THE EFFECT OF TRAINING AND DEVELOPMENT ON EMPLOYEE’S PERFORMANCE IN SMALL SCALE BUSINESS (A CASE STUDY OF SELGIC VENTURES NIGERIA LIMITED)
This study titled “The effect of training and development on employee’s performance in small scale business” is aimed at finding out the adequacy of training and development programme provided to the staff of Selgic Ventures Nigeria Limited, Abuja. The success of any organization is not only determined by the quality of personnel available, but how adequate these human resources are harnessed and co-ordinate towards achieving the goal of the organization. The importance of training and development is more obvious given the growing complexity of the work environment, the rapid change in organizations and advancement in technology. Training and development assist the organizational members to posses the knowledge and skills they need to perform their job effectively, take a new responsibilities and adapt to ever changing conditions. The study is a descriptive research and adopted the system theory. To guide the study, design and a simple random sampling technique. Questionnaire was the instrument used for data collections. The data collected was analyzed using the t-test statistics. The finding indicated that: There is significant positive relationship between training and development on employee performance. The study recommends that organizations should make training and development of their employees a regular activity. Training has to involve more than just basic skill development. That is, to use training to gain a competitive advantage organizations should view training broadly as a way of creating intellectual capital. The organization should be effective in integration of resources, physical and human capital. The organization should be effective in integration of resources, physical and human will to yield high output or productivity.
Training and Development is a function of human resource management concerned with the organizational activity aimed at bettering the performance of individuals and groups in an organization.
Training is the activity that is focused upon and evaluated against the job an employee is currently holding.
Development focuses upon the activities that the organization or employer as well as the employee may partake in future and it’s almost impossible to evaluate.
The effect of training and development in an organization cannot be over emphasized, as it is the bedrock of organizational efficiency, proficiency and profitability. Any organization that wants to stand the test of time must engage both management and staff in training and development which is the essence of this research work.
1.2 BACKGROUND TO THE STUDY
Training and development plays significant role in achieving organizational objectives by keeping in view the interest of employees and organization (Stoner, 2002). To achieve the organizational goals employee performance is important that depends on a variety of factors. But training receives high importance as it improves the skills, capabilities, confidence and competencies. Training include ‘soft’ skills such as software training, management training. Whereas development focuses upon the activities that enhances employees skills for future. Employee development is a long term process that comprises, mentoring, succession planning, coaching etc.
In short to achieve the organization goals, role of human capital lead to organization growth and development and human capital is totally related with training, if your employee is trained he/she can perform better in organizations. The main purpose of this study is to determined the effect of training and development on organizational performance. Organizations should focused more on training than on cost control and efficiency because organization cannot get effectiveness without training and development.
1.3 STATEMENT OF RESEARCH PROBLEM
Considering the important role of training and development in bringing small scale business to an enviable height, if those that are expected to execute policies of the organization and manage public affairs are not trained and knowledgeable, there would definitely be a problem. Obviously the achievement of the objectives for which they were employed might be affected. As the popular adage says, “if a naked man promises you clothes, ask him which one”. Where the human capital is not planned, organizations will be confronted with the inability to deliver quality service, inability to attract and retain the people required and difficulty in the development and training of highly talented personnel. Training on the job and some form of in-service training are examples of training being designed or intended to develop the knowledge or expertise, greater confidence and a higher degree of performance. The principal intention of training is to equip people with the knowledge required to qualify them for a particular position of employment or to improve their skills and efficiency in the position they already hold. Staff development, on the other hand, implies growth and the acquisition of wide experience for future strategies advantage of the organization. Training is therefore a key element for improved organizational competences. It helps to reconcile the gap between what should happen and what is happening – between desired targets or standards and actual levels of work performance. Thus the study focuses on the effect of training and development on employee’s performance in small scale business.
Training and development has a lots of employee’s performance. One of the factors which are a point of hesitation for the employers is “cost”, used for the training and development. Otherwise there is always a positive result from training and development. Another factor is how the employee’s performance is being influenced by training and development in context of Selgic Ventures Nigeria Limited.
1.4 OBJECTIVE OF THE STUDY
The broad objectives of the study is to assess the effect of training and development on employee’s performance in small scale business. The specific objectives of the study are to:
1. To ascertain the effect of training and development on employees performances
2. To determine the challenges associated with training and development in small scale business.
3. To highlight the benefits of training and development in small scale business.
1.5 RESEARCH QUESTION
In this study, attempt will be made to provide answers to the following questions
Does training and development influence the employee’s performance?
Is there positive relationship between on-job training and employee performance?
Is there positive relationship between training and development on employee performance?
1.6 STATEMENT OF THE HYPOTHESIS
In order to justify the purpose of the study and make answers available to the questions raised, the following three hypotheses are formulated:
Ho: There is no significant positive relationship between training and development on employee performance.
H1: There is significant positive relationship between training and development on employee performance.
Ho: Training and development does not influence the employee’s performance
H1: Training and development do influence the employee’s performance
1.7 SIGNIFICANCE OF THE STUDY
It is expected that the study will inform the Management of Selgic Ventures Nigeria Limited and other organizations that to enhance employee’s performance and increase productivity, there is the need to have and retain well trained and motivated employees. It is also to help develop and maintain a quality work life, which will provide an opportunity for employees’ job satisfaction and self-actualization. Finally, it is to aid management of Selgic Ventures Nigeria Limited to introduce modern schemes for training and development, to be able to meet the challenges of change in the future.
1.8 JUSTIFICATION OF THE S TUDY
Human resource capital which is a vital factor that determines the success of every organization can be achieved based on the kind of training and development programmes such organization has in place. This study will be a significant endeavour in promoting training and development at work place to motivate employees’ as well as acquire skills and knowledge that will enhance productivity. This study will be beneficial to the employer, employee and people that hold strategic management positions. Effective training and development in various organizations will lead to the use of effective human resources. By understanding and improving training and development needs of workers, organizations are assured of a competitive advantage.
Moreover, the study will provide recommendations on how to evaluate training and development programmes in organizations to ensure human resources development and the achievement of organizational goals.
1.9 SCOPE OF THE STUDY
Though, the concept of training and development is so broad and significant to the continuous survival of any organization. The small scale industry is service oriented and constantly required customers satisfaction, the researcher shall limit the study to Selgic Ventures Nigeria Limited.
1.1 DEFINITION OF TERMS
1. Training: Training is the organized way in which organizations provide development and enhance quality of new and existing employees. Training is viewed as a systematic approach of learning and development that improve individual, group and organization.
2. Development: Development refers to activities leading to the acquisition of new knowledge or skills for purposes of growing.
3. Employee Development: Employee development is gaining an increasing critical and strategic imperative in organizations in the current business environment. Thus organizations need to invest in continuous employee development in order to maintain employees as well as the organization success.
4. Performance: This is about employee effort. Employee performance is measured in terms of input – output relationship. It is the measure of the efficiency with which inputs or resources are utilized to create outputs. Performance is employee productivity.
5. Job Performance: The work related activities expected of an employee and how well those activities executed.
6. Job Satisfaction: This is the level of contentment employees feel about their work, which can affect productivity.
7. Job Training: This is a method of preparing an employee to perform task by providing them with information about the task, a demonstration of its performance, an opportunity for employee to imitate the demonstration and subsequent feedback.
8. Motivation: Motivation actually describes the level of desire employees feel to perform, regardless of the level of happiness. Employees who are adequately motivated to perform will be more productive, more engaged and feel more invested in their work. When employees feel these things, it helps them, and thereby their managers, be more successful.
9. Organizational Performance: This comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).
10. Human Capital: This refers to the skills, knowledge, and experience possessed by an individual, viewed in terms of their value or cost to an organization.
Armstrong, M. (2003). Handbook of Human Resource Management Practice. 9th Edition, U.K. London, Cambrian Printers Ltd.
Akuezuilo and Agu (2002). Human Resources Management in Nigeria, Business Science Books, Lagos.
Stoner, J. and Gilbert, D. (2001). Management, New York: Prentice Hall Incorporation
FOR THE REMAINING CHAPTERS OF THIS PROJECT PLS CALL; ADEFOLARIN OLAMILEKAN; 08134232272 OR 08073814436
TABLE OF CONTENTS
Title page - - - - - - - - - i
Declaration - - - - - - - - - - ii
Approval page - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - - v
Abstract - - - - - - - - - - vi
Table of content - - - - - - - - - vii-viii
List of figure - - - - - - - - - - ix
1.1 Introduction - - - - - - - - -
1.2 Background to the study - - - - - - -
1.3 Statement of the Problem- - - - - - - -
1.4 Objectives of the study- - - - - - - -
1.5 Research Question- - - - - - - - -
1.6 Statement of the Hypothesis- - - - - - -
1.7 Significance of the study- - - - - - - -
1.8 Justification of the study - - - - - - -
1.9 Scope of the study- - - - - - - - -
1.10 Definition of Terms - - - - - - - -
REVIEW OF RELATED LITERATURE
2.0 Introduction - - - - - - - - -
2.1 Conceptual Clarification - - - - - - -
2.2 Theoretical Framework - - - - - - -
2.3 Literature on the Subject Matter - - - - - -
3.0 Area of study - - - - - - - - -
3.1 Research Design and Sources of Data - - - - -
3.2 Study Population and Determination of Sample Size - - - -
3.3 Instrumentation - - - - - - - -
3.4 Procedure for Data Collection and Data Analysis - - - -
3.5 Limitations of the Study- - - - - - - -
DATA ANALYSIS, FINDINGS AND DISCUSSIONS
4.0 Data Analysis, Findings and Discussion - - - - -
4.1 Findings of the study - - - - - - - -
4.2 Discussion of the study - - - - - - -
4.3 English - - - - - - - - -
CONCLUSION AND RECOMMENDATIONS
5.0 Summary of findings - - - - - - - -
5.1 Conclusions - - - - - - - - -
5.2 Recommendations - - - - - - - -
5.3 Proposal for further studies - - - - - - -
References - - - - - - - - -
Appendix - - - - - - - - - -
LIST OF FIGURES
Figure 1: Research Model
Figure 2: The Effect of Training and Development Model