Impact of on-Job Training on Performance of Telecommunication Industry

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Journal of Social and Development Sciences Vol. 3, No. 2, pp. 47-58, Feb 2012 (ISSN 2221-1152)

Impact of On-Job Training on Performance of Telecommunication Industry *Nadir Khan, **Sayed Fayaz Ahmed, Muhammad Ibrahim, Muhammad Khalil Shahid Institute of Communication Technologies, NWFP University of Engineering & Technology, Peshawar, Pakistan *nadirkhan.hoti@gmail.com **fayaz_sayer@yahoo.com Abstract: This research is about On-Job training and Performance of organization. It discusses the importance of training and its output, which is very necessary for individual performance and over all organizational performance. In this research study, various variables, which are the outcome of Training, have been taken into account. Further, more the relationship of all those variables with the over all organizational performance has been studied. A structural model has been developed according to the results and relationship of these variables. The research will add a significant figure to the performance of organization and will raise the importance and value of training in organizations. The results are applicable to all type of organizations and will help managers to make their firms more productive and stable. Key words: On-Job Training, Promotion Opportunity, Individual Job Performance, Return on Training Investment, Employees Turnover and Productivity and Overall Organizational Performance 1. Introduction Most of the employees come to organizations having an academic degree but no knowledge and skills about the job. They are very new at workplace and having no familiarity with it. Due to this situation, these workers needs further training to face their workplace in a well and easy way and perform better; and for this purpose training is planned to give them a specific knowledge and skills about their jobs (Fitzgerald, 1992). Some time older employees also need training in addition to their previous job skills because the new technology brings new jobs and responsibilities; and they need to get familiar with that. Training is not an easy way as it seems but it requires a huge investment of money in human capital. It has many advantages like creating competitive return for a firm, innovations, chances of learning about new technologies, improving and developing employee skills and hence increases the firm over all performance (Salas & Cannon-Bowers, 2001). Some researchers have been criticized the training process as more expensive as it requires a lot of money and time (Kraiger, McLinden & Casper 2004), and there is a doubt that whether it really a positive relationship between training and firm performance (Alliger, Tannenbaum, Bennett, Traver, & Shortland, 1997; Wright & Geroy, 2001). These days most of the firms in the developing countries are adapting new technologies and new jobs for various purposes like competition etc. They have pointed out that new skills and knowledge is necessary for the maintenance of their firms. Therefore, they are continuously investing money in the human capital and their bosses are trying to understand the basics of this investment and remain competitive in the market. Some organization start to train their employees when they recruit them formally like schooling and simultaneously keep them update either through on-the-job training or out side the job training (Carneiro and Heckman, 2003). We are trying to model not only the relationship of training and organizational performance but also found out the rate of training investment linking with firm performance for the first time in telecom sector in Pakistan. Highly educated employees demand high salaries and other incentives, which may be an extra burden over the economy of the organization. Most of the employees left the organization due to no motivation, promotion or due to incompetence to work, mostly those having weak background. To develop the status of the employees and organization, managers provide training and development to the...
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