The Effect of Employee Learning and Growth on Organizational Performance: An Indian Banking Experience

Although there is a logical recognition that learning and growth of employees must lead to improved performance but little empirical evidence is available in the literature to support that effect. Therefore, the present study is aimed to plug this gap by investigating the relationship between employee learning and growth (innovative work behavior, employee empowerment, and employee training) and organizational performance (customer satisfaction and their loyalty) in the context of Indian retail banking. Data for present study was gathered from a sample of 228 employees and 737 customers. All the constructs were measured using previously developed scales and the hypothesized relationships were tested using structural equation modelling. The results of the study evidenced a positive influence of employee learning and growth on organizational performance.