International Journal of Business and Behavioral Sciences

Vol. 4, No.6; June 2014

Examining the Mediating Role of Employee Career Development in the

Relationship between Learning Organization and Organizational Performance
Sahrish Saba Zafar1, Mohsin Bashir2,*Muhammad Abrar 3, Faheem Ghazanfar 4
1
MS Scholar, Department of Business Administration, Govt. College University, Faisalabad, Pakistan,
2
Assistant Professor Department of Business Administration, Govt. College University, Faisalabad
Pakistan, 3Assistant Professor Department of Business Administration, National Textile University,
Faisalabad, Pakistan, 4Assistant Professor, Department of Public Administration, University of
Management Sciences and Information Technology, Kotli, Azad Kashmir.
*mohsinhust@gmail.com
ABSTRACT
The purpose of the study is to study the mediating role of employee career development in the
relationship between learning organization and organizational performance. For this study, 350
questionnaires had been circulated to the employees who were judiciously selected on random bases
from listed corporations of food and personal care products in Lahore Stock Exchange (LSE 25) of
Pakistan. The model in this exploration, anticipated a three-variable classification, following two
contributory paths that provide for reliant variable, first path encompasses of direct influence of
dimensions of learning organization on organizational performance, and second, the impact of mediator
on causal relationship of both variables. Based on results drawn from regression analysis, reconnoitered
that dimensions of learning organization had worth mentioning impact on organizational performance,
and employee career development had frolicked weighty role between both variables. Cream of the crop
is that the organizations should concentrate on the connotation of employee career development into
orga izatio s usi ess de elop e t pla . It guides the orga izatio s to espouse the ha ge that a
help to attain their defined goals and improve the enactment through employee involvement and
enthusiasm toward the responsibilities. A learning organization through stride and volume of up-to-date
i issitudes a ha e a o passio ate role i path ay of the i di iduals areer de elop e t that
contributes in the organizational performance.
Keywords: Dimensions of Learning Organization, Organizational Performance, Employee Career
Development, Competitive Advantage
Introduction:
In the economy of the twenty-first epoch, it is better understood that human resource is a foremost
fa et of e o o i a d so ial ell ei g. A o ga izatio s a o plish e t is determined as much by the
dexterity and impetus of its associates as by almost any other factor. While this has always been true,
the stride and volume of up-to-the-minute change is focusing considerations on ways that the human
resources development actions can be rummage-sale to safeguard organizational adherents what it
takes to efficaciously come across their challenges.
Organizational development commencing HR perspective, as the OD progression, determined on
accomplishing development through its Humanoid Capital. I this study, lea i g o ga izatio s
perspective has been allocated to study organizational performance by causative in the career
development of personnel. The conception of learning organization, instigated by Senge (1991), is
relatively idely held i the disse tatio s o eded i the field of a age e t. e ge s odulus as
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Vol. 4, No.6; June 2014

specified in his book, The Fifth Dis ipli e has been presented as criterion in this disquisition to
categorize organizations that possibly will be liable for the perspective of the learning organization but
the dimensions of learning organization (DLO) described by Watkins and Mersick, (1993) were base for
subsequent investigation dissertation.
The model of this study focuses on longstanding strategy of organizational performance (OP) that could
e a hie ed o e a d do e ith the de elop e t of the i di iduals a ee s. I this e e e e fo e ost
stratagems of OP have been well thought-out to be fundamental chunk of the progressions going on in
organizations that prerogative to make the grade as learning organizations. Based on this datum, this
study assumes that committed to such tactics causes the development of their workforce and they can
in due course contribute in the development of organization.
This investigation analyzed the compassionate role of Learning Organization in the direction of
i di iduals a ee s hile itself o i g to a ds the fi al stage to o ga izatio al pe fo a e. Fo this
purpose, continuous learning, inquiry and dialogue, team learning, embedded system, empowerment,
system connection and strategic leadership have been a selection in the context of learning organization
as independent variables. The relationship of these variables with the dependent variable i.e.
organizational performance is well thought-out to be mediated by employee career development.
Figure 1: Portrayal Map of Hypothetical Model

IV: Learning Organization

Continuous Learning
Inquiry and Dialogue

MV:
Employee
Career
Development

MV: Mediating Variable

Team Learning
DV:
Organizational
Performance

Embedded System
Empowerment

System Connection

Strategic Leadership
Key for Variables:
IV: Independent Variable; DV: Dependent Variable

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Literature Review:
According to Mabey and Thomson (2012), Learning Organization (LO) is notorious to be solitary which
unceasingly learns and attune itself to altering environs. The concept of LO is a newsworthy one
e e theless it appli a ility to today s happe sta es o f o ted y o ga izatio s has specified
connotation in business world. Due to involvedness of environs, organizations have apprehended that
attainment and sustaining competitive edge is not probable without resorting to the LO strategies.
Argote (2013) stated that organizational front-runners and theoreticians progressively stance erudition
as a crucial component in emerging and upholding competitive advantage. Even though learning
organization has been considered for epochs, a new-fangled highlighting on erudition has ascended due
to prompt fluctuations in business macroclimate, as well as indeterminate flea market state of affairs,
snowballing involvedness, altering demographics, and world-wide rivalry, this is also supported by other
studies (Akgn et al 2013;Argyris & Schn, 1999; Chan, 2003; Chiva & Alegre, 2009; Lopez et al., 2004;
Matlay, 2000; rtenblad, 2001; Marsick &Watkins, 2003; Pantouvakis, & Bouranta, N. 2013).
Distinguishing Between Organizational Learning and Learning Organizations:
According to rtenblad (2001), the lingos organizational learning and learning organization have been
rummage-sale interchangeably in bygone. As an end result, slip-up has appeared the convention of
these mumbo jumbo (Easterby-Smith et al., 1999; rtenblad, 2002). Nevertheless, challenges have been
prepared to elucidate and make a distinction between dualistic notions (Davis & Daley, 2008; Yang et al.,
2004). Three normative peculiarities amongst organizational learning & learning organization have been
notorious in the literature (Ortenblad, 2001). Primarily, organizational learning is beheld as a
progression or set of doings, and yet learning organization is realized as a form of business (Tsang,
1997). Succeeding, several essayists hold the opinion that erudition takes place logically in organizations,
despite the fact it necessitates determination to cultivate a learning organization (Dodgson, 1993).
Thirdly, belles-lettres on organizational learning ascended from hypothetical investigation, while the
belles-lettres on the learning organization developed predominantly from practice (Easterby-Smith,
1997). In organizational learning, knowledge is professed as to be inherent in individuals, while it is
observed as to be vested in personages and in organizational reminiscence in learning organizations.
Dimensions of Learning Organization (DLO):
Continuous Learning (CL): A member of personnel erudition and progression alignment is anticipated,
that comprises of reasoning, affecting, and interactive paradigms that together designate a propensity
toward engrossment in continuous learning. This positioning is postulated to be located as a
motivational stage that can be contingent on indentation to which erudition and progression are
pertinent to self. Chances for enduring edification and evolvement are on condition that erudition is
premeditated and hooked on to work, consequently personages can acquire on job (Maurer, 2002; lin,
2010).
According to Weinberg & McDermott (2002), in the meantime uninterruptedly fluctuating surroundings,
personages have to be lifelong learners. Innumerable categories of ability enlargement stratagems are
apply through learning organizations, which consist of long term career development plans, coaching,
mentoring, job enrichment, formal training and job rotation etc. Ability improvement in a learning
organization is an everlasting impact of totally its tactics and procedures, for example it is obviously
unstated that environmental alterations reason variations in ability necessities. Ability enrichment
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increases production of organizations and gets self-fulfillment such as gratifying comportment. Thus, it is
proposed that:
H1: The continuous learning has a positive impact on organizational performance.
Inquiry and Dialogue (ID): Inquiry a d dialogue a e p eli i a y to o e s lea i g p o edu e as they a e
captivated in determining responses to personally related queries. Action investigation is a technique of
learning that encompasses subject furthermore object, self moreover system or edifice scrutinized. As a
technique, it upsurges percentage of learning and efficiency (Gergen at al., 2004; Linder, 2001). Action
investigation stimulates personages to be constantly inquiring of their determinations, stratagems, and
activities whereas regulating these on bases of response about their effect in world. At personal phase,
action investigation stresses great levels of inquisitiveness, consciousness, and inclination to research
and study from skill and response. When clusters of personages involve collected action investigation
(collaborative inquiry), quick and unfathomable learning can happen. Continuing rehearsal supports and
emphasizes findings and acclimatizes and strengthens newfangled performances. Continuous, selfguided, collective action investigations are assurance of a learning organization (LO). Therefore, dialogue
interchange tedious with more exposed, alert, and cognizant behavior. It does through enduring
p a ti e, u de sta di g espo se, o eo e e ip o ated suppo t fo ea i g ague ess a d otk o i g that o mitment in deep-seated ingenuousness unavoidably involves (Black & Hunter, 2007,
2009;). Thus, it is proposed that:
H2: The inquiry and dialogue influence positively toward organizational performance.
Team Learning (TL): In a learning organization personages are assumed self-determined but their
struggles to accomplish are perceived as synchronized portion of collaboration. The responsibilities are
generally consigned to personages in form of teams where their performance is connected with team
performance and because team-learning is endorsed in a learning organization (Argyris & Schn, 1999;
Marsick & Watkins, 2003). The idea behindhand team building is that competences of team associates
e ha es, p odu i g sy e geti tou h a d isi g pe fo a e ultifa ious i o t ast ith pe so age s
performance, makes no odds how very skilful he may be. To endorse this spirit, personages are assessed
and remunerated in teams, thus to keep them interested for team work. Work is planned to usage of
teams to access dissimilar styles of thinking; association is appreciated by culture and remunerating;
teams are likely to acquire by working organized. Thus, it is proposed that:
H3: The team learning has positive impact on organizational performance.
Embedded System (ES): In present varying milieu it is compulsory for business to modernize their
systems and technology to manage with environmental reservations. The man power must be efficient
to recognize how technology should be used. The edifice should have essential systems to produced
share, sustained, and combined learning with work; staffs have right to use high and low-slung
technology systems.
H4: The embedded system has a positive effect on organizational performance.
Empowerment (EMP): Employee empowerment is a term used to define a staff mind set of
accountability, culpability, competence, and autonomy. In terms of business, empowerment is
contradictory to micromanagement. Employee empowerment is a stratagem and philosophy that
qualifies staff to make deductions for their jobs (Friedmann, 1992). It assistances staff own their work
and take accountability for their upshots and to assist clienteles on level of organization where clienteles
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interface occurs. Empowerment is procedure of qualifying or permitting an individual to consider,

performs, control work, decision making and take action in autonomous ways. It is segment of feeling
self-empowered to take control of one's own purpose (Collins, 2000). Empowerment principle is a
development stratagem. In learning organization, a leader give responsibilities clearly and briefly, it
guarantees that there are no grey areas when it arises to assigning particular obligations to particular
employees. That way, employees will identify accurately what is predictable for them and there will be
no room for transitory buck. Moreover, employees contemplate that leader is trusting them to complete
accountability for a charge, it progresses their self-confidence and improvements in their work
(Fetterman & Wandersman, 2005).
H5: The empowerment positively influence toward organizational performance.
System Connection (SC): The knowledge economy functions on complications of connections. All
individuals, societies, systems, and other business possessions are immensely interrelated in progressing
economic ecosystem. In linked economy, every network performer (individual, team, or organization) is
entrenched in a superior economic network that have emotional impact all contributors and, in return,
is prejudiced by that contributor.
H6: The system connection has a positive influence on organizational performance.
Strategic Leadership (SL): A learning organization has need of a different type of leadership in contrast
with conventional leadership in a non-learning organization. Chaisiri (1998) describes this part of a
leader in producing an environment of learning for example I o de to sti ulate o kfo es to
consecrate their hands, heads and hearts for edifice, an environment of learning organization
requirements to be industrialized. Leadership usages learning tactically for business consequences;
leadership archetypal, champion, and reassure learning (Bass, 2000; Vera & Crossan, 2004).
H7: The strategic leadership has a positive relationship with organizational performance.
Employee Career Development (ECD): According to (Jones, 2007) career is definite as design of work
li ked apa ilities that spa s ou se of i di idual life . Such as recognized by (Greenhaus et al., 2009)
career has two foremost features, first one is objective events and second one is a subjective feelings
connected to those events. Objective events consist of work connected positions, responsibilities,
activities and results. While subjective feelings are how individual take to mean those events in light of
his particular work correlated values.
This conception career management would mean to operate all objective events such as to remain in
contour with those unambiguous work correlated values in a manner suitable to employer i.e. if
individual values have superiority in work then greatest part of his work interrelated efforts would
congregate into aptitude for enhancement and proficiency. In this, any objective event that would
assistance him realize this value would mean career development to him. (Simonsen, 1997) connotes
fact that if staff are predictable to perform such as owner of procedure whereas applying enlargement
actions in organization then a great level of commitment must be inculcated amongst employees. In
order to produce commitment in true spirit would subsidize to organizational success their great level
stimulus must occur between employees. Such stimulus could be inspired between employees by
serving them to line up their own career goalmouths with direction and requirements of organization.
H8: The employees career development process mediate the relationship between learning
organization and organizational performance
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Organization Performance (OP): It is a deliberately planned effort to increase an organization's

relevance and viability, (Schein, 1990; Shrivastava, 2007) that referred to OP as, future readiness to
meet objectives, a systemic learning and development strategy intended to change the basics of beliefs,
attitudes and relevance of values, and structure of the current organization to better absorb disruptive
technologies, shrinking or exploding market opportunities and ensuing challenges and chaos. OP is the
framework for a change process designed to lead to desirable positive consequences by considering
every unit of organization to exist, sustain in dynamic environment. The learning organization can
effectively contribute in the organizational performance through a transformational change model that
can provide a competitive edge over the rivals.
The current study reviews the collection of previous studies that helped to determine valuable direction
in further research. The primary objectives of this exposition are to analyze the relationship between
learning organization and organizational performance and role of employee career development as a
mediator. The following research questions frame the intent of the study:
Research Inquiry 1 (RI1): What is the relationship between a learning organization and
organizational performance?
Research Inquiry 2 (RI2): How much the dimensions of learning organization influence organizational
performance?
Research Inquiry 3 (RI3): How employee career development play a stimulating role between
learning organization and organizational performance?
RESEARCH DESIGN AND METHODOLOGY:
Target Population and Sample: The target population of this study encompassed permanent and longstanding permanent personnel; employed in the food and personal care products manufacturing sector
of Pakistan. The motive why such personnel were sele ted as that thei o e tio pe iod with the
o ga izatio . This o otatio pe iod was mandatory to remain elongated enough to estimate the
i flue e of lea i g o ga izatio s i ol e e t i the di e tio of o ga izatio al pe fo a e a d
testing mediating part of employee career development. A sampling frame comprising of the
corporations listed in Lahore Stock Exchange (LSE 25) commencing food and personal care products
manufacturing sector of Pakistan. Amongst 18 companies, the final sample size computed to be the
enterprises that are functioning in Lahore constituency. The postal addresses of these o po atio s
were moreover attained from their website. For primary data assemblage, a total of 350 specialists of 10
corporations from food and personal care products industry, sele ted y follo i g si ple a do
sa pli g te h i ue, were communicated. The defendants contained inside demonstration from
employee level (excluding all intermediate and high-ranking executives).
Instrument Development: The primary data had been congregated through structured questionnaires.
All multi-item measures used in present study has been amended from authenticated and published
instruments. To ration the proportions of learning organization (as continuous learning measured by 7
items, whereas inquiry and dialogue, team learning, embedded system, empowerment, system
connection and strategic leadership had 6 items respectively) and organizational performance (12
items), the questionnaire was centered on instrument formerly intended and used by (Watkins and
Mersick; Yang et al., 2004). Although, the enquiries on the subject of employee career development (9
items) were founded by the questionnaire practiced by ( Amin et al. 2014Qureshi et al., 2006;
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Shamsudin et al . 2012;) and (Singh, 2004). For quantifying responses, each element requisite a
response on a 5-point Likert-type scale oscillating from 1 (strongly disagree) to 5 (strongly agree). Each
possibility has been consigned a measure; 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and
5 = strongly agree. Returned questionnaires were coded and data entered into IBM SPSS (Version 20.0).
Reliability of Scale: C o a h s alpha as al ulated to dete i e the i te al elia ility of the tool.
According to Creswell & Miller (2000) Klontz et al.(2011 and faizo et al 2013), whereas using Likert-type
measures, it has been well-thought-out to esti ate a d use C o a h s alpha oeffi ie t fo i te al
consistency reliability on behalf of any measures or subscales. C o a h s alpha elia ility oeffi ie t
generally ranges amongst 0 and 1. Based o Geo ge a d Malle y P i iple
, the ea e C o a h s
alpha coefficient is to 1.0, superior the internal consistency of objects in scale. C o a h s alpha
reliability coefficients of one dependent, one mediating and seven independent variables were
o tai ed, they all e e a o e = . . As the oeffi ie ts get lose to = . the ette is elia ilities
a d oeffi ie ts, a d less tha = .
a e o side ed u satisfa to y. The internal consistency of the
instrument is represented in Table 2.
Data Analysis: The primary approach to analyze data for the quantitative responses of the questionnaire
was through descriptive statistics and inferential statistics. The IBM SPSS 20.0 package was used to
perform required calculations. Inferential statistical technique of multiple regression analysis was used.
Regression classifies how much each independent variable has an influence on dependent variable.
RESULTS AND DISCUSSIONS:
Demographic Idiosyncrasies:
Frequencies of occurrence of certain variables are determined, from which the percentage and
cumulative percentage are calculated. The idiosyncrasies of respondents are shown in Table 1.
Table 1: The Idiosyncrasies of Respondents (N = 350)
Measures

Items

Gender

Male
Female
< 30 years
30 39 years
40 49 years
50 and above
Maste s Deg ee
Two Year College Degree
Senior High School
301 600
601 900
901 1200
Above 1200

297
53
99
136
102
13
194
134
22
35
35
105
175

84.9
15.1
28.3
38.9
29.1
3.7
55.4
38.3
6.3
10.0
10.0
30.0
50.0

84.9
100
28.3
67.1
96.3
100
55.4
93.7
100
10.0
20.0
50.0
100

Manufacturing
Others

349
1

99.0
100.0

99.0
100

Age

Highest Level of
Education
No. of Employees in
Org.

Type of Business

Frequency

61

Percentage
(%)

Cumulative
Percentage

International Journal of Business and Behavioral Sciences

Primary
responsibility in
Org.

General Management
Operations/Production
Administration/Logistics
Financial/Accounting
Human Resources
Marketing/Sales
Technical/R&D
Other

Vol. 4, No.6; June 2014

4
100
57
51
34
43
31
30

1.1
28.6
16.3
14.6
9.7
12.3
8.9
8.6

1.1
29.7
46.0
60.6
70.3
82.6
91.4
100

Descriptive Statistics and Pearson Product Movement Correlation (PPMC) Matrix of Variables:
Table 2 contains descriptive statistics comprising upon values of standard deviation, mean, and
correlations for all variables. The continuous learning has mean and standard deviation value of (Mean =
4.57, S.D = 0.19), inquiry and dialogue (Mean = 4.08, S.D = 0.49), for team learning (Mean = 4.37, S.D =
0.29), embedded system (Mean = 3.84, S.D = 0.63), empowerment (Mean = 3.89, S.D = 0.57), system
connection (Mean = 4.05, S.D = 0.43), strategic leadership (Mean = 3.85, S.D = 0.55), employee career
development (Mean = 3.87, S.D = 0.56) and for organizational performance (Mean = 3.86, S.D = 0.42). All
these values are demonstrating that there is a metamorphosis amongst responses specified by
defendants. A general squabble can be recognized on groundwork of minor value of standard deviation
and great value of mean are symptomatic of defendants, covenant with the choices for all questions
enquired from defendants.
There is positive correlation amongst variables. Correlation of continuous learning with organizational
performance is indicating that there is positive and significant but moderate correlation between these
two variables (r = 0.436, p < 0.05), proving that standardized and transparent learning system is part of
organizational performance indicators. Furthermore, inquiry and dialogue has positive and significant
but low degree of correlation (r = 0.395, p < 0.05) with organizational performance. Team learning (r =
0.611, p < 0.05) has significant and marked degree of correlation with organizational performance.
Embedded system (r = 0.521, p < 0.05) with moderate degree of correlation indicates that it will be
beneficial for individuals and organizations when steered after trainings. While, empowerment (r =
0.444, p < 0.05) has positive and significant but low degree of correlation with organizational
performance. System connection (r = 0.478, p < 0.05) has positive and significant but moderate degree
of correlation with organizational performance while, strategic leadership (r = 0.554, p < 0.05) has
positive and marked degree of correlation, last but not least employee career development (r = 0.794, p
< 0.05) has disenable correlation with organizational performance. Thus, from the above results in Table
2 has been concluded that the learning organization and employee career development had positive but
significant relationship with organizational performance. Therefore, H1, H2, H3, H4, H5, H6, H7 are
accepted.

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I se t Ta le a out Mean, Standard Deviation, Reliability and Pearson Product Movement Correlation
PPMC et ee Va ia les
SrNo

Variables

No.
of
Items

1.

Continuous
Learning
Inquiry
and
Dialogue

350

350

3.

Team Learning

350

4.

Embedded
System

350

5.

Empowerment

350

6.

System
Connection
Strategic
Leadership
Employee
Career
Development
Organizational
Performance

350

350

12

2.

7.
8.

9.

Mean

SD

4.57

0.19

4.08

0.49

4.37

0.29

3.84

0.63

3.89

0.57

4.05

0.43

3.85

0.55

350

3.87

350

3.86

1.00

0.78

.57

1.00

0.75

.70

.61

1.00

0.83

.61

.52

.67

1.00

0.82

.48

.36

.49

.59

1.00

0.74

.50

.61

.63

.45

.37

1.00

0.77

.56

.52

.59

.55

.50

.54

1.00

0.81

0.56

.20

.00

.37

.62

.95

.79

.22

1.00

0.73

0.42

.43

.39

.61

.52

.44

.47

.55

.79

1.00

Regression Analysis of Constructs and Interpretations:

In model 1, continuous learning, inquiry and dialogue, team learning, embedded system, empowerment,
system connection and strategic leadership has been regressed with organization performance while in
Model 2, employee career development is included to test the mediation effect. In model 1 of Table 3, R
square value (0.926) is near to 1 that is standard value for R square so it illustrate that these
independent variables are causing impact on dependent variable. In model 2, R square value (0.955) is
greater than the value of model 1 which shows that the model 2 have much stronger relationship with
the dependent variable, organizational performance than model 1. The adjusted R square in the
outcome shows that the dependent variable is impacted by all variables by 92.5% in model 1 and 95. 4%
in model 2
Table 3: Model Summary to Test Mediation of ECD between LO and OP
Model

1
2

.962a
.977b

R Square
.926
.955

R2

Adjusted R
Square
.925
.954

a. Predictors: (Constant), CL, ID, TL, ES, EMP, SC, SL

b. Predictors: (Constant), CL, ID, TL, ES, EMP, SC, SL, ECD

63

Std. Error of
the Estimate
0.926
0.029

.11686
.09118

0.79

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Mediation is a hypothesized causal chain in which one variable affects a second variable that, in turn,
affe ts a thi d a ia le. It ediates the elatio ship et ee a p edi to a d a out o e. Judd a d
Kenny (1990) suggested computing the difference between two regression coefficients. To do this, two
regressions are required (Baron & Kenny, 1986; Preacher & Hayes, 2008).
The result of ANOVA table shows the significance of model and also F test of hypothesis about
population mean. If p value is less than 0.05 then it is significant. Table 4 showed that p value is less than
0.05 (0.00 < 0.05), so the model 1 (i.e. F = 612.506) and model 2 (F = 908.098) are statistically significant.
This means that all the IVs of model are statistically in relationship with dependent variable of study and
best fit for the data.

Table 4: ANOVAa to Test Mediation of ECD between LO and OP

Model

Sum of
Squares
Regression

Df

Mean Square

58.557

8.365

4.671

342

.014

Total

63.227

349

Regression

60.393

7.549

2.835

341

.008

63.227

349

Residual

Residual
Total

Sig.

612.506

.000b

908.098

.000c

a. Dependent Variable: OP
b. Predictors: (Constant), SL, ID, TL, ES, CL, SC, EMP
c. Predictors: (Constant), SL, ID, TL, ES, CL, SC, EMP, ECD
Table 5 shows the results of regression analysis, Model 1 describe that all tested dimensions of learning
organization (LO) has contributed significantly in organizational performance (OP) because p value of
each variable is less than 0.05 (p < 0.05); continuous lea i g = .
,p= .
, inquiry and dialogue
= .
,p= .
, team learning = .
,p= .
embedded syste = .
,p= .
,
e po e e t = .
,p= .
, syste o e tio = .
,p= .
a d strategic leadership
= .
,p= .
etc. The u sta da dized oeffi ie t sho s that i o e u it i ease i ea h of
the independent variable, will cause one unit change in organization performance.

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Table 5: Coefficientsa to Test Mediation of ECD between LO and OP

Model

Unstandardized Coefficients

Model 2

Model 1

Std. Error

(Constant)

.794

.168

CL

.090

.033

ID

.043

TL

Standardized
Coefficients

Sig.

Beta
4.741

.000

.042

2.690

.007

.013

.050

3.368

.001

.048

.024

.034

2.038

.042

ES

.122

.012

.182

10.563

.000

EMP

.295

.018

.400

16.535

.000

SC

.137

.023

.139

5.834

.000

SL

.438

.012

.574

37.785

.000

(Constant)

.185

.137

1.352

.177

CL

.041

.026

.019

1.545

.009

ID

.010

.010

.012

.978

.004

TL

.038

.019

.027

2.048

.045

ES

.020

.011

.030

1.776

.002

EMP

.129

.032

.175

4.066

.000

SC

.038

.019

.039

1.960

.045

SL

.430

.009

.577

48.618

.000

ECD

.578

.039

.768

14.862

.000

a. Dependent Variable: OP
Employee career development mediates between continuous learning and organizational performance,
the ai effe t as edu ed f o = .
,p= .
to = .
,p=.
, = .
, inquiry &
dialogue a d o ga izatio al pe fo a e = .
,p= .
to = .
,p=.
, = .
, tea
lea i g a d o ga izatio al pe fo a e = .
, p= .
to = . , p = .
, = .
,
e edded syste a d o ga izatio al pe fo a e = .
,p= .
to = .
,p=.
, =
0.102), e po e e t a d o ga izatio al pe fo a e = .
,p= .
to = .
,p=.
, =
.
, syste o e tio a d o ga izatio al pe fo a e = .
,p= .
to = .
,p=.
,
= .
a d fi ally, st ategi leade ship a d o ga izatio al pe fo a e = .
,p= .
to =
.
,p=.
, = .
. Altogether, the results proved that the hypothesis H1, H2, H3, H4, H5, H6, H7
and H8 are fully accepted. The ag itude of of ea h i depe de t a ia le is shown in the following
models:
Model 1:
OP = 0 + 1 CL + 2 ID + 3 TL + 4 E + 5 EMP + 6 C + 7 (SL)

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International Journal of Business and Behavioral Sciences

Vol. 4, No.6; June 2014

OP = 0.794 + 0.090(CL) + 0.043(ID) + 0.048(TL) + 0.122(ES) + 0.295(EMP) +

0.137(SC) + 0.438(SL)
Model 2:
OP = 0 + 1 CL + 2 ID + 3 TL + 4 E + 5 EMP + 6 C + 7 L + 8 (ECD)
OP = 0.185 + 0.041 (CL) + 0.010 (ID) + 0.038 (TL) + 0.020 (ES) + 0.129 (EMP) + 0.038 (SC) + 0.430 (SL) +
0.578 (ECD)
The above multiple regression models shows that one unit increase in the magnitude of coefficient (beta
coefficient) of each IV (CL, ID, TL, ES, EMP, SC, SL and ECD), it will cause one unit change in the
ag itude of OP. The 0 is the intercept that has the magnitude of 0.794 in Model 1 and 0.185 in Model
2 respectively.
In Model 1, standardized coefficient of strategic leadership is the first factor that contributed
significantly in organizational performance with the value of standardized coefficient of 0.574,
empowerment with the second highest value of standardize coefficient; Beta (0.400), the second factor
that has significance contribution whereas embedded system (Beta = 0.182), system connection (Beta =
0.139), inquiry and dialogue (Beta = 0.50), continuous learning (Beta = 0.42) and team learning (Beta =
0.34) is the third, fourth, fifth, sixth and seventh factor that had contributed in organizational
performance respectively.
In Model 2, standardized coefficient of employee career development is the first factor that contributed
significantly in organizational performance with the value of standardized coefficient of 0.768, strategic
leadership with the second highest value of standardize coefficient; beta (0.577), the second factor that
has significance contribution in organizational performance. Empowerment (Beta = 0.175), system
connection (Beta = 0.039), embedded system (Beta = 0.030), team learning (Beta = 0.027), continuous
learning (Beta = 0.019) and inquiry and dialogue (Beta = 0.012) is the third, fourth, fifth, sixth, seventh
and eighth factor that had contributed in OP respectively. Thus, H1, H2, H3, H4, H5, H6, H7, and H8 are fully
accepted. H1, H2, H3, H4, H5, H6 and H7 shows that all the tested variables had significant influence on
dependent variable; organizational performance. While H8 shows that employee career development is
mediating the relationship between learning organization and organizational performance.

CONCLUSION:
The present study supports to comprehend the relationship among learning organization and
organizational performance; whereas employee career development played mediating role among both
variables in food and personal care products manufacturing sector of Pakistan. It also progresses the
pragmatic results to find evidences for the hypothetical model defined in this study. By arguing that the
seven dimensions of learning organization; continuous learning, inquiry and dialogue, team learning,
embedded system, empowerment, system connection and strategic leadership, have positive and
significant impact on organizational performance. This illustrates that the learning organization
paradigm is necessary approach for the organizations that seek to keep into dynamic competitive
environment. For the reason that due to speedy changes in surroundings, the businesses has become
more complex, vibrant and globally competitive. Thus, excelling in this continually fluctuating
environment for continuous improvement requires more knowledge through constant learning,
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understanding logics behind procedures, taking expertise from skilled workforce to share their
experience through mentoring and coaching, empowering workforce to feel them ownership for taking
decisions. So, organizations that are compatible with learning organization strategies for improvement
can cause promotion of organizational outcomes.
The findings also demonstrate that the employee career development mediates the relationship among
learning organization and organizational performance. This illustrates that the employees and
o ga izatio s o ki g togethe a e e essa y to gua a tee a ee de elop e t s su ess. Although,
employees are responsible for their own career success, function as career planner and enhancers. They
are auditors for their own set of skills, determining gaps in performance proficiency and identifying
areas of strength upon which career development actions can be based. The organizations are obliged
to help employees in becoming aware of opportunities, constraints, choices and consequences,
identifying career related goals, programming their work, and direction regarding sequence of steps to
attai a spe ified a ee goal. O ga izatio s leade s ge e ate a ee de elop e t p og a poli ies,
allocate financial resource, and provide collaboration and integration.
Cream of the crop is that the organizations should ponder the inference of employee career
de elop e t i to o ga izatio s usi ess de elop e t pla . It guides the o ga izatio s to adopt the
change that can help to attain their defined goals and improve the performance through employee
involvement and enthusiasm toward their job responsibilities. A learning organization through
development and capacity of up-to-date changes can have an empathetic role in alleyway of the
i di iduals a ee de elop e t that o t i utes i the o ga izatio al pe fo a e.
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