The Effects of Training and Developing the Workforce on the Organization Performance

Topics: Sales, Organization, Organizational studies Pages: 7 (2097 words) Published: January 12, 2008
The environment in which most organizations operate today is continuously changing, and the rate of change is increasing. Almost most organizations are now involving in tremendous increase in international business and foreign assignments. Training and developing the workforce offer an interesting case of change for any organization in light of uncertain and rapidly changing environment. Many researches argue that training and development programs increase the organizations' performance and effectiveness. Toward a better understanding of the effects of training and development in the workplace, this research points out the importance of training and development the workforce, determines the major types of training and development programs, discusses the relationship between training and the overall organizational performance, and offers some guidelines for HR managers to design effective training and development programs.

Table of Contents
Training and Development Major Areas
Training and the Organization Strategy
Training and Productivity
Training and Work Behavior
Training and Workforce Diversity
Cross-cultural Training
Training and Organizational Change

The Effects of Training and Developing the Workforce
on the Organization Performance
Many researches indicated significant relationship between HR activities and managers perform a significant set of activities that affect and influence employees' behavior. Theses activities include planning, job analysis, selection, recruitment, placement, career management, training and development, designing performance evaluation and compensation systems, and personnel relation.

The skills and performance of employees and managers must be upgraded continually. Meeting this requirement involves training and development process and evaluating performance for the purposes of providing feedback and motivating employees to perform effectively. Large firms spend an average of $63 million each on formal training annually. Add in informal education and development exercises and the total amount firms spend exceeds $200 billion; that's slightly more than spending on public and private elementary and secondary education combined in the U.S. (Bateman & Snell, 2004, p.312).

Training can include every thing from teaching employees basic reading skills to advanced courses in leadership. Organizations, in aggregate, spend billions of dollars on training and development. Companies invest in training to enhance individual performance and organizational productivity. The most training and development popular areas include: (1) basic literacy skills, (2) computer applications, (3) developing management and supervisory skills, (4) technical skills,(5) interpersonal skills, (6) problem-solving skills, and (7) communication skills.

An organization's philosophy and strategy are inextricably linked with its approach to improve the current or future performance of its employees. Some organizations seek to hire skilled employees from outside instead of training its workforce. Many organizations prefer to train and develop their own employees. The process of training and developing employees is both costly and time-consuming. However, to make the training and development process more effective, it must be tied to the overall strategic goals of the organization and to other HR systems. For instance, due to tight labor market conditions and the need to reduce costs as a part of cost-leadership strategy, many organizations may need to train and develop their nonmanagerial workers for managerial jobs. This could be reached by having them work with and learn from current managers. Existing manager should be rewarded for their help to train and develop others, if not, they probably will consume a very little time and effort to the task. Moreover, development effort will be counterproductive unless promotional opportunities are...
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