HRD in 2020:The Influence of Training In Labour Productivity
Luís Diniz, Lusíada University:
Stream: 5
Submission type: working paper
Abstract
In modern societies, Continuing Education has an increasing role in the development of human resources. The challenges of modernization have led to companies, with their continuing training in the workplace, to bet on the development and improvement of new skills. Companies are thus increasing their training responsibility which in turn leads to an increase in capacity.
This study aims to understand the impact of Continuing Education in Labor Productivity in industrial enterprises.
The aim is to deepen the understanding of how the training arrangements in the workplace, contribute to increase productivity and at the same time suggest a theoretical model for the outline of training practices.
Keywords: Productivity, Continuing Education, Adult Education, Project.
1. Introduction
The research project that is presented below focuses on the theme of Continuing Education and the impact of this on productivity. I am a technical auditor and work as a professional person in several companies in the region north of Portugal. After a few meetings with the administration of companies, found that one of the problems faced by firms is low productivity, largely due to the lack of political training. Hence my interest in making a critical inquiry regarding the impact of training on labor productivity in industrial enterprises, and consider human resources as the most important element of business.
In the 60's the concept of permanent education, failing to believe in an accumulation of fragmented knowledge. UNESCO (1972), considered as a man is to be unfinished and that continuing education is needed for a changing society. A change in society requires increasingly updates permanent, in other words, the lifetime irrespective of the position occupational each person occupies. The training is thus understood as an investment in skilled human resources of any organization, thus making the face of competitiveness demanded by the market.
Companies of today are confronted with increasing modernization, where the watchword is, increasingly, change or adaptability in the face of major changes and innovations we are witnessing today. The technological development is so rapid that it becomes worrisome, and in a country where the average skill level is low the problem worsens considerably.
Economic growth is mainly by increased productivity of existing resources in each country, however, beyond the physical resources is to consider the importance attached to human resources. You need skilled labor, prepared for the different tasks or functions, because a commitment to training should cover different hierarchical levels. Although watch on the one hand, this kind of stance, with the ultimate goal of productivity, forget, however, the critical path to get there with a more lasting success, investment in skills training. Technological advancement requires quality and modernity, is therefore in need, increasingly, a specialist permanent and updated.
The productivity of an organization may, in a decisive way, be affected by the adjustment that is done or not, the real learning needs of human resources of each company, the requirements of each sector, particularly the industrial sector in question. Training should therefore be integrated into human resource policies of each company and not the subject of the imagination of someone who suddenly implements a training offered in the form of advertising, "a training catalog," in most cases can not fill what they really want. Training for what? That is the question. Training to develop human capital, adapting people to tasks or functions depending on the position that each occupies, to form personal and professional achievement, involving everyone in the company's objectives, forming, in short, to increase productivity and development the economy of each country.
What is the impact of training on labor productivity in companies? Why is that Portuguese firms particularly in the industrial sector, mostly, do not bet on Continuing Education of his paintings, with a view to increasing productivity (qualitative and quantitative)?
This is the issue that will be analyzed throughout this work. Productivity has now assumed great importance in business, in a context of globalization we are witnessing. Productivity growth has major implications for the economy of our country, in a moment as critical as it passes through Portugal. The training is an investment that companies must do in order to help increase productivity. We live in a country where the average levels of qualification are too low, where the membership of the training is not sufficient and meaningful addition to this we have alarming levels of unemployment. People are the wealth of a country, but according to the National Statistics Institute, in the first quarter of 2006, yet 71% of the employed population Portuguese had only primary education or less. The skill levels of employers in Portugal are low making it one of the causes, in addition to others, the current economic crisis.
We have unemployed who performed the same tasks for years and suddenly find themselves with no alternative, since adaptation to new professions makes them immense confusion, sharing among them feelings of low self-esteem, considering outdated before the work. It is not uncommon to hear the expression "old but new to work to reform", now it only aggravates the economic and social situation of the country. There is waste of knowledge, experience and there is clearly lack the training made them more versatile. Also noteworthy is that age should not be determinant factor for learning, but a motivating factor for such, there should be support in this regard. If the bet is made within a company, the latter, human capital is more capable and competent that will profit more in the future. Power will install a disbelief at the sight of long-term results, however, the experience of those who have invested in human resources shows that the quality always comes to impose itself with obvious results.
People described as the most valuable resource manager, are rarely seen in terms of investment and profit. One of the most effective ways to invest in human resources is to provide workers with training to enable them to improve their performance (Godé, 1993).
The training tends to be operational, in other words, formed only for a specific competence, instead of thinking in a wider organizational development passing through betting on the personal development of each employee. More informed and motivated workers collaborate better with the objectives of the organizations, while working less sensitized and trained only for some tasks, only have the economic incentive, why not feel heard, their ideas have no echo in the company. Accordingly, the aim is to reverse this fact. Everyone has ideas that deserve to be heard, so the company only has to gain from this practice. Betting in this way also, in a cohesive organizational culture with shared values. Given the above, it is intended with this research:
- In depth knowledge in the Continuing Education and Productivity.
- Realize the importance of continuous training in companies, with a view to increasing productivity.
- Contribute to the social conscience / business, the need for continuous training, development / productivity of companies:
a) Raising awareness Administrators / workers to the need for continuous training (lifelong), at all levels.
b) Persuading Directors or Heads of the Departments of Human Resources, joined the Training of Personnel Policies of the company, through a comparative study of results among companies already active in this sense and others that are not yet aware of this.
c) Alerting the responsible Human Resources to consider investment in training for "catalog", in other words, a standard training "offered" by experts outside the company, compared to a design of more realistic training projects, designed by technical experts in Training, experts in "engineering project", the internal board meetings and, therefore, knowing the real training needs them.
The research will focus on the industrial sector.It was in the industrial activities that developed the theory and practice productivity. The industrial sector, particularly in manufacturing industries, is one where technological changes occur deeper and where one finds a greater need for training. The average qualifications in this sector, with basic education exceeds 50% of the workforce. (Gabinete de Estudos e Planeamento do Ministério da Educação, GEP, 1992).
The labor law in Portugal, concerning the right to vocational training, but our companies, the vast majority do not conduct training programs, considering it unnecessary. This obviously has a direct impact on business productivity, and the workers themselves, who thus feel unmotivated to work, including the inability to advance their careers, and earn a higher salary. It follows an obstacle to economic growth. It is necessary to modernize the Portuguese industry, to monitor the productivity rates observed in the European Union.
2.State of the Art
Human resources are a basic factor of competitiveness, since it depends on the potentiation of them too.
It was found that productivity in Portugal is among the lowest in the European Union, putting our economy in a difficult situation (Gago et al., 2003, p.17).
The Portuguese industrial firms have high percentages of absenteeism. The workers are not motivated. Most of the time the worker is a self-centered attitude, does not think in collective terms, does not try properly, so that the company's productivity increases, which could increase the profits of the company therefore had performed their expectations with the increase of wages and consequent increase in living standards.
The paradigm of today's society is essentially a globalization that is fundamentally characterized by a hyper-competitive, high complexity, high uncertainty, and trade liberalization led to limits thoughtless.
Given this reality it is essential to invest in education and training of people throughout life. The current expectation is that social learning is to make not only in schools but also in companies, and are increasingly diverse and complementary.
Contemporary education in our society there must be awareness of the role of knowledge as a factor in economic and social development. The acquisition / enhancement of personal and social skills is critical to the development of skills.
There should be a readjustment of training against the development of new technologies. It is necessary to learn new skills and knowledge, andunlearn knowledge outdated and useless. It is important to consider this dichotomy to make a competitive difference. The experiences of the person throughout life, in a variety of contexts, including labor, also influence the thinking, thereby producing knowledge in a non-formal or informal, that a positivist perspective, given that these experiments may not necessarily be forming. There is a deep relationship between knowledge and experience. The jurisdiction will result in the synthesis of theory (knowledge) and practice (know-how).
2.1. Conceptualization of Continuing Education
Conceptually we view training as "the systematic acquisition of skills, rules, concepts or attitudes that originates an improved performance in a professional context" (Goldstein and Gessner, 1998, p.43).
There is no initial training. Continuing education plays a role in correcting the shortcomings of the initial training (Malglaive, 1995).
The distinguishing feature is currently training its orientation in order to satisfy new requirements inherent to the various developments of contemporary society. The training is shown, as well as the formation following the initial training, covering all individuals entered the labor market (Cardim, 2005).
In Portugal, the Interministerial Commission for Employment (CIME) produced a document in which included, among others, the definition of Vocational Training, which is understood as a "set of activities aimed at acquiring knowledge, skills, attitudes and ways of behavior required for the exercise of functions of a profession or occupational group in any branch of economic activity.
It appears that this definition there is no clear distinction between training and higher education (Cardim, 2005), since in both cases the contents adopted as an essential criterion is professional; the purposes of higher education are they too professional. Moreover this definition does not allow to differentiate between areas that includes training.With the accession of Portugal to the European Community, the training has to be defined as logical support to employment policy, as shown by the basic law of the education system in 1986 (ibid.). The job market here assumes a particular focus in terms of training, with the State the definition of policies and coordination of training activities. Vocational training "inserted in the labor market", is primarily designed to assets employed and unemployed, is carried out by enterprises, training centers and other providers; covers initial training and continuous.
From the analysis of various formulations, there is a concept more rigorous training, which would "consist of the intervention school or after-school aimed at: a) initial preparation of young people and adults (active or not) for the exercise of any profession qualified technical or non-higher education and, b), the improvement of the assets of all levels of qualification and responsibility"(Cardim, 2005, p.23).
Vocational training is still shown, as well as "training that covers all organized and institutionalized educational processes subsequent to initial vocational training in order to allow adaptation to changes in technology and techniques, promote the social advancement of individuals, as well as allow their contribution to the cultural, economic and social "(Nogueira e Rodrigues, s / data, p.12).
Cruz (1998), in turn, believes that the Continuing Vocational Training covers several areas, including:
- Professional Development - following the initial training, designed to complement knowledge, practical skills, and behaviors within the profession to play.
- Conversion Training - training that is part of the training continues, seeking a qualification distinct from owned to pursue a new occupation.
- Recycling Professional - training designed to update or provide new knowledge, skills, practices, and behaviors within the same profession, because of scientific and technological progress.
- Promotion Training - training that aims to assign a skill level higher in the hierarchical scheduling professional.
Interventions for improvement, or continuing education course has a duration shorter than the initial training, rarely exceeding 40 hours (Cardim, 2005). The needs for improvement come from the difference between the level of skills required or desirable part of human resources and their actual performance or actual.
2. 2.Conceptualization of Labor Productivity
Portugal is a country that produces consumer goods and low technological level. The average productivity in the industry, despite the existence of companies with high levels of productivity remains low (Associação Industrial Portuguesa, AIP, 2003).
The century in which we have just entered is characterized by globalization, a knowledge economy, the advancement of technology. In this society, more than the traditional factors of competitiveness, what counts is to add value, are the resources that each country has and their ability to make efficient use of new technologies and creative. The productivity of the Portuguese economy is worth about 65% of Union average in purchasing power parity (Ibid, p.112).
Only 20% of the population 25 to 65 years has completed high school, and on the fringe of the different youth does not exceed 35%. As the European average of 70%, gives us a precise idea of the massive training effort that has been obliged to carry out. (Ibid, p.114).
It must be appreciated that the competitiveness of a company is no longer determined by low wages, increasingly marked by innovation, and so-called intangible factors, such as marketing, design, and quality.
The need to understand the environment to anticipate change is now a crucial challenge for the competitiveness of organizations. Faced with increasingly demanding markets firms are confronted with the need to dispose of mechanisms for monitoring and awareness of developments in the economic, social and cultural ideas in its sphere of action.
It is necessary to build a "society in Education" (AIP, 2003, p.238-239). Otherwise, one runs the risk of individuals, companies, organizations and the national economy become obsolete with regard to knowledge and innovation.
Productivity expresses the relationship between goods and services produced, and the factors used to produce it, and its calculation is carried out through the ratio output / input. In other words:
Partial Productivity = Input / Output
Should have some attention and care in the use of partial productivity, since any change of inputs within a company, can distort the analysis of productivity (Mawson et al., 2003). Labor productivity provides information for businesses helping them to make decisions at the strategic level (number of employees, wages, etc ...).
Contrary to what may seem, the level of labor productivity depends not only on workers involved in the production process. This indicator is generally all the factors that directly or indirectly influence productivity, such as capital accumulation, technological change and industrial organization (Center for the Study of Living Standards, CSLS, 1998).
The concept of productivity gathers consensus in economic literature (Webb, 1998; Rogeres, 1998, Aguayo et. Al. In 2000, among others). More specifically, expresses the relationship established between the outputs (goods and services) and inputs used in its production. It is calculated as focused previously, is via the ratio Input / Output (OECD, 2001).
For partial productivity means the productivity of a given input, such as labor, capital factor, etc.
The multi-factor productivity, or total, encompasses all the productive factors used in obtaining them.
Productivity is the most important economic indicator in individual terms, since its increase is presented as a key factor enabling the increase of living standards of societies (Arnold and Dennis, 1999). Productivity improvement is an underlying improvement in our standard of living because it is a decisive factor in the evolution of wages (Conselho Económico e Social, 2001).
In human resources in Portugal the situation is dire. Although education has progressed greatly in recent years, the legacy of the recent past, means that the levels of schooling in Portugal relative to the workforce, stay far behind the countries of the European Community. Small and medium enterprises, create jobs, mostly, but have no training ability. There is a functional illiteracy.
The productivity of factor production, corresponds to the ratio of the total yield with the help of this factor and the amount used of the same, so we have:
Specific productivity of labor productivity = final / labor (Folgado, 1966, p.11).
2.2.1. Gross Labor Productivity (GLP)