IMPACT OF TRAINING (SKILL

DEVELOPMENT) ON EMPLOYEE
PERFORMANCE OF COMMERCIAL BANK

BY

Dristy Bista
T.U Reg. No 7-2-55-22-2018 Exam
Roll No 21451/18

A summer project submitted to

Faculty of Management, Tribhuvan University
In partial fulfillment of the requirement for the degree of
Bachelor of Business Administration

at the
Mahendra Multiple Campus
Tribhuvan University

Nepalgunj
February/ 2023
 ii

STUDENT'S DECLARATION

This is to certify that I have completed the Summer Project entitled “Impact of Training
on Employee Performance of Commercial Bank” under the guidance of “Associate
Professor Mr. Shreebas Adhikari” in partial fulfillment of the requirements for the
degree of Bachelor of Business Administration at the Faculty of Management, Tribhuvan
University. This is my original work and I have not submitted it earlier elsewhere.

Date: 12th February 2023 Signature:

Name: Dristy Bista

CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Impact of Training (Skill
 iii
Development) on Employee Performance of Commercial Banks” is an academic work done by Dristy Bista
submitted in the partial fulfillment of the requirements for the
degree of Bachelor of Business Administration at Faculty of Management, Tribhuvan
University under my guidance and supervision. To the best of my knowledge, the information presented by her
in the summer project report has not been submitted earlier.

..........................
Signature of the supervisor

Name: Shreebas Adhikari

Date: 12th February 2023

ACKNOWLEDGEMENT

I would like to express my heartiest gratitude to all the personalities who have helped me
to prepare summer project. In this project, we could make use of our theoretical knowledge into practical
knowledge. So, I would also like to thank Tribhuvan University for including summer
projects in our curriculum. I would like to extend sincere gratitude
 iv
to our supervisor for the summer project, Associate Professor Mr. Shreebas Adhikari. His guidelines were
very helpful from the start to complete the report. Also, I am greatly obliged to my college, Mahendara
Multiple Campus, Director Lal Mani Pokherel for being so supportive and cooperative.

I am truly grateful to Santosh Gurung, Subhash Subedi, and Sandeep Gautam, from Sanima Bank Ltd,
Machhapuchhre Bank, respectively and to all those respondents who cooperated with me and answered all the
questions in the questionnaires.

Lastly, I would like to thank my friend Samjhana KC and other friends for helping me whenever necessary.

Regards,

Dristy Bista
BBA 7th semester
Date: 12th February 2023

ABBREVIATIONS

T&D Training and Development

ADBL Agriculture Development Bank Limited
NBL Nepal Bank Limited
RBBL Rastriya Banijya Bank
GIME Global IME Bank Limited
NABIL Nabil Bank Limited
CBL Civil Bank Limited
NIC ABL NIC Asia Bank Limited
SBI State Bank of India
SBL Sunrise Bank Limited
NIMB Nepal Investment Mega Bank
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B- wise T&D Branch wise training and development
D- wise T&D Department wise training and development

TABLE OF CONTENTS
STUDENT'S DECLARATION ii
CERTIFICATE FROM THE SUPERVISOR iii
ACKNOWLEDGEMENT iv
ABBREVIATIONS v
TABLE OF CONTENTS vi
LIST OF TABLE vii
LIST OF FIGURE viii
CHAPTER I 1
INTRODUCTION 1
1.1 Context Information 1
1.3 Significance of the study 4
1.4 Literature Survey 4
1.5 Research Methodology 8
1.5.1 Research design 8
1.5.3 Population 9
1.5.4 Sampling 9
1.5.5 Data collection Instrument 9
 vi
1.5.6 Data Analysis tools 10
CHAPTER II 12
DATA PRESENTATION AND ANALYSIS 12
2.3 Data analysis 27
2.4 SWOT analysis 31
2.5 Findings and discussion 32
Chapter III 33
CONCLUSION AND ACTION 33
3.1 Conclusion 33
3.2 Implications 34
REFERENCES 36
APPENDICES 38

LIST OF TABLE
Table 1 Age of the respondents …..……………………………………………………..15
Table 2 Gender of Respondent ……..…………………………………………………...16
Table 3 Educational Background of Respondents ……..………………………………..17
Table 4 Name of the workplace of Respondent ………...……………………………….18
Table 5 Respondents working experience in Bank ………..…………………………….19
Table 6 Likelihood of bank to organize training….……………………………………..21
Table 7 Frequency of training organized by bank in a year …………………..………...22
Table 8 Respondents participation in training…… ……….…………………………….23
Table 9 Types of training…….…………….……………………….……………………24
Table 10 Most organized training ……………………………………………………….25
Table 11 Assessment of training ……….………………………………………………..27
Table 12 Assessment of the relationship between training and employee
performance ……………………………………………………………………..29
Table 13 Descriptive Analysis for assessment of training ……...……………………….31
Table 14 Descriptive Analysis for assessment of the relationship between training and
 vi
i
employee performance …………………………………………………...…...33

LIST OF FIGURE
Figure 1 Theoretical Framework …..…………………………………………………......8
Figure 2 Age of the respondents …..…………………………………………………….12
Figure 3 Gender of Respondent ……..………………………………………………......16
Figure 4 Educational Backgrounds of Respondents …..…………………...……………17
Figure 5 Name of workplace ace of Respondent……..………………………………….19
Figure 6 Respondents working experience in Bank ……..……………………………...20
Figure 7 Likelihood of bank to organize training ……..………………………………...21
Figure 8 Frequency of training organized by bank in a year …..………………………..22
Figure 9 Respondents participation in training ………….………………………………24
Figure 10 Types of training ……………………………………………………………...25
Figure 11 Most organized training ………………………………………………………26
Figure 12 Assessment of training ……………………………………………………….28
Figure 13 Assessment of the relationship between training and
employee performance …………………………………………………………..29
 1

CHAPTER I

INTRODUCTION

1.1 Context Information

The bank is a financial institution that lends money, accepts deposits, and
performs various other financial services. It collects money from the surplus unit to lend
to the deficit unit. It serves the financial service needs in the economy. According to the
Bank and Financial Act, 2073(2017), Bank or Financial institute means banking and
financial transactions to be carried out by a bank or financial institution by obtaining a
license under this act.
Commercial banks are those banks, which pool together the scattered savings of
the community, arrange for their productive use and generate profit. They accept deposits
from the public and use the money to help the community by making loans to individuals,
organizations, governments, and businesses. Commercial banks acquire funds from one
group of surplus spending units and make these funds available to other deficit units
facilitating the effective mobilization of resources, which in turn leads to sound economic
growth of the country. The main aim of a commercial bank is to earn a profit like any
other business entity. It lends a certain percentage of the cash lying in deposits at a higher
interest rate than if it pays on such deposits. The difference of interest on deposits
received and loans advanced are the main source of its income. Thus, commercial banks
are merely business firms engaged in financial intermediation as well as perform
additional functions under strict supervision and control of the central bank.
Commercial Banks perform an array of functions. They are established to accept
deposits and grant loans to industries, individuals, and traders to earn profit. Apart from
financing,

they also render services like collection of bills and cheques, safekeeping of valuables,
financial advising, etc. to their customers. Their primary function is to accept deposits
and advance loans. Whereas, secondary functions performed by them are agency
function, utility function, credit creation, investment of funds, and so on. Commercial
 2

banks play a huge role in the economy. It isn't possible to fulfill banking functions by a
single person. So, they need to recruit staff who are willing to contribute to employee
performance is how an employee of an organization fulfills their duties, assigned tasks,
and behaves in the workplace (Anonymous, n.d.).
It refers to how efficiently and effectively an employee has completed his or her task.
Their performance plays an immense role in making the bank successful or failure. One
bad performance can cost the whole bank in terms of cost and time. All the employees are
expected to work in the best interest of the bank. Assigning employees to respective
designation doesn't guarantee achievement of banking objectives. They need to be aware
of their roles and responsibilities, knowledge about their job, and the organization's
culture. They need to be prepared for additional responsibilities and to cope with
changing needs of knowledge and skills. So, banks employ various training and
development programs to make their employees valuable assets.
Training and development refer to enhancing employees’ knowledge and skills by
providing instruction on how to better perform specific tasks. It is an educational activity.
Training is organized for daily operation and processes while development is designed as
a continuous proactive process meant for executives. Training is organized to develop
additional skills of employees whereas development is to develop a total personality
(Anonymous, 2017).
Training and development are organized to improve employee performance and
cope with continuous change in technology and skill required for smooth functioning of
the bank. According to Drawinbox, Training and development refers to educational
activities within a company created to enhance the knowledge and skills of employees
while providing information and instruction on how to better perform specific tasks. It not
only enhances one's skill but also brings whole new confidence to complete the assigned
task (Anonymous, n.d. ).

Training provides a good opportunity for employees to grow their knowledge

base, improve their job skills and become more effective in the workplace. The training
cost is quite high but the return on investment is worth it.
In the banking sector, both on the job and off the job training is provided. Various
training is employed in the direction of improving employee performance. On the job,
training takes place while performing daily activities on the job. It is learning by doing in
 3

the context of a real work environment. Employees learn by actually doing the job.
Whereas, off the job training takes place outside of the work setting. They focus on
learning. Training time is less than on the job. Employees are removed from the demand
and pressure of the workplace. Some of the common training organized by banks are
simulation, coaching, planned work assignments, seminar, case study, and so on. Both on-
the-job and off-the-job training, have significant relationships with employee
performance.

1.2 Purpose of the study

With new technology, access to information all around the world, there is the emergence of new ways of doing
activities. Banking organizations can't sustain in the market without adopting new technology and new
techniques of carrying activities. When bank adapts new technology, employee can’t perform well. So, before
adopting changes,
commercial banks need to organize necessary training because employees’ abilities can be improved through
training and development. It assists employees to possess the required abilities.
With training, we can bring both direct and indirect changes in employee performance. It plays great
importance in shaping the employee’s personality and potential. For that, we need to know what kind of
training are effective and are required to build the workforce as required by the organization. So, the main
purpose of the study
is to know the impact of training and development on employee performance of commercial banks. The study
also seeks:-
1. To identify existing training programs in the commercial bank under the study in
Kohalpur city.
2. To understand the relationship between training and employee performance

1.3 Significance of the study

The study is conducted to understand the impact of training on the employee
performance of commercial banks. The findings of this study will benefit the Banking
sector of Nepal as trainings are the most important factors to bring the best out of their
employees. Employees are the asset of the organization but if the same employee doesn't
perform well they are liabilities. So, all service sectors like banks continuously try to hire
competent employees and develop their skill set. The study assesses the actual current
 4

position of employee training and development and its impacts on employee performance
in Nepalese commercial banks. It provides information on the frequency of training banks
are organizing, various types of training being organized, factors considered while
planning and executing training. And also helps to determine the impact of training on
employee performance.
The study will provide insights on understanding the training needs of their
employees and design training to sharpen employee skills and achieve bank objectives.
The HR department will be guided on evaluating the effectiveness of ongoing training on
employee performance, organizing the right training programs, and knowing current
trends of training. For the researcher, the study will help them uncover critical areas in the
training need analysis and implementation process for banking and to develop new
insights in this subject.
The conclusion of the study will address the importance of employee training and
development in commercial banks and their performance in this competitive marketplace.
It will also contain recommendations on increasing training and development programs
for enhancing bank performance. Thus, the result will be useful for the management and
staff of commercial banks and researchers.

1.4 Literature Survey

Literature surveys make us more familiar with our topic. We can know about previous
work, methodology used, problem identified and their solution, research gap and any
more. This subtopic includes conceptual review and review of previous work.

1.4.1 Review of previous work

Every day the banking business is getting more advanced. To keep pace with the
changes, organizations have to modify working mechanisms, equipment, and so on.
Changes would have no meaning if the employee doesn't know how to implement them
effectively. So, if the organization wants to stay in the market it should continuously
upgrade its employees’ skills and knowledge. For this, they can organize training and
development programs. Training and development are no more fancy programs carried
out by an organization but it is a necessity and has been an integral part of any
organization.
 5

In research titled "Training and development in Nepalese commercial banks,

Chalise concluded that training and development were positively related to organizational
performance and employee satisfaction. He also found that training and development
were considered as one of the valuable programs in the organization but they were
organized without considering the kind of training required by employees. The result was
drawn by responses filled by 200 staff of 10 different commercial banks in a structured
questionnaire. Descriptive research design is employed and descriptive analysis is used to
analyze data (Chalise, 2022).
The research on "Human Resource Development Practices: Empirical Evidence
from Nepal Rastra Bank" revealed that there is a positive relationship between employee
performance and training and development. He has employed descriptive as well as
analytical research design. The research design is exploratory primarily. The
questionnaires were designed to collect primary data from 180 employees belonging to
different departments. The questionnaire includes 2 points Likert scale, whose collected
data is calculated in percentage (Gnawali, 2018).
Za, Asriani, Lorensa & Sapturi (2020) find out that, "The influence of training and
development to employee performance". They concluded in their paper that when training
and development are organized, it significantly influences employee performance. The
data for the research was collected via questionnaire, study literature, and observation.
Simple linear regression data was used to analyze the data.
Kumar, & Siddika (2017) investigated on "Benefits of training and development program
on employees performance a study with special reference to banking sector in
Bangladesh". The study's main purpose was to investigate the significance of training and
its advantage for their employees and organization. A sample of 50 employees from
Agrani Bank Limited was taken for the study by employing stratified random sampling.
They were interviewed through a structured questionnaire. The study found that training
and development programs played a significant role in increasing the skill, ability, and
intellectuality of the bank employees.
Tahir & Sajjad (2013) concluded that there are various important aspects of
designing training programs that ensure higher employee productivity by researching on
"Assessing the Impact of Training on Employees Performance in Commercial Banks in
Urban Lahore". Some of the important aspects are proper need assessment, the extent of a
training program's effectiveness, investment by the host organization, and the provision of
 6

training programs. They had conducted a questionnaire-based survey with 75 employees

at various managerial levels in Urban Lahore. Regression analysis was used for data
analysis.
Khan (2012) in his article "The Impact of Training and Motivation on
Performance of Employees" revealed that among various factors influencing employee
performance, training contributes greatly to enhancing employee performance. A sample
of 100 employees was taken from Habib Bank and the Federal Urdu University of Arts
Science and Technology Islamabad. A structured questionnaire was employed as a data
collection instrument. The data are analyzed by reliability statistics, descriptive statistics,
Pearson correlation analysis, regression statistics, and coefficient. SPSS is used for data
assessment.
"The Impact of Training and Development on Employee Performance and
Productivity: An Empirical Study on Private Banks of Noakhali Region in Bangladesh''
was studied by Jeni, Momotaj & Al-Amin in 2021. 60 employees of 5 private banks in the
Noakhali region were selected using stratified sampling. Self-administered questionnaires
were used to collect data. According to the study, when viewed from the perspective of
employees the overall influence of training and development was 3.54(mean) and
0.95(standard deviation) in total showing a positive relationship between T&D and
employee performance. The study disclosed that training not only increases employee
performance but also enhances employee motivation and job satisfaction (Jeni,

Momotaj, & Al-Amin, 2021).

Kandel (2020) in his study named Impact of Training and Development on
Employees Performance in Nepalese Commercial Banks, found a direct relationship
between independent and dependent variables. The dependent variable in his study was
employee performance. Whereas, independent variables were training need assessment,
training contexts, and delivery and training-reward linkage. Among three independent
variables, training-reward linkage had a major effect on employee performance. He had
employed convenience sampling, selecting 250 employees as samples of the study from 5
commercial banks of Nepal (ADBL, NBL, RBBL, GIME, MEGA). Researchers had used
descriptive analysis, correlation analysis, and regression analysis.
The study, "Impact of Training and Development on Employees Performance in
the Banking Sector of Pakistan" was conducted to assess the training and development
practices in the banking sector of Pakistan. It took the perception of 200 employees
 7

belonging to 22 branches of different banks in Multan city by using a 5 point Likert scale.
Researchers found that banks were organizing T&D but it wasn't enough from the
response of managers, operational and non-operational staff. The study concluded that
trainees learned new habits, refined skills, and useful knowledge that helped them to
enhance their performance. The data were analyzed using the Statistical Package for
Social Sciences. Cronbach's Alpha technique is used to check the reliability (Imran &
Tanveer, 2015).

1.4.2 Conceptual Review

The practices of training are intentional practices of the organization. The motive
of such practice is to increase their knowledge base, making them aware of their roles and
responsibilities, improve employee performance and the attitude required for being a
competent workforce. Organization fulfills short-term, immediate needs from training.
And, development is a long term investment in your employee. They are the ways to
improve an employee’s skull in a holistic approach (Tapado, 2018).
Investment made in training and development is the most rewarding investment for an
organization as it ensures success and prosperity of business. Various studies show that
organizations engaged in employee development witnessed upscale in sales and doubled
profits in comparison to organizations not committed to employee engagement. Also,
there is a high retention rate, low absenteeism rate and high productivity when employers
are concerned about employee development (Anonymous, n.d.).
Heraty & Morley (1994) defined that the ability to recognize and prioritize
training and development activities and programs as per the needs of the organization to
maximize benefit remains the underpinning function for developing training and
development of human resource development.

Figure 1
Theoretical Framework

Training and Employee

Development Performance

Input Process Output

 8

1.5 Research Methodology

Research methodology refers to the procedure used to identify, collect, process and
analyze the information for the given research topic. It includes the research design,
population, and samples, sources of data, population, sample, data collection instrument,
data analysis tool. It is a survey-based exploratory cum descriptive study.

1.5.1 Research design

This study applies descriptive research design to acknowledge the impact of

training on employees and their performance in commercial banks in Nepal. This method
focuses on advancing knowledge by collecting data and describing the event. It will focus
on finding facts, collecting adequate information about the influence of training on
employee performance and evaluating the current scenario of training practice.

1.5.2 Sources of data

Primary data has been used for the study and they have been collected from
structured questionnaires. Primary data has been collected by emailing and forwarding
Google form links via social media. The data is collected from a sample of Nepalese eight
commercial banks. The employees within each organization were asked to fill out an
online questionnaire. They were also requested to provide accurate information regarding
training and development on their performance.

1.5.3 Population

There are 22 commercial banks in Nepal. Among them, employees of 8 commercial banks: Nabil Bank
Limited, Civil Bank Limited, Kumari Bank Ltd, Nepal
Investment Mega Bank, Global IME Bank Limited, Nepal SBI Bank, NIC Asia Bank
Ltd, Sunrise Bank Limited have been considered as the population for the research.

1.5.4 Sampling

The study, impact of training and development on employee performance on

commercial banks are evaluated by using convenient and snowball sampling methods. A
 9

sample size of employees is 50, selected from 8 commercial banks (Nabil bank limited,
Kumari Bank Ltd, Civil Bank, Nepal investment bank, Global IME Bank Limited, SBI
Bank Ltd, NIC Asia Bank Ltd, Sunrise Bank Limited). They represent the population of
this study. The accuracy of the conclusion drawn depends upon the authenticity of the
employee's response.

1.5.5 Data collection Instrument

The research uses primary data to study the current practice of training and its
impact on employees of commercial banks. The data collection instrument for the study is
Online Self-Administered Questionnaire. Rank order and Five-point Likert scale
questionnaires were designed. Questionnaires were made in the Google form. They were
forwarded to respondents via social media, emails, and respondents. The respondents
were free to answer the questions according to their experience with training without any
pressure from anyone.

1.5.6 Data Analysis tools

For data analysis descriptive statistics are used. SPSS is used for assessing the
data. The collected data are sorted, managed, arranged, ordered and then analysis and
interpretation of those data are done. These functions are done with the help following
statistical tools in a systematic manner.

1.5.6.1 Descriptive analysis

Descriptive analysis is used to summarize the demographic information of the
respondents. Different graphs, bar-chart, pie- charts are used to present the profile of the
respondent. Mean and standard deviation are used to study the dependent variable called
employee performance and independent variables called training.

1.5.6.1.1 Mean or average

Mean is a measure of central tendency, which is used to calculate the average of

the data set. There are multiple ways to calculate mean but the most popular mean is the
arithmetic mean or average. It is calculated as dividing the sum of all variables by the
number of variables. The mean is the arithmetic average of a variable. Mathematically,
 10

Mean
Where,
∑ = Total sum of frequency
N = Total number of respondent

1.5.6.1.2 Standard deviation

Standard deviation (S.D) is the measure of dispersion. It indicates the ranges and
size of deviance from the mean. Higher the dispersion, the higher will be the standard
deviation. Lower the amount of dispersion, lower will be the standard deviation and vice
versa. Lower standard deviation means a high degree of uniformity of the observation as
well as homogeneity of a series. Mathematically,
( )
) =√
Standard deviation (
Where,
∑ = Sum of frequency
= Mean of frequency
N = Number of respondents

1.5.6.1.3 Pie Chart

Pie chart is a circular statistical graphic, which is divided into slices to illustrate
numerical proportion. In a pie chart, the arc length of each slice is proportional to the
quantity it represents. A pie chart helps organize and show data as a percentage of a
whole.
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CHAPTER II

DATA PRESENTATION AND ANALYSIS

This chapter includes evaluation, analysis, and interpretation of data collected through
questionnaires. The data will be used to measure the impact of training and development
on employee performance. There are five subsections in this chapter. The first part
includes the respondent's profiles. The second section deals with presenting the collected
data with the help of pie charts, bar graphs, etc. The third part is related to the analysis of
data using descriptive analysis. The fourth part is about SWOT analysis of the
organization. The final part is related to the findings and discussion of the data obtained
through analysis from the primary source.

2.1 Respondent profile

In total 50 respondents were selected for this study and the questionnaires were
distributed to them through social media, email, and respondents. All the respondents
were selected through convenience and snowball sampling.

2.1.1 Age of Respondent

The age of the respondents consists of the age category: Below 20 years, 20 - 25
years, 25 - 30 years, 30-35 years, and above 35 year. The frequency and percentage of the
age of respondents are depicted in table 1 and figure 2 below.
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Table 1
Age of the respondents
Age Category Frequency Percentage

Below 20 years 0 0

20 - 25 years 14 28

25 - 30 years 29 58

30 - 35 years 7 14

Above 35 years 0 0

Total 50 100
Source: Field Survey, 2023

Figure 2
Age of the respondents

Table 1 and Figure 2 show the age category among 50 respondents, it is clear that out of
the total respondents there are 28% falling under age category 20-25, 58% of respondents
belongs to 25-30 years category, and the rest 14% belong to 30-35 age categories
 13

2.1.2 Gender of Respondent

The gender of the respondents consists of Male and Female. The frequency and
percentage of gender respondents are depicted in table 2 and figure 3 below.

Table 2
Gender of Respondent
Gender Frequency Percentage

Male 33 66
Female 17 33

Total 50 100
Source: Field Survey, 2023

Figure 3
Gender of Respondent

Table 2 and figure 3 shows the gender of 50 respondents. 34% of the respondents are
female whereas 68% of respondent are male.
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2.1.3 Educational Background of Respondents

The education background of the respondents comprises an educational level of

50 respondents. The education level comprises +2, Graduate, Degree, and Ph.D. The
frequency and percentage of the educational background of respondents are depicted in
table 3 and figure 4 below.

Table 3
Educational Background of Respondents
Education Frequency Percentage

+2 1 2
Graduate 28 56
Degree 21 42

Ph.D 0 0

Total 50 100
Source: Field Survey, 2023

Figure 4
Educational Background of Respondents

Table 3 and Figure 4 show the educational background of the respondents. 58% of
respondents have completed their master’s degree, 42% have completed bachelor, 3%
have completed their +2 and none have completed PhD.
 15

2.1.4 Name of the workplace of Respondent

The workplace of the respondents conveys the name of the bank where the respondent
works. Various banks where our respondents’ work are Nabil Bank Limited, Civil Bank
Ltd(CBL), Kumari bank, Global IME Bank(GIME), NIC Asia, State Bank of India(SBI),
Sunrise Bank Limited(SBL) and Nepal Investment Mega Bank(NIMB). The frequency
and percentage of the name of the workplace of respondents are depicted in Table 4 and
Figure 5 below.

Table 4
Name of the workplace of Respondent
Name of the Bank Frequency Percentage

NABIL 7 14

CBL 10 20

KUMARI 3 6
GIBL 7 14
SBI 4 8
NIC ABL 8 16
SBL 4 8

NIMB 7 14

Total 50 100
Source: Field Survey, 2023

Figure 5
 16

Name of the workplace of Respondent

NIMB NABIL
SBL 14% 14%
8%

CBL
20%
NIC ABL
16%

SBI GIBL KUMARI

8% 14% 6%

Table number 4 and figure 5 show the name of the workplace of the respondent. Among
50 respondents, 14% work on NIMB, 8% work on SBL, 16% work on NIC Asia, 8%
work on SBI, 14% work on NABIL, 20% work on CBL, 7% work on Kumari and 14%
work on GIBL.

2.1.5 Respondents working experience in Bank

The working experience in the bank shows the number of years respondents have
worked in the respective bank. The frequency and percentage of working experience of
the respondents in the bank are depicted in table 5 and figure 6 below.

Table 5
Respondents working experience in Bank
Years Frequency Percentage

Less than a year 5 10

1 - 3 years 26 52

3 - 6 years 15 30

More than 6 years 4 8

Total 50 100
Source: Field Survey, 2023
Figure 6
Respondents working experience in Bank
 17

Table 5 and figure 6 show the working experience of the respondent in the bank. Most of
the respondent's working experience is 1 - 3 years i.e 52%, 30% of the respondent's
working experience is 3 - 6 years, 8% of respondent's working experience is more than 6
years and 10% of the respondent's working experience is less than a year.

2.2 Data presentation

In this section the data collected via online questionnaire is presented using table, pie
chart and bar graph.

2.2.1 Likelihood of bank to organize training

The likelihood of a bank organizing training shows if the bank is in favor of

organizing training or not. The frequency and percentage of the respondents are depicted
in Table 6 and figure 7 below.

Table 6
Likelihood of bank to organize training
Organizing of training Frequency Percentage

Yes 50 100
 18

No 0 0

Total 50 100
Source: Field Survey, 2023

Figure 7
Likelihood of bank to organize training

Table 6 and figure 7 show the likelihood of the bank to organize training. It shows that all
the sample banks are organizing training.

2.2.2 Frequency of training organized by bank in a year

The frequency of training organized by a bank in a year shows the number of

times a bank organizes training. It comprises weekly, monthly, twice a month, and others.
The frequency and percentage of the respondents are depicted in table 7 and figure 8
below.

Table 7
Frequency of training organized by bank in a year
Time Interval Frequency Percentage

Weekly 2 4
Monthly 27 54
Twice a month 7 14
 19

Others 14 28

Total 50 100
Source: Field Survey, 2023

Figure 8
Frequency of training organized by bank in a year

Table 7 and Figure 8 show the frequency of training organized by bank in a year. 4% of
respondent’s bank organizes training weekly, 54% of respondents' bank organizes
training monthly, 14% of respondents' bank organizes training twice a month and 28% of
respondents' bank organizes training in other ways. Other includes bank organizing
training semi-annually, as required and as per management decision.

2.2.3 Respondents participation in training and its type

The respondent’s participation in training shows if the respondent has ever participated in
training organized by the bank. The frequency and percentage of the respondents’
participation in training are depicted in Table 8 and figure 9 below.

Table 8
Respondent’s participation in training
Participation Frequency Percentage

Yes 50 100
 20

No 0 0

Total 50 100
Source: Field Survey, 2023

Figure 9
Respondent’s participation in training

Table 8 and figure 9 show the participation of respondents in training. The survey showed
that all 50 respondents have attended training.

The type of training shows the type of training most organized by the bank. It includes
department-wise training and branch-wise training. The frequency and percentage of the
types of training are depicted in Table 9 and Figure 10 below.
Table 9
Types of training
Type Frequency Percentage

Department wise training 42 84

Branch wise training 8 16

Total 50 100
Source: Field Survey, 2023

Figure 10
 21

Types of training

Table 9 and Figure 10 show the types of training. 84% of respondent banks mainly
conduct department-wise training and 16% of respondent banks conduct branch-wise
training.

2.2.4 Most organized training

The most organized training shows the type of most organized on the job and off
the job. It includes ranking among coaching, case study, seminar, simulation, and planned
work assignment. There were ranked from 1 to 5. The frequency and percentage of the
most organized training are depicted in Table 10 and Figure 11 below.
Table 10
Most organized training
1 2 3 4 5

Coaching 27 6 8 5 4
Case study 4 17 15 4 10
Seminar 2 13 11 15 9
Simulation 5 0 14 17 14
Planned
work 12 14 2 9 13
assignment
Source: Field Survey, 2023
 22

Figure 11
Most organized training

Table 10 and Figure 11 show the most organized training. Coaching is organized the most
in the sample bank.

2.2.5 Assessment of training

The assessment of training shows the current status of training. The data was
collected using a 5 point likert scale. The frequency and percentage of the assessment of
training are depicted in Table 11 and figure 12 below.

Table 11
Assessment of training
SN Strongly Neutral Disagree Strongly N
Agree Disagree
Agree

Trainings are given adequate

Q1 15 21 9 4 1 50
importance

Q2 Trainings are well planned 6 22 20 1 1 50

 23

The organization analyzes

gap net current and required
Q3 1 29 14 5 1 50
level of knowledge, skills,
and attitude

Trainings are
designed through
Q4 5 22 17 2 4 50
employee
assessment

Trainings periodically
Q5 6 24 14 2 4 50
evaluated and improved

Training helps to know

Q6 15 24 6 2 3 50
organization value

I have acquired technical

Q7 knowledge and skills through 12 29 4 4 1 50
training
Source: Field Survey, 2023
Figure 12
Assessment of training
 24

Table 11 and Figure 12 shows the assessment of training.

2.2.6 Assessment of the relationship between training and employee performance

The assessment of the relationship between training and employee performance

shows the relationship between training and employee performance. The data was
collected using a 5 point Likert Scale. The frequency and percentage of the relationship
between training and employee performance are depicted in Table 12 and Figure 13
below.

Table 12
Assessment of the relationship between training and employee performance
Strongly
Strongly
SN Agree Neutral Disagree N
Disagree
Agree
 25

Training helps for change

Q1 11 25 6 3 5 50
management

Training helps to change

challenges into opportunities
Q2 and weaknesses into 6 28 15 0 1 50
strengths in the changing
environment

My organization gives me
Q3 feedback on performance 5 22 20 2 1 50
before and after training

After attending training, I

feel more confident about my
Q4 job performance 5 32 11 1 1 50
Training has increased my
Q5 14 29 5 0 2 50
job performance
Training helped me to
Q6 14 31 1 3 1 50
change knowledge into skills
Training helps to enhance the
Q7 12 34 3 0 1 50
motivation of personnel
Training helped me to
Q8 cooperate with others to 12 36 0 1 1 50
increase job performance
Training environment in
bank encourage employee
Q9 participation which leads to 12 33 3 0 2 50
an increase in overall job
performance
Source: Field Survey, 2023

Figure 13
 26

Assessment of the relationship between training and employee performance

Table 12 and Figure 13 show the assessment of the relationship between training and
employee performance.

2.3 Data analysis

In this section collected data are analyzed using descriptive analysis. It analyzes
measurable questions as well as study variables using various statistical tools.

2.3.1 Descriptive analysis

Descriptive analysis analyzes and describes the current training practices and their
impact on employee performance in commercial banks of Nepal .SPSS was used to derive
the value of mean and standard deviation from the answers collected through the
questionnaires. A five-point Likert scale was used for each question ranging from 1-
Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree. The mean and
standard deviation for each statement is presented in tabular form.
Table 13
 27

Descriptive Analysis for assessment of training

Standard
S.N N Mean
Deviance

Q1 Trainings are given adequate importance 50 3.9 0.995

Q2 Trainings are well planned 50 3.62 0.805

The organization analyzes the gap between net current

Q3 50 3.40 0.833
level and required level of knowledge, skills, and attitude
Q4 Trainings are designed through employee assessment 50 3.44 1.0135
Q5 Training periodically evaluated and improved 50 3.52 1.035
Q6 Training helps to know organization value 50 3.92 1.086
I have acquired technical knowledge and skills through
Q7 50 3.94 0.913
training

According to the data collected via questionnaire, it shows that the mean value of
assessment of training ranges from 3.44 to 3.94. The mean and standard deviation value
of Q1 is 3.9 and 0.995 which shows that the Training & development are given adequate
importance. The mean value and standard deviation values of Q2 are 3.62 and 0.805
which shows that the training are well planned. The mean value standard deviation value
and standard deviation value of Q3 are 3.40 and 0.833 which shows that the organization
analyzes the gap between net current level and required level of knowledge, skills, and
attitude. The mean value and standard deviation values of Q4 are 3.44 and 1.013 which
shows that the training are designed through employee assessment. The mean value and
standard deviation values of Q5 are 3.52 and 1.035 which shows that the training
periodically evaluated and improved. The mean value and standard deviation values of
Q6 are 3.92 and 1.086 which shows that the training helps to know organization value.
The mean value and standard deviation values of Q7 are 3.94 and 0.913 which shows that
I have acquired technical knowledge and skills through training.

The table also shows that Q6 has the highest standard deviation of 1.086 in comparison to
other statements. Higher deviation means the data set is far away from the mean. The
 28

respondents have different perceptions of the statement "Training helps to know

organization value”.

Table 14
Descriptive Analysis for assessment of the relationship between training and employee
performance
Standard
S.N N Mean
deviation

Q1 Training helps for change management 50 3.68 1.186

Training helps to change challenges into opportunities and
Q2 50 3.76 0.744
weaknesses into strengths in the changing environment
My organization gives me feedback on performance
Q3 50 3.56 0.812
before and after training
After attending training, I feel more confident about my
Q4 50 3.78 0.737
job performance
Q5 Training has increased my job performance 50 4.06 0.867
Q6 Training helped me to change knowledge into skills 50 4.08 0.853
Q7 Training helps to enhance the motivation of personnel 50 4.12 0.689
Training helped me to cooperate with others to increase
Q8 50 4.14 0.700
job performance
Training environment in bank encourage employee
Q9 participation which leads to an increase in overall job 50 4.06 0.818
performance

According to the data collected via questionnaire, it shows that the mean value of
assessment of training ranges from 3.56 to 4.14. The mean value and standard deviation
values of Q1 are 3.68 and 1.186 which shows that the training helps for change
management. The mean value and standard deviation values of Q2 are 3.76 and 0.744
which shows that the training helps to change challenges into opportunities and
weaknesses into strengths in the changing environment. The mean value and standard
deviation value of Q3 are 3.56 and 0.812 which shows that my organization gives me
feedback on performance before and after training. The mean value and standard
deviation values of Q4 are 3.78 and 0.737 which shows that after attending training, I feel
 29

more confident about my job performance. The mean value and standard deviation values
of Q5 are 4.06 and 0.867 which shows that the training has increased my job
performance. The mean value and standard deviation value of Q6 are values 4.08 and
0.853 which show that the training helped me to change knowledge into skills. The mean
value and standard deviation values of Q7 are 4.12 and 0.689 which shows that the
training helps to enhance the motivation of personnel. The mean value and standard
deviation values of Q8 are 4.14 and 0.700 which shows that the training helped me to
cooperate with others to increase job performance. The mean value and standard
deviation values of Q9 are 4.06 and 0.818 which shows that the Training environment in
a bank encourages employee participation which leads to an increase in overall job
performance.

The table also shows that Q1 has the highest standard deviation of 1.186 in comparison to
other statements. Higher deviation means the data set is far away from the mean. The
respondents have different perceptions of the statement "Training helps for change
management.”

2.4 SWOT analysis

SWOT analysis is the tool used for assessing strengths, weaknesses, opportunities,
and threats for the organization. It helps to understand where the organization stands in
the market, how it is better and lacking in comparison to its competitor. It also helps to
grab opportunities before others by continuously monitoring the environment. SWOT
analysis is also known as situational analysis. It is important for every organization,
including commercial banks.
 30

The strength of commercial banks is:

1. Banks are trusted by the customers.
2. The banking staff is competent.
3. Availability of branch and branchless service of the bank in various places 4.
Adequate funds available for investment and lending

The weaknesses of commercial banks are:

1. Inability to launch new and differential banking product
2. Lack of effective reward and punishment mechanism for performance
improvement of employees
3. The operational activity of bank is more process-oriented than result-oriented
4. ATMs of some banks are out of service most of the time
5. They don't have adequate liquidity
6. Trainings aren't organized by analyzing the need of the consumer

The opportunities of commercial banks are:

1. There are various policies formed by the government to promote industries,
agriculture sector, and domestic economic activities which will increase demand
for loanable fund
2. Scope for expansion of banking reach as the government has requested banks to
open branches in rural areas.
3. There is increasing awareness in the public regarding financial knowledge and
banking services.
The threats of commercial banks are:
1. There is intense and unfair competition in the banking sector for deposit and
lending results in higher risk for banking.
2. Individuals are gradually withdrawing their deposits due to decreased purchasing
power brought by the covid outbreak.
3. The emergence of the craze of investing in securities than deposition of money
which can decrease loanable funds of the bank.
 31

2.5 Findings and discussion

The major finding of this research is that there is a positive relationship between
current training and employee performance in commercial banks. The finding is based on
the data collected by an online questionnaire and data analyzed using descriptive and
analysis. Some findings are:
I. 63.2 % variation in the employee performance is because of the training and
development and 36.8%of the variation in employee performance is because of
other factors.
II. A different branch of the same bank organizes different training program
III. Most of the branches of banks organize training to train staff department-wise
rather than branch-wise training. Only a few banks organize branch-wise training
the most.
IV. On the job training is organized more often than off the job.
V. Training is given importance by banks but some are lacking in terms of planning
the training according to the need of employee

Chapter III

CONCLUSION AND ACTION

This study was arranged to study the impact of training and development on employee
performance of commercial banks. In the previous chapter, we have analyzed data
according to the purpose of the study. In this chapter, we will conclude the report and
implications of the study. This chapter is divided into two subsections i.e. conclusion and
implication.

3.1 Conclusion
With globalization, the business world is changing rapidly. To keep up with
competitors, organizations employ new technologies, working methods, and strategies.
This brings the need to advance the skill of the employee to keep up with the change. And
for that various training and development programs are organized in banks. Training
helps employees to enrich their skills and enhance their knowledge base. So, the study
 32

was conducted to know the current status of training and development and assess the
relationship between training and employee performance.
The study was conducted taking 50 samples from 8 different commercial banks of
Nepal. The sample was drawn using convenience and snowball sampling. An online
questionnaire was used to collect primary data from the respondents. Questionnaires were
made in the Google form and distributed via email and social media. Data were analyzed
using descriptive statistics. The study's main purpose was to know the impact of training
and development on employee performance of commercial banks and it was quite
successful to meet the objective.
There is a direct relationship between training and employee performance. This
means training has a significant impact on employee performance. Training helps to
develop skills and capabilities to perform the job efficiently. Banks mostly organize
department-wise training.
As every department has its functioning and requires different skill sets. They are
found to organize on the job training more often than off the job training. Different
branches of the same bank have different formats for organizing training but the objective
is the same. All the banks organize training to broaden the knowledge and skill of
employees and achieve organizational goals. Many respondents feel that the banks are
organizing training often but they aren't organizing it by analyzing the actual need of
training. So, the bank should properly plan training by employee assessment and
analyzing the gap between required skill and existing skills. They can also include
employees in the planning process which will increase their participation and contribute
to increasing job performance.

3.2 Implications
The study shows that there is a positive relationship between training and employee
performance of the commercial bank. The bank should focus on planning and organizing
training efficiently. They should consider employee need assessment; take feedback on
previous training before organizing training. The HR department should track before and
after performance of the employee to know if the training fulfilled its purpose or not.
They should continuously organize training programs according to the necessity to
embrace the performance of the workforce. Training not only improves the performance
 33

of the workers to effectively perform the present job but also enhance the knowledge,
skills and attitude of the workers necessary for the longer term job, thus contributing to
superior organizational performance.
This summer project can be a valuable piece of study for human resource
development to design training and development. It provides insights on current training,
where the industry is giving the best effort, and where the attention is needed.

The study has only focused on 8 commercial banks. There are only two variables:
training and employee performance. Thus, other studies on different populations are
much more appreciated to ensure strong empirical conclusions on how training impacts
on employee performance.
 34

REFERENCES

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Retrieved March 27, 2022, from https://www.ottawa.edu/online-andevening/blog/january-2021/5-
benefits-of-training-and-development

Bataineh, K. A. A. (2014). Impacts of Employee Training on the Performance of Commercial

Banks in Jordan.European Journal of Business and Management, 6(27).
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28, 2022, from https://www.perkbox.com/uk/resources/blog/employee-performance

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Retrieved March 27, 2022, from https://www.ottawa.edu/online-andevening/blog/january-
2021/5-benefits-of-training-and-development

Gnawali, A. (2018). Human Resource Development Practices: Empirical Evidence from Nepal
Rastra Bank. Kathford Journal of Engineering and Management, 1(1), 57-63.
https://doi.org/10.3126/kjem.v1i1.22024

Heartly, N., & Morley, M. (1994). Human resource development in Ireland: position, practices.
Administration, 42(3), 299-320.

Heathfield, S. (2021, February 26). What Is an Employee?The Balance Careers. Retrieved March
28, 2022, from https://www.thebalancecareers.com/what-is-an-employee-1918111

Jeni, F. A., Momotaj, & Al-Amin, M. (2021). The Impact of Training and Development on
Employee Performance and Productivity: An Empirical Study on Private Bank of
Noakhali Region in Bangladesh. South Asian Journal of Social Studies and Economics, 9(2),
1-18. https://doi.org/10.9734/sajsse/2021/v9i230234

Kandel, S. (2020).Impact of Training and Development on Employees Performance in Nepalese

Commercial Banks.TUCL Digital Repository.
http://107.170.122.150:8080/xmlui/handle/123456789/2257

Khan, M. (2012).The Impact of Training and Motivation on Performance of

Employees.Business Review, 7(2), 84-95. https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=2206854#:~:text=There%20is%20p ositive%20relationship
%20between,enhance%20the%20performance%20of%20employe es.
 35

Kumar, D., & Siddika, H. 2017 .Benefits of training and development program on employees’
performance: A study with special reference to banking sector in Bangladesh.
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http://dx.doi.org/10.5281/zenodo.1133603

Saputri, P., Lorensa, D., Asriani, A., & Za, S. Z. (2020, March). THE INFLUENCE OF
TRAINING AND DEVELOPMENT TO EMPLOYEE PERFORMANCE.International
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Tahir, A., & Sajjad, S. (2013). Assessing the Impact of Training on Employees’ Performance in
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Tanveer, A., & Imran, M. 2015, March . Impact of training & development on employees’
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development
 36

APPENDICES

Questionnaire on “Impact of training (skill development) on employee performance of

commercial banks”

Dear Respondent,

I am Dristy Bista, currently studying BBA in Mahendra Multiple Campus. I am working on my summer project
as a part of the curriculum of the BBA 7 th semester. For that, I will require your insights
on your experience with training and development.

The title of my project is "Impact of training (skill development) on employee

performance of commercial banks". This project aims to study the relationship between
training and development and employee performance, and assess the status of training
and development programs. It will be studied by collecting primary data from several
commercial banks in Nepal.

All the data collected will remain confidential and only be used for data analysis.

Looking forward to hearing your experience on training via Questionnaire.

Regards,
Dristy Bista
7th Semester
Mahendra Multiple Campus

Section 1: Respondent Information

1, Email
 37

2, Name

3, Age*
Below 20
20-30
30-40
Above 40

4, Gender *
Male
Female

5, Your education background*

+2
Graduated
Degree
P.H.D

6, Name of the bank you are currently working on *

7, How long have you been working with the bank*

⃝ less than a year
⃝ 1 - 3 year
⃝ 3 - 6 year
⃝ More than 6 year
 38

Other…

8, Does your bank organize training programs? *

⃝ Yes
⃝ No

Section 2: Analysis of Training programs

9, How often does your bank arrange a training programme?*

⃝ Weekly
⃝ Monthly
⃝ Twice a month
Other…

10, Have you attended any training organized by them?*

⃝ Yes
⃝ No

11, Which training have you attended the most? *

⃝ Department wise training
⃝ Branch wise training

12, Which of the following types of training is organized the most (Rank in order, 1 being
the most organized and 5 being the least) *

1 2 3 4 5

Coaching

Case study
 39

Seminar

Simulation

Planned Work Assignment

13. The following statements are related to the assessment of training programs. (You
will have to express your degree of agreement with the statement) *

Strongly Agree Neutral Disagree Strongly

Agree Disagree

Trainings are given adequate

importance

Training are well planned

The organization analyzes the gap

between current level and required
level of knowledge, skills, and attitude

Training are designed through

employee assessment

Training periodically evaluated and

improved

Training helps to know organization

value

I have acquired technical knowledge and

skills through training
 40

14. The following statements are related to the assessment of the relationship between
training programs and employee performance. (You will have to express your degree of
agreement with the statement) *

Strongly Agree Neutral Disagree Strongly

Agree Disagree

Training helps for change management

Training helps to change challenges into

opportunities and weaknesses into
strengths in the changing environment

My organization gives me feedback on

performance before and after training

After attending training, I feel more

confident about my job performance

Training has increased my

job performance

Training helped me to change knowledge

into skills

Training helps to enhance the motivation

of personnel

Training helped me to cooperate with

others to increase job performance

Training environment in bank encourage

employee participation which leads to an
increase in overall job performance
41