The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 58
Organizational Commitment and Climamate in Training Objectives and Implementation on Organizational Training
Needs: Extent of Orgamozatopmal Structure as a Moderating Effect
Dr. Che Mohd Zulkifli Che Omar, Faculty Of Business and Economic, Sultan Idris Education University, Malaysia
ABSTRACT
The objectives of this present study are to understand the influences of commitment towards training objectives and climate in training implementation on organizational training needs. In addition, the role of organizational structure as a moderating influence was also pursued. Based on the data from 115 service and manufacturing companies gathered from quota sampling, effects of commitment towards training objectives and building a supportive climate towards training implementation were found to positively influence organizational training needs (task and people-related skills). The findings also revealed that service firms exhibit greater training needs. With regards to organizational structure, a 4- step hierarchical regression analyses was conducted and the results showed that decentralized firms tend to have higher levels of training needs. Nonetheless, in the event that of an unsupportive climate in training implementation, the rate of decline in the training needs would be greater than centralized firms.
Contrastingly, given the same level of commitment placed on training objectives, decentralized firms will have higher levels of need towards both task and people-related training needs than centralized firms.
Finally, this need is higher for people-related as opposed to task-related training needs.
Keywords: organizational training needs, organizational structure, skill development, people-related skill, task-related skill.
INTRODUCTION
Training and development in organizations in Malaysia are still considered to be low priority in Malaysia (Saiyadain & Juhary, 1995). One of the reasons cited was the lack of systematic assessment of training needs in organizations. Other surrogate issues are the absence of formalized training departments and poorly developed training evaluation procedures. What is worse, organizations tend to exhibit a general negative perception towards the ability of training organizations to fill in their lack of task-skill fit.
This was further confirmed by Saiyadain (1994), who stated that training providers suffer from skepticism, which might arise from training being perceived as irrelevant and too theoretical. Furthermore, a lack of follow-up might add to the list of causes for such skepticism. Overall, with regards to training needs assessment, training content and approaches, and training evaluation — Poon and Othman (2000) attests to the relatively low importance placed on training and development practices in manufacturing and service organizations in Malaysia.
The negative perceptions forewarned do not help in the current circumstance where brain drain is evident in Malaysia. This has been highlighted by the Human Resources Minister, Dr. Fong Chan Onn
The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 59 (―Move to Curb Brain Drain‖, 2005) stating that skilled and experienced workers from Malaysia are moving to Singapore due to the attractive wages and perks. In turn, manufacturing and service organizations are finding it an uphill battle to hire experienced graduates. This national problem points to the challenging task for firms to replenish their knowledge base. A research by Ignatius, Jantan and Ramayah (2004) observed differing patterns in the entire technological learning process and found that although functional groups acquire high levels of knowledge to address their tasks, yet it was not embedded into the organization’s collective memory as a whole. This was attributed to the inability of the firm to retain the knowledge that it has acquired, which might be the direct result of the high turnover in the electrical and electronics industry. Ignatius et al. (2004) also hinted that the vacuum created as a result of brain drain left from was not filled at a rate fast enough despite high levels of knowledge acquisition.
Problem Statement
Therefore, the premise of this present research argues that the vacuum can be filled firstly by the ability of an organization to identify its training needs. In other words, the knowledge base of an organization can be replenished or improved upon by minimizing the discrepancy between the skill needed to accomplish a task and the training provided to attain the skill. With the above gaps in research elaborated, the real problem that this research yearns to address is the inaptitude of organizations in identifying the need for skills development (e.g. task and people-related). This is believed to be contributed by the climate for training implementation and the commitment an organization places on training objectives. Since it is well noted that decentralized organizations have fewer levels of management with wider spans of control, it is believed that increasing the extent of this structure would allow the enhancement of commitment and climate to further influence the organization towards identifying their training needs.
Research Questions
In this study, the research questions are as follows:
1. Do organizational commitment towards training objectives and climate for positive training implementation influence on organizational training needs?
2. Do service and manufacturing firms differ in terms of their organizational training needs?
3. What is the extent of commitment towards training objectives, as well as climate for successful training implementation in service and manufacturing organizations in Malaysia?
4. To what extent organizational structure (decentralization and centralization) as moderator influence on organizational training needs?
Theoretical Framework
As mentioned, the main objective of this present study is to determine the influence of commitment towards training objectives and climate for training implementation on the organizational training needs, and if organization structure moderate this relationship. The relationships among the variables are shown in Figure 1
The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 60
Figure 1
The integrated framework in Figure 1 depicts a research model that is derived based on the notion that training needs is required to be analysis at the organizational level. Such notion is captured through the human capital theory, which asserts that employees’ decision to stay with a firm might hinge on whether their jobs would provide the best task-fit and returns for their skills (Bishop, 1997; Liu, 1984).
Hence, this depends on the extent of acknowledgement that an organization places on individuals that are eager to learn and has a desire for self-development. The recognition or organizational training needs may take on various forms such as the opportunity to allow experiment and implementing of new skills learnt from a recent training program.
Therefore, two conceptual independent variables are used in this relationship in the anticipation of clearing the mist of organizational training needs, which are commitment towards training objectives and climate for training implementation. Based on the present study’s preliminary assessment, the two variables seem somewhat disjoint from top management’s expectation, and so are believed to also contribute to the dependent variable (organizational training needs). The moderating variable, which is the organizational structure, seeks to understand the nature of wider spans of control in influencing the impact of commitment towards training resources and climate for training implementation on organizational training needs. Two demographic variables controlled for conceptually as depicted in Figure 1, which are firm size and type of industry in order to illustrate the generalizability of the postulated hypotheses across variables. Following this are the conjectures that form the rational for the research model.
Hypotheses
H1: There is a positive influence of commitment towards training objectives and training needs.
H1a: There is a positive influence of commitment towards training objectives and the need for task- related skills.
Training Orientation
Commitment towards Training Objectives
Climate for Training Implementation
Organizational Training Needs
Task-Related Skills
People-Related Skills
Organizational Structure (Decentralization & Centralization)
Independent Variables Dependent Variables
Moderating Variable
The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 61 H1b: There is a positive influence of commitment towards training objectives and the need for people- related skills.
H2: Increasing supportive climate for training implementation will have a significant positive relationship with organizational training needs.
H2a: Increasing supportive climate for training implementation will have a significant positive relationship with the need for task-related skills.
H2b: Increasing supportive climate for training implementation will have a significant positive relationship with the need for people-related skills.
H3: Increasing commitment towards training objectives on the need for both task and people related skills would be higher for decentralized organizational structure as opposed to highly centralized organizational structure.
H3a: Increasing commitment towards training objectives on the need for task-related skills would be higher for decentralized organizational structure as opposed to highly centralized organizational structure.
H3b: Increasing commitment towards training objectives on the need for people-related skills would be higher for decentralized organizational structure as opposed to highly centralized organizational structure.
H4: The influence of supportive climate for training implementation on organizational training needs would be higher for decentralized organizational structure as opposed to highly centralized organizational structure.
H4a: The influence of supportive climate for training implementation on the need for task-related skills would be higher for decentralized organizational structure as opposed to highly centralized organizational structure.
H4b: The influence of supportive climate for training implementation on the need for people-related skills would be higher for decentralized organizational structure as opposed to highly centralized organizational structure.
METHODOLOGY
Sampling Procedure
The unit of analysis is the organization and consists of manufacturing and service firms. In order to select a representative sample, the two stratums of service and manufacturing firms were each determined to have the same ratio in sample size. After the removal of questionnaires that were deemed spoilt or incomplete, the remainder or total responses of this study consist of 115 organizations (i.e. a usable rate of 25.56%).
Variables and Measurements
Table 1 shows the summarized description of the measurements and variables alongside with their sources and scales. It should be reminded that the number of items for the measurements were based on the final version after pilot study. Retaining of items were based on the context and scope of the present study.
The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 62
Table 1: Summary of Variables and Measures
Variables Example of Items Scale Source No. of
Items
Size Number of full time
employees
6 pt.
categorical
Kimberly (1976)
1
Industry Manufacturing / Service 2 pt.
categorical
Self constructed 1 Decentralization and
Centralization
The direct control that lower managers have over his/her own operations
5 pt. Likert Deshpande (1982) 4
Organizational Training Needs 1)Task-related skills 2)People-related skills
1) Management Information Systems (e.g. content website development, security)
2) Interpersonal Communication
5 pt. Likert Thamhain (1992) 9
Climate for Training Implementation
Money spent on management training is ineffective
5 pt. Likert Adaptation from Saiyadain & Juhary
(1995)
4
Commitment towards Training Objectives
We set aside adequate fund to train our employees
5 pt. Likert Adaptation from Saiyadain & Juhary
(1995)d
3
Statistical Analyses
Statistical Package for Social Science (SPSS version 11.0) was used to clean, sort and analyze the data collected from the survey.
Hierarchical Regression Analysis
The 4-step hierarchical regression analysis technique was chosen for the analysis of the hypothesized relationships in this study. It allows inclusion of sets of variables into the regression equation and assessment of variation explained on the criterion at each successive stage. In the present study, the first step caters for the control variables such as organizational size and industry. The second step would then include the set of independent variables which would follow suit with the moderating variable in the third step. Finally, the interactions between the independent variables and moderator will be in the final step of the model.
The model was also examined in order to make sure that the four basic assumptions of hierarchical regression were met (Hair, Anderson, Tatham & Black, 1998):
1. Linearity (the degree to which the change in the independent variables is associated with the dependent variable).
2. Heteroscedasticity (constant variance of the error term).
3. Independence of the error terms (the predicted value is not related to any other prediction).
4. Normality of the error term distribution.
The diagnostic tests that were applied to ensure the results are valid for interpretation also includes the study on the degree of multicollinearity. The extent of multicollinearity was determined by assessing the tolerance value and its inverse – the variance inflation factor (VIF).
The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 63 RESULTS
Hierarchical Regression Analyses
Results in the 1st step of the hierarchical regression revealed that service firms are significantly higher than manufacturing firms in the need for ―Task‖ (β = .40, p <.01) and ―People-Related Skills‖ (β
= .31, p <.01). The significance had accounted for a 17 and 12 percent of the variation in the need of
―Task and People-Related Skills‖ respectively.
The 2nd step of the equation showed that increasing ―Climate for Training Implementation‖ leads to a reduced awareness in the need to be trained in ―Task‖ (β = -.41, p <.01) or ―People-related skills‖ (β = - .37, p <.01), respectively. However, increasing ―Commitment Towards Training Objectives‖ amplifies the need for job competency skills, be it ―Task‖ (β = .48, p <.01) or ―People-Related‖ (β = .40, p <.01).
Both variables in the 2nd step had added 41 and 37 percent of the variation explained in the ―Task‖ and
―People-Related Skills‖ respectively.
―Organizational Structure (Decentralization-Centralization)‖ would also determine the level of awareness of ―Task‖ (β = .25, p < .01) and ―People-Related Skills‖ (β = .33, p <.01), such that it explains and additional 4 and 7 percent of the need for ―Task‖ and ―People-Related Skills‖.
In the final step, both interaction effects of Climate for Training Implementation x Organizational Structure (β = 3.69, p < .01) and Commitment towards Training Objectives x Organizational Structure (β
= 2.61, p < .01) significantly influence Task-Related Skills, while the latter interaction effect only impact upon People-Related Skills (β = -3.00, p <.05).
Summary of Major Findings and Results of the Hypotheses The results of the hypotheses are presented in Table 2.
Table 2: Results of the Inferences
Hypothesis Statement of Hypothesis Remarks
H1 There is a positive influence of commitment towards training objectives and organizational training needs.
Supported H1a There is a positive influence of commitment towards training
objectives and the need for task-related skills.
H1b There is a positive influence of commitment towards training
objectives and the need for people-related skills.
H2 Increasing supportive climate for training implementation will have a significant positive relationship with organizational training needs.
Supported H2a Increasing supportive climate for training implementation will have a
significant positive relationship with the need for task-related skills.
H2b Increasing supportive climate for training implementation will have a significant positive relationship with the need for people-related skills.
H3 The influence of commitment towards training objectives on the organizational training needs would be higher for decentralized structure as opposed to highly centralized structure.
Supported
H3a The influence of commitment towards training objectives on the need for task-related skills would be higher for decentralized structure as opposed to highly centralized structure.
H3b The influence of commitment towards training objectives on the need for people-related skills would be higher for decentralized structure as opposed to highly centralized structure.
The Journal of Human Resource and Adult Learning Vol. 5, Num. 2, December 2009 64
H4 The influence of climate for training implementation on the organizational training needs would be higher for decentralized structure as opposed to highly centralized structure.
Partially Supported H4a The influence of climate for training implementation on the need for
task-related skills would be higher for decentralized structure as opposed to highly centralized structure.
H4b The influence of climate for training implementation on the need for people-related skills would be higher for decentralized structure as opposed to highly centralized structure.
The major findings gathered from the two 4-step hierarchical regression are as follows:
1. Service firms have a greater need for task and people-related skills than manufacturing firms.
2. Both, ―Climate for Training Implementation‖ and ―Commitment towards Training Objectives‖ have significant impact on the ―Organizational Training Needs‖; such that the latter displayed a positive effect while the former in the opposite direction.
3. A decentralized firm would exhibit greater impact for both, ―Commitment towards Training Objectives (positive effect)‖ and ―Climate for Training Implementation (negative effect)‖ on the
―Organizational Training Needs‖, as compared to a firm with centralized structure.
4. However, there are no significant differences in impact of Climate for Training Implementation on the need for People-Related Skills between decentralized vs. centralized firms.
CONCLUSION
Specifically, this study was able to illustrate the influence on organizational training needs by harnessing environmental factors such as commitment towards training objectives and resources as well as creating a supportive climate for training implementation. Such that, a supportive climate and increasing top management commitment towards training objectives will increase the level of awareness an organization has over their lack in task and people-related skills. In terms of organizational structure, a decentralized structure was found to have higher levels of organizational training needs as opposed to a centralized structure; a fact which may be attributed to the organization’s ability to provide greater interfunctional coordination and communication.
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Organizationa l Training Needs
Task- Rela ted Skill s
People - Rela ted Skill s