LEADERSHIP AND DEVELOPMENT

Leadership and Development

[Name of the Institute]

Leadership and Development

Task 1

Discusses the arguments for organisations maintaining a robust training and development budget in times of economic recession, showing how training & development can contribute to achieving business objectives.

Introduction

Training is a process of enhancing the knowledge of employees by providing them with learning opportunities. Many organizations rely on its training department for enhancing the performance and productivity of employees working in the organization. Training is essential for the growth and development of organizations and employees. Employees are one of the most important parts of the organization, which contribute directly in the performance and productivity of the organization (Brown, 2002). Effective training and development can help organizations in achieving their goals and targets. It provides employees with a chance of learning, which enhances their skills, abilities, ideas and provides them with a chance of development.

Every organization operating in different sectors and industries have to face some economic threats. It is necessary for the business to make plans and budgets that can help the business in dealing with economic recession. Economic recession can hit any economy, and its consequences can get worse if organizations are not prepared for it. Planning and leading help in developing training and development budgets that can help in dealing with the economic recession. Training and development are essential needs of organizations, and it is the responsibility of HR managers to plan their training process efficiently and effectively according to the needs and requirements of the organization (Becker and Huselid, 1999).

Discussion

Recession is the contraction in the business cycle, where the economic activities slow down. There are many factors, which have an impact on the economic activities. These factors include employment, gross domestic product, and investment spending, housing income, inflation and business profits. Recession has a negative impact on the economic conditions of the country and it results in increasing the rate of unemployment and bankruptcies. It has a negative impact on businesses, and as a result companies have to take immediate actions and decisions to deal with the situation. Lay-off employees are one of the most common actions taken by leaders and managers. The managers and leaders aim to reduce their costs so that they can manage their activities in a better way. Businesses should be ready for economic downturns, and they should plan everything accordingly (Anand, Gardner and Morris, 2007).

Advantages of Robust Training and Development Budgets

Training and development play a significant role in organizations and its growth and success. Developing robust training and development budgets help businesses in many ways. Since the banking crisis of 2008 and the subsequent economic difficulties that are being felt around the world, many businesses have been striving to reduce costs. Many researchers believe that developing robust training and developing budgets will help in dealing with economic recession (Becker and Huselid, 1999).

Economic recession has hit many nations, and if businesses are not ready to deal with the situation, they can face a serious crisis. Planning budgets help businesses in dealing with ...