PAIDEUMA JOURNAL Issn No : 0090-5674

Training and Development: Its Influence on

Employees Performance and Productivity –
A Case Study of Visakhapatnam Steel Plant
(RINL), Visakhapatnam.
ADARI TULASEE NAIDU
Department of Commerce and Management Studies
Andhra University, Visakhapatnam, Andhra Pradesh, India
[email protected]

Abstract- Modern business firm’s success or failure depends on the quality of its employees. Well-trained and highly
developed employees are the secret to this performance. The goal of the analysis was, therefore, to examine the
relationship between training and development in the Visakhapatnam steel plant (RINL) as well as employee efficiency
and productivity. This article is empirical in nature. Primary sources from questionnaire responses collected the data for
the report. Through statistical tools, the details have been reviewed to recognize the influence of training and
development on the output and profitability of employees. There have been two training and development (Independent)
and productivity and Profitability (Dependant) components of the study.

For the collecting of information, 80 questionnaires have been issued. To check the reliability and accuracy of the
questionnaire, descriptive statistical tools were employed with the help of the SPSS statistical package. The aim was to
determine how training and development has an impact on the efficiency and profitability of employees Information have
been collected and processed. The results showed that the variables had a strong connection, the Pearson correlation had
been used in the analysis, and Cronbach Alpha was collected for each questionnaire. Relevant literature articles on the
topic related to this work have also been reviewed.

Therefore, it was recommended that effective training programs and carefully set development plans should be provided
to all employees to enable them to enhance their skills and upgrade their knowledge.

Keywords – Employee Performance, Employee Productivity, Training, Development and Employees.

I. INTRODUCTION
In order to be competing and financially solvent, human capital needs to be given strong attention when
organizations try to survive on the turbulent dynamic markets. Other factors, however, affect the success of
organizations; they must have productive (i.e. efficient) employees. Furthermore, human capital-driven
organizations rapidly see these skills and employee motivations as being invaluable for the sake of being sustainable
on the market because of their intangible features. Organizations would also provide staff that will adapt to the
increasingly evolving operating environment.
The principal aim of every organization is to increase its efficiency, but without the efficient production of
employees it will never be done. As a Leadership Framework to address and correct challenges in organizational
performance, the performance leadership system was implemented (Sharif 2002). A broad variety of changes have
since been carried out in the financial sector, including an emphasis on success (Gleeson & Husbands 2001; Downs,
Chadbourne & Hogan, 2000). Success implies the accomplishment of anything or mere consistency of function. The
results of an organisation, the mechanism and person rates and the interrelationships between them determine the
points of view of the organization.
Training and development systems are introduced in order to contribute to the overall goal of the enterprise because
not only the organisation but also its people are benefited from these opportunities. Training and development boost

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productivity for the company thus fostering more optimistic profit-orientation behaviors. Training and development
enhance the awareness of the workers by helping to define the organization's goals. Training and development are
described as the expected experience of learning which enables workers to perform jobs in the present and future.
Improved performance of people involved in training and development programs is at the core of this program.
Training is thus accomplished by learning and development means that the people acquire, conclude and use it as an
organizational tool. As such, performance contributes particularly to the growth of the organization because it can
apply combined skills and expertise through formation and development. Furthermore, the researchers received
considerable attention from education and development and how it impacts employee performance in the business
environment.

Fig 1: Training and Development Self – developed model.

II. OBJECTIVES OF THE STUDY
The following are the objectives of the study
 Identifying employee perceptions about how training and development has worked to help them.
 identifying employee levels of expertise as enhanced by training and development.
 examining the contribution to individual performance and productivity from training and development.
III. REVIEW OF LITERATURE
Paradise (2007) reported in its study that US companies invest more than $126 billion per year alone on training and
development for their employees In an environment where there is high uncertainty, organizations with high risk tend
to have a reliable competitive benefit over those without this knowledge of business and market intelligence (Jelena,
2007).
Knowledge therefore turns to fundamental capital that triggers development. However, the effectiveness of
organisations relies on their professional and knowledgeable staff. Therefore, organizations must view ongoing
training and development of their staff as invaluable in order to maintain sustainability. Training and development at
all levels of employees is very important because the skills are eroded and obsolete and must be filled out over a
period of time (Nishtha and Amit (2010).
Training is coordinated to enhance the quality and development of new and established workers through
organisations. Trainings in Khawaja and Nadeem (2013) are seen as a systematic training and development approach,
improving individuals, groups and organisations (Goldstein & Ford, 2002). This leads to knowledge or skills
acquirement for growing purposes, by the series of activities undertaken by the organisation.
It relates to the well-being and success of human capital, culture and community as a whole. Training is an action to
improve the quality of the organization and services in the strong competition, according to Manju & Suresh (2011)
by improving employees ' technical skills.
Training refers to activities for the learning of fresh knowledge or skills. To order to enhance their capabilities,
companies involve workers with learning programmes. The creation of staff to the new operating climate (Sheri-lynne

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PAIDEUMA JOURNAL Issn No : 0090-5674

2007) of Abdul Hameed (2011) is an extremely important and strategic imperative. Companies also ought to invest in
on-going growth of employees, ensuring that workers and corporate performance are sustained (Khawaja & Nadeem
2013).
The quality with which items are generated is productivity as described in the Oxford dictionary (2007). The
efficiency of workers however is the economic calculation of production per input unit. Net sales for total workers are
reported (Rohan & Madhumita 2012). Thus, it is possible to determine employee productivity of the entire economy
or industry.
The development of the concept of organizational learning is, according to Easterby-Smith (1999), essential to
previously thinking that previous learning campaigns have a tendency to its commercial importance and lack
empirical information on learning processes.
Strategically, the acquisition of knowledge, know-how, techniques and practices is a part of organizational learning,
which uses formation and development as a response. Through people who acquire, infer and use such intellectual
intangibles for organisation-wide training and development (Armstrong 2006), they can be translated into an
organizational resource.
Education and development are structured learning experiences that teach people how to work more effectively both
now and in the future. Sims (2002) emphasizes that training is focused on current employment, while development
trains employees for potential future employment. Training and development strives ultimately to lead to the overall
objective of the enterprise.
Training programs should concentrate on professional growth, development and the creation of employment. This is
continuous training that encourages organisations, especially human capital, to continue to invest in and develop their
skills for members of the organization (Sims 2006).
The goal is to learn skills and knowledge from an employee's viewpoint, as well as to achieve progression and a
future. Training and development also contribute to the personal and professional development of employees in
facilitating career changes. The art of acquiring knowledge, skills, competencies, behaviours and ideas retained or
used; or a change in behavior by experiences (Maycunich 2000) could be defined as knowledge acquired by
autonomic study, experience, or both.
Senge (1990) believes that learning has little to do with taking in information; rather it is a process that enhances
capacity. Learning is about building the capacity to create that which one previously could not create. Senge (1990)
argues that training has little to do with information; it is a capacity building operation. Training means building the
ability to create what one was not able to create previously.
IV. RESEARCH METHODOLOGY AND DATA COLLECTION
In Sample size of the population means the total number of people drawn from the population. 125 questionnaires
were distributed among the employees in order to achieve the objectives of the research. 108 questionnaires have been
returned in response. The rate of response was 86%. The questionnaire was developed at 5-point Likert Scale (1=
Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly Agree). The data were analyzed via SPSS to
test the impact of the variables.
Data Collection:
The required information for the study was collected through questionnaire. The questionnaire used to allow the
response of the respondents in a standard way, unbiased approach and objective oriented. The use of questionnaire
provides the information to be presented in a numeric way. Questionnaire method also has several limitations, for
example lackadaisical attitude. The necessary information was collected via questionnaire for the study. Collection of
data. The questionnaire is used to allow a standard, unbiased and objective response by the respondents. The use of
the questionnaire provides numerical information. Questionnaire method also has a range of constraints, such as lack
of attention and lack of cooperation between respondents of respondents, non-attendance and lack of cooperation.
Variables used in the study:
Factor_1 Employees enhancement come through Training & Development

Factor_2 Performance and productivity increase due to the enhanced competency of the employees

Factor_3 Training and development teach the technique of performing a job to employees

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Factor_4 With training and development job knowledge increase in employees

Factor_5 Training and Development brings positive attitude in employees

Factor_6 High morale employees give better performance

Factor_7 Training and development reduce the stress of the employees

Factor_8 Training and development enhance the skills of job of employees

Factor_9 Skilled employees’ performance and productivity is more than the unskilled employees

Factor_10 Most of the employees consider training and development vital for job

Factor_11 Performance and productivity increase due to the ability of the employees

Factor_12 Training and development boost up the morale of the employees

Factor_13 Performance and productivity increase due to the technique of job

Factor_14 Training and development is essential for banks employees

Factor_15 T&D reduce consumption of time and cost and increase performance and productivity

Factor_16 Performance and productivity increase due to the positive attitude of employees

Factor_17 Competency level of employees increases due to T&D

Factor_18 T&D enhance the performance and productivity of the employees as well as of the organization

Factor_19 Most of the employers consider training and development waste of time and waste of money

Factor_20 Most of the employers give training to their employees

Data Analysis:
Descriptive Statistics
The first output from the factor analysis is a table of descriptive statistics for all the variables under investigation.
Typically, the mean, standard deviation and number of respondents (N) who participated in the survey are given.
Looking at the mean, one can conclude that Factor_4 (With training and development job knowledge increase in
employees) is the highest mean value of 4.29, while Factor_5 (Training and Development brings positive attitude in
employees) is the lowest mean value of 3.22. it indicates that majority employees have the common opinion on
Factor_4. The Factor_19 (Most of the employers consider training and development waste of time and waste of
money) has the lowest standard deviation value of 0.398 and Factor_3 (Training and development teach the technique
of performing a job to employees) has the highest SD value of 1.467.

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Descriptive Statistics
Variables Mean Std. Deviation Analysis N
Factor_1 3.96 .966 108
Factor_2 3.59 1.223 108
Factor_3 3.42 1.467 108
Factor_4 4.29 .832 108
Factor_5 3.22 1.122 108
Factor_6 3.45 1.195 108
Factor_7 3.59 1.042 108
Factor_8 3.85 .873 108
Factor_9 3.51 1.098 108
Factor_10 3.64 1.322 108
Factor_11 3.63 1.204 108
Factor_12 4.08 .725 108
Factor_13 3.68 1.066 108
Factor_14 3.40 1.160 108
Factor_15 3.84 1.025 108
Factor_16 3.91 .756 108
Factor_17 3.50 1.329 108
Factor_18 3.78 1.363 108
Factor_19 4.19 .398 108
Factor_20 3.48 1.156 108
Source: Collected and Analyzed in SPSS V24.
KMO and Bartlett's Test:
Kaiser-Meyer-Olkin (KMO) and Bartlett's Test: It measures strength of the relationship among variables. The KMO
measures the sampling adequacy which should be greater than 0.5 for a satisfactory to apply factor analysis. If any
pair of variables have a value less than this considers dropping one of them from the analysis. The off-diagonal
elements should all be very small (close to zero) in a good model. Looking at the table below, the KMO measure is
0.866. The general acceptance value to recommend factor analysis is 0.50 as minimum, values between 0.70 to 0.80
acceptable, and values above 0.9 are superb. Bartlett's test is another indication of the strength of the relationship
among variables. This tests the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is
matrix in which all of the diagonal elements are 1 and all off diagonal elements are 0. From the same table, Bartlett's
test of sphericity is significant That is, its associated probability is less than 0.05. In fact, it is actually 0.000, i.e. the
significance level is small enough to reject the null hypothesis. This means that correlation matrix is not an identity
matrix.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .866
Approx. Chi-Square 1910.577
Bartlett's Test of Sphericity df 190
Sig. .000

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Communalities:
The next item from the output is a table of communalities which shows how much of the variance in the variables has
been accounted for by the extracted factors. For instance, over 96.0% of the variance in Factor_6 while 70.9% of the
variance in Factor_3.
Communalities

Variables Initial Extraction

Factor_1 1.000 .884

Factor_2 1.000 .867
Factor_3 1.000 .709
Factor_4 1.000 .912
Factor_5 1.000 .871
Factor_6 1.000 .960
Factor_7 1.000 .871
Factor_8 1.000 .818
Factor_9 1.000 .748
Factor_10 1.000 .938
Factor_11 1.000 .848
Factor_12 1.000 .885
Factor_13 1.000 .741
Factor_14 1.000 .891
Factor_15 1.000 .885
Factor_16 1.000 .883
Factor_17 1.000 .935
Factor_18 1.000 .715
Factor_19 1.000 .892
Factor_20 1.000 .771

Extraction Method: Principal Component Analysis.

Eigenvalue:
The standardized variance associate with a particular factor. The sum of the eigenvalues cannot exceed the number of
items in the analysis, since each item contributes one to the sum of variances.

Total Variance Explained:

The next item shows all the factors extractable from the analysis along with their eigenvalues, the percent of variance
attributable to each factor, and the cumulative variance of the factor and the previous factors. From the output, there
are 8 factors were significant and remaining factors were less significant.

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Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % Cumulative % Total % Cumulative

%
of Variance of Variance

1 4.150 20.752 20.752 4.150 20.752 20.752

2 3.591 17.954 38.706 3.591 17.954 38.706

3 2.358 11.790 50.496 2.358 11.790 50.496

4 1.872 9.360 59.856 1.872 9.360 59.856

5 1.540 7.700 67.556 1.540 7.700 67.556

6 1.371 6.857 74.413 1.371 6.857 74.413

7 1.117 5.587 80.000 1.117 5.587 80.000

8 1.025 5.123 85.123 1.025 5.123 85.123

9 .771 3.854 88.977

10 .605 3.023 92.000

11 .514 2.572 94.572

12 .335 1.676 96.248

13 .230 1.148 97.396

14 .152 .761 98.157

15 .142 .708 98.865

16 .081 .403 99.267

17 .068 .338 99.606

18 .043 .214 99.820

19 .022 .109 99.929

20 .014 .071 100.000

Extraction Method: Principal Component Analysis.

Scree Plot:
The scree plot is a graph of the eigenvalues against all the factors. The graph is useful for determining how many
factors to retain. The point of interest is where the curve starts to flatten. It can be seen that the curve begins to flatten
after the factors 8. Hence, eight factors were retained in the study for further analysis.

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Component (Factor) Matrix:

The table below shows the loadings of the eleven variables on the four factors extracted. The higher the absolute
value of the loading, the more the factor contributes to the variable. The gap on the table represent loadings that are
less than 0.5, this makes analyzing the table easier. Here the researcher suppressed all loadings less than 0.5.
Component Matrixa
Component
1 2 3 4 5 6 7 8
Factor_10 .865
Factor_11 .738
Factor_5 .725
Factor_2 .691
Factor_3 .560
Factor_15 .765
Factor_16 .633
Factor_12 .573
Factor_9 .506
Factor_8 .495
Factor_6 .528
Factor_1 .583
Factor_7 .508
Factor_14 .619
Factor_4 .536
Factor_18 .347
Factor_17 .776
Factor_13 .561
Factor_20 .441
Factor_19 .624
Extraction Method: Principal Component Analysis.
a. 8 components extracted.

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Rotated Component (Factor) Matrix:

The idea of rotation is to reduce the number factors on which the variables under investigation have high loadings.
Rotation does not actually change anything but makes the interpretation of the analysis easier. Factors 11, 10, 9, 3
were loaded on Factor 1. Factors 6, 7, 16 were loaded on Factor_2, Factors 1, 15 and 12 loaded on Factor_3. Factors 2
and 5 were loaded on Factor_4. Factor 8, 4 and 14 were loaded on Factor_5. Factors 20 and 13 were loaded on
Factor_6. Factor_17 were loaded on Factor_7 and finally Factor 19 and 18 were loaded on Factor_8. These factors
can be used as variables for further analysis.
Rotated Component Matrixa
Component
1 2 3 4 5 6 7 8
Factor_11 0.861
Factor_10 0.797
Factor_9 0.656
Factor_3 0.539
Factor_6 0.941
Factor_7 0.894
Factor_16 0.571
Factor_1 0.896
Factor_15 0.782
Factor_12 0.627
Factor_2 0.846
Factor_5 0.845
Factor_8 0.834
Factor_4 0.681

Factor_14
0.524
Factor_20 0.737
Factor_13 0.661
Factor_17 0.907
Factor_19 0.852
Factor_18 0.501
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 32 iterations.

V. FINDINGS OF THE STUDY

1. The study shows that Training and Development programs and Employee performance are interlinked in the
select banking industry.
2. The analysis shows that Training and Development programs are strongly influencing the employee
performance in the select Banking Industry.

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3. It is found from the above study that Training program had certainly increased the performance levels of the
select bank employees.
4. Employees believes that training and development programs enhance job knowledge.
5. Employees has the lowest attitude on training and development
6. Majority of the employees opine that training and development programs are the waste of the time.
7. With the help of the training and development programs employees performs the job in a productive way.
VI. CONCLUSION OF THE STUDY
The research findings show a strong connection between training and development and the success of workers in the
company. In this sense, there is a strong correlation between teaching, growth and success of employees.
Organizations who invest in training and development programs in their workplace capabilities would certainly
benefit from the levels of productivity of their employees
It is very significant for organizations, in order to maximize employee performance, to improve staff skills
continuously. This is only possible through pursuing training and development. Unqualified employees are well
established to not be up to the mark and this will certainly influence the organization's overall performance. Since
training and development activities play an important role in employee performance and efficiency, managing the
environment which requires constant education, is crucial for companies. Training and development firms tend to
have a perfect corporate image.
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