Employee Training and Performance of Small and Medium Enterprises (SMEs) in Uganda: A case of Nina Interiors and Footsteps Furniture's

Abstract

This study with a title of Employee Training and Performance of Small and Medium Enterprises in Uganda, had a general objective to examine the extent to which employee training influences the performance of Small and Medium Enterprises. Specifically, the study established the extent to which On-the-Job and off the job training programs influenced performance of SMEs. The study used a case study design using both quantitative and qualitative approach on sample of 104 staff comprising of management team and the staff of NINA Interiors and Footsteps Furniture. Data was collected using a questionnaire and interview guide and was analyzed using frequency, percentages, mean and standard deviations, correlation and regression analyses. The study found a high positive significant relationship between on the job training and performance of SME (r = 0.625** and p = 0.000). The simple regression results revealed that on the job training alone predicted 38.4% of the variance in the performance of Nina Interiors and Footsteps Furniture (adjusted R2 = 0.384, t = 8.082, F= 65.318 and significance 0.000). It was found that off the job training had a high positive significant relationship with performance of SME (r = 0.697** and p = 0.000). The simple regression results revealed that off the job training alone predicted 48.1% of the variance in the performance of SMEs (adjusted R2 = 0.481, t = 9.826, F= 96.557 and significance 0.000). The study concluded that inadequate employee mentoring and job rotation on the job programs adversely affected the performance of SMEs in Uganda. The study inferred that the failure to explore formal academic advancement and none formal off the job programs adversely affected the performance of SMEs in Uganda. To enhance revenue generation, profitability and the customer care among SMEs in Uganda, the study recommends that the management of the SMEs with the help of consultants as resource persons should identify and train internal change agents like managers and supervisors on mentoring to gain capabilities in initiating and sustaining career, information, peer, reverse, group and virtual forms of mentoring. This should be complemented by continued use of regular workshops, seminars, conferences, study tours and demonstrations to equip staff with the identified skills gaps supported by management commitment and support through allocation of resources, development of implementation work plans and production of reports related to employee training.