Impact of Technological Advancement On E
Impact of Technological Advancement On E
Impact of Technological Advancement On E
ISSN 2162-3058
2014, Vol. 4, No. 1
Abstract
Purpose: The purpose of this study is to check the impact of technological advancement on
employee performance in banking sector.
Methodology: This paper was completed with the help of extensive literature on
technological advancement and employee performance available on the databases and
websites. Primary data has been used in this paper to check the impact of technological
advancement on employee performance. SPSS 16 software package is used to analyze the
employee responses and statistical technique Regression analysis is used to check the impact
of technological advancement on employee performance.
Findings: Total of 140 questionnaires has been distributed among different banks and out of
which 100 were get completed and returned. After analyzing the data very efficiently, we find
that technological advancement has significant impact on motivation and training of
employees. Motivation has significant impact on employee performance but training has no
significant impact on employee performance. Moreover as the concerned for technological
advancement and employee performance, there is significant relationship among them.
Research limitations / Implications: More research will be require on this theory “impact of
technological advancement on employee performance in banking sector”
Type: Quantitative Paper
Key Words: Technology advancement, employee performance, banks
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1. Introduction
In this modern world of repaid high-technology changes, technological advancement will
continue to accelerate the future. Technological advancement change the organizational
policies and strategies (Hampel and Martinsons, 2009).In any organization, most of
challenges are generated by competition, advanced technology, enhancing employee
efficiency and repaid growth, new leadership and management (Madsen et al., 2005).Most of
the research has shown that employee attitude and behaviours need to be develop for
successful organizational performance (Bernerth, 2004).
Most of the firms involved the employee in management, working for technological
advancement implementation. Firms invest on employees training to improve the employee
knowledge and skills and development of employees prior to the introduction of new
technology. You must ensure that workers ' union to consider the effects of technological
advancement on their own physiology. It is clear that the staff who worked under both the old
and new systems have expressed less positive attitudes about their jobs , and these attitudes
circulated to the organization because it has become less committed and more likely to leave.
So firms must motivate the employees to adopt the new technology and also organization
gives incentive to employee for better performance (Dauda & Akingbade, 2011).
Moreover organizations purchase the advance technological tool for improving the
employee’s performance, facilitated job-tasks, improved communication, increased
efficiencies, and higher-levels of effectiveness in work management. The introduction of
advance technology has changed the way of performing job. Technological advancement
improved the employee performance as well as less the employee working effort and task
completion time.
New technology is not only essential for company or government, it is also important for
nation. Companies cannot run with old technologies. Technology increase human
performance when human or employees use technology for the benefits of the organization
and use with ethical values. Individual person cannot adopt technology easily and on the
other side group of people can adopt technology easily. Computer is a greatest invention; it is
useful only in that case when employees use it for their work. New technology can be used
for both purposes for break or for make purpose. Employee work load reduce through
technological advancement. Number of employees to perform one task is also reduced.
Companies require not much more employees to perform one job. Human effort is also
reduced through technological advancement. Single employee can perform its job without
any hurdle.
Human Resource Management use the advance technologies equipment to check and
evaluate the employees output or performance. Human Resource Management decides to
leverage emerging technologies to drive productivity and the management of human capital
will make the difference between a mediocre HR department and one that is truly a business
partner. Current technology trends that will impact HR are outsourcing, advances in
technology, and a continued focus on measuring the value that HR brings to the organization.
The role of the HR professional has changed fundamentally as a result of technology. The
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core competencies that have developed are mastery of HR technology, strategic contribution,
personal credibility, HR delivery, and business knowledge.
2. Literature Review
2.1. Technological Advancement and Employees Performance
Technological advancement is the process of combining and reorganizing knowledge to
generate new ideas. The development of technology has an impact on firm performance
(Mumford, 2000). Technological advancement comes from internal advancement (Pavitt,
1990), and internal advancement comes from employee capability. So there is a close
relationship between technological advancement and employee performance (Huselid, 1995).
Technologies can only lead to increased productivity or improve performance when
combined with other resources effectively by human resources or when done effectively, and
use technology productively and ethically (Dauda & Akingbade, 2011).
Advancement makes employees more effective and firm more efficient (Lawless and
Anderson, 1996). Technological advancement can improve firm performance as well (Li and
Deng, 1999).
Employee can more rapidly acquire new knowledge and further advancement competencies
through training (Chi et al., 1989). Motivation of the employee has direct influence on
technological advancement (Hennessey and Amabile, 1998).
Employee’s performance is closely linked with technological advancement. Technological
advancement can be managed effectively through employees.
Resource-based theory suggests that a firm’s resources are extremely important for the firm’s
development, and that human capital is a key resource of a firm. The function of this resource
depends on the employees’ ability and enthusiasm, and on efficient human resource
management (Mumford, 2000).
Technological advancement has enormous influence on employee performance (Nohria and
Gulati, 1996). Technological advancement is important factor for influencing the
improvement of performance (Hitt et al., 1997). Most of studies have repeatedly shown a
positive relationship between a firm’s technological advancement and performance, and
concluded that technological advancement is important for employee performance (Foster,
1986).
2.2. Training and Technological Advancement
Training must exist in every organization; training corrects deficiencies known as the time of
employee appointment and enables employees to face arising advancement challenges as well.
Training not only motivate to employees but also working as a catalyst to doing any new task
at work place (Amagada, 2006).
Becker (1964) suggests that employee training allows employee to use the new skills. Firm’s
employee with more advancement knowledge is important resources of the firms and they are
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continually attained new knowledge and skill for development of new technology. Training
can improve the employee knowledge, competencies of advancement. Advancement involves
the production of new ideas and that ideas can be implemented to solve some significant
novel problem (Mumford and Gustafson, 1998). Training results, employees can more rapidly
acquire new knowledge, and can increase their advancement ability (Chi et al., 1989).
Moreover, the people who have broad expertise and knowledge may produce more
technological advancement (Mumford, 2000).
Organizations can improve its employee’s skills and efficiency through training and
development. Research shows that investment on employees in the field of decision making,
teamwork tasks and in problem solving results shows that firm’s outcome level increases. In
some organizations research proves that training is positively correlated with employee
output. Training is not short term process. It is nonstop and systematic process. Organizations
have done employee’s analysis and also asses the need of firm. Then specified training
program is adapted after that analysis. Organization adapts that method of training which is
consistent with employees and as well as fulfil the goals of organization (Singh & Mohanty,
2012).
Training is not only beneficial for employees to enhance their abilities and skills regarding
job but also important for organizations to achieve their goals. A skilful human resource
cannot be copied. Organizations arrange training programs to increase employee’s skills that
are required for doing jobs. One of the main motives of organizations is to produce values
and profit for their shareholders by facilitating their customers by providing unique products
and high quality services to their customers. To achieve competitive edge over competitor it
is necessary for organizations to manage and develop highly skilled workers. For that purpose
organizations arrange different types of training programs for their employees. Training
programs not only fulfil firms desires to achieve their goals but also meets individuals own
desires in the form of money, promotion and being well known in eyes of manager(Sultana,
Irum, Ahmed, & Mehmood, 2012).
Due to global environment firms are encountered with different sort of problems that they
never faced before. More competencies regarding job are required that are essential for
achieving organizations goals. Firms should adopt these changes and equip them with latest
technology and develop their abilities to use latest technology (Farooq & Khan, Impact of
Training and Feedback on Employee Performance, 2011).
Technologies advancement to change the work nature and work task as well so employee
requiring new knowledge and skill to doing the new task effectively. Training is one of
effective strategy to give the new knowledge and skill to employee to doing a job effectively
(Goldstein and Gilliam, 1990).Most recent studies shows that organization face two factor
one is old age workforce second is increasing introduced a new technologies, so training is
very important for further new technology introduction as well, such as web-based operation,
computerized intelligent systems, and other task technologies (Colquitt et al., 2000).
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succeed and providing more clarity about their goals. Improvements in performance and
raising standards are both key components that contribute to an organization’s success and
help us to ensure we have the very best people in the right roles and that they are motivated to
stay (Rudge, 2011).
In this literature motivation is the variable which can affect employee performance in the
organization. Here we have another variable which is motivation and we have to check its
impact on the employee performance whether increase in motivation or low motivation
increases or decreases the performance of the employee in the organization. Impact of
motivation on employee performance this is the aim of this research. There are other
variables also where each of them has great impact on the performance of the employees in
the particular organization in which they are working just like technology, motivation,
management behaviour and working environment. (Khan, 2012)
To influencing employees motivation is very much important to accomplish organization as
individuals predetermine goals. To achieve unmet and specific needs this inner drive and
motivates employees to form the positive behaviour in the organization which have quite
positive impact on the working environment. Acknowledging employees on their efforts and
work while they are on their duties, giving them healthy work environment and according to
their needs building pleasant job design with this little support on behalf of organizations
enables them to achieve their objectives efficiently. In this way performance is increased by
motivation. (Khan, 2012)
Focus on the performance of the organization and employee motivation has been working
in-depth study of the recent times. Organizations are more concerned about how well
motivate their employees to achieve their mission and vision. In the public and private sector
organizations are increasingly aware of employees, motivation, and increase productivity.
Workers inspiration is a policy of a management to increase the effective operation of the
management staff and associations. Motivational staff is quick to respond and they provide
directions to their efforts towards the goals and objectives of the organizations. Motivation
develops a more successful organization, because employees are constantly looking provoked
improved approach to do a job. The staff will do their best work even in severe cases, it is one
of the most stable and greasy staff challenges, which can inspire them to become possible.
(U.S., 2013)
Several greatest challenges for the organization moved downward knowledge from the
accumulation of knowledge, practice it in the past, is a good return path to effective
management practices to dry. Staff is excited hoarding, because knowledge of competitive
advantage, which gave them individuals within their organization. People think that if
knowledge of the organization to provide sources of competitive advantage, it also provides
individuals within an organization's competitive advantage. From the employee's perspective,
companies are seeking them to share that they want to earn positions and financial incentives
and progress they hold. (Milne, 2007)
Learn how to motivate employees is one of the key challenges for managers. Although it is
not directly inspire others, but it is important to know how to influence people's motivation to
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do with employees to determine their own welfare and the overall objectives of the
organization. (Milne, 2007)
The basic assumption motivations include: the ability to get people to act responsibly, the
naturally aspirated learning and understanding things, and the desire to do good work and
entertainment. With evidence-based theory of human motivation, self-determination theory
(SDT) to solve the cognitive, emotional and psychomotor development of a few basic
questions related. Self-awareness, a person's goals and aspirations psychosomatic and
emotional wants, life, personal vitality, cultural and social impact on the environment is to
determine a person's ability to self-specific key issue is the focus of the SDT. Because
motivation assumes a different dimension necessary to consider the motivation and
self-control motivation and performance prediction as motivation related issues. (Ankli &
Palliam, 2012)
All areas of behaviour change as a result of the power has been widely reported effort. Deci
and Ryan (2002) they present self-determination theory (SDT), the theory of personality
maturity and self-motivate behaviour change. SDT is a theory of cognitive evaluation and
assessment, which shows the impact of intrinsic motivation extrinsic motivation. Intrinsic
motivation is personal happiness derived from the activity itself spontaneously. Extrinsic
motivation, in contrast, requires physical or oral reward. Satisfaction with the results of the
activity itself is not a cause but a consequence from the outside to the event. (Ankli & Palliam,
2012)
2.5. Training and employee performance
Training helps to overcome gaps between employees and senior level management. It enables
employee to participate in decision making and provide active output in decision making.
Employee coordination with peer, subordinates and with its senior officers increases after
training. These types of steps create better image in front of those think tanks who are
working for value maximization of organization. Most important for the organization
employee performance increases after training. Organizations which are working around the
globe. These organizations are more concerned about their employees. These type of
organizations launch different type of training programs for value creation into their
employees. Global organizations train their employees in aspect of working field. Training
not only develop employees mental ability but also after training employees can take benefit
physically such as active participation in decision making can release it mental
disturbance(Farooq & Khan, 2011).
Employees performance is also relate with commitment of employees with organization.
High commitment leads to high performance and low commitment leads toward low
commitment. So in simple when employees are so committed with organization we will
determine from that employee’s performance is good. Training improves employee’s
commitment with organization. Commitment can be defined as employees work for
organization for long period of time. Training improves skills of employees that thing insist
organization to improve benefits and pay of employees. Scholars and researchers accept that
training increase commitment of employees with organization but training produce desired
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out comes only in that situation when employees also accept that training program. It means
that training is effective only in that when from both sides cooperation occurred. Employees
enter in training program with lot of expectations when these expectations are not fulfilled; it
comes in result of employee’s low commitment and high turnover. Because in case of low
commitment whenever they got opportunity they will prefer to leave organization (BRUM,
2007).
Training has bigger impact on the performance of employees but training is not only single
factor which effect the performance of employees other factors are also here which effect
performance of employees. Other factors are employee skills, employee knowledge,
motivation and reward. Trained employees are more efficient in group work because they are
well known about the expectation of other workers. Employees who take regular training
programs are easily accepting changes in organization. Whenever organization launch
innovative programs they resistance from those employees who do not attend regular training
programs. Trained employees help organization to reduce training cost of other employees.
Because when one employee is full trained, he will be capable to train other untrained
employees in the organization. Training helps the employees to achieve different task of the
organization and vice versa. Training is systematic approach of behaviours that enables
employees to change their behaviours according to the norms and values of the organization
(Jagero & Komba, 2012).
Training is used to fill gap between current performance and desired performance after
training. Training can be given through different methods such as coaching and mentoring,
cooperation between peers. These team works encourage employees to work more for
organization. Training is not only useful for employees but it also valuable for organization. It
develops competitive edge for organization in the market. Training develops in the
employee’s self-efficacy which is helpful for superior performance (Elnaga & Imran, 2013).
3. Theoretical Framework
Motivation
Technological
Employee
advancement
Performance
Training
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3.1. Hypothesis
4. Research Methodology
4.1. Data Collection
The data collect for this study through primary source. Due to lack of time employees are
taken from Bahawalpur Region as the sample research. Firstly employees have been
identified and after the willingness of them, questionnaire has been filled by them and the
required data has been collected. Total of 140 questionnaires have been distribute among
different banks and out of which 100 were get completed and returned. Results are given
below...
5. Results and Discussion
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Coefficient value indicate that one unit increase in technological advancement, it will
increase .398 points of motivation. Its adjusted R Square value is 0.133 which indicates that a
13.3 percent change comes in motivation of employees through technological advancement.
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