The influence of employee engagement on organizational commitment a study in non banking financial companies

Abstract

Employee Engagement has established a great deal of thoughtfulness in the last decade between people in industry and academia (Macey and Schneider, 2008). Macey and Schneider (2008), state that Employee Engagement is an innovative human resource practice that can be used by every business organization in order to handle the uncertainty of turbulent industry environment. In the corporate world every company wants to be successful and has a competitive edge over others. In addition, one of the biggest assets of every company is their talented employees, who can flourish with vigorous workforce, dedicated and engaged in their work. Now days, Employee Engagement has thus become the key phenomenon in defining the success of companies. (Patro, 2013) Employee Engagement and Organizational Commitments are essential components of the organization which help them to handle globalization and global recession. Many researchers are interested in analyzing the engagements of the employees at work and their Organizational Commitment and the results of their study is also evident that Employee Engagement has positive relationship with organizational performance. (Macey and Schneider, 2008; Mathieu and Zajac, 1990) Like all the other companies, Non-Banking Finance Companies (NBFCs) have also seen a tremendous growth in India, where it has played a significant role in credit growth over the last few years and this sector has registered a Compound Annual Growth Rate (CAGR) of 19% and 18% respectively. Moreover, the data provided by Reserve Bank of India, (RBI) also shows that the NBFCs have 22% as Short Term funding, comprising of Commercial Papers (CPs), Short Term Loan, Short Term Deposit and other Short Term Liabilities. Out of this, nearly 50% comprises of CPs. Therefore, it is the need of the hour that every NBFC should strive to utilize their fullest potential in order to grow and retain the prominent position in the industry through engaged and committed manpower. newline