IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT IN UAB BALTIC GROUND SERVICES AND BALTIC GROUND SERVICES SP. Z O.O. A Thesis Presented to the Faculty of the International Business and Communication Program at ISM University of Management and Economics in Partial Fulfillment of the Requirements for the Degree of Bachelor of Management by Smiltė Narkovičiūtė Advised by Doc. Dr. Raimonda Alonderienė January 2015 Vilnius IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 2 Abstract Narkovičiūtė, S., Improvement of employee work engagement in UAB Baltic Ground Services and Baltic Ground Services Sp. z o.o. [manuscript]: Final Bachelor Thesis. International Business and Communication. Vilnius, ISM University of Management and Economics, 2015. This paper analyzes the current level of employee work engagement of the administration employees of UAB Baltic Ground Services and Baltic Ground Services Sp. z o.o and provides solutions on its improvement. The theoretical research was conducted, in order to define the antecedents, influencing employee work engagement, as well, as the positive outcomes occurring, when the level of work engagement is high in the organization. Quantitative research was conducted, in order to find out the level of employee work engagement in UAB Baltic Ground Services and Baltic Ground Services Sp. z o.o. Further, the empirical research provided valuable information about the level of four antecedents – job characteristics, perceived organizational support, perceived supervisor support, and rewards and recognition – experienced by the administration employees of both of the companies. All of the antecedents correlated with employee work engagement, but job characteristics and perceived organizational support were listed as the most influential antecedents on employee work engagement in this research. Finally, managerial solutions were provided, in order to improve employee work engagement in UAB Baltic Ground Services and Baltic Ground Services Sp. z o.o. Keywords: employee work engagement, job characteristics, perceived organizational support, perceived supervisor support IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 3 Table of contents Abstract .......................................................................................................................... 2 List of tables ................................................................................................................... 5 List of figures ................................................................................................................. 6 Introduction .................................................................................................................... 7 Analysis of Situation .................................................................................................... 10 Financial Performance of “Baltic Ground Services” ............................................... 12 Future Expansion of “Baltic Ground Services” ....................................................... 14 External Environment Analysis of “Baltic Ground Services” ................................. 14 Macro environment analysis. ............................................................................... 14 Competitors. ......................................................................................................... 22 Internal Situation Analysis of “Baltic Ground Services” ......................................... 24 UAB Baltic Ground Services human resource management ............................... 24 Baltic Ground Services Sp. z o.o. human resource management ........................ 28 SWOT Analysis ....................................................................................................... 30 Theoretical Foundation of the Problem ................................................................... 33 Definition of employee engagement .................................................................... 33 Characterization of employee engagement .......................................................... 38 Antecedents of employee engagement................................................................. 40 Outcomes of employee engagement. ................................................................... 44 Theoretical model of employee engagement ....................................................... 45 Empirical Research ...................................................................................................... 46 Aim and Objectives.................................................................................................. 46 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 4 Research Method and Data Collection Method ....................................................... 48 Research Sample ...................................................................................................... 50 Research Instrument................................................................................................. 52 Job characteristics ................................................................................................ 54 Perceived organizational support ......................................................................... 54 Perceived supervisor support ............................................................................... 54 Rewards and recognition...................................................................................... 54 Employee work engagement ................................................................................ 55 Data Analysis Methods ............................................................................................ 56 Results of the Empirical Research ........................................................................... 58 Descriptive statistics ............................................................................................ 58 Correlational relationships ................................................................................... 64 Multiple linear regression. ................................................................................... 68 Managerial Solutions ................................................................................................... 70 Job Characteristics ................................................................................................... 71 Perceived Organizational and Supervisor Support .................................................. 74 Rewards and Recognition ........................................................................................ 77 General Suggestions................................................................................................. 78 Conclusions .................................................................................................................. 78 Limitations ................................................................................................................... 81 References .................................................................................................................... 82 Appendices ................................................................................................................... 91 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 5 List of tables Table 1. Annual Revenues from sales to external customers in a segment of Aircraft Ground Handling and Fuelling................................................................................................ 12 Table 2. Annual Revenues from sales to external customers of BGS PL ..................... 13 Table 3. SWOT analysis of BGS LT ............................................................................. 31 Table 4. SWOT analysis of BGS PL ............................................................................. 32 Table 5. Structure of the questionnaire ........................................................................ 53 Table 6. Cronbach’s alpha. Internal consistency of each scale of the survey .............. 56 Table 7. Correlation table; dependent variable – employee work engagement .......... 66 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 6 List of figures Figure 1. Theoretical model of employee work engagement, antecedents and outcomes included. .................................................................................................................. 46 Figure 2. Theoretical model of employee work engagement, antecedents included. .. 47 Figure 3. Means of job characteristics in BGS LT and BGS PL. N=40 ...................... 59 Figure 4. Means of perceived organizational support (POS) in BGS LT, BGS PL. .... 60 Figure 5. Means of perceived supervisor support (PSS) in BGS LT and BGS PL. ..... 60 Figure 6. Means of rewards and recognition (R&R) in BGS LT and BGS PL. .......... 62 Figure 7. Means of employee work engagement and its dimensions – vigor, dedication, and absorption – in BGS LT and BGS PL. ............................................................ 64 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 7 Introduction Globalization has developed a more competitive environment for organizations (Choo, Mat & Al-Omari, 2013). Companies seek for new methods and theories that could be applied to their organizations, in order to gain competitive advantage. Employee work engagement received a lot of attention in the last decade (Choo, Mat & Al-Omari, 2012), in both, academic works and practical studies. It is a human resource management concept, first conceptualized by Kahn (1990). Employee work engagement is claimed to be a strong competitive advantage, influencing organizational effectiveness, innovation and success (Welch, 2011). Employee work engagement defines the level of energy, enthusiasm, and engrossment, experienced by an employee in one’s work role (Macey & Schneider, 2008; Slåtten & Mehmetoglu, 2011; Schaufeli, Salanova, González-Romá, & Bakker, 2002). Though the concept of employee work engagement is an important human resources aspect, not all organizations rush to implement appropriate solutions to increase it. Lithuanian companies, as well as their subsidiaries, are only beginning to get acquainted with the concept of employee work engagement. A company group “Baltic Ground Services” has been studied for this paper, or more precisely: a parental Lithuanian company, UAB Baltic Ground Services (abbreviated BGS LT), and its Polish subsidiary, Baltic Ground Services Sp. z o.o. (abbreviated BGS PL). Though companies have a so-called protocol of defined human resource processes, executed within the organization – they lack an in depth analysis of their employee engagement. Furthermore, besides the different measures companies employ, in order to create a positive work environment, they believe that a more thorough approach would be needed. Therefore, it is important to analyze the significance of employee work engagement to the organization, and to reveal the key factors for improvement. The problem analyzed in this bachelor thesis – How to improve employee work engagement in UAB Baltic Ground Services and Baltic Ground Services Sp. z o.o.? IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 8 Aim of this bachelor thesis is to analyze current level of employee work engagement in UAB Baltic Ground Services and Baltic Ground Services Sp. z o.o. and provide solutions on its improvement. The objectives of this bachelor thesis are the following: 1. To analyze the internal situation and the external environment of BGS LT and BGS PL, and to reveal the importance of employee work engagement to an organization through theoretical aspect. 2. To perform an empirical research, in order to measure the level of employee work engagement in BGS LT and BGS PL. 3. To provide recommendations on the improvement of employee work engagement in BGS LT and BGS PL. In order to reach the aim and to accomplish the objectives of this bachelor thesis, the analysis of appropriate literature was conducted. The quantitative research method was chosen, in order to evaluate the level of employee work engagement in BGS LT and BGS PL. Organizations are increasingly interested in employee engagement, as it is proven to be positively related to employee work-related well-being and job performance. (Bakker, Schaufeli, Leiter, Taris, 2008) As human resources are the crucial element of any organization and its success, companies are investing more effort into finding the key factors, which influence the employee performance. According to Bakker et al. (2008), work engagement is a reason for better job performance, as it provides employees with positive emotions, better psychological and physical health. Therefore, the results gathered from the literature review and the empirical research will be relevant to the companies of “Baltic Ground Services”, in order for them to understand the importance of work engagement and to improve it amongst their employees. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT The structure of this bachelor thesis is divided into three parts. The first part, analysis of situation, is divided into three sections – external environment analysis of the companies, internal situation analysis of BGS LT and BGS PL, and theoretical foundation of the problem. External environment analysis consists of a detailed description of the companies, PESTEL analysis of both, Lithuanian and Polish markets, main competitors in both markets and SWOT analysis. Internal situation analysis contains an analysis of an organizational structure and human resources management peculiarities. The theoretical foundation reveals the significance of employee work engagement in an organization and analyzes the antecedents, which influence employee engagement, as well as, the outcomes. The second part of this bachelor thesis is the empirical research, which is conducted in order to measure the level of employee work engagement in BGS LT and BGS PL. The relation between employee work engagement and the antecedents is revealed. The process and the results of the empirical research will be discussed in detail. Further, the managerial solutions will be suggested to the companies, in order to improve the level of employee work engagement, based on the theoretical foundation and the empirical research conducted. 9 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 10 Analysis of Situation The purpose of situation analysis is to determine and evaluate the current situation of the company. Firstly, the general information about AB Avia Solutions Group (abbreviated ASG) will be overviewed, as “Baltic Ground Services” is a direct subsidiary, and they are highly interdependent. Secondly, general information, such as the main activities of “Baltic Ground Services”, geographical coverage, current financial situation, future development plans, organizational structure, their mission, goals and values, will be given to set an overall understanding of the company. To start with the description of ASG, it is a group of companies globally providing aviation business solutions for aircraft owners and operators with its headquarters in Vilnius, Lithuania. It is the first Lithuanian company to be listed on the Warsaw Stock Exchange (WSE). The overall services that the company group provides include MRO (Maintenance, Repair and Overhaul) and supply chain, crew training, aviation staff leasing, ground handling and aircraft fuelling, aircraft management and business charter services (Avia Solutions Group AB, 2014a). The group operates across Europe, the CIS (Commonwealth of Independent States) and Asia-Pacific regions through the subsidiaries. Its representative offices are located in Lithuania, Poland, Italy, the United Kingdom, Russia and Malaysia (Avia Solutions Group AB, 2014a). The product or service groups, which each company provides, divide the corporate structure of ASG. ASG acquired UAB Baltic Ground Services (abbreviated BGS LT), which is a limited liability company, in October 2008. Its headquarters are in Vilnius, Lithuania. Company group “Baltic Ground Services” operates in Lithuanian, Polish and Italian airports. It has 20 years of experience and a highly qualified team of professionals. The main activity fields covered by “Baltic Ground Services” are: IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 11 Passenger handling includes services like: check-in and boarding passengers, ground transportation, charter passengers, lost and found, ticketing; Aircraft handling includes services like: marshalling, ASU services (e.g. lavatory, water supply, de-icing, etc.), baggage handling, GPU (ground support equipment), aircraft cabin and exterior cleaning, cabin heating, aircraft moving (aircraft towing, pushback); Fuelling; Catering delivery; Airport terminal engineering; Hazardous freight. BGS LT is based in Vilnius International Airport, which is Lithuania’s busiest airport, and Palanga International Airport. Baltic Ground Services Sp. z.o.o. (abbreviated BGS PL), a limited liability company, was established in 2010 as a direct Polish subsidiary of BGS LT (Avia Solutions Group AB, PricewaterhouseCoopers UAB, 2014). It provides ground handling services at Warsaw Chopin Airport, which is Poland’s busiest airport, handling almost 50% of the country's air passenger traffic (Warsaw Frederic Chopin Airport, 2015). BGS PL also provides into-plane fuelling services in the second and third busiest Poland’s airports - John Paul II International Airport Kraków - Balice Ltd and Katowice International Airport, respectively (Baltic Ground Services, n.d.a). As BGS PL additionally operates a license for ground handling at other three airports in Poland: Wroclaw, Gdansk and Poznan – the further development is planned in this direction (Baltic Ground Services, n.d.a). Another direct subsidiary of BGS LT was established in winter of 2010, in Italy. Baltic Ground Services s.r.l. is a provider of ground handling services only. It is based in IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 12 Lamezia Terme Airport, which is the most important Calabrian airport (Baltic Ground Services, n.d.a) Financial Performance of “Baltic Ground Services” The second largest segment of ASG is Ground Handling and Fuelling. Therefore, “Baltic Ground Services” plays an important part in financial performance of ASG. It is important to note that due to financial confidentiality of “Baltic Ground Services”, the company group presented a proportion of 40/60, by which there is a possibility to count approximate annual revenues of both Lithuanian and Polish subsidiaries of “Baltic Ground Services”. As suggested, 40% of sales to external customers are accounted to Polish subsidiary BGS PL and 60% of sales are accounted to Lithuanian BGS LT. The annual revenues of Italian subsidiary, Baltic Ground Services s.r.l., make less than 1% of overall segment, thus the CFO of ASG suggested not taking it into account. The annual revenues are used in this report to show the annual growth of the companies, and to make the assumptions of overall performance. Moreover, the financial performance overlaps with human resource practices, and predicts the human resource capabilities of the company. The total annual revenues from sales to external customers in a segment of Aircraft Ground Handling and Fuelling are presented in Table 1. Table 1 Annual Revenues from sales to external customers in a segment of Aircraft Ground Handling and Fuelling Year 2009 2010 2011 2012 2013 Annual Revenue EUR, Millions 3,134 16,688 30,372 63,250 59,768 Annual Growth N/A 432.5% 82% 108.3% (5.5%) (All tabular amounts are in EUR ‘000) IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 13 Note. Created by author, according to Avia Solutions Group AB, PricewaterhouseCoopers UAB, Independent Auditor’s Report For the Year Ended 31 December 2010/2011/2012/2013. Analysing Table 1, the reason for a rapid growth of Aircraft Ground Handling and Fuelling segment revenues in 2010 (increase of 432.4%) was mainly the Jet A-1 fuel sales to airlines in Vilnius International Airport (Avia Solutions Group AB, 2011). In 2012 the significant growth of 108.3% was driven by appearance of new ground handling and aircraft fuelling contracts with airlines in Vilnius, Warsaw, Krakow and Katowice International Airports (Avia Solutions Group AB, 2014b). Revenues from sales to external customers decreased by EUR 3,482 million (decrease of 5.5%) and amounted to EUR 59,768 million in 2013. The decrease was caused by fallen aircraft fuel contracts in Poland (Avia Solutions Group AB, 2014b). The annual revenues from sales to external customers of BGS PL (presented in Table 2) are retrieved using a proportion 40/60. 40% of Aircraft Ground Handling and Fuelling sales, presented in Table 1, are accounted to the Polish subsidiary. As BGS PL was established in 2010, the financial data is given in a period of 2010-2013. Table 2 Annual Revenues from sales to external customers of BGS PL Annual Revenue Year 2010 2011 2012 2013 EUR, Millions 6,675 12,149 25,300 23,907 Annual Growth N/A 82% 108.2% (5.5%) (All tabular amounts are in EUR ‘000) Note. Craeted by author, according to Avia Solutions Group AB, PricewaterhouseCoopers UAB, Independent Auditor’s Report For the Year Ended 31 December 2010/2011/2012/2013. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 14 Future Expansion of “Baltic Ground Services” One of the ASG companies – Ramport Aero OAO – has recently engaged in the development of the Moscow’s fourth airport – Ramenskoye International (Ramport Aero OAO, n.d.). It has presented “Baltic Ground Services” company group with new expansion opportunities. Based on a press release published in “verslozinios.lt” on 11th of September 2014, and on internal information of ASG, the executive board of the company group decided to offer additional shares emission after the extraordinary shareholder’s meeting on 24th of September 2014. According to the sources, after the successful redemption of newly issued shares, the company group would attract around EUR 14,94 Million. The received funds would be invested into the development of projects in Europe and Asia, for example, airport Ramenskoye International (verslozinios.lt, 2014). The main investments to “Baltic Ground Services” would be through the purchase of new equipment and the establishment of ground handling services base in Ramenskoye International. It is expected to be a successful starting point for “Baltic Ground Services” company group, entering a new market. External Environment Analysis of “Baltic Ground Services” Macro environment analysis. To further study the companies and their macro environment, I will use PESTEL (political, economic, social, technological, environmental, legal factors) analysis, which will give a more clear understanding of the factors that may affect the companies. Some of the most important indicators of macro environment are tax policies, trading agreements, governmental attitudes and approaches towards foreign business, demographic forecasts, and environmental policies. PESTEL analysis. Political factors. The political environment of the country has significant influence on business structure, company strategy and human resource management. First, political factors of Lithuanian market will be presented. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 15 After the fall of Soviet Union, Lithuania consolidated democratic governance. Furthermore, it is a member of European Union. Therefore, it is an attractive political environment for businesses. The level of corruption in Lithuania is an obstacle to businesses. Layered bureaucratic system slows down country’s economy and complicates legal and administrative business processes. According to Transparency International’s 2013 Corruption Perceptions Index, Lithuania ranked 43rd out of 177 countries. Moreover, it scored 57 out of 100 – a score of 0 meaning “highly corrupt” and a score of 100 meaning “very clean” (Transparency International, 2014c). Furthermore, Lithuania showed a stable decrease in corruption in a period of 2012-2013 (the change in Corruption Perception Index is shown in Appendix A). Foreign direct investment inflows have shrunk since 2008 – from EUR 1,342.4 million in 2008 to EUR 400 million in 2013 (Euromonitor International, 2014b). The political factors of Poland are as followed: The stable democracy in Poland, which was reached after the fall of communism, offers a politically reliable environment to businesses. The level of corruption in Poland’s political and bureaucratic system is an obstacle to foreign investment and businesses. According to Transparency International’s 2013 Corruption Perceptions Index, Poland ranked 38th out of 177 countries. More specifically it scored 60 out of 100 – a score of 0 meaning “highly corrupt” and a score of 100 meaning “very clean” (Transparency International, 2014a). There has been a stable decrease of corruption in Poland through years 2008-2013 (the change in Corruption Perception Index is shown in Appendix B). IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 16 Due to a formed monopoly of fuel supply in Warsaw airport, which resulted in low cost transparency of fuel facilities and services, the price of jet fuel in 2012 was amongst the highest in Europe (International Air Transport Association (IATA), 2012). According to Piotr Bogumil (2014), Poland mainly experiences foreign direct investment in manufacturing and business services. Compared to its peers in Central and Eastern Europe (CEE), Poland receives a higher share of foreign direct investment due to geographical proximity to the investors in Western Europe, a small growth of labor costs, a flexible labor market, and relatively satisfying quality of labor force (Bogumil, 2014). According to European Commission (2014), “since the start of 2012 emissions from all flights from, to and within the European Economic Area (EEA) - the 28 EU Member States, plus Iceland, Liechtenstein and Norway - are included in the EU Emission Trading System (EU ETS)”. Both, Lithuanian and Polish markets present a reliable democratic environment for business. On the other hand, high levels of corruption present certain obstacles in both, Lithuanian and Polish markets. As an example, corruption encourages unfair advantages or anti-competitive practices between businesses, which could, to a certain extent, result in one of the competitors overpowering “Baltic Ground Services”. A formed monopoly of fuel supply in Warsaw airport could be an example. It is also worth mentioning that foreign direct investment has an indirect effect on the overall labour market of the host country – through creating better-paid jobs than local businesses (The Organisation for Economic Co-operation and Development (OECD), 2008). Following an example of international firms, job conditions may be improved (e.g. higher wages) in local companies, as a consequence of the positive wage effect (OECD, 2008). This may negatively affect the company expenses, in case of a long-term increase of foreign direct investment in the country. Lastly, EU Emission IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 17 Trading System could be relatively harmful to “Baltic Ground Services”. As restrictions were implemented on the quantity of emissions produced from all flights in European Economic Area, it can be assumed that a part of airlines would control the number of their flights, or even reduce if needed. As “Baltic Ground Services” is a company, providing ground handling and fuelling services, it would be primarily affected by the change in the number of flights. Economic factors. The economic factors of macro environment define the market attractiveness, and the way in which a company operates and makes decision. The economic factors of Lithuanian market are presented below: The recovering labour market is stimulating the growth of domestic demand, as the wages increase (Lietuvos Bankas, 2014). Trade restrictions with Russia, implemented in August 2014, will negatively influence the growth of Lithuanian economy. It is expected that the growth of Lithuania’s real GDP will decrease by 0.4 per cent in 2014 (Lietuvos Bankas, 2014). The unemployment rate in Lithuania has almost doubled since 2008 – from 5.8 % of economically active population in 2008 to 11.8% in 2013. Though it is important to mention, that there has been a stable decrease in unemployment rate since 2010 (Euromonitor International, 2014a). The economic factors of Polish market are as followed: Poland revealed its resiliency in the financial crisis. It showed growth at an average rate of 3.38% in 2008-2009 (MarketLine, 2014). Poland showed economic growth at an average rate of 2.99% in a period of 2010-2013 (MarketLine, 2014). According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2013, Poland was positioned as a 14th transnational corporations’ top prospective host economy 2013-2015 (MarketLine, 2014). IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 18 Poland suffers from a relatively high unemployment rate – it reached 10.3% of economically active population in 2013, the highest unemployment rate in a period of 2008-2013 (Euromonitor International, 2014a). As Polish aviation sector is not as mature as in other markets of Western Europe, it has great potential to grow. In 2012, Poland reached a total of 0.6 air passenger per inhabitant, compared to France and Germany, 2.1 passenger per inhabitant and 2.2 pass./inhabitant, respectively (Eurostat, 2014). A relatively high unemployment rate has a negative effect on the economy of a certain region. In a long run, unemployment could lead to a slowdown in growth of the economy, which would affect each business, operating in a certain market. As Polish aviation sector is rather immature and growing, it presents an opportunity for BGS PL to gain a stronger position in this market. Social factors. The socio-cultural factors represent the culture of society the company is operating in. It gives a more detailed look toward essential demographic indicators. The social factors of Lithuania are indicated below: Population development is ranked by Human Development Index, which measures “a long and healthy life, access to knowledge and a decent standard of living”. Lithuania scored 0.810, which is classified as “very high”, and reached a 40th place out of 187 countries in 2011 (Transparency International, 2014d). Lithuanian population has had a steady literacy rate of 99.8% since 2008 (Euromonitor International, 2014c). As all developed countries, Lithuania faces a problem of an ageing population. The mean age of Lithuanian population was 41.0 years in 2013 (Euromonitor International, 2014d). IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 19 The social factors of Polish market are presented below: Poland scored 0.813 on Human Development Index, which is classified as “very high”, and reached a 39th place out of 187 countries in 2011 (Transparency International, 2014b). Poland’s population is highly educated. The literacy rate in the country was 99.8% of population aged 15 and higher in 2013 (Euromonitor International, 2014c). As most Western European countries, due to lowering birth rates and an ageing society, Poland also faces the demographic problems. It is expected that the population of working age (15-64 years old) will decline by 17.9% in a period of 2010-2060 (MarketLine, 2014). Polish society tends to show more ethnocentric tendencies among consumer preferences (Smyczek & Glowik, 2011). Both, Lithuania and Poland scored “very high” on Human Development Index, which shows a developed and healthy society. Further, both countries show great literacy rate. This entitles each business to more qualified workforce. On the other hand, qualified workforce may require a specific set of work conditions, which may lead to excess expenses for the company. It is worth mentioning that an ageing society may be a burden for “Baltic Ground Services” in a long run, as certain positions in the company are seasonal, and require younger staff (e.g. loaders, check-in agents). It is important to note that Polish consumers being more ethnocentric may prefer a local employer to an international company. Technological factors. The technological development of a country shows its position in global market, the advancement of society, governmental spending on research and development. One of the technological factors of Lithuanian market is as followed: IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 20 Lithuania has five Integrated Research, Studies and Business Centres, which focus on establishing and developing a new environment for cooperation of competitive sciences, high technology and business. So-called valleys are Santara, Sunrise, Santaka, Nemunas and Maritime Valleys. Lithuanian governmental investment in Research and Development (R&D) was only 0.9% of GDP in 2013, compared to European Union average of 2.1% (Euromonitor International, 2014e). The technological factors of Poland are presented below: As Poland has a well-developed Information and Communications Technology market, it is ranked 54th among 148 countries in the Networked Readiness Index 2014 (World Economic Forum, 2014). The Polish IT market is considered to be rapidly growing, compared to the region (MarketLine, 2014). Poland is ranked as a “Modest innovator”, as indicated in Innovation Union Scoreboard 2014 (MarketLine, 2014, p.36). Polish governmental investment in Research and Development (R&D) was only 0.9% of GDP in 2013, compared to European Union average of 2.1% (Euromonitor International, 2014e). Both, Lithuania and Poland present a suitable environment for innovation for “Baltic Ground Services” (e.g. in fields of IT, high technology). It is important to mention that, as BGS LT and BGS PL have financial support from their parental company ASG, investment in research and development (R&D) usually comes from within the company. Environmental factors. Aviation industry may be influenced by climate. The environmental factors of Lithuanian and Polish markets are presented below. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 21 The climate of Lithuania is referred to as mild, with relatively warm, wet summers and severe winters. Therefore, ground-handling agents have to be prepared for changing weather, and provide the needed equipment (e.g. snow confuses the processes of ground handling, thus all the vehicles have to be highly equipped to avoid accidents). The climate of Poland can be described as temperate, with cold, severe winters and mild summers with rains. Due to these factors, aircraft ground-handling companies have to be prepared for various elements of nature – the equipment has to be adapted to cold or humid weather (e.g. passenger stairs may have a heating system for colder time of a year, or they may be protected with a cover from rain). Both, BGS LT and BGS PL have to take extra precautions while maintaining the equipment needed for ground handling, fuelling, as climate conditions may cause accidents. Therefore, additional expenses are invested in the quality of the equipment, and the training of staff. Legal factors. The legal environment of a country defines how a company operates and its costs related to legal regulations. Legal environment of the Lithuanian market can be characterized as followed: In 1996, European Union passed a council directive indicating, that any groundhandling company, registered in EU, has the freedom to provide its services in any of the airports in EU (The Council of the European Union, 1996). This directive gives both, the freedom for the companies to expand internationally and a higher competition for local ground handling agents. Employee social security costs take up to 30.98% for an employer (Sodra, 2014). Polish market can be characterized by such legal factors: IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 22 In order to perform ground handling services and to operate in the airports of Poland, it is necessary to get permission, an issued licence, from the The Polish Civil Aviation Office (Urzędu Lotnictwa Cywilnego). As it was mentioned earlier in the paper, high corruption rates in Poland may slow some legal or administrative processes, including the issue of a new license. Employee social security costs take up to 42% for an employer (European Commission, 2013). High social security costs for an employer is a major disadvantage, when choosing a new market to enter. Though BGS LT is a well-established company in Lithuania, BGS PL is still trying to gain a stronger position in Polish market. High social security costs may lead to search of less qualified workforce, in order to decrease their costs. After completing the macro environment analysis of the markets, it is visible that all environmental factors may influence the companies, operating in Lithuania or entering Polish market. On the other hand, political and economic factors may be identified as the most important to the companies, and social factors – as highly significant elements of human resource management. Competitors. There is only one main competitor in Ground Handling segment in Lithuania – UAB Litcargus. It is a local Lithuanian company, founded in 1993, providing passenger and aircraft ground handling services. Initially, the company started its operations in Vilnius International Airport, and expanded to Kaunas International Airport in 2004. In 2011, UAB Litcargus decided to expand internationally, and chose Polish market, under the name “CEAS – Central European Airport Services. UAB Litcargus main objectives are: security, safety and professional, qualified staff (UAB Litcargus, 2014). Concerning human resource management, no official data was found, but comments in such portals, as http://www.skundailt.com/, give the impression of a company, which does not value its IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 23 employees. Most of the records indicate that wages do not correspond to the workload. Moreover, psychological pressure and stressful work environment are mentioned. There are few competitors working in Aircraft Ground Handling segment in Poland, both local and international. “LS Airport Services SA” is a government-owned company, which offers a wide range of ground handling services (passenger, private, business, military), except catering and fuelling, for more than 40 airlines, both passenger and cargo. “LS Airport Services SA” operates in four international airports of Poland - Warsaw, Krakow, Modlin and Gdansk (Ministry of Treasury of the Republic of Poland, 2014). “Welcome Airport Services” offers passenger and aircraft handling services for carriers and airports in the airports of Warsaw, Gdansk, Katowice, Krakow, Poznan, Szczecin and Rzeszow (WELCOME Airport Services Sp. z o.o., n.d.). It can be assumed that Polish consumers being more ethnocentric may prefer a national employer – a government-owned company (LS Airport Services SA) or a local business (Welcome Airport Services) – to an international company. According to the study by Smyczek and Glowik (2011), Polish consumer ethnocentrism has formed due to an unhealthy state of the economy (economic crisis), rather than emotional or moral beliefs. Therefore, it can be assumed that ethnocentrism encourages Polish to support local businesses, and as a consequence, preserve the local labor market (Smyczek & Glowik, 2011, p.112). “Swissport Poland” Sp. z o.o. belongs to an international company “Swissport Ground Handling” and an international corporation “Swissport International Ltd.”. The Polish subsidiary provides handling services – more specifically, Airport Ticketing Sales Desk, Station Representation and Supervision and Cargo reservation (Swissport International Ltd., n.d.). “Swissport Poland”, being a part of an international corporation presents a IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 24 different approach towards its employees and human resource management. As an example, one of the three core values of Swissport is people – “People make the difference in our business” (Swissport International Ltd, n.d.). It indicates that the company values its employees and have faith in their professionalism, as well as, dedication. Further, “Swissport International Ltd” being a multinational corporation, operating in 45 countries, is assumed to have very strongly developed human resource processes, implemented in all of the subsidiaries. Well-developed human resource management processes are an advantage to any employee, as an employee knows one’s goals and tasks, trusts in the performance evaluation process. Internal Situation Analysis of “Baltic Ground Services” UAB Baltic Ground Services human resource management. Currently, BGS LT has 260 employees, BGS PL – 100 employees, and Baltic Ground Services IT s.r.l. – 40 employees (Baltic Ground Services, n.d.a). The organizational structure of “Baltic Ground Services” subsidiaries is very similar to one of ASG, as companies of the group tend to undertake the same structural model – in this case, vertical organizational structure. The CEO of the company gives the general commands to the heads of each department, who later allocate the tasks to their subordinates. Organizational structure of UAB Baltic Ground Services. BGS LT divides their Ground Handling department into Passenger Services, Ramp Services, Fuel Supply, which are then distributed into even smaller so called Groups, responsible for each specific area (as shown in Appendix C). The Personnel and Administration department consists of three employees – head of Personnel Department, Office administrator and Personnel manager. This department is fully responsible for staff selection, recruitment processes, and introduction of new employees to the work and the company, employee performance monitoring, assessment of employee IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 25 satisfaction, training of employees, career planning, and motivation of employees. The Personnel Department has defined all of the needed human resource management processes and prepared the instructions for implementation of those processes – the further presented information about human resource management processes is drawn from the “Human Resource Management” protocol (“Personalo valdymas”) of BGS LT. The employees of Personnel Department are accountable for human resource management procedures. In case of the update of the procedures, an employee is responsible for cooperation with respective departments of the company. It is indicated that subsidiaries of BGS LT are entitled to adapt the defined human resource management procedures according to the peculiarities of their company and market. Human resource planning. The head of Personnel department is responsible for setting and planning the employee demand. The expansion of the company and business plans of existing clients (such as, planned seasonal flights) is the main indicators of employee demand. The head of each department assesses the possible workload, according to these indicators. Later, employee demand is discussed during strategic company meetings with the employees of Personnel department, and if the demand for new employees is confirmed – the head of each department submits the need in writing to the CEO. After the approval of CEO, the head of Personnel department organizes the recruitment process. Candidate selection process. When a vacant position appears in the company, firstly company employees are assessed as possible candidates. If any of the employees matches the requirements for the position, he or she is invited for an interview for the vacant position. In case of no possible candidates inside the company, the employees of Personnel department review the internal CV database, prepare a job ad, and spread it through different communication means (CV portals, magazines, recruitment agencies). After the CVs of possible candidates are received, they are assessed according to the job requirements; the best IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 26 are chosen and invited to an interview. The head of a respective department and the head of Personnel department, both attend an interview. BGS LT has a prepared form for assessment of candidate’s professional experience, abilities, features, etc. After consideration of all candidates’ suitability for the position – the head of a department and the head of Personnel department choose one candidate collegially. In case of a higher demand for employees, when 5 or more new employees are introduced to the company, short time frames are set. For example, planning and organization of new employee training, testing of their newly acquired skills, assessment of the results has to be executed in no longer than four weeks. Employee orientation and training. After a person is employed, the following procedures have to be executed: work contract has to be prepared and a probation period set; needed authorizations have to be granted; employee information has to be entered into internal employee database; an employee file has to be formed; a new employee has to be acquainted with all necessary job safety documents and instructions. As BGS LT is in the territory of Vilnius International Airport, a highly restricted area, an impeccable reputation check has to be performed on new employees, which is defined step by step in the instructions of human resource management processes. During the first steps of employee company orientation, he or she is acquainted with company mission, values and goals, organizational structure, services a company provides and its clients. The orientation process of new employees is usually held by the employees of Personnel department who give a brief introductory presentation about the company group ASG, the peculiarities of ground and passenger handling business, rules of the workplace. The prepared power point presentation is usually invoked. Further, the appointed employee of a respective department introduces a new hire to his job tasks and goals. As BGS LT is in a specific business field – ground-handling services – all employees have to be trained for general knowledge of the field, certain tasks, and situations. If an IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 27 employee is willing to raise his qualification, his knowledge, abilities and skills are tested according to “Employee Training Procedures”. The results of the tests are kept in an employee file, in order to track employee growth and development. Annual employee evaluation and career planning. Annual management and specialist evaluation procedure is also defined in the instructions. The annual evaluation takes place from 1st of February till 1st of April. Firstly, an assessed employee fills a prepared questionnaire – an individual evaluation of his work (results, goals met, difficulties, etc.). Secondly, the head of a department or a CEO supplements the same questionnaire, evaluating employee performance. Annual evaluation procedure is completed by annual interview, carried out by the head of Personnel department and the head of respective department. Main points covered are: professional achievement and growth of an employee, individual and department goals for an upcoming year, employee’s perception of the company and ways to improve, employee expectations. BGS LT uses a system of KPIs to set goals and assess employee performance annually. Such structured system helps both, to evaluate an employee and to notice the areas employee needs to improve. Therefore, it is easier for the company to suggest respective training for continuous employee growth. Possible training programs are either offered by the head of Personnel department or by employee initiative in a period of annual employee evaluation. The training procedure for an upcoming year is set after the final employee evaluation. As mentioned before, any vacant positions are firstly offered to company employees, in order to encourage them to pursue a career inside the company. Due to methodical collection of employee information (performance, trainings, expectations), it is easier for the head of Personnel department to find a suitable position for an employee. As mentioned by the head of Personnel Department of BGS LT, Laura Buitkuvienė, one of the company aims is to create favourable conditions for the emergence and IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 28 development of employee creativity and self-realization. One of the latest implementations to the workplace was a “suggestion board”, where any employee could offer an idea, related to one’s work or the well being of the company. This new tool may present employees with more freedom to express their ideas, and let them feel important to the organization. However, the head of Personnel department mentioned the lack of employee interest in this new opportunity. It is thought that employees may lack the enthusiasm to think of new ideas or to be the part of the change. Mission, vision and values. “Baltic Ground Services” company group, no matter where the subsidiary is, pursue a defined mission, vision and a set of values. “Baltic Ground Services” company group mission is to “provide reliable ground services for safe and timely air travel” (Baltic Ground Services, n.d.b). The vision is “to become one of the leading region‘s integrated ground handling providers, known for its quality, reliability and innovative solutions” (Baltic Ground Services, n.d.b). “Baltic Ground Services” follow a set of values: professionalism, cooperation, growth, and ownership (Baltic Ground Services, n.d.b). An employee is emphasized in the set of values: a successful and dynamic company can only be created through professionalism and competency of its employees, teamwork, trust and respect, and taking care of employees. BGS LT is creating a positive image of their company and internal work environment. In 2013, BGS LT and its staff won a contest “I love my company” (“Aš myliu savo įmonę”). The aim of the contest was to identify and reward the companies that are most loved by their staff. Furthermore, this contest fulfilled the need to inform the society of the companies, which take employee expectations into account, and have positive working environment. Baltic Ground Services Sp. z o.o. human resource management. As mentioned earlier, “Baltic Ground Services” pursue a certain set of values, which is passed on to other IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 29 subsidiaries. Human resource management processes are also implemented to other subsidiaries, following the well-established practice of BGS LT. Organizational structure of Baltic Ground Services Sp. z o.o. As mentioned before, BGS PL employs 100 people in total. Currently, the CEO manages all the administrative units and the COO is responsible for all the technical departments. All these departments are then divided into smaller divisions, responsible for specific areas (as shown in Appendix D). This organizational order shows great centralization of decisions and clear distribution of specific areas or tasks between employees. Human resource processes. As BGS PL follows the same instructions of human resource processes as BGS LT, the order of any procedures, concerning employees, are the same. It is worth mentioning, that the Polish subsidiary employs only eight administration employees. It should ease the human resource management decision problems, which tend to occur with higher number of administrative layers – or hierarchical order of decision processes. On the other hand, a more extensive workload per administration employee can occur. The head of Personnel department of BGS PL, Katarzyna Postek, shared that the turnover rate of employees reduced to 27% this year, compared to over 50% last year. In order to form a strong company and a pleasant work environment, problematic managers and employees have to be eliminated. Furthermore, winter season determines staff reduction – especially in the positions of loaders and check-in agents. Due to a higher number of season flights during summer, an additional workforce is required. Katarzyna Postek shared additional information, regarding employee evaluation. Besides the defined procedure of employee evaluation, which mainly takes the fulfilment of determined KPIs into account – employee commitment to the company and one’s work, as well as, personal growth are important for the evaluation process. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 30 The head of Polish Personnel department shared her personal impression of employee work engagement in BGS PL. In her opinion, the employee work engagement has increased since last year. The reasons stated are: elimination of weak, problematic employees and managers, and constant communication between management and employees. Mostly e-mails are used for the spread of information between the employees, but face-to-face meetings are considered more beneficial – the information moves faster, a more efficient approach can be used for problem solving, a stronger relationship forms between employees. Katarzyna Postek mentioned that BGS PL is planning on establishing a stronger position in Polish market, which may be a reason for even higher employee work engagement. Great effort has been put into the improvement of work environment and employee well being, therefore fully engaged employees is an aspiration. It is worth mentioning that both, BGS LT and BGS PL have implemented annual satisfaction survey. Though the heads of Personnel departments were unwilling to share any insights, the implementation of satisfaction surveys itself shows company effort to change for the better of their employees. The company is eager to exercise all means to create a successful company – reach great working environment and high levels of employee engagement. SWOT Analysis The aim of the SWOT analysis is to define the strengths, weaknesses, opportunities and threats of BGS LT and BGS PL. Separate SWOT analysis for both of the companies are presented in Tables 3 and 4. To start with strengths, well-defined and developed human resource management processes (as seen in Table 3 and 4) provide the companies with clear instructions of employee selection, orientation, evaluation and training; and create a mutual trust between employees and their employer. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 31 Table 3 SWOT analysis of BGS LT - - - Strengths Defined and developed human resource management processes; Perceived positive work environment; The main competitor – a poorly perceived company by former employees Investment and support from the parental company (opportunity for innovation) Opportunities Low competition in the field; Recovering labour market of Lithuania; The international expansion of the company - - - - - Weaknesses A constant turnover of employees in certain positions, due to the volatility of the ground handling business (seasonal flights); Narrower geographical airport coverage in Lithuania, compared to main competitor (a competitor may be viewed as a better employer) Employee engagement could be improved Threats The peculiarities of ground handling business field, which limit the range of suitable candidates; Low competitive differentiation between ground handling companies in Lithuania As BGS LT has only one main competitor, a poor reputation of the competitor as an employer benefits BGS LT. Low range of possible employees and low competitive differentiation between ground handling companies – through job peculiarities, skills needed, the pace of work – leaves little space for a company to stand out in the market. On the other hand, high investment opportunities from the parental company ASG may be a competitive advantage. As it was mentioned before in the paper, financial capabilities of the company define human resource management practices Therefore investment may lead to innovative, caring, positive work environment. As mentioned earlier in the text, BGS LT is planning an expansion to Russian market, by establishing a ground handling services base in Ramenskoye International. This may present employees with new international career opportunities. Despite, all the strengths and opportunities, the level of employee engagement could be improved. Information discussed in this section is based on Table 3. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 32 Table 4 SWOT analysis of BGS PL - Strengths Defined and developed human resource management processes A decreasing employee turnover Strong communication between employees and management Investment and support from the parental company BGS LT - - - - - Opportunities Wider international experience of the company (seen as an opportunity for employees; trust from employees) A potential to grow and develop in Polish market Economic growth of Poland - - Weaknesses A constant turnover of employees in certain positions, due to the volatility of the ground handling business (seasonal flights) Lack of geographical airport coverage of ground handling segment in Poland (competitors may be viewed as better employers) Employee engagement could be improved Threats Ethnocentrism of Polish nationals (Polish companies may be perceived as a better employer) Strong local and international competitors in ground handling segment To continue with Table 4, BGS PL showed a decreasing employee turnover, which signals a stabilizing work environment in the company. On the other hand, there is a constant level of turnover in particular positions, which require seasonal work. BGS PL is planning to expand and strengthen its position in Polish market, therefore it may encourage employees to perceive the company positively, as well as, attract new promising specialists. As “Baltic Ground Services” has international experience and is willing to expand in the future, it may be considered a promising employer, with international career opportunities. On the contrary, one of the highest threats of BGS PL is a very strong competition in Polish market. As a possible employee is entitled to choose from different governmental, national or international ground handling companies – the competition to attract specialists, to create a positive work environment, and to increase employee engagement is a rather hard task. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 33 Theoretical Foundation of the Problem After the examination of internal and external environments of BGS LT and BGS PL, theoretical research was conducted. Definition of employee engagement. Robinson et al. (2004) describes engagement as “a two-way relationship between the organization and employee” (as cited in Musgrove, Ellinger, A.E., & Ellinger, A.D., 2014, p. 158). In a general manner, engagement is related to employees’ attitudes, intentions and behaviors toward work through their emotional experiences and perceptions of their well being (May et al., 2004, as cited in Musgrove et al., 2014). According to Macey & Schneider (2008), employee engagement is a desirable concept, which “has an organizational purpose, and connotes involvement, commitment, passion, enthusiasm, focused effort, and energy, so it has both attitudinal and behavioral components” (p. 4). Though employee engagement is an important concept to any company, a lack of compatibility between the realized importance of engagement and the existing level of it in nowadays organizations is a prior concern (Shuck, Rocco, & Albornoz, 2011). Moreover, according to Atwater and Brett (2006) (as cited in Xu & Thomas, 2011), employee engagement contains such aspects, e.g. task and relationship, which can be positively managed and controlled by leaders. Therefore, it is crucial to analyze the concept of engagement, and its positive influence on employee and organizational outcomes. After a careful study of academic research, it can be noted that many authors tend to build their employee engagement models and ideas on the theory of Kahn (1990). Some claim that Kahn was one of the first to develop the concept of employee engagement on the basis of earlier works of Goffman (1961) (Slåtten & Mehmetoglu, 2011), Alderfer (1972), Maslow (1954) and others. Drawing from Alderfer (1972) and Maslow (1954) (as cited in Kahn, 1990), Kahn suggests that engagement defines employee need for “self-expression and self-employment in their work lives” (p. 694). Kahn (1990), referring to other researchers, IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 34 further explains self-employed employees as involved, connected, mindful, feeling, intrinsically motivated and investing effort into their work. Based on other researchers, Kahn (1990) suggests that self-expression stimulates employee “creativity (Perkins, 1981), the use of personal voice (Hirschman, 1970), emotional expression (Rafaeli & Sutton, 1987), authenticity (Baxter, 1982), nondefensive communication (Cibb, 1961), playfulness (Kahn, 1989), and ethical behavior (Toffler, 1986)” (p. 700). In his work, Kahn (1990) analyzes the level of psychological presence of employees in their work and organizational role. More precisely, employees invest different degrees of themselves, “physically, cognitively, and emotionally, in work role performances” (Kahn, 1990, p. 692). As further defined by human resource consulting firm Towers-Perrin (2003, as cited in Macey & Schneider, 2008), employee engagement indicates a voluntary effort, invested through time, mentality and energy. Effort is referred to as “giving it their all” (Bernthal, 2004, as cited in Macey & Schneider, 2008, p. 14), and is expressed through duration, intensity and direction (Macey & Schneider). Kahn (1990) defines engagement “as the harnessing of organization members' selves to their work roles” (p. 694). Macey and Schneider (2008) follow Kahn’s idea, and agree that engagement is self-involvement. Moreover, Macey and Schneider (2008) emphasize that engagement cannot be entirely explained by additional effort, which is doing more of the same. Therefore, engagement provides employees with possibility to behave differently from less engaged, not simply do more (Macey & Schneider, 2008). It is suggested that engaged employees are “attentive and absorbed in the performance of their roles” (Saks, 2006, p. 602), and exhibit an emotional attachment to their workplace (Kahn, 1990). The behaviors, promoted by expression and employment of employee’s “preferred self”, strengthens the connection between self and one’s role (Kahn, 1990). IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 35 Rich, Lepine and Crawford (2010) admit the uniqueness and importance of engagement as a motivational notion. Employee engagement is not an instant, concrete state, but rather a constant, continuing, “affective-motivational” state, which relates to different variables, and is expressed physically, cognitively and emotionally (Agarwal, 2014, p. 107). Ashforth and Humphrey (1995, as cited in Agarwal, 2014) give a more picturesque definition of engagement, as the investment of “hands, head, and heart” (p. 107). It is important to mention that specific, identifiable tasks and assignments, and organizational factors are recognized as continuous elements, which constantly influence the engagement (Macey & Schneider, 2008). Generally, engagement is a directly noticeable atypical behaviour in the concept of work (Macey & Schneider, 2008). There are other variations of the definition of employee engagement. Though the base of engagemet research is drawn from Kahn’s works, the concept may be rephrased. Engagement is also analyzed by burnout researchers, as a complete opposite or “positive antithesis” of burnout (Maslach et al., 2001, as cited in Saks, 2006, p. 601). Therefore, as indicated by González-Romá et al. (2006), the core aspects of engagement (“vigor and dedication”) are complete opposites of burnout (“exhaustion and cynicism”) (as cited in Saks, 2006, p. 601). Furthermore, according to Maslach and Leiter (1997) low levels of exhaustion and cynicism, and high efficacy are the indicators of engagement (as cited in Schaufeli et al., 2002). Zigarmi et al. (2009) reaffirm this statement by defining engagement as an “energetic state of involvement with personally fulfilling activities to enhance one’s sense of professional efficacy” (as cited in Musgrove et al., 2014, p. 154). The concept of characterizing engagement by vigor, dedication, and absorption, comes from the study of Schaufeli et al. (2002). This paper will concentrate on and study Schaufeli’s et al. (2002) approach to employee engagement “as a positive, fulfilling, workrelated state of mind” (p. 74). Similarly to Schaufeli et al. (2002), Slåtten and Mehmetoglu IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 36 (2011) claim that engagement provides high levels of energy and enthusiasm to employees in their job, which translates as a positive state of mind characterized by vigor, dedication, and absorption. According to Menguc et al. (2012), engaged employees tend to experience “happiness, excitement and the sheer joy” through their work (as cited in Musgrove et al., 2014, p. 153). In their study, Slåtten and Mehmetoglu (2011) also indicated that engaged employees tend to experience affirmative emotions, such as joy. As specified earlier, Kahn (1990) suggests that engaged employees tend to attach and get involved into their work. Schaufeli et al. (2002) support this idea by adding that engagement gives employees energy and effectiveness in their work. As mentioned before, Agarwal (2014) also supports Schaufeli’s et al. (2002), idea that engagement is “a more persistent and pervasive affectivecognitive state that is not focused on any particular object, event, individual, or behavior” (p.74). According to Schaufeli and Bakker (2010), both, researchers that follow Kahn’s approach to employee work engagement and those, who study the concept of burnout, agree that employee work engagement implies “a behavioural-energetic (vigor), an emotional (dedication), and a cognitive (absorption) component” (p. 13). Shuck et al. (2011) analyse employee engagement in a different light – through selfactualization. With reference to Kahn, 1990, employee engagement is paralleled to selfactualization through basic human needs of internal satisfaction and self-fulfilment (Shuck et al., 2011). As noted by Maslow (1998, as cited in Shuck et al., 2011), employees strive to reach the limit of their capabilities. Through exploitation of their full potential, employees come to identify themselves with their work (Shuck et al., 2011). Harter, Schmidt & Hayes (2002) defines employee engagement as “individual’s involvement and satisfaction with as well as enthusiasm for work” (p. 269). Although it is important to note that in academic research, employee engagement has been pictured as a IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 37 “distinct and unique” concept, and is distinguishable from job satisfaction and involvement, organizational commitment, organizational citizenship behaviour (Saks, 2006, p. 602). Some researchers use organizational commitment in defining employee engagament: “to be engaged is to be actively commited” (Wellins & Concelman, 2005, as cited in Macey & Schneider, 2008, p. 8). But as elaborated by Saks (2006), organizational commitment reflects employees` “attitude and attachment towards their organization” (p. 602). On a contrary, engagement is not defined as an attitude towards organization, but rather “the degree to which an individual is attentive and absorbed in the performance of their roles” (Saks, 2006, p. 602). Though Harter et al. (2002) connected engagement to satisfaction and involvement, May et al. (2004, as cited in Saks, 2006) claims that job involvement is related to employee self-image, and is influenced by cognitive judgment of job’s ability to satisfy needs. To the contrary, engagement is seen through employee self-employment and performance of their role (Saks, 2006). Further, Macey and Schneider (2008) expressed engagement through intention to put effort in achievement of the task related goals. Saks (2006) also noted that engagement is additionally expressed physically and emotionally, besides cognitively. To summarize, job involvement may be seen as an aspect of engagement, but in no way the same construct (Salanova et al., 2005, as cited in Macey & Schneider, 2008). To continue, the similarity of two concepts, satisfaction and engagement, is partly due to the resemblance of items measured in the surveys of each concept (Macey & Schneider, 2008). As an example, Harter et al. (2002) used a measure, called GWA (The Gallup Work Place Audit), which they reffered to as a measure of both, satisfaction and engagement. On the other hand, it is important to note that engagement implies activation, while satisfaction implies satiation (Macey & Schneider, 2008). According to Erickson (2005, as cited in Macey IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 38 & Schneider, 2008), engagement is more than simply satisfaction with work arrangement – it defines employee’s wish to commit and invest effort, in order for organization to succeed. Saks (2006) argues that organizational citizenship behavior is rather concerned with “voluntary and informal behaviors”, while engagement concentrates on the performance of employee’s formal role (p. 602). To conclude, Rich et al. (2010) argue that engagement is a full investment of employee’s self in their job, while other similar aspects, such as job involvement, satisfaction, “reflect narrower aspects of the individual’s self” (p. 617). Characterization of employee engagement. Academics have defined employee engagement as a distinct and unique construct, which is composed of cognitive, emotional and behavioral aspects, reflecting employee performance of their role (Saks, 2006). This approach can be explained through social exchange theory (SET) – “obligations are generated through a series of interactions between parties who are in a state of reciprocal interdependence”, and commitment between them evolves as parties comply with particular “rules of exchange” (Saks, 2006, p. 603). Cropanzano and Mitchell (2005, as cited in Saks, 2006) explain rules of exchange as a concept by which employees receiving economic and socio-emotional assets from their work environment, feel obligated to pay the organization back. Investment of different degrees of physical, cognitive, and emotional energy into one’s role is a fundamental repay for the resources an organization provides (Saks, 2006). Commonness of the investment of these energies reflects employee engagement (Rich et al., 2010). Kahn (1990) found that there are certain concepts, which reflect employee engagement in their role – meaningfulness, safety, and availability. By that, Kahn (1990) suggested that employees tend to engage more when experiencing psychological meaningfulness, psychological safety and psychological availability in their work. Each IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 39 employee makes an unconscious decision whether to engage or not by asking themselves “(1) How meaningful is it for me to bring myself into this performance? (2) How safe is it to do so? and (3) How available am I to do so?” (Kahn, 1990, p. 703). Saks (2006) agreed with the concept of these three conditions in order for engagement to occur. Similarly as Saks (2006) explains the social exchange theory (SET), Kahn (1990) elaborates that employees, while applying for a certain job, consent to the contracts, which promise desired benefits and guaranties in exchange for the fulfillment of particular obligations and investment of personal resources. Earlier mentioned three concepts of engagement can be rephrased – meaningfulness as perceived benefits, guaranties as safety, and perceived personal resources as availability (Kahn, 1990). Following Kahn’s (1990) definition of engagement, Rothbard (2001, as cited in Saks & Gruman, 2011) suggested that engagement is composed of two aspects – attention, and absorption. Attention expresses cognitive availability and the time spent thinking about one’s role, while absorption implies involvement and the level of focus on one’s role (Rothbard, 2001, as cited in Saks & Gruman, 2011). Rothbard (2001, as cited in Macey & Schneider, 2008) transformed these two concepts into measurement tools: attention as e.g. “I focus a great deal of attention on my work”, and absorption – e.g. “When I am working, I often lose track of time” (p. 13). This concept is somewhat similar to Schaufeli’s et al. (2002) view of characterizing employee engagement. Schaufeli et al. (2002), as mentioned before, define engagement “as a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption” (p. 74). This is drawn from burnout study of Maslach and Leiter (1997, as cited in Schaufeli et al., 2002), who describe engagement by “energy, involvement, and efficacy” (p. 73). In general, characterizing engagement, vigor refers to high activation, and dedication – to high identification with one’s work (Schaufeli et al., 2002). In more detail, vigor is IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 40 defined as “high levels of energy and mental resilience while working, the willingness to invest effort in one’s work, and persistence even in the face of difficulties” (Schaufeli et al., 2002, p. 74). Dedication portrays “sense of significance, enthusiasm, inspiration, pride, and challenge” (Schaufeli et al., 2002, p. 74). Schaufeli et al. (2002) chose to use the term dedication instead of involvement, as dedication has a higher level and a wider scope of identification with one’s work – it includes cognitive, emotional, and physical aspects of involvement. Lastly, absorption is defined as “being fully concentrated and deeply engrossed in one’s work” (Schaufeli et al., 2002, p. 75). Agarwal (2014) analyzes engagement in terms of innovative behavior – employee’s investment of oneself to innovation through creation of something new and different. Agarwal (2014) explains the importance of employee engagement to achieve innovation, with reference to Schaufeli’s et al. (2002) characterization of engagement: absorption as concentration to one’s work, vigor as mental resilience to avoid distraction and detachment from work, and dedication as employment of the enjoyment toward one’s job. Though each characterization of employee engagement is in one or other way referred to Kahn’s (1990) views, Schaufeli’s et al. (2002) approach – employee engagement characterized in vigor, dedication, and absorption – will be analyzed later in this paper. Antecedents of employee engagement. There are different antecedents, which influence employee engagement. Kahn (1990), as mentioned before, found that conditions under which employees experience engagement are meaningfulness, safety, and availability. To elaborate more, various work aspects stimulate psychological meaningfulness, which can be viewed as a return on employee’s investment of cognitive, emotional, and physical energy to one’s role (Kahn, 1990). In other words, it could be explained as a feeling of worth, usefulness, and value from a perspective of employee. Soane et al. (2013) agreed on the influence of meaningfulness on the level of engagement. Psychological safety is experienced IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 41 in a nonthreatening and predictable social environment, which is based on trust that engagement will not lead to negative consequences (Kahn, 1990, p. 703). Psychological availability is linked to cognitive, emotional or physical resources engaged in performance of the role (Kahn, 1990). Harter et al. (2002), referring to Kahn (1990), elaborate that engagement occurs when employees are aware of the expectations toward them, have the resources to perform, have autonomy in their roles, experience trust on interpersonal levels, and have opportunities for development. Moreover, Schaufeli (2008, as cited in Slåtten & Mehmetoglu, 2011) found a positive connection between autonomy and engagement. Xu and Thomas (2011) elaborate that typically academics tend to analyze two concepts, which define antecedents, influencing engagement: (1) earlier mentioned Kahn’s (1990) view of meaningfulness, safety, and availability, as core elements determining employee’s engagement; (2) job demands-resources model, which suggests that available job resources lead to employee engagement (Bakker & Demerouti, 2007). Job security, interpersonal aspects (e.g. supervisor support), role and task characteristics (e.g. role conflict, autonomy) are so called job resources, which influence the level of employee engagement in one’s work (Xu & Thomas, 2011). Hackman and Oldham (1980), as well as Alderfer (1985), elaborated alike: psychological experience of work, or more precisely, interpersonal and organizational factors are the antecedents of employee engagement (as cited in Kahn, 1990). Saks (2006) discovered that there are various antecedents, which influence employee engagement. As an example, perceived organizational support (POS), perceived supervisor support (PSS), rewards and recognition, and job characteristics are strong predictors of engagement (Saks, 2006). Saks (2006), refering to Hackman and Oldham’s (1980) job characteristics model, argued that five core job characteristics – “skill variety, task identity, IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 42 task significance, autonomy, and feedback” – affect psychological meaningfulness (p. 604). Refering back to Kahn (1990), psychological meaningfulness is a condition under which employees engage in their work roles. Slåtten and Mehmetoglu (2011) argued that the mentioned core job characteristics are related to job resources. Bakker and Demerouti (2007) elaborate that job resources may be experienced in different levels – organizational (“pay, career, opportunities, job security”), interpersonal (“supervisor and co-worker support), role (“role clarity, participation in decision making”), and task, which is represented by five core job characteristics (p. 312). Bakker and Demerouti (2007) claim, that the existence of job resources is a cause of higher levels of engagement. Macey and Schneider (2008) similarly proposed that job characteristics and leadership are the main antecedents of employee engagement. Hakanen et al. (2008, as cited in Petrou, Demerouti, Peeters, Schaufeli, & Hetland, 2012) suggested that proactive employees encounter motivating challenges and participate in problem solving, which positively affects employee engagement. Further, Petrou et al. (2012) elaborated that change, if viewed as a motivating challenge, may influence higher levels of engagement. Saks (2006), referring to social exchange theory (SET), suggests that employees experience higher levels of engagement, as they feel obligated to respond that way, in a consequence of a challenging job. Returning to the antecedents of engagement that Saks (2006) noted in his study – perceived organizational support (POS) and perceived supervisor support (PSS) are strong predictors of employee engagement. These concepts can be linked to Kahn (1990): psychological safety can be positively influenced by support and trust, perceived by employees from their organization and management. Generally, Rhoades and Eisenberger (2002, as cited in Saks, 2006) defines perceived organizational support (POS) as employee’s IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 43 perception of organization as the one that values their commitment and considers their wellbeing. Referring to social exchange theory (SET), Saks (2006) argues that employees are willing to engage in their job and help organization achieve its goals out of the feeling of obligation, resulted by perceived organizational support (POS). As suggested by Rhoades and Eisenberger (2002, as cited in Saks, 2006), employees may view perceived supervisor support (PSS) as a direct indicator of organizational support, and therefore, an important antecedent of engagement. Harter et al. (2002), referring to the study of The Gallup Work Place Audit, claim the positive influence of supervisor or manager support toward the level of employee engagement. It is considered that high work engagement is enabled by high-quality, trustworthy relations between supervisors and their subordinates (Bakker & Demerouti, 2007). Petrou et al. (2012) further considers that earlier mentioned job resources, such as feedback and support from both, organization and supervisor, may play a more important part in employee engagement than a challenging job. Van Schalkwyk, du Toit, Bothma, & Rothmann (2010) stress the importance of empowering leadership to employee engagement. Referring to May et al. (2004, as cited in van Schalkwyk, 2010), supervisor’s trust and support will enable psychological safety, and therefore, increase employee engagement. Further, empowering leadership preserve high levels of cognitive, emotional, and physical energy of employees (van Schalkwyk, 2010). Similarly, Schaufeli et al. (2002) consider supervisor support as a predictor of employee willingness to put effort into one’s work, and their persistence in case of challenges. Further, empowerment, defined as an “experience of authority and responsibility” (Mathieu, Gilson, & Ruddy, 2006, as cited in Macey & Schneider, 2008, p. 10) may be viewed as an antecedent of employee engagement. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 44 Saks (2006) also suggested that rewards and recognition is an important antecedent of employee engagement. Psychological meaningfulness can be achieved through this concept, as a return on employee’s investment of cognitive, emotional, and physical energy to their work (Saks, 2006). Returning to the construct of social exchange theory (SET), employees will be obligated to engage in their role performance, as a consequence of receiving rewards and recognition from their organization (Saks, 2006). Drawing from the analysis of the antecedents of employee engagement, job characteristics, perceived organizational and supervisor support, and rewards and recognition could be considered relatively significant, and will be examined later in this paper. Outcomes of employee engagement. It is believed that employee engagement is related to positive organizational outcomes, such as performance and productivity, and is perceived as a competitive advantage (Shuck et al., 2011). Further, employee engagement is expected to predict financial performance of an organization (Saks, 2006). Harter et al. (2002) studied employee engagement in 7,939 business units, in 36 companies, and as a result, correlation between engagement and such organizational aspects, as loyalty, profitability, productivity, profit, and employee turnover was found. Xu and Thomas (2011), drawing from different academics and other researches, claimed that stronger employee engagement contributes to “increased return on assets, higher earning per employee, higher performance, greater sales growth, and lower absenteeism” (p. 400). Kahn (1990), drawing from his research, suggests that organizational objectives are achieved through investment of cognitive energy, which encourages attentive behaviours. Ashforth and Humphrey (1995, as cited in Rich, et al., 2010) elaborate that investment of emotional energy contributes to overall organizational goals and performance, as social relations are tightened within organization. Further, the investment of physical energy into one’s role is likely to result in perceived positive impression by co-workers or a supervisor IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 45 (Rich et al., 2010). Kahn (1992, as cited in Saks, 2006) argued that employee engagement results in both, personal and organizational outcomes. More elaborately, examples of individual outcomes could be: improved quality of employee role performance or dedication to extra-role behaviour, and organizational outcomes include: increased organizational growth and productivity (Kahn, 1992, as cited in Saks, 2006). Moreover, employee engagement positively influences the commitment to one’s organization, and negatively influences employee turnover or intention to quit (Albrecht & Andreetta, 2011). This can be associated with increased energy level, perceived significance of one’s work, and joyful involvement in one’s role, when engaged (Schaufeli et al., 2002). Furthermore, work engagement, as suggested by Van den Heuvel et al. (2010, as cited in Petrou et al., 2012), is related to a more successful adjustment to change. Slåtten and Mehmetoglu (2011) found a connection between employee engagement and innovative behavior, as engaged employees tend to experience positive emotional state in their work, which results in creativity, labeled innovative behavior. Theoretical model of employee engagement. Drawing from the analysis of employee engagement in academic literature, it can be concluded that there are various models of understanding engagement, influenced by Kahn’s (1990) theory. Schaufeli et al. (2002) elaborates in detail on the concept of employee engagement, suggesting a definition: engagement is “a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption” (p. 74). Though there might be many conditions under which engagement may increase, core job characteristics, perceived organizational support (POS), perceived supervisor support (PSS), and the organizational system of rewards and recognition could be defined as significant antecedents of employee engagement. To conclude, various positive outcomes of employee engagement, all fall under the concepts of individual or 46 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT organizational outcomes. The antecedents, influencing employee work engagement, and the outcomes, resulted by employee engagement are presented in Figure 1. ANTECEDENTS • Job Characteristics • Skill variety • Task identity • Task significance • Autonomy • Feedback • Perceived organizational support (POS) OUTCOMES • Improved job performance EMPLOYEE WORK ENGAGEMENT • Vigor • Dedication • Absorption • Perceived supervisor support (PSS) • Increased financial performance of organization • Organizational commitment • Lower turnover • Innovative behavior • Rewards & Recognition Figure 1. Theoretical model of employee work engagement, antecedents and outcomes included. Sources: “Antecedents and consequences of employee engagement”, by A.M. Saks, 2006, Journal of Managerial Psychology, 21(7), 600-619; “The measurement of engagement and burnout: A two sample confirmatory factor analytic approach” by W. B. Schaufeli et al., 2002, Journal of Happiness Studies, 3, 71-92; “The influence of empowering leadership, empowerment and engagement on affective commitment and turnover intentions in community health service workers” by S. L. Albrecht & M. Andreetta, 2011, Leadership in Health Services, 24(3), 228-237; “How can leaders achieve high employee engagement” by J. Xu & H. C. Thomas, 2011, Leadership & Organization Development Journal, 32(4), 399416; “Antecedents and effects of engaged frontline employees” by T. Slåtten & M. Mehmetoglu, 2011, Managing Service Quality: An International Journal, 21(1), 88-107. Empirical Research Aim and Objectives Aim of the empirical research is to test the influence of different antecedents on employee work engagement, and to analyze current level of employee work engagement in IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 47 UAB Baltic Ground Services (abbreviated BGS LT) and Baltic Ground Services Sp. z o.o. (abbreviated BGS PL). Objectives of the empirical research are the following: 1. To evaluate the level of employee work engagement in BGS LT and BGS PL. 2. To evaluate the level of antecedents – job characteristics, perceived organizational support (POS), perceived supervisor support (PSS), rewards and recognition – perceived by the respondents. 3. To test the relation between the antecedents and the employee work engagement, as well as, its dimensions – vigor, dedication, and absorption. 4. To test the influence of antecedents on employee work engagement. In order to reach the aim and to accomplish the objectives of the empirical research, the theoretical model of employee work engagement was referred to, showing the antecedents, influencing the employee engagement (as seen in Figure 2). ANTECEDENTS • Job Characteristics • Skill variety • Task identity • Task significance • Autonomy • Feedback • Perceived organizational support (POS) EMPLOYEE WORK ENGAGEMENT • Vigor • Dedication • Absorption • Perceived supervisor support (PSS) • Rewards & Recognition Figure 2. Theoretical model of employee work engagement, antecedents included. Sources: “Antecedents and consequences of employee engagement”, by A.M. Saks, 2006, Journal of Managerial Psychology, 21(7), 600-619; “The measurement of engagement and burnout: A two sample confirmatory factor analytic approach” by W. B. Schaufeli et al., 2002, Journal of Happiness Studies, 3, 71-92 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 48 Only the antecedents of employee work engagement were included in the research model, as at this stage, it is important to define the factors influencing the level of engagement in BGS LT and BGS PL. Numerous positive outcomes of high level of engagement are visible from the academic research conducted. In this paper, it is important to find the measures for improvement of the level of engagement. Several hypotheses were drawn from the theoretical model, referring to the relation between the assumed antecedents and employee work engagement. H1. Job characteristics are positively related to employee work engagement. H1A. Job characteristics are positively related to vigor. H1B. Job characteristics are positively related to dedication. H1C. Job characteristics are positively related to absorption. H2. Perceived organizational support is positively related to employee work engagement. H2A. Perceived organizational support is positively related to vigor. H2B. Perceived organizational support is positively related to dedication. H2C. Perceived organizational support is positively related to absorption. H3. Perceived supervisor support is positively related to employee work engagement. H3A. Perceived supervisor support is positively related to vigor. H3B. Perceived supervisor support is positively related to dedication. H3C. Perceived supervisor support is positively related to absorption. H4. Rewards and recognition are positively related to employee work engagement. H4A. Rewards and recognition are positively related to vigor. H4B. Rewards and recognition are positively related to dedication. H4C. Rewards and recognition are positively related to absorption. Research Method and Data Collection Method IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 49 The hypotheses were developed before the research was conducted. Firstly, the primary data was collected for the empirical research, in order to gather the respective data, necessary to confirm or reject the hypotheses. One of the reasons for this choice was that BGS LT and BGS PL did not have any record of a research of employee work engagement. Also it was important to gather the primary opinions and perceptions about the work of administration employees and their organization. Further, the quantitative research method was chosen, in order to gather the precise data and to test several antecedents, as well as, the level of employee engagement of both of the subsidiaries efficiently – in small time frame and in precise detail. Furthermore, as the hypotheses were formulated before the data was collected, it was crucial to receive specific responses, which would confirm or deny the hypotheses. The data gathered is numerical and quantitative, which makes it easier to process. Also, there is less possibility of subjective analysis or interpretation of data by the researcher, as the statistical software is used for the tests. Lastly, besides the long negotiations with the heads of Personnel departments, personal approach (e.g. face-to-face interviews with company employees) could not be considered as an option. Further, the head of Lithuanian Personnel department suggested that the quantitative research, or more precisely, a questionnaire would be more suitable for their company. Therefore, a form of online questionnaire was chosen for the empirical research after a careful examination of academic papers, and possible resources. Furthermore, online survey presents a high level of confidentiality and anonymity, which could not be reached in case of conducting research through the head of Personnel department, or face-to-face interviews. Considering the peculiarities of the sample of the empirical research – small volume of company administration employees – it was important to keep the anonymity as high as possible, in order to receive objective responses. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 50 The data of the empirical research was collected through an online survey, using a survey tool www.manoapklausa.lt (login information: e-mail: [email protected]; password: q5D84TVO). This particular survey tool was chosen because of a wide range of free services, such as appropriate amount of questions in the survey. The heads of Personnel departments, both of BGS LT and BGS PL, received an e-mail on 7th November, with all the required information (such as, the duration of the survey, the confidentiality and anonymity, the purpose of the survey), and a link to the survey. The author was no longer working in the company, when the empirical research took place, therefore the e-mail was sent from a personal mailbox. Further, the heads of Personnel departments forwarded the e-mail to administration employees of both subsidiaries. The survey was available for more than one week – from 7th November to 16th November. Repetitive reminder e-mail with the survey link was sent twice to the heads of Personnel departments, and then forwarded to the administration employees – on 11th November and 14th November. As the survey was conducted online, the administration employees only had to complete it. Printed questionnaires have not been distributed, as administration employees are provided with the equipment (mobile phones, personal notebooks), which they may use to access their work e-mail from both office and home. Research Sample The whole population was treated as the sample of the empirical research – 36 administration employees of BGS LT, and 8 administration employees of BGS PL – 44 administration employees in total. The administration employees were specifically chosen, because of a strict policy of the company. Furthermore, the head of Personnel department of BGS LT strongly requested only the administration employees to be questioned, as an annual satisfaction survey would have been distributed to all company employees in a month. The head of Personnel department feared the confusion and denial to participate in satisfaction IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 51 survey between the employees. As it was mentioned before in the paper, both subsidiaries have a very strict protocol of how human resource management processes are handled. According to the opinion of the head of Lithuanian Personnel department, the established order may have been confused by additional survey presented. After long negotiations with the heads of Personnel departments, the conjoint decision was reached to choose administration employees of both, BGS LT and BGS PL for the empirical research. In the end, 33 administration employees of BGS LT, and 7 employees of BGS PL have completed the online survey – 40 employees in total, which represents the response rate of 91 percent. Though it is clear that a sample of 40 may be an obstacle while performing a quantitate research, it is a relatively common practice in the published papers in social sciences field. According to De Beuckelaer and Wagner (2012), in the period 1998-2007, 18 studies with the sample size below 50, were published in three journals – Transportation Journal (TJ), Journal of Business Logistics (JBL), and International Journal of Physical Distribution and Logistics Management (IJPDLM). It can be concluded, that almost 8 percent of 229 studies, researched in De Beuckelaer’s and Wagner’s paper, contained a small sample (De Beuckelaer & Wagner, 2012). Further, De Beuckelaer & Wagner (2012) presented that 5 percent, out of 879 papers, published in Journal of Operations Management (JOM) and Academy of Management Journal (AMJ), analysed small samples. It is important to mention that this study only focuses on two academic areas, supply-chain and management, and considers only five journals – by which an assumption can be made that small sample studies are relatively spread between the researchers. Moreover, one of the main factors is that sample has to appropriately represent the population to which the research findings are generalized (Coley & Lohnes, 1971, Miller & Kunce, 1973, as cited in U.S. Department of Education, 1995, p. 34) As suggested by Speed (1994), “the quality of the sample depends on IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 52 the relationship between sample and population” (p. 91). Therefore, consdering the small size of the population itself (44 administration employees in total), and the response rate of 91 percent (40 out of 44 responses were gathered), it can be concluded that the sample is representative of the population. Furthermore, “Bock and Sergeant (2002) defined a small sample study as a study in which less than 30 observations are collected in every population of interest” (as cited in De Beuckelaer & Wagner, 2012, p. 617). Hair, Balck, Babin and Anderson (2010) agreed with characterizing small sample as having less than 30 observations. It is important to mention that due to the relatively small sample of the empirical research, the comparison of BGS LT and BGS PL would be too complicated to perform. Furthermore, it can be assumed that a difference between sample sizes of both subsidiaries – 7 in BGS PL and 33 in BGS LT – would complicate the analysis, and the statistically significant findings would be less probable. Therefore, the statistical description of gathered data will be performed for both of the subsidiaries, without comparing the two. Research Instrument One online questionnaire, consisting of 17 questions, was prepared in English language for both, BGS LT and BGS PL (the questionnaire is presented in Appendix E). As the administration employees tend to use English language quite often in their job tasks, because of the aviation industry peculiarities and the managerial nature of their jobs, thus no misunderstandings should have occurred during the completion of the survey. According to the drawn theoretical model of employee work engagement, there are several antecedents, which are claimed to have influence on the level of engagement. The antecedents are: 1) job characteristics (skill variety, task identity, task significance, autonomy, and feedback) (Saks, 2006); 2) perceived organizational support (POS); 3) perceived 53 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT supervisor support (PSS); 4) rewards and recognition. Each of these antecedents were tested with specifically selected questions, adapted for this study. Table 5 Structure of the questionnaire Aim of analysis Socio-demographic characteristics Level of antecedents of employee work engagement, perceived by the respondents Factor or scale Subsidiary by country; age; position; incumbency 1-4 Autonomy 5 Task identity 6 Job Skill variety characteristics 7 Task significance 8 Feedback 9 Perceived organizational support (POS) 10-12 Perceived supervisor support (PSS) 13-15 Rewards and recognition 16 Vigor Level of employee work engagement Question No. Utrecht Work Engagement Scale (UWES-9) Dedication Absorption 17 VI1, VI2, VI3 17 DE1, DE2, DE3 17 AB1, AB2, AB3 Source Created by the author Hackman and Oldham (1980); Modified by Saks (2006); Adapted by the author Rhodes et al. (2001); Modified by Saks (2006); Adapted by the author Rhodes et al. (2001); Adapted by Saks (2006); Adapted by the author Saks (2006); Adapted by the author Schaufeli & Bakker (2002); Adapted by the author IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 54 The basis for the questions were academic papers, which analyzed the relationship between antecedents and employee work engagement, and the level of engagement (as seen in Table 5). The questionnaire was devided into three main parts – socio-demographic questions, scales testing the perceived level of the antecedents of employee work engagement by the respondents, and the level of employee work engagement (as seen in Table 5). Job characteristics. For the measurement of job characteristics a five item model of Hackman and Oldham (1980, as cited in Saks 2006) was chosen and adapted for this study. Each item represented one of job characteristics – autonomy, task identity, skill variety, task significance and feedback. Respondents specified the amount or the extent to which each job characteristic is present in their job. Seven-point Likert-type scale was used for the indication, offering options, ranging from 1) very little to 7) very much. Perceived organizational support. For the measurement of perceived organizational support a short version of eight-item survey of perceived organizational support (SPOS) was chosen (Rhoades et al., 2001, as cited in Saks, 2006). Respondents indicated their extent of agreement, using a seven point Likert-type scale, ranging from 1) strongly disagree to 7) strongly agree. An item, representing perceived organizational support, in example, is “My organization really cares about my well-being”. Perceived supervisor support. Perceived supervisor support was measured using a shortened and adapted version of the survey of perceived organizational support (SPOS), on the basis of the empirical research of Saks (2006). A seven point Likert-type scale was chosen, representing 1) strongly disagree, on one side, and 7) strongly agree, on the other. An example of an item, measuring perceived supervisor support, is “My supervisor cares about my opinions”. Rewards and recognition. For the measurement of rewards and recognition, a sevenitem scale was used, adapted for this study on the basis of the empirical research of Saks IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 55 (2006). Respondents had to choose in what frequency certain factors of rewards or recognition were present in their job, in case of good work results. A seven point Likert-type scale was used, ranging from 1) very rarely to 2) very often. Examples of an item, measuring rewards and recognition – “A pay raise”, “Praise from your supervisor”, “Training and development opportunities”. Employee work engagement. As mentioned before, employee work engagement is “a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication and absorption” (Schaufeli et al., 2002, p. 74). In order to measure the employee work engagement, Utrecht Work Engagement Scale was chosen, consisting of nine items (UWES9). It is a shortened version of 17-item Utrecht Work Engagement Scale. Either scale measures three dimensions, or sub-dimensions, of work engagement – vigor, dedication, and absorption (de Bruin, Henn, 2013). In UWES-9, dimensions are measured using three specific items each: such as “At my work, I feel bursting with energy” for vigor; “I am enthusiastic about my job” for dedication; “I feel happy when I am working intensely” for absorption. A seven point Likert-type scale was chosen with anchors 1) never and 7) every day. In academic papers, employee work engagement is either treated as a one-factor aspect, or a three-factor aspect (divided into independent, yet correlated dimensions – vigor, dedication, absorption). According to Schaufeli and Bakker (2004), there is claim that both treatments are acceptable, when using UWES-9, though their empirical research showed that a three-factor solution is of better use than one-factor solution. On the other hand, de Bruin and Henn (2013) claimed that their empirical research supports Balducci et al.’s (2010, as cited in de Bruin & Henn, 2013) suggestion to measure the total score of employee work engagement for UWES-9. Therefore, both, one-factor and three-factor solutions were analyzed in this empirical research. 56 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT It is important to mention that all of the questions-items, referring to the employee work engagement and the presumed antecedents were adapted from validated academic works. The socio-demographic questions were created by the author. Data Analysis Methods After the survey data was gathered, SPSS (Statistical Package for Social Science) statistical software program, version 20.0, was used to analyze the survey outcomes in detail. Firstly, it is important to understand the reliability of the survey. As mentioned before, each variable (independent or dependent) – the assumed antecedents of employee work engagement, and the engagement – consists of several questions, measuring the level of particular concept. Cronbach’s alpha is a measurement used to define survey reliability by analyzing the internal consistency of each variable (George & Mallery, 2003). Therefore, five scales were measured – job characteristics, perceived organizational support, perceived supervisor support, rewards and recognition, and employee work engagement (results presented in Table 6). The reliability of the survey scales was measured, based on the interpretation of Cronbach’s alpha by George and Mallery (2003) (as shown in Appendix F). Table 6 Cronbach’s alpha. Internal consistency of each scale of the survey Scale Job characteristics Perceived organizational support Perceived supervisor support Rewards and recognition Employee work engagement Note. Created by author Questions 5-9 Cronbach’s α 0.83 Internal consistency Good 10-12 0.86 Good 13-15 16 17 0.93 0.87 0.96 Very good Good Very good As presented in Table 6, Cronbach’s alpha of all scales varies between 0.83 and 0.96. As these measurements fall under “good” or “very good” internal consistency, it can be stated that the questionnaire is statistically reliable. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 57 In order to varify the statistical reliability of the Cronbach’s alpha test, taking into account the small sample, aditional analysis was performed, following the study of Yurdugül “Minimum sample size for Cronbach’s coefficient alpha: a Monte-Carlo study” (2008). According to MacCallum et al. (1999), the commonality of variables influence the choice of a minimum sample size for factor analysis (as cited in Yurdugül, 2008). According to Yurdugül (2008), MacCallum’s et al. (1999) approach can be adapted for the reliability coefficient, in our case Cronbach’s alpha, by invoking principal component analysis (PCA). Yurdugül’s paper (2008) analyzes the changes of reliability of Cronbach’s alpha, affected by the sample size and the size of the largest eigenvalues conducted by principal component analysis (PCA). The Cronbach’s alpha can be treated as a “measure of first-factor saturation of the data set” (Crano and Brewer, 1973, as cited in Yurdugül, 2008, p.2). Therefore, coefficient alpha can be seen as “directly related to the eigenvalue of the first principal component” (Cortina 1993, as cited in Yurdugül, 2008, p.2). Yurdugül (2008) studied a population of D=10000, from which 100 random samples were drawn for each data sample set – n=30, 100, 300, 500. Cronbach’s alpha and first eigenvalue (1) were calculated by principal component analysis (PCA) for each sample. Yurdugül (2008) chose an approach for the analysis, where the computed first eigenvalues (1) were “categorized as “small” when 1<3, “moderate” when 3≤1<6, and “large” when 1≥6” (p.5). The findings showed that “when 1≥6, the estimates of coefficient alpha are unbiased for each sample size” (Yurdugül, 2008, p.6). As a result, a principal component analysis (PCA) was conducted for this paper, and the first eigenvalue was equal to 13,178 (as seen in Appendix G), which results in 1≥6. Therefore, the Cronbach’s alpha computed in this study is unbiased for the sample N=40. The data, collected during the empirical research, was further analyzed with descriptive statistics, Pearson correlation and regression. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 58 Results of the Empirical Research Descriptive statistics. After the analysis of the gathered data, it was concluded that the age of the respondents varied between 18 and 48 years old, but the majority (28 respondents) fell under the range of 25 to 36 years old, as well as of both, BGS LT (23 respondents) and BGS PL (5 respondents) (as shown in Appendix H). It can be concluded that the companies’ employees are quite young, considering the research sample being administration employees. The most frequent position of the respondents in the company was allocated evenly between Administrative and Managerial (as shown in Appendix I). The majority of employees of BGS LT (15 employees) fell under the Administrative position, and the majority of employees of BGS PL (3 employees) occupy the managerial positions. The duration of participants working for the company varied from less than 6 months to more than five years, but the most frequent range was 3 to 5 years, followed by 2 to 3 years, and 6 months to 1 year (as shown in Appendix J). The majority of the administration employees of BGS LT work for the company for 2-5 years (15 employees), while the majority of employees of BGS PL work for the company from 6 months to 1 year (2 employees), or 3-5 years (2 employees) (as shown in Appendix J). A conclusion can be made that in both, BGS LT and BGS PL there is a rather low percentage of turnover, and employees tend to stay in the company for a longer period of time. Though it is worth mentioning that, as BGS PL is a rather young company, established in 2010, a higher employee turnover is expected. First of all, in order to find out the level of each assumed antecedent of employee work engagement, present in one’s job – means of overall sample (all administration employees, N=40) were calculated, as well as, of each subsidiary seperately, referring to each antecedent. As an addition, the level of employee work engagement of the sample is presented by the means, as well. As mentioned before, employee work engagement can be treated as both, one-factor and three-factor solutions. Therefore, means of total employee IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 59 work engagement, and separate three dimensions (vigor, dedication, absorption) were presented. Means and standard deviations of all variables are presented in Appendix K. To start with the assumed antecedents of employee work engagement, job characteristics (autonomy, task identity, skill variety, task significance, and feedback) have a rather high evaluation. As shown in Figure 3, the mean of overall sample of job characteristics is 4.75, which is even higher than the computed mean of the whole questionnaire (all variables included) – 4.32. It is worth mentioning that the levels of autonomy and feedback in one’s work role are the lowest (means are equal to 4.48 and 4.23, respectively), compared to other job characteristics. The employees of BGS LT expressed a slightly lower perceived level of job characteristics – the calculated mean is 4.64. The administration employees of BGS PL perceive a relatively high level of job characteristics (mean - 5.26). To conclude, the respondents specified that they experience job characteristics to a rather high extent in their job. BGS LT BGS PL Overall Mean of questionnaire 7 6 5 5,26 4,64 4,75 4,32 4 3 2 1 Job characteristics Figure 3. Means of job characteristics in BGS LT and BGS PL. N=40 (nLT=33; nPL=7) To continue, the level of perceived organizational support, expressed by means, is presented in Figure 4. Similarly to the perception of job characteristics, employees perceive organizational support to a rather high extent – with the computed mean of the whole sample of 4.35. The respondents from BGS LT perceive slightly lower levels of organizational support than the overall sample, but there are no significant differences. The employees of IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 60 BGS PL tend to perceive higher levels of organizational support than the overall sample, possessing a mean of 5.05. To conclude, respondents feel that their commitment is valued, and their well-being is important for the company. BGS LT BGS PL Overall Mean of questionnaire 7 6 5,05 5 4,35 4,20 4,32 4 3 2 1 POS Figure 4. Means of perceived organizational support (POS) in BGS LT and BGS PL. N=40 (nLT=33; nPL=7) Shortly, the administration employees of both subsidiaries perceive a rather high level of supervisor support (as shown in Figure 5). The respondents from BGS LT perceive the same level of supervisor support in their jobs as the overall sample. The mean of perceived organizational support of Polish subsidiary exceeds both the mean of an overall sample, and the mean of the whole questionnaire (mean – 4.32). In other words, employees of BGS PL feel more care and trust from their supervisors than from their company, and experience supervisor support in their work more than any other antecedent of employee engagement. BGS LT BGS PL Overall Mean of questionnaire 7 5,48 6 5 4,52 4,31 4,32 4 3 2 1 PSS Figure 5. Means of perceived supervisor support (PSS) in BGS LT and BGS PL. N=40 (nLT=33; nPL=7) IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 61 A different situation is visible in Figure 6, presenting the means of rewards and recognition experienced in one’s job (means and standard deviations of separate variables of rewards and recognition are presented in Appendix L). The means of the possible rewards and recognitions are rather low. The means of the overall sample do not exceed 3.58, either considering the rewards and recognition (R&R) as a whole, or each variable separately. The employees of BGS LT tend to experience more freedom and opportunities, as a reward for good results – the mean of 3.64 is the highest of all variables. The same pattern can be visible in BGS PL. The administration employees of BGS LT also receive praise from the supervisor, or training and development opportunities as a reward more often than other forms of reward and recognition. BGS PL provides a promotion as a second most experienced form of reward by the employees – with the mean of 3.14. “Praise from a supervisor” is not extensively remote – with the mean of 2.86. The least frequently received form of reward in BGS LT is a promotion. Therefore, it can be concluded that the administration employees of Lithuanian subsidiary tend to keep their position for a rather extensive period of time. The administration employees of BGS PL rarely receive a public recognition (e.g. nomination of employee of a month). Despite the fact that there is a possibility to recognize most frequent forms of rewards in both, Lithuanian and Polish subsidiaries, administration employees of both subsidiaries are moderately or even poorly rewarded and recognized. The means of the perceived rewards and recognition all fall lower than the mean of the whole questionnaire. Moreover, employees of BGS LT and BGS PL experience any other antecedent much more frequently or to a higher extent than rewards and recognition. It can be concluded that supervisor or organizational support, as well as job characteristics are much more important for administration employees of both subsidiaries. In other words, respondents highly value autonomy in their work, feedback and support from their supervisor, trust and care from their company – the work environment is more important than the rewards. 62 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 7 BGS LT BGS PL Overall Mean of questionnaire 6 5 4,32 4 3 2,95 3,14 2,86 2,45 2,64 3,64 3,58 3,52 3,29 3,40 3,24 3,10 2,86 2,55 2,42 2,14 2,55 2,43 2 2,55 2,67 2,38 1,57 2,50 1,71 1 R&R Pay raise Promotion More freedom Praise from supervisor Training Public recognition Reward Figure 6. Means of rewards and recognition (R&R) in BGS LT and BGS PL. N=40 (nLT=33; nPL=7) Lastly, the level of employee work engagement is presented in Figure 7. As mentioned before, employee work engagement consists of three dimensions – vigor, dedication, and absorption. Therefore, both, one-factor and three-factor aspects were taken into account. Means and standard deviations of employee work engagement and its dimensions are presented in Appendix K. It is important to mention that all means, referring to employee work engagement, show higher values than the mean of the whole questionnaire. The mean of the overall sample, referring to employee work engagement as a one-factor aspect, can be considered high (mean – 5.09). The administration employees of BGS LT experience a slightly lower level of work engagement (mean – 4.89), compared to the overall sample, but it still has a relatively high value. The employees of Polish subsidiary experience a very high level of work engagement, expressed by the mean of 6.06. As mentioned before in the paper, one of the dimensions of employee work engagement – vigor – shows high IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 63 energy, a wish to put effort in one’s work, mental resilience and persistence (Schaufeli et al., 2002). As it is visible from Figure 7, employees of BGS LT tend to experience a lower level of vigor as a separate factor (mean – 4.71), compared to work engagement as a whole. There is only a very slight difference between the levels of vigor and total work engagement in BGS PL, comparing the means. The second factor of employee work engagement – dedication – is expressed by a sense of importance, inspiration, enthusiasm and pride in one’s work (Schaufeli et al., 2002). The level of dedication is higher than the level of vigor in both, BGS LT and BGS PL. The third factor of work engagement – absorption – is expressed through full concentration, absorption and high attachment to one’s work (Schaufeli et al., 2002). The employees of BGS LT tend to experience a lower level of absorption in their work, compared to dedication, but still higher than vigor. BGS PL strikes the highest mean of all three dimensions of employee engagement – 6.14 – referring to absorption. From the gathered data, it can be concluded that the administration employees of BGS LT experience a higher level of enthusiasm and inspiration while working. They are more likely to be fully concentrated and absorbed in one’s work. Though there are slightly lower levels of energy, invested in one’s work – the overall level of employee work engagement of Lithuanian subsidiary is rather high. The administration employees of BGS PL perceive a high level of attachment to one’s work and feel pride of the work they do. The levels of persistence and willingness to put effort in one’s work are lower than of other work engagement factors, but the level of onefactor employee engagement can be considered very high. 64 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT BGS LT BGS PL Overall Mean of questionnaire 7 6,06 6 5 4,89 5,09 4,71 6,14 6,10 5,95 4,93 5,07 5,25 4,89 5,11 4,32 4 3 2 1 Employee work engagement Vigor Dedication Absorption Figure 7. Means of employee work engagement and its dimensions – vigor, dedication, and absorption – in BGS LT and BGS PL. N=40 (nLT=33; nPL=7) After the analysis of the descriptive statistics, it can be concluded that no major differences occurred between the perceptions of the administration employees of BGS LT and BGS PL. Therefore, further study of the gathered data will be performed for the whole sample (N=40), without separate consideration of the subsidiaries. Correlational relationships. To start with, according to Chen and Popovich (2002), Pearson’s r (or correlation) should be performed when the sample size is not less than 30, in order for the results drawn from correlation to be valid (as cited in Choi, Peters & Mueller, 2010). After the descriptive statistics have been discussed, it is important to test the hypotheses raised. All the sets of hypotheses consist of the main hypotheses, referring to employee work engagement (e.g. H1. Job characteristics are positively related to employee work engagement), and the sub-hypotheses, referring to each dimension of work engagement separately (e.g. H1A. Job characteristics are positively related to vigor). In order to understand IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 65 the level of correlation between each assumed antecedent and employee work engagement, as well as, the significance of that relation – Pearson correlation was performed. The Pearson’s r shows the strength of the correlation between two variables (Brace, Kemp & Snelgar, 2012, p. 155). “As a rule of thumb, r values of 0 to 0.2 are generally considered weak, 0.3 to 0.6 moderate, and 0.7 to 1 strong” (Brace, Kemp & Snelgar, 2012, p. 155). In other words, the tested variables are correlated stronger when the value of Pearson’s correlation coefficient is closer to 1, meaning that one variable is strongly correlated with the changes in the second variable. The other important indicator of the strength of correlation is the significance value. If the value of significance is equal or less than 0.05 (2-tailed), a strong correlation between the changes in variables is expected to exist. Furthermore, if the value of significance is equal or less than 0.01 (2-tailed), a very strong correlation between the changes in variables is expected to exist. While performing an analysis for a relatively small sample, it is important to take into consideration both of the indicators – Pearson’s r and significance – as a small value of Pearson’s r (e.g. 0.2) can appear to be significant at p≤0.05 level, while it is generally considered a weak correlation. The summarized results of Pearson correlation, refering to employee work engagement are presented in Table 7. To start with job characteristics, there is a strong correlation to employee work engagement (r=0.704, N=40, p≤0.01). Further, perceived organizational support and perceived supervisor support, both have a strong correlation to employee work engagement (r=0.792, r=0.810, respectively). There is only a rather moderate correlation between rewards and recognition, and employee work engagement (r=0.383, N=40, p≤0.05). 66 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Table 7 Correlation table; dependent variable – employee work engagement Variable Employee work engagement - Job characteristics Employee work engagement Job 0,704** characteristics Perceived 0,792** 0,554** organizational support Perceived 0,810** 0,620** supervisor support Rewards and 0,383* 0.195 recognition Note. N=40; ** p≤0.01; * p≤0.05 Perceived organizational support Perceived supervisor support Rewards and recognition - 0,848** 0,312* - 0,378* - As the sub-hypotheses, presented in the paper, study the relations between the antecedents and the three dimensions of employee work engagement, it is important to test Pearson’s correlation between those variables, as well. The correlations between the antecedents and vigor are presented in Appendix M. It is visible that the correlations between perceived organizational support, perceived supervisor support, and vigor are significant and strong (r=0.810, r=857, respectively). These antecedents show highest positive relation to employees’ energy, effort and persistence put in one’s work, compared to characteristics of other dimensions. On the contrary, job characteristics may be considered to correlate with vigor in-between moderately and strongly (r=0.668). The correlation between the rewards and recognition, and vigor raises some concern. The Pearson’s r is slightly lower (r=0.322, N=40, p≤0.05), compared to the correlation between rewards and recognition, and employee work engagement. This correlation can still be considered moderately significant. It is rather interesting that the antecedents of employee work engagement have lower correlation coefficients, when correlated with dedication, rather than vigor (as shown in IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 67 Appendix N). There is a moderate to strong correlation between job characteristics and dedication (r=0.658); perceived organizational support and dedication (r=0.690); and strong correlation between perceived supervisor support and dedication (r=0.726). Rewards and recognition seem to be an exception in this case. The correlation between rewards and recognition, and dedication is moderate (r=0.409), with a significance of p≤0.01 (2-tailed). It can be concluded as a more significantly moderate correlation between this antecedent and dedication, compared to vigor. In other words, rewards and recognition have a stronger relation to employees’ sense of importance, enthusiasm and pride in their work, than to the characteristics of other dimensions. The correlation between the antecedents and absorption is presented in Appendix O. There is a moderate to strong correlation between job characteristics and absorption (r=0.689). It is worth mentioning that job characteristics have a stronger positive relation to employees’ concentration and attachment to their work, than to the features of other dimensions. Further, there is a strong correlation between absorption, and perceived organizational support (r=0.766), as well as, perceived supervisor support (r=0.733). The correlation between absorption and rewards and recognition can be stated as moderate (r=0.368, N=40, p≤0.05). After the careful analyses of the relations between the antecedents and employee work engagement or its dimensions, such conclusions could be drawn: H1. Job characteristics are positively related to employee work engagement. The first hypothesis, H1, is confirmed. There is a moderate to strong relation between job characteristics and employee work engagement. It is important to note that job characteristics have a stronger correlation to employee work engagement, compared to its dimensions. H2. Perceived organizational are positively related to employee work engagement. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 68 The second hypothesis, H2, is confirmed. There is a strong relation between perceived organizational support and employee work engagement. H3. Perceived supervisor support is positively related to employee work engagement. The third hypothesis, H3, is confirmed. There is a strong relation between perceived supervisor support and employee work engagement, as well as its dimensions. H4. Rewards and recognition are positively related to employee work engagement. The fourth hypothesis, H4, is confirmed. There is a moderate relation between rewards and recognition, and employee work engagement. It is worth mentioning, that rewards and recognition have a stronger correlation to dedication, compared to both, other dimensions, and employee work engagement as a one-factor aspect. Multiple linear regression. To start with, Speed (1994) stated that by testing a small sample, there is a likelihood of non-significant findings, rather than wrong findings. To be more precise, if significant findings are obtained with a small sample – analysis with larger samples is more likely to confirm them than overturn (Speed, 1994). Therefore, even with a small sample, regression can be conducted, as the findings are “far more likely to be true than not” (Speed, 1994, p. 96). Furthermore, Speed (1994) claimed that majority of regression type methods present lower restrictions for the cases-variables ratio. The ratio, offered by Speed (1994), is 3-5 observations per variable. Rules of thumb of the regression suggest a ratio (N/p) of 10 cases per each independent variable, or predictor (U.S. Department of Education, 1995). This approach is supported by several authors: Miller and Kunce (1973); Halinski and Feldt (1970); Neter, Waserman, and Kutner (1990) (as cited in U.S. Department of Education, 1995). Hair, Black, Babin and Anderson (2010) suggest a ratio not lower than 5 cases per each independent variable (p. 175). In order to verify the theory, there are four independent variables, analyzed in this paper – job characteristics, perceived organizational support, perceived supervisor support, rewards and recognition. As an example, there should IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 69 be at least 5 cases per each variable; therefore a sample of 20 should be used for the research (5*4=20). After the analysis of academic research of the sample size, suitable for regression, it can be concluded that N=40 fits the required criteria. “The regression coefficients are the weights used in calculating the regression variate and indicate each independent variable’s contribution to the predicted value” (Hair, Black, Babin & Anderson, 2010, p. 175). One of the important regression coefficients is R Square (R2), which explains how well the independent variables can predict the dependent variable (Brace, Kemp & Snelgar, 2012, p. 268). Further, the adjusted R squared (R2adj) is calculated, which takes into account both, the number of predictors and the number of cases, or observations in the study (Brace, Kemp & Snelgar, 2012, p. 268). It is considered to be the one coefficient defining the success of the model (Brace, Kemp & Snelgar, 2012, p. 269). It is also important to test the assumptions of regression analysis, in order to verify the validity of the regression model. The assumptions are: linearity, homoscedasticity, and normality. Linearity was tested for each independent variable with employee work engagement separately, and all the independent variables showed linearity. Homoscedasticity was tested step by step, by adding an additional independent variable to the regression analysis: 1) Employee work engagement, Job characteristics; 2) Employee work engagement, Job characteristics, Perceived organizational support; 3) Employee work engagement, Job characteristics, Perceived organizational support, Perceived supervisor support; 4) Employee work engagement, Job characteristics, Perceived organizational support, Perceived supervisor support, Rewards and recognition. Each step indicated the homoscedasticity. The final regression model, with all four independent variables included, is presented in Appendix P: the scatterplot shows that there is homoscedasticity in this case. Normality was examined by invoking such indicators as skewness and kurtosis – all independent variables showed normality. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 70 It is important to mention the value of adjusted R squared – 0.738, which indicates that the presented model explains 73.8 percent of the variance in the dependent variable (as shown in Appendix P, Table P2). In other words, 73.8 percent of variation in employee work engagement can be explained by the antecedents – job characteristics, perceived organizational support, perceived supervisor support, rewards and recognition. It is considered to be a large percentage of the variance explained. The values of significance present which independent variable, or predictor, accounts for the highest level of influence on employee work engagement. As it is visible in Appendix P, Table P4, job characteristics have the highest influence on employee work engagement (with a p=0.005). Perceived organizational support also shows a rather high significance (p=0.032). It is followed by perceived supervisor support (p=0.110), and rewards and recognition (p=0.232), which show a very low significance for employee work engagement. Therefore, it can be concluded that job characteristics and perceived organizational support have the strongest influence on employee work engagement. The empirical research determined that employee work engagement has the weakest correlation with rewards and recognition, out of four predictors. Other antecedents – job characteristics, perceived organizational support, and perceived supervisor support have relatively high correlations with employee work engagement. Important outcomes were presented, which defined that job characteristics and perceived organizational support tend to influence employee work engagement the most out of four predictors. Managerial Solutions Managerial solutions will be discussed, in order for UAB Baltic Ground Services (abbreviated BGS LT) and Baltic Ground Services Sp. z o.o. (abbreviated BGS PL) to improve or maintain the level of employee work engagement. All four antecedents of IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 71 employee work engagement will be elaborated, in order to present the most relevant solutions for the companies. Job Characteristics As it was mentioned earlier in the paper, job demands-resources (JD-R) model suggests that available job resources have a positive relation to employee engagement (Bakker & Demerouti, 2007). According to Schaufeli and Salanova (2010, p. 409), job resources have a potential to motivate employees, by stimulating growth and development. Job resources could be classified into organizational role (pay, career, opportunities, job security), interpersonal role (supervisor and co-worker support), and task (job characteristics – skill variety, task identity, task significance, autonomy, feedback) (Bakker & Demerouti, 2007). The empirical research in this paper studied the relation and influence of the predictors – job characteristics, perceived organizational support, perceived supervisor support, rewards and recognition – on employee work engagement. It can be assumed that the later mentioned predictors overlap with the job demands-resources model (JD-R). The organizational role of job resources includes pay, which could be linked to the concept of rewards and recognition. Further, organizational role could be related to perceived organizational support (POS). The interpersonal role includes supervisor support, which could be directly associated with perceived supervisor support (PSS). Job characteristics represent one of the roles of job resources – task. As confirmed by other researchers’ works, the empirical research in this paper also verified job characteristics to be related to and further, to have influence on employee work engagement. As an example, Macey and Schneider (2008) also claimed that job characteristics is one the main antecedents of employee work engagement. It is worth mentioning that motivating challenges (e.g. change) and participation in problem solving influence higher levels of employee work engagement (Petrou et al., 2012) through the IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 72 concept of job characteristics. Motivating challenges let employees exercise autonomy, task significance, task identity and skill variety in their work role. According to the study of Van Beek, Hu, Schaufeli, Taris and Schreurs (2012), autonomy in one‘s work role increase work engagement. In order to reach this positive outcome, employees have to feel challenged (Van Beek et al., 2012). Schaufeli and Salanova (2008, p. 393) discuss that job rotation, special projects or an entirely different course of work influences higher levels of employee work engagement through challenge and learning opportunities. As the majority of the administration employees of BGS LT work for the company from 2 to 5 years, it would be valuable to revise the career evolvement of their employees, in order to evaluate the change of their jobs through years, and a corresponding level of work engagement. Further, the level of employee engagement could be periodically boosted by an offer to change work position or even the company for a short period of time – up to two weeks. Firstly, “Baltic Ground Services” could offer their administration employees to try themselves in a position of e.g. a loader or a check-in agent. It would present a challenge and an additional set of skills, as well as, bring management closer to other employees of the company. Secondly, a challenge could be offered to exchange positions with the CEO for a day. It would bring the sense of significance and autonomy in one’s work. As “Baltic Ground Services” is a part of “Avia Solutions Group”, it presents an opportunity of exchange of employees between the companies. It would not only present employees with new information, different nature of the work, additional skills, but also opportunities for career evolvement in the company group. It is important to mention that effective job design and proper employee selection are claimed to have impact on employee work engagement (or more precisely, the meaningfulness of work) (May, Gilson & Harter, 2004). Job fit increases meaningfulness, which can be obtained by putting more effort into connecting personal employee ambitions IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 73 with particular work roles (May et al., 2004). Though both, BGS LT and BGS PL have a defined and detailed employee selection process, a new implementation could help an organization to increase job fit for newly hired employees. A so called realistic job preview, which is a tool used in employee selection and recruitment processes, may help to prevail a better job fit (May et al., 2004). It also helps to view the compatibility of a future employee and an organization (May et al., 2004). To define a realistic job preview – it is a detailed preview of a vacant position in an organization, presented to a candidate, including both, positive and negative factors of a job (Premack & Wanous, 1985). As an example, a challenging work may be explained in more detail: as a work role with stressful amount of workload, but high opportunities to develop. If a certain job demands working overtime, it is better to warn a possible employee beforehand to avoid discontent. To present a precise picture of a certain position, the head of Personnel department could gather valuable information from an employee in the same or similar position: with reference to annual evaluation surveys, information presented by the head of a respective department, small talk with colleagues. According to Gagné and Deci (2005, as cited in Van Beek et al., 2012), management or leadership style of an organization, as well, as supervisors may encourage autonomy, while clarifying particular tasks, providing reasoning, proposing different options. As it was mentioned earlier in the paper, both, BGS LT and BGS PL have a vertical organizational structure, which may limit the level of autonomy, according to the position kept. The empirical research verified a relatively lower level of autonomy, compared to other job characteristics, experienced in one‘s job. It can be summarized that one of the solutions for higher employee work engagement in BGS LT and BGS PL would be providing more autonomy to the employees in their work roles. A sense of autonomy could be provoked by providing employees with choice. To start with, each employee is obliged to follow certain IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 74 values and reach for set goals. It is crucial for a supervisor to explain the reasons behind values and goals, for employees to be on board, and feel a part of the organization. Further, employees could be presented with an opportunity to decide which way or measure to take, in order to reach a set goal. A decision of how to pursue a certain objective provides control over the situation, and therefore, a sense of autonomy. Lastly, a supervisor may entrust the employees with peripheral judgements, such as the issues discussed in a weekly meeting. Perceived Organizational and Supervisor Support As discussed earlier in the paper, Kahn (1990) suggests that psychological safety can be encouraged by support, perceived by employees from their organization and supervisor. Saks (2006) suggests that employees feel obligated to engage in their work when they experience higher levels of perceived organizational support. Further, perceived supervisor support can be viewed as a direct reflection of the organizational support (Rhoades and Eisenberger, 2002, as cited in Saks, 2006). Therefore, both of these concepts are significantly close. The level of perceived supervisor support by employees could be a consequence of the leadership style of the management. As an example, empowering leadership is considered to maintain high levels of cognitive, emotional, and physical energy of employees (van Schalkwyk, 2010), who perceive empowerment as authority and responsibility (Mathieu, Gilson, & Ruddy, 2006, as cited in Macey & Schneider, 2008). According to the empirical research both, perceived organizational support and perceived supervisor support gained very high ratings. Therefore, it is visible that these two intercepting concepts are highly related to the level of employee work engagement in an organization. According to Schaufeli and Salanova (2008), leadership is an important aspect influencing employee work engagement (p. 397). Pugh and Dietz (2008, as cited in Welch, 2011) even withdrew a connection between leadership and organizational effectiveness. An additional suggestion for BGS LT and BGS PL would be to draw more attention to the style of leadership of the supervisors, in IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 75 order to either maintain the current level of work engagement, or even increase it between administration employees. Transformational leadership, known as an employee-oriented approach (Schaufeli & Salanova, 2010, p. 410), could be a great example. Leaders are thought to be responsible for the level of work engagement in their teams – rephrasing, supervisors feel responsibility for their subordinates (Schaufeli & Salanova, 2010, p. 409). There are several features of leadership defined, which have a positive influence on employee work engagement: support, feedback, just actions, trust, honesty, constructive problem solving (Schaufeli & Salanova, 2010, p. 410). This leadership approach could be identified as transformational leadership, which is characterized as being able to raise the level of consciousness of one’s followers (or subordinates) about the desired goals and results, and provide the possible methods to achieve those results (Burns, 1978, as cited in McCleskey, 2014). The transformational leader has an ability to awaken different levels of needs of the followers, on the base of Maslow’s hierarchy (1954) – from safety to selfactualization (Bass, 2008, as cited in McCleskey, 2014). The followers reciprocate by dedicating the energy towards organizational goals, rather than striving for individual gain (McCleskey, 2014). Transformational leadership has four components: “idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration” (McCleskey, 2014, p. 120). Idealized influence consists of two aspects – 1) the followers portray the leader in a certain manner; 2) the leader presents the qualities through their behaviours (McCleskey, 2014). The leader motivates one’s followers, by providing a common goal, and inspiring them to face challenges – through inspirational motivation (McCleskey, 2014). The leader is encouraging innovation, by raising questions and rephrasing the problems – in other words, through intellectual stimulation (McCleskey, 2014). It is important to mention that leaders (or supervisors) are required to be open to criticism and confident, in order to solve any occurring problems, and therefore, inspire followers (their IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 76 employees) to be more efficient (McCleskey, 2014). Individualized consideration can be characterized as leader being a coach, in order to help one’s followers to reach maximum efficiency in their work roles (McCleskey, 2014). Supervisors are required to support their employees, and present them with a required training – in other words, create an emotionally positive climate for development (Schaufeli & Salanova, 2010, p. 410). Transformational leadership was claimed to encourage higher levels of employee work engagement, participation in extra-role performance, individual performance, and inner motivation (Schaufeli & Salanova, 2010, p. 410). As so many aspects in one’s work depends on the leadership style of a supervisor, it is crucial to consider it a priority when striving for higher levels of employee engagement. As a first step, a supervisor needs to understand personal leadership style – different quizzes, tests, either found in the Internet or provided by leadership courses, may help to understand the guidelines. Further, intensive leadership training and development courses should be considered. Information, presented in a concise manner, adapted to supervisor’s needs would be a suitable solution. Another important aspect of perceived organizational or supervisor support, expressed through leadership, is communication. The higher the level and the more appropriate the means of communication are within an organization – the higher the level of employee work engagement. MacLeod and Clarke (2009) define communication as a significant factor, influencing employee performance through work engagement (as cited in Welch, 2011). Communication is a tool, used to introduce employees to a common goal and vision of an organization (Welch, 2011). The content of the communication messages within the organization is important to consider. As an example, an employee with high emotional engagement (or a high level of dedication) needs a constant reminder of being a part of and cared by the organization (Welch, 2011). Employees, experiencing a high cognitive engagement (or a high level of absorption) require a detailed understanding of organizational IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 77 goals, and how employees could contribute to them (Welch, 2011). It is discussed that appropriate means of communication influence the development of an employee in their work role (Welch, 2011). As mentioned earlier in the paper, both, BGS LT and BGS PL have a rather tight communication between employees and their supervisors, as well as, the management – through constant meetings, discussions, and e-mail. Therefore, it can be concluded that both companies implement communication as a tool to increase employee work engagement, performance, and development. However, it is important to mention that administration employees of BGS LT tend to experience higher levels of dedication (or emotional engagement), which would require organization to remind them of their high value for the company. On the other hand, the administration employees of BGS PL feel most absorbed in their work, compared to other factors of engagement (or experience a cognitive engagement). As a result, a clear definition of organizational goals is more important in internal communication messages, as well as, how each employee can contribute to those goals. Rewards and Recognition The level of rewards and recognition reflect the extent of remuneration for an employee for reaching organizational goals (Choo, Mat & Al-Omari, 2013). The level of rewards and recognition in both, BGS LT and BGS PL are surprisingly low, compared to the high level of employee work engagement. Although other studies (Saks, 2006; Maslach & Leiter, 2008; Choo, Mat & Al-Omari, 2013) claimed that rewards and recognition is a rather strong predictor of employee work engagement, the empirical research in this paper suggested that rewards and recognition have the lowest correlation with employee work engagement, out of four antecedents. Further, the research showed that rewards and recognition have no statistically significant influence on work engagement. Though Bandura and Lyons (2014) claim that the meaningfulness of work is partially reached through IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 78 knowledge that fair rewards are achieved for reaching organizational goals – administration employees of BGS LT and BGS PL put more value on job characteristics, perceived organizational and supervisor support. General Suggestions The empirical research conducted in this paper was the first employee work engagement survey executed in BGS LT and BGS PL. There could be a suggestion made to develop so called wellness audits, in order to keep employees and the organization informed about their level of work engagement, and other related concepts (Schaufeli & Salanova, 2008, p. 392). Wellness audits would gather the required information about employee work engagement periodically, and it would be accessable for each employee individually online. This implementation would help employees to assess their engagement, and better understand the factors, causing lower or higher levels of engagement. Further, such implementation would give pabulum for a draft of employee development agreement, which contains defined personal goals for future growth, and what resources, provided by the company, would be needed to reach those goals (Schaufeli & Salanova, 2008, p. 392). Though both, BGS LT and BGS PL have implemented annual satisfaction survey in their companies, it does not cover an employee engagement factor, which could be an essential estimator of positive organizational outcomes: such as, increased financial performance (Xu & Thomas, 2011), better employee work performance (Kahn, 1992, as cited in Saks, 2006), employee commitment to organization (Albrecht & Andreetta, 2011), as well as, adjustment to change and innovation (Van den Heuvel et al., 2010; Slåtten & Mehmetoglu, 2011). Conclusions This paper has studied the concept of employee work engagement in an organization. 1. The external environment analysis showed a rather significant finding. A social factor, an ageing population of both, Lithuania and Poland presents organizations with a IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 79 worsening issue of recruiting young skilled workforce. Further, it was discovered that UAB Baltic Ground Services (abbreviated BGS LT) is in a beneficial situation, as there is only one competitor in the market. Therefore, by gaining a competitive advantage, such as, high levels of employee work engagement, BGS LT may lead the market. On the other hand, Baltic Ground Services Sp. z o.o. (abbreviated BGS PL) is presented with a rather difficult situation, as Polish market contains several competitors, both local and international. The internal situation analysis of BGS LT and BGS PL showed that both companies have highly developed human resource management processes. However, the levels of employee work engagement and the antecedents, influencing it, haven’t been measured before. Therefore, it was a suitable environment to perform the research. The study of academic papers presented a rather wide concept of employee work engagement. The antecedents and the positive outcomes of employee work engagement have been discussed. Finally, four elements were drawn – job characteristics, perceived organizational support, perceived supervisor support, and rewards and recognition – in order to perform the empirical research. 2. The quantitative research was conducted, on the basis of a questionnaire. The questionnaire was formed according to academic papers, adapting such scales as: Schaufeli’s and Bakker’s (2003) UWES-9 (employee work engagement), Hackman’s and Oldham’s (1980) job characteristics, Rhodes’s et al. (2001) perceived organizational support, Saks’s (2006) perceived supervisor support, Saks’s (2006) rewards and recognition. The empirical research concluded that: All the indicators showed rather similar outcomes for both, BGS LT and BGS PL. All four antecedents – job characteristics, perceived organizational support, perceived supervisor support, rewards and recognition – are positively related to employee work IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 80 engagement. However, the correlation between rewards and recognition, and engagement is the weakest. Job characteristics and perceived organizational support were defined to have the highest influence on employee work engagement. 3. Finally, managerial solutions were suggested for both companies simultaneously, as the empirical research showed high similarity of the findings. The suggestions were as followed: To present administration employees with job rotation, special projects or an entirely different course of work, in order to stimulate employee work engagement. To carefully assess job fit for each employee, especially when recruiting future employees. A method of realistic job preview was suggested, in order to prepare a candidate for the essence of a work role, and, therefore, avoid a higher turnover, caused by job misfit. To provide employees with higher levels of autonomy in their work roles. To implement the practice of transformational leadership, in order to motivate and encourage employees to strive for the success of the organization. To carefully distribute the communication messages within the organization, according to the engagement construct an employee is experiencing. To implement wellness audits, followed by employee development agreement, in order to provide useful information about employee work engagement to the employee personally. Further, these methods would provide the employee and the organization a set of goals, in order to achieve a specific level of employee engagement. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 81 Limitations Only administration employees of UAB Baltic Ground Services (abbreviated BGS LT) and Baltic Ground Services Sp. z o.o. (abbreviated BGS PL) have been involved in the research. As the level of work engagement of employees in other positions may differ from the administration employees, the companies should consider including other departments in the future studies of employee work engagement. The sample size of the research was rather small due to impossibility to gather a higher amount of respondents – due to the requests of “Baltic Ground Services”. On the other hand, the researchsample was representative of the population – administration employees of BGS LT and BGS PL. However, a larger sample size would be recommended for future studies. The questionnaire has been prepared in English, which is not a mother tongue of either BGS LT, or BGS PL. 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From Euromonitor International 2014, Corruption Perceptions Index: Euromonitor International from Transparency International. IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix B - Statistics International Euromonitor 92 http://www.portal.euromonitor.com/Portal/Pages/Statistics/Stat... Change instyle Corruption Go Perception Index of Poland through a period of 2008-2013 › Select a chart Note. From Euromonitor International 2014, Corruption Perceptions Index: © Euromonitor International 2014 Euromonitor International from Transparency International. 1 of 1 9/28/14 12:01 PM 93 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix C UAB Baltic Ground Services organizational structure Appendix D Baltic Ground Services Sp. z o.o. organizational structure BGS PL ORGANIZATIONAL CHART BGS PL Date: 27.01.2014 Page 1 (1) BGS PL 27/01/2014 CEO FINANCE DEPARTMENT HR AND ADMINISTRATION DEPARTMENT FINANCE MANAGER HEAD OF HR DEPARTMENT ACCOUNTANT ADMINISTRATION AND HR ASSISTANT PASSANGER SERVICES DEPARTMENT COO CATERING DEPARTMENT CATERING OPERATIONS MANAGER HEAD OF PASSANGER SERVICES DEPARTMENT QUALITY AND SAFETY DEPARTMENT EXCISE AND DUTY FREE MANAGER QUALITY AND SAFETY MANAGER RAMP SERVICES DEPARTMENT WARSAW FUEL STATION HEAD OF RAMP SERVICES DEPARTMENT OPERATIONS MANAGER CATERING SHIFT LEADER DEPUTY OF HEAD OF RAMP SERVICES DEPARTMENT CATERING OPERATOR/LOADER EXCISE AND DUTY FREE DEPARTMENT SENIOR FUEL OPERATOR FUEL OPERATORS SHIFT LEADER KRAKOW FUEL STATION KATOWICE FUEL STATION OPERATIONS MANAGER DEPUTY OF OPERATION MANAGER FUELING OPERATORS FUEL OPERATORS PASSANGER SERVICES DIVISION TICKETING DIVISION LOST AND FOUND DIVISION CHECK IN SHIFT LEADER TICKETING SHIFT LEADER LOST AND FOUND SHIFT LEADER CHECK IN AGENT / SENIOR CHECK IN AGENT TICKETING AGENT LOST&FOUND AGENT TECHNICAL DIVISION TRANSPORT DIVISION MECHANICS RAMP SERVICES DIVISION BAGGAGE HANDLING DIVISION GH OPERATOR SHIFT LEADER RAMP SHIFT LEADER LOADERS SHIFT LEADER GH OPERATOR RAMP AGENT LOADER IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 94 Appendix E The questionnaire form of the empirical research Baltic Ground Services My name is Smiltė Narkovičiūtė, I am a student at ISM University of Management and Economics. I am conducting a research about employee engagement for my bachelor thesis. Please take about 10 minutes of your time to complete this questionnaire. The survey is anonymous and confidential. 1. Please indicate the subsidiary you are working at. □UAB Baltic Ground Services (Lithuania) □Baltic Ground Services Sp. z o.o. (Poland) 2. Which of the following best describes your age? □18-24 □25-36 □37-48 □49-64 □65+ 3. Which of the following best describes your position in the company? □Administrative □Managerial □Accounting IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT 95 □Project Management □Technical □Other 4. How long have you worked at UAB Baltic Ground Services? □Less than 6 months □6 months – 1 year □1-2 years □2-3 years □3-5 years □More than 5 years Please respond to the following questions on a scale from (1) to (7), where (1) is “very little”, and (7) – “very much”. 5. 6. How much autonomy is there in your job? To what extent does your job involve doing a “whole” and identifiable piece of work? (i.e. does your job includes only small tasks, which are completed by others/ or you do the tasks from the beginning till the end) 7. How much variety is there in your job? 8. How significant or important is your job for the company? 9. To what extent do managers or co-workers let you know how well you are doing on your job? Please indicate the extent of each characteristic bellow, on a scale from (1) to (7), where (1) is “strongly disagree”, and (7) – “strongly agree”. 10. 11. 12. My organization really cares about my well-being. My organization is willing to help me if I need a special favor. My organization would forgive an honest mistake on my part. Please indicate the extent of each characteristic bellow, on a scale from (1) to (7), where (1) is 96 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT “strongly disagree”, and (7) – “strongly agree”. 13. 14. 15. My supervisor cares about my opinions. My supervisor really cares about my well-being. My supervisor strongly considers my goals and values. 16. How are you rewarded for your good results Very rarely -1 2 3 4 5 6 Very often -7 d. Praise from your supervisor e. Training and development opportunities a. A pay raise b. A promotion c. More freedom and opportunities f. Public recognition (e.g. employee of a month) g. A reward of appreciation (e.g. lunch) 17. Please respond to the following statements, on a scale presented in the table below. (VI1)At my work, I feel bursting with energy (VI2)At my job, I feel strong and active (DE1)I am enthusiastic about my job (DE2)My job inspires me (VI3)When I get up in the morning, I feel like going to work (AB1)I feel happy when I am working intensely (DE3)I am proud of the work that I do (AB2)I am absorbed in my work (AB3)I get carried away Never -1 A few times a year or less Once a month or less A few times a month Once a week A few times a week Every day -7 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT when I’m working Thank You for your time. Appendix F Cronbach’s alpha Cronbach's alpha Internal consistency α ≥ 0.9 Very good 0.8 ≤ α < 0.9 Good 0.7 ≤ α < 0.8 Acceptable 0.6 ≤ α < 0.7 Doubtful consistency 0.5 ≤ α < 0.6 Poor consistency α < 0.5 No or very poor consistency Note. Source: George, D., Mallery, P. (2003). SPSS for Windows step by step: A simple Guide and Reference. 11.0 update. 97 98 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix G Principal component analysis (PCA). The first eigenvalue (1) Total Initial Eigenvalues () % of Variance Cumulative % 13,178 3,640 1,863 1,420 1,148 ,930 ,847 ,492 ,462 ,428 ,390 ,350 ,282 ,273 ,234 ,216 ,177 ,127 ,121 ,099 ,096 ,060 ,058 ,041 ,036 ,023 ,009 48,808 13,482 6,900 5,260 4,250 3,446 3,138 1,824 1,710 1,586 1,446 1,296 1,044 1,011 ,867 ,800 ,654 ,470 ,448 ,367 ,355 ,222 ,214 ,152 ,132 ,087 ,033 48,808 62,290 69,190 74,450 78,700 82,146 85,283 87,107 88,817 90,402 91,848 93,144 94,187 95,199 96,066 96,865 97,520 97,990 98,438 98,805 99,160 99,382 99,596 99,748 99,880 99,967 100,000 Component 1 (Q5) 2 (Q6) 3 (Q7) 4 (Q8) 5 (Q9) 6 (Q10) 7 (Q11) 8 (Q12) 9 (Q13) 10 (Q14) 11 (Q15) 12 (Q16) 13 (Q16) 14 (Q16) 15 (Q16) 16 (Q16) 17 (Q16) 18 (Q16) 19 (Q17) 20 (Q17) 21 (Q17) 22 (Q17) 23 (Q17) 24 (Q17) 25 (Q17) 26 (Q17) 27 (Q17) 99 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix H Age of the respondents of UAB Baltic Ground Services (BGS LT) and Baltic Ground Services Sp. z o.o. (BGS PL) 30 28 Frequency 25 23 20 BGS LT 15 BGS PL 10 5 5 4 5 1 Overall 7 6 1 0 18-24 25-36 Note. N=40 (nLT=33; nPL=7) 37-48 Age 49-64 65+ 100 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix I Position of the respondents in UAB Baltic Ground Services (BGS LT) and Baltic Frequency Ground Services Sp. z o.o. (BGS PL) 18 16 14 12 10 8 6 4 2 0 16 15 16 13 3 1 4 2 2 1 1 2 BGS LT BGS PL Overall Position Note. N=40 (nLT=33; nPL=7) 4 101 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix J Incumbency of the respondents in UAB Baltic Ground Services (BGS LT) and Baltic Ground Services Sp. z o.o. (BGS PL) 12 10 10 8 8 Frequency 8 8 7 6 6 6 BGS LT 5 4 4 4 4 3 Overall 2 2 BGS PL 2 1 1 1 0 <6 months 6 months - 1-2 years 2-3 years 1 year Incumbency 3-5 years >5 years Note. N=40 (nLT=33; nPL=7) Appendix K Means and standard deviations of overall sample, as well as, of UAB Baltic Ground Services (BGS LT) and Baltic Ground Services Sp. z o.o. (BGS PL) separately Variable Job characteristics Perceived organizational support Perceived supervisor support Rewards and recognition Employee work engagement Vigor Dedication Absorption Mean (BGS LT) Mean (BGS PL) Mean (overall) 4.64 5.26 4.75 Standard deviation (BGS LT) 1.089 4.20 5.05 4.35 4.31 5.48 2.95 Standard deviation (BGS PL) Standard deviation (overall) 0.781 1.060 1.443 0.731 1.377 4.52 1.581 0.424 1.510 2.45 2.86 1.280 0.657 1.204 4.89 6.06 5.09 1.427 0.513 1.384 4.71 5.07 4.89 5.95 6.10 6.14 4.93 5.25 5.11 1.529 1.464 1.492 0.591 0.738 0.539 1.484 1.414 1.451 102 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix L Rewards and recognition: means and standard deviations of overall sample, as well as, of UAB Baltic Ground Services (BGS LT) and Baltic Ground Services Sp. z o.o. (BGS PL) separately Variable A pay raise A promotion More freedom and opportunities Praise from your supervisor Training and development Public recognition A reward of appreciation Mean (BGS LT) Mean (BGS PL) Mean (overall) 2.64 2.42 2.14 3.14 2.55 2.55 Standard deviation (BGS LT) 1.617 1.678 3.64 3.29 3.58 3.52 2.86 3.24 2.55 2.67 Standard deviation (BGS PL) Standard deviation (overall) 0.90 2.193 1.518 1.768 1.496 1.254 1.448 3.40 1.544 1.574 1.549 2.43 3.10 1.714 1.397 1.676 1.57 1.71 2.38 2.50 1.822 1.534 0.787 0.756 1.720 1.468 Appendix M Correlation table; dependent variable – vigor Variable Vigor Job characteri stics Vigor Job characteristics Perceived organizational support Perceived supervisor support 0,668** - Perceived organizational support 0,810** 0,554** - 0,857** 0,620** 0,848** Rewards and 0,322* 0.195 0,312* recognition Note. N=40; ** p≤0.01; * p≤0.05 Perceived supervisor support Rewards and recognition - 0,378* - 103 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix N Correlation table; dependent variable – dedication Variable Dedication Job Perceived characteri organizational stics support Dedication Job 0,658** characterist ics Perceived 0,690** 0,554** organizatio nal support Perceived 0,726** 0,620** 0,848** supervisor support Rewards 0,409** 0.195 0,312* and recognition Note. N=40; ** p≤0.01; * p≤0.05 Perceived supervisor support Rewards and recognition - 0,378* - Appendix O Correlation table; dependent variable – absorption Absorption Job character istics Perceived organizational support Absorption Job 0,689** characterist ics Perceived 0,766** 0,554** organizatio nal support Perceived 0,733** 0,620** 0,848** supervisor support Rewards 0,368* 0.195 0,312* and recognition Note. N=40; ** p≤0.01; * p≤0.05 Perceived supervisor support Rewards and recognition - 0,378* - IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Appendix P Regression model Table P1 Variables Entered/Removeda Model Variables Variables Method Entered Removed R&R, Job 1 characteristics, . Enter POS, PSSb a. Dependent Variable: Employee work engagement b. All requested variables entered Table P2 Model Summaryb Model R R Square Adjusted R Std. Error of Square the Estimate a 1 ,874 ,765 ,70876 ,738 a. Predictors: (Constant), Rewards and recognition, Job characteristics, Perceived organizational support, Perceived supervisor support b. Dependent Variable: Employee work engagement Table P3 ANOVAa Model Sum of df Mean Square F Sig. Squares Regression 57,123 4 14,281 28,428 ,000b 1 Residual 17,582 35 ,502 Total 74,705 39 a. Dependent Variable: Employee work engagement b. Predictors: (Constant), Rewards and recognition, Job characteristics, Perceived organizational support, Perceived supervisor support 104 105 IMPROVEMENT OF EMPLOYEE WORK ENGAGEMENT Table P4 Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Std. Error Beta (Constant) ,100 ,561 Job charact ,416 ,137 ,318 1 POS ,349 ,156 ,347 PSS ,254 ,155 ,277 R&R ,124 ,102 ,108 a. Dependent Variable: Employee work engagement t Sig. ,179 3,033 2,238 1,639 1,217 ,859 ,005 ,032 ,110 ,232
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