A CASE OF KENYA COMMERCIAL BANK (KCB)
A thesis presented to the School of Business and Economics
In partial fulfillment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION
In Strategic Management and Human Resource Management
EFFECT OF TRAINING ON STAFF PRODUCTIVITY IN KENYAN BANKS:
A CASE STUDY OF KENYA COMMERCIAL BANK (KCB)
In accordance with Daystar University policies, this thesis is accepted in partial fulfillment of requirements for the Master of Business Administration degree.
Mr. Thomas Koyier,
_____________________________ ____________________ Prof. David Minja, Reader.
EFFECT OF TRAINING ON STAFF PRODUCTIVITY IN KENYAN BANKS:
A CASE STUDY OF KENYA COMMERCIAL BANK (KCB).
I declare that this thesis is my original work and has not been submitted to any
other college or university for academic credit.
Signed: ____________________________ Date: ________________ Abongó Chacha
The objectives of the study were to analyze the effect of training on staff productivity in Kenyan banks. This involved determination of the effectiveness of training methods and their effects in employees’ productivity. The study also aimed to recommend the best strategies in employees training. This study covered 15 branches of one of the major banks in Kenya (Kenya Commercial Bank, KCB). Stratified sampling method was applied to select the bank branches and purposive sampling was applied to select 80 respondents of the study. The survey questionnaire was utilized in the data collection. The data collected was therefore descriptive in nature. Descriptive statistic technique and multiple regression analysis were applied in the analysis of the collected data. The major findings of the study showed that the common employees’ training strategies in KCB were on-the-job training, e-learning training, class-room training and workshop training. The effectiveness of the training methods applied by the KCB was relatively high as evidenced by the effectiveness of the detailed content of e-learning programs; well organized e-learning programs; importance of on-the-job training programs in employees’ deeper understanding of various concepts in the banking services for instance; On-the-job training methods enabled the employees to learn about the rules and principles of work, courtesy, manners and techniques of handling interpersonal relations. The results also show that the current training methods applied at the KCB have been effective at great extent in promoting productivity of the employees. This means that there is improved work output per time, efficiency, accuracy and more skills are developed among the employees. The most effective training strategies in enhancing productivity of the employees were deemed to be on-the-job training, seminars/ workshop training and e-learning while class-room training showed less significant effect in employees’ productivity.
TABLE OF CONTENTS
TABLE OF CONTENTS v
LIST OF FIGURES viii
LIST OF TABLES ix
CHAPTER ONE 1
INTRODUCTION AND BACKGROUND OF THE STUDY 1
Background of the Study 1
Profile of Kenya Commercial Bank (KCB) 8
Statement of the Problem 9
Purpose of the Study 10
Objectives of the Study 10
Research Questions 10
Significance of the Study 12
Definition of Terms, abbreviations and acronyms 13
Chapter Summary 13
CHAPTER TWO 14
LITERATURE REVIEW 14
Theoretical Framework 14
Human Capital Theory 14
Kirkpatrick 's learning and training evaluation theory 16
Effects of Training on Employee Productivity 17
Training and Employee performance 18
Training and Employee Commitment 20
Training Methods and Employee Productivity 21
Training and Employee Effectiveness 24
Training Quality and Performance 27
Models for Measuring the Effectiveness of Training 30
Strategic Approach to Training and Development 33
Empirical Review 37
Conceptual Framework 39
Chapter Summary 41
CHAPTER THREE 42
RESEARCH METHODOLOGY 42
Research Design 42
Target and Accessible Population 43
Sample Size 44
Sampling Techniques 44
Sampling Frame 48
Type of Data 49
Data Collection Instruments 51
Data Collection Procedure 52
Data Analysis 53
Chapter Summary 54
CHAPTER FOUR 55
DATA ANALYSIS AND INTERPRETATION 55
Response Rate 55
Employee Training Strategies used by KCB 57
Class room training 57
E-learning programs 62
On the job training 67
Effectiveness of the Employees Training methods used by KCB 71
Effectiveness of training methods on employee productivity at KCB 72
Best training strategies for maximum employee productivity at KCB 73
Regression Analysis 74
Chapter Summary 77
CHAPTER FIVE 78
SUMMARY OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 78
Summary of the Findings 78
Employee Training Strategies 78
Effectiveness of Training Methods 79
Best training strategies for maximum employee productivity at KCB 79
Appendix A: Research Questionnaire 89
Appendix B: Timeline 96
Appendix C: Budget 98
LIST OF FIGURES
Figure 4. 1: Age 56
Figure 4.2: Education level 56
Figure 4. 3: Work experience 57
Figure 4. 4: Extent to which class room training affect employees’ commitment in KCB 58
Figure 4. 5: Extent to which classroom training affect employee motivation in KCB 59
Figure 4. 6: Extent to which classroom training affect employees ' self efficacy in KCB 60
Figure 4. 7: Extent to which classroom training affect employee productivity at KCB 61
Figure 4. 8: Extent to which e-learning programs affect employees’ commitment in KCB 63
Figure 4. 9: Extent to which e-learning programs affect employees ' motivation in KCB 64
Figure 4. 10: Extent to which e-learning programs affect employees ' self efficacy in KCB 65
Figure 4. 11: Extent to which e-learning programs affect employee productivity at KCB 66
Figure 4. 12: Extent to which on job training programs affect employees’ commitment at KCB 68
Figure 4. 13: Extent to which on the job training programs affect employee motivation in KBC 69
Figure 4. 14: Extent to which the job training programs affect employees ' self efficacy in KCB 70
Figure 4. 15: Extent to which on the job training programs affect employee productivity at KCB 70
LIST OF TABLES
Table 3. 1: Sampling Frame 48
Table 4. 1: Extent of agreement of the respondents with class room training as a strategy in employee training. 57
Table 4. 2: The level of agreement on of the respondents on E learning programs 62
Table 4. 3: The level of agreement on of the respondents on on job training 67
Table 4. 4: The level of rating of the respondents on effectiveness of training methods 71
Table 4. 5: The level of agreement on of the respondents on effectiveness of training methods 72
Table 4. 6: The extent to which the following training methods affect employee productivity at KCB 72
Table 4. 7: The level of agreement of the respondents on statements on the best training strategies for maximum employee productivity at KCB 73
Table 4. 8: Coefficients of the Independent Variables 75
Table 4. 9: Analysis of Variance 76
Table 4. 10: Squared Multiple Correlation Coefficient, R2 76
INTRODUCTION AND BACKGROUND OF THE STUDY
This chapter presents a brief introduction as well as historical background of employee training. An overall background of the study has been defined clearly, problem statement, objectives, assumptions, and limitations. Key terms have been defined and operationalized. Further the researcher has shown clearly why the topic has emerged as a topic of importance to the researcher.
Background of the Study
Nadeem (2010) defined training as the process of transmitting and receiving information to problem solving. This implies that training is for specific purpose. Omole (1991) sees training as any process concerned with the development of aptitudes, skills and abilities of employees to perform specific jobs with a view to increase productivity. An organisation may have employees with the ability and determination, with the appropriate equipment and managerial support yet productivity falls below expected standards. The missing factor in many cases is the lack of adequate skills, and knowledge, which is acquired through training and development. Commenting further Iboma (2008) is of the opinion that effective training can change the entire view of workers in an organisation and make the firm more productive as new skills and attitudes are developed by workers. Looking at the indispensability of training and development to an industrial set up, Ladipo-Ajayi (1994) observed that both are very demanding ventures in any organization because people commit huge resources to them.
Training is one of the most important strategies for organizations to help employees gain proper knowledge and skills needed to meet the environmental challenges (Goldstein and Gilliam, 1990). Employee training represents a significant expenditure for most organizations.Tella and Popoola (2007) relating training to library work stated that it is as an essential strategy for motivating workers in the library as a service organization. For the Librarian or information professional to have opportunities for self-improvement and development to meet the challenges and requirements to perform a task there is the need to acquire the needed skills suitable for the work at hand.
Institute for Work & Health (2010) defines training as planned efforts to facilitate the learning of specific competencies. These competencies typically consist of specialized knowledge, skills and behaviours needed for success in a particular environment. Training methods can range from a one-time dissemination of information to intensive programs administered over a long period of time.
Njavallil (2007) did study training of bank employees by doing a comparative study between new generation banks and public sector banks in India. By then, there had come about many challenges in the banking sector following the new economic policy that was introduced during the nineties. The emerging business profile of banks included newer financial services, personal investment counseling, factoring, venture capital and possibly consultancy research services. This called for new knowledge, skills and attitudes and training systems to stand up to the challenges that demanded for changes in the approaches to training. The study found that significant differences existed between the two categories of banks regarding the training provided to its employees. The differences were related to certain aspects. Based on the study it was inapt to say that the training approach of a particular type of bank was significantly enhanced compared to the other.
Sulu (2011) studied motives for training in the Nigerian banking industry focusing on the motives for training using the Nigerian banking industry as a case study .The study relied on both qualitative and quantitative analysis of data. The entire staff of the 25 commercial banks as at 2007 in Nigeria was the population of the study. The results of the analysis showed that banks saw training as important factors, as well as having motives for investing in training. These motives included - new technology; productivity; responding to skills deficiencies; moral duty; new hire request; and staff request. Some of the recommendations based on the findings include - training should be seen as one of the most important strategies for organizations to help employees gain proper knowledge and skills needed to meet the environmental challenges; it must also be noted that, training though primarily concerned with people, is also concerned with technology, the precise way an organization does business.
Ghebrecristos (1983), studied training methods and techniques in an organization using a case study of the Commercial Bank of Africa Ltd. Nairobi, Kenya. From the findings, CBA used several training methods and techniques in building the employee capability. They made use of classroom teaching, on the job training and seminars and workshops.
Ling (2007) notes that training is viewed as an expensive investment for a business organization and is often neglected during recession. The author cites a reason as the value and contribution could not be effectively ascertained. Ling (2007) mentioned that in most studies relating to training effectiveness, the focus was on establishing the relationship between training system or practices or factors (individual and organizational) with training effectiveness, with emphasis on objective, content, organizational factors, expenditures, duration of training, coverage of employees, delivery methods, profitability, growth and overall organization performance.
IAEA (2003) states that while it is abundantly clear that training can provide added value, a measured, isolated, determination of training effectiveness is difficult because personnel performance depends not only on training, but also on many other factors such as supervision, procedures, job aids, pre-job briefings, management expectations, and the experience and motivation of the workforce.
The measurement of training effectiveness i.e. how well the training inputs are serving the intended purpose has also elicited wide reviews. IAEA (2003) identified three kinds of training outputs that organisations need to measure. They are: relating to course planning, relevance, comprehension and whatever goes on in the teaching programme and the environment; the utilisation of what is learnt on the job i.e. transferring the classroom learning to the job in terms of skills, competencies, decision making, problem-solving abilities and relationships and the like; and the changes in the mind set such as work related attitudes, values, interpersonal competencies and personal attributes. Winfred, Winston, Edens and Bell (2003) noted that the continued need for individual and organizational development can be traced to numerous demands, including maintaining superiority in the marketplace, enhancing employee skills and knowledge, and increasing productivity. Training is one of the most pervasive methods for enhancing the productivity of individuals and communicating organizational goals to new personnel. The authors note that in 2000, U.S. organizations with 100 or more employees budgeted to spend $54 billion on formal training. Given the importance and potential effect of training on organizations and the costs associated with the development and implementation of training, it is important that both researchers and practitioners have a better understanding of the relationship between design and evaluation features and the effectiveness of training efforts.
Sahinidis and Bouris (2008) noted that insufficient knowledge and skills which can be imparted through training can cause employees not to feel motivated and lack commitment. Abbas and Yaqoob (2009) noted that training is designed to skill employees so they can perform well. This can be done by formally developing training programs or informally through on job training. Insufficiency in knowledge and skills may result into conflict with organizational goal achievement and eventually affecting employee performance. The authors concluded that training influences employee performance
Olaniyan and Ojo (2008) note that the effectiveness and success of an organization lies on the people who form and work within the organization. Consequently, for the employees in an organization to be able to perform their duties and make meaningful contributions to the success of the organizational goals, they need to acquire the relevant skills and knowledge. In appreciation of this fact, organization like educational institution, conduct formal training programmes for the different levels of their employees.
Institute for Work & Health (2010) identified two broad approaches to research on training effectiveness. One approach employs triangulation of multiple data sources and methods to gather data from end users of training. This method combines qualitative data (e.g. from key informant interviews, focus groups and observations) with various forms of quantitative data (e.g. from controlled study situations. These data are then used to assemble valid co-relational arguments for interpretation of results. The other approach to studying the effectiveness of training explores cause and effect relationships that are pertinent to the learning process or the application of learned material within the workplace. These studies use experimental designs to investigate factors related to the training process itself. They use measurable outcomes affecting individuals or work teams and, if feasible, gather data related to the impacts of training on the organization or relevant industry.
Haslinda and Mahyuddin (2009) examined the effectiveness of training in the public sector using training evaluation framework and transfer of training elements. The findings of this study suggest that public service employees were evaluated at all five levels of evaluation, namely, the reaction, learning, behavior change, results and transfer of training levels. Factors that can affect the effectiveness of training in the public sector include lack of support from top management and peers, employees’ individual attitudes, job-related factors and also the deficiencies in training practice. The study was done in Kuala Lampur.
A number of factors have been identified that influence the effectiveness of training in an organization. Haslinda and Mahyuddin (2009) identified the human resource policy of training, employees’ attitude and motivation, and the commitment of top management to the training and development as some of the key factors.
Pfeifer, Janssen, Yang and Backes-Gellner (2011) observe that training can serve as a screening device without increasing individual productivity, i.e., the firm learns about abilities and skills of workers and can promote the best fitting (most productive) worker to the next job in the hierarchy. They also note that training might, on the other hand, indeed increase individual productivity by teaching skills and knowledge that are important to fulfil tasks at higher job levels. Gyes (2008) uses company-level panel data on training provided by employers in order to estimate its effect on productivity and wages in the food industry in Belgium. The productivity premium for a trained worker was estimated at 23%, while the wage premium of training is estimated at 12%. The study concluded that, by training its workers, a company can realise an extra added value per worker amounting to €1,385 higher than the cost of the required training. Konings and Vanormelingen (2009) confirmed and expanded their analysis to the whole Belgian private sector. Again, the findings showed that training has a positive effect on productivity and wages. The marginal product of a trained worker is on average 23% higher than that of an untrained worker while wages increase by 12% as a result of training. Among the manufacturing subsectors, the largest productivity gains can be found in the chemicals and rubber and plastic industries. Finally, the study’s authors found no differential impact of training on the productivity of male versus female workers; however, wages increase more in response to training for women than for men. Almeida and Carneiro (2006), using a panel of about 1,500 large Portuguese manufacturing firms between 1995 and 1999, found that an increase of 10 hours per year in training per worker leads to an increase in productivity of about 0.6 per cent.
Colombo and Luca Stanca (2008) investigated the effects of training on employee productivity using a unique nationally representative panel of Italian firms for the years 2002 to 2005 and found that training activity has a positive and significant effect on productivity at firm level. Training also has a positive and significant effect on wages, but this effect is about half the size of the effect on productivity. Within occupational groups, the effect of training on productivity is large and significant for blue-collars, but relatively small and not significant for white-collars.
Profile of Kenya Commercial Bank (KCB)
The history of Kenya Commercial Bank dates back to 1896 when its predecessor, the National Bank of India, opened a small branch in the coastal town, Mombasa. In 1958 Grindlays Bank of Britain merged with the National Bank of India to form the National and Grindlays Bank. In 1970, the Government of Kenya acquired 60% shareholding in National and Grindlays Bank and renamed it the Kenya Commercial Bank. In 1976, the Government acquired 100% of the shares to take full control of the largest commercial bank in Kenya. The Government has over the years reduced its shareholding in the Bank to the current 26% with the public owning the remaining 74% (KCB, 2011).
The Kenya commercial bank has four subsidiaries; a wholly owned subsidiary, Savings and Loan (K) Ltd. was acquired in 1972 to provide mortgage finance. In 1997, another subsidiary, Kenya Commercial Bank (Tanzania) Limited was incorporated in Dar-es-salaam, Tanzania to provide banking and financial services and to facilitate cross-border trade within the East African region.
Since inception, the Kenya Commercial Bank Group has endeavoured to provide quality and customer friendly services geared towards meeting the ever-changing customer needs. This has ensured consistent growth in customer deposits that have, in turn, provided a strong reservoir for steady growth in customer borrowings every year.
Shares in KCB have, until 2004, historically underperformed most other publicly listed banks. The KCB share price has recovered dramatically since elections in 2004. KCB has more than 170 branches throughout Kenya, making it the largest banking network in the region. It has the largest number of own-branded ATMs in Kenya. Since 2004 most of the branches in Kenya have been rebranded as part of a wider corporate branding exercise.
Since incorporation, KCB has achieved tremendous growth to emerge as a leader in Kenya 's banking and financial sector. In 1970, the bank had 32 full- time branches, of which 25 were located in rural areas, five in Nairobi and two in Mombasa. Today, the KCB Group has the widest network of outlets in the country, comprising 170 full-time branches all of which represent over 55% of the total banking outlets in Kenya. Of the total outlets, 80% are located in the rural areas, with representation in all administrative districts.
Statement of the Problem
Training is an integral part of every company 's agenda. Because of the implications of training, it is important to have training that is effective. Studies have proven that more costly but effective training can save money that is wasted on cheap but inefficient training (Ginsberg and McCormick, 1998). Unfortunately, there is no rule of thumb method of effective training. Methods of training have to be analyzed and studied before companies can rely on them to train a competent workforce.
Kenya commercial bank like any other organization is in the business of providing services to its customers. For the bank to effectively serve its customers, it has to have well trained employees who ensure quality service delivery. It is very important to have a needs analysis to determine which training method works best. There are several studies in this area in the banking industry in Kenya limited studies that have studied the impact of employee training on organizational productivity. There are numerous factors to be considered in making training method decisions. Factors such as training objectives (what is aimed to be learned), cost, and trainee demographics are some important issues to be considered. The problem is to determine the effect of training on staff productivity.
Purpose of the Study
The purpose of this study is to establish the effect of training on staff productivity in Kenyan banks. The study is important in developing information necessary to lead organizations on the importance of training.
Objectives of the Study
The study will be guided by the following objectives: 1. To determine the strategies used by KCB in employee training 2. To determine the effectiveness of training methods used by KCB 3. To determine the effectiveness of training on employee productivity at KCB 4. To recommend the best training strategies for maximum employee productivity at KCB
1. What training strategies are used by KCB? 2. What effect do the training methods have on employee productivity at KCB? 3. How does employee training affect employee productivity at KCB? 4. What are the best employee training strategies for maximum employee productivity at KCB?
Training has become an increasingly critical area of management for companies to enhance service quality, reduce labor costs, and increase productivity (Enz & Siguaw, 2000). Training programs can also promote teamwork; improve staff attitudes and self-awareness (Conrade, Woods & Ninemeier, 1994). Organizations must therefore focus on these different aspects in order to maintain a competitive edge in their respective industries. Organizations should remember that training begins once an employee joins the organization and should continue throughout their tenure with the organization. Training can also be provided by everyone i.e. all employees are potential instructors and students
Kenya Commercial Bank has been selected due to its large size, presence and location across the regions. In addition it has a dedicated training centre at Karen (KCB Leadership Centre) from which courses are developed and imparted to staff. Training is seen as a fundamental and effectual instrument in successful accomplishment of the bank’s goals and objectives. Training not only improves staff resourcefully, but also gives staff a chance to learn their job virtually and perform it more competently hence increasing bank’s productivity. The ultimate implication of staff training can be noted in the bank’s bottom line. A study to evaluate the effect of training on staff productivity at KCB is thus necessary.
Significance of the Study
This study aims to explore the effect of training on staff productivity in Kenyan banks.
The study will deepen the understanding between perception and expectations as well as improve the knowledge of staff productivity by banks. Further it will address the fundamental aspect of the correlation that necessitates KCB to undertake training to improve the productivity of its staff.
This research will provide information to scholars as well as form a basis for further research to be conducted, here in Kenya as well as world-wide, regarding the effect of training on staff productivity in Kenyan banks.
The following is assumed: 1) All staff will be available for interviews. 2) Respondents are truthful when responding to questions on the survey. 3) Training is a pressing issue for many staff.
The limitations faced or anticipated are: First, due to the study limiting itself to one bank, the generalization of results can be challenged. Secondly, even though there will be a concentrated effort to get the questionnaire into the hands of all staff, there is no guarantee that the individuals will actually receive and complete the questionnaires. Lastly, due to locations of some KCB branches, some of the data collection instruments will be sent via email or sent by parcel to the branches, thereby compromising on time taken to process the same.
Definition of Terms, abbreviations and acronyms
KCB: Kenya Commercial Bank
Training – A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task.
This chapter covered the background of the research, the problem statement, the purpose of the study or general objectives of this research, the research questions, the significance and scope of the research i.e. importance of the study and the definitions of Terminologies used in this research. In chapter two, I will review relevant literature that will help build on the variables and data collection methods to be used in the study.
The chapter will review relevant literature on the effect of training on staff productivity at Kenya Commercial Bank. In order to have an in depth knowledge on the effects of employee training on employee productivity, the chapter provides relevant literature in the field of study. The first part provides an overview of training; the next part examines theoretical framework and effects of employee training on employee productivity. Mugenda and Mugenda (2003) noted that literature review involves critical review of what previous work in relation to the research problem being investigated. They argue that a properly done literature review should be extensive and thorough so as to provide the researcher with an adequate base for his or her work. I hope this literature review meets their esteemed standards.
Human Capital Theory
Human capital theory as formalized by Becker and Gerhart (1996) is the dominant perspective on on-the-job training. This theory views training as an investment; it raises expected future productivity but at a cost. The key distinguishing feature of a human capital investment as opposed to an investment in capital concerns property rights. A machine can be sold, but in modern society, men cannot. As individuals have the discretion over the deployment of their own human capital, workers and firms will need to agree on an exchange in the labor market. This implies that how the costs and returns to training are shared between workers and firms is a central concern in the on-the-job training literature. Human capital theory has been further developed in the 1970s to explain the life-cycle pattern of earnings. This literature analyses the human capital investment decision of individuals in a competitive environment. One may argue that, in this model, the distinction between education and training is an artificial one. Workers choose the investment as a function of prices (and ability). Through these prices, the demand side enters. There is no strategic interaction between workers and firms. Weiss (1985) surveys this literature.
In the beginning of the 1990s, the new field of economics of information resulted in applications to on-the-job training. Recent developments in the training literature focus on the strategic interaction between employers and employees, and as such stands apart from life-cycle theories of earnings. The focus is on market imperfections and information asymmetries. This review restricts itself to the core of private sector training theory. The reason for this focus is the scattered nature of this literature. The studies in this field differ in many modeling assumptions that complicate comparison. Yet, some common themes can be distinguished.
The first major attempt to apply learning theory to educational technology was Skinner′s development of teaching machines, (Skinner, 1968). His idea was to develop curricula at such a level of detail that a learner could learn without error. The learner, his theory held, never fully recovers from making errors; once made, there remains a possibility that they will recur to disrupt future learning and performance.
Consequently, effective instruction should invoke only correct responses. He was critical of traditional teaching methods because they often engender errors in learning, and because they fail to reinforce behaviour effectively. On his theory, negative reinforcement (e.g. criticism, punishment) was to be avoided. Only positive reinforcement is theoretically sound, and this must be administrated according to specific schedules to ensure effective learning. For instance, as new responses are shaped up, reinforcement should be withdrawn. Mechanical presentation of the curriculum seemed an ideal way for teaching since a perfect schedule of shaping and reinforcement could be built into the teaching programme.
Kirkpatrick 's learning and training evaluation theory
Donald Kirkpatrick 's 1994 book Evaluating Training Programs defined his originally published ideas of 1959, thereby further increasing awareness of them, so that his theory has now become arguably the most widely used and popular model for the evaluation of training and learning. Kirkpatrick 's four-level model is now considered an industry standard across the Human Resource and training communities. The four levels of Kirkpatrick 's evaluation model essentially measure; (1) reaction of student - what they thought and felt about the training and the reaction evaluation is how the delegates felt about the training or learning experience. (2) Learning - the resulting increase in knowledge or capability, to assess whether the learning objectives of the program are met. Learning evaluation is the measurement of the increase in knowledge or intellectual capability from before, to after the learning experience: Whether the trainees learnt what they expected to be taught; (3) behavior - The extent of behavior and capability improvement and implementation or application. Behavior evaluation is the extent to which the trainees applied the learning and changed their behavior, and this can be immediately or several months after the training, depending on the situation (the extent of applied learning back on the job. (4) Results - the effects on the business or environment resulting from the trainee 's performance. Results evaluation is the effect on the business or environment resulting from the improved performance of the trainee. This involves the organizational impact in terms of improved quality of work, increased output etc. It is the acid test. All these measures are recommended for full and meaningful evaluation of learning in organizations, although their application broadly increases in complexity, and usually cost, through the levels from level 1-4.
Effects of Training on Employee Productivity
Research has shown that leadership training for executives and middle managers results in increased worker productivity (Barling, Weber, & Kelloway, 1996). Leadership development training could have the same benefits if given to the rest of the workforce (IIE Solutions, 1999). Leadership development, supervisory skills, and teamwork training often rank as the most important and most frequently offered training topics in corporations. With the amount of money budgeted for training increasing every year and the marketplace becoming more global and competitive, it is imperative that the money spent on training is utilized to the fullest extent possible (IIE Solutions, 1999).
According to Kapp (1999), manufacturing firms implementing training programs can expect an average gain of 17% in manufacturing productivity. Companies must understand that training is portable; that is, the knowledge imparted to employees will leave with the employee, thus benefiting another company. This also allows new employees to bring with them the knowledge gained from previous training programs. It is from this viewpoint that a company must manage its training program to identify the skill sets needed to increase problem solving for the present needs of the business (Miller, 1997). If gains in manufacturing productivity are achieved through the delivery of leadership training to traditional leadership groups, can similar gains be achieved in the banking industry by providing the same training to employees?
Training and Employee performance
People needing training can be classified in different ways. There is a distinction between novice users and expert users. They can also be classified through their educational backgrounds, or through their current employment position. Whatever way trainees are classified, they all have different needs. It is important, when choosing a training method, to identify who is to be trained. Novice users may be computer-shy or technology-intimidated and may need personal attention. Experts may need little attention and may be bored with basic information, and therefore dampening the desire to learn. According to Campbell (2000), educational background information is important. He also says that for people with little education, structure in learning is important. Employee position is important as well. Senior management may not have the time to attend group training or may have frequent distractions. The issue of self-esteem may also be a factor. Someone high in the ranks may not want to appear stupid to his counterparts by asking a question in group training. The explanation contributed by the knowledge management approach would be that training provides employees with the knowledge, abilities and skills required by the position. In fact, Hitt, Ireland, Camp and Sexton (2001) found that training investment first generates a negative effect on results (deriving from the cost of the same), which later become positive, as far as the transfer of knowledge to the post is concerned. This effect can also be explained by taking into consideration that if employees perceive that the organisation is interested in training them and giving them confidence and intends to count on them in the long-term future, they will make more effort and be more effective in their work.
Training would be an important element in generating human capital. This argument is defended by Tzafrir (2005), who considers that investment in training can make employees feel indebted to the company. From a universal viewpoint some authors have argued that it is precisely in training that a greater universal effect than in other human resource practices can be seen. This is how it was noted by Lee et al. (2005) who highlight the fact that, of the 16 best practices studied by Pfeffer (1994), training is one of the few practices where a consistent, positive impact on performance is found.
The study carried out by Koch and McGrath (1996) does not directly analyze the relationship of training with performance; instead, it uses a personnel development index that showed a slightly significant effect on work productivity, measured by net sales per employee. However, this development index only gathers information through the measurement of the number of categories of jobs that receive formal training, which, to me, seems to be a very limited indicator of the training imparted by the company.
In Huselid (1995) and Huselid, Jackson and Schuler (1997) investigation, something similar happens. The combination of human resource practices is used rather than the training variable. In the first study, Huselid (1995) uses two factors to group the practices requiring a high level of commitment, the first of which designates employee and organized structure capabilities, including a wide range of practices aimed at developing the knowledge, abilities and capabilities of employees. However, we are given to understand that it incorporates very heterogeneous practices where training has a relative weighting, since only one of the eight factor items makes reference to training (the average number of training hours received by the employee in the last year).
A greater effort in training measurement can be found in the work of Delaney and Huselid (1996), who use a training index constructed from three items. The first records whether the company supplied some sort of training besides job position training, the second how many workers participated in these programmes and the third a subjective evaluation of training effectiveness. Its results suggest that high performance practices in human resource management that include contracting on a selective basis, with training and incentives, are positively related with measurements of perception of the organization’s role.
Training and Employee Commitment
Training practices used by organizations may have an effect, direct or indirect on both employee motivation and organizational commitment (Meyer and Smith, 2000). Organizational commitment is defined, in the words of Aragon et al (2003) as the relative strength of an individual 's identification and involvement in a particular organization. In order to equip their employees with the skills necessary to do their job, companies train them, in an effort to optimize their workforce 's potential. Some companies, planning for the long-term, invest in the development of new skills by their employees, so as to enable them to handle issues not currently present, but likely to come up in the future. This kind of training can lead to high levels of motivation and commitment by the employees, who actually see the opportunity they are given. These employees ' appreciation for the investment their organization is making in them is shown in their hard work and their contentment in being a member of that organization. Training, then, is expected to have a positive effect on both motivation and employee commitment
Training Methods and Employee Productivity
It is readily acknowledged that individuals tend to learn differently based on preferred styles of teaching (Chambers, 2005). Since these teaching styles impact the way individuals learn, training sessions could be augmented by designing the content to tap into each of the three different styles, thus appealing to a broad scope of disparate learning styles. For example, visual learners tend to process and recall information best when it is presented in a way that they can easily see the information. This can be achieved through the use of hand-outs, PowerPoint slides including pertinent information, and also other forms of multimedia such as videos or computer-based simulations. Auditory learners, by comparison, process information from more of a listening perspective. Consequently, training can be augmented to focus on this preferred style by frequent descriptions of the pertinent information. This can easily be accomplished by verbalizing the content in handouts and PowerPoint presentations. Further augmentation can be achieved by allowing trainees to discuss important content in small group settings.
The third learning style, kinesthetic, includes individuals who learn best by physically doing something. Augmenting training to tap into this learning style requires the trainer to design exercises and activities that allow the learner to be physically engaged in learning. For example, a training session on team work may include an exercise where groups, working as a team, actually work jointly to accomplish some small task. One such exercise requires groups to identify some symbol they frequently associate with the idea of teams and then to work within their groups to construct their symbol using modeling clay. This provides both visual and tactile reinforcement associated with the concepts covered in the training. Following this exercise, further discussion can reiterate important aspects of teamwork that were discussed in the training session, further reinforcing the material (Huselid, 1995).
On-The-Job Training Methods
The purpose of the on-the-job training session is to provide employee with task-specific knowledge and skills in work area. The knowledge and skills presented during on-the-job are directly related to job requirements. Job instruction technique, job rotation, coaching and apprenticeship training are the common forms of on-the job training methods. Employees’ professional quality is the key of bank services, the rules and principles of work are taught in this kind of training, besides, courtesy, manners and techniques of handling interpersonal relations are taught as well. This kind of training aims to train employees to learn the best way to do the work in the most quickly and effective way (Walker, 2007).
Job Instruction Training
This is a structured approach to training, which requires trainees to proceed through a series of steps in sequential pattern. The technique uses behavioral strategy with a focus on skill development, but there are usually some factual and procedural knowledge objectives as well. This type of training is good for task oriented duties such as operating equipment. The instructor or supervisor prepares a job breakdown on the job, while watching an experienced worker perform each step of the job. Job instruction technique consists of four steps, preparation, present, try out and follow up (Blandchard & Thacker, 1999).
This is the systematic movement of employees from job to job or project to project within an organization, as a way to achieve various different human resources objectives such as: simply staffing jobs, orienting new employees, preventing job boredom or burnout, rewarding employees, enhancing career development, exposing employees to diverse environments (Woods, 1995). Excellent job rotation program can decrease the training costs while increases the impact of training, because job rotation is a hand on experience. Job rotation makes individuals more self-motivated, flexible, adaptable, innovative, eager to learn and able to communicate effectively. One of the possible problems with the rotation programs is the cost, because job rotation increases the amount of management time to spend on lower level employees. It may increase the workload and decrease the productivity for the rotating employee’s manager and for other employees. Job rotation may be especially valuable for organizations that require firm-specific skills because it provides an incentive to organizations to promote from within (Jerris, 1999).
Coaching This is the process of one-on-one guidance and instruction to improve knowledge, skills and work performance. Coaching is becoming a very popular means of development, and often includes working one-on-one with the learner to conduct a needs assessment, set major goals to accomplish, develop an action plan, and support the learner to accomplish the plan. The learner drives these activities and the coach provides continuing feedback and support (DOE Handbook1074, 1995). Usually coaching is directed at employees with performance deficiencies, but also used as a motivational tool for those performing well. Coaching methods solve precise problems such as communication, time management and social skills. Executive coaching generally takes place on a monthly basis and continues over a period of several years. Often, coaches are brought in where there is a change in the structure of the company, when a team or individual is not performing well or where new skills are required. Coaching assumes that you are fine but could be even better (Kirwan, 2000).
This is one of the oldest forms of training which is designed to provide planned, practical instruction over a significant time span. Apprenticeship was the major approach to learning a craft. The apprentice worked with a recognized master craft person (McNamara, 2000).
Training and Employee Effectiveness
Analysis from the beginning is definitely needed for training to be effective. The effectiveness of training is usually measured through user performance (Yi & Davis, 2001). They introduces the idea of training validity which assess the performance of trainees in relation to the criteria set by the training. Training must always be evaluated with respect to both its immediate and long term impacts (Patton & Marlow, 2002). It starts from the training experience to the training outcome. The training experience includes the actual training and the immediate effects of the training based on performance. Training outcomes are the long term effects of the training (Carroll and Rosson).
Researchers who have analyzed the impact of type of firm and firm size on employee training examined the training budget as the dependent variable Hitt et al (2001). A variety of training programs (in particular, informal training programs such as on-the-job training, job rotation, and apprenticeships) not usually included in the training budget were not considered, as though skills and knowledge acquired through these training programs are not relevant. Sirmon and Hitt (2003) drew attention to the importance of informal training to skill and knowledge acquisition in small firms. In spite of the fact that in the real entrepreneurial world only a small number of companies measure the impact of training on the results (Koch & McGrath, 1996) several authors suggest that training is an instrument that makes the generation and accumulation of human capital possible.
Training ensures that greater efficiency is achieved through the production of goods and services with a realistic profit margin in so doing the organization is assured of its survival in the market and in the sector as a whole (Huselid, 1995). Given evidence that the support from peers in a training venue can impact the overall effectiveness of the learning (Armstrong, 1998). It might be beneficial to augment training by providing contact information on other training participants, encouraging trainees to communicate and interact following the training session. This could be done on strictly a voluntary basis where trainees could be asked to provide contact information to be listed on a roster of participants, thus minimizing potentially offending those wishing to keep their contact information private. This information could be obtained prior to the training session and then the roster could be distributed during the session. In addition to obtaining contact information, trainers could also ask participants to voluntarily provide information related to key knowledge and skills that may further enhance the likelihood that trainees would contact others for the purpose of networking or benchmarking.
The perceived importance of training to improvements in productivity, sustained competitive advantage, and ultimately to firm performance has led governments in various countries to invest considerable resources into programs that encourage management and employee training in enterprises (Patton and Marlow, 2002). It is believed that training is a powerful agent to development of capabilities and to growth and profitability of the firm (Armstrong, 1998). Koch and McGrath (1996) argued that firms that invest in employee training engage in formal performance appraisal, and link these to incentive compensation are likely to have lower employee turnover, higher productivity, and enhanced financial performance. Cosh, Duncan and Hughes (1997) suggested that training would enhance the survival rate of small firms. Similarly, Delaney and Huselid (1996) noted that the most successful firms provide employees more training than average. Ford and Wroten (1984) established a link between employee training and superior firm performance. In addition, small business failure has been linked to poor management skills. It is argued that management training should greatly improve firm survival and performance (Ford & Wroten, 1984). Macrae (1991) established that major distinguishing factors between high-growth and low-growth small firms are the education, training, and experience of their senior managers.
The existing literature tends to focus on management training (Heneman, Tansky & Camp, 2000) to the exclusion of other forms of employee training. Few researchers have investigated the determinants of training in organizations and in all cases the dependent variable-training--was measured by a single variable, the training budget. Because informal training is often not accounted for in the firm 's books, the literature tends to be biased toward formal training. Employee training and development is an important programme that promotes employees in an organizational set up. The need for manpower development programmes cannot be overemphasized, as the application of acquired skills will go along way to ensure effective productivity in a world of work. Many employees have failed in organizations because of lack of basic training which was not identified and provided for as an indispensable part of management function (Nwachukwu, 1988). As such, for an organization to realize the full potential of its employees, adequate employee training is necessary to ensure that the organization realizes its objectives.
Olaniyan and Ojo (2008) note that training physically, socially, intellectually and mentally are very essential in facilitating not only the level of productivity but also the development of personnel in any organization. The authors define training as a systematic development of knowledge, skills and attitudes required by employees to perform adequately on a given task or job. New entrants into organizations have various skills, though not all are relevant to organizational needs. Training and development are required for staff to enable them work towards taking the organization to its expected destination.
Training Quality and Performance
Employee performance is an important building block of an organization and factors which lay the foundation for high performance must be analyzed by the organizations. Since every organization cannot progress by one or two individual’s effort, it is collective effort of all the members of the organization. Performance is a major multidimensional construct aimed to achieve results and has a strong link to strategic goals of an organization (Mwita, 2000). Managers at all the levels have to input their efforts and make maximum use of their abilities which sometimes are produced under supervision or without it. However, there are many expectations from managers working for an organization. These expectations are sometimes fulfilled but in some situations these managers may be running to their boss for guidance. Therefore, the managers must be developed so that they can think and work on their own and fulfill their responsibilities innovatively, while understanding and foreseeing the market and business situations. Consequently question arises that how an employee can work more efficiently and effectively to increase the productivity and growth of an organization.
William Edward Deming, one of the quality Gurus defines quality as a predictable degree of uniformity and dependability at low costs and suitable to the market, he advises that an organisation should focus on the improvement of the process as the system rather than the work is the cause of production variation (Heyes, 2000)
Many service organisations have embraced this approach of quality assurance by checking on the systems and processes used to deliver the end product to the consumer. Essentially this checks on; pre-sale activities which encompass the advice and guidance given to a prospective client, customer communications ( how well the customers are informed of the products and services, whether there are any consultancy services provided to help the customers assess their needs and any help line available for ease of access to information on products), the speed of handling a client’s transactions and processing of claims, the speed of handling customers calls and the number of calls abandoned or not answered, on the selling point of Products/Services a customer would be interested to know about the opening hours of the organization, the convenience of the location and such issues (Lee, Lee & Pennings, 2005). This is only possible when employees are well trained and developed to ensure sustainability of the same.
Heyes (2000) stated that an organization should commit its resources to a training activity only if, in the best judgment of managers, the training can be expected to achieve some results other than modifying employee behaviour. It must support some organizational and goals, such as more efficient producer or distribution of goods and services, product operating costs, improved quality or more efficient personal relations is the modification of employees behaviour affected through training should be aimed at supporting organization objectives.
According to Armstrong and Baron (2005) all organizations are concerned with what should be done to achieve sustainable high levels of performance through people. This means giving close attention on how individual can best be motivated through such means as incentives, rewards, leadership and training. The aim is to develop motivation processes and work environment that will help to ensure that individuals deliver results in accordance with the expectation of management. For current employees whose job performance is not satisfactory. It may be that some type of additional training can help to bring them up to pair. Such training needs may be experienced with employees or with group of employees or individual who need additional training it is necessary to determine what they need. According to Heyes (2000), Training can only add value results if there is an opportunity for added value. Either the business is not performing effectively because people are not performing, or there is a market opportunity, which can be exploited but requires some new training or development.
Training ensures that greater efficiency is achieved through the production of goods and services with a realistic profit margin in so doing the organization is assured of its survival in the market and in the sector as a whole (Tzafrir, 2005).
The quality of employees and their development through training are major factors in determining long-term profitability and optimum performance of organizations. To hire and keep quality employees, it is good policy to invest in the development of their skills, knowledge and abilities so that individual and ultimately organizational productivity can increase. Traditionally, training is given to new employees only. This is a mistake as ongoing training for existing employees helps them adjust rapidly to changing job requirements. Organizations that are committed to quality invest in training of its employees (Evans & Lindsay 1999). According to Evans and Lindsay (1999), Xerox Business Products and Systems invest over $125 million in quality training. Motorola & Texas Instruments provide at least 40 hours of training to every employee quarterly. A complete employee training program includes a formal new hire training program with an overview of the job expectations and performance skills needed to perform the job functions (Odekunle, 2001). A new hire training program provides a fundamental understanding of the position and how the position fits within the organizational structure. The more background knowledge the new associate has about how one workgroup interrelates with ancillary departments, the more the new associate will understand his or her impact on the organization.
Models for Measuring the Effectiveness of Training
Measuring the training effectiveness should be an important asset for the organizations. There are some criteria for measuring the success of training; direct cost, indirect cost, efficiency, performance to schedule, reactions, learning, behavior change, performance change (Sheppard, 1999).
The Kirkpatrick’s Four Level Approach
It was created by Donald Kirkpatrick in 1959, at the time; he was a professor of marketing at the University of Wisconsin. It is still one of the most widely used approaches. His four level of evaluation are: reaction – a measure of satisfaction, learning – a measure of learning, behavior – a measure of behavior change and results- a measure of results (Phillips, 1997:39). Kirkpatrick model is now nearly 45 years old. Its elegant simplicity has caused it to be the most widely used methods of evaluation training programs. ASTD’s (American Society for Training Development) survey, which reports feedback from almost 300 Human Resource executives and managers, revealed that 67% of organizations that conduct evaluations use the Kirkpatrick model (Stone and Watson, 1999).
Table 2.1: Kirkpatrick Four Levels of Evaluation
|Level 1: Reaction |Were the participants pleased? |
| |What do they plan to do with what they learned? |
|Level 2: Learning |What skills, knowledge, or attitudes have change? By |
| |how much? |
|Level 3: Behavior |Did the participants change their behavior based on |
| |what was learned in the program? |
|Level 4: Results |Did the change in behavior positively affect the |
| |organization? |
Resource: Stone J. and Watson V., (1999), Evaluation of Trainig, www.ispi-atlanta.org
Kaufman’s Five Level of Evaluation
Some researchers, recognizing some shortcomings of Kirkpatrick’s four level approach, have attempted to modify and add to this basic framework. Kaufman offers one such presentation. Kaufman has expanded the definition of Level 1 and added a fifth level addressing societal issues (Philips, 1997:40). At level 1, the factor of the concept enabling addresses the availability of various resource inputs necessary for a successful intervention. At Level 5 is the evaluation of societal and client responsiveness, and consequences in payoff. This moves evaluation beyond the organization, and examines the extent to which the performance improvement program has enhanced society and environment surrounding the organization.
Table 2.2: Kaufman’ Five Level of Evaluation
|Level |Evaluation |Focus |
|5 |Societal Outcomes |Societal and client responsiveness, consequences and payoffs.|
|4 |Organizational Output |Organizational contributions and payoffs. |
|3 |Application |Individual and small group (product) utilization within the |
| | |organization |
|2 |Acquisition |Individual and small group mastery and competency |
|1b |Reaction |Methods’, means’ and processes’ acceptability and efficiency |
|1a |Enabling |Availability and quality of human, financial, and physical |
| | |resources input |
Resource: Phillips, J. Handbook of Training Evaluation and Measurement Methods, 1997, Houston Gulf, p.41
Strategic Approach to Training and Development
Strategy which is a fundamental management tool in any organization is a multi dimensional concept that various authors have defined in different ways. It is the match between an organization’s resources and skills and the environmental opportunities as well as the risks it faces and the purposes it wishes to accomplish (Thompson, 1993). Strategy is the heart of strategic management for it helps an organization to plan, formulate and implement various tasks in its attempts to prosper. Strategy can help the firm establish long term direction in its development and behavior (Gary & Prahalad, 1993). It is meant to provide guidance and direction for the activities of the organization.
Since strategic decisions influence the way organizations respond to their environment, it is very important for a firm to make strategic decisions and define strategy in terms of its function to the environment. The purpose of strategy is to provide directional cues to the organization that permit it to achieve its objectives while responding to the opportunities and threats in the environment (Pearce and Robinson, 2007). Equally important, a strategy serves as a vehicle for achieving consistent decision making across different departments and individuals. Hamel and Prahalad (1989) views organizations as composed of many individuals all of whom are engaged in making decisions that must be coordinated.
For strategy to provide such coordination requires that the strategy process acts as a communication mechanism within the firm. Such a role is increasingly recognized in the strategic implementation processes of large companies (Buzzell & Gale, 1989). A fundamental concern is what the firm (or the individual or the organization more generally) wants to be in the future. Such a view is often made explicit in a statement of company vision. The purpose of such goal setting is not just to establish a direction to guide the formulation of strategy, but also to set aspirations for the company that can create the motivation for outstanding performance. Hamel and Prahalad (1989) argue that a critical ingredient in the strategies of outstandingly successful companies is what they term “strategic intent”—an obsession with achieving leadership within the field of endeavor. Strategic implementation therefore is a management tool used to turn organizational dreams into reality.
The new trends and current business challenges have created the need for strategic approaches to training. HRD Department must have the ability to formalize training and development plan, its alignment with the business strategy, and its implementation and evaluation to enhance organizational performance. Training and development does not take place in a void but within specific contexts as perceived by scholars. Many studies demonstrate the importance of understanding the human behaviors (Hofstede 2001). There are human resource practices which are considered important in one scenario but the same may be considered less important in the other (Ferris, Hochwarter, Buckley, Harrell-Cook and Fink 1999). At the organizational level, culture, values and work force diversity are major features which affect the relationships between training and development and organizational performance. Similarly, ownership, size, technology and organizational structure are few other features which influence HRD activities and organizational performance (Delery & Doty, 1996).
Today, the relationship between the organization and the employee has changed. A greater importance is attached to the value of individuals and the team contributions, to find effective business solutions which play key role towards successful organizational performance. The employee is viewed as a ‘learning customer’, bringing personal preferences and motivation to the workplace, and thereby displaying innovation in his managerial skills. There are positive relationships between training and development strategies and organizational performances; and job satisfaction, competitive advantage and measured performances are the important levers to attain employee’s good performance. Performance orientation was included as an important association in training, in a number of studies (Javidan, 2004). In case of learning organizations, training has been linked to both corporate strategy and organizational performance: training must be aligned to organizational strategy in order to result in high performance (Delery & Doty 1996). The strategic formalization of training facilitates organizations to analyze and carry out effective internal and external scanning of their work environments (Lyles, Baird, Orris & Kuratko 1993): clearly defined vision/mission statements and organizational strategies are part of the strategic planning process which contributes towards the development of specific functional strategies needed to achieve business objectives. Strategy formulation is important in the development of HR strategies needed to attract and retain the human capital required for gaining competitive advantage (Poole & Jenkins 1996).
Catalanello and Redding (1989) recommend that companies incorporate training into its strategic business plans “thereby establishing a competitive advantage rooted in employee competence” (p. 51). In their study, Catalanello and Redding (1989) found that companies who used training to execute strategic plans also provided training in strategic planning and thinking skills, as well as the ability to formulate business plans. This suggests that by including training into a company’s strategic plan, employees will be better equipped to understand the company culture and able to convey this through their everyday tasks.
Types of Staff Training
Sort by Training Objects
Training is differed by disparate groups, one is the top management group, the second group is supervisory management, and the third group is front line employees who participate in operations and providing services.
As for the top management group, including general manager, directors, managers and assistant managers of every department, they take care of making decisions. The training should be about building proper economic views, marketing, forming sales strategy, budgeting and cost controlling etc. Supervisory management group is the supportive team in the organization, such as supervisors, team leaders etc. they should be trained about management concept and ability, professional knowledge, customer services and how to deal with guests requests and complaints etc. practical information. Front line staff helps bank actual operation; training for them should be focused on professional knowledge, technical competencies and working attitudes to improve their abilities (Dessler, 2006).
Sort by Training Location
According to the location that trainings take place, trainings are separated into in-house training, on-the-job training and outside training. In-house training is organized by the Human Resource department, using hotel facilities such as the training room, staff canteen. On-the-job training is usually held by each department; supervisors, team leaders and trainers are responsible for this kind of training, experienced worker or trainer trains the employee (Dessler, 2006). Outside training refers to training which is held outside the bank environment. Trainees attend seminars and conferences; participate in training program organized outside the bank, or go abroad for training.
Sort by Training Contents
Trainings are held for different purposes, some are organized to help new employees to get to know the bank, some are for improving employees‟ professional skills, therefore, the trainings can be divided by their contents:
There exist a small number of empirical papers that relate firm productivity to measure of training. Although a positive correlation is generally found, it is very difficult to interpret because the training measures are only measured at a single point of time and could be picking up many unobservable firm-specific factors correlated with both training and productivity. Black and Lynch (2001) used an establishment training survey at two points of time. In the cross section, they identified some effects of the type of training on productivity, but they found no significant association when they controlled for plant-specific effects. Ichniowski et al. (1997) investigated what factors influence productivity in a panel of US steel finishing mills. After controlling for fixed effects, they found a role for training only in combination with a large variety of complementary human resource practices. Carriou and Jeger (1997) used French firm-level panel data to look at the effects of training on value added and found positive and significant effects.
The purpose of training is mainly to improve knowledge and skills, and to change attitudes or behavior. It is one of the most important potential motivators which can lead to many possible benefits for both individuals and the organization. Changing technology requires that employees possess the knowledge, skills and abilities needed to cope with new processes and production techniques. According to Cole (2002) training can achieve: High morale - employees who receive training have increased confidence and motivation; Lower cost of production – training eliminates risks because trained personnel are able to make better and economic use of material and equipment thereby reducing and avoiding waste; Lower turnover – training brings a sense of security at the workplace which reduces labor turnover and absenteeism is avoided; Change management- training helps to manage change by increasing the understanding and involvement of employees in the change process and also provides the skills and abilities needed to adjust to new situations; Provide recognition, enhanced responsibility and the possibility of increased pay and promotion; Give a feeling of personal satisfaction and achievement, and broaden opportunities for career progression; and help to improve the availability and quality of staff. Derrick et al. (2000) looked at the training environment and the structure of organizations, and emphasized on the effects of internal political and cultural factors on training. Sherman et al. (1996) argues that many new employees can be equipped with most of the knowledge, skills and attitudes needed to start work, but others may require extensive training to ensure their effective contribution to the organization. A majority however, will require some type of training at one time or another to maintain an effective level of job performance.
According to Krietner (1995) no matter how carefully job applicants are screened, typically a gap remains between what the employee does know and what they should know. An organization which desires to gain the competitive edge in its respective industry, needs among other things, extensive and effective training of its human resources. Training is therefore a key element for improved organizational performance; it increases the level of individual and 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. Although many employers continue to have reservations about the cost and extent of tangible business returns from training, the development of skills has been identified as a key factor in sharpening competitiveness. According to Casio (1989), the economic and technological trends, the pace of innovation, change and development are growing faster year-by-year and as a result, provide clear signals that training is so relevant that both organizations and individual stakeholders must give a serious attention to.
[pic]Source: Author, 2012
The independent variables in this study will include the training modes adopted by KCB on employee productivity. These shall include e-learning where employees access training materials online. The employees read these training materials after which they are evaluated and awarded a score and a certificate. Classroom training is another training mode employed by the bank in its staff development programs. These takes place at its training centre located in Karen. In addition, employees are trained on the job through apprenticeship where employees learn from their senior colleagues. In addition to these methods is the seminar and workshops where employees attend from time to time to learn on new trends in the banking industry.
The intervening variables in this study include the quality of training which will be measured by the training environment, facilitator’s grasp of the content, and the preparations allowed for training. Another intervening variable will be employee committement. Committed employees will gain more from the training and thus improve their performance than less committed employees. Employee motivation also affected employee productivity as a result of employee training. Well motivated employees will concentrate more on the training and apply the information gained as compared to less committed employees. Another factor affecting the effect of employee training and productivity is employee efficacy. More efficient employees will be more productive than less efficient employees.
The aim behind training employees is “achieving cost effective high performance” and good performance brings quality i.e. higher quality implies lower costs and increased productivity, which in turn provides KCB with a greater market share and enhanced competitiveness levels (Deming, 1982). This idea supports the conclusion reached in a number of empirical studies dedicated to manufacturing and service organizations (Kaynak, 2003). Thus, Training is essential to KCB which seeks to gain a competitive advantage through a highly skilled and flexible workforce, and is seen as a major element to high productivity. A skilled workforce can increase productivity by producing a higher level of work with greater value. A skilled workforce can improve KCB’s operative flexibility as they will be easier to retrain due to their broad knowledge base of multi-skills (Steedman & Wagner, 1989).
Research methodology involves describing the procedures that will be applied in conducting the study (Mugenda and Mugenda, 2003). According to Mugenda and Mugenda (2003), research methodology includes research design, population and sample, data collection procedures, data analysis procedures and measurement variables. Kothari (2004) defines research methodology, as the way of systematically resolving a research problem. This chapter sets to review the research methods that will be used to establish the impact of training on staff productivity in Kenyan banks. The chapter will provide a description of the research methodology, the sampling procedure, how the subjects will be obtained and the rationale for their selection, the tools that will be used together with the procedure that will be adopted in data collection and finally the analysis of the data.
A research design is a master plan specifying the methods and procedures for collecting and analyzing the needed information (Zikmund, 2003). A research design is an arrangement of conditions for collection and analysis of data in a way that combines their relationship with the purpose of research to the economy of procedures (Chandran, 2004). Similarly, Babbie (1998) sees research design as the plan or design of a strategy for conducting and finding out something by specifying what the researcher wants to find out and to determine the best way to do it. It specifies a framework or blueprint for the research. The research design employed in this study will be descriptive and will be aimed at delivering answers to the research questions outlined in the problem statement. Descriptive studies describe characteristics associated with the subject population. According to Cooper and Schindler (2001) descriptive statistics discover and measure cause and effect relationships among variables. This study uses a descriptive design because it will enable the collection of in depth information about the population being studied. It will give proper and succinct recommendations to bank managers.
According to Cooper and Schindler (2001), a population is the total collection of elements about which we wish to make inferences. Population refers to the entire group of people, events or things of interest that the researcher wishes to investigate (Sekaran, 2003). According to Mugenda and Mugenda (2003) population refers to the entire group of individuals, events or objects having a common observable characteristic. The population of this study will be all permanent and pensionable employees of Kenya Commercial bank Limited. As per Company record, there were a total of 4,560 employees on the Bank’s payroll as at December 31, 2011.
Target and Accessible Population
Mugenda and Mugenda (2003), defines target population as that population the researcher studies, and whose findings are used to generalize to the entire population. The target population for this research study will consist of 250 employees who include; top management, middle management, lower management and non managerial staff working in the head quarter office and selected branches KCB. The researchers’ choice to study the top management, middle management and low level management staff will be informed by the fact that every level undergoes training.
Denscombe (1998) poised that, the sample must be carefully selected to be representative of the population and the researcher also needs to ensure that the subdivisions entailed in the analysis are accurately catered for. In the case of the current study KCB staff will constitute the sampling unit. Thereafter the sample will be selected from the various divisions of KCB. KCB has one hundred and seventy branches across the country. The larger the sample size, the lower likely that an error in generalization of the population will occur. Saunders, Thornhill and Lewis (2007) argued that the choice of sample size will be governed by the confidence you need to have in your data, level of certainty, the accuracy you require for any estimates made in your sample, the type of analysis you are going to undertake and finally the size of total population from which your sample is drawn.
The population of interest in this study comprises fifteen branches and Head Office of KCB purposely chosen to represent their respective regions based on the volume of business in the region as well as the social, cultural and economic wellbeing of the regions. According to the numbers available at KCB as at December 2011 payroll records, there were 175 Branches in Kenya. All branches have access to E-learning courses as well as training courses at the Karen Leadership Centre in Nairobi. It is also cheaper to carry out the research from a sample rather than from the entire staff base due to the logistical aspects of such a large population.
Sampling techniques is the method a researcher applies to determine the members or items of the target population to be included in the study. Sampling is that part of statistical practice concerned with the selection of an unbiased or random subset of individual observations within a population of individuals intended to yield some knowledge about the population of concern especially for the purposes of making predictions based on statistical inference. Sampling is an important aspect of data collection (Adèr, Mellenbergh & Hand, 2008).
In his definition of sampling, Kothari (2004) viewed a sample method as a way of selecting a portion of population such that the selected portion represents the population adequately. According to the law of statistical regularity, any groups of objects taken from a large group of objects possess the same characteristics as the large group. The second law holds that, the larger groups are more stable than the smaller groups owing to the compensating effect of deviations in opposite directions. Sampling is done in order to minimize costs, increase the speed of data collection, improve on accuracy of results and enhance the availability of population elements (Cooper & Schindler, 2006).
According to Mugenda and Mugenda (2003), there is the probability and non-probability sampling techniques. Probability sampling techniques are those where the principle of equal opportunity for all members of the selected population is the norm ensuring equal opportunity and reducing bias. Probability sampling is based on the concept of random selection procedure that assures that each population element is given a known non zero chance of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling.
Non-probability sampling is used when the research is not interested in selecting a sample that is representative of the population. This is usually the case where there is no homogeneity in the target population and is mostly used in qualitative samples because the focus is more on gathering in-depth information and not making generalizations (Chandran, 2004). Non-probability sampling also known as biased sampling is conducted using purposive sampling, snowball sampling, convenient sampling and quota sampling (Cooper & Schindler, 2006).
Purposive sampling allows a researcher to use previous studies to acquire information based on the study he/she wants to undertake. Snow ball sampling on the other hand is where initial subjects with a desired characteristic are identified using purposive sampling then they in turn name others they know have similar required characteristics until a researcher is satisfied (Cooper & Schindler, 2003). Convenience sampling also known as accidental sampling is whereby cases or units of observation are selected based on their availability to the researcher. In quota sampling the objective is to include various groups or quotas of a given population based on some certain criteria (Mugenda & Mugenda, 2003).
Random sampling is where every member of the population has an equal chance of being selected. Simple random sample ensures that the probability of selection remains constant in successive selections. In other words, the chance of selecting an individual or item remains the same from one section to the next. Systematic sampling sometimes called interval sampling or Nth selection technique is used where there is a gap or interval between each selection. After the required sample size has been calculated, every Nth record is selected from a list of population members (Cooper & Schindler, 2006). This technique could also be used when questioning people in a sample survey (Australian Bureau of Statistics, 2008). In stratified sampling, the population is divided into groups of strata. A sample is then drawn from these strata. The researcher first identifies the relevant stratums and their actual representation in the population. Random sampling is then used to select a sufficient number of subjects from each stratum (Cooper & Schindler, 2006).
When selecting a case for a case study, researchers often use information-oriented sampling, as opposed to random sampling this is because average cases are often not the richest in information. Extreme or typical cases reveal more information because they activate more basic mechanisms and more actors in the situation studied. In addition, from both an understanding-oriented and an action-oriented perspective, it is often more important to clarify the deeper causes behind a given problem and its consequences than to describe the symptoms of the problem and how frequently they occur (Yin, 2009).
Extreme or typical cases reveal more information because they activate more basic mechanisms and more actors in the situation studied. In addition, from both an understanding-oriented and an action-oriented perspective, it is often more important to clarify the deeper causes behind a given problem and its consequences than to describe the symptoms of the problem and how frequently they occur (Baxter & Jack, 2008). Census is the method where every member of the population is included in the enumeration. According to Chandran (2004), census is a count or a survey of a population. A census is used as a method of enumeration only when there is need to have information on every individual or item in the population (Chandran, 2004).
This study will use non-probability sampling because it will focus on in-depth information while avoiding generalizations (Mugenda and Mugenda, 2003). Specifically purposive sampling will be employed. This will involve picking subjects because they are informative or because they possess the required characteristics (Mugenda and Mugenda, 2003). This is because the information required for the research will be possessed by the chosen respondents by virtue that they work for the organization and that they are involved in the training and development offered by the bank and directly affects the Bank’s productivity.
Secondly, purposive sampling is time efficient and is less costly than probability sampling based methods. According to Babbie (2003), purposive sampling is best suitable where one needs to study a small subset of a large population in which many members of the subset are easily identifiable but the enumeration of all is nearly impossible.
A sampling frame is a list of elements from which the sample will be obtained (Cooper and Schindler, 2001). The sampling frame will be obtained from the banks database. All KCB staff in Kenya will be part of the sampling frame. In order to ensure that there is no biasness in collection of the data and ensure representation across the cadre, proportionate stratified probabilistic sampling will be used for the study. The researcher will use stratified sampling because of ease of classifying the population into 16 strata, that is, according to branches. This will enable the researcher to make reliable estimates for each stratum as well as for the population as a whole. The researcher will proportionately select 30% of staff in each stratum as follows:-
Table 3. 1: Sampling Frame
|Branch Name |Population |Sample Ratio |Sample |
|Head Office |30 |30% |9 |
|Kipande House |15 |30% |5 |
|Wajir |12 |30% |4 |
|Village Market |18 |30% |5 |
|Nyeri |19 |30% |6 |
|Ruiru |15 |30% |5 |
|Meru |14 |30% |4 |
|Nakuru |16 |30% |5 |
|Eldoret |16 |30% |5 |
|Kitale |15 |30% |5 |
|Kakamega |14 |30% |4 |
|Webuye |15 |30% |5 |
|Kisii |15 |30% |5 |
|Treasury Square |16 |30% |5 |
|Lamu |12 |30% |4 |
|Kwale |12 |30% |4 |
|Total |250 | |80 |
Source: Author, 2012
The researcher will sample 80 participants from the accessible 250 from both the selected branches and head office. The sample will be composed of 30% of the accessible population. Mugenda and Mugenda (1999) suggest that a good sample is about 10% -30% of the accessible population. A sample should also be optimum one which fulfils the requirements of efficiency, reliability and flexibility in terms of costs (Kothari, 2004).
Type of Data
Cooper and Schindler (2006) defined data as facts or information, behavior, attitude, attributes collected from participants or observation or from secondary source. Cooper and Schindler (2006) categorized data of information into three levels: Primary, secondary and tertiary data. They add that primary data are the original works of direct outcomes of events, records of eyewitnesses or raw data without interpretation or pronouncements that represent an official opinion. Included under these are memos, letters, complete interviews or speeches, laws, regulations, government data, among others. Cooper and Schindler (2006) observed that primary data are always the most authoritative because the information has not been interpreted by a second party.
Secondary data are interpretations of primary data. They include encyclopedia, textbooks, handbooks, magazines, newspapers, articles, among others. Cooper and Schindler (2006) observed that tertiary data may be interpretation of a secondary data but generally are represented by indexes, bibliographies, and other finding aids like internet search engine. Such information forms qualitative or quantitative data which will be used in this study.
Qualitative data is the information that has non-numerical attributes, which are related to experience, personality, values or qualities of a person (Chandran, 2004). Quantitative data on the other hand is the numerical information. Most of the quantitative data will be collected by the researcher (Primary Data) from the field through questionnaires. The secondary data will be assembled from textbooks, journals, Internet and other recommended academic sources. The researcher will use both qualitative and quantitative data in the study for reliability and relevance.
Data to be used in this study can be obtained from primary or secondary data collection method. Primary data is obtained first hand by the researcher while secondary data refers to information gathered from already existing sources.
Primary data will be collected using structured questionnaires and interview guides. The structured questionnaires will be administered to all branch staff while interview guides will be used to collect data mainly from the staff at the Head office.
The structured questionnaires will contain both structured and closed ended questions. The interview guides will contain open-ended questions for collecting qualitative data. On the other hand, secondary data on staff productivity and training will be collected from published reports and books, journals from the library, internet databases and websites.
Data Collection Instruments
According to Mugenda and Mugenda (2003), a researcher needs to develop instruments with which to collect data. The most commonly used instruments are: questionnaires, interview schedules, observational forms and standardized tests (Chandran, 2004). Questionnaires are used to obtain information about the population and are developed to address a specific objective, research question or hypothesis of a study. An interview on the other hand is an oral administration of a questionnaire or an interview schedule. Interview guide is a face-to-face encounter and hence requires the researcher to develop a good rapport with the respondent.
The instrument that will be used for data collection will be questionnaires which will be administered to the sample population. The questions will be structured both as open and close ended. The open-ended questions will enable the respondent to clarify issues further to provide an in-depth finding for this study. The close ended questions will enable the researcher to obtain background information training and its effect of employee productivity. The advantage of this method (questionnaire) is that it is the most feasible and allows the respondents moments of reflection on the subject this is because it is cost effective, free from bias and gives the respondent adequate time to respond to the questions (Kothari, 2004).
According to Kothari (2004), the purpose of pre-testing the data instrument is to ensure that the items in the instrument are stated clearly and have the same meaning to all respondents. It is only during pre-testing that the researcher is able to assess the ease of use of the instrument. Any sensitive, confusing or biased items are identified and modified or omitted. Pretesting permits refinement before the final test (Cooper and Schindler, 2003). This is the researcher’s best opportunity to revise scripts, look for control measures and scan the environment for factors that might confound the results.
Data Collection Procedure
According to Chandran (2004, p. 85), “data collection is the assembly of empirical evidence in order to acquire new insights into a situation and answer all queries that have prompted the undertaking of the research. It involves integrating the research design into instruments of data collection with an aim of gathering data that meets the research objectives”. It may also involve training of data collection personnel. An understanding of the data collection procedure ensures that errors and biases are avoided and ascertains consistency in the way data is collected (Mugenda and Mugenda, 2003).
The respondents will be drawn from different branches and cadres, the service line managers and the operations managers. These respondents are considered to be most aware of the contribution of employee training on employee productivity. The researcher will undertake this by firstly, enrolling the help of a research assistant who will be trained on administration of the research tool. The research assistant’s main responsibility will be to ascertain that the questionnaires are filled on site to ensure commitment from the respondents while collecting the data.
Data analysis is defined as the whole process, which starts immediately after data collection and ends at the point of interpretation and processing of results (Leedy, 2002). Data is a collection of facts and figures relating to a particular activity under study (Mingala, 2002). For data to be useful, it has to provide answers to the research problems. The completed questionnaires will be edited for completeness and consistency. The data will then be coded and checked for coding errors and omissions. Analysis will be done using a computer aided program; the statistical package for social sciences (SPSS). Descriptive statistics and multiple regression analysis will be utilized to describe how training affects staff productivity at the Kenya Commercial Bank. Descriptive statistics will be used to analyze the data by way of percentages, proportions and mean scores for all variables in the questionnaire. The data will then be presented in tables, charts and graphs. A multiple regression analysis will utilize the equation below to explain the change in the dependent variable (employee productivity) when the independent variables (class room training variable, e-learning, On-job-training and seminar/workshops) are varied.
(Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε)
Where; Y is the dependent variable (employee productivity),
X1 is the class room training variable,
X2 is e-learning,
X3 is On-job-training and
X4 is seminar/workshops
β1, β2, β3 and β4 are coefficients of determination and
ε is the error term
The findings of this study will be presented in a report in form of qualitative description of findings, charts, tables and models. These will be used to make inferences based on the specific objectives.
The chapter describes the methodology that is to be used in carrying out the study. The research design is descriptive in nature while the population is the staff of KCB. The sample size, the sampling techniques and questionnaire as a primary data collection instrument have all been described. The questionnaire developed will be pilot tested before a refined one is administered to the respondents. The chapter has also indicated that, data will be analyzed using SPSS and presented in inform of chart and tables. The next chapter will present the findings of the research.
DATA ANALYSIS AND INTERPRETATION
This chapter presents analysis and findings of the study as set out in the research methodology. The study findings are presented on to determine the effect of training on staff productivity at Kenya Commercial Bank. The data was gathered exclusively from the questionnaire as the research instrument. The questionnaire was designed in line with the objectives of the study.
The study targeted 80 respondents in collecting data with regard to the effect of training on staff productivity at Kenya Commercial Bank. 80 questionnaires were distributed to the respondents but the researcher was able to collect data from 64 (80%) of the respondents. The response rate was therefore 80%. This is regarded adequate in line with the literature by Mugenda and Mugenda (2003) which recommends 70% as a good response rate in descriptive studies.
Table: 4.1 Response rate
|Category |Frequency |Percentage |
|Response |64 |80% |
|Non response |16 |20% |
|Total |80 |100% |
Source: Author (2012)
Respondents Demographic Profile
The study sought to find the gender of the respondents in the organization. From the findings, 33 (52%) the respondents indicated that they were female 31 (48%) of the respondents indicated that they were male.
Table: 4.2 Demographic profiles
|Profile |Frequency |Percentage |
|Male |31 |48% |
|Female |33 |52% |
|Total |64 |100% |
Source: Author (2012)
Age of Respondents The study sought to find the age bracket of the respondents in the organization. From the findings, 33 (52%) the respondents indicated that they were 18-30 years, 15 (24%) of the respondents indicated that they were 31-40 years, 13 (20%) of the respondents indicated that they were 41-50 years and 3 (4%) had 51 years and above.
Table: 4.3 Age of respondents
|Age (Years) |Frequency |Percentage |
|18 – 30 |33 |52% |
|31 – 40 |15 |24% |
|41 – 50 |13 |20% |
|Above 51 years |3 |4% |
|Total |64 |100% |
Source: Author (2012)
Educational level The study sought to find the level of education of the respondents in the organization. From the findings, 0 (0%) of the respondents indicated that their level of education was secondary, college diploma and Phd levels. While 45 (70%) of the respondents indicated that they were university graduates, and 19 (30%) of the respondents indicated that they had post graduate qualifications.
Table: 4.4 Educational Levels
|Level |Frequency |Percentage |
|Secondary |0 |0% |
|College Diploma |0 |0% |
|University graduate |45 |70% |
|Post graduate / Masters |19 |30% |
|Phd |0 |0% |
|Total |64 |100% |
Source: Author (2012)
Work experience The study sought to find the period of time the respondents had worked with Kenya Commercial Bank. From the findings 42 (66%) of the respondents indicated that they had been with the present organization for a period of between 11-15 years, 17 (27%) of the respondents indicated that they had been with the present organization for a period of 15 years and above, 3 (5%) of the respondents indicated that they had been with the present organization for a period of 6-10 months and 2 (2%) of the respondents had worked for less than 5 years.
Table: 4.5 Work Experience
|Time (Years) |Frequency |Percentage |
|Less than 5 | | |
|6 – 10 | | |
|11 – 15 |42 |66% |
|Over 15 |17 |27% |
|Total |64 |100% |
Source: Author (2012)
Employee Training Strategies used by KCB
Class room training
Table: 4.6 Extent of agreement of the respondents with class room training as a strategy in employee training.
| |Strongly disagree |Disagree |Neutral |Agree |
The researcher conducted a multiple regression analysis so as to explain the effect of training on staff productivity at Kenya Commercial Bank. As per the SPSS generated table 4.9, the equation (Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε) becomes:
Y= 0. 072X1+ 0. 393X2+ 0. 412 X3 + 0. 324 X4+ 0.599
Where Y is the dependent variable (employee productivity), X1 is the class room training variable, X2 is e-learning, X3 is On-job-training and X4 is seminar/workshops.
According to the regression equation established, taking all factors into account (class room training, e-learning, On-job-training, seminar/workshops) constant at zero, employee productivity will be 0.599. The data findings analyzed also showed that taking all other independent variables at zero, a unit increase in On-job-training will lead to a 0.412 increase in employee productivity; a unit increase in e-learning will lead to a 0.393 increase in employee productivity, a unit increase in Seminar/workshops will lead to a 0.324 increase in employee productivity, a unit increase in class room training will lead to a 0.072 increase in employee productivity. This infers that On-job-training contribute more to employee productivity at Kenya Commercial Bank followed by E-learning.
At 5% level of significance and 95% level of confidence, e-learning had a 0.001 level of significance, class room training showed a 0.002 level of significant, seminar/workshops showed a 0.003 level of significant, on-job-training showed a 0.005 level of significant, hence the most significant factor is on-job-training.
Table 4.14: Analysis of Variance
|b. Dependent Variable: employee productivity |
Table 4.15: Squared Multiple Correlation Coefficient, R2
|Model |R |R Square |Adjusted R Square |Std. Error of the Estimate |
|1 |0.732a |0.535 |0.267 |.76951 |
Coefficient of determination explains the extent to which changes in the dependent variable can be explained by the change in the independent variables or the percentage of variation in the dependent variable (employee productivity) that is explained by all the three independent variables (class room training, e-learning, on-job-training).
R2= (35.474/66.265)= 0.5353 (see figures in Table 4.9). The three independent variables that were studied, explain only 53.5% of the factors affecting employee productivity at Kenya Commercial Bank as represented by the R2. That indicates that 53.5% of the variability in the "employee productivity" variable is explained by the "class room training”, “e-learning” and “on-job-training" variables. This therefore means that other factors not studied in this research contribute 46.5% of the staff productivity at Kenya Commercial Bank. Therefore, further research should be conducted to investigate the other factors (46.5%) that affect staff productivity at Kenya Commercial Bank.
The test for significance of variability in the multiple regression model with regard to the variables; class room training, e-learning, and on-job-training shows a significance value of 0.014 which is less than 0.05 thus the model is statistically significance in predicting how employee training strategies, effectiveness of training methods and the best training strategies affect the staff productivity at KCB.
The F-test statistic ratio is equal to (35.474/0.592=59.92. This implies that the ratio between the mean sum of square and the mean square error is large so there is strong evidence that class room training; e-learning and on-job-training affect employees’ productivity. The distribution is F (30, 52), and the probability of observing a value greater than or equal to 58.92 is less than 0.014. There is strong evidence that β1 is not equal to zero. The p-value at 5% level of significance was 1.32. Since P-value is less than the F critical (value = 1.997), this shows that there is a strong evidence that employees productivity is affected by training strategies applied.
The results shown in this chapter is an indication that KCB has adopted employees training strategies involve class-room training, e-learning programs, and on-the-job training.
The effectiveness of the training methods applied by the KCB is relatively high since the respondents strongly agreed that the content offered in e-learning programs are more detailed; e-learning programs are well organized; on the job training programs help in deeper understanding of the concepts; On-the-job training methods enable the employees to learn about the rules and principles of work, courtesy, manners and techniques of handling interpersonal relations.
The results also show that the current training methods applied at the KCB have been effective at great extent in promoting productivity of the employees
The most effective training strategies in enhancing productivity of the employees were concluded to on-the-job training and e-learning while class-room training showed less significant to the employees.
SUMMARY OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
The chapter provides the summary of the findings from chapter four, and it also gives the conclusions and recommendations of the study based on the objectives of the study. The objectives of this study were to investigate the effect of training on staff productivity at Kenya Commercial Bank (KCB).
Summary of the Findings
The study aimed at investigating the effect of training on staff productivity at Kenya Commercial Bank (KCB). The past literature had showed that different human resource development practices have effects in the employees’ performance in an organization. This sought to investigate how employees’ training affects their productivity in terms of work ouput per time, efficiency, accuracy and also development of skills.
Employee Training Strategies
The research found that the respondents strongly agreed that KCB offers classroom training in its employee development as indicated by a mean of 4.4. The respondents also strongly agreed that the class room trainings are well organized and that classroom trainings help in deeper understanding of the job performance as indicated by a mean of 4.2.
The respondents further strongly agreed that KCB offers e-learning programs in its employee development program and that the content offered in e-learning programs are more detailed as indicated by a mean of 4.6. The respondents strongly agreed that the e-learning programs are well organized as indicated by a mean of 4.3.
On-the-job training methods enable the employees to learn about the rules and principles of work, courtesy, manners and techniques of handling interpersonal relations. This kind of training aims to train employees to learn the best way to do the work in the most quickly and effective way (Walker, 2007). Due to its significance, the study found that KCB offers on the job training programs in its employee development program and this was a strongly agree fact implied by a mean of 3.9. The respondents strongly agreed that on the job training programs help in deeper understanding of the concepts as implied by the mean of 3.7.
Effectiveness of Training Methods
The research further found that the respondents indicated that the effectiveness of class room training and on-job- training affected employee productivity at KCB to a very great extent as indicated by a mean of 4.2. The respondents further indicated that the effectiveness of seminar/workshops affected employee productivity at KCB to a great extent as indicated by a mean of 4.1.
Best training strategies for maximum employee productivity at KCB
In addition, the study found that the respondents strongly agreed that on-job- training is the best training strategy for maximum employee productivity at KCB as indicated by a mean of 4.2. The respondents further agreed that classroom training is one of the best training strategy for maximum employee productivity at KCB as indicated by a mean of 4.1; the respondents also agreed that seminar/workshops is the best training strategy for maximum employee productivity KCB as indicated by a mean of 3.9.
The study concludes that there is great effectiveness of class room training and on-job- training in the employees’ productivity.
On-job- training is the best training strategy for maximum human resource development since it provides employee with task-specific knowledge and skills in the work area
Training is a significant human recourse development strategy which promotes productivity of the employees. Various methods and strategies of training can be applied to fit the needs of each employee. On job training and e-learning are more effective methods of training in enhancing productivity of the employees as compared to class room training and seminar or workshops trainings.
The study recommends that KCB should offer class room training as a strategy in employee training for deeper understanding of the job performance and also apply e-learning programs for deeper understanding of the concepts. In addition, the e-learning programs should be readily available for staff at all times.
The study further recommends that KCB should enhance these employee training strategies especially the e-learning programs for effective employee productivity. This can be enhanced by analyzing all its internal and external resources. The study further recommends on-job-training as the best training strategy for maximum employee productivity, self efficacy, employee motivation and commitment at KCB should be widely offered.
To enhance the performance of the organization, the study recommends that KCB should conduct more seminars and workshops to effectively enhance staff productivity.
Areas of Further Studies
This study focused on the effect of employees’ training in productivity. The study examined such issues as employees’ motivation, commitment, self efficacy and general productivity. Further studies can be done;
i) To evaluate the employees’ training factors that enhance organizational commitment
ii) To determine the employees’ training factors that promote employees’ motivation at work
iii) To evaluate the challenges experienced in employees training in the banking sector
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Appendix A: Research Questionnaire
EFFECT OF TRAINING ON STAFF PRODUCTIVITY AT KENYA COMMERCIAL BANK (KCB)
This questionnaire is purely meant for academic purposes only and will be used for the partial fulfillment of a post graduate degree course and shall be completed by the respondents with the guidance of the enumerator. Please note that all the responses that you give will be treated with utmost confidentiality and used strictly for the purposes of this study.
NB: Do not write your name anywhere on this questionnaire.
Kindly tick your options where applicable.
Your kind co-operation will be highly appreciated.
SECTION 1 – RESPONDENT BIODATA 1. Position: -------------------------------------------------------------------------- Gender: o Male o Female 2. Age: o Primary level o 18-30 yrs o 31-40 yrs o 41-50 yrs o Above 51 yrs 3. Education level o Secondary level o College diploma o University graduate o Post graduate o Professional qualification (Specify)…………………. o Phd 4. Working experience with KCB o Less than 5 years o 6-10 years o 11-15 YEARS o 15 Years and over
SECTION 2 – Employee training Strategies
Class Room Training
Please indicate the extent to which you agree with the following statements? Use the scale where 5= strongly agree, 4= agree, 3= Neutral, 2= Disagree, 1= Strongly Disagree
|Statement |5 |4 |3 |2 |1 |
|KCB offers classsroom training in its employee development program | | | | | |
|The class room trainings are well organized | | | | | |
|Classroom trainings help in deeper understanding of the job performance. | | | | | |
|The content offered in class room training is more detailed | | | | | |
1. To what extent does class room training affect employees’ commitment in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
2. To what extent does classroom training affect employee motivation in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
3. To what extent does classroom training affect employees’ self efficacy in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
4. To what extent does classroom training affect employee productivity at KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
Please indicate the extent to which you agree with the following statements? Use the scale where 5= strongly agree, 4= agree, 3= Neutral, 2= Disagree, 1= Strongly Disagree
|Statement |5 |4 |3 |2 |1 |
|KCB offers e-learning programs in its employee development program | | | | | |
|The e-learning programs are well organized | | | | | |
|E-learning programs help in deeper understanding of the concepts. | | | | | |
|The content offered in e-learning programs are more detailed | | | | | |
|The e-learning programs are readily available for staff at all times | | | | | |
|The e-learning programs contain real work scenarios | | | | | |
5. To what extent does e-learning programs affect employees’ commitment in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
6. To what extent does e-learning programs affect employee motivation in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
7. To what extent does e-learning programs affect employees’ self efficacy in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
8. To what extent does e-learning programs affect employee productivity at KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
On the Job Training
Please indicate the extent to which you agree with the following statements? Use the scale where 5= strongly agree, 4= agree, 3= Neutral, 2= Disagree, 1= Strongly Disagree
|Statement |5 |4 |3 |2 |1 |
|KCB offers on the job training programs in its employee development program | | | | | |
|The on the job training programs are well organized | | | | | |
|On the job training programs help in deeper understanding of the concepts. | | | | | |
|The on the job training is more involving | | | | | |
9. To what extent does on the job training programs affect employees’ commitment in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
10. To what extent does job training programs affect employee motivation in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
11. To what extent does job training programs affect employees’ self efficacy in KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
12. To what extent does job training programs affect employee productivity at KCB ? A very great extent ( ) Great extent ( ) Moderate extent ( ) Little extent ( ) No extent at all ( )
SECTION 3 – Effectiveness of training methods
13. Please indicate how you could rate the effectiveness of the training methods? Use the scale where 5= Very effective, 4= Effective, 3= Average, 2= Not effective ,1= poor
|Training methods |5 |4 |3 |2 |1 |
|Class room training | | | | | |
|E-learning | | | | | |
|On-job-training. | | | | | |
|Seminar/workshops | | | | | |
14. Please indicate the extent to which you agree with the following statements? Use the scale where 5= strongly agree, 4= agree, 3= Neutral, 2= Disagree, 1= Strongly Disagree
|Statement |5 |4 |3 |2 |1 |
|Effectiveness of training methods affects training quality | | | | | |
|Effectiveness of training methods affects employee commitment | | | | | |
|Effectiveness of training methods affects employee motivation | | | | | |
|Effectiveness of training methods affects employees’ self efficacy | | | | | |
SECTION 4 – Effectiveness of training methods on employee productivity at KCB
15. To what extent does the effectiveness of the following training methods affect employees productivity ?. Use the scale 5=A very great extent, 4=Great extent, 3=Moderate extent,2=Little extent and 1=No extent at all
|Training methods |5 |4 |3 |2 |1 |
|Class room training | | | | | |
|E-learning | | | | | |
|On-job-training. | | | | | |
|Seminar/workshops | | | | | |
SECTION 5 – Best training strategies for maximum employee productivity at KCB
16. Please indicate the extent to which you agree with the following statements? Use the scale where 5= strongly agree, 4= agree, 3= Neutral, 2= Disagree, 1= Strongly Disagree
|Statement |5 |4 |3 |2 |1 |
|Class room training is the best training strategy for maximum employee productivity at | | | | | |
|KCB | | | | | |
|E-learning is the best training strategy for maximum employee productivity at KCB | | | | | |
|On-job-training is the best training strategy for maximum employee productivity at KCB | | | | | |
|Seminar/workshops is the best training strategy for maximum employee productivity at KCB| | | | | |
17. Could you suggest any other training strategy that could help to improve employees productivity in the bank
Appendix B: Timeline
|Date |Activity |Responsibility |Objective |
|August 20th-September 10th, 2011 |Wide reading on the area of study |Researcher |Selection of topic |
|September 10th-20th, 2011 |Discussion with Lecturer |Researcher and Lecturer |Narrow down the topic |
|September 26th-November 5th, 2011 |chapter one writing |Researcher |Proposal writing |
|November 7th - 20th, 2011 |Chapter two and three writing |Researcher |Compilation of research proposal|
|December 3rd 2011 to 18th Jan 2012 |Review of the chapters and editing |Researcher and Supervisor/Reader |Preparation of error-free |
| | | |proposal for submission |
|January 19th – 30th ,2012 |Proposal defense |Researcher and panel |Permission to collect data |
|February 1st – 28th, 2012 |Data collection |Researcher and research assistants |Collection of data for analysis |
|March 1-15th, 2012 |Data entry and analysis |Researcher and data analyst | |
|March 16th- 25th 2012 |Chapter Four and Five Writing |Researcher |Report writing |
|March 26th – 1st April, 2012 |Review of the document |Researcher and Supervisor/ Reader |Document perfection |
|April 11th- 30th ,2012 |Submission of thesis copies for |Researcher |Preparation of final defense |
| |defense | | |
|May 1st – 20th 2012 |Thesis defense |Researcher and panel |Final defense |
|May 21st – 30th 2012 |Binding and Submission of clean |Researcher |Graduation clearance |
| |copies | | |
Appendix C: Budget
|Activity |Cost (Kshs) |
|Printing papers |3,000.00 |
|Binding |2,000.00 |
|Questionnaire photocopy |500.00 |
|Data collection |3,000.00 |
|Data entry and analysis |10,000.00 |
|Miscellaneous |1,500.00 |
|Research Assistant |20,000.00 |
|Total |40,000.00 |
Employees’ self efficacy
Employee Productivity • -Work output per time • -Skills development • -Efficiency • -Accuracy
Class room training;
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