Training, Knowledge, Competence, Performance : What Is the Relationship?

In-company training is not a temporary fashion of the last decades but a product of continuous development with the roots tracing back to ancient Egypt, where sons continued the crafting professions of their fathers and learned directly from them the required knowledge and competencies. In the second half of the 18th century, the industrial revolution caused rapid technology development and, with it, the rise of modern industrial enterprises. As a result, the demands on employee competencies have become more complex, and companies have become increasingly interested in developing the workforce under their own direction. These developments raise a critical question: How does employees´ participation in in-company training really impact performance? This research aims to analyze available theories on investment in in-company training, knowledge and competence formation, and performance of employees in the workplace as well as to explore empirical relations between these four variables. The findings show that the theoretical and methodological diversity of analyzed theories and empirical studies is quite large yet still limited. Numerous scientists have tried to explain relations between “training” and “employee performance” and to operationalize the latter. However, the relations and interdependencies between in-company training, knowledge, competence and performance of employees in the workplace have rarely, if ever, been explored thus far, and the economic efficiency of in-company training continues to be among the unknowns. The results of this first stage will be used to develop a theoretical framework for empirical research on the relationship between in-company training, knowledge, competence and performance of employees in the workplace