PERSONNEL TRAINING AND DEVELOPMENT AND EMPLOYEE PRODUCTIVITY IN A FINANCIAL INSTITUTION

(A case study of First Bank Nigeria Ltd in Osun State)

BEING A PROJECT WORK SUBMITTED TO

THE DEPARTMENT OF MANAGEMENT AND ACCOUNTING,

FACULTY OF ADMINISTRATION,

OBAFEMI AWOLOWO UNIVERSITY,

ILE IFE,

OSUN STATE.

BY

AMEH ELIZABETH OYANU

(MAC/2009/071)

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF

BACHELOR OF SCIENCE B.Sc. (HONOURS)

IN

MANAGEMENT AND ACCOUNTING

MAY 2014

CERTIFICATION

This is to certify that this project work was carried out by Miss Ameh, Elizabeth

Oyanu and approved as fulfilling part of the requirements for the award of B.Sc.,

Management and Accounting, Obafemi Awolowo University, Ile Ife, Osun State.

Mr. W.O. Akande ………………………. ………………….

Supervisor Signature Date

Prof T.O Asaolu ………………………. …………………

Head of department, Signature Date

Management and Accounting,

OAU.

Ile –Ife,

Osun State.

DEDICATION

This work is dedicated to my parents, Mr. and Mrs. Ameh. May Almighty God

give you long life to reap the fruit of your labour. (AMEN)

ACKNOWLEDGEMENT

I give all glory to the Almighty and All sufficient God for his grace and mercy. He is

the one who has made it possible for me to begin and complete this programme.

I wish to place on record my appreciation of the efforts of my supervisor – Mr. W. O

Akande for sparing his time to go through this project – thank you very much

I will like to express my profound gratitude to my family, most especially my father

Mr. James Ameh who assisted me financially, morally and spiritually. I want to say thank you for

all your encouragement and love, and also my mother Mrs. Alice Ameh for your consistent

prayers and love. My siblings Joseph, Hannah, Chris, Samson, Simon and Grace; thank you all

for your moral and financial support. Love you all so much.

Not forgetting my friends: Naka, Ope, Michael, Lola, Mj, Bola and most especially

Sylvester (pp.) and others who made OAU fun and memorable. And to my roommates in Block 1

room 110 Alumni Hall, 2012/2013 session, thanks for your support and contributions most

especially Ojo Opeyemi (yellow).

May God bless you and grant you all favors.

AMEN.

TABLE OF CONTENTS

Title page i

Certification ii

Dedication

iii

Acknowledgement iv

Abstract v

Table of Contents vi

CHAPTER ONE: INTRODUCTION

1.1 Background to the study 1

1.2 Statement of the Problem 3

1.3 Research Questions 4

1.4 Research Objectives 4

1.5 Research Hypotheses 5

1.6 Significance of the Study 5

1.7 Scope of the Study 6

1.8 Operational definition of terms 6

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction 8

2.1 Training 9

2.2 Development 10

2.3 Training and development 11

2.4 Relationship between training and development and employee productivity 24

2.5 Theoretical Review 26

2.6 Training Design and Evaluation Model 28

2.7 Theoretical Framework 29

2.8 Empirical and Academic Review 30

2.9 Observation (Gaps) and Recommendations 39

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Area of study 40

3.2 Research Design 41

3.3 Population and Sampling Technique 41

3.4 Sources of Data 41

3.5 Research instrument 41

3.6 Validation of research instrument

42

3.7 Measurement of Variables 42

3.8 Data Analysis Technique 42

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Analysis of Data 44

4.2 Analysis of some responses 46

4.3 Hypotheses testing 53

CHAPTYER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary 55

5.2 Conclusions 55

5.3 Recommendations 56

Bibliography 58

Appendix 72

ABSTRACT

The study identified the type of training schemes available to the staff of First Bank

Nigeria Ltd. It also ascertained if personnel training and development enhance employees’

productivity and analysed the relationship between personnel training and development and

employees’ productivity in First Bank Nigeria Ltd.

This research adopted the human capital theory. To guide the study, three research

questions were posed. Data used was obtained through primary source of data. A self- designed

questionnaire was used to collect data for the survey. A sample size of 50 respondents drawn

from the employees of First Bank Nig.Ltd. Were selected for the study using stratified sampling

techniques. Data were analyzed using SPSS (Statistical Package for Social Sciences), to further

test the hypotheses, the chi-square distribution was employed.

The findings of the study showed that majority of the respondents (78.0%) agreed that

training and development programs have enhanced their efficiency and job productivity.

Secondary, majority of the respondents (76.0%) overwhelming agreed that training and

development programme enhanced organizational performance. The result further showed that

there is a significant relationship between training and development schemes and employees’

productivity (x2 = 21.398; p < 0.05).

The study concluded that training and development of employees enhances

productivity. The study therefore recommends that organizations should conduct training need

assessment to ensure that the right training is given and ensure that training is on a continuous

basis.

CHAPTER ONE

INTRODUCTION

• Background to the Study

Personnel training and development is very vital to job productivity and organization

performance since the formal educational system does not adequately provide specific job skills

for a position in a particular organization. While, few individuals may have the requisite skills,

knowledge, abilities and competencies needed to fit into a specific job function, some others may

require extensive training to acquire the necessary skills to be able to fit in a specific job function

and also make significant contribution to the organization’s performance.

According to the International Journal of Advances in Management and Economics– The

human capital theory provides evidence which indicates that training and education raises the

productivity of workers by imparting useful knowledge and skills, hence raising workers’ future

income by increasing their lifetime earnings. Andalso provide an explanation that links

investment in training with workers’ wages. In particular, their theory draws a crucial distinction

between general education and firm-specific training, and recognized training and human

development as a basic skill provided for higher productivity of a worker. Training has the

distinct role in the achievement of an organizational goal by incorporating the interests of

organization and the workforce.

In a developing country like Nigeria, training and development of manpower resources is

highly needed in virtually all business organizations for its effectiveness. It is hard for any

business organization to exist without adequate manpower hence it is an indispensable tool for

any business organization. For accountants to perform their functions effectively there must be

well designed training and development programs to enable them enhance their productivity.

These training programs may range from on-the-job training scheme aimed at exposing

accountants to new techniques adopted in modern office environments. (International Journal of

Asian Science).

Training to ohakwe (2007), is a continuous assistance or coaching given to an employee in order

to make him have the current knowledge of the job content, scope and relationship within the

organization. Development involves preparing employees for higher responsibilities in future.

Development according to Ezeuwa (2009) can be seen as the use of human resources to

quantitatively change man’s physical and biological environments to his benefits or ever seen as

involving the introduction of new ideas into the social structure and causing alterations on the

patterns of the organization and social structure. To develop staff, (Daniels, 2003) simply refers

to make them grow with the company so that they can be fitted for available higher positions

within their capacity. Development deals with improving human relations and interpersonal

(Iwuoha, 2009).

However, development may equally be viewed as improved efficiency in making proper

adjustment and or adaptation of individuals in the society. It is believed that before one becomes

an accountant or a manager, one must have undergone a period of the job related training and

obtained a good certificate (B.SC, ACCA, ANAN and ICAN or other relevant qualifications) as

well as having a cognate growing work experience.

Training as the crucial area of human management, is the fastest growing segment of personnel

activities. Training which is referred to as a course of diet and exercise for developing the

employees’ affective, cognitive and psychomotor skill assist the organizations to have a crucial

method of developing the employee towards enhancing his productivity. At times, some

companies go beyond establishing their own schools for training and retraining their staff at no

cost expense to the trainee.

The main aim of training and development programs in business organizations is to enable

employee’s increase their productivity, productivity on the other hand is the end product of

training and development as well as a measure of the output of the result from a given output.

Accountant plays a very vital role in the business organization in the realization of the

organizational goal, he therefore needs to be constantly exposed to regular training programs to

increase his skills to enable adapt to technologically world of business.

1.2 Statement of the Problem

Despite the importance of personnel training and development on employee productivity,

training programs are not sufficiently supported by organizations in Nigeria. These organizations

consider the money they will spend on their training programs as waste rather than investment.

They fail to foresee the desirability of continuous training and development of their employees in

order to promote the efficiency and effectiveness of their organizations. Those that attempt to

conduct trainings for their employees do so in an ad-hoc and haphazard manner, and as such,

training in those organizations is more or less unplanned and unsystematic. This view is

corroborated by Nwachukwu who argued that many employees have failed in organizations

because of lack of basic training

Most of the employers have reported the inefficiency of some staff in business organization in

Nigeria, though the inefficiency could be attributed to their non-possession of the requisite skills

and competencies. The adverse effect of ( Iwuoha, 2009) nepotism, god fatherism and favoritism

during recruitment exercise has effects on productivity. The resultant effect of this is that such

accountant employed without due employment procedures find it extremely difficult to cope with

the ever improving technologically business environment, the problem of the study put in a

question form is, what type of training should the accountant be exposed to enable him move

with the demands of the ever changing world?

1.3 Research Questions

The following research questions guided the study

• What type of training programs isavailable to the employees of First Bank Nigeria

ltd?

• Does training and development enhance employee productivity in financial

institutions?

• What are the relationships between personnel training and development and employee

productivity in financial institutions?

1.4 Research Objectives

The main purpose of this study is to examine the personnel training and development of First

Bank ltd and its impact on employees’ productivity.

The specific objectives are to;

• Identify the type of training schemes available to employees of First Bank Nigeria ltd;

• ascertain if personnel training and development enhance employees’ productivity in

the banks; and

• Analyse the relationship between personnel training and development and employees

productivity in First Bank Nigeria ltd.

1.5 Research Hypotheses

Relative to the objectives of this study, the following hypotheses are postulated.

HO: There is no significant relationship between training and development and employee

productivity.

H1: There is significant relationship between training and development and employee

productivity.

HO: Training and development does not significantly enhance employee productivity.

H1: Training and development significantly enhance employee productivity.

1.6 Significance of the Study

It is expected that this study will be of immense benefit to the Management and employees of

banks and other organizations as well as the government, policy makers, academicians,

consultants, and other researchers in the field of human resources management in Nigeria. For

instance, this study will provide vital information to managers in the banking sector that would

encourage employee motivation and job satisfaction.

It will also be relevant to the human resource development department in the formulation of

policies relating to training and development of personnel that will help to develop and maintain

a quality work life, which will enhance employee job satisfaction and self-actualization.

As part national planning strategy, this study will assist the government to identify those areas

where it can be of assistance to corporate bodies in Nigeria with respect to human capital

development. Consultants to banks on human resources management will also find this study

useful as a good reference material. Above all, this study would assist in expanding the scope of

existing literature on employee productivity and organizational performance in Nigeria.

1.7 Scope of the Study

This study examines the concept of personnel training and development as it specifically affects

employee productivity in financial institutions.

The scope of this study will cover FirstBank of Nigeria (FBN) ltd. in Osun state. My choice of

FBN ltd. is informed by the fact that it has a large number of employees, a good training program

for its employees, and it has survived the so called harsh operating environment in Nigeria and

has continued to dominate the Nigerian banking industry. Questionnaire data collection would be

adopted.

1.8 Operational definition of terms

Effects were made at defining the following terminologies used in this study to avoid ambiguity

and elicit proper understanding.

Development:This is the process concerned with people’s capacity in a defined

and over a period to manage and involve positive change, and reduce or eliminate

unwanted change.

Personnel: The body of persons employed by or active in an organization.

Institution: This is any structure or mechanism of social order governing the

behavior of a set of individuals.

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

Many organizations have come to recognize that training offers a way of developing

skills, enhancing productivity and quality of work, and building worker loyalty to the firm

(http://www.bls. gov/oco/ocos 021 htm). They have seen for themselves that training is where

skills are developed, attitudes are changed, ideas evolve and the organization is reinvented. In the

course of learning the skills that will increase sales, build effective teams, improve quality

standards or meet a wide range of other objectives, employees create a new organizational

culture (Babaita, 2010).

Training means investing in people to enable them to perform better and to empower

them to make the best use of their natural abilities for overall effectiveness and efficiency of an

organization. An organization is seen to be effective and efficient if there is demonstrable

increase in productivity (Daniels 2003; Babaita2010). There is need for continual training and

retraining especially with the impact of rapid technological changes on existing skills and jobs.

From the literature review, the accountants are seen as an indispensable group in the entire office

in the labor markets; hence the training given to them is such that assists an individual to be

occupationally competent by providing him with learning experiences that will help him develop

skills and ability for making sound decisions.

There are numerous problems (funding, lack of training facilities, lack of manpower, etc.)

which have continued to affect the training of accountants thereby hampering their optimal

productivity (Iwuoha, 2009). Despite the recognition of importance of training by management

experts and government in white papers on various reforms in Nigeria, the experience of

manpower (staff) training and development (Okotoni and Ercro, 2005) in the Nigerian public

service has been more of ruse and waste.

This chapter deals with the review of related literature on the topic of the study. The review

embraces information in journals, magazines, text books, internet, etc. Specifically, the review

covers the following sub-headings:

A. Conceptual Review

B. Theoretical Review

C. Theoretical framework

D. Empirical and Academic Review

2.1 TRAINING

Training is a systematic restructuring of behavior, attitude and skill through learning-

education, instruction and planned experience (furqan and khan, 2011).

According to management study guide (2013) “training may be described as an endeavor

aimed to improve or develop additional skill in an employee on thejob one currently holds in

order to increase the performance or productivity.

According to Business Dictionary “Organized activity aimed at imparting information

and/or instructions to improve the recipient’s performance or to help him or her attain a required

level of knowledge or skill”

According to Cole (2002), in his book Personnel and Human Resource Management,

training is a learning activity directed towards the acquisition of specific knowledge and skills

for the purpose of an occupation or task. The focus of training is the job or task for example, the

need to have efficiency and safety in the operation of particular machines or equipment, or the

need for an effective sales force to mention but a few.

The Manpower Services commission of the United Kingdom, which was set up by the

1973 Employment and Training Act defined training as a planned process to modify attitude,

knowledge or skill behavior through learning experience to achieve effective performance in an

activity or range of activities. According to them, the purpose of training in the work situation is

to develop the abilities of the individual and to satisfy the current and future of the organization.

Training according to Oxford Advance Learner’s dictionary, is the process of preparing

somebody or being prepared for job. In manpower development, training is therefore an

indispensable and at the same times a vehicle for development and planning.

According to Armstrong (1996), expressing an understanding of training emphasizes that

training should be developed and operated within an organization by appreciating learning

theories and approaches if the training is to be well understood.

Training can be explained as a planned and systematic effort by management aimed at

altering behavior of employees, in a direction that will achieve organizational goals. A formal

training program is an effort by the employer to provide opportunities for the employee to

acquire job-related skills, attitudes and knowledge, McGhee et al (l996).

According to Stemetz et al (1969), “training is a short term process utilizing a systematic

and organized procedure by which non-managerial personnel learn technical knowledge and

skills for a definite period”

Price (1975), according to him, the training functions is a management activity in which

the personnel department provides the necessary specialist knowledge and usually carries out in

addition the administrative requirements so that the function operates effectively within the

organization.

Price (1975) emphasized the role of training in management activity especially in the area of

human resources management. According to him, the training functions is a management activity

in which the personnel department provides the necessary specialist knowledge and usually

carries out in addition the administrative requirements so that the function operates effectively,

within the organization. He went further to slate the basics stage is establishing a training

function with the view to improving on the manpower development.

These stages are:

i. To find out the training needs of the particular needs of the particular company at all

levels.

ii. To formulate training policy which will meet the needs?

iii. To evaluate the resources both financial and material which will be required?

Training is therefore a key element for improved organization; it increases the level of

individual and organizational competencies. It helps to reconcile the gap between what

should happen and what is happening – between desired target standards and actual level

of job performance. Although many employers continue to have reservations about the

cost and extent of tangible business returns from training, the development of skill has

been identified as a key factor in sharpening competitiveness,

2.2 Development

Development generally, means the process of causing somebody or something to grow or

making something to become larger gradually. But in relation to manpower, development can be

seen as a process of increasing the quality or value or skill of an employee (personnel).

From the definition, it can be seen that training facilitates manpower development and

consequently his performances. Manpower training and manpower development are two inter-

related processes whose importance cannot be over emphasized in any decision of strategic

human resource management. These relate to the series of activities which an enterprise would

embark upon to improve the quality of’ its managerial capacity.

In the view of Chanokan (1987) manpower development refers broadly to the nature and

direction of change induced in the employees as a result of educating and training programs. He

says development is managerial in nature and career focused. To distinguish between training

and development, Chanokan also opined that “unlike the training of the worker which improves

technical and mechanical skills, the development techniques are designed for work behavior

modification”. According to him, development is an educational process, utilizing a systematic

organizational Procedure by which a worker learns the conceptual and theoretical knowledge for

effective pursuance of their responsibilities.

2.3 Training and Development

As we know that training and development refers to the process to obtain or transfer KSA

(knowledge, skills and abilities) needed to carry out a specific activity or task ; therefore,

benefits of training and development both for employer and employees are strategic in nature and

hence much broader. In order to meet the current and future challenges of our business, training

and development assumes a wide range of learning actions, ranging from training of the

employees for their present tasks and more so, knowledge sharing to improve the business

horizon and customer’s service. It also focuses on their career development, thus expanding

individual, group and organizational effectiveness

. Training and development have become the most important factor in the business world

today, because training increases the efficiency and the effectiveness of both employees and

organization (Raja, Furqan and Khan, 2011). In fact, in the start of the twenty-first century

Human Resource Managers have opined that one of the main challenges they are to confront had

involved issues related to training and development (Stavrou, Brewster and Charalambous 2004).

Training is a form of specialized education aimed at giving the trainee a particular or

specialized knowledge, skill and attitude which he must possess to effectively perform in a given

position. Development is concerned with specific programs designed to prepare and groom a

worker with particular education and training for higher responsibilities (Onasanya, 2006).

Beardwell and Helen (2001) also view development as the process of becoming

increasingly complex, more elaborate and differentiated by virtue of learning and maturation.

Many organizations have over the years introduced personnel training and development

strategies in order to enhance better employee performance at work and increase productivity

(Nguyen 2009).

According to Raja et al (2011) Training and development is a very important tool for an

organization to compete in this challenging world. Facing fierce competition and ever rapidly

changing market environment, large corporations must find ways to improve productivity,

efficiency, customer service, staff retention and other key drivers of corporate profitability

(Training and development) should they want to be more profitable and be more competitive in

the industry (Vicet, nd;Nguyen 2009). Rouda and Kusy (1995) views Training and Development

as the ‘acquisition of knowledge, competencies and skills, and adopting behaviors that improve

performance in current jobs, including: adult learning theory and applications, instructional

systems design, train-the-trainer programs, and instructional strategies and methods.

Management development and training has been seen as a process which employees are

recruited, selected, trained, motivated and required within an economic system. According to

Alao (2010), formal management development program began to appear in large cooperation in

1940 and early 1950s. In the past few decades, there has been an increasing amount of research

and general knowledge of the principle and techniques of administration. The rapid rates of

technological and social changes have made it imperative to have managers and workers who are

trained to cope with these changes.

Theeverincreasing technological sophistication especially in this age of computer

technology has paved way for management training to meet changing business. In the recent

years, industries have been concerned with the development of workers and those in

management position both to improveperformance in their present job and to provide a solid

basis for those who are newly recruited. Those developments have been given impetus with the

research of Taylor (2008).

Adler (1979) equates learning experience to human resources development. He is of the

opinion that learning experience are organized for a specific period and designed to bring the

possibility of behavioral change.

Management study guide states that “Training and Development is a combined role often

called Human Resource Development (HRD), meaning the development of “human” resources

to remain competitive in the market place. Training focuses on doing activities today to develop

employees for their current jobs and development is preparing employees for future roles and

responsibilities.

Training and development is basically directed at the employee but its ultimate impact

goes to the organization, because the end user of its benefit is the organization itself (Raja et al,

2011).

2.3.1 Types of Training and Development Programs

There are many training and development programs available. The particular method

chosen by a company can be influenced by considering cost and time available, number of

persons to be trained, depth of knowledge required, background of the trainee, etc.

Manpower development is a systematic process of training and growth by which

individuals gain and apply knowledge skill insights and altitude to manage work and personnel

effectively. It involves the estimation of the demand for the supply of management staff for the

organization in future. It is the involvement of efforts aimed at improving the quality as well as

the number of management staff. Studies showed that many workers fail in organizational

expectation because the training needs were not identified and provided for. Development may

help to build confidence in the workers and make him work more efficiently and effectively.

On The Job Training

This is the method used to acquire specific skill while the individual is on the job. On the job

training is required to improve the staff that had inadequate academic qualification for his job

performance when he was employed specifically in a situation of acute manpower shortage. This

is also regarded as training within industry or training within organizational policy. The

definition also suggests that on -the- job method is a specific form of job instruction. It imparts

only those skill needed by the worker to perform a particular job competently. This is why it is

mostly done in plant. However, it can be done outside the plant too. This specific form of

training can both be formal and informal. Formal in the sense that, what is to be instructed is

organized, manned or structured sequentially.

On the job training could take the following forms:

• Training by experienced workmen

• Apprenticeship which is the oldest method of training.

Information Presentation Method

The aim is to impact the Facts, theories, concepts, etc. without actual practice. Examples

of information presentation method are:

• Conference Method:

This could be in form of a seminar program where a small group is drawn from different

organizations.

• Classroom Method

It can be used to teach a large Crowd and it is usually two-way communication where questions

are asked and answers are received.

• Programmed Instruction:

It is teaching aides such as cassettes, firm etc. This method is different from conventional form

of training in which the trainer guides the process because the materials to be learned with is

presented in a way the student can control.

• Lecture method:

This is a standard institutional method used in colleges, polytechnics and universities. It is

cheaper and has the ability to accommodate more students.

Simulation Approach

People are trained on real Iife experience i.e. problem that present itself on real life. Simulation

approach could take demonstration or role playing methods.

• Demonstration method:

This explains to the trainee by teaching live with examples such as making displays. It is the

actual showing mailer than telling the trainee and that is why, it is learning by seeing.

• Role playing method:

It is a technique in which some problems real or imaginary involving human interaction is

presented and then spontaneously acted out.

Induction Method

Introduction is the orientation conducted for new employees. According to Pigors and

Minner (1969) a good induction should cover the following:

Introductory information by personnel department

A follow-up interview many weeks after the employees have been on the job. The purpose of

induction is to give new entrant feelings that they are welcomed.

Professional Training

This is used to help trainee acquire more skill usually in technical or commercial fields,

where skills are required for performing a task.

Shadowing and job rotation

This usually aims to give trainee managers a feel for the organization by giving them the

experience of working in different departments. Trainees must be encouraged to feel it is not

time wasting and people in the various departments in which they are temporarily working must

feel a commitment and involvement in the training if it is to work. Unfortunately, trainees are not

usually welcomed and are seen by supervisors and workers in the department as obstacles to the

daily routines. If well-structured and planned with the cooperation of all departmental

supervisors, this method can be a worthwhile learning experience.

Job rotation is another version of training that became popular in the 1970s to help

relieve boredom and thereby raise the productivity of shop floor workers. It is a management

technique used to rotate incumbents from job to job or from department to department or from

one plant to another in different geographical areas. The rotation is done on co-ordinate basis

with a view to exposing the executives and trainees to new challenges and problems. It is also

aimed at giving executives broad outlook and diversified skills.

If appropriately implemented this can be an excellent learning experience for workers and

suitably fits with Human Resource Management concepts of team-work and empowerment

whereby people are encouraged to greater responsibility for their work and that of the team. On

the negative side, there have been criticisms that not enough structured training is given to enable

workers to do these jobs well. However, the researcher believes that on-the-job method of

training has a setback. A critical review of the method reveals that, although employees learn

doing the job, their productivity tends to be low because they do not have the skills and

knowledge needed to be effective and efficient. In an on-the-job training method, the emphasis is

more on the acquisition of specific, local knowledge in a real situation. Unlike on- the-job

method, off-the-job method emphasizes developing an understanding of general principles

providing background knowledge and generating an awareness of comparative ideas and

practices.

Vestibule Training

This method of training is where the worker is trained to use machine or perform a task

similar to the ones in the real work situation. Under this method of training, the training program

is conducted out of the job in an area separate from the work place under the supervision of a

skilled instructor. After going through the vestibule training for a specified time period, the

trainees are expected to apply their newly acquired skills when they are assigned to their real job.

Behaviour Modeling

Here, some of the methods used in the assessment centers include business games, in-

basket, simulation, problem-centered cases, and many others, to enable the trainee learn the

behaviors appropriate for the job through role-playing. The use of behavior modeling is based on

social theory, and it is in particular an effective method for interpersonal or social skills training.

This method of training incorporates the use of videos to clearly demonstrate the way things

ought to be done, what behaviors are to be avoided.

Behaviour modeling is often based on the demonstration of the right and effective way to

behave and as a result, trainees are provided with facilities to practice this. Bryn (1990:17) puts it

this way, that behavior modeling is where target behaviors are selected and videos on each of the

behaviors produced, showing competent persons achieving success by following specific

guidelines. Key points are displayed on screen and are backed by trainer-led discussions.

Learning here is trainer enforced through role play.

Understudy Training

An understudy is a person who is training to assume a position at a future date, the duties

and responsibilities of the position currently occupied by the person he or she is understudying.

An individual or group is assigned to assist a superior officer in the performance of his duties

related to the position and at times left to grapple with the day-to-day problems which confront

the superior in the performance of duty. They are allowed to solve them with or without the help

of the superior. When the understudy shows promise of talent, he takes over when the superior is

transferred, retired or is promoted to a higher position.

Case Study

Here, trainees are given case studies of real or imagined events in an organization to

study, analyze and give an opinion. After analyzing several cases under the guidance of

instructors, the trainees are exposed to certain concepts, problems, techniques and experiences,

which they will later face on the job. The object of this method is to help the trainees think

logically and develop the ability to analyze alternative courses of action systematically and

objectively.

Business Exercise

In this type of training exercise, the work situation is stimulated and the trainees are

presented with reports, correspondence and memoranda, as in a real work situation, to handle.

Business exercise training helps employees to develop decision-making, time management,

planning and communication skills. It also helps them to develop a “feel” for the work situation

before they apart the real job.

Group Training

Group training method includes group discussions, seminar and sensitivity training. Here,

trainees having different or similar backgrounds and experiences meet to share ideas on specific

topics decided by the trainer. If organized properly, it offers trainees from different backgrounds

an opportunity to share valuable information and learn from each other’s experience. An example

is the T-group which is an approach to human relations; the original emphasis is that it is a form

of group therapy. The seminars have the benefit of encouraging participants whiles providing

opportunities for trainees to learn from each other. The T-group is however, leaderless,

unstructured groups designed to encourage learning room experience and group dynamics, and

also provide a forum for the giving and receiving of personal feedback.

2.3.2 Evaluation of Training

Assessing the progress of employees is one of the most important responsibilities of an

employer. Evaluation activities should be integrated into the overall training plan to determine

how effectively the training efforts are progressing. When you evaluate as you go along it gives

employees more incentive to learn throughout the training program and employers can get useful

information to identify problems as they arise. These evaluations are often performed by a team

that can spend the time to collect data, make judgments, and propose recommendations for future

actions.

(WHO resources 2014)

Upon checking the effectiveness of training, Kenney et al (1992) stated that the training

program is reviewed during and after its completion by the training officer, the line manager, and

if necessary, by the trainees themselves. Evaluation differs from validation in that it attempts to

measure the overall cost benefit of the training program and not just the achievement of its laid

down objectives. Hamlin (1974) advocated that until control measures are taken to correct any

deficiencies after the training, evaluation has not been completed and thereby ineffective.

Evaluation is an integral feature of training, but it could be difficult because it is often hard to set

measurable objectives.

2.3.3 Methods of Evaluation

There are several methods for evaluating training. Beardwell and Holden (1993) have

cited some of these methods as follows;

1. Questionnaires (feedback forms): this is a common way of eliciting trainee responses to

courses and programs.

2. Tests or examinations: these are common on formal courses, especially those that result

in certification for instance a diploma in word processing skills. End-of-course tests can

also be employed after non-certificate short courses to check the progress of trainees.

3. Projects are initially seen as learning methods but they can also provide valuable

information to instructor about the participants’ understanding of subject matter.

4. Structured exercises and case studies also provide opportunities to apply learned skills

and techniques under the observation of tutors and evaluators.

5. Interviews of trainees after the course or instruction period are another technique for

gathering information directly from the learners. These can be formal or informal,

individual or group, face-to-face or by telephone.

Productivity

This is the amount of output that is produced per unit of input; usually expressed in terms

of output per unit of time. The expert’s consultants, academician and practitioners have

expressed their views on productivity. Some of the accepted definitions of productivity are given

below:

(i) Productivity is a measure relating a quantity or quality of output to the inputs required to

produce it. Often means labor productivity, which canbe measured by quantity of output

per time spent or numbers employed. Could be measured in monetary term like rupees

per hour -Webmaster Dictionary

(ii) From Wikipedia, the free encyclopedia, productivity is a measure of output from a

production process, per unit of input. For example, labor productivity is typically

measured as a ratio of output per labor-hour, an input. Productivity may be conceived of

as a metric of the technical or engineering efficiency of production.

(iii) Relative measure of the efficiency of a person, machine, factory, system, etc., in

converting inputs into useful outputs. Computed by dividing average output per period by

the total costs incurred or resources (capital, energy, material, personnel) consumed in

that period, productivity is a critical determinant of cost efficiency. Business Dictionary

(iv) Productivity is a measurement of the output produced using a quantity of inputs. The

production process is a representation of the relationship between outputs and the inputs

used to produce them. -Diane Huber

(v) Employee productivity is the amount of goods and services that an employee produces in

a given amount of time. It is one of several types of productivity that economists

measure. It productivity can be measured for an individual, a firm, a process or a country-

www.wikipedia.org

(vi) The quantity of goods and services that someone can produce with a given expenditure of

effort, usually measured or averaged out in terms of time spent working or labor time.—

Web.ict.ac.za.

(vii) The OECD defines it as “the ratio of a volume measure of output to a volume measure of

input”. Volume measures of output are normally gross domestic product (GDP) or gross

value added (GVA), expressed at constant prices i.e. adjusted for inflation. The three most

commonly used measures of input are: hours worked; workforce jobs; and number of

people in employment.

(viii) Productivity is the amount of work produced in a given period of time. Productivity

relates to the person’s ability to produce the standard amount or number of products,

services or outcomes as described in a work description. It is not considered in isolation

but is considered based on the interrelationship with, performance and profitability.

2.4 Relationshipbetween training and development and employee productivity

Researchers have attempted to identify whether higher skill levels among the workforce

contribute to the success of business and improved performance of the economy. Overall, the

relationship is considered a positive one (Tamkin et al. 2004). Since 2001 the Treasury have

focused on workforce skills alongside innovation, enterprise, investment and competition as the

five drivers of productivity, Skills impact on productivity directly, by improving a company or

nations stock of human capital; indirectly, by impacting on other workers productivity - the

'spill over effect'; and via other drivers which encourage greater investment and innovation

(HMT, 2006).

Tamkin et al. (2004) summarise evidence that identifies the benefits of skills and training to

both the economy as a whole and to individual companies who partake in training. More

specifically it investigates whether there is an association between skills and business

performance, what size is the contribution that skills makes to performance and identifies the

role that related factors such as human resource practices and training play in achieving higher

performance.

An organization is seen to be effective and efficient if there is demonstrable increase in

productivity. Productivity can be seen as the raison d’etre of management since it provides how

efficiently production inputs are used in an economy (Bartel, 1994). As the development is

focusing more in the employee’s personal growth, successful employees prepared for positions

of greater responsibility must have analytical, human, conceptual, and specified skills. For this

reason, corporate management globally is concerned with productivity because it is regarded as a

main indicator of efficiency when comparisons are made with competitors in the labor markets

(UK.NOP Business., 2001).

The importance of productivity in any organization can hardly be overstated, that is why

the organization exposed their employees including accountant for maximum productivity.

Productivity is often seen as total output/total input. That is effectiveness of the use of the factors

of production to produce goods and services. When an organization integrates resources,

physical and human will, this will result a better output.

Babaita (2010) recommended that organization should monitor their firm’s productivity

using the following tools: employment costs per unit of output and costs as a ratio of sales value;

add value per employee; labor costs as a percentage of added value, sales valuee per employee,

etc.

Training changes uninformed employees to informed employees; training changes

unskilled or semi-skilled workers in to employees who can do their assigned tasks in the way the

organization wants them done into workers who do things the right way. Training and

development could then be seen as a mixture of activities aimed at improving the performance of

personnel in organizations for the attainment of continuous improvement in productivity.

Thus the productivity of an employee is seen as the relationship between the employee’s

input and the effectiveness of the use of this input is commonly referred to as productivity.

Therefore there is a positive correlation between personnel training and development on

productivity of the employee.

2.6 Theoretical Review

Training and Manpower Development have been defined as a process or set of activities

aimed at assisting an individual to acquire knowledge, skills and attitudes necessary for the

effective performance of specific tasks or jobs. Within the context of work in modern financial

organizations, training is a business process, which normally starts at the point of entry and

progress throughout the worker’s career.

If the above explanation of the importance and the definition of training are valid, then

training and Development program should be carried out in an organized and systematic way in

order to achieve the desired objectives.

Parker (1980) has designed a process through which Training and Manpower

Development should be carried out under the following stages and in a sequential order.

(i) Conduct Training Needs Analysis

(ii) Develop Training Objective.

(iii) Review Available Training Methods.

(iv) Design and Select Training Methods

(v) Design, Training Evaluation Approach.

(vi) Implement Training Program

(vii) Measure Training Results

2.7 Training Design and Evaluation Model

Source: Adapted from T.C. Parker “Statistical Methods for Measuring Training Results

2.8 Theoretical framework

Based on the literature review, the relationship between “training and development” and

‘employee productivity” were conceptualized, with ‘training and development” being the

independent variable and “employee productivity” being the dependent variable with reference

to the interview with the management personnel it has been noted that “culture and environment”

and “employee motivation serve as moderating variables”.

The study is based on human capital theory proposed by Schultz in 1961 and developed

by Becker in 1994. According to the theory, Human capital theory suggests that education or

training raises the productivity of workers by imparting useful knowledge and skills, hence

raising workers’ future income by increasing their lifetime earnings (Becker 1994). The human

capital model suggests that an individual’s decision to invest in training is based upon an

examination of the net present value of the costs and benefits of such an investment. Individuals

are assumed to invest in training during an initial period and receive returns to the investment in

subsequent periods. In his view, human capital is similar to “physical means of production”, e.g.,

factories and machines: one can invest in human capital (via education, training, medical

treatment) and one’s outputs depend partly on the rate of return on the human capital one owns.

Thus, human capital is a means of production, into which additional investment yields additional

output. Human capital is sustainable, but not transferable like land, labour or fixed capital.

Olaniyan and Okemakinde (2008) in their studies titled ‘Human capital Theory: implications for

Educational Development’ focused on the benefits of human capital to the nation as a whole.

They pointed out the relationship between education and economic growth. According to

Olaniyan and Okemakinde (2008) ‘many of the classical economists argued strongly that for

government active support of education on the grounds of the positive externalities that society

would gain from a more educatedlabour force and populace’.

While formal education has expanded rapidly in many countries, a large portion of human capital

accumulation in the forms of on-the-job training and other modes for working adults actually

takes place both inside and outside the working place. (jin 2001).

Some human capital advocates suggest that these great increases in learning efforts have not led

to commensurate economic gains because of the declining quality of education. For example

over the years, most research have been showing drastic fall in standard of education in Nigeria.

The biggest challenge to human capital theory as pointed out by Livingstone (1997) is

underemploymentof credential knowledge i.e. a large number of people who have invested many

years of their lives in acquiring advanced formal educational qualifications, are unable to obtain

commensurate jobs. Such situation is prevalent in most of the underdeveloped countries like

Nigeria, more emphasis is given to paper qualification rather than employee’s personal skill and

talent.

2.9 Empirical and Academic Review

A study carried out by Okotoni and Erero (2005), on the topic titled “Manpower Training

and Development in the Nigerian Public Service” aimed at identifying the experience of

Nigerian public services on manpower training and development with view to understanding the

problems being faced. The researchers found out that training and development helps to ensure

that organizational members possess the knowledge and skills they needed to perform their job

effectively, taken on new responsibilities, and adapt to changing conditions. They also found that

the experience of manpower training and development in the Nigerian public service has been

more of ruse and waste. They recommended that the government should avoid the use of quack

consultants in training the public servants.

In another study carried out by Iwuoha (2009) on the topic titled “Impact of Training and

Development Programs on Secretaries Productivity in selected Business Organization in Owerri”

aimed at identifying the adequacy of development program provided to the secretaries in the

selected business organizations in Owerri. The researcher employed a survey research design.

The population of the study was 50 respondents using simple random sampling technique, while

questionnaire was used for data collection and mean scores for data analysis. It was found that

development programs were adequately provided for the secretaries by the management of these

organizations in such areas as seminar, conferences, workshops, etc. The researcher

recommended that the secretaries should be given periodic leave with full pay to fully acquaint

them with the latest skills.

Also, lgwegbe (2009) carried out a study titled “The Role of Management (Employers) in

Human Capital Development” focused on the role of management as employers of labor in the

development of human capital. Igwegbe found that human capital development is inevitable and

the need for the entire work force to be at home with modern information and technology (ICT)

in line with global trends if organizations must remain relevant in the world today.

Babaita (2010) in a study titled “Productivity as a driving force for investment in training

and management development in the banking industry” sought to determine if productivity is a

driving force for investment in training and management development in the banking industry in

Nigeria. The population was made up of 320 old and new generation banks. Simple random

sampling techniques were used. The study relied on both qualitative and quantitative analysis of

data. Babaita found that productivity is really one of the driving forces for investment in training

and management development. He recommended that it is vital that managers, senior executives,

as well as all employees receive training.

Ugoji conducted a research on the effect of training and development on organizational

performance. The study used secondary data. Four hypotheses were developed to see the impact

of all the independent variables on the overall Organizational Performance. The results show that

training and development, on the job training, training design and delivery style have positive

significant effect on organizational performance Presented a report on the impact of training (and

vocational education) investments on company productivity and other performance indicators

using a metal analysis. The study yields a clear result that investment in training have a positive

and significant impact on company performance indicators. This result confirms the key role

attributed to the investment in skills in the European strategy for smart and sustainable growth,

Europe 2020, and the initiative agenda for new skills and jobs.

Provide advance understanding of the effects of training on organizational-level

outcomes by reviewing the results of previous studies that have investigated the relationship

between training and human resource, performance, and financial outcomes. The results of meta-

analysis from 67 studies suggest that training is positively related to human resource outcomes

and organizational performance but is only very weakly related to financial outcomes.

Furthermore, training appears to be more strongly related to organizational outcomes when it is

matched with key contextual factors such as organization capital intensity and business strategy,

in support of the contingency perspective. Further, training is related independently to

organizational outcomes in support of the universalistic perspective of strategic human resource

management rather than a configurationally perspective.

Amuno collected data from each of the 9439 permanent, salaried employees of a large

high-technology manufacturing firm to assess the effects on employee turnover of the

organization’s investment in employee development via a tuition reimbursement program.

Investment in training via tuition reimbursement decreased turnover while employees were still

taking classes.

Richard conducted a study to determine if productivity is a driving force for investment

in training and management development in the Banking Industry in Nigeria. The study relied on

both qualitative and quantitative analysis of data, using descriptive and inferential statistics. The

entire staff of the 25 commercial banks as at 2007 in Nigeria was the population of the study and

a total of 320 questionnaires were administered. The study found that productivity is really one

of the driving forces for investment in training and management development.

Anyanwu studied the effects of training on employee productivity. The paper provides a

review of the current evidence of such a relationship and offers suggestions for further

investigation. They reviewed extensive the literature in terms of research findings from studies

that had attempted measuring and understood the impact that training have on employee

productivity across various sectors. The focal point of their review was on training practices and

employee productivity and their relationship. The outcome of their findings varied. While some

studies reported a positive association between training and employee productivity, some

reported negative and some no association whatsoever.

Harbison identify some negative impacts of training on firm performance, and they

outline possible reasons for their finding. According to them, responses to the survey were given

during a period of financial difficulty, as reflected in the tendency to reduce training budgets as a

relatively easy way to cut expenses in the periods of slack demand. Where firms offer more

training, they may be doing so in an inadequate manner, either because they train in the wrong

areas or because they do not follow up on the training to ensure good results. They argue further

that it is clear that the link between training and productivity is a complex one, and there may be

many external variables which interplay to determine the nature of the impact that investment in

training has on business performance. The missing link may be in linking training investment to

other business performance mechanisms, such as ensuring delivery of training that is matched to

overall business objectives. They concluded that it may be that the training-productivity link is

weak because it has not been understood in a broader context.

Vroom conducted a study on the effect of on-the-job training on Intercontinental bank

workers. The study revealed that training brings greater confidence on workers, enriches

employee’s knowledge and increased performance skill, creates greater efficiency and

effectiveness, increases productivity and leads to higher profitability. The study further revealed

that there exist a direct relationship between manpower training and productivity of Bank

workers.

Rastogi examined the role of training and development on workers’ productivity in both

public and private organizations in Nigeria. The study also pointed out the problems of human

resource management and personal manager. The study concluded that training and development

is a long term and very sensitive function of an organization. Finally, the paper recommended

that proper implementation of training enhances individual performance and productivity.

Thang conducted a study on human resource training, organizational strategy and firm

performance in Vietnam. First, the study confirms that a positive relationship between training

and firm performance exists, not only at the level of the individual employee, as demonstrated in

previous studies, but also at company level. More specifically, training will improve the

knowledge, skills, abilities and behavior of employees leading to positive organizational

performance. The major findings indicate that companies that implemented training in 2006 have

increased sales, productivity of manufacturing companies by 0.18 percent. The manufacturing

companies that implemented training programs after 2005 found it lead to an increase of 0.32

percent in total sales and productivity per year between 2005 and 2006. They concluded that

companies should pay more attention to human resource training policy if they wish to succeed

Dess conducted a study on impact of people management practices on business

performance. The fundamental aim of the study was to aid managers in determining where to

direct their efforts in order to have most impact upon the performance of their companies. They

gathered data from an intensive ten year study of over a hundred small and medium-sized

manufacturing enterprises in the United Kingdom. The results of the study demonstrated the

relationship between employee attitudes and company performance. Overall, these results very

clearly indicate the importance of people management practices in predicting company

performance. The results suggest that, if managers wish to influence the performance of their

companies, the most important area they should emphasize is the management of people.

Grant sought to determine the impact of training and development on public sector

organizations using Ghana Ports and Harbors Authority (GPHA) as a case study. The study

assessed the training and development process of GPHA and whether training has improved

employee performance. He designed a structured questionnaire to collect primary data from

employees of GPHA. Personal interviews were also held with some management staff of the

organization. The results indicated that GPHA’s employees were not well informed about

training and development programs in the organization. Most of the employees were of the view

that training and development were effective tools for both personal and organizational success.

Sanusi carried out study on the impact of capacity building on employee productivity in

commercial banks in Kenya. The study argued that 37 failed banks in Kenya in 1998 would have

been averted if some of the problems like weak supervision and equipping employees with

expertise, necessary skills and knowledge were addressed through employee training to improve

performance of the banks. Their findings from the study reported a significant positive effect of

training and development on employee productivity and organizational performance.

Other studies also explored if there is a relationship between skills and other

organizational outcomes. Haskel found that higher skill (qualification) levels support innovation

and more sophisticated production processes and were associated with the production of higher

quality products. Also found a strong relationship between different levels of UK workforce

skills and the sophistication of products. Colombo et.al found connections between more training

and higher labor productivity across a number of UK sectors; while Adeniji found that increasing

investment in training reduces the chance of firm closure. Grip found that training of agents had

significant effects on the productivity of workers in the organization. In the same vein,

Nwachukwu are of the opinion that labor productivity growth appears to be enhanced by the

joint introduction of training and innovation.

Harel et.al attempts to find out whether staff training has any implication in job

performance, behavior, attitudes, skills, knowledge and achievement of the goals of a business

organization in Nigeria. The sample size was determined on the basis of three categories of staff

namely: general staff, senior staff and management staff. He uses chi-square to test the postulated

hypothesis. He shows that effective training leads to acquisition of skill and knowledge required

for employee to perform effectively on the job. His result reveals that training has a high positive

impact on employee and reduces the nature of hazards on the job in the accomplishment of

corporate objectives.

2.10 Observation(Gaps) and Recommendations

- The researcher observed from the above studies that none of the scholars (researchers) looked

at the impacts of training and development on the productivity of personnel rather they

concentrated their studies on the management and development of human resources in an

organization. This is the essence of the study.

- Productivity is not only related to the training exercise the overall organizational culture has to

be positive in order to excel the performance. Training adds value when the culture is supportive

and good.

- There are no direct established systems through which learned lessons are been implemented in

the organization there has to be an established formal system to disseminate the earning and

evaluate whether these learning are implementable in the organization.

Even though there is an avalanche of empirical studies on the effect of training and

development on employee’s productivity and organizational performance, the existing evidence

suggests that research in this area is promising. Most of the studies reviewed were carried out

outside the shores of Nigeria, while others were mostly done outside the financial sector. The few

studies done on the financial sector did not focus on FBN Ltd. Unlike FBN Ltd., most Nigerian

banks could not survive the recent global financial crisis. Meanwhile, most of the challenges that

had threatened the foundations of the financial sector in Nigeria had been squarely blamed on the

lack of employees training in the banking industry. This study is therefore motivated by the need

to fill these gaps.

CHAPTER THREE

METHODOLOGY

This chapter describes the research procedures to be adopted by the researcher in conducting the

research work and in accumulating data for the study. It centers on the establishment of the

nature of the information that needs to be collected, the source of such information and the

means employed in collecting the information. This depicts the targeted and covered sample and

population, the procedure followed to obtain data and the statistical tools used to analyzed the

result of the findings. Emphasis will be placed on the validity and relevance of the information

collected in order to enhance meaningful deductions which invariably will bring about

achievement of research objectives and provide answers to the research hypothesis.

3.1 Area of study

This study explored and examined critically personnel training and development and employee

productivity in a financial institution in Osun state, Nigeria. This indicates that the major data

collected and analyzed for the purpose of this research is from the First Bank of Nigeria Ltd.

Osun state was carved out of Oyo State on August 27, 1991 and its capital is Osogbo. It is

located in the South-Western part of Nigeria. It covers an area of approximately 14,875 square

kilometers, lies between longitude 04 00E and latitude 05 558’’, and it is bounded in the South

by Ogun State, in the North by Kwara State, in the West by Oyo State and in the East by Ondo

State. The State is made up of thirty Local Government Areas. The people are mostly traders,

artisans and farmers. The mineral resources include Gold, Clay, Limestone and Granite.

3.2 Research Design

This research study was based mainly on personnel training and development and employee

productivity in a financial institution with particular reference to First Bank of Nigeria Ltd.

The research study is designed to be current in both descriptive and empirical in value. The

descriptive aspect of it reinforces the behavioral pattern of workers in the organization, primarily,

the behavioral pattern also includes the contribution for the trained personnel to the

organizational goals, and the general impact of the training received in the organization.

3.3 Population and Sampling Technique

In this research study, the population will be the total number of employees in First Bank of

Nigeria ltd, Ile-Ife, Osun state. The targeted samples were 100 employees, but due to

unavailability of the targeted respondents, only 50 employees were effectively covered.

3.4 Sources of Data

The data collected for the purpose of analysis and consequently testing of the formulated

hypotheses were primary data collected using simple questionnaires administered to the

employees of the organization

3.5 Research Instrument

The questionnaire was designed to evaluate and analyze the research questions that the

research intends to answer. The questionnaire used in this research project contains closed ended

questions. The questionnaire was divided into four sections. Section A is about the demographic

and the personal information of the respondents. Section B identifies training programs available

for the employees of FBN ltd .Section C seeks to identify how training enhances productivity

and Section D identifies the relationship between training and development and employees

productivity.

3.6 Validation of research instrument

This refers to the extent to which the study actually measures what it is supposed to measure, as

well as whether operational measures have been constructed to ensure that subjective judgments

are avoided. The questionnaire is the only tool that can be used to extract the kind of information

needed to carry out this research. I structured the questionnaire in such a way that it will elicit the

appropriate information needed for the study.

3.7 Measurement of Variables

This study found out the relationship between two variables training and development and

employee productivity; and to examine how the independent variable - training and development

might explain the dependent variable – employee productivity. The expected responses from the

respondents was gathered, analyzed and used in achieving the stated objectives of the study.

3.8 Data Analysis Technique

The data from the primary source were skillfully analyzed with the use of simple analysis and

SPSS (Statistical Package for Social Sciences) and the analysis will be presented by the use of

tables and percentages. This aids quick understanding of the findings. To reduce the problem of

the quantification of the variables, attitudinal type measurement using Likert Scale used for the

opinions supplied by the respondents.

To further test and accept or reject the formulated hypotheses, the Chi-Square distribution was

employed. In this test, if the calculated values of the Chi-Square is greater than the table values

at a given level of significance, the null hypotheses would be rejected and automatically

accepting the alternative hypotheses and vice versa.

To ensure a high level of confidence is our test significance level of 0.0 and 0.05 were used.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1.0 Socio-demographic Characteristics of the Respondents

Variable Frequency PercentSex --------- ---------Male 28 56.0Female 22 44.0Total 50 100.0Age group --------- ----------21-30years 29 58.031-40years 10 20.041-50years 8 16.051 and above 3 6.0Total 50 100.0Marital status -------- ---------Single 23 46.0Married 25 50.0Divorced 1 2.0Widow/widower 1 2.0total 50 100.0Length of service --------- ---------1-5years 30 60.06-10years 11 22.011-20years 4 8.021-25years 3 6.030 above 2 4.0Total 50 100.0Current position in the organization

---------- -----------

Junior staff 21 42.0Senior staff 14 28.0Middle management 7 14.0Management level 8 16.0Total 50 100.0

Source: Field survey, 2004.

Table 4.1.0 above describes the socio-demographic characteristics of the respondents namely

age, gender, marital status, cadre/ designation and years of working experience.

Majority of the respondents are male with 28 (56.0%) while 22 (44.0%) of the respondents are

female. The age distribution shows that majority (58.0%) of the respondents are aged 21-30,

20.0% are aged 31-40, 16.0% are aged 41-50 and 6.0% are aged 51 and above i.e. most of the

respondents belong to the age group 21-30, followed by age group 31-40. The least of the

respondents are in the age groups 41-50 and 50 and above. Also majority of the respondents 64

(53.3%) are married, 22 (18.3%) are divorced, 13 (10.8%) are separated, 12 (10.0%) single while

the remaining9 (7.5%) of the respondents are widow/widower

However, more than half (60%) of the respondents have 1-5years length of service, (22.0%) of

the respondents have 6-10years length of service, 8.0% have 11-15 years of length of service,

6.0% have 21-25years length of service and the rest (4.0%) have 30 and above years of length of

service. Furthermore, the table above also revealed the distribution of respondents by their

current position in the organization.42.0% of the respondents are junior staff, 28.0% are senior

staff, followed by management staff, while only 14.0% are middle management staff.

4. 1.1 Educational Background of the Respondents

Educational background

Frequency Percent

WAEC 1 2.0OND/ NCE / other diploma

9 18.0

B.sc/B.A/HND 20 40.0higher degree in M.S.C/M.A/MBA

11 22.0

professional qualification

9 18.0

Total 50 100.0Source: Field survey, 2004.

Majority of the respondents (40.0%) from the table 4.1.1 above have B.sc /B.A/

HNDqualification, followed by 33.5% 22.0% respondents who had higher degree in

M.S.C/M.A/MBAas their qualification. Furthermore, same 18.0% of the total respondents had

OND/ NCE / other diploma and professional qualification respectively, while only 2.0%

respondents had WAEC as qualification. This means that majority has B.sc /B.A/ HND while the

least qualification is WAEC (2.0%)

Figure 1

4.2.0 Identification of Training Programs Available for the Employees of First Bank Nig. Ltd.

How often does your organization conduct training programs?

Options Frequency PercentAlways 25 50.0Sometimes 22 44.0no opinion 3 6.0Total 50 100.0

Source: Field survey, 2004.

From the table 4.2.0 above, it can be seen that half of the respondents (50.0%) claimed that their

bank always conduct training programs, Also, 44.0% claimed that their bank only conduct

training programs sometimes while the remaining 6.0% has no opinion.4.2.1 How often does the management give such training?

Options Frequency PercentYearly 18 36.0half yearly 13 26.0quarterly 19 38.0Total 50 100.0

Source: Field survey, 2004.

The table above shows that 38.0% of the respondents claimed that their management conduct

training quarterly, 36.0% claimed there is yearly and the remaining 26.0% claimed that theirs is

half yearly i.e. every six months. The result indicate that majority of the respondent conduct

their training program quarterly, followed by yearly.

4.2.2 Does management introduce development methods for training the employee?

Options Frequency Percent

agree 43 86.0

disagree 1 2.0

no opinion 6 12.0

Total 50 100.0

Source: Field survey, 2004.

The above table depicts the respondent’s opinion on whether the management introduce

development methods for training of the employees, the result showed that majority of the

respondents 86.0% agreed, 6.0% has no opinion while only 2.0% of the respondent disagreed

that the management introduce development methods for training of the employee.

4.2.3 Does the management encourage self-developmentprogram?

Options Frequency Percent

sometimes 27 54.0

often 18 36.0

none 5 10.0

Total 50 100.0

Source: Field survey, 2004.

The above table 4.2.3 above represents the respondent’s opinion on whether their management

encourage self-development program. Majority of the respondents (54.0%) claimed that their

management sometimes encourage self-development program. Furthermore, 36.0% also claimed

that their management often encourage self-development program. Contrarily, 10.0% claimed the

management didn’t encourage self-development program.

4.2.4 What form of development do the management recommended for its employees?

Options Frequency Percenton the job training

23 46.0

seminars 17 34.0simulations 1 2.0conferences 5 10.0induction 4 8.0Total 50 100.0

Source: Field survey, 2004.

The table above shows that 46.0% of the respondents claimed their management recommended

on the job training as one of the development form, followed by 34.0% who also claimed that

their management recommended seminars for their employee as one of development form.

Furthermore, 10% claimed their management recommend conferences, 8.0% claimed induction

while the remaining 2.0% claimed that their management recommended simulation as one form

of development for their employee.4.3.0 Respondents opinion on how training enhances productivity in financial institutions

STATEMENT agree Disagree No opinion

do you think training enhance organizations effectiveness

4794.0 - 3

6.0

does the training course help you to work independently and produce result

4386.0

12.0 6

12.0

‘Does the training and development programs helps employees to achieve short and long term goals

3978.0

12.0

1020.0

does training and development programs facilitate the organization in increasing the return on investment

3672.0

24.0

1224.0

has organizational productivity changed as a result of the training program

3876.0

12.0

1122.0

Source: Field survey, 2004.

The table above represents respondent’s opinion on how different training enhances productivity.

Most of the respondents (94.0%) agreed that training course help to work independently and

produce result thereby enhance productivity; none of the respondents disagreed but 6.0% has no

opinion.

Majority of the respondents (78.0%) also agreed that training and development programs helps

employees to achieve short and long term goals and the enhanced productivity, 20.0 have no

opinion and the remaining 2.0% disagreed.

Most of the respondents (72.0%) agreed that training and development programs facilitate the

organization in increasing the return on investment, 22.0 have no opinion and the remaining

2.0% disagreed. Furthermore, 72.0% of the respondents agreed training and development

programs facilitate the organization in increasing the return on investment training enhances

productivity. Additionally, 76.0% respondents agreed that organizational productivity changed as

a result of the training program, 22.0 have no opinion and the remaining 2.0% disagreed.

The result indicate that all most all the respondents claimed that training enhances organization

effectiveness, help employees to achieve short and long term goals, facilitate the organization in

increasing the return on investment, and also increase organization productivity.

4.3.1 To what extent do you think that training and development leads to an improvement in

employees’ productivity?

Options Frequency Percent

very significantly 27 54.0

Significantly 19 38.0

no opinion 4 8.0

Total 50 100.0

Source: Field survey, 2004.

The table above shows the distribution by the respondent’s opinion on the extent at which

training and development leads to an improvement in employees’ productivity. Majority (54.0%)

claimed that is very significant, followed by 38.0 who also claimed that is significant while the

remaining 8.0% of the respondents has no opinion. This mean that most of the respondents

claimed that the role training and development play in developing the employees is very

significant.

Figure 2

4.4 The relationship between form of trainings and development and employees productivity (working efficiency) in First bank Nig. plc.

What form of development do the management

Do you experience fruitful changes in working efficiency after being trained Total

N (%)recommended for its employees

AgreedN (%)

DisagreedN (%)

No opinionN (%)

On job training N (%) 20

51.3%00.0% 3

37.5%2346.0%

Seminars N (%) 14

35.9%133.3%

225.0%

1734.0%

Simulation N (%) 0

(0.0%)0 (0.0%)

1 (12.5%)

1 (2.0%)

Conferences N (%) 3

7.7%266.7%

00.0%

50.0%

Induction N (%) 25.1%

00.0% 25.0% 8.0%

Total N (%) 39

100.0

3

100.0

8

100.0

50

100.0

Source: Field survey, 2004.

The table above shows the interdependence and the relationship between the form of

trainings recommended by the management and the productivity in term of working efficiency. It

can be seen from the table that out of 100% that agreed that they experienced fruitful changes in

working efficiency after being trained, more than half (51.3%) of them participated in on job

training, followed by 35.9% who participated in seminars as a form of training. 7.7% of the

respondents attended conferences as form of training, 5.1% attended induction as form of

training while none of the respondent who attended simulation agreed that they experienced

fruitful changes in working efficiency after being trained.

However, out of those respondents who disagreed that they experienced fruitful changes

in working efficiency after being trained, majority of them (66.7%) attended conference as their

form of training, followed by 33.3% who attended seminars. In addition to this, 33.3% attended

seminars while none of the respondents who disagreed that they experienced fruitful changes in

working efficiency after being trained attends on job training, simulation and induction. Given

total percent of those who had no opinion on whether they experience fruitful changes in

working efficiency after being trained or not, 37.5% attended on the job training, same percent

(25.0%) attended seminars induction, 12.5% attended simulation and none attended conferences

as form of training. The result above therefore indicates that majority of those who experienced

fruitful changes in working efficiency after being trained attended on job training, followed by

seminars while none attended simulation. Also most of those who did not enjoy fruitful changes

in working efficiency after being trained attended conferences, followed by seminars.

Figure 3

Hypothesis Testing

Ho: there is no significant relationship between form of trainings and developmentrecommended by the management and employees productivity (working efficiency) in First Bank.Hi: there is significant relationship between form of trainings and development recommended by the management and employees productivity (working efficiency) in First Bank

The relationship between form of trainings and development recommended by the management and its employee’s productivity (working efficiency) in First Bank Plc.

What form of training and development do the management recommended for its employees

Do you experience fruitful changes in working efficiency after being trained

Chi-

Square

21.398

(p-value)

0.006

AgreedN (%)

DisagreedN (%)

No opinionN (%)

TotalN (%)

On job training N (%) 20

51.3%00.0% 3

37.5%2346.0%

Seminars N (%) 14 35.9% 133.3%

225.0%

1734.0%

SimulationN (%) 0(0.0%)

0(0.0%)

1(12.5%)

1(2.0%)

Conferences N (%)

37.7%

266.7%

00.0%

50.0%

InductionN (%) 25.1%

00.0% 25.0% 8.0%

Total N (%) 3

100.0

3

100.0

8

100.0

50

100.0

Source: Field survey, 2004.

The chi-square value in the table above is 21.393 with probability value of 0.006 at 95%

confidence interval which indicate there is significant relationship between form of trainings and

development recommended by the management and employees productivity in term working

efficiency in First BankNig.Plc. since the p-value is less than 0.05 we therefore accept Hi and

reject Ho which says there is nosignificant relationship between form of trainings

anddevelopment recommended by the management and employees productivity (working

efficiency) in First Bank.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS.

5.1 Summary

Training and development is a mixture of activities aimed at improving the performance of

personnel in organizations for the attainment of continuous improvement in productivity.

Training and personnel development assists employees to learn how to use the resources in an

approve way that allows the organizations to meet its desired output.

Changes in technologies and automation and the consequent effect they have on the existing

skills and jobs have necessitated the need for the continuous training of the employees.

Accountants are required to perform varied competencies in accounting profession that will

make them saleable in the labor market. It is this possession of skills needed by the labor market

that will enable them contribute maximally to business organizations and national development

of the Nigerian nation.

However, for the organization and government to make personnel training and development to

become effective in the business cycle, they have to tackle the challenges of introducing new

orientations on training contents, training evaluation, Attitudes to training and training

utilization.

5.2 Conclusions

The analysis conducted above revealed that personnel training and development plays a

significant role in the general performance of staff of banks in Nigeria. This is so because trained

employees will be able to translate their improved human capital into improved organization

performance. The respondents have overwhelmingly stated that increasing the knowledge and

skills of an employee will put that employee in a better position to deliver his or her basic duties.

5.3 Recommendations

The results of this study have implications for dynamic policy formulation for human capital

development in Nigeria. Therefore, the followings are some of the policy recommendations that

have the capacity of improving the productivity of the employees’ as well as the general

performance of financial institutions in Nigeria.

Firstly, there is a need to conduct training needs assessment to ensure that the right training is

given. This will enhance the competitiveness of the staff as they will be equipped with necessary

competencies and current trends within the industry.

Secondly, training programs of the banks should be on a continuous basis and not based on

survival, that is, conducting training only when a bank is confronted with particular problems.

Thus the training should be done on yearly or regular basis; hence training involves systematic,

professional and development of skills and knowledge and attitude necessary for performing

schedule of duties.

Thirdly, Accountants should be exposed to regular professional training areas such as foundation,

career development, and pre service and off the job pupilage training as to enhance their

productivity in the organization. It is also necessary for the accountants to be exposed to

seminars, conferences and workshops to enable them keep abreast with the challenges posed by

modern business offices.

The bank should make efforts to evaluate its training at the end of each course. The present

evaluation is not comprehensively enough. And on the job follow up programs should be

developed to enable the staff of training section of human resource department monitor, assess

and quantify the effectiveness of those courses.

There is need for further research in this field. In fact, the lack of secondary data on the manner

of trainings conducted and their impact on the general performance of the banks increases the

demand for further research studies in this area.

BIBLIOGRAPHY

Alwarez, K., E. Salas, and C.M. Gorofano (2004), An Integral Model of Training Evaluation and Effectiveness, Human Resource Development Review 3, pp 385-407. Quoted in Manju.S & Dr. Suresh B.H. (2011). Training Design Interventions and Implications for the productivity Effectiveness, Synergy, 9(1), pp 52-68.

Antonio Giangreco, Antonio Sebastiano and Riccardo Peccei (2009), Trainee‘s reactions to training: an analysis of the factors affecting overall satisfaction with training, The International Journal of Human Resource Management, 20(1), pp 96-111.

Brown, G. and Read, A.R., (1984), Personnel and Training Policies – Some Lessons for Western Companies, Long Range Planning, 17(2), pp 48-57.

Casio, W.F., (2000), Costing Human Resources: The Financial Impact of Behavior in Organizations, 4th edition, Cincinnati OH: South-Western. Quoted in Manju.S & Dr. Suresh B.H. (2011), Training Design Interventions and Implications for the productivity Effectiveness, Synergy, 9(1) pp 52-68.

Dowling, P.J, and Welch, D.E (2005), International Human Resource Management: Managing People in a Multinational Context, 4th Ed, Mason, O.H: Thomson South-Western. Quoted in Manju.S & Dr. Suresh B.H (2011). Training Design Interventions and Implications for the productivity Effectiveness. Synergy, 9(1) pp 52-68.

Eerde, V.W, Tang, Simon. C. K. & Talbot, Graeme (2008), The mediating role of training needs assessment and Organizational Effectiveness, The International Journal of Human Rresource Management, 19 (1), pp 63-73. Quoted in Manju.S & Dr. Suresh B.H (2011), Training Design Interventions and Implications for the productivity Effectiveness, Synergy, 9(1) pp 52-68.

Ekaterini Galanou, Constantinos-Vasilios Priporas (2009), a model for evaluating the effectiveness of middle managers ‘training courses: evidence from a major banking organization in Greece, International Journal of Training and Development, pp 221-245.

Dess GD, Picken, JC (2000) beyond productivity: How leading companies achieve superior performance by leveraging their human capital. American Management Association, New York, 29(2):141-161.

Colombo E, Stanca L (2008) the impact of training on productivity: Evidence from a large panel of firms. University of Milano-Bicocca, Department of Economics (Working papers, No 134).

Anyanwu U (2002) Productivity and Capacity Building. Proceedings of the 9th Annual Conference of the Zonal Research Units, Gateway Hotel, Abeokuta, 12-16 June.

Becker G (1964) Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. New York: Columbia University Press.

Stone R (2002) Human resource management (4th Ed.) Milton, QLD: John Wiley & Sons

Australia Ltd.

Goldstein L (1980) Training in work organizations. Annual Review Psychol., 31:229-72

Holton, E.W. Bates, R.A. & Naquin, S.S., (2000), Large-scale Performance Driven Training Needs Assessment: A Case Study, Public Personnel Management, 29, pp 249-268

Goldstein IL (1986), Training in Organizations: Needs assessment, development and evaluation. Monetery, CA: Brooks/Cole. Quoted in Ostroff Cheri (1991), Training Effectiveness measures and scoring schemes: A comparison, Personnel Psychology, pp 353- 374.

Hinrichs JR (1976), Personnel Training. In Dunnette MD (Ed.), Handbook of Industrial/Organizational Psychology, pp 829-860. New York: Rand McNally.

Adeniji MA (2002) an analysis of human resources development programs in two selected Nigerian university libraries. Unpublished MLS Thesis, Department of Library and Information Studies, University of Ibadan.

Ekaterini Galanou, Constantinos-Vasilios Priporas (2009), a model for evaluating the effectiveness of middle managers ‘training courses: evidence from a major banking organization in Greece, International Journal of Training and Development, pp 221-245.

European Centre for the Development of Vocational Training (2011) the impact of vocational education and training on company, Publications Office of the European Union, 2011 performance, Research paper.

APPENDIX

QUESTIONNAIRE

DEPARTMENT OF MANAGEMENT AND ACCOUNTING

FACULTY OF ADMINISTRATION

OBAFEMI AWOLOWO UNIVERSITY

ILE-IFE, OSUN STATE, NIGERIA.

Dear Respondent,

I am a student of the above named department and I am conducting a research personnel

training and development and employee productivity in a financial institution using First Bank

Nigeria Ltd as a case study.

This is in partial fulfillment of the award of bachelor science in management and

accounting.

Please, express honestly how you feel about these issues. All information and opinion you

voluntarily and honestly supply are strictly for academic research and will be treated with utmost

confidentially.

Thanks for your cooperation

This questionnaire is made up of four (4) sections A, B, C and D. A is the socio-demographic

data relating to the respondents, while section B, C, and D are the main body relating to the

major variables in the research topic. You are required to tick X or in the appropriate box

provided.

Section A: Demographic Data

1. Sex of respondents:

Male ( )

Female ( )

2. Age:

21-30 years ( )

31-40 years ( )

41-50 years ( )

51 and above ( )

3. Marital Status:

Single ( )

Married ( )

Divorced ( )

Widowed ( )

4. Length of service with organization:

1-5 years ( )

6-10 years ( )

11-20 years ( )

21-25years ( )

30 and above ( )

5. Educational background:

WASC ( )

OND/NCE/ Other Diploma ( )

B.Sc./B.A./HND ( )

Higher Degree in M.S.C/M.A/MBA ( )

Professional Qualification ( )

6. Current at position in the organization:

Junior staff ( )

Senior staff ( )

Middle management ( )

Management level ( )

Section B: This section seeks to identify training programs available for the employees of First

Bank Nigeria, Ltd.

7. From your observation, how often does your organization conduct training programs?

Always ( ) sometimes ( ) no opinion ( )

8. How often does the management give such training?

Yearly ( ) Half yearly ( ) quarterly ( )

9. Does management introduce development methods for training the employee?

Agree ( ) Disagree ( ) no opinion ( )

10. Does the management encourage any self- development program?

Sometimes ( ) often ( ) none ( )

11. What form of development do the management recommended for its employees?

On the job training ( )

Seminars ( )

Simulations ( )

Conferences ( )

Induction ( )

Section C: This section seeks to identify how training enhances productivity.

12. Do you think training enhance organizations effectiveness?

Agree ( ) Disagree ( ) no opinion ( )

13. Does the training course help you to work independently and produce result?

Agree ( ) Disagree ( ) no opinion ( )

14. Does the training and development programs help employees to achieve short and long

term goals?

Agree ( ) Disagree ( ) no opinion ( )

15. Does training and development programs facilitate the organization in increasing the

return on investment?

Agree ( ) Disagree ( ) no opinion ( )

16. Has organizational productivity changed as a result of the training program?

Agree ( ) Disagree ( ) no opinion ( )

17. To what extent do you think that training and development leads to an improvement in

employee’s productivity?

Very significantly ( ) significantly ( ) no opinion ( )

Section D: This section seeks to identify the relationship between training and development and

employees productivity

18. Do you think there is a relationship between personnel training and development and

employees productivity?

Agree ( ) Disagree ( ) No opinion ( )

19. Do you feel training is necessary for any employee for developing his skill?

Agree ( ) Disagree ( ) No opinion ( )

20. Does training have a significant role to play on productivity?

Agree ( ) Disagree ( ) No opinion ( )

21. Does the training and development program help to acquire new skills and knowledge

and apply them on the job?

Agree ( ) Disagree ( ) No opinion ( )

22. Do you experience fruitful changes in working efficiency after being trained?

Agree ( ) Disagree ( ) No opinion ( )