Effects of Training and Development on Firm Performance: A Research Work based on Some Selected Organizations

Abstract

Training and Development programs directly and indirectly impact the business growth. A strategic decision about these programs will help an organization to gain and sustain competitive advantages. In this study we tried to show the relationship between training & development programs and firm performance as well as the extent of this relationship. We also identified various training programs undertaken by different organizations. Training and development programs were divided into three subcategories such as learning opportunities, training design and employee performance. These subcategories were considered as independent variables and firm performance as dependent variable. Primary data were collected by using questionnaire method and secondary data were from various journals, newspapers, articles and research works. Various questions are selected on the basis of dependent and independent variables to make the questionnaire. The questionnaire was close-ended and divided into two parts. One part contained yes-no questions which helped to identify the current training and development programs undertaken by firms and the other part contained questions with Likert Scale which helped to find out the relationship between dependent and independent variables. 150 respondents filled out our questionnaire and after that the data were analyzed. To analyze data, we have used SPSS (Statistical Package for Social Science) and Microsoft Excel 2007. Various statistical tools such as frequency, correlation, graph, hypotheses, regression etc. have been used for this study. After analyzing data, we found that most of the organizations undertake various types of training and development programs for their employees but some advanced level trainings are quite uncommon. We also found that there has a positive correlation between training and development and firm performance. Finally, we recommend organizations to handle various training and development programs keenly so that their performance increase and they can sustain successfully for the long run.