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Company-based determinants of training and the impact of training on company performance: Results from an international HRM survey

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Abstract

Purpose The purpose of this study is to use an international dataset to examine what determines employee training from an organisational perspective, and to what extent training investments enhance company performance. Design/methodology/approach Data from 5,824 private‐sector organisations are used to examine determinants of training and the connection between training and profitability. OLS regressions and Probit estimates are used in the statistical analyses. Findings The results indicate that the provision of company training is largely determined by firm‐specific factors, such as human resource management (HRM) practices. The results further show that two widely used measures of training – incidence and intensity – are largely determined by different factors. Staff turnover (mobility) does not appear to be a decisive factor in explaining the provision of training on a national or company level, although it is associated with lower profitability to some extent. However, the single most important factor associated with profitability is how much is invested in training (intensity), suggesting that the economic benefits of training outweigh the cost of staff turnover. Originality/value This study contributes to the existing training literature by offering extensive access to internal measures of training, profitability, HRM practices, workforce characteristics and staff turnover for companies in 26 countries worldwide.

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... In this regard, the literature points out that the quality of in-company training depends on various societal factors of the participating companies as they determine the investment made by companies in training (Hansson, 2007;Peretz and Rosenblatt, 2011). Firstly, several reports (Gaylor et al., 2015;Carrasco-Mir� o et al., 2021, Goncharova, 2021; among others) mention the initial and continuous training, pedagogical skills and professional experience of the people at the company who train apprentices as key elements of quality. ...
... Our analyses provide evidence that the size of the company significantly impacts the implementation of dual VET in Catalonia. According with literature (Bentolila et al., 2020;Hansson, 2007;Peretz and Rosenblatt, 2011;Wolter et al., 2003;Wolter and Ryan, 2011), this impact refers, particularly, when it comes to criteria related to material and personnel resources, which in turn affect the company's capacity to accommodate apprentices and its overarching purpose in terms of profitability. ...
... However, notable differences arise when it comes to training resources, with micro-SMEs and SMEs surpassing mediumsized and large companies in this aspect. These results were unexpected, considering that medium-sized and large companies generally offer a greater quantity and variety of internal training opportunities compared to micro-SMEs and SMEs (Jansen and Pineda-Herrero, 2019;Hansson, 2007;FUNDAE, 2022;Peretz and Rosenblatt, 2011). One possible explanation is that in medium-sized and large companies, continuous training predominantly targets all employees, with only a small portion allocated to apprentices, while in micro-SMEs and ET SMEs, training is more specifically oriented towards technicians and workers, including apprentices. ...
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Purpose The purpose of this paper is to provide a comprehensive description and analysis of quality levels with regard to dual Vocational Education and Training (VET) at companies participating in this programme in Spain, with a specific focus on company size. Design/methodology/approach The study is based on a quantitative cross-sectional analysis, collecting quality indicator data from 829 participating companies through a structured questionnaire. Subsequently, both descriptive and inferential analyses were conducted to address the specific objectives. Findings The study reveals that, on the whole, companies implement dual VET with a high level of quality, achieving compliance rates of above 70% in dimensions related to process, resources, staff and training. However, in this study the dimensions of evaluation and synergies showed lower compliance rates, with figures of 47.4 and 25.7%, respectively. Notably, medium-sized and large companies outperformed micro-SMEs and SMEs in training, evaluation and synergies, while SMEs surpassed large companies in resource management. The study provides recommendations for enhancing dual VET in companies. Research limitations/implications The main limitations of this study pertain to an absence of data concerning the distribution of the population by company sizes and a lack of information regarding the specific sectors to which these companies belong. Originality/value This study offers significant value, as it provides data on the quality of dual VET in companies considering size as a key factor. These findings are particularly noteworthy given that research on the quality of dual VET in companies remains limited within the scientific literature.
... So, if organizations choose to invest in the training of their current employees to be ready for future opportunities that arise, then those employees are likely to be more loyal and committed in return (Bidwell and Keller, 2014;Bolander et al., 2017;Chami-Malaeb and Garavan, 2013;Collings and Mellahi, 2009;Lowe and Graves, 2016) (For a seminal paper on social exchange theory, see Ekeh, 1974.) Evidence also suggests that externally-hired applicants tend to earn a wage premium relative to internallyhired applicants, on average (Bidwell and Keller, 2014;Hansson, 2007;Keller, 2018). Given this picture, it would appear that relying on "making" talent in house would be the better option for employers. ...
... developing) talent (e.g. Collings and Mellahi, 2009;Hansson, 2007). It would also appear that some organizations, especially smaller ones, have less ability and resources and/or less inclination to provide formal training to their employees (see Hansson, 2007;Kim and Ployhart, 2014;Kotey and Folker, 2007). ...
... Collings and Mellahi, 2009;Hansson, 2007). It would also appear that some organizations, especially smaller ones, have less ability and resources and/or less inclination to provide formal training to their employees (see Hansson, 2007;Kim and Ployhart, 2014;Kotey and Folker, 2007). ...
Article
Purpose This paper presents a typology exploring employers’ perceptions of the quality of available applicants and employers decisions to buy qualified staff vs. to hire available workers and then make i.e. develop them via employer-supported training. Design/methodology/approach This study uses 2015 survey data from Southwestern Ontario, Canada, based on responses from 834 employers regarding their hiring, separations, training and other HRM policies. Findings Among surveyed employers, 10% are “Reliants” who found the quality of available applicants to be low, yet these employers do not provide employee training. Almost half of employers (at 45%) are “Developers” who find the quality of applicants to be low but they do provide employee training. Approximately, 7% of employers are “Poachers” who find that the quality of applicants is high and do not provide employee training, while 38% are Refiners, who find the quality of applicants is high and they provide employee training. Originality/value Employers need to make their training decisions in alignment with their assessment of the quality of job applicants to whom they have access. In this paper, decisions on training and applicant quality are considered concurrently. From an academic viewpoint, the findings raise the issue as to whether other stakeholders (such as educational institutions) are sufficiently helping individuals gain the skills, credentials and work experiences that employers are seeking. If job openings are remaining unfilled because employers are unwilling to hire those available, then applicants lose, employers lose and societies lose.
... Among the main HRM activities, T&D is of special importance, given that it is positively related to not only HR activities but organizational outcomes, too (Stavrou, 2005;Shipton et al., 2006;Hansson, 2007;Morley et al., 2016b;Berber and Lekovi c, 2018;Dostie, 2018). According to B alint and Karoliny (2017), the majority of employees aspire to nurture their skills and believe that their employer should invest in their training. ...
... The findings of Esteban-Lloret et al. (2018) support the idea that both economicrational and institutional determinants influence employee training. According to Hansson (2007) and Goergen et al. (2012), the crucial factors in determining the training practice in organizations include: ...
... (1) Employee turnoverhigh staff turnover rates reduce the capacity of organizations to recoup their training investment, i.e. companies are losing their trained employees who passed T&D programs (Goergen et al., 2012); moreover, high staff turnover will be related to higher investment in training in order to satisfy development needs of employees and to obtain necessary knowledge and skills for newly hired employees (Hansson, 2007). In this research, the annual staff turnover is expressed by the percentage of employees who left the organization in the given year. ...
Article
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Purpose The aim of this research is to investigate and detect determinants of the training practice and conspicuous differences in the sample of nine Central and Eastern European (CEE) countries (Croatia, Estonia, Latvia, Lithuania, Hungary, Slovenia, Slovakia, Serbia and Romania). The study was conducted with three distinct objectives: the investigation of the training and development (T&D) practices in the CEE region, the investigation of the determinants of T&D practices in the CEE region and the measurement of the differences between the economies in the sample of CEE countries regarding their T&D practices. Design/methodology/approach The research is based on the Cranet research network results from 2015 to 2016. The data for the CEE countries were selected in order to investigate the determinants of T&D practice, and the differences between these economies. The nine CEE countries were divided into two groups, on the basis on the variety of capitalism (VoC approach), in order to investigate its effects on the T&D practices. T -test, chi-square test, Spearman correlation tests and hierarchical moderated regression model were used to test the proposed hypotheses. Findings There are statistically significant differences between the organizations from coordinated market economy (CME) countries and liberal market economy (LME) countries in the case of the percentage of GDP of the country spent on education, the percentage of annual payroll costs of the organizations spent on training, the percentage of annual staff turnover, the implementation of the systematic evaluation of training needs, the training effectiveness, the existence of T&D strategy and the primary responsibility for major policy decisions on T&D. The results of the regression model showed that the majority of national and organizational level factors have a statistically significant relationship with the percentage of the annual payroll costs of the organization spent on training. Variety of capitalism moderates the relationship between independent variables and the dependent variable, too. Research limitations/implications In the presented model, the authors excluded from their investigation the effects of MNCs. It must further be stated that only the data from the latest Cranet research round were used, thus it was not possible to investigate the development of the training practice in CEE over a longer time period. These limitations could be used as possible directions for further research in the relevant area of HRM in the CEE region. Originality/value Since there is relatively little empirical research in the relation between capitalism type and T&D practice, especially in the region of CEE, the present paper lends new insight into this issue as well as into comparative HRM. It is hoped that this work can be taken as a starting point for further research.
... The difficulties of employee training are discussed in the literature in the context of continuing training (Buyens & Wouters, 2005;Lambert & Vero, 2013), training effectiveness and evaluation of training programs (El Baroudi et al., 2018;Kucherov & Manokhina, 2017), and the impact of employee training on organizational performance (Dermol & Čater, 2013;Hansson, 2007). One of the difficulties that companies experience in training processes is employee absenteeism in training. ...
... Although they see training as career advancement, it is not the only determinant of their stay in their jobs (Acton & Golden, 2003). As a result, employee turnover could be a substantial cost as companies invest in employee training (Hansson, 2007). ...
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Purpose: The present study explores the primary characteristics of employee training practices by way of analysing the employee training policies of the top two companies with the highest sales revenue in Türkiye. The primary characteristics of employee training practices are examined within the scope of the corporate employee training activities and the practices to cope with the challenges in the organization of employee training. Methods: Employing qualitative approach, document analysis was conducted within the context of two cases. The two companies with the highest sales revenue in Türkiye were selected as cases in the study. The companies were determined through criterion sampling in line with the financial performance based on net sales revenue, stability of financial performance and potential for corporate training policy development criteria. The six years of sustainability and activity reports of the companies were analysed through thematic analysis. The documents were analysed through thematic analysis using open coding. Employee training policies and practices were presented under the sub-themes of personnel training types, subjects of personnel training, training infrastructure, factors considered in the design of training processes and supportive practices for training processes. Findings: Employee training of the companies mostly consists of formal and non-formal training activities designed according to the needs of employees. These training activities aim at both occupational and personal development of the employees. The training activities, which are mostly organized with the use of internal resources, also allow employees to make their own personal development plans. The dominant common aspects of the employee training policies of the companies show that the successful integration of employee training to the career management systems increases the efficiency of training activities. The study results also illustrate that the employee training policies can be strengthened through corporate capacity development activities. Conclusion: Institutionalization of training practices that contribute to workplace learning has an important role in the financial gains of highly competitive organizations. The success of corporate training practices for employees requires both an effective design in terms of content and process and a strong establishment of corporate training infrastructure. The provision of formal and informal learning opportunities structured according to employee needs through a strong corporate training infrastructure and planning the career development of employees based on the outputs of training activities are the indicators of successful company performance.
... Companies and managers generally accept the positive existing relation between managers' skill levels and their contribution to company success and are aware of the need for continuous management training, or CMT (Russell, 1985;Ng et al. 2004;Garcia, 2007), as a means of development and permanent training, especially within the framework of a highly dynamic competitive environment (Pickett, 1998;Helfat, 1991 andAdell et al., 2002;Landeta et al., 2007). The benefits of training programmes, in terms of business results (or at least the positive correlation between training effort and economic outcomes), have been pointed to in numerous studies (Aragón et al., 2003;Úbeda, 2005;Tharenou et al., 2007;Hansson, 2007;Nikandrou et al., 2008;Muñoz and Salinero, 2011;Ng and Dastmalchian, 2011), even in the specific case of management training (Marshall et al, 1995;Storey, 2004). The cost of management training, meanwhile, does not appear to be a determinant variable that would justify not providing educational backup in this area (Landeta et al., 2007). ...
... Over all, considering the number, score awarded and consensus reached for the proposals collected, it seems clear that companies pay much more attention to obtaining the information they need for management training and to properly managing it, than to covering themselves against possible opportunistic behaviours on the part of their managers. That is to say, they appear to be more concerned by the problem of adverse selection, in the sense of not making the correct decisions due to lack of information about their managers and about training suppliers, than by the problem of moral hazard, when decisions are taken without knowledge of the ultimate intentions of their managers, which may give rise to opportunistic behaviours by the latter; this is consistent with the results of previous studies by Hansson (2007) and by Landeta et al. (2009), although it must be noted that this conclusion is linked to the business and socio-economic context within which each research unfolds. ...
Article
Purpose. This work aims to present, from the company viewpoint, a structured account of management proposals and practices directed toward improving the intensity and effectiveness of continuous management training (CMT).Design/methodology/approach. The article takes as its main theoretical referents the Theory of Human Capital, the Resource-Based Vision and the contributions made via the new institutional economy with regard to the problems of information asymmetry between companies, employees and training providers and completes the proposals that derive from this theoretical approach. To do this, experience-based contributions are collected from a selection of company training and HR managers from twelve Basque companies characterised by their strong investment in management training. The methodology used was qualitative and obtained by different qualitative techniques: Focus Groups, Nominal Groups and the Delphi Method, which make up the so-called Hybrid Delphi.Findings and implications. The proposals are aimed at the main agents in training activity: training providers, associations and public agents engaged in management training and, particularly, companies themselves. The initiatives seek above all to increase training market transparency, to improve mutual commitments between companies and managers, and to link training and development with culture and strategic management, so that firms make optimal investment in management training.Originality/value. The methodology used is original, and the contributions are consistent with the theory,have a proven practical utility, and are presented in a hierarchy, which facilitates decision making.
... Similarly, the existence of a formal HR department in the workplace is emblematic of both normative and cognitive organizational institutions, as most HR departments are typically staffed by HR professionals following similar codes of practice and sharing similar ethical norms and because managers sharing similar educational and professional backgrounds tend to adopt similar business practices (Di Maggio & Powell, 1983;Erickson, & Jacoby, 2003). Firms with HR departments have, therefore, been found to provide more training (Hansson, 2007;Hoque & Bacon, 2006;Murphy & Southey, 2003;Whitfield, 2000), which from an organizational institutional context, is not surprising. ...
... 9 Given the above, we operationalize several macro-level antecedents of training that capture the 'business/market position' of the organization allowing it to mobilize training activities. These include: (1) the organization's market structure/competitive position (i.e. is the firm 'an industry leader' or 'an industry laggard'), (2) firm profitability (Hansson, 2007) and the presence of any (3) disruptive organizational changes (Xu & Lin, 2011) in the previous year. ...
... Similarly, the existence of a formal HR department in the workplace is emblematic of both normative and cognitive organizational institutions, as most HR departments are typically staffed by HR professionals following similar codes of practice and sharing similar ethical norms and because managers sharing similar educational and professional backgrounds tend to adopt similar business practices (Di Maggio & Powell, 1983;Erickson, & Jacoby, 2003). Firms with HR departments have, therefore, been found to provide more training (Hansson, 2007;Hoque & Bacon, 2006;Murphy & Southey, 2003;Whitfield, 2000), which from an organizational institutional context, is not surprising. ...
... 9 Given the above, we operationalize several macro-level antecedents of training that capture the 'business/market position' of the organization allowing it to mobilize training activities. These include: (1) the organization's market structure/competitive position (i.e. is the firm 'an industry leader' or 'an industry laggard'), (2) firm profitability (Hansson, 2007) and the presence of any (3) disruptive organizational changes (Xu & Lin, 2011) in the previous year. ...
Article
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This paper examines the determinants of job‐related training and workplace voice. Using data from a unique 2016 cross‐national survey of Australian, British, Canadian and American employees, the paper contrasts two classic formulations in the literature; (1) the neoclassical/human capital approach which predicts that individual characteristics (such as age and education) which increase the efficiency of learning, will have the largest impact on the allocation of training (i.e. younger and more educated employees will be afforded training) and (2) the traditional institutional approach which favors the structural characteristics present at the industry and firm level, the nature of the job itself and the strategic choices of firms as the major predictors of job‐related training. We find that age – a key factor in the human capital model – plays a significant role in the allocation of training but that education (in keeping with recent evidence) does not. In sum the human capital model provides, at best, only a partial explanation for the differences in training observed across individuals. In contrast, variables invoked by the institutional literature (i.e. occupation level; industry; ownership type; and market structure) are highly significant and account for a much greater proportion of the variance in training observed across workers. Other institutional factors such as the presence of a union and a human resource department were strong positive predictors of job‐related training. But most important were product‐market strategy and employee voice. Respondents working in firms utilizing a ‘high road/high quality’ product/service strategy and with a workplace consultative committee were significantly more likely to receive training than similar workers employed in observably similar firms. This last finding supports the industrial relations view of voice as an important channel by which training is optimally delivered inside the firm.
... The low training participation of low-skilled workers raises questions for both the underlying obstacles and pathways to overcome these obstacles. While there is a relative broad literature on training participation in general (see Frazis et al. 2000;Grund 2012;Hansson 2007;Käpplinger 2007;Wiseman and Parry 2017), fewer studies have focused on the particular group of low-skilled workers (see Abramovsky et al. 2011;Bellmann et al. 2015;Martin and Rüber 2016;Mohr et al. 2016). Moreover, the role of the institutional context did not receive much attention, so far. ...
... It showed evidence that the probability of training investments is higher in larger establishments, certain sectors (such as Education, Health and Care sector), in companies with a good business situation, labour shortages or with modern production facilities (see Bellmann et al. 2010;Ramos and Harris 2012;Wiseman and Parry 2017). Moreover, a high engagement in initial vocational training (Düll and Bellmann 1998), the presence of employee organizations, cooperative work relations (Nienhüser et al. 2006), institutionalized HR practices (Käpplinger 2007;Osterman 1995) or employee-oriented HR policies (Frazis et al. 2000;Hansson 2007) have been proven to be favourable influences. ...
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The article investigates how institutional arrangements at the organizational and sectoral level affect the likelihood and size of employer investments in continuing training for low‐skilled workers in Germany. By building on comparative political economy and organizational theory, hypotheses are derived and tested. Regression analysis based on the IAB Establishment Survey (waves 2011 and 2013) shows evidence that the training participation of low‐skilled workers is related to institutional differences between sectors and organizations. At the organizational level, structures of employee representation and formalized HR policies are positively associated with higher rates of training participation among low‐skilled workers. Moreover, there is evidence that low‐skilled workers benefit in organizational clusters that are characterized by structures of employee representation, formalized HR practices, and bargaining coverage. At the sectoral level, this study finds evidence that low‐skilled workers in the health care and manufacturing sector are more likely to receive continuing training.
... Grossman and Salas (2011, p. 104) state that "effective training can yield higher productivity, improved work quality, increased motivation and commitment, higher morale and teamwork, and fewer errors, culminating in a strong competitive advantage". Hansson (2007) studied the data from 5824 private-sector organizations from 26 countries of the world to examine the determinants of training and relationship between employees' training and profitability. The author established that the training importance (percentage of wage bills spent on training) is weakly associated with past performance and that the incidence of training is strongly associated with a firm's past performance. ...
... This is the estimation of managers regarding their organizational success. Controls and moderator were chosen based on the previous researches on this topic, from Cranet project cycles (Stavrou, 2005;Hansson, 2007;Nikandrou et al., 2008;McNamara et al., 2012). ...
Article
The training and development of employees (T&D) represents one of the most important and basic HR activities, which are a source of creating sustainable change in behaviour and understanding employees. Through the acquisition of new knowledge, skills and abilities (KSA), employees are likely to become more productive and achieve better results. Based on the above-mentioned, this paper aims to explore the relationships between certain aspects of T&D and organizational performance, and the effects of employee training and development (importance of training, effectiveness of training) on organizational performance (productivity and service quality). The methodology used in the research is based on data obtained during the Cranet 2015/16 international survey of HR practices. In order to explore the training and development practices in selected countries of the Danube Region, the authors used descriptive statistics, Spearman’s correlation, and hierarchical multiple regression. The results of the theoretical and empirical exploration led to the conclusion that organizations which have more developed T&D activities achieve higher level of productivity and service quality. Also, no statistically significant differences were detected between countries in the selected region regarding the relation between T&D and the observed organizational performance. © 2019, Kauno Technologijos Universitetas. All rights reserved.
... (Bartel, 1995) 9 in a survey of 2500 U.K firms found a mixed correlation between training expenditure per firm and per employee with profitability. A mixed relationship between Training expenditure as a percent of wage bill and as percent of workforce trained with profitability is also reported by (Hansson, 2007) 12 Majority of the researches mentioned above are suggestive of a positive payoff associated with expenditure on employees. However researchers continue to debate exactly how it occurs. ...
... (Bartel, 1995) 9 in a survey of 2500 U.K firms found a mixed correlation between training expenditure per firm and per employee with profitability. A mixed relationship between Training expenditure as a percent of wage bill and as percent of workforce trained with profitability is also reported by (Hansson, 2007) 12 Majority of the researches mentioned above are suggestive of a positive payoff associated with expenditure on employees. However researchers continue to debate exactly how it occurs. ...
Article
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p>In today’s dynamic business environment, for companies to exist, they must continuously look for areas for improvement and gain competitive advantage. It therefore becomes quintessential for companies to know which factors can have a positive effect on the company’s performance. The purpose of this article is thus to explore if there a relationship between the HR expenses of an Indian company and its financial performance and is this impact positive enough to motivate these companies to augment such efforts in improving the HR management practices. For, this purpose, data on expenditure on human resource and profit after tax (PAT) for BSE- SENSEX 30 companies was extracted for the period of10 years. In order to test the hypothesis of this study, correlation and regression analyses were performed. Results of correlation revealed that HR expenditures are positively related to Firms performance. The findings from regression analysis revealed that HR expenditure have statistically significant effect on a firm’s financial performance.</p
... In contrast, Hansson (2007) found that the size of the organisation is not associated with either of the training incidence or intensity. In Northern Ireland, Reid and Harris (2002) looked at determinants of SMEs' spending on training by including a range of HR management functions as well as workforce characteristics, the external environment, size and the ownership status. ...
... The present finding that firm size related positively with the propensity to training participation is in support of previous studies (Kotey and Folker, 2007;Almeida and Aterido, 2010;Castany, 2008;Waddoups, 2011) which revealed that differences in attitude to training can be attributed to firm size and that more formal training programmes will be adopted as firm size increases. By contrast, the finding is at variance with Reid and Harris (2002) as well as Hansson (2007) who found that the size of the organisation is not associated with training incidence. According to Grant (1991), size provides a firm with vertical bargaining power where the propensity to train is higher in medium or large sized firms than in small-sized firms. ...
Article
Purpose The purpose of this paper is to identify the factors that are likely to predict the likelihood of a small firm choosing to participate in formal training programmes. The objective is to inform public policy and practice with regard to what SMEs must do in order to realise the benefits of participating in formal training programmes like their counterpart large firms so as to remain competitive. Design/methodology/approach The study uses a logistic regression model to ascertain the critical factors that are likely to predict SMEs’ chances to engage in formal training programmes. The data that inform the logit model are based on a non-probability sample of 85 SMEs drawn from Accra, the capital of Ghana. Findings The major findings are that firm size and having younger owner-managers that are daring play a critical role regarding whether or not small firms in Ghana will offer themselves for formal training programmes. However, firm size, including having young and daring owner-managers reflect the internal resource capacity of a firm. The results imply that the internal resource capacity of a firm is critical in predicting whether or not a small firm will offer itself for a formal training programme, although the changing trends from the external environment are also crucial. Research limitations/implications As a result of the lack of an available sample frame, the study is based on a non-probability sample and so it must be noted that the results must be interpreted in that context. Besides, the study sampled SMEs located in Accra, the capital of Ghana, thus future research must extend the study to cover the rest of the nine regions in Ghana. A further analysis based on probability sampling is needed to strengthen the results. Practical implications Consequently for the growth and the development of SMEs in developing countries, the need for owner-managers to first focus on internal resource building is key. What this means is that owner-managers cannot ignore the conscious attempt to monitor, develop and grow their own internal resource strengths before that can be aligned to any changing trends from the outside environment. Originality/value The paper provides evidence as regards why most SMEs worldwide find it difficult to participate in formal training programmes. The findings seek to enhance the understanding of the barriers to the growth of SMEs’ line of research.
... Ayrıca, eğitimlerin ve gelişimin çalışanlara dolaylı bir katkısı da, işletmenin onları uzun vadede elde tutmak niyetinde olduğu mesajını verdiğine dikkat edilmelidir. Hansson (2007) tarafından bir araştırma, eğitimlere yapılan yatırımın yoğunluğunun kârı etkileyen temel faktörlerden biri olduğunu ortaya koymuştur. Operasyonların ekonomik sonucu eğitimlerin ekonomik faydası, çalışan devir maliyetinden daha fazla olmaktadır. ...
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Yirmi birinci yüzyılın sürekli değişen dünyasında, örgütler yalnızca ekonomik büyüme hedeflerini gerçekleştirmek değil, aynı zamanda çevresel ve toplumsal sorunlarla başa çıkmak için stratejik sorumluluklar da üstlenmektedir. Artan rekabet, kaynakların hızla tükenmesi, iklim değişikliği, küresel eşitsizlikler ve toplumsal adaletsizlikler, iş yaşamını sürdürülebilirlik ekseninde yeniden düşünmeye zorlayan temel unsurlardan bazılarıdır. Bu bağlamda, örgütlerin faaliyetlerini yalnızca kar odaklı olmaktan çıkararak daha geniş bir açıdan ele almaları, sürdürülebilir bir gelecek için hayati önem taşımaktadır. Sürdürülebilirlik, çevresel koruma, toplumsal refah ve ekonomik dayanıklılık unsurlarını bir arada barındıran bütüncül bir yaklaşımı temsil etmektedir. Bu anlayış, örgütlerin yalnızca doğaya daha az zarar vermesini değil, aynı zamanda toplumun ihtiyaçlarına duyarlı bir şekilde hareket etmelerini ve uzun vadeli değer yaratmalarını sağlamayı amaçlamaktadır. Günümüzde sürdürülebilir yönetim, örgütlerin rekabet üstünlüğünü artırmakla birlikte, marka güvenilirliğini güçlendiren ve paydaşlar arasında olumlu bir algı oluşturan önemli bir stratejik araç haline gelmiştir. Elinizdeki bu kitap, sürdürülebilir yönetim kavramını çok yönlü bir bakış açısıyla ele alarak, okuyuculara bu alanda kapsamlı bir bilgi kaynağı sunmayı amaçlamaktadır. Kitap, ekonomik sürdürülebilirlikten çevresel sorumluluklara, sosyal sürdürülebilirlikten dijital dönüşüm süreçlerine kadar geniş bir yelpazede sürdürülebilir yönetimin farklı boyutlarını ele almaktadır. Her biri kendi alanında uzman olan yazarlarımızın katkılarıyla zenginleşen bu çalışma, sürdürülebilir yönetim anlayışını teorik bir çerçeve ile somut uygulamalar ışığında değerlendiriyor. Bu çalışma hem akademik hem de pratik açıdan önemli bir boşluğu doldurmayı hedeflemektedir. Akademisyenler, öğrenciler ve konuya ilgi duyan tüm okuyucular için sürdürülebilir yönetim konusunda derinlemesine bir kaynak sunarken, yöneticilere ve karar alıcılara örgüt süreçlerini sürdürülebilirlik ilkelerine uygun bir şekilde yeniden yapılandırma konusunda ilham vereceğine inanıyoruz. Kitabımız aynı zamanda sürdürülebilir yönetim anlayışının, bireylerin günlük yaşamlarından uluslararası iş birliklerine kadar her alanda etkili bir değişim yaratabileceğini göstermeyi amaçlamaktadır. Kitabımızın, sürdürülebilirlik yolculuğunda olan örgütlere ve bu alanda araştırma yapan akademisyenlere rehberlik etmesini temenni ediyoruz. Ayrıca, sürdürülebilir bir gelecek inşa etme hedefiyle yola çıkan herkes için ilham kaynağı olmasını ümit ediyoruz. İş yaşamında ve toplumda daha sorumlu ve bilinçli bir yönetim anlayışı oluşturmaya katkıda bulunmak, bu kitabın en temel amaçlarından biridir. Son olarak, bu çalışmada emeği geçen tüm yazarlarımıza, sürdürülebilirlik konusuna olan tutkularını ve bilgi birikimlerini okuyucularımızla paylaştıkları için teşekkürü bir borç biliyoruz. Kitabın, bu alanda yeni ufuklar açarak daha yaşanabilir bir dünyanın inşasına katkı sağlayacağına olan inancımız tamdır. Saygılarımızla, Dr. Öğr. Üyesi Nida PALABIYIK Öğr. Gör. Esra Akay
... Der positive Einfluss von Personal und guter Personalarbeit auf den Unternehmenserfolg wird in verschiedenen Studien (BCG, 2023;Guest et al., 2003;Katou, 2008;Wang & Yang, 2007) und Meta-Analysen (Gmür & Schwerdt, 2005;Liu et al., 2007) bestätigt. Auch für die Personalentwicklung und betriebliche Bildung zeigen sich positive Befunde (Hansson, 2007;Salas et al., 2012;Suleiman & Ilyas, 2018;Ubeda-García et al., 2013). Erfolgsrelevante Faktoren sind dabei insbesondere der Stellenwert des Personalwesens in der Unternehmensstrategie als auch die strategische Gestaltung des Personalbereichs (BCG, 2023, S. 5;Katou, 2008, S. 134-135) Braun und Pundt (2020, S. 8) resümieren: "für nahezu alle Aktivitäten rund um die Ressource Mensch lässt sich zeigen, dass das aktive Management der Ressource Personal einen Beitrag zum Unternehmenserfolg leistet." ...
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Im Rahmen dieser Arbeit wird das betriebliche Bildungsmanagement, mit Bezug zum strategischen Management, im Gesamtgefüge von Unternehmen eingeordnet. Dafür wird schrittweise, über das Management als Steuerungssystem mit seiner funktionellen und institutionellen Aufgabe, sich dem strategischen Management als Planungsorgan des unternehmerischen Handelns genähert. Identifiziert als wesentliche Managementaufgabe, wird das Personalmanagement mit besonderem Fokus auf die Teilfunktion der Personalentwicklung beleuchtet. Durch dieses Vorgehen kahh eine gradlinige Verbindung von Unternehmensführung über das Personalmanagement weiter über die Personalentwicklung hin zum Bildungsmanagement skizziert werden. Ferner wird die Bedeutung von Personal als intangible Ressource und die Notwendigkeit einer abgestimmten und strategieorientierten Personalarbeit aufgezeigt. Im Ergebnis zeigt sich Bildungsmanagement als erfolgsrelevante intraorganisationale Institution, die mittels meso- und mikrodidaktischen Handelns die Unternehmensstrategie operativ umsetzt und so einen begrenzten, aber wesentlichen Beitrag zur Wertschöpfung eines Unternehmens beiträgt.
... This has led the Human resource management struggling to cope with the new challenges and requirements for the new work environment. One of the critical functions of the Human resource management in any organization is developing the knowledge and skills of the employees operating in that organization (Hansson, 2007). According to Becker and Huselid (2010), the strategy of the firm must be understood by the employee working in all the levels, so they can contribute to the organization and enhance their performance. ...
... However, the single most important factor associated with profitability was how much was invested in training (intensity), suggesting that the economic benefits of training outweighed the cost of staff turnover. The study contributed to the existing training literature by offering extensive access to internal measures of training, profitability, HRM practices, workforce characteristics, and staff turnover for companies in 26 countries worldwide (Hansson, 2017). ...
... The authors contend that human capital is a valuable asset, and schooling is merely one part of a comprehensive process of accumulating skills throughout a lifetime. Hansson (2007) investigated the impact of training on company performance and found that the occurrence and degree of training are mostly determined by factors specific to the organization, such as human resource management practices. The turnover of staff doesn't appear to be a significant factor in clarifying the provision of training, but investing in training is crucial for firms to preserve their employees and reduce turnover. ...
Article
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The purpose of this paper is to investigate the perceptions of business managers in the furniture sector regarding the relationship between business success and personnel knowledge. To achieve this goal, the study will use a quantities research approach to collect data from business managers working in different furniture sector in District Chiniot, Lahore, and Gujrat. The study used a measurement technique called Likert scale and included a variable that cannot be directly observed, called a latent variable that’s why used statistical model called Structural Equation Modeling (SEM). According to the findings of the study, certain factors have a significant impact on both personnel knowledge and business success. Specifically, the results indicated that management practices related to safety regulations, regulation laws, motivation of personnel, total quality management, product certification, and competitive positioning are highly correlated with personnel knowledge. This suggests that when these management practices are implemented effectively, employees are more likely to have the knowledge and skills necessary to perform their job duties efficiently, which can ultimately contribute to the success of the business. On the other hand, the study also found that factors such as new product development, sales abilities, total quality management, competitive positioning, and product pricing are highly associated with changes in business success. This means that when business focus on improving these areas, they are more likely to see positive changes in their overall success and performance. To begin an effort focused on enhancing skills, it is essential to first concentrate on owners by offering them excellent training services. These services should produce concrete improvements in productivity and illustrate the significance of skill improvement.
... Training as a Sustainable HRM practice has taken a long-term perspective on the organization's development into consideration (Nuninger et al., 2016;Kwon, 2019;Piwowar-Sulej, 2021). In this connection, Hansson (2007) and Hirsig et al. (2014) highlighted the beneficial outcomes of STP by conducting a cost-benefit analysis of investing in training rather than infrastructure. Their results demonstrate that training the current workforce for diverse activities is significantly more advantageous than rapidly hiring new employees (Stankevičienė & Stankevičienė, 2018). ...
Article
This study evaluates Sustainable Training Practices (STP) that promote organizational growth and ensure the attainment of sustainable HRM objectives. First, we employ Structural Equation Modelling to identify relationships between STP, Psychological Contract Fulfilment, Job Satisfaction, and Organizational Citizenship Behavior. Next, we build a predictive model using the RF Regression Supervised Machine Learning technique to identify the key predictors. Our findings indicate that employee happiness, expectation fulfilment, and behavior are highly dependent on the STPs offered to them. In addition, we find that machine learning is crucial because it reveals hidden features that are sometimes overlooked by conventional methods.
... We used the share of children 0-2 years old enroled in early childhood education and care services (International Standard Classification of Education [ISCED 2011] level 0)-a very commonly used proxy for childcare availability (e.g., Budig et al., 2016;Pettit & Hook, 2012). (1 = primary education to 7 = doctorate) (Hansson, 2007); current employment status (full time = 1, part time = 2) (Arulampalam & Booth, 1998); size of current employing organisation (1 = fewer than 10 employees to 6 = more than 5000 employees) (Brunello & Wruuck, 2020); having children (2 = yes, 1 = no) (Cuddy et al., 2004); and gender composition of industry using International Standard Industrial Classification of All Economic Activities -Revision 4 with a threshold of 60% (Welpe et al., 2015), that is, 1 = female dominated = >60% women, −1 = male dominated = >60% men, 0 = gender neutral = between 60% and 40% women (Wotschack, 2019). Information on women and men per industry was retrieved from the International Labour Organization (ILO) database (ILO, 2016). ...
Article
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Paid parental leave and externally provided childcare are social policies designed to enhance parents' labour force participation. These policies influence not only men's and women's decisions regarding their labour market activity but also organisational decision makers' (ODMs) expectations about their employees' availability to work and thus, their willingness to invest in their employees' human capital. Using a sample of over 13,000 individuals from 19 countries, we investigate the interaction between gender and social policies on human capital development practices. In line with statistical discrimination theory, which suggests that ODMs hold different expectations about female and male productivity, we find that paid parental leave and externally provided childcare are negatively associated with the provision of human capital development for women but not for men.
... Dimension 2learning processes Learning processes group OL characteristics according to the focus of concrete business practices: individual; structural; or network. In the first sub-dimension, learning processes focus on individual self-development through initiatives of continuous training and development, a concept that is referred to by several studies of the framework previously in this paper (Bryan, 2006;Hansson, 2007). This feature considers the provision of resources and facilities, encouraging the self-development of employees and could be accompanied by Sustainable companie reward flexibility, such that employees are rewarded for providing new ideas (Wilson and Beard, 2014). ...
Article
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Purpose The purpose of this study is to extend the knowledge on sustainable organisational learning (OL) in sustainable companies. Design/methodology/approach Sustainability is examined from an OL perspective and was based on Edward’s integral cycle of learning. An in-depth analysis of the literature was carried out, and a list of OL characteristics, such as openness to new ideas and participative policymaking, were compiled. To identify which OL characteristics are used for sustainability, a multiple-case study was designed for sustainable companies operating in the food and beverage industry. Findings This study found a wide variety of sustainable practices, such as experimentation and information-sharing systems, related to learning processes, and learning leadership appears to be the least developed dimension. It was also found that sustainable companies learn through social rather than reflective learning, in relationships with internal and external stakeholders, and by concrete actions to implement environmental and social impacts. Originality/value This study is one of a few that explore sustainable OL and contributes to categorising OL characteristics that sustainable companies use to facilitate and support sustainability in the mid–long term.
... We used the share of children 0-2 years old enroled in early childhood education and care services (International Standard Classification of Education [ISCED 2011] level 0)-a very commonly used proxy for childcare availability (e.g., Budig et al., 2016;Pettit & Hook, 2012). (1 = primary education to 7 = doctorate) (Hansson, 2007); current employment status (full time = 1, part time = 2) (Arulampalam & Booth, 1998); size of current employing organisation (1 = fewer than 10 employees to 6 = more than 5000 employees) (Brunello & Wruuck, 2020); having children (2 = yes, 1 = no) (Cuddy et al., 2004); and gender composition of industry using International Standard Industrial Classification of All Economic Activities -Revision 4 with a threshold of 60% (Welpe et al., 2015), that is, 1 = female dominated = >60% women, −1 = male dominated = >60% men, 0 = gender neutral = between 60% and 40% women (Wotschack, 2019). Information on women and men per industry was retrieved from the International Labour Organization (ILO) database (ILO, 2016). ...
... Hence, professional training and development programs initiated by SHRM can improve employees' POP and reduce ETI (Korff et al., 2017;Guan and Frenkel, 2019). Hansson (2007) indicated that "about 60-70 per cent of all company training is considered to have a value to other employers" (p. 324). ...
Article
Purpose – Applying the job-demand resources model and the psychological contract theory, this paper aims to examine the mediating influence of employee turnover intentions (ETI) on the relationship between strategic human resource management (SHRM) and perceived organisational performance (POP). Design/methodology/approach – With a two-phase data-collection method, 200 complete responses were collected through an online questionnaire survey. This study applied a structural equation modelling to examine the multivariate associations and provided comprehensive outcomes for the proposed hypothesised model. Findings – This study suggests that SHRM has direct significant effects on both ETI and POP; partial mediational effect on POP via ETI; and ETI has negative effect on POP. Practical implications – This paper suggests that organisations aiming higher POP should encourage SHRM and improve their strategic approaches of HRM. The implications of the study results can help organisations to recognise the adverse effects of ETI and effective SHRM outcomes. Originality/value – Despite the significant relationship between HRM and organisational performance, limited empirical research has been conducted on the mediational influence of ETI. This paper examines the unique meditational role of ETI on the relationship -between SHRM and POP, which has not been utterly observed from employee perspective. Keywords Mediation, Strategic human resource management, Employee turnover intentions, Perceived organisational performance, Bangladesh Paper type Research paper
... This will increase the firm's reputation, hence, maximizing shareholders value. Conclusively, sustaining and obtaining the essential skilled resources will need substantial investment to ensure well-organized and efficient workforce to upkeep future growth, and, therefore, profitability [132]. Many mining firms have internal training hubs and fund studies through scholarships, grants and loans. ...
Article
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Whether corporate sustainability disclosure (CSD) affects profitability remains indistinct to many firms. This paper examines the relationship between corporate sustainability disclosure and return on investment. The sample of this study consisted of ten Johannesburg Stock Exchange (JSE)-listed mining companies, and the data was extracted from sustainability reports for a period of five years from 2010 to 2014. In this regard, data collection was undertaken by the adoption of a content analysis approach. A multi-regression analysis was used to analyze the relationship between environmental disclosure and return on investment. The same statistical mechanism was employed to determine the association involving social disclosure and return on investment. Results show that there is a negative relationship between environmental disclosure and return on investment. On the other hand, the research reveals that there is also a positive association between social disclosure and return on investment. This implies that an increase in corporate reporting of social issues results in heightened financial performance through an increase in return on investment. This study recommends the adoption of corporate social disclosure as it will encourage firms to be socially responsible, while also generating financial benefits. Further studies can be conducted about the change from voluntary corporate social disclosure to mandatory disclosure.
... Consistent with most of the literature (Baldwin and Johnson 1995) relating to training and firm size, we find that small firm training expenditure is 19-39% less than the training expenditure of medium-sized firms, while large firms spend 13-58% more on training than medium sized firms (Hansson 2007). ...
Article
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Firms that aim to compete globally have to invest in knowledge and have to use knowledge returns to increase their competitive advantage. This paper extends our understanding of returns to knowledge investment by focusing on innovative training and skills in entrepreneurial organizations and incumbents, as well as the role of legal protection in further investment in knowledge. Using novel innovation data for a panel of 4049 firms in the UK, this paper estimates the training premium for the country’s most innovative firms. Returns on training vary between start-ups and incumbents and during economically-constrained times. Specifically, the study highlights evidence for higher returns on training during times of crisis and lower returns before the crisis. In filling a gap in the calculation of returns to investment in knowledge creation within organization, the study advances our understanding on how entrepreneurial firms need to invest in training and skills to increase innovation outcomes.
... The fear of employee turnover might result in the organization's minimization of employee training and development. However, an empirical research by Hansson [111] reveals that intensity of the investment in trainings is one of the key factors affecting profits. Economic outcome of operations-economic benefit of trainings outweighs the costs of employee turnover. ...
Article
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The common agreement in human resource management (HRM) literature suggests that organizations willing to attract and retain human resources for running business in the future must change the prevailing situation where human resources are rather consumed than developed. In doing this, sustainable HRM has been introduced recently as a response to changes on societal level, labor market, and employment relations. Sustainable HRM is seen as an extension of strategic HRM and presents a new approach to people management with the focus on long-term human resource development, regeneration, and renewal. However, the attributes of sustainable HRM, as compared to mainstream HRM, are not clear. The paper aims at closing this gap by proposing and revealing the characteristics of sustainable HRM, namely: Long-term orientation, care of employees, care of environment, profitability, employee participation and social dialogue, employee development, external partnership, flexibility, compliance beyond labour regulations, employee cooperation, fairness, and equality. This is a theoretical paper.
... Development of employee knowledge and skills is generally regarded as a critical HRM function (Hansson, 2007). Employees at all levels need to understand the firm's strategy including their own contribution and the need to continuously improve their job performance (Becker and Huselid, 2010), particularly in the context of rapid process and product innovation. ...
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Purpose The purpose of this paper is to investigate the influence of firm training on the job performance of mainly semi-skilled manufacturing employees in the context of changes required to ensure the competitiveness of contemporary Chinese manufacturing. Design/methodology/approach Data were collected using a survey with time-lagged method and from multiple sources. The sample included 348 supervisor-subordinate dyads from two Chinese manufacturing firms. PROCESS macro tool (Hayes) was used to test the mediating role of work engagement and the moderating role of HRM strength in the training-performance relationship. Findings Work engagement mediates the relationship between training and in-role task performance, while the relationships between work engagement and both task performance and organizational citizenship behavior are moderated by HRM strength. Research limitations/implications Based on a time-lagged survey, causal relationships cannot be drawn from this study. Results point to future research on the training-performance relationship that more closely considers antecedents and the organizations’ internal and external contexts. Practical implications Managers should pay close attention to the context and process of training and learning from the employees’ perspective. In addition, a strong HRM system will improve the benefits of training on employee performance. Originality/value This study provides theoretical explanations on the mechanisms linking training and employee performance based on the ability-motivation-opportunity framework.
... There is a vast literature on both the economic and social factors of training. The dominant strand in the literature belongs to those labour economists who mostly pay attention to economic factors, such as unemployment (Berger, Earle and Sabirianova, 2001;, tenure, work experience, position in the wage distribution, and educational attainments Booth and Bryan, 2005;, labour market institutions (Gimpelson, Kapeliushnikov and Lukiyanova, 2010), industrial and sectoral differences (Lazareva, 2006;Lazareva, Denisova and Tsukhlo, 2006;Méndez and Sepúlveda, 2016), local density of firms (Brunello and Gambarotto, 2007;Rzepka and Tamm, 2016), and organisationspecific determinants, such as ownership etc. (Booth and Bryan, 2005;Hansson, 2007;Parker and Coleman, 1999;Travkin and Sharunina, 2016). Most of these researchers promote their findings as a contribution to the recent theory of market imperfections Picchio and van Ours, 2011). ...
Thesis
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The acquisition and maintenance of human capital are considered key drivers of productivity and economic growth. However, recent literature shows that in the case of Russia, this relationship is not obvious, which raises a question concerning the nature of human capital accumulation, despite the significant expansion of tertiary education in this country. The existing literature, much of it relying on a theory of market imperfections, tends to explain low incidences of training by the lack of employer incentives to invest in the human capital of their employees. This dissertation adds to this view confirming the negative role of ‘bad’ jobs and social origins in obstructing employees from skills development in BRIC-like countries. Skills training in Russia is constrained by stratifying occupational forces comprising jobs with low requirements to skills development, which conserves the working population in generic labour. This reveals the phenomenon of skills polarisation ‘at the bottom’ in a late-industrial country, thus, contributing to the growing critique of the knowledge society theory. For those few workers who occupy ‘good’ jobs, skills training is strongly linked to personal-specific traits, such as qualifications and computer and language skills; and this is common in both Russia and India. However, in contrast to Russia, India is still forming their knowledge society. This is confirmed by the statistically significant impact of socio-demographic origins (e.g. age, household size, marital status, and religion) on the incidence of training, which reveals a crucial role of ascription in human capital acquisition in contemporary India. The present thesis contributes to the growing literature on structural prerequisites for successful advancement and the contradictory development of the BRIC countries. http://repository.essex.ac.uk/21789
... There is a vast literature on both the economic and social factors that relate to training. The dominant strand in the literature belongs to those labour economists who mostly pay attention to economic factors, such as unemployment (Berger et al., 2001;Sabirianova, 2002), tenure, work experience, position in the wage distribution and educational attainments (Arulampalam et al., 2004;Booth & Bryan, 2005;Nikolai & Ebner, 2012), labour market institutions (Gimpelson et al., 2010), industrial and sectoral differences (Lazareva, 2006;Lazareva et al., 2006;M endez & Sep ulveda, 2016), local density of firms (Brunello & Gambarotto, 2007;Rzepka & Tamm, 2016) and organizationspecific determinants, such as ownership, etc. (Booth & Bryan, 2005;Hansson, 2007;Parker & Coleman, 1999;Travkin & Sharunina, 2016). Most of these researchers promote their findings as a contribution to the recent theory of market imperfections (Acemoglu & Pischke, 1999;Picchio & van Ours, 2011). ...
Article
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What factors best explain the low incidence of skills training in a late industrial society like Russia? This research undertakes a multilevel analysis of the role of occupational structure against the probability of training. The explanatory power of occupation-specific determinants and skills polarisation are evaluated, using a representative 2012 sample from the Russian Longitudinal Monitoring Survey. Applying a two-level Bayesian logistic regression model, we show that the incidence of training in Russia is significantly contextualised within the structure of occupations and the inequalities between them. The study shows that extremely high wage gaps within managerial class jobs can discourage training, an unusual finding. Markets accumulating interchangeable and disposable labour best explain the low incidence of training; workers within generic labour are less likely to develop their skills formally, except in urban markets. Although we did not find strong evidence of skills polarisation, Russians are yet to live in a knowledge economy.
... Also, training is a determinant of performance and work efficiency (Harvey et al., 2001). In general, it has been demonstrated that training has a positive impact on organizational performance (Hansson, 2007). ...
Article
Purpose The purpose of this paper is to analyse the relationship between learning processes (LP) – group learning (GL) and training processes – and job satisfaction (JS), by taking into consideration the mediating role of organizational size (OZ) and employees’ educational level (EEL). Design/methodology/approach Data were collected from the Spanish wine sector. The survey was addressed to the workers, and 230 valid questionnaires were obtained. The authors have proven their model of research through a model of structural equations, that is, by means of the partial least squares technique. Findings This paper proposes that LP play a significant role in determining the effects on JS, and OZ and EEL mediate the relationship between GL and JS. Research limitations/implications Owing to certain features of the sample and the use of measurement scales, the final results should be considered with caution. Further research in other contexts using qualitative methods is needed to validate these findings. Practical implications When seeking to improve employee JS, practitioners should take into account the link between LP and JS. It is especially necessary to consider the diversity in learning groups. Originality/value This paper provides an empirical analysis of the relationship between LP and JS and checks the mediation of OZ and worker education of workers between group learning and JS.
... Haque et al., (2015) argued that the sense and feeling of job commitment is lost among employees due to job discontentment. Hansson (2007) states that various firms view training as an effective tool for the profitability and productivity. It also demonstrates that training is highly fruitful for long term and becomes a core of employee's performance excellence, motivation and employee turnover minimization. ...
Article
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This research paper investigates the impact of T&D program on the level of employees' organizational commitment and overall performances in the Banking sector of KPK by considering Bank of Khyber as a case study. Study aims to critically examine all three attributes of organizational commitment (affective, normative, and continuance commitment respectively) and its impact on the job satisfaction in banking sector of KPK, Pakistan. The notions of Guest et.al, (2003) and Wall & Wood (2005) are taken as a foundation to explore the linkage between organisational commitment and T&D program, however both these studies had not investigated all three attributes in equal manner. The focus of these previous studies were more on affective and continuance commitment and did not investigate the causes and consequences that make these attributes to create an impact on the overall performances. Thus this study is significant because it attempts to explain in exploratory manner the reasons behind impact created by training. Inductive approach in a cross-sectional design following interpretive research philosophy research is carried out. The bank of Khyber, KPK is case study selected with 15 regional and branch managers as participants for interviews and 277 employees participated in the survey questionnaire, selected through stratified, convenience, and random sampling technique. Results of present study indicates that to retain skilled workforce, organization has to work on their continuance commitment by offering them promotion and salary increment because these are two factors that enable firms to retain skilled workers. Training increases employees' affective and normative commitment more in general as compare to continuance commitment. This paper contributes to the field of management and administrative sciences by investigating the relationship between T&D program and employees' performance and organisational commitment by exploring workforce and management's perspective through financial institution. It adds to the managerial literature related to T&D in relation with organisational commitment and overall performance in developing country's context.
Chapter
This chapter reflects on companies’ attention to social issues in the design and implementation of staff training activities, in order to understand whether the planning phase is influenced by objectives related to the social dimension. The study adopts a qualitative approach and examines the cases of two Italian companies. Our findings show that in a context informed by ESG-related goals, sustainability awareness can play a key role in planning staff training and developing tailored training programmes. The results also show that differences in the concept of performance adopted by companies can help explain differences in the orientation of employee training. In particular, adopting a sustainability-related concept of performance implies integrating long-term environmental, social, and economic value into training planning. Instead, we find that staff training planning is unrelated to sustainability goals in cases where the company pursues a purely financial performance concept. Our findings contribute to the current debate on the social dimension of corporate activities by shedding light on the actual implementation of training activities and their benefits.
Chapter
This study aimed to determine how training experts perceived performance management, training needs analysis (TNA) and training intervention. A literature review revealed that similar research is underresearched in the South African context of state-owned enterprises (SOEs) operating in the water sector. This study was conducted to address this gap. A qualitative cross-sectional research design was used, and it was interpretive. After reaching a saturation point, 24 participants took part in the study. The data were collected using semistructured interviews and were analysed in ATLAS.ti. The study results showed that employees’ performance contracts and appraisals propel managers to develop employees’ development plans. It was further established when line managers did not have a training budget; they should send employees’ development plans to the human resource development division or the skills development training committee. In addition, it was found that the skills development training committee should be transparent and fair in approving employees’ training applications. In addition, training priority should be on employees in the lower stratum, and it must be competency-based so that employees are certified. Employees might be motivated to attend training if it is linked to recognition and promotion when vacancies arise.KeywordsPerformance managementPersonal development planState-owned enterpriseTraining needs analysis and interventionsWater sector
Article
Purpose The purpose of this study is to explore the role of “overtime norms” as a mediator between performance-driven work climates and employee burnout. This study also examines in-role performance and work engagement as moderators between high-performance climates and burnout. Design/methodology/approach A snowball sample of 214 full-time working adults from the United States participated via an online survey. Data were analyzed using SmartPLS and conditional process analysis. Findings Results from conditional process analyses suggest (1) performance-driven climates are positively related to burnout, (2) overtime norms mediate the relationship between performance-driven climates and burnout, and (3) in-role performance and work engagement moderate that relationship such that highly competent and engaged employees are less prone to stress and burnout. Practical implications These results highlight the dangers of performance-driven work climates on employee well-being. Trends toward extended work hours which can be exacerbated by technological advancements inevitably come at a cost. Managers and organizations should be careful not to prioritize work life over non-work life. Originality/value This study contributes to the literature by identifying overtime norms as a mediator in the performance-driven work climate–burnout relationship. This study also identifies in-role performance and work engagement as resources that can reduce burnout.
Article
This study ascertained the impact of employees’ relations and training practices of Listed Deposit Money Bank (LDMBs) performance in Adamawa state, Nigeria. A survey research design was employed. The population of the study consisted of 120 employees of the entire 14 branches of LDMBs listed in the Nigerian Stock Exchange for the year 2019. Prior to the study, a sample size that provided a high effect size was ascertained through the use of GPower 3.1 software based on effect size d = 0.8, power (1–b = .95). Hence, 112 employees were studied. A structured questionnaire, with 28 items was developed by the researcher. The questionnaire was structured on a 5-point scale. A pilot study was carried out to predict the power and moderation effect of the variables by conducting a test using mean, independent t-test, and Analysis of Variance statistics. The real limit of the mean values was used to make decisions on the entire item. Independent t-tests and analysis of variance were used for in-depth data analyses. It was concluded that employee relations, training and development practices have a positive impact on the performance of LDMBs in Adamawa State. Based on the findings and conclusions of the study, the researchers recommended amongst others that listed deposit banks in Adamawa State should align their human resources management philosophy with a societal culture so as to achieve required corporate results as well as bottom-line performance.
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The study examines the effectiveness of in-service staff training with special emphasis on staff of the Libyan National Oil Corporation (NOC). The study adopts quantitative approach for the collection of data, using a questionnaire. A methodical review of the literature relevant to staff training has been carried out, analysed and discussed. The aim of the present study was to: “evaluate the effectiveness of training of staff at National Oil Corporation (NOC), Libya.” The objectives were to: examine current training programmes and to assess their values to trainee staff and to know whether staff need to update their technical skills, or learn new methods of undertaking their tasks, identify reasons motivating staff to attend training courses, identify whether training courses are relevant to the needs and requirements of trainee staff, identify whether training is based on the goals, objectives, or plans of the organisation, or whether they are general in nature, and to check whether performance has improved, and identify whether training has helped libyanise semi-skilled and skilled staff within the Corporation by the provision of effective training programmes.
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The analysis is to rational the banking activities that prospers on the skills of HR. Earlier in INDIA, Banking was a flourishing business. Initially, the producing homes-based banks with a read to manufacturing capitals for artistic activities and HR accessible to security, liquidity, and truthful returns to the investors briefly banking were thought-about as a conventional business until 1969. Once major banks were condemned by the govt. of India. However once the nationalization of banks ceased to be thought about for providing grant agencies just for the industrial sector and developed a spirited tool of social amendment a lot of of the analysis knowledge are procurable in support of the proposition that their may be a exceptional growth of banking system. Banking is currently a part of the larger monetary industry and variety of players within the market and also the vary of facilities offered are increasing, thereby suggesting a lot of sturdy competition. Understanding the standing of consumers in company culture the UCBs HR unceasingly upgrading the talent of the resources together with human resources in a company for guaranteeing growth and maintaining the pre-eminent position. a considerable study has will be created on the HRM aspects of UCBs. During this space, the banking system wants vital modifications within the basic premises for human resource management and development.
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Human resource management practices are important to determine strategic competition, business sustainability, and tight global issues. Companies that properly apply human resource management practices will compete and win an increasingly fierce business war. There are four approaches to human resource management practices: universalist, contingency, configuration, and contextual. The four approaches provide an important role and contribution in shaping the uniqueness of the company's position in business competition to improve medium and long-term performance. This study has shown that companies with the right and effective implementation or practice of human resource management strategy will improve company performance. This paper provides additional references for researchers as well as to the practitioner environment
Conference Paper
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This paper uses the Johansen cointegration test and the Vector Error Correction Model (VECM) to study the impact of fiscal and monetary policy on economy growth in Vietnam during the period from quarter I/2004 to quarter II/2013. The results showed the cointegration relation between the macroeconomic policies and economic growth. Besides, the variance decomposition and impulse response functions from VECM model showed the impact of the two policies on economic growth were limited, in which the impact of the monetary policy on growth is greater than that of the fiscal policy on growth. Subsequently, the paper provides some recommendations to improve the efficiency of the implementation of these policies in Vietnam.
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The main purpose of this paper is to investigate how the HRM practices create a competitive advantage in the National Bank of Bahrain as a case study, from the perspective of the workers on the Bank. Thus data were collected from a randomly sampled respondent consist of 168 managerial employees of nine sub-bank locals in Bahrain through using a well-structured questionnaire, and validity and reliability to a questionnaire have been tested. descriptive and analytical methods were used, in addition, the Pearson correlation coefficient and simple linear regression test and Unilateral variation analysis (ANOVA). A key question measured in this research to explore how HRM practices which identified in five main factors (as planning and Job Analysis, and Recruitment and Selection, training and development, and Compensation (Pay and Benefits) seek to gain competitive advantage. The findings showed that there is a statistically significant effect of the dimensions of human resources management practices on achieving considerable a competitive advantage in the National Bank of Bahrain
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The objective of this brief general market analysis is to determine with the VRIO framework how the Posadas group has managed to maintain itself in the Mexican lodging market. The aim is to understand how in the current panorama of tourism are the main challenges of the Posadas group. The main question that generated this analysis was: Is Grupo Posadas the current leader in the hospitality sector in Mexico? The hypothesis is that the strategies implemented by Grupo Posadas have allowed it to remain in the lodging sector; however, the current elements are not strong enough to be the market leader. So, combining the analysis elements of the market and the VRIO, results were obtained that pointed to Posadas shares, the leadership with IHG Hotels which begins to generate a more marked oligopolistic competition in the field of tourism
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Training of employees and organizational performance: case of companies in Tunisia Nowadays, companies are considering employee training as the cornerstone of both their policies and management strategies, which can maintain employees at a level of fairly consistent knowledge, intelligence and skills. Based on this observation, we sought to measure the impact of training employees on organizational performance through a research carried out on a sample of 270 Tunisian companies. In order to carry out this work, the methods of structural equations were used to test our conceptual model, not without considering exploratory factor analyzes followed by confirmatory factor analyzes.
Article
Purpose The present paper aims to determine the influence of various enterprise characteristics on on-the-job training. The paper focuses mainly on identifying the influence of a firm’s innovative activity, technological capacity for manufacturing and product market competition on its likelihood of having a training program and on training intensity. Design/methodology/approach The authors administered a firm-level survey to a sample of 2000 Russian enterprises. This survey includes questions about on-the-job training and key information about the companies’ activities. Probit and ordered probit estimates are used in the statistical analyses. Findings The results indicate that an enterprise’s provision of training is determined largely by firm-specific factors, such as its innovative activity, technical and technological state of manufacturing and product market competition.The authors adopt two widely used measures of training: incidence and intensity. Innovative activity and the technical and technological state of manufacturing are decisive factors in explaining a firm’s provision of training, as they have a strictly positive effect on both the incidence and the intensity of training. Product market competition has a positive effect on the incidence of training and a negative effect on the intensity of training. Originality/value This paper is original because it assumes that the process of deciding whether to implement a training program at an enterprise and the corresponding proportion of employees involved in training is built on the presupposition that the training intensity decision is made in two stages. This paper is the first to present estimates of on-the-job training intensity based on data from Russian enterprises.
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This paper investigates whether the presence of fraud training constrains financial statement manipulation and whether the level of regulatory enforcement of countries (measured as both law enforcement and financial reporting practice enforcement) also plays a role. The evidence from a sample of 500 unique companies listed on the five largest European countries (i.e., France, Germany, Italy, Spain, and the UK), data from 2009 to 2014 and multivariate analyses with controls for endogeneity reveals that the implementation of fraud training does reduce earnings manipulation. In addition, it indicates that fraud training increases its effectiveness in countries with weaker regulatory enforcement, thus compensating for country-level institutional deficiencies. These results highlight that the additional resources invested by companies in ethics training generate benefits in terms of reduced earnings management and encourage managers of firms located in countries with weaker institutions to implement such measures because, in these contexts, their effectiveness is amplified.
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Institutional investors have become increasingly interested in analyzing long-term investment risks and rewards posed by environmental, social and governance (ESG) factors. A growing body of data and analytical tools has been developed to assist in the task, but the focus has largely been on environmental and governance matters. This paper helps fill in the gap on social factors, specifically those involving how companies manage workplace relationships, a topic often referred to broadly as human capital or human resource (HR) management. We examine both a wide range of HR policies and separately those that relate directly to employee training.Our survey of the literature on human capital found 92 empirical studies that examined the relationship between HR polices and financial outcomes such as return on equity, return on investment and profit margins. We conclude that there is sufficient evidence of human capital materiality to financial performance to warrant inclusion in standard investment analysis. However, we also find that doing so remains a challenge for a number of reasons. These range from the fact that companies do not provide investors with comparable data to a lack of consensus over which combinations of policies have the most impact on financial outcomes.
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Background Training has been the focus of considerable conceptual and empirical attention but is considered a relevant factor for competitive edge in companies because it has a positive impact on business performance. This study is justified by the need for deeper analysis of the process involving the transfer of training into performance. This paper’s originality lies in the implementation of the absorptive capacities approach as an appropriate conceptual framework for designing a model that reflects the connection between training and business performance through absorptive capacities. ResultsBased on the above conceptual framework and using the dual methodological implementation, a new method of analyzing the relationship between training and performance was obtained: efforts in training will not lead to performance without the mediation of absorptive. Conclusions Training turns into performance if absorptive capacities are involved in this process. The suggested model becomes an appropriate framework for explaining the process of transformation of training into organizational performance, in which absorptive capacities play a key role. The findings obtained can go further owing to fs/QCA: of the different absorptive capacities, that of exploitation is a necessary condition to achieve better organizational performance. Therefore, training based on absorptive capacity will guide and facilitate the design of appropriate human resource strategies so that training results in improved performance. This conclusion is relevant for the development of a new facet of absorptive capacities by relating it to training and resulting in first-level implications for human resource management.
Article
As evidenced by the publication of three meta-analyses in 2013, the importance of collective turnover is garnering increasing attention. Although each of these meta-analyses delivers a unique and significant impact to the HR literature, there remain opportunities to expand and build upon their contributions. In a comparison of the three extant meta-analyses, we found over 90 unique papers that were included in only one of each of the three studies, and > 10 new studies published since 2013. We combined and expanded the existing meta-analyses, offering a comparison of results, as well as contributing to a greater understanding of the role of collective turnover. In the most comprehensive analysis to date, analyzing 2149 effect sizes from 159 studies across 150 articles, we find both support for and divergence from several previously examined relationships, as well as evidence of a curvilinear turnover-performance relationship and of the contagious influence of turnover.
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In 590 for-profit and nonprofit firms from the National Organizations Survey, we found positive associations between human resource management (HRM) practices, such as training and staffing selectivity, and perceptual firm performance measures. Results also suggest methodological issues for consideration in examinations of the relationship between HRM systems and firm performance.
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The relationship between HRM and firm performance has been a hotly debated topic over the last decade, with the great bulk of the primary scientific research coming from the USA and, to a lesser extent, the UK. We start with an overview of this research to give a frame of reference to compare the findings from the Netherlands. By comparing the results of research in the Netherlands with those in the USA and the UK we hope to reveal the secret of achieving 'competitive advantage through people' (Pfeffer, 1994) in the Netherlands. The comparison may further allow us to supplement resource-based approaches with a more institutional perspective.
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This paper comprehensively examined the linkages between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediate outcomes (turnover and productivity) and short- and long-term measures of corporate financial performance. Support for the predictions that the impact of High Performance Work Practices is in part contingent on their interrelationships and links with competitive strategy was limited.
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We examine the relationships among on-the-job training, starting wages, wage growth, and productivity growth. Our models suggest that training lowers starting wages, but the estimated magnitudes are small. When firms are asked directly, we find that they pay higher starting wages to workers requiring less training than is typical, but do not pay lower starting wages to workers who require more training than is typical. In contrast to the results for wage growth, we find a large, robust impact of training on productivity growth, suggesting that firms pay most of the cost and reap most of the returns to training.
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Increasingly, firms are considering the adoption of new work practices, such as problem-solving teams, enhanced communication with workers, employment security, flexibility in job assignments, training workers for multiple jobs, and greater reliance on incentive pay. This paper provides empirical evidence to address the question: do these human resource management practices improve worker productivity? For this study, we constructed our own data base through personal site visits to 26 steel plants which contained one specific steelmaking process, and collected longitudinal data with precise measures on productivity, work practices, and the technology in these production lines. The empirical results consistently support the following conclusion: the adoption of a coherent system of these new work practices, including work teams, flexible job assignments, employment security, training in multiple jobs, and extensive reliance on incentive pay, produces substantially higher levels of productivity than do more 'traditional' approaches involving narrow job definitions, strict work rules, and hourly pay with close supervision. In contrast, adopting individual work practice innovations in isolation has no effect on productivity. We interpret this evidence as support for recent theoretical models which stress the importance of complementarities among a firm's work practices.
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Using data from surveys of enterprises in Ireland in 1993 and 1996-97, the authors estimate the productivity effects of general training, specific training, and all types of training combined. Statistically significant positive effects on productivity are found both for all training and for general training, but not for specific training. The positive effect of general training remains when the researchers control for factors such as changes in work organization, corporate re-structuring, firm size, and the initial level of human capital in the enterprise. The impact of general training varies positively with the level of capital investment. (Author's abstract.)
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There is a vast empirical literature on the effects of training on wages that are taken as an indirect measure of productivity. This paper is part of a smaller literature on the effects of training on direct measures of industrial productivity. We analyse a panel of British industries between 1983 and 1996. Training information (and other individual productivity indicators such as education and experience) is derived from a question that has been asked consistently over time in the Labour Force Survey. This is combined with complementary industry-level data sources on value added, wages, labour and capital. We use a variety of panel data techniques (including system GMM) to argue that training significantly boosts productivity. The existing literature has underestimated the full effects of training for two reasons. First, it has tended to treat training as exogenous whereas in reality firms may choose to re-allocate workers to training when demand (and therefore productivity) is low. Secondly, our estimates of the effects of training on wages are about half the size of the effects on industrial productivity. It is misleading to ignore the pay-off firms take in higher profits from training. The effects are economically large. For example, raising the proportion of workers trained in an industry by 5 percentage points (say from the average of 10% to 15%) is associated with a 4 per cent increase in value added per worker and a 1.6 per cent increase in wages.
Article
A new survey finds that U.S. employers allocate considerable time and resources to training their employees; the incidence of formal training tends to be higher at establishments that are larger and that have lower turnover and more benefits, among other characteristics.
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In this paper, the authors describe the expected increase in the importance of human capital investments, such as training, in affecting organisations' financial performance as economic value becomes more highly dependent on firms' knowledge-based assets. Yet, because such investments are difficult to measure and difficult to standardise, there is little information about the actual effects of such investments. As a result, information on human capital investments typically is currently not taken into account by stock analysts and investors. The authors describe research on a dataset of United States publicly-traded companies that finds that training investments are positively related to a variety of measures of financial performance, and provide an example describing the pathways through which training investments create value for a firm. They describe what steps would be necessary for such information to become more relevant for managers and for investors, discuss significant progress that has been made along those lines, and point to additional steps that still must be taken.
Article
The idea of a transformed or high-performance work system has attracted considerable attention in the United States as an alternative to traditional, mass-production forms of work organization. This article examines the relationships between indicators of high-performance work organizations that are available in the National Organizations Study, on one hand, and measures of organizational performance, on the other. The authors find that characteristics of high-performing work organizations tend to cluster together into a system of organizations. Moreover, the results indicate that human resource policies and practices often identified with high-performing organizations do, in fact, enhance organizational performance.
Article
The organization of employment is often seen as a means to attain or retain competitive advantage in current product markets. High committment organizations and flexible specialization workplaces are some of the new labels of such modem human resource policies (Osterman 1994), the shaping of which should result in high performance. From an outsider's perspective, for instance that of an investor or a banker, such an assumption raises two important sets of questions: - The first concerns the main features of these supposed high-performance work systems and their true association with economic performance indicators. These questions relate to a better understanding of new human resource management (HRM) models in order to understand the effects of HRM on the performance of the firm. - The second set of questions concerns the ability of outside actors to analyze and truly understand these HRM models, about which they often have only poor and piecemeal information. In the event of a negative answer, investors and other outside actors might well be tempted to ignore or distort HRM issues. The latter set of questions is rarely considered by recent research. It is more often the case that investors and financial markets do not fully consider human resource management issues because of speculation and the short-term pressures which are seen to dictate their decisions. Such pressures surely exist, but the main problem might relate more to analytical and informational problems. In this respect, the paper suggests that the French Company Personnel Report could be a useful document. Its published data may enable investors to understand HRM issues more fully and to evaluate their impacts on the performance of the firm. Empirical results are thus presented which reveal some interesting and significant correlations between profitability or productivity ratios and HRM indicators. The two major conclusions are that (a) training expenses may have some important effects on immediate and future economic performance; and (b) some recovery effects of dismissals can also be identified.
Article
In this paper we use data on individual productivity ratings to analyse the productivity and wage effects of enterprise-related training. The average productivity growth of training is 16%, while the average productivity difference between trained and nontrained workers is 8%. The average wage growth is less than a quarter of the average productivity growth. Further, a sizeable fraction of the workers contributes to the costs of training but receives none of its benefits, while another fraction of the trained workers shares in the benefits of training without having contributed to it.
Article
This examination of policies relating to the internal cultivation of human resources and high-performance work systems among a sample of Singapore-based organizations shows that the HRM practices under consideration reflect three distinct dimensions: internal staffing, employee development, and employment stability. Of the three dimensions, only employee development was significantly and positively related to high-performance work systems. Contrary to the arguments in the literature relating to internal labour markets, mutual commitment HRM, and high-performance work systems, policies involving internal staffing and employment stability were not found to be necessary components of the internally oriented HRM package.
Article
The purpose of our study is to extend the emerging empirical literature on the firm-level impact of human resource management practices. Results based on a national sample of organizations from private and public sectors in Israel indicate that these practices have a significant impact on both the perceived organizational and market performance of the organization. The single independent variable found to be statistically significant in affecting perceived organizational performance was training practices. In the case of perceived market performance, we found that, in addition to training practices, employee selection practices also significantly affected the perceived market performance.1 © 1999 John Wiley & Sons, Inc.
Article
The labor turnover rate in Japan is less than half the US level. A small-scale survey of companies that operate in both Japan and the USA was conducted to examine reasons for the discrepancy. The main findings are that Japanese human resource policies, including steep seniority-earnings profiles, extensive fringe benefits, participatory management, and a reluctance to recruit experienced workers from other firms, contribute to the lower Japanese turnover rate. Additionally, workers of Japanese descent in the USA have a somewhat lower labor turnover rate than other Americans, suggesting some role for cultural differences.
Article
Three components of the literature on measuring the employer's rate of return to investments in employee training are reviewed: (1) studiesthat use large samples of firm-level or establishment-level data collected through mail or phone surveys, (2) studies that use data from one or two companies to conduct an ‘econometric’ case study, and (3) company-sponsored case studies. The strengths and weaknesses of each of these approaches are evaluated and the estimated returns on investments (ROIs) are compared. The analysis indicates that the employer's return on investments in training may be much higher than previously believed. In order to obtainaccurate information on the employer's ROI from training, researchers should be encouraged to gain access to company databases and to supplement them with data-gathering efforts to collect information on variables needed to isolate the effect of training.
Article
This study investigates differences in the policies being pursued by more-innovative and less-innovative firms. It focuses on a broad group of strategies — in marketing, finance, production, management, and human resources and asks whether there are key areas in which the strategies being followed by more- and less-innovative firms differ. It also investigates how the activities of firms in each of these areas differ. Finally, it compares the performance of more- and less-innovative firms. The study finds that more-innovative firms place a greater emphasis on management, human resources, marketing, financing, government programs and services, and production efficiencies - each of these areas is important. Finally, more-innovative firms are more successful than less-innovative firms.
Article
Using recent data from the National Longitudinal Survey of Youth, this study examines the predictions of the human capital model concerning the relationship between training, starting wages, and wage growth. As implied by the model, training, particularly employer-financed training, is positively related to wage growth. Company-financed training also appears to be portable across jobs or to have a general component. In addition, there is some evidence that workers pay for initial training through a reduced starting wage. The results provide partial support for the human capital model.
Article
Using data from the Employer Opportunity Pilot Project (EOPP) survey and the National Longitudinal Survey of Youth (NLSY), we explicitly document the specificity and generality of employer-provided training, and we analyze how wage growth and mobility are influenced by our direct measures of specific and general training. In spite of the emphasis that labor economists have placed on specific training, we find that employers in the EOPP and workers in the NLSY indicate that most of the skills learned in training are useful elsewhere. Our results are consistent with several recent models that predict that employers will often extract some of the returns to the general training they provide.
Article
This paper examines the issue of the establishment size-wage effect. It analyzes a cross-section for the year 1979, with information on 607 individuals and the 60 private sector establishments where they work. It discusses four theories of the establishment size-wage effect and uses empirical proxies to test them. It shows that when a dummy variable on computer access in the establishment is introduced as a regressor, the establishment size variable is an insignificant regressor. This result and other evidence supports the contention that the establishment size coefficient captures the effect of unobserved human capital accumulation.
Article
As a consequence of the rapid growth of temporary agency employment in Germany, the debate on the remuneration of temporary agency workers has intensified recently. The study finds that the earnings gap of temporary help workers in Germany is indeed large and increased during the past decade. Decomposition reveals that the widening gap mainly is driven by changes in relative skill prices and less by differences in the workforce composition. Temps already have to accept a marked earnings decline before entering the temporary help sector. Nevertheless, after leaving the sector temporary help workers no longer have to accept a pay penalty. A recent reform set a high incentive for temporary help agencies to pay their workers according to a collective agreement. Surprisingly, the unionization of the sector could not bring thewidening earnings gap to a halt.
Article
Data from the National Longitudinal Survey of Youth indicate that the employer often pays the explicit costs of not only on-site training but also off-site general training. Although few of these costs appear to be passed on to workers in the form of a lower wage while in training, completed spells of general training paid for by previous employers have a larger wage effect than completed spells of general training paid for by the current employer. A model where contract enforcement considerations cause employers to share the costs and returns to purely general training can explain these findings. Copyright 1998 by University of Chicago Press.
Article
This article compares various measures of on-the-job training, from a new source that matches establishments and workers, allowing the authors to compare the responses of employers and employees to identical training questions. Establishments report 25 percent more hours of training than do workers, although workers and establishments report similar incidence rates of training. Both establishment and worker measures agree that there is much more informal training than formal training. Further, informal training is measured about as accurately as formal training. Finally, the authors show that measurement error reduces substantially the observed effect of training, in particular the effect of training on productivity growth. Copyright 1997 by University of Chicago Press.
Article
As a consequence of the rapid growth of temporary agency employment in Germany, the debate on the remuneration of temporary agency workers has intensified recently. The study finds that the earnings gap of temporary help workers in Germany is indeed large and increased during the past decade. Decomposition reveals that the widening gap mainly is driven by changes in relative skill prices and less by differences in the workforce composition. Temps already have to accept a marked earnings decline before entering the temporary help sector. Nevertheless, after leaving the sector temporary help workers no longer have to accept a pay penalty. A recent reform set a high incentive for temporary help agencies to pay their workers according to a collective agreement. Surprisingly, the unionization of the sector could not bring thewidening earnings gap to a halt.
Article
Using Swedish micro data, this paper examines the determinants of the incidence of, and the amount of, job-related training. The analysis is performed by estimating probit, count data and hurdle models with a set of explanatory variables chosen on a theoretical basis. The results show that the determinants of the probability of receiving training and the determinants of the amount of training not are the same. JEL classification: C25, I21, J24 Acknowledgements: I have benefited from comments made on different versions of this paper by Mahmood Arai, Lena Granqvist, Maria Melkersson, Mikael Nordberg, Håkan Formal on-the-job training plays an important role in improving the skills of those in the labour force. According to Statistics Sweden, who investigate the size of employer-provided training, slightly less than 3 per cent of the GDP is used for training employees and
Article
In this empirical paper, I use the 1996 wave of the ECHP dataset to investigate the relationship between measures of wage compression and training incidence in 11 European countries. After controlling for individual factors and country specific institutional differences, I find evidence of a positive and significant relationship between wage compression and training, both firm-specific and general. While the finding for firm-specific training is consistent with both competitive and non-competitive approaches, the result for general training is only consistent with the non-competitive approach.
Article
Using worker–firm matched data, we study the incidence and the effects of firm-provided training in France. When we use the same kinds of data and models as the existing ones, the estimated impact of training on wages is as high in France as in other countries. When we build on the uniqueness of our French data and control for the selectivity of firms' training practices, the estimated impact of training falls close to zero. The wage differentials observed across trained and untrained workers reflect that individuals who are the most likely to be placed in training programs are also those with the highest unmeasured abilities.
Article
In this paper, the authors survey noncompetitive theories of training. With competitive labor markets, firms never pay for investments in general training, whereas when labor markets are imperfect, firm-sponsored training arises as an equilibrium phenomenon. The authors discuss a variety of evidence that supports the predictions of noncompetitive theories and they draw some tentative policy conclusions from these models.
Article
We investigate two dimensions of investment in general human capital on-the-job: the number of workers trained and the intensity of training for each worker. In the benchmark case, we consider wage and training decisions made by firms in an imperfectly competitive labour market. The benchmark case generates two types of market failure: too few workers are trained, and the workers who are hired receive too little training. This is caused by the firms' discount rate exceeding the social discount rate, due to a 'quitting externality'. We show that the presence of labour unions can increase social welfare by increasing training intensity, while reducing welfare by lowering the number of workers trained. Using the British Household Panel Survey, we confirm the predictions of the model.
Article
We investigate the impact of different types of training on the mobility expectations of workers, using three surveys. Most training episodes produce some transferable skills, and most transferable training is paid for by employers. Overall, training has no impact on mobility in three out of every five cases; the remaining cases are split equally between those where training increases and those where it decreases mobility. We find that training is more likely to lead to lower mobility when it is less transferable to other firms, is sponsored by firms, and where its objectives include increasing the identification of employees with corporate objectives. Copyright Blackwell Publishers Ltd/London School of Economics 2000.
Why do temporary help firms provide free general skills training?”
  • D H Autor
Human capital investments and firm performance”, working paper
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  • D Mcmurrer
Training, mobility and regulation of the wage relationship: specific and transversal forms
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State of the Industry: ASTD's Annual Review of Trends in Employer-provided Training in the United States
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