Training in Smes

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THE EFFECTS OF STAFF TRAINING ON ORGANISATIONAL PERFORMANCE IN SMALL ENTERPRISES: A CASE STUDY OF JATOMY ENTERPRISES CHUKA AND EMBU BRANCH

MC ODINGA

A Research Project Report Submitted to the Faculty of Business Studies in Partial Fulfillment of the Requirements for the Award of Bachelors of Commerce Degree of Chuka University College

CHUKA UNIVERSITY COLLEGE
DECEMBER 2012

DECLARATION AND RECCOMENDATION

Declaration
I declare that this research project is my original work and has not been presented for a degree award in any other university. Signature ………………………………
Date…………………………………
Mc Odinga
Registration: BB1/01313/09

Recommendations
I the supervisors of the above candidate declare that this project report has been presented with our approval.

Signature ------------------------------------ Date ------------------------------------ Mrs. Rael Mwirigi,
Lecturer,
Department of Business Administration,
Chuka University College

ACKNOWLEDGEMENT
I would like to acknowledge all the good people who have helped me in one way or another in carrying out this research successfully. First, I thank Jesus for giving me strength and knowledge to do this research. Secondly, my parents for believing in me and also providing the necessary finances needed for the research. Lastly but not the least I appreciate my supervisor Mrs. R. Mwirigi for immense support through vigorous guidance during the entire period. May God bless you all.

DEDICATION
This research is dedicated to my two nieces Glory Makena and Wendy Muthoni and my dad for they were my strength in the entire period of this research for their cordial love towards me. ABSTRACT
Despite the growing importance of small enterprises to Kenyan economy, very little attention has been paid to the effects of training on small enterprises performance. To determine whether training programs produce real benefits for small enterprises we must investigate the relationship between the training programs and their effect on the performance of the organization. Small enterprises face unique challenges that can be solved by intensive training. The study therefore sought to explore the methods of training that are most favorable to small enterprises, their effectiveness and the relationship between training and organizational performance. The descriptive research design was utilized in this study with a target population of 75. Purposive sampling and linear systematic design techniques were used to get a sample size of 63. Data collection was done using a single questionnaire for the respondents and interview for the supervisors. Pilot study for the questionnaire was carried out to ensure validity and reliability. Data analysis was done using the descriptive and inferential statistics mainly the chi-square test. The analysis was facilitated by use of the Statistical Package for Social Sciences (SPSS). Chi-square statistics were used to analyze the relationship between the effectiveness of the training methods and improvement in performance. The computed chi-square=7.863 and p-value=0.248 implying a 5% level of significance, hence a significant relationship between the effectiveness of the training and improvement in performance. Therefore training was highly recommended by most 100% of the respondents as a means of improving performance, it may be costly but in the long run it is beneficial. The results obtained from this study will be used by small enterprise managers and owners to design training programs for their organizations, carry out training effectively and implement training programs in their organization.

TABLE OF CONTENTS

DECLARATION AND RECCOMENDATIONii
TABLE OF CONTENTSvi
LIST OF TABLESviii
CHAPTER ONE: INTRODUCTION1
1.1 Background Information1
1.2 The Statement of the problem3
1.3 General objectives4
1.3.1 Specific objectives4...
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