ADOPTING MANAGEMENT TRAINEES STRATEGY IN

RAISING MANAGERS PERFORMANCE: THE CASE OF KCB

BANK, DAR ES SALAAM

1

ADOPTING MANAGEMENT TRAINEES STRATEGY IN

RAISING MANAGERS PERFORMANCE: THE CASE OF KCB

BANK, DAR ES SALAAM

By

Dennis Elias Mpepo

A Dissertation Submitted to in Partial Fulfillment of the Requirements for the

Award of the Degree of Master of Business Administration in Corporate

Management (MBA-CM) of Mzumbe University Dar es Salaam Campus

College

2013

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CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for acceptance

by Mzumbe University, a dissertation entitled Adopting Management Trainees

Strategy in Raising Managers Performance: The Case of KCB Bank, Dar Es

Salaam in partial fulfillment of the requirements for award of the degree of Master

of Business Administration (Corporate Management) of the Mzumbe University.

……………………………………..

Major Supervisor

………………………………….

Internal Examiner

………………………………

External Examiner

Accepted for the Board of MUDCC

__________________________________________

CHAIRPERSON, CAMPUS COLLEGE BOARD

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DECLARATION

I, Dennis Elias Mpepo, declare that this dissertation is my own original work and

that it has not been presented and will not be presented to any other University for a

similar or any other degree award.

Signature____________________________

Date________________________________

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COPYRIGHT

©

This dissertation is copyright material protected under the Berne Convention, the

Copyright and neighboring Rights and other international and national enactments, in

that behalf, on intellectual property (Cap 218 R.E 2002). It may not be reproduced

by any means, in full or in part, except for short extracts in fair dealings, for research

or private study, critical scholarly review or discourse with an acknowledgement,

without written permission of Mzumbe University, on behalf of the author.

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ACKNOWLEDGEMENT

In conducting this study, the researcher feels indebted for support given by the

following people without whom the workload could have been unbearable. First and

foremost, I would like to thank The Almighty God for giving me strength and health

in pursuing my studies for two years.

My sincere thanks are due to my Supervisor Maige Mwasimba whose guidance

enabled me to properly write this study. Also, I would like to thank all lecturers of

Mzumbe University who gave me knowledge concerning business administration

through the MBA program. Likewise, my appreciations are due to all the Staff of the

KCB Bank for their information support.

However, special thanks are extended to Bank Trainees and Bank Supervisors for

their untiring support and encouragement they gave me throughout data collection

period. Lastly, I would like to thank all my friends and everybody whom in one way

or another supported and encouraged me as well as for love they showed to me.

God bless you all.

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DEDICATION

This dissertation is dedicated to my beloved God in Heaven, my beloved family, my

wife and to my Mother Getruda Mputa who gave me full support from standard one

until now. May God bless you my beloved mother.

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LIST OF ACRONYMS

ANOVA - Analysis of Variance

BoT - Bank of Tanzania

CEO - Chief Executive Officer

GDP - Gross Domestic Product

ICT - Information and Communication Technology

KCB - Kenya Commercial Bank

LDC - Less Developing Countries

MBTI - Myers Briggs Type Indicator

MTP - Management Trainee programs

NBC - National Bank of Commerce

NMB - National Microfinance Bank

OECD - Organization for Economic Co-operation and Development

SMART - Specific, Measurable, Achievable and Timely

T&D - Training and Development

TBA - Tanzania Bankers Associations

UK - United Kingdom

UN - United Nations

UNIDO - United Nations Industrial Development Organization

URT - United Republic of Tanzania

MTP - Management trainee Program

HPT - Human Performance Technology

TQM - Total Quality Management

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ABSTRACT

The study aimed at examining adoption of management trainees programs in raising

managers performance, the case of Kenya Commercial Bank (KCB) (T) Limited. In

examining the same, the following specific objectives were attained; To find out the

qualities required by KBC Bank Management when selecting management trainee, to

find out the training package given by KCB Bank to Management trainee, to examine

Trainees working environment and the retention strategy used by KCB Bank to find

out performance measurement used by KCB bank to managers.

In attaining the aforesaid specific objectives, the study applied a descriptive case

study research design. Simple random and purposive sampling techniques were used

to choose the sample frame. In this case, the study was carried out at KCB Bank (T)

Limited and a sample size of 51 respondents participated effectively. Likewise,

interview, questionnaires and documentary guide were used as data collection

methods. Data were analyzed through Statistical Package for Social Science (SPSS).

Results on a one way ANOVA indicated that respondents perceived the management

trainees program existed at KCB as very beneficial. Contribution of training and

development towards improving staff performance and productivity were found to

improve ability for decision making, increasing staff motivation, improving customer

services and enhancement of optimum utilization of bank resources. Likewise, results

of the multiple regression analysis indicated that the level of satisfaction on

Management Trainee Program (MTP) by staff was Somewhat Satisfied (SS) inferring

that respondents were not very satisfied (VS), thus KCB had to improve identified

parameter.

The study advising KCB to embark on internal (bank wide) e-learning to enhance all

staff participate in upgrading their skill and product knowledge at once. However,

enforcement of management trainees programs among organizations was suggested

as areas for further studies.

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TABLE OF CONTENTS

Certification ................................................................................................................... i

Declaration ................................................................................................................... ii

Copyright ..................................................................................................................... iii

Acknowledgement ....................................................................................................... iv

Dedication .................................................................................................................... v

List of Acronyms ......................................................................................................... vi

Abstract ...................................................................................................................... vii

List of Tables ................................................................................................................ x

List of Figures ............................................................................................................. xi

CHAPTER ONE ......................................................................................................... 1

PROBLEM SETTING ............................................................................................... 1

1.1 Introduction ...................................................................................................... 1

1.2 Performance Management.............................................................................. 11

1.3 Management Trainee History ......................................................................... 2

1.4 Definitions of Key Words ................................................................................ 7

1.5 Statement of the Problem ................................................................................. 2

1.6 Research Question ............................................................................................ 3

1.7 Research Objectives ......................................................................................... 3

1.8 Significance of the problem ............................................................................. 4

1.9 Scope and of the study ..................................................................................... 4

1.10 Limitation of the study ..................................................................................... 5

1.11 Organization of the Study ................................................................................ 4

CHAPTER TWO........................................................................................................ 7

LITERATURE REVIEW .......................................................................................... 7

2.1 Introduction ...................................................................................................... 7

2.2 Theories and Empirical studies ....................................................................... 8

2.2.1 Training Theory................................................................................................ 8

2.2.2 Organizational Performance theory ................................................................. 9

2.2.3 Management Theory ........................................................................................ 9

2.2.4 Training and Development ............................................................................. 12

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2.2.5 Benefits of Training and Development .......................................................... 13

2.2.6 Employee Investment ..................................................................................... 14

2.2.7 Training and Reciprocity ................................................................................ 17

2.2.8 Training need.................................................................................................. 19

2.2.9 Conceptual Framework diagram .................................................................... 30

CHAPTER THREE ................................................................................................. 32

RESEARCH METHODOLOGY ........................................................................... 32

3.1 Introduction .................................................................................................... 32

3.2 Research Design ............................................................................................. 32

3.3 Target Population ........................................................................................... 32

3.4 Sampling Technique ....................................................................................... 32

3.5 Sample size ..................................................................................................... 33

3.6 Data Collection Methods ............................................................................... 33

3.7 Data Analysis ................................................................................................ 36

3.8 Validity and Reliability of Assurance ............................................................ 36

CHAPTER FOUR .................................................................................................... 37

PRESENTATION AND ANALYSIS OF FINDINGS .......................................... 37

4.1 Introduction .................................................................................................... 37

4.2 Demographics Characteristics of Respondents .............................................. 37

4.3 Perception towards Benefits of Management Trainees Program ................... 39

4.4 Contribution of Training and Development on Staff Performance and

Productivity .................................................................................................... 42

4.5 Level of Satisfaction for MTP by Staff .......................................................... 47

4.6 Strategies to Improve MTP at KCB ............................................................... 50

CHAPTER FIVE ...................................................................................................... 55

CONCLUSION AND RECOMMENDATIONS ................................................... 55

5.1 Introduction .......................................................................................................... 55

5.2 Conclusion ............................................................................................................ 55

5.3 Recommendations ................................................................................................ 59

5.4 Areas for Future Studies ....................................................................................... 60

REFERENCES ......................................................................................................... 61

APPENDICES .......................................................................................................... 64

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LIST OF TABLES

Table 3.1: Sample Size ............................................................................................. 33

Table 4.1: Characteristics of Respondents ............................................................... 38

Table 4.2: Attributes for KCB Staff Attaining MTP ................................................ 40

Table 4.3: ANOVA- Single Factor for Perception on MTP Beneficial ................... 41

Table 4.4: Impact of T&D on Staff Performance..................................................... 45

Table 4.5: KCB Performance ................................................................................... 46

Table 4.6: Regression Results on Level of Satisfaction for MTP ............................ 48

Table 4.7: Strategic Ways of Improving MTP at KCY............................................ 50

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LIST OF FIGURES

Figure 4.1: Response on Existence of MTP at KCB ............................................... 40

Figure 4.4 Response on Academic level, working experience, and level personal

Engagement .......................................................................................... 43

Figure 4.2: Does MTP have any Impact of Staff Performance? ............................. 44

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CHAPTER ONE

PROBLEM SETTING

1.1 Introduction

Management training programs help business executives build skills for leveraging

new opportunities and creating exceptional organizational value. As one of the top

business schools in the world, IMD has a deep understanding of the executive

education needs of senior executives. That’s why they offer specific management

training programs addressing strategic challenges and issues faced by leaders at the

top.

Fahad et al (2011) on his research analyzed the issue pertaining to employee as an

asset of organization; He took this idea from Book written by Nancy (1997).

Employees are the assets for the organization. Obviously, it is true in its every

sense. As the bones, mass, skin, blood and soul are essentials for creating the

human body, in the same way employees are necessary for developing the

organizations. It is important to have best suitable employees in an organization for

the purposes of maximized output. Organizations have HR department for the

purpose of placing right people at the right place with right knowledge. However,

the story doesn’t end here; organizations have to mould them according to their

requirements, called “Training” in general terms

Today organizations face increasing competition and more critical scrutiny due to

environment dynamism. Managers have been confronted with greater challenges in

securing organizational survival and competitive advantage. Management faces a

conflicting set of demands- they are expected to minimize costs while increasing

quality and fostering innovation and creativity. Consequently they have sought

strategies and practices to meet outside pressures. Mergers and acquisitions,

strategic alliances, downsizing, reengineering, outsourcing, and restructuring have

been common responses to the new challenges facing organizations (Jacobs et al.

1995).

Munir et al (2011) had a say pertaining to employee as organization assets, It was

said for many decades that employees are the assets for the organization.

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Obviously, it is true in its every sense. As the bones, mass, skin, blood and soul are

essentials for creating the human body, in the same way employees are necessary

for developing the organizations. It is important to have best suitable employees in

an organization for the purposes of maximized output. Organizations have HR

department for the purpose of placing right people at the right place with right

knowledge. However, the story doesn’t end here; organizations have to mould them

according to their requirements, called “Training” in general terms.

1.2 Background Information to the problem

The history of Kenya Commercial Bank (KCB) dates back to 1896 when its

predecessor, the National Bank of India opened an outlet in Mombasa, Upon

independence the Government of Kenya acquired 60% shareholding in National &

Grindlays Bank in an effort to bring banking closer to the majority of Kenyans. In

1970, the Government acquired 100% of the shares to take full control of the

largest commercial bank in Kenya. National and Grindlays Bank was renamed

Kenya Commercial Bank.

KCB bank is becoming leading banking group in east African region renowned for

its diversity in banking product and services, banking growth development across

the region in banking in; KCB Tanzania, KCB Uganda, KCB Kenya, KCB

Sudan,KCB Rwanda. As the key regional player in the regional financial market

the group maintaining the regional arrangement globally with corresponding banks

through the world. The bank for about 6 years is over seeking to recruit dynamic

and result oriented management trainee to join a team committed to grow the bank

in volume and profitability (Kcbbankgroup.com)

1.5 Statement of the Problem

A true management trainee allows fresh graduate an opportunity to have a glimpse

of what the company operation is all about. Management trainee allows the person

to work on different department to let them have an experience of all different

aspects of the operation. This would allow mainly fresh graduate to know which

operation or what kind of work he/she prefer. The Poor Performance and Inability

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of Most of the managers have brought greater challenges in securing Business

survival and competitive advantage which cause most of the company end up gain

Net loss. Management Trainee program have been adopted by many companies in

Tanzania to prepare future mangers who will provide good performance to secure

business survival. Although the program exist manager’s still faces a conflicting set

of demands on increasing quality and fostering innovation and creativity.

1.6 Research Question

1.6.1 General Question

How does management Trainee strategy help in raising manager’s performance at

KCB bank?

1.6.2 Specific Questions

(i.) What are the individual Management quality does KCB Bank consider

when selecting Management trainee?

(ii.) How is the performance of managers at KCB Bank measured?

(iii.) How is a working environment suitable to retain managers of KCB Bank?

(iv.) What is the suitable content of training package to suit management trainee?

1.7 Research Objectives

1.7.1 Main Objective

To determine how the use management Trainees strategy can raise managers

Performance of KCB Bank.

1.7.2 Specific objectives

(i.) To find out the qualities required by KBC Bank Management when

selecting management trainee.

(ii.) To find out the training package given by KCB Bank to Management

trainee.

(iii.) To examine Trainees working environment and the retention strategy used

by KCB Bank.

(iv.) To find out performance measurement used by KCB bank to managers.

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1.8 Significance of the problem

This study was undertaken to advance the effectiveness of management trainee

Program with human resource management issues within KCB Bank which would

provide greater efficiency to the company. Understanding the issues and how these

affect the conduct of the company could further the human resource management

processes proactive and advantageous. Among the human resources issues to be

addressed in this study would be Management trainee program and performance.

Based on the findings of this research, KCB Bank through the human resource

department would be provided with guidelines/recommendations in optimizing its

processes that can sustain a quality workforce in the future.

The study would also important as it can relate the factors affecting the likelihood

of success through effective employer-employee relationship that is buffered by the

human resource department.

On a more personal note, the study would be expected play a role in the business

environment in the future hence to contribute to literatures concerning

understanding strategic human resource management or how relationships within

the company can be made strategic.

1.9 Scope and of the study

The study was limited on the elements of human resource management at KCB

Bank in Tanzania, Kinondoni District Dar es Salaam particularly in the area of

training, and Performance. The utilization of a company as the basis of the case

study was another limitation because of the fact that it could not make

generalizations. To compensate, a recommendation for future study provided so as

to promote the continuous investigation on the issue. In this way, a continuum of

learning through investigation on this issue could be promoted.

1.10 Organization of the Study

This study has five main chapters through which chapter one depicts background of

the study, statement of the study problem, objectives of the study, research

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questions, significance of the study, scope and limitation of the study. Chapter two

reviews literatures on theoretical, empirical and conceptual framework. Chapter

three describes research methodology in form of research design, area of the study,

sample and sampling techniques, sources of data, data collection methods and data

analysis. Moreover, chapter four present findings and discussion as well as chapter

five depicts conclusions, recommendations and earmarked areas for further studies

going forward.

1.11 Limitation of the study

Survey was the primary means in the study in collecting data. The study was also

limited only on the pieces of information that the respondents were willing to

disclose. It was limited to the respondents’ capability to answer such questions.

There was information not disclosed due to its confidentiality.

The Time frame and Budget affected the good flowing of data collection, analysis

and thesis writing. This was caused by highly confidentiality of the company and

place to get review for this research.

1.12 Delimitation of the study

Data accessibilities

Researcher resolved the problem of data collection, through clear introduction

which was made by the reasecher when collecting primary data. Researcher uses

introduction letter given by Mzumbe University which assisted respondent to

understand that the information gathered will be used for academic purpose.

Budget Constraints

To solve the issue of Fund, the researcher prepared budget and make followed to

make use of the limited fund available.

Time Limitation

Researcher prepared work plan and follow to make use of time effectively.

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Slow return of questionnaires

On solving this problem researcher on the available data and other sources of

collection data like observation and interview was more effectively used

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This study is built on a relatively new field of research focusing on the Adoption of

Management Trainee program in raising manager’s performance for the Bank

institutions in Tanzania the case of KCB Bank. In this chapter some of the theories

pertaining to Management and Training that would help to give a concept on the

research topic. Also variables were identified and briefly explain how they would

be affected with management trainees program and the performance. This section

also shows empirical studies and other related reviews to see what other researcher

have said on the topic. And lastly identified the independent variables and the

dependent variable and combined these to formulate a conceptual framework.

2.2 Definitions of Key Words

Management Trainees - Wise Geek cleared the answer on term Management

trainee, As job title implies to someone who is in training to become a manager.

The duties assigned to this position can vary widely depending on the industry and

the company. In general, however, the position often entails spending a certain

amount of time shadowing each position under the manager's authority so the

trainee can learn what each employee does and how all the work fits together.

Strategy - According to Michael (2012) a strategy is about to achieve competitive

advantages

Manager performance - Performance management as referenced on this page in a

broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology

for managing behavior and results, two critical elements of what is known as

performance.

Includes activities which ensure that goals are consistently being met in an effective

and efficient manner. Performance management can focus on the performance of an

organization, a department, employee, or even the processes to build a product of

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service, as well as many other areas. Is also known as a process by which

organizations align their resources, systems and employees to strategic objectives

and priorities.

KCB Bank - KCB Bank (Tanzania) Limited was incorporated in April 1997. KCB

Bank Tanzania with its head office at Harambee Plaza, Ali Hassan Mwinyi/Kaunda

Drive, Oysterbay Dar-es-Salam, is a subsidiary of KCB Bank Group which

operates also in Kenya, Uganda, South Sudan and Rwanda. KCB Bank Tanzania

has 11 branches; 6 in Dar es salaam one each in Arusha, Kilimanjaro, Mwanza,

Morogoro and Zanzibar. These branches are linked on line with the rest of KCB

Group branches in East Africa which makes a total of 222 branches ( KCB Kenya

-169 , Uganda- 14, Rwanda – 9 and South Sudan

2.3 Theories and Concept

Training Theory

Attitudes can be trained, as it has been defined attitude as the tendency to think and

behave in persistent pattern according to one predisposition event, object, person,

organizations. Attitude is closely related to concepts of opinion or belief. The term

refers to the states of mind that cause a person to behave in certain predictable

ways. Moods, feelings, or emotions might not seem to be the kind of things that a

trainer ought to be concerned with, but these can be extremely important aspects of

the way people carry out their work and in way people react to events in the place.

In that case facet of human behavior that deserves attention in training Programs,

because attitude influence many negative behavior toward our organization such

individual performance.

Therefore this theory addresses on how Attitude can affect individual performance

and company performance at large. So training theory has been used in this

research purposely because it has direct relationship with the topic. Hence some

organizations have decided to adopt management trainee so that they can shape

attitude of the mangers toward achieving organization goal.

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Organizational Performance theory

In an organization, goal setting is one of the control systems, a component of the

appraisal process and an effective tool for human resource management Locke,

(2010). The concept of goal setting is now used to increase the performance of the

organization as well as the individual through management by objectives. Drucker

(2010) suggested that management by objectives can be useful for managers for

effectively managing the future direction of the organization.

The importance of goal setting are well specified and clear goals improve

performance in an organization by , making clear what people have to do, solving

specific problems related to the work as they emerge during the process of goal

setting, reducing ambivalence in the assigned work and thus encouraging

increasing efforts, supporting people to find a connection between their work and

the achievements of the organization, assisting individuals in allocating their time,

efforts and personal resources to important areas, giving a feeling of

accomplishment and contentment when specified goals are achieved, and providing

some control over the people and their work in an organization. Goals are an

objective way of assessing performance in the organization.

Organization performance theory has a direct relationship with researched topic,

because its centered on the goals which the organization has reach. This theory

looks on the concept of goal setting, where an individual has to be helped on how

he or she can work to produce good performance.

Management Theory

Allan (4th edition) in his edition based on the human relations and human factors

approaches were absorbed into a broad behavioral science movement in the 1950's

and 1960's. This period produced some influential theories on the motivation of

human performance. For example, Maslow's hierarchy of needs provided an

individual focus on the reasons why people work. He argued that people satisfied

an ascending series of needs from survival, through security to eventual 'self-

actualization'.

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In the same period, concepts of job design such as job enrichment and job

enlargement were investigated. It was felt that people would give more to an

organization if they gained satisfaction from their jobs. Jobs should be designed to

be interesting and challenging to gain the commitment of workers - a central theme

of HRM.

Classic theories were produced in the 1950s and 1960s within the human relations

framework. By the 1970s most managers participating in formal management

training were aware of: Theory X and Theory Y (McGregor, 1960); of Maslow and

Herzberg's motivation theories; and knew where they should be in terms of the

managerial grid (Blake and Mouton, 1964). These theorists advocated participative,

'soft' approaches to management. However, only a minority of managers in the

USA received such training, with even fewer in other countries. Most operational

managers - concerned with production, engineering, or distribution - had worked

their way up from low-level jobs: they were probably closer in spirit to F.W. Taylor

than the theorists of the 1950s and 1960s. This contrasted with personnel

departments with a higher proportion of people who had received academic

training; additionally, 'personnel' was an area where women were prevalent - as

opposed to production which was male dominated. Were women naturally more

open to human relations concepts than men.

The history of Training and development in Europe was shown in the Article by

Deborah Alpert (2003). This was also clarified in the Books by Brethower and

Smalley (2012) and in the book by Steinmetz (2004). Since prehistoric times the

jobs of adults have been taught to children to prepare them for adulthood.

Throughout the centuries societies have changed, have become more complex. The

kinds of work to be done, the skills needed, and the tools used to do the work have

also changed. In order to manage these changes in the complexity, volume, and

content of work, job training also evolved. When humans created artifacts, the need

for teaching others how to use those artifacts became necessary.

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Teaching others to use a tool to perform a task was one of the first goals of training.

"As man invented tools, weapons, clothing, shelter, and language, the need for

training became an essential ingredient in the march of civilization" (Steinmetz,

2004). As the artifacts became more complex, different ways of training were

developed to be more effective and efficient. "Instructional practices were

developed that served the needs of the times, evolving into accepted instructional

paradigms" (Brethower and Smalley, 2012). These different practices were

developed at different times, and some of them changed through the years, but all

of them are used today, depending on the training need and situation.

Training is different from education. Training teaches the learner how to do a

specific task, such as running a machine, or making a shirt. Education is instruction

in the more general knowledge of the society, such as the history of the society, or

knowledge of mathematics. As societies developed, there accumulated more

knowledge than people could pick up on their own or learn informally from others.

At some point it became necessary to formally educate young people in the

amassed knowledge of their society in order to help them function in that society.

Moreover management theory on the motivation factor helpful the researcher to

come up with the evidence that. Well motivated employees are in a position of

having good performance enough to justify their existence within the company.

Performance Management

Performance management involves many roles; you must be a communicator, a

leader, role model and collaborator. Each Individual member of the team exactly

what is their responsibilities and expectation are, as their supervisor you should

work hard to help them to reach goals. Some people find performance management

to be a difficult role to play. Some people in particularly have difficulties when it

comes to evaluation performance. But when it done well, performance management

is about partnership and motivation. If it’s done from this perspective, there is

something to be uncomfortable about. When this perspective it shared with

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employees and they learn to see it in that way. Performance management became a

powerful tool that helps your team to become a successful.

Training and Development

Employees serve as the target of training and development. The purposes of

learning from the employee perspective are basically to acquire skills and

knowledge to do the job and to gain promotion and advance career. In facilitating

career changes, training and development also caters for the personal and

professional developments of the employees. Learning can be defined as

knowledge obtained by self-directed study, experience, or both; the art of acquiring

knowledge, skills, competencies, attitudes, and ideas retained and used; or a change

of behavior through experience (as cited in Gilley and Maycunich 2012, ). Senge

(1990) believes that learning has little to do with taking in information; rather it is a

process that enhances capacity. Learning is about building the capacity to create

that which one previously could not create.

Principles of learning are the guidelines to the ways in which people learn most

effectively. The more the principles are included in training, the more effective

training is likely to be (Sims, 2002). The first principle is motivation. In order to

learn, a person must want to learn. In the context of training, motivation influences

a person’s enthusiasm for training, keeps attention focused on the training

activities, and reinforces what is learned. Second behavior modeling is where

majority of what an individual learns is gained through an observation of others;

one would imitate other people’s actions when they lead to desirable outcomes for

those involved (Sims 2002). Third is participation. Another way to inspire trainees

is through their active participation in the training process. Activities that facilitate

active participation enable trainees to become directly involved in the act of

learning. Learning usually is quicker and more long-lasting when the learner can

participate actively. Participation improves motivation and apparently engages

more senses that help reinforce the learning process (Sims 2002). Repetition of

practice is the fourth principle. Regardless of individual differences and whether a

trainee is learning a new skill of acquiring knowledge of a given topic, the person

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should be given opportunity to practice what is being taught. Practice is also

essential after the individual has been successfully trained (Sims 2002). There are

two aspects of practice – active practice and over learning. Active learning allows

the trainees to repeat to perform the task or use the knowledge being learned. Over

learning occurs when trainees are given the opportunity to practice far beyond the

point where the task becomes ‘second nature’ and is said to be ‘over learned’. The

fifth and most important of all which will give life to other four is application

because training is useless unless learning can be applied.

At the collegial level, learning purports on improving efficiency and effectiveness

and facilitating organizational changes. The group ethos of learning also prepares

the organization to adapt to changing market conditions or environment and then

improve employee performance. While at the organizational level, the purposes of

learning are overcoming or preventing skills shortages, facilitating workforce

planning strategies and also succession management and attraction and retention.

The reasons and motivation behind the training and development are: 1) to improve

performance – in order to correct deficiencies in the performance of the staff,

training must be conducted. One of the rationales for the training programs is to

remove current and avoid future career deficiencies. Although training cannot solve

all the problems of ineffective performance, a sound training program is

instrumental in minimizing those problems; 2) to update employees’ skills – in

order to keep up with the advances and changes in the external and internal

environment, the skills of the employees must be updated. Employee skills must be

updated through training so that changes are successfully integrated into the

organization and 3) to promote job competency – in order to update the knowledge,

skills and abilities of a newly promoted employee, training is necessary. Training

can be used to fill the gap between the new employee’s predicted and actual

performance.

Benefits of Training and Development

Thereby, training and development is beneficial not just for the organization itself

but also to the individual employees. On the one hand, training and development

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leads to improved profitability and/or more positive attitudes toward profit

orientation, improves the job knowledge and skills at all levels of the organization,

improves the morale of the workforce and helps the employees identify with

organizational goals (Sims, 2002). On the other, training and development benefits

individual employees through helping them make better decisions and effective

problem solving, assisting in encouraging and achieving self-development and self-

confidence, helping an employee a person handle stress, tension, frustration, and

conflict, increasing job satisfaction and recognition and moving the person toward

personal goals while improving interaction skills (Sims, 2002).

Employee Investment

An investment is a contribution that an employee makes today in anticipation that

the benefit and“pay off” will be achieved in the future. Howard (1960) identified

these investments as “side bets”. In many aspects, training is one such “side bet”

that may increase employee investment and commitment. The question is how does

training achieve this? Gary (1993) sought to better understand the relationship

between the costs and returns to training by identifying two mutually exclusive

forms of training

– general training and specific training. General training is training that provides

the worker with skill development not only applicable at the present employer, but

also at other firms throughout the labor market. Some examples of general training

programs are apprenticeship trainings, general computer training, and learning

surgical techniques that could be used in other hospitals. Educational

reimbursement is also an example of general training, as the skills acquired can be

of use to many different employers (Kaufman, 2006). Gary Becker’s model

suggests that because general training provides skill development that can be used

at other companies, the employer will not invest in it. The underlying premise is

that within a competitive labor market, employees are typically paid for their level

of production. With that, a company that provides general training will have to pay

the employee a wage that coincides with their newly learned skills and their higher

level of production. Companies that continue paying employees the pre-training

15

rate of pay, risk losing the employee to a firm that will provide the higher wage. As

a result, turnover would increase. By paying the higher wage, as well as paying for

the general training, the current employer would be unable to recoup its overall

investment. As a result, companies have no incentive to pay for general training

and it is the workers themselves that will need to bear this cost (Frazis and Spletzer,

2009).

In contrast, specific on-the-job training is training that increases the workers

productivity and output only at the company that provides it. The training is

“specific” to that particular company only. Examples of specific training may

include learning to drive a tank or operating machinery that is company specific.

Specific on-the-job training also differs from general training in that it is typically

the company and not the individual worker that bears the cost of the training. The

thought is that because training is specific to the individual company and

nontransferable, the productivity of the worker increases for that particular

company, but would remain the same for any other organization within the labor

market. As a result, it is unlikely that specific training would result in turnover.

Gary’s argument essentially states that the more specific the training the less likely

Brume –Training and Employee Commitment turnover will occur. As the skills

obtained are non-portable and non-transferable to other organizations, this type of

specific training is paid for by the employer. In turn, employees typically receive

less pay during the specific training period in anticipation of future wage increases.

By contrasting Becker’s model with a commitment approach one can see that the

employee’s investment of time and the anticipation of higher wages as potentially

leading to an increase in commitment. Training in this context becomes a “side

bet”. Investment of time and effort expended during the training process is one such

factor that may enhance an employee’s commitment to the organization. Another

example that expands upon Becker’s model is the blending of general and specific

skills. Becker’s model argues that general training would lead to an increase in

turnover and that companies have little reason to invest in it. Several studies have

16

proven that companies do invest in a blended form of general-specific training,

many times without even realizing it.

Acemoglu (2009) argued that general and specific skills are;

Complementary to one another, they indicate that organizations indirectly invest in

general skills while providing skills that are presumed to be “firm-specific”. while

assuming the skills being taught is company specific. From an investment

perspective, commitment can be obtained due to the investment in time and energy

involved in the training process. Regardless of the specificity of the training, the

time and effort that an employee puts forth in any training program can lead to a

more committed worker. Along these lines, Krueger and Rouse (2008) found that

general training and specific skills are many times embedded in one another. They

found that employees that attended training, regardless of its specificity, became

more invested employees. These employees were shown to seek more job

upgrades, receive more performance awards, and have better job attendance than

those that did not attend training.

The “general skills” training program which was paid completely by the employer

essentially led to less employee turnover. It can be argued that the expenditure of

effort and time led these employees to become more committed to the organization.

In contrast to Becker’s belief that companies have little reason to invest in general

training, from a commitment perspective one is able to ascertain several benefits to

doing so. As stated throughout this section, the time, energy, and effort, that

employees display in any type of training can result in a more invested and

committed employee. Training, whether it is general or specific, can be viewed by

the employee as a current investment that may offer a greater “pay off” at a later

date. This increased investment on the part of the employee ties them closer to the

organization (Scholl, 2005). Should the investment achieved from training become

linked to part of a more global human resource strategy within the organization,

then commitment would grow even more (Bartlett,2011).In addition, general

training that is unable to increase commitment through investment, may be able to

accomplish it through reciprocity. Although not achieved through investment,

17

reciprocity may provide an additional reason for an organization to invest in

general training.

Training and Reciprocity

Reciprocity essentially states that an employee would help the company because

the company helped them. This parallels the notion of the employee having a

“sense of debt” toward the organization. Research on this element of commitment

indicates that training can play an integral role in building a sense of debt to the

company. Training that achieves reciprocity in the employee would foster an

individual’s commitment to the organization. Many scholars agree that

organizations that train their employees consistently have better outcomes than

those that do not. When business environments change quickly and abruptly, it is

typically the companies with the best trained employees that adapt and adjust most

efficiently. Glance, Hogg, and Huberman (1997) determined these statements to be

accurate in their study that looked at training and turnover from the perspective of

evolving organizations.

The researchers affirmed that training encourages “spontaneous cooperation” in

many large companies. Even in fast moving and ever evolving industries, the

cooperation that can be achieved through training could lessen the need for

complicated company policies. From a reciprocity perspective, one can ascertain

that this “spontaneous cooperation” which results from training is due to the

training participant’s sense of debt to the company. These fast paced, ever-

changing industries need to retain employees in order to achieve company goals

and gain a competitive advantage. As the study found, organizational training can

offer these employees an opportunity they may have not been able to achieve

elsewhere.

This translates to the employee feeling a sense of debt to the company and desiring

to “spontaneously cooperate” as a means of repaying the reward that they received.

Ronald (1995) found that employees that participated in the most number of

training programs and rated the trainings they attended as most relevant, viewed the

18

organization as being more supportive, looked at the company more favorably, and

had less of intent to quit. One could argue that training was able to enhance the

employee’s sense of debt towards the organization. The result is a more committed

employee that has a greater desire to remain. In this example, reciprocity holds that

the employee received a “benefit” of training from the company and will attempt to

repay it in the future. In essence, the employee will need to remain committed to

the organization until the “benefit” is paid off (Scholl, 2005).

Barrett and O’Connell (2001) clearly portrayed the idea of reciprocity in their

empirical research of organizations in Ireland. The researchers found that because

of the transferability of skills that general training offers, employees devoted

greater effort and energy to general training. Barrett and O’Connell found that the

outcome of training depends on the effort that the participants put into it. The

greater the sense of debt incurred with the training program, the more of a return on

the investment that organizations will secure from the employee. From an

employee perspective general training was found to be more valuable to employees

than specific. Since a great deal of research indicates that general and specific

training are many times enmeshed and intertwined in each other, it may best serve

organizations to promote and encourage participation in general training programs.

Employees many times view general training as a “gift”. The employers disregard

for the portability of the general skills being taught, signals to the employee that the

organization is committed to them. In line with reciprocity, Barrett and O’Connell

(2001) view this “gift” as being a type of self-fulfilling prophecy. Organizations

that invest in and provide general training make the participants feel like “insiders”.

The sense of being an “insider” is displayed in the employee’s exertion of more

effort, improved work ethic, and increased productivity. The “gift” led to the

development of a sense of debt to the company. In order to repay this debt, the

employee became more committed and devoted to the organization.

19

Training need

The training needs assessment is the critical activities for the training and

development function, A. miller et al (2006). Whether the human resource

generalist or specialist they should be adept at performing training need assessment.

Miller in the purpose of a training need he identify performance requirement or

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

need, that are closely related to fulfill the organization goals and objectives,

improving productivity and providing quality product and service.

Models of Training, Training is a sub-system of the organization because the

departments such as, marketing & sales, HR, production, finance, etc depends on

training for its survival. Training is a transforming process that requires some input

and in turn it produces output in the form of knowledge, skills, and attitudes

(Naukrihabu.com).

According to Naukrihabu website there are four necessary inputs i.e. technology,

man, material, time required in every system to produce products or services. And

every system must have some output from these inputs in order to survive. The

output can be tangible or intangible depending upon the organization’s

requirement. A system approach to training is planned creation of training program.

This approach uses step-by-step procedures to solve the problems. Under

systematic approach, training is undertaken on planned basis.

The three models were initiated in the Naukrihabu.com which are - system model

The system model consists of five phases and should be repeated on a regular basis

to make further improvements. The training should achieve the purpose of helping

employee to perform their work to required standards.

Instructional System Development model or ISD training model was made to

answer the training problems. This model is widely used now-a-days in the

organization because it is concerned with the training need on the job performance.

Training objectives are defined on the basis of job responsibilities and job

20

description and on the basis of the defined objectives individual progress is

measured. This model also helps in determining and developing the favorable

strategies, sequencing the content, and delivering media for the types of training

objectives to be achieved.

Transitional model focuses on the organization as a whole. The outer loop

describes the vision, mission and values of the organization on the basis of which

training model i.e. inner loop is executed.

The trainee is a major stakeholder in a training program. The whole training

program is developed for the trainees only. Each candidate plays an important role

in the transfer of training because one participant's attitude regarding the training

influence the other participants and also each participant can assist by advancing

the skills. Participant's willingness to invest in the program is directly proportional

to the benefits of the learning that the trainee could expect. Each participant forms

their own perception towards training. Some perceptions remain the same during

the program, while some faded depending upon the assessment of a program by the

participant.

Firms can develop and enhance the quality of the current employees by providing

comprehensive training and development. Research indicates that investments in

training employees in problem solving, decision-making, teamwork ,and

interpersonal relations result in beneficial firm level outcomes (Russell, Terberg,

and Powers, 1985).Training also has a significant effect on employee performance.

Firms can develop and enhance the quality of the current employees by providing

comprehensive training and development. Indeed, research indicates that

investments in training employees in problem-solving, teamwork and interpersonal

relations result in beneficial firm level outcomes (Russell, Terberg, and Powers

1985).

Employee Productivity

Employee Productivity is the log of net sales over total employees - an economic

measure of output per unit of input. Employee productivity measures may be

21

examined collectively (across the whole economy) or viewed industry by

industry. The dictionary defines ‘productivity’ as the state of producing rewards or

results. ‘Productive’ means fruitful, lucrative and profitable. In this context,

productivity is synonymous with output. In scientific literature, ‘productivity’ is

defined as the relationship between output and input; between results or proceeds

and sacrifices. If it involves the ratio between output and a specific part of the

input, this is referred to as ‘partial productivity’: for example, labor productivity

expressed as the amount of production for each labor unit, or the number of labor

hours for each product unit. Companies today are forced to function in a world full

of change and under various complications, and it is more important than ever to

have the correct employees at the correct job with the right qualification and

experience in order to survive the surrounding competition. The successful and

prosperous future of an organization is dependent on, knowledgeable and well

experienced workforce. That is why training is a fundamental and effectual

instrument in successful accomplishment of the firm's goals and objectives.

Training not only improves them resourcefully, but also gives them a chance to

learn their job virtually and perform it more competently hence increasing firm's

productivity. Training has been an important variable in increasing organizational

productivity. Most of researches including Colombo and Stanca (2008), Sepulveda

(2005) and Konings & Vanormelingen, (2009), showed that training is a

fundamental and effectual instrument in successful accomplishment of the firm's

goals and objectives, resultingin higher productivity

Employees are increasingly demanding change, choice, flexibility, and variety in

their work; suggesting that with the de-layering of organizations and empowerment

of individual employees, the future for both the organization and the individual lies

not in promotion to successively higher levels of management, but rather in

developing the value of the individual as human capital (Seidler, 1996). The value

of human capital is enhanced by acquisition of higher performance potential such

as new tasks, functions, and KSAPs (knowledge, skills, abilities, personal

attributes) (McGregor, 1988).

22

Further, higher performance capability usually begins with planned, structured

methods to ensure that cross-training occurs, and with constant evaluation on the

basis of application in the work place (Feigenbaum, 1988). Total quality

management (TQM) writers argue that for the process to be successful, work

groups must be "empowered" to function as a self-directed team (Bowen & Lawler,

1990).

When reviewing the literature on quality management, one is struck by the absence

of any mention of individuals who have problems in the workplace (Seidler, 1996).

Moreover, employees involved in an effective training program manifest a love for

their work and are interested in doing their best for the organization (Seidler, 1996).

The importance of employee training and development has long been recognized as

a crucial issue for businesses (Ford et al., 1997). To the extent that employee-

training programs are effective, companies are able to avoid wasteful spending and

improve performance and productivity. Thus, a key consideration for virtually all

business is the expected return provided the organization for its training investment.

According to Craven (1997), there is some link between training and good

performance but the direction is difficult to identify. However, what is known for

sure is that the training and development of staff is relevant in better performing

companies. The difficulty in identifying the correlation between training and

performance is attributed to the determination of changes in performance.

Measuring knowledge acquired is easy to determine. But to measure skills and

attitude development is something else. (Craven, 1997). This evaluation needs to be

done over a long time period and needs to be carried out by those working with the

candidate, to evaluate how the delegate performed before and then after the training

process.

Traditional and Modern Approach of Training and Development

Traditional Approach, Most of the organizations before never used to believe in

training. They were holding the traditional view that managers are born and not

made. There were also some views that training is a very costly affair and not

23

worth. Organizations used to believe more in executive pinching. But now the

scenario seems to be changing

The modern approach of training and development is that Indian Organizations

have realized the importance of corporate training. Training is now considered as

more of retention tool than a cost. The training system in Indian Industry has been

changed to create a smarter workforce and yield the best results.

2.4 Empirical studies

Munir F. at el (2011) from India wrote a research on “effect of On-the-Job

Coaching on Management Trainees Performance” This paper has identified the

relationship between on-the-job coaching and job performance by considering the

external forces involved in this relationship.

The framework of the study illustrated the relationship between on the job

coaching and job performance. The research has used quantitative design by

application of case study technique.

The data was collected through questionnaires from Marketing Sales Executives

(MSEs) in the Rawalpindi/Islamabad regions of Glaxo-Smith-Kline (GSK). The

paper has identified several variables which constitute coaching and it was found

by the results that job performance has a positive relationship with on-the-job

coaching. Furthermore the variables of coaching like coach ability, team

coordination, action learning, and flexibility of the coach are also positively related

with Job Performance. The paper suggests that at GSK, coaches need to lead from

the front and use action learning techniques more often and they should perform

what they deliver to the employees. Several rewards can also be given to trainees

who perform well during the session. Sometimes a pat on the back can increase

motivation immensely which in turn increases their performance on the job.

Mubashar Farooq (2011)MS Scholar, Iqra University Islamaba wrote a research on

the “Impact of Training and Feedback on Employee Performance “Some

24

important findings of the study show that it is unable for any organization to be a

distinctive and effective result producer without extraordinary input from its

employees, which is impossible without knowing their requirements for working in

the environment. Low and high level employees should be equally treaded in

providing training and response to their feedback. Upper management needs

cooperation of their subordinates in each activity. Hence training and feedback

provide the assistance in improving the employee’s methods of performing their

tasks which readily impacts their performance.

However he concluded that, training and feedback not only individually strengthen

the employees’ performance but also they collectively work for creating the

environment which is compatible with all level of employees and They also

continually nourish their work attitude and behavior.

Dr. Chikati Srinu (2012). On his study titled “Training and Development

Practices The case of NTPC Ltd Ramagundam” The need of the study was to

see how is the effectiveness of the organization depends on quality of the

manpower. In this globalize business environment, where changes are only the

permanent feature of the organization, the need is to focus on enhancing the

competencies of the employees this can be done only when the organization proved

effective training development programs. Organization and individual should

develop and progress simultaneously for their survival and attainment of mutual

goals. So every modern management has to develop the organization through

human resource development. Employee training is the important sub-system of

human resource management. Training is the act of increasing the knowledge and

skills of an employee for doing a particular job. Training is a short-term educational

process and utilizing a systematic and organized procedure by which employees

learn technical knowledge and skills for a definite purpose. This paper aims to

attempt the need of training and development programs in respective organization

and examine the methods and evaluation of training programs was discussed. In

other words training improves, changes, molds the employee’s knowledge, skill,

behavior, aptitude, and attitude towards the requirements of the job, and

25

organization. Employee training is distinct from management development or

executive development. While the former refers to training given it employees in

the areas of operations, technical and allied areas, the latter refers to developing an

employee in the areas of principles and techniques of management, administration,

organization and allied areas.

Manu J (2004) wrote are research paper Bases on “Training and development

Techniques to improve organization performance for Ghanaian Firms” The of

the study was The purpose of this study was fivefold. First, to describe selected

successful models of training and development as they may apply to firms in

Ghana. Second, to describe selected methods of needs assessment for training and

development programs for employers and employees. Third, to identify selected

managerial techniques that contributes to lost productivity and morale. Fourth, to

selectively assess what business skills are most essential for career success. Fifth,

the results of this study suggest recommendations for developing a comprehensive

plan (model) for the creation of effective employee training and development

program in Ghana. This study was conducted by engaging in comprehensive review

and critique of the existing literature on training and development models.

The reason of this research was Among the numerous challenges that mitigate

against performance and growth of most businesses in Ghana include labor and

management.

The objective of her paper was to seek structured and appropriate methodologies

for successfully implementing Training and Development models in Ghanaian

organizations. To this end, five major purposes of concern were carefully analyzed

and discussed in detail. They include:

1. Training and development models

2. Needs assessment

3. Managerial techniques

4. Essential business skills

To achieve these purposes four successful proven training and development have

been selected and discussed. The selected models include ADDIE model, Human

26

Performance Technology, Performance-Based Instructional Design, and Total

Quality Management. ADDIE model is a step-by-step process of the training. This

model allows the learners to master a skill, knowledge, or attitude. The model

focuses on the job by having the learner achieve standards necessary for the proper

job performance.

Human Performance Technology (HPT), and other-hand, is systematic way of

improving HPT and making work more productive. This model has improved

human competence and productivity beyond traditional concepts of training and

human resource development. Additionally, HPT analyzes elements of a system,

and directly generates significant economic impact on organization. Performance-

Based Training Design teaches employees job performance that enables them to go

back to work and do the job, ot just know how to do the job. The design includes

hands-on exercises to replicate the actual function of what is being.

Total Quality Management (TQM) is management approach to long-term success

through customer satisfaction. It is based on the participation of all employees of

the organization in the improvement of processes, products, services and the

organizational culture. Top management has been fully committed for employees to

show commitment. Another purpose of this research was to describe needs

assessment for conducting training and development programs in Ghana. The

researcher found that needs assessment is a systematic exploration of the way an

organization should function. For Ghanaian firms to establish a successful training

and development program, the following must be taken into account:

1. Determine what training is relevant to the employees ‘job

2. Determine what training will improve performance

3. Determine if training will make a difference

4. Differentiate training needs from organization problem

5. Improve job performance with organizational goal and bottom-line.

A managerial technique was yet another purpose used to identify techniques that

contribute to lost productivity and morale in Ghanaian firms. The techniques

include:

1. Creating climates for openness

27

2. Distributing and sharing information

3. Building the team

4. Leading and developing teams

The study also assessed the most essential business skills for career success in

Ghanaian. The skills indicated:

1. Strategic planning

2. Goal setting

3. Examining and understanding organizations’ values

Juliana on her paper resulted on formulating recommendation for developing a

comprehensive plan (model) for the creation of effective employee training and

development within Ghanaian firms. The study utilized existing literature on

training and development models for this purpose.

Dominic, Theresia, Kessy, Severine and Manu, Franklyn (2010) wrote a report on.

“Effectiveness of the training and development function: a Tanzanian case

study” The paper presented the findings on the effectiveness of training and

development program carried out in President's Office, Public Service Management

(PO-PSM) in Tanzania. Data were collected through structured questionnaires,

unstructured checklists and review of organizational documents within the Office.

Despite a well-designed training program, the findings established that inadequate

and poor allocation of training funds, unclear criteria for trainees' selection, and

inability to determine type of training needed by trainee's were considered as

problems of implementing training program within the Public Service Management

Office. Furthermore the results show that training and development is not

frequently evaluated in order to determine what benefits it brings to the

organization. From these findings it is recommended that the training program

needs to be improved in order to promote transparency as well as practical

implementation of training plans.

Ajit Jadha undergone A Study on “Training and Development in Indian Banks”

researcher defined Training and development are continuous process in improving

the caliber of employees. It is an attempt to improve their current and future

28

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 programs at the time

of induction, promotion and other situation.

In this research paper an attempt was\ 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.

Ajit on the Analysis of the finding came up with the following response

i. 97% employees received training related to their

banking jobs.

ii. 85% employees said that the duration of training was

adequate.

iii. 85% respondent believed that training programme

boosts their morale to discharge their duties .

iv. 92% respondents said that training programmes

which received, affected positively on their work performance.

v. 85% respondents were satisfied with such training

programmes organized for them where as remaining thought that they needed

more than technical training which was actually given to them. They need

training regarding customer handling and customer satisfaction.

29

vi. 85% respondents understood psychology of clients

with whom they deal with in their day to day life.

vii. 92% employees achieved team objectives because

of training provided by the banks.

viii. 85% employees thought that training programme

has practical use.

Most of the respondents have attended in house training and in some cases training

was provided at regional or/and head office and the training programmes mostly

was compulsory, the duration of which was from 2 days to 15 days.

The induction training programmes was mostly undertaken to make employees

familiar with the computer software that they were going to operate in day to day

working and promotional training to managers was also provided to understand

complex work at higher levels.

Khan J at el (2011), wrote a paper on the” Impact-of-Training-and-

Development-on-Organizational-Performance” on their findings show Training

and Development, On the Job Training, Training Design and Delivery style are four

of the most important aspects in organizational studies. The focus of current study

is to understand the effect of Training and Development, On the Job Training,

Training Design and Delivery style on Organizational performance. The back bone

of this study is the secondary data comprised of comprehensive literature review.

Four Hypotheses are developed to see the Impact of all the independent variables

on the overall Organizational Performance. The Hypotheses show that all these

have significant effect on Organizational Performance. They used Hypotheses

which came from the literature Review and also proved them with the help of

literature review. Results show that Training and Development, On the Job

Training, Training Design and Delivery style have significant effect on

Organizational Performance and all these have positively effect to the

Organizational Performance. It means it increases the overall organizational

performance. they also prove Hypothesis through empirical data. However results

were strongly based on the literature review. Results show that Training and

Development, On the Job Training and Training Design and Delivery style have

30

significant effect on Organizational Performance and all these have positively

affect the Organizational Performance.

Conceptual Framework diagram

1

H G

F

2 A 4

B E

C D

3

Source: Researcher, 2013

Conceptual framework explains direct the aim of the study which many

organizations in today world strive to raise manager’s performance toward

achieving organization goals. Hence there is relationship between variables within

the conceptual framework which aimed at providing fact on research finding.

Arrow 1: Individual qualities in management depend on the quality of training

package management get from the company. Such as training facilities, training

allowance and so on.

Allow 2: In Additional to that, there is also the direct relationship between Training

package management and performance measurement of managers. If training

package is sufficient definitely there will be clear set up measures for performance

of individual manger.

Individual Quality in

Management

Training Package of

Management

Working environment

of Management trainee

managers

Performance measurement

of Managers

Raising

Managers

Performance

31

Allow 3: There is also direct relationship between performance measurement of

managers and Working environment of Management trainee. If there is a good and

defined performance measurement for mangers, this will set good ground for a

company to create a good environment for managers to have better performance.

Allow 4: Moreover there is also a relationship between Working environment of

Management trainee and Individual qualities in management. In this relationship

show that a good working environment will eventually leady to raise individual

work quality.

Since all these Variables relates each other, generally I f you combine them all it

will bring result of either the company have mangers who perform good or not.

Summary:

IF: AB = FE therefore HG = CD

32

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter outlines the methodology used in conducting the research study. The

study area and population describe each respective section including the research

design, sample size, sampling techniques, the instruments used in data collection,

types of data, and the method used to analyze the collected data.

3.2 Research Design

Research design refers to the framework or plan for a study that guides the

collection and analysis of data (Churchill and Brown, 2007). The design of this

study was descriptive case study in nature as it seeks to examine adoption of

management trainee program in raising managers’ performance, the case of KCB

Bank. Such research design was selected due to its convenience and time saving

compared to others like survey and experiment.

3.3 Target Population

Mugenda (2003) defined population as a complete set of individuals, cases or

objects with some common observable characteristics. The population of this study

comprised of licensed commercial bank personnel of KCB Bank and their

departmental managers, and Management trainees. A pilot survey was undertaken

and obtained data from the Human Resource Managers of the financial institutions

on the actual managers involved in KCB Bank operation allocation.

3.4 Sampling Technique

According to Kothari (2007) purposive sampling allows the study to use cases that

have the required information with respect to objectives of the study. The purposive

sampling technique was employed to obtain a representative sample form KCB

head office given the fact that most of them were known to the researcher,

33

therefore, a convenient person whom the researcher believed could give proper

information was approached. Likewise, a simple random sampling procedure was

applied to branch employees (Branch managers, Departmental managers, Bank

supervisors and Bank trainees). In this case, these respondents were drawn from 11

branches in the country as responded by e-mail questionnaires.

Therefore Non- probability sampling technique were employed, samples were

gathered in a process that did not gave all individuals in the Population equal

chances of being selected.

3.5 Sample size

Initially, the study planned a sample size of 60 respondents but in due course of

data collection, actual sample was 51 respondents whereas 13 from head office, 9

from Branch managers, 10 from Departmental managers, 9 from Bank supervisors

and 10 Bank trainees. In this connection, the study attained 85 percent response rate

(Table 3.1)

Table 3.1: Sample Size

Sample Unit Planned Sample Size Actual Sample Size Percentage

Head office Staff 16 13 24%

Branch Managers 11 9 18%

Department Managers 11 10 20%

Bank Supervisors 11 9 18%

Bank Trainees 11 10 20%

Total 60 51 100%

Average Response Rate 85%

Source: Research Data, 2013

3.6 Data Collection Methods

The study used two sources of data such as primary and secondary data. In this

regard, primary sources of data were those new data extracted from field by the

researcher. Again, secondary sources of data were those existing data available in

other sources like books, research papers, reports, journal and any other

publications. Therefore, in collecting data for this study, the following methods

were employed.

34

3.6.1 Interview

The face to face interview was conducted to head office employees. This was

applied given the fact that these kinds of people do not have enough time to

concentrate on questionnaire and fill in; therefore, interview was thought an ideal

technique for these cadres. Information obtained were recorded and analyzed.

Interview technique created and promoted understanding between the interviewer

and interviewees. It involved presentation of oral-verbal stimulus and reply in oral

verbal responses. The technique led to smooth flow of data from respondents to the

interviewer. However, the major advantage of this method was that interviewees

were comfortable more free to give out own views and opinions pertaining to the

study.

3.6.2 Questionnaires

Questionnaires comprised of 11 open ended questions and 4 close ended questions

were administered to branch employee at 11 branches in Tanzania. The

questionnaires were sent and responded by e-mail. Open ended questions saved

time where respondents were required to select an appropriate answer. Likewise,

close-ended questions were useful given the fact that gave room for respondents to

give out views related to the study at length.

3.6.3 Documentary Analysis

Documentary analysis is a suitable method for collecting data from secondary

sources that consist of statistical statements and reports, whose data were used by

researchers for their studies for example, articles, books, journals, Census reports,

annual reports, policies and other useful published reports on current statistical

statements, etc. The secondary source consists of not only published records but

also unpublished records. This was useful for the researcher in understanding

various issues related to the study.

35

3.6.4 Instruments for Data Collection

3.6.4.1 Interview

The study utilized both structured and un-structured interview questions. Structured

questions aimed at bounding the respondent to give out answers or information

intended by the researcher where as un-structured interview questions were two

ways traffic giving both interviewer and interviewee a chance to giving more

opinions beyond the question boundaries. In this regard, 7 interview questions were

posed to customers as shown on appendix II. However, advantage of this

instrument was flexibility of interviewees to give out their views without

restrictions.

3.6.4.2 E-mailed Questionnaires

E-mailed questionnaires consisting of 15 questions of which 4 questions were

closed –ended and 11 questions were open-ended. Researcher chose this method

due to the fact that it was of low cost in administering, free from bias of the

interview and respondent has adequate time to give well thought out answers.

Structured and unstructured questionnaires were administered to branch staff in

order to get accurate information given their conversance in bank operations and

management at large.

3.6.4.3 Documentary Review Guide

This study was guided by the following documentations; Government Legislations,

Marketing plans, Policies, Procedures, human resources manual, management

trainee program policy, Circulars and Standard in general. Likewise, various

reports and published strategies and researches were used. Documentary review

guide aimed at providing an overview on the impact customer satisfaction in

improving performance. Also, information obtained from such documentary review

enhanced the researcher to draw an inference on trend analysis for the level of

satisfaction on management trainees programs among respondents. Moreover, the

advantage for this instrument was that there were vast of data in various documents

and publications aiding success of this study.

36

3.7 Data Analysis

The data obtained from the study were coded and entered into computer software

the Statistical Package for Social Science (SPSS) for analysis. Only frequencies and

percentages computed for quantitative analysis. Tables, graphs and/or charts were

used to present data collected or that needed frequency or magnitude explanation.

On performance measurement simple arithmetic was applied in finding the levels to

which respondent were satisfied with management trainee programs existed at

KCB.

3.8 Validity and Reliability of Assurance

Validity - To ensure minimal or no participant’s errors the research questions

will be formulated based on respondents to possess the relevant information,

understand their role as respondents. Interviewees were given adequate attention to

show cooperation. Response-based errors were outside the control of this

researcher, however, made sure there were no questionnaire response errors

because the target respondents had relevant skill, knowledge and ability to answer

the questions.

Reliability- According to Kothari (2004) he said to test reliability is another

important test of sound measurement, a measurement instrument is reliable when

provides constituent results. To ensure reliability on information collected,

Interviews were done and Questionnaires were given in one month advance and

frequent phone calls were made in order to ensure they reminded and have

adequate time to go through the same and promptly respond.

37

CHAPTER FOUR

PRESENTATION, ANALYSIS OF FINDINGS AND DISCUSSION

4.1 Introduction

This chapter presents analyzed research findings. The underlying findings included

the demographic characteristics of respondents, perception towards management

trainees program, contribution of training and development to individual staff

performance, working environment and level of satisfaction for management

trainees program and ways of improving management trainees program at KCB.

Description of quantitative findings had been expressed through tables and figures

by use of Ms. Excel computer aided spreadsheet package and Statistical Package

for Social Science (SPSS). Discussion of the findings focused on responses

gathered through interviews to key personnel from KCB head office staff.

Likewise, other information from respondents was gathered through questionnaires

posed to KCB branch staff as shown on tables 3.1 and 4.1.

4.2 Demographics Characteristics of Respondents

According to UN (2009), a thorough and professional research must encompass

some variables of world cross cutting issues. Therefore, in this study demographic

characteristic of respondents was composed of gender and age of respondents,

working experience and level of education of the respective respondents. However,

such demographic characteristic of respondents create inference on data validity

and reliability given the fact that significant information for the study would have

high degree of reliance if at all given by matured respondents, a sound exposure on

management and banking operations as well as level of education.

38

In this regard, results on table 4.1 showed that 57 percent of the respondents were

males while females comprised 43 percent. Their age range varied considerably.

There were 24 percent of respondents at the age group of 18-27, for age group

ranging 28 – 37 were 37 percent while age group 38 – 47 there were 21 percent of

respondents and age group 48 years and above were 18 percent of total

respondents.

Table 4.1: Characteristics of Respondents

Variables Frequency Percentage

Gender

Male 29 57

Female 22 43

Age

18 – 27 12 24

28 – 37 19 37

38 – 47 11 21

48+ 9 18

Working Experience

Less than 1 year 7 14

Between 2 and 5 years 11 21

More than 5 years 33 65

Level of Education

Diploma and below 14 27

Under graduate 25 50

Post graduate 12 23

Source: Research Data, 2013

Chart 1.0: shows Characteristic Respond

Source: Research Data, 2013

39

Gender as a cross cutting issue was taken into consideration in order to ascertain

gender balance in KCB management and staff in general, hence reduce research

biasness on gender. However, in this study, more respondents were males than

females.

Analysis was made on the working experience with KCB by respondents. Table 4.1

gave the results that out of 51 respondents in the study, 14 percent had less than a

year of such experience while 21 percent had experience between 2 and 5 years and

65 percent had worked with KCB for more than 5 years. Therefore, this

demographic evidenced that the study got adequate information from reliable

sources and well informed respondents as more than 50 percent of all respondents

were found to possess a sound experience with KCB operations for more than 2

years, hence knowledgeable persons in terms of KCB management operations in

general were captured.

Moreover, results on table 4.1 showed respondents’ level of education being 27

percent having diploma and below level of education while 50 percent had found to

possess undergraduate degrees and 23 percent found to posses post graduate levels

of education. Therefore, the study had more than 50 percent of respondents with

recommendable level of educated, thus information reliability from the same would

be guaranteed.

4.3 Individual Management quality considered be KCB bank when selecting

Trainees.

The below analysis aimed at obtaining the Principle geared by KCB Bank

management in obtaining management Trainees and perception of the trainees

themselves. And to see the quality management trainee they have in terms of

Academic level, working experience, level personal engagement.

Perception towards Benefits of Management Trainees Program

Prior to analyzing perception towards benefits of management trainees program,

the study ascertained existence of management trainees program at KCB, in doing

40

so, question 7 of the questionnaires aimed at confirming existence and practicing of

management trainees program was answered, whereas respondents were given

three choices (Yes, No and do not know) to confirm existence of the same.

Figure 4.1: Response on Existence of MTP at KCB

Source: Research Data, 2013

Results on figure 4.1 above indicated that respondents who said yes were 77

percent while those said no were 18 percent and those said do not know were 5

percent. In this regard, the study confirmed that management trainees program

existed at KCB as evidenced by 77 percent of respondents who said yes.

Likewise, the study through questions 8 to 10 of the questionnaire intended to

ascertain respondents who attained MTP and their pertained sponsorship, results on

table 4.2 depicted that 76 percent of respondents attained the MTP while 63 percent

were sponsored by the employer (KCB).

Table 4.2: Attributes for KCB Staff Attaining MTP

41

Attribute Responding Variable Frequency Percentage

Have you ever attained any MTP? YES 39 76%

NO 9 18%

DO NOT KNOW 3 6%

Was there any sponsorship? YES 32 63%

NO 14 27%

DO NOT KNOW 5 10%

What type of sponsorship Self 16 31%

Employer 28 55%

Family and Relatives 4 8%

Others 3 6%

Source: Research Data, 2013

On the other hand, types of sponsorship for MTP attained by respondents were

analyzed whereas 55 percent were sponsored by the employer and 31 percent self

sponsored. The study revealed further that sponsorship granted by the employer

were fully in form of seminars, workshops, on job training for new employees as

well as short and long courses. Likewise, the study found that self sponsorship by

respondents was geared to self upgrading from lower to higher degree certificates.

In this case, respondents were upgrading their selves from say diploma to first

degree up to Masters Degree level.

Moreover, the study ascertained the perception of respondents towards MTP

offered by KCB though a one way ANOVA whereas each group of respondents i.e

Head Office Staff, Branch Managers, Departmental Managers, Bank Supervisors

and Bank Trainees were asked to rank their perception towards MTP offered by the

KCB from 1 as not beneficial, 2 as not somewhat not beneficial, 3 as neutral, 4 as

somewhat beneficial and 5 as very beneficial.

Table 4.3: ANOVA- Single Factor for Perception on MTP Beneficial

SUMMARY

Groups

Count Sum

Averag

e Variance Not Beneficial 5 6 1.2 0.7 Somewhat not

Beneficial 5 11 2.2 2.7 Neutral 5 6 1.2 1.2 Somewhat

Beneficial 5 20 4 2.5 Very Beneficial 5 212 42.4 5.8

42

ANOVA

Source of

Variation SS df MS F P-value F crit

Between Groups

6506.

4 4 1626.6

630.46511

6

9.9325E

-21

2.866081

4

Within Groups 51.6 20 2.58

Total 6558 24

Source: Research Data, 2013

Results on table 4.3 indicated that among other variables tested respondents’

perception, very beneficial attained higher average of 42.4 than others. In this

regard, management trainees programs existed at KCB were found to be very

beneficial.

Question 1: What is the individual management Quality does KCB Bank Consider

when selecting Management trainee?

To answer the research question above the researcher was looking for three

variables form respondents which are individual Academic level, working

experience and level of individual employee engagement. Table 4.4 below show

percentage of responses from the questioners given to the KCB Bank Staffs.

Table 4.4 Academic level, working experience, and level of personal

engagement

Attribute Responding Variable Frequency Percentage

Diploma?

Degree?

Master

NO 9 18%

YES 39 76%

DO NOT KNOW 3 6%

Have you been working before? YES 32 63%

NO 14 27%

DO NOT KNOW 5 10%

Do you like sport and games NO 16 31%

YES 28 55%

I DON’T KNOW 4 14%

Source: Research data, 2013

43

On the other hand, types of Quality for MTP attained by respondents were analyzed

whereas 76 percent fold under degree level and 18 percent Diploma level and 6

percent were master’s level. The study revealed degree level is the most

considerable quality required by KCB Bank when selecting management trainee.

Furthermore on the side of working experience, 63% said yes while 27% said No

and 10% said they don’t know. Therefore the study reveal that, KCB Bank consider

working experience when selecting Trainee. Moreover 55% said yes while 31%

said No and 14% said they don’t know. Also the study reveal KCB bank consider a

person has good employee engagement.

Figure 4.4 response on Academic level, working experience, and level personal

Engagement

Source: Research Data, 2013

Results on figure 4.4 above indicated that respondents who said yes were 70

percent while those said no were 25 percent and those said do not know were 5

percent. In this regard, the study confirmed that the factor KCB consider when

selecting individual management quality.Has been bolded by The degree Holders,

Working experience, level of employee engagement as evidenced by 70 percent of

respondents who said yes.

4.4 The Performance Measurement of managers at KCB

44

The research used some of the Questions which intended to get answers on the

performance Measurement attained by KCB Bank Management. Like contribution

of Training and Development program on staff performance and how the

performance of Manger at KCB Bank is is measured. Then go to search for answers

on the factors which measure manager’s performance at KCB Bank.

Contribution of Training and Development on Staff Performance and

Productivity

The study analyzed the contribution of Training and Development (T&D) towards

staff performance and productivity, in so doing, respondents were firstly given

choices (YES, NO and DO NOT KNOW) to confirm the same. In this connection,

results on figure 4.2 showed that 91 percent of respondents said yes while 6 percent

said no and 3 percent said do not know. Therefore, given higher percentage (91%)

of respondents who said yes, the study ascertained that training and development

programs have direct impact or contribution towards staff performance and

productivity.

Figure 4.2: Does MTP have any Impact of Staff Performance?

Source: Research Data, 2013

45

After ascertaining whether or not T&D have any impact on staff performance,

question 13 or the questionnaire on appendix I aimed at examining the contribution

of T&D towards staff performance was effectively answered. In this connection,

various factors (contributions) were identified but due to data coding four main

factors (contributions) were identified by the same as shown on table 4.4.

Results from table 4.4 indicated that 92 percent of respondents pointed out that

training and development to staff contribute towards improving ability for decision

making by staff. The study here revealed further that training and developments

brings about increased analytical ability of staff and enhance team player and

involvement, hence make staff well informed and competent in decision making.

Question 2: How is the performance of Manager at KCB Bank is measured?

The reasecher was finding the Impact MTP on staff performance to answer the

Research question above.

Table 4.4: Impact of MTP on Staff Performance

Total Response

Respondents Percentage

Non Answer 2

Total Respondents 49 96%

Total Answers 51

Improved ability for decision making 47 92%

Increase motivation 45 90%

Improve customer service 43 86%

Enhance optimum utilization of resources 41 82%

Mean Base 51

Mean 41

Standard Deviations 2.582

Standard Error 0.154

Source: Research Data, 2013

46

Moreover, results on table 4.4 indicate again that 90 percent of respondents

identified increased motivation as one of the contribution of training and

development program towards staff performance. Through views of respondents,

the study found that staff need various forms of motivations in order for them to

perform well, therefore, among other motivations, training and development

enhance them upgrade their skills and level of education whereas in turn make

them promoted or get their salaries adjusted higher.

The study further found that 86 percent of respondents pointed out that improved

customer service as another contribution of training and development on staff

performance. In views of respondents, the study revealed that customers’ service is

the key competitive edge that a bank institution must address in order to acquire

new customers and retain the same. Therefore, investing in training and

development would enhance staff improve their product knowledge thus would be

competent to express the same to customers, in so doing, attaining higher level of

customer services that bring about more business in the bank, hence improved

performance.

However, results on table 4.4 indicated further that enhancement of optimum

utilization of resources as another contribution of training and development towards

staff performance. In respondents’ views, the study learned that when staffs are

offered training and development they get to know well the organization (KCB) in

terms of its plans and priorities particularly cost consciousness, hence the bank

attain optimum utilization of resources by its staff. Doing so, the bank would be

reducing its running cost hence increase productivity in terms of profit.

Table 4.5: KCB Performance

Parameter 2008 2009 2010 2011 2012 Average

Industry

Ranking

Growth

Percentage

Assets (Tsh Mill) 178,363 190,691 201,313 207,148 214,390 16 20%

Deposit (Tsh

Mill)

147,910 156,028 158,282 157,748 161,005 15 9%

Loans (Tsh Mill 87,201 91,331 94,442 125,992 132,201 14 52%

47

Total Revenue

(Tsh Mill)

8,514 12,017 16,030 20,659 23,400 15 175%

Branch Network 9 10 11 11 11 10 18%

Employees 219 231 246 249 253 12 16%

Average Growth Rate in all parameters 48%

Source: Research Data, 2013

In as far as contribution of KCB staff towards performance of the bank was

concerned; the study performed a five years (2008 through 2012) trend analysis

whereas, assets grew by 20 percent, deposit by 9 percent, loans by 52 percent, total

revenue by 175 percent, branch network by 18 percent and employees base by 16

percent. In average, the bank grew by 48 percent throughout the aforesaid

parameters. The study on the other hand was certain that such performance was

contributed by training and development programs offered by the bank to its

employees.

However, theoretically, training is a planned and systematic effort by which

Managements of organizations aim at altering behavior, and encouraging

employees in a direction that will achieve organizational goals. One of the key

known benefits of training is the motivation it provides those who receive it.

Indeed, employees who receive training have increased confidence and motivation.

That is, training can achieve high morale for an organization. Training is known to

increase the availability and quality of staff. The study therefore sought the opinion

of the respondents whether they feel motivated and satisfied with the training and

how it is applied at KCB.

4.5 Working Environment Suitable to Retain Managers at KCB Bank

Question 3: How is a working environment suitable to retain manager for KCB

trainee

Working environment plays a key role on the employee retention, obtaining the

good result, the researcher tested on the level of satisfaction of management trainee

program.

48

Level of Satisfaction for MTP by Staff

On its third specific objectives, the study aimed at finding out level of satisfaction

to management training program by staff. The aforesaid analysis was run through a

multiple regression analysis using Statistical Package for Social Science (SPSS)

whereas the raw data for prescribed independent variables shown on question 14 of

the questionnaires on appendix I were imputed and measured using a five point

Like scale from 1 as Very Dissatisfied (VD), 2 as Somewhat Dissatisfied (SD), 3 as

Neither Satisfied nor Dissatisfied (NSD), 4 as Somewhat Satisfied (SS) and 5 as

Very Satisfied (VS) in the following formula.

SL = a + VDX1 + SDX2 + NSDX3+ SSX4 + VSX5 + C

Whereas:

SL = Satisfaction Level (Dependent variable)

a = Intercept

X1 – X6 = Independent variables

VD = Very Dissatisfied

SD= Somewhat Dissatisfied

NSD= Neither Satisfied nor Dissatisfied

SS = Somewhat Satisfied

VS = Very Satisfied

C = Standard Error

Table 4.6: Regression Results on Level of Satisfaction for MTP

SUMMARY OUTPUT

Regression Statistics

Multiple R 0.707582

R Square 0.841059 Adjusted R

Square 0.78818 Standard

Error 0.910785

Observations 9

ANOVA

df SS MS F

Significance

F

49

Regression 4 18.17424 4.96856 691.041 0.040342

Residual 4 2.634293 0.68357

Total 8 23.80853

Coefficient

Standard

Error t Stat P-value Lower 95%

Upper

95%

Intercept 4.179043 6.939989 8.190473 3.858215 2.43079 2.788872

VD 0.26311 0.29895 0.88013 0.428491 1.09313 0.566904

SD 0.54027 0.641096 1.84272 0.134682 2.32023 1.239702

NSD 0.72782 0.497612 7.46263 0.611739 0.65377 2.109414

SS 0.65425 0.398527 64.02358 0.032635 0.75698 1.230152

VS 0.52700 0.46955 5.122371 0.914521 0.77667 1.83068

Source: Research Data, 2013

The result of the multiple regression equation produced high values of R2 = 0.841

which means the independent variables in the other words the range from Very

Dissatisfied (VD) to Very Satisfied (VS) outcome variables account in the model

for the 84.1 percent variation of the dependent variable i.e. level of satisfaction with

training and development programs at KCB.

Inferentially, the above statistical computation result means that level of

satisfaction for MTP as measured in variables of Very Dissatisfied (VD),

Somewhat Dissatisfied (SD), Neither Satisfied nor Dissatisfied (NSD), Somewhat

Satisfied (SS) and Very Satisfied (VS) accounted for the 84.1 percent variation in

the dependent variable. The larger values of f = 691.041 further depicted

significance of the independent variables in the model.

Looking on t stat and P-value results; Somewhat Satisfied (SS) portrays a highly

positive t stat 64.02358 with significant levels at P-value 0.032635. Therefore, this

entailed that KCB staff were somewhat satisfied with management trainees

program offered by the bank given its highest positive t stat of 64.02358 in the

model.

The findings showed further that KCB staff were not very satisfied (VS) with

management trainees program offered by the bank that was the most highest level

of satisfaction in the model, in this regard, the results inferred that KCB still has to

50

improve the way MTP is implemented, this would go hand in hand with allocation

of adequate budget to enhance human capital development as well as putting down

plans for systematic MTP from fresh graduates who are prepared take role and

positions in bank up to those in service who would in one way or another be

promoted to various positions be it supervisors, departmental managers to branch

managers and directors.

4.6 Content of Training Package Suitable to Suit Management Trainee

Question 4: What is the suitable content of training package to suit management

trainee?

The below analysis was done, the aim was to obtain the content of the training

package. And the strategic way of improving management trainee program at KCB

Bank.

Strategies to Improve MTP at KCB

It is undeniable fact that in recent times many organizations have come to the

realization of the importance of the role of training and development programs as it

increases the organization’s staff efficiency, skills and productivity. In order to reap

the full benefits of a training initiative, KCB adhered to the program. However,

regression results run on table 4.6 above depicted that the level of satisfaction

toward management trainees programs at KCB was somewhat satisfied inferring

that there things to be done more in order to bring such level to very satisfied. In so

doing, the study identified further factors or strategies that could be implemented

by KCB to attain the same.

Therefore, results on table 4.7 below indicating twelve main factors identified by

respondents and ranked in accordance with preferences of the same. Likewise,

respondents’ views the study revealed as enumerated on part 4.6.1 through 4.6.12.

Table 4.7: Strategic Ways of Improving MTP at KCB

Total Response

Respondents Percentage

Non Answer 4 Total Respondents 47 92%

Total Answers 51

Systematic Training 47 93%

51

Putting SMART and Unambiguous Objectives 46 91%

Adequate Information Flow to Employees 45 88%

Creating More Opportunities for Training 44 87%

Career Planning and Development 43 85%

Develop Employees through Formal Education 41 82%

Motivation and Morale 38 76%

Enrich Job Experience 37 72%

Improve Interpersonal Relationships 36 70%

Provide Psychological Test 34 66%

Evaluate Training for Effectiveness 31 61%

Use of Technology in Learning 27 53%

Mean Base 51

Mean 27 Standard Deviations 6.331 Standard Error 0.0916

Sources: Research Data, 2013

4.6.1 Systematic Training

Identification of training needs should be done more professionally in conjunction

with the line manager as well as the individuals involved together with the HR

personnel. Everyone involved should agree exactly to what the trainees are lacking,

for instance what skill is needed, and what attitudes need to be changed toward

work performance. The needs identified should emanate from KCB’s strategic plan,

which also cover departmental/sectional/teams and individual plans. KCB should

see learning, training and development as well as training’s objectives, plan,

implementation and evaluation as a continuous process for organizational

development and survival.

4.6.2 Objective should be SMART and Unambiguous

Objectives should be SMART (Specific, Measurable, Achievable, Realistic and

Timely) and unambiguous, and should develop individual as well as meet the needs

of the Ports. Objectives should also include performance targets, measures

standards and should be seen as attainable by individuals. Also a basis for

motivating through intrinsic and extrinsic rewards should be provided as this will

lead to commitment and improved performance.

4.6.3 Provide Specific Information to Employees

Performance appraisal information system which is used yearly at the KCB to

assess employees’ performance should provide specific information to employees

52

about their performance problems and ways they can improve their performance.

This assessment should provide a clear understanding of the differences between

current and expected performance, identifying the causes of the performance

discrepancies and develop action plans to improve performance of employees

through training and development programs.

4.6.4 Create more Opportunities for Training

Training needs should be considered on the basis of overall company objectives.

The goals of the company should determine what training programs are to be

organized for staff. Staff should be motivated to add value to themselves and to

their lives.

4.6.5 Career Planning and Development

Organizational career planning involves matching an individual’s career aspirations

with the opportunities available in the organization. Career pathing is the

sequencing of the specific jobs that are associated with these opportunities. For

career management to be successful in KCB, both the Authority and employees

must assume equal share of the responsibility for it. Employees must identify their

aspirations and abilities, and through counseling recognize what training and

development are required for a particular career information and training to its

employees. Development and succession planning will also play a great role.

Career progressions projection plans and training and development projections

should be made available to each employee.

4.6.6 Develop Employees through Formal Education

The KCB could develop its employees through formal education which will give

employees the opportunity to attend short courses offered by consultants or an

executive MBA and university programs which normally involve lectures by

experts, business games and simulations, adventure learning and meetings with

customers.

4.6.7 Motivation and Morale

53

Motivation generally seeks to boost employees’ morale to work hard and thus

increase productivity. It is against this fact that the researcher wishes to recommend

that in instituting proper training and development programs, KCB should initiate a

policy for motivation attached to training. Motivation include both extrinsic, such

as more pay, allowance, fringe benefits, and intrinsic such as recognition,

appreciation, acceptance by fellow workers, opportunities for promotion, career

development and consultation for important matters. Morale on the other hand

increases productivity indirectly by reducing absenteeism, accidents, employee

turnover and grievances. This means that the workforce can never develop in an

organization where there is low morale and lack of motivation because motivation

and morale leads to job satisfaction, which in turn leads to development.

4.6.8 Enrich job Experience

Most employee development occurs through job experiences. Development is most

likely to occur when there is a mismatch between the employee’s skills and past

experiences, and the skills required for the job. To be successful in their job,

employees in KCB must stretch their skills. There are several ways that job

experiences can be used for employee development in KCB and these include the

enlargement of current job, job rotation, transfers and promotion to positions with

greater challenge.

4.6.9 Improve Interpersonal Relationships

An interpersonal relationship is another way for employees to develop skills,

increase knowledge about the organization and its clients by interacting with a

more experienced member. Interpersonal relationships can develop as part of a

planned effort to bring together successful senior employees of the KCB together

with less experienced ones.

4.6.10 Provide Psychological Test

Other literatures show that organizations use psychological method to measure

employee’ skills, personality types and communication styles, for instance,

psychological test for employees’ development was that of Myers Briggs Type

54

Indicator (MBTI). The test consisted of over 100 questions about how the person

feels or prefers to behave in different situations. The MBTI identified individual

preferences for energy (introversion versus extroversion), information gathering

(sensing versus intuition), decision making (thinking versus feeling), and life style

(judging versus perceiving). Some way, KCB can use MBTI for ascertaining well

being of its employees in terms of communication, motivation, teamwork, work

styles and leadership skills of its employees. However, it should be noted that

MBTI cannot be used to appraise employees’ performance because it does not

measure how well employees’ perform their preferred functions.

4.6.11 Evaluate Training for Effectiveness

It is vital to evaluate training in order to assess its effectiveness in producing the

learning outcomes specified when the training intervention is planned, and to

indicate where improvements or changes are required to make the training even

more effective. The basis upon which each category of training is to be evaluated

should be determined at the planning stage while considering how the information

required to evaluate learning events would be obtained and analyzed.

4.6.12 Us of Technology in Learning

In this fast changing technological world, some organizations are migrating to

application of technology in management trainees programs in form of e-learning

for private studies but at the end there must be some test and qualifications be

offered. In fact this is done by a respective organization entering into strategic

alliance with a reputable higher learning Institution where the same would be

monitoring and administrating such e-learning. In Tanzania banks like CRDB Bank

Plc had adopted such system which is effective. Given the fact that KCB is an

international bank, adoption of the same would be of paramount in order to enhance

staff performance and productivity and on the same time improve banks

performance as well.

However, the study revealed further that the Bank of Tanzania (BOT) is in process

of enforcing all bank employees to be professional bankers, therefore, given time

55

and resource constraints it will not be possible for all bank staff to attend outside

professional courses at once, rather through in-house e-learning would be possible.

CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter summarizes and draw conclusions on the whole study, ascertaining the

attainment of the research questions. In this connection, recommendations for areas

needed improvement on adoption of management trainees program in raising

managers’ performance would be described together with suggested areas for future

study identified.

5.2 Summary of findings

Results on a one way ANOVA indicated that respondents perceived the

management trainees program existed at KCB as very beneficial. Contribution of

training and development towards improving staff performance and productivity

were found to improve ability for decision making, increasing staff motivation,

improving customer services and enhancement of optimum utilization of bank

resources. Likewise, results of the multiple regression analysis indicated that the

level of satisfaction on Management Trainee Program (MTP) by staff was

Somewhat Satisfied (SS) inferring that respondents were not very satisfied (VS),

thus KCB had to improve identified parameter.

The study advising KCB to embark on internal (bank wide) e-learning to enhance

all staff participate in upgrading their skill and product knowledge at once.

56

However, enforcement of management trainees programs among organizations was

suggested as areas for further studies.

5.3 Conclusion

One would recall transformation in management aspects from the fathers,

grandfathers and mother of management like Henri Fayol (1841-1925), Max Weber

(1864 – 1920), Mary Parker Follett (1868 – 1933) and Frederick Winslow Taylor

(1856 – 1915) just to mention a few, to the era of Douglas Kellner and Steven Best

as would be termed as pre-modern management through post modern management.

The aforesaid management transformations were like systemic mode,

administrative mode, and participatory mode to no management trainees programs.

Today’s’ world, business environment has been very competitive with few

identifiable differences from organization to organization. Various studies have

proved that investing in human capital would be the only competitive edge towards

surviving in the market place. In this connection, management trainees programs

had been initiated in order to prepare young graduates to effectively take role in the

banking operations as employees. And on the other hand, management trainees

programs had been applied in human resources development to plan for carrier

development. In so doing, various seminars, workshops, on job trainings,

secondment and attachment had been used by organization to prepare employees

acquire skills and knowledge for higher positions than they currently have, this

would enhance them to effectively perform their duties once and if at all promoted

to higher positions.

In this regard, the study aimed at examining adoption of management trainees

programs in raising managers performance, the case of Kenya Commercial Bank

(KCB) (T) Limited. In examining the same, the following specific objectives were

attained; to find out the qualities required by KCB Bank management when

selecting management Trainee, to find out the training package given by KCB

Bank to management trainee, to examine trainees working environment and the

57

retention strategy used by KCB Bank, last was to find out performance

measurement used by KCB Bank to managers

The study would be significant in number of ways such that enhancing the

researcher to fulfill the requirements for the award of Masters Degree. Likewise,

KCB would be ascertain the perception and level satisfaction for the management

trainees program implemented and take on board strategies given to improve the

program. However, management trainees program is still new management still,

thus results of the study would enhance more organization apply the same and so to

scholars would explore more studies on the issues pertaining with management

trainees programs.

In attaining the aforesaid specific objectives, the study applied a descriptive case

study research design. Simple random and purposive sampling techniques were

used to choose the sample frame. In this case, the study was carried out at KCB

Bank (T) Limited and a sample size of 51 respondents participated effectively

whereas 13 were from KCB head office, 9 Branch Managers, 10 Departmental

Managers, 9 Bank Supervisors and 10 Bank Trainees. Likewise, interview,

questionnaires and documentary guide were used as data collection methods. Data

were analysed through Statistical Package for Social Science (SPSS).

The study ascertained that management trainees programs existed at KCB where

number of staff had been attained the same under employer’s sponsorship.

Likewise, other staff took initiatives to upgrade themselves to earn higher diploma

and degree certificates. However, results on a one way ANOVA indicated that

58

respondents perceived the management trainees program existed at KCB as very

beneficial.

Contribution of training and development towards improving staff performance and

productivity was analyzed whereas improve ability for decision making, increasing

staff motivation, improving customer services and enhancement of optimum

utilization of bank resources were ascertained as the contribution. In so doing, a

five years (2008 through 2012) trend analysis depicted that KCB grew by 48

percent in six parameters such assets, deposit, loans, total revenues, branch network

and employee base.

The study run a multiple regression analysis in determining the level of satisfaction

for the management trainees programs implemented. In this connection, results

showed a highly positive t stat 64.02358 with significant levels at P-value 0.032635

at Somewhat Satisfied (SS) variable. Therefore, the study inferred that respondents

were not very satisfied (VS) with management trainees program offered by the

bank. Therefore, KCB had to improve various issued pertaining to management

trainee programs like allocation of adequate budget to enhance human capital

development as well as putting down plans for systematic MTP from fresh

graduates who are prepared take role and positions in bank up to those in service

who would in one way or another be promoted to various higher positions be it

supervisors, departmental managers to branch managers and directors.

59

However, strategies to improve management trainee program at KCB were as well

identified whereas systematic training, putting SMART and unambiguous

objectives, adequate information flow to employees, creating more opportunities

for training, career planning and development, developing employees through

formal education, motivation and morale build, enriching job experience,

improving interpersonal relationships, providing psychological test, evaluating

training for effectiveness and use of technology in learning were identified as the

strategies.

5.3 Recommendations

Basing on the research findings, the following were recommended.

5.3.1 KCB Bank (T) Limited

The study identified number of strategies the bank would adopt in order to improve

implementation of the management trainees program. In so doing, the study is

hereby advising the bank to use available technologies like entering into strategic

alliance with reputable higher learning institutions to offer internal e-learning (bank

wide) in order to improve employees skills and product knowledge and at the end

learning provides certification as qualified banker which is Bank of Tanzania

requirement in the near future.

5.3.2 Employees

The study found that some employees took initiatives to upgrade themselves to

higher diploma and degree. The study still encouraging those employees with

ability and chance to take up various banking and management courses in order to

60

increase knowledge and skills and at the same time putting oneself in a better

position at the labour market, thus becoming competitive where in turn would earn

higher employment remunerations. In doing so, motivation and work morale would

be boosted, hence improved performance at both sides of the employee and the

bank in general.

5.3.3 Policy Makers

Management trainee program was found to be a newly established management

method, in real sense, it enhance product knowledge, customers service and

preparation for good and result oriented future managers. Again, management

trainees program would be used as a tool for reducing unemployment, given the

fact that young graduates on one part would be trained on specific job they studied

for, hence improving their experience and make them employable. In this case, the

study is hereby advising policy makers to take advantage of the same and

incorporate in relevant policies.

5.4 Areas for Future Studies

Basing on research findings, enforcement of management trainees programs among

organizations, comparative study of management trainee programs and application

of management trainee programs in government entities were suggested as areas for

further studies.

61

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www.kcbbankgroup.com/tz

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APPENDICES

Appendix I: Questionnaires

Please tick (√) in the appropriate box provided.

1. What is your gender?

(i). Male ( )

(ii). Female ( )

2. What is your age range?

(i). Below18 ( )

(ii). 18 – 35 ( )

(iii). 36 – 54 ( )

(iv). 55 – 60 ( )

(v). 61+ ( )

3. What is your education level?

(i). Primary ( )

(ii). Secondary ( )

(iii). Undergraduate ( )

(iv). Post graduate ( )

(v). Others ( )

4. What is your professional?

(i). Marketing ( )

65

(ii). Law ( )

(iii). Accounts and Finance ( )

(iv). Banking ( )

(v). Business administration ( )

5. Which branch are you working for?

(i). Head office ( )

(ii). Dar es Salaam Branches ( )

(iii). Upcountry Branches ( )

6. What position range are you holding?

(i). Front office officer ( )

(ii). Lower level management ( )

(iii). Middle level management ( )

(iv). Top level management ( )

(v). Others ( )

7. Does management trainees program practiced at KCB?

(i). YES ( )

(ii). NO ( )

(iii). Do not know ( )

8. Have you ever attained any management trainees program?

(i). Yes ( )

(ii). No ( )

(iii). Do not know ( )

9. Was there any sponsorship?

(i) Yes ( )

(ii) No ( )

(iii) Do not know ( )

10. What kind of sponsorship was it?

66

(i) Self ( )

(ii) Employer ( )

(iii) Family and Relatives ( )

(iv) Others ( )

11. Rank the perception of management trainees program from 1 as not beneficial

to 5 as very beneficial?

(i). Not beneficial ( )

(ii). Somewhat not beneficial ( )

(iii). Neutral ( )

(iv). Somewhat beneficial ( )

(v). Very Beneficial ( )

12. Does Training and Development have any contribution to individual

performance?

(i) Yes ( )

(ii) No ( )

(iii) Do not know ( )

13. If yes on 12 above what would be such contributions …………………………..

14. Please rank the level of satisfaction with management trainees program in

place from 1 as very unsatisfied to 5 as very satisfied

(i). Very dissatisfied ( )

(ii). Somewhat dissatisfied ( )

(iii). Neither dissatisfied nor satisfied ( )

(iv). Somewhat satisfied ( )

(v). Very satisfied ( )

15. In your own opinions how would you suggest ways to improve management

trainees programs?

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THANK YOU FOR YOUR COOPERATION