Improving organizational performance through training function: a review

Abstract

The human resources' training function plays an important role from the beginning of the employment. In the same time, the development function of HR is equally important for the future of the employment relationship. This study reviews the previous studies on the impact of training on firms' performance. The review shows that few determinants and factors on the training program are related to firms' performance. Factors such as number of training programs conducted, training policy, nature of training, effort in evaluating training programs, flexibility of the training programs, training cost, identifying training needs and training program design found to have significant impact to firm performance. In addition, some studies have shown a positive correlation between training and firms' sales and productivity. This indicates that increase in training activities can help organizations to perform better and improve firm's future value. In conclusion, it is undeniable that training is one vital function in HRM that can impact firms' performance. HR practitioners that wanted to play more strategic role in the organizations must embark into this function effectively.