Training is a difficult issue for many organizations. Most do not see real benefits arising from it. Training is a charge against the bottom line and demonstrating a benefit in terms of increased profits or added value is difficult. There are several issues that are important in the organizational perspective. One of the issues is considering of the staffing costs. Much training is not integrated into a business planning or performance management process, so it hangs in an ill-defined place within the organization. Training is a cost and some employers have gone to court in an attempt to require individuals who leave their firms after training to repay the cost (Mathis and Jackson, 2000). It’s important for the organization to take corrective action to make sure the expenditure that they have invested is returnable in such a way benefit to the organization.
If organizational leaders do not support training, it will wither on the vine. One further way in which training is vulnerable is that in times of hardship, it is one of the easiest budgets to slash, and any adverse consequences will take some time to appear. Some leader even doesn’t want to put a budget on training. The leader must have greater level of self-confidence and to be more action-oriented (Bowman, 1999). Quality also demands leadership from the top down with every person in every leadership position understanding the operation and being able to assess training needs in his or her area of responsibility (Johnson, 1997).
While it can be obvious sometimes that training is fundamental if certain things are to happen, for example, with the introduction of a new system, the gains from other forms of training are less obvious. Many times, an organization neglect to identify the training resources required implementing the policy decision. Training in the softer skills poses real difficulties in terms of identifying benefits e.g. in management, leadership, customer service, assertiveness, time management, team or group skills, change management and so on. Some organization just send their staff for training because want to use the budget and send them training without know the need of training for them. Organization often feels compelled to reduce training commitments because of economic reasons even though many studies rove solid training programs are a required investment that does not cost it pays (Johnson, 1997).
Problem in establishing suitable training is to establish a measured starting point, a point at which skills achieved can be measured, and the gains to the organization quantified. The technique used for establishing a starting point is called training needs analysis and that for an end point, an evaluation. Determining organizational training requirements can be difficult. The problem must be reviewed in various ways: employer-employee, executive manager, manager, or work force, professional or nonprofessional (Johnson, 1997). Each will require different topics and often-different approaches to the same topics.
Deficiencies in training and their consequences often show up in staff targeted for termination in downsizing or staff reduction exercises. In Malaysia when economic downturn, most organization retrenched their worker. Those most likely to be retrenched will often have been starved of training or staff development over a significant period of time. Some organization will consider of development of staff skill or outsourcing to reduce cost or risk of management. Therefore it’s important to set the training needs. Once the training needs have been identified using the various analyses, then training objectives and priorities must be established (Mathis and Jackson, 2000). All the gathered data is used to compile a gap analysis, which identifies the distance between where an organization is with its employee capabilities and where it needs to be. Training objective and priorities are set to close the gap (Elliot, 1998).
Education is a crucial factor in determining how a nation will fare in the 21st century, or what is billed as the information age. Towards that end, educational bodies and learning institutions need to ensure that they have a relevant mechanism in place to produce a new generation of workforce (knowledge-based workers/k-workers) to excel in the knowledge-based economy (New Straits Times, 2002).
Training also needs analysis. Most organization did not determine what training is required. Task analysis and performance analysis are two main ways to identify training needs (Dessler, 2000). It’s often true that no one knows as the people actually doing it and so soliciting employee input is usually wise (Freeman, 1993). From the analysis will help the organization improving the organization training methodology and can e reviewed from time to time. It will help the organization in controlling their expenses and their productivity.