Impact of Training on Employee Performance
Human resource has become strategic resource to gain sus- tainable competitive advantages in this age of globalization. Human capital is the differentiator between a good company and a great company. Human resource is the very important and the backbone of every organization and it is also the main Resource of the organization. Human capital is the dif- ferentiator between a good company and a great company. One significant function of Human Resource Management to the effective use of human resources is training and de- velopment. Effective training and development is an invest- ment in the human resources of an organization, with both immediate and long-range returns. Training is a key element for improved performance; it can increase the level of indi- vidual and organizational competency. Training holds the key to unlock the potential growth and development opportuni- ties to achieve a competitive edge. Training programs helps in making acquaintance of employees with more advance technology and attaining robust competencies and skills in order to handle the functions and basics of newly introduced technical equipment. Training facilitates the updating of skills and lead to increase commitment, well – being, and sense of belonging, thus directly strengthening the organization’s competitiveness (Acton and Golden, 2002; Karia and Ah- mad, 2000; Karia, 1999).Training has the distinct role in the achievement of an organizational goal by incorporating the interests of organization and the workforce (Stone R J. Human Resource Management, 2002). There is no doubt that train- ing is important in all aspect for an organization. Training has traditionally been defined as the process by which individu- als change their skills, knowledge, attitudes, and/or behavior (Robbins and DeCenzo, 1998). The primary role of training is to improve the employees’ skill for current and future du- ties and responsibilities. Training helps them to change with aspects like technology and competition (Dessler 2000). Now a days training is the most important factor in the business world because training increases the efficiency and the effec- tiveness of both employees and the organization. Training is important to enhance the capabilities of employees. Recent researches reveal that training enables most organizations meet their goals and objectives. In doing so employees are able to learn new work concepts, refresh their skills, improve their work attitude and boost productivity (Cole 2002). On the one hand, most of the employees need training to per- form their job duties or at least to increase the quality and quantity of their work; on the other hand, skilled and efficient manpower is the most important success factor in achieving the goal of organizations. Training facilitates the updating of skills and leads to increase commitment, well – being, and sense of belonging, thus directly strengthening the organiza- tion’s competitiveness (Acton and Golden, 2002; Karia and
Ahmad, 2000; Karia, 1999). Training has been an important variable in increasing organizational productivity. Most of re- searches including Colombo and Stanca (2008), Sepulveda (2005) and Konings & Vanormelingen, (2009), showed that training is a fundamental and effectual instrument in success- ful accomplishment of the firm’s goals and objectives, result- ing in higher performance and productivity of the organiza- tion. Training is a tool to fill the gap and the firms should use it wisely to improve employee productivity. Armstrong (2000) contends that trained employees often work better as teams because everyone is aware of the expectations and can achieve them together smoothly. In addition, employees who receive regular training are more likely to accept change and come up with new ideas. Training plays a vital role, im- proving performance as well as increasing productivity, and eventually putting companies in the best position to face competition and stay at the top. Past researches provides the evidence regarding the positive affect of training programs on both employee and organizational performance. Training has direct relationship with the employees’ performance. A significant relationship was found between the employees training and their resultant performance in accomplishing different tasks. By the help of training employees become proficient in their jobs and they become able to give better results.
This study is intended to measure the level of performance in terms of imparting training. It also evaluates the impact of training on employee performance on their jobs. Keeping these objectives in view, we presume that training is posi- tively related to job performance of employees.
Design of the Study
The study was conducted on 108 bank employees. The per- ception of understudy respondents were gauged by asking them to show their response on 5-point Likert scale rang- ing from 1=strongly disagree to 5=strongly agree. The study model includes one independent variable viz., training and one dependent variable employee performance. Descrip- tive statistics were used to measure the level the perception across all the understudy variables. Further, correlation and regression analysis were carried to assess the relationship and relative influence of independent variables (training) on the dependent variable i.e., employee performance.
The variables examined in this study are:
Independent Variable: Training
Dependent Variable: Employee Performance
Mean Std. Deviation N
Training 3.6389 .93298 108
Performance 3.2901 .60732 108
From the descriptive analysis of the data, it shows that stand- ard deviation for both the variables is less than1. According to Cohen (2003), for the normal distribution of data standard deviation must have a range of 0 to 1. As is evident that the standard deviation of both the variables fall within the range, the data may be considered normally distributed and Pear- son correlation analysis may also be carried to assess rela- tionship between variables understudy.
Training Pearson Correlation 1
Performance Pearson Correlation .747** 1
Sig. (2-tailed) .000
N 108 108
**. Correlation is significant at the 0.01 level (2-tailed).
This table exhibits the direction and strength among the dependent and independent variables. It was found that there exists a positive high correlation between training and employee performance to the extent of 74.7% (.747**). The relationship is significant at 1% level of significance for two tailed test.
For hypothesis testing and studying the variable relationship regression analysis has also been carried on. The result of regression analysis by SPSS is reproduced in the following table:
Fig: Table-3 Regression Analysis Coefficientsa
Model B Unstandard- ized Coef-
ficients Standard- ized Coef-
1 (Constant) 1.520 .158 9.634 .000 .559
training .487 .042 .747 11.583 .000
a. Dependent Variable:
The regression table provides the result of constant, coef- ficient of determination, t-value. Coefficient is the slope of regression line and it explains that 1 unit change in inde- pendent variable will bring how much change in dependent variable. The coefficient of determination (R2) explains how much variation in the dependent variable is explained by the independent variable.
The regression results interpret the value of coefficient .747 that indicates 1% change in independent variable (training) can result in 74.7% change in dependent variable (perfor- mance). Thus, if training is increased by 1%, this will result in 74.7% increase in performance. This relationship is posi- tive and significant as shown by small p value. The value of coefficient of determination (R2) is .559 that reveals training accounts to 55.9% variation in performance and this can be viewed that there might be other factors that bring variation of 44.1% in the outcome variable. The t value for the hypoth- esis is 9.634 that training is a major predictor of performance.
The present study examined the influence of training on per- formance. It further presents that organizational performance is significantly determined by training imparted to the em- ployees or in other words training is an important anteced- ent of performance. Performance of an organization relies on the employee commitment which in turn depends on the HR policy of training and development. The study of relationship of the employees’ training with performance is important for today’s managers because the modern business trends demands more efficiency, accuracy and effectiveness in less time and cost and this can be achieved only through design, development and deployment of excellent training programs to the employees. By introducing more training programs in the organization employees become interested to get more knowledge about their jobs which eventually helps them in getting promotions among their peer groups. Since training has significant influence on employee’s work commitment and performance, it is important to reinforce and apply train- ing as part of organizational agendas in achieving organiza- tional goals.
It may conclusively be stated that training to a big extent leads to an improved employee’s performance but still it is not the sole factor that leads to good performance rather it is a combination of factors. A lot of future research can be done on different factors in banking industry, but specifically in re- lation to employees’ performance factors like training needs assessment, training programs design, development, & de- ployment are important to study for knowing their effects on the resultant employees’ performance in banking industry. The role of managerial and leadership factors in employees’ training and performance is also of unique importance and thus required to be investigated because a good manager or leader either increase or decrease the efficacy of training which in end affect employees’ performance. The employee’s compensation also has significant effect on the performance because the employees which are not paid well often show poor performance.