ASSESSING TRAINING EFFECTIVENESS IN LARNACA’S Journal of Business Administration Online Vol. 10, No. 1, Spring 2011 1 ASSESSING TRAINING EFFECTIVENESS IN LARNACA’S HOTELS Michael Anastasiou Internapa College-Cyprus m.anastasiou@internapa.ac.cy Abstract This research article presents the findings of research undertaken during 2010, in the hotel industry in Larnaca-Cyprus. The aim of the article is to assess the achievements and effectiveness of training. The investigation addresses the impact of training on improving service quality standards and employees’ skills. The evaluation concerns the Content, Input, Reaction and Outcomes (CIRO Model) of training. A survey was used and questionnaires were piloted on HRMs in order to secure the validity and the reliability of the research instrument. A sample size of 352 (n= 352) employees participated in the research. Findings showed that training was effectively implemented and acknowledged by all participants, highlighting the role of front-line supervisors as training facilitators and agents of learning. On-the-job training is an important source of tacit knowledge, promoting novelty ideas and maintaining a defense mechanism to operational drawbacks, such as diversity and low performance. However, training needs’ assessment and training evaluation policies do not exist in all hotels. HRMs miss an opportunity to implement the assessment process as a diagnostic tool in evaluating the achievement of training and to decide whether or not training has met the pre-set training goals. As a consequence, hotel organizations risk financial resources invested on training. For this purpose, top management should integrate training and develop a training model in order to assure the compliance of training programs to a specific purpose and organizational goals. This will result in the development of an adaptive workforce that is able to respond to the changing business needs and to create employees capable of contributing to service quality improvements in the hotel industry. Key Words: Training, CIRO, Cyprus, Cypriot Hotel Industry, Tourism Sector, Training Evaluation, Training Need Assessment. Introduction Tourism in Cyprus has created a diversified facet of jobs, requiring high and low specialization skills. Thus, the labor mobility detected since the island’s accession in the European Union (EU) resulted in enormous arrivals of employees from overseas, with lower living standards (Karris, 2006). As a consequence, the diversified workforce substituted the homogeneity of the local workforce in the hotel industry (Angellodemou, 2007). The new structure of the hotel industry demographics gave rise to diversity challenges and opportunities, drawbacks and obstacles, as well as workplace communication problems. Also, the rising international competition in relation to the global recession has further increased pressure to improve the competitiveness of hotel organizations (Allen and Snyder, 2009). Indeed, the need to improve organizational competitiveness dictates the necessity to boost performance and productivity. Productivity in Cyprus’ Hospitality Industry High performance and productivity has been a great challenge since Cyprus was classified among the less productive countries within the EU (Eurostat, 2009). The main criterion was the productivity of work in relation to the production of GDP (Gross Domestic Product) per hour of work (Eurostat, 2009). Based on the latest report of Eurostat, the productivity of work in Cyprus (GDP per employee) for 2008 was found at 87.7% of the EU average. Cyprus was classified in the 15 th place amongst the 27 countries of the EU. In 2007, the same indicator