Strategic Objective
All organizations must manage four resources: money, equipment, information, and people. Investments in better equipment may speed up production or reduce waste. Information is power; data about products, prices, and customers are essential to every business. Investments in training and development of employees can make them more productive or more effective in their jobs, directly contributing to the bottom line.
Bu rke and Day's (1986) meta-analysis of managerial training effects
(across six training content areas, seven training methods, and four types of training outcomes) showed that managerial training is moder- ately effective. Collins and Holton (2004), in their evaluation of 83 stud- ies from 1982 to 2001, including education, government, medical, and military organizations, came to a similar conclusion. Even a moderately effective training program can have a substantial effect. A training program for 65 bank supervisors was found to cost $50,500, but the util- ity to the organization was over $34,600 in the first year, $108,600 by the third year, and more than $148,000 by the fifth year (Mathieu &
Leonard, 1987).
The purpose of training and management development programs is to improve employee capabilities and organizational capabi liti es.
When the organization i nves ts in i mproving the knowledge and skills of its employees, th e investment is returned in the form of more pro ductive and effective employees . Training and develop ment programs may be focused on individual performance or team performance.
The creation and i mplementation of training and mana