ABSTRACT
As organizations seek to improve competitive advantage and promote high performance work practices, the human capital component of the productivity equation is receiving increasing recognition (Bowen & Ostroff, 2004; Cavanaugh & Noe, 1999; Delaney & Huselid, 1996; Ling & Jaw, 2006; Ulrich, 1997). Both academics and practitioners now emphasize the “human equation” for competitive advantage (Pfeffer, 1998). Shrinking workforces due to downsizing, outsourcing and other cost cutting measures have had profound consequences for organizational human capital capacity. Wright, Dunford and Snell (2001) suggest that organizational profitability and competitive advantage can be sustained only through enhancing product quality and increasing employee productivity. To maximize employee performance, training and development programs are the primary methods that organizations use to build organizational human capital capabilities (Holton, Coco, Lowe & Dutsch, 2006). Training magazine (2006) recently estimated that US organizations budgeted US $56 billion on employee education and learning programs.
