Read the following passage and answer the following question.

“Our assets walk out of the door each evening. We have to make sure that they come back the next morning” (as stated by Narayana Murthy former, CEO of INFOSYS.). At a time when organisations are debating the strategic importance of their human resources, Infosys, a consulting and software services organisation, includes its human resources on its balance sheet to affirm their asset value. The rationale for this is as follows: “The long-term success of a company is usually examined on certain financial and non-financial parameters. Human resources are among these new non-financial parameters that challenge the usefulness of evaluating corporate success solely on traditional measures. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organisation.” As a knowledge intensive company, Infosys recognises the value of its human assets in maintaining its competitive position. It realises that these assets can easily walk away, as competitors in India and abroad covet its IT talent. Consequently, the challenge facing Infosys is how to attract, retain and develop its human assets in a highly competitive and dynamic environment?

In the above passage CEO of INFOSYS, Narayana Murthy stated, "Our assets walk out of the door each evening. We have to make sure that they come back the next morning”. This depicts the importance of human resource to any organisation. For the development of its employee and increasing it's efficiency, the company undertakes various training and development programmes.

According to you, which of the following are the benefits of training and development to the organisation?

1. Leads to less wastage of efforts and money
2. Enhances employee productivity which increases firm's efficiency
3. Lower profits level is achieved, but is compensated by increased level of efficiency
4. It reduces absenteeism and employee turnover
5. Improved skills and knowledge leading to a better career of an individual

1, 2 and 4

The correct answer is option 3- 1, 2 and 4.

The benefits of training and development to an organisation are as follows:

• Training is a systematic learning, always better than hit and trial methods which lead to wastage of efforts and money.
• It enhances employee productivity
• both in terms of quantity and quality, leading to higher profits.
• Training equips the future manager who can take over in case of emergency.
• Training increases employee morale and reduces absenteeism and employee turnover.
• It helps in obtaining effective response to fast changing environment – technological and economic.

The last point in the question i.e. "Improved skills and knowledge leading to a better career of an individual" is a benefit of training and development, but to the individual and not the company.