Organizations in today’s highly competitive business world have begun to seek more effective ways to enhance the value of their human capital in order to maximize organizational performance and profitability. One of the most prevalent methods that firms have been pursuing to accomplish this is through focusing on employee training through the establishment of a corporate university. Many 21st century organizations have adopted the Corporate University Model as the instrument for establishing their corporate university. To fully explore the concept of enhancing human capital through employee training, the following sections will provide a brief review of the Corporate University Model, evaluation of the use of training as an employee development tool, and evaluation of the internal university structure as it is related to human resource development.
Review of Corporate University Model
The corporate university model is a relatively new model that provides a wider range of educational and training opportunities for employees than traditional corporate training models. Further, it differs from the other models in that the client group includes not only employees and managers but also stakeholders outside the company, including community colleges, universities, high schools, and grade schools (Noe, 2010, p. 82). What is particularly intriguing about the corporate university model is that it provides focus on stakeholders within its scope. Research has found that such a corporate university is characterized by large focus, extended scope, and rich interconnection, which addresses the needs and expectations of the resource base comprehensively (Margherita & Secundo, 2011). As such, the corporate university model represents an expanded version of more traditional models. This indicates that the corporate university model is more comprehensive, and may better enable a firm to achieve its set goals and strategies by enhancing the value of their human capital through extensive and thorough employee education and training.
Evaluating the Use of Training as Employee Development Tool
Throughout the course of the individual employee’s career, development must occur in order to prepare that employee for positions of increasing responsibility, increased performance, and improved efficiency. Training is one of the most fundamental tools that organizations employ to facilitate employee development. The corporate university model can help to enhance the positive impact of training as an employee development tool by allowing a customized training and development plan for each employee based on their individual needs. This is an extremely effective approach to developing employee knowledge, skills, and abilities in a manner that supports their position responsibilities, and facilitates upward mobility through preparation and development towards higher level positions. This evaluation is supported by empirical research that has been conducted in the area of employee development. Specifically, one study regarding employee development in a company in South Korea resulted in findings that suggested that self-efficacy, intrinsic value, and perceived usefulness and ease of the provided learning interface can be significant predictors of achievement (Joo, Lim, & Kim, 2012). What is interesting about this study is that it points to importance of customization in employee development to facilitate maximum results. Based on this, it is clear that training as an employee development tool, is an extremely effective and valuable tool that an organization can use to maximize the value of its human capital.
Evaluate the Internal University Structure as Related to Human Resource Development
Although many corporations require some sort of post-secondary education for entry level positions, they have also realized the importance of continuing education of their human resources that are specifically focused on the organization’s and the individual employee’s needs. To accomplish this, many corporations have begun to establish an internal university structure that is designed to target and address all of the educational and training needs that arise. Further, the limit to the scope of training that can be provided by an internal university structure is set by the organization itself, so essentially this scope is limitless, and as such, can be adapted and modified to suit the needs of the firm and its employees. Additionally, research has found that internal university structure, practical means that helps to build and manage corporate reputation of higher education institutions, as a topic of scientific discussions and the object of further research (Sontaite & Bakanauskas, 2011). As such, the internal university structure can be incredibly useful and valuable as a tool to facilitate human resource development.
- Joo, Y. J., Lim, K. Y., & Kim, S. M. (2012). A model for predicting learning flow and achievement in corporate e-learning. Journal of Educational Technology & Society, 15(1), 313.
- Margherita, A., & Secundo, G. (2011). The stakeholder university as learning model of the extended enterprise. The Journal of Management Development, 30(2), 175-186.
- Noe, R. (2010). Employee training and development (5th ed). New York: McGraw-Hill Irwin.
- Sontaite, M., & Bakanauskas, A. (2011). Measurement model of corporate reputation at higher education institutions: Customers’ perspective. Organizacijø Vadyba: Sisteminiai Tyrimai, (59), pp. 115-130.