Study of the relationship between employee engagement and organisational effectiveness

Abstract

The aim this study is to investigate the relationship between employee engagement and organisational effectiveness. Two questionnaires in relation to employee engagement and organisational effectiveness using Parsons model were designed and distributed among 184 experts and managers of Damavand Power Generation Management located in Damavand, Iran. The participants were selected using a stratified sampling method. The finding proves that there is a meaningful relationship between each of the six dimensions of internal marketing, including organisational justice, rewarding, training, employee participation, information sharing, job security and organisational effectiveness. The data analysis shows that performance of employee engagement programs in organisational justice, offering rewards, training, employee involvement, job security, and information sharing affect absorption and retention of employees and increases of their job satisfaction. Employee engagement influences organisational effectiveness, if the employee is viewed as a key stakeholder and internal customer of the organisation. Knowledge of the methods of achieving organisational effectiveness through employee engagement results in increased productivity and organisational performance. Also, management is confident about the organisation's situation. In addition, managers will reach a state of awareness in the field and be able to apply the principles of the internal marketing in employee engagement, which allows corporate planners to be able to design effective strategies.