THE EFFECTS OF TRAINING AND DEVELOPMENT ON HUMAN CAPITAL AND PRODUCTIVITY
 CHAPTER ONE       
INTRODUCTION
1.1    BACGROUND OF THE STUDY
The effect of training and human capital development on employee’s 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 and human capital development 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 and Mincer, 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).
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. Training has been an important variable in increasing organizational productivity. Many researchers (for instance Anyanwu, 2002) showed that training is a fundamental and effectual instrument in successful accomplishment of the firm's goals and objectives, resulting in higher productivity. Training and employee development 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 and employee development also creates chances for the promotion of employees to replace those who have left the organization.
The banking sector is the focus of this study. The role and functions of the banking system in a modern economic system cannot be overemphasized (Oba, 2012). According to Usman (2003), the banking system is often considered as the heart of every prosperous economy. Banks facilitate and transfer of resources from those with excess to those who require extra resources to run their businesses. The Nigerian banking sector has witnessed tremendous growth in the last years. Its assets had grown at a commendable compounded annual growth rate (CAGR) and the sector is now driven by advanced competition brought about by a huge investment in human resources, training and development. Bank managers are realizing the need to respond to emerging customer needs and as such, to remain relevant in this sector, the concept of manpower training and development must be acknowledged. The idea of low productivity and poor service delivery attributable to dearth of training has become a common phenomenon in most banks in Nigeria.
1.2 STATEMENT OF RESEARCH PROBLEM
Training and development of employees are essential activities needed by all organizations considering the ever demanding technological improvement, innovation, and technical advancement by the banking industry. Considering the important role of training and development in bringing the Nigerian public and private organizations to a greater height, if those that are expected to execute policies of an organization and manage its affairs are not well trained and knowledgeable, there would definitely be a problem. Obviously the achievement of the objectives for which they were employed might be affected or jeopardize.  Where the human capital is not planned, organizations will be confronted with the inability to deliver quality service, inability to attract and retain the people required and difficulty in the development and training of highly talented personnel. Training on the Job and some form of in-service training are examples of training being designed or intended to develop the knowledge or expertise, greater confidence and a higher degree of performance. The principal intention of training is to equip people with the knowledge required to qualify them for a particular position of employment or to improve their skills and efficiency in the position they already hold. Staff development, on the other hand, implies growth and the acquisition of wide experience for future strategies advantage of the orga1nization.  Training is therefore a key element for improved organizational effectiveness; it increases the level of individual and organizational competences. It helps to reconcile the gap between what should happen and what is happening between desired targets or standards and actual levels of work performance. Thus the study focuses on the Effect of training and development on human capital productivity/ effectiveness in an organization in Nigeria.
1.3 RESEARCH QUESTION
Based on the foregoing, this research will attempt
to proffer answers to the following pertinent questions:
What are the effects of training and development on human capital productivity?
What are the ways to understand management policy towards training and development?
What are the ways to evaluate the attitude of the employees towards training and development?
1.4 OBJECTIVE OF THE STUDY
1. To identify the effect of training & development on human capital productivity
2. To understand management policy towards training and development
3. To evaluate employees attitude towards training and development.
1.5 SIGNIFICANCE OF THE STUDY
Training has been an important variable in increasing organizational productivity. Many researchers (for instance Colombo, Stance (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 and human capital development 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 and human capital development also creates chances for the promotion of employees to replace those who have left the organization. Factors militating against the good performance of employees is inadequate training (Colombo 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 and manpower development. 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). The importance of manpower development in national development has been extensively discussed in literature and a general conclusion has been reached by scholars all over the world. This informed [20] position that it is human resources, not capital, not income, nor material resources that constitute the ultimate basis of the wealth of nation. Proponents of organizational growth are of the view that firm and corporate organizations are becoming increasingly aware that increasing economic growth is not only due to new technology or combination of factors of production only but also the development of its manpower resources. Manpower development has both qualitative and quantitative dimension, that is to say, human capital formation includes not only expenditure on training but also the development of right attitudes towards productive processes. 1.6    SCOPE OF THE STUDY
The major aim of this study was to ascertain the effects of training and development on human capital productivity. In any research study of this nature, there is normally the enthusiasm to touch as many areas as possible which are connected to the various needs of such study.
However due to the nature and scope of the work, such a wild scope is out of the question since a work of this nature can hardly achieve a feat.
This study will examine mainly the effects of training and development on human capital productivity in banking sector in Benin City, Edo State for easy accessibility. Personal opinion of the staff and management of the banks use as case study will be gathered through the use of questionnaires.
1.7 LIMITATION OF THE STUDY
There is no gain saying the fact that every human activity is fraught with its own limitations. This study was no different. Several impeding factors, ranging from time, financial constraints, data problems, and unavailability of sufficient research materials were encountered in the course of this research work. The problem of shortage of time period, within which this research was to be carried out,was overcome by the researcher taking it upon himself to begin the study as at when necessary with the mentality of doing a good job while paying strict adherence to schedule.