Abstract
For the purpose of this study, the data was extracted from the various garment industries that were located in the Chittagong, Bangladesh. Here, we analysed the data by employing simple correlation and path analysis. In the analysis, it is found that each of the factors [individual related factors (IRF), job related factors (JRF); and organizational related factors (ORF)] has a strong positive correlation with employees' performance (EP). Path analysis disclosed that the direct effects of IRF and ORF are highly significantly influences on employees' performance (EP) and in most cases indirect effects of different factors on EP are also appreciable.
Keywords: Employees' Performance (EP); Ready-made Garments (RMGs) and Path Analysis
JEL Classifications: M54
Introduction
Employees are the most valuable asset in any organization. A successful and highly productive business can be achieved by engaging them in improving their performance. All employees are not equal in their working and they have different modes of working like some have highest capability regardless of the incentive but other may have occasional jump-start. If they are handled effectively, the result canbe greater productivity and increased employee morale. Employees in a firm are required to generate a total commitment to desired standards of performance to achieve a competitive advantage and improved performance for sustaining that competitive advantage at least for a prolonged period of time, if not forever. In view of Judge & Ferris (1993), perhaps there is no more important human resources system in organizations other than performance evaluation and ratings of employees' performance represent critical decisions that are key influences on a variety of subsequent human resources actions and outcomes.
Performance means both behaviour and result. Behaviour emanates from the performer and transforms performance from abstraction to action. Not just the instrument for result, behaviours is also outcomes in their rights the product of mental and physical effort applied to task and can be judged apart from the result (Armstrong, 2000). Bates & Holton (1995) have pointed out that performance is a multidimensional construct, the measurement of which varies depending on a variety of factors (Armstrong, 2000). A more comprehensive view of performance is achieved if it is defined as embracing both behaviour and outcomes (Armstrong, 2000). Employees' performance (EP) is an important factor that contributes to improve the outcomes, behaviour and traits of the employees. It helps to improve the productivity of the organization.
Nickols (2003) and Fort& Voltero (2004) identify similar factor that are closely related and affect provider performance in the workplace. They include a clear goals and job expectations, suitable repertoire, immediate feedback, skills to perform, knowledge of the organizational structure, functional feedback system, sound metal models, sufficient motivation through self-satisfaction and incentives, supportive or conducive
There are a number of factors which may be affecting the employees' performance. Each employee may have different effect from different things at workplace. Their attitude and behaviour can play a vital role in their performance. Employees don't perform in a vacuum. There are a variety of factors, INF (which is the combination of different attributes i.e., value, beliefs, critical thinking, and anticipation of success and work attitude), JRF (i.e., needs, self-concept, personal impact skills competence, feedback, incentives and rewards) and ORF (i.e., organizational culture, norms and standards used at work, communication, supervisor and colleague support) that affects their performance. Identifying these factors can help improve recruitment, retention and organizational results. Hence, in attempt to fill the research gap the present study is initiated to identify the factor which affecting employees' performance in RMGs sector.
Objectives
The following objectives are taken for the study:
Research design and Methodology
These describe research design, unit of analysis, research approach, sampling procedure, data sources, instrumentation, reliability and mode of analysis.
Research design
Exploratory studies are a valuable means of finding out ‘what is happening; to seek new insights; to ask questions and to assess phenomena in a new light' (Robson, 2002). It can be linked to the activities of the traveller or explore (Adams & Schvaneveldt, 1991). Its great advantage is that it is flexible and adaptable to change (Naipul, 1989).
Research Approach
As this study is a business and management research, it has a characteristic of positivist and interpretivist and also involves in deductive approach (Hussey & Hussey, 1997; Robson, 1993) as well as inductive approach (Easterby-Smith, Thrope & Lowe (2002). Combining these two research approaches in same piece of research is perfectly possible and advantageous for a research.
Unit of Analysis
Unit of analysis of the study were Garments sector attached to Bangladesh Ready-made Garments Association (BRMGA) in Chittagong, Bangladesh.
Sampling Design
A non-probabilistic sampling method, namely convenience sampling, was used in drawing samples for this study. Respondents were from various garment industries that were located in the Chittagong, Bangladesh.
Data Sources
The study was complied with the help of primary data and secondary data. Primary data were collected direct personal interview with help of the questionnaire. Total 60 employees were responded through the questionnaire. Moreover, the desk study covered various published and unpublished materials on the subject.
Questionnaires Development
The questionnaire was administrated to employees of garment industries in Chittagong. A five item scale from never (1) to always (5) was adopted to identify the variables of employees' performance.
Reliability
Before applying statistical tools, testing of the reliability of the scale is very much important as its shows the extent to which a scale produces consistent result if measurements were made repeatedly. This is done by determining the association in between scores obtained from different administrations of the scale. If the association is high, the scale yields consistent result, thus is reliable. Cronbach's alpha is most widely used method. It may be mentioned that its value varies from 0 to 1 but satisfactory value is required to be more than 0.6 for the scale to be reliable (Malhotra, 2000; Cronbach, 1951). In the present study, we, therefore, used Cronbach's alpha scale as a measure of reliability. Its value was estimated to be a=0.857, If we compare our reliability value with the standard value alpha of 0.6 advocated by Cronbach (1951), a more accurate recommendation Nunnally & Bernstein (1994) or with the standard value of 0.6 as recommendated by Bagozzi and Yi's (1988) we find that the scales used by us are highly reliable for data analysis.
Analytical Method
In the present study, we analysed our data by employing simple correlation and path analysis. For the study, entire analysis is done by personal computer. A well known statistical package i.e., 'Statistical Package for Social Sciences' (SPSS) 13.0 Version was used in order to analyze the data.
Data analysis and Findings
Data analysis and findings has been discussed under the following sub-heads.
Correlation Analysis
Correlation analysis was performed to find out the relationship along with test of significance between the following factors:
Table-1 shows that the factors IRF, JRF and ORF are independently positively correlated with EP and also highly significant at 1% levels. Here it is obvious that the maximum correlation (r =0.757) is existed between ORF and EP, followed by the association (r =0.614) between IRF and EP. That is it should be needed to give the highest emphasis on organization related factors for superb performance of employees. Individual related factors are also crucial for wonderful performance of ready-made Garments employees. Although there has no so influential link (r =0.564) between JRF and EP like as IRF and ORF, it also essential to serve the purpose of employees' performance. Except EP, remaining three factors are pair-wise positively correlated with one to another and also statistically significant at P-value 0.000. Among the three factors, the relationship (r =0.613) between IRF and JRF is the highest, followed by the link (r =0.579) between ORF and JRF. The value of r=0.503 implies that there has a considerable association between IRF and JRF.
Path Analysis
Path analysis was engaged in this study to identify the direct and indirect effects of independent factors on dependent factor (EP). In model (Figure-1) six hypothesized path coefficients are considered and among the coefficients one is statistically insignificant, one is little bit significant at 10% levels, and remaining coefficients are strongly significant at 1% levels.
There are three arrows in path model that came from some unknown factors; the values along with the arrows indicate error effects on respective factor, which didn't consider in the study. The overall error effect 0.378 discloses that only 38% effect of factors is ignored due to unavoidable circumstances. Moreover (1-0.378) =0.622 =R2 reveals that the considered factors are superior selection for the analysis.
In the table -2, it is seen that the total effects are the adding of direct and indirect effects. Out of about 62% total effect (0.615) of IRF on EP, almost 21% is direct effect (0.206), approximately 7% and 24% are indirect effects through JRF (0.072) and ORF (0.237) respectively, remaining 10% be indirect effect via the factors JRF as well as ORF (0.100). From the above discussion IRF has the highest relation with ORF in case of EP, followed by IRF due to direct effect on EP. The overall influence of JRF over EP is 0.342, in which direct effect (0.143) is not as dominant as indirect effect (0.199) through ORF. Here it is undoubtedly true that ORF is a good quality secondary factor to manipulate employees' performance. The direct effect (0.549) of ORF over EP is the uppermost which itself is the total effect. Hence it is clear that ORF is the key factor in case of the inspection of employees' performance in Ready-made Garments (RMGs) sector.
Conclusion
From the correlation matrix, the highest positive value of correlation between ORF and EP clarify that the authorities of garments sector is required to give main focus on ORF for getting fabulous employees' performance. The maximum average point (3.5833) of ORF also discloses the identical conclusion. A strong positive relation between IRF and EP spell out garment industries cannot ignore employees' individual factors to achieve satisfactory performance. The minimum standard deviation (0.54528) represents that attributes within individual related factors has a close connection. So if any one of the attributes in IRF is neglected, employees' performance will be severely hampered. Considering the coefficients of correlation of FP with other factors, JRF is the final factor according to the priority basis but employees cannot deny it due to statistically significant association with EP. A powerful link between ORF and IRF says that an employee do not apart himself from organization and vice-versa. Almost alike statement can draw in case of relationship between the pairs ORF and JRF, JRF and IRF.
Like correlation matrix, path analysis also declares that the maximum individual (direct) effect is on EP from ORF. Therefore it is obvious that without ORF employees' performance will be lower than the below average. IRF has the second maximum direct effect over EP and it also indirectly influences to EP through other factors ORF and JRF separately and simultaneously. To gain more afford of employees, owners ought to be flexible to individual related factor of workers as it has not only direct effect but also some substantial indirect effects on EP. Even though the effect of JRF on EP is not statistically significant, it considerably operates EP through the factor ORF. Hence employees' performance will be better when job related factors are considered along with organization related factors. To achieve the ceiling economic gain in Ready-made Garments (RMGs) sector, quality product must be ensured. Only employees can provide quality product through their excellent performance and for that a good combination of IRF, JRF and ORF is required, which is released by the path table.
Policy Implications
Although the present study was confined to identify the factors of EP, it may be appropriate to state briefly the policy implications for the study. In this context, the following policy actions may be considered worthwhile.
Direction for Future Study
Several suggestions that fruitful for future research emerged from this present study. In order to validate the findings of this study, case study is another interesting approach that can be done by future research. Additionally, the research model of this study can be retested in business organizations, so that the research model can be generalized to other economic sector.
References
