Module 4 Assignment 4.1 Writing Exercise
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THE IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEES' PERFORMANCE: AN ANALYSIS OF QUANTITATIVE DATA
Article in The International Journal of Business and Management Research · February 2019
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Noble International Journal of Business and Management Research ISSN(e): 2520-4521 ISSN(p): 2522-6606 Vol. 03, No. 02, pp: 25-33, 2019 Published by Noble Academic Publisher URL: www.napublisher.org Open Access
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THE IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEES’ PERFORMANCE: AN ANALYSIS OF QUANTITATIVE DATA
Md. Mobarak Karim1, Musfiq M. Choudhury2, Wasib Bin Latif3
1*,3Department of Business Administration, World University of Bangladesh 2Department of Management, University of Dhaka, Bangladesh
ABSTRACT: Employees are the major assets of any organization. Every organizations needs well trained employees to perform the activities effectively and efficiently. It is the continuous process of the organizations that helps to develop skills, knowledge, and abilities. Training and development leads the better performance of employees. The success of the organizations depends on employee performance. In this globalization era training is crucial for the competent and challenging business. It is the nerve that needs to help enhancing the quality of work life of employees and development the organization. Training and development is the crucial factors of enlightening the employee performance in most organizations. The purpose of the study is to find out the impact of training and development on employee performance. The study found out that employees are aware about training; employees are motivated through training; and training and development results into higher performance. The study suggested that training and development of all staff should be dynamically followed and made obligatory and the employer should give compulsory training programs for all employees in order to improve performance. The study decided that there is need for continuous training and development taking into deliberation the opposition, market dynamics, customer satisfaction, and net promoter score among others.
Keywords: Training, Development, Job Satisfaction, Employee, Performance. 1. INTRODUCTION
We are living in a global village. The world is becoming smaller and our business is becoming larger as the result of globalization. In this regard the companies must be competitive to face the challenges of the globalization. The competitive advantages of the firm depend on the knowledge and skills possessed by the employees (Drucker, 1999).Training and development have become one of the necessary functions in most organizations, because they lead to high performance in the same field and are important part of human resource department, it has a significant effect on the success of an organization through improving employee performance (Mozael, 2015).There is significant positive relationship exists between employee training and development and the employee performance (Naveed, 2014).
Current organizations are facing extensive competition, continuously changing technological and business environment. Globalization and ever changing customer needs have added up more challenges on business organizations. In order to meet these challenges, the industries are seeking to reach its targeted profit level by ensuring proper training and development of employees. Employees are most precious asset for any company as they can build up or destroy reputation of company and they can effect profitability (Elnaga and Imran, 2013).Training is more present-day oriented that focus on individuals‟ current jobs, specific skills and abilities to immediately perform their jobs while development enhances behaviors, attitudes and improves employee performance in an organization. It is the process of increasing the knowledge and skills of an employee, for doing a particular job. Training is of much significance in achieving the objectives of the organization by keeping in view the interest of employees and organization (Stone, 2002). Development is a long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general
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purpose. Training and development proves to be a parameter for enhancing the ability of the workforce for achieving the organizational objectives. Training is seen as a useful means of coping with changes fostered by technological innovation; market competition, organizational structuring and most importantly it plays a key role to enhance employee performance. Thus the objective of this study is to show the impact of training and development on employees‟ performance.
Training and development have become one of the necessary functions in most organizations, because they lead to high performance in the same field and are important part of human resource department, it has a significant effect on the success of an organization through improving employee performance (Mozael, 2015).
The existing organizations should deal with training necessitates linked up with altering and growing internationalization of industry, diverse national point of view and a varied workforce (Abdus, 2011). Training is of much significance in achieving the objectives of the organization by keeping in view the interest of employees and organization (Stone, 2002). Training includes but not limited to software training, management training whereas development focuses primarily on the activities that improve employee skills for future endeavors. Firms are now facing new changes due to the rapid pace of technological and global development. Technological advancements have brought about the need of competencies and capabilities needed to perform a specific task. In order to manage these challenges, more enhanced and efficient training programs are needed by all corporations. 2. LITERATURE REVIEW
Training and development is essential for all organizations to achieve their objectives. Many researches have been done in this area for understanding the importance of training and development. According to Abbas Q. and Yaqoob (2009) this fact is of no question that the most domineering apprehension for organizations is performance. The study found that training and development had positively correlated and claimed statistically significant relationship with employee performance and effectiveness.
There have been many studies conducted on this subject. HRM activities are considered as a gift in the eyes of employees and training is one of them (Mahbuba, 2013). According to Iftikhar and Sirajud (2009) training and development is an important activity to increase the performance of the employees. Without the training the organization cannot achieve the organization‟s strategic goals, mission, and effectiveness. On the other hand, Miller and Osinski (2002); Rajasekar and Khan (2013) focused and analyzed that employee training & development is one of the essential parts of human resources management with the identification of organizational need, technique and procedure at different industrial perspectives.
2.1. Employee Training
Training is the learning process that is the indispensable part of human resource development. According to Abbas Z. (2014) training as an essential element to an employee for the development of the companies because some of the employees have lack of knowledge skills and competencies and failed to accomplish task on timely basis. Besides, Training is a learning activity directed towards the acquisition of specific knowledge and skills for the purpose of an occupation or task. The focus of training is the job or task for example, the need to have efficiency and safety in the operation of particular machines or equipment, or the need for an effective sales force to mention but a few (Cole, 2002).
According to Saleem et al. (2011) training is an organized increase from the know-how skills and sensations needed for staff members to execute efficiently in the offered process, as well as, to operate in underling situation. Furthermore, training also increases the abilities of employee‟s very effective way by motivating them and converting them in to well organize and well-mannered, that ultimately affects the performance of organization.
However, Laing (2009) training is defined as an indicator to enhance superior skills, knowledge, capabilities and outlook of the employees that results in effective performance of the workers. Moreover, he adds one more thing, that is, training extends the production of the organization. In line with this is the believe that training is important mean to improve the employees‟ productivity which ultimately affects the organization performance and effectiveness (Singh and Mohanty, 2012).
According to Nunvi (2006), training programs are directed towards maintaining and improving current job performance while development seeks to improve skills for future jobs. Besides Armstrong (1996), emphasized that training should be developed and practiced within the organization by appreciating learning of theories and approaches, if training is to be well understood. Training is a type of
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activity which is planned, systematic and it results in enhanced level of skill, knowledge and competency that are necessary to perform work effectively Gordon (1992). On the other hand, development is a broad ongoing multi-faceted set of activities (training activities among them) aimed at bringing someone or an organization up to another threshold of performance, often to perform some job or a new role in the future (McNamara, 2008).
While Singh and Mohanty (2012) explained in their research that training is an important tool for the purpose of enhancing the workforce performance and it‟ll ultimately increase the worth of an organization but organization ought to be balance amongst training worth and training disbursement. Besides, Chris (2011) employee training is essential for the organization to develop the performance of the employees and the organization should evaluate the training program as per the objectives and missions.
In the same way, training enhancement of skills pertaining to a particular job while development has its scope stretched across the growth and personal development of the employees Obisi (2011). Moreover, Cambell (1971) has given his views as training improves the skill level of technical staff during a short period of time for a specific objective while development allows the managers to learn and grow during a long term learning period having wide-ranging objective. Also, Armstrong M. (2009) has differentiated training from development by putting his concept into words that development is meant to acquire new knowledge and skills that help to progress into some future job requirements while training helps in gaining those competencies that enable the employees to better perform in their present jobs.
Further researchers added that technological developments, atomization, mechanization, changing environment and organizational change have gradually led some employers to the realization that success relies on the skills and abilities of their employees, and this means considerable and continuous investment in training and development Khan et al. (2011).Training the act of increasing the knowledge, skills, abilities of an employee for doing a specific job .It an is an organized increase from the know-how skills and sensations needed for staff members to execute efficiently in the offered process, as well as, to operate in underling situation Saleem et al. (2011). Moreover, Laing (2009) assumed that training as an indicator to enhance superior skills, knowledge, capabilities and outlook of the employees that results in effective performance of the workers.
However, Singh and Mohanty (2012) believe that training is important mean to improve the employees productivity which ultimately affects the organization performance and effectiveness. On the other hand Training must be talked in such a way that it covers the employee‟s performance-development needs and is in accordance with their job descriptions. In addition to the previous arguments, McConnell (2004) supports a partnership approach between the employees and their companies in determining training needs, as well as the involvement of the employees in setting up training goals. Besides Mehrdad et al. (2009) also said that training techniques are classified into behavioral or On-the-job (orientations, job instruction training, apprenticeships, internships and assistantships, job rotation and coaching) and cognitive or off-the-job (Lectures, computer-based training, games and simulations etc.
According to Mahbuba (2013) assumed that trainer‟s role is shifting from a simple role of providing skills to active communicator, who makes an effort in achieving training as well as organizational objectives. The main objective of the training is to improve the knowledge and skills, change attitude and behavior of the employees so that they can easily adapt the new technology in the organization for production. As result the turnover and absenteeism rate will be less. Well trained employees show both quantity and quality performance. There is less wastage of time, money and resources if employees are properly trained James et al. (2014).
2.2. Employee Development
Employees are always regarded with development in career-enhancing skills which leads to employee motivation and retention. There is no doubt that a well-trained and developed staff will be a valuable asset to the company and thereby will increase the chances of their efficiency and effectiveness in discharging their duties. On the other hand development means those learning opportunities designed to help employees to grow. Development is not primarily skills oriented. Instead it provides the general knowledge and attitudes, which will be helpful to employers in higher positions. Development programs are regarded as specific framework for helping employees to develop their personal and professional skills, knowledge, attitudes, behavior and consequently improve their abilities to perform specific task in the organization. It provides knowledge about business environment, management principles and techniques, human relations, specific industry analysis and the like is useful for better management of company. Manpower development focused on turning out human resource that is needed for effective
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performance in the organization (Drucker, 1999). Moreover Lawal (2006) said that it is updating system of new techniques or skills associated with the performance of their jobs .On the other hand,
According to Adeniyi (1995) manpower development methods includes under study, job rotation, self-development and self-assessment. Despite, Aswathappa (2000) also suggested that if the training and development function is to be effective in the future and yields all expected returns, it will need to move beyond its concern with techniques and traditional roles. On the other hand, development focuses on building the knowledge and skills of organizational members so that they will be prepared to take on new responsibilities and challenges.
(McKenna and Beech, 2002) On the other hand Employee Training and Development strikes a balance between research and real company practices which provide background in the fundamentals of training and development such as needs assessment transfer of training, learning environment design, methods, and evaluation (Noe, 2010).Basically employee development includes training, education, and career development. It also includes exchange of knowledge and experience. 3. OBJECTIVES OF THE STUDY
The study investigated the impact of training and development on employee performance. This research work looks at training and development as an HRM practices and its effect on employee performance in the organization. Definitely, the aim of the study is to find out:
¾ The factors affecting training and development of employee performance ¾ The impact of training and development on organizational productivity ¾ The impact of training on employee satisfaction. ¾ The need of employee training in organization.
4. METHODOLOGY OF THE STUDY 4.1. Sample and Data Collection
10 questionnaires were distributed among the different employees in the organization.10 questionnaires were completed information required. The response rate was agreeable. Convenience sampling technique was used for this study. The data was gathered by using self-administered questionnaire and the participation was voluntary.
4.2. Measures and Scales
Two variables were used in this study i.e. Training and development, employee performance and job satisfaction. Equally 10 questions of training and development and employee performance were used. Job satisfaction had 2 questions which were adopted from the study of (Cook and Heptworth, 1981). All variables were measured using a 5-point liker scale in which 5 represented strongly agree to 1 which is strongly disagreeing.
5. ANALYSIS AND RESULTS
The main purpose of this study is to evaluate the impact of training and development on employee performance in the organization. Here data have been gathered on the sampled respondents on the impact of training and development on employees‟ performance, motivation, job satisfaction of the organization. The findings of this research study and the subsequent evaluation carried out on the responses reflect the key areas of training and development and its challenges on employee performance, motivation, retention and morale. Findings from Employees a total number of thirty (30) employees were selected to provide answers to the structured questionnaire .Analysis of survey data is given bellow-
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Figure 1: Do you think your organization‟s provided trainings are enough for you to achieve your performance objectives?
Source: Questionnaire Survey
From this chart it can be said that, 67 percent employees are strongly believed that they can improve their performance after getting training where 23 percent are agreed with this training content and 10 percent are remain neutral to vote for the training provided by the organization.
Figure 2: Do you think the training and development program has positive impact to develop organization?
Source: Questionnaire Survey
This chart is telling that 50 percent employees are strongly agreed with this statement. 17 percent are disagreed with this content. On the other hand 23 percent are agreed with this statement, but 10 percent are not expressing their opinion.
Figure 3: Do you think the training improves your skills, knowledge, and attitude?
Source: Questionnaire Survey
From this chart it is clear that among 30 respondents 15 respondents are strongly agreed with the statement while 7 respondents are just agreed but 5 respondents are not agree with this. On the other hand
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3repondents are remaining neutral. So it can be said that training has high influential impact on employee performance.
Figure 4: Does the training lead you to be satisfied with your job?
Source: Questionnaire Survey
From the above figure it is said that50 percent employees are strongly agree with this training content , 23 percent are agreed with this statement .On the other hand 17 percent employees are disagree with the content and 10 percent are neutral with this content. Though majority is supporting the content, here the organization should change the training content in such ways where employees feel interest to attend the training for better performance.
Figure 5: Training enhance productivity and performance
Source: Questionnaire Survey
Table 1. Training program is compulsory for the employees for better performance and productivity Responses Frequency Percentage YES 20 66.6 NO 10 33.3 CAN‟T SAY / / TOTAL 30 %
Source: Questionnaire Survey
From the analysis, 66.7 % of the employees beliefs that training program is compulsory for better performance and 33.33% employees are not agree with this statement.
Table 2. Frequency of Training and Development has positive impact on performance. Responses Frequency Percentage Yes 20 66.6 No 5 16.6 Can‟t Say 5 16.6 Total 30 100 %
Source: Questionnaire Survey
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From table two it shows that among 30 employees 66.6% believed training has positive impact on organization while 16.67% employees are not believed with this statement and also 16.67% employees are cannot say anything about this statement.
Table 3. What type of training have you received from your organization that is directly effect on performance?
Responses Frequency Percentage On- The Job 20 66.67 Off- The Job Training 10 33.3 External Training / / Refresher / / Mentoring / / Total 30 100 %
Source: Questionnaire Survey
The table is telling that 66.67% employees are expressed that on-the-job training directly effect on performance .On the other hand 33.33% employees are believed that off-the-job training directly effect on performance. So we can say that the training has positive impact on employee‟s performance.
Table 4. How often you receive training from your organization to improve performance and productivity?
Responses Frequency Percentage Quarterly 15 50 Twice In A Year 10 33.3 Once In A Year 5 16.67 Rarely / / None / / Total 30 100 %
Source: Questionnaire Survey From the above table we can say that among 30 employees 50 %employees believed that quarterly
training program improve the performance and 33.33% employees are expressed that twice in year training improve performance. On the other hand 16.67 % once in year training can improve performance and productivity. Here majority percent are believed with this statement.
Table 5. Training program helps to create job satisfaction in quality of work life. Responses Frequency Percentage True 10 33.33 False 20 66.67 TOTAL 30 100 %
Source: Questionnaire Survey
The above table telling that among 30 respondents 33.33% respondents believed training program helps to create job satisfaction and 66.67% respondents don‟t believe this statement. Majority percent respondents are not agree with this content.
6. DISCUSSION AND FINDINGS OF THE STUDY
Training is one of the most potential motivators which can lead to many possible benefits for both individuals and the organization that helps to achieve objectives of the organization. This study examined the impact of training and development on employees‟ performance. The objective is to evaluate and analyze the impact of training and development of employee‟s performance. To achieve these objectives a sample of 10 respondents were selected. The study revealed some findings like average employee strongly belief that training improves skills, knowledge, and abilities and it helps to create their job satisfaction of employees. This statement is similar with the view of Ewuim and Ubochi (2007). Basically better productivity depends on proper training to the employees. 7. RECOMMENDATION
Many organizations have come to the realization of the importance of the role of training and development programs as it increases the organization„s staff efficiency, skills and productivity. In order to achieve the benefits of training initiative. The research shows that there is strong impact of training and
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development on employee performance. All Employees of the organizations find their training and development beneficial for their performance. Employers should be provided with more training programs in order to reduce the cost of recruiting and training new staff members. On the other hand the provision of feedback to employees after training is recommended in order for employees to become aware of areas where they can improve their performance.
8. CONCLUSION
Training and Development is an important aspect of human resource management. It is important for organization to get skilled and capable employees for better performance, and employees will be than competent when they have the knowledge and skill of doing the task. Training and Development would provide opportunities to the employees to make a better career life and get better position in organization. Therefore, the purpose of this study is to analyze the impact of training and development on employee performance. HR Department is continuously hiring skilled people from wide market and thus provides trainings to cope with global challenges. Through various HR activities and training programs they retain talents in the organization, ensure career path for performers to perform more efficiently and effectively to contribute more and more.
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