Benefits of Employee Training for the Companies - Essay Example

In today’s competitive environment firms have to be in top shape operating with the latest technology and the most skilled human resource. Firms haveto invest heavily in their human resource to be able to stay competitive. It is absolutely essential to have well trained and developed employees for maximization of profit and minimizing costs. For this firms have to have training and development programs for their employees on a regular basis. Such trainings keep the employees updated and knowledgeable about the current industrial development and at the same time widen their horizons polishing their decision making and problem solving capabilities. According to Wright & McMahanG (1992), such trainings also motivate and satisfy the employees and encourage them to be more loyal to the firm. Training of the kind also helps develop external with customers, suppliers and distributors etc and internal relations with team members. Thus the overall effect is that the employees work more efficiently than ever increasing the firm’s profit margins. Firms that do not consider training programs to be an essential part of their functioning suffer in the long run as they cannot operate at maximum efficiency which results in losses and higher employee turnover rate. According to Barney, J (1991, pp 99-120), this is because the employees are not satisfied in their jobs, there is communication gap between the management and other employees and the employees cannot handle sophisticated technology. Thus training and development have now become one of the reasons that could make or break a firm (Heathfield, S, 2006). Training and development of employees plays a key role in the success of the company. The technological development taking place globally has to be incorporated in companies so that they can make their production more productive and efficiency. Technological updates also enable the firm to compete with the local and global competitors and play a vital role in the survival of the company. According to Barney, J (1991, pp 99-120), in order to incorporate such technology firms have to have the right kind of labor and employees who have the ability to operate such technology. Thus it becomes eminent to continuously update the skills of the employees with their training and development. As per Mishra, J and Morrisey M.A (1990), without such updates the firm would not be able to incorporate technology in its system and thus would not be able to sustain competition. Training and development of the employees is important also because it helps the firm achieve its goals. The training and development of the employees enable them to maximize their potential and perform their best. Thus they are able to achieve their personal goals as well as the organizational goals. Thus when the employees are performing at their best they are working towards achieving the goals of the firm to the best of their ability and in turn the firm’s goals are achieved in the best way possible. According to Dymock, D and McCarthy, C (2006), the training and development of the employees becomes essential for a firm in order to achieve its goals. Those firms who do not concentrate on the training and development of their employees would have unsatisfied employees as the employees would not be able to perform at their best. In turn they will also not be able to achieve the firm’s goals and objectives and the firm would eventually have losses (Heathfield, S, 2006). The skills of the employees have to be continuously updated at all levels so that the firm can operate at its best at every level. From the managerial to the tactical level, the skills have to be polished and refined continuously with training and development. This enables the employees to grow and develop as individuals and helps in bringing out the skills of the workers. As per Dymock, D and McCarthy, C (2006), by attaining new knowledge and ways of working the employees have a broadened horizon and personally they develop as individuals. This development helps the firms as the employees can think better and have more knowledge and can greatly help in innovation etc. those firms whose employees do not experience growth at a personal level continue to work in the same manner as they had always been and thus they are slow in progress and inventiveness (Barney, J1991, pp 99-120). With the personal growth of every individual in the organization, the overall effect is tremendous and beneficial for the firm as a whole. As per Mishra, J and Morrisey M.A (1990), the entire human resource of the firm experiences growth and development at the same time and the result is that the whole human resource steps up and is upgraded at the same time which results in internal growth for the organization in all directions. Since the whole human resource has experienced development at the same time, they are better able to work in conjunction and coordination. Some firms believe in training of a few select employees only (Barney, J1991, pp 99-120). This is not as beneficial for the firm and results in only a few departments and employees progressing creating gaps in the development of both departments and human resource. Also, with training and development, the employees can work better together as all of them experience growth and development at the same time. They can all understand each other’s jargon which results in better understanding between individuals and more importantly between teams and within the teams as well(Heathfield, S , 2006). According to Wright & McMahanG (1992), there is team spirit and team work in such an environment. With coordinated teams of course the firm will be more efficient and productive. Work will be done faster and more efficiently saving resources and cutting costs thereby enabling the firm to compete with the competition. Where there is a lack of coordination between the teams, the firm will be more involved in internal competition and employees competing in an unhealthy manner at a personal level giving little room for the development of the firm itself (Barney, J1991, pp 99-120). Training and development shows the employees how the firm cares about its employees. The work environment today requires a lot of stressful work and it is very demanding in terms of time. According Dymock, D and McCarthy, C (2006), the employees are stressed and overworked and do not have time for family and don’t relax a lot. Firms that offer training and development show the employees that they care for the employees and the employees like staying with such firms and prospective employees try to find jobs in such firms. Thus it turns out positively for the firm itself. With the training and development of employees, the employees realize the importance of new knowledge and new learning and how beneficial it is for them and their performance. As per Mishra, J and Morrisey M.A (1990), training and development instill in them a passion to learn more and to attain more training and development. Thus they work harder and do not want to be left behind where knowledge and training is concerned. In firms where emphasis is not on training, the employees are happy doing their mundane jobs and have no interest in gaining knowledge and training which retards the growth of the firm itself. Those employees from such firms who have the desire to grow but their firms do not provide an opportunity for growth eventually quit their jobs for better opportunities. Thus the firm loses its better employees (Heathfield, S, 2006). When there is training and development, the employees become further specialized in their work and their specific fields and with continued training they almost become unique where their skills are concerned. This could also be a competitive edge for the firm as such specialization can only come from continued training and development in the particular area of expertise. Also, with training and development leaders emerge and are recognized (Phipps, P, 1996). The managerial level also improves and management as a whole develops leading to a better managed organization. Leadership skills are polished and the employees become more motivated to work. The employees become more dedicated and with this there is a bond with the firm that develops and thus the employees become dedicated to their job and become loyal to the firm. Thus there is loyalty and the turnover rate is lower. The employees do not think of switching jobs and the firm gains this way. Those firms whose turnover rate is low suffer from the additional cost of rehiring and wastage of time (Calvacca, L, 1999). The culture of an organization plays a vital role in the progress of any firm. How the employees interact with each other and how they treat one another decides how they would communicate with each other and thus how they play out as team members. If teams are strong then the firms progress better and faster. Thus the organizational culture plays an eminent role in the progress of the firm. As per Wright & McMahanG (1992), training and development helps in developing the employees at an individual level and improves teamwork. Thus with such development, the organizational culture also reforms and improve giving way to advancements and change in the environment making it healthier and better to work in/ when the environment is friendly and employees are comfortable working in it, they give better results giving better performances and thus enabling the firm to reach its goals. As per Mishra, J and Morrisey M.A (1990), when the organizational culture is not encouraging, the employees cannot perform at their best which gives rise to problems and dissatisfaction among the employees and thus the firm cannot perform at its best. With organizational culture, the organizational climate also improves when there is training and development of the employees in a firm. There is a positive feel about the organization, especially from the leaders, subordinates and peers. This inculcates a feeling of enthusiasm and the employees are motivated to work better in such an environment. There is an overall sense and willingness to do better and verve to excel with development and growth. Such willingness to work within the employees helps the organization positively as the organizational goals are achieved much faster and in the most efficient manner (Calvacca, L, 1999). There is a healthy work environment where there is a positive bonding between the employees due to training and development. There is a good employee relation at the work and personal level which enables them to work better as team members and subordinates. As per Mishra, J and Morrisey M.A (1990), such environment and relations strengthen the employee bond and encourage a positive way of working. Training and development helps in creating a better corporate image for the firm. Firms that have training and development have more scope for growth and prospective employees like to attain jobs in such firms and the result is that the firm ends up getting the best employees(Stark, B , 2003, pp.10-18). Also, in the industry the organization which offers training is looked up upon and is observed as a progressive and developing firm. It is also viewed as a progressing and prospering firm and thus the investors do not hesitate in investing and working partners like healthy relations with the firm (Calvacca, L, 1999). Another reason for encouraging training and development is that when the employees are trained and developed, they work at their best and at their maximum capacity. They are satisfied in their job, they like the work environment and can work in teams thus the overall environment is healthy and helps the employees prosper and achieve their individual goals. This in turn enables the firm to achieve its goals (Stark, B, 2003, pp.10-18). Thus when the firm achieves its goals there is bound to be efficiency and increased profitability and minimum chances of losses. Also, with training and development the organization works at its best. This is because the individuals are developed and are trained to handle problem situations also. Thus crisis situations are handled better (Judge, T and Bono, 2000, pp. 751-765). The employees are trained and can work in teams therefore decision making is quicker and easier. The individuals also have been developed to make important critical decisions swiftly and can solve problems more easily. Also, when the employees are trained, they understand the organizational policies and can follow them better. Thus the environment is less chaotic and more systematic (Stark, B, 2003, pp.10-18). When there is training and development in the employees, relations with associates outside the organization also improve. These include the relations with suppliers, distributors, and most importantly with customers (Stark, B, 2003, pp.10-18). For example McDonalds trains its employees how to interact with its customers and because of such training the customers become loyal as they get accustomed to being treated in a special way. Interaction with suppliers and distributors is also essential as they may cut down on costs if the relations are good. Without good relations with anyone of them would result in losing of customers and in the case of suppliers and distributors additions in costs (Judge, T and Bono, 2000, pp. 751-765). Also, the environment is becoming increasingly competitive and thus a firm has to cut its costs in any way it can in order to face the competition that is coming from globalization and international companies. In order to face them firms also have to downsize and cut down on managerial levels. In order to do that, the employees who remain have to have the skills and knowledge to replace those who have been fired. Thus in order to make these employees do that and to carry out downsizing training and development of the existing employees becomes essential (Judge, T and Bono, 2000, pp. 751-765). Thus firms who need to carry out downsizing have to have efficient training and development programs. Those firms who do not have them face the cost of additional employees which only add to the costs (Calvacca, L, 1999). Conclusion Training and development have become extremely important for the survival of organizations today. The environment has become very competitive and thus the employees have to be trained and developed so that their skills are polished and they become more proficient at their work (Judge, T and Bono, 2000, pp. 751-765). Training and development of employees help the firm operate more efficiently and effectively as the employees work with more dedication and motivation. Also there is better team work and coordination which enables faster executions. Those firms lag behind who do not have regular training sand development of their employees. Their employees are less skilled and cannot operate at full capacity as they are not satisfied with their job environment and their job definition. Thus in today’s world, if a firm wants to survive in the industry it has to continuously update the skills of their employees with regular training and development. References Barney, J 1991, ‘Firm Resources and Sustained Competitive Advantage’, Journal of Management, vol.17, no. 1, pp. 99-120 Calvacca, L (1999), The value of employee training. Folio: The Magazine for Magazine Management. Accessed on 6 June 2008. Available: http://findarticles.com/p/articles/mi_m3065/is_1_28/ai_53557481 Dymock, D and McCarthy, C (2006), ‘Towards a learning organization? Employee perceptions’, The Learning Organization, vol.13 no.5, pp. 525-537. Heathfield, S (2006), ‘Employee empowerment’, Human Resources: About, Inc. Accessed: 7 June 2008. Available: http://humanresources.about.com/od/glossarye/a/empowerment_def.htm Judge, T. A. and Bono, J. E (2000) ‘Five-factor model of personality and transformational leadership’, Journal of Applied Psychology, vol. 85 no.5,pp. 751-765. Mishra, J and Morrisey M.A (1990), ‘Trust in employee/employer relationships: A survey of West Michigan managers’, Public Personnel Management, vol.19 no.4, pp. 443-461. Phipps, P. (1996). Investment in employee training - Workplace Performance. Monthly Labor Review. Stark, B (2003), ‘How to Involve Others in Decision Making; Trust is the Key’, The Receivables Report, p10-18. Wright, P & McMahan, G (1992), ‘Theoretical perspectives for strategic human resource management’ Journal of Management. Accessed 6 June 2008. Available: http://findarticles.com/p/articles/mi_m4256/is_n2_v18/ai_12720961 Read More