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THE IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEES'

PERFORMANCE: REFERENCE TO COMPANIES IN TAMILNADU

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THE IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEES’

PERFORMANCE: REFERENCE TO COMPANIES IN TAMILNADU
Dr. J Arulmani
Assistant Professor in PG & Research Department of Commerce, Srimad Andavan Arts and Science College, Trichy.

Dr. G Muthukumar
Assistant Professor in PG & Research Department of Commerce, Srimad Andavan Arts and Science College.

Mr. T Karthikeyan
Assistant Professor in Department of Management, Srimad Andavan Arts and Science College, Trichy.

Abstract:
Employee development and training programmes are critical to the success of businesses all over the world. These programmes
not only allow employees to improve their skills, but they also allow employers to increase employee productivity and improve
company culture. Employees who acquire the proper training are better equipped to do their jobs. Employee gains a better
understanding of basic task safety and procedures. Because employee has a better understanding of the industry and the duties
of his position, the training may help boost the employee's confidence. This self-assurance may motivate her to improve her
performance and come up with fresh ideas to help her succeed. This study attempts to understand the opinion and attitudes of
the various categories of employees in tamilnadu about the relevance of Training and development programs conducted by
their Companies. Convenient sampling technique was adopted for selecting sample units from the employees. A sample of
120 employees helped to analyze their satisfaction level and provide valuable suggestions. Simple percentage analysis and
hypothesis testing (chi square test and correlation & coefficient test), multiple regression, and Factor Analysis are some of the
statistical tools used to analyse and understand employee opinions. Different charts and diagrams were used to present the
findings. This research provides a way for employees to provide feedback on the effectiveness of training in this industry. As
a result, for effective management, relevant and appropriate policies and procedures can be designed and executed.
Keywords: Training design, training component, training benefits.

Introduction:
Training is simply a method of supporting a person in increasing his or her efficiency and effectiveness in a specific work area
by providing additional information and practises. Training is also necessary for an employee to develop specialised skills,
abilities, and information. Training and development, as well as organisational growth, are critical for any organisation,
because organisational growth and profit are both dependent on training. However, training is not a critical component of
organisational development. It is a result of the organization's growth.
Training is not the same as education, especially formal schooling. The primary goal of education is to improve knowledge,
while the goals of training are to improve knowledge while also changing attitudes and competencies in a positive way. All
different types of skilled one group of employees can get into similar capability, similar skilled group after a suitable training
programme. That is one of the benefits of the trainings. Every company has its own distinct culture. People are an organization's
most valuable asset. They have the power to make or shatter an institution's fortunes. As a result, a well-designed training
programme will help trainees develop their creative powers while also orienting them to the practical aspects of today's
technology advancement. As a result, it is critical for any company to train as many of its employees as possible.
The framework for assisting employees in developing their personal and organizational skills, knowledge, and talents is known
as training and development. The purpose of all parts of human resource development is to create the best workforce possible
so that the business and individual employees may achieve their job goals while providing excellent customer service.
Organizational health depends on the growth of knowledge and skills. We now live in an information age, where businesses
are valued not only for their physical assets but also for their intellectual capital. Because training is one of the most important
ways to preserve and improve intellectual capital, the quality of an organization's training has an impact on its worth. Those
who are untrained or badly trained cost substantially more to sustain than employees who are well-trained.

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Employee retention is influenced by training, which is a precious commodity that can yield great returns if considered as an
investment rather than an expense. Training is an organizational effort focused at assisting employees in acquiring the
fundamental skills needed to perform the responsibilities for which they were hired efficiently. Development, on the other
hand, refers to actions that expose people to new responsibilities and higher-ranking positions within the firm.
The act of developing an employee's knowledge and skill for a certain job is known as training. Employees obtain technical
information and skills for a specific goal through training, which is a short-term educational process utilising a systematic and
planned technique.

Review of literature
Training and development, according to Elnaga and Imran (2013), aids individuals in reducing their anxiety or frustration in
the job. When a task is not completed correctly and the end results are not as expected, the individual may lose motivation to
continue working. Training and development is a Human Resources function that aims to close the gap between present and
expected performance. The goal of training is to improve the abilities needed to achieve organizational objectives. Employee
training and development takes place at various levels of the business and assists individuals in achieving a variety of
objectives.[6]
(Bapna, Langer, Mehra, Gopal, & Gupta, 2013) found that Employee training and development is an important part of Human
Resources planning since it not only maximises individual returns, but it also has the potential to recruit better people to the
company. It aids the company in increasing the quantity and quality of its workforce. It's important to remember that people
get more productive with time.[3]
Nassazi (2013) The frequency is usually defined by the resource capability and the objectives to be assessed, according to the
author. These goals might be classified as developmental or administrative in nature. Feedback, recognising strengths and
weaknesses, setting goals, classifying training needs, increasing communication, and allowing opportunity for employees to
voice their issues are all part of the developmental objectives. Documenting choices, identifying high-potential personnel,
selecting new assignments and transfers, detecting bad performance, deciding on layoffs, evaluating employee selection
criteria, and meeting legal norms and regulations are the main administrative goals.[9]
(Nishtha and Amit (2010) emphasize in their study that Knowledge is transforming into fundamental capital, causing
development to occur. Organizational success, on the other hand, is contingent on its informed, skilled, and experienced
employees. As a result, in order to be sustainable, businesses must value constant personnel training and development. Training
and development are critical at all levels of the organization since skills deteriorate and become obsolete over time and must
be refreshed.[11]
Abdul Hameed (2011) The term "development" refers to activities that lead to the acquisition of new knowledge or abilities in
order to advance. Employee development programmes are provided by companies to help employees improve their skills. In
today's corporate environment, employee development is becoming a more vital and strategic need in firms.[1]
Rohan & Madhumita (2012) Additionally investigated that, investing in staff training in decision-making, teamwork, problem-
solving, and interpersonal interactions has a positive impact on the organization's growth as well as employee performance.[12]
(Sheeba, 2011) Most successful firms consider the advancement of their personnel and invest in their training, thus
development programmes are well worth investing in. As a result, skill and competency improve, which boosts morale and
production.[13]
(Mozael, 2015) Because they lead to high performance in the same field and are an important part of the human resource
department, training and development has become one of the most important functions in most organisations. It has a
significant impact on the success of an organisation by improving employee performance.[8]
Armstrong M. (2009) has distinguished training from development by stating that development is defined as the acquisition of
new knowledge and skills that enable employees to advance into future job requirements, whereas training is defined as the
acquisition of competencies that enable employees to perform better in their current jobs.[2]
Chris (2011) Employee training is necessary for an organisation to improve employee performance, and the training
programme should be evaluated in accordance with the organization's objectives and missions.
(Maycunich 2000) From the employee's perspective, the main goals of learning are to develop job-related skills and knowledge,
as well as to improve their careers. Training and development facilitates career changes while also addressing the personal and
professional growth of employees. Learning can be defined as knowledge gained by self-directed study, experience, or a

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combination of the two; the art of learning and retaining knowledge, skills, competences, attitudes, and ideas; or a change in
behaviour resulting from experience.[7]
(Colarelli and Montei 1996; Becker 1993) Scholars and professionals are debating whether training and development
programmes have a positive impact on employee and organisational goals. Some researchers say that high staff turnover leads
to more training opportunities, while others claim that training is an effective tool for employee retention.[5]
(Simonsen and O'Herron, 1995) Various companies throughout the world offer training and development programmes to its
employees in order to improve their skills and talents. Sears Credit began a major restructuring in the early 1990s and responded
with career-development initiatives. This programme was created for employees in order to align their talents with changing
roles while also ensuring that the programme added value to the organization's growth. Companies also believe that they were
not allocating career possibilities to their employees who had the necessary contacts and skills to take advantage of them.[10]

Research methodology
Statement of the problem
Employees and their abilities determine whether a company succeeds or fails. The talents of any employee are determined by
the company's training and development programmes. It is vital to note that employee skill boosts the organization's efficiency,
productivity, and effectiveness. This background study was chosen to learn about the training and development programmes
used by various firms to increase employee skills in order to achieve the organization's goals. As a result, research is carried
out.

Scope of the study

➢ This study helps the company to know about their current Training method of organization
➢ This study helps to know the human resource department of the organization
➢ This study will be help for the organization to know the quality of training programme

Objectives of the study

To study the effectiveness of training and development programme.
To analyze how the training helps the organization development.
To study the impact of training and development on overall productivity of the organization
To analyze the training method used to the employee and how they are evaluated.

Data analysis and interpretation

Demographic Characteristics of Respondents Table 1
Frequency Percentage
20-30 60 50.0
31-40 30 25.0
41-50 15 12.5
Age 50& Above 15 12.5
HSC/Diploma 30 25.0
UG 60 50.0
Qualification PG 30 25.0
Male 80 66.6
Gender Female 40 33.33
Below 5 75 62.5
No of training
6-10 30 25.0
attended
More than 10 15 12.5
Below 5 years 48 40
Experience
5-10 Years 36 30

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10-15 years 24 20
15 Years & Above 12 10

Total 120 100

Table 1 reveals the demographic characteristics of the respondents

Table 2 : Demographic variables influence on the Dependent variable.

Variable Test Value Result
Age and Overall Satisfaction Correlation r = .812 Significant and Positive relationship
on T&D (p <0.05) exists between the two.
No of Training attended and Correlation r = .764 Highly Correlated
Overall Satisfaction on T&D (p <0.05)

Experience in the company Correlation r = .917 Significant and Positive relationship

and Overall Satisfaction on (p <0.05) exists between the two.
T&D
Gender and Overall t-test t = 3.527 No Significant mean Difference.
Satisfaction on T&D (p<0.05)
Educational qualification and F-test F = 1.452 No Significant difference exists.
Overall Satisfaction on T&D (p>0.05)

Factor Analysis
Factor analysis is a method of data reduction. It does this by seeking underlying unobservable (latent) variables that are
reflected in the observed variables (manifest variables). There are many different methods that can be used to conduct a factor
analysis (such as principal axis factor, maximum likelihood, generalized least squares, unweighted least squares.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling .762
Adequacy.
Bartlett's Test of Approx. Chi-Square 436.926
Sphericity df 120
Sig. .000

Component Matrix
Component
1 2 3 4
Well Planned TD .835
Enough Time .512
Relevant Skills .526
Doubt Cleared TD .806
Engagement with TD .714
Intended Knowledge TD .605
Improve Productivity TD .534
Competent Trainers TD .598
Goals Relevant TD .462
Pedagogy Adopted
Potential Enhancement TD .606
Attitude Change TD .471

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Promotion helpful TD .335

Competency Developed TD .451
Overall Satisfaction Level .584

The table above is output because we used the univariate option on the /print subcommand. Please note that the only way to
see how many cases were actually used in the factor analysis is to include the univariate option on the /print subcommand.

Inference:
Factor 1: Well-planned training.
Doubt Clarification TD
Intended Knowledge acquisition TD
Competency Development
Factor 2: Enough Time
Engagement TD
Goals Relevant TD
Attitude Change TD
Factor 3: Improve Productivity.
Potential Development
Promotion
Overall Satisfaction
Factor 4: Relevant Skills
Competency Development.

Multiple regression
Multiple Regression analysis is the simplest form of regression analysis involves finding the best straight line
relationship to explain how the variation in an outcome (or dependent) variable, Y, depends on the variation in a predictor (or
independent or explanatory) variable, X. once the relationship has been estimated we will be able to use the equation
Y=b0+b1X in order to predict the value of the outcome variable for different values of the explanatory variable.

Table Model Summary

Std. Error of the
Model R R Square Adjusted R Square Estimate
1 0.782 .586 0.572 .802
Inference
This table displays R, R squared, adjusted R squared, and the standard error.

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R, the multiple correlation coefficients, represents the correlation between the observed and anticipated values of the dependent
variable. Models with R values ranging from 0 to 1 are created using the regression technique. Higher R values suggest stronger
associations. The R value of.782 indicates that the variables of employee perceptions of the success of training and
development programmes have a strong 78.2 percent correlation.
The proportion of variation in the dependent variable explained by the regression model is known as R squared. R squared has
a range of values from 0 to 1. The model does not match the data well if the values are small. The sample R squared tends to
overestimate the model's ability to fit the population. The R Squared Value is.586 in this case, indicating that the model is
appropriate for the population. It accounts for 54.7 percent of the variance in employee opinions.
Adjusted R squared is an attempt to correct R squared to better reflect the model's goodness of fit in the population. R Squared
can assist you in determining which model is the finest. Choose a model with a high R squared value and a small number of
variables. Models with a large number of variables are frequently overfit and difficult to comprehend. The Adjusted R Square
Value is.572, indicating that the model fits the population well.

TABLE 4.6.2: ANOVA:

ANOVAa
Model Sum of df Mean Square F Sig.
Squares
1 Regression 84.626 16 5.289 3.872 .000b
Residual 113.374 83 1.366
Total 198.000 99
Inference
The results of an analysis of variance are summarised in this table. For two sources of variance, regression and residual, the
sum of squares, degrees of freedom, and mean square are displayed. The Regression output shows information about the
variation that the model accounts for.
The Residual output shows information about the variation that your model does not account for. The information for
Regression and Residual is combined in the Total output.
When the regression sum of squares is greater than the residual sum of squares, the model accounts for the majority of the
variation in the dependent variable. A large regression sum of squares of 84.626 compared to the residual sum of squares of
113.374 suggests that the model accounts for the majority of the variation in the dependent variable. High residual sums of
squares suggest that the model fails to explain a large percentage of the variation in the dependent variable, and you should
look for new components that can help account for a larger portion of the variation.
The sum of squares divided by the degrees of freedom yields the mean square. The mean square value is 15.199 in this case.
The F statistic is calculated by dividing the regression mean square (MSR) by the residual mean square (RMS) (MSE). For the
F statistic, the numerator df is the regression degrees of freedom, and the denominator df is the residual degrees of freedom.
The number of cases minus one equals the total number of degrees of freedom. The F statistic is 25.762 in this case.
If the F statistic's significance value is minimal (say, less than 0.05), the independent variables are doing a decent job of
explaining the variance in the dependent variable. If F has a significance value greater than, say, 0.05, the independent variables
do not explain anything.

Table Co-Efficient
Unstandardized Standardized
Coefficients Coefficients
Model T Sig.
Std.
B Beta
Error
Enough Time to attend TD .035 .109 .033 .319 .750
Doubts are Cleared TD .055 .130 .055 .428 .670
Intended Knowledge TD -.027 .126 -.022 -.213 .831
Improve Productivity TD -.032 .113 -.027 -.285 .776

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Competent Trainers TD -.028 .114 -.023 -.247 .805

Goals Relevant TD -.041 .118 -.035 -.347 .729
Potential Enhancement TD -.081 .111 -.068 -.734 .664
Competency development TD .020 .098 .020 .204 .839
Outcome Training .064 .120 .046 .533 .595
a Dependent Variable: Overall satisfaction of Training programme

Inference
From the above co-efficient table, it has been concluded that the variables namely. Well planned, helps in promotion, improves,
Potential development, career growth and personal improvement, are the dominant variables.

Suggestions
As a result of competitive market pressure, businesses are discovering the value of staff training and development programmes.
At various levels of exploration, more research is needed into the aspects that can improve awareness of the benefits of training
and development. Primary studies on the effects of training and development on employee and organizational novelty and
performance adaptability may aid this research. Providing employees with opportunities for training and development might
be interpreted as a sign that the company cares about them. Employee training and development must be created and executed
to satisfy the needs of all employees so that they are not just productive but also satisfied. Employees benefit from training and
development because it helps them perform their jobs more efficiently by improving their interpersonal and technical talents,
teamwork, job confidence, and drive. Organizational training is the key to unlocking the potential for growth and development
in order to get a competitive advantage. Organizations invest much on training and development of their workforce in order to
boost productivity. As a result, knowledge, skill, and skills are predictors of employee performance, and firms must continue
to properly invest in them in order to boost employee productivity. Organizations invest a significant amount of money and
time on training to assist employees in acquiring job-related skills. As a result, it's critical to offer all of the training results.

Conclusion
Employees are the company's most significant asset because they are responsible for improving customer satisfaction and
product and service quality. Without appropriate training and growth opportunities, they may not be able to complete their
responsibilities to their full potential. In this study, we use the premise that training has significant benefits for both individuals
and organisations as a starting point. According to extant research, these benefits differ depending on individual and
organisational performance. We adopted several levels and disciplinary perspectives of staff development programmes to
better grasp the benefits of training and development. We also discussed how to improve the benefits of training in our research.
These characteristics include paying close attention to training design, delivery, and transfer. After conducting research on the
subject, we are convinced that developing employee development programmes is extremely useful to businesses. Companies
will reap market profit and remain competitive in the job market if they have a comprehensive training and development
programme for their personnel. A planned and efficient development programme with supportive apparatuses would greatly
assist firms in retaining their most valuable human resources, particularly those with extensive experience with the company.
Employees and organisations will gain in the long run if organizations are capable of supporting all employees in satisfying
their needs. It is also critical for businesses to review the efficacy of their staff training and development programmes on a
regular basis.

Reference
1.Abdul Hameed Aamer Waheed (2011): “Employee Development and Its Effect on Employee Performance A Conceptual
Framework”. International Journal of Business and Social Science Vol. 2 No. 13 [Special Issue - July 2011] 224.
2.Armstrong, M. (2009). Armstrong's handbook of human resource management practice (11th ed.). London (UK) and
Philadelphia (USA): Kogan Page Limited
3.Bapna, R., Langer, N., Mehra, A., Gopal, R., & Gupta, A. (2013). Human capital investments and employee performance:
An analysis of IT services industry. Management Science, 59(3). 641-658.
4.Chris, O. (2011). Employee training and development in nigerian organizations: Some observations and agenda for research.

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Australian Journal of Business and Management Research, 1(9): 82-91.

5.Colarelli, S. M., and Montei, M. S. 1996. Some contextual influences on training utilization. The Journal of Applied
Behavioral Science, 32(3): 306-322
6.Elnaga, A., & Imran, A. (2013). The Effect of Training on Employee Performance. European Journal of Business and
Management, 5(4), 137-147
7.Gilley, J. W. and Maycunich, A. (2000). Beyond the Learning Organization: Creating a Culture of Continuous Growth and
Development through State-Of-The-Art Human Resource Practices. Cambridge, MA: Perseus Books.
8.Mozael, B. M. (2015). Impact of training and development programs on employee performance. International Journal of
Scientific and Research Publications, 5(11): 38-42.
9.Nassazi, N. (2013). Effects of training on employee performance: Evidence from Uganda (Unpublished doctoral
dissertation). University of Applied Sciences, Vassa, Finland.
10.O’Herron, P., and Simonsen, P. (1995, May). Career development gets a charge at Sears Credit. Personnel Journal, 74 (5),
103-106.
11.Nishtha Langer and Amit Mehra (2010), “How Training Jump-Starts Employee Performance”, Indian Management, Vol
49 (6), pp: 14-18.
12.Rohan, S. & Madhumita, M. (2012): “Impact of Training Practices on Employee Productivity: A Comparative Study”.
Interscience Management Review (IMR) ISSN: 2231-1513 Volume-2, Issue-2, 2012.
13.Sheeba Hamid (2011): “A Study of Effectiveness of Training and Development Programmes of UPSTDC, India – An
analysis”, South Asian Journal of Tourism and Heritage, Vol.4 (1).

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