Human Resource Management


            This is a case study of a man by the name of Fred Price, who works as a factory hand within one of the most prestigious Northern Carolina factories, Northeast Tool. It discusses the factor that is very crucial for advancement in your field of work. This key factor is employee training and development. This case study seeks to analyze and assimilate: (1) what human resource training and development is and what it entails (2) the objectives of training and development and whether human resource training is necessary within the Northeast Tool Company, and (3) the benefits that it has both to the company and to the employee. A conclusion will then be drawn to establish whether the Northeast Tool Company and Fred as an employee made wise decisions, by taking the stances that they did, with regard to training and development.


What is HRM Training and Development

In simplified terms, training and development is used to refer to the act of imparting certain specific abilities, skill and knowledge to a person, in this case the company employee. It is basically an attempt that is put to improve an employee’s performance both current and future, by increasing their performance ability. This can be done through changing the attitude that an employee has, or by increasing their knowledge as well as their skills. It is very important for a company to investigate and determine which of their employees would be best suited to take the training (Dessler, 2003). In the case study, this is done through the use aptitude tests. This test will determine the employees that will be selected for the training. However, there are certain other factors that ought to be considered, before such as decision can be reached. This includes the performance abilities or deficiencies a person might have.

Although HRM training, development and education are complementary, they have very distinct definitions. As earlier mentioned, training is imparting knowledge. On the other hand, educating entails theoretical learning, for example some kind of formal education, while development refers to the opportunities provided by a company that allows an employee to grow. It is not predominantly skill oriented. It however places more attention to the use of general knowledge and the attitude that an employee has, to help them move up the employment ladder (Harzing & Ruysseveldt, 2004). In the case study, we can see that Fred requires the education if he is to rise the ranks. He says, “Someday I hope to manage this plant.” This he knows can only be done after a certain level of education is achieved. This motivates him even more to get the necessary education.

Objective of HRM Training and Development

It is very important that the company is aware of what it is that they seek to achieve through the training that they give to their employees. Among the major objectives for employee development and training include, assisting the organization to achieve it goals and purpose. This is because they are adding value to their key resource for instance its employees. The main objectives therefore are to ensure that an employee’s competencies are developed so that performance is also improved. It also leads to the growth of employees within the organization, therefore providing opportunities for in-house recruitment, when there are vacant positions. Training is an investment that the company makes. As the employees begin to perform better, the organization also benefits (McKenna & Beech, 2008). This is true within the case study, where we can see the growth of the Northeast Tool Company over the years. Industrial changes necessitated the introduction of computers and machinery into the company. After learning how to use the new equipment, they were then able to begin large-scale production of their products, therefore expanding their markets from Carolina to the rest of the world.

Benefits of HRM Training

To the Company

Training and development is very essential. The reason for this is that it allows a company to have competitive advantage over other rival companies. This is because, once the performance deficiencies are gotten rid of, then the employees are able to maximize there potential (Noe, 2006). However, it should be noted this is only true in situations where the employee required the training in order to perform better. Once a company has competitive advantage, its workers are also motivated to stay in the company. Therefore, labor turnover is also reduced. The training that the company offers also acts as a recruitment source. The organization is then saved the costs that they might have needed to spend when carrying out the recruitment and selection process.

The company will also greatly benefit in that the efficient production will also result in high profitability. In the case study, we see that the Northeast Tool Company could hardly afford to offer the workers the training that they required. This is because they made annual revenue of less than five million. However, they later came to find out that it was a worthy investment once they began raking in the profits. An improvement of the knowledge as well as the skills of its personnel will consequently motivate the workforce. This will help them to better identify with the company’s organizational goals. This also fosters openness, trust as well as authenticity, therefore bettering the corporate image of the organization, while improving the relationship between the managers and the sub-ordinate staff. It also helps the HRM determine the organization’s future needs, therefore making decision making as well as problem solving more effective.

To Fred (The Employee)

The employee on the other hand also has much to benefit from this. This is because; accidents that could have been caused due to lack of knowledge are eliminated. There is more job security, flexibility, stability and an increased capability for growth within the organization. This then makes employees more motivated in their work. An employee is also provided with an opportunity to further their personal goals, which they might have been unable to do before. It also helps the employee when making decisions, as they are more informed and can therefore make effective decisions while at the same time solving problems that they might face in their line of work (Truelove, 2001). It increases a person’s self worth and therefore motivation. This is because they have advanced to a greater level of education than they were before. A person is able to handle tension, stress, frustrations as well as conflict much better once they have received training.

They are able to take on leadership roles and their subsequent responsibilities. An example within the case study is when Fred seeks to pursue a two-year degree course so that he can one day be able to manage the plant. An employee also has job satisfaction as well as recognition. An individuals needs are usually satisfied, as the person is able to move on to achieve their personal ambitions. It provides the employee with growth opportunities within their field of work.


            The adoption of training and development by the Northeast Tools Company is a wise undertaking. This is because there are greater benefits to be achieved through it. This has set it apart from other competitor companies. It is therefore very important that this be maintained and be continually carried out within the company.

















Dessler, G. (2003). Human Resource Management: Gary Dessler. Upper Saddle River, N.J: Prentice Hall.

Harzing, A. W. & Ruysseveldt, J. (2004). International Human Resource Management. London, UK: Sage Publications.

McKenna, E. F. & Beech, N. (2008). Human Resource Management: A Concise Analysis. Upper Saddle River, N.J: Financial Times Prent.Int.

Noe, R. A. (2006). Human resource management: Gaining a competitive advantage. Boston, Mass: McGraw-Hill.

Truelove, S. (2001). Handbook of training and development. HRM in Action. Oxford, UK: Blackwell.



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