Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2019 Vol: 25 Issue: 2S

Effect of Participate Leadership and Employees Training On Organizational Productivity: A Study of E&E Sector in Malaysia

Gholamreza Zandi, University Kuala Lumpur

Ayesha Aslam, SEGi University

Mohamad Hisyam Selamat, SEGi University

Muhammad Umar Nasir, University Kuala Lumpur

Abstract

This research paper is a reveals the results of the studies the impact of Participative leadership style and employees training on organizational productivity in the E&E sector of Malaysia. The targeted population of this study contains employees and supervisors who are currently working in E&E organizations and numbers of samples are 220. Probability sampling technique is approached in this research and researcher get the feedback form quantitative method to collect the data. Data were analyzed using simple percentage and SPSS. The result shown most significant and effective variable is participative leadership which affects the organizational productivity more. All the variables have significant and positive effect on organizational productivity but participative leadership is more influential.

Keywords

Participative Leadership, Training, Quantitative, Organizational Productivity, Influential, Supervisor, Organization.

Introduction

Numerous organizations all over the globe rely upon the team work theory to provide a quicker decision making process and to enhance the competitive edge. West in 2014 revealed a similar situation by stating the fact that team work environment leads toward better quality and bring innovation in work. West also stated that team work leadership is considered as more vital factor to maintain and retain the information and to increase the information by utilizing the information effectively and this leadership leads the organization toward success.

Organizational Productivity is considered as the units of produced items in any organization and sold those products in the market to get profit. Organizational Profitability increases when the number of produced units increases and the information of those produced units stay steady. On the other hand, when the quantity of produced units’ increases and the capacity of produced units of information stay steady, or on the other hand, when the quantity of units of produced items stays established and the number of produced units of information decreases (Mansor et al., 2013; KT Mahoney, 2015; Akuegwu & Nwi-ue, 2017; Samaila et al., 2018; Zhang et al., 2018). In manufacturing industries, production is measured by inspecting the generated units by large scale. Organizational efficiency is measured by the generated number of products and then profit which is earned by selling them and all over the generated profit. This is usually simple to do each and every time information and produced units are promptly distinguishable and countable (Cherniss, 2014). Researches on Organizational Productivity refer to the numerous measures improvement which helped the organizations to boost its structure by gathering the essential components. These calculating measures in organizations presented more information about particular and economical implementation of the organizations in manufacturing sector (Siegel & Waldman 2013; Dampson et al., 2018; Rahman et al., 2018; Huragu & Chuma, 2019).

Electric & Electronic (E&E) is considered as the sub sector of manufacturing industry in Malaysia. This added an additional value of 27.7% in all the industry of manufacturing as a sub sector and 21.8% in employment among all the sub sectors of manufacturing industry of Malaysia (Trivellas, P., & Reklitis, P., 2014). Malaysia is considered as one of the most significant economical countries in the world, although it has challenged a huge portion of the hazard as it incorporated by the challengers by having various diverse preferential points. Malaysia's assembling sector is widely an isolated body amid the local industries and commercial projects (RD Russel, 2010).

Organizational productivity in E&E industry of Malaysia has been considered as the backbone support of Malaysian economy. The main business in E&E sector is revealed as the main benefactor overall as well from the income perspective and occupational perspective as well to create the opportunities. Malaysia export their electronic products to numerous other countries and most big dealers are US, Singapore, Hong Kong, Japan and China and generate a lot of profit to support Malaysian economy. The E&E sub sections are in charge of a remarkable portion of cumulative earnings which included the quality in the assembling division (27.5%) and additionally in its business (22%). The subsector's of E&E commitment to Malaysia's tariffs reduced persistently over the former decades, by shriveling since 62.7% in 2010 to 37.5% in 2016. Estimated income generated by E&E and its sub divisions in the year of 2016 are RM 260 billion.

Electric & Electronic is sub sector of manufacturing industry and have most significant contribution in the economy boost up. The E&E sub-sector is liable for a foremost part of entire additional worth in the manufacturing sector (29.0%) as well as its employ (24%). According to Malaysian Productivity Corporation Statistical Analysis 2015, The subsector’s of E & E influence to Malaysia’s exports diminished gradually over the past decade and partial, shrinking from 61.8% in 2001 to 33.5% in 2014.”

Literature Review

Participative Leadership

Participative leadership is well-defined as a leader’s non-authoritative behavior that provide opportunities to its junior employees to bring creative ideas and take part in the descion making process for quality and innovative descion (Sarti, 2014). In participative leadership, the leader boosts its subordinates to express their ideas and suggestions to enhance organizational productivity (Yan, 2013).

Organizational outcomes as well as human outcome reduces because of poor leadership and the consequences come out as employee stress, disenchantment, lack of creativity, cynicism high employee turnover, and low productivity (Yulk, 2014). In organizations, poor leadership rescinds the human spirit to work and their level of commitment which is essential to ensure to boost organizational productivity (Robbins, 2014). In Malaysia, most of the organizations today are moving towards more liberated leadership structure which allow employees to participate in the descion making process for the quality work and to gain employees high degree concern to enhance organizational productivity (Rost, 2013).

The average Malaysian employee in recent times appears satisfied with an open door policy of management with adequate avenues for effective communication consultation and delegation of powers which covers some degree of participation (Bergen et al., 2014). Main purpose to adopt participative leadership in the organizations is to involve the employees in decision making process of the organization and it helps the employees to create in such a sense of recognition and belonging which could raise the person morale, as they will see themselves as very important in the organization (Hartong & Koopman, 2011). This leadership style perpetually leads such employees to a higher output in terms of organizational productivity.

Although a number of recent studies have started to examine the differential effects of participative leadership and cognitive trust on organizational productivity (Yang, 2014), revealing the fact that participative leadership is considered as motivational factor for employees and effective factor to enhance organizational productivity with their involvement (Ejimabo, 2015).

For instance, Babak (2012) measured the relationship between participative behavior and work productivity in E&E companies. The results from prior studies related participative leadership styles indicated that when leaders show respect for and confidence towards workers in the decision-making process of organization and take their opinion to perform work tasks, the leaders demonstrate a participative behavior. The results of that study reveals positive relationship between work productivity and participative leadership.

Employees Training

Employees training enables employees to be more competent and more effective to perform their work. Kao (2015) narrated that organizations that conduct on and off job training and development practices, they are able to retain their customers, suppliers, employees, stakeholders in the long-run and foremost enhance certainly organizational productivity.

According to Wright & Geroy (2015) in organizations, effective on and off job training programs enhance the competency level of employee’s positively. In a prior research, researcher argued that training and development are also a means for employers to address the employees ‘needs to learn new skills, techniques, tools to implement for better organizational productivity (Waqar, 2018).

Ahmad & Bakar (2013) sorted out by their study that if training is attained on both individual and organizational level, then for sure it brings a high level of commitment on the part of employees and their concern for organization help the organization to uplift the productivity of organization.

Serkan & Emir (2014) emphasized that employees training must be organized in such a way that helps them to gain their commitment to boost organizational productivity by improving their work quality. Mthokozisi & Clifford (2015) acknowledged that concern to provide traning of employees is as a result of some human resource practices such as career development and training opportunities) Malaysian E & E companies can gain a competitive advantage over their rivals by endowing on employees on and off job training because training can help to enhance organizational productivity at best level (Javad, 2013).

Diverse training practices are followed in different E&E industries and in different organizations too to bring new techniques in the organizations and bring updating system in the organizations (Nksoi, 2015). So, the need of training and development programs is depending upon the requirements of the job profile, as E&E sector is relatively more demanding regarding to the employees training because in the production area, new and updated systems introduced with the passage of time. Prior researches considered employee training as a vital action for effective human resource management in any organization to empower the employees more skilled. The key principles of employees training give emphasis on providing meaningful ideas for employees based on significant theories, and then consider the features of effectiveness and efficiency, differences among employees, and continuous development proves productivity level.
helpful to enhance organizational productivity. (Diab & Ajlouni, 2015). In Malaysian E & E companies, employee training refers to learning and advancement programs that aim to provide employees with relevant information, new skills to enrich the opportunities of professional development (Elnaga & Imran, 2013). Employee training is related with the skills that an employee should gain to help him by working with others in an attempt to achieve organizational goals for increment of organizational productivity (Truitt, 2011). Sabir et al. (2014) thought about training as the acquisition of knowledge, skills, and abilities by professional development. In the same way, Singh & Mohanty (2012).

Organizational Productivity in E & E sector of Malaysia

There is a general understanding among researchers that productivity is an important aspect to be measure in work organization (Suliman, 2018) and it has now became a significant indicators to measure overall organizational performance in numerous management studies (Wall, 2014). In reality, performance that is based on an absolute value or relative judgment may reflect overall organizational performance (Gomez-Mejia, 2015). Effective productivity of any organization deeply depends on the performance of its employees; therefore, employee competent level is something inevitable in the organization and should not be unnoticed or demoralized (Janes, 2018). An excellent organizational productivity is considered as most significant factor for every manager in E&E sector and to measure the organizational productivity refers to a revealed that the investments in employee training result in beneficial organizational productivity.

Systematic process of effectively and proficiently executing an action or concept is crucial key to enhance organizational productivity (Neely et al., 2017). For that reason, to enhance the organizational productivity, it is important for the E & E organizations to enrich the skills and competencies of their employees through training and adopt the leadership style which help the employees to share their ideas and techniques to bring innovation (Richard, 2009).

It is vital for an organization to set up an ample chart that enables managers and employees to have vibrant direction and to achieve their routine tasks and ultimate goals which is mandatory step to enhance organizational productivity (Tseng, 2014). But still according to Gholami (2013), According to Kaplan & Norton (1992), there are no universally agreed measures that can provide a clear organizational productivity in term of financial and non-financial factor.

According to Aneeqa (2018) mostly high performing organizations are able to create an assortment for E & E sector and society benefits such as enticing resources, wealth generation and create jobs opportunities. These researchers also exposed that an accurate measurement of organizational productivity may able to provide consistent attentiveness into what affects mostly on organizational productivity and how E & E organizations can be able to develop righteous strategies, arrange resources, meet customer’s expectations and compete and endure by exploiting the human resources more capably (Shan, 2014). Poor organizational productivity will mislead the results that lead to a poor competitive position (Inkenen, 2015).

Research Methodology

Data Collection

Based upon the research objectives, the most appropriate data collection technique in this research was a quantitative method. A questionnaire prepared and distributed among the supervisors whom were in the E & E companies directing the production departments. The data was collected by getting the supervisors’ feedback on the questionnaires.

Population and Sample

The main population for this research will be the employees who are working in the E&E companies of Malaysia. Those employees who are currently working as executives and the employees who are working as supervisors in production apartment are the main targeted population of this research. The chosen sample size is more than 220 employees from different E&E companies in different cities of Malaysia.

Research Technique

This research is based on the Quantitative Research type, in which researcher prefer to collect the data in the term of systematic and firsthand or numerical form. The most appropriate type of sampling technique for this study is probability sampling. So for this type of research, data collected by probability sampling technique to collect the data from the executives or supervisors in the E&E companies of Malaysia. The questionnaire is distributed among the individuals to get their feedback related to participative leadership style and employee training on organizational productivity. The most suitable measurement scale for this research will be Numerical Scale.

Data Analysis Technique

The purpose of analyzing data is to obtain practical and valuable facts by collective data from the respondents. The exploration of collected data, regardless of whether the data is qualitative or measurable, may define and review the data, recognize relationships between independent and dependent variables, compare those variables by using statistical tests, categorize the difference and consistency between variables, conclude the results by summarizing the test results and for all that the researcher interpret the findings. Statistical software SPSS 22.0 is used to analyze the data and it is especially used for statistical analysis in research and mostly referred in researches.

Data Analysis

Demographics

In the demographics section, researcher reveals the gender, nationality, education and monthly income of those employees who are currently working in the E & E sector of Malaysia. Research has performed on 220 employees. The detail of employees’ demographics helps the researcher to analyze the data more deeply. Demographics detail is given in the following Tables 1 & 2.

Table 1 Data Analysis
Gender Male 128
  Female 92
Nationality Malaysians 155
  Foreigners 65
Education High school 7.89%
  Diploma 23.25%
  Bachelors 52.19%
  Masters 16.67%
Monthly Income (RM) between 1000 to 2000 29.75%
  between 2001 to 3000 34.56%
  between 3001 to 4000 21.77%
  between 4001 to 5000 8.87%
  Above 5000 5.05%
Table 2 Regression Analysis
  Sig. value R value
Participative Leadership 0.001 0.898
On job training 0.000 0.647
Off job training 0.003 0.827

Regression Analysis

The authors executed regression analysis on organizational productivity as dependent variable and participative leadership and employee training as independent variable. Based upon the regression analysis findings, participative leadership and employee training both have positive and significant effect on the organizational productivity. Some dimensions have more effect on organizational productivity and some has less, but all the independent variables have positive and significant effect on organizational productivity. Most effective independent variable is participative leadership.

Conclusion

Researcher comes up with the certain conclusions by analyzing the collected data from the E & E sector employees in Malaysia. Regression analysis has been performed to exhibit the cause and effect relationship between dependent and independent variables. This research contributed to enhance the productivity level of the organizations by getting the feedback of the employees who are working in the E&E companies and performing their job duties especially in the production area. For the employees the most effective factor is participative leadership style which they follow and help them to enhance the organizational productivity level by performing their work more creatively and effectively.

Based upon the research and collected data participative leaders need to change the world or if nothing else the universe of their association. A participative leader is visionary leader who thinks in potential outcomes however trusts that those conceivable outcomes comes substances. The most effective independent variable is participative leadership among employee on and off job training. Employees got more effective and efficient in work when they find more opportunities to work in a friendly environment by bringing some innovation and overall it effects on organizational productivity positively and vastly. Employees who are working in the E&E sector of Malaysia, they prefer to work with their participation in work where they can bring some innovativeness with their ideas and their executive appreciates their participation. For human resource, participative leadership is an effective practice to enhance organizational productivity. Second effective practice is off job training, which empower employees to enhance overall organizational productivity.

Recommendations

Based upon the results of this study, researcher recommended to the executives of E&E sector organizations in Malaysia, they must adopt participative leadership style. Allow their employees to give their ideas, involve in the work to bring more innovation and creativity, it helps to enhance their confidence level and overall it effect on organizational productivity. Second recommendation is to provide employees of job training. Employees become happier when they get chance for off job training. Because they get relaxation from their job and get opportunity to learn new techniques and skills for their job. Based upon the findings, off job training and participative leadership are two main pillars to boost organizational productivity. Next researches must reveal more factors that may have significant effect on organizational productivity in E&E sector Malaysia.

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