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Abstract
Training and development are imperative aspects of organizational performance. This is because the environment in which most businesses function presently is constantly changing and is full of challenges. Most organizations have proved that training and development are crucial for an organization to meet the increasing customer demand, and face the competition and openings that are beyond their reach. Hence training of employees at a personal level depending on their position and skills is seen as a means for gauging the general performance of an organization. Because most companies are currently engaging in foreign trade, a specialized training approach for employees is vital to advance staff abilities, particularly in the field of information technology and marketing. Training and development provides tremendous organizational changes in relation to steady and uncertainty of environmental changes. Studies argue that growth and training programs improve the efficiency and performance of any organization currently in the existance. Organizations gain competitive benefit from development and training. This is achieved through eliminating performance deficiencies, staff retention; reduced accidents, damage and scraps; and meeting future staff needs. There is increased flexibility, stability, and potential for development in an organization.
The focus of this review is to explore the impact of training and development on organizational performance. It explores the importance of training and development and shows how this contributes to organizational performance. This review is based on secondary data which encompass an inclusive literature review. It discusses how learning and development relates to organizational performance, and further explores how employee performances arbitrate a positive relationship between learning and development activities and organizational performance. Through training, employees realize better income and improved working conditions, high self-esteem and increased job fulfilment. In addition, training helps in building employees confidence by appreciating the abilities they have. Thus this paper intends to confirm that there is a positive relationship between organizational performance and training. It moreover discusses the effectiveness of how learning and development work as a change agent in managing change within the organization, and the impact that training and development would have on the bottom line. It finally explores the significance of training and development in the process of selection within the organization. The research methodology employed in this paper is primarily qualitative. An analysis of findings is drawn from the discussion and conclusion arrived, which is that training and development has a significant impact on the overall performance of an organization.
Introduction
Randhawa, ( 2007.p114) define training as a process of learning that entails the acquirement of expertise, improvement of skills, ideas, rules, or modification of behaviours and attitudes to improve employee performance. Training is an event that results in professional performance. Moreover, training refers to a temporary process of sharpening the skills and knowledge of staff to enable them to carry out the responsibilities assigned to them. Once a worker is selected, positioned and introduced in a business association, he should be offered with training services to enable him to carry out his responsibilities with competence. Development refers to a permanent learning process employing a planned and logical procedure through which administrative staffs learn theoretical and conceptual knowledge for the universal purpose. It also refers to learning openings tailored to assist the workforce to grow. It offers common knowledge and approach which are important to high-rank employees and is not specifically skill-oriented. Efforts towards growth mostly rely on individual ambition and drive.
The main objective of the training is to assist the organization to realize its goals by adding value to its employees. Training is concerned with investing in human resources to facilitate them improve their performance and empower them to maximally utilize their talents. The specific aims of training include: to expand the abilities of the workforce and enhance their performance; assist individuals to develop within the company so that the prospect human resource wants can be met inside the organization; and to reduce the duration of time needed for staff commencing on fresh jobs on promotion, appointment, or transfers, and guarantee that they are totally proficient as fast and cost-effectively as feasible. Every training and growth program should include inputs which facilitate participants to acquire skills, learn abstract concepts and assist in acquiring vision to focus on the future.
Schneier (1994. p26) confirms that training plays an important role in the attainment of an organizations objective by bringing the interests of the organization and that of employee together. Currently, training is the most crucial factor in the world of business due to the fact that training raises the effectiveness and the efficiency of both workers and the organization. The performance of employees relies on several factors. However, the most crucial factor is training. This is because training is significant in improving the skills of the workforce. The employees who posses more work experience have improved performance due to increased skills and abilities gained from the work experience. Additionally, training affects investment returns. The performance of a business relies on staff performance due to the fact that the human capital of a business plays a crucial role in the expansion and performance of a company. Therefore, to enhance the performance of the staff and the organization, training is provided to the organizational workforce. Thus the objective of this paper is to confirm that there is a positive relationship between training and staff performance.
Training and growth increases the performance of employees. Studies confirm that staff performance is the crucial factor and the foundation that raises the general performance of an organization. Staff performance relies on several factors which include management, job fulfilment and knowledge. However, there is a connection between performance and training. This confirms that staff performance is crucial for the performance of the business, and training and growth is beneficial for the workers to enhance its performance. Therefore the aim of this paper is to portray the effect of training and growth on staff performance (Rothwell, Gerity & Gaertner, 2004.p45).
Studies confirm that training helps in developing managerial ability. Thus organizations should not focus on controlling the increasing expenditures on training because, by training and growth, the organization achieves more effectiveness and efficiency. This substantiates that training enhances the effectiveness and efficiency of employees and the organization as a whole. Currently, organizations realize that training is crucial for staff development, and the staff growth promotes self-fulfilling abilities and talents of the staff, reduces operational expenses, and confines organizational accountabilities and varying objectives and goals.
Employee training enhances customer care and outcomes and increases professionalism within the staff. Additionally, training improves effectiveness, thus resulting in efficiency in resource utilization within the organization. Starting training programs within the organization improves employee relations, and this, in turn, enhances team-co-operation and organization and performance. Training moreover minimizes the rate of staff turnover and enhances employee retention. Additionally, training is linked with advancements in planning and job procedures, leading to increased effectiveness and quality maintenance within the organization. Through training, employees realize better income and improved working conditions, high self-esteem and increased job fulfilment. In addition, training helps in building employees confidence by appreciating the abilities they have. Thus this paper is intended to confirm that there is a positive relationship between organizational performance and training (Lusthaus, 1999.p68).
When an organization is newly started, personnel and employee training are highly crucial because they form the organizational foundation. Additionally, existing organizations that initiate a fresh product constantly requires environmental training because clients may be aware of the organization but may be unfamiliar with the new product. Thus companies have realized that training and development are essential for business performance and that training is a continuous process. Training on personality development is additionally crucial for individual development to portray the organizational competence of their firm to the community. This also helps employees to carry out their internal and civil roles with integrity in order to preserve their honourable positions.
Statement of the problem and research justification
Different training entails practical, theory and situational approach for staff to get acquainted with their places of work. If every employee sustains and develops his skills gained through training, then efficiency in organizational performance is certain. This promotes changes and development, expectedly market approval and profit maximization would be the positive impact of that particular training (Bohlander, 2010.p365). Training on team building raises the organizational solidarity that can improve employee relations and reduce conflict among the staff in the workplace. This creates a good environment for workers and ultimately leads to improved organizational performance.
Normally the basic revolution of an employee for training and growth calls for adoptive conduct and changes of an individuals organization to improve efficiency. Workers can increase their self-respect and value at the time of such training. Employees must develop and learn new abilities and use the newly acquired knowledge in improving their job performance. The general effect of employee training is organizational growth. Inclusion of training influences the organizational prestige and pride that guarantees prolonged existence of the organization in the industry. Additionally, training can drive the company to achieve more than it anticipates.
Aim
The aim of this study is to investigate the impact learning and development programs for employees have on organizational performance and how such processes can be utilized in order to create a better and more effective workforce.
Research objectives
There are several objectives to this study:
The first objective is to investigate whether learning and development be positively related to organizational performance. This is done in order to determine the viability of current practices and how they impact the operations of a company. The second objective entails an investigation as to whether employee performance actually has an impact on the operational capacity and capability of an organization through a positive relationship between learning and development activities. This is done in order to determine just how valuable learning and developmental activities are in creating an effective workforce and how this results in a more efficient and effective company. The third objective questions the viability of learning and development activities as effective change agents in managing changes within an organization.
From this objective, the consequences of change and how it is managed within an organization will be examined to see whether it can create positive organizational effects and limit the inherent problems that crop up when various changes are implemented within an organization. The fourth objective of this study questions the impact of training and development on a companys bottom line. This objective examines the cost-effectiveness of training and development and whether it is viable and above all, cost-effective addition to a companys operational structure. The last objective of this study questions whether training and development can be a so-called cure for weak selection processes within organizations. This objective attempts to discover whether employees can be trained and developed in such a way that they are able to overcome their initial limitations and become valuable resources for the company.
Research Design
According to Sekaran (2006, p. 1), a survey/questionnaire technique is used when the researcher is principally interested in descriptive, explanatory or exploratory appraisal, as is the case in this study (Sekaran 2006, p.1). The justification for choosing a questionnaire approach for this particular study is grounded on the fact that participants will have the ability to respond to the data collection tool by way of self-report. Thus, this project will utilize a self-administered questionnaire schedule for the purposes of data collection. An analysis of related literature will also be used to compare the study findings in order to develop a succinct method of analysis regarding current practices utilized by Ernst & Young and Siemens involving learning and development programs for their employees.
Significance of the Study
The significance of this study lies in its potential to show the importance of training and development programs in improving the operational performance within organizations and how such processes are indispensable due to the proven correlation between talented employees and the positive development of a company. It is important to note that as multinational corporations continue to expand into new markets, it has become increasingly apparent that effectively integrating managerial practices found in one business culture to another often creates a mixed result which at times reduces the operational effectiveness of a pioneering branch within a new location. Since globalization and multiculturalism have become synonymous aspects of the global market place companies, need to respond to the diverse consumer and cultural demographics to which they sell their products and services to stay relevant. Not only that, companies need to be able to address the very real concern of a potential brain drain as a direct result of local recruitment practices that would in effect steal valuable and talented employees way from the company.
Literature Review
Relationship between learning, development and organizational performance
Learning can be defined as the act of obtaining skills, knowledge, opinions and altitude while development entails implementing what is already acquired (Huber 1991, p.88). Learning as a multidimensional construct is a process of transforming skills and knowledge into the desired change in an organization. Empirical studies have revealed that learning and development are key concepts that affect organizational performance positively (Huber 1991, p.88). Learning and development in a business promote innovation, and thus they are positively related to organizational performance. Imperatively, myriad organizations look forward to devising new strategies that will enable them to achieve a competitive advantage. Youndt et al. (1996, p. 836) note that recent changes occurring within business environment compel them to promote learning and development in order to have a competitive edge since most of the traditional and conventional strategies often become obsolete (Vandenberg, Richardson & Eastman 1999, pp.313). Moreover, employing these concepts helps them to overcome impending threats while new skills improve future performance in an organization.
Numerous scholars attest that learning is part of development in an organization. In fact, Akgun et al. (2007, p. 501) propose that through learning, innovative capabilities in a firm are enhanced, a factor that elevates competitiveness and performance. Research conducted by Bates and Khasawneh (2005, p 99) has shown that the only way to implement new ideas, services, processes and products is by incorporating the concepts in a firm. In line with this, evidence has shown that learning and development affect performance in an organization both directly and indirectly. From a conceptual framework, the use of integrative models of learning in organizations has proved to stimulate growth and development of new ideas that in turn affects the performance (Bracker & Cohen 1992, p. 2). For instance, generative learning enhances change of culture, belief, values, policies, goals and strategies by use of feedbacks. In this case, it fosters analysis of past actions in order to propagate transformational change. Moreover, this type of learning challenges the current status of an organization with the aim of improving performance (Huber 1991, p.88).
In line with this, Vandenberg, Richardson and Eastman (1999, pp.313) write that adaptive learning is also a crucial model of learning since it stimulates establishment of development strategies geared to help the firm to cope with the immediate circumstance. Notably, there are abrupt changes occurring in firms and can affect the performance, especially if they emerged unexpectedly. These changes include recession, inflation and other obvious threats (Akgun et al. 2007, p. 502). Adaptive learning and development help to maintain the focal features and maintain the organizational status quo. Moreover, this makes it easy for an organization to restrict itself to identifying and detecting errors that can affect its overall performance. In most instances, organizations are prompted to develop rudimentary associations within its context to ensure short-term effects on the outcomes (Bates & Khasawneh 2005, p 101). Both generative and adaptive learning models complement each other to enable an organization to identify new markets, products, services and customers. Studies have shown that most businesses adopt these models of learning to ensure flexibility and adaptability, factors that enhance performance (Huber 1991, p.88).
Bates and Khasawneh (2005, p 102) point out that innovation in an organization is essential in enhancing good performance and that it comes about due to promoting learning and development. From a scholarly perspective, Ferris et al. (1999, p. 385) acknowledge that innovation comes about due to environmental changes. These changes trigger the development of new ideas through learning. Therefore, it is definite that learning and development are the key recipients geared toward enhancing creativity, pro-activeness and risk-taking. When we talk of innovation, we consider developmental changes experienced in management, marketing and entrepreneurship strategies. Having this in mind, Vandenberg, Richardson and Eastman (1999, pp.319) record that learning boosts applications, creativity and profitability that are crucial in determining organizational performance.
From the identified benefits, it is certain that learning and development in an organization is no longer a choice but a basic need. In fact, Youndt et al. (1996, p. 837) lament that it is impossible for any organization to ignore learning and development processes since they are regarded as key in enhancing capability and effectiveness in any organizational operation. Moreover, long term survival of an organization, its competitiveness and the potential to achieve high performance is highly dependent on learning and development programs. Notably, realizing the significance of these concepts has attributed to a great deal of determining the future performance of an organization. Ferris et al. (1999, p. 386) prove that there is a prominence relationship between these concepts and organizational performance in the sense that organizations that incorporate them inconsistently demonstrate negative trends in their outputs. That notwithstanding, researchers admit that unless these constructs are applied in line with organizational objectives, there might not be any relationship and hence integrated interaction is vital to ensure that desired outcome is realized (Bates & Khasawneh 2005, p 99).
Recent studies have expounded that performance management in an organization does not come an easy way, and this calls for one to incorporate these activities (Vandenberg, Richardson & Eastman 1999, pp.323). Essentially, learning and development helps to optimize coordination and management of human resources, making it easy to heighten competitive pressures (Huber 1991, p.88). From a general consensus conducted in myriad firms, evidence has illustrated that these two constructs are the major prerequisites for a triumphant performance. Findings derived from a study conducted by Bracker and Cohen (1992, p. 4) revealed that learning and development increases job satisfaction, a factor that attributes toward maximum production.
Learning and development activities in relation to organizational performance
Apparently, employees performance can be used to adjudicate a positive relationship between learning, development and organizational performance. Akgun et al. (2007, p. 506) advocate that employees performance is influence by numerous factors. For instance, harmony is crucial in learning activities in an organization. This enhances the collective approach and coordination of vital task. For this to happen, employees should have competent skills, values and knowledge that will enable them to adhere to strategic rules, policies and goals in an organization (Huber 1991, p.89). It has been observed that numerous organizations where there is cooperation among workers often experience productivity and high performance. Needless to say, job satisfaction boosts the morale of workers, and the impacts are determined by analyzing their performance. Ferris et al. (1999, p. 387) present a study illustrating that work output in the organization that has useful tools such as learning and development experience high performance. Youndt et al. (1996, p. 838) concur with this idea where he acknowledges that organizations that have recorded low employees performance are considered to lack development and learning program.
Huber (1991, p.90) elucidates that employees performance can be promoted by encouraging learning and development. This boosts the quality of services delivered, a factor that advances the organizational reputation. Lunenburg (2010, p.1) notes that whenever employees enrol in learning and development programs, they become flexible, responsible and are able to adapt to diverse changes in the organization (Bueno & Ordoñez 2004, p. 531). These programs also complement their indigenous skills and knowledge hence boosts their workforce. Therefore, it is anticipated that the increased performance of workers in an organization is a clear indicator that learning and development have positive effects on overall performance. Ferris et al. (1999, p. 391) comment that numerous organizations aimed at improving the overall performance by making use of these processes.
According to Lunenburg (2010, p.3), learning and development processes should be given considerable attention since they largely demonstrate or determine the relationship between employees and organizational performance. This is due to the fact that there are cultural assumptions that interfere with employees performance (Bates & Khasawneh 2005, p 109). Since human management is a crucial activity; this should be deliberated through learning. Though a hard approach of determining the relationship between performance, learning and development one should note that human resource output incorporates acquired skills to bring about a positive attribute in an organization (Vandenberg, Richardson & Eastman (1999, pp.361). Studies have shown that a positive relationship between the two variables is influenced by the organization commitment toward implementing learning and development. To emphasize this, Bates and Khasawneh (2005, p 109) assert that these variables; learning, development and performance in an organization are closely linked. In this case, either of the variables can be used to determine the relationship between the other two components. Employees performance is directly proportional to the outputs derived from learning and development (Raduan, Naresh &Ong 2009, p.2).
Impacts of training and learning on the bottom line
Studies have shown that there are numerous ways in which training and learning in an organization impacts the bottom line. Zwick (2006, p.26) notes that training and learning in an organization helps to cascade the entire strategies used to learn an organization. In this case, without training and learning, it becomes very difficult to implement and develop new strategies in an organization. Consequently, Youndt et al. (1996, p. 841) elucidate that the performance and end results in an organization are subject to skills and knowledge gained through training. Arguably, it is definite that the two processes help to identify critical issues that are vital in organizations. Whenever employees learn new strategies, they are able to exercise explicit alignment to achieve objectives and relevant goals in an organization (Bassi & McMurrer 1998, p.40). As a result, stakeholders in any business become strategy-driven, a factor that increases the benefits derived in the overall activities.
In line with this, training in the current century has been regarded as a crucial tool for enhancing business activities. To some extent, the kind of training given to employees in a business helps to predict the outcomes. Once trained, Zwick (2006, p.27) highlights that employees are expected to depict progress in helping the organization make attractive returns in its investments. Moreover, learning helps the, to achieve both long-term and short term objectives with ease. Nevertheless, studies have shown that most organizations decline to offer learning and training services to employees since they take much time before positive results can be realized (Vandenberg, Richardson & Eastman, 1999, pp.386). In this case, these activities are often ignored, and time that could have been spared is used as upfront to increase organizational performance. A critical evaluation has revealed that organizations that offer training and learning services to employees have high success rate than those who ignore it. Therefore, one can deduce that these practices have a positive cost-benefit ratio irrespective of the expenses incurred (Bassi & McMurrer 1998, p.41).
Research has revealed that learning is an investment that is directly supported through training. Akgun et al. (2007, p. 511) present an assumption that through learning and training processes, myriad individuals get to understand and analyze various structures within the organization. Furthermore, they get to comply with the authority, values, culture, and customs, decision-making and staffing. There are other added values that are experienced by workers once they undergo training. For instance, Zwick (2006, p.28) notes that employees benefit from career development, succession planning, performance management, budgeting and informed thinking. According to Bracker and Cohen (1992, p. 13), these activities aids individuals to reinforce desired output and set boundaries without the need of being supervised.
From a scholarly approach, Vandenberg, Richardson and Eastman (1999, pp.389) analyze that some of the leading organizations are at the forefront in investigating and utilizing diverse modalities to train and enhance the learning of their employees. These organizations ensure that employees get the appropriate knowledge and skills at the right time, manner, place and cost (Bates & Khasawneh 2005, p 102). Some of the notable modalities include classrooms and training stations. During the learning and training sessions, workers get an opportunity to practice role-play, blended learning and technology applications. Recently, the advancement of technology has enhanced distance learning where employees train and learn at through e-learning modalities (Jemenez-Jemenez & Sanz-valle 2010, p. 411). Having driven the skills and knowledge through diverse channels helps the organization to match workers skills with anticipated benefits.
Training and learning in contemporary organizations help to capitalize on employees ability and prospective through shared accountability. Zwick (2006, p.28) argues that competent organizations are those that aim at tapping into the potential and ability of employees. This is done through self-directed learning and training programs. In the long run, employs get an opportunity to identify their personal needs hence create their own learning plans. Moreover, having identified their strength and weaknesses, they are able to seek available opportunities to presuppose relevant knowledge and skills that will help them cope with the external and internal environment in the workplace (Huber 1991, p.97).
From a careful review of literature, every organization should experience the Transferability of acquaintance and skills back to the organization (Bassi & McMurrer 1998, p.41). This is one of the key factors that determine whether training programs are relevant in a business. Timing of training activities and impacting of relevant content to workers boost their appropriateness and quality of their skill. This also helps them to maintain and acquire new skills and knowledge (Tharenou, Alan & Moore 2007, 257). This is a sure guarantee of the organizations future success. From a theoretical perspective, it is worthy to note that learning and training should be exercise regularly and designed to perform specific functions aligned to the needs of an organization. Zwick (2006, p.29)concurs with this idea as he argues that the continuous learning process acts as a drive to positive change in behaviour, habits and culture in an organization.
Learning and development as a change agent in managing change within the organization
Leaning and development acts as a change agent in an organization in numerous ways. What you have to understand is that organizational development and management are considered to be necessary and viable methods of enhancing a workforce. Therefore, the change agent is vital in enhancing readiness to meet future changes. Akgun et al. (2007, p. 507) note that systematic development and learning strategies aims to bring about the desired change in organizational culture. Moreover, the change is experienced in workers altitudes, beliefs, opinions, values and organizational structure (Bracker & Cohen 1992, p. 12). Chaos and challenges due to disruptive technology, competition and shrinking market are inevitable in business. This calls for a solid framework to impact strategies determined to drive the organization toward acquiring desired results (Huber 1991, p.92).
There are perennial events that occur in an organization and influence its performance either positively or negatively. Youndt et al. (1996, p. 839) point out those successful organizations employ concerted collaboration within and outside the firm in order to discover the appropriate change strategies. An effective change agent helps to stabilize the structure while maintaining or improving organizational performance. The only appropriate built-in mechanism to employ in such a case is none other learning and development processes (Huber 1991, p.93). These components help to boost the immunity of a firm as it struggles to renew its inclusive principles. The identified change agent acts as a catalyst that enables the application of techniques and theories from numerous disciplines. This aids in appropriate and collective decision-making while coaching workers to synchronize their mind in the desired perspective (Akgun et al. (2007, p. 510).
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