The Impact of Training and Motivation on Performance of Employees

Abstract

This research aim is to study the impact of training on performance of employees. There are various factors like training, motivation, technology, management behavior, working environment, where each factor contributes to overall employee performance. Highly contributing factors are those having relative importance given by employees. This study concludes that training contributes greatly to employee's performance in comparison with other factors like motivation, technology, management behavior, working environment. There is positive relationship between the employee's performance and training and motivation. The study shows that training and motivation has positive impact on performance of employees. This study concludes that organization having good training plans for employees can enhance the performance of employees. All the organization that wants to enhance their employee performance should focus on training as it also motivate employees to achieve higher performance levels.

Full text

Electronic copy available at: http://ssrn.com/abstract=2206854

Electronic copy available at: http://ssrn.com/abstract=2206854
Business Review - Volume 7 Number 2July - December 2012
The Impact of Training and Motivation
on Performance of EmPloYees
Muhammad Ikhlas Khan
International Islamic University, Islamabad, Pakistan
Abstract
This research aim is to study the impact of training on performance of employees. There
are various factors like training, motivation, technologt, management behavior, working
environment, where each factor contributes to overall employee performance. Highly
contributing factors are those having relative importance given by employees. This study
concludes that training contributes greatly to employee's performance in comparison with
other .factors like motivation, technology, management behavior, working environment.
There is positive relationship between the employee's performance and training ond
motivation. The study shows that training and motivation has positive impqct on
performance of employees. This study concludes that organization having good training
plans for employees can enhance the performance of employees All the organization thqt
wants to enhance their employee performance should focus on training as it also motivate
employees to achieve higher performance levels.
Key words: Employee's performance, Training, Motivation
Introduction
The possible influence of concessions and takeovers on corporate performance will be
addressed in the following analysis data set and use a large new dataset on employee held
stock in US public companies... (Blasi et al, 1996) We define significant employee
ownership as... (Jackson et al, 1997)...The definition of employee performance as the
logarithm of net sales per employee was consistent with prior empirical work (Huselid,
1995). ... Net sales per employee is an incomplete measure of firm performance, however,
it does not reflect overall firm profitability. ...
Employee performance management is a process that companies use to ensure their
employees are contributing to producing a high quality product or service. Employee
performance management encourages the employee to get involved in the planning for the
company, and therefore anticipates by having a role in the process the employee will be
motivated to perform at a high level. Performance is the ratio of output to input.
Performance is a process of continuous improvement in the productior/supply of quality
output/service through efficient and effective use of inputs, with emphasis on teamwork
for the betterment of all. Training is needed to increases the performance of employees, if
84

Business Review - Volume 7 Number 2
employees are trained they will be well aware of their job specifications, skill needed to
perform job well and would be able to use new technology. Then their motivation level
which will also be beneficial in enhancement of performance, working
will be increased,
environment and management behavior will also result in the maximized performance
which will be help to achieve the organization goals effectively. Competitiveness is based
upon the concept of performance, which is very closely linked to that of training. As every
organization through out the world wants to compete against their competitors, they must
increase their performance to do so. When employees are given training they feel some
betterment in their own performance and hence work more hard to achieve personal and
organizational goals. Training can be define as; Training is a learning process that
involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing
attitudes and behaviors to enhance the performance of employees. This research will of
be
helpful to understand the importance of training and the effect of training on performance
which is positive. Research will also throw light on other factors of performance such as
motivation, working conditions, management behavior and technology. Research will
suggest the better way of training to management and also suggest that organization must
give importance to fraining of employees and training must be for suffrcient duration.
Literature Review
Bartel (1994) looked at the link between training and performance using around 150
firms from another surveys of employers, the Columbia business school survey. Becker
(1975) defined general raining as the type of training that raises performance by equal
amounts in ttre firm where it was provided and in other firms. In contract, specific training
only raises performance in the firm providing it.
(Puffers and Cohen, 1984) when flrm specific skills are needed to conduct work
effectively, the firm must make ftaining investment so worker can develop specific skills.
Once workers obtain the flrm specific skills needed for effectiveness on the job. The
employer must pay wages reflecting workers higher performance level. Often this is
accomplished by promoting the employees on a career ladder as each new set of specific
skill is attained.
July - December 2Ol2
increased performance. Specifically,
programs enhanced performance by atracting and retaining high
quality employees, by reducing the extent to which work life conflicts interfere with work.
(Greenhaus and Parasuraman, 1999; I-obel and kossek, 1996; lobel 1999)
The Detroit performance center had virtually no lasting impact but staff training and
development received little continued attention.
Muhammad Ehsan Malik (January, 2011) tells that the
are equally conEibuted towards the achievement of a
equally responsible and the responsibility of both
organization.
A third limitation
mechanisms through
argued that work-life
of this work is the failure
which work-life programs to directly measure the underlying
performance of male and female
goal. Both male and female are
have equal importance in the
85

Business Review - Volume 7 Number 2July - December 2Ol2
The employee's performance directly influences the organizational effectiveness. Man and
woman should motivate equally. Eliminate the inequality and give equal importance to
both. The employee's performance increased when they involved in decision making of
the organization... (Salman naseer, January, 201 I )
Researdes have identify that the employees motivations are increased when the
they are empowered, then they did well. Kreitner
organization empower them. When
descibe.s(I995) $re psychological way that gives ttre purpose and direction to behavior.
According to Buford, Bedeian, & Lindner (1995) there is a predisposition to behave in a
purposive manner to achieve specific, unmet needs and according to Bedeian (1993), an
internal drives to satisry an unsatisfied need and the will to achieve.
Motivation Theories
Getting people to do their best work, even in trying circumstances, are one of managers'
most enduring and slippery challenges. Indeed, deciphering what motivates us as human
beings is a centuries-old puzzle. Some of history's most influential thinkers about human
behavior among them Aristotle, Adam Smith, Sigmund Freud, and Abraham Maslow have
struggled to understand its nuances and have taught us a tremendous amount about why
people do the things they do.
Maslow hierarchy of needs (1943) discussed five levels of employee needs, physiological,
safety, social, ego, and self- actualizing. According to Maslow lower level needs had to be
satisfied before the next higher level need would motivate employees. Herzberg,
categorized motivation into two factors: motivators and hygienic (Herzberg, Mausner, &
Snyderman, 1959). Motivator or intrinsic factors, such as achievement and recognition,
produce job satisfaction. Hygiene or extrinsic factors, such as pay and job security,
produce job dissatisfaction.
Vroom's theory is based on the belief that employee effort will lead to performance and
performance will lead to rewards (Vroom, 1964).
Rewards may be either positive or negative. The more positive the reward the more likely
the employee will be highly motivated. Conversely, the more negative t}re reward the less
likely the employee will be motivated. Adams' 0reory states that employees strive for
equity between themselves and
employee outcomes over inputs is
l96s).
other workers. Equity is achieved when the ratio of
equal to other employee outcomes over inputs (Adams,
will be repeated
(Skinner, 1953).
Managers should
Skinner's thmry simply states those employees' behaviors that lead to positive outcomes
and behaviors that lead to negative outcomes will not be repeated
positively reinforce employee behaviors that lead to positive outcomes.
Managers should negatively reinforce employee behavior that leads to negative outcomes.
86

Business Review - Volume 7 Number 2July - December 2012
Training
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)
Objectives of the Study
The main objectives of this research are as follows.
To know the impact of training and motivation on performance of employees in
the organizations
To examine the role
performance of training and motivation in enhancement of employee's
To gauge the correlation between training and performance of employees
To get the results in meaningful way that can help tlre organizations in future
we want to change employee skill
change and by how much. The goal
The Problem Statement
How training influences the performance of employees in the organizations?
87

Business Review - Volume 7 Number 2July - December 2Ol2
Theoretical Framework
The following variables have been
dependent variable. identified and labeled as independent variables and
Performance
Performance is the dependent variable which depends upon training of employees.
Literature review also reveals that performance is dependent variable and it is increased by
providing effective training. There are some other variables or factors that affect the
performance of employees are as given below.
Motivation
The motivation is very imporont in influencing the employees to accomplish individual
as well as the organizational goals. This inner drive motivates the employees to form and
exhibit the purposive behavior to achieve specific, unmet needs. This little encouragement
on the part of organization enables them to accomplish their goals efficiently by
acknowledging employees on their work and effort, providing them good work
environment, considering their needs and forming pleasant job design. The motivation
increases performance.
Training
Training is the independent variable in this research. Literature review suggests that
training of employees has a deep effect on the performance of employees. There is direct
relationship between training and performance i.e. ffaining increases the performance.
Figure I shows the relationship between dependent and independent variables.
Fig.l
P=a+BT+BM
Where:
P = Employee performance
T =Training
M = Motivation
Training
Performance of
employee
Motivation
88

Business Review - Vclume 7 Number 2July - Decembr 2Ol2
Hypothesis Development
The hypotheses are developed in this research as follows.
Hl : Training increases the performance of employees.
[I2: Motivation increases performance of employees.
Methodology
This study aims to identify the impact of motivation and training on performance of
employee and determines the other factors that affect the performance. The prime focus of
this study is to carry out to identify the effect of training on performance of employee. The
contribution of other factors is enhancing the performance of employees. To measure the
relationship and identify the impact of training on employee's performance, some
statistical tools or techniques are applied on data like Pearson correlation and regression
analysis through SPSS software.
l. Sample
Respondents for the questionnaire were randomly chosen from one institute and one
bank that are use to train their employees. The chosen bank and institute was tlabib Bank
and Federal Urdu University of Arts Science and Technology Islamabad. A sample of l0O
employees from the above mentioned organization is taken.
2. D$a Collection Instrrunents
The principal data collection
the performance of employees.
affect performance.
instrument is structured questionnaire, chosen to determine
The questionnaire consisted of different factors that could
3. Procedure
The procedure used for data analysis is significant. The instrument used for data
collection is sructured questionnaire which is the primary source of data collection. The
data has been dealt using ttre SPSS software. After compiling the output of questionnaires
the variables are entered in software and the data is also entered. There are some statistical
techniques are applied on data to find out the results. ln the fust instant reliabiliry shtistics
analysis measured to find out the data is reliable or not. In the second instance descriptive
statistics analysis is measured to check the mean and standard deviation for the variables.
Correlation is the statistical technique which is applied on data to gauge the relationship
between the raining, motivation and employees performance. Regression is ttre statistical
technique applied on data to measure the impact of faining and motivation on
performance of employees in the organizations.
89

Business Review - Volume 7 Number 2July - December 2012
4. Research Model
The research model is developed on ttre basis of earlier research studies; we have
included the variables are as performance, training and motivation.
Tested Equation is as follows:
Y= o+PrXr+ FzXz
Y = Performance
Xl= Training
X2= Motivation
5. Research Findings
a) Reltabili8 Statistics Analysis
Table I
Variables Chronbach's Alpha N of Items
Perforrnance 0.376 3
Training o.679 5
Motivation 0.475 5
Table I show the reliability analysis of all the variables, the value of chronbach's alpha
0.376 for performance and 0.679 for training and 0.475 for motivation.
b) Descriptive Statistics Analysis
Table 2
Table 2 provides the information about descriptive statistics of the variables. N denotes
the total number of sample which is taken for analysis. The standard deviation and average
is also shown in above table. Performance has the mean of 1.7700 with standard deviation
of O.48477. The mean of training is 2.1440 and standard deviation is 0.62609. The
standard deviation of motivation is 0.61 168 and mean is2.3720.
c) Pearson Correlation Analysis
Variables Mean Std. Deviation N
Performance 1.7700 0.48477 100
Training 2.1440 0.62609 100
Motivation 2.3720 0.61168 100
90

Business Review - Volume 7 Number 2July - December 2Ol2
Table 3
Table 3 shows the correlation between ttre independent and dependent variables.
According to the calculated values, performance of employees has positive correlated with
taining and motivation, as 0.321 and 0.092 respectively. on the other hand, positive
correlation is found between training and motivation. It is concluded that if employees are
adequately provided training, they perform better and their perforrnance is increased as
proven by primer data. Training, motivation, (if provided effectively) has a Positive effect
on performance.
Pearson Correlation Coefficient: Hypothesis Testing
There are two hypotheses that are being tested:
Hl: Training increases the performance of employees
H2: motivation increases performance of employees
The table below is a summary of hypothesis testing which indicates the relations of
employee's perfonnance and the two independent variables.
Hypothesis Variables Pearson Correlation Relationship
Hl Training 0.321 Positive
Performance Training Motivation
Performance
Pearson
Correlation o.321*' 0.092
Sig. (2-Lailed)
Training
Pearson
Correlation 0.321" 0.214'
Sig. (2-tailed)
Motivation
Pearson
Correlation 0.092 0.214'
Sig. (2-tailed)
**. Correlation is significant qt the 0.01 level (2-tailed).
*. Correlation is significant at thc 0.05 level (2+qiled).
Table 4
9t

Business Review - Volume 7 Number 2July - December 2012
Positive
o.o92
Motivation
As per relationship between the independent variables, based on Pearson Correlation, the
values of relation between independent variables in this study are less than 0.70 indicating
that correlations between each of independent variables are not too high. But the
relationship is found positive and training and motivation increases more the performance
of employees. There, is direct relationship between employee's performance and both
training and motivation. The hypothesis H, and [I, are accepted.
d) Regression Statistics Analysis
Table 5
Table 5 provides a summary output about regression statistics and number of observations
to be taken. According to above calculations, regression statistics consist of 100
observations, in which multiple R has a value of 0.322 and R square has 0.104
accordingly. The value of adjusted R square is 0.085. This calculation shows standard
error of .+efg,, which is acceptable. The value of R indicates that there is positive weak to
moderate relationship among the employee's performance and independent variables. The
value of R square shows that lO.4 Vo of total variation in employee's performance is
explained by iraining and motivation. Model I explains lO.4Vo variation is explained by
the given variables and the rest of variance is explained by the other factors or variables
whiih are not included in this model. So the remaining variance is unexplained.
e) Coefficients (a)
Std. Error of the Estimate N
Model RR Square Adjusted R Square
Io3224 0.104 0.085 o.46369 100
a. P r e di ct o rs : ( C o ns t qnt ), M o t iv at io n, Tr ai ning
Unstandardized Coeffi cients
Std. Error
5.363
o.224
l.z0t
(Constant)
3.210
0.3 t6
0.076
0.245
Training
o.243
o.024
0.078
0.019Motivation
a. Deperulent Variable : Performance
92

Business Review - Volume 7 Number 2July - December 2Ol2
Table 6 shows the beta values for variables and constant in ttre model. The value of beta is
0.245 for raining and 0.019 for motivation which are independent variables. The value of
beta basically shows the expected change or increase in dependent variable for change or
increase of l unit increase in independent variable. It means that both the variables
ffaining and motivation conhibutes toward
because negative beta value is not found.
motivation is positive on performance of employees in the organizations.
The research model is developed as follows.
Y=q+B1X1 +p2X2
Where Y denotes Performance, X1 denotes training, X2 denotes motivation, a denotes the
constant value in the model.
Y = L201 + 0.245 Xr + 0.019 Xz
Conclusion
This study is conducted to identiff the affect of certain factors on the
Table 6
performance. The shrdy found that there are two factors influencing employee's
that are raining and motivation in the organizations. The relationship of
variables with dependent variables is also examined. All factors, two factors
positively related with performance of employees. This study provides some
s the employee's performance positively,
The impact or influence of training and
employee's
performance
independent
found to be
information
regarding that two factors are positively correlated with performance of employees in the
given organizations. All these factors have direct relationship with performance. An
increase in any of independent variable will cause increase in performance. There are two
factors (training and motivation), each factor
performance, and all these factors influence the
bank and institute is Habib Bank and Federal Urdu University of Arts Science and
Technology Islamabad. Asample of 100 employees from the above mentioned
organization is taken. The principal data collection instrument is structured questionnaire,
chosen to determine the performance of employees. Training conftibutes greatly to
performance, after finding the answers of questionnaires some statisticat techniques are
applied like Pearson correlation and regression analysis to find out the results in
meaningful way that can help the organizations in future. The statistical techniques are
applied on data through SPSS software and get the results. All the correlation results are
positive so that on the basis of those results training increases the performance and
performance have positive relationship wittr ftaining, motivation. The research concludes
that if the organization having good haining plans for employees can enhance the
performance of employees that is helpful in increase in performance of employee as well
as of organization. All the organization that wants to enhance their employee performance
should focgs on training, motivation of employees to achieve higher performance levels.
This study concludes that raining conffibutes greatly to employee's performance in
comparison with other factors like motivation, technology, management behavior,
working environment. There is positive relationship between the employee's performance
play a key role in increase in overall
performance of employees. The chosen
93

Business Review - Volume 7 Number 2
and training and motivation. This study shows that faining and motivation have expected
on performance of employees
mentioned organizations in
organizations in future especially related to higher education and banking sectors.ffi
References
Adams, J. S.
experimental
Blasi, J., Conte, M., 1996, Industrial & Inbor Relations Review - questia.com
New York: Columbia University
Stock Ownership and Corporate
Labor Relation Review, Vol. 50,
lobel 1999, Marc Holzer
(autumn, 1977) p. 4
motivation to work, New
H. Knott., 1993, tue
July - December 2012
positive
for the impact
above in the organizations.
future. It will also This study can helpful
be helpful for other
1965 Inequity in social exchange.ll In L. Berkowitz
social psychology. New York: Academic Press
(ed.), Advances in
Barrett, A., & O'Connell, Philip, J.,2001, Does Training Generally Work? The Returns to
In-Company Training, Industrial and Inbor Relation Review, Vol. 54, No. 3, p. 647-662
by Cornell University
Bedeian, A. G., 1993, Management,3rd Edition, New York, Dryden Press
Becker, 1975, Does Training Generally Work? The Returns to In-Company Training:
Industrial and labor Relation Review, p. 649, Vol. 54, No. 3 (April 2001) By Cornell
University
Becker, Gary S., 1975, Human Capital, 2nd Ed., and
hess.
Blasi, J., Conte, M., & Kruse, D., 1996, Employee
Performance among Public Companies, Industrial and
No. I by Cornell University
Greenhaus and Parasuraman, 1999; Lobel and kossek, 1996;
David Tatge, Source: Public Performance review, Vol, 2, No 4,
Herzberg, F., Mausner, B., & Snyderman, B. B., (1959), the
York:john Wiley & Sons
Holzer, Hany J., Richard N. Block, Marcus Cheatham, and Jack
Training Subsidies for Firms Effective? The Michigan Experience
http;//birmingham.bizjournals.com/birminefiam/stories/2ffiJ/ , Training
firms help companies increase profitability, Performarlce, Access date 6-7-2009
Industial and l.abor Relations Review, Vol. 46, No. 4 (July), pp.625-36.
Huselid, M. A., Jackson, S. E., & Schuler, R. S., 1997, Tectrnical and Strategic Human
Huselid, Mark A. i996. "The Impact of Human Resource Management Practices on
Turnover, Pro- ductivity, and Corporate Financial Performancc." Academy of Management
Journal, Vol. 38, No.3 (June), pp.635-72.
94

Business Review - Volume 7 Number 2July- Decemfu2012
Jantti, M., Brasberg, B., Raaum, O., Naylor, R., Bjorklund, A.; Biksson T., Osterbacka,
Eva., 2006, Centre for labour Market and Social Research (CI.S); University of Aarhus -
Department of Economics
Kreitner, R., 1995, Managemcnt,6th ed., Boston, Houghton Mifflin Company
Malik, M.8., Ghafoor, M. M., Naseer, S.,2011, Organizational effectiveness: A case
study of telecommunication and banking sector of Pakistan, Far East Journal of
Psychology and Business, Vol. 2, No. I
Marc Holzer David Tatge, Source: Public Performance review, Vol. 2, No 4, (Autumn,
1977) p.3
Maslow, A. H., 1943, a theory of human motivation. Psychological Review, July 1943.
370-396
Puffers and Cohen, l9M, Research Notes and commcntanes, The Impact of work life
programs on Firm Performance , p. 1225, Vol. 21, No. I 2, (Dec 2000 ) John Wily & sons
Resource Management Effectiveness as Determinants of Firm Performance, Thc Acodemy
of Managemcnt JournaL, Vol. 40, No. l, p. l7l-188
Research Notes and commentaries, the Impact of w;k tife programs on Firm
Performance, p.235, Vol. 21, No 12, (Dec, 2000) John Wily & sons
Shahzad, K., Sarmad, M., Abbas, M., ,& Ktran, M. A., 2011, Impact of Emotional
lntelligence (EI) on employee's performance in telecom sector of pakistan, Afican
Joumal of Business Management, Vol. 5, No. 4, pp. 1225-1231
Skinner, B. F., 1953, Science and Human Behavior,New York: Free Press
Vroom, V. H., 1964, Work and motivation. New York: Wiley
Let us think of the Latin saying that goes:
Nemo vi rest qui mundum non reddot
meliorem?
"What man is a man who does not make
the wodd betterT'
95