1
Explanation
Employee engagement is significant for Company P in order to ensure that:

The employees stay loyal and committed to the work and strive to achieve the objectives of Company P in the long run.
The employees may learn and grow more. So, it may lead to improved performance and productivity of the employees in Company P.
The employees may feel positive when they come for work. Employee engagement enables the employees to maintain a good relationship with their colleagues and keeps them nurtured at work.
The human resources management of the company contributes to employee engagement in the following ways:

The areas of improvement for the overall development of the employees may be focused on by the company in order to motivate the employees to participate in company activities.
The company may provide the opportunities to the employees to build good careers by providing them with higher education and taking care of their goals. So, it may motivate the employees to stay loyal and committed to the company.
The company can provide the employees with a healthy work environment wherein they can interact with each other and put forth their ideas.
The employees may be recognized and praised for valuable ideas that may lead to innovation in the company.
Sample Response
Employee involvement is essential for Company P because:

It may help in retaining the employees.
It may lead to better performance.
It may make the employees feel comfortable in the environment.
Employee involvement may be ensured by the company with the following steps:

Companies may aim at developing the skills of the employees.
The company may focus on the career development of the employees.
Interaction between the seniors and the subordinates may contribute to employee engagement.
The ideas provided by the employees for the growth of the company may be recognized.

2
Explanation
The personnel department of Company PB could take certain actions to encourage employee participation and involvement in the company. The actions could be as follows:

The employees could be trained by the company for better understanding and clarity in thoughts and actions. For instance, the company could provide the employees with financial training to make them learn about financial statements.
The department could provide incentives or bonuses to the employees on the basis of performance and efficiency in order to motivate the employees to work harder and participate more.
The superiors could encourage the employees by indulging them in conversation and recognizing their good work.
The company could acknowledge and appreciate the employees for the ideas and points put forward by them for improved working.
Sample Response
The steps that could be taken by the personnel department of Company PB are as follows:

Training could be given to employees to ensure cohesiveness.
Incentives could be provided to efficient employees.
Attention and consideration could be given to the employees' ideas.
Appreciation of the points kept forth by the employees could help in boosting employee participation.