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The Impact of Employee Engagement on Organizational Performance: A Study on Malaysian Pharmaceutical Organization

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Organizational performance and employee engagement are vital elements for sustainability of business entities. In recent years, many organizations had suffered heightened turnover rate and pharmaceutical firms are no exceptions to it. Many pharmaceutical manufacturers have intensified their productions in achieving a faster response to the Nobel Coronavirus (COVID-19), where employee engagement has begun to suffer with high turnover rate. Hence, the current study investigates the impact of employee engagement on organizational performance in a local pharmaceutical manufacturing company. It is important as engaged employees cultivates good work culture, retention rate and contribute towards enhancement of business functioning, especially in pandemic-stricken environment. Online survey method was employed for data collection and it was analyzed with IBM Statistics Version 26. The study reported that working environment and training and development contribute positively towards employee engagement and thus, to organizational performance. Meanwhile, it revealed statistically non-significant relationship between rewards and recognition with employee engagement. Also, a significant partial mediation effect of employee engagement was found between factors of employee engagement and organizational performance. In future studies, other factors can be studied with respect to local and international pharmaceutical organizations with broader sample size to confirm the casual relationship found in this study.
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In-Text Citation: (Rajendran & Doraisamy, 2022)
To Cite this Article: Rajendran, N., & Doraisamy, L. (2022). The Impact of Employee Engagement on Organizational Performance: A Study on Malaysian Pharmaceutical Organization. International Journal of Academic Research in Business and Social Sciences. 12(7), 225– 290.