Abstract

Training is continuous process in improving the caliber of employees. It is an attempt to improve

their current and future performance but the organization should keep a track on their
performance after imparting them training it means training needs assessment and it is a
systematic process of altering the behavior of employees in a direction to achieve the
organizations goals. A training programme is an effort by the employer to provide opportunities
for the employees to acquire job related skills, attitudes and knowledge.

In an era of uncertain and highly competitive business environments business leaders believe that
the level of knowledge and skill of the existing human capital are more strategically critical than
ever before. The sustainability of a business is highly dependent on the process of how the
workforce is informed and trained with state-of-the-art knowledge, skills and how their attitudes
are being groomed in order to maintain sensitivity towards the environmental changes.

In order to meet the ever-growing needs of business and household banking has to become
dynamic and updated in modern scenario and also to take up this industry to the heights of
international excellence requires best combination of new technology and skillful and talented
manpower. Therefore most of the commercial banks either public or private adopt training and
development programmes at the time of induction, promotion and other situation to impart
updated Knowledge, Skills and Attitude (KSA).

The aim of this research study is to examine the effectiveness of training and how
employees perceive training programme in the banking sector. Quantitative method through
questionnaire survey is used for data collection in which questionnaire is distributed to the
employees who acts as the respondents for the study among the selected public and private banks
in Hyderabad. The collected primary data has converted into tabulated and percentage analysis,
Z test, t-test and Rank analysis are used.

Key Words: Training Programme, Knowledge, Skills and Attitude (KSA), Human capital and
Questionnaire.
 Introduction
Back ground of the study:
In India the banking industry has becoming more competitive than ever, private and public sector
banks are competing each other to perform well. The executives of the bank are now in the position
to modify their traditional human resources practices into innovative human resources practices in
order to meet the challenges from other competitive banks. It is aimed to bring out those innovative
and best human resource practices developed and found successful that made them more competitive
in the present competitive banking environment in the various human resource areas where they want
to gain competitive advantage over the rival banks in order to attract and retain the talents and to
differentiate their human resources practice and other services than the competitive banks.

A major challenge for many banks will be to develop the special competencies and skills for credit
appraisal and risk management in an environment of deregulation and openness. As emphasized by
Dr. Bimal Jalan, Governor of Reserve Bank of India, the recommendations of the second Narasimhan
Committee could provide useful guidance to banks particularly in recruiting skilled manpower from
the open market, including lateral induction of experts and deployment of existing staff in new
businesses and activities after suitable training. In this context, the importance of building and
reinforcing corporate vision and culture that fosters creativity and recognizes talent and merit cannot
be relegated to the behind.
The Human Resource Development department has to play a more proactive role in shaping the
employees to fight out the challenges. The banks not only have to make plans and policies and devise
strategies, the actual functionaries have to show willingness, competence and effectiveness in
executing the said policies and strategies. In commercial organizations like banks, HRD departments
have the advantages of not being excessively burdened with day–to–day problems of running the
banks or ensuring profitability of individual transactions. They are in positions to take strategic and
long term view of the competitive advantage of the human resources as well as identify areas of
professional weaknesses to rectify well before any damage takes place in the organization. Indeed
they have the golden opportunity to implement the desired human resources policies to improve and
strengthen the organization to withstand the onslaught of fierce competition in future. Based on this
perspective, an attempt has been made to highlight the factors which, if implemented, may lead to
substantial transformation of banks to compete in an environment of risks and uncertainty.
 Review of literature

Banking is a prime mover in the economic development of a nation and research is so essential
to improve its working results. The management without any right policy is like “building a
house on sand”. It means an effective management always needs a thorough and continuous
search into the nature of the reasons for, and the consequences of organization. In line with this,
some related earlier studies conducted by individuals and institutions are reviewed to have an in-
depth insight into the problem and exploring the reformation of the study. An overall view of a
few studies is presented below.

According to Farooq. M & Aslam. M. K (2011), managers are trying their level best to develop
the employee’s capabilities, ultimately creating good working environment within the
organization. For the sake of capacity building managers are involved in developing the effective
training programs for their employees to equip them with the desired knowledge, skills and
abilities to achieve organizational goals.1
Manjinder (2009) examined the employee’s perception regarding designing, implementation, and
evaluation of the training and development programmes and comparative analysis of training and
development strategies in public and private sector banks. A sample of 150 employees was taken
for the purpose of study. She concluded that both private and public sector banks had focused on
training designing part which was influenced by job requirement, technology advancement and
internal mobility. She further concluded that both types of banks had used best possible methods
for the training of their employees. She suggested that training programmes should be more
diversified. The benefits of these programmes should be extended to all the employees working
at different levels from time to time; and e- training concept needed to be implemented in these
banks.2
Prakash R. Pillai (2008) attempted to analyze the influence of the human resource development
climate existing in banks on the learning orientation of the bank employees. Capable employees
are the greatest assets of all organization. The proficiency of employees plays an essential role in
the context of the diverse challenges faced by the contemporary organizations. Talent
management, employee engagement and employee retention have become the key concerns of
HRD professionals. This is of greater relevance in the banking organizations, being a highly HR
intensive sector. In order to maintain and develop their competencies, the employees should have
an open mind for learning and change. This proactive approach can be generated by providing
adequate opportunities as well as motivation for the employees by fostering a supportive and
favorable climate for learning in organizations.3

Kalyani Muna (2005), in the article titled as “Training : The Emerging Trends in the Changing
Scenario” has explored a new trend of training i.e. a role of “Cognitive dynamics” in training
which is not apparent but drives the forces to the greater degree of competency and commitment
and play an immense role necessary for learning to occur. The article further discusses the
interplay of training and learning principles for congenial learning climate. In conclusion, author
says that the drastic changes in the business scenario call for a speedy transformation of
organizations. Training plays important role in helping organizations achieve change. Changes
may throw an organization out of balance; seriously reduce its vigor until it can reach a new
equilibrium. In this juncture training has been the best device in solving the disequilibrium and
maintaining the required standard in time.4

Niki Glaveli; Stella Kufidu (2005), in their paper analyzed the changes that took place in the
Greek banking industry in the last years, their impact on the role of employees training and
development for strategy implementation and success, using four case studies to investigate the
effect of the environmental changes on these particular banks and the role of their training and
development strategies in adjusting themselves to the changing industry environment.5

Riyaz Rainaye (2004), in their study empirically examined the training policy in two commercial
banks, namely, State Bank of India and Jammu & Kashmir Bank Limited. The focus is on the
various facets of training including Management’s attitude towards training, training inputs,
quality of training programmes and transfer of training to the job. Whereas it records that the
training scenario is to a large extent satisfactory. it evaluates the opinions of the employees of
two cadres of both banks: in particular that it can be made fully effective only when the training
needs assessment and transfer of training to the job are considerably improved, besides bringing
in finer improvements in other dimensions.6
Garavanetal. (2003) found that training process is a more job oriented that can change employee
attitudes and behaviors that motivate them to increase their knowledge and understanding of the
job according to the dynamic corporate environment. Roscoe (2002) said: No professional
completes their initial training equipped to practice competently for the rest of their life . He
argued that corporate environment is changing day by day and in order to cope with the level of
changes, organizations implement various dynamic processes including the training programs
which subsequently increase the motivation levels of employees as after the training process
most of the employees seek promotions to higher level jobs which is the main cause of
motivation.7
“The purpose of a training needs assessment is to identify performance requirements or needs
within an organization in order to help direct resources to the areas of greatest need, those that
closely relate to fulfilling the organizational goals and objectives, improving productivity and
providing quality products and services.”(Janice A. Miller, SPHR and Diana M. Osinski,
Reviewed July 2002.)8
Gregory (2001) concluded that training has a great impact on employee s subsequent job
performance and the lack of training and development results in managers not familiar with the
task requirements as well as the core competencies such as knowledge, skills and abilities which
managers must possess to perform well the organization s tasks, as a result their performance as
well as motivation level decrease. He suggested that the managers in service organizations must
be knowledgeable in all newer functions that apply to their departments so that overall
organizational objectives can be achieved effectively and efficiently in accordance with the new
demands posses by the corporate environment. A descriptive study conducted by a group of
researchers.9
Shishupal Singh Badhu and Karunesh Saxena (1999), Role of Training in Developing Human
Resources is another work of relevance. In this, the authors concluded that an organization
should have well-defined training policy as well as training manual and training should be made
an ongoing process. Regarding the executive development programmes the authors have
concluded that, these programmes have been found to be useful in improving the productivity,
efficiency and effectiveness of managers. The authors have suggested that these programmes
should be included as an integral part of the training programme.10
In a study on evaluation of training, Kunder (1998) -identified six indicators of ineffective
training and development systems: 1) lack of top management support for the training and
development system; 2) no clear link between training and organizational goals or plans; 3)
inadequate, or incorrect accounting of the costs of training; 4) limited or inadequate training
needs assessment; 5) lack of support for applying new skills and knowledge on the job; and lack
of meaningful evaluation of training. One of the basic limitations of these studies is that it is hard
to use their frameworks as diagnostic tools for measuring effectiveness training effectiveness.11

Donald L. Kirkpatrick (1997), Evaluation, Training and Development Handbook approached its,
evaluation process in a more logical way. The author emphasized that while evaluating training,
instead of just studying the reactions of the trainees, the study could be carried out in four
different levels viz., i.e., reaction, learning, behaviour and results. The author’s guidelines and
discussions on each level of evaluation of training are worth mentioning.12

The current research study differs from the studies reviewed in the past, in this study the research
is to evaluate the effectiveness of training in selected banks and how training contributes for
growth of the banks & its employees is clearly examined. It consists of few public sector banks
and private sector banks. Most of the studies focused on either one sector of banks. In this study,
researcher attempts to deal with both public and private sector banks.
 Need of the study

Training is very important for employees in doing the job and it improves the performance or
skills. Training strongly influences the productivity, efficiency, innovative ideas and complete
knowledge about the job.

It is an attempt for exploration of all the issues concerning to Training & Development (T&D)
practices in terms of how the training & development process is conducted (how training needs
are assessed, how T&D is delivered and how T&D programmes are evaluated); exploring top
managers and other levels of the employees personnel's attitudes towards the
importance of T&D in improving employees and organisational performance and the
strategic position and roles of T&D in their organisations. This study aims to investigate
all the problems and challenges that face T&D activities and searches for practical
suggestions to improve the effectiveness of these activities. Finally, it aims to contribute
to the understanding of HRD in differing cultural contexts. This research is mainly
focused on employees at all levels, T&D and HRM attitudes and viewpoints (perception)
towards the research objectives.

Therefore, it is necessary to know the training given to the employees in the organization provide
them level of acceptance, care and confidence after the training programme and their satisfaction
about the training programme.
 Objectives of the study

The following are the objectives of the study:

 To evaluate the effectiveness of the training and development programmes among the
selected public & private banks.

 To identify training needs and opportunities assessed as provided by the respondents.

 To study about the training and development programmes offered by various selected
banks.

 To ascertain satisfaction levels of employees on improving the present system of training

programmes.

 To investigate the relationship between perceived employee training effectiveness and

job satisfaction, motivation and commitment.

Hypothesis:

a) There is a significance increase in the effectiveness after the conduction of training

program.

b) The satisfaction levels of employees are improved after the conduction of training
program.
 Research methodology

Research methodology is a way to solve a research problem in a systematic manner. In it, various
steps that are generally adapted by a researcher in studying the research problem and the logic
behind them are explained in detail. Both descriptive and empirical study have been conducted to
identify different dimensions of training and development programs of the banks, such as
number of programs provided , types of training methods, length of program, training place and
layout, skill and knowledge of trainers, statement of training objective and content to the
trainees, application of learning from training to the work place.

The methodology used in the present research is explained below:

Sampling Design:
 Sampling Unit – Selected Public and Private Sector Banks in Hyderabad constitutes the
Sampling unit.

 Source List/ Frame – Source list includes bank employees includes manager, cashier,
clerk employees, trainees, and faculty members of the training centers and ex-trainees of the
public as well as private sector banks in India.

 Sampling Procedure – Random sampling method is used in the present research. In the
selection stage five banks were selected (three from public Sector and two from private
sector

 Size of Sample – Sample size has been used to determine the number of samples to be
selected. The sample size used in the study is 400 (such that 80 respondents from each bank)
which provides accurate results regarding the population under study.
 Selection of Banks – Five banks were selected (from Public Sector and Private sector banks)
located in the Hyderabad city.

 Sources of Data: Data from both the primary and secondary sources have been included in
the study.

 Primary source: The primary source consists of the staff of the selected public and
private sector banks as mentioned above. For collecting primary data various tools
like Questionnaires, Structured Interview Schedule and Telephonic interview will be
used.

 Secondary sources: The secondary data and information have been collected from
various sources like business newspapers, journals, magazines, RBI Reports and
publications, IBA publications, NIBM publications etc.

 Tools used for data collection: Questionnaire is used for data collection. A pilot study will
be administered as a questionnaire to sample of respondents found out the validation of the
study.
 Data analysis and interpretation

The purpose of the data analysis and interpretation phase is to transform the data collected into
credible evidence about the development of the intervention and its performance. It is the process
of assigning meaning to the collected information and determining the conclusions, significance,
and implications of the findings. The steps involved in data analysis are a function of the type of
information collected; however, returning to the purpose of the assessment and the assessment
questions will provide a structure for the organization of the data and a focus for the analysis.
The tools used for analysis of data are Ms-excel, SPSS and Chi-square, Factor analysis, Scaling
techniques & other statistical tools.

This process usually includes the following steps:

 Organizing the data for analysis (data preparation)

 Describing the data
 Analyzing the data using statistical tools & techniques
 Interpreting the data (assessing the findings against the adopted evaluation criteria)

Where quantitative data have been collected and statistical analysis is done:

 Helps to measure the degree of change that has taken place

 Allow an assessment to be made about the consistency of data

Where qualitative data have been collected, interpretation is more difficult.

 Here, it is important to group similar responses into categories and identify common
patterns that can help derive meaning from what may seem unrelated and diffuse
responses.

 This is particularly important when trying to assess the outcomes of focus groups and
interviews.
 Structure of the study
 Chapter 1-Introduction: This chapter includes the back ground of the study, research
problem, need for study/significance of the project, objectives, hypotheses, methodology –
sample design, sources of information, tools and techniques of analysis, structure of the study
with sound justifications/explanations.

 Chapter 2- Literature Review: Literature reviews provide a critical overview of a range of

sources (literature) on a particular topic. This is often done in the context of a larger study, to
provide a solid foundation for further research. This chapter will help to understand the
relevant theoretical and empirical background of the problem. Focus should be more on the
logical presentation of the empirical evolution of conceptual and methodological issues
pertaining to research problem. Also highlight the methodological clues drawn through this
review of the study.

 Chapter 3 & 4- The Industry and company profile: This chapter contains a brief historical
retrospect about the entity of the study. It helps to understand about industry & company in a
brief or comprehensive summary of essential information that offers perspective knowledge
to the researcher.

 Chapter 5 - Data analysis and interpretations: This chapter deals with the data analysis
procedures and tools we use to interpret the data collected as part of the research process
which helps to draw inferences of the study.

 Chapter 6. Findings, Suggestions, Summary and Conclusions: It gives an overview of the

study, conclusions, implications and recommendations.

 Bibliography: It helps to prevail the list of books, articles, journals and websites that are
referred and used for research study.
 Appendix: It consists of sample questionnaire, evaluation report checklist, tabulated data,
glossaries and abbreviations etc.
 Limitations of the study

The present study is confined to selected public & private sector banks only. A limited number
of employees will be selected as sample. Managers, cashier, clerks, trainers & trainees may not
furnish full details with regard to the training practices in order to maintain confidentiality. Data
provided by employees could be biased too.
However, all possible measures and care would be taken in order to present the findings as
judiciously as possible.

CONCLUSION:

In order to improve the efficiency of employee in the present job and prepare them for the higher
level job, the effective training programmes are necessary. It is also needed to fulfill the
changing banking policies, new technology and the changing environments. Training
programmes are now considered as more of retention tool than a cost. The training system in
banking industry has been changed to create a smarter workforce and to yield the best results. A
Training and development programme helps to remove the performance deficiencies in
employees and also they are esteemed resource of the bank for the success or failure of the bank
operation relay on the performance of employees. Timely evaluation of the success of employees
training and development programmes are most important for the banks.
References:
 Zenith International Journal of Multidisciplinary Research-Vol.2 Issue 4, April 2012, ISSN
2231 5780
 Journal of Diversity Management – First Quarter 2011 Volume 6, Number 1
 Madhu Lincoln, Rama Krishna and Venu Gopal Rao, “HRM Practices in Public Sector
Banks and Private Sector Banks”, Manglam Publications, Delhi, 2008.
 International Journal of Management (IJM), ISSN 0976 – 6502, ISSN 0976 510(Online),
Volume 4, Issue 2, March- April (2013)
 International Journal of Business and Management-Vol. 5, No. 7; July 2010
 IJRMEC Volume2, Issue 7(July 2012) ISSN: 2250-057X
 Report on Trends and Progress on Banking in India, Mumbai, RBI, 2008, p.91
 Armstrong, M. (2007). Human resource management (2nd ed.). London: Kogan Page
Limited.
 G. Pandu Naik;(2007) Training and development text research and cases, Excel books, New
Delhi
 Ivancevich, J. M. (2009). Human resource management (11th ed.). McGraw-Hill Higher Ed.
 Ford, J. K. (2006). Advances in training research: An historical perspective, improving
training effectiveness in
 Work organizations (pp. 1-16). Mahwah, NJ: Lawrence Erlbaum Associates.