Research Journal of Finance and Accounting www.iiste.

org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.9, No.6, 2018

Impact of Training and Development on Employee Performance:

A Comparative Study on Select Banks in Sultanate of Oman
Shouvik Sanyal* Mohammed Wamique Hisam
Department of Management and Marketing, Dhofar University, PC.211, Salalah, Sultanate of Oman

Abstract
This paper studies the impact of Training and Development practices on the employee performance in the select
Omani Public and Private sector banking organizations. The aim of the paper is to analyze the impact of training
and development practices on employee performance. The study adopts descriptive research design and it
imbibes both primary and secondary data. Convenience sampling method is applied for collecting the data
through administering a structured questionnaire. The sample size for the study is 300. Statistical tools like
Pearson Correlation Analysis, Regression Analysis and ANOVA were applied to test the proposed alternate
hypothesis. The study concludes that Training and Development Practices have a positive influence on employee
performance in the Omani Banking Industry.
Keywords: Training and Development, Employee Performance, Impact.

1. Introduction
Human resources have emerged as the most valuable assets of an organization especially in the technology
fuelled environment of the twenty first century. It is widely accepted that besides resources such as money
materials and machines, the success of every organization primarily hinges upon the quality of it’s human
resource. Globalization has led to the opening up of hitherto closed economies and has led to increased
competition and easier movement of skilled workers between countries. This has focused the spotlight on skilled
and competent and trained executives who can give--- and direction to the organizational efforts and reach the
organizational objectives organisations have to modernize, diversify and restructured themselves to face the
onslaught of technological advances, innovations consumerism increasing liberalization and cross border trade.
Organization has to prepare, develop and update their process and personnel to accept the challenges posed by
the rapid changes sweeping across the world and parading into all sectors and industries. This requires gearing
up all the resources to well crafted market strategies, development of human resources R & D and technology up
gradation.
All these fast paced changes in strategy, structures technology and process however often lead to role
ambiguity leaving employees unsure of their roles and responsibilities. The lacunae in the formal education
system also means that many employees are not equipped with the specific skill sets are required in an
organization. As result, most employees lack the requisite skills competencies, abilities and knowledge that are
required for the accomplishment and specific tasks. Extensive training therefore becomes necessary to enables
them to make a meaningful contribution towards the organizations growth.
According to Armstrong (2001), “Training is a systematic development of the knowledge, skills and
attitudes required by an individual to perform adequately a given task or a job” Training helps employees to
upgrade old talents and requite new ones. Training gas several beneficial effects such as improving morale,
increasing productivity enhancing job satisfaction and commitment of employees towards organizational goals.
It helps employee to balance their work life and personnel life and improves communication at all levels of
employment.
Training programs have been proved to enhance efficiency of management and groom leaders for the future.
Succession planning becomes easier due to the availability of a pool of capable and skilled executives. The
creativity and innovation skills of employees can be unleashed through appropriately tailored training programs.
Employee development refers to the steps taken within a company to encourage each employee’s
professional and personal growth. It is of utmost importance for employees to keep themselves abreast with the
latest developments in the industry to survive the fierce competition. Development programs include personal
growth and professional growth. Soft skills training, computer training , fitness sessions , seminars and
workshops are all examples of development
Employees develop a feeling of ownership and bonding which helps to reduce employee turnover in the
long run Stress levels are reduced as expertise and productivity levels of employees increase. Adequate training
enables employee to learn and useful the latest technologies which are necessary in the present era.
It is amply clear that training provides several benefit to both employees and organisational and helps
employees to align their personnel goals with the goals of the organization. The benefits of training are spread
through the employees’ career and help them in career advancement by making them ready to take up greater
responsibilities in the future.

53
Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.9, No.6, 2018

2. Scope of the Study

The outcomes of this research will help and support the banks to identify the Training and Development
factors that influence the employee performance in the banking organizations. On the other hand, the research
will be helpful in the department of human resource of every organizations which are trying to increase the
productivity of their employees.

3. Review of Literature
Training is very important for employee’s performance in acquiring competencies and help organization to retain
its employees through satisfaction and motivation. Globally day by day the world is modernizing and moving
rapidly which is creating many challenges for the organizations. Training can overcome and make an employee’s
capabilities more efficient which also contributes in the efficiency of the company.
According to Zohair Abbas (2014) “training as an essential element to an employee for the development of
the companies because some of the employees have lack of knowledge skills and competencies and failed to
accomplish task on timely basis.” The sample has been taken from both males and female employees of National
Bank of Pakistan. The research is descriptive study and it’s quantitative in nature. Primary data was collected
and although secondary data also used to classify the work done. Study provides an empirical evidence of factors
that effects employees training and performance of organization.
Mumanthi (2014) in their study on the Kenyan police force says that “there are number of performance
concerns about the Kenya police that have arisen due to lack of taking action, failing to prevent and detect
crimes, and police forces citizens pay bribe to get their constitutional rights.” The sample size was three hundred
and eight four police officers. Study was done in Nairobi Kenya and the time period was 2014. Coefficient
Reliability was used to justify the findings. From the findings it was indicated that organization should carry out
the training needs assessment to determine level of performance. He further concludes that proper monitoring
and evaluation influenced the performance of police in Kenya. Frankin Dang Kum (2014) postulates that
“ineffectiveness of training and development of employees in the organization reduces the organizational
productivity.” Data was collected through random sampling method. Research is limited for the employees of
ESCON and the population size was concise 60 out of 87 employees. He concludes that the companies who
invest on human resource management view training as an opportunity for increasing their long term
productivity.
Asma Mehmood (2012) argued that “training influences an organization’s commitment and retention
towards the performance of employee. The data was collected from 100 employees of the service sector at
Rawalpindi Islamabad Regression methodology has been used in this research. The regression analysis
confirmed that satisfaction and mode for career advancement has direct and useful effect on organizational
commitment and increases work efficiency of the employees. The findings conclude that training has strong
relationship between retention & performance and organizational commitment.
According to Azizullah Ghorbani and Dr. Muhammad Ghaffari Fard (2015) “customers staffs training is
very essential to compete the pressure of challenges which bank industry faces on the daily basis.” Random
sampling method was used and research was conducted in Tehran, Iran. They suggested that customers training
is very beneficial to both managers as well as the employees because it affects the performance of employees
and also beneficial in performing non-bank financial activities. Githinji Angela (2014) suggested that the training
effects the performance of employee among the international civil servants. A survey research design was used
for this study 144 staff of the United Nation supports office for the African mission in Somalia involved in this
research the finding showed that in general training enhanced employee engagement on change processes.
Komal Javaid, Naveed Ahmad & Nadeem Iqbal (2014) highlighted the relationship between training and its
impact on employee’s performance in telecommunication sector D.G Khan Pakistan. 150 employees were
chosen for the data analysis.
Finding showed that the managerial performance is meaningfully resolute through the training instructed to
the personnel. They further say that training is a significant predictor of the performance. Cynthia Owusu
Boateng (2011) pointed the impact of training on employee performance at SG -SSB. Descriptive quantitative
method was used in the research and related articles of the topics. She concluded that “that indeed training has a
significant impact on employee productivity. Training provide benefits to both the performance employees and
the organization through the development of knowledge, skills, competencies, behavior and abilities.”
Benedicta Appiah (2010) suggested that “training enhances knowledge, skills, attributes and competencies
and ultimately worker performance and productivity in organization.” Data was collected from 30 employees of
HFC bank Ghana. Cross functional study was used to justify the findings. Findings of the study showed that
training improves the skills, knowledge, abilities, competencies, behavior and confidence of the employee. Atola
Janepher Adongo (2013) suggested that “mostly organization neglects the importance of training which leads to
high turnovers and also increased the cost to hire new employees and finally slowed down the organizational
profitability.” 419 employees were chosen for data collection in Telkom orange Kenya. Correlation methodology

54
Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.9, No.6, 2018

was used in the study. Findings showed that employees feel motivated by the training offered and indeed many
have participated in training programs.
Mahbuba Sultana (2013) in her study in Bangladesh concluded that “that effective training increase the
productivity of employees.” Data was collected from 1414 employees. The study was done in Dhaka.
Correlation methodology was used in the research. She concludes that employee is the valuable resource for any
organization and the success and failure depends upon the performance and productivity of the employees and
this study proves that the training improves the productivity of the employees.
Ahmed Mohamed Mohamud (2014) suggested that “training affects the employee performance in public
sector organization of Kenya.” Data was collected from 100 staffs of Machakos branch. Data analysis was done
through descriptive statistic. Findings showed training has a significant impact on employee performance and
benefits both the individual employees and the organization at large. Ngugi Martha Nyakeo Nyokabi (2014)
pointed that “training plays a significant role in the development of competencies of new as well as existing
employees for effective performance.”: Data was collected from 800 employees of geothermal development
company in Nairobi. This study shows the relationship between training & development and employee
performance. Findings shows that the training of employees is very important factors of both the organization
and the employees because it enhances work performance, motivate employees and build confidence in the
employees. The employees should acquire knowledge and skills which will assist them in improving their
performance by applying relevant courses based on the organizational objectives.
Tom Jingo Onyango (2012) suggested the influence of training and development on employee performance
at Medete Tea Factory, Kenya. Descriptive survey method was used and the data was collected through random
sampling method. Findings conclude that if Medete tea factory wants to hire and keep quality employees it is a
good policy to invest in training and development. Muhammad Ikhlas Khan (2012) highlighted the impact of
training in performance of employee some statistical tools or techniques are applied on data like Person
correlation and regression analysis through SPSS software. 100 employees were taken as a sample size of Habib
bank and Federal Urdu university of Islamabad. The findings conclude that training contributes significantly to
employee’s performance so all the organizations who wants to enhance the capabilities of their employee
performance should focus on training.
Ekta Srivastava & Dr Nisha Agarwal (2014) say that “that training is very necessary in this changing
environment.” Primary data was collected through questionnaire which was filled from various branches of axis
bank and secondary data was collected from annual rep orts of syndicate banks and axis banks for the year 2008
to 2013 and from RBI publication. The findings conclude that training in private sector bank is better than public
sector banks. In future training should be easy to understand so that it will beneficial for the banks as well as to
the employees.
Objectives of Study
1. To examine the impact of Training and Development practices on the performance of employees in the
Omani banking Industry.
2. To suggest certain procedural measures for effective implementation of Training and Development
practices in order to enhance the employee performance in the Omani banking Industry.
Hypothesis
In order to intensify the above objectives, the following alternate hypothesis was framed to test the statistical
significance and validity.
Ha1: There exists a strong relationship between Training and Development practices and employee performance
in banks in Oman.

4. Research Methodology
The present research study adopts descriptive research design and the study involves bank employees at different
managerial cadre from four commercial banks involving both public and private sector organizations in the
Sultanate of Oman. The public sector banks include National Bank of Oman (NBO) and Oman Arab Bank and
the private sector banks include Bank Muscat and HSBC Bank. The study area is restricted to Muscat and
Salalah cities in Oman and three branches from every selected bank were identified. From every banking
organization 75 respondents were selected and thus the four banking organizations project a sample size of 300.
Convenience sampling method was used in the study. Both primary and secondary data were used for the
research study. The primary data was collected through questionnaire method. The secondary data involves
various published documents. For collecting the data, convenience sampling technique was used. The statistical
tools like Pearson Correlation, ANOVA and Regression Analysis were used to test the proposed alternate
hypothesis

55
Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.9, No.6, 2018

Sampling Particulars
Type of
Name of the Bank Branch No. of Respondents
Organization
Public NBO Saadah 30
Salalah 30
Muscat 15
Oman Arab
Bank Saadah 30
Salalah 30
Muscat 15
Private Bank Muscat Saadah 30
Salalah 30
Muscat 15
HSBC Saadah 30
Salalah 30
Muscat 15
Total 300

5.Data Analysis
Table 1: Pearson Correlation Analysis
Training & Development
Employee Performance Practices
Pearson Correlation 1 0.536**
Employee Sig. (2-
tailed) 0.000
Performance
N 300 300
Training and Pearson Correlation 0.536**
Sig. (2-
Development tailed) 0.000
Practices N 300 300
** Significant at 0.01 level
It was found from the above table that the coefficient of correlation between Training and Development
practices and employee performance is 0.536 at a significance level of 0.01 (2-tailed). Thus it indicates that there
exists a strong linear correlation in between the two identified variables and they are closely related.
Table 2: Regression Analysis
Std. Error of the
R R square Adjusted R square
Estimate
0.468a 0.140 0.138 3.188

The Regression Analysis shows that there exists a moderate relationship between the Training and
Development practices and employee performance. It shows that the Training and Development practices
explained 46.8 % of the total variation in employee performance. Thus it indicates that there is a positive
relationship in between the two variables.
Table 3: ANOVA Results
Sum of
df Mean Square F Sig.
Squares
Regression 639.52 1 639.52 36.365 0.000b
Residual 2946.74 98 18.716
Total 3586.26 99
The above table indicates the variance in the model of Training and Development practices with employee
performance at F - value 36.365 (p= 0.000). It is further tested with regression coefficients for Training and
Development practices and employee performance.

56
Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.9, No.6, 2018

Table 4: Coefficient of Regression between Training and Development Practices and Employee
Performance
Unstandardized Standardized
Coefficients Beta t Sig.
B Std. err Coefficients
Constant 12.156 1.163 8.938
Training and
Development 0.22 0.046 0.296 4.247 0.000
Practices
The above table presents coefficient of regression in between training and development practices and
employee performance. It shows that regression results at a confidence interval level of 95% with un
standardized data coefficients value of 0.22 indicates a t – value 4.247. (p value of 0.000). Since the calculated
value (4.247) is greater than the critical value, alternate hypothesis is accepted. It indicates that Training and
Development practices have a strong influence on employee performance in the Indian Banking Industry.

7. Discussion
The study shows that Training and Development programs and Employee performance are interlinked in the
select banking industry. The analysis shows that Training and Development programs are strongly influencing
the employee performance in the select Banking Industry. It is found from the above study that Training
programs had certainly increased the performance levels of the select bank employees. The following
suggestions are given by the researchers to organizations to further enhance their training programs:
• It is important to identify clear goals and outcomes of the training program based on the
stage in which the business is in, the industry requirements and the roles and responsibilities of the
trainees
• Proper identification of training needs has to be done on the basis of a well-developed
training needs identification survey
• Training programs should have their roots in the basic elements like effective Customer
Relationship Management, Total Quality Management and Talent Management.
• It is important to develop engaging training resources and curriculum to engage the interest of
the employees.
 The employees should be given the opportunity to bridge the gap between knowledge and
action. They should be asked questions like “ What do you know now that you didn’t know before?”
 It is best to use a blended learning approach that includes training in several different formats
(like computer-based, instructor – led etc).

8. Limitations of the Study

This study is limited to bank employees of select private and public sector banks in the Sultanate of Oman. The
study is based on a limited sample due to constraints of time and resources. The same study san be conducted on
a larger scale across sectors and industries. Several other variables linked to training and development can also
be studied by researchers. Other statistical tools can also be used to study the impact of training on performance.

9. Conclusion
The findings in the research study indicate that there exists a strong correlation between Training and
Development practices and Employee Performance in the select banking organizations. This infers that there
exists a positive relationship in between
Training and Development practices and Employee Performance. Organizations which invest in their
employee skills by way of Training and Development activities will certainly reap the profits through employee
productivity.
It is very essential on part of the organizations to continuously develop the employee skills in order to
maximize employee performance. This is possible only by way of continuous training and development practices.
It is a well-known fact that untrained employees could not perform up to the mark and this will certainly affect
the overall performance of the organization. As the concept of Training and Development Practices have a
significant impact and influence on employee performance and productivity it is essential for the organizations to
maintain the ambient environment which involves continuous training process. Organizations which promote
training and development practices tend to possess a shining corporate image.

References
1. Armstrong, M. (2009) Armstrong’s Handbook of Human Resource Management Practice. 11th Edition,

57
Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.9, No.6, 2018

Kogan Page Limited, London.

2. Abbas, Z. (2014). Identification of factors and their impact on employees' training and organizational
performance in Pakistan. Kasbit journal of management & social science, 7(1), 93-109.
3. Appiah, B. (2012). The impact of training on employee performance: a case study of HFC bank (Ghana)
limited.
4. Adongo, A. J. (2014). Examining the effects of job training on employee performance in mobile telephone
industry. A case of Telkom orange Nakuru, Kenya (doctoral dissertation).
5. Boating, C. O. (2011). Impact assessment of training on employee performance: a case study of SG-SSB
limited (doctoral dissertation, school of graduate studies, institute of distance learning, Kwame Nkrumah
University of science and technology) .
6. Cole, G.A. (2002) Personnel and Human Resource Management. 5th Edition, York Publishers, Continuum
London.
7. Ghorbani, A., Fard, M. G., & Buinzahra, I. (2015). The impact of training on employee performance and
customer financial and nonfinancial performance of banks (case study: Tejarat bank). Aula Orientalis (issn:
0212-5730), 1, 105-118.
8. Githinji, A. (2014). Effects of training on employee performance: a case study of United Nations support
office for the African union mission in Somalia (doctoral dissertation, United States international university-
Africa).
9. Javaid, K., Ahmad, N., & Iqbal, N. (2014). Impact of training on employee performance in the context of
telecommunication sector of dg khan, (Pakistan). International letters of social and humanistic sciences, (06),
60-73.
10. Kum, F. D., & Cowden, R. The impact of training and development on employee performance: a case study
of Escon consulting.
11. Khan, M. I. (2012). The impact of training and motivation on performance of employees. Business review,
7(2), 84-95.
12. Mumanthi, C. (2014). Effect of training on the performance of national police service. Strategic journal of
business & change management,
13. Mahmood, A. Impact of training on commitment, retention and performance.
14. Mohamud, A. M. (2014). The effect of training on employee performance in public sector organizations in
Kenya. The case of Chif Machakos County (doctoral dissertation, university of Nairobi).
15. Ngugi, M. N. (2014). Perceived relationship between training and development and employee performance
in geothermal development company (GDC) (doctoral dissertation, university of Nairobi).
16. Najeeb, A. Z. (2013). The impact of training and information and communication technology on employee’s
performance: an empirical study on pharmaceutical manufacturing companies in Amman (doctoral
dissertation, Middle East University).
17. Onyango, T. O. (2012). The influence of training and development on employees‟ performance at Mudete
tea factory (doctoral dissertation).
18. Sultana, M. Impact of training in pharmaceutical industry: an assessment on square pharmaceuticals limited,
Bangladesh.
19. Srivastava, E., & Agarwal, N. (2014). Impact of training on bank employee performance: a comparative
study of public sector bank and private sector bank in India. International journal of advance research in
computer science and management studies.

58