Effect Of Human Resource Training And Development On Employee Performance

Project and Seminar Material for Industrial Relations and Personnel Management

Effect Of Human Resource Training And Development On Employee Performance

Chapter One


1.0 Background To The Study

Business is becoming more complex and human elements remain an indispensable component of its survival. Training is a sort of investment from which an organization expect some positive returns. It involves the development or modification of behaviour of employees in such a way that they become more effective at their duty post.

Flippo (1980) said that when employees have been recruited, selected and inducted, such employees must be developed to fit the job and the organization since no one is perfectly fit at the time of hiring. Soetan (1995) also buttressed this point when he said that training is always necessary when requisite skills, attitude and knowledge are either inadequate or completely lacking and when performance deficiencies that can be eliminated through training are identified.

However, training is often aimed at increasing productivity, improving quality of work, raise moral as well as development of new skills, knowledge and attitude. While development on the other hand, is a hand in a learning activity which is directed toward future rather than present needs and which is concerned more with career growth than immediate performance. The focus of development tends to be future manpower requirement and other growth needs of individual in the workplace.

Training and development are not synonymous. Training is the process of improving job behaviour of an employee in the immediate environment while development is future oriented often geared toward preparing an employee for greater responsibilities in the future.

Effective management of change calls for a dynamic human resources development policy to ensure that each staff in an organization possesses requisite knowledge, skills experience and expertise for the performance of his task.

The Administrative approach is based on the number of employees to be trained in one year at a particular period. The needs of the employee or the organization is not considered rather it depends on whose turn it is to go for training and the number of staff the budget can take care of. Through approach, the employees are sent to improve their welfare either financially, academically or otherwise. The employees are sent for training for their personal benefit. In organization, a measure of polices exist as the employee interact with one another here, training selection is based on either or some of the following lobbying, getting rid of some troublesome employees and projection of individual’s personal image, is known as “political approach”. The organization development approach is usually adopted where the management cadre in an organization are made to attend training programmes as a result of poor performance of a unit or division as the case may be.

In a systematic approach, the need of the employee is identified from the gap between his actual performance and the desired performance. Periodic performance appraisal can provide very useful data to identify these needs through systematic approach to training. It is preferred in profit oriented organization because it is often job related and is directed toward the achievement of organizational goals.

Training and development usually takes two forms namely:

  • In house training
  • Off house training

In-house training is usually carried out within the organization i.e. induction course, on-the-job training coaching programmes, etc. Here, the training is done in the normal work environment situation with the trainee using the actual tools, equipment and material that he/she will use when he/she is fully trained. Mccormick and Tiffin (1977) describe it as “catch as-cast-can” and on the other hand, off-house training takes place outside the organization, for instance management consultant and training institutions organized training programmes which employees attend as evaluation training. It decides whether training justifies it cost and whether it is doing what it sets out to do.

The main goal of training is to improve employee ability to perform specific tasks. Many organizations therefore spend a deal of time and money on training and development of their employees. However, management is worried about the effectiveness of training programmes in terms of contents, method usefulness and result. There are many approaches to training depending on the purpose it is expected to serve.

These are:

  • Administrative Approach
  • Welfare Approach
  • Political Approach
  • Organizational development Approach
  • Systematic Approach

Boydel, C. (1971) has suggested the following ten steps as constituting systematic training process.

  1. Identification of the occupation chosen as priority.
  2. Examination of the occupation chosen as priority
  3. Analysis of the occupation
  4. Specification, selection, and appraisal of the people to be training
  5. Setting training objectives
  6. Planning of the training programme
  7. Implementation of training programme
  8. Checking / assessment of the training

Budgeting for training can be described as a process for systematically relating expenditure of funds for training to accomplish its planned objectives. The main purpose of training budget is to have realistic estimates of funding necessary for the training services which are meant to be crucial to the achievement for organizational goal both in short term and long term basis. According to Douglas (1969), the step to follow in preparing a training budget are as follows.

  1. Assess the training needs of the organization
  2. Draw a training programme for the year
  3. Document the annual budget for the training schools or department
  4. The information
  5. The time to be spent on training
  6. The number of people to be trained
  7. The incidental expenses such as traveling expenses.

1.1 Statement Of Problem

One of the basic problems in any work environment is how to motivate people to work. In a modern society this is not an easy tasks, as many people derive only slight personal satisfaction from their jobs and enjoy little sense of accomplishment or creativity. A worker has certain personal expectations concerning the type and amount of reward he or she would receive for services rendered. The extent to which such expectations are met would presumably affect in large measure the inclination of the worker to continue at the current level of performance and indeed, might even ultimately affect the decision concerning whether to remain with the organization. Training development is predicated or workers machines and tool deficiencies. Wastages in industries owing to the fact that people are not well trained for a particular job, usually result low skilled man power.

It is necessary for managers to identify training needs before designing training programmes. Emphasis on buying sophisticated machines to replace human resources development, thereby leading to more concentration on machine instead of individual, lack of technical skills, interpersonal skill, or inability to assimilate the cultural values of the organization. The researcher has veered into finding out the reasons. Why embargoes are placed on equipment instead of human capital development

1.2 Purpose Of Study

The purpose of this study is to examine the effect or extent to which training motivates workers toward greater job performance in the banking industry. It also examines the training method being employed and will also examine what can be regarded as adequate manpower training and development on employees performance and how organization can improve employee performance beyond the scope of training and development.

1.3 Significance Of The Study

Many organizations spend a great deal of time and money on training and development of their employees, however the management of some companies are often worried about the effectiveness of such training and development programmes in terms of content, methods, usefulness and desired results. This research efforts would attempt to evaluate the impact of training and development on employees performance of a firm in the banking industry.

Secondly, there are chance of prevention of industries folding up if they have competent and well trained staff delivering improved and better services in line with the organization’s goal and objectivities. This will in turn enable our home made product and services to compete favourably with foreign products and services.

Training can result to improve job satisfaction as performance when training requirements are determined by analyzing the work to be done through the manpower resources available and the present and future environmental demand or organization.

All new employees, regardless of their previous training, education and experience, need to be introduced to their new employees’ work environmental and to be taught how to perform specific tasks. Moreover specific occasion, for training arise when job changes, and new skills must be introduced by advancing automatic.

As some employees respond to continuous training, they can progressively increase their value to organization and prepare themselves for promotion and continuous training can help employees to develop their ability to learn, adapt themselves to work methods, learning to use new kinds of equipments and adjusting to method changes in job content and work relationship.

Training programme also usually provide a job change designed to improve the quality of work life and the hope that the employees will reciprocate with training gives the employees a fair chance to better performance and avoids the frustrating experience of poor performance. Effective training and motivation therefore ensure the loyalty of employee and invariable, high productivity through the avoidance of wastages.

1.4 Objective Of The Study

The effect of human resources training and development on employees performance need to be examined and the extent to which training motivates workers towards greater job performance in the banking industry.

To identify how organization can improve employee performance beyond the scope of training and development.

And finally, this study will document relevant information which will improve the awareness of training and development in an organization through the manpower resources available and the present and future environmental demand or organization.

1.5 Research Questions

In this research, attempt shall be made to find answer to the following questions.

  1. Does training improve employee performance?
  2. Does training increases profitability?
  3. Does training encourage commitment?
  4. Does training serves as motivation?

1.6 Research Hypotheses

H1; Effective training and development would lead to employees performance

H2; Training and development of employee would serve as a motivator that would lead to efficiency in the workplace.

1.7 Scope Of Study

The bank under investigation, Guaranty Trust Bank has about 3,000 employees in the entire organization. It also has about 15 branches in Lagos. For easy management of the study used Opebi Allen Avenue Branch.

The study would examine other factors that are known to improve employees job performance such as motivation of staff in terms of monetary reward and fringe benefit etc.

1.8 Definition Of Terms

Training and development is all about growth of an organization. Training has been one of the greatest factors that makes an organization to achieve their growth, goals and objective performance. The word performance is all about the efforts carried out in an organization by the employee to make training and development contribute to performance. After every employee had been trained with high training, it will surely enable them to perform very well. In other word, training and development should lead to performance.

1.9 Operational / Definition Of Variables

For the purpose of this study, a number of concepts would feature prominently and attempts would be made to define them within the frame work of this project.


This is the systematic acquisition of skills, concepts or attitude that would result in improved performance in an organizational setting.

Training Needs:

This represent the gap between the kind of performance an employee has and the kind of performance which he is expected to have which can otherwise be bridged by systematic training.

1.10 Brief History Of Guaranty Trust Bank Plc

Guaranty Trust Bank Plc was incorporated as a limited liability company licensed to provide commercial and other banking services to the Nigerian public in 1990. The bank commenced operations in February 1991, and has since then grown to become one of the most respected and service focused banks in Nigeria.

Guaranty Trust Bank operates from over 160 business offices in Nigeria with several bank and non bank subsidiaries spread across Anglophone West Africa and the United Kingdom.

Five years later, in September 1996, Guaranty Trust Bank Plc became a publicly quoted company and won the Nigerian Stock Exchange Presidential Merit award that same year and subsequently in the years 2000, 2003, 2005, 2006, 2007 and 2008. In February 2002, the bank was granted a universal banking license and later appointed a check bank by the Central Bank of Nigeria (CBN) in 2003.

Guaranty Trust Bank undertook its second share offering in 2004 and successfully raised over N11bn from Nigerian investors to expand its operations and favourably compete satisfactorily poised to meet the N25bn minimum capital base for banks introduced by the Central Bank of Nigeria in 2005, as part of the consolidation exercise by the regulating body to sanities and strengthen Nigerian banks. Post-consolidation, Guaranty Trust Bank made a strategic decision to actively wrong word retail banking. A major rebranding exercise followed in June 2005, which saw the bank emerge with innovative, cutting edge service offerings, aggressive expansion strategies advertising policies and it’s now trademark vibrant orange.

In 2007, the bank entered the African business landscape history books as the first Nigerian Financial Institution to undertake a $350 million regulation Eurobond issue and a $750 million Global Depository receipts (GDR) offer. The listing of the GDRSs on the LSE in July that year made the bank the first Nigeria Company and African Bank to attain such a landmark achievement.

In December 2009, Guaranty Trust Bank once again set the pace by successfully completing the first tranche of its $200 million dollars corporate Bond – the first corporate bond in Nigeria for a very long while. Over the years, the bank has been a recipient of numerous accolades and commendations for exceptional service delivery, innovation, corporate governance, corporate social responsibility and management quality.

The bank has remained a learning organization, learning new ways to delight its customer-sweet on the counters, a hand umbrella on a rainy day, aesthetic, function premises and technology has always been a passion with management from its early days of operations until today, guaranty trust bank has utilized functional contemporary technology that has kept it ahead of the curve.

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