Training and Development impact on Organizational Performance: Empirical Evidence from Oil and Gas Sector of Pakistan

Abstract

The study objective is to investigate the relationship between the training and development strategies and its impact on organizational performance. To quantify this relationship, primary data was collected. The regression analysis was done on the employees of oil and gas sector of Pakistan. The finding of the study revealed the situation of training and development in Pakistan and showed that majority of the employees satisfied with the strategic TD Niazi, 2011). Performance of an organization is defined as how effective and efficient managers use organizational resources to satisfy customers and achieve organizational goals and objectives. Ideally, the more employees are trained and are satisfied with their work and environmental conditions, the more they can help enhance their organizations' performance. The resource based view theory supported that any training designed for the organization is based on the creation of values and enhancing the capabilities for continued organization performance (Barney, 1991). In Pakistan the recent changes in the policies of trades and the globalization surrounded by fierce competition, the oil and gas sector being the largest distributor in GDP renewing and re-emphasizing their focus on training and development. There is continues hike in the demand of oil and gas in Pakistan being a developing country. Problem statement In this scenario, this study sought to analyze the impact of employee training and development on the oil and gas sector performance. Objectives of the study The objective if the study is to check the impact of training and development on the organizational performance particularly in the oil and gas sector of Pakistan. The oil and gas sector was selected as being the major industry acts as the backbone of the Pakistan's economy where there is much opportunity of foreign investment. Applied aspects The significance of the study is broadly classified in to two parts. In practical HRM the study will help the managers to understand the impact of training and development on employees and to make policies accordingly. Whereas at theoretical level, it helps to design policies and strategies about training and development of employees, which ultimately effect the organizational performance. The data collected from the oil and gas sector of Pakistan which leads towards developing understanding of oil and gas sector performance.