Recognizing employees as human resources is a must in order to remain competitive in today’s market. This can be accomplished by developing approaches that aim to help clients meet their needs. Most of these initiatives are centered on worker engagement. Developing nations rely on organizations to provide essential services and products, and the kinds of people they employ have a huge effect on how well they perform. In management studies, a company’s ability to efficiently utilize its assets is a critical factor that managers consider. Seven constructs under Employee Engagement and Organizational Performance were identified for this study. Relevant literatures were reviewed, and the research gap was identified. The main objectives of the study were to identify the factors that influence the performance of organizations in the service sector and to examine the impact of employee engagement on the performance of certain organizations in the service industry. Descriptive Research Design was applied and using a structured questionnaire, the required data were obtained from the employees of selected companies in service sector in Karnataka. The collected data were coded and using SPSS software, and the same data were analyzed. The end result showed that the constructs of Employee Engagement had an impact on the constructs of Organizational Performance. The findings of the study support the literature suggesting that employee engagement can have a significant impact on an organization’s performance. It also suggests that the constructs of Employee Engagement can affect various aspects of an organization’s operations such as recruitment and selection, compensation, career advancement etc.