THE EFFECT OF TRAINING ON WORKER’S PERFORMANCE IN AN ORGANIZATION

CHAPTER TWO

LITERATURE REVIEW

2.1 CONCEPTUAL CLARIFICATION

2.1.1 TRAINING

As one of the major functions within Human Resource Management, training has for long been recognized and thus attracted great research attention by academic writers (see e.g. Gordon 1992, Beardwell, Holden & Claydon 2004). This has yielded into a variety of definitions of training. For example, Gordon (1992, 235) defines training as the planned and systematic modification of behavior through learning events, activities and programs which result in the participants achieving the levels of knowledge, skills, competencies and abilities to carry out their work effectively. It is worth nothing that, as researchers continue with their quest into the training research area, they also continue their arguments into its importance. Some of these researchers argue that the recognition of the importance of training in recent years has been heavily influenced by the intensification of competition and the relative success of organizations where investment in employee development is considerably emphasized (Beardwell et al. 2004). Related to the above, Beardwell et al. (2004) add that technological developments and organizational change have gradually led some employers to the realization that success relies on the skills and abilities of their employees, thus a need for considerable and continuous investment in training and development. 3.2 Benefits of training The main purpose of training is to acquire and improve knowledge, skills and attitudes towards work related tasks. It is one of the most important potential motivators which can lead to both short-term and long-term benefits for individuals and organizations. There are so many benefits associated with training. Cole (2001) summarizes these benefits as below: 22

• High morale – employees who receive training have increased confidence and motivations;
• Lower cost of production – training eliminates risks because trained personnel are able to make better and economic use of material and equipment thereby reducing and avoiding waste; 3) Lower turnover – training brings a sense of security at the workplace which in turn reduces labor turnover and absenteeism is avoided;
• Change management – training helps to manage change by increasing the understanding and involvement of employees in the change process and also provides the skills and abilities needed to adjust to new situations;
• Provide recognition, enhanced responsibility and the possibility of increased pay and promotion;
• Help to improve the availability and quality of worker.

2.3 Training needs According to Wognum (2001, 408), training and development needs may occur at three organizational levels namely;

(1) Strategic level where needs are determined by top management while considering organizations goals, mission, strategy and problems, which need to be resolved or fixed

(2) Tactical level where needs are determined with middle management while considering developments needs to the coordination and cooperation between organization units and

(3) Operational level where needs are determined with lower executive management and other employees while considering problems related to operations such as performance problems of individual workers and departments in subject. In order to enable an organization formulate human resource training and development goals that will enable both formal and informal human resource training and development methods and programmes create a workforce that enables effectiveness and competitiveness, it is worth giving consideration to, providing proper coordination as well as proper incorporation of the needs within the three levels

The first issue is to identify the needs relevant to the organizations objectives. According to Wognum (2001) and Torrington et al. (2005), there are three 23 categories of identifying training and development needs. These include: resolving problems, this focuses on workers’ performance, improving certain working practices, this focuses on improvement regardless of the performance problems and changing or renewing the organization situation, which may arise because of innovations or changes in strategy.

2.2 TRAINING AND DEVELOPMENT METHODS

Nadler (1984:1.16) noted that all the human resource development activities are meant to either improve performance on the present job of the individual, train new skills for new job or new position in the future and general growth for both individuals and organization so as to be able to meet organization’s current and future objectives. There are broadly two different methods that organizations may choose from for training and developing skills of its employees. These are on-thejob training given to organizational employees while conducting their regular work at the same working venues and off-the-job training involves taking employees away from their usual work environments and therefore all concentration is left out to the training. Examples of the on-the-job training include but are not limited to job rotations and transfers, coaching and/or mentoring. On the other hand, off-the-job training examples include conferences, role playing, and many more as explained below in detail. Armstrong (1995) 25 argues that on-the-job training may consist of teaching or coaching by more experienced people or trainers at the desk or at the bench. Different organizations are motivated to take on different training methods for a number of reasons for example; (1) depending on the organization’s strategy, goals and resources available, (2) depending on the needs identified at the time, and (2) the target group to be trained which may include among oth

ers individual workers, groups, teams, department or the entire organization.

2.2.1 JOB ROTATION AND TRANSFERS

Job rotation and transfers (McCourt & Eldridge 2003, 356) as a way of developing employee skills within organization involves movements of employees from one official responsibility to another for example taking on higher rank position within the organization, and one branch of the organization to another. For transfers for example, it could involve movement of employees from one country to another. These rotations and transfers facilitate employees acquire knowledge of the different operations within the organization together with the differences existing in different countries where the organization operates. The knowledge acquired by the selected employees for this method is beneficial to the organization as it may increase the competitive advantage of the organization.

2.2.2 COACHING AND/OR MENTORING

This involves having the more experienced employees coach the less experienced employees (Devanna, Fombrun & Tichy 1984; McCourt & Eldridge 2003, 256; Torrington et al. 2005, 394 - 395). It is argued that mentoring offers a wide range of advantages for development of the responsibility and relationship building (Torrington et al. 2005, 394 – 395). The practice is often applied to newly recruited graduates in the organization by being attached to mentor who might be their immediate managers or another senior manager. This however does not imply that older employees are excluded from this training and development 26 method but it is mainly emphasized for the newly employed persons within the organization.

2.2.3 ORIENTATION

This is yet another training and development method. This involves getting new employees familiarized and trained on the new job within an organization. During this process, they are exposed to different undertakings for example the nature of their new work, how to take on their identified tasks and responsibilities and what is generally expected of the employees by the organization. They are further given a general overview of the organizational working environment including for example working systems, technology, and office layout, briefed about the existing organizational culture, health and safety issues, working conditions, processes and procedures.

2.2.4 CONFERENCES

A as a training and development method involves presentations by more than one person to a wide audience. It is more cost effective as a group of employees are trained on a particular topic all at the same time in large audiences. This method is however disadvantageous because it is not easy to ensure that all individual trainees understand the topic at hand as a whole; not all trainees follow at the same pace during the training sessions; focus may go to particular trainees who may seem to understand faster than others and thus leading tot under training other individuals.

2.2.5 ROLE PLAYING

Involves training and development techniques that attempt to capture and bring forth decision making situations to the employee being trained. In other words, the method allows employees to act out work scenarios. It involves the presentation of problems and solutions for example in an organization setting for discussion. 27 Trainees are provided with some information related to the description of the roles, concerns, objectives, responsibilities, emotions, and many more. Following is provision of a general description of the situation and the problem they face. The trainees are there after required to act out their roles. This method is more effective when carried out under stress-free or alternatively minimal-stress environments so as to facilitate easier learning. It is a very effective training method for a wide range of employees for example those in sales or customer service area, management and support employees.

2.2.6 FORMAL TRAINING COURSES AND DEVELOPMENT PROGRAMMES

These are a number of methods which may be used to develop the skills required within an organization. These course and programmes are usually a set of defined and known programmes where the contents, durations and all the details about the training are clear to both the organization and the personnel to be trained. Unlike informal trainings and programmes, formal training and programmes can be planned earlier and also plan for their evaluation. Employees may undertake these courses and programmes while completely off work for a certain duration of time or alternatively be present for work on a part-time basis. These programmes can be held within the organization (in-house) or off the job. Off the job is argued to be more effective since employees are away from work place and their concentration is fully at training. Depending on the knowledge needed, organization’s structure and policies, the trainers too may be coming within the corporation or outside the organization.

2.3 EMPLOYEE PERFORMANCE

Employee performance is normally looked at in terms of outcomes. However, it can also be looked at in terms of behavior (Armstrong 2000). Kenney et al. (1992) stated that employee's performance is measured against the performance standards set by the organization. There are a number of measures that can be taken into consideration when measuring performance for example using of productivity, efficiency, effectiveness, quality and profitability measures (Ahuja 1992) as 28 briefly explained hereafter. Profitability is the ability to earn profits consistently over a period of time. It is expressed as the ratio of gross profit to sales or return on capital employed (Wood & Stangster 2002). Efficiency and effectiveness - efficiency is the ability to produce the desired outcomes by using as minimal resources as possible while effectiveness is the ability of employees to meet the desired objectives or target (Stoner 1996). Productivity is expressed as a ratio of output to that of input (Stoner, Freeman and Gilbert Jr 1995). It is a measure of how the individual, organization and industry converts input resources into goods and services. The measure of how much output is produced per unit of resources employed (Lipsey 1989). Quality is the characteristic of products or services that bear an ability to satisfy the stated or implied needs (Kotler & Armstrong 2002). It is increasingly achieving better products and services at a progressively more competitive price (Stoner 1996). As noted by Draft (1988), it is the responsibility of the company managers to ensure that the organizations strive to and thus achieve high performance levels. This therefore implies that managers have to set the desired levels of performance for any periods in question. This they can do by for example setting goals and standards against which individual performance can be measured. Companies ensure that their employees are contributing to producing high quality products and/or services through the process of employee performance management. This management process encourages employees to get involved in planning for the company, and therefore participates by having a role in the entire process thus creating motivation for high performance levels. It is important to note that performance management includes activities that ensure that organizational goals are being consistently met in an effective and efficient manner. Performance management can focus on performance of the employees, a department, processes to build a product or service, etc. Earlier research on productivity of workers has showed that employees who are satisfied with their job will have higher job performance, and thus supreme job retention, than those who are not happy with their jobs (Landy 1985). Further still, Kinicki & Kreitner (2007) document that employee performance is higher in happy and satisfied workers and the management find it easy to motivate high performers to attain firm targets.

2.4 EFFECT OF TRAINING ON PERFORMANCE

In the real world, organizational growth and development is affected by a number of factors. In light with the present research during the development of organizations, employee training plays a vital role in improving performance as well as increasing productivity. This in turn leads to placing organizations in the better positions to face competition and stay at the top. This therefore implies an existence of a significant difference between the organizations that train their employees and organizations that do not. Existing literature presents evidence of an existence of obvious effects of training and development on employee performance. Some studies have proceeded by looking at performance in terms of employee performance in particular (Purcell, Kinnie & Hutchinson 2003; Harrison 2000) while others have extended to a general outlook of organizational performance (Guest 1997; Swart et al. 2005). In one way or another, the two are related in the sense that employee performance is a function of organizational performance since employee performance influences general organizational performance. In relation to the above, Wright & Geroy (2001) note that employee competencies change through effective training programs. It therefore not only improves the overall performance of the employees to effectively perform their current jobs but also enhances the knowledge, skills an attitude of the workers necessary for the future job, thus contributing to superior organizational performance. The branch of earlier research on training and employee performance has discovered interesting findings regarding this relationship. Training has been proved to generate performance improvement related benefits for the employee as well as for the organization by positively influencing employee performance through the development of employee knowledge, skills, ability, competencies and behavior (Appiah 2010; Harrison 2000; Guest 1997). Moreover, other studies for example one by Swart et al. (2005) elaborate on training as a means of dealing 30 with skill deficits and performance gaps as a way of improving employee performance. According to Swart et al., (2005), bridging the performance gap refers to implementing a relevant training intervention for the sake of developing particular skills and abilities of the employees and enhancing employee performance. He further elaborate the concept by stating that training facilitate organization to recognize that its workers are not performing well and a thus their knowledge, skills and attitudes needs to be molded according to the firm needs. It is always so that employees possess a certain amount of knowledge related to different jobs. However, it is important to note that this is not enough and employees need to constantly adapt to new requirements of job performance. In other words, organizations need to have continuous policies of training and retaining of employees and thus not to wait for occurrences of skill and performance gaps. According to Wright & Geroy (2001), employee competencies change through effective training programs. It not only improves the overall performance of the employees to effectively perform the current job but also enhance the knowledge, skills and attitude of the workers necessary for the future job, thus contributing to superior organizational performance. Through training the employee competencies are developed and enable them to implement the job related work efficiently, and achieve firm objectives in a competitive manner. Further still, dissatisfaction complaints, absentism and turnover can be greatly reduced when employees are so well trained that can experience the direct satisfaction associated with the sense of achievement and knowledge that they are developing their inherent capabilities (Pigors & Myers 1989). Most of the benefits derived from training are easily attained when training is planned. This means that the organization, trainers and trainees are prepared for the training well in advance. According to Kenney & Reid (1986) planned training is the deliberate intervention aimed at achieving the learning necessary for improved job performance. Planned training according to Kenney and Reid consists of the following steps:

• Identify and define training needs
• Define the learning required in terms of what skills and knowledge have to be learnt and what attitudes need to be changed.
• Define the objectives of the training
• Plan training programs to meet the needs and objectives by using right combination for training techniques and locations.
• Decide who provides the training Evaluate training.
• Amend and extend training as necessary.

2.5 THEORETICAL LITERATURE

Hardly do we discuss and analyze concept meaningfully in the social Sciences without linking them to or understanding them from some theoretical point of view. worker training and development are concepts which easily lend themselves to theoretical orientations. The functional superiority of theories as guideposts in all fields of human endeavor lies in the fact that rather than base action on judgments derived from mere experience, guesswork or speculations, theories enables a chosen line of action to be anchored in and guided by evidence derived from scientific research which makes the consequences of such an action fall as close in line with the intended direction as possible. In this work, the researcher shall use the systems approach to training as the orientating theory. Systems theory was originally proposed by Hungarian Biologist Ludwiig von Bertalanffy in 2016. The system approach was first developed in the biological and social engineering sciences before it was adopted by social scientist in explaining social and organizational phenomena. David Easton (2002) utilized the approach in his System Analysis of Political Life . Daniel Katz and Robert Khan (1966) also used the open system approach in studying The Social Psychology of Organizations. G.O. Nwankwo (1988:209) also adopted the systems approach in his book “Education and Training for Public Management in Nigeria” (Quoted in Onah F.O. 2008:141).

The theory can also be traceable to other scholars such as Wendell French (1978), Edastoad (1981) among others.

The central messages of the systems theory can be summarized as follows;

1. A system can be perceived as a whole with its parts and their interdependent relationships.

2. A system has its boundary and can be viewed in terms of its relationship with other systems.

3. Systems have sub-systems and are also a part of a supra system.

4. A system can be regarded as either open or close. According to Koontz et al (1980:111) a system is regarded as open if it exchanges information, energy, or materials with its environment a happens with biological or social system; it is regarded as closed if it does not have such interaction with the environment.

5. A system interacts with its environment in terms of process that involves input, conversion, and output of energy, information and materials. A system tends to re-energize or modify itself through the process of information feedback from the environment.

6. In order to survive, an open system moves to arrest the entopic process by importing expended. As Katz and Khan (1966) further explain, “the entropy process is a universal law of nature in which all forms of organization move towards disorganization or death”. Onah (2008:141). System theory as it affects organizations can be simply illustrated thus:

• Organizational Environment
• Feedback Mechanism
• Inputs Outputs Conversion process

Source: Asogwa (2000:8) This literature perceives an organization as an open system consisting of interdependent parts that are in continuous interaction with the environment.

From this interaction, organizations draw inputs in the form of people, raw materials, money and information. These are transformed into outputs which are exported back to the environment. This interaction with the environment is therefore necessary for organizational survival. The researcher adopted this approach because problems such as training are considered not only in terms of training objectives per say, but also in terms of the objectives and goals of the total organization or “system” in which the individual will be performing his task. This implies that the researcher is also concerned with the objectives of the total system, rather than objective of any component within the system. The system approach to the study of organizations focuses on the system as a whole, the environment of the system, the interdependent relationships between parts of the system, and the dependency for the system to strive for survival by negotiating with environment.

In this approach, the development of training programmes is linked to the development of a weapon system. The behavior which men must exhibit on the job becomes the objectives which must be achieved by the training system. The job of the training designer then is to select the sequence of a series of learning experiences which will produce the desired behavior, for the effectiveness of the entire system. A testing (evaluation) phase required to assure that the training programmes designed succeeds in producing men capable of performing as specified. The system theory emphasizes that an organization which functions as a whole and thereby comprising other sub-systems which function jointly to achieve the raison desire of the organization. It conceives an organization to be functional when all the sub-systems are also effective and efficient. Its justification is in the functional inter relatedness of parts that enthrones the criterion of efficiency which is seen as an imperative for organizational survival and goals achievement.

David Easton (1965) propounded this theory to justify his definition of politics as the authoritative allocation of values. For him, the political system is a set of human interactive through which values are allocated authoritatively.

The theory’s primary aim is to show interdependence of a system in such a way that any dysfunction in one of the parts affects the whole. The political system was seen essentially as a system of converting inputs into authoritative decision. To arrive at authoritative decision, the system takes input, demand and support. Demands are claims on how values are allocated. Support according to him exists when the environment backs up the system or is favorably disposed to it.

Output emerges from the system in the form of authoritative decision and there is a process of feedback. Feedback is a process through which the system adopts its self to the environment by modifying its behavior and changing its interest structure. All these interactions culminate the system maintaining itself in equilibrium.

The feedback mechanism will be taken to mean the method through which the worker or employees express their satisfaction or disenchantment with output produced. All these interactions culminate in the system maintaining itself in equilibrium.

Koontz et al (1980:23) states that the advantage of approaching any area of inquiry or any problem as a system is that it enables us to see the critical variables and constraints and their interaction with one another. It forces scholars and practitioners in the field to be constantly aware that one single element, phenomenon or problem should not be treated without regard to its interacting consequences with other elements.

Wandell French (1978:43) defines personnel functions, using the systems theory approach as an operational process and a facilitating system within the organization. His model brings to light the interdependence of the various Human Resources Management processes in organization, with Human Resources Management being presented as “the diagnosis of planning and co-ordination, controlling of a network or organization- wide process and facilitating systems pertaining to leadership, performance appraisal, workering, training and development, compensation and reward, collective bargaining and organization development”.

McGehee and Thayer (1961) in explaining further the inter-relationship between the sub-systems within the whole system that is responsible for the realization of the organizational goal, based their definition on the theory that training is a sub-system within the total system of the organization’s management. They saw training as the formal procedure which an organization uses to facilitate employees learning so that their resultant behavior contributes

to the attainment of the organization and individual goals and objectives (Onah, 2008:135).

This model views training as a process involving “a complex amalgamation of many sub-processes” aimed at increasing the capability of individuals and groups to contribute to organizational goal attainment. It is a model whose theoretical assumption establishes that worker training and development are inseparable aspects of personnel process, and for the process to be complete, sub-systems’ contributions have to be aggregated to form the whole output and satisfaction. Basically, organization is a system because it is an organized body hierarchically structured to achieve her objectives. A living and dynamic organization comprises of junior and senior worker personnel and both professional and administrative strata. The two bodies, junior and senior exchange services among themselves in a like manner to that produced by locomotive engine. Each of them performing a distinct job designated for him. Therefore, none of the worker is unimportant if efficiency will be attained and for proper maximization of efforts towards efficiency and productivity in Lagos FM , Ilara-Mokin. The trends in new technologies demand that employees should be well trained and developed.

Findings have shown that the system which is the organization becomes ill when employees are not trained and developed towards the goals and objectives of the organization. An untrained and poor developed manpower are liabilities to the system. Finally, the system theory has unraveled the importance of functional inter relatedness of parts which we have identified manpower training and development as sub-parts of the entire system.

2.6 EMPIRICAL REVIEW

Training-related changes should result in improved job performance and other positive changes (e.g., acquisition of new skills; Hill& Lent 2006, Satterfield & Hughes 2007) that serve as antecedents of job performance (Kraiger 2002). Reassuringly, Arthur et al.(2003) conducted a meta-analysis of 1152 effect sizes from 165 sources and ascertained that in comparison with no-training or pre-training states, training had an overall positive effect on job-related behaviors or performance (mean effect size ord=0.62). However, although differences in terms of effect sizes were not large, the effectiveness of training varied depending on the training delivery method and the skill or task being trained. For example, the most effective training programs were those including both cognitive and interpersonal skills, followed by those including psychomotor skills or tasks.

Benefits of training are also documented for technical skills. For example, Davis & Yi (2004) conducted two experiments with nearly 300participants using behavior-modeling training and were able to improve computer skills substantially. Although behavior-modeling training has a rich history of success (e.g., Decker et al., 1990), a unique aspect of this research was that training was found to affect changes in worker skills through a change in trainees’ knowledge structures or mental models.

Specifically, mentally rehearsing tasks allowed trainees to increase declarative knowledge and task performance, each measured 10 days after the training was completed.

More recently, results showed that salespeople who participated in the training program demonstrated higher self-efficacy, outcome expectancy (e.g., “I will increase my sense of accomplishment”),and objective outcomes (e.g., number of new policies sold) as well as subjective job performance (i.e., sales managers’ ratings of each sales person’s performance). Training-related performance improvement was sustained over 12-month period after training ended.

There are also documented benefits of training for managers and leaders. Collins & Holton (2004) conducted a meta-analysis of the benefits of managerial leadership development programs including 83 studies published between1982 and 2001 (see also Cullen & Turnbull2005). They found that means (comparing training with no training) ranged from 0.96to 1.37 for knowledge outcomes and from0.35 to 1.01 for expertise/behavioral outcomes.

Knowledge was defined as principles, facts, attitudes, and skills measured using both subjective (e.g., self-reports) and objective (e.g., standardized tests) measures. Expertise/behavioral outcomes were defined as changes in on-the-job behavior and were also assessed using both subjective (e.g., peer ratings) and objective (e.g., behavioral) measures.