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The Impact of Training on Banks Employee Performance

Article in Hungarian Agricultural Engineering · May 2021

DOI: 10.17676/HAE.2021.39.22

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Mohannad Abu Daqar Milán Constantinovits

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 PERIODICAL OF THE COMITTEE OF
HUNGARIAN AGRICULTURAL ENGINEERING
AGRICULTURAL AND BIOSYSTEM
N° 39/2021 22-28 ENGINEERING OF
Published online: http://hae-journals.org/ THE HUNGARIAN ACADEMY OF SCIENCES
and
HU ISSN 0864-7410 (Print) / HU ISSN 2415-9751(Online)
HUNGARIAN UNIVERSITY OF
DOI: 10.17676/HAE.2021.39.22 AGRICULTURE AND LIFE SCIENCES
Received: 04.02.2021 - Accepted: 20.04.2021 Institute of Technology

THE IMPACT OF TRAINING ON BANKS EMPLOYEE PERFORMANCE

Author(s):
M. Abu Daqar, M. Constantinovits
Affiliation:
The Hungarian University of Agricultural and Life Sciences (MATE), 2100 Gödöllő, Páter Károly u. 1. Hungary
Email address:
[email protected]; [email protected]

Abstract: The main aim of conducting this research work is to explore the impact of Training on Employees
Performance in the banking industry in Palestine. The Data for this study were collected from the permanent
staff working in banks in Palestine through a questionnaire designed to achieve the objectives of this study
as the main instrument to gather the primary data; 10 banks have been selected for this purpose. The result
shows that there is a significant relationship between Training Material and Employee Performance, and also
a significant relationship between Training Delivery and Employee Performance, while the study revealed
that there is no significant relationship between (Training Design and Training Content) and Employee
Performance. The researcher recommended banks to focus on giving useful and easy to read and see the
material, handouts, and activities in training. Moreover, Banks should consider focusing on training that best
helps employees in applying and learning various types of knowledge and skills, providing clear instructions
for all activates, and providing trainings with reasonable time duration.

Keywords: instructor-led training, virtual instructor-led training, e-learning, blended learning

1. Introduction

Nowadays, we see that every organization has a critical issue to deal with which is the best way to manage
its human resources. It is a must for organizations to increase the employee’s productivity and efficiency
level to maximize their wok outputs (Ayman, 2016). The crucial issue with any organization is to maintain
its survival among the massive competitiveness in the market; which it comes from its ability to train the
human power to be more, inventive, innovative and creative; these features will enable the organization to
enhance its performance which leads to raising its competitive advantage among other rivals. (Lawan, 2018).
Furthermore, human resources considered a main strategic resource to create a sustainable and competitive
advantage (Sekantsi, 2018).
So, organizations encouraged to focus on training their employees because it is one of the most important
ways to equip them to be aligned to work incentives and enhancing their work performance to a higher level
(Bhat, 2017). Organizations need to know that the common evidence about knowledge growth in the business
world can't be ignored, they need to reserve a place at this fast pace. It is important to know that this growth
didn't bring by either production factors or technology while it evolved through the development of human
resources in the organization (Engetou, 2017). Moreover, it is a must that organizations need to enhance the
career performance for its employees by implementing specific, specialized, adequate and well-organized
training programs; these movements considered the most important step that organizations need to achieve.
This study investigated different factors that influence employee’s performance; but training still the main
pillar that is significantly predicting employees' performance, it enhances their capabilities, capacities,
competencies and their recognition for their works and duties (Kenny, 2019).
Training defined as an organization's efforts has been initiated to boost the learning level among employees,
and the other side which is the development, it defines as an effort that focuses on broadening and improving
the employee’s skills for upcoming responsibility (Afroz, 2018). Training considered the main reason behind
employees’ development and growth in work, and it is responsible in creating positive work attitudes and
better behavior in the work atmosphere, and we should not forget that training is not a prestigious tool used
to improve the corporate image; on the contrary, it is highly associated with work efficiency and effectiveness

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which leads to higher work productivity (Kumar, 2016). The main objective of the training is to boost the
individuals and the organization's performance; that's why organizations need to concentrate their efforts on,
sometimes their employees left behind the job goals and objective because they are not well-equipped to
handle these objectives and achieve it. Zafar (2017) expressed that training is a systematic method depends
on analyzing work progress; assigning the work goals and milestones, in other words, what owed to be done
to achieve higher performance that meets the expected organization performance level.
The significance of this study is to discover the associated relationship between employees training and
work performance; it is most demanded issue by organizations managers because current trends in business
require higher work efficiency, more accuracy and effective work processes and procedures which are
associated with time and cost reduction in different work roles and processes; it is the only method to achieve
these goals through designing, developing and deploying the best in class training programs and to deliver
it to the involved employees (Salah, 2018). The employees became more interested in their work when the
organization introduce various training programs; they will have the passion to raise their knowledge about
their work tasks; it will help them to gain more work incentives and promotions; on the other side, training
has a significant impact on employee’s commitment and their performance (Bhat, 2017).

2. Literature Review

Training
Authors and human resource management experts have different and various definitions of training in
Literature. According to Donkor & Banki (2017) training as a concept leads to human development and
human resources is the key pillar for all organizations. For Ibrahim et al., (2017) training is the key tool that
helps the organization in achieving the highest work performance.
Singh (2017) found that training is crucial and key tool to enhance the human power performance and it
will increase the organization overall worth; but the most important hint must be taken in consideration that
the organization must balance between training value and the expenses, the findings from this study show
that the training impact is varied according to different industries.
Effective training plays a significant role in an organization through creating the required and the most
competitive competencies required for the employees and the organization at all to accomplish and being
pioneers in their work tasks, moreover; it has a significant impact on the organization structure (Scettri,
2019). Kumar, Anitha (2016) stresses that Training is a development tool combined from skills, attitudes,
and knowledge of employees to perform their work in the right manner.

Training Factors

Training Delivery classified through five different categories such as, instructor-led training (ILT), virtual
instructor-led training (VILT), E-learning, mobile learning, and blended learning which is a mix of these
types of training based on the organization training objectives (Gautam, 2019). Training Design factors are
course lifetime, needs, participants, intangibles, evaluation, resources, learning objective, and content (MIT,
2019a). Furthermore, Training Content concerned about the training topic itself; if its relevant, timely, and
up-to-date content, how long this content will be relevant (MIT,2019b). Training Materials defined as
recorded or printed information used in training such as; training activities, warm-up activities, flashcard,
games, paper clips, etc. (Briscoe, 2019).

Important of training

According to Duron et al. (2018), Recently organization heavily invested in training which leads to a
competition among these organization about the best practice in training that influence their success and
increased their performance in the market, while Daudt, Archangelo & Duquette ( 2017) investigated that
training must be a continuous process because of the rapid technological enhancement in the organizations
systems which is the success edge for them. Rutledge & Cathcart (2019) claimed that the training and
employee development is useful for both individuals and organizations at all; when the organization focuses
on employee training and development it will raise the organization's profitability either tangible or intangible
profit. Furthermore, training helps employees in their decision making process and solving the work problems

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HUNGARIAN AGRICULTURAL ENGINEERING THE IMPACT OF TRAINING ON BANKS EMPLOYEE
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PERFORMANCE

in an effective views, and also it helps them in achieving higher self-confidence and development, it also
helps in decreasing the work stress, tension, managing conflicts, and in the conclusion increasing their
satisfaction in their jobs and being more loyal (Motlokoa, 2018).
(Afroz, 2018), (Bhat, 2017) revealed that training is one of the most effective tools and a fundamental one
to achieve the organizational objectives and goals and it will help in achieving the aimed performance and
higher work productivity.

Employee performance

Anitha & Kumar (2016) said that the key part of any organization is Employees; the management should
invest in this human power as they are the reason behind its success, while Safitri & Lathifah (2019) defined
employee performance as achieving and accomplishing specific and well-determined tasks in the
organization this happened through their efforts in doing their tasks, all of these tasks will be measured
according to well-planned and predefined goals, objectives, measures and KPI’s. For Francis & Angundaru
(2017) Performance combines from results and behavior, they clarify that Behavior originated from
employee performance; and it is a must to transform their performance into action without keeping it as a
plan.

Impact of training on employee performance

According to Brittany et al., (2017); training took this importance in human resources management because
of its significant positive relationship with employee performance, however, training considered as a
fundamental tool in the organizational capacity building to improve its performance and achieving its goals
(Sasidaran, 2018).
Kumar (2016) concluded that organizations that pay more attention in training and developing their
employees in planned way, it will enable the organization top managers in gaining the confidence from their
subordinates, while Afroz (2018) explored that training and employees development is the organization
strategic instrument to improve their performance through acquiring and equipping employees with the
cutting-edge skills and knowledge along with the right organization attitude by the best practice to do their
tasks within the planned goals and objectives, According to Motlokoa (2018) organizations must take an
initiation in enhancing employees skills and knowledge through planned trainings to achieve the planned
performance expected from their work performance, the most interested results from this study is training
has strong impact on employees performance along with it is highly associated with their satisfaction in work
and enhance their motivations.

3. Materials and Methods

Data collection and reliability test

The authors used primary and secondary data resources, the primary resource through a well-structured
questionnaire which consists of three parts, the demographic dimension, employee performance (Dependent
Variable) and training (Independent Variable) while the secondary data resources are previous literature,
journal articles, websites, and books. The authors used Cronbach's alpha equation test to check the instrument
reliability; the calculation revealed that Cronbach's alpha is greater than 0.70 which is accepted.

Population and Sampling Method

In this research work that the authors chose the banking industry in Palestine, a simple random sampling
technique used for this purpose, around 290 employees participated in this work.

The Study Model

The authors in this research work aim to explore the impact of training on employee's performance, so he
adopts the following conceptual structure based on the previous literature that constructs the following model.

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Table 1. Study Variables

Variable Type Sub-Dimensions

Training Independent Training Design
Training Content
Training Delivery
Training Material
Employee Performance Dependent ----
Source: Researchers

4. Results

Study Hypothesis # 1

H0-1: There is no significant relationship between Training factors and Employee Performance in the
banking industry in Palestine.

Table 2. Correlations Coefficients (R) between Training Factors and Employee Performance

Employees Training Training Training Training

performance design content delivery material
Employees
1.000 .603** .595** .634** .756**
performance
Training design .603** 1.000 .578** .665** .630**
Training content .595** .578** 1.000 .530** .617**
Training delivery .634** .665** .530** 1.000 .612**
Training material .756** .630** .617** .612** 1.000
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Own

The above table indicates the Pearson Correlation Coefficient between the study variables (Employee
Performance) as the dependent variable, and (Training factors) as the independent variable, the results show
that there is strong positive relationship between employee performance and all the training factors, the
highest relationship exists between employee performance and training material where (R=.756, p<0.01),
and the second factor that have the highest impact on employee performance which is the Training Delivery.

Hypothesis # 1 Discussion

The authors concluded that the most important factors affecting the efficiency and the effectiveness of
training in an organization which is the training delivery and training material. Training delivery associated
with how trainees engaged in training and understand the training materials such as; in-person or virtual
training, interactive learning guides, video simulation, group participation, hands-on activities, role-plays and
mentor shadowing; while training materials such as questionnaires, discussion questions, exercises, pre-tests,
and activities, etc.

Study Hypothesis # 2

H0-2: There is no significant influence of Training factors on Employee Performance in the banking industry
in Palestine

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HUNGARIAN AGRICULTURAL ENGINEERING THE IMPACT OF TRAINING ON BANKS EMPLOYEE
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Table 3. ANOVA and R-square for Employee Performance Econometric Model

Sum of Mean R Adjusted R

Model df F Sig. R
Squares Square Square Square
Regression 12.288 1 12.288 62.589 .000b
Residual 9.227 289 .196 .756a .571 .562
Total 21.515 290
a. Dependent Variable: Employee Performance
b. Predictors: (Constant), Training Design, Training Content, Training Delivery,
Training Materials.
Source: Researchers

The above table shows that there is an existed relationship between the study variables; the independent
variable (Training Factors) contributes in predicting employee performance, R²= 0.571 which mean that
training factors explain 57.1% of the variation in employee performance, while R=.756 which indicates that
there is a significant strong relationship between the independent and the dependent variables.

Table 4. OLS Summary

Unstandardized Standardized
Model Coefficients Coefficients t Sig.

B Std. Error Beta

(Constant) 1.303 .312 4.178 .000
Training Material .477 .094 .588 5.105 .000
Training .208
.087 .274 2.383 .000
Delivery
Source: Researchers

Multiple regression analysis used to test if training factors significantly predict employee performance, the
results as revealed from table 4 indicates that the two variables (Training Material & Training Delivery)
explained 57.1% of the dependent variable variance (Employee Performance), the below equation shows the
econometric equation in this study.

Employee Performance= 1.303 + 0 .477 Training Material + 0.208 Training Delivery

Hypothesis # 2 Discussion
The above equation means that there is an existing and direct impact between Training Material and Training
Delivery with employee performance. These two factors have the most significant impact on predicting the
variance in Employee Performance, it means that organizations and companies should focus on these factors
to enhance the employee’s performance level and improving the organization overall performance.

5. Conclusion

The study shows that there is no significant relationship between training content and design with employee
performance; while it shows a clear significant and direct relationship between training material and delivery
with employee performance.
Training Delivery and Materials have the most influencing impact on employee’s performance. The authors
in this study investigated the main reasons that have the direct impact on Banking industry employee’s
performance from the employees’ point of view, it helps in revealing the critical success factors that enhance
and improve the employee performance in these sectors.

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6. Recommendations

The study recommends that employer should consider focusing on giving useful and easy to read/see
material, handouts and activities in training and also the employer should consider focusing on training that
best help employee in learn and apply various types of skills and knowledge, and provides clear instructions
for all activates, besides, trainings with reasonable time duration, delivering training in the best way that fit
employees capabilities and capacities to gain more competencies and understanding in achieving the training
goals and objective which lead to higher work performance in the organization.

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