AN EMPIRICAL INVESTIGATION OF WHETHER BUSINESS GRADUATES FROM AN OPEN LEARNING SYSTEM CAN MEET THE DEMAND OF THE PRIVATE SECTOR FOR QUALIFIED MANPOWER

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1 AN EMPIRICAL INVESTIGATION OF WHETHER BUSINESS GRADUATES FROM AN OPEN LEARNING SYSTEM CAN MEET THE DEMAND OF THE PRIVATE SECTOR FOR QUALIFIED MANPOWER Dr. Jassim Al-Fahhad Assistant professor Arab Open University, AOU KWB Faculty of Business Studies Dr. Ahmad A. Alfadly Assistant professor Arab Open University, AOU KWB Faculty of Business Studies Abstract As alternative approaches to conventional teaching, open and distance learning systems have been adopted widely worldwide. The literature on higher education has witnessed the emergence of pedagogical debates over whether the outputs of such systems are comparable to those of conventional ones in respect to quality, knowledge and skills. The present study is intended to theoretically contribute to this emerging theme of debate and is practically evaluative in nature. It is launched on the premise that private sector employers are the most eligible to answer the question around which the essence of the debate revolves. Therefore, the primary aim of this study is to assess whether the graduates from the Business Administration program at the Arab Open University (AOU) - Kuwait branch - have the potential to meet the demands of the private sector employers for competent personnel. To achieve this purpose, a random sample of all graduates from AOU BA program who presently hold full-time jobs in private firms has been selected. A questionnaire had initially been developed to serve as an instrument for data collection purpose, and then it was sent to the direct superior of each of the selected graduates. The questionnaire focused on measuring the overall satisfaction with the graduate performance, COPY RIGHT 2012 Institute of Interdisciplinary Business Research 592

2 the managerial qualities of the graduate and the perception of the perception of AOU. The most interesting finding of this research is that nearly 86% of the employers were either highly satisfied or satisfied with the performance of the AOU graduate in their organizational unit. Other results of the study showed that about 73% of the subjects agreed that they would recommend AOU as an academic institution for others and that a similar percentage of the participants believed that the quality of education that AOU provides contributed greatly to the outstanding performance of their employees. Keywords: AOU, open learning, distance learning,job performance,job evaluation, private sector. Introduction Education is a crucialfactor in the nation s development and prosperity. It promotes economic and social growth, national productivity and innovation. It is also known as a powerful instrument to reduce poverty and inequality (World Bank, 2011). Educational institutions, particularly higher ones, play a substantial role inthe development and enhancement of theindividuals.as Shapiro stated " All higher education institutions, both public and private, both non-profit and for-profit, and for state collages to research universities to community colleges to a wide variety of technical and professional schools, serve a public purpose" (Shapiro. 2005, p.1). This public purpose services range from educating individuals, serving local communities and promoting research and development activities. Yet, workforce development is an important role played by higher education institutions (Pyle and Forrant, 2002). Education institutes have the responsibility to ensure that their graduates are adequately fit to and can contribute fully to the industry. According to Stasz, et al (2007) the pattern of occupational demand favours individuals with some post-secondary education supplemented COPY RIGHT 2012 Institute of Interdisciplinary Business Research 593

3 with more-specific job training. This is equally applicable to all education disciplines, particularly business studies which are the focus for this study. Business schools are considered as key influential institutions in contemporary society, as they heavily influence the way much socioeconomic activities are conducted (Morsing, 2011). Canals (2009) stressed that business school programs have positive effects which are evident through the lives of many successful entrepreneurs and firms. Business schools have contributed to job creation and innovation, both in developed and developing countries (ibia). However, several authors have criticized the role of business school today and argued that business schools today are not offering students what it takes to secure occupations. In their article "What Are Business Schools Doing for Business Today" David and David (2010) attempted to answer the question: "Are business students learning what employers need?"through the examining of disparity between business school focus and business community needs. The term ivory tower came to symbolize the failure of business schools to adequately provide what the business world needs (David and David. 2010, p.3). The authors concluded that an on-going gap between what is being taught in business schools compared to what is actually needed by companies. Bennis and O Toole (2005) argued that business programs face intense criticism for various reasons, among which is failing to convey useful skills, failing to prepare leaders, and failing to lead graduates to good corporate jobs. This study was drawn up on this controversial argument. The aim of this study is to explore how the business graduates of the Arab Open University (AOU) are adequately prepared to meet the demand and the standard of the industry.a thorough search of the literature revealed no evidence of studies evaluating the performance of the AOU's business graduates at their working environment. Thus, it is imperative to embark on a study to address this gap by investigating the COPY RIGHT 2012 Institute of Interdisciplinary Business Research 594

4 effectiveness of the Business Studies graduates in contributing to their working environment, with particular focus on Kuwait Branch. An overview With over than 250,000 students currently registered,the Open University (OU) is the UK s largest university (Student Guide, 2010). OU, which is established in 1969, offers more than 600 coursesleading to around 250 qualifications. It is the world s leading provider of flexible education. OU is distinguished by a non-campus-based university. It provides a moderndistance learning education enabling students to pursue their qualifications at their convenient time and location. The OU has established educational partnerships around the global. The Open University Validation Service (OUVS) offers national and international approval and validation service. OUVS validates higher education programs offered by institutions which do not have their own degree-awarding power. Presently, OUVS has more than 30 institutions approved worldwide(ibia). The Arab Open University (AOU) is one of the OU'slargest partners which is approved and validated by OUVS. The AOU is a non-profit organisationestablished in 2002 and supported by the UNESCO and Gulf Countries governments. Currently, AOU has 7 branches in the Arab world; Kuwait, Saudi Arabia, Egypt, Jordan, Lebanon, Bahrain and Oman. Based on the local higher educational authority regulations, the open learning platform proposed at the AOU is somehow differ than that proposed by OU. AOU applies a form of distance education with added enhancements for quality education. Unlike education by correspondence, whose main drawback is the lack of lectures and faculty-student interaction, the AOU open learning platform relies heavily on the tutoring process that aims, in turn, at promoting a proactive environment of learning (Al-Atiqi, Alharbi and Ali, 2002). COPY RIGHT 2012 Institute of Interdisciplinary Business Research 595

5 Presentlymore than 34,033students enrol in AOU s seven regional branches, among which 4887 have graduatedfromthe Faculty of Business Studies. Faculty of Business Studies (FBS) is one of five faculties administrated by AOU. It offers a blended learning through the full spectrum of business and management education, options from single courses through to bachelor s and, master s degrees. The prime objective of FBS is to "Provide students with the knowledge to succeed in their chosen field and ensure the development of skills in problem solving, ethical decision making, communications, teamwork, and leadership. In addition, to increase students' abilities and confidence to handle managerial, financial and administrative activities. FBS offers bachelor degree (BA) in Business Studies in five tracks: Systems Practice, Accounting, Economics, Marketing and Management. These tracks have been validated through a process of external peer review by OU as being of an appropriate standard and quality to lead to the OUVA award. Each degree comprises credit hours (as per local accreditation requirements) which can be completed over a four-year period of full-time study. Methodology As stated earlier, the focus of this study was on graduates of Kuwait Branch 9. At this branch the total number of students who accomplished their degree is 4436 among which 1312 have earned their degree in Business Studies. The majority of these graduates are employed in Kuwait private sector, hence, it is expected that by 2020, one out of five persons in the Arab world will know someone who is a graduate student of the AOU (Abdin and Omer, 2010). Nasreddine (2010) argues that; there are lots of people working in Kuwait private sector from 1990, and we can understand that it is increased considerably; the rate of increase is rather 9 This Branch where both authors are currently employed as a full time tutors. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 596

6 exponential. The number increases from a little over 200 to about in a period of 17 years, that s a 6000% increase. 1.1 Research Objective The main objective of this study is to address the gap currently presented in the literature pertaining the assessment of the effectiveness of AOU business graduates in fulfilling private sector demands, as it is a critical indicator of the quality of the educational services. 1.2 Research Questions It is right for conducting this specific research assignment to start with the framing of research questions that would determine the general direction of this research effort. The researchaddresses around two questions: 1. To which extent AOU business graduates have the priority in employment among private sector organizations? 2. How the AOU business graduates are performing in private sector organization? 1.3 Research Methodology At the initial stage of the research, a pilot study of qualitative approach was carried out. An educational expert panel was formed. It was consisted of various academic expert members (internal and external of AOU), alongside with some graduates and senior students. The objective of the panel is to determine Answers in the pilot study were used for the development of a quantitative questionnaire. Thereby, those experiences or expectationsthat the panel considered important in the interviews are included in the questionnaire. The research methodology follows a quantitative approach. Conversely, due to the nature of study, this has not been examined previously in the country. Quantitative research method is useful as it helps the researcher to prevent bias in gathering and showing research data. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 597

7 Quantitative data collection measures create epistemological postulations that actuality is objective and unitary, which can only be realized by means of transcending individual viewpoint. This phenomenon in turn should be discussed or described by means of data analysis gathered during objective forms of measurement.the research was conducted in order to determine the effectiveness of AOU business graduates in fulfilling private sector demand. In order to respondto these research goals, the researcher selected to obtain the view of students and employees in line with this topic. Specifically, a total of 332 graduates and employeesfrom AOU-Kuwait Branch were randomly selected to make up the sample. Selected participants answered a survey questionnaire. Data gathered from this research tools were then computed for interpretation. Along with primary data, the researcher also made use of secondary resources in the form of published articles and literatures to support the survey results. The research finding For employee s survey and according to the result of this study Table (1), the Perception of AOU and the Managerial Qualities of AOU were found to be two independent factors. Cronbach Alpha coefficients were found to be.719 and.711 for the Managerial Qualities of AOU and the Perception of AOU, respectively. In this study dispositional affectivity measures were taken from the Employee Survey. In this study, reliability coefficients for all study items were for the Perception of AOU and Managerial Qualities of AOU. Table (1): Cronbach Alpha for Employee Survey A Section Cronbach Alpha 1. The managerial qualities of the AOU business.719 graduates from the organizations point of view. 2. The perceptions of the organization toward AOU.711 business graduates. Overall.849 COPY RIGHT 2012 Institute of Interdisciplinary Business Research 598

8 High quality tests are important to evaluate the reliability of data supplied in an examination or a research study. Alpha is a commonly employed index of test reliability. Alpha is affected by the test length and dimensionality. Alpha as an index of reliability should follow the assumptions of the essentially tau-equivalent approach. A low alpha appears if these assumptions are not meet. Alpha does not simply measure test homogeneity or unidimensionality as test reliability is a function of test length. A longer test increases the reliability of a test regardless of whether the test is homogenous or not. A high value of alpha (> 0.90) may suggest redundancies and show that the test length should be shortened. Table 2: Cronbach Alpha with its Internal Consistency Cronbach's alpha Internal consistency α 0.9 Excellent 0.8 α < 0.9 Good 0.7 α < 0.8 Acceptable 0.6 α < 0.7 Questionable 0.5 α < 0.6 Poor α < 0.5 Unacceptable The procedure is repeated again for Students survey, the following results were conducted to describe the reliability of the student s feedback for the questionnaire: Table 3: Cronbach Alpha for Students Survey B Section Cronbach Alpha 1. Personal Evaluation Being an AOU graduate AOU Evaluation.859 Overall.771 For Students survey and according to the result of this study Table (3), the Personal Evaluation of AOU graduated students, Being an AOU graduate and AOU graduated Evaluation were found to be three independent factors. Cronbach Alpha coefficients were found to be.866,.837 and.859 for Personal Evaluation of AOU graduated students, being an AOU graduate and AOU COPY RIGHT 2012 Institute of Interdisciplinary Business Research 599

9 graduated Evaluation respectively. In this study dispositional affectivity measures were taken from the students Survey. In this study, reliability coefficients for all study items were for the Perception of AOU and Managerial Qualities of AOU. So, from table 1, and table 3, the reliability test for both surveys is acceptable for the statistical analysis of the survey s respondents. Now it is important to measure the internal consistency of survey feedback between the items to show that there are internal consistency and correlations between the study items. To measure the internal consistency of a measuring instrument, the split-half reliability method is applied by splitting the test into two halves thereby obtaining the correlation between the two halves (Cohen &Swerdlick, 2002). Smith et al. (1969) calculated the split-half coefficients for the subsections of the study factors by applying the Spearman-Brown formula. The results obtained ranged between and.775 (Appendix A) for the employee survey. The process was repeated again for the students survey, by applying the Spearman-Brown formula, the results obtained ranged between and.606 (Appendix B) for the Students survey. By the end, it is very clear from the above tables that there is accurate reliability and internal consistency for the feedback that collected to measure the research findings about the factors of AOU graduated performance in their job. Correlations: Survey A (Employees Survey): This part is about showing up how is the correlation describes the study finding of employees feedback about AOU graduations. Before examining the hypothesized relationships between the variables of the study, first of all subscales were computed for each variable. In computing the scores for the subscales mean ratings were calculated. Descriptive statistics concerning the measures of interest as individual COPY RIGHT 2012 Institute of Interdisciplinary Business Research 600

10 differences variables; and task performance, contextual performance, and overall performance as subscales of job performance) are presented in Table 4. Table 4 Test of Correlations between the main variables of Employee Survey (A) ** p<.01, *** p<.001. Table 4 shows that all the study variables are significantly correlated between each other under the significant alpha level equal It appears from this table that managerial qualities have a significant positive correlation with employee performance and perception of AOU. And also, the managerial qualities have a great significant positive correlation with the overall feedback about the employee whom they are graduated from AOU with 80.3% of the satisfaction level with total mean equal For Employee performance, we found from table 4 that there are positive significant correlation with perception of AOU with 63%, and, it has also a positive significant correlation with the overall feedback about the employee whom they are graduated from AOU with 84%. In general, the employees whom they are graduated from AOU are positive intended by their managers at jobs of their managerial qualities with 80.3%, the employees whom they are graduated from AOU they are positive intended by their managers at jobs of their performance with 84% and finally, they also have a great positive significant satisfaction correlation with their perception of AOU graduations. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 601

11 Examine Study Factor using Regression analysis In this part, stepwise regression analysis has been applied to select the most important significant factors that affect to the satisfaction level of the evaluation from employee manager. Stepwise regression includes regression models in which the choice of predictive variables is carried out by an automatic procedure. Usually, this takes the form of a sequence of F-tests, but other techniques are possible, such as t-tests and adjusted R-square to check for model strength that represent the satisfaction level of AOU graduation performance. In statistics, the coefficient of determination R2 is used in the context of statistical models whose main purpose is the prediction of future outcomes on the basis of other related information. It is the proportion of variability in a data set that is accounted for by the statistical model. It provides a measure of how well future outcomes are likely to be predicted by the model. There are several different definitions of R 2 that are only sometimes equivalent. One class of such cases includes that of linear regression. In these instances, the mean of the data provides a fit to the data that is superior to that of the trend under this goodness of fit analysis. Stepwise Regression Results (Survey A) Using SPSS software, the stepwise regression has been applied for the dependent variable I am satisfied with the overall performance of AOU business graduates in my company against the independent variable that represent Managerial Qualities, Perception of AOU and Performance. The stepwise regression results are displayed by the following table: COPY RIGHT 2012 Institute of Interdisciplinary Business Research 602

12 Table 5: Stepwise regression model for manager satisfaction level to AOU Employees From Table 5, the model represent the overall performance of AOU business graduates in the company R Square of.53 means that 53% of the variation in salt concentration can be explained by satisfaction level of AOU graduates. The adjusted R Square of.53 means 53%, the entire independents variable are significant to explain the satisfaction level of the overall performance. From table 6, the highest coefficient weight in the regression model is the managerial qualities with in positive, where the second coefficient weight is perception of AOU with in negative (the more perception of AOU, the low satisfaction in the overall performance). The lowest coefficient weight in the stepwise regression model is the performance with positive, and that means, the managers are agreed that there is significant positive performance for AOU business graduates in the company. Survey B (Students Survey): This part is about showing up how is the correlation describes the study finding of students feedback about AOU graduations. Before examining the hypothesized relationships between the variables of the study, first of all subscales were computed for each variable. In computing the scores for the subscales mean COPY RIGHT 2012 Institute of Interdisciplinary Business Research 603

13 ratings were calculated. Descriptive statistics concerning the measures of interest as individual differences variables; and task performance, contextual performance, and overall performance as subscales of job performance) are presented in Table 6. Table 6: Test of Correlations between the main variables of Students Survey (B) Table 6 shows that all the study variables are very highly significant correlated between each other under the significant alpha level equal It is very clear from table 6 that the most correlated item in the study for student survey is the evaluation of the graduated students that have a significant positive correlation under alpha level equal 0.05 with the overall evaluation factor of AOU graduated student. And also, we discovered from table 5 that the correlation between personal evaluation of AOU graduated students and being an AOU graduated has the lowest significant correlation with 16.7%, and tell us, that the personal evaluation of the AOU students not only improved because they are being an AOU graduated, so there is another factors that help those students to improve their personal evaluation. Stepwise Regression Results (Survey B) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 604

14 Using SPSS software, the stepwise regression has been applied for the dependent variable I am satisfied with the overall performance of AOU business graduates in my company against the independent variable that represent Managerial Qualities, Perception of AOU and Performance. The stepwise regression results are displayed by the following table: Table 7: Stepwise regression model for manager satisfaction level to AOU Employees From Table 7, the model represent the overall at work has been improved of AOU business graduates in the company, we found that R Square equal.68 means that 68% of the variation in salt concentration can be explained by performance improvement of AOU graduates. From table 7, the highest coefficient weight in the regression model is personal evaluation with in positive, where the lowest significant coefficient weight is being an AOU graduate with in negative. The factor that is called AOU evaluation has been removed from the model and that because its p-value is greater than the significant level alpha (0.05). Conclusion The objective of this research is to investigatethe comparability of the outputs of open learning system with thoseof conventional ones in respect to quality, knowledge and skills. Based on the statistical outputs it is evident that there is a considerable demand for the AOU business graduates services, and the private sector organizations in Kuwait are satisfied with their overall performance. Such demand reflects the quality of educational services provided by AOU, as an example of open learning system. Consequently, it can fairly deduce that the outputs of open COPY RIGHT 2012 Institute of Interdisciplinary Business Research 605

15 learning system are competing with those of conventional learning systems.currently, the authors undertaking a relevant research to assess the competency of the open learning system outputs relative to those of conventional learning systems in meeting the demand of the private sector for qualified workforce. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 606

16 References Abdin M. Sharif and Omer H. Ismail (2010), Managing Time: A Study Among Arab Open University. Tutors In Kuwait Branch, College Teaching Methods & Styles Journal 2010 Volume 6, Number 1 AOU. emid=124&lang=en Bennis, W., & O Toole, J. (2005). How business schools lost their way. Harvard Business Review, May, Cathleen Stasz, et al (2007). Post-Secondary Learning in Qatar: employer Demand, Student Choice and Options for Policy. Rand-Qatar Policy Institute. David, F., & David, F. (2010). What are Business Schools Doing for Business Today. Business Horizons. Harold T. Shapiro. (2005). A Large Sense of Purpose.Princeton University Press. Imad M. Al-Atiqi, Lafi M. Alharbi, and Farida M. Ali (2002), The Evolution of Private Higher Education in Kuwait, Journal, 2002 Jean Larson Pyle, Robert Forrant. (2002). Globalization, universities and issues of sustainable human development. Edward Elgar Publishing Limited-UK. Jordi Canals. (2009). The current crisis has highlighted the need to redefine the role of senior managers in organizations. IESE Alumni Magazine. Issue 115, P MetteMorsing. (2011). Business Schools and their Contribution to Society. SAGE Publications Ltd. NasreddineSaadouli (2010), Assessing the Effectiveness of State Manpower Growth and Restructuring Programmes : The Case of Kuwait, International Journal of Management Vol. 27 No. 3 Part 2 Dec WorldBank ~menuPK: ~pagePK:148956~piPK:216618~theSitePK:282386,00.html COPY RIGHT 2012 Institute of Interdisciplinary Business Research 607

17 Appendix Appendix A: Internal Consistency Results for Employee Survey (A) AOU business graduates have a distinguished reputation among the private sector. I am satisfied with the overall performance of AOU business graduates in my company. AOU graduates have demonstrated their ability to coping with challenging environment The performance of AOU business graduates employees are distinguished related to other graduates. AOU Business graduates are well educated and enthusiasm AOU Business graduates have good problem analysis-solving skills The AOU Business graduated employees are self-motivated AOU Business graduates have good communication skill. AOU Business graduates are reliable and trustworthy. AOU Business graduates required extensive job training to cope with their responsibilities. AOU Business graduates have demonstrated their ability to work as a team. AOU Business graduates have demonstrated their ability to work under pressure AOU Business graduates have demonstrated their leadership skills. I am expecting for AOU business graduates a long-term contract with the company. AOU Business graduates are frequently eligible for promotion. I believe that AOU has greatly contributed to the outstanding performance of the AOU graduates employees AOU graduates have the priority in recruiting for any job vacancy In several occasions I express my concern with the competency of AOU graduates. I would definitely recommend AOU graduates to other organizations. Item-Total Statistics Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted COPY RIGHT 2012 Institute of Interdisciplinary Business Research 608

18 Appendix B: Internal Consistency Results for Employee Survey (A) Item-Total Statistics Scale Varianc e if Item Deleted My overall performance at work has improved significantly Corrected Item- Total Correlation Cronbach's Alpha if Item Deleted I have developed better cognitive skills I have developed better problem-solving skills I have developed better understanding of the decision making process I am able to link business theories, concept, and tools to my current work practice I am able to demonstrate better leadership skills in my work I have improved my communication skill in my work I have managed to earn the trust of my employer of the competences I am quite confident of my competences to be accountable for more complex managerial roles AOU business graduates have a distinguished reputation among the private sector I have more career opportunities in the private sector over the other universities graduates My employer relies heavily on my competences My employer has increased my job responsibilities and delegation I am expecting a long-term contract with my employer I am expecting a forthcoming promotion I was offered better position in the company My employer increased my financial package I have received a job offer from a rival company The business curriculum of AOU is informative, diversifies and well structured The business curriculum is relevant to the local business environment The multi-discipline of the business curriculum enables me to improve my performance The professionalism of the academic staff was influential to my career The background experience and enriched knowledge of the academic staff as added value to me The academic staff has successfully linked and tailed the business curriculum to the local business environment COPY RIGHT 2012 Institute of Interdisciplinary Business Research 609