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Training and Performance in Small Firms

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Training and Performance in Small Firms
Training and Performance in Small Firms
1. Jane Bryan
1. Cardiff Business School, UK
Abstract
This article explores the relationship between training and growth in small manufacturing businesses. Research on training undertaken at the macro-level highlights a series of earnings and productivity returns. However, firm-level research has generally yielded more ambiguous results. A review of small firms research indicates that the relationship between training and growth has rarely been considered within the wider context of other factors that may influence growth. Training literature also appears to be more concerned, perversely, with its impacts on firm inputs (employment growth) rather than output (sales) growth. Other considerations also complicate understanding of the relationship between training and performance, since training may be provoked by employment growth (but not theoretically by sales growth), and has a tendency to be associated with larger firms. These considerations are examined with respect to two types of training (in-house training and ex-house management training) using information from a sample of 114 small manufacturing firms in Wales.

Employee training is a tool that managers can utilize to help employees bridge the gap between their present level of performance and their desired level of performance. The challenge for the organization is to design training options that give employees the information or skills they need and then measure whether those training options were effective in producing desired outcomes.
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Background
Managers have different views of how much training is needed for an employee to produce desired performance outcomes. It 's important to understand that most employees do not come to their jobs with the total knowledge and experience required to perform perfectly. They need a manager



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