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The Value of Training and Development on Employees' Performance in

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EPRA International Journal of Research and Development (IJRD)

THE VALUE OF TRAINING AND DEVELOPMENT ON

EMPLOYEES’ PERFORMANCE IN ORGANIZED
RETAIL

Dr. Kakumanu Kiran Kumar1

1Lecturer, Government Junior College for Girls, Chirala, Andhra Pradesh, India.

Dr. Chandra Sekhar Patro2

2Assistant Professor, Department of Management Studies, G V P College of Engineering
(A), Visakhapatnam, Andhra Pradesh, India.

ABSTRACT
Training and Development plays a vital role in the attainment of organizational goals by integrating the interests
of the organization and workforce. In the present conditions, training is the most essential factor in the business
world as it increases the competence and effectiveness of both employees and the organization. In a rapidly
changing society, employee training and development are not only an activity that is desirable but also an activity
that an organization must commit resources to if it is to maintain a viable and a conversant work force. Training
and development is beneficial to employees in particular and the organization in general. The study examines the
effectiveness of training and development on employees’ performance in organized retail sector. The results of the
study reveal that a strong relationship exists between the employees’ perception on training & development and
employees’ performance & satisfaction. However, the management should not relent in their quest to train their
staff to develop new ideas that will keep improving and retaining employee performance.
KEYWORDS: Employees, Organization, Performance, Retail, Satisfaction, Training & Development

I. INTRODUCTION training and development efforts (Patro, 2013).

Human Resource Management is concerned As the job become more complex, the
with human beings, which are the energetic elements importance of employee development also increases.
of management. The success of the organization or In a rapidly changing society, employee training and
enterprise will depend upon the ability, strength and development or not only an activity that is desirable
motivation of persons working in it. Human but also an activity that an organization must commit
resources are the most important assets of an resources to if it is to maintain viable and
organization. It ensures sufficient supply, proper knowledgeable work force. Training is a learning
quantity, and as well as effective utilization of experience in that it seeks is a relatively permanent
human resources. In case sufficient number of change in an individual that will important his/her
persons is not available in the organization then ability to perform on the job. It is said that training
external sources are also identified for employed can involve the changing of the skills, knowledge,
them. Human resource management lays emphasis attribute or social behavior. It is application of
on better working condition and also ensures the knowledge and gives people an awareness of the
employment of proper work force. Every rules and procedures to guide their behavior. It
organization needs to have well trained and attempts to improve their performance on the current
experienced people to perform the activities that job or prepare them for an intended job.
have to be done. It is necessary to raise the skill Development is a related process covers not only
levels and increase the versatility and adaptability of those activities, which improve job performance, but
employees. Inadequate job performance or or also those, which bring about growth of the
changes resulting out of job redesigning or personality, help individual in the progress towards
technological breakthrough requires some type of maturity and actualization of their potential

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capacities, so that became not only good employees number of factors are driving India’s retail market.
but better men or women. These include increase in the young working
Training is an essential part of the orientation population, hefty pay-packets, nuclear families in
program for new recruits in an organization every urban areas; increasing working-women population,
organization irrespective of its size or nature of increase in disposable income and customer
operations needs to provide training to its employees aspiration, increase in expenditure for luxury items,
at various stages of their career. Training improves and low share of organized retailing. India’s retail
employee performance and reduces the gap between boom is manifested in sprawling shopping centers,
the actual and expected performance. It updates multiplex-malls and huge complexes that offer
employee skills to enable them to integrate the shopping, entertainment and food all under one roof.
technological changes successfully into III. REVIEW OF LITERATURE
organizational systems and processes. Management Human resource is the backbone of every
development is another important function of HRD organization and it is also the main resource of the
(Patro, 2018). Management development is a organization. So, organizations invest huge amount
systematic process of growth and development by on the human resource capital because the
which employees develop their skill and abilities to performance of human resource will ultimately
manage. It is future oriented and is concerned with increase the performance of the organization (Ahmad
the education of the employees. Management et al., 2013). Performance is a major
development is designed to meet specific objectives. multidimensional construct aimed to achieve results
II. RETAILING IN INDIA and has a strong link to strategic goals of an
Retailing is the set of business activities that organization. Mehrdad et al. (2009) explored that the
add value the products and services to the consumer need for qualified and trainable employee is
needs by having the right merchandise at the right recognized as an important factor to compete in the
place when the consumer wants it. Retailing involves global market. It is very necessary for a trainer to
selling products and services directly to the end engage its audience during the training session
consumers for personal, non-business use. The retail (Seamen and Eves, 2005). It is good for organization
industry is widely split into organized and to give their employees on the job training so that
unorganized sector. Unorganized retail sector their employees learnt in a practical way (Baum and
basically includes the local Kirana’s hand car, the Devine, 2007). It is necessary for any organization to
vendors on the pavement etc. This sector constitutes give its employees training to get overall goals of the
about 98 per cent of the total retail trade. As 70 per organization in a better way (Houger, 2006).
cent of the employment is generated in Agriculture Training and development increase the overall
sector, hence this form of retailing is widely seen in performance of the organization (Jon and Greene,
those areas and of course to some parts of the urban. 2003). Although it is costly to give training to the
Organized retail sector emerged after 50 years of employees but in the long run it give back more than
unorganized retailing and fragmented Kirana Stores, it took. Every organization should develop its
the Indian retail industry has finally begun to move employees according to the need of that time so that
towards modernization, Systematization and they could compete with their competitors (Falola et
consolidation. Presently it occupied 4-5 per cent of al. 2014).
retail sector. Ramakrishna et al. (2012) study revealed
Retail is India’s largest industry. It accounts that the employees have attended more training and
for over 10 per cent of the India’s GDP and around development programmes, employees strongly
eight percent of the employment. Retail sector is one agreed about the necessity of training and
of India’s fastest growing sectors with a 5 per cent development programmes, majority of the employees
compounded annual growth rate. Today, the retail rated trainer’s preparation as good, employees rated
sector in India is huge, close to USD 200 billion, of trainers creating learning atmosphere and employees
which organized retail accounts for just USD 6 given overall rating for training and development
billion. Organized retail in India is expected to grow programmes. Srimannarayana (2011) study identified
at 40 per cent for the next five years. The organized that majority of respondents believed that
retail industry in India had not evolved till the early performance improvements made because of training
1990s. Until then, the industry was dominated by the is an extremely valuable measure and transfer of
un-organized sector which was a seller’s market, learning is extremely important. Also found that the
with a limited number of brands, and little choice feedback of the participants is collected after
available to customers, lack of trained manpower, tax completion of the training programme routinely.
laws and government regulations. There is a gap between the measures that that are
India retail industry is expanding itself most used actually in assessing training and development
aggressively; as a result a great demand for real and HR/Training professionals do not have control
estate is being created. Indian retailers preferred over data that is required for measuring training and
means of expansion is to expand to other regions and development. Jadhav (2013) analyzed the
to increase the number of their outlets in a city. A effectiveness of training and development

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programmes for employees to discharge their duties resource tool in enhancing the performance of the
and achieve customer satisfaction. The study found employees and overall development of the
that private and public Indian banks undertake organization.
training and development programmes for their IV. SIGNIFICANCE OF THE STUDY
employees to increase their efficiency. Banks Training becomes inevitable the moment an
provide training programmes to enhance their organization realizes the need for improvement and
knowledge and skills to satisfy the customers. expansion in the job. But often times, organizations
Growth of banking sector in India is the result of embark on job enlargement and enrichment to
skilled manpower which is the outcome of training promote employees' morale, motivation and
and development (Rani and Garg, 2014). Sthapit satisfaction when in the fact the real problem with
(2012) study analyzed the strategic human resource work performance lies in capacity development. In
development factors affecting the evaluation of order to meet the global competition, it is
induction training effectiveness in Nepali banks. The everybody’s concern to think and act in order to
study revealed that induction training as most maintain quality. Training and development is an
effective in terms of learning and least effective on important function of any organization in order to
the behavior change criterion. maintain skilled workforce in the organization.
Nagar (2009) analyzed the effectiveness of Through training any person can develop to a great
training programmes being conducted by the extent his skill in work, his general outlook, his
commercial banks in public as well as in the private attitude to work, a sense of commitment and so on.
sector. The focus of the study is mainly the opinions To accomplish that, the training and
of the trainees regarding various aspects of training development to personnel in every organization is
like course duration, library facilities, trainer, most important and has to be a continuous effort for
teaching & computer aided programme and other achieving the targets in the organization (Patro,
infrastructural facilities. The study revealed that 2016). Hence, there is a great need to study training
there is no significant difference in the opinion of and development in organized retail super markets.
respondent at the two staff training centers. Purohit The study will help the management to identify the
(2012) assessed the satisfaction level of employees challenges effects of employees’ training on
about HRD practices particularly Training and organizational performance, hence determine the
development & Reward and recognition of areas where improvements through training can be
employees. The study revealed that training helps done. It will also help the management in planning
employees to gain better understanding in the area of for the development and implementation of effective
job and this will enhance their stock of knowledge. and efficient training needs that will lead to
Extensive training providing the continuous increased performance of the retail super markets.
development, such as on-the-job training V. OBJECTIVE OF THE STUDY
programmes and workshops can be a driving factor The main objective of the study is to
for the activities in the firm. Rani and Garg (2014) analyze the perceptions of respondents on the value
examined the effectiveness of training and of training and development in organized retail super
development programmes for employees in markets.
fulfillment of their duties. The findings of the study VI. RESEARCH HYPOTHESES AND
suggest that training and development is inevitable METHODOLOGY
and unavoidable in any sector. The study formulated the following null and
Tahir et al. (2014) investigated whether alternative hypothesis to test relation between the
training and development has impact on employees’ employees’ perception on training and development
performance and productivity. The result of the study programmes and employees satisfaction on training
revealed that there was a positive impact and and development programmes.
significant relationship between the variables H0: There is no significant relationship between
Training and Development and Employees employees’ perception on training and development
Performance and Productivity. Patro et al. (2013) programmes and employees’ performance and
evaluated the practical implementation of training satisfaction.
techniques undertaken by employees in their work HA: There is a significant relationship between
environment to improve their working skills. The employees’ perception on training and development
various methods, technologies and media used were programmes and employees’ performance and
encouraging to the employees to learn. Employees satisfaction.
are helped to upgrade their technical knowledge and For the purpose of the study, the data is
skills through training. Induction training program is collected through both primary and secondary
given more importance; it is a well-planned exercise sources. The secondary data was collected from the
and is of sufficient duration. Employees are satisfied books, journals, news papers and other sources. The
by the knowledge attained through training programs primary data consists of original information
(Katou and Budhwar, 2006). Thus, training and gathered for specific purpose. The required
development has become the most essential human information was collected using personnel

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interviewing technique through the structured markets, the statistical techniques frequencies, mean,
questionnaire distributed to the employees of and ANOVA analysis are used.
organized retail super markets in Visakhapatnam VII. STATISTICAL DATA ANALYSIS
city, Andhra Pradesh. A simple random sampling The value of training and development on
method was used and a sample size of valid 180 the employees’ performance is assessed. For the
responses is considered for the study. Five point purpose the respondents opinion on training and
likert scale (5-Strongly Agreed, 4-Agree, 3- development activities, the respondents perception
Undecided, 2-Strongly Disagree, 1-Disagree) that on training & development programmes and
best describes the extent to which the respondents employees satisfaction on training and development
agree with each items in the questionnaire was used. programmes. The statistical analysis is presented in
To analyze value of training and development on the tables and interpreted wherever necessary.
employees’ performance in the organized retail

Table-1: Respondents Opinion on Training and Development Activities (n=180)

Particulars Frequency Percentage
Basic needs of Training & Development
For Advancement & Technology 95 53%
To produce quality products 25 14%
To decrease wastage 5 3%
For new employees 55 31%
Methods employed to identify the Training & Development needs
Interview 10 6%
Questionnaires 30 17%
Direct observation 50 28%
Performance Appraisals 90 50%
Present Areas of Training & Development programs
Safety Training 110 61%
Basic & core skills training 10 6%
Technical Training 36 20%
Personality Development 24 13%
Training method is used in organization
On the Job training 38 21%
Off the job training 98 54%
Both 44 24%
Method used during Off-the-job training program
Demonstration 53 29%
Seminar 38 21%
Case studies 20 11%
Lecture 69 38%
Skills important for Professional development
Presentation Skills 141 78%
Negotiation skills 18 10%
Communication skills 13 7%
Project Management 8 4%
Training area important to professional development
Safety Skills 29 16%
Presentation skills 61 34%
Time management skills 32 18%
Technical skills 58 32%
Source: Primary Data

The Table-1 shows the respondents opinion Advancement & technology, 55 percent of
towards training and development activities. Out of respondents reacted that Training & Development is
the total, 95 percent of the respondents reacted that for new employees, 25 percent on produce quality
the basic needs of Training & Development is for products and only 5 percent on decrease wastage.

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Regarding the methods employed to identify the percent responded that on the job training is used in
training & development needs, 50 percent the organisations.
respondents said that performance appraisal method The mostly used method during Off-the-job
is followed to identify the Training & Development training program is lecture method with 38 percent.
needs, 28 percent % of respondents said direct The respondent with 29 percent represented that
observation method, 17 percent respondents are said demonstration method, 21 percent said seminar
Questionnaire method and only 6 percent viewed that method and 11 percent represented case study
Interview method is followed to identify the Training method. As opined by the respondents, the skills
& Development needs. In the case of present areas of important for professional development are
training & development programs, 61 percent of presentation skills with 78 percent, followed by
respondents think safety training area is the key area negotiation skills (10 percent), communication skills
of Training & Development, 20 percent think (7 percent) and project management (4 percent). As
technical training, 13 percent think personality many as 34 percent of the respondents revealed that
development and only 6 percent think basic & core presentation skills area important to professional
skills training is the key area of Training & development, 32 percent said technical skills are
Development at present. Majority of the respondents important, 18 percent revealed time management
representing 54 percent are under opinion that the off skills are important and 16 percent revealed safety
the job training method is used in organization, 24 skills are important to professional development
percent responded that both are used, while 21
.

Table-2: Perception on Training & Development Programmes

Sl.No. Parameters Mean (µ)
1 Training needs and programmes are well planned by the company 3.88
Norms and values of the organization are clearly explained to
2 3.91
employees
3 Induction training is given adequate importance 4.14
4 Training programmes are periodically reviewed and improved 3.96
5 Increases the technical skills and knowledge of employees 4.12
6 Enhance the efficiency of the work being performed by employees 4.23
7 Improve the leadership and managerial skills 3.83
8 Boost up the morale and brings positive attitude in the employees 4.03
9 Reduces the stress of the employees 3.89
10 Enhances the productivity of the organization 4.09
Total 4.01
Source: Primary Data

The employees’ perception on training & The parameters ‘Training programmes are
development programmes is assessed and presented periodically reviewed and improved (µ=3.96)’,
in the Table-2. The analysis reveals that the overall ‘Norms and values of the organization are clearly
mean value regarding the respondent perception explained to employees (µ=3.91)’, ‘Reduces the
show a positive rating with a mean value of 4.01. The stress of the employees (µ=3.89)’, and ‘Training
parameters ‘Enhance the efficiency of the work being needs and programmes are well planned by the
performed by employees’ secured highest raring with company (µ=3.88)’ are perceived as the significant
a mean value of 4.23 followed by ‘Induction training factors of training and development. The lowest rated
is given adequate importance (µ=4.14) and ‘Increases variable is ‘Improve the leadership and managerial
the technical skills and knowledge of employees skills (µ=3.83)’ by the respondents. It is relatable to
(µ=4.12). The variables ‘Enhances the productivity note that all the referred parameters of training and
of the organization (µ=4.09)’, ‘Boost up the morale development programmes practiced in the retail super
and brings positive attitude in the employees markets show significant positive influence on the
(µ=4.03)’ also secured significant rating by the perception of the employees
respondents.
.

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Table-3: Employees Satisfaction on Training & Development Programmes

Sl.No. Parameters Mean (µ)
1 Duration of the training programs 3.56
2 Quality of Orientation and Training received 3.83
3 Management support for improvement 3.64
4 Training evaluation procedure 3.13
5 Career Advancement opportunities 3.66
6 Professional learning & growth opportunities 3.57
Total 3.57
Source: Primary Data

The Table-3 shows the employees level of the respondents towards training and
satisfaction level on the training and development development programmes is above 3.5.
programmes practiced in the retail super markets. It VIII. RESULTS AND DISCUSSION
can be observed that the respondents are highly In the modern and complex business
satisfied with the quality of orientation and training environment, employee training and development
received (µ=3.83). The second and third highly is one of the reliable sources of competitive
rated parameters are career advancement advantage to compete with the changing and
opportunities (µ=3.66) and management support competitive business world. Training and
for improvement (µ=3.64). The parameters development is beneficial to employees in
professional learning & growth opportunities particular and the organization in general. The
(µ=3.57) and duration of the training programs results of the value of training and development on
(µ=3.56) also got positive ratings by the employees’ performance in organized retail
respondents. The least satisfied variable is Training markets are discussed.
evaluation procedure with a mean value of 3.13. It
is significant to note that the overall satisfaction

Table-4: Model Summary

Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .206a .042 .035 .61335
a. Predictors: (Constant), Perception on Training & Development

The model summary (Table-4) shows that Square (0.042) shows that the independent variable
the linear regression coefficient (R=0.206) indicates (Perception on Training & Development) can predict
that there is a low correlation between the dependent only a little over 4 per cent of the variance in the
and independent variables. In terms of variability R- Employees Satisfaction on Training & Development.

Table-5: ANOVAa
Sum of Mean
Model Squares df Square F Sig.
Regression 8.235 4 2.059 5.472 .000b
Residual 186.216 495 .376
Total 194.451 499
a. Dependent Variable: Employees Satisfaction on Training & Development
b. Predictors: (Constant), Perception on Training & Development

The results of the ANOVA test (Table-5) p=0.000<0.001) show a significant relation with the
indicates that the dependent variable Employees independent variable Perception on Training &
Satisfaction on Training & Development (F=5.472, Development.

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Table-6: Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta t Sig.
(Constant) 4.331 .142 30.536 .000
Perception on
Training & .042 .023 .080 1.796 .003
Development
a. Dependent Variable: Employees Satisfaction on Training & Development

The calculation of coefficients is shown in make employees learn more seriously from training.
Table-6. The analysis reveals that the independent It would be better if the organization concentrates on
variable Perception on Training & Development (β= development of the employees by conducting and
0.080, t=1.796; p=0.003) shows positive significant designing more of the developmental programmes.
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