Bridging the Gap Between Learning and Performance: Training and Development Challenges in Banking Industry
Identification of an HRM issue
Through efficient people
management techniques, human resource management (HRM) plays
a critical role in fostering organizational success in
the contemporary banking environment. Among its many
roles, Training and Development (T&D) is particularly
noteworthy as a
strategic instrument that improves employee
competencies, encourages creativity, and synchronizes personal
capacities with organizational objectives. Continuous learning
has become essential for maintaining competitive advantage, especially
in the banking sector, where
technological change, regulatory demands, and changing customer
expectations are ongoing.
The Talent Development Centre
(TDC), which creates and implements a variety of professional development
programs, was established by ABC Bank PLC, a prominent financial institution in
Sri Lanka, in recognition of its significance. These courses are designed to
enhance customer relationship management, leadership, and technical banking
skills. Despite these organized efforts, ABC Bank's T&D function has a few
serious HRM problems that compromise its overall strategic impact.
First, employees' daily work
performance is only partially impacted by what they learn in training sessions.
There may be a gap between training material and working reality because many
employees report having trouble transferring recently learnt information to
real-world job situations. Second, despite limited incorporation of digital
learning platforms and experiential learning strategies that promote active
participation, ABC Bank still mostly relies on conventional classroom-based
teaching techniques. This dependence limits flexibility and does not fully
accommodate the learning preferences of younger, tech-savvy employees.
The disparity in training
possibilities among regional branches is another urgent issue. There are
differences in skill development and career advancement since employees in
metropolitan or head office locations frequently benefit from more frequent and
higher-quality programs than those in rural operations. Furthermore, ABC Bank's
methods for measuring training efficacy remain inadequate, with a limited focus on determining return on investment (ROI) or analyzing the organizational and behavioral consequences of training.
All these problems lead to a
mismatch between ABC Bank's training approach and its larger corporate goals.
This blog critically analyses ABC Bank T&D practices via the prism of
important HRM and learning theories, specifically the Kirkpatrick Four-Level
Evaluation Framework (1996), Kolb's Experiential Learning Model (1984), and
Human Capital Theory. To investigate how employees' learning experiences might
be better designed to improve engagement, practical application, and
organizational impact, insights from Adult Learning Theory (Knowles, 1980) and
Social Learning Theory will also be incorporated.
This blog attempts to provide a
thorough and evidence-based analysis of the current training and development
challenges by fusing theoretical insights into real-world experiences from ABC
Bank's operations. In the end, it offers strategic recommendations to improve
learning outcomes, employee performance, and the bank's long-term
sustainability.
References
ELSEVIER, 2025. https://www.sciencedirect.com. [Online]
Available at: https://www.sciencedirect.com/science/article/abs/pii/S0149718925001636
[Accessed 28 11 2025].
Naveenreddym, 2013. https://www.managementpedia.com.
[Online]
Available at: https://www.managementpedia.com/threads/training-and-development-in-banks.359229/
[Accessed 28 11 2025].
T Chandrasiri, M. L. F. N.
G. S., 2015. https://dl.lib.uom.lk. [Online]
Available at: https://dl.lib.uom.lk/items/add8be75-e23c-4fad-a0b8-9773269e53f6
[Accessed 28 11 2025].
The Lawyers & Jurists,
2025. https://www.lawyersnjurists.com. [Online]
Available at: https://www.lawyersnjurists.com/article/training-development-practices-in-banking-sector
[Accessed 28 11 2025].
This blog provides a very comprehensive analysis of the T&D challenges in the banking sector. I particularly appreciated how Adult Learning Theory and Social Learning Theory were applied to real scenarios at ABC Bank. The integration of theory with practical examples makes the content highly valuable for HR practitioners.
ReplyDeleteThank you for your thoughtful feedback! I’m glad the integration of Adult Learning Theory and Social Learning Theory added value to the analysis. My goal was to bridge academic concepts with real organisational practices, so it’s great to hear that this approach resonated with you.
DeleteExcellent work! The explanation of how ALT and SLT can improve training transfer at ABC Bank was very clear. I also liked the comparison with other sectors like telecom and retail it helps show that this issue is widespread and not limited to the banking industry.
ReplyDeleteThank you for the encouraging words! I’m happy to know that the cross-sector comparison was helpful. Many industries face similar adult-learning challenges, and looking beyond banking provides useful insights for designing more effective training strategies.
DeleteA well-structured and insightful blog! The discussion on training inequality between urban and rural branches is highly relevant to many Sri Lankan banks. The recommendations you propose especially flexible scheduling and blended learning—are practical and actionable.
ReplyDeleteThank you very much for your encouraging feedback. I truly appreciate your recognition of the importance of addressing training inequalities between urban and rural branches, which is indeed a critical HRM challenge in the Sri Lankan banking sector. Your agreement on the practicality of flexible scheduling and blended learning further reinforces the need for banks to adopt more inclusive and accessible training approaches. As noted by Noe (2020), learning strategies that enhance accessibility and flexibility significantly improve employee engagement and skill development. Thank you again for your insightful comment and support.
DeleteI strongly agree with the author’s critical assessment: the central challenge at ABC Bank PLC is not a lack of policy, but a profound gap between T&D policy design and implementation, specifically stemming from an incompatibility with Adult Learning Theory (ALT) and the needs of a decentralized workforce.
ReplyDeleteThe argument is academically sound for the following reasons:
Alignment of Theory and Evidence: The issues identified—inconsistent learning transfer, unequal accessibility across branches, and low engagement with standardized content—are textbook consequences of ignoring ALT principles (Knowles, 1980). Adult learners demand relevance (Readiness to Learn), control (Self-concept), and practical application (Orientation to Learning). ABC Bank’s reliance on centralized, conventional, and often inconveniently scheduled training directly contradicts these needs.
Failure of Evaluation: The inadequate monitoring and evaluation (specifically, neglecting Kirkpatrick Levels 3 and 4) is the crucial missing link. If the bank cannot measure behavioral change in the workplace or organizational impact (ROI), it cannot close the learning-to-performance gap. This oversight confirms the training function is treated as a check-box activity rather than a strategic investment.
The Execution Crisis: The paper correctly highlights that even a robust framework (like the TDC) fails when operational reality—branch workloads, scheduling conflicts—is not integrated into the design. Centralized control, intended to ensure consistency, ironically produces inconsistency of access and quality across the branch network.
In conclusion, the author's position that ABC Bank must transition from a compliance-driven, content-centric model to an ALT-driven, learner-centric, and performance-measured model is the correct strategic path forward.
2. Strategic Recommendation
The solution lies in creating a T&D infrastructure that is decentralized, digital-first, and data-validated.
My primary recommendation is to Institutionalize Performance-Driven Learning Transfer through Local Autonomy and Impact Measurement.
This involves three strategic actions:
Decentralize Scheduling and Delivery (ALT Focus): Grant branch managers and regional heads autonomy over when and how standardized modules are delivered, ensuring alignment with branch operational demands (the "Readiness" factor). This should be coupled with mandatory blended learning structures that prioritize Social Learning Theory (SLT) tools, such as mandatory, structured peer coaching or job shadowing sessions after every e-learning module.
Mandate Kirkpatrick Level 3 & 4 Evaluation (Performance Focus):
Level 3 (Behavior): Implement a mandatory 90-day post-training check-in, where supervisors formally assess and provide feedback on the employee’s application of the new skill in daily tasks. The supervisor’s assessment should be linked to their own annual performance goals.
Level 4 (Results): Link training completion for key areas (e.g., Customer Relationship Management, Risk Compliance) directly to branch-level KPIs (e.g., improved customer satisfaction scores, reduction in compliance errors). This validates the training's ROI and turns T&D into a true strategic driver.
Leverage Digital Learning Ecosystems: Reorient the e-Academy from a passive repository to an active, social learning hub (SLT). This includes interactive discussion forums, micro-learning video bursts for just-in-time support, and mandatory digital collaboration tools for shared problem-solving among distant branches.
Thank you very much for this deeply analytical and academically grounded comment. I sincerely appreciate the way you have expanded on the central argument by linking the bank’s challenges to the core principles of Adult Learning Theory (Knowles, 1980) and to the critical gaps in evaluation practice, particularly in relation to Kirkpatrick Levels 3 and 4. Your explanation clearly illustrates why a policy–practice disconnect persists when training is delivered through a centralized, content-driven model that contradicts adult learner needs such as autonomy, relevance, and immediate applicability.
DeleteI also fully agree with your point that the absence of performance-focused evaluation creates a learning-to-performance gap, ultimately weakening the strategic value of the T&D function. Your emphasis on the “execution crisis” accurately reflects the operational challenges faced by decentralized branch networks in Sri Lanka.
Your recommendations—particularly decentralized scheduling, embedding social learning mechanisms, and enforcing performance-level evaluation—strongly reinforce the strategic direction proposed in the blog. As supported by Knowles (1980), adult learning becomes effective only when learners are empowered and when training design accommodates their readiness, motivations, and contextual realities.
Thank you once again for this excellent contribution. Your insights significantly enrich the discussion and align well with the strategic shift that ABC Bank PLC needs to adopt.
The blog effectively highlights why T&D is not just an HR function but a strategic investment for organizational success. The use of multiple learning theories strengthens the analysis. It would be interesting to see more examples of digital learning success stories in the local context.
ReplyDeleteThank you very much for your thoughtful feedback. I truly appreciate your recognition of the blog’s position that Training & Development functions as a strategic investment rather than a routine HR activity. I am glad that the integration of multiple learning theories—such as Adult Learning Theory and Social Learning Theory—strengthened the overall analysis, as these frameworks are essential for designing impactful learning strategies in modern organizations.
DeleteYour suggestion to incorporate more local digital learning success stories is extremely valuable. As highlighted by Noe (2020), contextual relevance significantly enhances learning transfer, and incorporating Sri Lankan case examples—especially from banks that have successfully implemented digital learning platforms—would certainly enrich the discussion further. I will consider expanding this aspect in future revisions to strengthen the practical application of the analysis.
Thank you once again for your insightful and encouraging comment.
This blog gives a detailed discussion on the training and development issue in the banking industry. I especially like the fact that you combined Adult Learning Theory (Knowles, 1980) and Social Learning Theory (Bandura, 1977) to elaborate on how employees can learn the best way through self-directed, experience-based, and observational learning. The argument on training delivery versus application is a clear example of how the Human Capital Theory (Becker, 1993) encourages the allocation of funds in employee development in order to boost the performance of the organization. The blog is successful in general, making the HRM theory interconnected with practical banking activities.
ReplyDeleteThank you very much for your thoughtful and supportive feedback. I am glad to hear that the integration of Adult Learning Theory (Knowles, 1980) and Social Learning Theory (Bandura, 1977) was effective in demonstrating how employees learn best through autonomy, experience, and observation. Your acknowledgement of the link between training application and Human Capital Theory (Becker, 1993) also reinforces the strategic argument that investment in employee capabilities contributes directly to organizational performance.
DeleteI truly appreciate your recognition of how the blog connects HRM theory with practical realities in the banking sector, as bridging this gap was a key objective of the analysis. Thank you again for your insightful comment and for engaging with the theoretical and practical dimensions of the discussion.
This is a highly relevant and insightful discussion on a challenge many banking institutions continue to face. While the sector invests heavily in training initiatives, the real test lies in ensuring that learning translates into measurable job performance. The gap often emerges due to rapidly evolving customer expectations, regulatory demands, and technology-driven processes that require continuous upskilling.
ReplyDeleteWhat stands out in this blog is the emphasis on aligning training programs with actual workplace needs. Without clear skill mapping, performance metrics, and post-training reinforcement, even the best-designed programs fail to deliver impact. The banking industry must also strengthen coaching, on-the-job learning, and performance support tools to ensure employees can apply new knowledge in real situations.
Overall, bridging this learning–performance divide is not just an HR priority but a strategic necessity for banks to remain competitive, compliant, and customer-centric. This blog effectively highlights the urgency and offers valuable direction for future improvement.
Thank you very much for your detailed and thoughtful feedback. I fully agree with your observation that the true measure of training effectiveness lies in its translation into measurable job performance. As you noted, factors such as evolving customer expectations, regulatory requirements, and technology-driven processes make continuous upskilling critical in the banking sector (Noe, 2020).
DeleteI also appreciate your emphasis on aligning training programs with workplace needs, including skill mapping, performance metrics, and post-training reinforcement. These measures are essential to close the learning–performance gap and ensure that T&D functions as a strategic investment rather than a routine HR activity. Your point about strengthening coaching, on-the-job learning, and performance support tools resonates strongly with Social Learning Theory (Bandura, 1977), which highlights the importance of observational and experiential learning in achieving real-world behavioral change.
Thank you again for your insightful comment and for reinforcing the strategic importance of effective T&D in banking.
This is an insightful analysis of Training and Development challenges within the banking sector. The blog stands out for its depth of research, clarity of structure, and effective integration of multiple HRM theories.
ReplyDeleteI agree on your emphasis on inconsistent scheduling, unequal access across branches, limited customization, and inadequate post-training evaluation. It clearly captures the systemic challenges affecting learning transfer and employee performance.
The practical applications of ALT and SLT are especially useful. By showing how these models can be applied at branch level, through peer mentoring, learning circles, and contextualized scheduling, you offer actionable insights rather than mere theory.
Thank you very much for your thoughtful and supportive feedback. I truly appreciate your recognition of the depth of research and the structured integration of multiple HRM theories in the blog. I completely agree that inconsistent scheduling, unequal access across branches, limited program customization, and inadequate post-training evaluation are key systemic challenges affecting learning transfer and employee performance, particularly in the banking sector (Baldwin & Ford, 1988).
DeleteI am also grateful for your acknowledgment of the practical application of Adult Learning Theory (Knowles, 1980) and Social Learning Theory (Bandura, 1977). Demonstrating how peer mentoring, learning circles, and contextualized scheduling can be implemented at branch level was a key objective, as it ensures that the theoretical frameworks translate into actionable strategies that enhance employee engagement, skill application, and organizational performance.
Thank you again for your supportive and academically insightful comment.
Hello Thiloka, I have to say your blog is an intelligent mixture of academic and personal spheres. It is beyond doubt that you have tried to achieve total clarity, good organization, and ease of following your content. The way you have put forth your ideas with a quiet and self-assured tone is just wonderful, it reflects both comprehension and concern for your work. The posts have the mark of a dedicated person, and it is nice to see you utilizing blogging as an artistic medium to frequently disclose your academic journey. One suggestion showing that your blog can go even further would be to include a bit of personal reflection in every post, what you found interesting, hard, or surprising while performing your task. That could make readers feel more connected to your content. Furthermore, including simple visuals or examples might make your posts even more attractive. All in all, your blog reflects great potential and responsibility. So, don't stop voicing your opinions, as you are creating something valuable, and your voice does matter.
ReplyDeleteThank you very much for your kind and encouraging feedback. I truly appreciate your recognition of the effort to combine academic rigor with clear organization and readability. Your acknowledgement of the balance between theory and practical insights reinforces my commitment to making the blog both informative and engaging for readers.
DeleteI also value your suggestions regarding incorporating personal reflections and practical examples. I agree that sharing insights on what was interesting, challenging, or surprising during the research and writing process can make the content more relatable and enhance reader engagement. Including visuals or illustrative examples is another excellent recommendation that would strengthen the clarity and accessibility of complex concepts, as supported by Mayer’s (2009) Cognitive Theory of Multimedia Learning, which emphasizes that well-designed visuals improve comprehension and retention.
Thank you again for your thoughtful comment and encouragement. Your feedback motivates me to continue developing the blog as both an academic and practical resource.
This post provides a well-structured diagnosis of why training does not always translate into workplace performance, particularly within regulated and fast-changing banking environments. The identification of weak transfer of learning reflects a common gap explained in the Kirkpatrick framework, where organizations invest heavily at Level 1 and 2, but rarely evaluate behavioral change and business outcomes (Kirkpatrick, 1996). The observation about unequal access to development between head office and regional branches also highlights a human capital risk, as capability building becomes uneven across the system (Becker, 1964).
ReplyDeleteThe point on outdated delivery methods is important. Younger banking employees often prefer blended learning and experiential methods, which aligns closely with Kolb’s experiential learning cycle and Knowles’ assumptions of adult motivation (Kolb, 1984; Knowles, 1980). In my view, the post could further explore digital learning design as a strategic lever rather than a substitution for classroom content, especially in customer-facing roles.
Thank you for this insightful and academically grounded feedback. I completely agree with your assessment, especially regarding the persistent challenge of weak learning transfer in many banking institutions. As you mentioned, organizations often focus heavily on Kirkpatrick Levels 1 and 2—reaction and learning—while failing to evaluate behavioral change and organizational impact at Levels 3 and 4 (Kirkpatrick, 1996). This gap directly contributes to training that is well-received but not meaningfully applied in practice.
DeleteYour point about unequal access to training between head office and regional branches is equally important. As Becker’s Human Capital Theory suggests, uneven development creates long-term capability risks and can hinder consistent service quality and performance across the bank (Becker, 1964). Addressing this imbalance is crucial for strengthening system-wide talent pipelines.
I also appreciate your observation on outdated delivery methods. Incorporating blended and experiential learning aligns strongly with Kolb’s experiential learning cycle and Knowles’ principles of adult motivation, ensuring that employees—particularly younger cohorts—engage more deeply and develop practical, job-relevant competencies (Kolb, 1984; Knowles, 1980). Your suggestion to view digital learning design not merely as a replacement for classroom training but as a strategic enhancement is well taken. Integrating scenario-based modules, simulations, and reflective activities could significantly improve learning relevance for customer-facing roles.
Thank you again for adding such a valuable perspective that strengthens the overall analysis.