1.0 IntroductionAbu Dhabi National Oil Company is an organization in the Middle East consisting of a group of companies. These groups of companies are distributed throughout the entire Middle East region. In order to survive the competition within various operational regions, the company has focused on developing employee skills through training. Middle East is known for high dependence on oil and its products. There are scores of companies dealing in oil products. For this reason, competition is very high for companies such as ADNOC operating on such products. To counteract high competition, such organizations need to develop human resource capital through training.
The performance of an organization such as ADNOC depends on the performance of its workers and how their skills have been developed by the company. Similarly, organizational performance affects organizational growth. Currently, training is an important facet of business operations. It has been argued by many scholars that it increases employee effectiveness and efficiency. Shaw (2013) has argued that companies can benefit extensively by training their employees owing to the fact that well trained workers bolster the productivity and proceeds of an organization.
Workers who receive constant training are better performing compared to those who do not receive any training at all. Training has an effect on skills and capabilities of employees. The performance of a worker is dependent on factors such as skills and job satisfaction. Therefore, training, employee development and organizational development are three concepts which cannot be separated from each other. Many researchers have argued in support of the fact that training positively affects organizational performance. Despite the fact that they talk more about organizational performance, its results and effects, less has been done in terms of putting it into practice (Kaufman, 2006).
Some employers have applied this concept and benefited extensively from it. ADNOC provides a good example of such companies that have benefited from training and development of its employees. 2.0 Training and DevelopmentPerhaps, the best way to examine this crucial factor of an organization is by first defining these two terms. Many scholars have put forward their personal definitions of the terms ‘training’ and ‘development’. Despite the fact that they define using different words, they all revolve around one ideology.
Salvi, (2013) has simply defined training as an educational process in which people learn new information, re-learn and reinforce what they already have. In addition to this, training gives an opportunity to workers to reflect on other options that are helpful in bolstering effectiveness in work. Training is of great importance because of the fact that it enhances upward mobility at the same time helping employees adapt to changes in technology. There are many other writers who have contributed in defining the term ‘training’.
Their definitions are related to Salvi’s. Training has been found to impact an organization in two ways. A more direct effect of training is boosting organizational performance through development of employee skills for service delivery. A rather indirect effect is staff retention. If the employees are satisfied with what they are being offered by an organization, their retention levels rise. It can therefore be argued that training offers motivation to workers. Workers in any organization need attention from their administrators. Training is an indication to them that the organization is concerned with them.
Shaw, (2013) points out the fact that training increases employee morale and loyalty to the organization. If workers strongly belief that they are being offered outstanding training, there are less chances of them exiting. In the same way, Donald, (2009) has argued in support of Angelo Kiniki and Robert Kreitner’s idea of “Pygmalion Effect” of training. Increased expectations among the employees will lead to increased output. Research has shown that workers who receive consistent feedback, training and increased expectations are likely to deliver best (Donald, 2009). From these, it is quite clear that training has direct and indirect benefits to an organization.