The Effects of Training and Developing the Workforce on the Organization Performance

2089 Words9 Pages
The environment in which most organizations operate today is continuously changing, and the rate of change is increasing. Almost most organizations are now involving in tremendous increase in international business and foreign assignments. Training and developing the workforce offer an interesting case of change for any organization in light of uncertain and rapidly changing environment. Many researches argue that training and development programs increase the organizations' performance and effectiveness. Toward a better understanding of the effects of training and development in the workplace, this research points out the importance of training and development the workforce, determines the major types of training and development
…show more content…
Having formulated a new strategy, an organization may find that it needs to either hire new employees or retrain the current employees to implement the new strategy. A study of 51 firms in the United Kingdom found that 71% of leading companies rated staff learning and training as important or very important compared to 62% of other companies. Another study of 155 U.S. manufacturing firms revealed that those with training programs had 19% higher productivity than those with out such a program. Another study indicated that a doubling of formal training per employee resulted in 7% reduction in scrap. Training is especially important for a differentiation strategy emphasizing quality or consumer service. For instance , Motorola, with annual sales of $17 billion, spends 4% of its payroll on training by providing at least 40 hours of training a year to each employee. There is a very strong connection between strategy and training at Motorola. For example, after setting a goal to reduce product development cycle time Motorola created a two-week training source to teach its employees how to achieve that goal. It brought together marketing, product development, and manufacturing managers to create an action learning format in which the managers worked together instead of separately.
The company is especially concerned with
Get Access