The Impact of Employee Engagement on Organization Performance: A Case of Pact, Nairobi

A Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement of the Degree of Masters in Organizational Development (MOD)The purpose of this study was to investigate the impact of employee engagement in Pact Kenya. The study will be guided by the following research questions: What are the effects of lack of employee engagement on organization performance at Pact? What engagement strategies exist for employees at pact? What is the impact of engaging employees at Pact organization? The research adopted a census descriptive design with a target population of all 28 employees of pact organization. Questionnaires were used to collect data after which the data was analyzed using descriptive statistics to allow conclusions to be drawn. The research begun with a pilot survey this is because the researcher needed to establish whether the questionnaires that were used were suitable enough to allow respondents to understand the questions and as well as to meet the overall objective of the study. The pilot study was also done to ensure accuracy and completeness of the research instrument. The process of data collection was be enhanced by the use of a research assistant. Data coding was then done followed by data presentation via tables and, figures and graphs. In this study, a descriptive approach to data analysis was used to analyze data collected. Quantitative data collected was analyzed using SPSS software version 21 and presented through percentages, means, standard deviations and frequencies. Data was collected by use of likert scale questionnaire of 1-5 which was administered to the respondents through the drop and pick method. From the findings on the study Pact as an organization has committed to ensuring employees are engaged through participation of all employees in the strategy formulation from all levels. From the study it was found that Pact has ensured that there is a clear link on what the employees do on a day to day basis with the organization’s strategy and overall goal. The study also shows that employee engagement has a positive impact on organization performance. Employees at Pact are involved in the decision making and this has attributed to more committed employees at the work place. Most of the employees alluded to the fact that they have all the tools and resources needed to work effectively across department. The study also showed that employee skills and abilities cannot be fully utilized without involving employees in the organization. Pact has prioritized on communication flow in the organization through weekly webinars, brown bags in the afternoons and this has ensured a clear direction on the employees on what the organization strives to achieve in the long run. It was concluded that there is a relationship between employee engagement and employee performance. This is because lack of employee engagement lowers employee commitment and employee competence. In the same way lack of employee engagement affects employee understanding of why the company is going in a particular direction. Additionally designing and implementing an effective employee engagement system is critical to employee performance. This research recommended that Pact should enhance and strengthen its engagement strategies to the employees through awareness creation so that as employees continue performing their daily functions they may feel proud of working in that particular organization and discharge their daily duties in the right manner. Further recommendation was that Pact should allow its employees to make inputs in decision making in the organization. Pact organization should enhance Effective employee communication, employee empowerment, effective strategy formulation and monetary rewards which encourage employees to carry out their duties effectively hence improving the performance of the organization at Pac