Effectiveness of Human Resource Development on Employeesshodhganga.inflibnet.ac.in/bitstream/10603/28552/15/15...Chapter V Effectiveness of Human Resource Development on Employees

Chapter V

Effectiveness of Human Resource

Development on Employees

5.1 Introduction

Organizations are human-made entities that rely on human expertise to

establish and achieve its goals. Human expertise is developed and maximized

through human resource development processes and should be done for the

mutual long-term or short-term benefits of the organization and the individual

involved. HRD professionals are advocates of individuals and the group, work

process and organizational integrity.

HRD is a very large field of practice and a relatively young discipline.

It is deeply concerned with developing and exploring expertise and with the

dynamic issues of individual and organisational change. It deals with

development and up gradation of human capital.HRD is a process for

developing human expertise through organization development and personnel

training and development for the purpose of improving performance. It tries to

bring about qualitative changes in human capital in accordance with the needs

of the organization and corporate objectives. It tries to mould the organization

as per requirements.

Con

ten

ts

5.1 Introduction

5.2 Human resource development and the employees

5.3 Data analysis

References

HRD is a set of systematic and planned activities designed by an

organization to provide its members with the necessary skills to meet current

and future job demands.

5.2 Human resource development and the employees

Human Resources Development is a theoretical framework for the

expansion of human capital within an organization through the development of

both the organisation and the individual to attain performance enhancement.

Adam Smith states that, “the capacities of individuals depended on their

access to education”. The same statement applies to organisations themselves,

that it requires a much broader field to cover both the areas.

Human Resource Development is the integrated use of training,

organisation, and career development efforts to improve individual, group and

organizational effectiveness. HRD develops the key competencies that enable

individuals in organisations to perform current and future jobs through

planned learning activities. Groups within organisations use HRD to initiate

and manage change. Also, HRD ensures a match between both individual and

organizational needs.

5.3 Data analysis

The study aims at analyzing the effect of human resource development

on overall employee development. For the study, the researcher considers

three variables which are considered as the basic components of human

resource development namely individual development, career development

and organizational development. A questionnaire containing 34 questions at

5 point likert scale is designed to measure the effectiveness of human resource

development on employee development. A clear-cut goal is the most essential

step to get started on designing a questionnaire. This step involves the

planning before undertaking the project. One has to look into important issues

to be covered and ensure that continuity is maintained. Hence, the researcher

gets to know what he is planning to observe through the questionnaire to reach

a conclusion. The questions should then be framed keeping this goal in mind.

A newly designed questionnaire has to test the developed instruments for the

consistency and viability by satisfying the scale refinement and validation.

The statistical analysis comprised of two stages. In the first stage, the

descriptive statistics of the measurement items are examined and assessed for

the reliability and validity of the measure used in this study. In the second

stage, the proposed research model is tested and this involved assessing the

contributions and significance of the manifest variables path coefficients.

5.3.1 Demographic profile of the respondents

The sample size consists of 250 respondents, 150 respondents from

workers, 25 from supervisors and 75 respondents from executives. Table 5.1

indicates the categorization of respondents based on their status in the

company.

Table 5.1

Category of respondents

Category Numbers Percentage

Worker 150 60.0

Supervisor 25 10.0

Executive 75 30.0

Total 250 100.0

Source: Primary data

Figure 5.1 shows that out of the total respondents, 60% belongs to the

worker category; whereas supervisors constitute 10% and executives

constitute the remaining 30% respondents. The composition of the sample is

almost a representation of the universe.

Figure 5.1

Structure of the respondents

Worker

60%Supervisor

10%

Executive

30%

Respondent profile

Source: Primary research data

Figure 5.1 indicates that workers constitute majority respondents,

perfectly and proportionately representing the universe of the study. The

researcher also included sufficient number of supervisors as well executives

for the study as the concept of HRD is significantly relevant in their case too.

The age-wise composition of the respondents is given in the Table 5.2.

The age of the respondents are classified under four equal classes ranging

between 26 to 60 years.

Table 5.2

Age-wise characteristics of the respondents

Age Workers Supervisors Executives Total

26-35 Numbers 7 0 15 22

% 4.7% 0% 20.0% 8.8%

36-45 Numbers 37 4 9 50

% 24.7% 16.0% 12.0% 20.0%

46-55 Numbers 55 16 13 84

% 36.7% 64.0% 17.3% 33.6%

56 & above Numbers 51 5 38 94

% 34.0% 20.0% 50.7% 37.6%


Table 5.2 shows that 4.7% of the workers and 20% of the executives

have their age between 26 and 35 and 24.7% of the workers, 16% of the

supervisors and 12% of the executives belong to the age group of 36-45. The

distribution of the workers, supervisors and executives in the age group of 46-

55 are 36.7%, 64% and 17.3% respectively. 34% of the workers, 20% of the

supervisors and 50.7% of the executives have their age more than 56 years.

Figure 5.2 indicates that majority of the workers are above the age of

45 years whereas the majority of the supervisors belongs to the age category

46-55. Most of the executives who constitute the sample belong to the age

group 56 and above.

Figure 5.2 also states that 38% of the respondents belong to age class

of 56 and above and 33% belong to 46-55. It is 20% in the case of 36-45

category and only 8% in the category of 26-35. The age-wise composition is a

true representation of the universe also.

Figure 5.2

Age-wise classification of respondents

26-35 36-45 46-55 56 & above

7

37

5551

04

16

5

15

913

38

Age

Worker Supervisor Executive


Table 5.3 shows that 82.4% of the respondents are male and the

remaining 17.6% only constitutes female employees. An average

representation of 80% and above can see for all categories of male employees

but it is only 12% among female supervisors, 14.7% among female executives

and 20% among female workers.

Table 5.3

Gender-wise characteristics of the respondents

Gender Worker Supervisor Executive Total

Male

Numbers 120 22 64 206

% 80.0% 88.0% 85.3% 82.4%

Female

Numbers 30 3 11 44

% 20.0% 12.0% 14.7% 17.6%


Male employees constitute major portion of employment in Hindustan

Newsprint Limited. Figure 5.3 show that female workers constitute 20% of

total respondents from the worker category, 12% from the supervisor category

and 14.67% from the executive category respectively.

Figure 5.3

Gender-wise classification of respondents

0

50

100

150


120

22

64

30

3 11

No

. o

f re

sp

on

de

nts

Gender

Male Female


Table 5.4 shows that 71.2% of the respondents have an experience

more than 21 years in the company. It indicates the probability for a mature

response from the respondents emanated from rich experience and exposure in

their employee life. Anyhow, the sample constitutes 8% and 20.8% employees

who have experience below 10 years and 20 years respectively. Since fresh

appointments are rare in the company, the sample may not have proper

representation for less experienced employees. This is apparent in the case of

supervisors that they have no representation at all from this category.

Table 5.4

Experience-wise characteristics of the respondents

Experience Worker Supervisor Executive Total

Less than or

equal to 10

years

Numbers 5 0 15 20

% 3.3% 0% 20.0% 8.0%

11-20 years Numbers 35 4 13 52

% 23.3% 16.0% 17.3% 20.8%

21-30 years Numbers 70 12 5 87

% 46.7% 48.0% 6.7% 34.8%

Above 30

years

Numbers 40 9 42 91

% 26.7% 36.0% 56.0% 36.4%


From the Table 5.4, it is clear that around half of the workers and

supervisors have an experience of 21-30 years whereas more than half of the

executives have an experience above 30 years.

Figure 5.4

Experience-wise classification of respondents

0

20

40

60

80

Less than or equal to

10 years

11-20 years 21-30 years Above 30 years

5

35

70

40

0 412 9

15 135

42

No

. o

f re

sp

on

de

nts

Experience



Figure 5.4 shows that almost all the workers and supervisors

have an experience ranging between 11 to 30+ years. At the same time there

are junior executives who are experienced below 10 years as well senior

executives who are experienced more than 30 years.

Table 5.5 reveals that 62% of the workers have an educational

qualification of matriculation, 8.7% have a diploma, 19.3% have a graduation,

9.3% have P.G. in some discipline and a worker has a degree in Law. It is to

be noted that 32% of the supervisors have a diploma degree and remaining

68% are graduated. 8% of the executives have a diploma degree, 28% are

graduates in engineering, 40% have a graduation in some discipline and 24%

have a post graduate degree in management.

Table 5.5

Educational qualifications of respondents

Educational

Qualification Worker Supervisor Executive Total

Matriculation Numbers 93 0 0 93

% 62.0% 0% 0% 37.2%

Diploma Numbers 13 8 6 27

% 8.7% 32.0% 8.0% 10.8%

Graduation in

Engineering

Numbers 0 0 21 21

% 0% 0% 28.0% 8.4%

Graduation in

Law

Numbers 1 0 0 1

% 0.7% 0% 0% 0.4%

Any other

graduation

Numbers 29 17 30 76

% 19.3% 68.0% 40.0% 30.4%

Post Graduation

in Management

Numbers 0 0 18 18

% 0% 0% 24.0% 7.2%

Any other PG Numbers 14 0 0 14

% 9.3% 0% 0% 5.6%


It is evident from Figure 5

additional qualification related to their area of operation. All the supervisors

have a graduation or at least a diploma degree. Among the executives, 28% of

the executives have a degree in engineering, 40% have graduat

discipline and 28% have post graduate degree in management.



Figure 5.5 thus indicates that the employees in the company are well

educated to meet their role

graduation in some discipline irrespective of the job requirement.

93

13

0

8

0

6

0

10

20

30

40

50

60

70

80

90

100

Matriculation Diploma

It is evident from Figure 5.5 that 38% of the workers have some



the executives have a degree in engineering, 40% have graduation in some

discipline and 28% have post graduate degree in management.

Figure 5.5




educated to meet their role efficiently. 86.67% of the employees have at least a

graduation in some discipline irrespective of the job requirement.

0 1

29

0

14

0 0

17

06

21

0

30

18

Graduation in

Engineering

Graduation in

Law

Any other

graduation

PG in

Management

Any other PG


.5 that 38% of the workers have some



ion in some


efficiently. 86.67% of the employees have at least a

14

0 0

Any other PG

5.3.2 Organization chart of the company

George R. Terry defines organisation chart as, “a diagrammatical

form which shows important aspects of an organisation, including the major

functions and their respective relationships, the channels of supervision and

the relative authority of each employee who is charge of each respective

function”.

It is the diagrammatic representation of the organisation structure

of the company. Such chart indicates the inter relation of the various

departments on the basis of authority and responsibility. It is the blue print of

the organisation. It indicates the number and types of departments, superior-

subordinate relationships, chain of command and communication.

A well structured organisation chart provides:

• Complete information to understand character of the organisation

• Clarity in executive action and organisational relationships

• Clear picture of the organisation to all concerned including outsiders

• Detailed knowledge about types of departments, superior-subordinate

relationships, chain of command and communication and job titles of

each employee

• Familiarization of training procedure

• A starting point for planning the organisational changes after having

identifying the weaknesses of the existing structure

• A ready reference

• Proper guidance to all by fixing assignments and avoiding overlapping

and duplication of work

• Ways for better utilization of available manpower

• Light to consistencies and deficiencies of an organisation and enables

the management to correct them

• And facilitates the supervisors to better evaluate the employee

performance

• Teamwork, where everyone in the department work towards a common

goal

• Companies to better manage change in the marketplace, including

consumer needs, government regulation and new technology

5.3.2.1 Awareness of the organization chart of the company

Organisation chart is essential for ensuring organisational

efficiency and better utilization of human resources. An awareness of the

structure of the organisation is required for employee for role clarity, resource

application and its efficient utilization, executive action, work flow and work

relation analysis, career planning, effective performance appraisal and overall

development of the organisation. Hence, the study attempts to analyse the

level of awareness among the employees about the organisation chart of the

company.

Table 5.6 indicates the category wise analysis of the employees

regarding the awareness of the organisation chart of the company.

Table 5.6

Category-wise awareness of the respondents

Yes No Total

Summary Total valid samples 141 109 250

Percentage 56.4% 43.6% 100.0%

Category

Workers Numbers 90 60 150

% within Designation 60.0% 40.0% 100.0%

Supervisors Numbers 11 14 25


Executives Numbers 40 35 75


Chi-Square Tests Value df P value

Pearson Chi-Square 2.641 2 .267


Table 5.6 reveals that 56.4% of the employees only have a bare

knowledge on the organizational chart of the company whereas the remaining

43.6% have no idea at all about the organisation chart. Among the workers the

ratio is 60% and 40%; the supervisors it is 44% and 56% and the executives it

is 53.3% and 46.7%respectively. This indicates a slight difference among the

opinion expressed by the three categories of employees. So to test whether the

difference observed is significant or not in the population, the researcher

conducted the chi-square test and the result shows that the difference is only a

sample characteristic(χ2 =2.641, p=0.267).

Similar test is conducted with respect to the employees based on their

age, gender, qualification and experience by setting the following hypotheses.

H0= the category, age, gender, qualification and experience are independent of

the level of awareness of the organisation chart

Ha = the category, age, gender, qualification and experience have influence on

the level of awareness of the organisation chart

If the calculated value of chi-square is greater than the tabulated value,

it is highly significant and null hypothesis is rejected.

The results that are given in Table 5.7 show the consolidated statement

of the chi-square and tabulated values of chi-square for the category-wise, age-

wise, gender-wise, qualification-wise and experience-wise responses on

awareness of organisation chart.

Table 5.7

Consolidated chi-square values on awareness of organization chart

Variables

Pearson

Chi-

Square

value

Tabulated

value of

chi-square

df P

value Inferences

Category 2.641 2.078 2 0.267 H0

rejected

The category of employee has an impact on the response

Gender 3.014 3.275 1 0.083 H0

accepted

The gender of employee has no impact on the response

Age 14.908 14.55 3 0.002 H0

rejected

The age of employee has an impact on the response

Educational

qualification 9.644 7.935 5 0.14

H0

rejected

The educational qualification of employee has an impact on the response

Experience 27.023 16.3 3 <.001 H0

rejected

The experience of employee has an impact on the response


Table 5.7 indicates that the category of employees – workers,

supervisors and executives have a difference in their opinion on awareness of

the organisation chart of the company. Similar test is conducted with respect

to the employees based on their age, gender, qualification and experience. All

except the gender-wise opinion have significant influence on the opinion of

awareness level. Hence, it may be concluded that the opinion of employees

based on their category, age, educational qualification and experience have an

impact on the level of awareness of the

If the calculated value of chi

it is highly significant and null hypothesis may be rejected. From Figure 5.7, it

is clear that the calculated value of chi

value in all cases except the gender

awareness of organisation chart may vary among the category of employees,

age of employees and qualification or experience of employees.

Consolidated chi-square value


2.641

3.0142.078

3.275

Category Gender

Comparative chi

Pearson Chi-Square value


impact on the level of awareness of the organisation chart.



is clear that the calculated value of chi-square is greater than the tabulated

value in all cases except the gender-wise opinion. It means that the level of


age of employees and qualification or experience of employees.

Figure 5.7

square values on awareness of organization chart


3.014

14.908

9.644

27.023

14.55

7.935

16.3

Gender Age Educational

qualification

Experience

Comparative chi-square values

Square value Tabulated value of chi-square


square is greater than the tabulated value,


square is greater than the tabulated

wise opinion. It means that the level of


s on awareness of organization chart

Experience

5.3.3 Skill development programme in the company

Skills and knowledge are the driving forces of economic growth and

social development of any organisation. Organisations with higher and better

level of skills adjust more effectively to the challenges and opportunities of

world of work. Potentially, the target group for skill development comprises

all those in the labour force, including the workers, supervisors and the

executives. Planned development of skills must be underpinned by a policy

which is comprehensive in character. An organisational policy is needed to

guide the skill development strategies and coordinated action by all stake

holders to avoid a piecemeal approach. It is also important that the policies of

skill development be linked to policies in the economic, employment and

social development arena of the organisation. It may cover training

programme for workers and managerial skill development programme for

executives.

5.3.3.1 Participation in the skill development programme

An organisation provides various types of skill enhancement

opportunities to its employees for improved performance and efficiency. It is

targeted with the specific intention of attaining efficiency through employee

training and development both in-house and out-house. Such an opportunity

and openness to the employees is inevitable for individual and organisational

growth and survival. Thus, the study aims at analyzing the opportunities

availed by the employees to facilitate a leap ahead.

Table 5.8 indicates the category wise participation of the employees in

the skill development programme of the company. Table 5.8 reveals that only

54.4% of the employees participated in any skill development programme of

the company whereas the remaining 45.6% have not yet participated in any

skill development programme. Among the workers the ratio is 48% and 52%;

the supervisors it is 56% and 44% and the executives it is 66.7% and 33.3%

respectively. This indicates a slight difference among the opinion expressed by

the three categories of employees. So to test whether the difference observed

is significant or not in the population, the researcher conducted the chi-square

test and the result shows that there is a significant difference in the sample

characteristic(χ2 =7.052, p=0.029).

Table 5.8

Category wise participation in skill development programme

Yes No Total

Summary

Total valid samples 136 114 250

Percentage 54.4% 45.6% 100.0%

Category

Workers Numbers 72 78 150


Supervisors Numbers 14 11 25


Executive Numbers 50 25 75


Chi-Square Tests Value df P value

Pearson Chi-Square 7.052 2 .029


Similar test is conducted with respect to the employees based on their

age, gender, qualification and experience by setting the following hypotheses.

H0= the category, age, gender, qualification and experience are independent of

the degree of participation in the skill development programme

Ha = the category, age, gender, qualification and experience have influence on

the degree of participation in the skill development programme


it is highly significant and null hypothesis is rejected.

Table 5.9

Consolidated chi-square values on participation in the

skill development programme

Variables

Pearso

n Chi-

Squar

e value

Tabulate

d value df

P

value Inference

Category 7.052 6.685 2 0.029 H0

rejected

The category of employee has an impact on the response

Gender 3.918 4.43 1 0.048 H0

accepted

The gender of employee has no impact on the response

Age 8.529 8.58 3 0.036 H0

accepted

The age of employee has no impact on the response

Educational

qualification 8.293 7.935 5 0.141

H0

rejected

The educational qualification of employee has an impact on the response

Experience 5.529 5.18 3 0.137 H0

rejected

The experience of employee has an impact on the response


Table 5.9 indicates that the category of employees – workers,

supervisors and executives have a difference in their opinion on participation

in the skill development programme of the company. Similar test is conducted

with respect to the employees based on their age, gender, qualification and

experience. The gender-wise opinion and age-wise opinion indicates no

significant impact on the participation in the skill development programme.

However, the educational qualification and experience has an impact on

marking the opinion on participation in the skill development programme.

Hence, it may be concluded that the opinion of employees based on their

category, educational qualification and experience have an impact on the

participation in the skill development programme.


it is highly significant and null hypothesis may be rejected.

Figure 5.8

Consolidated chi-square values on participation in the skill development

programme


From Figure 5.8, it is clear that the calculated value of chi-square is

greater than the tabulated value category-wise, qualification-wise and

experience-wise opinion. It means that the opinion regarding the participation

in the skill development programme may vary among the category to category

of employees, as qualification and experience of employees. However, the

gender-wise and age-wise opinion regarding the participation in the skill

development programme has no impact at all.

7.052

3.918

8.529

8.293

5.529

6.685 4.43

8.58

7.935

5.18

Category Gender Age Educational

qualification

Experience

Comparative chi-square values

Pearson Chi-Square value Tabulated value

5.3.4 Human Resource Development

HRD is not only a field of study but also a practicing profession. HRD

practitioners and academia focus on it as a process. It as a process occurs

within organizations and covers both Training and Development (TD) and

Organization Development (OD). Training and Development covers the

development of human expertise for the purpose of improving performance

and Organization Development covers empowering the organization to take

advantage of its human resource capital. TD alone can leave an organization

unable to tap into the increase in human, knowledge or talent capital. OD

alone can result in an oppressed, under-realized workforce. HRD experts find

the interstices of win-win solutions that develop the employee and the

organization in a mutually beneficial manner. HRD does not occur without the

organization, so the practice of HRD within an organization is inhibited or

promoted upon the platform of the organization's mission, vision and values1.

Other typical HRD practices includes executive and management

development, new employee orientation, professional skill training,

technical/job training, customer service training, sales and marketing training,

and health and safety training.

HRD positions in business or non-profit organisations and other field

includes HRD Manager, Vice- President of organizational effectiveness,

Training Manager or Director, management development specialist, blended

learning designer, training needs analyst, chief learning officer, and individual

career development advisor.

Human resources development is not a defined object, but a series of

organized processes, with a specific learning objective. Specific interventions,

areas of expertise and practice that fall within this definition of HRD are

recognized as performance improvement, organizational learning, career

management and leadership development. Human resource development as a

structure allows for individual development, potentially satisfying the

organization’s goals. The development of the individual will benefit both the

individual and the organization. The human resource development framework

views employees as an asset to the enterprise whose value will be enhanced by

development. Its primary focus is on growth and employee development; it

emphasizes developing individual potential and skills.

An apprentice will step through the development process to become a

tradesman in their field as will a white-collar trainee to become a professional

in their field. Training will allow the individual to complete a task within their

field in time as it provides, maintains and enhances skills to perform the job.

Education and training will develop the individual to become a

professional in the future. A successful human resources development

programme will prepare the individual to undertake a higher level of work, an

organized learning over a given period of time, to provide the possibility of

performance change.

Human Resource Development is the framework that focuses on the

organization competencies at the first stage, training, and then developing the

employee, through education, to satisfy the long-term organization needs and

the individuals’ career goals and employee value to their present and future

employers. Human Resources Development can be defined simply as

developing the most important section of any business its human resource by

attaining or upgrading the skills and attitudes of employees at all levels in

order to maximize the effectiveness of the enterprise.

Human Resource Development from a business perspective is not

entirely focused on the individual’s growth and development. The

organization should be able to enhance the organizational value through the

efforts for individual development. Individual education and development is a

tool and a means to an end, not the end goal itself.

5.3.4.1Components of Human Resource Development

The three fundamental components of human resource development

are the individual development (personal), career development (professional),

and organizational development (whole organisation), which are rightly

designated as Human Resource Development Index (HRDI). The importance

of each component will vary from organization to organization according to

the complexity of the operation, the criticality of human resources to

organizational efficiency, and the organization's commitment to improved

human resources. But all the three have one focus—individual performance

improvement. Since individual performance improvement is the heart of an

HRD programme, HRD can be described as the area of congruence among the

three components.

� Individual Development

It refers to the development of new knowledge, skills and improved

behavior that resulted in performance enhancement and improvement related

to the present job of an individual employee through training. It may involve

formal programmes but even covers informal on-the-job training efforts.

� Career Development

It focuses on analysis necessary to identify the individual interests,

values, competencies, activities and assignments necessary to develop skills

for future jobs and development. It covers the individual activities like career

planning, career awareness and utilizing career resource centers. It also covers

organisational activities like job posting, mentoring, career resource center

development and maintenance, career counseling, career development

workshops and seminars, human resource planning, performance appraisal and

career pathing programs

� Organisational Development

It is oriented towards developing new and creative organisation

solutions to problems of the organisation by enhancing congruence among

organisation structure, culture, processes and strategies within the human

resource domain. Thus the organisation becomes a more functional unit as a

result of closer working relation among these elements. The ultimate goal of

every organisation is to develop its self renewing capacity. This refers to the

ability of the organisation to look introspectively and discover the problem

and weaknesses and to direct the resources necessary for improvement. Thus,

the organisation can regenerate itself over and over again as it confronts new

and challenging circumstances. This occurs through interaction of

organisational members with a change agent using behavioural science theory,

research and technology.

Thus, the three variables that are known as the components of human

resource development selected for the study are:

1. Individual development

2. Career development

3. Organisational development

The various factors studied and analysed under the three broad components of

Human Resource Development are:

Table 5.10

Factors under Individual Development

Factors

Encouragement from superiors to suggest new ideas about the work

ID1

Clear information about the individual target ID2

Satisfaction with schedules & planning of work ID3

Deep interest in the work I am doing ID4

Receipt of recognition & appreciation for my abilities & efficiency

ID5

Nice rapport with boss & co-workers ID6

Need based training/ development for personal development ID7

Remuneration matches the responsibility ID8

Optimism about the future of the company ID9

Reward/appreciation for creative suggestions and remarkable contributions

ID10

Readiness to do challenging job ID11

Source: Secondary data

The eleven factors considered for analysis under Individual

Development are designated as ID1, ID2, ID3, ID4, …………., ID11.

Table 5.11

Factors under Career Development

Factors

Organization chart help to plan our career in the company Cd1

Training & Skill development linked with promotion/ increment/ more authority

Cd2

Management support to improve my efficiency Cd3

Professional growth & learning opportunities Cd4

Top management support for career advancement Cd5

Implementation of performance linked variable pay (recommended in the last pay revision order)

Cd6

There should be a solid criteria for efficiency based promotion Cd7

Overall, the skill development opportunities in the company is appreciable

Cd8

Management consider our interest while determining the training and development needs

Cd9


The nine factors considered for analysis under Career Development are

designated as Cd1, Cd2, Cd3, Cd4, …………., Cd9.

Table 5.12

Factors under Organisational Development

Factors

Medical & welfare facilities Od1

Efficiency of the top management to ensure team spirit Od2

Top management encourage participative decision making Od3

Need for a legal frame work/ separate Act to ensure skill & career development

Od4

Comfortable enough inter- personal relationship to support the overall organisational growth

Od5

Efficiency of the organization may be ensured through experienced and skilled enough employees

Od6

OHSAS, ISO & other similar certifications will enhance the image of the company

Od7

Communication meeting is an effective tool for worker-management interaction

Od8

Opportunities to facilitate inter-industry exposure to improve skill and knowledge

Od9

A comfortable enough organizational environment for applying the knowledge & skill acquired through training & development

Od10


The ten factors considered for analysis under Organisational

Development are designated as Od1, Od2, Od3, Od4, …………., Od10.

Table 5.13 gives the mean, coefficient of variation, the percentage

mean score of each of the three variables.

Table 5.13

Mean, coefficient of variation, the mean percentage score values

Maximum Mean Std.

Deviation

Mean %

Score CV

Individual

development 55 43.16 3.88 78.47 8.99

Career development 45 29.17 4.33 64.82 14.85

Organizational

development 50 37.43 3.65 74.86 9.75


Based on the detailed analysis of the mean percentage score

Mean score of the variable 100

Maximum possible scoreMPS ×

=

it seems that the employees are more

interested in individual development and organizational development than

career development as the mean percentage score of these are more than 75%.

The mean percentage score of the career development is only 64.68%, which

indicates that the employees are moderately interested in career development.

Also the coefficient of variation indicates that the opinions are more or less

stable in this case.

To test whether the opinion vary with the designation of the

employees, detailed examination of the variations are made and the results are

given in Table 5.14.

Table 5.14

Category-wise mean percentage score of employees

Designation

Individual

development

Career

development

Organizational

development

Worker Mean 43.44 26.87 37.28

Mean % Score 78.98 59.72 74.56

Std. Deviation 4.03 3.89 3.81

Supervisor Mean 44.44 31.52 41.00

Mean % Score 80.80 70.04 82.00


Executive Mean 42.16 32.97 36.53

Mean % Score 76.65 73.27 73.07


Total Mean 43.16 29.17 37.43

Mean % Score 78.47 64.82 74.86



Table 5.14 shows that the mean score value for individual development

is high among supervisor category where as it is executive category in the case

of career development. The mean value for organisational development is

high for supervisory category with a score 41.00.

Table 5.15

Consolidated mean percentage score of different categories of employees

Designation Individual

development

Career

development

Organizational

development

Worker 78.98 59.72 74.56

Supervisor 80.80 70.04 82.00

Executive 76.65 73.27 73.07


From the Table 5.15, it can be seen that the mean percentage score of

individual development is highest for the supervisors followed by the workers

and least for the executives. In the case of career development the executives

have high score followed by the supervisors and workers. The highest mean

percentage score for the organizational development is for the supervisors and

the least for the workers. Hence, it can be concluded that the mean percentage

score of the three variables considered varies with designation.

In order to test whether there exist a significant difference among the

mean percentage score of the three categories of employees, the researcher

formulated the following hypothesis for testing the three variables separately.

The one-way ANOVA test is conducted to test the hypothesis

connected with individual development and the result is exhibited in the Table

5.16

H0: the mean individual development score of the workers, supervisors and the

executives are the same

Ha1: the mean individual development score of the workers, supervisors and

the executives have significant difference.

Table 5.16

One-way ANOVA for individual development

Sum of

Squares df

Mean

Square F Sig.

Individual

development

Between

Groups 127.716 2 63.858 4.356 0.014

Within Groups 3621.200 247 14.661

Total 3748.916 249


From the Table 5.16, it is easy to understand that the significance level

is less than 0.05 and hence the variable considered has significant difference

as far as the different categories of employees are concerned.


connected with career development and the result is exhibited in the Table

5.17.

H0: the mean career development score of the workers, supervisors and the

executives are the same.

Ha2: the mean career development score of the workers, supervisors and the

executives have significant difference

Table 5.17

One-way ANOVA for career development

Sum of

Squares df

Mean

Square F Sig.

Career

development

Between

Groups 2014.164 2 1007.082 93.558 0.001

Within Groups 2658.780 247 10.764

Total 4672.944 249


Table 5.17 shows that the significance level is less than 0.05 and hence

the variable considered has significant difference as far as the different

categories of employees are concerned.


connected with organisational development and the result is exhibited in the

Table 5.18.

H0: the mean organizational development score of the workers, supervisors

and the executives are the same

Ha3: the mean organizational development score of the workers, supervisors

and the executives have significant difference.

Table 5.18

One-way ANOVA for organisational development

Sum of

Squares df

Mean

Square F Sig.

Organizational

development

Between

Groups 382.297 2 191.149 16.109 0.001

Within

Groups 2930.907 247 11.866

Total 3313.204 249


Table 5.18 indicates that the significance level is less than 0.05 and

hence the variable considered has significant difference as far as the different

categories of employees are concerned.

Hence, to identify which among the categories of employees have

difference in opinion, the researcher conducted Tukey’s multiple comparison

test and the different group of employees identified corresponding to each of

the variables are given in the Table 5.19.

Table 5.19

Tukey’s Multiple Comparisons Test

Variables pair

Individual development Workers, Executive

Supervisor, Executive

Career development Workers, Executive

Workers, Supervisor

Organizational development

Workers, Executive

Supervisor, Executive

Workers, Supervisor


Tukey’s Multiple Comparisons Test analysis in Table 5.19 indicates

that there is difference in opinion between workers and executives as well

between supervisors and executives regarding the factors contributes towards

individual development. As regards the career development, the difference in

opinion is between workers and executives as well between workers and

supervisors. There is difference in opinion between all the parties concerned in

the case of organisational development in the company.

� Box-and-whisker plot graphical presentation

The box-and-whisker plot or box plot, displays a statistical summary of

a variable, the median, quartiles, range and possibly extreme values. In the

Box-and-whisker plot, the central box represents the values from the lower to

upper quartile (25 to 75 percentile). The middle line represents the median.

The horizontal line extends from the minimum to the maximum value,

excluding outside and far out values which are displayed as separate points2.

Box Plot graphs are quite common in statistics and quality

measurements. Graphs in the box plot data class organize data items by

category. A Box Plot graph data item has five main

values: Low, Q1, Median, Q3 and High. These numbers are determined from

the data set the researcher is using to create the box plot. The data set also can

have any number of outlier data values. A box plot data set has five main

values and these values form the box. They are the lower value, Q1, median,

Q3, high value and the outlier. A box plot can also accept any number of

outlier data values. All data values after the high value are considered outlier

values are arranged from low to high3. Outlier symbols differ depending on

distance from the box. Normal outliers display a small circle, while extreme

outliers display a plus sign.

The box plot related to individual development is shown in Figure 5.9.

Figure 5.9

Box plot - Individual development


Figure 5.9 displays the statistical summary of individual

development aspects covering the median, quartiles, range and possibly

extreme values. The segment in the centre represents the median and small

circles outside represents the outliers.

Figure 5.10

Box plot - Career development


Figure 5.10 displays the graphical representation of career

development aspects covering the lower to upper quartile values. The outliers

are reduced to minimum representing the symmetry of response. Anyhow the

response of the workers may have a wide range.

Figure 5.11

Box plot - Organizational development


Figure 5.11 represents the organisational development aspects covering

the responses of three category respondents-worker, supervisor and the

executives. The segment in the centre represents the median and small circles

outside represents the outliers.

5.3.4.1.1 Structural Equation modeling for the components of Human

Resource Development

The main aim of this section is to investigate the extent to which the

factors considered under each of the three variables, individual development,

career development and organizational development influence them.

Confirmatory factor analysis (CFA) is a type of structural equation

modeling (SEM), which deals specifically with measurement models that

measures the relationship between observed measures or indicators (eg. test

items, test scores etc) and latent variables or factors. The fundamental feature

of confirmatory factor analysis is its hypothesis driven nature. In confirmatory

factor analysis, the researcher specifies the number of factors and the pattern

of indicator factor loading in advance, thus the researcher must have a firm

prior sense, based on past evidence and theory of the factors that exist in the

data. Confirmatory factor analysis is used for four major purposes:

1) Psychometric evaluation of measures

2) Construct validation

3) Testing method effects and

4) Testing measurement in variance (across groups or population)

In social research works, researchers need to have measures with good

reliability and validity that are appropriate for use across diverse populations.

Development of psychometrically sound measures is an expensive and time

consuming process, and confirmatory factor analysis is one such step in the

development of process, because researchers often do not have the time or

resources to develop a new measure, that they may force to use existing

measures. In addition to savings in time and costs, using existing measures

also helps to make research findings comparable across studies when the same

measure is used in more than one study. However, when using existing

measure, it is important to examine whether the measure is appropriate for the

population included in the current study. Under these circumstances,

confirmatory factor analysis can be used to examine whether the original

structure of the measure works well in the new population.

For the analysis initially an input model was developed by using

AMOS-7 graphics. The rectangle represents observed factors, ovals drawn in

the diagram represents unobserved variable, and here it is individual

development. The curved double headed arrows represent correlations or co-

variances among the unobserved variables and the straight headed arrows

represent the factor loadings of the observed variables. The small circles with

arrows pointing from the circles to the observed variables represent errors or

unique factors, which are also known as squared multiple correlation of the

standard error. This initial model is refined to reach the final model.

� Reliability Analysis

An assessment of the statistical reliability is necessary before any

further validation analysis. Reliability refers to degree of dependability,

consistency or stability of a scale. Unreliable scale will lack consistency of

measuring the same item to the extent. There are four good methods of

measuring reliability. Test-retest technique, multiple forms, inter-rater, Split

half reliability, now a days , particularly for field survey internal consistency is

estimated by using Cronbach’s alpha. An alpha value of 0.70 or above is

considered to be criterion for demonstrating strong internal consistency, alpha

value of 0.60 or above is considered to be significant.

A questionnaire was designed considering the above factors and a pilot

study was carried out before going for the final analysis. On the basis of the

findings in the pilot study the questionnaire is further refined and this refined

questionnaire is used for the collection of final data.

The validity and accuracy of final judgment is most crucial and

depends heavily on how well the data was collected in the first place. The

quality of data will greatly affect the conditions and hence at most importance

must be given to this process and every possible precaution should be taken to

ensure accuracy while collecting the data. One of the major problems we are

facing in this direction is sample size justification. Sample size calculation is

concerned with how much data we require to make a correct decision on

particular research. If we have more data, then our decision will be more

accurate and there will be less error of the parameter estimate. This doesn't

necessarily mean that more is always best in sample size calculation.

Accordingly in the present study the researcher calculated the sample size

using power analysis on the basis of information obtained from the pilot study.

The power analysis gives that a sample of 150 or more is adequate for our

study. So we collect information from 250 samples from each of the three

categories of employees.

The collection of data is based on stratified proportional sampling

among the three categories of employees namely workers, supervisors and the

executives.

For the present study, Cronbach’s alpha is calculated for the all the

three variables and the results are given in the table. Values of Cronbach’s

alpha show that refined scale are reliable.

Table 5.20

Cronbach’s Alpha

Variable Cronbach’s

alpha No of Variables

Individual development 0.641 11

Career development 0.622 9

Organizational development 0.612 10


An alpha value of 0.70 or above is considered to be criterion for

demonstrating strong internal consistency and alpha value of 0.60 or above is

considered to be significant. Since the Cronbach’s alpha value is more than

0.60 for all the three variables, the data is reliable, dependable, consistent and

stable.

� Confirmatory Factor Analysis

Structural equation modeling (SEM) was performed to test the fit

between the research model and the obtained data. This technique is chosen

for its ability to examine a series of dependence relationships simultaneously,

especially where there are direct and indirect effects among the constructs

within the model. In this study, AMOS 7.0 was used and the SEM estimation

procedure is maximum likelihood estimation.

In using structural equation modeling, it is a common practice to use a

variety of indices to measure model fit. In addition to the ratio of the χ2

statistic to its degree of freedom, with a value less than 5 indicating acceptable

fit, researchers recommended a handful of fit indices to assess model fit. These

are the Goodness of Fit Index (GFI), Normed Fit Index (NFI), Standardized

Root Mean Residual (SRMR), and the Comparative Fit Index (CFI) as shown

in Table 5.21.

Table 5.21

Fit indices

Recommended

Level of Fit

χ2

DF - Degrees of freedom

P - P-value >0.05

Normedχ2 - Normed Chi-square <3

GFI - Goodness of fit index >0.90

AGFI - Adjusted Goodness of fit index >0.91

NFI - Normed Fit Index >0.92

TLI- Tucker Lewis Index or Non-normed fit index >0.93

CFI - Comparative Fit Index >0.94

RMS - Root Mean Square <1

RMSEA - Root Mean Square Error of

Approximation

<0.5

Source: Table value

Individual Development

Table 5.22

Model fit indices for Confirmatory Factor Analysis – Individual Development

Level of Fit Recommended

level of fit

χ2 32.227

DF 25

P 0.152 >0.05

Normedχ2 1.289 <3

GFI 0.977 >0.90

AGFI 0.939 >0.91

NFI 0.949 >0.92

TLI 0.973 >0.93

CFI 0.988 >0.94

RMS 0.024 <1

RMSEA 0.034 <0.5

Source: Statistical Values

Table 5.22 shows the level of acceptable fit and the fit indices for the

proposed research model in this study. All the values satisfy the recommended

level of acceptable fit. However, the results of the normed χ2 (χ2 / df) value in

the present study is well within the recommended χ2 / df< 3.

Table 5.23

Descriptives – Individual Development


Based on the mean percentage score of the factor ID4, I am interested

in the work I am doing has got the highest value followed by I have nice

rapport with my boss & co-workers, I am ready to do challenging job, and so

on. To find out really the ranking based on sampling information given above

Factor Mean Std.

Deviation

Mean%

Score CV

Superiors encourage us to suggest

new ideas about the work (ID1) 3.68 0.71 73.52 19.26

Clearly informed us about the

individual target (ID2) 3.58 0.98 71.52 27.29

Satisfied with Schedules & planning

of work (ID3) 3.64 0.63 72.72 17.42

I am interested in the work I am

doing (ID4) 4.25 0.65 84.96 15.40

I receive recognition & appreciation

for my abilities & efficiency (ID5) 3.68 1.08 73.52 29.29

I have nice rapport with my boss &

co-workers (ID6) 4.22 0.61 84.32 14.44

Everyone should give need based

training/ development for personal

development (ID7)

4.12 0.74 82.32 17.93

Remuneration matches my

responsibility (ID8) 3.97 0.56 79.36 14.08

Optimistic about the future of the

company (ID9) 3.70 0.89 74.00 24.01

Creative suggestions and remarkable

contribution should be rewarded

(ID10)

4.13 0.74 82.64 17.93

I am ready to do challenging job

(ID11) 4.21 0.52 84.24 12.39

holds in the population or not and identify the contribution of each of the

factors in individual development we carry out the structural equation model

or confirmative factor analysis and the result is given in Table 5.24. It is

found that the necessary requirement for the confirmatory factor analysis is

satisfied.

Table 5.24

Standardised Regression Weights – Individual development

Factor Estimate rank

Superiors encourage us to suggest new ideas about the work

(ID1) .486 4

Clearly informed us about the individual target (ID2) .191 9

Satisfied with Schedules & planning of work (ID3) .306 7

I am interested in the work I am doing (ID4) .647 3

I receive recognition & appreciation for my abilities &

efficiency (ID5) .689 2

I have nice rapport with my boss & co-workers (ID6) .865 1

Everyone should give need based training/ development for

personal development (ID7) .205 8

Remuneration matches my responsibility (ID8) .330 6

Optimistic about the future of the company (ID9) .438 5

Creative suggestions and remarkable contribution should be

rewarded (ID10) .134 11

I am ready to do challenging job (ID11) .168 10


Based on the regression coefficient the most contributing factor in

individual development is I have nice rapport with my boss & co-workers, the

next is I receive recognition & appreciation for my abilities & efficiency

followed by I am interested in the work I am doing and so on. The regression

model for the Individual development is

Individual development = 0.486 ID1 + 0.191 ID2 + 0.306 ID3 + 0.647 ID4 +

0.689 ID5 + 0.865 ID6 + 0.205 ID7 + 0.330 ID8 + 0.438 ID9 + 0.134 ID10 +

0.168 ID11

Figure 5.12

Path diagram – Individual development

Individual

development

.24

ID1 e1

.49

.04

ID2 e2

.19

.42

ID4 e4

.09

ID3 e3

.31

.48

ID5 e5.69

.75

ID6 e6.86

.04

ID7 e7

.21

.65

.11

ID8 e8

.33

.19

ID9 e9.02

ID10 e10.03

ID11 e11

.44

.13

.17

.43

-.17

.15

-.28

-.27

.30

-.24

-.20

.15

-.24

-.22

.23

-.19

.18

-.16

-.22

-.18

.10

-.27

The rectangle represents observed factors, big ovals drawn in the

diagram represents unobserved variable, the Individual Development. The

curved double headed arrows represent correlations or co-variances among the

unobserved variables and the straight headed arrows represent the factor

loadings of the observed variables. The small ovals with arrows pointing from

the ovals to the observed variables represent errors or unique factors, which

are also known as, squared multiple correlation of the standard error.

The structural equation model indicates that the superiors’

encouragement to suggest new ideas has a regression weight of 0.486

contributions to individual development that is ranked as 4; clear information

of individual target has a regression weight of only 0.191 contributions to

individual development that is ranked as 9; extent of satisfaction with

schedules and planning of work has a regression weight of 0.306 contributions

to individual development that is ranked as 7 and so on. The sum total of all

these factors so determined by assigning regression weights is the total

individual development in the organisation.

Career Development

Table 5.25

Descriptive – Career Development

Factor Mean Std.

Deviation

Mean%

Score CV

Organization chart help to plan our career in the company (Cd1)

4.00 0.47 80.00 11.64

Training & Skill development should be linked with promotion/ increment/ more authority (Cd2)

3.94 0.68 78.88 17.25

Management support to improve my efficiency (Cd3)

2.54 0.87 50.72 34.46

Professional growth & learning opportunities (Cd4)

2.96 1.05 59.12 35.65

Top management support for career advancement (Cd5)

3.33 1.18 66.64 35.35

The performance linked variable pay recommended in the last pay revision order should be implemented (Cd6)

3.13 1.31 62.56 41.81

There should be a solid criteria for efficiency based promotion (Cd7)

3.62 1.04 72.32 28.75

Overall, the skill development opportunities in the company is appreciable (Cd8)

3.23 1.04 64.64 32.13

Management consider our interest while determining the training and development needs (Cd9)

2.42 0.76 48.48 31.49

Source: Primary source

Based on the mean percentage score of the factor Cd1 has got the

highest value followed by Cd2, Cd7, Cd5 and so on. To find out really the

ranking based on sampling information given above holds in the population or

not and identify the contribution of each of the factors in career development

we carry out the structural equation model or confirmative factor analysis and

the result is given in Table 5.27. It is found that the necessary requirement for

the confirmatory factor analysis is satisfied.

Table 5.26

Model fit indices for Confirmatory Factor Analysis – Career Development

Level of Fit

χ2 29.189

DF 18

P 0.046 >0.05

Normedχ2 1.622 <3

GFI 0.975 >0.90

AGFI 0.937 >0.91

NFI 0.914 >0.92

TLI 0.965 >0.93

CFI 0.926 >0.94

RMR 0.041 <1

RMSEA 0.050 <0.5

Source: Statistical values


proposed research model in this study for career development. All the values

satisfy the recommended level of acceptable fit. However, the results of the

normed χ2 (χ2 / df) value in the present study is well within the recommended

χ2 / df< 3.

Table 5.27

Standardised Regression Weights – Career development

Factor Estimate rank

Organization chart help to plan our career in the company (Cd1)

.316 5

Training & Skill development should be linked with promotion/ increment/ more authority (Cd2)

.198 7

Management support to improve my efficiency (Cd3) .218 6

Professional growth & learning opportunities (Cd4) .389 4

Top management support for career advancement (Cd5)

.165 8

The performance linked variable pay recommended in the last pay revision order should be implemented (Cd6)

1.035 1

There should be a solid criteria for efficiency based promotion (Cd7)

.427 3

Overall, the skill development opportunities in the company is appreciable (Cd8)

.041 9

Management consider our interest while determining the training and development needs (Cd9)

.448 2

Based on the regression coefficient the most contributing factor in career

development is Cd6, Cd9, Cd7, Cd4, Cd1 and so on. The regression model

for the career development is

Career development = 0.316 Cd1 + 0.198 Cd2 + 0.218 Cd3 + 0.389 Cd4 +

0.165 Cd5 + 1.035 Cd6 + 0.427 Cd7 + 0.041 Cd8 + 0.448 Cd9

Figure 5.13

Path diagram – Career development

Career

development

.10

cd1 e1

.32

.04

cd2 e2

.20

.15

cd4 e4

.05

cd3 e3

.22

.03

cd5 e5.16

1.07

cd6 e61.04

.18

cd7 e7

.43

.39

.00

cd8 e8

.04

.20

cd9 e9

.45

.27

.32

.26

.27-.24

.21

.23

.19

The rectangle represents observed factors, big ovals drawn in the

diagram represents unobserved variable, the Career Development. The curved

double headed arrows represent correlations or co-variances among the

unobserved variables and the straight headed arrows represent the factor

loadings of the observed variables. The small ovals with arrows pointing from

the ovals to the observed variables represent errors or unique factors, which

are also known as, squared multiple correlation of the standard error.

The structural equation model indicates that the opinion of employees

that the organisation chart are useful enough to plan the career has a

regression weight of 0.316 contributions to career development that is ranked

as 5; training and development linked with promotion, increment has a

regression weight of only 0.198 contributions to career development that is

ranked as 7; extent management’s support to improve efficiency has a

regression weight of 0.218 contributions to career development that is ranked

as 6 and so on. The sum total of all these factors so determined by assigning

regression weights is the total career development in the organisation.

Organizational Development

Table 5.28

Organizational Development - Descriptive

Factor Mean Std.

Deviation Mean% Score

CV

Medical & welfare facilities (Od1) 4.33 0.60 86.56 13.98

Efficiency of the top management to ensure team spirit (Od2)

3.51 0.84 70.16 24.00

Top management encourage participative decision making (Od3)

3.44 0.80 68.72 23.29

Need for a legal frame work/ separate Act to ensure skill & career development (Od4)

2.83 1.10 56.56 38.92

Comfortable enough inter- personal relationship to support the overall organisational growth (Od5)

3.71 0.66 74.24 17.68

Efficiency of the organization may be ensured through experienced and skilled enough employees (Od6)

4.08 0.60 81.52 14.71

OHSAS, ISO & other similar certifications will enhance the image of the company (Od7)

4.07 0.70 81.44 17.24

Communication meeting is an effective tool for worker-management interaction (Od8)

4.03 0.68 80.56 16.86

Opportunities to facilitate inter-industry exposure to improve skill and knowledge (Od9)

3.70 0.84 74.08 22.57

A comfortable enough organizational environment for applying the knowledge & skill acquired through training & development (Od10)

3.74 0.78 74.72 20.95


Based on the mean percentage score of the factor, Od1 has got the

highest value followed by Od6, Od7, Od8 and so on. To find out really the

ranking based on sampling information given above holds in the population or

not and identify the contribution of each of the factors in organisational

development we carry out the structural equation model or confirmative factor

analysis and the result is given in Table 5.30. It is found that the necessary

requirement for the confirmatory factor analysis is satisfied.

Table 5.29

Model fit indices for Confirmatory Factor Analysis – Organisational

Development

Level of Fit

χ2 27.953

DF 18

P 0.063 >0.05

Normedχ2 1.553 <3

GFI 0.978 >0.90

AGFI 0.934 >0.91

NFI 0.971 >0.92

TLI 0.973 >0.93

CFI 0.989 >0.94

RMR 0.022 <1

RMSEA 0.047 <0.5



proposed research model in this study for organisational development. All the

values satisfy the recommended level of acceptable fit. However, the results of

the normed χ2 (χ2 / df) value in the present study is well within the

recommended χ2 / df< 3.

Table 5.30

Standardised Regression Weights – Organisational Development


Based on the regression coefficient the most contributing factor in

organisational development is Od10, Od5, Od2, Od7, Od3 and so on. The

regression model for the career development is

Factor Estimate Rank

Medical & welfare facilities (Od1) .381 6

Efficiency of the top management to ensure team spirit (Od2)

.754 3

Top management encourage participative decision making (Od3)

.489 5

Need for a legal frame work/ separate Act to ensure skill & career development (Od4)

-.211 9

Comfortable enough inter- personal relationship to support the overall organisational growth (Od5)

.781 2

Efficiency of the organization may be ensured through experienced and skilled enough employees (Od6)

.264 8

OHSAS, ISO & other similar certifications will enhance the image of the company (Od7)

.594 4

Communication meeting as an effective tool for worker-management interaction (Od8)

.332 7

Opportunities to facilitate inter-industry exposure to improve skill and knowledge (Od9)

-.257 10

A comfortable enough organizational environment for applying the knowledge & skill acquired through training & development (Od10)

.809 1

Career development = 0.381 Od1 + 0.754 Od2 + 0.489 Od3 - 0.211 Od4 +

0.781 Od5 + 0.264 Od6 + 0.594 Od7 + 0.332 Od8 - 0.257 Od9 + 0.809 Od10

Figure 5.14

Path Diagram - Organisational Development


Organizational

development

.15

od1 e1

.38

.57

od2 e2

.75

.04

od4 e4

.24

od3 e3

.49

.61

od5 e5.78

.07

od6 e6.26

.35

od7 e7

.59

-.21

.11

od8 e8

.33

.07

od9 e9.65

od10 e10

-.26

.81

-.41

.40

.31

-.32

.53

-.36

.33

.14

.24

.30

.19

-.12

-.32

.20

-.13

.20

-.11

The rectangles drawn in Figure 5.14 represent the observed factors Od1 to

Od10 and the circle represents the unobserved variable - organisational

development. The curved double headed arrows represent correlations or co-

variances among the unobserved variables and the straight headed arrows

represent the factor loadings of the observed variables. The small ovals with

arrows pointing from it to the observed variables represent errors or unique

factors, which are also known as, squared multiple correlation of the standard

error. This initial model is refined to reach the final model.

The structural equation model indicates that the medical and

welfare facilities has a regression weight of 0.381 contributions to

organisational development that is ranked as 6; efficiency of top management

to ensure team spirit has a regression weight of only 0.754 contributions to

organisational development that is ranked as 3; participative decision making

has a regression weight of 0.489 contributions to organisational development

that is ranked as 5 and so on. The sum total of all these factors so determined

by assigning regression weights is the total organisational development in the

organisation.

References

1. Jerry Gillet, Steven Eggland, Principles of Human Resource

Development, Perseus Books Group, America, 2002

2. Altman D G, Practical Statistics, Chapman & Hall, London , 1991

3. Tukey, Exploratory Data Analysis, Addison – Wesley Publishing

Company, United States, 1987

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