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Impact of Training and Development On Employee'S Performance in Banking Sector

The research paper investigates the impact of training and development on employee performance in the banking sector, emphasizing the importance of tailored training programs. Findings from a sample of 116 banking employees indicate that effective training enhances efficiency, reduces operational faults, and alleviates stress, with on-the-job training being the most beneficial method. The study concludes that proper training not only aids in employee development but also contributes to organizational success through improved performance and potential career advancement.
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0% found this document useful (0 votes)
40 views8 pages

Impact of Training and Development On Employee'S Performance in Banking Sector

The research paper investigates the impact of training and development on employee performance in the banking sector, emphasizing the importance of tailored training programs. Findings from a sample of 116 banking employees indicate that effective training enhances efficiency, reduces operational faults, and alleviates stress, with on-the-job training being the most beneficial method. The study concludes that proper training not only aids in employee development but also contributes to organizational success through improved performance and potential career advancement.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) 85

ISSN : 2581-7930, CIF : 2.965 , Volume 03, No. 01, January - March, 2020, pp 85-92

IMPACT OF TRAINING AND DEVELOPMENT ON


EMPLOYEE’S PERFORMANCE IN BANKING SECTOR

Dr. Urvesh Chaudhery


Ms. Sangeeta

ABSTRACT

Due to Dynamic nature of the environment, the Indian banking system is going through a
process of transformation. So, for the development of organisation as well as employees training and
development is important. The objective is to determine the impact of training and development on
employee performance .This research paper contain descriptive type and it is based on primary data
collected through questionnaire. The findings suggest that training and development enhance employee’s
efficiency and effectiveness but before this their need of training should be analyse properly. The Sample
of 116 respondents was collected who are working in the banking sector (including private, public sector
banks) to know their response regarding how training and development impact banking employee’s
performance, which training method most used in banking sector and training helps in reducing the stress
level of employees and minimize the faults in operations.
___________________________________________________________________________________

Keywords: Training, Development, Productivity, Employee Performance, Banking Sector, T & D.


___________________________________________________________________________________

Introduction
Training is mainly concerned with the improvement of practical, technical, and mechanical skills
of the trainers. Development is concerned with theoretical and conceptual knowledge of managers. Now
in today’s scenario most of the fields require training. In human resource management training and
development is one of the most important function of any organization especially in banking sector.
Training is an important tool in the wholesome strategy for development. Apart from the
organization (banking sector), imparted training creates additional capabilities in the employees to do the
job better and with more confidence. Now banking sector are developing different approaches, which are
significantly different from one other. Some banks have formulated detailed human resource policies,
which are proactive as far as staff in the bank concerned. Some banks has followed that policies, which
transform the bank progress continuously and innovative steps to provide best customer service through
well prepared and equipped staff, such banks will have a benevolent approach towards its human
resource both in the individual well being as also organizational (banks) placement, enhancement of
skills and capabilities and enabling them to work with mentor for his/her long-term career progression.
The training and development in today’s changing environment is becoming more and more
dynamic. The core function of any training department is to bridge the gap between the changing
requirement of the job & the abilities that individuals need to perform these tasks such as self-directed
leadership, self-motivated terms & self generated creativity to excel in their respective areas of
performance.
Literature Review
Different literature review not only provides the knowledge but also helps in analyzing the study
area. Motivate us to increase the scope of research along with providing theoretical and practical
knowledge.


Professor, Department of Management Studies, ACEM, Faridabad, Haryana, India.

MBA Student, ACEM, Faridabad, Haryana, India.
86 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

 Rana, N. , Chaudhery, U. (2012), appraise the level of HRD practices to assess the employees
satisfaction level about the Training and development as well as the reward and recognition of
employees. It was found that training helps the employees to gain better understanding of their
Job, what is to be done and then how to do it.
 According to research study of Ramakrishna (2012) In order to meet the challenges from other
competitive banks the executives of the bank are now in the position to modify their traditional
human resources practice into innovative human resources practices. This study has been
conducted to identify the areas of professional weaknesses to rectify well in advance so that no
loss takes place in the organization.
 According to research study of Mahbuba Sultana (2013) Data was collected from 1414
employees. The study was done in Dhaka. Correlation methodology was used in the research.
From their study concludes that employees is the valuable resource for any organization and the
success and failure depends upon the performance and productivity of the employees and this
study proves that the training improves the productivity and efficiency of the employees.
 According to research study of Ahmed Mohamed Mohamud (2014) suggested that training
affects the employee performance in public sector organization of Kenya. Collect 100 responses.
Data analysis was done through descriptive statistic. Findings showed training has a positive
impact on employee performance and benefits both the individual employees and the organization.
 According to research study of Prof Dr. Abdul Ghafoor Awan & Farwa Saeed (2014)
suggested that training enhance the quality of service and improve employee performance. Data
was collected from both type of banks i.e. Public and private sector bank. In their study
Random sampling method has been used for data collection from the public and private sector
banks of Lahore, Multan & Dera Ghazi khan. Findings show that training is an effective tools for
employee’s development.
 According to research study of Ekta Srivastava & Dr Nisha Agarwal (2014) highlighted that
training is very necessary in this changing environment. The findings suggest that training in
private sector bank is far better than public sector banks. The designing of training programs
should be prepared in such a way that it is easily understand by the employees so that it will
beneficial for the banks as well as to the employees. For data analysis and computation they used
primary method and secondary method both used. Structured questionnaire used which was filled
from various branches of axis bank and secondary data was collected from annual reports of
syndicate banks and axis banks for the year 2008 to 2013 that data was published by RBI.
Research Methodology
Objective of the study
 Impact of training and development on banking employee’s performance.
 Satisfaction of employees from the training and their process or designing.
 In future executive development programme is provided.
 Training helps the employees in promotion and monetary benefit in future.
 To determine which method of training helps in reducing the stress of the employees and
minimize the faults in day to day operation.
Sample Size
A sample of 116 respondents were taken into consideration
Sources of Data Collection
Both primary and secondary source of collection were used. In Primary source, Questionnaire
method is used and in secondary method books, journals, published research papers etc.
Tools used
In this Structured Questionnaire formed though Goggle forms and sent online to banking
employees. SPSS tool is used to get output of correlation, frequencies , mean , standard deviation,
regression.
Data Analysis
The following Analytical tools are undertaken for the research study in order to state the opinion
of various respondents regarding the training & development and their impact employees performance in
banking sector and further formulating the statistical result derived out of it from various statistical
techniques such as:
Dr. Urvesh Chaudhery & Ms. Sangeeta: Impact of Training and Development on Employee’s….. 87
 Frequency
 Mean
 Standard Deviation
 Correlation
 Regression
Q.1 From the following method under which training method you have trained?
Frequency Percent Valid Percent Cumulative Percent
Valid On the job method 39 33.6 33.6 33.6
Off the job method 8 6.9 6.9 40.5
Both 69 59.5 59.5 100.0
Total 116 100.0 100.0
Interpretation
From the above chart depicts that employees trained mostly from the both method i.e. On the
job training method and Off the job training method.59.5% employees trained from both the methods of
training But 33.6% employees trained through On the job training method which is more than Off the job
training method which is 6.9%.From all the we conclude that banking employees trained with both the
methods., its frequency shows 69.
Q.2 If you trained On the job training method then from the following which method you had
undergoes?
Frequency Percent Valid Percent Cumulative Percent
Valid Job rotation 71 61.2 61.2 61.2
Coaching 35 30.2 30.2 91.4
Others 10 8.6 8.6 100.0
Total 116 100.0 100.0
Interpretation
In this most of the employees trained from the job rotation according to employees, which is
61.2%.30.2% employees trained from the coaching method .But the others method not specify by the
employees which they trained..So In On the job training method mostly through job rotation method
employees are trained.
Q.3 Whether training which is given relevant according to the need of employees?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 78 67.2 67.2 67.2
No 9 7.8 7.8 75.0
Can't say 29 25.0 25.0 100.0
Total 116 100.0 100.0

Interpretation
Most of the employees agree that they get training according to the need of the employees.25%
employees didn’t know that they get training according to the need of the employees. From above table
conclude that training need analysis is done in the banking sector not all but in a few banks.
Q.4 Proper formal process of training is followed?
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 77 66.4 67.0 67.0
No 13 11.2 11.3 78.3
Maybe 25 21.6 21.7 100.0
Total 115 99.1 100.0
Missing System 1 .9
Total 116 100.0
Interpretation
More than 50% employees agree that formal process of training is followed. Only 11.3 % not
agree with that. It means proper discipline is maintained and evaluation of employees is also done after
training.
88 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

Q.5 Which training method more effective to minimize the faults in operations?
Frequency Percent Valid Percent Cumulative Percent
Valid On the job training method 78 67.2 67.2 67.2
Off the job training method 30 25.9 25.9 93.1
Others 8 6.9 6.9 100.0
Total 116 100.0 100.0

Interpretation
On the job training is most likely helps in reducing the faults in operations, according to 78
respondents. Only 30 respondents agree that off the job training method more effective to minimize the
faults in day to day operation. It means most of the employees comfortable with on the job training
method.
Q.6 Which training method helps in reducing the stress level of employees?
Frequency Percent Valid Percent Cumulative Percent
Valid On the job training method 71 61.2 61.2 61.2
Off the job Training method 32 27.6 27.6 88.8
Others 13 11.2 11.2 100.0
Total 116 100.0 100.0

Interpretation
According to this table 61.2 % employees through on the job training method feel minimum
stress level. Only 27.6% comfortable with off the job training method. So from above we can conclude
that on the job training method not only minimize the faults but also reduce the stress level.
Q.7 Do you agree that training helps the employees in promotion and monetary benefits in
future?
Frequency Percent Valid Percent Cumulative Percent
Valid Agree 79 68.1 68.1 68.1
Disagree 9 7.8 7.8 75.9
Neutral 28 24.1 24.1 100.0
Total 116 100.0 100.0

Interpretation
Out of 116 employees, 68.1 employees agree that through training promotion , monetary , non –
monetary benefit is possible..Only 9 employees not agree with that. From this we can conclude that
training helps the employees to achieve the career goal along with organizational goal.
Hypothesis
H0: There is no relationship between employees trained with different on the job training methods
and training helps in promotion and monetary benefits in future.
H1: There is a relationship between employees trained with different on the job training methods and
training helps in promotion and monetary benefits in future .
H0: There is no relationship between training methods helps in reducing the stress level of
employees and training methods more effective to minimize the faults in operations.
H1: There is a relationship between training methods helps in reducing the stress level of employees
and training methods more effective to minimize the faults in operations
Statistics
Which training which training If you trained On the job Do you agree that training
method more method helps in training method then helps the employees in
effective to minimize reducing the from the following which promotion and monetary
the faults in stress level of method you had benefits in future?
operations ? employees? undergoes?
N Valid 116 116 116 116
Missing 0 0 0 0
Mean 1.40 1.50 1.47 1.56
Std. Deviation .617 .692 .652 .858
Sum 162 174 171 181
Dr. Urvesh Chaudhery & Ms. Sangeeta: Impact of Training and Development on Employee’s….. 89
Relationship between on methods of training and training helps the employees in promotion &
monetary benefits in future and reduce stress level and minimize faults in operations.
Correlations
If you trained On Do you agree that Which training Which training
the job training training helps the method more method helps
method then from employees in effective to in reducing the
the following promotion and minimize the stress level of
which method you monetary benefits in faults in employees?
had undergoes? future? operations ?
If you trained On the job Pearson
1 .345** .134 .202*
training method then from Correlation
the following which method Sig. (2-tailed) .000 .152 .029
you had undergoes? N 116 116 116 116
Do you agree that training Pearson **
.345 1 .135 .154
helps the employees in Correlation
promotion and monetary Sig. (2-tailed) .000 .148 .099
benefits in future? N 116 116 116 116
Which training method Pearson
.134 .135 1 .367**
more effective to minimize Correlation
the faults in operations ? Sig. (2-tailed) .152 .148 .000
N 116 116 116 116
which training method helps Pearson * **
.202 .154 .367 1
in reducing the stress level Correlation
of employees? Sig. (2-tailed) .029 .099 .000
N 116 116 116 116
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Moderate Correlation Range
Positive Moderate Correlation- +0.25 _ +0.75
Negative Moderate Correlation -0.25_ -0.75
Inferences
 In this the correlation between trained with different on the job training method and training
helps in promotion and monetary benefits in future is 0.345 as it lies between the range +0.25_
+0.75. Here also their exist a relationship between these two variables at moderate level but
doesn’t indicate perfect correlation.
 In this the correlation between training methods helps in reducing the stress level of employees
and training methods more effective to minimize the faults in operations is 0.367 as it lies
between the range +0.25_ +0.75. Here also their exist a relationship between these two
variables at moderate level but doesn’t indicate perfect correlation.
Analysis using linear regression for training methods and training helps the employees in
promotion & monetary benefits in future
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .345a .119 .111 .615
a. Predictors: (Constant), Do you agree that training helps the employees in promotion and monetary benefits in future?
ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression 5.817 1 5.817 15.384 .000b
Residual 43.105 114 .378
Total 48.922 115
a. Dependent Variable: If you trained On the job training method then from the following which method you had undergoes?
b. Predictors: (Constant), Do you agree that training helps the employees in promotion and monetary benefits in future?
Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.065 .119 8.954 .000
Do you agree that training helps the
employees in promotion and monetary .262 .067 .345 3.922 .000
benefits in future?
a. Dependent Variable: If you trained On the job training method then from the following which method you had undergoes?
90 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

Inference
We note that intercept slope terms are 1.065 and 0.262 respectively. This shows that 0.262
increase in promotion and monetary benefits in future due to 1.065 increase in different methods of on
the job training methods
Correlation results indicate that there is a relationship between trained with different on the job
training methods and training helps the employees in promotion and monetary benefits in future (sig=
0.000 r= 0.345). R is the multiple correlation coefficients, between the predicated values of which on the
job training method had undergoes the dependent variable and employees promotion and monetary
benefits the independent variable. Adjusted R-square shows that 0.119 of the variance the independent
variable which means 11.9% of the change in the which on the job training method the dependent
variable. Std. Error of the estimated is 0.615 compared with the mean of the “Predicted” value of the
dependent variable. The computed value of F is 15.384 at 5% significance level. The tabulated value for
F148 at 5% level is 3.90. As our F value is 15.384 and this is very high with respect to tabulated value
which means hypothesis accepted
Equation: Trained with different on the job training methods= 1.065 + 0.262
Analysis using linear regression for training methods helps in reducing stress level and more
effective to minimize faults in operations
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .367 .135 .127 .576
a. Predictors: (Constant), which training method helps in reducing the stress level of employees?
ANOVA
Model Sum of Squares df Mean Square F Sig.
b
1 Regression 5.891 1 5.891 17.734 .000
Residual 37.868 114 .332
Total 43.759 115
a. Dependent Variable: Which training method more effective to minimize the faults in operations ?
b. Predictors: (Constant), which training method helps in reducing the stress level of employees.
a
Coefficients
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
1 (Constant) .906 .128 7.061 .000
which training method helps in reducing
.327 .078 .367 4.211 .000
the stress level of employees?
a. Dependent Variable: Which training method more effective to minimize the faults in operations?
Inference
We note that intercept slope terms are 0.906 and 0.327 respectively. This shows that 0.327
increases in different methods of training reduce stress level of employees due to 0.906 increases in
different methods of training more effective to minimize the faults in operations.
Correlation results indicate that there is a relationship between training methods helps in
reducing the stress of the employees and training helps in minimizing the faults in operations (sig= 0.000
r= 0.367). R is the multiple correlation coefficients, between the predicated values of training methods
helps in minimizing the faults in operations the dependent variable and training methods helps in
reducing the stress of the employees the independent variable. Adjusted R-square shows that 0.135 of
the variance the independent variable which means 13.5% of the change in the dependent variable. Std.
Error of the estimated is 0.576 compared with the mean of the “Predicted” value of the dependent
variable. The computed value of F is 17.734 at 5% significance level. The tabulated value for F148 at 5%
level is 3.90. As our F value is 17.734 and this is very high with respect to tabulated value which means
hypothesis accepted
Equation: Trained with different on the job training methods= 0.906 + 0.327
It means different training methods reduce the stress level of employees is associated with
increase in minimizing the chances of faults in operations.
Dr. Urvesh Chaudhery & Ms. Sangeeta: Impact of Training and Development on Employee’s….. 91
Findings
In today’s environment training play an important role ,especially in banking sector. So findings
from this project are:
 Banking employees mostly trained with both the methods of training:
 On the job training method
 Off the job training method
 On the job training is most likely helps in reducing the faults in operations, according to 78
respondents. Only 30 respondents agree that off the job training method more effective to
minimize the faults in day to day operation. It means most of the employees comfortable with on
the job training method.
 From the employees response we find that training need analysis is also done for the existing
employees of the banking sector.
 We find the moderate correlation between the methods of training and it helps in promotion and
future benefits in future. It shows that training helps in the career development of the
employees.
 From the data analysis moderate correlation is also exist in training reduce the stress level and more
effective to minimize the faults in operations which is beneficial for both employees and banks.
 According to this table 61.2 % employees through on the job training method feel minimum stress
level. Only 27.6% comfortable with off the job training method. So from above we can conclude
that on the job training method not only minimize the faults but also reduce the stress level.
 Out of 116 employees, 68.1 employees agree that through training promotion, monetary, non –
monetary benefit is possible..Only 9 employees not agree with that. From this we can conclude
that training helps the employees to achieve the career goal along with organizational goal.
 To reduce the stress most of the employees consider on the job training method is best as
compare to others.
 For minimizing the faults in day to day operations employees also considered on the job training
is best.
 More than 50% employees agree that their training improves the performance of the employees.
Conclusion
From the above computation we concluded that all the variables are not significantly correlated,
but moderately correlated. In this hypothesis 1 and hypothesis 2 is accepted which shows the training
helps in reducing the stress level of employees that how to do the work, complete work on time because
if employees gets trained then he/she can know the proper way of doing the work and complete work on
time which in turns helps in minimizing the faults in operations also.
In other variables the correlation not exists like the formal process of training, training relevant to
the need of employees. Only 67% employees agree that formal process is followed and 67.2 %
employees agree that training is given according to the need of the employees. It shows banking sector
need to improve in these areas.
Recommendations
 Need to improve the training process
It means there is a need to simple the process of training so that employees easily understand
what the organization wants, how they trained.
 Need of competent trainer
Only good skills not make the trainer competent, he should have convincing, influencing skills so
that trainees can also share their problem that where they face problem during the training.
 Proper training need analysis required
Training need analysis should be done carefully before giving the training. Because in training a
large amount is invested
 Frequent evaluation of performance of employees should not be done.
 Training programs not boring, it should be designed in such a way that employees want to
engaged in training.
92 International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS) - January- March, 2020

References
 Jadhav Ajit (2013),“A Study on Training and Development in Indian Banks”, ABHINAV National
Monthly Refereed Journal of Research in Commerce & Management, Vol.1, No.1, pp34-39.
 Mohamud, a. m. (2014). The effect of training on employee performance in public sector
organizations in Kenya. The case of nhif Machakos County (doctoral dissertation, university of
Nairobi).
 Purohit Manisha (2012), “An Evaluation of HRD Practices Followed in Co-operative Banks in
Pune Region”, ACADEMICIA: An International Multidisciplinary Research Journal, Volume 2,
Issue 8, pp 186-195.
 Ramakrishna G., Kamleshwari, Kumar, M. Girdhar, Krishnudu CH. (2012),“Effectiveness of
Training and Development Programmes- A Case Study of Canara Bank Employees in Kurnool
District”, International Journal of Multidisciplinary Research, Vol.2 No 4. Pp 150-162.
 Rana, N., Chaudhery, U. (2012) “Training Need Analysis: A Critical Success factor for T&D”.
Published in National journal “Virtue”. ISSN no. 2230-7117, vol. III, Issue 1, Pg. no. 148-159
 Srivastava, e., & Agarwal, n. (2014). Impact of training on bank employee performance: a
comparative study of public sector bank and private sector bank in India. International journal of
advance research in computer science and management studies.
 Sumaiya Shafiq and Sahibzada Muhammad Hamza (November 2017) “The effect of training
and development on employee performance in private company Malaysia” International journal
of education , Learning and training , Vol.2 (No.2) ,ISSN:2289-6694.


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