Impact of Employee Engagement on Work Performance; Mediating Role of Core Self-Evaluation in Health Sector of Lahore, Pakistan
RizwanQaiser Danish*,AtqaAbdurRazzaq, Farid Ahmad
Hailey College of Commerce, University of the Punjab, Lahore, Pakistan
*Corresponding Author:
Abstract
This study will be a contribution to previous studies related to this concept. This study will have great implications for managers and employers who want to increase the individual-level and organizational-level performance of employees. An addition to previous studies related to this concept, this study also tries to assist those mangers and employers who practically want to implement this concept in their organizations. This study was intended to analyze the mediation impact of core self-evaluation on the relationship of employee engagement and employee performance. For this study questionnaires were distributed among the different private and public hospitals of Lahore.Total of 251 questionnaires were properly filled by the employees. The Pearson’s product moment co-efficient of correlation between variables was found. To examine the relationship between independent and dependent variablesanalysis of linear regression wasperformed.SEM (Structural Equation Modeling) was applied to test all the hypothesis and resultant model fit.Sobel test of mediation was used to analyze the mediation effect of core self-evaluation on the relationship of employee engagement and performance variables.
Keywords: Employee engagement, core self evaluation, work performance
1.Introduction
Employee engagement has a significant impact on the performance of employees. Companies that follow such type of practices that increase the level of employee engagement will help those companies in gaining competitive advantage over other firms in the long-run. Subsequently, engagedemployees play an important role in successfully fulfilling the strategic goals and objectives of the organization. Being physically as well as psychologically present at the time of performing organizational roles referred to as employee engagement (Kahn, 1990). Engaged employees are active, have the ability to accomplish the demands of the job and have positive association with their roles of the job (Maslach, Schaufeli et al. 2001). The engagement of the managers is necessity in order to increase the level of employee engagement.To observe the impact of employee engagement on employee performance, by considering the mediating role of core self-evaluationsome of the objectives of this study are:
- To examine the relationship between employee engagement and task performance in the presence of mediating variable core self-evaluation
- To examine the relationship between employee engagement and organizational citizenship behavior (individual) in the presence of mediating variable core self-evaluation
- To examine the relationship between employee engagement and organizational citizenship behavior (organization) in the presence of mediating variable core self-evaluation
2.Literature Review
Foundation of employee engagement theoretical development was provided by the conceptual work of(Kahn, 1990). Employee engagement is “ the attaching of the members of organization to their duties; engaged employees express their physical, cognitive, and emotional presence during performance of their roles”(Kahn, 1990). The researchers and practitioners both are agreed that the employee engagement has positive significances (Saks, 2006). When employees voluntarily put extra time, efforts and energy into their roles without any pressure from the organization is called engagement (Richman, 2006). When employees feel obliged and put additional efforts into their jobs comparatively to the payments they receive from their organization is called engagement (Kahn, 1990). A number of evidences support the association between the work engagement of employees and performance at the organizational level (Simpson, 2009). Engaged employees increase customer loyalty to the organization which results in increased organizational profitability (Andrewa & Sofian 2012).
Employee engagement has a positive relationship with increased job satisfaction, low absenteeism, low turnover, high organizational commitment and performance (B.Schaufeli, M.Martinez et al. 2002; Schaufeli, Salanova et al. 2002; Salanova, Llorens et al. 2003; Schaufeli & Bakker 2004). In comparison to the other predictors of organizational performance, employee engagement is the strong predictor of all (Markos & Sridevi 2010). If the employees have the opportunity to convey their views to the upper level of management then the engagement level of employees increases (Truss et al 2006).
As compare to other job attitudes, employee engagement strongly predicts the performance of employees(S.Christian, S.Garza et al. 2011 ). Employees which have decision-making power related to their jobs have higher engagement levels(Purcell, Kinnie et al. 2003). Engaged employees’performance is higher and they obtain higher ratings on In-role and Extra-role Performance from their co-workers and they also eager to accomplish additional work as well (Bakker, Demerouti et al. 2004). Employee engagement positively support In-role performance of employees (Schaufeli, Bakker et al. 2006). The proper and timely feedback by the employer to the employees for their contributions keeps employees happy and engaged for a longer period of time (Pfau & Kay 2002).
Figure 1: Proposed Model for Mediation
H 1: Core self-evaluation will mediate the relationship between employee engagement and task performance.
H 2: Core self-evaluation will mediate the relationship between employee engagement and organizational-citizenship behavior (individual).
H 3: Core self-evaluation will mediate the relationship between employee engagement and organizational-citizenship behavior (organization).
3.Methodology
Self-administered structured questionnaires were used to collect the data from the health sector lower-level, middle-level and upper-level employees.Questionnaire includes the information given below:
Demographics section consist the name of the organization, gender, job nature, designation, marital status, education and total job experience. Subjective section containsmeasures of variables employee engagement, task performance, organizational citizenship behavior (individual) and organizational citizenship behavior (organization).
5-point Likert scale ranging from Strongly Disagree (1) to strongly Agree (2) was usedto get the respondents’ responses. For this study the 400 questions were distributed among the different private and public hospitals of Lahore.Total of 251 questionnaires were properly filled by the employees and the rate of response was 63%.We choose 8 public and private hospitals of the Lahore District of Punjab, Pakistan to collect the datafrom the respondents.
Proportionate sampling technique is used in order to distribute the questionnaires among hospitals.
3.1. Variables and Measures
3.1.1. Employee Engagement
Employee engagement is “ the harnessing of organization members’ selves to their roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performance” (Kahn, 1990).For measuring employee engagement a scale consisting of seven items is used that was developed by (Schaufeli, Salanova et al. 2002) to measure the employee engagement and burnout.
3.1.2. In-Role Performance
Task performance is defined as how effectively the employees perform the activities of the job by contributing in the technical core of the organization either directly by the implementation of the technological process, or indirectly by making it available the required services or materials (Borman & Motowidlo 1993). 5-item measure of in-role performance was used in this study that was established by (Williams & Anderson 1991).
3.1.3. Extra-Role performance
Behaviors that are far-away from the formal organizational-roles are extra-role behaviors(Bateman & Organ 1983). The measure used in this study for the measurement of extra-role performance was also established by (Williams & Anderson 1991).
3.1.4. Core Self-Evaluation
Core self-evaluation is defined as “fundamental premises that individuals hold about themselves and their functioning in the world” (Judge, Locke et al. 1998).Core Self-Evaluation is measured using 12-item scale established by (Judge, Erez et al. 2002).
4.Findings
Out of 251 Questionnaires, 61% of the respondents are male and 39% are female. Respondents’ majority job nature is on contract bases with 55.8% while 44.2% belongs to the permanent nature of job. 72.5% of the respondents belong to the middle level designation, 23.5% belongs to upper level, and only 4% of the respondents belong to the lower level of designation. Highest percentage of the respondents with 51% have an educational level of graduation, 40.6% have masters or above degrees, whereas only 8.4% respondents are intermediate. Majority of the respondents with 39.8% have job experience with their organizations of 2-4 years, 35.1% have 10 or more years of experience, while 25.1 of the respondents have 5-10 years of job experience. 55.4% respondents were married while 44.6 % were single.
The values of the mean of all the respective variables are given in the table 4.1. The values of the mean and standard deviation of employee engagement are (M = 4, SD = .714), OCB (Individual) (M = 3.73, SD = .685), OCB (Organization) (M = 3.90, SD = 720), Task Performance (M = 4.23, SD = .607), and Core Self-Evaluation (M = 4.01, SD = .548). The mean value of task performance is highest with 4.23, demonstrating that employees are very intense toward boosting up their task performance, working with very efficiently and high motivation level, playing a vital role in the achievement of the organizational desired goals and objectives.The Pearson’s product moment co-efficient of correlationbetween variables are also given in the table. The highest correlation is found between core self-evaluation and OCB (Organization) i-e r= 0.794, P < 0.01. This shows that employees who regularly evaluate their self-performance are greatly and positively involved in the behavior of organizational-citizenship (organization). The reliability values of the individual measure are also given in the table 4.1. The variable employee engagement has the highest reliability with r = 0.832.
Table 4.1: Pearson’s moment co-efficient of correlation
Variables / Mean / SD / Reliability / EE / OCB (I) / OCB (O) / TP / CSEEmployee Engagement (EE) / 4 / .714 / 0.832 / 1
OCB Individual / 3.73 / .685 / 0.774 / .326 ** / 1
OCB Organization / 3.90 / .720 / 0.792 / .509 ** / .389 ** / 1
Task Performance (TP) / 4.23 / .607 / 0.724 / .437 ** / .394 ** / .727 ** / 1
Core Self-Evaluation (CSE) / 4.01 / .548 / 0.824 / .455** / .504** / .794** / .681** / 1
**. Correlation is significant at the 0.01 level (2-tailed).
Mediation Tests
SEM (Structural Equation Modeling) was applied to test all the hypothesis and resultant model fit.The ratio of CMIN/DF (minimum discrepancy divided by degrees of freedom) is 2.87. The GFI (goodness of fit index) is 0.87 and AGFI(adjusted goodness of fit index) is 0.82. The RMSEA (The root mean square error of approximation) is 0.086. The TLI (Tucker-Lewis Index) is 0.84 and The CFI (Comparative Fit index) is 0.87. The values for fit indices are presented in the following table 4.2 showing that the model is a good fit.
Table 4.2:Model fit indices of the Structural Equation measurement model
Index of Fit / Chi-Square /(df) / CMIN/DF / GFI / AGFI / NFI / IFI / TLI / CFI / RMSEAValue / 392.654/ 137 / 2.87 / 0.87 / 0.82 / 0.82 / 0.87 / 0.84 / 0.87 / 0.086
Proposed Mediation Model 1
Results of table 4.3 show the regression analysis of independent variable (employee engagement), mediating variable (core self-evaluation) and dependent variable (task performance). Results show the coefficient of regression, standard error of association and significance level (P value) between the relationships of variables.
Table 4.3 depicts that there is a significant relationship between Employee Engagement and Task Performance. Table also represents that independent variable (Employee Engagement) and Mediating Variable (Core Self-Evaluation) too have significant relationship between them (p = .000 < .01). The relationship between dependent variable (Task Performance) and mediating variable (Core Self-Evaluation) is also highly significant with P value < .01.
Table 4.3: Results of Regression Analysis of all Model 1 Relationships
Regression Coefficients for the association between the Employee Engagement and Task Performance / .332Std.Error of c / .050
P value of c / .000
Regression Coefficients for the association between the Employee Engagement and Core Self-evaluation / .240
Std.Error of a / .046
P value of a / .000
Regression Coefficients for the association between the Core Self-evaluation and Task Performance / .501
Std.Error of b / .063
P value of b / .000
Proposed Mediation Model 2
Results of table 4.4 show the regression analysis of independent variable (employee engagement), mediating variable (core self-evaluation) and dependent variable (OCB (individual)).Results show the coefficient of regression, standard error of association and significance level (P value) between the relationships of variables.
Table 4.4 depicts that there is a significant relationship with (p = .000 < .01) between Employee Engagement and (OCB (Individual)). Table also represents that independent variable (Employee Engagement) and Mediating Variable (Core Self-Evaluation) too have significant relationship between them (p = .000 < .01). The relationship between dependent variable (OCB (Individual)) and mediating variable (Core Self-Evaluation) is also highly significant with (P value < .01).
Table 4.4: Results of Regression Analysis of all Model 2 Relationships
Regression Coefficients for the association between the Employee Engagement and OCB(Individual) / .306Std.Error of c / .058
P value of c / .000
Regression Coefficients for the association between the Employee Engagement and Core Self-evaluation / .240
Std.Error of a / .046
P value of a / .000
Regression Coefficients for the association between the Core Self-evaluation and
OCB (Individual) / .435
Std.Error of b / .074
P value of b / .000
Proposed Mediation Model 3
Results of table 4.5 show the regression analysis of independent variable (employee engagement), mediating variable (core self-evaluation) and dependent variable (OCB (organization)).Results show the coefficient of regression, standard error of association and significance level (P value) between the relationships of variables.
Table 4.5 shows that there is a significant relationship with (p = .000 < .01) between Employee Engagement and (Organizational Citizenship Behavior (Organization). The relationship between dependent variable (Organizational Citizenship Behavior (Organization)) and mediating variable (Core Self-Evaluation) is also highly significant with (P value < .01).
Table 4.5: Results of Regression Analysis of all Model 3 Relationships
Regression Coefficients for the association between the Employee Engagement and OCB(Organization) / .430Std.Error c / .058
P value of c / .000
Regression Coefficients for the association between the Employee Engagement and Core Self-evaluation / .240
Std.Error a / .046
P value of a / .000
Regression Coefficients for the association between the Core Self-evaluation and OCB(Organization) / .724
Std.Error b / .069
P value of b / .000
Sobel test of mediation was used to analyze the mediation effect of core self-evaluation on the relationship of employee engagement and performance variables.
Table 4.6: Results of Mediation Analysis of All 3 Model Relationships
Results of Model 1 / Results of Model 2 / Results of Model 3Sobel test / P Value / Sobel test / P Value / Sobel test / P Value
4.362 / .000 / 3.902 / .000 / 4.672 / .000
Results show that the variable core self-evaluation fully mediates the relationship between employee engagement and task performance with significant p value = .000. The relationship between employee engagement and OCB (individual) is also fully mediated by the variable core self-evaluation having significant mediation value (p = .000<.01),while Core self-evaluation partially mediates the relationship between employee engagement and OCB (organization) showing significant mediation relationship value (p = .000<.01).
5.Conclusion
This study was intended to analyze the mediation impact of core self-evaluation on the relationship of employee engagement and employee performance. Results indicated that the mediation model of the variables employee engagement, task performance, organizational-citizenship behavior (individual), organizational-citizenship behavior (organization)and core self-evaluation fit the data well.We established the three hypotheses showing the mediation relationships between independent variable (employee engagement) and dependent variables. All the variables have significant and positive correlation between them. The findings of regression analysis and mediation tests show that all mediation hypotheses are accepted.The variable core self-evaluation fully mediates the relationship between employee engagement and task performance. The relationship between employee engagement and OCB (individual) is also fully mediated by the variable core self-evaluation. Core self-evaluation partially mediates the relationship between employee engagement and OCB (organization).
5.1. Practical Implications
This study will be a contribution to previous studies related to this concept. This study will have great implications for managers and employers who want to increase the individual-level and organizational-level performance of employees. Managers must take all the measures that will contribute in increasing the engagement level of employees. As if the employees are engaged, they will evaluate their work performance for the time being and work more motivationally and effectively. Consequently, their performance will be positively affected and they perform their job roles more efficiently, leading to successfully achieving organizational objectives. Those employees having high engagement level will be more involved in extra-role behaviors apart from their In-role performance.
5.2. Limitations and Suggestions
This study is conducted only on the employees of health sector; this type of research could be conducted on the other sectors as well. This study analyzes the mediating impact of core self-evaluation, it could be carried out to check the mediating impact of other personality traits on the relationship of employee engagement and employee performance. This study captures only the Lahore City of Punjab, Pakistan; it could be conducted on the complete health sector of Pakistan so that the results could be more generalizable.
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