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Impact of Employee Engagement on Lean Manufacturing: An Empirical Study in Sri Lanka

Employees’ engagement has remained a major challenge in a lean culture. The objective of this study is to examine employees’ engagement on Lean Manufacturing System and how employee communication, employee development, co-employees support (Individual Factors) and image of the organization, rewards and recognition and leadership (Organization Factor) effect employees’ engagement of a true manufacturing company in Sri Lanka 300 employees were selected by using both cluster and random sampling techniques. Primary data was collected by using structured questionnaire. Cronbach’s alpha values was greater than 0.7. Findings reveal that employee communication, image of the organization and reward and recognition has significant relationship with employees’ engagement while employee’s development and leadership has negative relationship. Employee communication factor has higher impact on employees’ engagement in LM. Employee communication, employee development and image of the organization are significant to the model while co-employees’ support and reward and recognition do not have significant influence towards employees’ engagement in LM. Further, employee development and leadership of the organization negative influences employees’ engagement. Organizations should use new motivation methods to improve the standard work system within the system, training and development process as well as coaching feedback culture need to be further improved.