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ABSTRACT
This study investigates the effect of training and development on employee performance, using Nestlé Nigeria Plc as a case study. The fast-moving consumer goods (FMCG) sector in Nigeria operates under intense competition, rapid technological change, and shifting consumer expectations, all of which place a premium on a well-trained, adaptable workforce. Yet many organisations, including large multinationals, continue to record performance gaps despite committing substantial resources to staff training, suggesting that the design, delivery, and evaluation of training programmes rather than the mere existence of such programmes may be the decisive factor in whether training translates into improved performance. Guided by this concern, the study is designed around four specific objectives: to examine the effect of on-the-job training on employee performance at Nestlé Nigeria Plc; to determine the effect of off-the-job training and development programmes on employee performance; to assess the relationship between training needs assessment and employee performance; and to evaluate the extent to which training and development affect employee productivity. The study adopts a descriptive survey research design set within the positivist tradition, drawing its population from management and non-management staff of Nestlé Nigeria Plc. A structured, close-ended questionnaire anchored on a five-point Likert scale will serve as the primary instrument of data collection, administered to a sample determined using an appropriate sampling formula (such as the Taro Yamane or Krejcie and Morgan formula) applied through a stratified random sampling technique to ensure representation across departments. Data obtained will be analysed using descriptive statistics (frequencies, percentages, means, and standard deviations) to summarise responses, while inferential statistics specifically Pearson Product Moment Correlation and simple/multiple linear regression run through the Statistical Package for the Social Sciences (SPSS) will be used to test the stated hypotheses at the 5% level of significance. On the basis of the reviewed literature and the theoretical framework anchored on Human Capital Theory and the Kirkpatrick Training Evaluation Model, the study anticipates that on-the-job training, off-the-job training and development programmes, and systematic training needs assessment will each show a statistically significant positive relationship with employee performance and productivity at Nestlé Nigeria Plc. It is expected that the findings will reinforce the practical case for evidence-based training design, periodic needs assessment, and continuous evaluation of training outcomes, and the study will conclude with recommendations for strengthening the link between training investment and measurable performance gains within the organisation and the wider Nigerian FMCG sector.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Organisations across the world increasingly recognise that sustainable competitive advantage rests less on physical or financial assets and more on the quality, competence, and adaptability of their human capital. In a business environment defined by rapid technological change, evolving customer expectations, and intensifying competition, the capacity of employees to acquire new skills and apply them efficiently has become a central determinant of organisational survival and growth (Oladapo, 2020). Training and development have therefore moved from being viewed as a discretionary staff welfare activity to being treated as a strategic investment through which firms build the internal capabilities needed to execute their business strategy.
Training refers to a deliberately organised set of learning activities through which employees acquire the specific knowledge, skills, and attitudes required to perform their current job roles more effectively, while development is typically understood as a broader, longer-term process aimed at preparing employees for future responsibilities and career growth (Goswami & Saha, 2021, as cited in Igudia, 2022). Employee performance, the outcome variable of interest in this study, is commonly conceptualised in terms of the quality and quantity of work produced, efficiency in task execution, adherence to standards, and overall contribution to organisational goals. The presumed link between training and performance rests on the logic that better-equipped employees make fewer errors, work faster, adapt more readily to new processes, and contribute more meaningfully to team and organisational outcomes (Abu Daqar & Constantinovits, 2021).
Nestlé Nigeria Plc, a subsidiary of the Swiss multinational Nestlé S.A. and one of the longest-established and largest fast-moving consumer goods companies operating in Nigeria, provides a fitting context for this study. As a manufacturer of well-known food and beverage brands, the company operates in a sector characterised by strict quality and safety standards, continuous product innovation, and a highly competitive retail landscape, all of which require a workforce that is consistently updated on new techniques, technologies, and regulatory requirements. Multinational subsidiaries such as Nestlé Nigeria Plc are often assumed to run more structured and better-resourced training programmes than smaller indigenous firms, making it analytically useful to examine whether, and how strongly, such investment in training actually translates into measurable gains in employee performance.
Empirical evidence from the Nigerian context on this question, however, remains mixed. While several studies report a positive and significant relationship between training and employee or organisational performance (Oladapo, 2020; Okolie & Patrick, 2021; Olawale & Chukwuma, 2022), other studies have found the relationship to be weak, insignificant, or even negative in specific settings (Huang, 2021, as cited in studies on Nigerian SMEs). This inconsistency in findings, combined with the relative scarcity of firm-specific studies focused on large multinational manufacturers in Nigeria, underscores the need for focused, organisation-level research such as the present study of Nestlé Nigeria Plc.
1.2 Statement of the Problem
Despite the widely accepted theoretical proposition that training and development enhance employee performance, many Nigerian organisations continue to experience persistent performance gaps, high error rates, low productivity, and difficulty adapting to new processes, notwithstanding substantial and recurring expenditure on staff training programmes. This apparent disconnect between training investment and performance outcomes raises important questions about the effectiveness of how training is designed, delivered, and evaluated within organisations operating in Nigeria.
A recurring problem identified in the literature is that training programmes are often designed without a rigorous prior assessment of actual skill gaps, resulting in generic content that fails to address the specific competency deficits of employees in particular roles (Okpimah & Red-Well, 2022). Where training needs assessment is weak or absent, organisations risk investing scarce resources in training interventions that employees perceive as irrelevant, poorly targeted, or disconnected from the realities of their daily tasks, thereby limiting any resultant improvement in performance.
A further complication is the mixed and sometimes contradictory nature of empirical findings on the training–performance relationship within the Nigerian business environment. While some researchers report strong positive effects of training on performance in manufacturing and service firms (Okolie & Patrick, 2021; Abdulrahman & Mshelia, 2022), others find that the relationship is statistically weak or insignificant once other organisational factors are controlled for, suggesting that contextual and firm-specific factors substantially moderate the training–performance link (Huang, 2021). Much of the existing Nigerian literature on training and performance has also concentrated on the public sector, small and medium enterprises, or the banking and educational sectors, leaving a comparative gap in firm-level evidence from large multinational manufacturing companies such as Nestlé Nigeria Plc, where training infrastructure, budget, and delivery mechanisms may differ markedly from those of smaller or public-sector organisations.
It is against this backdrop of inconsistent empirical evidence, weak alignment between training content and job-specific needs, and a scarcity of firm-specific studies on large FMCG multinationals that this study seeks to examine the effect of training and development on employee performance at Nestlé Nigeria Plc, with a view to generating context-specific evidence that can inform both organisational practice and the broader academic discourse.
1.3 Objectives of the Study
The general objective of this study is to examine the effect of training and development on employee performance at Nestlé Nigeria Plc. The specific objectives are to:
- examine the effect of on-the-job training on employee performance at Nestlé Nigeria Plc;
- determine the effect of off-the-job training and development programmes on employee performance at Nestlé Nigeria Plc
- assess the relationship between training needs assessment and employee performance at Nestlé Nigeria Plc
- evaluate the extent to which training and development affect employee productivity at Nestlé Nigeria Plc.
1.4 Research Questions
In line with the objectives stated above, the study seeks to answer the following research questions:
- What is the effect of on-the-job training on employee performance at Nestlé Nigeria Plc?
- What is the effect of off-the-job training and development programmes on employee performance at Nestlé Nigeria Plc?
- What is the relationship between training needs assessment and employee performance at Nestlé Nigeria Plc?
- To what extent do training and development affect employee productivity at Nestlé Nigeria Plc?
1.5 Research Hypotheses
The following hypotheses, stated in their null form, are formulated to guide the study:
H01: On-the-job training has no significant effect on employee performance at Nestlé Nigeria Plc.
H02: Off-the-job training and development programmes have no significant effect on employee performance at Nestlé Nigeria Plc.
H03: There is no significant relationship between training needs assessment and employee performance at Nestlé Nigeria Plc.
H04: Training and development have no significant effect on employee productivity at Nestlé Nigeria Plc.
1.6 Significance of the Study
This study is significant to several categories of stakeholders. To the management of Nestlé Nigeria Plc, the findings will provide empirical evidence on which specific dimensions of training and development yield the strongest performance returns, thereby supporting more informed decisions on the design and allocation of training budgets. To human resource practitioners more broadly, the study offers a firm-level case that can inform the structuring of training needs assessment, delivery methods, and evaluation frameworks within similar FMCG and manufacturing organisations in Nigeria.
To employees, a clearer understanding of how training and development influence performance can support advocacy for more relevant, well-structured learning opportunities that enhance both individual competence and career progression. To government and policymakers concerned with industrial productivity and skills development, the study contributes context-specific evidence that can inform workforce development policy for the manufacturing sector. Finally, to the academic community, the study extends the existing body of Nigerian literature on training and performance much of which has focused on SMEs, banking, and the public sector by providing firm-specific evidence from a large multinational manufacturing company, and it offers a reference point for future comparative or replicative research.
1.7 Scope of the Study
This study is delimited in content to the effect of training and development on employee performance, focusing specifically on on-the-job training, off-the-job training and development programmes, and training needs assessment as independent constructs, and employee performance and productivity as the dependent constructs. Organisationally, the study is restricted to Nestlé Nigeria Plc, with respondents drawn from management and non-management staff of the company. Geographically, data collection will be concentrated on Nestlé Nigeria Plc’s operational locations within Nigeria, particularly its offices and manufacturing facilities in Lagos State, where the company’s corporate headquarters and a significant share of its workforce are based.
In terms of methodological and practical limitations, the study is constrained by the time and financial resources typically available to an academic research project, which limit the sample size and the geographical spread of data collection. The reliance on a self-administered questionnaire also introduces the possibility of response bias, as respondents may provide socially desirable answers rather than fully candid assessments of training effectiveness. Additionally, because the study focuses on a single large multinational organisation, the findings may not be readily generalisable to smaller firms or to organisations outside the FMCG manufacturing sector, and this limitation is acknowledged in the interpretation and application of the study’s conclusions.
1.8 Definition of Terms
For clarity and to avoid ambiguity in interpretation, the key terms used in this study are defined as follows:
- Training: A planned, systematic process through which employees acquire specific knowledge, skills, and competencies needed to perform their current job roles more effectively.
- Development: A longer-term, forward-looking process aimed at preparing employees for future roles, greater responsibility, and career advancement within the organisation.
- Employee Performance: The measurable output of an employee’s work in terms of quality, quantity, efficiency, and contribution to organisational objectives.
- On-the-Job Training: A method of training delivered at the actual workplace while the employee performs regular job duties, such as coaching, mentoring, and job rotation.
- Off-the-Job Training: Training conducted away from the immediate work environment, such as classroom instruction, workshops, seminars, and external courses.
- Training Needs Assessment: A systematic process of identifying gaps between employees’ current competencies and the competencies required for effective job performance.
- Human Capital: The collective knowledge, skills, experience, and abilities embodied in an organisation’s workforce that contribute to economic and organisational value.
- Productivity: The ratio of output produced to the input (time, effort, or resources) expended by an employee or organisation.
- Human Resource Development (HRD): An organised set of activities and processes, including training, career development, and organisational development, aimed at improving individual and organisational effectiveness.
- Job Performance Evaluation: The formal process through which an employee’s work output and behaviour are systematically assessed against set standards or objectives.
REFERENCES
Abdulrahman, A., & Mshelia, A. G. (2022). Impact of training and development on employee performance: A case study of Ramat Polytechnic, Maiduguri and Federal Polytechnic, Damaturu. International Journal of Advanced Academic and Educational Research, 13(6), 66–82.
Abu Daqar, M., & Constantinovits, M. G. (2021). The impact of training on banks employee performance. Hungarian Agricultural Engineering, (39), 22–28. https://doi.org/10.17676/hae.2021.39.22
Huang, T. C. (2021). The relation of training practices and organizational performance of small and medium size enterprises. Education + Training, 43(8/9), 437–444.
Igudia, P. O. (2022). Employee training and development, and organisational performance: A study of small-scale manufacturing firms in Nigeria. American Journal of Economics and Business Management, 5(5).
Okolie, U. C., & Patrick, M. (2021). Effective talent acquisition and employee performance in selected firms in Lagos State. Journal of Contemporary Human Resource Studies, 9(4), 101–117.
Okpimah, E. S. A., & Red-Well, E. E. (2022). Training and employee job performance of private universities in Delta State, Nigeria. International Journal of Management Studies & Entrepreneurial Development, 3(2), 37–50.
Oladapo, V. (2020). Training and development practices and their effect on employee job performance in the Nigerian manufacturing sector. Global Journal of Business Research, 14(3), 95–106.
Olawale, T., & Chukwuma, A. E. (2022). Human capital development and employee performance in the manufacturing sector. Journal of African Human Resource Development, 14(2), 33–45.