Training practices and organisational performance: A comparative analysis of domestic and international market oriented Organisations in Central & Eastern Europe

Abstract

The paper explores organisational level training practices in the Central and Eastern European (CEE) region and tests their impact on overall organisational performance. We draw upon data from the CRANET international survey of HR practices in order to provide a comparative overview of training and development in selected CEE Countries. Distinguishing between organisations focusing on the international and on the domestic market, and drawing upon data from 1147 companies in eight countries (Bulgaria, the Czech Republic, Estonia, Hungary, Lithuania, Slovakia, Slovenia and Serbia), we examine training practices and approaches and test their impact on organisational performance. Our findings demonstrate that the use of more developed training practices contributes to better organizational performance assessed by reference to service quality, productivity, profitability and rate of innovation. The market focus of the organisation in terms of serving a domestic or an international one also appears consequential with those operating internationally recording more extensive training practices.