Human Resource Management Report: Training, Development, & Profits

This report delves into the critical role of employee training and development in enhancing organizational performance and profitability. It begins by outlining the significant impact of training on employee efficiency, skills, and overall contribution to the organization, emphasizing the direct correlation between employee performance and organizational success. The report then addresses budgetary considerations within human resources, analyzing the costs associated with training programs, including trainer salaries, materials, and opportunity costs, while also discussing the long-term financial benefits. The report further provides insights into the importance of workplace learning and innovative approaches to training. The author reflects on their experience as a training supervisor at Apple Inc., highlighting the positive impacts of training and development and offering recommendations for improving training programs, such as setting benchmarks, gathering employee feedback, and aligning training with organizational objectives. The report concludes with a comprehensive bibliography of relevant sources.

Running Head: Human Resource Management
Human Resource Management

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Table of Contents
Impact of employee training and development on organizational profits.......................................2
Budgetary considerations in human resources................................................................................3
Reflection and recommendations....................................................................................................5
References........................................................................................................................................7

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Impact of employee training and development on organizational profits
Training and development sessions provided by management of the organization to new
candidates as well as to existing candidates plays vital role in terms of accomplishment of goals
and objectives. Training and development sessions incorporate interest of organization and
workforce. It is the most effective tool which helps the organization to enhance its employees’
efficiency and effectiveness which ultimately results in enhancing organizational performance.
Performance of an employee is dependent over various factors and training is one of those
factors which carry huge weightage in terms of enhancing performance. 1Training and
development is essential for both experienced as well as for new candidates because until and
unless candidates will not have appropriate knowledge about the job roles and responsibilities
which they need to perform at workplace, organization would not be able to perform in an
effective manner. Thus, it increases both skills and competencies amongst the employees and
there is a direct relationship between organizational performance and employee’s performance.
Training is the only measure through which an employee’s skills, capabilities, knowledge, talent,
and all other attributes could be moulded as per the organizational requirements. This helps the
organization to uplift its performance along with the attainment of desired goals and objectives.
According to research conducted by various business experts, it has been found that training and
development sessions plays vital role in enhancing employees’ performance which ultimately
affects organizational performance irrespective of the type of organization in positive manner. 2
Human resources are the essential asset for an organization because they are people who convert
plans made by top level management into reality. In relation with this, it is crucial for the
organization to design its training structure in an effective manner so that the new hired
candidates as well as existing employees of the organization could be groomed as per
organizational policies, standards as well as requirement basis. An employee cannot perform
well at workplace without appropriate training and it is proven that trained employees act as an
asset for the organization, thus, organization is required to provide appropriate training measures
to its employees so that the overall organizational goals and objectives could be attained.
1 Dean Karlan and Martin Valdivia, ‘Teaching Entrepreneurship: Impact Of Business Training On Microfinance
Clients And Institutions’ (2011) 93(2) Review of Economics and Statistics.
2 Scott Rigby and Richard M. Ryan, ‘Self-Determination Theory In Human Resource Development: New Directions
And Practical Considerations’ (2018) 20(2) Advances in Developing Human Resources.

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Training and development process is a costly process and it increases overall cost of the
organization but in the long run, training measures provides valuable benefits to the organization
which acts as an advantage through which overall goals and objectives could be attained along
with attaining effective position in the competitive business environment.
Impact of training and development measures on organization is of both positive as well as
negative form. Positive impact of training and development for employees is that it helps in
increasing performance; it grooms employees and makes as per requirement of organization.
Apart from this, training and development also provides sufficient information to the employees
regarding organizational working structure, policies and standards which plays effective role in
enhancing an employee’s performance. Ultimately, increased employees’ performance leads to
uplift organizational performance through which organization could be able to make its effective
position in the competitive business environment.
Above figure shows the impact of training and development on organizational performance
which shows that organizational performance is a dependent variable and training and
development is independent variable. This is proven that training and development has positive
impact on organizational performance and it leads to generate several benefits for the
organization. Training could be provided to the employees through two methods i.e. on the job

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training method and off the job training method. 3 Amongst these two methods, on the job
training method is more significant as it helps the employees to gain adequate knowledge about
the job in a better way. This is because various business experts says that practical experience is
much effective and efficient technique to train employees as compared to the off the job training
method where an employee is given bookish knowledge. Apart from this, there are several other
benefits linked with the one the job training method as it is cost effective and also saves time.
This shows that on the job training method creates positive effect on organizational performance
which leads to enhance organizational performance.
Budgetary considerations in human resources
Workplace environment is changing rapidly and though measures of training and development
are also changing. Organizations are required to consider cost of training and development in
order to manage all the functions in an appropriate manner so that the profit margins of the
organization could not get affected. With the growing business environment, workplace learning
measures are also increasing. There are lot of innovative and informal approaches in relation to
the workplace learning which could directly impact on the budget of the organization.
Every organization creates a budget in relevance with meeting up with all expected and
unexpected expenses so that appropriate funds could be raised along with segregating a decent
profit margin. With regards to this, organization is require to determine hiring cost and hiring
cost involve taking into considerations the investment done towards training and development
program to enhance employees’ learning and to ensure they move towards the part of enhanced
productivity.4 In order to take care of budgetary consideration, the following cost kept to be
analysed:
 No. of hours required for training: training hours provided to the new and existing
employees in relevance with improving their performance is a cost in short term and
3 Neelam Tahir et al, ‘The Impact Of Training And Development On Employees Performance And Productivity A
Case Study Of United Bank Limited Peshawar City, KPK, Pakistan’ (2014) 4(4) International Journal of Academic
Research in Business and Social Sciences.
4 Abdul Rehman, ‘Role Of Training And Development In An Organization’ [2014] SSRN Electronic Journal.

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profit in long term for organization. Trained employees will be able to generate positive
outcomes to the organization after completing the training period. 5
 No. of manpower required for training: Trainers’ salary is also a cost for an organization
as it is not affecting organizational performance.
 Opportunity cost of the loss time: Training is provided to the employees for a certain
period of time in a day but trainer is paid for the whole month which becomes an
unnecessary cost for the organization.
 Cost of material, publications etc.: All those things which are required to train new hired
candidates are also a cost for the organization.
 Cost of external or internal trainer: Appointment of internal trainer will lead to generate
positive results but it will affect organizational efficiency whereas appointment of
external trainer could be cost effective and it could also affect organizational
productivity.
 Cost of visual inventory such as projector, screen, LCD and so on: These are required for
providing training to the employees which leads to increase cost of training.
Above mentioned costs should be considered while hiring an employees and in relation with
providing training to them, trainer cost should also be considered. For instance, an existing
experience employee with high productivity is moved to the training and development
department to give training to new hired candidates. This will reduce organizational productivity
because he was a high productive in operations and on the other hand, it is also affecting
organizational performance. Whereas, organization could have hired an experienced trainer in
the same field rather going for the option of internal trainer in order to provide appropriate
training to the new hired candidates along with maintaining the productivity of the organization.
In the initial days of a new hired candidate, organization invests a certain amount to make the
employee as an asset for the organization in the long run. If an organization will not invest in the
newly appointed candidates, performance and efficiency of organization as well as of employees
cannot be enhanced. Apart from this, organization will not be able to accomplish its desired
goals and objectives through which organization would not be able to gain competitive
5 Peter Butali and David Njoroge, ‘Training And Development And Organizational Performance: The Moderating
Effect Of Organizational Commitment’ [2017] International Journal of Scientific Research and Management.

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advantage in the workplace. With regards to this, organization requires to invest in the training
and development programs so that the in the long run, organization could be able to enhance its
performance. In this manner, it is required to maintain budgetary consideration in human
resources so that the cost of training could be worthwhile for the organization.6
Reflection and recommendations
As per my opinion, training and development is an essential requirement for the organization as
it helps in improving organizational performance along with generating positive outcomes for the
organization. I’m working in Apple Inc. as training supervisor and there I have realised that even
trainers require training to get updated regarding innovations and advanced measures adopted by
the organization for the motive of uplifting organizational performance. Apple Inc. is a
multinational corporation engaged in producing high-tech mobile, laptop and computer devices.
To make their devices efficient and effective, organization has invested a huge amount in
research and development team with regards to enhancing organizational performance.
I have realised that training and development has majorly positive impacts on organizational.
There is small negative impact which increase is in cost for organization in short term but if this
cost is treated as an investment, organization would be able to uplift its performance in the long
run. Requirement for employee training in Apple Inc. is quite high because it is a technology
based corporation and technological requirements are increasing rapidly. 7
Requirement for training and development programs are huge for every organization in relation
with uplifting organizational performance as well as for the purpose of gaining an effective place
in the competitive business environment. 8 With the use of trending training measures,
organizations are being able to enhance their employees’ performance as per organizational
requirements. It has been recommended to the organizations to improve their existing training
6 Tyechia Veronica Paul, ‘Organizational Training Modalities: Investigating The Impact Of Learner Preference On
Performance’ (2016) 6(3) International Journal of Learning and Development.
7 Cagri Bulut and Osman Culha, ‘The Effects Of Organizational Training On Organizational Commitment’ (2010)
14(4) International Journal of Training and Development.
8 Mohammed Rejaul Karim, Kazi Nazmul Huda and Rehnuma Sultana Khan, ‘Significance Of Training And Post
Training Evaluation For Employee Effectiveness: An Empirical Study On Sainsbury’S Supermarket Ltd, UK’
(2012) 7(18) International Journal of Business and Management.

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and development programs in order to match up with the dynamic business environment. Certain
crucial measures which could be adopted to improve training and development programs are:
 Setting up benchmarks against competition
 Survey program and feedbacks from employees
 Training alignment as per organizational objectives and goals
 Create training programs as per organizational culture
 Inventing new ideas and measures to improve employees’ performance
 Comparing the outcomes with the previous outcomes. 9
With the help of above mentioned techniques, organization would be able to enhance the impact
of training and development programs. This would ultimately affect organizational performance
in positive manner along with gaining positive outcomes.10 Training is the only measure through
which an employee’s skills, capabilities, knowledge, talent, and all other attributes could be
moulded as per the organizational requirements. This helps the organization to uplift its
performance along with the attainment of desired goals and objectives.
9 Dana Tschannen, ‘Development Of A Virtual Crew Resource Management Training Program To Improve
Communication’ (2017) 48(11) The Journal of Continuing Education in Nursing.
10 Shefali Sachdeva and Ajay Kumar Singh, ‘Interpersonal Behaviour – Significance And Training And
Development Programme Assessment’ (2017) 8(2) Training & Development Journal.

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Bibliography
Articles/Books/Journal
Bulut C, and Culha O, ‘The Effects of Organizational Training On Organizational Commitment’
(2010) 14(4) International Journal of Training and Development
Butali P, and Njoroge D, ‘Training And Development And Organizational Performance: The
Moderating Effect Of Organizational Commitment’ [2017] International Journal of Scientific
Research and Management
Karim, MR, Huda KZ, and Khan RS, ‘Significance Of Training And Post Training Evaluation
For Employee Effectiveness: An Empirical Study On Sainsbury’S Supermarket Ltd, UK’ (2012)
7(18) International Journal of Business and Management
Karlan, D and Valdivia M, ‘Teaching Entrepreneurship: Impact Of Business Training On
Microfinance Clients And Institutions’ (2011) 93(2) Review of Economics and Statistics
Paul, T, ‘Organizational Training Modalities: Investigating The Impact Of Learner Preference
On Performance’ (2016) 6(3) International Journal of Learning and Development
Rehman, A, ‘Role Of Training And Development In An Organization’ [2014] SSRN Electronic
Journal
Rigby, CS and Ryan RM, ‘Self-Determination Theory In Human Resource Development: New
Directions And Practical Considerations’ (2018) 20(2) Advances in Developing Human
Resources
Sachdeva, S and Singh AK, ‘Interpersonal Behaviour – Significance And Training And
Development Programme Assessment’ (2017) 8(2) Training & Development Journal
Tahir, N et al, ‘The Impact Of Training And Development On Employees Performance And
Productivity A Case Study Of United Bank Limited Peshawar City, KPK, Pakistan’ (2014)
4(4) International Journal of Academic Research in Business and Social Sciences

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Tschannen, D, ‘Development Of A Virtual Crew Resource Management Training Program To
Improve Communication’ (2017) 48(11) The Journal of Continuing Education in Nursing