effective human resource training and development strategy

Welingkar’s Distance Learning Division

CHAPTER-01

Effective Human Resource Training and Development Strategy

We Learn – A Continuous Learning Forum


Training an Overview

• Training if effectively managed achieves aims and objectives of an organization.

• Training is always job orientated for the development of the general culture of the company.

• Training is a process to improve aptitude skills and abilities of the employees to perform specific jobs.

• Due to rapid growth in technology fields there is a great need for training for updating skills of employees.

• To respond effectively to competition from rival business organization in house training is given to keep abreast with latest development in their field.



Present day role of training.

• Now a days training is a crucial element , a sound basis for modern day management at the micro level. It has an extensive role in –a) enhancing productivity.b) improving organizational functions.

At macro level it serves as an important agency to contribute to the economic and social progress of the country thus creating a need for large scale organized efforts to develop technical and enterprising skills in youth to make them productive units of society.



What is the need for Training of Personnel?

• Continuous management training is required to build up a strong effective , motivated and dedicated managerial cadre.

• In PEs training must shape the managers to understand the requirement of the employers in terms of organization and personal growth.

• It is essential for gaining competitive edge.• For imparting diverse skills and performance management

abilities to managers for effectiveness of business activities.• For enhancement of emotional and intelligent quotient in

managers.



TRAINING-SIGNIFICANT MEANINGS ATTRIBUTED TO EACH LETTER OF THE WORD.

T : -Talent and tenacity N:- NoveltiesR:- Reinforcement I ;- IntensityA:- Awareness N:- NurturingI:- Interest G:- GripA growing organization The gap between performance of must be in tune with the organization and the changingthe changing needs of needs of the society can be the society. reduced through proper training

of the employees by increasing their knowledge, skill, ability and attitude.We Learn – A Continuous Learning Forum


Definitions of training

• Training is defined to be a organized activity involving systematic procedures for transferring technical know how to the employees for increasing the knowledge and skills of the people for a definite purpose.

• Definition by Edwin B Flippo. The purpose of training is to achieve a change in the behavior of those trained to enable them to do their jobs better. It is equally necessary for the new as well as the old employees. Training is a continuous process to bring a positive change in1) Knowledge2) Skills 3) Attitude Of the workers Contd…



• John P. Jkenny and others (1979) defined training to help out an individual to learn how to carry out his present job satisfactorily.

• Edger H. Schein defined management development as a how an organization brings a change in an individual in a direction which organization regards to be in his own and organization’s best interests. Most importantly various training programs try to influence the managerial attitudes.



SCOPE OF TRAINING

• Lately the scope and application of training has widened to include positive behavioral changes, developing life skills leading to personal growth that helps to cope with day to day problems of living and manage interpersonal relations, and interpersonal effectiveness



OBJECTIVES

• Defining training objectives is a pre requisite of any training program.

• They may vary according to the requirements of a particular situation

• Objectives of any training program should indicate that at the end of training whatever knowledge , skills and attitudes that have been identified as necessary for effective work performance should be achieved

• In complex subject like management it is not easy to define training objectives in terms of performance measurable terms of specific objectives. Contd…



• Training objectives determine the details of design and provision which must include the people who design and provide training and the methods and locations that might be used in practice.

• Systematic methods are evolved for increasing the new employees knowledge and developing his skills and also giving core-training of its existing employees.

• Objectives are statement of intent written in clear ,specific and precise terms which specify what learners will be able to do at the end of each stage of learning process.

• Objectives are essential for validating the training.We Learn – A Continuous Learning Forum


Three elements of training objectives

1) Outcomes: This is the observable behavior required at the end of training.

2) Conditions : These are circumstances in which the outcomes should take place

3) Standards: The expected level of attainment in terms of quality, accuracy , quantity or whatever is relevant to the job.

4) p.s. Objectives should always be written to avoid mental manipulation.



Systematic Assessment of Training (SAT)

It defines training objectives as one system and the assessment of learning achievement and training effectiveness as another being totally interdependent.



Setting out the program objectives

This includes the following modules:

Understanding Program Objectives.

• Program objectives are broad statement of intent, action and outcomes which are the end result of the training.

• Learning Objectives express learning expected from a specific training activity, event or module.

• Program objectives are the aggregate of learning outcomes.• There are three broad areas of learning associated with

program objectives which reflects the changes that can come about in an individual as a result of training. They are :-



APPROACHES

Cognitive Learning: Focusing on acquisition of information and knowledge, including concepts ,theories and principles etc.Behavioral Learning: Developing competencies required for the actual performance of the job.Affective Learning: Also aimed at enhancing job performance by fostering appropriate attitudes and values. By helping individuals in better management of feelings, emotions and reactions to situations and people. These three area are interrelated resulting in all round development of an individual.



Need for setting Program Objectives

The need for setting program objectives are listed as follows:a) Provide Direction to the Program

Objectives define the direction of the program and indicate areas of emphasis.

b) Serve as a basis of Evaluation.Objectives facilitates the process of setting

standards of performance for the training team. Contd…



c) A Tool for Meeting Participants’ Training NeedsObjectives assist the participants in

establishing their personal learning objectives.

d) Define Limits for the ProgramObjectives also set out parameters for the

programs, the can do and cannot do’s.



Establishing program objectives-Consideration and guidelines.

Program objectives are established on the training needs. which needs to be identified. using appropriate methodology sound procedures and principles .Some of the points to keep in mind:

Program Objectives are Set Out from the Learner’s Perspective:The primary aim is to inform the participants of the learning they should expect to receive from the program.



Sample Program Objectives

Training Program: Leadership and its DevelopmentAt the end of the training program the participants will be able to :• Discuss and analyze the concept of and dynamics of

leadership and examine its application to the situation in their respective organizations.

• Illustrate various theories and models of leadership and appraise their relevance and validity to their job.

• Become aware of their leadership style and recognize the need for bringing about changes in accordance with the requirements of the job and the organization.



Training and education – As Approaches to Learning

The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment.• Training and development must contain an element of

education.• For this purpose organizations depute and encourage

employees to do courses on a part time basis in Institute of Public Enterprise, Business schools etc.

• Education is more important for managers and executives than for lower cadre workers.



Defining Training and Development

• Flippo defined training as the act of increasing the knowledge and skills of an employee for doing a particular job and prepare himself for higher level job.

• Training imparts the ability to detect and correct error.• It provides skills and abilities that may be called on in the

future to satisfy the organization’s human resource needs.• It may be carried out on the job off site or on site.• It may be given in a simulated environment that is similar to

work environment in important respects.• Trainees are expected to acquire abilities and knowledge that

will enable them to do their job more effectively.



Some Key Attributes of Training and Education


Training Education

Though training is concerned with the future of an individual , his past and present provide a crucial frame of reference.

Education is mainly directed towards the future of an individual and any reference to his past and present state is incidental.

The scope of training is limited, determined by training objectives. It is specific and highly structured. It has relatively short term perspective of the future of the individual.

Education is not targeted towards specific behavior. So it lacks the specificity of training. Education has a long term perspective of an individual’s life.




Training Education

Transfer of learning can be monitored and assessed. The organization and even the training agencies can exercise greater control on the process.

Difficult to monitor how the learning acquired by the individual is used by the individual. The educational institute has virtually no control over the situation and the circumstances of the individual.

Training has less emphasis on ideology and social values ,societal forces play a far less significant role than they do in education.

Education is firmly rooted in the culture of the society. Its key concern is the inculcation of socially accepted values in an individual.




Training Education

Social institutions like state , family and the community play an important role in the education of an individual.

In training the group comes together for a specific purpose and disperses after the program objectives are assumed to have been achieved.

In education, the group is more enduring and there is sustained interaction over a long period of time.


Training VS Development• Training is often referred to as teaching specific skills and behavior.• Development in contrast is more general and more oriented to

individual needs as well as organizational needs often aimed towards management people.

• Development is to provide knowledge and understanding to people to carry out functions such as problem solving , decision making related to people.

• Training is meant for operatives and development is meant for managers.

• Training improves specific skill whereas development aims in improving total personality of an individual.

• Training is a one shot deal whereas development is a continuous process. Contd… We Learn – A Continuous Learning Forum


• Training is the result of some outside motivation whereas development is the result of inside motivation

• Training seeks to meet the current requirement of the job, it is a reaction process whereas development is a proactive process.

Learning Training Development DimensionsWho Non managers managers What Technical mechanical Theoretical

operations conceptual ideasWhy Specific job related General knowledge

informationWhen Short term long term



Triggers of Training

Training programs is a stimulating process and should take off with enthusiastic participation.Some example of triggering are:1) CEOs initiative with a ceremony for introduction of new technology.2) HRD document with mission policy and action plan3) An incentive for fast learners4) A letter from the CEO on the subject to employees5) Publicity for skilled persons6) Shram Shakti awards7) Unveiling career plan for the newly trained people or new skill

base.8) Threat of lateral recruitment instead of internal promotions for

higher postsWe Learn – A Continuous Learning Forum


Benefits of training

Training offers innumerable benefits both to employees and employers.Tips for Trainees on how to benefit from business seminars.• Plan your schedule ahead of time• Make sure what your company would like you to learn from

the seminar.• Learn about the proper attire for the seminar• Network at the seminar. Bring business cards• Meet people before each session and break the ice by making

useful conversation. Introduce yourself to the presenter.• Bring back information to the company by either making a oral

presentation or written reportWe Learn – A Continuous Learning Forum


Benefits of training to a company

The major benefits are:

1) Increased productivity

2) Improved morale

3) Reduced supervision

4) Reduced accidents

5) Increase organizational stabilityWe Learn – A Continuous Learning Forum


Benefits of Training to the employee• Training makes employee more useful hence he will find

employment more easily.• Training makes employee s more efficient and effective.• Training helps them to secure promotions easily and realize their

career goals.• Training helps an employee to move from one company to the other

easily. He can be more mobile and pursue career goals easily.• Employees can avoid mistakes, accidents on the job thus handle job

with more confidence, be more satisfied and would have high morale.

• It helps employees to cope with organizational , social and technological change. It is an invaluable investment in human resource of an organization.



Benefits of Training to the Business

• Wastage is eliminated to a large extent as workers work more effectively.

• There are fewer accidents. As trained workers have improved knowledge of use and handling of machines.

• Workers turn out better quality goods• Training makes workers more loyal to the

organization as they will have more growth opportunities.



Current Training and Development Practices, National Perspective

• World bank has given a warning signal that by the turn of this century India will have nearly three fourth of world’s illiterate population. We have to convert this human resource as an asset through formal, informal and non formal education involving training and retraining.

• On analysis of the present day training programs in the country are quite inadequate. Public sectors have training programs with employee development approach whereas private sectors have only development of the organization in mind.

• Though most of the Public Sectors have taken up HRD in a big way but so far private sectors have been having half hearted efforts so far. Recent globalization and new economic policies have brought changes , they are also opening up training centers, even universities.

Contd...We Learn – A Continuous Learning Forum


• The essence of training is to meet the future requirement of the organization where as development helps the individual to handle future responsibilities other than the concerns of the present job.

• The concept of HRD is already established in successful organizations in the form of HR planning, recruitment and selection, training and development personnel and administrative policies, planning and implementation , career counseling, industrial relation etc. These are managed by the professionals in HR from a holistic viewpoint, throwing up creative solutions which were previously not thought of.

• Today’s tragic truth is the rapid rate of obsolescence of skills. Thus retraining and development of millions of workers for alternative careers is a crucial area. Training is essential both to workers and supervisors and managers to improve their skills and performance.



• The shift from planned economy to market economy has raised consumerism and up gradation of technology.

• Introduction to computers needed retraining and redeployment of employees.

• The New Industrial policy of 1991 brought about many structural changes. The Indian economy has switched from domestic to global market.

• To have competitive edge, Indian industries had to improve quality and meet the national challenge of training and deployment.

• All public enterprise need to have well trained and experienced people.

• In a rapidly changing society in order to maintain a viable and knowledgeable work force, organization must commit resources to training.z



HRD in Public Sectors

• Public sectors contribute most to the national economy so they need to improve their efficiency.

• The reward and promotional system based on time bound scale rather than merit basis defeats the basic concept of HRD process in these sectors.

• Though there are a number of central and state level institutions conducting HRD programs for civil administrative and public sector organizations but much more is yet to be done.

• HRD can be hall mark of public sector automatically improving the quality of work and productivity if the objectives are clearly defined and goals are achieved.

• The economic consideration will have to be given more weightage to dilute politicians’ dominations .



Role of HRD in Economic Development

• Competencies and behavior are major factors in the economic growth of the country

• Structural changes in Indian economy is dominated by its population and their contribution.

• As population growth , human resource development and economic development are interrelated by implementing HRD policies a change in GNP can be noticed.

• Only an educated and developed population can become best human capital and help in National Economic growth.



HRD in Private Enterprises• The private sector is on the growth path in India and has to move

from old economy to new economy where owners and employees are subordinated by the enterprise.

• They are going for employee stock ownership scheme ,greater representation of the employees on the board .

• In order to meet the modern day challenges big business houses have set up their own business schools and management academy’s like Tata Management training center, Reliance Management Academy etc.

• Though there is technology boom in India there is a gap in setting up technical management institutes.

• The private sector cannot make any meaningful beginning on the management development unless it starts developing existing personnel.



HRD in Banking• Banks are key sectors of national economy and are important public

sector enterprise.• Being in service sector Banks realize the importance of HRD and they

do have brain storming sessions , idea banks at zonal centers• Human values are given greater importance.• They have schemes for career planning management development

process by rotation of staff, open and planned appraisal systems.• In their HRD programs due importance is given to interpersonal skill

development and analysis of consumer behavior.• On the job class room , optimization of available staff, continued

education and vocational training are some good features of HRD plans.



Problems in Training

• Despite setting up institutes various problems in respects of training have surfaced from time to time .

• Questions of appropriate organizations model , training mix , faculty composition, and methodology of evaluation are some areas of trouble.

• Adequacy of training budgets, interface of training objectives with the other functionaries in the organization are some thorny issues.

• To address such problems a concerted research is initiated on the functioning of in house training departments in PEs to assess their performance.



International Perspective: The Singapore Training Experience

• Singapore is the best prototype of a nation that has successfully up skilled its work force over the last 40 years.

• Worlds Economic Forum has rated its labor force 1stin terms of computer literacy and 2ndin terms of worker motivation and availability of skilled work force.

• Its education system meets the needs of a competitive economy .• Singapore is ranked 1stamongst all developing nations in terms of

number of human resource dimensions.• On education standards, comparing scores in maths and science

Singapore is ranked 1st.• On both educational and training dimensions or national human

resource development they have excellent achievements.We Learn – A Continuous Learning Forum


Factors contributing to the success of Singaporean Skills –development system.

• The linkage between Skills Development and economic development.

• The EDB’s Evolving model of Technology Transfer, Foreign Investment and Skills Development

• Skills Development Fund

• Long term skills Development Education Policy. contd..



Skills Development Fund

• SDF is the institution that has been touted as model for other countries.

• Employers have to contribute 1% of the gross salary of each employee earning less than 1000 Singapore dollars /month to the SDF.

• Companies can get upto80% of its contribution back if they apply to the SDF for grants for training and skills enhancement.

• It is a way to induce companies to continuously invest in skills up gradation and it penalizes companies which persists in using low-skilled-workers in low-value-added operations by increasing their labor costs.

Contd...We Learn – A Continuous Learning Forum


• The employers who submit a Total Training Plan affecting atleast50% of their work force would be awarded with higher grants and subsidies from the SDF.

• Grants are typically awarded to companies to use the funds for training programs necessary to enhance the expertise of the workers.

• The objective of the training program should be consistent with Singapore’s new economic strategy and direction.

• Special incentives are provided to companies to train older workers aged 40 and above, to train women to get back to workforce, for basic education etc.

• On both education and training dimensions or national human resource development Singapore’s achievements are excellent.



The United States Training Scene• The Training and educational systems of Germany and Japan are far

more consistent than that of USA.• In USA company sponsored training focuses on managers and

technicians; the quality tends to vary widely.• Germany is best known for its outstanding apprenticeship program.• On the other hand while comparing USA’s training scene with

Japan .it is found that Japan boasts having one of the best primary and secondary educational systems in the world.

• Once employed Japanese workers receive extensive ongoing , company sponsored training.

• Workers in Japanese automobile plants average 90 hours of training whereas workers in US Automobile plants average about 30 hrs of training annually. Contd.. We Learn – A Continuous Learning Forum


• Canada’s training and education system is quite similar to US.

• Primary , secondary as well as vocational education system varies greatly in terms of quality . Companies provide as much as half of training that is given in US.

• Compared to USA in Korea though there is a strong primary and secondary school system as well as vocational education , but company sponsored training programs are scarce and poor in quality.

• Thus we see that in US training and education programs can be improved to have more effectiveness to greatly affect country’s ability to compete globally.



Japanese Training Scene

• Employers in Japan are well regarded for their significant and long term commitment to developing skills of their workers perhaps more than any other industrialized nation.

• Employee development is the key factor in Japan’s economic advantage over US and other countries.

• In spite of a lengthy economic recession a decade later Japan’s commitment to worker training remained unshaken and superior to practices elsewhere.

• Skill development remains at the very heart of Japanese business. Contd… We Learn – A Continuous Learning Forum


Japanese Training Scene, Expenditures

• Japanese respondents reported a slower rate of growth in training expenditure.

• Training investment figures are significantly lower in almost all major respects than those from other regions as shown:


Japan Canada Europe US

Training expenditure per employee.

$390 $530 $960 $650

Training expenditure as a percentage of pay roll.

1% 1.5% 3% 1.8%


Japanese Training Scene, Non-financial measures

• In this there are significant differences between Japanese participants and those in other countries.


Japan Canada Europe US

Average employee to trainer ratio

1700:1 <400:1 <400:1 <400:1

Percentage of employees received training in 2000.

45% 69% 69% 75%


Japanese Training Scene, Delivery , Evaluation and Resources

• Training in Japan is evaluated and delivered differently.• All regions reported that most training was delivered in an instructor –led

classroom, 10% of training used a variety of learning technologies. The comparable percentage of classes delivered via learning technologies in Japan was just 1%.

• Japanese organizations were less likely to use evaluation methods other than Kirkpatrick’s level1 ( reaction) evaluations.

• Resources• The distribution of training costs, such as wages and salaries of the training

staff and tuition reimbursements, was similar to that in other regions. Japanese expenditures on outside providers were also in line with other regions, at just under one third of the total.



Japanese Training Scene : Innovative practices

• Japanese employers use innovative training and work practices similar to others around the globe.

• The number of Japanese organizations providing :• Apprenticeship programs Coaching programs• Training information systems Employee involvement• Access to key business information is very similar to those in other

regions.• In other aspects of workspace learning and performance Japanese

firms led much of the world.• Japanese firms compensated employees on the basis of overall

organizational performance . They practice gain sharing, profit sharing

• Employee stock ownership plans were twice as common in Japan.



Japanese Training Scene: Cultural due diligence

• Data says that the training methods in Japan are quite different from those in rest of the world.

• The apparent direction of disparity between Japan and other countries is surprising. Being the recognized world leader in workplace training and development it is anticipated that most of the measures would be higher –not lower than those of other countries.

• The true nature of unique training system that prevails in Japan depends on the some important ways that may affect direct comparison. They are1) Lifetime employment.2) A holistic approach to Development.3) The Technology Angle. Contd..



Japanese Training Scene, Lifetime Employment

• Japanese companies place great importance on the concept of lifetime employment.

• On entering work Japanese workers must evaluate their employers carefully as they get few opportunities to work elsewhere.

• Lifetime employment creates a unique context for the skill development and learning opportunities.

• Employers in Japan do not have to worry making substantial investments in employees who might walk out before they recoup the cost.

• Japanese firms take a long term approach to developing their employees.



Japanese Training Scene; A Holistic Approach to Development

• Japanese firms provide a full development process which also includes short training events .

• Employee learning in Japan can either be planned or unplanned , formal or informal.

• They can be further subdivided into on the job or off the job leaning.

• Off-the-job formal learning is called training which is classroom based, instructor –led.

• The three primary ways of employee learning in Japanese firms are: Off-the-job formal learning

On-the-job informal learningOff-the-job informal learning.



Japanese Training Scene, A Holistic Approach to Development

• Most of what US employees learn occurs informally during activities as team and customer interactions, meetings, cross-training and shift changes.

• Employees of Japanese firms obtain much of their learning informally, their proportion is substantially smaller than that of US figured at 90%.

• Sizable % of Japanese worker training happens as formal, structured , on the job learning. This is missing from US.

• According to 1998 Measurement Kit following is the statistics of Japanese employment training.:

–Informal 40% , Formal on-the-job learning 39% and Formal off-the –job learning 21%



Japanese Training Scene, The Technology Angle

• Japanese firms differ from others in their use of learning technologies to deliver training.

• Japanese firms engage in the use of non-electronic, self paced delivery methods more frequently

• Most distance learning in Japan occurs through the mail ( correspondence courses) rather than online.

• They rely less on learning technologies than rest of the world.• Small amount of formal off-the-job training in Japan creates fewer

opportunities to use learning technologies like IT training.• In Japan the use of In US the use of CD-ROM is 24% CD-ROM is 49 E-mail is 25% E-mail is 34% Company internet 8% Company internet 24%



Strategies for Effective Human Resource Training and Development in 21st. Century

• The main focus is how to link HR with business strategies.• The corporate training must be understood in terms of

paradigm shift that is taking place in Indian Industry.• Three factors have added new dimension to the need for

training in all industries , they are 1) Liberalization2) Imbalance in demand and supply of professional talent3) Growing expectation of employees regarding their

professional and personal development. • Training is an effort into immediate position while

development is an effort directed towards growth.We Learn – A Continuous Learning Forum


Classifying Employees for training

BCG matrix can be applied to human resource portfolio.The two by two grid gives four types of employees.1) Dead Wood: Employees in this category are incompetent,

unsatisfactory and wholly unsuitable occupants of their present positions; have low potential for growth.

2) Work horses: These people have reached their peak of performance in the light of definitely limited capacity.

3) Stars: These are people of high potential who are performing at the highest quadrant of the potential.

4) Problem Children: These people have great potential and genuine capacities but are working below that capacity or only with mixed results. Sometimes they divert their energy to make mischief and misuse their talents.



A Model for creating a Training and Development Strategy


MissionVision, Values & long term goals

Specific Drivers Proactive

Business StrategiesBusiness Goals

Organization andMan power plansChange initiative

Values and beliefs in people development

Maintaining care

competencies

Specific Drivers (Reactive)

OperationalIssues

Individual needsTerms needs

External changes

Training & Development

Strategy

Belief Policies



The principle of the model is simple and there are three categories of the business factors that our strategies should contain. The 1st set of drivers are more or less permanent for the organization. First will be the mission , vision and the values of the organization.Secondly there will be set of values relating specifically to people development.Thirdly there is a need to maintain and enhance the core competencies of the organization. Contd…




Though many organizations could not explain their strategy but would produce various documents describing thing that they do in HRD.The information required for making personal plan s is required to a great extent for the training plan.The next step in the training process is analyzing training needs,This is done at organizational, group and individual levels.A number of different methods and models conducting needs analysis have evolved over time.All these process gives the gap between demand and the supply.



A Model for creating a Training and Development Strategy –Assessment methods

Training needs may be analyzed by the following assessment methods1) Observation2) Consultation key3) Print media4) Study of job description / specification5) Appointing external consultants6) Performance appraisals7) Special questionnaire/ surveys8) Skill gap analysis, or9) Interviews with supervisors /peers10) Self assessmentThe methods chosen differ with the level of need assessment, that is whether it is at the organizational level, group level or individual level.



Issues involved with Training Needs Assessment

1) Determining felt needs Vs real needs.2) Balancing organizational needs with the individual needs.3) Reducing individual anxiety about being evaluated-overcoming

reluctance.4) Establishing a two way communication in tradionally one –way

communication.5) Shielding top management from unpleasant data and shielding

employees from hidden concerns of top management.6) Erroneous interpretation of surveys results.7) Ethics for probing for personal information about attitudes and

personal goals.8) Extra time required to collect additional data required to design

program; Contd... We Learn – A Continuous Learning Forum


The next step is the selection of trainees which must have a strategy. To determine the obvious target group.

All training cannot be important in one go and it is generally spread over a time often stretching a long period on a rolling plan basis. An important variable for success of training activity is the motivation of the trainee to acquire skills , knowledge and abilities.

Motivation can be related to rewards, succession plan and promotion.



BenchmarkingBenchmarking with the other organizations will be a valuable exercise and can be done on number of fronts:

How do we compare in terms of our beliefs and philosophies?

How do we compare in terms of efficiency?

How well do we link our activities into the business priorities?

How do we compare in terms of achievement of key goals?

Some other question might cover:Level of involvement in strategy.Methodologies for linking business goals to learning goalsThe value placed on training as a support of business change.Beliefs and principles. Contd…



Needs Analysis process.

Line manager involvement.Range of learning methods used.Uses of accreditation and management education.Roles and skills in HRD staff.

Evaluation methods and resultsOrganizational learning and knowledge management.All bench marking should have clear focused objectives so that it does not result in masses of data that cannot lead to much action.

Where should we carry our activities?There are two options:Own premises.External facilities. Contd…



Own premises

Premises cost -rent or ownership cost, utilities, services

Equipment purchases and depreciation.

Catering costs.

Travel for company delegates.

Extent of subsidy obtainable through external revenues by allowing others to use the facility.

Facilities management cost and time.We Learn – A Continuous Learning Forum


External Facilities

Delegates day rate including all –in room hire and meals.Special equipment hireTravel for company delegatesTravel and accommodation for training staff.As every organizations situation will be different ,one cannot predict any general outcome of such calculationsFor large amount of standard training, economics will likely swing in favor of ‘dedicated site.’Standard training course is not very effective way of learning.The HRDM needs to have a overall control of the resource to have the right balance.A good cost comparison brings in the necessary factors. The way to do it is to zero-base all the training that is done.



Funding Strategies

Money is the most critical resource needed. Money can be resourced frominternally from the organization externally from bodies with funds. It can also be procured from external revenue generating activities from internal resources.

External revenue can come from:Letting out facilities –utilizing spare capacities and maximizing the return on mixed costs.Selling places on internal training courses –this is commonly done on technical courses, or routine skill courses or whenever open discussion on the organization is needed. Contd...



Providing external client consultancy –Utilizing spare capacity of learning consultants or trainers on external client opportunities.

Licensing training methodologies or selling materials –where these are not deemed to be of competitive advantage.

Providing HRD services to other organizations –‘in sourcing’–utilizing fixed costs and resource to provide service to other organization as well as the home base.



Should any of HRD be outsourced?Some organizations have a general policy of not investing management time and effort in anything other than their core business. Then the HRD activity is given totally to the service provider and monitored against performance criteria.The arguments on each side in respect of HRD department are:

FOR AgainstReduced direct overhead cost. Lack of commitment toReduced management attention. Organizational goalsAbility to control Lack of long term ownership criteria.Ability of wider range of skills Degrees of freedom in controlling performance.

Risk in lack of continuity of key skills.



Different methods of training adopted by trainers.

The most popular method is lecture method as it is easiest in the long run.Case studies, buzz groups , brainstorming , business games simulation etc requires innovation and is usually adopted from other countries. Computer based training (CBT) and internet based training are fairly close to program learning and goes at its own pace and moves from one step to the other. It uses computers, videodiscs, floppy, touch screens, browsing the net etc.Simulation programs can also be developed in case of maintenance, planning , process work, sales and marketing.Training can be conducted on–the-job or off-the-job. The off-the-job can be in house or external training.

Contd..



The on-the-job training is through counseling ,coaching and guidance and has more advantages than other methods. This shapes the attitude to machine, materials procedures etc. Culture of coaching and guiding is important by the superiors who are held accountable for the development of the subordinates.

In case of in-house off-the –job training. Trainers can be insiders, outsider or a combination. The advantages of having as faculty are:

They can relate to the company situation far better they develop faith in training being a part of it, and

The preparation and actual instruction contributes to self developmentThe major requirement is to teach company employees

methods of training to make their efforts effective.We Learn – A Continuous Learning Forum


Strategies for Business Process Outsourcing training

Outsourcing the entire training function is a huge change that when handled properly can yield improved services and decreased costs.Due to economic pressure companies are turning to total outsourcing of HR functions.Training is a perfect candidate for BPO as a function , as it is administrative and it is not seen as a revenue producer.Outsourcing all training means comprehensive , end-to-end outsourcing of the management function to the design ,delivery and reporting.The success of outsourcing will depend on company’s motivation, its industry, the type of training and how the process is managed.

Contd…



The Benefits:

Produce Cost Savings: The potential for cost saving is the initial reason for most companies opting for outsourcing. This cost reduction is through consolidation of services, reengineering of processes, automation of administration and delivery etc. By outsourcing training companies can save 30 to 40 % of their training costs.

Deliver high quality, efficient services and products: By outsourcing training companies can focus resources on improving their products.

Provide cutting-edge technology: Another benefit of this narrow focus is that the BPO provider stays on the cutting edge.

Expand global training capabilities. One reason is the access to global distribution and call centre services 24/5. It also helps to quickly respond to new markets in new countries and meet language requirements. Contd..



Who should outsource?

According to the Institute of Public Enterprise(IPE), some companies are better suited to outsourcing than others. Currently non durable –goods manufacturers such as food processing , chemicals and plastics companies are outsourcing training most often. Financial and insurance companies are outsourcing training the least. Industries with a lot of compliance training are prime candidates for outsourcing; examples pharmaceuticals and technology manufacturing Companies in highly cyclical industries such as high tech consider outsourcing because in house training makes it difficult to respond to economic conditions.Companies with a lot of industry –generic training like safety training are great opportunity for outsourcing.Companies with a high degree of proprietary content in their training or training that is very customized to the learners are not good targets for outsourcing services.

Contd..We Learn – A Continuous Learning Forum


Another deciding factor may be the target audience. Sometimes outsources are educating not only employees but customers as well.

Performing a cost-benefit analysis helps to decide whether outsourcing is right for the company. This is done by considering long term and short term costs of continuing to provide in-house training solutions vs using a outside firm.

It is important to make the right choice as it is nearly impossible to bring training back in-house.



The Marriage:Experts differ as to whether it is better to partner with an outsourcing company that specializes in training or one with which you can bundle the rest of the HR functions.Today the trend is to bundle many of the human resources functions together ( including training)and outsource them to a single provider.There is a fundamental difference between HR outsourcing and learning outsourcing. Hr outsourcing tends to focus on transactional processing such as payroll and HRIS.Outsourcing the training function is more than just outsourcing transactional tasks. Training concerns the intellectual value of a company.Making the right decision is imperative as contracts typically last for five to ten years. And it can be difficult to change partners.The vendor must have experience in your requirements; and needs to possess the necessary technical and technological capabilities.Company and outsource employees will be working side by side for years.It is important to look for a partner with appropriate course ware, size and infra structure to support training needs effectively.Given the relative immaturity of the learning BPO industry ,extensive client experience is hard to find. Contd..



HR’snew strategic role:

Outsourcing the training function dramatically changes the HR department, this change is for the better. Training roles will be more strategic. There will be partner management role, or a liaison to the outsourcing company.

It helps the HR executive to focus on strategic activities and curriculum design, To drive and define what type of learning and skill set employees need to be successful and ask the outsource partner to create suitable learning products.

The success indicator is when employees do not realize training has been completely outsourced.

The goal is to deliver high quality training at a reasonable price without losing the personal touch of in-house training. The need is to pay attention to the trend of outsourcing training; to look ways to improve your value and decrease costs.



Core competencies: From training for functional skills to learning in Indian Organization

Abstract: Most current human resource development approaches and techniques are unsuitable for developing core competencies of knowledge workers in competitive firms today.In today’s knowledge organization the traditional model of expertise development is challenged and the new directions are presented.IPE presents a framework of decision-making in firms for the development of the employees from entry level skills to functional skills, and from there to cross-functional and integrative and creative competencies.Indian Organizations are yet to recognize the creative and durable contribution of knowledge workers and invest in them as a matter of strategic concern for business.



Learning through experience :

Learning occurs in both deliberative and incidental modes.The performance of a task often results in incidental learning that has its effect in and beyond the immediate learning environment.Exploring how learning may occur without intention , and awareness is of great relevance to understanding the process of learning tacit knowledge; which have implication for on-the-job training and mentoring programs. An important part of many skills is sequencing of ordering stimuli and responses.Due to the importance of human performance ,the manner and the extent to which sequential structure is learned has been a focus of much research.Most recent investigations of sequence learning have been carried out using choice-reaction tasks in which a single stimulus is presented in each trial, and the task is to make an assigned response based on the identity of that stimulus.

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The most basic finding is a larger practice effect for repeated stimulus sequences as compared to stimuli presented in random order-even though the performers are not told of the existence of the sequence or to try rouse sequential constraints among stimuli.Although the sequence learning exhibited in choice reaction tasks appears to occur in the absence of instruction to look for or use sequential constraints, this does not mean that the performer is unaware of what had been learned.To determine whether knowledge that is evident in implicit measures of learning derived from task performance are also evident in explicit measures of learning obtained from tests of conscious recollection.To evaluate better whether awareness of the sequence is necessary requirement for obtaining the performance benefit of the repeated sequence, experiments were carried on patients suffering from amnesia . The results indicated such learning can occur without awareness.



Expertise and knowledge creation

While expertise draws on knowledge on one hand , it creates knowledge on the other hand.Explicit knowledge or coded knowledge ,as a body of organized information can be understood at three levels. These are:

Shallow level ( presenting data in a organized order to provide information in response to the question ‘what is out there?’)

Deeper level of understanding ( information is organized to deal with the question ‘why?’: this looks for explanation of phenomena. The analysis of information deals with reasoning, cause-effect analysis, existing knowledge)

Further deeper ,one examines “how’ such analysis was made and pays attention to reliability ,validity and tenability of explanations by replicating the analysis previously undertaken.Nonaka & Takeuchi (1995) addressed the issue of tacit vs coded knowledge and raised the importance of tacit knowledge in human endeavors. Contd…



They observed tacit knowledge as experiential, practical and simultaneous and therefore ’subjective’ compared to ‘objective’ explicit or coded knowledge.Complementary relations between two types of knowledge exists and a model of knowledge conversion is based on ‘social’ interaction between tacit and coded knowledge.Nonaka& Takeuchi postulated four different models of knowledge conversion.:1.Socialization: Where experiences create knowledge.2.Externalization: A process of articulating tacit knowledge to explicit concepts. Typically concept creation is triggered by dialogue or collective reflection.3.Combination: A process of systemizing concepts into knowledge system. Individuals exchange and combine knowledge through documents, meetings etc. by way of sorting, categorizing etc. Leading to new knowledge. This takes place in formal education and training.4.Internalization:A process embodying explicit knowledge into tacit knowledge, closely related to learning by doing. Contd..



The role of organization in the process of organization knowledge creation is to provide the proper context for facilitating group activities as well as the creation and accumulation of knowledge at the individual level.

The essence lies in developing the organizational capability to acquire, create ,accumulate and exploit knowledge which can be represented as a knowledge spiral which shows circular movement between the fur modes of knowledge conversion.

This is done by the way of linking explicit knowledge ,learning by doing, field building and dialogue.

The most critical element of corporate strategy is to conceptualize a visual about what kind of knowledge should be developed and to operationalize it into a management system for implementation.

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Training is a line management responsibility.

The immediate superior at any level in an organization exercises far more potent influence, for good or ill, upon the development of his subordinates. It is he who dispenses rewards and punishments, provides patterns of leadership, creates the climate within the working group and structures the tasks necessary to accomplish objectives.

He is the one who can recognize the need for specialist advice. In future the training officer will become much more of an internal consultant to management.

The trainer will act as a catalyst adviser to the working group, for his qualities of judgment and insight as of his specialized knowledge of training techniques. Contd..



There should be a conscious determination to involve managers at every stage in the training process and encourage them to implement their training responsibilities as an integral part of their management of the people.

There is no substitute for a challenging job –one which fully extends a managers capabilities and provide him with the opportunities to develop himself.

It is the boss’s responsibility to grasp the opportunities . A persistent encouragement of self help and self reliance on the part of the managers is needed.


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