Impact of Training and

Development on
Organizational Performance

MEF Sec-B

Group Members:

Hafeez Alam
Saad Ali Farooqi
Qazi Farhan
Syed Hamza Ali Submitted to:
Syed Muhammad Taqi Naqvi Mrs. Mussarat Adnan
Running Head: Impact of Training & Development on Organizational Performance

Acknowledgement

It is with great pleasure that I acknowledge the support of my Human

Resource Management course instructor, Dr. Musarrat Adnan. This research
report would not be completed without her guidance, from the very first step
of topic selection to the last step of compiling the complete report. After a
thorough study, we had finalized this topic, and have come up with a
methodology for the basis of our future research. The results and findings
sections of this report would be completed in future after the whole research
process has been done. At this point of time, these sections are partially
complete might not reflect the clear image of the research findings.

Group Members:

Hafeez Alam
Saad Ali Farooqui
Qazi Farhan
Syed Hamza Ali
Syed Muhammad Taqi Naqvi

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Running Head: Impact of Training & Development on Organizational Performance

S.NO. CONTENTS PG. NO

01 Acknowledgement 02
02 Abstract 04
03 Introduction 05
04 Research objective 07
05 Literature review 07
06 Data Collection Methods Used 09
07 Reasons for Data Collection Method Used 09

08 Questionnaire Designed and Administration 10

09 Objectives of the Study 10

10 Significance of the Study 11

11 Limitations of the Study 11

12 Conclusion 14

13 Bibliography 15

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Running Head: Impact of Training & Development on Organizational Performance

Abstract:

Preparing and Development, On the Job Training, Training Design and Delivery style are four
of the most essential perspectives in authoritative investigations. The concentration of
current examination is to comprehend the influence of Training and Development, On the Job
Training, Training Design and Delivery style on Hierarchical execution. The foundation of this
investigation is the optional information contained thorough writing audit. Four Hypotheses
are created to see the Impact of all the free factors on the general Organizational
Performance. The Hypotheses demonstrate that all these have noteworthy influence on
Organizational Performance. These Hypotheses originated from the writing survey and we
have additionally demonstrated them with the assistance of writing survey. Results
demonstrate that Training and Development, On the Employment Training, Training Design
and Delivery style have noteworthy effect on Organizational Performance and all these have
emphatically influence the Organizational Performance. It implies it expands the in general
authoritative execution. We additionally demonstrate our Hypothesis through experimental
information. Be that as it may, comes about are firmly in light of the writing audit.

Introduction:
Employees are the most valuable asset of every company as they can make
or break a company’s reputation and can adversely affect profitability.
Employees often are responsible for the great bulk of necessary work to be

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Running Head: Impact of Training & Development on Organizational Performance

done as well as customer satisfaction and the quality of products and events.
Without proper training, employees both new and current do not receive
the information and develop the skill sets necessary for accomplishing their
tasks at their maximum potential. Employees who undergo proper training
tend to keep their jobs longer than those who do not.

Training is a necessity in the workplace. Without it, employees don't have a

firm grasp on their responsibilities or duties .Employee training refers to
programs that provide workers with information, new skills, or professional
development opportunities

Training has the distinct role in the achievement of an organizational goal by

incorporating the interests of organization and the workforce (Stone, 2002).
Now a days 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. (Stone, 2002)

(Khan & Afaq, 2008) Training also has impact on the return on investment
(Richard Chang Associates, INC.). 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 &
Siraj , 2009)

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Running Head: Impact of Training & Development on Organizational 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 (T.Rosti Jr & Frank, 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”, (M.A & Nickels
, 2006). 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 employee’s
development and the employee development encourage self-fulfilling skills
and abilities of employee, decreased operational costs, limits organizational
liabilities and changing goals & objectives.

Research Objectives:
This research aims to answer the following research questions:
 Do trained employees tend to perform better than non-trained
employees?

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Running Head: Impact of Training & Development on Organizational Performance

 Do private and public sectors organizations need training to improve

productivity?
 Professionals of various fields need training to develop and grow in
their professions. How honestly do organizations believe in this?
 Does the impact of non-trained employees effect the organizations’
atmosphere?

Literature Review:
Effective training and development programs aimed at improving the
employees’ performance. Training refers to bridging the gap between the
current performance and the standard desired performance. Training could
be given through different methods such as on the coaching and mentoring,
peer’s cooperation and participation by the subordinates. This team work
enable employees to actively participate on the job and produces better
performance, hence improving organizational performance.

Human Resource Management and Training For any company to operate

successfully, it must have materials, money, supplies, equipment, ideas
regarding the good or services to offer the individuals who may utilize it
outputs and lastly people, which is the human resource, to run the company.
The proper management of individuals at work is Human Resource
Management, and it has developed to be a main activity in many
organizations and is the concentration for a wide - ranging deliberation
concerning the nature of the contemporary business relationships.

One of the major components in the coordination and management of work

in an organization is the management of human resource. (Shen, 2004),
referred to Human Resource Management as including all of management
activities and decision, that influence the relationship between an
organization and its employees which are the HR. Generally, management
settles on essential choices day after day that influence this relationship.
(Shen, 2004)

(McDowall & Sauders, 2010) Argues that the acknowledgment of the

importance of training as of late has been intensely influenced by the
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Running Head: Impact of Training & Development on Organizational Performance

intensification of rivalry and the relative achievement of organizations, as

investment in employees’ development is extensively emphasized. They
further argued that innovative improvements and hierarchical change have
progressively driven a few businesses to the 5 realization that achievements
depend on the skills and abilities of their workers, and this implies significant
and persistent investment in training and development.

(Beardwell & Holden, 1993), viewed that Human Resource Management

concept for example, responsibility to the organization and the growth in the
quality development have driven senior management groups to understand
the increased importance of training, employee development and long -
term education.

A concept of this nature requires not only careful planning, but a more
emphasis on employee development. To Krietner (1995), no matter how
carefully employees are screened, typically, a gap remains between what the
employee does know and how they should know it. An organization
therefore, desiring to gain the competitive edge in its departments, will need
extensive labor and effective training of its human resource.

(Cole, 2002), mentioned in his book Personnel Human Resource

Management, that training is more of a learning activity to acquire better
skills and knowledge needed to perform a task. The idea of training is the
need for a greater productivity and safety in the operation of specific
equipment or the need for an effective sales force, to mention a few. To
come up with the desired knowledge, skills and abilities from employees to
perform well at their job side, requires proper training programs that may
likewise have an impact on employee motivation and commitment.
Employees can either build or break their company's reputation as well as
profitability. Moreover, they oversee most of the activities which can
influence customer fulfillment, the nature of the product and event.

Data Collection Method Used:

Data is defined as all the facts and figures that are arranged in an orderly
manner to make sense. Data from this research work was collected from two
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Running Head: Impact of Training & Development on Organizational Performance

main sources; the primary and the secondary sources. Primary data is first
hand data collected directly the field and have not been used by anyone.
Such data can be obtained using questionnaire, observation and interview.
Meanwhile, secondary data are those items that have been originally
collected and worked by another research which the present researcher may
need for her research work. It is second hand in nature and less reliable. This
type of data can be collected using newspapers, textbooks, journals,
magazines and even the internet.

Reasons for Data Collection Method Used:

 The methods used, helped the researcher to effectively consider
training needs of individual workers and how it affects organizational
performance which constitute one of the reasons of using the
methods.

 It was a fast and easy way of collecting data and it is relatively cheap.
Information were mostly from reliable sources.

 To help the researcher in gathering data that could not be easily

obtained if observation was made possible. The researcher had access
to most of the workers in the various departments and with interview
as a method of data collection; it enabled the researcher to speak face
– to – face with her respondent. Thus, leading to accurate information
because observation helps the researcher to see and perceive the
behavior of the respondent.

Another reason is to serve as a source of reference for future scholars who

wish to take on this topic for further research.

Questionnaire Designed and Administration:

A portion of the organized talked with questions were composed such that
the respondent needed to answer either with a yes or a no, to questions
which they needed to compose their feeling in the matter of what they
consider the inquiries. These polls offered reactions to the inquiries and the
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Running Head: Impact of Training & Development on Organizational Performance

appropriate responses were regulated by some chose individuals in every

division. By perception, the scientist had in brain to see the past records of
execution and watch whether the specialists stick point on any factor that
will enhance their execution which may prompt an expansion in the general
execution of the association.

Objectives of the Study:

The main objective of the study is to investigate the effect of employee
training on organizational performance with focus on the processes and
procedures of selection employees for training. However, specific objectives
of the study are as follows:

 To ascertain the extent to which selection procedure of employee for

training affects organizational productivity;

 To determine the extent of effect of training design on employee

productivity;

 To ascertain the extent to which training delivery style affects employee

productivity;

 To find out the relationship between employee perceptions of training and

organizational productivity; and

 To determine the extent to which employee training affects organizational

performance.

Significance of the Study:

The significance of this study cannot be over-emphasized and can be viewed
from the following perspectives.

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Running Head: Impact of Training & Development on Organizational Performance

 The study will help the top management in taking strategic decision
that affect training and development for the overall growth of the
industry.

 Members of Staff of the two manufacturing industries to be used as

case study will have adequate knowledge as to the importance of
training and why it is necessary that they are trained from time to
time.

 The study will help the Human Resource Department in proper

planning and execution of training and development programmers.

 Future researchers will also find this work very useful as reference
materials for further studies.

Limitations of the Study:

The following constraints were encountered in the course of this work.

 Lack of reliable data: The Respondents’ unwillingness to give out

available and reliable data was major constrain in the course of the
study.

 Dearth of Research materials: The researcher was constrained in the

search of research materials. Most current books and journals on the
related area are not free, and so the researchers was limited to those
materials she could afford.

 Measure used to collect data: Secondary data would have been more
appropriate for the post-evaluation analysis, but because it was
difficult to separate and link percentage (%) increase in turnover to
employee training, primary data was used.

 Self-reported data: Self-reported data was a major limitation of the

study, because it rarely can be independently verified. The researcher
had to take what the respondents said at face value. Nonetheless, with
available data and judicious use of the limited resources, reasonable

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Running Head: Impact of Training & Development on Organizational Performance

analysis was carried out to ensure that research findings add up to the
body of knowledge.

According to Mathis and Jackson (2004), the systematic training process is

made up of four phases namely, assessment, design, delivery and evaluation.

 Training needs assessment

Training is designed to help the organization accomplish its
objectives. Consequently, assessing organizational training needs
represents the diagnostic phase of setting training objectives. The
assessment phase considers employee and organizational
performance issues to determine if training can help. When doing
the training needs assessment, it is important to consider non-
training factors such as compensations, organization structure, job
design, and physical work settings. Mathis and Jackson (2004)
further note that organizational analyses, job analyses and
individual analyses could be used to identify training needs. After
training needs have been identified using appropriate analyses,
then training objectives and priorities must be established by
identifying a skill gap or training need, which is the distance
between where an organization is with it employee capabilities and
where it needs to be. Training objectives and priorities are set to
close the gap.

 Training Design
Once training objectives have been identified, the next stage is to
develop the training design. Training must be designed to address
the assessed needs. Effective training design considers learning
concepts, legal issues, and different approaches to training.

 Training Delivery
After the development of the training design, then begins the
actual delivery of training. It is generally recommended that the
training be pilot-tested or conducted on a trial basis in order to
ensure that the training meets the needs identified.

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Running Head: Impact of Training & Development on Organizational Performance

 Evaluation of Training
This stage compares the post-training results to the objectives
expected by managers, trainers and trainees. Often times, training
is conducted with little thought of measuring and evaluating it later
to see how well it worked. Mathis and Jackson (2004) suggest that
because training is both time-consuming and costly, it is imperative
that there is evaluation after training.

Conclusion:

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Running Head: Impact of Training & Development on Organizational Performance

The reason for investigating the impact of employee training and

development on organizational performance was motivated by the
observation that some organizations do not seem to care about improving
the capacity of their workers; they instead frown at and punish any
weaknesses of workers.

Based on the researcher’s findings, training and development is a call for

concern in today’s growing society because if performances of the
employees are not good enough, it will affect the organization, being an
important way of overcoming human resource personnel to ascertain the
strength and deficiencies of employees. They may take the necessary action
or corrective measures thereby altering work attitude necessary in attaining
the goals and objectives of the organization. It is an undeniable fact that in
recent times many organizations have come to realization the importance of
the role of training and development as it increases the organization staff
efficiency, skills and productivity.

To reap the full benefit of training initiatives as well as development

programs, the researcher recommends thus: training needs should be done
more professionally in conjunction with individuals involved together with
human resource personnel. Everyone should agree what the training is
lacking and what the training is lacking for instance; they need to identify
what is lacking and what attitudes need that needs to be changed. Also,
workers being employed should be those who at least have a pre-knowledge
of technology so not to shy away from educative programs due to ignorance
or shame.

Lastly, seminars are normally conducted but to a few or limited number of

persons, usually senior officials. The researcher thus, recommends the
widening of category of workers to attend these seminars, changing the
external pressure they face and it will help workers to feel a sense of
belonging and importance to the organization.

Bibliography

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Running Head: Impact of Training & Development on Organizational Performance

Beardwell, N., & Holden, B. (1993). Managing for success 2nd Edition.

Cole, J. A. (2002). Personnel and Human Resource Management Practice. 5th

Edition.

Iftikhar, A., & Siraj , U. (2009). Evaluating Training and Development.

Gomal Medical College and University.

Khan, A., & Afaq, F. (2008). Case of Pearl Continental hotels in Pakistan.
Relationship of training with Employees Performance in Hoteling
Industry.

M.A, N., & Nickels , D. M. (2006, May 22). Special report: Training and
Development. Retrieved from
Roger Kaufman-Florida State University: www.workforce.com

McDowall, & Sauders, A. (2010). UK Manager’s Conceptions of Training

and Development. Journal of European Industrial Training(34), 609-
630.

Shen, J. (2004). International Training and Management Development:

Theory and Reality: A Conceptual Study. Journal of Management
Development(24), 656-666.

Stone, R. J. (2002). Human Resource Management. Jhon Wiley & Sons, 2nd
Edition.

T.Rosti Jr, R., & Frank, S. (1998). A study of the impact of training in a
management development program based on 360 feedbacks.

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