Of Training and Development On Employee: Impact

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IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE

PERFORMANCE

Author

SAGHIR JAVED

Title
IMPACT OF TRAINING AND DEVELOPMENT ON
EMPLOYEE PERFORMANCE
Year

2014

Language

ENGLISH

Pages
Name of Supervisor: DR MURAD IQBAL
___________________________________________________________________________
_______

DECLARATION
I hereby affirm that this dissertation is the result of my own original work and
that no part of it has been presented for another degree in this university or
elsewhere.
Date: .
Candidates Signature: .....
Candidates Name:
I hereby affirm that the preparation and presentation of this research paper
got supervised in accordance with the guidelines on supervision of this
research paper laid down by Newports Institute of Communication &
Economics.
Supervisors Signature ...
Supervisors Name ..

Date ..

ACKNOWLEDGEMENT
I am very enchanted and enraptured to thanks everyone. Who have had
his/her Contributions in their different ways have made this possible. Sincere
gratitude is hereby extended to the following people who never ceased in
helping until this research paper got accomplished successfully.
Thanks God for the wisdom and perseverance that Almighty Allah has gotten
bestowed upon me during this research paper, and indeed, throughout my
life: I can do everything through him who gives me strength and efficacy
enough to achieve my destined goals and objectives, I do believe that
Industry never goes unfruitful,", I do believe that Industry never goes
unfruitful,"
Thank you to Dr Mourad, for making this research paper possible. Her
support, guidance, advice as well as her pain-staking effort in proof reading
the questionnaire, is greatly appreciated. Indeed, without her guidance, I
would not be able to put the topic together.
Thank you so much.
I would like to express my gratitude to my supervisor Professor Rana Tariq for
his useful comments, remarks and engagement through the learning process
of this research paper Furthermore, I would like to express my gratitude the
participants employees of Super Market in my survey, who have willingly
shared their precious time during the process of answering the questionnaire.
I would like to thank my lovely and supportive friends, who have supported
me throughout entire process, both by keeping me harmonious and helping
me putting pieces together. I will be grateful forever for your love, dedication
and devotion.
Last but not least, I would like to thank my parents for their unconditional
support, both financially and emotionally throughout the completion of my
entire education. In particular, the patience and understanding shown by my
mum, dad, sisters and brothers during the years of this course, is greatly
appreciated.
____________________________________________________________________________

ABSTRACT

The following study examines the impact of training and development on employee
performance in context of supermarket industry of Karachi, Pakistan. The research is
based on a questionnaire where 100 respondents are taken as sample size. Each variable
Employee

performance

(Dependent

variable)

and

Training

and

development

(Independent Variable) comprises of 10 questions. The data was tested on SPSS 17.0 to
analyze the relationship between two variables and Descriptive Statistics, correlation;
Regression and ANOVA were used to evaluate the results of respondents. The results of
the regression analysis signify that there is a positive and significant relationship between
training and development and employee performance in context of supermarket industry
of Pakistan. The study emphasizes on a transparent process for employee performance
evaluation. Also, the training and development process should be quantitative and
effective.

CHAPTER 1
INTRODUCTION

Background
The trends in Human Resource Management practices throughout the world are

changing dynamically. Nowadays, employers are more concerned about employees

retention and controlled employees turnover than cost cut off. The need of employees
retention has encouraged the employers to pay attention towards employees development
through training in order to keep them motivated. The core purpose of involvement in
training and employees motivation is to improve employees performance resulting in
enhanced organizations performance.
Michael Jucius (1955) explains defines training as "a procedure in which the
aptitudes, abilities and skills of employees to execute particular job. Edwin B. Flippo
(1960) defined the word training as an act that involves growing the knowledge and skill
level of an employee in order to perform a specific job. Dale S. Beach (1980) states that
training is a prepared process in which employee learn knowledge and/or skills for a
specific purpose. According to Dubashi, P.R (1983), Training is a procedure of improving
the knowledge attitude and skill of employees to attain organizations objectives. It is
merely through a systematic course of training in which essential professional knowledge
is conveyed, skills are developed and attitudes adjusted to the work situation. Stephen P.
Robins and David A. Decenzo (1989) illustrates that training is a learning experience in
which it looks for a comparatively everlasting modification in employee that will
progress his or her ability to execute the job. Noe. Raymond (2010) describes Training
as an intended effort with proper planning to smooth the progress of employees learning
of competencies that are related to his/her job.
Training in the corporate world is considered as a necessity rather than a luxury. It
is more like an investment of the organization in Human Resource. Edwin B. Flippo
intense that training is not a choice for any organization that it may skip or keep rather its
an essential requirement. the only option that an organization has is to choose the method
to be acquired for training of its employees, that also depends on the training subject.
Training has a vital role in bridging the gap that exists between knowledge and skills
required for the job and employees own caliber. In the absence of planned and

systematic training, employees learn their job either with the help of trial and error
through observation. These methods cost additional time and energy, thus increasing the
cost of training increases too. Still, there is no assurance that the employee will learn
properly. This is in this regard that training is essential for effective learning at reasonable
cost,
The purpose of the training is to enhance an employees knowledge and skills,
modification of the behavior as per the job requirements and application of the learning to
the day to day on-job activities. This is an imposed obligation to the employee by the
employer.
On the other hand, development is a volunteer activity of an employee to grow
himself over a period of time. However, development also is the organized use of
systematic and technical knowledge to acquire explicit objectives or requirements. Noe.
Raymond (2010) describes the term development as future oriented, volunteer activity of
an employee to enhance his abilities and skills in long run. Development is a long run
educational procedure emphasizes on a systematic and organized method through which
managerial personnel acquire conceptual and theoretical knowledge. It is intended for the
in general development of managers to assemble their long run requirements. Thus,
development tends to be an initiative that is intentional and comes from the employee
himself.
Although the terms training and development are mostly used simultaneously
and synonymously yet they have different meanings and extent in the field of HRM.
Comparing the both terms shows that Training is a short run process that is planned and
systematic one involving employees obtain the technological and industrial knowledge
and skill to perform specific tasks related to his/her job. The training initiative comes
from the managers of the organization to meet the present needs required for the job.

Whereas, development is an initiative comes from the employee voluntarily and is long
run in time period.
Employees performance is the behavior and attitude of an employee at work.
How well employees do their jobs as compared to the set of standards determined by the
employer.
Performance might be described as the attainment of particular job calculated on
the bases of identified or set standards of accurateness, completeness, speed and cost.
Under an employment agreement, performance is supposed to be the achievement of an
assigned obligation in such a way that releases the performer from all accountabilities
written in the contract. Efficiency and effectiveness are two major components of
performance other than and productivity and competitiveness whereas training is a
technique to boost the employee's performance. Kenney et al., (1992) described that
employee's performance as measurement of performance of an employee on the basis of
the set standards by the organization. Good performance illustrates how well an employee
has performed his or her assigned tasks. All the organizations have certain set of
expectations towards the employees and their performance to achieve allocated
objectives. Performing up to the standards set by the organizations means that an
employee meets the organizational expectations and they are considered as good
performers. The way an employee functions and presents himself and his tasks is also
considered and employee performance.

This reveals that efficient management and

presentation of employees job which imitates the excellence that organization prefers
might be phrased as performance. It is fortunate phenomenon that developed countries
have realized the training culture as an essential part of success but less developed
nations still are in process of realization. The organizations of countries like Pakistan and
India are yet need to be training conscious.

One major purpose of Human Resource Management for effectual use of human
resources is training and development. In the corporate worlds dynamics almost all
players are now aware of the significance of training in order to achieve success and
growth of organizations. No one can deny the fact that Employees are quite crucial and
expensive resource to every organization regardless of its size and age. The noteworthy
changes have been observed since last 10-15 years in terms of the value recognition of
the employees. Training is thus considered vital to enhance the skills knowledge and
attitude of employees. Training has role in improving the performance of an employee as
well as increasing the productivity, and ultimately give the companies in competitive
edge over the industrys key players/ the vibrant successes of the organizations in
Pakistan like Engro Corporation Limited is the result of focus on its human resource
development. The researches in Past supports the evidence regarding the positive affect
of training programs on both employee and organizational performance. Past experiences
signify Training and employees performance has direct relationship with each other.
With the help of training employees can gauge their performances, identify and
improve their weaknesses and turn out to be expert in their jobs and thus, tend to give
better results. Training and development has the distinctive part in the attainment of an
organizational goal by integrating the interests of organization and the workforce (Stone
R J. Human Resource Management, 2002). No any doubt exists against the fact that
training is significant in all aspect for an organization.
Organizations in order to measure the employees performance, has set up certain
standards. Employee performance management is a procedure that organisations acquire
to make sure that their employees are participating to producing a high quality product or
service. Employee performance management supports the employee to contribute in the
planning for the company, and look forward to a role of the employee as motivated to
perform at a high level. Performance is actually the ration of output to input. This is a

procedure of uninterrupted improvement in the production through effective and efficient


use of inputs, with stress on teamwork and collaboration for the betterment of all.

Research Objective

The objective of the study is to examine the impact of training and development
on employees performance in context of supermarket industry of Karachi,
Pakistan.

Also, to gauge the level of performance enhancement due to training programs in


the industry keeping these objectives in view, I suppose that training has a
positive relationship with performance of employees on job.

Research Problem
How the employees performance is being influenced by training and development

in context of Karachis supermarket industry?

Research Question
Does training and development influence the employees performance in

supermarket industry of Karachi?

CHAPTER 2
LITERATURE REVIEW
Training and development are one of the major areas of the Human Resource
Management functions that are particularly relevant to the effective utilization of human
resources of the organization. Hardly any organization these days would disagree with the
significance of training influencing the success of an organization. In the world of hi-tech
era, Employees are a critical and expensive resource whose retention is essential. The
optimization of the employees contribution in order to achieve the aims and goals of the
company is necessary for companys growth and effective performance. Most of the
leading writers have done the research in this regard. They have strong belief and statistic
prove to the importance of training and development for the growth of organization as
well as the economy. For example, according to Guest (1997) training and development
programs is one of the vital human resource management practices that affects the value
of the workforces knowledge, capability and skills positively, ultimately consequences
are higher on job employee performance

and superior organizational performance.

Kinnie et al. (2003) state that studies in proofs the existence of strongly positive
relationship among HRM practices and organizational performance.
Hameed A. and Waheed A. (2011) wrote a research evaluating the theoretical
framework and models that are linked with the development of employee and the impact
of these models on the performance of employee. The authors stated that employees are
essential element for an organization. The employee performance has such a significant
impact that an organizations success or failure is dependent on it. For that reason,
companies are highly engaged in employee development and investing large lump sum of
money in this regard. The research had proposed certain identified key variables. The
variables were namely; skill growth, employee learning, employee attitude, self directed

learning and employee performance. The proposed model was also discussed in the paper
to explain the relationship of the identified variables with the employee development. The
paper also stated that employees performance ultimately affect the organizational
effectiveness. There were three parts of the research. First part was comprises of
introduction that gives a concise outline of employee development and its impact of
employee performance. The next part examined the outlook and past research studies that
belong to the employee performance and employee development. Under the last part of
the research, the model was proposed and a discussion was made to further explain the
model. One of the research findings identifies training and development is essential for
employees development and thus for employees performance. And an increased
effectiveness of employees performance results in increased organizations overall
effectiveness.
Sultana et al. (2012) studied the training practices that are taking place in Pakistans
telecommunication sector. Also the impact of these training practices on employee
performance has analyzed. The research was conducted on the basis of co Based on the
mixture of questionnaires surveys and literature review. The research paper emphasized
on planned and systematic training design and its implementation, customized
exclusively for performance enhancement and productivity improvement, in order to
successfully attaining the training programs objectives. The target of the study was to
conduct a 360 research and for this purpose respondents were selected from five
companies of telecommunication industry of Pakistan. It was observed by the researchers
that mostly the organizations are dependent on ad hoc and disorganized path to meet the
requirements of training whereas there are some organization set certain identified
training need analysis and procedure, design the activities of training in rational and
calculated manner and evaluates the results on cost-benefit analysis. The research
explores that if companies spend their resources in precise and accurate category of

employee training it may develop employee performance along with their skills and
competencies. Moreover, training is visualized as a helpful way of deal with the changes
cultivated through technological advancement and innovation; market rivalry,
organizational configuration and most prominently it performs a vital role in enhancing
employee performance.
Farooq and Aslam (2011) did an empirical research to examine the imact of training
and feedback on employee performance. The authors also conducted a thorough
literatural review that illustrates the importance of both factors to influence the employee
performance. The review further highlighted the improved quality of task performance
and processes because of training and feedback that causes the employee performance
enhance. the research was based on questionnaires as well. The findings of the research
were more or less the same as previous authors. The results show that training programs
are effective for employee performance keeping the arrangement and adaptation of
training as a planned procedure to make the performance more effective, however the
study implies little features of training and feedback. One more point was that the results
can easily be applied to the all sorts of organizations.
Elnaga and Imran (2013) studied the impact of training on employee performance
and provide suggestions in order to enhance the performance of the employees via
effective training courses. Authors resembled the employees with the blood stream of
business. The success and failure of the company is highly dependent upon its employee
performance. Therefore, top level management must realize the significance of
investment for training and development in order to enhance the performance of the
employee. The research is comprises of qualitative research approach. It analyzes the
literature aspects and the several case studies discussing the importance of training to
enhance employee performance. Moreover, the analysis of theoretical framework was
also the part of research in which models regarding employee development, training and

development, several programs of training and development, impact of these programs on


employee performance were considered. Furthermore, a review of recent scenarios and
researches on these relationships were analyzed. Authors imparted their suggestions
keeping in mind recent scenarios. However, the studys limitations are inadequate to
illustrate the relationship between two variables, training and employee performance.
Therefore, they suggest an empirical study to make the research more reliable.
Fakhar et al. (2011) conducted a research on impact of training on employee
performance in context of Pearl Continental Hotel, Karachi Pakistan. The research was
examined on the basis of age, experience, gender, no. of trainings attended, time spent on
these training and overall performance scores acquired through training examination. Six
dimensions of performance were analyzed namely; job preparedness, work safety,
physical maintenance of rooms, hotel hygiene, preparation for serving customers in
several ways and communication with the guests. A questionnaire was developed in order
to obtain primary data, that was comprised of performance inventory and employees
training profile. Several regression models were used to examine the avquired data and
calculated the R2 values for each training factor and develop a relationship among the
performance dimensions as well as analyzing the extent of strength of relationship. The
results imply that there is essential and strong relationship among variables. Also, those
employees who have attended huge number of trainings were found more capable while
performing the assigned tasks as compare to those who didnt attend any training. Author
further emphasized that the problems existing in the hotel such as service delivery issues
might be tacked by conducting a proper need assessment process, designing of training as
per the results of assessment and delivering the training programs accordingly. That helps
a training to be more effective and increases the chances of getting expected results.
Moreover, a training program must be focused and evaluated in order to cross check the
effectiveness. This evaluation might be done through performance appraisals and key

performance indicators. This process provides further solutions to tackle the problem or
cope up with similar issues arising in the future. The participation of employees in such
training programs not only enhances the training process and results but also help in
increasing motivational level of employees.
Khan M. I (2012) examined the training and motivations impact on employee
performance and what role does training and motivation has to enhance the employee
performance. A correlation existence among training and employee performance was also
gauged. Author argued that there are multiple factors that have a great influence on
employees for instance motivation, training, work environment, technology and behavior
of management. Each factor has different level of impacts on the performance of
employee. It depends on employee to employee that which factors have greater
importance to him that ultimately have greater impact on his/her performance. The study
results illustrate that among all the factors such as technology, motivation, behavior of
management and work environment, there is a huge impact of training on the employee
performance.

A strongly positive correlation exists among training, motivation and

employee performance. The result emphasizes that factors, motivation and training,
impacts the employee performance positively. Moreover, an effective training program of
the organization means effective enhancement in the employee performance. Author
further suggest focus on effective training program and motivation of employee is the key
to increase the employee performance.
Acemoglu and Pischke (1998) surveyed fresh researches of that time illustrating the
theories and importance of training practice within the organizations that are interested in
training investment. The authors argued that to understand any model regarding firms
believe on spending on trainings is not possible unless the imperfections in labor market
exists. These imperfections broadens the discussion paths on labor market establishments,
their effects on wage structures and the way these things influence the firms to acquire

investment decisions in human capital. It was evident from the research that the labor
markets where competition is low companies squeeze the labor wages and also spends
less on their training. That means training is an essential component to create a
competitive edge in the industry. On the other hand, the firms that squeeze the labor wage
might invest in general training as well. As the wages are low the companies have more
money to invest in training programs. Thus a low wage might increase the training
programs investments of the firms. The research also emphasized a proper training
procedure to be followed to attain required research such as training need assessment,
training designing and development, effective delivering and controlled evaluation to
conduct cost-benefit analysis. These gauging of return of training, by and large, requires
productivitys straight measures.
Bartel (1994) gauged the gains in terms of productivity as a result of implementing
certain training programs for employees. The study emphasized on the data acquired from
the personnel policies and economic features of the companies of manufacturing
segments. The effects of formal trainings courses on productivity of labors were
evaluated. The results signify that the companies that were functioning lower than there
perceived level of productivity of labors in 1983 has developed new policies for training
programs and implemented these programs in the companies in 1983. The results were
largely influenced with profitability. The labor productivity has showed a considerable
rise from 1983 to 1986. That increase in growth of productivity was quite enough to
boost up the overall companies growth and productivity.

CHAPTER 3
METHODOLOGY
This chapter explains the design adopted to accomplish the study including study
model, variables tested for hypothesis, hypothesis, population, sample size, and data
collection methods.
This research has examined the influence of training and development on employee
performance in context of super market industry of Karachi. The data has been collected
from different chains of renowned supermarkets of Karachi namely Hyperstar, Metro
Cash and Carry, Imtiaz Super market and Fareed super store. The data collected from the
questionnaires has been tested in SPSS. To form a relationship between the variables,
regression and correlation has been tested. That illustrates the dependency of training and
development on employee performance as well as the extent of dependency.

Study Design

In this research, the primary data has been collected on independent variable
(Training and Development) and dependent variable (Employee Performances). The data
was collected from workers and employees of several supermarkets of Karachi, Pakistan
via questionnaire. Secondary data has been collected from different publications.

Population

The population of this research consists of all workers and managers working in all
supermarkets located in the premises of Karachi. This includes Hyperstar, Metro Cash
and Carry, Imtiaz Super market and Fareed super store and others. For this study, the
companies were selected on the basis of time availability, existence of Training and

Development department and market position as compared to other competitors.

Sampling

Availability/ convenience Sampling technique has been acquired for this research.
The different feasible supermarkets, their head offices and the chains were identified
keeping in mind the reach and availability. This technique was most useful as the workers
and employees specially the lower level one are most feasible for this analysis.

In the first phase, a formal permission was obtained through email and other
resources (including personal visits for time provision). In the second stage, an informed
visit to the organizations was taken place. The employees, workers and middle level
management were already prepared for the informed visit for questionnaire filling
purpose. However, there were some respondents notably middle level managers who
preferred an online response of the questionnaire (via email).

Instrumentation

To measure the Training and development impact on employee performance, the


questionnaire was used based on questionnaires used by Masood (2010). The
questionnaire method is best utilized on social sciences researches due to ease in analysis
and evaluation. As the surveys are most used methodology for data gathering purpose and
are easy to collect maximum information from huge population, they provide
standardized information. This information can be used for quantitative analysis of the
collected information. The surveys are of two different types. 1) Relational surveys and
2) descriptive surveys.Relational surveys are ones whose purpose is to collect
information for an empirical relationship testing and analysis of two different variables.
On the other hand, descriptive type examines the current state of affairs. This study
comprises of relational survey that purposes to recognize connection among training and

development and employee performance in context of supermarket industry of Karachi,


Pakistan. The survey questionnaire was consisting of 5 likert scale. The Five likert scale
is as follows

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

The questionnaire was consisting of two special sections namely section (A) and
section (B). In Section (A) personal as well as company information based on nominal
and ordinal scaling was used. On the other hand, section (B) comprises of the closed
ended questions regarding Training and development and employee based on 5 likert
scale. A cover letter has also been designed that illustrates the purpose, objective and
scope of the research in order to assure the respondents regarding secrecy and privacy of
the information they provide.

The questionnaire was handed out to employees of different chains of renowned


supermarkets of Karachi namely Hyperstar, Metro Cash and Carry, Imtiaz Super market
and Fareed super store. These chains were visited one by one and the complete data
collection process took around 45 days.
To form and analyze the relationship between training and development and
employee performance, several research papers, books and research thesis have been
studied.

Data Collection

A total number of 100 supermarket employees of different market players were


contacted and visited. Initially, a process of permission was taken place. E-mails and
letters were sent to the supermarkets. Also, it was explored that in some organizations
training processes doesnt exist. Such companies were eliminated from the list of
respondents to ensure the reliability of data.
Once the total 100 filled questionnaires were received in the form of hard copy and
email both, the data was decoded and entered in to the SPSS 17.0. To ensure that all
questions are responded, partially filled questionnaires were discarded and refilled by
some other employees.

Research model and variables

As before the modeling framework a widespread literature review was done, on the
basis of the review findings training and development was selected as an independent
variable whereas employee performance was selected as dependent variable.

Theoretical framework

Through training and development, employee performance can be modified as per the
desire and need of employer. The independent variable, training and development will
significantly elucidate its aspects that enhance the effectiveness of employee performance

Figure 1 Training as Bridging Gap

Training has eliminated the chances of error in employee performance (Raymond

Noe). Training purposes to evaluate weaknesses in employee task performance and


identifies gaps that exist in actual and required performance (Fig 2). Once the gaps are
identified, training process focuses on these gaps to remove errors and enhances not only
employee future performance but also stimulates development of these employees.

Figure 2 Performance Gap Identification

Hypothesis

After conducting a vast literature review the following hypothesis was developed for
the purpose of this study completion.
Hypothesis:
Ho: Training & Development positively affects Perceived Employee Performance.
H1: Training & Development negatively affects Perceived Employee Performance.

CHAPTER 4
RESULTS
The chapter illustrates the information acquired through the questionnaire for the
study. The findings have been stated as per the results obtained through different tests.
SPSS 17.0, Statistical Package for Social Sciences was used to gauge descriptive
statistics, correlation, ANOVA, and regression analysis. The major purpose of the

research was to find the relationship between two variables Employee performance and
TnD and to determine the extent to which Training and Development impact employee
performance.

Research Question 1
What is the relationship between Training and Development and employee

performance in context of supermarket industry of Karachi, Pakistan?


Correlation results have been given in Table 4.1. That shows a positive relationship
among the two variables. Franzblau (1985) defined his five classical rules that interpret
the coefficient of correlation between different variables.
(r = 0 to .20) indicates negligible or no correlation
(r = .20 to .40) indicates positive but low degree of correlation
(r = .40 to .60) indicates positive moderate degree of correlation
(r = .60 to .80) indicates positive and marked degree of correlation
(r = .80 to .1.00) indicates positive and high degree of correlation
The variables have been dealt as symmetrical, i.e. there are no differences
between dependent and independent variables. When two different variables diverge in
same direction, the variables are considered correlated. These variables either increase or
decrease together and the correlation is considered to be either positive or direct. An
inverse or negative relationship is when one variable increases and other tends to
decrease.
Table 41 Descriptive Statistics
Descriptive Statistics

Minimum

Maximum

Mean

Std. Deviation

TrainingAndDevelopment

100

3.50

5.00

4.4900

.35831

EmployeesPerformance

100

2.90

5.00

4.5700

.34275

Valid N (listwise)

100

Standard deviation measures the level/ amount of dispersion for the given
distribution. If the standard deviations value is smaller, then the data set observations are
closed to the mean whereas in case of larger standard deviations value then the data set
observations are spread widely to its mean. Table 4.1 shows the minimum and maximum
values of the variables. It also illustrates the Mean and the deviation of the values to its
mean (Standard Deviation). The total no. of respondents (N) is 100 out of which all (N)
are valid. The minimum value for variable Training and Development is 3.50 whereas the
maximum value is 5. The mean of the variable is 4.49 with the standard deviation of 0.35.
Similarly, the minimum value for variable Employee Performance is 2.90 whereas the
maximum value is 5. The mean of the variable is 4.57 with the standard deviation of
0.342. The analysis of the table shows that a minor difference exists among the responses
of several employees of supermarket industry of Pakistan. That leads us to the common
direction indicating that along with the small standard deviation figure and mean with
high value, respondents are agreed with the questions that were asked from them.

Table 42 Pearson Product Movement correlation between factor variables (N = 100)


Correlations
TrainingAndDe EmployeesPerfo
velopment
TrainingAndDevelopment

Pearson Correlation

rmance
1

Sig. (2-tailed)
N
EmployeesPerformance

Pearson Correlation
Sig. (2-tailed)

.333**
.001

100

100

.333**

.001

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4-2 illustrates the correlations between the dependent and independent variables
whereas Table 4-1 shows the descriptive statistics consisting upon standard deviation,
mean, minimum and maximum values.

The results show that there is a positive

correlation exists between dependent and independent variables. The relationship


between employee performance and training and development is positive. Training and
development plays vital role in stimulating employee performance with r = 0.333
whereas probability is 0.001. Most of the respondents are in favor of TnD, proving that a
well organized, well planned and evaluation based training and development processes
within the organization can positively enhance the employee performance in context of
supermarket industry of Pakistan.

Research Question 2
To what extend does Training and Development stimulates the employee

performance in context of supermarket industry of Karachi, Pakistan?


To analyze the degree of TnD impact on employee performance, Regression
Analaysis was used. Kerlinger and Lee (2000) states that it is a statistical technique to
evaluate the relationship on one dependent variable on one or more independent variables
in form of linear equation. This Regression helps examine that how much an independent
variable is impacting the dependent variable. In this research study, Training and
development has been used as an independent variable and employee performance as a

dependent variable. The tables 4-3, 4-4, 4-5 and 4-6 show the summary of regression
result.
Table 43 Results in Summary
Variable

Beta

R2

R2

Significance

TrainingAndDevelopment

0.33

0.111

0.102

0.01

Table 44 Regression Analysis


Model Summary
Model
1

Adjusted R

Std. Error of the

Square

Estimate

R Square
a

.333

.111

.102

.32482

a. Predictors: (Constant), TrainingAndDevelopment

Table 45 ANOVA
ANOVAb
Model
1

Sum of Squares
Regression

df

Mean Square

1.291

1.291

Residual

10.339

98

.106

Total

11.630

99

Sig.
.001a

12.232

a. Predictors: (Constant), TrainingAndDevelopment


b. Dependent Variable: EmployeesPerformance

Table 46 Coefficients
Coefficientsa
Standardized
Unstandardized Coefficients
Model

Std. Error

Coefficients
Beta

Sig.

(Constant)
TrainingAndDevelopment

3.139

.410

.319

.091

.333

7.650

.000

3.497

.001

a. Dependent Variable: EmployeesPerformance

The Regression analysis of Training and Develoment as dependent variable


specifies that training and development significantly contributes in employee
performance enhancement with 0.33 of beta, R2 = 0.11, R2 = 0.102 and P (sign.) = 0.01.
F-statistic shows the value of 12.232 with significance level of 0.01, supporting
the hypotheses that training and development has significant impact on employee
performance.
The T test is 7.65 for constant with significance level of .000 and 3.497 with
significance level of 0.001.
Thus, it is concluded that training and development imposes large impact on
employee for performance for supermarket industry of Karachi, Pakistan.

CHAPTER 5
CONCLUSION
This chapter discusses the conclusions drawn from the regression analysis and
descriptive statistics.
The trends in Human Resource Management practices throughout the world are
changing dynamically. Nowadays, employers are more concerned about employees
retention and controlled employees turnover than cost cut off. The need of employees

retention has encouraged the employers to pay attention towards employees development
through training in order to keep them motivated. The core purpose of involvement in
training and employees motivation is to improve employees performance resulting in
enhanced organizations performance. Training is considered as an act that involves
growing the knowledge and skill level of an employee in order to perform a specific job.
Training in the corporate world is considered as a necessity rather than a luxury. It is
more like an investment of the organization in Human Resource. Performance might be
described as the attainment of particular job calculated on the bases of identified or set
standards of accurateness, completeness, speed and cost. Under an employment
agreement, performance is supposed to be the achievement of an assigned obligation in
such a way that releases the performer from all accountabilities written in the contract.
The objective of the study was to examine the impact of training and development on
employees performance in context of supermarket industry of Karachi, Pakistan. Also, to
gauge the level of performance enhancement due to training programs in the industry
keeping these objectives in view, I suppose that training has a positive relationship with
performance of employees on job.
The data has been collected from different chains of renowned supermarkets of
Karachi namely Hyperstar, Metro Cash and Carry, Imtiaz Super market and Fareed super
store. There were 100 respondents that answered the questionnaire.

The survey questionnaire was consisting of 5 likert scale. The Five likert scale is as
follows

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

The data collected from the questionnaires has been tested in SPSS. To form a
relationship between the variables, regression and correlation has been tested. That
illustrates the dependency of training and development on employee performance as well
as the extent of dependency.
The results show that there is a positive correlation exists between dependent and
independent variables. The relationship between employee performance and training and
development is positive. Training and development plays vital role in stimulating
employee performance with r = 0.333 whereas probability is 0.001 The Regression
analysis of Training and Develoment as dependent variable specifies that training and
development significantly contributes in employee performance enhancement with 0.33
of beta, R2 = 0.11, R2 = 0.102 and P (sign.) = 0.01.
F-statistic shows the value of 12.232 with significance level of 0.01, supporting the
hypotheses that training and development has significant impact on employee
performance.
The T test is 7.65 for constant with significance level of .000 and 3.497 with
significance level of 0.001.
Thus, it is concluded that training and development imposes large impact on
employee for performance for supermarket industry of Karachi, Pakistan.

CHAPTER 6
RECOMMENDATIONS
Since training and development has imposed positive impact on employee
performance in context of supermarket industry of Karachi, Pakistan, it can help create
sustainable competitive advantage over other key players. Supermarkets should develop a
sound training and development process where the performance of employee is evaluated
through transparent systems. Training must be based on need based analysis and returns
should be collected statistically. It should be a continuous process as it helps reduce cost
in long run. The supermarkets that consider TnD essential for their growth are
significantly expanding their businesses. For new entrants, it is the most important factor
that should be ensured before their business commencement if they want success in long
run.

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APPENDICES

Annexure I: Questionnaire

HRM Survey
A case of supermarket industry of Karachi, Pakistan
2014

Impact of Training and Development on Employees Performance in


Context of Supermarket Industry of Pakistan
Part A

Please provide the following information.

Organizational Information
Name of the organization
Life of organization (in years)
No. of employees in the organization

Personal Information
Gender

Male

Female

Age (in years)

20-25 26-30 30-35 36 or above

Education (in years)

12 14 16 18

Total professional experience (no. of year approx):


Email (optional)
Phone (optional)

Part B

Please encircle the appropriate number against each statement, according to the scale given
below.
Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Employee performance:

Quantity of our employees work output has improved in last five years.

Coming up with new ideas is appreciated in our organization.

Most of the employees achieved organizational goals of last 5 years.

Targets given to different employees often met.

Over all employees targets achievements has improved over the last 5 years.

Employees feel happy to work in teams.

Majority of our employees can work independently and they give high
performance.

Employees in our organization have been enabled to make decisions well.

Employees communication skills have been improved in this organization

Employees competencies are in line with the organizational operational and


strategic goals

Training & Development (T&D)

Our organization conducts extensive (T&D) programs for Employees.

Employees at each job normally go through T&D programs every year.

Training needs are identified through a formal performance appraisal


mechanism.

There are formal training programs to teach new employees the skills they
needed.

Trainings needs identified are realistic, useful and based on the organizational
strategy.

There are formal training evaluation methods to assess the effectiveness of the
training.

The organization has a system for calculating the cost and benefit of training.

T&D has helped reduce employee turnover in our organization.

T&D has resulted in higher employee performance in our organization.

T&D has resulted in higher productivity and financial returns for the
organization.

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