Strategic issues for training

It is widely accepted that improvements in the management of employees can contribute to the competitive advantage of companies. Indeed, human resource management (HRM) holds that the success of business strategy hinges on the development of a more strategic approach to the management of labour. Training is an element which is central to any assessment of the effectiveness of HRM strategies, and it is linked to HRM in three major ways: (1) Companies become dependent on the external labour market for their skills supply if they neglect it. (2) It creates an incentive to develop complementary aspects of HRM in order to protect the company’s investment. (3)Training has a symbolic value in so far as it demonstrates to employees the value the company places on them and can thus contribute to motivation.