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IMPACT OF EMPLOYEE TRAINING AND DEVELOPMENT ON PRODUCTIVITY Submitted To: Dr. Muzaffar Qureshi Submitted By: Wajiha Asad Sp14-RBA-014 Comsats Institute of Information Technology Term Paper

Impact of Employee Training and Development on Productivity

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Page 1: Impact of Employee Training and Development on Productivity

Submitted To:Dr. Muzaffar

Qureshi

Submitted By:Wajiha Asad

Sp14-RBA-014

Comsats Institute of Information

Technology

Term Paper

Page 2: Impact of Employee Training and Development on Productivity

IMPACT OF EMPLOYEE TRAINING AND

DEVELOPMENT ON

PRODUCTIVITY

Introduction

A lot of concepts have changed

from the last few decades. Before,

the training was given only at the

basic level or at the lower level but

now it has increased its scope to

every level of management from

top to bottom. Training

intervention in human resources

development is very crucial issue in

an organization to build a

leadership pipeline of managers

capable of leading creatively

through turbulent times.

Organizations investing in effective

training and development for

human resource tend to achieve

both short and long term benefits.

The effectiveness depends on the

degree of participation of

employees’ which reflects in the

intended effective business

outcome. Training and

development is an instrument that

aid human capital in exploring their

dexterity. Therefore training and

development is vital to the

productivity of organization’s

workforce.

Literature Review

Training is one of the several human resource practices that can have

considerable impact on employee commitment. Employee training and

development helps the organization in retention of employees and increases

employee's commitment to the company. Companies that invest in

employee training programs get a positive relationship between training and

commitment, and an inverse relationship with employee turnover. According

to research there is a positive relationship between training and employee

motivation, employee commitment and employee satisfaction. Aging

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Page 3: Impact of Employee Training and Development on Productivity

stereotypes are one of the principal barriers to the provision of equal access

to training in the workplace for older as well as young employees.

Training and Development relationship with productivity

As Training has traditionally been defined as “The process by which

individuals change their skills, knowledge, attitudes, or behavior” (Robbins

and DeCenzo, 1998). With the passage of time the new concept of training

is more elaborated. “Training is systematic development of the knowledge,

skills, and expertise required by a person to effectively perform a given task

or job” (Patrick, 2000). According to Armstrong (2001) “Training is a

process through which learning formally and systematically modifies

behavior through education, Instruction, development and planned

experience”.

“Development typically refers to long-term growth and learning. It is related

with directing attention more on what an individual may need to know or do

at some future time. While training focuses more on current job duties or

responsibilities, development points to future job responsibilities”

(Robinson and Robinson, 1995). “The process of training and

development is a continuous one. The need to perform one’s job efficiently

and the need to know how to lead others are sufficient reasons for training

and development and the desire to meet organizations objectives of higher

productivity, makes it absolutely compulsory” (Akinpeju ,1999).

Champathes (2006) found that more developed employees would be more

satisfied with the job, more committed with the job, as a result their

performance would be increased and when employee performance would

increase, this will lead to the organization effectiveness. Husselid, Pfeffer,

and Arthur (1994) gave five major practices in their study which effect on

employee performance, i.e., “Job autonomy, Organizational support,

Training, Distributive justice, Procedural Justice”.

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Page 4: Impact of Employee Training and Development on Productivity

Training is important for all managerial posts either senior executives or the

front line managers because it tells the management how to best use the

scarce resources of the firm. “Organizations invest in training and

development programs due to its sure benefit of productivity” (Lee &

Bruvold, 2003). “The process of training and development starts when

organization finds any gap between the current and desired situation,

organizations try to fulfill this gap to achieve higher levels of productivity”

(Babaita, 2010).

Training and Development effect of aging on employee

productivity

Today’s rapidly changing global business environment forces the firms to

change themselves to keep pace with the industry, employee training can be

used as a tool to make grounds for change. Due to these rapid changes

training and development become problem for the new and old employees.

Considering the medium to strong correlations found between age and

performance in research, it is surprising to find very little relationship

between age and job performance (McEvoy and Cascio, 1989; Sturman,

2004; Waldman and Avolio, 1986). The current and upcoming cohorts of

older workers (those now in their 40s) are less likely than younger workers to

have had an extensive exposure to technology such as computers (Czaja

and Sharit, 1998; Czaja et al., 2006)

“Older workers sometimes benefit from positive stereotypes, such as levels

of loyalty, reliability, experience and job commitment” (McGregor & Gray,

2002). Negative Stereotypes among employers are also prevalent. There

are four popular age stereotypes: older workers do not want to learn; older

workers cannot learn; older workers have great difficulty learning new

technology; and an investment in training older workers provides a poor

returns (Gray and McGregor 2003)

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Page 5: Impact of Employee Training and Development on Productivity

Related Theory

Donald L Kirkpatrick’s Evaluation Model

Kirkpatrick’s model is one of the best known evaluation method used for

judging learning processes of employees. It has four levels of evaluation:

Reaction of learner – What they thought

and felt about the education and training.

Learning – The resulting increase in

knowledge or capability.

Behavior – Extent of improvement behavior

and capability and implementation.

Results – The effects on the business or environment resulting from the

learner’s performance.

Stage

s

Kirkpatrick’s

levels

Evaluation tools

1. Reaction Feedback forms, verbal reaction, post-

training surveys or questionnaires

2. Learning Observation, interviews, assessments or

tests before and after the training

3. Behavior Observation and interview at different

times

4. Results Normal management systems and

reporting

Kirkpatrick's concept is quite useful as it makes an excellent planning,

evaluating, problem solving tool and adopting learning process.

Theory Limitations:

Kirkpatrick (1977) confirms that the usefulness of stage one evaluations is

dependent upon the honesty of the learners who complete and feel

comfortable in being able to tell the truth. This would limit the opportunity

for the trainer to provide additional support for learners where they felt that

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Page 6: Impact of Employee Training and Development on Productivity

their objectives were not met. Lee and Pershing (2002) believe that

Kirkpatrick provides insufficient guidance on how stage one can be achieved

through a questionnaire and suggests guidelines in this area would be useful.

Discussion

Training is not provided just to get knowledge or improve certain skills but it

also helps to enhance ones entrepreneurial skills, confidence or creativity

and helps them to be more welcoming toward the changes in the

organization. It is also being provided to increase the employee decision

making skills, which eventually lead an employee to perform well and

increase the productivity of an organization. As discussed in model below:

Model

(Independent Variable)

(Dependent Variables)

Research shows that; if organizations implement employee training and

development programs, then productivity level of employees will increase,

but age of employees act as the moderator variable which will affect the

productivity of the aging employees.

Due to age discrimination of employees training and development

organization believes in fall of productivity. Employees skills and knowledge

considered outdated when technology changes. As older workers thinks that

they are receiving less promotion or a pay than their younger colleagues.

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Employee Productivity

Employee Training and Development

Age

Page 7: Impact of Employee Training and Development on Productivity

Organization also pay no emphasis on older employee training because they

are not adopting rapid changes with pace of time, they are less flexible and

employee themselves are not responding favorably. Training programs help

to maintain and promote the active participation of ageing employees in

society, and also limit the pressures on social care, health and pension

systems and to improve individual quality of life.

On the other hand older employees are loyal and reliable investment for the

organization to increase its productivity then new comers. Young employee’s

turnover rate is higher than older employees. Younger workers ‘face

negative assumptions about their maturity and reliability, their emphasis on

their social life and a reduced likelihood to stay with a company, because

they are at an early point in their careers. The increase in unemployment

generally has made issues around skills shortages due to an ageing

workforce. Work motivation among older workers may be enhanced by

organizational strategies and managerial practices that take into account

normative patterns of adult development.

Training of employees should allow the learner to make errors, and should

provide immediate feedback regarding how to correct mistakes. The older

employees should be actively involved in the learning process, and an

engaging environment that captures the attention of the learner should be

created. Providing training is not more important than its actual

implementation by employees on their actual job and managing older and

newer employees to adopt environmental fluctuations. In today’s changing

global environment training is very important to keep the employees up–to-

date and help them to cope with the changing environment, technology and

competition. It also helps an organization to get a competitive edge on their

competitors and increase its sales profit and provide learning culture in

organization.

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Page 8: Impact of Employee Training and Development on Productivity

ConclusionThe result that derived from research that there exists a strong positive

relationship exist, when employees are provided an opportunity to get some

work related training, such employees showed impressive improvement in

their productivity level. Aging stereotypes are one barriers which exist for

establishment of equal access to training in the workplace for employees. To

overcome their barriers organization must provide equal employment

opportunities for training of the employees. Training is also helpful in making

the employee efficient and motivates them enough so that they can grab

future opportunities and make better decisions.

A manager should be vigilant to know that, are the employees satisfied with

the training they are getting and will it be helpful for the organization in

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Page 9: Impact of Employee Training and Development on Productivity

increasing its productivity or not. Organization should try to retain the highly

trained employees by providing them high prospects within the organization.

They should provide more training opportunities to newly appointed

employees as well as old employee and also provide full support and

guidance to employees during the times they are in training.

The increases in youth unemployment are taking the focus away from the

retention of older workers and onto employment at the younger end of the

workforce. Indeed, the increase in unemployment generally has made issues

around skills shortages due to an ageing workforce. Training mold’s the

employee’s attitude and helps them to achieve a better cooperation within

the organization. Training and Development programs improve the quality of

work-life by creating an employee supportive workplace.

Reference Hutchings, K., Cieri, H., & Shea, T. Employee Attraction and Retention in the

Australian Resources Sector. Journal of Industrial Relations, 83-101.

P. Kulkarni, M. (2013). A Literature review on Training & Development and

Quality of work life. International Refereed Research Journal, Vol.–IV (Issue – 2).

Bartel, A. P. (1991). Productivity Gains from the Implementation of

Employee Training Programs. Working Paper No. 3893. National Bureau of

Economic Research. Cambridge, MA 02138.

Bartel, A. P. (1989). Formal Employee Training Programs and Their Impact

on Labor Productivity: Evidence from a Human Resources Survey.

Working paper No. 3026. National Bureau of Economic Research. Cambridge, MA

02138

Abdullah, H. Major Challenges to the Effective Management of Human

Resource Training and Development activities.

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Page 10: Impact of Employee Training and Development on Productivity

Aguinis, H., & Kraiger, K. Benefits of Training and Development for

Individuals and Teams, Organizations, and Society. Annual Review of

Psychology, 451-474.

Mudor, H., Tooksoon, P., (2011). Conceptual framework on the relationship

between Human Resource Management practices, Job Satisfaction, and

Turnover. Journal of Economics and Behavioral Studies, 2(2), pp.41-49.

Babaita, I. S. (2010). Productivity as a Driving Force for Investment in

Training and Management Development in the Banking Industry.

European Journal of Social Sciences

Cully, M., Heuvel, A., Curtain, R., & Wooden, M. Participation in, and Barriers

to, Training: The Experience of Older Adults. Australasian Journal on Ageing,

172-179.

Lee, C. H. & Bruvold, N. T. (2003). Creating Value for Employees: Investment

in Employee Development. The International Journal of Human Resource

Management.

Acton, T., & Golden, W. (2002). Training: the way to retain valuable it

employees. Informing Science. Galway, Ireland.

Nadeem, M. (2010). Role of Training in Determining the Employee

Corporate Behavior with Respect to Organizational Productivity.

International Journal of Business and Management, Vol 5(12).

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The Academy of Management Review, 440-440

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