Impact of Organizational Culture and Communication on Employee Engagement: An Investigation of Indian Private Banks

Abstract

Banking sector in India has undergone tremendous change in its operations in the last decade. Owing to a highly competitive scenario; it is pertinent to note that banks need to differentiate themselves from each other. They need to have employees who are passionate about their work and strive to take their organization to greater heights. The scope of the study is the strength and impact of the organizational culture and communication on facilitating employee engagement is measured in the Indian private banks. The sample consists of 247 executives drawn from this sector. This study has a practical implications for the banking sector at large, and has established connections between organizational culture, communication and employee engagement. It has unraveled the dimensions of organizational culture and communication which need to be focused for enhancing vigor, dedication and absorption of employees. INTRODUCTION Success stories of flourishing business organizations have been scripted on contributions made by engaged employees. They profoundly express themselves physically, cognitively and emotionally during performances in various roles in the They act as a drivers of financial and market success. They give stellar performances by trying to stretch themselves and continuously strive to outperform by setting new standards of excellence. Owing to this, enhancing employee engagement has gained momentum in business organizations across the globe. Engaged employees drive more profits by being productive, focused in their goals and efforts, and enjoy work and continue to stay with the company (Gallup, 1999). It is closely linked to the attrition of employees, increased satisfaction of customers, internal and external client loyalty, enhanced productivity, improved standards of safety and sustainable profits (Harter et al., 2002). Studies by Tower Perrin (2003) linked the same to the customer impact and financial results. They are not just committed and satisfied but are passionate about their work. Increased contributions of engaged employees towards their job and organization have been instrumental in making it an endeavour of every business According to Watson Wyatt (2002) consulting companies, as global organizations continue to operate in dynamic and virtual contexts, the need to engage employees has become more profound. According to them, these employees have a 'line of sight' and exert discretionary efforts for the organization. They are assets for assured organizational success (Johnson, 2011). DRIVERS OF EMPLOYEE ENGAGEMENT Employee engagement is an outcome of interplay of several individual and organizational factors at work. The antecedents of employee engagement have not been exhaustively identified but can be inferred from Kahn's (1990) and Malash et al. (2001) model. Towers Petrin (2003) identified top management's interest and vision for employees' well-being, challenging and enriched work content, autonomy, career growth opportunities, employer brand, collaborative work environment, availability of resources to get work done as drivers of employee engagement. Similarly the Development Dimensions International (2005) highlighted three main drivers of engagement: employeejob fit, visionary leadership and healthy organizational systems and strategies. Previous studies suggest that organizational culture enhances intrinsic motivation, employee commitment, job-involvement and job-satisfaction (Fogarty, 2000; Russo, 1 998; and Woodruffle, 2006) . Employees also perceive a sense of worth and belongingness if they are well communicated by the superiors, subordinates and colleagues (Hatch, 1966). Studies undertaken by Towers Perrin (2003), Watson (2006) reflect that communicational climate and styles of supervisors impact employee engagement. Havill (2010) refers communication as one of the drivers of engagement for accounting firms. According to Saks (2006) organizations striving to enhance engagement levels of employees should aim at capturing perception of employees towards support and encouragement provided by the organization through appropriate channels and suitable cultural practices. …

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