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1.0 INTRODUCTION
1.1 OVERVIEW OF COMPETENCY GAP
This research paper aimed to identify the factors contributing to competencies gap that exist among employees in Cement Industries of Malaysia Bhd (CIMA Bhd) can affect the performance of employees generally and how this problem will lead to the declining of performance of the company.
Competencies gap consists of different broad of problem that will lead to the difference between expected level of performance by company and the current level o f employees‟ competencies. According to Sikora (2011) can be defined as the difference between the desirable (in manager‟s opinion) competences and the actual ones, and between the structures and level of competences owned by the managerial and the desirable or required competences.
According to Jones and George (2003) as quoted by Plessis, Beaver and Nel (2010), there are several benefits of closing the competencies gap. Firstly, it is because of competitive advantage on a national level for organizations, if not global. By closing the gap also, organization can increase the credibility of Human Resource functions. In this matter, competitive advantage can be defined as the ability of one business or organization to outperform other businesses and it produces desired goods or services more efficiently and effectively compared to its competitors (Jones George, 2003).
The researcher hopes to know more in detail about the factor contributing to competencies gap. In the end of this research, the researcher will provide suggestion to improve the problem related to the competencies gap in CIMA Bhd. Competency, according to Ferman(1996) as cited by Spencer and Spencer (1993), is the combination of underlying attributes, skills, traits, knowledge and motives of a person which have been causally related to superior performance in a job. According to Ferman (1996) also, as cited by Lucia and Lepsinger (1995), competency can be defined as a cluster of related knowledge and attitudes that affects a major part of one ‟s job (a role or responsibility), that correlates with performance on the job that can be measured against well-accepted standards and that can be improved via training and devcelopment.
As we all know, in every business organization in this world, human capital contributes the most beneficial source to the development and success. Utilizing the human capital in the right way can give the organization chance to develop using better human resource management. Human resource management can be defined as integrated policies, systems, and management practices to recruit, maintain, and develop employees to strengthen the capacity of an organization in meeting the desired goals (MSH, 2009 as quoted by Alemu, Yosef, Beyyen and Lemma, 2011). The human resource management consists of various components that will help organization to identify and hire the most potential talent to work at the organization.
In this research, the researcher is focusing more on competency gap that exists in the performance of the employees in CIMA Bhd. Competency, according to HR-XML (2007), as quoted by Kamran (2009) is defined as the specific, identifiable, definable, measurable knowledge, skill, ability, and other deployment related characteristics (e.g. attitude, behavior, physical ability), which a human resource may possess and which is necessary for, or material In this research, the researcher is focusing more on competency gap that exists in the performance of the employees in CIMA Bhd. Competency, according to HR-XML (2007), as quoted by Kamran (2009) is defined as the specific, identifiable, definable, measurable knowledge, skill, ability, and other deployment related characteristics (e.g. attitude, behavior, physical ability), which a human resource may possess and which is necessary for, or material
The results from this research will provide some information about the level of competency gap and the actual problems that leads to the lack of performance in order to fulfill the required competency level by the employer. Some findings from this research paper might
be useful in handling the difference between competency levels of employees in order to bridge the competency gap.
1.1.1 BACKGROUND OF STUDY CEMENT INDUSTRIES OF MALAYSIA BERHAD
Cement Industries of Malaysia Berhad (CIMA Bhd) is a cement company established since 1975. Since that CIMA Bhd has become as one of the leading company in manufacturing and distributing cement in Malaysia. CIMA Bhd holds 18 of the c ountry‟s cement market share.
In CIMA Bhd, there are several divisions that consist of various manufacturing division which are in Quarrying and Ready-mixed division, Cimaco Quarry Sdn Bhd holds the required limestones for Manufacturing division, while Unipati Concrete Sdn Bhd and I-Mix Concrete Sdn Bhd manufacture the ready-mixed concrete for sale in Peninsular Malaysia.
In the meantime, for Trading Division of the group, there is Pemasaran Simen Negara responsible to coordinate customer-oriented services such as marketing, selling and distribution of the Group‟s cements with notable brands such as Blue Lion Composite Cement, NS Composite Cement and Blue Lion.
1.2 PROBLEM STATEMENT
In the researcher mind, there is one big issue arise that spark the idea of conducting the research on competency gap in the organization. The major issue in Cement Industries of Malaysia Bhd (CIMA Bhd) is how competency gap can affect the performance of employees in CIMA Bhd and how it can influence the performance of the organization.
Performance of employees plays a big role in affecting the performance of the organization. In order to build up a good rapport with other organizations also, highly manner of performance by employees is important. By fulfilling core competencies of jobs, employees can fulfill and achieve the organization goals.
In this research, the researcher had finished some studies on how these factors such job description, training program, and discipline can affect the level of competency gap at CIMA Bhd.
1.3 RESEARCH QUESTION
Several questions are being identified as the main questions in this research.
a) What are factors that contribute to the competencies gap among employees in CIMA Bhd?
b) Is there any relationship between employees‟ understanding on job description and
competencies gap?
c) How employees‟ perceived lack of training towards job task can be related to the level of
competencies gap?
d) Is there is any relationship between low level of discipline and competencies gap.
1.4 RESEARCH OBJECTIVE
In this research, there is one objective that drives the researcher to plan and conduct the research. This objective is being identified after observation on the issue and problem that arise in the organization. The objective is:
a) To identify the factors contributing to the competencies gap among employees in CIMA Bhd.
1.5 THEORETICAL FRAMEWORK
There are several factors that might contribute to this problem which are poor understanding the job description, lack of understanding the training and development program and lack of discipline among the employees. Perhaps, there are also other factors that slightly contribute to broad gap of competencies between employees in CIMA Bhd such as stress and under performance.
In this matter, one of the major components that can be used is performance management system. Performance management system is typically based on personal competencies that distinguish high from average performance for successful employees or managers (Suzana, 2010). Thus, for those that recorded below what this performance management system had expect, is consider under performance, and this will lead to the broaden of competency gaps.
Independent Variables
Dependent Variables
Lack of understanding the job
description
Employees‟ perceived lack of training
Competency Gap
Low level of discipline
Figure 1.1: Factors contribute to the competency gap
1.5 HYPOTHESIS
There are three (3) hypotheses that we can build based on the literature and the model and were tested in perspective of the previous studies and literature. The literature and various studies concluded that competency gaps exists in CIMA Bhd because of three main reasons which are lack of understand the job description, lack of satisfaction towards training program and low level of discipline between employees. The hypotheses of this study as below:
1.6.1 HYPOTHESIS 1
H o There is no significant relationship between lack of understanding the job description and competency gap.
H 1 There has significant relationship between lack of understanding the job description and competency gap.
1.6.2 HYPOTHESIS 2
H o There has no significant relationship between lack of satisfaction towards training program and competency gap.
H 2 There has significant relationship between lack of satisfaction towards training program and competency gap.
1.6.3 HYPOTHESIS 3
H o There has no significant relationship between low level of ethics and competency gap.
H 3 There has significant relationship between low level of ethics and competency gap.
1.7 SIGNIFICANCE OF STUDY
This study is relevant and significant for several reasons. Firstly, it can be used as a tool of reference for every company especially CIMA Bhd and generally to other companies that spent a big portion of budget to send their employees to training programs. The cost of training is very high and it is only worth the money if the desire outcome which is to increase employees‟ competencies is successfully achieved. This research will investigate ways to aid training programs reduce the competencies gap among employees.
Secondly, the training cost is very high and not every company could afford to make
such a big financial outflow for human capital investment, especially infant companies.
Nonetheless, it is vital for the company to increase employees‟ competencies. Therefore, the
findings of this research may help to identify several methods to improve employees‟ competency level as alternative to training program.
Finally, the study is crucial to support previous researches relating to competencies gap because despite numerous studies being conducted by previous researchers relating to the topic, the problem is still scarcely solved. The findings provided by this study will provide more ideas on ways to reduce competencies gap among employees.
1.8 SCOPE OF STUDY
This research will investigate the contributing factors to a big competencies gap between the required level of competencies and actual competencies acquired by the
employees.
First, the researcher will analyze the poor understanding of employees towards their job description that leads to the problem. Besides, it also touched on the issue of the effectiveness
of the training program provided to the employees. Another potential factor of contributing to
the broad gap of competencies among employees that can be identified is the low level of discipline.
This research will involve executives and non-executives in CIMA Bhd, specifically those who are in the UN and UE level after being in the job grade for more than 2 years. This is because the researcher believes that employees who are in the job grades for more than 2
years would be able to provide better information for the researcher to conduct the research.
The reason why the researcher choose these employees as data providers, it is because these employees are the main contributors to CIMA Bhd. Employees who are in the executives and non-executives level are the largest in number of CIMA Bhd.
1.9 LIMITATION OF STUDY
There are several main barriers that need to be faced by the researcher in order to conduct this research. Firstly, time constraint. Due to time limitation, the researcher need to rush on everything that needs to be done acquired to complete this research. Everything from completing the proposal to construct the questionnaire, it needed to be done wisely because the researcher also still undergoes internship program at CIMA Bhd. So, there is a limited time to do the office job at the same time, to complete this proposal and research as a whole.
Second limitation that has to face by the researcher is financial. As a student, the researcher does not have sufficient income to execute some plans in the making of the report. The costs included transportation costs, costs in collecting information data, printing costs and so on. Furthermore, the costs of paper are rising up recently.
Third limitation is the refusal of respondents to cooperate. There are several respondents that refuse to cooperate in this research as they think it might be confidential for certain data that need to be disclosed. They are also somewhat refuse to answer the questionnaires with open heart because they might think that it come down from management and whatever answer will be affecting their stability at the organization. There are also several respondents that hardly to understand the questionnaire as it had been constructed by using uncommon terms in daily life.
Fourth limitation is lack of experience. The researcher less expose to the preparation of actual research before, thus researcher has lack of experience in preparing this research comprehensive. Despite this, the researcher is working hard and committed to complete this research properly.
1.10 DEFINITION OF TERMS
1.10.1 COMPETENCY
According to Suzana (2010), competency can be defined as behavioral skills combined with technical knowledge and skills that will serve as indicators of success in a position. Added by Suzana (2010) also, competency contained underlying characteristics of an individual that is causally related to a criterion-referenced andor superior performance in a job situation.
1.10.2 COMPETENCY GAP
As stressed by Sitko Lutek (2007) which quoted by Sikora (2011), competency gap can be defined as a lack or deficiency of abilities that necessary to reach the goals and task of the organization or to achieve the results which the managerial staff regards to be attainable with the existing material and personnel resources.
1.10.3 TRAINING
According to Fitzgerald (1992) as quoted by Normala (2006), training can be defined as the process of providing employees with specific skills or helping them to correct deficiencies in their performance.
1.10.3 CAREER DEVELOPMENT
According to Gomez-Mejia, Balkin Candy (2004) as quoted by Normala (2006), career development is an ongoing and formalized effort that focuses on developing enriched and more capable workers.
1.10.4 JOB DESCRIPTION
As stressed by Noe, Hollenbeck, Gerhart Wright (2009), a job description is a list of tasks, duties and responsibilities that a particular job entails. It usually contained a job title, brief description of the job, list of the essential duties come along with job and major tasks and responsibilities.
1.10.5 DISCIPLINE
As Krishnan (2009) stressed, discipline can be defined as training for someone to follow
a rigorous set of instructions, but also punishing and enforcing obedience. He also examined that discipline is the set of rule that must be obeyed by individual in the organization.
CHAPTER 2
2.0 LITERATURE REVIEW
The literature and various studies concluded that factors such as understanding the job description, satisfaction towards training program and ideal standard of discipline can close the gap of competency among employees. The more understanding on job description and the training program that have been conducted and also the level of discipline, the more narrow on the gap of competency among employees towards what the organization had been set as competency level. There are also somewhat positive and negative relationships on the factors that contribute to competency gap with the competency gap.
This chapter discussed the literature used by different authors and sources, which have been used to build up the knowledge of the research to find the core theories for the theoretical framework. Generally, there are several literature and sources that discussed about the factors and the problem itself which is competency gap, but it came from different sources which need to be assembled in order to construct a good literature review. Different keywords had been used such as competency, competency gaps, job description and job evaluation, performance management system, working discipline, training and development.
From this literature review, the researcher viewed the actual problem and further information in order to conduct the research. This is will help the organization generally and managers also employees specifically in order to perform at their best. The researcher also got the benefits from this literature review as for the future references.
2.1 Competency Gap
Competency gap occurs when there is certain competency had been set by the organization not being fulfilled by the employees. As have been stressed by Suzana (2010), competency can be defined as behavioral skills combined with technical knowledge and skills that will serve as indicators of success in a position. Added by Suzana (2010) also, competency contained underlying characteristics of an individual that is causally related to a criterion- referenced andor superior performance in a job situation.
Azmi, Ahmad, and Zainuddin (2010) explained that there are two types of competencies which are essential or threshold competencies and differentiating competencies. Individual can
be successful in his or her job only when there is a match on both sets of competencies. Essential competencies are the knowledge, skills and abilities which are quite easy to develop through training. Meanwhile, the differentiating competencies or the underlying competencies are self concept, traits and motives which are hard to develop and therefore, they differentiate superior performance from average performance.
According to Boyatzis (1982) as quoted by Azmi, Ahmad, and Zainuddin, the concept of competency have been used in Human Resource Management to differentiate between the successful managers and the not successful one. He found that there were so many factors in determining their success such as quality, motive, experience, and behavioral traits. Thus, these competencies are much needed for organization in their employees‟ qualities in order for the organization to continue the success. Also according to McClelland and Boyatzis (1980) as quoted by Azmi, Ahmad and Zainuddin (2009) defined that competencies are knowledge, motives, traits, self images, social roles, and skills that result in superior performance in job.
As we adapted from another source which from Azam et al (2009) as quoted from HRM- XL (2007), defined that competency analysis is specific, identifiable, definable and measurable knowledge, skill, ability, andor other deployment related characteristics such as attitude, behavior, and physical ability which a human resource may possess and which is necessary for or material to, the performance of an activity within a specific business context. According to Moqvist (2002) as quoted by Azmi, competencies could be of five different types which are psychomotor, cognitive, affective, personality and social.
According to Aitchison as cited by Long, lack of certain competencies (in performing job or task) is the one of the main barriers for the ability of HR professionals to play more strategic role in an organization (Aitchison, 2007). According to Boyatzis (2008), competency can be defined as capability or ability. In general term, competency can be defined as personnel related concept referring to a set of behavioral dimensions of HR professionals‟ effective performance at work. Some authors suggest more precise definitions that describe competencies as the work-related personal attributes (Long Ismail, 2008): knowledge, skills, and values that individuals draw upon to do their work well (Selmer Chiu (2004) as quoted by Long Ismail, 2008).
According to Sikora (2011), competency gap will lead to negative effect in such it will hinders or even worse will make it impossible for organization to develop or even poses a threat to its further existence, hinders improving the company‟s competitive position and hinders creating innovation of products, processes or business models. According to L.Spencer and S.Spencer (1993) as quoted by Beheshtifar and Mogdaham (2011), competency includes motives, traits, self-perception, knowledge and skills. Lack in any of these features can lead to competency gap.
Another definition also stated that competency gap can be defined as the difference between the desirable (in managers‟ opinion) competences and the actual ones, between the structure and the level of competences owned by the managerial staff and the desirable or required competences (Sikora, 2011).
However, added by Sikora (2011), competency gap may be motivating to introduce changes in the company and it orientates the process of the organizati on‟s improvement. In this case, Sikora (2011) stressed that competency gap is of a dynamic character and it seems necessary to adopt a perspective of an analysis which will take into account not only an approach in the context of widely understood organiza tional “resources”, but also their active utilization in order to understand this phenomenon comprehensively.
2.2 Job Description
As cited by Gan and Kleiner (2005), job description is the essential hiring tool which describes the skills and knowledge required by the position as well as character traits and physical requirements. This gives job seeker an idea of what kind of person the position is intended for and helps the employer identify the best applicant for the position.
Gan and Kleiner (2005) also stressed that a job description can aid defining reporting relationships. It outlines the firm‟s organizational structure and the position‟s level of authority and span of control. An effectively job description can give employees a clue as to whether the organization is bureaucratic or flexible in nature. It also helps the employees to understand who shehe must report to, who must report to them and what responsibilities the employees have jurisdiction over.
According to Michalska (2002), a precise description of job and the succeeding implementation of job positions, linked to the strategic goals of a firm, make the firm structure clear and, consequently, efficient. To sum up the definition, any job description that well- describe the job, task and responsibilities, will be well-understandable by the employees.
According to Azmi, Ahmad and Zainuddin (2011), there are several reasons why performance of the employees not up to scratch which is the first the employees had no idea what is expected of them. This thing happens because the employee does not understand the job description that had been assigned to them. They had no clear idea about their actual task in the organizations, and the gap of competencies exists. According to Azmi, Ahmad and
Zainuddin (2011), an individual can be successful in his or her job only when there is match on both sets of competencies.
In several cases, managers are overloaded with responsibilities and do not have time to spend analyzing every nuance of a situation. Moreover, people in the organization usually differ in their needs, personalities and attitudes towards their work and management. Therefore, managers must frequently deal with many problems simultaneously and must rely on their experience gained throughout their careers to do the job to the best of their abilities (Plessis, Beaver, and Nel, 2006).
In many cases employees perform below standard because they do not receive timely and accurate feedback on their performance. An important first step in improving performance is clearly identifying job expectations. The development of work plans for individual employees, along with measurable standards of expected performance and reporting mechanisms can help significantly in clarifying expectations (Alexander, 2000).
As for the problem, that is why organization need job description. According to Noe, Hollenbeck, Gerhart and Wright (2009), job description is a list of the tasks, duties, and responsibilities that a job entails. Job description usually consists of four components which are the title of the job, a brief description, the essential duties with detailed specifications and the task and responsibilities when carry out the job.
This job description may change depends on the organization but the format still the same and it will helps organization make consistent decisions about such matters as pay and promotions.
2.3 Training
One of the methods to increase motivation and perhaps skills for employees is training. According to CIPD (2005) as quoted by Chowdhury (2006), training is an instructor-led, content- based intervention, leading to desired changes in behavior. Training is usually associated with the performance of people in their job. Performance gaps that exist imply that there is a shortfall somewhere in their knowledge andor skills to undertake certain roles or tasks (Anitha Thenmozhi, 2011).
According to Brum (2007), training is of growing importance to companies seeking to gain an advantage among competitors. There is significant debate among professionals and scholars as to the affect that training has on both employee and organizational goals. Training can have a considerable influence on company finances as there are several potential training costs that companies may incur.
He also added as cited from Colarelli Montei, (1996) and Becker (1993), one school of thought argues that training leads to an increase in turnover while the other states that training is a tool to that can lead to higher levels of employee retention. Brum (2007) also stressed that along these lines, once a training program is completed, employees‟ productivity is expected to increase.
The benefits will be to the company, due to an increase in worker output and productivity, and to the worker, as the increase in output should translate into higher wages and opportunities for career advancement.
As implied by Greig (1993), increased training budgets in industry to meet the requirements of technical change and economic growth, reinforced greatly by State intervention in training (see below), have greatly increased in the space of barely two decades the number of individuals who work out of offices with doors marked as "Training".
According to Landale (1999) as quoted by Ahmad and Din (2009), in human resource management, training and development is intended to enhance the performance of employees through a learning process that involves the acquirement of knowledge, improvements of skills, concepts, rules, or changing of attitudes and behaviors in organizational settings. Training improves the knowledge, skills and attitude of the workforce and their services (Marquardt, 1996 as quoted by Ahmad and Din, 2009).
Ahmad and Din (2009) also added as cited from Yadapadithaya (2001), training prepares employees for the new job while development is essential for future assignments. Global competition has made training and development a viable tool for all kinds of organizations. Training is indispensable for the success and productivity of national governments all over the world and they spend huge amounts on training and development. It leads to successful performance, institutions and nations (Becker, 1980 as cited by Ahmad and Din, 2009).
According to Madsen and Laursen (1998) as quoted by Anitha and Thenmozhi (2011), arguably organizations would much prefer other methods such as performance appraisal, informal feedback from line managers, and individual employees rather than fulfill their training needs for superior performance. This factor contributes to the lack of training and development among employees, which eventually broaden the gap of competency in the organization.
Why employees need training? We can always look back to the definite problem in this research which is competency gap. In order to identify the competency gap which may exist in the organization, there is a need of conducting competency gap assessment. Competency gaps assessment is a process of separating the job tasks into those for which training needed and these for it is not and then developing and individual training plan for accomplishing the needed training (Anitha and Thenmozhi, 2011).
It showed training and development is important to develop skills and knowledge of the employees. However, according to PSDM (2004) as quoted by Azmi (2010), in order to close the competency gap, the responsibility not only behold on the shoulder of employers alone, somehow rather it must be on the individual employees‟ initiative to prioritize the training and development needs which would produce the greatest impact on performance (Azmi, 2010).
In order to bridging the competency gap, training that have been used must be fairly effective. Training effectiveness, as examined by Fardaniah and Ahmad (2011) which cited from Goldstein (1986) is refers to the systematic acquisition of skills, rules, concepts or attitudes that results in improve performance. Fardaniah and Ahmad also added as cited from Noe (2009), training effectiveness also defined as the benefits that company and trainees receive from training.
According to Haslinda and Mahyudin (2009), there are three factors that influence the effectiveness of training, which may can directly or indirectly affect the competency gap. Firstly, as defined by Haywood (1992), is the human resource policy on training and development program. He mentioned that too many training program place emphasis on ease and the very purpose behind the design of program namely, learning, skill development and behavioral change, has defeat the original goals and purpose of training are lost and mean all too readily become the end.
Haslinda and Ahmad added also as cited from Bumpass (1990), the trainer‟s capabilities as a subject matter would determine the effectiveness of training and development program. Finally, as quoted from Facteau et al. (1995) from Haslinda and Ahmad (2009), is the commitment from top management to the training and development is critical to its success. Organizations whose top management view training as a way to meet organizational goals by Haslinda and Ahmad added also as cited from Bumpass (1990), the trainer‟s capabilities as a subject matter would determine the effectiveness of training and development program. Finally, as quoted from Facteau et al. (1995) from Haslinda and Ahmad (2009), is the commitment from top management to the training and development is critical to its success. Organizations whose top management view training as a way to meet organizational goals by
According to Low (1998) as cited by Haslinda (2009), the fundamental issues regarding human resources‟ lack of capabilities and intellectual abilities are said to be grounded in their levels of education and technical training (Low, 1998). It has been reported that organizations are faced with a challenge in acquiring high caliber human resources with adequate levels of education according to O‟Connell (1999) and Streumer et al, (1999) as cited by Haslinda (2009). For instance, according Silver (1991) as referred from Haslinda (2009) reported that studies have shown that employees in British firms are seen to have low levels of educational and training qualifications compared to their competitor nations.
Turning to the transfer of learning, the extent to which employees are able to apply the knowledge, skills and attitudes acquired during any HRD intervention into the job context is viewed as a key consideration in HRD practice as mentioned by Haslinda (2009) from Wexley Latham (1991) and Yadapadithaya Stewart (2003).
2.4 Discipline
When we talk about discipline, we straightly relate it to the attitude and behavior at the workplace. Generally speaking, discipline is related to the way we act at one situation or in this case, at the workplace.
According to Breacher and Trowler (2001) as quoted by Krishnan (2009), discipline is not a straightforward one. The disciplines are so different from each other that it is hard to come up with a concise definition that would fit all of them to the same degree. It can be many things at the same time and it is worthwhile to look closely at the various meanings of the word.
Discipline refers to the actions imposed by an organization on its employees for failure to follow the organization's rules, standards, or policies. Traditional approaches to discipline, based on punishment, are known to promote adversarial relationships between leaders and followers ( http:www.enotes.com ) .
Krishnan (2009) cited according to Balkin (2001), the word discipline is derived from the Latin word discipulus which means pupil, and disciplina which means teaching. As for definition in dictionary, it will give a whole range of quite different meanings of the term from training to submission to an authority to the control and self-control of behavior (Oxford English Dictionary, 2009). As a result, there is an importa nt moral dimension to „discipline‟ that defines on how people should behave or think.
There are many definitions of discipline that we can consider. However, there are still problems occurred while there are people out there that understand about discipline. Among the reasons, according to Redeker et al (1989) as quoted by Alexander (2000), are they do not clearly differentiate between performance and persona problems and legitimate discipline cases. Secondly, added by Redeker et al (1989) as cited by Alexander (2000), they place There are many definitions of discipline that we can consider. However, there are still problems occurred while there are people out there that understand about discipline. Among the reasons, according to Redeker et al (1989) as quoted by Alexander (2000), are they do not clearly differentiate between performance and persona problems and legitimate discipline cases. Secondly, added by Redeker et al (1989) as cited by Alexander (2000), they place
Alexander (2000) added, there are four distinctive types of performance and disciplinary problems faced by management;
Type 1: Situations where the employee‟s quality andor quantity of work is unsatisfactory Type 2: Situations where personal problems that is off the job, are influencing the
employee‟s work performance (e.g. alcoholism, drug abuse, financial or family problems).
Type 3: Situations where there has been a deliberate violation of the law or established company rules or regulations, e.g. through theft, fighting, falsification of records, conflict of interest, harassment or safety infractions.
Type 4: Situations where there have been repeated minor violations of company rules, regulations, or performance problems that have not responded to non-disciplinary corrective action, e.g. minor safety infractions, incidental and subordination, uncorrected tardiness or continued poor quality workmanship.
As stated also from enotes.com as adapted from Encyclopedia of Business and Finance, there are some examples of discipline problem committed by employees such as absenteeism, abusing customers, abusive language towards supervisor, causing unsafe working conditions, stealing and etc.
According to Champagne and McAfee (1993) as quoted by Guffey and Helms (2001), discipline have three distinct meanings which are; the punishment for a violation of work rule or direct order, training that molds and strengthen the employee‟s behavior and control gained by enforce obedience.
2.5 Theory X and Theory Y
As quoted by Russ (2011), he mentioned that McGregor (1960) introduced two theories that generically called as Theory X and Y due his distaste for descriptive labels. Russ added that d rawing on the work of Maslow‟s (1970) hierarchy of needs, these theories offer two particu lar views of work, management, and organizational life. McGregor‟s frameworks are grounded in the premise that the ways managers motivate employees are largely dependent upon beliefs about human nature. See McGregor (1960) for an exhaustive review of the range of possible implications and beliefs resulting from each set of theory XY assumptions.
McGregor (1960) predicted that managers possessing a theory X orientation assume that employees usually seek to only meet lower-order physiological and safety needs through tangible rewards (e.g. pay and bonuses) as well as through the avoidance of disincentives (e.g. threats and discipline). Theory X managers typically assume employees possess unfavorable opinions about work, are incapable of self-direction, need top-down direction, must be forced to work, and avoid taking responsibility for Theory XY assumptions organizational results. Russ examined as he quoted from McGregor (1960) theory X managers usually assume that employees must be “controlled, directed, [or] threatened with punishment to get them to put forth the adequate effort toward the achievement of organizational objectives” (McGregor,1960)
McGregor (1960) predicted that managers with a theory Y orientation often assume that employees typically have an instinctual motivation to perform, hold themselves accountable for achieving results, and are capable of self-direction and self-control. In this vein, theory Y managers usually assume employees are motivated to meet higher-order needs through accomplishing meaningful work, being involved in making work-related decisions, and providing valuable input to enhance an organization‟s effectiveness. According to McGregor (1960) as quoted by Russ (2011), a theory Y manager often assumes an employee “will exercise self- direction and self-control in the service of objectives to which he is committed”.
CHAPTER 3
3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
In this chapter, it explains the method and tools that will be used in this research. It provides details of the research design, which is necessary to gain better insight of the underlying methodological theories. Research design focuses on the end product such as the kind of study that is planned and the kinds of results expected. It directs the researcher to the kind of evidence that is required to address the research question adequately. The research methodology focuses on the research process and the kinds of tools that will be used for the research. In other words, it focuses on individual steps in the research process and the most suitable procedures that were employed. These two research methods were utilized by the researcher to obtain necessary information from executives and non-executives in CIMA Bhd that will be used for this research.
3.2 RESEARCH DESIGN
According to Shields and Twycross (2003) as quoted by Moayedi (2009), research can
be classified into two types of methods: quantitative and qualitative. Quantitative research is used for descriptive historical research, and correlation research (Salkind, 2003 as quoted by Moayedi, 2009).
The researcher use quantitative research methods as this would be most suitable for this study, which to examine the factors contribute to the competency gap in CIMA Bhd. Furthermore, this would help to gain a better understanding of the research problems that have been identified. The research method is discussed in detail in the following sub-sections.
3.3 DATA COLLECTION METHOD
In this research, the researche r‟s data of information mainly come from 2 sources of information which consist of primary data and secondary data. The primary data method includes interviewing and distributing the research questionnaire. Meanwhile, the usage of secondary data come up from internet sources, article and online journals for better understanding in the researcher‟s topic from time to time. The techniques that have been used are:
3.3.1 PRIMARY DATA
a) QUESTIONNAIRES
Before handing out the questionnaire, the researcher already asked permission from the HR Manager at CIMA Bhd, Puan Surayah Abu Mansor verbally. She agreed to compromise in order to help the researcher to collect data form CIMA Bhd. Questionnaires will be handed out head to head in their department. Since CIMA Bhd has no specific department for each employee, it will be randomly given during tea break, lunch, or put on their table. The designed questionnaire was divided into two sections, namely the demographic information section (A); and the content-based questions section (B). The questionnaire is design so that employees are able to complete it within ten minutes.
(i) Section A: DEMOGRAPHIC INFORMATION
This section comprises of 7 variables such as gender, age, years of service, staff grades, marital status, department and income per month.
(ii) Section B: JOB DESCRIPTION
This section focused on dimensions that related to competency gap in CIMA Bhd. This section includes 10 questions involving matter of understanding the job description of each executives and non-executives at CIMA Bhd.
(iii) SECTION C: TRAINING
This section is focused on the question that regards to the employees‟ preceived towards their training through the working services at CIMA Bhd. This section included 10 questions.
(iv) SECTION D: DISCIPLINE
This section included 15 questions that focused on the matters of discipline acted by the respondents during at their workplace.
(v) SECTION E: COMPETENCY
In this section, there are 16 questions that regards on the matter of employees‟ competencies towards their job at CIMA Bhd.
(b)
OBSERVATION
The researcher has applied the observation method in order to assist in the study at CIMA Bhd among the employees.
(c)
DIRECT INTERVIEWS
The interview was done with the manager of HUMAN RESOURCE at CIMA Bhd, Puan Surayah Abu Mansor and the senior clerk, Puan Mawar.
3.3.2 SECONDARY DATA
Secondary data includes information made available by business and government sources, a published material and computerized data. These data were collected and easily at a relatively low cost in a short time. Therefore, both the internal and external secondary data would be used to provide the direction for the primary research. This kind of data divided into two which is:
a) EXTERNAL DATA
External data were gathered from other sources outside Bank Islam such as published data from local newspaper (The Star, Berita Harian, annual report,books, journals and most importantly is through their website). Meanwhile, external data were also collected from reference unpublished project papers and previous research project.
3.4 POPULATION
The population of respondents consists of non-executive (UN) and executives (UE) at CIMA Bhd. It included CIMA Bhd employees at Headquarters in Mercu UEM, Kuala Lumpur, NCSI Bahau Plant, CIMA Bukit Ketri at Perlis Plant and other subsidiary of CIMA Bhd such as KPSB at Faber Tower, Taman Desa. Respondents were given questionnaires at their workplace and via email and they are free to answer the questionnaires when they are less busy.
3.5 SAMPLING METHOD
The survey research, which they claim is the best method available to social scientists interested in collecting original data to describe a population that is too large to observe directly. The population in this study compiled non-executive (UN) and executive (UE) in CIMA Bhd that have worked with the organization for at least one (1) year. For the purpose of this study, a total of about 100 non-executive and executive staffs are survey.
The study sample contained of one hundred (100) respondents from the two different grades which are UN and UE chosen in the CIMA Bhd to participate in the survey. There was a sampling method involved in this research, which is disproportionate stratified random sampling method. Through this sampling method, the data were collected on different information regarding different strata within the population which are differs in their parameters.
The data were collected through data collection process in two different categories; executives (UE) and non-executives (UN). Due to unequal numbers of elements in each stratum, disproportionate stratified random sampling method is the most appropriate sampling design. For the sampling size, as mentioned earlier, one hundred (100) questionnaires will be distributed to both executive and non-executives employees at CIMA Bhd.
3.6 DATA ANALYSIS AND INTERPRETATION TECHNIQUES
In this research, data processing will be taking place in series of process starting with coding all the raw data from questionnaire, data entry in SPSS, data editing to make some checking and adjustment, data analysis, and finally data interpretation for findings and recommendation.
For data analysis, the researcher used the descriptive analysis for the data arrangement and analysis to interpret the data to the meaningful information based on the question that being address to the respondents. The data arrangement had been done properly and obtained important information regarding the research topic and to make the correct conclusion about the current situation by the public.
There are a few techniques that can be used to analyze the data. It consists of:
3.6.1 FREQUENCY DISTRIBUTION
It is a process of organizing a set of data by summarizing the number of times a particular value of variable occurs. The objective of this distribution is to obtain a count number of responses associated with different values of one variable and focus on demographic profiles such as gender, age, years of working, department and staff grade. The process begun by recording the number of times a particular value of variables occur this is the frequency of that value. In this research, frequency distribution table would display the counting of responses for each of the categories assigned to the variables.
3.6.2 RELIABILITY TEST
Reliability is the degree to which measures are free from error and therefore yield consistent results. It is most understood that the popular test of reliability is the Cronbach ‟s coefficients alpha which is used generally for multipoint scaled items. In this study, the higher the coefficients, the better the measuring instruments.
3.6.3 SIGNIFICANCE TEST
This test is to measure either the research that being made is important or significant to the field of the study, public, researcher and others. If the amount achieve it target that means the research is valuable to do so.