Organizational leadership plays an important role in the success of corporations. Moreover, effective leaderships harvest an excellent external and internal relationship with it’s varies stakeholders., leadership is a process that cans effects character s or the behavior of employees to achieve organizational objectives. Furthermore, leadership can facilitate and build strong communication that can influence employee attitudes as well as the behavioral outcome. Additionally, Dowling (2004), argues that good quality of leadership together with effective management competence contribute to boosting organizational reputation. Therefore, it is important that organizational leaders invest in the appropriate learning and development programs. Employee training helps employees to become better in their job, get them motivated contributing increased in the productivity and performance of the organization. Thus, placing the company in a better position when facing competition from its competitors. Therefore, it is important to acknowledge that a company’s managerial competencies, leadership style remain to be the most powerful component that shapes its organizational culture.
The organizational culture is defined in many ways in the existing literature and is said to be rooted deep in the value and the norms of the company as well as in the various processes, policies and organizational structures and leadership style. Culture is unique to every organization and to a large extent shapes employee behavior. Hence, employee behavior of an organization is guided by their firm’s culture. For example, organizations that embrace employee engagement at all levels will have a different culture than an organization where decisions are initiated top down. However, effective organizations have a culture that is an ongoing system that changes within the organization at all levels. Additionally, culture affects employee productivity, performance, engagement and ethical behavior. Moreover, corporate culture is a two-way process in regards to organizational change and resistance to change. As change is inevitable, organizations invest in effective training and development of their employees to cope with the prospect of an economic crisis.
Mansouri et. al (2015) stated that there is no value of training in isolation and that it can only be determined in the form of opportunities and gains within a given environment. Hence, it is important to keep the training programs accountable like other investments are accounted for. Still, there arise the conflicts in costs evaluations related to training and the pressure to reduce spending on training in the times of recession as the training costs are considered as operational costs in that times. This has led to a neglect of training programs especially in the times of economic downturn. Cameron and McNaughtan (2014) also noted that when organizations neglect the training and development of employees, then they suffer in both short and long runs. It is confirmed by Lampel et. al (2014) that reluctance to invest in training is common as 33% of the managers in 16 different industries and 278 organizations consider training and development to be expensive and less useful as the costs of programs costs them high and problems related to implementation are to be managed. However, the managers also report that the organizations that want to improve themselves and want to respond to the changes positively, they make training and development as their priority for which they are ready to overcome the hurdles that eventually affect the training problems but only for short periods.