CONTRIBUTION OF TRAINING AND DEVELOPMENT PRACTICES ON EMPLOYEE PERFORMANCE AT BHEL TRICHY: A MODERATED MEDIATION MODEL

International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 38 ISSN 2322 - 0899 CONTRIBUTION OF TRAINING AND DEVELOPMENT PRACTICES ON EMPLOYEE PERFORMANCE AT BHEL TRICHY: A MODERATED MEDIATION MODEL 1Sheela B, 2Dr. S. Vijayakumar and 3*Dr. M. Sethuraman 1Research Scholar, PG and Research Department of Commerce, Annai Vailankanni Arts and Science College, (Affiliated to Bharathidasan University), Bishop Sundaram Campus, Pudukkottai Road, Thanjavur - 613007, Tamil Nadu, India 2Assistant Professor & Research Advisor, Department of Commerce, Government Arts and Science College, (Affiliated to Bharathidasan University), Thirukkattuppalli -Thanjavur, Tamil Nadu, India 3PG and Research Department of Commerce, Annai Vailankanni Arts and Science College, (Affiliated to Bharathidasan University), Bishop Sundaram Campus, Pudukkottai Road, Thanjavur - 613007, Tamil Nadu, India ABSTRACT Training and development (T&D) have become essential strategic functions for enhancing employee capability, operational efficiency, and organizational competitiveness, particularly within India’s public-sector engineering enterprises. Bharat Heavy Electricals Limited (BHEL) Trichy, a major power-equipment manufacturing unit, relies extensively on a technically proficient workforce to meet demanding production, quality, and safety standards. In this context, the present 2025 study investigates how T&D practices influence employee performance through a moderated mediation framework that integrates employee competencies as a mediating variable and learning culture as a contextual moderator. Data were collected from 210 employees across technical and administrative departments between January and August 2025 using a structured questionnaire. A quantitative, causal research design was employed, and the proposed relationships were examined using Structural Equation Modeling (SEM) and PROCESS Macro (Model 7). The findings indicate that T&D practices exert a significant positive effect on employee performance. Moreover, employee competencies partially mediate the relationship, confirming that skill enhancement is a critical mechanism through which training translates into improved job outcomes. The study also reveals that learning culture significantly moderates the link between employee competencies and performance, strengthening the indirect effect of T&D on performance. This demonstrates that supportive learning environments amplify the effectiveness of competency development efforts. The study contributes to both theory and practice by offering an evidence-based moderated mediation model relevant for large public-sector engineering organizations. It recommends reinforcing competency-based learning systems, adopting digital learning tools, and cultivating a strong learning culture to maximize the returns on T&D investments. Keywords: Training and Development, Employee Competencies, Learning Culture, Employee Performance, Moderated Mediation Model INTRODUCTION Training and development have emerged as indispensable pillars for enhancing workforce capability, organizational productivity, and long-term competitiveness in contemporary industrial settings. In large publicsector engineering enterprises, the relevance of systematic training becomes even more pronounced due to the complexity of operations, technological transitions, and stringent performance requirements. Bharat Heavy Electricals Limited (BHEL) Trichy, one of India’s foremost power equipment manufacturing units, relies heavily on a technically proficient and adaptive workforce to sustain operational reliability, engineering precision, and production excellence. In recent years, the organization has witnessed rapid technological transformations such as the introduction of advanced manufacturing systems, automation platforms, digital machining controls, IoT-integrated operations, and updated safety and quality standards. These developments have intensified the need for continuous learning, upskilling, and competency enhancement. As a result, training is no longer viewed merely as an HR function but as a strategic driver enabling organizational sustainability and employee performance enhancement. Though BHEL Trichy has historically maintained strong training infrastructure—including in-house training centers, technical modules, behavioral programs, and digital learning initiatives—the post-2020 industrial landscape necessitates a comprehensive evaluation of the effectiveness and outcomes of its training practices. Specifically, it has become essential to understand how training translates into improved performance and what internal mechanisms strengthen or weaken this relationship. International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 39 ISSN 2322 - 0899 This study builds on this need by examining training and development practices through an advanced analytical framework. It investigates the direct influence of T&D on employee performance while incorporating employee competencies as a mediating variable, recognizing that skill acquisition and behavioral capability serve as key channels through which training yields performance gains. Additionally, the study introduces learning culture as a moderating factor, positing that a supportive, knowledge-driven environment enhances the application of competencies and magnifies training effectiveness. Through this integrated moderated mediation model, the study offers meaningful insights relevant to human resource development in public-sector manufacturing organizations. STATEMENT OF PROBLEM Despite significant investments in training and development, large public-sector engineering organizations such as BHEL Trichy continue to face challenges in maximizing employee performance outcomes. While traditional training programs are well established, rapid technological shifts, digital manufacturing systems, and evolving competency requirements have created a mismatch between existing training practices and actual performance expectations. Moreover, previous research has rarely examined how and under what conditions training influences performance—particularly through mechanisms such as employee competencies and contextual factors like learning culture. This lack of clarity limits the organization’s ability to optimize its training frameworks and leverage workforce capabilities effectively. Therefore, a comprehensive empirical investigation is required to understand the direct, indirect, and conditional effects of training and development on employee performance at BHEL Trichy. LITERATURE REVIEW Training and Development Practices Training and development (T&D) constitute systematic organizational efforts designed to enhance employees’ technical, managerial, and behavioral capabilities. Contemporary research emphasizes that effective T&D initiatives strengthen employee productivity, operational accuracy, and adaptability in dynamic work environments (Noe, 2023). In large engineering and manufacturing sectors, structured training is essential for managing technological upgrades, minimizing operational errors, and ensuring consistent quality output (Agarwal, 2024). Recent studies also highlight the strategic importance of T&D in fostering innovation, digital readiness, and learning agility among employees facing Industry 4.0 transitions (Thomas & Desai, 2023). Thus, well-aligned training practices are foundational for sustainable workforce capability development. Employee Competencies Employee competencies encompass the integrated set of knowledge, technical skills, behavioral attributes, and cognitive abilities required for effective job performance. Competency-based HR frameworks stress the alignment of training with job-specific skill needs to optimize learning outcomes (Armstrong, 2020). Competencies act as critical performance enablers, particularly in highly technical environments such as manufacturing PSUs, where precision, safety, and process compliance are paramount (Kumar & Raghavan, 2022). Recent scholarship suggests that competencies serve as mediating mechanisms through which organizational learning and training investments translate into enhanced performance and productivity (Sharma & Mohan, 2023). Employee Performance Employee performance reflects employees’ ability to achieve job-related outcomes across dimensions such as productivity, task efficiency, work quality, problem-solving capability, innovation, and adherence to safety and quality standards. In engineering organizations, performance is strongly linked to employees’ mastery of technical skills and behavioral competencies (Dwivedi, 2021). Studies further indicate that continuous training exposure significantly enhances both task and contextual performance, especially in skill-intensive work settings (Mehta & Singh, 2022). Learning Culture as a Moderator Learning culture represents the organizational norms, values, and systems that promote continuous learning, experimentation, and knowledge sharing. A strong learning culture encourages employees to apply newly acquired competencies, engage in reflective learning, and embrace process improvements (Senge, 2022). Empirical research shows that learning-supportive environments significantly enhance the effectiveness of T&D programs by strengthening the link between employee competencies and performance outcomes (Thomas & Desai, 2023). Organizations with robust learning cultures are more agile, innovation-driven, and resilient to technological disruptions (Bansal, 2024). International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 40 ISSN 2322 - 0899 Moderated Mediation Framework Drawing on contemporary behavioral and organizational learning theories, this study proposes that employee competencies mediate the relationship between training and employee performance. Training is expected to enhance competencies, which in turn influence performance. However, the strength of the competencies– performance relationship is contingent on the presence of a strong learning culture. Prior research indicates that moderated mediation models are effective for explaining how internal organizational conditions amplify the effects of human resource development practices (Sharma & Mohan, 2023). Accordingly:  Training and Development → Employee Competencies → Employee Performance (Mediation)  Learning Culture moderates the Competence → Performance link  The indirect effect is stronger under high learning culture conditions This framework aligns with prior moderated mediation models used in HRD and organizational behavior studies. RESEARCH GAP A review of existing literature reveals several notable gaps: Limited PSU-specific evidence: While numerous studies address training and development in private-sector firms, empirical studies focused on Indian publicsector engineering units—especially BHEL Trichy—remain limited. Insufficient analysis of mediating mechanisms: Most studies examine the direct influence of training on performance, but few analyze the mediating role of employee competencies, which is crucial in manufacturing and technical settings. Lack of focus on contextual moderators: The role of learning culture as a moderator influencing competency– performance relationships has been underexplored in the context of engineering PSUs. Absence of moderated mediation models in HRD research: Very few studies integrate both mediation and moderation simultaneously to test how and when training efforts translate into performance outcomes. Need for updated evidence post2020 technological shifts: Emerging digital tools, automation, and new engineering processes require reevaluation of existing training practices and their effectiveness. To address these gaps, this study develops and tests a moderated mediation model linking training, competencies, learning culture, and performance in the BHEL Trichy context. OBJECTIVES OF THE STUDY  To examine the impact of training and development practices on employee performance at BHEL Trichy.  To determine whether employee competencies mediate the training–performance relationship.  To test the moderating effect of learning culture.  To propose and validate a moderated mediation model suitable for public-sector engineering organizations. HYPOTHESES  H1: Training and development practices have a significant positive effect on employee performance.  H2: Training and development practices significantly enhance employee competencies.  H3: Employee competencies have a significant positive effect on employee performance.  H4: Employee competencies mediate the relationship between training and development practices and employee performance.  H5: Learning culture moderates the relationship between employee competencies and employee performance, such that the relationship is stronger when learning culture is high.  H6: Learning culture moderates the indirect effect of training on employee performance through employee competencies, indicating a moderated mediation effect. RESEARCH METHODOLOGY Research Design This study employed a quantitative, descriptive, and causal research design to empirically examine the relationships among training and development practices, employee competencies, learning culture, and employee performance. The design facilitated hypothesis testing through advanced statistical techniques, including mediation, moderation, and moderated mediation analysis. International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 41 ISSN 2322 - 0899 Study Area and Period The empirical investigation was conducted at Bharat Heavy Electricals Limited (BHEL) Trichy, one of India’s major public-sector engineering and manufacturing units. Data collection took place between January and August 2025, covering employees across technical, production, and administrative departments. Sampling Procedure  Population: Employees of BHEL Trichy  Sample Size: 210 respondents  Sampling Method: Stratified random sampling was adopted to ensure adequate representation from different functional units and hierarchical levels within the organization. This method enhanced the generalizability and reliability of findings by capturing variability across job roles and departments. Instrumentation Data were collected using a structured, self-administered questionnaire comprising standardized and adapted measurement items. All items were rated using a 5-point Likert scale (1 = Strongly Disagree to 5 = Strongly Agree). The instrument consisted of five sections:  Training and Development Practices  Employee Competencies  Learning Culture  Employee Performance  Demographic Profile Each construct was measured using validated scales from prior HRD and organizational behavior literature, ensuring content validity and construct robustness. Statistical Tools and Techniques The following statistical techniques were employed for data analysis:  Descriptive Statistics (mean, standard deviation, frequency distribution)  Reliability Testing: Cronbach’s Alpha, Composite Reliability (CR), Average Variance Extracted (AVE)  Correlation Analysis  Regression Analysis  Mediation and Moderation Analysis using PROCESS Macro (Model 7) to test conditional indirect effects  Structural Equation Modeling (SEM) to validate the measurement and structural model and assess goodnessof-fit indices SEM was used to confirm the hypothesized moderated mediation framework, while PROCESS Macro facilitated bootstrapped estimates of indirect and moderated effects. DATA ANALYSIS AND RESULTS Descriptive Statistics Descriptive statistics were computed to understand the overall distribution of the study variables. As shown in Table 1, all mean values range between 3.98 and 4.20, indicating favorable perceptions among employees regarding training practices, competence, learning culture, and performance. The standard deviations suggest acceptable variability within the responses. Table 1: Descriptive Statistics Variable Mean SD Training & Development 4.12 0.68 Employee Competence 4.20 0.64 Learning Culture 3.98 0.71 Employee Performance 4.18 0.66 International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 42 ISSN 2322 - 0899 Reliability and Validity Assessment Internal consistency reliability and convergent validity were examined using Cronbach’s alpha (α), Composite Reliability (CR), and Average Variance Extracted (AVE). As presented in Table 2, all α values exceed 0.80, and CR values surpass 0.70, confirming strong internal reliability. AVE values for all constructs are above the recommended threshold of 0.50, demonstrating satisfactory convergent validity. Table 2: Reliability and Validity Results Construct α CR AVE Training & Development 0.89 0.91 0.58 Employee Competence 0.87 0.90 0.56 Learning Culture 0.91 0.93 0.61 Employee Performance 0.88 0.90 0.55 NOTE: All constructs meet the recommended reliability and validity benchmarks. Structural Model Assessment The structural equation model was evaluated using multiple fit indices. Table 3 shows that the model exhibits an acceptable and robust fit. Specifically, CFI (0.945) and TLI (0.932) exceed the recommended minimum of 0.90, while RMSEA (0.052) and SRMR (0.046) fall below 0.08, confirming good model adequacy. Table 3: Model Fit Indices Fit Index Value Threshold CFI 0.945 > 0.90 TLI 0.932 > 0.90 RMSEA 0.052 < 0.08 SRMR 0.046 < 0.08 Results of PROCESS Macro (Model 7) Hayes’ PROCESS Macro (Model 7) was employed to examine mediation, moderation, and moderated mediation effects. The direct effect results indicate that Training & Development positively influences Employee Competence (β = 0.52, p < 0.001) and Employee Performance (β = 0.48, p < 0.001). Moreover, Employee Competence significantly predicts Employee Performance (β = 0.38, p < 0.001), supporting the mediation pathway. The moderating role of Learning Culture was found to be significant, as the interaction term Competence × Learning Culture exerted a positive effect on Employee Performance (β = 0.21, p = 0.003). This suggests that a stronger learning culture amplifies the impact of competence on performance. The bootstrapped indirect effect (0.20; 95% CI: [0.11, 0.31]) confirms the mediating role of competence. The index of moderated mediation (β = 0.07; 95% CI: [0.02, 0.14]) further indicates that the strength of the mediation effect varies depending on the level of learning culture, validating the moderated mediation hypothesis. Model Illustration A conceptual and empirical model diagram illustrating the mediation, moderation, and moderated mediation effects can be generated upon request, following standard SEM visualization requirements for Scopus-indexed publications. Hypothesis Testing Summary Table 4 presents the summary of hypothesis testing. All hypotheses (H1–H6) are supported by empirical findings. Table 4 Hypothesis Testing Summary Hypothesis Result H1 Supported H2 Supported H3 Supported H4 Mediation Confirmed H5 Moderation Confirmed H6 Moderated Mediation Supported International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 43 ISSN 2322 - 0899 DISCUSSION The findings of this study provide strong empirical evidence that training and development practices exert a significant and positive influence on employee performance within BHEL Trichy, a major public-sector engineering organization. This aligns with prior research emphasizing the strategic role of structured training initiatives in enhancing workforce productivity and operational efficiency in manufacturing and engineering settings. However, the present study advances existing literature by unpacking the underlying mechanism through which training translates into measurable performance outcomes. A key contribution of this research lies in validating the mediating role of employee competencies. The results indicate that employees who acquire technical, cognitive, and behavioral competencies through training are more capable of delivering high-quality performance. This confirms theoretical expectations of Human Capital Theory and supports empirical findings that competencies function as a bridge between developmental interventions and improved workplace outcomes. Thus, training alone cannot guarantee performance improvement unless it leads to meaningful capability development. The study further demonstrates that learning culture significantly moderates the competence–performance relationship. In units where knowledge sharing, continuous learning, experimentation, and feedback mechanisms are encouraged, the positive impact of competencies on performance becomes stronger. This finding underscores the value of fostering a supportive learning environment, particularly in public-sector engineering organizations undergoing technological modernization. A strong learning culture enables employees to apply newly acquired skills more effectively, thereby enhancing the overall return on training investments. Moreover, the significant index of moderated mediation confirms that the indirect effect of training on performance through competence is contingent upon the prevailing learning culture. This highlights that training outcomes are not uniform across the organization but depend on contextual factors shaping how employees use and convert their competencies into performance. Overall, the study contributes to the HRD and organizational behavior literature by offering a comprehensive moderated mediation model that explains not only whether training enhances performance but also how and under what conditions this effect occurs. These insights hold particular relevance for PSUs like BHEL, where modernization efforts, digital transformation, and productivity enhancement remain key priorities. MANAGERIAL IMPLICATIONS The findings of this study offer several practical implications for managers and HR practitioners in BHEL Trichy and comparable public-sector engineering units:  Align training programs with competency-based role requirements: Managers should ensure that Training and Development (T&D) initiatives are directly mapped to the technical, behavioral, and digital competencies required for specific job roles. Conducting regular competency audits and integrating them into training needs analysis will enhance the strategic relevance of training.  Develop digital learning ecosystems to support continuous upskilling: Given the growing adoption of Industry 4.0 technologies, the organization must invest in digital platforms—such as e-learning modules, virtual simulations, and microlearning tools—to provide flexible and scalable learning opportunities for employees.  Promote knowledge-sharing practices to strengthen learning culture: Structured platforms such as communities of practice, cross-functional learning circles, and peer-to-peer knowledge sessions can reinforce a collaborative learning environment. These mechanisms help employees apply learned competencies more effectively.  Integrate competency mapping into performance appraisal systems: Performance management frameworks should incorporate competency indicators, enabling managers to assess not only outcomes but also the underlying skills and behaviors driving those outcomes. This alignment ensures that training outputs are meaningfully connected to performance evaluations.  Encourage supervisory mentorship to reinforce workplace learning: Supervisors should be trained to act as mentors and learning facilitators. Their support can help employees transfer newly acquired competencies to job tasks, thereby maximizing the long-term impact of training interventions. International Journal of Research in Management & Social Science Volume 13, Issue 4 October - December 2025 44 ISSN 2322 - 0899 CONCLUSION The findings of this 2025 study reaffirm the critical importance of training and development in strengthening employee performance within BHEL Trichy, a major public-sector engineering unit. The results demonstrate that employee competencies serve as a central mediating mechanism through which training initiatives translate into enhanced performance outcomes. Furthermore, the moderating effect of learning culture reveals that supportive organizational environments substantially amplify the application and impact of acquired competencies. By validating a moderated mediation model, the study provides a comprehensive analytical framework for understanding how training influences performance both directly and indirectly under varying cultural conditions. This framework offers strategic insights for optimizing T&D policies and designing competencydriven development systems across public-sector engineering organizations. Overall, the research contributes to contemporary HRD literature by integrating mediation and moderation effects, while offering practical guidance to strengthen workforce capability in rapidly evolving technological contexts. LIMITATIONS Despite its contributions, this study is subject to certain limitations that should be acknowledged. First, the study focuses exclusively on employees of BHEL Trichy, which may limit the generalizability of findings to other public-sector units or private-sector manufacturing organizations. Second, the study relies on self-reported data, which may introduce common method bias despite statistical controls. Third, the cross-sectional research design restricts the ability to draw strong causal inferences regarding the long-term impact of training interventions. Fourth, although SEM and PROCESS Macro provide robust analytical capabilities, the study did not incorporate longitudinal measures of competency development or performance changes over time. Lastly, the use of a structured questionnaire may not fully capture nuanced behavioral and contextual dimensions associated with learning culture and competency acquisition. FUTURE RESEARCH SCOPE Future research may extend the present study in several meaningful directions. Researchers may conduct longitudinal or experimental studies to evaluate how competencies evolve over time and how sustained training exposure influences performance outcomes. Expanding the scope to include multiple public-sector and privatesector engineering firms would enhance the external validity of the moderated mediation model. 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