All about business

The unwritten assumptions that managers and staff have for their working relationships are referred to as the psychological contract. Traditionally, in return for workers' contributions and capabilities, the boss will have a stable job with increasing wages, incentives, and career advancement. Employees established allegiance to their employers and organizations as their goals were met, and they stuck with the employer. However, over the past few decades, employers have seen major layoffs, mergers, and acquisitions, and work outsourcing. Thus, they have lost their perception of job security and of increasing benefits from a long tenure with an employer. Employees see a less personal gain in being loyal to their employers, and they are more willing to leave. In addition, loyalty is eroded when employees see their employers behaving in unethical and illegal manners. The traditional psychological contract has been broken.

Corporate Training and its Usefulness

Corporate training refers to the training programs initiated by the employer to upgrade the employees’ level of skills and is always motivated by competency skills and productivity needs. Corporate training is useful to the business organization due to several reasons. To begin with, corporate training improves the employees’ decision making thereby increasing efficiency in management. Corporate training also improves employees’ motivation as it fulfills the employees’ personal career growth needs. Improved employee morale consequently results in better employee performance and overall productivity of the organization. Employee training has an effect of increasing the learning within the business. When employees who have undergone training share their newly-acquired skills in their workgroups, knowledge spreads in the company. This process can lead to improved workers performances.