Determinants of Employees Performance in Ready-made Garments (RMGs)

Sector in Chittagong, angladesh! " Path "nalysis

Balasundaram Nimalathasan
1
& Syed Mohammad Ather
2
1
Department of Commerce, University of affna, Sri !an"a#
2
Department of Mana$ement Studies, University of Chitta$on$, Ban$ladesh#
"#stract
%he main o&'ective of the study (as to determine the employee)s performance in *M+s# A
non,pro&a&ilistic samplin$ method, namely convenience samplin$, (as used in dra(in$
sample for this study# *espondents (ere from various $arment industries that (ere located in
the Chitta$on$, Ban$ladesh# Both primary and secondary data (ere used for the purpose of
the study# -pinions of the sample respondents as to the various aspects of employees)
performance (ere recorded on the !i"ert,type five point ratin$ scales# .n the present study,
(e, therefore, used Cron&ach)s alpha scale as a measure of relia&ility (hich value (as
estimated to &e /01#234# 5ere, (e analysed the data &y employin$ simple correlation and
path analysis# .n the analysis, it is found that each of the factors 6individual related factors
7.*89, 'o& related factors 7*89: and or$ani;ational related factors 7-*89< has a stron$
positive correlation (ith employees) performance 7=>9# >ath analysis disclosed that the direct
effects of .*8 and -*8 are hi$hly si$nificantly influences on employees? performance 7=>9
and in most cases indirect effects of different factors on => are also apprecia&le# .n addition,
the present study su$$ests some policy implications for formulatin$ effective strate$y for
human resource development in Ban$ladesh and similar other countries#
$ey%ords! =mployees? >erformance 7=>9: *eady,made +arments 7*M+s9: >ath Analysis
&' (heoretical Paradigm and )iterat*re Re+ie%
=mployees are the most valua&le asset in any or$ani;ation# A successful and hi$hly
productive &usiness can &e achieved &y en$a$in$ them in improvin$ their performance# All
employees are not e@ual in their (or"in$ and they have different modes of (or"in$ li"e some
have hi$hest capa&ility re$ardless of the incentive &ut other may have occasional 'ump,start#
.f they are handled effectively, the result can &e $reater productivity and increased employee
morale# =mployees in a firm are re@uired to $enerate a total commitment to desired standards
of performance to achieve a competitive advanta$e and improved performance for sustainin$
that competitive advanta$e at least for a prolon$ed period of time, if not forever# .n vie( of
ud$e and 8erris 71AAB9, perhaps there is no more important human resources system in
or$ani;ations other than performance evaluation and ratin$s of employees) performance
represent critical decisions that are "ey influences on a variety of su&se@uent human
resources actions and outcomes#
1
>erformance means &oth &ehaviour and result# Behaviour emanates from the performer and
transforms performance from a&straction to action# Not 'ust the instrument for result,
&ehaviours is also outcomes in their ri$hts the product of mental and physical effort applied
to tas" and can &e 'ud$ed apart from the result 7Armstron$, 21119# Bates and 5olton 71AA39
pointed out that performance is a multidimensional construct, the measurement of (hich
varies dependin$ on a variety of factors li"e salary, environment, peer $roup relations and so
on 7as cited in Armstron$, 21119# A more comprehensive vie( of performance is achieved if
it is defined as em&racin$ &oth &ehaviour and outcomes 7Armstron$, 2111). =mployees)
performance 7=>9 is an important factor that contri&utes to improve the outcomes, &ehaviour
and traits of the employees# .t helps to improve the productivity of the or$ani;ation#
Nic"ols 7211B9 and 8ort and Coltero 7211D9 identified similar factor that are closely related
and affect provider performance in the (or"place# %hey included a clear $oals and 'o&
eEpectations, suita&le repertoire, immediate feed&ac", s"ills to perform, "no(led$e of the
or$ani;ational structure, functional feed&ac" system, sound metal models, sufficient
motivation throu$h self,satisfaction and incentives, supportive or conducive#
,' -*stifications of the St*dy
%here are a num&er of factors (hich may &e affectin$ the employees) performance# =ach
employee may have different effect from different thin$s at (or"place# %heir attitude and
&ehaviour can play a vital role in their performance# =mployees don?t perform in a vacuum#
%here are a variety of factors, .N8 7(hich is the com&ination of different attri&utes i#e#, value,
&eliefs, critical thin"in$, and anticipation of success and (or" attitude9, *8 7i#e#, needs, self,
concept, personal impact s"ills competence, feed&ac", incentives and re(ards9 and -*8 7i#e#,
or$ani;ational culture, norms and standards used at (or", communication, supervisor and
collea$ue support9 that affects their performance# .dentifyin$ these factors can help improve
recruitment, retention and or$ani;ational results# %his research $ap induces the researchers to
underta"e the present study#
2
.' /#0ecti+es
%he follo(in$ o&'ectives (ere ta"en for the studyF
%o identify and reco$ni;e the factors (hich determine $arments employees)
performance:
%o state the relationship &et(een factors and employees) performance:
%o reco$ni;e the direct and indirect effects of independent factors on dependent factor: and
%o offer some policy implications to enhance employees) performance#
1' Research Design and Methodology
%hese descri&e research desi$n, research approach, unit of analysis, samplin$ desi$n, data
sources and @uestionnaire development, relia&ility and validity, analytical method and
operational definitions of "ey concept# #
1'& Research Design
%his study is &asically an eEploratory study# =Eploratory studies are a valua&le means of
findin$ out G(hat is happenin$: to see" ne( insi$hts: to as" @uestions and to assess
phenomena in a ne( li$ht) 7*o&son, 21129# .t can &e lin"ed to the activities of the traveller or
eEplorer 7Adams and Schvaneveldt, 1AA19# .ts $reat advanta$e is that it is fleEi&le and
adapta&le to chan$e 7Naipul, 1A2A9#
1', Research "pproach
As this study is a &usiness and mana$ement research, it has a characteristic of positivist and
interpretivist and also involves in deductive approach 75ussey & 5ussey, 1AA4: *o&son,
1AAB9 as (ell as inductive approach 7=aster&y,Smith, %hrope & !o(e 721129# Com&inin$
these t(o research approaches in same piece of research is perfectly possi&le and
advanta$eous for a research#
1'. 2nit of "nalysis
Unit of analysis of the study (as $arments sector attached to Ban$ladesh *eady,made
Manufacturin$ +arments Association 7B*M+A9 in Chitta$on$, Ban$ladesh#
B
1'1 Sampling Design
A non,pro&a&ilistic samplin$ method, namely convenience samplin$, (as used in dra(in$
samples for this study# 5undred 7i#e#, five respondents (ere selected from t(enty *M+s9
respondents (ere from various $arment industries that (ere located in the Chitta$on$,
Ban$ladesh#
1'3 Data So*rces and 4*estionnaire De+elopment
%he study (as complied (ith the help of primary and secondary data# >rimary data (ere
collected direct personal intervie( (ith help of the @uestionnaire# Moreover, the des" study
covered various pu&lished and unpu&lished materials on the su&'ect# %he @uestionnaire (as
administrated to employees of $arment industries in Chitta$on$, Ban$ladesh# A five item
scale from never 719 to al(ays 739 (as adopted to measure the employees) performance#
1'5 Relia#ility and 6alidity
Before applyin$ statistical tools, testin$ of the relia&ility of the scale is very much important
as its sho(s the eEtent to (hich a scale produces consistent result if measurements (ere
made repeatedly# %his is done &y determinin$ the association in &et(een scores o&tained
from different administrations of the scale# .f the association is hi$h, the scale yields
consistent result, thus is relia&le# Cron&ach)s alpha is most (idely used method# .t may &e
mentioned that its value varies from 1 to 1 &ut satisfactory value is re@uired to &e more than
1#H for the scale to &e relia&le 7Malhotra, 2111: Cron&ach, 1A319# .n the present study, (e,
therefore, used Cron&ach)s alpha scale as a measure of relia&ility# .ts value (as estimated to
&e /01#234, .f (e compare our relia&ility value (ith the standard value alpha of 1#H
advocated &y Cron&ach 71A319, a more accurate recommendation Nunnally and Bernstein
71AAD9 or (ith the standard value of 1#H as recommendated &y Ba$o;;i and Ii)s 71A229 (e
find that the scales used &y us are hi$hly relia&le for data analysis#
Calidation procedures involved initial consultation of the @uestionnaire# %he eEperts also
'ud$ed the face and content validity of the @uestionnaires as ade@uate# 5ence, researchers
satisfied content and construct validity#
D
1'7 "nalytical Method
.n the present study, (e analysed our data &y employin$ simple correlation and path analysis#
8or the study, entire analysis is done &y personal computer# A (ell "no(n statistical pac"a$e
i#e#, GStatistical Package for Social Sciences 7S>SS9 14#1 Cersion (as used in order to
analy;e the data#
1'8 /perational Definitions of $ey Concepts
%he follo(in$ are the operational definitions of the main concepts and eEplanation of terms
in this study#
Employees
>erson (ho are hired to provide services to a $arments on a re$ular &asis in eEchan$e for
compensation
Employees Performance
=mployees) performance 7=>9 is an important factor that contri&utes to improve the
outcomes, &ehaviour and traits of the employees#
Ready-made Garments (RMGs)
*M+s are mass,produced finished teEtile products of the clothin$ industry#
Correlations
Co,efficient of correlations (as calculated in this study to measure the relationship &et(een
dependent varia&les 7i#e#, .*8, -*8, and *89 and independent varia&les 7i#e#, =>9
Path "nalysis
>ath analysis (as en$a$ed in this study to identify the direct and indirect effects of
independent factors 7.*8, -*8 and *89 on dependent factor 7=>9#
3
3' Data analysis and 9indings
Data analysis and findin$s (ere discussed under the follo(in$ su&,heads#
3'& Correlation "nalysis
Correlation analysis (as performed to find out the relationship alon$ (ith test of si$nificance
&et(een the follo(in$ factorsF
.*8F .ndividual *elated 8actors
*8F o& *elated 8actors
-*8F -r$ani;ational *elated 8actors
=>F =mployees) >erformance
.n this re$ard ta&le ,1 provides the results#
(a#le-&! Correlation MatriE
:R9 -R9 /R9 EP
:R9 1
-R9 1#31BJJ
71#1119
1
/R9 1#H1BJJ
71#1119
1#34AJJ
71#1119
1
EP 1#H1DJJ
71#1119
1#3HDJJ
71#1119
1#434JJ
71#1119
1
Mean B#BD32 B#11D2 B#32BB B#H1H4
Standard
De+iation
1#3D322 1#3421A 1#342A1 1#3DB32
So*rce! 8ield Study JJ Correlation coefficient is si$nificant at the 1#11 levels
%a&le,1 sho(s that the factors .*8, *8 and -*8 are independently positively correlated
(ith => and also hi$hly si$nificant at 1K levels# 5ere it is o&vious that the maEimum
correlation 7r 01#4349 is eEisted &et(een -*8 and =>, follo(ed &y the association 7r 01#H1D9
&et(een .*8 and =># %hat is, it should &e needed to $ive the hi$hest emphasis on -*8 for
super& performance of employees# .*8 are also crucial for (onderful performance of *M+s)
employees# Althou$h there has no so influential lin" 7r 01#3HD9 &et(een *8 and => li"e as
.*8 and -*8, it also essential to serve the purpose of employees) performance# =Ecept =>,
remainin$ three factors are pair,(ise positively correlated (ith one to another and also
statistically si$nificant at >,value 1#111# Amon$ the three factors, the relationship 7r 01#H1B9
H
&et(een .*8 and *8 is the hi$hest, follo(ed &y the lin" 7r 01#34A9 &et(een -*8 and *8#
%he value of r01#31B implies that there has a considera&le association &et(een .*8 and *8#
3', Path "nalysis
>ath analysis (as en$a$ed in this study to identify the direct and indirect effects of
independent factors 7.*8, *8 and -*89 on dependent factor 7=>9# .n model 78i$ure,19 siE
hypothesi;ed path coefficients are considered and amon$ the coefficients one is statistically
insi$nificant, one is little &it si$nificant at 11K levels, and remainin$ coefficients are stron$ly
si$nificant at 1K levels#

So*rceF 8ield Study: Lhere JJ 0> 1#11: J 0> 1#11
9ig-&F Model of .ndependent 8actors and =mployees) performance
%here are three arro(s in path model that came from some un"no(n factors: the values alon$
(ith the arro(s indicate error effects on respective factor, (hich didn)t consider in the study#
%he overall error effect 1#B42 discloses that only B2K effect of factors is i$nored due to
unavoida&le circumstances# Moreover 71,1#B429 01#H22 0*
2
reveals that the considered
factors are superior selection for the analysis#
4
1#B42
1# 4D4
-*8
-*8
=>
*8
*8
1#3DAJJ
.*8
.*8
1#31BJJ
1#BHBJJ
1#21HJ
1#1DB
1#32H
1#DB1JJ
(a#le-,! Analysis of =ffects of the 8actors Used in the >ath Model
Dependent
9actor
:ndependent
9actors
Direct
Effect
:ndirect Effects thro*gh (otal
Effect
*8 -*8 *8 M -*8
EP
.*8 1#21H 1#142 1#2B4 1#111 1#H13
*8 1#1DB , 1#1AA , 1#BD2
-*8 1#3DA , , , 1#3DA
SourceF 8ield Study
.n the ta&le ,2, it is seen that the total effects are the addin$ of direct and indirect effects# -ut
of a&out H2K total effect 71#H139 of .*8 on =>, almost 21K is direct effect 71#21H9,
approEimately 4K and 2DK are indirect effects throu$h *8 71#1429 and -*8 71#2B49
respectively, remainin$ 11K &e indirect effect via the factors *8 as (ell as -*8 71#1119#
8rom the a&ove discussion .*8 has the hi$hest relation (ith -*8 in case of =>, follo(ed &y
.*8 due to direct effect on =># %he overall influence of *8 over => is 1#BD2, in (hich direct
effect 71#1DB9 is not as dominant as indirect effect 71#1AA9 throu$h -*8# 5ere, it is
undou&tedly true that -*8 is a $ood @uality secondary factor to manipulate employees)
performance# %he direct effect 71#3DA9 of -*8 over => is the uppermost (hich itself is the
total effect# 5ence, it is clear that -*8 is the "ey factor in case of the inspection of
employees) performance in *M+s sector#
5' Concl*sion
8rom the correlation matriE, the hi$hest positive value of correlation &et(een -*8 and =>
clarify that the authorities of $arments sector is re@uired to $ive main focus on -*8 for
$ettin$ fa&ulous employees) performance# %he maEimum avera$e point 7B#32BB9 of -*8 also
discloses the identical conclusion# A stron$ positive relation &et(een .*8 and => spell out
$arment industries cannot i$nore employees) individual factors to achieve satisfactory
performance# %he minimum standard deviation 71#3D3229 represents that attri&utes (ithin
individual related factors has a close connection# So if any one of the attri&utes in .*8 is
ne$lected, employees) performance (ill &e severely hampered# Considerin$ the coefficients
of correlation of 8> (ith other factors, *8 is the final factor accordin$ to the priority &asis
&ut employees cannot deny it due to statistically si$nificant association (ith =># A po(erful
lin" &et(een -*8 and .*8 says that an employee do not apart himself from or$ani;ation and
vice,versa# Almost ali"e statement can dra( in case of relationship &et(een the pairs -*8
and *8, *8 and .*8#
2
!i"e correlation matriE, path analysis also declares that the maEimum individual 7direct9
effect is on => from -*8# %herefore, it is o&vious that (ithout -*8 employees) performance
(ill &e lo(er than the &elo( avera$e# .*8 has the second maEimum direct effect over => and
it also indirectly influences to => throu$h other factors -*8 and *8 separately and
simultaneously# %o $ain more afford of employees, o(ners ou$ht to &e fleEi&le to .*8 factor
of (or"ers as it has not only direct effect &ut also some su&stantial indirect effects on =>#
=ven thou$h the effect of *8 on => is not statistically si$nificant, it considera&ly operates
=> throu$h the factor -*8# 5ence employees) performance (ill &e &etter (hen 'o& related
factors are considered alon$ (ith or$ani;ation related factors# %o achieve the ceilin$
economic $ain in *M+s sector, @uality product must &e ensured# -nly employees can
provide @uality product throu$h their eEcellent performance and for that a $ood com&ination
of .*8, *8 and -*8 is re@uired, (hich is released &y the path ta&le#
7' Policy :mplications
Althou$h the present study (as confined to identify the factors of =>, it may &e appropriate
to state &riefly the policy implications for the study# .n this conteEt, the follo(in$ policy
actions may &e considered (orth(hile#
1# %he *M+s sector should create a supportive or$ani;ational climate# Unfortunately the
or$ani;ations today continue to &e hi$hly formali;ed (ith accompanyin$ infleEi&le,
impersonal climate# %herefore, the structure should &e decentrali;ed (ith participative
decision,ma"in$ and up(ard communication flo(s#
2# =mployees should &e allo(ed to $et advice from their supervisor throu$h this: they (ill
correctly perform their responsi&ilities and duties#
B# *M+s sector should have to eEpand the health maintenance pro$rams: supervisor trainin$
pro$rams and stress reduction (or"shops#
D# *M+s sector should handle the pro&lems and opportunities, (hich are common to all
employees#
3# Ne( technolo$ies should &e used to reduce the (or" overload#
H# Motivation for employees should &e $ranted (ithout &iased to perform their tas"#
8' Contri#*tion of the St*dy
A
.t is hoped that the study (ill contri&ute $reatly to the literature of => in Ban$ladesh and
other similar countries# Besides, su$$estive recommendations (ill have much effect on
improvin$ =># %he suita&le policy formulation &ased on the findin$s of the study, to the &est
interest of the *M+s mana$ement as (ell as of the country (ill $o a lon$ (ay to open a ne(
era in the field of the country)s human resource development#
;' Direction for 9*t*re Researches
%he present research study is confined to hundred employees of *M+s in Chitta$on$,
Ban$ladesh# .t (ould &e (orth(hile to conduct a comprehensive study, ta"in$ lar$e sample
from all the districts of Ban$ladesh and there&y help in $enerali;in$ for a lar$e population# .n
order to validate the findin$s of this study, case study is another interestin$ approach that can
&e done &y future research# Additionally, the research model of this study can &e retested in
&usiness or$ani;ations, so that, it can &e $enerali;ed to other economic sector#
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