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BY
CHRISTINE MAKENA
DIANA CHEROTICH
STEPHEN NGUGI
GARRET ADHIAMBO
REBECCA KIBET
AUGUST 2015
DECLARATION
This research project is our original work and has not been presented for a degree at any other
university for examination.
Signature Date
CHRISTINE MAKENA
DIANA CHEROTICH
STEPHEN NGUGI
GARRET ADHIAMBO
REBECCA KIBET
This research project has been submitted for examination with my approval as the University
Supervisor
Signature Date.
Name
ii
TABLE OF CONTENTS
DECLARATION...........................................................................................................................ii
CHAPTER ONE............................................................................................................................1
INTRODUCTION.........................................................................................................................1
1.1 Background to the Study........................................................................................................1
1.1.1 Employee Training and Development.............................................................................2
1.1.2 Employee Performance...................................................................................................3
1.1.3 Airtel Kenya....................................................................................................................4
1.2 Research Problem..................................................................................................................5
1.3 Research Objective................................................................................................................7
1.4 Value of the Study..................................................................................................................8
CHAPTER TWO...........................................................................................................................9
LITERATURE REVIEW..............................................................................................................9
2.1 Introduction............................................................................................................................9
2.2 Theoretical Foundation..........................................................................................................9
2.2.1 Human Capital Theory....................................................................................................9
2.3 Employee Training and Development..................................................................................10
2.4 Employee Performance........................................................................................................13
2.5 Effect of Employee Training and Development on Performance........................................14
CHAPTER THREE.....................................................................................................................18
RESEARCH METHODOLOGY...............................................................................................18
3.1 Introduction..........................................................................................................................18
3.2 Research Design...................................................................................................................18
3.3 Population of the Study........................................................................................................18
iii
3.4 Sample..................................................................................................................................19
3.5 Data Collection....................................................................................................................19
3.6 Validity and Reliability.........................................................Error! Bookmark not defined.
3.7 Data Analysis.......................................................................................................................20
REFERENCES............................................................................................................................21
APPENDIX I: QUESTIONNAIRE............................................................................................26
iv
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Human resources are crucial element of the resources that an organization deploys in the pursuit
of its objectives. According to Noe (2002), all other resources that an organization uses are nonliving with the exception of human resources, which are live and generating resources. Without
human resources, the other resources that an organization possesses may not be of significant
use. The integral role played by human resources in ensuring that all other organizational
resources are deployed effectively underscores the importance of prudent human resource
management within the organization. A highly performing workforce translates into superior
performance for the organization on the one hand, whereas poorly motivated employees are
unlikely to work at their optimum productivity. The latter can be detrimental to organizational
performance in general. A key aspect of the human resource management function is the
facilitation of employee training and development (Griffin and Moorhead, 2011).
Employees require skills that enable them to be effective in carrying out the tasks that their jobs
require in the workplace. These skills are dependent on a number of factors, including, but not
limited to; the specific nature of the job that an employee handles, configuration of various
activities within the organization and developments in the organizations external environment
that may create new demands regarding the outcome expected of an employees job (Kotey and
Folker, 2007). If an organization has to achieve its goals, it is then inevitable that the employees
must be skilled as appropriate. Training activities help in imparting the requisite skills that are
needed in employees. In addition, the tendency of the organizations environment to change from
1
time to time makes it necessary for the employees skills set to be dynamic, hence the need for
employee development.
organizations environment make it necessary to reorient the skills and competencies of the
employees so that the organization remains on track towards realizing its goals. The adaptation to
changes taking place in the organizations environment is facilitated through employee training
and development (Aguinis and Kraiger, 2009).
While training involves learning activities that are focused on the acquisition of specific skills
that are related to a particular job, development is long term in its orientation (Noe, 2002).
Development encompasses the continuous expansion of a workers abilities, skills and
knowledge with a view of attaining long-term growth and advancement in ones career. (Hameed
and Waheed, 2011) notes that development is an educational process whereby an organizations
personnel find a chance to explore the depth and breadth of the theoretical knowledge on which
their career is founded, and the applicability of such knowledge to the concerns of their jobs.
Mastery of the theoretical knowledge and its applications enables them to attain personal career
growth over the long term. Some of the methods used in personnel development include; rotating
employees across different jobs within the organization, mentoring and counseling of junior
personnel by workers who are senior and are in possession of more experience, involving
employees in special projects and participation in regular seminars and conferences (Noe, 2002).
which they can deliver on the tasks relevant to their jobs, an increasing sense of loyalty to their
organization, commitment to the realization of the broader goals of the organization and
increased incentives in terms of rewards for desirable output (Griffin and Moorhead, 2011).
Employee performance is measured in terms of input-output relationship. It is the measure of the
efficiency with which inputs or resources are utilized to create outputs. Performance is employee
productivity (Kotey and Folker, 2007). Performance depends on the skills and competencies
possessed by the employees. The skills demanded of workers may change as circumstances
surrounding the organization change, creating the need for a performance management system.
Performance management systems are aimed at a strategic and integrated improvement in the
effectiveness of an organization through enhancing the performance of the workers and
developing their capabilities as appropriate. Training and development of the employees is aimed
at improving their performance, through helping them to develop core competencies and skills.
based in Nairobi, Kenya with store locations in Sarit, Mombasa, Kisumu, Eldoret, Nyeri, and
Nakuru, Kenya. As of May 26, 2004, Airtel Kenya Limited operates as a subsidiary of Bharti
Airtel International (Bloomberg Business, 2015).
Airtel Kenya because is the second major operator in Kenya and major competitor to the market
leader Safaricom ltd. Thus, being one of the major telecommunication firms in Kenya it should
delevop an effective human resource team to ensure its remains competitive. This is because
well-trained and developed employees when fully utilized by the employing organization
benefits it as well the employees themselves. Therefore, telecommunication firms to grow and
survive in todays globally competitive and fast changing environment especially in the
technology. There would be the need for the firms to come up with systems and programmes that
would bring out of their need efforts, attention, and creativity and general innovations as
individual employees and as groups or teams of network (Bediako, 2008).
increased of hiring new employees which pushes down the organizational profitability
(Rajeswari and Palanichamy, 2014).
In Kenya, the telecommunication industry has witnessed remarkable growth in the last few years.
Mobile phone penetration increased from 60 per cent in 2010 to over 77 per cent in 2013, with
subscribers now standing at over 30 million. However, this growth has brought with it many
challenges to the human resources. The telecommunication industry is technology based and to
compete effectively the firms in this sector must continuously innovate and develop new
products and services. These innovations require continuous employee training and development
to ensure that the employees are up to date and informed. Thus, it would be essential to
investigate the perceived effect of employee trainee and development on employee training at
Airtel Kenya.
Numerous studies have been carried out internationally and locally on the employee training and
development and its perceived effect of employee performance. Internationally, Gamage and
Imbulana (2013) examined the effect of the training and development on the employees
performance at the Call Center staff of the Sri Lanka Telecom and established that that there is a
significant positive relationship between training and development and the employee
performance. In addition, Boadu et al. (2014) studied training and development as a tool for
employee performance in the district assemblies in Ghana and established that their direct
relationship between training and development and employee performance and there exist a
significant relationship between training and development and job satisfaction. However, the
study was carried out in different localities and different organizations hence the study findings
may not be generalized to the Kenyan context.
Locally, Amadi (2014) examined the effect of training and development on employee
performance at the Safaricom Call Center, Nairobi and revealed that that training and
development has a positive impact on both motivations of employees as well as performance.
However, the study focused on the call center employees as opposed to all employees working at
the firm. Onyango and Wanyoike (2014) assessed the effect of the training on the performance of
staff in the public health institutions in Kenya and found that there exist a strong positive
relationship between training of employees and performance however, the study focused on
public health institutions hence the findings could not be generalized to the telecommunication
industry. Achieng, Ochieng, and Owuor (2014) also surveyed job redesign practices in
commercial banks and their influence on the performance of employees. It was established that
the identity, variety and significance of job tasks had an impact on the performance of
employees, whereas task autonomy did not affect their performance.
While these studies may provide insight on how human resource management strategies are
likely to affect employee performance in various organizations they do not specifically address
the issue of how employee training and motivation impacts employee performance. Further, the
studies conducted examining employee training and development in other organizations have
limited generalizability, considering the fact that they were conducted in particular geographical
regions. This leads to the question; how does employee training and development affect
employee performance of Airtel Kenya?
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter presents the theoretical foundation, a review of training and development, a review
of employee performance and a review of past studies on employee training and development
and performance as advanced by various authors.
capital field (Bratton and Gold, 2007). In addition, not only an employees productivity but
also other employee characteristics are also affected by the investment of human capital. for
instance, through participating in leaning activity, the learning participators are likely to
easily implement job - seeking activities with increasing the human capital. Further, the
theory of human capital points out that the investment of human capital affects national
economic growth since high employee productivity means high production for the nation as well
(Mwesigwa, 2010). Thus, training of employees at all levels within an organization is a vital
component in maintaining the competitiveness in an international arena.
The changes in the demand for particular occupations have also made talent management a
strategic imperative for firms if they wish to remain sustainably competitive.
Training is usually accomplished using presentational, hands-on and group building training
methods (Noe, 2002). In training using presentation methods, the trainees receive information
passively. The information relates to methods applicable in problem solving, facts and processes
that are related to the tasks that the trainees carry out when performing their jobs. Several
approaches can be used in delivering the content that the trainers wish to impart on the trainees.
They include, but not limited to; the use of games, delivery through lectures, workbooks and
manuals. Lectures are a one-way communication by means of spoken words (Gainey and Klaas,
2003). The trainees communicate to the trainers what they intend to have them to learn. There
are several variations of the lecture; a single trainer may talk to trainees; more than one trainer
may make presentations of different views of a particular topic in which training is being done.
In addition, guest speakers, panels and student presentations are other approaches that may be
used when training takes the form of lectures. Apart from lectures, another approach while using
presentational methods may involve the use of audiovisual techniques (Kotey and Folker, 2007).
A common instruction approach using audiovisual techniques is the video. Trainees learn by
watching videos of lectures. In some cases, the trainees engage in a discussion about their
perceptions of various aspects of the information that has been delivered in the video.
Hands-on training methods are a sharp contrast to presentational methods. While employees take
a passive role in learning when presentational methods are being used, the role that they play is
increasingly an active one when it comes to hands-on training methods (Chew and Chan, 2008).
Hands-on training can take the form of on-the-job training, behavior modeling, role plays, case
studies and simulations (Caligiuri, 2006). On the-job, training is common when employees are
11
faced with a new work environment or context. As such, they familiarize themselves with the
tasks that their jobs entail by observing their peers who are more experienced and skilled
performing the job for which they are being trained. They then attempt to mimic the behavior of
their seniors. A variant of the on-the-job training method is training through self-directed
learning (Noe, 2002). Trainees learning through the self-directed approach take responsibility for
all aspects of their learning. They pursue knowledge of content that has been predetermined at
their own pace. Behavior modeling is more common when employees need to be trained in
certain behavioral skills rather than information. A model is presented to the trainees. The model
demonstrates the behaviors that the trainees are to learn. The trainees observe the behavior and
are allowed to put their observation into practice. In role-plays, the trainees are assigned
characters, which they act out whereas in simulations, trainees are presented with situations that
happen in real-life contexts, and that require their decisions.
The other category of training methods is the group building methods. These methods differ from
the preceding ones already discussed, given that they are aimed at enabling the trainees to
develop team-working skills. Methods involved in building of groups include adventure learning,
team training and action learning (Noe, 2002).In adventure learning, structured activities form
the basis for the development of an individuals leadership skills and the ability to work
effectively in a team setting. The members of a team participate in the structured activities.
Through their participation in the structured activities, group members are able to practice how
to coordinate the activities within a group so as to maximize effectiveness in the achievement of
group goals. In team training, individuals work together in a team towards attaining a common
goal. The individuals performance is coordinated so that synergies are created, with the result
that optimal results are obtained. The aspects of the teams performance that are coordinated
12
include the team members knowledge, attitudes and their behavior. These aspects provide the
team members with the capabilities that they need to competently work toward the realization of
the teams goals. Action learning entails having the team members work on actual problems or
issues that are typical of the workplace. Team members develop the plans that will guide them in
solving particular problems. They are then required to follow through their plans.
responsibilities assigned to them are executed timely and diligently. Also, with strong bonds with
their organization and employer, the employees are more assured of the security of tenure. In
turn, they will focus less attention on the possible lucrative opportunities outside their
organization, and exert much of their effort towards the success of their organization (Auer and
Antoncic, 2011).
The absence of growth opportunities within the company contributes to a career plateau
(Chiaburu et.al, 2013). When an employee is faced with a situation in which their careers are not
making progress, their intentions to quit become enhanced. A majority of employees get into jobs
hoping to attain upward mobility in the job positions that they hold. As time progresses, they
obtain additional skills and knowledge that are related to the performance of their job. Training
and development programmes help in accelerating the upward mobility of an employee in their
career. Through mentorship and coaching relationships, employees do not have to hold a given
job for a long period in order to master the competencies that are required for effective delivery.
Thus, it is important that training and development is offered to employees if their turnover has
to be kept to minimum levels possible. Low employee turnover can assist the employees to
enhance their performance levels. With low turnover, experienced employees are likely to be
always available to provide guidance and direction to those new on the jobs.
Companies that place a lot of emphasis on employee training and development have been found
to perform better, overall. Learner (1986) established organizational cultures that were more
oriented towards continuous learning and high ethical standards had an association with high
levels of performance. Continuous learning and ethical practices are most beneficial when they
get entrenched in most facets of the organization. Cultures in which continuous learning is
emphasized provide an ideal context for training and development programs to thrive. With
15
continuous training and development of the employees, an organization finds itself in a better
position to address the needs of all the stakeholders; from customers to the shareholders. In the
long run, the organization will manage to retain the support it needs for its well being. Also, the
financial performance will improve significantly. With high levels of financial performance, an
organization can manage to attract and retail highly talented workers by offering them attractive
perks and career growth prospects.
Most workers in todays organizations are confronted with the feeling that they need to sell their
credentials, which brings with it devastating effects (Laud and Johnson, 2012). In their quest to
build their images by means of career advancement, workers are left with little time to pursue
activities that will bring them self fulfillment. When employees are trained and developed on a
continuous basis, the feeling that opportunities for personal fulfillment have not been provided
for them tends to be eliminated. Organizational programs that lay emphasis on the continuous
development of the employees enhance the self-esteem of the employees. As such, employees
feel more appreciated by their organization, and will tend to be more satisfied in their jobs.
Satisfied employees will take a leading role in helping an organization to achieve its goals. They
strive to do more with less, and carry out the roles assigned to them dutifully. Eventually, they
are able to achieve high levels of performance, all for the benefit of the organization.
Kiweewa and Asiimwe (2014) examined the implications of training on employee performance
in regulatory organizations in Uganda. The study established that training and development had
significant influence on employee performance thus; organizations should constantly search for
ways to remain competitive. Appiah (2010) also the impact of training on employee performance
in Ghana and established that the objective of training programs is to improve both individual
16
and organizational performance thus every employee no matter their educational background or
level within the company had benefited from the in house training program.
Ngugi (2014) investigated the relationship between managers training and development and
employee performance in Geothermal Development Company. The objective of the study was to
find out the relationship between training and development and employee performance in
Geothermal Development Company. The study found out that training and development is
important in influencing employee performance. Organizations should pay attention to this and
include staff training and development as one of the strategies in ensuring achievement of
employee performance. Otuko et al (2013) assessed the effect of training dimensions on
employee performance, a case of Mumias Sugar Company, Kenya. The study findings
established that there was a positive and significant effect between training needs assessment and
employee performance in Mumias Sugar Company Limited. Training contents were found to
have a positive and significant effect on the employee performance in Mumias Sugar Company
Limited and training evaluation and employee performance were positively and significantly.
17
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the research design, the population of the study, the sample size, data
collection procedure, validity and reliability and finally data analysis technique.
18
conclusions. The population of interest will comprise all the 318 employees of Airtel Kenya head
office in Nairobi.
3.4 Sample
A sample is the segment of the population that is selected for investigation (Chandran, 2004). A
sample of 95 employees will be used for the study. The sample is 30% of the total population as
recommended by Mugenda and Mugenda (2006) that a sample of 10-30% is adequate if properly
selected. The size chosen is also a factor of available time and resources to carry out the research.
Simple random sampling technique will be used to select the sample size. Simple random sample
gives each respondent a random chance of being included in the study.
Table 3.1 Sample size
Category
Population
Ratio or 30%
Sample size
15
30%
30
30%
45
30%
14
Other employees
99
30%
30
Total
318
30%
95
drop and pick method is considered suitable since it will give the respondents adequate time to
discuss, understand and respond to the questions therein.
20
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Performance in Commercial Banks in Kisumu, Kenya. Greener Journal of Business &
Management Studies. 4 (4) 115-137.
Aguinis, H., & Kraiger, K. (2009). Benefits of training and development for individuals and
teams, organizations, and society. Annual review of psychology, 60, 451-474.
Akala, H. S. (2012). Factors Influencing Employee Retention among the Nonteaching Staff at the
University of Nairobi, Kenya. Unpublished Project. University of Nairobi.
Amadi, E. J. (2014). The Effect of Training and Development on Employees Performance; at
Safaricom Limited Call Centre. Unpublished Project. University of Nairobi.
Appiah, B. (2010). The Impact of Training on Employee Performance: A Case Study of HFC
Bank (Ghana) Limited. Unpublished Thesis. Ashesi University College, Ghana
Auer Antoncic, J., & Antoncic, B. (2011). Employee satisfaction, intrapreneurship and firm
growth: a model. Industrial Management & Data Systems, 111(4), 589-607.
Bediako, K. (2008). Professional Skills in Human Resource Management. 2nd ed. Windy Hill
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Bloomberg Business. (2015). Wireless Telecommunication Services: Company Overview of
Airtel
Kenya
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Accessed
online
on
13/8/2015
from
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=12072429
21
Boadu, F., Dwomo-Fokuo, E., Boakye, J. & Kwaning, C. (2014). Training and Development: A
Tool for Employee Performance in the District Assemblies in Ghana. International
Journal of Education and Research, 2(5), 513-522
Bratton, K. and Gold, T. (2007). Human Resource Management: Theory and practice 4th edition
Newyork: Palgrave Macmillan.
Caligiuri, P. (2006). Developing global leaders. Human Resource Management Review, 16(2),
219-228.
Chandran, E. (2004). Research Methods: A Quantitative Approach with Illustrations from
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Chew, J., & Chan, C. C. (2008). Human resource practices, organizational commitment and
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Chiaburu, D. S., Diaz, I., & De Vos, A. (2013). Employee alienation: Relationships with
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22
Gainey, T. W., & Klaas, B. S. (2003). The outsourcing of training and development: Factors
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Gamage, P. N. & Imbulana, L. (2013). Training and Development and Performance of
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24
25
APPENDIX I: QUESTIONNAIRE
Dear Respondent,
We are students from the University of Nairobi carrying out a study on the perceived effects of
employee training and development on employee performance at Airtel Kenya. The information
given here will be purely used for academic purposes and will be treated with strict
confidentiality. Kindly provide the data requested.
Your cooperation will be highly appreciated. Thank you.
Section A: Demographic Information
1. Gender
Male
Female
11-15 years
[ ]
6-10 years
More than 15 years
Finance
Marketing
Others, specify .
26
No
No idea
Often
[ ]
Rarely
Never
[ ]
Delegation
Empowerment
Others
7. How effective are training and development strategies used by your organization
Very effective
Effective
Less effective
] Not effective [
Effective
Less effective
] Not effective [
9. How often does your organization review it training policies and programs?
Very often
Often
[ ]
Rarely
27
Never
10. How would you rate your managers commitment towards employee training and
development?
Excellent
Good
Average
[ ]
Poor
No
No idea
.
12. Does employee training and development enhance the productivity of employees?
Yes
No
No idea
No
No idea
No
No idea
No
No idea
16. How would you rate your firm performance due to employee training and development?
Excellent
Good
Average
28
[ ]
Poor
17. Apart from improved employee performance, indicate other benefits associated with
employee training and development?
29