Training and Development in ABC Transport PLC in Nigeria - Case Study Example

Evaluating the Mediating Role of Transformational Leadership on Organizational Learning and Performance: A Study of Training and Development in ABC Transport PLC in Nigeria - A Research Proposal - Student’s Name: Date of Submission: Total Number of Words: 3,001 1. Background Established back in February 13, 1993, ABC Transport PLC is a company that offers road passenger transportation services in Nigeria (ABC Transport, 2014a; Bloomberg, 2014). With its determination to offer good public transport services, ABC Transport managed to set-up several bus terminals in different state and districts (i.e. Abuja Terminal, Aba Termina, and Awka Terminal, Akwanga Terminal, among others) (ABC Transport, 2014b). Despite ABC Transport’s desire to improve its quality service, this company is often being criticized for its inability to provide the general public with a safe transport experience (Nairaland Forum, 2012). On top of its poor service related to delay in transport caused by engine failure (Nairaland Forum, 2012, 2010), there are some people who lost their loved ones due to the numerous road accidents ABC Transport has been involved with in the past (Nairaland Forum, 2012). Because of the number of road accidents and delay in transportation services, a lot of people in Nigeria have lost their confidence in this particular bus transportation company in Nigeria (Nairaland Forum, 2012). One of the challenges that most business managers are facing include the need to establish and maintain the company’s competitiveness within its corresponding industry (Franken, Edwards and Lambert, 2009, p. 49). In line with this, several studies show that the use of transformational leadership style can improve the overall organizational performance since the application of this particular leadership style is effective in terms of positively influencing a large group of employees (Givens, 2008; Rhodes, Walsh and Lok, 2008) and improve employees’ ability to develop innovative attitude and behavior (Michaelis, Stegmaier and Sonntag, 2010). As explained by Walumbwa, Avolio and Zhu (2008, p. 793), transformational leadership style is strongly related to the positive “attitude, behavior and performance” of the employees. In most cases, the use of transformational leadership style can increase the individual work performance of each employee by making them become more self-efficient (Walumba, Avolio and Zhu, 2008, p. 815). Furthermore, the use of transformational leadership style is also effective in terms of enabling the business managers motivate and encourage each employee to align their personal values with the values of the business organization (Givens, 2008). Each time a business organization needs to implement organizational change, business managers who opt to use transformational leaderhsip style are able to effectively manage “resistance-to-change” and inspire “innovative change” (Lussier, 2012, p. 337). Similar to the use of transformational leadership style, organizational learning capability is also important in terms of increasing employees’ individual proficiency and performance (Argote, 2013, pp. 86 – 87) as well as the overall performance of the business (Lapré and Nembhard, 2011, p. 72; Jerez-Gómez, Céspedes-Lorente and Valle-Cabrera, 2005). Recently, Alegre and Chiva (2013) found out that learning on innovation can create a positive impact on the company’s innovation performance. Similar to the research findings of Jerez-Gómez, Céspedes-Lorente and Valle-Cabrera (2005), Goh, Elliot and Quon (2012) also found a positive relationship between organizational learning capability and organizational performance. In general, organizational learning is all about the need to improve each employee’s knowledge and ability to make important decisions that can either directly or indirectly increase the team’s ability to meet and satisfy the company’s business objectives (Caemmerer and Wilson, 2010, p. 290). In line with this, Holland and Salama (2010) pointed out that the ability of the business managers to establish a culture that promotes organizational learning is part of the organizational growth and development. By encouraging each employee to participate in organizational learning, each employee will be given the opportunity to communicate, interact and become more involved in sharing new knowledge they have acquired through their personal work experiences (Caemmerer and Wilson, 2010, p. 290; Curado, 2006, p. 26). Eventually, it is the practice of interdisciplinary collaboration that can increase the overall business performance (Lapré and Nembhard, 2011, p. 72). Both organizational learning and the use of transformational leadership style can increase the overall business performance. With this in mind, this study will seek to evaluate the mediating role of transformational leadership on organizational learning and business performance of ABC Transport in Nigeria. In doing so, the top management of ABC Transport can have a better idea on how they can significantly improve not only the individual performance of its employees but also its overall business performance. There are quite a lot of research studies made in the past regarding the significance of using transformational leadership and business performance. In general, the term “altruism” is all about the need to consider other people’s objectives before one’s own personal objectives (Batson et al., 2003, pp. 279 - 295). To gain better understanding on how transformational leadership can affect the business, Singh and Krishnan (2008) purposely explored the mediating role of altruism in the relationship between transformational leadership and self-sacrifice. On the other hand, Gong, Huang and Farh (2009) examined the mediating role of employees’ creative self-efficacy on employees’ learning orientation, transformational leadership, and employee creativity. In the case of Miao, Newman and Lamb (2012), the authors examined the mediating role of being able to identify themselves with the leader and its impact on the followers’ work performance and perception on transformational leadership behaviour. It is surprising to know that up to the present time, there is no single study that focuses the mediating role of organizational learning and transformational leadership on business performance. Since ABC Transport is currently in need to improve its overall business performance, there is a strong need to closely examine the mediating role of organizational learning and transformational leadership on ABC Transport Company’s business performance. By doing so, the top management of ABC Transport can have a better idea on how they can develop useful strategies that will help improve the quality of service they offer to the public. 2. Aims and Objectives This study aims to evaluate the mediating role of transformational leadership on ABC Transport Company’s organizational learning and business performance. On the other hand, the main objective of this study is to be able to improve the company’s overall business performance through the creation and implementation of effective training and development programme. To help address the main objective of this study, the following sub-research objectives will be considered in the proposed research study: (1) To be able to identify specific areas in the case of ABC Transport that needs further improvement (i.e. how to avoid delays in transportation schedule, how to avoid road accidents, etc.); and (2) To learn more on how public transportation companies are able to improve their service quality. 3. Literature Review Organizational learning can positively affect business performance (Goh, Elliot and Quon, 2012; Lapré and Nembhard, 2011, p. 72; Jerez-Gómez, Céspedes-Lorente and Valle-Cabrera, 2005). First of all, organizational learning increases each employee’s proficiency and performance (Argote, 2013, pp. 86 – 87). By encouraging each employee to communicate and interact with the rest of the team members (Caemmerer and Wilson, 2010, p. 290; Curado, 2006, p. 26), employees’ knowledge, skills and decision-making abilities also improves (Caemmerer and Wilson, 2010, p. 290). With this in mind, Lapré and Nembhard (2011, p. 72) explained that the practice of interdisciplinary collaboration can increase the overall business performance. On top of improving each employee’s ability to develop innovative attitude and behavior (Michaelis, Stegmaier and Sonntag, 2010), transformational leadership can improve the overall organizational performance by allowing the managers to positively influencing a large group of employees (Givens, 2008; Rhodes, Walsh and Lok, 2008). In line with this, Walumba, Avolio and Zhu (2008, p. 815) explained that transformational leadership can make an employee become self-efficient which is important in terms of increasing their individual work performance. Aside from effectively managing organizational change (Lussier, 2012, p. 337), transformational leadership can also improve the overall performance of a business by making it possible for each employee to align their personal values with the organizational values (Givens, 2008). Leadership in general can positively influence the development of organizational culture which subsequently promotes organizational learning or organizational learning capabilities (Carmeli and Sheaffer, 2008; Berson et al., 2006). In line with this, several empirical studies that were conducted in the past strongly suggest that the use of transformational leadership style can help facilitate the process of establishing organizational culture that closely observes the importance of organizational learning (García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2011; García-Morales, Matias Reche and Hurtado Torres, 2008; Aragón-Correa, García Morales and Cordón Pozo, 2007). It is also possible that the type of leadership style used by the business managers can greatly affect the quality and effectiveness of organizational learning (Vera and Crossan, 2004). For instance, Vera and Crossan (2004) mentioned that the use of transformational leadership style normally promotes the practice of generative learning whereas the use of transactional leadership style will promote the practice of adaptive learning. It simply means that organizational performance can increase through product and service innovation and organizational learning (García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2011). 4. Methods Aside from discussing the search for qualified research survey respondents, this section will discuss how the research hypotheses presented below will be analyzed and tested statistically: Research Hypothesis No. 1: Organizational learning positively affects ABC Transport’s overall business performance. Research Hypothesis No. 2: The use of Transformational leadership style will positively affect ABC Transport’s overall business performance. Research Hypothesis No. 3: Transformational leadership mediates ABC Transport’s organizational learning and overall business performance. Specifically the term “mediate” means to act as a go-between. In this particular research hypothesis, the transformational leadership serves as the mediator whereas organizational learning and business performance serves as the independent variable and dependent variable respectively. In other words, the research hypothesis no. 3 strongly suggest that the use of transformational leadership style when managing a large group of employees can positively mediates the relationship between organizational learning and overall business performance in ABC Transport in Nigeria. The proposed research method design is composed of a combine quantitative and qualitative research study. In general, a quantitative research question is commonly used to enable the researcher draw a research study findings and conclusion based on the computed numerical data (Hair et al., 2011, p. 295) whereas a qualitative research study such as a research interview or the use of open-ended questions in the research survey questionnaire does not involve the use of numerical data but more on gathering subjective response coming from each of the research survey respondents (Saldana, 2011, p. 163). It simply means that qualitative research study focuses more on analyzing the text when coming up with a research study conclusion (Bryman and Bell, 2003). As part of the data collection process, the proposed research method will make use of a research survey questionnaire which was purposely designed to enable the researcher capture the generalized response of all research participants particularly with regards to the research hypotheses presented in section 1.4 including the research survey respondents’ perception with regards to specific areas in the transportation services offered by ABC Transport that needs further improvement (i.e. how to avoid delays in transportation schedule, how to avoid road accidents, etc.) and strategic ways on how public transportation companies are able to improve their service quality. In the process of gathering these data, it is possible to meet the main objective of this study which is to be able to improve the company’s overall business performance by creating and implementing effective training and development programme. Specifically the research survey questionnaire is composed of 10 items. The first research survey question aims to determine the frequency in which the research survey respondents are taking the bus service offered by ABC Transport. Eventually, the 2nd to 8th research survey questions were designed using questions that are answerable by “yes” or “no” followed by asking “why”, “how”, or “what”. Basically, the main reason why there is a need to ask follow-up questions like “why”, “how”, or “what” is to encourage the research survey respondents to provide a more subjective response as to why they decided to answer “yes” or “no” in each questions asked. For instance, the 3rd research survey question purposely asked whether or not the research survey respondent have experienced bus travel delays with ABC Transport. In case the research survey respondent answered “yes”, the research survey respondent was asked to explain what happened. The 9th research survey question purposely seeks any suggestions from the research survey respondents on how ABC Transport can effectively improve the quality of their bus service. Using the five-point Likert scale type of questions, the 10th and last research question was purposely designed to test the three (3) research hypotheses presented on page 13. A minimum of 100 research survey respondents will be invited to participate in the actual research survey study. Regardless of age, nationality, and ethnic background, qualified research survey respondents for this study include all male and female individuals who regularly use the bus transportation services offered by ABC Transport. To easily locate qualified research survey respondents, prospective research survey respondents will be approached inside the vicinity of ABC Transport terminals (i.e. Abuja Terminal, Aba Termina, and Awka Terminal, Akwanga Terminal, among others) (ABC Transport, 2014b). After visiting one of the terminals of ABC Transport, the researcher will carefully observe and approach only those individuals who are sitting inside the waiting area. Basically, the main reason for approaching individuals who are not in a hurry is to increase the chances wherein the targeted research survey respondents would agree to participate in the actual research survey study. Using the MS office excel software, the quantitative data gathered from research survey questions 1 to 8 will be measured accordingly (i.e. frequency and percentage). After computing the basic frequency and percentage in each of the said research questions, the numerical data will be analyzed together with each of the subjective response of each research survey respondent. By analyzing the quantitative data together with the qualitative research findings, it is easier to determine why the research survey respondents said “yes” or “no” in each of the said research survey questions. Computation method that will be applied to the 10th research survey question is similar to the computation used in research survey questions 1 to 8. To enable the readers to easily understand the research findings, tables and graphs will be used in the final presentation (i.e. pie chart, bar chart, etc.). As part of the research ethics, it is appropriate on the part of the researcher to carefully observe the principles of autonomy (Reynolds, Woods and Baker, 2007, p. 119). In line with this, Reynolds, Woods and Baker (2007, p. 119) explained that the researcher should provide each and every prospective research survey respondents enough time, freedom and free will to decide on whether or not they choose to participate in the actual research survey study. In relation to informed consent, the researcher will purposely discuss the main purpose of this study to each prospective research survey respondents. Since it is not always possible to obtained a signed informed consent form from each of the research survey respondents (de Vaus, 2002, p. 61), this study will consider all completed research survey questionnaire as an automatic agreement that the research survey respondents have voluntarily agreed to participate in this study. Instead of requiring each of the research survey respondents to sign an informed consent form, the research survey questionnaire was purposely designed with a note indicating that the research survey respondents voluntarily agreed to participate in this study as soon as they have completed the research survey questionnaire. (See Appendix I – Sample of the Research Survey Questionnaire on page 14) In relation to the principles of confidentiality, the research survey questionnaire was designed without asking for the research survey respondents’ name, postal address, e-mail address and other personal information that can indirectly reveal the research survey respondents’ personality to the public (National Research Councile of the National Academies, 2003, p. 113). This explains why the research survey questionnaire was designed without asking the demographic profile of the research survey respondents. To ensure that the researcher will be able to gather relevant information, it is important to design the research survey questionnaire based on the main purpose and research objectives of this study. 5. Limitations This study focuses on evaluating the mediating role of transformational leadership on organizational learning and performance particularly in the case of ABC Transport PLC in Nigeria. For this reason, the research findings that will be presented in this study may not necessarily be applicable to the case of other companies. The proposed research method combines the use of qualitative and quantitative research survey. Not all research survey respondents may be willing to write lengthy explanation to each of the open-ended questions asked in the research survey questionnaire. Therefore, even though the use of a research survey questionnaire enables the researcher to gather subjective response from each of the research survey respondents, the use of this technique may not be as effective as compared to a research interview. The target research survey respondents for this study include 100 research survey respondents who regularly use the bus transportation services offered by ABC Transport. Although 100 research survey respondents is considered to be the minimum requirement when it comes to the computation of statistics, inviting more research survey respondents is more effective when it comes to minimizing the risks for statistical errors. 6. Contribution Up to the present time, there is no single study that focuses the mediating role of organizational learning and transformational leadership on business performance. In the process of completing this study, the research findings that will be gathered from the research survey questionnaire will be useful in terms of giving the readers an idea as to whether or not transformational leadership can act as a mediator between organizational learning and business performance. Furthermore, completion of this study can be advantageous on the part of ABC Transport’s top management. Aside from giving them an idea on how organizational learning can help improve the service quality offered by ABC Transport, this study will also discuss how the use of transformational leadership can help increase the long-term business performance of this company. Appendix I – Sample of the Research Survey Questionnaire To all research survey participants, this study aims to evaluate the mediating role of transformational leadership on ABC Transport Company’s organizational learning and business performance. In the process of completing the research survey questionnaire, the research survey respondents have automatically given their consent to participate voluntarily in this study. Please note that your personal identity will be kept confidential throughout the completion of this study. Thank you. 1. How often do you ride the bus of ABC Transport? ___ Three times a day; ___ Three times a month; ___ Only on holidays; ___ Twice a day; ___ Twice a month; ___ Others (please state) ___ Once a day; ___ Once a month; __________________. ___ Three times a week; ___ Three times a year; ___ Twice a week; ___ Twice a year; ___ Once a week; ___ Once a year; 2. Are you satisfied with the bus service offered by ABC Transport? ___ Yes ___ No 3. Have you ever experienced bus travel delays with ABC Transport? ___ Yes ___ No; If yes, kindly explain what happened. _____________________ _______________________________________________________________________ _______________________________________________________________________ 4. Have you ever experienced or heard news whereby ABC Transport was involved in a road accident? ___ Yes ___ No; If yes, kindly explain what happened. _____________________ _______________________________________________________________________ _______________________________________________________________________ 5. Have you ever experienced losing a love one(s) because of a road accident caused by ABC Transport? ___ Yes ___ No; If yes, kindly explain what happened. _____________________ _______________________________________________________________________ _______________________________________________________________________ Note: Organizational learning is defined as “a continuous process of creating, acquiring, and transferring knowledge accompanied by a modification of behaviour to reflect new knowledge and insight” (Neilson, 1997, p. 2). 6. Do you think that the process of promoting organizational learning can help improve the service quality offered by ABC Transport? ___ Yes ___ No; Why? _______________________________________________ _______________________________________________________________________ _______________________________________________________________________ Note: As stated by Neider and Schriesheim (2002, p. 27), “transformational leadership involves an underlying influence process that motivates followers by encouraging them to transcend their self-interests for the sake of the organization and goal accomplishment”. 7. Do you think that the use of transformational leadership style can positively affect the overall business performance of ABC Transport? ___ Yes ___ No; Why? _______________________________________________ _______________________________________________________________________ _______________________________________________________________________ 8. Do you think that the use of transformational leadership style can act as an in-between the ABC Transport’s ability to promote organizational learning and subsequently improve its overall business performance? ___ Yes ___ No; Why? _______________________________________________ _______________________________________________________________________ _______________________________________________________________________ 9. Do you have any suggestions on how ABC Transport can improve its service quality? _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ 10. Kindly state whether or not you agree or disagree with the following statement: Strongly agree (5) Agree (4) Uncertain (3) Disagree (2) Strongly disagree (1) 1) Organizational learning positively affects ABC Transport’s overall business performance. 2) The use of Transformational leadership style will positively affect ABC Transport’s overall business performance. 3) Transformational leadership mediates ABC Transport’s organizational learning and overall business performance. *** End *** References ABC Transport. (2014a). History. [Online] Available at: http://www.abctransport.com/history.php [Accessed 8 April 2014] ABC Transport. (2014b). ABC Bus Terminals. [Online] Available at: http://www.abctransport.com/bus%20terminals.php [Accessed 8 April 2014].. Alegre, J. and Chiva, R. (2011). Linking Entrepreneurial Orientation and Firm Performance: The Role of Organizational Learning Capability and Innovation Performance. Journal of Small Business Management, 51(4), pp. 491-507. 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Personnel Psychology, 61(4), pp. 793-825. Read More