HUMAN RESOURCE DEVELOPMENT PRACTICES FOR ORGANIZATIONAL PERFORMANCE

Abstract

The valuable impact the human resource development practices have on organizational performance is still debated Nevertheless, one of the dimensions considered a powerful source for the organizational development and company success is the employees' training. Due to the difficulty of verifying whether the training programs bring real benefits to the employees' effectiveness and firms' overall performance, evidence to sustain the value added is further needful. Starting from the fact that, among European countries, Romania has the lowest rates of participation in non formal training activities, the paper analyzes the practices implemented for the development of human capital and the role they play for business success. The study is conducted on 112 various sized companies and is based on questionnaires and interviews addressed to the company management. The results show that the number of trainings held for the employees is not correlated with the total income figure. Still, certain types of trainings and the employees' formal education get to be more associated with a higher gross income of the company. The results prove that just implementing training programs without well established development objectives, according to the real needs of the organization is not efficient for the firm. While acknowledging that the relation between training programs and organizational performance is not always a direct one, the paper discusses the factors mediating this relationship.