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Home / Leadership, Management & Organizations / Productivity and Efficiency in the Manufacturing Sector: The Effect of Employee Engagement on Organizational Performance

Productivity and Efficiency in the Manufacturing Sector: The Effect of Employee Engagement on Organizational Performance

Abstract

In the manufacturing industry, employee engagement is crucial since it affects innovation, safety, and efficiency. Employee engagement remains challenging due to repetitive duties, stringent safety rules, and production pressures. Studies indicate engaged workers lead to a 21% increase in profitability. Research also shows productivity rises by 17% when employees are engaged. This issue is crucial since disengagement results in increased turnover, decreased productivity, and decreased profitability. This study is a systematic review of existing literature to map knowledge, pinpoint important themes, and draw attention to areas needing further investigation through databases including Google Scholar and ProQuest. Findings had workplace culture, leadership, shop floor management, and employee motivation as the most significant themes having a large impact on innovation, operational effectiveness, and employee retention. Employee motivation improves job happiness, shop floor management maximizes efficiency, leadership increases motivation, and workplace culture cultivates a sense of belonging. Future research can employ qualitative case studies on the impact of leadership on engagement and quantitative surveys to gauge engagement levels. Filling in these gaps can provide manufacturing companies with focused tactics to adopt for long-term success.

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Discipline Leadership, Management & Organizations Tags employee engagement, Featured Studies, leadership, manufacturing industry, organizational performance, productivity, shop floor management, workplace culture
  • Nirmaldeep Kaur
  • April, 2025

About Author

  • Nirmaldeep Kaur
    Nirmaldeep Kaur

    Nirmaldeep Kaur possesses solid academic and professional experience in leadership and business administration. She graduated from Lovely Professional University with a Master of Business Administrati...

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Picture of Nirmaldeep Kaur

Nirmaldeep Kaur

Nirmaldeep Kaur possesses solid academic and professional experience in leadership and business administration. She graduated from Lovely Professional University with a Master of Business Administration in finance, where she honed her skills in organizational leadership, strategic planning, and financial management, and further pursued a Master of Arts in leadership from Trinity Western Univeristy where she learned more about organizational development and ethical leadership. Nirmaldeep Kaur has worked as an assistant manager in the manufacturing industry where her duties included managing operations, resolving conflicts, and striking a balance between production demands and safety. Her research interests include ethical leadership, values-based decision-making, and the incorporation of financial concepts into company sustainability. She is especially curious about how moral leadership can promote a responsible corporate culture and improve company performance. Nirmaldeep Kaur hopes to bridge the gap between ethical leadership and financial sustainability by committing to lifelong learning and professional development. She believes emotional intelligence and rational decision-making are necessary for effective leadership, and through the application of her knowledge to actual business settings, she aims to contribute to both academia and industry.
Know More
Picture of Nirmaldeep Kaur

Nirmaldeep Kaur

Nirmaldeep Kaur possesses solid academic and professional experience in leadership and business administration. She graduated from Lovely Professional University with a Master of Business Administration in finance, where she honed her skills in organizational leadership, strategic planning, and financial management, and further pursued a Master of Arts in leadership from Trinity Western Univeristy where she learned more about organizational development and ethical leadership. Nirmaldeep Kaur has worked as an assistant manager in the manufacturing industry where her duties included managing operations, resolving conflicts, and striking a balance between production demands and safety. Her research interests include ethical leadership, values-based decision-making, and the incorporation of financial concepts into company sustainability. She is especially curious about how moral leadership can promote a responsible corporate culture and improve company performance. Nirmaldeep Kaur hopes to bridge the gap between ethical leadership and financial sustainability by committing to lifelong learning and professional development. She believes emotional intelligence and rational decision-making are necessary for effective leadership, and through the application of her knowledge to actual business settings, she aims to contribute to both academia and industry.
Know More

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