ТHE IMPACT OF THE INVESTMENT IN EMPLOYEE TRAINING ON THE PROFIT OF SMALL COMPANIES

Abstract

In order to survive in the market, managers need to be constantly looking for the best solution that will enable them to survive in the dynamic business environment they face in their daily lives. Today, human resource management is not just hiring and firing people, administering salaries, designing and implementing benefit programs, and implementing the strategic intentions of top management, but also plays an active role in formulating business strategies (Khanka, 2003). This paper focuses on the review of small business literature and the importance of training and productivity development of employees in the small business sector. The structure and program of employee training and development will also be reviewed so that we can finally draw conclusions about how this affects employee performance. Today's global economy is having a major impact on the difficulty of staying competitive and making a profit. Whether it is a company that offers customers a tangible, in fact physical product or a company that offers any service, a trained employee will be much more successful in selling that product, that an employee who has little or no knowledge of it, or no sales knowledge. The training focuses on making employee development activities for their current jobs and the development prepares employees for future roles and responsibilities. Organizations that invest in effective training and human resource development tend to achieve both short-term and long-term benefits. Given previous research on the interference of employee training in the operational process of companies, the purpose of this paper is to continue the study and clarify how companies that invest in employee training should apply, formalize and implement managerial functions in the desired workforce, and at the same time to have a successful functioning.