Situational Analysis and Action Plan

Situational Analysis and Action Plan

Abstract

When an organization invests in its employees and allows for them to learn new information, re-learn and reinforce existing knowledge and skills, it gives the employees time to think and consider what new options can help them improve their effectiveness at work. Training and development is used as a means for enhancing skill development and improving workplace behaviors. It allows for the employees to become more effective by learning new skills pertaining to their work, as well as, take on bigger challenges that may involve changing job requirements. It will also allow for an organization to develop a more operative, efficient, productive, and motivated work environment. Organizations that make large investments in people typically have lower employee turnover, which is associated with higher customer satisfaction, which in turn equals higher profitability. According to the American Society for Training and Development, investment in employee training enhances a company’s financial performance. An increase of $680 in a company’s training expenditures per employee generates, on average, 6% improvement in total shareholder return. Although training and development has its benefits, does it really impact the bottom line? In this paper, I will attempt to find the answer to this question.

Introduction

Many companies have suffered during these economic times, so as a result, the budget for training and development has been reduced. Organizations don’t realize that by them enhancing their developmental programs, it will actually produce bottom-line payoff over time. The right training will not only lead to increased productivity and customer satisfaction, but also at least a possible 20% jump in profits. Untrained or poorly trained employees cost significantly more to support than well-trained employees do. Training affects employee retention and is a valuable commodity that, if viewed as an...