AN EVALUATION OF THE EFFECT OF TRAINING ON EMPLOYEE PRODUCTIVITY

Abstract

Training effects employee’s job performance positively. Training is a motivational factor which enhances the knowledge of the employee towards the job by which employees become proficient in their jobs and they become able to give better results. In addition, training is seen as a useful means of coping with changes fostered by tech-nological innovation; market competition, organizational structuring and most importantly it plays a key role to enhance employee performance. This paper analyses the relationship between training and its impact on employee performance in banks. Several measures of performance are analyzed including compensation, performance appraisal, and organizational commitment. Introduction Human resource has become strategic resource to gain sus-tainable competitive advantages in this age of globalization. Human capital is the differentiator between a good company and a great company. Human resource is the very important and the backbone of every organization and it is also the main Resource of the organization. Human capital is the dif-ferentiator between a good company and a great company. One significant function of Human Resource Management to the effective use of human resources is training and de-velopment. Effective training and development is an invest-ment in the human resources of an organization, with both immediate and long-range returns. Training is a key element for improved performance; it can increase the level of individual and organizational competency. Training holds the key to unlock the potential growth and development opportunities to achieve a competitive edge. Training programs helps in making acquaintance of employees with more advance technology and attaining robust competencies and skills in order to handle the functions and basics of newly introduced technical equipment. Training facilitates the updating of skills and lead to increase commitment, well – being, and sense of belonging, thus directly strengthening the organization’s competitiveness (Acton and Golden, 2002; Karia and Ah-mad, 2000; Karia, 1999).Training has the distinct role in the achievement of an organizational goal by incorporating the interests of organization and the workforce (Stone R J. Human Resource Management, 2002). There is no doubt that train-ing is important in all aspect for an organization. Training has traditionally been defined as the process by which individu-als change their skills, knowledge, attitudes, and/or behavior (Robbins and DeCenzo, 1998). The primary role of training is to improve the employees’ skill for current and future du-ties and responsibilities. Training helps them to change with aspects like technology and competition (Dessler 2000). Now a days training is the most important factor in the business world because training increases the efficiency and the effec-tiveness of both employees and the organization. Training is important to enhance the capabilities of employees. Recent researches reveal that training enables most organizations meet their goals and objectives. In doing so employees are able to learn new work concepts, refresh their skills, improve their work attitude and boost productivity (Cole 2002). On the one hand, most of the employees need training to per-form their job duties or at least to increase the quality and quantity of their work; on the other hand, skilled and efficient manpower is the most important success factor in achieving the goal of organizations. Training facilitates the updating of skills and leads to increase commitment, well – being, and sense of belonging, thus directly strengthening the organization’s competitiveness (Acton and Golden, 2002; Karia and Ahmad, 2000; Karia, 1999). Training has been an important variable in increasing organizational productivity. Most of re-searches including Colombo and Stanca (2008), Sepulveda (2005) and Konings & Vanormelingen, (2009), showed that training is a fundamental and effectual instrument in success-ful accomplishment of the firm’s goals and objectives, result-ing in higher performance and productivity of the organization. Training is a tool to fill the gap and the firms should use it wisely to improve employee productivity. Armstrong (2000) contends that trained employees often work better as teams because everyone is aware of the expectations and can achieve them together smoothly. In addition, employees who receive regular training are more likely to accept change and come up with new ideas. Training plays a vital role, im-proving performance as well as increasing productivity, and eventually putting companies in the best position to face competition and stay at the top. Past researches provides the evidence regarding the positive affect of training programs on both employee and organizational performance. Training has direct relationship with the employees’ performance. A significant relationship was found between the employees training and their resultant performance in accomplishing different tasks. By the help of training employees become proficient in their jobs and they become able to give better results.