2.1 Introduction:

Organisations survive, grow and earn profits by meeting the needs and requirement of customers. To survive in the ever changing environment, it is critical for any organisation to satisfy the needs of the customers (Mullins, 2007). Consumers’ decision to buy this product also depends upon the service or treatment provided by the company. That’s why companies put a great emphasis on its employees training of skills as well as continuous development over the years; especially for the ones which provide service directly or interact with customers often. Organisations have started emphasising on soft skills importance for services and they are laying a great importance for employees to acquire soft skills. Training of employees in soft skills is vital for any organisation as it aid in employee development (Guirdham, 1999).

Customer oriented market and changing environment has influence on the organization structure that leads to increased reliance on skills development. Organisation structures are necessary to support the effort of training managers and trainee employees (Armstrong, 2008). It also makes possible the effective performance of key training activities. Organisational structures are influenced by customer oriented market and constantly changing environment that is leading to more dependence on soft skills training for employees. Culture of an organization also plays an important part in assessing the needs and requirements for training and development. It also puts a positive pressure on organizational behavior and influences it. It also helps in producing high level of business performance. Change and training is worthless if employees are not involved properly (Armstrong, 2008). Employees are regarded the most valued assets especially which are skilled in soft skills, as the business nature organization itself changes. The role of managers and leaders are very important in development of employees. Leadership is necessary for creating change and can produce orderly change. Leaders are expected to focus on taking the organization forward. To get an accurate picture of the service quality delivered; an organisation measure customer satisfaction and experience (Bratton and Gold, 2001). Training is also evaluated to measure the employee work performance and effectiveness (Beardwell et al. 2007).

2.2. Training and Development

Armsrtong (2008) defines employee development as a process to prepare organization employees for future responsibilities related to job. This may include training (formal or informal, mentoring, education, coaching etc. Training and development of employees is a HRM activity. HRM is concerned with personnel management and staff development in a company and is normally carried out by HR professionals e.g. HR managers (Armstrong, 2006). The nature of work HR carries out differs from one business to another and is effected by size and structure of the company. Talented pools of workers are always required by an organisation to compete successfully in today’s highly competitive market (Bratton and Gold, 2001). Company can achieve and maintain this competitive advantage by regularly upgrading the workforce skills. Training and development is a never ending challenge that a company must address (Wilson, 2006). The development of employee skills is one of the most imperative tasks in which an organisation can engage (Molander and Winterton, 2006). Effective training is paramount for survival and growth of a business. Training is not just about developing people but serving them to become more positive and capable in their jobs as well confident in their lives. The field of training is a fast growing sector of human life and has come of age as a profession. There are many motives for training and developing employees. It can be started for a variety of reasons for employees e.g. to facilitate an employee to be qualified for a planned change. It can be carried out as part of an employee’s professional development program or performance improvement (Rae, 1999). The training need has always been present in every walk of life and today the need is so much greater. There could be any reason but important are probably: the pace at which change is happening in every field of business life, and the employers’ attitude and the attitude of the individuals (Pont, 2003). Training is not only essential to create skilled force but also needed to maintain a high level of skills required by the constantly changing work environment and to equip employees to meet future demands (Stewart, 2996) (Pont, 2003). HR professionals do recognise training and development of an employee is a process that is ongoing but it speed up in case of organisational, cultural or environmental change. This training process involves continuous adjustment to adapt which is achieved from improved skills and increased knowledge (Beardwell et al 2007). The new working system demands completely new approach of thinking and extensive training in new skills (Beardwell and Claydon, 2007). The importance of training has long been recognized. The need for training is more prominent given today’s business climate which affects the economy and society at large. The most simplistic definition of training is that it is an activity that changes people’s behaviour.

Training is defined by Wilson (2006) as a planned process to modify employee knowledge, skill, attitude and behaviour through learning to gain performance. Employee is trained to make sure that organization’s current or future needs are met. Training can equip employees to do their jobs, perform their tasks and handle complex products and services. In Bramley’s (2003) words, training involves learning and educating employee to do something so that the things are done differently. He and (Wilson, 1999) further explains that training process is planned to facilitate education to help employees develop into more effective and efficient in performing their duties and completing their work. According to the CIPD, training is expected to equip workers to help them become strategically unique, in addition to the provision of skills, attitudes and knowledge required to attain operational efficiency. The foundation for training remains the traditional training process system. This involves: 1. identifying the needs for training and development of the company; 2. Planning training or devising a learning plan; 3. Carrying out or delivering training and 4. Assessing and evaluating outcomes/results. A training-need-analysis is the first step in identifying the types of programs that will further organisation’s goals, which helps to decide whether training is appropriate at all. The organisations have to assess why they need training. Is the current organisational deficiency that the training seeks to address really due to lack of skills and knowledge or some deeper problems? Frequently, organisations implement training program because a HR professional identifies an individual or business need (Smith and Mazin, 2004). Then plans are made on how to deliver the program and by which method.

Although the terms training and development are often linked, these address slightly different needs. Training focuses on learning the necessary skills and acquiring the knowledge required to perform the job. Training deals with design and delivery of knowledge to improve organization performance. Development focuses on the preparation needed for future jobs; it should be considered investment in the work force since its benefits are long term (Buhler, 2002). Training inclined towards focusing on short term results. Development may inadequately focus on working environment. It is very important for the business to review its training to a broader scenario (Bryans and Smith, 2000). According to Armstrong (2006), people are learning and will continue to do so throughout their career, whether taught formally or as an experience. Mullins (2007) observed that people learn within the organisation and in everyday life situations. Competition, technological advances and organizational development, all necessitate the creation of knowledge that leads to constant advancement. That directs oganizations to take more interest in employee development within evolving organization. Training is the main area of the HRM function of particular importance and relevant to the management effectiveness. There are not many scholars who argue in opposition to the importance of training as a foremost influence on the organization success. Leading writers have recognised the importance of training as fundamental for management (Bratton and Gold, 2003). Many believed that training employee development is a key factor of HRM within organization. Training as described by Keep (1989 cited by Wilkinson, 2006), is a litmus test against which management’s characteristics practices can be measured. Other advantages of staff’s training and development includes: increased employee morale, motivation and job satisfaction, increased efficiency and effectiveness, increased ability to adopt latest methods and technologies, enhanced company image, reduced employee turnover, risk management. The precise staff training at the right timing presents big payoffs for the employer in increased knowledge, productivity, contribution and loyalty (Web 3). Training let the organization to develop and promote its own business culture. It also permits organizations to become accustomed to changes in the working environment and can be used as a change agent (Wilkinson, 2006). Training can improve effectiveness of the organisation in fiercely competitive markets. Training assists in optimizing the development of human resource for employee to achieve the individual as well as organisational objectives (Benson, 2006). It increases the job skills and knowledge of employees and expands the horizons of their intellect and their personality. Training and development also aids in signifying the team spirit sense, team work and inter team relationship. It also helps the company to be effective in decision making and solving problem. It also assists in developing leadership skills, loyalty among employees, staff motivation, enhanced attitudes and other features that successful employees normally display (Armstrong, 2008) (Bratton and Gold, 2003) (Jenkins,2002) (Pont, 2003) (Price, 2007).

Of course, the basic and main goal of a business is to enhance its value and to increase its stakeholder’s wealth. It requires effective and efficient use of limited resources available to the organization to achieve theses aims. Resource aavailability (human, physical and financial) are considered important inputs (Bacon & Haque, 2008). HR scholars agree that an organisation is only as good as persons working in it but opinions vary on how it translates into practice. Many organisations not only consider training as n chance for employees to learn something but also as an investment that would produce results for business. It also takes money and time to train staff (Bacon & Haque, 2008). With a supportive environment and a little encouragement and reinforcement, a business can accomplish the required result on a substantial investment in people. An organized approach is needed in evaluation of needs of training; otherwise organization may not be able to utilize valuable resources efficiently (Armstrong, 2006). Training matters for a company because of the established links between productivity and skills. Organisations allocate resources for training because of fear of skills shortage. Some scholars like Kallenberg & Moody (1994) recognize that investment in employee development result in higher returns in future. Employees are the essential and crucial resource. It’s important for an organisation to optimize the employees’ contribution to the organisation’s goals and objectives in order to maintain effective performance. Adequate supply of technically and socially competent and proficient staff is only ensured by training and development. Training helps the staff to become capable for career advancement into specialist departments and management positions. Staff training can be on-the-job that is conducted at the trainee’s workplace, and off-the-job which is carried out away from employee’s work place (Mullins, 2007). Some employees are naturally gifted in talents while others work hard to gain but all can still benefit from learning new techniques. People usually receive a well to do on the job training in one form or another. Some people are good at finding their own paths and procuring the necessary resources and information, many persons learn best by following, observing and asking questions (Smith and Mazin, 2004).

Training is not always the answer to problems related to performance. Some training analysts (Rosner, 1999 cited by Smith and Mazin, 2004) believed that training could be a good investment or could be a waste of resources. It is in fact a waste of resources when the desired behaviour does not occur. That’s why training and development doesn’t succeed all the time to achieve desired results and in obtaining aims and objectives of the organisation. There can be many causes for the failure but most common are (Web 6): Training is often put into practice for the wrong reasons and seldom aligns to a business measure. If training program does not support the business goals then no improvement can be recorded. Training is thought to be a solution for a range of performance problems when training may not be concern at all. It also fails because it does not succeed to give direction and focus. Sometimes the solution proves too expensive for the desired outcomes. Individual’s behaviour towards training also plays an important part; e.g. when training is believed just as an event than as enhancement of skills and abilities of the employees, it fails to generate business results. Other important reason for failure is lack of management support (Mullins, 2007). Employees will hardly ever implement new skills and knowledge without it in the workplace. Failure to include and credit other influences and processes apart from training that may have influenced the business outcomes may also be a good reason of failure. Some businesses invest little in training because they don’t have enough funds. Other reason is the fear that individuals will leave and move to other companies at some later stage. Few organisations consider recruitment process sufficient and rely on the natural skills of employees rather than training (Harrison, 2005).

It is HR manager’s role and responsibility to develop and implement training strategies and policies. He/she is also involved in people management activities like developing organization, recruitment and selection, talent management, learning and development, human resource planning, knowledge management, reward management, etc (Hyde et al. 2009). Depending on the business nature and size of the company, the HR managers not just have responsibility of training and developing employees but for performance management as well.Training processes take place in the context of internal and the external environment of the organization. Human Resource Managers need to realize the training and development’s nature and process to be able to facilitate learning and development within the organisation (Watson, 2006). While providing training, the managers need to recognize the importance and effects organization structure and design because these describe tasks and responsibilities, roles and relationships, work and channels of communication (Mullins, 2007). Structure is clearly important for any organization, whatever its size. The aspects that determine how the company functions in relation to its eternal and external environment are its structure and the processes that operate within it. Structures are necessary to support the effort of training managers and trainee employees. It also makes possible the effective performance of key training activities (Hyde et al. 2009).

Human Resource Development (HRD) is a name which signifies the newest evolutionary phase in the long custom of training, educating and developing employees. It focuses on the principle of contributing to the success of individual, organisational and societal objectives. According to McLagan (1989 cited in Wilson, 2005) it is the incorporated use of training, career development and development of a company to improve organisational and individual value. HRD gives the business benefits assisting the ability to increase revenue. Companies need to develop a learning culture that responds quickly to the ever changing environment. HRD policies can help the organisation to obtain this objective (Nixon, 2004).

2.3. Soft Skills

There are two versions of HRM as explained by Storey (1992). He made the distinction between the soft and hard HRM approaches and describes that although both approaches to HRM emphasise on employees and consider them important for achieving competitive edge that has to be attained, developed and organized in ways that benefits the business. Soft version further focuses on communication, leadership and motivation and lays emphasis on people’s skills, commitment, adaptability and performance (Armstrong, 2006). Organisations that have a mixture of both approaches tend to endure and grow in the competitive business environment.

Many scholars define soft skills as the skill to converse in both written and verbal forms and the ability to interact with colleagues and fellows in a positive behaviour (Redman and Wilkinson, 2006). The importance of acquiring or improving soft skills cannot be understated. No matter how good or strong and professional employee is, he can’t succeed if his interpersonal skills are weak. Soft skills which are also known as people skills are usually difficult to observe. These can also be hard to quantify and measure (Web 7), unlike hard skills which are easily observed and measured. People skills are not just needed for work but also for everyday life as much. Lee (1999) defines soft skills as “intra and interpersonal job skills that facilitate the application of technical skills and knowledge”. Soft skills includes a range of abilities such as flexibility, analytical thinking, ability to communicate effectively, listening skills, leadership skills, team-building skills, self-awareness, creativity, problem-solving skills, change- readiness and diplomacy skills. Soft skills can be easily differentiated from hard skills. Soft skills are the non technical skills which are often ignored while managing businesses. On the other hand, hard skills are the technical capabilities required for job performance. These can easily be acquired through training. Hard skills are the technical knowledge required to complete the tasks while soft skill is the interpersonal aspect of work place life. As described by Muir (2004) soft skills are employee’s attitudes and behaviours while interacting at the workplace which effect the outcomes of such interactions. Many scholars often refer people skills as soft skills. Hard skills, on the other hand are administrative procedures carried out by employees which relates to company’s core business. Some examples are: protocols of a computer, operations of a machine, financial procedures, safety standards and sales administration (Web 7). Hard skills are the technical skills required within the domain limits, normally consists of processes, tools and techniques. Although these are crucially important, these skills have to be considered along with the broader soft skills (Muir, 2004).

Soft skills have not been given importance in the past and have been of less importance in many technical areas but now in fast paced competitive business environment, it is a necessary feature in organisational development. It was believed that soft skills were not needed by employees as long as they can perform their job accurately, but now even in hard and task oriented roles soft skills are required (Belzer, 2004). Soft skills are more important than ever before especially in the working environment which faces changes occasionally. Businesses demand broader soft skills along with hard skills from its employees. Businesses require their employees to have the skills unique to their role at every level and field. It is deemed by Muir (2004) that all people should be skilled while participating in team projects or when managing conflicts. They must be capable in creating relationships to improve individual and business performance. Soft skill is an essential and effective tool for management and is necessary workplace requirements.

Employers sought core skills which are soft and transferable like effective communication ability and team working. They also look for other soft skills such as decision making and conceptualisation which are also vital for the business success. Researches on the soft skill importance signify the most important soft skill for an employee to possess is interpersonal skill, and then come written or verbal communication skills (Schuler, 2007). Demand for the acquisition of soft skills and reliance on these increases with the constantly changing work environment due to technology or any other reason. Although, soft skills are not a hard skills replacement, these are, on occasions, balance and work together with technical skills to unlock the employee potential for high effective performance (Banfield and Kay, 2008).

For years the management focused on hard or technical skills which were necessary to perform effectively. Hard skills are more jobs specific and more closely related towards the actual job being done. Today, organisations desire employees skilled in critical soft expertise (Mullins, 2007). These soft skills tend to be more generic in nature and key to effective performance across all job categories. According to Lee (1996) the main soft skills managers prioritise for developing learning materials are: people management/ supervision, teamwork, leadership, people related/ experience/ frontline, communications, negotiation, customer service, coaching, customer problem solving and project management/ organisation. Other soft skills required by management include decision making, presentation skills, assertiveness, time management, change management, stress management, decision making, resolving conflicts, diversify, giving feedback, appraisal, employee engagement, cooperating as a team member, arranging meetings and taking minutes. Good soft skills also include managers’ ability to balance the staff individual needs with the commercial needs of their companies..

Soft skills are important for any organisations because these help individuals and businesses to achieve goals. These also help employees in distributing services or information to customers and colleagues, assist in effectively working as a team member, and inspire management and supervisors’ confidence (Conrad, 1999). Many businesses put high importance on soft skills along with the core skills that are a prerequisite for most sectors (Web 4). Soft skills importance is obvious for many professions, customer service industry in specific (Web 5). The increase in service based industry and the shift from production/manufacturing work to knowledge/service industry has changed the nature of job performance in the business sector. As businesses become more focused on service oriented work, organisation’s personnel should be able to demonstrate high interpersonal nature of performance at work. Normally jobs in the service sector usually result in interactions with colleagues, consumers and/or clients (Zedeck & Goldstein, 2000). Communication skills are the most important soft skills desired by the organisations especially by service sector where business dealings are mostly done while interacting with customers face to face or by any other means. Riggio (1986 cited by Murphy and Riggio, 2003) associate these skills with listening, presenting, verbalizing, and nonverbal communication. Hall (1979 cited by Murphy and Riggio, 2003) divided interpersonal skills into two categories of sending and receiving. Many researchers argued that the basic information sending and receiving skills represent key social skills. Soft skills such as interpersonal skills and communication skills are desired by companies, and these will remain significant for the employees’ development.

People’s ability to manage the soft side of business is now considered vital for making organization more valued (Muir, 2004). Organisations are not just assessing their employees, current or prospective on business skills but they are now considering them for their soft skills competencies especially how well they communicate to colleagues and customers. In most of the progressive organizations, management is looking for people’s ability to communicate effectively and clearly, and also in their skills to listen and respond sympathetically. Companies also desire the employees to have good written skills so that their correspondence doesn’t undo the good work they performed in face-to-face communication.

2.4. Soft Skills Training

Skills training and development of employees is the key feature of business and economic environment. Training raises the skill levels and productivity of employees and presents the expectation of better competitiveness within business environment. There are two fundamental categories of skills training: hard and soft skills (Armstrong, 2008). The need for hard skills training can easily be identified while soft skills are very hard to define and measure. They relate to individual development and are very important for successful performance of job. Soft skill training enhances the softer side of HRM expertise, knowledge, opportunities and skills of the employees. Soft skills training is concerned with getting a enhanced understanding of the ways persons think and behave. Soft skills training is vitally important especially for service industry as it offers consumers high service level and makes them feel valued by the company (Kotler 2003). To gain a competitive edge, businesses train employees in soft skills. Soft skills also assists the company to create positive relationships that work to involve people. Some types of training have both hard and soft skills components. Sales training for example, may encompass hard skills such as product knowledge and price negotiation, and soft skills such as empathy and listening (Smith and Mazin, 2004). In contrast to soft skills, hard skills are easy to train to employees because many a times these skills are new to the employee and there is no unlearning involved. Soft skills are not easily observed, measured or even quantified. Soft skills are not easy to be trained. The best way to develop skills is to practice doing the thing what an employee is trying to do, under the expert guidance of someone who knows how (Redman and Wilkinson, 2006).

It is believed that soft skills if properly trained can really make a difference between finalising the contract and losing it. It can either build an organized team or create inefficient and malfunctioned one. It can also bring a difference in getting a promotion or missing out. It gives employees a competitive edge that helps to create positive relationships among employees, with management and with customers. This results in companies getting more from people (internally and externally). Training of soft skills covers a wide range of skills, including assertiveness, persuading, negotiating skills, influencing skills, public speaking, presentation skills, team management and networking (Muir, 2004) (Beardwell et al, 2007) (Bohalander and Snell, 2003). It can help boost confidence and morale of an employee and helps in doing the job efficiently and effectively. Soft skills’ training is about getting a better understanding of the organisation ways and how people think and behave. It is about presenting the company, its ideas in a manner that impact on the audience in a best possible way. Soft skills training is especially useful for management who manage a team of employees, as well as for people who interact with others as per requirement of their job e.g. front line staff, any business with customers and clients, anyone who work with suppliers and the people who work as part of a team. The interpersonal nature of the work culture has been comprehensively reviewed by many scholars. Communication skill is the most important of interpersonal or soft skills and most employees are not skilled in this according to the standards. Companies focus on training these skills by programs that usually contains a mix of programmes e.g. listening, writing, face-to-face communications and presentation skills. Awareness like self or social awareness, management of relationships, diversity and conflict management are some other essential complements to interpersonal skills (Buhler, 2002) (Drucker, 2007).

Competitions in the business world and developments in various fields like technology require the knowledge creation which in directs to constant development and innovation which in turn leads the businesses to focus more on training and development of its employees within expanding organisation. In today’s working environment, the organizations has to specifically take interest in softer side of HR training of staff as its demand is increasing with time. Therefore, not just hard skills but soft skills also must be part of a training programme (Muir, 2004). The need and importance for soft skills and its development is important when there is intense competition for many available positions. Amongst many businesses, there is growing recognition for the importance of people skills, understanding that these are essential for a highly focussed successful business. Job skills are intensifying with the time and technical skills are no longer considered enough. Organisations need employees to have more relevant soft skills at all stages of organisational hierarchy Stoneall 1997). The organizations face challenge on training relevancy in 21st century’s changing business environment. Organisations are changing their ways in terms of recruiting, training, measurement and definition of skills and adapting new ways and models that rely on current and future demands of the markets. Learning and training of employees can focus on different employment components as proposed by Lee (1996). Organisations can adapt different techniques of training for their businesses and according to their requirement. Some consist on purely of knowledge acquisition, many focus on staff skills development, some even focus on sentimental aspects of the employees and their relationships. Few activities seek to incorporate all the above discussed methods. Whatever method or technique an organisation chooses for employee skills training and development, soft skills remains the must have requirement. Changing nature of technical jobs and services and increased and services made soft skills very crucial for the survival of any business. Armstrong (2008) places a great importance on the design of soft skills training policy because of its significance of effects on the business. It is an important matter that requires close attention to the company’s mission, strategic vision and ethical stance and strategic vision. Companies’ policies and procedures must be aligned to the organization’s objectives.

The organisation cannot ignore the effect of change on soft skills training. It is obvious that change in organizational structure and its culture have a direct impact on soft skills training and its requirements. Organisations need to train their employees for the accommodation of their new tasks and responsibilities. Changes in structure require the organization to promote improved communication and understanding of the accountability. According to Hussay, (2000), training is a technique for the business in eminent change. Training according to the change requirements provides organizations with adaptability, durability and flexibility required for growth and survival (Redman and Wilkinson, 2006) (Stewart 19