Rela tionship between training practices and Performance: a survery of companies listed In the Nairobi stock exchange

Abstract

Globalization has changed the training trend in Kenya. The nation faces challenges that call for changes towards modem methods of satisfying consumers on the local and global markets. The presence of multinationals has taken competition to another level. While many companies are now training their staff, training has not always resulted into improved performance. This has resulted to minimal budgetary allocations to training and in some cases no training at all. However, the way training is managed and the appropriateness of the training approach have major implications for the success of any training intervention. This study sought to determine how the different training practices applied by firms listed in the Nairobi Stock Exchange impacted on their financial performance. A survey of the 48 firms listed in the Nairobi Stock Exchange was carried out. The objectives of the study were to determine the relationship between training practices and performance. A total of 29 firms filled in the questionnaires, a response rate of 60%. Firms were divided into two categories: companies practicing systematic training, and companies practicing non-systematic training. Tile data collected was analyzed using descriptive statistics. The major findings were: • Companies practicing systematic training recorded higher profits than companies practicing non-systematic. training. • The longer a company trained the better its training practices became. • Effectiveness of training method was the greatest determinant of training in companies practicing systematic training while companies practicing non-systematic training considered cost first before choosing a training method. • Performance objectives were most commonly used in companies practicing systematic training while companies practicing non-systematic training mostly used behavioral objectives.