Importance of employee training and development in organizational growth

As businesses grow and compete in today's fast-paced environment, employee training and development has become crucial factor in achieving organizational success. Employee training and development programs are designed to enhance employees' knowledge, skills, and abilities, which in turn, help organizations to improve productivity, quality of work, and employee satisfaction.

Knowledge management involves the storage and sharing of an organization's accumulated wisdom, understanding, and expertise related to its processes, techniques, and operations. This approach treats knowledge as a crucial resource, as Ulrich (1998) notes, "Knowledge has become a direct competitive advantage for companies selling ideas and relationships." Essentially, knowledge management encompasses any process or practice that involves creating, acquiring, capturing, sharing, and utilizing knowledge, regardless of its location, to improve organizational learning and performance, according to Scarborough et al (1999). Scarborough and colleagues suggest that knowledge management focuses on the development of firm-specific knowledge and skills that result from organizational learning processes.

Knowledge management aims to enhance organizational effectiveness by transferring knowledge from those who possess it to those who require it. As it has been rightly said, "The ability to collect, leverage, and effectively use knowledge will become a significant source of competitive advantage in many businesses in the coming years." To become a successful enterprise, it is essential to create a knowledge-based culture. Learning and development represent the process of gaining and honing knowledge, skills, capabilities, behaviors, and attitudes through various methods, such as experiences, events, programs, guidance and coaching by line managers and others, as well as self-directed or self-managed learning activities. The objective of learning and development is to ensure that the organization has a knowledgeable, skilled, and motivated workforce, equipped with the necessary skills and expertise required to excel.

Resource: Armstrong, 2012

The primary goal of employee training and development is to create a skilled and competent workforce that can meet the changing demands of the business environment. By investing in employee training and development, organizations can improve the quality of work, reduce errors, and increase efficiency. Moreover, trained employees are more likely to be engaged in their work, which leads to higher job satisfaction and lower turnover rates.

Learning: As defined by Honey and Mumford (1996), refers to the process by which individuals acquire new knowledge, skills, insights, and realizations that were previously unknown to them. It involves both cognitive and practical elements, enabling individuals to not only gain factual information but also develop skills that were previously beyond their capabilities. Learning is an ongoing process that contributes to the enhancement of existing competencies and the development of new knowledge and skills that prepare individuals for greater responsibilities and challenges in the future.

Development refers to the process of ensuring that an individual's abilities and potential are nurtured and expanded through various learning experiences, including self-directed or self-managed learning. It represents an ongoing and dynamic process that allows people to advance from their current level of understanding and capability to a future state where higher-level skills, knowledge, and competencies are required. In other words, development involves a continuous progression towards greater personal and professional growth, which requires a commitment to lifelong learning and self-improvement.

Training refers to the formal process of providing individuals with the knowledge and skills necessary to perform their job roles effectively. It involves a structured approach to learning that typically follows a pre-defined curriculum or syllabus. While training is an important tool for promoting learning within an organization, it should be distinguished from the broader concept of learning. As Reynolds et al (2002) explain, learning involves the process of constructing new knowledge, skills, and capabilities, whereas training is just one of several methods that organizations can use to promote learning. Essentially, training represents a specific approach to learning, whereas learning encompasses a much broader range of experiences and activities that contribute to individual growth and development.

A learning and development strategy should be designed to support the achievement of business goals by promoting human capital advantage, while also taking into account the needs and aspirations of individuals to grow and develop. In other words, it should be business-led and people-led, with a focus on achieving the best possible outcomes for both the organization and its employees.

The concept of the learning organization has gained popularity in recent years, with many experts describing it as a place where continuous learning is encouraged among all members. According to Senge (1990), a learning organization is one where people are constantly expanding their capacity to create the outcomes they truly desire, where new patterns of thinking are nurtured, and where collective aspirations are set free through the process of learning together.

Pedler et al (1991) describe a learning organization as one that facilitates the learning of all its members and continually transforms itself, while Wick and Leon (1995) define it as an organization that continually improves by rapidly creating and refining the capabilities required for future success. Another significant benefit of employee training and development is that it helps organizations to stay competitive in the market. In today's global marketplace, businesses must constantly adapt to new technologies, market trends, and consumer demands. By providing their employees with the necessary training and development opportunities, organizations can ensure that they remain up-to-date with the latest industry developments and trends.

One example of employee training and development in Sri Lanka is the "Vocational Training and Skills Development Project" funded by the World Bank. This project aims to enhance the employability and productivity of Sri Lankan youth by providing them with vocational training and skills development programs in key growth sectors such as construction, hospitality, and manufacturing. The project focuses on improving the quality of training programs and ensuring that they are aligned with the needs of the industry, as well as providing training to trainers and improving the capacity of training institutions. By investing in the skills and competencies of the workforce, this project aims to improve the quality of work and productivity in Sri Lanka's key industries, ultimately contributing to the country's economic growth and development.

Employee training and development programs also play a crucial role in talent management and succession planning. By investing in their employees' development, organizations can create a talent pipeline that can fill critical roles and ensure business continuity. This also helps to create a positive organizational culture, where employees feel valued, and opportunities for growth and development are provided.

Moreover, employee training and development programs also help to improve employee retention rates. Employees who receive training and development opportunities are more likely to feel valued, engaged, and motivated. As a result, they are less likely to leave the organization in search of better opportunities. However, to maximize the benefits of employee training and development, organizations must design effective training programs that meet the specific needs of their employees. Effective training programs should be designed to address the skills and knowledge gaps of employees, and they should be delivered in a way that is engaging and interactive.

In conclusion, employee training and development are essential components of organizational growth and success. By investing in their employees' development, organizations can improve productivity, quality of work, employee satisfaction, and competitiveness. Moreover, effective employee training and development programs can help organizations to create a skilled and competent workforce, improve talent management, and succession planning, and improve employee retention rates.

References: 

Armstrong, M. (2012). Armstrong's Handbook of Human Resource Management Practice. London: Kogan Page.

Honey,  P  and  Mumford,  A  (1996) The  Manual  of  Learning  Styles,  3rd  edn,  Honey  Publications, Maidenhead

Pedler, M, Burgoyne, J and Boydell, T (1991) The Learning Company: A strategy for sustainable development, McGraw-Hill, Maidenhead

Reynolds, J, Caley, L and Mason, R (2002) How Do People Learn? CIPD, London

Scarborough,  H,  Swan,  J  and  Preston,  J  (1999) Knowledge  Management:  A  literature  review,  IPM, London

Senge,  P  (1990) The  Fifth  Discipline:  The  art  and  practice  of  the  learning  organization,  Doubleday, London.

Ulrich,  D  (1998)  A  new  mandate  for  human  resources, Harvard  Business  Review,  pp 124 – 134.

Wick, C W and Leon, L S (1995) "Creating a learning organization: from ideas to action," Human Resource Management, Summer, pp 299–311