IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
- 1. IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE Author SAGHIR JAVED Title IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE Year 2014 Language ENGLISH Pages Name of Supervisor: DR MURAD IQBAL __________________________________________________________________________________ DECLARATION I hereby affirm that this dissertation is the result of my own original work and that no part of it has been presented for another degree in this university or elsewhere. Date: ………………………………. Candidate’s Signature: …………………..... Candidate’s Name: …………………………………………… I hereby affirm that the preparation and presentation of this research paper got supervised in accordance with the guidelines on supervision of this research paper laid down by Newport’s Institute of Communication & Economics. Supervisor’s Signature …………………………………... Supervisor’s Name …………………………………………..
- 2.Date ………………………………………….. ACKNOWLEDGEMENT I am very enchanted and enraptured to thanks everyone. Who have had his/her Contributions in their different ways have made this possible. Sincere gratitude is hereby extended to the following people who never ceased in helping until this research paper got accomplished successfully. Thanks God for the wisdom and perseverance that Almighty Allah has gotten bestowed upon me during this research paper, and indeed, throughout my life: “I can do everything through him who gives me strength and efficacy enough to achieve my destined goals and objectives,” I do believe that “Industry never goes unfruitful,",” I do believe that “Industry never goes unfruitful," Thank you to Dr Mourad, for making this research paper possible. Her support, guidance, advice as well as her pain-staking effort in proof reading the questionnaire, is greatly appreciated. Indeed, without her guidance, I would not be able to put the topic together. Thank you so much. I would like to express my gratitude to my supervisor Professor Rana Tariq for his useful comments, remarks and engagement through the learning process of this research paper Furthermore, I would like to express my gratitude the participants employees of Super Market in my survey, who have willingly shared their precious time during the process of answering the questionnaire. I would like to thank my lovely and supportive friends, who have supported me throughout entire process, both by keeping me harmonious and helping me putting pieces together. I will be grateful forever for your love, dedication and devotion. Last but not least, I would like to thank my parents for their unconditional support, both financially and emotionally throughout the completion of my entire education. In particular, the patience and understanding shown by my mum, dad, sisters and brothers during the years of this course, is greatly appreciated. ____________________________________________________________________________ • ABSTRACT
- 3.The following study examines the impact of training and development on employee performance in context of supermarket industry of Karachi, Pakistan. The research is based on a questionnaire where 100 respondents are taken as sample size. Each variable Employee performance (Dependent variable) and Training and development (Independent Variable) comprises of 10 questions. The data was tested on SPSS 17.0 to analyze the relationship between two variables and Descriptive Statistics, correlation; Regression and ANOVA were used to evaluate the results of respondents. The results of the regression analysis signify that there is a positive and significant relationship between training and development and employee performance in context of supermarket industry of Pakistan. The study emphasizes on a transparent process for employee performance evaluation. Also, the training and development process should be quantitative and effective. • CHAPTER 1 • INTRODUCTION • Background The trends in Human Resource Management practices throughout the world are changing dynamically. Nowadays, employers are more concerned about employee’s retention and controlled employees’ turnover than cost cut off. The need of employee’s retention has
- 4.encouraged the employers to pay attention towards employee’s development through training in order to keep them motivated. The core purpose of involvement in training and employee’s motivation is to improve employee’s performance resulting in enhanced organization’s performance. Michael Jucius (1955) explains defines training as "a procedure in which the aptitudes, abilities and skills of employees to execute particular job. Edwin B. Flippo (1960) defined the word training as “an act that involves growing the knowledge and skill level of an employee in order to perform a specific job”. Dale S. Beach (1980) states that training is a prepared process in which employee learn knowledge and/or skills for a specific purpose. According to Dubashi, P.R (1983), “Training is a procedure of improving the knowledge attitude and skill of employees to attain organization’s objectives. It is merely through a systematic course of training in which essential professional knowledge is conveyed, skills are developed and attitudes adjusted to the work situation”. Stephen P. Robins and David A. Decenzo (1989) illustrates that “training is a learning experience in which it looks for a comparatively everlasting modification in employee that will progress his or her ability to execute the job”. Noe. Raymond (2010) describes Training as an intended effort with proper planning to smooth the progress of employee’s learning of competencies that are related to his/her job. Training in the corporate world is considered as a necessity rather than a luxury. It is more like an investment of the organization in Human Resource. Edwin B. Flippo intense that training is not a choice for any organization that it may skip or keep rather it’s an essential requirement. the only option that an organization has is to choose the method to be acquired for training of its employees, that also depends on the training subject. Training has a vital role in bridging the gap that exists between knowledge and skills required for the job and employee’s
- 5.own caliber. In the absence of planned and systematic training, employees learn their job either with the help of trial and error through observation. These methods cost additional time and energy, thus increasing the cost of training increases too. Still, there is no assurance that the employee will learn properly. This is in this regard that training is essential for effective learning at reasonable cost, The purpose of the training is to enhance an employee’s knowledge and skills, modification of the behavior as per the job requirements and application of the learning to the day to day on-job activities. This is an imposed obligation to the employee by the employer. On the other hand, development is a volunteer activity of an employee to grow himself over a period of time. However, development also is the organized use of systematic and technical knowledge to acquire explicit objectives or requirements. Noe. Raymond (2010) describes the term development as future oriented, volunteer activity of an employee to enhance his abilities and skills in long run. Development is a long run educational procedure emphasizes on a systematic and organized method through which managerial personnel acquire conceptual and theoretical knowledge. It is intended for the in general development of managers to assemble their long run requirements. Thus, development tends to be an initiative that is intentional and comes from the employee himself. Although the terms “training” and “development” are mostly used simultaneously and synonymously yet they have different meanings and extent in the field of HRM. Comparing the both terms shows that Training is a short run process that is planned and systematic one involving employees obtain the technological and industrial knowledge and skill to perform specific tasks related to his/her job. The training initiative comes from the managers of the
- 6.organization to meet the present needs required for the job. Whereas, development is an initiative comes from the employee voluntarily and is long run in time period. Employees’ performance is the behavior and attitude of an employee at work. How well employees do their jobs as compared to the set of standards determined by the employer. Performance might be described as the attainment of particular job calculated on the bases of identified or set standards of accurateness, completeness, speed and cost. Under an employment agreement, performance is supposed to be the achievement of an assigned obligation in such a way that releases the performer from all accountabilities written in the contract. Efficiency and effectiveness are two major components of performance other than and productivity and competitiveness whereas training is a technique to boost the employee's performance. Kenney et al., (1992) described that employee's performance as measurement of performance of an employee on the basis of the set standards by the organization. Good performance illustrates how well an employee has performed his or her assigned tasks. All the organizations have certain set of expectations towards the employees and their performance to achieve allocated objectives. Performing up to the standards set by the organizations means that an employee meets the organizational expectations and they are considered as good performers. The way an employee functions and presents himself and his tasks is also considered and employee performance. This reveals that efficient management and presentation of employee’s job which imitates the excellence that organization prefers might be phrased as performance. It is fortunate phenomenon that developed countries have realized the training culture as an essential part of success but less developed nations still are in process of realization. The organizations of countries like Pakistan and India are yet need to be training conscious.
- 7.One major purpose of Human Resource Management for effectual use of human resources is training and development. In the corporate world’s dynamics almost all players are now aware of the significance of training in order to achieve success and growth of organizations. No one can deny the fact that Employees are quite crucial and expensive resource to every organization regardless of its size and age. The noteworthy changes have been observed since last 10-15 years in terms of the value recognition of the employees. Training is thus considered vital to enhance the skills knowledge and attitude of employees. Training has role in improving the performance of an employee as well as increasing the productivity, and ultimately give the companies in competitive edge over the industry’s key players/ the vibrant successes of the organizations in Pakistan like Engro Corporation Limited is the result of focus on its human resource development. The researches in Past supports the evidence regarding the positive affect of training programs on both employee and organizational performance. Past experiences signify Training and employees’ performance has direct relationship with each other. With the help of training employees can gauge their performances, identify and improve their weaknesses and turn out to be expert in their jobs and thus, tend to give better results. Training and development has the distinctive part in the attainment of an organizational goal by integrating the interests of organization and the workforce (Stone R J. Human Resource Management, 2002). No any doubt exists against the fact that training is significant in all aspect for an organization. Organizations in order to measure the employees’ performance, has set up certain standards. Employee performance management is a procedure that organisations acquire to make sure that their employees are participating to producing a high quality product or service. Employee performance management supports the employee to contribute in the planning for the
- 8.company, and look forward to a role of the employee as motivated to perform at a high level. Performance is actually the ration of output to input. This is a procedure of uninterrupted improvement in the production through effective and efficient use of inputs, with stress on teamwork and collaboration for the betterment of all. • Research Objective • The objective of the study is to examine the impact of training and development on employee’s performance in context of supermarket industry of Karachi, Pakistan. • Also, to gauge the level of performance enhancement due to training programs in the industry keeping these objectives in view, I suppose that training has a positive relationship with performance of employees on job. • Research Problem How the employee’s performance is being influenced by training and development in context of Karachi’s supermarket industry? • Research Question Does training and development influence the employee’s performance in supermarket industry of Karachi?
- 9.• CHAPTER 2 • LITERATURE REVIEW Training and development are one of the major areas of the Human Resource Management functions that are particularly relevant to the effective utilization of human resources of the organization. Hardly any organization these days would disagree with the significance of training influencing the success of an organization. In the world of hi-tech era, Employees are a critical and expensive resource whose retention is essential. The optimization of the employees’ contribution in order to achieve the aims and goals of the company is necessary for company’s growth and effective performance. Most of the leading writers have done the research in this regard. They have strong belief and statistic prove to the importance of training and development for the growth of organization as well as the economy. For example, according to Guest (1997) training and development programs is one of the vital human resource management practices that affects the value of the workforce’s knowledge, capability and skills positively, ultimately consequences are higher on job employee performance and superior organizational performance. Kinnie et al. (2003) state that studies in proofs the existence of strongly positive relationship among HRM practices and organizational performance. Hameed A. and Waheed A. (2011) wrote a research evaluating the theoretical framework and models that are linked with the development of employee and the impact of these models on the performance of employee. The authors stated that employees are essential element for an
- 10.organization. The employee performance has such a significant impact that an organization’s success or failure is dependent on it. For that reason, companies are highly engaged in employee development and investing large lump sum of money in this regard. The research had proposed certain identified key variables. The variables were namely; skill growth, employee learning, employee attitude, self directed learning and employee performance. The proposed model was also discussed in the paper to explain the relationship of the identified variables with the employee development. The paper also stated that employee’s performance ultimately affect the organizational effectiveness. There were three parts of the research. First part was comprises of introduction that gives a concise outline of employee development and its impact of employee performance. The next part examined the outlook and past research studies that belong to the employee performance and employee development. Under the last part of the research, the model was proposed and a discussion was made to further explain the model. One of the research findings identifies training and development is essential for employees development and thus for employees performance. And an increased effectiveness of employee’s performance results in increased organization’s overall effectiveness. Sultana et al. (2012) studied the training practices that are taking place in Pakistan’s telecommunication sector. Also the impact of these training practices on employee performance has analyzed. The research was conducted on the basis of co Based on the mixture of questionnaires surveys and literature review. The research paper emphasized on planned and systematic training design and its implementation, customized exclusively for performance enhancement and productivity improvement, in order to successfully attaining the training program’s objectives. The target of the study was to conduct a 360 research and for this purpose respondents were selected from five companies of telecommunication industry of Pakistan. It
- 11.was observed by the researchers that mostly the organizations are dependent on ad hoc and disorganized path to meet the requirements of training whereas there are some organization set certain identified training need analysis and procedure, design the activities of training in rational and calculated manner and evaluates the results on cost-benefit analysis. The research explores that if companies spend their resources in precise and accurate category of employee training it may develop employee performance along with their skills and competencies. Moreover, training is visualized as a helpful way of deal with the changes cultivated through technological advancement and innovation; market rivalry, organizational configuration and most prominently it performs a vital role in enhancing employee performance. Farooq and Aslam (2011) did an empirical research to examine the imact of training and feedback on employee performance. The authors also conducted a thorough literatural review that illustrates the importance of both factors to influence the employee performance. The review further highlighted the improved quality of task performance and processes because of training and feedback that causes the employee performance enhance. the research was based on questionnaires as well. The findings of the research were more or less the same as previous authors. The results show that training programs are effective for employee performance keeping the arrangement and adaptation of training as a planned procedure to make the performance more effective, however the study implies little features of training and feedback. One more point was that the results can easily be applied to the all sorts of organizations. Elnaga and Imran (2013) studied the impact of training on employee performance and provide suggestions in order to enhance the performance of the employees via effective training courses. Authors resembled the employees with the blood stream of business. The success and failure of the company is highly dependent upon its employee performance. Therefore, top level
- 12.management must realize the significance of investment for training and development in order to enhance the performance of the employee. The research is comprises of qualitative research approach. It analyzes the literature aspects and the several case studies discussing the importance of training to enhance employee performance. Moreover, the analysis of theoretical framework was also the part of research in which models regarding employee development, training and development, several programs of training and development, impact of these programs on employee performance were considered. Furthermore, a review of recent scenarios and researches on these relationships were analyzed. Authors imparted their suggestions keeping in mind recent scenarios. However, the study’s limitations are inadequate to illustrate the relationship between two variables, training and employee performance. Therefore, they suggest an empirical study to make the research more reliable. Fakhar et al. (2011) conducted a research on impact of training on employee performance in context of Pearl Continental Hotel, Karachi Pakistan. The research was examined on the basis of age, experience, gender, no. of trainings attended, time spent on these training and overall performance scores acquired through training examination. Six dimensions of performance were analyzed namely; job preparedness, work safety, physical maintenance of rooms, hotel hygiene, preparation for serving customers in several ways and communication with the guests. A questionnaire was developed in order to obtain primary data, that was comprised of performance inventory and employees training profile. Several regression models were used to examine the avquired data and calculated the R2 values for each training factor and develop a relationship among the performance dimensions as well as analyzing the extent of strength of relationship. The results imply that there is essential and strong relationship among variables. Also, those employees who have attended huge number of trainings were found more capable while
- 13.performing the assigned tasks as compare to those who didn’t attend any training. Author further emphasized that the problems existing in the hotel such as service delivery issues might be tacked by conducting a proper need assessment process, designing of training as per the results of assessment and delivering the training programs accordingly. That helps a training to be more effective and increases the chances of getting expected results. Moreover, a training program must be focused and evaluated in order to cross check the effectiveness. This evaluation might be done through performance appraisals and key performance indicators. This process provides further solutions to tackle the problem or cope up with similar issues arising in the future. The participation of employees in such training programs not only enhances the training process and results but also help in increasing motivational level of employees. Khan M. I (2012) examined the training and motivation’s impact on employee performance and what role does training and motivation has to enhance the employee performance. A correlation existence among training and employee performance was also gauged. Author argued that there are multiple factors that have a great influence on employees for instance motivation, training, work environment, technology and behavior of management. Each factor has different level of impacts on the performance of employee. It depends on employee to employee that which factors have greater importance to him that ultimately have greater impact on his/her performance. The study results illustrate that among all the factors such as technology, motivation, behavior of management and work environment, there is a huge impact of training on the employee performance. A strongly positive correlation exists among training, motivation and employee performance. The result emphasizes that factors, motivation and training, impacts the employee performance positively. Moreover, an effective training program of the organization means effective enhancement in the employee performance. Author further suggest
- 14.focus on effective training program and motivation of employee is the key to increase the
Acemoglu and Pischke (1998) surveyed fresh researches of that time illustrating the
theories and importance of training practice within the organizations that are interested in
training investment. The authors argued that to understand any model regarding firm’s believe
on spending on trainings is not possible unless the imperfections in labor market exists. These
imperfections broadens the discussion paths on labor market establishments, their effects on
wage structures and the way these things influence the firms to acquire investment decisions in
human capital. It was evident from the research that the labor markets where competition is low
companies squeeze the labor wages and also spends less on their training. That means training
is an essential component to create a competitive edge in the industry. On the other hand, the firms that squeeze the labor wage might invest in general training as well. As the wages are low the companies have more money to invest in training programs. Thus a low wage might increase the training programs investments of the firms. The research also emphasized a proper training procedure to be followed to attain required research such as training need assessment, training designing and development, effective delivering and controlled evaluation to conduct cost- benefit analysis. These gauging of return of training, by and large, requires productivity’s straight measures. Bartel (1994) gauged the gains in terms of productivity as a result of implementing certain training programs for employees. The study emphasized on the data acquired from the personnel policies and economic features of the companies of manufacturing segments. The effects of formal trainings courses on productivity of labors were evaluated. The results signify that the companies that were functioning lower than there perceived level of productivity of labors in
- 15.1983 has developed new policies for training programs and implemented these programs in the companies in 1983. The results were largely influenced with profitability. The labor productivity has showed a considerable rise from 1983 to 1986. That increase in growth of productivity was quite enough to boost up the overall companies’ growth and productivity. • CHAPTER 3 • METHODOLOGY This chapter explains the design adopted to accomplish the study including study model, variables tested for hypothesis, hypothesis, population, sample size, and data collection methods. This research has examined the influence of training and development on employee performance in context of super market industry of Karachi. The data has been collected from different chains of renowned supermarkets of Karachi namely Hyperstar, Metro Cash and Carry, Imtiaz Super market and Fareed super store. The data collected from the questionnaires has been tested in SPSS. To form a relationship between the variables, regression and correlation has been tested. That illustrates the dependency of training and development on employee performance as well as the extent of dependency. • Study Design In this research, the primary data has been collected on independent variable (Training and Development) and dependent variable (Employee Performances). The data was collected from
- 16.workers and employees of several supermarkets of Karachi, Pakistan via questionnaire. Secondary data has been collected from different publications. • Population The population of this research consists of all workers and managers working in all supermarkets located in the premises of Karachi. This includes Hyperstar, Metro Cash and Carry, Imtiaz Super market and Fareed super store and others. For this study, the companies were selected on the basis of time availability, existence of Training and Development department and market position as compared to other competitors. • Sampling Availability/ convenience Sampling technique has been acquired for this research. The different feasible supermarkets, their head offices and the chains were identified keeping in mind the reach and availability. This technique was most useful as the workers and employees specially the lower level one are most feasible for this analysis. In the first phase, a formal permission was obtained through email and other resources (including personal visits for time provision). In the second stage, an informed visit to the organizations was taken place. The employees, workers and middle level management were already prepared for the informed visit for questionnaire filling purpose. However, there were some respondents notably middle level managers who preferred an online response of the questionnaire (via email).
- 17.• Instrumentation To measure the Training and development impact on employee performance, the questionnaire was used based on questionnaires used by Masood (2010). The questionnaire method is best utilized on social sciences researches due to ease in analysis and evaluation. As the surveys are most used methodology for data gathering purpose and are easy to collect maximum information from huge population, they provide standardized information. This information can be used for quantitative analysis of the collected information. The surveys are of two different types. 1) Relational surveys and 2) descriptive surveys.Relational surveys are ones whose purpose is to collect information for an empirical relationship testing and analysis of two different variables. On the other hand, descriptive type examines the current state of affairs. This study comprises of relational survey that purposes to recognize connection among training and development and employee performance in context of supermarket industry of Karachi, Pakistan. The survey questionnaire was consisting of 5 likert scale. The Five likert scale is as follows • Strongly Disagree • Disagree • Neutral • Agree • Strongly Agree The questionnaire was consisting of two special sections namely section (A) and section (B). In Section (A) personal as well as company information based on nominal and ordinal scaling was used. On the other hand, section (B) comprises of the closed ended questions
- 18.regarding Training and development and employee based on 5 likert scale. A cover letter has also been designed that illustrates the purpose, objective and scope of the research in order to assure the respondents regarding secrecy and privacy of the information they provide. The questionnaire was handed out to employees of different chains of renowned supermarkets of Karachi namely Hyperstar, Metro Cash and Carry, Imtiaz Super market and Fareed super store. These chains were visited one by one and the complete data collection process took around 45 days. To form and analyze the relationship between training and development and employee performance, several research papers, books and research thesis have been studied. • Data Collection A total number of 100 supermarket employees of different market players were contacted and visited. Initially, a process of permission was taken place. E-mails and letters were sent to the supermarkets. Also, it was explored that in some organizations training processes doesn’t exist. Such companies were eliminated from the list of respondents to ensure the reliability of data. Once the total 100 filled questionnaires were received in the form of hard copy and email both, the data was decoded and entered in to the SPSS 17.0. To ensure that all questions are responded, partially filled questionnaires were discarded and refilled by some other employees. • Research model and variables
- 19.As before the modeling framework a widespread literature review was done, on the basis of the review findings training and development was selected as an independent variable whereas employee performance was selected as dependent variable. • Theoretical framework Through training and development, employee performance can be modified as per the desire and need of employer. The independent variable, training and development will significantly elucidate its aspects that enhance the effectiveness of employee performance Figure 1 Training as Bridging Gap Training has eliminated the chances of error in employee performance (Raymond Noe). Training purposes to evaluate weaknesses in employee task performance and identifies gaps that exist in actual and required performance (Fig 2). Once the gaps are identified, training process focuses on these gaps to remove errors and enhances not only employee future performance but also stimulates development of these employees. Figure 2 Performance Gap Identification • Hypothesis After conducting a vast literature review the following hypothesis was developed for the purpose of this study completion.
- 20.Hypothesis: Ho: Training & Development positively affects Perceived Employee Performance. H1: Training & Development negatively affects Perceived Employee Performance. • CHAPTER 4 • RESULTS The chapter illustrates the information acquired through the questionnaire for the study. The findings have been stated as per the results obtained through different tests. SPSS 17.0, Statistical Package for Social Sciences was used to gauge descriptive statistics, correlation, ANOVA, and regression analysis. The major purpose of the research was to find the relationship between two variables Employee performance and TnD and to determine the extent to which Training and Development impact employee performance. • Research Question 1 What is the relationship between Training and Development and employee performance in context of supermarket industry of Karachi, Pakistan? Correlation results have been given in Table 4.1. That shows a positive relationship among the two variables. Franzblau (1985) defined his five classical rules that interpret the coefficient of correlation between different variables.
- 21.(r = 0 to .20) indicates negligible or no correlation (r = .20 to .40) indicates positive but low degree of correlation (r = .40 to .60) indicates positive moderate degree of correlation (r = .60 to .80) indicates positive and marked degree of correlation (r = .80 to .1.00) indicates positive and high degree of correlation The variables have been dealt as symmetrical, i.e. there are no differences between dependent and independent variables. When two different variables diverge in same direction, the variables are considered correlated. These variables either increase or decrease together and the correlation is considered to be either positive or direct. An inverse or negative relationship is when one variable increases and other tends to decrease. Table 41 Descriptive Statistics Descriptive Statistics N Minimum Maximum Mean Std. Deviation TrainingAndDevelopment 100 3.50 5.00 4.4900 .35831 EmployeesPerformance 100 2.90 5.00 4.5700 .34275 Valid N (listwise) 100 Standard deviation measures the level/ amount of dispersion for the given distribution. If the standard deviation’s value is smaller, then the data set observations are closed to the mean whereas in case of larger standard deviation’s value then the data set observations are spread widely to its mean. Table 4.1 shows the minimum and maximum values of the variables. It also illustrates the Mean and the deviation of the values to its mean (Standard Deviation). The total no. of respondents (N) is 100 out of which all (N) are valid. The minimum value for variable
- 22.Training and Development is 3.50 whereas the maximum value is 5. The mean of the variable is 4.49 with the standard deviation of 0.35. Similarly, the minimum value for variable Employee Performance is 2.90 whereas the maximum value is 5. The mean of the variable is 4.57 with the standard deviation of 0.342. The analysis of the table shows that a minor difference exists among the responses of several employees of supermarket industry of Pakistan. That leads us to the common direction indicating that along with the small standard deviation figure and mean with high value, respondents are agreed with the questions that were asked from them. Table 42 Pearson Product Movement correlation between factor variables (N = 100) Correlations TrainingAndDevelopment EmployeesPerformance TrainingAndDevelopment Pearson Correlation 1 .333** Sig. (2-tailed) .001 N 100 100 EmployeesPerformance Pearson Correlation .333** 1 Sig. (2-tailed) .001 N 100 100 **. Correlation is significant at the 0.01 level (2-tailed). Table 4-2 illustrates the correlations between the dependent and independent variables whereas Table 4-1 shows the descriptive statistics consisting upon standard deviation, mean, minimum and maximum values. The results show that there is a positive correlation exists between dependent and independent variables. The relationship between employee performance and training and development is positive. Training and development plays vital role in stimulating employee performance with r = 0.333 whereas probability is 0.001. Most of the respondents are in favor of TnD, proving that a well organized, well planned and evaluation based training and
- 23.development processes within the organization can positively enhance the employee performance in context of supermarket industry of Pakistan. • Research Question 2 To what extend does Training and Development stimulates the employee performance in context of supermarket industry of Karachi, Pakistan? To analyze the degree of TnD impact on employee performance, Regression Analaysis was used. Kerlinger and Lee (2000) states that it is a statistical technique to evaluate the relationship on one dependent variable on one or more independent variables in form of linear equation. This Regression helps examine that how much an independent variable is impacting the dependent variable. In this research study, Training and development has been used as an independent variable and employee performance as a dependent variable. The tables 4-3, 4-4, 4-5 and 4-6 show the summary of regression result. Table 43 Results in Summary Variable Beta R2 ∆R2 Significance TrainingAndDevelopment 0.33 0.111 0.102 0.01 Table 44 Regression Analysis Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate
- 24.1 .333a .111 .102 .32482 a. Predictors: (Constant), TrainingAndDevelopment Table 45 ANOVA ANOVAb Model Sum of Squares df Mean Square F Sig. 1 Regression 1.291 1 1.291 12.232 .001a Residual 10.339 98 .106 Total 11.630 99 a. Predictors: (Constant), TrainingAndDevelopment b. Dependent Variable: EmployeesPerformance Table 46 Coefficients Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 3.139 .410 7.650 .000 TrainingAndDevelopment .319 .091 .333 3.497 .001 a. Dependent Variable: EmployeesPerformance The Regression analysis of Training and Develoment as dependent variable specifies that training and development significantly contributes in employee performance enhancement with 0.33 of beta, R2 = 0.11, ∆R2 = 0.102 and P (sign.) = 0.01. F-statistic shows the value of 12.232 with significance level of 0.01, supporting the hypotheses that training and development has significant impact on employee performance.
- 25.The T test is 7.65 for constant with significance level of .000 and 3.497 with significance level of 0.001. Thus, it is concluded that training and development imposes large impact on employee for performance for supermarket industry of Karachi, Pakistan. • CHAPTER 5 • CONCLUSION This chapter discusses the conclusions drawn from the regression analysis and descriptive statistics. The trends in Human Resource Management practices throughout the world are changing dynamically. Nowadays, employers are more concerned about employee’s retention and controlled employees’ turnover than cost cut off. The need of employee’s retention has encouraged the employers to pay attention towards employee’s development through training in order to keep them motivated. The core purpose of involvement in training and employee’s motivation is to improve employee’s performance resulting in enhanced organization’s performance. Training is considered as an act that involves growing the knowledge and skill level of an employee in order to perform a specific job. Training in the corporate world is considered as a necessity rather than a luxury. It is more like an investment of the organization in Human Resource. Performance might be described as the attainment of particular job calculated on the bases of identified or set standards of accurateness, completeness, speed and cost. Under an employment agreement, performance is supposed to be the achievement of an assigned
- 26.obligation in such a way that releases the performer from all accountabilities written in the contract. The objective of the study was to examine the impact of training and development on employee’s performance in context of supermarket industry of Karachi, Pakistan. Also, to gauge the level of performance enhancement due to training programs in the industry keeping these objectives in view, I suppose that training has a positive relationship with performance of employees on job. The data has been collected from different chains of renowned supermarkets of Karachi namely Hyperstar, Metro Cash and Carry, Imtiaz Super market and Fareed super store. There were 100 respondents that answered the questionnaire. The survey questionnaire was consisting of 5 likert scale. The Five likert scale is as follows • Strongly Disagree • Disagree • Neutral • Agree • Strongly Agree The data collected from the questionnaires has been tested in SPSS. To form a relationship between the variables, regression and correlation has been tested. That illustrates the dependency of training and development on employee performance as well as the extent of dependency.
- 27.The results show that there is a positive correlation exists between dependent and independent variables. The relationship between employee performance and training and development is positive. Training and development plays vital role in stimulating employee performance with r = 0.333 whereas probability is 0.001 The Regression analysis of Training and Develoment as dependent variable specifies that training and development significantly contributes in employee performance enhancement with 0.33 of beta, R2 = 0.11, ∆R2 = 0.102 and P (sign.) = 0.01. F-statistic shows the value of 12.232 with significance level of 0.01, supporting the hypotheses that training and development has significant impact on employee performance. The T test is 7.65 for constant with significance level of .000 and 3.497 with significance level of 0.001. Thus, it is concluded that training and development imposes large impact on employee for performance for supermarket industry of Karachi, Pakistan. • CHAPTER 6 • RECOMMENDATIONS Since training and development has imposed positive impact on employee performance in context of supermarket industry of Karachi, Pakistan, it can help create sustainable competitive advantage over other key players. Supermarkets should develop a sound training and
- 28.development process where the performance of employee is evaluated through transparent systems. Training must be based on need based analysis and returns should be collected statistically. It should be a continuous process as it helps reduce cost in long run. The supermarkets that consider TnD essential for their growth are significantly expanding their businesses. For new entrants, it is the most important factor that should be ensured before their business commencement if they want success in long run. • REFERENCES Acemoglu, D., & Pischke, J. S. (1999). Beyond Becker: training in imperfect labour markets. The Economic Journal, 109(453), 112-142. Afaq, F. U., Yusoff, R. B. M., Khan, A., Azam, K., & Thukiman, K. (2011). Employees’ Training and Performance Relationship in Hospitality Sector A Case of Pearl Continental Hotel, Karachi, Pakistan. International Review of Business Research Papers, 7(3), 149-158. Bartel, A. P. (1994). Productivity gains from the implementation of employee training programs. Industrial relations: a journal of economy and society, 33(4), 411-425. Dale S. Beach (1980), Personnel: The Management of People at Work, Macmillan Publishing Company, New York, p. 244. David A. DeCenzo and Stephen P. Robins (1989) , Personnel/Human Resource Management - Prentice-Hall of India, New Delhi p. 240.
- 29.Dr. N. Jagero, K. Hilary V., M. Michael (2012), “Relationship between on the Job Training and Employee’s Performance in Courier Companies in Dar es Salaam, Tanzania” , International Journal of Humanities and Social Science, Vol. 2 No. 22 pp. 114-20. Dubbashi P.R. (1983), Strengthening of training facilities, Souvenir of Cooperative Training College, Bangalore, Cooperative Training College, Bangalore p. 1. Edwin B. Flippo (1960), Personnel Management, training operative personnel principles McGraw. Hill, 240. Elnaga, A., & Imran, A. (2013). The Effect of Training on Employee Performance. European Journal of Business & Management, 5(4). Farooq M. and M. Khan A. (2011), “Impact of Training and Feedback on Employee Performance”, Far East Journal of Psychology and Business, Vol. 5 No. 1, Pp 23-33. Guest, D. (1997), “Human resource management and performance: a review and research agenda”, International Journal of Human Resource Management, Vol. 8 No. 3, pp. 263-76. Hameed. A and Waheed. A, (2011), “Employee Development and Its Affect on Employee Performance A Conceptual Framework”, International Journal of Business and Social Science, Vol. 2 No. 13 Pp. 224-29. Khan M. I. (2012), “The Impact of Training and Motivation on Performance of Employees”, Business Review, Volume 7 No. 2, Pp. 84-95. Kinnie, N.Purcell, J., , Hutchinson, S., Rayton, B. and Swart, J. (2003),Understanding the People and Performance Link: Unlocking the Black-Box. Research Report, CIPD, London.
- 30.Michael Jucius (1955), Personnel Management, Richard D. Irwin Inc., - Hanewood, llinois, U.S.A, p. 142 Raymond A. Noe. Employee Training and Development. Fifth Edition. The Ohio State University. Me. Graw. Hill. McGraw-Hill. Irwin Sultana A., Irum S., Ahmed K., Mehmood N. (2012), “impact of training on employee performance: a study of telecommunication sector in Pakistan”, VOL 4, NO 6, Pp. 646-61. • APPENDICES • Annexure I: Questionnaire HRM Survey A case of supermarket industry of Karachi, Pakistan 2014 • Impact of Training and Development on Employee’s Performance in Context of Supermarket Industry of Pakistan Part A Please provide the following information. Organizational Information Name of the organization Life of organization (in years) No. of employees in the organization
- 31.• Personal Information Gender Male Female Age (in years) 20-25 26-30 30-35 36 or above Education (in years) 12 14 16 18 Total professional experience (no. of year approx): Email (optional) Phone (optional) Part B Please encircle the appropriate number against each statement, according to the scale given below. Strongly Agree 5 Agree 4 Neutral 3 Disagree 2 Strongly Disagree 1 Employee performance: • Quantity of our employees’ work output has improved in last five years. 1 2 3 4 5 • Coming up with new ideas is appreciated in our organization. 1 2 3 4 5 • Most of the employees achieved organizational goals of last 5 years. 1 2 3 4 5 • Targets given to different employees often met. 1 2 3 4 5 • Over all employees targets achievements has improved over the last 5 years. 1 2 3 4 5 • Employees feel happy to work in teams. 1 2 3 4 5 • Majority of our employees can work independently and they give high performance. 1 2 3 4 5 • Employees in our organization have been enabled to make decisions well. 1 2 3 4 5 • Employees’ communication skills have been improved in this organization 1 2 3 4 5 • Employees’ competencies are in line with the organizational operational and strategic goals 1 2 3 4 5
- 32.Training & Development (T&D) • Our organization conducts extensive (T&D) programs for Employees. 1 2 3 4 5 • Employees at each job normally go through T&D programs every year. 1 2 3 4 5 • Training needs are identified through a formal performance appraisal mechanism. 1 2 3 4 5 • There are formal training programs to teach new employees the skills they needed. 1 2 3 4 5 • Trainings needs identified are realistic, useful and based on the organizational strategy. 1 2 3 4 5 • There are formal training evaluation methods to assess the effectiveness of the training. 1 2 3 4 5 • The organization has a system for calculating the cost and benefit of training. 1 2 3 4 5 • T&D has helped reduce employee turnover in our organization. 1 2 3 4 5 • T&D has resulted in higher employee performance in our organization. 1 2 3 4 5 • T&D has resulted in higher productivity and financial returns for the organization. 1 2 3 4 5
Category: Research proposal