Exploring the link between management training and organizational performance in the small business context

Abstract

Purpose This study aims to explore the impact of management training on organizational performance in the small business context to evaluate whether formal management learning interventions bring organizational benefits to small enterprises. Design/methodology/approach A qualitative approach was adopted consisting of 100 interviews with small firm owners/managers and employees working in 50 Greek small enterprises operating in the manufacturing and services sectors. Participant firms consisted of 25 small enterprises (9 manufacturing firms and 16 firms in the services sector) whose owners/managers have completed various formal training interventions (i.e. accredited seminars and workshops, business and management courses, etc.,) and 25 small enterprises (16 manufacturing firms and 9 firms in the services sector) whose owners/managers have not completed any sort of formal business training and have never attended formal management courses. Findings The findings revealed that management training in small businesses had a positive impact on organizational performance. In particular, those respondents that completed formal training interventions argued that their firms achieved increased profitability during 2017 and 2018; improved staff productivity; very low staff turnover rate; and enhanced staff satisfaction and motivation compared with the less-trained owners of small firms in the same sector. The participants pointed out that their formal education in business and management has enabled them to realize the importance of employee learning and job design for staff motivation, whereas it has helped them to manage change more effectively. Practical implications The present findings have major implications for practitioners (i.e. small firm owners/managers), as they point to a positive link between management training and organizational performance, thus encouraging them to invest in their self-development. Originality/value The existing evidence around the impact of management training on firm performance has been based mostly on quantitative research in large organizations. However, the available empirical studies fail to explore in-depth how formal management training can help smaller enterprises achieve improved organizational performance. Against this background, the present study sheds new light on this area.

Formation continue de la main-d’oeuvre : pour une collectivité qui se mobilise autour du développement des compétences

“…Les organisations elles-mêmes sont les premières bénéficiaires d'un investissement dans la formation et le développement des ressources humaines, qui auraient des effets positifs sur les performances financières, sur la satisfaction des clients, sur l'innovation, sur la qualité des produits et services ainsi que sur la pérennité de l'entreprise (p. ex., Aguinis et Kraiger, 2009;Panagiotakopoulos, 2020;Tzabbar, Tzafrir et Baruch, 2017). Un accroissement de la performance individuelle et de l'équipe, de la mobilisation, de la motivation, de l'engagement organisationnel ainsi que de l'attraction et de la fidélisation des employés constitue également des conséquences positives de l'investissement en formation et dans le développement des compétences (p.…”

Strategies for unlocking the latent superpower of management training: motivation from Greece to level up by investing in your managers

“…The review is based on ‘Exploring the link between management training and organizational performance in the small business context’ by Panagiotakopoulos (2020), published in ‘ Journal of Workplace Learning ’. This research paper conveys the multifaceted benefits – for managers and owners of small firms – of investing in their self-development as a way of driving enhanced organizational performance.…”

“…Management level skills are particularly critical in the context of smaller firms, which are challenged by limited resources, fierce competition, and the need to adapt quickly to emerging trends. A research paper by Panagiotakopoulos (2020) concentrates on the positive impact of formal management training within small firms, by exploring in detail how management training can bring wider success to these firms. Data for the study were gathered from 100 interviews conducted with employees, managers, and firm owners from 50 small businesses in Greece’s manufacturing and services sectors.…”

Las PYMEs lideradas por mujeres y la capacitación: un estudio exploratorio

“…Sin embargo, se considera que es insuficiente el tiempo que la empresaria le dedica a la capacitación dado que no representa ni siquiera una hora a la semana (Monge González & Rodríguez Álvarez, 2014), lo anterior, se debería entre otros aspectos a la responsabilidad familiar que aún sigue recayendo sobre ella (Value for Women, 2018). Esta es una situación importante y que se debe atender para que la empresaria reciba más capacitación dado que esta le permitirá el desarrollo de habilidades gerenciales clave, que le permitirá planear y organizar el trabajo, brindándole la capacidad de motivar y entrenar a otros, reduciendo el ausentismo, la rotación y elevando la motivación de su personal, lo cual le traerá resultados empresariales positivos (Panagiotakopoulos, 2020;Tverdostup & Paas, 2017).…”

“…Por otra parte, de acuerdo con Inmujeres (2009) y Santhi (2017) las mujeres señalan que la falta de capacitación técnica se encuentra entre los principales problemas que enfrentan, por lo que capacitar en esta área les puede ayudar a resolver éstos. Este es un aspecto que se debería reforzar, pues estudios recientes señalan que mejorar las habilidades de todo tipo de trabajadores, incluidos los gerentes, es fundamental para mejorar el desempeño de la empresa, sobre todo para las de tamaño pequeño (Panagiotakopoulos, 2020).…”