Chapter-9:

Training & Development

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1. Introduction

We are living in a global village. Globalization creates opportunities and threats as well. In order to face the
challenges of globalization, local companies must be competitive. Productivity improvement is the only way
to address the challenges of globalization. Productivity depends on knowledge and its proper application.
Organizations need to invest more in their people to make them knowledgeable and competent. There is
an old saying that knowledge is power. Knowledge is becoming a primary source of competitive advantage.
The competitive advantage of a firm depends on the knowledge and skills possessed by its employees
(Drucker, 1991). We are living in a knowledge-based society. The modern economy is knowledge driven.
The 21st- century workplace is a fast-paced environment with new techniques, knowledge, and
opportunities appearing and disappearing at the speed of the internet. It is critical to keep employees
updated and up-to-speed on the latest developments in the field, and the only way to do that is by
providing training.

Every organization needs well-trained people to perform the activities that have to be done. If current or
potential job occupants can meet this requirement, training is not important. At the time of recruitment,
employees possess a certain amount of knowledge and skill. As time passes, their knowledge becomes
obsolete unless it is updated through proper training. Sometimes employees become under qualified due
to changing technology or the development of new methods. When this is the case, it is necessary to raise
the skill levels and increase the versatility and adaptability of an employee. As jobs become more complex,
the importance of employee training has increased. Competent employees do not remain competent
forever. Skills deteriorate and can become obsolete. Skilled and knowledgeable people are always in short
supply. This is why; organizations spend billions of dollars each year on formal training. Thus, employee
education and training are becoming an optimal answer to complex business challenges, and the
management of human resources is taking on a central role in modern management. Intensified
competition, technological change, and the search for improved productivity are motivating management
to enhance expenditures for training.

2. Concept of Training

Training is one of the most important functions of any HR department. It is a continuous process. Training
is the process by which people learn how to do a specific job properly. Training is the act of teaching or
developing in oneself or others any skills and knowledge that relate to specific useful competencies. It is an
organized activity aimed at imparting information or instruction to improve the employee's performance or
help him or her attain a required level of knowledge or skill.

Training is the process cess of providing the required skills to the employee for doing the job effectively,
skillfully, and qualitatively. Training of employees is not continuous, but it is periodic and given at specified
times. Generally, training is given by an expert or professional in the related field or job. Training is a
process by which the aptitudes, skills, and abilities of employees to perform specific jobs increase (Jucious,
1998). Training has been defined by different scholars of management. Some important definitions of
training are listed below.
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In the words of Dale S. Beach, "Training is the organized procedure by which people learn knowledge and
improve skills for a definite purpose." According to Edwin B. Flippo, "Training is the act of increasing the
knowledge and skill of an employee for doing a particular job." Employee training is increasingly required
to assist the work force in using modern tools, techniques, and materials in their jobs. Training is the art,
knowledge, and skill necessary to accomplish a specific job in a specific way. Training and development
programs are needed at all levels of an organization to improve the quality of the work of the employees.

3. Training and Education

Contrary to popular belief, training is not simply another name for education. Education is defined by
Merriam-Webster as the process of gaining knowledge, skill, and development from study or training.
Training, on the other hand, is defined by the Cambridge English Dictionary as the process of learning the
skills one needs to do a particular job or activity.

In a general sense, the term "training" implies the act of imparting a special skill or behavior to a person,
which is commonly offered to employees at the operational level. It is not exactly the same as education,
which is a process of systematic learning something in an institution that develops a sense of judgment and
reasoning in employees. It is offered to all employees equally, irrespective of their grades or level on the
corporate ladder.

The purpose of training is to improve the performance and productivity of employees. As opposed to
education, where the purpose is to develop a sense of reasoning and judgment, Training is the process of
learning something. The goal of training is to learn how to do a job perfectly. On the other hand, education
is a systematic process of learning something with the goal of acquiring knowledge. Training is short-term
and very specific. While education is long- term and broad. The term of education is longer than the
duration of training.

The concept of training is narrow, while the concept of education is comparatively wider. Education's goal
is to teach students about facts, events, values, beliefs, general concepts, principles, and so on. This helps
in developing a sense of reasoning, understanding, judgment, and intellect in an individual.

Education is less practical than training. Education is the methodical process of learning something with the
aim of acquiring information. Theoretical learning in the classroom or any institution is education. Training
is the process of teaching specific skills to a person. We learn about circumstances and issues in general
during our education. We develop abilities during training that can help us with practical challenges.
Therefore, training gives us more opportunities for actual work. While training is more specialized and
focused on teaching someone new skills, education is much broader.

Conclusion

It is also true that there is no training program that is conducted without education. Education is more
important for employees at higher levels than for those at lower levels. Although education is common for
all the employees, regardless of their grades, So, the firms should consider both
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elements, at the time of planning their training program because there are instances when the employees
need to take decisions regarding their work themselves, where education is as important as training.
4. Distinction between Training and Development
Training is a systematic program to increase the knowledge, skills, abilities, and aptitudes of
employees to perform specific jobs. Training is concerned with increasing the knowledge and
understanding of the total environment. Development is concerned with the growth of an
employee in all respects. Development programs seek to develop skills and competence for
future jobs, while training programs are directed toward maintaining and improving job
performance. Employee training is a program that helps employees learn specific knowledge or
skills to improve performance in their current roles. Employee development is more expansive
and focuses on employee growth and future performance, rather than an immediate job role.
While development programs focus more on broader skills, such as leadership, communication, and
decision making, employee, training, on the contrary, has clear, measurable goals that relate to improving
the productivity and accuracy of current processes. Thus, training is a process that increases employees'
aptitudes and abilities to perform 85 specific jobs on the one hand. On the other hand, development is the
process of increasing the general knowledge and understanding of employees. While development
programs increase employees' future performance and growth, employee training is more about learning
new skills and acquiring specific knowledge that employees can apply instantly to bring about significant
improvements in their current job roles.

Training
Training means learning skills and knowledge for doing a particular job. It increases job skills.
The term 'training' is generally used to denote imparting specific skills among operative workers and
employees.
Training is concerned with maintaining and improving current job performance. Thus, it has a short-term
perspective.
Training is job-centered in nature.
The role of trainer or supervisor is very important in training.
Development
Development means the growth of an employee in all respects. It shapes attitudes.
The term 'development' is associated with the overall growth of the executives.
Executive development seeks to develop competence and skills for future performance. Thus, it has a long-
term perspective.
Development is career-centered in nature.
All development is 'self development'. The executive has to be internally motivated for self-development
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5. Training Versus Learning
Learning and training are frequently used interchangeably. But there is a significant distinction between
learning and training. The primary difference between training and learning is that the former does not
seek to change, enhance, or broaden the perspective or behavior of the learner.
Training instructs the learner on how to carry out a given task by concentrating on it. Teaching specific
knowledge or skills is the act of training. Developing conceptual and general knowledge is the goal of
learning. The person gains knowledge about how to handle a particular situation today while
simultaneously learning how to be ready to creatively address a different difficulty tomorrow. Giving
information and knowledge to a learner in a way that teaches them is known as "training." This can be
done verbally, in writing, or through other means of demonstration.
6. Objectives of training
The importance of employee training for both new and experienced employees cannot be overemphasized.
Effective training of new employees results in employees who know what they're doing. It saves time, and
employees have a good feeling about the company. Training enables employees to be competent and more
effective in their work. According to Wright and Geroy (2001), effective training programs change the
competency level of an employee positively. Mathis and Jackson (2008) argued that training and
development are also a means for employers to address their employees needs. Robert (2006) stated that
effective training programs help employees acquire new technology that helps them perform their job
while at the same time gaining full command of the competencies and skills required to perform that
particular job with fewer errors and mistakes. Training is essential not only to increase productivity but also
to motivate and inspire workers by letting them know the importance of their jobs and giving them all the
information they need to perform those jobs.
Over the past few years, leading organizations have invested heavily in employee training and development
because the benefits of training to employers are immense and diverse. Employee training has recently
become a vital business strategy not only to retain employees, but also to create a skilled workforce for the
future (Simplileam, 2021). Training produces many benefits, both for the organization and the individual
employee. The main objectives of an effective training program are as follows:
To help the employee acquire basic skills to do his job properly.
To increase job satisfaction and morale among the employees. Amisano (2010) stressed that employee
performance depends on many factors like job satisfaction, knowledge and management.
To increase employee motivation,
To modify employee attitudes and behaviors.
To increase efficiency in processes, resulting in financial gains, to increase capacity for implementing new
technologies and methods
To help an organization to develop good successors.
To enhance the company's image.
To teach newcomers fundamental knowledge and skills
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To assist the employees in functioning more effectively in their present position by exposing them to the
latest concepts, information, and techniques and developing in them the skills required in their fields,
To build up a second line of competent officers and prepare them as a part of their career
progression to occupy more responsible positions. to broaden senior managers' minds by providing
opportunities for exchange of experiences within and outside the organization in order to correct the
narrow outlook that can result from overspecialization
Training creates a pool of trained and capable personnel from which replacements can be drawn to fill in
for the loss of key personnel due to retirement, etc.
It creates a feeling of confidence among the employees.
It provides the opportunity for quick promotion and self-development for employees;
It improves employees' chances of promotions and obtaining higher positions in the organization.
It increases retention intention of employees. Noe (2001) narrated that organizations that embrace
training and development practices are able to retain customers, suppliers, employees, stakeholders and
shareholders in the long-run
7. Importance of Employee Training
It is widely believed that training is not a cost but an investment. There is a famous conversation that
highlights the importance of investing in employee training and goes something like this: Person A asks,
"What if we spend money on training our employees and they leave?" Person B replies, "What if we don't
and they stay?!"This section highlights a few important reasons why employee training is a vital part of a
successful business. Safety first the right training can ensure that employees are using equipment correctly
and observing correct health and safety practices in the workplace. Any organization's effective
performance is heavily reliant on the performance of its employees; thus, employee training is unavoidable
in the organization and should not be overlooked or undervalued. Improved capabilities, knowledge, and
skills of the talented workforce have been proven to be the main source of competitive advantage in a
global market (McKinsey, 2006). Effective training programs help in building a supportive and conducive
learning environment for the workforce and, at the same time, help them to deal effectively with
foreseeable challenges easily and in time (Tai, 2006). Ahmad and Bakar (2003) pointed out that if training is
achieved on both an individual and organizational level, then it brings a high level of commitment on the
part of employees.
The biggest asset of any business is its employees. Successful organizations are aware of this, and they
know how important it is to invest in talent. Many studies show that companies that have dedicated
employee training and development programs see not only a sharp increase in profits but also have a high
level of staff retention, which is vital for sustained business growth. Employee training is worth the
investment because replacing talents is far more expensive than retaining existing ones. According to a
study conducted by Gallup, replacements can cost a company around 150 percent of a staff's annual salary.
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a. The right training gives employees the necessary skills and knowledge to carry out their work to the best
of their ability, increasing productivity and quality of work.
b. Things are continuously changing in the work place. Regular training means the business and its
employees don't get left behind and they stay working at their best, both today and in the future.
c. A driving factor behind employee engagement is training and development: improving the performance
of the staff, increasing staff retention and helping an organization to keep hold of its 'star players'.
Employee training is treated as a source of productivity
d. Training and development can give your employees an increased and more diverse skills set, meaning
they can take on additional responsibilities while supporting their own career progression.
e. Highly skilled employees can help your organization deliver higher levels of customer satisfaction
boosting your reputation in the marketplace and helping to secure greater customer retention.
f. In addition to external training, internal training is a pivotal way to share best practice within an
organization, develop common working procedures and strengthen internal relationships.
g. Training helps to retain the best employees. By being an employer that demonstrates a commitment to
staff development makes your organization more attractive when it comes to recruiting top talent
h. Training provides employees a genuine competitive advantage over the competitors. The only way you
can be better than your competitors is by your employees being better than the rest and training is a direct
route to achieving this.
i. Training creates scope for internal promotions. One of the major benefits of training to employers is that
employee training helps fill internal promotion positions. This is a cost- effective solution, as hiring new
talent is an expensive affair. Plus, your existing employees are well acquainted with the organization's
operations and work culture, so they can start working instantly.
8. Identifying the Training Needs
Today's work environment requires employees to be skilled in performing complex tasks in an efficient,
cost-effective, and safe manner. Training (a performance improvement tool) is needed when employees
are not performing up to a certain standard or at an expected level of performance. The difference
between actual the actual level of job performance and the expected level of job performance indicates a
need for training. The identification of training needs is the first step in a uniform method of instructional
design.
A successful training needs analysis will identify those who need training and what kind of training is
needed. It is counter-productive to offer training to individuals who do not need it or to offer the wrong
kind of training. A Training Needs Analysis helps to put the training resources to good use. The need for and
objectives of the training program should be identified before offering training to employees (Obisi, 2001).
Bad training design is nothing but a loss of time and money (Tsaur & Lin, 2004). It is very important for the
organization to design employee training very carefully (Armstrong, 2000). Organizations that develop
effective training designs based on the needs of employees and the organization always get good results
(Partlow, 1996).
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Training needs analysis seeks to answer the question, "Who, if any, needs training?" and what training do
they need? The questions may be very simple ones, but getting good answers to these questions
constitutes one of the most difficult steps in the total training process. A training need exists when an
individual lacks the knowledge or skills required for the execution of an assigned task satisfactorily. A
training needs analysis (TNA), also known as a training needs assessment, is a process that organizations
use to determine the gap between the current and desired knowledge, skills, and abilities of employees.
The purpose of a training needs identification exercise, therefore, is to identify the gap between required
and actual competencies so as to determine the kinds of training that would help bridge the gap (Asare-
Bediako, 2002). A training needs analysis is necessary for three reasons: it identifies employee knowledge
and performance gaps, helps organizations efficiently build a targeted training plan, and provides insight
into new training opportunities (e.g., different modalities and approaches).
It is important to assess whether there is a need for training. Two factors must be considered when
conducting a training needs analysis: job requirements and person requirements (Beardwell and Holden,
2010). The need for such an analysis usually arises due to an organizational problem. The problems can
potentially be resolved through training. This is where the training needs analysis comes in. This is not to
say that every problem can be solved through a training needs analysis on the contrary! Most problems are
caused by other organizational issues. Only when the problem is caused by a lack of knowledge, skills, or
attitudes can training, and the required training needs analysis, be a viable solution. The training needs
analysis is a process in which the gap between the actual and desired knowledge, skills, and attitudes
(KSAs) in a job is identified. Robbins and Decenzo (2010) suggest that management can determine the
training needs of an employee by answering four questions:
1. What are the organization's goals? The first step in TNA is to identify the short- and long-
term goals for your organization and the performance needed to achieve them.
2. What tasks must be completed to achieve these goals?
3. What behaviors are necessary for each job incumbent to complete his assigned tasks? The more specific
we can make the behaviors, the easier it will be to create training programs that fulfill the behavioral
dimensions.
4. What deficiencies, if any, do incumbents have in the skills, knowledge, or attitudes needed to perform
the necessary behaviors?
These questions demonstrate the close link between human resources planning and the determination of
training needs. Based on the organization's needs, the type of work that is to be done, and the type of skills
and knowledge necessary to complete the work, the training program should be developed naturally. The
training needs analysis is a process in which the gap between the actual and desired knowledge, skills, and
attitudes (KSAs) in a job is identified. A training needs analysis and subsequent training can help in solving
organizational problems that are caused by a lack of knowledge, skills, or attitudes. A training needs
analysis can be conducted in four steps such as define organizational goals; identify relevant job behaviors;
define the required knowledge and skills and design a training plan.
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Many needs assessments are available for use in different employment contexts. Sources that can help HR
managers determine which needs analyses are appropriate for their organizations include organizational
analysis, person analysis, work analysis, performance analysis, content analysis, training suitability analysis,
and cost-benefit analysis is content analysis, training suitability analysis, and cost-benefit analysis. Effective
training results in a return of value to the organization that is greater than the initial investment to produce
or administer the training.
9. Methods for Determining Training Needs
HRM experts (Dessler, 1999; Mathis and Jackson, 2006; Weather and Davis, 1998) have identified the
different methods for identification of training needs. These methods are listed below:
a) Observation and analysis of job performance;
b) Management recommendations;
c) Staff conferences and recommendations;
d) Analysis of job requirements;
e) Consideration of current and projected changes;
f) Surveys, reports and inventories;
g) Telephone interview,
h) Review of relevant literature.
i) Interviews.
j) Focus group and discussion,
k) Consultation with persons in key positions, and/or with specific knowledge
1) Job mapping. It creates a complete picture of the day-to-day tasks and expectations of an employee.
Once it has been determined that training is necessary, training goals must be established. Management
should state what changes or results are sought for each employee. These goals should be tangible,
measurable and verifiable. Goals should be clear to both, management and employee. Both should know
what is expected from the training effort.
10. Training Methods
Employee training is a significant part of an organization's growth and success. A well-trained workforce is
more productive and efficient at their roles, enabling them to contribute at a high level to their
organization. With the importance of effective employee training being obvious, the next step is to choose
the right employee training methods that are ideal for your overall organization, as well as individual team
members. Different types of employees methods come with different benefits, challenges, and goals. There
are different learning styles for different people some are visual learners, some need hands-on experience,
some require an instructor to guide them, etc. To find an employee training method that works best for
your workforce, HR managers need to understand their employees' learning style and consider other
affecting factors such as their training objectives, goals, cost, and timeline.
A careful use of training methods can be a very cost-effective investment in the sense of using the
appropriate method for the needs of a person or group (Beardwell and Holden, 2010).
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Training methods fall into broadly two categories:
On-the-job training or internal training
Off-the-job training or external training
On-the-job training (OJT) means having a person learn a job by actually doing it. OJT uses more experienced
and skilled employees, whether coworkers or supervisors, to train less skilled and inexperienced
employees. OJT is characterized by the following:
It has not been carefully thought or prepared;
It is done on an ad hoc basis with no predetermined content or process;
Trainers are chosen on the basis of technical expertise, not training ability;
Trainers have no formal training in how to train.
On-the-job training
Following methods are included -
A. Apprenticeship programs.
People seeking to enter the skilled trades to become, for example, plumbers, electricians, ironworkers are
often required to undergo apprenticeship training before they are accepted to journeyman status. Typically
this apprenticeship period is from two to five years. During this period, the trainee is paid less than a
qualified worker. These programs put the trainee under the guidance of a master worker.
B. Job instruction training (JIT)
JIT consists of four basic steps: a) preparing the trainees by telling them about the job and overcoming their
uncertainties; b) presenting the instruction, giving essential information in a clear manner; c) having the
trainees try out the job to demonstrate their understanding; and d) placing the workers into the job, on
their own, with a designated resource person to call upon should they need assistance.
C. Planned progression
It is a technique that gives employees a clear idea of their path of development. They know where they
stand and where they are going. They must know the requirements for advancement and the means of
achieving it.
D. Job rotation
It involves periodically moving people from one job to another. The purpose of job rotation is to broaden
the knowledge of managers or potential managers. It also increases their experiences. Trainees learn about
the different enterprise functions by rotating into different positions. They may rotate through (1) non-
supervisory work, (2) observation assignments, (3) various managerial training positions, and (4) middle
level assistant positions. Such movement prevents stagnation. Other reasons for rotating people include
compensating for a labor shortage, safety and preventing fatigue.
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E. Creation of assistant to positions
Assistant-to positions are frequently created to broaden the viewpoints of trainees by allowing them to
work closely with experienced managers who can give special attention to the development needs of
trainees. Managers can give selected assignments to test the judgment of trainees. This approach can be
very effective when superiors are also qualified trainers who can guide and develop trainees until they are
ready to assume full responsibilities as managers.
F. Temporary promotions
Individuals are frequently appointed as acting managers when, for example, the permanent manager is on
vacation, is ill or is making an extended business trip or even when a position is vacant. When the acting
manager makes decisions and assumes full responsibility, the experience can be valuable. In this way,
managerial people can be trained up well.
G. Committees and junior boards
These give trainees the opportunities to interact with experienced managers. The trainees become
acquainted with a variety of issues that concern the whole organization. They learn about the relationships
among different departments and the problems created by the interaction of these organizational units.
Trainees may be given the opportunity to submit reports and proposals to the committee or the board and
to demonstrate their analytical and conceptual abilities.
H. Coaching
On-the-job training is a never-ending process. A good example of on the job training is athletic coaching. To
be effective, which is the responsibility of every line manager, must be done in a climate of confidence and
trust between the superior and the trainees. Patience and wisdom are required of superiors who must be
able to delegate authority and give recognition and praise for jobs well done. Effective coaching will
develop the strengths and potentials of subordinates and help them overcome their weakness. Coaching
requires time, but if done well, it will save time and money and will prevent costly mistakes by
subordinates; thus, in the long run, it will benefit all -superior, the subordinates, and the enterprise.
Off-the-job training
Off-the-job training is sometimes necessary to get people away from the work environment to a place
where the frustrations and buzz of work are eliminated. Training is generally given in the form of lectures,
discussions, case studies and demonstrations. This enables the trainee to study theoretical information or
be exposed to new and innovative ideas.
Advantages of Off-the-Job Training
Off-the-job training has the following advantages:
It does not disrupt the normal operation.
Trainers are usually experienced enough to train,
It is systematically organized,
Efficiently created programs may add a lot of value.
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Disadvantages of Off-the-Job Training
It is claimed that off-the-job training faces following limitations:
It is not directly in the context of the job,
It is often formal,
It may not be based on experience,
It is expensive,
Trainees may not be much motivated,
It is artificial in nature.
However, there are also many off-the-job techniques for training and developing employees and managers
such as:
A. Lectures
The lecture is one of the oldest forms of training, second to demonstrate. In the early days, knowledge was
transferred through demonstrations. The lecture may be printed or oral. It is best used to create an
understanding of a topic or to influence attitudes through education or training about a topic. The lecture is
merely telling someone about something. There are variations of the lecture format.
B. Straight lecture
It is an extensive presentation of information, which the trainee attempts to absorb. The lecture is typically
thought of in terms of a person (trainer) speaking to a group about a topic. It is a short version of a lecture.
It has the same features as the lecture, but usually lasts less than twenty minutes if done orally. During a
straight lecture, the trainee does little except listen, observe and perhaps take notes. It is useful when a
large number of people must be given a specified set of information. The oral lecture should not contain
too many learning points unless the printed text accompanies the lecture. Trainees will forget information
provided orally. Short lectures are usually better. Longer lectures can be effective if the length is due to
examples and clarifying explanations. A major concern about the straight lecture method is the inability to
identify and correct misunderstandings.
C. Discussion method
The discussion method uses a lectured to provide trainees with information that is supported, reinforced
and expanded on through interactions both among the trainees and between the trainer and trainees. It
provides a two way flow of communication. Knowledge is communicated from trainer to the trainees.
Quick feedback is ensured. Better understanding is possible. Questioning can be done by both the trainer
and the trainees.
D. Demonstrations
A demonstration is a visual display of how to do something or how something works. To be effective, a
demonstration should, at a minimum, be accompanied by a lecture and preferably by a discussion.
Demonstrations:
Break the tasks to be performed into smaller and easily learned parts;
Sequentially organize the parts of the tasks;
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Complete each of the following steps for each part of the task;
Tells the trainees what trainer will be doing so they understand what he will be showing them;
It serves to focus trainee's attention on the critical aspects of the task;
Demonstrates the task, describes what trainees are doing while trainer is doing it;
After demonstrating each part of the task, explains why it should be performed in that way.
Following steps will increase the value of demonstration:
Ask the trainee to talk through the task before actually doing it;
Give the trainee opportunity to do the task and describe what he or she is doing;
Provide feedback, both positive and negative;
Let the learner practice.
E. Lectures, Discussions, and Demonstrations: An Analysis
Lectures, discussions, and demonstrations provide a high degree of trainer control over the training
process and content. However, as the training becomes more interactive, control shifts more to the
trainees. Trainee questions or answers to questions shape the content of what is covered. The group
dynamics help to shape the process used by the trainer in presenting the information. As the objectives for
knowledge acquisition increases, the amount of two-way interaction required for learning must also
increase. A disadvantage is that it decreases trainer control over what is learned and increases the time
required for learning. The lecture is most useful when trainees lack declarative knowledge or show
attitudes that conflict with the training objectives. The printed or video lecture is more effective because
they can be studied in more depth and retained to refresh learning over time. The discussion method is
more effective than the straight lecture for learning higher-order knowledge, such as concepts and
principles and for attitude changes. If the training objective is skill improvement, the demonstration may be
appropriate.
However, training objectives often include both knowledge and skill development; that is, the knowledge is
a prerequisite for the skill. The demonstration is also effective for complex tasks. The discussion method is
more effective than the straight lecture at producing attitude changes. Because attitudes consist of a
person's belief and feelings about an object or event, they can be modified by new learning. The discussion
can change employee attitudes by providing new insights, facts, and understanding. Lectures, discussions
and demonstrations are good at capturing trainee's attention, at least in the short run. They show some
strength in the area of retention, especially discussion and demonstrations.
F. Seminars and Conferences
Conference programs may be used in internal or external training. During conference programs, managers
or potential managers are exposed to the ideas of speakers who are experts in their fields. A careful
selection of topics and speakers will increase the effectiveness of this training device. Conferences can be
made more successful by including discussions. Two-way communications allow participants to ask for
clarification of specific topics that are particularly relevant to them.
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H. Reading, Television and Video instructions
Another approach to training and development is planned reading of relevant and current management
literature. This is essentially self-development. A manager may be aided by the training department, which
offers a reading list of valuable books. This learning experience can be enhanced through discussion of
articles and books with other managers and the superior. Management and other topics are featured in
television programs. Moreover, videotapes on a variety of subjects are available for use in the university or
company classrooms.
I. Business Simulation
Any training activity that explicitly places the trainee in an artificial environment that closely mirrors actual
working conditions can be considered a simulation. Training games and simulations are designed to
reproduce or simulate processes, events and circumstances that occur in the trainee's job. Trainees can
experience these events in a controlled setting where they can develop their skills or discover concepts
that will improve their performance. Simulation activities include case exercises, equipment simulators,
experiential exercises, complex computer modeling, role play and vestibule training.
J. Cases presentation
Case studies attempt to simulate decision-making situations that trainees might find on the job. The trainee
is usually presented with a written history, key elements and the problem of a real or imaginary
organization or subunit. A series of questions usually appears at the end of the case. Typically, trainees are
given time to digest the information individually. If time permits, they are also allowed to collect additional
relevant information and integrate it into their solutions. Once individuals arrive at their solutions, they
may meet in small groups to discuss the different diagnoses, alternatives, and solutions generated. Then
the trainees meet with the trainer, who facilitates and directs further discussions. The trainer should
convey that no single solution is right or wrong, but many solutions are possible. The learning objective is
to get trainees to apply known concepts, principles and discover new ones.
K. Equipment simulators
Equipment simulators are mechanical devices that require the trainee to use the same procedures,
movements, or decision process, they would use with equipment back on the job. Simulators train airline
pilots, air traffic controllers, taxi drivers, etc.
L. Business Games
Business Games are simulations that attempt to represent the way an industry, company and subunit of a
company function. They are based on a set of relationships, rules, and principles derived from theory or
research. However, they can also reflect the actual operations of a given department in a specific company.
Trainees are provided with information describing a situation and are asked to make decisions about what
to do. The system then provides feedback about the impact of their decisions and they are asked to make
other decisions. This process continues until some predetermined set of the organization exists or a
specified number of trials are completed. For example, if the focus is on the financial state of a company,
the game might end when the company reached a specified profitability level or when the company must
declare bankruptcy.
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Business games involve an element of competition, either against other players or against the game itself.
Some of the purposes for which businesses games have been developed and used are listed below:
Strengthen executive and upper management skills,
Improve decision making skills at all levels,
Demonstrate principles and concepts,
Integrate separate components of training into an integrated whole,
Develop leadership skills,
Explore and solve complex problems in a safe, simulated setting.
Improve application of total quality principles and develop skill in using quality tools.
L. Experimental Exercise
Experimental exercises are usually short, structured learning experiences where individuals learn by doing.
For example, an experimental exercise could be used to create a conflict situation where employees have
to experience a conflict personally and work out its resolution. After completing the exercise, the trainer
typically discusses what happened and introduces the theoretical concepts to help explain the members'
behavior during the exercise.
M. Role playing
Role playing is a training technique in which trainees act out roles or parts in a realistic management
situation. The aim is to develop trainees' skills in areas like leadership and delegating. It is an enactment or
simulation of a scenario in which each participant is given.
N. Modeling
Behavior modeling uses the tendency for people to observe others to learn how to do something new. The
modeled behavior is typically videotaped and then watched by the trainees. The behavior modeling
process can be summarized as follows:
Define the key skill deficiencies
Provide a brief overview of relevant theories;
Specify key learning points or critical behaviors to watch for;
Use an expert to model the appropriate behaviors;
Encourage trainees to practice the appropriate behaviors in a structured role play; Provide opportunities
for the trainer and other trainees to give reinforcement of appropriate
imitation of the model's behavior;
Ensure the trainee's supervisor reinforces appropriate demonstration of behavior on the job.
O. Computer modeling
Complex computer modeling simulates the work environment by programming a computer to imitate
some of the realities of the job. It is widely used by airlines in the training of pilots. The computer simulates
the number of critical job dimensions and allows learning to take place without the risk or high costs that
would be incurred if a mistake were made in a real-life flying
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situation. An error during a simulation offers an opportunity to learn from one's mistakes. A similar error
under real-life conditions might cost a number of lives and result in the loss of a multimillion-dollar aircraft.
P. Vestibule training
In vestibule training, employees learn their jobs and the requirements they will be using, but the training is
conducted away from the actual workplace. While expensive, vestibule training allows employees to get a
full feel for doing tasks without real-world pressures. It minimized the problem of transferring learning to
the job, since vestibule training uses the same equipment the trainee will use on the job.
Q. Sensitivity Training (T-groups)
Sensitivity training is a psychological technique in which intensive group discussion and interaction are used
to increase individual awareness of self and others. Sensitivity training, also called T-group training or
"encounter group training," is basically a technique for management development. It is concerned with the
real problems existing within the group itself. In this program, an attempt is made to change the attitude
and behavior of people in the group. It is used in building team efforts. This is done through introspection,
self-criticism, open arguments, and free and frank discussion so that one comes to know how others feel
about him and his behavior. Sensitivity training is about making people understand themselves and others
reasonably, which is done by developing in them social sensitivity and behavioral flexibility. It is a means of
providing a mirror in which one can see his mental makeup, attitude, and behavior towards others. This will
provide the best method of motivation for self-development. Sensitivity training helps employees be more
sensitive and accepting of the existing diversity in the workplace. It is the ability of an individual to sense
what others feel and think from their own point of view. It enhances understanding between members of
the organization and enables the building of good interpersonal relationships with other team members.
Sensitivity training sessions can be used as an open and safe space for managers to interact with their team
without fear of judgment. This will help them gain a better understanding of their employees' behaviors
and get to know who they are as people.
Objectives of Sensitivity Training
The main goal of sensitivity training is to make employees aware of their attitudes and behavior toward
others. The objectives of this training include the following:
better insight into one's own behavior and the way one appears to others;
better understanding of group processes;
Members learn more about themselves, especially their weaknesses and emotional stability;
development of skills in diagnosing and intervening in group processes;
Find better methods and means of behavior for effective interpersonal relationships without the aid of
power over others.
better understanding and awareness of group and inter-group processes, both those that facilitate and
those that inhibit group functioning.
Improvement in individuals' ability to analyze their own interpersonal behavior, as well as to learn how to
help themselves and others with whom they come in contact to achieve more
satisfying, rewarding, and effective interpersonal relationships
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The T-Group is a small discussion group without a leader. Trainer raises a question and encourages open
discussion, which is unstructured. The focus is on feelings and mutual respect. Here, group members
interact and then receive feedback on their behaviors from the trainer and the other group members, who
express their opinions freely and openly. The feedback may be positive or negative. An example may make
it clear. "Mr. Rahim, I do not get a good feeling when you approach the topic the way you just did. Could
we talk about it?" Rahim may accept this comment and resolve to change his behavior. But he may also
feel hurt and withdraw from the group.
Limitations of T-Group Training
Personal anxieties, frustrations, and mental breakdowns may result from the T-group process. It may make
managers hypersensitive, which makes them unable to take hard decisions for fear of hurting others. But if
properly managed, it can result in collaborative and supportive behavior.
Guidelines
The following guidelines can help reduce potential harm and increase effectiveness:
Participants in the T-group should be chosen at random.
They should be screened, and those who could be harmful should be excluded from this experience.
Trainers should be carefully evaluated and their competence clearly established.
Potential participants should be informed about the goals and the process before they commit themselves
to sensitivity training.
In one way Sensitivity training is the process of developing emotional intelligence, which means "the
mental ability an individual possesses enabling him or her to be sensitive and understanding to the
emotions of others as well as being able to manage their own emotions and impulses.
Computer-based training:
eLearning or online training) has become one of the most recognized employee training methods,
especially in the post-pandemic world where employees are remote and can't attend in-person training
sessions. eLearning enables employees to learn in the comfort of their homes, according to their individual
learning styles and needs. Online training is any course of instruction whose primary means of delivery is a
computer. A Computer based training course (sometimes called courseware) may be delivered via a
software product installed on a single computer, through a corporate or educational intranet, or over the
Internet as Web-based training. Computer-based learning makes use of the interactive elements of the
computer applications and software and the ability to present any type of media to the users. Many
companies are implementing computer-based training as an alternative to classroom training to
accomplish this goal. Some of the reasons for this shift are demonstrated in the following beliefs that many
companies hold about CBT:
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reduces trainee learning time.
reduces the cost of training. In person training comes with a lot of costs, such as instructor fees, travel, and
employee productivity. An online employee training platform can reduce overall training time, which
means more time for employees to work on tasks that ultimately affect your bottom line.
eLearning does not require a physical classroom, which translates to reduced monetary
spending. Employees can easily manage work with learning by taking the online courses at their preferred
time.
High engagement. Computer-based training allows employees to have higher retention rates too.
Employees, as well as the organization, have more control over the learning process. New technology and
employee training management software allow for engagement and immersive content that can also be
accessed by a smart phone or tablet.
provides instructional consistency.
affords privacy in learning
allows the trainee to master learning
in a safe method for learning hazardous tasks
increases access to training
The demerits are:
Employees might feel isolated with the lack of face-to-face interaction with instructors,
It takes a lot of time to design training materials and keep them updated,
Requires stable access to high-speed internet.
Video training
Video training is one of the most effective employee training methods to engage employees and deliver
sophisticated learning experiences at a lower cost than traditional training. Creating training for employees
enables them to digest information in an easy-to-understand format that is easier to retain, and employees
are able to go back and watch it at any time. Videos offer better engagement for your team members,
resulting in a higher likelihood of information retention. It enables employees to learn at times that are
convenient to them without hindering their workplace productivity. Video training does not offer the same
level of human contact as in-person training. Videos can be time-consuming when it comes to updating any
new information.
11. Training Process
Training is the systematic development of the attitude, knowledge, and skill pattern required by a person to
perform a given task or job adequately, and development is "the growth of the individual in terms of
ability, understanding, and awareness." Training is a process involving a few basic steps. These steps are
essential to creating an effective training program. These are discussed below:
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Assess Training Needs: First of all, training needs must be analyzed. Identifying and assessing needs is the
first step in developing a training program. Employee training needs may already be established in the
organization's strategic, human resources, or individual development plans.
Set organizational training objectives: The training needs assessments (organizational, task, and individual)
will identify any gaps in your current training initiatives and employee skill sets. These gaps should be
analyzed, prioritized, and turned into the organization's training objectives. The ultimate goal is to bridge
the gap between current and desired performance through the development of a training program.
Create a Training Action Plan: The next step is to create a comprehensive training action plan that includes
learning theories, instructional design, content, materials, and any other training elements. Resources and
training delivery methods should also be detailed. While developing the program, the level of training and
participants' learning styles also need to be considered.
Implement Training Initiatives: The implementation phase is where the training program comes to life.
Organizations need to decide whether training will be delivered in-house or externally coordinated.
Program implementation includes the scheduling of training activities and the organization of any related
resources (facilities, equipment, etc.). The training program is then officially launched, promoted, and
conducted. During training, participant progress should be monitored to ensure that the program is
effective.
Evaluate and Revise Training: The training program should be continually monitored. At the end, the entire
program should be evaluated to determine if it was successful and met training objectives. Feedback
should be obtained from all stakeholders to determine program and instructor effectiveness and also
knowledge or skill acquisition. At this point, the training program or action plan can be revised if objectives
or expectations are not being met.
12. Evaluation of Training Program
Training evaluation is the systematic process of collecting information and using that information to
improve the training program. Evaluation provides feedback to assist an individual in determining whether
the training program achieved the desired outcomes and in making decisions about future trainings.
Training evaluation is the systematic process of analyzing training programs to ensure that they are
delivered effectively and efficiently. Training program evaluation is a continual and systematic process ess
of assessing the value or potential value of a training program. The results of the evaluation are used to
guide decision- making around various components of the training and its overall continuation,
modification, or elimination. We can use the evaluation process to determine how effective our training
efforts have been. Unless we periodically take measures to evaluate what we are doing, we will not be able
to know how well we are achieving our objectives. There are three kinds of criteria that can be used to
judge training: internal, external, and the reaction of the participants.
Reasons for the evaluation of training
The valuation acts as a check to ensure that the training is able to fill the competency gaps within the
organization in a cost-effective way. This is especially important in light of organizations' efforts to reduce
costs while expanding globally. For example, a training objective
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could be to train ten people to type at least fifty words per minute with less than a 1 percent error rate.
Evaluation ensures accountability. Evaluation is useful to explain why program failure should occur. The
credibility of training and development is greatly enhanced when it is proven that the organization has
tangibly benefited from it.
Criteria for evaluation
Evaluation involves the assessment of the effectiveness of the training programs. This assessment is done
by collecting data on whether the participants were satisfied with the deliverables of the training program,
whether they learned something from the training, and whether they are able to apply those skills at their
workplace. There are many methods and tools available for evaluating the effectiveness of training
programs. Their usability depends on the kind of training program that is under evaluation. Most experts
argue that it is more effective to use multiple criteria to evaluate training. One view of a multiple-
evaluation system was developed by Kirpatrick (1998). Training programs can be evaluated by asking the
following questions: a) Has change occurred after training? b) Is the change due to training? c) Is the
change positive or negative? d) Will the change continue with every training program? A training program
should result in the following changes:
Reaction
Reaction refers to the attitude of an employee toward the training, whether the employee considers the
training to be positive or negative. If the reaction is positive, then people have accepted the program, and
changes will be possible.
Learning
Another method of judging effectiveness is to identify levels of learning, i.e. how much the people have
learned during the training. This can be found in the trainer's mark sheet, the report submitted by the
employee, and actual performance. What knowledge and abilities did participants learn at the training?
Behavior
How have participants applied the skills they learned? The HR department needs to understand the
behavior of the employees and the effectiveness of training. It measures the degree to which participants'
behaviors change as a result of the training-basically, whether the knowledge and skills from the training
are then applied on the job.
Result
This process may include several methods to assess the outcomes and effects of training programs over
time. What was the effect on the agency or organization? Is the employee performing better than earlier?
This stage seeks to determine the tangible results of the training, such as reduced cost, improved quality,
and efficiency, increased productivity, employee retention, increased sales, and higher morale.
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13. Reasons for the Failure of Training
There is no doubt that an effective training program will yield enormous benefits. On the other hand,
improper training can be counterproductive to the organization's goals. There are several reasons why
training often fails in companies. Through a literature survey, many researchers have identified some
reasons for the failure of training programs, which are listed below:
Inaccurate analysis of training needs. Managers often feel that the extra effort complete a to training needs
analysis is a waste of time when they could simply implement the assumed training requirements. An
analysis needs to be made based on relevant information.
:
The learning objectives and outcomes of the training are not identified and specified clearly.
No on-the-job rewards for behaviors learned in training There must be a strong linkage between reward
and performance.
Training employees costs time, money, and materials. Often, third parties are needed to conduct job
training.
team or trainees not actively involved in the development of the learning program.
insufficient time to execute training programs,
The work environment does not support new behaviors learned in training.
Lack of motivation among employees
Insufficient training needs analysis,
Lack of qualified trainers,
looking at training as a cost, not an investment. Many companies first cut training budgets during the
financial crisis period.
Management does not support training programs. All relevant levels of an organization should be involved
when conducting a training needs analysis.
Training needs to be changed after programs have been implemented.
insufficient funding for training programs.
Viewing training as an event, not a process, One of the primary reasons training fails is that it is often
viewed as a one-time event rather than a process.
Lack of follow-up or reinforcement of training.
Many employees tend to resist change. Employee resistance to change is a significant barrier to
organizational learning. Individuals who are accustomed to a particular way of functioning over a long
period tend to avoid doing something new. They are unwilling to learn or adapt to new processes. They
dislike stepping outside of their comfort zone. Keeping the learners engaged throughout corporate learning
or even compliance training is a constant training challenge for managers.
14. How to make an effective training program
The rapid evolution of new technology and the cutthroat competition for finding and recruiting top talent
make it challenging for organizations to retain and hire employees based on their needs and requirements.
These factors make quality employee training crucial for companies that want to maintain a competitive
edge, retain their top talent, boost profits, and keep their workforce up-to-date with the latest industry
knowledge, skills, and trends. Developing an effective employee training program is vital to the long-term
success of any business. Training programs provide multiple benefits for employees and the company, but
only if they are
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carefully planned and properly implemented. A clear understanding of policies, job functions, goals, and
company philosophy leads to increased motivation, morale, and productivity for employees and higher
profits for your business. Training is a means to a specific end, so keeping goals in mind during the
development and implementation stages of your training program will assist in creating a clearly defined
and effective program.
Define the needs of a company by identifying weak areas where training would be
beneficial.
Define the short- and long-term goals of the company and identify possible training to meet those goals.
• Develop individual training modules based on an individual's defined needs and goals.
Use a professional trainer or experienced employee whenever possible. The trainer's interaction with the
audience and presentation of the material is a major factor in training effectiveness.
Manager development plans must be integrated with the aims of the organization.
• Teachers and trainers will be more effective if they interview trainees before the program begins.
identify training needs correctly. Needs related to the operation and the job itself can be identified from
job descriptions and performance standards. Data about individual training needs can be gathered from
performance appraisals, interviews with job holders, tests and surveys, and career plans for individuals.
Training and development needs must determine training methods.
Create an employee feedback form to rate the training and collect comments and opinions as to the
training session's perceived effectiveness.
Make training a part of every new employee's orientation going forward.
Training and development must be evaluated based on pre-selected and verifiable objectives. The training
programs can be evaluated through post-tests, surveys, and interviews with trainees by managers. Training
is effective when the learning environment is interactive.
15. Training Practices in Bangladesh
Most of the employers in Bangladesh want to hire trained personnel, and very few are interested in
developing people by investing in them. Education overemphasizes the humanities and concentrates less
on the type of training that develops skills for industrial development. Here are some common problems
associated with training at the macro level in Bangladesh:
Training expenditures have a low priority in company budgets. • Aggregate business expenditures on
training are inadequate. During bad times, companies
first cut training budgets. Training needs are not properly identified. TNA must match individual
requirements. One size may not fit all.
Management training in our country has not been accepted as a top management activity.
Corporate commitment to training is lacking. Most companies spend nothing at all on training.
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• Training is not viewed as an investment; rather, it is treated as an expense. Businesses complain that
universities award degrees, but they are no guarantee that graduates have mastered skills. As a result,
businesses must spend large amounts of money to retrain workers in basic skills.
The employer and universities must develop closer ties. Educational institutions must learn the needs of
business. In order to make the business course more meaningful, universities can invite guest speakers to
share their experiences. This creates close ties between universities and enterprises. Executives become
aware of the quality of each university's curriculum, and students may find it advantageous to know about
the companies when they are looking for jobs.
Conclusion
Human resources represent intellectual capital, which is the new source of organizational resources. The
organization could increase them only through training, development and motivation of employees. The
prosperity of organizations becomes explicitly dependent on the intellectual capacity of their employees
and their ability to change and adjust to the dynamic business environment.
16. Is Training an investment or expenditure for an organization?
There is a debate about whether training is an investment or an expense. It is a fact that training is an
integral part of any organization; it equips the employees with the skills required to perform their jobs
perfectly. In an era of globalization and technological advancement, business organizations need a
competent and capable workforce to encounter different types of challenges. These progressive
organizations invest in training their employees to receive the desired results. Performance is through
people. People make other factors productive and useful.
Productivity is through people. Organizations need to bring in more revenue than they spend on
developing people; otherwise, they cannot afford to develop their people. As Benjamin Franklin once said,
"An investment in knowledge pays the best interest." Training isn't something that's "nice" to have in your
organization. It's a vital part of a company's long-term investment and growth strategy. An organization
that designs and implements well-planned employee training
programs will beat its competitors.
Trained and smart people are the main source of competitive advantage for any organization. The best
companies in the world spend the most on training to provide their employees with the skills they need to
deliver excellent service, and the top managers of these companies look at training as an investment in
success. Things are changing dramatically. Many jobs are becoming redundant, and employers must have
good performers. It is imperative to invest in learning and development. Organizations must have
employees who are equipped with reskilling and upskilling to welcome change and turn problems into
profitable opportunities. Employees also need to invest in upgrading their skills to stay relevant in the
industry. This may increase their employability. This will enhance their confidence, which can also improve
their overall performance.
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There are many reasons to invest in training. Training is important for both employees and employers. It
provides employees with a good opportunity to grow their knowledge base and improve their job skills to
be more successful in the workplace. Although training employees involves a huge cost, the return on
investment is huge if it is properly executed. Training produces many positive results, such as improved
quality of products and services, a reduction in errors or defects, reduced turnover intentions of the
qualified people, enhanced productivity, increased motivation, employee engagement, increased customer
loyalty, the development of the talent pool, capacity building, grooming the leaders, etc. The benefits of
investing in staff training include high profitability due to lower turnover or fewer fines for noncompliance
(Dessler, 2000). A study shows that companies that have invested in formalized training experience a 24
percent higher profit margin than those who have not (Talent Development Report, 2010).
A high-quality training program may increase communication, promote client happiness, and increase
revenue. All these factors are critical components of a business success formula. As leaders and managers,
you are responsible for the success of your organization and for developing your people to increase your
chances of success. For any organization, people are one of the biggest investments, and they should not
be left to rust. It is a fact that replacing talent is far more costly than retaining existing ones. Training does
not only teach new skills but also conveys a strong message to employees that they are their most valued
and strategic assets. When employees feel more valued, they are more loyal and committed to the
organization. Training promotes strong teamwork and helps to bridge communication gaps and
misunderstandings between functional departments.
A good manager is one who develops good successors. Training helps to develop the talent pool
in the organization. The market for talented people is very competitive. Organizations should
spend more money on employee training. Training and development initiatives are a win-win
strategy. From the perspective of the employer, these initiatives improve employee knowledge
and skills. Job candidates and employees choose an employer who will give them a chance to
develop their skill set and advance their careers within the organization. Training provides
opportunities to learn skills that facilitate their career success. Training is an investment to
attract and retain top performers. It is an investment that makes a company competitive. It is an
investment that makes a company competitive. Employees who are given the opportunity to
grow and learn new skills will not look for new opportunities elsewhere. The attrition rate and
recruitment costs will be lower. Employee training is worth the investment because replacing
talents is far more expensive than retaining existing ones. According to a study conducted by
Gallup, replacements can cost a company around 150 percent of a staff member's annual salary.
Unfortunately, during economic crises, many organizations control their budgets by cutting
labor costs, and they try to minimize labor costs. Training is viewed as an expenditure, so when
the business went through a lean phase, the first axe fell on the training budget. The training
budget is reduced. The main reason for cutting the training budget is that the HR Department is
unable to justify the return on investment. It continues to be a challenge. While it is possible to
track and measure ROI on technical and functional training, it is difficult to do so for soft skill
training. Training does not come without some expense. It takes time and resources to design
and execute an effective training program. Many small organizations find it difficult to justify
training expenditures. But it is a trade-off where the benefits clearly outweigh the costs.
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Organizations should spend more money on employee training. Training and development initiatives are a
win-win strategy. From the perspective of the employer, these initiatives improve employee knowledge
and skills. Job candidates and employees choose an employer who will give them a chance to develop their
skills and capabilities, which are essential for increasing performance and advancing their careers within
the organization. Training should be treated as an investment expense that will create a further increase in
income and employment. Successful companies spend more than five percent of their budget on employee
training. Let's have a look at investments and expenses. Investments are likely to produce future cash flows
and are the result of a different set of activities than expenses. Expenses are charges that are incurred in
the current period and are not expected to create future cash flows. The training cost is the amount that a
company spends to develop employee skills and technical knowledge; this cost is usually classified as an
operating expense in the income statement.
Organizations can develop an infrastructure to support training objectives and design a consistent training
curriculum. The training program will be effective when trainers are competent, so it is equally important
to develop competent trainers. When trainers can motivate trainees to learn, learning becomes more
effective. Trainees will be more receptive to learning when trainers have a strong command of a topic.
Periodically bring in outside speakers who will enlighten employees with new skills and knowledge; this will
keep training fresh, entertaining, motivational, and current. Just like kids, employees tend to get bored
when their peers or bosses are the only ones who deliver the training messages. Virtual training is very
economical. As a result, it is critical to invest in developing employees, an organization's most valuable
resource. Training expenses, for example, are tax-deductible in the United Kingdom. One can claim
allowable business expenses for training that helps him improve the skills and knowledge he uses in his
business.
To qualify for job-related education expenses, an employee must determine whether the training is
required to keep his job or improves his skills. The individual worker's investment consists of the education,
training, and experience that a worker has invested in a lifetime of work. Gitelman (1968) assumes that a
worker's compensation is fixed by the rate of return on that worker's investment. For example, MBA
graduates from Harvard University are likely to be paid more than those from less prestigious universities
in the USA. Training is an expense in the short term, but it generates a return in the long run. As the saying
goes, "You can feed a guy for a day if you give him a fish." You can feed a guy for a lifetime if you teach him
to fish. Training is an investment in the intellectual capital of a company.