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Machine learning Structural Equation Modeling Algorithm to Measure

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DOI: 10.30534/ijatcse/2020/148922020

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 ISSN 2278-3091
VolumeTrends
A.M.Mahaboob Basha et al., International Journal of Advanced 9 No.2, March - Science
in Computer April 202
and 0Engineering, 9(2), March - April 2020, 1873 – 1881
International Journal of Advanced Trends in Computer Science and Engineering
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https://doi.org/10.30534/ijatcse/2020/148922020

Machine learning Structural Equation Modeling Algorithm to

Measure Performance

Dr.A.M.Mahaboob Basha1, Dr.P.Chenchu Reddy2, Dr.G.Radha Krishna Murthy3, B.Ankaiah4,

U.Dadakalandar5
1
Department of Management Studies, Audisankara College of Engineering & Technology, Gudur,
[email protected]
2
Department of Management Studies, Vikrama Simhapuri University, Nellore, India. [email protected]
3
H&S Department, Sri Venkateswara College of Engineering, Nellore, India. [email protected]
4
Department of Management Studies, Yogi Vemana University, Kadapa, India. [email protected]
5
Department of Tourism Management, Vikrama Simhapuri University, India. [email protected]

ABSTRACT Key Words: Ethical Dilemma, Ethics, Moderation,

Mediation, Human values, values, etc..
Aim of this paper is to investigate the mediating and
moderating role of employee performance and ethical 1. INTRODUCTION
Dilemma on organizational performance. In contemporary
business practical implementation of ethical values plays a The ethical foundation is essential in every organization for
crucial role. Lacking of ethicality in the implementation of long-run survival. The efficiency and efficacy of the
ethical concepts creates organizational deficiency. The organization will depends on the ethical practices which are
implementation of ethical values can be seen in all areas being followed by the organizations. It is evident from the
like: training and development, performance appraisal, literature that, the organizational performance is being
compensation and career planning which creates employee depends up on various aspects like: appraisal, training,
performance leads to organizational performance. career development, employee compensations are directly
Design/methodology/approach- The current research linked with the organizational performance. In this context,
basically runs with secondary data followed by primarily following of ethical values plays a significant role, it is
data, using structured closed ended questionnaire to collect evident from many literatures that, lacking of ethical values
opinion from various respondents in the study area of while performing many aspects in the organization will
transport sector. The data collected from 200 sample leads to employee dissatisfaction consequently
respondents. The questionnaire validated through pilot organizational performance gradually will decrease. In the
study and loaded factors validated through confirmatory present research researcher is trying to consider ethical
factor analysis and model through goodness of fit index. The values as a moderator which moderates, employee
results of the hierarchical regression of complex mediated performance followed by organizational performance in the
moderation reveal the significant positive relationship organization.
between HRM practices and employee performance leads to
organizational performance. The ethical dilemma interacted 2.REVIEW OF LITERATURE
with employee performance in such a manner that HRM
practices with following ethical values will creates high Author conducted a research work in the area of HRD in
organizational performance as employees fee that, milk industry. The outcome of the research evident that,
organization following organizational code of conduct and personnel development is a continuous process and
ethics, which creates high organizational performance. The management need to come-up with various HRD
present research done on the basis of available literature in development strategies which impact on organizational
India and western context, the research has practical prosperity. The team work, employee-employer relationship,
implications on MNC’s where Human resource will be organizational culture will pays a significant role in the
treated as assets of the organization. The specialty of the process of human resource development in the organization
study is, the outcome of the research can be generalized to [1].have conducted a research study in IT industry, the high
anywhere under any circumstances and situations. The study performance IT industries will be influenced by HRD
will create new insights to the readers which is unknown in practices. In the present study, analyzed the data with the
previous research studies. help of various tools like: ANOVA followed by correlation.
In all aspects the outcome of the research reveals that, HRD
practices plays a significant role for the development of an
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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881
organization [2].Human resource is the important assets of opportunity and organizational performance [14]. The
an organization. In the perspective of H-Manager, the outcome of the research evident that, the late coming to the
personnel in the company need to be treated as important organization may be due to many factors like: employee
asset in the organization. The concern people need to performance appraisal, employee compensation and
concentrate on skill enhancement, job-satisfaction, working conditions of the institution. The late coming to the
appraising the performance of employees which makes to organization surely will impact on the productivity of the
run our organization towards to reach the mission of the organization [15].The outcome of the research reveals that
organization [3].HRD practices will pay a significant role in there are various factors which impact on the performance of
overall in overall development of the organization. The employees which have shown 96.77% of accuracy. It is also
technology driven concepts makes an organization more proved that, the number of instances which have given the
effective in the implementation process of human resource positive results also. The Naïve Base machine learning
development practices [4].done research with the help of algorithm has given accurate results while measuring the
primary data sources in HRD aspects, as per the innovative performance of employees [16].Conducted a research study
HRD practices will impact more on the development of conclude that, enhancing employee creativity is essential
human resource management practices in banking industry. which will happen through knowledge management process
It has been found that convergence of practices of new and in the organization. The knowledge management
innovative HR areas will benefit the banks to become more department will store the tacit knowledge of employees in
competitive [5].Human resource development practices are the organization [17].
essential to sharpen their capabilities which impact on
organizational productivity and development. It is mainly
impact on to improve individual efficiency through training
and performance appraisal.[6].
The strategic change in the organizational development can
bring through effective HRM practices and also witnessed
that, the implementation of IT practices in HR plays a
significant role which will impact on organizational
productivity [7].Conducted a research study, the outcome of
the research revealed that, there are certain HRM practices
like: training, compensation, performance appraisal,
staffing, employee grievances and empowerment have
shown significant positive relationship with the
organizational performance [8].Claimed that, the high
involvement of HRM practices in relationship between
organizational performances in Oman. The high
involvement of HRM practices will show the significant
positive relationship with the organizational performance
[9].Observed HRM practices and their impact on company
performance in Chinese enterprises where they used 465
samples, with (6) practices, among these, employment Figure1: Conceptual Model: Organizational Performance
security, service performance and job description will (Vs) Ethical values
enhance employee contributions to the development of
organization.[10].the present study shows that, the ethical 3.DATA ANALYSIS AND RESULTS
dilemma will moderate the relationship among various
factors (Training, performance, career, compensation and Training and Development: Training and development
employee performance) on organizational performance [11]. will enhance the capabilities of individuals, which impact on
Argued that, training and development will enhance ability, organizational performance. Training plays a significant
skills and knowledge which facilitate to drive the role for taking an organization in forward direction towards
organization towards attainment of organizational goals. organizational attainments. In fact, employee performance
Compensation refers to economic payments and monitory is strongly associated with the training facilities provided by
incentives provided to the employees [12]. Performance the organization. An hypothesis was developed based on the
appraisal pays a countless, significant role for prosperity of model was
the organization. However, it is also observed that, H1: There is a significant positive relationship between
performance appraisal is seeing as continuous process employee training and employee performance with respect
[13].performance appraisal is a key to provide incentive to to organizational performance.
the talented personnel to be satisfied with the organization. Performance Appraisal: There should be ethical
Previous research studies witnessed that, there is a performance appraisal in the organization. Ethical
significant positive relationship between promotion performance appraisal makes an employee more committed
and dedicated towards organizational accomplishments.
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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881
There should not be any halo effect or leniency effect on H7: Ethical Dilemma moderates the relationship between
performance appraisal. Now days in the corporate culture, employee compensation and organizational performance in
the ethicality is lacking while appraising the performance of such that at following Ethicality in employee compensation
an employee. In fact, the employee performance is strongly is associated with higher level of organizational
associated with the organizational performance. Based on performance.
from the above concept, an hypothesis was developed: H8: Ethical Dilemma moderates the relationship between
H2: There is a significant positive relationship between employee career development and organizational
appraisal and performance with respect to organizational performance in such that at following Ethicality in employee
performance. career development is associated with higher level of
Compensation: The compensation, what we pay to the organizational performance
employee plays a significant role, compensation has to be
paid on the basis of norms of the industry. But, in the Table1: Mean-Standard Deviation- Correlation Matrix
corporate world, it is a very big question that, whether Factors M SD OP ED TD EJS PA EC
organizations are paying compensation as per the norms or
OP 4.2 .610 1
not. Most of the employees are getting dissatisfied regarding
pay received from the organization. Based on this an ED 4.0 .742 .297** 1
hypothesis was developed ** .362*
TD 3.8 .966 .294 * 1
H3:There is a significant positive relationship between
.300*
appraisal and performance with respect to organizational EJS 4.0 .891 .256** * .54* 1
performance. PA 3.9 .733 .047 .097 * .172
.253** 1
**
Career Planning and Development: Employee career * *
.387 .24
development concepts are essential for every organization. EC 4.1 .831 .753** * * .229** .045 1
Every organization should pan for employee career Confirmatory Factor Analysis:-
development programs for their future development. It is The training and development factor contains four
lacking very much in now a days. Hypothesis was developed indicators with 0.863 reliability[19] followed by
based on the evidenced\s drawn from the analysis. standardized loadings are satisfied the standard
H4: There is a significant positive relationship between measurement of reliability Nunnally [18] has given an
career development and employee performance with respect optimum value of factors loadings that “trainer
to organizational performance. commitment(0.706)”, “trainer communication (0.855)”,
Ethical Dilemma as a Moderator “trainer approach towards employees (0.886)”, “treatment
The ethical dilemma interact with the training and (0.686)”. The average variance extracted (AVE) value is
development, where the institution follows ethical values 0.6213. The discriminant validity measurement is
while conducting training programs to the employees leads 0.778.The performance appraisal factor contains four
to high employee job satisfaction followed by high indicators with 0.806 reliability followed by standardized
organizational performance. In the same manner, ethical loadings "leniency in judgment (0.665)", " differ evaluation
dilemma interact with the performance appraisal in such a (0.807)", " personal prejudice (0.797)", " uniform evaluation
manner, that the good ethical performance appraisal criteria (0.591)". The average variance extracted (AVE)
practices will enhance the employee job satisfaction value is 0.5195. the discriminant validity measurement is
followed by high organizational performance can be 0.721.The organizational performance factor contains four
expected. In the same manner, ethical dilemma interacts indicators with 0.962 reliability followed by standardized
with employee compensation, where ethical compensation loadings are “good working conditions (0.943)", "employee
will create high employee job satisfaction followed by high performance (0.965)", " employee satisfaction (0.934)", "
organizational performance. At last, even the career productivity (0.873)". The average variance extracted
development programs also plays a significant role in such a (AVE) value is 0.8637. The discriminant validity
manner that, the better practices of employee career measurement is 0.929. The career planning and
development programs will enhance employee job development factor contains four indicators with 0.804
satisfaction followed by organizational performance. reliability followed by standardized loadings are "counseling
H5: Ethical Dilemma moderates the relationship between for future development (0.741)", "taking monitory care for
Training and organizational performance in such that at future. (0.899)"," advanced skill enhancement (0.743)", "
following Ethicality in Training is associated with higher creating ladders for future (0.461)". The average variance
level of organizational performance. extracted (AVE) value is 0.5305. the discriminant validity
H6: Ethical Dilemma moderates the relationship between measurement is 0.728.The ethical dilemma factor contains
employee Performance appraisal and organizational four indicators with 0.844 reliability followed by
performance in such that at following Ethicality in standardized loadings are " organisational ethics (0.68)", "
Performance appraisal is associated with higher level of code of conduct (0.791)"," employee aspects (0.875)","
organizational performance. relational aspects (0.691)". The average variance extracted

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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881
(AVE) value is 0.5828. The discriminant validity squared correlation between the variables. Comparative fit
measurement is 0.763.The employee compensations factor index [CFI] = .945; TLI = .936; GFI = .907, AGFI=.882.
contains four indicators with 0.901 reliability followed by The CFI for the six-factor model proves 0.90 and the
standardized loadings are "pay in regular intervals (0.788)", RMSEA was 0.060. RMSEA of less than 0.08, in general,
“inequality in payment (0.888)", " inequality in payment as provides a good fit for the data which includes a model [21].
per norms (0.885)", "pay as per performance (0.783)". The The comparative fit index (CFI>0.90) gives good fit of the
average variance extracted (AVE) value is 0.2985 and the model [22]. This goodness-of statistics for the six-factor
discriminant validity measurement is 0.546. model renders evidence of construct distinctiveness for
Confirmatory Factor Analysis:-The above table elucidates training and development, performance appraisal, employee
the confirmatory factor analysis (CFA) outcomes. The compensation, ethical dilemma, Organizational
sex-factor model fitted the data fine (chi-square= 729.605; performance and career planning and development. The
df = 237 have shown well [20] the [RMSEA] =0.060; RMR AGFI was 0.882, the recommended criteria value is 0.80
= .031; In fact, to test the validity of discriminant analysis, [23]. The variance-extracted for training and development
the famous authors [24] and [25] suggested the techniques to was 0.308 and performance appraisal 0.511 and career
conduct the analysis. In this study, the variance-extracted planning and development 0.312, employee compensation
observed for all the variables exceeded the recommended 0.503 and ethical dilemma 0.301 have shown significant
level of 0.50 Fornell and Larcker and also exceeded the relationship among the variables.

Table 2: Results of Confirmatory Factor Analysis and Measurement Properties

Average
Composi
Standardiz Varianc Variance-extra
te Discriminant Validity
ed e cted estimate
Factors Alpha Reliabil =
loadings (Var(εi =Σ
ity
(λyi ) )) (λ2yi )/((λ2yi )+
(λ2yi )
(Var(εi ))
Performance Appraisal
Trainer Commitment 0.706 0.4984 0.5016
Trainer
Communication 0.855 0.7310 0.2690
Trainer Approach 0.863 0.6213 0.788
towards employees 0.886 0.7850 0.2150
Trainers
Treatment/Behaviour 0.686 0.4706 0.5294
Training and Development
Leniency in judgment 0.665 0.4422 0.5578
Differ Evaluation 0.807 0.6512 0.3488
Personal Prejudice 0.806 0.797 0.6352 0.3648 0.5195 0.721
Uniform Evaluation
Criteria 0.591 0.3493 0.6507
Organizational Performance
Good working
conditions 0.943 0.8892 0.1108
Employee
Performance 0.965 0.9312 0.0688
0.962 0.8637 0.929
Employee
Satisfaction 0.934 0.8724 0.1276
Productivity 0.873 0.7621 0.2379
Career Planning and Development
Counseling for future
development 0.741 0.5491 0.4509
Taking Monitory care
for future 0.899 0.8082 0.1918
Advanced skill 0.804 0.5305 0.728
enhancement 0.743 0.5520 0.4480
Creating ladders for
future 0.461 0.2125 0.7875
Ethical Dilemma
Organizational ethics 0.68 0.4624 0.5376
Code of Conduct 0.791 0.6257 0.3743
0.844 0.5828 0.763
employee aspects 0.875 0.7656 0.2344
Relational aspects 0.691 0.4775 0.5225

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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881

Employee Compensations
Pay in Regular
intervals. 0.788 0.6209 0.3791
Inequality in payment 0.888 0.7885 0.2115
Inequality in payment 0.901 0.2985 0.546
as per norms 0.885 0.7832 0.2168
Pay as per
Performance 0.783 0.6131 0.3869

Hierarchical Regression Analysis:- In the first step (Model

1) all control variables viz., gender, age, educational
qualification, salary and span of service were entered. Among
the control variables age (β = .183, p < .000) followed by
salary (β = .381, p < .000) and services (β = .202, p < .000) are
significant. The remaining Gender, Education qualification
are not significant predictors of employee satisfaction. The
control variables model was significant (F = 65.415, p < .000)
explaining 36% variation at employee satisfaction with the
effect of control variable. In step 2 (Model 2) we entered the
main variables in regression equation. This direct effects
model suggests that the regression coefficients of appraisal (β
= .117, p <.000), training (β = .156, p <.000), compensation
(β = .246, p <.000), career development (β = -.329, p <.000).
Explained 17% extra variance due to main variables. The
model was significant (F = 65.415, p < .000; R2 = .530; ΔF =
44.078, p < .000; ΔR2=.148) and explained 36% of variance
on employee satisfaction due to interaction variables followed
by the total 51% of cumulative variance due to main variable,
which tells that the addition of 15% of variance generated
with the effect of main variable.

Figure 2: Confirmatory Factor Analysis

Table 3: Results of Hierarchical Regression Analysis
Emp.Satisfacti Emp.Satisfacti
Dependent Variable on on
Model 1 Model 2
Independent Control
Main Variable
Variable Variables
.005 -.035
Gender
(.193; .847) (-1.068; .286)
.183*** .155***
Age
(4.667; .000) (4.341; .000)
Education -.057 -.002
Qualification (-1.196; .232) (-.057; .954)
.381*** .250***
Salary
(7.895; .000) (5.629; .000)
Service .202*** .119

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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881

(3.616; .000) (2.424; .016) Table4: Results of Hierarchical Regression Analysis

Performance .111*** Satisfaction
Appraisal (3.704; .000) Satisfacti
Dependent Variable Satisfaction
on
Training & .206 Model 3
Model 1 Model 2
Development (5.284; .000) Independent Control Main Interaction
Career Planning & .269 Variable Variables Variable Variables
development (6.632; .000) -.035 -.056
.007
Employee -.034 Gender (-1.068; (-1.656; .098)
(.193; .847)
.286)
Compensation (-1.019; .309) .189*** .155*** .163
R2 .361 .510 Age (4.667; (4.341; (4.531; .000)
Adjusted R2 .376 .522 .000) .000
Δ R2 (R-Square -.057 -.002 .002
.381 .148 Education
(-1.196; (-.057; (.042; .966)
Change) Qualification
.232) .954)
F-Value 65.415*** 65.415*** .387*** .250*** .251
Δ F-Value 65.415 44.078 Salary (7.895; (5.629; (5.660; .000)
Df (5,563) (9,559) .000) .000)
.200*** .119 .104
***p<.0001, **p<.01, *P<.05; standardized regression β- Service (3.616; (2.424; (2.120; .034)
coefficients are reported; t-values and p-values are in .000) .016)
parentheses .111*** .065
PA (3.704; (.734; .463)
In the first step (Model 1) all control variables viz., gender, .000)
age, educational qualification, salary and span of service were .206*** -.013
TD (5.284; (-.060; .952)
entered. Among the control variables age (β = .189, p < .000) .000)
followed by salary (β = .387, p < .000) and services (β = .200, .269*** .550
p < .000) are significant. The remaining Gender, Education CPD (6.632; (2.568; .010)
qualification are not significant predictors of employee .000)
satisfaction. The control variables model was significant (F = -.034 -.208
EC (-1.019; (-1.750; .081)
69.419, p < .000) explaining 38% variation at employee
.309)
satisfaction with the effect of control variable. In step 2 .066
(Model 2) we entered the main variables in regression PA X ED
(.524; .601)
equation. The control variables age (β = .155, p < .000) CPD X ED
-.428
followed by salary (β = .250, p < .000) and services (β = .199, (-1.312; .190)
p < .000) are significant. The remaining Gender, Education .285
TD X ED
(.912; . .362)
qualification are not significant predictors of employee .250
satisfaction. The control variables model was significant (F = EC X ED
(1.294; .196)
69.960, p < .000) explaining 38% variation at employee R2
.381 .530 .556
satisfaction with the effect of control variable were significant. Adjusted R2 .376 .522 .526
Explained 17% extra variance due to main variables In step 3 Δ R2 .381 .148 .007
(Model 3) we entered the interaction variables in regression 69.960** 49.405***
equation. The control variables age (β = .163, p < .000) F-Value 69.419***
*
followed by salary (β = .251, p < .000) and services (β = .104, Δ F-Value 69.419 44.078 2.015
p < .000) are significant. The remaining Gender, Education Df 5,563 4,559 4,555
qualification are not significant predictors of employee
satisfaction. The model was significant (F = 49.405, p < .000;
***p<.0001, **p<.01, *P<.05; standardized regression β- co
R2 = .536; ΔF = 2.015, p < .000; ΔR2=.007) and explained
efficient are reported; t-values and p-values are in parentheses
38% of variance on employee satisfaction due to interaction
variables followed by the total 53% of cumulative variance
due to main variable and at the end 2% of extra variance can
be seen due to the interaction of ethical dilemma as an
interaction variable. Therefore, expect few hypothesis, certain
hypothesis are showing significant effect due to interaction
variable.

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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881

Graph 1: Interaction plot: OP: PA & ED

Graph 3: Interaction plot: OP: CPD & ED

Graph 2: Interaction plot: OP: TD & ED

Graph 4: Interaction plot: OP: EC & ED

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A.M.Mahaboob Basha et al., International Journal of Advanced Trends in Computer Science and Engineering, 9(2), March - April 2020, 1873 – 1881

4.FINDINGS (Hrd) Practices In India. International Journal of Recent

Scientific Research, Vol.8. , pp2474–22477, 2017
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.000) followed by salary (β = .381, p < .000) and services perception towards HRD practices among select public
(β = .202, p < .000) have shown significant positive sector banks in Puducherry. Indian Journal of Applied
relationship with the employee performance and Research, Vol.6 , pp 249–252, 2016
organizational performance. 5. Teju kujur and Mushtaq Ahmad Shah. Innovative Human
 The control variables model was significant (F = 69.960, Resource Practices In Indian Banks: A Study From HR
p < .000) explaining 38% variation at employee Manager’s Perspective. IVandana Saxena Int. Journal of
satisfaction with the effect of control variable were Engineering Research and Application, Vol.6(3),
significant. Explained 17% extra variance due to main pp.40–48, 2016
variables. Therefore, it is evident from the research that, 6. Gutta Balakrishna and Dr. Sucharitha Devarapu.. Hrd
the control variables (age, income, educational Practices For Developing Growth Rate In Service
qualifications) have shown the significant impact on Sector-India. Anveshana International Journal Research
employee performance. In Regional Studies, Law, Social Sciences, Journalism And
 In the results 2% variance was observed due to the impact Management, Vol.1(3), pp.39–46, 2016.
of interaction variable (Ethical values) while appraising 7. Homera A Durani, Krupa U Trivedi, and Aqsa A Durani.
employee performance followed by organizational Innovative HR Strategic Practices of Indian and
performance. Foreign MNCs. Original Research Journal of
 The moderating variable (Ethical values) has shown the Management Research and Analysis, Vol.2, pp173–176,
significant positive, impact with respect to 2015.
organizational performance and employee performance 8. Trehan, S., and Setia, K. (2014). Human Resource
appraisal. Management Practices and Organizational
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performance and employee career development 9. Bonavia, T., and Marin-Garcia, Integrating human
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