A STUDY TO INVESTIGATE THE RELATIONSHIP BETWEEN TRAINING AND EMPLOYEES’ ORGANIZATIONAL COMMITMENT

A STUDY TO INVESTIGATE THE RELATIONSHIP BETWEEN TRAINING AND EMPLOYEES’ ORGANIZATIONAL COMMITMENT

Master thesis, Msc HRM

University of Groningen, Faculty of Management and Organisation,

August 31, 2007

STELLA. S. FUMBUKA Student number: 1655892

Plutolaan 329

9742 GK Groningen, the Netherlands Tel.: +31 616863490

e-mail: fkstella@yahoo.com

Supervisors

Acknowledgments

The time I have spent for one year at the University of Groningen is a rewarding experience in my life. I have learnt a lot from various courses in the academic programme and from the indigenous people of the Netherlands. The experience I shared with other international students is valuable.

I would like to thank the Netherlands organization for international cooperation in higher education (Nuffic) for funding my studies. I recognize the support provided by my employer, Dar es salaam Water and Sewerage Authority (DAWASA), for granting the study leave. Special thanks to Mr. Archard Mutalemwa, the Chief Executive Officer (CEO), for approving the leave to attend this programme.

Several people have contributed to this thesis. First, I am grateful to my first supervisor, Hanneke Grutterink. She has been very helpful all the time by providing me with intellectual guidance that enabled me to write this work. Second, I am thankful for my second supervisor, Hans van Polen for his constructive ideas and criticism that helped me to accomplish this paper. Third, I wish to thank Jim Yonazi for his comments on the early draft. Fourth, my gratitude to Hawa Tundui for her moral support and prayers.

Table of Contents Abstract ...3 Chapter 1 Introduction ...4 1.1 Objectives ...7 1.2 Research questions...7 1.3 Research Methodology ...7

Chapter 2 Literature Review...8

2.1 Introduction...8

2.2 Employees’ Commitment ...8

2.3. Training...10

2.4 Types of Training...10

2.4.1 General training ...11

2.4.2 Firm specific training...13

2.4.3 Formal Training ...14 2.4.4 Informal Training...15 2.5 Organisational Climate ...16 2.5.1 Opportunity to perform ...17 2.5.2 Supervisor’s support ...18 2.5.3 Peer support ...19 2.5.4 Reward system ...20 2.6 Research model...23 Discussion ...24 Conclusion ...26

Strengths, limitations and directions for future research ...26

References...28

Abstract

Chapter 1 Introduction

The availability of skilled and knowledgeable employees is critical for organisational performance (Riding and Mortimer, 2000). Training is a management practice which can be employed to enhance the knowledge and skills of employees as well as to give them an incentive to increase their commitment (Bartlet, 2001). Furthermore, commitment has been of great concern because it influences the willingness of employees to decide whether to stay or leave their organisation (Meyer, Paunonen, Gellatly, Goffin and Jackson, 1989). This implies that employees who are committed will be most likely willing to stay in their organisation. On the other hand, employees who are not committed to their organization are more likely willing to leave the organisations. Many organisations operate in an environment characterised by technological advancement, liberalisation, organisational change and speedy invention of new products and services (Stern, Song and O’Brien, 2004). This environment affects the way business operates. For example in a free labour market employees are not obliged to remain with the same company (Boxall and Purcell, 2003). Training has been useful to prepare employees to adapt to the changing environment (Stern, Song and O’Brien, 2004). This implies that organisations face the challenge to retain their competent labour force (Iles, Mabey and Robertson, 1990). A capable workforce can be very influential in facilitating the organisation to achieve competitive advantage (Pfeffer, 1994), and enables the company to compete in a changing environment. Therefore, for high organizational performance to occur, the available employees need to be committed to the goal and overall mission of the organisation.

An organisation can not perform effectively when employees are not committed to the organisation (Pfeffer, 1994). This is due to the fact that, when employees quit their jobs organisations suffer from decreased productivity which results from insufficient manpower. For this reason, it appears that training is important in facilitating employees’ organisational commitment. Trained employees are more likely to work hard and contribute to the increasing productivity in the organisation (Barret and O’Connel, 2001).

during that time, employees do not work, and thus their output decreases (Green, Felstead, Maythew and Pack, 2000). Apart from the cost associated with the absence of employees at work, the employers incur the costs related to tuition. Therefore, it is important for the organisation to retain the trained personnel. Since organisational commitment is one of the outcomes of training (Sieben, 2005). Committed employees will remain in the organisation enabling the company to earn back the cost invested through training. The organisation gets the return on the investment through increased employees’ output (Valle, Martin, Romero and Dolan, 2000) which is facilitated by increased knowledge and skill as well as behavioural changes.

On the other hand, if employees leave the company after receiving training, the organisation loses the amount of money invested. The loss is caused by the absence of skilled manpower to work, which leads to low productivity. Other expenses are associated with recruitment and selection cost (Cascio and Aguinis, 2005) incurred by the company in finding employees to fill the vacant positions left by the employees who leave the company. It also takes time for the newly employed staff to get acquainted with the work system. Thus turnover after training affects the overall production of the company. Therefore it is necessary to secure employees commitment rather than incurring the expenses mentioned above.

The relationship between training and employees’ organizational commitment has not been extensively researched (Ahmad and Bakar, 2003; Bartlett, 2001). Researchers have been looking at this relationship from different perspectives. For example Al-Emadi and Marquardt (2007) found that individual gains and career advantages of training can influence organisational commitment. Tansky and Cohen (2000) contend that when managers are trained, they get more attached to their companies and develop the willingness to help their subordinates. Opportunity for training and incentive to gain knowledge is connected with organisational commitment (Bartlett, 2001; Ahmad and Bakar, 2003).

Limited attention has been given to investigate the ways and conditions under which training can be used to enhance employees’ organizational commitment. Consequently, little information is available for decision makers and practitioners on how they can use training to win employees commitment. Therefore this study aims at investigating the factors that influence the relationship between training and organisational commitment.

1.1 Objectives

This study aims at complementing the existing literature by bringing together various theoretical contributions and insights from different sources on how and under what conditions training can be used as a strategy to secure employees’ commitment to their organisations. Specifically the study will identify conditions under which there is a positive or negative relationship between training and employee commitment. We will collate and evaluate the process to see how different types of training (general versus firm specific and formal versus informal) influence employees’ organisational commitment. This information is perceived to be instrumental during the planning of training and will facilitate the achievement of the intended positive outcome of training including employees’ commitment. Practitioners, researchers and learners are perceived beneficiary of the results of this study.

1.2 Research questions

We developed the following research questions to guide our study. First, what is the theoretical relationship between employees’ training and their commitment to their organisation? Second, what are the conditions under which training may or may not influence employee commitment? Lastly, in which ways can training be used to improve employees’ commitment?

1.3 Research Methodology

information we used to discuss the relationships between variables chosen for the study. Among these articles 6 publications discussed general versus firm-specific training, 10 papers addressed and distinguished formal versus informal training, and 15 articles discussed the moderating variables (organisational climate). Furthermore, 8 publications provided a discussion on employee organisational commitment, while 6 explored the relationship between training and employee organisational commitment. We provided a summary of our analysis of the literature review in the appendix.

Chapter 2 Literature Review

2.1 Introduction

In this chapter we explain the meaning of training and employees’ organisational commitment and review the literature on how scholars have argued on the relationship between training and employees’ organizational commitment. We address the way different types of training (general versus firm-specific and formal versus informal) contribute to the commitment of the employees. Then, we analyse several variables which mediate the relationship between training and employees organisational commitment and subsequently affect the performance of the organisation.

2.2 Employees’ Commitment

by the employer they become less committed to the organisation (Iles, Mabey and Robertson, 1990).

Employee commitment can be categorized into three elements. According to Meyer and Allen (1991) these include; affective commitment, continuance commitment and normative commitment. This distinction is important because these elements affects the way people feel attached to their organisation and employees experience all the different elements at different levels (Meyer and Allen, 1991). According to Meyer and Allen affective commitment refers to the employees’ psychological adherence and recognition in the organisation. The authors contend that workers who are psychologically bound to their firm remain in the organization because they have a desire to stay. Allen and Meyer (1990) define continuance commitment as the willingness of the employees to remain with the organisation because of a fear to lose the benefits provided by the employer. For example, employees can decide to stay with the organisation because they are aware that there are no available opportunities for them in another organisation. For instance, employees who are less skilled stay because there is little chance for them to get a job somewhere else. Meyer and Allen (1991) state that normative commitment refers to a situation where by employees feel that they are obliged to continue working with the organisation. According to the human capital theory (Lazear, 1998), older workers get paid more than their actual productivity. This will make older employees feel obliged to remain in the firm because they are aware that they earn more than their productivity. Leaving the firm means losing such a privilege.

2.3. Training

Training is defined as planned initiatives by organisations to enhance the knowledge, skills and behaviour of their employees (Noe, Hollenbeck, Gerhart and Wright, 2006). The underlying objective of training is to improve the capability of the workforce and prepare them to attain the goal of the organisation (Armstrong, 2001). Armstrong points out some specific aims of training. These include: advancing the ability and capability of the workforce and raising their productivity; supporting individual career advancement in the organisation and preparing sufficient manpower that the organisation can recruit from inside; ensuring that employees get acquainted with their task immediately after being given a position and ensuring that they become conversant without wasting much time.

The competencies acquired after training are crucial to enable employees become more productive in their job (Noe, 2005). Training is important for organisations to prepare their employees to adapt to the dynamic environment. Technology changes now and then, for instance increasing advancement of information technology (Stern, Song and O’Brien, 2004). Since organisations rely on the information technology in the execution of different tasks, they become obliged to continuously adapt to these changes (Becker and Gerhart, 1996).

2.4 Types of Training

There are several types of training distinguished in the literature. These includes off the job versus on the job training (Lynch, 1991; Roger, Peter and Michele, 1998), general versus firm specific training (Becker, 1964; Dolton and Kidd, 1998; Lazear, 1998) and formal training versus informal training (Rainbird, 2000; Rocheleau, 2001; Stern, Song and O’Brien, 2004). In this paper we focus on the distinction between (general versus firm specific training and formal versus informal training). We chose to examine the distinction of general versus firm specific training for two reasons: First, training provided by many organisations contains both elements of general as well as firm specific training. Second, general and firm specific training affects the commitment of the employees differently. For example, the human capital theory and commitment theory advocate different anticipation of the extent to which general and firm specific training affect employees’ commitment (Sieben, 2005).

Song and O’Brien, 2004), and firms do not get optimal benefits by using only a single method. Rainbird (2000) supports the argument that organisations implement both formal and informal training, contending that organisations provide chances for both formal and informal training. The use of both methods enables the organisation to gain much from training because employees who possess knowledge gained from formal training they can efficiently learn more at work through informal training (Greenberg and Baron, 1993; Wu and Rocheleau, 2001). For example, managers can address well the problem of skill development by using a combination of both formal and informal training (Wu and Rocheleau, 2001). Greenberg and Baron (1993) further explain that when organisations use both formal and informal training, the performance of the employees improves immediately. From this point of view it appears that the performance of employees who attends formal training is also enhanced by informal training at workplace.

Formal training consists of on-the-job and off-the-job programs arranged for the organisation’s employees (Noe, 2005). This type of training is considered formal because it is a deliberately planned process with a specific time schedule. Noe indicates that formal training can involve instructions and seminars conducted by consultants. Informal training is defined as unplanned apprenticeship or teaching facilitated by peers or managers at work (Stern, Song and O’Brien, 2004). Informal training takes place naturally as people perform their work (Van Zolingen, Streumer, De Jong and Van der Klink, 2000). The authors further explain that informal training is not a planned process, it occurs on a daily basis as people learn from one another in the organization. Rainbird (2000) elaborates on the informal training by saying that apart from the provision of knowledge and skills through formal training, there is a possibility of acquiring knowledge through exchange of information at the workplace.

2.4.1 General training

organisations. For this reason, many organisations require their employees to pay for general training by paying them less than their productivity (Dolton and Kidd, 1998; Lazear, 1998). These organisations want their employees to incur the cost of training because they do not want to lose their money by investing in general training if there is a possibility that employees leave the company.

If an organization decides to offer general training, commitment theory predicts that general training will have a positive impact on the retention of the employees (Sieben, 2005). Sieben further explains that employees see general training as a reward, therefore they do not think about leaving the organisation (Sieben, 2005). Employees view general training as a signal of commitment from the part of the employer and it gives them an incentive to feel a sense of belonging to the organisation. Providing general training can win employees’ loyalty (Barret and O’Connell, 2001). Al-Emadi and Marquardt (2007) argue that there is a positive relationship between employees’ feelings about training gains and their attachment to the firm. If employees believe that they are ‘‘insiders’’ it is most likely that they become more productive (Barret and O’Connell, 2001). In view of the above explanations, general training increases the likelihood that employees will become committed to the organisation. Employees perceive that general training provided by the organisation is intended to improve their performance. Such perceptions lead to the development of desirable attitudes including employees’ organisational commitment. Commitment attitude is seen as the appreciation of the employees to their organisation for providing support through training.

On the other hand, the human capital theory (Becker, 1964) predicts that general training can induce workers to start looking for a job outside their organisation (Sieben, 2005). Since general knowledge gained from training can be useful in all firms (Becker, 1964), employees can easily become motivated to look for job in other firms that pays a higher salary. Organisations that do not invest in training opt for other strategies to attract talented employee to join their companies (Lazear, 1998). In most cases, these companies use higher salary packages to induce workers to join their firms. This justifies the common view that general training is a threat to many companies because trained workers do not stay with the organisation until the employers get back their return on investment (Sieben, 2005).

However, the contention that employers compete for qualified and competent employees can not be ignored. If the organisation sticks to the salary scheme without taking into account that increasing pressure on wage is prevalent in the labour market, there is a possibility for trained employees to seek jobs to match their productivity level (Green, Felstead, Maythew and Pack, 2000). This can have serious consequences especially when the trained employees are core employees who are needed by the firm for innovation (Boxall and Purcell, 2003). This means that if the cost of losing key employees who contribute much to the organisation outweighs the cost of matching the salary, the organisation decides to increase the salary in order to retain their employees.

2.4.2 Firm specific training

Becker (1964) defines firm specific training as training that generates knowledge that is useful only at the organization providing the training. This means that such knowledge is not useful in other organisations. Workers who acquire firm specific training can not apply their acquired knowledge to other firms (Lazear, 1998). From the above explanations it appears that firm specific training has positive effects on the commitment of the employees. Since employees can not transfer their acquired knowledge to other organisations, they become encouraged to get more committed to their current organisations.

Employees who possess firm specific knowledge find it difficult to get an organisation that is willing to offer them a higher salary than what they receive at the present organisation (Lazear, 1998). Provided that the employees are aware that firm specific training does not provide them with the opportunity to get a job in another organisation it is most likely that they become induced to be loyal to their organisation. Furthermore, organisations are willing to retain employees who have received firm specific training because they are aware that they pay them less than their worth and yet these employees can not quit because they can not earn more than what they get at the present organisation (Sieben, 2005). The firm takes advantage of the wage implication, they pay the worker less than he/she could be paid compared to his/her productivity (Lazear, 1998).

more attached to their organisations. The awareness that the acquired knowledge is not transferable to another organisation also increases employees’ organisational commitment. Firm specific training is important to enable employee master their job. When employees realise that they are conversant with the job context they feel more committed to their organisation. The human capital theory (Becker, 1964), suggests that organisations benefit from firm specific training. Firm specific training makes employees become loyal to their organisations. Organisations gain from the contributions of the workforce that is loyal and dedicated to work for the organisations. Organisations also increase their profit by reducing the wage bill. This is possible as we mentioned earlier that employees who have received firm specific training are paid less than their productivity (Lazear, 1998).

2.4.3 Formal Training

Formal training is crucial to improve the understanding of ‘‘relevant theory’’ and enable workers to develop critical understanding on how they can solve problems at work (Boxall and Purcell, 2003). Many changes in technology (Stern, Song and O’Brien, 2004) have an impact on the way business operates. Researches often come up with new ways of solving problems under the changing circumstances. Employers need to arrange for training now and then in order to update the knowledge of their employees. For example, the organisation can organise a training program to update the employees on specific management principles. Employers can also arrange a training program to teach their employees on the use of certain type of machine which is newly invented. This training enhances the knowledge ability and skills of the trainees. Employees who believe that they possess the necessary ability to improve their performance are more committed than the ones who believe that they do not have the capacity to perform better (Allen and Meyer, 1997). Therefore, one can say that formal training programs intended for enhancing knowledge will also encourage employees to feel committed to the organisation.

by the employer because of the awareness that there are specific criteria (certificates) used as the ground for making decisions. Such satisfactions also facilitate their commitment to the organisation by anticipating that they can get promoted when there is a vacant position and if they have the required qualifications.

Apart from the availability of planned training programs, individuals are expected to learn continuously at workplaces. Informal training is encouraged to make better business solutions (Boxall and Purcell, 2003). Next we discuss informal training and its impact on employees’ organisational commitment.

2.4.4 Informal Training

Edmondson (1999) points out several examples of actions that take place during informal training. These actions include looking for opinions, recommendations, advice and eagerness for experimentation. The opinions from colleagues and supervisors are very useful to enable employees to make comparison on their actual and expected attitude (Russ-Eft, 2002). Employees value the assistance they get from their colleagues because such assistance facilitates the accomplishment of their tasks. Therefore, employees feel committed to continue working in organisations where there is an atmosphere of helping one another.

Because of the limited time scheduled for formal training, employees do not always have the opportunity to learn by means of reflection. Informal training complements by internalising what is learned during formal training (Wu and Rocheleau, 2001). This helps employees better understand their job and find solutions for customer needs (Edmondson, 1999). This can also increase the organizational commitment of the trained employees.

As a result of experience and information sharing between individuals within the company, employees develop “tacit knowledge” (Nonaka and Takeuchi, 1995). The authors take this a step further and explain that tacit knowledge which is shared through interaction enables employees to come up with new for ideas valuable invention. Therefore, employees acquire the capability to develop new products and services; this makes them more attached to the organisation (Nonaka and Takeuchi, 1995). Trained employees increase commitment to their organization because they become more satisfied if they see the outcomes of their effort.

have a theoretical understanding of particular area of specialisation, but they may not be able to do certain tasks which fall into that area. Therefore, by exchanging information and observing others, employees learn to perform efficiently (Ayas, 1996). Based on the above, one can argue that an atmosphere that facilitates sharing of information can also facilitate trained employees to become committed to their organisation.

2.5 Organisational Climate

Organisational climate refers to the situation in which employees develop a common understanding, views and thoughts about the way the organisation function (Schneider, 1975). Circumstances in the organisational climate can moderate the relationship between training and organisational commitment (Cromwell and Kolb, 2004). Based on the argument made by Cromwell and Kolb one can say that training can contribute to the development of employees’ organisational commitment if the organisational climate supports the trained employees to exhibit commitment.

Organisational climate is a broad construct with many variables. These includes: age, gender, level of education (Ahmad and Bakar 2003; Cheung, 2000), self efficacy, goal orientation and motivation to learn (Tziner, Fisher, Senior and Weisberg, 2007). The components of organisational climate addressed in this paper include: opportunity to perform, supervisors support, peer support and reward system. There are several reasons which lead us to focus on the above moderating variables. First, several articles address these variables as significant predictors of the effectiveness of training (e.g. Al Emadi and Marquardt, 2007; Bartlett, 2001; Cromwell and Kolb, 2004; Garavaglia, 1993). The detailed analysis of the literature which addresses these variables is contained in the appendix. Second, employers can control and manipulate opportunity to perform, supervisors support, peer support, and reward systems (Iles, Mabey, and Robertson, 1990; Russ-Eft, 2002) to ensure that the trained employees are encouraged to become more committed to their organisation. In other words, these factors are within the control of the management who are responsible for training.

because they can not efficiently use their skills gained from training if the organisational climate is not supportive. Employees develop the perception naturally (McLean, 2005) because most of the decisions and policies affect them. Schneider (1975) explains further by saying that employees develop an understanding about their environment that is important in guiding their behaviour. Therefore, it is important to take into account the impact of organisational climate on the relationship between training and employees’ organisational commitment. One can expect training to lead to employee commitment if the organisational climate is conducive for encouraging employees.

2.5.1 Opportunity to perform

Training will only result in improved commitment if employees can put into practice what they have learned (Heyes, 1996). Therefore, when employees put into practice what they have learned during the training they will realise their output. The outcome of training motivates the employees to increase their attachment to the organisation (Ahmad and Bakar, 2003). We mentioned earlier that training is used to solicit employees’ organizational commitment. Nevertheless, the effectiveness of training depends on whether the trainees are provided with the opportunity to practice what they have acquired during the training (Tziner, Fisher, Senior and Weisberg, 2007). In view of the above, one can argue that if the trained employees are not provided with the opportunity to practice their acquired skills (Russ-Eft, 2002) the outcome of training including employees’ organisational commitment can not be realised. The awareness that the organisation benefits from employees input increases the personal satisfaction of an employee and leads to higher commitment (Meyer and Allen, 1997).

argument above, it is anticipated that trained employees who are creative are more likely to become committed to their organization.

It is most likely that some organisations have not been concerned to find out if supervisors provide inspiration and support for employees to apply their knowledge acquired from training to accomplishment of organisational goals (Heyes, 1996). They do not give employees support and tools to which can facilitate learning (Antonacopoulou, 2001). For example, training can not result in commitment if the organisation does not provide a ‘‘functioning technology’’ to be used for the execution of work (Boxall and Purcell, 2003). For instance, employees can attend a training course to learn how to use a specific computer programme. The organisation might not have sufficient computers for all the employees who need computers to practice their skills. This hinders the trainee’s opportunity to practice. It may also delay the work processes especially if several employees need to share the available computer. This situation may affect the overall productivity and discourage employees to get more committed to their organisation.

2.5.2 Supervisor’s support

Supervisor’s support refers to the extent to which supervisors insist on the advantages of training and the condition under which actual application of skills and knowledge is encouraged (Noe, 2005; Russ-Eft, 2002). Supervisors have to help trained employees determine the learning objectives, discuss how they can best put the knowledge gained into practice and make clear what is expected of them after training (Russ-Eft, 2002). Learning is mentioned here because after training employees are expected to learn and the learning process can determine training outcome (Tziner, Fisher, Senior and Weisberg, 2007) such as employees’ organizational commitment. Immediate supervisors who support their employees create an atmosphere of trust (Boselie, Hesselink, Paauwe and Van der Wiele, 2001), which is translated into development of commitment for the trained employees.

between supervisors and employees; they can meet often times to review the progress on what they have planned and see whether they have achieved what they planned. The communication can provide a better opportunity for employees to report whether they are encountering difficulties in implementing the knowledge and skills; therefore both (supervisor and employee) work together to find solutions for problems. Therefore, action plans create an atmosphere that facilitates training to lead to the development of employees’ organisational commitment. Employees’ commitment increases because action plans provide assurance that supervisors are ready to provide support and helping employees make better performance. Action plan after training is important (Russ-Eft, 2002) because it helps trained employees to efficiently put into practice the gained knowledge. Because action plan provides guidance for the trained employees to practice their skills, it contributes to development of clear goals for the employees which can affect the effectiveness of training (Tziner, Fisher, Senior and Weisberg, 2007). This, in turn, will facilitate employees’ organizational commitment, because employees who think that they have much to contribute to the organisation are the ones who are most committed ((Meyer, Paunonen, Gellatly, Goffin and Jackson, 1989)

2.5.3 Peer support

Human beings learn by imitating from people around them (Cascio and Aguinis, 2005). This can occur naturally as individuals interact at the workplace, but employers can also make necessary arrangements such as assigning an experienced worker to teach a newly employed staff member to perform a specific task. Trained employees are supported by their peer to continue learning which increase their communication skills (Whitfield, 2000). Therefore it appears that peer support creates an atmosphere in which employees communicate more effectively. From this point of view it is anticipated that peer support enhances the commitment of the employees because it opens possibilities of sharing information for improving their work. Employees can help each other by exchanging ideas on how they can better implement the knowledge and skills which they have acquired through training (Noe, 2005). Noe points out the means by which this can be achieved, he argues that employees can communicate and share their experience on how they can utilize the acquired knowledge after training.

(Edmondson, 2002). For example, employees can arrange group meetings in which they plan and discuss what they want to achieve. They can also discuss means to utilise the knowledge obtained through training. Meetings are open for questions and elaborations of issues that seem to be not clear for everyone. Employees can have the opportunity to gain knowledge that emanates from different specialities and thus improve the scope of understanding. Employees acquire different skills by learning from other members in teams. This enhances the ability to do many jobs and increases their flexibility. Therefore, it is possible for the employer to increase the responsibilities in ones (employee) job description. As a result of this, employees feel motivated to do their job and later increase the commitment toward the organisation.

2.5.4 Reward system

The efforts made by organisations to motivate workers are considered as rewards (Bau and Dowling, 2007). Therefore challenging work, good salary and promotions can motivate workers (Skule, 2004) and they are regarded as rewards that are useful in influencing the relationship between training and employee commitment. A reward system is effective in changing and maintaining desirable behaviour (Cascio and Aguinis, 2005). Therefore, it appears that reward system can also be useful to encourage trained employees to elicit desirable attitudes such as commitment towards their organisation. Rewards bring a positive message to the employees that they have done their job well and encourage them to reiterate or improve their behaviour (Cascio and Aguinis, 2005). They further explain that punishment can control employees not to act in an undesirable manner but it does not encourage them to change their behaviour. Employers can identify employees who have improved their performance after training and reward them accordingly. This communicates to the employees that the organisation recognizes their effort. Therefore rewards encourage trained employees to increase their commitment (Ahmad and Bakar, 2003).

practical for organisations to think about increasing remuneration during and after training in order to encourage their employees to elicit commitment.

However, many organisations pay low salaries; their conception is that less salary minimizes the labour cost (Pfeffer, 1994). Pfeffer calls this the weak assumption, because labour cost can be higher if trained employees are not committed and when they do not perform at the desirable level. Furthermore, low salary affects employees’ commitment especially when they realise that they are not paid according to their productivity. Uncommitted employees can also be more costly to the organisation because they do not deliver at a desirable level. In view of the above explanations, it is logical for employers to take into account the importance of labour productivity when they are planning for salaries. Low salary can make trained employees think that they are not rewarded accordingly; they can also be easily taken away by other firms who do not invest in training (Schone, 2004).

Good salary is necessary but not sufficient to keep the trained employees motivated and committed, things like identification and acknowledgment of good performers is of great value (Pfeffer, 1994). Based on the above argument it seems that training can lead to increased employees organisational commitment if trained employees who perform well are recognised by their employers. On the other hand employees’ commitment may decrease if their skills gained on training are underutilised by being assigned simple, routine and monotonous jobs (Valle, Martin, Romero and Dolan, 2000). Employers need to ensure that the trained employees are provided with challenging work to utilise their skills (Tziner, Fisher, Senior and Weisberg, 2007). Since Bau and Dowling (2007) argue that the initiatives made by employers to motivate employees are considered as rewards, therefore tasks which match the skill level is considered as reward. However, companies tend to train their employees but they do not change the job functions to allow people put into practice what they have learned from training (Pfeffer 1994). If companies do not change the responsibilities that are assigned to the employees since they joined the company, then, training can not lead to improved performance (Pfeffer, 1994) which can also affect the commitment of the trained employees.

organisations where there are opportunities to develop their career. Cascio and Aguinis (1995) stress their point by saying that employees should consider first the efficient utilization of the available manpower. The organisation will secure the commitment of the employees by considering first the applicant from within the organisation. Additionally, training is important to prepare employees to fill vacant positions available in the organisation. Provided that the employees have the skills and knowledge required to fill various positions. The company will benefit from the retention of the qualified staff that is committed to the well being of the company.

From our literature analysis and the identified variables, we developed our research model to guide an understanding of the relationship between training and employee organisational commitment. The diagram below provides the conceptual framework showing the relationships between training and employees’ organisational commitment.

2.6 Research model

Figure: Training-commitment-performance relationship. Types of training

Discussion

In this study, we investigated the relationship between training and employee’ organisational commitment. We identified four types of training (general versus firm specific and formal versus informal) and discussed their influence on facilitating employees’ organisational commitment. We also identified four organisational climate variables (opportunity to perform, supervisors support, peer support and reward system) and discussed the way they moderate the relationship between training and employees organisational commitment. The results reveal that both general and firm-specific training are important for facilitating employee commitment. We found that general training is perceived by employees as a gift, thus when employers provide it they can win employees commitment. On the other hand, the results show that general training may lead to turnover. This is due to the fact that the knowledge created is useful in many organizations. However, employers can combine general training with other human resource management strategies such as reward system to retain their trained employees. Furthermore the results from the literature review indicate that firm specific training creates knowledge and skills that can not be transferred to other organisations. The knowledge gained by employees will in that case only be useful at the organisation which provides the training. Therefore, employees who have acquired firm specific knowledge increase their willingness to remain with their organisation because their skills are valuable. This implies that the organisation benefits by retaining their trained employees (Hand, Richards and Slocum Jr, 1973) who are committed to their organizations.

facilitate the commitment of the employees, it is useful to combine them in order to elicit employees’ organisational commitment.

Furthermore, the findings indicate that organisational climate determines the extent to which training influences employee organisational commitment. Basing on the argument made by Cromwell and Kolb (2004) that organisational climate moderates the relationship between training and employees commitment, it seems that training will lead to employees’ organisational commitment if the organisational climate is supportive of the employees. Therefore it is important to take into account the impact of opportunity to perform, supervisors support, and peer support and reward system in facilitating training to enhance employees’ commitment.

The implication of this study is that training can not be treated as an independent human resource practice. This is due to the fact that integrating training and other human resource practices is important (Becker and Gerhart 1996; Boxall and Purcell, 2003; Pfeffer, 1994) and can facilitate training on winning employees organisational commitment. The results suggest that rewarding employees by giving them challenging work and a competitive salary are useful to incite trained employees to enhance their organisational commitment. Promotion can also be useful to motivate the trained employees to remain with the company (Dolton and Kidd, 1998). In this way the organisation will maintain the capability of the employees (Pfeffer, 1994). Pfeffer argues that it takes time to build the capability of the workforce which is difficult for others to copy, and this enables the company to gain competitive advantage. Therefore creating competent and committed employees through training contributes to the performance of the organisation.

committed to their organisation by creating an organisational climate that encourages the trained employees to have necessary information required for improvement of the job (Cheung, 2000).

Conclusion

In view of the literature review discussed above, we conclude that there is a positive relationship between training and employees’ organisational commitment (Bartlett, 2001; Tansky and Cohen, 2000). The types of training identified (general versus firm specific and formal versus informal) seem to have a significance influence in facilitating employees’ organisational commitment. Furthermore, the identified moderating variables (opportunity to perform, supervisors support, peer support and reward system) found to be decisive in determining the relationship between training and employees organisational commitment. Therefore, training enhances employees organisational commitment if trained employees are given an opportunity to perform and their supervisors provides support to ensure that they can efficiently utilise their skills. Furthermore, training enhances employees’ organisational commitment if trained employees are supported by peers to continue learning at workplace. Trained employees become more committed to their organisation if they are provided with rewards to motivate and encourage them to remain with their organisation. Training influences employees’ organisational commitment if the organisational climate supports the trained employees to become committed to their organization.

Strengths, limitations and directions for future research

and employees organisational commitment are deliverables of employees’ commitment (Cromwell and Kolb, 2004; Garavaglia, 1993). Therefore, moderating variables chosen are critical in facilitating the relationship between training and employees’ organisational commitment. Furthermore, by identifying and analysing these moderating variables, we have provided an understanding of the context in which trained employees work (McLean, 2005), which provides information on how training can be used to enhance employees organisational commitment. This information is perceived to be influential for both researchers and organizations because they are interested to discover the elements that affect the effectiveness of training (Tziner, Fisher, Senior and Weisberg, 2007).

References

Ahmad, K.Z., and Bakar, R.A. 2003. The association between training and organisational commitment among white collar workers in Malaysia.

International Journal of training and development, 7(3): 166-185.

Al-Emadi, M. A., and Marquardt, M.J. 2007. Relationship between employees’ beliefs regarding training benefits and employees’ organisational commitment in a petroleum company in the state of Qatar. International Journal of training and

development, 11(1): 49-70.

Allen, N.J., and Meyer, J.P. 1990. The measurement of antecedents of affective, continuance and normative commitment to the organisation. Journal of

occupational Psychology, 63: 1-18.

Armstrong, M. 2001: A handbook of human resource management and practice. London. Kogan Page Limited.

Antonacopoulou, E. P. 2001. The paradoxical nature of the relationship between training and learning. Journal of Management Studies, 38 (3): 327-350.

Ayas, K. 1996. Design for learning for innovation. Delft: Eburon Publishers.

Bandura, A. 2001. Social cognitive theory: An agent perspective. Annual Review of

Psychology, 52: 1-26.

Barret, A and O’connel, P. J. 2001. Does training generally work? The returns to in-company training. Industrial and Labor Relations Review, 54(3): 647-662.

Bartlett, K. R. 2001. The relationship between training and organisational commitment: A study in the health care field. Human Resource Development

Quarterly, 12(4): 335-352.

Bau, F. and Dowling, M. 2007. An empirical study of reward and incentive system in German entrepreneurial firms. Schmalenbach Business Review, 59(2): 160-175. Becker, G.S. 1962. Investment in human capital: A theoretical analysis. The Journal

of Political Economy, 70(5): 9-49.

Becker, G.S. 1964. Human capital: A theoretical and empirical analysis, with special

reference to education. New York: National Bureau of Economic Research.

Becker, B., and Gerhart, B. 1996. The impact of human resource management on organizational performance: Progress and prospects. Academy of Management

Boselie, P., Hesselink, M., Paauwe, J. and Van der Wiele, T. 2001. Employee perception on commitment oriented work systems: Effects on trust and perceived job security. Rotterdam. Erasmus Research Institute of Management.

Boxall, P., and Purcell, J. 2003, Strategy and human resource management:

Management work & organisations. New York: Palgrave Macmillan.

Cascio, W.F., and Aguinis, H. 2005. Applied psychology in human resource

management. New Jersey: Pearson Prentice hall.

Cheung, C. 2000. Commitment to the organisation in exchange for support from the organisation. Social behavior and personality, 28(2): 125-140.

Cromwell, S.E., and Kolb, J.A. 2004. An examination of work-environment support factors affecting transfer of supervisory skills training to the workplace. Human

resource development quarterly, 15(4): 449-471.

Coffield, F. 2000. The necessity of informal learning: The learning society. Bristol. The Policy Press.

Dolton, P.J., and Kidd, M. P. 1998. Job changes, occupational mobility and human capital acquisition: An empirical analysis. Bulletin of Economic Research, 50(4): 0307-3378.

Edmondson, A. 1999. Psychological safety and learning behavior in work teams.

Administrative Science Quarterly, 44(2): 350-383.

Edmondson, A.C. 2002. The local and variegated nature of learning in organisations: A group level perspective. Organisational Science, 13(13): 128-146.

Garavaglia, P.L. 1993. How to ensure transfer of training. Training & Development, 47(10): 63-68.

Green, F., Felstead, A., Maythew, K., and Pack. A. 2000. The impact of training on labour mobility: Individual and firm-level evidence from Britain. British Journal

of Industrial relations, 38(2): 261-275.

Greenberg, J., and Baron, R.A. 1993. Behaviour in organisations. Boston. Allyn and Bacon.

Hand, H.H., Richards, M.D., and Slocum Jr, J.W. 1973. Organizational climate and the effectiveness of a human relations training program. The Academy of

Management Journal, 16(2):185-195.

Heyes, J. 1996. A formula for success? Training, reward and commitment in a chemicals plant. British Journal of industrial relations, 34(3): 351-369.

Lafferty, G and Roan, A. 2001. Public sector outsourcing: Implications for training and skills. Employee Relations, 22(1): 76-85.

Lazear, E. M. 1998. Personnel economics for managers. New York: Wiley.

Lynch, L. M. 1991. The role of off-the-job vs on-the-job training for the mobility of women workers. The American Economic Review, 81(2): 151-156.

Karl, K.A., O’Leary-Kelly, A.M., and Martocchio, J.J. 1993. The impact of feedback and self-efficacy on performance in training. Journal of Organizational behavior, 14(4): 379-394.

McLean, L. D., 2005. Organizational cultures’s influence on creativity and innovation: A review of the literature and implication for human resource development. Advances in developing human resources, 7(2): 226-246.

Meyer, J.P., and Allen, N.J. 1991. A three-component conceptualization of organizational commitment. Human Resource Management Review. 1(1): 61-89. Meyer, J.P., and Allen, N.J 1997. Commitment in the workplace: Theory research

and application. California: Sage Publications.

Meyer, J.P., Paunonen, S.V., Gellatly, I.R., Goffin, R.D., and Jackson, D.N. 1989. Organisational commitment and job performance: It’s the nature of commitment that counts. Journal of applied Psychology, 74(1): 152-156.

Noe, R. A. 2005. Employee training and development. New York: McGaw-Hill. Noe, R. A, Hollenbeck, J.R., Gerhart, B and Wright, P.M. 2006. Human resource

management: Gaining a competitive advantage. New York: McGraw-Hill.

Nonaka, I., and Takeuchi, H. 1995. The knowledge-creating company: How Japanese

companies create the dynamics of innovation. New York: Oxford University

Press.

Pfeffer, J. 1994. Competitive advantage through people: Unleashing the power of

the workforce. Boston. Havard Business School Press.

Rainbird, H. 2000. Training in the workplace: Management, work and

organisations. London. Macmillan Press Ltd.

Rasker, P.C., Post, W.M., and Schraagen, M.C. 2000. Effects of two types of intra team feedback on developing a shared mental model in command and control teams. Ergonomics, 43(8): 1167-1189.

Riding, R., and Mortimer, J. 2000. A study of the on-the-job training of production line operatives in manufacturing companies. International journal of training

Roger, H., Peter, W., and Michele, S. 1998. Learning the job: Juggling the messages

in on-and off-the-job training. South Australia. National Centre for Education

Research.

Russ-Eft, D. 2002. A typology of training design and work environmental factors affecting workplace learning and transfer. Human resource development review, 1(1): 45-65.

Saks, A.M., and Belcourt, M. 2006. An investigation of training activities and transfer of training in organisations. Human Resource Management, 45(4): 629-648. Schneider, B. 1975. Organizational climates: An essay. Personnel psychology, 28:

447-479.

Schone, P. 2004. Firm financed training: Firm specific or general skills? Empirical

Economics, 29: 885-900.

Sieben, I. 2005. Does training trigger turnover or not? The impact of formal

training on young men’s and women’s job search behaviour. Maastricht:

Research centre for education and the labour market.

Skule, S. 2004. Learning condition at work: a framework to understand and assess informal learning in the workplace: International journal of training and

development, 8(1): 8-20.

Stern, D., Song, Y., and O’Brien, B. 2004. Company training in the United States 1700-200: What have been the trends over time? International journal of

training and development, 8(3): 191-209.

Tansky, J.W., and Cohen, D. J. 2001. The relationship between organisational support, employee development, and organisational commitment: An empirical study. Human Resource Development Quarterly, 12(3): 285-300.

Tziner, A., Fisher, M., Senior, T., and Weisberg, J. 2007. Effects of trainee characteristics on training effectiveness. International Journal of selection and

assessment, 15(2): 167-174.

Valle, R., Martin, M., Romero, P. M., and Dolan, S.M. 2000. Business strategy, work processes and human resource training: Are they congruent? Journal of

organizational behaviour, 21(3): 283-297.

Van Zolingen, S.J.,Streumer, J.N., De Jong, R., and Van der Klink, M.R. 2000. Implementing on -the- job training: critical success factors. International journal

of training and development, 4(3): 208-216.

Wholey, D.R. 1990. The effects of formal and informal training on tenure and mobility in manufacturing firms. The Sociological Quarterly, 31(1): 37-57.

Appendix

sn Variables Author(s)

1. General versus firm specific training

Barret, A and O’connel, P. J. 2001. Does training generally work? The returns to in-company training. Industrial and

Labor Relations Review, 54(3): 647-662.

Becker, G.S. 1962. Investment in human capital: A theoretical analysis. The Journal of Political Economy, 70(5): 9-49.

Green, F., Felstead, A., Maythew, K., and Pack. A. 2000. The impact of training on labour mobility: Individual and firm-level evidence from Britain. British Journal of

Industrial relations, 38(2): 261-275.

Sieben, I. 2005. Does training trigger turnover or not? The

impact of formal training on young men’s and women’s job search behaviour. Maastricht: Research centre for

education and the labour market.

Schone, P. 2004. Firm financed training: Firm specific or general skills? Empirical Economics, 29: 885-900.

Wholey, D.R. 1990. The effects of formal and informal training on tenure and mobility in manufacturing firms.

The Sociological Quarterly, 31(1): 37-57.

2. Formal versus informal training

Ahmad, K.Z., and Bakar, R.A. 2003. The association between training and organisational commitment among white collar workers in Malaysia. International Journal

of training and development, 7(3): 166-185.

Al-Emadi, M. A., and Marquardt, M.J. 2007. Relationship between employees’ beliefs regarding training benefits and employees’ organisational commitment in a petroleum company in the state of Qatar. International

Journal of training and development, 11(1): 49-70.

theoretical analysis. The Journal of Political Economy, 70(5): 9-49.

Garavaglia, P.L. 1993. How to ensure transfer of training.

Training and Development, 63-68.

Riding, R., and Mortimer, J. 2000. A study of the on-the-job training of production line operatives in manufacturing companies. International journal of training and

development, 4(2): 111-123

Sieben, I. 2005. Does training trigger turnover or not? The

impact of formal training on young men’s and women’s job search behaviour. Maastricht: Research centre for

education and the labour market.

Stern, D., Song, Y., and O’Brien, B. 2004. Company training in the United States 1700-200: What have been the trends over time? International Journal of training and

development, 8 (3)191-209.

Van Zolingen, S.J.,Streumer, J.N., De Jong, R., and Van der Klink, M.R. 2000. Implementing on -the- job training: critical success factors. International journal of training

and development, 4(3): 208-216.

Wu, L., and Rocheleau, B. 2001. Formal versus informal end user training in public and private sector organisations.

Public performance & Management review, 24(4):

312-321.

Wholey, D.R. 1990. The effects of formal and informal training on tenure and mobility in manufacturing firms.

The Sociological Quarterly, 31(1): 37-57.

3. Moderating organisational climate variables − Opportunity to perform − Supervisor(s) support − Peer Support − Reward system

Ahmad, K.Z., and Bakar, R.A. 2003. The association between training and organisational commitment among white collar workers in Malaysia. International Journal

of training and development, 7(3): 166-185.

and employees’ organisational commitment in a petroleum company in the state of Qatar. International

Journal of training and development, 11(1): 49-70.

Antonacopoulou, E. P. 2001. The paradoxical nature of the relationship between training and learning. Journal of

Management Studies, 38 (3): 327-350.

Bartlett, K. R. 2001. The relationship between training and organisational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4): 335-352.

Boselie, P., Hesselink, M., Paauwe, J. and Van der Wiele, T. 2001. Employee perception on commitment oriented

work systems: Effects on trust and perceived job security. Rotterdam. Erasmus Research Institute of

Management.

Cheung, C. 2000. Commitment to the organisation in exchange for support from the organisation. Social

behavior and personality, 28(2): 125-140.

Cromwell, S.E., and Kolb, J.A. 2004. An examination of work-environment support factors affecting transfer of supervisory skills training to the workplace. Human

resource development quarterly, 15(4): 449-471

Edmondson, A. 1999. Psychological safety and learning behavior in work teams. Administrative Science

Quarterly, 44(2): 350-383.

Garavaglia, P.L. 1993. How to ensure transfer of training.

Training & Development, 63-68.

Iles, P., Mabey, C., Robertson, I. 1990. HRM practices and employee commitment: Possibilities, pitfalls and paradoxes. British Journal of Management. 1: 147-157. Russ-Eft, D. 2002. A typology of training design and work

Saks, A.M., and Belcourt, M. 2006. An investigation of training activities and transfer of training in organisations.

Human Resource Management, 45(4): 629-648.

Schneider (1975) Schneider, B. 1975. Organizational climates: An essay. Personnel psychology, 28: 447-479. Skule, S. 2004. Learning condition at work: a framework to

understand and assess informal learning in the workplace:

International journal of training and development, 8(1):

8-20.

Wu, L., and Rocheleau, B. 2001. Formal versus informal end user training in public and private sector organisations.

Public performance & Management review, 24(4):

312-321.

4 Employee organisational commitment

Ahmad, K.Z., and Bakar, R.A. 2003. The association between training and organisational commitment among white collar workers in Malaysia. International Journal

of training and development, 7(3): 166-185.

Allen, N.J., and Meyer, J.P. 1990. The measurement of antecedents of affective, continuance and normative commitment to the organisation. Journal of occupational

Psychology, 63: 1-18.

Bartlett, K. R. 2001. The relationship between training and organisational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4): 335-352.

Cheung, C. 2000. Commitment to the organisation in exchange for support from the organisation. Social

behavior and personality, 28(2): 125-140.

Iles, P., Mabey, C., Robertson, I. 1990. HRM practices and employee commitment: Possibilities, pitfalls and paradoxes. British Journal of Management. 1: 147-157. Meyer, J.P., Paunonen, S.V., Gellatly, I.R., Goffin, R.D., and

Table: Summary of analysis of the literature review

performance: It’s the nature of commitment that counts.

Journal of applied Psychology, 74(1): 152-156.

Meyer, J.P., and Allen, N.J. 1991. A three-component conceptualization of organizational commitment. Human

Resource Management Review. 1(1): 61-89.

Sieben, I. 2005. Does training trigger turnover or not? The

impact of formal training on young men’s and women’s job search behaviour. Maastricht: Research centre for