CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Induction is a very important part of the employment process and one that can easily get overlooked in a small, busy organization where everyone is working at full capacity. Induction has become a key concern in the area of improving work processes, employee morale and satisfaction. As such, it challenges organizations both to identify its merits and to comprehend the interplay between induction and job effectiveness. Therefore, the impact of an effective induction programme cannot be overlooked.
According to Peloyahae (2005) starting a new job is considered to be one of the most stressful life experiences and a proper induction process that is sensitive to the fears and uncertainties, as well as the needs of an employee, is therefore of the utmost importance. An induction programme helps newly appointed employees to integrate into the organization work processes with minimum difficulty, by acquainting them with the details and requirements of the work (Grobler, Warnich, Carrell, Elbert and Hartfield, 2002). It also serves as a support system for those workers who have worked in the organization for a longer period. In this regard, Van Deventer and Kruger (2003) see induction as a continuous process that begins when an employee accepts an appointment to a post and continues throughout his/her duty. Thus, the management of an induction programme is critical for effective organizations. Bartell (2005) defines the induction period as the time in which a newly appointed employee becomes more familiar with job responsibilities, work settings and professional norms and organized plan for support.
Induction is defined by Byars and Rue (2000) as the introduction of new employees to the organization, their work units and their jobs. Employees receive induction from co-workers both planned and unplanned from the organization in which new employee learn how to function efficiently within a new organizational culture by obtaining the information, values and behavioral skills associated with his or her new role in the organization.
The effect of training on employee’s efficiency, productivity and organization performance has attracted considerable interest in the analytical and empirical literature. On the whole, human resources management theory has paid considerable attention to this debate; however, the theoretical predictions are ambiguous. Depending on their underlying assumptions, some approaches predict that the performance of an organization is necessarily based on innovative labour force, technology, quality management, and customer satisfaction [Dhamodharan et al. 2010]; while others see training as a tool in the hands of human resources managers to activate and empower the productive base of an organization [Dhamodharan et al. 2010].
Employee training is very vital to job productivity and organization performance since the formal educational system does not adequately provide specific job skills for a position in a particular organization. While, few individuals may have the requisite skills, knowledge, abilities and competencies needed to fit into a specific job function, some others may require extensive training to acquire the necessary skills to be able to fit in a specific job function and also make significant contribution to the organization’s performance.
The human capital theory provides evidence which indicates that training and education raises the productivity of workers by imparting useful knowledge and skills, hence raising workers’ future income by increasing their lifetime earnings. Becker (1994) and Mincer (1974) also provide an explanation that links investment in training with workers’ wages. In particular, their theory draws a crucial distinction between general education and firm specific training, and recognized training and human development as a basic skill provided for higher productivity of a worker. Training has the distinct role in the achievement of an organizational goal by incorporating the interests of organization and the workforce [Stone, 2002].
Goldstein [1980] defined training as the systematic acquisition and development of the knowledge, skills, and attitudes required by employees to adequately perform a task or job or to improve performance in the job environment. This implies that for any organization to succeed in achieving the objectives of its training program, the design and implementation must be planned and systematic, tailored towards enhancing performance and productivity. Similarly, Cascio (1989) sees training as consisting of planned programs designed to improve performance at the individual, group and/or organizational levels.
Onasanya defines training as a form of specialized education aimed at giving the trainee a particular or specialized knowledge, skill and attitude which he must possess to effectively perform in a given position while development is concerned with specific programmes designed to prepare and groom a worker with particular education and training for higher responsibilities.
Training has been an important variable in increasing organizational productivity. Many researchers (for instance Colombo & Stanca, 2008) showed that training is a fundamental and effectual instrument in successful accomplishment of the firm’s goals and objectives, resulting in higher productivity. Training builds a team that is effective, efficient and well motivating, thereby enhancing the confidence and self-esteem of employees. The employees’ knowledge and skills are thus developed to adapt to new technologies and other organizational changes. Training also creates chances for the promotion of employees to replace those who have left the organization. Indeed, the benefits of training are innumerable.
Colombo et.al also state that one of the potent factors militating against the good performance of employees is inadequate training [Colombo & Stanca, 2008]. An employee may have the ability and determination, with the appropriate equipment and managerial support yet such employee may be underproductive. The missing factor in most cases according to Adeniji (2002) is the lack of adequate skills, and knowledge, which are acquired through training. Adeniji further stated that training reduces employee turnover and promotes goal congruency, while lack of training increases absenteeism rate, low output, poor quality and results in high unit cost [Adeniji, 2002].
1.2 Statement of the Problem
Observations and different researches have shown a concern on the challenges experienced by new workers within an organization. New workers may join an organization and may not have the knowledge of the organization goal and objectives; the problem is that some of them are not aware of what is expected of them, they are ignorant about the nature of their job and may not be able to stand the demands of the job, thereby resulting into resignation. These challenges arise from lack of an effective induction programme within an organization or the induction is not effective to the new workers. The induction programme needs to focus more on the strategic aims of an organization and the personal growth of the worker. These constraints have resulted in poor productivity among employees due to the fact that they were not properly inducted into the organization. An induction programme is the process used within many businesses to welcome new employees and prepare them for their new role.
Despite the importance of induction and training in employee efficiency, productivity and organizational performance, training programs are not sufficiently supported by organizations in Nigeria. These organizations consider the money they will spend on their training programs as waste rather than investment. They fail to foresee the desirability of continuous training and development of their employees in order to promote the efficiency and effectiveness of their organizations. Those that attempt to conduct trainings for their employees do so in an ad-hoc and haphazard manner, and as such, training in those organizations is more or less unplanned and unsystematic. This view is corroborated by Nwachukwu (1988) who argued that many employees have failed in organizations because of lack of basic training.
Furthermore, there is a general consensus that a relationship exists between investment in training and efficiency and productivity. While some studies have provided evidence of positive and sizeable returns on human capital investments, others have documented negative evidence. Again, despite the significance of training, the outcomes of studies conducted in this area generally differ considerably from country to country and from period to period. For instance, while Harel (1999) found that training and development practices had positive relationship with firms ‘performance in public and private sectors in Isreal, while Itami (1987) in their study in Korea did not find any association between training, efficiency and development and business performance. Consequently, the inconsistency in the existing empirical evidence makes it imperative to provide further empirical evidence on the impact of induction and training programe on workers’ efficiency, productivity and organizational performance in Nigeria.
1.3 Objectives of the Study
The study sought to assess staff induction and training programme as a means of promoting workers’ efficiency. Specifically, the study sought to;
1. examine the relationship between induction and training programme and workers’ efficiency;
2. ascertain if induction and training programme enhance workers’ efficiency and productivity in Nigeria;
3. ascertain if induction and training programme improve organizational performance in Nigeria.
1.4 Research Questions
1. What is the relationship between induction and training programme and workers’ efficiency?
2. Does induction and training programme enhances workers’ efficiency and productivity in Nigeria?
3. Does induction and training programme improves organizational performance in Nigeria?
1.5 Research Hypotheses
Ho1: There is no relationship between induction and training programme and workers’ efficiency.
Ho2: Induction and training programme does not enhance workers’ efficiency and productivity in workers.
1.6 Significance of the Study
The study is a relevant theme as the success of an organization depends on an effective induction and training programme.
It is expected that this study will be of immense benefit to the Management and employees of banks and other organizations as well as the government, policy makers, academicians, consultants, and other researchers in the field of human resources management in Nigeria. For instance, this study will provide vital information to managers in the banking sector that would encourage employee motivation and job satisfaction. It will also be relevant to the human resource development department in the formulation of policies relating to training and development of personnel that will help to develop and maintain a quality work life, which will enhance employee job satisfaction and self-actualization. As part national planning strategy, this study will assist the government to identify those areas where it can be of assistance to corporate bodies in Nigeria with respect to human capital development. Consultants to banks on human resources management will also find this study useful as a good reference material. Above all, this study would assist in expanding the scope of existing literature on worker/employee efficiency, productivity and organizational performance in Nigeria.
1.7 Scope/Limitations of the Study
This study is on staff induction and training programme as a means of promoting workers’ efficiency. This study will focus on First Bank of Nigeria (FBN) Plc in Enugu, Nigeria. Our choice of FBN Plc is informed by the fact that it has a large number of employees and it has survived the so called harsh operating environment in Nigeria and has continued to dominate the Nigerian banking industry.
Limitations of study
1. Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 Definition of Terms
Induction: The action or process of inducting someone to a post or organization.
Induction Program: An induction programme is the process used within many businesses to welcome new employees to the company and prepare them for their new role. It helps in the effective integration of the employee into the organization. It provides an introduction to the working environment and the set-up of the employee within the organization. The process will cover the employer and employee rights and the terms and conditions of employment.
Training: Training is teaching, or developing in oneself or others, any skills and knowledge that relate to specific useful competencies. Training has specific goals of improving one’s capability, capacity, productivity and performance.
Employee Training: It is a program that helps employees to learn specific knowledge or skills to improve performance in their current roles.
Worker: A person who does a specified type of work or who works in a specified way.
Efficiency: In a more general sense, it is the ability to do things well, successfully, and without waste.
