Omid Sharafat Training and development programs in ... · Training and development programs in...

Omid Sharafat

Training and development programs in

telecommunication companies - a case study on

Etisalat Afghanistan

Volume | 032 Bochum/Kabul | 2017 www.development-research.org | www.afghaneconomicsociety.org

Training and development programs in telecommunication companies – a case study on Etisalat Afghanistan

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Training and development programs in telecommunication

companies - a case study on Etisalat Afghanistan

Omid Sharafat

Keyword list

Productivity, Job Performance, Promotion, Training and development, Cross tabulation,

Telecommunication, Etisalat Afghanistan

Abstract

Training and development is considered vital for the employees in order to increase their

productivity. Training assists employees to learn skills and behaviors that will help them perform

their job successfully.The main motive behind doing this research was to find the positions of the

employees in Telecommunication Company in Afghanistan.

The data was collected from 182 employees in five provinces. The main objective of this paper

was to find the relationships between the variables such as training with productivity, training with

promotion, training with job performance, productivity with promotion, and so on.

In order to analyze these relationships the cross tabulation method was used and then the

relationship was tested using chi square test. From the study it was found that the following

variables had positive relationship: training with productivity, training with objective achievement,

training with job performance, productivity with promotion, and quality of training with productivity.

However, the following variables had the negative relationships: education with job performance,

incentives with participation in the training, experience with promotion, and experience with

productivity. Most of the relationships were as expected, except few such as education with job

performance, experience with productivity, providing incentives for training and participation in

training.

Description of Data

A total of 182 questionnaires were distributed to employees of Etisalat Afghanistan. The response

rate was positive, with all 182 questionnaires returned and completed. The provinces included in

this study were Khost, Paktia, Paktika, Ghazni, and the capital, Kabul. The total number of

employees in these provinces is 1,349, meaning that 13.49% of them were interviewed for this

research. The first four of the above-mentioned provinces are located in the south-east region of

Afghanistan, which had easier access in terms of transportation and security concerns. Kabul


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was selected based on data accessibility and its linkages with the provinces. Additionally, almost

all local trainings conducted in Kabul. Due to security and time constraints, other provinces were

not included.

Effective sampling techniques were used for this study. In order to maintain a broadly inclusive

focus, all employee levels of Etisalat Afghanistan were considered. The research sample was

then picked up randomly based on the company personnel working in five different provinces

noted above with the objective of making it sufficiently representative with regard to the total

population of the company. The primary data were collected using questionnaires that included

22 questions. The answering process of the questionnaire was completed through face-to-face

meetings, emails, phone calls. The secondary data were collected from various sources such as

textbooks, journals, articles, and websites.

Research Question/Theoretical contextualization

Telecommunication is one of the major market sectors in Afghanistan and accounts for the largest

in private ownership. Human resources are a major and significant component of this sector and

must be viewed as one of the priorities of telecommunications companies. In Afghanistan, this

sector is growing and there is stiff competition between the players. In consequence, only

companies with highly skilled and well-trained employees will perform well. Several studies of the

South Asia region show that training and development play an extremely significant role in

capturing market share. One study of the Indian market has shown that the impact of training and

development is higher than that of other factors (Deepa & S, 2014, p. 7). The Indian

telecommunications company Airtel has a market share of some 20.6 percent just after Vodafone

with 16 percent (Deepa & S, 2014, p. 8). This is so because they have invested more than other

companies in the training and development of employees to achieve their goals. Another study in

Sri Lanka shows that training and development can improve teamwork, morale, motivation,

productivity, quality, safety, job satisfaction and hidden talents (Imbulana & Gamage, 2013, p.

23).

In the telecommunications sector, the absence of human resources with managerial and/or

technical skills has placed massive limitations on the expansion of development projects. For this

reason, the industry is always constantly trying to improve its human resources. Training and

development are fundamental aspects of the process of building human resources capacity in the

industry. Investing in human capital will ensure that the sector produces positive impacts on the

productivity of employees as well as on the organization as a whole. The development of

innovative solutions and new technologies, as well as the focus on customer satisfaction, has led

to significant changes in the training and development programs in the telecommunications

sector.


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Every so often, the business environment changes and all businesses find that they have many

new opportunities to exploit and challenges to tackle. In such a competitive environment, only

dynamic companies that reinvent themselves are able to survive. It is, therefore, the responsibility

of the management of these companies to offer employees a stimulating work experience

enabling them to make the best of such opportunities and deal with the challenges facing the

company. This approach allows companies to remain competitive. In the course of time, the

management will be required to change its rules, regulations, and policies. Apart from the other

challenges such as improving production and making use of advanced technology to improve

efficiency, there is also intense competition between the various players in the industry to recruit

a competent and experienced and workforce. The success of the company will depend on the

quality of the workforce, which is also faced with many challenges. Thus, the company must

attract a high quality and competitive workforce, recruit intelligent, dynamic and enthusiastic

people and motivate the current workforce by using a range of techniques as well as offering

quality training and development programs. For a company to remain competitive, training is an

essential tool that can help it gain a competitive edge and enable the workforce to achieve the

company’s stated objectives.

In the light of all the above-mentioned considerations and studies, the focus in this paper is on

evaluating training and development programs from an employee’s perspective in general and

finding out in particular how employees evaluate the effectiveness of training and

development program in Etisalat Telecommunication Company?.

Training can make employees more able and sure in their jobs, and consequently in their life.

Hence, it is an organized procedure for improving the knowledge and skill of the employees

“Training refers to a planned effort by a company to facilitate employees’ learning of job-related

competencies” (Noe, 2010, p. 5). Employee performance goes hand in hand with training and

since employees are the determining factor of organizational success, there is need to ensure

that employees are motivated and that the factors that determine employee performance are

analyzed. Employee performance is affected by training (Huang, 2001, p. 440). Training is a

planned effort by an organization to facilitate employee learning of competencies that are job-

related including knowledge, behaviors, and skills that are fundamental for effective job

performance. The process of training entails teaching old or new employees so as to increase

their productivity at the workplace. Training involves skill and knowledge acquisition for

performing certain jobs. It is also referred to as the systematic process of behavior modification

that occurs due to education, planned experience, development and instruction (Arthur et al.,

2003, p. 237).


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Evaluation of training and development programs can be done in different ways, the most

commonly used ones being meant for providing feedback on such things as “ improving future

provision, informing senior management for strategic decisions on training expenditure, and

encouraging trainees to reflect on their experiences” (Boxall, et al., 2007, p. 331).

In the evaluation, the main idea behind the feedback is to analyze the effectiveness of training

programs which would make it possible to later use all the accumulated data in order to assess

the training program in general. Topno (2012) claims that “training evaluation refers to the process

of collecting and measuring the outcomes needed to determine whether training is effective”

(Topno, 2012, p. 16).

It is obvious that evaluation permits organizations to keep conducting training programs that work

efficiently and stop those training programs, which do not work well and are inefficient.

A training evaluation can have one of two basic aims: first, to increase the effectiveness of the

training by assessing progress before it is complete and second, to measure the final result.

These two aims are described as formative and summative evaluation, respectively (Noe, 2010,

p. 218).

Formative evaluation refers to assessment that takes place during the training program for the

purpose of development and improving performance. The goal of this type of evaluation is to

make sure that the training program is well managed and running efficiently, thus enabling

trainees to learn adequately and fell satisfied with the process. The information acquired from a

formative evaluation is used to improve future training programs (Noe, 2010, p. 218).

A summative evaluation, on the other hand, involves estimating the effectiveness of a completed

training programs and determining the goals that should be set for a future training (Noe, 2010,

p. 219).

Evaluation is meant to determine the extension of the changes in the expected result of an

organization due to training programs, which were fulfilled for the participated employee.

The aim of an evaluation is to determine the elements on which to focus in order to make a training

program most effective. It also assists with deciding what is desirable in cost/benefit terms and

how expectations can be fulfilled most cost-effectively in the future (Armstrong, 2006, p. 615).

Every year, American companies spend considerable sums of money in training their employees.

At the same time, both individual trainers and the training community at large continue discussing

various aspects of the value of a training program and ways of determining it (ATD Staff, 2013).

It is widely believed that training employees properly will allow a company to become more

profitable. Value is added through enhancing employees ‘productivity, skills, and commitment to


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the company. Now the question arises: Do the employees personally benefit from training

programs? The answer to this question is assumed to be more on the positive side, as training

programs are mostly centered on acquiring communication skills, computer literacy, and an

enhanced understanding of customer service, teamwork, ethics, quality assurance, safety, and

so forth. In more detail, the direct benefits to employees from training include:

Job satisfaction: Employees will not be committed to their company if they feel that it is

not looking after them. On the other hand, if the company is willing to cover the costs of

employees’ training, then employees are likely to see the value in this and perform their

work better (Khan, 2016, p. 7). Furthermore, providing training programs may lead to

satisfied employees who believe that their job has a purpose beyond just financial benefits.

High job satisfaction means that employees feel motivated to achieve a better outcome

for both, their own and their company’s sake (Jha, 2016, p. 34).

Improvement in career competencies: Most employees in the telecommunication sector

understand that knowledge matters and they must maintain and, indeed, consistently

improve their skills in order to meet the current demands of the market. They understand

the importance of training programs and want to increase their salary. New employees

have less experience and prefer to join companies that are willing to provide training. This

will help them to improve their skills and understand new technologies. Employees believe

that some training programs may lead to more responsibility and a higher salary. Every

employee would like to remain competent and up to date in the ever-changing job market.

This gives employees the hope of suitable opportunities (Raja, et al., 2011, p. 64).

Improvement performance: Training improves the performance of employees, which they

desire, along with personal development. It can be assumed that the employees’ ambition

to improve their job performance is not their only goal. Rather, they are also interested in

taking advantage of what might become possible through this improvement. Furthermore,

employees desire to gain more technical and professional skills. They believe that this will

help them to deliver great results and receive positive appraisals from their superiors. The

employee is aware that his performance is measured against certain metrics, and he

would like to gain skills that will guarantee better results. This will enable the employee to

meet the key performance indicators that have been set out by the company. Improved

performance matters to employees because it can be the gateway to the promotion and

greater remuneration. It also keeps employees motivated and engaged (Khan, 2016, p.

16).


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Self-esteem: Through training, employees gain new skills, which builds self-esteem. This

may lead to employees having greater confidence about the work and embolden them to

be more creative and flexible (Kum, et al., 2014, p. 102).

Better pay: As mentioned above, by receiving training, employees build self-esteem,

which may result in positive changes in their behavior and work style. As a result,

employees could also earn better pay through promotions and raises (Kum, et al., 2014,

p. 102).

Productivity: Training makes employees more productive and enhances their chance of

earning promotion. Hence, companies usually organize training when they need to

improve employees’ skills or update them about the use of new technology. Ultimately,

employees are receiving direct benefits from the training that will bring about changes in

their personal productivity. By adopting new skills, employees feel more informed,

confident, and productive, which increases their expectation of performing better and

receiving compensation in various ways (Kum, et al., 2014, p. 99).

Creativity and problem-solving skills: Training employees and helping them to acquire new

skills gives them the opportunity to become more creative and to think differently about

challenges compared with untrained employees. Trained employees may also proceed

more efficiently and rationally when solving a problem or taking a decision (Pulakos, 2004,

p. 21).

Employees prepare for a change in the firm: It is expected that training and development

program will equip employees with the necessary set of skills that will make them accept

the change process in the firm. Change in the firm is associated with a radical shift in the

way tasks and processes are performed in a firm. These changes in the firm include

employee’s loss of job, increased responsibility, new tasks and new ways of performing

the tasks in the company. If the employee is prepared psychologically for change, this

implies less time for convincing an employee to accept change and use that time for

increased productivity (Itika, 2011, p. 128).

The results presented above could arise from undertaking training in a company. However, this

depends on the type of training, the type of work, and the broader cultural environment, which

mostly depends on country-specific norms. Therefore, the results will evaluate and test these

hypothesized outcomes by considering the specific case of Etisalat, Afghanistan.

Field research design/ Methods of data gathering


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In 2002, when the new transitional government was established, the telecommunications sector

grew significantly, particularly in mobile communications. In this year, the AWCC was the only

mobile service company supplying these services across the country, with an initial investment of

USD 56.9 million (Hamdard, 2012, p. 13). There are now six companies in the country, which

have investments in the telecommunications sector and actively operate in this field. Four of these

six companies are GSM/mobile operators, namely AWCC, Roshan, Etisalat, MTN, as well as two

fixed-line carriers, Afghan Telecom and Wasel Telecom (Hamdard, 2012, p. 8).

In May 2006, Etisalat received the 4th GSM license from the Ministry of Communication and

Information Technology (MCIT) with a total license fee of USD 40.1 million, through an initial

investment of USD 300 million (Mandozai, 2016).

The total ownership of Etisalat in Afghanistan belongs to Etisalat UAE (Hamdard, 2012, p. 16). In

addition to Afghanistan, Etisalat UAE operates throughout the Middle East and Africa, and is

considered by many to be one of the largest and most well-known telecommunications companies

in the world (News, 2014).

Of the approximately 1.9 billion people populating 18 countries across Asia, the Middle East, and

Africa, more than 135 million are customers of Etisalat telecommunications services (Etisalat

Afghanistan, 2013). Etisalat Afghanistan began in August 2007 and now covers 34 provinces and

over 200 districts, providing voice and data services through more than 12,000 retail outlets. The

number of active Etisalat customers in Afghanistan has recently reached 5 million people (Etisalat

Afghanistan, 2013). Etisalat was the first 3G launcher, and was awarded a 3G license by ATRA

for USD 25 million in license fees on March 18, 2012 (Hamdard, 2012, p. 16). Etisalat

Afghanistan’s annual revenue for 2014 was AFN 14 billion and AFN 12.5 billion in 2015. When it

comes to market value for customers, Etisalat ranks third, with Roshan and MTN ranking first and

second, respectively (Mandozai, 2016). Etisalat Afghanistan has a total of 3389 employees

divided across four major staff categories, namely national, international, casual, and contractual,

as shown in Table 1 (Mandozai, 2016).

Table 1: The number of Etisalat employees by staff category. Source: (Mandozai, 2016).

Staff Category Number of Employees

1. National permanent employees 479

2. International permanent employees 17

3. Casual employees 184

4. Contractual employees 2709

5. Total employees 3389


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Approximately 90% of Etisalat Afghanistan employees are locally employed. Etisalat UAE

recently employed world-renowned trainers to conduct an employee succession plan for the

training and development of Afghan employees, aiding upward mobility into senior management

positions (Etisalat Afghanistan, 2013). Etisalat Afghanistan offers international roaming services

in over 116 countries through 231 operators (Etisalat Afghanistan, 2013). Etisalat Afghanistan

has taken many initiatives with respect to corporate social responsibilities. Supporting the national

cricket team and other sports activities is one of many contributions this firm has made.

Furthermore, they are highly involved with helping poor members of society. For example, the

food distribution program is a country-wide activity carried out by Etisalat. In addition, it

implements a comprehensive campaign for collecting blood donations, which are given to

hospitals, indeed when emergency situations arise (Etisalat Afghanistan, 2013).

As many of the variables considered below are dummy variables, it is possible to use the

frequency distribution method and cross-tabulations (that shows the association between two

variables) to interpret the results. Calculations were made using SPSS computer software. All of

the hypotheses were tested using a significance level of five percent. Since most of the data

collected are nominal level data, tests of relations between variables were conducted using the

Chi-square test.

Results

This section presents cross-tabulations and the results of chi-square tests that have been used

to determine whether there is an association between the variables discussed above.

These tables are based on data collected from Etisalat Afghanistan employees.

Table 2: Association between Productivity and Promotion

Promotion

Total Yes No

Productivity Yes Count 70 52 122

Expected Count 53.2 68.8 122.0

No Count 5 45 50


Total Count 75 97 172


Source: Own Data, December 2016

H0: There is no relationship between productivity, and promotion

H1: There is a relationship between productivity, and promotion


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According to the results presented in Table 2 and the performance of a chi-square test, there is a

strong association between productivity and promotion. The level of significance against which p

values will be compared throughout this study is 0.05. In this case, the chi-square statistic is

32.371 and degrees of freedom are equal to one. The reported significance level is 0.000, which

is less than 0.05, and thus the null hypothesis that there is no relationship between productivity

and promotion can be rejected. Put another way, from the employees’ perspective, there is

evidence of a relationship between productivity and promotion. Furthermore, this relationship is

supposed to be positive based on the comparison of the expected count with actual count in the

cross-tabulation table.

Table 3: Association between Training and Productivity

Productivity

Total Yes No

Training Yes Count 120 35 155


No Count 1 16 17





H0: There is no relationship between training and productivity

H1: There is a relationship between training and productivity

According to the cross-tabulation presented in Table 3 and the performance of a chi-square test,

there is an association between productivity and promotion. The chi-square statistic is 37.585,

the degrees of freedom are equal to one, and the reported significance level is 0.000, which is

less than 0.05. Therefore, the null hypothesis that there is no relationship between training and

productivity can be rejected. From the employees’ perspective, there is evidence of an association

between training and productivity. Furthermore, this relationship is supposed to be positive based

on the comparison of the expected count with actual count in the cross-tabulation table.

Table 4: Association between Training and Promotion

Promotion

Total Yes No



No Count 1 11 12






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H0: There is no relationship between training and promotion

H1: There is a relationship between training and promotion

According to the cross-tabulation presented in Table 4 and a chi-square test, there is a strong

association between training and promotion. The chi-square statistic is 6.526, the degrees of

freedom are equal to one, and the reported significance level is 0.011, which is less than 0.05.

Therefore, the null hypothesis can be rejected. It can be concluded that from the employees’

perspective, there is evidence of a relationship between training and promotion. Furthermore, this

relationship is supposed to be positive based on the comparison of the expected count with actual

count in the cross-tabulation table.

Table 5: Association between Training and Job Performance

Job performance

Total Yes NO



No Count 1 20 21





H0: There is no relationship between training and job performance

H1: There is a relationship between training and job performance

According to the results presented in Table 5 and performing a chi-square test, there is a strong

association between training and job performance. The chi-square statistic is 57.280 with degrees

of freedom equal to one. In this case, the reported significance level is 0.000, which is less than

0.05. Therefore, the null hypothesis can be rejected. From the employees’ perspective, there is

evidence of a relationship between training and job performance. Furthermore, this relationship

is supposed to be positive based on the comparison of the expected count with actual count in

the cross-tabulation table.

Table 6: Association between Training and Achievement of Objectives

Got Objective

Total Yes No



No Count 1 11 12



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H0: There is no relationship between training and the achievement of objectives

H1: There is a relationship between training and the achievement of objectives

According to the cross-tabulation presented in Table 6 and performance of a chi-square test, there

is a strong association between participation in training and employees’ achievement of

objectives. The chi-square statistic is 10.866, degrees of freedom are equal to one, and the

reported significance level is 0.001, which is less than 0.05. Therefore, the null hypothesis can be

rejected. From the employees’ perspective, there is evidence of a relationship between

participation in training and the achievement of objectives. Furthermore, this relationship is

supposed to be positive based on the comparison of the expected count with actual count in the

cross-tabulation table.

In order to make the analysis simple, from this point, only the results of the chi-square test will be

presented as the test of the relationship between the variables.

H0: There is no relationship between quality of training and productivity

H1: There is a relationship between quality of training and productivity

The calculated chi-square statistic is 16.329, with three degrees of freedom. The reported

significance level is 0.001, which is less than 0.05. Therefore, the null hypothesis can be rejected,

and it can be concluded that from the employees’ perspective, there is evidence of a relationship

between the quality of the training and productivity.

H0: There is no relationship between providing incentives for training and participation in training

H1: There is a relationship between providing incentives for training and participation in training

The calculated chi-square statistic is 0.354, the degrees of freedom are equal to one, and the

reported significance level is 0.552. At the five percent level, the null hypothesis that there is no

relationship between these variables cannot be rejected. We thus conclude that it is possible that

there may be no relationship between providing incentives for training and participation in training.

H0: There is no relationship between education and job performance

H1: There is a relationship between education and job performance

The calculated chi-square statistic is 4.977 with 2 degrees of freedom. The reported significance

level is 0.083, which is greater than 0.05. Therefore, the null hypothesis cannot be rejected at the

five percent level. From the employees’ perspective, there is no association between education

and job performance.


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H0: There is no relationship between the application of skill and productivity

H1: There is a relationship between the application of skill and productivity

In this case, the chi-square statistic is 9.243, with 2 degrees of freedom, and the reported

significance level is 0.01, which is less than 0.05. Therefore, the null hypothesis can be rejected,

and it can be concluded that from the employees’ perspective, there is evidence of a relationship

between the application of skill and productivity.

H0: There is no relationship between experience and promotion

H1: There is a relationship between experience and promotion

The calculated chi-square statistic is 3.851 with 2 degrees of freedom. The reported significance

level is 0.146, which is greater than 0.05. Therefore, the null hypothesis cannot be rejected at the

five percent level. It can thus be concluded that from the employees’ perspective, there is not a

relationship between experience and promotion.

H0: There is no relationship between experience and productivity

H1: There is a relationship between experience and productivity

The calculated chi-square statistic is 5.038 with 2 degrees of freedom. The reported level of

significance is 0.081, which, again, is greater than 0.05. Therefore, the null hypothesis cannot be

rejected at the five percent level. From the employees’ perspective, there is no relationship

between experience and productivity.

Discussion & Conclusion

The intention of this study was to evaluate the effectiveness of the training and development

programs used by the telecommunications company Etisalat Afghanistan. The data were

collected through questionnaires, with a sample size of 182 interviewees. The respondents were

selected from five provinces (Khost, Paktia, Paktika, Ghazni, and Kabul) of Afghanistan. Before

the results were presented, background information of the training and development programs

was provided. The evaluation was carried out in a way that provided insight into the perspectives

of employees. This study utilized the cross-tabulation method as well as the chi-square test to

determine whether there were associations between pairs of variables.

Theoretically, it has been assumed that Etisalat Afghanistan’s training and development programs

have an impact that is felt in many ways. These include productivity, promotion, job performance,

personality development, career advancement, wage increases, enhanced job satisfaction, and

so forth. However, according to the results of this case study, the training programs have not been

influential in certain respects. In addition, other pairs of variables revealed an absence of


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association, such as experience and productivity, education and job performance, which was

unexpected.

In the empirical section, Cross-tabulations and chi-square tests of significance were used to

determine whether there was a relationship between different pairs of variables.

The results and conclusions are wholly based on information provided by the respondents:

employees of Etisalat Afghanistan. The data were collected from these employees, and the

analysis, as well as the evaluation, was made on the basis of their perspectives. While the

theoretical background covers all the ways in which aspects of training and development

programs of the company can be evaluated, the conclusions of this paper focus on what the

employees of Etisalat Afghanistan have experienced.

The data were thoroughly reviewed and inspected before the tests of significance were

performed. A significance level of five percent was used throughout.

Based on the findings, it can be concluded that productivity is associated with promotion, and

quality of training is associated with productivity. Training is associated with a number of variables.

These include productivity, performance, promotion, and achievement of objectives. In contrast,

there are variables that do not demonstrate evidence of being associated with each other. These

include providing incentives and participation in training, experience and productivity, experience

and promotion, as well as education and job performance.

From a long-term perspective, the relationship between training and many of the variables noted

above may persist over time.


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