CHAPTER 1 RESEARCH PERSPECTIVES

1.1 Introduction Employees are said to be the most valuable assets in an organization, and that an organization is only as good as its people. Only through them can organizations achieve their objectives. It is therefore important that employees possess the necessary skills, knowledge and abilities (SKAs) in order that organizations achieve their goals and remain competitive and successful. A formal approach for organizations to update employees acquisition of job-related SKAs is by training. Research claimed that training is an important factor that could facilitate a firms expansion, develop its potentials and enhance its profitability (Cosh, et al, 1998). Tung-Chun (2001) also agreed that educated and well-trained employees are a prerequisite for an organizations competitive advantage. In order for organizations to enjoy the returns on training investment, the training itself must first be approached systematically. Systematic means that there are certain steps that organizations need to take in training and developing their employees. These steps begin with an identification of training needs, designing and developing an appropriate training to serve the needs, implementing the training according to plan, and evaluating the training program to determine whether the original needs have been achieved. These steps are more popularly known as the training cycle and a lot of training scholars agree that these steps are necessary to ensure training effectiveness (eg. Blanchard and Thacker, 2003; Goldstein and Ford, 2002; and Noe, 2005).
REF1(TRAINING NEEDS ANALYSIS (TNA) PRACTICES: A SURVEY OF THE TOP 1000 COMPANIES IN MALAYSIA. VOT NO.: 75171) Rossilah Jamil (2006)

2. Much less is known about training and its effects on productivity. There is a body of training research based on individual responses to training questions in worker-level surveys; they show that the likelihood of training, and their returns as reflected in wages, are higher in industries characterized by rapid technological change, especially for the most educated workers (Lillard and Tan, 1992; Tan et al, 1992). However, since firm size and industry are often the only information available on firms, little is known about the employers role in training, or trainings effects on firm-level productivity, which must be inferred indirectly from wages. Training research using firm data is more limited. Exceptions are two studies by Bartel (1991, 1992), one using a sample of publicly traded U.S. firms to investigate the impact of training on a simple measure of output, the other using employee data from one American company. They indicate that training has a positive impact on output, wage growth and job performance. 1.4 Thus, large gaps exist in our knowledge about training--its incidence among firms and in the workforce, its determinants, and its consequences for firm-level productivity and economic growth. No comparable effort is underway in developing countriesakistan, where the paucity of training information is perhaps most acute and the need for such data is greatest. Enterprise Training in Developing Countries:Overview of Incidence, determinants, and Productivity Outcomes Hong W. Tan and Geeta Batra September 1996

I Technological progress and structural labour-market change demand not only

anticipating new skill needs but also continuously renewing and adapting knowledge, skills and competences for an ageing labour force (Cedefop, 2008b). Continuing vocational training provided by enterprises is at the heart of this process, helping at the same time to raise productivity, modernise work practices and facilitate innovation. Promoting training in enterprises needs in-depth insights into training policies and practices in enterprises, the role

of social partners and the relevance of various public instruments. Skill shortages can constrain the expansion of output in the short-term and limit the possibility of diversifying productive structure in the long-term. In MNCs, there is increasing concern that the growth and development opportunities afforded by trade liberalisation may be circumscribed by a gap between the skills needed by industry and the output of educational and training institutions.3
REF3. It is recognised that there often exists long adjustment period between changing skills requirements of
industries and the types of training and education provided by a country's education and training sectors (Iredale & Mitchell 1995; PECC 1998).

In this article, Geoff Hayton summarises the main findings of two major research projects investigating why and how workplaces provide training for their employees. This ANTA funded research involved 42 case studies and a national survey of workplaces in Australia. Published reports of the research projects are: Smith, A., et al. - 'Enterprise training: the factors that affect demand - final report volume 1' (TD/VIC 41.02); Hayton, G., et al. - 'Enterprise training in Australia: final report' (TD/VIC 49.02);
McIntyre, J., et al. - 'Enterprise .
Discusses the similarities and differences in the ways in which the training and development function is managed in multinational corporations (MNCs). Presents a comparative analysis (at three levels: international, industry and enterprise, with emphasis on enterprise) of enterprise-based training in the UK and Australia, set in the context of the food and drink industry; and some of the government policies that affect the industry. Includes case studies of MNCs that operate in both countries, giving details of training strategies. Concludes that similarities in training and development strategies outweigh the differences; contrary to previous studies which draw attention to the differences between organizations and industries. Points out the relevance to managers and researchers who have an interest in the human resource management function in large organizations that operate across borders. The management of training in multinational corporations: comparative case studies Charles Noble, (School of Business, Charles Sturt University, Albury, Australia)