UNIVERSITI TEKNOLOGI MARA

PERCEPTION OF PROVIDING TRAINING

FOR COMMERCIAL VEHICLE DRIVER

AMONG SMEs LOGISTICS COMPANIES

MUHAMMAD AZRI BIN MD HASSAN

Thesis submitted in fulfillment of the requirements for the degree of

Master of Science

Malaysia Institute of Transport

August 2015

CONFIRMATION BY PANEL 0F EXAMINERS

I certify that a Panel of Examiners has met on 2"d October 2014 to conduct the final examination of Muhammad Azri bin Md Hassan on her Master of Science thesis entitle Perception of providing Training for Commercial Vehicle Driver Among SME Logistics Companies in accordance with Univelsiti Teknologi MARA Act 1976 (Akta ‘73). The

Panel of Examiners recommends that the student be awarded the relevant degree. The

panel of Examiners was as follows:

Prof. Dr. Saadiah Yahya Director of Malaysia Institute of Transport Universiti Teknologi MARA (Chairman)

Dr‘ Siti Zaharah Ishak Head Centre for Public Transport & Sustainability Development Malaysia Institute of Logistics and Transport University of Mara 40000 Shah Alam (Internal Examiner)

ProfiIrDLMohamed Rehan Karim Drirector, Center for Transportation Research (CTR) Faculty of Engineering, University of Malaya 50603 Kuala Lumpur (External Examiner)

SITI HALLIJJAH SHARIFF, Phd Associate Professor Dean

Institute of Graduates Studies

University Teknologi MARA Date: 6‘“ August, 2015

ABSTRACT

Commercial vehicle drivers are the from lines for commercial logistics that ensure safe

delivery of goods. When the growing logistics industry in Malaysia and served mostly by SMEs, the training needs of drivers may not be priority than resulting in poor work performance of drivers reflected by many problem that arise due to these drivers.

Training, one of the elements in Human Resource should be provided by the SME Logistics Company. The objective of the study are (1)10 identify the current situation in training for commercial vehicle drivers among SME logistics companies in Selangor (2) to examine the factors that can influence driver’s training among SME logistics companies in Selangor and (3) m analyse the most determinant factors affecting driver‘s training among SME logistics companies in Selangor. The study was conducted by a

quantitative survey where questionnaire distribution to 226 managels of SMEs logistics companies in Selangor and only 110 of the respondents have given feedback. A conceptual framework was developed based on the extensive literature. This empirical research explored the relationship of independent variable with training needs. The three

main variables being studied includes same dimensions that were grounded theory, such

as '

return, r ‘

career ‘ ‘ of the company. The

relationship between the three valiables showed different significanoe. The variables are

significant for economic return of the company and driver's training. But the variables of personal career development and reputation of company it shows there no significance between acceptance of driver training with personal career development of drivers and

company’s reputation.

TABLE OF CONTENTS

CONFIRMATION BY PANEL 0F EXAMINERS

AUTHOR’S DECLARATION

ABSTRACT

ACKNOWLEDGEMENT

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF ABBREVIATIONS

CHAPTER ONE: INTRODUCTION

1.1

1.2

1.3

L4

1.5

1.6

1.7

Research Background

Background of Study

1.2.1 An Overview of Training

122 Role of Commercial Vehicle Drivers and Issues

1.2.3 An Overview of Training for Commercial Vehicle Driver

Among SMEs Logistics Company

Research Problem

Research Question

Objectives

Scope of Study

Limitation of the Study

1.7.1 Difficulty in Finding Information and Data

1.7.2 Time Constraint

L73 Lack of Experiences in Related Field of Research

Significance of the Study

l,8.1 To the industry

1.8.2 To the company

vi

Page ii

iii

vi

xi

xii

xiii

mt

(2000‘

CHAPTER ONE

INTRODUCTION

1.] RESEARCH BACKGROUND

Logistics started to grow in business and trading market since the early 1950’s.

The complexity of the logistics industry is increasing with regard to material and

shipping process (Blumberg, 2004). Transpomm'ou of goods fi-om business supplier

throughout the world needs to be handled by experts known as “expert logisticians”.

Through the development of the logistics industry, many extemal organizations have

taken the responsibility of transponing goods fi’om businesses towaxds the customer. As

an emerging business area in various countries, transportation and logistics are needed for

its vital importance for growth and developments According to a study by Louie (2004),

the importance of the local logistics industry is m improve the quality of logistics and

transport systems by reducing cost and improving imemational market amass. That will

directly lead to increased number of tradfi and through this, we can expect higher

incomes and significant reductions in poverty. Despite two decadac of improvement,

Malaysia has significantly scope for further reducing its transport and logistics costs.

In the early 1960s, the Malaysian economy focused towards ago-based industries

such as planting mbber, pepper, palm oil and timber (Rahman, 1998). GDP increased by

14.8% in 1970s, contributed by the manufacturing sector. The growth of manufacturing

sector in Malaysia began in the sixties and accelerated by: (l) the introducfion of the

Investment Incentives Act, 1968 and (2) promotion of the the trade zones (FTZ) in 1971.

These incentives manage to attract numerous multinational corporations (MNC) to

establish export oriented operations, The development of manufacturing industry in

Malaysia has affected the Malaysian logistics industry Malaysia had its own first

operating port in the 1970’s 31 Port Klaus and from that time, it had contributed to

numerous changes to the economy.

The demand for efl'lciency and effecfiveness of transponafion and logistics

services are increasing yea: by year (Andersson, 2002). This is because the trade among

1