Topic 6
Topic 6
Topic 6
Zuhair Abbas
________________________________
The material presented by the authors does not necessarily represent the viewpoint of editor(s) and the
management of the Khadim Ali Shah Bukhari Institute of Technology (KASBIT) as well as authors’
institute.
Abstract
The purpose of this research is to determine factors that influence employees’ training in an
organization and how they affect organizational performance. Literature review revealed that
training is one of key element that helps employees’ to acquire competence and confer
motivation and satisfaction. Employees learn teamwork, flexibility, integrity and result
oriented competencies through training. On the other hand, it also contributes positively
towards enhancement of organizational performance along with other factors. Data was
collected from two regions of National Bank of Pakistan at Karachi. Researcher used random
Analysis was done by simple regression technique with ANOVA. The results of research
have revealed that the factors of employee’s training have optimistic and significant impact
Introduction
training and impact on the organizational performance. Employees’ training plays a vital role
efficient manner. There are several reasons such as organization culture and ergonomics that
creates the barriers to perform the task. Some of the employees have lack of knowledge, skills
and competencies and failed to accomplish tasks on timely basis (Hughe and Mussnug 1997).
These days several trainings are offered to employees inside the organization, in order
to maximize the productivity and minimize the frustration. Most of the time less competent
staffs prefers to leave the work they lack competence to understand the technicalities of
assigned task (Sahinidis and Bouris 2007). Although, workforce is expected to learn new
things and shows their motivation level with the positive contribution towards organizational
performance.
Skilled human resource can tackle the critical situation in an efficient manner and soft
skills training work as a catalyst to nourish the employee’s talent. Further, entire focus of
training pays worthy attention towards increase the knowledge, skills and abilities in a
particular period of time (Sing and Mohanty 2012). Several studies covered that the training
provides extensive support to enhance the managerial skills of employees. In recent practices,
organizations allocate separate budget for the development of intellectual capital that will be
supportive for achievement of organization goals and objectives via skilled workforce.
team that shows the result in shape of sustainable organizational performance (Mathieson
2006; Jamil and Som 2007; Zakaria 2000). Furthermore, studies in the banking sector of
Pakistan show most of the employees are not well trained and skilled and unable to evaluate
their performance in most appropriate way. Several factors have been studied about
employees’ productivity but nobody still has studied the factors of employees’ training which
Keeping in view of the above facts researcher has identified that there is gape in
National Bank of Pakistan i.e. most of the employees are not capable to work in an efficient
manner. Thereby, it gives researcher a lot of courage to identify the basic reasons and suggest
the better ways to build a learning culture in the organization and enhance productivity.
Research Question
The study intended to find, what are the factors associated with the employees’
capital who can make the organization better and if they are not skilled and competent to
perform their duties and job responsibility then organizational goals and objectives cannot be
The outcomes of the study will help and support other organizations to identify the
factors that affect employees’ training and organizational performance. In addition, the study
will be helpful to human resource department of several organizations which are trying to
understand factors for employees’ productivity, learning culture and career development.
Finally this study will help stakeholders’ before opening organization to understand and plan
organizational performance.
To find out the effect of employee’s morale towards performance of an organization.
To recognize the influence of polish skills and abilities on organization.
To distinguish the impact of nourish employee’s talent on organizational performance.
To identify the impact of leadership work style on performance of an organization.
HA3: Employee’s morale has significant effect on National Bank of Pakistan’s performance.
HA4: Polish skills and abilities has significant impact on National Bank of Pakistan’s
performance.
Pakistan.
Literature Review
organizations to retain them through motivation and satisfaction. However, with globalization
and modernization, the world is changing rapidly and generating many challenges for
Sum (2009) highlighted training work as a catalyst for employees to improve their
knowledge, skills and abilities in a small phase of time whilst it help new and existing
workers in the organization to achieve their routine task with respect to the organizational
goals and targets. Benedicta & Appiah (2010) suggested that there is a confident association
Miller (2008) suggested that business owners should be aware of the relationship
between the achievement of their organizations and the outcomes of their employees. When
there is growth in productivity, the organizations earn more. This is the fundamental intellect
why organizations seize time to stay on training sessions for their employees, to additional
productivity. Disha (2010) argue that productivity support firms, industries, and countries to
attain strengthen rival advantage as industry is a drive spot used by countries in the pursuit of
competitiveness. It must be prominent from previous studies that banks which have impulse
of nonstop growth, and profitability showed superior proportion of workforce potential. Sing
and Mohanty (2012) argued that the knowledge and skills of organizational employees
innovation. Thus, training to the employees of an organization plays crucial part to meet up
knowledge, skills and competencies that provide extensive support to increase the
Goldstein & Ford (2002) maintains that “Training” describes that an organized loom
Whereas, Villasalero (2010) suggest that workers have become key elements to attain
way for their survival. Kozlowski (2001) & Kraiger (1993) claim that training not just
influence declarative knowledge or technical knowledge, but also may boost intentional
structure exposure, with appropriate information, and proficient intuition that give a skeleton
for assessing and integrating fresh experiences and information”. Apparently, the explanation
elements. Von Krogh (2001) suggests that they are the main significant foundation of
prosperity and the key to achieve sustainability with competitiveness and better profits for
organizations.
Schein (1983), Hatch (1993), Hawkins (1997), Joneset (1997), Ngwenvama & Nielsen
(2003) and Nutt (2005) stated that culture is commonly known as a cluster of communal
principles, supposition, object, language, and formal procedures that lead interface and
operation inside an organization. Furhter, Goh (1998) suggested that learning organizational
culture is a sort of culture, it inspire the gain of experience at all levels of an organization.
Such culture sustains learning and facilitates the employees to share their notions without
fright of punishment. Hence, culture is learned through beliefs, rituals, values and ethics.
Employee’s Morale
According to Seroka (2009) employee morale are the common stage of assertiveness
eagerness. However, Millett (2010) presented six rationales that why employee morale is
days; superior concentration to fact; secure administrative center; and raised caliber of job.
According to Michael (2006) in past it was considered that the role of HRM or
absenteeism and similar measurements were focused by Phillips (2005). Decenzo & Robbins
(2002) elaborated the role of HRM that it is mainly an essential structure for an personnel
utilization of personnel and other techniques to build up loyal and capable manpower. Capelli
(2008a) argued that several types of TM practices, such as trainee management schemes,
developed in the 1940s and 1950s to generate huge pools of organizational talent.
Bass and Avolio (1990 b) states that transformational leadership live when the
employees are motivated to work for superior goals and higher rank self-actualizing desires,
rather than outside payoffs and Collins’s (2001) suggest that level-five leadership. Idealized
influence and inspirational motivation in transformational leadership are similar with vision,
ecological sensitiveness, and strong joint and personal threat in charismatic leadership.
“We are no longer basically breathing through an age of great and fast-tracking change”,
further stated “but are experiencing a ‘change of age’ – as momentous as the transition from
an agricultural to an industrial economy.” Alvin Toffler has labeled the growing age the
‘Information Age’. In addition, Nicholas Negroponte highlights that it is the ‘Digital Age’,
Kenichi Ohmae offers the ‘Golden Age’, Whereas Charles Handy seizing the
misunderstanding of several terms in the ‘Age of Paradox’. Even the Economist currently
Research Methodology
The research is a descriptive study which is quantitative in nature and mostly based on
primary data collection methods. However, secondary data was also including from research
articles and electronic resources in the research to justify the work done. The sample was
taken from both male and female employees working in National Bank of Pakistan, Karachi.
Questionnaire was developed for working group Management Trainee, Managers, Assistant
Managers, OG-I, OG-II and OG-III officers and other employees of National Bank of
Pakistan, Karachi. In this study, the sample technique was non probability snowball method
and research was conducted in natural environment with minimum interference from the
In this study researcher’s population was the entire category of employees of National
crucial to recognize features of the sample which it holds; therefore results can be simplified
in broader population. Sample has been taken from reachable population i.e. group of
individuals having similar characteristics. The sample was taken from both male and female
The table 2 shows that sample is n = 119 and the most valuable factors influence
(Employee tacit knowledge mean 4.31 which shows that respondents are closer to “strongly
agree” and organization performance mean is 3.90 where respondents are “agree”. The
81%. It indicates data are spread out over a large range of values. Whereas, employee tacit
knowledge has σ = 48% which shows data have very close mean.
performance = -.339 it indicates that if skewness is less than −1 or greater than +1, the
distribution is highly skewed. Polish skills and abilities skewness = -1.6 and Leadership work
Table 3: Correlation
Employee’s Learning Polish Nourish Leadership
Org. Emp’s
Tacit Culture skills & Employee’s Work
Performance Knowledge Environment Morale abilities Talent Style
Pearson Org.
1.000 .191 .371 .468 .245 .667 .550
Correlat Performance
ion Emp’s
Tacit .191 1.000 .292 .403 .012 .213 .346
Knowledge
Learning
Culture .371 .292 1.000 .339 .224 .269 .490
Environment
Employee’s
.468 .403 .339 1.000 .262 .456 .558
Morale
Polish skills
.245 .012 .224 .262 1.000 .349 .229
And abilities
Nourish
Employee’s .667 .213 .269 .456 .349 1.000 .542
Talent
Leadership
.550 .346 .490 .558 .229 .542 1.000
Work Style
The above table shows that organizational performance and nourish employee’s talent
with .667 which indicates that there is a strong positive relationship between organizational
employee tacit knowledge with .191 showing a positive relationship between these two
variables. However, organizational performance and learning culture environment with .371
showing there is a positive relationship between these two variables. Whereas, organizational
performance and employee’s morale is .468 which indicates that there is a good positive
Moreover, organizational performance and polish skills & abilities with .245 showing
style with .550 indicating that there is a good positive relationship between organizational
performance and leadership work style. Furthermore, polish skills & abilities and employee’s
tacit knowledge with .012 indicating that there is positive relationship between two variables.
Finally, leadership work style and employee’s morale with .558 showing a good positive
R square is 0.52 which indicates that about 52% of the variation on the dependent
variable is explained by the predictor variable which is moderately good. Adjusted R-Square
shows that 49% of the variance was explained by independent variables which means 49.4%
of the changes in the organization performance can be explained by the changes in the
employee’s tacit knowledge, learning culture environment, employee’s morale, polish skills
and abilities, nourish employee’s talent, leadership work style. Std. Error of the Estimate is
.57622 compared with the mean of the “Predicted" values of the dependent variable. The
value of the Durbin-Watson statistic ranges from 0 to 4 and in the above table the value of
Table 5: ANOVA
Model Sum of Squares Df Mean Square F Sig.
1 Regression 40.279 6 6.713 20.219 .000a
Residual 37.187 112 .332
Total 77.466 118
The study has sig = .000 means that our model shows the model is overall fit and
The results of this research study have revealed that the factors of employee’s training
Pakistan. In spite of that, this research has provided precious knowledge and information to
bank about the meaning of employee’s training in increasing performance. Therefore, it can
be concluded that the banks which train their employees in a proper way can gain
considerable improvement in productivity and can serve more number of customers with
satisfaction. Training is the mandatory for employees to progress knowledge, skills and
In this age of technology, employee’s training has become essential as the workplace
systems and other task technologies (Colquitt 2000, Howard 1995 and Quinn ones 1997).
The three key findings of this research study are nourishing employee’s talent,
leadership work style and employee’s morale which have strong positive relationship with
fulfill their existing and future needs which help them to cope with rapidly changes in labor
market and competition. Secondly, leadership work style is the main element for the bank’s
growth, the bank that has good leadership creates an environment for employees to perform
tasks efficiently and appreciate their hard working efforts for the bank. Third factor
employee’s morale which means bank gives them appreciation, respect and rewards.
In this research after discussing the facts and findings researcher recommends as
follows:
This study provides an empirical evidence of factors that affect training of employees and
organizational performance that can provide insights for sectors of Pakistan such as
banking industry, education sector, petroleum sector and textile sector etc.
Leadership training programs should be initiated for employees to develop leadership
traits.
Governmental departments should launch effective training programs for their employees
so that they can handle the challenging environment of information age and technological
rapid changes.
Training programs have become essential for building employee’s skills and knowledge.
Everyone organization should implement it.
Bank’s current training programs are effective but the company should also reflect on
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