Impact Of Training And Development Of Human Resource As A Critical Factor In The Banking Sector

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Many years ago, the concept of training and development were
misunderstood and not given full consideration in most Nigeria organization.
Today the situation has change totally, such that many organization, business and
non business organization has come to realize the need for training and
development of employee as vital for organization development and operation.
Training and development has started since the existence of man, as the action of
man is directed on what to do and when to do it. Just as a little child is trained on
various ways of walking, standing and sitting, it is done in order to develop the
child with skills to adapt to his environment. The above statement is applicable to
an employee, in order to train him so as to be able to adapt to the environment and
organization which he finds himself. With this, it is clear that every organization
need to train its employee so that there will be improved growth and productivity.
According to Abolo, E.M. (2000), Banking business in Nigeria started in 1892 by
African Banking Corporation. The bank was taken over by now standard bank,
now First Bank in 1894.
The two expatriate banks dominated the banking scene until 1933, when National
bank of Nigeria was established. Many indigenous banks were established between
1929. But most of them failed due to probably, lack of training and development.
Only three indigenous banks and the two foreign banks survived the period, by
1952, the first bank ordinance was introduced, it stipulated the minimum capital
based and licensing for banks. The period that followed, 1952 to 1962 and 1970,
there was no new banks establish in Nigeria, presumably because of the impact of
regulations and the civil war (1967 – 1970).
The periods of 1959 – 1986 witnessed the era of regulation. The central bank of
Nigeria was established in 1969 with the aim to promote and integrate the Nigeria
financial system. The central bank of Nigeria encouraged the development of
money and capital markets. It also encourages the banking industry. Other useful
development within the period that affected human resource development in banks
is:
a. The companies Decree (1968). Which made it mandatory for all companies
in Nigeria, including banks to register locally and b subjected to Nigeria
laws?
b. Indigenization Decree (19720, which introduced the system of deliberate
Nigerianization.
c. The acquisition of controlling shares in the three big expatriate banks. The
period 1986, to date is called the second Banking Boom Era, because of the
rapidity with which banks were established due to deregulation of the
economy. The government and private sector rely on bank for allocation of
human resources. In 1986, banking industry had 12(twelve) merchant and
29(twenty-nine) commercial banks. By December 1990, there was 48(forty-
eight) merchant banks and 58(fifty-eight) commercial banks apart from
5(five) development banks established in 1989. A unit banking system
meant mainly for rural communities started springing up towards the end of
1990. As at may 1991, there were 120(0ne hundred and twenty) merchant
and commercial banks excluding central bank of Nigeria, four development
banks, people banks and community banks.
The federal savings bank was recently converted to what they call a whole
“commercial banks” instead of being a development bank. The rapid growth within
the industry and financial system as a whole has over stretched the management
cadre of banks. It has created upliftment and promotion for many staff training and
retraining to maintain a high level of competence within the industry.

1.2 STATEMENT OF THE PROBLEM
Before the establishment of central bank in 1959, training of Nigeria bankers was
not taken serious by most banks. Especially the foreign oned banks. In every
organization or sector all over the world, the management sets up the organizations
goals and ways of achieving these goals (First Bank of Nigeria Plc). Is not
exception
Ejiofor (1981:248 – 249) states that for an organization to attain this goals
effectively and efficiently. Workers are taken very important and necessary. And
to keep and maintain these workers, they should be trained and developed, and also
be familiarized with the new trend in existence.
Many organizations have not been able to identify the important of training and
development. These questions were being asked by Rosenberger why some
organization performs better than other? Why it is that organization or sectors has
not been able to perform efficiently? Why is it that training and development is
rarely considered necessary in some?
In giving answers to these questions, it is important to determine the following
areas:
 Identify potential training needs of job existing.
 Identify individual performance level.
 Identify post training performance with respect to the training and
development objectives.
 Identify the huge sum of money and other resource usually inputed into
training of the employees of First Bank of Nigeria Plc.
The need to find solution to this problem can badly be over emphasized. It is so
order to correct the impression that has been created into the mind. Executive who
believe that there is no effect in investing fund in training and development of
employees in the bank.

1.3 OBJECTIVE OF THE STUDY
Following the topic under discussion, the objective includes the following;
1. To determined influence of training and development of human resource on
the operation of banks.
2. To help provide an opportunity and broad structure for the development of
human resource technical and be behavioural skills in the bank.
3. To find out if staff of the banks see the training and development programme
as motivation and means of job enrichment and satisfaction.
4. To determine the number of bank staff trained each year and how it affects
their performance at work.
5. To evaluate worker performance before and after training courses.
6. To make recommendations where appropriate to the banks in other more
meaningful, it human resource training and development.
7. To improve upon the quality of work and life in the bank.
8. To determine the problem banks encounter in carrying out training and
development of its staff.

1.4 SCOPE OF THE STUDY
Looking on the topic of this study the aim at covering all the above
mentioned objectives. The study the Enugu main branch of Nigerian Plc. The
finding made in the research is not only beneficial to bank operation, but also
beneficial to other organization in Nigerian in their training and development of
human resource, which help improve individual worker performance and that of
the entire company

1.5 RESEARCH QUESTION
The research question formulated by the researcher for the purpose of this study
includes the following:
1. How does training and development of human resource help in achieving
banks goals?
2. What proportion of the staff is trained annually?
3. Did training and development of human resources have any influence on the
level of performance of the banks?
4. What type of training and development of human programmes are available
in the banks.
5. Did training and development of human resources have any effect on
improving profitability of the banks?

1.6 RESEARCH HYPOTHESIS
As it is known in the actual sense that at the beginning of very research work
is hypothesis. As it help the researcher to design and plan his enquiring, choose his
method of data. Collection, make use of statistical tools of his choice to carry out
the study effectively. Based on the study training and development of human
resource as a critical factor in Bank operation study of First Bank of Nigeria Plc
Main Branch, Okpara Avenue, Enugu.
Ho: Training and development doe not improve the level of job performance of
the staff of the banks
Hi: Training and development does improve the level of job performance of the
staff of the banks.
Ho: Training and development opportunities do not motivate workers.
Hi: Training and development opportunities do not motivate workers.
Ho: Training and development of human resources do not improve the
profitability position of banks.
Hi: Training and development of human resource do improve the profitability
position of banks.

1.7 SIGNIFICANCE OF THE STUDY
For training and development of human resource to have effect on bank
operation, its objectives, benefits and process must be dearly stated and understood
for the benefit of those who are expected to gain from it. The study is expected to
be of benefit to the following.
1. Banks in Nigeria: The study will help the management of the bank in
Nigeria to improve the quality of the staff with particular reference to first
bank plc, main branch Enugu.
2. Bank Customers: An improved banking service will help eliminate waste
of time in the bank before attention is given to customers.
3. Nigeria Economy: The research work will help rebuild all battered
economy.
4. Bank Staff: When bank realize the need for human resource training and
development, their employee will have greater opportunity of being trained.
It will help to develop and shape their future.

1.8 LIMITATION OF THE STUDY
Training and development is vital and significant to all organization both
private and public sector. But this study is focusing on first bank of Nigeria plc
main branch Okpara Avenue Enugu. Other imitations that affect this research work
are:
1. TIME: the time given for the research work is so short that most time it
clashes with lecture period, so this lead to the inability to get quality result.
2. FINANCE: is very important to every research work, as the information is
not found in a particular place, the researcher need to transport him/her self
to the place the information can be gotten. And this entails money.
3. QUALITY OF INFORMATION
Analysis of the work depends strongly on the quality of information gotten
from the staff. After the administration questionnaire to the staff, they