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Need for testing: every organization should provide training to the all employees irrespective of their qualification, skill, and suitability for the job etc. Training is not something that is done once to new employees; it is used continuously in every well run establishment. Further, technological changes, automation require updating the skills and knowledge. As such an organization has to retain the old employees. Specifically the need for the training arises due to the following reasons.
1. To match the employee specifications with the job requirements and organizations needs: an employee specification may not exactly suit to the requirements of the job and the organization irrespective of his past experience, qualifications, skills, knowledge etc. Thus management may find deviations between the employees present specifications and the job requirements and organizational needs. Training is needed to fill these gaps by developing and moulding the employee's skill knowledge, attitude, behaviour etc, to the tune requirements and the organization needs.
2. Organizational viability and the transformation process: the primary goal of most of the organizations is their viability and efficiency. But the organizational viability is continuously influenced by the environmental pressures. If the organization does not adopt itself to the charging factors in the environment, it will lose itself market share. If the organization desires in order to enable them to contribute to the organizational efficiency and to cope with the changing environment. In addition, it provides continuously to the organization process and development. The productively of the organization can be improved by developing the efficiency of the transformation process which in turn depends on enhancement of the existing level of the skills and knowledge o the employees. The achievement of these objectives mostly depends on the effectiveness's of the human resources at the organization processes. Employee effectiveness can be secured by the proper training.
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Optimizing cost of the compensation: compensation management is aims at optimizing cost of the compensation by establishing some kind of linkage with performance and compensation.
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