Training and organizational performance

CHAPTER ONE:

INTRODUCTION

1.1 Background of study.

Human Resource Management is an integral function of an organization which

needs focus on many factor including compensation, retention, performance appraisal,
training and development and quality of work life, but by far compensation has strong
relation with Employee performance and motivation.

The history of training in business organizations is as long as the entire history of

business organizations (Miller, 1996:3). This is because the knowledge base or skills of
the normal employees in the labour market is not sufficient for the specialized tasks
within the organizations. However, the academic study of various forms of training did
not start until about a century ago, when researchers started a branch of research
under the name of “vocational training” (Salas and Cannon Bowers, 2001). The
beginning of the twentieth century and especially after World War II saw the
widespread of training programs among organizations, involving more and more
employees and also expanding in content (Luo, 2000).
In order to succeed. Organizations have to obtain and utilize human resources
effectively. 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 the management of human resources in general and
SBI in particular is rather challenging as most organizations have difficulties finding
proper human resources)
1.2 Statement of the problems

The perception of employees on training has a greater impaction the success of

any organization. If the employees are satisfied with the training policies of the
organization, this will have a positive impact on the organization’s productivity. The
perception or attitude of employees is transformed into positive or negative behaviour.
How do the employees see employee training policies of the organization? How
seriously does the Management take the Training Policy of its organization? Some see
training and development as a waste of time and resources that would have been
employed in the production of goods and services that will yield profit to the
organization. Sometimes, the fear that an employee could leave the organization after
training affects the employees training and sometimes makes it unplanned and
unsystematic.
The procedure and process usually adopted by some Human Resource Departments in
the identification of those employees that require training are worrisome. Employees
sometimes go for training for personal reasons which include enriching themselves;
preparing themselves for other positions in other organizations; poor play/politics;
because he/she knows the person in-charge of training and not necessarily because
there is an identified skill gap which needs to be filled through training. Often times, the
HR Department does not conduct training needs assessment. Employees’ training
selection criteria ought to be systematic and free from bias. It must follow a lay down
procedure to ensure that the right candidates are sent for training for positive effect on
organizational performance. It is found that previous researchers have concentrated on
the importance and benefits of training and no study has been carried out on the
challenges faced by the HR departments of SBI in the selection of employees for
training. In order to fill this gap, the researcher is compelled to conduct a study on the
effect of employee training on organizational performance with focus on processes and
procedures of identifying skill gaps, training design and delivery style and employee
perception towards training in SBI
1.3 Research objectives:

1.3.1. General objectives:

The overall objective of this study will to find out the influence of training on
organizational performance at SBI Company.
1.3.2. Specific objectives:
1. To ascertain the extent to which selection procedure of employee for training
affects organizational productivity;
2. To determine the extent of effect of training design on employee productivity;
3. To ascertain the extent to which training delivery style affects employee
productivity;
4. To find out the relationship between employee perceptions of training and
organizational productivity; and
5. To determine the extent to which employee training affects organizational
performance

1.3 Research Questions.

1. What is extent to which selection procedure of employee for training affects

organizational productivity?
2. What is the level of effect of training design on employee productivity?
3. What is the extent to which training delivery style affects employee productivity?
4. Is there is a relationship between employee perceptions of training and
organizational productivity?
5. What is the extent to which employee training affects organizational
performance?

1.5. Scopes

Geographic scope.

This study will be conducted in the case of SBI .

Time Scope.

This study will going on from May, 23th to 23 August, even continues for other times as
widely.

1.5.3. Content Scope.

This study will content and to other variables which may cause this problem and as
widely break down section two the literature reviews.

1.5.4. Theoretical scope

Human capital theory and the technology-based theory proposed by Luo (2000) will
be proved or disproved under this study.

1.6. Significance of Study.

The significance of the study is important and focused who beneficiary and how.
According to this study the following beneficiaries are.

Organizational will utilize if need to solve this problem, because of evidence solution
and support document time decision making.

Researchers will be in support of future study time that will be doing and search gaps
and also other variables remain if they will make study, this study is references
particularly secondary data including related study theoretical study, and concepts and
ideas.

Students will be utilizing this study for references, the time of prepared their thesis
paper.

Academies also academies will be benefits this study as side of academic areas and
add for future evidence like academic record, even universities use if will be need fulfil
studies.
Researcher self: the researcher utilizes this study the knowledge, experience, skills,
and know and valid the impact of this variable.

1.7. Operational Definitions of Key Terms.

Human resource management is a part of management which dealing with

personnel, how people managed in an organization

Training: is a process of increases capacity of knowledge skills and experience to as

well performance of employee.

Organizational performance comprises the actual outcome or results of an

organization as considered against its intended outputs or goals and objectives

1.8. Research Methodology

This study will implement non experimental design specifically descriptive

survey research design. Ogutu (2012) posits that a survey research method is
probably the best method available to social scientists who are interested in collecting
original data for purposes of describing population which is too large to observe
directly,to determine the relationship between the dependent variable (employee
performance) and the independent variable (Compensation.

According to Mugenda & Mugenda (2003), descriptive survey design helps a

researcher to gather, summarize, present and interpret information for the
purpose of clarification. Statistical instrument to be used for the research analysis will
mainly be inferential statistics, specifically correlation matrix and multiple regression
analysis. . Saunders et al. (2009), recommend this strategy because the method allows
researchers to collect quantitative data which can be analyzed quantitatively using
inferential statistics. The method is also perceived as authoritative by people in general
and is both comparatively easy to explain and to understand.

The researcher will favour quantitative and qualitative approach will favor only meant to
supplement the qualitative method to make sure the validity and reliability of the study.
Qualitative research, on the other hand, might acknowledgement that participants are
influenced by taking part in the research process. They might also acknowledgment
that researchers bring their own preferences and experience to the project. Qualitative
and quantitative data analysis is a very personal process.

Research Population

The research population are 80 and target population of the study are 60 of
employees selected in SBI , which were classified into: 15 human resource offices, 5
finance offices, 20 procurement office and 20 sales units. This data are area selected,
because of most functional department in ministry. Sample Size

Since the nature of the target populations are different and include both managers and
employees, the total a sample size are 52, to determine the ideal sample size for a
population, Slovene’s formula used in this study, which is:

N
n=
1+ N (α )2
Where

n=sample ¿ N =target population ;∧α =0.05 level of significance

60
n= 2
1+60 (0.05)

60
n=
1+60 (0.0025)

60
n=
1.15
n=52

No Categories Target Sample

 population size

1 Human Resource unit 15 52

2 Finance unit 5 52

3 Procurement unit 20 52

4 Sales unit 20 52

Total 60 52

Trace table.
Source: primary data (2017) through SBI Company.

Table 3.1: Strata Sampling.

Sampling Procedure:-

According to Sarantokos, (1998) simple random sampling employed to ensure that all
employees stand equal chance of being selected to avoid sample bias and ensure that
the results are reliable enough to be generalized.

Sources of data and Collection Methods:

To achieve the objectives of this study, combination of both primary and secondary
source will be used in the study; the primary data will be collect using questionnaires
which will consist of closed and open ended questions. Whereas, the secondary data will
be collected from different written documents such as reports, files, memos, annual and
quarterly reports other published and (Neches (2005).

Research Instrument methods.

In this study research instruments will be questionnaire and a few observations

including the following:
 1. The first section of the questionnaire will face sheet and used to collect
demographic data of the respondents and analysis frequency and percentage
2. The second section the focuses on the job training
3. The third section of the questionnaire Focuses on off the job training.
4. The fourth section deals with the influence of on job training and off the job
training) on organizational performance.

Validity and reliability of instrument

Patton (2002), states that validity and reliability are two factors which any researcher
should be concerned about while designing a study, analysing results and judging the
quality of the study.

Validity

Healy & Perry (2000), explain that validity determines whether the research truly
measures that which it was intended to measure or how truthful the research
results are. It estimates how accurately the data obtained in the study
represents a given variable or construct in the study (Mugenda, 2008). The
questionnaire gave to other experts in research to seek their opinion about the
adequacy and representativeness of the instrument to ensure it covers all the variables
being measured as a way of eliminating content validity.

Reliability

Healy & Perry (2000), assert that reliability is the extent to which results are consistent
over time and an accurate representation of the total population under study. This
research is Validity and Reliability because the researcher used existing- questionnaire

Data Gathering Procedures

Data collected by the researcher, and will get an introduction letter from New
Generation University College to enable for identification by the employees of SBI when
approaching respondents to provide relevant information for achieving the research
objectives. Questionnaire distributed to eligible staff through the heads of the various
departments. A cover letter attached to the questionnaires to introduce the
respondents to the research topic to avoid any suspicion or mistrust respondents
might have about the study. The cover letter is also expected to help motivate
respondents to participate in the study and answer the questions and to assure them of
anonymity and confidentiality, and to show them how to fill the questionnaires. The
questionnaires distributed among the employees through their departments. The
period for data collection span over a period of three days. The advantage of
selecting this method is that, it will ensure confidentiality and keep track on those who
may not return the questionnaire on time.

Data analysis.

The researcher will be analysis this study through SPSS software the first, frequency
and percentage distribution were used to determine the demographic characteristics of
the respondents. Second the mean and standard deviations were applied for the levels
of training and organizational performance. Pearson’s correlation will used to determine
the relationship between training on organizational performance.

Ethical Considerations.

According to Saunders et al. (2009), ethics is the norms or standards of

behaviour that guide moral choices about our behaviour and our relationships with
others. Participants and respondents gave full information on the purpose and
objectives of the study in order for them to make informed decisions as to whether to
share or not. Moreover, all information in relation to the identity and personality of
respondents threaded with highest privacy.

Limitations of the Study.

 Every research project has some limitations that can affect the overall research
activities, throughout research project there were flowing limitations:

1. a fewer amounts of data and information some area not all

2. Difficulty in generating reasonable, adequate and reliable information from different

areas.

3. Shortage of time means very concise and precise

4. Busy schedules of during secondary data collection