Impact of Employee Training and Development on Organizational Profit

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
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Introduction
In the current business scenario, it is important for the business organizations to have
trained and equipped employees in place. This is due to the reason that in the present competitive
business environment, one of the major sources of the business organizations to gain competitive
advantages is having skilled and trained employees (Nda and Fard 2013). In this case, training
and development program plays an important and effective role in enhancing the skill sets of the
employees. However, initiating the process of training and development is also having number of
factors to be considered such as the cost involved. Thus, proper consideration of the relevant
factors in implementing the training and development program will help in increasing the
organizational profit.
This essay will discuss about the major impacts of the training and development program
on the organizational profit. In addition, the budgetary constraints such as cost involved in
sourcing the infrastructure for training facilities will also be discussed in this report.
Furthermore, these factors will also be evaluated from the perspective of my organization,
TechnologyOne. In accordance to the discussed factors, a few changes will also be proposed.
Impact of employee training and development on organizational profit
As stated in the given article, Jenny Dearborn stated that one of the major impacts of the
initiation of the employee training and development program for the organization is the increase
in the chance of generation of innovative ideas. This is due to the reason that employee training
and development program will enable the employees to have more skill sets and expertise in
accordance to the present business requirement. In addition, it is also stated by Jenny Dearborn
that initiation of employee training and development program will further help the employees to

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enhance their effectiveness by the means of learning scope. Thus, the more will be the skill set
and expertise of the employees in their workplace, the more they will be able to generate
innovative ideas that will further enhance the organizational competitiveness and profit in the
market (Sung and Choi 2014).
However, on the other factors also that helps the organizations in generating profit from
the initiation of the employee training and development program. One of these factors is
enhancing the employee performance. This is due to the reason that if the employees are being
given proper training and development facilities in their workplace, then they will be able to
further enhance their organizational effectiveness. According to Elnaga and Imran (2013), with
the help of the employee training and development program, employees will be able to cope up
with the current business environment and factors effectively. This is due to the reason that,
according to the authors, employee training and development program are being designed in
accordance to the current organizational requirement. Thus, according to the authors, employees
will always stay updated with the change in business scenario. Thus, the more updated will be
the skill sets of the employees, the more will be their performance and effectiveness in their
workplace. Organizations can enhance their profitability if they have properly skilled and
updated workforce in place.
According to Jehanzeb and Bashir (2013), another major impact on the organizational
profit with the help of employee training and development is enhancement of the team working
and team effectiveness among the employees. This is due to the reason that training and
development program for the employees also covers the team working skills of them. The
authors have also stated that in the current business scenario, team work is being given major
focus and concentration. Thus, covering this aspect in the training and development program for