Training Effect on Performance


An enterprise’s productivity is closely correlated with the employee-related managerial system. Human resource (HR) can create values for an enterprise by finding ways to improve workforce managements that have a positive impact on performance.
Since HR has a significant influence on the overall management system, it is well positioned to create substantial added value. Several studies have shown that the implementations of appropriate management systems and strategies do contribute to productivity improvements under the considerations of cost and investment risk (Becker and Gerhart, 1996; Cusumano, 1988; Naik and Chakravarty, 1992; Truss and Gratton, 1994). Though HR activities are frequently acknowledged to play a central role in linking employee capabilities with the performance requirements of a firm, the specific form of this relationship is still open to debate. A manager can enhance productivity by building a sound HRM system having a set of specific HRM practices in different ways.

The search to identify a set of high performance work practices (HPWPs) that have a universal effect on performance became a dominant theme in many studies (Boselie et al., 2005; Combs et al., 2006; Guest et al., 2003; Wall and Wood, 2005; West et al., 2002). Typical HPWPs include employee involvement, job security, performance appraisals, performance related pay, training and recruitment policies (for a fuller list, see Youndt et al., 1996, p. 840). A number of recent studies showed strong support for the idea that specific sets or “bundles” of HR practices had a beneficial effect on a range of employee and organizational outcomes, such as improved productivity, profit, commitment and quality (Guest et al., 2003).

In recent years, much concern has been shown for the strategic involvement of the human resource (HR) and its effect on firm’s performance (Lahteenmaki et al., 1998; Rangone, 1999; Analoui, 2002) in high tech SME’s. The debate has led to the...