Wednesday 2 December 2015

An academic essay for UK business students: A critical analysis on the impact of training and development on employee performance in global retail industry




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.

REFERENCE


1.      Tesco Plc, (2014). History. [Available at: http://www.tescoplc.com/index.asp?pageid=11]. Accessed: 28-02-13
2.      ESRC, (2013). ESRC Retail Sector Initiative 2013. [Available at: http://www.esrc.ac.uk/funding-and-guidance/funding-opportunities/16967/esrc-retail-sector-initiative-2013.aspx]. Accessed: 28-02-13
3.      Steven, A.B, Timothy, P.M. and Roach, K. D., (2012). Training and Development: Enhancing Communication and Leadership Skills. London: Pearson
4.      James and Kirkpatrick, W., (2010). Training on Trial: How Workplace Learning Must Reinvent Itself to Remain Relevant. NY: Mermaid publication 
5.      Calhoun, W.W., Roy, V. H., Pollock and Jefferson, A., (2010). The Six Disciplines of Breakthrough Learning: How to Turn Training and Development into Business Results. NY: Sage Publication
6.      Patrick, J.M. and Bruce, H.C., (2000). "Training and Development". Management. Barron's Educational Series. p. 225. Noe, R.A., (2002). Employee training and development: London:  McGraw-Hill/Irwin.  
7.      Laird,    D., (2003). Approaches to training and development. NY: Free press
8.      Shields, J., (2007). Managing Employee Performance and Reward. London: Pearson
9.      Harrison, R., (2005). Learning and Development. CIPD Publishing. p. 5.
10.  Kesler, G.C., (2002). "Why the leadership bench never gets deeper: Ten insights about executive talent development" (PDF). HR Planning Society Journal 25 (1)
11.  Tabachnick, B. G., & Fidell, L. S., (2007). Using multivariate statistics (5th ed.). Boston: Allyn & Bacon.









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