Employee Training and Development Reasons and Benefits - Research Paper Example

Running Head: essay Evaluating Training, development and learning and their importance at work of the of the of the Professor] [Course] Table of Contents Introduction……………………………………………………………………..…3 Training defined…………………………………………………………..……….3 Need and rationale for training……………………………………………...……4 Technology changes………………………………………………………..4 Quality consciousness……………………………………………….……..4 Need for higher productivity…………………………………………....…..5 Safety and stability………………………………………………….…..…..5 Facilitator in strategic management………….……………………….…..5 Development defined………………………………………………………………6 Nature of development…………………………………………………..…6 Problems solved by training and development……………………………….….7 Importance of training and development……………………………………..….7 Maximum utilization of resources…………………………………...…….7 Development of workforce…………………………………………………8 Skills enhancement………………………………………………….……..8 Increasing productivity and team spirit………………………………...….8 Maintaining organizational climate and culture……………………...…..8 Improving quality of work…………………………………………………9 Promoting business image and profitability………………………….……9 Adherence to labor and company laws…………………………………….9 Real time exposure…………………………………………………..……..9 Case in action (Price Waterhouse Coopers)……………………………………..9 Concept of Learning…………………………………………………………..…..10 Importance of learning……………………………………………………...…….12 To the individual……………………………………………………...……12 To the organization…………………………………………………..…….12 Conclusion……………………………………………………………………...….12 References……………………………………………………………………...….13 Introduction Training and development constitute an important and integral component of an organization’s structure and overall functioning. Not to mention, human resources are the key to success and growth in any business and as such, development of workforce through proper training, imparting new skill sets and knowledge and fostering a learning and conducive environment become imperative (Management Help n.d). The function is receiving increased attention and appreciation nowadays owing to the changing customer perceptions and market forces. This change calls for effective and competent employees who can innovative and sustain those innovations through their abilities and respond to the changing environment in a favorable manner. As such, training and development form the cornerstone of success for both the employee’s and the organization’s career. Training defined Training in simple words is a tool which aims at enhancing the current knowledge, skill set, abilities and competencies of people to achieve some specific outcomes. Built around specific result expectation, it takes the form of an organized activity with structured and successive stages in between which tend to impart technical, managerial, and inter-personal and such other know-how to the employees. Overall, such skills enable a candidate to better his /her performance through careful decision making and analysis capabilities. In the words of Flippo, “training is the act of increasing the knowledge and skills of an employee for doing a particular job”. Planned and strategic training programme at work results in the creation of intellectual capital which often supplies competitive advantage to organizations (Noe 2010). Need and rationale for training With human resources shifting its focus from traditional to strategic viewpoint, need and rationale for training at work puts on greater numbers. Globalization, competition, productivity, quality, cost effectiveness and a lot more have made the training platform more complicated and urgent too (Blanchard & Thacker 2004:117). The foremost concern is to strike a balance between proactive and reactive training measures to be adopted in response to market forces. Factors creating urgency in the rationale of training are: Technology changes Technology can spell success or failure for a organization and this depends upon how competent and skilled the workforce is in handling the technology and also getting adapted to the fast paced changes taking place. Globalization rests on the continuous development in technology and it automatically calls for a proportionate increase in the technical know how of the process and machine owners (Pynes 2008:283). In order to optimize the investment, employees have to be taught new techniques and procedures to handle the technology, thereby increasing efficiency and minimizing cost. Quality consciousness Customer perception and expectation has changed courts from cost to quality. Employees in an organization work at different levels with different levels of interactions with consumers. Quality is regarded as a value addition service which starts from production and continues even after the sales. In this regard, the work of machines ends much before but the activities of humans continue. Thus, it is important to observe how quality can get distorted if people at work are not properly trained for their job duties (Accel Team n.d). Training in this sense enables an employee to judge the situation and take corrective actions when and where needed. It boosts up the confidence and also makes them more committed and serious towards their responsibilities. Such behavior results in building better image of the company in the eyes of the customer and enhancing the overall value in the product or service (Cook 2008:184). Need for higher productivity As opined by Holzer (2004), firms are now entrusted with duties of special attention towards cost effectiveness, streamlining their value chain and supply quality propositions. This uphill task can be achieved only when the workforce is able to comprehend market demands and act accordingly. Not only technical expertise but also adequate knowledge in all the spheres of business is facilitated by training to become all rounder and handle any condition (Burke 2008:102). Through an increased set of capabilities, maximum utilization of resources take place which not only increases the ultimate output but also makes workforce highly valuable and competitive. Safety and stability Some implicit factors like employee turnover, absenteeism and accidents at work compel the introduction of training in an organization. Training boosts up the morale and confidence of employees and enforces job security which automatically reduces labor turnover. From safety points of view also, training is required to enable the employees and specially workers to have complete knowledge of the machines and safety devices. This results in lesser chances of accidents. Facilitator in strategic management In the strategy domain, training serves as a planning and control tool whereby promotion and retention plans are developed. Training helps determine the candidates eligible to be promoted by imparting certain skills. Thus, it can help save on costs incurred in hiring, recruitment and also minimized waste reduction by minimizing accidents and maximizing quality and productivity. Development defined Significance of development extends a bit further as it seeks to enhance or alter the behavior and performance of employees for some specific job outcome. It involves not only technical and managerial know how, but also an attempt to infuse decision making skills, attitude change, job and organizational knowledge and inter-personal skills. Observing the scope of development, it is pretty much obvious that development is used to prepare employees for higher job duties and increasing the capacity and potential of the individual for better performance. Nature of development Development process is not an end rather a continuous process of learning for the individuals. Development helps individuals in self learning and getting a feel of actual job while participating in development sessions. Development results in behavior change and potential and capacity augmentation of employees. This enhances the present performance and prepares them for future assignments. The table below (Table 1) demonstrates different methods employed for imparting different kinds of skills and fulfilling specific development purposes. Purpose Method/technique Job knowledge On-job experience Coaching Understudy Organizational knowledge Job rotation Multiple management General knowledge Special courses Specific readings Decision making skills Case study Business game Inter-personal skills Sensitivity training Role play Specific individual needs Special projects Committee assignments Table 1: Methods of development Problems solved by training and development Kayode (2001) opines that problems in organizations differ but the common aspect in them is the manpower involved. Thus, improvising the manpower efficiency could ultimately lead to resolving most of the problems. These problems are organization wide and cover a host of domains including (Olaniyan & Ojo 2008): Bettering the work quality and boosting up morale and confidence of employees. Promoting new expertise, skills, knowledge and attitude development Ensuring use of new equipments, tools, machines, methods and processes. Implementing new, modified or changed policies and regulations. Ensuring sustenance and growth of the business. Aligning performance of new entrants to the expected level of performance. Avoiding obsolescence taking place in markets, technologies et cetera. Importance of training and development The advantages of training and development covers a plethora of categories and issues which make this function indispensable one in today’s competitive environment. Those important areas are discussed as below (Training and Development 2007): Maximum utilization of resources Utilization of resources occurs when transformation process of input to output is efficient and effective. For human resources, training is the form of input in which skills, expertise, knowledge and abilities are made to enter the system and output is received in the form of quality and cost effective work. This understanding helps employees differentiate between personal and organizational goals. Development of workforce An organization is entrusted with the task of providing career development opportunities to its workforce which automatically gets returned back to the company in the form of competent and highly skilled employees. To prepare employees for future tasks and higher positions, training and development is the required equipment to allow for personal growth and advancement opportunities to the employees. Skills enhancement Every job entails numerous kinds of skills and competencies. An employee is inducted with a basic knowledge but to help him achieve the job responsibilities and be able to attain personality and intellectual enhancements, organization has to provide for training and development to increase their current skill set. Increasing productivity and team spirit Cross-functional teams are the talk of the town and employees are supposed to have fundamental knowledge of every single department. This feat is achieved through training and development whereby regular sessions keep them abreast of the organizational goals and fosters the required team spirit and collaborative behavior in them. Maintaining organizational climate and culture While organizational climate is made of leaders, peers and subordinates; organizational culture comprises rules, values, beliefs, opinions and practices prevailing in the organization. Training and development helps employees understand the culture of the organization and facilitate the adaptation process for them. Introducing change in the organization becomes easier if there is a learning environment in the organization. Improving quality of work With the help of training and development, employees feel confident, safe and secure of their work. They work in teams and establish healthy relations with their co-workers and peers. Thus, quality and timeliness of work gets improved. Promoting business image and profitability With employees producing quality and punctual results, the image of organization and business is respected and recognized in the community. The profitability also increases as optimum utilization of machines, equipments, labor and other resources take place. Adherence to labor and company laws Training and development helps employees increase their technical know-how and basic understanding of operating on machines and equipments. This in turn reduces possibilities of industrial accidents. This way, training and development implicitly provides for adherence of labor and company laws. Real time exposure Training can be in-house or external. While the former is pinpointed at individual development needs, the latter is concerned of responses to market changes and demands. Thus, training and development serve as a tool for real time exposure for employees with the help of which they can get proactive in their activities, ascertain the upcoming changes and act accordingly. Case in action To illustrate the significance and accrued benefits of training and development within international organizations, example of Price Waterhouse Coopers fits well in this scenario. Price Waterhouse Coopers (PWC) is a Toronto based service firm with operations into risk management, advisory and tax services (Price Waterhouse Coopers n.d).. Its revolutionary practices in the area of training and development are elaborated as below: Introducing financial incentives Traditionally, training and development sessions involve growth in decision making abilities, personality, motivation and others. As an innovation, PwC has introduced the concept of financial incentives in training and development sessions whereby the employees are entitled to get bonuses on completing the courses successfully. Even subsidies are allowed to them to encourage them for participation. Online training sessions Generally it happens that employees are apprehensive of participating in training sessions due to their work load and other obligations. In case of PwC, the employees are given monthly offs to let them write their papers and examinations free of any tussle. Online training sessions facilitates their work-life balance. Cultural compatibility Mingling of cultures is a prerequisite for success in organizations. Understanding this urgency, PwC arranges for cultural training sessions where people from diverse backgrounds and cultures get the liberty to share, exchange and disseminate their ideas. This helps in managing the culturally diverse workforce of PwC across nations and branches. Global perspective “Think global, act local” becoming the buzzword today has made PwC recognize the need of sending its employees to foreign assignments to get a feel of cross-border working and enrich their experience in different cultural setting. Its ‘Global Mobility’ program accounts for this transition (Synergos 2004). Concept of Learning Learning has become the most talked after issue in organizational perspective after the emergence of knowledge management. An organization does not only use knowledge but also produce knowledge in various levels, forms and intensities. In an organization, both individual and organizational learning take place but the latter is not guaranteed by the former. A learning organization is one which learns and also promotes learning in its workplace through new practices, challenges and policies which is often used as competitive weapon against rivals. To achieve sustenance and growth, it is essential that organization not only accounts for learning, but also arrange for the transfer of knowledge so that it is easily accessible to the needy ones (Harrison 2005). Learning organization establishes effective leadership in the organization because then exchange of ideas and supportive relationship exists rather than autocratic and authority based leadership. Knowledge sharing and learning from all employees creates synergistic and symbiotic effects for the organization which cumulates into exponential growth (Vemic 2007). Source: Serrat 2009 Importance of learning Benefits of learning are multifarious and are inclusive of both individual and organizational contexts. Detailing of those advantages which establish the importance of learning are: To the individual Increased flexibility in operations, tasks and activities. Giving vent to creative instincts of employees. Providing more grounds for social appearances and interactions. Infusing greater motivation in employees. Better sharing of ideas and knowledge. Dynamic leadership. To the organization High productivity and profitability Competitiveness through knowledge sharing Value addition to the assortment of products and services. Conclusion Looking carefully at every single aspect of training, development and learning in an organization, it is pretty much obvious that organizations need to implement these practices to remain competitive and thrive in the ever changing technological and competitive market. Culmination of the benefits of these practices also results in developing entrepreneurship in the employees. This in turn supports and energizes both the individual and the organization for long term commitments and benefits. References 1. Accel Team (n.d). Human Resource Management [online] available from< http://accel-team.com/human_resources/hrm_07.html> [Accessed 3 Jan, 2011] 2. Blanchard, N & Thacker, J.W (2004). Effective training: systems, strategies and practices. New Jersey: Pearson Prentice Hall 3. Burke, G (2008). Growing your Business. New York: Routledge 4. Cook, S (2008). Customer care excellence: How to create an effective customer focus. USA: Kogan Page 5. Harrison, R (2005). Learning and Development. London: Chartered Institute of Personnel and Development. 6. Holzer, M (2004). Public Productivity handbook. USA: Marcel Dekker 7. Kayode, T (2001). The Role of Training in Charge Management. Journal of the Institute of Personnel Management of Nigeria, vol.10, no.7, p. 24-31. 8. Management Help (n.d). Employee Training and Development: Reasons and benefits [online] available from< http://managementhelp.org/trng_dev/basics/reasons.htm> [Accessed 3 April, 2010] 9. Noe, R.A (2010). Employee Training and Development, 5th Edition. New York: McGraw Hill. 10. Olaniyan, D.A & Ojo, L.B (2008). Staff Training and Development: A Vital Tool for Organizational Effectiveness. European Journal of Scientific Research, vol.24, no.3, p.326-331. 11. Price Waterhouse Coopers (n.d). It’s a three peat! Price Waterhouse Coopers ranked No. 1 in “Training Top 125” for Third Consecutive year [online] available from< http://www.pwc.com/us/en/press-releases/2010/PricewaterhouseCoopers-Ranked-No-1.jhtml> [Accessed 3 Jan, 2011] 12. Pynes, J (2008). Human resources management for public and non-profit organizations. CA: Wiley 13. Serrat, O (2009). Building a learning organization [online] available from< http://www.adb.org/Documents/Information/Knowledge-Solutions/Building-a-Learning-Organization.pdf> [Accessed 3 Jan, 2011] 14. Synergos (2004). Global Giving Matters [online] available from< http://www.synergos.org/globalgivingmatters/features/0409ulysses.htm> [Accessed 3 Jan, 2011] 15. Training and Development (2007). Importance of Training and Development [online] available from< http://traininganddevelopment.naukrihub.com/importance-of-training.html> [Accessed 3 Jan, 2011] 16. Vemic, J (2007). Employee Training and Development and the learning organization. Economics and Organization, vol.4, no.2, p.209-216. Read More