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NECESSITY OF TRAINING AND DEVELOPMENT IN ANY ORGANIZATION


INTRODUCTION

As organizations try to survive in the turbulent dynamic market, strong emphasis must be laid on human capital in order to be competitive and financially solvent.  However, there are other factors that affect organizations’ success; organizations must possess productive (i.e. effective and efficient) employees. In addition, organizations differentiating on the basis of human capital due to its intangible characteristics such as knowledge, skills, and motivation of the workforce increasingly see it as invaluable in order to remain sustainable in the market. Thus organizations should have employees that have the capability of adjusting to a swift dynamic business environment (Annual Report 2017 Seylan Bank PLC).

Seylan Bank PLC, (2017) in spend more than Rs. 6 Million and 369 training program and 78,610 hours and it cost the profit per employee was Rs. 1.38 Million annually on employee training and development. In an environment where there is high uncertainty tends to present organizations with high risk,  the knowledge of business and market intelligence present organizations with a reliable competitive advantages.  Therefore, knowledge is turning to basic capital that triggers development.  The success of organizations is however dependent on its knowledgeable, skilled as well as experienced workforce. Therefore, in order to maintain sustainability, organizations must see continuous employee training and development as invaluable. Training and development is very essential at all employee levels, due to the reason that skills erode and become obsolete over a period of time and have to be replenished (Nishtha  and Amit  (2010).

Therefore, the Seylan bank PLC also identified its real outcome and it is essential to the development of the individual and resulting success it brings to the bank as the bank to complete successfully in the corporate arena. It has that investing in continuing education and training of its employees will not only benefit the employee but the bank as well. Consequently, the bank has adopted a comprehensive development plan which encompasses technical and soft skills training, leadership development, on the job training, experiential training and canceling. All bank employees discuss their carrier development with their respective managers as part of the annual appraisal (Annual Report 2017 Seylan Bank PLC).

VIDEO –The importance of Training and Development for employees performance


(Source: Goldberg, S. (2019). 

List of references

Goldberg, S. (2019). Training and Development is Crucial for Good Employee Performance - Optimus Performance. [online] Optimus Performance. Available at: https://www.optimusperformance.ca/training-and-development-is-crucial-for-good-employee-performance/ [Accessed 12 Jan. 2020].

Nishtha Langer and Amit Mehra (2010), “How Training Jump-Starts Employee Performance”, Indian Management, Vol 49 (6), pp: 14-18.

Annual Report 2017, Seylan Bank PLC.

Comments


  1. The banks are growing rapidly with the latest technologies, systems and processes hence training and development is an essential factor in the banking industry. Aryee (2009) has mentioned that in the banking industry, the skills and knowledge of its employees are an important asset, which improves productivity and performance. This is because the banks are involved in the service sector and bank employees are responsible for its services and represent the quality and value of the bank to its customers (Athar & Shah, 2015).

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    1. From Udeni

      Thank you for your comment. Training guidelines are really essential in uplifting empowerment of employees in this service sector which can be done with employee motivation with recognition to them. Effective training and development will enhance the bank’s productivity and customer satisfaction which directly effect to the bank existence and it will be a good path to the best bank concept.
      “Distance training With a view to enhancing productivity and minimizing disruption to customer service we made a conscious effort to promote Distance training throughout 2017. Online learning, E-learning, Regional training and Branch/Department level training were further strengthened during 2017. Towards this end, 12 new “e-certification” courses were also rolled out through the e-learning platform, covering Branch Operations, Compliance, Credit Operations, Leadership Development, Customer Relationship Management, and Working Capital Financing (Annual Report, Sampath Bank, 2017, p71).

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  2. Dear Udeni , t is very necessary for the organization to design the training very carefully (Michael Armstrong, 2000). The design of the training should be according to the needs of the employees (Ginsberg, 1997). Those organizations which develop a good training design according to the need of the employees as well as to the organization always get good results (Partlow, 1996; Tihanyi et al.,
    2000; Boudreau et al.,2001). It seems that Training design plays a very vital role in the employee as well as organizational performance. a bad training design is nothing but the loss of time and money (Tsaur and Lin, 2004).

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    1. From Udeni

      Hi Ajantha, good results will be directly linked with the capacity of involvement. So the organization need to be facilitated the capacity of involvement for each and every individuals by providing infrastructure for developing their personal skills. Therefore, still need the identification of skill gaps. In my banking sector it shall be little difficult in the area of poorly utilized. So need to be increased utilization of that relevant areas.
      According to the many of research, output of worker emphasized the fact that employees who are satisfied with their job will have higher job performance, and job retention, than those who are not happy with their jobs (Landy, 1985). Training is the most important factor in the business world because training growths the productivity and the effectiveness of both employees and the organization. The employee performance depends on several factors. But the most important factor of employee performance is training (Ghafoor, 2011).

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  3. Hi Udeni, interesting Blog and I was attracted more on the training methods. Let me add something about it. As per Somasundaram & Egan (2004) area of focus of any training & development method can be summarized in to one of the followings,
    • Develop or gain knowledge
    • Develop or gain skills
    • Improve performance
    • Improve organizational efficiency.

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    1. Yes Suresh, its more effective in improve organizational efficiency. So in my banking sector we have develop computerized systems to reduce lead time. Example, in imports department. We have being the only one bank which have being gain the advantage of processing LCs after the government notification of new Import regulations for Vehicles. So the staff training for fast delivery was much benefitted in such a type of emergency situations. So bank able to managed without any customer dissatisfaction. So we have able to acquire maximum outcome profit in Imports department in an emergency situations.
      With the help of the trainings, there is applicable improvement take place in the performance of their particular employees. In training programs trainer effectively attention over the significant key points which are effectively lacking by the employees. By studying and effectively following key features emphasized by the trainer effectively benefits in improving the performance of the employees (Boselie, 2014).

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  4. Dear Udeni,
    Perfect blog which displays the importance of Training and Development by linking with a commercial banking industry .Training offers a perfect opportunity to expand the knowledge base of all workers, training and development provides benefits for both individuals and organizations as a whole that make the cost and time a worthwhile investment and helps to provide an incentive and wide framework to improve the technological and interpersonal capabilities of human resources in an organization.

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  5. Thank you Maheshika for your comments. Training connect the gap on staff present competence and present work requirements while aimed at developing the behavior and performance of an individual and it is a continuous practice in the company (Bhartiya, 2015). Bhat (2013) commented that training is positively related to work performance of staff and in turn company performance is expressively controlled by training imparted to the staffs hence training is an essential surface of performance in an company.
    “During the year, the bank conducted 13 financial literacy and entrepreneurial skill development programmes for Micro, small and medium enterprises (MSMEs), bringing the total number of programmes to 77 and assisting 7,952 MSMEs island wide, within a six year period. In addition to financial literacy workshops and soft skills training programmes the bank held networking events aimed and helping this segment make useful business connections” (Commercial Bank of Ceylon annual report 2018, p54).

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