An Empirical Evaluation Of Training Effectiveness Commerce Essay

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Training effectiveness is important factor for any organization to function efficiently by improving learning capacity, skill and inter-relationship among employees. The effective training also help the organization to fulfill its needs as it pave way for thriving the employees at work and evaluating performance. Therefore, the present paper is aimed to evaluate the training effectiveness in improving the learning capacity, development of skill, work group relationship, thriving employees at work, fulfilling organizational need and assessing the employee performance empirically. The sugar mills in Tamil Nadu under Private, Public and Cooperative sector are taken for the study. The collected data are subjected to reliability / item analysis and principal component method of factor analysis to ascertain internal consistency and underlying dimensions of items in the scale measuring training effectiveness in sugar industry. To evaluate where there is any discrimination in the training effectiveness among private, public and cooperative sugar mills, discriminant analysis method is adopted. From the results of the analysis, it is understood that training effectiveness are multidimensional and there is notable sectoral differences in the effectiveness of training among sugar mills.

Key Words: Training effectiveness, Principal Component Method of Factor Analysis, Discriminant analysis.


Every organization is turning to training in order to cut costs and increase productivity by development of skills among employees. At the same time, the effectiveness of training is not only determined by the outcome but also by the background characteristics of the employees who receive the training. So, evaluating the training effectiveness is an important one for any organization as it will help the organization in determining its efficiency based on the employees' capabilities. At the same time, training effectiveness is likely to differ from one organization to another organization by nature of products or services. Even among organizations under same sector, training effectiveness is not likely to be the same. Though there are number of studies evaluating training effectiveness of an organization or group of organization under one particular sector, there are no adequate studies on comparing the training effectiveness among organization by sector in the same industry. So, the present article is aimed at evaluating the training effectiveness in sugar industry and an attempt is also made whether the effectiveness of training in sugar mills under private, public and cooperative sectors is similar or not.

Training Effectiveness

Effective training is an important factor for determining the efficiency of an organization which depends upon the capability of its employees. Effective training depends on knowing what is required - for the individual, the department and the organization as a whole. While training refers to a planned effort by a company to facilitate employees' learning of job-related competencies, the training effectiveness refers the creation of knowledge, skills or behaviours among employees that are critical for successful job performance in the immediate term or near future. For training to be truly effective, the training and development itself must be appropriate for the person and the situation. Evaluation of training effectiveness is not only for the trainer or organization but it is absolutely important for the learners too. The trainings provided in an organization is evaluated as effective if it helps in giving feedback to the trainees by defining the objectives and linking it to their learning outcomes and performance and also helps in finding out the relationship between acquired knowledge and transfer of knowledge at the work place. Training effectiveness is a study of characteristics of the individual, training and organizational that affects training processes, before, during and after training.

Sugar Industry in India and Tamil Nadu

India has been known as the original home of sugar and sugar cane. The growth of the sugar industry is full of tales of adventure and conquest. It received attention of the builders of different Empires from time to time. About 800 B.C. sugar cane was perhaps taken eastward, i.e. China, where it found suitable soil for development. About 327 B.C. when Alexander the great, invaded India he and his soldiers were the First Europeans to see sugar cane in India. On their return westward they took sugar cane to Europe, but it was about 700 A.D. that it is was actually cultivated there. It was between the fourth and sixth centuries that the art of making sugar was discovered in India.

The first sugar mill in the county was setup in 1903 in the United Provinces. However the start of the modern sugar industry in India dates back to mid 1930's when a few vacuums pan units were established in the sub-tropical belts of Uttar Pradesh and Bihar. The number of sugar mills increased from 30 in the year 1930 -31 to 135 in the year 1935-36. As of 2010-11, there are 655 sugar factories in India and out of total, 321 sugar mills under cooperative sectors followed by 272 mills under private and just 62 sugar mills under the control of Government.

The sugar industry in Tamil Nadu is an important agro-based industry next to textile industry. It plays a major role in the economic development of rural areas in Tamil Nadu. The sugar industry generates large scale direct employment, apart from providing indirect employment to thousands of persons in rural areas who are involved in cultivation, harvesting, transport of cane and other services. As on 2010-11, there are 42 sugar mills, 25 under private, 2 under public and 15 under cooperative sectors. The department of sugar was formed in the year 1969, in order to devote special attention to the development of sugarcane and to regulate and oversee the establishment of sugar mills in the cooperative and private sector in Tamil Nadu.

Literature Review

Dubashi [1] defines training "as a process of improving the knowledge skill and attitude of employees to achieve organizational objectives. It is only through a systematic program of training that necessary professional knowledge is imparted, skills developed and attitudes attuned to work situation. Generally, training is considered as an essential activity to increase the knowledge, skills, abilities and attitudes so that the employee will perform the job better than otherwise. According to Keep [2], 'Effective training' will indicate 'not only finding out whether the training was well done but also asking what it achieved and whether it was worthwhile for the organization to be sponsoring it' Rigg [3] stated that Trainees' attitudes may affect the effectiveness of training. Attitudes are likely to be influenced by participants' experience of training and in turn affect trainees' perspectives about the evaluation of training

Guthrie and Schwoerer [4] however, stated that self-efficacy on its own does not directly affect training effectiveness, but when self-efficacy was measured together with perceived superior support and perceived training utility, it will have an impact on training effectiveness. Bandura [5] stated that self-efficacy will lead the trainees to believe that they are better able to perform the tasks after training. As stated by Chen et al. [6], training offered to employees, may help them reduce their anxiety or frustration, brought on by work demands, that they are not familiar with, and they are lacking the skills to handle effectively. Stavrou et al. [7] reported that one of the main challenges human resource managers faced in the 1990s involved issues of training and development. The main goal of training is to provide, obtain and improve the necessary skills in order to help organizations achieve their goals

Subrahmanian [8] stated that training is inevitable as it develops the skills and knowledge of the employee and enables them to take up challenging jobs. Training builds up self-confidence in the minds of employees. Mehrdad et al. [9] found that effective training enhances the knowledge, skills, attitude and behaviour of people and hence their performance. Overall they found that on the job training is strongly affects to more creativity, achieving organizational objectives and improves work quality. De Meuse, et al. [10] suggested that training programs conducted in the public sector helped the employees to contribute significantly to their organization by applying the knowledge and skills learned in the training.

Objectives of the Study

This study has following objectives:

To find out the various facets of training effectiveness in sugar mills

To compare the training effectiveness among private, public and cooperative sector sugar mills.


The study is based on primary data. The population of this study was employees of six sugar mills, two each from private, public and cooperative sectors functioning in the State of Tamil Nadu. There were 2225 employees in the total population. The sample for the study consists of 575 employees selected randomly from the total population. The questionnaire instrument was used to collect data from the sample respondents. A scale comprising 30 items with 5-point scale ranging from 'strongly disagree', 'disagree', 'neither disagree nor agree', 'agree' and 'strongly agree' was included in the questionnaire to measure training effectiveness. For the analysis each level of opinion was assigned with values from 1 to 5 for 'strongly disagree' to 'strongly agree' respectively. The Cronbach alpha coefficient was 0.9428 for training effectiveness scale items, indicating excellent level of internal consistency. The major facets (underlying dimensions) of training effectiveness were obtained by principal method of factor analysis. The difference in the training effectiveness is ascertained by discriminant analysis.

Results and Discussion

Table I shows the results obtained from factor analysis of training effectiveness scale items. From the table it is understood that there are seven factors underlying training effectiveness which could portray the actual data obtained by 30 items scale to extent of 75.36 per cent. That is, all seven factors with eigenvalue above one have 75.36 per cent of essence of the variables in the actual data pertaining to training effectiveness. The actual characteristics of each factor are identified based on the factor loadings of the scale items.

From the examination of the factor loading shown in the table, it is understood that the first factor is highly loaded by items - 21, 20, 9, 11 and 19 with item 21 leading the list with loading value of 0.806. While loading of item 23 is highly compared to that of other highly loading items - 2, 16, 8, 22, 7, 26, and 24 with second factor, the third factor is highly demonstrated by items - 25, 29, 28, 5 and 18. Most of the characteristics of fourth factor is based on items 14, 17, 10 and 15 at almost similar degree. The fifth factor is represented first by item 3 followed by items 27 and 1. The sixth factor has the most of essence of items 12, 30 and 13 in the mentioned order whereas the seventh and last valid factor is equally and highly described by items 6 and 4. Based on items loadings, the first, second, third, fourth, fifth, sixth and seventh factors are identified as "Self-Efficacy", "Skill development", "Organizational need", "Employee Relations", "Thrive at work", "Self-Learning" and "Performance evaluation".

The difference in training effectiveness among public, private and cooperative sugar mills is analyzed by discriminant analysis. Table II shows the discriminant functions and their statistical significance. According to the table, there are two discriminant functions and fit of the first function with canonical correlation of 0.2015 and Wilks' Lambda of 0.9493 is significant statistically at 1% level (Chi-square = 29.60). This indicates that there is at least one discriminant function which can best distinguish the sugar mill sectors based on the different facets of training effectiveness. As per Table III, the group centroids for first significant function, i.e., mean of the canonical variables of first discriminant function, are at two extremes for private (0.2670) and cooperative sectors (-0.2386). That is, there is vast difference in training effectiveness between private and cooperative sector sugar mills. As the group centroid for public sector sugar mills is almost in the middle, it can be said that the status of training effectiveness is neither to that of private sector mills nor to that of cooperative sugar mills. From structure matrix, as reported in Table IV, it is understood that the canonical variate, which is the linear combination of all seven aspects underlying training effectiveness, is highly dominated (correlated) by the skill development followed by organizational need, employee relations, self learning and performance evaluation. The aspects, such as thrive at work and self-efficacy also have substantial correlation with canonical variate of the first significant discriminant functions.

From the structure canonical coefficients, which are in comparable units and which provides the relative contribution of a variable to the group difference, it is understood that the contribution of skill development is higher than that of other variables in the model to the discrimination of the groups (here sectors). Next to the above, employee relations followed by thrive at work have discriminating power on sugar mills sector. The self-efficacy is also found to be having power of discriminating the sector to certain extent.

Overall, it is found that trainings provided in the private sector sugar mills are highly effective in developing skills and improving employees' relations whereas it is vice versa in the case of cooperative and public sector sugar mills. On the other hand, effectiveness of trainings programmes in thriving employees at work as well as in increasing self-efficacy among them is substantially higher in cooperative and public sector sugar mills compared to that of private sector sugar mills under study.


The study has led to the conclusion that training effectiveness in sugar mills was multi-faceted. The training in the sugar mills were effective in terms of increasing self-efficacy of the employees, developing skills among them, fulfilling organizational need, improving cordial relationship among the employees, pushing the employees to involve more at their work (thrive at work) and motivate them to educate themselves (self-learning) and help authorities to evaluate the performance of the employees. At the same time, when analyzed by sector, it is concluded that the trainings provided in the private sector sugar mills are highly effective in developing skills and improving employees' relations whereas effectiveness of trainings programmes in thriving employees at work as well as in increasing self-efficacy among employees is substantially higher in cooperative and public sector sugar mills compared to that of private sector sugar mills under study.