CHAPTER 1 EXECUTIVE SUMMARY

Executive-Summary:
For several years now, 'employee engagement' has been a hot topic in corporate circles. It's a buzz phrase that has captured the attention of workplace observers and HR managers, as well as the executive suite. And it's a topic that employers and employees alike think they understand, yet can't articulate very easily. employee engagement as "a heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work".
There are certain potential drivers, which are best suited to define the status of employee engagement, have been taken out of a pool of drivers suggested by various authors:

1 | Belief in Co’s direction | 15 | Leadership | 2 | Benefits | 16 | Organization Development | 3 | Career opportunities | 17 | Pay | 4 | Chief Executive Officer | 18 | Performance Review | 5 | Communication | 19 | Personal Growth | 6 | Company’s Values | 20 | Purpose in Life | 7 | Decision Making | 21 | Recognition | 8 | Direct Supervisor | 22 | Social Contribution | 9 | Environmental Mastery | 23 | Social Integration | 10 | Focused Work | 24 | Senior Managers | 11 | Human Resource Mgt. | 25 | Training & Development | 12 | Individual’s Own Values | 26 | Trust | 13 | Interpersonal Support | 27 | Work Group | 14 | Job Content | 28 | Work-Life Balance |

Perrin‟s Global Workforce Study (2005) uses the definition “employees‟ willingness and ability to help their company succeed, largely by providing discretionary effort on a sustainable basis.” According to study, engagement is affected by many factors which involve both emotional and rational factors relating to work and the overall work experience.This verdict and definition forwarded by Institute of Employment Studies gives a clear insight that employee engagement is the result of two-way relationship between employer and employee pointing out that there are things to be done by both sides.

Conceptual framework has been represented related to employee engagement (in the public sector, interpretative models, power of employee engagement.
Review of literature considers “Merit board links employee engagement & productivity”, “Engagement equals productivity”, “Cambridgeshire county council” etc.
Research Design which consider definition, sample size, types & techniques, tools used & limitation of the study.
Data analysis & interpretation and recommendations related to employee engagement which consider the topic of “Employee engagement at IOCL.”
A bibliography in project report is provided at the end that should serve as good sources of reference material for learners & researchers in the area.
An annexure appears at the end of the report that provides some useful sources of information on the Internet regarding project report. This should prove to be a welcome features for those persons who would like to access the net for more information on issues covered in this project report.
This analysis recommends following findings: Recommendations: * Communication: Focus on the communication channels and improvement in their efficiency is highly recommended. Also change management is needed to be addressed. A survey purely based on the various factors related to the communication is also recommended which will point out the weaker links in this area and thus can be improved upon. * Job Rotation and Internal Transfers: It is recommended that there must be timely job rotation and internal transfers. Inadequacy in this area may lead to disengagement of the employees. Thus the focus is needed in this area too.

* Work –life Balance: It is recommended that there is need for more frequent social get-togethers of employees and their family to maintain adequate work life balance

CHAPTER 2

COMPANY PROFILE

INDIAN OIL CORPORATION LIMITED

2.1 OIL AND GAS SECTOR OVERVIEW

Institutional structure- Overview of the Institutional Structure and Leading Companies
The institutional structure of the oil and gas sector in India is given overleaf. The Ministry of Petroleum and Natural Gas, is the primary agency for regulating this sector in India. It is entrusted with the responsibility of handling legislation and issues related to E&P of oil and natural gas, such as, refining, distribution and marketing; and the import, export, and conservation of petroleum products and Liquefied Natural Gas (LNG). There are several leading Public Sector Undertakings (PSUs) and private players across the value chain.

2.2 INDIAN OIL CORPORATION LIMITED: INTRODUCTION

Background
Indian Oil Corporation Ltd (IOC), a Navratna company, was established in 1959 as the Indian Oil Company Ltd. It acquired the current name in 1964 after merging with Indian Refineries Ltd and forayed into petrochemicals and gas areas in 2004. The company’s core activity includes refining and marketing petroleum products.
Distinctions
India’s flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee during 30th June – 1st September 2009. It is India’s largest commercial enterprise, with a sales turnover of Rs. 2, 85,337 crore, the highest-ever for an Indian company, and a net profit of Rs. 2, 950 crore for the year 2008-09. Indian Oil is also the highest ranked Indian company in the prestigious Fortune ‘Global 500’ listing, having moved up 19 places to the 105th position in 2009. It is also the 18th largest petroleum company in the world. The Corporation has celebrated the year 2009 as its golden jubilee year.

2.3 Company Overview * India’s largest commercial enterprise with leading market shares in downstream segment of Oil business * Highest ranked Indian corporate in Fortune’s list of World’s 500 Largest Companies (#105) * 18th largest petroleum company in the world – Fortune Global 500 * Local Currency Rating of A1+ (short-term) & LAA+ (long-term) from ICRA * Foreign Currency Rating of Baa2 from Moody’s, BBB- from S&P and Fitch Ratings * India’s ‘No. 1 Corporate’ in annual listing of Business Standard (BS 1000), Business India (BI Super 100) and Economic Times (ET 500) * India’s Most Trusted Fuel Pump Brand (ET Brand Equity – AC Neilsen Survey 2007) * Winner of prestigious awards : * National Award for “Innovations in Implementing Business Continuity for SAP R/3 Environment” from Govt of India * SAP certification to IOC’s Customer Competence Center * Indian Oil Chairman chosen to receive “SCOPE Award for Excellence and Outstanding Contribution to Public Sector Management – Individual Category”.

2.4 VISION

MISSION * To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction. * To maximize creation of wealth, value and satisfaction for the stakeholders. * To attain leadership in developing, adopting and assimilating state-of-the-art technology for competitive advantage. * To provide technology and services through sustained Research and Development. * To foster a culture of participation and innovation for employee growth and contribution. * To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. * To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

2.5 ORGANISATIONAL SET UP
A company, Indian Refineries Ltd. Was setup in the year 1958 to refine crude oil. Another company, namely, Indian Oil Company Ltd. Was incorporated in the year 1959 to market the products. In 1964, the refining Company and the marketing company were merged and Indian Oil Company was born. In 1981 Assam Oil Company, a private sector oil company was nationalized and merged with Indian Oil Corporation Limited.
Indian Oil Corporation has five divisions, namely: * Refineries Division. * Pipeline Division. * Marketing Division. * Assam Oil Division. * Research and Development Center.
Indian Oil Blending Ltd. Is a wholly owned subsidiary of Indian Oil Corporation and is engaged in the manufacturing of lubricants and greases.
The Corporation is managed by a Board of Directors: CHAIRMAN

DIRECTOR HR
DIRECTOR
R&D
DIRECTOR
FINANCE

DIRECTOR
REFINERIES
DIRECTOR
PIPELINES
DIRECTOR
MARKETINGGG

2.6 IOC- BRANDS

2.7 Recent Human Resource developments in pipeline division:

* E-Samadhan, an initiative aimed towards employees’ queries, suggestions and grievances developed and implemented in Pipelines Division in February 2009. * Online Property Return developed and launched in Pipelines Division in February 2009. * SAPling, a SAP Leave Integrated Online System developed in Pipelines Division was launched on April 4, 2009. * Recognition & Reward Scheme for outstanding achievement and demonstration of core values of Care, Innovation, Passion and Trust formulated and approved for Pipelines Division. * A comprehensive manpower study conducted across Pipelines Division to assess the optimum manpower requirement in various Pipelines Stations to ensure effective manpower deployment across the Division. * Pipelines Division has bagged a contract for USD 737,960 for imparting training to new recruiters of GNPOC, Sudan in pipeline operations and maintenance at their installation in Sudan. * Launched MENTORING process “Diksha” in the entire Pipelines Division as a part of retention strategy. * Developed assessment tool based on 360 degree feedback to link it with appraisal of Potential, Values and Competencies for Senior executives * Developed for the first time in IOC, a succession planning scenario for the next ten years in 2003-04 along with recommendations to take care of anticipated HR issues

CHAPTER 3

REVIEW OF LITERATURE
Review of literature:-
3.1Merit board links employee engagement and productivity By Brittany R. Ballenstedt bballenstedt@govexec.com
Employees who are fully engaged tend to work in offices that achieve better program results, call in sick less often and stay with their agencies longer, according to a new report by the Merit Systems Protection Board. The report, which is based on results from a 2005 survey of nearly 37,000 employees at 24 federal agencies, found that despite dwindling resources and increased pressure to improve programs, agencies can thrive if managers connect with their employees. Higher levels of employee engagement correlated with higher scores on the results and accountability portion of the Office of Management and Budget's Program Assessment Rating Tool. There were differences in the level of employee job involvement among different groups of federal employees, the report noted. For example, Senior Executive Service members told of higher levels of engagement than supervisors, who, in turn, were more invested in their work than nonsupervisory. Employees with higher salaries and more education also tended to be more engaged, according to the report. The board recommended that agencies foster engagement by improving new hire marketing, encouraging networking and rotating employees to different teams or organizations. Employees also should be shown that they are valued from their first day on the job, MSPB said, and agencies should have mentoring programs to help them define their roles. In addition, supervisors should use the various phases in the performance management process to provide guidance and feedback and to tell employees how their work contributes to the agency's overall mission.
3.2) Engagement equals productivity By Johann Tasker 05 October 2004
Employee engagement is a trusted motivational tool, yet only the most high-profile organisations are truly taking it seriously. If you were to ask people what it means to get engaged, most would probably glaze over and talk about true love, diamonds and wedding cake. Not Bob Arnold, director of strategy and human capital management at HR consultancy, Chiumento.Arnold is more likely to define engagement as a beneficial two-way relationship where employees and employers 'go the extra mile' for one another. Companies that get it right reap the rewards and so do their employees, he said.The benefits of having happy staff are well-documented. But the challenge for many organisations is showing that engagement brings a tangible return on investment - a process many companies find elusive."Engagement means different things to different people," Arnold said. "There was a risk that it would become just another buzzword, so settling on a definition gave us a lot of debate."With this in mind, Arnold embarked on a study with Personnel Today to find out what engagement meant to professionals in different organisations. The study, called Get Engaged, measured engagement levels and whether companies felt they were making progress. The results, drawn from a survey of 400 HR professionals conducted via the Personnel Today website, are surprising. One in four organisations admitted that staff were not engaged. A similar number said the situation had worsened in the past year. And 44 per cent said that tackling engagement was an overwhelming challenge."While many claim to be actively tackling the issue, it is worrying that a significant number don't know where to start," Arnold said. "But if you don't know where you are, it's difficult to know where to go."Asda topped the list of companies most admired for its abilities to engage staff, followed by Microsoft and Virgin companies. But manufacturing and retailing rank staff engagement lower than any other sector.
3.3) Cambridgeshire County Council -
Profile: 18,000 staff & turnover of £550m
Approach: it has had a formal people strategy since 2001 - it is clear about developing the organisation, having a single culture, employee development and creative ways to reward good performance. In 2005 the Institute for Employment Studies (IES) ran a culture audit out of which the ' Inspire Project' was born - the objective being to change the way people work and communicate. A new framework defining 17 behaviours was rolled out with the assistance of the Hay Group. The project included work on leadership development, with managers - including the Chief Executive - receiving 360-degree appraisals and team-building workshops.
It has also led to a new customer service charter and employee charter. The latter outlines not only what the Council can expect from its employees, but also what they can expect in return - " it is the psychological contract made explicit".
Impact: in HR benchmarks the Council has top quartile performance including absence management, and bottom quartile costs for HR service delivery. HR even sells its best practice to other public-sector organisations to generate revenue. The staff survey results are very strong:
85% of employees thought they were doing a worthwhile job
84% said that managers listened to their ideas
90% felt they had the chance to give feedback during appraisals; and
71% said they had enough opportunities to raise issues of importance
3.4) CIPD (2006c): Employee variations The final variable impacting on employee engagement relates to employees themselves. A number of studies have produced quantitative research findings that demonstrate the impact that biographical and job characteristics can have on employee engagement. One of the most in-depth was conducted by the Institute for Employment Studies ( IES) (as analysed by Robinson et al 2004) which analysed attitude survey data for 2003 from 14 organisations in the NHS (>10,000 completed questionnaires). The key findings were:
Biographical characteristics * Gender - the difference in engagement scores between men and women was not significant (although note that some surveys (see CIPD 2006c discussed below) find that females are generally more engaged than males - this difference may be due to the fact that the NHS study surveys across employees within the same organisation, whilst the CIPD survey cuts across a wide variety of industries and organisations). * Ethnicity - minority ethnic employees have higher engagement levels than their White colleagues. Black, Chinese and Asian employees have higher scores than those in Mixed and White groups. * Age - engagement levels go down slightly as employees get older - until they reach the oldest group, 60 and over, where the highest engagement levels of all are displayed. The high level of engagement levels expressed by experienced employees, who may be considered to be approaching the end of their working lives, suggests an untapped source of potential in many organisations. * Work-life balance - those in their 40s and 50s have the highest levels of workplace stress and are likely to find it difficult to balance work and home life. Robinson et al (2004) therefore suggest that attention to family friendly policies could increase the engagement levels for this group. * Caring responsibilities - the need for a family-friendly approach and greater emphasis on work-life balance is further underlined by the fact that employees with caring responsibilities for children have significantly lower engagement levels than those who have no caring responsibilities. * Medical - those with a disability/medical condition have lower engagement levels than those who do not have such a condition.
CIPD (2006c) also note the following regarding job characteristics: * Job group - the nature of the job makes a big difference to engagement levels. In general, managers and professionals have higher levels of engagement than do their colleagues in supporting roles. * Working pattern/hours - full-timers are significantly more engaged than part-timers, while employees who work days are more engaged than their colleagues on shifts or on a rota. This suggests that employers need to work harder with people who are not necessarily at work during 'standard' working times - to ensure that they receive communications, are managed effectively and have opportunities to grow and develop in their jobs. * Length of service - engagement levels go down as length of service increases - an indication to employers that they need to ensure that longer-serving employees continue to be exposed to new and interesting challenges.
3.5) Towers Perrin (2003) presents a range of engagement statements, many of which have elements common to the Robinson et al framework, including pride in being part of the organisation, advocacy about the products and services of the organisation, being inspired by the organisation to produce one's best work, and willingness to put in effort above and beyond normal expectations. Based on use of certain statements, Towers Perrin (2003) found that just 17% of respondents are 'highly engaged' whilst 19% were found to be 'disengaged. The remaining middle are considered to be the 'moderately engaged'.
3.6) RBS - How a major corporation uses its employee data -
Profile: The Royal Bank of Scotland Group ( RBS) has over 140,000 employees in 30 countries.
Approach: RBS has recognised that in an organisation of its size, understanding the effectiveness of its people strategy and 'employee proposition' is a strategic imperative. From 2003, RBS developed a human capital strategy that provides its leaders with a detailed understanding of how effective the group is at attracting, engaging and retaining the best people.RBS has adopted a human capital 'toolkit' which includes diagnostic tools, benchmarking resources and employee research and measurement tools.RBS employs the use of comprehensive surveys which benchmark performance and report on a variety of topics such as absence, turnover and diversity. However, the key to the human capital strategy is its annual survey of employee attitudes delivered to all 140,000 staff. The results are communicated around the organisation and managers are provided with an action plan so that at a local level, tangible actions are agreed and targeted." This is a sophisticated, business-focused strategy within which employee attitude surveys play a key role" (Aitken 2006 cited in CIPD (2006a))
Impact: RBS publishes its human capital measures in its annual accounts and in its corporate responsibility report. As Aitken highlights " By reporting how our people strategy drives business performance, we differentiate RBS Group as a great company to work for, invest with and bank with. Sharing our approach to developing a highly rewarding and productive workplace is a key part of this approach".
Implications for managers: Employee attitude surveys are a fundamental component of sophisticated strategies for managing human capital. Findings on employee engagement can be used to monitor performance, communication, diversity, leadership and work-life balance. Combining attitudinal data with other indicators in the organisation can provide managers with a greater understanding of the relationship between HR policies and practices and organisational performance. discretionary effort is the grail managers are seeking. Employees who freely give that extra effort are of tremendous value.General studies show that a 5% increase in employee engagement results in a 2.5% increase in growth. Growth measured by company value, which in the public sector is measured by stock value.The relationship between employee engagement, high performance, and company growth is compelling to say the least.
Table .1 Literature view on impact of engagement Impact of Employee Engagement | Statement | Source | "There are clear links between employee engagement and effectiveness, which, in turn, affect productivity. Employee engagement goes to the heart of organisational capability issues" | Briggs (2005), Australian Government Public Service Commissioner as cited in Meere (2005) | "….high levels of engagement have been found to be associated with a whole range of beneficial outcomes, including high levels of performance" | CIPD (2006c) | "….there appears to be a general willingness to accept the underpinning finding: the higher the level of employee commitment, the better the business outcome. If employee engagement is indeed one-step beyond commitment, the reward should be even greater" | Robinson et al (2004) | "….it takes little persuasion on a theoretical level to convince a business leader that employees who are more committed, work harder and smarter will be better for the company than those who turn up, do merely what they are obliged to do and leave" | Melcrum Publishing (2005) | "Your organisation's success depends on people's true engagement…..Research has shown that engaged employees make for a stronger organisation and better business results" | Right Management (2006) | "Employers want engaged employees because they deliver improved business performance" | CIPD (2007a) |

CHAPTER 4

INTRODUCTION
TO
EMPLOYEE ENGAGEMENT

Introduction:
Managers unequivocally agree that this century demands more efficiency and productivity than any other times in history. Businesses are striving to increase their performance. Managers have been grappling with many challenges to succeed putting their company ahead of competitors. Thanks to technology, nowadays business companies are making use of advanced techniques of operation. As sophistication of technologies continues to evolve, they pose more challenges for managers because organizations will have to need more number of employees with increased technical and professional skills. These knowledge workers cannot be managed with old styles of totalitarian management. They expect operational autonomy, job satisfaction and status. Employers now realize that by focusing on employee engagement, they can create more efficient and productive workforce. Any initiatives of improvement which are taken by management cannot be fruitful without wilful involvement and engagement of employees. Employee engagement as a concept is vast. Employee engagement is the thus the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. Thus Employee engagement is a barometer that determines the association of a person with the organization. Engagement is most closely associated with the existing construction of job involvement (Brown 1996) and flow (Csikszentmihalyi, 1990). Job involvement is defined as ‘the degree to which the job situation is central to the person and his or her identity (Lawler & Hall, 1970). Kanungo (1982) maintained that job involvement is a ‘Cognitive or belief state of Psychological identification. Job involvement is thought to depend on both need saliency and the potential of a job to satisfy these needs. Engagement differs from job in as it is concerned more with how the individual employees his/her self during the performance of his / her job. Furthermore engagement entails the active use of emotions. Finally engagement may be thought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs. When Kahn talked about employee engagement he has given important to all three aspects physically, cognitively and emotionally. Whereas in job satisfaction importance has been more given to cognitive side.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”.

CHAPTER 5

THEORETICAL FRAME WORK

5. THEORETICAL FRAME WORK
5.1Employee Engagement:-
For several years now, 'employee engagement' has been a hot topic in corporate circles. It's a buzz phrase that has captured the attention of workplace observers and HR managers, as well as the executive suite. And it's a topic that employers and employees alike think they understand, yet can't articulate very easily. Employee engagement as "a heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work".
Following 28 potential drivers, which are best suited to define the status of employee engagement, have been taken out of a pool of drivers suggested by various authors:

1 | Belief in Co’s direction | 15 | Leadership | 2 | Benefits | 16 | Organization Development | 3 | Career opportunities | 17 | Pay | 4 | Chief Executive Officer | 18 | Performance Review | 5 | Communication | 19 | Personal Growth | 6 | Company’s Values | 20 | Purpose in Life | 7 | Decision Making | 21 | Recognition | 8 | Direct Supervisor | 22 | Social Contribution | 9 | Environmental Mastery | 23 | Social Integration | 10 | Focused Work | 24 | Senior Managers | 11 | Human Resource Mgt. | 25 | Training & Development | 12 | Individual’s Own Values | 26 | Trust | 13 | Interpersonal Support | 27 | Work Group | 14 | Job Content | 28 | Work-Life Balance |
Source :IMI Report Employee Engagement survey of IOCL

We define employee Engagement as a psychological state in which in which employees feel a vested interest in the company ‘s success and are both willing and motivated to perform to levels that exceed the stated job requirements. Its reflects how employees feel about the overall work experience Employee Engagement foster & drives discretionary behavior, eliciting employees , highest productivity, their best ideas & their genuine commitment to the success of the organization.
Employee engagement, also called Work engagement, is a concept that is generally viewed as managing discretionary effort, that is, when employees have choices, they will act in a way that furthers their organization's interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work. Employee Engagement is now measured by items which have been linked to key business outcomes. It comes as no surprise, then, that engaged employees have been statistically linked with innovation events and better problem solving.Arnold is more likely to define engagement as a beneficial two-way relationship where employees and employers 'go the extra mile' for one another. Companies that get it right reap the rewards and so do their employees, he said. The benefits of having happy staff are well-documented. But the challenge for many organisations is showing that engagement brings a tangible return on investment - a process many companies find elusive."Engagement means different things to different people," Arnold said. "There was a risk that it would become just another buzzword, so settling on a definition gave us a lot of debate."
Example: Employee Engagement at IBM s Employee Engagement at Google: * The top 10 reasons to work at Google: * Lend a helping hand * Life is beautiful * Appreciation is the best motivation * Work and play are not mutually exclusive * We love our employees, and we want them to know it * Innovation is our bloodline * Good company everywhere you look * Uniting the world, one user at a time * Boldly go where no one has gone before * There is such a thing as a free lunch after all
GOOGLE - EMPLOYER OF CHOICE STRATEGY

5.2 UNDERSTANDING EMPLOYEE ENGAGEMENT IN THE PUBLIC SECTOR
Introduction
5.2.1 The objective of this review is the extent to which employee engagement varies between the public and private sectors. This is examined on two levels by following discussions: * Are there any fundamental differences in how employee engagement operates between the public and private sectors that would impact on interpretative models? In particular, do the drivers of employee engagement vary between the two sectors? And * What evidence, if any, is there on the effectiveness of employee engagement between the public and private sectors? Are there any marked differences between the sectors in terms of how engaged staff are?
Variations in employee engagement process
5.2.2 From analysis of the models presented, the differences between the public and private sectors have no impact whatsoever on how employee engagement works. This reflects the fact that the positive factors impacting on employee engagement apply with equal weight to the public and private sectors. In particular this includes: * The importance of providing high quality management, especially at supervisory and immediate line management level. * The importance of having a strong organisational vision and clarity in goals that are clearly articulated and communicated to staff at all levels. * The importance of engaging in effective two-way communication between the organisation and its staff.
No interpretative model of the employee engagement process assessed as part of the literature review has drawn any sectoral distinction: they are generic across all organisational types in the public and private sectors. This is a key finding of the literature review. However, the employee engagement outcomes do vary according to a range of factors reflecting organisational and employee characteristics. The aspiration to find a 'one size fits all' model does not apply, either to all individual employees or to all organisations. These variations are discussed below.
Variations in employee engagement outcomes
5.2.3 There is a surprisingly limited amount of research commenting on variances in employee engagement between the public and private sectors. This may relate to the fact that there is more in common between the sectors than there is variation and the principles of engagement tend to be generic across both sectors.For further understanding, CIPD (2006c) in a national survey of 2,000 UK employees found the following: * Hours worked - there are no differences between the public and private sectors in terms of hours worked. However, public sector workers are more likely to receive some compensation for working extra hours than those in the private sector; * Work-life balance - one would have expected that public sector workers would be receiving more help from their employer to achieve a good work-life balance, but actually there is no difference; * Employer negatives - public sector employees are more negative about their employers than their private sector counterparts, reporting that: * They are less satisfied with the opportunities they have to use their abilities * They are more stressed and under more pressure * They are more critical of their organisation * They are less likely to feel their senior managers have a clear vision for the organisation * They are also less likely to believe organisational communication. * Job positives - however, the public sector ethos is reflected in the fact that more public sector workers find their work worthwhile and personally meaningful. This is an important finding, that Penna (2007) presents a model whereby 'meaning at work' is at the apex of the model, and one of the most important factors in driving engagement.
5.2.4 Ipsos MORI (2006) has highlighted the need for public sector organisations to improve the way in which they manage change and develop leadership capability. The public sector usually trails the private sector in two key areas: change management and leadership capability (this is despite the fact that public sector employees report a greater level of contact with senior management). The Ipsos MORI (2006) research found that whilst around three-quarters of employees in both sectors understand the need for change, there is a large disparity in terms of those who support the need for change - with 75 per cent of employees in the private sector supporting the need for change, compared to 65 per cent in the public sector. Moreover, public sector employees are significantly more likely to feel that some of the changes being implemented are unnecessary: they believe that " there is too much change for change's sake". Thus it is imperative that managers fully engage staff in understanding the rationale for change, rather than just communicating the change to them, and support employees through the change process. In terms of the more practical aspects of change management, again public sector employees are more critical. A quarter of private sector employees, compared to just 15 per cent of public sector employees, believe that change is well managed in their organisation: see Figure 5.1
Figure 5.1 Perceptions of Change Management by Sector
Source: Ipsos MORI (2006)
The Ipsos MORI (2006) research highlights other areas in which public sector staff are usually more critical than their private sector counterparts: * Receiving recognition for good performance and providing opportunities for employees to let the organisation know how they feel about things that affect them in their work * Having adequate /sufficient facilities or resources to do their work effectively * The belief that their organisation puts customers first * Confidence that they are working for a successful organisation.
5.2.5 These findings are supported by research in Canada conducted by the Auditor General of British Columbia (Office of the Auditor General of British Columbia, April 2002). The British Columbia public service received an engagement rating of 59 per cent compared to 79 per cent for the top 50 companies to work for in Canada (Hewitt Associates: The 50 Best Companies to Work for in Canada, as cited in Office of the Auditor General of British Columbia 2002). In comparison to the leading private sector companies, British Columbia's public service employees are relatively happy with their work, are just as committed to staying with their employer, but due to a climate of distrust, a lack of confidence in their managers, they are not as proud of where they work. Only 43 per cent would highly recommend their department to a friend seeking employment, compared to 86 per cent in the comparison group. Again the public sector compares favourably in job content, but is weak in terms of organisational identity and advocacy amongst staff.

CHAPTER 6

INTERPRETATIVE MODELS
OF
EMPLOYEE ENGAGEMENT

INTERPRETATIVE MODELS OF EMPLOYEE ENGAGEMENT

Introduction
6.1 This chapter looks at the models of engagement as found throughout the literature. An employer's point of view, engagement is often about employees 'going the extra mile' or exerting 'discretionary effort'. However, employees will place different emphasis on the extent to which they value various factors in exchange for their discretionary effort. This chapter therefore examines the models of engagement in the literature to determine what the key drivers of engagement are, and the extent to which employees value these, and what employees find connects them to the organisation, motivates them to perform above and beyond expectations and compels them to actively promote the interests and objectives of the organisation. Although the organisation has primary responsibility for leading engagement, there are also secondary employee and job specific factors which can affect levels of engagement. These are also discussed in this chapter to provide a more comprehensive picture of the factors that determine engagement. The findings are presented under the following headings: * Modelling Engagement - a series of the most relevant interpretative engagement models are presented. * Role of Engagement in Organisational Outcomes - this section illustrates the mechanisms through which engagement can impact on organisational outcomes. * Self-developed Model Discussion-this section explains the self-developed model of employee engagement on the basis of basic understanding
Modelling engagement
6.2 As highlighted by CIPD (2007) there is no definitive all-purpose list of engagement drivers. There are many individual and organisational factors that determine whether employees become engaged, and to what extent they become engaged. This section highlights the models that illustrate these factors and the importance that employees place on them in becoming engaged.
6.2.1 The approach to employee engagement, discussed by Robinson et al (2004), stresses the importance of 'feeling valued and involved' as a key driver of engagement. Within this umbrella of feeling valued and involved there are a number of elements that have a varying influence on the extent to which the employee will feel valued and involved and hence engaged. Figure 5.1, which is based on a diagnostic model in Robinson et al (2004), illustrates the drivers of engagement suggested through a survey of over 10,000 NHS employees. Robinson et al (2004) state that this can be a useful pointer to organisations towards those aspects of working life that require serious attention if engagement levels are to be maintained or improved.
Figure 6.1 Robinson et al (2004) model of the drivers of employee engagement

Source: Robinson et al (2004)
What is noted from the model above is that some of these factors are what would be fundamental or contractual requirements for the organisation (the 'hygiene' factors), such as pay and benefits and health and safety, whereas others are the areas where the organisation must 'go the extra mile' to ensure effective communication, management and cooperation.
6.2.2 Penna (2007) presents a hierarchical model of engagement factors (see figure 5.2), which illustrates the impact each level will have on the attraction, engagement and retention of talent. They propose a model with "meaning at work" at the apex, which they maintain is borne out by the research carried out into meaning at work. In this context, Penna (2007) defines meaning at work as the situation where a job brings fulfilment for the employee, through the employee being valued, appreciated, having a sense of belonging and congruence with the organisation and feel like they are making a contribution. In this model, as the hierarchy ascends and the organisation successfully meets each of these engagement factors, the organisation becomes more attractive to new potential employees and becomes more engaging to its existing staff.
Figure 6.2 Penna (2007) model of hierarchy of engagement

Source: Penna (2007)
Interestingly in this model the 'hygiene' factors appear at the foundation of the model, indicating the nature of these factors as a necessary, but not sufficient, building block upon which the organisation must further develop in order to engage staff.
6.2.3 Work by Schmidt (2004) (see figure 5.3) frames engagement within the context of organisational health and Workplace Well-Being (WWB). Engagement is defined by Schmidt (2004) as the overarching label that brings employee satisfaction and commitment together. This model highlights the importance of commitment to the job as driven by job satisfaction, and also notes the importance of the supportive organisation. By creating the right conditions to generate high levels of employee engagement, the organisation can drive high performance - with high performance being defined as the achievement of the overarching public sector goal of advancing the public good. The model depicts the flow of organisational dynamics that begins with recruitment and moves through support for work, to workplace well-being, to engagement and finally to high levels of organisational performance.

Figure 6.3 Schmidt (2004) model of organisational dynamics in the public sector

Source: Schmidt (2004) This model implies that the foundations of engagement lie in policies to recruit and retain the right workforce (i.e. in terms of employing specific competences, knowledge and experiences required for success as well as diversity) and to promote health, safety, and well-being. Schmidt (2004) bases the model on a variety of studies and writings, implicit in which is the notion that it is WWB that drives engagement. CIPD (2007) concurs with this view of the importance of well being, stating that engagement is 'wholly consistent' with an emphasis on employee well-being.
6.2.4 A research report into employee engagement by Melcrum Publishing (2005) based on a global survey of over 1,000 multinationals concluded that from an organisation's point of view it is the senior executives that 'set the tone' of engagement in an organisation, whatever the size. There are a number of actions and strategies that senior management can make use of to inspire engagement among employees and motivate them to go the extra mile. The six top drivers of engagement from the senior management perspective were found to be: * Communicating a clear vision of the future * Building trust in the organisation * Involving employees in decision making that will affect them * Demonstrating commitment to the organisation's values * Being seen to respond to feedback * Demonstrating genuine commitment to employee's well being The same Melcrum Publishing (2005) report also examined the role of line managers in encouraging engagement. In this regard, the survey results imply that 'creating a climate of open communication' is the single most important action for line managers in affecting levels of employee engagement, with 60% of those surveyed claiming it is the most important element.
6.2.5 Regarding the importance of communication, Moorcroft (2006) discusses the restructuring that took place at the Royal Bank of Canada ( RBC) in 2004. It was noted at that time that there was a need to engage rather than inform employees and thus better align their performance with the organisation's vision and business goals. Formerly, communication strategies had focused on informing employees and creating awareness. However a new strategy was designed by the company in order to engage employees (and thus generate desired behaviours) that would help create outcomes (measurable effects) in support of the organisation's objectives. The strategy has four key objectives:
i) Help employees develop a better understanding of how what they do relates to the organisation's vision, strategies and goals; ii) Create a more dynamic and interactive communication environment that involves employees in thinking about and understanding how they can influence business results; iii) Ensure employees are getting the information they need to help frame and guide their day-to-day decisions; and iv) Promote and recognise the desired behaviours and outcomes in communication.
This strategy is illustrated by RBC in the following model:
Figure 6.4 RBC's new model of employee communication

Source: Moorcroft (2006)
The model (see figure 5.4 above) is based on engaging employees in the communication process in order to achieve the desired outcomes and thus build the business value. This is achieved by helping employees have a better idea of how what they do impacts upon the organisation and by promoting behaviours that help achieve organisational objectives. Moorcroft (2006) reports that the changes to employee communications are beginning to show solid results, with employee alignment and engagement scores improving. Interestingly, the communication budget has actually been reduced at the same time, illustrating that a more focused and thought through strategy can result in better value for money.

The role of engagement in organisational outcomes
6.3This section discusses the models that illustrate the place of engagement in the wider operations of the organisation and the mechanisms through which engagement can impact on the wider context.
6.3.1 The elements of various models that illustrate the nature in which engagement can have an impact upon the organisation. Heintzman and Marson (2006) use the private sector service-profit chain model as a basis for producing a public sector equivalent (see figure 6.5). They base the model on research carried out in Canada on what the top public sector challenges are, namely; * Human resource modernisation; * Service improvement; and * Improving the public's trust in public institutions.
Heintzman and Marson (2006) point out that the private sector has, for over a decade, documented the links between employee engagement and client satisfaction, and between client satisfaction and bottom line financial results. The authors note that the third element (the bottom line) cannot be transferred directly to the public sector but based on research on the link between public service outcomes and the public's rating of overall government performance, they suggest the following public service value chain:
Figure 6.5: Heintzman and Marson's (2006) public sector value chain

Source: Heintzman and Marson (2006).
6.3.2 A model produced by the CIPD (2006c) and presented in the organisation's Employee Attitudes and Engagement Survey' of 2006, brings various elements of employee engagement together in one overarching model (see figure 5.6). This then formed the basis of the survey, which was carried out across the private and public sectors. The model, which illustrates the linkages and important factors in each of these elements, is provided below, with arrows indicating directions of influence:
Figure 6.6: The CIPD (2006c) model of employee engagement model

Source: CIPD (2006c)
Individual factors are those such as gender, age, ethnicity and disability. Working life describes factors such as occupation, hours of work and pay, as well as important issues such as bullying or workplace harassment. * Management, leadership and communication refers to how employees view their managers and leaders, how much opportunity they have to participate in organisational decision making and levels of trust. As CIPD (2006c) highlights, these factors have been found in research to be very important in determining levels of engagement. This is also the area where managers can have an important influence. * An attitude to work refers to employees' perceptions of their jobs and includes levels of well-being, satisfaction, enthusiasm, commitment and loyalty. It is important to note here the two-way interaction in this model between attitudes to work and engagement. Whilst satisfaction, commitment, stress and loyalty factors feed into levels of engagement, it follows from the model that organisations that successfully engage their employees will engender greater levels of job satisfaction and loyalty, for example. * The engagement box itself refers to the CIPD's (2006c) three types of engagement - cognitive, emotional and physical. Finally, in the model above, engagement and attitudes to work lead to outcomes for the organisation, in terms of individual performance, intent to quit and absence levels.

6.4 EMPLOYEE ENGAGEMENT-1315HRS CLOCK MODEL (SELF-DEVELOPED)
The evolution of employee engagement as an increasingly popular concept is discussed. This model relates the conceptual framework of employee engagement to its evolutionary anecdotes i.e. employee commitment (EC) and employee organisation citizenry behaviour (E-OCB). This allows us to build a picture of engagement, and demonstrate how it means more than earlier concepts of commitment, employee organisational citizenship behaviour (OCB) with the financial and employee satisfaction objectives. This model states that when an organisation is tending towards achieving its financial objectives and e-satisfaction objectives it will attain the time zone called 1315 Hours which reflects the highest levels of the engagement of the employees in that organisation(see figure 5.7).

Figure 6.7 1315HRS CLOCK MODEL
IS

The model is divided in 2 time zones which include four stages. The hour hand of the clock in the model reflects that the organisation is tending towards the achievement of the financial objectives which has been set as a mandate for an organisation to achieve the state of employee engagement; and the minute hand of the clock shows the movement towards the achievement of e-satisfaction which has been found to progress through the states of employee commitment (EC), intermediate state (IS), employee organisational citizenship behaviour (E-OCB).The model is divided four following stages:

Stage 1:
It is the stage in the organisation (which are tending towards achieving the financial objectives) in which emphasises is on the satisfaction people get from their jobs and their colleagues, and the willingness of employees to go beyond the call of duty for the good of the organisation. Commitment is an important element of engagement, engagement is considered to be more than just employee commitment. The affective and continuance commitment are high in this stage.

Stage 2: It is a state of transition for the for the organisation when employees of the organisation starts tending toward the achievement normative commitment in which employees moral obligation to remain with an organisation with affective and continuance commitment. In this state organisations starts becoming highly productivity and certainly leads to creativity and innovation which are life line for the organisations in this turbulently changing time in business environment.

Stage 3:

It is a state in which the organisations the employees display behaviour that is discretionary or ‘extra-role’, so that the employee has a choice over whether they perform such behaviour. These behaviours include voluntarily helping of others, such as assisting those who have fallen behind in their work, and identifying and stopping work related problems in the first place. OCB links very strongly to employee engagement as it focuses on securing commitment and involvement which lies outside contractual parameters – often referred to as the individual ‘going the extra mile’.

Stage 4:
It is a state in which organisations starts their movement towards the state of employee engagement. Here, satisfaction objectives are also well addressed by the organisation which is more than it was in the earlier states. Engagement is a two-way mutual process between the employee and the organisation. In Sharpley’s (2006) definition of engagement there must be a mutual feeling of support between the employee and the organisation. According to CIPD (2007a) it is a combination of commitment to the organisation and its values plus a willingness to help out colleagues.

IS

Thus true engagement as every person in the organisation understanding and being committed to the success of the business strategy, and that this goes beyond more than just simple job satisfaction and incorporates aspects of commitment, pride and advocacy about the organisation’s products and brand. Whilst the onus is on the organisation to manage communication effectively to involve employees and align them with the organisation, this clearly requires input and feedback from employees as well to make the process work.

CHAPTER 7

MEASUREMENT AND MONITORING
OF
EMPLOYEE ENGAGEMENT

MEASUREMENT AND MONITORING OF
EMPLOYEE ENGAGEMENT

As highlighted by Robinson et al (2004) it makes sense for organisations to monitor the engagement levels of employees and to take action to increase these if necessary.
This chapter explores methods that have been suggested are good practice regarding how employee engagement can be measured. The chapter is structured under the following sections: * Measurement at the recruitment stage * Measurement among existing employees * Monitoring engagement.
Measurement at the recruitment stage
7.1 The Schmidt (2004) model on the organisational dynamics ofthe public sector noted that the foundation of the model on which workplace well-being, employee engagement and ultimately organisational performance and the furtherance of the public good was based, was recruiting and retaining the right workforce. Penna (2007) recommends that employers don’t just hire for competence but hire for attitude and alignment with the organisation’s values. On this basis, McGee (2006) discusses research by Development Dimensions International (DDI) which involved over 4,000 employees in a variety of industries and revealed six characteristics that predict the likelihood of individuals becoming engaged employees: * Adaptability; * Passion for work; * Emotional maturity; * Positive disposition; * Self-efficacy; and * Achievement orientation.

According to the research, it is these factors that can help to predict which candidates will perform effectively, derive satisfaction from what they do and become engaged.

McGee(2006) purposes that taking time to screen applicants for ‘engagement readiness’ will yield a far greater return in the medium term than hiring solely for skills and knowledge. It is worth noting the Schmidt (2004) model highlighted that recruiting the ‘right’ workforce is a requisite foundation to achieving outcomes further up in the model. However, the literature and future research could perhaps be more focused on exploring the links between aspects of the recruitment process and levels of engagement in organisations.
Measurement among existing employees
7.2 Clearly there is an onus on the organisation to retain key staff once they are recruited. Ellis and Sorenson (2007) highlight that the first step in improving employee engagement is to adopt a definition and assess current levels of employee engagement. In order to help identify whether the organisation has an engagement problem, they suggest a diagnostic checklist in which a positive answer to any of the following example statements indicates that engagement levels could be improved upon in the organisation: * People often come to meetings and nod in agreement but limited to no progress is made. * Superior performance is often undefined, unrecognised and/or unrewarded. * There is a lack of information sharing across business units, and a lack of collaboration toward common goals and results. * Employees feel far removed from the results of the business and have little understanding of how they can contribute towards the strategy. * People feel disconnected from the organisation’s customers.
Once it is identified that an engagement problem exists, the next step is to quantify the extent of engagement in the organisation and the amount and types of action required. It is important to identify how engagement levels among the existing staff body can be measured. In the literature, this usually takes the form of some sort of qualitative assessment across a range of factors, usually in the form of a staff survey. This section discusses several survey designs as found in the literature and makes an assessment of the key areas which form the basis for benchmarking and measuring employee engagement.

Monitoring engagement
7.3 However, what is missing from the literature is a discussion of an explicit monitoring framework detailing how changes in engagement can be measured, and how progression along a spectrum of engagement might be quantified. Although some of the literature places employees into categories of ‘engaged’ or ‘disengaged,’ or ‘highly’ or ‘moderately’ engaged, there is a lack of detail in the literature about monitoring progress in the literature and quantifying the steps between disengagement and engagement, for example.

Categories of Employee Engagement
According to the Gallup the Consulting organization there are there are different types of people:-
Engaged--"Engaged" employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. They're 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
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 so 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're "Consistently against Virtually Everything." They're not just unhappy at work; they're 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.
We have another categorization of employees on the basis of their engagement: Source: Blessing White (2007 )
Source: Blessing White (2007 )

Four Fundamental Actions Leading to Positive Results
1. Clarify Expectations
Create Goal Statements that formalize the following: * What is to be accomplished * Who will be involved * When the activity will be completed * How much it costs and which resources will be used
Evaluate work against measurable standards
-Positive Results will most likely include:
For the employee - * Less frustration and stress - clear direction * Higher level of motivation and satisfaction * A common or shared language * More effective communication with manager
For the manager - * More effective communication with team member * More focused and productive team member * Higher productivity and accomplishment of business goals * A common or shared language
2. Don't Leave Employees Out Of The Plan
Even the best plan can fail if the employees are not committed to it
Get Commitment
Get Accountability
-Positive Results will most likely include:
For the employee - * Higher level of motivation and engagement * Ownership to the process and to their own development * Commitment and accountability to the plan
For the manager - * A better performance plan overall - dual input * Higher level of commitment and accountability from team members * Streamlines work processes, saves time and money
3. Meet On An On-Going Basis To Share Feedback
Increase effectiveness of communication
Increase competence and confidence
Increase productivity and accuracy
Encourage a higher standard -Positive Results will most likely include:
For the employee - * Recognized for what they are doing well * Learn if "off course", receive guidance, and improve performance * Clearer sense of what's expected if goals change * Less frustration and stress due to more timely feedback and input
For the manager - * Time and opportunity to provide critical feedback * Learn valuable information and gain insights * Increased commitment, quality standards and productivity levels
4. Providing Factual / Behavior-Specific Feedback
Give specifics and facts of performance
Provide objective guidance and direction
Focus on behavior vs. attitudes or personal characteristics
Solve problems and move forward
-Positive Results will most likely include:
For the employee - * Commitment and accountability to changing their behavior * Feels treatment is fair, professional * Information provided is tangible, practical and actionable
For the manager - * Clarifies performance outcomes * Cultivates a more healthy environment * Increases levels of credibility and trust w/ team members

CHAPTER 8

RESEARCH DESIGN

8.1 STATEMENT OF THE PROBLEM

This Study will help us to understand the level and importance employee engagement in the organization (Indian Oil Corporation Limited) .This study will help organizations to have sight on how to monitor the level of engagement in the employees, how employees tend towards the state of engagement and how engaged employees are beneficial to the organizations. In this background this study tries to analyze the employee engagement in the organizations in general and in Indian Oil Corporation ltd(IOCL)particular. 8.2 OBJECTIVE OF THE STUDY * This study will help companies’ specially public sector companies about their grey areas in context to employee engagement. * This study will also help the organizations to understand the expectations of the employees.
8.3 Conceptual framework:
A conceptual framework has been evolved based on the study about Indian oil processes and secondary research. The study of the engagement in IOCL will be based on this framework. It will determine the engagement level by measuring the level of the drivers of the engagement in the organization; which will suggest the possible suggestions for the policy formulation by taking care of emotional and cognitive response of the employees thus resulting into employee engagement.

8.4 SCOPE OF THE STUDY

This study is limited to the employees in Pipelines Divisions Head Office of IOCL. The study will be able to reveal the satisfaction, motivation and overall level of engagement in the employees. It also help IOCL to know whether the existing policies and programs are really satisfying the needs and contributing to the productivity.

8.4 REASERCH METHODOLOGY

A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or event. This descriptive study is popular in business research because of its versatility across disciplines. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.
The major purpose of the study is description of the existing system at IOCL and finding gaps. The research was designed as a good research design facilitates the study and makes it as efficient as possible. A systematic research with structured and specified steps in specified sequence was designed and is as follows:
Step1: The objectives are specified with sufficient precision to ensure that data collected is relevant.(add conceptual framework).
Step2: The data collection method to be used is questionnaires, observations and discussions. While designing data collection procedure, adequate safeguards against bias and unreliability are ensured.
Step3: The questions are prepared in a clear, understandable manner.
Step4: The sampling design used is simple Random Sampling.
SAMPLE SIZE
To determine the effectiveness of system in the organization, I randomly selected a probability sample of 56 executives from the total population of 220 employees consisting of executives and non executives. The focus was to cover employees at all the levels in all the departments.
8.6 RESEARCH INSTRUMENTS:
The tools used for the data collection in the present study are: Questionnaire is designed to capture the perception of the employees. The questionnaire was designed for evaluating 09 different domains. These domains are: * * Career Progression

* Involvement and care

* Satisfaction and motivation

* Communication

* Pay & benefit

* Learning and development

* Work life balance

* Engagement

* Decision Making
Each of the above subscales is composed of certain questions that are rated on a five pointer scale. Respondents were asked to rate their job on each question by checking that they * strongly disagree 1 * disagree 2 * neither agree nor disagree 3 * Agree 4 * Strongly Agree 5 Each response item was assigned with an ordinal weight as mentioned above. Thus, higher scores indicate employee engagement. All 56 responses from 09 subscales were combined together to obtain an overall score.

Various statistical tools will be used to analyze the result and graphs formed to represent the findings: * MS-Excel * SPSS

8.7ACTION PLAN FOR DATA COLLECTION

To obtain the data free from errors, every step was performed carefully while collecting and recording information and tried to get complete, comprehensible and consistent data.
The data for the present research study was collected through two methods: 1. Primary data collection method 2. Secondary data collection method

8.7.1 PRIMARY DATA COLLECTION
Step1. A structured questionnaire with definite, concrete and highly specified questions was prepared in discussion with my industry guide. The rating scale used was Likert- type scales.
The respondents were asked to indicate their agreement or disagreement with each statement. Step2. Then it was distributed to a sample size of 56 covering employees from both executive and non executive levels. The questionnaire was designed in a way so as to include different aspects of Employee Engagement. (refer to annexure 1)
Step3. Along with distributing the questionnaires to employees, interviews were also conducted.
Step4. Some information/ data were also collected by observation of the functioning of HR department.

8.7.2 SECONDARY DATA COLLECTION
The secondary data was collected from companies manuals, reports and surveys conducted at IOCL, describing the different factors leading employee engagement. Precautions were taken to get only reliable & suitable data relevant for the study. The level of adequacy was also checked to get adequate and sufficient data.
Our methodology was structured in three phases as follows: 1) Search process – the identification of potentially relevant literature
2) Screening process – the review of documentation on the list to derive the most relevant literature and study models.
3) Analysis – analysis of the literature for better understanding and development of the model.
8.7.3 LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and careful planning but the time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

CHAPTER 9 ANALYSIS
AND
DISCUSSION

This chapter will analyze the responses of the questionnaire administered to the employees. Analysis will be based on the basic mean and standard deviation, correlation and factor analysis.
The questionnaire was designed for evaluating 09 different key drivers. These drivers are: * Career Progression

* Involvement and care

* Satisfaction and motivation

* Communication

* Pay & benefit

* Learning and development

* Work life balance

* Engagement

* Decision Making

9.1Analysis based on Means and standard deviations: The analysis of means can be done by plotting the following column graph which is representing the mean of the responses of the each question administered. Generally on the scale of 5 the score less than 2.5 is considered to be critical which reflects certain disagreement of the respondents on certain issue; also the scores more than 4 reflects the strong agreement of the respondents on certain issue.(refer to annexure 1)

* Here 2.45 value is corresponds to the change related communications in the organisation. The respondents have general disagreement on the fact they are not well communicated about the change irrespective of its impact (whether positive or negative). * Also the respondents highly agree on the fact that they are willing to give extra effort to help their organization succeed as depicted by high score of 4.50.This is a clear indicator of the high number of the engaged employees in the organization. Standard Deviation: The analysis of standard deviations can be done by plotting the following column graph which is representing the standard deviations between the responses of the each question administered. Here the deviations more than 1 are considered to be the significant values and used for the further analysis. (refer to annexure 1)

* The highest value that is apparently quite indicative is 1.29 which suggests that there is wide difference in the opinion of the employees regarding the job rotations and internal transfers in the organisations i.e. organisation needs to improve on the grounds of transfer policies and job rotations to satisfy a wider section of the employees. * The interesting fact which is being depicted here is in context to the work-life balance. There is a significant deviation in the responses from the respondents i.e. 1.05.The contribution of this factor in determining the employee engagement can be analysed by further analysis. S.No | Factors | Mean | Std Dev | 1 | Career Progression | 3.93 | 0.79 | 2 | Invovement and care | 3.54 | 0.65 | 3 | Satisfaction and motivation | 3.97 | 0.95 | 4 | communication | 3.32 | 0.89 | 5 | pay & benefit | 3.88 | 1.10 | 6 | learning and development | 3.55 | 1.00 | 7 | work life balance | 3.64 | 0.74 | 8 | Engagement | 4.02 | 0.84 | 9 | Decision Making | 3.84 | 0.86 |

9.2 Analysis Based on Correlation and factor analysis

The correlation has been studied under the above mentioned 9 domains. The questions under each domain must be significantly and positively correlated because they measure the underlined dimension.

* A significant result has been observed as the indicators of motivation and satisfaction are highly correlated to each other.

* It has been observed that the effective communication regarding policy implementation and change are the factors which need to be addressed.

* Respondents are highly satisfied with their pay packages and benefits provided to them by the organisation. This may be a resultant of the recent pay revisions. * Despite of the significant level of training programs being conducted respondents are sceptical about the development in the organisation in context to the job rotations and internal transfers. * The indicators in the correlation analysis show that there is a tending towards high level of engagement in the employees of the organisation. Analysis Based on Factor Analysis: Eigen value associated with each linear component before extraction, after extraction and after rotation is obtained. The components with the Eigen value above 1 are considered to be significant. The first 7 components explain a significant set for the determination of the engagement levels. This condition is also satisfied with the interpretation of the scree plot. The before rotation values of the % variance of the Eigen values gives 38.2% to the first component which is quite high in weight age thus the rotated values are used which distribute the % variance amongst the significant components. The 7 significant components selected have certain indicators which are determinants of that component are as following: Component1: The major constituents of this component reflect it to the organisation having a special to the respondents. Thus it can be named as “Identifying with the organisation”. Component2: The major constituents reflect a common theme of 2 way relationship between employee and employer.Thus it can be named as “Contract”. Component3: The major constituents of the component 3 points towards the importance and learning through training programs in the organisation, thus it can be named as “Learning”. Component4: The major constituents here are related to the pay and benefits thus clearly it can be named as “Pay and benefit”. Component5: There is no proper factorization in this component but the general trend is about the values, mission and vision of the organisation. Component6: The major constituent of the this component is balance between personal and professional life, which has been discussed in following discussion. Thus it can be named as “work life balance”. Component7: The major constituent of this component are related to communication which is negatively correlated to other factors. Communication regarding the policy implementation and regarding change have been highlighted here. Thus it can be named as”communication”. 9.3Discussions:
Robinson et al (2004) model (refer to5.2.1) of the drivers of employee engagement sets a coordination with this analysis. As the employees score high scorers on most of the aspects discussed in the model. It has high level of motivation and satisfaction amongst the employees .Involvement and care domain has also shown positive results thus leading towards the engagement of the employees.
Penna (2007) model of hierarchy of engagement (refer to 5.2.2) holds true in context to this survey conducted. We have seen that the basic needs in the engagement hierarchy are well addressed by the organisation. When moving up in the hierarchy there is high level of trust and respect in the organisation leading to attainment of the state called “meaning”.
RBC's new model of employee communication (refer to 5.2.5) is quite significant to the organisation. According to the analysis it can be noted that it is the time to engage rather than inform employees and thus better align their performance with the organisations. The inform part is very important to attain engagement in the organisation. The organisation need to generate a system to keep their employees better informed which gives a pointer towards effective communication and expert change management.

Recommendations: * Communication: Focus on the communication channels and improvement in their efficiency is highly recommended. Also change management is needed to be addressed. A survey purely based on the various factors related to the communication is also recommended which will point out the weaker links in this area and thus can be improved upon. * Job Rotation and Internal Transfers: It is recommended that there must be timely job rotation and internal transfers. Inadequacy in this area may lead to disengagement of the employees. Thus the focus is needed in this area too.

* Work –life Balance: It is recommended that there is need for more frequent social get-togethers of employees and their family to maintain adequate work life balance

REFERENCE

Chartered Institute of Personnel and Development (CIPD) (2005)Reward Management surveys. Available online at http://www.cipd.co.uk/subjects/pay/_rewrdmansurv.htm?IsSrchRes=1 Chartered Institute of Personnel and Development (CIPD) (November 2006b) Annual survey
2006: How engaged are British employees. Available online at http://www.cipd.co.uk/NR/rdonlyres/E6871F47-558A-466E-9A74- 4DFB1E71304C/0/howengbritempssr.pdf
Confederation of British Industry (CBI) (May 2006) Working Together: Embedding Good
Employment in Public Services. Available online at http://www.cbi.org.uk/pdf/workingtogether0706.pdf Ellis, Christian M. and Sorensen, A. (2007) Assessing employee engagement: the key to improving productivity. Perspectives Vol 15 no 1 January 2007. Available at http://www.sibson.com/publications/perspectives/Volume_15_Issue_1/ROW.cfm Heintzman, Ralph and Marson, Brian (June/July 2006) People, service and trust: links in the public sector service value chain. Canadian Government Executive.
Available online at http://www.hrma-agrh.gc.ca/veo-bve/publications/atricle_e.asp
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Available online at http://www.ipsos-mori.com/publications/mis/change-management-andleadership.shtml

Penna (2006). Meaning at Work Research Report. Available online from http://www.epenna. com/newsopinion/research.aspx Towers Perrin (2003) Working today: understanding what drives employee engagement.
Towers Perrin. Available online at http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/USA/2003/200309/Talent_200 3.pdf

www.scotland.gov.uk/socialresearch

Annexure 1: Questionnaire Employee Engagement Questionnaire | Employeee engagement level in the organisation deteremines the level of organisational commitment and job involvement. | | Please read the following statements and rate them | | | | | | | 1.Strongly disagree 2. Disagree 3. Do not know 4. Agree 5. Strongly agree. | | | | | | | S.No | Satatement | | | | | | 1 | I have appropriate personal and professional growth | 1 | 2 | 3 | 4 | 5 | 2 | There are sufficient opportunities and responsibilities for career development | 1 | 2 | 3 | 4 | 5 | 3 | I like my work in the organisation | 1 | 2 | 3 | 4 | 5 | 4 | At work, my opinions seem to count | 1 | 2 | 3 | 4 | 5 | 5 | I am truly appreciated for the Contribution I make to the organization | 1 | 2 | 3 | 4 | 5 | 6 | Company provides me training to help me build skills required for my job. | 1 | 2 | 3 | 4 | 5 | 7 | I feel motivated and learn through company's training programmes | 1 | 2 | 3 | 4 | 5 | 8 | The benefits offered are fair and reasonable and is comensurate with my responsibilities | 1 | 2 | 3 | 4 | 5 | 9 | There are Inadequate opportunities for job rotation and internal transfers | 1 | 2 | 3 | 4 | 5 | 10 | Changes that may affect me are communicated to me prior to implementation | 1 | 2 | 3 | 4 | 5 | 11 | Mission/vision of the company make me feel that my job is important | 1 | 2 | 3 | 4 | 5 | 12 | Organization policies are clearly communicated | 1 | 2 | 3 | 4 | 5 | 13 | I know what is expected of me at work | 1 | 2 | 3 | 4 | 5 | 14 | Working in this organisation has a special meaning to me | 1 | 2 | 3 | 4 | 5 | 15 | I feel part of a team working towards a shared goal | 1 | 2 | 3 | 4 | 5 | 16 | I feel I am valued in this organization | 1 | 2 | 3 | 4 | 5 | 17 | I see trust and respect in our workplace | 1 | 2 | 3 | 4 | 5 | 18 | Employees with creative ideas are not recognized and appreciated | 1 | 2 | 3 | 4 | 5 | 19 | I would recommend employment at my company to a friend | 1 | 2 | 3 | 4 | 5 | 20 | Overall, I am satisfied with this organization as an employer | 1 | 2 | 3 | 4 | 5 | 21 | My organization gives me enough recognition for well performed work | 1 | 2 | 3 | 4 | 5 | 22 | I feel motivated while performing tasks assigned to me | 1 | 2 | 3 | 4 | 5 | 23 | I am given enough authority to make decisions required for my job | 1 | 2 | 3 | 4 | 5 | 24 | Overall, I'm satisfied with this organization's pay package | 1 | 2 | 3 | 4 | 5 | 25 | I feel motivated with social contribution of my company | 1 | 2 | 3 | 4 | 5 | 26 | I am able to maintain balance between my professional and personal life | 1 | 2 | 3 | 4 | 5 | 27 | I am willing to give extra effort to help my company succeed | 1 | 2 | 3 | 4 | 5 | 28 | I believe in core values of my organisation | 1 | 2 | 3 | 4 | 5 | | | | | | | | | | |