personality, vol. 41, no. 4, pp. 613-24.

Zeeshan, S, Ng, SI, Ho, JA & Jantan, AH 2021, 'Assessing the impact of servant leadership on employee engagement through the mediating role of self-efficacy in the Pakistani banking sector', Cogent Business & Management, vol. 8, no. 1.

Zhang, XM & Bartol, KM 2010, 'Linking Empowering Leadership and Employee Creativity: The Influence of Psychological Empowerment, Intrinsic Motivation, and Creative Process Engagement', Academy of Management Journal, vol. 53, no. 1, pp. 107-28.

 

13 comments:

  1. Hi Ravi, You have well identified the subject matter. Osborne and Hammoud (2017) ’s research findings refer to B4:F34 traits such as empathy, good two-way communication, respect and objectivity, which should be adopted by leaders enabling good employee engagement strategies. As Levine (2018) Describe different perspectives as some employee-focused companies view culture as a cause, not an impact, and leaders are responsible for creating a culture that makes it easier for employees to participate.

    ReplyDelete
    Replies
    1. Positive leadership styles with team-oriented behaviours that interact with employees are the most important for leaders in achieving high employee engagement (Xu & Thomas 2011).

      Delete
  2. Hi ravi, agree with your points, The employee engagement is crucial target to achieved organizational success. The engaged employees are emotionally attached to their organization and highly involved in their job with a great enthusiasm for the success of their employer, going extra mile beyond the employment contractual agreement. then special attention should be provided in encouraging employee engagement within organizations (Markos & Sridevi 2010).

    ReplyDelete
    Replies
    1. Agree. However, this commnet is not relevant to this leadership blog post.

      Delete
  3. Well written, Ravi. When the leaders are inspirational, engagement happens naturally. Leaders are accountable for communicating to employees that their efforts are critical to the company's success. When an employee's work is considered significant, their interest and engagement levels increase (Mughal, 2020).

    ReplyDelete
    Replies
    1. Leadership isn't the only factor influencing engagement. It's true that positive and inspirational leadership is a key factor, but companies need to develop their own strategies for employee engagement.

      Delete
  4. Hi Ravi. Well explained points. Nasomboon (2014) mentions that effective leaders motivate the employees and improves employee performance and growth in the firms. As well as, an employee is an engaged employee if his/her emotional well-being allows him/her to feel committed and dedicated to the workplace.

    ReplyDelete
  5. Very detailed Ravi, Agreed with your points , I'm working for one of the leading apparel manufacturing organization in Sri Lanka , its leaders influences are directly effect to the employee engagement. Further standing with Janakan's comment as well,'When the leaders are inspirational , engagement happens naturally'. Engaged employees feel positive their role and perform well to achieve organizational goals and improve the organization to met set goals (Emmott,2006 ).

    ReplyDelete
  6. Hi Ravi, Agree with you, As identify the fact of leadership is also plays a major role in employee engagement, where as an employer has to maintain a good relationship with the employees and help them to achieve the personal goal and building the trust with the employee, open forums will also help to improve the interrelationship with the employer and employee of the organization. Hence leaders has to be visionary to tactically handle the context (Zhang, Avery, Bergsteiner and More, 2014).

    ReplyDelete
  7. Hi Ravi, agreed, most representative core dimension of the paternalistic leadership ternary model, authoritarian leadership can be studied as an independent leadership style [4] . Since Farh and Cheng established the paternalistic leadership ternary model [5] , scholars have carried out a lot of empirical research, but the relevant research findings are different: between the authoritarian leadership and the subordinates’ attitudes, behaviors and other outcome variables. (UH & Kim, HK 2012,)

    ReplyDelete
    Replies
    1. How does authoritarian leadership affect employee engagement? Sim et al. 2021, suggests that authoritarian leadership may “make it difficult for employees to psychologically detach themselves from thinking about the problems at work, which may lead to rumination”.

      Delete
  8. Hi Ravi, agreed, leadership factors, leaders score best on treating employees fairly and equitably. Which isn’t saying a whole lot since this factor fails to make the top 10 for fully engaged employees who rated it 19 points behind their leading factor—belief in the organization’s mission and goals. Leaders score worst on openness and transparency. (Penger, S & Cerne, M 2014)

    ReplyDelete
    Replies
    1. Leadership is not the only factor influencing engagement. What is essential is to have a strategic plan for employee engagement, including defining job roles. Research has shown that the work engagement of public-sector workers can be improved by just redesigning their jobs (Hernaus et al., 2017).

      Delete

Employee Engagement and Talent Management

The human capital the knowledge and skills of an organization's employees are important factors that determine the competitive advanta...