Introduction
In the current competitive markets, the need for business organizations to produce quality goods and services in order to meet the customer’s demands is high. The production of customer-oriented products is one of the major elements that enable firms to increase competitive advantage. In other words, organizations that maintain high standards of services and products are known to attract and retain customers1.
For this reason, most organizations have embarked on improving the quality of their product offerings through the implementation of recent and efficient technological strategies. However, the implementation of new technologies within organizations has resulted in major changes within the work processes. Essentially, the increased competitiveness in the global market requires firms to improve their competencies, particularly in employees’ skills development.
Consequently, organizations have been forced to train their employees concerning the competencies required to suite the existing structures. Employee training is an important element of business success. The reason is that employees’ training directly facilitates the development of a customer’s loyalty and satisfaction. Thus, the need to raise the skill level of employees within the institution is a fundamental factor that facilitates increased performance.
Many researchers have explored the impacts of employees’ performance on business’ increased productivity. On the contrary, few studies have explored the influence training of employees have on organizational performance. As such, the study is aimed at determining specific aspects of training that foster increased organizational performance.
Importance of the project
Traditionally, training was considered essential for newly hired employees. While new employees were being trained, existing workers were assumed to have the required competency. In most cases, old workers were acquiring skills through job repetitions and experience. However, such practices have been found to be contrary to the current work environment, which is highly dynamic. Consequently, most organizations have come up with refresher courses aimed at improving employees’ skills.
Employees normally undertake refresher courses within a certain period of service. The introduction of such organizational practices was aimed at improving the skills and competency of employees. As indicated, employees’ knowledge and skills are critical factors that affect the profitability of the firm in the long-term2. In other words, organizational productivity increases in a situation where an institution hires and retains highly competent employees.
The establishment of suitable conditions in which employees can perform their duties perfectly facilitates improved productivity. Employee training facilitates the development of competencies that are essential in particular sectors of production. Thus, employees training facilitate the need for specialization, which is an important aspect of market competition3.
The reasons explain why the current firms have embarked on providing quality training to their employees. Such organizations are happy with their investments that gear towards improving the quality of service provision. In general, employee training has been identified as a critical success factor in business.
As such, this research is critical in the understanding of new training strategies aimed at improving individual employee performance. During the implementation process, the strategies are normally aligned with the intended outcome of organizations.
Under the circumstances, the organization scrutinizes the cost incurred in training its staff in relation to the contributions that these individuals make to the general performance of the firm. Before formulating the recommendations, the organization must weigh the cost and return aspects in training their members of staff.
Evaluation of the available training programs in the organization provides the basis for recommendations. The evaluation helps in establishing the relationship between training procedures and the impacts it has on the attainment of the firm’s goals, missions, and visions. Consequently, the study will enable organizations to establish essential training requirements for employees. Specifically, training programs established within business firms will be observed and necessary recommendations for improvements offered.
Studies that have been carried out in the past primarily focused on the relations between poor service delivery and the unavailability of employee training4. However, the manner in which training may affectively facilitate improved service offering by employees is a subject that has not been appropriately explored. Thus, the study will highlight organizational shortcomings due to employees’ incompetence that can be alleviated through the identification of desired training techniques.
The management class of the existing firms will, in particular, benefit from this study since important sectors that require specific improvement may be identified through this study. Additionally, programs that account for changes in the work processes may also be established. Generally, this study is critical in determining the linkage between the training attributes of employees and organizational performance.
The project objectives
Essentially, the study aims to explore the impact of employee training on general organizational performance. In other words, the study aims to determine whether employee training facilitates organisational performances, which increases its competitiveness. Training is a factor that develops employee knowledge base and skills. Within the precincts of such arguments, training may lead to organizational development.
On the other hand, lack of training has been observed to affects institutions as well as employee negatively in terms of service delivery. Nonetheless, there is inadequate information that links the performance of employees and the training offered. Thus, this study primarily aims to establish links between organizational performance and employee training. In addition, the study aims to examine the best strategies that may be implemented by the management to improve the overall employees’ performance through effective training.
Specifically, the study objectives include:
- To investigate whether training of employees improve the performance of the organization
- To establish specific impacts of training on the individual performance of employees
- To formulate appropriate recommendations to the organizational management regarding strategies that may enhance competitiveness through employee training
Research questions
At the conclusion of this study, the obtained outcomes should respond to the following questions:
- What is the impact of employees training on the organization’s performance?
- What are the specific impacts of training on employees’ performance?
- What basic recommendations if availed to the management can lead to the development of employee competencies that are necessary for quality services and product delivery?
Literature Review
Employee training is a subject that has been widely discussed by various scholars. Given the fact that employees training is a matter of interest among scholars is a clear indication that training of employees is a fundamental factor in relation to organizational success. Individual researchers have used multiple techniques to established relations between individual employee performance and existing training programs.
Most studies indicate an existing relationship between the training of employees and the organization’s performance. In general, studies indicated that training is directly related to increased productivity in terms of individual employees, which result in the augmented performance of the firm.
From the organization’s perspective, it is stated that training facilitates enhanced competitiveness through the productions of high-quality customer’s oriented services and products. Most studies indicate that the employees’ competence is improved through training hence the better quality production.
Moreover, studies indicated that an important function of an organization’s human resource department is the effective use of training and development. The most successful companies attribute their growth to quality training offered to the employees. Essentially, employees are the most important resource in a business organization.
However, effective maintenance is costly, particularly where constant training is greatly needed. Nevertheless, constant training and development are important since a highly competent workforce contributes to the growth of the organization. The reason why highly skilled employees are costly to the firm is that increased skills and competency attracts higher compensation in terms of wages and salaries5. Thus, organizations should come up with strategies that encourage employees to work efficiently.
Conventional concepts of employees training
Most firms considered training as essential for only newly hired employees. In fact, emphases were made to ensure that new recruits understood the manner in which the firm operates. While new employees were being trained on the firm’s culture and operations, existing workers were assumed to have the required competency to perform their duties. However, such notions were found to have negative impacts on the firms’ productivity and general performance.
Consequently, most organizations designed refresher courses that were aimed to enhance the knowledge and skills of existing employees. The refresher courses were programmed to be periodically undertaken. The introduction of such organizational practices was premised on the fact that employees’ knowledge and skills are factors that affect the profitability in the long-term. In other words, organisational productivity increases in a situation where an institution hires and retains highly competent employees.
Conventional organization managers also believed that establishing suitable conditions in which employees can perform their duties perfectly facilitates improved productivity. Training is one of the conditions that result in the improvement of employees’ performance. Essentially, employees’ training facilitates the development of competencies that are vital in particular sectors of production.
Thus, employees training facilitate the need for specialization, which is an important aspect of the organizational work processes. The reasons explain why the current firms have embarked on providing quality training to their employees. Such organizations increase their investments in training and development of employees due to improved quality of service provision. In general, employee training has been identified as a critical success factor in business.
The relationship between training and increased attitude of employees
Recently, organizations are appreciating the value of their employees that are accompanied by the changing production trends. The changes in the production trends introduce new values to existing employees in terms of skills and knowledge. Thus, training is a significant human resource attribute that may accordingly adjust employee’s attitudes. Studies suggest that training sustains organizational productivity through empowering employees in terms of innovations and creativity6.
Separately, training employees help a business survive in a competitive market environment. For this reason, employee training supports successful organizational wealth creation. As such, without training, employees perform their duties dismally. In other words, organizations that do not support employees training have decreased successful probability. Essentially, a lack of training negatively influences the organization’s performance.
Organizational management studies indicated that different approaches should be utilized in order to achieve successful employee training. Most business institutions use specific training strategies and designs to achieve the intended goal of enhancing worker’s skills. Training is normally aimed at improving the skills of workers, which in turn influences their performances.
The improved performances of employees consequently result in improved productivity and customers’ satisfaction. The old ways of training employees are facing a number of challenges that include the mode of selecting employees, strategic implementation, and purpose uncertainties.
In fact, other studies indicated that with the traditional training methods, the managers would not directly determine the kinds of training desirable for junior employees7. Consequently, cases of employees’ resistance to change often arose.
Nonetheless, the managers’ inclusion in the determination of training content and strategies to be implemented based on individuals potentials and existing problems have been observed to be more effective. Moreover, the inclusion of managers in such initiatives ensures that employees perform duties according to their skills and ability.
The development of employees’ skills has been shaped by different theories that were formulated by various scholars. In fact, various scholars assert that employees’ learning process during training is affected by such factors as access to literal material and availed content. Based on theories developed in the recent past, the means of access to important information have continuously been changing.
In other words, traditionally information was obtained from books and print media while presently, individuals’ access such critical literal materials electronically. The reason explains why e-learning has been preferred in place of the classroom training traditions.
Improvement in the new and existing modes of delivery emphasizes the importance of training employees. Based on various studies, some skills were important in the past but are not needed in the present training system. As such, it is important to ensure that employees are well equipped with the necessary knowledge and skills.
Technologies, machines, and equipment have been used to replace the unskilled labor departments. The implication is that the remaining sections require high-quality human intelligence. The need to match machines necessitates the improvement of human skills to be in line with what is offered by improved technology.
Previous studies negatively relate performance and lack of investment in training and development of employees. Essentially, firms that do not invest in training and development of employees are likely to have decreased perform. Therefore, training helps in the improvement of both employee performance and the overall growth of the organization. Essentially, training brings about behavior change and efficiency in terms of performance as well as improved skills and ability.
Further, for business organizations to maximize their profits and ensure customer satisfaction, they must invest in quality employees’ training. The most successful companies attribute their growth to training their employees. Training enables employees to gain relevant knowledge and skills. The direct benefits of training employees are that organizations enjoy reduced operational cost, low employee turnover, customer satisfaction, and increased revenue.
The current market conditions require organizations to invest heavily in their employees’ development in terms of new skills and competence in order to enjoy consistent profit margins. Consequently, in situations where employees’ training and development is not enhanced, the organization experience losses due to the increased cost of production as opposed to returns.
Provision of quality service is hindered, especially due to technological advancement adopted by the competitors, which brings about a shift in clientele loyalty. The effect is especially notable during the evaluation of the annual reports, which indicates the losses and the profits made by the organization.
Trained staff is considered the most important asset of the organization. Performance of both employee and returns of the organization are impacted negatively by a lack of trained staff. Therefore, an organization should establish and implement the appropriate training programs that would ensure increased performance.
Methodology
Research procedures
In order to investigate the impact of employee training on an organization’s performance, this particular research study will utterly be quantitative research. The requisite research data will be gathered across the study population through sampling strategy. A research technique dubbed as the survey method will essentially be drawn on while descriptive statistics will be applied to help analyze the obtained data.
By employing these research methods, any ensuing unanticipated research hypothesis will possibly be suggested as well as formulated, and the study will be much quicker and somewhat cheap8. The methods used in this study are sequentially considered to be amongst the best given that they rarely stand a chance of disqualifying any notable alternative explanations. In addition, the research methods surmise to the event causations.
To illustrate the relationship between employee training and the organizational performance, the suggested descriptive statistics will accrue from the observations made.
Besides, the researcher proposes to utilize the stipulated research methods by taking into consideration crave to acquire first-hand research data in addition to other related investigated information from the respondents. The process is perceived to assist in devising sound and rational study conclusions amid offering feasible recommendations for the research being conducted.
The primary and secondary sources of data will be utilized in this study. The information from both primary and secondary sources will be analyzed to present appropriate findings and propose recommendations based on the findings. However, the primary research information and desired data for this novel study will be obtained by administering self-designed survey questionnaires and conducting in-depth interviews with the study targeted population.
In fact, the researcher intends to administer the questionnaires to the study participants in person through choosing each third organization’s respondent initially incorporated in the study population. Interview schedules that have already been approved to help gather information on the impact of employee training on an organization’s performance will equally be used to establish the management and employees observations on the extent at which the organization has dealt with the ensuing employees training issues.
On the other hand, the secondary research data and information will accrue from staff records and any other training documentation that has been filed by the organization9. A review of the employees training and organization success information, training implementation processes, acceptance, and any resistance will be done to obtain secondary information.
Such research information will facilitate the ascertainment of whether the organization in question has any primed employee training implementation policies, the level of employees training success, and how well the training process has been managed to help spearhead the organization’s success. Because the research majorly focuses on employees training and organization’s performance factors, the correlations that exist between these two variables will amicably be sought.
The variables that the researcher intends to evaluate will be as indicated below:
- Dependent variable = the organization’s performance or productivity.
- Independent variable = the employees training or the acquisition of skills or knowledge.
Thus, to ascertain the general impact of employees training on an organization success, a regression formula S = a + a1T will be applied. In this formula, S stands for the organization success in terms of productivity or output, whereas T represents the employees training expenses. ‘a’ is the regression line intercept, and a1 is the regression coefficient. In essence, the content analysis method will extensively be applied to gauge the correlation that exists between variables.
Limitations to methodology
Given the kind of research study to be carried out, the stipulated timeframe might hinder the full investigation and cover of all the organization training and success parameters. Moreover, training factors are not easily measured since most of such variables are non-quantifiable. The limitations are anticipated to pose considerable threats when the gathered research data are evaluated and consequently analyzed.
Population and sampling strategy
In this particular study, all employees are deemed viable when carrying out the research. However, the population target will only be a few selected employees as well as some managers. From the total number of employees present in the organization, just eighty workforce or staff members will be selected via a technique dubbed as convenience sampling strategy and the research questionnaire will be administered to help in addressing the formulated research questions.
For this study, the proposed sample size will comprise of fifty participants, mainly employees. In addition, fifty staff records and documents will be picked for the quantitative study. Moreover, the participants will be interviewed to help the researcher obtain the study of qualitative data.
Key informative and well-structured in-depth interviews will be performed with the study participants whereas probability sampling will be conducted through designing a list employee working in the organization10. Amongst the chosen employees from the organization, half will undertake the in-depth interviews given that from the designed participant’s list, every second employee from the organization will be selected to partake in the structured interview.
Regardless of the fact that the chosen sample size of fifty employees materializes to be exceptionally small given the type of research study to be carried out, the constraints such as the available financial resources and the planned timeframe make it completely necessary to confine the study selected sample to the precisely specified size.
Data collection
Data perceived to be containing the relevant research information for this study will be acquired from the primary as well as the secondary sources. In fact, as a field survey and a study that involves self-administration of research questionnaires, the pertinent primary data that include the organization employees training information will have to be gathered via self-administration of the study questionnaires, conducting structured in-depth interviews to the chosen employees, and through observation.
In essence, a comprehensive exploration instrument will be developed besides being satisfactorily tested prior to embarking on the actual employees training and organization’s successful research study. In other words, after consultation with the supervisor, a questionnaire will be developed, and only the selected and amended items that address the study questions and objectives will be included in the questionnaire.
Primary data collection
As a field survey, the organization’s employees training information will be collected through administering properly designed research questionnaires, observation alongside conducting well-structured in-depth interviews to the randomly selected employees. The soundly designed research questionnaire will be administered to fifty employees. Each part of the questionnaire will constitute key items that suitably attend to the research questions.
For instance, part one will constitute the reason behind lack of employees training, while part two will elicit whether the organization recognizes and similarly support employees training plans to boost its success.
Other parts will generate insights amidst offering recommendations to the organization to adopt or abandon the employees training strategy to augment success. Some items in the questionnaire will throw light on the training policies, the impact attached to such policies along with workforce knowledge of the existing training policies.
The questionnaire will thus be made of both open and closed-ended research questions, and this is believed to be of great significance to the researcher since it will assist in performing data analysis. Minor research tools namely direct observations, personal in-depth interviews, and occasional conversation will also be used to collect primary data11. Different scales will, however, be applied in the survey questionnaire during data collection to ensure the scales reliability and validity of some research questions.
For example, an ordinary scale will be applicable in various research questions given that most questions will measure knowledge, feelings, and experience. In contrast, the scale reliability will be made certain by applying the repeatability and internal consistency concepts. This implies that the questionnaire will comprise of different questions asking about the same thing yet in a very different way. Finally, the split-half technique will be applied to attain internal consistency.
Secondary data collection
Conversely, secondary research data will be acquired from the organization’s staff records and other documents, which contain the employees training information and organization success. For this particular case, the researcher intends to trace the employees training history and the organization’s performance over the past years from the secondary research sources.
Hypothesis testing
The study examines the relationship between employees’ training and the organization’s performance. Most studies indicate that training increases the organization’s performance. As such, the study tends to test the assertion that training increases the organization’s performance. Therefore, the hypothesis of the study include
- H0: Employees training increases the organization’s performance
- H1: Employees training reduces the organization’s performance
Independent variable
The independent variables in this study are the attributes that influence the general performance of the organization. In most cases, independent variables cause changes either positively or negatively on the dependent variables. In this study, training attributes causes either increased or decreased general performance of the organization. As such, training attributes are the independent variable. The study will tend to determine how the independent variables relate to the organization’s performance.
Dependent variable
In this study, the dependent variable is the organization’s performance. The study will tend to determine the manner in which training of employees influences the performance of the organization. The performance of the organization is measured in terms of increased productivity. In this case, the organization’s performance is the general productivity of the organization.
The problem
The realization that lack of training can have adverse effects on the performance of institutions has led to reorganizations of the production processes. Most recently, organizations have come up with compliance and quality control departments in the quest to determine the kind of training that may be suitable for their employees. Though such initiatives are noble, the establishments of such bodies have often resulted in increased cost of production.
As such, companies have been able to produce high-quality product and services, but the process offering has compromised such companies’ competitiveness. Thus, it has been established that a lack of sufficient and reliable information linking specific elements of training with the performance of employees is a major problem for institutions that intend to implement such strategies.
Further, institutions have been unable to establish the specific training attributes that may facilitate improved performance of employees undertaking diverse functions. Such attributes and relations will be explored in this study.
Data analysis
In order to ensure logical completeness as well as response consistency, the researcher will edit the acquired data each day to be able to identify the ensuing data gaps or any mistakes that need instant rectification. When data editing is completed, the collected research information will definitely be analyzed qualitatively and quantitatively.
For example, any data that will be collected through secondary sources such as the employees training files and the organization success documents will be analyzed by means of content analysis along with the logical analysis techniques.
Furthermore, from the acquired independent variables values such the organization’s employees incurred training expenses and the study dependent variable which is the organization’s performance measured in terms of total output or general productivity, ANOVA and regression analysis will be applied to establish the correlation that exists between employees training and organization’s performance.
To obtain the best correlation approximation values, the study quantitative data analysis will be carried out by utilizing the integrated SPSS software. Further quantitative data analysis techniques, including percentages, frequency distribution, and deviations, will be used to determine the research respondents’ proportions that chose various responses.
The method will be applied for each group of items available in the questionnaire that ideally corresponds to the formulated research question and objectives. Line graphs, tables as well as statistical bar charts will be used to make sure that quantitative data analysis is simply comprehensible12.
Results
1. Does the organization offer training facilities to the employees?
2. Does the training offered by the organization improve your skills at work?
3. Do the training strategies improve your work performances?
4. Do you think the organization needs to invest in employees training and development?
5. How frequently do the organization train the employees?
6. Does the top management of the organization recognize the importance of employees training programs in the general business increased output?
7. Do the training of workers on various skills and competencies contribute to a significant increase in the general performance of the organization?
8. The organization has a method of measuring the relationship between employees training and the generally increased output
9. The organization’s total annual output increases because of the training offered to employees
10. What is your experience with the organization?
One-way ANOVA
Regression
The results clearly show that the relationship between the two variables holds and it can be stated that the organization’s performance is dependent on employees’ training. In other words, employees’ training has a direct influence on the performance of the organization. Further, the research revealed that the null hypothesis is true, and increased the organization’s performance is dependent on employees training.
Conclusion
The study revealed that improved organization’s performance depends on the employees training. As such, organizations need to train employees concerning the competencies required in order to increase their performances. The study also confirms that employee training is an important element of business success. As such, the study concurs with the view that employees’ training directly influences the performances of workers, which in turn increases the general output of the organization.
Thus, the need to raise the skill level of employee’s within an institution is a fundamental factor that facilitates increased performance. In addition, firms should come up with strategies aimed at improving the knowledge and skills of the employees.
References
Brum, S., “What impacts does training have on employee commitment and employee turnover?” Academy of Management Journal, vol.35 no.5, 2007, pp. 921-955.
Jelena, V., “Employee training, development, and the learning organization,” Economics and Organisation, vol.4 no.2, 2007, pp. 209-216.
Spector, P. E., “Method variance in organizational research,” Organisational Research Methods, vol.9 no.4, 2006, pp. 221-232.
Ciccarelli, H., Improving employee performance: Effective training. Kogan Publishers, London, 2007.
Footnotes
- Jelena, “Employee training, development, and the learning organization,” Economics and Organisation, vol.4 no.2, 2007, pp. 209-216.
- S. Brum, “What impacts does training have on employee commitment and employee turnover?” Academy of Management Journal, vol.35 no.5, 2007, pp. 921-955.
- V. Jelena, “Employee training, development, and the learning organization,” Economics and Organisation, vol.4 no.2, 2007, pp. 209-216.
- H. Ciccarelli, Improving employee performance: Effective training. Kogan Publishers, London, 2007, p.119.
- V. Jelena, “Employee training, development, and the learning organization,” Economics and Organisation, vol.4 no.2, 2007, pp. 209-216.
- S. Brum, “What impacts does training have on employee commitment and employee turnover?” Academy of Management Journal, vol.35 no.5, 2007, pp. 921-955.
- S. Brum, “What impacts does training have on employee commitment and employee turnover?” Academy of Management Journal, vol.35 no.5, 2007, pp. 921-955.
- P. E. Spector, “Method variance in organizational research,” Research Methods, vol.9 no.4, 2006, pp. 221-232.
- P. E. Spector, “Method variance in organizational research,” Research Methods, vol.9 no.4, 2006, pp. 221-232.
- P. E. Spector, “Method variance in organizational research,” Research Methods, vol.9 no.4, 2006, pp. 221-232.
- P. E. Spector, “Method variance in organizational research,” Research Methods, vol.9 no.4, 2006, pp. 221-232.
- P. E. Spector, “Method variance in organizational research,” Research Methods, vol.9 no.4, 2006, pp. 221-232.