IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEES PERFORMANCE
(A CASE STUDY ON DASHEN BANK)
A SENIOR ESSAY SUBMITTED TO THE DEPARTMENT OF MANAGEMENT IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF BACHELORS OF ART (BA) IN MANAGEMENT.
Submitted by: Tesfahun Shiferaw
Id No CBE/UR/1175/01
Submitted to: Teshome Desta
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MEKELLE UNIVERCITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTEMENT OF MANAGEMENT
June, 2011
MEKELLE, ETHIOPIA
ACKNOWLEDGEMENT
It has become the willingness of God, the merciful, the almighty and the most passionate to finalize this paper.
I would like to express my heart –felt appreciate and gratitude to my advisor Mr. Teshome Desta for his critical reading of the
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budget for training and development………………………………………….……………
Table 3.6. training materials ……………………………………………………………………….…………..
Table 3.7. adequate time for training…………………………………………………………..………….
Table 3.8. groups for training……………………………………………………………………….………….
Table 3.9.relevance of training……………………………………………………………………..…………
Table 3.10. impact of training and development……………………………………………………..
Table 3.11. training and development for increasing performance ……………….………..
CHAPTER ONE
INTRODUCTION
1. BACKGROUND OF THE STUDY
Organization as a system use different types of resources including materials, finance, information, and human resource, among these resources human resource is the engine that helps the organization to meet its goal. As this time to be in copes up with-the competitive environment, organizations require making a decision of choosing appropriate training and development strategies to capitalize its human resources. Human resource training and development is a key factor for organizational success and effectiveness. Carefully designed and executed training is not a cost but an investment with encouraging returns and an instrument for preparing the staff for further and sustainable development. (oljira 1999:14) Many organizations including banks need to train and develop their human resources that help them vigorously win the challenges
Most organizations do not follow-up on the benefits of training as regards staff performance. As a result of this they don’t take training and development as an important factor in organizational growth and survival. Most manages do not know how to assess the return on investment in training, nor are they equipped with the necessary management tools to monitor the decision making process of such investment. It has been discovered that training and development budget is the first cut when the organization is faced with difficulties because most of them are of the opinion that investment in the area of training and development is not linked to the bottom line of the business. Globalization and rapid technological development has changed the conditions for companies and increased competition in the world markets. The quality of a company’s human resources is the key driver for sustained top-level performance. It has become crucial to continually invest in human resource development in order to guarantee success in the global market. As earlier said, managers engage in minimal training thereby not giving quality training to their employees, this in turn affects the overall outcome of the training and the performance of the staff. Most organizations that have a competitive image see more reasons to train their workers than those who are on the lower rung of the ladder of recognition, but training and development is still needed to create a niche. In the light of the above,
An Honours Degree Project Submitted to the School of Business in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)
It is necessary for human resource management to have a proper human resource planning. “Human resource planning involves planning that assure a firm’s needs for employees”, says Madura. She also includes that human resource planning consists of three tasks which are forecasting staffing needs, job analysis (Madura, 2007). Recruiting and selecting the right employee is not enough. There is a necessity to provide continuous training and development to the employees to be more productive and efficient. With great training, it enables the employees to be more innovative, creative, motivated and thus increase their working performance. Training can be through various types such as on the job training, off the job training, job rotation and scholarships.
Training and development are very important to every organization because it can increase the effectiveness of the organization. Training is a program to increase an individual’s knowledge, skill, and ability lead to increase performance on
Human Resource Development is vital for an organisation that would like to be active and productive. Human Resource compared to other resources, it has a rather absolute hidden capabilities. This can be used in development of people. Human Resource Development helps to readjust to changes through the development of human resource in terms of ability and skill so Human Resource is needed to cultivate the change in external environment of an organization. (Accounting-Management, 2015) It is a methodical process in which individual or groups are cultivated to obtain new competencies and make them more independent and enhance their effectiveness in realizing their goals.
The question appears to make assumptions that some organisations and individuals are reluctant to invest in training despite the fact that there are some obvious benefits for both firms and employees with training and development. This essay will explain the meaning of training and development, highlight the positive impacts that training and development have on the performance of employees and organisations, as well as the reason both employees and firms are reluctant to investing in it. Some authors have argued that there is little or no difference between training and
Employee training and career development programs are an essential function of a human resources department. Organizations need to employ workers who can adjust well to the company and appropriately train them to serve the company’s objectives. An organization uses various methods of training to ensure employees will satisfy the organizational needs of the company. A focus on employee development in relation to organizational development is the primary goal of a company in achieving successful results. Career development helps an organization with the future human capital needs as well as creating and maintaining employee
The role of training is based on providing the specific skill sets and operational abilities to increase performance standards for an organization. Human resource managers are required to understand the various types of training processes, which can help at the microcosmic and macrocosmic level of advancement for the employee or manager. These skills are essential to having a continuing dialogue on improving employee performance and encouraging growth in various levels of the organizational platform. The role of training can also teach new skill sets to already advanced employees, which involves keeping abreast of new innovations and developments in the firm’s competitive stance in
Employee training is essential to the organization because it helps the employees improve their performance. Secondly, excellent employee performance helps the organization’s success. It is very important that the management provide necessary training to those employees who needs improvement. In order to determine the need of employee training, the management must provide several steps. This includes, conducting analysis, establishing goals and objectives.
Training and development are activities organizations use to increase the performance of its employees. Organizations use new techniques and knowledge to improve the attitudes, skills, and techniques of the employees in order to improve daily responsibilities. Training and development are essential to every field in the business industry. Training and development are required to be successful in the business environment. Employees are able to keep up with trends and technology as they change. Training and development has positive effects that impact the success of organizations. Employees adapt to new technologies, employee morale and motivation is increased, productivity and efficiency is increased, and decreases liability.
Employee is an important assets in determine the successful and well-being of a company. Stagnant and incompetent employee will cause a company unable to compete with its rival and worst the company might be underperform and suffer great loss. Training plays an important role in enhancing or develops employee skills, ability, knowledge and attitude to increase their performance and competencies. Without training, the performance of employee is poor and organization will affected. According to Ho (2003), he stated that organization often thinks that training is costly to conduct buttraining can be view as an investment to achieve higher productivity in the organization. By conducting a systematic and well-plan training it can develop a satisfaction and meet the needs of employee to perform their job better in future. Besides that, a proper training will give both organization and employee benefits such as better quality work environment, provides a challenge whereby the employee have a chance to learn new things and ensure the goal and objectives more effectively met (Buckley, 1991). There are three practices methods that often being used by the Human Resource to conduct a training program in their organization which are classroom lecture method, coaching and on the job training.
The world is rapidly changing and to be a success, there must be maximum use of all resources (physical, financial, information, and human resources) whether for a nation, organization or individual. After huge investments in the physical, financial and information and knowledge resources, the human resources which comprises the workforce of an organisation remains the leverage point where significant differences can be made in the lives of the employees, their careers and the organisation.
Motivational training in an organization can be introduced across three stages in company i.e. administration of the environment of industry, the organizational level and the individual level, where training will be focused on the performance of the companies as well as the individuals. Porter (1980) asserts that each level is separate in its own application. He highlights key points and identifies the role of general managers in managing motivational training at each respective level and its correlation.
Manpower Training and Development is a very important aspect of human resources management which must be embarked upon either proactively or reactively to meet any change brought about in the course of time. The rationale behind it is to web the job and the job-holder together to achieve the organizational objectives.
Thesis submitted to the Institute of Social Sciences in partial fulfillment of the requirements for the degree of Master of Arts in Management by Mehmet ŞANAL Fatih University