Dynamics of Employee Engagement: A Case Study on JK Tyre & Industries Ltd.

1. Overview of JK Tyre & Industries J.K. Organization, founded over 100 years ago, is an eminent industrial group in India. The Group has multi-business, multi-product and multi-location operations. The group manufactures and sells a large range of products with leadership position in several areas including Automotive tyres and tubes, Paper & Pulp, Cement, V-Belts, Oil Seals, Power Transmission Systems, Hybrid Seeds, Woollen Textiles, Readymade Apparels, Sugar, Food & Dairy Products, and Cosmetics etc. Clinical Research and Software Development are other activities. The Organization is recognized as a dynamic force playing a key role in the resurgence of India. J.K. Organization has different companies for different businesses. Most of these are public limited companies and are quoted on the stock exchange with a large number of public shareholders. All products of the Group are not only strong brand names, but also reputed market leaders, in their respective segments. The success of the Group is based on the use of latest technology, continuous research & development and innovation. The Organization has set up highly reputed Research and Development Institutes in India. With its operation spread in almost every state of India, the Group employs a large number of people and has nationwide sales and service network of over 10,000 distributors and a large number of retailers and service centres. J.K. Organization has a global presence with manufacturing activities and outsourcing arrangements in different parts of the world. Its exports span over 80 countries across 6 continents. The Groups manufacturing facilities are ISO 9001 certified. Many have earned QS 9000 and ISO 14001 certifications, validating its concern for the environment. Its units have

been conferred with various awards for exemplary export efforts and for the betterment of ecology like, the Annual Greentech Environment Excellence Award, the India Manufacturing Excellence Gold Award and numerous other awards. It has set-up and promoted a number of Educational, Medical and Social Institutions and actively supports such causes. The Group employs over 1,000 Managers, 2,000 Engineers, Chemists and Chemical Engineers etc. besides a large contingent of workmen with various skills. All plants work at high efficiency and productivity levels using latest state-of-the-art technologies and equipment procured from India and abroad. The success of the companies is based on innovative ideas and techniques, continuous research & development, as also on its wide and effective marketing network of over 10,000 distributors and retailers and over 200 stocking and service centres, operating pan India. JK tyre is the manufacturer of truck and bus tyres and the second largest manufacturers of 4- wheelers. JK Tyre and Industries is counted among the renowned corporate entities which is the symbol of excellence, diversification and pioneering new technologies.

The company is the undisputed market leader in Truck/Bus radials in India, with 138 selling locations, 4,000 strong dealer network served by six plants in India and three plants in JK Tornel, Mexico. With state-of-the-art modern production facilities in all 9 plants, total production capacity is almost 20 million tyres per annum.

2. Employee Engagement Defined Most often employee engagement has been defined as emotional and intellectual commitment to the organization (Baumruk, Richman and Shaw;, 2004,2006,2005) or the amount of discretionary effort exhibited by employees in their job (Frank et al, 2004). Although it is acknowledged and accepted that employee engagement is a multi-faceted construct, as previously suggested by (Kahn, 1990), (Truss et al, 2006) define employee engagement simply as passion for work, a psychological state which is seen to encompass the three dimensions of engagement discussed by (Kahn, 1990), and captures the common theme running through all these definitions.

The existence of different definitions makes the state of knowledge of employee engagement difficult to determine as each study examines employee engagement under a different protocol. In addition, unless employee engagement can be universally defined and measured, it cannot be managed, nor can it be known if efforts to improve it are working (Ferguson, 2007). This highlights the problems of comparability caused by differences in definition. Furthermore, whilst it is acknowledged that employee engagement has been defined in many different ways, it is also argued the definitions often sound similar to other better known and established constructs such as organizational commitment and organizational citizenship behavior (OCB) (Robinson et al, 2004). Thus (Robinson et al, 2004) defined engagement as one step up from commitment. As a result, employee engagement has the appearance of being yet another trend, or what some might call old wine in a new bottle. Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, works with colleagues to improve performance within the job for the benefit of the organization and has a positive attitude held by towards the organization and its values (Robinson et al, 2004).

2.1. Categories of Employee Engagement

According to the Gallup Consulting organization (The Gallup Organization, 2004, Cufade, cited in Lamphear, 2004, p.2), there are different types of people.

Engaged: "Engaged" employees are builders. They are more committed to the organization. They are naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward. They are less likely to leave the organization. Not Engaged: Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not engaged tend to feel their contributions are being overlooked, and

their potential is not being tapped. They often feel this way because they don't have productive relationships with their managers or with their co-workers. Actively Disengaged: The "actively disengaged" employees are the "cave-dwellers." They are "consistently against virtually everything." They are not just unhappy at work; they are busy acting out their unhappiness. They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged co-workers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning. They increase the cost of the organization by low quality, customer satisfaction, and missed opportunity.

HR practitioners believe that the engagement challenge has a lot to do with how employee feels about the about work experience and how he or she is treated in the organization. It has a lot to do with emotions which are fundamentally related to drive bottom line success in a company. There will always be people who never give their best efforts no matter how hard HR and line managers try to engage them. But for the most part employees want to commit to companies because doing so satisfies a powerful and a basic need in connect with and contribute to something significant.

2.2. Key Ingredients of employee engagement A major challenge for HR today is how to engage and ultimately retain employees particularly amid an economic downturn. 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 behavioural components. Sl. No. 1 Nature of work Is the nature of the work, mentally stimulating day-to-day? PARAMETERS NARRATION

Support

Does the employee feel supported by his line manager and colleagues?

Recognition

Does the employee feel that his efforts are recognized and valued

Advocacy

Is the employee willing to recommend their company to family and friends?

Loyalty

Does the employee want to stay with the company and develop their career?

Values

Does the employee feel that managers and colleagues walk the talk in terms of the companys values?

Table 1: Key ingredients of employee engagement.

2.3. Aspects of Employee Engagement

Three basic aspects of employee engagement according to the global studies are:-

The employees and their own unique psychological make-up and experience The employers and their ability to create the conditions that promote employee engagement Interaction between employees at all levels. Thus it is largely the organizations responsibility to create an environment and culture conducive to this partnership, and a win-win equation.

2.4. Importance of Employee Engagement An organizations capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results. Some of the advantages of engaged employees are;

a. Engaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success.

b. They will normally perform better and are more motivated. c. There is a significant link between employee engagement and profitability. d. They form an emotional connection with the company. This impacts their attitude towards the companys clients, and thereby improves customer satisfaction and service levels. e. It builds passion, commitment and alignment with the organizations strategies and goals. f. Increases employees trust in the organization. g. Creates a sense of loyalty in a competitive environment. h. Provides a high-energy working environment. i. Boosts business growth. j. Makes the employees effective brand ambassadors for the company.

A highly engaged employee will consistently deliver beyond expectations.

2.5. Factors Leading to Employee Engagement

Studies have shown that there are some critical factors which lead to employee engagement. Some of them identified are;

2.5.1. Career Development- Opportunities for Personal Development Organizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them.

2.5.2. Career Development Effective Management of Talent Career development influences engagement for employees and retaining the most talented employees and providing opportunities for personal development. The employees should be provided with an efficient and ongoing training for the work that they perform in the organization. They should also be rewarded and recognized for their good work.

2.5.3. Leadership- Clarity of Company Values Employees need to feel that the core values for which their companies stand are unambiguous and clear. 2.5.4. Leadership Respectful Treatment of Employees Successful organizations show respect for each employees qualities and contribution regardless of their job level. 2.5.5. Leadership Company Standards of Ethical Behaviour A companys ethical standards also lead to engagement of an individual.

2.5.6. Empowerment Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward.

2.5.7. Other factors

A. Equal Opportunities and Fair Treatment The employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and advancement to all the employees.

B. Performance appraisal Fair evaluation of an employees performance is an important criterion for determining the level of employee engagement. The company which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of employee engagement.

C. Pay and Benefits The company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations.

D. Health and Safety Research indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate methods and systems for the health and safety of their employees.

E. Job Satisfaction Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job.

F. Communication The company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organization. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high.

G. Family Friendliness A persons family life influences his wok life. When an employee realizes that the organization is considering his familys benefits also, he will have an emotional attachment with the organization which leads to engagement.

H. Co-operation If the entire organization works together by helping each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged.

According to the Institute of Employment Studies (IES), the key driver of engagement for an employee is giving him a sense of feeling involved and valued.

3. Employee Engagement Survey Employee engagement surveys are good tools for finding about the employee involvement and satisfaction. Properly constructed employee satisfaction surveys provide the insights that are foundational to create and reinforce pleasurable work environments. Employee attitudes, burnout tendencies, passion factors, loyalty, workplace climate and competitive intelligence are key indicators for employee retention, satisfaction, and productivity. Effective businesses focus on creating and reinforcing employee satisfaction to get the most out of their human capital. Employee engagement research is popularized by Gallup Organization (Organization, Gallup, 2004) and major employee research organizations and corporate are conducting this kind of survey now. According to the (Organization, Gallup, 2004) research, there is a significant relationship between employee engagement and customer loyalty, business growth and profitability of the company. HR practitioners believe that the engagement challenge has a lot to do with how employee feels about the work experience and how he or she is treated in the organization. The Gallup research in employee engagement studies since 1985 has thus made a contribution in adding an additional P' to the 4 P's of marketing i.e. product, price, promotion, place and now people to the marketing mix.

Employee Satisfaction Surveys are conducted with the help of HR Department by JK Tyre & Industries Ltd. every alternate year. The Employee Satisfaction Survey conducted in 2013 aimed at measuring satisfaction of employees on all key aspects, viz. Overall satisfaction with working climate and conditions, both physical and emotional. Loyalty to the company. Motivation levels for self and colleagues- extent of engagement and involvement with the company. Perceived market strength of the company- confidence/trust in the company. Overall achievement.

The main objective of the survey was to look at various dimensions of employee satisfaction and to suggest ways and means for employee retention and improvements in HR processes. JK Tyre & Industries, in order to conduct the Employee Satisfaction Survey, with the help of its Human Resource Development team prepared a structured questionnaire where

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attributes were randomized across respondents to address any order bias and to ensure personalized unique questionnaires. The Survey was administered through web-based questionnaires. Each employee was sent the link to the questionnaire, a unique login code and password through his e-mail. The employees then accessed and responded to the questionnaire online. The TRI*M Model proposed by TNS was used to measure the Employee Satisfaction Survey. The TRI*M Model include three aspects of Employee Satisfaction; Measuring Monitoring and Managing

The TRI*M Model measured employee engagement based on the following dimensions: Overall satisfaction Recommendation Re-joining Motivation of colleagues Performance/Competitiveness Market strength. Market strength.

The TRI*M analysis takes place at 3 levels; TRI*M Index analysis TRI*M Typology analysis TRI*M Grid analysis.

3.1. TRI*M Index analysis The TRI*M Index is a weighted calculation based on responses to the following five questions: How satisfied are you with your employment at [Company] in general? Would you apply for a job at [Company] again? Would you recommend [Company] as an employer to your friends and acquaintances?

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How would you rate the motivation of your close colleagues within your department? How would you rate [Company]s overall competitiveness in the market?

TRI*M Index indicates the level of commitment towards organization. The range is as follows: TRI*M Index level of commitment

85+ 61-84 45-60 10-44 <10

Highly committed Committed Low commitment Disillusioned Detached

Table 2: Range for measuring TRI*M Index

3.2. TRI*M Typology analysis TRI*M Typology explains the employees situation within their working environment. This explanation is based on the two major dimensions, i.e., importance and satisfaction, driving the employees commitment.The next stage of the TRI*M analysis involved the categorization of all respondents into four different groups. The four groups are as follows: RESIDENTS- Employees whose situation makes them satisfied, however they do not feel the working environment is motivating. Such employees have a stabilizing effect on the company. They are high on satisfaction and low on importance. DRIVERS- Employees who find themselves in this situation often tend to strongly identify with corporate objectives and have a high level of loyalty towards the company. They are high on satisfaction and importance. DETACHED- Employees who are in a situation whereby they are discouraged by the working environment and therefore are likely to feel disconnected from the company. Such employees breed a negative climate within the organization and are an underutilized resource.

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CRITICS- Employees whose situation means they tend to strongly believe in the competitive ability of the company, however they can also be unhappy with it on a personal level and therefore rather critical. They are thus left caught up more in the pursuit of self-advancement and are open to changing jobs if opportunities show up.

3.3. TRI*M Grid analysis TRI*M Grid is a four quadrant graph, used for determining employee requirements. The four quadrants-motivators, hygienic, potential savers and hidden opportunities are used for assessing the following quality dimensions and elements: Interpersonal relationships. Work climate/Organizational culture. Facilities/support/tools etc. Compensation/Benefits. Target and Appraisal process. Training and Development. Policies, rules and regulations. Job content/career development. Communication. Company image Safety, health, Environment & Society.

The range and symbols used for indicating the level of performance are as follows: RANGE >85 84-70 69-55 54-40 <40 SYMBOL LABEL Far above average Above average Average Below average Far below average

Table 3: Range and symbols used for indicating the level of performance

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The results related to intensity of employee motivation were obtained and areas for HR initiative were identified, so that specific actions can be taken to improve the overall perspective of the employees.

4. Engagement Woes at JK Tyre & Industries According to (Kahn, 1990), employee engagement is influenced by three conditions: meaningfulness, safety and availability. The factors with which employees are unsatisfied at JK Tyre & Industries include job rotation for career growth, training relevant to the job, timeliness of increments and rewards, clear feedback on opportunities and

rewards/recognition for good work. This means that managers need to change the frequency and the manner in which they deliver feedback, and to make it part of their daily managerial tasks. Supervisors should also be more accurate and transparent in the decision making regarding employees and provide employees with the necessary work related information. Therefore, they need to create and support a relaxed atmosphere at work, where positive social and work related interaction between employees could take place.

5. Hitches related to Employee Engagement at JK Tyre & Industries

Problems with direct supervisors (poor employee-manager relationships) account for 49% of disengaged employees. This finding is specific to disengaged employees. Good employee-manager relationships are usually a prerequisite for engagement but not something that leads to higher levels of engagement.

Lack of respect for or confidence in senior leadership, lack of organization direction (strategic alignment), poor performance and quality standards, and related topics account for 33% of disengaged employees. These areas are drivers of engagement as well - things that drive engagement as well as disengagement. Basic Needs compensation, workplace conditions, and related topics account for the remaining 18% of disengaged employees. If basic needs are not being met, employees are disengaged, but once those needs are met, these things do not drive higher levels of employee engagement.

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6. Explications for the Hitches at JK Tyre & Industries The management in order to overcome the problems related to employee engagement focussed its efforts on the following areas:

I.

The management developed clear compensation and promotion policies for its employees. The employees should be, if its not against the organization way of operations, enlightened with the knowledge of how their salaries are determined. The benefits given to employees should commensurate their dedication to their respective work.

II.

The management ensured a smooth flow of both up-down and down- up flow of information.

III.

The organization developed clear guidelines on determining/ selecting prospective employees for various training and development opportunities.

IV.

The supervisor/manager should give regular feedback on performance by holding informal meetings with each individual. Supervisor/manager should appreciate and encourage employees to work hard.

V.

If the top management is not able to keep any promises it should give the reason why it has not been able to keep promises .This information should be communicated to all employees.

VI.

All the employees should be treated equally and there should not be any bias treatment.

VII.

Management revised the salary administration system to satisfy the employees who are not satisfied with the salary paid. Management followed a system which measures the employees performance at regular intervals and thereby, designed salary slabs for particular posts so as to distinguish the mechanics from the supervisors, thus, created a sense of respect towards the respective posts.

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VIII.

The administration policies should be updated so that all the employees are aware of the policies.

IX.

The training needs of the employees were reviewed at least twice a year. Based on that, training programs were conducted for all the employees.

X.

Day to day work related training should be provided that is 80% job related and 20% on management skills.

XI.

The management conducted the workshop on team development, so, that all employees are aware of the benefits of teamwork.

XII.

The management provided all sorts of welfare facilities in order to develop a feeling of secureness among the employees which in turn will bind them with the organization.

XIII.

Facilities which were important and needed, such as computer systems in the service section which will help the employees to maintain certain records of the customers for the benefits of the customers, were provided.

XIV.

Cultural activities were conducted to further motivate the employees to attain the goals.

7. Implications of Employee Engagement programme

The engagement practices recommended above were initiatives that were found suitable at the current context and suited the budget and the employee time constraints. These initiatives were either in Green which was implemented immediately or in Yellow, which needed some more discussion with the leadership team for the action plan. The Yellow ones were found suitable but seemed a little difficult to implement at the current context because of budgetary constraints, time available or the issue of harmonization across all entities of the organization. Some of the initiatives that could be included in the organizations plan to be implemented at a later date are:

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Outbound Team activities Promote environment friendly practices Yearly Fitness/Education allowance Annual medical check-ups extended to family Hobby clubs Better Infrastructure facilities (recreation facility, ergonomics etc.) Inculcation of work Culture of allowed to make mistakes

Organizations have to give their employees the freedom to make their work exciting and an environment having an engaged work life .With increase in responsibilities at home and a desire to excel in their careers, employees often get distracted from their work which needs to be taken care of .Employees are the assets of the organization and if they are not given a space whereby they can make a perfect blend of both work, fun, optimum performance from them may be difficult. Employee engagement emphasise the importance of employee communication on the success of a business. An organization should realize the importance of employees, more than any other variable, as the most powerful contributor to an organizations competitive position. Organizations and employees share a symbiotic relation, where both are dependent on each other to satisfy their needs and goal. Therefore; employee engagement should not be a one-time exercise, but a continuous process of learning, improvement and action. Eventually, measuring employee engagement does not enhance engagement or customer response. It is an initiative coined to identify employee engagement with work and trust in the company leading to action plans for forming a truly engaged workforce that creates internal value, promises organizations of employment stability and in effect, positions organizations for nonstop development and success. Thus, organizations today are actively looking forward to intently with and proceed on behalf of their employees` expectations and performances.

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