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Section 3. Management
Dr. Burton A. Aggabao Facutly Member, College of Business Administration University of Fujairah, United Arab Emirates E-mail: [email protected] Amnah Khameis BBA Graduate, College of Business Administration
University of Fujairah 1207, Fujairah, United Arab Emirates
TRUST: BUILDING EFFICIENCY OF EMPLOYEES AT LULU HYPER MARKET FUJAIRAH
Abstract: This study evaluated the trust and efficiency of employees at Lulu Hypermarket Fujairah Branch, operational year 2015. The sampling technique was used to determine the samples of the study; and the descriptive research design was employed to assess the level of trust and efficiency of employees. The researcher's made questionnaire was utilized, and the Pearson Correlation Coefficient was used to test the significant relationship between trust and efficiency of employees. The study revealed that there is a significant relationship between trust and work efficiency of employees. The overall level of trust is found out to be "good" while efficiency is disclosed to be "very good" by the respondents. The same study can be replicated by considering other dimensions of trust and efficiency.
Keywords: Organizational behaviour, trust, honesty, developing relationship, employees' efficiency, quality of service and customer satisfaction
1. Introduction established. This establishment of trust is obtained
This study is identifying the relationship be- with the community that knows each other. How-tween two phenomenon. The first phenomenon is ever, the efficiency is playing a big role as well, betrust and the second phenomenon is the efficiency. cause it is showing how things are being done cor-Moreover, this study will determine the effect of rectly with trust.
trust of the efficiency of Lulu Hypermarket at Fu- Every organization seeks to increase their
jairah, United Arab Emirates. profitability and lower their costs. Therefore, or-
The study is provided to be studied in Fujairah ganizations are trying to improve their employ-City, United Arab Emirates where the economy of ees' efficiency to improve the business as well as hypermarkets is highly established. Besides, the achieving its objectives. Also, organizations are economy is small with the number or residents and developing their employees to reach efficiency incitizens. With a small community, trust can be easily side the organization. In other words, not only em-
ployees should be efficient, also the organization should be efficient. In several articles, employees are considered as the soul of the organization, because they are the one who accomplish the necessary tasks for the achievement of the organization's objectives. There are many factors to reach employees' efficiency; the most important factor is trust. Trust must be developed inside the employee to make the work efficient.
Not all organizations can reach high level of trust from their employees; therefore they will face a low degree of employees' efficiency. As Fukuyama argued, trust improves the performance of all institutions in a society [1]. On the other hand, trust promotes cooperation in large organizations, including governments. But, where these problems can occur in the organization that will affect the trust and efficiency? One of the elements that effect trust in the organization is satisfaction [2]. Most commonly, when the employee is not satisfied, the employee may perform an unethical action against the organization which will prove the distrust of the employee. Another thing is the fake of relationship among employees in the organization. When employees are not having a good relationship between each other, they will be sensitivity in the performance of tasks. As a result, trust will be decreased as well as the efficiency of work [3].
1.1 Statement of the Problem
This study evaluates the trust and efficiency of employees at Lulu Hypermarket Fujairah branch, for the operational year 2014. Specifically, this study seek to answer the following questions:
1. How do employees perceive trust in terms of:
1.1 Honesty;
1.2 Developing Relationship.
2. What is the extent of employees' efficiency, based on the following dimension:
2.1 Quality of Service;
2.2 Customer Satisfaction.
3. How does trust effect efficiency of employees?
1.2 Hypotheses of the Study
The following are the hypotheses of the study:
1. Employees trust has a direct effect on employees' work efficiency.
2. Employees trust does not have a direct effect on employees' work efficiency.
1.3 Conceptual Research Framework
This study determined the effect of trust of efficiency of employees at Lulu Hypermarket, Fujai-rah. Figure 1 illustrates the two variables used in this study, which are trust and efficiency. The researcher explained both variables in related literature reviews.
The first variable is trust, which is the independent variable is defined as an elusive concept that is a conceptual confusion with multiple definitions [4]. It is a personality trait, belief, social structure, and behavioral intention. Trust include two sub-variables that are honesty and developing relationship. These sub-variables are considered to be a creator of trust and a result of trust. Meaning to say, honesty creates trust among people, and the creation of trust among people develops the relationship between them.
The second variable of this study, which is considered as the dependent variable, is the efficiency of employees. Efficiency is the ability of a firm to maximize its production with the minimum input resources. To obtain such increase in the production with the use of minimum input, it is important to consider the quality of service and customer satisfaction. These two considerations are the sub-variables of efficiency dimension in this study [5].
1.4 Significance of the Study
The results of this study provides learning experiences and practices about the effect of trust to the efficiency of individuals, departments, and organization. In particular, the result of this study about trust gives wisdom to employees, because it helps at improving their good relationships. Out of the results of this study, their honesty may be improved. The importance of developing honesty among employees provides fairness in appraising themselves and dealing with their tasks and duties. On the other hand, developing relationship of employees
decreases their workloads. This study is important from the biases of fast accomplishment and cost sav-as is shows that trust makes employees work better ing, which is considered as efficiency.
INDEPENDENT VARIABLE
DEPENDENT VARIABLE
Trust Efficiency
• Honesty • Developing Relationship • Quality of Service
• Customer Satisfaction
FEEDBACK
This study will help each department of Lulu to develop a better idea of developing trust among employees to make them work as efficient team. When they work as a team, their relationship is developed in a better perspective. When this relationship is developed, their efficiency in accomplishing the department objectives would be higher. And, their quality of service and customer satisfaction would be easily measured. Lastly, it guides Lulu Hypermarket as an organization on how to assess higher productivity. The employees who are possessing trust and efficient in their work are likely to become productive employees. Moreover, each department can achieve its own objectives. Thus Lulu Hypermarket is benefited from this study particularly on the importance of trust toward efficiency of its employees.
2. Review of Related Literature
Trust is one factor of providing work efficiency of employees. There had been many definitions for trust, based on psychological, sociological, and economics perspectives. Williamson stated that trust is a term with many meanings [6]. Besides, Harrison
Figure 1. Research Paradigm
White mentioned that trust is itself a term for a clustering of meanings. In the other hand, Robert Kaplan said "researchers, purposes may be better served if they focus on specific components of trust rather than the generalized case". Based on the previous definitions, we can identify that trust is a compound meaning that proposes a case. Trust can be accomplished in purpose of achieving support and corporation between employees and organization. Both, employees and organization, are seeking to have a mutual relationship to support each other's objectives. Therefore, it does not mean there will be full trust between them. Because both must be aware of any potential problem can happen. Some of these potential problems may occur is the loos of the organization because of weak performance. Though, trust is a good factor to accomplish efficiency in a way of achieving each person objectives. When it comes to define trust, it is difficult based on the researchers. The reason of difficulty in defining trust is because trust is a conceptual confusion. Even though, trust can be considered as a personality trait
that human being have, which establish stronger relationship [6].
The market had been gone very wide now-a-days. As a result, many organizations are trying to take their competitive advantages at the front to win the industry they are in. as it is always known, firms has two main objectives. These two main objectives are minimizing their cost and maximizing their profit. When both objectives are being campaigned, a new formula of equation appears. When organizations minimizing their costs, it actually mean to control and wisely use their inputs such as capital, labors, raw materials ... and natural resources. In the other hand, maximizing the profit requires to have more output than it was. In here, it is obvious to have a low input with high outputs gives organizations the main objectives. Therefore, to accomplish the previous goals, efficiency is required. After tracing efficiency definition, it was end with the work of Farrell back in 1957. Farrell stated that efficiency consists of both technical and allocative efficiency. The technical was measured as the ability of an organization to produce maximum output based on a specific set of inputs. In the other hand, allocative efficiency is referred to the ability of an organization to optimize the use of input given their respective prices. Based on the previous discussion, efficiency is actually important factor for organization to reach out their objectives. Moreover, efficiency will give the organization a competitive advantage in the market [5].
A review of trust had been provided earlier in this chapter. Trust can be simply destroyed because of dishonesty. In the consideration of building trust, honesty must be developed. Therefore, it is a positive relationship between trust and honesty. Under defining honesty, it is shown that honesty is also a personality trait. Honesty as the virtue of refusing to fake facts of reality. Also, she stated that there are negative and positive definitions of honesty. Whereas negative definition is refusing to do something, while the positive definition is the commitment to the facts of reality [7].
In some arguments, it is mentioned that saying out true information without the critical information is considered to be a lie. But, in the consideration of how many information must be provided to the customer by the employee is actually causing some confusion to some scientists. Because of the huge amount of information the employee has, some may slips away and not being provided to the customer. In that case, honesty is still considered because what had been happened is simply a mistake of rationality. Therefore, it is still moral to provide as much as information an employee can give to the customer. As a result, it leads humanity for three main considerations that determines contextual relevance. First, based on the nature of the information, depends on the person preferences of privacy such as details of difficulty in labors. The second is the nature of the relationship; specific information must provide the information such as death. Third consideration is the background of the knowledge; it is based on the amount of information needed for reasonable inferences to the truth such as informing a person about someone is a thief without mentioning that the teller is a thief as well. In here, many considerations are putted to determine truth that will lead to honesty [7].
Beside honesty to develop trust, interpersonal relations also plays a role in developing trust as well as maintaining positive feelings in the organization. Moreover, interpersonal relation can be considered as a contributor of producing efficiency [8]. In another discussion, interpersonal relationships are a core of social system. In a definition of interpersonal relationship, it is appeared to be a close association among individuals who share the same interests and goals. There are three dynamics in interpersonal relationships; they are Dyad, Triad, and Group. First dynamic, Dyad, it is an interaction between two people that one relays a message and the other listens. Dyad is simply ended when one constituent refuses to listen. Even though, it is one of the most intimate interpersonal dynamic as focus of communication on one person. Triad, the second dynamic,
consists of three people where as there is an engagement of relay, and receives of ideas and thoughts. It is more stable because the third party can be a mediator in case of conflicts among the other two parties. The third dynamic is group, which consists of more than three members. Group dynamic is the most stable from of interpersonal relationship.
Looking into the relationship can be existed between employees and customers, it is found to be an acquaintances interpersonal relationship. Acquaintance is a relationship where someone is simply known to someone else by introduction or by a few interactions. This is simply a specification of a relationship between employees and customers. Acquaintances may be a beginning of a future close relationship [9]. Moreover, interpersonal relationship model that consists of four phases. First is orientation whereas the employee introduces him or herself to the customer sharing some of his or her responsibilities. Second is identification phase is when the employee provide an understanding to the customer's feelings and the employee must avoid vagueness by using terminology. Third phase is exploitation in which the customer understands the problems by exploring all available avenues to solve it. Besides, the employee provides assistance to the customer to solve the problems. The last phase is resolution is the stage of termination of the professional relationship established among the employee and the customer [10].
One factor that determines efficiency is the quality of the service or product. In looking at quality definition, quality is perceived differently by different people. Based on the relevant dictionary, quality means the degree of excellence. In marketing perspective, quality is determined by production as recognition of the customer for the quality of fit, finished, appearance, functions, and performance of the product. While in services, quality is measured by the degree of customers' satisfaction who received the service [11].
One way of measuring efficiency is by measuring customers' satisfaction. When customers are satis-
fied, it is a prove that the organization is efficient, which will lead to the efficiency of employees. One factor that determines customers' satisfaction is customer service. Any organization is seeking for a high degree of customer service. Organizations put up a program that assists them to reach the high level of customer services. The program is based on the approach of provide customers with what they want and actually seeing they are receiving it. There are many ways to measure customer satisfaction; some of them are quality of service, pricing, trust in employees, and the closeness of the relationship with contacts in the company [12].
Based on quality way of measuring customer satisfaction, when the quality of products or services is high, there will be a high level of customers' satisfaction. For many researchers and scientists, price is considered to be a value in these days. Therefore, customers are looking for a high value when they purchase products or services. That will depend on the pricing decisions. Upon trust in employees, customers will be comfortable when they purchase from a trustful person to them. Therefore, trust is a way of achieving customers' satisfaction. Moreover, the relationship developed between the customer and the employee will assist the organization to maintain that customer. Also, the relationship cannot be developed without any satisfaction. The final result of customers' satisfaction is loyalty. When customers are satisfied, they will become loyal to the organization with will assure the profitability for the organization itself [12].
3. Research Methodology
3.1 Research Design
The descriptive research designed is used in this study. Descriptive research is the method of providing information related to naturally occurring characteristics in a specific group, which is not truly experimental [13]. Specifically, the researcher used the survey research design, which is one type of descriptive research that uses questions to be asked to a group. In this study, descriptive research design is
used to measure trust and efficiency of Lulu Hypermarket employees in Fujairah.
3.2 Population Frame and Sampling Technique
The population of this study represents all employees working at Lulu Hypermarket, Fujairah. The total employees-population working in Lulu Hypermarket in Fujairah is 170 employees. The researcher used the random sampling technique to determine the sample of this study. By the use of random sampling, the researcher draw the 30 employees-samples.
3.3 Description of Respondents
The respondents of the study are selected by the use of the random sampling technique. The demo-graphical factor are not considered that resembles the age, gender, culture, nationality, and others. The samples are drawn from managers, supervisors, and employees.
3.4 Data Gathering Instruments
The researcher's made questionnaire is used to gather data required. The researcher developed a questionnaire in the format of checklist. The checklist included several questions related to the topics being explained earlier in this study. However, the researcher used one questionnaire that includes two main topics; they are trust and efficiency. The questions in the questionnaire are developed based on the dimensions used. The researcher ensured of the validity and reliability of the questionnaire by using several literature reviews. These literature reviews are Billikopf (2006); Chandrupatla (2009); Harrison & Norman (2001); and Ralph & Fullenkamp (2001).
3.5 Procedures in Gathering Data
The researcher developed the survey-questionnaire on trust and efficiency. The researcher sought a request to the management of Lulu Hypermarket that she be allowed to conduct her study. After receiving the approval, the researcher distributed the questionnaires according to established sample-respondents. The researcher collects, tabulate and statistically compute the data. The results of the statistical computation are further presented in Chapter V.
3.6 Statistical Treatment of Data
The weighted mean and coefficient correlation are used in this study. The weighted mean is used to measure the level of trust and efficiency of employees. The coefficient correlation is used to assess if there is a significant effect of trust to work efficiency of employees.
4. Results and Discussions
4.1 Level of Trust of Lulu Hypermarket Employees
The first part of the questionnaire used in this study describes the first variable of this study, which is trust. The component trust included two (2) parts, which are Honesty and Developing Relationship. The Likert scale used in this part of the questionnaire is rated between Very Poor (1) to Very Good (5). The final result of trust component obtained a weighted mean of 4.44, which is scaled as "good".
4.1.1 Honesty
Data shows that the level of trust in terms of honesty in Lulu Hypermarket was "very good" according to the computed mean score of 4.56. The respondents had assessed honesty of employees with their customers in which developed trust as "very good" based from the mean score of 4.73. This result is supported by Hsieh [7], which explains that honesty must be developed to build trust. Moreover, employees are honest with their information provided to customers, which obtained a weighted mean of 4.43 that is described as "good". This explains that Lulu Hypermarket employees reject unrealistic facts. As defined by Hsieh, honesty as the virtue of refusing to fake facts of reality. Beside, respondents stated that employees provide as much of "good" information as possible to customers [7]. This result had been drawn from the weighted mean of 4.50 given by respondents.
4.1.2 Developing Relationship
The Developing Relationship under the Trust component acquired a weighted mean score of4.32 that is referred to "good". Under developing relationship, there are three questions that had received equal reactions. First, respondents described "employees have a
strong interpersonal relationship that is built between employees and customers" as "good". This result is given based on the weighted mean of 4.40 given by respondents. As Harrison & Norman [4] stated, trust can be considered as a personality trait that human being have, which establish stronger relationship. Second, employees have develop relationships contributes in producing efficiency received a weighted mean score of4.27, which is "good" This result is supported by Bil-likopf [8], as he explained that interpersonal relations play a role in developing trust in which contributes in producing efficiency. Third, employees adopt dyad dynamic of interpersonal relations is "good" based on respondents assessment that is 4.30 weighted mean. Dyad is an interaction between two people that one relays a message and the other listens, which is used when one constituent refuses to listen. Dyad is an interpersonal dynamic focused on communication on one person [8].
4.2 Level of Efficiency of Lulu Hypermarket Employees
The over-all efficiency of Lulu Hypermarket is found out to be very good as shown by the computed weighted mean score of 4.52. There are two variables of efficiency: these are quality of service and customer satisfaction. The used Likert scale for this part of the questionnaire is rated between Very Poor (1) to Very Good (5).
4.2.1 Quality of Service
The assessment of respondents on "Quality of Service" was found out that it is "very good" based on the computed weighted mean score which is 4.53. The study further reveals "very good" description to employees reach Excellency in its products' quality according to the weighted mean of 4.62. Furthermore, a description of "good" is given to the dimension stating "employees' present high quality products that meet the customer's needs", as it obtained 4.73 weighted mean. Respondents assessed that products quality is determined by customer's recognition of fit, finished, appearance, functions, and performance of the product with a weighted mean
of 4.60, which is "very good". According to Chan-drupatla [11], quality is defined in different perspective. Quality is defined as the degree of excellence, a production of recognition of the customer fitness, finished, appeared, functioned, and performed product; and the degree of customer satisfaction. Therefore, as quality of service of Lulu Hypermarket employees is described "very good", it is supported by the definition of Chandrupatla [11]. 4.2.2 Customer Satisfaction
The assessment of respondents on the customer satisfaction component is found out to be "very good", as it has an average weighted mean of 4.51. Specifically, respondents scaled the "Lulu Hypermarket uses a strong program to reach a high level of customer service" of 4.57, which is "very good". Ram [12] supports this result, as he stated that when the quality of products or services is high, the customers' satisfaction would be high. Lulu Hypermarket products' prices are decided "good" upon prices decisions toward the value of the product as assessed by respondents with a weighted mean of 4.43. According to some scientists, price is considered a value, which customers are looking for a high value when they purchase products or services [12]. On the other side, respondents declared that Lulu Hypermarket is "very good" in receiving a high rate of customers' loyalty through customers' satisfaction as shown by the computed weighted mean of 4.51. This component is supported by Ram [12] as he discussed that when customers are satisfied, they will become loyal to the organization with will assure the profitability for the organization itself.
4.3 Significant Relationship between Trust and Efficiency
The researcher found out that there is a significant relationship between trust and efficiency of Lulu Hypermarket according to the computed p value = 0.006 associated to the computed correlation coefficient value, which is 0.488 in which is greater than the hypothesized probability level at p = 0.05.
According to Ram [11], one way of measuring efficiency is by measuring customers' satisfaction. Moreover, customer service is required to be in a high level to obtain customers' satisfaction. Beside, customer service requires an interpersonal relationship based on trust between the employee and the customer. Therefore, one way of measuring customers' satisfaction is through trust in employees. As a result, it is supported that Lulu Hypermarket is strong in its customer service (built by trust) in which strengthen the customers' satisfaction (building efficiency).
5. Conclusions
The following are the conclusions of this study according to the results and findings:
1. The level of trust of Lulu Hypermarket is assessed by employees-respondents as "good". Specific variable of trust that is also assessed as good is developing relationships of the employees. While honesty of the employees is found to be "very good".
2. The level of efficiency ofLulu Hypermarket is assessed as "very good" by employees-respondents. Both variables under efficiency are very good; they are quality of service of Lulu Hypermarket employees, and customer satisfaction of Lulu Hypermarket.
3. Trust has a significant impact toward efficiency of Lulu Hypermarket employees.
6. Recommendations
The following are the strategic recommendations based on the findings and conclusions of this study:
1. Trust of Lulu Hypermarket Employees
1.1 Employees of Lulu Hypermarket must ensure the accuracy of their information to support customer service from the component of honest.
Buttry [12] stated that ensuring accuracy in information involves several steps; they are asking effective questions, taking accurate notes, gathering source documents, questioning information, verifying information, and fact checking content.
1.2 The relationship between the employee and the customer is very important to be developed and improved in Lulu Hypermarket. As discussed by Beard, building customer relationships is a customer retention strategy that is used to improve customer service and reduce customer grievances. To fulfill this strategy, there are six tactics; they are communicate respectfully, know your customer, use customers feedback, sustain regular contact with customers, build trust with customers, perform inbound marketing [14].
2. Efficiency of Lulu Hypermarket Employees
2.1 Lulu Hypermarket must apply customers' needs analysis. Customers' needs analysis assesses in defining problems, customers, and technology solutions. It benefits the company to absorb information, process the information, and synthesize new product or service that serves customers' needs. Moreover, it helps the company to figure out the problems that must be solved that customers care about [15].
2.2 Lulu Hypermarket can use competition based pricing method to price their products. That is because it gives Lulu Hypermarket a focus on the industry and their competitors. This method will provide a full understanding of the competitors. Moreover, it will determine the uniqueness of the company products that can be turned into an advantage [16].
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