CHAPTER 1

1.INTRODUCTION

There is no doubt that organizations worldwide are striving for success and outcompeting

those in the same industry. In order to do so, organizations have to obtain and utilize her

human resources effectively. Organizations need to be aware of face more realistically

towards keeping their human resources up-to date. In so doing, managers need to pay special

attention to all the core functions of human resource management as this plays an important

role in different organizational, social and economically related areas among others that are

influential to the attainment of the organizational goals and thus organizations successful

continuation in the market. This study, therefore, goes on to discuss one of the core functions

of human resource which is training, employee performance, and how the earlier affects the

latter.

This chapter is divided into two sections, which will give the reader a comprehensive

overview of the study. The first section presents the subject matter by presenting the

background of the study. This is will be followed by the statement of the research

problem and the purpose of the study. Finally, the last section presents an overview of

the progress of the rest of study.

The main objective of our study is how the training increases the employee performance. A

researcher said that training increase or develop the managerial skill .Despite focusing on

efficiency and cost control the spending on training should increase because

organization get more efficiency , effectiveness out of the training and development. This

shows that training increase the efficiency and the effectiveness of the organization.

Motivation results from the interaction of both conscious and unconscious factors such as the

intensity of desire or need, incentive or reward value of the goal, and expectations of the

individual and of his or her peers. These factors are the reasons one has for behaving a certain

1
way.An example is a student that spends extra time studying for a test because he or she

wants a better grade in the class. Internal and external factors that stimulate desire and energy

in people to be continually interested and committed to a job, role or subject, or to make an

effort to attain a goal. Most employees need motivation to feel good about their jobs and

perform optimally. Some employees are money motivated while others find recognition and

rewards personally motivating and some employees motivated by performance. Motivation

levels within the workplace have a direct impact on employee productivity. Workers who are

motivated and excited about their jobs carry out their responsibilities to the best of their

ability and production numbers increase as a result. Employee incentives come in a variety of

forms including paid time off, bonuses, cash and travel perks. Some employees are motivated

through feeling a sense of accomplishment and achievement for meeting personal and

professional goals. Many workers are self-disciplined and self-motivated. Incentive and

rewards have little effect on employees who feel motivated only when they are confident in

their abilities and personally identify with their role within the organization. At the

conclusion of the program, employers can publicly recognize top performers for a job well

done.

Inspiring employee motivation requires much more than the old-fashioned carrot- and-stick.

Motivated employees have a drive to succeed no matter what the project.

1.1. Back ground

Organizations are facing increased competition due to globalization, changes in technology,

political and economic environments and therefore prompting these organizations to train

their employees as one of the ways to prepare them to adjust to the increases above and thus

enhance their performance. It is important to not ignore the prevailing evidence on growth of

knowledge in the business corporate world in the last decade. This growth has not only been

brought about by improvements in technology nor a combination of factors of production but

2
increased efforts towards development of organizational human resources. It is therefore, in

every organizations responsibility to enhance the job performance of the employees and

certainly implementation of training and development is one of the major steps that most

companies need to achieve this.

Organizations therefore, need to design its human resource management in ways that fit into

the organization’s structure as this it will make the organizations achieve their goals and

objectives. Moreover, it is also important for organizations to assists their workforce in

obtaining the necessary skills needed and, increase commitment.

In 1970s, the efforts of career planning and development were mainly dedicated on young

employees those demonstrate to have a high potential. It has been suggested for the

organizations to make plan for future and provide training and development to their fresh

employees for the high-ranking positions in future. However, the career path model develops

very well through the conservative commitment which employees would offer to their

organization. This commitment can be described as emotional agreement by which employers

are commonly guaranteed the loyalty for long term commitment with organization in result of

providing employees work safety Training enables the employees to learn new ideas,

become efficient in production and communicate well with the team and groups in the

organizations. Studies have revealed that training help to minimize staff attrition because of

the job performance security. Maslow noted that “it is a rare individual who is completely

secure in his work environment,” to demonstrate the positive impact of training to employees.

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1.2. The aims and objectives

The study aims at establishing which training programs are the most effective

in motivating employees to acquire new skills and knowledge that will boost the overall

organization benefits. The overall objectives are:

1.) To find a strategy of how organizations can implement technology trainings to improve

employees computer skills.

2.) To investigate the nature of T&D programs in the organizations (e.g. evaluation of TNA,

objectives, T&D and type of training methods) in order to formulate a framework for the

future study and execution of T&D.

3.) To assess the impact of T&D on all employee, in terms of their (i) knowledge, (ii)

skills, (iii) ability, (iv) morale at work, (iv), general morale(v) confidence, and overall

performance as well as the relationship between employees‘ performance

competence (e.g. skills and knowledge) gained from T&D and b (i) employees‘

organizational commitment, (ii) turnover intention, (iii) job satisfaction, and (iv) job

performance.

4.) To explore the effectiveness of the T&D among employees in different positions and

departments in the organization.

5.) To study the factors that influence the transfer of learning and establish the training

transfer factor that is the highest predictor of training transfer on the job in order to

make recommendations.

6.) To investigate how effective T&D is in enhancing individual and organizational

performance in order to make recommendations for better performance in the future.

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CHAPTER 2

2.LITERATURE REVIEW

2.1. Training and Development Program

Internationally different companies provides training and development programs to their

employees for the improvement of their skills and abilities. In the start of 90s series credit

initiated the key rearrangement and retorted with a career development programs. These

program was developed for employee in order to line up their skills with changing jobs and

also ensured that program was adding value for the growth of their organization. Companies

also think that they were not allocating career opportunities to their employees with

acquaintances and abilities to get the benefits from these opportunities (Herron and

Simonson1995). Jc penny, countrywide wholesale departmental store, developed a virtual

university to support the employees to get abilities and skills as required by their jobs(Garger

1991). U.S Tsubaki Illinios, established UST University to provide and calculate training and

organizational programs that fulfill the organizational and individual needs of the

organizations(Callahan 2000).All over the world different companies are providing different

programs for the betterment and skill improvement of their employees which are based on

same logic.

In fact, the quality of employees and the continual improvement of their skills and

productivity through training are now widely recognized as vital factors in ensuring the long-

term success and profitability of small businesses and in addition create a corporate culture

that supports continual learning. (Marmer 1999).

For the most part, the terms "training" and "development" are used together to describe the

overall improvement and education of an organization's employees. However, while closely

5
related, there are important differences between the terms that center on the scope of the

application. In general, training programs have very specific and quantifiable goals, like

operating a particular piece of machinery, understanding a specific process, or performing

certain procedures with great precision. Developmental programs, on the other hand,

concentrate on broader skills that are applicable to a wider variety of situations, such as

decision making, leadership skills, and goal setting. (Jacob, Ronal L. 2003.)

Each different job within the company should be broken down on a task-by-task basis in

order to help determine the content of the training program. (Schwartz 2000) In measuring

the effectiveness of training, researchers have typically relied upon the subjective reactions of

participants (Baker et al, 1982). Other measures that have been used previously include the

performance of task activities within the context of training programs (Baker & Titus, 1982;

Forney, 1986) and follow-up questionnaires designed to assess trainees' subsequent

emotional states (Winston & Buckner, 1984) or their ability to apply program content to

hypothetical situations similar to those encountered on the job (Schuh, Stage, & Westfall,

1991).

Training in an organization can be mainly of two types; Internal and External training

sessions. Internal training occurs when training is organized in-house by the Human

resources department or training department using either a senior staff or any talented staff in

the particular department as a resource person. (Bowley 2007) On the other hand, External

training is normally arranged outside the firm and is mostly organized by training institutes or

consultants. Whichever training, it is very essential for all staff and helps in building career

positioning and preparing staff for greater challenges. (DeCenzo 1998).While the

applications of training and development are as various as the functions and skills required by

an organization, several common training applications can be distinguished, including

technical training, sales training, clerical training, computer training, communications

6
training, organizational development, career development, supervisory development and

management development. (Mondy, R.W. et al 1990).

(Daft 198 3) mentioned that all employees want to be valuable and remain competitive in the

labor market at all times. This can only be achieved through employee training and

development. Employees will always want to develop career-enhancing skills, which will

always lead 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 increasing the chances of

his efficiency in discharging his or her duties. (Daft 1983)

(Mel Kleimen 2000) describes that the essential parts of the worthy employee training

program are constructed on orientation, management skills, and operational skills of

employees.(Janet Kottke 1999) described that employees development programs must be

comprises with core proficiencies appropriate structure through which organizations develop

their businesses at corporate level. The basic function of theory is to gain knowledge,

Inventive thinking and resolving problem. These objectives provide help to the strategic goals

of the several employee development programs are to deliver the mission of organization and

support workers to learn the culture of organization (Gerbman 2000).These objectives

provide help to the strategic goals of the business by facilitating learning chances and support

organizational culture (Kottke 1991).The requirement for technical training program for

employees raised their job satisfaction and help to understand the culture of organization,

which lead to the success of organization. We must take care about these element that

employee should be updated with the present knowledge of the job. Employee will be more

productive if companies provide them training as per the requirement of the job.

Today most of the organizations have built up different programs for the training and

development of their employees. Usually companies offered tuition reimbursement package

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to their employees so that they can improve their knowledge and education. It has been found

by the Corporate University that almost 10 percent of employees are entitled for this benefit

(Rosenwald 2000). Furthermore, only senior management and those employees who are at

top level are entitled for tuition reimbursement (Rosenwald 2000). As a result thereof, many

organizations conduct in-house training programs for their employees that are more

beneficial and cheap. Training section of the organizations attempts to concentrate on

particular job proficiency whereas the corporate department is proactive with an additional

strategic approach. Training and development program is a planned education component and

with exceptional method for sharing the culture of the organization, which moves from one

job skills to understand the workplace skill, developing leadership, innovative thinking and

problem resolving (Meister, 1998). Employee development programs includes a variety of

teaching technique, schedule, and helping learning environment that ensure employee to

improve their skills and later apply on their jobs (Gerbamn 2000).

2.1.1. The Role of Training

Studies by (Cole 1997) showed defined training as a learning process which is aimed at

impacting knowledge and skills to enable the employees execute their work task better.

Trainings at work are normally task or job cantered (Bach and Sisson 2000). There are

various reasons why training is accorded to employees such as efficiency

enhancement,(Freudenberg and Herper 1998) work health and safety for machine

operatives(Fadier and Ciccotelli 1999) maximization of product and service sales(Goldhar

and Jelinek 1983) and competency building (Klingstam and Gullander 1999) According to

(Trevor 1991), trainings should improve the staff skills and change their attitudes towards

trends at work. Additionally, training can motivate the workforce to higher levels (Benson &

Dungis 2003). Organizations that prioritize training have been known to attain higher

8
mission performance. (Law and Kelton 1991) Training bridges the gap of work performance

versus the work goals attainment (Cook and Wall 1980).

(Dessler 1998) defined planned training as purposeful intervention that will impact

knowledge for realizing better job performance. In this case, the organizations HRM should

have a system and policy of identification of training needs such as regular appraisals so that

the precise learning objectives can be defined and attained (Slack 2001). (Bradley 1992) on

the other hand noted that the importance of training by ambitious employers had been

realised as early as three decades ago. During this period many organizations expanded and

subdivided their operations in order to meet vision and missions (Slack 2001). In this

process, many employers were keen to monitor the progress of their employees and created

the human resources department which saw the need of trainings as one of the major

solutions for productivity attainment (Warr 1979). (Trevor 1991) noted that the full benefits

of training can be ascertained by assessing the organizations net return on investments.

Therefore a training process should have unilabiate, bivariate or multivariate effect on the

employees’ performance targets. However, the process starts with training needs assessment

and appraisal so that specific objectives can be outlined in order for the organization to attain

maximum returns (Youndt et al 1996) Organizations that have a rich pool of well trained

staff will be able to make more progress towards their missions and visions because the staff

will be able to execute challenging tasks of work while returns from investment also increase

(Baines et al 2005). According to (Armstrong 1992) a successful management program is

one that prioritizes on the employee needs and responds to them in time. He also stressed on

the need to structure the trainings so that various groups can be targeted at a time. (Mullins

2005) underscored the need of evaluating training process along the related objectives in the

measurement of the performance. This process has the aim of evaluating how much positive

impact the training has on the organizational process. (Tornighton 1998) emphasized that

9
critical identification of the training needs in alignment to it strategies should be able to

standardize the employee individual needs. This process will be done by various job

evaluations and assessment of staff performance.

2.1.2. Components of Training and Development Program

Companies required to make sure that employee can learn whenever they required (Garger

1999). To complete these purpose organizations required the internet and computer based

learning segments. The basic reason for career planning as quantity of employee training

program is not merely to support employees to think that their employers are financing in

their career, furthermore keep in mind that they help employees to manage various

characteristics of their lives and a clear promotion track. Employers cannot make promise

with employees for their job security, but they provide them opportunities to improve their

knowledge and skills, so that they can remain sustain in job market (Moses 1999). Career

development of the employees should be established on bright career path which employee

can easily recognize and gave it worth (Nunn 2000). To achieve this purpose, employee must

classify their work, work priorities and current skills they have to do their job. Therefore,

employees can start identify the jobs that would require in future and set of skills to manage

those jobs (Moses 2000).

The main problem suffer by organizations is to commit this practice, which may take some

employees to leave the organization and look around for certain job vacancies outside the

organization (O’Herron and Simonsen 1995).

Furthermore, sometimes employees feel the risk of right sized of employee in the

organization. The key element of career planning and employee development is goal setting.

Therefore it has been described that learning programs support employees to enhance their

performance instead of just increasing their work competencies (Gerbman 2000).

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It is better to give the opportunity to employees to perform their jobs in a better way and if

they need help, organizations must provide them proper tools to perform the job.

Development program help the employees to learn and facilitating them to become a critical

philosopher (Garger 1999). Sears Roebuck & Co. remains careful on this idea as

organization doesn’t want that all employees think similar but the organizations need to give

those employees conceptual skills to think in a different way (Gerbman 2000).

An employee from Tires Plus described that he educated additional about the organization

instead of just doing his work and this assist him to think in what way he can positively

influence on the goals of the organizational (Dobbs, 2000). Individual should improve their

knowledge so that organizations get them hand to hand and pay them good salary. It is the

main responsibility of the organizations to provide opportunities to their employees but

individual should take initiative to use those opportunities for the betterment of their future

career (Garger 1999). Employee training and development programs should create in a way

that it not only accomplish its goals but have optimistic consequences on employee and

organization. The organizations which are using employee development programs are getting

positive results from the individuals by using this program(O’Herron and Simonsen 1995).

2.1.3.Employee Training

Training addresses gaps or discrepancies between an ideal and an optimal stage of

development. However, from a comparison between desired and actual work methods or

between desired and actual results, needs arise on the job. (Smit and de Cronje 2003) refer

to three methods for identifying needs: the generic methods, performance analysis, and

competency assessment. Where performance analysis focuses on deficiencies or problems,

competency assessment focuses on opportunity for improvement. Trainers identify how they

believe people should perform and then design a training programme to give the workers the

skills they need. (O’Herron and Simonsen 1995) Training can only be executed when it has

11
been determined which employees should receive training and what their current levels,

knowledge and skills are. Consequently, the assessment of the individual will indicate the

range of skills and knowledge that is to beacquired. Note that the difference between actual

performance and required performance will ultimately form the training gap, and therefore

indicate the extent of training needed.

2.1.4.Types of Training

The following are the types of training provided in organizations:

2.1.4.1. On-the-Job Methods

Management education normally takes place off the job, but a great deal of learning takes

place on the job. According to (Smit and de Cronje 2003), there have been several recent

studies on managerial learning and skills development in South Africa that result from on-

the-job experience. This research suggests that managers learn most from assignments that

are very difficult and challenging. A programme of management education should include

assignments and job rotation plans that stretch managers to their limits (Grobler et al 2006)

2.1.4.2. Off-the-Job Methods

(Smit and de Cronje 2003), Sensitivity training includes techniques such as laboratory and

group training,

communication workshops and outward board’s trips. The purpose of sensitivity training is to

make employees more aware of their own behaviour and how their behaviour is perceived by

others. It also increases the participants’ awareness and acceptance of the differences between

them. In terms of this type of training, small groups of eight to fourteen individuals who are

strangers to each other are usually grouped together and assisted by a trainer. During the

discussion, employees discuss themselves, their feelings, and the group process (Grobler et

12
al 2006). The most frequent changes derived from this training include a more favorable self-

perception, reduced prejudice, improved scores on tests of interpersonal relations, and

changes in interpersonal behavior as observed by others, all of which are particularly relevant

in South Africa.

2.1.5. Reasons for Carrying Out Training and Development

Employers do not regularly consider the feelings of their employees regarding skills

development. Accordingly, (Frost et al 2003) claim that the traditional business organization

is closely modelled on the military style of management, probably because armies are the

largest and almost certainly the oldest human organizations. In response to this, (Katcher and

Snyder 2003) identify some of the reasons why employers need their employees to

continuously learn new skills.

2.1.5.1.Capital Improvement.

Organizations tend to spend millions of rands on upgrading their plants and equipment, yet

little on upgrading their human capital. Employees are an asset to the organization but

employers are more concerned about reaching deadlines and profit maximization rather than

employees skills development, without which employee performance could be hampered.

Although the organization still achieves productivity, the focus should also be on the

dedication, commitment and loyalty of employees. If employees do not receive ongoing

training, up-to-date equipment will not be used optimally.

2.1.5.2. Morale Improvement.

Employees who continuously upgrade their job skills will also improve their productivity.

Developing employee skills not only plays a role in the workplace, but in the external world

as well. It contributes to the full personal

13
development of each employee and the socio-economic development of the nation at

large; therefore, happy employees may be productive, but more productive employees

are happier.

2.1.5.3. Ability to Adapt to Change.

The more skilled the workforce is, the easier it will be for the entire organization to adapt to

changes that may arise in the domestic and global market place in the demand of its products

and services. Sometimes employees are reluctant to adapt to change because of the

uncertainty involved, but one of the objectives of the Skills Development Act 97 of 1998 is to

develop the skills of the South African workforce as well as increasing levels of investment

in education and

training in the labor market.

2.1.6. Factors Affecting Training

Feedback is a very important condition for the successful acquisition of skills. (O’Herron

and Simonsen 1995) raining can be done mentally, where the employees go over the events

in their heads in order to be properly prepared. It is important that information is given

correctly in the early stages of learning. This is so because if errors are not picked up early,

the employee will be greatly disadvantaged when someone spots them later. Indeed, if the

employees have been applying such faulty skills for years, it may mean that they are never

fixed. The role of practice in the business of skills acquisition is very important when one

thinks how much time employees spend perfecting the skills involved in their tasks. The main

purpose of job training is to give employees the knowledge and skills they need to perform

effectively in their fields of expertise. According to (Kreitner and Kinicki 2007), there are a

number of factors on the job that prevent transfer of learning. These include the following:

14
 If learners see no value in applying new skills, believe no rewards will result from

doing so, or do not value the rewards, and then transfer of learning from classroom to

the job will not occur.

 If individuals have little or no latitude to change what they do because the job tasks are

too tightly controlled, then training can never be applied unless task controls are

relaxed.

 If a learner’s supervisor is not in favour of training, then there is little or no likelihood

that a learner will be applying newly acquired skills. Supervisors exert a powerful

influence over the behaviour of subordinates because they control rewards and

punishment.

 If a trainee returns to the project field only to find that fellow workers greet new ideas

with scepticism, then training will not be imparted successfully.

(Cascio 2005) enumerates other factors that affect training, these are explained below:

 Funding for Employee Training: Adequate funding continues to be a concern. While

the need for resources to provide employee training and development increases, funding

may not be available. In fact, funding for training and development may be one of the

first items to be eliminated in times of financial constraints.

 Less Job Security: Employees in the private sector (and employees in general) have less

job security than previously. It is often said that people can expect to have many

different employers and even different careers during their work life. Given this idea

and reality, employees will continuously search for employers who will provide them

with opportunities to develop transferable skills.

 Limited Opportunities for Development: Most organizations have a flat organizational

structure. This means that there is little room for promotion. Employees and

organizations need to embrace the idea that moving up is not the only way to be

15
 satisfied with one's work. An alternative is to create challenges for employees in their

current positions or in a similar position.

2.1.7.Individual Benefits from Training and Development Program

2.1.7.1.Career Competencies

Employer get a lot of benefits from the employee training and development program. They

learn the soft and technical skills as required by their jobs. In last 30 years unemployment is

at its lowest rates which is not beneficial for the workers to start new job, if opportunities for

growth are fewer (Dobbs 2000). Fresh university graduates mostly considering for a firm

which provides intensively training programs to their employees, but this idea is risky for

organizations to lose fresh trained employees with couple of years (Feldman 2000).

Professional which are placed in the industry of information technology, identify that

knowledge is authority and they required to retain their abilities and talent according to

current requirement of the market. Most of the employees recognize the importance of

training program and would like to increase their salary (Dillich 2000). It is also expected

from the fresh graduate not appropriately equipped for the continually changing business

environment (Gerbman 2000). Young professionals with entrepreneurial ambitions know

that they have shortage of experience and money; hence they attempt to join companies

which provide training programs to prepare their employees for the betterment of future

(Feldman 2000).

Employee development program help employees to survive in the future and develop their

abilities to cope with new technologies. From many years the requirements for blue-collar

jobs is constant, and numerous companies have prepared a modification for demanding

learning software and programmed systems (Cunniff 2000). This requirement is compelling

workers to appraise their profession capabilities to sustain their employment. Due to this

16
situation numerous employees have rehabilitated their attitude to acquire promoted inside

their organizations to work and develop out of the organization (Feldman 2000). Therefore

workers used to prepare 10 year plan for their future and constantly change their plans after

two years as per the change of technology and information (Wilson 2000). Tires Plus delivers

training to promote a diverse career through the organization which comprises 80 hours

raining for supervisor to promote them to the manager (Dobbs 2000). I-Cube, Information

technology consulting firm in Massachusetts, provide employee development program for

their employees which is named by I-Altitude and offer to fresh employees so that the can

easily adjust themselves in the organization (Fenn 1999). Employees understand

that training program can directed to superior duties and higher remuneration (Fenn 1999).

Furthermore, helping workers to improve their skills and knowledge to cope with the future

requirements, lead to job satisfaction.

2.1.7.2. Employee Satisfaction

Employees have no feeling about their organizations, if they think that their organizations are

not caring about them (Garger 1999). Companies which are willing to spend money on their

employees, give value to work with those companies, even though that investment eventually

benefits the organization (Wilson 2000). Companies which are providing the training and

development programs for their employees are achieving high level of employee satisfaction

and low employee turnover (Wagner 2000). Training increase organization’s reliability for

the reason that employees recognize their organization is spending in their future career

(Rosenwald 2000). Loyalty with the organization cannot be calculated but it is substantial to

intrinsic reward that employee feel. Employee feels comfortable and wants to stay with their

organization, when they feel they are putting their efforts and skills in the bottom line for

their organization (Logan 2000). Employees who are satisfied with their jobs, believe that

their work has a purpose and important for their organization (Moses 2000). Usually the best

17
performers do not leave a job for the purpose of financial benefits. Though salary and

benefits plays an important part in selecting and retention of the employees, employees are

always observing the opportunities to acquire novel skills, to get theen counter of different

duties, and looking for personal and professional development (Wagner 2000). Therefore,

nourishing these requirements facilitates in figure up confidence, self-esteem and job

gratification in employees (Nunn, 2000).

2.1.7.3. Employee Performance

Training effects on behavior of employees and their working skills which resulted in

enhanced employee performance and further constructive changes (Satterfield and Hughes

2007) that serves as increase employee performance (Kraiger 2002). (Arthur et al. 2003)

developed an analysis of 1152 sample size from 165 resources and revealed that in

distinction with no-training or pre-training conditions; training had commonly positive result

on job-related performance. However, dissimilarities in positions of effect sizes were not big,

the efficiency of training vary regarding the training transfer technique and the skill being

trained. Benefits of training program are also related to technical skills of the employees. For

instance, (Davis and Yi 2004) developed two researches with approximately 300 contributors

with the help of behavior-model training and remained capable to increase significantly

computer skills. Psychologically practicing tasks permitted trainees to grow learned

knowledge, abilities and task. Training is positively effects on the employee performance of

the employees. During a qualitative study concerning mechanics in India, (Barber 2004)

originates that on-the-job training headed to superior novelty and implicit skills.

Technical and professional skills are very important for the employees to perform a job in an

effective way. Providing training opportunities to employees can enhance the performance of

the employees. Reference to invention, training increased the educated mechanics to figure

up two Jeep bodies using only a homemade hammer, chisel, and oxyacetylene welder.

18
Concerning to implicit skills, Barber described in his study that profession of a

mechanic needs “feel” to remain successful. (Barber 2004) described in the result of an

effective training that a mechanic had worthy emotion of how to hit the metal at the particular

spot so that work must be performed in a systematic and proper way.

2.1.8.Organizational Benefits from Training and Development Program

2.1.8.1.Market Growth

Employee development programs are important for any organization to stay solvent and

competitive in the market. Though it is expensive for the organization to spend the money on

their employees but this investment is positive for the organizations to hold the place in the

market. American Society for Training and Development mentioned two motives that are

significant for employee’s knowledge, first employees identify the worth of training and

marketable by organization and second CEOs of the companies understand that how fast

information is transferring in current business environment (Fenn, 2000). (Greengard 2000)

described that organizations are required to develop and maintain such learning environment

for the employees that expand the knowledge of organization and competitive ability.

However, employee training programs derived through a high price, but have a positive

impact on return-on-investment. Microsoft, and General Electric Company are entirely large

effective organizations, and these organizations realize training opportunities as an

investment (Kleiman 2000). (Wanger 2000) described in his study that American Society

for Training and Development found an association between financing in employee

development program and higher revenues from stock market. American Society for Training

and Development moreover originate that companies who apply average of $1,575 each

employee on learning got 24 percent growth in gross profit and 218 percentage increase in

revenue each employee instead of those who spend fewer on employee training and

development, investing in employee development is a condition that is suitable for individual

19
and organizations (Rosenwald 2000). Furthermore, employee training and development

programs not only increase the profit of organizations but also provide difference within their

native market. Organizations can practice training and development opportunities to support

them available to the current employees, perspective employees, plus clients of the company.

GSD&M’s Idea U, assists employees to recognize their characters and established that it has

prepared people as superior contributors to business (Petrecca 2000). Lastly, organizations

can utilize employee training and development programs to improve their appearance as best

employer in the job market.

2.1.8.2. Organizational Performance

Training has been defined as mainly contributing factor to the organizational effectiveness

(Schuler and MacMillan 1984). Exploration on this topic recommends that investment in

training and development program can be justified by the impact it creates to developed

individual and organizational effectiveness (Bartel, 2000). Furthermore, the earlier

researches have mentioned causation between training and effectiveness of the organization

(Blundell, et al 1999). (Bartlett 2001) recommends that one of the glitches that is usually

problematic to identify, is proposing an effective calculation of performance of the

organization. (Blundell et al. 1999) supported this by describing that lack of suitable data and

methodological difficulties prevents the adequate assessment of impact of human capital

appreciation and performance of organization. However, there is an increasing factor that

Human resource management practices impacts on attitudes and work-related manners (Allen

et al., 2003). To evaluate the effectiveness of training and development program it has been

advised that check directly the relationship of training and organizational commitment.

Further it has been revealed as certainly correlated to the efficiency of the organization

(Bartlett 2001).

20
The study proposes that constructive work-related performance and attitudes mainly depend

on the perception of the employees as the employees think that their organizations are taking

care of them (Allen et al 2003). However, the same factor is reliable with the social exchange

model; (Blau 1964) suggested that the emotional agreement between employer and employee

are the central element of organizational performance. (Gould-Williams 2007) proposed that

social exchange theory was originated by the organizations when they decided to care the

interest of their employees. Employees respond with optimistic attitudinal and behavioral

replies which are supportive to their organization (Settoon et al 1996). However training can

be used to provoke the preferred results that may contain

with enhanced organizational commitment (Bartlett 2001). The current research proposed

the facility of training and development program is likely taken consent by employee that

their organizations need to enter a social exchange with them. This social exchange

agreement produces a durable psychological bond between employee and organization

(Garrow 2004).

2.1.8.3. Employee Retention

The research described that employee retention is a challenging notion and there is no

particular method to retain employees with the organization. Several organizations have

revealed that one of the characteristic that help to retain employee is to offer them

opportunities for improving their learning (Logan 2000). Therefore, it has confirmed that

there is strong relationship between employee training and development, and employee

retention (Rosenwald 2000).

Companies should realize that experienced employees are important assets and companies

have to suffer the challenge for retaining them (Garger 1999). Therefore, companies which

are providing training and development programs to their employees are getting success in

21
retaining them. Sears has established that in localities where manager provide help to their

employees to develop professionally, turnover is almost 40-50 percentage fewer than

those stores where association with the managers does not available (Logan 2000). On other

side, numerous employees participate in employee training programs are not assured of a

conventional association between programs and employee retention (Rosenwald 2000)

several managers found that positive learning atmosphere directed to higher retention rates

(Dillich 2000).

Organizations that are offering employee development programs are getting success with

retaining employees. An effective design of training program can also increase retention

among employees. Employee retention is a volunteer move by organizations to create an

environment which involves employees for long term (Chaminade 2007). For the description

of more effective retention, researchers have recommended that organizations may contain

with training and development program that classifies volunteer assignments, requirements,

and expectations (Seigel and DeLizia 1994). “To retain employees, organizations need to

think seriously about their investment in training and development” (Leonard, 1998).(Fenn

1999) presented in his study that the normal monthly turnover at Unitel hasdecreased from 12

percent to 6 percent since they inaugurated Unitel University in 1998. Though numerous

persons involved with employee training and development programs are not assured of a

direct association between the programs and employee retention (Rosenwald 2000).

However, specific numbers of managers discover that a constructive learning environment

pointed to higher retention rates (Dillich 2000)

22
Fig 1: Proposed Model of Study

2.1.9. Why is Employee Development Important?

Employee development is something that most people imagine as intrusive all-day group

training sessions. Unfortunately, this dreaded approach to employee development is just the

opposite of how employee development should occur and feel to employees. Employee

development can manifest itself in many forms of training, evaluation, educational

programs, and even feedback. If executed correctly, the effects of training on employee

performance can often encourage growth within the worker and the organization itself

(Katcher and Snyder, 2003).

2.1.9.1. Employee Development: a Self-Fulfilling Prophecy One of the larger aspects of

developing employees’ skills and abilities is the actual organizational focus on the employee

to become better, either as a person or as a contributor to the organization. The attention

given by an organization, coupled with increased expectations following the training

opportunity can lead to a self-fulfilling prophecy of enhanced output by the employee.

Employees that receive regular, scheduled feedback, including training, alongwith an increase

in expectations, actually have a higher level of worker output (Katcher and Snyder, 2003).

23
2.1.9.2. Employee Development Decreases Operational Costs

The hope is that employees who receive training in line with their individual or

organizational goals will become more efficient in what they do. Organizations should look at

the positive effects of training on employee performance, and consider employee

development as a targeted investment in making the workers stronger. More importantly,

development plans that include “train-the-trainer” (training that trains employees to become

trainers of a skill) can provide exponential benefits to the organization. This training can be

anything from how employees can do their own jobs better to employees being groomed to

replace their supervisors. In addition, employees who become trainers might be further

inclined to stay with the organization, and possibly reduce employee turnover (Katcher and

Snyder, 2003).

2.1.9.3. Perceived Benefits of Employee Development

Besides supporting the organization, employees might recognize that most types of employee

development initiatives provide them with benefits. Employee development programs that

range from certification to education reimbursement, even to basic job skills training, have a

certain cost to the organization that can easily be considered a benefit to the employee. Such

awareness on the part of the employee can also lead to greater loyalty to the organization as

well as enhanced job satisfaction. Training and development that can be added to the

employees’ résumés are big ticket items in terms of compensation plans (Taylor, 2000).

2.1.9.4. Employee Development Limits Organizational Liability

According to (Frost et al. 2000), most human resource professionals would agree that

limiting organizational liability when training employees is a very important aspect of

employee development. Certain jobs require training and certification in order for an

24
employee to

successfully execute the minimum job requirements related to that position. The proper

documentation of employee development before or during the employee’s completion of their

job cannot only help follow and develop training, but also limit liability in the case of human

error on the part of these employees. An example of how documented employee training

could be helpful would be if a stockroom employee were assigned the position of forklift

operator. Obviously, the organization would be expected to put this employee through all the

necessary training to ensure the employee can operate the equipments, and do so in

accordance with any applicable policies and regulations. Although employee training

documentation will almost never completely protect an employer from legal liabilities,

training and certification can hopefully reduce legal costs and reputation damage for the

organization (Frost et al., 2000). Costs that may be generated by the employee.

2.1.10. Impact of Training and Development on Organizational Productivity

Employee development is, in addition to training as reviewed above, the major factor in the

creation of employee human capital, which determines the long-term productivity of an

employee’s behaviour (Nel et a, 2004). While training is concerned with the employee’s

current job, development prepares the employee for future job requirements. Effective

development programmes allow management to maintain a workforce that can adequately

replace employees who may leave the company or who are moved to other areas. It also

allows for employees to cope with newly developed technology, and ensures that adequate

human resources are available for expansion into new areas. (Nel et al 2004) outlines the

following effects of training and development on organizational productivity:-

 Increased success of quality projects

 Reduction of project failures and defects

25
 Reduction of staff turnover

 Minimal supervision needs

 The ability to progress

 Greater capabilities to carry out more projects

 Changes in employee behavior

(Noe et al. 2003) compiled a list of different approaches for employee development.

Their approaches fall into four categories: formal education, assessment, job experience,

and interpersonal relationships. Formal education programs include short courses offered

by consultants, executive MBA programs, and university courses. These involve lectures

by experts, business games and simulations, adventure learning, and meetings with

customers. Assessment is the collection of information and the provision of feedback to

the employees about their behavior, communication styles and skills. Job experience

includes job rotation, promotion, transfer, temporary assignments and downward moves

(Noe et al., 2003).

2.1.11. Training and Development Needs Analysis (TNA)

This is an activity to establish the gap between the skills employees have and the skills they

do not have that they need to do their work more efficiently. It requires an investigation of the

needs of the organization prior to the implementation of a T&D program me to enable an

organization to achieve its set goals and objectives (Edralin, 2011; Stringfellow, 2011;

Fowler, 2009; Business Performance Pty Ltd, 2008). Effective needs analysis is essential

in today‘s changing workplace, where employees need to come to grips with new technology

and flexible production processes; this requires that they upgrade their skills and knowledge

on a constant basis (Patton & Pratt, 2002, Kunder,2000). Training can impact positively

and effectively on organizational performance when it is guided by the results of TNA (Chi

& Lin, 2008). The T&D department should identify employees‘ current skills, knowledge

26
and abilities and compare these with the desired levels for the company and employees to be

successful (Husain, 2011; Meyer, 2002). TNA provides answers to questions like: why is

training needed in the organisation? What training do employees need to perform their tasks

effectively; which individuals or group of individuals need training; and what type of T&D

method/s should be used? (Wexley & Latham, 1991).

Training need analysis also provides a basis for evaluating training and helps the organisation

align T&D with its strategic plan (Blanchard and Thacker, 2010). In the absence of such

analysis, T&D outcomes will rest on mere speculation and the training offered may serve

little or no purpose (Fowler, 2009). Needs analysis is necessary because it helps planners to

determine the conditions under which T&D activities will take place. Not all organisational

problems can be addressed through training; some may just require advice from managers or

a change in an individual‘s attitude and/or the organizational culture. Different types of

organizational problems call for different measures; furthermore some call for specific

training methods (Bratton, 2003).

2.1.12. Importance of Needs Analysis

Training needs analysis helps HR managers to obtain facts to solicit support from top

management for the implementation of T&D. An obvious means of obtaining management‘s

attention and support is to demonstrate that training directly affects activities in the

organization‘s various departments(Blanchard and Thacker, 2010).. Management tends to

support training when it is

demonstrated that trainees perform better on the job after the exercise. Both employers and

employees need to be motivated and this can be achieved by giving them reasons why

training should be conducted and why they need to participate in it. Such information can

only be obtained through conducting TNA. The TNA report provides a point of reference for

the performance levels, skills and knowledge of the organization and its individuals before

27
the training. It helps to highlight any shortfall in the skills and attitude employees need to

perform their jobs effectively (Akinfolarin & Alimi, 2011).

TNA should determine how the training program will fit with future organizational

strategic plans and objectives, by identifying the skills needs and specifying the strengths and

weaknesses of the organization. Lack of TNA not only contributes to a lack of application of

the skills learnt, but also has the potential to waste resources and time. Some organizations

spend substantial amounts of money on training more employees than they actually need or

on training the wrong employees (Capps & Capps, 2005).

Table2.1.12: Essential Areas for TNA

ESSENTIAL AREAS FOR TNA

Reason for T&D
Establish what is Lacking
What need be Achieved?
Select Appropriate Delivery Method/s
Budget Approval
Source: Adopted and modified from Fowler (2009) and Mello (2006,) through secondary
 Establish the needs, motivation and process.
 Establish what the individual and the organization
lacks now that would be achieved after training?
E.g. skills, behavior, knowledge, ability,
performance, job satisfaction etc.
 Establish the aims and objectives of the training.
 Establish the cost and expected benefits.
 Ascertain appropriate and cost effective training
methods.
 Establish the venue.
 Present budget to the management for approval.

research findings

2.2.Exploration of High Performance Management Techniques

Performance Management is defined by (Armstrong 2009) as a 'systematic process'

to improve the performance of a company by developing the individual's and team’s

28
performance. For these outcomes to be reached Performance Management should be

understood and applied utilizing an 'agreed framework of planned goals, standards and

competency requirements'. According to Armstrong, today's Performance Management is

implemented into organizations through the progression of 'management by objective and

performance appraisal that were developed some time ago' (Armstrong, 2009).

Similarly, to Armstrong, Redman and (Wilkinson 2009) depict that Performance

Management is used as a tool to connect the objectives of the organization to a set of work

targets for employees with 'objective setting and formal appraisal' at the core of this process.

The use of Performance Appraisal is moving from being a single method of the management

of performance, to becoming a more integrated fragment of the overall Performance

Management system.

The main aim of T&D is to impart knowledge, skills, attitudes and behaviors that improve

workers‘ performance and achieve the organization‘s objectives (Indradevi, 2010). When

employees receive training they acquire skills and knowledge that will stand them in good

stead for the future. Knowledge, skills and ability are referred to here as performance

competences; these are the characteristics that enable employees to accomplish their tasks.

Training helps employees to become competent, flexible, dynamic and able to adapt to the

needs of the organization (Obisi, 2011). (Nikandrou, Brinia, & Bereri 2009) found

that employees cited personal career growth and the need for new knowledge as reasons for

participating in training activities. (Santos and Stuart‘s 2003) study indicated that

individuals benefited from training through improved knowledge and skills, confidence, self-

efficacy and organizational satisfaction. Costner and Salazar (2011) suggest that training

directly influences workers‘ skills and impacts on their level of competence, while (Taiwo

2007) found an

association between effective training and the acquisition of the skills and knowledge

29
required for workers to perform well on-the-job. Furthermore, (Rosner 1999) observed that

T&D enhances employee morale, improves their skills and performance and helps them excel

in their jobs. As a result T&D has become an indispensable duty of human resource

departments in any organization, including those in the public sector

It is very difficult for an employee to perform well at the job place without any pre-training

(Thomas N. Garavan, 1997). Trained employees perform well as compared to untrained

employees (Partlow, 1996; Tihanyi et al., 2000; Boudreau et al., 2001). It is very necessary

for any organization to give its employees training to get overall goals of the organization in a

better way (Flynn et al., 1995; Kaynak, 2003; Heras, 2006). Training and development

increase the overall performance of the organization (Shepard, Jon et al., 2003). Although it

is costly to give training to the employees but in the long run it give back more than it took

(Flynn et al., 1995; Kaynak, 2003; Heras, 2006). Every organization should develop its

employees according to the need of that time so that they could compete with their

competitors (Carlos A. Primo Braga, 1995).

In recent times, T&D has been positively connected to job proficiency (Leberman et al.,

2006). The importance of T&D as means of organizational survival cannot be

overemphasized. This is especially true when the job involved is a complex one (Ng &

Feldman, 2009). An improvement in productivity partly depends on how well organizations

and their employees can change and innovate. However, innovation is contingent on how

well-trained and skillful employees are. Well-trained employees improve the ability of the

organization to be creative and creativity increases production through efficiency and

effectiveness. The link between T&D and productivity was substantiated by (Holton et al.‘s,

2000) study and can be traced back to (Becker's 1993) classic study whose fundamental

assumption was that education and training brings about increased learning. In turn, increased

learning brings about increased productivity and increased productivity brings about an

30
increase in wages and business earnings. Education and training has been found to increase

organizations’returns; which ensures their survival (Collier, Gree, Kim & Peirson, 2011,) .

Other studies have found that T&D results in increased productivity and performance (Khan,

Khan & Khan, 2011; Kyriakidou & Maroudas, 2010, Marimuthu, Arokiasamy &

Ismail, 2009; ILC, 2008; Aniekwu & Ozochi, 2010; Indradevi, 2010; Olaniyan & Ojo,

2008; Chiaburu & Lindsay, 2008). Furthermore, it has been established that training

enhances organizations‘ ability to achieve a high level of performance and foster better

performance outcomes (Ayarkwa, Adinyira & Osei-Asibey, 2012, Dysvik & Kuvaas,

2008;

Galanou & Pripora, 2009; ILC, 2008; Karthikeyan, Karthi, & Graf, 2010; Bourga,

Stoltzfusa,

McManusb, & Fry, 2010). A study carried out by the Centre for Business Research (2003)

found that three-quarters of the respondents felt that T&D improved labor productivity.

Furthermore, training was found to have a positive influence on the performance of civil

servants in Abia state, Nigeria. Almost half of those who had received any kind of training or

manpower development acknowledged that it had improved their performance, compared

with 21.2% of those who did not receive any form of T&D (Okereke & Igboke, 2011). In a

similar study, respondents reported increased output after T&D (Owusu-Acheaw, 2007).

Approximately 75% of Cost, (Bullock, & Potton‘s, 2003) study respondents

indicated that training had improved their productivity. (Senge‘s 1999) work can be used to

explain these results. He argued that learning in organizations (through T&D) leads to

knowledge acquisition, which leads to team knowledge sharing, greater motivation, social

interaction, flexibility and more creativity; together, these lead to an increase in quality

products, productivity and profit.

31
Furthermore, a study by (Farahbakhs 2010) indicated that employees’performance in public

organizations was higher after training than before training. (Rasmussen, 2005) emphasizes

that workers who are trained may be 230% more industrious than those who are untrained

and doing a similar job. (Colombano & Krkoska 2006) and (Nguyen, Truong & Buyens

2011) posit that positive organizational performance is closely related to training

programmes. Other studies have produced similar results (Knox & Walker, 2004; Maglen,

Hopskin & Burk, 2001; Bartel, 1994; Birdi, Patterson & Wood, 2007, Dearden, Reed &

Reenen, 2000; Leimbach, 2010). For instance, (Birdi et al. 2007) found that a five

percentage point increase in training is associated with a 4% increase in productivity. They

also established an average of -7% rate of return for firms that do not provide training and an

average of 24% for those that do (Almeiada & Carneiro, 2005). As organizations spent

more on training, so ―productivity increased by 47% in the manufacturing sector and by

12% in the services sector‖ among European organizations (Shoesmith, 2008,). Furthermore,

(Zwick 2003) (Nover & Novelis, 2011; Tharenou, Saks & Moore 2007; Mohamad, et al.

2009 and Ng & Siu, 2009) indicated a significant positive association between training and

organizational productivity. (Becker‘s, 1993) arguments are also applicable here. He argued

that individuals accumulate knowledge, expertise and skills through T&D that lead to or

bring about increase in productivity. Finally, the importance of T&D is apply summarized in

the following the paragraph:

Among others T&D increase productivity, improves the quality of work;

improves skills, knowledge, understanding and attitude; enhances the use of tools and

machines; reduces waste, accidents, turnover, lateness, absenteeism and other overhead costs,

eliminates obsolescence in skills, technologies, methods, products, capital management etc. It

brings incumbents to that level of performance, which is needed for the performance for the

job; enhances the implementation of new policies and regulations; prepares people for

32
achievement, improves man-power development and ensures the survival and growth of the

enterprise‖.

(Kayode, 2001 cited in Olaniyan, & Ojo, 2008)

The impact of T&D on employees’performance has not been as straight forward as

anticipated; there have been instances where the results have been different. For example,

(Eikebrokk and Olsen 2009) that there is insufficient consistent and definite evidence that

training leads to better performance, especially for SMEs. (Liao & Martin, 2011) did not

find any direct link between T&D and organizational performance, although they found

training to have an indirect but insignificant effect on production. Guest, (Michie, Conway,

& Sheehan,2003) found no association between training as part of HRM practiceand

corporate performance. (Lear 2010) found that the T&D on basic supervisory, management

and leadership skills was not effective in improving performance. However, he established

that T&D on interpersonal and technical skills had a huge impact in driving organizational

performance. Furthermore, (Rogers and Woodford 1999) and (Broad and Newstrom,

1992, cited in Buckley & Caple 2004) indicated that the majority of trainees felt that the

training they received did not impact on their job performance.

The retention of the employees is a significant factor in determining the returns to employers

providing training. This relates to the ability of an organization to recoup its investment in

training (Hansson, 2008).According to (Becker 1962 cited in Liao, Mo & Grant 2001)

trained employees are less likely to leave an employer, which suggests that training can be an

avenue through which employees can be retained in an organization. Inadequate initial

training, poor orientation to the job and lack of on-going training are considered among the

major factors contributing to high staff turnover (Blenkner & Rose, 2006). In other words, a

lack of T&D can cause some employees to leave an organization. The main reason is that

untrained employees are more likely to experience a sense of inadequacy, are not committed

33
to the job, lack job fulfilment and perform poorly (Blenkner & Rose, 2006). (Michie,

Conway et al 2003).(Adeniji 2010) & Greenhalgh & Mavrotas 1996) found training to

have significant effect on employee tenure. Furthermore, (Korpi and Mertens 2003)

indicated that the turnover rate for those who did not receive any training was up to 15%

higher than those who received vocational training. (Flaherty 2007 and Acton & Golden

2002) found that participation in tuition reimbursement training exercises increase employee

retention. Furthermore, it has been established that additional training has helped

organizations reduce both voluntary and involuntary turnover more than organizations that do

not implement regular training (Molina, and Ortega, 2003). A staples retail outlet that

experienced high employee turnover was able to increase retention through implementing a

carefully designed training plan (Shoesmith, 2008). A survey by the American Management

Association (AMA) of 302 human resource executives confirmed that some development

issues were of prime importance to employees and enhanced employee retention (Smith,

2011). The above examples validate the robustness of the relationship between T&D and

employee retention and also highlight that formal job training is a good investment for many

firms in terms of reducing employee turnover and turnover intention.

Organizations invest huge amount on the human resource capital because the performance of

human resource will ultimately increase the performance of the organization.Performance is

the major multidimensional construct aimed to achieve the results and has strong link to

strategic goals of the organization (Mwita, 2000).Performance increase the effectiveness and

efficiency of the organization which is helpful for the achievement of the organizational

goals.But the question arise that how an employee can work more effectively and efficiently

to increase the growth and the productivity of the organization (Qaiser Abbas and Sara

Yaqoob).There are many factors which improves the work of the employees such as flexible

scheduling, training etc.

34
2.2. RESARCH DESIGN & FRAME WORK

Impact of Training and Development on Organization Performance Variables:

1- Independent Variable

 Training & Development

2- Dependent variables

 Organization Performance

Elements of independent variables

 Training & design

 On the job training

 Delivery style

2.2.1.1. Training Design

It is very necessary for the organization to design the training very carefully (Michael

Armstrong,

2000). The design of the training should be according to the needs of the employees

35
(Ginsberg, 1997). Those organizations which develop a good training design

according to the need of the employees as well as to the organization always get good results

(Partlow, 1996; Tihanyi et al., 2000; Boudreau et al., 2001). It seems that

Training design plays a very vital role in the employee as well as organizational performance.

a bad training design is nothing but the loss of time and money (Tsaurand Lin, 2004).

2.2.1.2. On the Job Training

On the job training helps employees to get the knowledge of their job in a better way

(Deming, 1982). To implement the study following dependent and independent variables are

shown in the theoretical framework. The training & development is the independent variable

and organizational performance is the dependent variable. These two variables have been

chosen to see the relationship between these variables i.e. to see the impact of Training &

development on the organizational Performance.

2.2.1.3. Delivery Style

Delivery style is a very important part of Training and Development (Carlos A. Primo Braga,

1995). Employees are very conscious about the delivery style (Michael Armstrong, 2000). If

someone is not delivering the training in an impressive style and he is not capturing the

attention of the audience it is means he is wasting the time (Mark A. Griffin et al., 2000). It is

very necessary for a trainer to engage its audience during the training session (Phillip seamen

et al., 2005). Delivery style means so much in the Training and Development The theoretical

frame work can also be seen from the following diagram.

36
(Amos & Ristow 2004) studied that effective management of performance was critical if the

goals and objectives of the organization were to be achieved. Organizations were in existence

to succeed and the achievement of the strategy through individual output places the spotlight

directly on performance and the management thereof. An integrated human resource strategy

supports the fulfilment of business strategy and the attainment of organizational goals. This

integrated HR strategy represents a network of human resource processes, geared towards the

achievement of business goals and introduces links of performance to sourcing, staffing,

development, rewards, recognition and employee relations. According to (Storey & Sisson,

1993) concept of performance management appeared relatively self-explanatory. It related to

overseeing employee job performance. Formally it was defined as “an interlocking set of

policies and practices which have their focus on enhancing achievement of organizational

objectives through concentration on individual performance.” Performance management

encompasses cascading overall business goals and objectives into individual employee

objectives. A study positive association has been found by (Delery & Doty, 1996 & Husilid

1995) between organizational performance and individual performance appraisal. According

to (Huselid, 1995 and Ichniowski & Shaw, 1999) effective HR practices for recruitment and

selection were linked to job performance. (Huselid, 1995 and Gelade & Ivery, 2003)

studied that motivation of an employee was opened to the elements to have a momentous

impact on job performance. (Byars and Rue 2006) defined performance as the degree to

which an employee accomplished the tasks that made his or her job. In order to establish

whether such tasks have or are being accomplished, indicators or measures are needed to

assist in tracking, measuring and managing this job performance. In an effort to track and

measure job performance, outputs and behaviour, organizations make use of key performance

indicators (KPIs).

37
 (Els & De Villiers, 2000) discussed KPIs were statistics and other measures that were

considered to be critical indicators that reflect key job performance behaviours. Clear and

specific performance standards or measures assist in ensuring that employees know what he

or she was required to perform, but to what benchmark this required to be completed. (Meyer

& Donaho, 1979) studied that employees further serve future purposes in aiding the ease of

performance assessment, guiding counselling interviews and defining the parameters for

performance discipline.

2.2.2. Factors Affecting Employee Performance

(According to Anderson 2003), the following are the factors affecting employee

performance to increase productivity:

2.2.2.1. Experience

Hiring employees who do not have the proper background for the job is one of the things that

start a performance downward spiral (Anderson, 2003:122). Company training should be

used to enhance the employee's background. If an employee has undergone extensive training

but is still experiencing performance issues, then the problem could be that the employee

does not possess the necessary experience to do the job.

2.2.2.2. Work–Home Balance

As much as an employer may not want to be affected by the personal life of his employees,

personal problems can sometimes affect employee performance. Managers need to be

38
sensitive to employees’ personal problems, and be prepared to discuss the issues with

employees when necessary. If an employee requires time off to deal with a personal problem,

then granting that time off will help to show all employees that the company values them

(Anderson, 2003).

2.2.2.3. Manager Interaction

If an employee does not get feedback from his/her manager, then he/she has no idea

how to rate his/her performance. Managers should be trained to give positive and negative

employee feedback. In negative situations, the manager should work with the employee to

create a programme that will help address the performance shortcomings. It is easier for

employees to improve their performance when they know what they are doing right and what

they are doing wrong(Anderson,2003).

2.2.2.4. Setting Goals

To help employees improve their performance, employers need to set goals that employees

are required to achieve. Performing to the minimum standards means the employee is doing

his job, and that can help an employee understand what is expected of him at a minimum. It

would also be helpful to create incentives that will give employees motivation to go beyond

the set goals (Anderson, 2003).

2.3Employee Motivation and Commitment to Organization

(Hackman and Oldham's 1976) model of job enrichment propose that jobs can be made

more motivating by increasing the following: skill variety (the number of different skills

required by the job), task identity (the degree to which the job produces something

meaningful), task significance (the importance of the work), autonomy (the degree to which

the individual has freedom in deciding how to perform the job), and feedback (the degree to

39
which the individual obtains ongoing. One psychological view suggests that very high levels

of intrinsic motivation are marked by such strong interest and involvement in the work, and

by such a perfect match of task complexity with skill level, that people experience some kind

of psychological "flow," a sense of merging with the activity they are doing

(Csikszentmihalyi 1975).The major psychological view suggests that extrinsic motivation

works in opposition to intrinsic motivation (Deci 1975; Deci & Ryan 1985). Extrinsic

motivation takes place when individuals feel driven by something outside of the work itself

such as promised rewards or incentives. In general, these theorists suggest that, when strong

extrinsic motivators are put to work, intrinsic motivation will decline.

Generally, there is a positive relationship between T&D and workplace performance

(DrakeKnight, 2012). Employee development is not only an endeavour to enrich the quality

of an employee‘s knowledge and skills, but also prepares them to undertake specific tasks to

improve their job performance (Okoh et al 2002). For instance, ergonomic training aims to

impart knowledge and skills in the efficient

use of office facilities which can improve work flow, employees‘ effectivness and overall

job performance (Robertson & Huang, 2006). Workers‘ ability to control their working

environment improves individual job performance.(Clombo and Stanca 2008) indicated that

while training has a positive impact on clerks, it has a significant but negative impact on

executives. The differences between the impact of training on white and blue collar workers

could be due to the fact that white collar workers‘ productivity-enhancing skills are generally

acquired through advanced education, while on-the-job training is sufficient to enhance the

knowledge and skills of blue collar workers. (Manasa & Reddy 2009) and the Centre for

Management Development (CMD) (2011) found that, with proper motivation, T&D canresult

in productivity improving to as high as 90%. (Akinwumi and Adeyanju 2011)

established that level of education and training have a significant impact on teachers‘

40
performance in Nigeria. Training and development enhance other qualities in trainees, such

as an improvement in profit making and service quality, the proper use of employees,

improved employee safety and motivation, reduced resistance to change, reduced costs as

result of a decrease in mistakes, and improved competence and job performance (Olaniyi,

2006). (Lockers & Latham‘s 1990) goal setting theory argued that a

consciously set goal that is clear and challenging can lead to increase in performance. This

explains why T&D leads to improved performance. Trainees are aware that the aim of

T&Dresult in productivity improving to as high as 90%. (Akinwumi and Adeyanju 2011)

established that level of education and training have a significant impact on teachers‘

performance in Nigeria. Training and development enhance other qualities in trainees, such

as an improvement in profit making and service quality, the proper use of employees,

improved employee safety and motivation, reduced resistance to change, reduced costs as

result of a decrease in mistakes, and improved competence and job performance (Olaniyi,

2006 cited in Shadare, 2010). (Lockers & Latham‘s 1990) goal setting theory argued that a

consciously set goal that is clear and challenging can lead to increase in performance. This

explains why T&D leads to improved performance. Trainees are aware that the aim of T&D

is to acquire competencies to achieve an organization‘s set goals. Social exchange theory is

another motivational theory which encourages trainees to apply their knowledge on-the-job

because of what they hope to gain in the end. Therefore, T&D should be a core strategic

intent for organizations that want to grow and be productive. However, not every study has

found a significant positive association between T&D and an increase in performance,

(Cooney, Terziovski, & Samson, 2002) indicated that employee training was found to have

a small effect on employees‘ performance.

When employees receive training they acquire skills and knowledge, which leads to reduced

working hours as a result of increased efficiency. This enables them to do their jobs better,

41
become more efficient, gain self-esteem and raises their morale, which lead to job satisfaction

(Ryan, 2009; ILC, 2008; Forsyth, 2001; Ellinger et al., 2003 cited in Rowold, 2008). It

has been established that T&D is positively and considerably associated with job satisfaction

and that job satisfaction is also positively and significantly associated with workplace

performance on most measures of performance (Felsteada, Gallieb, Greenc, & Zhoud,

2010, Schmidt, 2007; America, 2001, Donald, 2009). The two domains are mutually

reinforcing; thus, as workers derive more satisfaction from working in a successful

organisation, so their performance continues to improve (Georgellis & Lange, 2007). Studies

have found that respondents who participated in training demonstrated higher degrees of

understanding of job requirements and hence, job satisfaction (Georgesllis & Lange, 2007;

Glaveli & Karassavidou 2011; Spears & Parker, 2002,). Appropriate T&D makes

employees happier in their jobs and they feel valued by their employers (Shelton, 2001). On

the other hand, according to (Melymuka 2000 Cited in Schmidt, 2007), , employee

dissatisfaction was partly attributed to their lack of fulfilment in their jobs, which was caused

by the failure to receive the training they needed. (Blum & Kaplan 2000) observed that the

opportunity to acquire new competences is crucial to job satisfaction. (Shields &

Ward,2001) also found that financial benefits impact less on job satisfaction than the

opportunity to train among nurses in the UK. (Randstad North Nankervis, Compton and

McCarthy 1999) were of the opinion that effective training would not only equip employees

with most of the knowledge and skills needed to accomplish jobs, but also contribute to job

satisfaction. A survey of 271 network professionals established that even perceived

opportunities to learn new skills was sufficient to lead to improved job satisfaction (Blum &

Kaplan, 2000)

Furthermore, (Siebern-Thomas‘s 2005) analysis of 13 countries in the European Community

Household Panel between1994 and 2001, found that job satisfaction was inclined to be higher

42
where there was access to workplace training. (Molina and Ortega 2003) demonstrated that

training can have a positive outcome on organizational performance by enhancing employee

job satisfaction. (Senge 1999 and Becker 1993) note that training leads to the accumulation

of knowledge, expertise and skills and that this results in improved job performance; this

enhances job satisfaction, as explained above, therefore these are therefore mutually

reinforcing. Thus, management can improve employees‘ job satisfaction by increasing the

rate of T&D activities that impact positively on their general skills acquisition (Jamshed,

Halepota, & Irani, 2010; Jones, Jones, Latreille, & Sloane, 2008). Job satisfaction, which

is a product of T&D, is not only an important source of employees‘ happiness, but also an

essential factor that may influence their intention to quit or not quit the organization

(Rowold, 2008).

Training transfer depends on the extent to which employees or trainees are motivated to apply

their newly acquired skills and knowledge on the job. The motivation of trainees prior to,

during and after training is a vital factor for transfer of learning (Leberman, et al., 2006).

Transfer motivation can be regarded as the quest to use the knowledge and skills learned in

training on-the-job and to fulfil personal ambitions. According to (Holton III & Bates, 2008)

and (Holton III & Baldwin 2007) motivation to transfer is the extent to which employees are

inspired to make use of the skills learned in training in their work. Employees can either be

motivated or demotivated and it is assumed that the level of motivation or demotivation

determines the extent to which employees/trainees will transfer the skills and knowledge

learnt in training.The motivation to transfer can be influenced by the extent to which

employees feel they can perform their jobs and feel that the new skills and knowledge will

enable them to perform their tasks more effectively. Performance-outcomes expectations are

one of the motivating factors; this reflects the extent to which employees believe that using

the new skills and knowledge they acquired in training will lead to reward or

43
acknowledgment (Holton III & Bates, 2008). (Joblbauer et al. 2011) found that motivation

to transfer influenced employees‘ transfer rate in a situation of high positive consequence

expectations. That is to say, the greater the perception that positive transfer will lead to

greater rewards, the more likely workers will try to use acquired competencies in their

everyday tasks. These findings are consistent with expectancy theory, which suggests that

learning is likely to occur when the trainee believes that the content of the intervention is

linked to a positive outcome. A trainee‘s belief that training will lead to better outcomes, such

as promotion or financial reward will enhance the trainee‘s motivation to learn and achieve

higher performance (Tziner et al., 2007). Therefore it is important for management to find

ways to improve potential trainees‘ self-confidence or self-belief and motivation.

Motivating employees to transfer learning is essential to successful training interventions and

aids transfer of skills on-the-job (Gegenfurtner et al 2008). (Andrea and Mohamed‘s

2003) study amongst supervisors indicated that the perceived benefit of new skills to their job

motivated them to apply them. (Ng & Datmalchian 2011,) found that training benefits an

organization most when it is complemented by motivation policies. (Mohamad, Yassine &

Karima 2009) and (Scaduto, Lindsay & Chiaburu 2008) established a positive relationship

between transfer motivation and performance outcomes. However positive perceptions of the

relevance (perceived content validity) of the training had the greatest effect on transfer

motivation. That is to say, the more trainees have positive perceptions about training

initiatives, the more they are motivated to transfer the new knowledge.

Openness to change on the part of individual employees prior to and after training is very

important in transferring the knowledge acquired during training, (Abozed et al., 2010).

Training and development has been recognised as an effort that enables employees to reach

their maximum potential and subsequently receive rewards (Forsyth, 2001). Reinforcement

theory can be employed to describe why some employees effectively transfer their learning

44
on the job while others do not. In other words, some T&D interventions yield results, while

others don‘t. Reinforcement theory emphasises that people are motivated to perform or not

perform (positive/negative reinforcement) due to past outcomes of a similar exercise.

Trainees will be willing to learn and transfer learning only if they trust that their efforts will

lead to positive outcomes like acknowledgement and rewards; if not the opposite will be the

case. The same is true of social learning theory which emphasises that behaviour that is

rewarded tends to be repeated and is adopted by the observer. Skinner‘s theory posits that

outcomes that are positive are repeated, while those behaviours that lead to negative

outcomes are not repeated. If past T&D did not lead to improved performance, financial

reward or promotion for those who took part, employees may be unwilling to take part in

training intervention programmes or apply their new learning in their jobs. Even when they

are willing to be trained, they may not be keen to transfer their learning on the job; hence, a

lack of transfer of training. The extent to which the application and non-application of news

skills is rewarded or punished in an organization could influence their transfer. Therefore,

trainers need to establish what outcomes employees find most attractive or unattractive in

order to be able to inspire them to learn new knowledge and transform their behaviours.

2.3.1. Work Environment/Climate

The workplace situation plays a key role in the transfer process because this is where

employees will make use of their new learning. Work environment here refers to ―a

perceptual medium through which culture and other work environment factors influence job

attitude and behaviour‖ (Bate & Khasawneh, 2005). It includes members‘ perceptions and

relationships that affect job performance in a given organisation (Hatala & Fleming, 2007).

The three common obstacles to transfer are lack of reinforcement on the job by

supervisors/managers, interference from the immediate work environment, e.g. unsupportive

co-workers urging the trainee to revert to old work attitudes and a non-supportive

45
organizational culture. Work environment factors have a significant influence on whether

trainees will use the learned skills and knowledge once they return to the workplace. The

organizational climate or work environment refers to those factors in the workplace that

facilitate or hinder the use of skills and knowledge gained during training. A culture of

continuous learning sustains skill transfer, which improves productivity because of the

positive influence it has on individual motivation and behavioural change (Bates &

Khasawned, 2005). The most important work environment factors in this context include

supervisors/managers, co-workers or peer support and encouragement, personal outcomes

(both negative and positive), and resistance to change. Transfer of training does not occur

automatically; trainees and managers have to make effort for it to happen. If the socialisation

during training does not match the workplace environment, obstacles will arise to transferring

learning. There is therefore a need for a supportive environment for learning to be transferred.

For example, trainees need support from their supervisor/manager‘s and colleagues. The

supervisor determines whether new learning can be implemented or not (Leberman et al.,

2006). Irrespective of how well a training initiative was designed and executed, it will not

yield the desired transfer outcomes when the work environment does not inspire the use of

targeted skills and knowledge. The organizational climate is very influential in determining

whether new skills will be transferred to the work setting or not (Egan & Barlett, 2004). A

good working environment provides occasions to apply new skills and cues to remind

employees about the skills learned (Liebermann, & Hoffmann, 2008).

The impact of T&D on employee and organizational performance depends, to a large degree,

on what happens in the workplace after the training programme.(Sibthorp, et al 2011)

indicate that work environment factors like the supervisor and peer support are important in

transfer of learning. (Nikandrou et al. 2009)

amongst others; established that the organizsational environment influences training transfer.

46
Supervisor‘s support comprises the clarification of performance expectations after training by

the supervisor and ―setting realistic goals based on the training‖ (Holton et al., 2008). It

includes working closely with employees to solve any problems they encounter when they

are applying learning on the job. Supervisor‘s support has been found to correlate positively

with transfer of training to enhance employees‘ job performance or success (Govindarajulu,

2009). Supervisors should encourage subordinates to attend training and apply the skills

learnt. Supervisors that signal that new skills should be applied as and when due, will

invariably promote learning transfer. An unsupportive supervisor, on the other hand, can

simply ignore or discourage the application of the new skills. (Okereke and Igboke, 2011)

found that a supervisor‘s positive support of the use of knowledge gained in training

promotes the transfer of knowledge by up to 92%. On the other hand, a lack of an opportunity

to transfer skills and knowledge has been blamed for employees not being able to use

learning (Lim, 2006). Positive outcomes result when the attitudes of authorities like

supervisors exert positive influence on the freedom of their subordinates to use their new

skills for their job practices. When the supervisor is well-disposed towards training, he/she

will encourage the use of new knowledge; however, if his/her attitude is negative, the chances

are that he/she will not encourage his/her subordinates to apply the knowledge acquired on

the-job (Cromwell & Kolb, 2004). Supervisors are critical in supporting employee

participation in training and ensuing that the skills learnt are applied on-the-job. Therefore,

the effect of T&D on job performance will depend on the attitude of the supervisor towards

the training content and the trainees themselves. (Newman et al. 2011 Young, (2007)and

Noe, Sears, & Fullenkamp (1990 cited in Young, 2007) supported the argument that the

attitude of supervisors, opportunity to use skills and openness to change are essential factors

that influence training transfer.

47
 Positive personal outcomes consist of the prospect of career progression in the

organization, improved personal job satisfaction, becoming more productive, improved work

effectiveness, and an increase in remuneration (Holton III & Bates, 2008). Employees attend

training for many different reasons including expectations that training will positively affect

their career. Employees who expect returns after training are likely to use their newly-

acquired skills (Daffron & North, 2005). However, the (Ashridge Business School 2010)

study found work environment to be a weak predictor and facilitator of transfer of training.

As (Bate and Khasawneh 2005) note, the workplace climate is not restricted to the work

environment, but refers to how employees and employers respond to it.

2.3.2. Employees’s Organizational Commitment

Organizational commitment has three parts: affective, continuance and normative

commitment. Affective commitment is described as passionate affection for, empathy with,

and participation in the achievement of organizational objectives (Ugboro, 2006). Affective

commitment occurs in an organization when employees‘ values are aligned with those of the

organization. In such a case, it becomes normal for the employees to be emotionally attached

to the organization (Ugboro, 2006). Continuance commitment, on the other hand, is

described as employees‘ keenness to continuing working in an organization because they

have served it for many years; they stand to lose should they leave the organization (Ugboro,

2006). Normative commitment can be described as a broad loyalty and feeling of duty to the

organization that results from an individual‘s belief that this is the moral and right thing to

do. The employee believes that they ought to be committed to the organization that provides

them with their daily bread, even if this requires personal sacrifices (Ugboro, 2006).

Well-trained employees are more competent and relish the opportunity to take control of their

jobs. These positive outcomes lead to more committed employees who are likely to remain in

the organization (Owoyemi et al., 2011; Brum, 2007). Reinforcement theory suggests

48
that behaviour is controlled by its consequences (Jonck, 2001); an employee‘s decision to be

more committed to the organization after training could stem from past experience of

employees being promoted or rewarded for improving their performance after their training

encounter. Further, employees, who view T&D as an incentive have more binding

commitment to achieving organizational goals and commit themselves to the organization

where they have career prospects (Silberman & Philips, 2006; Brum, 2007; Klein, 2001;

Smith, 2011). Young employees view T&D as very important, because they want the

opportunity to grow and advance their careers. They equally want to make a tangible

contribution to the growth of the organization they work for. (Oloyede 2005) argues that

improving workers competences enhances productivity as well as

commitment and motivation. Highly committed employees are more likely to be motivated

and involved in activities that achieve organizational objectives. This offsets many direct and

indirect costs which an organization may bear as a result of employees leaving (Newman et

al., 2011; Kuvaas & Dysvik, 2009; Brum, 2007)

The points made in the above paragraph support the social exchange theory which posits that

individuals are likely to support issues that they stand to gain from. Employees are happy to

work for and identify with an organization that is prepared to invest money in their career

advancement (Wilson, 2000). Companies with highly committed

employees can be 200% more productive than low-commitment companies (Flanagan,

2010). The same study found that 80% of employees who

received T&D felt strongly committed to their organization. (Bulut and Culha 2010) found

that training positively affected employee commitment, while (Sunyoung & Hea 2008)

demonstrated that HRD programmes like on-the-job training, mentoring, coaching and self

development significantly influence organizational commitment.(Abbas and Yagoob,2009)

observed that a leadership development programme influences employees‘ attitude,

49
commitment and trust in the organization. (Natarajan & Dinesh‘s 2011) study of 220

employees in India indicated that workers trained at younger age who stay longer in training,

show more commitment than other employees. The empirical evidence has clearly

demonstrated the importance of T&D to employees‘ organizational commitment; therefore,

there is a need for organizations to engage in T&D as a means to enhance such commitment.

2.3.3.Conclusion

New T&D techniques have influenced the manner in which training is conducted.

Successful training depends to some extent on the appropriateness of the training method

used. Recurrent variations in technology and job design coupled with the increasing

importance of learning to both staff and the organization, have led to the transformation of

T&D techniques (Brum, 2007).

Different technologies, e.g. e-learning or computer-based learning, offer many opportunities

and capabilities for enhancing employee T&D (Dysvik, 2009). Training and development can

contribute to organizational effectiveness by decreasing staff turnover and turnover intentions

both in the short and long term and motivate employees to contribute to the collective effort

to achieve the overall goals of the organization. Participating in training enhances employees‘

performance competences (knowledge, abilities and skills) (Sunyoung & Hea 2008).

Employee development is not simply an endeavour to enrich the quality of an employee‘s

knowledge and skills, but a way of preparing him/her to undertake specific tasks to improve

his/her job performance. (Smith, 2011). It has been established that T&D is positively and

considerably associated with job satisfaction and that job satisfaction is also positively and

significantly associated with workplace performance on most measures of performance.

Training and development leads to more committed employees and committed employees are

more likely to remain in the organization.

50
CHAPTER 3

3.HYPOTHESIS DEVELOPMENT

Hypothesis development is very important because acceptance and the rejection of

hypothesis show the significance of the study. On the basis of literature review above

theoretical frame work and questionnaire we came to develop following hypothesis.

In the training & development organizational performance is also effected by the training

design. Therefore our first hypothesis is:

H1: Training design has significant effect on the organizational performance.

To increase the knowledge and skills in the job training is given to the employees therefore

our second hypothesis is:

H2: On the job training has significant effect on the organizational performance.

During training & development the delivery style of the person who is giving the training

also effects the organizational performance so our third hypothesis is:

H3: Delivery style has significant effect on the organizational performance.

By combining the above mentioned hypothesis our fourth hypothesis is:

H4: Training & development has significant effect on the organizational performance.

51
3.1. Research Questions

The questionnaire is set of questions that is full of traits and clues in ordered that respondents

Can tick appropriate clue of her opinion. This was also the prepared following the problem,

literature review and conceptual frame work of the study. The questionnaires distributed to

100 respondents and all were completed.

The Questionnaire is attached to appendix.

1. Does training and development improve the performance of staff?

2. Do the T&D initiatives impact on employees‘ (a) knowledge, (b) skills, (c) ability,

(d) morale and (e) overall performance (f) commitment, (g) turnover intention,

(h) job satisfaction, and (i) productivity?

3. Do the T&D initiatives impact on employees at various levels and departments

equally or differently?

4. Does training and development have an effect on the performance of employees for

the achievement of the organizational goal?

5. Does the organization benefited with staff training and development program?

6. Do T&D initiatives improve individual and overall organizational performance?

7. Can a new framework for essential practices for T&D be formulated to enhance

the efficient planning and implementation of T&D in organizations?

8. Increment in salary motivated employees performance?

9. Is performance based promotion policy leads to improvement in employees

performance?

10. Compensation of employees for achievement of target leads to improvement in

employees performance?

Four hypotheses were developed to test the objectives of the study.

52
CHAPTER4

4.RESEARCH METHDOLOGY

4.1. Primary Data

The primary data formed part of the empirical research. This study applied multi-method

approach of data collection processes, which included the use of questionnaires and

interviews. The data were partly obtained through an in-depth questionnaire administered to

the 100 employees of different organization who attended training programs aimed at

improving service quality and productivity. Further data were collected by means of an in-

depth interview questionnaire, which was administered through personal interviews with the

Directors.

4.2. Secondary Data

Secondary data collection involved reviewing previous research on T&D both within and

outside the organizations, using both local and international accredited journals. The findings

of the study were analysed against current T&D models and their impact on performance.

The literature review is incorporated with the analysis of the primary data. A detailed analysis

of both primary and secondary data collection methods used for this study is provided in this

chapter. The study sample comprised of 100 employees of different organizations. The

sample is mixed like both male and female. The data is collected through a questionnaire

consists of 10 questions. All questions are close ended

questions with the use of a five point Likert scale consisted of strongly disagree, disagree,

neutral, agree and strongly agree. All questionnaires were distributed

and collected by hand from the offices of the organizations in the office timings.

Ninety five questionnaires were collected after one week. 95 of them gave the response to our

questionnaire. After checking them 79 were found correct and the respond rate was 83%.

These 79 questionnaires were included in the study. The analysis of the questionnaire was

53
undertaken using Statistical Package for Social Sciences (SPSS). All mean and

medians were calculated using SPSS. Descriptive statistics was used to determine the

independent variables and to conclude the results on the basis of secondary and primary data.

Most of the results consists of secondary data.

4.3. Discussion Hypothesis

It is very necessary for the organization to design the training very carefully. The design of

the training should be according to the needs of the employees. Those organizations which

develop a good training design according to the need of the employees as well as to the

organization always get good results It seems that Training design plays a very vital role in

the employee as well as organizational performance. a bad training design is nothing but the

loss of time and money All these results prove our first Hypothesis which is H1: Training

design has significant effect on the organizational performance. And it has a positive effect

on the organizational performance. It improves the organizational performance. As we see in

the table that most of the means are in between the bracket of 4-5 and 3-4, it means that most

of our respondents think that Training Design has significant effect on the organizational

performance. This also proves our first hypothesis which is; H1: Training design has

significant effect on the organizational performance. If we see the z-test value it lies in the

critical region. It means the data and the results are significant of our first hypothesis.

z - Test:
Variable 1 Variable 2 4.278481013
Mean 4.253164557 79
Observations 79
Hypothesized Mean Difference 0
z -0.205412008
P(Z<=z) one- tail 0.41862512
z Critical one -tail 1.644853627
P(Z<=z) two -tail 0.83725024
z Critical two - tail 1.959963985

54
Descriptive
Statistics
Std.
N Mean Variance
Deviation
Training Design 79 4.2532 .79208 .627

Training Design 79 4.2785 .71498 .511

Training Design 79 3.8734 1.18069 1.394

Training Design 79 3.6203 1.14694 1.315

Training Design 79 3.1139 1.39585 1.948

On The Job
79 4.1519 1.18850 1.413
Training
On The Job
79 4.1392 1.16282 1.352
Training
On The Job
79 3.6709 1.09453 1.198
Training
Delivery Style 79 3.8987 .95535 .913
Delivery Style 79 4.2025 1.29476 1.676
Delivery Style 79 2.7975 1.27480 1.625
Delivery Style 79 4.2278 .79983 .640
Training &
79 4.4430 .67457 .455
Development
Training &
79 4.5316 .50219 .252
Development
Training &
79 4.4557 .50122 .251
Development
Valid N (list
79 .627
wise)

z-Test:
Variable 1 Variable 2
Mean 4.151898734 4.139240506
Observations 79 79
Hypothesized Mean Difference 0
z 0.066067436
P(Z<=z) one-tail 0.473662068
z Critical one-tail 1.644853627
P(Z<=z) two-tail 0.947324136
z Critical two-tail 1.959963985

55
 On the job training helps employees to get the knowledge of their job in a better way.

People learn from their practical experience much better as compare to bookish knowledge.

On the job training reduces cost and saves time. It is better for the organizations to

give their employees on the job training because it is cost effective and time saving.

It is good for organization to give their employees on the job training so that their employees

learnt in a practical way. All these results prove our second Hypothesis which is H2: On the

job training has significant effect on the organizational performance. Andit has a positive

effect on the organizational performance. It improves the organizational performance. As we

see in the table that most of the means are in between the bracket of 4-5 and 3-4, it means that

most of our respondents think that On the Job Training has significant effect on the

organizational performance. This also proves our second hypothesis which is; H2: On the job

training has significant effect on the organizational performance. And it has a positive

effect on the organizational performance. It improves the organizational performance. . If we

see the z-test value it lies in the critical region. It means the data and the results are

significant of our second hypothesis.

z-Test:
Variable 1 Variable 2
Mean 4.202531646 2.797468354
Observations 79 79
0
z 6.684927778
P(Z<=z) one-tail 1.1552E-11
z Critical one-tail 1.644853627
P(Z<=z) two-tail 2.3104E-11
z Critical two-tail 1.959963985

56
Delivery style is a very important part of Training and Development. Employees are very

conscious about the delivery style. If someone is not delivering the training in an impressive

style and he is not capturing the attention of the audience it means he is

wasting the time. It is very necessary for a trainer to engage its audience during the

training session. Delivery style means so much in the Training and Development.

All these results prove our third Hypothesis which is H3: Delivery style has significant effect

on the organizational performance. And it has a positive effect on the organizational

performance. It improves the organizational performance. As we see the results some

of the respondents disagree with the term that Delivery style has a significant effect on

organizational performance. But most of the respondents lie between the brackets of 4-5. So

if we consider the majority. The majority of our respondents say that delivery style is very

important in the training. And it has a positive effect on the organizational performance. It

improves the organizational performance. . If we see the z-test value it lies in the critical

region. It means the data and the results are significant of our third hypothesis.

z-Test:
Variable 1 Variable 2
Mean 4.53164557 4.455696203
Observations 79 79
0
z 0.933440973
P(Z<=z) one-tail 0.175296167
z Critical one-tail 1.644853627
P(Z<=z) two-tail 0.350592333
z Critical two-tail 1.959963985

57
It is very difficult for an employee to perform well at the job place without any pre-training.

Trained employees perform well as compared to untrained employees. It is very

necessary for any organization to give its employees training to get overall goals of the

organization in a better way. Training and development increase the overall performance of

the organization. Although it is costly to give training to the employees but in the long run it

give back more than it took. Every organization should develop its employees according to

the need of that time so that they could compete with their competitors. All these results

prove our fourth Hypothesis which is H4:Training & development has significant

effect on the organizational performance. And it has a positive effect on the organizational

performance. It improves the organizational performance. As we see in the table that most of

the means are in between the bracket of 4-5, it means that most of our respondents think that

Training and Development has significant effect on the organizational performance. This also

proves our fourth hypothesis which is; H4: Training & development has significant effect on

the organizational performance. . If we see the z-test value it lies in the critical region. It

means the data and the results are significant of our fourth hypothesis.

4.4. Managerial Implications

Training and development is very important for an organization to compete with this

challenging and changing world. Training and development is basically directly related to

employee but its ultimate effect goes to organization because the end user is organization

itself. This study will help organization to understand the importance of Training and

Development. It will also help organization to understand which factors are important to keep

in mind during the training and how a good training can be deliver to their employees. It will

help them to understand that it is very necessary for them to give training to their employees

so that they could perform the assign task in a better way.

58
4.5. Conclusion Hypothesis

Training and Development has positive effect on Organizational Performance.

Discussion of all the results proves the hypothesis; H1: Training design has significant effect

on the organizational performance, H2: On the job training has significant effect on the

organizational performance, H3: Delivery style has significant effect on the organizational

performance and H4: Training & development has significant effect on the

organizational performance. All these have positive effects on the Organizational

Performance. It improves the Organizational Performance. On the Job Training is very

effective and it also saves time and cost. Training and Development, On the Job Training,

Training Design and Delivery style have significant effect on Organizational Performance

and all these have positively affect the Organizational Performance. It means it increases the

overall organizational performance. The T&D intervention is effective in enhancing

employees’a) (i)knowledge, (ii) skills, (iii) ability, (iv) morale, (v) confidence and (vi) overall

performance. b) There is a significant relationship between employees‘ competence

gained through T&D and (i) employee commitment, (ii) turnover intention and (iii) job

satisfaction.

There are significant differences in the influence of T&D on a) administrative and

technical staff‘s (i) competence, (ii) job satisfaction, (iii) performance, (iv) turnover intention,

(v) commitment and b) senior staff‘s (i) competence, (ii) job

satisfaction, (iii) performance, (iv) turnover intention, and (v) commitment.

c)There are a significant differences between the impact of T&D on

administrative and technical staff‘s (i) morale, (ii) confidence, (iii) ability, (iv) skill,

(v) knowledge. and d) senior and junior staff‘s (i) morale, (ii) confidence, (iii) ability,

(iv) skills and (v) knowledge.

59
 There are significant relationships between learning transfer factors and the

perceived influence on job performance.

(a) There is a significant relationship between the perceived skills and knowledge

(performance competence) gained from T&D and perceived employee job

performance. (b). There is a significant positive relationship between overall

employee performance and overall organizational performance as a result of the T&D

initiatives implemented in the organization.

60
CHAPTER 5

5.CONCLUSION

5.1. Results

In this study we take the fact of observation that training leads to important benefits for

individuals and organizations. The existing analysis of literature proposes that these benefits

vary from individual and organizational performance. To understand the benefits of training

and development program, we implemented different level and different disciplinary

perspective of employee development program. These features include giving attention to the

raining design, delivery, and transfer of training. After completing the study on this topic we

strongly believe that it is very beneficial for the organizations to develop the employee

development programs. If there is a systematic training and development program for the

employees the companies will harvest its profit from the market and remain competitive in

the job market. An organized and efficient development program with supportive apparatuses

will significantly assist the organizations to retain the most valued human resource, especially

those who have a lot of experience with the organization.

Companies whose investment perspective is on human resource management view training as

an opportunity to increase long-term productivity.

On the individual level, the employee must carry out self-assessment, where he/she is

expected to identify his/her opportunities and needs for improvement .Managements in

various organizations have at least recognized the importance of training to their

organizations. Past trainings seem to be biased towards the organizations goals and lesser

towards the workers factors. Most organizations offer excellent training opportunities. But

others are yet to either upgrade or initiated some important training plans. This variation on

policy has led to diverse worker engagement at work. Due to globalization, it is imperative

that most organization positions their training goals along the computer and simulations.

61
In this generation, it is imperative that employees pay detailed attention to the intrinsic and

extrinsic motivational factors of an employee when setting out a training manual or program.

The bias on the extrinsic factors was attested by the respondents claim that they

trainings enable them improve the organizations return on investment. Organizations

that do not pay attention to this fact will be faced with lesser worker commitment,

disloyalty and organizational brand dissociation. This study has proved a model that trainings

need to consider human factors of the individuals, the work environment and the

organizational environment so that the transformation function can be felt from the

human performance indicators like efficiency, activity at work, dependability,

reduction of losses to the organization, lesser absenteeism, safer work process and

lower attribution.

This study focused on the effect of employee motivation on organizational performance.

Research findings indicate that employee motivation has a significant effect on organizational

performance. Motivation is not a simple concept; rather, it pertains to various drives, desires,

needs, wishes and other forces.

Essentially, performance is a function of ability, the perception of the task required and

effort. Performance accomplishment in turn is related to rewards and satisfaction. However,

special motivational techniques include using money and other rewards considerations,

encouraging participation and improving the quality of working life of individual employee.

With that in mind, managers need to find creative ways in which to consistently keep their

employees motivated as much as possible. Motivation is very important for every company to

improve the employee performance and productivity of the organization.

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5.2. Recommendations for training

In this research we review a lot of materials related to the variables used in this research and

at the end we also proved our hypotheses. In the light of all this research and all the material

which is being used to conduct this research and all the literature review we came to the

decision that there should be training and development in every organization. Although we

have review some disadvantages like it is costly to give training to the employees, but the

advantages of training are much more than its disadvantages which are briefly discussed in

this study (Steiner-Wellner 2002).

We recommend that all organizations should provide training to their employees. We already

have discussed that training and development have advantages not only for

employee but the ultimate benefit is for the organization itself. If the performance of the

employee is not good it will affect the whole organization(Gibb-Clark 2004).

The individual employee training needs can best be mapped from and appraisal

process (McManus, et al 2004). Therefore, it is important for business ventures to

acknowledged the importance of training to the workforce performance. The training

needs should be identified from the workforce profile vis-à-vis the work trends. From

this position the organizations can provide a policy framework in order to ensure that

training is sustainable and acculturated.

 The top down management implementation should ensure that the employee ages,

past skills and work allocation are well defined ahead of a training schedule.

 The organization should ensure that the HR departments have training in their

policies and practices.

 This approach should bear in mind that the training exercise is

to remove skill implementation barriers while promoting opportunity equity among

the workforce.

63
 Trainer will also need to attend a trainer or trainer’s course in order to

be efficient and informed of their contents and facilitation process.

 It is also important to train the top management so that they can appreciate the

importance of trainings.

 Organizations need to embrace training as a mesh for diversity. This will enable the

workforce to achieve harmony. Working conditions in the organization should be

improved so that they become conducive to the transfer of learning.

 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.

 The employer should provide sufficient resources for training so as to improve the

training programmes provided.

 The employer should improve training programmes so that employees acquire new

knowledge during training.

 The employer should have compulsory training programmes for all employees in

order to improve the knowledge and understanding of annual business strategy and

objectives.

 Employees should be provided with effective training in order to reduce the time

spent by managers on supervising employees.

 Employees should be provided with more training programmes in order to reduce the

cost of recruiting and training new staff members.

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Chapter 6

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 Citation

These are links from where the work is done

 http://www.iiste.org/Journals/
 www.ijetmas.com November 2014, Volume 2 Issue 6, ISSN 2349-4476
 http://www.businessdictionary.com/definition/motivation.html#ixzz3IBlt53fD
 http://www.centerforworklife.com/cfwl-content/uploads/2013/02/Motivation-
inworkplace.pdf
 http://www.practical-management-skills.com/motivation-theories.html
 vhttp://www.trainingsolutions.com/pdf/motivating.pdf
 https://www.westminstercollege.edu/myriad/?parent=2514&detail=4475&content=47
98
 http://www.westga.edu/~bquest/2006/upgrading06.pdf
 http://eserver.org/literacy/employer-sponsored-training.txt
http://findarticles.com/p/articles/mi_m3374/is_n22_v12/ai_9290944/
 http://www.hrvs-rhsbc.ca/hrtoolkit/learning-implementing.cfm
 http://www.ilo.org/public/english/employment/skills/download/ilc_conclusion
s.pdf
 www.flexstudy.com
 www.cagena.com
 http://blogs.payscale.com/compensation/2009/09/effects-of-training-on-employee-
performance.htm
 http://www.worldbank.org/fandd/english/0396/articles/070396.htm
 http://www.pu.edu.pk/economics/pesr/PDF
 http://informingscience.org/proceedings/IS2002Proceedings/papers/acton140train.pdf
 http://informingscience.org/proceedings/IS2002Proceedings/papers/acton140train.pdf
 http://papers.ssrn.com/sol3/papers.cfm?abstract
 http://www.trainingjournal.com/feature/2010-12-01-measuring-the-effectiveness-of-
ld/, (Accessed 24/7/2011).
 http://www.ncver.edu.au/publications/542.html
Chapter 7

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 Appendix Questionnaire

Sr # Questions Strongly Dis Neutral Agree Strongly

Disagree agree D N A Agree
SD SA

1 Does training and development improve

the performance of staff?
2 Do the T&D initiatives impact on
employees‘ (a) knowledge, (b) skills, (c)
ability,
(d) morale and (e) overall performance (f)
commitment, (g) turnover intention,
(h) job satisfaction, and (i) productivity?
3 Do the T&D initiatives impact on
employees at various levels and
departments equally or differently?
4 Does training and development have an
effect on the performance of employees for
the achievement of the organizational goal?
5 Does the organization benefited with staff
training and development program?
6 Do T&D initiatives improve individual and
overall organizational performance?

7 Can a new framework for essential

practices for T&D be formulated to
enhance the efficient planning and
implementation of T&D in organizations?
8 Increment in salary motivated employees
performance?
9 Is performance based promotion policy
leads to improvement in employees
performance?
10 Compensation of employees for
achievement of target leads to
improvement in employees performance?

73