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The country‟s insurance market is expected to quadruple in size over the next 10 years from
its current size of US$ 60 billion. During this period, the life insurance market is slated to
cross US$ 160 billion. The general insurance business in India is currently at Rs 78,000 crore
(US$ 11.44 billion) premium per annum industry and is growing at a healthy rate of 17 per
cent (IRDA).
The Indian insurance market is a huge business opportunity waiting to be harnessed. India
currently accounts for less than 1.5 per cent of the world‟s total insurance premiums and
about 2 per cent of the world‟s life insurance premiums despite being the second most
populous nation. The country is the fifteenth largest insurance market in the world in terms of
premium volume, and has the potential to grow exponentially in the coming years.
Nowadays, insurance is a vital need of the people and the organizations to be prepared for
any unforeseen and unfortunate event or mishap (IRDA).
Training is compulsory to employees in the insurance industry. They have to undergo with
the orientation/induction at the time of joining, refresher and product training frequently.
These training ensure the improvement of employees performance in the organisation. This
study was conducted to find out the impact of training on employees‟ performance of Private
Insurance Sector in Coimbatore district.
RESEARCH METHODOLOGY
The Study on “Impact of Training on Employee Performance in Private Insurance Sector,
Coimbatore District” was conducted as a descriptive study deals with collecting,
summarizing and simplifying data and drawing conclusion. The main Objectives of this
research are to study the impact of training on employees performance and to know the
determinant factors that determine the employee productivity.
Population of the study, Impact of Training on employee performance in Private Insurance
Sector, Coimbatore District” is 10 companies from both life & non-life insurance sectors.
Employees of Private Insurance Sectors in Coimbatore District are taken for this study.
Sample refers to the respondents. Sampling is the process of choosing a representative
portion of the entire population, the population of employees in private insurance sectors in
Coimbatore district. Employees present in all departments of the company are selected for the
study which comes around 15-20 in number.
Sampling Unit: Refers to the place of the study, which is in Coimbatore.
Sampling Technique followed is the Random Sampling Method.
Sample Size of the study is 75 respondents from the 10 companies of Private Life & Non-life
insurance sectors.
Data Collection has been done through the primary data collection by “Questionnaire
Method” designed with questions on the different aspects of employee performance and
given with 5 point Likert scale rating choice to the respondents for choosing demographic
details.
Employees‟ performance scores were calculated by adding the ratings given by the
respondents for all the items. Ratings were assigned as 1 = Strongly Agree, 2=Agree,
3=Undecided, 4= Disagree, 5=Strongly Disagree.
RESEARCH TOOLS used are t-Test, and Chi Square.
STATEMENT OF THE PROBLEM:
Employee training is a learning experience, it seeks relatively permanent changes in the
employees that improves their job performance (David A De Cenzo & Stephen P. Robbins,
2007). Insurance industry is the major contributor in Indian economy (IC 33, Life Insurance
by Dr. Sashidharan Kutty & Prof. Pranav Misra, 2014). The insurance sector is a colossal
one now, witha consistent growth rate of 32% - 34% and its present worth is 41 billion US
dollars (CII). Insurance services add about 7% to the country‟s GDP. Employees in insurance
sector of Coimbatore district - the Life Insurance, Non-Life Insurance (Medical Insurance &
General Insurance) are studied for this research.
The reason for this study is the importance of training in industrial sector has become
necessary one to impart knowledge and skills to employees for the better performance, in the
job Industries like insurance sector are concentrating more on training both freshers and
existing employees. The time and money spent on training in insurance industry is also
comparatively more. But, it‟s a big question. Does the training bring changes in the
employees‟ tendency, attitude & performance?
They seems self-oriented or towards the self-development than contributing for the
company‟s development. Hence the attrition rate in the insurance sector is also high.
Employees are moving to other companies after acquiring the necessary skills through the
training provided by the previous companies. How does the organisation get benefited
through the employees performance? Is there improvement in employees‟ productivity and
organisations profitability? Hence, this study has been conducted to find out the effective and
efficient functioning of employees after the training.
REVIEW OF LITERATURE
The effective functioning of an organisation depends upon the efficiency or capability of the
human resources. This human resource‟s potential can be elevated to the next level through
the proper training which helps the organizational growth & success.
Vaasan Ammattikorkeakoulu (2013) conducted a case study to evaluate the effects of
training on employee performance, using the telecommunication industry in Uganda. The
study was based on three case studies of the biggest telecommunication companies operating
in Uganda. A qualitative research approach of the data collection was adopted using a
questionnaire comprising of 18 questions distributed to 120 respondents. Based on this
sample the results obtained indicate that the training is a clear effect on the performance of
employees.
In the insurance sector, the training and development function holds a key responsibility by
helping employees to upgrade their performance on a continuous basis. A study by Shefali
Verma & Rita Goyal (2011) analyzed the status of the various training and development
practices in Life Insurance Corporation in India and explores the proposed link between the
training and employees productivity. This study emphasizes the importance of training for the
effective functioning of the organisation.
The employee performance is measured in terms of the improvement in Productivity,
Absenteeism and the Employee Job Satisfaction. Prasadini N Gamage & Mr. Lionel
Imbulana (2013) conducted a study for identifying the effectiveness of the training and
development of the call center staff of the Sri Lanka Telecom. The performance was
measured with the dimensions of employees Productivity, Absenteeism and the Job
Satisfaction. The statistical analysis of the study revealed that that there is a significant
positive relationship between the training &development and the employee productivity.
Hemanalini R (2013) conducted a study, to examine the impact of the training and
development programs on employee performance in IBFI Federal Life Insurance Company
Ltd, Coimbatore. The available evidence from descriptive research and the model were tested
with a survey sample (n=200). This study carried two dimensions such as training and
development and employee performance with two inter-dependent variables such as work
attitude and job involvement. The data was obtained by questionnaire method and random
sampling method was used. The purpose of this study was to examine and gain a better
understanding of the drivers that influence the impact of training and development on the
employee performance. It is found that there is a high relationship between training &
development and employee performance. The factors age, tenure and marital status over
employee performance is high association between each other.
According to Amir Elnaga & Amen Imran (2013) training plays vital role in the building of
competencies of new as well as current employees to perform their job in an effective way.
Their study in hand chiefly focuses on the role of training in enhancing the performance of
the employees. It also prepares employees to hold future position in an organization with full
capabilities and helps to overcome the deficiencies in any job related area. Training is
considered as that sort of investment by the firm that not only brings high return on
investment but also supports to achieve competitive advantage.
Uzma Hafeez & Waqar Akbar (2015) in their research aims to see the “Impact of Training
on Employee Performance in Pharmaceutical Industry in Karachi Pakistan”, in which the
training is considered as independent whereas dependent variable „Employee Performance„
having its performance areas i.e.; demonstrating team work, communication skill, customer
service, interpersonal relationship and reduced absenteeism and its development areas i.e.;
job-satisfaction, employee motivation, new technologies, efficiencies in process and
innovation in strategies as its levers. Four pharmaceutical companies are selected. A survey
of 356 employees via self administrated questionnaire with the help of random sampling
technique is conducted with the response rate of 96%. The analysis shows that when the
employee get more the training, more efficient their level of performance would be.
Mubashar Farooq & Muhamamd Aslam Khan (2011) had conducted a study to elaborate
the impact of Training and Feedback on increasing the performance of employees. The
review of the literature conducted explains and highlights the role of effective training and
the feedback in improving the quality of task process which ultimately results in the
improvement of performance of employees. An empirical study was conducted and data was
collected through questionnaires to find the results. Findings of this study suggest arranging
and adopting more effective training programs and techniques in order to give the progressive
shape to the results achieved through this study.
Hotel sector which is actually the services business needs a lot of training for all the staff of
the hotel. According to Ameeq-ul-Ameeq & FurqanHanif (2013) the training in services
sector is very important because most of the staff are directly in contact with the customer
and they are giving them the services. Their study reveals that the training programs of the
hotels of Lahore are actually helping the employees to develop and perform their task.
The relationship between the training and performance has been studied in previously in
many research. But the impact of training on employee performance in the private insurance
sector with respect to Coimbatore district has not been studied so far. Hence it id decided to
do the study on “Impact of Training on Employee Performance in Private Insurance Sector,
Coimbatore District”.
RESULTS AND DISCUSSION
The study on “Impact of Training on Employee Performance in Private Insurance Sector,
Coimbatore District” reveals the following facts that;
The table V.1 shows the mean employee performance scores calculated from the different
groups of age, staff category etc. Significant differences are found in the employee
performance scores among different age groups as well as staff category. The employees
between the age 21-25 & 26 – 30 are the better performers than the other age groups. The age
in years have significance at 5% level. Amongst the staff category of the employees, the
administrative staff are performing better than the sales personnel. The staff category has 1%
significant level.
Table No. V.2 indicates that in the improvement of employee productivity at the variable
education qualification has 5% significance level. This reveals that the employees who have
completed their under graduation have performed well in organisation and it has the Chi –
Square value of 13.859 significant at 1% level. The other variables like gender, age, monthly
income & experience have no significance.
The performance of employees in the organisation before and after the training is compared
Table No V.3. Data collected through this study was analyzed through the Chi-square test. It
results that the training improves the performance / productivity of employees. There is a
significant increase in the employee performance level. Among the employees who are in the
performance level of 75%-90% before training, 45% of them have improved their
performance to 90% - 100%. The highest level of employees productivity increase is 78.6%
from 50%-75% to 75%-90%. The next highest percentage is 65.2% from below 50% to
50%-75%.50% of the employees have not shown any improvement in their productivity.
They remain in the same percentage of productivity 90% - 100%.
The Impact of Human Resources Management (HRM) practices have also been analyzed
through this study. In Table V.4, the assessment of training needs & the motivational
programmes have a significant impact on employee performance. Monetary & Non-monetary
benefits provided to the employees have also impact on employees‟ performance. For
example, the motivation given to the employees improves their performance. The results
reveal that whenever the performance appraisal has properly been done and the respective
feedback is communicated to the employees they are able to concentrate on their feedback
and improve their performance. The growth of opportunities available in the organisation also
have a remarkable impact on employees‟ performance.
FINDINGS
Insurance industry is the complex one, wherein diversified employees are there with similar
kinds of targets in sales and works in the administrative side. The employees‟ demographic
factors reveal that the age of the employees in the sales department plays a major role. As the
targets fixed in sales, and maintaining back office work for these policies is hectic, the
employees‟ age group of 21-25 is showing improvement in their performance. This is
gradually reduced and remains almost same till the age of 35 years. As they gain experience
after that they are showing improvement in their performance after 40 years.
For the better performance and the consistence growth the Undergraduate education is
sufficient. The PG degree doesn‟t play any special role in their business.
The performance of the Sales personnel is depending on the market trend and the economic
condition of the people for both taking insurance policy and paying the premium. Hence the
sales managers finding it difficult to show consistent improvement in their business though
the training is being given. The administrative staff are showing improvement in their
performance after training.
It is revealed from this study that the training plays a major role in the employees‟
performance. There is consistent growth in their performance after the training. They have
shown improvement in their performance level from 20% - 25% growth after the training.
The employees those who are already performing 90%-100% shown consistency in their
performance level. Find out the time taken for achieving their target within the month period
time could be the future research scope in this study.
The Human Resource Management (HRM) practices other than the training followed in the
organisations are very important to the employees for enhancing their interest toward the
training and the subsequent developmental aspects.
The performance level & the knowledge in their products, work procedure determines the
necessity of the employee training other than the freshers. It also reveals that the periodical
training programmes are mandatory to the employees in the Private Insurance Sector.
SUGGESTIONS
Employees in the organisation should be offered with the proper training periodically to
improve their performance in job. The training needs the employees should be properly
identified through the performance appraisal system. The training provided should not be
restricted with the newly joined staff, the existing staff members should also be provided with
refresher training, cross-functional training etc. it keeps them updated with their knowledge,
technology and working practices.
The management should take all initiatives to maintain a cordial relationship with the
employees as the study reveals that the motivation has also an impact on the employees‟
productivity.
The senior officials should understand the needs of the employees on the training aspects and
other aspects to plan for the training programmes ensure the employees have active
participation in these programmes.
While framing the rules and regulations of the organisations, the HRM practices should be
duly taken care with Human Resource Management (HRM) practices hence it also has an
impact on the employee productivity.
Recognition of the employees as and when they contributed special or additional for the
organisation is very important. This includes both monetary and non-monetary benefits. It
will make the employees more committed towards their job, which improves their
performance level.
The effectiveness of the training should be monitored through the observation, collecting
feedback from the trainees and evaluating the performance level after the training
programmes of the employees.
Growth opportunities for the employees in the organisation by the management to improve
the effective & enthusiastic participation of employees in the work and produce better results.
CONCLUSION
Human Resource is the work force, which brings changes in the organisations and needs to be
taken for the welfare of the organisation. Their needs & development should be specially
addressed by the management. Employees will be productive and committed towards their
job only when they are provided with the required inputs, let it be machine, material or the
skills sets. Training is a tool which improves the skills sets and knowledge of the employees
that improves the productivity & profitability of the organisation. This study on Impact of
training on employee performance has been conducted in the Private Insurance Sector,
Coimbatore District with a sample size of 75 respondents. The survey has done through the
Questionnaire Method. Data obtained were analyzed through t-test and Chi-square.
Results obtained reveal that the effective training improves the performance of employees.
The effectiveness of the training should be improved through the proper periodical
scheduling of the training, selection of quality trainers, implementing the best training
methods etc.
Training should be given to both freshers and existing employees. Their feedback should be
obtained and evaluation of their performance after the training programme should also be
done to improve the training effectiveness. It also analyzes the employee performance after
the training.
The Human Resource Management (HRM) practices, motivation, monetary and non-
monetary benefits to the employees to recognize their contribution are also influence the
employee performance.
Age, educational qualification and work experience are the other factors which determine the
employees‟ performance in the organisation through the training. This study clearly indicates
that the training have impact on employee performance.
FUTURE SCOPE OF THE STUDY
Training plays a major role on the employees‟ performance. This study reveals that the
effective training enhance the efficiency of employees and effectiveness of organizational
function. The organizations are investing huge amount on training. The measuring of Returns
on the Investment (ROI) make in the insurance sector can be studied through measuring the
profitability of the organisation could be future scope of this study.
Table No. V.1: Comparison of related personal variables.
Variable Groups Mean Standard Number T- F- Significance
Deviation Value Value
Gender Male 61.04 4.18 52
Female 61.17 5.51 23 0.117 Ns
21-25 yrs 62.5 5.84 16 *
26-30 yrs 59.65 4.05 17
31-35 yrs 59.21 3.99 19
36-40 yrs 62.63 4 16
Age in years Above 40 yrs 62.86 3.24 7
Total 61.08 4.59 75 2.517
Education GRADUATE 60.72 4.4 57 1.216 Ns
Qualification POST 62.22 5.09 18
GRADUATE
Total 61.08 4.59 75
Marital Status Married 61.37 4.31 41 0.059 Ns
Unmarried 60.74 4.95 34
Total 61.08 4.59 75
Staff Category Sales 60.29 4.21 62 3.493 **
Administration 64.85 4.62 13
Total 61.08 4.59 75
Monthly Rs.2-3 Lacs 60.32 5.25 19 0.347 Ns
Income (In Rs.) Rs.3-4 Lacs 61.35 4.3 37
Rs.4-5 Lacs 61.32 4.61 19
Total 61.08 4.59 75
Experience in 1-2 yrs 61.8 5.05 35 0.892 Ns
present 3-4 yrs 60.32 4.26 34
company 5 yrs & above 61.17 3.31 6
Total 61.08 4.59 75
What is the 90% -100% 62.2 5.71 15 1.741 Ns
improvement in 75% - 90% 61.82 3.73 34
productivity 50% - 75% 59.55 5.04 22
after your Below 50% 59 0.82 4
motivation Total 61.08 4.59 75
programme?
Ns: Not significant,* Significant at 5% level (95% Probability),** Significant at 1% level (99% Probability
Source: Primary Data collected and calculated through questionnaire.
Table No. V. 3 : Employee performance before and after the training programme.
What is the improvement in productivity after your total
training programme?
90% -100% 75% - 90% 50% - 75% Below 50% No. %
No. % No. % No. % No. %
What is the 90% -100% 2 50 1 25 1 25 4 100
percentage of 75% - 90% 9 45 9 45 2 10 20 100
business you have 50% - 75% 2 7.1 22 78.6 4 14.3 28 100
done before your Below 50% 2 8.7 2 8.7 15 65.2 4 17.4 23 100
training programme total 15 20 34 45.3 22 29.3 4 5.3 75 100
Source: Primary Data collected and calculated through questionnaire.
Chi-Square Test
Value df Sig.
Chi-Square 49.708 9 **
The existing reward and incentive plans do not motivate us for 75 1 5 3.9333 1.06965
better performance.
Our organization appraises the performance of its employees at 75 2 5 3.8 0.73521
regular intervals
Performance appraisal in our organization aims at improving 75 2 5 4.24 0.6543
employee performance.
Our performance goals are set at realistic levels 75 1 5 3.9867 0.7797
We receive proper feedback on how we are performing 75 2 5 4.16 0.65842
Adequate growth opportunities are available in our organization 4.0933 0.52436
75 2 5
for those who perform well
In our organization good performers get promoted first 75 2 5 4.1333 0.74132
Source: Primary Data collected and calculated through questionnaire.
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