Impact of training and training on organization perfomance free essay sample

The study seeks to assess the impact of Training and Development in an organisation as viewed by both employees and employer (organisation) and other stakeholders. It will also highlight the benefits associated with Training and Development and the subsequent challenges and emerging issues. The development of people’s performance in the workplace is critical to the success of any organisation. The Training Development (TD) process has the potential to make a strong positive impact on the performance of individuals, teams and the business as a whole. In order to convincingly advocate the benefits of training to the management staff of an organisation, it is essential that they understand the positive role that it can play in improving organisational performance. Ensuring good performance of individuals and teams is central to the work of the Training Development function. In order to do this a planned approach is necessary. We will write a custom essay sample on Impact of training and training on organization perfomance or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The activities of the Training Development function must be closely linked to the overall business plan. The impact TD activity is meant to have on performance must be clearly defined and well communicated (review sentence). To be successful TD activities must be supported by wider TD Policies and Procedures. This research proposal will highlight on the background of the problem, the problem statement, the research questions, hypothesis and the scope of the study. Problem Statement The problem statement can be started with two assertions: (a) properly designed training works, and (b) the way training is designed, delivered, and implemented can greatly influence its effectiveness. That well-designed training is impactful is important as continuous learning and skill development are now a way of life in modern organizations. To remain competitive, organizations and countries must ensure that their workforce continually learns and develops. Training and development activities allow organizations to adapt, compete, excel, innovate, produce, be safe, improve service, and reach goals. In the United States alone, organizations spend about $135 billion in training individuals per year (Patel, 2010). Organizations invest in training because they believe a skilled workforce represents a competitive advantage. Therefore, decisions about what to train, how to train, and how to implement and evaluate training should be informed by the best information science has to offer. Training research and practice have greatly advanced over the last three decades. In the first chapter on training published in the Annual Review of Psychology, Campbell (1971) characterized the training literature as â€Å"voluminous, nonempirical, nontheoretical, poorly written, and dull† (p. 565). Campbell further noted that it was â€Å"faddish to an extreme,† often testing new methods emerging in practice but unrelated to theories of learning. Kraiger, Ford, and Salas (1993) also commented on how training research and theory lagged far behind developments in learning theory in other areas of psychology. Thirty years later, Salas and Cannon-Bowers (2001) reviewed the training literature and concluded that training theory and research had made great advancements. The science of training has drawn both on practical applications of general learning theory and on theories and models endemic to industrial–organizational psychology that place training in a broader organizational system. It is also the case that advancements in training research can be attributed in part to the need for evidence-based prescriptions for the design and delivery of training. The science has kept up with this demand. Metaanalyses integrating a large number of empirical studies across various training topics from manager training to team training, cross-cultural training, and all forms of employee training consistently show that when training is designed systematically and based on the science of learning and training, it yields positive results (Arthur, Bennett, Edens, Bell, 2003; Taylor, Russ-Eft, Chan, 2005). The indictment by Campbell (1971) on the state of training literature gave rise to theory-based research and empirically based training practices. Since Campbell’s review, training research has grown, generated empirically driven principles, and made significant contributions to practice; therefore, the training research domain is now robust, exciting, dynamic, active, and relevant to organizations. The purpose of this research is to provide a comprehensive practical review of the impact of training and development in organizations What really is the problem? The problem is not clear. Significance of the Study Boudreau and Ramstad (2005) argued that to maintain a competitive advantage, organizations must succeed in three domains: finance, products or markets, and human capital (or their workforce). Worldwide economic cycles tend to create conditions in which obtaining sufficient financing is either equally easy or equally difficult for most organizations of the same size. More important, in today’s global economy, all organizations can sell to the same markets (for example through the Internet), and product development cycles are such that differences in product innovation are much smaller than in years past (as evident in similarities in smartphones across carriers). Thus, it is the third domain—building and maintaining a more capable and better trained workforce—that may offer the most sustainable advantage available to most organizations (Huselid Becker, 2011). Effective management of the acquisition and training of human capital is thus an important key to organizational success. For example, Delaney and Huselid (1996) found that effective practices by organizations related to staffing and training were positively related to perceived organizational performance, whereas in a study of nearly 1,000 companies, Huselid (1995) documented that the use of high-performance work practices (including effective recruitment and selection, compensation systems, and training) predicted employee retention and performance as well as long-term measures of corporate financial performance. Aguinis and Kraiger (2009) cited multiple studies in European countries that link training practices and policies to measures of organizational effectiveness. Studies like these show that training is a key component in building and maintaining an effective employee workforce, which in turn drives various metrics of corporate well-being. In addition, training is also a key component in leadership development (Collins Holton, 2004), another factor integral to corporate success. Finally, at the societal level, investments in workforce development through training are often seen as a primary mechanism for national economic development. Indeed, Aguinis and Kraiger (2009) presented several case studies of the role of training in promoting economic development within nations. We live in unprecedented economic times. Companies and government entities today face pressing challenges and opportunities, many of which have important implications for training and development. For example, a few common trends include dealing with an aging and, in many cases, cross-cultural workforce; the retraining of displaced personnel; a new generation entering the workforce with different motivations, expectations, and approaches to learning; access to rapidly emerging technologies that can accelerate or distract from employee development; and the need to develop an adaptive, flexible workforce that can adjust to changes, while simultaneously ensuring that employees have the specific skills they need to do today’s work. To a large extent, problems of unemployment and stagnant economic growth can be viewed as challenges in aligning public and private training efforts with skills needed in future jobs. This paragraph sounds like the problem statement. A properly prepared labor pool attracts and retains employers, helps reduce unemployment, and allows for fulfillment of societal needs. It enables an area to be competitive with other locations (other organisations, states, regions, or countries). However, organisations resources are limited, so smart decisions must be made about where and how funds are allocated (and which policies should be supported) to help in workforce development. Knowledge about what helps and hinders training effectiveness is essential. At the organizational level, companies need employees who are both ready to perform today’s jobs and able to learn and adjust to changing demands. For employees, that involves developing both job-specific and more generalizable skills; for companies, it means taking actions to ensure that employees are motivated to learn. Organizations strive for efficiency and seek competitive advantages. Understanding how best to use training helps a company establish a skilled and competitive talent pool, providing an alternative strategy to finding sources of lower priced but less skilled labor. Too much staff on significance of the study. Simply tell us who is going to benefit from your study and how? Research Objectives 1. To determine what IRC receive from training and development investment. 2. To investigate features of training and Development which help organisations to reap benefits 3. To determine factors that may impact on the effectiveness of training 4. To investigate training facets which are within the training transfer environment. In lieu with answering the above research questions, the study will address the following specific objectives: 1. To identify perceptions of the employees about the over training and development within the company; 2. To identify perceptions of the employees on how training and development proved to be beneficial to them; 3. To identify employees’ competency levels as enhanced by the training and development implemented; 4. To examine how training and development contribute to the individual performance and productivity; 5. To establish the role of human resource management department of its training and development function; and 6. To establish guidelines and solutions to improve training and development. Significance of the Study study on the relationship between training and development and performance and productivity in Entrepot Marketing Private Limited, this study intends to give answer to the following questions: 1. How do Entrepot employees perceive the overall training and development program of the company? Are the activities within the program adequate? If not, in what specific areas do the program is lacking? 2. How do Entrepot employees perceive the overall adequacy of training and development activities of the company? How do this impact the role of the human resource management department? How do Entrepot employees Research Questions align research questions to objectives 1. What are training and development benefits to : IRC Individuals and teams? 2. What features of training and development help IRC reap its benefits (what matters)? 3. What is the relationship between Training and Transfer of training? 4. What are the factors that determine effectiveness of training? 5. What are attitudinal factors that both organisations and employees attach to training and development? Literature Review of a Limited Scope Kraiger (2002:6) Defines training is a systematic development of knowledge, skills and attitudes required by employees to perform adequately on a given task or job. It means learning skills and knowledge for doing a particular job and increasing skills required for a job. Key words: Knowledge Webster Dictionary (2012) defines knowledge as the fact or condition of being aware of something or the range of ones information or understanding. It can also be defined as the sum of what is known: the body of truth, information, and principles acquired by humankind Skills This refers to the ability, coming from ones knowledge, practice, aptitude, etc. , to do something well. E. g Carpentry, dance, art. Dictionary. com Attitude Saks and Haccoun (2004) say that in an organization for any role at all, the important qualities which make good performers special are likely to be attitudinal. Skills and knowledge, and the processes available to people, are no great advantage. What makes people effective and valuable to any organization is their attitude. Attitude stems from a person’s mind-set, belief system, emotional maturity, self-confidence, and experience. These attitudes are the greatest training and development challenges faced by many organisations today. Development Arthur et al. (2003) explains that as soon as the basic work-related training is covered it is essential to focus on development for people as individuals – which extends the range of development of knowledge, skill and attitude. By this way development refers to learning opportunities designed to help employees grow in all respect. It is most concerned with shaping the attitudes. Barber (2004) found out that development is not restricted to training – it is anything that helps a person to grow, in ability, confidence, tolerance, commitment, initiative, inter-personal skills, understanding, self-control, motivation and more. Organisations are therefore changing to facilitate and encourage whole-person development and fulfillment – beyond traditional training. Benefits Related to Job Performance Training-related changes should result in improved job performance and other positive changes (e. g.\  , acquisition of new skills; Hill Lent 2006, Satterfield Hughes 2007) that serve as antecedents of job performance (Kraiger 2002). Reassuringly, Arthur et al. (2003) conducted a meta-analysis of 1152 effect sizes from 165 sources and ascertained that in comparison with no-training or pretraining states, training had an overall positive effect on job-related behaviors or performance (mean effect size or d = 0. 62). However, although differences in terms of effect sizes were not large, the effectiveness of training varied depending on the training delivery method and the skill or task being trained. For example, the most effective training programs were those including both cognitive and interpersonal skills, followed by those including psychomotor skills or tasks. Training effects on performance may be subtle (though measurable). In a qualitative study involving mechanics in Northern India, Barber (2004) found that on-the-job training led to greater innovation and tacit skills. Tacit skills are behaviors acquired through informal learning that are useful for effective performance. Regarding innovation, trained mechanics learned to build two Jeep bodies using only a homemade hammer, chisel, and oxyacetylene welder. Regarding tacit skills, Barber noted that the job of a mechanic requires â€Å"feel† to be successful. Specifically, trained mechanics developed an intuitive feel when removing dents—a complex process particularly when the fender is badly crumpled. As a result of informal training, one of the mechanics had a â€Å"good feeling of how to hit the metal at the exact spot so the work progresses in a systematic fashion† (Barber 2004:134) Benefits Of Training For Organizations Swanson cited by Arguins and Kruger (2009: 8) postulates that Fewer than 5% of all training programs are assessed in terms of their financial benefits to the organization. The picture changes among companies recognized for their commitment to training. Specifically, the majority of organizations recognized by ASTD for innovative training programs measure training impact at some level of organizational effectiveness (Paradise 2007, Rivera Paradise 2006). Typical organizational performance measures in this latter sample include productivity improvement, sales or revenue, and overall profitability. Overall, research regarding organizational-level benefits is not nearly as abundant as the literature on individual- and team-level benefits. Not only have there been relatively few empirical studies showing organizational-level impact, but those studies that have been done typically use selfreport data and unclear causal link back to training activities (Tharenou et al. 2007). Benefits Related to Organizational Performance Several studies conducted in European countries have documented the impact of training on organizational performance. Arag ? on-S? anchez et al. (2003) investigated the relationship between training and organizational performance by distributing a survey to 457 small and medium-size businesses in the United Kingdom, the Netherlands, Portugal, Finland, and Spain. Organizational performance was operationalized as (a) effectiveness (i. e. , employee involvement, human resource indicators, and quality), and (b) profitability (i. e. , sales volume, benefits before interest and taxes, and a ratio of benefit before taxes/sales). Results indicated that some types of training activities, including on-the-job training and training inside the organization using in-house trainers, were positively related to most dimensions of effectiveness and profitability. Ubeda Garc a (2005) conducted a study including 78 Spanish firms with more than 100 employees. This study related organizations’ training policies (e. g. , functions assumed by the training unit, goals of the training unit, natureof training, and how training is evaluated) with four types of organizational-level benefits: employee satisfaction, customer satisfaction, owner/shareholder satisfaction, and workforce productivity (i. e. , sales per employee). Results suggested that training programs oriented toward human capital development were directly related to employee, customer, and owner/shareholder satisfaction as well as an objective measure of business performance (i. e. , sales per employee) Research Methodology Research methodology is the logical plan of the processes to be conducted in a research. Lichtman (2006:219) defines methodology as the various techniques, methods and procedures used in conducting research. McNeill (1990:14) concurs when he says that methodology is the theoretic study of the logical basis of research of collecting data, interpreting and analyzing the findings. Therefore research can be understood to mean the layout and detailing of the research processes. Qualitative research is that component of research that has as a starting point being the manner in which the insider regards social proceedings. This serves to create profound elucidation and comprehension of human life, behavior or experiences (Leedy Ormond 2001). Description, understanding and interpretation are key traits of qualitative research. Research Design The research design is the entire strategy one adopts when approaching the central research problem (Leedy Ormond 2001:91; McNeill 1990:14). The design depicts the broad layout of the procedures to be followed by a research including the data collected and the data analyses conducted with a view of generating answers to a research question. This research will employ a descriptive research design. According to Saunders et al (2007:34), a descriptive research design is a form of a formal study. It describes a particular phenomenon and portrays an accurate profile of persons, events or situations. Moreover, it serves a variety of research objectives which include answering the questions who, where, when and how? As such the research will employ qualitative and quantitative data collection methods. There will be use of both questionnaire and interviews to be administrated to the IRC employees and Management. The questionnaires will explore information from the employees while the interviews will explore information from the management. Research Strategy Related to the above, a case study was used for the purposes of this research. Many authors agree that a case study gives a detailed description of the phenomenon at hand in this case the impact of Training and Development at IRC. Case study focus on one aspect (Impact of training and development) with a view of providing an in depth account of events, relationships, experiences or process occurring in that particular incidences. The main reason why the case study was used for the purpose of this research is because it blends well with the needs of a small scale (IRC) and it allows the researcher to use multiple services and multiple methods as part of investigation and therefore validity is high. Case studies are often used to reveal some information about a usually hidden or unknown phenomena or when little information exists about it. Population According to Leedy and Ormrod (2001:188) population is the totality of persons, events, organizational units, records or other units subject to sampling with which a research problem is concerned. In other words population refers to the broad group or entity whose characteristics are under study. The population for this study will constitute primarily the employees and management of IRC in Zimbabwe. The population consists of approximately 35 employees and 5 management staff. Sampling Sampling allows conclusions to be drawn about the entire population without needing to talk with everyone in the population as such since all employees are many and cannot be accessed all with the given research time, a sample was drawn mainly from all programme departments. A combination of stratified sampling and quota sampling were employed. Stratified sampling is used mostly if the population is heterogeneous such that using other sampling methods like simple random may result in a single stratum dominating the sample (ibid: McNeill 1990:38)Stratification was employed by dividing employees into their respective programme departments and the quota sampling was employed through the grouping of respondents by gender so as to ensure that the sample reflects a population of relative proportions of people in different categories for example gender and age groups as already alluded to. Sample Size Determination The industrial standard method was used to determine sample size as it frequently used in non probability sampling especially the quota sampling which was used in this research as highlighted above. According to Dyck and Smither (1994:146) the frequently used sample size is 10% of the selected population. Data Collection Both primary and secondary data would be collected in this study; the data shall be both qualitative and quantitative. Primary data is data collected by the researcher for the research at hand whereas secondary data is data that already exists in various forms and publications not originally collected for the study at hand (Saunders et al, 2004). Qualitative data is non-numeric and expresses the respondents’ perceptions, feelings, observations, experiences and in some cases fears or concerns about the phenomenon. Quantitative data on the other hand is numeric in nature and tends to quantify objects or units under observation in other cases quantitative data can be used to express the number of times an event occurs. In this study for primary data the researcher shall conduct personal interviews and administer questionnaires to the IRC employees. For secondary data, the researcher would consult the IRC online library, bullets and other information/ communication sites. Personal Interviews Personal interviews would be conducted as a way of triangulation; thus addressing the shortcomings of questionnaires. The researcher will select conducive time and place to personally solicit information from the selected segments of the population in their natural environment. A list of open ended questions would be administered in order to probe the participants to bring out their opinions on the information sought and control the flow of the interview respectively. Personal interviews carry the advantages of enabling the interviewer to notice particular reactions and thus eliminate confusion over the questions asked; the interviewer can also pick up non-verbal data like dread or fear and flexibility among others. This method is time consuming and inherent with interviewer bias as facial expressions may influence or affect the response by the participant. Questionnaires Self-administered questionnaires shall be used in this study and these would be targeted at key informants within the IRC employees. Questionnaires reach wider or scattered populations, eliminate interviewer bias, are cost effective as no interviewer is necessary and they maintain anonymity. This method affords the respondent time to answer in the comfort of their homes or offices and more so, they can refer to appropriate literature. Questionnaires however need to be constructed carefully lest many questions remain unanswered and lack of control over the response date results in low response rates. Furthermore, questionnaires require a degree of literacy among the participants. Pre-testing The pre-testing of the research instruments would be conducted before the actual data collection in the study area. The merit of pre-testing is to help to check the relevance of the instruments and expose problems related to their design prior to the actual data collection. Data Analysis The raw data collected would be analysed using Microsoft Excel. Quantitative data would be presented in tabular or graphical forms for ease of analysis. For qualitative data similar themes would be grouped together and the data analysed using qualitative measures. The information acquired would be evaluated against the stated research questions or objectives so that generalisations about the population could be made. Ethical considerations The researcher will adhere to the following ethics while conducting the research: a) Informed consent In carrying out the research, the researcher will put into cognisance the right of the respondents to be treated with dignity and respect they deserve. The researcher will seek permission from the all respondents who provided (will provide)information presented in the research. All respondents were aware of the intended use of the information collected. Use either past or present tense and not both . b) Privacy/confidentiality In order to maintain privacy and confidentiality of the respondents no names or form of identification of the respondents will appeare on the questionnaire.