INFLUENCE OF DEVELOPMENT PROGRAMMES OF EMPLOYEE PRODUCTIVITY IN SMALL AND MEDIUM ENTERPRISES IN UMUAHIA METROPOLIS

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Training and development of employees is among one of the tools of competitive advantage of organizations. Economic process has place incessant pressure on small and medium enterprises (SMEs) for them to adapt to alter in order that they will stay competitive (Fassoula, 2015). This suggests that small and medium enterprises ought to train and develop their workers in a very bid to satisfy each to meet both national and international challenges. As noted by Oforegbunam and Okorafor (2010), any attempt to prepare workers for the delicate demands of the 21st century ought to be joined with constant coaching and development packages. Rothwell and Benkowski (2016) additionally intimate the requirement to take care of reputable human capital is met through talent differentiation, enhancing worker motivation, and higher focus on employee training and development. Training and development is, thus, very critical to an organization because once workers are equipped with requisite skills, they are bound to produce quality goods and render quality services, thereby reducing waste and cost, increasing productivity and reducing supervision (Vinesh, 2014). Organizations faced inflated competition as a result of economic process, changes in technology, political and economic environments (Evans, Pucik & Barsoux 2016) and thus prompting these organizations to coach their employees united of the ways in which to organize them to regulate to the will increases on top of and thus enhance their productivity. It is necessary to not ignore the prevailing proof on growth of information within the business company world within the last decade. 

This growth has not only been brought about by improvements in technology nor a combination of factors of production but increased efforts towards development of organizational human resources. It is, therefore, in every organizations responsibility to enhance the job productivity of the employees and certainly implementation of training and development is one of the major steps that most companies need to achieve this. As is evident that employees are a crucial resource, it is important to optimize the contribution of employees to the company aims and goals as a means of sustaining effective productivity. This therefore calls for managers to ensure an adequate supply of staff that is technically and socially competent and capable of career development into specialist departments or management positions (Afshan, Sobia, Kamran & Nasir 2012). Bearing in mind that human resources are the belongings of the firm, workers persuade be an honest supply of gaining competitive advantage (Houger 2015), and coaching is that the solely method of developing structure belongings through building workers competencies. So as to succeed, Organizations ought to get and utilize human resources effectively. Organizations, therefore, got to style its human resource management in ways in which can work into the organization’s structure as this can build the organizations bring home the bacon their goals and objectives. It is important for organizations to assist their workforce in obtaining the necessary skills needed and, increase commitment. The management of human resources in Nigeria in general and Umuahia in particular is rather challenging as most organizations have difficulties finding proper human resources. This may partly be a result of the different kinds of problems, for example, political instability, corruption, bureaucracy, poor infrastructure, low levels of education and purchasing power, diseases and famine known to prevail in the African business context (Kamoche 2016). Training and development is usually associated with large firms because they have the financial wherewithal. For SMEs, the owner-manager has been the focus as far as training is concerned (Fatoki, 2011). Additionally, small and medium enterprises are susceptible to informal coaching (on-the-job) through the interaction of expertise, social interaction and feedback (Anderson, Boocock & Graham (2011). SMEs are formal or informal business organizations, regardless of their position, that have up to 250 workers. In step with ILO (2015), there are concerning450 to 510 million SMEs within the world. SMEs, as well as chop bars, are the bedrock of all economic science within the world. For instance, small and medium enterprises contributed concerning eighty-fifth of total employment growth worldwide between the years 2016-2010 (de Kok et al., 2011). Additionally, SMEs’ share of permanent and full time employment in ninety nine countries is concerning sixty seven (Demirguc-Kunt & Maksimovic, 2016). Therefore, this study is, thus, a contribution to the training and development literature that suggests that every stage of the coaching and development method influences completely different worker performance variables.

1.2 STATEMENT OF THE PROBLEM

The perception of employees on training has a greater impact on the success of any organization. If the employees are satisfied with the training policies of the organization, this will have a positive impact on the organization’s productivity. The perception or attitude of employees is transformed into positive or negative behaviour. How do the employees see employee development programme policies of the organization? How seriously does the Management take the Policies? Some see training and development as a waste of time and resources that would have been employed in the production of goods and services that will yield profit to the organization. Sometimes, the fear that an employee could leave the organization after training affects the employees training and sometimes makes it unplanned and unsystematic. The procedure and process usually adopted by some Human Resource Departments in the identification of those employees that require training are worrisome. Employees sometimes go for training for personal reasons which include enriching themselves; preparing themselves for other positions in other organizations; power play/politics; because he/she knows the person in-charge of training and not necessarily because there is an identified skill gap which needs to be filled through training. Often times, the Human resource Department does not conduct development needs assessment. Employees’ development selection criteria ought to be systematic and free from bias. It must follow a lay down procedure to ensure that the right candidates are sent for development for positive effect on organizational productivity. In order to fill this gap, the researcher is compelled to conduct a study on the influence of development programmes of employee productivity in small and medium enterprises.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine the influence of development programmes of employee productivity in Small and Medium Enterprises. Other general objectives of the study are:

1. To examine factors affecting training and development of employees in small and medium enterprises.
2. To examine the importance of development programmes on employee performance.
3. To examine the effects of development programmes of employee productivity in Small and Medium Enterprises.
4. To examine the impact of training on employee productivity in small and medium enterprises.
5. To examine the relationship between development programmes and employee productivity.

6. To recommend strategies that can be used to improve the training and development of employees in small and medium enterprises.

1. RESEARCH QUESTIONS
2. What are the factors affecting training and development of employees in small and medium enterprises?
3. What are the importances of development programmes on employee performance?
4. What are the effects of development programmes of employee productivity in Small and Medium Enterprises?
5. What are the impacts of training on employee productivity in small and medium enterprises?
6. What is the relationship between development programmes and employee productivity?
7. What are the recommended strategies that can be used to improve the training and development of employees in small and medium enterprises?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H₀: There is no influence of development programmes of employee productivity in small and medium enterprises.

H₁: There is a significant influence of development programmes of employee productivity in small and medium enterprises.

1.6 SIGNIFICANCE OF THE STUDY

Development of the employee’s performance becomes inevitable the moment an organization realizes the need for improvement and expansion in the job. But often times, organizations embark on job enlargement and enrichment to promote employees’ morale, motivation and satisfaction when in the fact the real problem with work performance lies in capacity development. The study becomes necessary because many organizations in this contemporary world are striving to gain competitive edge and there is no way this can be achieved without increasing employees’ competencies, capabilities, skills etc through adequate training designs. However, the study results will help the management to identify the challenges effects of development programmes on employee’s performance in small and medium enterprises, hence determine the areas where improvements through training can be done. It will also help the management in planning for the development and implementation of effective and efficient training needs that will lead to increased performance of the small and medium enterprises.

1.7    SCOPE OF THE STUDY 

The study is based on influence of development programmes of employee productivity in small and medium enterprises.

1.8 LIMITATION OF STUDY

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).

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

Development: The systematic use of scientific and technical knowledge to meet specific objectives or requirements or an extension of the theoretical or practical aspects of a concept, design, discovery, or invention. It is also the process of economic and social transformation that is based on complex cultural and environmental factors and their interaction.

Programmes:  A plan of action aimed at accomplishing a clear business objective, with details on what work is to be done, by whom, when, and what means or resources will be used.

Employee productivity: Employee productivity (sometimes referred to as workforce productivity) is an assessment of the efficiency of a worker or group of workers. Productivity may be evaluated in terms of the output of an employee in a specific period of time.

Small and Medium Enterprises (SMEs): SMEs stands for Small and Medium Scale Enterprises. SMEs are those companies whose personal numbers falls below the set criteria that are 10 to 250 employees. Generally this term is used by European countries and some international organizations such as WTO, World Bank and by United Nations. SME’s are the backbone of industrial development. They play an important role in the economy of both developed and developing countries.