Training is one of the most important parts of an organization's overall Strategy. Before starting a particular venture or considering a potential acquisition, the first question arises that, whether there are required skills present in the organization or not. Typically all key skills required for efficient management of a company must be available in a company; however other non core activities can be outsourced. Need of training arises due to advancement in technology, need for improving performance or as part of professional development.
Benefits of training are intangible and investing in training benefits both, organization and employees for a long period. Training enhances a worker level of skills. It provides sense of satisfaction, which is an intrinsic motivator. Training also provides organization multi skill employees. Training increases an employer commitment to their job and their organization. Better understanding of jobs reduces accidents.
One of the most important benefits of training for an organization is that, it provides skills inside the organization which reduces overall cost of an organization's operations. Quality is one of the key features required for survival of an organization in long term. Total Quality Management (TQM) and other quality management techniques require staff training as an important requisite for its successful implementation.
Customer satisfaction increases repeat business, which is a key to success. By training employees for promoting good customer relations will increase customer satisfaction and quality of service. Just-in time philosophy is one of the leading ideas in Japan.JIT emphasize on reduction in waste and waiting time in production process. Better training will reduce waste and machine down time. A major portion of quality costs consists of supervision; by providing proper training this is reduced. Training increases productivity of employees and processes.
High employee turnover may be a serious threat to an organization existence, major benefit of training is that it reduces staff turnover and help an organization to retain its staff. Better training can provide an organization competitive advantage over others in industry.
In service industries the main source of an organization income is its staff expertise and skills, acquiring professional with high skills is comparatively expensive than training current employees to acquire those skills. Training is also a key requirement for new recruits; proper training helps them to understand the job, its requirements and responsibilities. Training also increases understanding of the organizational culture.
Training programs increases communication between different levels of an organization. Any deficiency in processes and jobs are eliminated and those close to production processes become involve in the management. Staff empowerment is a recent trend in management; such empowerment will only be successful when proper training is provided to those empowered.