Structural Equation Modeling for Testing the Impact of Organization Communication Satisfaction on Employee Engagement

Communication satisfaction plays a very crucial role in achieving employee engagement in organizations. It becomes even more significant and relevant in the context of the recent global crisis wherein organization’s focus on employee engagement was high and was aimed towards employee retention and motivation. Using the second-generation analytical technique structural equation modeling, the present study examines the relationship between various components of organization communication satisfaction and various components of employee engagement. A modified version of the Downs and Hazen’s communication satisfaction questionnaire was administered on 235 personnel in the Information Technology (IT)/Information Technology Enabled Services (ITES) industry in India. The scale was tested for reliability and validity using confirmatory factor analysis. The results indicate that organization communication satisfaction has a positive impact on employee engagement. The study findings have strategic implications for organizations with regard to laying a greater emphasis on increasing communication satisfaction through various human resource interventions, both at macro and micro levels in the organization.