Training and Development as a Human Resource Practice, Academic Theory of HRM - Literature review Example

Name: xxxxxxxxxx Course: xxxxxxxxxx Institution: xxxxxxxxxx Title: Human Resource Practice Date: xxxxxxxxxxxxx Human Resource Practice Introduction Human resource management (HRM) practices are strategies or tactics used by firms to effectively manage their human capital. To this end, HRM has been identified as a tool that can be used to give an organization or a firm competitive advantage in the market place when used effectively (Guest 1999).HRM practices include selection and recruitment, training, employee motivation and retention, performance and appraisal systems, compensation and pay or employee services including benefits. Delaney and Godard (2001) studied the impact of HRM practices on perceptions of organizational performance. They tested the hypothesis that progressive HRM practices-or HRM practices aimed at improving employee skills, compensation and in general motivating them-are positively correlated with the perceptions of the organization’s performance in terms of profitability. Their results find a statistically significant positive correlation between the progressive HRM practices and the perceptions of the organization’s performance. The direct implication of the result is that a greater scope and intensity of these progressive HRM practices generally improve an organization’s profitability (Delaney & Godard 2001). In this paper, the focus shall be on training and development as a HRM practice. This paper will explore training and development using the Academic theory of Human Resource Management. Through this theory, this paper will depict the factors that motivate employees and the skills required to manage a team. Moreover, through the example of existing firms this paper will illustrate how training and development as a HRM practice can contribute to increased organizational performance and competitiveness. Academic theory of HRM Research in human resource management has over the years contributed to the existing organizational practices of HRM. Research findings show that there exists a link between HRM practices and employee motivation, performance, skills and commitment towards organizational goals. The Academic theory of HRM recommends the adoption of particular practices in HRM that will motivate employee thus increasing organizational performance. According to Pfeffer (1994), practices such as extensive training, employment security, high pay, team work and sharing information are among the practices geared towards motivating employees and increasing organizational competitiveness. The contingency outlook to HRM accentuates that HRM practices are bound to enhance organizational performance when there is a vertical fit between the organizational strategy and HRM practices. This fit ensures that there is consistency between HRM practices, policies and the business strategy (Pfeffer 1994). The main premise of the Academic theory of HRM is that employees are not machines and there is therefore a need to conduct an interdisciplinary evaluation of employees in the workplace. Knowledge in fields such as industrial relations, psychology, economics and sociology offer a framework of understanding and implementing HRM practices that are geared towards actualizing organizational competitiveness. The key objective of developing human resource revolves around enhancing resourcefulness in a work organization through formulating solid educational policies, trainings and employment at different levels (Pfeffer 1994). The development of human resources in the corporate world emerged subsequent to the realization that there is need regulate the existing and future organizational needs of the work force in reference to competencies, skills and abilities. Both internal and external factors are considered in the course of developing effective human resources. Internal factors that are often times considered fall in the scope of the organization whereas external factors are basically those factors that are beyond the control of the alleged organization. Unlike the traditional perception of human resource development, the modern concept accentuates that the workforce of any organization consists of human beings who cannot be regarded as resources or commodities. The modern concept of developing human resources recognizes that the work force consists of social beings that are autonomous, productive and creative (Backer & Gerhart 1996). Training and development as a human resource practice Training and development is vital for any kind of organization regardless of its size or the kind of service that the organization offers. This is mainly because the work force is the key resource of any organization since it determines the productivity and effectiveness of an organization. A number of organizations have solidly invested in developing human resources in their companies. As a result, these organizations have witnessed tremendous growth and success. A good example of such organizations includes media firms, banking firms and other high-tech firms (Montana & Charnov 2000). Over the time, researchers and educationist in the field of management have come up with advanced methods and concepts of developing and enhancing human resources. Among these methods include, carrying out occupational training and development. Occupational training and development as a HRM practice involves conducting a series of trainings regularly. In the course of these trainings the work force is imparted with more knowledge and skills linked to their varied vocations. Skill advancement programs can be carried within the organization. Furthermore, the organization can encourage their work force to attend external conferences or workshops that are tailored to address the specific needs of the organizations (Thomas & Heraty et al 1995). In HRM training and development is mainly geared towards motivating employees and enhancing their performance. Activities revolving around training and development include education, training and development. In HRM practice education focuses equipping an employee for the job position that they may take up in future. Training focuses on the equipping employees with more skills for the job that they are currently holding. Development focuses on the activities of equipping employees for the job position that they may take up in future. Training and development can be considered as a subsystem in an organization that reduces randomness and ensures that learning and behavioral change occurs in a structured manner. There are two key approaches to training and development, they include the traditional approach and the modern approach. The traditional approach invested less in training since most organizations believed that training and development was a costly affair that yielded minimal results. However, with time many organizations have discovered the significance of corporate training and development. Currently, training and development is viewed as a HRM strategy employed to enhance organizational performance and competitiveness. The key objective of training and development is to yield a skilled workforce that can tackle various challenges and compete in the market. Training occurs at levels such as individual level, organizational level, and departmental level and at the societal level. Training and development at the individual level enables employees to realize their personal goals this in turn improves the contribution of employees to the organization. At the organizational level, training and development enables the organization to realize its primary objectives by developing individual effectiveness. Training and development at the departmental level enhances departmental contribution to the overall organizational goals and needs. At the societal level training and development enables a company to be socially and ethically responsible with regards to societal challenges and needs (Montana & Charnov 2000). The modern day workplace is one that characterized by swift changes in technology, aging workforce, global competition and inadequate skilled workforce. Consequently, continual learning through training is imperative. Formal education has over time proved to have short-coming when it comes to producing skilled man power who can meet the demands of the ever changing market. Moreover, as a result of the change to amore knowledge-based economy there is need for learning organizations. Over time, intellectual capital has become an important aspect for competitive advantage. The establishment of partnerships for knowledge sharing such consultants, academic partners has increased. Competition as a result of globalization is an evident business challenge that requires a global mindset. These business trends and challenges create a need for strategic implementation to training and development. It is therefore important for HR functions in organizations to align human resources with the business strategy and enhance workforce skills through strategic training and development so as to realize organizational success (Godard 2004). Effectiveness of training and development Several studies have established the important role that training and development plays in enhancing organizational performance and competitiveness. Most studies suggest that training and development is a vital HRM practice that promotes organizational success. Empirical studies conducted by Becker and Gerhart (1996) established that most firms that take up training and development as a HRM practice realize significant competitive advantage. For instance accounting profits are common in banks that consistently expose their workforce to refresher training. A survey conducted by Guthrie (2001) in New Zealand Corporations established that training and development is one of HRM practice linked to profitability and turn over of corporations. In addition, Chang and Chen (2002) using data from over 197 high tech firms in Taiwan carried out inclusive study to assess the relationship between firm performance and training. This study established that training and development had significant influence on employee productivity. Godard (2004) ranks training and development as one of the practices that are associated with high performance paradigm. Godard also notes that other studies have established positive psychological and social implications of training and development as a HRM practice. These studies also established that training and development as a HRM practice can be linked to high levels of stress and work intensity. Most noteworthy in regards to these claims is Barker’s (1993) evaluation of independent teams in manufacturing plant in US. Barker concludes that most employees felt pressured by solid performance norms, a state referred to as “concertive control.”Oguntimehin (2001) notes that training and development increases productivity, eliminates obsolesce of skills, improves quality of work, enhances understanding and promotes positive attitude towards work. Furthermore, training and development brings incumbents to a higher level of works. It helps in the speedy implementation of regulations and policies. The components of nations and organizations encompasses around trainings and development. Nevertheless, employee training and development meets the expansion of organizations due to technological innovations and environmental changes. Training and development responses are employed as responses to organizational change and expansion. In organizations such as educational institutions training and development goes a long in ensuring that employee productivity and effectiveness is realized (Oguntimehin 2001). Conclusion Training and development as a HRM practice is mainly geared towards motivating employees and enhancing their performance. Training and development is vital for any kind of organization regardless of its size or the kind of service that the organization offers. This is mainly due to the fact that the work force is the key resource of any organization since it determines the productivity and effectiveness of an organization. Over the years, researchers and educationist in the field of management have come up with advanced methods of training and developing human resources. Among these methods include, carrying out occupational training and development and skill advancement programs. Godard (2004) ranks training and development as one of the practices that are associated with high performance paradigm. A number of empirical research studies have established that training and development plays a crucial role in enhancing organizational performance and competitiveness (Godard 2004). Bibliography Backer, B. & Gerhart, B.1996, The impact of human resource management on organizational performance: Progress and Prospects. Academy of management Journal, 39,779-801. Barker, J., 1993, Tightening the iron cage: concertive control in self-managing teams, Administrative Science Quarterly, 38: 408–37. Chang, L., & Chen, L. 2002, The effect of human resource on firm performance: empirical evidence from high-tech firms in Taiwan. International Journal of management, 19(4), 622. Delaney, J. & Godard, J., 2001, An IR perspective on the high-performance paradigm, Human Resource Management Review, 11: 395–429. Godard, J., 2001, Beyond the high performance paradigm. An analysis of managerial perceptions of reform program effectiveness. British Journal of Industrial relations, 38: 25-52. Guest, D., 1999, Human resource management: the workers verdict. Human Resource management Journal. 9: 5-25. Godard, J., 2004, Critical assessment of the high-performance paradigm. British Journal of Industrial Relations, pp. 349–378. Guthrie, J., 2001, High –involvement work practices, turnover and productivity: evidence from New Zealand. Academy of management journal, 44, 180-192. Montana, P. & Charnov, B., 2000, Training and Development Management. Barron's Educational Series. pp. 225. Oguntimehin, A.,2001, Teacher effectiveness: some practical strategies for successful implementation of universal Basic education in Nigeria, African Journal of Educational management , Vol, 9, No 1 P. 151-161. Pfeffer, J., 1994, Competitive advantage through people, Harvard Business School Press, UK.  Thomas, N., & Heraty, N. Et al, 1995, Training and Development: Concepts, Attitudes, and Issues, Training and Development in Ireland. Cengage Learning EMEA.   Read More