Importance Of Training And Development For Organizational Performance

Training and Development in Modern Business Environment

Discuss about the Analysis of Human Resource Management for Training Process.

The training and development based activities play an important role in performance of the organization and the employees. The training process thereby plays a significant role in the incorporation of various interests of the company. Training and development has gained much more importance in the changing business environment. The changes that have taken place in the external environment and various technologies that are used by the modern organizations have also affected the development and training based activities (Bell et al., 2017).

The process of workplace learning has taken a whole new shape in the modern business environment and technologies have offered chances to the employees to continue their learning process in the company. The advance technologies and the mobile devices have totally changed the ways by which the modern business organizations operate. The careers are not seen as functions of only the organization of which they are a part. The knowledge that is gained by them from the other organizations also play an important role in the advancement of the employees. The collaboration between the employees and the trainers in the organizations have been a major reason behind the successful operations (Brewster, 2017).

The essay will be based on the detailed analysis of the various processes by which the process of organizational learning and training affects the costs that are incurred by the modern companies. The training process thereby plays an important role in the operations of the organization and the ways by which the employees are provided the knowledge related to the entire work process.

The process of learning and development needs to be constant and should start from the first day of the employees on the job. The employees need to be provided with the right amount of training based on the ways by which they can work in the organization. The organizations in the modern business environment are aware of the power of training process. The training and development based process is given utmost importance in the modern era of business. The learning and development of the employees involves some costs that are based on the training that needs to be provided to them. The training and development based activities of the organizations help in the improvement of the performance of the employees (Dodson, Kitburi & Berge, 2015).

The capabilities of the employees are also enhanced in an effective manner with the help of proper training that is provided to them. The employees with high levels of job experience thereby perform better as compared to those who have less amount of job experience. The performance of the organization as a whole depends on the ways by which the employees are able to perform. The improvement of organizational performance is therefore possible only if the employees are trained in a proper way. The performance of the employees is able to improve the performance of the organization in the competitive business environment (Dysvik & Kuvaas, 2014). 

Benefits of Training and Development for Organizations

The performance of the employees is affected by some other major factors which include, the knowledge and the management, job satisfaction and the relationship of these factors with the training and performance. The performance of the employees is important for the performance of the organizations and training plays the most important role in increasing the efficiency of the employees. The training and development based activities are important for the improvement of the organization and its profitability in the market. The human resources or the employees are considered to be the most important part of the entire operations of the organization (Fletcher, Alfes & Robinson, 2016).

This department of the organization is considered to be the backbone of all the operations. The performance is the key element which affects the revenues and the profitability of the organization in the market. The process of designing the training program is important for the proper operations of the company in the industry or sector. The process of on the job training is the most common type of training process that is used in the modern organizations. This process provides a practical experience to the employees which can help them in gaining the skills that are important for the proper operations (Frost, 2016).

The style of delivery of the training process is important for the successful completion of the entire process. The trainer in this case plays a significant role in providing the right type of knowledge and information to the employees. The organizations thereby provide training to the employees based on the goals that are set by the management on a long-term basis. The process of training and development is thereby for the organization so that it is able to compete in the global environment in an effective manner. Training and development is therefore linked directly with the employees and the overall performance of the organizations as well (Jacot, Noren & Berge, 2014).

The improvement of the organizational performance will thereby lead to the improvement of the revenues and profitability in the industry in which it has the operations. The training programs can incur some costs for the organizations which ae conducting them. However, this process improves the skills and the performance of the employees and the performance of the organization as a whole (Jayakumar & Sulthan, 2014). 

The organizations need to consider the budget related constraints that are based on the implementation of training programs for the employees. Budget involves a systematic process of the collection of data and information which can support the finances related to the objectives of the organization. The organizations in the modern era have a process to create and maintain the budget in an effective manner. The two major methods that are used by the organizations to maintain the budget related information are, incremental budgeting and the zero-based budgeting. The process of budgeting thereby requires collection of different types of data (Kadiresan et al., 2015).

Budget Management for Training Programs

The budget related to the human resource perspective is based on the data which is required for the purpose of creating a budget which include, the number of employees which are projected for the next year. The benefits related costs which increases, the turnover rates that are projected, the actual costs which are incurred in current year and the new programs or benefits which are planned. The changes that are made in the policies of the business, the strategy of the business and the regulations that can impact the various costs (Keep, 2014).

The different items that are included in the budget of the HR department are as follows, the placement and selection which further include, recruitment based advertising, temporary help, agency fees, skills based testing, employee referral program, drug based testing, background checks, travel related to recruitment, printing based costs, development of web. The training and development based programs which include, the external programs, travel based expenses, registration fees, costs related to certification based exams, internal programs, consulting fees, the program materials, beverages and food and rental charges for audio-visual (Kirkpatrick & Kirkpatrick, 2015).

The benefits and compensation which include, salaries of employees, the payroll costs, overtime, incentive compensation life insurance and many more. The labour relations and employee based activities which include, service awards, recognition program, software based on the performance appraisal, survey of attitude administration, incentives based on the attendance, attorney fees based on employment, programs awards based on suggestion (Sheehan, 2014). The development of a training budget of the organizations is important for the ways by which the management can allocate the appropriate funds for the training of the employees. The planning process of the training based expenses and the link that is established with the strategic objectives is based on the cost-cutting methods which can reduce the training budget of the organization (M. Smith, Stokes F. Wilson, 2014). 

The management thereby needs to ensure that the employees can get the knowledge and the skills which they need to perform on their job in an effective manner. The management of the training resources and budgets in an effective manner ensures that the employees have the required skills that can help in the accomplishment of the tasks. The budget based training includes the indirect and direct costs which is required to design, develop, analyse, evaluate, implement and maintain the materials and the courses. The employees thereby need to maintain the credentials for the purpose of adhering to the state, local and the federal based regulations
(Osburn, Hatcher & Zongrone, 2015).

The benefits that are related to the training programs of employees are based on gathering costs which are based on training programs which allows the stakeholders and the sponsors to optimize the training based expenses. The review process of the training budget from the previous year which allows the evaluation of the costs. The identification of the funds that are required for training is related to the programs that are required for the accomplishment of the strategic goals of the company. The identification of costs which are related to the gaps that exist in the performance of the employees in the organizational processes. The expenses of the training budget are monitored based on the training based activities (Sheehan, 2014).

The process of employee training is based on the various costs that are based on the requirements of the entire training process. The training of employees has been quite unpredictable in nature and it is important for the approach which is a major issue. The management of the employee training based costs is important for the calculation of the budgets that are based on the training of employees. The major relevant factors need to be analysed in a careful manner for the purpose of deciding the budget of the training. The specialists who are consulted for this purpose are mainly, human resource personnel, managers, and the others who are needed for the training program. After the consultation of the various specialists, the actual process of calculation takes place (Shuler & Keller-Dupree, 2015).

The major factors that are related to the training program are, course materials, workbooks and videos, fees of the facilitators, rental fees, license fees, costs related to video conferencing, hardware based costs and the administrative costs. The other factors that are considered to be important by the organization also needs to be included in the costs of the organizations (Sung & Choi, 2014). The modern organizations may also consider the process of the competitive learning strategy which also has some necessary information. The strategy can also be considered for the implementation which is based on the process of dealing with the performance analysis and the training based reviews. The establishment of the different skill sets are also an important part of the strategy based on the organizational learning (Osburn, Hatcher & Zongrone, 2015).

My organization has also taken many initiatives for the proper training of the newly joining employees. The training process that has been implemented by my organization is based on the various different programs that have been implemented in my work process. The training programs have been designed many years ago and no changes have been made in the training based process. According to me some major technological changes need to be made in the training processes that are used in the organization. This will further help me and the others in the organization to gain the skills that are important for my proper operations in the company.  

Conclusion

The essay can be concluded by stating that the entire training and development program is based on the needs of the employees. The costs related to the training programs have changed in the recent years and the modern business environment. The various costs are thereby based on the materials and the trainers that are required to train the employees. The entire training based programs are based on the skills that are required by the employees to perform in the organization in an effective manner. The skills and the knowledge of the employees are further related to the ways by which the performance of the organization in the industry. 

References

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Brewster, C. (2017). The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge.

Dodson, M. N., Kitburi, K., & Berge, Z. L. (2015). Possibilities for MOOCs in corporate training and development. Performance Improvement, 54(10), 14-21.

Dysvik, A., & Kuvaas, B. (2014). Self-determination theory and workplace training and development. The Oxford handbook of work engagement, motivation, and self-determination theory, 218-228.

Fletcher, L., Alfes, K., & Robinson, D. (2016). The relationship between perceived training and development and employee retention: the mediating role of work attitudes. The International Journal of Human Resource Management, 1-28.

Frost, S. (2016). The importance of training & development in the workplace. Small Business, https://smallbusiness. chron. com/importance-trainingdevelopment-workplace-10321. html.

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Kadiresan, V., Selamat, M. H., Selladurai, S., SPR, C. R., & Mohamed, R. K. M. H. (2015). Performance appraisal and training and development of human resource management practices (HRM) on organizational commitment and turnover intention. Asian Social Science, 11(24), 162.

Keep, E. (2014). Corporate training strategies: the vital component?. New Perspectives, 109-125.

Kirkpatrick, J. D., & Kirkpatrick, W. K. (2015). Creating a post-training evaluation plan. Training & Development, 42(1), 12.

Smith, S., Stokes, P., & F. Wilson, J. (2014). Exploring the impact of Investors in People: A focus on training and development, job satisfaction and awareness of the Standard. Employee Relations, 36(3), 266-279.

Osburn, H. K., Hatcher, J. M., & Zongrone, B. M. (2015). Training and development for organizational planning skills. The Psychology of Planning in Organizations: Research and Applications, 334.

Sheehan, M. (2014). Investment in training and development in times of uncertainty. Advances in Developing Human Resources, 16(1), 13-33.

Shuler, M. K., & Keller-Dupree, E. A. (2015). The impact of transformational learning experiences on personal and professional counselor-in-training identity development. The Professional Counselor, 5(1), 152.

Sung, S. Y., & Choi, J. N. (2014). Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations. Journal of organizational behavior, 35(3), 393-412.