International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 [Vol. 2 No. 4 December 2020]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
ON-THE-JOB TRAINING VERSUS OFF-THE-JOB TRAINING:
IMPACT ON EMPLOYEE PERFORMANCE AT FRANCHISE RESTAURANTS IN KLANG VALLEY
Putri Dahlia Ab Rashid1*, Syarifah Atifah Syed Hamzah2 and Azra Hanun Ramli3
1 2 3 Faculty of Hotel and Tourism Management, Universiti Teknologi MARA, Cawangan Pulau Pinang,
Permatang Pauh, MALAYSIA
*Corresponding author: putri.dahlia@uitm.edu.my
Article Information:
Article history:
Received date : 5 November 2020 Revised date : 15 November 2020 Accepted date : 27 November 2020 Published date : 4 December 2020
To cite this document:
Ab Rashid, P., Syed Hamzah, S., &
Ramli, A. (2020). ON-THE-JOB TRAINING VERSUS OFF-THE-JOB TRAINING: IMPACT ON EMPLOYEE PERFORMANCE AT FRANCHISE RESTAURANTS IN KLANG VALLEY. International Journal Of Business And Economy, 2(4), 43-56.
Abstract: The purpose of this study is to study the relationship between on-the-job training and off-the-job training towards employee performance; and to determine the strongest factor influencing employee performance among Franchise Restaurants’ staffs in Klang Valley.
Training is a way of learning in the working world conducted by organizations for individual staff development and help to increase the skills of a person for future responsibility. Department of Human Resources has the responsibility in organizing the training for all the organization's employees. However, far too little concentration has been paid to examine the impact of training towards employee performance in Malaysia especially in Klang Valley area. The study was conducted at franchise restaurants in Klang Valley since the number of franchise restaurants in this area are continuously increased. Data were collected by adopting the convenience sampling method using self-administered survey questionnaire. A total of 197 respondents were gathered for this study. Pearson Correlation analysis was conducted to see the correlation between independent variables and dependent variable. The findings indicate that employee performance is significantly influenced by both on-the-job training and off-the-job training. It was also found that off-the-job training have stronger impact towards employee performance. In conclusion, although both independent variables are proved as determinants of employee performance, the managements should lay great
1. Introduction
Training can be defined as a type of learning style in workplace initiated by respective organization among its staffs to aid in individual development and help to increase their skills for future responsibility (George and Scott, 2012). Department of Human Resources hold the responsibility in organizing the training for all the organization's employees. Training of employee is a method designed to improve technical knowledge, productivity, creating awareness and value with a much simpler way to complete a specific job. Training is a consistent action to gain higher employee’s knowledge and better performance as the way to perform well as a goal to improve on the employees’ capacity and performance (Enga, 2017). For instance, an employee will not be successful if he does not well prepared with proper knowledge, skills, ability and attitude.
Employees require extensive training to ensure that they learn how to properly do their work. For example, a restaurant company need to provide training program to educate their employees with required knowledge such as how to greet the customers, the communication skills and others.
Every new employee should be properly trained in not only developing skills, but also making the person as a part of the organization (Enga, 2017). Besides, training is helping employees to keep up with the latest trends and more advanced technologies in the market. Training is equally important for both new and long-term workers, as it is helping new employees familiarize themselves with their employment and continuously improve their skills and knowledge relevant to their work. By conducting an effective training, the better the workforce will be with the source of money and labour cost can be saved, and the time spent to solve any arising problems could also be lesser (Mohamud, 2014).
The major purpose of training is to enhance the performance of the workers in an organization.
When the training program is successful, the workers would be pleased with their profession and meet the scope of job satisfaction which leading to a good performance. In Klang Valley, there are a lot of franchise restaurants but several of them do not provide effective training program. This will eventually cause decreasing performance of the employees because the organization did not educate them with the right knowledge and practice in business restaurant. For example, a waiter at a restaurant is talking to someone on the phone while taking order from the customers. This shows a bad reputation towards not only the employee’s customer service performance, but also the company’s image. This study would concentrate on the impact of on-the-job and off-the-job training towards employee performance among franchise restaurants in Klang Valley.
emphasis on off-the-job training content to improve the performance of franchise restaurants’ employees.
Keywords: Employee performance, On-the-job training, Off-the-job training.
2. Literature Review
Training program is vital to any organization. Job training means the activities that give employees new knowledge, new capabilities or opportunities for professional development (Farooq & Aslam, 2011). According to Brum (2007), training is important for businesses and is a tool for organizations to generate productive workforce. The statement is supported by Enga (2017), who mentioned that training is a concept of increased productivity and security in the use of certain machinery or the need for productive sales. In a study by Farooq & Aslam (2011), it was also found that training will help the employees to become more familiar with technology and skills.
Raheja (2015) added that training helps the worker to perform the job better and found it as new concepts in everyday activity.
Training includes an expert who will learn to transfer certain areas of knowledge to the employees in order to improve their current jobs (Salah, 2016). Brum (2007) stated that investment in training is rising continuously as many companies now are aware of the benefits of training among the workers. This is not only vital to consider the importance and need for training, but it is also important to know why types and what sort of education is needed for a selected activity (Sadaf et al., 2014). Organizational performance can be enhanced if the employees shows their good work by active participation in every job task and contribute higher overall performance (Farooq &
Aslam, 2011). Training to the franchisee is a must and very necessary to ensure that the franchisee behaves in compliance with the requirement of the franchisor and the employees follow all the rules because any dishonest conduct by the franchisee will affect the company image (Razilan et al., 2013).
2.1 On-the-Job Training
On the job training is one of the simplest, most efficient and cost-effective way of training. A small amount of money, time and expenditure for equipment that is needed make this method of training is attractive (Bafaneli & Setibi, 2015). On-the-job training is required to boost employees’ overall working performance who have low academic qualifications when they are directly working in a situation of acute manpower shortage (Abdullahi et al., 2018). It is also the oldest form of training.
This method of training is to train the employees when they are working in the actual working environment. During on-the-job training, the employer should provide details knowledge and skills for the employees (Alipour et al., 2009).
According to Gerald (2018), employees should be trained to develop new skills and improve their performance and ensure an organization's performance improvement and growth. In addition, experienced manager used this method of training to train their staffs. The manager will guide the employees to complete their task successfully in order to achieve the company mission. Coaching is outlined as one to one learning that could spot issues problems at weak location in a short time and make the attempts to specialized regarding the issues (Raheja, 2015). Good quality employees depend on the degree of coaching system that the company has put in place. Studies have shown that coaching is positively affect an organization's employee performance. Furthermore, coaching could benefit businesses in boosting their productivity, optimize advantages and reduce costs (Shem & Ngussa, 2015).
2.2 Off-the-Job Training
Off-the-job training is conducted in a way that employees undergoing their training session away from their actual working environment. Raheja (2015) stated that off-the-job training methods are carried out separately from the work environment, study materials are provided, learning is more focused than performing, and freedom of expression is available. One type of off-the-job training method is conference, considered a traditional and direct method of instruction (Raheja, 2015).
Conference is a method of training and development involving presentations to a wide audience.
The cost of training is lower because a big number of employees will involve in a conference for the same topic, same place and at the same time (Nassazi, 2013). The speaker must have considerable depth in the subject. In colleges and universities, lectures and seminars are the most common methods used for training. However, the lectures given need to be motivating and creating interest among trainees.
Another form of off-the-job training suggested by Raheja (2015) is roleplay. This method includes discussing problems and ideas in a company environment for debate. Trained employees provide some data on defining the positions, worries, priorities, obligations, feelings, and many more. The effectiveness of this method will get higher if the stress level in the environments is minimal. For many employees, such as those in the sales or customer service area, management and supporting staffs, this training method is effective. Each trainee takes the role of a person affected by a problem and studies the influence of human life issues and/or the effects of human activities on the environment around us from that person's perspective (Raheja, 2015).
2.3 Employee Performance
Employee is said to be a blood stream or any company's assets (Elnaga, 2013). The company's success depends on the value of its employees. Performance outcome is achieved with fulfilments of specific task estimated precision, completeness, cost and pace of predetermined or defined guidelines (Sultana et al., 2012). According to Tahir et al. (2014), performance refers to the outcome of something or a mere efficiency of work. Better performance indicates how well workers achieve the tasks assigned (Sultana et al., 2012). The success of the individual is crucial for the company to take every opportunity to keep poor performers (Farooq & Aslam, 2011). This is supported by Said et al. (2016), the quality of the worker is critical for the organization to monitor and make every attempt to improve small-performing people in their tasks. Training is the most important significant performance variable of employees and it is important to improve employee capacity (Khan et al., 2011). Thus, the top management must realize the importance of investing for employee training.
2.4 Service Quality
One of the important and essential factors that affect service quality is training (Zumrah, 2014).
Service is intangible, and compared to products, it is more difficult to measure physically. High- quality service delivery is vital to the survival of organizations so that they can thrive, and the restaurant industry has not been spared from increased competition or consumer demand for high- quality service (Ramseook-Munhurrun, 2012). Service plays a major role in any franchise restaurant as the customer expects the employees and restaurants to provide the best quality of service. Employees who have learned and acquired new knowledge, skills and attitudes from their training will apply to their workplace, allowing them to demonstrate a higher quality of service to their customers (Zumrah, 2014). Clients who receive the highest level of service will be satisfied and the chance of revisit the restaurant is high. The better the employee performance, the better the service quality of the franchise restaurants.
2.5 Problem Statement
Most public sector agencies engage in training of staff and have specialized departments, units and sectors in charge of training and development. Employee training is one of the important factors for organizations’ success world over. Employee training costs are high, but these costs are of course much lower than high profits that can be gained by proper employee training (Sadaf et al., 2014). Most of the companies are encountered many problems regarding their employees like lack of commitment, absenteeism, having insufficient knowledge and skills, turnover, motivation and capabilities (Sadaf et al., 2014). These problems arise because of overall lack of training, and ineffective training programs. Most of the organizations do not provide employees’ training or the training programs are simply not enough for the employees.
According to Said et al. (2016), there are a wide range of research on the relationship between training and employee efficiency, but there appears to be a void in the study of the impact of training on employee performance. One of the fastest growing sectors, the restaurant industry is likely to continue its growth into the future (Munhurrun, 2012). Therefore, the researcher decided to do analysis among the franchise restaurant employees in Klang Valley on the effect of training and development on employee performance. The objectives of this study to examine the relationship between on-the-job training and off-the-job training towards employee performance;
and to determine the strongest factor influencing employee performance among Franchise Restaurants’ staffs in Klang Valley.
3. Method
In this study, descriptive research which involves making cautious clarifications of educational occurrences by involving survey has been used. The characteristics of some people, thought, and awareness are being interrelated as the purpose of the survey (Creswell, 1999). This includes describing the characteristics of a group by means of questionnaires instrument. It focused on impact of training towards employee performance who working at franchise restaurants in Klang Valley as the primary objectives and thus, causal study is the type of measurement used and the unit of analysis is among individuals who are working at The Manhattan Fish Market, Secret Recipe, Seoul Garden and Starbucks restaurant in Klang Valley.
3.1 Materials
Data for this study were collected using self-administered survey questionnaires. A total 197 out of 300 respondents answered the questionnaires.
3.1.1 Samples
As this study is dealing with all individuals who are working at The Manhattan Fish Market, Secret Recipe, Seoul Garden and Starbucks restaurant in Klang Valley, a convenience sampling is therefore chosen. The sample taken in non-contrived setting environment using self-administered questionnaire that been designed in form of booklet design which looks easy to answer and professionally designed to obtain response from respondents. To make sure accomplishment of the study, the appearance of the instrument is very important; it should be easy to answer as possible, not too long and attractive in a manner to catch the attention of the respondents.
3.1.2 Site
There are a lot of foreigners that are working in Klang Valley especially for franchise restaurants.
The labour market is expanding to the manufacturing and services sectors across the Klang Valley and the other major towns such as in Penang, Johor Bahru and Ipoh and it is said that the foreigners are employed with low skilled work in services, domestic works, manufacturing, plantation and construction (Malaysian Employers Federation 2014).
3.1.3 Procedures
This study is an observational study, with the main objectives being to identify which type of training method having the stronger impact on employee performance. To accomplish this, two objectives were recognized for this study. The first objective in this research was to study the relationship between on-the-job training and off-the-job training towards employee performance.
Objective 2 in this study is to determine the most influencing training method on employee performance.
Assessing the respondent’s general information is essential in order to demonstrate that the research is reliable and comprehensive. Furthermore, the general information demographic questions provide an overview of the study to the respondents. Table 1 describes the general information of respondents. As shown in Table 1, out of overall the respondents that participated in the survey, there were 99.5 percent of respondents know the meaning of training program. Most of the organizations have conducted the training program frequently which is 98 percent. While 100 percent of the respondents have the experience of attending the training program. 95.9 percent employees in the organization think that all employees have attend the training program.
Meanwhile, 98.5 percent of the respondents were satisfied with the training procedure. Hence, most of the respondents with 99.5 percent think that training program is compulsory for the employees in the organization.
Table 1: General Information Result
Variable Frequency Percentage
Do you know what training is
Yes 196 99.5
No 1 0.5
Is your organization conducting training program frequently
Yes 193 98.0
No 4 2.0
Have you attended any training programme
Yes 197 100.0
No 0 0
Do all the employees in your organization attend training
Yes 189 95.9
No 8 4.1
Are you satisfied with the training procedure
Yes 194 98.5
No 3 1.5
Do you think training program is compulsory for employees
Yes 196 99.5
No 1 0.5
The following Table 2 shows the demographic profile of the 197 respondents.
Table 2: Demographic Profile Result
Variable Frequency Percentage
Gender
Male 103 52.3
Female 94 47.7
Age
Less than 20 years old 4 2.0
20-25 years old 81 41.1
26-30 years old 69 35.0
31-35 years old 21 10.7
36-40 years old 16 8.1
41 years and older 6 3.0
Marital status
Single 102 51.8
Married 87 44.2
Divorced 8 4.1
Race
Chinese 5 2.5
Malay 126 64.0
Indian 15 7.6
Others 51 25.9
Duration years of working
Less than 6 months 19 9.6
6 months 21 10.7
Less than 1 years 61 31.0
1-5 years 75 38.1
5 years and above 21 10.7
Educational level
SPM 32 16.2
Certificate 41 20.8
Diploma 84 42.6
Degree 39 19.8
Master 1 0.5
3.2 Data Analysis
Pearson Correlation Coefficient was used to test the hypothesis.
3.2.1 Validity and Reliability
Reliability analysis is a measurement test to measure the strength or consistency of a research study. Cronbach’s alpha is used to measure reliability of the internal consistency which ranged from 0 to 1. The closer the Cronbach’s Alpha Coefficient 1.0, the greater the consistency of the items. Table 4.3 below show the rules of Cronbach Alpha.
Table 3: Reliability Analysis Result
Variable Number of Items Measured Reliability Result
On-the-Job Training (IV) 5 0.946
Off-the-Job Training (IV) 6 0.940
Employee Performance (DV) 7 0.971
Table 3 shows the result of reliability analysis of instrument tools used in this research. Since all the alpha coefficient values generated were greater than 0.70, these prove that further analysis can be proceeded. The number of items measured for on the job training is 5 and the reliability result is 0.946 which the stability was excellent. Hence, off the job training has 6 number of items measured and 0.940 of reliability result and the stability was excellent. Moreover, the number of items measured of employee performance is 7 which the reliability result is 0.97 which was excellent.
Table 4: Reliability Test for All Variables
Cronbach’s Alpha N of Items
0.977 18
Table 4 above shows the result of reliability test for all variables which is 0.977 which show an excellent ranking. The total items are 18 and each variable considered reliable.
3.2.2 The Relationship between On-the-Job Training and Employee Performance Ho: There is no relationship between on-the-job training and employee performance.
H1a: There is a positive relationship between on-the-job training and employee performance.
Table 5: Correlation of On-the-Job Training
On-the-Job Training Employee Performance
On-the-Job Training
Pearson Correlation 1 0.763**
Sig. (2 tailed) 0.000
N 197 197
Employee Performance
Pearson Correlation 0.763** 1
Sig. (2 tailed) 0.000
N 197 197
**. Correlation is significant at the 0.01 level (2-tailed).
According to Table 5, Pearson Correlation was used to evaluate the relationship between on-the- job training towards employee performance. On-the-job training correlation of Pearson is 0.763.
The result shows that there is a strong positive linear relationship between on-the-job training and employee performance. Increases of on-the-job training will increase the employee performance.
Since p-value < α (0.000 < 0.05), the researcher rejected H₀. Thus, this data is significantly correlated. It is clearly shown that on the job training positively affect employee performance.
3.2.3 The Relationship between Off-the-Job Training and Employee Performance Ho: There is no relationship between on the job training and employee performance.
H1b: There is a positive relationship between off the job and employee performance.
Table 6: Correlation of Off-the-Job Training
Off-the-Job training Employee Performance
Off-the-Job Training
Pearson Correlation 1 0.861**
Sig. (2 tailed) 0.000
N 197 197
Employee Performance
Pearson Correlation 0.861** 1
Sig. (2 tailed) 0.000
N 197 197 **. Correlation is significant at the 0.01 level (2-tailed).
Based on Table 6 above, Pearson Correlation was used to evaluate the relationship between off- the-job training and employee performance. Off-the-job training correlation of Pearson is 0.861.
The result shows that there is strong positive linear relationship between off-the-job training and employee performance. Increases of off the job training will increase the employee performance.
Since p-value < α (0.000 < 0.05), the researcher rejected Ho. Thus, this data is significantly correlated.
3.2.4 The Most Influencing Factor towards Employee Performance
Based on the data analysis on Table 6, it is shown that between the two types of training method analyzed, the strongest factor influencing employee performance is off-the-job training (r = 0.861).
The data proved that off-the-job training has the strongest positive linear relationship towards employee performance.
4. Results and Discussion
Both on-the-job training and off-the-job training method are found to have positive and significant relationship with employee performance. Thus, Pearson Correlation analysis supported both hypotheses. Hypothesis 1a stated that there is a relationship between on-the-job training and employee performance. Based on the outcomes of study conducted by Tukunimulongo (2016), it was concluded that on-the-job training programs could enhance employee capability as they investigated the effect of on-the-job training towards employee performance in Kenya. The findings from a study by Ndunguru (2015) established that training has positive effect on performance as trained employees showed willingness to continue working while those who did not undergo on the job training were unwilling to continue with their work.
Hypothesis 1b of the study stated that off-the-job training has a positive relationship with employee performance. Based on the outcomes of the study, the result shows that there is a positive linear relationship between off-the-job training and employee performance. Researchers from the previous study have proved that off-the-job training is important in improving job performance which can lead to improve productivity of the employees (Shem & Ngussa, 2017). Moreover, this study also found that off-the-job training has the strongest impact on employee performance among franchise restaurants’ staffs in Klang Valley. Because of the nature of off-the-job training program method, which conducted away from the actual workplace, where employees could unwind and been released from job-related stress, this could be the reason why the performance outcome are better compared to on-the-job training method. The employees tend to be more motivated and cheerful after the off-the-job training ended, as this is what required of them in franchise restaurant’s working environment.
5. Conclusion
The independent variables in this study which are on-the-job training, and off-the-job training were proved to have equally significant relationship towards employee performance in franchise restaurants. Both independent variables established in this study play important roles in assisting organization restaurants’ management in improving their training program. Some companies are known to only providing off-the-job training program, meanwhile some other companies only conducted on-the-job training program. Good working performance by employees can be achieved by every franchise restaurant, through conducting both on-the-job training and off-the-job training program, with greater emphasis on off-the-job training program. To succeed in today’s competitive marketplace, all franchise restaurant owners and managements must be willing to invest in continuous employee training programs. On-the-job training program, such as coaching and job rotation are beneficial in improving employees’ leadership, hands-on skills and multitasking skill;
while off-the-job training program, for example conference and roleplay, could enhance employees’ motivation, knowledge and know-how. This investment could be high in the beginning, but it is important for greater employee performance outcome which can lead to gain higher service quality provided to the restaurant customers. In a nutshell, training program is important to all employees of franchise restaurants in order to achieve great performance which could translate into good customer service and higher sales in the business.
6. Acknowledgement
Our utmost appreciation goes to the management of Universiti Teknologi MARA Cawangan Pulau Pinang for the great support in this research, friends from the restaurant industry, and finally, our family and friends. Thank you.
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