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Skill Development and Job Satisfaction: Workers’ Perspectives in Thailand’

Industrial Sector

Article in Knowledge Management · January 2017

DOI: 10.18848/2327-7998/CGP/v17i02/1-10

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 1

Skill Development and Job Satisfaction:

Perspectives of Workers in the Industrial Sector of Thailand

Chanchai Phonthanukitithaworn1, Chavis Ketkaew2, Phaninee Naruetharadhol2

(1) Mahidol University International College, Mahidol University, 999 Phutthamonthon 4 Road,
Nakhonpathom, 73170, Thailand
(2) Khon Kaen University International College, Khon Kaen University, 123 Mitraphap Highway, Khon
Kaen 40002, Thailand

Chanchai Phonthanukitithaworn (First Author)

Chavis Ketkaew (Corresponding Author)

chaket@[Link]

Abstract

In Thailand, several initiatives have been trying to educate laborers in the industrial sector
as they are the primary engine to run and expand Thai economy. However, little has been
discussed regarding perspectives of laborers in Thailand’s industrial sector on skill development
and job satisfaction. Particularly, this research paper aims to investigate the association between
the industrial laborer’s perspectives on skill development and their level of job satisfaction. Using
stratified sampling method, 600 laborers in Thailand’s industrial sector namely automobile,
agriculture, electronic, and tourism and hospitality were utilized as samples classified into gender
stratum (male and female). As this study hypothesized that perspectives on skill development
positively correlated with the level of job satisfaction, ordinary least square and ordered logit
regression models were employed to test the significance of the stated relationship. The
independent variables (perspective on skill development) were divided into perspectives on
learning and training whereas the dependent variable was defined as the level of job satisfaction.
The variables were collected and transformed into five-point rating scales. Finally, the test results
from two models revealed that both learning and training significantly correlated with the level of
job satisfaction of Thai industrial laborers. To be more explicit, perspectives on learning positively
affect the level of job satisfaction in a greater magnitude than training.

Keywords: Skill Development, Job Satisfaction

Introduction

In general, industrial sector is goods-producing segment of an economy, which comprises

agriculture, construction, fisheries, forestry, and manufacturing. The industrial sector has played a
 2

significant role in Thai economy for decades. As for Thailand, there are 4 primary types of industry.
Size wise, Thailand’s Ministry of Industry (2015) stated that Automobile was reckoned as 23.1%,
Electronic16.9%, Agriculture32.7%, and Hospitality & Tourism 27.3%. The industrial subsectors,
which substantially contribute to the national income of Thailand and economic growth, are food
processing, automobiles, electronics, and petrochemicals. The majority of industrial bases and
companies are situated in the Central Region (mainly Ayutthaya province) and the Eastern Region
(primarily Chonburi and Rayong provices) of the country. On average, employees in the industrial
sector are accounted as 15 percent of the overall Thai labor force. When separating Thai economy
into 3 main sectors namely industrial, agricultural, and service sectors, the industrial sector
approximately reveals the highest level productivity as compared with other sectors considering
the number of laborers employed.

There have been initiatives trying to educate laborers in the industrial sector of Thailand.
Under the Ministry of Labor, Department of Skill Development was established with the main
responsibilities to: 1) improve the skills of Thai labor to meet with international standards and the
need of labor market; 2) support and develop individuals and businesses regarding labor training
systems; 3) coordinate with the governmental and private sectors to take part in skill development;
4) develop the national workforce plan and act as the information center concerning skill
development (“Department of Skill Development” 2016). Training centers are located in almost
every province all over the country. The training courses are, for instance, cooking, bricklaying and
rendering, automobile repair and maintenance, electric circuit connection, handcrafting, leadership,
impression management, and language training. Most training courses aim to provide learning
opportunities to low-skill workers who cannot get access to costly training programs provided by
private training institutions.

Whilst statistical data well describe the prominence of the industrial sector in Thailand,
perceptions of laborers in this sector towards skill development and the level of job satisfaction
have been rarely discussed among Thai labor authorities and academic arena. This paper aimed to
investigate and analyze the underlying relationship between perspectives on skill development and
the level of job satisfaction of laborers in industrial sector of Thailand. As perspectives on skill
development were separated into learning and training, this study hypothesized that both learning
and training positively correlated to the level of job satisfaction. 600 industrial workers from
automobile, agriculture, electronic, and tourism and hospitality sectors were asked to respond to
five-point rating scale questionnaires. To analyze the relationship among variables, ordinary least
square (OLS) and ordered logit regression models were utilized.

This paper is organized as follows: section two reviews the literature relating to job
satisfaction and essential factors which contribute to job satisfaction. Section three demonstrates
data and methodology. Section four provides empirical results of the study and also discusses the
results. At last, section five illustrates conclusions and management implication.

Review of Literature

Skill Development
 3

Learning is the process of absorbing information and preserving it with the goal to increase
proficiencies in order to achieve personal aspirations. Learning is the process we go through as we
need to be equipped for non-specific and unexpected situations and the two are not mutually
exclusive. While we learn to do something specific, we are also inadvertently equipped with the
knowledge and/or skills to face future challenges. In brief, learning is all about equipping a person
to tackle not just today's issues, but preparing him/her to creatively be able to tackle tomorrow's
issues (Huczynski and Lewis 1980).

Training on the other hand focuses more on the development of new skills or skill sets that
will be used. Training is the process for new employees to go through when joining a company to
learn how to carry out the day-to-day operations, know how their departments work and how job-
specific tools operate in order to carry out their responsibilities. In short, through training, we are
not looking to reshape the behavior of an individual. Rather, the point is to teach the employee or
learner how things are done so that they can then carry out a process on their own (Kuchinke 1995;
Lim and Morris 2006).

Skill development (learning and training) is needed in organizations because it makes

employees more respected to organizations by out spreading their skills and knowledge, modifying
attitudes towards job and changing patterns of behavior in the organization. Managers should find
out what it is that employees do not understand and how it can be improved. Untrained workers
could make mistakes and might not deliver quality service to customers, which might negatively
affect the overall organizational performance (Scheers and Botha 2014). Likewise, the quality of
training and performance assessment could influence workers’ performance especially in the
service sector. It was believed that ample skill development could enhance productivity and
bridged the gap between company performance and industry productivity standards (AL-Sinawi,
Piaw, and Idris 2015). As well as in the social development sector, training humanitarian aid
workers to attain the skills essential to succeed in disastrous situations was important. Sufficient
skill development could make them better prepared for the potential unexpected and unknown
situation (Tint, McWaters, and van 2015).

Skill development impacts several dimensions of human resource management. For

instance, a research paper was conducted in health-care sector to explore the relationship between
skill development and employee engagement. Particularly, the results revealed that better learning
opportunities directly raised the level of work engagement among health-care service employee
(Sarti 2014). In Malaysia, a study on the association between employees’ perception on training
and their organizational commitment was performed using 60 educators of a public university. The
study results expressed that training accessibility, learning motivation, training benefits, and
supports from both supervisors and colleagues directly impact the affective and normative
organizational commitments (Bashir and Long 2015). Additionally, personal skill development
incorporated with knowledge management affected organizational performance as a research
paper demonstrated that the better degree of knowledge management, properly interceded by the
management guidance, would increase the level of organizational performance (Zumitzavan 2014).
In Canada, multiple surveys were conducted on employees the information technology (IT) sector.
Based upon Human Capital and Social Exchange Theories, the study results found a positive
 4

correlation between satisfaction with training and development and employee’s functional
retention. As training and development satisfaction increases, functional retention of employees
was expected to rise accordingly, and vice versa (Renaud et al. 2015).

Factors Affecting Job Satisfaction

Job satisfaction was defined as a pleasurable or positive emotional state resulting from the
appraisal of one's job or job experiences (Lock 1976). Additionally, job satisfaction was described
as attitudinal construct which indicates job assessment of a person (Illies and Judge 2004). From
the given statements, it is reasonable to infer that job experience of each person impacts job
satisfaction. It was evident that positive experience at work enhanced the level of worker’s job
satisfaction. However, negative experience at work tended to create job dissatisfaction. A number
of scholarly articles have mentioned various factors which influence the level of job satisfaction.

In India, a study was undertaken to find the relationship between employee engagement
and job satisfaction of 101 female workers at IDEAL Fastener India Private Limited (Valliappan and
Preethi 2015). The results from correlation and regression analyses demonstrated that the
employees who were strongly engaged expressed high level of job satisfaction, which implied that
job satisfaction could result in employee engagement and vice versa. Moreover, in China, a research
paper was conducted to study the relationship between perceived organizational support and job
satisfaction of employees (Mayes et al. 2016). It was evident in this study that perceived
organizational support directly impacted the Chinese worker’s level of job satisfaction. In academic
arena of Australia, the academic work environment survey of 1,041 academicians was conducted
(Winter and Sarros 2002). The results indicated that positive work environment such as
supportive leadership, clear roles and tasks, and challenging work would enhance the level of
workers’ job satisfaction and, therefore, help educational institutions to reach their goals.
Moreover, professional development also contributed to job satisfaction (Atefi, Abdullah, and Wong
2016). Therefore, worker’s job satisfaction turned out to be an essential aspect influencing
employee’s turnovers and overall organizational performance (Ton and Huckman 2008) in all
sectors. On the flip side, negative experience at work may result in job dissatisfaction. Schedule
inflexibility (Albrecht et al. 2016), unpleasant organizational climate such as gender harassment
(Muhonen 2016), unreasonable wage rate, and job insecurity (Chadi and Hetschko 2016) adversely
influenced the level of job satisfaction and staff turnover.

Other than organizational climates, a few scholars have also demonstrated the relationship
between individual demographics and the level of job satisfaction. In Sweden, a study was
implemented in the universities to examine the incidence of gender harassment and its association
with job satisfaction among female and male academician (Muhonen 2016). The results exposed a
greater degree of gender harassment associated with women rather than men and hence
demonstrated a variation in job satisfaction among genders. Additionally, Spanish researchers
investigated the impact of worker’s education on various aspects of job satisfaction (Vila and
García-Mora 2005). This research found that the impact of the level of education on job satisfaction
differ, both in size and direction, with regards to job attributes and worker’s characteristics. Lastly,
the level of job satisfaction may vary according different nationalities and ethnicities (Ketkaew and
Naruetharadhol 2016a). Eighty foreign educators working at schools, English tutorial schools, and
 5

university in Thailand participated in rating their level of satisfaction on compensations provided

by Thai educational institutions. The statistical results significantly demonstrated different degrees
of job satisfaction among diverse nationalities and ethnicities. In addition, the correlation between
the strength of one’s national currency and individual level of job satisfaction may help explain this
phenomenon. Moreover, work environment that involves different ethnicities and nationalities
may impact employee satisfaction. Also in Thailand, a study on the local attitudes towards low-
skilled migrant workers revealed that, as for low-skilled labor market, Thai workers particularly
the female were concerned about labor market competition and foreign workers being disease
carriers. In turns, this perception could adversely affect job satisfaction of the local people on
average (Ketkaew and Naruetharadhol 2016b).

Skill Development and Job Satisfaction by Sectors

Quite a few scholarly research papers have explored the relationship between skill
development and workers’ job satisfaction. Interpretations of this relationship vary according to
the researchers’ interests and theoretical frameworks. In the medical sector, a study of training,
satisfaction, and turnover was conducted using workers from several plastic surgery clinics as a
sample (Nassab 2008). The results showed that new plastic surgery workers who were satisfied
with training tended to be satisfied with their jobs and continue to pursue their careers in plastic
surgery area, and vice versa for those who were dissatisfied training. Additionally, a similar study
in the educational sector revealed similar results. Besides academic support and organizational
acceptance, skill development had played a crucial role to positively impact educators’ level of job
satisfaction (Prawatrungruang et al. 2010). Lastly, in the construction sector, a study employing
150 workers was conducted to explore factors related to sustainable human resources
management which impacted their levels of job satisfaction. Similarly, other than safety provision,
health benefits, and reasonable remuneration policy, skill development tended to play an important
role to enhance workers’ job satisfaction, and hence influencing their productivity (Amusan et al.
2014). Nevertheless, to the best of the authors’ knowledge, there has not been any paper directly
investigating the effect of skill development on job satisfaction by classifying skill development in to
two aspects, namely learning and training. Furthermore, there has not been any study on skill
development and job satisfaction placing an emphasis on laborers in the industrial sector. In other
words, using factory workers residing in the countryside industrial locations across Thailand as a
sample, it is expected that a better insight of industrial workers in the developing world just as
Thailand will be expressed meaningfully in this paper.

Methodology

The data used in this study were initially collected for a larger survey conducted by
research assistants (names listed in acknowledgement section). Participants were industrial
workers from automobile, agriculture, electronic, and tourism and hospitality sectors from different
geographical regions of Thailand, namely the Central, North, East, West, South, and North-East.
Prior to each data collection, to address issues regarding confidentiality, participants were
informed of the confidentiality agreement and the purpose of this survey. Stratified Sampling
method, where gender was the stratum, was employed as a sampling technique in this research.
Due to the current proportion of male and female population in Thailand, it is reasonable enough to
 6

assign the ratio of male-to-female as 40%-to-60% accordingly (“Thailand Demographics Profile

2016” 2016). In total, 628 participants were successfully interviewed for the larger survey.
However, in this study, only the valid data from 600 participants were utilized. Selected
participants were those who took part in skill development sessions offered at the regional training
centers or by their companies within six months up to the interview date. Table 1 provides the data
regarding socio-demographic characteristics of the selected participants.

Table 1: Socio-demographic Characteristics of Participating Industrial Workers

Classification Frequency %
Gender Male 240 40
Female 360 60
Total 600 100
Age 20-25 96 16
26-35 294 49
36-45 162 27
More than 45 48 8
Total 600 100
Education Secondary school 102 17
High school 165 27.5
Diploma 174 29
Bachelor’s Degree 147 24.5
Higher than Bachelor’s Degree 12 2
Total 600 100
Income Below 9,000 Bath 72 12
9,000-12,000 Bath 192 32
12,000-15,000 Bath 210 35
15,000-18,000 Bath 54 9
Above 18,000 Bath 72 12
Total 600 100
Hometown Central 72 12
North 30 5
East 282 47
West 30 5
South 24 4
Northeast 162 27
Total 600 100
Industrial Sector Automobile 138 23
Agriculture 198 33
Electronic 102 17
Tourism and Hospitality 162 27
Total 600 100
 7

Additionally, to represent laborer’s perspectives on skill development, participants were

asked to rate the level of knowledge they had gained from both learning and training separately
using five-point Likert Scale: where 1 = very low, 2 = low, 3 = medium, 4 = high, 5 = very high
(Likert, Roslow, and Murphy 1934; Hadley et al. 1999). In practice, prior to the interview, it was
necessary that the research assistants educated participants the differences between learning and
training (as mentioned in review of literature section). At present, most skill development sessions
offered by Department of Skill Development under the Ministry of Labor of Thailand embrace both
learning and training. Moreover, those industrial workers were asked to rate the level of job
satisfaction also based on five-point Likert Scale. The following table illustrates some statistical
measures of the collected variables.

Table 2: Data Descriptive Statistics

Variable Min Max Mode Mean SD

Perspective on Learning 1 5 2 2.45 1.16
Independent
Perspective on Training 1 5 3 2.82 0.99
Dependent Job Satisfaction 1 5 3 3.15 1.01

To begin analyzing the data, paired-sample t-test was employed to investigate the
differences between the means of “perspective on learning” and “perspective on training.” This
process was implemented in order to confirm that the means of perspective on learning and
training were significantly different in statistics, which in turn allowed a comparison afterwards.
The following test hypothesis was assumed.

Null Hypothesis (Ho): µlearning = µtraining and Alternative Hypothesis (Ha): µlearning ≠ µtraining

Next, to analyze the relationship between perspectives on skill development and job satisfaction of
Thai industrial workers, ordinary least square (OLS) and ordered logit regression models were
utilized (Campbell and Donner 1989). Cross-sectional data of individual workers were regressed
using two separate models to confirm the validity of statistical results. In both models, perspective
on learning and training were assigned as independent variables whereas job satisfaction was
placed as dependent variable. The formulated regression equation was as following:

Job Satisfaction = β0 + β1Learning + β2Training + error

Results and Discussion

The following tables exhibit the research findings. First, t-test result was revealed in Table
3. Table 4 illustrated the regression results from OLS model, whereas ordered logit regression
results were expressed and described in Table 5.
 8

Table 3: Paired-Sample t-test; Mean Differences between Perspective on Learning and Training

Mean Differences t p
Learning - Training -0.37 -2.187 0.03**
**significant at 5% level

According to Table 3, the t-test result revealed a significant difference between the means of
industrial worker’s perspectives on learning and training (p = 0.03 < 0.05 significance level). As
referred to Table 2, it was logical to conclude that the mean worker’s perspective on training was
greater than their mean perspective on learning in value (2.82 > 2.45); which implied that Thai
industrial workers felt that the degree of knowledge achievement was higher when they
participated in training sessions provided by either the training development centers or their own
companies. With regards to perspectives of workers especially in the industrial sector, this result
proposed the importance of perceived training over perceived learning, which in turn contributed
to supplementary awareness in the area of human resources development in this sector.

Table 4: OLS; 600 Observations; Dependent Variable: Job Satisfaction

Coefficient Std. Error t-ratio p-value

Const 1.72256 0.267076 6.4497 <0.0001 ***
Perspective on 0.439372 0.0584705 7.5144 <0.0001 ***
Learning
Perspective on 0.15315 0.0620789 2.4670 0.0139 **
Training
***Denotes significant at 1% level; **significant at 5% level

Table 5: Ordered Logit Regression; 600 Observations; Dependent Variable: Job Satisfaction
(Standard errors based on Hessian)

Coefficient Std. Error z p-value

Perspective on 0.859311 0.111185 7.7287 <0.0001 ***
Learning
Perspective on 0.316156 0.113678 2.7812 0.0054 ***
Training

cut1 0.516531 0.516634 0.9998 0.3174

cut2 1.81918 0.49888 3.6465 0.0003 ***
cut3 3.31593 0.508284 6.5238 <0.0001 ***
cut4 5.25661 0.536694 9.7944 <0.0001 ***
***Denotes significant at 1% level; **significant at 5% level

According to Table 4 and 5, the results from OLS and ordered logit regression models were
consistent with each other. The OLS model (Table 4) demonstrated that both industrial worker’s
perspective on learning (p < 0.0001 < 0.01 significance level) and training (p = 0.0139 < 0.05
significance level) positively correlated with the level of job satisfaction. Considering coefficients of
the OLS model, perspective on learning tended to impact job satisfaction in a greater magnitude
relative to perspective on training (0.439 > 0.153). Similarly, the ordered logit regression model
(Table 5) also confirmed the findings based on OLS model. Perspective on learning (p < 0.0001 <
 9

0.01 significance level) and training (p = 0.0054 < 0.01 significance level) significantly correlated
with job satisfaction. As industrial worker’s perspective on learning and training increased, the
level of job satisfaction would also increase, and vice versa. However, perceived learning was able
to create a greater impact on job satisfaction as compared with perceived training (see coefficients:
0.859 > 0.316). Subsequently, perspectives of Thai industrial workers on skill development as
represented by learning and training positively influenced their level of job satisfaction, which was
consistent with the previous literature (Nassab 2008; Prawatrungruang et al. 2010; Amusan et al.
2014).

In contrast to previous literature, this research paper primarily found that perceived
learning could affect the level of job satisfaction by a larger degree compared to perceived training.
Explicitly, learning aims to lay essential foundations such as sufficient knowledge and proper
attitude to learners, which are the key elements that would later enhance the level of job
satisfaction. Although learning demonstrated a stronger impact on the level of job satisfaction, the
importance of training should not be left behind because Thai industrial workers perceived that
training could supply better knowledge and benefit their career in the long term.

Conclusion and Management Implication

In this research paper, we tried to investigate the association between skill development
perspectives and job satisfaction of Thai laborers in the industrial sector across the Kingdom of
Thailand, involving automobile, agriculture, electronic, and tourism and hospitality sectors. We
classified worker’s perspectives on skill develop into two primary aspects: “perspective on
learning” and “perspective on training.” Stratified sampling technique was employed to collect 600
samples using gender as stratum. We started the data analysis by paired-sample t-test in order to
distinguish the difference between the means of perspectives on learning and training. Next, we
used OLS and ordered logit regression models to identify the relationship between perspectives on
learning and training and the level of job satisfaction of Thai industrial workers. The results of this
study demonstrated that Thai industrial workers perceived training to be more beneficial than
learning. However, both regression models suggested that, as learning and training positively
correlated with the level of job satisfaction, industrial worker’s perspective on learning could
impact their level of job satisfaction in a greater magnitude.

To manage human resources in the industrial sector, the management should bear in mind
that, although worker’s satisfaction is an important element for managing people in the
organization, it is not the ultimate goal of the successful organization. Rather, it is believed that
worker’s satisfaction would bring about employee engagement within the organization (Sarti 2014;
Valliappan and Preethi 2015) and would then indirectly augment employee contribution, which
might influence employee’s turnovers and the overall organizational performance (Ton and
Huckman 2008). Since learning plays a critical role in developing foundations and awareness of the
related professional tasks, it is recommended that the management design the study contents that
involve organizational values and cultures besides the subject matters associated with jobs
themselves. Acknowledging organizational values and cultures along with the knowledge of work
tasks may help low-skilled industrial workers recognize the importance work tasks and
organizations at the same time. Additionally, training should not be left behind because the aim of
 10

training is to provide simulated or on-site practical experiences. This is when industrial workers
could explore the physical aspects of their tasks. Therefore, it is essential for the management to
assess the training needs within the organizations in order to improve worker’s job satisfaction and
organizational effectiveness (Moynihan and Landuyt 2008). Lastly, it is recommended that skill
development sessions should engage both learning and training because each element is important
within itself. As for the future research, it is interesting to investigate the impact of industrial
worker’s perspectives on learning and training on job performance. Doing so, we believe that the
significance of skill development in the human resources development arena should be explained
more meaningfully.

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