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  • Sahil Shaikh

Expansion of Employee Development

core research mechanism. The data that should be collected for this organizational study should be analyzed using ordinary least squares multiple regression as the focal point of an organization's findings should have a positive and significant effect of development on performance of employees and should co-relate to a point that there is positive and significant effect of an employee’s learning and education which impacts their performance. There is positive and significant effect of career development on Performance in businesses world wide. It is therefore recommended that organizations should increase the level of their employee learning to improve their employees’ scope of accommodation in the organization and also to improve overall organizational performance. Learning policies and career development activities in organizations should continually be increased to ensure that employees learn new abilities and have adequate knowledge since its effect on the overall performance since education affects employees’ performance, individual educational attainments are not only part of a company’s development but also a part of a community’s core assets. In today’s article, I am discussing how learning and education builds employees, how education is proportionate to professional learning, and how although educational level is a continuous variable, and how to measure to measure it categorically in an organizational setup.

The Human Capital Theory

Employees are the fundamental asset and crucial elements for gaining competitive advantage of any organization and facilitation & training are essential tools for its actualization. The uniform level of competency, skills, and ability of the employee workforce of an organization influences its ability to preserve its obtained positions and gain competitive advantage in the business world. For the moment, employee’s competence, skills, and pro-activeness is directly proportional to the level at which organizations can compete with others.

In countries developed or developing, evolution of manpower resources is highly needed in virtually all organizations for its effectiveness. Deficiencies in knowledge, skills, and ability among employees, in certain geographical area’s particularly those of Asia, Africa, and Latin America, are remarkable. Development is necessary to ensure a steady supply of employees that are technically and socially competent, adept of developing their careers into specialist departments or management positions, and therefore a frequent need for the process of employee development. Over the years, organizations have started allocating huge sum of money in their budgetary allocation towards the development of its employees to enable them to perform their job functions effectively. Despite that, many organizations are still confronted with challenges in the area effective performance.

It’s about time we recognize that employees’ formal education determines their earning power. Human Capital is not equal to Human Resources, human resources is things needed to get done such as Hiring people & getting payroll done and stuffs like that Human capital is really how to use people effectively, and that’s what it really means.

The approach of human capital and strategic administration of human resources are an every day affair in organizations in terms of ideology and techniques. The term of “human capital” is treated as a core element in developing the credit of an organization, since it is a continuous viable competitive edge and boosts and employees’ efficiency. A few organizations apply the rules of human capital theory to justify and convince the ability to create useful competitions between organizations by means of evolving individual human resource capabilities. Accordingly, in the present situation, the role of human capital in an organization and the characteristics of human capital that have been studied, the results indicate that the common index, which is important at all levels of management in the organization, is human skill. Those who work in the central core of the organization must develop higher skills. These people must have enough knowledge, information, innovation, and creativity to increase the customer's satisfaction and create competitive advantage for the organization.

Becker believes that human capital, physical capital, and financial capital are different aspects of capital, however, their difference is derived from the fact that an individual cannot be separated from their skill, health, and values, while they can be separated from their assets and properties. Therefore, the most sustainable capital is human capital. Formal education and training are vital tools for improving the capacities of production. Moreover, we should consider the investment in human capital as the criteria for educational or learning registration.

Concept of Development

Development can be seen as the use of human resources to quantitatively change an employee’s physical and biological environments to their benefits or can also be involving the introduction of new ideas in to the social structure and causing alterations on the patterns of the organization and social structure. We can look at development as a means of increasing the growth of employees along with that of the organization so that they can be fit for available higher positions within their capacity. Development deals with improving human and interpersonal relations

Employee development is gaining an increasingly demanding and vital insistent for organizations in the current business environment. Hence, organizations need to devote and endow continuous employee development in order to cultivate employees as well as the organization success. Development is a process that strives to build the capacity to achieve and sustain an advanced relevant state that assists the organization or community and the world around them. However, note that employee development enables and increase their market value, earning power and job security. Development refers to activities leading to the acquisition of new knowledge or skills for purposes of growing. Organizations provide employees with development programs in order to enhance their capabilities.

Concept of Performance

Performance is characterized as outcomes and behavioral reaction. It can be expressed as the ratio of gross profit to sales or return on capital employed. Performance in all its glory is termed as the achievement of specific assignments measured contrary to prearranged or comprehensible standards of accuracy, efficiency, integration, cost and speed. Employee performance can be embodied in improvement in production, ease in using new technology and highly motivated workers.

The conduct and performance of the organization cites those attitudes' that have been negotiated or measured as to their contribution to organizational goals. Performance is concluded when executives certify that worker actions and productions are corresponding with the establishment’s objectives. Now, in terms of formal association, performance is a worth of receiving improved consequences from the entire association or groups or persons in it, through accepting and handling performance in an established background of strategic objectives, principles and proficiency necessities. Performance should be checked by resource operating, economical benefits, the conservation and increase of capital value in a certain period and should be defined as the outcome or contribution of employees to make them attain their goals. Performance is the process of increasing sales, profit, efficiency and effectiveness in the organization. It is a process of having adequate sales, increase in branches and increase in customer’s base for the organization.


Right learning sessions coupled with great facilitators will always have a positive and significant effect of development on Performance of employees and this further implies that employee development (education and career development) alters the effect of performance in an organization. In line with a statistically significant relationship between training/development on performance, we can disagree with some who find a statistically significant relationship between the training and development on performance as a negative parameter.

In line with human capital development approach which states that any learning, training, and education are the pivotal and indispensable part of capability, competences, skills, expertise and abilities of the workforce that contributes to performance, will always be an investment because it is believed that it could potentially bestow private and social benefits. Learning and earning power are correlated, which means, in a manner, that the more learning an individual has a grasp on, the more they can earn, and that the abilities, knowledge and credential that education provides can be transferred into the work in terms of productivity and profitability.

This implies that career development positively affects performance of any organization. Furthermore, on a general view, we can conclude that development of employees will go a long way in significantly improving the overall organizational performance as the employees are more equipped to better discharge their responsibilities.

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