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CHAPTER ONE
Introduction
1.0 Background of the study
Human Resources have played a significant role in the economic development in most developed countries such as United States of America, Britain and Japan among others. It can, therefore, be stated that a developing country like Nigeria, with its rich natural resources and the necessary financial support can also experience such economic success if the appropriate attention is given to the development and training of her human resource. It is observed that in Nigeria, the government is taking adequate steps to ensure that people acquire the necessary knowledge and skills.
The provision of secondary and technical schools, vocational training institutes, colleges, professional and tertiary institutions, as well as the educational reforms currently taking place in the country, are all geared towards the acquisition of skills and knowledge to ensure effectiveness and efficiency in our workplaces. With these efforts by the government, it has become necessary for organisations to provide long and systematic training and development programs for their employees. This is because every aspect and activity of an organisation involves people. For instance, a manager in an organisation will not be successful until he has his subordinates who are well equipped with skills, talent and knowledge.
In other to manage an organisation, both large and small requires staffing with competent personnel. The formal educational system does not adequately teach specific job skills for a position in a particular organisation. Few employees have the requisite Skills, Knowledge, Abilities and Competencies needed to work. As a result, many require extensive training to acquire the necessary Skills, Knowledge, Abilities and Competencies to be able to make substantive contribution towards the organisation’s growth.
If employees are to experience flexibility and effectiveness on the job, they need to acquire and develop knowledge and skills, and if they are to believe that they are valued by the organisation they work for, then they need to see visible signs of management’s commitment to the their training and career needs. Training and development are the processes of investing in people so that they are equipped to perform. These processes are part of an overall human resource management approach that hopefully will result in people being motivated to perform.
It goes therefore that training and development of employees are issues that have to be faced by every organisation. However, the amount, quality and quantity of training carried out vary enormously from organisation to organisation. According to Cole, factors influencing the quantity and quality of training and development activities include; the degree of change in the external environment, the degree of internal change, the availability of suitable skills within the existing work-force and the extent to which management see training as a motivating factor in work.
Many organisations meet their needs for training in an ad hoc and haphazard way. Training in those organisations is more or less unplanned and unsystematic. Other organisations, however, set about identifying their training needs, then design and implement training activities in a rational manner, and finally assess results of training. It is worth noting that Nigeria has a huge private sector, employing the highest number of human resources with varied skills. One such organisation in the private sector is Sterling Bank. The study intends to investigate the impact of training and development on employee performance and profitability in the bank industry in Sterling Bank.
1.2 Statement of the problem
It is a well-known fact that training enhances Skills, Knowledge, Abilities and Competencies and ultimately worker performance and profitability in the bank industry (Cole, 2002). Many organisations in private sector engage in training and development of staff and have departments, units and sectors in charge of training and development. Sterling Bank is among such an organisation that have been practicing training and development since its establishment.
1.3 Objective of the study
1.3.1 General Objective of the study
The study is to evaluate the impact of training and development of workers’ performance and profitability in private sector.
1.3.2 Specific objectives of the study
The specific objectives of this study are to:-
1. To examine the effectiveness of training on development on workers’ performance
2. To compare the cost effectiveness in implanting training and development
3. To measure the differential change in output due to training and development
1.4 Research Questions
1. Can the performance of the employees be improved through training and development programmes?
2. What are the benefit of training and development on worker’s performance?
3. Can training and development increase profitability in the bank industry?
1.5 Hypothesis
Hypothesis 1
H0: There is no impact of training and development on workers’ performance and profitability in Sterling Bank.
H1: There is impact of training and development on workers’ performance and profitability in Sterling Bank.
Hypothesis 2
H0: Training and development cannot be effectiveness
H1: Training and development can be effectiveness
Hypothesis 3
H0: Training and development cannot increase performance and profitability
H1: Training and development can increase performance and profitability
1.6 Significance of the study
It is expected that the study will advise Management of Sterling Bank and other organisations that workers’ needs to be motivated for their retention, job improvement and incline in productivity through Training and Development programmes.
1.7 Scope of the study
The study is limited to the selected branch of Sterling Bank in Lagos State.
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