IMPACT OF TRAINING ON DEVELOPMENT OF EMPLOYEES A LITERATURE REVIEW

 

The researchers have conducted many empirical studies to identify the relationship between training and development. A research that was conducted to evaluate the impact of training on the performances and investment for training with 123 motor technicians as a longitudinal study over a period of 7 moths has identified that the training has improved the performances of the trainees and such the investment on training was justifiable (Warr, et al., 1999). Further it was identified that training has supported the total quality management as well as the continuous quality improvements and has identified that return on investment can use as a measure of effectiveness of training (Phillips, & Pulliam, 2000). It was identified that many companies are not investing on training due to the fact that the companies do not evaluate how training has affected for the performances of the companies and how training as a tool has help the companies to develop a higher sustainable competitive advantage which companies has no idea on the economic impact of training to the companies whereas a survey that included 457 small and medium organisations (SME’s) indicated a positive relationship between training and the performances which is significant which the performances were evaluate through the effectiveness of the output of the employees and the profitability (Aragon-Sanchez, et al., 2003). A study has identified that training facilitate development of the employees as well as help organisation to sustain their market share in continuously changing environment conditions (Lim & Morris, 2006) whereas it was argued through a research that International human resource systems in multinational companies should focus training programs in developing senior managerial and professional employees about the  preferences in their culture in building relationships and cultivate skills among the said employees to build relationships with different people which will help to enhance the competencies of the organisations (Taylor, 2007).

Through another study it was identified that human resource development as a border complex and ongoing process with many activities in which training is one important activity which create better individual and organisational performances which will further help employees to have better performances in current job or future assigned new roles (McNamara, 2008). An empirical study that was conducted within the duration of 2006 to 2007 in Catalonia region with 381 large scale organisations, it was identified a positive relationship with training and the results of the business whereas it was proposed to consider training as a supplementary tool that strategically can use to increase the outcomes and the performances of the organisation (Marin-Dias, et al., 2011).

More empirical studies were conducted by many researchers in training to identify the other factors that has an influence on training whereas it was identified that age, occupation, education qualifications, and more importantly the size of the organisation determine the probability that an individual has to receives a training by the organisations (Sutherland, 2004) whereas it was identified that the size of the organisation is having a positive relationship with the provided trainings by the organisation due to the economies of scales that are implied with training whereas it has identified that small organisations which has less than 50 employees provide less opportunities for their employees in training than the large organisations (Frazis, et al., 2000). On the other hand, the risk appetite of large organisations is comparatively higher than the small organisations which resulted the change in the attitude of the organisations in investing in training that resulted large scale organisation to invest more in training and provide higher opportunities for the employees to participate in training (Harris, 1999). A study that was conducted covering all the industries and enterprises in Australia, it was identified that the size of the organisation and the industry is having a higher positive relationship with the amount of trainings that provide by each individual organisation to their employees (Smith & Hayton, 1999). It was argued that the training provided by multinational companies to their employees were largely depend on the industry that the company operates, size of the company, the market entry strategy or the method that the company has used to enter in to the host destination, the operation that the business conduct, the time that the investment has made, and the local market conditions (Blomstrom & Kokko, 2003). A study conducted with in the multinational corporations, public and private firms in India it was found that productivity, innovations and increased quality as well as the competition around the world are the main consideration of the multinational corporations to provide trainings for their employees whereas multinational and private firms has lesser concerns for the factors such as top management’s demand to provide trainings while wishes, demands, and needs of the employees were not considered as considerable factors to provide training by the public and private corporation which indicates that multinational companies are focusing more on training than any other firm which hold different ownerships in India (Yadapadithaya, 2001).

 

References

Aragon-Sanchez, A., Barba-Aragon, B. & Sanz-Valle, R., 2003. Effects of training on business results. International Journal of Human Resource Management, 14(6), p. 956–980.

Blomstrom, M. & Kokko, A., 2003. Human capital and inward FDI, s.l.: Stockholm School of Economics.

Frazis, H., Gittleman, M. & Joyce, M., 2000. Correlates of training: an analysis using both employer and employee characteristics. Industrial and Labor Relations Review, 53(3), pp. 443-462.

Harris, R. I. D., 1999. The determinants of work-related training in Britain in 1995 and the implications of employer size. Applied Economics, Volume 31, pp. 451-463.

Lim, D. & Morris, M., 2006. Characteristics, instructional satisfaction, and organizational climate on perceived learning and training transfer. Human Resource Development Quarterly, 17(1), pp. 85-113.

Marin-Dias, M. L., Llinas-Audet , X. & Chiaramonte-Cipolla, L., 2011. Training as a factor of business excellence. Intangible Capital, 7(2), pp. 280-305.

McNamara, C., 2008. Employee Training and Development: Reasons and Benefits, New York: Authenticity Consulting, LLC.

Phillips,, J. & Pulliam, P., 2000. Level 5 evaluation: Measuring ROI, Alexandria, VA: American Society of Training and Development.

Smith, A. & Hayton, G., 1999. What drives enterprise training? Evidence from Australia. The International Journal of Human Resource Management, 10(2), pp. 251-272.

Sutherland, J., 2004. The determinants of training. Economic Issues, 9(1), pp. 23-39.

Taylor, S., 2007. Creating Social Capital in MNCs: the International Human Resource Management Challenge. Human Resource Management Journal, 17(4), pp. 336-364.

Warr, P., Allan, C. & Birdi, K., 1999. Predicting three levels of training outcome. Journal of Occupational and Organizational Psychology, 72(3), pp. 351-375.

Yadapadithaya, P. S., 2001. Evaluating corporate training and development: an Indian experience. International Journal of Training and Development, 5(4), pp. 261-274.