Organisational Practices and Employee Engagement: A Case of a Malaysia Semiconductor Manufacturing Company

Abstract

Employee engagement at the workplace has been a significant discussion among researchers and academicians. Most companies believe that employee engagement is the primary concern because employee engagement can positively impact their organisations. Many factors contributed to the employee engagement rate, coming from both the employer and the employees. One of the essential contributions to Malaysia's GDP is in the manufacturing sector. Therefore, to better understand this industry, the employee engagement of this sector needed to be studied. The purpose of this study is to examine the impact of organisational practices on employee engagement based on 76 sample respondents of a semiconductor manufacturing company based in Melaka, Malaysia. This paper uses a survey, SPSS and multiple regression analysis. The three dimensions of organisational practices, namely organisational culture, leadership style and compensation, explained 50.8 per cent of the variance in employee engagement. This study also evidences the significant relationship between organisational practices and employee engagement. This study contributes to the body of knowledge regarding the important influence of organisational practices on employee engagement in a semiconductor manufacturing company. The management may use the findings to enhance organisational practices that lead to more engaged employees.