EFFECT OF EMPLOYEES TRAINING ON ORGANIZATIONAL PERFORMANCE IN SOFT DRINKS BOTTLING COMPANIES IN ENUGU STATE, NIGERIA

EFFECT OF EMPLOYEES TRAINING ON ORGANIZATIONAL PERFORMANCE IN SOFT DRINKS BOTTLING COMPANIES IN ENUGU STATE, NIGERIA

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ABSTRACT
The study focused on the effect of employee training on organizational performance. The
process and procedure of identifying employee skill gap in most organizations pose a big
challenge to the Human Resource Department (HRD). Employee training is based on
various reasons which could be detrimental to the overall objective of the organization.
The HRD ensure that sending an employee on training will translate to increase in
productivity. Thus, adequate consideration should be taken by the HRD when selecting a
candidate for training. The ability to manage and work around the challenges faced when
carrying out this HR function will ensure a better training objective that will affect the
productivity of the employee and the organization. Since the effect of these factors brings
with it some negative implications and consequences of low productivity, high rate of
employee turnover and high cost; this study therefore was aimed at identifying the effects
of employee training on organizational performance with special emphasis on the
process and procedure of selecting employee for training. Pursuant to this, some
objectives were formulated by the researcher and these were to ascertain the extent to
which unsystematic approach of employee training affects organizational productivity; to
determine the extent of effect of training design on employee productivity; to ascertain
the extent to which training delivery style affects employee productivity; to determine the
relationship between employee perceptions of training and organizational productivity;
and to determine the extent to which employee training affects organizational
performance. In pursuit of the objectives, a survey research was carried out in Enugu
State, Nigeria. The population used for the study was 694 staff of Nigerian Bottling
Company and 7UP Bottling Company. Sample size was determined using Yamane (1964)
formula. A sample size of 254 was drawn. The study made use of data from primary and
secondary sources which were collected using questionnaire administered to the 254 staff
of the selected Organizations. Personnel records and annual reports of the selected
Organizations were used for secondary data. The data analyses was carried out using the
Statistical Package for the Social Sciences (SPSS), while the person product moment
correlation coefficient and the one-sample test were used to test the hypotheses
formulated in the study. Findings from the study reveal that the extent to which
unsystematic approach of employee training affected organizational productivity was
high. This was statistically supported by the one-sample test at 0.05 (Zc = 8.246 < Zt =
0.000). Again, the extent of effect of training design on employee productivity was high.
The one-sample test (Zc = 0.679 < Zt = 0.730; a= 0.05) confirms this assertion. The
extent to which training delivery style affected employee productivity was high as attested
to by the result of one-sample test (Zc = 0.681 < Zt = 0.762; a= 0.05). Similarly, there
was a very strong positive relationship between employee perception of training and
organizational performance. This is confirmed with the Pearson Correlation coefficient
value of 0.948 at 0.05level of significance. The extent to which employee training alone
affected organizational performance was low, however, when other variables like
training design, training delivery style were considered, its effect became significant.
This is confirmed by the one-sample test at 0.05 (Zc = 0.705 > Zt = 0.665). Based on the
finding, the study concludes that if the right employees are sent on training through the
systematic training procedure of identifying and selecting employees for training, there
would be a significant improvement on the organizational performance. Finally, it is
recommended that a mechanism should be created for proper assessment and evaluation
of employee performance after training as this will ensure that only employees who
require training are sent on training.
viii
TABLE OF CONTENTS
Declaration ii
Approval iii
Dedication iv
Acknowledgements v
Abstract vii
Table of Contents viii
List of Tables xii
List of Figures xiv
Chapter One 1
Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Hypotheses 5
1.6 Significance of the Study 6
1.7 Scope of the Study 6
1.8 Limitations of the Study 7
1.9 Operational Definition of Terms 7
References 8
Chapter Two 9
Review of Related Literature 9
ix
2.1 Overview of the Effect of Employee Training on Organizational Performance 9
2.2 Conceptual Framework 10
2.2.1 Purpose of Training 11
2.2.2 Types of Training 13
2.3 The Concept of Psychological Contract 14
2.4 Theoretical Framework of Employee Training 15
2.5 Theoretical Models Linking Training to Organizational Performance 16
2.6 Successful Models of Training and Development 18
2.6.1 ADDIE Instructional Design Model 18
2.6.2 Human Performance Technology (HPT) 21
2.6.3 Performance-Based Instructional Design (PBID) 22
2.6.4 Total QualityManagement (TQM) 23
2.7 Learning Theories 23
2.8 Identification of Training Needs in an Organisation 24
2.8.1 Training Needs Assessment 25
2.8.2 Benefits of Training Needs Assessment 26
2.9 Training Design and Organizational Performance 26
2.10 Implication of Training Delivery Style on Employees Performance 28
2.10.1 Methods of Training 28
2.11 Difference between Training and Development 32
2.12 Human Resource Management (HRM) Process vis-à-vis Employee Training 34
2.13 Non-Systematic Approach of Training 35
2.14 Systematic Training Process 36
2.15 Empirical Framework of Training on Organizational Performance 38
x
2.16 Effects of Employee Training on Employee Motivation vis-à-vis Organizational
Performance 41
2.17 Measuring the Impact of Training on Organizational Performance 42
2.17.1 Organizational Performance Measurement 43
2.17.2 Employee Performance Indicators 44
2.18 Productivity 47
2.18.1 Measures of Productivity and Profitability 48
References 51
Chapter Three 57
Research Methodology 57
3.1 Research Design 57
3.2 Sources of Data 57
3.2.1 Primary Source 57
3.2.2 Secondary Source 57
3.3 Population of the Study 57
3.4 Determination of Sample Size 58
3.5 Sampling Method 59
3.6 Validation of the Research Instrument 60
3.7 Reliability of the Research Instrument 60
3.8 Data Analysis Techniques 60
3.8.1 Decision Rule 61
References 62
Chapter Four 63
Presentation, Analysis and Interpretation of Data 63
xi
4.1 Presentation of Data 63
4.2 Hypotheses Testing 88
4.3 Discussion of Findings 95
References 98
Chapter Five 99
Summary of Findings, Recommendation and Conclusions 99
5.1 Summary of Findings 99
5.2 Conclusion 99
5.3 Recommendations 100
5.4 Contribution to Knowledge 101
Bibliography 103
Appendices 111
Appendix A: Questionnaire 111
Appendix B: Interview Schedule 115
Appendix C: Calculation of the Reliability of the Research Instrument 117
xii
LIST OF TABLES
Table 1: Comparison of principal characteristics of training and development 33
Table 2: Population of the study 58
Table 3: Stratum representation of sample size 59
Table 4: Respondents’ Age 63
Table 5: Sex Distribution of Respondents 64
Table 6: Respondents Educational Qualification 65
Table 7: Respondents’ Job Position 66
Table 8: Respondents Duration of Employment 66
Table 9: Reasons for sending employee on training 68
Table 10: Immediate supervisors and the HR influence on the selection of an employee
for training 69
Table 11: Effect of discrimination in selecting employees for training 70
Table 12: Extent to which unsystematic approach of employees training affect
organizational productivity 71
Table 13: Good training design ensures that identified employee skill gaps are properly
captured 72
Table 14: Extent to which training design affects organizational performance 73
Table 15: Importance of training design on employee performance 75
Table 16: Bad training design results to waste of resources on employee training 76
Table 17: Training delivery style ensures that the objective of employee training is
achieved 77
Table 18: Extent to which training delivery style affects employee performance 78
Table 19: Employee poor performance as a result of poor training delivery style affects
organizational performance 79
xiii
Table 20: Employee perception of training is correlated to organizational performance 81
Table 21: Level of correlation between employee perception of training and
organizational performance 82
Table 22: Post training performance and organizational performance 83
Table 23: Degree of post-training performance confidence 84
Table 24: Employee training affects organizational performance 85
Table 25: Extent of employee training effect on organizational performance 86
Table 26: Relationship between employee training and employee performance 87
xiv
LIST OF FIGURES
Figure 1: ADDIE Model, Diagram by: Steven J. MCGriff, Instructional Systems, College
of Education, Penn State University 20
Figure 2: Human Performance Technology (HPT) Model 22
Figure 3: Human Resource Management (HRM) Process 35
Figure 4: Systematic training process 38
Figure 5: Respondents’ Age 63
Figure 6: Sex Distribution of Respondents 64
Figure 7: Respondents Educational Qualification 65
Figure 8: Respondents’ Job Position 66
Figure 9: Respondents Duration of Employment 67
Figure 10: Reasons for sending employee on training 68
Figure 11: Immediate supervisors and the HR influence on the selection of an employee
for training 69
Figure 12: Effect of discrimination in selecting employees for training 70
Figure 13: Extent to which unsystematic approach of employees training affect
organizational productivity 71
Figure 14: Good training design ensures that identified employee skill gaps are properly
captured 73
Figure 15: Extent to which training design affects organizational performance 74
Figure 16: Importance of training design on employee performance 75
Figure 17: Bad training design results to waste of resources on employee training 76
Figure 18: Training delivery style ensures that the objective of employee training is
achieved 77
Figure 19: Extent to which training delivery style affects employee performance 78
xv
Figure 20: Employee poor performance as a result of poor training delivery style affect
organizational performance 80
Figure 21: Employee perception of training is correlated to organizational performance81
Figure 22: Level of correlation between employee perception of training and
organizational performance 82
Figure 23: Post training performance and organizational performance 83
Figure 24: Degree of post-training performance confidence 84
Figure 25: Employee training affects organizational performance 85
Figure 26: Extent of employee training effect on organizational performance 86
Figure 27: Relationship between employee training and employee performance 87
Figure 28: Employee Systematic Training Model 101
1
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The history of training in business organizations is as long as the entire history of business
organizations (Miller, 1996:3). This is because the knowledge base or skills of the normal
employees in the labour market is not sufficient for the specialized tasks within the
organizations. However, the academic study of various forms of training did not start until
about a century ago, when researchers started a branch of research under the name of
“vocational training” (Salas and Cannon Bowers, 2001). The beginning of the twentieth
century and especially after World War II saw the widespread of training programs among
organizations, involving more and more employees and also expanding in content (Luo,
2000). In the 1910s, only a few large companies such as Westinghouse, General Electric, and
International Harvester had factory schools that focused on training technical skills for entrylevel
workers. By the end of 1990, forty percent of the Fortune 500 firms in America had a
corporate university or learning center (Meister, 1997).
Training in Nigeria could be traced back to 1960 when it was discovered that most of the top
government and business positions were occupied by expatriates (Olalere and Adesoji, 2013).
The departure of the whites after independence gave rise to a big vacuum of capable
indigenous human capital. This prompted the Federal Government of Nigeria to set up a
Manpower Board in 1962 following the Ashby Commissions Recommendations (Olalere and
Adesoji, 2013:83). Consequently, the Federal Government of Nigeria established
complimentary institutions like the Centre for Management Development (CMD),
Administrative Staff College of Nigeria, Industrial Training Fund (ITF), and Federal Training
2
Centre to train and retrain employees as well as give orientation to fresh graduates of formal
academic institutions (Olalere and Adesoji, 2013).
Today, we are witnessing an overwhelming number of research studies from both descriptive
and prescriptive traditions, focusing on several characteristics of training programs as well as
their costs and benefits for business organizations (Becker and Gerhart, 1996). At the same
time, organizations have come to better understand the significance of training for their
survival in knowledge-intensive and volatile markets of this era, and thus have increasingly
acknowledged the profitability of developing their human resources through various forms of
training (Berge, 2001; Salas and Cannon-Bowers, 2001). Human resource capital of any
organization plays an important role, thus training and retraining helps in fortifying
employees (Khan, Khan and Khan, 2011).
Despite the obvious significance of training, the enormous expansion in the content of
training programs over time has largely been taken for granted. Some Human Resources
Departments rarely question the necessity and appropriateness of training a particular
employee at a particular time. Often times, there are ulterior motives why employees are sent
on training. Mourdoukoutas (2012) found out that some of those organizations that neglect
employee training do so because of the huge cost of training and the fear of losing those
employees after training them.
To show the importance attached to employee training, Nigerian Bottling Company has a
training school and 7UP Bottling Company conducts on-the-job and off-the-job training for
employees from time to time. This notwithstanding HR Departments in these organizations
still face challenges in the selection of employees for training. To assist in the possible
3
improvement of employee training in Soft Drinks Bottling Companies in particular and
manufacturing companies in general, the research was embarked upon to investigate the
effect of employee training on organizational performance vis-à-vis the processes of
employee training and the challenges faced by the Human Resource Department in the
selection of employees for training with reference to the employees of Nigerian Bottling
Company and 7UP Bottling Company, 9th Mile Corner, Ngwo, Enugu.
1.2 Statement of the Problem
The perception of employees on training has a greater impact on the success of any
organization. If the employees are satisfied with the training policies of the organization, this
will have a positive impact on the organization’s productivity. The perception or attitude of
employees is transformed into positive or negative behaviour. How do the employees see
employee training policies of the organization? How seriously does the Management take the
Training Policy of its organization? Some see training and development as a waste of time
and resources that would have been employed in the production of goods and services that
will yield profit to the organization. Sometimes, the fear that an employee could leave the
organization after training affects the employees training and sometimes makes it unplanned
and unsystematic.
The procedure and process usually adopted by some Human Resource Departments in the
identification of those employees that require training are worrisome. Employees sometimes
go for training for personal reasons which include enriching themselves; preparing
themselves for other positions in other organizations; power play/politics; because he/she
knows the person in-charge of training and not necessarily because there is an identified skill
gap which needs to be filled through training. Often times, the HR Department does not
4
conduct training needs assessment. Employees’ training selection criteria ought to be
systematic and free from bias. It must follow a lay down procedure to ensure that the right
candidates are sent for training for positive effect on organizational performance.
It is found that previous researchers have concentrated on the importance and benefits of
training and no study has been carried out on the challenges faced by the HR departments of
Soft Drink Bottling Companies in the selection of employees for training. In order to fill this
gap, the researcher is compelled to conduct a study on the effect of employee training on
organizational performance with focus on processes and procedures of identifying skill gaps,
training design and delivery style and employee perception towards training in Soft Drinks
Bottling Companies in Enugu State.
1.3 Objectives of the Study
The main objective of the study is to investigate the effect of employee training on
organizational performance with focus on the processes and procedures of selection
employees for training. However, specific objectives of the study are as follows:
1. To ascertain the extent to which selection procedure of employee for training affects
organizational productivity;
2. To determine the extent of effect of training design on employee productivity;
3. To ascertain the extent to which training delivery style affects employee productivity;
4. To find out the relationship between employee perceptions of training and
organizational productivity; and
5. To determine the extent to which employee training affects organizational
performance.
5
1.4 Research Questions
The research questions were drawn in line with the objectives as follows:
1. To what extent does selection procedure of employee for training affect organizational
productivity?
2. To what extent does training design affect organizational performance?
3. To what extent does training delivery style affect organizational performance?
4. What is the relationship between employee perception of training and organizational
productivity?
5. To what extent does employee training affects organizational performance?
1.5 Hypotheses
To achieve the objectives of this study, the following five hypotheses were formulated for
testing.
Ho: 1 Selection procedure of employee for training does not have a high effect on
organizational productivity.
Ho: 2 The extent to which training design affects organizational productivity is not
significant.
Ho: 3 The extent to which training delivery style affects organizational productivity is not
significant.
Ho: 4 There is no substantial relationship between employee perception of training and
organizational productivity.
Ho: 5 The extent to which employee training affects organizational productivity is not
significant.
6
1.6 Significance of the Study
The significance of this study cannot be over-emphasized and can be viewed from the
following perspectives.
1. The study will help the top management in taking strategic decision that affect
training and development for the overall growth of the industry;
2. Members of Staff of the two manufacturing industries to be used as case study will
have adequate knowledge as to the importance of training and why it is necessary that
they are trained from time to time;
3. The study will help the Human Resource Department in proper planning and
execution of training and development programmes;
4. Future researchers will also find this work very useful as reference materials for
further studies;
5. The study will be useful to the researcher as it will help her in actualizing her dream
and lead her to the completion of M.Sc. program in Management.
1.7 Scope of the Study
The study focused on the investigation of the effect of employees training on organizational
performance. The study was delimited to training and development programmes, employee
training design and delivery style, post-training performance evaluation of training on
organizational performance.
The geographical scope of the work is Enugu State in the South-east of Nigeria. The only two
soft drinks manufacturing companies located in Enugu State were chosen for the study. They
are: Nigerian Bottling Company Plc and 7UP Bottling Company Plc.
The field work for this research was conducted between August and September, 2012.
7
1.8 Limitations of the Study
The following constraints were encountered in the course of this work.
1. Lack of reliable data: The Respondents’ unwillingness to give out available and
reliable data was major constrain in the course of the study.
2. Dearth of Research materials: The researcher was constrained in the search of
research materials. Most current books and journals on the related area are not free,
and so the researchers was limited to those materials she could afford.
3. Measure used to collect data: Secondary data would have been more appropriate for
the post-evaluation analysis, but because it was difficult to separate and link
percentage (%) increase in turnover to employee training, primary data was used.
4. Self-reported data: Self reported data was a major limitation of the study, because it
rarely can be independently verified. The researcher had to take what the respondents
said at face value.
Nonetheless, with available data and judicious use of the limited resources, reasonable
analysis was carried out to ensure that research findings add up to the body of knowledge.
1.9 Operational Definition of Terms
Delivery style - This is a set of a systematic processes designed to meet learning
objectives related to trainees' current or future jobs (Simmering, M.J.,
www.referenceforbusiness.com).
Training design - This is the process of creating a blueprint for the development of
instruction for a training for positive impact (O’Toole, S., eHow
Contributor).
8
REFERENCES
Becker, B. and Gerhart, B. (1996), “The Impact of Human Resource Management on
Organizational Performance: Progress and Prospects”, Academy of Management
Journal, 39(4), 779-801.
Berge Z. L. (ed) (2001), Sustaining Distance Training: Integrating Learning Technologies
into the Fabric of the Enterprise, San Francisco: Jossey-Bass.
Khan, R.A.G., Khan, F.A. and Khan, M.A. (July, 2011), Impact of Training and
Development on Organizational Performance, Global Journal of Management and
Business Research, 11(7). Global Journals Inc. (USA). http://globaljournals.org/
GJMBR_Volume11/8-Impact-of-Training-and-Development-on-Organizational-
Performance.pdf [accessed 3 October, 2012].
Luo, X (June, 2000). The Rise of Personal Development Training in Organizations: A
Historical and Institutional Perspective on Workplace Training Programs in the U.S.
Perspectives, Vol. 1, No. 6, http://www.oycf.org/Perspectives2/6_063000/
rise_of_personal_development_tra.htm.
Meister, J. (1997), Corporate Universities: Lessons in Building a World-Class Work Force,
NY: McGraw-Hill, Inc.
Miller, V. A. (1996). The History of Training. In Craig, R. L. (Ed.), The ADTS Training and
Development Handbook: A Guide to Human Resource Development (4th ed, pp. 3-
17), New York: McGraw-Hill.
O’Toole, S. (eHow Contributor), What is Training Design?
http://www.ehow.com/facts_5761016_training-design_.html, [accessed 20 June, 2011].
Olalere, T.O. and Adesoji, A.A. (May, 2013), Human Capital Development in First Bank of
Nigeria Plc, Mediterranean Journal of Social Science 4(2). MCSER-CEMAS-Sapienza
University of Rome.
Salas, E. and Cannon-Bowers, J. A. (2001), The Science of Training: A Decade of Progress,
Annual Review of Psychology, 52, 471–499.
Simmering, M.J., Training Delivery Method, www.referenceforbusiness.com/management/
Tr-Z/Training-DeliveryMethods.html#ixzz37j72CXa7, [accessed 17 July 2013].



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