1.1 Introduction
The effective management of employees and the organisation as whole is increasingly being recognized as a major determinant of success or failure in different business (Tung, 1984). In a business, the employees are considered as one of the important aspects which enable the company to achieve their organisational goal. The employees are the one who are considered as the valuable asset of an organisation. In return, the management of the organisation should be able to develop a management system that would help the company retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization.
Managing people in an organization or a working place is commonly the responsibilities of the human resources management of an organisation. It includes a variety of activities, decides on staffing needs such as how to fill needed positions within the budget, employing, orienting and training the working force and ensuring that these employees will perform well in order to contribute for the growth of the organisation. These managing people also are responsible for managing employees’ benefits and compensation, keeping employee records, legal issues, and relations with unions.
For this study, the researcher will attempt to determine the relationships of training development programs and employee satisfaction in Tesco. Furthermore, this dissertation also aims to identify whether training really enables the employee to be satisfied.
Background of the study
Training is an important part of any development program a company wishes to undertake. This complex task is within the responsibility of the human resource management department. Company training can either be formal or outsourced (Hughey and Mussnug, 1997). Training can be a formal process in a sense that the entire departments are devoted to conducting both initial and ongoing employee training programmes (Hughey and Mussnug, 1997). On the other hand, some also seek the help of outside consultants to conduct employee training sessions (Hughey and Mussnug, 1997). Of course, the motivation behind employee training differs from each company. Unfortunately, according to Hughey and Mussnug (1997) “Sadly, many companies conduct training simply for appearance’s sake” (p.52). The most frequent motivation is to comply with standard regulations rather than to actually enhance employee skills dedicatedly.
With that said, the true intent of training is perhaps missed by employers who implement and conduct training simply for appearance’s sake. Training should be conducted to create self-esteem for employees – to make them feel they are effective enough to handle the job. But because of the lack of data and lack of perspective on training of companies implementing it, is training really significant with the satisfaction of employees? This problem will be explored in this study, specifically on one of the most popular supermarket chain in the United Kingdom – Tesco.
Research Problem
There is still lack of evidence on the relationship between training development and employee satisfaction in organizations, specifically in the retail store industry. Tesco, being one of the few popular retail supermarket chains in the UK, have employed hundreds of employees over the years and most of those employees underwent training. However, there is lack of evidence or proof on whether their employees are actually satisfied prior the training, or even with the thought that they are being trained.
Research Questions
The main goal of this study is to identify the relationship of training development programs and employee satisfaction in Tesco. Specifically, the paper attempts to answer the following queries:
Ø Is training development positively significant with employee satisfaction?
Ø How do employees view training development?
Ø In the employees’ own views, what are the advantages and disadvantages of training development?
Ø Do employees prefer being trained or do they prefer finding out things with themselves?
Objectives of the Study
The study will try to achieve the following aims:
Ø To know which types of training strategies do Tesco use and determine if training development is positively significant with employee satisfaction.
Ø To recommend a sound conclusion based on the findings and literature review gathered.
2.1 Literature Review
2.1.1 Employee Training
People are the most important part of any organisation may it being profit or profit organisation. In line with this, human resources must be developed and improved from time to time to make them become an efficient asset of an organisation. Human resource development is the process of developing human potential through organisation development and personnel training. Typically, these activities encompass team building, executive coaching, diversity training, and most education and training programs, along with action research designed to uncover organisational issues (Brinkerhoff, 1991).
HRD has served the needs of organisations to provide human resources with up-to-date expertise. Advances in HRD models and processes have kept pace with the increasingly sophisticated information and production technologies that are prevalent in most, if not all, industries. Critical business issues, from new marketing strategies to innovations in production technology, are based on, among other factors, the performance capabilities of those expected to use these new work systems. As a factor integral to business success, employee expertise itself has been expanded through effective programs of employee development (Swanson & Torraco, 1999). One of the means of developing an employee is through training.
The primary impetus for training in organizations is change. Managers of privately owned companies must enhance their organizations’ profits and their stockholders’ returns by increasing sales or reducing operating costs or both. Government administrators and private-sector executives at all levels have come under increasing pressure to change and provide more effective and efficient services.
Today’s organizations must respond to demands for change while at the same time realizing that advances in technology and knowledge are rendering many traditional employee skills obsolete, while simultaneously developing needs for new ones. There have even been comic remarks that a college degree should be written in disappearing ink, since technical material has an ever-decreasing half-life (the time it takes for one-half of the material to become obsolete) (Leap & Crino, 1989). An analysis of corporate training programs sponsored by The Conference Board (Lusterman, 1985) cited one training director who remarked that since the half-life of an engineer is about five years, “a twenty-five-year-old graduate will have to be reeducated eight times in the course of a forty-year career” (Lusterman, 1985, p. 2).
Engineering is not the only profession experiencing a continuing need for re-education and retraining. New or present employees who draw their expertise from a knowledge base (accountants, computer technicians,
nurses) will have to keep pace with advances in this knowledge base during their careers. Change and the impact of technology have affected training needs for other levels of workers as well. Clerk-typists of old must now become word processor operators, using micro, mini, and mainframe computers in their daily work. In addition, they must master a constantly changing software base that may include electronic mail, word processing,
Training is an attempt to improve employee performance on a currently held job or one related to it. This usually will lead to changes in specific knowledge, skills, attitudes, or behaviours. These changes can result to long-term productivity. However, it often the case that companies only consider training for new hires. Many feel that training is just a way of introducing to the new hire the culture of the organization. It is also an opportunity to impart with them the lessons that senior employees had that helped them in furthering the growth of the company.
According to Allis (2003), the quality of the employees is determined by their development through training and education. In turn, quality employees are factors in defining the long-term stability and profitability of the company. It is a fact that the rigorous hiring process of many companies a ways of ensuring that they will only be hiring the best of the best.
However, this is not enough to say that the people they hire will be delivering effective performances. It might be true that they can see potential in those people and that is why they hired them. Nevertheless, these potentials cannot be put into use unless they are accordant with the company’s visions. This is the reason why training must take place.
Training of employees’ pertains to giving the employees the basic knowledge necessary for them to be able to perform their tasks. In addition, employee training will also enhance the inherent capacity of the employees. Development needs to be dealt with continuously enhancing employees’ abilities through training to match the changes in the business industry.
With employee training, the performance of every employee in the company will naturally be improved to its maximum level. In addition, various skills may be absorbed by the employee being trained, which in turn makes them more independent, resourceful and flexible. There are various reasons why employee training must take place. These reasons are closely linked to the company’s sustainability and profitability. According to Graham and Salas (2002), training is being used to facilitate education. In addition, training is also seen as a tool to retain employees, improve corporate culture and design incentive programs for employees (Graham & Salas, 2002).
Trainings are also being conducted so that the company will be able to create a pool of employees that can readily and adequately replace those who have left the company. Due to fats technological developments, employees must be continuously and/or regularly trained to be able to adapt to the developments that will affect the company. Training also motivates a team by allowing them to become more efficient. If a company is able to train and develop highly-competent employees then they will be able to fill positions needed for expansion (Allis, 2003 )
Since training can develop efficient employees and create rooms for expansion, this means that training can also result to lower employee turnover rates. According to a survey conducted by Sibson and Company (as cited in Cooper, 2000), high turnover rates resulted to 38 percent decrease in earnings and stock prices in 4 industries. This means that many companies are losing precious capital in attempting to replace the employees that left the company. So if training can reduce turnover rates, it means that companies will also be able to reduce costs of operation.
The results of training and development start a chain reaction. When the company is able to produce effective employees then their profitability will increase. When this happens, they will also be able to compensate their employees based on their contribution to the company’s growth. In turn, it will create a feeling of satisfaction that will motivate them to improve further their efficiency and then the cycle will once again begin (Parker, 2005).
With employee training, the performance of every employee in the company will naturally be improved to its maximum level. In addition, various skills may be absorbed by the employee being trained, which in turn makes them more independent, resourceful and flexible.
Employee training has centred on two issues: the need for a performance-based training and that of providing a learner-employer centred approach by trainers. Employees and employers are increasingly demanding change, choice, flexibility, and variety in the workplace; suggesting that with the de-layering of organizations and empowerment of individual employees, the future for both the organization and the individual lies not in promotion to successively higher levels of management, but rather in developing the value of the individual as human capital (Seidler, 1996). The value of human capital is enhanced by acquisition of higher performance potential such as new tasks, functions, and KSAPs (knowledge, skills, abilities, personal attributes) (McGregor, 1988).
Reasons for Training
As in any other training, there are many types, and reasons why companies train their employees. These varied trainings are designed to meet the specific requirements of a certain company and organizations. Thayer & Teachout (1995) noted that in the past 30 years, the science and practice of training has progressed dramatically. The practice of training, due to the combination of socio-cultural, technological, economic, and political pressures have all combined to force modern organizations to take a closer look at their human capital in general.
The old view of organizations that training should be separate and stand-alone event has become passé and led to a fully integrated and strategic component of the organization. The introduction of new training-related approaches, including action learning, just-in-time training, and mentoring, coaching, organizational learning, and managing skill portfolios are all currently being explored. According to Cannon-Bowers, Salas (2001), the modern organizations has to catch up with the changing workforce and the associated training needs that accompanies it.
According to McNamara (1999), the typical reasons for training employees would include the need for performance improvement as indicated by performance appraisals. Basically, a dip in performance of employees produces results which may be detrimental to the operation of the company. This could translate to loss in both profits and in production. Employee training is also used to develop employees and to test a new performance management system. An application of a new system definitely would require new furthermore, companies and organizations who will undergo changes train employees to be able to adapt to the changes adopted by the companies.
Training is also undertaken by employees on order to familiarize them to a particular topic or aspect. This is usually in the field of communication, computer skills, customer service, and diversity. Training also focuses on the aspects of ethic, human relations, safety and even sexual harassment. In training it is both the personal and the interpersonal skills that are being developed
3.1 Methodology
3.1 Methodology
Referring to the aim and objectives set for the dissertation, the author will now demonstrate the methodology of the means of obtaining data for analysis and coming to the conclusion to meet the aim and objectives. Though it does show ethnic concerns to those out there, interviews will be tied with the primary data research collection of this dissertation and the secondary research will be supported through the use of the research of other scholars as mentioned in the literature review.
3.1.1 Research Design
This study uses the correlational research method. The correlational kind of research method is used due to ethical problems with experiments. Moreover, it is also used due to practical problems with experiments. Moreover, inferring causality from correlation not actually impossible, but very difficult. This mode of study is widely applicable, cheap, and usually ethical. Nonetheless, there exist some “third variable” issues and measurement problems. The correlational research refers to studies in which the purpose is to discover relationships between variables through the use of correlational statistics (r). The square of a correlation coefficient yields the explained variance (r-squared). A correlational relationship between two variables is occasionally the result of an outside source, so we have to be careful and remember that correlation does not necessarily tell us about cause and effect. If a strong relationship is found between two variables, using an experimental approach can test causality.
The research described in this document is based on qualitative and quantitative method. The qualitative method permits a flexible and iterative approach, while the quantitative research method permits specification of dependent and independent variables and allows for longitudinal measures of subsequent performance of the research subject. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.
The value of qualitative research can best be understood by examining its characteristics. One of the primary advantages of qualitative research is that it is more open to the adjusting and refining of research ideas as an inquiry proceeds. Also, the researcher does not attempt to manipulate the research setting, as in an experimental study, but rather seeks to understand naturally occurring phenomena in their naturally occurring states. Inductive reasoning, as opposed to deductive reasoning, is common in qualitative research, along with content or holistic analysis in place of statistical analysis (Meyer et al, 1995).
On the other hand, quantitative method is compatible with the study because it allows the research problem to be conducted in a very specific and set terms (Cooper & Schindler, 1998). Besides, quantitative research plainly and distinctively specifies both the independent and the dependent variables under investigation.
It also follows resolutely the original set of research goals, arriving at more objective conclusions, testing hypothesis, determining the issues of causality and eliminates or minimises subjectivity of judgment (Kealey & Protheroe, 1996). Furthermore, this method allows for longitudinal measures of subsequent performance of research subjects (Matveev, 2002). Finally, it provides achieving high levels of reliability of gathered data due to i.e. controlled observations, laboratory experiments, mass surveys, or other form of research manipulations. This study should be based on surveys and statistical treatments, so basically the quantitative approach fits well with it.
3.1.2 Respondents of the Study
The main purpose of this case study is to identify relationships between employee training development program and employee satisfaction. Hence, the respondents of this study include 50 employees of the company. The employees are chosen because the respondents find them more reliable for this study. The true identity of the respondents is not revealed for confidential purposes.
After selecting the appropriate population, the researcher use inferential statistics in order to draw a concrete conclusion. Inferential statistics is used to be able to know a population’s attribution through a direct observation of the chosen population or simply the sample. This is because it is easier to observe a portion or a part than observe the whole population. However using a sample has also its own disadvantages; hence, there is a need to choose the most suitable sample from any population. It will also use Pearson correlation and standard deviation through SPSS.
3.1.3 Interview/Questionnaire Structure
The researcher design a questionnaire for the for the survey process. The primary aim of the questionnaire is to determine what the relationship of employee development program with employee satisfaction. This research will use a mixture of closed questions and more open comments in the questionnaire. A closed question is one that has pre-coded answers. The simplest is the dichotomous question to which the respondent must answer yes or no (Saunders et al, 2003).
Through closed questions, the researcher will be able to limit responses that are within the scope of this study. For example, the researcher intends to ask the respondents what they think of employee satisfaction in general. Using a multiple choice method, the answer of the respondents would be within the one of the limited expected answers of the researcher. Thus the researcher will design a closed question type to remain focused on the statement of the problem and on the main purpose of the study. However, the researcher will nevertheless extend the closed questions with the comments option to be able to gather qualitative data for this study.
In addition, closed questions will be used in the survey because the answers are easy to analyse and are straightforward as target respondents are mostly busy that they do not have enough time to give attention to open questions. Closed response questions save the respondent having to think of possible replies.
3.1.4 Data Collection and Analysis
The study use questionnaires and interviews to gather pertinent data. Moreover, the researcher also uses previous studies related to employee satisfaction and employee training. A structured questionnaire is employed by the researcher so as to save time and effort in the organization of the answers that will be gained. In the interview, the researcher hopes that those questions that are not tackled by the questionnaires will be gathered from the respondents using the survey questionnaire. The straightforward approach of the questionnaire guarantees that there would be a response generated by the researcher with regards to the questions asked.
In this research the utilization of secondary and primary data were used by the researcher. The secondary sources of data are collected from published articles from business journals, theses and related studies in human resource development, employee training and employee satisfaction. The primary source of data comes from a questionnaire and surveys conducted by the researcher. The primary data frequently gives the detailed definitions of terms and statistical units used in the survey. These are usually broken down into finer classifications. Herein, the researcher constructed a questionnaire and administered them to the respondents. The respondents were requested to answer the inquiries in the survey-questionnaire, each grading the statements using the Likert scale. In the Likert technique, a set of attitude statements are presented, where subjects of a study are asked to express agreement or disagreement using a five-point scale. The degree of agreement is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses.
3.1.5 Validation of the Instrument
For validation purposes, the researcher pre-tested a sample of the set survey questionnaires. This was done by conducting an initial survey to at least five respondents from the chosen respondents of the companies. After the respondents answered, the researchers then asked them to cite the parts of the questionnaire that needs improvement. The researcher even asked for suggestions and corrections from the respondents to ensure that the survey-questionnaire is effective. Automatically, these five respondents were not included as respondents for the study.
3.1.6 Administration of the Instrument
The researcher excluded the five respondents who initially used for the validation of the instrument. The researcher also tallies, score and tabulate all the responses in the provided interview questions. Moreover, the interview used is a structured interview. It is consisted of a list of specific questions and the interviewer does not deviate from the list or inject any extra remarks into the interview process. The interviewer may encourage the interviewee to clarify vague statements or to further elaborate on brief comments. Otherwise, the interviewer attempts to be objective and tries not to influence the interviewer’s statements. The interviewer does not share his/her own beliefs and opinions. The structured interview is mostly a “question and answer” session.
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