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THE IMPACT OF EMPLOYEE TRAINING AND DEVELOPMENT ON EMPLOYEE PRODUCTIVITY

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Abstract

Training has become the buzz word in the dynamic competitive market environment.Human capital differentiates a great organization from a good one. Organizations investing in effective training and development for human resource tend to achieve both short and long term benefits. This study presents a literature review on the significant of training and development on employee productivity. Employees tends to become absolute, and therefore making the need to adapt to the continuous learning and updating of the skill and knowledge invaluable, due to the organizational, technological and social dynamics. Thus, in order for organizations to achieve optimum returns from their investment, there is imperative need to effectively manage training and development programs. However, the most vital asset of every organization under stiff and dynamic competition is its human capital. Training and development is an instrument that aid human capital in exploring their dexterity. Therefore training and development is vital to the productivity of organization's workforce.
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THE IMPACT OF EMPLOYEE TRAINING AND DEVELOPMENT ON EMPLOYEE
PRODUCTIVITY
Maimuna Muhammad Nda & Dr. Rashad Yazdani Fard
Centre of Postgraduate Studies
Limkokwing University of Creative Technology. Cyberjaya, Malaysia.
Abstract
Training has become the buzz word in the dynamic competitive market environment.Human capital differentiates a
great organization from a good one. Organizations investing in effective training and development for human resource
tend to achieve both short and long term benefits. This study presents a literature review on the significant of training and
development on employee productivity. Employees tends to become absolute, and therefore making the need to adapt to
the continuous learning and updating of the skill and knowledge invaluable, due to the organizational, technological and
social dynamics. Thus, in order for organizations to achieve optimum returns from their investment, there is imperative
need to effectively manage training and development programmes. However, the most vital asset of every organization
under stiff and dynamic competition is its human capital. Training and development is an instrument that aid human
capital in exploring their dexterity. Therefore training and development is vital to the productivity of organization’s
workforce.
Key words: Employee Training, Employee Development, employee Productivity.
I.Introduction
As organizations try to survive in the turbulent dynamic market, strong emphasis must be laid on human capital in
order to be competitive and financially solvent. However, there are other factors that affect organizations’ success;
organizations must possess productive (i.e. effective and efficient) employees. In addition, organizations differentiating
on the basis of human capital due to its intangible characteristics such knowledge, skills and motivation of workforce
increasingly sees it as invaluable in order to remain sustainable in the market. Thus organizations should have employees
that have capability of adjusting to swift dynamic business environment. Paradise, (2007) in his report stated that U.S.
organizations alone spend more than $126 billion annually on employee training and development. In an environment
where there is high uncertainty tends to present organizations with high risk, the knowledge of business and market
intelligence present organizations with a reliable competitive advantage over those that do not have such (Jelena, 2007).
Therefore knowledge is turning to basic capital that triggers development. The success of organizations is however
dependent on its knowledgeable, skilled as well as experienced workforce. Therefore in order to maintain sustainability,
organizations must see continuous employee training and development as invaluable. Training and development is very
essential at all employee levels, due to the reason that skills erode and become obsolete over a period of time and has to
be replenished (Nishtha and Amit (2010).
II.Employee Training
Training is the organized way in which organizations provide development and enhance quality of new and existing
employees. Training is viewed as a systematic approach of learning and development that improve individual, group and
organization (Goldstein& Ford, 2002) in Khawaja & Nadeem (2013). Thus it is the series of activities embarked upon by
organization that leads to knowledge or skills acquisition for growing purposes. Thereby, contributing to the well being
and performance of human capital, organization, as well as the society at large. According to Manju & Suresh (2011),
training serves as an acts of intervention to improve organization’s goods and services quality in stiff the competition by
improvements in technical skills of employees.
III.Employee Development
Development refers to activities leading to the acquisition of new knowledge or skills for purposes of growing.
Organizations provide employees with development programmes in order to enhance their capabilities. Employee
development is gaining an increasingly critical and strategic imperative in organizations in the current business
environment (Sheri-lynne 2007) in Abdul Hameed (2011). Thus organizations need to invest in continuous employee
development in order to maintain employees as well as the organization success (Khawaja & Nadeem 2013).
IV.Employee Productivity
Productivity as defined in Oxford dictionary (2007) is the efficiency with which things are being produced.
Employee productivity however is the measure of output per unit of input economically. It is the log of net sales over
total employees (Rohan & Madhumita 2012). Thus employee productivity of an economy as whole or industry could be
determined.
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V. Employee Training And Employee Productivity
Training has been invaluable in increasing productivity of organizations. It does not only enhance employees
resourcefully, but also provides them with an opportunity to virtually learn their jobs and perform more competently.
Hence, increasing not only employees productivity but also organizations’ productivity. Various researches indicate the
positive impact of training on employees’ productivity. Training as a process is one of the most pervasive methods to
enhance the productivity of individuals and communicating organizational goals to personnel (Ekaterini & Constantinos-
Vasilios, 2009). Rohan & Madhumita (2012) also supported that investing in training employees on decision making,
teamwork, problem-solving and interpersonal relations has beneficial impact on the organizations’ level of growth, as
well as impacting on employees’ performance. Training affects employees’ behavior and their working skills which
results into employees enhanced performance as well as constructive changes (Satterfield & Hughes, 2007). Training is
most effective way of motivating and retaining high quality in human resources within an organization (Kate Hutchings,
Cherrie J.Zhu, Brain K, Cooper, Yiming Zhang & Sijun Shao, 2009). Also added by Lowry, Simon & Kimberley (2002),
training is a way of enhancing employee commitment and maximizing employee potential. According to Konings &
Vanormelingen (2009),Colombo & Stanca (2008) and Sepulveda (2005) training is an instrument that fundamentally
affects the successful accomplishment of organizations’ goals and objectives. However, the optimum goal of every
organization is to generate high revenue and maximize profit and a vital tool to realize this is an efficient and effective
workforce. Thus, a workforce is only efficient and effective if the appropriate training and development is provided for
such and therefore leading to productivity.
Fig1:Relationship cycle Source: Rohan & Madhumita (2012)
VI. Employee Development and Employee Productivity
Development programs worth investing so much into, as most successful organizations consider the progress of
workforce and therefore invest in their training. This results to increase in skill and competence that improve morale and
productivity (Sheeba, 2011). Development seems to reduce the turnover rate of employees (Deckop et al. 2006). Thus
advancement opportunities do not only reduce absenteeism, but it increases employee’s commitment and satisfaction that
helps reduce turnover (Atif et al. 2010).
VII.Discussion
Training and development must be designed and delivered to meet the needs of all employees in such a way that the
employees will not be only productive but also be satisfied. Training and development has a positive impact on the
employees to carry out their work more effectively, increasing their interpersonal and technical abilities, team work, job
confidence and work motivation (Kate Hutchings, Cherrie J. Zhu, Brian K. Cooper, Yiming Zhang and Sijun Shao 2009).
Training in organizations holds the key to unlock the potential growth and development opportunities to achieve
a competitive edge (Rama V. & Nagurvali Shaik, 2012). Organizations train and develop their workforce to the fullest in
order to enhance their productivity. Thus, knowledge, skill and abilities are determinants of employees’ performance
which organizations need to continuously invest in wisely in order to improve their employees’ productivity. As
supported by (Noe, 2006), organizations spend an enormous amount of money and time on training in order to aid
employee's learning of job-related competencies. Thus it is important to fully provide the results from training efforts
(Dowling & Welch, 2005).
VIII. Conclusion
Training and development ultimately upgrade not only the productivity of employees but also of the organization. It
has rightly been said, employee development is the key to organizational sustainable development. Organizations must
have employees who are able to quickly adapt to an ever-changing world market. Companies need to invest in on-going
employee training and development in order to both keep employees and be successful. The 21st century will be
favorable to those organizations, which are able to learn faster and adapt to changes than their competitors. Training
enhances employees’ initiative and quality of work, thereby assisting them to be more committed to achieving the
organizational goals and objectives and in turn enhancing employees’ effectiveness within the organization.
G.J.C.M.P.,Vol.2(6):91-93 (November-December, 2013) ISSN: 2319 7285
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Summarily, training and development impacting on employee productivity has not only improve the wellbeing of
organizations, but also aid the prosperity of most countries that has put into consideration the design and delivery of
training and development of workforce at national level. As the national policies aim to improve nation’s human capital,
this optimally in turn results to the economic growth of the nation. However, it is recommended for management of
organizations to give training and development of employees a priority in order to get the best out workforce as well as
improving the organization’s productivity. Further research studies is also recommended on the training and development
of employees in order to have a broader understanding of its valuable impacts.
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We use a panel of two digit manufacturing industries to examine the role of formal training programs in productivity growth and wage growth. We find evidence for positive and decreasing effects of on-the-job training (OJT) in human capital accumulation, and therefore productivity. We find however weak evidence that OJT affects wage growth, suggesting that the firm appropriates most of the benefits from OJT programs. Off-the-job training on the other hand has no effects on industrial productivity or wages. Copyright 2010 Oxford University Press 2009 All rights reserved, Oxford University Press.
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An important human resource development (HRD) implication of the People's Republic of China's (PRC) rapidly expanding economy has been the emergence of a critical shortage of grey-collar workers (GCW). Although 'grey-collar' has been commonly used in the West to describe an aging population within the workforce, in China it refers to people who are neither white nor blue collar workers but technicians. The shortage of GCW constrains the PRC's economic and developmental sustainability, and has been recognized in central and provincial government initiatives to increase training and development of employees within these fields. While acknowledged as a policy and organizational problem, there has been no research investigating what organizations are doing to develop these employees. Drawing upon a survey of 310 semi-skilled and skilled employees in Beijing, our findings suggest that while the surveyed organizations are investing heavily in both on- and off-the-job training, employees' perceived value of such differs markedly according to age and position. The research has important implications for China's HRD strategy in suggesting links between training and other human resource management (HRM) functions are yet to be evidenced. Yes Yes