IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE: A CASE STUDY OF ZENITH BANK, NIGERIA: CASE STUDY
Human Resources: Lynchpin of an Organization
Human resource is the lynchpin of any organization non-profit or profit oriented. Without people, an organization cannot exist. Attention on the people and the meeting of their needs is important to achieve corporate objectives. (Yahaya, 2007) Training and development is a very important component of human resource administration and management. For most organizations, employee training and development takes a large chunk of their budget. In fact training and development is a human resource and organizational strategy to improve employee performance, retain employees, reduce the cost of employee turnover, and ultimately increase productivity and increase company’s profits.
The Purpose of Training and Development
The purpose of training and development is extensive. Training and development builds a team of highly effective and efficient employees. Employees who are trained regularly are well motivated and have enhanced confidence and self-esteem. Training and development prepare and enhance employee’s knowledge and skills to enable them to adopt to new technology, the changes in the organization and the working environment. Training and development also creates a pool of employees for promotion or to replace employees who have left the organization.
Training and development enhances job satisfaction because the employees know what is expected of them as they are also equipped with the knowledge and tools to perform their job efficiently. Cross-training and multitasking of employees allows them to perform tasks other than what is relegated to them and gives them a sense of importance in the organization and feelings of security. The other purpose of training and development is for safety considerations, the handling of equipment, facility, and materials from the less risky to the very hazardous and the prevention of the cost of accidents. With training and development errors are reduced because employees are already well-equipped with the ways of the work (Mazin, n.d.)
No matter how expensive training and development is to organizations, the benefits are far-ranging and long-term for the individual employee and for the organization as well. Training and development is one of Zenith’s Bank competitive edge against other competing Nigerian Banks. With the total commitment of Zenith Bank to training and development it has enjoyed tremendous success in the banking business and also earned a good reputation in the country as a significant contributor to their GDP. Let’s take a look at how it is done in the bank.
The Zenith Bank in Nigeria employs training and development as an organizational strategy of retaining employees. In a study conducted by Gberevbie, (2010) over a five year period from 2000 to 2005, he found out, that strategies that target retention of employees brings more profit to the organization. He was referring to training and development as one of these strategies. Other strategies include the promotion of the organization’s image, participation of staff in the organizational decision-making, regular enhancement of salary and other benefits and fair and just treatment of employees. The need for the abovementioned strategies is imperative. Organizations that have succeed to establish appropriate and effective employee-retention strategies experience a lesser number of employee turnover.
Yahaya (2007) conducted a comparative study on Zenith Bank, Union Bank and First Bank. He found out that Zenith Bank generated more revenues by training its employees with the use of information technology. Although its number of employees is fewer compared to First Bank, Zenith gained more because of their effective and efficient employees. Zenith bank met the most standard requirements. Employees were satisfied with the training and development opportunities that are available at Zenith Bank. The opportunities mentioned by the employees are, job training, employee orientation, skills enhancement training, learning and practicing of new skills, and the regular and periodic schedule of training and development in all the areas of the organization. In Zenith bank, employees attend both in-house and off-shore training and development courses on a regular basis. This is also complemented by regular on-the-job-training and incentive schemes such as scholarship grants to children and spouses. Further in this bank formal and informal modes of communication are utilized to communicate with the employees.
Over-all Zenith Bank enjoyed a huge success more than the other banks studied. Zenith Banks competitive strategy is the development and retention of its human resources through training and development. With training and development, employees are more motivated, more effective and more efficient, and more productive. In the end, Zenith Bank regained its training and development investment because of its large margin of revenues.
Anonymous, n.d. Impact-Of-Training-And-Development-On-Employee’s-Performance-A-Study-Of-General-Employees. [online] Available at:< http://www.scribd.com/doc/38516457/IMPACT-OF-TRAINING-AND-DEVELOPMENT-ON-EMPLOYEE%E2%80%99S-PERFORMANCE-A-STUDY-OF-GENERAL-EMPLOYEES> [Accessed 26 May 2011]
Gberevbie, DE, 2010. Organizational Retention Strategies and Employee Performance of Zenith Bank in Nigeria. Abstract only [online] Available at:< http://ideas.repec.org/a/eme/ajempp/v1y2010i1p61-74.html> [Accessed 26 May 2011].
Mazin, R., n.d. Effects of Training on Employee Performance. [online] Available at:< http://www.ehow.com/list_5919320_effects-training-employee-performance.html> [Accessed 26 May 2011].
Yahaya, K.A., 2007. Impact of Investment in Human Resource in Human Resource Training and Development on Employee Effectiveness in Nigerian Banks. [online] Available at:< http://yahayahmad.com/IMPACT-OF-INVESTMENT-IN-HUMAN-RESOURCE-TRAINING-BY-Dr%20YAHAYA%28MRS%29.pdf> [Accessed 26 May 2011].