Article title: Training and Development Program and its Benefits to Employee and Organization: A Conceptual Study Author's Name and Notification Background: i. Khawaja Jehanzeb, Department of Management, College of Business Administration, King Saud University, Riyadh, Saudi Arabia Department of Management and Human Resource Development, Universiti Teknologi Malaysia, 81310 Johor, Malaysia ii. Dr. Nadeem Ahmed Bashir Department of Management, College of Business Administration, King Saud University, Riyadh, Saudi Arabia Article titles and related information: European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.2, 2013 COMPREHENSIVE REVIEW This paper discusses related to a conceptual study established on the employee training and development program and its benefits. The paper inspect the structure and elements of employee training and development program and present what are the positive outcomes for employees and organizations. Organizations find it difficult to stay competitive in recent global economy. Importance of employee development program is growing for the organizations those pursuing to receive an advantage among competitors. Employees are esteemed resource of the organization and success or failure of the organization relay on the performance of employees. Therefore, organizations are financing large amount on employee training and development programs. Furthermore, in training program it is supportive for companies to emphasis on knowledge, expertise and ability of employees. There is substantial discussion among professionals and researchers on the affect that development program has on both employee and organization. The study described here is a vigilant assessment of literature on fundamental of employee development program and its benefits to organizations and employees 1 Researchers have been focusing in his writings about the Training and Development Program, Components of Training and Development Program, Individual Benefits from Training and Development Program, Organizational Benefits from Training and Development Program, and Suggestion for Future Research THE MAIN ISSUES RAISED BY THE AUTHOR: Based on the findings of researchers, the author has concluded that training and development can provide a variety of benefits to the employees and the organization. Among the benefits to the employee training program is in terms of career competency, satisfaction of employer and employee abilities. While training and development program affects the organization in the event of an increase in the market, increase organizational performance and employee retention within the organization. Proposed model of the study (1) Individual Benefits from Training and Development Program In the author's view, there are three advantages gained by each individual involved in Training and Development Program. i. Career Competencies Employee development program help employees to survive in the future and develop their abilities to cope with new technologies. Employees get a lot of benefits from the employee training and development program. They learn the soft and technical skills as required by their jobs. Most of the employees recognize the importance of training program and would like to increase their salary. It is also expected from the fresh graduate not appropriately equipped for the continually changing business environment. Young professionals with entrepreneurial ambitions know that they have shortage of experience and 2 money; hence they attempt to join companies which provide training programs to prepare their employees for the betterment of future. Employees understand that training program can directed to superior duties and higher remuneration . Furthermore, helping workers to improve their skills and knowledge to cope with the future requirements, lead to job satisfaction. ii. Employee Satisfaction Employee feels comfortable and wants to stay with their organization, when they feel they are putting their efforts and skills in the bottom line for their organization. Employees who are satisfied with their jobs, believe that their work has a purpose and important for their organization. Usually the best performers do not leave a job for the purpose of financial benefits. Though salary and benefits plays an important part in selecting and retention of the employees, employees are always observing the opportunities to acquire novel skills, to get the encounter of different duties, and looking for personal and professional development. Loyalty with the organization cannot be calculated but it is substantial to intrinsic reward that employee feel. iii. Employee Performance Psychologically practicing tasks permitted trainees to grow learned knowledge, abilities and task. employees. Training is positively effects on the employee performance of the Technical and professional skills are very important for the employees to perform a job in an effective way. Providing training opportunities to employees can enhance the performance of the employees. (2) Organizational Benefits from Training and Development Program i. Market Growth Organizations can utilize employee training and development programs to improve their appearance as best employer in the job market. Employee development programs are important for any organization to stay solvent and competitive in the market. Though it is expensive for the organization to spend the money on their employees but this investment is positive for the organizations to hold the place in the market. ii. Organizational Performance 3 The current research proposed that the facility of training and development program is likely taken consent by employee that their organizations need to enter a social exchange with them. This social exchange agreement produces a durable psychological bond between employee and organization. Training has been defined as mainly contributing factor to the organizational effectiveness. Exploration on this topic recommends that investment in training and development program can be justified by the impact it creates to developed individual and organizational effectiveness. To evaluate the effectiveness of training and development program it has been advised that check directly the relationship of training and organizational commitment. Further it has been revealed as certainly correlated to the efficiency of the organization. iii. Employee Retention Companies which are providing training and development programs to their employees are getting success in retaining them. Sears has established that in localities where manager provide help to their employees to develop professionally, turnover is almost 40-50 percentage fewer than those stores where association with the managers does not available. Several organizations have revealed that one of the characteristic that help to retain employee is to offer them opportunities for improving their learning. Therefore, it has confirmed that there is strong relationship between employee training and development, and employee retention. Companies should realize that experienced employees are important assets and companies have to suffer the challenge for retaining them. OPINION OF REVIEWERS Training is a program that helps employees learn specific knowledge or skills to improve performance in their current roles. Development is more expansive and focuses on employee growth and future performance, rather than an immediate job role. Training and development is a function of human resource management concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. Training has been known by several resource development", and "learning and development". achievements of a business. names, including "human Training is essential to the Perhaps its most positive benefit is better employees. A company or the organization develop the potential of an employee, and part of the way a 4 company encourages improvement is through training. Often, good training is just as important as a good benefits package for an employee. Most organization or company wouldn’t hire unqualified employees. But so many of them do employ underqualified workers. Sometimes employees become underqualified due to changing technology or the development of new methods. The two biggest resources used for job training are time and money. Training employees costs time, money, and materials. Often, third parties are needed to conduct job training. Not only will there be missed time and unbillable hours, but there will also be additional costs. Another reason the company often neglect to train employees is because of past training experiences. Sometimes the training was done poorly, or the topics just didn’t help. That could happen for several reasons. Failed training comes at a high cost, and businesses often don’t want to take that risk. However, if the employees are not well train, it also comes at a cost. There are six reasons untrained employees can end up costing more than trained ones: i. Untrained Employees is Unhappy Employees Employees who feel inadequate, underachieving, or unsupported are unhappy. They aren’t satisfied in their work, which will cause them to underperform, make mistakes, and not care about their work product. That costs the business in lost time and money. ii. Untrained Workers Have a Low Production Value The quality of their work is lower and of less value. The quality in performance is lower than it could (or should) be. iii. Untrained Workers Are Inefficient More time (and therefore money) and effort is spent when employees aren’t fully or properly trained to perform their tasks or to fulfill their responsibilities. It takes them longer to do the work. iv. Lost Time/Money Due to Mistakes When an untrained worker makes a mistake, the time and materials used are lost. The work then has to be done again. Or worse, the inadequate product was delivered to the client. v. An Increase in Miscellaneous Expenses 5 These are more difficult to track or attribute to untrained workers, but they are there. Creating a CAD drawing incorrectly means reprinting the file. That means it takes more time to fix the mistake, more materials cost in paper and ink, and more time rechecking the work. If it were done correctly the first time, these costs wouldn’t be there. vi. Lost Customers Untrained employees can cause many of the mistakes listed above, and those mistakes and inefficiencies can cause our business to lose customers. That is the worst possible scenario, but it can happen. From the issues discussed by the author, I am of the view that the issues raised by researchers related Training and Development program is interesting and relevant. Based on the study, the researchers found that there are many benefits of training and development programs undertaken by the organization or employer for personal growth of employees and also for the growth of the organization itself. We take the fact of observation that training leads to important benefits for individuals and organizations. proposes that these The existing analysis of literature benefits vary from individual and organizational performance. To understand the benefits of training and development program, we have to implement different level and different disciplinary perspective of employee development program. The study also involved the discussion, how to increase the benefits of training. These features include giving attention to the training design, delivery, and transfer of training. After completing the study on this topic, i believed that it is very beneficial for the organizations to develop the employee development programs. If there is a systematic training and development program for the employees, the companies will harvest its profit from the market and remain competitive in the job market. An organized and efficient development program with supportive apparatuses will significantly assist the organizations to retain the most valued human resource, especially those who have a lot of experience with the organization. If organizations are capable to support all employees in meeting their requirements then both, employees and organizations will get the long term benefits. It is also very important for the organizations to timely evaluate the success of employee training and development program. However, research is required to recognize the features that enable a smooth transfer of employee development benefits on different level. Furthermore, some special questions of vertical transfer that how training and development directly influence on individual and 6 organizational level. A conceptual model of this process is available and there has been little empirical research on this topic (Kozlowski et al. 2000). Secondly, there is a gap existing between the applied and academic literature concerning the usage of cycle time as a factor to measure usefulness of training and development program (Holton 2003). The size of effect on the quality of performance may not the similar as individuals and organizations recognize and apply solutions to new problems. Organizations are realizing the benefits of employee training and development programs as they are receiving pressure from the competitor market. Research is required concerning the factors that can raise the awareness of the benefits of training and development at numerous stages of exploration. This research may get help from primary studies on the effects of training and development on novelty and performance adaptability of employees and organizations. HIGH-IMPACT EMPLOYEE TRAINING Each employer is certainly hopes to implement a program of staff training and development that led to high impact. In this respect, some measures to ensure the provision of training as expected proposed as follows: High-Impact Employee Training Towards fulfilling the aspirations of the organization to ensure quality impact, every organization must identify the objectives of the organization. The organizations must identify the business impact. The training must design and develop to meet the company’s overall goals. Keeping business goals in focus ensures training and developmen to make a measureable impact. Secondly, the organization must analyze skill Gaps that how the employees’ behaviors helping meet the business goal. By finding out what the gaps are 7 between employees’ current and ideal skills, the better pinpoint on what specific learning objectives should be. Layer Training Methods: The most effective training programs use layered, sustainable learning activities to create performance improvement over time. A layered approach makes sure our program targets the most essential employee, customer, and business needs, while training the right people at the right time in the right way. A layered approach is the best of all worlds because it blends learning experiences and training methods that maximize the benefits of our time. Lastly, we have to evaluate the effectiveness and sustain gains. Employees’ need for training and support doesn’t end when they return to the job. In fact, continued support makes that initial training stick. Measureable learning objectives are the foundation for us to evaluate an initiative’s impact. SUGGESTIONS FOR IMPROVEMENT This study is based on previous studies that have been done by previous researchers related training and development programs for organizations and employees. As such in improving the quality of research and writing, it is recommended that the authors carry out a field study to conduct face to face interviews with those involved in training and staff development programs. Researchers also can focus on the extent to which programs meet the needs of each organization. The findings obtained either qualitatively or quantitatively by researchers, will provide an opportunity for researchers to understand the trend of staff training and development programs more relevant and in accordance with the latest developments. Future research could build on this study’s results by measuring quantitatively the actual increases in job performance as well as the actual changes in job proficiency attitudes. This could be accomplished in a simple pretest–posttest design using a control group not having had the training as a comparison group. It would be valuable to connect perception to actual changes in job performance that can be quantified and measured. Attitude studies like this one are limited to representing what the person would be feeling should he or she be in that position, or try to recall what he or she felt when she actually was in that position. More actual behavioral data of this nature might convince upper level management to invest in employee development programs. It is important for employers to provide relevant and meaningful training for the employees, which supports and enhances employee attitude. When training is perceived by the employee to be relevant and meaningful, the results may be demonstrated through improved proficiencies. 8 CONCLUSION Having a trained workforce means our workers are learning new skills that can improve production, cut time spent in creation of our product (or service), reduce production costs, reduce mistakes, build confidence in our workforce, and create a better working environment. An investment in our employees’ skill sets is an investment in our company or organization. When everyone gets better, everyone in the organizations will gets better too. In short, future research on this topic might be extent that which training opportunities are observes as a message that the organization cares for employees and create important message in current corporate world afflicted by downsizing and employee layoffs. References: Allencomm (n.d). Engaged Employees Provide the Best Customer Experience Retrieved Nov. 20, 2016, from http://www.allencomm.com/resource/what-is-employee-trainingdevelopment Debra L. Truitt (2011). The Effect of Training and Development on Employee Attitude as it Relates to Training and Work Proficiency. SAGE Journal DOI: 10.1177/2158244011433338 Holton EF III. (2003). Cycle time: a missing dimension in HRD research and theory. Hum. Resour. Dev. Rev. 2:335–36. Khawaja Jehanzeb., & Dr. Nadeem Ahmed Bashir (2013). Training and Development Program and its Benefits to Employee and Organization: A Conceptual Study. 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