E-Learning and its Impact on Organization Performance

HRM 730: Human Resource Management

E-Learning and its Impact on Organization Performance

Muhammad Fakhri bin Abdul Aziz

Arshad Ayub Graduated Business School, Universiti Teknologi Mara (UiTM)

Abstract

The paper deals with e-learning and its impact on organization performance. This

paper is based on the reviews of the previous paper. The paper is based on the

secondary data. The source of the information has been taken from the previous

articles and journals on the e-learning. The paper focuses only the factors like e-

learning in industry, factors influencing e-learning, individual perceptions, time and

online e-learning and its contributions.

Keywords: e-leaning, technology, learners.

Introduction

To survive in a competitive economy, today’s organizations must develop the

capacity to learn, adapt and change (Patnaik et al., 2013). Holding on to the

traditional ways of operations and strategies can not only render an organization

stagnant, but also make it difficult for its employees to grow and develop. Just as an

individual becomes out of sync and incompetent when he/she stops learning, an

Muhammad Fakhri bin Abdul Aziz 2014397041


organization becomes dysfunctional when it stops adapting to changes in the

environment.

Nowadays, e-learning represents an alternative way of teaching and learning in

today’s knowledge-economy environment, and the number of organizations using

these learning strategies for employee development has progressively increased

(Hill and Wouters, 2010). While definitions of e-learning broadly encompass

computer technology, there exist a number of approaches. For instance, Fry (2001,

p. 234) described e-learning as the “delivery of training and education via networked

interactivity and a range of other knowledge collection and distribution technologies.”

Other researchers have defined e-learning as distance education that uses

computer-based technologies, information communication technologies (ICTs), and

learning management systems (Derouin et al., 2005; Govindasamy, 2001; Lowe and

Holton, 2005). Although there is a range of e-learning definitions, the common

elements are “instructional content or learning experiences delivered or enabled by

electronic technology” (Servage, 2005, p. 306).

According to Pokharel and Choi (2015) Most approaches to learning organizations

assume that organizations are organic entities and have the capacity to learn, and

continuous learning and adaptive characteristics at the levels of individual, group or

organization. He also stated that the concept of a learning organization has received

considerable attention in the fields of organizational change, organizational

development, human resource development and strategic management as the

inducer of better organizational performance while organizational learning is the

process of acquiring, interpreting, distributing and making meaning of information,

while learning organization is the state in which organizations manifest the advanced

stage of organizational development.



Given the increasing reliance and availability of technology in the modern world, and

the potential economies available to organizations, it is vital to understand the factors

that might lead to an increased adoption of e-learning in an organizational context

(Sawang, Newton and Jamieson, 2013). This study aims to e-learning and its impact

on organization performance.

The beginning of the twenty-first century has been accompanied by a number of a

broad revisiting of what our societies could consider as bases for sustained and

more equitable growth (Singh, 2012). Worldwide, this has led to placing knowledge

and information and communication technology (ICT) at the center of national and

regional ambitions (INSEAD, 2009; Liebenau, 2007; Stigliz, 1998). A wide range of

evidence demonstrates beyond doubts that the ICTs have already become the

primary “up-stream” transformational power driving productivity growth (Corrado et

al., 2005; Inklaar et al., 2005; Triplett and Bosworth, 2008), innovation and job

creation in every market (Hollenstein, 2002; Jorgenson, 2001; McGuckin and Van

Ark, 2001; Greenan et al., 2001; Hempell, 2002). Productivity growth and innovation

shepherd competitiveness in the market which is an essential condition for economic

growth and job creation in the twenty-first century. As a result, an increasing number

of nations are competing to establish themselves as world’s leading information

societies (Nelson and Winter, 1982; Neuman, 1991; Mody and Dahlman, 1992;

Negroponte, 1995). In Europe, both Lisbon Strategy 2000[1] and its follow-up

agenda Europe 2020[2], highlights ICTs as a crucial factor of socio-economic growth

and job creation. The Digital Agenda of Europe 2020 focuses on ICTs capability to

reduce energy consumption, reduce carbon emissions, support ageing citizens’ lives,

revolutionizes health services and deliver better public services. Further, it is



expected that ICTs will increasingly drive productivity, sustainable growth, innovation

and employment throughout the European economy in a myriad of ways.

E-learning in rail industry context

E-learning system specifically designed to focus on company-specific initiatives

(Sawang et al., 2013). The e-learning system is used for voluntary training for

various job roles; as such, individuals are free to choose if they participate. The

development and implementation of e-learning across the organization has

necessitated a high expenditure including cost, time, and training. Based on

Sawang, (2013) he stated that from an ecological perspective, this expenditure must

be balanced with satisfaction obtained. Besides, individuals experience satisfaction

(or dissatisfaction) when they engage with the e-learning program. However, in a

corporate e-learning environment, other components besides users’ satisfaction

influence the use of e-learning. Others than that, these components include the

characteristics of the learners, the teachers, content design, and environmental

dimensions. So, the intention to use e-learning is a motivational factor that captures

individuals’ willingness trying to perform a behavior

Factors influencing successful e-learning implementation

A successful implementation of e-learning implementation relates to the individual

characteristic of the learner. It should be noted, however, that theoretically and

practically, an important measure of success of e-learning implementation is the

adoption of e-learning. There are several factors influencing successful e-learning



implementation which is learner characteristic, e-learning characteristic and

organizational support toward e-learning. A key area of research regarding

successful e-learning implementation relates to the individual characteristics of the

learner. A common learner characteristic found across studies relates to learners’

self-efficacy. Based on Newton, Sawang and Jamieson (2013) article, they has cite

from Bandura’s (1982) which is the concept of self-efficacy is derived social learning

theory which explains that efficacy expectations can affect intrinsic motivation for

performing a task. Besides, in an e-learning context, confidence in one’s ability to

complete a task using technology is defined as technological efficacy. According to

self-efficacy theory, individuals evaluate their ability to cope with a new challenge

(i.e. e-learning) and, based on this judgment, individuals initiate and continue with

behavioral strategies to manage the challenge (i.e. e-learning adoption). A second

major factor that can be linked to successful e-learning implementation relates to the

characteristics of e-learning itself. Furthermore, there are two key aspects of e-

learning characteristics involve the authenticity and the complexity of the e-learning.

First, authentic activities are defined as tasks that are relevant and useful to the real

world, and provide learners with a scenario to identify the questions and activities

that are logically related to the scenario. A second e-learning characteristic that is

important to implementation success is complexity. For instance, e-learning that is

perceived as relatively difficult to understand and use can lead to learners’

disengagement and dissatisfaction. Lastly is e-learning has become a high priority

for many public and private sectors.



Individual temporal perceptions

According to Leeds (2014) many studies of time and e-learners, such as those

examined by Barbera and Clara (2012) focus on what individual learners do with

their time resources; however, these studies examine the use of time under the

dominant time perspective in western culture. Thus, each individual learner

distinguishes his or her perception of time as exact or true, whereas time is in fact

variable and, even though time may be perceived as constant, it is actually socially

constructed. Individual learners may be undertaking the same e-learning activities

but as a consequence their perceptions of e-learning will be effected by their

individual perception of time.

Time and online learning

Online learning removes individuals and processes from traditional spaces and

times, so that space and time become “distant” from each other. In its use of

technology, e-learning disrupts the temporal order by altering the ways in which

individuals structure their study patterns. Besides, it highlights a move towards more

“task-oriented” learning where work is focused on the learning task, not the time

taken to carry it out. An e-learning situation where learners were always required to

be punctual, where time was seen as a resource, routine was the norm and learning

tasks were restricted to one or two at a time may be difficult for a polychron.

However, an e-learning situation where an individual has the freedom to set their

own learning schedule, even at the same time as other tasks such as work,

household tasks or eating, would be more conducive to that learner’s concept of time

(Leeds, 2014).



Contributions of e-learning

The ability of an organization to adapt to its changing environment can be enhanced

by more capable employees (Fleming et al., 2014). Besides, organizational culture is

a key foundation for the high-performance work practices, and can be a source of

competitive advantage if appropriately nurtured, learnt and shared. Organizational

culture may influence individual commitment and performance by setting the

practices and values for a positive, meaningful work climate. For instance, study of

high performance organizations report a clear, compelling direction (mission, vision,

and strategy) embraced by employees at all levels, and employee involvement

(teamwork, capability development, and empowerment), positively influence

outcomes measures. This is so because if a society provides a supportive culture for

using some of the techniques, then the creation of high performance organization

may require less managerial effort, than otherwise (Gupta, 2011). Furthermore, the

employees are more likely to engage in the technology-based forms of professional

development when their organization demonstrates its commitment to embracing

and supporting the use of technology. In addition, organizations can facilitate this

tendency toward a self-developed workforce when hiring new employees by

encouraging the selection of prospective employees who demonstrate more potential

for involvement in various forms of technology (Artis et al., 2014).



Organization performance

In a high performance work organization, the basic premise is to create “an internal

environment that supports customer needs and expectations”. According to Choi,

Moon and Ko (2013) although organizations have codes of ethics or business ethics

committees, these formal rules or systems cannot encourage employees to behave

ethically if the employees do not have a shared perception that their organization is

ethical. Therefore, organizations should pay much attention to fostering the

employees’ perceptions of the organization’s ethical climate, concurrently with

establishing a set of formal ethical systems (Schminke et al., 2007; Weeks et al.,

2004). As the importance of ethical climate as a source of competitive advantage

has increased, many previous studies have assumed that an organization’s ethical

climate would lead to higher organizational performance.

Many learning styles have been developed to allow for learners to be categorised

into a specific learner type. This learner type can then be used to provide the learner

with suitable learning material thus possibly enhancing their overall potential for

learning (Peter and Mohammad Dastbaz, 2010). The only way for organizations to

remain competitive is to convert them to a permanent learning system for constant

renewal. A learning organization is the term given to a company that facilitates the

learning of its members and continuously transforms itself. Learning organizations

develop as a result of the pressures facing modern organizations and enables them

to remain competitive in the business environment (Patnaik et al., 2013).

E-learning is not very easy to define either. Most often the concept of e-learning

covers both technical and digital means, but covers also e-learning as learning, and

learning through e-learning (Ossiannilsson, 2010b). The concept is used to cover a



wide set of applications and pedagogical processes and learning supported by

information and communication technology, such as web-based learning, computer-

based learning, virtual classrooms and digital collaboration, with an added value of

increased accessibility, flexibility and interactivity.

Professional recognition is defined as the formal acknowledgement of an individual’s

professional status and right to practice in accordance with standards and subject to

regulatory controls (Harvey, 2009). According to Tariq Mahmood Khalid Hafeez

(2013) people recognised that quality issues need to be addressed at a wider scale,

i.e. by directing organisational efforts towards preventing problems happening at the

first place. Changing from detection to prevention required not only the use of a set

of quality management tools and techniques, but also the development of a new

operating philosophy that required a change the way companies were managed. The

development of an e-Learning software system is usually a time and cost intensive

project involving human, material and other institutional resources.

Sustainable development has become popular for potentially integrating economic,

environmental sustainability and social dimensions, which are known as the triple

bottom line, in the performance evaluation of businesses (Jamali, 2006).

Theoretically, a sustainable learning organization would be an organization with

enough sustainability knowledge, would act according to, and would be considered

as a role model to prevent, eliminate and/or reduce the environmental and

occupational risks associated with its operations while enhancing and strengthening

its profitability; unfortunately in the real world, there is no such kind of organization,

yet (Velazquez et al., 2011).



Conclusion

Employability skills may be developed through specifically designated course or

option units, e.g. on career planning, CV preparation or through incorporation of

simulated “real-work” activities and assessment tasks, input from employers or

practitioners, career planning and preparation or similar activities into “subject-

based” core or option units (Andrews and Russell, 2012).

Having contributed to creating growing awareness, confidence and e-learning

expertise, support strategies are now changing. Since the original e-learning

initiatives began in 2006 much has changed in educational technology. The rapid

advance of Web 2.0 (and beyond) communication and creative media has been built

on easy to use software that allows almost anyone to author materials for the web

without specialized skills or training. Possibilities and potential for engaging in e-

learning are now much more accessible and less costly (Csete and Evans, 2013).

In all sectors, e-learning has been implemented to enable training and development

of employees in the workplace without the need to relocate people to central training

rooms and employ large numbers of trainers. Indeed, many organizations convert

their traditional training delivery methods to e-learning for economic reasons in the

belief that it is cheaper.



Recommendation

E-learning refers to the use of computer network technology, primarily via the

Internet, to deliver information and instructions to individuals. Workplace learning

refers to learning or training activities undertaken in the workplace, with the goal of

enhancing individual and organizational performance. Attention to workplace

learning has greatly increased due to the significant role of professional skills and

expertise in organization development. This work has focused on e-learning

development in view of short-term needs to improve job performance. The research

on high performance/high commitment organization maintains that “achieving and

sustaining high levels of performance requires a positive workplace environment and

practices that develop and leverage employees’ knowledge and ability to create

value” (Appelbaum et al., 2009). This in the workplace setting, learning needs should

be addressed to enhance personal and career development in the long term.

Developing e-skills among employees, because e-learning is a powerful tool for

delivering many and varied instructional technologies. For example, e-learning can

be used to present online lectures through the use of live stream audio and video

technology, textual materials in the form of electronic PowerPoint slides, and

discussions through the use of message boards and chat rooms. E-learning is a

rapidly changing area of practice; organizational practices must be examined

regularly to keep up with the state of the art in e-learning. In addition to using e-

learning in the training of IT skills, a growing number of businesses have used e-

learning in the training of business and soft skills. Some of the most common

business and soft skills to be taught via e-learning in organizations include

management, leadership, communication, customer service, quality management,

and human resources skills.



Organizations are also need engaging e-learners through customization and

personalization of the learning experience and the use of stories to present

instructional material. Customization typically involves the adaptation of various

instructional elements to meet learner preferences and needs. Personalization refers

to changes that are made to the structure of the program to give the feeling that the

learner is engaged in a conversation with the program. Personalization can be

promoted in e-learning by using conversational rather than formal language in on

screen text or audio recording. To have a positive impact, e-learning programs need

to be designed to enable employees to transfer what they have learned to their work

in improving productivity and performance.



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E-Learning and its Impact on Organization Performance

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