CHAPTER ONE
INTRODUCTION
1.1. BACKGROUND OF THE STUDY
Changes in technology, especially information technology, generate knowledge spreading up at tremendous speed, as well as its quick obsolence. In the period between 1900 and 1950, the amount of human knowledge doubled, and since then it has doubled ever 5 to 8 years. Knowledge is becoming obsolete so quickly that all of us need to double our knowledge every 2 to 3 years in order to keep with the changes.
On the other hand, the increasing complexity, turbulence and uncertainty of the environment require different and greater knowledge. Modern business requires more than more knowledge and skills that are still inadequately present in the formal school education, i.e. the gap between business requirements and the knowledge acquired at school is growing. The period of mass producing is over and the customers are very selective. Increased consumer demands require new solutions and knowledge. Due to increasing competition, the organization is required to constantly revise its product and service mix, managerial methods, and to increase productivity. Modern conditions of dynamic competition, sophisticated information technology, knowledge economy, market globalization, have changed the relation to importance of human resources in organization. These conditions actualize the human capital as the strategic resource of every organization. Difference between the organizations exists exactly due to the difference between human capital, i.e. the organizations human resources, ways of their management and development.
This was acknowledged by Nwankwo (1991: 212) when he said that “it is not enough to get good human resources in the door, they have to be developed to enable them remain motivated and productive and to maintain a reasonable level of job satisfaction. Therefore, the next stage in human resources management, after the selection, and induction in the job, is staff development to ensure that the individuals are properly equipped with skills and knowledge to carry out the job. It improves activities ranging from simple job training for lower level employees to long-term development of seminar executives”.
In a more and more global, complex and turbulent environment, knowledge is the only reliable source of competitive advantage. Traditional factors of manufacturing as the soil, labor and capital did not disappear, but their significance is not primary anymore. Knowledge is viewed as the key of realization of a competitive advantage. And therefore the question of where the corporative knowledge is located, how to release it and develop to achieve organizational goals has become very important. Since the organizational knowledge is largely located inside the human mind, i.e. the head of employees, as carriers of knowledge and activities, human resources are becoming the key factor of business success. Organizational development is always conditioned by human knowledge and skills. That is why; contemporary organizations pay more and more attention to the development of their employees.
Thus according to Haycox 2011 in his submission to metrofax.com proposed that proper training is one way to develop a company culture that embraces excellent customer services. Also Ituwe (1982: 183) maintained that “people would no longer be satisfied to chant bank slogans that do not measure with services”.
Thus, employee education and training are becoming an optimal answer to complex business challenges, and the management of human resources is taking central role in modern management. Through the process of employee training and development, the management of human resources provides constant knowledge innovation, creates conditions for mutual knowledge and experience exchange and proactive behaviour, in this way contributing to competitive advantage and satisfaction of all participants in business procedures.