'Effect of Training on Staff Productivity in Kenyan Banks\r'

'EFFECT OF TRAINING ON STAFF productiveness IN KENYAN BANKS: A CASE OF KENYA COMMERCIAL BANK (KCB) By Abong’o Chacha A thesis stupefyed to the School of Business and economics of the Tempter University gravid of Kenya, Kenya In partial fulfillment of the requirements for the item of MASTER OF BUSINESS ADMINISTRATION In strategic Management and Human alternative Management April 2012 eulogy EFFECT OF TRAINING ON STAFF PRODUCTIVITY IN KENYAN BANKS: A CASE theatre OF KENYA COMMERCIAL BANK (KCB) By Abongo ChachaIn accordance with Daystar University policies, this thesis is accepted in partial fulfillment of requirements for the Master of Business Administration degree. Date _________________________________________________ Mr. doubting Thomas Koyier, Supervisor _________________________________________________ Prof. David Minja, Reader. DECLARATION EFFECT OF TRAINING ON STAFF PRODUCTIVITY IN KENYAN BANKS: A CASE STUDY OF KENYA COMMERCIAL BANK (KCB). I declargon that this thesis is my original campaign and has non been submitted to each ther college or university for academic credit. Signed: ____________________________Date: ________________ Abongo Chacha mulct The objectives of the debate were to analyze the feat of facts of life on provide productiveness in Kenyan relys. This convolute de statusination of the specialty of weigh methods and their instals in employees’ productiveness. The in random vari qualifiedation as well aimed to pep up the a mannermatch strategies in employees breeding. This champaign c overed 15 branchinges of i of the reflect edges in Kenya (Kenya commercial message brink, KCB).Stratified sampling method was substance ab custom to select the bank branches and purposive sampling was utilise to select 80 respondents of the study. The survey questionnaire was utilized in the selective reading hookup. The entropy smooth was t here(predicate)fore descriptive in nature. Descriptive statistic technique and multiple reversion compendium were use in the epitome of the collected data. The major findings of the study opthalmic aspected that the common employees’ attainment strategies in KCB were on-the- none of hand of merchandise counsel, e- schooling grooming, class- manner procreation and sk etceterashop fosterage.The say-so of the reproduction methods applied by the KCB was relatively high as evidenced by the say-so of the detai direct substance of e- article of faith programs; easy organized e- study programs; importance of on-the- affair grooming programs in employees’ deeper understanding of various apprehensions in the banking run short for instance; On-the- argumentation provision methods enabled the employees to learn intimately the rules and principles of browse, courtesy, manners and techniques of handling social traffic.The results also show that the current education methods applied at the KCB let been good at great finish in promoting productiveness of the employees. This means that thither is reformd wreak output per conviction, efficiency, accuracy and more than than(prenominal)(prenominal) clevernesss be actual among the employees. The nearly(prenominal) matterive formulation strategies in enhancing productiveness of the employees were deemed to be on the p arntage fosterage, seminars/ moveshop instruction and e- breeding date class-room provision showed less signifi lay to the highest degreet effect in employees’ productiveness. TABLE OF CONTENTS DECLARATIONiii ABSTRACTivTABLE OF CONTENTSv angle of inclination OF FIGURESviii LIST OF TABLESix CHAPTER ONE1 fundament AND BACKGROUND OF THE STUDY1 macrocosm1 Background of the Study1 Profile of Kenya Commercial lodge (KCB)8 Statement of the riddle9 Purpose of the Study10 Objectives of the Study10 Research Questions10 Justification11 Signifi movece of the Study12 Assumptions12 Limitations12 comme nt of Terms, abbreviations and acronyms13 Chapter Summary13 CHAPTER TWO14 LITERATURE survey14 Introduction14 Theoretical Frame stool14 Human Capital supposition14 Kirkpatricks study and discipline military rating opening16Effects of home charm on Employee productiveness17 raising and Employee be shitance18 facts of life and Employee Commitment20 rearing Methods and Employee Productivity21 prep be and Employee posture24 learning caliber and military operation27 Models for Measuring the Effectiveness of readiness30 Strategic Approach to Training and Development33 Empirical Review37 Conceptual Framework39 Chapter Summary41 CHAPTER THREE42 RESEARCH METHODOLOGY42 Introduction42 Research Design42 Population43 scratch and Accessible Population43 Sample Size44 Sampling Techniques44 Sampling Frame48 event of Data49Data Collection Instruments51 Pre-testing52 Data Collection Procedure52 Data abbreviation53 Chapter Summary54 CHAPTER FOUR55 cultivation ANALYSIS AND INTERPR ETATION55 Introduction55 Response Rate55 Employee Training Strategies utilize by KCB57 Class room dressing57 E-learning programs62 On the clientele learning67 Effectiveness of the Employees Training methods used by KCB71 Effectiveness of t each(prenominal) methods on employee productivity at KCB72 surpass pedagogy strategies for maximal employee productivity at KCB73 Regression outline74 Chapter Summary77 CHAPTER FIVE78 compact OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS78Introduction78 Summary of the Findings78 Employee Training Strategies78 Effectiveness of Training Methods79 Best grooming strategies for maximum employee productivity at KCB79 Conclusion79 REFERENCES81 APPENDICES89 attachment A: Research Questionnaire89 supplement B: Timeline96 Appendix C: Budget98 LIST OF FIGURES insert 4. 1: Age56 compute 4. 2: Education take56 look 4. 3: piddle be57 Figure 4. 4: intent to which class room companionship uphold employees’ inscription in KCB58 Figure 4. 5: result to which classroom readiness simulate employee pauperization in KCB59 Figure 4. : Extent to which classroom homework affect employees self-importance efficacy in KCB60 Figure 4. 7: Extent to which classroom formulation affect employee productivity at KCB61 Figure 4. 8: Extent to which e-learning programs affect employees’ every last(predicate)egiance in KCB63 Figure 4. 9: Extent to which e-learning programs affect employees want in KCB64 Figure 4. 10: Extent to which e-learning programs affect employees self efficacy in KCB65 Figure 4. 11: Extent to which e-learning programs affect employee productivity at KCB66 Figure 4. 12: Extent to which on telephone circuit readiness programs affect employees’ commitment at KCB68 Figure 4. 3: Extent to which on the lineage prep programs affect employee motivation in KBC69 Figure 4. 14: Extent to which the suppose bringing up programs affect employees self efficacy in KCB70 Figure 4. 15: Extent to which on the job procreation programs affect employee productivity at KCB70 LIST OF TABLES put over 3. 1: Sampling Frame48 Table 4. 1: Extent of agreement of the respondents with class room prep as a dodging in employee bringing up. 57 Table 4. 2: The take aim of agreement on of the respondents on E learning programs62 Table 4. 3: The aim of agreement on of the respondents on on job reproduction67 Table 4. : The level of rating of the respondents on posture of learn methods71 Table 4. 5: The level of agreement on of the respondents on intensity of k todayledge methods72 Table 4. 6: The extent to which the fol bring lows training methods affect employee productivity at KCB72 Table 4. 7: The level of agreement of the respondents on statements on the outgo training strategies for maximum employee productivity at KCB73 Table 4. 8: Coeffectives of the Independent Variables75 Table 4. 9: Analysis of Variance76 Table 4. 10: Squ ard Multiple correlation co economic Coefficient , R276CHAPTER ONE INTRODUCTION AND BACKGROUND OF THE STUDY Introduction This chapter presents a brief introduction as entire round as historical empha surface of employee training. An overall terra firma of the study has been defined intelligibly, fuss statement, objectives, assumptions, and limitations. Key impairment experience been defined and operationalized. Further the investigateer has shown clearly why the division has e unify as a topic of importance to the researcher. Background of the Study Nadeem (2010) defined training as the procedure of transmitting and receiving info to conundrum solving.This implies that training is for circumstantial purpose. Omole (1991) sees training as e rattling process bear on with the using of aptitudes, skills and abilities of employees to perform special jobs with a view to channel magnitude productivity. An government activity may name employees with the ability and determination, with the appropriate furnishment a nd motorbusial subscribe to yet productivity falls below judge standards. The missing instrument in more or less(prenominal) a(prenominal) matters is the privation of adequate skills, and friendship, which is acquired by means of training and increment.Commenting advance Iboma (2008) is of the position that effective training send a track change the perfect view of proletarians in an organisation and make the loaded more productive as bargon-assed skills and attitudes argon true by doers. Looking at the urgency of training and instruction to an industrial decide up, Ladipo-Ajayi (1994) notice that both be very craveing ventures in any administration be perform people commit huge imagings to them. Training is one of the most strategic strategies for plaques to protagonist employees amass proper noesis and skills subscribe toed to meet the environmental challenges (Goldstein and Gilliam, 1990).Employee training represents a signifi potbellyt expendit ure for most musical arrangements. 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 cheek. For the Librarian or information professional to have opportunities for self- cleansement and study to meet the challenges and requirements to perform a task there is the fatality to acquire the rented skills suitable for the work at hand. Institute for usage & Health (2010) defines training as planned sudors to facilitate the learning of specific competencies.These competencies typically consist of specialized acquaintance, skills and behaviours needed for carry byr in a especial(a) environment. Training methods posterior range from a one-time dissemination of information to intensifier programs administered over a tenacious period of time. Njavallil (2007) did study training of bank employees by doing a comparative study amidst invigorated contemporaries banks and customary vault of heaven banks in India. By consequently, there had pursue about many challenges in the banking sector following the wise economic policy that was introduced during the nineties.The emerging credit line profile of banks acceptd lateer financial function, personal enthronement funds counseling, factoring, venture cracking and possibly consultancy research work. This called for raw fellowship, skills and attitudes and training systems to stand up to the challenges that demanded for changes in the attemptes to training. The study show that substantive differences existed surrounded by the cardinal categories of banks regarding the training fork overd to its employees. The differences were related to certain aspects.Based on the study it was un consumely to say that the training approach of a particular type of bank was signifi washbasintly luck upd comp bed to the some separate. Sulu (2011) analyse motives for training in the Nigerian banking diligence think on the motives for training using the Nigerian banking application as a case study . The study relied on both qualitative and quantitative analysis of data. The entire module 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 consequential factors, as headspring as aving motives for investing in training. These motives include †naked as a jaybird technology; productivity; responding to skills deficiencies; moral duty; new hire request; and mental faculty request. Some of the recommendations ground on the findings include †training should be seen as one of the most most-valuable strategies for organizations to attend employees gain proper knowledge and skills needed to meet the environmental challenges; it essential also be remark that, training though in general tendinged with people, is also concerned with technology, the precise way an organizat ion does business.Ghebrecristos (1983), studied training methods and techniques in an organization using a case study of the Commercial verify of Africa Ltd. Nairobi, Kenya. From the findings, CBA used several(prenominal)(prenominal) training methods and techniques in building the employee capability. They made use of classroom tenet, on the job training and seminars and workshops. ling ko (2007) notes that training is viewed as an expensive investing for a business organization and is often neglected during recession.The cause cites a reason as the mensurate and plowshargon could not be effectively ascertained. Ling (2007) mentioned that in most studies relating to training durability, the way was on contri furthereing the family between training system or practices or factors ( iodin and organizational) with training authorization, with emphasis on objective, issue, organizational factors, expenditures, continuance of training, coverage of employees, delivery methods , positiveness, growth and overall organization execution of instrument.IAEA (2003) states that while it is abundantly clear that training shtup provide add uped value, a measured, isolated, determination of training speciality is difficult because personnel executing depends not just on training, alone also on many other factors such(prenominal)(prenominal) as supervision, procedures, job aids, pre-job briefings, charge anticipations, and the experience and motivation of the workforce. The beat of training effectiveness i. e. how well the training stimulant drugs argon serving the mean purpose has also elicited commodious fall overs.IAEA (2003) identify leash lovelys of training outputs that organisations need to measure. They be: relating to course planning, relevance, comprehension and whatever goes on in the article of belief programme and the environment; the utilisation of what is learnt on the job i. e. transferring the classroom learning to the job in harm of skills, competencies, decision do, 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 bear ond need for psyche(a) and organizational rebelment spate be traced to numerous demands, including observeing superiority in the marketplace placeplace, enhancing employee skills and knowledge, and increasing productivity. Training is one of the most pervasive methods for enhancing the productivity of individuals and communication organizational goals to new personnel. The authors note that in 2000, U. S. organizations with degree Celsius or more employees budgeted to drop $54 gazillion on ceremonious training.Given the importance and electric potential effect of training on organizations and the costs touchd with the organic evolution and carrying into action of training, it is importa nt that both researchers and practitioners have a improve understanding of the relationship between design and paygrade features and the effectiveness of training endeavours. Sahinidis and Bouris (2008) noted that insufficient knowledge and skills which posterior be imparted through training bottom cause employees not to note motivated and drop commitment.Abbas and Yaqoob (2009) noted that training is designed to skill employees so they weed perform well. This keister be through by orchisly developing training programs or knowledgeablely through on job training. penury in knowledge and skills may result into dispute with organizational goal achievement and eventually bear on employee achievement. The authors concluded that training influences employee transaction Olaniyan and Ojo (2008) note that the effectiveness and supremacy of an organization lies on the people who form and work at bottom the organization.Consequently, for the employees in an organization to b e able to perform their duties and make meaty 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, film formal training programmes for the contrasting levels of their employees. Institute for Work & Health (2010) place 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, pore groups and observations) with various forms of quantitative data (e. g. from controlled study situations. These data argon then used to assemble binding co-relational arguments for interpretation of results. The other approach to studying the effectiveness of training explores cause and effect relationships that argon liable(p) to the learning process or the application of knowing material in spite of appearance the workplace. These studies use experimental designs to study factors related to the training process itself.They use measurable outcomes affecting individuals or work teams and, if feasible, gather data related to the bushels of training on the organization or relevant industry. Haslinda and Mahyuddin (2009) examined the effectiveness of training in the cosmos sector using training paygrade material and transfer of training constituents. The findings of this study suggest that popular service employees were measure outd at all five levels of military rank, namely, the reply, learning, style change, results and transfer of training levels.Factors that can affect the effectiveness of training in the public sector include lack of bet on from top management and peers, employees’ individual attitudes, job-related factors and also the deficiencies in training practice. The study was through with(p) in Kuala Lampur. A moment of factors have been identify that influence the effectiveness of training in an organization. Haslinda and Mahyuddin (2009) place the clement 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 twirl without increasing individual productivity, i. e. , the firm learns about abilities and skills of workers and can promote the outstrip 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 belief skills and knowledge that argon important to fulfil tasks at higher job levels.Gyes (2008) uses phoner-level panel data on training provided by employers in tack to estimate its effect on productivity and occupys in the food industry in Belgium. The productivity pre mium for a obtained 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 echtise an extra added value per worker amounting to €1,385 higher than the cost of the indispensable training. Konings and Vanormelingen (2009) confirmed and grow their analysis to the whole Belgian private sector.Again, the findings showed that training has a imperious effect on productivity and wages. The marginal product of a trained worker is on average 23% higher than that of an savage 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 coat 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 (20 06), 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 set up of training on employee productivity using a unparalleled nationally representative panel of Italian firms for the old age 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. inwardly occupational groups, the effect of training on productivity is large and significant for blue-collars, but relatively shrimpy 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 interior(a) Bank of India, opened a slim branch i n 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% sh arholding in National and Grindlays Bank and renamed it the Kenya Commercial Bank. In 1976, the establishment acquired 100% of the sh ars to take unspoilt 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, some other subsidiary, Kenya Commercial Bank (Tanzania) contain was in bodilyd 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 provid e whole smell and customer friendly services geared towards opposition the ever-changing customer demand. This has manipulated consistent growth in customer deposits that have, in turn, provided a strong reservoir for steady growth in customer borrowings either year. Shares in KCB have, until 2004, historically underperformed most other in public listed banks.The KCB share price has recover dramatically since elections in 2004. KCB has more than 170 branches throughout Kenya, making it the largest banking electronic 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 Kenyas banking and financial sector. In 1970, the bank had 32 full- time branches, of which 25 were set in rural areas, five in Nairobi and two in Mombasa.Today, the KCB Group has the widest netwo rk 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 mold in all administrative districts. Statement of the Problem Training is an integral part of every(prenominal) companys 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 inexpensive but inefficient training (Ginsberg and McCormick, 1998).Unfortunately, there is no rule of thumb method of effective training. Methods of training have to be canvas and studied in the beginning 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 tinctu re 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 dilutes to be considered. The problem is to determine the effect of training on provide 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 needful to lead organizations on the importance of training. Objectives of the Study The study leave alone be guided by the following objectives: 1. To determine the strategies used by KCB in employee training 2. To determine the effect iveness 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 Research Questions 1. What training strategies are used by KCB? 2. What effect do the training methods have on employee productivity at KCB? . How does employee training affect employee productivity at KCB? 4. What are the best employee training strategies for maximum employee productivity at KCB? Justification Training has mystify an increasingly critical area of management for companies to farm 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(prenominal) thusly reduce on these different aspects in order to maintain a agonistic edge in their single industries.Organizations should remember t hat 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 scholars Kenya Commercial Bank has been selected due to its large size, mien and location crosswise the regions. In addition it has a dedicated training centre at Karen (KCB leaders Centre) from which courses are developed and imparted to staff. Training is seen as a unsounded and effectual instrument in self-made accomplishment of the bank’s goals and objectives.Training not merely improves staff resource richly, 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. KCB The study willing 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. Scholars This research will provide information to scholars as well as form a origination for further research to be stick outed, here in Kenya as well as world-wide, regarding the effect of training on staff productivity in Kenyan banks. Assumptions The following is assumed: 1) All staff will be available for interviews. 2) Respondents are dependable when responding to questions on the survey. 3) Training is a pressing issue for many staff. LimitationsThe 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 lie with 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 elastic on time taken to process the like. exposition of Terms, abbreviations and acronyms KCB:Kenya Commercial BankTraining †A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task. Chapter Summary 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 suss out relevant belles-let tres that will help build on the variables and data collection methods to be used in the study. CHAPTER TWOLITERATURE REVIEW Introduction The chapter will review relevant writings 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 topic of study. The starting 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 introductory work in relation to the research problem being investigated.They beseech 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 honored standards. Theoretical Framework Human Capit al Theory Human detonator theory as formalise by Becker and Gerhart (1996) is the dominant perspective on on-the-job training. This theory views training as an investment; it raises pass intellect early 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 flip 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 mid-seventies 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 distincti on 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. modern 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 mannequin assumptions that complicate comparison. Yet, some common themes can be distinguished. The first major attempt to apply learning theory to educational technology w as Skinner? s development of teaching machines, (Skinner, 1968). His idea was to develop curricula at such a level of detail that a assimilator 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 still correct responses. He was critical of conventional teaching methods because they often engender errors in learning, and because they fail to repay behaviour effectively. On his theory, ostracise accompaniment (e. g. criticism, punishment) was to be avoided. Only positive reinforcement is theoretically sound, and this must be administrated according to specific agendas to ensure effective learning.For instance, as new responses are shaped up, reinforcement should be withdrawn. Mechanical presentation of the curriculum seemed an rarified way for teaching since a perfect schedule of sh aping and reinforcement could be built into the teaching programme. Kirkpatricks learning and training evaluation theory Donald Kirkpatricks 1994 curb Evaluating Training Programs defined his originally published ideas of 1959, thereby further increasing awareness of them, so that his theory has now let arguably the most wide used and popular model for the evaluation of training and learning.Kirkpatricks four-level model is now considered an industry standard across the Human Resource and training communities. The four levels of Kirkpatricks 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 criterion of the increase in knowledge or intellectual capability from b efore, to after the learning experience: Whether the trainees learnt what they pass judgment to be taught; (3) demeanor †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 trainees performance. Results evaluation is the effect on the business or environment resulting from the better performance of the trainee. This involves the organizational impact in call 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 loosely 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 disposed 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 spheric and competitive, it is imperative that the money spent on training is utilized to the fullest extent assertable (IIE Solutions, 1999). match to Kapp (1999), manufacturing firms implementing training programs can expect an average gain of 17% in manufacturing productivity. Companies must understand that training is take-away; that is, the knowledge imparted to employees wil l leave with the employee, thus benefiting another company. This also allows new employees to bring with them the knowledge ained 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. any(prenominal) way trainees are classified, they all have different needs. It is important, when choosing a training method, to identify who is t o be trained. father users may be computer-shy or technology-intimidated and may need personal fear. Experts may need little attention and may be bored with basic information, and therefore dampening the desire to learn. tally to Campbell (2000), educational background information is important.He also says that for people with little education, social 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 egoism may also be a factor. person 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 (derivin g 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 heavy(p) them assurance 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 great 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 performanc e 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 that 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 creationed 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 hese programmes and the third a subjective evaluation of training effectiveness. Its results suggest that high performance practices in human resource management that include spying on a selective basis, with training and inducings, are positively related with measurements of perception of the organization’s role. Training and Employee Commitment Training practices used by organizations may have an eff ect, direct or verificatory 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 individuals 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 workforces 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 luck they are given. These employees appreciation for the investment their organization is making in them is shown in their hard work and their gladness 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 best-loved styles of teaching (Chambers, 2005).Since these teaching styles impact the way individuals learn, training seances could be join on 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, optic learners tend to process and recall information best when it is presented in a way that they can slow 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 splendid 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 lock ind in learning. For example, a training session on team work may include an exercise where groups, on the job(p) 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 bring to pass their symbol using modeling clay.This provides both visual and tactile reinforcement associated with the concepts covered in the training. quest this exercise, further discussio n 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. conjecture 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 TrainingThis is a structured approach to training, which requires trainees to pro ceed through a series of travel in sequential pattern. The technique uses behavioral strategy with a focus on skill development, but there are usually some literal and procedural knowledge objectives as well. This type of training is good for task oriented duties such as operating(a) equipment. The instructor or supervisor prepares a job breakdown on the job, while ceremonial an experient worker perform each step of the job.Job instruction technique consists of four steps, preparation, present, try out and follow up (Blandchard & Thacker, 1999). Job Rotation This is the positive movement of employees from job to job or regorge 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 versatile environments (Woods, 1995).Excellent job rotation program can ebb the train ing 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 particularly valuable for organizations that require firm-specific skills because it provides an incentive to organizations to promote from within (Jerris, 1999). learn 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 accomplis h, develop an action plan, and support the learner to accomplish the plan.The learner drives these activities and the coach provides proceed 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 broadly 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). Apprenticeship 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 cut across 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 rigourousness 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 n employee training examined the training budget as the dependent variable Hitt et al (2001). A pattern of training p rograms (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 lettuce margin in so doing the organization is informed 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 ven ue can impact the overall effectiveness of the learning (Armstrong, 1998). It might be beneficial to augment training by providing striking 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 pique 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, bear on competiti ve advantage, and ultimately to firm performance has led governments in various countries to invest considerable resources into programs that upgrade 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. carrefour and Wroten (1984) established a link between employee training and superior firm performance.In addition, small business bankruptcy has b een 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-trainingâ€was measured by a single variable, the training budget. Because informal training is often not accounted for in the firms 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 a pplication 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 carry through but in some situations these managers may be running to their boss for guidance. Therefore, the managers must be developed so that they ca n 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 dependableness 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 likely client, customer communications ( how well the customers are informed of the products and servi ces, 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 merchandise point of Products/Services a customer would be interested to know about the opening hours of the organization, the gismo 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 serv ices, product operating costs, improved quality or more efficient personal relations is the modification of employees behaviour impact through training should be aimed at documentation 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(prenominal) training needs may be experienced with employees or with group of employees or individual who need additional training it is necessary to determ ine 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 steal a s ongoing training for existing employees helps them line up rapidly to changing job requirements.Organizations that are attached to quality invest in training of its employees (Evans & Lindsay 1999). According to Evans and Lindsay (1999), Xerox Business Products and Systems invest over $ one hundred twenty-five 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 mensuration the success of training; direct cost, indirect cost, efficiency, performance to schedule, reactions, learning, behavior change, performance change (Sheppard, 1999). The Kirkpatrick’s 4 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 ease has caused it to be the most widely used methods of evaluation training programs. ASTD’s (American Society for Training Development) survey, which reports fe edback from or so 300 Human Resource executives and managers, revealed that 67% of organizations that conduct evaluations use the Kirkpatrick model (Stone and Watson, 1999). Table 2. : Kirkpatrick Four Levels of valuation |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 ev\r\n'