Training and development refers to the process to obtain or transfer knowledge, skills and abilities (KSA) needed to carry out a specific activity or task. It includes not just factual and explicit KSAs but also incorporates KSAs that are often difficult to articulate. Training and development will assist employees in the use of new technologies, and communicate and function better in improvised work systems. In order to meet the current and future challenges, training and development assumes a wide range of learning actions, such as training of the employees and knowledge sharing, which would then expand individual and organizational effectiveness. Thus, this would then allow the organization to fully utilize employee’s tacit and explicit knowledge and expands individual, group and organizational effectiveness.
Why is Training and Development Important?
Organizations are experiencing great, rapid changes due to new technologies, corporate restructuring, continuous rising competition and globalization. These factors have increased the importance of learning and capitalizing on human capital in order to have a sustained competitive advantage over the competitors. Tracey (2003) defined human capital as ‘the people that staff and operate an organization as contrasted with the financial and material resources of an organization.’ Tracey (2003) also states that human resources refer to the organizational function that ‘deals with the people who manage, produce, market and sell the products and services of an organization.’
A comprehensive training and development program helps in the consideration of the knowledge, skills and attitudes that are needed to achieve organizational goals and to create a competitive advantage. (Peteraf 1993) Training and development process has assumed a strategic role in organizations. (Stavrou et al. 2004; Apospori et al. 2008). Apospori et al. (2008) had deduced that there is a considerable impact of training on employees’ performance. With the right training and development strategy, organizations can benefit though enhanced innovation, efficiency, productivity and improvement in the quality of products and services they will be able to provide to their customers. This will yield higher financial gains and it will definitively enhance the organization’s reputation and allow the organization to compete competitively in its industry.
Organizations that are consistently and extensively creating new knowledge implements it quickly within its organization through the adoption of new technologies. These activities determine a learning organization, which realize that creation of new knowledge through training and development is becoming the key to success (Vemic, 2007).
Training and Development Initiatives: How and why the relationships are expected? Given that human capital play an enormous role in an organization’s competitiveness, training and development initiatives are designed in a way that will help the organization successfully implement its strategy and reach organizational goals. Training is regarded as critical to employee skill acquisition and has been shown to improve productivity at organizational and individual levels (Bartel, 1994). Training and development does increase employment duration and continuity (Gritz, 1993) and managerial advancement. Organization managements have also realized that training and development is an imperative procedure that can contribute to employees’ increased work morale as well as increased motivation and job satisfaction. With an increased motivation and job satisfaction, this would ultimately improve employees’ performance in the organization. Studies have also shown positive relationships between training and development strategies and employees’ performance and work morale (Vemic,...