Conceptual Framework for the Study
4.4. Conceptual Frameworks for T&D Outcomes
Figure 4.1: Conceptual Framework for Employees’ T&D Outcomes (author’s secondary research findings)
4.4.2. Job Performance
Generally, there is a positive relationship between T&D and workplace performance (Drake- Knight, 2012). Employee development is not only an endeavour to enrich the quality of an employee‘s knowledge and skills, but also prepares them to undertake specific tasks to improve their job performance (Okoh, 2002; Oladimeji, 2011; Ji; Huang; Liu; Zhu, & Cai, 2012). For instance, ergonomic training aims to impart knowledge and skills in the efficient use of office facilities which can improve work flow, employees‘ effectiveness and overall job performance (Robertson & Huang, 2006). Workers‘ ability to control their working environment improves individual job performance. Clombo and Stanca (2008) indicated that while training has a positive impact on clerks, it has a significant but negative impact on executives. The differences between the impact of training on white and blue collar workers could be due to the fact that white collar workers‘ productivity-enhancing skills are generally acquired through advanced education, while on-the-job training is sufficient to enhance the knowledge and skills of blue collar workers. Manasa & Reddy (2009) and the Centre for Management Development (CMD) (2011) found that, with proper motivation, T&D can
result in productivity improving to as high as 90%. Akinwumi and Adeyanju (2011) established that level of education and training have a significant impact on teachers‘
performance in Nigeria. Training and development enhance other qualities in trainees, such as an improvement in profit making and service quality, the proper use of employees, improved employee safety and motivation, reduced resistance to change, reduced costs as result of a decrease in mistakes, and improved competence and job performance (Olaniyi, 2006 cited in Shadare, 2010). Lockers & Latham‘s (1990) goal setting theory argued that a consciously set goal that is clear and challenging can lead to increase in performance. This explains why T&D leads to improved performance. Trainees are aware that the aim of T&D is to acquire competencies to achieve an organisation‘s set goals. Social exchange theory is another motivational theory which encourages trainees to apply their knowledge on-the-job because of what they hope to gain in the end. Therefore, T&D should be a core strategic intent for organisations that want to grow and be productive. However, not every study has found a significant positive association between T&D and an increase in performance, Cooney, Terziovski, & Samson, (2002) indicated that employee training was found to have a small effect on employees‘ performance.
4.4.3. Job Satisfaction
When employees receive training they acquire skills and knowledge, which leads to reduced working hours as a result of increased efficiency. This enables them to do their jobs better, become more efficient, gain self-esteem and raises their morale, which lead to job satisfaction (Ryan, 2009; ILC, 2008; Forsyth, 2001; Ellinger et al., 2003 cited in Rowold, 2008). It has been established that T&D is positively and considerably associated with job satisfaction and that job satisfaction is also positively and significantly associated with workplace performance on most measures of performance (Felsteada, Gallieb, Greenc, & Zhoud, 2010, p. 1678; Schmidt, 2007; America, 2001, Donald, 2009). The two domains are mutually reinforcing; thus, as workers derive more satisfaction from working in a successful organisation, so their performance continues to improve (Georgellis & Lange, 2007). Studies have found that respondents who participated in training demonstrated higher degrees of understanding of job requirements and hence, job satisfaction (Georgesllis & Lange, 2007;
Glaveli & Karassavidou 2011; Spears & Parker, 2002, p. 14). Appropriate T&D makes employees happier in their jobs and they feel valued by their employers (Shelton, 2001, p.
44). On the other hand, according to Melymuka (2000 Cited in Schmidt, 2007), employee
dissatisfaction was partly attributed to their lack of fulfilment in their jobs, which was caused by the failure to receive the training they needed. Blum & Kaplan (2000 cited in Schmidt, 2007) observed that the opportunity to acquire new competences is crucial to job satisfaction.
Shields & Ward, (2001 cited in Schmidt, 2007) also found that financial benefits impact less on job satisfaction than the opportunity to train among nurses in the UK. Randstad North Nankervis, Compton and McCarthy (1999) were of the opinion that effective training would not only equip employees with most of the knowledge and skills needed to accomplish jobs, but also contribute to job satisfaction. A survey of 271 network professionals established that even perceived opportunities to learn new skills was sufficient to lead to improved job satisfaction (Blum & Kaplan, 2000 cited in Schmidt, 2007).
Furthermore, Siebern-Thomas‘s (2005 cited in Jones, Jones, Latreille, & Sloane, 2008) analysis of 13 countries in the European Community Household Panel between1994 and 2001, found that job satisfaction was inclined to be higher where there was access to workplace training. Molina and Ortega (2003) demonstrated that training can have a positive outcome on organisational performance by enhancing employee job satisfaction. Senge (1999) and Becker (1993) note that training leads to the accumulation of knowledge, expertise and skills and that this results in improved job performance; this enhances job satisfaction, as explained above, therefore these are therefore mutually reinforcing. Thus, management can improve employees‘ job satisfaction by increasing the rate of T&D activities that impact positively on their general skills acquisition (Jamshed, Halepota, &
Irani, 2010; Jones, Jones, Latreille, & Sloane, 2008). Job satisfaction, which is a product of T&D, is not only an important source of employees‘ happiness, but also an essential factor that may influence their intention to quit or not quit the organisation (Rowold, 2008).
4.4.4. Turnover Intention
Gone are the days when employees dedicated their entire working life to one organisation because of profound interest or a lack of better alternatives. Training and development has the potential to decrease staff turnover and turnover intentions both in the short and long term and encourages the desire to contribute to the collective effort to achieve the overall goals of the organisation (Nickels, 2009; Adenigi, 2010). Every employee wants to remain in an organisation where he/she will be more competent and remain valuable and competitive (Nduchiadi, 2011; Young, 2007). Training and development lays a solid foundation for new
employees and serves as a source of reinforcement for the old ones. Wagner (2000 cited in Shelton, 2001) notes that the rate of employees retention is higher in organisations that are keen to train their staff members. Furthermore, it has been shown that employees who receive fewer training opportunities than they are entitled to contemplate leaving the organisation (Pfeffer & Sutton, 2006 cited in Dysvik & Kuvaas, 2008). This is due to the fact that T&D helps an organisation develop a culture where everyone feels valued and is prepared to work together for a common purpose (Emerald, 2012). The results of the study by Pajo, Coetzer &
Guenole (2010, p. 300) suggest that employees who participate in T&D are less likely to quit the organisation.
However, the impact of T&D on intention to quit is not straight forward. In some instances, training has led to employees moving from one organisation to another. This is commonly experienced when the training is self-sponsored and/or when the skills acquired are of a more general nature. Sieben (2005) suggests that specific training reduces employees‘ intention to look for another job, but also points out that self-sponsored training undertaken during the employee‘s own time induces intention to leave. Furthermore, firm-financed training and firm-specific training minimise the rate of employees leaving the organisation (Hansson, 2008). This supports the standard human capital theory, which argues that investment in firm- specific skills reduces employee turnover, while investment in general skills could result in increased turnover or turnover intention (Flaherty, 2007, p.1). The transferability of general skills increases employees‘ mobility because such skills are more attractive to other organisations, particularly those in the same sector (Nickels, 2009 & Shelton, 2001). General training induces job mobility in the sense that the skills learnt can be useful to many organisations and can raise workers‘ productivity for other employers. On the other hand, specific skills bind the worker to the firm and serve as a barrier to exiting, as workers will lose a portion of the return on such skills if they move to another organisation (Jones et. al., 2008). Contrary to human capital theory, Koster, De Grip & Fouarge (2009) suggest that investment in general training does not induce the intention to leave the organisation. The effect of general training on intention to quit may be reduced by the positive effect of job satisfaction experienced by employees after the training intervention.
4.4.5. Organisational Commitment
Organisational commitment has three parts: affective, continuance and normative commitment. Affective commitment is described as passionate affection for, empathy with, and participation in the achievement of organisational objectives (Ugboro, 2006). Affective commitment occurs in an organisation when employees‘ values are aligned with those of the organisation. In such a case, it becomes normal for the employees to be emotionally attached to the organisation (Ugboro, 2006). Continuance commitment, on the other hand, is described as employees‘ keenness to continuing working in an organisation because they have served it for many years; they stand to lose should they leave the organisation (Ugboro, 2006).
Normative commitment can be described as a broad loyalty and feeling of duty to the organisation that results from an individual‘s belief that this is the moral and right thing to do.
The employee believes that they ought to be committed to the organisation that provides them with their daily bread, even if this requires personal sacrifices (Ugboro, 2006).
Well-trained employees are more competent and relish the opportunity to take control of their jobs. These positive outcomes lead to more committed employees who are likely to remain in the organisation (Owoyemi et al., 2011; Brum, 2007, p. 2). Reinforcement theory suggests that behaviour is controlled by its consequences (Jonck, 2001); an employee‘s decision to be more committed to the organisation after training could stem from past experience of employees being promoted or rewarded for improving their performance after their training encounter. Further, employees, who view T&D as an incentive have more binding commitment to achieving organisational goals and commit themselves to the organisation where they have career prospects (Silberman & Philips, 2006; Brum, 2007; Klein, 2001;
Smith, 2011). Young employees view T&D as very important, because they want the opportunity to grow and advance their careers. They equally want to make a tangible contribution to the growth of the organisation they work for. Oloyede (2005 cited in Shadare, 2010) argues that improving workers competences enhances productivity as well as commitment and motivation. Highly committed employees are more likely to be motivated and involved in activities that achieve organisational objectives. This offsets many direct and indirect costs which an organisation may bear as a result of employees leaving (Newman et al., 2011; Kuvaas & Dysvik, 2009; Brum, 2007).
The points made in the above paragraph support the social exchange theory which posits that individuals are likely to support issues that they stand to gain from. Employees are happy to work for and identify with an organisation that is prepared to invest money in their career advancement (Wilson, 2000 cited in Shelton, 2001). Companies with highly committed employees can be 200% more productive than low-commitment companies (Flanagan, 2010, citing Harvard Business Review, 2008). The same study found that 80% of employees who received T&D felt strongly committed to their organisation. Bulut and Culha (2010) found that training positively affected employee commitment, while Sunyoung & Hea (2008) demonstrated that HRD programmes like on-the-job training, mentoring, coaching and self- development significantly influence organisational commitment. Abbas and Yagoob, (2009) observed that a leadership development programme influences employees‘ attitude, commitment and trust in the organisation. Natarajan & Dinesh‘s (2011) study of 220 employees in India indicated that workers trained at younger age who stay longer in training, show more commitment than other employees. The empirical evidence has clearly demonstrated the importance of T&D to employees‘ organisational commitment; therefore, there is a need for organisations to engage in T&D as a means to enhance such commitment.