01. Employee Training & development in Finance industry

Any institution of higher learning or business whose objectives are to survive and prosper in this present day diverse and regressed economy has found it imperative to invest in ongoing training and development to improve proficiencies in production as well as to acquire the greatest return in investment of human capital (Knoke & Kalleberg, 1994) & Kalleberg, 1994). Although this area of training effectiveness seems paramount, and although training is an important part of the employer–employee connection, Knoke and Kalleberg (1994) suggest direct indication about company training applies based on affectionate samples of various employing organizations is almost non-existent. Furthermore, several authors have proposed that training is most general only in institutions which operate in multifaceted market situations (Rowden, 2005) den & Conine, 2005; (Sahinidis & Bouris, 2008). In addition, Rowden and Conine (2005) indicate that there is limited research on human resource development in small and middle businesses. According to these authors, most people belief that slight companies do little, if any, advance of their workers. Moreover, Rowden and Conine cite Training Magazine, which annually traditions research on the training industry in the United States, as not even attempting to contact businesses with fewer than 100 employees. In addition, in their annual research sample, only 16% entailed of companies between 100 and 500 workers. In general, little human resource development occurs in small businesses ( (Hill & stewart, 1999). In summary, a slowly rising number of authors are formerly doing more research in the areas of training and development and its effects on employees that we have not seen in past literature.

Months of research unsuccessful to discover gals signal in support of involving training and attitude, its impact on job competences, and the employee’s discernment that lack of meaningful training directly disturbs proficiencies and attitude. The impartial of this study is to fold and provide experiential data for training relationships that are not currently available (Chiaburu & Teklab, 2005) also discuss the importance of training and its impact on job performance:

While employee performance is one of the central measures highlighted by the top management, employees are more worried about their own productivity and are gradually aware of the accelerated uselessness of knowledge and skills in their turbulent environment. As the literature suggests, by effectively training and developing employees, they will become more aligned for career growth—career potential enhances personal motivation To illustrate (Cheng & Ho, 2001) position, Constantino and Merchant (1996, p.22) comment that “both training and education are required components for a successful conflict management system ” One might clearly imagine how failure to offer training and education by the organization can result in battle between employer and employee. Such battle could potentially lead to any number of difficult scenarios, including but not limited to formal criticisms by the employee which finally become genuine law outfits against the organization, all of which could cost the industry time, energy, and money. When universities or businesses withhold opportunities for training and development, they also fail to demonstrate an understanding of how to identify organizational conflict. According to these same authors, all organizations should have a conflict management system in place ( (Constantino & Merchant, 1996). When conflict is manifested in the organization by clusters of employees who are dissatisfied, this group dissatisfaction state of mind can result in frenzied chaos, displeasure, grievances, and turmoil in the organization. Again, having a conflict management system in place would potentially be able to short circuit such a disruptive process. Clearly, it is extremely imperative that employees benefit from ongoing employer provided training. “One of the most frequently encountered human capital development interventions is training” (Campbell & Kuncel, 2001). To enhance job performance, training skills and manners have to be moved to the workplace, maintained over time, and generalized across contexts (Holton & Baldwin, 2000). Consequently, definite job training is a complicated matter and has been the focus of much of the training literature (Chiaburu & Teklab, 2005). More specifically, in addition to the exact nature of job training, training is seen as relevant to encouragement a positive relationship between learning satisfaction and the effectiveness of applied learning (Liu, 2002); (Wang, 2001). As an aside, even though authors have suggested that training programs are vital to organizations (Knoke & Kalleberg, 1994; Liu, 2002; Wang, 2001), training programs are often the first to go (Young, 2008). This trend to cut training programs during poor economic times seems shortsighted, if in fact, training does affect job proficiency and relieves workplace conflict. The definition of results and empirical data included in this study demonstrates that employee do, in fact, perceive that training directly effects job proficiency is an indicator which many employers interested in sound business management and growth in the marketplace should subscribe to initiating and maintaining offerings of soft skill (leadership, effective communications, and coaching) and technical proficiency training.

Moreover, several authors have also written about the importance of staff development. Both formal and informal training opportunities are thought to provide a forum for the development of talent. When talent is fostered and nurtured, competitive advantages in performance are untainted ( (Becker, 1996); (Bowling, 2007); (Davenport, 2006); (Peters & Waterman, 1982). Furthermore, the organizational commitment or “the relative strength of an individual’s identification and involvement in a particular organization” (Pool & Pool, 2007,p. 353) depends on effective training and development programs. According to these authors, organizations demonstrating keen insight make provisions for satisfying the training needs of their current workforce. (Cheng & Ho, 2001) indicate that adequate training produces marked improvements in employee communication and proficiency of performances as well as extending retention time. Moreover, when programs target communication skills with coworkers, there are significant increases in profit as well as a greater number of reported positive working relationships that are formed. Employees with good communication skills gather more information concerning procedures and technologies related to job performances, thus assuming greater accountability and subsequent responsibility, both of which effect improve proficiency ( (Adams, 1989); (Gordon, 1977). Also, training and education have been shown to have a significant positive effect on job involvement, job satisfaction, and organizational commitment ( (Karia & Hasmi Abu Hassan Asaari, 2006).

Similarly, (Ahmad & Karia, n.d)ria (n.d.) have emphasized the relationship between training and attitude as it relates to working with others. Employees with positive attitudes become stakeholders in the process and job accomplishment is of a higher priority. Furthermore, successful organizations achieve a partnership between workers and management. The partnership includes participation in teamwork activities and continuous learning application. The reported findings further suggest that an employee’s participation in decision making and problem solving develops organizational trust (Anschutz, 1985).

Corporations and businesses need to grow and innovate continuously, pursue sustained development, and cope with rapid changes in their external environments as well as increasingly competitive international markets. Hence, organizations need to strengthen or expand the knowledge base, skills, and abilities of their employees. For this purpose, education and training must be incorporated into a systematic and formal system if the goals of employees and corporation are to be attained (Liu, 2002); (McGehee & Thayer, 1961).

Training, as defined in the present study “is the planned intervention that is designed to enhance the determinants of individual job performance” ( (Chiaburu & Teklab, 2005). Training is related to the skills an employee must acquire to improve the probability of achieving the organization’s overall business and academic goals and objectives. Positive training offered to employees may assist with reduction of anxiety or frustration, which most employees have experienced on more than one occasion during their employment careers (Cheng & Ho, 2001).

According to (Tsai, et al., 2007)) employees who are committed to learning showed a higher level of job satisfaction that has a positive effect on their performance. Moreover, Locke defined job satisfaction as a pleasurable or positive emotional state resulting from a positive appraisal of the job or job experiences (Locke, 1976). The literature suggests that commitment results from adequate training and development for successful job completion and an increase in job performance (Tsai, 2007).

In addition, the larger the gap between the skills required to perform a task and the actual skills available for performing a task, the greater the lack of job satisfaction and the greater the increase in employee turnover within the organization. Conversely then, not having the skills to perform a job correctly can set up employees for failure and put the business at a less-than-competitive disadvantage. The resulting high turnover would predict the need for even more training that would then have a direct impact on the bottom line of any business.

Moreover, poor performance reviews due to inadequate job training can produce employee dissatisfaction and conflict. Although there is no direct link in the literature between training and job satisfaction, (Rowden & Shamsuddin, 2000) and (Rowden & Conine, 2005) argue that the most thoroughly trained employees will better satisfy the needs of their customers and employees.

In summary, although the literature strongly suggests a direct relationship between job training and job performance as well as job training and employee attitudes, there is little empirical support for this suggestion. Clearly, there is a need to provide such empirical support. The purpose of the present study was to explore the relationship between training and development and its perceived impact on employee attitudes and perceived job performance proficiencies. The pragmatic data suggest a perceived gap by the employees between training attitudes and job proficiencies. This gap could then result in conflict between the employee and employer relationship. The present study elaborates and extends previous research by exploring participant attitudes in an academic institution as well as in three businesses, one of which is a small-to-moderate size business that is usually overlooked in other research studies. The hypotheses in this study specifically address the relationship between employees with training experiences who have positive attitudes about training (training attitudes), and those positive training attitudes are perceived to improve job proficiency.

References 

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Becker, B., 1996. The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, Volume 39, pp. 779-801.

Bowling, N. A., 2007. Is the job satisfaction–Job performance relationship spurious? A meta-analytic examination. ournal of Vocational Behavior, Volume 71, pp. 167-185.

Campbell, J. P. & Kuncel, N. R., 2001. Individual and team training. In Anderson. Handbook of industrial, work and organizational psychology, pp. 278-312.

Cheng, E. W. L. & Ho, D. C. K., 2001. The influence of job and career attitudes on learning motivation and transfer. Career Development International, Volume 6, pp. 20-27.

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Chiaburu, D. S. & Teklab, A. G., 2005. Individual and contextual influences on multiple dimensions of training effectiveness. Journal of European Industrial Training, Volume 20, pp. 282-290.

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