THE IMPACT OF EMPLOYEE ENGAGEMENT ON ORGANISATIONAL PERFORMANCE: A BALANCED SCORECARD APPROACH

Year 2018, Volume: 10 Issue: 2, 22 - 39, 31.12.2018

Roger Muller Elroy Smith Riyaadh Lillah

Abstract

Employee engagement is widely-considered to be a powerful and useful tool to
assist organisations achieve competitive advantage. This study investigates
employee perceptions regarding the impact of engagement on organisational
performance in the Eastern Cape Province. Organisations often fail to enhance
long-term business success when they focus narrowly on financial performance
measures. This study, consequently, utilised the balanced scorecard (BSC)
approach, consisting of financial, customer, internal process as well as learning
and innovation measures to evaluate perceptions of organisational performance.
A quantitative research design was utilised, surveying employees (n=428) from
private organisations through non-probability convenience sampling. Using
multiple regression analysis, the empirical results revealed that employee
engagement positively and significantly influenced all four measures of the BSC.

Keywords

employee engagement, organisational performance, balanced scorecard

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