“The efects o training and development on employee productivity Literature Review: The rst article o my literature literature review is about ormal training programmes programmes and their impact on labor productivity by (Ann ! ! "artel# $%&%'! This article utilies a single database to measure the determinants o the diference in “ormal training across businesses and the impact o these training on labor productivity)! *n results they have observed a positive relationship that e+ists between the two! *t urther states that ,!- organiations with ty or more employees spend ./0 billion on ormal programmes or 1R2!
This article also considered organiations organiations as the units o observation !They have strived to develop a single economic e conomic model to derive hypothesis about variables that can help to e+plain why some businesses invest more in employee training than others!
According to the 3conomist who studies on4the45ob training has mainly been interested in modeling who receives training and how it “afects the individual6s growth in earnings over his lie)! 3+amples o this literature are the studies done by 7incer ($%&/# $%&8'# "rown ($%&/'!
These studies arrange the orums o national surveys such as -tudy o *ncome dynamics etc! *normation on training is ta9en rom the individuals who are surveyed !The main ndings o this research can be summaried in a sense that individuals who receive training are li9ely to be young !7ost studies also ound out that educated people tend to receive more training than less educated !
rivate sector training is ound to play pl ay a vital role in determining pay scale and career patterns o young wor9ers individuals who get more training have somehow large wage growth and longer 5ob tenure !According to the survey conducted by 3;# it was noticed and elaborated that individuals who get more training in their rst three months o employment have signicantly rapid growth during their rst two years o their employment!
*n short this article tells us that employee training has positive career impacts on individuals who receive it# and that ,- companies companie s spend handsome amounts on
ormal training! 1ence# it can be concluded that employee training is efective in improving 5ob perormance!
This article is about the efects o human resource management practices on productivity by
iovanna rennushi! ?rom American 3conomic Review (0%@$$@0$'!They have tried to investigate the productivity efects o competent employment practices using data rom a sample o /B steel production lines owned by $8 companies! ?urther regression analysis elaborate those lines using a set o innovative wor9 practices such as training than do lines with more traditional approaches which are strict wor9 rules etc!
The study provides empirical evidence about the productivity o alternative employment practices using data that have been assembled on steel production lines! ?irst# data set was restricted to observations on very specic type o production process! -econdly# they developed a model o that particular production process based on personal visits to each o the production line !Thirdly they obtained longitudinal data on each production line to estimate all the efects models that investigate changes in the overall productivity with in production lines due to particular changes in employment practices!
Their primary limitation o the study was that it will reCect wor9 practices and perormance outcomes in only one industry!
They ound out at the rst instance that 1R2 have large efects on productivity# while changes in individual wor9 practices have somehow little or no efect! The proo derived rom only one o its 9ind and systematically monthly panel data on productivity and 1R2 practices shows that innovative practices by 1R7 have certainly large efects on productivity !while changes on individual employment practices have no efect !
*n an article written by -am 7iller# he says that to enhance the employee productivity o an organiation it is necessary or the managers to boost employee satisaction and motivation towards their wor9 by giving them incentives because increasing wor9er motivation and satisaction can promote better productivity# produce efective# eDcient and loyal wor9ers# boost higher Euality o wor9 and ma9e them stay longer in the business! 1e also says that achieving good# Euality employee perormance depends on how much opportunity is provided to the employee or their individual growth and achievement as well as recognition# responsibility and reward! -uggested by -am
7iller Remuneration is the primary reward one can give to the employee! 1e also says that not all employees who get at salaries and promotions can increase productivity instead wor9ers may be able to become more eDcient with air pay matching to their perormance!
*n another article by
This article is about Training F 2evelopment# Gov# 0 by 2eborah A!?! =oehle ! At rst glance this article tells that organiation6s aim is to ma+imie their prot or this they always need better perormance by their employees to increase production and customer satisaction level! ;rganiations consider R F 2 as the essential part o their organiation!
A-T26s trac9ing o e+penditure depicts that organiations are increasing investment in human resource development! The average number o employee learning per hour is increasing day by day as the organiations are investing more! According to A-T26s report spending on in house training are more but they are not gaining as much benet as compared to ratio o investment! The training that is out sourced brings more benets to organiation! The mo re strategic view o the company is that company hires the chie learning oDcer or training!
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*t tal9s about the organiational eforts or human resource development and includes the varying eforts toward the establishment o a separate 1uman Resource department or section or training employees!
*n a cross4sectional study conducted in "ritain and *ndia# it was ound that the 1R training specialists held the 9ey responsibility or training employees! *n addition it was ound that at times the line managers or the supervisors were also responsible or assuming the responsibility o training and development (Hadapadithaya and Iim -tewart'!
This article concludes e+ploratory research# A -tudy ?ocusing on the ;rganiations o *slamabad in a9istan by -aima Atab!
A study conducted in a9istan revealed that ma5ority o the organiations situated in *slamabad had a proper 1R department! Amongst this ma5ority# many had a 1R2 department at the time o their incorporation! *t was ound that in the absence o 1R2 department the department or administrative afairs was responsible in assuming the responsibility o training and development! *n addition it was ound that number o respondents had also previously wor9ed in the 1R2 department in diferent managerial capacities such as 1R 7anager# Assistant 1R manager# 1R 1ead o -ection# ersonnel 7anager# >eneral 7anager and 7anaging 2irector and director administration (-aima Atab 0&'!
7oney allocated or training purposes is another measure o the organiations commitment in training and development o its employees! This entails the total amount o salaries and other benets paid to the employees (payroll'# the total number o employees who received ormal training# the total amount o e+penditure incurred by the company on ormal training o employees# the total number o training days accounted or ormal training# and the total number o training or 1R2 staf involved in running training or 1R2 department!
1uman resource development has become an integral part o the modern day organiation or as a core support activity in all other parts o the organiation! Jhen an organiation decides or training and development# it has to analye certain costs that need to be categoried into direct@indirect# micro and macro costs!
*n a9istan the budget allocated or the training o both the managerial and technical staf has increased over the years but or the clerical staf and manual wor9ers it has seen a minimal decline (-aima Atab 0&'!
This article is by eter 7iller and Teresa 7archant it elaborates the new training methodologies that diferent companies can adopt in order to establish efective productivity !;nline training is a new phenomenon that has emerged in recent years! *t ound increasing acceptance in -736s or its several benets amongst which the most important is the reduced cost o training# accessibility# and potential to meet the -736s need! ;n the other hand# in large and medium manuacturing rms it is already an established phenomenon! "ut still employee training awareness level is very low (3libeth and "rown! 0K'! The training methods vary with the diference in the industrial characteristics! ;n the 5ob training methods are more amous amongst the traditional manuactures but of the 5ob training methods are applied in services and *T related industries (9itya and eter!0%'! Another study conducted in Thailand showed an opposite result that highly educated cohort o -73 owners@managers with greater durability o business rarely invested time and money to train the employees# rather they emphasied in using ;n the Iob training methods that are inormal and unstructured in nature! This habit can be attributed to the low comple+ity o operation involved in -73 business (=etiya and eter 0%'! ;ne thing that should be considered is that although reEuisite allocation o unds are essential or the training and development o employees but it does not mean that a huge budget is the 9ey to successul training and development! *t is not essential to increase the Euantitative indicators rather what is more important is the Euality o training given to the employees
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2espite o new developments there are increasing issues and challenges that need to be addressed! The critical issues that are aced by the 3uropean and Asian countries are creating an evaluation system or training and development which should be reliable and valid# and integrating training and development with the rm strategy or dynamic management! The other ma5or challenges were the rm6s ability and willingness to commit ma5or resources efectively and sort out adeEuate time to TF2 to bring cooperation and support o the line manager to lin9 organiational# operational# and individual training needs in order to clearly establish connections between strategic business ob5ectives and TF2 activities! To hold employees ater training the new economic and business environment is characteried by worldwide competition which is inCuenced by modern corporations in proound ways!
?irst# progressive organiations must achieve higher standards o productivity# Euality# and efectiveness in order to survive in the new environment! -econd# companies must adapt or change their business strategies to ta9e into account the new realities o intense global and domestic competition! ?inally# corporate cultures# many o which were ormed in a regulated or monopolistic environment must be altered or the challenges o a competitive environment!
*n this conte+t# corporate training and development is recognied and valued by most o the successul organiations as a powerul competitive tool!
*n this article the dynamic model o training and turnover in organiations both conrms the empirical observation that the two variables training and productivity are interlin9ed and reveals how the connections might be understood! *n addition the empirical data on rms provides diferent ways to understand how the interaction between diferent variables# such as turnover# training# enterprise sie# and productivity# comes about and evolves over time!
*t also tal9s about the periods o slow growth and a wea9 economy and during that time corporations commonly cut programs to maintain protability! Training programs in particular are oten targeted because employee turnover is generally higher during times o economic uncertainty (;3<2 $%%/'!
3ven in the best o times# organiations must decide how much to invest in on4 the45ob training# balancing the benets o increased productivity against the costs o training! "ecause trained wor9ers can migrate easily between competing rms# another rm can potentially benet rom the increased productivity o wor9ers trained by the ormer employer without paying the costs! ?or e+ample# a survey o metalwor9 rms in Jisconsin indicated that managers a re reluctant to train their wor9ers because they ear competitor rms will lure their employees away beore their investment costs are recouped (Iobs or the ?uture $%%$'!
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