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1 International Journal of Advanced Scientific Research & Development (IJASRD) p-issn: e-issn: PP A STUDY ON IMPACT OF TRAINING ON EMPLOYEES JOB SATISFACTION (WITH SPECIAL REFERENCE TO AUTOMOBILE MANUFACTURING INDUSTRIES IN CHENNAI) M. Jawaharlal Nehru Department of Commerce, DRBCCC Hindu College, Pattabiram, Chennai 72 Dr. Hariprasad Reddy Research Supervisor, Department of Corporate Secretaryship, Gurunanak College, Chennai ABSTRACT O ver the last couple of years Chennai has truly developed into a world class industrial and manufacturing hub with organizations across IT, Automotive, Automobile, Telecom, and Retail springing up everywhere. Talking about the Automobile sector, Chennai is fast moving in the direction of becoming India s next Detroit. There has been an investment of more than US$ 3 billion in this sector which is slightly more than Gurgaon, another auto hub. In spite of the acknowledgment that Automobile Manufacturing Industries in Chennai have gained their recognition, the researcher found that it is important to know the job satisfaction level of employee s working in Automobile Manufacturing Industries, hence study was conducted evidence of the connection between HR practices in Automobile Manufacturing Industries in with association to training and job satisfaction. This study seeks to address this knowledge gap by exploring the relationship between training practices in Automobile Manufacturing Industries and job satisfaction from the perspective of employees of Automobile Manufacturing Industries located at Chennai. The Population for this study was the entire Passenger vehicles Automobile Manufacturing Industries employees at Chennai. Data for the study was collected via a structured generic questionnaire from 200 employees within the population. Responses on the 5-point Likert scale were obtained and the hypotheses tested using structural equation model where used. Implications of the study reveal that a SEM model can be used to determine factors that persuade level of job satisfaction. KEYWORDS Job satisfaction, SEM model, Automobile Manufacturing Industries I. INTRODUCTION The Automobile Manufacturing industry has played a major role in placing India on the global map. Chennai is fast stirring in the direction of becoming India s next Detroit. The biggest reason which has encouraged automobile players of all hues and sizes to invest in Tamil Nadu has been the friendly industrial policies formulated by the government. The state s government policy gives special incentives to organizations investing more than 4000 cr which has attracted investments worth more than Rs 22,000 cr in last 5 years. These incentives range from those like tax cuts, easy acquisition of land , IJASRD, All Rights Reserved
2 International Conference on Innovation in Commerce and Management (ICONICM 2015) organized by PG & Research Dept. of Commerce, A.V.C. College (Autonomous), Mayiladuthurai. and also speedy implementation of the projects. These policies have also helped organizations to develop strong technological and research centres in the city of Chennai. Hyundai Motors' Chennai plant was started with US$ 900 billion and is now capable of producing 250,000 units yearly with its upgraded standards. The plant is facilitated with the scope for research and development and it has made Chennai their hub for small cars. And above all, it s not only auto manufacturers who are making a beeline for Chennai. Auto component manufacturers like Visteon, Delphi produce more than 25% of their components here. The government s recent move in setting up one of the biggest R & D centres for building up technological and R & D expertise will only add to Tamil Nadu s image as an investment friendly state in the Automobile sector. Ford has a manufacturing plant located in Chennai which contributes around 60,000 vehicles annually to the automobile industry as a whole. Porsche India is looking ahead to control the luxury car market in India and thinking about hiring new dealers in Chennai. BMW considers Chennai to be the most appropriate location for its manufacturing unit because it can afford a pool of investments. It has decided to invest nearly ` 180 crore in a time span of 5 years. Naza is considering establishing a plant in Chennai to produce cars for the automobile market in Chennai as well as in the other automobile markets in India. It is going to spend a lump sum amount of US$ 150 million at the onset. Chennai has attracted the attention of the German company, Volkswagen also. Chennai is rapidly becoming the choicest location for the automobile industry due to its skillful and efficient workforce aided with its expertise in the manufacturing sector. 1.1 Objectives of the Study The main objective of this study is, to analyze factors that influence job satisfaction of employees working in Automobile Manufacturing Industries at Chennai with respect to core training and development practices. For this purpose the factors that influence job satisfaction are such as monetary rewards, promotional opportunities, safe and healthy wellbeing, where relationship among the selected respondents were taken to study the relationship between job satisfaction and its various dimensions using structural equation model applied and to recommend a fit model to Automobile Manufacturing Industries at Chennai. 1.2 The Research Hypothesis The research hypotheses have been defined on the basis of the model fit summary outlined above and using previous research on employees job satisfaction. On the basis of above presented model, the following hypothesis is proposed: H0: Employees job satisfaction is not having positive impact with its various dimensions like monetary rewards, promotional opportunities, safe and healthy working environment, appropriate training and development activities and employee wellbeing and its relationship among the selected respondents. H1: Employees job satisfaction is having positive impact with its various dimensions like monetary rewards, promotional opportunities, creating safe and healthy wellbeing and its relationship among the selected respondents. Volume 02, Special Issue 02, Version th & 11 th August
3 Nehru, J. M., et al., (2015) II. RESEARCH METHODOLOGY The study extensively depended on the primary data. However, some secondary sources of data were also consulted, especially for the purpose of gathering background information supporting the study. Data was collected from employees working in Automobile Industries where from passenger vehicles that are been manufactured in Chennai. All employees working in the organizations were requested to participate in the survey including technical and non- technical employees. A total of 200 employees were contacted by the researcher requesting for participation in the study with a questionnaires. Job satisfaction was measured using a well-structured 5 section generic questionnaire (Scott Macdonald & Peter Maclntyre, 1997). The scale sought to measure the overall job satisfaction and their aspects are monetary rewards, promotional opportunities, safe and healthy working environment, appropriate training and development activities and employee wellbeing and its interpersonal relationship among the selected respondents. 2.1 Structural Equation Model (SEM) - Job Model In order to ascertain on what extent the training and development activities affect the job satisfaction of the employees working in Automobile Manufacturing Industries at Chennai. All the variables were studied with the help of structural equation model. Structured Equation Modeling is used to test and eliminate causal relationship using a combination of statistical data and qualitative caused assumptions. It is considered the best approach because SEM unlike other methods does not have limitation on the number of variables. There is no difficulty in hypothesis testing in SEM because it takes the confirmatory approach rather than the exploratory approach. Many subcriteria are considered under each criterion. The response is arrived for all the sub-criteria from the people involved in the decision making process. This is the reason why relative is weightage arrived from SEM, which is considered more valid than through any other approach. This model also takes measurement error into account when analyzing the data statistically. SEM is capable of estimating or assessing measurement error. It can incorporate both observed and latent variables. SEM models require less reliance on basic statistical methods. 2.2 The Model The employees job satisfaction model is tested based on the following constructed model. Even though, various number of factors available for finding the job satisfaction of the employees at Automobile Manufacturing Industries at Chennai in earlier studies, these five factors are newly constructed and developed by the researcher Job Model model raised owing to the recognition of these researcher. From this model, the researcher has made an attempt to find out the factors that influence job satisfaction for the employees who working at Automobile Manufacturing Industries in Chennai. Testing a measurement model is underlying a full structural model first. If the fit of the measurement model is found acceptable, then one should proceed to test the structural model. The structural equation model is conducted to assess construct validity by using the maximum likelihood method. The confirmatory test result showed good fit as shown in the following model fit summary table , IJASRD, All Rights Reserved
4 International Conference on Innovation in Commerce and Management (ICONICM 2015) organized by PG & Research Dept. of Commerce, A.V.C. College (Autonomous), Mayiladuthurai. Figure Showing Hypotheses Formulated Model Employees Job Table Showing Model Fit Summary Employees Job Model No. Test Factor Value Range Result 1 Chi-Square p>0.05 1% level 2 Chi-Square / df (5) Good Fit 3 GFI (Goodness-of-fit index) >0.95 Good Fit 4 AGFI (Adjusted goodness-of-fit index) >0.95 Good Fit 5 CFI (Comparative fit index) >0.95 Good Fit 6 NFI (Normed fit index) >0.95 Good Fit 7 RMSEA (Root mean square error of approximation) <0.08 Good Fit A model is said to be fulfilling the criteria of goodness of fit, if it satisfies certain values. Based on these values, estimated value for the model is which satisfy the required condition. Similarly, the required value of root mean square error of approximation (RMSEA) should be less than Against this value, the estimated model value is which highly validates the result. Similarly, model fit indices (GFI, AGFI, CFI, and NFI) for this employees job satisfaction model indicates that the model fits well. Regression weights between items and factors variables are shown in the following path diagram. 2.3 Hypothesis Formulation The research hypotheses have been defined on the basis of the model fit summary outlined above and using previous research on employees job satisfaction. On the basis of above presented model, the following hypothesis is proposed: H0: Employees job satisfaction is not having positive impact with its various dimensions like monetary rewards, promotional opportunities, safe and healthy working condition, training and development activities and employee wellbeing among the selected respondents. Volume 02, Special Issue 02, Version th & 11 th August
5 Nehru, J. M., et al., (2015) Figure Showing Resulted Hypothesis Model Measured Variable Employee Wellbeing Training and Development Activities Safe and Healthy Working Condition Promotional Opportunities Monetary Rewards Table Showing Regression Weights Job Model Latent Variable Estimate S.E. C.R. Result % % % % % From this result, it is noted that the estimates of the coefficient of training and development variable are high which indicates that the job satisfaction of the employees are highly influenced the training and development activities provided by the Automobile Manufacturing Industries at Chennai and low in monetary rewards as 1.00 indicates as not highly influenced by the employees in Automobile Manufacturing Industries at Chennai. These five variables are highly significant at 1 percent level and its hypothetical association is presented in the following table. Table Showing Testing of Hypotheses H1 : Hypotheses There is no positive impact of monetary rewards on employees job satisfaction H2 : There is no positive impact of promotional opportunities on employees job satisfaction H3 : There is no positive impact of safe and healthy working condition on employees job satisfaction H4 : There is no positive impact of training and development activities on employees job satisfaction Hypothetical Relationship Result H5 : There is no positive impact of employee wellbeing on employees job satisfaction From the above table, it is found from the result of hypothesis that all the measured variables monetary rewards, promotional opportunities, safe and healthy , IJASRD, All Rights Reserved
6 International Conference on Innovation in Commerce and Management (ICONICM 2015) organized by PG & Research Dept. of Commerce, A.V.C. College (Autonomous), Mayiladuthurai. wellbeing are having positive association with the employees job satisfaction in the selected Automobile Manufacturing Industries at Chennai. III. DISCUSSION OF THE RESULT From the path diagram, measured variables with latent variable of influencing factors is having positive relationship and also significant at 1 percent. The analysis of the Job Model, all the measured variables are significantly associated with job satisfaction. With respect to the above model training and development programme highly influences job satisfaction among the employees, who are working in Automobile Manufacturing Industries at Chennai. Hence the result indicated are good fit model that is to be suggested to the Automobile Manufacturing Industries in Chennai to improve job satisfaction. IV. CONCLUSION Since a major challenge faced by all Automobile Manufacturing Industries at Chennai regarding job satisfaction among its employees and retention of work force, hence it would be beneficial for organizations and its managers to make conscious efforts to develop human resource policies that are in alignment to meet the needs of the employees and to motivate them. The findings of this study have also pointed out that the key items in HR practices such as monetary rewards, promotional opportunities, safe and healthy wellbeing are having positive association with the employees job satisfaction in the selected Automobile Manufacturing Industries at Chennai. It is imperative for Automobile Manufacturing Industries in Chennai and their managers to review their practices to strengthen the bond between employees and the organization maintain good levels of motivation, increase job satisfaction that would result in increase in organizational commitment and minimize employee turnover. REFERENCES [1] Khaleque, A., & Choudhary, N. (1984). Job facets and overall job satisfaction of industrial managers. Indian Journal of Industrial Relations, Vol. 20, P [2] Lambert, E.G., Hogan, N.L., Barton, A., & Lubbock, S.M. (2001). The impact of job satisfaction on turnover intent: A test of a structural measurement model using a national sample of workers. Social Science Journal, Vol.38 No.2, P [3] Locke, A. (1976). The nature and causes of Job. In M.D. Dunnette (Ed.), Handbook of Industrial and Organisational Psychology (pp ). Chicago: Rand McNally. [4] Luthans, F. (2002). Organisational Behaviour. 9th ed. McGraw-Hill. Irwin. P [5] Mullarkey, S., P. R. Jackson, et al. (1997). "The Impact of Technology Characteristics and Job Control on Worker Mental Health." Journal of Organizational Behavior 18 (5): [6] Mihir Dash, Anubha Singh and Vivekanand. Motivation in ITeS Industry: Dimensionality with Reference to Herzberg's Theory. ICFAI Journal of OB. Vol.VII, No.2, April P [7] Pavan Kumar B and Vijai N Giri. Organizational Commitment, Climate and Job : An Empirical Study. ICFAI Journal of OB. Vol.VII, No.2, July P [8] Dr. J. Sulaima and Mr. M. Alaguthankamani A Study on Employee s and Safety Measures (With Special Reference to two Wheeler Spare Parts Manufacturing Industry in Chennai), Indian Journal of Applied Research, Volume: 3, Issue: 3, March 2013, ISSN X. P Volume 02, Special Issue 02, Version th & 11 th August
Available online www.bmdynamics.com ISSN: 2047-7031. Society for Business and Management Dynamics
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