Once a firm has established its labor force, it must attend to maintaining them as satisfied, productive workers. Techniques used for this purpose include appraisal, training, and compensation. Human performance is often a key to organizational success. The ability of a firm to develop the performance of individual employees can be a major factor in a company being competitive. Development includes not only the ability of an individual to perform a current task, but the growth into new and more challenging assignments too.
Training is the process of upgrading the skills of the human resources already working for a firm.
These include both technical and managerial skills. TQM firms will have to commit significant resources toward the training of their employees. A typical norm is five percent of the hours spent on the job should be devoted training and development of employees. The issue of compensation is important in both acquiring and maintaining a work force. Important issues of equity in the pay structure must be implemented.