Training: Human Resource Management and Economic Downturn Essay examples

3402 Words Oct 28th, 2013 14 Pages
"Training is a waste of time and money because it does not impact organizational bottom line and employees do not retain training material. Thus, when the economy is weak organizations should not spend money and other resources on employees training and development. Outline your arguments for or against this point of view."
Introduction
Training is one of the business activities that take place in nearly all organizations regardless of their industries. One of the incentives for them to launch a series of training activities is the fact that training can improve individual’s current skills and enable them to learn new skills (Mathieu, Tannenbaum & Salas 1992, p.828). According to Wu, Yeh & Hung (Wu, Yeh & Hung 2012, pp.
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2002, pp.67-71).
It is concluded that training impacts on the organization bottom line by influencing its productivity and it plays an important role on profit rising in the uncontrollable situation, i.e. the poor economy.
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Retention of employees
Reduction of costs is the main focus of organization during economic downturn; it explains the phenomenon that the turnover rate remains at the high level in the downturn. But, as a matter of fact, people are the most valuable assets to an organization (Jackson 2007, p.399), so organization ought to undertake some actions to maintain a low turnover rate in this critical period.
Normally, organization merely focuses on the skill enhancement and monetary return result from training. They often overlook the negative correlation between training and turnover .The fact that organizations with high net training costs have longer employment period has been discovered many years in organizations (Franz & Zimmermann 2002, p.424), including Marriott Corporation, Florida Power Corporation and Target (Glance, Hogg & Huberman 2013, p.85). To understand why training and turnover is correlated, investigation on employees’ commitment and job satisfaction has conducted.
According to Arthur (Arthur 1994, p.670), the more investment on commitment system, such as training, the lower turnover rate as a result. Through training…

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