HOW CAN TRAINING AND DEVELOPMENT HELP IN ACHIEVING COMPETITIVE ADVANTAGE FOR AN ORGANIZATION
SUBMITTED TO: SUBMITTED BY: Prof. Anurag Shankar Shrishti
Economic liberalization and policies of globalization have created a hyper-competitive environment, innovation and fierce competitiveness have raised issues of survival, effectiveness, sustainability, etc. Increasing demand for skilled performers and increasing high attrition of capable workforce forced the companies to shift focus on attracting and retaining high-performing employees in the extremely competitive business environment. Companies have recognized the need to enhance the employee’s opportunity to develop skills and abilities for full performance within the position and for career advancement and growth which would lead to retention of talented workforce in return increase firms performance in terms of profitability and productivity. Companies have realized that in today's competitive business milieu, the quality of people one employs will make all the difference. Lately, human resource management has emerged as an essential factor for sustained competitive advantage. Research highlights that organizations develop sustained competitive advantage through management of scare and valuable resources (Barney,1991). The human resource enables organizations to achieve optimization of resource, effectiveness, and continuous improvement consistently (Wernerfelt, 1984). An organization takes time to nurture and develop human capital in the form of knowledge, skills, abilities, motivation, attitude, and interpersonal relationship, and makes it difficult for competitors to imitate (Becker & Gerhart, 1996).
Competitive advantage is a management concept that has been so popular in the contemporary literature of management nowadays. The reasons behind such popularity include the rapid change that organizations face today, the complexity of the business environment, the impacts of globalization and unstructured markets, the ever changing consumer needs, competition, the revolution of information technology and communications, and the liberation of global trade (AlRousan and Qawasmeh, 2009). Competitive advantage is simply defined as anything that gives an organization an edge over the competitors in its market. To be effective a competitive advantage must be:. Difficult to mimic, Applicable to multiple situations, Unique, Sustainable and Superior to the competition (Porter, 1998). People are the assets on which competitive advantage is built, whether in the public or private sector, whether in the corporate world or in the world of education. Human resources are considered the most important asset of an organization, but very few organizations are able to fully harness its potential. Focus on people has become the new mantra for success. The latest theory in human resource management holds that people are an “inimitable” asset. Workforce and their skills are the one thing that competing organizations cannot imitate.
Effective and efficient workforce has been shown to enhance company‘s performance by contributing to customer satisfaction, innovation, productivity, and development of a favorable reputation of the firm. Therefore a need to retain these talents is the most important thing for an organization today.
Companies derive competitive advantage from training and development. Training and development programmes, as was pointed out earlier, help remove performance deficiencies in employee. This is particularly true when – (1) The deficiency is caused by a lack of ability rather than a lack of motivation to perform, (2) The individual(s) involved have the aptitude and motivation need to learn to do the job better, and (3) Supervisors and peers are supportive of the desired behaviors.
Training makes the employees versatile in...