Abstract:
This study investigated the impact of career planning, employee autonomy,
and manager recognition on employee engagement through the lens of the
social exchange theory. A survey of 120 employees in US small and medium
sized enterprises (SMEs) was conducted and a multiple regression model was
created to answer the research questions seeking to know if career planning,
employee autonomy, and manager recognition contributed to employee en gagement and if so, to what extent. The results supported the theoretical
model of social exchange as well as the hypothesized relationships. In other
words, data confirmed the existence of a statistically significant relationship
between the independent variables: career planning, employee autonomy, and
manager recognition, and the dependent variable, employee engagement.
Career planning was identified as a better contributor to engagement as
compared to the other two predictors. Manager recognition, while contribut ing less than career planning, was deemed a better contributor compared to
employee autonomy. These findings offer implications for research on social
exchange theory as an asset for the organization and suggest that in SMEs,
managers need to have career planning discussions with their direct reports.
These discussions set employees’ hopes of a promotion and increase their le vels of engagement and involvement. Recognizing employees on a regular ba sis for a job well-done increases their sense of achievement toward their
hoped promotion, thus helping to keep them continuously engaged
