AIRC 2015

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  1. Mrs. S. Athambawa Senior Lecturer, Department of Management, and Mr. M.N Mohamed Bilal Assistant Lecturer, Department of Management South Eastern University…
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  • 1. Mrs. S. Athambawa Senior Lecturer, Department of Management, and Mr. M.N Mohamed Bilal Assistant Lecturer, Department of Management South Eastern University of Sri Lanka Business Transformation through Human Resource Transformation: An Empirical Study with regard to Tea Industry in Kandy District 20 November 20151 4th Annual International Research Conference- FMC- SEUSL
  • 2. Background of the Study  Today, HR is considered as an important resource than ever before since the business leaders and decision makers have identified that HR is the only resource that could make a significant difference at the end of the day since the modern business context is very competitive as well as challengeable.  Business transformation can be defined as a change that occurs in how the business is been conducted specifically with the intervention of the top management who drives the change through moderating human knowledge, skills, attitudes, and competencies. 20 November 20152 4th Annual International Research Conference- FMC- SEUSL
  • 3. Contd……  The Sri Lankan tea industry has a prolonging history of around 175 years and HR plays a vital role in tea industry.  There are very few studies in Sri Lanka except this paper which focused in this area of study. As the global tea industry is very competitive, the slow market growth means each producer faces the challenge of maintaining their position.  This study, Business transformation through HR transformation regarding the tea industry in Kandy district which is one of the popular districts for tea , definitely helps the tea industry enterprises in the district to improve their business. 20 November 20153 4th Annual International Research Conference- FMC- SEUSL
  • 4. Research Question  As the tea industry requires a large number of human resource to run their business smoothly, Based on our research problem, the research question was developed which is as follows; What is the extent that HR is being used to transform the business within the Tea industry in the Kandy District? 20 November 20154 4th Annual International Research Conference- FMC- SEUSL
  • 5. Objectives of the Study  This research is carried out with the expectation of accomplishing the following objectives.  The main objective is to identify up to what extent does the Tea producers in the Kandy District utilizes HR in order to transform their business.  The utilization of HR will be tested based on the extent that employees are encouraged to utilize their knowledge, skills, attitudes, and competencies in order to transform the business. 20 November 20155 4th Annual International Research Conference- FMC- SEUSL
  • 6. Theoretical Framework Author and Year Review Lissak, et.al (2009) Reviews that a transformation begins with understanding both the execution expectations and the strategic requirements of the business. Durkovic (2009) Reveals knowledge, innovation and cooperation are becoming the three basic elements of the new infrastructure necessary to create prosperity in the new economy, thus Enterprises need to be able to create new knowledge instead of relying on the existing Tan and Nasurdin (2011) state that HRM practices can generate increased knowledge, motivation, synergy, and commitment of a firm's employees, resulting in a source of sustained competitive advantage for the firm. 20 November 20156 4th Annual International Research Conference- FMC- SEUSL
  • 7. Contd………. Author and Year Review Long & Ismail, (2010) The role of HR has changed and the leadership skill is one of the most important skills today, since most of the researches argue that HR manager is indeed a strategic partner which is also crucial in transforming a business Yeung and Berman, (1997) Employee attitudes and behaviors impact the level of customer satisfaction and retention. In turn, customer attitudes and behaviors influence shareholder satisfaction and retention. Finally, it affects the employee satisfaction. Abbas and Asghar, (2010), cited from Gruban, (2003). Revealed that the leadership competences have a great relation with the organizational success and change 20 November 20157 4th Annual International Research Conference- FMC- SEUSL
  • 8. Conceptual Framework  Having explained the variables and its relationships, the research model is given as follows; TRANSFORMATI VE HR Knowledge Skills Attitudes Competencies Business Transformatio n 20 November 20158 4th Annual International Research Conference- FMC- SEUSL
  • 9. Hypothesis  The following hypothesis was formulated based on the literature evidence. H1: Employee knowledge has a significant impact on business transformation. H2: skills of employees are positively related towards transformation of business. H3: Worker attitude has a high influence in successful transformation of business. H4: Employee competencies are positively related towards transformation of business. 20 November 20159 4th Annual International Research Conference- FMC- SEUSL
  • 10. Research Methodology  The research was conducted among tea business firms in the Kandy district of Sri Lanka.  Primary data was used for this study. 75 tea manufactures were issued questionnaire consisting of personal information and items on Knowledge, Skills, Attitudes and Capabilities.  The researcher selected a sample of 100 respondents representing top and middle level management from selected organizations based on convenient sampling method. 20 November 201510 4th Annual International Research Conference- FMC- SEUSL
  • 11. Contd…….. • A pilot study was conducted with 20 respondents of tea producers s in the region. Reliability analysis was carried out in order to test the internal consistency of the questionnaire. • The questions regarding all the variables were proven to be reliable based on the above results. 20 November 201511 4th Annual International Research Conference- FMC- SEUSL Variable Cronbach's Alpha value Knowledge 0.617 Skills 0.85 Attitude 0.849 Competencies 0.733 Business Transformation 0.867
  • 12. Results and Discussion  In descriptive measures, the mean values for each of these sub variables shows that the respondents generally agree to the statements. Accordingly knowledge has a mean value of 3.8725 with a standard deviation of .38789, where even all the other mean values are well above 3.50. The overall average mean value of HR is around 3.86.  The mean value of business transformation is 4.01 with a standard deviation of .4512, which indicate that respondents generally are satisfied with the levels of their human resources and transformation of their business. 20 November 201512 4th Annual International Research Conference- FMC- SEUSL
  • 13. Contd… Descriptive Statistics Variable Mean Std. Deviation Knowledge (I) 3.87 .39 Skills (I) 3.96 .57 Attitude (I) 3.66 .75 Competencies (I) 3.95 .47 Bus: Transformation (De) 4.01 .45 20 November 201513 4th Annual International Research Conference- FMC- SEUSL
  • 14. Contd….  The correlation between knowledge and business transformation is r=0.652 with 0.00 significant which is strong positive while Employee skills are also strong positively correlated with business transformation with a value of r=0.571, with 0.00 significant level.  Moving on with correlations, employee attitude is very crucial which indicates a correlation value of r=0.71 with 0.00 significant while The employee competencies, has the strongest correlation with business transformation with a correlation value of r= 0.801 with 0.00 significant, which again indicates that the overall ability of employees is very supportive towards transformation of the tea industry in Kandy district. 20 November 201514 4th Annual International Research Conference- FMC- SEUSL
  • 15. Contd……..  According to the regression results the model fit explains that r2 value is .68, which indicates 68% of business transformation can be experienced through proper HR transformation which emphasizes the fact that HR makes a higher impact on successful transformation of businesses. Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change df 1 df 2 Sig. F Change 1 .825a .680 .667 .26047 .680 50.520 4 95 .000 Regression- Model summary 20 November 201515 4th Annual International Research Conference- FMC- SEUSL
  • 16. Hypothesis Testing  Considering the first hypothesis, “Employee knowledge has a significant impact on business transformation”, it is very clear that this can be proven to be correct based on the descriptive and correlation statistics where the mean value is 3.8725 and the correlation value between knowledge and business transformation is 0.652 at 0.00 significant level.  Moving on to the second hypothesis, “skills of employees are positively related towards transformation of business”, again the stats indicate that the preformed hypothesis is correct, where the mean value is 3.9587 and correlation is positive between skills and business transformation with a value of 0.571 at 0.00 significant level. 20 November 201516 4th Annual International Research Conference- FMC- SEUSL
  • 17. Contd……….  The hypothesis three, “Worker attitude has a high influence in successful transformation of business. The response is positive towards the worker attitudes with a mean value of 3.5688, and Worker attitude is high positively correlated with business transformation, where the value is 0.71 at 0.00 significant level.  The final hypothesis which is “Employee competencies are positively related towards transformation of business” can also be proven correct since the mean value is 3.9478 and the correlation value is high positive which is 0.801 at 0.00 significant level, which is also the highest out of the lot. 20 November 201517 4th Annual International Research Conference- FMC- SEUSL
  • 18. Conclusion, Managerial Implication and Limitations  Though the overall results of this study is favorable , there is some room for improvement as always.  Most of the managers were experienced people while 36% of them were between 30-40 years, since the ownership remains with the family in most of the cases and the educational background is not considered.  only 4% of the respondents were first degree holders, while 37% were G.C.E A/L qualified. There were around 12% who were done with diploma and certificate courses.  34% of managers were dissatisfied with the current knowledge levels while 67% were not happy with the self confidence of employees.  around 63% of managers are disappointed with factors20 November 201518 4th Annual International Research Conference- FMC- SEUSL
  • 19. Contd………. 20 November 2015 4th Annual International Research Conference- FMC- SEUSL19  The correct utilization of younger employees is crucial to succeed in business transformation. Thus, the Ceylon tea board and other relevant bodies can conduct programmes to attract, retain, and develop younger generation.  The relevant authorities can enter to mutual agreements with state universities, or professional bodies to provide some education to senior level managers, where they can study ways to develop the business.  The managers together with the Sri Lanka tea board should deeply focus on generating new knowledge through finding different kinds of employee potentials and to move along with modern technologies.
  • 20. Contd………  Another important area is shaping up the employee attitude and morale, through creating better organizational values, culture and climate. Focusing on the current and future environmental trends.  Considering the field of HR, so many other areas such as industrial health and safety, employee job satisfaction can be focused in future.  Apart from HR, there are so many other factors that contribute towards successful business transformation.  Finally, we hope that this study will open the doors for all the interested groups to successfully transform their business while valuing the HR correctly.20 November 201520 4th Annual International Research Conference- FMC- SEUSL
  • 21. THANK YOU 20 November 201521 4th Annual International Research Conference- FMC- SEUSL
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