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Correlation of employee education and organizational performance

Employee education is one of the most important tasks of human resource management. Like any other investment, investing in education requires some justification, that is, results through outcomes at the level of the entire organization. To date, most employee education research has been based on employee response criteria rather than business results.


Correlation between education and organizational results

Several models explain the relationship between education and organizational outcomes. The first model looks at resources as the basis of the organization, and according to it, resources can be a source of competitiveness of the organization in the market. Furthermore, the behavioral perspective model looks at employee behavior and attitudes within roles that serve as mediators between organizational strategy and work behavior, while neglecting the importance of employees ’knowledge, skills, and abilities. The model called input-pass-output views the organization just as the model’s name suggests, as a system that shapes what enters from the middle into what is seen as a result at the exit to the middle. The last institutional perspective is based on the social construction of reality, which represents the adopted views on social reality that determine how certain things are done.


Theoretical models of education in the organization

Employee education certainly leads to positive effects on the organization's business, but there is little research that has tried to determine a model that will provide a theoretical basis for this fact. In addition, the biggest challenge is to find an organizational model that could explain the correlation between the results obtained by measuring at the individual level and those obtained by measuring at the organizational level. Recently, however, research and models have emerged that evaluate impacts at the individual, organizational, and even financial levels.


Model of efficiency of education through several levels

The model of efficiency of education through several levels is based on the transfer of education through different organizational levels, which is why this model is also called vertical transfer. There are two types of vertical transfer, and these are compositional and compilation. In compositional transfer, the effects of employees include the same content of work, and it observes the average value of individual contributions, considering the average values ​​of knowledge, skills, abilities, and more. In compilation transfer, employee effects are conjunctive because different people contribute differently to overall performance. In doing so, different knowledge, skills, abilities, etc. are observed, organized into the same whole, so this transfer is characteristic of teamwork.


Model of direct and indirect influence

All the above models confirm that education affects the organization through the individual level and confirm the correlation between employee education and organizational performance. The indirect model was obtained by mediating the direct effects of education on employees. On the contrary, the direct effect of education is felt in the influence at the level of employees, on their attitudes, motivation, job satisfaction, behavior, and intellectual capital.


Sources:

  1. Babić, L. (2010). TEORIJSKI MODELI ODNOSA IZMEĐU EDUKACIJE I ISHODA NA ORGANIZACIONOM NIVOU. Singidunum Scientific Review/Singidunum Revija, 7(2), 131-137.

  2. Ostroff, C. and Bowen, D. E. (2000). MOVING HR TO A HIGHER LEVEL: HR PRACTICES AND ORGANIZATIONAL EFFECTIVENESS, 157-210.

  3. Schuler, R. S. et al. (1987). LINKING COMPETITIVE STRATEGIES WITH HUMAN RESOURCE MANAGEMENT PRACTICES. Academy of Management Perspectives, 1(3), 207-219.

  4. Wright, P. M. and Snell, S. A. (1991). TOWARD AN INTEGRATIVE VIEW OF STRATEGIC HUMAN RESOURCE MANAGEMENT. HUMAN RESOURCE MANAGEMENT REVIEW, 1(3), 203-225.

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