Impact of Training and Development on perceived Employees

Performance & Motivation

Submitted by
Zaighum Hussain

MBAR 143003

Muhammad Mehdi

MBAR 143011

Syed Hassan Kazim

MBAR 143012

Muhammad Hamza Tariq

MBAR 143028

Muhammad Talha Tahir

MBAR 143061

Submitted to:

Sir, Wasim Ahmed

Capital University of Science and Technology CUST Islamabad

DECLARATION
We hereby declare that this Project Report Impact of Training and Development on
perceived Employees Performance & Motivation submitted by us to the Department of
Business Management, Capital University of Science & Technology, Islamabad, is a bonafide
work undertaken by me and is not submitted to any other University or Institution for the
award of any degree diploma/certificate or published any time before

_____________________

______________________

Student (1) Name Signature

Student (2) Name Signature

_____________________

______________________

Student (3) Name Signature

Student (4) Name Signature

_____________________
Student (5) Name Signature

CERTIFICATION
This is to certify that this Project Report Impact of Training and Development on
perceived Employees Performance & Motivation submitted in partial fulfillment for the
reward MBA(R) Programme of Department of Business Management, Capital University of
Science & Technology, Islamabad, was carried out by Mr. Wasim Ahmed under the
guidance. This has not been submitted to any other university or institution for the reward of
any degree/diploma/certificate.

_____________________

______________________

Supervisor Name

Signature

II

ACKNOWLEDGEMENT
First of all, we are very thankful to Almighty Allah, who blessed us with skills, talent, energy
and confidence that made us successfully complete our final project of management. Though
its a useful task, it needs committed efforts, study, devotion and most of all guidance to be
accomplished successfully. Among all these elements, guidance and study is of maximum
importance.
We are very thankful to Mr. Wasim Ahmed for his massive guidance at every stage. He
did his best to make us understand everything. This project would not have been possible
without his cooperation and continuous direction.

III

EXECUTIVE SUMMARY
The purpose of this study was to find out the impact of training and development on
perceived employee performance and motivation. The result shows that training and
development has positive impact on employee performance and employee motivation.
Training and Development programs should be linked with employees promotions so that
these programs help increase employee motivation which ultimately results in high
performance. The statistical population of this study was employees of Ufone. Data was
collected using through close ended questionnaires with the use of itemization scale tool. 160
employees was selected the employees was selected using convenience sampling technique.
150 complete questionnaires with a response rate of 94% were considered during analysis.
Two sets of hypothesis are developed which relate directly to the research questions. SPSS 20
is used to perform reliability, descriptive, correlation and regression analysis.
Keywords: Training and Development, Employee Performance, Employee Motivation

IV

Table of Contents
Executive Summary .................................................................................... IV
1. Introduction and Background ..................................................................... 01
1.1. Problem Statement ............................................................................... 02
1.2. Research Question ............................................................................... 03
1.3. Research Objective .............................................................................. 03
2. Literature Review ...................................................................................... 03
2.1. Training and Development .................................................................. 03
2.2. Employee Performance ....................................................................... 04
2.3. Employee Motivation ........................................................................... 05
3. Conceptual Framework .............................................................................. 06
3.1. Hypothesis ............................................................................................ 06
4. Research Methodology ............................................................................... 06
4.1. Research Design .................................................................................. 06
4.2. Population ............................................................................................ 06
4.3. Sample Size and Sample Technique ..................................................... 07
4.4. Method of Data Collection ................................................................... 07
4.5. Reliability ............................................................................................. 08
5. Data Analysis & Results ............................................................................ 07
5.1. Descriptive Statistics ............................................................................. 07
5.2. Correlations Analysis ............................................................................ 07
5.3. Regression Analysis .............................................................................. 08
6. Conclusion ................................................................................................. 11
7. Recommendation ........................................................................................ 11
References ...................................................................................................... 13
Appendices ..................................................................................................... 15

1. Introduction and Background

In todays world businesses are facing increased competition, globalization trends, workforce
diversity and technological changes. However in order to meet these challenges and to
maintain competitive advantage, the organization will have to give training to its employees
so that they learn about the changing work environment and organizational culture. The
training and development increases the performance of employees which in result increase
the organizational performance. Businesses are now starting recognizing that their people are
important asset that helps an organization to achieve its goals and objectives successfully. In
continuously changing work environment the knowledge and skills of employees become
obsolete with the passage of time duo to which training and development of employees is
required in order to ensure that their skills and knowledge are updated according to the
changing nature of work. As employees are the internal source of an organization that can be
a core competency due to its various characteristics possessed by the employees like its
knowledge, skills, abilities, and attitudes. Training and development leads to employee
productivity that in result will increase the organizational performance.
The performance of employees can be increased by providing them training that will help
them learn skills necessary for the job. The purpose of training is to meet the present
requirement of skills needed for a job, however the purpose of employee development is to
make sure that the organization has people available from within the organization for filling
the position of higher responsibility or to prepare employees for handling future job
requirements. Training and development is a vital source in increasing the performance or
productivity of employees. The training and development costs an organization both time and
money. The organizations make huge investment in training and development in order to
ensure that right people are placed in right position at the right time. The cost and benefit
analysis of training and performance should be done to see whether there is an increase in
performance of employees after giving training to them or not. If the cost of training exceeds
its benefits then it should be abandoned. Some organizations dont or fail to measure training
effectiveness due to its expensive nature or they do not possess measurement systems.
Training and development has a positive impact on employee performance and employee
motivation. Some organizations do not consider the value or importance of training and
development, or they considered training and development as a time consuming process.
There are many advantages of training and development that results in increased
Page | 1

performance, motivation, job satisfaction, lower turnover and to learn new technological
trends.
There is no doubt that organizations are focusing more on employee performance and
employee motivation for success in order to utilize human resource effectively. Organizations
emphasize on their human resources to keep them up to date based on environmental
changes, technology and competition. In so doing organizations tend to focuses on managers
to pay special attention on human assets to attain organizational goals and objectives.
Organizations try to capture turbulent dynamic market, they strongly focus on human capital
in order to get financial solvency and competitive advantage the success of organizations
depend on employee skill, knowledge and attitude. This study, therefore, discuss the one of
the core valuable function of human resource which is training, employee performance,
organizations must see continuous employee training and development .training and
development is very important at all level of employees, due to the reason that skills erode
and become obsolete over a period of time and need to be replenished (nishtha and amit
(2010). Employees need training to respond customer and market requirement because it
keeps on changing. Organizations invest in training programs to improve performance of
employees as the success of organizations depend on skilled labor, training enhance the
performance outcome of the organization. Active usage of training and development is one of
the essential roles of human resource management, it is the very important component for
raising the level of executive capability and individual, it helps employees narrow the gaps
then they fulfill their tasks effectively. Training main objective is to increase workers ability
for present and forthcoming tasks and challenges, work ideas and capabilities (cole 2002).
Training helps employees to perform processes because it targets the employees weaknesses
and hindrance to perform the specific task efficiently. Training capture the problem fills the
gap and helps to remove negative outcomes by facilitating and providing information that are
necessary to improve their performance level.

1.1. Problem Statement

The majority of the organizations not recognizing the importance of training to increase their
employees productivity and when the economy slows or when profits decline, many
organizations first seek to cut in their training budgets. This will lead to high job turnover
then increase the cost to hire new employees which push down the organizational
profitability.
Page | 2

1.2. Research Question

What is the relationship between Training & Development and Employee

Performance?

What is the impact of Training and Development on perceived Employee Motivation

toward their performance?

1.3. Research Objective

To measure the impact Training & Development and Employees Performance

To know the impact of Training and Development on Employee Motivation &

Employee Performance

2. Literature Review
2.1. Training & Development
Workers are the most valuable things of every organization, because an excellent works
without Workers are not possible getting these things in mind every organization is investing
a huge portion of their capital in training and development. Every firm should develop its
workers according to the need of that time so that they could fight against their challengers
(Carlos A. Primo Braga, 1995). Training is wealth through-out act of improving by
expanding or enlarging the knowledge ability and attitude demanded by an individual to (do
as expected) well enough a given job or task. (Michel Armstrong, 2001). Thomas j. Watson
(founder of IBM) said about the human resource, but it takes people to build a business a
business". Organizational goals without (related to workers in general) cannot be
(accomplished or gained with effort); most of the jobs have such type of orientation which
cannot be performed without workers. Those organizations who train their worker who is
hired to perform a job well, managers of or characteristic of high rank or importance have the
confidence to get the authority and to deal with their assistants. Ohabunawa (1999).
The effect of training on employee performance (elnaga & imran, 2013) the purpose of the
study is to find the relationship between impact of training and development and performance
in addition also the motivation of employees at their work. In result that shows the positive
relationship between the variable training and development and employee performance. The
research ways of doing things that is being used of secondary research that is based on their
end results drawn by the analysis of reports, magazines, books and books that relates with the
topic.

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Baldwin & Johnson (1995) statement that minor stages of exercise resolve upturn the odds of
worker immigration after one union to another. But, workers fulfillment and reliability
upturns by complex grade of exercise to the secure then reductions the odds of worker
dissolution. (Choo & Bowley, 2007)

2.2. Employee Performance

Afshan et al. (2012) The (action of accomplishing or completing something challenging) of
particular task calculated against (already decided beforehand) or identified standards of
wholeness, of cost. Employee performance can be visible in improving in production, (act of
process of production something) simplicity in using new technology (Having a strong desire
or want to do something) employees. Employee is the main element of every study and their
(action of accomplishing or completing something challenging) and disappointment mainly
based on their performance. The above cleared-up books is about the qualities of training and
its useful influence on employee performance. If there is a good planning for making the
training events then it will be productive for both the employee and for the organization as
fine. Abdul Hameed (2011)
If workers are to knowledge elasticity and efficiency on the job, they essential to
become/gain and progress information and skills, and if they are to trust that they are
respected by the organization they effort for, then they need to get noticeable symbols of
administration's faithfulness to/capacity of the exercise and job wants. Training and
development are the procedures of capitalizing in individuals so that they are organized to
(do/complete). These procedures are part of a general (hiring, firing, training, promoting, etc.)
methods that confidently will consequence in individuals being (gave a reason to do
something) to (do/complete). (Barron and Hagerty 2001) Stephen & Bowleys (2007) the
connection among worker output and exercise which additional indications to worker
performance.
Performance capacity can be describe as routes of putting in to numbers the (wasting every
slight while working or producing somewhat) formerly efficiency of act. (A. Neely 1995)

2.3. Employee Motivation

The rational method that spring conducts drive and commands. (Krtiner 1995) The strong act
purposive manners to (accomplishing or gain with afford) clearer stated/particular, unmeant
Page | 4

needs (Buford 1995) an internal drive to make happy (by meeting a need or reaching a goal)
unsatisfied needs (Higgins 1994)
(Mahmood, Iqbal, & Sahu, 2014) The determination of this training is to form that
(associated to works in general) performs has a result in the banks of Pakistan. The
population consists of bank workforces in the Lahore area, where as the sample size is 150
and suitable sample system is used. The data group technique continued grade of queries by
using 5 point likert scale. The facts analysis mode of responsibility effects that was used
includes: (related to studying numbers) inspection that includes histograms, moving
backward and mathematical relationship-related education, and scatter diagram. The results
shows that rewards, (placing somewhat into use), and collection, and then that there also
happens a sturdy bond between them.
Receiving persons to fix their finest effort, smooth in annoying conditions, remain one of
managers' most lasting and greasy tests. Really, decoding pardon inspires us as humanoid
beings remain a centuries-old mystery. Certain of past's greatest powerful philosophers
around hominoid conduct between them Aristotle, Smith, Sigmund necessity fought to
comprehend its shades then must trained us a marvelous sum around why folks fix the
belongings they do.
Skinner's just conditions people workers' performances that main to helpful results resolve
stand recurrent then actions that main toward bad result resolve not remain recurrent
(Skinner, 1953).
Managers must definitely provision worker performances that main to positive results.
Managers must adversely support worker conduct that clues to bad results.
Maslow (1943) deliberated five heights of worker wants, physical, care, communal, ego.
Motivator issues, such as accomplishment then credit, harvest job agreement extrinsic issues,
such as emolument and job security, job dissatisfaction.

3. Conceptual Framework
Independent Variable
Training and
Development

Dependent Variable
Employee Performance

Employee Motivation
Page | 5

Explanation:
Independent Variable: The independent variable of this research is Training and
Development. Training and Development of employees have a greater impact on the
performance of employees.
Dependent Variable: The dependent variable of this research is Employee Performance and
Employee Motivation which depends upon Training and Development of employees.

3.1. Hypothesis
H1: There is significant positive impact of Training and Development on employee
performance
H2: Training & Development have positive impact on perceived Employee Motivation
toward the performance.

4. Research Methodology
This study aims to identify the impact of training and development on employee performance
and employee motivation. To measure and identify the impact of training and development
on employee's performance and employee motivation, some statistical tools or techniques are
applied on data like correlation and regression analysis through SPSS 20 software.

4.1. Research Design

The study was a survey type in the form of cross sectional study in which data were collected
once across a population through convenience sampling technique.

4.2. Population
Population was employees of Ufone. (Both Front line managers and service delivering
employees)

4.3. Sample size and Sampling Technique

The sample size was 160 from which 94% was the response rate. Study participants were
selected using convenience sampling techniques.

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4.4. Method of Data Collection

The data has been collected through closed ended questionnaire which contain 18 questions.
From which training and development contains 9 questions, employee performance 5
questions, and 4 questions were related to employee motivation. (Cayer NJ, Gordon, 1993)
Questionnaires were formed by using itemization scale.

4.5. Reliability

Reliability Statistics
Variables

Cronbach's Alpha

N of Items

TNDA

.757

EPA

.556

EMA

.765

Above table show the responses of respondents were scored and the reliability of the tool was
determined using Cronbachs Alpha. According to the alpha value should be more than 0.7,
in result that shows the scale can be considered reliable. But, in special case the alpha value
more than 0.5 is acceptable that shows the scale can be reliable (Reference: Sonder). The
tool has 18 questions i.e. 9 questions for training and development, 5 questions for Employee
Performance and 4 questions for employee motivation. The result shows that the Cronbachs
alpha ranges from 0.765 to 0.556 which show the scale is reliable.

5. Analysis of Data
5.1. Descriptive Statistics
Table - 1 Descriptive Statistics
Std.

Minimum

Maximum

Mean

TNDA

150

2.00

5.00

3.5726

.61397

EPA

150

1.80

5.00

3.6427

.59825

EMA

150

1.00

5.00

2.6750

1.00450

Deviation

Table - 1 provides the information about descriptive statistics of the variables. N denotes the
total number of sample which is taken for analysis. The standard deviation and average is
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also shown in table. Training and Development has the mean of 3.5726 with standard
deviation of 0.61397. The mean of Employee Performance is 3.6427 and standard deviation
is 0.59825.The standard deviation of Employee Motivation is 1.00450 and means is 2.6750.

5.2. Correlation Analysis

Table 2 Correlations
TNDA
TNDA

EPA

EMA

EPA

.578**

EMA

.501**

.566**

**. Correlation is significant at the 0.01 level (2-tailed).

Table - 2 shows the correlation between the independent and dependent variables. According
to the calculated values, the degree of association between training and development and
employees performance is 0.578 or 57.8%. The degree of association between training and
development an employee motivation is 0.501 or 50.1%. On the other hand, the degree of
association between employee performance and employee motivation is 0.566 or 56.6%.

5.3. Regression Analysis

Table 1 ANOVAa
Model
1

Regression

Sum of Squares

Df

Mean Square

Sig.

17.806

17.806

74.190

.000b

df

Mean Square

Sig.

37.669

49.479

.000b

a. Dependent Variable: EPA

b. Predictors: (Constant), TNDA
Table - 2 ANOVAa
Model
1

Regression

Sum of
Squares
37.669

a. Dependent Variable: EMA

b. Predictors: (Constant), TNDA

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Table 1 the analysis of table shows that the regression (ANOVA). The F value shows the
fitness of the model that is 74.190, the minimum F value for any table fit should be above
9.56. The p (sig.) value is less than .05b that is 000b that means the model is acceptable.
Table 2 the analysis of table shows that the regression (ANOVA). The F value shows the
fitness of the model that is 49.479, the minimum F value for any table fit should be above
9.56. The p (sig.) value is less than .05b that is 000b that means the model is acceptable.
Table 1 Model Summary
Model

R Square

.578a

.334

Adjusted R

Std. Error of

Square

the Estimate

.329

.48990

a. Predictors: (Constant), TNDA

Table 2 Model Summary

Model

R Square

Adjusted
R Square

Std. Error of
the Estimate

1
a. Predictors: (Constant), TNDA

.501a

.251

.245

.87253

Table 1 provides a summary output about regression statistics and number of observations
to be taken. According to calculations, regression statistics consist of 150 observations, R
square which shows the overall impact of the model which is 0.334 or 33.4%. 33.4% or 0.334
is the change in employee performance caused by training and development and rest of the
change caused by other variables.
Table 2 provides a summary output about regression statistics and number of observations
to be taken. According to calculations, regression statistics consist of 150 observations, R
square which shows the overall impact of the model which is 0.251 or 25.1%. 25.1% or 0.251
is the change in employee motivation caused by training and development and rest of the
variable caused by other variables.

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Table 1 Coefficientsa
Unstandardized

Standardized

Coefficients

Coefficients

Model

TNDA

Std. Error

Beta

.563

.065

.578

Sig.

8.613

.000

a. Dependent Variable: EPA

Table 2 Coefficientsa
Unstandardized

Standardized

Coefficients

Coefficients

Model

TNDA

Std. Error

Beta

.819

.116

.501

Sig.

7.034

.000

a. Dependent Variable: EMA

Table 1 shows the beta values for variables and constant in the model. The value of beta
mean 1 unit change in training & development brings 0.578 unit changes in employee
performance. The value of beta basically shows the expected change or increase in dependent
variable for change or increase of l unit increase in independent variable. T value is usually
use to find either the hypothesis accepts or rejects the minimum value for accepting the
hypothesis is 1.967. In above analysis table T value is 8.613 which mean hypothesis is
accepted.
Table 2 shows the beta values for variables and constant in the model. The values of beta
mean 1 unit change in training & development bring 0.501 unit change in employee
motivation. The value of beta basically shows the expected change or increase in dependent
variable for change or increase of l unit increase in independent variable. T value is usually
use to find either the hypothesis accepts or rejects the minimum value for accepting the
hypothesis is 1.967. In above analysis table T value is 7.034 which mean hypothesis is
accepted.

6. Conclusion
Training and development is a key element for improved performance; it can increase the
level of individual and organizational competency. It helps to reconcile the gap between what
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should happen and what is happening between desired targets or standards and actual levels
of work performance. Training need is any shortfall in employee performance, or potential
performance which can be remedied by appropriate training. There are many ways of
overcoming deficiencies in human performance at work, and training is one of them.
Although the study looked into the role and impact of training on employee performance in
Telecommunication sector nevertheless it can also be implemented in other sectors as well.
Training enhances skills, competency, ability and ultimately worker performance and
productivity in organizations.

7. Recommendation

Training and Development Need Analysis should be given primary importance so

that organizations can fully achieve desired training and development goals. Biasness
should be minimized while selecting the candidates for training.

Training and Development programs should be linked with employees promotions so

that these programs help increase employee motivation which ultimately results in
high performance.

Employees should be clearly communicated about the potential benefits of training

programs so that they can participate whole heartedly. Trainer should be from within
the organization because trainees feel more comfortable to communicate and discuss
issues and problems.

Evaluation of the training and development program is of vital importance because it

helps in ensuring the effectiveness of the training program. The findings of this study
suggest that training should made critical part of the organizational structure.

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References
Benedicta Appiah April, (2010), The impact of training on employee performance: A Case
Study of HFC Bank (GHANA) Ltd. Pp. 15-17
Dr. V. Rama Devi, Mr.Nagurvali Shaik; Training & Development A Jump Starter For
Employee Performance And Organizational Effectiveness; International Journal of
Social Science & Interdisciplinary Research Vol.1 Issue 7, July 2012, ISSN 2277
3630 |
Fakhar Ul Afaq, Anwar Khan, Relationship of Training with Employees Performance In
Hoteling Industry: Case Of Pearl Continental Hotels In Pakistan;
Fernie and Metcalf. (1999). Impact of training on employee performance. Institute of
Interdisciplinary Business Research, 648.
Gordon. (1992). Impact of training on employee performance. Interdisciplinary Journal of
Contemporary Research in Business, 647.
Manu. (2004). Training and development techniques for improving organizational Training
and development
Oni, D. O., Ijaiya, M. A., & Mohammed, M. (2013, May). Assessing the Impact of Training
and Management Development in the Nigerian Banking Industry. international
journal of business and social science, 4(5), 160-166.
Reid M, Barrington H, Kenney J. (1992), Training interventions, 2nd ed. London: Institute
of Personnel Management;
Sultana, a., irum, s., ahmed, k., & mehmood, n. (2012, october). impact of training on
employee performancew: a study of telecommunication sector in pakistan.
interdisciplinary journal of contemporary research in business, 4(6), 646-661.

Page | 12

Verman, d., & goyal, r. (2011, october). a study of training in insurance and their impact on
employees productivity. international journal of research in economics and social
sciences, 1(1), 31-45.
VanWart M, Cayer NJ, Cork S., (1993), Handbook of training and development for the
public sector, San Francisco, CA: Jossey -Bass; 1993.

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Appendices
Questionnaire
Dear Participants,
I am a student of MBA (Regular) at Capital University of Science &
Technology, Islamabad. I am conducting a research on Impact of Training
and Development on perceived Employees Performance & Motivation as
a partial fulfillment of my course. Kindly fill up this information and return.
Any information obtained for this purpose will be kept strictly confidential and
will only be used for academic purpose. Your cooperation will be highly
appreciated in this regard.
__________________________________________________________________________
Please Answer the Following questions:
Designation:

i) Customer Services Representative (CSR)

ii) Supervisor

iii) Manager
Gender:

i) Male

ii) Female

Marital Status:

i) Single

ii) Married

Age:

20..30

Employment Status:
Experience:

31..40

i) Permanent

Up to 2 years

41..50

51..60

ii) Contractual

3-------5 years

6-------9 years

More than10
years

Page | 14

Section # 1: Training & Development

Questions

Strongly
Disagree
(1)

There

are

formal

programmers
1

to

Strongly
Disagree Neutral Agree
(2)

(3)

(4)

Agree
(5)

training

teach

new

employees the skills they need to

perform their jobs?

I have received the training i need

to do a good job
I would like more training
Trainers who deliver the required
training are competent enough
I

feel

that

my

level

of

participation was high at the time

of training
My organization trains employees

on skills that prepare them for

future

jobs

and

career

development
My organization provides career
7

counseling

and

planning

assistance to employees
My
8

organization

allows

employees to have the time to

learn new skills that prepare them
for future jobs

Page | 15

Do you feel the change in the

9

enthusiasm after attending the

development workshop

Section # 2: Employee Performance

Questions

Strongly
Disagree
(1)

10

am

satisfied

with

Strongly
Disagree Neutral Agree
(2)

(3)

(4)

Agree
(5)

my

performance because it is mostly

good
11

am

encouraged

by

my

supervisors when i performed a

good job
12

My performance is better than

that of my colleagues with
similar qualification

13

I am proud in performing better

for this organization

14

Management

makes

wise

decisions regarding employee

performance

Page | 16

Section # 3: Employee Motivation

Questions

Strongly
Disagree
(1)

15

Strongly
Disagree Neutral Agree
(2)

(3)

(4)

Agree
(5)

The salary increments given to

employees who do their jobs
very well motivate them

16

I am satisfied with the salary I

draw at present

17

I am satisfied with the lunch

break, rest breaks and leaves
given in the organization

18

The

employees

in

the

organization feel secured in their

job

Gordon. (1992). Impact of training on employee performance. Interdisciplinary Journal of

Contemporary Research in Business.
VanWart M, Cayer NJ, Cork S., (1993), Handbook of training and development for the
public sector, San Francisco, CA: Jossey -Bass; 1993.

Page | 17