Review of Literature

When evaluating the performance of employees, it is very important to have a check

list that will be used consistently. The technique for measuring the performance of
employees may differ from every company. The information thus far reveals a
seeming consensus in the belief that there is a positive relationship between training
and employee performance. Thus training impacts positively on employee’s
performance by generating benefits to both the employees and the organization they
work for through the development of skills, knowledge, abilities, competencies and
behavior (Evans, 1999). On the job training plays a significant role in the
development of organizations, enhancing performance as well as increasing
productivity, and ultimately putting companies in the best position to face competition
and stay at the top. This means that, there is a significant relationship between
organizations that train their employees and organizations that do not (Evans, 1999).
Every organization that is committed to generating profits for its owners (shareholders)
and providing quality service for its customers and beneficiaries must invest in the on
the job training for its employees. International Journal of Humanities and Social
Science Vol. 2 No. 22 [Special Issue – November 2012] 116 According to Robert
Simpson Managing director of Legna Construction Limited, a construction company
located in the central region of Ghana which contributes substantially to the
development of the country through its roads construction and employment of the
country’s human resource, training of the company’s human resource contributed to
the company gaining substantial increase in revenue from 2005 – 2009. (40% increase
from 2001 – 2004). He attributed this to the skills and knowledge the employees
gained through the training that helped them be more efficient thus reduced cost on
the job thereby gaining more revenue. Evans and Lindsay (1999) also stated that,
Motorola & Texas Instruments provide at least 40 hours of training to every employee
quarterly and this has significantly impacted on the employee performance.
In the fast pace changing world of business and environmental uncertainty,
organizations realize its limitation of dealing with new challenges (Tai, 2006).
However te further states that the firms should invest in training programs to make
their employees competent enough to face uncertainties and take effective decision in
time, in order to remain competitive in the market. Effective training is beneficial for
the firm in variety of ways, such as, it plays a vital role in building and maintaining
capabilities, both on individual and organisational level, and thus participates in the
process of organisational change (Valleet al., 2000). Moreover, it enhances the
retention capacity of talented workforce, hence decreasing the unintentional job
rotation of the workers (Jones and Wright, 1992; Shaw et al., 1998). Furthermore, it
indicates the firm’s long-term commitment towrds its workers and increases the
employee’s motivational level (Pfeffer, 1994). All these contributions lead to a
achieving competitive advantage (Youndtet al., 1996) and to an enhancement in
employee performance and organisational productivity (Bartel, 1994; Knoke and
Kalleberg, 1994; Huselid, 1995; Delery and Doty, 1996)

Training
Training is defined as the process of gaining and developing abilities, knowledge, and
skills of individuals in order to perform daily operation smoothly in organizations
(Latham, 1988). 18 Training is believed to assist employees to accomplish
organizational goals by transferring learned knowledge at workplace (Salas, Cannon-
Bowers, Rhodenizer, & Bowers 1999). Training is an effort from an organization
which has planned to provide assistance on employees’ learning (Noe, 2013).
Training aims to deliver knowledge and skills that workrelated, as well as putting
effort in changing employees’ attitude (Werner & DeSimone, 2011). Training is
described as the process that assists organizations to close the discrepancies between
expected outcomes and current performance (Elnaga & Imran, 2013). In order to work
more effectively, training can help by substituting traditional work practices to an
upgraded work practice (Kathiravan, Devadason, & Zakkeer, 2006). In the aspect of
mental, training could help the staffs in reducing stress and anxiety towards work
related problem because employees’ skills and knowledge had been enhanced (Chen,
Donahue, & Klimoski, 2004). It is believed that by providing training, employees
have lower level of intention to quit from their workplace because they are able to
complete their tasks by gaining new knowledge from training (Chen et al., 2004).
The major premise of performance education and raining is that troubled program as
those have cited, have replied primarily on formal management and education such
and Birmingham For instance, leaders and experiential learning (on the job) to
address the question above. Yet management is a deceptive concept even the
administrator who work through masters degree in administration may never be
exposed to some of the material critical to his daily organization problem. Administer
with a formal education in the field of education may not have maintain its currency
and perhaps majority of the manager in public organizations obtain degrees in such
field as law, engineering, medicine, or humanities the rather then systematical
educated or ffained performance management. Other companies focus on creating
those same results within different industries. Work Matters Executive and Corporate
Coaching specializes in raining managers within the insurance and f,rnancial services
indusfry, and Srategic Visions Inc. finds most of its business concentrated within the
health-care sector. Researchers identifie that employee training is a learning
experience that seeks relatively permanent change in employees that there improve
job performance. Thus taining involves changing skills, knowledge, organization need,
the work to be done ftaining program should natwally. Once attitude, or behavior.
Determination of the and the skill necessary to complete this work, identify
deficiencies lies, have a grasp of the occur it does not necessarily follow that the rs
lmportant to put tralnmg m to perspectlve. by its contribution to performance, where
extent and nature of the raining needs. (James G. Maxham, 2008) Identifies if
deficiencies in performance manager should take corrective action. It Training is
costly, rather judge raining performance is function of skills. (Annalisa Cristini,2004)
Identifies that training goal must be established. Organization explicitly states its
desire result for each employee. It is not adequate to say attitude or behavior.
Organization clarifies what is to should be tangible, verifiable, timely, and measurable.
(Tor Eriksson 2006)

The Importance of Training

Training is important and an imperative tool for the organization to revamp the
performance of all the personnel for organizational growth and success. It is
beneficial to both employers and employees of an organization. An employee will
become more efficient and productive if he is trained well. Firms can develop and
enhance the quality of the current employees by providing comprehensive training
and development. Training is essential not only to increase productivity but also to
motivate and inspire workers by letting them know how important their jobs are and
giving them all the information they need to perform those jobs (Anonymous, 1998).
The general benefits received from employee training are: increased job satisfaction
and morale , increased motivation , increased efficiencies in processes, resulting in
financial gain, increased capacity to adopt new technologies and methods, increased
innovation in strategies and products and reduced employee turnover.

Training Objectives
1) Management objectives such as: ease the burden on supervisors, skills
acquisitions for leaders suitable for their work, assist management to discover the
right man in the right place, supply workers with all information they need related to
the project objectives and policies, preparing leaders and develop their abilities.
(Maher, 1999).
2) Economic and social objectives such as: increased production efficiency,
increased the standard of living for workers, increased the efficiency of individuals
to achieve the objectives of the organization, change the individual’s behavior to suit
the requirements of the work performed, and change directions to provide
knowledge and skill. (Alqadi, 1998).
3) Technical objectives such as; reduced the maintenance costs, improve customer
services, increased work efficiency, reduce the damaged and lost, raise the technical
level of workers, and improve worker performance.

The Areas of Training

There are five key areas for training: Knowledge, skill, techniques, attitudes,
experience. These areas can be achieved through a good training programs goal
related to these areas. .The training can be divided according to different bases,
including location, time, type.... etc.

Performance
Performance is the overall outcome or success of a person during certain periods of
duty compared to the standard of the work, the targets or criteria that have been
determined in advance and have been agreed (Rivai, 2004). Rivai further states that
performance does not stand alone but is related to job satisfaction and compensation,
influenced by the skills, abilities and individual traits. In other words, employee
performance is determined by the ability, desire and environment. Employee
performance is influenced by various characteristics of each individual. In the
development of a competitive and globalized era, companies certainly require
employees who are high achievers. Objective performance assessments will give the
right feedback to behavioral change toward increased productivity and expected
performance. Assessment of performance in various forms such as key performance
indicators or key performance index is basically an objective and systematic process
to collect, analyze and use the information to determine the efficiency and
effectiveness of employees’ duties and achievement of targets. Performance
assessment is based on understanding of knowledge, skill, expertise and behavior
necessary to do a good job and a more extensive analysis of the attributes and
behavior of individuals. Based on the points of assessment variables such
performance, the indicators used by the AQ: 2 authors as a measure of performance
variables in this study are elements of work assessment as follows: impact on work
improvement, employee development, employee satisfaction, basis for compensation
decisions and skill in communicating which will be described in the questionnaire as
to describe the situation in PT. Kiyokuni Indonesia.
Performance is management about creating relationships and ensuring effective
communication. Performance focuses on what is needed by organizations, managers
and workers to achieve the goals. Performance is about how the implementation of
tasks and responsibilities are managed to obtain success (Habaora, 2015a; Wibowo,
2017). Ferdinandus (2020) states that performance (achievement) is a result of work
achieved by an individual in carrying out his duties which are assigned to him based
on skills, experience, and sincerity. According to Wibowo (2017), performance is a
series of employee behavior values that contribute, both positively and negatively to
the completion of organizational goals. Performance can also be understood as a
process that is referred to and measured over a certain period based on predetermined
terms or agreements (Looy and Shafagatova, 2016). Irham (2014) states that work
results that have a strong relationship with organizational strategic objectives,
community satisfaction and economic contribution can be interpreted as performance.
Kasmir (2016) stated the same thing, that performance is the result of work and
behavior that has been achieved in completing the tasks and responsibilities given in a
certain period. Performance itself can also be understood as the result of a process that
directs and is measured over a certain period of time in accordance with
predetermined terms and agreements. Thus, performance in human resources can be
defined as work performance or output, both the quality and quantity produced by
individuals within a certain time in carrying out their work in accordance with the
responsibilities obtained. In an organization, it cannot be denied that the quality factor
of performance management has an effect as a driven force which is able to accelerate
in that direction. Good quality performance cannot be obtained by just turning the
palm of the hand but it must be done with hard work and high discipline, both in the
short and long term.

Hellriegel, Jackson and Slocum (1999) defined performance as the level of an

individual's work achievement after having exerted effort. Job performance can be
viewed as an activity in which an individual is able to accomplish the task assigned to
him/her successfully, subject to the normal constraints of reasonable utilization of the
available resources ( Dar, Akmal, Akram & Khan, 2011) . Motowidlo, Borman, &
Schmidt (1997) defined job performance as the overall expected value from
employees’ behaviours carried out over the course of a set period of time. This
definition according to Bullock(2013) although fairly technical, includes specific
ideas that are worth breaking down: • Performance is a property of behavior, or,
plainly stated, what people do at work • An employee’s behavior adds expected value
to the organization – that is, an employee’s behaviors may be distinguished as helping
or hindering an organization, but the outcomes of employee behaviors are rarely
measured so their value is merely expected Performance can further be broken down
into two distinct types: Task Performance and Contextual performance. Task
Performance are the actions that contribute to transforming raw materials to goods
and services, the things that are typically included in job descriptions. Examples
include selling clothes, drilling holes, or teaching a class. Contextual performance are
the behaviors that contribute to overall effectiveness through supporting the social and
psychological climate of the workplace. Examples include cooperating with
teammates, diffusing conflicts, and cleaning up the conference room (Borman &
Motowidlo, 1993) (Bullocks 2013).
Three basic assumptions are associated with the differentiation between task and
contextual performance (Borman & Motowidlo, (1997); Motowidlo & Schmit, 1999), :
(1) Activities relevant for task performance vary between jobs whereas contextual
performance activities are relatively similar across jobs; (2) task performance is
related to ability, whereas contextual performance is related to personality and
motivation; (3) task performance is more prescribed and constitutes in-role behavior,
whereas contextual performance is more discretionary and extra-role (Sonnentag &
Frese, 2001). Measurement of employee performance is an activity that is very
important because it can be used as a measure of success in supporting the success of
the organization’s employees (Said, 2008).

Employee performance
Performance of the employee is considered as what an employee does and what he
doesn’t do. Employee performance involves quality and quantity of output, presence
at work, accommodative and helpful nature and timeliness of output. According to the
results of the study conducted by Yang (2008) on individual performance showed that
performance of the individuals cannot be verified. Similarly he asserts that
organizations can use direct bonuses and rewards based on individual performance if
employee performance is noticeable (Yang, 2008). In line with Yang (2008), Bishop
(1987) investigated employee performance and revealed that acknowledgment and
recognition and reward of performance of employees direct the discrimination
between employee productivity. Moral and productivity of employees is highly
influenced by the effectiveness of performance of an organization and its reward
management system (Yazıcı, 2008). To satisfy customers, firms do much effort but do
not pay attention on satisfying employees. But the fact is that customer would not be
satisfied until and unless employees are satisfied. Because, if employees are satisfied,
they will do more work therefore ultimately customers will be satisfied (Ahmad,
2012). Employee performance is actually influenced by motivation because if
employees are motivated then they will do work with more effort and by which
performance will ultimately improve (Azar and Shafighi, 2013)

Work performance
According to (Rivai, 2018) Performance is "the results or overall level of success of a
person during a certain period in carrying out the task compared with various
possibilities, Performance is a condition that must be known and informed to certain
parties to find out the level of achievement of an agency's results associated with the
vision carried an organization and know the positive and negative impacts of an
operational policy taken ". According to (Siswanto, 2012) "performance is the
ability of a person to produce a product or service to encourage the achievement of
desired goals. Performance is the result of quality and quantity of work achieved by
an employee in carrying out their duties in accordance with the responsibilities given
to him ". According to Gibson in (Rajagukguk, 2016) stated that the Performance
(performance) is an organizational behavior that is directly related to the production
of goods or the delivery of services. According to (Mangkunegara, 2015) where stated
that Performance (work performance) is the work of quality and quantity achieved
by an employee in carrying out their duties in accordance with the responsibilities
given to him.

The relationship between Training and employees performance

Most of the previous studies provides the evidence that there is a strong positive
relationship between human resource management practices and organizational
performance. (Purcell et al., 2003). According to Guest (1997) mentioned in his study
that training and development programs , as one of the vital human resource
management practice, positively affects the quality of the workers knowledge, skills
and capability and thus results in higher employee performance on job. This relation
ultimately contributes to supreme organizational performance. The result of Farooq.
M, & Aslam. M. K (2011) study depicts the positive correlation between training and
employee performance as r=.233. Thus, we can predict from this finding that it is not
possible for the firm to gain higher returns without best utilization of its human
resource, and it can only happen when firm is able to meet its employees job related
needs in timely fashion. Training is the only ways of identifying the deprived need of
employees and then building their required competence level so that they may
perform well to achieve organizational goals. Moreover, the result of the study of
Sultana. A, et.al. (2012), conducted in telecom sector of Pakistan, states the R² as .501
which means that 50.1% of variation in employee performance is brought by training
programs. Further, the T-value was 8.58 that explains training is good predictor of
employee performance. As depicted by the work of Harrison (2000), learning through
training influence the organizational performance by greater employee performance,
and is said to be a key factor in the achievement of corporate goals. However,
implementing training programs as a solution to covering performance issues such as
filling the gap between the standard and the actual performance is an effective way of
improving employee performance (Swart et al., 2005). According to Swart et al.,
(2005), bridging the performance gap refers to implementing a relevant training
intervention for the sake of developing particular skills and abilities of the workers
and enhancing employee performance. He further elaborate the concept by stating that
training facilitate organization to recognize that its workers are not performing well
and a thus their knowledge, skills and attitudes needs to be moulded according to the
firm needs. There might be various reasons for poor performance of the employees
such as workers may not feel motivated anymore to use their competencies, or may be
not confident enough on their capabilities, or they may be facing work- life conflict.
All the above aspects must be considered by the firm while selecting most appropriate
training intervention, that helps organization to solve all problems and enhance
employee motivational level to participate and meet firm expectations by showing
desired performance. As mentioned by Swart et al.(2005) this employee superior
performance occur only because of good quality training program that leads to
employee motivation and their needs fulfilment. According to Wright and Geroy
(2001), employee competencies changes through effective training programs. It not
only improves the overall performance of the employees to effectively perform the
current job but also enhance the knowledge, skills an attitude of the workers necessary
for the future job, thus contributing to superior organizational performance. Through
training the employee competencies are developed and enable them to implement the
job related work efficiently, and achieve firm objectives in a competitive manner.
However, employee performance is also effected by some environmental factors such
as corporate culture, organizational structure, job design, performance appraisal
systems, power and politics prevailing in the firm and the group dynamics. If the
above mentioned problems exist in the firm, employee performance decreases not due
to lack of relevant knowledge, skills and attitude, but because of above mentioned
hurdles. To make training effective and to ensure positive effect of training on
employee performance these elements should be taken into consideration Wright and
Geroy (2001). Besides, Eisenbergeret al.(1986) stated that workers feel more
committed to the firm, when they feel organizational commitment towards them and
thus show higher performance. Bartel (1994), reports that there is a positive
correlation between effective training program and employee productivity, however to
make it possible, (Swart et al., 2005), it is the responsibility of the managers to
identify the factors that hinders training program effectiveness and should take
necessary measures to neutralize their effect on employee performance. In addition,
Ahmad and Bakar (2003), concluded that high level of employee commitment is
achieved if training achieve learning outcomes and improves the performance, both
on individual and organizational level. These findings are also consistent with the
results of Kim (2006) research work.Generally, it can be debated that the effect of
training program on employee outcomes such as motivation, job satisfaction and
organizational commitment, did not received much attention so far. Rare work was
done to test whether firms can affect their workers attitude, through proper training
interventions. According to Lang (1992) training should be planned in such a way that
it results in organizational commitment. On the other hand Gaertner and Nollen (1989)
proposed that employees’ commitment is a result of some human resource practices,
that is, succession planning and promotions, career development and training
opportunities. All these practices, when achieved results in greater employee
performance. Moreover, Meyer and Smith (2000), investigate the link between
Human Resource Management practices and organizational commitment, so as to
discover the causes of effective employee performance. Although the above literature
provides the evidences regarding the benefits of training and its positive influence on
employee performance, Cheramieet al. (2007), argued that, management, mostly feel
hesitant while investing in its human resource due to various reasons. Sometime, in
spite of receiving effective and timely training programs, employee are intended to
cash it for the sake of their own market value and employment opportunity , or willing
to change job just because of higher salaries, and thus, firm investment in training
results as a cost rather than profit. It is also observed that due to the resistance of the
organization towards offering training, propels individuals to invest themselves for
their career development and greater performance (Baruch, 2006). As mentioned by
Arnoff (1971), training sessions accelerate the initiative ability and creativity of the
workforce and facilitate to avoid human resource obsolescence, that may occur
because of demographic factors such as age, attitude or the inability to cope with the
technological changes. Obisi (2001), reported that training is a systematic process of
enhancing the knowledge, skills and attitude, hence leads to satisfactory performance
by the employees at job. He further mentioned that the need and objectives of the
training program should be identified before offering it to the employees. Scott,
Clothier and Spriegel (1977) argued that training is the crux of better organizational
management, as it makes employees more efficient and effective. They further
elaborated that training practice is have a strong bond with all other human resource
practices as (Mamoria, 1995), it enables employees to develop themselves within the
firm and raise their market value in the market. Moreover, training supports to shape
employees’ job related behavior and facilitate them to participate for the success of
the organization and ultimately firm gets higher return due to superior performance of
its employees. Mamoria (1995), further mentioned that a well trained worker is able
to make a best use of organizational resources along with minimum level of wastages.
As stated by Ohabunwa (1999), when employees are well trained organization can
delegate responsibility and authority to them with full confidence of ensuring
organizational success.