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EXAMINING THE ROLE OF TRAINING ON ORGANIZATION PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Training of employee has become a major pre-occupation in
modern organizational objective of growth. To achieve this basic objective of
growth and profitability, it means that management as well as employees must improve
their input into the organization. This is because the performance of an
organization is a function of the collective performance of employees. Garavan,
Costine and Herathy (1995:47) opine that there are many critical factors which
organizations must consider as they face the future. This alone implies that
the success of an organization depends on who works to achieve the
organization’s objective, that is, the presence of qualified manpower.
Training is effort initiated by an organization to foster learning
among its workers, and development is effort that is oriented more towards
broadening an individual’s skills for the future responsibility. (George &
Scott, 2012). Training and development are a continuous effort designed to
improve employees’ competence and organize performance as a goal to improve on
the employees’ capacity and performance. Human Resource Management has played a
significant role in the economic development of most developed countries like
Britain America and Japan. In a developing country like Cameroon, with its rich
natural resources and financial support, one can also experience such economic
success if the appropriate attention is given to the development and training
of her human resources. Every aspects and activities in an organization
involves people. For instance, a manager will not be successful if he has
subordinates who are not well equipped with skills, knowledge, ability, and
competence (SKAC).
To run an organization, be it big or small, requires staffing
the organization with efficient personnel. Specific job skills, ability,
knowledge and competence needed in the workplace are not efficiently taught `in
the formal education. As such, most employees need extensive training to ensure
the necessary SKAC to bring out substantive contribution towards the company’s
growth. For employees to be flexible and effective in their job, they need to
acquire and develop knowledge and skill, and for them to believe that they are
valued by the organization they work for, then they need to see valuable signs
of management commitments to their training needs. Each new employee must be
properly trained not only to develop technical skills, but to make them an
integral part of the organization. Training and development is an aspect that must
be faced by every organization, and its major aim is to improve the employees’
competencies such that the organization can maximize effectiveness and
efficiency of their human resources. It can be an advantage for an organization
if they win the “hearts and minds” of their workers, getting them to identify
with the organization (Armstrong, 2009). For workers to be equipped to perform
well, there must be an investment in the training processes. These processes
are part of the entire human resource management approach which results in
employees being motivated to perform. However, training vary from organization
to organization in relation to the quality and quantity of training factors,
which may include: the degree of external environment change, the degree of
change in the internal environment, current suitable skills in the existing
work force and the level to which the management see training as a motivating
factor in the workplace, (Cole, 2002).
One would add that training is a set of activities, whereby,
practitioners, managers or would be managers are assisted in improving their
individual competence and performance as well as the organization’s environment
with the ultimate goal of raising the standard of organizational performance.
It therefore follows, that employee training and development are at the heart
of employee utilization, productivity, commitment, motivation and growth. An
organization may have employees that are determined with appropriate equipment
a managerial support, yet employee performance falls below expected standards.
The missing factor in many cases is lack of adequate skills and knowledge,
which are acquired through training, Ubeku (1995:10) sees human resource
management as a control function exercised by all managers in an organization
and/or by a particular department often designated as personnel or human
resources. It is therefore, important that the need for training be identified
and provided for. It is an indispensable part of management function in terms
of operational efficiency and effectiveness. This is because an organization
which puts great emphasis on employee training is directly planning for its
survival and steady growth.
Employees’ performance depends on many factors like job
satisfaction, knowledge and management but there is relationship between
training and performance (Khan, Khan, & Khan, (2011). This shows that
employees’ performance is important for the performance of the organization and
that training and development is beneficial for the employees to improve their
performances. This can only be possible if the employees are effective on their
job therefore, training and development of employees is inevitable.
Training is
important for the employees’ development and the employees’ development encourage
self-fulfilling skills and abilities of the employees, decreased operational
costs, limits organizational liabilities and changing goals and objectives
(Donald, 2009). It is very difficult for an employee to perform well at the
workplace without any pre-training (Garavan, 1997). Trained employees perform
better than the untrained ones (Adenuga, 2011). As a result, it is very
necessary for every organization to train its employees in order to meet
overall goals of the organization. Training and development, and on the job
training have significant effect on organizational performance (Khan, Khan,
& Khan, 2011). However to improve employees’ knowledge and skills,
employees must also develop a greater self-efficacy and confidence in
performing their job.
1.2 STATEMENT OF
THE PROBLEM
The issues of employee training were not taken seriously by
many organizations this is because of the failure to acknowledge the fact that
the business environment has become very dynamic and only those organizations
with the right manpower to meet the modern technological and informational need
in the business times can succeed in the globalized business world.
Training is paramount to the success of any modern
organization, for organization to compete effectively it must train its
manpower to meet with the requirements for sustainability. However,
organization that do not train or embark on inadequate training encounter
certain problems, these include low performance, poor coordination, increase
labor turnover, inadequate manpower low capital base, loss of market share, and
the inability to cope favorably with the technological and informational
demands of the business environment.
To sustain capable, experienced and qualified employees in an
organization, provision of adequate training and development cannot be
compromised. The prevailing dynamic nature of banking sector demands adequate
strategy in improving quality, customer services, productivity and innovations
through skills acquisition techniques. Of recent, banking sector faces barrages
of problems ranging from electronic fraud, ineffective performance leading to
their merger and acquisition, which in-turn led to some employees’
retrenchment. These challenges portray the sector’s dire need of highly skilled
bank employees that are up to the present challenges, hence, the employees need
training and re-training for effective functioning.
The major problem of the bank is how to retain and remain in
the leadership position in the years of its existence, hence the need for
training policy that will bring improve quality services. The problem also
stems from the fact that the bank is yet to evolve the philosophy of training
and development which implies that there must be management, employee
commitment and team work for quality training, also Inadequate funding of
training, failure to engage credible professional trainers and adequately brief
trainers on the specific trends in the bank. The management of the bank should
be able to spend huge amount of money on training and development of staff as
well as acquiring seasoned personnel with a view to realizing the set
objectives of the bank.
1.3 OBJECTIVES OF
THE STUDY
The general objective of this study is to examine the role of
training on organization performance in First Bank PLC, a case study of Ifo LGA
of Ogun state. The specific objectives include the following:
1. To determine the
practice of employee training in First Bank PLC.
2. To find out the
implication of employee training on the productivity of First Bank PLC.
3. To determine the
nature of relationship between training and organizational growth.
4. To evaluate the
extent to which training results to employee job satisfaction.
5. To examine the
effect of training on employee capacity and self-confidence in First Bank PLC.
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