Testingthe Effectsof Employee Empowerment
Testingthe Effectsof Employee Empowerment
Testingthe Effectsof Employee Empowerment
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Received: March 23, 2016 Accepted: March 24, 2016 Published: April 26, 2016
Doi:10.5296/ ijld.v6i1.9200 URL: http://dx.doi.org/10.5296/ ijld.v6i1.9200
Abstract
Improving employee productivity is one of the most important objectives for any
organization. This is because highly productive employees can influence overall
organizational performance. This study aims to test the direct effects of employee
empowerment, teamwork, and employee training on employee productivity in higher
education sector. Based on the review of past literature, it is clear that only few studies were
conducted on employee productivity, particularly, in education sector. Therefore, the data of
this study were collected using an online survey from a sample of 242 employees serving at
public universities in northern Malaysia. To analyse the collected data, SPSS and structural
equation modelling were utilized. The results revealed that employee empowerment has
significant positive effect on employee productivity. It was also found that teamwork has
significant positive effect on employee productivity. Finally, the study found that employee
training has significant positive effect on employee productivity. These findings provide
useful implications for policy makers to set out their strategies with regard to human resource
factors to in order to enhance both employee productivity and organizational performance.
Keywords: Employee empowerment, employee productivity, employee training, teamwork.
1. Introduction
Improving employee productivity has been a central issue in past research both in
manufacturing as well as in service sectors. This is because increased employee productivity
can affect the overall performance of an organization and its competitive advantage. Kien
(2012) declared that productivity is an important factor for building organizational
competitiveness, sustaining its strategic and financial performance, attaining the desired goal,
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and meeting the value propositions of its stakeholders. Vrat, Sardana and Sahay (2009)
demonstrated that the efforts to maximize productivity come from the effective management.
The term productivity was described in the literature as a measure of the amount of output
that is obtained from an employee over a period of time (Mokhtar, Nooreha, Nik Mustapha,
and Mazilan, 2003; Käpylä, Jääskeläinen, and Lönnqvist, 2010). Moreover, productivity
reflects the use of different resources or inputs in an organization to attain planned or
favourable outcomes. In general, productivity refers to the output that an employee achieves
over a specific period of time.
An efficient and effective utilization of human resources in an organization is very important
to improve its overall effectiveness and efficiency. Past literature reveals that employee
productivity can be influenced by various organization behavioural factors such as employee
training (Bhat, 2013), employee empowerment, and teamwork. Training is an ongoing
process through which employees truly obtain the necessary knowledge and be able to know
how to perform well in an organization. An organization that is capable to design an
environment which emphasizes on training that can be valued by its employees will have
better chances to obtain greater commitment (Hanif and Abdullah, 2013). Similarly,
employee empowerment is a significant strategy that many organizations use to improve the
strengths and involvement of their employees assuming that empowered employee are likely
to be more efficient in their job duties (Saifullah, Alam, Zafar, and Humayon, 2015).
Benrazavi and Silong (2013) also considered teamwork as an important factor that
contributes to employee performance. Teamwork is a mutual activity that aims to achieve a
common goal through involving organizational members in certain groups to share their
knowledge and skills with each other.
Enhancing employee productivity is one of the main concerns for the management in any
organization. However, despite the importance of this topic, it is evident in the literature that
the theoretical and empirical research on employee productivity is scarce. Moreover, it is
noted there are limited studies which examined the effects of employee training, employee
empowerment, and teamwork on employee productivity in Asian context. Therefore, this
study aims to provide significant contributions to the body of knowledge and empirical
research on this topic by examining the effects of the stated factors on employee productivity
in Malaysian higher education sector. The education industry was selected to conduct this
study due to the lack of empirical research on employee productivity in this context.
Moreover, higher educational institutions in the country are competitive and therefore, it is
important to examine the effects of behavioural factors that determine employee productivity
and commitment which resultantly could lead to greater effectiveness. The next sections start
by literature review, methodology, analysis of results, and then discussion and conclusion
follow.
2. Literature Review
2.1 Employee Productivity
The issue of employee productivity has recently emerged in the literature as one of the
foremost critical challenges for organizations to manage their workforce. As much of an
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organizations that are performance oriented should focus on employee empowerment and job
satisfaction in their decision making in order to achieve such desired goal. Employee
empowerment is one of the valued concepts that are considered to be important in improving
the behavioural elements of employees to achieve higher degree of support, innovation,
teamwork spirit, entrepreneurship, self-confidence, and independent thinking (Elnaga and
Imran, 2014). Employee empowerment was previously defined as endowing the power to an
employee to make decisions when needed (Hunjra, UlHaq, Akbar, and Yousaf, 2011).
Moreover, Daft (2001) described empowerment as offering employee the freedom, control,
and opportunities to involve in decision-making and organizational matters.
In the current era which is marked by high globalization, there is need for organizations to
focus on empowerment to enable the qualified employees to make necessary decisions and
respond to any changes that may arise in the business environment at any time. Employee
empowerment is built by designing a working environment where employees are allowed to
make their own decisions based on certain work-related conditions (Elnag and Imran, 2014).
According to Wadhwa and Verghese (2015), empowerment is a process of transferring power,
authority with responsibility, and accountability to employees through their managers. As
result, empowered employee will usually develop competency to actively perform their tasks
by applying their knowledge and skills (Jacquiline, 2014). The advantages of employee
empowerment include increased responsibility, high employee morale, and better quality of
work life. Meyerson and Dewettinck (2012) regarded employee empowerment as a
motivational tool that aims to increase organizational performance if managed properly by
increasing the participation and self-determinations of employees.
Employee empowerment has widely been recognized as a key contributor to organizational
success, and many authors observed a direct relationship between the levels of employee
empowerment and employee performance. Dobbs (1993) stated that empowerment affects the
performance of employees and also creates a favourable work environment. According to
Ripley and Ripley (1992), empowerment leads to positive organizational outcomes, such as
enhanced employees’ responsibilities and motivation in the routine work, improved level of
job satisfaction, better quality of services, higher employee’s loyalty, low turnover intention,
and maximized productivity. By adopting the empowerment strategy, it is believed that
employees would feel the self-respect which is worthy for them, and it can ultimately
increases their productivity and quality of work. Meyerson and Dewettinck (2012) also found
that empowerment had a significant positive effect on employee productivity. Based on the
above discussion, the following hypothesis is proposed:
H1: Employee empowerment has positive effect on employee productivity.
2.4 Teamwork
Nowadays, many organizational divisions have adopted the culture of teamwork as key to
achieve greater success. Teamwork was previously viewed as the actions of employees
brought together to attain a certain objective or goal by placing the interests of each member
to the interest of the overall group (Chukwudi, 2014). Similarly, Ooko (2013) thought about
teamwork as a group of people working together in order to attain a common goal. The
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author indicated that teams in organizations usually consist of employees who acquire
necessary skills that are important to achieve the desired objectives. In this incident, all team
members have the opportunities to teach each other how to perform a particular task skilfully
and professionally. Hence, the greater the degree of collaboration among team members, the
higher is the opportunity for shared learning and the greater is the level of productivity.
Besides that, working in a team allows employees to feel empowered and this supports them
to develop autonomy, which is a source of job satisfaction and low stress levels (Oso, 2002).
In the current business markets where competition is high, organizations’ managers recognize
the significance of teamwork, because working in teams can enlarge the outputs of employee
through collective collaboration. Additionally, teamwork is becoming the key strategy to staff
development in several organizations. According to Alie, Beam and Carey (1998), teamwork
can be the smartest growth strategy, and usually employees who work in teams are likely to
become the key assets for the organization. This is because teamwork is the tool for
improving the utilization of employee-power that can ultimately increase his or her
performance. Manzoor, Ullah, Hussain and Ahmad (2011) revealed that the support of top
level management can help an employee to confidently work with others in groups, and this
as a result can increases his/ her productivity. Certain scholars added that teamwork enables
people to help each together, improves their individual skills, and obtain positive feedback
without any conflict between them (Jones, Richard, Paul, Sloane, and Peter, 2007).
Consequently, team members who get the opportunities to learn and apply new skills will
have more favourable attitudes towards teamwork (Jiang, 2010).
Previous literature reported that teamwork is the key result of successful managements
aiming to improve overall organizational outcomes in terms of productivity. Mbinya (2013)
demonstrated that the majority of organizations focus on teamwork in an attempt to achieve
their targets. Past studies found that teamwork has significant positive effect on employee
productivity and organizational performance. That is, organizations which emphasize more
on teams can enjoy favourable outcomes such as enlarged employee performance, higher
productivity and better skills in problem solving (Cohen and Bailey, 1999). Moreover, Gallie,
Zhou, Felstead and Green (2009) confirmed that teamwork enriches performance through the
increased scope of using employees’ knowledge, skills, and abilities and sharing them with
other members. The authors added that teamwork enhances employee productivity and it
leads to favourable levels of commitment toward the organisation. Based on the above
discussion, the following hypothesis is presented:
H2: Teamwork has positive effect on employee productivity.
2.3 Employee Training
To manage human resources in any organization, training is one of the essential activities.
The key principles of training focus on the needs of employees to do meaningful work
through learning programs supported by scientific theories taking into account the elements
of efficiency, effectiveness, and individual differences (Diab and Ajlouni, 2015).
Organizations can develop and increase the quality of their employees by providing inclusive
training and development programs (Singh and Mohanty, 2012). Training is an organizational
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activity that is systematically planned and results in an improved level of skill, knowledge
and competency that are necessary to ensure effective performance (Betcherman, 1992). In
other words, training is a process of learning that includes the acquisition of knowledge,
upgrading of skills, understanding the rules, or altering the attitude or behaviour to improve
employees’ performance (Sabir, Akhtar, Bukhari, Nasir and Ahmed, 2014). Elnaga and Imran
(2013) referred training to the programs that aim to provide employees with necessary
information and new skills that can increase their professional development opportunities.
With the rapid increase in competition, developing the knowledge and skills of an
organization's employees have recently become very important to drive long-term
performance, building competitive advantage, and ensuring continuous development (Singh
and Mohanty, 2012). Sabir et al. (2014) indicated that training can be categorized into
on-the-job or off-the-job training. The authors highlighted that on-the-job training takes place
at the workplace using the available instruments, documents, equipment, or materials that the
trainees need during the training program. In fact, on-the-job training has a universal repute
as it is highly effective especially in occupational work. On the other hand, off-the-job
training takes place outside the work place where employees do not count as directly
productive workers. The advantage of off-the-job training appears in allowing employees to
get away from their works for a while and focus more carefully on the training itself. In
comparison with the on-job-training, this type of training has been confirmed to be more
effective in enhancing employees’ learning.
Training is regarded as an important variable for increasing organizational productivity. A
number of scholars (Colombo and Stanca, 2008; Sepúlveda, 2010) thought about training as a
primary and powerful tool to successfully accomplish organizational goals and objectives and
enhancing employee productivity. According to April (2010), training programs are designed
to provide greater benefits for the employee and the organization itself through increasing
employees’ performance using the shared knowledge, skills, and competencies. Sabir et al.
(2014) found that training could enable employees to maximize their levels of productivity.
That is, an employee will become more efficient and productive if he receives effective
training (Elnaga and Imran, 2013). Asava (2014) also found that training has positive effect
on employee productivity. Based on the above discussion, the following hypothesis is
presented:
H3: Employee training has positive effect on employee productivity.
3. Methodology
The main purpose of this study is to test the effects of employee empowerment, teamwork,
and employee training on employee productivity in Malaysian higher education sector. The
population includes administrative and academic staff at public universities in northern
Malaysia. This study adopts the quantitative approach where a survey method was utilized to
collect the relevant data from respondents. Based on the recommendations of Krejcie and
Morgan (1970) for determining sample size, a total of 242 questionnaires were considered
acceptable for the sample size based on the population of the present study. By adopting a
survey method, it would be possible to examine the link between the variables. The collected
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data was analysed using SPSS and structural equation modelling on AMOS.
In designing the questionnaire, the measurement items of constructs were taken from
previous studies. For instance, five items were adapted from Chen and Tjosvold (2008); Lee
and Brand (2010) to build the scale of employee productivity. To measure employee
empowerment, seven items were adapted from Men (2010), because they had an acceptable
reliability. Furthermore, five items were adapted from the study of Shanahan, Best, Finch,
and Sutton (2007) to measure teamwork. Last but not least, a seven items scale was used to
measure employee training. The items were taken from Schmidt (2004). The selected scales
were reported at acceptable values of Cronbach’s alpha reliability. All of the items were
measured on a five-point Likert scale that ranges from 1 “strongly disagree” to 5 “strongly
agree”. The final questionnaire which comprises all items and questions related to
respondents’ profile was sent to three academicians from the same field to give their valuable
suggestions to improve it and make sure that the respondents can understand all of the
questions.
4. Analysis of Results
Out of 870 questionnaires being administered to the respondents, only 242 were returned.
The results of demographic profile revealed that 65 (26.9%) of the respondents are male,
whereas 177 (73.1%) are female. On age profile, 7% of those respondents were between 18
and 26 years old, while 121 (50%) belong to the age category of 26 to 35 years. Those whose
ages ranged between 36 and 45 years accounted for 40.5% of total response, but 16 (6.6%)
were in the age group of 46 years or above. In terms of academic qualification, the findings
showed that 36 (14.9%) had diploma degree, 79 (32.6%) are holders of undergraduate degree,
125 (51.7%) hold postgraduate degree, and 2 (0.8%) had other certificates. Most of those
respondents had more than five years of work experience in their institutions.
To examine the reliability of constructs, Cronbach’s alpha was used. The results showed that
the values of Cronbach’s alpha for all constructs were satisfactory ranging from 0.771 to 925;
employee productivity (0.755), employee empowerment (0.771), teamwork (0.925), and
employee training (0.864). From these results, it is evident that the Cronbach’s alpha
reliability of all constructs is higher than the minimum required value of 0.70 as
recommended by Pallant (2007). Furthermore, composite reliability was used to confirm the
reliability assumptions on constructs. This procedure was done using Microsoft Excel. The
findings also showed that the reliability values for all constructs are reasonable. Hence, the
reliability of constructs is achieved.
To confirm construct validity, confirmatory factor analysis (CFA) was conducted. The main
rationale of CFA is to fulfil the assumptions that each group of items which are supposed to
measure a certain variable are really measuring it. Another objective of CFA is to provide
additional support for convergent validity assumptions and solve any Multicollinearity issues.
As all of the measurement items were adapted from previous studies, CFA rather than
exploratory factor analysis (EFA) is used. Overall, CFA was conducted using structural
equation modelling on AMOS 18 by drawing the measurement model which includes all
items. In general, the results showed that the factor loading values of all items met the
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recommended criterion based on the suggestions of Hair el al. (2010). For more details, see
Appendix A.
After ensuring that the data is free of Multicollinerity and the factor loadings of all items are
acceptable, the structural model was then drawn with some model fit criterion to ensure that it
fits the data well. As it can be seen in the below Figure, the structural model adequately fit the
data, where the value of Chi-square is equal to 459.093. To support the Chi-square, other fit
indices (df = 183, GFI = 0.844, AGFI = 0.803, TLI = 0.879, CFI = 0.894, and RMSEA =
0.079) were used. Overall, the results point out that the model fit the data well as all the fit
indices achieved the recommended cut-off values based on the suggestions of Hair et al.
(2010).
Std.
Hypothesized Effect S.E. C.R. P Support
Estimate
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productivity.
H2: Teamwork has positive effect on 0.154 0.057 3.577 *** Yes
employee productivity.
H3: Employee training has positive 0.066 0.063 2.841 *** Yes
effect on employee productivity.
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4(3), 185-202.
Vrat, P., Sardana, G. D., & Sahay, B. S. (2009). Productivity measurement for business
excellence. Alpha Science International.
Factor
Code Construct/ Item
Loading
EMP1 I feel competent to perform the tasks required for my position; 0.47
TW2 The members in my team feel very close to each other. 0.86
TW6 The members of my team work hard to get things done. 0.72
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TRAIN4 Overall, the training I receive on the job meets my needs. 0.81
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