CHAPTER 2

REVIEW OF LITERATURE

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2.1 INTRODUCTION

The main aim of the study is to understand the level of effectiveness of training and
development programs among employees. This chapter provides and overview about the
previous research related to the topic or knowledge sharing. It introduces the framework for
the case study that comprises the main focus of the research described in this thesis. Keeping
this acting mind, an attempt has been made to make a brief summary of the previous work
undertaken related field of the present study. It is helped for a convinced and the planned
approach in conducting the study, some of the them are as follows.

● Nwaeke Onyebuchi Obiekwe (2017) examined the impact of manpower training and
development on organizational productivity. The paper observed that improved
productivity, effectiveness and efficiency of organizations depend mainly on skills,
attitudes, knowledge and competencies of their employees which are being generated
mainly through training and development. The paper noted that the main objective of
employee training and development is to develop employee skills, knowledge and
competencies which are vital in the enhancement and promotion of organizational
effectiveness, productivity and profitability, as well as in the development of some
competitive edge over competitors. Training and development are based on the
premise that the attitudes, skills, behaviors, capabilities and competencies of
employees need to be improved in order to achieve organizational set goals and
objectives. The purpose, importance and some methods of employee training and
development, as well as factors affecting training were discussed. Based on the
review and discussion made, conclusions and recommendations which aim at
improving organizational productivity and performance were made with regard to
employee training and development.

● According to Edwin B Flippo (1984) “training is the act of increasing the

knowledge and skills of an employee for doing a particular job.” Effective training &
development intensifies the knowledge, understanding, skills, behavior & attitudes of
the employees and consequently their performances. The enhanced performances of
individuals lead unswervingly towards profit as well as positive results. Training &

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 development gives a comprehensive, satisfying and adequate return on investments. It
helps in connecting the training purpose with actions which are beneficial for
organizations ’activity. The investment is for mounting and maintaining the skills of
the employees needed for working according to the strategy of the organizations.
Resembling every investment, investment for training & development produces an
effectual reimbursement. For creative, motivated highly competent and productive
workforce there is a need for investments in training and development programmes,
as organizational performance is absolutely dependent on employees performance.
This study is basically a causal study where cause and effect relationship is
investigated by independent variable i.e., training programmes and dependent
variable i.e., employee performance. The training programme has been categorized
into training methods and training design whereas employee performance under task
and contextual performance. Respondents comprised of 171 Employees of State bank
of India from Lucknow city. The respondents have been randomly selected and place
of data collection is chosen according to convenience. Analysis of data has been done
through inferential statistics, correlation & Multiple regression. For reliability of data,
Cronbach alpha has been applied. The results of the study revealed that sub-variables
of training & development programmes which are training design and training
method have shown a significant impact on the task as well as a contextual
performance which are sub-variables of employee performance. It is further
suggested that in order to take full advantage of the usefulness of training, banks
should regularly assess their employees’ training & development requirements as
diverse employees call for dissimilar pieces of training & development. It is
important for every organization to accomplish planned goals and for the
achievement of goals the training requirements should be planned as well as delivered
in most scientific manner. Furthermore, there should be the willingness of
participants to go through the training.

● Imran Raza (2015) made a study to determine the impact of training and
development programs on employee performance. The research work of this study
has been divided into three parts. The first part gives a literature review of the work
done by researchers in the past to elaborate the importance of training and
development programs. Besides this, the scope of this study, methodology used in

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 research and core research objectives have been stated under this section. The second
part emphasises on different training models and structures designed and used around
the world during training and development programs. Research questions have been
discussed in more detail to develop an understanding of a general training process,
from the requirements of training to its execution and results. The last part is the
empirical case study of the subject organisation to collect the data and analyse it. The
Correlation analysis and Percentage Distribution analysis has been employed in the
statistical analysis of data obtained through a survey done in Salt’n Pepper Pvt. Ltd.
Lahore. The research reveals that training and development is unquestionably
necessary especially for the unskilled and less experienced employees. Training
methods and tools utilised by the company were very effective as these tools have a
positive impact on the employee’s job performance and also helped them to enhance
and improve their skills and job efficiency. The company is also making further
improvements in the training programs to increase the effectiveness of the training.

● Abd Hair Awang, Rahmah Ismail & Zulridah Mohd (2010) studied that nurturing
a high-quality, knowledgeable and innovative human capital with strong moral and
ethical values has become a new source of driving the nation's productivity growth
and competitiveness. Therefore, Human Resource Development Council (HRDC)
was established in 1992 to generate lifelong learning in workplace setting to improve
labor productivity, technology transfer and innovation. In 2002 it was renamed as
Human Resource Development Limited (HRDL). All registered employers with
HRDL are eligible for the employees training grants. The total approved training
places and disbursement of training grants had increased over the years. This paper
investigates to what extent the training programs improve employee knowledge, skills,
works behavior and job performance, and what are the significant training related
factors influencing job performance. The paper is based on data collected through
self-reported survey on 1200 employees (458 responded) at hotels, resorts and ICTs
companies in four selected states. Out of the responses, 73 percent attended various
training programs coordinated by HRDL. The result shows that, in general, the
training programs improve knowledge, skills and positive work behavior of
employees. Multiple linear regression analysis supports the hypothesis that training

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 related variables have positive impact on employees' job performance except
cognitive competence.

● Ashikhube Humphrey Otuko (2013) explained the effect of training dimensions on

employee performance, a case of Mumias Sugar Company, Kenya. The study sought
to find out; the effects of training needs assessment on employee performance, the
effects of Training contents on employee performance and the effects of Training
evaluation on employer performance. The study targeted a total of 150 employees and
6 departmental heads Questionnaires and interview schedules were used. The
departmental heads were selected using purposive sampling while the employees
were selected through simple random sampling. The researcher used content validity:
internal consistency was achieved through the use of a Cronbach's Alpha coefficient
which yielded an alpha of 0.86 implying that the instruments were reliable. The
researcher then analyzed the data using descriptive and inferential statistical where
regression analysis was used to establish the associations of the study variables.
Results show that there was a positive and significant effect between training needs
assessment and employee performance in Mumias Sugar Company Limited. Training
contents has a positive and significant effect on the employee performance in Mumias
Sugar Company Limited and training evaluation and employee performance were
positively and significantly .

● S. Mufeed Ahmad & Urfana Amin Moharken (2018) the study aims to analyzes
the impact of Training and Development practices on the performance of government
school teachers of four districts (Kathua, Reast Pulwama and Ganderbal) of Jammu
and Kashmir. The study adopts descriptive research design imbibing both primary
and secondary data with sample size of 300 teachers (75 teachers from each district).
Convenience sampling method has been applied for collecting the data through a
structured questionnaire. Statistical tools like Pearson Correlation Analysis,
Regression Analysis and ANOVA were applied for the study and concludes, Training
and Development Practices have a positive influence on the performance of teachers
in Jammu and Kashmir. The outcomes of this research will help education sector to
identify the Training and Development factors that influence the employees working
at various levels. On the other hand, the research will be helpful to the human

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 resource section of School Education so as to increase the productivity and efficiency
of their teachers.

● Pallavi Pahuja & Parinita Malhotra (2017) research suggest that in this
competitive world, training plays an important role in the competent and challenging
format of business. Training is the nerve that suffices the need for fluent and smooth
functioning of work which helps in enhancing the quality of work life of employees
and organizational development too. Development is a process that leads to
qualitative as well as quantitative advancements in the organization, especially at the
managerial level, it is less considered with physical skills and is more concerned with
knowledge, values, attitudes and behaviour in addition to specific skills. Hence,
development can be said as a continuous process whereas training has specific areas
and objectives. So, every organization needs to study the role, importance and
advantages of training and its positive impact on development for the growth of the
organization. Quality of work life is a process in which the organization recognizes
their responsibility for excellence of organizational performance as well as employee
skills. Training implies constructive development in such organizational motives for
optimum enhancement of quality of work life of the employees. These types of
training and development programs help in improving the employee behaviour and
attitude towards the job and also uplift their morale. Thus, employee training and
development programs are important aspects which are needed to be studied and
focused on. This paper focuses and analyses the literature findings on importance of
training and development and its relation with the employees' quality of work life.

● Salau Odunayo Paul & Abasilim Ugochkwa David (2014) noted that the rise and
fall of many organizations is a reflection of how adaptive, flexible, and focused they
are with the changing pattern. The rapid change in technological innovation and
advancement has become an indispensable means for organization to equip their
employees with the required skilled, knowledge and abilities which are acquired
through consistent training to stand against competitive forces. However, this study
has examined how best training can be used to reduce waste, incessant level of
industrial accidents, lateness to work, fatigue, and absenteeism in order to ensure the
survival and growth of the banking industries. The survey design was adopted.

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 Questionnaire was used the major source of data collection. A sample size of one
hundred and eighty five (185) staff and management of the selected banks in Lagos
metropolis. While the Correlation Analysis and chi square were adopted using
Statistical Package for Social Sciences. The findings revealed that employees training
significantly influences organizational effectiveness though some of these banks
failed because they send their employees on a training programme when they do not
have the machines or equipment which they can use to practice when they return from
such a training. Without a commitment from management, training will be nothing
more than

● Julius Okechukwu Anyanwa (2016) carried out a study on the concept of training
and employee development that was vague in the minds of managers and employers
in times past. Training and employee development is a scheme to catch the growth
and development of modern management techniques. This research work was aimed
at ascertaining the impact of training and employee development on organization and
worker's performance Fifty questionnaires were distributed and retuned Simple
percentages techniques were used to analyze the data, while Regression Analysis was
used to test the hypotheses. It was discovered that training improves productivity and
that training and development of workers do improve productivity. Also training and
employee development manifests in the following conditions; high productivity, low
wastages, low accident rate: low union dispute etc. It was concluded that the
government need to inject more fund in training and re-training of employees for
optimum productivity. It was finally recommended that techniques that would be
easily understood by trainees should be used and they should be exposed to different
methods, and equipment. Similarly, all training and employee development should
center on the achievement of the individual and organizational needs.

● Muhammad Imran & Aiman Tanveer (2015) carried out a study taking into
consideration the significance of both Training & Development (T&D) and Employee
Performance for the businesses at all levels and in all sectors, Banking sector is
chosen as representative due to its backing up role in the economy of any country. It
is most crucial for services businesses to keep their employees' knowledge and
competencies up to the mark because of the global saturation occurring in services.

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 Economies are becoming services led so competition is being added up and
strengthened by leaps & bounds In such a situation, it becomes of prime concern for
the organizations particularly servicing organizations like banks to capture new
knowledge for serving competitively, store & preserve this knowledge, and then
deliver it to the employees using some organized & methodical approach Now what
such an approach could be other than designing strategic and well suited T & D
programs. Taking an account of all this, a descriptive & quite explanatory approach is
being chosen to carry out a study for checking out the impact that T & D has on the
performance level of employees working in the banks of Pakistan. Three objectives
were designed for the study; assessment of current practices, impact check, and
proposition for better investment into T & D This has been done selecting six
representative banks of Bahawalpur (Bank Alfalah Limited. Muslim Commercial
Bank, Habib Bank Limited. Allied Bank Limited, National Bank of Pakistan, and
Bank of Punjab) as sampling unit. Employees in these banks were given a structured
questionnaire that was designed to particularly measure the influence of T&D on
respondents" skills like Job knowledge, work quality & quantity, functional skills,
and their motivation & loyalty. Data collection was done taking sample size of 150
employees while receiving 104 valid responses using convenience & referral
sumpling. Analysis was done through the application of frequency tests & bar charts
on the response rates in SPSS. This gives the study a quantitative and empirical
direction for results. So, then we checked the influence of T & D on the skills and
attitudes mentioned above for associating these to employee performance level in
banks of Pakistan as presented in the conceptual model. Major findings were that
most of the employees agreed to the item statements by making it clear that T&D had
a positive impact on their Job knowledge, work quality & quantity, functional skills,
and their motivation & loyalty and these are all linked to their performance either
strongly or moderately but in a supporting direction. Hence, the study concluded up
with T&D positively impacting the employees' performance in the banks of Pai

● Philipina Ampomah (2016) carried out a study focused on the effect of training and
development on employee performance in a private tertiary institution in Ghana; a
case study of Pentecost University College. The study used the simple random
sampling technique to select staff from all levels of management. A high response

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 rate of ninety-six percent was obtained using the personal method of data collection,
based on which the analysis was made using the frequency tables and charts. The
study found out that employees are aware of the purpose of training in the
organization, the training objectives are clear to them before the training as well as
the selection criteria. The study also found out that employees are motivated through
training; and training and development results into higher performance. The study
recommended that training and development of all staff should be vigorously pursued
and made compulsory.

● Ganesh M. & Dr. R. Indradevi (2015) The paper intends to review the literature on
Training & development. It proposes to explore the importance & effectiveness of
Training & development at a Private University. The paper proposes an empirical
study on importance & effectiveness of Training & development through a survey on
Deans/Sec Heads who in turn evaluate the Staffs at work. Training and development
plays an important role in the effectiveness of organizations and to make experienced
people do work effectively & effectively. It is said that training has implications for
productivity, commitment to the work and personal development. All corporate /
companies must train people and develop their staff. Most of the organization are
aware of this requirement and make invest and do many things for training and
development. The training which we give to the staff may be technical training or soft
skills / behavioral training. It is also said making investment in training and
development in companies in generally said to be as good management practice and
to maintain appropriate expertise in the particular field and in future too. The
objective of the research paper is to collect and analyze data regarding the importance
and effectiveness of training. The research will enable us to identify the training
importance & effectiveness.

● Mihir Dilip Kalambi (2015) focus on the training and development needs of an
organization. Over the years the economy has become more volatile and competitive.
In order to sustain this competition and produce timely customer oriented results
organizations must be trained so that they are able to deliver effectively. The
importance of an employee training and development program is growing for those
organizations who are pursuing to receive an added advantage among the competitors.

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 Factors of production such as land labour enterprise are all secondary, in comparison
to the labour which is considered the esteemed resource for an organization's success
or failure. In a bid to survive this cut throat completion and to enrich the
labour/employee force, most of the companies today are engaging in large scale
employee training programs. Organizations are willing to go one step ahead and
finance large amount on the employee training and professional growth. By helping
to establish employee investment, reciprocity identification, and limiting alternative
employee options, effective training program can lead to a greater commitment and
reduce the attrition rate. The training programs are supportive not only towards the
organization but it also helps to increases the knowledge, expertise and abilities of an
employee. The study therefore describes a vigilant assessment of literature on the
fundamental concept of the importance of training and development programs to its
organization as well as to its employees.

● According to Cole (2002) the foundation stone for human resources management is
training as it can be of immense benefit to the organization and individuals. in the
short and long term. Some of the benefits from employer training are: firstly,
enhances and increases the quality and ability of employees toward work related tasks,
and eventuallyachieve change management for instance, increasing new skills and
information which lead to better understanding among employees. Secondly, training
program provides the possibility for employees to upgrade their allowances, including
enhanced safety and security at the workplace which could lead to reduced employee
turnover. Thirdly, one of advantages of training is the reduced cost and time because
a well-trained employee will be able to achieve tasks within a shorter period of time
and with minimum cost. Finally, training helps employees to enhance their morale
and motivate them to perform tasks easily.

● Brown (2002) noted that needs assessment in training is fundamental and should be a
continual process in order to determine the types of training which can help an
organization to achieve its goals as compared to some organizations which implement
training directly without needs analysis which usually leads to spent cost and time but
without attaining the actual benefits of training. The following statements below can
answer the question as to why needs analysis is important for human resource

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 management and must be conducted before training programs. Firstly, focus on the
weaknesses in the organization. Needs analysis can help identify these problems and
thereby makes it easier to identify appropriate training to achieve specific target
situations rather than random training. Secondly, to provide comprehensive
information on needs. Most trainers conduct a needs evaluation before a training
program with the aim of providing effective training.

● Aidah Nassazi (2013) The purpose of the thesis was to evaluate the effects of
training on employee performance, using the telecommunication industry in Uganda
as case study. In order to understand the study aim, four goals were developed and
these focused particularly on identifying the training programs existing in the industry,
the objective of the training offered, the methods employed and finally the effects of
training and development on employee performance. The study was based on three
case studies of the biggest telecommunication companies operating in Uganda. A
qualitative research approach of the data collection was adopted using a questionnaire
comprising 18 questions distributed to 120 respondents. Based on this sample the
results obtained indicate that training has a clear effect on the performance of
employees. The findings can prove useful to Human resource managers, Human
resource policy decicision makers, as well as government and academic institutions.

● Harrison Rosemary (2005) ensures that training and development reduces randomness
and a learning or behavior change takes place in structured format. In the field of
human resource management, training and development is the field concerned with
organizational activity in the Tibetan the performance of individuals and groups in
organizational settings. It has been known by several names, including employee
development, human resource development, and learning.

● According to Casse and Banahan (2007) the different approaches to training and
development need to be explored. It has come to their attention by their own preferred
model and through experience with the large organizations. The current traditional
training continuously facing the challenges in the selection of the employees, in
maintaining the uncertainty related to the purposes and introducing new tactics for the

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 environment of work and organizing this, they advising on all the problems, which
reiterates the requirement for flexible approaches.

2.2 CONCLUSION AND RESEARCH GAP

The research review purpose is to help the reader to understand different aspects posed by the
process on Training and Development. There has been much research and discussion
conducted on this topic. Most of the research found was on the training and development in
banking sectors, HR department etc. The analysis of the literature review revealed that there
is a gap in research problems. The identified gap is that there is no study conducted regarding
the training and development program with the special reference to MRF Tyres limited
Kottayam. The aim of this paper is to fill this gap.

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