Final Project Business Reseach Method (A)

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UNIVERSITY OF LAHORE

FINAL PROJECT
BUSINESS RESEARCH METHODS
TOPIC:
The Effect of Training on Employee Performance

SUBMITTED BY:

 MUHHAMAD HAROON ABID (70074694)


 MUHAMMAD AHMAD (70083171)
 DANISH RAUF (70075444)
 MUHAMMAD SULEMAN (70075554)
 RIZWAN ALI (70075617)
 SHAHZAIB ALI (70075617)
ABSTRACT:
Improved capabilities, knowledge and skills of the talented workforce proved to be a major source
of competitive advantage in a global market. To develop the desired knowledge, skills and abilities
of the employees, to perform well on the job, requires effective training programs that may also
effect employee motivation and commitment. In order to prepare their workers to do their job as
desired, organizations provide training as to optimize their employee’s potential. Most of the firms,
by applying long term planning, invest in the building new skills by their workforce, enabling them
to cope with the uncertain conditions that they may face in future, thus, improving the employee
performance through superior level of motivation and commitment. When employees recognize
their organization interest in them through offering training programs, they in turn apply their best
efforts to achieve organizational goals, and show high performance on job.
Employees are the most valuable asset of every company as they can make or break a company’s
reputation and can adversely affect profitability. Employees often are responsible for the great bulk
of necessary work to be done as well as customer satisfaction and the quality of products and
events. Without proper training, employees both new and current do not receive the information
and develop the skill sets necessary for accomplishing their tasks at their maximum potential.
Employees who undergo proper training tend to keep their jobs longer than those who do not.
Training is a necessity in the workplace. Without it, employees don't have a firm grasp on their
responsibilities or duties. Employee training refers to programs that provide workers with
information, new skills, or professional development opportunities
The companies aimed at gaining the competitive advantage realized the importance of training in
improving the employee’s performance. Past researches provides the evidence regarding the
positive affect of training programs on both employee and organizational performance. On one
hand previous work in the field proved that effective training programs leads to superior return on
investment while the other researches mentioned the positive role of training in attaining the
supreme levels of employee retention.

In spite of the large number of researches on the relationship between training and employee
performance, there appears to be a gap, concerning the study of effect of training on employee
performance. The purpose of this study is to close this gap by deeply investigating this
phenomenon through the relevant literature, shedding more light into the relationship of training
effectiveness, and superior employee performance and providing suggestions to the firms as how
they can make best use of training programs to make their employees perform well on job.

RESEARCH PROBLEM:
This study begins from the realization of the need to effectively administer the effect of training
on employee performance. Training is a systematic process to enhance employee’s skill,
knowledge and competency, necessary to perform effectively on job. Overall, training impacts
organizational competitiveness, revenue and performance. Unfortunately, the majority of
governmental, private organization and international organizations are not recognizing the
importance of training to increase their employee's productivity and when the economy slows or
when profits decline, many organizations first seek cuts in their training budgets. This will lead to
high job turnover then increase the cost to hire new employees which low down the organizational
profitability.
Past researches proved a positive link between training and employee performance, as training
brings benefits for the employee along with for the firm by positively impacting employee
performance through the enhancement of employee’s competencies and behavior. Firms that
focuses on shareholders and customer satisfaction realized the importance of investing in training,
and thus recognizes the worth of employee development.

RESEARCH OBJECTIVES:
 To investigate the meaning and importance of training.
 To identify the significance of employee performance.
 To explore the relationship between Training and employee’s performance.
 To develop guideline for assessing the employee performance

HYPOTHESIS:
 Training has a positive effect on employee performance

RESEARCH QUESTIONS:
 How training affect the employees’ performance.

Literature review:

According to Hawthorne studies, and many other research work on productivity of worker
highlighted the fact that employees who are satisfied with their job will have higher job
performance, and thus supreme job retention, than those who are not happy with their jobs.
Moreover, it is stated that employees are more likely to turnover if they are not satisfied and hence
demotivated to show good performance. Employee performance is higher in happy and satisfied
workers and the management find it easy to motivate high performers to attain firm targets. The
employee could be only satisfied when they feel themselves competent to perform their jobs, which
is achieved through better training programs.
Recognizing the role of training practices, enable the top executives to create better working
environment that ultimately improves the motivational level as well as the performance of the
workforce
According to Leonard-Barton an organization that gives worth to knowledge as a source of gainin
g competitive edge than competitors, should build up system that ensure constant learning, and o
n the effective way of doing so is training. Prefer highlights that well-trained workforce is more c
apable of achieving performance targets and gaining competitive advantage in the market. Traini
ng is determined as the process of enabling employee to complete the task with greater efficiency
, thus considered to be vital element of managing the human resource performance strategically.
As depicted by the work of Harrison, learning through training influence the organizational
performance by greater employee performance, and is said to be a key factor in the achievement
of corporate goals. However, implementing training programs as a solution to covering
performance issues such as filling the gap between the standard and the actual performance is an
effective way of improving employee performance.
According to Wright, employee competencies changes through effective training programs. It not
only improves the overall performance of the employees to effectively perform the current job but
also enhance the knowledge, skills an attitude of the workers necessary for the future job, thus
contributing to superior organizational performance. Through training the employee competencies
are developed and enable them to implement the job related work efficiently, and achieve firm
objectives in a competitive manner.

Reports that there is a positive correlation between effective training program and employee
productivity, however to make it possible, it is the responsibility of the managers to identify the
factors that hinders training program effectiveness and should take necessary measures to
neutralize their effect on employee performance. In concluded that high level of employee
commitment is achieved if training achieve learning outcomes and improves the performance, both
on individual and organizational level. These findings are also consistent with the results of
research work.
Although the above literature provides the evidences regarding the benefits of training and its
positive influence on employee performance.

RESEARCH FRAME WORK:

Being the intellectual property of the firm, employees proves to be a good source of gaining
competitive advantage and training is the only way of developing organizational intellectual
property through building employee’s competencies.

Employee
Training
Performance
Independent variable dependent variable

INDEPENDENT VARIABLE DEPENDENT VARIABLE

TEAM WORK

EMPLOYEE
EMPLOYEE
PERFORMANCE
EMPOWERMENT

TRAINING

METHODOLOGY:
This research is based on quantitative techniques. For quantitative techniques, proper hypothesis
is developed and will be tested with proper statistical techniques. The collected data will be
analyzed through Statistical techniques and use (SPSS). Descriptive statistics will also be used for
variable description and analysis. Secondly, Regression analysis will be used for analyzing
variables of the study.

DATA AND SAMPLE SIZE:

The population of my research consist of the employees of government and private organizations
and institutes. However, the sample size is 15 to 25 and Convenience sampling would be used to
gather the data.

Frequency variables:
The frequencies of variables of age and gender as follows

Frequencies

Statistics
Age Gender
N Valid 12 12
Missing 0 0

Frequency Table

Age
Cumulative
Frequency Percent Valid Percent Percent
Valid Below 30 10 83.3 83.3 83.3
31 - 40 2 16.7 16.7 100.0
Total 12 100.0 100.0
Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 9 75.0 75.0 75.0
Male 1 8.3 8.3 83.3
3 1 8.3 8.3 91.7
4 1 8.3 8.3 100.0
Total 12 100.0 100.0

Pie Chart
RELIABILITY
/VARIABLES=EP1 EP2 EP3
/SCALE ('ALL VARIABLES') ALL
/MODEL=ALPHA.

Reliability

Scale: ALL VARIABLES


Case Processing Summary
N %
Cases Valid 12 100.0
Excluded 0 .0
Total 12 100.0
a. List wise deletion based on all variables in
the procedure.

Reliability Statistics
Cronbach's
Alpha N of Items
.088 3

RELIABILITY
/VARIABLES=TW1 TW2 TW3
/SCALE ('ALL VARIABLES') ALL
/MODEL=ALPHA.

Reliability

Scale: ALL VARIABLES

Case Processing Summary


N %
Cases Valid 12 100.0
Excludeda 0 .0
Total 12 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's
Alpha N of Items
.153 3

RELIABILITY
/VARIABLES=EE1 EE2 EE3
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA.

Reliability:
Scale: ALL VARIABLES

Case Processing Summary


N %
Cases Valid 12 100.0
Excludeda 0 .0
Total 12 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's
Alphaa N of Items
-1.897 3
a. The value is negative due to a
negative average covariance
among items. This violates
reliability model assumptions.
You may want to check item
codings.

RELIABILITY
/VARIABLES=T1 T2 T3
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA.

Reliability

Scale: ALL VARIABLES


Case Processing Summary
N %
Cases Valid 12 100.0
Excludeda 0 .0
Total 12 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's
Alphaa N of Items
-.004 3
a. The value is negative due to a
negative average covariance
among items. This violates
reliability model assumptions.
You may want to check item
codings.

COMPUTE EP=(EP1 + EP2 + EP3) / 3.


EXECUTE.
COMPUTE TW=(TW1 + TW2 + TW3) / 3.
EXECUTE.
COMPUTE EE=(EE1 + EE2 + EE3) / 3.
EXECUTE.
COMPUTE T=(T1 + T2 + T3) / 3.
EXECUTE.
CORRELATIONS
/VARIABLES=EP TW EE T
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE.

Correlations:
Correlations

EP TW EE T
EP Pearson Correlation 1 -.883** .073 -.133
Sig. (2-tailed) .000 .823 .680

N 12 12 12 12
TW Pearson Correlation -.883** 1 -.167 .243
Sig. (2-tailed) .000 .604 .446
N 12 12 12 12
EE Pearson Correlation .073 -.167 1 -.268
Sig. (2-tailed) .823 .604 .400
N 12 12 12 12
T Pearson Correlation -.133 .243 -.268 1

Sig. (2-tailed) .680 .446 .400

N 12 12 12 12

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


Conclusion:
The main objective of every training session is to add value to the performance of the
employees; hence all type of businesses design training and development programs of their
employees as a continuous activity. Purpose of training is what employees would attain after
experiencing the training program. Some of the organizations plan and implement the training
program for their employees without identifying the purpose and objectives and without
knowing what the knowledge, skills and abilities employees would learn at the end of the
training program and whether they will be able to attain performance targets on job. Therefore,
firm must design the training program with clear goals and objectives while keeping in mind
the particular needs of both individual and the firm.
This study in hand chiefly focuses on the role of training in enhancing the performance of the
employees. Training plays vital role in the building of competencies of new as well as current
employees to perform their job in an effective way. It also prepares employees to hold future
position in an organization with full capabilities and helps to overcome the deficiencies in
any job related area. Training is considered as that sort of investment by the firm that not only
bring high return on investment but also supports to achieve competitive advantage.
Employees referred as the rare, non-imitable and valuable resource of the firm and the success
or failure of any business mainly relies on its employee’s performance. Thus, organizations
realizing the fact are willing to invest in training programs for the development of their
employees. Effective training is considered to be a key factor for improved performance; as it
can enhance the level of employee and firm competency. It supports to fill the gap between
what performance if required and what performance is happening, i.e. gap between desired
performance and actual employee performance. Training need referred to any deficit in
performance, which can be relieved by appropriate training. There are different methods of
overcoming deficiencies in employee performance on job, and training is one of them.
Particularly training develops skills, competency, and ability and ultimately improves
employee performance and organizational productivity.
Training programs is the stimulant that workers require to improve their performance and
capabilities, which consequently increase organizational productivity. Therefore, training
should be designed on the basis of firm specific needs and objectives. Effective training is the
thoughtful intervention designed at attaining the learning necessary for upgraded employee
performance.

REFRENCES:
SR Manzoor - … Journal of Academic Research in Business …, 2017 - academia.edu
A Ameen1&2, MN Baharom - Asian Journal of Multidisciplinary …, 2019 - researchgate.net
FHM Taufek, M Mustafa - Global Business and Management …, 2018 - search.proquest.com
QUESTIONARE THAT ARE USED TO COLLECT DATA:
Academic Survey

Dear Participant,
I am conducting a research study on the “THE EFFECT OF TRAINING ON
EMPLOYEE PERFORMANCE” as part of my Bachelor’s thesis at University of
Lahore and I would like to encourage you to take some time out to participate in this
study. The responses obtained from you will strictly remain confidential and will only be
used for academic purposes. The results of this study will be calculated by only using an
aggregated score.

Gender:
1. Male
2. Female

Age:
1. Below 30
2. 31 – 40
3. 41 – 50
4. Above 50

Using the scale given below, rate your experience with the brand you hate:
1 (Strongly Disagree) 2 (Disagree) 3 (Neutral) 4 (Agree) 5 (Strongly Agree)

SD D N A SA
Is Training and development boost up the morale
1 1 2 3 4 5
of the employee?
Is Training and Development brings positive
2 1 2 3 4 5
attitude in employee?
Most of the employers consider training and
3 1 2 3 4 5
development waste of time and waste of money?
Training and development reduce the stress of the
4 1 2 3 4 5
employees?
Do you think Training could be seen as an
5 Organizational effort aimed at helping an employee 1 2 3 4 5
to acquire basic skills
SD D N A SA
Training promises employee success in an
6 1 2 3 4 5
organizations
Training of either upper line or lower line
7 employee, is most important for successful 1 2 3 4 5
organization
Training program are conducted every month In
8 1 2 3 4 5
organization
Training of every employee of an organization is
9 1 2 3 4 5
done on same platform
After every month there is a special workshop for
10 the training of the employee for the successful 1 2 3 4 5
projects of an organization
SD D N A SA
11 Training always Deliver the Promised Content 1 2 3 4 5
12 Training effectiveness is only for the organization 1 2 3 4 5
Training impacts both positive or negative on
13 1 2 3 4 5
employees

Thank you for your time and cooperation.

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