Final answer:
Training programs within organizations aim to enhance employee performance and align with company growth strategies. They are a key investment in human capital that has demonstrated effectiveness in improving organizational productivity and employees' earning potential. Performance appraisals are used to assess the necessity and success of these programs.
Step-by-step explanation:
Impact of Training Programs on Employee Performance
Effective training programs are crucial for optimizing employee performance in organizations. These programs are designed to improve human capital by enhancing knowledge and skills, which ultimately contribute to an organization's productivity and profits. A meta-analysis by Arthur et al. (2003) highlighted the effectiveness of various training methods, including self-instruction, lectures, discussions, and computer-assisted training. Training can manifest as orientation, continuous professional development, and specialized training for job-specific duties. Organizations aim to upgrade their employee's capabilities not only to benefit the individuals but also to align with the company's growth objectives. This is reinforced during performance appraisals, where identifying needs for training or the success of training programs plays a role in employee development and organizational competence.
As employees enhance their skillsets, either through employer-provided training or external opportunities, they become more proficient in their roles. This proficiency aids in the division of labor and specialization, thereby increasing company-wide productivity. The investment in human capital is a vital contribution to the economic vitality, both for the individual in terms of higher earning potential and for the broader economy through efficient resource use and the circular flow of economic activity.