Impact of Training and Development on Organisational

Performance
Introduction :-

Training and development are working as a assets for the organization . if employees are
trained and have a experience of working in a good environment then they help in the
development of organization with effectively and efficient manner .

If employees are trained and developed then it will help the organization in growth;

By reducing the wastage of timing with techniques,

By developing good communication between employees ,

By developing formal environment ,

By increasing production through training ,

By developing selling skills through training ,

By developing quick decision making strategy through training ,

By developing team strategy through training……………;

What is Training and Development ?

Training means equipping the employees with the required skill to perform a job. The
candidate are sent for training so that they can perform the job in expected manner .

Development related to the next step after Training , it focuses on the personal growth
of employee and help in successful employees development .

Development is a wider concept as compared to training because training is only the

part of development .

If an employee reaches their higher level of training and they also have a big experience
in a particular field so, they can be called as developed employee and they always work
more then necessary for organization .

Here is a Example:-

If a accountant is sent to learn the new software for accounting to prepare the books of
account more fast and accurate , this is called training. Whereas if he is sent for
orientation program to improve his motivational and conceptual skills then this is called
development.
What is need of Trainig and Development :-
>The time of learning is reduced when the employees are trained . They will take less
time in learning the new job as compared to untrained employees.

>The performance of trained employees is always better than the performance of

untrained employees as in the training programmes their quality and capability are
improved and its also improves their performance and efficiency level.

>they can develop positive attitude for the organization and their aim at moulding the
employees to motivate them to be ready for taking initiate and result in better support
and cooperation .

>It will help in solving the operational problems by creating the efficient superior –
subordinate relationship and by encouraging and motivating their subordinates.

>The organization hire untrained people and train them with the required skill according
to their organization need .

> By training organization can solve long term problem of manpower requirement.

Some basic difference between Training and Development:-

Training are basically concern with the teaching technical skill

Or

Development is basically concerned with imputing technical , human and conceptual skills
.

Training are suitable for non-managerial personnel

Or

Development is suitable for managerial personnel

Training develops skill already present in employees

Or

Development finds hidden qualities of employees

Training make use of on the job methods

Or

Development uses the off the job methods

Training makes employees perfect in performing jobs

Or

Development provide all round development of the employee

Methods of Training :-
There are mainly two types of Training :-

1.On-the-Job Training:- When the trained employees performing a task/job is known as

on-the-job training . This method is suitable only for technical jobs and the advantage of
this method is employees can learn the practical problems while working on the job .

The biggest disadvantage of this method is that it result in wastage of resources.

>Some popular Techinques of training under On-the-job Method ;

[a]Apprenticeship programme /training:- The workers seeking to enter skilled jobs are
sent for apprenticeship training programme which is the method of on the job training.

Under Apprenticeship programme, a master or a trainer is appointed who guides the

worker or learner regarding the skill of job . The master worker perform the job and
learner observes him performing . When the learner learns all the skills then slowly the
trainee becomes perfect in doing the job .

For ex:- plumbers, electricians, iron workers , etc.

[b]Internship:-It is an agreement between the professional institutes and the corporate

sector where professional institutes send their students to various companies so that they
can practice the theory knowledge acquired by them through professional institutes. Under
Interrnship the organizations get people with fresh ideas and latest knowledge and the
companies have to pay very less amount of salaries it is called stipend. The students get
chance to practice under the real work situation also.

[c]Induction or orientation training :-It is the process of receiving and welcoming an

employee when he first joins the company and by giving him about the basic
information he needs to overcome quickly and start work. The purpose of this training
program is to make the new employee fell at home and fulfilling the felling of
belongingness.
Some basic objectives of an induction and orientation programme are:-

By helping the newcomer to overcome his/her shyness and nervousness in the meeting
with the new people .

By building up the confidence of new employee.

By developing the sense of belongingness and loyalty.

By developing the cordial relationship between the newcomer and old employees and
their superiors.

By ensuring newcomers do not form negative attitude towards the organization or the
job.

By giving the newcomer necessary information such as location of washrooms, rest

intervals, canteen , cafeteria ,leave rules, etc.

Following information must be provided to the employee in a formal induction

programme:-

Brief history and operation of company.

Products and services of the company .

Companies organizational structure.

Rules, regulations, policies and the procedure of the company .

Responsibility and authority of employee.

Grievances procedures and safety rules.

Suggestion schemes.

Terms and condition of services such as wages, working hours, holiday, etc.

Disciplinary procedure.

Opportunity for training, promotion, transfer, etc.

2.Off-the-job Training:- It means that training of the employees by taking them away
from their work position which means employees are given a break from the job and
they are sent for training . Off the job method of training is more suitable for
managerial job position as conferences, seminars are held to train the managers.
Most popular techniques under Off the job training method are:-

Vestibule School ;

It is the type of school in which duplicate model of organization are drawn for better
training . When the expensive and delicate machines are involved then the employees are
avoiding the using of On the job training method . Instead of original machinery
employees are trained on dummy model by the organization by creating dummy
machinery.

For example , Sometimes the accountants who need to make entries in their inventory
register , they are first supplied the duplicate register with same columns as in original
registers and when they become perfect in making entries in a duplicate register then
they will recorded them in original register.

Inroduction of a case study :-

In this paper we will find the relationship of training and development on employee

performance and also check the impact of on-job training, delivery style and how they effect

on employee performance after providing all these factors during training and we know
In early age especially after 2nd world war the organization have come to know that
without training they cannot get success, then the organization started emphasizing on
training, First organizations in United State started giving training to their employee, In
1910s, some corporations ( General Electric, Westinghouse, International Harvester) were
having factory schools to train their employees in order to develop their technical skills as they
realized the importance of training and development. Although few researchers disagree about
the importance of training and development on the success of organization because it involves

huge cost that may affect prioritization. Training plays significant role in achieving

organizational objectives by keeping in view the interest of employees and organization

(Stone J.R. human resource 2002). To achieve the organizational goals employee

performance is important that depends on a variety of factors. But training receives high

importance as it improves the skills, capabilities, confidence and competencies. Training

includes 'soft' skills such as software training, management training. Whereas development

focuses upon the activities that enhances employee skills for future. Employee development
is a long term process that comprises, mentoring, succession planning, coaching etc.

In short to achieve the organization goals role of human capital leads to organization growth

and development and human capital is totally related with training, if your employee is

trained he/she can better perform in organizations. The main purpose of our study is to

determine the effect of training and development on organizational performance.

Organizations should focused more on training than on cost control and efficiency because

organization cannot get effectiveness without training and development.

1.1. Objectives of study:

To observe the impact of Training and Development on employee performance.

To observe the impact of job training on employee performance.

To see the impact of Delivery style on employee performance.

1.2. Research Questions:

Is there positive relationship exists between Training and Development on employee

performance?

Is there positive relationship exists between on-job training and employee

performance?

Is there positive relationship exists between Delivery style and employee

performance?

2. Literature Review:
Employees are the most valuable resource of every organization, because a skilful work
without Human capital is not possible getting these things in mind every organization is
investing a Big amount of capital in training and development. According to Khan et al
(2011), on job training, training has positively related with organizational performance are
measured by empirical data. According to iftikhar ehmad and siraj-ud-din (2009) in health

Industry training and development has role like a backbone, it improves the performance
of employee. Thomas j. Watson (founder of IBM) said about the human resource, “you can
get capital and erect buildings, but it takes people to build a business a business”.
Organizational goals without human resource cannot be achieved; most of the jobs have
such type of orientation which cannot be performed without human capital.

According to Flynn et al., (1995) on the job training reduces cost and saves time. You can

give training in your organization for assigning the duties of senior employee, juniors are

attached with senior one for some time they learn and trained there. Important part of

Training and Development is Delivery style (Carlos A. Primo Braga, 1995). According to

Ohabunawa (1999) those organizations who train their employee well, managers and superior

have the confidence to get the authority and to deal with their subordinates. Abiodun (1999)

said that, through training employees can get knowledge, skills, and attitudes which are the

requirement of employees to perform their task adequately. Stephen & Bowley‟s (2007)

study shows the link between employee productivity and training which further leads to

employee performance. Baldwin & Johnson (1995) claim that lower levels of training will

increase the chances of employee migration from one organization to another. However,

employee’s satisfaction and loyalty increases by higher degree of training towards the firm

and decreases the chances of employee termination. (Choo & Bowley, 2007).

According to Chandrasekar K (2011) workplace have two types of impact on employee’s

moral, productivity and engagement positive and negative, if you give a good work

environment the effect will be positive. According to Ceylan D, et al (2010) innovation of

product and process and also in organization and employees creativity is directly related with

the environment. According to Keeling and Kallaus (1996) ergonomics is the study of

physiological factors such as colour, sound light, and temperature are directly related with the

space, furniture, and equipment, in order to meet better psychological criteria among workers

or trainers. Without any pre-training employee cannot perform easily (Thomas N. Garavan,

1997). As compared to untrained employees trained employees perform well. (Partlow, 1996;

Tihanyi etal., 2000; Boudreau et al., 2001). Organizational goals can be achieved effectively
if employees of those organizations are provided sufficient training and development (Flynn

et al., 1995; Kaynak, 2003; Heras, 2006). Furthermore through training and development the

performance of employees increases (Shepard, Jon et al., 2003). Training and development

programs are expensive but it payback more than it costs to organizations (Flynn et al., 1995;

Kaynak, 2003; Heras, 2006). Each corporation should focus on training and development in

order to better compete in present era of competition. Training and development has

significant role for the development of employee’s performance. According to Partlow,

(1996); Tihanyi et al., (2000) and Boudreau et al., (2001) training should be designed

according to the need of employee and organizations which perform these things get better

results. The design of training should be according to the needs of the employees (Ginsberg,

1997).

2.1. Hypothesis:

On the basis of the literature review and model specification authors develop these

hypothesis.

A1: There is significant positive relationship between Training and Development and

employee performance.

A2: There is significant positive relationship between on the job training and employee

performance.

A3: There is significant positive relationship between Delivery style and employee

performance.

3. Methodology:
A self administrative questionnaire was prepared for this particular study on five point Likert

scale. Questionnaire was prepared in English language and it was distributed among different

experts to maintain content validity. A total of 100 questionnaires were distributed among
respondents of 11 banks of two districts Multan and Bahawalpur of Punjab province Pakistan.

For data analysis purpose SPSS 20 version was used.

4. Analysis:
A1: Results of regression analysis are given in below table, as it is clear from table that for

hypothesis 1, the value of beta is =0.970 that is positive and shows positive change in

dependent variable due to independent variable training and development. The value of t is

5.9408 that is significant and similarly P value is less than 0.05 so these results are providing

sufficient grounds to accept hypothesis 1. So null hypothesis is rejected and alternate A1 is

accepted.

A2: Results of regression analysis are given in below table, as it is clear from table that for

hypothesis 2, the value of beta is = 1.003 that is positive and shows positive change in

dependent variable due to independent variable on-job training. The value of T is 38.176

that is significant and above the average value 2, similarly P value is less than 0.05 so these

results are providing sufficient grounds to accept hypothesis. So null hypothesis 2 is rejected

and alternate A2 is accepted.

A3: Results of regression analysis are given in below table, as it is clear from table that for

hypothesis 3, the value of beta is = .984 that is positive and shows positive change in

dependent variable due to independent variable delivery style. The value of T is 24.245 that

is significant and above the average value 2, similarly P value is less than 0.05 so these

results are providing sufficient grounds to accept hypothesis. So null hypothesis 3 is rejected

and alternate A3 is accepted.

5. Discussion and Conclusion:

The learning can be accomplished in terms of the trainings of employees. Training and

development has positive effect on employee performance. First of all our purpose of this
study to investigate in measuring training needs of the employees at Government sectors,

because in Pakistan all the Government sectors are facing terrible downfall and we find

through this research that even there is no concept of training and development although onjob
training is provided at some extent but not in a proper way and when we observe in

Hypothesis

Variables Standardized Regression

Weights

T-Value P-Value Significant/

In-significant

A1 Employee training .970 5.9408 .0000** Significant

A2 On job training 1.003 38.176 .0000** Significant

A3 Delivery style .984 24.245 .0000** Significant

private sector a huge investment is spend on training it shows the importance of training and

the progress of these organization.

Secondly after evaluation of employee’s orientation on delivery style and on-job training we

Conclude that most of the respondent (%) answered that training and development is the

necessary part of the organization, even from the analysis of employees of different

organization likes to get training in their free time.

Summary:-