TRAINING AND DEVELOPMENT AS A TOOL FOR ENHANCING EMPLOYEES PERFORMANCE (A STUDY OF UNITED BANK FOR AFRICA NIGERIA PLC, LAGOS)


Content

ABSTRACT

Training and Development as a tool for enhancing employees' performance, was undertaken to find out if the Training and Development has a positive effect on the performance of employees. Many employees have failed in their organization because their needs for training and development were not identified and provided for as a dispensable part of the management function. The aim of this study is to ascertain if training and development is really serving as a tool for enhancing employees' job performance in Nigeria thereby investigating the performance of the various employees of United Bank for Africa Plc and how employees training and development has gone as far as improving their operations. Four research questions were formulated from the objectives of the study and tested using simple percentage and two hypotheses were tested using Chi Square. The researcher made use of survey research design to determine whether there is a relationship between the dependent and independent variables. The research instrument used here is a questionnaire that was distributed to a sample size of one hundred and seventy (n=170) management and staff members of United Bank for Africa plc. Data were also source from the internet, economics textbooks and relevant newspapers and magazines. The major findings of this study states that the organization considers the training as a part of organization strategy and training program helped the organization to achieve its objectives. The findings also indicate that more training programs are provided to the new staff and also as per the requirement. Most of the time organization faces problems due to non-availability of the skilled trainer to train the employee.


 

TABLE OF CONTENTS

                                                                                                                                    Pages  

Title                                                                                                                                i                                                     Certification                                                                                                                  ii                                                      Dedication                                                                                                                   iii                                           Acknowledgement                                                                                                       iv                                            Abstract                                                                                                                         v                                                 Table of Content                                                                                                          vi

List of Tables                                                                                                             

CHAPTER ONE: INTRODUCTION

1.1       Background to the Study                                                                             1

1.1.1 Training and Development                                                                               2

1.1.2 Employees' Performance                                                                                  4

1.1.3 Training and Development and Employees' Performance                             5

1.2       Statement of the Problem                                                                             7

1.3       Aim and Objectives of the Study                                                                 7

1.4       Relevant Research Questions                                                                       8

1.5       Relevant Research Hypothesis                                                                     8

1.6       Significance of the Study                                                                              9

1.6.1 Importance to the Company Concerned                                                          10

1.6.2 Importance to the Individual                                                                            10

1.6.3 Importance to the Society At Large                                                                  10

1.7       Scope of the Study                                                                                        10

1.8       Definition of Terms Management:                                                              11

            References                                                                                                     13

CHAPTER TWO: LITERATURE AND THEORETICAL REVIEW

2.1       Preamble                                                                                                        17

2.2       Theoretical framework of the study                                                            17
2.2.1    Human Capital Theory                                                                                17

2.2.2    The Modernization Theory                                                                          18

2.2.3    The Dependence Theory                                                                              18

2.3       Empirical Review of Previous work in the area of studies                        20
            References                                                                                                     28


CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Preamble                                                                                                        33

3 2       Research Design                                                                                            33

3.3       Population of the study                                                                                 33

3.4       Sampling, Procedure and Sample size                                                        33
3.5       Source of Data Collection                                                                             34

3.5.1    Primary Data                                                                                                 34

3.6       Method of Data Analysis                                                                              34

3.7       Limitation of the methodology                                                                     34

            References                                                                                                     35

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1       Preamble                                                                                                        36

4 .2      Presentation/Analysis of Data According to Research Questions 36

4.3       Test of Hypotheses                                                                                        42


4.4 Discussion of Finding                                                                                          44

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1       Summary                                                                                                       46

5.2       Conclusions                                                                                                    46

5.3       Recommendations                                                                                         49

Bibliography                                                                                                              51
Appendices                                                                                                                59


 

LIST OF TABLES

Table 4.1 Gender Distribution

Table 4.2 Distribution by Marital Status
Table 4.3 Age Distribution

Table 4.4 Distribution by Educational Qualification
Table 4.5 Distribution by Work Experience

Table 4.6 Analysis of Research Question 6

Table 4.7 Analysis of Research Question 2

Table 4.8 Analysis of Research Question 8

Table 4.9 Analysis of Research Question 19

Table 4.10 Analysis of Research Question 7

Table 4.11 Summary of Research Findings

 


CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Training has been recognized as one of managerial tools that enhanced job satisfaction
globally. Training is, basically, a practical education through 'which knowledge and skills
develop, experience and inefficiencies are overcome and closer approximation can be
achieved (Atif, et al, 2011). Human resource specialists who realize the value of training and
development have taken deliberate decisions to encourage management of organizations to
give their employees significant autonomy to develop their skills and have made a wide range
of training available across their organizations, tailored to meet the needs of employees.
Sajuyigbe and Amusat, (2012) reported that training .and development have enhanced
personal employees' performance. Grund, (2001) also agreed that training has improved
employees performance in term of increased in productivity. Particularly in areas such as
sales, customer services and IT, also improvement in retention rate, and higher levels of
personal job satisfaction. Higher productivity and improved employee performance will rely
on employees having the right skills.

Jones et al, (2008) also agreed that training deals with the efforts made to bring improvement
in the performance of employees. Results of a 2000 survey of 271 network professionals
conducted by Lucent Care showed that the most important factor in employees' performance
was the opportunity to learn new skills (Blum and Kaplan, 20(0). The importance of training
has grown in last few years because of rapid growth in the management practices, and
increasing demands of the employee job. Thus training is the best solution to improve
employee's understanding and let them know how to use the specific skills (Muhammad,
2012). Training is managerial tool which enhances employees’ skills to cope with the
problem of bank distressed syndrome that facing Nigerian bunking industry where many are
thinking of merger and acquisitions.

1.1.1 Training and Development

Training can be defined as a learning process in which people acquire knowledge, skills,
experience, and attitudes that 'they need in order to perform their jobs well for the
achievement of organizational goals (Mathis and Jackson, 1998), A survey of the literature
shows that T&D are variously defined in a narrow as well as in a broad sense. For example
Jackson and Schuler (2000) refers to training as the act of improving competencies needed
today or in the future while development refers to improving competencies over the long
term. Matthews, et. al., (2004) argues that training is concerned with providing an individual
with the opportunity to learn what he/she needs in order to do their job more effectively. Also
management training is considered to be a process of enhancing an employee's capacity to
handle greater responsibilities successfully (Singh and Vinnicoinbe, 2003).

Training has the distinct role in the achievement of an organizational goal by incorporating
the interests of organization and the workforce (Stone, 2002). Nowadays training is the most
important factor in the business world because training increases the efficiency and the
effectiveness of both employees and the organization. The ultimate aim of every training and
development program is to add value to human resource. Any training and development
program that would not add value should be abandoned. Organization should therefore make
training and development of their employees a continuous activity.

Development describes the growth of humans throughout the lifespan, from conception to
death. The scientific study of human development seeks to understand and explain how and
why people change throughout life. This includes all aspect. of human growth, including
physical, emotional, intellectual, social, perceptual, and personality development. The scientific study of development is important not only to psychology, but also to sociology,
education, and health care. Development does not just invoke the biological and physical
aspects of growth, but also the cognitive and social aspects associated with development
throughout life.

Training and development play an important role in the effectiveness of organizations and to
the experiences of people in work. Training has implication; for productivity, health and
safety at work and personal development. All organizations employing people need to train
and develop their staff. Most organizations are cognizant of this requirement and invest effort
and other resources in training and development. Such investment can take the form of
employing specialist training and development staff and paying salaries to staff undergoing
training and development. Investment in training and development entails obtaining and
maintaining space and equipment. It also means that operational personnel, employed in the
organization's main business functions, such as production, maintenance, sales, marketing
and management support, must also direct their attention and effort from time to time towards
supporting training development and delivery. This means they are required to give less
attention to activities that are obviously more productive in terms of the organization's main
business. However, investment in training and development is generally regarded as good
management practice to maintain appropriate expertise now and in the future.

This research focuses on how training and development can add value to employee
performance in United Bank for Africa Plc., Lagos, Nigeria: Training is concerned with
imparting developing specific skills for a particular purpose. Training is the act of increasing
the skills of an employee for doing a particular job. It is the process of learning a sequence of
programmed behavior. In earlier practice, training programmes focused more on preparation
for improved performance in a particular job. Most of these trainees are usually selected from
operative levels like mechanics, machines operators and other kinds of skilled workers.

1.1.2 Employees' Performance

There is a need in every organization to enhance the job performance of the employees. The
implementation of training and development are one of the major steps that most companies
need to enhance employee performance. With organization having better trained and
developed employees organizations are able to avoid wasteful spending and improved
performance.

In today’s environment employees or staffs are increasingly demanding change, choice,
flexibility, as well as variety in their work. The value of the organization increases with better
trained employees and also employees trained properly are highly motivated and have a sense
of responsibility as captivating the organization as their own.

Employee performance depends on various factors, but tile most important factor of
employee performance is training. Training is important to enhance the capabilities of
employees. Employees who have more on the job experience have better performance
because there is an increase in the both skills & competencies because of more on the job
experience. Organizational performance depends· on the employee performance because
human resource capital of organization plays an important role in the growth and the
organizational performance. So. to improve the organizational performance and subsequently
employee performance, training is given to the employee if the organization. Thus the
purpose of this study is to show the impact of training and the design of training on the
employee performance. Training and development increases the employee performance
(Iftikhar Ahmad and Siraj-ud-din, 2009). Amisano (4010) said that employee performance is
the important factor and the building block which increases the performance of the overall
organization. Employee performance depends on many factors like job satisfaction,
knowledge and management but that there is a relationship between training and
performance. This shows that employee performance is important for the performance of the
organization and that training and development is beneficial for the employee.

1.1.3 Training and Development and Employees' Performance

Training and development play an important role in the effectiveness of organizations and to
the experiences of people in work Training has implication» for productivity, health and
safety at work and personal development. All organizations employing people need to train
and develop their staff; most organizations are cognizant of this requirement and invest effort
and other resources in training and development. Such investment' can take the form of
employing specialist training and development staff and paying salaries to staff undergoing
training and development. Investment in training and development entails obtaining and
maintaining space and equipment It also means that operational personnel, employed in the
organization's main business functions, such as production, maintenance, sales, marketing
and management support, must also direct their attention and effort from time to time towards
supporting training development and delivery. Investment in training and development is
generally regarded as good management practice to maintain appropriate expertise now and
in the, future.

Training and development fosters the initiative and creativity of employees and help to
prevent manpower obsolescence, which may be due to age, attitude or the inability of a
person to adapt him or herself to technological changes". According, to Obisi (2001) training is a process through which the skills, talent and knowledge of an employee is enhanced and increased. He argued that training should take place only when the need and objectives for
such training have been identified. Scott, Clothier and Spriege (1977) agreed that training is
the corner-stone of sound management, for it makes employees more effective and
productive. They argued that training is actively and intimately connected with all the
personnel and managerial activities. It would be difficult for a new employee to grow on the
job and become a manager .without adequate training ant: development. According to
Mamoria (1995) training is a practical and vital necessity because it enables employees to
develop and rise within the organization and increase their market value, earning power and
job security. Mamoria explained that training helps to mould employees' attitudes and help
them to contribute meaningfully to the organization. The organization benefits because of
enhanced performance of employees. He further stated that a well trained employee would
make a better and economic us~ of materials and equipment which would go a long way to
minimizing wastages.

According to Ohabunwa (1999) if organizations train their employees very well, managers
and superiors would have the confidence to delegate authority to their subordinates but when subordinates are not properly trained, it would be difficult for authority to be delegated to
them by their superiors.

1.2       Statement of the Problem

The major problem that prompted this research can be channeled on the reasons why
organizations conduct an employee training sessions for her employees. When organizations
start experiencing devastating stage in their operations, it shows that such organization needs
to develop the employee training within the framework of a comprehensive, on-going, and
consistent employee training program. These are the 1 i kely problems which most
organizations experience in the organizations.

1.3       Aim and Objectives of the Study

The overall objective of this study is to look generally Oil the impact of training and
development on employee's performance with a particular reference to the organization of
study. The objectives among others include the following:

  1. To determine the inf1uence of human resources training and development in the
    operation of the bank.
  2. To find out whether staff of the bank see training and development programme as
    motivating and mean of job enrichment and satisfaction
  3. To determine whether there is any relationship between labor turnover and
    availability of training and development opportunities in bank.
  4. To ascertain if the negative attitude of management and supervisors on training and
    development of their sub-ordinates promote unprecedented labor turnover
  5. To make recommendation where necessary to banks in order to make more
    meaningful its human resource training and development

1.4       Relevant Research Questions

This study shall address the following research question:

  1. How effective is the human resources training and development in the operation of
    the bank?
  2. Can training and development programme be seen as motivating and means of job
    enrichment and satisfaction?
  3. To what extent can work performance before and after training course be evaluated?
  4. Can negative attitude of management and supervisors on training and development of
    their sub-ordinates promote unprecedented labor turnover?

1.5       Relevant Research Hypothesis

The following hypothesis was formulated for the study:

HI: Human Resource Training and Development has significant effect on Employees'
Performance.

H2: Training and development program is motivating and means of enriching employees
performance.

 

1.6       Significance of the Study

The development of any organization depends on the employees. For employee's
performance, training and development assumes great significance.  This study should be of immense assistance to business students, business practitioners, systems designers and indeed all persons who are concerned about the proper informational input into training and development processes.

By bringing into focus the state of the art in the literature, it is also going to be of assistance
to lecturers. The service sector, as earlier indicated arc very important to the organization of
this country, therefore, since this is assumed to be a thorough study of training and
development in this sector, it will reveal its level of management efficiency and effectiveness.
And this knowledge will be vital to both the government and owners of industries.
Furthermore, it will provide a model for an efficient and effective training and development, which will, assists managers in this sector.

This research work will be important to the company concerned i.e. United Bank for Africa
plc, government institution and the general public. The importance of this research work can
be viewed from three angles that:

1.      From the importance to the company concerned

2.      From the importance to the individual concerned (i.e. the employee) and

3.      From the importance to the society at large.


 

1.6.1 Importance to the Company Concerned

Training and development applies not only to new employees but also to experienced people
as well. It can help employees increase their level of performance and hence increase
productivity which invariably leads to increase in profit for the industry concerned. It will
help the management of the company to identify training needs of their workers.

1.6.2 Importance to the Individual

Training and development are also important to the individual ill that it would help him/her to
possess useful skills, which enhance his/her value to the employer and increase his/her job security.

Training may also qualify employer for promotion which increase their pay.

1.6.3 Importance to the Society At Large

Training leads to increase in productivity and thereby serving as tools for economic
development in the country. Hence, it contributes to the increase ii~ the standard of living,

1.7       Scope of the Study

The scope of study is exclusively restricted to United Bank for Africa PIc, Marina, Lagos.
However, it should not be misconceived that the study has no relevance to other
organizations in Nigeria they are bound to face such problem considering the globalized
nature of organizational environment.

The present study is limited to many aspects. Providing information about Training and
Development is the outcome of various variables. It is not possible to take into consideration
each and every criterion in this study.

It will be very difficult to carry out the study of this nature m virtually every company in
Nigeria (both public and private sector) in Nigeria.  Hence, the researcher decided {o enter his study on training and development and employees performance on the staff of United Bank for Africa Plc. Lagos. It covers all the various employees in the organization ranging from executive management, middle management, supervisors and the rest of the workers in the organization.

1.8       Definition of Terms Management:

The act of getting things done with the use of other people's efforts,

Company:

A formal business set out to make maximum profit and other related objectives, like social
and human objectives

Objectives:

These are considered to be aims set out to be obtained by a person or organization within a
specific time.

Policies:

They are set of rules and regulations that regulate the behavior of workers.

Training:

Training involves an expert working with learners to transfer to them certain areas of
knowledge or skills to improve in their current jobs.

Development:

Development is a broad, on-going multi-faceted set of activities (training activities among
them) to bring someone or an organization up to another threshold of performance, often to
perform some job or new role in the future.

Organization:

This is an association of employees, working collectively towards common goals of the firm.
Staff Organization

. A structural arrangement provided for advisory or technical service to facilitate line function
in an operating organization.

Turnover:

This is the number of times a cycle occurs in a given' time period; e.g. the ration of actual
monthly, credit sales to the average daily volume of outstanding accounts receivable.


 

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