INTRODUCTION
In the
current highly globalized business world, there are very few sources for the
business organizations to create competitive advantages as all the resources
are more or less substitutable by the other competitors. But only efficient
human resources of a firm can produce the sustainable competitive advantages (Steven, Timothy and Roach, 2012).
To develop a highly efficient workforce and to satisfy their continuous skill
demands, training and development is the most crucial strategic function for
any organization. The industries where the organizations require close
interactions with the end users highly capable workforce is must for them. Not
only that but also to be successful in this types of industries an organization
requires to provide continuous training and development assistance to the
employees to be survived and successful in the market (James and Kirkpatrick, 2010).
Retail industry is one of them. In case of retail business it is more important
as they are customer oriented business where a strong workforce is required to
make close interactions with them to achieve their maximum satisfaction. As a
part of the global retail industries, Tesco requires highly efficient workforce
with appropriate skills and capacities to ensure maximum performance which can
be ensured by proper training and development. Additionally, to uphold the
higher performance level of the employees, the organization must ensure
continuous skills and capacity development which can be ensured through ongoing
training and development programs (Steven, Timothy and Roach, 2012). The
current essay is mainly based on the area of the impact of training and
development on employee performance. Within this area, a research question is
developed and based on these question further activities, evaluations and
conclusions are drawn in this essay.
QUESTION FOR THE ESSAY
It is
very clear to all that training and development s high important for all types
of organization in the modern highly competitive business world. The reason
behind it is that the training and development enhances the skill level of the
workforce of an organization in an ongoing basis. This skill development
thorough the ongoing training and development programs enhance the level of
performance of the employees. The organization is highly benefitted by the
training and development programs as it enhances the performance of the
employees (Calhoun, Roy, Pollock and
Jefferson, 2010). But if the organization
understands that how the training and development programs impacts on the
employee performance very clearly , it will be able to generate the high
importance on this area which will enhance the organizational performance
efficiently. To clarify that the entire research is based on the following
question-
“What
are the impacts of training and development programs on employee performance?”
METHODOLOGY
The
essay is mainly a secondary research on the impact of training and development
on employee performance. For that
reason, the entire work is carried out based on the secondary data. The
secondary data required for the current work has been collected from different
secondary sources like printed sources and electronic sources (Tabachnick & Fidell, 2007).
The printed sources from where the required data has been collected are
different printed books, journals and magazines related to training and
development and employee performance.
The electronic sources where required data has been collected are
different e- books, internet based journals and magazines related to training
and development and employee performance (Tabachnick & Fidell, 2007).
LITERATURE REVIEW
Training
and development
Training
and development is one of the most important human resources function within
the organizations as it ensures the expected level of skills and capacities of
the employees to exert their best performance. The high level of employee
performance ensures the maximum organizational performance and productivity. In a sentence training and development is one
of the most important managerial function which is designed for the enhancement
and enrichment of the skills and capacities of the employees within an
organization (Patrick
and Bruce, 2000). More broadly, training and development is
the set of activities which is designed and delivered to the employees within
an organization to enhance their performance by improving their skills and
capacities. Within the training and development programs an organization uses
different educational programs and techniques as compulsory and voluntary
obligations to the employees. For example: Coaching or sending employees to an
external training institution related to their professional areas (Shields,
2007).
There
are different types of training and development programs can be used by the
managers of an organization to enhance the employee skills and capacities for
achieving higher employee performance.
All the training and development programs can be divided into mainly two
categories which are on the job training and development programs and the off
the job training and development programs (Calhoun, Roy, Pollock and Jefferson, 2010).
The training and development programs which are undertaken within an
organization to develop the skills and capacities of the employees in the
organization is called as the on the job training programs or techniques (Harrison, 2005).
For example: coaching, monitoring, working with skilled persons and working
under the supervision of the seniors. Off the job training programs are the
training programs which are used by the organization to enrich its workforce by
sending them outside to attend different workshops, seminars, observations and
professional courses are called as the off the job training programs (Patrick and Bruce, 2000).
Different
management scholars supports the view that on the job training is the most
effective and efficient training programs to develop employee skills and
capacities to enhance their performance. The reason behind it is that it is
less costing, highly effective, opportune ground to learn new skills and
capacities for the new and existing customers. For example: if Tesco sends an
employee under the expert employee within the organization, the organization is
not bound to pay additional reward to the expert employee (Harrison, 2005).
But
there is a group of business scholars which doesn’t support the views as they
believe that on the job training is not such effective and efficient as it is
expected. To support the counter logic, they have stated that on the job
training programs are the extra burden or workloads for the trainers which may
slow down their productivity and kill valuable times of the trainers (Kesler, 2002).
Additionally, it may be less effective as for the lack of sufficient skills and
capacities of the trainers. For example: if a manager within Tesco store is
imposed by the responsibility to train few new employees which is not his/her
regular duty, it must hamper the regular flow of his/her regular job (Steven, Timothy and Roach, 2012).
This
group of people highly support the off the job training and development
programs as they believe that this type
of training and development programs are provided to the employees in a relaxed
and acceptable manner, through these programs latest skills and capacities are
imported to the organization (Harrison, 2005). For
example: If Tesco sends its mangers to learn CRM in a professional CRM firm,
he/she must be enriched with latest skills and knowledge of CRM. Additionally,
it provides employee motivation, higher opportunities from the external experts
to learn and maximise skills and capacities. Some human resource specialists
strongly oppose the external training and development programs as it may incur
high cost, increase employee turnover and there is a little opportunity to
evaluate the development (Shields, 2007).
A
classic group of management philosophers are out of these two types of scholars
previously stated as they believe that nether neither on the job training nor
off the job training programs is individually perfect for an organization to
ensure maximum skills and capacities to the employees. They argued that both
types of training and development method should be used according to their
suitability according to the situations and skill needs (Patrick and Bruce, 2000).
Theories
regarding training and development
In the
current customer oriented market environment, to be successful and to be
sustained in the market, a highly skilled and capable workforce must be
achieved by a firm. To ensure that the organizations within the customer
oriented market environment, the organizations should ensure effective,
efficient and ongoing training and development programs. Otherwise, the
organization will suffer from the threat of extinction (Laird,
2003).
In the
production oriented market environment, management of the organization had a
traditional view regarding training and development programs as they though it
as the traditional and regular job. They did not provided training and
development programs based on the skill demand of the employees (Calhoun, Roy, Pollock and Jefferson, 2010).
But in
the current highly competitive customer oriented global market, training and
development is the strategic point for an organization to create the
sustainable competitive advantage for the organization. It is now a strategic
option for the organizations (Steven, Timothy and Roach, 2012). The
modern organizations efficiently assess the skill gaps of the employee by the
comparison between the existing and desired skill level of the employees. Based
on the skill gaps, the training and development programs are selected and
offered to the employees who ensure the maximum skill development. In same way,
the highly skilled employee exerts high performance for the organization
(Shields, 2007). The most effective organizations does applies this strategic
approach to the training and development programs for the employees on an
ongoing basis which ensures the continuous update of skills and capacities of
the employees. This upholds continuously maximized performance of the employees
(James and Kirkpatrick, 2010).
In
contrast, the organization which still now is in the traditional view of
training and development programs and avoids the strategic views takes the
training and development programs as the regular job not strategic job. They do
not carefully assess the skill gaps of the employees (Laird,
2003). They provide training and development programs
to the employees as they think better (Patrick and Bruce, 2000).
In this way, the employees cannot get proper facilities to quench their skill
needs. As a result they suffer from high skill gaps by the passes of time. They lose their performance level and it
directly effect to the organization performance negatively. The organization loses its competencies to
cope with the competition within the market (Harrison, 2005).
Strategic
training and development process
Source: http://jpk.tjtc.edu.cn/08/jiudian/3_Lect/d06.htm
The
strategic view of the training and development within an organization can help
an organization in different ways which is suggested by the different management
scholars. The strategic view to the training and development programs within an
organization will help it to have the maximum employee performance through
removing their skill gaps and improving their skills continuously and
efficiently (Steven,
Timothy and Roach, 2012). Strategic training and
development programs enhance the employee satisfaction as it creates a greater
opportunity for the employees for enriching them and developing their carriers
which maximizes the employee performance. Through the effective and efficient
skill development assistance from the organizations, employees bloom their
maximum potentialities and exert highest performance, innovation and creativity
which directly improves the organizational productivity, profitability and
efficiencies. Additionally it reduces
the employee turnover, higher flexibility and satisfied customers (Shields,
2007).
Employee
performance
Employee
performance is the desired level of performance of employees based on the
delegated authorities and responsibilities or activities and duties are imposed
by the organization. It is the measurement of the perfection of the executed
activities or duties of the employees within the organization (Patrick and Bruce, 2000).
In the current cutthroat globalized market environment, employee performance is
one of the major concerns for all the organizations. The reason behind it is
that higher employee performance ensures the higher organizational performance.
Higher productively of organizations requires the high performing employees as
the precondition. In contrast, the higher return of the organizations requires
higher productivity (Calhoun,
Roy, Pollock and Jefferson, 2010).
Diverse
factors like higher employee skill development, clear communication of the objectives
of organization, proper motivation, efficient environmental supports, efficient
performance monitoring, control of performance and appropriate leadership
strategies are the major preconditions for ensuring the maximum performance of
the employees within an organization. Among the all factors one of the most
important factors to ensure the high performance of the employee is the high
level of skills and capacities of them (Laird,
2003).
But
many human resources scholars have been agreed that it is highly tough to
maintain high skills and capacities as the current business environment is
highly volatile. In environment, the skills sufficient for today are
insufficient for the next day (Kesler, 2002). Human
resources management critics have stated that there is only way which can
uphold the skill level of the employees up to date and efficient for high
performance which is efficient and ongoing training and development programs (James and Kirkpatrick, 2010). They
have showed the logic that an ongoing and effective training and development
program continuously and effectively define the skill gaps of the workforce and
continuously provides skill supports to fill the gaps. In this way, the
employees remain out of skills gaps and perform efficiently and effectively at
their maximum potential level of performance (Kesler, 2002).
Most of
the management specialists urged that there are some special barriers which
block the higher employee performance of an organization to achieve the
organization goals and objectives (Harrison, 2005). The
high lack of required skills and capacities of the employs, poor performance
management system, employee skill development programs are traditional and
irregular, lower level of employee motivations, inept employee performance
evaluation system, unclear organizational goals and poor management styles are
the major barriers for the high performance of the employees of an organization
(Shields, 2007). The proper and strategic approach of training and development
programs within an organization can resolve most of the performance related
barriers is supported by different management scholars (Patrick and Bruce, 2000).
In
other way, a group of management specialist believes that an organization must
suffer from poorest performance level when the organization will not be able to
arrange a strong, effective and ongoing employee training and development
programs as it will create a huge skills and capacities gaps in comparison to
the required level of skills capacities by the employees (Kesler, 2002).
Training
and development in retail industry
Training
and development is one of the most important critical success factors for the
retail organization as it helps to build a strong workforce with high skills
and capacities and highly skilled and capable workforce perform at their
maximum level which maximizes the organizational performance (Laird,
2003). The high performing employees, being skilled
thorough proper training and development, helps a retailer to cope with the competition,
solve customer problems and brings operational efficiencies.
The
proper training and development within a retail organization enhances the
product knowledge & skills and winning combination of knowledge enthusiasm
which ensures the maximum satisfaction of the customers and business success.
If any organization is unable to arrange effective and efficient training and
development programs, the employees will suffer from product knowledge and they
will not be able to show maximum performance to provide maximum values to the
customers. It will hinder organizational success (Shields, 2007).
An
efficient training and development within a retail organization ensures the
skills among the employees to deal with customer properly, understand their
needs effectively and efficiently, overcome the customer objections
successfully, understand the best ways to sale, use scarcity and urgency to
close the sales, create add-on sales by recommending customers (Harrison, 2005).
This ensures the maximum performance in selling products by the employees. If
there are no effective and efficient strategies to ensure those skills among
the employees, it generates frustrating sales performance (Calhoun, Roy, Pollock and Jefferson, 2010).
The
successful performance of the employees relating to in-store procedures within
retail organizations is highly dependent proper training and development
programs (Laird, 2003). The
reason behind it is that proper training and development programs teaches the
employees the best ways to receive and storing merchandise, efficient pricing
of merchandise, stock and merchandise the sales floors safely and effectively,
handle special orders, indentify the merchandise for markdowns, handle cash and
sales receipts and store security procedures (Patrick and Bruce, 2000).
If the organization is unable to manage strategic training process within the
organization it will create inefficiencies in in-store procedure and this will
destroy the operational efficiencies and organization productivity and profitability
(James and Kirkpatrick, 2010).
To
satisfy the customer successfully to make them loyal to a retail organization,
there will be superior customer services strategies. To ensure the most perfect
customer services, an organization must ensure the proper skills and capacities
within the organizational employees to make superior interpersonal relationship
and dedication for customer satisfaction. If the organization fails to make
their employees highly efficient to manage the proper skills to deal with
better employees in better manner the organization must be failed to ensure the
superior customer services and customer satisfaction.
Discussion
If an organization
is able to maintain the effective and efficient training and development
programs, the organization will be able to enhance the maximum skills,
capacities and growth of potentialities of the employees (Kesler, 2002).
The maximum level of skills, capacities and growth of potentialities will
ensure superior employee performance within the organization. In contrast if
the organization is not able to manage an effective and efficient training and
development strategy, the employees of the organization will face skill gaps
and day by day the skill gaps would be higher and higher. This will directly
reduce the employee performance and ultimately, it will slow down the
organizational growth and productivity.
The
proper training and development programs within an organization will ensure the
superior and ongoing performance of the employees as it will help the employees
to reduce skill gaps successfully (Laird, 2003).
It will increase employee satisfaction and retentions significantly. Most
importantly it will reduce employee turnover and provide higher flexibility and
superior customer satisfaction. In contrast if the organization fails to ensure
proper training and development programs it will increase skill gaps, reduce
employee satisfaction and retentions significantly. Most importantly it will
spark up employee turnover and poor customer satisfaction (Calhoun, Roy, Pollock and Jefferson, 2010).
When an
organization will take the training and development programs as the strategies
options for the organization, it will ensure the maximum perfection of
designing and applying training and development programs. This will effectively
ensure the maximum skills and capacities of the employees to ensure highest
performance. If the organization takes the training and development programs as
the traditional option, it will reduce the effectiveness and efficiencies of
the training and development programs and it will lower the employee
performance (Harrison,
2005).
The
proper management of successful training and development programs by an
organization will improving their skills continuously, bloom their maximum
potentialities and exert highest performance, innovation and creativity which
directly improves the organizational productivity, profitability and
efficiencies. If the organization fails to manage superior training and
development programs it will result the lower organizational productivity,
profitability and efficiencies (Laird, 2003).
The
proper training and development within Tesco as a retail organization will
enhance the product knowledge & skills and winning combination of knowledge
enthusiasm which ensures the maximum satisfaction of the customers and business
success. If the organization is unable to arrange effective and efficient
training and development programs, the employees will suffer from product
knowledge and they will not be able to show maximum performance to provide
maximum values to the customers. It will hinder organizational success (Patrick and Bruce, 2000).
The
introduction of an efficient training and development within an organization
will ensure the skills among the employees to deal with customer properly,
understand their needs effectively and efficiently, overcome the customer
objections successfully, understand the best ways to sale, use scarcity and
urgency to close the sales, create add-on sales by recommending customers (Kesler, 2002).
These will ensure the maximum performance in selling products by the employees.
If there are no effective and efficient strategies within an organization to
ensure those skills among the employees, it generates frustrating sales
performance (Harrison,
2005).
The
successful performance of the employees relating to in-house procedures in an
organization is highly dependent proper training and development programs. The
reason behind it is that proper training and development programs teaches the
employees the best ways to receive and storing merchandise, efficient pricing
of merchandise, stock and merchandise the sales floors safely and effectively,
handle special orders, indentify the merchandise for markdowns, handle cash and
sales receipts and store security procedures (Kesler, 2002). If
the organization is unable to manage strategic training process within the
organization it will create inefficiencies in in-house procedure and this will
destroy the operational efficiencies and organization productivity and
profitability (James and Kirkpatrick, 2010).
To
satisfy the customer of Tesco successfully and to make them loyal to the
organization, there will be superior customer services strategies in an
organization. To ensure the most perfect customer services, an organization
must ensure the proper skills and capacities within the organizational
employees to make superior interpersonal relationship and dedication for
customer satisfaction (Laird, 2003). If
the organization fails to make their employees highly efficient to manage the
proper skills to deal with better employees in better manner the organization
must be failed to ensure the superior customer services and customer
satisfaction (Harrison,
2005).
CONCLUSION AND RECOMMENDATION
From the above analysis it
is clear that the training and development programs have a strong impact on the
employee performance of an organization. If an
organization can successfully manage the training and development programs
efficiently, the organization will enjoy the maximised employee performance
which will directly contribute to the organizational success. If the
organization is failed to manage training and development the organization will
lose the performance of the employees. Ultimately it will slow down the growth
and profitability.
To reap the benefits of the
effective and efficient training and development programs proper combinations
of the on the job training and off the job training according to the situation
should be ensured by an organization as no training method is
individually perfect. The organization must take the training and development
programs within the organization as the strategic option not a regular or
traditional job. The organization to ensure proper training and development
programs, an organization must assess skill gaps
carefully, based on the skill gaps the efficient training and development
programs will be offered to the employees to achieve their maximum performance.
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