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Essay / Research Paper Abstract
This 11 page paper looks at the concept of employee engagement and considers how it is related to the profitability of a firm. The paper starts by defining employee engagement and the links to the service-profit chain. The evidence for employee engagement leading to greater profits is reviewed as well as looking at why there may be a link with superior profits. The bibliography cites 20 sources.
Page Count:
11 pages (~225 words per page)
File: TS14_TEempengrage.rtf
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Unformatted sample text from the term paper:
from those resources. In recent years there has been an increasing level of attention paid to human capital and the best way in which to leverage the benefits of the
employees could provide to the employer. One concept that is proving valuable to many companies is that of "employee engagement". This is a concept which is closely related to the
mother of the service-profit chain put forward by Heskett (et al, 1994). The service profit chain has now become known as the service value chain (Cook, 2008). The service profit,
or service value chain, is based on research that indicates a strong link between the quality of service is provided by the employees often organization and what is taking place
inside that organization (Cook, 2008). This is a model which has been adopted by a large number of companies; Sears attributes the adoption of an "employee customer profit chain" which
put the concept of employee engagement into practice within the organization, with the significant turnaround of a loss making department. In a single year the merchandising division moved from a
$3 billion deficit to position where they have a net income of $752 million (Cook, 2008). The concept of the service profit
chain is that there is a direct link between employee loyalty and satisfaction and way in which service is provided to customers, where there is a high level of employee
satisfaction and level of service and the resulting customer satisfaction will be higher than in organization where there is a low level of employee satisfaction. This was found in the
research by Heskett (et al, 1994), and has been built on and develop into the concept of the employee engagement. Under the concept
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