Managing the Performance through Training and Development - Case Study Example

Financial Benefits of Employee Training and Development Introduction Employee training and development is vital for the success of an organization (Saks, Robert and Jack 42). Global trends in the human resource departments have highlighted the need for professionalism in employee activities. The development has negative and positive impacts on the employee, organization, and external environments. However, the benefits of employee training outdo the demerits of development. Thesis statement: Organization success depends on the financial benefits that the firm accrues due to employee training and development. Reduced Employee Turnover Employee turnover is the rate that employees tend to stay or leave an organization. Primarily, it depends on employee loose or gain. Firms tend to reduce the labor turnover to the perseverance with the developing competition in the labor market (Saks, Robert and Jack 42). Additionally, the turnover also affects the profit maximization tendencies in the organization. The labor turnover can be reduced by ensuring employee stability and decreasing the entry and exit of employees. Training and development of the employees decreases the labor turnover rates. It will make sure that human resource department has a constant rate of hiring and firing. Training the employees will reduce the chances of firing since they will be competent in their jobs. Additionally, the development process will prevent employee productivity. Investing in the present employees will cause the firm to reduce the turnover. It will include hiring professionals who ensure perfection in their work. As a result, providing practical and theoretical training to professionals is advantageous to the firm in terms of cost and employee comprehension levels. For example, when an organization hires professional, the knowledge provided to them during training will be used to firm's advantage. The vetting processes should be strict to ensure the division of labor. Additionally, the specialization helps in the training processes because experts can be hired based on the various divisions of labor (Saks, Robert and Jack 51). Training and development will ensure the employees are coached and equipped with current market trends. The employees can socialize and form groups at the workplace; hence, increasing the productivity and reducing labor turnover. Training emphasizes on extra skills in specific job descriptions. The expertise, on the other hand, will increase self-confidence in the employees helping them in handling the allocated roles. As a result, the human resource department will be satisfied with the current labor and eliminate cases of employee exits that may cause a firm extra resource. Development will have an impact on the professionalism of activities and roles in the organization. It can be used as a competition strategy where the employees have to comprehend their job descriptions before being hired. Development in employee culture will also ensure the use of interviews and orientations to expose new employees to the firm's activities. A superior employee culture results into a good employee and interpersonal relationships that are factors of reducing labor turnover rates in an organization. The cultures will also facilitate teamwork in groups formed by the employees. In the long term, workers feel satisfied with their job positions and salaries. Satisfaction will prevent employees from exiting the firm and causing high turnover rates. Increased Productivity Productivity levels in an organization depend on the level of training and development (Pride, Robert and Jack 260). Only strategized training techniques will cause an increment in the output of the employees. Research shows that training should follow the right procedures to ensure skill accumulation in the workers. Without proper procedures, a firm may waste its resources in providing training and coaching sessions to its employees without increasing its productivity. Primarily, the training process depends on various determinants such as employee culture, nature of business and the corporate structure. The following aspects of training and development cause increased productivity: A positive change in employee culture The training processes makes the employees feel appreciated by the company; hence, increasing the level of interest in the development and training processes. For example, an employee may find it easy to train in a firm where his/her decisions are respected than in the workplace where respect is not observed. Employee cultures consist of beliefs that depend on the management and human resource departments. The cultures affect the productivity levels depending on the level of reliability in the company. Training, on the other hand, will assist the workers to use their cultures to instill positive changes on the production of the company. The cultures, however, can be disadvantageous to the management in cases where the employees are not motivated leading to laziness and lack of efficiency. The training sessions provide workers with expertise and applications of the present culture to increase the level of production. Training and development strategies will also change a firm’s reputation making it a great workplace for potential workers (Pride, Robert and Jack 263). It will also increase loyalty levels among the current employees preventing cases of betrayal. The reputation will increase productivity since hiring will be from professionals. Additionally, the current employees will be afraid to deteriorate the reputation and culture of the firm; hence, use the provided skills to advance their production levels. Provides professional development and skill enhancement The training and coaching sessions will provide advanced knowledge to the employees on their areas of operation. However, employee development will depend on the division of labor in an organization. Specialized departments will aid the trainers to provide specific information in their areas of expertise. The employees are provided with ways to handle customers and increase their outputs within the allocated time. Perfect customer handling procedure from skilled employees will ensure satisfaction and an increase in sales. Various training methods can be used to enhance employee skills, but depend on the levels of employee acceptance. For example, providing training to non-willing employees will not change their ways of operation. The skill enhancements lead to knowledgeable workers and ensure interchangeability of workers in the departments. Workers can be trained on ideas to cater for co-workers in the case of a health complication. This strategy will increase productivity in the firm by making the workers all-rounded. Constant monitoring is required after the training processes to observe changes in production levels. This strategy will assist in providing the management with knowledge on areas that require more training. It may also indicate changes in the training that would lead to increased production. Increased efficiency A firm’s efficiency levels depend on various determinants such as expertise, time, and technological advancements (Wilson 47). Employee training will familiarize them with the current job descriptions and the workplace. It may provide faster ways to perform the allocated jobs and have extra time to work on problems facing the departments. Time saving The training will assist employees to comprehend the management and corporate structures leading to efficiency in their operations (Cahuc and Stei 136). For example, employee development will enlighten them on departmental leaderships that will prevent time wastage while relaying information to departments in higher ranks. Additionally, training advances leadership skills in the employees. The head of departments can make rational decisions in cases affecting the employee productivity. The training also promotes boss-employee relationship skills that come in handy while relaying of data from different departments. The leaders are taught the right approaches that will help strengthen bonds between the employees. The approaches help in job efficiency reducing the number of errors that cause a decrease in productivity. Technology handling In the current employee environments, technology has been adopted to increase efficiency. However, some employees do not have knowledge on operation modes of the present technology. A firm may invest in new technologies, but the employees lack expertise to handle the machinery (Wilson 73). Training and development ensures that workers are up-to-date with the latest technologies by providing information on how to operate them. Organizations will incur costs if they decide to hire new employees to handle the technology (Wilson 115). Since the main aim is profit maximization, the management hires trainers to provide theoretical and practical information to the employees. The strategy will save costs, time and at the same time increase levels of efficiency in the firms. Setting achievable goals, embracing feedback and adoption of open communication standards The training sessions will provide employees with knowledge to make realizable goals and objectives. It will increase efficiency and reduce time wasted to cater for errors. The employee objectives should be based on the organizational objectives to ensure all are attained at the same time. Open communication standards will make sure that employees are constantly updated on changes made in the firm. The levels will also facilitate feedback from customers that entail levels of satisfaction. Training of the public relations department will assist the firm to bond with customers and other external environments. Customer feedbacks will lead to efficiency in operations because the employees will have specific issued to attend to in their line of duty. Decreased Need for Supervision Training enhances individual and group performance in an organization. It stipulates individual and group roles to the employees, a strategy that reduces the need for supervision. Supervision includes the monitoring, issuing orders and coaching of subordinates at the workplace (Cahuc and Stei 134). It may lead to inefficiency and time wastage in cases where employees are not self-centered and rely on external forces for operations. Enhanced proficiency and motivation The workers are provided with relationship approaches that help in the supervision processes. In most cases, organizations offer employees with training in there are of specification and relating fields. For example, a junior staff is trained on his/her roles and the expectations from the senior staff. Such knowledge is important in the supervision processes because the junior staff will already have what is expected of them during their working period. The workers will ensure they have attained their objectives and those of their bosses; hence, causing minimal supervision. Additionally, some training approaches mentally prepare employees for higher ranks in case of promotions. Employees in a specific department are provided knowledge on the techniques of leadership and supervision from their superiors in case one of them is appointed as acting supervisor. Motivation is caused by self-confidence adopted during the training process. The workers are inspired by the skills they acquire leading to the proper application at the workplace. Accuracy and efficiency in the work allocated to the worker reduces the need for supervision since the superiors are aware of the high productivity and competent levels. Employee training and development cause integration of roles. Efficiency leads to specialization and division of labor that increases productivity. Additionally, it also improves employee competence; hence, minimal need for supervision and monitoring from the employees. Conclusion Employee training and development has multiple benefits to the organization. However, most of the merits lead to financial benefits for the firm in the end. Technological, employee and customer trends require the training incentives so that an organization can keep up with the market competition. Training and development reflect profit maximization and an increase in the market share. Works Cited Cahuc, Pierre, and Steiphane Carcillo. Labor economics. 2. ed. Cambridge, Mass. [u.a.: MIT Press, 2014. Print. Pride, William, Robert Hughes, and Jack Kapoor. Business. Stamford: Business, 2013. Print. Saks, Alan M., Robert R. Haccoun, and Monica Belcourt. Managing the performance through training and development. 5th ed. Toronto: Nelson Education, 2010. Print. Wilson, John P. Human resource development learning & training for individuals & organizations. 2nd ed. London: Kogan Page, 2005. Print. Read More