Impact of Training on Employee Performance

Introduction

Organizations that need to stand firm in this competitive market have come up with training programs as a strategy of ensuring that their employees are well equipped with every bit of information that they need to perform well in their workplace. The strategy has proved to be effective, with the performance of workers from poorly trained organizations being lower relative to that of employees from organizations that have embraced training. With this highlight in mind, one would wonder why successful organizations have considered training a crucial tactic as far as their performances are concerned. Does training have any impact on employee performance? Does it boost confidence and team spirit in an organization? These questions will come in handy in this research.

Training is an integral part of the performance in any organization, with companies all over the world investing in the training of their employees to attain improved performance in their respective industries. With the realization that training is an important part of employee performance, companies have increased investment in training to give themselves a competitive advantage. According to Elnaga and Imran, equipping employees with the right skills and appropriate knowledge has advantages of increasing competitiveness1. For companies to equip their human resources with this proficiency and acquaintance, they have to adapt to teaching courses that are not only valuable but also persuasive besides acting as a source of dedication for the workers.

Companies employ individuals with the required experience and education to perform the job at hand. In addition to this strategy, they proceed to invest in continued training at the workplace. Organizations carry out continuous training programs to ensure that employees are aware of the means of tackling any problems that are related to their line of work. The training also ends up being a tool for motivation in the organization. As firms carry out the process of training, it is hoped that such employees will notice the importance of their contribution to the organization, with this move enabling them to work towards achieving the set organizational goals.

For a long period now, companies have placed employees as their most valuable assets. The major reason behind this take is that they can decide whether an organization performs better or not in addition to the reputation that it has in the industry. This set of people also determines the quality of services or goods that an organization provides. As a result, customer satisfaction is achieved. Without the necessary training, companies stand to lose in the industry as the necessary knowledge and skills are not disseminated. Trained employees are also able to retain their jobs longer in any organization as compared to non-trained ones. With all these factors in consideration, training comes out as an important part of any organizational structure. Training, as used here, is the process of equipping employees with the right skills and knowledge for their line of work. The process includes programs that are aimed at developing employees professionally.

Studies that have been done on several companies on the performance of employees based on their training show that trained employees are better performing. Besides, companies with more of them are also better placed in their respective industry. Companies with trained employees also have a better return on investment, with evidence from Becker2And Colarelli and Montei suggesting a positive relationship between employee retention rates in any organization with the presence of training programs. There are reasons why firms should train their employees, with the major one being the rapid rate at which technology and innovation are changing globally. Firms are, therefore, faced with the challenge of staying relevant in industries that are quickly adopting the changes. The rapid global changes have necessitated the adoption of training programs, with Tai stating that the skills gained therein will be important to allow employees cope with the challenges easily and in time3.

Training has also been recognized as an important determinant of organizational culture in any industry. This finding is yet another reason that managers and entrepreneurs are incorporating the programs in their organizations. The target is to achieve an organizational culture that is conducive and/or one that allows a good working environment. The management of major organizations has set up departments and other institutions within their organizations. These methods are meant to oversee the training process. The results of these efforts include an improved positive image for organizations that adopt these programs. Job training has also contributed to the reduction of the number of errors that employees make in their lines of work. The result of this case is the reduction of job-related accidents as Elnaga and Imran reveal4. Employees are better suited and comfortable at performing their jobs. This atmosphere has also improved its satisfaction in the workplace.

Training in most organizations is a function of the human resource departments, which have developed appropriate programs to oversee the training process. According to Amir Elnaga and Amen Imran, “Employee development refers to the capacity and capability building on an employee, and thus as of whole organization, to meet the standard performance level”5. Organizational performance is, therefore, a function of employee training achieved by organizations. Despite the large volume of research that has been conducted in relation to the topic, an apparent gap is evident in the effect that training has on the employees in organizations. The purpose of this research, therefore, is to attempt to close the gap through an informed investigation into the topic by reviewing the literature on the same and analyzing relevant data collected to show the relationship between training in organizations and employee performance.

Objectives

The paper focuses on the importance of training on employee performance. It will evaluate this relationship through appropriate research. To achieve professionalism and focused research, several objectives will be set based on the questions of the research. In any study, the focus on the subject is made easier through the objectives to allow a reduction of the study area. For the purpose of this research, the literature on the effects of training on employee performance will be analyzed. The sources to be used include books, reports, journal articles, and periodicals. The following objectives will be considered:

  • To define training in terms of its meaning and importance.
  • To establish the importance of employee performance in organizations.
  • To evaluate the link between training and the performance of employees in organizations.
  • To develop appropriate means of measuring employee performance.

These objectives will act as the guiding principles for the research, with the appropriate means used to achieve them.

Significance of the Research

Organizations all over the world have invested billions of dollars in employee development and training. This strategy is in the view of improving their output and overall reputation. The reasoning behind this claim, as stated above, is that with the imparting of knowledge and information required by employees, they would be better suited to perform their work. The entire process leads to improved performance of the organization as a whole. Managers also hope that employees will be able to improve the performance of their respective industries through the positive development of the most important asset that they process. Is there a link between the performance of employees and the training they get? Is the relationship positive or negative, or what impact does training have on organizations? This research is important as it helps researchers to answer the above questions.

With the large sums of money invested towards employee training, it is important to establish the value that this effort is adding to organizations. A positive result means that organizations can continue investing, as training is likely to earn them more status and global performance. A negative relationship, on the other hand, will compel managers to invest only a little in training, as the money can be used elsewhere to increase productivity. The research also allows researchers to develop better training policies for employees.

Research Questions

The stated objectives lead to the development of questions that will be important in the achievement of the set objectives. These questions are in line with the research title. Therefore, their answers will be significant in the development of a conclusion befitting the research. The major issue that the research will attempt to answer is how employee training affects performance in organizations. Subsequent questions will be developed from the objectives, with each objective having a question tailored to it. As for the first objective, the question of what training of employees is and its importance will be answered. From the second objective, the following question develops: what is the importance of employee performance in organizations? The third question from the third objective is about the link that exists between the training of employees in organizations and their performance in these organizations. From the fourth objective, the following question will be answered: how can training be used to improve employee performance in organizations?

Organization of the Research Paper

This research paper is organized into various sections that constitute the five chapters. Each of these chapters has specific roles. In addition, each of them carries a specific part of the research. The first chapter consists of introductory information with the background of the study. It attempts to define the field of research undertaken and the reason for the choice of the title. The chapter also consists of a section where a statement of objectives is provided, with the importance of the research also being covered. The research questions are also provided, and these will facilitate the research.

In the second chapter, important literature on the subject will be reviewed. The literature materials reviewed here include those selected from a series of searches performed on the topic in the different databases. In these searches, the keywords used include training and employee performance. The studies selected for the review qualified under the set requirements that they should be in English and have the required information. The studies selected from the search results also underwent a thorough investigation to see that the methodology was acceptable and that the results would, therefore, be useful.

Chapter 3 discusses the research methodology applied in this paper, with the research design also being discussed. The sampling techniques applied will also be discussed in this section. Moreover, the data collected using the methods discussed will be presented. An analysis of the results will follow, with the results of this analysis being presented in the chapter. The next chapter that follows will be the discussion of the results obtained from the data. The chapter will entail the discussion of the results in a way that tries to answer the questions raised in the research. It is from this chapter that the conclusions and the recommendations made in the last chapter will be based for the sake of future studies on the same topic.

Literature Review

The world of business is changing at a very rapid pace. Organizations are under constant pressure to keep up with the changes to stay relevant. This pressure has led to the establishment of the importance of employee training to the performance of organizations to which they are affiliated. As Tai reveals, the modern-day organizations should invest more in training programs, with much focus being to equip such employees with adequate skills and knowledge to tackle any problems, make effective decisions, and/or work in a competent manner6.

The importance of training according to Valle et al. is to improve individual as well as company capabilities with the resultant organizational change7. The training also improves employee retention within firms, thus promoting an organizational culture that is geared towards performance. The presence of training programs in organizations is also shown to be a positive indicator of the organizational commitment towards their employees, with this strategy having a motivational effect on them as well as an increased performance as Delery and Doty point out8.

Some researchers have stated that training of employees needs to be approached in a cautious manner, as these employees could also migrate after being trained to other firms that are better paying and performing. The reason behind this direction is the poor measure that is put in place by the organizations, together with their inability to negotiate terms with the employees. This necessitates a contract between the parties to ensure that there is fairness for both sides. The literature review will target to answer the questions from the four objectives raised.

Training

In any organization, the management attempts to achieve the desired performance of their employees, with this being dubbed the standard performance. The existing gap between the standard performance and the existing employee performance in an organization is of significance to managers. As such, all means should be used to achieve closure of the gap. Training has been considered the most effective method of closing this gap for a long time. It can, therefore, be described as a means of boosting the proficiency of workers to enable them to achieve managerial aspirations.

There are many documented ways of training employees. These methods include mentoring, coaching, participative learning, and peer cooperation. With the participation of employees in the learning process, workers are equipped with the various skills that are relevant to the organization and that are needed for organizational success. Training can also take place in any setup. In fact, most employees attain training before joining the job market. Pre-employment training is the most common and important type of training. All employees are required to be appropriately trained in the line of work in which they will work.

Researchers have described the training as an important determinant of organizational competitiveness. The organizations that are staffed with more trained workers have a better output compared to those that do not. Training is, therefore, mandatory in any organization with the desire to enhance its competitive advantage. They should plan for such programs in the organization9. The other importance of training in organizations is in enhancing the intellectual ability of employees. Elnaga and Imran state that it is through training that employees’ thinking capabilities are sharpened and/or are equipped with the ability to make timely decisions that are also more productive and plausible10.

With training, employees are also able to interact with customers in a manner that is beneficial to the organization, and that is likely to attract more of them. One of the areas that the employees are trained on is the interaction with customers. Elnaga and Imran reveal that trained employees are able to handle better the challenges that customers have11. The purpose of training is to replace the traditional practices that organizations perceive as being less effective in the industry with the latest evidence-based practices that are also based on results.

Some researchers have tried to define the scope of training in organizations, with Elnaga and Imran stating that training refers to planned interventions with the aim of improving the performance of employees within an organization12. In the process of training employees, organizations equip them with the competencies that are deemed important in the achievement of organizational goals. Some of the literature reviewed also indicates that training has a role to play in the reduction of anxiety in the workplace, with the frustration arising here also being dealt with in the course of training13. Training achieves reduced frustration in several ways. One is that in the course of training, employees are made aware of the expectations of the management and the organization as a whole. Those who are comfortable with these expectations are encouraged to stay in the organization as they attain more training, while those without the desire to attain the goals are given the opportunity to work elsewhere. Leaving ensures that the employees do not get frustrated in the workplace. They achieve motivation in the next line of trade.

Importance of Training

Researchers in the literature reviewed agree that training is important in organizational performance. Most of the researchers also established the importance of training in organizations as being the improvement of organizational productivity. Employees are only productive if they are trained adequately in the line of work that they are engaged in14. Researchers realize that training is important in that employees are able to get motivated at their places of work, thereby allowing them to have better job satisfaction in relation to what they would get without the training. The essence of training is also to equip employees with the necessary skills in the industry since the training that most of them get in learning institutions may not be practical and applicable in the respective workplaces.

Employees also get to learn the importance of teamwork and collaborative efforts. This contributes to the changes in organizational cultures to ones that facilitate profitability. Organizations are also able to enhance the interaction between employees and various levels of management. This tactic creates a working environment that is conducive to productivity. Training is also said to be beneficial not only to the employees but also to their employers15. Firms should invest in the training of their employees to ensure that they stay competitive in their respective industries. For employers, the increased motivation that comes with training is beneficial to the organization. In fact, it is accompanied by improved productivity.

Some of the benefits for employees can be summarized as being “increased job satisfaction and morale, increased motivation, increased efficiencies in processes, resulting in financial gain, increased capacity to adopt new technologies and methods, increased innovation in strategies and products and reduced employee turnover”16. Training is, therefore, important to the employees and employers. Effective training also benefits the organization in terms of increased competency in the industry.

Employee performance

Elnaga and Imran are among the many researchers who investigated the importance of employee performance and what it means17. In their research paper, these researchers used data from other researchers to come up with the significance of employee performance in organizations. They stated, among other factors, that employee motivation as being an important determinant of employee performance in an organization. In their research, they observed that employees who are satisfied at the workplace tend to have a better output compared to those who are not and are thus more productive. Research conducted by Lang has also shown that organizations with less desirable cultures and no training programs have a higher employee turnover because of the demotivation present at the workplace18.

Through training, employers are able to make their employees happy, hence motivating them to the tasks in the organization. The employees are capable of handling the challenges in the workplace based on the experiences that they get from the training programs. Training also makes employee motivation easy as it provides a meeting point between the employer and the employee where the employee carries the training. Kinicki and Kreitner show how this makes the achievement of organizational goals easier19. Employers who recognize the role of training in their organizations are able to create a better working environment for the efficient running of their organizations.

Researchers also state that organizations should place the acquisition of knowledge as an important function of their organizations, as this will place them among the top achievers in the respective industries. To achieve this goal, there needs to be a well-run training department in every organization, with systems in place to ensure that they are able to impart skills to their workers. Elnaga and Imran establish the positive link between training and performance at the workplace20. In the literature, they state that a well-trained workforce allows a company to be very competitive in the industry, with the organizational targets being easily achieved. Human resource departments are considered important in the development and profit of organizations. Training falls within their jurisdiction to align employees with organizational goals and targets.

Learning is a continuous process in any industry, and employees do not stop learning once they join an organization. On the contrary, employees embark on a learning experience once they join any line of trade that they are involved in. As a result, employees can develop a liking for or hate for the workplace or the work they do. The attitudes developed have negative or positive effects on employee performance and the organization as a whole. Training is important in that it allows the employees to gain only the desired job characteristics and accelerates their otherwise expected learning process. According to Ichniowski et al., “Employee performance, achieved through training, refers to immediate improvements in the knowledge, skills, and abilities to carry out job-related work, and hence achieve more employee commitment towards the organizational goals”21.

Training is also important in the creation of a learning culture in any organization. This culture allows for easy dissemination of information in the organization, with the employees contributing positively to the running of the functions of the organization. This also creates a sense of belonging and motivation to the employees, with increased output and productivity. In the definition of employee performance, various researchers agree that it is the output of an employee in an organization. According to Elnaga and Imran, “employee performance is everything about the performance of employees in a firm or a company or an organization. It involves all aspects which directly or indirectly affect and relate to the work of the employees”22.

The performance of employees in an organization is of special significance. The major function of any organization is to oversee the fulfillment of its goals, and the performance of its employees is central to this. Organizations are only as good as their worth employees, and thus the need to evaluate employee performance and aim at improving it. Performance in relation to employees in an organization has often been categorized into “Planning, monitoring, developing, rating and rewarding”23, with each stage having a significant contribution to organizational performance.

The planning element of performance involves developing strategies to oversee the achievement of organizational goals. It is at this phase of performance that goals are also set. In the monitoring part, the performance of individuals is compared to the set goals and objectives in the organization, and the employees are judged against the commitment that they expressed in the setting of the goals. It is only after monitoring prophase that employees are able to gauge their performance, with this being provided as feedback from the trainers in the respective organization.

In the process of monitoring, the standards that employees set on their own are evaluated. If these are found to be unrealistic, they are altered and used to change future strategies. After the monitoring process, which constituted the bulk of the performance, the employees are rated. Rating involves the summary of employee performance, with this being based on the period that the training has been in effect. The best performers based on this scale are then rewarded as a form of appreciation and encouragement to them and others in the organization. Through the rewarding of employees, organizations are able to communicate with the workers the desired standards.

Link between Training and Performance

The various researchers studied above have tried to explain the relationship between training and employee performance. Most of these researchers conclude that training is essential in the positive performance of organizations, and that it should be adopted as a central policy in all organizations. Some have argued that effective training programs are integral functions of the human resource management since they impart knowledge and skills necessary to ensure that workers are able to contribute to the development of organizational cultures and performance. An example of researchers depicting a positive relationship between training and positive employee performance include Elnaga and Imran who state that firms need to utilize human resource for them to be successful24. The researchers also state that there is a very low probability that organizations can be successful without utilization of their human resource and especially in the terms of training.

Employers, therefore, need to ensure that their organizations have a working human resource department, with training among the key functions of this department. The needs that arise should also be met in a timely manner by the department to ensure that there is no failure in employee motivation. Training was also established as a means of establishing the weaknesses of employees, with these being covered in the further training to be provided. Another important research conducted in relation to employee performance is the one by Sultana et al. and in their research conducted in Pakistan where the R² was stated as being 501 to indicate about 50.1% variation in the performance of employees that can be linked to the training program in place25. In the research by Sultana et al., the T value obtained (8.58) indicated that teaching is a first-class forecaster of the performance exhibited by staff26.

Another of the researchers who got a positive correlation between training and employee performance is Harrison27. In his research, employee performance is improved and enhanced by training causing a resultant increase in the organizational output and performance. Training also contributed to the achievement of organizational goals that are important in the overall success of an organization. According to Swart et al., education courses can be applied to seal the break between the available performance from staff and the preferred normal performance28.

The literature above suggests a positive relationship between the training of employees and their performance at the workplace. However, some researchers have established that some managers usually feel hesitant when dealing with human resource raining. According to Cheramie et al., one of the major reasons for the hesitancy demonstrated by the management is that the employees are now capable of changing the job or working for their own benefit29. The trained employees easily change jobs in search of higher pays after the training by organizations, and this result in losses both in investments and in revenue for the concerned organization. Due to the training of employees in these firms resulting to higher operational costs than the intended profits, the management in most of the organizations opts to source for already experienced employees instead of training them.

Some workplace factors hindering performance are based on the age of the individual, the cultural background, attitude and other demographic factors. Training is reported to be important in leveling these factors in an organization, reducing them to the suit the organization in which they operate. Technological changes are also a significant factor that necessitates the continuous training of employees in an organization, and most of the industries operating in the current business environment have to tackle this change to ensure that they remain viable. Obisi is one of the researchers who reported a positive correlation between training and employee performance30. He states that training is a process that imparts knowledge and skills to the employees to have them change their attitude at the workplace and lead to greater performance to the satisfaction of their employer and themselves. He also stated that organizations should have training programs that are focused on the particular needs of the organization. Thus, each of the programs should have its specific objectives.

Training has also been identified as an important factor in the development of organizational management. When employees are adequately trained, Elnaga and Imran report that they become more efficient and effective at the workplace. As a result, management becomes an easy task31. With the focus on management reducing because of well-trained employees, organizations can now focus on other aspects such as those contributing to the improved performance in the market. The organizations are also able to achieve efficiency through training in that the employees are shaped to the requirement of the market. Better-trained workers are also able to utilize all the organizational resources at their disposal to the benefit of the organization concerned.

Training also reduces wastage in organizations because of the increased efficiency and improved performance. Managers are able to delegate duties to the employees after training, and these are carried out in a better manner than non-trained employees would perform them in an organization. This reduces wastage of time in supervisory activities and employers are able to enhance performance in their firms. Some researchers have also supported the contribution of training in the productivity or organizations and improved competitiveness in the market. Differences have therefore been exhibited between organizations that train their employees in terms of performance and productivity. According to Gordon, “Training is a type of activity, which is planned systematically resulting in enhanced level of skill, knowledge and competency that are necessary to perform work effectively”32.

Employees also stand to gain in the training programs that organizations put them through in an attempt to improve their own performance. Through training programs, employees are equipped with the necessary skills to improve their performance, and with increased performance, organizations develop the need to reward them with salary increments and promotions. These are beneficial to the employee and cause their increased motivation. With increased motivation, employees are able to give more output and lead to positive organizational performance. Training and performance, therefore, work in a form of vicious cycle in any organization with both ends being beneficial to the organization and the employee.

Most of the studies on the employee performance and its relation to training have traditionally been focused on single organizations. The methodology applied in this research includes comparison of the output of the employees based on their training. The data obtained is then analyzed and presented in a manner that allows inference of the apparent differences. The results of most of these studies indicate that a better-trained workforce is more efficient and perfuming than those with little or no training at all. An example of these researches is the one carried out by Sultana et al. who investigated the impact that training has training on the performance of employees in the Pakistani telecommunications sector33.

In the study by Sultana et al., the researchers examined the training practices in the telecommunications sector in the country. The impact of these practices was evaluated against employee performance34. The researchers carried out a literature review as the one provided here, and their findings indicated that the there was a positive relationship between performance in organizations and the training that they provide to employees. The methodology involved the use of questionnaires in the organization, with the aim being to establish the efficacy of their training program. It was a major assumption in the paper that training has a positive influence on the performance of employees in any organizations. The researchers administered 360 questionnaires for the purpose of the study. These were given to employees in five of the telecommunication companies in Pakistan.

The results of the study indicated that organizations there were not devoted to training, and their training programs were not as oriented to the performance of the organization as they ought to be35. The study also observed that the organizations had training programs in place, but these were not tailored to the existing needs. The conclusion was that despite the absence of proper training programs in place in these companies, there is need to enhance these programs as the organizations operate in an industry where technological innovation is the sole basis of competition. They also observed that in the telecommunications industry, training should be a right of every employee and organization, as it would boost their market competency, employee performance and organizational structure36.

Singh and Mohanty also conducted a study on the relationship between training practices and employee productivity in the form of a comparative study37. In their paper, the researchers also presented a review of evidence in relation to the topic, with the human resource departments being of particular importance to their study, and particular training and its effects on employee performance. In their research, Singh and Mohanty utilized samples from the firms under study, and these had to have over 1000 employees and from different industries38.

Their findings indicated a direct relationship between the productivity of employees in these organizations with the training that they had. The findings were reflected in all the industries that were studied, with the information technology (IT) industry requiring more training and better skills and qualification for improved performance. The researchers also concluded that training is an integral part of any organization, and is directly related to the productivity of these organizations. Some market forces were established as being significantly more important and reduced the importance of training as a key pillar of success in organizations.

Research Methodology

The purpose of this study is to evaluate the relationship between training and employee performance. This chapter will describe the methodology used to achieve the research objectives, the design adopted for the study with reasons why, the sample selection and an analysis of the data obtained from the process. In any research, there are a number of methods used to answer the questions raised from the objectives. These include the administration of questionnaires, performing tests and examinations, conducting of interviews and structured exercises and case studies39. The commonest of the research methods is the questionnaires, and these are feedback forms where people under study fill a structured form with the relevant information. Interviews are also common, with the researcher engaging in the direct communication with the respondents with the use of open-ended questions. For the purpose of this research, the methodology will utilize secondary sources where data on particular organizations and industries will be analyzed and used to infer the relationship between training in this institutions and employee performance.

The research design is descriptive. No comparison with other studies in the industries will be checked. For the purpose of comparison and/or to provide a detailed conclusion and discussion, the research will collect data from five different industries and compare the effect of training in the respective organizations. The five industries on focus are agriculture, automobile industry, banking industry, the luxury industry, and the service industry. The training practices in the industries will be compared to the productivity in the market. A survey was then conducted on a sample of organizations in the respective industries, and the means used were the research databases where information on the information is recorded.

Research Design

For the purpose of this research, a quantitative approach was followed. This type of design is useful for the study as it targets to establish the relationship between the variables under study in the research. According to researchers, a quantitative approach in a research helps to describe test relationships, as well as establishing the relationships between the cause and effect and their interactions40. As an important component of this design, surveys help in the explanation and exploration of the research variables. For this reason, the research will take the design of a descriptive survey. A survey also enables researchers to document information on a population of valuables that may be too large to approach individually, as this would talk longer time and resources. In such a survey, a representative population of the group under study is selected, and this is called the sample. The results obtained from this sample are taken to represent the whole population that the research was taken from, with this being the generalizability of a research41.

Researchers also have a choice in the modes of collecting data from the sample population, and one of the important tools used for this is the use of questionnaires administered to the respondents. The selection of a descriptive survey was chosen based on the characteristic that it has of portraying the accurate characteristic of the population under study, hence its reliability in making any conclusions and recommendations. The design is also suited to the objectives of the research, as it entails the most useful means of attaining them.

Databases with information of several organizations in the industries under study were selected, and the organizations were analyzed in terms of their performance against the training programs that they have. These organizations were then grouped in to the five industries selected for study, with the data collected being based on the groups. The measures for the evaluation of the training practices were based on the investment into training that the respective human resource departments invested in over a period of ten years. The investment was calculated as a percentage or proportion of the overall investment in the industry. The measures of performance as stated were the performance in terms of profit that these organizations were able to record over e4 same period of time.

According to researchers who have done relevant research in the field of training and employee performance, the use of different industries to evaluate the effect of training is more accurate than the use of a single organization that may not be a reflection of the situation in the market. For this reason, the study utilized a number of organizations all grouped into the five industries suggested. The information gathered from these organizations and group of industries was important in drawing a conclusion on the importance of training to the performance of employees at the workplace.

From the organizations selected, the sales volume was used as a standard measure of performance over the last year, with this being an addition to the profits that the organizations reported. A scale was also developed as a means of measuring the training of personnel in the organizations selected, and this scale had a range of 1 to 5 with 1 being that the employees viewed the training practices as being inadequate, while 5 was for excellent performance of the organization based on training programs. A questionnaire was and ministered online for the employees of these organizations, and they were required to fill this feedback form and return it. The performance of organizations selected was done through an assessment of the sales and turnover in the organization with this being a function of the number of employees. The calculated values were then consolidated in to the respective industries, and the individual values obtained for these industries. A comparison for these industries was also done, with the data presented in a table and graphs drawn where appropriate.

Sampling Technique

A sample, as stated above, is a representative portion of a population with the desired characteristic under study. For the purpose of this research, the desired characteristic id the employee performance, and the population is all the organizations in the world with employees among their ranks. He sample, therefore, is a selected group of organizations with the desired number of employees in the respective industries.

The sample selected in this research includes organizations with more than 1000 employees, and from the different industries suggested above. The data for these organizations that is used to establish the number of employees is that of the previous financial year. The large number of employees that was required also informed the selection of industries above. The employees have more than 1000 employees. The purpose for the selection of organizations with such large numbers of employees was also to ensure that the data collected was as accurate as possible, and that the results could be generalizable to the other industries. The technique of random sampling was applied in this research, and this enabled a distributive research where the organization was representing a large population of industries and from many parts of the world.

Data Analysis and Presentation

The data obtained from the respective industries and organizations was analyzed and presented in an orderly manner. The first set of data collected was the average number of employees in the respective industries, and these were presented as a group in each of the industries.

Industries surveyed Average number of employees Trained employees Non trained employees Percentage of rained employees
Automobile 2378 1349 1029 56.7
Service 2296 1276 1020 55.6
Agriculture 1420 819 601 57.7
Luxury Items 1736 1021 715 58.8
Banking 2560 2142 418 83.7

Table 1; training of employee in the respective industries.

The table showed that the banking industry had the highest number of trained employees. The industry was undertaking continuous training of the employees. The agriculture sector, on the other hand, had the least number of trained employees and those undertaking continues training in the industry. The other industries had a significantly proportional number of trained employees. The data constituted the findings from the research question of training in organizations. It entailed feedback from the employees themselves. A graph drawn to represent the above information shows those industries with the highest number of trained employees were the banking and the automobile industries.

Data Analysis and Presentation

The nest set of data obtained were the number of employees who were satisfied by the training practices undertaken by the organizations in the respective industries. The employees had to rate the organizations based on the training that it had provided o them over the last five years. A particular number was awarded for the satisfaction, with this ranging from 1 to 5 as stated above. The employees then used the numbers as a measure of their satisfaction with the training programs. This information was then presented in the form of a table as shown below.

Number Industry Average training out of 5
1 Automobile 2.67
2 Service 2.98
3 Agriculture 1.45
4 Luxury Items 3.10
5 Banking 3.23

Table 2: average performance of organizations in the industries in terms of employee training satisfaction in a scale of 1-5.

Average training

The other information collected was the performance of the organizations in the respective industries, with this information being simplified. The average performance of the organizations was calculated as a function of their sales output, with this being presented in terms of profitability ratios in terms of output.

Number Industry Performance percentage (million Dollars)
1 Automobile 1.89
2 Service 0.93
3 Agriculture 0.57
4 Luxury items 1.78
5 Banking 2.25

Table 3: performance of selected industries.

These figures were then presented in the form of graphs to give a visual presentation and to enable comparison. Proportion of trained employees in the respective industries

Graph showing the average training in a scale of 5.

Performance

The performance of the organizations could be compared with the training that each of them had invested into the program. With this comparison, a graph can be drawn.

the performance of the industries against the training proportion.

Graph showing the performance of the industries against the training proportion.

Discussion of Data

The data presented shows a relationship between the organization’s and industries and the performance that each of these were able to achieve. The data shows that industries such as banking that had the largest number of trained employees and undergoing training had the largest recorded performance, with each of these performances being proportional to the training input. Agriculture that has the smallest number of employees who are trained also reported the least performance of the industries sampled.

This proves that there is a positive relationship between organizational raining and the recorded performance. The employees in organizations that had the largest number of trained employees also reported marked success in the industry. This finding can be attributed to the training. When an analysis of the same is done, it emerges that the banking industry has the largest of the observed performances along the various lines of trade. The data could, therefore be used to make a relationship between training and organizational performance. There are several ways that organizations are able to train their employees. These include the basic training that they get before joining these institutions.

The process of continuous training in organizations is a function of the human resource departments. Many have invested in this depending on the respective industry. Organizations within the information and technology industry are more dependent on training in the improvement of the productivity, as this field is constantly changing every day. Training also equips the employees in the various organizations with the necessary skills and competencies to allow them participate more constructively in the organization. The reason for this claim is that they are the engine of most organization, with the research stating that they are the most valuable asset that organizations can have. Training employees, therefore, is guaranteed to have improved performance in the respective industries and sectors.

The research showed that though most organizations have invested in the training of employees, there are still gains areas that need to be improved. Training is also not a sole factor affecting the employee performance, and these factors work in combination to influence the final products. Organizations, therefore, need to invest in measures in addition to training but not to rely on it alone. Training has also been found in several cases to affect organizational performance negatively. An example is where the workers are trained and/or opt to leave the organizations after appropriate training is given. Organizations that have more resources end up keeping their workers and snatching those trained by other organizations.

Conclusion

Literature suggests a positive correlation between the training imparted on employees and the performance that their respective organizations and industries are able to achieve. With the current changes in technology and the advances in various fields, the organizations have a special role to play in the development of the careers of their employees. The most effective way of doing this task is through training of the employees to ensure that the output is as much as possible. This study establishes that organizations with very effective training programs are more successful, and that there is a positive correlation between training and organizational output and competitiveness.

The different ways that organizations increase output through training include better efficiency and effectiveness in the running of organizations. Organizations have a better performance index if they train their employees on the desired organizational goals and policies. An effect that training has is increasing the motivation of employees, making them see that the organization is concerned about their welfare and as a result making them worker harder to achieve the organizational goals. The paper establishes that his process of employee training is a dependent process, but rather one that constitutes of other process within it aimed at achieving the best results. The research also exposed the gap in other researches that are similar, and this is in relation to the link that exists between training and performance in organizations.

Recommendations

Several recommendations emerge from the research on the relationship between training and employee performance. One of them is that the since training is established as an important part of organizational performance, organizations should adopt training policies in their human resource departments to ensure that they are successful. Training is a function of the human resource departments and these departments should therefore be equipped both financially and with adequate staff to facilitate the training. The process of training should also be incorporated within the organizations policies and objectives.

Training is not cheap to carry out, but the effects are beneficial to both the organization and the employees. The benefits also outweigh the costs required to implement the training practices within the organization. The programs for training employees should be budgeted in the respective financial years, and these should include funds to train employees annually. Training should be carried out regularly, with internal and external trainers being utilized in the process.

Organizations should also employ people that are well trained and experienced in the line of work. Since most employees currently in the workplaces are inadequately trained on the work that they are doing, the output is reduced and there are many mistakes in the work process. This has led to inefficiencies within such organizations. Employers should therefore invest in the recruitment of qualified staff members together with those that are willing to proceed with learning while at the organizations.

Employers also need to invest in the promotion of employee learning and training culture. Employees who demonstrate a desire to proceed with external training should be encouraged to do so. To avoid these employees shifting to other organizations where they perceive to have a better pay compared to the organizations that trained them, external training should be offered as a contract where only those employees willing to stay after training are sponsored. This will prevent any losses from employers in the form of employee assets. Training has also been presented as a significant source of organizational culture, and companies enhance their organizational culture through effective training. Organizations that wish to improve on employee performance, therefore, need to create a learning culture within the workforce, and this is through the promotion of activities that result to further training within the employment contract.

In addition to the presence of a human resource department in organizations, it is important for some companies in industries such as telecommunications and service industries to have independent training departments. Since these industries are constantly changing, the presence of such departments would ensure that the companies are fully served in terms of training of employees. Organizations with the least number of trained personnel need to invest in training and have measurable means of determining the success of the measures they put in place.

Training programs should be relevant and up-to-date, as little change would be obtained in the training of employees on practices that may not be beneficial to the organization as a whole. Managers also need to invest in training employees before they join the organizations. One way of doing this task is to train students in the various institutions of higher learning, and giving them scholarships to study while working in the organizations. This would be a relatively cheaper method of training employees. It also guarantees that the organizations get the correct value for the investment they make in the training programs.

Bibliography

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Cheramie, RA, MC Sturman & K Walsh, ‘Executive career management: switching organizations and the boundary less career’, Journal of Vocational Behavior, vol. 32, no. 2, 2007, pp. 323-342.

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Footnotes

  1. A Elnaga & A Imran, ‘The Effect of Training on Employee Performance,’ European Journal of Business and Management, vol. 5, no. 4, 2013, p. 140.
  2. GS Becker, Human capital: A theoretical and empirical analysis with special reference to education, University of Chicago Press, Chicago, IL, 1993.
  3. WT Tai, ‘Effects of Training Framing, General Self-efficacy and Training Motivation on Trainees’ Training Effectiveness,’ Emerald Group Publishers, vol. 35, no. 1, 2006, pp. 51-65.
  4. Elnaga & A Imran, p. 141.
  5. Elnaga & A Imran, p. 138.
  6. WT Tai, pp. 51-65.
  7. R Valle, F Martıin, PM Romero, & S Dolan, ‘Business strategy, work processes, and human resource training: are they congruent?’, Journal of Organizational Behavior, vol. 21, no. 1, 2001, pp. 283-97.
  8. JE Delery & DH Doty, ‘Modes of theorizing in strategic human resource management: tests of universalistic, contingency and configurational performance predictions,’ Academy of Management Journal, vol. 39, no. 4, 1996, pp. 802-35.
  9. Elnaga & A Imran, p. 140.
  10. Elnaga & A Imran, p. 140.
  11. Elnaga & A Imran, p. 142.
  12. Elnaga & A Imran, p. 135.
  13. Elnaga & A Imran, p. 144.
  14. Elnaga & A Imran, p. 141.
  15. Elnaga & A Imran, p. 140.
  16. Elnaga & A Imran, p. 142.
  17. Elnaga & A Imran, p. 140.
  18. DL Lang, ‘Organizational culture and commitment,’ Human Resource Development Quarterly, vol.3, no. 2, 1992, p. 191.
  19. A Kinicki & R Kreitner, Organizational Behavior, McGraw-Hill, New York, NY, 2007.
  20. Elnaga & A Imran, p. 140.
  21. C Ichniowski, K Shaw & G Prennushi, ‘The effects of human resource management practices on productivity: a study of steel finishing lines,’ American Economic Review, vol. 87, no. 3, 1997, pp. 291-313.
  22. Elnaga & A Imran, p. 140.
  23. Elnaga & A Imran, p. 140.
  24. Elnaga & A Imran, p. 140.
  25. A Sultana, S Irum, K Ahmed & N Mehmood, ‘Impact of Training on Employee Performance: a Study of Telecommunication Sector in Pakistan’, Interdisciplinary Journal of Contemporary Research in Business, vol. 4, no. 6, 2012, p. 646.
  26. Sultana, S Irum, K Ahmed & N Mehmood, p. 646.
  27. Harrison, R, Employee Development, Beekman Publishing, Silver Lakes, Pretoria, 2000.
  28. J Swart & C Mann, S Brown & A Price, Human Resource Development: Strategy and Tactics, Elsevier Butterworth-Heinemann Publications, Oxford, 2005.
  29. RA Cheramie, MC Sturman & K Walsh, ‘Executive career management: switching organizations and the boundary less career’, Journal of Vocational Behavior, vol. 32, no. 2, 2007, pp. 323-342.
  30. C Obisi, ‘Employee development, Issues and dimensions’, Unical Journal of public Administrator, vol. 1, no.1, 2001, p. 14.
  31. Elnaga & A Imran, p. 140.
  32. M Gordon, The Handbook on Manpower Planning, Blackwell Publishers, UK, 1992.
  33. Harrison, R, Employee Development, Beekman Publishing, Silver Lakes, Pretoria, 2000.
  34. Sultana, S Irum, K Ahmed & N Mehmood, p. 646.
  35. Sultana, S Irum, K Ahmed & N Mehmood, p. 646.
  36. Ibid, p. 646.
  37. Ibid, p. 646.
  38. R Singh & M Mohanty, ‘Impact of Training Practices on Employee Productivity: A Comparative Study’, Interscience Management Review (IMR), vol. 2, no. 2, 2012, p. 87.
  39. R Singh & M Mohanty, p. 87.
  40. Singh & M Mohanty, p. 190.
  41. Singh & M Mohanty, p. 86.
  42. Ibid, p. 86.