Asian Journal of Business and Management (ISSN: 2321 - 2802) Volume 06– Issue 05, October 2018 Asian Online Journals (www.ajouronline.com ) 58 Effects of Training on Organizational Performance Cross Ogohi Daniel Department of Business Administration, Nile University of Nigeria Abuja, Nigeria Email: danielcross [AT] nileuniversity.edu.ng ______________________________________________________________________________________________________ ABSTRACT— Training is one of the Human Resources functions of the organization. When employees are recruited into the organization, they may not come with all the required skill set to discharge fully their roles in the organization. Hence, the one to equip such new employees with relevant skill set for the good of the organization. Also, the business world is very dynamic and ever changing. Organizations keep innovating making it imperative or organizations to keep training and learning. The rate technological advancement has made it almost impossible for any forward looking organization not to flow with the competition is cut throat. Customers keeping raising expectations which every bank which want to remain in business will necessarily have to meet. The Customer-facing employees will need the right skills, knowledge and attitude to manage the customers with their high expectation. The right skill, knowledge and attitude can be acquired through training. The research attempts to find out the impact which training has employee performance bearing in mind that the aggregate of individual performance will culminate to organizational performance. The study considered the microfinance bank sub-sector from which three banks were selected. Data was collected from 304 respondents who were drawn using Taro Yamane sample size determination technique through structured questionnaire. The data collected was subjected to both descriptive and inferential techniques were used to test formulated hypotheses. The study showed that employee skill, knowledge and ability gained from training has significant effect on productivity. Further findings reveal that training has effect on employee commitment to the organization. The conclusion is that training enhances employee performance as well as employee commitment to the organization. It is therefore, recommended that microfinance banks and all organization should take more active interest in the training of its employees. Keywords— Training, Development, Organization and Performance ______________________________________________________________________________________________________ 1. INTRODUCTION Training is a necessity in the workplace. Without it, employees don't have a firm grasp on their responsibilities or duties. Employee training refers to programs that provide workers with information, new skills, or professional development opportunities. Training in Nigeria could be traced back to 1960 when it was discovered that most of the top government and business positions were occupied by expatriates (Olalere and Adesoji, 2013). The departure of the whites after independence gave rise to a big vacuum of capable indigenous human capital. This prompted the Federal Government of Nigeria to set up a Manpower Board in 1962 following the Ashby Commission's Recommendations (Olalere and Adesoji, 2013). Consequently, the Federal Government of Nigeria established complimentary institutions like the Centre for Management Development (CMD), Administrative Staff College of Nigeria, Industrial Training Fund (ITF), and Federal Training Centre to train and retrain employees as well as give orientation to fresh graduates of formal academic institutions (Olalere and Adesoji, 2013). Training addresses gaps or discrepancies between an ideal and an optimal stage of development. However, from a comparison between desired and actual work methods or between desired and actual results, needs arise on the j ob. Smith and de Cronje (2010) refer to three methods for identifying needs: the generic methods, performance analysis, and competency assessment. Where performance analysis focuses on deficiencies or problems, competency assessment focuses on opportunity for improvement. Trainers identify how they believe people should perform and then design a training program to give the workers the skills they need. Training can only be executed when it has been determined which employees should receive training and what their current levels, knowledge and skills are. Consequently, the assessment of the individual will indicate the range of skills and knowledge that is to be attained. Note that the difference between actual performance and required performance will ultimately form the training gap, and therefore indicate the extent of training needed. Training refers to linking the gap between the present performance and the standard desired performance. Training could be given via different methods such as on the coaching and mentoring, peer’s cooperation and participation by the subordinates.