Training and Development and Organizational performance

 


The most important resource in any organization is its people or human resource. To achieve overall goals and objectives in the organization, efficient and effective utilization of human resources is one of the key success factors in the organization. Training and development are one most important functions in Human Resources Management. Everyday importance of training and development increases. Khan et al (2011) explain that the most important factor in the business at present is training hence it increases the efficiency and the effectiveness of both employees and the organization as well.

Training can be defined as improving the employees’ skills and abilities to full fill current requirements of the job. It will help employees to do their current jobs most efficient and effective manner. (Lynton and Pareek, 2011)

Development can be defined as improving the abilities and skills of employees for future job opportunities or carrier enhancement.  This will help employees to take promotions or improve themselves to the next level of the organization. (Lynton and Pareek 2011)

Organizational performance covers the actual output or result which would be expected through its goals and objectives. The prime objective of the organization is to improve the wealth of its shareholders or owners. Luo et al (2012) cited in Tahir (2020) explain “Organization performance can be measured in terms of economic performance (financial and market outcomes) and operational performance (observable indices)”. These performance measurements include profit, sales, return on investment, customer satisfaction and loyalty and competitive advantage derive from capabilities and resources.

Training and development is an ongoing process and there is no end at the same time organization wants to improve its performance on a continuous basis as well. Each year organizations allocate an appropriate value from the annual budget to training and development. These values are based on the expected performance of the organization. If budget allocation would reduce or block utilization, expected performance may be significantly affected.

According to the hypotheses, analysis was done by Khan et al (2011), Training and development have a positive impact on the organization’s overall performance. Specially Training and development, on-the-job training, training design, and delivery style have a correlation with the organizational performance. Figure 1.1 shows how training and development impact the performance of the organization.

Figure 1.1 Training and development and performance of the organization      

Source: Global Journals Inc. (US) (2011) cited in Khan et al (2011)

Further, the organization and management should ensure that training and development are properly designed, implemented, and monitored. Because of this employees’ knowledge, skills, and abilities to do a particular job will improve, and also time-saving, cost reduction, and high employee satisfaction have resulted in a better performance of the organization. If training is not properly done, the cost of the same is useless. Some organization arranges training and development programs as welfare activities such as arranging parties, annual get together and trips, etc. Those focus on entertainment through employee motivation. Sometimes training and development budget is utilized for doing such activities. Based on this, employees get motivated but it does not give results like through training and development.  The government organizations also, arrange foreign training but most of the time those become just foreign tours, and the expected outcome will not come.

As discussed, training and development are one of the most important factors of job performance (Nda and Fard, 2013). In modern times when human capital is the most important asset of an organization, job performance is of utmost required for organizational success. Therefore, it can be easily concluded that due to its direct positive correlation with job performance that training and development have become one of the most important functions in an organization.


References:

Khan, R.A.G., Khan, F.A. and Khan, M.A., (2011). Impact of training and development on organizational performance. Global journal of management and business research, 11(7).

Lynton, R.P. and Pareek, U., (2011). Training for development. New Delhi: SAGE Publishing

Nda, M.M. and Fard, R.Y., (2013). The impact of employee training and development on employee productivity. Global journal of commerce and management perspective, 2(6), pp.91-93.




Comments

  1. Kasun Warnapura16 April 2022 at 12:45

    An organization attempts to help their worker competencies to hit the target,
    even as improvement the staffs are imagined to get more obligations and destiny plans that they have been employed for , and take part in the organization according to their efficiency.
    States that skilled staffs are best organized for the approaching years, to construct brilliant destiny while operating tough for it within side the current. They can be the main supply of power to their organization, and anything cannot stop what they planned for it.
    (Ismael et al.,2021).

    ReplyDelete
  2. Rohitha Samarathunge18 April 2022 at 04:36

    Human capital employed in a particular organization should be treated as an asset of the organization rather than a cost. Organizations generally use a diverse set of human resources policies and procedures specific to recruitment, training, development, evaluation, and organizational commitment to synchronize HRM policies with the organization's core business objectives (Huselid, 1995; Meyer & Smith, 2000).

    ReplyDelete
  3. P.Janaka Chaminda Perera26 April 2022 at 07:42

    As expounded by (Engetou ,2017) The purpose for investigating the effect of worker education and improvement on organizational overall performance becomes inspired via way of means of the commentary that a few agencies do now no longer appear to care approximately enhancing the capability of their workers; they as an alternative frown at and punish any weaknesses of workers. To address the studies problem, the researcher had as important targets to discover: whether or not NFC has education and improvement applications performed for all employees; feasible hurdles inside the implementation of such applications and the realistic outcomes education and improvement have on the overall performance at work
    Reference

    Engetou, E., 2017. The impact of training and development on organizational performance.

    ReplyDelete
  4. maduwanthisilva.blogspot.com5 May 2022 at 03:12

    The training increases the efficiency and effectiveness of both employees as well as organisation.Although employee performance depends on various factors training is a crucial factor in the process because it enhance the employees capabilities. when experienced employees are trained well it creates loyal employees who committed to organizational goals. (Raja, Furqan and Muhammad, 2011(

    ReplyDelete
  5. Lalith Premasiri5 May 2022 at 08:20

    Training and development programs provide a lot of benefits. They enhance employee performance, boost employee productivity, reduce employee turnover, and improve organization culture. Explore the importance of training and development programs for employees and employers through pursuing a career in human resources. (Jerry Shaw, 2019)

    ReplyDelete
  6. Lakshitha Mudunkotuwa 220147127 May 2022 at 11:11

    As you have correctly mentioned training and development programmes of an organization should have a broader strategic view of what to be expected of them as a result and will the costs outweigh the benefits. If not trainings could be less effective or could not be effective at all. In effective training is an additional cost.

    ReplyDelete

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