Effects of Training on Organizational Performance

Abstract

Training is one of the Human Resources functions of the organization. When employees are recruited into the organization, they may not come with all the required skill set to discharge fully their roles in the organization. Hence, the one to equip such new employees with relevant skill set for the good of the organization. Also, the business world is very dynamic and ever changing. Organizations keep innovating making it imperative or organizations to keep training and learning. The rate technological advancement has made it almost impossible for any forward looking organization not to flow with the competition is cut throat. Customers keeping raising expectations which every bank which want to remain in business will necessarily have to meet. The Customer-facing employees will need the right skills, knowledge and attitude to manage the customers with their high expectation. The right skill, knowledge and attitude can be acquired through training. The research attempts to find out the impact which training has employee performance bearing in mind that the aggregate of individual performance will culminate to organizational performance. The study considered the microfinance bank sub-sector from which three banks were selected. Data was collected from 304 respondents who were drawn using Taro Yamane sample size determination technique through structured questionnaire. The data collected was subjected to both descriptive and inferential techniques were used to test formulated hypotheses. The study showed that employee skill, knowledge and ability gained from training has significant effect on productivity. Further findings reveal that training has effect on employee commitment to the organization. The conclusion is that training enhances employee performance as well as employee commitment to the organization. It is therefore, recommended that microfinance banks and all organization should take more active interest in the training of its employees.