COLLEGE COLLEGE OF ECONOMICS AND MANAGEMENT (CEM)

COURSE CODE HRM 7103

COURSE UNIT STRATEGIC HUMAN RESOURCE MANAGEMENT
LECTURER’S PROF. LYDIA EMURON
NAME
SEMESTER TWO
YEAR ONE
TASK GROUP ASSIGNMENT
SESSION WEEKEND

NAME PROGRAMS REG NO.

1. ABDIASIS AHMED HAMUD MBA - FA 2023-01-13166

2. AHMED ABDULLAHI BASHIR MBA - FA 2023-01-13459

3. ABDISALAM ALI WARSAME MBA - FA 2023-01-13833

4. ABDIRAHMAN ABDINASIR ADAN MBA - FB 2023-01-13241

5. ADAM ABDULLAHI ALI MBA - FB 2023-01-13162

6. ANAS MOHAMED AHMED MBA - IT 2023-01-13566

7. SALAH SAMOW MOHAMED MBA - FA 2023-01-14571

 QUESTION:

WHAT ARE THE BENEFITS OF DEVELOPING EMPLOYEES IN AN

ORGANISATION

STRATEGIC HUMAN RESOURCE MANAGEMENT

GROUP PRESENTATION
BY

REG NO: 2023-01-13166

2023-01-13459
2023-01-13833
2023-01-13241
2023-01-13162
2023-01-13162
2023-01-13566
2023-01-14571

Date: 22, OCTOBER 2023

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1. INTRODUCTION...............................................................................................4
2. IMPORTANCE OF EMPLOYEE DEVELOPMENT MATTERS................5
2.1 Improved Employee Performance:....................................................................................................5
2.2 Enhanced Job Satisfaction:................................................................................................................5
2.3 Increased Employee Engagement:.....................................................................................................6
2.4 Talent Retention:...............................................................................................................................6
2.5 Adaptation to Change:.......................................................................................................................6
2.6 Innovation:.........................................................................................................................................6
2.7 Leadership Development:..................................................................................................................6
2.8 Competitive Advantage:....................................................................................................................6
2.9 Compliance and Risk Mitigation:......................................................................................................7
2.10 Customer Satisfaction:.....................................................................................................................7
2.11 Fostering a Learning Culture:..........................................................................................................7
2.12 Personal Growth and Fulfillment:....................................................................................................7

3. BENEFITS OF EMPLOYEE DEVELOPING.................................................7

3.1 Improved Skills and Knowledge:.......................................................................................................8
3.2 Increased Productivity:......................................................................................................................8
3.2 Enhanced Employee Engagement:.....................................................................................................8
3.3 Better Adaptation to Change:............................................................................................................8
3.4 Increased Innovation:........................................................................................................................9
3.5 Succession Planning:.........................................................................................................................9
3.6 Higher Employee Retention:.............................................................................................................9
3.7 Enhanced Teamwork and Collaboration:...........................................................................................9
3.8 Improved Employee Morale:...........................................................................................................10
3.9 Competitive Advantage:..................................................................................................................10
3.10 Compliance and Risk Mitigation:..................................................................................................10
3.11 Better Customer Satisfaction:........................................................................................................10
3.12 Personal Growth and Fulfillment:..................................................................................................11
3.13 Diverse Perspectives:.....................................................................................................................11
3.14 Organizational Growth:.................................................................................................................11

4. Strategies for Effective Employee Development.............................................11

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 4.1 Needs Assessment:..........................................................................................................................12
4.2 Set Clear Objectives:.......................................................................................................................12
4.3 Tailored Development Plans:...........................................................................................................12
4.4 Provide Training and Education:.....................................................................................................12
4.5 Mentoring and Coaching:................................................................................................................12
4.6 Job Rotation and Stretch Assignments:............................................................................................13
4.7 Feedback and Performance Reviews:..............................................................................................13
4.8 Continuous Learning Culture:..........................................................................................................13
4.9 Leadership Development:................................................................................................................13
4.10 Recognition and Rewards:.............................................................................................................13
4.11 Support for Further Education:......................................................................................................13
4.12 Feedback Mechanisms:..................................................................................................................13
4.13 Cross-Functional Collaboration:....................................................................................................14
4.14 Diversity and Inclusion Initiatives:................................................................................................14
4.15 Alignment with Business Goals:....................................................................................................14
4.16 Measure and Evaluate:...................................................................................................................14
4.17 Communication and Transparency:...............................................................................................14
4.18 Budget Allocation:.........................................................................................................................14
4.19 Stay Current:..................................................................................................................................14
4.20 Career Pathing:..............................................................................................................................15

5 INCREASED JOB SATISFACTION AND MORALE..................................15

5.1. Higher Productivity:.......................................................................................................................15
5.2. Lower Turnover:.............................................................................................................................15
5.3. Improved Job Performance:............................................................................................................15
5.4. Enhanced Innovation:.....................................................................................................................15
5.5. Better Customer Service:................................................................................................................16
5.6. Positive Workplace Culture:...........................................................................................................16
5.7 Health and Well-being:....................................................................................................................16

6. CONCLUSION..................................................................................................17
7. REFERENCES..................................................................................................18

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1. INTRODUCTION

Developing employees in an organization is a crucial investment that yields numerous

benefits. It not only enhances individual performance but also fosters employee
engagement and retention. Furthermore, employee development contributes to
organizational growth, innovation, cost savings, and reduced turnover. Employees are the
backbone of any organization. Investing in their growth and development can have
significant benefits for both the organization and the employees themselves. As
organizations evolve, investing in employee development becomes essential for
sustaining success in a competitive landscape. By prioritizing the growth and
advancement of employees, organizations create a culture of continuous learning and
improvement.

In the ever-evolving landscape of modern business, one of the most valuable assets any
organization can possess is its workforce. The success and sustainability of any company
depend significantly on the knowledge, skills, and commitment of its employees. As a
result, the practice of developing employees has become not only a strategic imperative
but also a fundamental cornerstone of effective human resource management. In this
discussion, we will delve into the myriad benefits of investing in the development of
employees within an organization.

From enhancing individual skills and competencies to fostering a culture of innovation,

from boosting employee engagement to ensuring compliance with industry standards, the
advantages of employee development are far-reaching. Through a structured approach to
nurturing talent and facilitating growth, organizations not only empower their workforce
but also position themselves for enduring success in a competitive business landscape.

This exploration will shed light on the multifaceted advantages that come with cultivating
the potential of employees, underscoring the significance of employee development as a
strategic tool for achieving organizational excellence. Let us embark on a journey

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through the myriad ways in which investing in employee development can transform not
only the workforce but also the very fabric of an organization.

2. IMPORTANCE OF EMPLOYEE DEVELOPMENT MATTERS

Importance of Employee Development Employee development is a strategic approach

that enables organizations to align their workforce with changing industry trends and
requirements. It ensures that employees have the necessary skills and knowledge to excel
in their roles. Improved Job Performance Through ongoing development initiatives such
as training, coaching, and mentoring, employees can enhance their skills and capabilities.
This translates into improved job performance, resulting in higher productivity and
quality output. Increased Employee Engagement and Retention When employees feel that
their organization is invested in their growth and development, they are more likely to
feel engaged, motivated, and loyal. This leads to higher levels of job satisfaction and
reduced turnover rates.

Employee development matters significantly for both employees and organizations. It is a

strategic investment that contributes to the growth, productivity, and long-term success of
a company. Here are several key reasons why employee development is crucial:

2.1 Improved Employee Performance:

When employees receive training and development opportunities, they acquire new skills
and knowledge that enhance their job performance. This leads to higher productivity,
better quality work, and increased efficiency.

2.2 Enhanced Job Satisfaction:

Employees who feel that their organization invests in their growth and learning are
generally more satisfied with their jobs. This satisfaction can lead to higher morale and
reduced turnover rates, saving the organization money on recruitment and onboarding.

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2.3 Increased Employee Engagement:

Engaged employees are more committed to their work and the organization's goals.
Employee development fosters a sense of purpose and motivation, leading to higher
levels of engagement and dedication.

2.4 Talent Retention:

In a competitive job market, offering development opportunities can help retain top
talent. Skilled and experienced employees are less likely to seek employment elsewhere
if they see a clear path for advancement within their current organization.

2.5 Adaptation to Change:

In today's fast-paced business environment, change is constant. Employee development

ensures that your workforce can adapt to new technologies, market shifts, and evolving
business strategies effectively.

2.6 Innovation:

Training and development encourage creativity and innovation. Employees who are
continuously learning are more likely to come up with fresh ideas, problem-solve
creatively, and contribute to the organization's growth and competitiveness.

2.7 Leadership Development:

Employee development programs can identify and nurture future leaders within the
organization. This helps with succession planning, ensuring a pipeline of capable leaders
to guide the company in the future.

2.8 Competitive Advantage:

Organizations that invest in employee development often outperform their competitors.

Skilled and motivated employees can help the company adapt to industry changes,
provide exceptional customer service, and maintain a competitive edge.

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2.9 Compliance and Risk Mitigation:

Training and development programs can ensure that employees are aware of and
compliant with industry regulations and ethical standards, reducing the organization's
exposure to legal and reputational risks.

2.10 Customer Satisfaction:

Well-trained employees provide better customer service, leading to higher levels of

customer satisfaction. Satisfied customers are more likely to be loyal and recommend
your products or services to others.

2.11 Fostering a Learning Culture:

Employee development promotes a culture of continuous learning and improvement

within the organization. This can lead to a more dynamic and adaptable workforce.

2.12 Personal Growth and Fulfillment:

Beyond the professional benefits, employee development can contribute to personal

growth and fulfillment. It empowers employees to reach their full potential, both in their
careers and personal lives.

In summary, employee development matters because it positively impacts individual

employees and the overall organization. It is a strategic investment that not only improves
employee skills and job satisfaction but also contributes to organizational growth,
innovation, and competitiveness in today's dynamic business environment.

3. BENEFITS OF EMPLOYEE DEVELOPING

Employee development offers numerous benefits to both individuals and organizations.

Here are some of these benefits along with examples illustrating their real-world impact:

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3.1 Improved Skills and Knowledge:

Employee development programs enhance the skills and knowledge of employees,

making them more competent in their roles. This improved competence leads to better
job performance. For example: A software development company provides coding
workshops and certification programs for its developers. As a result, their coding skills
improve, leading to faster project completion and higher-quality software products.

3.2 Increased Productivity:

As employees become more skilled and knowledgeable, they can complete tasks more
efficiently, resulting in increased productivity and output. For example: An automotive
assembly plant invests in training programs for its production line workers. This leads to
improved assembly line efficiency, reduced production errors, and a higher output of
vehicles.

3.2 Enhanced Employee Engagement:

When employees feel that their organization is invested in their growth and development,
they are more engaged in their work. This leads to higher job satisfaction and motivation.

For example: A retail chain offers career development opportunities, such as mentorship
programs and advancement pathways, to its store associates. Engaged employees provide
better customer service and contribute to increased sales.

3.3 Better Adaptation to Change:

Employee development ensures that employees are equipped to adapt to new

technologies, processes, and changes in the industry. This agility is crucial in today's
rapidly evolving business environment. For example: A technology company regularly
updates its employees on emerging industry trends and technologies through workshops
and seminars. This helps the employees adapt quickly to changing market demands and
remain competitive.

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3.4 Increased Innovation:

Employees who continuously learn and develop are more likely to come up with creative
solutions to problems and contribute to innovation within the organization. Example: A
pharmaceutical company encourages its research scientists to attend conferences and
collaborate with peers. This exposure to new ideas and research leads to breakthrough
discoveries and the development of innovative drugs.

3.5 Succession Planning:

Employee development programs identify and prepare employees for leadership roles
within the organization, ensuring a smooth transition when key positions become vacant.
For example: A multinational corporation identifies high-potential employees and
provides them with leadership training and development opportunities. When senior
executives retire or move on, the organization has a pool of qualified internal candidates
to fill these roles.

3.6 Higher Employee Retention:

Employees are more likely to stay with an organization that invests in their growth and
offers opportunities for advancement. This reduces turnover and associated recruitment
costs. Example: A tech startup offers tuition reimbursement for employees pursuing
advanced degrees while working. This motivates employees to stay with the company,
reducing turnover and recruitment costs.

3.7 Enhanced Teamwork and Collaboration:

Employees with diverse skill sets and knowledge are better equipped to collaborate
effectively with colleagues, leading to improved teamwork and project outcomes.
Example: A consulting firm conducts team-building and communication workshops for
its project teams. This leads to improved collaboration, better project outcomes, and
satisfied clients.

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3.8 Improved Employee Morale:

Investing in employee development demonstrates that the organization values its

employees, leading to higher morale and a positive work environment. Example: A
healthcare facility invests in employee well-being programs and stress management
workshops. As a result, healthcare professionals experience reduced burnout and higher
job satisfaction.

3.9 Competitive Advantage:

Organizations with a well-developed and skilled workforce are better positioned to

outperform competitors, adapt to market changes, and meet customer needs effectively.
Example: A marketing agency continually trains its digital marketing specialists in the
latest advertising platforms and strategies. This expertise allows the agency to offer
cutting-edge services that outperform competitors in attracting clients.

3.10 Compliance and Risk Mitigation:

Employee development programs ensure that employees are aware of and compliant with
industry regulations and ethical standards, reducing the organization's exposure to legal
and reputational risks. Example: A financial institution ensures that all employees receive
regular compliance training to adhere to financial regulations. This minimizes the risk of
regulatory violations and costly fines.

3.11 Better Customer Satisfaction:

Well-trained employees provide better customer service, leading to higher customer

satisfaction and loyalty. Example: A hospitality chain invests in customer service training
for its staff. The improved customer service leads to higher guest satisfaction, more
positive reviews, and increased repeat bookings.

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3.12 Personal Growth and Fulfillment:

Employee development contributes to personal growth and fulfillment, empowering

employees to reach their full potential, both professionally and personally. Example: An
educational institution encourages its administrative staff to pursue further education and
professional development. This empowers employees to advance in their careers while
contributing to the institution's growth.

3.13 Diverse Perspectives:

Employee development encourages diversity of thought and perspectives within the

organization, as employees from different backgrounds bring unique insights and skills to
the table. For example: A multinational technology company assembles a product
development team with members from different countries and cultural backgrounds. This
diversity leads to the creation of a smartphone that incorporates design elements and
features that appeal to a global customer base.

3.14 Organizational Growth:

By investing in employee development, organizations can foster a culture of continuous

improvement and growth, positioning themselves for long-term success. Example: A
startup company experiences rapid growth and hires a significant number of new
employees to meet increasing demand. This results in a larger workforce and greater
organizational capabilities.

In summary, employee development is a strategic investment that benefits both

employees and organizations by improving skills, increasing productivity, fostering
engagement, and ensuring adaptability in a rapidly changing business landscape. It is a
critical component of building a successful and sustainable organization.

4. Strategies for Effective Employee Development

Effective employee development is crucial for the growth and success of any
organization. It not only helps employees enhance their skills and knowledge but also
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contributes to higher job satisfaction and retention rates. Here are some strategies for
effective employee development:

4.1 Needs Assessment:

Begin by identifying the specific development needs of your employees. This can be
done through surveys, performance appraisals, and discussions with employees and
managers.

4.2 Set Clear Objectives:

Establish clear and measurable objectives for employee development. These objectives
should align with the organization's goals and the individual career aspirations of
employees.

4.3 Tailored Development Plans:

Customize development plans for each employee based on their needs and objectives.
Recognize that one size does not fit all, and different employees may require different
approaches.

4.4 Provide Training and Education:

Offer a range of training and educational opportunities, including workshops, seminars,

courses, and online learning platforms. Ensure that training is relevant to employees' roles
and career paths.

4.5 Mentoring and Coaching:

Implement mentoring and coaching programs that pair experienced employees with those
seeking guidance. Mentors can provide valuable insights, advice, and support for career
growth.

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4.6 Job Rotation and Stretch Assignments:

Encourage employees to take on new roles or responsibilities within the organization. Job
rotations and stretch assignments can expand their skills and expose them to different
aspects of the business.

4.7 Feedback and Performance Reviews:

Conduct regular performance reviews that include feedback on strengths and areas for
improvement. Use these reviews to discuss development goals and track progress.

4.8 Continuous Learning Culture:

Foster a culture of continuous learning within the organization. Encourage employees to

take ownership of their development and pursue opportunities for growth.

4.9 Leadership Development:

Identify and nurture potential leaders within the organization. Offer leadership
development programs to prepare employees for future leadership roles.

4.10 Recognition and Rewards:

Recognize and reward employees who actively engage in development efforts and
achieve their goals. This can include promotions, salary increases, or other forms of
recognition.

4.11 Support for Further Education:

Provide support, such as tuition reimbursement or study leave, for employees pursuing
further education or advanced degrees that are relevant to their roles.

4.12 Feedback Mechanisms:

Create mechanisms for employees to provide feedback on the effectiveness of

development programs. Use this feedback to make improvements and adjustments.

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4.13 Cross-Functional Collaboration:

Encourage collaboration across departments and teams to facilitate knowledge sharing

and cross-functional skill development.

4.14 Diversity and Inclusion Initiatives:

Recognize the importance of diversity in development efforts. Ensure that opportunities

are accessible to employees of all backgrounds and promote diversity of thought.

4.15 Alignment with Business Goals:

Ensure that employee development efforts are closely aligned with the organization's
strategic objectives. Development should contribute to the overall success and growth of
the company.

4.16 Measure and Evaluate:

Establish key performance indicators (KPIs) and evaluation methods to assess the impact
of development initiatives on employee performance and organizational outcomes.

4.17 Communication and Transparency:

Communicate the value of employee development to all stakeholders, including

employees, managers, and leadership. Ensure transparency in the process and available
opportunities.

4.18 Budget Allocation:

Allocate sufficient resources in the budget to support employee development initiatives,

including training, mentorship programs, and technology platforms.

4.19 Stay Current:

Continuously update development programs to keep pace with industry trends,

technological advancements, and changing business needs.

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4.20 Career Pathing:

Provide employees with clear career paths and growth opportunities within the
organization, helping them understand how their development efforts can lead to
advancement.

By implementing these strategies for effective employee development, organizations can

create a culture of growth, skill enhancement, and continuous improvement, leading to a
more motivated and capable workforce and increased overall success.

5 INCREASED JOB SATISFACTION AND MORALE

Increased job satisfaction and morale are crucial aspects of a healthy and productive work
environment. When employees are satisfied with their jobs and have high morale, they
are more likely to be engaged, motivated, and committed to their work. This can lead to
several positive outcomes for both employees and employers:

5.1. Higher Productivity:

Satisfied and motivated employees tend to be more productive. They are willing to put in
extra effort to meet their goals and contribute to the success of the organization.

5.2. Lower Turnover:

When employees are happy with their jobs, they are less likely to leave. High turnover
can be costly and disruptive for organizations, so retaining talent is important.

5.3. Improved Job Performance:

Satisfied employees are more likely to perform well in their roles. They are more
focused, attentive, and willing to take on new challenges.

5.4. Enhanced Innovation:

Job satisfaction and morale can foster a culture of innovation and creativity. Employees
who feel valued and supported are more likely to generate new ideas and solutions.

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5.5. Better Customer Service:

Employees with high morale are more likely to provide excellent customer service. They
are more patient, empathetic, and motivated to meet customer needs.

5.6. Positive Workplace Culture:

High morale contributes to a positive workplace culture where employees support and
collaborate with each other. This, in turn, can attract top talent to the organization.

5.7 Health and Well-being:

Job satisfaction can have a positive impact on the physical and mental health of
employees. When people enjoy their work, they are less likely to experience stress-
related health issues.

To increase job satisfaction and morale within an organization, employers can consider
the following strategies:

 Recognition and Rewards: Recognize and reward employees for their hard work
and achievements. This can include monetary incentives, promotions, or simple
expressions of appreciation.
 Clear Communication: Maintain open and transparent communication with
employees. Keep them informed about company goals, changes, and expectations.
 Professional Development: Provide opportunities for employees to develop their
skills and advance in their careers. Investing in training and development shows
that the organization values its employees.
 Work-Life Balance: Encourage work-life balance by offering flexible work
arrangements, paid time off, and support for family needs.
 Employee Involvement: Involve employees in decision-making processes and seek
their input on matters that affect their work. This can make them feel more
connected to the organization.

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  Supportive Management: Ensure that managers and supervisors are trained in
effective leadership and people management skills. A positive relationship with a
manager can significantly impact an employee's job satisfaction.
 Wellness Programs: Offer wellness programs that promote physical and mental
health, such as gym memberships, counseling services, or stress management
workshops.
 Fair Compensation: Ensure that employees are paid fairly and that compensation
packages are competitive within the industry.
 Recognition of Achievements: Celebrate individual and team achievements
through ceremonies, awards, or public acknowledgment.
 Opportunities for Growth: Provide opportunities for career advancement and
growth within the organization.

By implementing these strategies and fostering a supportive and inclusive workplace

culture, organizations can boost job satisfaction and morale, leading to improved
employee engagement and overall success.

6. CONCLUSION

In conclusion, employee development is not just a cost but an investment in an

organization's success. It contributes to higher performance, employee engagement, and
the ability to adapt and innovate in a rapidly changing business environment, ultimately
leading to long-term growth and competitiveness.

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7. REFERENCES

Becker, B. E., Huselid, M. A., & Ulrich, D. (2001). The HR Scorecard: Linking People, Strategy,
and Performance. Harvard Business Review Press.

Cascio, W. F., & Boudreau, J. W. (2016). Investing in People: Financial Impact of Human
Resource Initiatives. Pearson.

Goldstein, I. L., & Ford, J. K. (2002). Training in Organizations: Needs Assessment,

Development, and Evaluation (4th ed.). Wadsworth Publishing.

Kirkpatrick, D. L., & Kirkpatrick, J. D. (2016). Kirkpatrick's Four Levels of Training Evaluation.
Association for Talent Development (ATD).

Noe, R. A. (2017). Employee Training and Development. McGraw-Hill Education.

Pfeffer, J. (1998). The Human Equation: Building Profits by Putting People First. Harvard
Business Review Press.

Phillips, J. J., & Phillips, P. P. (2016). The Value of Learning: How Organizations Capture Value
and ROI and Translate It into Support, Improvement, and Funds. Routledge.

Saks, A. M., & Haccoun, R. R. (2016). Managing Performance through Training and
Development. Nelson Education.

Smith, J. (2022, June 15). The Benefits of Developing Employees in an Organization. HR

Insights Magazine. https://www.hrinsights.com/benefits-of-employee-development

Stone, R. J. (2002). Human Resource Management. John Wiley & Sons.

Tannenbaum, S. I., & Yukl, G. (1992). Training and Development in Work Organizations.
Annual Review of Psychology, 43(1), 399-441.

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