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South Asian Research Journal of Business and Management (SARJBM)
Volume-7 | Issue-03
Review Article
Importance of Training on Organisational Performance: A Review of Literature
Aliu, Fatai Oguntade, Japinye, Abayomi Oluwaseun, Alenoghena, Raymond Osi, Osanebi, Chimsunum
Published : May 31, 2025
DOI : https://doi.org/10.36346/sarjbm.2025.v07i03.010
Abstract
Abstract: This paper explores the important link between employees training and organisational performance. Training in organisations plays an important role to ensure steady growth and sustenance of organisational productivity through improving employees' knowledge, skills, and efficiency. A well-designed training programmes ultimately help employees stay updated with industry trends, fosters employee engagement leading to higher retention rates, hence, organisations that consistently invests in training exercises would probably encounter less challenges in adapting to changes in the environment. Effective training exercises enhances teamwork which drives organisational performance and productivity. The success and survival of any organisation is largely determined by the efficiency and effectiveness of services which the employees render to sustain organisational performance. Human Capital Theory was used to underpin the study which shows the positive impact of training on organisational performance. A review of current related literatures on the role which training activities play to improve and sustain organisational productivity as published in leading research journals were carried out. Two broad types of training were identified being Formal training and In-service training. Each of this broad divisions have attached variables and sub-variables that spelt out details how each training type or segment would be carried out and the methodology to adopt in imparting the knowledge. The study concluded that there is a positive relationship between employee training and organizational performance. Training has a positive effect on organisational performance and that organisations should not treat training as an expense item, but rather as an investment which will manifest in quality service and improved organisational productivity at a future period.

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