The Impact of Training and Development On Knowledge Management

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The Impact of Training and Development on Knowledge Management

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Vol-5 Issue-1 2019 IJARIIE-ISSN(O)-2395-4396

The Impact of Training and Development on


Knowledge Management
Mrs.L.D.Victor 1 K.C.D. Kathaluwage 2

1
Senior Lecturer,Department of Management,Faculty of Commerce & Management,Eastern University, Sri Lanka
2
Temporary Assistant Lecturer,Department of Management,Faculty of Commerce & Management,Eastern
University, Sri Lanka

Abstract

This study aims to explain and empirically test the impact of Training and Development on Knowledge Management (KM)
in selected commercial banks in Kandy District. Accordingly, data were collected through open ended questionnaires from
196 employees in 12 Licensed Commercial Banks (LCBs) branches in Kandy District. Hence, quantitative research
approach was used in this study. The research method was descriptive correlative type and it was based on the objective of
the method applied. The stratified sampling method was used to make the sampling frame work of the study. The data were
analysed by using univariate, multivariate analyses to take the descriptive and inferential statistics. The results indicated
that the levels of Training and Development and KM exist in selected commercial banks in Kandy District was high level
and had significant positive impact on KM. The findings of the study provided several important implications for managers
and decision makers of the banks. The study was contributed to the body of knowledge by filling the gaps in the
management literature and by substantiating the findings of previous research while the study generates considerable
theoretical and practical contributions.

Keywords: Training and Development, Knowledge Management, Ability-Motivation-Opportunity (AMO) Theory

I. INTRODUCTION

Nowadays, business environments have become much more complicated due to the rapid development of information and
communication technologies, growing globalization, the acceleration in the rate of technological change, and the need to
share best practices. Thus, in order to survive, the traditional business models must continue to meet the changing business
environment and requires that risen the importance of KM within organizations (Al-Hawary, 2015). As well as, in the
modern economy, knowledge is considered as a power and it provides competitive advantage to organizations. This
competitive advantage is realized through the full utilization of information and data coupled with the harnessing of
people’s skills and ideas as well as their commitments and motivations. The HRM can focus the skills, abilities, talent of
people in the organization, whereas KM focuses existing knowledge in the organization, to create a competitive advantage
for the success of organization. Knowledge creation and dissemination are the human activities and managing humans is a
HRM activities. Thus, people are the basis of knowledge management system (KMS), because it is due to the fact that they
are the ones who run processes connected with identification, creation, obtaining, purifying, protecting and transferring the
knowledge (Lendzion, 2015).

KM is a common concept in management theory. It has been practiced in many fields such as business, human resource
management, engineering, medicine and science (Al-Hawary, 2015). Accordingly, this study was attempted to examine the
KM implementation in banking sector in Sri Lanka. Financial sector of Sri Lanka, most importantly the banking sector, has
been undergoing massive changes over the years. Some of the critical factors, which influenced changes in the banking
sector, include large scale competition for customer’s deposits, loans, increasing customer demands, shuddering profit
limits, and the need to keep up with the new financial technologies that will ease banking operations. In order to adapt these
changes, needs of the KM is arisen in the banks. Rashed (2016) stressed that effective KM implementation has provided
various interrelated and multifaceted benefits to the banks, rendering to utilize its resources efficiently and effectively such

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as knowledge activities performance, process performance, employee performance, market performance, and
organizational performance that converted to organizational performance by affecting each other directly and indirectly in
banks. Hence, they have to develop knowledge workers and provide opportunities to learn.

Knowledge is dependent on people and that HRM issues, such as recruitment and selection, education and development,
performance management, pay and reward, as well as the creation of a learning culture are vital for managing knowledge
within firms (AI-Hawary, 2015). In some previous studies shows that HRM plays a crucial role in KM as a success factor
of KM (AI-Hawary, 2015; Jimenez & Valle, 2012). In recent years, KM is one of the emerging fields in the research world
but few studies have explored the impact of HRM practices on the processes comprising KM. Most of previous researches
on the effect of HRM on KM adopt a partial approach. Some of them have focused on one particular HRM practice (Foss,
Minbaeva, Pedersen & Reinholt, 2009; Ozbebek & Kilicarslan, 2011; Yin, 2016) or one specific KM process, mainly
knowledge sharing (Cabrera & Cabrera, 2005; Foss et al., 2009; Fong, Ooi, TanLee & Chong, 2011; Yin, 2016; Pillai,
2016), without a complete vision of the issue. And also, KM has gained a lot of attention in the developed world but has
attracted a little attention of researchers in Sri Lanka. Out of this few attentions, several studies have been carried out to
identify the KM with any other concepts in management but little attention in Training and Development as a successful
factor of KM in Sri Lankan context. Thus, in order to fulfill this research gap, this study attempts to examine the impact of
Training and Development on KM in selected commercial banks in Kandy District. So this study came with objective to
identify whether there is any impact of Training and Development on KM in selected commercial banks in Kandy District.

The remaining sections of this empirical paper are arranged in the following manner. The conceptualization model of the
research is presented in section II. The previous work in section III discusses the literature review of Training and
Development and KM, theory application and hypothesis formulation. The research methodology is discussed in section
IV, including detailed information on the measures, sample, data gathering, reliability of the survey instrument and analysis
performed in this study; this is followed by a presentation of the results discussed in section V. The section VI conclude the
findings and future research are provided in section VII.

II. SYSTEM MODEL

The primary aim of this study was to identify whether there is any impact of Training and Development on KM in selected
commercial banks in Kandy District. According to empirical research gap exists in literature in relation to impact of
Training and Development on KM, there was no complete research model to identify the impact of Training and
Development on KM with a complete vision of the issue. Hence, the conceptual model of the study was developed by
researcher based on proposed models of these two concepts, empirical findings which were provided by various authors
and theoretical perspectives. Accordingly, the conceptual model of this study was derived from the HRM practices model
proposed by Usrof and Elmorsey (2016) and the KM model proposed by Hasani and Sheikhesmaeili (2016) in accordance
to the empirical findings and AMO theory.

Training and Knowledge


Development Management
Knowledge
Creation

Knowledge
Acquisition

Knowledge
Storage

Knowledge
Sharing

Fig. 2.1 Conceptual Model

[Sources: Adapted from Usrof & Elmorsey, 2016; Hasani & Sheikhesmaeili, 2016]

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According to this model this study examine impact of training and development and knowledge creation, acquisition,
storage, sharing and application as five dimensions of KM. The next section discusses various definitions and explanations
relating to these two concepts (Training and Development and KM) and the existing relationship of these two concepts
which were provided by previous authors to attain comprehensive knowledge to execute this.

III. PREVIOUS WORK


Knowledge Management (KM)

Many researchers have provided many explanations in relation to KM but no universally accepted definition of KM exists,
as different perspectives or schools of KM can yield different dimensions and meaning (AI-Hawary, 2015). Armstrong
(2006) defined KM as any process or practice of creating, acquiring, capturing, sharing, and using knowledge, wherever it
resides, to enhance learning and performance in organizations. KM is comprised of the processes of identification,
capturing, sharing, disseminating, application, and storing of knowledge (Allameh, Zare & Davoodi, 2011). Ravanpykar,
Fyzi and Pashazadh, (2014) defined KM as the process that is applied by organization combined by organizational learning
and producing and distributing knowledge in order to build their organizational and collective knowledge and use it. Based
on this explanations and definitions KM can be defined as any process or practice of creating, acquiring, storing, sharing,
and using knowledge, wherever it resides to enhance learning and performance in organizations.

Table 1. Dimensions of Knowledge Management


No. Dimensions Related Research Studies
of KM

1 Knowledge Ahmadi, Daraei, Khodaie &


Creation Salamzadeh, 2012; Bourini et al.,
2013; Ravanpykar et al., 2014;
Hasani & Sheikhesmaeili, 2016

2 Knowledge Ahmadi et al., 2012; Bourini et al.,


Acquisition 2013; Obeidat, Masa’deh, &
Abdallah, 2014; Ravanpykar et al.,
2014; Al- Hawary, 2015; Hasani
& Sheikhesmaeili, 2016

3 Knowledge Ahmadi et al., 2012; Bourini et al.,


Storage 2011; Obeidat et al., 2014;
Ravanpykar et al., 2014; Al-
Hawary, 2015; Hasani &
Sheikhesmaeili, 2016

4 Knowledge Ahmadi et al., 2012; Bourini et al.,


Sharing 2013; Obeidat et al., 2014;
Ravanpykar et al., 2014; Al-
Hawary, 2015; Hasani &
Sheikhesmaeili, 2016

5 Knowledge Ahmadi et al., 2012; Bourini et al.,


Application 2013; Ravanpykar et al., 2014; Al-
Hawary, 2015; Hasani &
Sheikhesmaeili, 2016

[Source: Developed for the Research Purpose]

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The dimensions of KM are defined by previous authors as follows,

Knowledge creation refers to the extent to which individuals engage in activities that creates new knowledge (Ahmadi et
al., 2012).

Knowledge acquisition refers to the extent to which individuals engage in activities that captures their knowledge (Ahmadi
et al., 2012).

Knowledge sharing refers to the extent to which individuals engage in activities that share their knowledge with others
(Ahmadi et al., 2012).

Knowledge storage refers to the identification and codification of existing knowledge and know-how into organizational
memory (Shongwe, 2016).

Knowledge application refers to the extent to which individuals engage in activities by apply their knowledge to which
they accomplish their work (Ahmadi et al., 2012).

Human Resource Management (HRM) Practices

HRM plays a crucial role in management and business in the world due to its potential to affect a range of organizationally
and individually desired outcomes. Hence, HRM has been an important theme in management and business research for the
past few decades. Many previous authors have defined HRM as the effective and efficient use of people in achieving the
organization’s strategic business objectives. HRM is the efficient and effective utilization of HR in order to achieve goals
of an organization and it is about managing people at work, being the human side of business administration having
policies, procedures, rules and systems influencing employees of the organization (Opatha, 2009). Indumathi (2016),
defined HRM as the process of acquiring, developing, maintaining and keeping relationships of human beings of an
organization to achieve its core purpose.

According to the above mentioned definitions and explanations in relation to HRM, HRM refers to many different activities
dealing with the people side of the organization. Noe, Hollenbeck, Gerthart and Wrighy (2008) said that HRM refers to the
policies, practices and systems that influence employees’ behaviour, attitudes and performance; HR needs (HR Planning),
attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs
and preparing them for the future (training and development), rewarding employees (compensation), evaluating their
performance (performance management) and creating a positive work environment (employee relations). Taking a different
approach, some researchers have drawn upon the Ability-Motivation-Opportunity (AMO) model of HRM and suggested
that HRM outcome is a function of three essential components: ability, motivation, and opportunity to perform (Gamage,
2016). The aim of this study is to identify the impact of HRM practices on KM. According to that, this study attempts to
use AMO theory to identify the key HRM areas that will have an impact on KM outcomes.

Ability-Motivation-Opportunity (AMO) Model

AMO theory is one of the most commonly used conceptualizations of the impact of HRM practices on KM in empirical
studies (Figueiredo et al., 2016; Jimenez-Jimenez & Sanz-Valle, 2012). Gamage (2016) suggested that HRM practices can
be conceptualized as falling into one of three primary dimensions: skill-enhancing HRM practices, motivation-enhancing
HRM practices, and opportunity-enhancing HRM practices. According to the AMO theory, the researcher considered the
recruitment and selection and training and development practices are as skill enhancing HRM practices (ability),
performance appraisal and compensation and reward practices are as motivation enhancing HRM practices and employee
empowerment as opportunity enhancing HRM practices.

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Table 2. Dimensions of Training and Development

No. Dimensions Related Research Studies

1 Training and Munjuri, 2011; Obeidat et al.,


Development 2014; Rana, 2015; Al-Hawary,
2015; Usrof & Elmorsey, 2016;
Indumathi, 2016

[Source: Developed for the Research Purpose]

The dimensions of training and development is defined by previous authors as follows,

Training is a learning process in which employees acquire knowledge, skills, experience and attitudes in order to perform
their job better for the achievements of their organizational goals whereas development is a continuous process that enables
people to progress from a present state of understanding and capability to a future state in which higher-level skills,
knowledge and competencies are required (Boadu, Dwomo-Fokuo, Boakye & Kwaning, 2014).

The Relationship between Human Resource Management Practices and Knowledge Management

Many previous professionals or scholars have attempted to identify the relationship between HRM practices and KM. The
following Table 3 shows the summary of previous related research studies which were published by various authors in the
world.

Table 3 the Summary of Previous Research Studies

Author Findings of Empirical Studies


Findings posit that the successful
deployment of knowledge management
Choy & Suk
program depends on eleven critical
(2005)
enablers including employee training.

Findings indicate that knowledge


sharing is positively influenced by
recruitment and selection, training and
Fong et al. development, and performance
(2011) appraisal. Nevertheless, compensation
had no significant association with
knowledge sharing.

Findings show that employee


Ozbebek & empowerment positively correlates with
Kilicarslan employee’s sharing of knowledge
(2011) behaviour.

Jimenez- Findings indicate that recruitment and


Jimenez & selection, training and performance

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Sanz-Valle appraisal are key practices for enhancing


(2013) knowledge acquisition and knowledge
distribution as well as compensation is
crucial for knowledge distribution. They
also note that training and
compensations are the HRM practices
affecting knowledge storing, but their
findings show that relationship between
compensation and knowledge storing
and relationship between compensation
and knowledge acquisition with negative
sign.
Findings show that there is no any effect
of HRM practices on KM process
(acquisition, distribution, interpretation
Obeidat et al. and organizational memory). HRM
(2014) practices include recruitment and
selection, training and development,
performance management, compensation
and reward and team work.
There is a significant relationship
between HRM practices (reward
strategy, career oriented training and
Rana (2015)
recruitment strategy) and KM
(knowledge acquisition, conversion,
application and protection).
The results indicate that recruitment and
selection, training and development,
performance appraisal and compensation
Al- Hawary
and reward showed a positive impact
(2015)
with KM implementation (acquiring,
sharing, storing and applying).

There is a strong correlation between


HRM and KM. HRM dimensions
Nanda (2016) include recruitment and selection,
training and development, performance
management and compensation and

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reward and KM dimensions include all


five dimensions of this study.

Findings indicate that employee


empowerment practices positively
Yin (2016)
influence knowledge transfer.

Findings indicate that employee


Hasani & empowerment positively correlate with
Sheikhesmaeili KM, but their findings further indicate
(2016) that KM predicts the employee
empowerment.
[Source: Developed for the Research Purpose]

Thus, several researchers have reported that training and development have significant positive impacts on KM in a variety
of studies. The following hypotheses are proposed accordingly,

H1: Training and development practices have a significant positive impact on knowledge management.

IV. PROPOSED METHODOLOGY


In this section, discuss measures, sample and data collection as well as the statistical tests used to evaluate the hypothesis.
This study sought to identify impact of Training and development on KM in selected commercial banks in Kandy District.
Hence, Training and development are known as independent variables and KM is identified as dependent variable of this
study.
Independent Variable Dependent Variable
H1
Training & Knowledge
Development Management

Knowledge Creation

Knowledge
Acquisition

Knowledge Storage

Knowledge Sharing

Knowledge
Application

Fig. 2.1 Research Measurement Model


[Source: Developed for the Research Purpose]

For this study the extent of researcher inference with the study is minimal because of it did not affect normal flow of
activities and this study was carried out in a non-contrived environment where things or events occur normally in the
workplace. As well as, the study is cross sectional one in considering time horizon because data are collected in a one

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single time from the respondents. The unit of analysis was the individual employees who are working in the selected
commercial banks in Kandy District. Thus, the researcher looked at the data which are gathered from the employees
individually in banks. For the study purpose, quantitative technique is used because the close types of questionnaires (limit
the answers of the respondents to response options provided on the questionnaire) and hypotheses are used to assess the
impact of Training & Development on KM in selected commercial banks in Kandy District.

The constructs in this study were developed by using measurement scales adopted from prior studies. All constructs were
measured using five-point Likert scales with anchors strongly disagree (= 1) and strongly agree (= 5). All items were
positively worded. The questionnaire consisted of two sections: Section A contained questions aimed at gauging the
respondents’ attitude to research variables. The measures of Training & Development HRM practices were based on the
five dimensions was adopted from previous empirical studies by Al-hawary (2015) for training & development. The
measures of KM were based on the five dimensions was adopted from previous empirical studies by Kangas (2005).
Section B consisted of a list of questions intended to probe the demographic variables of the respondents such as the name
of the bank, designation, gender, age, educational qualification, period of service and salary scale.

All the employees in selected commercial banks in Kandy District were considered as the population of the study. There
are 12 License Commercial Banks (LCBs) are located in Kandy District and those banks are composed with 137 branches
and researcher has failed to reach this all the branches. Hence, out of these all branches, this study limited to collect the
data only from 12 LCBs branches in Kandy town area as one LCB was represented by one branch. For the study purpose,
Slovin’s formula was used to calculate the sample size. A sample of 200 was randomly taken from the population of
selected commercial banks in Kandy District by using stratified random sampling method. However, due to some invalid
questionnaires which were removed from the sample. The total sample size was 196. The research data was collected
through only the questionnaire. In this study Cronbach’s alpha estimate is employed to establish the reliability of scales
used in the questionnaire. Data collected from the respondents through the questionnaire use for the analysis purpose and
are analyzed and evaluated by using univariate and multivariate analysis (multiple regression analysis). The Statistical
Package for Social Science (SPSS 19.0) simplifies the analysis work of this study. The univariate analysis was used to
measure the level of Training & Development and KM exists in selected commercial banks in Kandy District and multiple
regression analysis was made to determine the impact of Training & Development on KM exists in selected commercial
banks in Kandy District.

V. SIMULATION/EXPERIMENTAL RESULTS
The results of Cronbach’s alpha test and descriptive statistics of mean are shown in following Table 4. The total alpha
value of Training & Development was found 0.802 and the total alpha value of KM was found 0.772. As the Cronbach’s
alpha value of used scale was over 0.70, so researcher can say that scales have internal consistency that means they are
reliable.

Table 4. Cronbach’s alpha test and descriptive statistics


Variabl Dimension Mean Cronbach’s
e X̅ Alpha Value
Training and 4.32 0.80
Development 2
Knowledge 4.53 0.78
Creation 4
Knowledge Management

Knowledge 4.63 0.83


Acquisition 3
Knowledge 4.52 0.81 0.772
Storage 5
Knowledge 4.54 0.90
Sharing 6
Knowledge 4.57 0.94

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Application 9

[Source: Survey Data]

The mean value of training and development fall between the range of 3.5<X̅≤.5.0 (X̅=4.34; X̅=4.39; X̅=4. 35; X̅=4.45;
X̅=4.35 respectively). Hence, it indicates that the level of training and development practices in selected commercial banks
in Kandy District were high level. As well as, the mean values of each dimensions of KM in terms of knowledge creation,
knowledge acquisition, knowledge storage, knowledge sharing and knowledge application fall between the range of
3.5<X̅≤.5.0 (X̅=4.53; X̅=4.63, X̅=4.52; X̅=4.54; X̅=4.57respectively). Accordingly, this results indicates that the levels of
knowledge creation, knowledge acquisition, knowledge storage, knowledge sharing and knowledge application exist in
selected commercial banks in Kandy District were high level.

Multiple regression analysis was employed to test the hypotheses. It is a useful technique that can be used to analyze the
relationship between a single dependent variable and several independent variables (Al-Hawary, 2015).

Table 5 Model Summary of Multiple Regression Analysis


Model R R2 Adjusted F p-
2
R value/
sig.

1 0.717 0.514 0.501 40.202 0.000

[Source: Survey Data]

In this model, KM acts as the dependent variable and Training & Development act as the independent variables. From the
results as shown in Table 5, the regression model was statistically significant (F=40.202; R 2=0.514; P=0.000). The
proposed model was adequate as the F-statistic (F=40.202) were significant at the 5% level (p<0.05). The R 2 is 0.514,
which means that 51.4% of the variation in KM can be explained by training and development. This indicates that the
overall model was reasonable fit and there was a good statistically association between Training & Development and KM.
Accordingly, the regression results between Training & Development and KM were shown in Table 6.

Table 6 Regression Results between Training & Development and Knowledge Management
Independent β- t- p- Remark (
Variables value value valu Hypothesis
e/ is
sig. supported
or not)
(Constant) 1.694 7.66 0.00
0 0

Training and 0.127 3.90 0.00 Supported


H
1 Development 6 0

[Source: Survey Data]

Regression results in Table 6 indicates that, training and development (p<0.05; β=0. 127), had statistically significant
positive impact on KM.

Extensive formal training, training in team building or cross-based training, multi skills training, need based training,
formalized orientation and socialization programmes are very useful to increase employees’ abilities, also to increase
interactions between employees that result in a shared language and closer interpersonal ties (social capital) that positively
affects knowledge flows within organizations (Cabrera & Cabrera, 2005; Al- Hawary, 2015). Also, availability of training

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in an organization is crucial to develop employees’ learning capabilities and it provides a common language and shared
vision which foster the transfer and dissemination of individual knowledge within the firm.

VI. CONCLUSION
This study came with objective to identify whether there is any impact of Training & Development on KM in selected
commercial banks in Kandy District. According to findings of the study, training and development had significant positive
impact on KM in selected commercial banks in Kandy District. These results support to contribute to fill this empirical
research gap by considering training and development which predicts the KM. Ultimately, the theoretical implication of the
study contributes to the body of knowledge by filling the gaps in the management literature and by substantiating the
findings of previous research while the study generates considerable theoretical and practical contributions. The results of
this study also provided several important implications for mangers and decision makers of selected commercial banks in
Kandy District to make the effective KMS and design the Training & Development. HRM practices should be carefully
designed to make effective KM system in the banks. The banks should give free time to knowledge workers to work on
knowledge-building projects, going to conferences or spending time on interesting projects and should provide appropriate
training and development programs to increase the level of knowledge and expertise of employees.

VII. FUTURE SCOPES


Future research also attempt to achieve a larger random sample to determine whether general results apply to a larger
population sample size. So that findings can be generalized across the whole population of the country. In future, the
similar research may be conducted in different sectors (other manufacturing and service sector) of Sri Lanka. That would
further help to find new and novel findings. As well as in future expect to survey HRM key dimensions as several other
HRM practices (e.g. job design, teamwork, employee retention and career management etc.) could probably have an effect
on KM and survey impact of other critical factors on KM such as information technology, culture and leadership can be
examined as a success factors for KM.

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