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which resulted in significantly large increase in labor productivity between 1983 to 1986 (Bartel,
1991).
Training has got a very important place in measuring productivity. Employee training has a
positive and significant effect on productivity and wages, but the effect of training on wages is
half the size of the effect on productivity. Unobserved diverse work force leads to overestimate
the impact of training on productivity, whereas not giving importance to employee training
within origination leads to underestimate the impact of training on productivity (Dearden, Reed
and Reenen: 2006, Colombo and Stanca, 2008).
Another view about the employee training is that it is an expensive plan, so in order to get full
value from employee training, organizations need to reinforce training and create such work
environment that supports transfer of new knowledge/skills to the job and the organization
(Asherman, 2010).
Training also helps in retaining knowledge within the organization, but may not help in retaining
employees. Sometimes organizations do not gain increased retention rates, but derive other direct
and indirect benefits from training such as improved job performance, increased job satisfaction
and reduced levels of job related stress (Acton & Golden, 2002).
(Switzer, Thomas and Featherrianghum, 2006) according to their research, In-house training
is the most popular method in training. Training programs accomplish more than just introducing
employees to new surroundings.
(Rabemananjar and parsley, 2006) investigated in Canada that small businesses train their
employees less than medium-sized and large businesses and firms that pursue an innovation or
growth strategy are more likely to train employees regardless of firm size.
Large businesses that introduce new technology and have high proportion of internal promotions
were more likely to have formal training programs. Formal training had a positive impact on
labor productivity, especially in those businesses that evaluated their training programs based on
productivity indicators. Increase in productivity attributable to training is largely due to the fact
that businesses who undertake employee training rely on screening of job applicants which
significantly enhances labor productivity (Bartel, 1989).And by linking the positive relation of
employee training with the overall strategy of the organization; many organization are using it as
a competitive advantage (Khera, 2010).
Training is one of the several human resource practices that can have considerable impact on
employee. A positive relationship between training and employee motivation, employee
commitment and employee satisfaction has been found. When employees are motivated,
committed and satisfied, they tend to be more skilled, knowledgeable, dedicated, well
experienced and work as one unit to achieve organizational goals (Nadeem, 2010).
Related Theory
Donald L Kirkpatricks Evaluation Model
Kirkpatricks model is one of the best known evaluation method used for judging learning
processes. It has four levels of evaluation:
capability.
Behavior Extent of improvement behavior and capability
and implementation.
Results The effects on the business or environment
resulting from the learners performance.
Stages
Kirkpatricks levels
Evaluation tools
1.
Reaction
2.
Learning
3.
Behavior
4.
Results
Kirkpatrick's concept is quite useful as it makes an excellent planning, evaluating, and problem
solving tool. The model can be used for other learning processes. For example, such as informal
learning, development, and education
Job autonomy
Organizational support
Training
Distributive justice
Procedural Justice
Elena P (2000) says that when employees are willing to learn, they show their interest in the
developmental activities and as a result they are more satisfied with the job which will lead to an
increase in employee performance.
Sheri-lynne, Parbudyal (2007) conducted a research on employee development. She said that
Employee development is becoming an increasingly critical and imperative for organizations in
the current business environment. She mentioned five variables of employee development that
will affect on employee performance
Coaching
Training and development
Empowerment
Participation
Delegation
Research suggests that the investment made in training can be justified by the contribution it
makes to improved individual and organizational performance (Bartel, 2000).
Job satisfaction may be the general behavior emerged due to different happenings at the work
place; it may be supervisors behavior, relationship with peers or the work environment (Janet,
1987)
Job satisfaction is dened as how people feel about their jobs and different aspects of their jobs.
It is the extent to which people like or dislike their jobs (Spector, 1997).The relationship
between job satisfaction and training has be addressed in some previously studies.
Bradley, Petrescu and Simmons (2004) explain that enhancing ongoing learning as well as
training in workplace has a highly significant effect on job satisfaction. In addition their study
indicates that training increases the probability of their work being either completely satisfied or
very satisfied which in return increases employee motivation and commitment. In other words,
ongoing learning or training has positive association with job satisfaction.
Organizations that offer effective job training may nd that they have better trained and more
satised employees. Employees satised with their job training are also more committed to their
organizations (Bartlett, 2001; Tansky & Cohen, 2001)
Aman Ali Al-Alawiyat(2010) conducted his study on the training as a motivational tool in Saudi
Arabia and found that training plays an essential role in the organization. It has huge effect on
job satisfaction. This effect may be indirect, but it is vital and its impacts on the employees and
organization are more than expected. Training affects many important areas, i.e. productivity,
quality, effectiveness, and commitment. These factors play an important role in any
organizations development.
It is said that the Employees stay at companies that promote career opportunities through
learning, and the ability to apply their newly learned skills (Cataldo et al., 2000; Jiag & Klein,
2000).
Chang (1999) stated that when the company provide training to its staff. It might affect the
psychological states of employees. Employees start believing that the company is doing a good
job of providing proper training; they feel that the company is concerned with improving their
skills and ability; making them attached to the company as a result a stronger continuance
commitment will develop.
The implementation of effective HR practices has been shown to play an important role in
building and maintaining the commitment of employees towards the organization (Allen et al.,
2003)
Employee training is intended to provide an opportunity for advancement and it might be
perceived as the organization values them and increase their self worth, therefore building
stronger affective commitment (Meyer and Allen, 1997).
In order to judge better the effectiveness of training it has been suggested that its relationship to
organizational commitment should be examined directly.
positively related to organizational effectiveness (Bartlett, 2001). Training, like other HRM
practices can be utilized to elicit desired responses which may include improved organizational
commitment.
Ahmad and Bakar (2003) suggest that employees who recognize the benefits from training will
tend to be more committed and so be more willing to participate in an organizations training
activities.
These findings illustrate the potential benefits of enhancing the organizational commitment of
employees by promoting the personal and career-related benefits of participating in training.
Feedback,
Time limits to achieve set goals,
Subordinates participation in goal setting,
Praise or reproof.
excessive work demand, role conflicts, and problems maintaining customer relationship which
are causes of stress.
The Office of Radiation, Chemical and Biological Safety conducted a survey in 1999 after which
they concluded that better managed employees are more cooperative and serve as assets for an
organization. When the stress of an employee is ignored by the employer the results are
increased absenteeism, high cost, low productivity, low motivation and usually legal financial
damages.
Stress results in high portion of absence and loss of employment. The ratio of stress affectees in
organization are increasing on alarming rate which affects both the employee performance and
goal achievement (Treven 2002).
Job stress is rising and has become challenge for the employers and because high level stress
results in low productivity, increased absenteeism and collection to other employee problems like
alcoholism, drug abuse, hypertension and host of cardiovascular problems (Meneze 2005
Han Salye, who is probably considered as the leading authority on the concept of stress,
described stress as, the role of all wear and tear caused by life. Stress is associated with
constraints and demands. Constraints prevent the person from doing things what he or she
desires. Demand refers to the loss of something desired.
Existing studies point to the kinds of organizational consequences of work-related stress that we
would expect to find. These include direct costs (absenteeism, turnover, strikes/work stoppages,
quality/quantity of output, accidents) and indirect costs (job dissatisfaction, low commitment,
distrust, animosity, aggressiveness) (Quick et al 1997).
Introduction
Training is not provided just to get knowledge or improve certain skills but it also helps to
enhance ones entrepreneurial skills, confidence or creativity and helps them to be more
welcoming toward the changes in the organization or industry. It is also being provided to
increase the employee decision making skills, which eventually lead an employee to perform
well and increase the productivity of an organization.
The purpose of this research is to study the effect of training on productivity due to performance
showed as a result of training employees and To know that why organizations spend heavily on
the employee training these days? Why some organizations arrange training programs on big
scales, send their employees across the borders to get the up-to-date training and bear all the
expenses of their tour. What advantage does it give to the organization? We have also studied
various relevant articles to understand more about the importance and significance of these
variables. After this research, it will become more clear that what kind of job training improves
the productivity of employees and how.
Training of the employees these days is considered as an integral part of any organization
conducting their business on small or big scale. Organizations are giving training to almost all
level of employees from top managers to supervisors. Providing training is not more important
than its actual implementation by employees on their actual job. In todays changing global
environment training is very important to keep the employees up -to date and help them to cope
with the changing environment, technology and competition. It also helps an organization to get
a competitive edge on their competitors and increase its sales profit. This research paper will
serve as a useful piece of work in understanding the
Theoretical Framework
Model
(Independent Variable)
(Dependent Variables)
Employee
Training and
Development
Employee
Productivity
Hypothesis
1. The relationship between employee training and development is positive.
2. Increase in employee training will increase motivation which will also increase productivity.
3. If the training programs are more effective then they will boost the productivity.
Research Methodology
Data collection
For data collection we used both the primary source and the secondary source of information
available. The related articles that are mentioned in the literature review were searched and
collected from different sites, journals through internet and for research purpose we
used questioners of 13 different questions relating to our two main research variables training
and productivity.
Sampling Design
Our population consisted of the employees from all the organizations. The employees who are
given training and those who do not get training both will be part of our sample frame. Our
Sample size was 50 employees.
Results
Our result shows that there is a positive relation between training and productivity. The change in
one variable will lead to change in another variable in a specific manner. It tells us that
productivity of employees depends upon their training or if sufficient training is being provided
to the employees there productivity will increase.
Discussion
Training is not only helping the employees individually do their work better but also If we want
more positive and a significant increase in the overall performance and productivity than it is
essential to train employees about the new technologies, new market trends, essential skills and
many more. Training is also helpful in making the employee efficient and motivates them enough
so that they can grab future opportunities and make better decisions. The company should
understand the training needs of its employees and know the type of training which will be more
helpful to them in performing their tasks better. Our results also show that the training of
employee would bring significant change in their performance and organizations overall
productivity. However a manager should be vigilant to know that, Are the employees satisfied
with the training they are getting and will it be helpful for the organization in increasing its
productivity or not.
Appendix
Questionnaire:
Our topic of research is Training and Development Increases Productivity. We will
measure our results based upon these questionnaire feedback so kindly give us your unbiased
views about the following questions.
On the following scale, tick mark in the box to indicate how much you agree or disagree with
each Statement.
Strongly
Agree
There is a well-designed and widely
shared training policy in the company.
As an employee you receive the training
Necessary to your job.
As an employee you receive needed
training about new technologies.
External training programmes are
carefully chosen after collecting enough
information about their quality and
suitability.
Training of workers is given adequate
importance in your organization.
The employees are helped to acquire
technical knowledge and skills through
training.
Your earlier training satisfies your
requirements.
Training opportunities are unfairly
allocated across employees or work units.
Employees are sponsored for training
programmes on the basis of carefully
Agre
e
Neither
Agree
nor
disagree
Disagre
e
Strongly
Disagree
Please indicate the three training areas most important for increase in productivity and
your development over the next two years.
Sales Training
Market Training
Technical/Professional Training
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