01. INTRODUCTION

1.1 RESEARCH TOPIC

ANALYSIS OF THE IMPACT OF TRAINING AND DEVELOPMENT ON THE EMPLOYEE JOB PERFORMANCE OF FINANCE INDUSTRY IN SRI LANKA (WITH RELATED TO OPERATIONAL LEVEL EMPLOYEES IN ABC COMPANY)

1.2 BACKGROUND OF THE COMPANY

Finance sector is playing a vital role in any economy since it provides a major contribution to country’s financial stability. In Sri Lanka it helps to achieve economic growth in the country, while providing various types of services to the nation. The continued growth of this sector will be a favorable sign for any country in achieving its economic development programs.

ABC Company is one of the Non Banking Financial Institutions in Sri Lanka which is among top 5 NBFIs in the country. The training of staff in head quarters and branch offices would be a matter of priority for the well being of the industry as well as poverty mitigation and rural development, which could be addressed through a team of well trained staff who could explain many schemes of rural development to the people in the area through marketing of novel banking and financial products for the benefit of both parties.

ABC Company provides training to their employees in the field of Savings, Deposits, Credit, Marketing, Management, International Banking, Computer and General Banking. They conduct In-house training and outbound trainings.

As employees training and job performance are inter-related, this study aims to identify the level of training and development and its’ impact on employees’ job performance.

By providing training to their employees, the bank can review its own system and further improve them by benchmarking against international standards in order to become “Well Performed Organizations”

02. RESEARCH PROBLEM

Ultimate purpose of the organization is to conduct their day to day functions and processes, efficiently and effectively while achieving its’ organizational objectives. A major source of competitive advantage in service business is having a high degree of relationship between customers and employees. In training programs, experts in the respective field work with certain employees to transfer them certain areas of knowledge or skills in order to improve the performance of their current jobs. In recent times customers’ demands increasingly a higher level of service quality. Market is dynamic and new strategic planning is essential to manage the increased competition among suppliers of financial service products.

Managers demand more efficiency, accuracy and effectiveness in less time and cost because of the modern business trends and they can be achieved only through design, development and deployment of excellent training programs to the employees.

So they attempt to identify the degree of appropriate training programs of ABC Company to meet their employees’ job performance.

• Thus the research problem is formulated as “Is there any impact of the employee training and development to the job performance in the Finance Industry of Operational Level Employees?” (With Related to ABC Company)

The entire Banking and finance sector need to move in line with country development plans, professionalism in the sector is the key for survival and success at all times. In service business industry, the quality of workforce and its commitments towards tasks become a major source of competitive advantage; especially it will be possible when there is a high degree of relationship between customers and employees. Hence, this study attempts to identify the degree of appropriate training and development programs of ABC Company to meet their employees’ job performance.

2.1 RESEARCH QUESTION

Ø Do the employee training and development affect to the employee job performance of the ABC Company?

Ø Is there any Impact of employee training and development to the job performance of ABC Company?

Ø “Is there increase of employees’ job performance of banking and financial sector by training and development programs?”

03. RESEARCH OBJECTIVES

The main objective of this study is to identify the relationship between Employee training program and Job performance. Employees’ trainings improve their job performance and increase the organization’s productivity and quality.

Primary Objectives

Ø To find out is there any impact of training programs and employees’ job performance.

Ø To find out the strength of association between the training program and employees ‘Job performance.

Secondary Objectives

Ø To find out which training program that mostly determines the employees’ job performance.

Ø To give suggestions to develop or improve the training programs of the Banking and Financial Sector Organizations.

04. SIGNIFICANCE OF THE RESEARCH

This study attempts to identify the degree of the training programs that satisfy the employees’ requirements promptly and assess the suitability between the training and the job performance. In addition, the world of banking is becoming increasingly complex day to day, and is highly subjected to changes in its market and in the technological environment. The skill, knowledge and training required for a bank staff is growing and changing from time to time. They are investor protection, legislation, information systems and to face off competitive pressures. This study could enable organizations to get suitable alternatives or take corrective action to reward tools which will assist them in reaching job performance.

1. The Impact of Training and Development on Employees’ Performance and Productivity

2. Enhanced Job Knowledge, Skills and Abilities:

3. Saving Time and Costs:

4. Employee Satisfaction:

4.1 SCOPE OF THE RESEARCH

Training and Development is one of the main functions of the human resource management.

Training refers to a systematic setup where employees are instructed and taught matters of technical knowledge related to their jobs. It focuses on teaching employees how to use particular machines or how to do specific tasks to increase efficiency.

Whereas, Development refers to the overall holistic and educational growth and maturity of people in managerial positions. The process of development is in relation to insights, attitudes, adaptability, leadership and human relations.

Importance of Training and Development in an Organizational Productivity

Increase in quality of work
Improvement in employee performance
Consistency in work performance
Ensuring worker satisfaction

After hiring employees and staffing, the organization’s next job is to ensure that their employees are effectively oriented and trained. This research will focus on the training process, methods, importance of training and job performance, purposes, objectives and finding of earlier researches and new findings and recommendations. In fact, successful training programs try to increase the job performance in the banking and financial sector.

Data collection methods, analysis of data and presents the data in various figures and tables. Data are analyzed through Correlation, Regression (Simple), and Percentage Analysis. Data are presented by tables and graph. Furthermore, Researcher will include the Discussion, Conclusions and Recommendations.

4.2 LIMITATIONS OF THE RESEARCH

There are many limitations for any event. Likewise there are no exceptions in the Research Report too. The identifying limitations will be as follows:

I. The researcher will be getting data through questionnaires providing to the employees. So the research will be influenced and affected by their decisions.

II. The time available to carry out the study will be very limited.

III. The Organizational confidential information will not be provided.

IV. The researcher wouldn’t get the data base of the employees in the Banking and Finance Sector Industry Human resource department because of the organizational restrictions.

05. LITERATURE REVIEW

5.1 DEFINITIONS

Definitions of Training and Development

In the rapid changing world of business and environment, organizations realize its limitation of dealing with new challenges, so the firms invest in training programs to make their employees competent enough to face day to day operations and also uncertainties which they need to take effective decision in time, in order to remain competitive in the market.

Training refers to a planned effort by a company to facilitate employees’ learning of job related competencies. These competencies include knowledge, skills or behaviors that are critical for successful Job performance. (Noe and Kodwani,2012)

Training can be explained as, Assessing employee strengths and weaknesses and providing opportunities for employees to increase their skills/knowledge. Providing training or coordinating with appropriate resources to obtain relevant training and arranging for both formal and informal learning opportunities. Mandating training where needs/policy exists. (Dessler, 2003)

It is a Formal process of changing employee behavior and motivation in the way that will enhance employee Job Performance and then organizational performance. (Opatha, 2009)

Effective training is beneficial for the firm in variety of ways, such as, it plays a vital role in building and maintaining capabilities, both on individual and organizational level, and thus participates in the process of organizational change (Valleet al., 2000)

Training and Development is explained as a subsystem of an organization which emphasize on the improvement of the performance of individuals and groups. Training is an educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the performance of the employees.

Effective Training and Development programs make good & efficient training of employees helps in their skills & knowledge development, which eventually helps a company improve.

Productive training and development programs aimed at improving the employees’ performance. Training refers to bridging the gap between the current performance and standard desired performance. Training could be given through different methods such as on the coaching and mentoring, peers’ cooperation and participation by the subordinates. This team work enable employees to actively participate on the job and produces better performance, hence improving organizational performance

Training programs not only develops employees but also help an organization to make best use of their human resource in favor of gaining competitive advantage. Therefore, it seems mandatory by the firm plan for such training programs for its employees to enhance their abilities and competencies that are needed at the workplace (Jie and Rogger, 2005)

Definition of Job Performance

Employee performance leads a company to its success or its failure. Employee performance contains factors such as quality, quantity, and effectiveness of work. Successful employee performance leads the organization to meet its high business performance.

Employee performance refers to how employees behave in the workplace and how well they perform their job duties.

Performance means both behaviors and results behaviors emanate from the performance and transform performance from abstraction to action. Not just the instruments for results behaviors are also outcomes in their own right the product of mental and physical effort applied to tasks and can be judged apart from result. (Armstrong, 1996)

“Performance is a multidimensional construct the measurement of which varies depending on a variety of factors (Bates and Holton, 1995)

5.2 THE RELATIONSHIP BETWEEN TRAINING AND JOB PERFORMANCE

Human resource has identified as most valuable resource in any organization. The human capital of each organization must reach to the highest level for profit maximization and organizational growth. Many strategies have been implemented to increase the productivity of employees, such as job and organization design, public relations, staffing, motivation, rewards and training & development. Among these, Training & Development is the most significant factor required to obtain maximum output from the human resources. It can be used to improve or develop job related performance requirements of the employees.

Generally the relationship between training programs and job performance should be positive. We can illustrate positive relationship. Good leadership style as to fit for the organizational conditions may be satisfied the workers identifying weakness of employees may be best one to improve the worker’s performance because it includes the area which training should be provided and motivating employees to achieve the high level of satisfaction and performance . (Velnampy, 2006)

Employee ability will increase directly by increasing knowledge, skills and attitude due to training and development. When the employee ability increases, his / her self-confidence in performing the duties and responsibilities successfully and self-esteem will increase. Consequently the employee motivation will increase. Training and development will indirectly lead to increase motivation; finally employee Job performance will increase. Primary purpose of T & D is to increase organizational performance by increasing employee Job Performance. (Opatha, 2009)

06. RESEARCH METHODOLOGY

6.1 CONCEPTUAL FRAMEWORK

Conceptual model attempts to visualize the causality of the study problem prior to undertaking study based on the research question .The argument would analyze the impact of employees training programs and job performance.

Employee

Job Performance

Independent Variable Dependent Variable

07.

Employee

Training and Development

08.

Computer Skill Training Programs

Seminars and Workshops

Employee

Job Performance

6.2 HYPOTHESIS

Based on conceptual relationship three hypotheses were formulated on this research.

H1: There is an impact of training and development program and employees’ job performance.

H2: There is no any impact of training and development program and employees’ job performance.

6.3 SAMPLE DESIGN

This research can be identified as quantitative study and will be conducted to analyze the impact of employee training and development on the job performance of Operational Level Employees in ABC Company. ABC Company is having two main categories of employees. They are marketing and operational.

6.3.1 Population:

All operational level employees of in ABC Company will consider as the population of the research. As ABC Company is having its head quarters and 71 branches all over the country, there are 959 operational level workers working with the company 463 no of operational employees are working in head office and others are working in side branches. Each branch is having 4 or 5 operational level officers.

6.3.2 Sample:

Sample size can be decided according to the “Sample size table” which is used by research advisors. As operational level employees working in the ABC Company are 959 in number, the sample size should be 275, according to the “Sample size table”

As there are 463 operational level employees in Head Office and 496 employees are in branches. Therefore Sample size can be selected as 133 employees from head office and 142 employees from branches

6.3.3 Sampling Technique

The researcher would be able to get the data base of the employees of the ABC Company in the Human resource department. Based on that, researcher prefers to go with the probability sample method, since sampling permits the researcher to make statistical generalization from sample to population

6.4 DATA COLLECTION METHOD

In the research the researcher collected the data in the following ways.

6.4.1 Primary Data

a) Questionnaire

b) Interviews

c) Observation

6.4.2 Secondary Data

a) Annual Reports

b) Journals

c) Training Records

In this study, primary and secondary data are used. Primary data collected through the questionnaire and interviews and Secondary data are collected from annual reports and training records

6.5 DATA ANALYSIS TECHNIQUE

Data collects from primary and secondary sources will be analyzed. Researcher tries to find out the relationship among the variables with the help of correlation and regression analysis with graphs by using Microsoft Excel package and SPSS package. Primary data will be analyzed by using the following statistical techniques

1. Descriptive Analysis

2. Percentage Analysis

3. Correlation Analysis

4. Regression Analysis

07. TIMEFRAME OF THE STUDY

Stages of the Research Study

1st Week

2nd Week

3rd Week

4th Week

5th Week

6th Week

7th Week

8th Week

9th Week

10th Week

11th Week

12th Week

13th Week

14th Week

15th Week

16th Week

Literature Review : Collecting relevant information from past studies

Preparation of Research Proposal

Approval for the research proposal

Designing the Questionnaire

Collecting Data

Analyzing Data

Conclusion and Recommendation

Preparation of Final research

Final Research Submission

Colombo Stock Market Financial Research

Monday, February 20, 2023

ANALYSIS OF THE IMPACT OF TRAINING AND DEVELOPMENT ON THE EMPLOYEE JOB PERFORMANCE OF FINANCE INDUSTRY IN SRI LANKA (WITH RELATED TO OPERATIONAL LEVEL EMPLOYEES IN ABC COMPANY)