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THE EFFECT OF TRAINING AND DEVELOPMENT ON EMPLOYEE


PERFORMANCE IN PRIVATE COMPANY, MALAYSIA

Research · November 2017


DOI: 10.13140/RG.2.2.33047.68005

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International Journal of Education, Learning and Training
Vol. 2 (No.2), November, 2017
ISSN: 2289-6694
DOI: 24924/ijelt/2017.04/v2.iss2/42.56 www.ftms.edu.my/journals/index.php/journals/ijelt
This work is licensed under a
Creative Commons Attribution 4.0 International License.

Research Paper

THE EFFECT OF TRAINING AND DEVELOPMENT ON


EMPLOYEE PERFORMANCE IN PRIVATE COMPANY, MALAYSIA

Sumaiya Shafiq
BA(Hons) Human Resource Management Student
Ashcroft International Business School
Anglia Ruskin University, UK
Sumaiya.shfq@yahoo.com

Sahibzada Muhammad Hamza


Senior Lecturer
School of Accounting and Business Management
FTMS College, Malaysia
sahibzadahamza6@gmail.com

ABSTRACT
The major assets in the organization is the employee, they have a role to play towards an
organizational success. The success of the organizational cannot be underestimating by the
organizations. Because of this we need to care about their learning to increase the employee
performance. This study aimed to investigate the effect of training and development on employee
performance. The questionnaire was formed based on the empirical literature. This research engaged
convenience sampling technique for selecting the respondents. The independent variable that has
been use in this research is on job training, off job training, job enrichment and job rotation. The
dependent variable has been use in this research is employee performance. A quantitative research
approach of the data collection was adopted using a Likert – Scale questionnaire including 25
questions was formed and the number of respondents is 105 employees at Private Company in
Malaysia. The research employed descriptive analysis, correlation analysis and regression analysis.
This data was collected by this research and was analyzed by SPSS. The result shows that all
independent variables have an insignificant impact on employee performance except Job enrichment
which is reported to have a significant impact on the dependent variable. Future researchers are
recommended to focused on other business sectors- and moreover explore the employee performance
based on the training and development..

Key words: Employee Performance, On Job Training, Off the Job training, Job Enrichment and Job
Rotation

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1.0 INTRODUCTION
This paper aims to investigate the effect of training and development on job
performance in Private Company, Malaysia. The main role of training and development in
the efficiency of the organizations is to experiences the worker in work place. Greatest
organisations are mindful of this necessity and invest strength and other sources in the
training and development. Different journalists have different methods towards to defining
the job satisfaction. According to Hoppock (1935) job satisfaction is a combination of the
psychological and the environmental conditions that can cause an individual truthfully say
that Hoppock satisfied with their job (Hoppock, 1935 as cited by Aziri, 2011).

Notable number of researches have been done to investigate the topic in different
contexts globally; Lian et.al, (2013) did a research on the hotel industry of Malaysia.
Vasudevan, (2014) did a research on the public sector of Malaysia. Hau and Omar (2015) did
a research on the Hoteling sector of Terengganu Malaysia. Liao, (2010), did a research in
public sector at Taiwan. Terera & Ngirande, (2014) did a research on the private sector of
South Africa. Chepkosgey et.al, (2015) did a research on the tea factory of Trans-Nzoia
Country.

Seeing to the current training and development issues, the effect of training and
development on employee performance is an unsettled issue and has been deliberated in
many empirical studies such as discussed by Noe, (2010) that states today, that view has
changed. Report a better financial performance than their competitors that do not engage their
team in training and development. To meet the competitive challenges, training and
development accommodates the company to remain competitive in a high pace business
environment. In training and development budgets, the current declining economic times
have called resulted in cuts. Moreover, in order to help workers strengthen or increase their
skills the organisation should implemented the effective training, so company needs to
increase their capabilities by making new products, create new ideas and give quality services
in the organisation.

Research Objectives

 To investigate the effect of on the job training on employee performance in Private


Company.
 To investigate the effect of off the job training on employee performance in Private
Company.
 To investigate the effect of Job Enrichment on employee performance in Private
Company.
 To investigate the effects of Job Rotation on employee performance in Private
Company.

2. LITERATURE REVIEW

William Fitzgerald (1992) defines that training as an achievement of the


understanding and skill for present the tasks. Next, Goldstein & Ford, (2002) describe
training as a systematic method for learning and development to increase person, team and
the organizational efficiency. It also support the opinions of William Fitzgerald, (1992)
while Aguinis & Kraiger, (2009) describes the significance of training by stating that it
increases the employees job performance and bring other positive changes such as acquisition
of new talents. Gansberghe, (2003) defines development as a long-term process designed for
enhance the potential and the effectiveness.

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According to past researchers, Locke and Latham (2002) goals have a widespread
influence on the worker behaviour and employee performance in the organizations and
management practice, this study as sited by Lunenburg (2011). Almost all modern
organizations have some form of goal setting operation. Such a program management by
objectives (MBO), from management information systems (MIS) and high-performance work
practices benchmark, a target mark, and systems thinking and strategic design which includes
the development of the specific goals. (Lunenburg, 2011).
The performance they achieve from that effort and the rewards they receive from their
effort and performance based on the idea that people believe there are relationship among the
hard work that they contribute at work place that a cognitive process theory of motivation is
defined as expectancy theory (Parijat & Bagga, 2014). In other words, to desired rewards that
has a strong effort for a better presentation and that better presentation will make a path to the
people that will be motivated if they believe it (Parijat & Bagga, 2014).
According the numerous study Neisser, (1967) identifies the main aspects of the
cognitive theory has involve in the interaction among mental components and the info that is
the procedure of this complex network as cited by Clint, (1993). According to McEntire
(1992) People learn actively to make cognitive structures that can define to their own models
and the environmental. Therefore, cognitive psychologists do not obey to a specific set of
rules or methodologies in their investigation as site Clint, (1993). Cognitivist,such as
behaviourism, which emphasized the role of the environment. (Ertmer & Newby, 2013).
By environmental influences, in the social learning by indirect, representative and
self-regulatory processes, the social learning theory outlined in this paper places the special
emphasis in which receive the relatively little attention on the essential roles even in most
current theories of learning. For the way one views the causes of human behavior, these
differences in governing processes carry certain suggestions (Bandura, 1971).
According to Nassazi, (2013) did a research on effect of the training on employee
performance. The aim of this learning is to know the impact training on the employee
performance by use the telecommunication sector at Uganda. The total questions is 18 and
have 120 of respondents. Second, According to Otoo and Eric, (2012) did a research on the
impact of training and development over employee performance on Accra Polytechnic. The
aim of this investigation to know that the training and development give am impact to
employee performance at Accra Polytechnic, the sample data has collected is 50 of the senior
employee. Third, According to Tahir et.al, (2014) did an investigation the effect of training
and development over the employee performance and the productivity. The aim of this
research is to study that training and development give an effect to employee performance
and productivity they use 80 of the questionnaire. Forth, Laing, (2009) did a research on
effect of the training and development over employee performance at the public sector. The
aim of this study is to know the effect of the training and development over the public sector
in the organizations by a case study of Ghana Ports and Harbors Authority, they also do a
personal interviews.
According to Ramya, (2016) Most of the previous studies provides the evidence that
there is a strong positive relationship between human resource management practices and
organizational performance. Next, According to Falola et.al, (2014) Training and
development is indispensable strategic tool for enhancing employee performance and
organizations keep increasing training budget on yearly basis with believe that it will earn
them competitive edge and the results show that strong relationship exists between training
and development, employees’ performance.

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On The Job
Training

Off The Job EMPLOYEES


Training PERFORMANCE

Job Enrichment

Job Rotation

Figure 1: Conceptual Framework

According to past researcher Ameeq and Hanif, (2013) they said that the on the job
training have a positive effect to the employee performance while the employee come to
duties, this research sited by Said et.al, (2016). According to Tukunimulongo, (2016), also
said that the on the job plays a big role in improving the employee performance and
productivity. According to past researcher Barzegar and Farjad, (2011).
H1: There is a positive significant effect of on the job training and employee performance.
According to past researcher Nassazi, (2013) off the job training more effective
because workers are away from work and their can focus entirely on training. Next,
According to Kanwal, (2015), agree that the off the job training have a positive impact to the
employee performance and employee productivity. According to Ngari, (2015), also agree
that the off the job has strong relationship to employee performance.
H2: There is a positive significant impact of off the job training and employee performance.
Zareen and Razzaq, (2013) states the function of job enrichment is to motivate the
employees by give the employees opportunities to maximise their abilities and make the
performance and productivity increase among the employees and it will gives positive
impacts to organizational environment and make the organization easy to achieve the goal.
Moreover, there is positive correlation among employees performance based on Salau et.al,
(2014).
H3: There is a positive significant impact of job enrichment and employee performance.
Zin, et.al (2013) defines that the job rotation has a positive relationship in career
development. Koontz and Mills (1984) supports this statements when they said that job
rotation is the top type in training and it was create to ease the employee with the specific
information about the positions that might available for the employee as site Oparanma, A.
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and Nwaeke, (2015). Next, Khan et al (2014) describes job rotation as the methods that needs
to be followed by the companies in order to enhance the performance of the employees and
employees might be more committed to their work and there is a positive connection among
job rotation and the employee’s performance based on Khan et al (2014).
H4: There is a positive significant impact of job rotation and employee performance.

3. RESEARCH DESIGN AND METHODOLOGY


This research tends to engage explanatory quantitative research. Further, primary data
was collected for this research since no data set is online available for the studied context.
The research population for this study is all the 600 employees of Private Malaysia while a
sample size of 100 employees were selected using convenience sampling technique. Likert –
Scale Questionnaire was used as a research tool which was given manually to the employees
of the Private Malaysia to ensure the reliability of the source of collected data. Special
consideration was given to the ethical consideration while collecting the data for this
research. Lastly, descriptive, correlation and regression analysis were conducted to build the
nexus amongst the cluster of dependent and independent variables.

4. RESULT AND DISCUSSION

4.1 Normality test


Table 1: Normality test
Descriptive Statistics

N Skewness Kurtosis

Statistic Statistic Std. Statistic Std. Error


Error

Q1 105 .728 .236 .996 .467

Q2 105 .832 .236 2.375 .467

Q3 105 1.141 .236 4.264 .467

Q4 105 1.147 .236 4.693 .467

Q5 105 .690 .236 1.496 .467

Q6 105 1.304 .236 3.669 .467

Q7 105 1.395 .236 5.649 .467

Q8 105 .089 .236 -.541 .467

Q9 105 1.173 .236 2.627 .467

Q10 105 1.137 .236 2.426 .467

Q11 105 .319 .236 .054 .467

Q12 105 .638 .236 1.085 .467

Q13 105 .802 .236 .868 .467

Q14 105 1.195 .236 2.832 .467

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Q15 105 1.294 .236 2.394 .467

Q16 105 1.320 .236 4.184 .467

Q17 105 .354 .236 1.086 .467

Q18 105 .445 .236 .342 .467

Q19 105 .728 .236 .996 .467

Q20 105 1.122 .236 2.500 .467

Q21 105 .554 .236 .843 .467

Q22 105 .822 .236 1.390 .467

Q23 105 .790 .236 1.168 .467

Q24 105 1.212 .236 3.717 .467

Q25 105 1.229 .236 4.886 .467

Valid N 105
(list wise)

According on the Table 1, the skewness of this data set is seen between 0.70 to - 0.80,
representing that the skewness of this data set is inacceptable range falling under the
suggested value. However the kurtosis indicated twelve questions (Q3, Q4, Q6, Q7, Q9, Q10,
Q14, Q15, Q16, Q20, Q24, and Q25) greater than -1.00, but suggesting the rest is on an okay
range.

4.2 Reliability Test


Table 2: Reliability
Variable No of items Cronbach's Alpha

Overall: 25 .944

On the job: 5 .876

Off the job: 5 .797

Employee performance: 5 .741

Job Enrichment: 5 .813

Job Rotation: 5 .845

Cronbach’s alpha coefficient is widely used to measure reliability, if the Cronbach’s


alpha value is 0.1 - 0.4 is weak if the value is 0.4 - 0.6 is moderate and if the value is between
0.6 - 0.9 is strong; it ensures the reliability of the internal consistency of the questionnaire
(Ringim, et al., 2012). According to this table all variable have a higher reliability.

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4.3 Descriptive Statistics

Table 3: Descriptive Statistics


Descriptive Statistics

N Mean Std. Deviation

On The Job Training 105 1.823 .5395

Off The Job Training 105 1.850 .5304

Employee 105 1.918 .5179


Performance

Job Enrichment 105 1.886 .5150

Job Rotation 105 1.912 .5441

Valid N (list wise) 105

According to the Table 3, the average mean for on the job training is 1.823 and the
standard deviation is 0.5395. Meanwhile the average mean for off the job training is 1.850
and the standard deviation is 0.5304. The result indicates that on the job and off the job
factors are not influential drivers in determining employee performance of the employees
working in Private Malaysia. Similarly, the average mean for Job Enrichment is 1.886 and
the standard deviation is 0.5150 while the average mean value for job rotation is 1.912 and
the standard deviation is 0.5441. The result indicates that Job enrichment and Job rotation
are not key players in determining employee performance of the employees working in
Private Malaysia. Lastly, the employee performance of the selected sample is reported to be
below average with an average mean of 1.918 with a standard deviation of .5179.

4.4 Correlation Analysis

Table 5: Correlation
Correlations

Emplo On The Job Off The Job Job Job


yee Training Training Enrichment Rotatio
Perfor n
mance

Employee Pearson 1 .575** .631** .748** .655**


Performance Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 105 105 105 105 105

On The Job Pearson .575** 1 .723** .648** .577**


Training Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 105 105 105 105 105

Off The Job Pearson .631** .723** 1 .736** .695**


Training Correlation

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Sig. (2-tailed) .000 .000 .000 .000

N 105 105 105 105 105

Job Pearson .748** .648** .736** 1 .739**


Enrichment Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 105 105 105 105 105

Job Rotation Pearson .655** .577** .695** .739** 1


Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 105 105 105 105 105

**. Correlation is significant at the 0.01 level (2-tailed).

According to table 5, on the job training is positively correlated with a dependent


variable employee performance and the relationship between variables is moderate with a
value of 0.575. On the job training is significant with a value of 0.000 which is lower than
0.01. (Higgins, 2005). Hence on the job training is found to have positive significant
relationship with employee performance. Likewise, off the job training is positively
correlated with a dependent variable employee performance and the relationship between
variables is strong with a value 0.631. Off the job training is significant with value of 0.000
which is lower than 0.01. (Beaumont, R., 2012.). Hence off the job training is found to have
positive significant relationship with employee performance. Furthermore, Job enrichment is
positively correlated with dependent variable employee performance and have relationship
between variables in strong with a value of 0.748. Job enrichment is significant with a value
of 0.000 which is lower than 0.01. (Higgins, 2005). Hereafter job enrichment is found to have
positive significant relationship with employee performance. Moreover, job rotation also
have positively correlated with a dependent variable employee performance and the
relationship between variables is strong with a value of 0.655. Job rotation is significant value
of 0.000 which is lower than 0.01. (Beaumont, R., 2012.). Hence job rotation is found to have
positive significant relationship with employee performance.

4.5 Regression
Table 6: Regression.
Model Summaryb
Model R R Adjust Std. Change Statistics Durbin-
Squ ed R Error Watson
R F df1 df2 Sig. F
are Square of the
Square Cha Chan
Estima
Chang nge ge
te
e
1 .76 .592 .575 .3375 .592 36.2 4 100 .000 1.372
9a 42

a. Predictors: (Constant), Job Rotation, On The Job Training, Job Enrichment, Off The Job Training

b. Dependent Variable: Employee Performance

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According to table 6, R square is 0.592 which shows that 59.2% of the dependent
variable is being explained by independent variables. Adjusted r square is 0.575 which shows
that a model is not a good fit model as the value is less than 0.60. F significance value is
0.000 which shows that overall model is significant. Durbin-Watson value is 1.372 which
shows there is an auto correlation among the selected respondents chosen for this study since
the value didn’t falls in a range of 1.5 -2.5 (Campbell, D. and Campbell, S., 2008).

Table 7: Regression Coefficients


Coefficients

Model Unstandardized Standard t Sig. Collinearity


Coefficients ized Statistics
Coefficie
nts

B Std. Beta Toler VIF


Error ance

1 (Constant) .346 .137 2.522 .013

On The Job .096 .092 .100 1.043 .299 .447 2.236


Training

Off The Job .060 .109 .062 .554 .581 .326 3.064
Training

Job .504 .110 .501 4.594 .000 .343 2.914


Enrichment

Job Rotation .175 .096 .184 1.832 .070 .403 2.480

a. Dependent Variable: Employee Performance

According to table above, on the job training beta coefficient value is 0.100 with an
insignificant value of 0.299 which is higher than 0.05. Hence on the job training is found to
have positive insignificant impact on employee performance. Next, off the job training beta
coefficient value is 0.062 with an insignificant value of 0.326 which higher than 0.05.
Furthermore, off the job training is found to have positive insignificant on employee
performance. Moreover, job enrichment beta coefficient value is 0.501 with a significant
value of 0.000 which is lower than 0.05. (Campbell, & Campbell, S., 2008). Following to it,
job enrichment is found to have positive significant impact on employee performance with a
beta coefficient value of 0.501 with a significance value of 0.00 which is lower than 0.05.
Finally, job rotation beta coefficient value is 0.175 with an insignificant value of 0.070 which
higher than 0.05. (Campbell, & Campbell, S., 2008). Therefore job rotation is found to have
positive insignificant on employee performance.

5. CONCLUSION
Training and development will give benefits for employees such as better position and
better career life and it make efficiency of the organization enhance. Instead of unskilled
employees, skilled employees will give a better performance to the employees. The
conclusion that we can make towards the explanation below is, training and development will
give benefits for employees such as better position and better career life and it make
efficiency of the organization enhance. Instead of unskilled employees, skilled employees
will give a better performance to the employees. This paper use questionnaire to get the data
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and the data was generated by using the SPSS tools. By using the descriptive, correlation and
regression to find the significant nexus between the On the Job Training, Off the Job
Training, Job Enrichment and job rotation with employee performance. Hence, the study
concludes that only Job enrichment is the independent variable which has a significant
positive impact on the dependent variable (Employee Performance) while the other
independent variables are found to be insignificant drivers in influencing the employee
performance.

Recommendation

For the recommendation of this research, company need to implement the progressive
HR programs and policies to achieve the goal, build a high-performing employees in the
organization and adopting a comfortable workplace where the employees have to work and
need to work. Moreover, organization should increase their training and development with
the technological changes and present educational in order to develop proper training.
Organization should create a lot of training and development activities to improve the
employee’s performance by enhancing knowledge about the company and improve skills
among the workers. Besides that, organization should build an effective communication
network amongst their employees. This research was conducted on Private Company in Shah
Alam, Selangor, Malaysia. Further studies might be focused on other business sectors and
explore the employee performance based on training and development in different scenarios..

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