The Impact of Training and development on organizational

performance
Chapter 1
Introduction
Training is very important in achieving the goal of the organization as it increases the
efficiency and effectiveness of employees and ads value in the organizational
performance. The performance of employees depends on different factors but training is
most important because it enhance capabilities, skills and competencies of the employees.
The organizational performance depends on employee performance and for employees
performance training is key factor. A researcher says that training has impact on the
return on investment. So now a days most of the organizations spend a lot of money on
training and development in order to bring effectiveness and efficiency in the behavior
and personality of the employees. The effectiveness and success of an organization
therefore lies on the people who work within the organization. Therefore, employees in
the organization will be able to perform their duties and could make meaningful
contribution to the success of the organizational goals.

Problem statement
We have to measure that training and development increases effectiveness and efficiency
of employees to achieve the organizational goals.
We have to analyze the impact of training and development affects the organizational
performance.
We have to measure that organizational lay out and design increase employees
performance.

Objective
The main objective of our study is to know how the training increases the employee
performance. The training is very important because it determines the designed and
content of the trainings programmed. Contents of the training remain the same no matter
the type of training involved. It is for the increase of personal efficiency, professional
growth, and smooth organizational goals. Now a days most of the multinational
companies invest huge amount for on and off job training just to enhance and polish the
skills of their employees which increases their performance and ultimately the
performance of organization.

Significance/ Importance
The training and development increase the employee performance as a researcher said
that it is an important activity to enhance the performance of health sector organization.
The performance of employees depends on distinct factors like depends on job

satisfaction and on knowledge management so training is important for job satisfaction so

for the employees and in the same way employee performance ad value to organizational
performance. Training and development indicates the weak areas in which employees
suffers and gives methods to overcome such circumstances. After identification of weak
areas of employees, required training can be given and then it is easy to overcome to the
problems.
The managements of every organizations want performance and tasks to be done more
efficiently and also they want more from the employees so they conduct training and
development workshops for their employees to get result positively after all this
ultimately the organizational performance increases.

Chapter 2
Literature Review
Mivta (2004) stated that human resource is the very important and the back bone of the
every organization as it is the main resource of the organization. So 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 a major
multidimensional construct aimed to achieve results and has a strong link to strategic
goals of an organization. As the Mivta Explains that performance is the key element to
achieve the goals of the organization so to 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 an organization. There are many
factors which improves the work of employees such as flexible scheduling, training etc.
Michael Armstrong (2000), stated that It is very important for the organization that it
design the training very carefully and the training should be given according to the needs
of the employees as well as for the organization to get always good results. It also seems
that training design plays very important role in the employee as well for the performance
of the organization. If wrong training or irrelevant training is given then is just waste of
time and money.
Tasur and Lin (2004), state that this literature review examines the relationship between
employee training and development and organizational performance. The research helps
the general belief that employee training and development plans make positive
contributions to organizational performance. From a human resource view, research on
employee development has a great importance. Employee development means giving
more importance to the future needs than present needs.
MichaeS.Lane, Gerald.L.Blakely (1990), stated that the Management development
programs are now increasingly being studied and evaluated, regarding their efficiency
and effectiveness. It presents the results of a survey of 156 directors and the vicepresidents of personnel and human resource management departments relating to the
current status of their management development programs. The result shows that
management development programs do not seem to differentiate between the levels of
management.

(OladeleAkin, 1991), states that evaluation is increasingly being regarded as a powerful

tool to enhance the effectiveness of training. Three major approaches to training

evaluation quality description, quality assessment and quality control are highlighted. In
order to enhance the effectiveness of training, evaluation should be integrated with
organizational life through out. Evaluation will be made before and after training as after
giving training the performance should be increased. The organization invests on
employees to give training so that they expect more from employees as well. After
training the employee should be performing more for the organization to because
trainings purpose is to polish the skills of the employees and organization expects that
these polish skills will increase the performance of the organization.
(PhillipC.Wright,1992) stated that the training is given to the employees and compare its
performance reports on a study of current and past training literature which suggests
That, to be effective and to isolate both training needs and those problems having other,
non-trainable solutions, training must be preceded by a needs analysis. The problems
which untrained employees in the organization are facing should not be same which
trained people may me facing because training s main objective is to remove hurdles
from employees tasks so that they can work with devotion for the organization.
(Farhad,Analou, 1995) states that traditionally, the effectiveness of the senior officials
within the public sector has been disproportionately associated with task instead of
people-related skills. A study of 74 senior managers within Indian Railways, over three
years, has revealed that managers, in order to become effective, not only require task and
people skills but also self-development knowledge and skills. Moreover, the above broad
categories of managerial skills form a hierarchy which suggests that the more senior
positions which managers occupy, the greater the need for people and self-development.
Explores the implications of the above for senior management training and development
in public sector.

Chapter 3
Methodology
1. Hypothesis
Development of hypothesis is very important because its acceptance or rejection shows
the significance of study.
H0: There is no relation between Training and employees performance
H1: On the job training has significant effect on the performance of employees
H2: Training and development has significant effect on employees performance
H3: Delivery style has significant impact on employees performance
H4: Training layout has significant effect on the performance of employees

2. Purpose of the research

The purpose of our research is to find the effect of training and development on
organizational performance.

3. Population and sampling

Our sample size includes 150 employees from different organizations of Islamabad, the
capital of Pakistan. Population consists of both genders, i.e. males and females, working
at different levels of management.

4. Theoretical framework
Training programs offered by the organization helps employees to groom their skills so
they will be able to work according to the work requirements. So employees
performance depends on the training and development and both the variables are
positively correlated.

IV
Training and
Development

DV
Employees
Performance

5. Instrument and scale

The data is collected by a questionnaire containing 16 questions. The liker scale was used
following 5 points strongly agree, agree, neutral, disagree, strongly disagree. The entire
question were distributed in offices and conducted by hand.

6. Longitudinal or cross sectional

Our research is cross sectional because we have collected the data for one time and we
are not conducting research for more than time.

7. Validity and reliability

Our data about training and development and its effect on organization is valid as
conducted by questionnaire from related people by hand immediately so our research is
valid and reliable.

8. Limitation
On the job training has significant effect on organizational performance. Discussions and
questionnaire has proved the H1. Training and development has strong effect on
employees performance and ultimately on organizational performance at it provides
additional knowledge to employees so after survey has proved H 2. After conducting
survey by questionnaire from organizations we have come to know that training layout,
design and delivery style also have positive relation with organizational performance so
H3 and H4 proves correct as well.