A Study on Effectiveness of Training in Indian Banks

International Journal of Recent Advances in Organizational Behaviour and Decision Sciences (IJRAOB)

An Online International Monthly Journal (ISSN: XXXX-XXXX)

Volume: 1 No.1 January 2014

85

www.globalbizresearch.org

A Study on Effectiveness of Training in Indian Banks

P. Akilandeswari,

Research Scholar,

Bharathiyar University,

Coimbatore, India.

Email: [email protected]

Dr. Jayalakshmi,

Professor, Prist University,

Tamil Nadu, India.

___________________________________________________________________________________

Abstract

Training and development are continuous process in improving the caliber of employees. It is

an attempt to improve their current and future performance but the organization should keep a

track on their performance after imparting them training it means training needs assessment

(Janice A. Miller, 2002) it is a systematic process of altering the behavior of employees in a

direction to achieve the organization’s goals. A training programme is an effort by the

employer to provide opportunities for the employees to acquire job related skills, attitudes and

knowledge. In order to meet the ever-growing needs of business and household banking has to

become dynamic and updated in modern scenario and also to take up this industry to the

heights of international excellence requires best combination of new technology and skillful

and talented manpower. Therefore most of the commercial banks either private or public adopt

training and development programmes at the time of induction, promotion and other situation.

In this research paper an attempt is made to learn that training and development exist in banks

and their impact to generate efficiency of employees to cater to the need of their customers.

___________________________________________________________________________

Key Words: Training and development, Indian banks, Customer satisfaction.

mailto:[email protected]




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1. Introduction

India is emerging as an economy much ready to accept the challenges from external

environment being one of the most consistently called Developing countries. India has shown

with times an urge to accept change when it was needed the most year 1991 marked a great

change with arrival of major policy reforms in the form of deregulation, privatization,

dereservation, foreign investment, export promotion and import substitution so on these

policies no lesser than a boon to Indian economy. It seems that most of the things have been

done but only on papers that is as far as making policies are concerned but practical ground has

not been touched completely.

Areas of prime concern like industry, education and human resources still waiting for the

major changes to take place and to stand at par with international standards. As

knowledge workers are the most valuable asset of any institution in 21st century( Peter F.

Drucker,1999) Let us talk about all the factors of production capital, land and labours being the

most active factor of production it exploits other passive factor of production though India has

the population increasing like jungle fire resulting in increased consumption and

production to fulfill its need but on the other hand failing policies as growth rate with keeping

pace with population is dissatisfactory what can be possible way out if education be made

vocational which will be like an early training for students to easily pick their career options

and unskilled labour made skilled with global requirement can sort out certain issues.

Labour availability at lower rates is the biggest opportunity for India to grow but it should work

on quality of it rather quantity. Quality suffers when quantity increases uncontrollably which is

what happening with India for example education an ideal class can be where students can have

quality learning and their strength doesn’t become an obstacle for the person imparting

knowledge as for him managing a class becomes part of education and for students class

becomes chat room full of talking crowd. Our study talks about training as a core solution for

human resources development especially in India where labour is available with less matching

training facilities. As A result of training the trainee learn new habits, refined skills and useful

knowledge during the training that helps him improve performance( V S Ramarao,2010).

Nowadays, banking is no more conventional sector because many private and public banks

are mushrooming with providing the best of banking under one roof. With drastic growth of

banks it calls for efficient and well trained staff members to handle/deal with the consumer

needs. Banks are shaping up as financial hub for their clients to grow in size and well

recognized in the world market. To pull consumers banks are offering traditional with advance

services like SMS banking, ATM, internet banking, priority banking, demat account

personalized banking and so on. So we can say that it caters to the need of the bottom to the




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highest class of society providing something to everyone. Universal banks have become

modern day’s supermarket extending almost every facility of banking under one roof.

The second generation of banking reforms was guided by the report of the committee. On

Banking Sector Reforms (again presided over by M. Narsimham) 1998. The reform measures

focused on strengthening the foundations of the banking system, streamlining procedures,

upgrading technology and human resources development and further structural changes.

47 Indian companies were listed in the Forbes Global 2000 ranking for 2009.[21] The 10

leading companies wherein State Bank of India placed world rank 150 and ICICI bank placed

329. Therefore it is clear that Indian banks are making marks on the face of world, in India

where companies are major players at the same place banks show prosperity and growth it is

clearly visible that these banks are performing not only because of efficient policies being

framed keeping consumer in center of focus but also concrete knowledge of policy makers

(human resources at all the level). Success is a cake to share when everyone is actively

involved.

2. Objectives of Study

To study training and development programmes undertaken by banks for their employees.

To analyze effectiveness of training and development programmes for employees to

discharge their duties.

To study how training and development programmes helps to achieve customer satisfaction.

3. Literature Review

“The purpose of a training needs assessment is to identify performance requirements or

needs within an organization in order to help direct resources to the areas of greatest need,

those that closely relate to fulfilling the organizational goals and objectives, improving

productivity and providing quality products and services.”( Janice A. Miller, SPHR and Diana

M. Osinski, Reviewed July 2002.)

“The most valuable asset of a 20th century company was its production Equipment. The

most valuable asset of a 21st century institution will be its knowledge Workers and their

productivity (Drucker 1999).”

``After employees have been selected for various positions in an organizations training

them for the specific tasks in which they have been assigned assumes great importance. It is

true in many organizations that before an employee is fitted into a harmonious working

relationship with other employees,, he is given adequate training.

Training is the act of increasing the knowledge and skills of an employee for performing a

particular job. The major outcome of training is learning. A trainee learns new habits, refined

skills and useful knowledge during the training that helps him improve performance. Training




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enables an employee to do his present job more efficiently and prepare himself for a higher

level job. (V S Rama Rao , 2010)

3.1 Why Training For Employees

To get an insight of the job by the new employees and also to understand work culture

followed in the organization.

To acquire knowledge in order to adopt any change in technology or any change affecting

the working of organization.

To get promotion as again change in nature of the work but increase in payment will

increase responsibility and challenges involved.

To deal with the expansion and diversification where companies initiates other areas of

business to gain their greater understanding.

In order to satisfy consumers from all walks of life banks need to have efficient

manpower which can be possible by offering them quality training , training programme should

keep pace with changing times it must be unconventional. Training changes mental and social

outlook of employees. Customers and their needs can be identified and they are satisfied

accordingly.

3.2 Research Methodology

Primary data includes data collected through questionnaire filled by the bank employees.

Secondary data includes reference books, journal, research papers and internet. Random

sampling of 50 respondents from employees from different banks like HDFC, ICICI, Vijaya

bank, Bank of Baroda, Repco Bank located in suburban area of Chennai

3.2.1 Analysis of Datas

Table 1.1: Age of Respondents

Inference

The above table shows that 28% of the respondents are at the age group from 18-25years,

32% respondents are from 25-30years of age, 28% of the respondents are from 30-35 years of

age and 12% of the respondents are above 35 years of age.

Table 1.2: Educational Qualification of Respondents

Opinion No. of Respondents Percentage (%)

18-25 14 28.0

25-30 16 32.0

30-35 14 28.0

>35 6 12.0

Total 50 100.0

Opinion No. of respondents Percentage (%)




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Inference

The above table shows that 28% of the respondents completed secondary. 26% of the

respondents completed Diploma. 36% of the respondents completed UG and remaining 10% of

the respondents completed PG.

Table 1.3: Gender

Inference

The above table shows that 62% of the respondents are male and 38% of the respondents

are female.

Table 1.4: Marital Status


Married 25 50.0

Unmarried 25 50.0

Total 50 100.0

Inference

The above table shows that 50% of the respondents are married and 50% of the respondents

are unmarried.

Table 1.5: Awareness of Training Programme


Yes 48 96.0

No 2 4.0

Total 50 100.0

Inference

The above table shows that 96% of the employees are aware of the training programme and

4% of the employees are not aware.

Table 1.6: Attended Training Programme

Secondary 14 28.0

Diploma 13 26.0

UG 18 36.0

PG 5 10.0

Total 50 100.0


Male 31 62.0

Female 19 38.0

Total 50 100.0




90


Opinion No. of respondents Percentage

(%)

Yes 48 96.0

No 2 4.0

Total 50 100.0

Inference

The above table shows that 96% of the employees have attended training programme and

4% of the employees have not attended.

Table 1.7: Nature of Training Programme


Mostly related to work 36 72.0

General 13 26.0

Not related to work 1 2.0

Total 50 100.0

Inference

The above table shows that 72% of the employees find the training programme mostly

related to their work.26% of employees find it in general and 2% find it not related to work

Table 1.8: Undertake Training Programmes In Future


Yes 43 86.0

No 7 14.0

Total 50 100.0

Inference

The above table shows that 86% of the employees are willing to undertake training

programme in future and 14% of the employees are not willing to undertake.

Table 1.9: Quality of Training Programme


Excellent 20 40.0

Good 30 60.0

Total 50 100.0

Inference

The above table shows that 40% of the respondents find the quality of the training

programme to be excellent and 60% of the respondents find it good.

Table 1.10: Technical Skills




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Agree 39 78.0

Neither agree nor disagree 8 16.0

Disagree 3 6.0

Total 50 100.0

Inference

The above table shows that 78% of the employees agree that training programme helps

them to pick up new technical skills.16% of the employees neither agree nor disagree and 6% of

the employees disagree.

Table 1.11: Leadership Skills


Agree 35 70.0

Neither agree nor disagree 12 24.0

Disagree 3 6.0

Total 50 100.0

Inference

The above table shows that 70% of the respondents agree that attending training

programme helps them to pick up leadership skills, 24% of the respondents neither agree nor

disagree and 6% of the respondents disagree.

Table 1.12: Soft Skills


Agree 39 78.0

Neither Agree nor Disagree 8 16.0

Disagree 3 6.0

Total 50 100.0

Inference


programme helps them to pick up soft skills, 16% of the respondents neither agree nor disagree

and 6% of the respondents disagree.

Table 1.13: Better Performance




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Agree 36 72.0


Disagree 3 6.0

Total 50 100.0

Inference

The above table shows that 72% of the employees feel that attending training programme

leads them to perform better at work.22% of the employees neither agree nor disagree and 6%

of the employees disagree.

Table 1.14: Customer Service Skills


Agree 28 56.0


Disagree 5 10.0

Total 50 100.0

Inference


programme helps them to pick up customer service skills, 34% of the respondents neither agree

nor disagree and 10% of the respondents disagree

Table 1.15: Chances of Promotion


Agree 31 62.0


Disagree 7 14.0

Total 50 100.0

Inference

The above table shows that 62% of employees agree that attending training programme

leads them to the chances of promotion.24% of the employees neither agree nor disagree and

14% of the employees disagree with it.

Table 1.16: Relevance of Topics in Training Programme




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Opinion No.of Respondents Percentage (%)

Yes 44 88.0

No 6 12.0

Total 50 100.0

Inference

The above table shows that 88% of the employees find the topics relevant to the training

programme and 12% of the employees don’t find it relevant.

Table 1.17: Topics Covered In Training Programme


Agree 34 68.0


Disagree 3 6.0

Total 50 100.0

Inference

The above table shows 68% of the respondents agree that relevant topics related to

programme objectives were covered in the training programme,26% of the respondents neither

agree nor disagree and 3% of the employees disagree.

Table 1.18: Topics Covered Within Right Time


yes 44 88.0

no 6 12.0

Total 50 100.0

Inference

The above table shows that 88% of the respondents accept that the topics taken for the

training programme are covered within the right time and 12% of the respondents don’t accept

with it.

Table 1.19: Topics Covered Easy To Understand

Opinion No. Of Respondents Percentage (%)




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Yes 44 88.0

No 6 12.0

Total 50 100.0

Inference

The above table shows that 88% accept that the topics covered in training programme are

easy to understand and 12% of the respondents don’t accept with it.

Table 1.20: Satisfactory Level


Very Satisfied 20 40.0

Satisfied 21 42.0

Neither Satisfied Nor

Unsatisfied 9 18.0

Total 50 100.0

Inference

The above table shows that 40% of the employees are very satisfied with training

programme.42% of the employees are satisfied and 18% of the employees are neither satisfied

nor dissatisfied.

Table 1.21: Suggestions on Improvements

Opinion No. Of Respondents Percentage (%)

No Improvements Needed 28 56.0

Make The Content More

Relevant 3 6.0

Shorten The Training

Programme 13 26.0

Lengthen The Training

Programme 6 12.0

Total 50 100.0

Inference

The above table shows the suggestions on improvement where 56% of the employees feel

no improvement is needed.6% of the employees suggest on making the content more




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relevan.26% of the employees suggest to shorten the period of training programme and 12% of

the employees suggest to lengthen the period of training programme

Analysis Of Opinion Of Respondents Regarding

Quality of Topics Covered And Satisfactory Level Of Employees

[Using Chi Square]

Table 1.22: Quality Of Topics Covered * Satisfactory Level Cross Tabulation

Observed Count

Quality of Topics Covered * Satisfactory Level Cross Tabulation

Expected Count

Opinion

Satisfactory Level

Total

Very

Satisfied Satisfied

Neither

Satisfied

Nor

Unsatisfied

Quality of

Topics

Covered

Excellent 7.2 7.6 3.2 18.0

Good 12.8 13.4 5.8 32.0

Total 20.0 21.0 9.0 50.0

Null Hypothesis:

Ho: There is no association between quality of topics covered and satisfactory level of the

employees.

Alternate Hypothesis:

H: There is association between quality of topics covered and satisfactory level of the

employees.

Opinion

Satisfactory Level

Total

Very

Satisfied Satisfied

Neither

Satisfied

Nor

Unsatisfied

Quality Of

Topics

Covered

Excellent 8 8 2 18

Good 12 13 7 32

Total 20 21 9 50




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Table 1.22.1: Computation of Chi-Square Test

S.NO (O) (E) (O-E) (O-E)2 (O-E)

2/E

1 8 7.2 0.8 0.64 0.0889

2 12 12.8 -0.8 0.64 0.05

3 8 7.6 0.4 0.16 0.0210

4 13 13.4 -0.4 0.16 0.0119

5 2 3.2 -1.2 1.44 0.45

6 7 5.8 1.2 1.44 0.2482

TOTAL

0.870

Calculated value=0.870

Degrees of freedom=(R-1)(C-1)= (3-1)(4-1)

=6

Level of Significance= 5%

Tabulated value=0.920

Calculated value=0.870

The calculated value is less than tabulated value. Null hypothesis is accepted

Inference

There is no association between quality of topics covered in Training Programme and

satisfactory level of the employees.

Analysis of Opinion Of Respondents Regarding Awarness Of Training Programme And Undertake

Training Programme In Future

[Using Rank Correlation]

Table 1.23

Opinion Yes No

Awareness Of Training

Programme (X)

48 2

Undertake Training

Programme In Future (Y)

43 7




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Table 1.23.1

X

Y

(xi-yi)2

1 1 0

2 2 0

r = 1- 6di2

n(n2-1)

=1- 6(0)

2(22-

1)

=1-0/2(4-1)

=1- 0/6

=1

Inference

Awareness of training programme and undertake training programme in future are

positively correlated.

Findings of Study

The data collected were analysed carefully and the following findings were drawn.

From the study it is inferred that all the respondents are educated and 96% of the employees are

aware of the Training Programme and have attended the training programme conducted at their

organization:

72% of the employees find the Training Programme related to their work.78% of the

employees agree that attending Training Programme has helped them to pick up new

Technical skills and soft skills.

Most of the employees find the quality of the training programme to be excellent. 72% of

the employees feel that attending training programme leads them to perform better at work.

88% of the employees find the topics relevant to the training programme and they also find

the topics covered during the Training Programme are easy to understand.

88% of the respondents accept that the topics taken for the training programme are covered

within the right time It is also inferred that the quality of the topics covered reflects high

level of satisfaction among the employees at the organization




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According to the study majority of the employees who are aware of the Training

Programme conducted in their organization have shown their willingness to attend the

Training Programme in future.

4. Recommendations

Decentralization of training will make the training convenient for employee.

Managers who are at high levels are trained in restricted numbers of training centres which are

located in few states of India that makes training inconvinient for employees living far off

regions.

To update employee’s knowledge and skill suitable training must be provided at regular

intervals i.e. in a year or as per the requirement to keep the employees updated.

Training and development should also include more of upgrading their social behavior as

they connect to various clients belonging to various social backgrounds of society. As they

need to intermingle with different colleagues during transfers and delegations.

All the banks whether private or public should share their training and learning

techniques as a separate body it should provide standardized and uniform training so that young

people will not get tangled up in ``different bank different training’’ strategy.

5. Conclusion

It is concluded that private and public indian banks undertake training and

development programmes for their employees to increase their efficiency.

Banks provide training programmes to enhance their knowledge and skills to satisfy the

customers.

Growth of banking sector in india is the result of skilled manpower which is the outcome of

training and development.

References

Books

Nakkiran S. and Karthikeyan M.(2007) Training techniques for management development,

Deep and deep publications pvt ltd, New Delhi.

Anthony Landale (2004) Training and Development A complete handbook, Gower publishing

ltd, U.K.

G. Pandu Naik;(2007) Training and development text research and cases, Excel books, New

Delhi.

Drucker, P. (1999). "Knowledge-Worker productivity: the biggest challenge."

California Management Review 41(2): 79-94.

V S Rama Rao on December 27, 2010, Need for training, at

http://www.citeman.com/13010-need-for-training.html#ixzz1bOCZip

http://www.citeman.com/13010-need-for-training.html#ixzz1bOCZip




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Janice A. Miller, SPHR and Diana M. Osinski, SPHR, Training Needs Assessment, February

1996 Reviewed July 2002.

Journals

Vaishali Nagar (Oct-Dec2009), “The Indian journal of commerce, The Indian commerce

association”, New Delhi.

Source Electronic

Mario Harsh,2007,pathway out of poverty, rural employment http://www.fao-

ilo.org/fileadmin/user-uploan/fao-ilo/pdf/papers/25-march/Hartl-

formatted.01.pdr(28/8/2011).

Venkatesh J.;2009,``Final report on management thesis, a study on training and

development practices in ICICI bank, http://www.scribd.com/doc/244102161J (29/8/2011).

Documents

A Study on Effectiveness of Training in Indian Banks