BACKGROUND OF THE STUDY
Human resources are the most valuable assets of any organization, with the machines, materials and even the money; nothing gets done without man-power. In today’s business climate, businesses are faced with stiff internal and external competition. There are various human resource functions that give an organization a competitive edge, but most scholars argue that human resource functions becomes only operational when training has run through them all. This places training and development as an essential function in the survival of any organization. Increasingly, high performance organizations today are recognizing the need to use best training and development practices to enhance their competitive advantage. Training and development is an essential element of every business if the value and potential of its people is to be harnessed and grown. Competitions over the years have led to some organizations reviewing their policies on training, introducing continuous investment in their employees. It is well discussed within literature that the training budget is first budget cut during hard time although most theorists do not believe in general that this is the best action for the Human Resources department and the long term benefits of training outweigh the short term monetary savings. According to Cole (2004), human resources are the most dynamic of all the organizations resources. They need considerable attention from the organizations management. Each employer who invests in the area of Training and Development will reap the benefits of an enriched working environment with higher levels of staff retention as well as increased productivity and performance. In the view of Abiodun (1999), training is a systematic development of knowledge, skills and attitudes required by employees to perform adequately on a given task or job. Training and development are required for staff to enable them work towards taking the organization to its expected destination. Adeniyi (1995) observed that staff training and development is a work activity that can make a very significant contribution to the overall effectiveness and profitability of an organization. He therefore provides a systematic approach to training which encases the main elements of training. However, for the training function to take effect, the training plan and policies must be in line with the organization’s strategic objectives. For organizations to survive, training and re-training of all staff in form of workshops, conferences and seminars should be pursued and made compulsory. This research work seeks to study the impact of Training and Development on organizational growth and profitability.
STATEMENT OF THE PROBLEM
In today’s climate where all industries are experiencing staff and skills shortage, companies are faced with stiff internal and external competition for quality employees. Training and development aim at developing competencies such as technical, human, conceptual and managerial for the furtherance of individual and organizational growth (Oriabor, 2000), also Isyaku (2000) postulated that the process of training and development is a continuous one. In order to remain competitive and to ensure excellent staff are attracted within the organization, companies need to ensure that the training and development of all employees is an issue which is taken seriously. According to Cole (2004), there are many organizations in the commercial field that carry out the minimal of staff training and development. The issue is that most managers do not know how to assess the impact of training and development on organizational performance. Due to the lack of understanding of the nature of relationship between training and organizational growth and profitability, most managers do not include it in their budget for the year. Employers do not invest in training because they fear that the employees will leave after receiving training forgetting the...
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