European Journal of Scientific Research ISSN 1450-216X Vol.81 No.3 (2012), pp.397-407 EuroJournals Publishing, Inc. 2012 http://www.europeanjournalofscientificresearch.

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Employees Training and Development in IT Sector: An Essential Instrument for Effectiveness of Organisational Productivity
N. Akbar Jan Research Scholar, Anna University of Technology, Coimbatore-47 Tamil Nadu. India, Asst. Professor/ Department of Management Studies Vel Tech Dr.RR & Dr.SR Technical University E-mail: akbarjan75@yahoo.co.in Tel: +91- 09841282771 / +91 -087544 16291 C. Muthuvelayutham Research Supervisor, Associate Professor in DODE Anna University Technology of Coimbatore Coimbatore-47, Tamil Nadu, India E-mail: drmuthu2009@gmail.com or drmuthuvelayutham@gmail.com Tel: +91 09894458498 Abstract An efficient and effective training is necessary for improving productivity of an organization. It has further become necessary in view of advancement in modern world to invest in training. Thus the role played by employee training and development can no longer be over-emphasized. Employee training and development are based on the premise that employee skills need to be improved for organizations to grow. Organizations which are constantly creating new knowledge, extending it through the entire organization and implementing it quickly inside the new technologies, develop good products and excellent services. These activities determine the company as a learning organization with constant innovation being its sole business. Training is a systematic development of knowledge, skills and attitudes required by employees to perform adequately on a given task or job. It is against the backdrop of the relative importance of employee training and development in relation to effectiveness of organization productivity that this article emphasized. The aim of this study is to examine the determinant factor of training programmes in IT sector. To validate the research model, data was collected from 100 employees who are working in IT companies in Chennai city. The research through Structural Equation Modeling (SEM) using AMOS infers that the good training programmes will increase the productivity of the organization.

Keywords: Human resource management, training and development, IT employees, SEM, AMOS.

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1. Introduction
The current economic environment poses increased challenges for business and industry to be competitive both nationally and internationally which in turn requires these organizations to perform better in terms of productivity, quality, time and service. Forward looking organizations in such a climate are taking steps to undergo massive cultural change so as to bring about changes in their performance. In this context it would be meaningful to identify and delineate the critical factors in the organizational environment that have a positive impact on the performance of an enterprise. Some of the government organizations are getting privatized for factors such as increased international competition, low profit, financial crisis, etc. Many of the IT companies are also getting privatized. Hence, the time calls for utilizing the present Human Resource effectively and efficiently. The best way to make use of the potential capabilities of the employees is through training which improves the existing knowledge and skills and this enhanced capability improves the competency. Training is a set of activities designed to increase an individuals skills, knowledge and experience. It brings attitudinal change among the employees. It is expected to increase employees effectiveness and satisfaction. The success of any training programme largely depends upon the people who are identified for training. Training Needs are felt by the managers when they discover / perceive gaps between standard performance and actual performance of the employees. Organizations are well aware of the fact that competitive advantage can be achieved only with quality people full of skills and competencies. Training Need Analysis is partly concerned with defining the gap between what is happening and what should happen. The training need identification of any organization must contain three types of analysis, viz. corporate, group and individual. The training needs are identified by measuring the gap in the present level of the competencies that should be bridged through effective training. The aim of this study is to examine the determinant factors of impact of training programmes in IT companies as perceived by the employees in Chennai city. A research model was hypothesized by establishing a causal link between the impact of training programmes and their level of job satisfaction.

2. Statement of the Problem

The human resource system should gain the capability to assess and evaluate various aspects of the entire training process starting from need identification to transfer of learning (Lynton & Pareek, 1990). Training is an integral part of Human Resource Development and is crucial for the effective functioning of any organization. Organizations would appreciate the value of adequate, consistent and long term investments in such functions. They would face challenges due to technical and economic changes and hence, they need to prepare themselves to adapt to these changes. For this they require up gradation of skills and knowledge and change in the attitude and perception of their employees. The employees concentrate more on the job related activity and mostly avoid the act of establishing or maintaining human relations with peers, sub-ordinates and supervisors. This kind of attitude prevents them from sharing their wisdom with others. Consequently they behave differently. Hence, it is very much essential to inculcate the value of team spirit and team building among the employees to achieve the goals of any organization. For this purpose, the employees need to understand the organization so as to enhance their competency level through various types of training modules.

3. Review of Literature
Marget and Lohman (2001) found plan training on-the-job programs have historically used deductive training strategies as a means to deliver the training content. However, the changing nature of work in todays organizations demands that employees be more effective problem solvers and independent learners than ever before. Therefore, alternative training strategies, such as an inductive approach, must be considered to respond to these changing job demands. Although inductive training strategies hold

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much promise for developing higher level cognitive skills, they are not without their limitations. This study compares deductive and inductive training strategies and presents factors to consider when selecting a strategy for planned on-the-job training. Bhattaacharyya (2002) says that training serves the following important purposes for an organization: 1) to increase the performance level of an employee and to develop him/her in such a manner that he/she can rise to the position of higher responsibility, 2) to constantly develop manpower to meet the current as well as future needs of the organization, 3) to ensure effective utilization of human resource, 4) to integrate individual goals with the organization goals by creating a climate so that an individual employed can best achieve his goals by achieving the goals of the organization, 5) to be more specific, this is the stage of identifying employees within the organization. Goldstein and Ford (2002) show that individual characteristics (including trainability-that is ability to learn the content of the training-personality, age and attitudes) influence motivation, learning, transfer of training back to the job, and job performance features of the work environment and climate, opportunity to perform trained tasks, manager support, organizational justice and individual versus team context) also affect it stage of the training process. This illustrates that characteristics of the individual, as well as the work environment, are critical factors before training. Hakan Regner (2002) explains that on-the-job training has a large positive effect on wages for employees in Sweden, and employees in jobs that require long on-the-job training earn significantly more than workers in jobs with short training requirements. The effects of training are large for the recently hired and low for the senior employees. There are significant wage effects of general and specific on-the-job training, and the effect is significantly larger for general training. Separate estimates for the public and private sectors show significant effects of specific training only for public-sector employees and large effects of general training for private-sector employees. The results suggest that the distinction between general and specific training matters, that firms are willing to pay for general training and that there is heterogeneity in the returns from these forms of training. Pattanayak (2002) said that discussed training effectiveness is to impart new entrants the basic knowledge and skill they need for an intelligent performance of defined tasks: to assist employees to function more effectively in their present positions by exposing them to latest concepts, information, techniques and developing the skills they will need in their future roles, to broaden the minds of managers by providing them with opportunities for an interchange of experiences within and outside with a view to correct the narrow outlook that may arise from over specialization. Asha (2007) in her article Psychological Dimension of Training and Development pinpoints that planning and designing a training module along the lines of content, theme and psychological aspects make a training program more enjoyable, learnable and capable of providing long term benefits. Training and development has various connotations to different people in different work situations. For instance, to a trainer, the final objective of a training program would be to deliver an idea and reach out to the participants. But for a trainee, it would be to learn an idea, enhance his knowledge, and then he must try to acquire new skills. But organizations would require employees to assimilate learned skills in the present job and to make better endproducts. From the psychological perspective, training skills (learning) are much required and through that each trainee acquires a value addition which must be imbibed in order to enhance employee performance. Mukherjee (2007) in his article on Training and Development in Human Resource-outlook for the future reveals that the role of training and development in human resources gains prime importance from the time of conception of any organization; there is need for training and development of manpower. With more and more outsourcing of jobs, the role of training and development has become absolute with the tremendous growth in technology. It is time that organizations planned a more dynamic system of training and development by equipping employees to deal with change and transform accordingly. Pilati et al. (2008) concluded that research in training, development and education (TD&E) in organizations has produced important results in the last two decades. Evaluation of TD&E has been a special focus of this research, which has resulted in the production of relevant predictive models. The present study has the aim of testing a model for effectiveness of training on work, with the trainee's motivation and satisfaction with training as the antecedent variables and the

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type of training as a moderator variable. Data collection with 600 participants in a Brazilian bank was conducted with measurement scales before training, at its end and three months later. The data were analyzed through structural equation modeling. The results indicate that the motivation of the trainee and satisfaction with the training are predictors of its effectiveness on work and that the type of training affects this predictive relationship. The key feature of the type of training was the cognitive complexity of expected competencies. P.S.Velmurugan et al. (2009) find that training is the periscope to see the future. It is intended to identify the future of the organization. Development creates generalists and helps people to think strategically, even when their present jobs do not call for such thinking. It pushes and stretches people beyond their present function. Hence this study attempts to study the effectiveness of training and development program taking the Chennai, Petroleum Corporation Limited, Chennai, as sample. The perceptions of the employees performance before the training program and after the training program were measured. Apart from it, whether the company was really interested in providing training program to the employees and whether they equip the trainers with the latest technologies were also measured. The results depicted that due importance was given to training and also the employees said that the trainers were well equipped. The majority of the employees suggested that the training program had helped them to do the job better. Thus it was concluded that the program increased the level of satisfaction of the employees in discharging their duties, even though a small section of the employees differed with the majority. By and large, it had been effective in developing the human resources in the Chennai Petroleum Corporation Limited (CPCL), Chennai.

4. Research Design
The study is descriptive in nature. It attempts to describe the attitudes of the employees to the training programs and its impact on their job. The Simple Random Sampling was used to select the employees from three technical departments for the study. The sample size of the study was 100 IT employees employed in different IT companied in Chennai.

5. Framework of the Questionnaire

The questionnaire consists of 18 constructs, which are based on the previous research studies. The following table presents the eighteen constructs used in the study.
No. X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12 X13 X14 X15 X16 X17 X18 Statement Training given to me helps to do my job effectively. Actual training given and the real working conditions are entirely different. Training given increases my confidence and helps me to face stress in the working condition. I am satisfied with the present methods of training. Training helps me to maintain good relationship with my colleagues and subordinates. I am satisfied with the quality of training that I receive for my current position in the company. Training is one of the effective means to achieve the objective of the organization. Training normalizes the rate of transfer and turnover. Bottlenecks and deadlines can be met through training. Do you think that a good training program changes your attitude and does something good to your career? Timing of training session is convenient. I am attending the training programme regularly. Is there any feedback system in connection with the training programmes? Interaction of trainer with trainees is good. Do you think it is essential for your nature of job? Is the infrastructure for the training programme adequate? Training gives me clear idea about the job. Do you feel the methods of training given are correct and yield results?

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6. Structured Equation Modeling (SEM) Using Partial Least Square (PLS) Path Modeling
SEM is most appropriate for this study due to the interdependent nature of the research variables. The SEM was chosen to test the structural model for several reasons. The present research models comprise many paths. Unlike regression that examines only a single relationship at a time, SEM provides estimation for a series of separate regression equations simultaneously. SEM is particularly useful when dependent variables become independent variables in subsequent dependent relationships (Hair et al., 2006). SEM technique is superior as it allows for the specification and testing of complex path models and is considered more rigorous and flexible than the comparable technique (Kelloway, 1998). SEM is a statistical technique for testing and estimating causal relations using a combination of statistical data and qualitative causal assumptions. SEM allows both confirmatory and exploratory modeling, meaning they are suited to theory testing and development. Confirmatory modeling usually starts out with a hypothesis represented in a causal model. The concepts used in the model are operationalized to allow testing of the relationships between the concepts in the model. The causal assumptions embedded in the model often have falsifiable implications that are tested against the data. SEM allows the simultaneous examination of the effects of the antecedents as opposed to ordinary regression analysis. SEM with latent variables has become a quasi standard in investigating complex causal relationships in many social sciences disciplines. Recently, Partial Least Squares (PLS) path modeling has encountered increasing popularity as an easy, yet powerful, estimation technique for structural equation models. A key advantage of the PLS method is its relatively unrestricted applications especially in SEM situations where it is difficult or impossible to meet the hard assumptions of more traditional multivariate statistics. PLS path modeling can straightforwardly incorporate both reflective (effect) and formative (cause) measurements models of latent variables. In essence, PLS path modeling is a robust SEM technique, which is a flexible and powerful means to predict and assess relationship between latent variables in impact of training programmes in IT sector. SEM is applied to evaluate the strength of the hypothesized relationships among the constructs in the theoretical model developed by this study. SEM is a family of statistical technique that incorporates and integrates factor analysis and path analysis. It is utilized to model multivariate casual relationships and test multivariate hypotheses. In recent years, the application of SEM is becoming increasingly prevalent in the field of research. Hypotheses was formulated and represented in a causal model. The concept used in the model is then operationalized to allow testing of the relationships between the concepts in the model. The model is tested against the obtained measurement data to determine how well the model fits the data. Model creation is discussed in detail below.

7. Theoretical Framework and Hypothesis Development

When understanding the phenomenon of impact of training programmes, it is helpful to have a framework within which to work and from which testable hypotheses are drawn. A theoretical framework in this research enables predictions, to make the outcome of training programmes from the IT employee perspective. It enables to evaluate observed business behavior and therefore provides better explanation for the successful implementation of training programmes and its consequences. Theoretical Framework To understand better the impact of training programmes of IT sector in Chennai, a framework is established which describes the causal relationship between the factors for impact of the eighteen selected variables. The rationale underlying this research framework is straightforward. A higher level of training programmes will lead to high level of productivity of the company.

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By considering the impact of each facilitating factors, the framework in figure 1 depicts the proposed relationships between the constructs as discussed from the review of literature. The numbers next to each arrow corresponds to the eighteen hypotheses developed in this article. Figure 1 shows the impact of training programmes in select IT companies. Hypotheses Development The following hypotheses are framed with the available literature: H1 : Impact of training programme is positively associated with the statement Training given to me helps to do my job effectively (X1). H2 : Impact of training programme is positively associated the statement Training gives with real working conditions. H3 : Impact of training programme is positively associated the statement Training given increases my confidence and helps me to face stress in the working condition. H4 : Impact of training programme is positively associated the statement I am satisfied with the present methods of training. H5 : Impact of training programme is positively associated the statement Training helps me to maintain good relationship with my colleagues and subordinates. H6 : Impact of training programme is positively associated the statement I am satisfied with the quality of training that I receive for my current position in the company. H7 : Impact of training programme is positively associated the statement Training is one of the effective means to achieve the objective of the organization. H8 : Impact of training programme is positively associated the statement Training normalizes the rate of transfer and turnover. H9 : Impact of training programme is positively associated the statement Bottlenecks and deadlines can be met through training. H10 : Impact of training programme is positively associated the statement Do you think that a good training program changes your attitude and does something good to your career?. H11 : Impact of training programme is positively associated the statement Timing of training session is convenient. H12 : Impact of training programme is positively associated the statement I am attending the training programme regularly. H13 : Impact of training programme is positively associated the statement Is there any feed back system in connection with the training programmes?. H14 : Impact of training programme is positively associated the statement Interaction of trainer with trainees is good. H15 : Impact of training programme is positively associated the statement Do you think it is essential for your nature of job?. H16 : Impact of training programme is positively associated the statement Is the infrastructure for the training programme adequate?. H17 : Impact of training programme is positively associated the statement Training gives me clear idea about the job. H18 : Impact of training programme is positively associated the statement Do you feel the methods of training given are correct and yield results?.

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Figure 1 : Impact of Training Programme Hypotheses Model

8. Results
This section presents the result of SEM using PLS. PLS analyses simultaneously a measurement model describing the relationships between a research construct and the indicators used to measure the construct (ie., factor loadings) and a structural model depicting the relationships between research constructs (ie., path coefficients). PLS examines the significance of the relationships between research constructs and the predictive power of the dependent variable; thus it is better suited for explaining complex relationships and building theories. Item reliability was examined by means of factor loadings of the items of the constructs (eighteen selected statements).

9. Path Modeling
The hypotheses were tested using PLS a SEM technique. SEM enabled researcher to answer a set of interrelated research questions in a single, systematic and comprehensive analysis by modeling the relationship between multiple and dependent constructs simultaneously. SEM assessed the structural model, the assumed causation among a set of dependent and independent constructs and evaluated the measurement model loading of observed items (measurements) on their expected latent (constructs). The result was hence a more rigorous analyses of the proposed research model and Gefen et. al (2000) viewed it as a better methodological assessment tool. Hence this study used AMOS 18.0 software to perform the analysis.

10. Model Validation

The conceptual model in figure 1, was estimated using PLS latent path model developed by Wold (1982) and as implemented by Lohmoller (1989). Model estimation was carried out with the selected eighteen variables. Bootstrapping was done with all the 100 cases. The model was estimated at 5

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percent level of significance. Hence, T values greater than 1.96 indicate significant relationship between the variables. Figure 2 illustrates the resulting structural model portraying the impact of the selected eighteen variables on training programmes. The following table brings out the results of bootstrapping.
x1 x2 x3 x4 x5 x6 x7 x8 x9 x10 x11 x12 x13 x14 x15 x16 x17 x18 Paths Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Impact of_Training Programmes Estimate 1.148 1.564 1.8 1.316 1.155 1.932 1.071 1.609 1.606 1.612 0.304 -0.291 0.727 0.452 -0.947 0.417 -0.451 1.000 Mean 0.895 0.871 0.604 0.845 0.922 0.768 1.091 0.564 0.965 0.976 2.518 1.939 1.093 1.267 0.999 0.592 1.895 1.108 S.E. 0.133 0.136 0.103 0.128 0.137 0.129 0.16 0.094 0.15 0.151 0.358 0.276 0.158 0.181 0.146 0.085 0.27 0.162 t Value 6.712 6.413 5.842 6.582 6.716 5.954 6.803 6.015 6.443 6.445 7.028 -7.03 6.929 7.00 -6.84 6.971 -7.01 6.836 Result H1 Accepted H2 Accepted H3 Accepted H4 Accepted H5 Accepted H6 Accepted H7 Accepted H8 Accepted H9 Accepted H10 Accepted H11 Accepted H12 Rejected H13 Accepted H14 Accepted H15 Rejected H16 Accepted H17 Rejected H18 Accepted

Figure 2: Structural Model Results of Hypotheses of selected eighteen factors on Impact of training programmes

T value for the path statement Training given to me helps to do my job effectively was 6.712 which implied positive impact and it is significant and thereby proving the hypothesis the impact of training programmes is positively related with the statement Training given to me

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N. Akbar Jan and C. Muthuvelayutham helps to do my job effectively. Hence, the IT company employees are need effective training which helps to increase the productivity. The second statement Training gives with real working conditions has the T value 6.413 which implied positive impact and it is significant and thereby proving the hypothesis (H2) Impact of training programme is positively associated the statement Training gives with real working conditions. Hence the training with real working conditions successfully produces productivity. T value for the path statement Training given increases my confidence and helps me to face stress in the working condition was 5.842 which implied positive impact and it is significant and thereby accepting the hypothesis (H3). Hence the better training gives increase the employees confidence level and help them to manage stress in their working condition. T value for the path statement I am satisfied with the present methods of training was 6.582 which implied positive impact and it is significant and thereby accepting the hypothesis (H4). Hence the satisfied training produces productivity in a good manner. T value for the path statement Training helps me to maintain good relationship with my colleagues and subordinates was 6.716 which implied positive impact and it is significant and thereby accepting the hypothesis (H5). Hence the training supports to maintain good relationship with their colleagues and subordinates which helps to increase productivity. T value for the path statement I am satisfied with the quality of training that I receive for my current position in the company was 5.954 which implied positive impact and it is significant and thereby accepting the hypothesis (H6). Hence the training helps to promote their job position. T value for the path statement Training is one of the effective means to achieve the objective of the organization was 6.803 which implied positive impact and it is significant and thereby accepting the hypothesis (H7). Hence the training gives high impact to achieve the objective of the organization. T value for the path statement Training normalizes the rate of transfer and turnover was 6.015 which implied positive impact and it is significant and thereby accepting the hypothesis (H8). Hence the good training procedures normalize the turnover. T value for the path statement Bottlenecks and deadlines can be met through training was 6.443 which implied positive impact and it is significant and thereby accepting the hypothesis (H9). Hence the effective training helps to manage bottlenecks and deadlines of their projects. T value for the path statement Do you think that a good training program changes your attitude and does something good to your career? was 6.445 which implied positive impact and it is significant and thereby accepting the hypothesis (H10). Hence the good training squeeze out their attitude and career. T value for the path statement Timing of training session is convenient was 7.028 which implied positive impact and it is significant and thereby accepting the hypothesis (H11). Hence the training session is very convenient for improving their career. T value for the path statement I am attending the training programme regularly was -7.032 which implied negative impact and it is significant and thereby rejected the hypothesis (H12). Hence the employees are attending the training programmes regularly. T value for the path statement Is there any feedback system in connection with the training programmes? was 6.929 which implied positive impact and it is significant and thereby accepting the hypothesis (H13). Hence the employees opined that the feedback system of the training programmes helps to fine tune the training programs and productivity of the organization. T value for the path statement Interaction of trainer with trainees is good was 7.001 which implied positive impact and it is significant and thereby accepting the hypothesis (H14). Hence

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the employees opined that the interaction of trainer in the training programmes is good to increase productivity of the organization. T value for the path statement Do you think it is essential for your nature of job? was -6.84 which implied negative impact and it is significant and thereby accepting the hypothesis (H15). Hence the employees accepted that the training programmes is necessary for their job. T value for the path statement Is the infrastructure for the training programme adequate? was 6.971 which implied positive impact and it is significant and thereby accepting the hypothesis (H16). Hence the employees opined that the training programmes which have adequate infrastructure. T value for the path statement Training gives me clear idea about the job was -7.01 which implied negative impact and it is significant and thereby rejecting the hypothesis (H17). Hence the employees opined that the training programmes supports to get clear idea about the job. T value for the path statement Do you feel the methods of training given are correct and yield results? was 6.836 which implied positive impact and it is significant and thereby accepting the hypothesis (H18). Hence the employees opined that the method of training programmes is very effective and increase the productivity of the organization.

11. Conclusion This research study will add to the different dimension and diversity of the impact of training programmes in terms of perspective, method, unit of analysis and data analysis. The research using Partial Least Square method infers that the employees perception and the selected eighteen statements are highly supported to increase the productivity of the organization. The research through Structural Equation Modeling (SEM) using AMOS infers that the good training programmes will increase the productivity of the organization.

12. Contribution to the Policymakers

This framework enables the policymakers associated with training to address the impact of training programmes in IT sector. Policymakers of IT companies need to give greater attention to the development of the information pertaining in the training programme, communication, and technology and could utilize the result of this study as a standard for evaluating the training session.

13. Scope for Future Research

The study focused on the training programme which was impacted by the IT sector employees in Chennai city. To verify the findings in this study, it would be appropriate to undertake another study that will focus on the training programmes in Automobile industry in Chennai as well. The questionnaire could be modified to focus on the employees rather than IT sector. The current study is a comprehensive study. The eighteen variables taken in this study can be taken for an independent study or a certain combination of variables can also be taken.

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