Training & Development Journal

Many organizations prefer internal manning of position than external hiring, for obvious motivational benefits and cost-effectiveness. Even though training emphasizes on increasing the performance level of an employee, a continuous training program enables the organization to develop employees for future responsible positions in the organization itself. The needs for training in an organization are primarily for updating knowledge, avoiding obsolesce, improving performance, developing human skills, imparting trade specific skills and finally stabilizing the workforce. All these ensure sustainable competitive advantage for an organization. This paper emphasizes on the above statement and tries to justify it with an empirical survey conducted on 5 different SMEs (Small and Medium Scale Industries) with 65 employees, placed on different positions categorizing as skilled and semi-skilled employees. The study was conducted in Bhubaneswar, the capital city of Odisha, India.