The Impact of Employee Training and Development on Organizational Performance: A Strategic Human Resource Perspective

Abstract

The constantly changing business world of the 21 st century presents organizations with constant challenges, which require a skilled, flexible and motivated workforce. This paper examines how employee training and development can impact on organizational performance and more importantly, how Human Resource Management (HRM) can be strategically used to maintain the company in a competitive position. The study examines the role of continuous learning programs, skill development, and professional development in improving the productivity of employees, their job satisfaction, as well as the overall performance of the organization. Using theoretical models including the Human Capital Theory and the Resource-Based View (RBV), the paper will examine the correlation between investment in training and the business outcomes. According to the findings, effective training programs do not only enhance the competencies of employees, but also innovation, turnover rates, and commitment to the organization. This study brings out the fact that training and development in the knowledge-based economy has ceased to be a luxury but rather a necessity in long-term sustainability and success.