To determine how the employees perceive the benefits of training and development.

THE IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE’S PERFORMANCE AND PRODUCTIVITY AT SAUDI PORT AUTHORITY: CASE STUDY OF JEDDAH ISLAMIC SEAPORT

CHAPTER ONE 1: INTRODUCTION
This chapter justifies the need for the research and outlines the current study .The chapter provides the pertinent background information, states the research problem, research objectives, the scope and significance of the study, defines the important concept used in the study and lastly, briefly describes the organization of this report
1.1 Background Information
Human Resources have played a significant role in the economic development in most developed countries such as United States of America, Britain and Japan among others. It can, therefore be concluded that a developing country like Saudi Arabia, with its rich natural resources and the necessary financial support can also experience such economic success if the appropriate attention is given to the development and training of her human resource. It is thus seen that in Saudi Arabia, the government is taking adequate steps to ensure that people acquire the necessary knowledge and skills.
A number of initiatives are currently taking place in the country to ensure that performance is improved. Many technical and secondary schools are being built to help in improving employee skills. Moreover, vocational training colleges and institutes are being built alongside implementation of educational reforms to help in improving knowledge and skills and achieving the desires levels of performance and productivity (Al-Ghamdi, 2010).
With these efforts by the government, it has become necessary for organizations to provide long and systematic training and development programs for its employees. This is because every aspect and activity of an organization involves people. For instance, a manager in an organization will not be successful until he has subordinates beneath him who are well equipped with skills, talent and knowledge.
To manage an organization both large and small requires staffing them with competent personnel. The formal educational system does not adequately teach specific job skills for a position in a particular organization. Few employees have the requisite skills, knowledge, abilities and competencies (SKAC) needed to work. As a result, many require extensive training to acquire the necessary SKAC to be able to make substantive contribution towards the organization’s growth, (Barron and Hagerty 2001).
If employees are to experience flexibility and effectiveness on the job, they need to acquire and develop knowledge and skills, and if they are to believe that they are valued by the organization they work for, then they need to see visible signs of management’s commitment to the their training and career needs. Training and development are the processes of investing in people so that they are equipped to perform. These processes are part of an overall human resource management approach that hopefully will result in people being motivated to perform. (Barron and Hagerty 2001).
It goes without saying therefore that the training and development of employees is an issue that has to be faced by every organization. However, the amount, quality and quantity of training carried out vary enormously from organization to organization. According to Cole (2002:329), factors influencing the quantity and quality of training and development activities include; the degree of change in the external environment, the degree of internal change, the availability of suitable skills within the existing work-force and the extent to which management see training as a motivating factor in work.
Many organizations meet their needs for training in an ad hoc and haphazard way. Training in these organizations is more or less unplanned and unsystematic. Other organizations however set about identifying their training needs, then design and implement training activities in a rational manner, and finally assess results of training. It is worth noting that Saudi Arabia has a huge public sector, employing the highest number of human resources with varied skills. One such organization in the public sector is Jeddah Islamic Port.
1.1.1 Training and development in Saudi Arabia
The government of Saudi Arabia has shown concerns regarding the need to ensure its firms compete fairly in the global market. The government has implemented a strategy of the provision of the required human resources to the global economy through the delivery of adequate education and training. However, formal education has not developed adequately within the Kingdom to respond to the needs of employees with regard to competitive delivery in their areas of specialization (Madhi & Barrientos, 2003). These concerns have increased the level of attention that is being given to skills training within the kingdom. A number of commentators and researchers have pointed out that there is a widespread concern regarding the quality professional training that employees in the country receive.
Many organizations in the country have used vocational training to address the concern, though Baqadir et al. (2011) pointed out that the gaps in the skills of the employees had not diminished as expected. Studies have revealed that technical education within the kingdom has failed to offer graduates the required level of skills as well as work attitude. The perceived gaps that are often indicated by the employers are within three major centers: generic skills, specialized knowledge, and work ethics and (Baqadir et al., 2011). A study by Al-Turki (2011) found out that a number of organizations in Saudi Arabia are undertaking change management as well as extensive training and development programs to ensure that employee performance and the overall productivity of the forms are improved. The challenges that the organizations have faced in implementation of modern strategic initiatives of controlling costs and improving profit margins have made companies in both private and public sectors in the country to undertake aggressive training and development initiatives among their employees. Al-Ghamdi (2010) stated that majority of the organizations in the country are implementing performance evaluation programs to ensure the effectiveness of the training initiatives are measured and financial as well as career opportunities are incorporated.
1.1.2 Training and Development at Saudi Ports Authority
Saudi Arabia is a country of major importance in the globe due to rich oil deposits. The kingdom is a major exporter of oil in the world and thus the ports are often busy (Al-Ghamdi, 2010). Employee performance and productivity are issues of major concerns to the management of the ports. Security should be ensured to avoid any threats that may interfere with the global business and relationships that the kingdom enjoys. The Saudi Ports Authority has shown concerns on the need to improve the levels of employee performance in areas like operations management, logistics, human resource management, and accounting among others (Kingdom of Saudi Arabia, 2015a). The mission of the ports authority of the kingdom is to ensure any illegal businesses are not carried out across the borders that it controls and to ensure highly fast and smooth operations within the ports.
The low levels of productivity of the employees in the kingdom and the demand for a rise in productivity has made the Saudi Ports Authority to undertake massive training and development initiatives to ensure that the employee performance is raised. Saudi Ports Authority has proposed the use of summer training to elevate the performance levels of employees within various ports. There are also various training programs that are organized for different subject areas like project management, employee health and safety, and customer relations among others (Kingdom of Saudi Arabia, 2015b). These programs are meant to ensure that the employees’ skills in the given areas are improved and thus their general performance. The cultural practices in Saudi Arabia and challenges in the education systems have resulted to major problems of ensuring a competitive advantage by recruiting highly performing employees. However, the need to become exposed to the global market has made many organizations undertake training and development initiatives to ensure the employees performance increase.
1.2 Problem Statement
Apart from being the major exporter of oil in the world, the Kingdom of Saudi Arabia possesses the most diversified economies in the Middle East. As industrial exports from the kingdom are destined for different locations all over the world, massive efforts have been put in place to modernize the ports and ensure they have the ability of handling large cargo volumes. To ensure better productivity and management, Saudi Ports Authority privatized the ports in the country from 1997, and maintained a supervisory role (World Port Source, 2015). Private organizations are more conscious to productivity and profitability than public firms. Saudi Ports Authority formulated policies for management of the ports and supervised the operations of the private firms to ensure the policies were implemented and the ports’ activities boosted the economy if the kingdom (World Port Source, 2015).
Jeddah Islamic Port is the busiest commercial port in Saudi Arabia, and supports majority of the country’s foreign trade. Many companies undertake different operations at the three terminals of the port. Productivity of the port is thus ensured through collaborations of the companies. Examples of these companies are Gulf Stevedoring Contracting Company Limited (GSCC), Reefer Gantry Platforms, Saudi Maintenance Company (Siyanco), Saudi Trade and Export Development Company (TUSDEER), and AJWA Port Services among others (World Port Source, 2015).
To ensure that these companies coordinate and handle operations at the port smoothly, varieties of workshops have been set up for the customers and the operators of the port. The workshops include marine equipment workshop, cargo-handling workshops, and separate workshops for civil, electronic, and electrical engineering (World Port Source, 2015).
Despite the use of the workshops to ensure smoothness of operations at the port, major productivity problems began arising at Jeddah Sea Port since 2013. The low productivity of employees who handle cargo led to rise in costs of handling vessels and delays in the time taken to clear vessels
we should add comments that related to the lack of training and development at Jeddah sea port which is caused the cargo handle problem and the low performance and productivity of employees that work in cargo handling , in addition it should be from official person and new 2014/2015 .
Though the intervention of opening roads to increase accessibility to the port temporarily relieved the congestion problem, the performance of the employees and optimization of operations may be the only permanent solution. Statistics show that the number of cargo handled at the port keeps increasing from time to time, a major threat to the recurrence of the problem. The significance of Jeddah Islamic port to the international trade in Saudi Arabia is a major reason behind the consistent rise in the cargo that is handled at the port. Comparisons of the current figures of 2015 to the figures of 2014 indicate an estimated rise in the number of containers, vehicles, iron, wood, sugar, and unloaded cargo (Kingdom of Saudi Arabia, 2015c). This is an indication that operations should be streamlines and the performance of the employees who handle cargo should be improved to avoid adverse cases of congestion in the near future.
Studies have shown that a proper training and development program is able to raise employees’ performance and improve their career development levels)add more studies related to the impact of training and development in the enhancement of cargo handle at Jeddah sea port, it should be new 2014/2015 and from good journal articles) . Jeddah Islamic port has taken training initiatives seriously due to the desire to improve employee performance. Earlier this year, the management announced the launch of the first vocational training program for its employees (Kingdon of Saudi Arabia, 2015b). El Barky and Hussein (2015) pointed out that productivity at the port could be improved through generally improving logistics. Proper training is required for the employees to raise their performance. However, training can only result to improvement of performance when undertaken accurately. It is important to investigate how Jeddah Islamic Port is handling training of their staff, and the influence of the training and development initiatives on the performance of the employees. Analyzing the training programs and coming up with recommendations that the port’s management can use to ensure that the training initiatives actually lead to a rise in performance and productivity may solve the problem of poor handling of vessels and evade it despite increase in cargo volumes.
1.3 Research objectives and Research Questions
1.3.1 Research Objectives
The objectives of this study include:
i. To determine how the employees perceive the benefits of training and development
ii. To determine how the competency levels of employees is enhanced through training and development
iii. To examine the contribution of training and development to individual productivity and performance
iv. To determine the outcomes of training and development initiatives to the organizations
v. To determine the influence of training and development on the job knowledge of employees
vi. To determine the influence of training and development on the morale of the employees
vii. To determine the impacts of training and development on the techniques, skills, and abilities of employees.
viii. To determine the impacts of language and culture on the effectiveness of programs of training and development implemented by Jeddah Islamic Seaport.
1.3.2 Research Questions
i. How is the organization committed to employee training and development?
ii. How does the implementation of training and development program influence the organization and the employees?
iii. How does culture and language in Saudi Arabia influence the Implementation of Training and development in Jeddah Islamic Seaport?
iv. How do the employees at Jeddah Islamic Seaport perceive training and development programs?
v. In what ways do the training and development programs influence the job knowledge of the employees?
vi. In what ways do the training and development programs influence the techniques, skills, and abilities of employees?
1.4 Scope of the study
The study will be carried out among the employees of Jeddah Islamic Seaport to determine the impact of training and development programs implemented by the management on performance and productivity. A sample will be picked randomly from the employees in all the departments of the organization and questionnaires will be used to collect data from the sample. The data is to be analyzed to give a clear picture on how the training and development initiatives affect the performance and productivity of both the employees and the organization.
1.5 Significance of the study
The study is significant in confirmation of the argument posed by the expectancy theory. A number of studies have stated that when training and development programs are undertaken adequately, performance of the trainees is expected that will rise. Expectancy theory holds that people often exert work efforts with the aim of achieving a targeted task performance level, and realizing desirable work related outcomes. In this study the effort to be exerted is training, which is hypothesized to raise performance of employees, and achieve work-related outcomes of a general rise in the port’s productivity.
The study will also contribute to Human Resource Management practice. Managers will gain knowledge regarding the current influence of training and development and thus come up with accurate development strategies to ensure performance and productivity is improved.
Moreover, the study will majorly contribute to the organization from which data is collected, and other organizations in a similar setup. The organization will have a clear understanding on the perception of its employees on its training initiatives and makes adjustments to ensure the programs improve the levels of performance and productivity.
1.6 Definition of important Concept
Training:
According Cole (2002:330), in his book Personnel and Human Resource Management, training is a learning activity directed towards the acquisition of specific knowledge and skills for the purpose of an occupation or task. The focus of training is the job or task for example, the need to have efficiency and safety in the operation of particular machines or equipment, or the need for an effective sales force to mention but a few.
Development
Development is defined as “learning that is not job-related”. Although there may by some Indirect benefits, development is not directly related to productivity. Hence it will be prudent To exclude development as a means of achieving productivity improvement (PSA, 1997).
Education
Education is defined as “Learning related to the future job of the learner”. It is concerned With preparing people for new jobs which may arise from the introduction of new technology. It is important to recognize that immediate productivity cannot be expected when education is used as a HRD Intervention (PSA, 1997)
Human Resource Management:
According to Beer et al (1984), define Human Resource Management as the involvement of all management decisions and actions that affect the nature of the relationship between the organization and its employees-the human resources.
Tower Operator
A tower operator is a person who operates a mechanical cable and tower equipment that is used in lifting and moving materials, products, or machines in many directions (ONET, 2015) In a port, a crane tower operator is responsible for controlling the crane that is used in loading and offloading ships.
1.7 Organization of the study
There are five chapters in the study. The first chapter presents an introduction of the study. It gives background information on the topic of the study, the problem that the study seeks to address, the questions that the study seeks to answer, the objectives of the study, scope of the study, and the hypothesis.
In the second chapter a critical and theoretical review of literature regarding the topic research is done to help in identification of findings of past studies and their relationships to the current study.
Chapter three presents the methodology for the research. It outlines the way the sample for the study was determined, the tools used in the collection of data, the philosophy applied in the research, the determination of the reliability of the data and a description of how the data is analyzed.
Chapter gives a presentation of the analysis of data collected from the research samples. It will also lays out the researcher’s findings on variables that are investigated for the impact and role of training on employees in terms of performance and productivity.
Chapter five presents the conclusions drawn from the research findings and recommendations to enhance organizational effectiveness through training, and to ensure a stable and committed human resources.
1.8 Summary:
This chapter highlighted the considerable lack of research on studying the impact of human resource management practices (training and development ) on employee’s .this dearth exist despite the fact that the employees are the most proximal target of human resource management practices and the impact of training on employee outcomes should be thoroughly investigated. The exploratory study attempted to address this limitation by explicitly focusing on the impact of training and development on employee performance and productivity and which kind of method, model and style that will be suitable for them. In the proposed model, the construct of training and development was the independent factor, while the constructs of employee performance and productivity was the dependent factor or outcome factor. In the model, it was proposed that human resource practices (training and development) would be related to employee’s performance and productivity. The model was tested on a sample of the employees (tug master, pilot and tower operator) in Jeddah Islamic sea port .the justification for the selection of the study variable is explained in the chapter. The chapter also outlined the scope of the study and defined the important concepts in the study. The study sought to narrow the gap in the literature with regard to the influence of the training and development on employee’s productivity and performance.
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