The Impact of Training on Employees Performance in Banking Sector

Today, nature of the working environment changes due to globalization, technology changes and economic environment changes. So firm is facing increased competition (Evans, Pucik  & Barsoux 2002). To faces that competition, firm should provide better training to their employees to face these challenges and further enhance their performance. Because, the success or failure of firm is depending on quality of human resources as well as orientation. And also, to enhance performance of firm, it is important to optimize the contribution of employees‟ rewards achievement of aims and goals of the firm (Armstrong 1999). 

Employees of a firm can be identified as a source of success. Therefore, firm reach to success firm should provide training for their employees. Right employee training at the correct time provides better advantage to the firm in increase knowledge, productivity, loyalty and contribution (Healthfield 2012). According to Mulins (2007), training is most essential to ensure adequate supply of employees that are technically and socially competent for both departmental and management positions. Armstrong (2001) defines training is a formal and systematic modification of behavior through the learning. That learning obtained as a result of advises, job experience, education and development experience. Training is a planned process to modify employees‟ knowledge, skills and attitudes through the learning to do activities (Beardwell & Holden 1997).

Training and employee’s performance are significant factors to the firm that are interrelated to each other. Training programs play an important role to measure the employees‟ capabilities and firm capabilities (Sahinidis & Bouris 2008). Performance can be measure using different factors. Performance includes both behavior and results. When managing performance those behavior and results should be considered (Armstrong 2000). Employees‟ performance can be defined as a group of individual behaviors that make big effort to achieve firm‟s objectives. Employees‟ performance mainly depends on verities of factors such as employees‟ motivation, performance appraisals, job security, working environment and rewards (Saeed & Asghar 2012).

The organisation which I work (Hatton National Bank PLC) continues its efforts with a new vigor towards inculcating a culture of learning among the whole staff providing opportunities for their growth, job satisfaction and improving knowledge, skills and attitude.

HNB was one of the first organizations in Sri Lanka to introduce e learning for its staff and recently bank introduced HNB Talent Space, a cloud based learning solution and can be accessed anytime, anywhere through any personal device.The system has many features such as courses, library, discussion boards, examination modules, ranks and badges and has been developed as an interactive mechanism for learning with social media aspects to cater to the needs of the young staff in the Bank.

In present business world, technologies are changed rapidly. That is not only benefit for the organization but also risk for the organization. To work with those technologies, organization has talented employees. If not organization cannot face increase competencies. For the purpose of secure employment in future, employees will have better knowledge and skills. Organization should identify training needs for their employees to provide successful training program. Most planned programs which are include in training that programs designed to enhance performance at individual, group or organization levels (Cascio 1992).

Employee’s performance    

Employees are heart of the organization. Without them organization cannot reach their expectations. Employees of organization who should know what are the key things they want to do their job in effective manner. Every employee must know about performance expectation and goals of their organization. For that employees involved in planning process to achieve goals and objectives of organization, what need to be done, how it. should be done (Terrington 1995). Key of the effective management system is managing employees‟ performance every day (Price 2005). That explain setting goals, clear explanation and providing better feedback to the employees are helping to employees perform well. Organization management involves establishing employees‟ goals. It affected to employees performance. Because it is motivate employees to do their job well (Armstrong 2003).

Details of key training programs conducted to employees of Hatton National Bank during the year 2019 as follows.

Table 1 – Training Programmed Conducted by HNB during 2019

Core Training Areas	No. of Programs	No. of Beneficiaries
Sales Culture/Selling skills	59	1081
Service culture/Customer service Excellence	30	899
Credit Culture	31	109
Leadership	20	222

Source – HNB Annual Report 2019

Details of key human capital indicators in banking sector during the period of 2018-2019 are given below.

Table 2 – Key human capital indicators in Banks during the period 2018-2019

Perform area	HNB	Sampath Bank	Seylan Bank	BOC
Total employees (Nos)	4913	4134	3360	8724
Investment in training and development(LKR Mn)	48.2	55.7	44.0	338
Total training Hours	189,515	138,900	91,962	11,768
Learning Hours per Employee	38.5	33.6	27.3	29.0

\Source – HNB Annual Report 2019/Sampath Bank Annual report 2019/BOC Annual report 2018/ Seylan Bank Annual report 2018

According to the above, Employees are more valuable resource than other resources in the organization. If organization has more talent employees, employer can earn more goodwill, profit and also that helps to became leader in the industry. Hence each and every organization  should give training opportunities to their employees in order to increase their talent, skill & knowledge  . And also that makes good impression about the organization to the society.

Conclusion

In a competitive business world, training has been highlighting as an essential factor for enhance the employee’s performance in the organization. The purpose of this article is to examine the impact of training on employee performance in the firm.

Organization should put big effort to enhance training valuation and learning culture in order to increase the employee performance. Even through two dimensions (Training Evaluation and Learning Culture) do not have significant relationship with employee performance.This article helps to the organization to recognize what are the issues regarding the training program. What type of training needs to employees, what the employees are expectation for their training and firm can get solution to overcome these issues. It can help to employer to achieve employee performance easily.

References 

• Armstrong, M., (2000)., Understanding Training. Human Resource Management Practice. 8th Edition.Kogan page limited, London. pp: 543.
• Armstrong, M. (2001) A handbook of human resource management practice, 8th edition, Kogan Page, London
• Aruna Shantha. " The Impact of Training on Employees Performance in Banking Sector: With Special Reference to Bank of Ceylon in Sri Lanka." IOSR Journal of Humanities and Social Science (IOSR-JHSS). vol. 24 no. 06, 2019, pp. 34-42.
• Breadwell, I., & Holden, L. (1998). Human Resource Management: A contemporary Perspective. New Delhi: Macmillan India Limited.
• Bank of Ceylon (2018),Annual Report 2018, Available at  : https://web.boc.lk/assets/reports/annual/BOC_AR_2018.pdf ( Accessed: 01 May 2020)
• Cascio, W. F. (1992). Managing Human Resources: Productivity, Quality of Work life, Profit. McGraw-Hill Inc.
• Evans, P., Pucik, V., & Barsoux, J. L. (2002). The global Challenge:Framework for international Human Resources Management.Boston. McGraw-Hill.
• Healthfield, S. M. (2012). Training: Your investment on people development and retention. Retrieved January 21, 2018, from About.com Guide. Human
• Hatton National Bank PLC (2019),Annual Report 2019, Available at  : https://www.hnb.net/images/annual_reports/2019/integrated-report-2019.pdf( Accessed: 01 May 2020)
• Mullins, L. J. (2005). Management and Organizational Behavior. London: FT Pitman.
• Price, A. (2005). Brown MannClare,human resources development.
• Sampath Bank PLC (2019),Annual Report 2019, Available at : https://www.sampath.lk/images/annual_reports/ar2019.pdf ( Accessed: 01 May 2020)
• Seylan Bank (2019),Annual Report 2019, Available at : https://www.seylan.lk/sites/default/files/Seylan-Bank-PLC-Annual-Report-2019.pdf ( Accessed: 01 May 2020)
• Sahinidis, A. G., & Bouris, J. (2008). Employee perceived training effectiveness relationship toemployee attitudes. Journal of European Industrial Training, 63-76.
• Sujatha S,Santhana K,Collins M,Kumar S (2014, Exploring the Effectiveness of Training & Development Programmes (A Study on Banks); Pensee Journal; Vol 76
• Saeed, M. M., & Asghar, M. A. (2012). Examining the Relationship between Training, Motivation and Employees Job Performance – The Moderating Role of Person Job Fit. Journal of Basic and Applied Scientific Research.