Training and Development

Contemporary organizational setting recognizes the need to upgrade knowledge, skills, abilities, and personal attributes (KSAPs) of subordinates as an important feature of management and contributory factor to organizational performance. While competition becomes even more complex, training subordinates is a potent solution to cope up with the emerging challenges of the global workforce. Training is usually done prior to actual employment yet it extends beyond the requirement for both organizational and subordinates’ competitiveness and competency. The development, structure, motivation, improvement of the subordinates fundamentally depends on the leadership, mandate and vision of the organization (Rainey and Steinbauer 1999). Most organizations and their management invest on human resources as human capital is known to be a resource-based competitive advantage. In this case, social welfare and social work professionals need training and education to ensure their adequacy and preparations to serve their role. Given the appropriate training programs for subordinates, it is tantamount to productivity and success. Training is important, as demanded by learning organizations, because subordinates need to take advantage of the opportunities of further enhancing skills and enriching knowledge through the programs and exercises their company invests on.

On this case, the author has recently been appointed State Training and Development Manager at AIS Insurance, a national general insurance company with 270 employees in Perth. AIS has been operating successfully for more than forty years, but recent years have been tough as the market has become increasingly competitive. Staff turnover, particularly among younger employees, has been increasing steadily in the last few years. The management structure includes six senior managers/executives and 20 middle managers. The average age of the management group is 51 and most have been promoted from within based on technical competence. A large percentage have no formal qualifications in management, and few participate in management development activities. Some have done no management development for 10 years or more. The prevailing management culture is a very traditional ‘command and control’ culture, and the organisation has no management development strategy in place.

This report is directed to the CEO and focuses on arguing for the development and implementation of such a strategy. It also assesses whether the organisation’s current situation is effective and sustainable. Further, it outlines the kinds of programs needed both to ensure that current managers have the skills and knowledge required to be effective, and that the organisation is equipped to develop managers for the future. There is also an inclusion of a draft policy to frame the programs that are suggested. All generalizations are supported by relevant literature on management development.

Training and development: why is it important?

In the field of human resources management (HRM), training and development is among the main areas of the HR function (Sims 2002). Training of subordinates is basic to every organization (Carnevale and Stone 1994, 22). The value of human capital is enhanced by gaining higher performance potential such as new tasks, functions, and KSAPs (knowledge, skills, abilities, personal attributes) obtained and cultivated during trainings. This is where the importance of training recognized as a crucial issue for businesses, organizations and institutions. According to Hornsby and Kuratko (2005), training and development activities can help companies acquire a staff with the right combination of skills and motivations which a company needs to be competitive. They further explained that this process includes three different types of activities namely: orienting the new employees; helping employees acquire new skills and helping the employees strengthen existing skills (Hornsby and Kuratko 2005, 152). Since training in profitable companies and organizations is somewhat related to social work, due to its similar usage of the concept of management, it is apt to integrate both fields provided that training is focused on staff and individual development.

Furthermore, training creates considerable impact on attitudes and knowledge in positive behavior support (Lowe et al. 2007). In an extensive anthology of literatures, some training has been established to be valuable in developing staff knowledge and creating outstandingly significant impact on practice (i.e. Berryman et al. 1994; Allen et al. 1997; Dench 2005 cited in Lowe et al. 2007). Fraser and colleagues (2006) assumed that training consists of a mix of transferable and non-transferable skills. They noted the veracity of the frequent argument of experts that “training is a form of human capital investment” resulting to “a rate of return in the form of a higher marginal product of trained labor” (Fraser et al 2006, 125). The acceptance of this belief was coincided to the likelihood of high wage employment on the part of knowledge workers. Lowe and colleagues (2007) acknowledged the need for effective staff training as a key factor in high quality service provision. Staff are said to be well-rained and skilled in providing high quality services to clients. Through training, minimum stress level could also be expected particularly in dealing with difficult or challenging workplace atmosphere. When subordinates are competent in all tasks being offered, high quality services is palpable.

Similar to other organizations and institutions, there are many trends in training that are being employed at present. Goldstein and Gilliam (1990) have suggested that training has to adapt to four major trends occurring and affecting its very nature including: changes in the demographic characteristics of the workforce; increased technology; shifts from manufacturing to service-oriented jobs; and the increased influence of international markets. Managers in various industries today invest in training programs directed to the members of their staff in order to be updated with the latest developments in whatever sector they belong in terms of function. Goldstein and Gilliam (1990) described training programs as learning events and methods deliberately and systematically focused on the overall work environment and condition. All the trends that exist nowadays are relevant in the overall performance of managerial roles inherent to the manager especially in global environment. According to Sims (2002), the systematic process of training involves and not limited to a variety of planned programs designed to advance level of competence and performance among individuals, groups, and/or organization as whole. The scope of training initiatives vary and include operation, technical, sales, customer service, and various levels of leadership training (Sims 2002).

In the present day work environment, expectations exceed regarding the workloads and task requirements among employers and employees. Multi-tasking defines the current situation in most of business organizations as advances in technology especially in the use of the computer and the Internet continues. As the Microsoft and other office tools computer programs increase in number, administration management keep on investing on measures like trainings, seminars and conferences that will exhaust the potential of every employee. The improving services of Internet providers and the Internet features in general, likewise add on the far-reaching horizon of the employees’ capability to develop and learn skills available in the workplace that their organization will benefit from.

Employer-provided training is important because studies have found that on-the-job training is strongly associated with wage increases (Barnow, 1987; Lynch, 1992; Hill and Wiens-Tuers, 2002). Moreover, training is a form of human capital investment whether that investment is made by the individual or by the firm (Becker 1975). A firm has the incentive to invest in the human capital of its workers only if there is an expectation of a return on its investment. Loewenstein and Spletzer (1997) found that firms often delay training to determine whether workers are good matches and therefore have a lower probability of leaving the firm. A strategic approach to training is imperative nowadays for training to be seen to be meeting business needs and adding value (Woodruffe, 2000). For this to happen, the training function needs to examine current and future business needs, and set appropriate priorities for training interventions.

Business organizations offer two-way learning experience within the company between and among the employers and the employees. Employers benefit largely from trainings that they offer to staff and members of the firm given that the expected knowledge and skills were learned through the organizations venture on their human resources. At the best possible results, the organization will gain competitive attitude in the business world by housing in competitive and qualified workers. Employees on the other hand, are given the opportunity to improve on their work capabilities as qualified and productive members of the modern and information age work force.

Champion-Hughes (2001) highlighted the importance of high work life quality through good supervision, working conditions, pay and benefits as well as challenging and rewarding jobs. She said that these conditions will provide opportunities for employees to contribute in the overall effectiveness of the organization as they become more motivated and productive members of the company’s work force with positive self-esteem and improved morale.

The importance and demand for workplace learning though is clearly evident in companies that offer integrated learning solutions to different industries. Today, workplace learning is changed into a productive business venture. There are companies now that offer such workplace training services through modules and Internet links and other instructional materials to a lot of business industries. Workplace learning benefit both the employee and the employer in attaining the same work goal of the business company, that is, to gain higher productivity through good working conditions between and among qualified and competitive work teams.

Different Approaches

Human resource management (HRM) is known and accepted in the broadest sense of the term, as a form of management that includes “all management decisions and actions that affect the nature of the relationship between the organization and the employees – its human resources” (Beer et al., 1984). The tasks of those belonging in HRM can be complex as it involves all issues that encompass employee and firm relationship. Today, it can be said that role of HRM in the organization has been expanded and improved as new ways to handle employees are discovered.

Believing that the most important asset of a business is the people in order to achieve sustained business success is the core philosophy of human resource management (HRM). Realizing this leads to a strategic management of people within the organization. Its philosophy is based on the simple belief that human resources are the most important asset in achieving and sustaining business success. Human resource professionals basically deal with such areas as employee recruitment and selection, performance evaluation, compensation and benefits, professional development, safety and health, forecasting, and labor relations (Lipiec, 2001).

Ensuring employee performance requires establishing a level of competence which the employee should be aware of as a target to be achieved. This is the measure to be used by managers in determining compliance with the standard and in identifying problems met by the employees in meeting the standard. In developing a training program to enhance the productivity of employees the manager will look at the competency problems of the employees and fashion the program to enable the employees to reach and even exceed the competency standard established for their work. This requires a great amount of perceptiveness on the part of the manager in determining what method of training will be most effective in improving employee competence. Some of the training includes computer software training, internet-based training and self teaching by encouraging innovativeness in the workplace (Sims, 1998).

There are various training and development methods such as on-the-job training, classroom training, internal training courses, external training courses, informal training, on-the-job coaching, life-coaching, training assignments, mentoring, and tasks, skills, training, technical training, product training, behavioral development training, role-playing and role-play games and exercises, attitudinal training and development, distance learning, accredited training and learning. All of these are part of training menu and are all accessible to utilize and relate according to individual training and organizational training needs. Training is also on hand far beyond and outside the classroom. More prominently, training or learning, to look at it from the trainee’s view is anything offering learning and developmental experience. Training and learning development includes facets such as morals and principles; stance and behavior; skills and knowledge and as well as leadership and willpower. Development isn’t constrained to training; rather it’s anything that aids a person to nurture in aptitude, expertise, poise, broadmindedness, dedication, inventiveness, inter-personal skills, understanding, self-control, enthusiasm and some more.

A lot of articles and researches have inquired into the different levels of workplace learning and its complexities as well as the different perspectives that apply to this concept. Some materials dealt with the nature and characteristics of the different types of workplace learning while some concentrated on the benefits that the individual employee and the management gain from company trainings from which the company will likely prosper. Others are materials that present the business ventures that offer services in training employees of different companies from varying work fields and disciplines. The following suggestions state the possible approaches that ABB could adapt and implement in managing their human resources in order to avail of the benefits of enhancing the potential of the members of the workforce:

• Employers need to enroll their staff in annual or quarterly training courses to upgrade their skills and enrich their knowledge so as to foster individual and personal development and improvement. Possibilities of promotion through their acquired knowledge and improved skills as competitive employees should always be reminded to the staff as a form of motivation to encourage productive outputs.
• Incentives in the form of financial aids like bonuses and other material compensations as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorse by the company to boost confidence and motivate the employees. This in turn will also be profitable to the organization itself due to increased output of the work force.
• It is also apparent that equal relations between the employer and the employees should be practiced to encourage productivity in the business organization. Enhancing good working relations among all the employees and preserving a good working environment and atmosphere ideally, will provide harmonious relationship inside the business organization. Maintaining such condition within the office will elicit productivity from the employees as they enjoy their duties of accomplishing their tasks and will help in reducing stress and eventual burnout in the workplace.
• Encouragement of wider work responsibility of basic skills such as development and learning courses should be given to employees on specified times of the year. This will restore fresh knowledge to old employees. In the case of newly hired staff, more comprehensive and rigorous training exercises should be applied to better prepare them of the workloads they will be responsible of in the actual business transaction and work process. Promoting individual competence and competitiveness among the staff and other members of the organization will be of benefit to the company since this will uphold and advance the initiative work attitude.
• Team building exercises wherein work peers as well as the supervisors will be participating should be regularly held. Bonding activities like out of town trips can be psychologically helpful to all the employees that will elicit bond among the people inside the company as well as for the employers to know their work team.
• Since workplace learning and training programs in business organizations is a common practice nowadays, more trust should be given to the work team of the company. Entertaining and respecting solicited opinions and ideas of ordinary employees will be of help in setting the corporate goals of the company since the staff is encouraged to think as owners of the business enterprise.

Impact on the Organization and its People

Education and previous work experience alone can not mold a fully functioning employee. Business organizations which offer similar occupational position do not necessarily require the same employment qualifications. Specific agencies and firms hire prospect employees based on the business firm’s particular specifications of the nature of their businesses. With the current modernization that the world experiences these days, efficiency and productivity has always been a major concern in the competitive business environment. Assessing the possible contributions of prospective employees during hiring period gives the employers an idea of how an applicant will perform in the business. Business executives at present place high value on predicting the quality and efficiency of the work force early on as more and more companies continuously practice the administration of examinations during job applications.

Learning programs inside the business organization significantly supply the needs of the companies when these institutions call for improved working relations among the staff during new business ventures for example so as to ensure higher productivity level. This will only be possible if the management houses quality and competitive supervisors who can reach out to the ordinary employees of the organization. Learning experiences provided by the business company help clarify their expectations of the company. Usually workshop programs within a number of business establishments serve as self-evaluation and company evaluation between the employees and the employers.

Companies in fact spend millions to train their employees. There are companies that have to train practically 50% of their employees because the organization is running so inefficiently. In cases like this, the lifeblood of the company (the human resource) is practically on the brink of collapse. Add to this, the management is banking on the training team to bring about miracles for the organization.

In a competitive labor market workers should invest in their own general (and to some extent, specific) training: the return on their investment comes in the form of subsequently enhanced earnings. Expectations with respect to future skill requirements and occupational demands may well be less than fully rational, and any inherent biases will lead to inappropriate decisions on investments in training. However, the effectiveness of training depends so much on the trainer: the assessment on the weaknesses and strengths of the company and the workforce, job satisfaction, competency of the employees and several needs assessment analysis chosen from an array of approaches and techniques.