Organizational performance is a pivotal measure of an entity’s success. It encapsulates the collective effort and synergy of its employees and stands as a yardstick for evaluating a company’s performance against its objectives. Training, often misperceived as a mere sales booster, is a strategic tool that profoundly impacts organizational performance. A case study of Omega reveals the consequences of overlooking the broader potential of training and focusing solely on sales figures. Effective training, as supported by research, yields positive outcomes across various performance indicators, encompassing cost efficiency, productivity, gross profit per employee, market ratios, sales revenue, and ROI. The alignment of training strategies with an organization’s unique vision, mission, and values is paramount. Selecting the appropriate training approach—be it Reactive, Proactive, or Active Learning—is crucial. The case of Omega underscores the importance of adopting an active learning approach to equip employees with the necessary skills and insights, taking into account stakeholder input. Ultimately, this assessment underscores the pivotal role of training in enhancing organizational performance.
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As per (Delaney, 1996), organisational performance is one of the key indicators of the success of the
organisation. By definition, it refers to the way in which the people comprise an organisation work
together. Also, it is the analysis of the performance of the company when compared to its aims and
objectives. In order to maximise the organisational performance, training is considered a strategic
tool. However, many business owners consider it as a vehicle to drive the sales of the company.
Omega case is one of the examples wherein the management implemented training strategy to
increase the sales quota instead of focussing on enhancing the performance of every employee. As per
(Fiedler, 1996), training is one of the strategic tools adopted in organisations to increase the efficiency
of the workers and performance as a whole. Training has positive effects on indicators of
organisational performance including cost savings, productivity, and gross profit per employee,
market ratios, sales revenue and ROI. It is critical for an organisation to evaluate how it uses training
strategy and ways that can enable the training produce effective results. For instance, the management
of Omega did not realise the benefits of training strategy. They adopted training strategy to increase
their sales figures instead of motivating employees. Hence, it led to complete failure of their training
strategy and they could not reap the benefits of the strategy effectively.
In order to ensure that employees are equipped with appropriate skills and competencies, training and
development plays a critical role. For this, it is critical to adopt right kind of training strategies suiting
the requirements of the organisation. Every company has its own vision, mission and values and
hence, training strategy varies accordingly. As per (Bartlett, 2001), choosing the right kind of training
ensures that the workers possess right kind of skills to run the business. There are different training
and development approaches that can be adopted by an organisation. These approaches are Reactive,
Proactive and Active Learning. The reactive training approach is a traditional approach wherein the
training is provided in classes. The proactive training approach is a modern approach wherein the
learning activities are integrated with business objectives. The active learning approach is the one
where the trainees ask questions from the trainers and learn from it. In modern organisations, active
learning approach should be adopted since it helps the employees hone their skills and knowledge
(Waldman, 1991).
As far as the case of Omega is concerned, the management should have taken active learning
approach in order to enhance the skills and knowledge of its employees. Also, they should have
examined the current environment and determine the issues which are not related to sales but
motivates the employees. It is also critical to include the opinions of the stakeholders such as
employees, managers and customers in the planning process. Their role will be to propose an effective
training package which can train the employees and prepare them to cope up with the uncertain
situations. Overall, it can be concluded that training is an important factor to increase the
organisational performance.