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In the modern world of business, learned human resource is considered as a key of success for organizations. Bersin (2013) suggests that in today’s scenario, attracting talent and retaining them is now become a challenge for the organizations as global economic growth pointed towards the scarcity of a skilled workforce. Skill development via training is vital for gaining the advantage of efficient workforce.
Training in monetary terms can be defined as investing in people to make them able to achieve strategic objectives of the organization (Bond & McCracken, 2005). Investment in training is considered highly profitable for the organizations in terms of getting skilled workforce for organization’s well-being in terms of delivery and terms of competitiveness (Salas et al., 2012). Despite having knowledge of the beneficial outcomes of good training, most of the organizations and managements are reluctant to invest in training (Salas et al., 2012). The essay is devised to explore and critically analyze the positive and negative outcomes of training for the organizations and the reasons of reluctance to invest in training.
Training, if well-designed and well-executed, develop the skills of the workforce that returns the organization profitability (Jones, 2004). To understand the importance of training it is necessary
In addition, training is beneficial for both organization and individuals (Storey, 2007). Human capital theory suggests that investment on individual training returns in higher productivity (Becker, 2009). The concept of human capital theory is elaborated by Stevens (1999) by adding that investment in training returns in higher income and employment opportunities for an individual. From the perspective of the organization, Becker’s view suggested, investment in training Human resource returns the organizations in terms of higher productivity (Sweetland, 1996). While Gardener has given the view of multiple dimensions of an individual to learn and perform and suggested that unskilled dimensions remained wasted until unless companied by good training (Sweetland, 1996).
Recognizing the importance of training and development for both individual and organizations’ perspective, it is evident that training plays a vital role in the career goals of the individual and also a strategic goal of the organization (Felstead et al., 2007). Investment in training, if directed in the right way, can lead towards measurable profit returns (Heyes & Stuart, 1996). For instance, employees can negotiate for more rewards because of the skills they possess due to a particular training.
Development is important for the career growth of the employee and development allows the employees to gain new skills, knowledge and learn new techniques and tactics of doing work (Storey, 2007). Training is highly critical in developing the skills of the employees. Training
helps employees to learn and develop new skills. Therefore, development of skills and training are linked and go hand in hand (Tannenbaum, & Yukl, 1992). Training is helpful in making the employee learn new things and develop new skills. Therefore, training is important as it develops the skills and makes the person more competent. It is important that the training should be more job-orientated or on lessons that can help the employee in his job so that it develops the skills in the employee that will help in increasing the productivity (Baum, 2002).
Organizations can benefit out of skilled employees in many ways; multi-skilled workers reduce the costs of outsourcing of the organizations (Garavan et al., 2001). Training in such a challenging environment of technology also helps organizations in adapting and reacting efficiently to the changes happening all around the business. This happens because of skilled, motivated and empowered workforce who is well-trained to respond in a certain manner that favors organizational strategic objectives profitably (Horwitz, 1999). Training also aids developing a winning culture in organizations by means of providing practices to develop and enforce a culture via learning (Watad and Ospina, 1999).
Globe is evident that well-trained individuals and organizations get exemplary success of their goals, and their investment returned back in form of huge profits in many aspects including monetary rewards (Garavan et al., 2001). Thompson, Warhurst, & Callaghan (2001) suggest that training employees allow organization to maximize the returns. Bersin (2013) forecasted that it is necessary for organizations to develop skills of the workforce and direct them toward career development to get the advantage of workforce.
Many of the successful organizations are the early recipients of the concept of training and now excelling in the business they are concerned with by utilizing skilled workforce. However having
great knowledge about importance of training, some organizations either fail to adapt the concept of training or reluctant to invest. The reason may be that there are numerous theories and evidence of training-based improved performance but not measurable proofs of successful monetary returns (Bersin, 2013).
According to Rowe (1996) organizations find it difficult to achieve projected goals by training. However, the concept of Rowe seems obsolete as most of the giants in any field are employing training and getting measurable benefits out of it. Marrow (2001), then, gave the reason that tangible outcomes that managers accept via training does not appear soon. Another reason may be the costs, and expenditures of the training are high and management have other options to invest profitably (Marrow, 2001). These factors make the organization reluctant in offering training to the employees and in developing their skills. Moreover, organizations do not highly believe in the outcome of the training and therefore, are not highly willing to make investment on these trainings. The other factor that restricts the organization in training is that organizations are not sure whether the employee will further stay after the training and these factors raise question marks about the training and development and limits the organization (Marrow, 2001).
Other reasons include the degree of receptiveness towards training needs like time dedicated and expertise required to design and deliver cost-effective and measurable training in terms of developed skills (Marrow, 2001). Jameson (2000) said that to improve the skills of organization’s workforce; employees can be either trained or the company can recruit those who are already trained before. It is also evident that because of rapid technological innovations and fast behavioral changes, training become obsolete soon and leads to wastage of resources (Jameson, 2000). Further, higher turnover rates discourage management to invest more in building skilled workforce for competitors (Bratton and Gold, 2007).
Strategic management found reluctant to invest in collective trainings because of individual’s perception and adaptability of training. The grounds for the reluctance are that most of the individuals find its wastage of time and feel their selves learned show lack of interest during training (Bratton and Gold, 2007). This attitude of employees towards training widens the gaps of calculated performance after training (Uduji, 2013). Further, technology is continuously advancing machinery and procedures and managements are more spending into installing equipment instead of seeking skilled workers (Uduji, 2013).
One of the main reasons of managements to avoid training is that mostly the planning of training fails to develop highly effective program that lead to disasters. Strategists of the organization fail to define the actual purpose and need of training that lead to failures of training programs. Secondly, ineffective communication leads unaware workforce about the need of training also ruins the investments in trainings. These circumstances often discourage managers to invest in training programs (Beardwell and Claydon, 2007). Cultural practices disruption in many cases by new training is also a reason
for managers to avoid trainings while managers believe in informal trainings, to make workforce learned about organizational culture (Bach, 2005).
Although, accepting the importance of empowerment and individual capabilities of multi-tasking for better organization’s performance in dynamic environments, manager show reluctance towards developing training programs for any particular skill. Particularly leaders and managers more believed in informal trainings where they feel uncomfortable to transfer the value by a formal training program and think of wastage of resources (Storey, 2007). Whereas employees when come to be trained for a skill that is out of their major qualification and area of working, threaten to lose their professional identity (Storey, 2007).
Most of the times, a clash is seen in between employees and management about training; where employees are willing to get proper training, but management considers workforce as already an investment to achieve goals and do not want to invest more in that workforce (Salas et al., 2012).
While having all the concerns, the importance of training and development is vital for increasing organization’s performances. Salas et al. (2012) developed a study and explored that training works with the way it is designed and delivered. Many of the reasons discussed above about the reluctance can be related with the suggested fact. That proper design and measurable delivered goals of training are important to be considered while making investments in trainings. It is fruitful to invest in efficient training programs for the company, when training program can positively aid in maintaining or evolving beneficial culture, skilled workforce, improved end-product and value to the company (Arthur Jr et al., 2003).
It is to conclude that paper includes a wide range of developed theoretical aspects and major reasons why managements, as well as individual, avoid investing in training and skill
development. Although, importance of training is vital for improvement in performance of employees and organizations, people are reluctant because of high budgets and uncertainty of outcomes (Rubery and Grimshaw, 2003).
Despite all the uncertainty and issues, smart organizations are now keeping the high budgets for training during strategic planning and cautiously developing highly motivating efficient training programs. Further, to get most benefits out of designed program managements are efficiently communicating the importance of that programs for not only the purpose of organizations but also for the purpose of individual career growth. The perspective of these organizations is to gain competitive advantage of good human resource to compete in the highly dynamic current environment (Salas et al., 2012).
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