Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 2, No.

4, 2014

IMPACT OF TRAINING AND DEVELOPMENT ON THE EMPLOYEE

PERFORMANCE: A CASE STUDY FROM DIFFERENT BANKING
SECTORS OF NORTH PUNJAB

1
Maryam Sohail, 2Naveed Ahmad, 3Nadeem Iqbal, 4Zeeshan Haider, 5Naqvi Hamad
1
Student at Hailey College of Commerce, Punjab University Lahore, Pakistan
21
Faculty of Management sciences, Indus international institute, D. G. Khan, Pakistan
3
Faculty of Management Sciences, Baha Uddin Zakariya University Multan, Pakistan
4
MBA student Baha uddin Zakariya University, Pakistan
5
PhD statistics Govt. Postgraduate College D. G. Khan, Pakistan

Abstract
The purpose of this study is to find out the impact of employee training and
development on employee’s performance. The results show that significant
positive relationship exists between employee training and development and the
employee performance. The statistical population of this study is Banking Sector
of northern Punjab which covers 100 employees of 11 banks and data was
collected through a questionnaire. Regression analysis was used through
“SPSS” for data analysis. There are two determinants of employee training and
development which are on job Training and Delivery style. Results show the
Positive relationship between on job Training and Employee Performance and
also there is the Positive relationship between Delivery style and Employee
Performance.

Keywords: Employee performance, Employee Training and Development, On-

job Training, Delivery Style.

1. Introduction:
In this paper we will find the relationship of training and development on employee
performance and also check the impact of on-job training, delivery style and how they effect
on employee performance after providing all these factors during training and we know In
early age especially after 2nd world war the organization have come to know that without
training they cannot get success, then the organizations started emphasizing on training, First
organizations in United State started giving training to their employee, In 1910s, some
corporations ( General Electric, Westinghouse, International Harvester) were having factory
schools to train their employees in order to develop their technical skills as they realized the
importance of training and development. Although few researchers disagree about the
importance of training and development on the success of organization because it involves
huge cost that may affect prioritization. Training plays significant role in achieving
organizational objectives by keeping in view the interest of employees and organization
(Stone J.R. human resource 2002). To achieve the organizational goals employee
performance is important that depends on a variety of factors. But training receives high
importance as it improves the skills, capabilities, confidence and competencies. Training

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Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 4, 2014

includes 'soft' skills such as software training, management training. Whereas development
focuses upon the activities that enhances employee skills for future. Employee development
is a long term process that comprises, mentoring, succession planning, coaching etc.
In short to achieve the organization goals role of human capital leads to organization growth
and development and human capital is totally related with training, if your employee is
trained he/she can better perform in organizations. The main purpose of our study is to
determine the effect of training and development on organizational performance.
Organizations should focused more on training than on cost control and efficiency because
organization cannot get effectiveness without training and development.
1.1. Objectives of study:
 To observe the impact of Training and Development on employee performance.
 To observe the impact of job training on employee performance.
 To see the impact of Delivery style on employee performance.
1.2. Research Questions:
 Is there positive relationship exists between Training and Development on employee
performance?
 Is there positive relationship exists between on-job training and employee
performance?
 Is there positive relationship exists between Delivery style and employee
performance?

2. Literature Review:
Employees are the most valuable assets of every organization, because a skilful work without
Human capital is not possible getting these things in mind every organization is investing a
huge capital in training and development. According to Khan et al (2011), on job training,
training design & delivery style has positively related with organizational performance as
measured by empirical data. According to iftikhar ehmad and siraj-ud-din (2009) in health
industry training and development has role like a back bone, it enhances the performance of
employee. Thomas j. Watson (founder of IBM) said about the human resource, “you can get
capital and erect buildings, but it takes people to build a business a business”. Organizational
goals without human resource cannot be achieved; most of the jobs have such type of
orientation which cannot be performed without human capital.
According to Flynn et al., (1995) on the job training reduces cost and saves time. You can
give training in your organization for assigning the duties of senior employee, juniors are
attached with senior one for some time they learn and trained there. Important part of
Training and Development is Delivery style (Carlos A. Primo Braga, 1995). According to
Ohabunawa (1999) those organizations who train their employee well, managers and superior
have the confidence to get the authority and to deal with their subordinates. Abiodun (1999)
said that, through training employees can get knowledge, skills, and attitudes which are the
requirement of employees to perform their task adequately. Stephen & Bowley‟s (2007)
study shows the link between employee productivity and training which further leads to
employee performance. Baldwin & Johnson (1995) claim that lower levels of training will
increase the chances of employee migration from one organization to another. However,
employee’s satisfaction and loyalty increases by higher degree of training towards the firm
and decreases the chances of employee termination. (Choo & Bowley, 2007).
According to Chandrasekar K (2011) workplace have two types of impact on employee’s
moral, productivity and engagement positive and negative, if you give a good work
environment the effect will be positive. According to Ceylan D, et al (2010) innovation of
product and process and also in organization and employees creativity is directly related with
the environment. According to Keeling and Kallaus (1996) ergonomics is the study of

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Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 4, 2014

physiological factors such as colour, sound light, and temperature are directly related with the
space, furniture, and equipment, in order to meet better psychological criteria among workers
or trainers. Without any pre-training employee cannot perform easily (Thomas N. Garavan,
1997). As compared to untrained employees trained employees perform well. (Partlow, 1996;
Tihanyi etal., 2000; Boudreau et al., 2001). Organizational goals can be achieved effectively
if employees of those organizations are provided sufficient training and development (Flynn
et al., 1995; Kaynak, 2003; Heras, 2006). Furthermore through training and development the
performance of employees increases (Shepard, Jon et al., 2003). Training and development
programs are expensive but it payback more than it costs to organizations (Flynn et al., 1995;
Kaynak, 2003; Heras, 2006). Each corporation should focus on training and development in
order to better compete in present era of competition. Training and development has
significant role for the development of employee’s performance. According to Partlow,
(1996); Tihanyi et al., (2000) and Boudreau et al., (2001) training should be designed
according to the need of employee and organizations which perform these things get better
results. The design of training should be according to the needs of the employees (Ginsberg,
1997).
2.1. Hypothesis:
On the basis of the literature review and model specification authors develop these
hypothesis.
H1: There is significant positive relationship between Training and Development and
employee performance.
H2: There is significant positive relationship between on the job training and employee
performance.
H3: There is significant positive relationship between Delivery style and employee
performance.

2.2 Conceptual Framework:

Training & Development Employee Performance

On job Training
Delivery style

Figure 1.1

3. Methodology:
A self administrative questionnaire was prepared for this particular study on five point Likert
scale. Questionnaire was prepared in English language and it was distributed among different
experts to maintain content validity. A total of 100 questionnaires were distributed among
respondents of 11 banks of two districts Multan and Bahawalpur of Punjab province Pakistan.
For data analysis purpose SPSS 20 version was used.

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 Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 4, 2014

4. Analysis
H1: Results of regression analysis are given in below table, as it is clear from table that for
hypothesis 1, the value of beta is =0.970 that is positive and shows positive change in
dependent variable due to independent variable training and development. The value of t is
5.9408 that is significant and similarly P value is less than 0.05 so these results are providing
sufficient grounds to accept hypothesis 1. So null hypothesis is rejected and alternate H1 is
accepted.
H2: Results of regression analysis are given in below table, as it is clear from table that for
hypothesis 2, the value of beta is = 1.003 that is positive and shows positive change in
dependent variable due to independent variable on-job training. The value of T is 38.176
that is significant and above the average value 2, similarly P value is less than 0.05 so these
results are providing sufficient grounds to accept hypothesis. So null hypothesis 2 is rejected
and alternate H2 is accepted.
H3: Results of regression analysis are given in below table, as it is clear from table that for
hypothesis 3, the value of beta is = .984 that is positive and shows positive change in
dependent variable due to independent variable delivery style. The value of T is 24.245 that
is significant and above the average value 2, similarly P value is less than 0.05 so these
results are providing sufficient grounds to accept hypothesis. So null hypothesis 3 is rejected
and alternate H3 is accepted.

Table 1: Results of Regression

Hypo- Variables Standardized Regression T-Value P-Value Significant/
thesis Weights In-significant

H1 Employee training .970 5.9408 .0000** Significant

H2 On job training 1.003 38.176 .0000** Significant
H3 Delivery style .984 24.245 .0000** Significant

Table 2: Descriptive Statistics:

Descriptive Statistics
Mean Std. N
Deviation
Training 4.6517 .47443 100
Job 4.6200 .46966 100
Style 4.6150 .45794 100
Performan 4.6567 .48653 100
ce

5. Discussion and Conclusion:

The learning can be accomplished in terms of the trainings of employees. Training and
development has positive effect on employee performance. First of all our purpose of this
study to investigate in measuring training needs of the employees at Government sectors,
because in Pakistan all the Government sectors are facing terrible downfall and we find
through this research that even there is no concept of training and development although on-
job training is provided at some extent but not in a proper way and when we observe in

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Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 2, No. 4, 2014

private sector a huge investment is spend on training it shows the importance of training and
the progress of these organization.
Secondly after evaluation of employee’s orientation on delivery style and on-job training we
conclude that most of the respondent (%) answered that training and development is the
necessary part of the organization, even from the analysis of employees of different
organization likes to get training in their free time.

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