The impact of Training and Development on Employee

Performance: A case study of Allied Bank Limited Lahore City,

Punjab, Pakistan

Abstract:

The study focuses on the impact of training and development on employee performance at Allied Bank Limited,

Lahore Pakistan. For data collection questionnaire is used. The study was limited to employees of ABL. There are

two Variable Training & Development (Independent) and Employee’s Performance (Dependent). On the other

hand, the study also showed from the literature that there are strong positive relation between of training and

development and employee performance. The backbone of any business is its employees. The firm’s success or

otherwise depends on the performance of its employees. Hence, top management is much aware of the

significance of investing in training and development in order to improve the performance of employees.

KEY WORDS: Training, Development, Employee Performance

Introduction:
Training and development is the most important concepts of Human resource management. In this
article we discuss about Training and Development on performance of employee. We realize In early age
specifically after 2nd world war the organization have come to recognize that without training they can't
get success, then the organizations commenced emphasizing on education, First organizations in United
country started out giving training to their employee, In 1910s, some organizations (popular electric
powered, Westinghouse, international Harvester) have been having manufacturing facility schools to
educate their personnel in an effort to expand their technical competencies as they found out the
significance of training and development. Even though few researchers disagree about the significance
of training and development on the fulfillment of organization because it involves huge fee that could
affect prioritization.

The survival of any business enterprise within the competitive society lies in its ability to educate its
human useful resource to be innovative, creative, imaginative who will always enhance performance
and increase competitive benefit .Company can never reach its heights without the efficient
performance of employees. Therefore, the performance control system came into effect as a control
reform to address and redress issues, companies had about performance (Sharif, 2002). In banks area, a
wide variety of reforms that target the overall performance have additionally been carried out (Downs,
Chadbourne, & Hogan, 2000; Gleeson & Husbands, 2001).

Performance refers to the accomplishment of something or mere working effectiveness. In an employer

overall performance is found out at the tiers of employer, manner and people and the interrelationships
among those will define the vantage points of the organization. In contributing to the general goal of the
organization, training and development approaches are applied as this benefits not just the
organization, however also the people making up that organization. For the agency, training and
improvement leads to enhance profitability. Training plays massive role in reaching organizational
targets by keeping visible interest of employees and organization (Stone J.R. Human resource 2002).

Training consists of 'soft' abilities which includes software training, management training. While
development focuses upon the activities that enhance employee abilities for future .employees
development is a long term manner that contains, mentoring, succession planning, coaching etc.
Training and development is an aspect of human resource practices that assist in employees’ abilities,
information, and competence able to enhancing personnel’ ability to perform extra effectively. Training
and development play an important function in the effectiveness of an organization. It's one of foremost
pervasive techniques for improving employee’ overall performance enhancing organization productivity
within the work area. Employees are the integral asset and key element of gaining competitive
advantage of any organization and training is its important tool.

For the individuals, training and development enhance job information at the same time as also assisting
in figuring out with the goals of the organization. Training and development is defined because the
planned learning experiences that teaches employees the way to perform current and future jobs.
Overall performance contributes to the growth of the organization specifically since they'll implement
together competences and experience acquired through training and Development. Further, training
and development and the way it influences the performance of the employee in the business setting
have received a giant attention from the researchers.

Significance of the study:

Training becomes inevitable the instant an organization realizes the necessity for improvement and
enlargement within the job. however often times, organizations start job enlargement and enrichment
to push employees' morale, motivation and satisfaction when in the reality the real drawback with work
performance lies incapacity development. The study becomes necessary as a result of several
organizations during this contemporary world are effort to achieve competitive edge and there's no
means this may be achieved while not increasing employees' competencies, capabilities, skills etc.
through adequate training designs. However this study will help to identify the challenges that
management has to face during training and development of employee performance.it will also help
management in planning for the development and implementation of effective and efficient training
needs that will leads to increase performance of the employees’.

Objective of the study:

  To determine the impact of training and development on employee performance.

Research Questions:
 Is there positive relationship exists between training and Development on employee
performance?

Literature Review:
Training and development

Training and improvement are indispensable strategic tools for effective person and corporation overall
performance, thus, organization spending high level money on it with confidence that it'll earn them a
competitive advantage inside the international enterprise. However, for any business enterprise to gain
its stated desires and objective in this competitive world, adequate and relevancy, training and
development of personnel can't be over emphasized. However organization are expected to identify
training need of its employees and design education program with the intention to assist to optimally
utilize their group of workers in the direction of actualization of organization goal. Employees are the
maximum valuable Assets of every employer, due to the fact a skillful paintings without Human capital is
not feasible getting this stuff in thoughts each organization is making an investment a huge capital in
training and development.

Training and development are deliberate gaining knowledge of stories which educate personnel the way
to carry out modern and destiny jobs extra effectively. Sims (2002) emphasizes that training specializes
in current jobs where as development prepares person for possible future jobs. Basically, the goal of
training and improvement is to make a contribution to the corporation's overall goal. In the view of
Ceylan D, et al (2010) innovation of product and methods and also in organization and employees’
creative thinking is directly connected with the surroundings.

Human Resource Management and Training

McDowall et al. (2010) argue that the popularity of the significance of training in latest years has been
heavily influenced by the intensification of competition and there relative success of organizations in
which investment in employee development is significantly emphasized. They add that technological
developments and organizational change have gradually led a few employers to the belief that success
depends on the abilities and talents of their workers, and this suggests extensive and continuous
investment in training and development. The view of Beardwell and Holden (1993) is that Human
resource management concepts together with dedication to the organization and the growth inside the
quality movement have led senior management groups to realize the multiplied importance of training,
employee improvement and long-term training. Such ideas require no longer best cautious making plans
but an extra emphasis on employee development.
Related theories of Employees Training and Development

There are numerous theories propounded to clarify the relevancy of training needs in any establishment
of organization. In social learning theory, employee collect new skills and understanding by means of
looking at other members of staff whom they trust in and as properly agree with to be credible and
greater knowledgeable. The concept posited that training and learning is influenced by individual’s self-
efficacy and his ability to effectively research new skills, which may be influenced via encouragement,
oral persuasion, logical affirmation, statement of others. . Reinforcement theory believed that training is
a strategic tool to make job thrilling to the employees and because the avenue for the employees to
improve themselves for most fulfilling performance that can culminate to promoting personnel for
awesome overall performance, innovation, creativity because of training attended. . The resource-based
view (RBV) of the firm advocated that an organization can benefit competitive advantage by attracting
and retaining competent human resource nicely become aware of applicable training for them in order
to maintain enhancing their ability for most reliable overall performance. Through implications, the
effectiveness of training and getting to know relies upon on the sample of the task related expertise,
abilities, capability, talents and behavior which are important for more performance which continually is
able to influencing organizational success.

Employee Performance:

Recognizing the role of training practices, change the highest executives to form higher working
atmosphere that ultimately improves the motivational level similarly because the performance of the
work force. A term typical to the Human Resource field, employee performance is everything regarding
the performance of employees during a firm or a company or an organization

Performance = (ability) x (motivation)

Employee Performance = employee competency x training and development

Employee performance relies on individual factors, namely: talents, knowledge, skills, experience,
and temperament (Vroom, 1964. it's up to employee that however he performs high in a job and high
productivity and sensible results should be delivered by worker (Hunter & Hunter, 1984). employee
satisfaction may be measured with help of things like job satisfaction and absence (Gibson, 1990). If the
staff are playing well then the overall image of the corporate is boosted as a result of employees
perform good if they're satisfied with their work so that they won't leave the corporate that shows their
faith within the management that they're taking care of their employees, the staff leaving the corporate
or firm don’t have smart opinion concerning management and that they begin to talk bad this company
as shortly as they leave it, that ends up in destruction of reputation and during this changing world
reputation is everything. Regard less of what the work is, a personal performance shows the
understanding and capability to accomplish the targets connected with correctness (Shanawany, 2001).

Training and development on Employee performance:

Not everybody who joins the organization is absolutely aware or up to the job at the instant he
joins the organization. As we all know learning is continuous method thus everybody has always a
space for learning one thing new. therefore the staff who could also be appropriate for job however let’s
say they are bit older and that they are playing well within the organization, however what if at their
time the technology used wasn't a similar as its now? They’ll face clearly issues in performing
well, therefore the training and development programs facilitate everybody to be told one thing new or
improve current skills. The wants of job may be meet by providing employees proper Training (Dayal,
1970).Nearly same purpose was mentioned by (Arnoff,1971) he mentioned that hurdles in adopting new
technology or barriers that staff face in performance may be removed by conducting trainings sessions.
Training and development play a vital role in human resource management because it help to groom
and improve skills of staff that successively will increase employee performance (Guest,1997).

Research Model
This study will give attention to the training and development on Employees’ Performance in Allied bank
of Punjab. However as obtained in the literature reviewed above, we proposed the following model
depicted in figure 1.

Training &
Development

Employee
performance

Fig.1.Research model

Research Methodology:
This study investigate the impact of training and development on employee performance .Five point
Likert scale that best describe the extent to which the respondents agree with each items in the
questionnaire was used. Questionnaire was prepared in English Language and was distributed limited.
Population of this study is ABL of Lahore, which covers 100 employees of 15 branches.

Questionnaire: Training and development on employee performance

Please tick the appropriate option according to the following scale
1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strongly Agree

No Statements 1 2 3 4 5

1 Employees enhancement come through Training & Development

2 Training and Development brings positive attitude in employees
3 With training and development job knowledge increase in employees
4 Training and development teach the technique of performing a job to employees
5 Training and development enhance the skills of job of employees
6 Most of the employees consider training and development vital for job
7 Most of the employers consider training and development waste of time and waste of
money
8 Most of the employers give training to their employees
9 Training and development is essential for banks employees
10 Competency level of employees increases due to T&D
11 Training and development boost up the morale of the employees
12 Training and development reduce the stress of the employees
13 High morale employees give better performance
14 T&D reduce consumption of time and cost and increase performance

Demographic Profile

Gender
 Male  Female
Age
 Below 20 years  20-25  25-30
 30-35  35-40  Above 40 years
Marital Status
 Single  Married
Education
 Primary  Secondary  Intermediate
 Graduation  Post graduation  MS/ Mphil
Occupation
 Student  Businessman  Govt job
 Retired  Unemployed  Others
Monthly income
 Upto 20,000  Rs 21,000-40,000  Rs 41,000 – 60,000
 Rs 61,000 – 80,000  Rs 81,000 – 100,000  Rs 100,000 and above

References: