Analyzing HRM: Training, Development & Budgeting in Organizations

This essay discusses the critical role of human resource management (HRM) in enhancing organizational profitability through effective training and development programs. It highlights the importance of on-job training, appropriate training design, and effective delivery styles in improving employee performance and, consequently, organizational outcomes. The essay also touches upon the significance of budgeting in supporting HRM activities such as recruitment, selection, and continuous employee training, using Coles Supermarkets Australia as an example. It emphasizes that investing in human resource capital is essential for sustaining competitive advantage and adapting to changing market demands, suggesting continuous improvement in training methodologies to maintain workforce productivity and customer satisfaction.

Running head: HUMAN RESOURCE MANAGEMENT ESSAY
Human resource management Essay
Name of the Student
Name of the University
Author note

1HUMAN RESOURCE MANAGEMENT ESSAY
On-job training, training and development, delivery style and training design are
considered to be the four most important aspects for the success of any organization. Training
and development plays a major role in the generation of organizational profits. Moreover, it
assists an organization to achieve their goals or objectives by integrating the interests of the
workforce. In modern days, training and development is regarded as the most crucial factor in
the ever competitive business world, as it helps in increasing the effectiveness and efficiency
of both the organization and its employees. The performance of the employees heavily
depends upon certain factors, one of which is training (Sung and Choi 2014).
Training and development sessions are immensely important for enhancing the employees’
capabilities or abilities. The individuals who have better on-job training experiences are more
competent than others. It is evident that they perform better as they have great skills or
competencies. Most importantly, training and development has also impacted the
organizations on their returns on investment. In addition to this, the organizational
profitability highly depends upon the performances of the employees. Moreover, the human
resource capital of the organization marks its importance on the organizational performance
and growth (Scott and Davis 2015). Therefore, in order to improve the performance of the
organizations, employees must receive proper or appropriate training facilities.
According to Epstein and Buhovac (2014), training and development helps in increasing the
performances of the employees. It is the most important activity that the organizations should
conduct on a daily basis. For instance; Coles Supermarkets of Australia considers employee
training and development to be a major factor and views it as the building block of their
profitability. Coles conduct regular training sessions for fifteen to twenty minutes, in order to
make the employees competent. Through the training and development sessions, the
employees get to understand the purchasing behaviors and attitudes of the target customers,
which in turn prove to be beneficial for the company itself.

2HUMAN RESOURCE MANAGEMENT ESSAY
Organizational profitability depends upon several factors like performances of the employees,
competitive rivalry and several others. However, training and development is considered to
be the most important factor for the profitability of the organizations, be it big or small.
Larger organizations have different patterns of providing its employees with a proper session.
They may conduct training and development programs on a daily basis, which is turn acts as
a motivator as well. Training sessions motivates and encourages an employee to give their
best performance (Riggio and Porter 2017).
On the other hand, smaller organizations may not have budget to conduct sessions on a
regular basis. However, it is highly important to organize basic training sessions for the
employees in order to give them an overview of the company’s mission, vision, goals,
objectives or competitive advantages. Training and development enhances the skills and
competencies of the employees, which in turn improves their performances. Improved
performances increase the profitability of the businesses and contribute to their competitive
advantage as well. This reveals the fact that training and development sessions plays an
important in the enhancement of employee performances and organizational profitability
(Kim and Ployhart 2014).
As per Bratton and Gold (2017), training and development helps in increasing or developing
the managerial skills as well. Training is considered to be the most important factor for the
overall development of the employees’ performances, which in turn encourages them to
enhance their skills and abilities. The human resource management is the backbone of each
and every organization and it is also considered to be the major resource. Therefore, every
organization, be it big or small, should invest a significant amount on the development of
human resource capital, as they are responsible for training the employees or the staff
members.

3HUMAN RESOURCE MANAGEMENT ESSAY
The human resource professionals provide the employees with orientation or induction,
which increases their knowledge regarding the organizational growth. Moreover, Mostafa,
Gould‐Williams and Bottomley (2015) explained that the employee performance is the major
source of achieving organizational goals or objectives. This in turn, increases the efficiency
and effectiveness of the organizations. However, the major question is that how an individual
can work effectively or efficiently if proper trainings are not provided within the
organization. There are several organizations, especially the smaller ones, which does not
have any proper human resource management. These organizations lack appropriate training
facilities and thus fail, to make the employees aware of their goals.
It is considered to be immensely important and necessary for the organizations to hire a
skilled and experienced human resource manager. The human resource managers of the
organization are responsible for designing an appropriate training material and that too, very
carefully. The design of the training materials should be in accordance with the employees’
needs or demands. The organizations that develop or design an appropriate training facility
get highly benefitted and yield better profitability. Training designs play a very important role
in the employees’ as well as organizational performances. A bad training facility is nothing,
but loss of money as well as time (Lonial and Carter 2015).
On-job training and development facilities assist the employees in getting knowledge of their
jobs in an appropriate manner. Employees tend to learn more from the practical experiences
as compared to the bookish knowledge. Moreover, on-job training and development also
saves time and reduces huge expenses. Therefore, organizations can provide its employees
with on-job training facilities as it is both time-saving and cost effective. In addition to this,
the employees will get to learn in a practical way, which will prove to be beneficial for the
organizational itself. This in turn, will contribute a lot to their profitability (Bratton and Gold
2017).

4HUMAN RESOURCE MANAGEMENT ESSAY
However, it is important to take the training delivery style into consideration as well. The
delivery style also plays a vital role in the overall training and development process. The
employees are mostly conscious regarding the delivery style as per Kim and Ployhart (2014).
If the style is not impressive and up to the mark, the employees may end up learning nothing
and it means the whole training session was a waste of time. Therefore, according to Riggio
and Porter (2017), delivery style is also an important factor for the training and development,
which in turn contributes to the organizational profitability.
It is a matter of fact that budgets quantify the plans of any business organisation over
specific time span and budgeting helps to control and check the development of the business
organisations so that the management of the organisation keeps its regular movement within
the boundaries which have been established (Ouston, Fidler and Earley 2017). It has been
observed that budgets actually go beyond the function of controlling and planning for the
management of the organisations. Not only that the budgets enables the organisation to utilise
a tool that can benefit the business concern in order to develop a coordination among the
workforce so that the management can easily evaluate the performance level of the
employees and control them (Kelly and Rivenbark 2014). The human resources departments
of the business organisations generally takes responsibility of recruiting selecting and the
training stations of the newly recruited employees and apart from that HR departments take
care of the pension of the monetary benefits of the employees. Therefore a strong link
between the budgeting of a business organisation and the HR department that is responsible
for training and development of the employees is evident (Olstad et al. 2017). It has been
seen that the HR department is engaged with the implementation and the preparation of
budgets in order to enhance the effectiveness of the budgeting characteristics (Tracey 2016).

5HUMAN RESOURCE MANAGEMENT ESSAY
It has been seen that budget procedures can lead to motivate the employees of the
organisation when the process of budgeting is linked with the performance of the employees
as after evaluating the performances of the employees the management good allow monetary
rewards to the employees in order to compensate their efforts and also to motivate them to
stay loyal towards the business organisation (Uysal 2016). HR department as mentioned
above take care of the recruitment training and selection procedures along with the monetary
benefits of the budgeting therefore budgets of the business organisations have a strong
connection with the training and development procedures of the employees that positively
affects the organisational performance (Bertone and Witter 2015). It has been seen that for
training and development procedure of the employees of the business organisations the
management of the organisations will have to engage in several frequent workshops and may
have to recruit a team of trainers for the employees of the organisations and for that proper
budgeting of the business organisations play a major role (Ouston, Fidler and Earley 2017).
Therefore it can be said that budget has a strong Association with the HR departments and the
HR departments will not be able to function without a proper budgeting as that is most
important for the operations of the HR Teams (Octariani, Akram and Animah 2017).
Currently I work for Coles Supermarket Australia and the business organisation has
been founded in the year of 1914 in Melbourne by George Coles. Currently the business
organisation has more than hundred thousand employees across all the branches of the
business concern and together with a rival organisation Woolworths,Coles supermarket owns
more than 82 % of the Australian market in consumer service sector. I believe that the
management of the business concern is aware of the fact that proper budgeting is the pillar of

6HUMAN RESOURCE MANAGEMENT ESSAY
the success of the business and therefore the management has deployed an efficient team in
the Human Resource Department of the company that takes care of the budgeting along with
recruitment selection and training and development of the employees of the company. I have
been working here for quite a few months and I have seen that there are numerous positive
aspects of an effective teacher department and a proper budgeting procedure of the business
concern. I have seen that the management of the organisation sustains the organisational
performance by depending on a proper training and development procedure and therefore the
board of directors have deploy the specific team that walks along with the HR department in
ensuring that the employees are getting training frequently to be able to work with their full
potential in a market where the demands and requirements of the clients are changing in a
frequent manner. I strongly believe that the management of Coles Supermarket is doing
alright in the matter of budgeting along with recruitment selection and training and
development and procedures for the employees of the company as the management has been
able to sustain their productivity along with their profitability for quite some time. I have
observed that the workforce of the company is content with the treatment they are having
from the management of the organisation and I believe that the HR department of the
organisation is efficient enough to make the process of budgeting successful.It has been
observed that the management of the organisation operates more than 800 stores and
currently have more than hundred thousand employees in the workforce and the major
portion of the workforce is satisfied with the management’s role.
While concluding, I should say that I still believe that there are some rooms for improvement
as in the market where Coles supermarket operates the demands and requirements of the
customers of the company gets changed frequently and therefore in order to sustain the
productivity and the customer satisfaction continuous development of the workforce should
be necessary. I believe that the management can bring in some changes in the training and

7HUMAN RESOURCE MANAGEMENT ESSAY
development and procedure of the employees as they can enhance the frequency of the
workshops and apart from that the management of the organisation can implement some of
the motivational tools in sustaining the level of motivation of the employees as it has been
seen that some of the employees are agitated with the lack of personal development of
professional skills of them. The management of the organisation I believe should make good
use of motivational tools and can effectively implement some new policies in order to
develop the professional skills of the general employees of the organisations for their own
benefits so that they can stay motivated and loyal towards the business organisation.

8HUMAN RESOURCE MANAGEMENT ESSAY
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