The Effect of Training on Employee Performance

This research project aims to analyze the impact of training and development practices on employee performance within an organization. The study will explore the benefits of training programs, examining their influence on employee productivity, morale, and overall performance. The research will also delve into the challenges and implications associated with implementing training and development plans. The project will utilize secondary data analysis, drawing insights from a survey conducted by the Australian Manufacturing Council (AMC) to assess the relationship between training and organizational performance. The findings will contribute to a deeper understanding of the role of training in enhancing employee performance and organizational success.

Central Queensland University, Australia
Melbourne Campus
Term – BUSN20019(HT2, 2017)PROFESSIONAL PROJECT
Unit Coordinator:
Lecturer:
Assessment 1: Project context and proposal
Title:
Prepared by:
1 | P a g e
Assessment 1

The Effect of Training on Employee Performance
2 | P a g e
Assessment 1

Contents
Aims of the Study.......................................................................................................................3
Research Questions....................................................................................................................3
Literature Review.......................................................................................................................4
Organisation of Project..............................................................................................................7
Research Plan.........................................................................................................................7
Data Analysis.........................................................................................................................7
Feasibility of Project within Timeframe....................................................................................9
References................................................................................................................................10
3 | P a g e
Assessment 1

Aims of the Study
 The main aim of the study is to analyse and determine the benefits of training and
development practices used in an organisation in order to increase the performance of
the employees.
 The secondary aim of this study is to analyse the implications and issues faced in
implementation of training and development plans.
Dependent variable – Employee Performance
Independent variable – Training
Research Questions
What are the benefits of training and development programmes on the performance
and the productivity of the employees in an organisation?
4 | P a g e
Assessment 1

Literature Review
As per Elange & Imran (2013), it has been identified that in the training of the employees of
the company and the performance of employees have close links. In the employee training,
another variable that is used in order to enrich the performance of the employees of the
company is Total Quality Management which in collaboration with the training practices can
help in increasing the performance of the employees. This empirical study has been
conducted taking into consideration the business and industrial environment of Australia and
the data that has been found and analysed has been extracted from the various instances in
Australian organisations (Elange & Imran, 2013). Various researchers have found no
empirical link between the training of employees and employee performance. It has been
found that training the employees to ensure the total quality management in the organisation
can itself help them to ensure that the productivity of the company is enhanced (Cascio,
2018).
In order to analyse the data the organisation that has been selected is the Woolworth
Australia which is one of the largest supermarkets operating in Australian industry.
According to Anitha (2014), the use of advanced manufacturing technology in the
organisation and use of practices in order to ensure the quality of the processes in close link
with the comprehensiveness of the training of the employees but in the organisation culture
no link has been found from the effects of these practices when used in combination with the
results were similar to a major extent (Anitha, 2014).
According to Dhar (2015), it is important to keep in mind that the human resources in the
company are an essential part and the backbone of every organisation which makes it
important for the company like Woolworth to pay effective attention to this matter. Thus it is
essential for the company to invest a huge amount of resources in the performance of the
human capital as it directly helps the organisation to increase its performance in the industry
(Dhar, 2015).
The performance is a major multidimensional constraint which is directly focused on the
employee's efforts in an organisation and this constraint has been identified to be in a strong
link with the strategic goals of a company. As per Battilana et. al., (2015), it is thus important
for the company to effectively focus on the training and development of the employees as it
helps the organisation to increase their effectiveness and efficiency levels which is also
helpful for the company to achieve its goals. In order to increase the employee performance,
5 | P a g e
Assessment 1

there are various strategies that can be implemented by the company such as training,
flexible scheduling etc. (Battilana et. al., 2015).
It is necessary for the company to design the training schedule carefully as it directly impacts
the mindset of the employee. It should be kept in mind that the development of the training
programmes should be done to satisfy the needs and requirements of the individuals. As per
Jiang et. al., (2012), it has been identified that the organisation that constructs the training and
development programme in accordance with the needs of the employees tend to get good and
desired results. It should thus be noted that the training design plays an important role in
ensuring the success of the company. There are various methods of training which are in use
in the Woolworths which have helped the company in gaining various advantages in the
industry. Apart from the organisational benefits, this has helped the employees of the
company as well in getting effective insights on their job as well.
In the on the job training method, the employees of the company get trained by performing
practical tasks in the practical business environment which helps them to gain practical
knowledge rather than gaining the bookish knowledge (Jiang et. al., 2012). This method also
helps the company to save its resources and time. It has been identified that in the Australian
industry more than 55% of the organisations use this technique of job training which
effectively helps the organisation to save its costs and resources incurred in order to train the
employees. Apart from this, it has also been identified that the company uses this technique
to majorly train their employees in a practical manner. The benefit of less supervision is also
enjoyed by the company when the employees are trained in the practical arena. This helps the
employee to gain precise knowledge and skills in order to perform a particular job. This
type of training ensures that employees attain right skills at right time provided that they are
efficiently undertaking all the training programmes (Chiang & Hsieh, 2012).
As stated by Grant (2012), another benefit that is received from the effective and efficient
training of the employees is that the chances of errors and accidents in the company
reduce to a significant level. The company is also able to develop a pool of talents when the
employees are cross-trained. This helps in bridging the gap in case an employee leaves the
organisation or in case someone is transferred promoted to another job specification. This
uncovering of the potential of the employees assists the organisation to develop all-rounder
employees. The company, in this case, may also share their ideas with the management
which helps them in getting a sense of satisfaction. It is also required by the organisation to
effectively develop the leadership in the organisation which may prove beneficial for some
employees to harness this opportunity (Grant 2012). Some of the individuals in the company
6 | P a g e
Assessment 1

have identified to possess the leadership skills and the inclusion of leadership culture in the
company has helped the organisation in ensuring that these employees get a fair chance of
being a leader. This constraint can help the company in ensuring the satisfaction of the
employees and increase their loyalty towards the organisation. This can help the organisation
in increasing its levels of productivity and effectively decreasing the employee turnover ratio
(Kashmir Observer. 2018).
According to Philips (2012), in a recent survey conducted in the Australian business, industry
has found that the improvement in the quality of services is the major objective of 93%
companies and 88% of the companies focused on gaining the competitive edge in the
industry. It has been found that both of these desired results were achieved by effective
training of the employees of the company. It can thus be said that the improvement in the
quality of goods and services is the constant driver of the training of the employees (Philips,
2012).
Thus from the literature review presented above it can be said that training and development
of the employees is a critical task and it is required by the company to take effective and
efficient care of the same as it can help the company in ensuring that the strategies goals and
objectives are achieved and the performance of the company and the employees are increased
in an effective manner.
7 | P a g e
Assessment 1

Organisation of Project
Research Plan
In order to conduct the research, the data was collected from the secondary sources of data
collection. It should be noted that in order to conduct a research, the two major methods are
primary and secondary. The primary data can be identified as the first-hand data while on the
other hand, the secondary data is the second-hand data which has already been published and
analysed by various researchers. In order to conduct this research, the secondary sources of
data collection have been used because of the time limitations. The time with the researcher
was found to be limited due to which a large-scale study could not be attempted. Also, it
should be noted that the lack of human resources is another reason behind dropping the idea
of conducting a primary research.
Type of data
It has been analysed that there majorly two essential types of data i.e. qualitative data and the
quantitative data. The quantitative data is the one which can be effectively studies in the form
of stats and number and the analysis of such data is easy and precise. On the other hand, the
qualitative data is the data present in the theoretical forms and this type of data is majorly
extracted from the secondary sources. In this research paper, the data collected is from
secondary sources and is quantitative in nature.
Data Analysis
In order to determine the impact of training and development on the organisational
performance, the data has been collected through the report presented by Australian
Manufacturing Council (AMC). The survey is inclusive of 246 questions and has been
analysed by Australian Bureau of Statistics and the Manufacturing Advisory Group (New
Zealand). The survey has been sent to 3000 Australian companies and 1000 manufacturing
companies of New Zealand in order to identify the impact of training on the organisational
performance. The companies were listed and employed more than 20 employees and are
registered with the Australian Bureau of Statistics or Statistics New Zealand. The response
rate received from both the countries was found to be around 325 and 38% respectively. The
analysis of the data has been presented below as follows by the use of ANOVA analysis
(Stats.oecd.org., 2018):
8 | P a g e
Assessment 1

Performance
(Dependent
variable)
Training and Development
R Squared T Values Significance
Improvement in
Productivity
r2 = 0.167 Adj r2 =
0.158
Leadership: 5.610
Customers: 2.024
p – 0.000
p – 0.042
Productivity
improvement
r2 = 0.112 Adj r2 =
0.106
Customers: 4.560
People: 3.920
p – 0.000
p – 0.042
Morale of employees r2 = 0.266 Adj r2 =
0.261
Leadership: 8.426
People: 6.330
p – 0.000
p – 0.000
(ANOVA analysis)
From the analysis presented above, it can thus be concluded that the employee training is
much more effective when it is set in the human resource management. There are various
perceived advantages that are received from effective management of the employees which
are majorly experiences in the company productivity, morale of employees and satisfaction
among consumers.
Gantt Chart
Activities Time Duration (Weeks)
Project Planning 1
Resource Allocation 2
Resource management and analysis 2
Implementation of project 3
Project monitoring 4
9 | P a g e
Assessment 1

Feasibility of Project within Timeframe
It has been analysed that the project has been effectively completed by the researcher and in
the timeframe allocated. It should be noted that the timely completion of the project was
ensured by the project manager and the project has been identified to be in accordance with
the budget that has been allocated in order to conduct the essential activities. The project can
thus be considered as effective and feasible. The project was developed keeping in mind the
various requirements of the topic and ability of the researcher to carry out the same.
10 | P a g e
Assessment 1

References
 Anitha, J. (2014). Determinants of employee engagement and their impact on
employee performance. International journal of productivity and performance
management, 63(3), 308.
 Battilana, J., Sengul, M., Pache, A. C., & Model, J. (2015). Harnessing productive
tensions in hybrid organizations: The case of work integration social
enterprises. Academy of Management Journal, 58(6), 1658-1685.
 Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
 Chiang, C. F., & Hsieh, T. S. (2012). The impacts of perceived organizational support
and psychological empowerment on job performance: The mediating effects of
organizational citizenship behavior. International journal of hospitality
management, 31(1), 180-190.
 Dhar, R. L. (2015). Service quality and the training of employees: The mediating role
of organizational commitment. Tourism Management, 46, 419-430.
 Elnaga, A., & Imran, A. (2013). The effect of training on employee
performance. European Journal of Business and Management, 5(4), 137-147.
 Grant, A. M. (2012). Leading with meaning: Beneficiary contact, prosocial impact,
and the performance effects of transformational leadership. Academy of Management
Journal, 55(2), 458-476.
 Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012).
Clarifying the construct of human resource systems: Relating human resource
management to employee performance. Human resource management review, 22(2),
73-85.
 Kashmir Observer. (2018). Benefits of Training & Development in an Organization.
[online] Available at: https://kashmirobserver.net/2016/opinions/benefits-training-
development-organization-3983 [Accessed 17 Apr. 2018].
 Phillips, J. J. (2012). Handbook of training evaluation and measurement methods.
Routledge.
 Stats.oecd.org. (2018). OECD Statistics. [online] Available at: http://stats.oecd.org/
[Accessed 17 Apr. 2018].
11 | P a g e
Assessment 1

12 | P a g e
Assessment 1