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The Effect of Training and Development Methods On Employee Satisfaction and Performance in Commercial Banks

The document discusses the effect of various training and development methods on employee satisfaction and performance in commercial banks in Bangladesh. It first provides background on the importance of training and development in achieving business goals and competitive advantage. It then reviews literature showing that training and development positively impacts service delivery, organizational performance, employee retention, job satisfaction, and performance. The study aims to identify which specific training methods most positively impact employee satisfaction and performance in Bangladeshi commercial banks. It hypothesizes that training methods positively affect satisfaction and performance and analyzes survey data from employees of various commercial banks.

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0% found this document useful (0 votes)
24 views18 pages

The Effect of Training and Development Methods On Employee Satisfaction and Performance in Commercial Banks

The document discusses the effect of various training and development methods on employee satisfaction and performance in commercial banks in Bangladesh. It first provides background on the importance of training and development in achieving business goals and competitive advantage. It then reviews literature showing that training and development positively impacts service delivery, organizational performance, employee retention, job satisfaction, and performance. The study aims to identify which specific training methods most positively impact employee satisfaction and performance in Bangladeshi commercial banks. It hypothesizes that training methods positively affect satisfaction and performance and analyzes survey data from employees of various commercial banks.

Uploaded by

aduchekol1992
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The Effect of Training and Development Methods on

Employee Satisfaction and Performance in Commercial


Banks
Serena AKTAR1
Received: December 12, 2022
1 Uttara University, Road-15, 1230 Dhaka, BD; [email protected] Revised: February 17, 2023
Accepted: March 9, 2023
Published: March 21, 2023

Abstract: Training and development efforts are instructional activities within an organization
that aim to improve performance. These programs often involve increasing knowledge and skills,
abilities that could be reasons for increasing job satisfaction and job performance. A training
method is a strategy or technique for developing the knowledge, skills, and abilities of employees
so that they can do their given tasks flawlessly. The organization must evaluate the nature of the
job, the size of the organization and its employees, the types of employees, and the cost of
adopting a training approach. Various organizations have identified and used many training
methods based on training materials, time, costs, and types of tasks. The present study selected
seven popular methods of training and development used frequently by the Commercial Bank of
Bangladesh. For this study, it has been hypothesized that training and development methods
positively impact employees’ satisfaction and performance from the perspective of commercial
banks in Bangladesh. The current study is empirical in nature, implying the collection of both
primary and secondary data. A structured questionnaire was used to collect primary data from
employees of twelve commercial banks. The 250 questionnaires were distributed to the
employees and collected. After sorting out the primary data, 200 questionnaires were used for
analysis. The present study revealed that the informal learning method of training and
development has a significant positive impact on employees’ satisfaction and performance in
commercial banks in Bangladesh. The other two methods of training and development, i.e. job
rotation and seminars, have a significant positive impact on creating employee satisfaction in the
commercial banks of Bangladesh.

Keywords: training and development methods; job satisfaction; job performance; commercial
bank.

Introduction

Technology has been changing rapidly, and the use of technology in business is growing
in the COVID-19 pandemic business environment. Training and development play a vital
role in achieving business goals by increasing knowledge, skills, and attitudes. The private
commercial banking service is one of the fastest-growing service sectors among all service
sectors in Bangladesh. Employee performance is the main component of achieving a
competitive advantage in any industry. The performance of employees in the commercial
banking sector depends on their job-related knowledge, skills, and challenge-taking
attitudes. Employee job satisfaction is one of the fundamental components of achieving
excellent job performance. In the present study, the researcher wants to identify the most
accepted method of training and development that has a significant positive impact on job
satisfaction and the performance of employees in the commercial banking sector of
Bangladesh.

Dialoke et al. (2016) have identified a positive and significant effect of training and
development on improving service delivery and organizational performance. Samwel

How to cite
Aktar, S. (2023). The effect of training and development methods on employee satisfaction and
performance in commercial banks. Management Dynamics in the Knowledge Economy, 11(1), 30-
47. DOI 10.2478/mdke-2023-0003
ISSN: 2392-8042 (online)
Journal Abbreviation: Manag. Dyn. Knowl. Econ.
www.managementdynamics.ro
https://content.sciendo.com/view/journals/mdke/mdke-overview.xml
Management Dynamics in the Knowledge Economy | 31
Vol.11 (2023) no.1, pp.30-47; DOI 10.2478/mdke-2023-0003

(2018) suggested that adequate training and development policies are necessary for
developing drilling companies. Chaudhary and Bhaskar (2016) revealed a positive
relationship between training and development and job satisfaction in the education
sector. The findings of a study showed that training and development led to higher job
satisfaction of employees who fulfilled their duties with a great deal of responsibility and
the best performance (Khan, 2016). Terera and Ngirande (2014) highlighted a significant
relationship between training and employee retention. However, they reported a positive
relationship between employee job satisfaction and retention. Sanyal and Hiram (2018);
Zreen et al. (2018); Imran and Tanveer (2015); and Kum (2014) found that training and
development have a positive impact on employees' performance. Asfaw et al. (2015)
revealed that the more training an employee gets, the more efficient their level of
performance will be.

Onyango and Wanyoike (2014) investigated the effect of training on staff performance in
Kenyan public health institutions and discovered a positive relationship between
employee training and performance. Shafiq and Hamza (2017) aimed to investigate the
effect of training and development on employee performance and identified that training
and development did not have a statistically significant impact on employee performance
except for job enrichment. Sendawula et al. (2018) and Boadu et al. (2014) revealed that
management and employees faced peculiar problems during training and development
exercises. Management complained about funds, while employees expressed concern
about the time allotted to various training and development programs. Younas et al.
(2018) identified the impact of training and development on employee performance.
Their research found that training and development improve employee performance, thus
organizations must invest in employee training and development to maintain a long-term
competitive advantage. Abulraheem (2016) identified that training and development
were positively correlated and claimed a statistically significant relationship with
employee performance and productivity.

The main purpose of this study is to find the impact of training and development methods
on employee satisfaction and performance. Almost all researchers ignored the methods of
training and development in their previous studies. In this sense, this study is focused on
a new dimension of the training and development field. In this research, the researcher
would try to identify which method or methods of training and development have or have
had a high impact on creating job satisfaction as well as employee performance. In this
regard, the researcher conducted an informal interview for the purpose of identifying the
most popularly used methods of training and development. In Bangladesh, commercial
banks frequently use some methods of training and development. Seven training methods
have been selected based on frequently used methods of training and development. It is
hypothesized that training and development methods have a positive impact on employee
satisfaction and performance in the commercial banks of Bangladesh. Based on the
research objectives, some statistical measures were used for analyzing the survey data i.e.
reliability analysis, frequency distribution of descriptive statistics, correlation analysis,
regression analysis, and hypothesis testing.

Literature review

Some industries are performing well in this age of globalization and technological
innovation. One of them is the commercial banking industry. Proper training and
development strategies can improve the service quality of banking workers in this
situation. The researchers evaluated some articles on training and development in various
corporate sectors and discovered the following results, which are presented in the below
section
32 | Serena AKTAR
The Effect of Training and Development Methods on Employee Satisfaction and Performance in
Commercial Banks

Training methods

The training method is a technique of acquiring knowledge, skill, and ability.


Organizations use a combination of different training methods rather than a single
training method (Janakiram, 2008, pp. 102–129). Training is classified into two categories
based on the places where training is delivered: on-the-job training and off-the-job
training. The classification of training methods based on training policies, strategies, and
expected learning shown in Figure 1.

Figure 1. Classification of training and development methods.


Source: Janakiram (2018, p. 102)

The lecture-based training method is one of the most popular training methods. In this
training method, a trainer (or "lecturer") presents or talks to a group of trainees. This
method is for basic training or knowledge-based training. Lecture-based training is not
well-suited for topics that require a lot of trainee interaction, discussion, or participation
with each other or with the trainer. Training is incomplete without a lecture. The trainer
should begin the training session by stating the aim, goal, agenda, processes, or methods
for creating more attention (Khan, 200, p. 129). The coaching method entails a superior
teaching a junior or subordinate the knowledge and skills of a job, with the superior
pointing out mistakes and making suggestions as needed (Khan, 2007, p. 128). The
understudy arrangement involves a boss providing training to his subordinate as his
"understudy," where the chosen trainee is most likely to be promoted to a higher role after
the retirement or promotion of his boss, under whom he is receiving training. In this case,
the trainee must ascend to the position of boss. (Khan 2007, p. 128). Position or job
rotation involve the movement of employees to different jobs to gain knowledge and
experience in several roles across the organization. It is used to understand the problem
and the methods of developing respect for co-workers. It is also known as "cross-training"
(Khan, 2007, p. 128). The case study method describes an actual or fictitious problem in a
situation, and trainees typically apply knowledge and skills acquired through training and
prior experience to solve the problem and make a recommendation (Janakiram, 2008, p.
107).

In the Job Instruction Training (JIT) method, a supervisor explains the knowledge, skill,
and method of doing the job to the trainee employee and requests the trainee to do the job
himself after providing feedback (Khan, 2007, p. 128). Special meetings of any
department's employees are organized to discuss the issues experienced by the employee
while performing the job and to provide recommendations to improve the job's
performance. These meetings are held by taking a brief break from work (Khan, 2007, p.
128). Action learning programs work on investigating and solving problems in their
departments. The team is formed by 5 to 25 members, and they are assigned real-world
business problems that extend outside their usual areas of proficiency in order to learn
from coaching and feedback. The senior managers usually choose the projects and decide
Management Dynamics in the Knowledge Economy | 33
Vol.11 (2023) no.1, pp.30-47; DOI 10.2478/mdke-2023-0003

whether to accept the teams’ recommendations (Dessler & Varkkey, 2011, p. 296). The
seminar is a smaller conference, but a greater degree of participation from the members
is integrated. The seminar method is usually centered around a single theme, where
speakers are acknowledged specialists who make a brief presentation on the topic of
discussion and lead the members towards discovering the subjects. The seminar
participants number should be optimized in order to form smaller association groups
(Janakiram, 2008, p. 121).

Impact of training and development on satisfaction

Training and development, job happiness, and job performance have a direct positive
impact on young employee retention in Vietnamese firms (Nguyen, 2021). The training
approach has an impact on the academic staff at Bayero University Kano's level of job
satisfaction. The study advises management to develop a system for accurately assessing
and evaluating employee performance following sponsorship and training (Nuhu et al.,
2018). There is a strong correlation between organizational commitment and training.
There is a strong correlation between organizational commitment and supervisory
support, job satisfaction and training, and organizational commitment and job satisfaction
(Usman Ahmad et al., 2019). Job satisfaction is significantly connected to training
programs offered by telecommunications businesses. The results of this study could serve
as a guide for other Malaysian businesses to avoid underestimating the influence of
training on job performance and job satisfaction. Companies could overcome the current
economic issues arouse after COVID-19 outbreak and continue to thrive while maintaining
their competitive strength by engaging in ongoing training (Kanapathipillai & Azam,
2020). Work productivity is impacted by job satisfaction and job training, while
competence has no impact on work productivity (Prasetyo et al., 2021). Job satisfaction is
positively and significantly impacted by competence. Employee commitment is positively
and significantly impacted by job satisfaction. A mediating factor in the connection
between employee commitment and training is job satisfaction (Choiriyah & Riyanto,
2021). Co-workers and contingent rewards were found to have a significant impact on the
training motivation components of expectation (belief in the ability to learn) and valence
(perceived worth of training results), but no impact on instrumentality (rewards
connected with learning) (Ensour et al., 2018).

Organizations must invest in employee training and development to maintain a long-term


competitive advantage. Okechukwu (2017) found that training and development facilities
and evaluation have the lowest level of employee satisfaction. Singh and Mohanty (2012)
found that there is no significant relationship between training and employee
retention. Abulraheem and Raja (2016), Uzoamaka and Innocent (2017), Ndamaimunamh
and Yazdani (2013), Quizon (2014), and Tiwari and Shukla (2018) research aimed expand
the previous training literature by providing a detailed examination of training needs
assessment and organizational effectiveness based on development-based strategy. There
is a negative relationship between affective commitment and continued commitment
(Kumar & Vikram, 2017). Anwar and Shukur, (2015) developed a quantitative method to
analyze training and development. They identified a positive impact on job satisfaction in
private banks in Erbil. Miah (2018) studied the effect of job satisfaction on organizational
performance.

Bhat (2013) analyzed several measures of performance, such as compensation,


performance appraisal, and organizational commitment. Halawi and Haydar (2018)
revealed that employees were able to develop inner satisfaction, receive positive
evaluation feedback, understand how to achieve quality output, and develop a career
beyond classwork after training. Saranya (2014) revealed that job satisfaction represents
one of the most complex areas that the managers are facing when managing their
34 | Serena AKTAR
The Effect of Training and Development Methods on Employee Satisfaction and Performance in
Commercial Banks

employees. They recommended that facets such as pay, promotion, job safety and security,
working conditions, job autonomy, relationships with co-workers and supervisors, and
the nature of work affect job satisfaction and performance (Khan et al., 2012). They also
showed that there is a strong positive relationship between employee job satisfaction and
organizational performance.

At the same time, "remuneration" and "promotion" are two crucial factors of job
satisfaction. According to the study, an effective policy on recruitment, job security,
service rules, promotional opportunities, regular payments, and retirement benefits
affects both government and non-government employees' job satisfaction and attitude
(Sarker et al., 2017). Hidayah and Tobing (2018) showed that job satisfaction, motivation,
and organizational commitment simultaneously influence employee performance. They
revealed that the dual direction of the relationship composes a cycle cause-and-effect
relationship, so satisfaction leads to performance, and performance leads to satisfaction
through several mediating factors. Successful organizations apply periodic satisfaction
and performance measurement tests to track the level of these important variables and
set corrective actions (Alromaihi et al., 2017). Wendrila (2015) focused on the
relationship between organizational culture and levels of job satisfaction and how it
affects corporate performance as a whole. It highlights how organizational culture helps
in creating job satisfaction, which ultimately helps in achieving organizational excellence
and effectiveness. The abovementioned research studies influence the researcher to
hypothesize the following hypothesis:

H1: There is a significant positive impact of the selected most important methods of training
and development on the employees’ job satisfaction from the commercial banks in
Bangladesh.

Impact of training and development on performance

The findings reveal a connection between performance appraisal, training, and


development (HRM practices) and organizational commitment, which has a counter
connection to employee turnover intention. Employee commitment will promote
organizational effectiveness through the retention of competent and experienced
personnel, minimizing turnover intentions. As a result, this research focuses on the impact
of HRM strategies on organizational commitment and turnover intention. The data results
can be used as a reference or guideline in future studies (Kadiresan et al., 2015). The
findings revealed that training and development are favorably associated with executive-
level employee performance. Based on the research findings, the researchers proposed
that the organization construct a proper and logically substantial method to choose the
employees who will certainly participate in the training program and that the
organization’s management design a widely distributed post-evaluation scheme to
evaluate employee performance (Sandamali et al., 2018).

The results showed that while training and employee engagement significantly predicted
employee performance, it is a stronger predictor of employee performance when
compared to training. The results show a positive association between training and
development of employee performance (Sendawula et al., 2018). According to the findings
of a study, development leads to an improved employee performance, and both training
and development nurture employee performance. Organizations must invest in staff
training and development to maintain a long-term competitive advantage (Abogsesa &
Kaushik, 2017). Research findings showed that training, and development have a positive
impact on employee work performance. Furthermore, it highlighted that the most
effective dimension (r2 = 0.091) of employee training requirement identification and the
lowest was training applicability on the job (r2 = 0.016) in the Regional Development Bank
Management Dynamics in the Knowledge Economy | 35
Vol.11 (2023) no.1, pp.30-47; DOI 10.2478/mdke-2023-0003

Head Office (Thennakoon et al., 2018). The same study also discovered evidence that T&D
variables had a substantial impact on the performance of ADBL personnel; this matches
the findings of Sila (2014), Dabale et al. (2014), Jayum, Aule, and Teslim (2018), and
Abogsesa and Kaushik (2017). There is a study primarily focused on evaluating the effects
of learning programs that contribute to the development of greater performance and
productivity. It brought into attention the importance of training and how it supports
employees' skillset development.

The data show that the Faculty Development Program (FDP) improves faculty teaching,
expanding their skills, and helps them control their emotions, while increasing their
capacity to fulfill academic and administrative activities. Furthermore, FDP increases
work motivation, which helps teachers boost their performance (Chahar et al., 2021). No
training approach works for everyone. As a result, the Human Resource Department,
especially the Training and Development practitioner, should periodically assess the best
method for training. At the same time, organizations need to have access to post-training
evaluations because they are essential for determining the effectiveness of the complete
program as opposed to just the training approach (Mahadevan & Yap, 2019). A study's
results demonstrated the beneficial effects of job satisfaction, training, and development
on worker performance. Employee job satisfaction will increase through training and
development, and they can carry out their responsibilities with utmost care and efficiency
(Khan et al., 2016).

All types of businesses design employee training and development programs as a


continuous activity because the goal of every training session is to add value to employee
performance. Trainings aim to improve employees' learning after participating in the
learning session. Some firms organize and implement employee training programs
without establishing a goal or the objectives in order to understand what information,
skills, and talents employees will learn at the end of the training session or whether they
will meet job performance targets with the new knowledge. As a result, the firm must
create a training program with clear goals and objectives while keeping the specific needs
of both the individual and the organization in mind (Sharma & Taneja, 2018). A study
finding showed that human resource managers, professional and industry specialists, and
the government should focus on improving soft skills training approaches. Training can
provide learners with "space" or breaks during the training session to practice, apply,
internalize, and improve employee and organizational performance. (Mohamud et al.,
2017). The findings indicate a strong link between two variables: perceived training
availability and perceived supervisor support for training and organizational
commitment. Nevertheless, the perceived training advantages are negatively associated
with organizational commitment. The analysis also indicates a strong negative
relationship between organizational commitment and the intention to leave (Rawashdeh
& Tamimi, 2020).

Training and development are also a process of transferring information and knowledge
to employers and equipping employers with the right information to translate the
knowledge into practice in order to enhance organizational effectiveness and productivity
and the quality of people management (Vinesh, 2014). Shafiq and Hamza (2017),
Sendawula et al. (2018), Hameed and Waheed (2011) and Al-Mzary et al. (2015) showed
that there is a significant positive relationship between training and development and
employee performance. Awang et al. (2010) revealed that management and employees
faced peculiar problems during training and development exercises. Boadu et al. (2014)
and Younas et al. (2018) studied how training and development lead to better employee
performance. Raza (2014) found out that the management should concentrate on training
and development to improve the required skills of the employees, which are essential for
organizational performance. Sasidaran (2018) discovered that the success or failure of the
36 | Serena AKTAR
The Effect of Training and Development Methods on Employee Satisfaction and Performance in
Commercial Banks

firm depends on its employees' performance. Without proper training, employees do not
receive the information and develop the skillsets necessary for accomplishing their tasks
at their maximum potential.

Elnaga and Imran (2013) studied the impact of training practices on employee
performance. They did a critical assessment of the literature on the fundamentals of the
employee development program and its benefits to organizations and employees
(Jehanzeb and Bashir, 2013). Akter (2016) and Khan et al. (2011) demonstrated that
training method, training design, and delivery style have a significant impact on
organizational performance, and all three have a positive impact, therefore it increases
overall organizational performance. However, the results are strongly based on the
literature review. Shem and Ngussa (2015) concluded that training is a key factor for
improved performance as it enhances employees' levels of performance. Daniel (2018)
found that training enhanced employee performance as well as employee commitment to
the organization. The study also has some suggestions related to the current field (Kuma
& Siddika, 2017). Hafeez and Akbar's (2015) analysis shows a positive and significant
relationship between them, and the results reveal that the more the employee gets
trained, the more efficient their level of performance would be. The firm cannot develop a
strong competitive advantage without proper training given to the employees. Therefore,
training and development are the main criteria for the organization as well as the
employees (Jayanthi and Maheswari, 2018). Karim et al. (2019) found out that employees
are aware of training; employees are motivated through training, and it generates higher
performance. The literature of this research study influenced the researcher to
hypothesize the following hypothesis:

H2: There is a significant positive impact of the selected most important methods of training
and development on the employees’ job performance from the commercial banks in
Bangladesh.

Research methodology

This is an exploratory research. Both secondary and primary data have been used
purposefully. The secondary data has been collected from different published books and
journals. The primary data has been collected through a survey and a structured
questionnaire from the employees of commercial banks in Bangladesh. The researcher
primarily used the cluster random sampling method to select 12 commercial banks in
Bangladesh for collecting data. Then, the researcher distributed 250 questionnaires to the
employees of commercial banks in Bangladesh and got back 200 questionnaires that had
been properly filled out. Therefore, the sample size of this study is comprised of 200
employees of the commercial banks situated in Dhaka, Bangladesh. An informal interview
was conducted with a structured questionnaire for selecting the most popular and widely
used methods of training and development. The final questionnaire was divided into two
sections. Section I included the demographic-related questions, while Section II consisted
of closed-ended questions using the five-point Likert scale. Section II consisted of training
and development methods, job satisfaction, and employees’ work performance based on
perceptions. The Likert five-point scale has been used to design the last three parts of the
questionnaire, which consisted of "Strongly Disagree," "Disagree," "Neither Agree Nor
Disagree," "Agree," and "Strongly Agree."

After collection, the data was processed and analyzed in accordance to the objective. This
is essential for a scientific study to ensure that all relevant data is available for
contemplated comparisons and analysis (Kothari, 2004). After collecting the data, it will
be arranged and analyzed as per the requirements of the research objectives set to identify
Management Dynamics in the Knowledge Economy | 37
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the best training method based on creating job satisfaction and work performance. The
statistical package SPSS 26 (IBM) was used to analyze the data.

Results and findings

An analysis is generated based on the responses to the survey questionnaire to fulfill the
objectives of this study. From the responses of the employees of the commercial bank in
Bangladesh, the following tables have been inserted by using the statistical tools
mentioned in the research methodology:

An analysis is generated based on the responses to the survey questionnaire to fulfill the
objectives of this study. From the responses of the employees of the commercial bank in
Bangladesh, the following tables have been inserted by using the statistical tools
mentioned in the research methodology:

Reliability testing

Table 1. Reliability statistics


Cronbach's Alpha based on
Cronbach's Alpha N of Items
standardized items
0.754 0.791 21
Source: own processing

The Alpha coefficient ranges in value from 0 to 1 and may be used to describe the
reliability of factors extracted from dichotomous (that is, questions with two possible
answers) and/or multi-point formatted questionnaires or scales (i.e., rating scale: 1 =
"Strongly Disagree," 5 = "Strongly Agree"). The results of reliability have depicted the
value of Cronbach's alpha. Table 1 shows the value of Cronbach's alpha of 0.754, which
indicates the reliability of the questionnaire for further or next analysis (Nunnaly, 1978).

Descriptive statistics

Table 2. Demographic statistics of the respondents


Demographic Categories of Each Percent Std. Error
Frequency Mean
Variables Variables (%) of Mean

Gender Male 162 81.0


Female 38 19.0 1.19 .028
Total 200 100.0
Age group (years) 18-25 9 4.5
25-35 75 37.5
36-45 112 56.0 2.56 .044
46 -above 4 2.0
Total 200 100.0
Education Graduate 22 11.0
Postgraduate 177 88.5
3.90 .023
Doctorate Degree 1 0.5
Total 200 100.0
Marital Status Single 41 20.5
Married 159 79.5 1.80 .029
Total 200 100.0
Experience (years) 1-3 21 10.5
4-5 49 24.5 2.58 .052
6-10 124 62.0
38 | Serena AKTAR
The Effect of Training and Development Methods on Employee Satisfaction and Performance in
Commercial Banks

11-15 5 2.5
15-20 1 0.5
Total 200 100.0
Training Experience Regular 173 86.5
(years) Occasional 24 12.0
1.15 .028
Very Irregular 3 1.5
Total 200 100.0
Source: own processing

Table 2. shows that 162 (81.0%) of the respondents from commercial banks were male,
while 32 (19.0%) respondents were female. Around 9 (4.5%) of the respondents were
between the ages of 18 and 25, 75 (37.5%) were between the ages of 26 and 35, 112
(56.0%) were between the ages of 36 and 45, and 4 (2.0%) were 46 and older. This implies
that the majority of the respondents belonged to the middle age group. Also, 22 (11.0%)
of the respondents were graduates. Most of the respondents, 177 (88.5%), had acquired
post-graduate degrees, and only 1 of the respondents, representing 0.5% of the total, had
a doctorate. The majority of respondents in this study were married, with 159 (79.5%)
married and 41 (20.5%) unmarried. According to the documents in Table 2, 70 (35.0%)
of the 200 respondents have been working for 1-5 years. About 124 (62.0%) respondents
have been working for 6 to 10 years, 5 (2.5%) respondents have been working for 11 to
15 years, and only 1 (0.5%) respondent has been working for 16 to 20 years. Table 2 also
shows that 173 (86.5%) employees had attended training sessions regularly; 24 (12.0%)
occasionally; and 3 (1.5%) very irregularly.

Correlation analysis

Table 3. Correlations matrix


Coaching Pearson Correlation 1
Sig. (2-tailed)
Job Rotation Pearson Correlation .704** 1
Sig. (2-tailed) .000
Special task Pearson Correlation .166* .324** 1
Sig. (2-tailed) .019 .000
Seminars Pearson Correlation .134 .187** .635** 1
Sig. (2-tailed) .058 .008 .000
Case Studies Pearson Correlation .000 .088 .037 .325** 1
Sig. (2-tailed) .995 .216 .605 .000
Informal Pearson Correlation .120 .107 .058 .215** .649** 1
Learning Sig. (2-tailed) .091 .133 .412 .002 .000
Job Pearson Correlation .002 .105 .207** .239** .302** .370** 1
Instruction
Sig. (2-tailed) .972 .139 .003 .001 .000 .000
Employees’ Pearson Correlation .251** .311** .232** .367** .327** .384** .285** 1
Satisfaction Sig. (2-tailed) .000 .000 .001 .000 .000 .000 .000
Employees’ Pearson Correlation -.214** -.108 .034 .049 .138 .104 .156* .230** 1
Performance Sig. (2-tailed) .002 .126 .634 .491 .052 .142 .027 .001
Source: own processing

The results of the correlation study are shown in Table 3. which demonstrates the
relationship (correlation) between the training strategy and employee satisfaction. From
Table 3. it can be seen that there was a weak but significant positive correlation between
Management Dynamics in the Knowledge Economy | 39
Vol.11 (2023) no.1, pp.30-47; DOI 10.2478/mdke-2023-0003

coaching and employees’ satisfaction (r = 0.251, p = 0.000); job rotation and employees’
satisfaction (r = 0.311, p = 0.000); special tasks and employees’ satisfaction (r = 0.232, p =
0.000); seminars and employees’ satisfaction (r = 0.367, p = 0.000); case studies and
employees’ satisfaction (r = 0.327, p = 0.000); informal learning and employees’
satisfaction (r = 0.384, p = 0.000); job instruction and employees’ satisfaction (r = 0.285**,
p = 0.000).

Table 3. shows the relationship (correlation) between training methods and employees’
performance. In the case of a commercial bank: there is an inverse relationship between
coaching and employees’ performance (r = -.214, p = 0.002) and between job rotation and
employees’ performance (r = -.108, p = 0.126). The tables also show that there is no
significant relationship between special tasks and employees’ performance (r = 0.034, p =
0.634); seminars and employees’ performance (r =0.049, p = 0.491); case studies and
employees’ performance (r = 0.138, p = 0.052); and informal learning and employees’
performance (r =.104, p = 0.142). It is found that there is a weak but significant positive
correlation between job instruction and employees’ performance (r = 0.156, p = 0.027)
and between employees’ satisfaction and employees’ performance (r = 0.230, p = 0.001).

Regression analysis

Table 4. shows the model summary, which represents two models: Model 1 shows the
value of job satisfaction, and Model 2. depicts the value of employee performance.

Table 4. Model summary


Std. Change Statistics
Adjusted
R Error of R
Model R R Sig. F
Squared the Squared F Change df1 df2
Squared Change
Estimate Change
1.(Employee
.544 .296 .270 12.053 .296 11.527 7 192 .000
Satisfaction)
2.(Employee
.439 .193 .163 3.109 .193 6.549 7 192 .000
Performance)
Source: own processing

From the regression calculation, it has been found (model 1) that the value of R2 is 0.296,
which implies employees’ satisfaction might be changed by 29.6% by the methods of
training and development and the adjusted R2 (0.270), which is near R2 (0.296) in the
commercial banks in Bangladesh. Again, the result of model-2 shows that the value of R2
is 0.193, which implies employees' performance might be changed by the methods of
training and development, and the adjusted R2 (0.163) is also close to R2 (0.193) in the
commercial banks in Bangladesh.

Table 5. Coefficients
Unstandardized Standardized 95% Confidence
Coefficients Coefficients Interval for B
Model t Sig.
Lower Upper
B Std. Error Beta
Bound Bound
(Constant) 72.686 10.516 6.912 .000 51.945 93.427
Coaching 1.617 2.533 .056 .638 .524 -3.380 6.614
Satisfaction
Employee

Job
5.571 2.586 .197 2.155 .032 .471 10.671
Rotation
Special task -.992 1.888 -.045 -.526 .600 -4.716 2.731
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The Effect of Training and Development Methods on Employee Satisfaction and Performance in
Commercial Banks

Seminars 5.164 1.708 .261 3.024 .003 1.796 8.532


Case Studies 0.831 1.764 .041 .471 .638 -2.648 4.311
Informal
5.033 1.794 .235 2.806 .006 1.496 8.571
Learning
Job
2.401 1.440 .112 1.668 .097 -.438 5.240
Instruction
(Constant) 18.072 2.712 6.663 .000 12.722 23.421
Coaching 0.051 .653 .007 .078 .938 -1.238 1.340
Job Rotation 1.161 .667 .170 1.741 .083 -.154 2.476
Employee Performance

Special task 0.810 .487 .153 1.663 .098 -.150 1.770


Seminars 0.651 .440 .136 1.479 .141 -.217 1.520
Case Studies -.414 .455 -.084 -.911 .364 -1.312 .483
Informal
1.024 .463 .198 2.214 .028 .112 1.937
Learning
Job
0.457 .371 .089 1.231 .220 -.275 1.189
Instruction
Source: own processing

Model-1: Coefficient analysis shows the relationship between the dependent variable and
each independent variable. Y=α +β1X1+β2X2+β3X3+ β4X4+β5X5+……………. βnXn
Y=α+β1X1+β2X2+β3X3+ €
Y=72.686+ 1.617X1+ 5.571X2+(-.992) X3+5.164X4+ 0.831X5+ 5.033X6+2.401X7+ €

In table 5, it is shown that the constant value is 72.686. The value of the unstandardized
coefficients (β1) of the coaching method is 1.617, which means employees’ satisfaction
can be impacted by the change in the 1 unit coaching method of training and development.
The value of the unstandardized coefficients (β2) of the job rotation method is 5.571,
which means employees’ satisfaction can be impacted by 5.571 by 1% and might be
changed by the job rotation method of training and development at a 1% level of
significance. The value of the unstandardized coefficients (β3) of the special task method
of training and development is (-.992), and it implies employees’ satisfaction can be
impacted (-.992) by a 1% change in the special task method of training and development
at a 5% level of significance. The value of the unstandardized coefficients (β4) of the
seminar’s method is 5.164, and it implies that employees’ satisfaction can be impacted by
5.164 by a 1% change in the seminar's method of training and development. The value of
the unstandardized coefficients (β5) of the case studies method is 0.831, and it implies
that employees’ satisfaction can be impacted by a 1% change in the case studies method
of training and development. The value of the unstandardized coefficients (β6) of the
informal learning method is 5.033, which means that employees’ satisfaction can be
influenced by 5.033 by 1% by the informal learning method of training and development.
The value of the unstandardized coefficients (β7) of the job instruction method is 2.401,
and it implies that employees’ satisfaction can be impacted by 2.401 by 1% of the job
instruction method of training and development.

Model-2: Coefficient analysis shows the relationship between dependent variable and
each independent variable. Y=α +β1X1+β2X2+β3X3+ β4X4+β5X5+……………. βnXn
Y=α+β1X1+β2X2+β3X3+β4X4+ β5X5+ €
Y=18.072+0.051X1+1.161X2+ 0.810X3+ 0.651X4+ (-.414) X5+ (-.171) X6+ 1.024X7+ €

From table 5, it is shown that the constant value is 18.072, the value of the unstandardized
coefficient (β1) of the coaching method is 0.051, and it implies that employees’
performance can be changed by 0.051 by a 1% level of coaching method training and
Management Dynamics in the Knowledge Economy | 41
Vol.11 (2023) no.1, pp.30-47; DOI 10.2478/mdke-2023-0003

development. The value of the unstandardized coefficients (β2) of the job rotation method
is 1.161, and it shows that employees’ performance can be changed by 1.161 by a 1% level
of job rotation method training and development at a 1% level of significance. The value
of the unstandardized coefficients (β3) of the special task method of training and
development is 0.810, which proves that employees’ performance can be changed by
0.810 by a 1% level of the special task method of training and development at a 5% level
of significance. The value of the unstandardized coefficients (β4) of the seminar’s method
is 0.651, and it implies that employees’ performance can be changed by 0.651 by 1% level
of the seminar's method of training and development. The value of the unstandardized
coefficients (β5) of the case studies method is (-.414), and it implies that employees’
performance can be changed by 1% of the level of the case studies method of training and
development. The value of the unstandardized coefficients (β6) of the informal learning
method is 1.024, which implies that employees’ performance can be changed by 1% of the
informal learning method of training and development. The value of the unstandardized
coefficients (β1) of the job instruction method is 0.457, which means that employees’
performance can be changed by 0.457 by 1% of the level of the job instruction method of
training and development

Table 6. ANOVA
Mean
Model Sum of Squares df F Sig.
Square
Employee Satisfaction Regression 11721.523 7 1674.503 11.527 .000a
(H1) Residual 27892.352 192 145.273
Total 39613.875 199
Employee Regression 443.008 7 63.287 6.549 .000a
Performance Residual 1855.472 192 9.664
(H2)
Total 2298.480 199
Source: own processing

Table 6. shows that the result of employee satisfaction (H1) is 11721.523, the regression
value is 27892.352, and the F-test value is 11.527. The P-value of employees’ satisfaction
is 0.000 (p 0.01/0.05), which implies that the null hypothesis is rejected and the
alternative hypothesis is accepted.

Again, the table 6. shows the results of the employees’ performance (H2) among the
respondents; the value of regression is 443.008, the value of residual is 1855.472, and the
value of the F-test is 6.549. The P-value of employees’ performance is 0.000 (p 0.01/0.05),
which implies that the null hypothesis is rejected, and the alternative hypothesis is
accepted.

Table 7. Summary results of the hypotheses


Hypothesis Result
H1: There exists a positive impact of training and development methods on Strongly
employees’ satisfaction in the commercial in Bangladesh. supported

H2: There exists a positive impact of training and development methods on Strongly
employees’ performance in the commercial in Bangladesh. supported

Source: own processing

Table 7. shows the summary of the results of the hypotheses. Two hypotheses have been
stated, and both have been accepted. The first hypothesis (H1) is that there is exists a
42 | Serena AKTAR
The Effect of Training and Development Methods on Employee Satisfaction and Performance in
Commercial Banks

significant positive impact of the selected most important methods of training and
development on the employees’ job satisfaction of from the commercial banks in
Bangladesh. The second hypothesis (H2): there exists is a significant positive impact of the
selected most important methods of training and development on the employees’ job
performance of from the commercial banks in Bangladesh. This has been proved by the
results of the ANOVA, suggesting there is an impact of training and development methods
on employees’ satisfaction and performance in commercial banks in Bangladesh.

Conclusion

The personnel of commercial banks have been required to carry out a wide range of
official tasks and activities. Some of them involve dealing with software, while others are
administrative tasks, but all of them involve dealing with money. Anyone who performs
poorly may generate the risk of losing a significant sum of money. Employees must
therefore be top performers who are cautious, skilled, and have long stamina and
dexterity when it comes to transferring money. They should be skilled, and training and
development plays an important role.

The main focus of this study was to identify the impact of training and development
methods on employees’ satisfaction and performance in commercial banks in Bangladesh.
In this present study, it has been identified that the seven most popular training and
development methods have been used very frequently by the commercial banks in
Bangladesh. These seven methods were determined through interviews with employees
who had been with the company for more than five years. After that, the researcher tried
to examine the impact of these seven methods of training and development on job
satisfaction and employees’ performance in the commercial banks in Bangladesh. It has
been revealed that employees of commercial banks prefer job rotation, seminars, and
informal learning methods of training and development for increasing their job
satisfaction, but they tend to adhere to more o informal learning that has a positive,
significant impact on their work performance.

Managerial implication

The current study investigated the effects of several training techniques on performance
and employee satisfaction. Work rotation, seminars, and informal training are some
training techniques that have a good effect on employee satisfaction. Additionally,
respondents mentioned that they love exercising as a kind of leisure to escape the
boredom and stress of their jobs. However, it raised their workload to the point that they
had a set number of clients or files to manage. They viewed their training as a waste of
time if they had monotonous or repetitive jobs, like cashiers. The current study
investigated how different training methods affected performance and worker
satisfaction. Employee happiness is positively impacted by training strategies such as
work rotation, seminars, and informal training.

Limitation of present study and suggestions further research

There are two drawbacks of this study. It is initially restricted to seven training and
development approaches. Only Bangladesh's private commercial banks have been taken
into account. Numerous methods that are described in various books and studies can be
taken into consideration for future research projects. Exploring other industries will be a
significant area for further research, including medicines, insurance, ready-to-wear
clothing, information technology, and educational institutions locally and/or nationally. It
is advised to apply additional statistical tools to investigate how training and development
Management Dynamics in the Knowledge Economy | 43
Vol.11 (2023) no.1, pp.30-47; DOI 10.2478/mdke-2023-0003

strategies affect workers' job satisfaction and productivity. Due to a lack of extensive
literature, the researcher was unable refer a lot to earlier research studies; however, this
research could be an important source of literature for subsequent research studies.

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