The Impact of Information Technology Training on Productivity

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

Training is actually an investment made to human capital. Its benefits are shared by the firm, trainee himself and also by the society. Trainee gets higher wages on his improved performance; while firm's profitability is enhanced due to increase in efficiency level. Similarly society is also benefited in two ways; externals from the society are paid by the firm for the training and there is also an addition of skilled and efficient people in the society.

The main aim of the research is to identify the impact of Information Technology of the overall productivity of the firm and its employees. The research also focuses on understanding the impact of implementing information technology training on employees' performance and productivity. Information technology training has been observed to enhance and increase the skill level and knowledge of the employees, thereby increasing their productivity within the firm. In order to compete, some organisations have turned to information technology to help provide more valuable goods and services at a lower price. This should ultimately help the company become more profitable. According to Dedrick et al. (2003), "Studies have failed to identify a relationship between IT (information technology) investment and firm profitability (p.11)." When studying previous research and literature, there is inconclusive evidence whether information technology has had a positive impact on organisational performance and productivity. The term 'productivity paradox' describes information technology's inability to increase productivity. Enhanced information technology skills among employees resulted in higher productivity, organisational performance, and firm output. Companies with high information technology efficiency ratings have reported higher return on sales than companies with low efficiency ratings.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 4: RESULTS AND ANALYSIS1

4.1 Company Profile Build King Holdings Limited1

4.2 Reliability test1

4.3 Results2

4.3 Hypothesis Testing26

4.4 Analysis of Survey Results33

4.5 Relationship of Information Technology and Productivity38

4.6 Integration of Information Technology into various Business Processes41

4.7 Implementation of Information Technology to Deal with Various Issues in Construction Industry43

4.8 Effective Communication and Building Trust Level54

4.9 Relation of Theoretical Framework to the Research57

4.9.1 Link between Human Capital Theory and Firm Performance57

4.9.2 Link between Motivation Theories and Firm Performance61

4.9.2.1 Expectancy theory61

4.9.2.2 Goal Setting Theory63

4.9.2.3 Equity Theory65

4.9.3 Theories of Training Transfer Design66

4.9.3.1 Transfer of Training66

4.9.3.2 Near Transfer of Training67

4.9.3.3 Transfer of knowledge through Training68

CHAPTER 5: CONCLUSION69

REFERENCES75

CHAPTER 4: RESULTS AND ANALYSIS

4.1 Company Profile Build King Holdings Limited

Build King Holdings Ltd is focused to become one of the leading construction firms in Hong Kong, and it wants to be the most preferred one by the customers, suppliers, sub-contractors, and joint venture partners. In order to achieve these goals, the organisation ...