Employee Engagement and its Impact on Organizational Development: Evidence from Small and Medium Enterprises (SMEs) in Ghana

This study evaluated the intricate relationship between employee engagement and organizational development within small and medium enterprises (SMEs) in Ghana. Pertinent literature was reviewed on the influence of employee engagement on organizational development and relationship between employee engagement and organisational development of SMEs in Ghana. The study used quantitative method through cross-sectional survey design. Data were collected from 360 employees across various SMEs in the Eastern Region of Ghana. Structural equation modeling (SEM) was utilized to assess the relationships between employee engagement and organizational development outcomes. Results indicate a significant positive effect of employee engagement on organizational development, suggesting that higher engagement levels correspond to improved organizational performance, innovation, and adaptability. The findings underscore the importance of fostering employee engagement as a strategic imperative for organizational growth and sustainability in the contemporary business landscape.

Employee Engagement, Human Resource Management

1. Acharya, A., & Jena, L. K. (2016). Employee engagement as an enabler of knowledge retention: resource-based view towards organisational sustainability. International Journal of Knowledge Management Studies, 7(3-4), 238-256. [Google Scholar] [Crossref]

2. Agyemang, F. G., & Ofei, S. B. (2021). Strategic human resource practices and SME performance in Ghana: The mediating role of employee engagement. International Journal of Productivity and Performance Management, 70(6), 1361–1380. https://doi.org/10.1108/IJPPM-11-2019-0505 [Google Scholar] [Crossref]

3. Ahmed, S., & Pilbeam, C. (2018). Exploring employee engagement from the employee perspective: Implications for HRD. European Journal of Training and Development, 42(7/8), 400–418. https://doi.org/10.1108/EJTD-01-2018-0003 [Google Scholar] [Crossref]

4. Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2018). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 5(1), 7–35. https://doi.org/10.1108/JOEPP-08-2017-0063 [Google Scholar] [Crossref]

5. Albrecht, S. L., Breidahl, E., & Marty, A. (2018). Organizational resources, organizational engagement climate, and employee engagement. Career Development International, 23(1), 67–85. https://doi.org/10.1108/CDI-03-2017-0055 [Google Scholar] [Crossref]

6. Anderson, D. L. (2017). Organization development: The process of leading organizational change (4th ed.). SAGE Publications. [Google Scholar] [Crossref]

7. Anlesinya, A. (2020). Exploring human resource management practices in small and medium-sized enterprises in Ghana. Africa Journal of Management, 6(2), 132–153. https://doi.org/10.1080/23322373.2020.1724825 [Google Scholar] [Crossref]

8. Bailey, C., Madden, A., Alfes, K., & Fletcher, L. (2017). The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International Journal of Management Reviews, 19(1), 31–53. https://doi.org/10.1111/ijmr.12077 [Google Scholar] [Crossref]

9. Bakker, A. B., & de Vries, J. D. (2021). Job demands–resources theory and self-regulation: New explanations and remedies for job burnout. Anxiety, Stress, & Coping, 34(1), 1–21. https://doi.org/10.1080/10615806.2020.1797695 [Google Scholar] [Crossref]

10. Boateng, F., Anlesinya, A., & Osei-Kyei, R. (2023). The role of organisational culture and leadership in small business resilience in Ghana. Journal of Small Business and Enterprise Development, 30(4), 751–769. https://doi.org/10.1108/JSBED-07-2022-0304 [Google Scholar] [Crossref]

11. Buil, I., Martínez, E., & Matute, J. (2019). Transformational leadership and employee performance: The role of identification, engagement and proactive personality. International Journal of Hospitality Management, 77, 64–75. https://doi.org/10.1016/j.ijhm.2018.06.014 [Google Scholar] [Crossref]

12. Cooke, F. L., Wang, J., & Bartram, T. (2022). Can employee engagement be a buffer against crisis? Evidence from the hospitality industry during COVID-19. International Journal of Hospitality Management, 102, 103123. https://doi.org/10.1016/j.ijhm.2022.103123 [Google Scholar] [Crossref]

13. Cooper, D. R., & Schindler, P. S. (2014). Business research methods (12th ed.). McGraw-Hill Education. [Google Scholar] [Crossref]

14. Creswell, J. W. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications. [Google Scholar] [Crossref]

15. Gupta, M., & Sharma, P. (2021). Exploring employee engagement–a multidimensional approach. Human Resource Development International, 24(1), 3–20. https://doi.org/10.1080/13678868.2020.1828125 [Google Scholar] [Crossref]

16. Karatepe, O. M., Yavas, U., & Babakus, E. (2020). Work engagement and performance outcomes: A study with frontline service employees. International Journal of Contemporary Hospitality Management, 32(6), 1987–2005. https://doi.org/10.1108/IJCHM-02-2019-0134 [Google Scholar] [Crossref]

17. Kiruja, E. K., & Mukuru, E. (2018). Effect of employee engagement on organization performance in Kenya’s horticultural sector. International Journal of Business Administration, 9(2), 64–73. https://doi.org/10.5430/ijba.v9n2p64 [Google Scholar] [Crossref]

18. Krishnan, S. K., & Singh, M. (2020). High-performance work practices and employee outcomes: The mediating role of employee engagement. Employee Relations, 42(6), 1347–1364. https://doi.org/10.1108/ER-06-2019-0250 [Google Scholar] [Crossref]

19. Mensah, J. K. (2020). Talent management and employee outcomes: A psychological contract perspective. Public Organization Review, 20(2), 275–291. https://doi.org/10.1007/s11115-019-00447-3 [Google Scholar] [Crossref]

20. Mensah, J. K., & Amponsah-Tawiah, K. (2021). Human resource development practices and employee engagement: Empirical evidence from Ghana. Journal of African Business, 22(2), 257–275. https://doi.org/10.1080/15228916.2020.1742562 [Google Scholar] [Crossref]

21. Mwangi, W., & Omolo, J. (2017). Influence of employee engagement on change management in small and medium enterprises in Kenya. International Journal of Academic Research in Business and Social Sciences, 7(7), 1–15. https://doi.org/10.6007/IJARBSS/v7-i7/3078 [Google Scholar] [Crossref]

22. Saks, A. M. (2022). A critical review of employee engagement theory and research. International Journal of Human Resource Management, 33(4), 659–693. https://doi.org/10.1080/09585192.2019.1681533 [Google Scholar] [Crossref]

23. Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson Education. [Google Scholar] [Crossref]

24. Shuck, B., Bailey, C., & Rose, K. (2019). Untangling the predictive nomological validity of employee engagement: A composite indicator approach. Human Resource Development Quarterly, 30(4), 449–470. https://doi.org/10.1002/hrdq.21352 [Google Scholar] [Crossref]

25. Shuck, B., Reio, T. G., & Rocco, T. S. (2019). Employee engagement and performance: A systematic review and implications for practice. Human Resource Development Review, 18(3), 265–283. https://doi.org/10.1177/1534484319839314 [Google Scholar] [Crossref]

26. Yamane, T. (1973). Statistics: An introductory analysis (3rd ed.). Harper & Row. [Google Scholar] [Crossref]

• Is Strike Relevant in the Modern Era? Evidence from Indian Manufacturing, IT/Ites, FMCG, Electronics and Emerging Sectors
• A Qualitative Exploration of Work-Life Balance Among Private Universities Lecturers in Klang Valley
• Leadership Styles and Employee Motivation: Examining the Impact on Job Satisfaction and Turnover
• Human Resource Management, Organizational Culture, and Good Governance Practices: A Structural Equation Model on Service Orientation among Government-Owned and Controlled Corporation in Davao Region
• Cost of Silence: Exploring the Impact of Organisational Silence on Employee Engagement