The Impact of Training and Development of an Organization during the Times of Economic Fluctuation - Literature review Example

? THE IMPACT OF TRAINING AND DEVELOPMENT OF AN ORGANIZATION DURING THE TIMES OF ECONOMIC FLUCTUATION THE IMPACT OF TRAINING AND DEVELOPMENT OF AN ORGANIZATION DURING THE TIMES OF ECONOMIC FLUCTUATION By now, it is common knowledge that the global economy often fluctuates. The most worrying aspect of the fluctuation is that it is unpredictable and can bring about either a slump or an increase to the economy. For this reason therefore, it is important for businesses to come up with survival mechanisms that can rescue them especially when the economy deteriorates (Whalen 2011, 216). One of the systems through which businesses always survive when the economy is on the descent is training its workforce. This paper, seeks to evaluate the consequences brought about by training the workforce (Sams 2009, 497). It seeks to analyze if investing in training makes the various businesses make a large profit out of the prevailing economic situations. During economic turbulence, employee training comes at the back seat by several businesses. This is with the aim of reducing the expenses (King 2007, 38). However, some organizations normally continue employing training even under tougher times. Some of the ways through which businesses can go about training during tough times include, reducing the duration, which the training course was to take, and practicing internal training. Technology also comes in handy during such situations as some organizations encourage e learning (Watanabe 2010, 56). If the research carried out in the United Kingdom during the 2008-2009 economic slumps is anything to go by, then training might just be the perfect antidote for such times. The research found out that those businesses that focused on training managed to get back on their feet soon after the downfall. This is because training prepared the employees and the organization at large to be well prepared for the slump and they found a way of maneuvering through it (Jacobs 2003, 59). Similarly, the general classification of training as a tactic for endurance helped the organizations get back to their feet. Supplementary to that, training had an overall impact of reducing costs. This is because training boosts the attitude of the employees and due to the assurance, they carried out their duties as required and in the process avoiding damages. Studies showed that adequate training enabled the organizations survive in case such downfalls took place in the future (Adegoke 2013, 25). By this, it means that the employees shall become much proficient in whatever they do. This phenomenon is of great significance mainly because the employees will be able to venture into new methodologies and technologies (Lawson 2002, 96). The new methodologies by all standards shall enable the businesses to register extraordinary profits. Training of employees plays a major role towards increasing the morale of employees. The fact that the employer invests in the employees and the reason that the employer will be after their well-being, makes the staff-members give their best for the company (Wisconsin 2009, 119). Moreover, research has established that training of employees during tough times does make them not to worry about job security. Similarly, the employees become more satisfied and they feel much appreciated and valued by the employers. The overall effect of this will be to increase overall productivity of the business due to increase in the level of commitment (Hawthorne 2007, 92). Research has also established that training employees during economic turbulence helps in broadening their career network in that, they shall meet other professionals who will inspire their success in their respective fields (Russell 2007, 46). One can achieve this through organization of seminars and attending of various conferences. In addition, the conferences act as information sources because they provide up to date information in the specific field that the employers are pursuing (Buckley 2009, 85). In a similar situation, frequent training enables the firms to identify specific skills harbored by their staff members, this will enable the supervisors have a deeper understanding of their employees and know how to pair them in case teamwork arises. In addition, it will provide a systematic approach towards succession (Wetland 2007, 88). The skeptic people may argue that providing your employees with the required skills is quite tricky, majorly because an employee can quit after receiving training in order to work for a different firm. The aspect of employee training has received back up from various theories. One such theory is the Becker theory. While reaffirming his support for employee training, Garry Becker asserts that there are two forms of training skills. The first is as general skills while the second is specific skills. Becker argues that employers should see into it that their employees are equipped with the specific skills. This is because they enable the employee performing to his best thereby making the employee output to be more efficient. With regard to general training, Becker suggests that they come in handy with the specific skills. He further asserted that employees should feel obliged to go for general training at their own expense to survive in the competitive millennium (Becker 2007, 162). Research has indeed proved that training of employees comes with massive benefits to the firm. It is beyond doubt that the positive effects of training outweigh the negative effects. That is why it worthwhile for businesses to employ training during economic fluctuations (Asthwappa 2009, 52). One thing that needs clarification though is the aspect of how to finance the training. Ordinarily, it is imperative that the employers offset the cost of trainings. The situation can however, get tricky when it comes to the fact that employees who have gone through training are always well paid compared to those who do not acquire the training. It is for this reason that Garry Becker suggests that, on a number of occasions the employees should be obliged to go for training at their own expense. The survey carried out by National Longitudinal Survey of the youth, which found out that the salaries of the employees who went for training was much higher than the salaries of those who did not go for training, supports the idea above (Becker 2007, 163). Over and above, it is of importance for the businesses to be on the lookout and subject their staff to the trainings based on the prevailing economic situations. At the same time, perseverance is important because the effects of training may not be that sudden, but are likely to occur over a long duration of time (Wetland 2007, 58). On the same note, the employers should opt for the cheaper mechanisms of training like e learning as this is much faster and enables them to compare how their competitors are faring in the market. Those who make policies should put in place uniform mechanisms that will be able to embrace the all the employees. Such policies make them work as a team and make them achieve a common goal (Saks 2010, 86). 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