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IMPACT OF WORKING ENVIRONMENT AND TRAINING & DEVELOPMENT ON ORGANIZATION PERFORMANCE THROUGH MEDIATING ROLE OF EMPLOYEE ENGAGEMENT AND JOB SATISFACTION

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Abstract

In today's challenging and competitive environment organizations and institutes are making continuous effort to improve the performances of their employees. To investigate this notion this study has used a deductive approach with a cross-sectional research design & self-completion survey instrument. This approach has been used to collect data from 300 respondents. Structure Equation Modeling (SEM) technique has been used for analysis and result generation. Employee engagement and job satisfaction are found to act as mediator between working environment, training & development and organization performance. Working environment, training & development, employee engagement and job satisfaction appear to be effective ways in developing a strong relationship with organization performance. The present study could facilitate and provide a guidelines to consider implementation of practical applications regarding enhancing the employee engagement. This study suggests that employee engagement and satisfaction play the mediating role between working environment, training & development and organization performance.
European Journal of Training and Development Studies
Vol.4, No.2, pp.33-48, April 2017
Published by European Centre for Research Training and Development UK (www.eajournals.org)
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ISSN 2057-5238(Print), ISSN 2057-5246(Online),
IMPACT OF WORKING ENVIRONMENT AND TRAINING & DEVELOPMENT
ON ORGANIZATION PERFORMANCE THROUGH MEDIATING ROLE OF
EMPLOYEE ENGAGEMENT AND JOB SATISFACTION
Dr. Naveed Iqbal Chaudhry
Assistant Professor & in- charge Department of Business Administration,
University of the Punjab, Gujranwala Campus, Pakistan
Dr. Mushtaque Ali Jariko
Assistant Professor, Institute of Business Administration
University of Sindh, Jamshoro
Tania Mushtaque,
PhD scholar, Roskilde University, Denmark
Dr. Hakim Ali Mahesar
Assistant Professor, Institute of Commerce
University of Sindh, Jamshoro
Zakia Ghani
Department of Business Administration,
University of the Punjab, Gujranwala Campus, Pakistan
ABSTRACT: In today’s challenging and competitive environment organizations and
institutes are making continuous effort to improve the performances of their employees.
To investigate this notion this study has used a deductive approach with a cross-
sectional research design & self-completion survey instrument. This approach has been
used to collect data from 300 respondents. Structure Equation Modeling (SEM)
technique has been used for analysis and result generation. Employee engagement and
job satisfaction are found to act as mediator between working environment, training &
development and organization performance. Working environment, training &
development, employee engagement and job satisfaction appear to be effective ways in
developing a strong relationship with organization performance. The present study
could facilitate and provide a guidelines to consider implementation of practical
applications regarding enhancing the employee engagement. This study suggests that
employee engagement and satisfaction play the mediating role between working
environment, training & development and organization performance.
KEYWORDS: Working environment, Training & development, Employee
engagement, Job satisfaction, Organization performance
European Journal of Training and Development Studies
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ISSN 2057-5238(Print), ISSN 2057-5246(Online),
INTRODUCTION
Background of Study
Employee engagement has become very important topic for discussion in recent years
(Baumruk 2004). Baumruk explains that employee engagement is important topic of
human resource management and is linked with organization performance.
Organization Performance is a level to measure quality of an employee’s output in
his/her work, duties and responsibilities. Studies show that an important way to enhance
the employee engagement as a driver of increased performance. Employee engagement
depends on employee satisfaction and organization performance. Employees
performance is achieved when they are valued, trusted, involved, paid well, promoted,
mentored, challenged, empowered, and appreciated () . According to Svensson & Wood
(2006) organization performance is linked with management and attitude of
supervisors.. Pitt & Tucker (2008) suggested that organization performance is self-
motivated sign of organization to achieve mission, goals, values and objectives by
performing its activities in the form of input and output.
Baumruk (2004) has asserted that employee engagement is the important and powerful
tool to measure the organization strength. According to Bhatla (2011) employee
engagement focuses on the employee efforts to improve progress, efficiency and
efficacy of whole organization. Serrano et al. (2011) presented four important ways to
raise employee engagement that not only to do their work with happiness but also
enhance organization performance.
According to Jennifer (2009) job satisfaction is the combination of feeling and emotions
of employees in their work. According to Nelson (2006) job satisfaction is priceless,
incomparable and invaluable. Hopeless employees are negatively upsetting the desire
level of work. A little amount of employees which are satisfied with their work not only
effect the performance of organization but also effect the corporations.
According to Boles, Pelletier, & Lynch (2004) working environment is a place where
employees show thierzeal, interest, and desire to work. Tripathi et al. (2014) defined
working environment as a situation in which employee work (physical, culture, market
conditions and job profiles). Every phases are connected with each other.
Patrick (2000) defined training in terms that training and development is a growth of
knowledge, attitudes and skills of employees to perform their given task effectively and
efficiently. According to researcher S. H. Chan & Kuok (2011) training are require for
so many reasons. These authors add that there are so reasons which include
advancement in technology, accuracy of result, better supervision, intense competition,
and customer demands..
Problem Statement
Origin of problem is considered as research problem. Employee engagement is
hindering due to the bad working environment and poor training programs. Job
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satisfaction is not only necessary for growth but also to certify the organization
existence in market place. That’s why it is so important to make employee satisfaction
at workplace. In the organization low level employees, managers, workers and staff are
the main assets that are required to take part in the organization. Adding variable of
job satisfaction can help in enhancing the level of organization performance (Lee,
2012). Some related research work has been carried out in public/ service sector of
Pakistan particularly on employee engagement and its impact on organization
performance. However, a very little research has been conducted in banking sector of
Pakistan particularly on employees’ engagements areas. Keeping in view the above
background there appears the existing gap on the research under investigation.. The
authors of this paper believe that this research will add more scientific knowledge and
can contribute in the field of employees engagements programs.. The authors suggest
that employees engagement and and satisfaction play the mediating role between
working environment, training & development and organization performance. The
authors of this paper believe that the proposed model is a novel idea and can bring
positive consequences for the banking industry in Pakistan.
Aim and Objective of study
The aim of this study is to present and identify the relationship of working environment
and training & career development on employee engagement and satisfaction. This
study also identifies the impact of employee engagement and satisfaction on
organization performance.
Research Objectives
The purpose of this study is:
o To check the influence of work environment and training & career development
on employee engagement, job satisfaction and organization performance of
banking employees.
o To examine the impact of employee engagement and job satisfaction on
organization performance of banking employees.
o To examine the mediating role of employee engagement and job satisfaction
between working environment, training & development and organization
performance.
The following questions were raised in spirit of achieving the specific objectives
set:
Research Questions
RQ1: What does the impact of work environment and training & career development
have on employee engagement, satisfaction and organization performance?
RQ2: What does the impact of employee engagement and job satisfaction on
organization performance?
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RQ4: Up to what extent employee engagement and job satisfaction mediates the
relationship between working environment, training & development and organization
performance?
Significance of the study
This study is contributing in literature by relating employee engagement and
satisfaction with organization performance in banking sector of Pakistan which is the
uniqueness of this study. Furthermore, working environment and training and
development are also as independent variable which is giving another unique edge to
this research work. In addition, this study checks the relationship of working
environment and training and development with employee engagement and
satisfaction. This study checks the mediating relationship of employee engagement and
satisfaction between working environment and training & development and
organization performance. The authors of this study believe thatemployee engagement
and satisfaction play the mediating role between working environment, training &
development and organization performance. The authors also believe that this research
will give another unique edge to field of research. Now we will move on next section
in our research paper which is about literature review. It is most important section of
research paper.
LITERATURE REVIEW
In this section, we have highlighted the past researchers’ opinions and thinking about
the variables that are included. The literature review part comprises the major variables
of this study.
Organization Performance
The organization plays very important role developing and increasing employees’
performances. Different developing nations depend on the success of organization and
institutions. Performance is the main attention of any institution and organization.
Organization Performance was the important dependent variable in favour of many
researcher interest in area of management Richards et al. (2008). According to
Kalimullah et al. (2010) employees line up its goals and objectives with the
organization and institution and attach its energies with instructions. Al-Mamary,
Shamsuddin, & Aziati (2014) argued that OP is collected by the results of work process
and activities due to the efforts of employees in the organization. OP considered of
organizational effectiveness, efficacy, efficiency and productivity.
Employee Engagement
Different researchers, practitioners, and scholars have different point of views about the
employee engagement. Truss et al. (2006) suggested the definition of EE in term of that
it is only interest or desire to work of employees. Dernovsek (2008) has explained that
EE refers as the interest involved towards work, it includes the positive attitude
employees which includes the emotionally affection and assurance. Lee Whittington &
Galpin (2010) asserted that EE is openly linked with safety, customer satisfaction, and
employee retention etc. Hewitt (2012) explained EE as to measure employee sensations
and their obligation towards the success of their institution and organization.
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Job Satisfaction
In today’s competitive world the job satisfaction plays a central role and organizations
are aware of that. Job satisfaction is the level of pleasure in which employee feel happy
to do their work. For example, Ilies et al. (2009) defined that JS is the one of more
dynamic work attitude, approach, methods and styles. According to Hashmi Irshad et
al. (2014) JS is the variable which is tested by many scholars and industrial/
organizational psychologists. JS is a feeling which employees have through job related
experiences.
Working Environment
Different researchers have different perception of working environment. Working
environment is a place where a particular work is to be performed. It includes other
factors like quality, quantity, process, procedure and benefits. Chan & Huak (2004)
suggested that working environment discuss the social, ecological, physical,
environmental, mental and emotional appearances of employees in the institution and
organization in which they work. McCoy & Evans (2005) pointed that working
environment refer as a pleasant area of work that do not create stress among employees
to do their assigned duty of job. According to Sageer et al. (2012) employees are fully
satisfied and encouraged with the good working condition and environment, due to
good conditions employees feel happy, safety and relaxation.
Training and development
Training and development is the process for improve the performance of employees in
term of skills, knowledge, attitude and behavior (Lard et al 2003). Training and
development not only improves individual and organization superiority but also the
improves working skills of the employees. Training is concerned with the seminar of
two ideas the first idea is organization efficiency and the second idea is related to people
and technology. According to Aswathappa (2005) training & development refers as the
process and method involved in improving the aptitude, skills, knowledge, ability,
attitude of employees to perform their specific work related job. Training comforts
employees to change their old and previous talent, knowledge and experience to latest
and new talent.. Armstrong & Taylor (2014) defined TD as a systematic growth of
knowledge, skills and abilities to perform their job related duties in the organization.
RELATIONAL LITERATURE
Working Environment & Employee Engagement
A number of researchers have discussed on the relationship between working
environment and employee engagement. Different researchers have different opinion
regarding EE and working environment. Saks (2006) explained that working
environment is a good predictor of EE. It is also considered as an important factor of
EE. Working environment has a strong effect on EE. Rich, Lepine, & Crawford
(2010) have argued that working environment has a strong link with the employee
engagement.
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Training and Development & Employee Engagement
Different researchers have done a lot of work on the relationship between TD & EE.
Holton et al. (2009) highlighted that there are two types of owners and managers in the
organization. One who creates the problem when follow employee engagement through
training & development and others who is concerned with their employees. The other
category of managers is believed best in motivating the employees. Shuck & Herd
(2012) asserted that TD has a relationship with employee engagement and plays
important role in the development of organizations
Working Environment & job Satisfaction
Different scholars, researchers and practitioners have worked out on working
environment & JS impact, and their relationships. Work has been done on the relation
of between these two variables and their influence with each other. Researchers have
different thinking about these variables. Buhai, Cottini et al. (2008) highlighted that
the organization increases its outcome due to the improving in the element and factors
of working environment which has the positive response of JS. Heartfield (2012) argue
that working environment establishes a link with JS. JS not only link with the benefits,
but also link with the positive communication, and positive dealings that increases due
to good working environment in the organization and increases the JS.
Training and Development & Job Satisfaction
Different aspects have been studied in the relationship between TD and JS. According
to Schmidt (2007) explored the relationship between TD and JS. Choo & Bowley
(2007) suggested that TD affect the JS. According to Bakare (2012) when employees
are trained at their high level, the employee level of satisfaction increases and stay in
the organization. According to Sharma & Sharma (2014) training and development
programs enhance the capability of job satisfaction but also help to decrease turnover
plan and hiring charges.
Employee Engagement & Organization Performance
Halbesleben & Wheeler (2008) expressed that employee engagement and
organizational performance play positive role for increasing organization performance.
Employee engagement further enhances employee performance in the organization.
According to Macey, Schneider, Barbera, & Young (2011) EE is the key determinant
to increase organization performance. Employee engagement is very important
component to organization performance.
Job Satisfaction & Organization Performance
A lot of research is carried out by a number ofresearchers on the relationship of JS and
OP. JS mean employee job satisfaction while OP means organization performance.
Researchers have different opinions regarding the impact of JS on OP. Schmidt (2007)
explained that there is strong relationship among JS and OP. JS also have relationship
with profit, turnover intention and customer satisfaction. Zohir (2007) noted that JS is
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correlated and interconnected with OP. According to Latif et al. (2013) pointed that JS
show very important role on organization performance.
Literature Gap
The researchers did not highlight the important areas in which the performance of
organization is based. They did not explain how to work under pressure if the suitable
environment is not provided to employees. The training which is provided to employees
is not enough to perform well in the organization because the trainer which is
conducting training program just provides the information only that which is regarding
the job related duties. In employee engagement the researchers highlighted that they
did not provide incentives, rewards and promotion criteria to enhance the level of
employee engagement. The research gap of understanding the consequences,
significance and values of job satisfaction is not properly addressed. The major gap of
job satisfaction was not highlighted that how to measure the impact of job satisfaction.
The authors of this paper have attempted to bridge this gap. The purpose of literature
review is to derive hypotheses and framework of the study.
Theoretical Framework & Hypothesis Development
Relevant Theoretical Models
There are some theoretical models which are based on the above given literature. It is
very important to analyze the proposed conceptual framework. First of all the
theoretical model of antecedents of employee engagement in manufacturer is discussed.
In this study the authors discuss the key factor to evaluate the employee development
and employee engagement. A reflection has been undertaken from the work of of
researcher Raziq & Maulabakhsh (2015) who has presented a model on the relationship
between working environment & job satisfaction. Another author’s Chandra & Priyono
(2015) model on the relationship between job satisfaction and organization
performance has also been undertaken.
Proposed conceptual Framework
This model is developed by the combination of all above relevant theoretical models.
In this model the authors check the impact of employee engagement and job satisfaction
on organization performance. In the proposed framework it is checked to find out the
mediating relationship of employee engagement and job satisfaction between working
environment, training & development and organization performance.
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1.1 Theoretical Framework
1.2 Proposed Hypothesis
H1: There is significant positive relationship between work environment, training
&development, employee engagement, job satisfaction and organization
performance.
H2: Employee engagement and job satisfaction significantly mediates the
relationship between working environment, training & development and
organization performance.
METHODOLOGY
Research design
Research philosophies consist of three types that are used in the research process.
Positivism, Critical, and Interpretive. In our research the positivism philosophy is used.
It is only quantitative research which is consisting of numerical data. In deductive
approach hypothesis are proposed and further explores the opinions of past researchers
recording that variables. In this study a survey research is used because it is in
accordance with deductive approach.
The current study of research is realistic in nature. It consists of detailed analysis. To
answer the research questions the cross sectional research strategy has been selected.
Because we meet the respondent only once. The purpose of the study is explanatory or
hypothesis testing because it explains the nature of association among variables. In this
research the data is collected from the employees in the bank. This study is to be
correlation and causal. The data collected through the questionnaires in the form of
numerical is analyzed accordingly. The results obtained through the data collection.
The unit of analysis under consideration for this study is individuals only. The degree
of interference by the researcher for this study is minimal.
Population and Sample Design
The target population for present study was banking sector of Punjab Province,
Pakistan. The major reason behind selecting the banking sector has been the enhancing
contribution of this sector in the economic growth of developing country including
Pakistan. Sample demonstrating the whole target population has been targeted to take
effective data. Sampling technique is non-probability sampling technique and further
Organization
performance (OP)
Working
Environment
Training &
Development
Employee
Engagement (EE)
Job Satisfaction
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uses convenient sampling. The sample size of this study is 300 employees selected to
conduct the research. The sample size of this study is 300 because for each parameter
there has been a sample size of at least 10 respondents Kline (2011).
Data Analysis Techniques
IBM-SPSS 21 to perform the tests of descriptive statistics, normality, correlation
analysis and IBM-AMOS-21 to apply CFA and Path Analysis in SEM.
Ethical Consideration
The research data has been kept fully confidential. Names of persons and organisations
have not been disclosed. Honour and respect of the participants have been given a
priority. Respondents/participant of the research has not been harmed in any way.
FINDINGS AND DISCUSSIONS
Test Discussion
To explain the findings and results multiple tests have been useful to the data including
explanatory statistics, reliability or Cronbach’s Alpha, Pearson Correlation and SEM
path analysis test. The numerous tables that were shaped in treating the information and
the results obtained from the calculations assumed are accomplish in this section.
Results
Firstly we discuss the demographic characteristics of respondents which was assessed
through gender, age, qualification, and employment level in the organization.
There were 82.3% respondents of the study. Including in the sample size there were
17.7% male more than of the female respondents of the study of research. Out of 300
respondents, the responses belong to different age groups of male and female
respondents. O33.0% respondents hold in 21 to 30 years of age, 42.0% were ranging
the age group of 31 to 40 years, 21.3% belongs to the age group of 41 to 50 years, and
only 3.7% belongs to the age group of 51 to 60 or above. The qualification of
respondents belongs to 10.3 % as the intermediate level, 44.7% belongs to graduate
level while 38.3% belongs to post graduate level and 6.7% belongs to higher education.
The results of employment level as the respondents belong to 31.7% as the entry level
employees, 53.7% respondents belong to middle level of employment and the 14.7%
respondents belong to top management level of employment.
Reliability Analysis of Variables
Based on the Cronbach alpha test results summarized in table 5.1, working environment
which had 4 items had a reliability coefficient of 0.887, training and development with
4 items had a coefficient of 0.899, employee engagement with 12 items had a coefficient
of 0.963, employee job satisfaction with 5 items had a coefficient of 0.887 and
organization performance with 5 items had a coefficient of 0.937. The reliability
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coefficients for all the study variables were above 0.7, which is acceptable range. Thus,
representing the validity of the statistical test results has been attained.
Factor Loading of Variables
The factor loading of WE was 0.741, 0.857, 0.783 and 0.820. TD has the factor loading
of 0.784, 0.886, 0.818 and 0.876. The factor loading of EE was 0.781, 0.830, 0.782,
0.910, 0.870, 0.851, 0.785, 0.816, 0.781, 0.835, 0.888 and 0.776. The factor loading of
JS was 0.678, 0.708, 0.881, 0.795 and 0.805. The OP has the factor loading of 0.844,
0.918, 0.863, 0.808 and 0.891.
Model Fit Indices
The results of our Measurement Model was Chi-square = 1562.209, DF = 395, Normed
Chi-square = 3.955, good fitness indices (GFI) = 0.742, Adjusted Good Fitness Indices
(AGFI) = 0.697, Tucker-Lewis Coefficient (TLI) = 0.846, Comparative Fit Indices
(CFI) = 0.861, Root Mean Square Error of Approximation (RMSEA) =0.099,
Standardized Root Mean Residuals (SRMR) = 0.102, P = 0.000, PCLOSE = 0.000. The
normally acceptance ranges of all these results. It means our measurement model results
are acceptable and we can depend on it. All results in the model are acceptable ranges.
Hence, we can rely on hypothesis results. We checked all causal relationship of one by
one variable with other, which we constructed in Structural Model.
AVE
JS
WE
TD
OP
JS
0.622
0.789
WE
0.663
0.478
0.814
TD
0.676
0.175
0.328
0.822
EE
0.681
0.410
0.262
0.341
OP
0.724
0.313
0.375
0.148
0.851
Table 1: Psychometric Properties (N=300)
Table 1 explains out the composite reliabilities and average variance extracted which
are greater than 0.8 and 0.5 respectively. These results were verifying our convergent
validity. All items in the variables show and explain their adjustments and changes
which show that these items were not loading in other variables. After that the next
stage was discriminant validity. The square root of average variance extracted bold in
diagonal elements had shown in Table 2. All the correlations values should be less than
diagonal values. Our scale discriminant validity was attesting. It attested that our scale
items are loading on their own variables and no conflict arises in our study of other
variables. All the above given test proved our convergent validity and discriminant
validity.
When testing the Convergent Validity and Discriminant Validity, we determined our
scale and data collected fulfilled all preliminary requirements that is important before
testing the Structural Equation Model (SEM). We created our Structural Model in
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Measurement Model by adding proposed causal relationship to check proposed
hypothesis.
Relationships
Unstandardized β
Standardized β
S.E
C.R
P
WE EE
0.169
0.165
0.058
2.935
**
TD EE
0.274
0.289
0.053
5.147
***
WE JS
0.462
0.448
0.055
8.397
***
TD JS
0.054
0.057
1.058
1.058
*
EE OP
0.165
0.152
0.063
2.594
**
JS OP
0.131
0.121
0.069
1.893
*
WE OP
0.317
0.289
0.067
4.744
***
TD OP
0.136
0.132
0.059
2.310
**
Age OP
0.051
0.036
0.076
0.668
***
Education OP
0.030
0.020
0.083
0.364
**
Table 2: Regression weigh (N=300)
Work Environment has significant effect on Employee Engagement with
Unstandardized β value (0.169), Standardized β value (0.165) and P value is (0.003)
which is significant and supporting our hypothesis H1. The Training and Development
has significant effect on Employee Engagement with Unstandardized β value (0.274),
Standardized β value (0.289) and P value is (***) which shows P<0.001. This supports
our hypothesis H2. The working environment has significant effect on Employee
satisfaction with unstandardized β value (0.462), Standardized β value (0.488) and P
value (***) which shows P<0.001. This was supporting our hypothesis H3. The training
and development has significant effect on Employee satisfaction with Unstandardized
β value (0.054), Standardized β value (0.057) and P value (0.290) which shows
P<0.001. This was supporting our hypothesis H4. The employee engagement has
significant effect on organization performance with Unstandardized β value (0.165),
Standardized β value (0.152) and P value (0.009) which shows P<0.001. It was
supporting our hypothesis H5. The employee job satisfaction has significant effect on
organization performance with Unstandardized β value (0.131), Standardized β value
(0.121) and P value (0.058) which shows P<0.001. It was supporting our hypothesis
H6.
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Figure: Structural Equation Model
Mediation
In SEM after anticipated hypothesis testing and investigating of all the direct
relationships of study, mediation involving hypothesis of model were run and tested
through use of Baron & Kenny (1986) four step approach. He suggested that there can
be four types of path in which three types of path can be linked with direct form and
the one type of path can be linked with indirect form. Three direct paths are: Impact of
independent to mediator, Impact of mediator to dependent, Impact of independent to
dependent and one indirect path is impact of independent on dependent through
mediating effect.
Relationships
Un-standardized β
Standardized β
P
WEE EE
0.169
0.165
**
TD EE
0.289
0.274
***
EE OP
0.165
0.152
**
WEE JS
0.452
0.448
***
TD JS
0.054
0.057
*
JB OP
WE OP
0.131
0.317
0.121
0.289
*
***
TD OP
0.136
0.132
**
Table 3: Direct effects. Note: ns=not significant, *=p<0.05, **=p<0.01, ***=p<0.001.
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Relationships
Un-standardized β
Standardized β
P
WEE EE OP
0.088
0.079
***
TD EE OP
0.052
0.051
**
WEE JS OP
0.088
0.079
***
TD JS OP
0.052
0.051
**
Table 4: Indirect effects. Note: ns=not significant, *=p<0.05, **=p<0.01, ***=p<0.001.
In Table 3 and 4 highlighted the mediation relationship results. Working environment
shows a significant effect on organization performance through the mediator employee
engagement (indirect effect) with (Unstandardized β = 0.088, Standardized β = 0.079,
P < 0.001). Training and development shows a significant effect on organization
performance through the mediator employee engagement (indirect effect) with
(Unstandardized β = 0.052, Standardized β = 0.051, P < 0.01). Working environment
shows a significant effect on organization performance through the mediator employee
job satisfaction (indirect effect) with (Unstandardized β = 0.088, Standardized β =
0.079, P < 0.001). Training and development shows a significant effect on organization
performance through the mediator employee job satisfaction (indirect effect) with
(Unstandardized β = 0.052, Standardized β = 0.051, P < 0.01). All paths of working
environment, training and development, employee engagement, employee job
satisfaction and organization performance are found to be significant which is in
support of hypothesis of this study.
Hypotheses Testing
Hypothesis
Results
H1: WE EE
Accepted
H2: TD EE
Accepted
H3: WE JS
Accepted
H4: TD JS
Accepted
H5: EE OP
Accepted
H6: JS OP
Accepted
H7: WE OP
Accepted
H8: TD OP
Accepted
H9: WEE EE OP
Accepted
H10: TD EE OP
Accepted
H11: WEE JS OP
Accepted
H12: TD JS OP
Accepted
This study has discussed four mediations and all were belongs to full category. First
mediation results shows that working environment shows to increase the employee
engagement level in their work which helps employees to improve the performance of
European Journal of Training and Development Studies
Vol.4, No.2, pp.33-48, April 2017
Published by European Centre for Research Training and Development UK (www.eajournals.org)
- 46 -
ISSN 2057-5238(Print), ISSN 2057-5246(Online),
organization Lockwood, Halbesleben & Wheeler (2008). Second mediation results
shows that training and development the workers in the organization want to increase
the knowledge, skills and abilities to match it with the place in which they perform their
duty. In this study employees able to promote their com potencies through training and
development and enhance the level of EE that ultimately effect on increase the
organization performance Vemić, Shuck & Herd (2012). Third mediation results shows
that WE have emotional impact to employee job satisfaction which have effect on the
organization performanceRoelofsen,Zohir (2010). fourth and last mediation shows
results that when employees are trained at their high level, then the employee level of
satisfaction increases and level of organization increases Bakare (2012).
CONCLUSION
Results of study
The study focuses on the importance of organization performance. Working
environment, training & development, employee engagement, job satisfactions have
strong relationship with organization performance. The present study also supports the
ideas that when good working environment is provided to employees in the
organization, the employees not only are happy but stay there and work for the progress
of the organization. The employee engagement and satisfaction also shows the
significant for the relationship of working environment, training & development and
organization performance. Without employee engagement and satisfaction the level of
performance in the organization is adversely affected. Employee engagement and
satisfaction play the mediating role between working environment, training &
development and organization performance.
CONTRIBUTIONS OF THE STUDY
PRACTICAL IMPLICATIONS
Employee engagement and satisfaction contribute in enhancing the organization
performance. It has been beneficial for employees, managers, and organization. The
present study could facilitate the other organizations to consider implementation of
practical applications regarding enhancing the employee engagement and satisfaction
among all the levels of organization keeping the efficiency, productivity and
effectiveness of organization as the main booster of the process.
Theoretical Implication
The context of study is new. In this research, employee satisfaction has been added in
employee engagement and organization performance. This hypothesis has been
established and demonstrated which shows the positive relationship with organization
performance (OP). The banking sector has been among the most successful sector
particularly among the developing nations including Pakistan. The existing study adds
to the theoretical aspect of research regarding the engagement and satisfaction of
employees influencing the performance of organization.
European Journal of Training and Development Studies
Vol.4, No.2, pp.33-48, April 2017
Published by European Centre for Research Training and Development UK (www.eajournals.org)
- 47 -
ISSN 2057-5238(Print), ISSN 2057-5246(Online),
Limitations of the Study
The present study has involved the banking organizations which has been one of the
biggest limitations of present study. Data is collected from the some cities of Pakistan.
These findings equally applicable to all population in Pakistan cannot be generalized .
Clear strategies based on the findings is not yet explored and presented. The study was
limited to Staff and executives of banks only. Moreover, the target population has been
limited to the employees of the banking organizations of Pakistan.
Future Avenues for Research
The future study could be occurred through different sectors rather than banking sector
in Pakistan. Different characteristics of the studies could be included for future
researches. The future research could study the cross- sectional and quantitative
research paradigm to be incorporated in their studies. The future research could be
longitudinal. We can add organizational attribute as mediator. Other commercial and
Islamic banks can be added in sample. In addition, the manufacturing, teaching sector,
and other service sectors could also be undertaken.
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Purpose – The purpose of this paper is to identify the key determinants of employee engagement and their predictability of the concept. It also studies the impact of employee engagement on employee performance. Design/methodology/approach – Causal study was done to study the impact of relationships. A survey questionnaire was developed and validated using a pilot data ( a =0.975). Simple random sampling was used to select the employees from middle and lower managerial levels from small-scale organisations. A total of 700 questionnaires were distributed and 383 valid responses collected. Regression and structural equation modelling were used to predict and estimate the relationships. Findings – It was found that all the identified factors were predictors of employee engagement ( r 2, 0.672), however, the variables that had major impact were working environment and team and co-worker relationship. Employee engagement had significant impact on employee performance ( r 2, 0.597). Practical implications – Special focus and effort is required specifically on the factors working-environment and team and co-worker relationship as they have shown significantly higher impact on employee engagement and hence employee performance. Organisations shall focus on presenting a great environment for employees to work and promote programmes that would enhance peer relationships. Social implications – The determinants of employee engagement connote a healthy working atmosphere that reflects on the social impact created by the organisation. Employees would enjoy considerable attention in terms of the determinants being addressed. Originality/value – The research emphasises the growing importance and need for crystallisation of the concept of employee engagement. The research is unique in respect to the comprehensive model that is developed and validated.
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