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CHAPTER ONE

INTRODUCTION

1.1    Background to the Study

Training is the organised way in which organisations provide development and enhance quality of new and existing employees. Training is viewed as a systematic approach to learning and development that improves the individual’s, group’s and/organization’s mode of performance (Ekpenyong, 1984). Thus it is the series of activities embarked upon by organisations that lead to knowledge or skills acquisition for growing purposes, thereby contributing to the well being and performance of human capital, organisation, as well as the society at large.  Simpson (2002) viewed training as an act of intervention to improve organisation’s goods and services quality in stiff competition by improvements in technical skills of employees. Thus the success of organisations is dependent on its knowledgeable, skilled as well as experienced workforce. Therefore in order to maintain sustainability, organisations must see continuous employee training and development as valuable ingredient. Training which actually brings about employee performance is very essential and needs utmost attention at all employee levels, due to the reason that skills erode and become obsolete over a period of time and has to be replenished (Afshan et al 2012). However, Goldstein & Ford (2002) viewed training as an instrument that fundamentally affects the successful accomplishment of organizations’ goals and objectives. That is, the optimum goal of every organization is to generate revenue and maximize profit as well as having a vital tool to realize an efficient and effective workforce. Thus a workforce is only efficient and effective if the appropriate training and development is provided for such and therefore leading to productivity.

In employee development, which directly implies acquisition of new knowledge and skills for purpose of growing, organisations must provide employees with development programmes in order to enhance their capabilities, since employee development is gaining an increasingly critical and strategic imperative in organizations in the current business environment (Bartram and  Callinan, 2002). Thus organisations need to invest in continuous employee development in order to maintain employees as well as the organisation’s success (Chay and Norman, 2003). That is, training has been invaluable in increasing productivity of organizations. It does not only enhance employees resourcefulness, but also provides them with an opportunity to virtually learn their jobs and perform more competently, thereby increasing not only employees’ productivity but also organizations’ productivity as well as performance. In other words, researches of different kinds indicate the positive impact of training on employees’ productivity. Training as a process is one of the most pervasive methods to enhance the productivity of individuals and communicating organizational goals to personnel (Ying Chu, 2004).

Investing in training employees on decision making, teamwork, problem-solving and interpersonal relations has beneficial impact on the organizations’ level of growth, as well as impacting on employees’ performance. Training affects employees’ behaviours and their working skills which results, into employees enhanced performance as well as constructive changes (Heyes & Stuart, 1996). However, training is the most effective way of motivating and retaining high quality human resources within an organization (Bartram et al 2002). Thus, one major area of the Human Resource Management function which is of particular relevance to the effective use of human resources is training. In order to sustain economic growth and effective performance, it is important  to optimize the contribution of employees to the aims and goals of the organization.

The importance of training as a central role of management has long been recognized. In order to contribute uniquely to expected vision, ability and performance of organization, training is necessary to ensure an adequate supply of staff that is technically and socially competent and capable of career development into specialist departments or management positions. Therefore for continual staff development, training fulfils an important part of this process.  That is, training should be viewed as an integral part of the process of total quality management. However, we may add that technological developments and organizational change have gradually led some employers to the realization that success lies in the skills and abilities of their employees through considerable and continuous investment in training and development, but many organizations meet their needs for training in an ad hoc and haphazard way. These type of organizations are more or less unplanned and unsystematic. To avoid this, training must be systematically posed in the organization. This study empirically investigates staff training and employee performance in Guinness Nigeria plc, Edo State to determine the weakness and proffer necessary recommendations. It has been observed that from the last decade Guinness has been one of the fastest growing sectors in Nigeria. This is the result of increasing demand for well trained workforce. The study focuses on staff training and employee performance. That is, for performance, innovativeness and competitiveness to be actualized, the most vital ingredient is workforce’s knowledge and skills. If an organization wants to remain competitive then it has to maintain continuous improvement of its workplace through education, training and technological development.  Invariably, employer should know that to attain success demands the enhancement of employee skills and abilities, and this required uninterrupted investment in training and development.

1.2     Statement of the Research Problems

There is a correlation between training, manpower development, and performance. The linkage hinges on the fact that training and manpower development activities, if specifically directed brings about the acquisition of professional competence, attitudes and behaviours which in turn contributes extensively to improvement in job performance (Bartlett, 2001). Employee is a key element of the organization’s growth. The success or failure of the organization depends on employee performance. Therefore, the relationship between employee training (employee learning, skill growth, self directed, employee attitude) and employee performance and growth are areas that should constantly demand the attention of researchers. Employee performance depends on many factors like job satisfaction, knowledge and management but there is a relationship between training and performance (Raymond, 1996).This shows that employee training is important for the performance of the organization and development. It is beneficial for the employee to improve his performance. It is very difficult for an employee to perform well at the job place without any pre-training (Tai, 2006). Thus, trained employees perform well as compared to untrained employees (Nick and James, 2009). It is very necessary for any organization to give its employees needed training for overall goal attainment of the organization through a better performance (Shepard et al, 2003).

To attain profit, most organizations are so focused on the marketing department to increase advertisement budget to boost sales of their products. Nevertheless, these profits boosting styles are appropriate, but in most cases, cannot guarantee increase without a well trained staff that are creative, futuristic and posses the ability to churn out product that meet the pressing needs of customers in the most appropriate way. Effectiveness of organization hinges on its achievement and sustenance of profitability and viability. Huge efforts have been made to increase sales and profit without looking at the effect of improved manpower ability in the production of goods and services that give rise to profit. Sociologically, to ascertain the constraints to regular staff training by organization become advantageous.

Firms with higher levels of staff training tend to have greater growth ambitions (Scholl, 2003). Thus major determinants of organizational growth depend largely on continuous training and staff motivation. Some organizations recognize their manpower as one of contributing factors for growth but do not allocate much developmental attention to it. A highly motivated manpower has lower productivity without adequate training; and without training manpower cannot be motivated to increase performance. That employee performance is directly proportional to their organizational performance is an assumption left adequately untested (Wright & Geroy, 2001).Therefore, there is need to empirically ascertain if manpower training does induce worker’s higher performance and productivity ,since organization’s performance depends on individual performance (Tracey et al 2001). 

However, human resources must be equipped with strategies to coordinate raw materials, finances, machines for the avoidance of wastage. It means therefore, the quality of human effort involved in organization must be given adequate attention to enable performance and sustainability. In other words, the best management practices in terms of human resources management is being in possession of current understanding of its manpower in terms of individual  and group values, learning capacities and perception(Michael, 2000). Formation and expression of perception in organization determine and influence behaviors and how meaning  attached to organization programmes, activities and purposes. Training is organized usually for employees by management, and how successful the training is, largely depends on how the beneficiary (employees) think, see or make sense of it. From available literature, it is proved that there is little research attention on this aspect of manpower training. This study evaluating the employees perception of staff training and performance in Guinness Plc Benin, Nigeria. Therefore  if training and retraining is a function of observed training needs and the amount of changes which have taken place in the techniques of production (Champathes, 2006).  Then Investigation is needed to ascertain whether employees’ perception of training given to them are relevant and suitable for adequate performance.

1.3       Research Questions

Empirical questions, which this study seeks to answer are:

1.  How appropriate are the staff training programmes?

2.  Does staff training contribute to the widening of organizational profit margin?

3.  What are the social constraints to regular and adequate staff training?

4.  What are the contributions of staff training on workers’ productivity and attitude to work?

5.  What are the determinants and nature of employees’ perception of staff training?

1.4    Objectives of the Study

The focus of this research is on employees’ perception of staff training and performance in Guinness Nigeria plc, Benin City, Edo State. It has two major objectives; general and specific objectives. The general objective is to explore  employees’ perception on training and performance in Guinness Nigeria plc, Benin City. Extracting from the general objectives are five specific objectives as follows:

1.  Evaluate the appropriateness of staff training given to workers in Guinness Nigeria plc.

2.  Assess the impact of staff training on organization’s financial turnover and profit margin in Guinness Nigeria plc.

3.  Investigate constraints to regular staff training in Guinness Nigeria plc.

4.  Examine the impact of staff training on workers attitude to work and productivity in Guinness Nigeria plc.

5.  Examine employee’s perception of staff training in Guinness Nigeria plc.

1.5   Research Hypotheses

The under listed are represented by the propositions with which this study searched for the relationship between manpower training and organizational growth.

Ho1:  There is no significant relationship between training designed for a job and the learning of new relevant skills and knowledge from the training.

Ho2:  There is no significant relationship between the increase in company profit and the extent of the contribution of training to the company’s profit increase.

Ho3:  There is no significant relationship between the company’s staff training programmes and improvement in workers performance/productivity.

Ho4:  There is no significant relationship between the enjoyment of job and improvement in productivity due to training.

Ho5:  There is no significant relationship between the training designed for jobs and improvement/increase in work performance.

1.6   Significance of the Study

Training of employees is an essential activity for all organisations. Training provides employees with the key knowledge and skills that they need to perform their job. That is, management should not only identify requirement, specific skill, ability and offer employment based on minimum or specific qualification as well as provide them with tools and materials to discharge their tasks, but to consider the growth of company/organization through training to assess psychosocial forces in the causal relationship between staff training and organisation growth.

However, many organizations are curious about the importance of manpower training as a way to realize maximum growth of organization, but have little or no knowledge on how to go about such manpower training or programmes that enhance organizational success and growth. The result from findings and recommendations of this study will help all stakeholders in organizations to know the level or impact of equipping employee with the appropriate and latest skills, and how knowledge on individual and group performance can affect organizational growth. Likewise, benefit from this study will bring to knowledge of those involved in training, planning and execution the extent to which psychosocial factors, from employee angle, affect training result and purpose. In addition, the challenges to appropriate and regular training of employee will be exposed in this research work. This will help management to discover and handle issues that would impede appropriate training of manpower to enable it achieve the benefits and goals of the organization.

1.7    Scope of the Study

This study conducted within the organizational framework of Guinness Nigeria plc, Benin City, located at Ikpoba Okha Local Government Area of Edo State. Data relating to employees perception of staff training on worker productivity, and workers performance/growth together with appropriateness, constraints, and workers perceptions of training were obtained from both employee and members of management.

1.8      Definition of Terms

Training: This is formal exposition and teaching of employees the strategies, skills, technology and technical-know-how which they evidently did not have prior to the teaching or exposition.

Employees Perception: This refers to how employees see or understand the effect of training (positive or negative) given to them.

Staff/Manpower: This simply refers to members of staff, personnel, employees, and workers that are employed or in pay roll of Guinness Nigeria Plc.

Management Staff: These are personnel that are in the company’s management cadre that make major decisions that affect and influence non-management employees’ activities in the company.

Workers’ Productivity: This refers to the ability of employees to handle tasks according or more than the expected level under an objective work condition.

Performance/Growth: This refers to a situation in which the company experiences increasing output, sales and profit, as well as meeting yearly or quarterly targets.