Benefits of Training and Development Programs

The Benefits of Implementing Training & Development Program in an Organization.

The Benefits of Implementing Training & Development Program in an Organization.



Introduction:

Investments made on training and development, are a question that need to be vindicated in the form of enhanced performance of an organization. (Salas & Cannon-Bowers, 2001).Few skeptical analyst consider training and development as a cost that needs to be minimized (Kraiger, 2003).Moreover the connection between training programs and outcome criteria is not considered very strong. Wright and Geroy (2001, p.586).

The organizational performance should depict the positive effects of training and development program in the form of enhanced productivity on organizational level. [Haccoun and Saks, 1998] and [Ramlall, 2003]).

Study on trainings and organizational outcomes:

We have analyzed the some studies published in various journals. Our review covers outcomes on human resource, finance and overall performance of the organizations. We gathered the studies from manual as well as electronic searches (PsycINFO, Sociological Abstracts, Business Premier, ABI/Inform).

Human Resource outcomes:

Concerning staff attitudes, all relationships are found positive and significant. Added job satisfaction is reported due to increased proficiency and better career prospects.

Concerning staff turnover, 63% relationships are found significant. There is sufficient evidence to imply that trainings contribute positively in employees' retention.

If the relationship is negative in some cases between staff turnover and trainings, it suggests that when they are in high staff turnover, organizations increase their training and development to retain the human capital. (Shaw et al. 1998)

Concerning human capital, studies conclude that more trainings result in enhanced skills (Wright et al., 1999), improved competency (Fey et al., 2000), higher retention rate and increased motivation level (Fey et al., 2000).

Financial outcomes:

For Financial results, effects of trainings on profitability, returns, liquidity and general cash flows outcomes are considered. There is weak relationship found in training and financial ...