Employee engagement and organizational performance: Insights from Bangalore Firms

Authors

  • Bibi Hajira International Institute of Business Studies, Bengaluru, Email: bibihajirasyeds@gmail.com
  • Sree Vidhya. A St. Francis College, Bengaluru Email: sreevidhyajan@gmail.com
  • Sharmila Fernandes St Claret College, Autonomous Bengaluru Email: sharmilafernandes84@gmail.com

Keywords:

Employee Engagement, Organizational Performance, Software Industry, Regression Analysis

Abstract

Employee engagement has emerged as a critical determinant of organizational performance, particularly in knowledge-intensive industries such as the software sector. This study examines the relationship between employee engagement and organizational performance among selected software companies in Bangalore, namely Tata Consultancy Services (TCS), ABB India, Cisco Systems, Adobe, and Oracle. Using a descriptive and analytical research design, primary data were collected through a structured questionnaire from 450 employees, of which 398 valid responses were retained for final analysis. The study employs descriptive statistics, Cronbach’s alpha, correlation, and regression analysis using SPSS software. The findings reveal a high level of employee engagement among respondents, with organizational commitment emerging as the strongest engagement dimension. Reliability analysis confirms strong internal consistency of the measurement scales. Correlation analysis indicates a strong and statistically significant positive relationship between employee engagement and organizational performance (r = 0.682, p < 0.01). Regression results further demonstrate that employee engagement significantly predicts organizational performance, explaining 37.3% of the variance. The study confirms that engaged employees contribute positively to productivity, efficiency, and overall organizational effectiveness. The findings highlight the strategic importance of fostering employee engagement to enhance performance and sustain competitiveness in Bangalore’s dynamic software industry.

Downloads

Download data is not yet available.

References

Albrecht, S. L., Breidahl, E., & Marty, A. (2021). Organizational resources, organizational engagement climate, and employee engagement. Human Resource Management, 60(1), 67–85.

Bakker, A. B., & Demerouti, E. (2023). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 28(3), 245–260.

Bakker, A. B., Albrecht, S. L., & Leiter, M. P. (2021). Key questions regarding work engagement. European Journal of Work and Organizational Psychology, 30(1), 1–14.

Carnevale, J. B., & Hatak, I. (2020). Employee adjustment and well-being in the era of COVID-19. Journal of Business Research, 116, 183–187.

Chen, Y., & Srivastava, P. (2023). Employee engagement and innovation performance. Journal of Business Research, 156, 113482.

Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2020). Business-unit-level relationship between employee satisfaction and performance. Journal of Applied Psychology, 105(8), 834–850.

Hoch, J. E., Bommer, W. H., Dulebohn, J. H., & Wu, D. (2020). Do ethical, authentic, and servant leadership explain variance above transformational leadership? Journal of Management, 46(3), 501–529.

Jiang, K., Hu, J., Liu, S., & Lepak, D. P. (2022). Understanding employee engagement from a systems perspective. Human Resource Management Review, 32(2), 100876.

Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692–724.

Kim, W., & Park, J. (2021). Examining structural relationships between work engagement, organizational commitment, and performance. International Journal of Human Resource Management, 32(6), 1311–1335.

Knight, C., Patterson, M., & Dawson, J. (2021). Building work engagement: A systematic review. Journal of Organizational Behavior, 42(2), 227–250.

Kumar, R., & Rao, P. (2021). Employee engagement in Indian IT organizations. Indian Journal of Industrial Relations, 56(4), 567–582.

Mukherjee, S., & Banerjee, R. (2024). Employee engagement and retention in Indian software firms. Asia Pacific Journal of Management, 41(1), 89–108.

Nair, S., & Sinha, A. (2022). Drivers of employee engagement in Indian organizations. Global Business Review, 23(5), 1123–1140.

Patil, R., & Deshpande, S. (2025). Engagement-driven performance in Bangalore-based firms. South Asian Journal of Management, 32(1), 45–63.

Rana, S., Ardichvili, A., & Tkachenko, O. (2022). A theoretical model of employee engagement. Human Resource Development Review, 21(2), 155–186.

Reddy, P., & Thomas, A. (2022). Inclusive leadership and employee engagement. Journal of Management Development, 41(4), 256–270.

Saks, A. M., & Gruman, J. A. (2021). Socialization resources theory and employee engagement. Career Development International, 26(2), 113–132.

Schaufeli, W. B., De Witte, H., & Desart, S. (2020). Manual: The Utrecht Work Engagement Scale. KU Leuven.

Singh, V., & Choudhary, N. (2024). Digital work intensity and employee engagement. International Journal of Productivity and Performance Management, 73(2), 410–428.

Verma, S., Sharma, R., & Sheth, J. (2023). Does digital transformation enhance employee engagement? Journal of Business Research, 149, 108–119.

Wang, B., Liu, Y., Qian, J., & Parker, S. K. (2023). Achieving effective remote working. Applied Psychology, 72(1), 1–33.

Yalabik, Z. Y., Popaitoon, P., Chowne, J. A., & Rayton, B. A. (2021). Work engagement as a mediator. International Journal of Human Resource Management, 32(3), 618–645.

Downloads

Published

08-03-2026

How to Cite

Hajira, B., Sree, V. A., & Fernandes, S. (2026). Employee engagement and organizational performance: Insights from Bangalore Firms. The International Tax Journal, 53(2), 748–756. Retrieved from https://internationaltaxjournal.online/index.php/itj/article/view/582

Issue

Section

Online Access