Effects of Training and Development investments on Learning and Innovation in Organizations
The growing
recognition of the specific significance of human capital development in
enterprises has prompted researchers to investigate the link between training
techniques and key performance indicators (Tharenou, Saks and Moore, 2007). The
ability to utilize present knowledge and information to develop new
combinations and modifications is a major source of innovation (Cantner, Joel
and Schmidt, 2009). The investments a company makes in training and development
establish a culture of continuous learning that encourages people to share
their expertise and ideas, supporting the emergence of new knowledge and
innovation (Lau and Ngo, 2004).
There are
two types of training investments: corporate training expenditures and
financial assistance for training, which take into account the various kinds of
organization-provided training and take into account the varied growth
objectives. The former is oriented toward external training to increase overall
employee competence over the long term, whereas the latter is aimed toward
firm-specific, intensive interval training for rapid performance
improvement.
Despite the
fact that these two types of training investment may fulfill similar objectives
in terms of generating learning and, ultimately innovation they demand independent
analysis because they represent diverse resource allocation patterns in firms
and various methods in which human resource development activities drive
organizational innovation. These two must be evaluated individually because
of exhibiting varied organizational resource allocation patterns and different
methods in which human resource development activities drive organizational
innovation (Sung and Choi, 2013).
The
investment in company-specific, in-house training focused on immediate skill
growth and performance enhancement that directly addresses an organization's
present and upcoming training needs is referred to as corporate training
expenditure (López, Peón and Ordás, 2006). This approach is created and made
available to participants in a variety of media and platforms (e.g., lectures,
workshops, site visits, and case analyses). Along with imparting new facts and
knowledge, company training promotes rapid and effective adaptation to new
tasks and task conditions encountered by employees, increasing employees'
receptivity to novel ideas and their ability to make constructive suggestions
for improvements that cannot be accomplished through their daily routine
(Aragón-Sánchez, Barba-Aragón and Sanz-Valle, 2003).
Unlike
company-sponsored training programs that focus on job-specific skills and
competencies that are tailored to a job and an organization, financial support
for education is frequently directed toward employees' self-development
initiatives to tackle their own needs and self-identified goals in terms of overall
task-related proficiency (Jacobs and Washington, 2003).
Financial
investment in corporate training improves organizational innovation
dramatically. Employee development through external training, on the other
hand, has a neutral or even negative impact on learning and innovation.
Companies can encourage employees to participate in group learning activities
by providing more corporate training. Supervisors commonly initiate and lead
shared learning strategies such as giving recommendations, using mentor-ship,
the knowledge management system, and conducting Six Sigma activities. At
different stages of innovation, including problem identification, idea
creation, concept promotion, and execution, researchers emphasized the need for
active learning and the quest for new knowledge. On-the-job training and
development can bolster such learning and knowledge management procedures by
providing employees with a breadth of perspectives, skills, expertise, and
extra insights, allowing them to expand their reservoir of innovative and
helpful ideas (Sung and Choi, 2013).
References
Aragón-Sánchez, A., Barba-Aragón, I. and Sanz-Valle, R., 2003. Effects of training on business results1. The International Journal of Human Resource Management, 14(6), pp.956-980.
Cantner, U., Joel, K. and Schmidt, T., 2009. The use of knowledge management by German innovators. Journal of Knowledge Management, 13(4), pp.187-203.
Jacobs, R. and Washington, C., 2003. Employee development and organizational performance: a review of literature and directions for future research. Human Resource Development International, 6(3), pp.343-354.
Lau, C. and Ngo, H., 2004. The HR system, organizational culture, and product innovation. International Business Review, 13(6), pp.685-703.
López, S., Peón, J. and Ordás, C., 2006. Human Resource Management as a Determining Factor in Organizational Learning. Management Learning, 37(2), pp.215-239.
Sung, S. and Choi, J., 2013. Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations. Journal of Organizational Behavior, 35(3), pp.393-412.
Tharenou, P., Saks, A. and Moore, C., 2007. A review and critique of research on training and organizational-level outcomes. Human Resource Management Review, 17(3), pp.251-273.
.jfif)
.jfif)
Employees can have ideas, Organization should have an innovative culture. Creativity alone is not enough to formulate good ideas and pursue them for market maturity. This requires specialized knowledge. The knowledge has to train to an employee to get an innovative outcome. The training converts the idea into a real innovative outcome. For that competency is needed.
ReplyDelete1) Formulate and evaluate ideas
2) Managing the innovation project
3) Moderating the process from idea to market entry
4) Know the strengths and weaknesses of innovation methods
The literature has rather unnoticed organization-huge implications of monetary assistance for training, which can be due to the preceding cognizance of individual-degree effects. Considering that such assistance is obtainable handiest to a small fraction of personnel, the effective effects pronounced through personnel who are skilled in the advantages of organization-backed outside training ought to engender perceptions of relative deprivation and unfairness amongst the ones excluded from those unique advantages ( Sung, 2014)
ReplyDeleteReference
Sung, S.Y. and Choi, J.N., 2014. Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations. Journal of organizational behavior, 35(3), pp.393-412.
Innovation is often results from ability to utilize existing knowledge and information to make different combinations.(Cantner, Kristin and Schmidt 2008) The modern business world is highly volatile in innovations and creations in every single second. Training and development investment create pool of learning opportunities which exchange ideas and knowledge. Combination of ideas, data and knowledge take organisation towards novelty and diversity. Therefor better to consider it as a investment rather than cost.( Sung and Choi, 2013)
ReplyDeleteEmployee training and development programs are essential to the success of businesses worldwide. Not only do these programs offer opportunities for staff to improve their skills, but also for employers to enhance employee productivity and improve company culture. They also can reduce employee turnover and a 2020 Work Institute study shows just how important that can be for a company’s bottom line. Voluntary employee turnover, according to the report, costs U.S. businesses more than $630 billion annually. It’s no surprise that employees who get regular opportunities to learn, develop, and advance are more likely to stay with a company. Employee development is the continuous effort to strengthen work performance through approaches like coaching, training sessions, and leadership mentoring.
ReplyDeleteInnovation often results from the ability to utilize existing knowledge and information to generate different combinations and reconfigurations (Cantner, Kristin, & Schmidt, 2008). The training and development investments of an organization create a climate for constant learning that facilitates the exchange of knowledge and ideas among employees, thereby promoting the generation of new knowledge and innovation (Lau & Ngo, 2004).
ReplyDelete