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Impact of Training in Public Sector Banks

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A STUDY ON THE IMPACT OF TRAINING AND MOTIVATION ON THE PRODUCTIVITY OF EMPLOYEES IN A PUBLIC SECTOR BANK IN INDIA

INTRODUCTION

Human resources or the work force, is the key to any organization’s performance even in today’s highly automated environment. The output given by employees is dependent on many factors like training, motivation, technology and management behavior. This study aims to establish the impact of training and motivation on the employees productivity.
Performance is normally measured in terms of the output given by the employees to a given amount of input; i.e., the performance can be defined as the ratio of the output to input. There are certain methods to measure the productivity of employees, the major one being the turnover per employee. However this may not be truly reflecting on the profitability of the firm.
Performance is also said to be a process of continuous improvement in the production/output/services through efficient use of the inputs with emphasis on team work. Banks usually measure the productivity by the ratio Total Volume of business/ No of employees, which is also truly reflecting on the profitability of any bank if profitability is said to be a parameter for productivity.

Training:
Training is needed to improve the performance of the employees. Training is the learning process which provides knowledge required for the specified job, skills required for performing the job, and change in attitude and behavior to suit the job requirements.

Motivation
Motivation is defined as an internal or external driving force that produces the willingness to perform an act to a conclusive end (Nnabuife -2009).
An individual’s skill to perform a job is a function of his abilities and aptitudes and the training acquired. A divergence of these two variables causes a divergence in he skill. However the divergence on a particular work is a product of skill and motivation. Divergence in motivation causes divergence in performance.

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REVIEW OF LITERATURE
Harold Koontz and Cyril O Donnel (1979) demonstrated that good executives look for the future and therefore every firm has responsibility of helping in the development of men who have the requisite potential to contribute their full measure to the management of an enterprise. They also make the distinction between ‘ Managerial Development’ and ‘Managerial Training’. Managerial Development is referring to the progress made by the manager in the process how to manage, and Managerial Training is the programme devised to facilitate the learning process.
R S Dwivedi postulates that four steps are for learning to take place: stimulus, response, motivation or drive and reward or incentive. He further states that for training to effective these aspects need to be considered. Prof. N G Kale and S A Latif suggests that training of workers is necessary due to technological changes rapidly taking place in the industrial field. Expenditure on training is a profitable investment to the employer in the long run. It is an integral aspect of personnel development.
R S Dwivedi in his work comments that an individuals skill to perform a job is a function of his abilities and aptitudes and th training acquired. A divergence of these variable causes a divergence in skill. However the divergence on a particular work is a product of skill and motivation. Divergence in motivation causes divergence in performance. Therefore performance level is higher if motivation level is higher. Motivation is an inner force which mobilize the activities of the individual and channelize the inner energies towards these directions, which help him in accomplishing his goals.
Hodges and Johnson observe that motivation in organizational settings refers to the willingness of an individual to react to organizational requirements in the short run. The greater the magnitude of positive motivation of an individual the more will be likelihood that he will perform effectively in his position.
OBJECTIVES OF THE STUDY
The study aims to find the correlation between Training and Motivation imparted to employees and the employee productivity. The objective of the study is to find out
1. Whether Training imparted to an employee improves his performance and increases his productivity and
2. Whether motivation (both internal and external ) produces enhancement in performance and productivity.
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Theoretical Background of Training
(with special reference to Syndicate Bank a Nationalized Bank)
Training and development
Everyone in an organization is expected to perform in order that the goals of the organization are achieved. Better performance leads to better productivity and better productivity to prospectiy-prosperity for the employee and the organization he belongs to. Any deficiency in performance is therefore o be attended to immediately..

Training is one among the different remedies for poor performance. It attempts to improve the performance of the employees. It aims at transforming poor performers to good performers, good performers to better performers and better performers to innovative performers. The problem of inadequate performance arises out of lack of job related knowledge, skill and attitude. Every member of the organization is required to perform at a given level which is the standard level. Any one performing below this standard level requires training. Training bridges the gap between actual performance and desired level of performance. Through Training, modification/change of attitude and enhancement of knowledge and skills are possible.
The Oxford dictionary defines Training as “bringing or reaching a desired standard of efficiency or condition or behavior”. All of us have been trainers at one time or other in our lives. As parents we train our children, as workers we train our fellow workers, as learners we train ourselves and as human beings we even train animals. Behavioral changes brought about by training result in more efficient performance. So whenever a person is involved in changing the behavior, he may be said to be a trainer.
Purpose of Training as we understand:

It is to provide the trainees with necessary facilities and opportunities to enable them to acquire knowledge, develop skills, and cultivate attitudes for the efficient and effective discharge of their duties. That is, to fill the gap between the required skills and competence and expertise actually possessed by the trainees.

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Education and training
Education is slightly different from training. Education is a broad based training for life. It is intended to enable people to open their minds, learn to work from the very fundamentals and to radically analyse the procedures/systems that are already in place. Training is specific to each type of work. It does not encompass the whole of life process and the necessities of learning for leading life. It confines itself to the immediate job or task on hand which has to be performed at an acceptable level of efficiency.

Teaching and Learning
Teaching is something which one person does to another. Learning is what one person does for himself. Teaching can be carried out through telling explaining, demonstrating, citing examples, discussing etc. Learning occurs only when the trainee absorbs or grasps the subject mentally, translates the same into words or action that makes sense, places the understood matter alongside his past experiences/learning and performs something with the newly acquired knowledge.

What is a Training Programme?
A training programme is a series of linked events, designed when completed to equip people with the range of competencies needed to do a whole job. A training programme is schedule of the training specification in terms of units of instruction, or learning experience, set out in chronological sequence and showing the time allotted for each, the place, the method of instruction and the person responsible for giving it.
What are the stages in the Training Process ?

The training process is completed in four stages viz. identifying training needs, planning and designing the training course, implementing the training and assessing the results. Everyone of these process calls for careful preparation, planning and execution.

Who needs training?
Everyone who works in an organization needs training because of changes taking place in job requirement, technology, policies and procedures etc. New skills, adjustments in attitudes and new knowledge are required to meet the challenges posed by changes taking place.
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Where should the training be conducted?
Training may be implemented in an separate training institute where an atmosphere conducive to adult learning is in place. As adults learn only in non-threatening environment, a friendly approach has to be adopted. Facilities provided should be of the highest quality possible. Training can also be imparted on the job where trainers or supervisors may execute the training.
When should the training be imparted?
Training should be imparted when performance problem surfaces. However training does not solve all performance problems ad inadequate performance may not necessarily be due tolack of knowledge or skill. So how do we identify training problems? We have a set of thumb rules for this purpose viz.
1. Training is required only when people don’t know how to do a job and they are required to do that job.
2.Training does not help if people already know how to do a job.
3. Mere knowledge and skill are not sufficient to ensure expected level of performance.
4. Training does not have shelf life. In other words the training imparted to people should be put to use by them immediately after the training process.
5. The trainers’ role does not guaranteeing performance but ensure skill development.
6. Ensuring on the job performance is the function of line managers and not the trainers.
No time should be lost in exercising training intervention when changes are taking place at a hectic pace. People have to unlearn many things, which they have learnt over the years so that new learning may be effective. Any manifestation of substandard performance from any employee is an indication that training intervention needs to be administered without any loss of time. Periodical training planned over the career span will also be useful.
Who are trainers?
At the outset trainers are not teachers. Trainers are facilitators for learning and nothing more. Their role is to create a friendly atmosphere for learning, design the training programme in such a way that the trainees learn willingly under a non threatening setting. Their job is to encourage participative and consultative learning which are the basic ingredients of adult learning. He should also help the participants to assess the performance themselves.

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Systematic approach to training: * Identifying performance problem which necessitates training * Identification of training needs * Formulation of training objectives * Designing a training programme * Implementation of training * Assessment of training results
Training programme in relation to performance problem:

Performance problem ---- Training Programme--Satisfactory Performance

Identify training needs

Performance

Planning and Design Evaluate Results

Implement training

Pre-design thoughts: * Assess behavior change * Put people first in your design * Assess what change the training seeks to bring about in the participants * Is it job specific? * Is it chosen change? * Whether head based or heart-based?
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Designing a Training Programme
Design of Training Programme can be described a s the process of developing training curricula and materials to meet training and development needs. Effective training programme design therefore should be oriented towards job performance rather than towards subject matter content or training staff preferences.

Essential elements of programme design
The essential elements of programme design are: * Needs analysis * Learner analysis * Setting objectives * Designing the training curriculum * Selection of training and development methods * Selection of training and development media * Evaluation
Training needs analysis helps to identify and prioritize the most critical problems and needs and to determine which of them could be solved by training and /or by organizational development intervention.
Learner analysis is important to identify individual needs and learning potential or trainability or trainees. Fundamental differences between individuals generally influence their learning capabilities and hence influence training programme design. These differences could be in the following areas: * Intellectual ability * Prior knowledge or expertise in the areas to be taught * Motivation to learn
Intellectual ability could be reflected in the learners capability to plan their own learning, and conceptual and intellectual readiness to cope with learning tasks and materials. Where prior knowledge or expertise still exists, there is an excellent opportunity for tem building by selecting groups of people with varying expertise to work on selected work related issues and projects and thus facilitate the exchange of experience e, as well as use th synergy to enrich learning.. Motivation influences the effectiveness of learning and depends greatly upon such factors as the values that learners place on the learning task or objective in relation to their present job and their future career the perception of their own knowledge an d trainability and the difficulty of the task or objective.
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Training objectives can be conveniently classified into the following two categories:
Programme objectives: which include training objective for the whole training programme
Session objectives: which include training objective for the individual training sessions
Performance based training objective must have the following elements: (SMART) * Specific: related to definite action * Measurable: describing the quality or quantity required * Attainable: possible to achieve, not just a target * Relevant: to do with the behavior required * Time related: performed at or within a specified time

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Theories of motivation
Motivation is defined as an internal or external driving force that produces the willingness to perform an act to a conclusive end.
As already mentioned, the performance of an employee on a particular work is the product of skill and motivation. In the form of an equation, we may express the relation between motivation and as follows: P = f(S,M) where P stands for performance , S for skill and M for motivation.
Divergence in motivation causes divergence in performance.
1. Abraham Maslow’ s theory of hierarchical needs:
Maslow postulates that human needs can be arranged in a scale in the order Physiological, Safety, Social, Esteem and Self actualization. Once the lowest physical needs are satiated, they cease to be motivators of human behavior. The individual then tends to satisfy the successive higher level of needs, which are arranged in the order of prepotency. Therefore to motivate an employee who has satiated this lower level needs, the management has to provide him challenging positions to arouse his craving for achievement or position. Maslow also suggested that the employees who has needs in the lower level only can be motivated by money which is challenged by Lawler in his study “The Mythology of Management Compensation”. Lawler proved that money is a motivating factor even for people whose basic needs are met.
2. Herzberg’s Theory: Psychologists have suggested two kinds of motivators: extrinsic and intrinsic factors. The extrinsic factors include salary increases, technical supervision or having a competent superior, the human relations aspect of supervision, policy and administration, work conditions physical surroundings and job security. Intrinsic factors include achievement or completion of an important task successfully, recognition, responsibility for one’s own or others work and advancement or changing status through promotions. Extrinsic factors are called hygiene factors and intrinsic factors are called motivational factors. As motivators provide the indication for commitment and drive, they must be built into the job assignment by the management. Attempts must made further to prevent hygiene factors from becoming source of dissatisfaction.
3. Exchange Theories:
The central idea of the theory is that discrepancies between what an individual does, wants or expects and what he achieves motivate him to minimize the discrepancy. The exchange theories are based upon reward- cost outcomes of interactions and involve four concepts: reward, cost, outcome and comparison level. The rewards must exceed the costs in order to be attractive.
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4. Instrumentality or Expectancy Theory : Vroom presents a comprehensive statement of instrumentality in industrial psychology which provided a basis for subsequent development in this respect. This motivational model asserts that an individuals motivation toward an activity at a point of time is ascertained by the anticipated values of all the outcome, including both positive and negative of that activity , multiplied by the strength of his expectation that the activity will result in the outcome pursued. Thus motivation is viewed as the function of the anticipated values from an activity and the perceived possibility that these values will be accomplished by the activity. The anticipated value is called ‘valence’ and has been defined as the strength of an individual’s choice for one outcome as compared to others. The perceived possibility is called ‘expectancy’ and has been defined as the strength of belief that a specific activity will be accompanied by a specific outcome. Motivational relationship can be expressed in the formula
Motivation =Valence x expectancy.
Obviously, motivation leads to a specific activity which in turn leads to goal accomplishment and finally to the satisfaction of the individual.

Motivation for achievement, power and affiliation :
McClelland has studied extensively on this subject and formulated the theory. It has been defined as a desire to succeed in competitive situations based on a standard of excellence determined by others or one’s own preceding standard. The individual propelled by achievement motivation is constantly pre occupied with the desire for improvement and better performance in his position and tends to prefer situations where he can get quick and precise feedback on high performance. Individuals who are equipped with high achievement motivation are fond of taking calculated risks and search environments conducive to challenging opportunities, personal responsibility, autonomy and a sense of mastery. Such individuals derive greater excitement from the solving of a complex problem rather than the accompanying money or praise, and tend to make outstanding executives or entrepreneurs.
Power Motivation has been defined as a desire to affect the behavior of other individuals and to control and manipulate the surroundings. Individuals with high power motivation becomes strong in people who feels themselves inadequate to achieve the respect and recognition from other individuals and subsequently go out of their way to seek the attention of others. Power motivation may be in negative and unsocialised or positive and socialized forms. Such motivation is likely to energies and direct people to seek leadership roles. On the other hand in the negative form they may tend to be exploitative or autocratic stle.
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RESEARCH METHODOLOGY

Nature of study: Study is analytical in nature using mainly primary data
Sample selected: For the study 10 staff members of Syndicate Bank is selected mainly from Thiruvalla Branch
Source of data : Primary data was collected with the help of structured questionnaire distributed to the staff members, and secondary data was collected through various sources like house magazines, training brochure etc.
Tools for analysis : The data is analyzed by applying statistical tools.
Research model:
The following variables have been identified and labeled as independent variable and dependent variable.
Performance : a dependent variable depending on training of employees as revealed by literature review
Motivation : an independent variable. Literature review reveals that the performance of Employees is dependent on motivation
Training : Independent variable. Literature review suggests that the training imparted to Employees has a deep effect on the performance of the employees.

The picture suggests the relationship between motivation, training and performance. . Training | Performance | Motivation | |

Performance is given by the equation: P= a+BT+BM, where P= Performance, T = Training, and M= Motivation.

Procedure: The instrument used for data collection is structured questionnaire which is the primary source of data collection. Statistical tool like correlation is used to gauge the relationship between the performance, training and motivation. Regression technique is used for measuring the impact of the training and motivation on the dependent variable .

Limitation of the study :
1.The study is limited by the small size of the sample. The staff members of only one branch could be taken for convenience of measuring the variables and due to the limited reach in other geographical areas.

2. Another limiting factor is the difficulty in measuring the intangible like motivation perceived by the individual staff members while monetary incentives such as hike in salary and allowances are common across the Banks.

3. The impact of the training programme is perceptible after a lapse of considerable time. The measurement of productivity attributable to individual staff is difficult but available as a group only.
ANALYSIS AND INTERPRETATION OF RESULTS
The results were analyzed using statistical tools and the analysis is explained elsewhere in the study.
1. It is observed that productivity improved considerably on imparting training especially in the lower age group. There is a positive correlation between the training imparted and performance.
2. Similarly, it is observed that internal and external motivation produced fantastic results in certain staff members, while the remaining had standard results.
The inference is that the hypothesis “ Performance is improved with training and motivation” stands proved.

Findings and suggestions

The study proved beyond doubt that Performance of the employee is dependent on the Training and Motivation and that the productivity of the organization is impacted positively by both training and motivation. Hence to improve productivity and to establish healthy industrial relations the following points are suggested.

1. The organization should periodically review the training needs of the employees to cope with the changing work situation, be it change in technology or innovation in products. The training so imparted will equip the staff to meet the challenges in the changing business scenario.
2. Analyze the motivational needs of the employees. If the need is external motivation, find out the ways and means to implement in line with organizational demands. If internal motivation is needed, set up suitable communication channels so that the top management can be in touch with the middle and lower level employees.
3. The staff must be given opportunities to understand their potential and challenge themselves to the achievement motivation. Rewards and recognition should come in their way so that they feel compensated adequately both emotionally and materially.
4. The Management should have proper systems in place to have periodical interaction with the staff so that the grievances can be redressed and they are motivated to perform to their capacity.

CONCLUSION The study is conducted to understand the effect of Training and Motivation on the productivity of the employees. The study provides the information that two factors , Training and Motivation are positively correlated to productivity of organizations or performances of employees. The organization chosen for conducting the study is Syndicate Bank Thiruvalla branch. The study concludes that if the organization have good training plan for the employees, then the performance of the employees will be improved and thereby productivity of the organization. Similarly, motivation through external or internal means ( that is, monetary incentive or otherwise) will greatly improve performance. The outcome of the study is useful for similar organizations for improving their overall performance.

References:
1. Harold Koontz and Cyril O Donnel - Essentials of Managemnet Tata Mc Graw Hill Publishing co. Ltd Edition 1977
2.R S Dwivedi Human Relations and Organisational Behaviour Oxford and IBH Publishing Company Ltd. Edition 1979
3. Kale , Latif and M Ahmed Industrial Organisation and Management Chetana Prakasan, Bombay Edition 1986-87
4. The Giant House Magazine of Syndicate Bank, Published form Manipal
5. www.syndicatebank.co.in -Official website of Syndicate Bank

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...GROWTH AND RISK FOR COMPANIES LISTED AT THE NSE | MURIITHI ERIC  | THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE PRACTICES AND FINANCIAL AND FINANCIAL PERFORMANCE OF INVESTMENT BANKS IN KENYA | NICHOLAS KIPYEGOMEN CHEPKOIWO | FACTORS AFFECTING THE DEVELOPMENT OF EMERGING CAPITAL MARKETS.  THE CASE OF NAIROBI STOCK EXCHANGE | KIPKURUI KIMOSOP | THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF INSURANCE COMPANIES IN KENYA | OMENDA CHRISTOPHER ODHIAMBO  | EFFECT OF STOCK SPLITS ON STOCK LIQUIDITY OF COMPANIES QUOTED AT THE NSE | GEORGE MARTIN NZIVE KASYOKA | THE USE OF STRATEGIC POSITIONING TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE AT SAFARICOM LIMITED | MUTIE PETER KIOKO | RELATIONSHIP BETWEEN PRIOR PERIOD DIVIDENDS AND FINANCIAL PERFORMANCE OF FIRMS LISTED AT THE NSE  | EVANS ODHIAMBO OYIEYO | BALANCE SCORE CARD AS A STRATEGIC MANUFACTURING INDUSTRY IN KENYA | SAMBA STEPHEN MIDEGA | INVESTIGATION OF CAPACITY MANAGEMENT STRATEGIES AND THEIR INFLUENCE ON SERVICE QUALITY: CASE OF NAIROBI SUPERMARKETS. | LUCY MUTHEU KIILU | CAUSES OF INDUSTRIAL DISPUTE IN GARMENT FACTORIES AT THE ATHI RIVER EXPORT PROCESSING ZONES, KENYA | JENIFFER N. MULI | THE RELATIONSHIP BETWEEN HOUSE PRICES AND MORTGAGE CREDIT IN KENYA | LOISE KINYUA WANJIRU | STRATEGIC RESPONSES OF EQUITY BANK TO FRAUD RELATED RISKS | DOMSIANA ANYANGO ONYANGO | THE RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND INVESTMENT STRATEGIES OF PENSION FUNDS IN KENYA | MARGARET W. GICHANE...

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...The global financial crisis in 2008-2009 made a severe change to the world economy with include United States. The problem begins in the US Financial system, arising from the deteriorating quality of subprime assets that started in 2007, that caused into a major horrible global financial crisis in the last half of 2008. From a housing crisis, it quickly grew into a banking crisis with the investment and merchant banks first absorbing the impact before it spread to the commercial banks. The main reason of this crisis was Lax Regulation and Low Lending Rates. Moreover the greed of top management people of the financial institutions was another reason of this crisis. Especially, several failing of many large U.S and global financial institutions in September 2008 generated widespread fear of a systemic disruption across global financial markets which in turn had led to the “freezing” of the interbank and credit markets in many financial centres around the world. Despite the unprecedented large and aggressive financial measures taken by the authorities, the crisis intensified as prices of a large number of classes of financial assets collapsed resulting in a huge negative income and wealth effect. With the United States’ economy contracting sharply, it sent ripples across export-dependent Asian economies, which began to face a contraction as a consequence. Although the Malaysian economy was insulated from the direct effects of financial exposure because the new derivatives were not...

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...and, which can also easily and confidently adapt to the changing market and technological conditions in the regional and global economy”. The challenge is therefore to mobilise human and other resources towards that goal. 2. Economic Reform Programmes implemented by the Tanzanian Government have been based on the philosophy that Tanzania is committed to a market economy whereby the private sector will take the lead in creating incomes, employment and growth. On the other hand, the State will be a producer of public goods, play a regulatory role to level the playing field and create conducive environment for the private sector to take the lead in driving economic growth. This philosophy is evident in almost all policy statements made since 1986 and in particular after 1996. The private sector has started playing an ever- increasing role in creating incomes and employment. Small and Medium Enterprises (SMEs) account for a large share of the enterprises active in Tanzania. In fact Small and Medium Enterprises are the emerging private sector and do form the base for private sector-led growth. 3. SMEs, important as they are to the economy, have been facing a number of problems despite the on-going reform programmes. This is due to a number of factors, one of which is a persistent culture that has not recognised the value of entrepreneurial initiative in improving the lives of the people. Other factors include complex, bureaucratic and costly legal, regulatory and...

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