THE EFFECTIVENESS OF TRAINING AND DEVELOPMENT IN BANKING SECTOR

WITH REFERENCE TO JANATA BANK NEPAL LTD

Arbind Shrestha
Birgunj Public College
Email: arbindshr@gmail.com
ABSTRACT
The aim of this study is to examine the effectiveness of training and how employees perceive training in the banking
sector. Questionnaires are distributed to respondents. The study is carried out with employees of Janta Bank Nepal Ltd.
Training means the planned and organized activity to impart skills, techniques and methodologies to employees. It is a
part of HRD, along with other HR activities, such as recruitment, selection and compensation. Therefore, effective and
efficient training program will improve the productivity of an employee. As training is an important part Human
Resource Development process of an organization, Banks are non-exception to it. In Nepal, the banking industry is
becoming more competitive than ever, private and public sector banks are competing with each other to perform well.
Since globalization, enormous amount of changes have taken place in banking industry in terms of its product and
services. More innovative activity has gone into the process of HRD, necessitating the need for employee training to
adapt to the changing banking present context which we find as of today.
(KEYWORDS: Training, Development, Efficient, Effectiveness, Productivity)

BACKGROUND
The survival of any organization in the competitive society lies in its ability to train its human resource to be creative,
innovative, inventive who will invariably enhance performance and increase competitive advantage. Training and
development is an aspect of human resource practices that helps in enhancing employees’ skills, knowledge, and
competence capable of improving employees’ ability to perform more efficiently. Training and development play a vital
role in the effectiveness of an organization. It is one of the most pervasive techniques for improving employees’
performance enhancing organization productivity in the work place. Employees are indispensable asset and key element
of gaining competitive advantage of any organization and training is essential tool for its actualization. The level of
competency, skills and ability of the workforces of an organization influences its ability of the workforces of an
organization influences its ability to preserve its obtained positions gain competitive advantage. Meanwhile, employees
competence, skill and pro-activeness is directly proportional to the level at which organization can compete with others.
Organizations are confronting with increased competition resulting from changes in technology, economic environments,
globalization etc. As it could be inferred from above that not much research has been conducted on the relationship
between all of these constructs. In this regard, this study aimed to contribute to the existing knowledge particularly in the
sphere of capacity development. It is to this end that this paper seeks to critically examine the effectiveness of training
and development on employees’ performance and organization competitiveness [ CITATION Tra \l 1033 ].

REVIEW OF LITERATURE
Training and development are indispensable strategic tools for effective individual and organization performance, thus,
organization are spending money on it with confidence that it will earn them a competitive advantage in the world of
business. However, for any organization to achieve its stated goals and objective in this competitive world, adequate and
relevance training and development of staff cannot be over emphasized. Organization are expected to identify training
need of its employees and design training programmes that will help to optimally utilize their workforce towards
actualization of organization objective. Training and development is a technique use to transfer to the employees’
performance on current jobs and future assignment. It is not negotiable for organizations to adequately train their
employees for efficient and optimal performance on current jobs and future assignment. It is not negotiable for
organization to adequately train their employees for efficient and optimal performance toward the realization of their set
goals and objectives. Employees training and development is a strategic determination to facilitate learning of the job
related knowledge, skills, ability and behavior that are crucial for efficient performance capable of enhancing
organizational effectiveness.
Training: The aim of any training programme is to provide instruction and experience to new employees to help them
reach the required level of performance in their jobs quickly and economically. For the existing staff, training will help
develop capabilities to improve their performance in their present jobs, to learn new technologies or procedure, and to
prepare them to take on increased and higher responsibilities in the future.
Development: Employee Development Programs are designed to meet specific objectives, which contribute to both
employee and organizational effectiveness. There are several steps in the process of management development. These
includes reviewing organizational objectives, evaluating the organizations current management resources, determining
individual needs, designing and implementing development programs and evaluating the effectiveness of these programs
and measuring the impact of training on participants quality of work life.
According to the Michel Armstrong, “Training is systematic development of the knowledge, skills and attitude required
by an individual to perform adequately a given task or job”.
According to the Edwin B Flippo, “Training is the act of increasing knowledge and skills of an employee for doing a
particular job”.
Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor at the MIT Sloan
School of Management in the 1960s that have been used in human resources management, organizational behavior,
organizational communication and organizational development. They describe two contrasting models of workforce
motivation.
Theory X
In this theory, which has been proven counter-effective in most modern practice, management assumes employees are
inherently lazy and will avoid work if they can and that inherently dislike work. As a result of this, management believes
that workers need to be closely supervised and comprehensive systems of control developed. A hierarchical structure is
needed with narrow span of control at each and every level. According to this theory, employees will show little ambition
without an enticing incentive program and will avoid responsibility whenever they can.
According to Michael J.Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and
coercion to gain their employees compliance.
Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The theory X manager
tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out
for themselves. Usually these managers feel the sole purpose of the employee’s interest in the job is money. They will
blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training
that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they
would rather avoid responsibility and that it is the manager’s job to structure the work and energize the employee. One
major flaw of this management style is it is much more likely to cause diseconomies of scale in large businesses.
Theory Y
In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is
believed that employees enjoy their mental and physical work duties. According to papa, to them work is as natural as
play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given
the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to
exercise self-control and self-direction in accomplishing objectives to which they are committed.
A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe
that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of
beliefs about workers. A close reading of the Human Side of Enterprise reveals that McGregor simply argues for
managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y
managers are more likely than Theory X managers to develop the climate of trust with employees that are required for
human resource development.
It’s human resource development that is crucial aspect of any organization. This would include managers communicating
openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable
environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision
making so that subordinates have say in decisions that influence them.
Theory X and Theory Y combined
For McGregor, Theory X and Y are not different ends of the same continuum. Rather they are two different continua in
themselves.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in
studying his research problem along with the logic behind them.
This study focuses on the effectiveness of training and development process in Janata Bank Ltd. Training is the process
of increasing the knowledge and skills of the employee. A better knowledge about these things can facilitate the trainer as
well as the trainee in conducting and benefiting from the training. But training being a very complex process make it bit
difficult. So the best way to achieve it is by studying and analyzing the feedback of employees as well as managers. The
project includes collecting information from staffs of Janata Bank, analyzing it, interpreting it, and making observation
and providing useful suggestion from it.
This study helps to know the impact of training process on employees in the organization. And also it enables to know
the attitude of employees towards training, satisfaction of employees, efficiency of training programs and trainers, and
impact of training on the productivity of organization.
This study provides the management with information regarding the effectiveness of their training process and the
satisfaction level of their employees with which they can understand the areas of strength and weakness of their training
program and their by take necessary managerial decisions.
The study mainly deals with the efficiency of training process which has to be increased. The objective, relevancy of
training, methods, materials, environment and time duration of training, personal satisfaction of employees all affect the
effectiveness of training. The study tries to cover as many as areas as possible in order to come with the best and accurate
conclusions. The feedback of the participants and trainers of training process have contributed a lot to achieve this.
Sources of Data
Data refers to information of facts however it also includes descriptive facts, non-numerical information, qualitative and
quantitative information.
Primary Data: Sources of information

 Questionnaire or schedule
 Observation
 Feedback form
 Interview
 Projective techniques
 Content analysis
Secondary Data: Sources of information

 Book
 Periodicals or journals
 Research thesis and dissertations
 Footnotes
 Encyclopedia
 Statistical data sources
 Websites/blogs

Tools Used for Data Collection

Data collection tools are instruments used to collect information for performance assessments, self-evaluations, and
external evaluations find during research. The researcher has used the method of interview to collect the information in
that organization and other techniques like observation to collect primary data.

Questionnaire

The questionnaires are provided with options and all of them were given with check box such that the employees can
easily record their response.

Observation technique

It is well known that observation is a method of collecting data with sensible organs in understanding less explained or
explained phenomena. In this method researcher observes some of the data like utilization of resources, level of
performance of workers, idle time given for workers, training frequency, etc.

Research design

A research design is the assignment of conditions and analysis of data in a manner that aims to combine relevance to the
search purpose formidable problem that follow the fact defining the research is the preparation in this study the
researcher has made use of the descriptive research design this is used to determine some definitive purpose with the help
of structured questionnaire to further primary information to focus on the accurate description of the variable present in
the problem.

Sampling

Sampling is concerned with the selection of a subset of individuals from within population to estimate characteristics of
the whole population. Researchers rarely survey the entire population because the cost of a census is high. The three
main advantages of sampling are that the cost is lower, data collection is faster, and since the data set is smaller it is
possible to ensure homogeneity and to improve the accuracy and quality of the data. In the study researcher has used
probability sampling.

Sample size

The total number of population (employees) is 100. It would be time consuming as well as difficult to interview all 100
employees. So the researchers have selected 40% of population for sampling. The samples were selected using simple
random sampling techniques i.e every individual in the total population had equal chances of being selected.

Selection of Sample Respondents

Simple random sampling

A simple random sample is a subset of individuals (a sample) chosen from a larger set (a population). Each individual is
chosen randomly and entirely by chance, such that each individual has the same probability of being chosen at any stage
during the sampling process, and each subset of k individuals has the same probability of being chosen for the sample as
any other subset of k individuals. This process and technique is known as simple random sampling.

In our study the total population (employees who participated in training) is 100. Every employee of the population had
equal chances of being selected among which 40(40%) employees were chosen to conduct the study.
Tool for Data Collection

A pilot testing was conducted initially by administering the questionnaire on around 40 numbers of respondents. The
information was collected from the bank employees at all the levels. Interviews were conducted with the employees for
gathering information on their perception about training.

Hypothesis of the study

A hypothesis is a proposed explanation for a phenomenon. The term derives from the Greek word hypothetical,
hypothetical meaning “to put under” or “to suppose”. For a hypothesis to be put forward as a scientific method requires
that one can test it. Scientists generally base scientific hypotheses on previous observations that cannot satisfactorily be
explained with the available scientific theories. Even though the words “hypothesis” and “theory” are often used
synonymously, a scientific hypothesis is not the same as scientific theory. A working hypothesis is a provisionally
accepted hypothesis proposed for further research. The proposed hypothesis for the study is

 There is a significant increase in the effectiveness after the training program.

 The satisfaction levels of employees are improved after training program.

Research Instrument-Questionnaire Method

The instrument will be administered in the workplace of each group. Data will be collected from the employees. Data
will be collected using a structured questionnaire, which will be distributed in the workplace in Janata Bank.

OBSERVATION AND ANALYSIS

Analysis and interpretation is the one of the important stage of a project. In this stage the recorded responses are coded
into symbols, for making counting, edited, tabulated and represented in appropriate pictorial form.

The responses in the questionnaire have its own value in making a true interpretation. There are 40 respondents for the
study. The questions are created in a way that the ambiguity is avoided. After preliminary scrutiny of the filled questions
which will lead the study.

TABULATION OF RESPONDENTS OF EMPLOYEES

Table 1: Training program effectively contributed to improve ability in performing the job.

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 20 50
Agree 11 27.5
Neutral 07 17.5
Disagree 02 5
Strongly Disagree 00 0
Total 40 100
Source: Survey information

Interpretation: It can be understood from the above table that, majority of 50% of the employees strongly agreed that
training program effectively contributed to improve ability in performing the job, 27.50% of the employees have agreed,
5% of the employees disagreed and 17.5% of the employees are neutral.

Table 2: Training programmes were relevant and useful

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 12 30
Agree 20 50
Neutral 08 20
Disagree 00 0
Strongly Disagree 00 0
Total 40 100
Source: Survey information
Interpretation: It can be understood from the above table that, majority of 50% of the employees agrees that they learnt
the methods and procedures of performing job, 30% of the employees have strongly agreed and 20% of the employees
are neutral.

Table 3: Training program helped trainee to perform the job with ease

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 14 35
Agree 22 55
Neutral 04 10
Disagree 00 0
Strongly Disagree 00 0
Total 40 100
Source: Survey information

Interpretation: It can be understood from the above table that, majority of 55% of the employees agreed that training
program helped them to perform the job with, 35% of the employees have strongly agreed and 10% of the employees are
neutral.

Table 4: Training program improved trainee’s commitment towards job

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 24 60
Agree 08 20
Neutral 05 12.5
Disagree 03 7.5
Strongly Disagree 00 0
Total 40 100
Source: Survey information

Interpretation: It can be understood from the above table that, majority of 60% of the employees strongly agreed that
training program improved their commitment towards job, 20% of the employees have agreed, 7.5% of the employees
disagreed and 12.5% of the employees are neutral.

Table 5: Training program helped to acquire better job satisfaction

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 16 40
Agree 20 50
Neutral 03 7.5
Disagree 01 2.5
Strongly Disagree 00 0
Total 40 100
Source: Survey information

Interpretation: It can be understood from the above table that, majority of 50% of the employees agreed that training
program helped them to acquire better job satisfaction, 40% of the employees have strongly agreed, 2.5% of the
employees disagreed and 7.5% of the employees are neutral.

Table 6: Training program contributed to improve interpersonal skills

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 12 30
Agree 26 65
Neutral 02 5
Disagree 00 0
Strongly Disagree 00 0
Total 40 100
Source: Survey information
Interpretation: It can be understood from the above table that, majority of 65% of the employees agreed that training
program contributed to improve interpersonal skills, 30% of the employees have strongly agreed and 5% of the
employees are neutral.

Table 7: Training program improves the ability to take quick decisions

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 08 20
Agree 16 40
Neutral 07 17.5
Disagree 05 12.5
Strongly Disagree 04 10
Total 40 100
Source: Survey information

Interpretation: It can be understood from the above table that, majority of 40% of the employees agreed that training
program improves the ability to take quick decisions,20% of the employees have strongly agreed, 12.5% of the
employees strongly disagreed.

Table 8: Training program helped to reduce the difficulties in job

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 28 70
Agree 10 25
Neutral 02 5
Disagree 00 0
Strongly Disagree 00 0
Total 40 100
Source: Survey Information

Interpretation: It can be understood from the above table that, majority of 70% of the employees strongly agreed that
training program improves the ability to take quick decisions, 25% of the employees have agreed, 5% of the employees
are neutral.

Table 9: Content of training program is valuable

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 32 80
Agree 08 20
Neutral 00 0
Disagree 00 0
Strongly Disagree 00 0
Total 40 100
Source: Survey information

Interpretation: It can be understood form the above table that, majority of 805 of the employees strongly agreed that
training program content is valuable and 20% of the employees have agreed.

Table 10: Trainees learnt the technological changes effected in job

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 20 50
Agree 15 37.5
Neutral 05 12.5
Disagree 00 0
Strongly Disagree 00 0
Total 40 100
Source: Survey information
Interpretation: It can be understood from the above table that, majority of 50% of the employees strongly agreed that
they learnt the technological changes effected in job, 37.5% of the employees have agreed and 12.5% of the employees
are neutral.

Table 11: Communication skills improved after the training program

Opinion No. of Respondents Percentage of Respondents

Strongly Agree 14 35
Agree 10 25
Neutral 10 25
Disagree 06 15
Strongly Disagree 00 0
Total 40 100
Source: Survey information

Interpretation: It can be understood form the above table that, majority of 35% of the employees strongly agreed that
communication skill improved after training program, 25% of the employees have agreed, 15% of the employees
disagreed and 25% of the employees are neutral.
CONCLUSION

The main purpose of conducting research for this thesis was to reveal the real fact regarding the effectiveness of training
and development of employees in Janata Bank. This study mainly focuses on the effectiveness of training on employees
in improving the present system. Employees of Janata Bank were interviewed and asked to express their feedback on
training and development programmes conducted by the organization. The questionnaire was distributed among the
employees via e-mail for the data collection. It was found that training and development programs conducted by Janata
Bank are to be found effective. Majority of employees said that they were satisfied and their skills were improving for
work. Few said there are still few improvements to be made to make the program more effective. The training provided
by the bank is not quite useful in regards to developing interpersonal skills of employees. The soft skills regarding
communication skill with the employees as well as with the customers are less effective. Employees also believe that
their decision making ability has increased and they are able to take quick decision and can had developed the confidence
to take risks. Employees have also learned the methods and procedures of banking and are now more committed to their
work.
The training and development conducted by Janata Bank for their employees have boosted their confidence and
decreased the difficulty while performing their job. The programme was found to be valuable to employees but some
employees said that the contents can be much more improved and can be made much more effective for employees.
Training is an investment rather than a cost to the organization. The utilization of all other resources directly depends on
efficient utilization of human resources. Every organization needs to have well-trained and experienced people to
perform the activities that have to be done. As jobs have become more complex in the banking sector, the importance of
employee training has increased. A key for obtaining consistent success with training programs is to have a systematic
approach to measurement and evaluation. Recognition of the training methods and measurement techniques are crucial
for the organizations training success. Janata bank has a good organization culture, excellent working environment and a
very precious Asset (i.e human capital) that is highly dedicated and hardworking; well qualified knowledge workforce.
Janata Bank has offered training to its employees of all departments. Since majority of the employees are adaptable to
changes and strive for self-development. From the analysis of the data it can be concluded that the training programmes
offered in Janata Bank are effective.
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Bank and Financial Institutions Act, 2063. (n.D). Retrieved from http://mos.gov.np/en/banks-and-financial-institutions-
act-2063-2006/

Edwin B. Flippo. (2014), Principles of Personnel Management, Mc Graw Hill Publication

Janta Bank. (2017). Retrived from Janta bank: http://www.jantabank.com.np/content/right-share-allotment.html

McGregor D. (1960). The Human Side of Entreprise, New York, McGrawHill.

Merolagani. (2017). Retrived from http://merolaganicom/NewsDetail.aspx?newsID=34400

New article on acquisition. Merolagani.com.

Personnel Management Act, 2061 (n.d.). Retrived from Training and Development: https://ro.vlex.com/vid/effectiveness-
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