Effective training and development — Edexcel GCSE Business
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Effective training and development explained
Effective training and development covers 2 specification points, including ● different ways of training and developing… and ● the link between training, motivation and….
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Open a point below for its explanation and revision guidance.
How businesses train and develop employees: ● different ways of training and developing employees: formal and informal training, self-learning, ongoing training for all employees, use of target setting and performance reviews.
Effective training and development improves employee productivity and retention. Formal training involves structured, planned sessions, such as an external first-aid course, while informal training occurs naturally on the job, like shadowing an experienced colleague. Self-learning requires employees to take initiative, perhaps by completing online modules independently. Businesses also provide ongoing training for all employees to keep skills current with changing technology. Development is supported by performance reviews (appraisals) where managers and employees discuss progress, and target setting, which provides clear, measurable goals to motivate staff and guide their future training needs.
Why businesses train and develop employees: ● the link between training, motivation and retention ● retraining to use new technology.
Training and development are crucial investments that directly impact employee motivation and retention. When a business provides training, employees feel valued and empowered. This increased motivation makes them more loyal, significantly improving retention rates and reducing costly staff turnover. For example, a retail company offering management training will likely keep ambitious staff who might otherwise leave for promotions elsewhere. Furthermore, businesses must actively retrain employees to use new technology, such as automated checkout systems or updated inventory software. This ensures the workforce remains competent, efficient, and adaptable to changing market demands, preventing the business from falling behind its competitors.
Your focus
- Differentiate between formal, informal, and self-learning training methods.
- Explain the purpose of ongoing training for all employees within a business.
- Analyse how target setting and performance reviews contribute to employee development.
Show all 6 objectives
- Explain the relationship between employee training, motivation, and staff retention.
- Assess the reasons why businesses need to retrain employees to use new technology.
- Evaluate the impact of training and development on overall business performance.
Effective training and development flashcards
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Training and development
Effective training and development exam tips
Marking Points
- Identify formal training as structured, often off-the-job learning with specific objectives and designated trainers.
- Identify informal training as unstructured, on-the-job learning, such as mentoring or observing experienced colleagues.
- Explain that self-learning allows employees to develop at their own pace, often using digital resources or independent research.
- Discuss the importance of ongoing training to ensure all employees remain competent and adaptable to market or technological changes.
- Explain how performance reviews and target setting help identify individual training needs and motivate employees to improve.
- Explaining how training increases motivation by making employees feel valued and confident in their roles.
- Linking increased motivation from development opportunities to higher staff retention and lower turnover costs.
- Identifying the necessity of retraining staff when introducing new technology to maintain operational efficiency.
- Analysing the long-term financial benefits of training against the short-term costs of implementation.
Examiner Tips
- 💡Link the method of training to the financial resources of the business; informal training is usually cheaper than formal training.
- 💡When discussing performance reviews, emphasise their role in setting future targets rather than just looking at past performance.
- 💡Use the concept of self-learning to demonstrate how businesses can encourage employee autonomy and reduce direct training costs.
- 💡Always link training back to a specific business benefit, such as reduced recruitment costs due to better retention.
- 💡Use the context of the case study to identify what type of new technology might require employee retraining.
- 💡When evaluating training, weigh the immediate financial costs against the long-term gains in motivation and productivity.
Common Mistakes
- Equating formal training exclusively with external training; correction: formal training can happen internally as long as it is structured and planned.
- Assuming performance reviews are only used for disciplinary purposes; correction: performance reviews are primarily developmental tools used to set targets and identify training needs.
- Thinking ongoing training is only for new employees; correction: ongoing training applies to all employees throughout their career to maintain and update skills.
- Error: Confusing retention with recruitment. Correction: Retention refers to keeping existing staff, whereas recruitment is about hiring new employees.
- Error: Assuming training only benefits the employee. Correction: Emphasise that training directly benefits the business through higher productivity and lower turnover.
- Error: Stating that new technology automatically improves efficiency. Correction: Explain that new technology only improves efficiency if employees are adequately retrained to use it.