iBusiness, 2010, 2: 92-97
doi:10.4236/ib.2010.21011 Published Online March 2010 (http://www.SciRP.org/journal/ib)
Research on Enhancing the Effectiveness of
Staff-Training in Private Enterprise
Yang Hu1,2，Xinrong Yang1
1School of Economics and Management, Hunan Institute of Science and Technology, Yueyang, China; 2 School of Economics and
Management, Wuhan University, Wuhan, China.
Received September 25th, 2009; revised October 29th, 2009; accepted November 31st, 2009.
ABSTRACT
In 21st century, the enterprise competition is a comprehensive competition based on talent, capital, technology and en-
ergy. Especially, among all these elements, talent is the most important one. How to culture and set up the enterprise's
own personnel training system is the foundation to improve the business competition strength. Training is one of the
best approaches, while how to apply the training contents in practical work and to achieve the expected goal, has great
economic and social significance to help Private Enterprise develop much better. According to the relevant theories of
staff training, this paper indicated that it was meaningful to enhance the effectiveness of staff training in Private Enter-
prise after analyzing its current situation of staff training. Meanwhile, it also summed up the practical training proce-
dures, particularly for the Private Enterprise, and provided some constructive suggestions to establish and to perfect
the efficient training system in China.
Keywords: Private Enterprise, Staff training, Effectiveness
1. The Significance of Enhancing the
Effectiveness of Staff Training in
Private Enterprise
In view of the present situation, it is one of sensible
choices to improve the comprehensive strength of pri-
vate business via enhancing the training effectiveness.
Whether considering the recent financial crisis or con-
cerning about the business long-term development, en-
hancing the training effectiveness will become the
booster for business development.
1.1 To Help Revitalize the National Economy and
Boost Chinese Confidence
At present, the private economy has surpassed more than
50% of the total GDP of the National economy, solved
more than 85% of employment problems, and settled
more than 50% of the financial revenue. It has become a
regional economy, especially as an indispensable support
of County economy, however, the average life expec-
tancy of China Private Enterprise is only 3.5 years. Faced
with such an urgent reality, government is increasingly
attaching importance to support the development of pri-
vate enterprise. Beside policies, capital and other external
supports, it is more important to help private enterprise to
establish scientific management system and educating
mechanism.
Private enterprise must realize that enhancing the ef-
fectiveness of staff training is not only the natural choice
for enterprise itself development, but also the require-
ment of the times to revitalize the National economy and
fulfill social responsibility. In view of the microenviron-
ment, the improvement of enterprise-wide learning abil-
ity, will greatly enhance the enterprise competitiveness
and stimulate innovation capability. To build a loyal,
professional, and efficient management team and imple-
mentation team, so that the private business will go fur-
ther in the future development.
1.2 To be Favorable for Getting Rid of Financial
Crisis and Realizing Leapfrog Development
The global financial tsunami induced by the American
sub-prime crisis, presented great challenges to the ad-
vanced private business as never before. Since China has a
vast domestic market, the Chinese economy has main-
tained stable under the government's strong macro-control.
People are full of confidence that Chinese economy will
be the first to recover in the near future. The private busi-
ness as an important component of Chinese economy, it
should seize the opportunity to accumulate strength
through various forms of learning, to expand and en-
hance the overall level of business, so as to adapt to a

Research on Enhancing the Effectiveness of Staff-training in Private Enterprise 93
more intense, more standardized, and more sustainable
development competition.
1.3 To Accord with the Private Business’s Own
Development Requirements
Most Private enterprises pay little attention to staff training
of knowledge and skills, which is a common problem
nowadays in private enterprises. As many enterprises were
just in the form of workshop at their prior periods, mostly
depending on emotional management, and practitioners
were of low quality and poor skills. As corporate manager
always wanted to reduce costs, very little money was in-
vested in staff training, so that once the business turned to
be bigger and stronger, some employees would be un-
comfortable and work under pressure, especially the sales
department, without proper training, it would be com-
pletely impossible to have staff sales achievement in pro-
portion to his selling skills. In the limited time, use of the
limited resources, greater enhancement of the training ef-
fectiveness, will greatly promote the development of pri-
vate business.
2. The Chinese Private Business Status and
Problems of Staff Training
At present, the employee training situation in Chinese
private business is not optimistic. It can not imitate the
practice in the major companies, which can run their own
training schools or virtual educating. It is also very re-
stricted to get training experiences from other medium
and small enterprises.
2.1 Staff Training is Lack of Scientific Planning
and Execution is Poor
Now the effect of staff training in Chinese private busi-
ness does not perform well, since the lack of social ser-
vices in the appropriate training market, or because these
companies have not groped an effective approach. As
staff training can not keep up, private enterprises always
can only focus on “hardware” investments, but not im-
proving the staff quality at the same time, resulting in
enterprise “software” development can not keep up with
“hardware” development demands. As hardware and
software do not combine well, the effective result of in-
vestment in technological upgrading is not satisfactory.
As a result, private enterprises are increasingly feeling
complicated with staff training, realize that they can not
neglect it, but have no idea how to start with it, so that
there is an acute shortage of staff training activities, even
form a vicious circle in human resources management.
Most private enterprises lack of scientific norms in the
annual training plans. Mostly, personnel departments and
trainees just go through the motions to complete task.
Especially, in the production and sale type-based enter-
prises, all the members work hard to make achievement
in the busy-season. Everything is achievement-oriented,
so that no more time to talk about training. Only in the
off-season, it will do training symbolically as a way of
regulating work, even if doing annual training plan, the
final curve will be also performed only in the form of a
few random lectures, which is a fundamental departure
from the purpose of training.
2.2 Private Business Employees and Managers
are of Low Quality
The employees in private business are of lower literacy,
lower level of education, and lower quality than the ones
in state-owned enterprises and foreign enterprises. Based
on an investment in private business in certain place,
found that education situation in private employees are
really worrisome: primary 17.76%, middle school 45.74%,
high school 32.24%, tertiary and higher 4.26%; while the
distribution of age structure, the young people (30 years
of age) are in the vast majority of private enterprises em-
ployees, reaching 62.92%. 30–40 years of age are ac-
counted for 21.07%, two together are accounted for
83.99%. Private enterprises in other places also generally
like this case, but in the technology-inten- sive private
enterprises, the situation will be better, but young people
in the workforce and the proportion are the same.
In addition, a considerable number of private enter-
prises do not have human resource management depart-
ments, the ones possess of human resources management
department, of which the managers’ quality and ability
are not high. Private enterprises do not have high-quality
human resource management professionals, and human
resources managers of low quality fail to reflect the role
of human resource management, so even simply ignore
the human resource management, it would go so far as to
have not a full-time Personnel Administrator in an enter-
prise of thousands of people. While in Europe enterprises
with the same scale, most of them employ more than 10
human resource practitioners.
2.3 A Serious Shortage of Investment in Staff
Training
At present, the Chinese private business has already ex-
ceeded 60% of the total number of Chinese companies,
which is the largest business group in China, accounting
for more than 50% share of GDP. However, enterprise
investment in staff training is relatively low: only 8% of
the companies, of which the enterprise investment is ac-
counted for above 3‰-5‰ of the total sales incomes,
while 48.2% of enterprises, of which the enterprise in-
vestment is accounted for less than 0.5‰ of total sales
incomes. In the view of enterprise development and the
actual needs for talent competition, the low-input in
training will seriously affect their quality.
As many Private businesses suspect employees loyalty,
them only focus on the use of employees, without atten-
tion to training, are only willing to spend money on talent,

Research on Enhancing the Effectiveness of Staff-training in Private Enterprise 94
not willing to invest in training personnel. As a staff, he
does not only consider the issue today to earn a living, but
also consider the future earning capacity, if he felt work-
ing conditions not conducive to a better future develop-
ment, he would be reluctant to make long-term stay, and
to leave once there is a suitable opportunity. At this it will
form a vicious circle of human resources management.
2.4 Staff Training Form in Chinese Private
Business is Raw and Single
Private businesses basically use the traditional training
methods such as seminars, conferences and other forms,
which are really boring. By a survey of staff training in
private enterprises, found that private business staff train-
ing was still quite raw. Front-line operator training was
mainly aimed at new staff, only 38% of front-line opera-
tional employees had received pre-job training, and it was
mainly through meetings and the form of one by one, of
which the main contents were business history, post basic
skills, safety awareness and quality consciousness. The
training time was 1–2 days. Most front-line employees
were just simply ordered by the master, and then directed
by old workers, to become familiar with jobs within a
week or so. Some employees even immediately got ap-
pointment without any training. Managers complained
that staff quality was too low, someone tried to train the
front-line staff in way of courses, but staffs couldn’t
understand.
The managers above middle level, whether private
owner members or non-private owner members, hardly
get any training, despite the private business owners are
usually discontent their managers. Private enterprises are
accustomed to ready-made talent recruitment, only a
handful of managers who are wished to be reused or to
be promoted have training opportunities. The full-time
learning opportunities are naturally very small, usually
only when companies will introduce new equipment or
new technology, and such opportunities are always given
to private owner members. As government’s request, the
financial members usually have to participate in training
organized by the relevant government departments,
training and study time is about two weeks.
2.5 The Lack of Scientific Evaluation System and
a Low Conversion Rate
Private business almost never make training assessment,
private business owners may think that training can bring
little or no return on investment; managers and trainers
may lack of the expertise to conduct training assessment;
managers and trainers do not want to assess the input
time and energy; private business itself is lack of staff
training and does not regulate, nor taken seriously. It is
precisely because of no training assessment; the effi-
ciency of conversion from training contents into practical
productive is very low, obviously, the training will not be
able to play its expected role. Managers believe that the
training led to little practical significance, the staffs think
that enterprises do not attach importance to staff devel-
opment. In a long time, enterprise management will re-
sult in errors, reducing the staff-to-business sense of be-
longing, or even quit.
3. The Countermeasure to Enhance the
Effectiveness of Staff Training in Private
Business
After the completion of start-up, most of the private
businesses enter the most dangerous growth stage. One
of the roots is there is not a clear development strategy in
enterprise, when the business scale is keeping expanding,
the management can not control it. Enterprises short-
lived and disappear instantly. As private business man-
agers, it is required to firstly clear business development
strategy and objectives, then gradually introduce and
implement the scientific systemic management systems
and tools. The training and management are mutually
reinforcing, both cooperation and coordination, will ac-
celerate the steady growth in business.
3.1 To Establish the Correct Concept of Staff
Training, Increase Investment in Human
Capital
In connected with the private business problems in per-
sonnel quality and staff training, firstly, it should focus
on the personnel training and reserves. Through the
methods of the training and introduction of talent, etc, it
can make up the disadvantage of a relatively low overall
staff quality. As management team, it is more required to
enhance learning, to master the systematic and practical
management knowledge, skills, and enhance the pattern
of operation and management as soon as possible. If
conditions permit, it should be appropriate to use profes-
sional managers in the enterprise operation and manage-
ment. In addition, the reasonable investment to ensure
the smooth conduct of training, private enterprises must
be willing to invest in training, to improve the training
budget. Considering the current status of private business,
learn from the most advanced training concepts to effec-
tively enhance the effectiveness of staff training in pri-
vate business.
3.2 To Develop Practical Training Programs and
Goals
There should be plans and objectives in training, it must
proceed from the corporate strategy, and corporate cul-
ture characterized by a combination, so as to meet both
of organization and staff needs.
Training program development should be modeled
according to enterprise development plans, be fit to it so
as to become business forward boosters. For private
business, with long-term development goals, there must

Research on Enhancing the Effectiveness of Staff-training in Private Enterprise 95
be an assorted training program to promote the develop-
ment of enterprises. In addition, the process of planning
is also the process of excavation needs. Refine the needs
of enterprises and employees in order to enable the
training targets.
At the same time, before the start of training, it should
set its goal to achieve according to the development
strategies. Not only convenient for the effectiveness of
training to do tracking assessment, but also can enhance
the trainees self-confidence, promote training carried out
smoothly.
3.3 To Combine the Training with Staff Career
Planning
As private business, it should focus on human resource
development and management, preparing for enterprise
long-term development to accumulate enterprise person-
nel. The training is important content in human resources
development and management. Companies must com-
bine staff career planning into the training plans, promote
staff active learning, and apply training contents to the
actual work, only need to well lead the strategy and di-
rection. Set up training programs in turn, will get the
psychological identity from staffs, stimulate them self-
interest in learning, and promote training to achieve better
results. If the staff performance is improved, the entire
team performance will be followed to be improved, so as
to achieve the enterprise's growth. A good learning at-
mosphere will be good to promote training to carry out
the work; otherwise, will be constrained to carry out the
training and enterprise development and growth. Private
enterprises must not only to strengthen the hardware, but
also should pay attention to soft power enhancement.
3.4 To Design the Suitable Training Contents
After set up good training programs and goals, it’s re-
quired to design the suitable training contents according
to the actual needs of private enterprise, also including
training methods and choosing trainers.
1) Select appropriate training methods
For training, the popular is not the best, but only suit-
able for enterprises actual situation is the most important
criterion. First, for the training methods, companies can
have a variety of options, mainly divided into two cate-
gories, namely house training and external training. Can
either choose the traditional classroom teaching model,
or can use video to expand indoor training, outdoor
training, such a variety of ways to expand.
2) Select appropriate courses
For course selection, training directors should not be
affected by the trend, but have to keep calm and rational
choice. It is necessary to take into account the role of the
curriculum of business, but also take into account the
cost of the training budgets. Ultimately must be clear that
effective curriculum should not only actual combat, but
also minimizing the costs.
3) Select appropriate trainers
With a good curriculum, but also have to select a good
trainer, it must be cautious no matter from internal or
external. Companies do not have to choose the trainer of
big name, but to learn more about the trainer's knowledge,
experience, and personality charms. And then compare it
with the enterprise training culture whether fit or not, this
will make training more effective.
4) Prepare the necessary tools for training, equipment
and venues.
In order to successfully carry out the training to reach
the desired objectives, training requirements should be
well prepared. Used properly, can not only stimulate the
enthusiasm of staff, but also help to strengthen the effec-
tiveness of training.
3.5 To Emphasize on Training Conversion
The most crucial aspect of training is how to apply the
content of the training and to promote the work of the
actual performance improvement. The errors of this part
will fall short of the whole training, but also a serious
impact on the follow-up implementation of the training
program. As enterprise, it is required to fulfill the fol-
lowing aspects:
1) Make good unity of the training spirit in the ideo-
logical aspect
Trainees must be noted with learning objectives before
training, training organizing department or full trainees
should take sharing experience and seminars. Training
department should give trainees the appropriate learning
tasks, to enable participants possess of the learning pur-
pose. After training, trainees are the light of their own
learning experience and corporate practice, work-sharing
discussions with the staff, firstly make good unity of the
training spirit in the ideological aspect.
2) Learn to meet practical needs in the applications
aspect
It should provide the opportunities of applying learned
skills in various forms for the trainees. Training contents
are based on the corporate strategic planning to develop,
and enterprises have to provide more application oppor-
tunities as possible. Managers have to track the imple-
mentation, such as by methods of trainees’ feedback. And
it is to be combined with the staff performance appraisal
and work responsibilities together, to develop a formal
implementation of the provisions, promote enterprises to
form the learning atmosphere of to meet practical needs.
3.6 Do Well the Effectiveness Assessment and
Feedback
For the training effectiveness assessment, there are many
methods and practical tools. As to the status of Chinese
private business and the effect in the actual training as-
sessment, integrate a set of suitable methodology for
training assessment in private business:

Research on Enhancing the Effectiveness of Staff-training in Private Enterprise 96
3) Emphasis on the application of assessment data and
feedback.
1) Identify the assessing level
Enterprises assessment level is of 1–4, including re-
flecting level, learning level, behavioral level, and results
level. First-level mainly uses the questionnaire, interviews
of participant, observation and other methods; second
level mainly include examinations in courses; third level,
investigate trainees three months after training, according
to workload and changes in the performance; fourth level,
will be linked to performance appraisal, if trainees can
achieve the standards of post-work requirements, then
the training is effective.
With the improvement of enterprise training mecha-
nisms, advocacy private business sum up in line with job
responsibilities of the competent model, construct a good
foundation for the smooth operation and management
work, and for the standardized and scientific manage-
ment system. Completion of the training does not mean
the end of training. As a manager, should considerate
from business global development, based on the training
evaluation data, sum up each advantage and disadvantage
of training to provide the most useful supplement for
next time. To make the training work can be carried out
more smoothly, gradually form a complete and efficient
training system and promote management system to be
more structure and maturity.
2) Select the assessment methods
Training assessment methods, including testing meth-
ods, behavioral observation, target achievement of as-
sessment method, cost-benefit assessment methods, learn-
ing reporting of the assessment method, assessment method.
Private enterprises should make flexible choice in con-
junction with training practice.
From the above, sum up the operation flow as Figure 1
for practical training system in private enterprise:
Judgement before training
 What are the differences between organization
demands and existing human recourses?
 What are the differences between personnel de
mands and provided recourses by organiza-
tion?
Research on demands, make training plans
 What are the demands of organization?
 What are the demands of personnel?
 What are the strategies of business?
 Make training plans and targets according to
business cultural.
Combined with staff carrier planning
 Trainees more deeply understand the signifi-
cant of training.
 Combine personnel development with business
development, develop the loyalty of organization
Design the training contents
 Which contents and standards should be introduced?
 Which training methods are more suitable?
 How to choose the trainers?
 What equipments and materials are required?
Emphasis on conversion
 After training, do well in sharing discussion
according to the pre-targets.
 Enterprise should provide opportunities of ap-
plying learned skills in various forms for trainees.
Set up high effective practical train-
ing system.
 Make training plans and target
according to enterprise develop-
ment strategies.
 Combined with staff carrier plan-
ning, pay attention to conversion,
and learn to meet practical needs.
 Choose the most practical con-
tents and trainers.
 Make assessment, conclusion, feed-
back and constant improvement.
Assessment and feedback after training
 Confirm assessment level, choose assessment
methods.
 Focus on the application and feedback of
assessment data, so as to prepare for the next
training scheme.
Figure 1. The operation flow of practical training system

Research on Enhancing the Effectiveness of Staff-training in Private Enterprise 97
4. Conclusions
In the view of the enterprise organization forms, more
and more private enterprises have adopted the modern
enterprise system. From the development model perspec-
tive, the private enterprises have been gradually expand-
ing from pure pursuit of quantity to the operational scale,
technology level, product quantity and quality, high ef-
fective management, cost-effective direction. Training
has been more and more concerned by private enterprises,
in-depth research on enhancing the effectiveness of
training in private business, is bound to provide a good
reference and protection for the rapid development of
private enterprises. To change the short life expectancy
of private business, so that it can avoid market risks, de-
velop to standardization, persist, and large-scale direction.
5. Acknowledgements
This paper is supported by China Postdoctoral Science
Foundation (supporting ID: 20090460995).
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