An Evaluation of the Impact of Training and Development on Organisational Performance: A Case Study of the Gauteng Provincial Department of Economic Development

DOI: 10.4236/jhrss.2020.81004   PDF   HTML   XML   236 Downloads   555 Views  

Abstract

Orientation: Organisations relies on the expertise, standard, competence and performance of its employees for it to offer effectual service delivery. However, the framework and administration of Training and Development has not advanced in parallel to the new and ever changing business needs. Research purpose: The purpose of this study is to evaluate the impact of Training and Development on organisational performance using a case study, literature review and statistics of the Department of Economic Development in the Gauteng Province. Motivation for the study: The motivation of this study is that the South African government department spends millions of Rand’s on Training and Development of its workforce, however, these departments continue to perform poorly. Research approach/design and method: This study used a descriptive quantitative research design. Data analysis employed descriptive statistics and inferential statistics and the sample included 131 employees. Main findings: The main findings of the study are that Training and Development has a positive impact on the performance of the employees in the department. The department provides Training and Development programmes that are not relevant to the tasks of employees. Training evaluation is the most ignored step in the training process and the department does not have a tool to measure the impact of training and development. Practical/managerial implications: The study proposed that the department should adopt Kirkpatrick’s model for evaluating training programmes and skills and knowledge learned from training should be considered. Contribution/value-add: This study will bring new scientific knowledge of the impact of Training and Development on organisational performance within the Gauteng Provincial Department of Economic Development.

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Mdhlalose, D. (2020) An Evaluation of the Impact of Training and Development on Organisational Performance: A Case Study of the Gauteng Provincial Department of Economic Development. Journal of Human Resource and Sustainability Studies, 8, 48-74. doi: 10.4236/jhrss.2020.81004.

1. Introduction

Since the beginning of democracy in 1994, the South African government has initiated different constitutional and legislative frameworks to make it possible for public-sector organisations to enhance their delivery of public goods and services (Mafini & Pooe, 2013: p. 2) . Regardless of these initiatives and solutions government takes, poor performance is still a challenge to deal with in the public-sector as government departments continue to fail to provide a service that is effective (Carrim, 2009; Nilsson, 2010; Van der Heijden & Mlandi, 2005) .

In the modern business world, “lifetime employability” replaces “lifetime employment”. Many employees’ careers stall or even stop at a lower level, a phenomenon known as, “career plateauing”. This is the Peter Principle, which states that in an organisation, the basis for development of evaluating the potential employee for an advancement is the employees’ present duties. An employee will get a promotion until he/she reaches his/her highest levels of incompetence. However, training can still be a part of any attempts at succession planning, and for such reasons employee attitude is critical.

Elnaga and Imran (2013: p. 138) mention that as training uplifts the production of employees; most governmental departments do not consider the significance of training. When the economy decelerates or revenues deteriorate, many of these organisations reduce their training financial budget. Consequently, Elnaga and Imran (2013: p. 138) further argue that this will lead to task turnover, which will result in higher costs of hiring new employees and lessen organisational lucrativeness.

1.1. Problem Statement

Green (2016: p. 339) states that provincial governments in South Africa are encountering a challenge of having to render effective services. Correspondingly, Gaffor and Cloete (2010) further emphasise that currently, requests for efficient and operative delivery of services in South Africa have augmented. In South Africa, public-sector organisations do not know how to evaluate training; in addition, the public-sector organisations do not have a tool to measure the impact of training and development (Public Service Commission (PSC), 2011: p. 20) . In South Africa, public-sector organisations do not know how to evaluate training; in addition, the public-sector organisations do not have a tool to measure the impact of training and development (PSC, 2011: p. 20) . In the public-sector, the examinations of skills development initiatives reveal that in the last two decades, a considerable portion of the public service employees has attended various training programmes with use of government funds for such training.

However, based on the studies reviewed, the Return-On-Investment (ROI) has normally been low concerning the impact of T & D on public service performance (Department of Public Service and Administration, DPSA, 2013; PSC, 2011; Public Service Sector Education and Training Authority (PSETA), 2014) . Similarly, Huluman (2011) dispute that in the public-sector private providers present most of the training programmes as short-term programmes. These have not uplifted employee’s skills including where the specific outcomes of the training are congruent with the required skills of the employee’s task. Thus, the main problem identified in this study is that there is a lack of knowledge of the impact of T & D on organisational performance within the Gauteng Provincial Department of Economic Development.

1.2. Aim of the Study

Kum et al. (2014: p. 72) are of the opinion that the South African public-sector organisations are encountering a period where there is a decrease in service delivery, which is a value proposition. This is because of restricted financing for human capital advancement and a mass migration of accessible skills, which has increased the severe skills deficiency in all sectors. Additionally, Nilsson (2010) states that it is hard for South African public-sector organisations to overcome the problem of poor performance in most of its departments. The framework and administration of Training and Development (T & D) has not advanced in parallel to the new business needs. As for such the aim of this study is to evaluate the impact of T & D on organisational performance within the Gauteng Provincial Department of Economic Development.

1.3. Objectives of the Study

The research objectives of this study are to:

• An analysis of the impact of T & D in attaining organisational performance at the Gauteng Provincial Department of Economic Development.

• An overview of the prevailing T & D trends and programmes within the Gauteng Provincial Department of Economic Development.

• To explore the extent to which the evaluation of training occurs in the organisation.

• Understand the relationship between employee performance and organisation performance.

1.4. Significance of the Study

Given the context provided in the preceding section the significance of this study is to contribute to the existing body of knowledge related to the impact of T & D on organisational performance.

The study will help to address possible problems regarding employee performance and improve the understanding of Human Resource Development (HRD) practices, which in turn will help organisations to evaluate T & D programmes that are articulated. These possible problems are providing poor services and absence of critical skills (Green, 2016: p. 339; Mafini & Pooe, 2013: p. 1) . In most of government departments, the alignment of T & D is not strategic and exposes most of the employees to training in areas different from their tasks (PSETA, 2016: p. 37) . Thus, this research will highlight the significance of aligning T & D programmes with organisational goals and strategies. It will also benefit the employees and the Gauteng Provincial Department of Economic Development as an organisation including other departments within the province and other departments in surrounding provinces.

2. Literature Review

2.1. Importance of HRD

The public service relies on the expertise, standard, competence and performance of its employees for it to offer effectual service delivery. The majority of public-sector employees are not qualified and lack the necessary skills to carry out their tasks effectively (DPSA, 2013; PSETA, 2014) .

HRD is defined as structured knowledge that organisations offer in a certain period that results in improved performance, personal growth, and enrichment of subordinates’ employability, to gratify the present and upcoming organisation needs (Coetzee et al., 2009: p. 399) . It plays a vital role in the organisation performance through assisting the organisation to unite its employees in order to accomplish the strategic aims and objectives of the organisation (Ugoji & Mordi, 2014: p. 14) . Thus, HRD, T & D is important as it advances the performance of employees through learning.

2.2. Impact of Training and Development on Organisational Performance

Scholars and practitioners alike (Jain & Moreno; 2015: p. 15; Meyer et al., 2016; Moullin, 2016; Niazi, 2011; Ongori & Nzonzo, 2011) in recent years have increasingly recognised the impact of T & D on organisational performance. Ongori and Nzonzo (2011: p. 187) emphasise that T & D guarantees that the organisation has operative employees to encounter the challenges of its vigorous market. The process of T & D embraces a wide assortment of knowledge activities, and enhances an organisation strategy, thus converting it into a learning organisation (Niazi, 2011: p. 45) .

Jain and Moreno (2015: p. 15) emphasise that in a learning organisation, employees recurrently expand their capabilities in order to achieve the outcomes demanded. Scholars such as Moullin (2016) and Meyer et al. (2016) have worked on T & D globally and nationally, however, a study on An evaluation of the Impact of Training and Development on Organisational Performance: A Case Study of the Gauteng Provincial Department of Economic Development has never been carried before.

In regard to government departments, the concept of T & D is not new, and contemporary T & D matters and organisational performance have attracted various scholars (Gaffor & Cloete, 2010; Green, 2016; Mafini & Pooe, 2013; Mpofu & Hlatwayo, 2015; Nkosi, 2015; Tshilongamulenzhe, 2012) . The failure of an organisation to accomplish its objectives with current capabilities results in skills gap, and thus HRD is one of the key solutions to those identified skills gaps (Memon, 2014: p. 28) .

2.3. Effect of Training on a Learning Organisation

Anlesinya et al. (2015) would argue that T & D does not continuously result in enhanced performance. The scholarly work of Anlesinya et al. (2015) shows that there is a significant negative correlation between development and organisational performance. Thus, employees’ development has a significant negative impact on organisational performance (Anlesinya et al., 2015) . Many other leading scholars support this view, while others offer a different view.

Research by Mpofu and Hlatywayo (2015) revealed that quality T & D programmes are imperative for better employee performance within the organisation. The same study established that the standard of employee T & D programmes within the municipality was high (confirmed by 53.33% of the employees). The findings of the study also disclosed that quality T & D programmes and highly qualified facilitators result in quality employee T & D that enhances employee performance and improves service delivery.

Amare (2014) revealed that the public-sector organisations have T & D programmes; however, they were incapable of appraising training needs, setting performance objectives, investigating support for internal and external T & D, arranging training strategies, and formulating schedules and modules for training also including T & D efforts. The study also found that employees did not receive feedback after training evaluation to improve performance. In support of Amare’s (2014) findings, Imran and Tanveer (2015: p. 25) argue that an organisation may succeed in applying a training programme even though it fails to include all steps in a T & D process. Thus, the organisation will not acquire the full benefit of training that has a long-lasting effect on both employee performance and the organisation as a whole.

Even though Anlesinya et al. (2015) and Mpofu and Hlatywayo (2015) tend to agree that training does have a positive impact on the performance of employees, Long et al. (2016: p. 476) argued that many of these scholarly works depend on small sample size surveys. In addition, the preceding researchers have seldom linked their studies to training initiatives costs. In support of Long et al. (2016) , Tharenou et al. (2007) further argue that empirical studies on the impact of training on organisational performance were conducted through the utilisation of self-data and indistinct causative links back to the training activities.

2.4. Training Evaluation

Many organisations do not evaluate their training undertakings and those who do, repeatedly evaluate training inadequately (Meyer et al., 2007: p. 4; Swanepoel et al., 2014: p. 595) . Moreover, Niazi (2011: p. 45) claim inadequate significance given to evaluation of training in comparison to planning and implementation. Additionally, Swanepoel et al. (2014: p. 595) state that the reasons for this is a general assumption that training will eventually have a positive result.

Arguably, evaluation of training is the utmost misleading stage in training practice. In the public-sector organisations face numerous obstacles and as such, the unwieldy governmental assembly, and structures worsen the training evaluation stage (Rajasekar & Khan, 2013: p. 45) . Public-sector organisations are complex and this has created various issues that impede measuring of ROI (Return-On-Investment) in the public-sector. Kirkpatrick and Kirkpatrick (2006: p. 17) provide the following three fundamental reasons why organisations must evaluate training:

• Validate the contributions of training to the organisation’s objectives and goals;

• Choose whether to prolong or terminate a training programme; and

• Attain figures on how to improve subsequent training programmes.

Table 1 illustrates Kirkpatrick model for evaluating training. Erasmus et al. (2009: p. 220) point out that using the ROI to evaluate the training programmes allows HRD practitioners to supply senior management with proof regarding the financial outcomes obtained from investing in training. Meyer et al. (2007: p. 4) claim that organisations disregard the measurement of T & D exertions, thus, the evaluation of training programmes is becoming more significant ever than before.

In general, the evaluation of T & D has become a problem that organisations encounter daily. A major contributing factor to this problem is that trainers do not possess the necessary skills to evaluate training and development (Erasmus et al., 2009) . Sachdeva (2014: p. 219) argues that employees’ attendance of training programmes will not automatically result in a positive outcome, as other training programmes can have a negative impact. Thus, this has raised a question about the significance of evaluating training programmes.

Table 1. Levels of post-instructional evaluation.

Source: Erasmus et al. (2009: p. 219) .

2.5. Human Resource Development Challenges in the Public-Sector

Public employee’s performance, including the capability of departments to supply efficient service are both imperative to the government agenda for transformation and development. Mayfield and Mayfield (2002), as cited by Mafini and Pooe (2013: p. 1) argued that environment in which South African organisations operate is characterised by macro factors such as globalisation, absence of critical skills, challenging stakeholders, diverse labour force, and technological innovations. Table 2 depicts the key challenges facing HRD in the South African public-sector.

The public service encounters challenges in training and transforming its employees in a way that not only benefits government in its mission to offer efficient service delivery, but also will endow employees greatly (Human Resource Development- Strategy (HRD-Strategy) for the Public Service, (2002) as cited by Du Toit Goussard (2008) . In the public service, HRD is weak in such a way that it is incomplete and isolated (Human Resource Development (HRD) for the Public Service, 2015: p. 48) .

Yee et al. (2008) suggest that due to these challenges experienced by the public-sector organisations, public-sector organisations need to come up with a strategy to advance performance. The HRD-Strategy implementation intends to reinforce a complete approach to human capital T & D within the public service (Coetzee et al., 2009: p. 301) . Furthermore, Van der Westhuizen et al. (2013: p. 317) assert that most public-sector organisations have training mechanisms that are responsible for organising training interventions. In order for HRD-Strategy in the public-sector to accomplish its objectives, the government instigated a policy framework that will observe HRD-Strategy (PSC, 2011) .

2.6. Administration of Human Resource Development

Meyer et al. (2007: p. 5) mention that the administration of HRD trends in South Africa is through various training legislation and national HRD needs. According to McGrath et al. (2004) , T & D remains a big challenge to most organisations in

Table 2. Challenges facing HRD in the South African public-sector.

Source: Du Toit Goussard (2008: p. 102) .

South Africa. Because of this reason, South African public-sector organisations anticipate an appropriate skills development. In addition, Rasool and Botha (2011) argue that regardless of education and training policy adjustments in South Africa, the country continues to experience skills shortages.

The cause of this is that the execution of policies is poor and this results in fruitless expenditure (Actuarial Society of South Africa (ASSA), 2008; Ellis, 2008) . In support of the above argument, in developing countries, most training programmes have miscarried in accomplishing the projected outcomes because of their incapability to project a training programme with explicit intentions (Al-Nuseirat & Biygautane, 2014: p. 2) .

Line managers in public-sector organisations do not understand the Performance Management and Development System (PMDS) as a tool to develop employees to perform according to the agreed or desired performance (Coetzee et al., 2007: p. 81; Moullin, 2016: p. 442; Nel et al., 2008: p. 505) . Line managers do not discuss Personal Development Plans (PDP’s) with employees and do not see T & D of employees as important, and think that T & D is the responsibility of the HRD unit (HRD for the Public Service, 2015: p. 11) . Thus, significance and precedence within the organisation given to HRD inventiveness normally ranks low. This is because various senior managers allegedly obstruct the resourcefulness of HRD, and particularly managers do not consider their HRD accountabilities seriously. Furthermore, Swanepoel et al. (2013: p. 316) are of the view that in the public-sector, it has become a challenge to address the development needs of employees individually because of the size of the public service.

The quality of Workplace Skills Plan (WSP) information continues to be of a low standard, and many departments still cannot comply with the requirements of a WSP (PSETA, 2014: p. 47) . Such WSP’s created through the collection of Performance Development Plans (PDPs) of employees are in line with the individually diagnosed training needs and not an appropriate skills examination (PSC, 2011: p. 15) . Workplace Skills Plan carry inaccurate skills and T & D needs that are required to accomplish the goals of public-sector organisations (PSC, 2011: p. 14; PSETA, 2014: p. 37) . The skills and knowledge employees possess have an impact on performance of the organisation; therefore, it is imperative to understand the relationship between employees and organisation performance.

2.7. Relationship between Employees’ Performance and Organisational Performance

Various scholars possess different perceptions in regards to employee performance and organisational performance. For example, Quartey (2012) and Sohail, et al. (2014) viewed organisational functioning in terms of employee performance. However, Almatrooshi et al. (2016) and Ubeda-Garcia et al. (2013) completely perceived performance as an organisational functioning. The primary aim of any organisation is to enhance its performance, but this is impossible to achieve without productive training of employees (Oladimeji & Olanrewaju, 2016: p. 110; Ramya, 2016: p. 697) .

Oladimeji and Olanrewaju, (2016: p. 110) state that this demonstrates the significance of the relationship between training, employees’ performance and organisational performance. Divyaranjani and Rajasekar (2013: p. 53) emphasise that human resource capital plays a significant role in the growth and performance of the organisation, because the survival of the organisation relies more on the performance of its workforce. However, Mozael, (2015: p. 40) argues that there is a robust correlation between employee performance and organisational performance, while improved employee performance results in better overall organisational performance. For such reasons, employee performance becomes a task of organisational performance.

A study by Shaheen et al. (2013: p. 496) uncovered a positive correlation between organisational performance and training of employees; employee performance and employee performance training; and organisational performance and employee performance. The author’s standpoint is an opposed one, with authors and scholars alike disputing their claim and argument. Ramya (2016: p. 697) argue that training results in increased profitability while nurturing constructive approaches with regard to profit co-ordination. Long et al. (2016: p. 478) in support of Ramya (2016: p. 697) argue further that the more organisations offer T & D programmes the more sales and productivity increase leading to a higher future value of the organisation. Nwokeiwu (2013: p. 294) state that there has been overemphasis on the impact of T & D on performance in the past. The scholarly work of Nwokeiwu (2013) found that training could only enhance both the performance of the employee as well as the organisation to an average extent. The findings of this study disagree with precedent studies, which found that the impact of T & D was either excessively high or low. Coetzee et al. (2013: p. 19) argue that training cannot be the answer to all low standard performance, but a coherent T & D programme can lessen such challenges.

2.8. Conclusion

The literature review found the following: The impact of T & D on the performance of employees as well as the organisation and it identified the extent of the evaluation of training occurrence in the organisation. The literature review found concurrence amongst various researchers that training does have a positive impact only if the organisation appraises training needs, sets performance objectives, investigates support for internal and external T & D, arranges training strategies, formulates schedules and modules for training and provides employees with feedback after training evaluation to improve performance.

3. Research Methodology

3.1. Research Design

This study used case study and statistics as this study is descriptive in nature and collected primary data by mean of a descriptive survey. This research employed descriptive research, because it will allow the researcher to be objective as possible (Leedy & Ormrod, 2014: p. 183) . It collected data describing the qualities of persons, events, or situations (Sekaran & Bougie, 2013: p. 97) . The study described the impact of T & D on organisational performance in the literature review. This study used a case study of the Department of Economic Development in the Gauteng province.

3.2. Rationale for the Selection of Quantitative Research Approach

This study used a quantitative method to understand the research participant’s experiences about the impact of T & D on organisational performance within the Gauteng Provincial Department of Economic Development.

3.3. Sample Size

Welman and Kruger (2001: p. 47) state that probability sampling incorporates any member of the population in the sample equally. Probability sampling authorises the researcher to identify the degree to which the sample results deviate from the standards of the population. The researcher will thus be able to measure the sampling error (Welman & Kruger, 2001: p. 47) . The study used simple random sampling because there is equal chance of selecting participants as stated by Welman and Kruger (2001: p. 47) .

Yamane’s (1967) formula enabled collection of the sample:

n = N 1 + N ( e ) 2

where:

n = the sample size

N = the study population

e = the level of precision

1 = designates the probability of the event occurring

Therefore:

n = N 1 + N ( e ) 2 = 250 1 + 250 ( 0.06 ) 2 = 131

The study thus gathered questionnaire data from 131 respondents.

The investigator distributed 131 questionnaires and all participants participated.

As depicted in Table 3, this research achieved the target sample. This study obtained a representative of 100% response rate. As previously noted Long et al. (2016: p. 476) criticised the use of small samples and the lack of linkage of such studies with training initiative costs. While the assertion is a strong one, it fails due to a lack of objectivity, furthermore there is no evidence suggesting the ineffectiveness of small sample research.

Table 3. Response rate.

3.4. Questionnaire Construction

This study used a survey as its research strategy. In this study, a structured questionnaire with closed-ended questions was used in a form of a Likert Scale ranging from 1 to 5-point scale (strongly agree to strongly disagree) to collect the required data. The questionnaire used consisted of two parts which were Section A Demographic Information and Section B - E Questions see Appendix B and C.

Section A: Demographic Information

Demographic Information comprises the following sub-sections

• Respondents’ age

• Respondents’ gender

• Respondents’ years of experience in general

• Respondents’ years of experience on current position

• Respondents’ highest qualification

• Respondent position

Section B: Impact of T & D on organisational performance.

Section C: Prevailing training and development trends and programmes in the organisation

Section D: Evaluation of training and development occurrence in the organisation.

Section E: Relationship between employee and organisation performance.

The structured questionnaire contained 23 questions with each section divided into four categories, and made use of only close-ended questions.

Questionnaire categories

• Impact of training and development on organisational performance (contains 6 questions)

• Prevailing training and development trends and programmes in the organisation (contains 6 questions)

• Evaluation of training and development occurrence in the organisation (contains 6 questions)

• Relationship between employee performance and organisation performance (contains 5 questions)

This study collected primary data from participants, which consisted employees from all levels, management and non-management employees. It collected secondary data from T & D journals, books, dictionaries, organisation reports, government publications and theses. The researcher used fixed-response interviews (through a structured questionnaire) were face-to-face interviews were carried. A face-to-face survey was employed in this study because of the following reasons (Doyle, 2017: p. 1; Saunders et al., 2009: p. 322) :

• Interviewer can assist participants to comprehend the questions, to mitigate bias the researcher only explained the questions to the participants and left the participants answer the questionnaire on their own;

• The researcher requested participants to base their answers on their work experiences.

• Consents researchers a great level of regulator of data collection course.

3.5. Pilot Study

The researcher selected ten participants within the organisation that had attended numerous T & D programmes, for the pilot study to detect questionnaire problems that comprised the context, questions, wording and layout. The respondents completed the questionnaire and provided comments and/or suggestions about the questionnaire, questions, context, and layout. For example, the participants requested the researcher to change the following:

• Gauteng Economic Development was changed to Gauteng Provincial Department of Economic Development;

• Numbering in the Likert Scale was removed and only strongly agree to strongly disagree appeared in the questionnaire;

• Regarding the position respondents held, the researcher changed the actual job of an employee to either manager or administration.

Saunders et al. (2016: p. 714) state that Cronbach’s Alpha reliability coefficients of 0.70 or higher means that the questionnaire items measure similar components. Thus, the value of 0.70 above is acceptable. See Table 4 for results of the questionnaire reliability.

The scale is reliable because Cronbach’s alpha is >0.7 (α = 0.823, N = 21).

3.6. Data Analysis

Data analysis employed descriptive statistics and inferential statistics. Data examination was via quantitative numerical descriptive techniques namely; frequency tables, percentages, standard deviations and means through use of the International Business Machines (IBM) Statistical Package for the Social Sciences (SPSS) 24 computer software. This study will follow Factor analysis which will determine correlations between variables. The researcher drew, discussed and interpreted significant conclusions, recommendations and the implications of the findings.

Table 4. Questionnaire reliability.

3.7. Ethical considerations

• The researcher was honest with participants about the nature of the study.

• The researcher correctly informed prospective interviewees about the research aim and method and the nature of the study conducted.

• Participants were aware of their right to withdraw from this study even if they were half way through without implications for them.

• That their participation was voluntarily, and a guarantee given against the sharing of their anonymous responses.

• Participation in the research harmed no one.

• The Human Capital Management: Chief Director of the Gauteng Provincial Department of Economic Development granted permission for the study.

• Participants have the intellectual capacity and psychological maturity necessary to understand their involvement in the study.

4. Results

Statistical analysis

Normality

The Kolmogorov-Smirnov and Shapiro-Wilk tests are significant at p < 0.0001. This value is less than p < 0.001 and means that the data were not normally distributed. Non-parametric tests helped answer research questions.

Factor analysis was performed which determined correlations between variables. The analysis applied the non-parametric Kruskal-Wallis K-sample and Mann-Whitney U tests. The Kolmogorov-Smirnov and Shapiro-Wilk tests are significant at p < 0.0001. This value is less than p < 0.001 and means that the data were not normally distributed. Non-parametric tests helped answer research questions.

Testing for statistical significance relationships and differences

Thus, this study applied non-parametric tests that is Kruskal-Wallis and Mann-Whitney U tests.

Kruskal-Wallis/Crosstabs

There is a significant difference in respondent’s highest qualification, and the organisation having good evaluation criteria for evaluating training (H (7) = 14.845, p = 0.038).

The difference lies between:

Certificate and Diploma (χ2(1) = 6.860, p = 0.009)

Diploma and Undergraduate Degree (χ2(1) = 4.941, p = 0.026)

Diploma and Honours (χ2(1) = 4.278, p = 0.039)

Diploma and Masters (χ2(1) = 6.531, p = 0.011)

There is a significant difference in respondent’s highest qualification, and the organisation utilising a tool to measure the impact of training and development (H(7) = 18.934, p = 0.008).

The difference lies between:

Certificate and Diploma (χ2(1) = 4.631, p = 0.031).

Diploma and Undergraduate Degree (χ2(1) = 10.884, p = 0.001).

Diploma and Honours (χ2(1) = 11.146, p = 0.001).

Diploma and Masters (χ2(1) = 5.783, p = 0.016).

Mann-Whitney

There is a significant difference in respondent’s gender, and training acquired improving their performance (U = 1686.000, p = 0.041).

There is a significant difference in respondents Position Discipline/Unit, and T & D of employees has improved the department’s performance (U = 1559.000, p = 0.013).

Pearson correlations

This section presents the Pearson correlations between the research variables.

Table 5 shows that there is a significant, moderate, positive correlation between training enabling them to improve their skills knowledge, and T & D stabilising the organisation (r = 0.419, N = 131, p < 0.001).

Table 6 shows that there is a significant, moderate, positive correlation between training enabling them to improve their capability, and T & D stabilising the organisation (r = 0.468, N = 131, p < 0.001).

Table 7 shows that there is a significant, moderate, positive correlation between the organisation putting in place detailed development programmes aimed at improving employee performance, and the organisation having good evaluation criteria for evaluating training (r = 0.512, N = 131, p < 0.001).

Table 8 shows that there is a significant, moderate, positive correlation between training acquired improving employee’s performance, and T & D having an impact on the overall performance of staff within the department (r = 0.472, N = 131, p < 0.001).

Table 5. Pearson correlation A.

**. Correlation is significant at the 0.01 level (2-tailed).

Table 6. Pearson correlation B.

**. Correlation is significant at the 0.01 level (2-tailed).

Table 9 shows that there is a significant, moderate, positive correlation between the training they have received helping them to enhance quality of product/service, and T & D of employees improving the department’s performance (r = 0.464, N = 131, p < 0.001).

Table 10 shows that there is a significant, moderate, positive correlation between the organisation conducting extensive training programmes for its employees in all aspects of quality and the organisation setting up a committee that assesses and evaluates training needs (r = 0.442, N = 131, p < 0.001).

Table 7. Pearson correlation C.

**. Correlation is significant at the 0.01 level (2-tailed).

Table 8. Pearson correlation D.

**. Correlation is significant at the 0.01 level (2-tailed).

Table 9. Pearson correlation E.

**. Correlation is significant at the 0.01 level (2-tailed).

Table 10. Pearson correlation F.

**. Correlation is significant at the 0.01 level (2-tailed).

5. Discussion and Interpretation of Findings

Findings from the study

The aim of this study was to evaluate the impact of T & D on organisational performance in the Gauteng Provincial Department of Economic Development. See the findings of this study discussed hereunder.

Findings from the Primary Research

The following section presents the findings from the primary research.

What is the impact of training and development on attaining organisational performance?

This study found that employee’ performance increases after completing a training programme. This study found that training enables employees to improve their skills knowledge and capability so that they can perform their tasks more efficiently. This study also revealed that the training employees have received has helped them to improve quality of products/services they provide. The study revealed that attending a training programme exposes employees to much career development. The study further found that T & D has a positive impact on the overall performance of the workforce within the department. This confirms that there is a significant relationship between employees’ performance and the department performance.

What are the prevailing training and development trends and programmes within the organisation?

This study found that the majority of the respondents agreed that the organisation conducts extensive training programmes for its employees in all aspects of quality. The requirements of either the task or the employee deficiency of their ability on the task determines training programmes design. This study found that employees have regularly participated in T & D programmes within the organisation. This proves that the department is a learning organisation. This study also found that a majority of employees that have regularly participated in T & D programmes in the organisation perform better.

This study found that there is an inadequate alignment of T & D strategy in the organisation with the organisation business strategy. There are a high number of managers and human resources showing full willingness to help employees apply what they have learned in training programmes.

What is the extent of the evaluation of training occurrence in the organisation?

This study found that the organisation has set up a committee that assesses and evaluates training. This means the committee is not doing its job. Their job should be to assess and evaluate training programmes. This study found a lack of evaluation of training programmes throughout their duration. The organisation does not have a good evaluation criterion for evaluating training. From the primary finding and the literature review, this study confirms that the department will continue to suffer the results of poor performance.

The organisation does not have a tool that it utilises to measure the impact of T & D programmes. As a result, employees were not satisfied with the PMDS tools used for measuring their level of performance after attending a training programme. Thus, this leads to the organisation not interpreting the evaluation of results and feedback.

What is the relationship between employee performance and organisational performance?

This study found that a majority of the respondents agreed that a link exists between the training programmes the organisation provides and the strategies of the organisation. In the current situation, this study confirms that this department continue to perform poorly, and this is because of not linking T & D programmes with the department’s goals.

This study found that T & D programmes stabilise the organisation. This study also revealed that the organisation has put in place detailed development programmes aimed at improving the performance of employees. This study revealed that the training employees have acquired during the training sessions has improved the employees’ performance. As a result, T & D of employees has improved the department’s performance.

Research Limitations

The study was limited to a single department (Gauteng Provincial Department of Economic Development) it was not easy to make inferences about the processes and challenges of T & D in other public departments. The respondents’ unwillingness to respond honestly was constraining in this study and this could result in distorted information. The researcher could not reach targeted respondents who had left the organisation by the time the study was undertaken.

6. Recommendations

A comprehensive review of the applicable literature and findings from the primary research as well a thorough critical rationalism creates a foundation for recommendations made below:

• Implementation of T & D programmes: The department should implement T & D programmes strategically through appraising training needs, setting performance objectives, investigating support for internal and external T & D, arranging training strategies, and formulating schedules and modules for training, also including T & D efforts.

• Continuous training programmes: The department should provide continuous T & D programmes that are core and train its current employees and new employees to acquire new knowledge and skills.

• Training evaluation tool: The department must adopt Kirkpatrick’s model for evaluating training and should provide its employees with feedback.

• Stakeholder engagement in training and development programmes: The HRD unit should ensure that line managers do understand PMDS, discuss PDPs with employees, consider the T & D of employees important, and that T & D is their responsibility.

• Enhancements of training and development: The department should recognise skills and knowledge learned from training. It should allow employees to apply newly learned skills and knowledge through career development.

Further research

This study proposes that further studies could apply a qualitative method or both the qualitative and quantitative method to determine the impact of T & D on organisational performance. Through a qualitative method, the researcher will be able to gather data using in-depth interviews, which will provide more data than questionnaires. A comparative study of both public and private sector organisations can investigate the impact of T & D on organisational performance. A study can determine the impact of T & D in the performance of senior managers.

Appendix A: Letter of Permission to Conduct Study

Appendix B: Covering Letter

Survey covering letter

Management College of Southern Africa (MANCOSA)

Dear Respondents

I would like to express my deepest appreciation for your generous time, honest and prompt responses.

Objective

This questionnaire gathers data about the impact of training and development on organisational performance in the Gauteng Provincial Department of Economic Development. This information constitutes the primary data in my MBA study at MANCOSA Graduate School of Business.

The aim of this study is to examine the impact of training and development on organisational performance within Gauteng Provincial Department of Economic Development, and to elicit the opinion of the employees about the training and development programmes provided by the department.

The data you provide would be of great value for the success of this research. I confirm to you that all the data has academic purposes and is analysed anonymously through the authorisation of the university. No harm will accrue to respondents because of the information you provide.

General Instructions

• No need of writing your name

• In all cases where answer options are available please cross (X) or tick (√) in the box provided

• For scale typed questions please cross (X) or tick (√) your preferred level of agreement

Appendix C: Survey Questionnaire

Survey Questionnaire

This research survey forms part of research project on the evaluation of the impact of training and development on organisational performance within the Gauteng Provincial Department of Economic Development.

Questionnaire instructions:

• Please complete ALL questions as best you can. The survey should not take you more than 15 minutes. There are no right or wrong answers.

• Base your answers on your personal experience.

• You have the right to withdraw from this study even if you are half way through and there won’t be any implications for doing so.

• Read instructions carefully.

• Demographic information is used for statistical purposes.

• All individual responses are anonymous and will be treated as confidential.

Section A: Demographic Information

Please make a cross (X) or tick (√) in the applicable box.

What is your age?

What is your gender?

How many years of experience do you have?

How many years of experience do you have in your current position?

What is your highest qualification?

Discipline/Unit: Gauteng Department Economic Development

Section B: Impact of T & D on organisational performance.

Section C: Prevailing training and development trends and programmes in the organisation

Section D: Evaluation of T & D occurs in the organisation

Section E: Relationship between employee and organisation performance

Conflicts of Interest

The author declares no conflicts of interest regarding the publication of this paper.

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