CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
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). Now a day’s 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 employee performance depends on various factors. But the most important factor of employee performance is training. Training is important to enhance the capabilities of employees. The 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 (Fakhar Ul Afaq, Anwar Khan).Training also has impact on the return on investment (Richard Chang Associates, INC.). Training is effort initiated by an organization to foster learning among its workers, and development is effort that is oriented more towards broadening an individual’s skills for the future responsibility (George & Scott, 2012). Training and development are a continuous effort designed to improve employees’ competence and organize performance as a goal to improve on the employees’ capacity and performance. Human Resource Management has played a significant role in the economic development of most developed countries like Britain America and Japan. In a developing country like Cameroon, with its rich natural resources and financial support, one can also experience such economic success if the appropriate attention is given to the development and training of her human resources. Every aspects and activities in an organization involves people. For instance, a manager will not be successful if he has subordinates who are not well equipped with skills, knowledge, ability, and competence (SKAC). To run an organization, be it big or small, requires staffing the organization with efficient personnel. Specific job skills, ability, knowledge and competence needed in the workplace are not efficiently taught `in the formal education. As such, most employees need extensive training to ensure the necessary SKAC to bring out substantive contribution towards the company’s growth. For employees to be flexible and effective in their job, they need to acquire and develop knowledge and skill, and for them to believe that they are valued by the organization they work for, then they need to see valuable signs of management commitments to their training needs. Each new employee must be properly trained not only to develop technical skills, but to make them an integral part of the organization. Training and development is an aspect that must be faced by every organization, and its major aim is to improve the employees’ competencies such that the organization can maximize effectiveness and efficiency of their human resources. It can be an advantage for an organization if they win the “hearts and minds” of their workers, getting them to identify with the organization (Armstrong, 2009). For workers to be equipped to perform well there must be an investment in the training processes. These processes are part of the entire human resource management approach which results in employees being motivated to perform. However, training vary from organization to organization in relation to the quality and quantity of training factors, which may include: the degree of external environment change, the degree of change in the internal environment, current suitable skills in the existing work force and the level to which the management see training as a motivating factor in the workplace, (Cole, 2002). Several companies address their needs for training in an impromptu and indiscriminate way, training in such companies are pretty much impromptu and unsystematic. Different companies however begin distinguishing their training needs, then outline and execute training exercises in a normal way, lastly evaluate after effects of the training. The 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 the employee performance, training is given to the employee of 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 & development increase the employee performance like the researcher said in his research that training & development is an important activity to increase the performance of health sector organization (Iftikhar Ahmad and Siraj-ud-din, 2009).Another researcher said that employee performance is the important factor and the building block which increases the performance of overall organization(Qaiser Abbas and Sara Yaqoob).Employee performance depends on many factors like job satisfaction, knowledge and management but there is relationship between training and performance (Chris Amisano,2010).This shows that employee performance is important for the performance of the organization and the and the training & and development is beneficial for the employee to improve its performance. Thus the purpose of this study is to show the impact training & development on the employee performance. The main objective of our study is how the training increases the employee performance. A researcher said that training increase or develops the managerial skills (Robart T.Rosti Jr, Frank shipper, 1998). Despite focusing on efficiency and cost control the spending on training should increase because organization get more efficiency , effectiveness out of the training and development (workforce special report, 2006) .This shows that training increase the efficiency and the effectiveness of the organization. “I think people are talking more about performance and results and consequences. They are not necessarily doing more about it”, (Roger Kaufman Florida State University).From this it is clear that training and development is the important factor. So the significance of our study is that the training improves the organization performance. Training is important for the employees development and the employee development encourage self-fulfilling skills and abilities of employee, decreased operational costs, limits organizational liabilities and changing goals & objectives (Donald Nickels,M.A,2009).
1.2 STATEMENT OF THE PROBLEM
Training and development play a vital role in any organization today. The AIRTEL mobile company is one of the fastest growing sectors of the global economy. It is also among the top-job creating sectors because its labour intensive nature and the significant multiplier effect on employment in other related sectors. There are various forms of training carried out at AIRTEL mobile company, this study however seeks to examine how the various training has helped in developing staffs and also improving their performance on the job. Debra and Ofori (2001) explained that despite the increasing effects on training of organizational employees, there is still limited literature on human resource development issues in developing countries. Despite the fact that training and development is well planned and systematic in AIRTEL mobile company, it still have issues of employees still not performing up to standard operating procedure in the work environment. It was observed that there is tension in organizations resulting from employees’ poor mastery of some responsibilities. Some of the weaknesses of such employees are often not well handled, resulting in sanctions, demotion, transfer, or dismissals that instead cause social tension at work. The researcher becomes interested in finding out just how seriously organizations consider training, and the effects it has on performance.
1.3 AIMS OF THE STUDY
The major purpose of this study is to examine the importance of training and development of organizational performance. Other general objectives of the study are:
1.4 RESEARCH QUESTIONS
1.5 RESEARCH HYPOTHESES
Hypothesis 1
H0: There is no significant impact of training and development on organizational performance.
H1: There is a significant impact of training and development on organizational performance.
Hypothesis 2
H0: Training and development has no significant relationship with organizational performances.
H1: Training and development has a significant relationship with organizational performances.
1.6 SIGNIFICANCE OF THE STUDY
The findings would enable effective management of employees towards achieving organizational goals. Training becomes inevitable the moment an organization realizes the need for improvement and expansion in the job. The importance of this study also behoves the company to train and develop its workers for the best quality of work to be relevant in the scheme of globalization. It will also evaluate aspects of the recruitment, selection and training process, which bear strong relevance to corporate image, productivity efficiency and morals. For the management of Airtel Mobile Company, this study will serve as a benefit to the quality of ‘work, life of the employees will also reciprocate with increase performances on the job.
This study will also be relevant to the human resource development department in the formulation of policies relating to training and development of personnel and for the government, to ensure adequate training and know-how to improve the economy as a whole.
The study becomes necessary because many organizations in this contemporary world are striving to gain competitive edge and there is no way this can be achieved without increasing employees' competencies, capabilities, skills etc through adequate training designs. However, the study results will help the management to identify the influence of training on workers performance, hence determine the areas where improvements through training can be done. It will also help the management in planning for the development and implementation of effective and efficient training needs that will lead to increased performance. It will also be of benefit for policy makers in various forms of business organization. It will be of immense guide to future researchers who intends to exploit and understand further concepts of training as a managerial tool to enhance Performance in an organization.
1.7 SCOPE OF THE STUDY
The study is based on the importance of training and development of organizational performance, a case study of Airtel Mobile Company, Lagos state.
1.8 LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 DEFINITION OF TERMS
Human Resource Management: Is the way organizations manage their staff and help them to develop (McCourt & Eldridge 2015) in order to be able to execute organizations’ missions and goals successfully.
Human Resource Development: Is the integration of individual, career and organization development roles in order to achieve maximum productivity, quality, opportunity and fulfilment of organizations members as they work to accomplish the goals of the organization (Pace, Smith & Mills 2009).
Training: It refers to learning activities carried on for the primary purpose of enabling members of an organization acquire and apply the knowledge, skills, abilities, and attitudes needed by a particular job.
Development: It is a broad ongoing multi-faceted set of activities, which covers not only activities/skills which improve job performance, but also those activities which bring about growth of the personality, help individuals progress toward maturity and actualization of their potential.
Organization: Monday, (1990) defined organization as “two or more people working together in a co-coordinated manner to achieve group result”. Organization is further defined in Encyclopedia Britanica (1986) as an arrangement of individuals or groups into a coherent whole, with complex of function interrelationship and a system of overall administration.
Performance: These are the measurable outcomes accomplishment valued by the work done.
Organization Effectiveness: Mondy et al (1990) defined it as the degree to which an organization produces the intended or desired result.
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