Chapter 3 Cultural Issues in Employee Engagement: Illuminate, Causes, and Significance
47 Chapter 3 Cultural Issues in Employee Engagement: Illuminate, Causes, and Significance Radha Yadav Chandigarh University, India Riya Gangwar Jaipuria School of Business, India Sunaina Arora Jaipuria School of Business, India Frederic Andres National Institute of Informatics, Japan ABSTRACT The purpose of this chapter is to analyze the cultural issues in employee engagement. This chapter covers the importance of employee engagement and diverse workforce. The author focuses on the role of culture in employee engagement, and it shows a positive relation between the organization performance and employee engagement. In this chapter, the author also depicts cultural issues in the organization. In the end, the author emphasizes the techniques to improve the cultural issues to enhance employee engagement. INTRODUCTION Today’s management approach has been changed, Human Resource Department do lots of activity to engage, to enthuse and to excel the employees toward task. Famous organisation like Apple, Microsoft, Google and other companies follow the activities to build employee relations. Affection, Love and Cohesiveness are the social need of anyone’s. Today’s Human resource Department focuses on this social need to make a strong bond between the employer and employee. DOI: 10.4018/978-1-5225-7799-7.ch003 Copyright © 2019, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Cultural Issues in Employee Engagement Today’s world is digital world; thought processes and actions are continuously changing to face the challenges in this competitive world. Employee engagement is not tangible thing by which any organisation predicts the requirement of the employee by one touch, all employees are alike, degree of engagement will be different, and employees themselves will be responsible of own level of engagement. Companies have their own strategies to make employees engaged at a work place. These strategies may vary companies’ polices and work environment. According to the Gallup great work place award 2015; many popular companies who maintain the great workplace and environment to involve the employee into a work. ABC Supply Co., Inc, Indus Towers, Adena Health System and many more companies proved that engagement plays a vital role in the performance of the organisation. On above, Google, American Express, John Lewis, Hyatt, Southern Airlines and Virgin are on the top of the list of employee engagement. These companies focus on different approaches i.e. transparency, behaviour, listening to the employees, etc. Employee engagement can be of three types with the perspective of employees. Some employees are actively engaged with passion, dedication and determination towards the companies. They do assignments with futuristic approach; give creative and innovative ideas to the development of the organisation. Second type of employee engagement i.e. Not engaged, these types of employees do their work without energy and passion; personality of these employees are sleepwalker and lazy. Third types of employee engagement is actively engaged, these employees are not only unhappy at the work place but it also affects other employee to make unhappy them. It has been proved by many researcher that highly engaged employee give healthy environment and higher productivity to the organisation. Engagement can affect employees’ attitudes, absence and turnover levels and various studies have demonstrated links with productivity, increasingly pointing to a high correlation with individual, group and organisational performance, a success measured through the quality of customer experience and customer loyalty. Beyond this, it is a challenge to manage diverse work force at a work place. To make a engaged employee, main issue which occur is cultural issues. Culture varies person to person With advancement and enhancement in the usage of technologies, and the growing need to globalize organizations, industries are going across the national geographical boundaries and expanding the scope of their business dealings. Once a concern is globalized, the need for the search of the best person to carry out the respective tasks emerges. Now, that is something opening up new opportunities for candidates across international boundaries; making these boundaries thinner and gradually eliminating it as a criterion for choosing a job. As we see these days, the supremacy of Multi-nationals is sprouting; and so is the need to have different people from various countries and cultural backgrounds. This cultural mix is a boon to any organization in terms of new ideas, unique creativity, increased exposure, foster innovation, richer brainstorming and better customer understanding and decision making; but the same gives rise to a number of cultural issues in the organization too, like- the unclear culture, resistance to changes, vague assumptions, reduced communication, and the list continues. Employee engagement has become a crucial topic in the organisation to compete in the market, it is necessary to having highly engaged employee at a workplace. Meaning and Importance The thoughts, traditions, and social conduct of the people of a particular place or society form the culture of that place. Diversity in a culture adds to the rich dynamic quality at any given place. These distinctions 48 Cultural Issues in Employee Engagement exhibit a number of challenges in the work environment. Understanding these social contrasts goes far towards settling them. Employee engagement is a working environment approach bringing about the right conditions for the human resource of an organization that helps them come up with their best every day, focusing on the goals of the organization, whilst driving a push towards the organizational success with an escalated sense of their own well-being. People come from all kinds of backgrounds- different religions, values, beliefs, tradition, mindsets, statuses, and even beyond national boundaries- to work together, under the same roof, achieve a common goal and benefit each other interdependently. Certain issues arise due to the cultural differences amongst the human resource of an organization and lead to barriers to employee engagement. Role of Employee Engagement in the Growth of the Organization Better employee engagement leads to better yield or better output. At the point when employees are engaged at work, they feel a sense of belongingness with the organization. They believe that the work they are doing holds importance to the firm and hence work harder, along these lines. This, in turn, fulfill their three needs from the “Maslow’s hierarchy of needs”, namely- Self actualization Needs, Esteem Needs, and most importantly, the Need for Love and Belongingness. Hence, the contentment of the employee increases and so does his/her willingness to stay connected with the organization; the turnover rate declines and happy employees propel the organization to grow. How Does This Affect the Society? Culture is the social conduct and standards found in human social behavioral patterns. It includes the ideas, customs, behaviors, religion, language, food, music and a million other things of a particular people or society. Social or cultural distinctions will influence the receptiveness, responsiveness, tolerance, and open mindedness of a person to individual education and readiness to acknowledge data and absorb it into one’s own life. Various social perspectives impact the way we connect with other individual, including national culture, regional culture, gender culture, work culture, and different correspondence styles. Now, if we talk about diversity at workplace, we will come across a number of challenges in their working styles because you cannot just put a bunch of individuals together with immense contrasts and anticipate them to get along from the very first day. Many of them aren’t even tolerant enough to be working with people of distinct social backgrounds and everything gets muddled up at the end. In order to minimize the aftermath of employing a diverse workforce, diversity trainings and strategic management for the diversity takes place that permeates every department and function of the organization. How Can Cultural Issues Decrease the Performance of the Employees? The culture of an organization and its productivity are closely related. It is true that diversity brings a lot of challenges at the workplace; challenges in the management of the firm, communication barriers, resistance to change, tolerance level of the employees, power and politics, and many more. These obstacles play a colossal role in decreasing the level of productivity and efficiency of the employees and hence the organization. The following are a few limitations of diverse culture of a workplace- 49 Cultural Issues in Employee Engagement 1. 2. 3. 4. 5. Communication and language barriers can lessen the viability of the employees. This inefficacy can lead to conflicts and affects the team performance. Conflicts and clashes are generally caused when individuals have diverse opinions and priorities in light of different individual demands and needs. Differences in backgrounds, social statuses, and experiences lead to difference in mindsets, thought processes and opinions too, which in turn lead to another reason for struggling in the multicultural environment. The reason that individuals are not contented in working in a diverse environment is on the grounds that they do not consider it a better soil which according to them is due to the dissimilar people around them. The mentality of “we have always done it this way” is resistant to change and does not accept, rather silences new ideas coming from the diverse workforce. Significance of Cultural Issues in Employee Engagement With the growing needs of any organization to go global, there is a current trend of multicultural workforce too. Therefore, employees are expected to simultaneously and adequately interact with other employees belonging to different cultural backgrounds because an organization’s efficacy and competitiveness relies on its capacity to embrace the multicultural environment and understand its advantages. Culture and engagement is the most vital issue organizations face round the world. In a Deloitte study, it has been found that 87% of the organizations specifically point it out as one of their top challenges. On the other hand, if individuals start seeing its brighter side, they will come to know in how many ways workplace diversity can benefit them. 1. 2. 3. 4. 5. 50 Variety in Perspectives and Viewpoints: A large pool of ideas and opinions can be created using the viewpoints of the diverse workforce that can be drawn for the strategic requirements of the business. Adaptability: While working and interacting, with people from all cultures, individuals make peace with it and ultimately learn to adapt to such surroundings which is beneficial not only for the organization but also for them as a human being. Broader Service Range: A differing collection of skills and experiences (e.g. learning various languages, understanding of various cultures) enables an organization to give world-class worldwide services to their customers. Effective Execution: Sometimes competitiveness can also lead to high productivity amongst the employees leading to better execution of the skills of individuals at their tasks. Also, various techniques would then be able to be executed; bringing about higher efficiency, benefit, and rate of return. Diversity Trainings: Diversity training is any program intended to encourage positive inter-group collaborations, decrease discrimination on the basis of difference in culture by forming prejudices and make the individuals different from others learn how to with each other effectively Cultural Issues in Employee Engagement LITERATURE REVIEW There are many studies conducted in order to mitigate these issues and get the best out of the employees of the concern- like the one to look after and analyze, at a business unit, the relationship between employee satisfaction -engagement and the results of customer satisfaction, efficiency, productivity, profit, employee turnover and other concerned variables (Harter, 2002). One study is done on the accounting firms to analyse the factors that improve the commitment and engagement at work place. Findings show that company’s value and organizational culture are significantly related with the commitment and employee engagement (Barkman and Sheridan; 2002). If company does not follow sound and appreciable culture, it impacts negative impression of the top management among employees. In this condition, employee prefers to quit the organization. Another study says about the organizational culture in Saudi Arabia. This study says that training & development, organization communication, rewards and recognition enhance the interest of the employees in the job. Employees feel more engaged and motivated at the workplace. Another study done on qualitative approach that provided a restorative chance to enhance the knowledge of the relationship of organizational culture with employee engagement in Saudi banks Results also show that Islamic culture influence employee engagement in Saudi banks, it affects on Non-interest bearing transactions, and the female segregation rule. (Shehri, Laughlin Ashaab & Hamaad; 2017). Employee engagement is a positive fulfilling work-related state of mind that can be characterized by three characteristics i.e. vigor, dedication and absorption. (Schaufeli & Bakker; 2004). One researcher proves that culture of the organization should be compatible with the values of the employees. (Allen; 2010). There are four types of culture that affects the employee engagement among employees i.e. Power culture, support culture, Role culture and achievement culture. (Brenyah and Darko; 2017) It was observed by many studies that culture of an organization that drives the employee engagement (Lockwood, 2007; McBain, 2007). Appropriate compensation and benefits for the employees are one of the primary factors that contribute to the desired employee engagement, apart from friendly and supportive work environment. It is found by the research as well as from the observations of the successful companies that there is a direct link between the corporate culture, commitment and engagement (Schein; 1985, Rashid, Sambasivan & Johari, 2003). According to the Mickenzie report, the concept of the organizational culture just not related to the environment at work place, it covers the every aspects of the organizational life and it also affects on the employees. One research says that if management give their little concern about the culture then it can increases the employee engagement in job but that concern should be in continuous process. (Reilly; 1989) In Social Exchange Theory, given by George Homans, it states that when employees receive certain employee benefits or the righteous advantages of working in the organization from their employer or the management, they feel more engaged and more motivated towards organization although from different cultures (Homans, 1961). Another study says that ideal theoretical standards for understanding work behavior in an organization gives result in terms of more committed, loyal, responsible, and trustworthy employees (Cropanzo, Mitchell, 2005). Where POS (Perceived organizational support) is how much employees bank upon that their organization regards their commitments and contributions, and thinks about their prosperity and well-being, satisfying their socio-emotional needs. Researcher found that perceived organization support is positively related to employee engagement (Sacks, 2006; Ram & Prabhakar, 2011; Shuck, 2010). 51 Cultural Issues in Employee Engagement One study proves that employee engagement is significant positively related to the loyalty of the employees towards the organisation (Schaufelli and Bakker, 2004; Vazirani, 2005). In another study it is noted that employees feel a sense of commitment towards the organization when they are engaged, they feel contented with their work as well as with the company which leads to high retention of employees (Haid and Sims 2009). EMPLOYEE ENGAGEMENT AND CULTURAL ISSUES A research conducted by Mercer Human Resource Consulting helped in figuring out that- the typical country standards for propelling the engagement and for other employee perceptions vary considerably from place to place and region to region – about their work and their employers. A core set of propelling factors or drivers is emerging globally. This might help MNCs and globally functioning concerns differentiate between local-global issues of engagement in designing and strategizing a global employee engagement strategy and alter the implementations to cater to the needs of the local workforce. (Sanchez & McCauley, 2006) Social identify theory explains the concept of the individuals’ culture affects the person’s attitude and behavior and also the team dynamics (Josee & Shisia, 2004). The rationale to justify the cultural change effects on individuals and organizational performance. Individual’s similarity on visible and permanent traits influences the feelings of identification. And identification based on demographic similarity is related to in-group inclinations and team conflicts. (Tsui, Egan & O’Reilly, 2006). It is also explained as (‘the portion of an individual’s self-concept derived from perceived membership in a relevant social group’ (Turner, John; Oakes, Penny, 1986). It is used to deduce and comprehend how a change in individuals’ culture affects the person’s attitude and behavior and also the team dynamics (Josee & Shisia, 2004). The rationale to justify the cultural change effects on individuals is that the individual’s similarity on visible and permanent traits influences the feelings of identification (Tsui, Egan & O’Reilly, 2006). Inside groups, identification based on demographic similarity is related to in-group inclinations and team conflicts. Similarity/Attraction Theory posits on the notion that- individuals with similar traits and attributes (especially the demographic aspect), enhances the interpersonal attraction and affinity. This is because people with backgrounds akin, feel that they might share similar tastes and interests that will make them comfortable around each other, ultimately bringing an ease and convenience for them in working together. A research earlier (using the above mentioned attraction theory) found that differences in the similar stated aspects leads to lack of attraction caused due to lesser conversation, message misinterpretation and other communication barriers (Cameron & Quinn, 2002). As with social identification and categorization theory, similarity/attraction research would anticipate that high levels of culture change in an association or in a work group are probably going to prompt flawed work forms. These flawed work procedures will, thusly, prompt weaker execution. Why Do Cultural Issues Occur in Employee Engagement? Employee engagement, a term coined by the Gallup Research Group, is widely used and practiced actively in every other organization for at least one of the two reasons- it’s analytically proven relationship with productivity, profitability, customer satisfaction, employee retention and safety (Buckingham & Coff- 52 Cultural Issues in Employee Engagement man, 1999; Coffman & Gonzalez-Molina, 2002). However, this takes a lot of effort due to the varying cultures in the organization. Culture includes everything from an individual’s brought-up, lifestyle and, beliefs to ideas, mindsets and, social behavioral norms. A few of the issues caused by the distinguished cultural aspect in employee engagement are: 1. 2. 3. Values and Beliefs: People coming from different family backgrounds possess different mindsets, perceptions, opinions and, discernments. Naturally, they are going to depict certain distinguished values and beliefs according to their brought up and cultivation. Values are basically the guiding principles of people’s internal conception of what is good and constructive or bad and undesirable. Hard work, discipline, usefulness, trustworthiness, punctuality etc. are some personal values that enhance an employee’s efficiency and efficacy in the company. The importance of these values is believed to be different from person to person and hence, it creates a gap between the employees and engagement, since the non-dominant cultural group always has to adapt according to the values and beliefs of the dominant cultural group of the organization. Demographic Aspect: The demographic aspect is anything relating to demography or the structure of the population that can be age, gender, race, education, income level, marital status etc. According to the similarity/attraction theory, if two people have the same age group or education or other similar demographic factors stated above, will have a better interpersonal interaction (Cameron & Quinn, 2002). The perceived age similarity relates to the workers at a higher level of satisfaction and hence engagement (Avery, D. R., McKay, P. F., & Wilson, D. C., 2007). This could bring in comfort to work around each other and would prompt enhanced work forms, productivity, profitability and a healthy competition as well. Whereas, on the other hand, absence of this could cause diversity issues. Attitudes and Behavior: Attitude is a driver of behavior. It is a settled way of thinking about something that can be either positive or negative. It can be seen in a person’s response to his or her surroundings. Some negative attitudes are harmful in the work place and can spread to the ones around them that can impact the co-workers’ performance as well. To change these attitudes, is a duty of everyone (manager, employees and the organization). This is another cultural issue that stands as a rift to employee engagement pertaining to differences in individuals’ and group’s attitudes. Techniques to Improve Employee Engagement There are a number of cultural issues standing between an effective organization culture. Some ways to improve the employee engagement cause due to the prevailing cultural issues in the concern are: 1. Respect and Accept: It is one thing to hire and employ a diversified workforce for the company in order to acquire varied forms of talent; and it is another to deal all of them with deference and dignity by way of inclusion. Again, it is the responsibility of the employees, manager and the organization. A few statistics to check out the effectiveness of inclusiona. b. c. Inclusive teams consistently outperform their peers by 80% on team-based challenges. (Deloitte) Ethnically-diverse organizations are 35% more likely to outperform competing firms. (McKinsey) More women-led (41%) than male-managed (35%) teams report being engaged. (Gallup) 53 Cultural Issues in Employee Engagement Now, once the personnel are distinguishing in terms of the demographic aspect, it is now the responsibility of the workforce to take the only solution, i.e. to accept and adjust accordingly and work peacefully in harmony. 2. 3. 4. 5. Cross-Cultural Training: Globalization advancement in the areas of economic, political and social is leading to greater interpersonal cross-cultural and diversified contact. Since not everyone is able to adjust to this connect, cross-cultural trainings have been proposed by researchers in order to make the working classes have an effective communication. It is found that these trainings are successful in order to mitigate the drift and have a better contact (Black &Mendenhall, 1990). Active Grievance Solving Process: Diverse workforce gives rise to lots of misunderstandings and conflicts due to variation in ideas, beliefs, opinions, perspectives, etc. Such conflicts lead to complaints and grievances. This calls for an active process in every organization that is able to get to the bottom of the problem and fix it. Interaction/Communication: In a study, it was highlighted that the internal level of interaction amongst the employees is food to considerably good degrees of employee engagement (Public Relations Review, 2017). It is certain that employee communication and employee engagement are inter-linked (Kang & Sung, 2017). Employee engagement aids to considerably decrease the employee turnover intention and also increases supportive employee communication attitudes and behaviors. Exit Interviews: An exit interview is a kind of interview held in order to retain the employee leaving the organization. For the purpose of employee retention, counseling takes place that is a psychological healthcare intervention at workplace (Padmasiri & Jayatilake, 2016). This can not only prevent employee turnover but can also solve the prevailing problem between the employee and the company, making the relations healthier than they were before. This, in turn, becomes an advantageous situation when we talk about employee engagement. CONCLUSION Employee engagement is the spine of an organization’s healthy work environment. As discussed in the chapter, there are a number of ways to attain that like “Respect & Accept, Cross cultural trainings, Active grievance solving process, Interaction, Exit Interviews, and many more” -, and not to deny, there are a number of cultural issues too like- “Values & Beliefs, Demographic Aspect, Attitudes & Behavior, and so on” . Organization needs and demands of the market to attain the diverse work force but to handle this work force can be tough. Todays’ manager has been working to maintain diverse work force by engagement practices, So employees get awareness of values, belief, life style, behavior and so on. Techniques After reviewing the researches of many famous researchers- Gallup, Harter, Schmidt, Hayes, Suharti, Suliyanto, Haid, Sims, Schein, O’Reilly, Sanchez, McCauley, and many more, it can be certainly concluded that employee engagement is a necessity these days in this globalised market where there are people from all over the world working together under the same roof. To keep them working in harmony, under the same roof, with employee-satisfaction as the key objective of the organization, there is a need to have certain drivers of employee engagement like- “Work environment/organizational culture, job role, rewards & recognition, learning & training opportunities, quality of interaction with peers and superiors, and many more”. Employee engagement is that buzz-word in the industry that has changed 54 Cultural Issues in Employee Engagement the perception of the management, considering the fact that how crucial it is to be employee-centric for an organization in order to positively impact the productivity. Therefore, it is important for companies to see and understand what are the ‘causes’ behind employee engagement, if they want to influence the ‘effect’ of employee engagement. In the last, factors of culture affects the employee engagement at the work place. An engaged employee will exhibit only not better performance but will be intrinsically motivated. When an employees understand their colleague’s culture, values and belief, and give respect to the diversity. These understanding enhance the cohesiveness among employees and reduce the barrier which comes from the different factors of culture, and increased the engagement of employees at the work place. 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SIES College of Management Studies Working Paper Series (WPS05/07). 56 المملكة العربية السعودية وزارة التعليم الجامعة السعودية اإللكترونية Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University College of Administrative and Financial Sciences Assignment 3 Business Ethics and Organization Social Responsibility (MGT 422) Due Date: 13/4/2024 @ 23:59 Course Name: Business ethics and organization social responsibility Course Code: MGT 422 Student’s Name: Semester: Second CRN: Student’s ID Number: 24045 Academic Year:2023-24-2nd For Instructor’s Use only Instructor’s Name: Dr. Samreen Akhtar Students’ Grade: Marks Obtained/Out of 10 Level of Marks: High/Middle/Low General Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Learning Outcomes: No CLO-6 Course Learning Outcomes (CLOs) Write coherent project about a case study or actual research about ethics The content is available for free download in knowledge resource from the SEU homepage: Read the following article available in SDL: Yadav, R., Gangwar, R., Arora, S., & Andres, F. (2019). Cultural Issues in Employee Engagement: Illuminate, Causes, and Significance. In N. Sharma, N. Chaudhary, & V. Singh (Eds.), Management Techniques for Employee Engagement in Contemporary Organizations (pp. 47-56). IGI Global. https://doi.org/10.4018/978-1-5225-7799-7.ch003. https://0y11jlx92-y-https-www-igi–globalcom.seu.proxy.deepknowledge.io/gateway/chapter/full-text-pdf/221398 Answer the following questions: 1. Discuss the role of employee engagement in the growth of organization as argued by the author. (Not less than 400 words) 3 Marks. 2. Explain the significance of cultural issues in Employee engagement addressed by the author. (not less than 400 words) 3 Marks. 3. According to the author, why do cultural issues occur in employee engagement? Explain the techniques to improve employee engagement. (not less than 500 words) 4 Marks. • Note: All answers should be supported with proper references.
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