The Study of Impact of Training on Employee Job ...

Jour of Adv Research in Dynamical & Control Systems, Vol. 10, 05-Special Issue, 2018

The Study of Impact of Training on Employee Job Satisfaction: A Case of Indian Pharmaceutical Sector Rajkumar Soni, Research Scholar, Department of Management Studies, Maulana Azad National Institute of Technology (MANIT), Bhopal, Madhya Pradesh, India. E-mail:[email protected] Dr. Bikrant Kesari, Assistant Professor, Department of Management Studies, MANIT, Bhopal India. E-mail:[email protected]

Extract--- In the modern epoch, organizations are facing numerous challenges due to the vigorous nature of the surroundings. One of the many challenges for an organization is to retain its employees, keep them satisfy and to accomplish success and linger in the competition. An efficient and effective training is the only way to augment the satisfaction, motivation, productivity and job commitment of workforce. The study examined the impact of training on the job satisfaction, work commitment and job performance. The study is based on the quantitative methodology. Data for study was collected through a well structured survey questionnaire. The questionnaire is espoused from a previous authenticated survey. The target population consists of employees working in the pharmaceutical companies operating in Bhopal, Madhya Pradesh, India. Simple random sampling is used for data collection from 180 employees. The outcomes of the study indicate a positive relationship between training and job satisfaction, work commitment and job performance. The research concludes with some valuable suggestions that the businesses need to appreciate the significance of training for maximizing the level of job satisfaction. Keywords--- Training Contents, Job Performance, Job Satisfaction, Organizational Effectiveness and Training Evaluation.

I. Introduction Many organizations these days are fail to understand the importance of training for employee job satisfaction and consequently face a lot of obscurity during their business operation. These organizations are internally puny thus unable to commence innovative products into the market to surpass their competitors (Aiken, Clarke, & Sloane, 2002). Employee is an asset for an organization and a crucial element in the process of accomplishing the mission and vision of an organization. Employees should meet the performance competency required by the organization to ensure the value of their work. To meet the competency standards of organization employees need appropriate training programmes to update them and allow them to perform up to the level of their bursting potential.

II. Indian Pharmaceutical Sector India pharmaceutical industry has always been a prominent industrial sector. “A Brief Report Pharmaceutical Industry in India,” published in April- August 2017, said that Indian pharmaceutical industry is a highly organized sector. The Indian pharmaceutical industry is highly scrappy with more than 20,000 registered units. It has expanded drastically in the last twenty years. The Pharmaceutical industry in India is an extremely fragmented market with severe price competition and government price control (Soni, R., and Kesari, B.; 2014). Indian pharmaceutical industry accounts for about 3.1 - 3.6 percent of the global pharmaceutical industry in value terms and 10% in terms of volume and is expected to spread out at a Compound Annual Growth Rate (CAGR) of 15.92% to US$ 55 billion by 2020 from US$ 20 billion in 2015. India contributes the second largest share of global pharmaceutical and biotech workforce. India has become the third largest global generic API (Active Pharmaceutical Ingredients) merchant market by 2016, with a 7.2% market contribution. Indian pharmaceutical industry accounts for the second largest number of ANDAs (Abbreviated New Drug Applications) and is the global leader in DMFs (Drug Master Files) applications with the US. Indian bio-economy, which includes biopharmaceuticals, bio- agriculture, bio- fuels, bio-services and IT services, was anticipated at US$ 35.1 billion in year 2016. Indian Pharmaceuticals sector has received cumulative FDI (Foreign Direct Investment) worth US$ 14.99 billion from April 2000 to June 2017. Indian drugs and surgical are exported to more than 200 countries in the

ISSN 1943-023X Received: 15 Mar 2018/Accepted: 20 Apr 2018

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world, with the US as the giant market. Indian pharmaceutical industry is the largest provider of generic medicines globally which accounts for 20% of global exports in terms of volume (Soni, R., and Kesari, B.; 2014)

III. Training Forgacs (2009) described training is as a deliberated activity aimed at improving employees skills and performance by helping them realize an requisite level of indulgent through the impartation of information. According to Armstrong (2000) training is an organized process to improve employee proficiencies so that they can accomplish its objectives. In the conventional approach to training, most organizations never used to believe in training. Training was considered very expensive and worthless. But from last two decade the scenario in the globalization and throat cutting competition is however changing. Organizations are realizing the importance of training as it has become the prominent and effective tool for skill development, job satisfaction, and retention of employees. Training is now considered as a satisfaction, commitment and retention tool than a cost (Torrington et al. 2004).

IV. Job Satisfaction According to Hedge & Borman (2012) job satisfaction is an employees’ feeling about his or her job and its associated aspects. It is the degree to which an employee acts enthusiastically or unenthusiastically towards his or her job (Saif & Saleh, 2013). Job satisfaction can be assessed based on the employees’ perception about the job in terms of the compensation, job performance and working environment, and other aspects related to the job (Black & Steers, 1994). In the words of Cranny et al. (1992) job satisfaction is the effective reactions of an employee towards his job by evaluating the desired outcomes with the apparent once. Job satisfaction is a significant component that comes from employee’s working experience and includes several factors such as the salary, nature of job, level of stress, working condition and atmosphere, employee cooperation, superiors and subordinates, and workload (Bakotic & Babic, 2013). The implication of job satisfaction obtains a vital factor that may influence a number of key organizational outcomes (Rae, 2011). For instance, high degree of job satisfaction has been linked with increased job performance (Karatepe, 2012). Certain previous studies suggested that high degree of job satisfaction is beneficial for employers because it is assumed to be necessary for increasing their efficiency, enduring the creativity, and ensuring their obligation towards the organization (Syptak, Marsland, & Ulmer, 1999).

V. Job Performance Acton and Golden, (2002) suggested that training facilitators revise the skills, knowledge and attitudes and lead to augment employee commitment, well- being, and sense of affinity, thus directly intensifying the organization’s competitiveness. In order to attain a high-performance work culture that ensured employee’s assurance and involvement at work, the management should initiate with behavior oriented steps (Kumar, 2006). Job performance is associated with the willingness and sincerity to seek and achieve new facets of the job that increase the individual’s efficiency (Sinha, 2004). Job performance in a major concern for every organization as the performance improvement is a super target amongst the organization’s objectives. Numerous researchers underlined that job performance has to be well-thought-out as a multi-dimensional conception since the most basic level can make a peculiarity between a process aspect and conclusion aspect of performance (Campbell et al., 1993; Roe, 1999). According to Dessler, (2002) an employee's work performance details used as a basis for decision-making on the compensation policy. Job Performance evaluation is a systematic measurement of the employee by the superiors. Simamora (2002) revealed that job performance evaluation is a functional tool not just for assessing the work, but also to train and motivate the employees.

VI. Training Commitment Most of the training programs are accessible to meet the prospect of the employee’s needs in the place of work. The employees try to implement the techniques which they learned from the training programs in their work tasks (Saiyadain, 1994). Moreover, the employee’s insights reflected of their assurance toward the work commitment that provided by the management. The employees obtain the input by learned and shared from other participants’ knowledge in most training programs (Jenks, et al., 2007; David et al., 2005; Wagel, 1977). According to Shukor (1991) the organization and employees fulfill the need of each other. The organization requires skill, knowledge, effort, and proficiency while workers depend on work and benefits provided by the organization. The organization need to give support, training


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programme and time frame to complete the task and motivate employees in order to provide a higher level of commitment in their work. Conrad (1985) suggested that the level of involvement and commitment to the work done by the employee is depends on the degree to which employees are satisfied with the facilities provided by organization.

VII. Training Needs Assessment (TNA) Training Needs Assessment (TNA) is a crucial evaluation for employees to ensure they can appraise their performance precisely. A proficient Training Needs Assessment (TNA) is a vital step to design a training program that influences the overall usefulness of training programs (Zemke, 1994; Goldstein and Ford, 2002). Moreover, an efficient TNA can lead and serve as a basis for the design, development, deliverance and valuation of the training program. Wagonhurst (2002) suggested that the design and development of the training programs are organized endeavors to assess the training needs for the organization, recognize the job requirements to be trained and categorize who needs training and the sort of training to be delivered should outcome in more efficient and effective training programme.

VIII. Training Contents and Delivery Approaches According to Wexley and Latham, (2002) the need for skills and task distinctiveness in determining the most competent training delivery approaches must be highlighted. All the training delivery approaches are accomplished and anticipated to communicate a meticulous skills, knowledge, and task information to training participants. AiYee et al. (2007) studied and suggested the significance of, application, and implications for training in organizations by identifying the key determinants of success of training programme. In the current corporate atmosphere the prevalence and intensity of training are increasing as workers move to a superior employment level (Pischke, 2001).

IX. Training Evaluation Training Evaluation is a principal decision that must be made when reviewing the efficacy of training method. The training evaluation is a very complex task (Arthur and Bennett, 2003; Easterby- Smith, 1986) while the most imperative activity during the training practice is the final rational phase and organizations should assess their training efforts analytically. Tannenbaum and Woods, (1992), Goldstein, (1993) investigated that the key objective of training evaluation is to examine that the training has actually delivered was intended and to improve the skills and knowledge for future use. An evaluation process can be segmented into two measures: (1) to determine the degree of accomplishment and (2) using experimental and non-experimental design to determine the changes that come during the preparation and evaluation of teaching and learning process. At the end of training programme, the actual work performance must be matched with the Standards of training evaluation parameters (Goldstein, 1986). Training evaluation ultimately provides imperative information related to positive effect on the changes in the targeted trainees (Bennett, 2003). According to Kirkpatrick (1996), Training evaluation is extremely important for improving the training program for future prospect, in determining the need assessment and to create a datapool that can assist HR management in decision making process.

X. Work Commitment According to Spector (2000), work Commitment involves attachment of people to work. Work Commitment is a variable that reveals the degree of association owned by an individual for a specific assignment within the organization. Employee’s work commitment can increase their motivation in learning perspectives and explain dispositional persuades on an employee’s motivation to improved work through learning (Naquin and Holton, 2002). Employee’s work commitment received a immense consideration and become an imperative issue in training programmes (Facteau et al., 1995; Tannenbaum et al., 1991) as it is linked with the employees’ performance, working behaviors and other job related aspects (Dordevic, 2004). Work Commitment can have both positive and negative characteristic for employees and the organization. The current study focused on the moral aspect as the indicator of commitment.


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XI. Research Objectives Primary Objective • •

To examine the impact of training on job satisfaction. To examine the impact of training on employee’s work commitment, and job performance.

Secondary Objective •

To establish the degree of impact on every aspect of training on the employee’s job satisfaction, work commitment, and performance.

XII. Conceptual Framework Independent Variable    

Dependent Variable Work Commitment

Training Commitment Training Needs Assessment Training Contents & Deliver Approaches Training Evaluation

H1 H2

H3

Job Satisfaction

Job Performance

Figure 1: Conceptual Framework A conceptual framework is projected in this study based on preceding academic reviews, which persuades a systematic analysis of organizational development by investigating its effect towards training needs assessment, training commitment, training contents and delivery approaches, training assessment and employee’s work commitment, job satisfaction and job performance. The conceptual framework demonstrates the effects of training needs assessment, training commitment, training contents and delivery approaches, training evaluation on employee’s work commitment, job satisfaction and job performance. Several previous studies have considered training needs assessment, training commitment, training contents and delivery approaches, and training evaluation as aspects that have a strong correlation with an employee’s work commitment, job satisfaction and job performance. The independent variables of this study’s conceptual framework include training needs assessment, training commitment, training contents and delivery approaches, training evaluation, while the dependent variable is an employee’s work commitment, job satisfaction and job performance. According to Billikopf (2003), and Lerman et al. (1999) the independent variables (training needs assessment (TNA); training commitment; training contents and delivery approaches; and training evaluation) are the factors that have a relationship with the dependent variables (employee’s work commitment, job satisfaction and job performance), which are commonly considered as the ultimate outcome of the human Resource Development (HRD) activities. Hypotheses H1: Training commitment significantly affects the employee’s work commitment, job satisfaction and performance. H2: Training needs assessment significantly affects the employee’s work commitment, job satisfaction and performance. H3: Training contents and delivery approach significantly affect an employee’s work commitment, job satisfaction and performance. H4: Training evaluation significantly affects the employee’s work commitment, job satisfaction and performance.

XIII. Research Methodology The study is based on primary data and secondary data. Secondary data was collected from various sources and the primary data was collected through structured questionnaire. The questionnaire has been prepared according to the objective of the study. Before preparing the questionnaire we have collected little information from the company web sites, newspapers, periodicals and different textbooks of Human Resource Management. Here the sample size is


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180 and the research has been conducted in Bhopal, Madhya Pradesh (India). In this study simple stratified random sampling method has been used to select respondents. However the collected data have been summarized by the tabulation sheets according to the objective of the study. The summarized data have been analyzed by using statistical tools and techniques. Total 180 respondents were selected for the study. Data collected from the questionnaires were analyzed using SPSS version 20.0 software. The techniques used in studying the data included descriptive statistics, correlation analysis, regression analysis and reliability analysis.

XIV. Results and Discussion Table 1: Respondents’ Profile Number

Percentage

180

100%

100 80

55.6% 44.4%

Degree/Professional certificate

102

56.7%

Post Graduate

78

43.3%

Executives

98

54.4%

Professionals Managers

46 36

25.6% 20.0%

Less than 2 years

66

36.7%

2 – 5 years

60

33.3%

6 – 10 years

54

30.0%

Valid survey cases (A) Gender Male Female (B) Education Level

(C) Occupation

(D) Years of service on the job (participant)

The summary of the respondents is presented in table 1. The samples comprised of 55.6 percent of males and 44.4 percent of females. One hundred percent of the employees possess tertiary level qualifications. The highest was a degree / professional certificate level, which consisted 56.7 percent in less than two years experience (36.7 percent), and followed by postgraduate degree were 43.3 percent with less than 6 -10 years experience (30 percent). Table 2: Reliability of Variables Variables Employees’ Work Commitment Job Satisfaction Job Performance Training Commitment Training Needs Assessment

Number of items 5 8 4 4 4

Reliability (Cronbach alpha) 94 0.80 0.94 0.91 0.94

Training Contents and Delivery Approaches

7

0.88

Training Evaluation

4

0.91

n= 180

The reliability of the instrument was tested by Cronbach’s Alpha measurements. The reliability coefficient (Alpha) of training dimensions effects on the employee’s job satisfaction, work commitment, and performance is given in table 2. The Cronbach’s alpha values of all variables are above 0.80, which is considered a safe indicator of internal reliability. The Cronbach’s alpha value of employee’s job performance and work commitment were 0.94,


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training evaluation and training commitment were 0.91, respectively, training contents and delivery approaches had an alpha value of 0.88, and training needs assessment was 0.94. Table 3: Correlations Matrix of Variables Variables Training Commitment Training Needs Assessment Training Contents and Delivery Approaches Training Evaluation Employee’s Work Commitment Job Satisfaction Job Performance

1 0.577** 0.682** 0.593** 0.739** 0.736**

2

3

4

0.695** 0.485** 0.541** 0.600** 0.729**

0.691** 0.601** 0.590** 0.623**

0595** 0.567** 0.591**

0.560**

** p