Training And Development In Organization

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Question :

DIscuss the need and importance of training and development in an organization along with the interdependence between the two policies of training and development.

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Answer :

Final Exam Question

Training and development

Training and development function in any organisation is concerned towards bringing the performance improvement in individuals as well as the groups. If, training and development are compared a stark difference can be gathered. Training is more concerned with emphasising education. The education relates to certain skills, or behavioural aspects, adding to knowledge base or bringing a shift in the attitude. The work effectiveness gets improved and there is a lot improvement in the skills. Whereas, development is more of a pro-active process that objectifies in meeting the future needs that an employee might have. It is more about building the capacities that impart benefit not only to the organisation but to the social community and the rest of the world (Bell, Tannenbaum, Ford, Noe, & Kraiger, 2017). 

John F. Kennedy, has successfully quoted,

Leadership and learning are indispensable to each other.”

Training and development however are based on an assessment of needs of the organisation and the employees. The requirement has to be assessed before any training or development plan is built. The need assessment basically helps in deriving the areas for where the objectives are required to be accomplished by imparting a special learning. After there is a proper analysis of the requirement where training is needed and the employees who need it, only then a proper training and development plan can be executed. A need analysis has to be undertaken to identify the learning needs (Larsen, 2017). 

The advantage that training brings to an organisation is well quoted by Jack Welch, former CEO of General Electric,

An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.”


Julie Stich, the Associate Vice President of Content at International Foundation of Employee Benefit Plans once quoted,

“Benefits are an important way to attract and retain key talent.”

The payments that are extended to the employees beyond their wages are counted under the scope of benefits. The benefits need not be extended in the monetary form itself. Employee’s expenses relating to insurance, contribution to their pension plans, share in the profits etc. all form a part of benefits extended to employees (Mamorsky, 2018).

Anne M. Mulcahy once said,

Work life benefits allow companies meaningful ways of responding to their employees’ needs; they can be a powerful tool for transforming a workforce and driving a business’ success.”

As quoted above, these benefits that are additional to wages, when extended to employees, offer a lot of benefits to the organization.  The employees feel connected as there is a feeling that their future is being thought for. These benefit plans form a part of the overall reward system. The employees’ health as well as morale is induced high which keeps them motivated and regular to work. The organization is in a better place to retain their key employees. When the regularity is boosted, it eventually leads to increasing overall productivity for business (Jaworski, Ravichandran, Karpinski, & Singh, 2018).


A wonderfully phrased quote was once quoted by Robert Bosch,

I don’t pay good wages because I have a lot of money; I have a lot of money because I pay good wages.”

The quote digs the real world of organizations nowadays. To increase the work efficiency, there is a need to retain the key workforce stuck to business. That could only be done, if the organization pays the employees or the workers a good sum depending on their work. Wages and salaries refer to that remuneration only. It is a payment that is made to the employees or the workers for the work they have performed i.e. the one for which they have been employed. The payment for wages and salaries in done either in cash or equivalent to cash form but usually not in kind. However, there is a certain difference between the terms wages and salary. Salary constitutes the certain or fixed amount paid to the employees at specific periods, whereas wages include payment on hourly or daily basis to the workers (Brouillette, Lachaine, & Vincent, 2018). 

Stephen C. Hogan has once rightly quoted that,

You can’t have a million – dollar dream with a minimum – wage work ethic.”

This is so correctly said. The organization cannot act like a frog in a well while paying to the employees or workers. The payments that are made to any of either the employees or the workers have to be according to the rates running in market. Paying wages or salaries that are no less than the competitors enable an organization to retain their workforce. The new talented people can also be attracted only when the organization has a good pay scale. Moreover, remuneration stands out to be the best and effortless way to keep the workforce motivated (Vaisburd, Simonova, Bogatyreva, Vanina, & Zheleznikova, 2016).

How do training & development, benefit and wages/salaries affect each other?

All the elements that have been discussed above largely affect each other. They kind of form a vicious circle casting effect on the other element. Whenever an employee is hired in business he is offered a certain level of pay in form of salary or wage, depending upon his skill set. Any kind of improvement in the pay scale is offered when the employee outperforms his own performance. This can happen only when the employees improvement needs are analyzed and a training program is offered to him to bring improvement in the concerned skills. These skills need constant trainings to be polished. However, in the modern era, only paying salaries or wages could not keep the employees motivated to stay. An extra effort has to be put in form of employee benefits (Kiruja, & Mukuru, 2018). Along with retention, this keeps the employees motivated. The employees who are motivated are in a better edge to effectively utilize the training programs for their skill set development and outperform oneself. These three elements although perform different work for an organization and the employees, but ultimately helps in motivating the workforce for a common goal. This motivation is the key to employee retention and workplace success (Konings, & Vanormelingen, 2015).