THE INFLUENCE OF TRAINING AND DEVELOPMENT STRATEGY ON THE PERFORMANCE OF LOCAL GOVERNMENT AUTHORITIES
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
According to recent research, the transition from traditional human resource management to strategic human resource management is required in today’s global competition for labor and technology (Jones & George, 2018). Implementing innovative human resource management methods is critical for increasing output (Gambo, 2015; Jones & George, 2018). One such example is the implementation of training and development plans inside Local Government Authorities (LGAs).
Training and development methods in LGAs gained traction during decentralization by devolution, with the goal of empowering LGAs through personnel training and development (URT, 1998). Studies have shown that training and development play a vital role in improving the performance of both individual employees and LGAs, particularly in cases where poor performance is caused by a lack of knowledge, skills and attitudes (KSA) (Gambo, 2015). Additionally, training and development help LGAs to better utilize available human resources. In light of the importance of training and development in LGAs, various studies on the management of training in LGAs have been conducted in recent years.
However, more research is needed to understand the impact of training and development policies on LGA performance, particularly in Africa. This study looks into the impact of the Training and Development (T&D) plan on the performance of LGAs. Training and Development (T&D) is a vital management strategy that contributes significantly to organizational performance. The Resource-Based View (RBV) of the company, which holds that a firm’s resources and capabilities are the primary drivers of its performance, can be used to explain the link between T&D and organisational performance.
According to RBV, organizations that have a competitive advantage in terms of their human capital, such as skilled and motivated employees, are more likely to perform better than those without such an advantage (Barney, 1991). T&D is a key means by which organizations can build and sustain a competitive advantage in terms of human capital. By providing employees with the knowledge, skills and abilities necessary to perform their jobs effectively, T&D can help organizations to improve productivity, work quality and overall performance (Boudreau & Ramstad, 2016).
Recent literature on T&D and organizational performance has supported the link between T&D and performance as proposed by the RBV. A study by Boudreau and Ramstad (2016) found that T&D is positively associated with improved employee performance and organizational performance. Similarly, a study by Gambo (2015) found that T&D plays a vital role in improving the performance of Local Government Authorities (LGAs) in Nigeria. Furthermore, T&D can also help organizations to develop and sustain a competitive advantage in terms of innovation.
By providing employees with the knowledge, skills and abilities necessary to develop new products, processes or services, T&D can help organizations stay ahead of their competitors (Boudreau & Ramstad, 2016). A study by Nchimbi et al. (2018) also found that T&D has a significant influence on the performance of Local Government Authorities (LGAs) and concluded that T&D plays a significant role in improving performance in LGAs. Hence, the Resource-Based View of the firm provides a useful framework for understanding the relationship between T&D and organizational performance. T&D can help organizations to build and sustain a competitive advantage in terms of human capital and innovation, which in turn can lead to improved organizational performance.