Employee Training and Development Notes

Employee Training and Development: Final Year Project

• Submitted by Syed Ahmad Ali, Roll No: F21BMGMT1M01103, Session: 2021-2025.

• Submitted to the Institute of Business Management and Administrative Sciences, The Islamia University of Bahawalpur, in partial fulfillment of the requirements for the degree of BBA (Hons) in Finance.

• Supervised by Dr. Ghazanfar Ali.

Certificate of Approval

• Certified that the project, entitled "Employee’s Training and Development" was conducted by Syed Ahmad Ali under the supervision of Dr. Ghazanfar Ali.

• No part of this project has been submitted anywhere else for any other degree.

Letter of Undertaking

• Syed Ahmad Ali, Program BBA (hons) confirms completion of the Final Year Project Report.

• Followed the IUB and HEC plagiarism policy.

Acknowledgment

• Expresses gratitude to Allah and the Holy Prophet (PBUH).

• Thanks respected teachers for providing guidance and support.

Dedication

• Dedicated to Allah Almighty, His Final Prophet (P.B.U.H), parents, and teachers.

• Aspiration to make them proud and contribute to the country.

Table of Contents

• Chapter 1: Introduction

  • 1.1 Introduction

  • 1.2 Problem Statement

  • 1.3 Introduction of Company

  • 1.4 Research Questions

  • 1.5 Scope and Significance

• Chapter 2: Literature Review

  • 2.1 Literature Review

    • 2.1.1 Employee Training

    • 2.1.2 Employee Development

    • 2.1.3 Factors Affecting Training and Development

    • 2.1.4 Effect of Training and Development on Employee Performance

• Chapter 3: Methodology

  • 3.1 Methodology

  • 3.2 Research Design

  • 3.3 Quantitative Data Analysis

• Chapter 4: Conclusion

  • 4.1 Conclusion

  • 4.2 Recommendation

  • 4.3 Limitation

  • 4.4 References

Chapter 1: Introduction

• Importance of Training and Development:

  • Employees seek ongoing training for career advancement.

  • Positive impact on company culture, job satisfaction, engagement, and performance.

  • Reduces employee turnover and increases talent.

• Employee training and development programs are vital for organizational success.

  • Improve skills and enhance employee productivity.

  • Improve company culture.

• Training and Development:

  • Planned learning experiences for increased productivity and improved performance.

  • Performance: Ability to work efficiently to achieve goals.

• Training:

  • Structured program focused on specific skills for short-term job performance improvement.

  • Includes orientations, lectures, case studies, role-playing, and computer-based training.

• Development:

  • Broader approach focused on long-term growth and preparing employees for future roles.

  • Includes mentoring, coaching, leadership development, and personal growth initiatives.

• Organizations provide training and development to prepare employees for future challenges and competition.

  • Training prepares employees with the right skills and information.

  • Positively affects employee performance and increases organizational efficiency.

• Employee Training:

  • A planned set of activities for imparting knowledge to employees, leading to growth in job skills required for organizational growth.

  • More production-centric and aimed at problem-solving.

  • A short-term endeavor focused on improving the production capacity (product or service).

• Employee Development:

  • The practice of learning new skills and honing existing ones.

  • Employees learn new technologies and techniques, develop industry knowledge, and grow competencies in different areas, with employer support.

• Employee Training Purpose:

  • Enhance job-related learning through formal and informal processes.

  • Provide knowledge and help employees learn technical, interpersonal, and job-related skills for successful job performance.

• Employee Development Definition:

  • Activities that lead to the improvement and enhancement of employee ability for other positions.

  • Prepares employees for changes, such as new jobs or responsibilities.

  • Important for employee maintenance and organizational success.

• Training and Development and Employee Performance:

  • Aim to improve employee skills for organizational growth and meeting future goals.

  • Key to unlock potential success and growth for a competitive edge.
    *Training and development increase both employee and organizational performance and productivity.

  • Motivates and restrains employees.

  • Efficient and trained employees increase performance and productivity, leading to maximum profit.

  • Important for career growth and achieving organizational goals.

  • Prime function is to develop and grow employees for improved productivity.

  • Helps employees cope with upcoming challenges and provide efficient services.

  • Inadequacy in training and development causes demotivation, increased frustration, and a negative effect on employee performance.

• Training and Development and Employee Job Satisfaction:

  • Closely related; job satisfaction reflects an employee's feelings about their job.

  • Job satisfaction depends on factors like incentives and benefits.

  • Training and development is one factor affecting employee satisfaction.

  • Job satisfaction leads to personal satisfaction and development.

  • Satisfied employees are more engaged with the organization.

  • Lack of training and development can increase employee turnover and loss of talent.

• Figure 1:

  • Framework showing the relationship between training, development, and performance.

• 1.2 Problem Statement:

  • Some organizations offer training, yet employees' performance and productivity do not improve.

  • Employee performance is not very important in certain organizations, even after training and development.

  • This negatively impacts both employee and organization performance.

  • The training program may not align with the needs or goals of the employees and organization.

  • A training program without clear objectives can be vague, irrelevant, or unfocused.

  • Identifying training needs can be challenging, especially in large companies with diverse roles and profiles.

  • The organization (Al-Ghazi Tractors Ltd.) faces similar problems.

• 1.3 Introduction of Company:

  • (AL-Ghazi tractors ltd.)

  • Located at Dera Ghazi Khan, the AGTL plant manufactures New Holland Tractors in collaboration with CNH.

  • Achieved the highest local content in Pakistan's automobile industry (92%).

  • Focuses on human capital (customers, employees, and investors).

  • Making the best use of available resources to raise local efficiencies, control spending, and cut costs.

• 1.4 Research Questions:

  • What is the relation between employee performance and training and development?

  • Do training and development have any impact/effect on employee performance?

• 1.5 Scope and Significance:

  • Employees are the most important asset of any organization.

  • Training and development empower employees.

  • Understanding human resource practices helps managers improve employee performance and motivation.

  • Enhanced individual performance increases the chances for the organization to meet its goals.

  • Organizations seek a competitive edge by increasing employee competencies, capabilities, and skills.

  • Study results will help management identify how training and development affect employee performance and how to improve the training process.

Chapter 2: Literature Review

• 2.1 Literature Review: *2.1.1 Employee Training

  • Training is an important part of human resource development.

  • Training and development programs are essential for improving employee performance. A survey indicated that 91% of employees agreed that training and development helped them improve their job performance (The International Journal of Business and Management Research, 2019).

  • Employee performance is evaluated when tasks are completed using learned skills (Imran and Tanveer, 2015).

  • Due to technological changes, increasing competition, and changing environments, organizations realize that considering employee skills and abilities is essential for overall success, making training and development important.

  • Training is significant for company development because employees may lack knowledge, skills, and abilities, leading to failure to complete tasks on time (Abbas Z.2015).

  • The focus of training is on the job or work, such as efficiency and safety in operating machinery (Cole, 2016).

  • Training improves the efficiency of employees by motivating them and influences organizational performance by making them more competitive and well-organized (Saleem et el 2016).

  • Training and development enhance employee skills, knowledge, abilities, and attitudes, resulting in improved worker performance and increased company output (McDowall, A. and Saunders, 2015).

  • Training programs aim to maintain and improve current job performance, while development seeks to improve skills for future jobs (Armstrong, M. 2015).

  • Training is a planned, organized activity that enhances skills, knowledge, and abilities needed to function effectively (McNamara, 2016).

  • Training is an important tool to enhance workforce performance and increase organizational value; organizations must balance the value and distribution of training (Hamblin, A.C, 2015).

  • Organizations require employee training to improve employee performance and should evaluate the training program according to organizational goals (Chris, 2015).

  • Training can bring changes in employee behavior, leading to more satisfaction, less turnover, and greater acceptance of organizational and strategic changes.

  • Training improves and increases the skill level of technical workers in a short time for a specific goal (McConnell,2018).

  • Training improves skills, knowledge, abilities, and employee attitudes, resulting in efficient worker performance.

  • Employee involvement in determining training needs, partnerships between employees and organizations, and setting training goals are advocated.

  • Training methods are behavioral/occupational (orientation, job instruction, apprenticeship, job rotation, coaching) and cognitive/off-the-job (lecture, computer-based).

  • The main purpose of training is to improve knowledge and change employee attitudes and behavior so they can adopt new technology in the organization for production.

  • The result is lower turnover and absentee rates. Fully trained workers show quantity and quality performance. Properly trained people spend less time, money, and resources (Hameed, A & Waheed,2016).
    *2.1.2 Employee development

  • Employees develop skills that enhance their careers, leading to motivation and retention.

  • A fully trained and well-developed employee is vital and increases potential and ability to perform responsibilities.

  • Development offers opportunities to learn and grow, providing common sense and attitude for current and future potential positions.

  • Developmental programs help employees develop personal and professional skills, knowledge, attitudes, and abilities.

  • These programs give knowledge about the business environment, management principles, technologies, human relations, competition, and industry analysis for better management.

  • Human resource development focuses on bringing out the human resources needed for effective performance. .

  • 2.1.3 Factors affecting training and development which affect employee performance:

  • Reasons why training and development is not affecting employee performance:

    • Wrong need assessment: Important to accurately identify training needs to avoid ineffective training.

    • Lack of motivation: Employees must be willing and motivated for training; otherwise, time, money, and resources are wasted.

    • Lack of interest of employees: Employees must actively participate in training to benefit and develop their skills.

    • Feedback is not given: Employees need feedback on their performance and skills gained during training.

    • Cultural differences: Diverse workforces in multinational organizations pose a challenge for training managers due to language and cultural barriers.

  • 2.1.4 Effects of training and development on employee performance:

  • Training and development improve employee performance in several ways:

    • Prepare employees for new responsibilities: Helping them fulfill new roles and improve leadership skills.

    • Make employees aware of industrial and technological changes: Introducing employees to new technology so they can become more skilled.

    • Employee become more engaged: Employees feel valued when provided with training and development, leading to increased engagement with their work.

Chapter 3: Methodology

• 3. 1 Methodology:

  • Report analyzes the effects on employee performance due to training and development programs.

  • Discussed main reasons behind this research in the problem statement.

  • Quantitative approach is used for research, with data collection from AL-Ghazi Tractors Ltd.

  • Secondary data is taken from sources like the internet, published papers, journals, and articles using Google Scholar.

  • A questionnaire is used to gather data from employees about the positive and negative effects of the training and development programs.

  • The population and sample are the employees of the organization.

  • The questionnaire contains 10 questions covering every aspect of training and development programs and their effects on the organization's employees.

• 3.2 Research design:

  • A sample of 10 people was taken, and questionnaires were filled by them; responses were recorded and evaluated.

  • The questionnaire mainly focuses on the relationship between employee productivity and training and development and how employee behavior is affected by the training and development.

  • Designed to be answered in the form of yes, no, or maybe in terms of employee productivity due to training and development.

  • Quantitative analysis of the data gathered from the questionnaire is discussed further in the chapter.

• Quantitative data analysis:

  • 5 males and 5 females (50% men and 50% women)
    $\newline$

  • 90% think training sessions are important for employees
    $\newline$

  • 90% believe proper training programs help employees perform well
    $\newline$

  • 80% agree that more training leads to higher productivity
    $\newline$

  • 81% think sociocultural factors affect performance.
    $\newline$

  • 95% think that training helps in learning new skills
    $\newline$

  • 63% think companies make the workers learn new skills and techniques which could be helpful for them to adjust in any company
    $\newline$

  • 40% people think techniques which the companies taught to the employees aren't helpful for employees after leaving the company
    $\newline$

  • 65% said training help to maintain a good relationship between employee and employer
    $\newline$

  • 95 of the people think that the training do not help the company to maintain a good relation between the employee and the employer.
    Companies should arrange training sessions more frequently and address factors that hinder employee performance.

• Responses to Statements:

Chapter 4: Conclusion

• 4. 1 Conclusion

  • A positive relation exists between performance of employee, job satisfaction of employee and training and development the training not only increase productivity, but employee also become more satisfied from their interpersonal skills, team work skills, confidence, technical skills and work motivation increase.

  • Employee performance is measured by their knowledge, skills, and abilities.

  • When employees perform well, this not only benefits the employee but also the organization.

  • If training and development is not given properly training and development can a negative impact and the can hinder the performance of the employees.

  • The more an organization spend on training, the more their productivity is increased.
    For facing competition and for dealing with challenges like employee turnover, decreased productivity, and for improving work related behavior organization must focus on improving employee skills.

  • Training and development also effect job satisfaction.

  • Job satisfaction is positively related to employee productivity and it has a negative relation with employee turnover.

• 4.2 Recommendation

  • Problem discussed in this research is that why there is no positive impact on employee performance even when training and development is provided to them.

  • There are many reasons behind this and factors such as wrong need assessment, lack of motivation in employees, employees lack of interest, cultural differences these are some factors which can cause no positive change in productivity even when 4 training and development is provided.

  • and When organizations focus on these issues and make sure that these factors will not affect training and development then with right training provided there is a positive impact of training and desired outcome is achieved.

  • Some recommendation that can be provide are:

    • Training need analysis:

      • Management should timely find what skills employee are lacking which can be beneficial for organization and where need of training actually exists

      • There are 3 states of conducting this:

        • Organizational Analysis, Work Analysis, Individual analysis

    • Two way feedback:

      • Two way feedback process should be made compulsory, in this way management have an idea that what employees have learned from training and how training have benefited them, and what skills they have developed

      • And employee when given feedback they have an idea about how well they have worked
        Cultural difference: to overcome the barriers caused from the cultural difference the management should gather the information about their potential learning audience and provide them the the training according to there learning style

  • Need Assessment: Should be performed to determine what training is needed.

  • Management should focus on factors such as employee background, preference and experience before providing training and development.

  • Employee should be trained in a way that they know how to interact with co-workers.
    Most of employees don’t know what is work place behavior is, they should provide training on what business etiquettes are and what work place ethics are. Employee should be ideally trained for specific tasks.

• Not every employee has effective communication but with training is can be improved, trainer should focus on giving training to improve soft skills, trainer should also focus on employee conflict management and resolution abilities.

• 4.3 Limitation

  • Limitation depends upon various resources and circumstances which are given below:

  • This research has been conducted in short duration of time which is 7 to 8 weeks.

  • The geographical area limitations also faced because study includes only one city.

  • This research has been conducted on a specific organization. (AL-Ghazi Tractors Ltd)

• 4. 4 References

  • Abogsesa, A. S., & Kaushik, G. (2017). Impact of Training and Development on Employee Performance: A Study of Libyan Bank. International Journal of Civic Engagement and Social Change (IJCESC), 4(3), 53-68. http://doi.org/10.4018/IJCESC.2017070104

  • Abbas, Q., & Yaqoob, S. (2019). Effect of leadership development on employee performance in Pakistan. Pakistan Economic and Social Review, 47(2), 269-29

  • Armstrong’s Handbook of Human Resource Management Practice. 11th Edition, Kogan Page Limited, London.

  • Hamblin, A.C. (1974) Evaluation and Control of Training. McGraw Hill.

  • Cole, G.A. (2016) Personnel and Human Resource Management. 5th Edition, York Publishers, Continuum London.

  • Saleem et el (2016) HRM Practices and Organizational Commitment: Test of a Mediation Model. Canadian Journal of Administrative Sciences, 17, 319-331. http://dx.doi.org/10.1111/j.1936-4490.2000.tb00231.x

  • McDowall, A. and Saunders, M.N.K. (2015) UK Manager’s Conceptions of Training and Development. Journal of European Industrial Training, 34, 609-630. http://dx.doi.org/10.1108/03090591011070752

  • Imran, M., & Tanveer, A. (2015). IMPACT OF TRAINING & DEVELOPMENT ON EMPLOYEES’PERFORMANCE IN BANKS OF PAKISTAN. European Journal of Training and Development Studies

  • Hameed, A & Waheed,2016. Employee development and its effect on employee performance a conceptual framework. International journal of business and social science, 2(13), 224-229

  • Hafeez, U., & Akbar, W. (2015). “Impact of Training on Employees Performance” (Evidence from Pharmaceutical Companies in Karachi, Pakistan). Business Management and Strategy, 6(1), 49-64. http://www.dx.doi.org/10.5296/bms.v6i1.7804