A review and critique of research on training and organizational-level outcomes

Abstract

This paper aims to advance understanding of the effects of training on organizational-level outcomes by reviewing the results of previous studies that have investigated the relationship between training and human resource, performance, and financial outcomes. The results of meta-analysis from 67 studies suggest that training is positively related to human resource outcomes and organizational performance but is only very weakly related to financial outcomes. The relationship between training and firm performance may be mediated by employee attitudes and human capital. Furthermore, training appears to be more strongly related to organizational outcomes when it is matched with key contextual factors such as organization capital intensity and business strategy, in support of the contingency perspective. Further, training is related independently to organizational outcomes in support of the universalistic perspective of strategic human resource management rather than a configurational perspective. The paper concludes with a critique of previous studies and directions for future research. Particular emphasis is given to the need for future research to integrate individual-level (micro) and organizational-level (macro) training research, models, and theory.