Effect of Training on Employees’ Performance and Organizational Effectiveness - A Survey on Private Banks and Leather Industry
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Date
2011-06
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Addis Ababa University
Abstract
The effectiveness and success of an organization lies on the people who form and work within the organization. Therefore, the employees in an organization to be able to perform their duties and make meaningful contributions to the success of the organizational goals need to acquire the relevant skills and knowledge. After the training programs, an evaluation is carried out to ascertain the effectiveness of the organization from the training in line with the need, which had been identified. The main focus of this study is to examine how much organizations are effective from employees’ training expenditure. The study achieved the objective of the research through survey study with sample organization which have been selected from the two industries (banking and leather) with help questionnaires for employees and interviews with human resources managers of the sample organizations. The study found sample banks and leather firms were spent 1,050,000 birr and 167,000 birr on average per year for employees’ training, respectively. But, there is great variation in training expenditure among firms in both industries, especially; the variation is high among leather firms irrespective of number of employees, over 90% of them were using subjective methods to evaluate organizational effectiveness from employees’ training expenditure and only less than (10%) of them was used Kirkpatrick Model, as evaluation tools, but no one who was used Cost-Benefit analysis or Return on Investment models as evaluation tool, both firms were moderately effective from the employees’ training expenditure irrespective the industry in which they exist and main conclusion drawn were the emphasis given for training by majority of the firm is still low, especially in leather firms organization could not evaluate their effectiveness in terms of all possible returns from the employees training expenditure as effectively and efficiently with the help of subjective measures only and result of the evaluation could be insufficient to make decision in different aspect of training for the future. Therefore, Organization should allocate sufficient amount of budget to train this key resources of the organization and they should use objective models in addition to the subjective methods, and the organizations should design their training program based the need assessment result to be effective from the training expenditure.
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Performance and Organizational Effectiveness