IMPACT OF TRAINING AND DEVELOPMENT ON

PERFORMANCE OF EMPLOYEES IN NEPALESE

DEVELOPMENT BANKS

A Project Work Report

By
SANJITA TAMANG
TU Registration No:7-2-286-70-2019
Symbol No. : 702860046
Group : Finance
MARSYANGDI MULTIPLE CAMPUS

Submitted to
The Faculty of Management
Tribhuvan University
Kathmandu

In Partial Fulfillment of the Requirement for the Degree of

Bachelor of Business Studies (BBS)

Lamjung, Nepal
July, 2024
 Declaration

I hereby declare that the project work entitled ‘‘Impact of Training and Development
on Performance of Employees in Nepalese Development Banks’’ submitted to the
Faculty of Management, Tribhuvan University, Kathmandu is an original piece of work
under the supervision of Dr. Padam Bahadur Rawat faculty member of Marshyangdi
Multiple Campus, Lamjung, Nepal and is submitted in partial fulfillment of the
requirements for the degree of Bachelors in Business studies (BBS). This project work
report has not been submitted to any other university or institution for the award of any
degree or diploma.

…………………
Sanjita Tamang
Date :

ii
 Supervisor’s Recommendation

The project work entitled ‘‘Impact of Training and Development on Performance of

Employees in Nepalese Development Banks’’ submitted by SANJITA TAMANG of
MARSHYANGDI MULTIPLE CAMPUS is prepared under my supervision as per
the procedure and format requirements laid by the Faculty of Management, Tribhuvan
University, as partial fulfillment of the requirements for the degree of Bachelors in
Business Studies (BBS). I, therefore recommend the project work report for evaluation.

…………………….
Dr. Padam Bahadur Rawat
(Supervisor)
Marshyangdi Multiple Campus
Date :

iii
 Endorsement

We hereby endorse the project work report entitled ‘‘Impact of Training and
Development on Performance of Employees in Nepalese Development Banks’’
submitted by SANJITA TAMANG in partial fulfillment of the requirement for the
requirements for the degree of the Bachelors of Business Studies (BBS) for external
evaluation.

…………… ………………
Dr. Padam Bahadur Rawat Mr. Hari Babu Thapa
Chairman, Research Committee Campus Chief
Date : Date :

iv
 Acknowledgement
This report entitled ‘‘Impact of Training and Development on Performance of
Employees in Nepalese Development Banks’’ has been prepared in the form as
required by the institute of management for the reward of degree of Bachelor of
Business Studies (BBS).

This study is has not been finished overnight or with a single attempt. It took a lot of time
and effort to this project to come to the end. This particular fieldwork is a joint effort and
commitment of various individuals. Due to the limited time frame, it was really a tough job
and it would be dishonest not to acknowledge all the beneficiaries associated with this
study amid the study period.

I have great pleasure to express my heartiest gratitude and sincerity to my report advisor
Dr. Padam Bahadur Rawat, who guided me throughout this research providing
valuable direction, useful suggestions, comments and references during the course of
preparing this report.

I will further like to express my gratitude towards all the members of respective banks
for making it easy and possible to get the required data in the short period of time. I
heartily thank them for providing me their precious time. It would be injustice to disregard
their commitment. And lastly I would like to thank my parents and dear friends for helping
me out and encouraging me to get this project through.

Thank You
Sanjita Tamang

v
 Table of Contents
Title page…………………………………………………………………………………….…….i
Declaration.......................................................................................................................ii
Supervisor’s Recommendation........................................................................................iii
Endorsement....................................................................................................................iv
Acknowledgement.............................................................................................................v
Table of Contents.............................................................................................................vi
List of Tables.................................................................................................................viii
List of Figures..................................................................................................................ix
Abbreviations....................................................................................................................x
CHAPTER - I....................................................................................................................1
INTRODUCTION.............................................................................................................1
1.1 Background of the Study.........................................................................................1

1.2 Objectives of the Study...........................................................................................3

1.3 Rationale of the Study.............................................................................................3

1.4 Review of Literature................................................................................................3

1.5 Research Methodology............................................................................................8

1.5.1 Research Design...................................................................................................9

1.5.2 Population and Sample, and Sampling Method...................................................9

1.5.3 Nature and Sources of Data, and Instrument of Data Collection.........................9

1.5.4 Method of Analysis..............................................................................................9

1.5.5 Research Framework and Definition of the Variables.......................................12

1.6 Limitations of the Study........................................................................................12

CHAPTER-II...................................................................................................................13
RESULTS AND DISCUSSION.....................................................................................13
2.1 Results...................................................................................................................13

2.1.1 Demographic Data Analysis...........................................................................13

2.1.2 Summary of Descriptive Analysis..................................................................14

2.1.3 Correlation Analysis.......................................................................................14

vi
 2.1.4 Multiple Regression Analysis.........................................................................15

2.2 Major Findings......................................................................................................17

CHAPTER –III................................................................................................................18
SUMMARY AND CONCLUSION................................................................................18
3.1 Summary................................................................................................................18

3.2 Conclusion.............................................................................................................18

REFERENCES................................................................................................................20
APPENDIX.....................................................................................................................22

vii
 List of Tables

Page No.
Table 1 Demographic Specification............................................................................ 13
Table 2 Summary of Descriptive Analysis ................................................................. 14
Table 3 Pearson Correlation between Variables .........................................................
15
Table 4 Model Summary ............................................................................................ 15
Table 5 Analysis of Variance (ANOVA).................................................................... 16
Table 6 Regression Coefficient of Independent Variables with Performance ............
16

viii
 List of Figures

Page No.
Figure 1 Research Framework of the Study ................................................................ 12

ix
 Abbreviations

ATM : Automated Teller Machine

EP : Employee Performance
IBM : International Business Machine Corporation
JS : Job Satisfaction
MS. DO : Microsoft Disk Operating System
No. : Number
Res : Respondents
RS : Responsiveness
SEM : Structural Equation Modeling
SPSS : Statistical Package for Social Sciences
T.U. : Tribhuvan University
TC : Training Content
TM : Training Method
TNA : Training Need
Assessment WHO : World
Health Organization www :
World Wide Web

x
 1

CHAPTER - I
INTRODUCTION

1.1 Background of the Study

Individuals think highly of lifelong learning because it gives workers the skills and
information they need to prosper in an increasingly linked society. Companies with a
learning culture will prosper because they can adapt to the ever-changing business
environment. Businesses must recognize their areas of strength in the present
competitive landscape in order to get an advantage over rivals. Human capital is an
organization's most important resource for surviving this intense competition and
attaining long-term success. In order for the organization to be successful, it must
ensure that it obtains and maintains the skilled, committed, and highly motivated
human resources that it needs, as well as that it recognizes and seizes its opportunities
for development (Bunch, 2007).

Employee training is a strategy employed by development banks to better prepare

their workforce for the aforementioned increases and improve performance in light of
the growing competition they face from globalization, technological advancements,
and fluctuating political and economic environments. The enormous proof of
knowledge expansion in corporate businesses during the last ten years cannot be
disregarded. Technological developments, a convergence of production elements, and
greater attempts to fortify organizational human resources have all contributed to this
expansion. Therefore, it is the responsibility of every organization to enhance
employee work performance. For most of them, implementing training and
development programs is a critical first step toward accomplishing this objective.
Employees are a valuable resource, thus it's critical to maximize their contribution to
the company's objectives in order to maintain high performance. Thus, managers need
to ensure that there is a sizable enough pool of workers possessing the interpersonal
and technical abilities required to advance into management or specialized
departments (Kempton, 1995).

Organizations frequently invest a significant amount of time, money, and effort in

employee training and development activities, which are typically not appreciated by
 2

their employees and are perceived as a burden rather than an opportunity for
selfdevelopment and self-acquisition. As a result, training departments are under
constant pressure to embody the organizational values in the same ways. This resulted
in a less-than-ideal outcome where employee performance did not improve and the
organization's efforts were wasted.

Roger and Jim (2009) stated performance is a multifaceted construct whose

assessment is contingent upon a multitude of factors. Armstrong (2000), however,
stresses that while assessing a performance, both the conduct (input) and the
consequence (output) must be considered. Behavior and result are combined to
calculate performance. Performance is the abbreviation for both an individual and a
unit inside an organization. Apart from the external conditions that influence an
individual's conduct and personality, an organization also has control over all the
other factors that influence an individual's behavior and actions. Formal
communication significantly affects a person's management style and work ethics.

All aspects of an employee's performance are impacted by and correlated with their
work, either directly or indirectly. Conduct and result are the two components of
performance; behavior transforms performance from a concept into an action and
makes the performer visible. The real work that has to be done in the workplace at a
high performance work level is coordinated and integrated with the training. Training
in interpersonal communication and group dynamics is mandatory for employees. In
order for the business to function smoothly, all departments must comprehend how
they are interdependent and function as a cohesive one.

Organizations must manage and train their workforce to ensure that workers are ready
for any competition, no matter how challenging, and can adapt to any situation by
improving their performance in light of the constant changes in the political and
economic environment. A significant increase in knowledge, skills, and competencies
all crucial in the present corporate environment has occurred throughout the past ten
years. This expansion was driven by a number of industrial causes and technological
breakthroughs, but increased efforts in human resource development (HRD) also
played a role (Evans et al., 2002). This illustrates how essential training and
 3

development programs are to a company's capacity to outperform competitors within

the same sector.

1.2 Objectives of the Study

The general objective of the study is to investigate the factors that affect employees’
job performance in development banks of Nepal Kathmandu area branches. The
specific objectives of this study are as follows:
• To analyze the relationship between training & development and employee
performance in Nepalese development banks.
• To examine the training needs assessment affects employees’ job
performance.
• To evaluate the effect of training method and training contents on employees’
performance.
1.3 Rationale of the Study
Because of how dynamic the world is, management practitioners must stay current on
the best practices needed for both their particular sectors and themselves.
Organizations must provide ongoing training and development opportunities for their
staff if they are to continue progressing. Since the corporate climate and the
competition are always changing, it is important to continue learning and acquiring
new abilities.
Several groups would find the study to be important. Leaders and managers who get
the significance of training and development in evaluating individual performance and
gauging motivation will find value in the study. It would also help other businesses in
a cutthroat sector. Researchers and academicians in the same field will benefit from
the study's additional insights on the connection between employee performance at
Development Bank and training and development. Since participants would utilize the
study as a foundation for reference for any future research in the subject of training
and development, it would also add to the body of knowledge and research at the
institution.
1.4 Review of Literature
The literature study relevant to the effect of training and development on employee
performance in Nepalese development banks has been the main topic of this chapter.
Every study has a foundation of historical facts and knowledge, which serves as the
basis for the current investigation. This chapter has its own significance in this study
 4

since it aids in gathering sufficient feedback to expand the information base and
inputs into my research. The theoretical and empirical reviews take up this section.
Thapa's 2016 study examined the impact of training and motivation on employees'
performance in Nepalese commercial banks. The research involved 190 participants
from 20 banks and used questionnaires to test the significance of training and
motivation. Results showed that training and motivational elements, such as
workplace atmosphere, trainee attributes, on-the-job training, and reward structure,
positively impacted workers' output. Improved training and compensation also
improved performance. The study found a positive relationship between employee
performance, empowerment, and income.

The study by Dhakal (2016) investigated the impact of training on job satisfaction and
organizational effectiveness in Nepalese commercial banks. A survey of 250
respondents found a positive relationship between job satisfaction and organizational
effectiveness and training characteristics such as training need assessment, delivery
methodologies, commitment, and evaluation. Improved training delivery strategies
and a commitment to training resulted in increased job satisfaction and performance.
The study concluded that training improves organizational effectiveness and work
satisfaction, and that companies should assess training programs' efficacy.
Sthapit and Ghale (2018) investigated impact of training and development on
perceived employee performance: a case study of Agricultural Development Bank
Ltd. Through the use of a case study methodology, the study examined how training
and development (T&D) programs affected the perception of employee performance
with regard to Agriculture Development Bank Ltd. in Nepal. Using a structured
questionnaire based on the survey method, the study gathered data from February to
March 2018 on a sample of 112 employees (junior officers, assistants, and members
of the hierarchical strata) selected at random from a population of 185 using a
stratified sampling technique. The study found a statistically significant effect of T&D
constituents on the perceived performance of junior officers and assistant level
employees of the analyzed bank through the use of regression analysis and descriptive
statistics. The influence of attitude and behavior change was shown to be significant
among the four predictors (T&D constituents), but the impact of the other three
(training content and deliverability, instructional design, and skills, knowledge, and
ability development of employees) was not significant.
 5

Shantha (2019) analyzed the impact of training on employees performance in banking

sector: with special reference to bank of Ceylon in Sri Lanka. The current study
examined the effect of staff training on performance, specifically focusing on the
Bank of Ceylon's Ja-Ela Branch in Sri Lanka's Western Province. 389 workers were
chosen using a multi-phase sampling process. Four dimensions—Training Evaluation,
Learning Culture, Training Content, and Trainers were covered by the primary data
collection. Employee performance is the dependent variable, and it was assessed using
a structured questionnaire. Using Smart PLS software, the data were examined using
Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings
demonstrated that while learning culture and training evaluation did not significantly
correlate with employee performance, training material and trainers did. The results of
this study can help experts, managers, and policy makers in the human resources
sector create and implement plans pertaining to employee performance and training
programs.

Agboola et al. (2020) analyzed effect of training and career development on bank
employees’ performance: evidence from selected banks in Nigeria. Using a survey
research approach, this study looked at how training and career development affected
the performance of bank workers in Ijebu Ode, Ogun State, Nigeria. A prepared
questionnaire was given to the employees of the chosen banks in the area. The results
show that every variable significantly improved employee performance on its own.
The performance of Nigerian bank personnel is most impacted by individual career
growth. This was further confirmed by testing the combined effect of career
development and training on employees' performance using multiple linear regression,
which shows that only career development has a positive and significant effect on
employees' performance, while training has a positive but insignificant effect.
Training and professional development account for 39.8 percent of the variation in
employees' performance, according to the adjusted R2 (0.398). The results showed
that better career development and training programs often boost bank employees'
performance. Thus, it can be said that career advancement and training play a
significant role in determining how well bank employees perform.

Ali et al. (2021) examined the impact of training, development and performance on
employees’ performance in the banking sector of Pakistan. This study examined the
 6

connection between employee performance growth and training in Pakistan's South

Punjab banking industry. This is an empirical study, and for additional analysis, both
qualitative and quantitative methods will be applied. The banking industry will make
use of the main data source. Government and commercial banks are both essential to
Pakistan's economy. This review provides us with a means of evaluating the impact of
development and training on the company's success. How staff performance, growth,
and training can improve worker quality and serve as a source for improved services.
The discussion and conclusion demonstrate how the banking industry may function
more effectively through improved staff performance, development, and training. The
South Punjab region's economic circumstances improved as a result.

Cik et al. (2021) examined impact of training and learning organization on employee
competence and its implication on job satisfaction and employee performance of bank
in Indonesia. This study evaluated at how training and learning environments affect
employee competence, how work happiness is impacted by competence, and how
learning environments, training, competence, and job satisfaction all positively
correlated with employee performance. Employees from South Jakarta's five biggest
banks in Indonesia made up the study's population. One hundred thirty respondents
made up the sample that was chosen at random. The study's findings, which were
obtained using SEM and the AMOS program, demonstrated that learning and training
had a positive impact on employee competence, that competence had an impact on job
satisfaction, that learning organizations had a positive impact on employee
performance, that there was no discernible impact of training and competence on
employee performance, and that job satisfaction had a positive impact on employee
performance.

Daqar and Constantinovits (2021) analyzed the impact of training on banks employee
performance. The main objective of this research was to investigate how employee
performance in Palestine's banking sector is affected by training. Ten banks were
chosen for this study, and the core data for it were obtained from the permanent
employees of these banks in Palestine using a questionnaire specifically created to
meet the study's aims. While the study found no significant correlation between
employee performance and training design or content, the results did show a
significant relationship between training delivery and employee performance as well
 7

as a significant relationship between training material and employee performance. The

researcher advised banks to concentrate on providing training activities, handouts, and
content that is clear and easy to understand. Additionally, banks should think about
emphasizing training that facilitates employees' application and acquisition of a
variety of information and abilities, as well as giving clear instructions for all
activities and offering trainings that last a respectable amount of time.

Jeni et al. (2021) investigated the impact of training and development on employee
performance and productivity: an empirical study on private bank of Noakhali region
in Bangladesh. The main objective of the research was to investigate how training
affects workers' productivity, motivation, and job satisfaction in the banking industry
at the Private Bank of the Noakhali Region in Bangladesh. Using a self-administered
questionnaire, this study used stratified sampling to choose 60 individuals from a
population of 70 employees. The mean for off-the-job training and development was
found to be between 2.36 and 4.05. The mean for on-the-job training and development
was found to be between 3.23 and 4.4. From the point of view of private banking
sector personnel in the Noakhali region, the overall impact of training and
development has a mean and standard deviation of 3.54 and 0.95, respectively. The
findings of this study suggest that, from the viewpoint of private bank workers in the
Noakhali region, staff performance and productivity were significantly impacted by
training and development programs. The study's overall conclusions showed that, in
Bangladesh's private banking industry, training not only improves worker
performance but also has a favorable impact on motivation and job satisfaction.

Ogalo (2021) examined impact of training and development programs on employee

performance in the banking sector of Bahrain. Measuring the impact of training and
development on employee performance and satisfaction was the goal of the current
study. One mediating theory and three direct hypotheses in all were put forth. The
current study gathers data from a sample of 310 target respondents (bank workers) in
order to achieve the intended outcomes. Simple random sampling is used to choose
the sample. Using Smart PLS3.2.9, the model is evaluated using the structural
equation modeling technique. In addition, the impact of worker happiness on worker
output is examined. The results of the current study indicate that employee
performance is significantly and favorably impacted by training and development.
 8

Additionally, the present study discovered a strong positive correlation between

employee satisfaction and training and development. Employee happiness also has a
favorable impact on workers' performance. Furthermore, the present study discovered
a strong positive mediation effect of employee satisfaction on the association between
employee performance and training and development. There are both theoretical and
practical consequences to the current work.
Olanipekun and Olanipekun's 2022 study examined the impact of training and
development programs on employees' job performance in Lagos State's insurance
companies. The study involved 137 employees from Mutual Benefits Assurance plc,
Oasis Insurance, and Mansard Insurance. The data was analyzed using SPSS, showing
that the companies regularly held training sessions on financial security, cyber
security, customer relationship management, and fraud and falsification. The findings
indicated that these initiatives significantly impacted organizational growth by
expanding clientele and enabling smooth operations with minimal management
oversight. The study concluded that training and development initiatives are crucial
for organizational success.
Thwin et al. (2022) analyzed impact of training and development on employee
performance: a study of Myanmar internet service provider industry. The purpose of
this study was to examine how employee performance in the Myanmar internet
service provider sector is affected by training and development. Using a descriptive
research design, 250 employees, or 25% of the total workforce, were included in the
study's sample. To gather the data, Stream Best Net ISP Co., Ltd. and Global Welink
ISP Co., Ltd. staff received a standardized questionnaire. Both quantitative and
qualitative research methods are included in the collection of primary data and
questionnaire design. The data analysis software utilized was SPSS version 25. The
computations included percentages, means, frequencies, and standard deviations. To
describe the link between independent and independent variables, the Pearson
correlation coefficient (r) was utilized. The findings indicated that employee
performance and training and development were positively correlated.

1.5 Research Methodology

The step-by-step method of solving an issue by systematic information gathering,
recording, analysis, interpretation, and reporting regarding the various aspects of a
phenomenon under study is known as research methodology. The procedures and
 9

methods used throughout every part of the investigation are described in the research
methodology of this work. This chapter describes research design, population and
sample, and sampling design, nature and sources of data, method of analysis and
research framework and definition of variables.

1.5.1 Research Design

This study uses a descriptive research design and causal-comparative research design
to examine fundamental issues with staff performance, training, and development in
Nepalese development banks. This study uses a descriptive research approach to
analyze the training and development status that correlates to great employee
performance in Nepalese development banks. A causal-comparative design is used to
ascertain the cause and effect of the relationship between training and development
and employee performance.

1.5.2 Population and Sample, and Sampling Method

This survey focuses on employees in Nepal's development banks, specifically
Shangri-La Development Bank Limited, Jyoti Bikas Bank Limited, Muktinath Bikas
Bank Limited, Kamana Sewa Bikas Bank Limited, and Garima Bikas Bank Limited.
The study aims to understand the impact of training and development on employee
performance using non probability, quota sampling, convenience, and judgmental
sampling methods.

1.5.3 Nature and Sources of Data, and Instrument of Data Collection

Primary data was used to gather information regarding employees' opinions of
training and development and how it impacts their performance in Nepalese
development banks. Structured questionnaires on a 5-point Likert scale were
distributed to the bank employees.

1.5.4 Method of Analysis

There are different statistical tools are used in this study. The following subsections
discuss the statistical instruments that are employed in this write-what statistical study
to evaluate the data findings:
Mean
 10

The arithmetic mean of a range of values or quantities is the mean, which is calculated
by dividing the total number of values by the number of values. It makes reference to
the average that is looked at or used to ascertain the central tendency of the data. The
arithmetic mean is a commonly used and simple to understand measure of central
tendency. Add together all the data points for the population and divide the total by
the number point to find it. In this study, the average of the respondents' responses to
the several variables in the Likert scale question is calculated using the mean. The
mean value of the responses to the Likert scale question is calculated for each sample.
– X
Mean (X) = n
Where,
∑X= Value of responses of each independent or dependent variable
n = No. of statements

Standard Deviation
The percentage to which a set of data values fluctuate or are distributed can be
expressed using the standard deviation, which measures dispersion. One way to
describe it is as the variance times the positive square root. The fact that the standard
deviation has the same units of measurement as the data a useful distinction from
variance is one of its features. If the data points diverge more from the mean, there is
a greater deviation within the data set. Thus, as data spreads, the standard deviation
rises. Based on the responses on the Likert scale, the standard deviation is calculated
for every sample in this investigation.
– 2
(X -X)
Standard Deviation (S.D.) = n
Where,
X = Value of responses of each dependent or independent variable
–
X = Mean value of responses of each dependent or independent variable n
= No. of responses

ANOVA
An analysis of variance, or ANOVA, is a collection of statistical models and the
accompanying estimation methods used to compare group averages within a sample.
 11

ANOVA is used to look at general mean differences rather than specific ones. This
technique uses a nominal variable with two or more categories to assess potential
scale-level changes in a dependent variable. In its most basic form, an ANOVA
provides a statistical test to ascertain if the population means of many groups are
equal and broadens the use of the t-test to encompass more than two groups. An
ANOVA is useful when comparing the means of three or more groups for statistical
significance. It is equivalent to multiple two-sample t-tests in principle.

Correlation Coefficient (r)

The correlation coefficient shows how one independent variable and another
independent variable are related. It is a method for determining the relationship
between these two variables. When there is a substantial correlation between the two
variables that is, when changes in the value of the independent variable also have an
impact on the value of the dependent variable there is a correlation coefficient.
Correlation is estimated for Likert scale responses in order to ascertain the degree of
association between independent and dependent variables.
nXY – XY
Correlation Coefficient (r) = 2 2 2 2

nX – (X) nY – (Y)

Where,
X = Value of independent variable
Y = Value of dependent variable n
= Number of responses

Regression
Regression is one statistical method used to evaluate the degree of a relationship
between one dependent variable and one or more independent variablesThe
relationship’s theoretical model is represented by the equation below:
EP= β0 + β1TNA + β2TM + β3TC + ε
Where,
EP= Employee Performance
TNA= Training Need Assessment
TM= Training Method TC=
Training Contents β0 = The
 12

intercept (constant) β1, β2, β3 =

Coefficient of variables ε = Error
term.

1.5.5 Research Framework and Definition of the Variables

The researcher develops the following research framework for the study based on
reviews of the theoretical and empirical literature.

Independent Variables Dependent Variable

Training Need Assessment

Training Method Employee Performance

Training Content

Source: Thwin et al. (2022)

Figure 1 Research Framework of the Study
1.6 Limitations of the Study
The study has some limitations. The main limitations of the study are as follows:
• The accuracy of the data provided and the participants' truthful responses to
the survey questions confirm the study's assumptions.
• The reliability of the statistics is determined by the veracity of the opinions of
the respondents, and the data analysis portion has relied more on primary data.
• This survey includes workers from five development banks in the Kathmandu
Metropolitan Area.
• The Kathmandu Metropolitan City employs personnel from five development
banks for this study. The three personnel levels included in the study's replies
were manager, officer, and assistant levels.
• This study used only descriptive analysis, correlation analysis and multiple
regression analysis.
 13

CHAPTER-II
RESULTS AND DISCUSSION

2.1 Results
2.1.1 Demographic Data Analysis
Brief history information, such as demographic data, is helpful before beginning the
data analysis in order to give the readers a deeper understanding of the analysis. This
section attempts to provide further details about the respondents’ gender, age,
educational background, work experience or tenure and management level. Each is
examined, evaluated, and presented in tabular form. The table below shows each
frequency description for the demographic factors.
Table 1
Demographic Specification
No. Items Frequency Percent

1 Gender of Male 260 65.00

Respondents Female 140 35.00
Total 400 100
2 Age of
Up to 25 26-35 12 3.00
Respondents
118 29.50
36-45 180 45.00

46 and above 90 22.50

Total 400 100
Education Up to Bachelor Master’s/PHD 182 45.50
Qualification of 218 54.50
3
Respondents Work Total 400 100
Tenure of 0-3 years 68 17.00
4 Respondents 3-6 years 124 31.00
5 More than 6 years 208 52.00
Total 400 100
Non-management 190 47.50
Management Middle Level Management 150 37.50
Level of Top Management 60 15.00
Respondents Total 400 100
Source: Opinion Survey, 2024
Table 1 shows the gender distribution of employees in Nepalese development banks is
dominated by males, with 65.50% being male and 35.0% female. The majority of
respondents are aged between 36-45, with the lowest age group being up to 25. High-
 14

level managers in Nepalese development banks are productive, with age influencing
employee preparedness and growth. Education levels also play a significant role, with
45.50% having a bachelor's degree and 54.50% having a master's degree. The
majority of employees have sufficient experience to perform their jobs effectively and
productively, with 47.50% holding positions as non-management employees,
followed by 37.50% as middle-level management, and 15.00% as top management.
These findings highlight the importance of professional growth and development in
Nepalese development banks.
2.1.2 Summary of Descriptive Analysis
The mean value and standard deviation of each variable are used to determine impact
of training and development on employee performance of development banks in
Nepal. Table 3 summarizes the descriptive analysis’s specifics.
Table 2
Summary of Descriptive Analysis
Study Variables Mean Std. Deviation
Training Need Assessment (TNA) 3.8575 .77339
Training Method (TM) 3.8425 .78911
Training Content (TC) 3.8608 .79178
Employee Performance (EP) 3.7950 .78462
Source: Appendix-I
The study reveals high employee performance in Nepal's development banks, with a
mean score of 3.7950. Training content is the dominant element, with a mean score of
3.8608, indicating a high level of employee performance. The training need
assessment and method elements received lower scores, with a mean score of 3.8575
and 3.8425 respectively.

2.1.3 Correlation Analysis

A correlation coefficient measures the linear relationship between two variables, with
values ranging from -1 to 1. A positive correlation indicates a strong association, a
negative correlation indicates a perfect negative relationship, and an 0 indicates no
link.
 15

Table 3
Pearson Correlation between Variables
TNA TM TC EP
Training Need Assessment (TNA) 1
Training Method (TM) .397** 1
**
Training Content (TC) .499 .433** 1
Employee Performance (EP) .637** .630** .562** 1
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Appendix-II
Table 3 exhibits that correlation between dependent variable (employee performance)
and independent variable (training need assessment, training method and training
content). It shows that training need assessment has significant positive relationship
with employee performance at 1 percent level of significance in Nepalese
development banks. Similarly, training method has significant positive relationship
with employee performance at 1 percent level of significance of development banks in
Nepal. Moreover, training content has significant positive relationship with employee
performance at 1 percent level of significance in Nepalese development banks.

2.1.4 Multiple Regression Analysis

Regression analysis is used once the study satisfied the regression assumptions to
ascertain the degree to which the explanatory variables (training design, training need
assessment and training method) explain the variance in the explained variable
(employee performance). The 95 percent confidence interval and significance level of

0.05 are applied.

Table 4
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .776a .602 .599 .49662
a. Predictors: (Constant), TC, TM, TNA
Source: Appendix-III

The R2 value is 0.602 indicates that variations in the independent variables like
training design, training need assessment and training method can explain for 60.20
 16

percent of the observed variability in employee performance. Due to their lack of

representation in the model, other variables explain for the remaining 39.80 percent of
the preference variance, which they are unable to explain.
Table 5
Analysis of Variance (ANOVA)
Model Sum of df Mean Square F Sig.
Squares
1 Regression 147.970 3 49.323 199.992 .000b
Residual 97.664 396 .247
Total 245.634 399
a. Dependent Variable: EP
b. Predictors: (Constant), TC, TM, TNA
Source: Appendix-III
ANOVA The overall fitness of the regression model for the data is shown in Table 5.
The p-value of 0.000, which is less than 0.05, suggests that employee performance is
significantly predicted by the training and development.
Table 6
Regression Coefficient of Independent Variables with Employee Performance
Variables Coefficients t-statistics Sig.-Value
(Constant) .037 .239 .811
Training Need Assessment (TNA) .386 10.116 .000
Training Method (TM) .388 10.807 .000
Training Content (TC) .201 5.305 .000
Source: Appendix-III
Table 6 shows the regression coefficients of independent variables such as training
need assessment, training method, and raining content, and the intercept value of
dependent variable employee performance. The results show that a one-unit increase
in training need assessment leads to a 0.386 percent increase in development bank
employee performance (EP) when all other independent variables remain constant. A
one-unit increase in training method results in a 0.388 percent increase in EP when
other independent variables are held constant. A positive coefficient estimate of 0.201
indicates that an increase in training content (TC) will cause an increase in EP by
0.201 units, holding all other independent variables equal. Thus, training content has a
significant positive influence on employee performance in Nepal.
 17

2.2 Major Findings

The main purpose of the study is to examine the impact of training and development
on employee performance of development banks in Nepal. This study use mainly
correlation and multiple regression analysis to analyze the data. Employee
performance as dependent variable and training need assessment, training method and
training content are as explanatory variables.
 Training need assessment positively impacts employee performance, aligning
with Dhakal (2016) and Thwin et al. (2022).
 Training method, both on and off-the-job, also positively impacts
performance.
 Training content, as per Sthapit and Ghale (2018) and Daqar and
Constantinovits (2021), also positively impacts performance.
 Multiple regression analysis confirms training need assessment's positive
influence on employee performance.
 Training methods also have a significant positive effect on performance.
 Training content also positively impacts performance, as per Amos and
Natamba (2015), Khan et al. (2015), and Thwin et al. (2022).
 18

CHAPTER –III
SUMMARY AND CONCLUSION

3.1 Summary
The banking sector's productivity and performance are largely determined by the
people resources, competences, and skill sets within the sector. However, employees
in Nepalese development banks often feel that systematic training techniques are
impractical and that they lose their skills and information when services are delayed.
To address this, a study was conducted to investigate the impact of senior level
management development and training on employee satisfaction and performance in
these banks.
The study employed descriptive research design and causal-comparative research
design to analyze the relationship between training and development and employee
performance in Nepalese development banks. The sample size was 400 employees
working in sixteen development banks in Nepal. Data was analyzed using Excel and
IBM SPSS, with employee performance as the dependent variable and training need
assessment, training method, and training content as explanatory variables.
The results showed that training content was the dominant element, with training
content having the highest mean score value compared to other elements such as
training need assessment and training method. The correlation analysis revealed that
training need assessment had a significant positive relationship with employee
performance, while training method also had a positive relationship.
In conclusion, training and development have a strong impact on employee
performance in Nepalese development banks.

3.2 Conclusion
The study found that training content is the dominant factor affecting employee
performance in Nepalese development banks. The correlation analysis revealed a
significant positive relationship between training need assessment, training content,
and training method. Multiple regression analysis also showed a positive impact of
training content on employee performance. The study concluded that training content,
training method, and training content are the key factors influencing employee
 19

performance in Nepalese development banks. The majority of respondents agreed that

training content is a crucial factor in enhancing employee performance.
 20

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 22

APPENDIX
Appendix I
Study Variables Mean Std. Deviation
Training Need Assessment (TNA) 3.8575 .77339
Training Method (TM) 3.8425 .78911
Training Content (TC) 3.8608 .79178
Employee Performance (EP) 3.7950 .78462
Source: SPSS Outout
Appendix-II
TNA TM TC EP
Training Need Assessment (TNA) 1
Training Method (TM) .397** 1
Training Content (TC) .499** .433** 1
Employee Performance (EP) .637** .630** .562** 1
Source: SPSS Outout
Appendix-III
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .776a .602 .599 .49662
Source: SPSS Outout
Model Sum of df Mean Square F Sig.
Squares
1 Regression 147.970 3 49.323 199.992 .000b
Residual 97.664 396 .247
Total 245.634 399
Source: SPSS Outout
Model Sum of df Mean Square F Sig.
Squares
1 Regression 147.970 3 49.323 199.992 .000b
Residual 97.664 396 .247
Total 245.634 399
Source: SPSS Outout

Variables Coefficients t-statistics Sig.-Value

(Constant) .037 .239 .811
Training Need Assessment (TNA) .386 10.116 .000
Training Method (TM) .388 10.807 .000
Training Content (TC) .201 5.305 .000
Source: SPSS Outout