Impact of Training and Development on Employee Productivity
Training is the organized way in which organizations
provide development and enhance the quality of new and existing employees.
Training is viewed as a systematic approach to learning and development that
improves individuals, groups, and organizations (Goldstein & Ford, 2002)
Khawaja & Nadeem (2013). Thus, it is the series of activities embarked upon
by an organization that leads to knowledge or skills acquisition for growth
purposes. Therefore, contributing to the well-being and performance of human
capital, organizations, and society at large. According to Manju & Suresh
(2011), training serves as an act of intervention to improve an organization's
quality of goods and services in stiff competition by improving the technical
skills of employees.
Development refers to activities leading to the
acquisition of new knowledge or skills for the purposes of growth.
Organizations provide employees with development programs in order to enhance
their capabilities (Abdul Hameed 2011). In today's business environment,
employee development is becoming an increasingly critical and strategic
imperative in organizations (Abdul Hameed 2011). Thus, organizations need to
invest in continuous employee development in order to maintain employees' as
well as the organization's success (Khawaja & Nadeem 2013).
Productivity, as defined in the Oxford dictionary
(2007), is the efficiency with which things are being produced. Employee
productivity, however, is the measure of output per unit of input economically.
It is the log of net sales over total employees (Rohan & Madhumita 2012).
Thus, the employee productivity of an economy as a whole or industry could be
determined.
Training has been invaluable in increasing the
productivity of organizations. Hence, increasing not only employees'
productivity but also organizations’ productivity. Training as a process is one
of the most pervasive ways to enhance the productivity of individuals and
communicate organizational goals to personnel (Ekaterini &
Constantinos-Vasilios, 2009). Rohan & Madhumita (2012) also supported that
investing in training employees on decision-making, teamwork, problem-solving,
and interpersonal relations has a beneficial impact on the organizations’ level
of growth as well as on employees’ productivity. Training affects employees’ behavior
and their working skills, which results in enhanced performance as well as
constructive changes (Satterfield & Hughes, 2007). Training is the most
effective way of motivating and retaining high-quality human resources within
an organization (Kate Hutchings et al., 2009). Also added by Lowry, Simon &
Kimberley (2002), training is a way of enhancing employee commitment and
maximizing employee potential. According to Konings & Vanormelingen (2009),
Colombo & Stanca (2008), and Sepulveda (2005), training is an instrument
that fundamentally affects the successful accomplishment of organizations’
goals and objectives. However, the optimum goal of every organization is to
generate high revenue and maximize profit, and a vital tool to realize this is
an efficient and effective workforce. Thus, a workforce is only efficient and
effective if appropriate training and development are provided, resulting in
productivity.
Figure 01: Relationship Cycle
(Source: Rohan & Madhumita, 2012)
Development programs are worth investing so much in,
as most successful organizations consider the progress of their workforce and
therefore invest in their training. This results in an increase in skill and
competence that improves morale and productivity (Sheeba, 2011). Development
seems to reduce the turnover rate of employees (Deckop et al. 2006). Thus,
advancement opportunities do not only reduce absenteeism but also increase
employees' commitment and satisfaction, which helps reduce turnover (Atif et
al. 2010).
List
of References
Abdul Hameed Aamer Waheed. (2011). Employee
Development and Its Affect on Employee Performance a Conceptual Framework.
International Journal of Business and Social Science Vol. 2 No. 13. pp. 224.
Atif, A., Rehman, I.U., Nasir, A. and Safwan, N.
(2010). Employee Retention Relationship to Training and Development: A
Compensation Perspective. African Journal Of Business Management. Vol. 5(7),
pp. 2679-2685.
Colombo, Emilio & Stanca, Luca. (2008). The Impact
of Training on Productivity: Evidence from a Large Panel of Firms, Available at
SSRN.
Deckop, J.R., Konrad, A.M., Perlmutter, F.D. and
Freely, J.L. (2006). The Effect Of Human Resource Management Practices on The
Retention Of Former Welfare Clients. Hum. Res. Mgt., vol. 45(4). pp 539-559.
Ekaterini Galanou, Constantinos-Vasilios Priporas
(2009). A model for evaluating the effectiveness of middle managers. Training
courses: evidence from a major banking organization in Greece. International
Journal of Training and Development, pp. 221-245.
Goldstein, I.L. and Fort, J.K. (2002). Training in
organizations Needs assessment, development, and evaluation (4th ed.). Belmont,
CA Wadsworth.
Kate Hutchings, Cherrie J. Zhu, Brain K, Cooper,
Yiming Zhang and Sijun Shao (2009). Perceptions of the effectiveness of
training and development of grey-collar workers in the People’s Republic of
China. Human Resource Development International, Vol.12, No.3, pp. 279-296.
Khawaja and Nadeem (2013). Training and Development
Program and its Benefits to Employee and Organization: A Conceptual Study.
European Journal of Business and Management. ISSN 2222-1905 (Paper) ISSN
2222-2839 (Online). Vol.5, No.2, 2013.
Konings, Jozef & Vanormelingen, Stijn. (2009). The
Impact of training on Productivity and Wages: Firm Level Evidence. Discussion
paper No. 244, Available at SSRN.
Lowry, D.S., A. Simon and N. Kimberley. (2002). Toward
improved employment relations practices of casual employees in the New South
Wales registered clubs industry. Human Resource Development Quarterly, Vol. 13,
No1, pp. 53-69.
Manju, S. and Suresh, B.H. (2011). Training Design
Interventions and Implications for the productivity Effectiveness. Synergy,
9(1), 2011, pp. 52-68.
Rohan, S. and Madhumita, M. (2012). Impact of Training
Practices on Employee Productivity: A Comparative Study. Interscience
Management Review (IMR) ISSN: 2231-1513 Volume-2, Issue-2, 2012.
Satterfield, J.M. and Hughes, E. (2007). Emotion
skills training for medical students: a systematic review. Medical Education,
41:935–41.
Sepulveda, Facundo (2005). Training and Productivity:
Evidence for US Manufacturing Industries” Available at SSRN.
Sheeba, Hamid. (2011). A Study of Effectiveness of Training and Development Programmes of UPSTDC, India – An analysis, South Asian Journal of Tourism and Heritage, Vol.4 (1).
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ReplyDeleteRohan & Madhumita (2012) stated that investing in training employees on decision making, teamwork, problem-solving and interpersonal relations has favorable impact on the organizations’ level of growth, as well as affecting on employees’ performance. Training affects employees’ behavior and their working skills which results into employees enhanced performance as well as positive changes (Satterfield & Hughes, 2007).
ReplyDeleteI strongly agree with your statement, Ms. Sulakkana. Shaheen et al. (2013) stated that systematic improvement of the skills, information, and behavior of the trainees is required to perform their required tasks effectively. This puts the employee’s performance as a core issue in the evaluation process of deciding on the training level. According to Amin et al. (2013), training is a development aimed to improve the employees’ performance in their job. The role of training is to develop the performance of the trainees, and this can only be measured through the actual context of work. Barzegar and Shahroz (2011) believe in training as essential for employees and organizations' performance to help them improve the value of work and raise profitability while keeping organization stability safe and decreasing risk to avoid more costly expenses. Through all this, with trained employees, organizations can develop in management and start to change the structure of organizations as national and international entities. This suggests that training should be linked to the organization's missions and goals of performance (Barzegar and Shahroz, 2011).
DeleteLearning should be distinguished from training. ‘Learning is the process by which a person constructs new knowledge, skills and capabilities, whereas training is one of several responses an organization can undertake to promote learning - Reynolds (2002).Investment on training always provide positive feedback. It helps to grow the productivity of the organization directly and indirectly.
ReplyDeleteI agree with your statement. Training is an important ongoing investment in human assets to assist employees in learning skills and acquiring knowledge to achieve organizational goals. To maximize training effectiveness, three major activities of needs assessment, program design and delivery, and training evaluation need to be well-prepared to make trainees satisfied with the training (Barney, 1991).
DeleteI agree with the idea that if training on employee development is correctly conducted it will positively result for both the employee and the organisation(Kreitner,2007).In addition, as specified by Katcher and Snyder (2003) it is identified that employers need their employees to continuously have training and development on capital improvement, moral improvement and ability to adapt to change so that it helps to create a work force that skilfully drives for the organisational excellence.
ReplyDeleteAccording to Heathfield (2012), providing correct staff training and development at the right time brings significant benefits to the institution and improves performance. Organizations provide training to prepare workers to accomplish their jobs as desired, according to Elnaga and Imra (2013), in order to maximize their employees' potential. Through long-term planning, they invest in developing new skills in their workforce, enabling them to cope with uncertain conditions that they may face in the future, thereby improving employee performance through higher levels of motivation and commitment. When employees recognize their organization's interest in them through training programs, they are more likely to participate. Training is essential for establishing a flexible, motivated, and devoted team (Amin, Saeed, Lodhi, Mizna, Simra, & Iqbal, Tehreem, 2013).
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