Course: Bachelor of Business
Module: Management Practice 1
Submitted by: Denise Kindregan
Student Number: 15200715
Lecturer: Dr. Orna O’Brien
Submission Date: 11/12/17
‘One of the most frequently encountered human capital development
interventions is training’ (Truitt, 2011).
This literature review is focused on the importance of training within
an organisation and what is considered high quality training.
The author will discuss each aspect of the question:
Why is training so important to maximise profits for an organisation,
and can the wrong type of training, can cost you the talent of the best
employees and have profits decline if you don’t have the best in the positions available
rather than someone who may be entitled to it because of the service they have
put in within that organisation over several years?
The review will be divided into sections to emphasise the difference in
success and failure within an organisations.
We will discuss up to seven different articles that all have the common
argument of the importance of training but also the impact and development, the
effect on attitude, the investment it requires, the downside of it and how a
training model can be used in any organisation in any sector once the person
providing the training knows how to implement it for employee retention. Today, training has become the most important
factor in the business world – it increases efficiency and effectiveness of the
organisation and employees. The purpose
of this is to show the impact of training and with the ultimate design of
training for employee performance. Training
design plays a vital role in the employee as well as organisational
performance, bad training design results in loss of time and money.
The review will analyse how training and development, is a way to
address the weaknesses of employees and turn them into strengths. Each employee should be put into a training
programme from the first day to initiate the thought process in how the organisation
is managed. The information provided
will prove that most organisations in the world use training programmes and
benefit with strong teams and financial increases each year.
Impact and Development
The impact of training and development performance, is the key to
success within an organisation. Most
organisations today, have a training programme in place to ensure that they
have their teams to the highest of standards but at times, the training can
depend on the competence of the employee, the support that is in place and the
understanding of how the organisation operates.
Most would argue that the best training provided is by learning on the
job, trial, and error, but there are also those who believe that the best way
for someone to learn is to make mistakes which is learning by error because it
develops their ability to understand that they can make a mistake because they
need to learn and it enhances the capabilities of the employees. The more they experience on the job, they
have a better performance due to an increase in skills and competence. People learn from practical experience, it
reduces costs and saves time, and has a positive effect.
Organisational performance depends on the employees, because human
capital is vital in playing an important role in the growth of organisational
performance. Employee performance
depends on numerous details which in effect can refer to Maslow’s hierarchy of
needs. The design of training should be
according to the needs of the employees.
Training is relevant to fostering a relationship between learning
satisfaction and the effectiveness of applied learning. Maslow prosed this as a motivational theory
which we see in organisational change, whether the organisation means to use
this or not. The theory states that
people are motivated to achieve certain needs, and that some needs take
precedence over others but our most basic need is survival which can be
surviving in every aspect of life.
Employee performance depends on factors like job satisfaction, knowledge,
performance, and there is a relationship with these factors and training.
Training and development is beneficial to any employee, regardless of
what you job is, the length of time they’ve been employed because performance
can always be improved, to train to the best of the abilities to benefit the
organisation, they must be willing to invest, investment in human capital is
key to development and maximisation. The
most efficient the organisation gets, the most efficient the employees should get,
and this is where the development comes into practice so the organisation
should invest a huge amount on human resource capital because their performance
will ultimately increase the performance of the organisation. It may seem to cost to invest in employees,
but overall it gives back more than it took.
Delivering the right training style is an important part of the idea,
for development because if someone is not delivering the training in a somewhat
impressive style, they won’t capture the attention of the trainee, meaning that
time is being wasted, it is vital for a trainer to engage the trainee in this
process to implement the ideas they need to because trained employees perform
extremely well compared to untrained employees.
For example, in retail, if one store of an organisation has the well-trained
team, they in return, can maximise the profits because they are competent and understand
the process of development, compared to untrained employees who end up
disregarding their jobs because they don’t care, because they weren’t shown
that they are valuable because the person didn’t take the time out of their day
to train them. Every organisation should
develop its employees according to the need of that time, so that they can
compete with their competitors.
Training and development is directly related to employee but it’s
ultimate effect goes to the organisation, because the end user is the
organisation itself but the advantages of training are much more than its
disadvantages, but they can also fail to demonstrate an understanding of how to
identify organisational conflict.
The effect on attitude
Training is defined as “the planned intervention that is designed to
enhance the determinants of individual job performance” (Chiaburu & Teklab,
There is a significant relationship between the training experience and
attitudes, and attitudes about perceived job proficiency, positive training
experiences and attitudes and one’s proficiency. A failure to provide training and education
by an organisation, could possibly result in conflict between both parties. Such conflict could lead to any number of
complications, including formal complaints which could lead to law suits
because of situations such as chaos, dissatisfaction, grievance, and turmoil
which in result can cost the organisation time and money, so employees benefit
from ongoing employer provided training.
To enhance performance, training skills and behaviours must be
transferred to the workplace to be maintained over time.
Both informal and formal training opportunities are provided for the
development of training, improvements in employee communication and proficiency
of performance as well as extending retention time. With enhanced training, there are increases
in profits, positive working relationships, good communication skills which
gather more information concerning procedures and technologies related to job
performance thus assuming greater accountability. Employees need to strengthen or expand
knowledge base skills, and abilities of their employees for this, education and
training must be incorporated into a formal system if the goals of employees
and the corporation are the be attained.
In organisations today, management need to invest in strengthening or
expanding the knowledge base, skills, and abilities of their employees. Implementing education and training on a
level that is more than acceptable to the organisation to maximise the goals
set. Positive training has been shown to
assist in the reduction of anxiety or frustration, which most employees have
experienced more than once during their employment in any field their job is
in. employees who have experienced this
line of training, provides a sense of loyalty, job satisfaction and positive
effect on their job performance whereas poor performance reviews can be due to
inadequate job training which in return can lead to employee dissatisfaction
and conflict. Studies have reported
ongoing training offerings within an organisation are seen by employees as
their company valuing them by continuing this investment and some suggest that
the quality employees experience when training, has a lot to do with the employee’s
feelings of importance concerning of the job. Training is important in forming positive
attitudes and atmospheres in the workplace, because it may further lead to job
proficiency, while not receiving positive training can be linked to poor
attitudes thus leading to poor performance, which then can lead to potential
consequences such as:
§ Poor performance
§ Lack of trust
§ Loss in resources
The result in an increase in self-worth when an employee feels like the
organisation is investing in their abilities to enhance greater job proficiency
which supports the theory that training can benefit employee attitudes and
training to strengthen skills for technology is vital today. Understanding computers today is highly
important, everything is updated or changed, so it is continuous training but
unfortunately organisations facing possible fiscal threats or challenges may
target employees training as the first thing to cut to benefit budgets.
Some organisations tend to focus on the here and now, rather than long
term. They are trying to do more with
less, such as budget cuts and reducing spending and costs, instead of taking
the time to consider where the problems really are and where the attention
needs to be focused to improve things.
Management needs to believe that they must show interest in their
employees to produce the best and most efficient person for the job. When this is done, it helps build loyalty which
in return increases productivity. Loyal
employees become more engaged and more productive. These employees become the talented people
that want to learn, they are ambitious and need mentoring, they want to gain
skills which makes them become valuable.
For example, in retail, the management would consider the cost of their
turnover. If there are fewer competent
employees, productivity can slip, sales decline, more hours must be put in and
morale suffers but then it can be considered too expensive to fix this
situation. This in return ends up being
the price you pay for not training staff efficiently.
So, from experience, we would look at how to help things run more efficiently
to maximise productivity. We develop
staff, so they become competent in handling customers so we keep them
interested by constantly training.
Developing a team is more important for retail because It promotes job
satisfaction, they feel like they contribute when they receive that reassurance
from their manager, they become committed to their task because they feel like
they are growing. This kind of training
is essential for sharing knowledge among staff, knowledge should be spread
around because there is no need for only one person to know how to one specific
task. This makes absolute business
sense, if it’s started from the first moment, your employees grow and you will
see a return on investment long term.
Organisations depend on trained employees, so that the organisation can
remain competitive in their respective market, they must try and remain profitable. Within a good training programme, the
employees would have been seen to acquire such skills and abilities to prepare
their job for the future, whether their short term or long term assets of the
company. Some organisations have a
training model as part of the process. A
training model is an approach used to develop skills of experienced employees,
leaders in improving and problem solving.
With appropriate training, there is a reduction in human errors, poor
training and work standards, lack of control.
When there is sufficient training, there is a balance within the
organisation because there is a similar flow in all areas, job is carried out
accordingly, teams become efficient and work well together so there is a solid
balance among co-workers.
Currently, technology is advancing so vastly that employees are
constantly updating their skills, trying to keep up and at times it can seem
overwhelming but human resources is still the most important asset available to
an organisation today. Employees are
there to supply a service, and interact with customers and suppliers in such a
way that they develop relationships for support and loyalty for the
organisation. Employees who have doubts
about their abilities, or their team or support system, end up failing to
understand procedures, they may act inappropriately which could end up
tarnishing their reputation and costing the organisation a loss in sales and
productivity. Although training is a
sense of self improving, there should always be a connection between the needs
of the organisation and the training programme because they must always find a
way to remain current and relevant.
Training also prepare the organisation for the future because there is
always one person who may have a better of idea of the way things should be
done. Every organisation always has an amount
of employee turnover, so there must be a development plan in the training
programme that when this happens, there is someone prepared to take over the
leadership roles such as supervisor, management, or executive positons. When this is in place, promoting employees
within the organisation reduces recruiting, hiring, so training costs provide
opportunities for advancement which ends up motivating employees. A well-designed training programme should
meet the needs of the company, it should asses the training needs, prepare
employees and plans on how to perform the training in the best way. The needs should be defined on what the organisation
itself needs, the availability of resources and how will management support the
ideas put forward. To analyse the
employees, you must identify people, departments or teams that have performance
problems. When this is complete, the
information will help determine what topics the training should cover. In most cases, there will be a plan given to
the trainer or a guide set in place by the executives of the organisation on
how the training should be carried out on an employee, what result they expect
and a training report is usually filed which evaluates the performance.
The planning stage of the training programme, is there to set
objectives, prepares the trainers to deliver the training in a timely and
professional manner using the methods they see fit. Managers can decide on where their employees
need to focus on in the training, some may need computer skills training
whereas the trainers tend to want to provide a dynamic experience that will
keep employees motivated and engaged.
Providing the effective training makes sure that the training relates to
an employee’s current tasks and experience, allows them to practice and
demonstrate new skills while defining measures of success so that both trainer
and trainees can evaluate their progress in real time day to day measure, so
that everyone can give feedback.
There are organisations with the available resources to organise their
own training programmes. There are more
in house training programmes in retail than most other sectors. They work off a minimal budget, tools and
people needed which makes it affordable.
Most small organisations might not have the ability to hire the
intellectual people required, so they create the training programmes to develop
their own. Depending on the organisation
and employees, firms can access training services available from other
associations, such as online courses or FETAC courses, some employees offer to
send their managers on a retail training program to develop their skills
further by earning a certificate of further it more on a degree level. When this is implemented, organisations fell
that they are preparing their teams to be able to adapt to the change in market
conditions and labour requirements because regardless of where you set up,
start up, or invest in products, if you don’t invest in the people that supply
the service it will fail either way.
In current times, studies have showed that business leaders were making
employee retention their number one priority which can translate into pay
increases, incentives, offering better job benefits and their experience in the
organisation. Employee retention has
been proven to be successful through giving the employees a sense of purpose
because it demonstrates on how valuable the employees are to the organisation
so it keeps them motivated and engaged which leads to a stronger connection. In
return employees are inspired to work harder to make everything a success. There have been several steps that have
proved successful in keeping employees happy in their positions within an organisation.
Hiring a new employee should be done on a skill basis, by taking the
time to find the right fit rather than hiring to fill a space because it must
be done sooner rather than later. In
some organisations, people are put in positions because the position needs to
be filled rather than seeing if the person is right for the job. When someone is hired based on necessity,
things rarely work out because of the level of incompetence, the team ends up
suffering not management. There must be a
clear understanding of what the organisation expects, this is where there needs
to be a detailed contract with clear guidelines for each party involved. When a job is advertised, showing there is
detailed contracts, people will be hired on skill, it can attract a higher
talent of applicants because they know there must be a comprehensive training
“Training can help companies stay competitive and profitable by ensuring
the availability of needed skills and behaviours” (Patten, 2016).
Training v non-training
Untrained employees can be linked to unhappy employees, because they may
feel inadequate, like they haven’t achieved anything which they could end up
blaming their management team for. In
return, management, could end up facing unsatisfied, underperforming, uncaring
employees which will in fact cost the organisation much more time and money
than the training would cost. When
employees feel undervalued, the quality of their work is lower, which shows in
their performance because that will prove lower than it should be.
This type of employee ends up frustrating everyone they engage with at
work, they prove inefficient and others want to have them there is wasting
time. More time on these employees costs
more money, more effort is spent when employees aren’t trained which in return
ends up being a problem for someone else because they need to fulfil their
responsiblities, takes longer to do the work, money is lost due to
mistakes. Material could end up being
wasted because the work may end up being done again from scratch, or worse a
product not up to standard was delivered on behalf of the organisation which
increases consumer complaints or a loss in customer numbers which ends up being
the worst possible scenario.
Although training programmes do have costs, the cost of training
compared to the cost of non-training will seem minimal overall. Having an extremely trained work force means
they are continuing to learn new skills which improves production, reduce
costs, reduce mistakes, builds confident workers, and creates a more appealing,
friendly work environment.
Investment in skills is an investment in the company.
Each organisation should have a training programme in place to develop
the needs of the organisations even if it needs to meet the wants of the
employees. Each year the market changes
in some way, currently the market is increasing because there is an increase in
spending and if you don’t have the most competent employees, how can they meet
the needs of consumers and represent the organisations in the way it deserves.
With incompetence, comes complaints which is turn can lead to reprimand
or even dismissal. When an organisation
takes in a new employee, they often ‘throw them in the deep end’ without
thinking of the mistakes they could make and bad habits they will learn.
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