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A STUDY ON EFFECTIVENESS OF TRAINING & DEVELOPMENT WITH REFERENCE TOEMPLOYEES OF BANKING SECTOR IN MUMBAI, MAHARASTRA- A REVIEW JV’n Rashi Tandon, Research Scholar
JV'n Dr. Mini Amit Arrawatia, Supervised
Directorate of Research & Development Jayoti Vidyapeeth Women's University, Jaipur Dr. Devadutta Indoria, Co-Guide
Assistant Professor, V. Dev Autonomous Govt. College Jeypore, Odisha 1 BACKGROUND AND INTRODUCTION
―The most valuable asset of a 20th century company was its production Equipment. The most valuable asset of a 21st century institution will be its Knowledge Workers and their productivity (Ducker 1999).‖
With the extensive competition, greater demand for providing better product and services, continuously changes in technology and business environment today commercial banking sector is demanding more than ever in the past, today the emphasis is on trained employees in order to meet the requirements of the customer and the business survival. Today banking industry is calling for up to date/latest and broader banking knowledge, skills, abilities for maintaining their existence and growth, which demand for the proper and effective training to the employees.
Training and development offer competitive advantage to a firm by removing performance deficiencies, making employee stay long and meeting future employee needs.
Training as an organisational intervention may be defined as a well thought of set of activities aimed facilitates learning of knowledge, attitude and skills among its people in the organisation to improve their current job performance and contribute to the achievement of organisational goals. On the other hand, development pertains to long term planned efforts to enhance the total growth of human resource that will lead to the fulfilment of personal and organisational goals.
1.1 Scope of Study
In terms of concept the scope of the study covers key variables like attitude towards training, perception of training needs, training effectiveness and outcome variables like job satisfaction, motivation and career development. In terms of
context, the study would be carried with reference to employees of private banks in Mumbai. This scope is depicted below in the form of the basic research model-
Figure 1 Model for the study 1.2 Research Objectives
Following were the objectives set for the research –
1) To identify the attitude of the bank employee towards the training and development programmes in private sector commercial banks of Mumbai, Maharashtra.
2) To find the relation between effectiveness of training and development on motivation level, Job satisfaction and career development of bank employees in the private sector commercial banks.
3) To study the perception of the bank employees for resolving the pertinent challenges of the training and development programmes practices and measures in banking.
4) To assess the effectiveness of training from an employee’s perspective reading the existing training and development policies being in force in private sector commercial banks.
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5) To suggest measures to enhance theeffectiveness of the training programmes.
2. OBJECTIVES OF LITERATURE REVIEW
In the context of this research, the literature review was carried with the following objectives–
a) To review literature in general on training covering its various facets and
b) To specifically review the areas of training effectiveness and its impact.
2.1 Guidance Used For Survey of Literature –
a. References would be made both to Indian and International literature to gain a broader understanding of the developments,
b. Researchers have proposed some ideas/models. These have been reproduced in their original form with adequate references so as to get a clear idea of their proposition. In this regard reference is made to clause 7(i) of the University Grants Commission (Promotion of Academic Integrity and Prevention of Plagiarism In Higher Educational Institutions) Regulations, 2018 dated 23rd July, 2018 that excludes attributed work from similarity count.
2.2 Review of Literature
2.2.1 General Review on Training and Training Effectiveness
1. Training is a systematic process to improve the performance of employees, and it provides a connection between job requirements and the current job specification of the employees.
Further, training requires time, energy, and money. The findings of the survey suggested that the respondents had neutral perceptions on all factors (facilities and materials, contents, training schedule, training environment, presentation style from one side).
Similarly, it was concluded that there was a strong positive correlation between the five factors related to training and its
effectiveness. (Hajjar and Alkhanaizi, 2018).
2. The organization must focus on the assessment of the impact of training on trainee’s performance and behavior to determine the effectiveness of a training program (Kirkpatrick & Kirkpatrick, 2016). It is, therefore, inevitable that preparation and planning are needed by the organization to ensure that the training program is effective.
3. Although some rule of thumb may be useful, eventually evaluators need to understand the needs of the stakeholders so that resources and time are not wasted. To find out if employees acquire the necessary knowledge and skills required by the job, a test must be given.
Organization thus must assess the effectiveness of the training by giving a test to employees (Markgraf, 2016).
4. The Training Contents are an important factor of training effectiveness. McNamara (2016) suggested that it is important to select training activities that will surely improve the teaching and learning process, which include instructor-led sessions, web-based training, computer-based training, and interactive, self-directed, or multimedia-inspired lessons. By selecting the most suitable materials and media, trainees may be able to maximize their knowledge, skills and attitude toward the training program. During the development phase, training design must be piloted to ensure the content is applicable and understandable by the learners. All the important points must be checked, like the accuracy of the contents, the logical flow of materials to be presented, and the proposed course, learning outcomes and objectives that are suitable to the trainees.
5. Brimstin and Hester (2015) emphasized that the needs of the stakeholders must be give due consideration when evaluating training programs. The authors suggested that 100% of training
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should be conducted for anevaluation at the participant’s reaction level.
6. Training is an essential aspect to increase productivity and competence of employees so as to keep the business going. The main reason is to develop skills and knowledge of employees as per the requirements of the job and eliminate performance issues (Surbhi, 2015)
7. In a set-up of social ownership, trainees apply the concepts that they have learned from training in the actual world. Those who have attended training can develop the capacity to teach others by demonstrating how they apply concepts in their day-to-day existence. Finally, in skill assessment, trainees provide a clear account of skill and performance improvements directly related to training (Eades, 2014).
8. Training and development ensures that randomness is reduced and learning and behavioral change takes place in a formal structured format. In the field of human resource management, training and development is an activity concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. The term has been known by several names, including human resource
development, employee
development, and learning and development (Harrison Rosemary, 2005).
9. Training and development are indispensable strategic tools for effective individual and organization performance, thus, organization are spending money on it with confidence that it will get them a competitive advantage in the business world (Lynton, R.P., Pareek, U. 2000, Edralin, D.M. 2004, Birdi, K et. al, 2008, Weil, A., Woodall, J. 2005).
10. For any organization to achieve its stated goals and objective in a competitive world, adequate and relevance training and development of staff cannot be over looked. Organization are expected to identify training need of its employees and design training programs that will assist to optimally utilize their workforce towards actualization of organization objective (Kennedy, 2013).
2.2.2 Training and Its Impact
1.
In a literature review on training and development and its impact on quality of work life Pallavi Kulkarni (2013) has given the following table of some of the studies on this aspect–Table 2.1 Some prominent studies on Training and Development (as per Pallavi Kulkarni, 2013)
Author Opinions of different authors regarding Training & Development Oatey (1970) Training improves a person’s skill at a task. Training helps in
socially, intellectually and mentally developing an employee, which is very essential in facilitating not only the level of productivity but also the development of personnel in any organization.
Yoder (1970) Training and development in today’s employment setting is far more appropriate than training alone since human resources can exert their full potentials only when the learning process goes for beyond the simple routine.
Hesseling (1971) Training is a sequence of experiences or opportunities designed to modify behavior in order to attain a stated objective.
Kane (1986)
If the training and development function is to be effective in the future, it will need to move beyond its concern with techniques and traditional roles. He describes the strategic approaches that the organization can take to training and development, and suggests that the choice of approach should be based on an analysis of the organization’s needs, management and staff attitudes and beliefs, and the level of resources that can be committed. This more strategic view-point should be of use in assessing current efforts as well as when planning for the
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future.
Raymond (1986)
The influences of trainees’ characteristics on training effectiveness have focused on the level of ability necessary to learn program content. Motivational and environmental influences of training effectiveness have received little attention. This analysis integrates important motivational and situational factors from organizational behavior theory and research into a model which describes how trainees' attributes and attitudes may influence the effectiveness of training.
Adeniyi (1995) Staff training and development is a work activity that can make a very significant contribution to the overall effectiveness and profitability of an organization.
Chris (1996) Training and development aim at developing competences such as technical, human, conceptual and managerial for the furtherance of individual and organization growth.
Seyler, Holton III, Bates, Burnett and Carvalho (1998)
The continuous changing scenario of business world, training is an effective measure used by employers to supplement employees’
knowledge, skills and behaviour.
Akinpeju (1999)
The process of training and development is a continuous one. The need to perform one’s job efficiently and the need to know how to lead others are sufficient reasons for training and development and the desire to meet organizations objectives of higher productivity, makes it absolutely compulsory.
Oribabor (2000) Training and development aim at developing competencies such as technical, human, conceptual and managerial for the furtherance of individual and organization growth.
Isyaku (2000) The process of training and development is a continuous one. It is an avenue to acquire more and new knowledge and develop further the skills and techniques to function effectively.
Tan, Hall and Boyce
(2003) Companies are making huge investment on training programmes to prepare them for future needs. The researchers and practitioners have constantly emphasised on the importance of training due to its role and investment.
Stavrou et al.,
(2004) The main goal of training is to provide, obtain and improve the necessary skills in order to help organizations achieve their goals and create competitive advantage by adding value to their key resources – i.e. managers.
Chih , Li and Lee (2008) Training programme is dependent on the following parameters for its success (i) perceived value of leaning programme (ii) attitude to teacher (iii) response to learning conditions (iv) desire to learn:
the degree to which trainees really want to learn and do well.
Giangreco, Sebastiano, &
Peccei (2009), The key determinants of overall satisfaction with training (OST) are perceived training efficiency (PTE) and Perceived usefulness of training (PUT).
Bates and Davis (2010) Usefulness of training programme is possible only when the trainee is able to practise the theoretical aspects learned in training programme in actual work environment. They highlighted the use of role playing, cases, simulation, mediated exercises, and computer based learning to provide exposure to a current and relevant body of knowledge and real world situations.
Kalaiselvan and Naachimuthu (2011)
Training cost and business benefits are drawn on X and Y axis respectively. Four quadrants were identified to highlight (i) strategic (Lower training cost and higher business benefits), (ii) Payback (Higher training cost and higher business benefits) (iii) Think (Lower training cost and lower business benefits) (iv)Drop (Higher training cost and higher business benefits).
Karthik R (2012) Training objectives tell the trainee that what is expected out of him at the end of the training program. Training objectives are of great significance from a number of stakeholder perspectives; Trainer, trainee, designer, evaluator.
2.3 Observations and Research Gap Based on collective consideration of the research material, the following could be deduced -
a. There is an absolute consensus amongst the researchers and authors about the benefits of
training. Availability of training benefits both the individual and the organization.
b. Researchers have also highlighted positive role of training in enhancing individual knowledge, skill and
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competencies. Two major thrustareas are knowledge and skill enhancement.
c. Effectiveness of training has been attributed to factors like training content, mode of delivery, use of IT resources and other such factors.
d. Assessment of training benefits have been studied more at individual or team level as compared to organizational level.
2.4 Attitude Towards Training
An attitude is a hypothetical construct that represents an individual's degree of liking or disliking for something.
Generally attitudes are negative or positive views of a thing, person, event or place — this is quite often called as the attitude object. People can also be ambivalent or conflicted towards an object, implying that they simultaneously possess both negative and positive attitudes toward the item under consideration. Attitudes are products of judgments. They are generally found to develop in line with the ABC model (affect, behavior & cognition).The affective response is an emotional response that reflects an individual's degree of preference for an entity. The behavioral intention is a typical behavioral tendency or verbal indication of an individual. The cognitive response is an evaluation cognitively done of the entity that forms an individual's beliefs about the object.
Most attitudes are the products of either observational learning or direct experience from the environment.
2.4.1 Attitude Formation
Unlike personality, attitudes can be expected to change as a function of experience. Tesser (1993) has argued that hereditary variables may impact attitudes - but believes that they may do so only indirectly. For instance, consistency theories, that implies that we must be consistent in our values and beliefs. The most popular example of such a theory is the Dissonance-reduction theory, associated with Leon Festinger, even though there are others, such as the balance theory as well.
2.5 Training Effectiveness
Effectiveness in general means achieving the objectives for which an activity was undertaken. If the predetermined objectives are achieved the activity is said to be effective. Conversely if they are not achieved the activity is said to be ineffective. When we evaluate ―effective training,‖ we can say that that training was effective when the employee demonstrates the expected behavioral change (new knowledge, new skill, etc.) they learned during the training.
Training effectiveness is essentially a measure that assesses the degree to which training improved the employee’s skill, knowledge and behavioral pattern within the organization as a result of the training. In simple words the questions to be asked is – ―Did the training do what it was supposed to do? Did employees learn what they were expected to learn? Were the employees who attended training able to do what they should be able to do once they left the training center?‖
3 CONCLUSION
A collective consideration of the literature review, the research gap and the conceptual and contextual discussion leads us to the following conclusions –
Both perception of training needs and attitude towards training are important factors impacting training effectiveness. A positive perception and a positive training attitude facilitates better participation of employees in the training which is one of the important pre- requisites for training effectiveness.
Both the factors are subject to change and the right intervention by the organization can turn these factors positive. The HR department has a vital role to play in this regard.
Training effectiveness is important both from a cost and return point of view.
While on one hand organizations incur significant expenditure on training, the expected outcome from effective training can be highly valuable. Ineffectiveness thus hits organizations both in terms of direct cost that is incurred and loss of opportunities of increased productivity and growth.
Measuring effectiveness of training is a difficult task. A number of models have been suggested to measure
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effectiveness of training. However, themodels can be customized in line with the nature of training imparted, the type of organization etc.
Job satisfaction, motivation and career development are all important not only from an employee’s point of view but from the employer’s point of view as well.
They can lead to tangible and intangible benefits for the organization. Effective training has a significant impact on all these three variables.
The banking sector in India is growing rapidly especially in the wake of policy decisions like demonetization. Its importance in the economy has grown manifold in recent years. Hence a study like the current one, that tries to measure the effectiveness of training and its impact on job satisfaction, motivation and career development assumes significance as employees are the most valuable asset for the banking sector which is a predominantly service business. The sector is expected to grow in a big way in the years to come with impetus on digital transactions by the Government. Private sector banks are an important part of the banking system of the country. They have shown a steady growth over the past years and are expected to play a much bigger role in the Indian economy. Just like private education augments the public education system, private banks will have to help the Government in a big way to manage the kind of banking needs the country has, thanks to its huge population and a large segment of unbanked people.
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