CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
Over the years, stiff competition among
various organizations has made management of corporations to strategically
align their human resource to achieve organizational goals. The importance of Training
and development and Development is obvious given the growing complexity of the
work environment, the rapid change in organization and advancement in
technology, among other things. Training and development and development helps
to ensure that organizational members possess the knowledge and skill they need
to perform their jobs effectively; take on new responsibilities, and adapt to
changing conditions. Despite the recognition of the importance of training and
development by management experts and government as expressed in white papers
on various reforms in Nigeria, the experience of manpower training and
development and development in the Nigerian public service has been more of
ruse and waste. Until recently there has been a general resistance to
investment in training and development in the public service because of the
belief that “employee hired under a merit system must be presumed to be
qualified, that there were already trained for their job, and that if this was
not so, it was at fault” (Dessler, 2005).
In global context, employee retention is
consideredimmensely important. Most of the companies arejudged on the basis of
their turnover rate. The rate ofturnover affects the performance of an
organization. Lowturnover ensures that organization is retaining theircompetent
employees by providing them superiorenvironment which increases the performance
ofindividual employee.
Globally there are few companies like;
SASGeneral Mills has a turnover rate of 2%, SC Johnson &Sons, Intel,
meridian health and national instrument hasthe turnover rate of 3%. It means that
these multinationalcompanies are retaining their employees while ensuringtheir
high performance.
Training and development is one of the
most important factors inretaining employees in these organizations. By
knowingthe factors of retention or the effect of training and development
onretention this study can help those organizations toretain their employees
which has high turnover rate.
In today’s competitive environment companies are
struggling hard to design a mostappropriate strategy that could enhance the
retention rate and pulls the turnover ratedownward. Organizations have realized
that competitive advantage could be attained byemployees’ skills. There is a
great importance of an appropriate retention strategy;many retention strategies
are designed that are related to provision of training and development
toemployees, and compensation etc. Fheili
(2007)believes thatorganizations are not interested in providing training
and developments that are generalized in nature.
They are focusing on specialized training and
developments which is relevant to a specific task and makethe employees unfit
for competitors use. They are limiting employees’ ability to switch toanother
job in an industry. Organizations are finding ways to make the
employeesspecialized rather than a generalized one, while rest of the
organizations considertraining and development as an investment on employees
and expect a return in the form of commitmentand retention (Danlami Sani
Abdul kadir et al 2012).
1.2 STATEMENT OF THE PROBLEM
High labour turnover damages the
organization through increased costs of recruitment and selection, delayed
service delivery and low morale amongst employees. Kabungaidze et al. (2013)
argues that such activities greatly affect organizational success to prosper in
today‘s competitive economy due to their inability to retain the right quality
of employees. There also seems to be a grey area between training and
development and employee retention because most researches on the impact of training
and development on employee retention have shown inconclusive results (Coetzee
and Schreuder 2013; Terera and Ngirande 2014).
Another factor is that although various
researches were conducted on the impact of training and development in organizations,
not enough research has been conducted in higher learning institutions to
provide empirical support for the impact of training and development on
attitudinal factors such as organizational commitment and employee retention
especially among administrative staff in higher learning institutions.
Therefore the research seeks to
investigate the impact of training and development on employee retention.
1.3
OBJECTIVES OF THE STUDY
The
main objective of the study is to critically examine the impact of training and
development and development on employee retention in an organization. Specific
objectives of the study are:
1. To identify the factors affecting high
employee turnover in an organization.
2. To identify the effect of training and
development, its type and duration on employee retention in an organization.
3. To identify the extent by which
management support and rewards affect employee retention.
1.4 RESEARCH QUESTIONS
In-order
to guide the study and achieve the objectives of the study, the following
research questions will be used for the study:
1. What are the factors affecting high
employee turnover in an organization?
2. What effects do training and development
and development have on employee retention?
3. How does management support and rewards
affect employee retention?
1.5 RESEARCH HYPOTHESIS
Ho:
There is no significant relationship between training and development/development
on employee retention in an organization.
Hi:
There is a significant relationship between training and development/development
on employee retention in an organization.
1.6 SIGNIFICANCE OF THE STUDY
The study will help firms understand
the importance of training and development programs. It will also enable them
structure their training and development programs to make them more effective
in terms of helping to improve the efficiency of the workforce and lead to less
employee turnover. This also ensures the existence of a pool of skilled
workforce who could be utilized for national development. Labour is a major
input to the success of the company. If labour is efficient it will help
improve the performance of the company. As companies perform better they are
able to increase output and contribute more to the economy. They are also able
to grow and hire more people thus helping to decrease the level of
unemployment. As companies perform better, they are also able to compete better
enabling the economy to remain vibrant.
The study will also be of great benefit
to student researchers who wish to explore more into the impact training and
development has had on the overall performance of employees in various
organizations. The study will serve as a guide to these students who may
further get more insights into the recommendations and findings from the study
thereby, forming an empirical literature for them.
1.7 SCOPE OF THE STUDY
The study is limited to the role and
impact that training and development have on the performance of employees of
First bank, using their branch office in Umuahia, Abia State as the focus
point. The branch office constitutes an important location of First Bank and
holds a large population of employees.
1.8 DEFINITION OF TERMS
Training and development:Training and development could be seen
as an Organizational effort aimed at helping an employee to acquire basic
skills required for the efficient and effective execution of the function for
which he/she is hired for.
Planning: Is a strategy by which Organization
ensures that right number of employees with the right talent/skill occupy the
right position of the Organization. It is a deliberate effort put in place to
attain a target goal.
Efficiency: This refers to an input-output
relationship that is maximum work achieved for a minimum time or result. It is
a notion of ‘Optimization’ whereby maximum satisfaction is obtained for a given
out lay of resources.
Effectiveness: This is referred to how frequently and
perfectly human or machine are able to carry out a task leading to a required
output that always resulted to an Organizational efficiency. Effectiveness is
therefore a means to an end”.
Organization: This is referred to as two (2) or more
people working together in a co-ordinated manner to attain group results.
Performance: The accomplishment of a given task
measured against preset known standards of accuracy, completeness, cost,
and speed. In a contract, performance is deemed
to be the fulfillment of an obligation, in a manner that releases the performer from all liabilities under the contract.
Productivity: Productivity is the ratio of output to inputs in production; it is an average
measure of the efficiency of production. Efficiency of production means
production’s capability to create incomes which is measured by the formula real
output value minus real input value.
Output: Output is the term denoting either an exit or changes which exit a
system
and which activate/modify a process. It is an abstract concept, used in
the modeling, system(s) design and system(s)
exploitation.
Employee: An employee is anyone who has agreed
to be employed, under a contract of service, to work for some form of payment.
This can include wages, salary, commission and piece rates.
Employee Retention: This
refers to the ability of an organization to retain its employees.
Employee turnover: This
refers to the number or percentage of workers who leave an organization and are
replaced by new employees
Seminar:
This is, generally, a form of academic instruction, either at an academic institution or offered by a commercial or
professional organization. It has the function of bringing together small
groups for recurring meetings, focusing each time on some particular subject,
in which everyone present is requested to actively participate.
Workshop: a gathering of small group of
individuals for academic conference or job training and development.
REFERENCES
Ahmad, K., 2011. Person-Environment Fit: The
Missing Link in the
Organizational Culture -Commitment Relationship. International Journal
ofBusiness and Management, 6(11), 11-20.
Coetzee M, Schreuder D 2013. Personnel
Psychology:An Applied
Perspective. South Africa: Oxford UniversityPress.
Dessler G. (2005): Human Resource Management. Pearson
Education Incorporation, Upper saddleriver, New Jersey, 07458.
Fheili, M., 2007. Employee turnover: an HR risk with
firm-specific
context.Journal
of Operational Risk, 2(3), 69-84.
Kabungaidze T, Mahlatshana N, Ngirande
H 2013. Theimpact of job
satisfaction and some demographicvariables on employee
turnover intentions. InternationalJournal of Business Administration,
4(1):53-65.
Terera SR, Ngirande H 2014. The impact
of rewardson job
satisfaction and employee retention. MediterraneanJournal
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