Training & Development - Abu Dhabi National Oil Company - Assignment Example

Running Head: Training and Development Name ID Number Course Instructor Title Abstract As the operational environment changes, there is need for organizations to adapt to these trends. Unlike in the past, organizations are moving towards globalization in a quest to increase their profitability. Many employees in various organizations are currently undergoing training in a bid to curb these changes. Many scholars have argued based on their research studies that there is a direct correlation between employee training and the performance of an organization. To better understand the effects of training on an organization, this report will investigate types of training methods and existing relationship between training and general organizational performance, and how training of workers has affected Abu Dhabi National Oil Company. The company is an epitome in undertaking an initiative to develop employees through training. Therefore, initiatives taken by this company will be the subject of discussion in this report. It also puts forward some important parameters that can help human resource managers to draw up an effective training practice. Table of Contents Table of Contents 3 1.0 Introduction 4 2.0 Training and Development 5 2.1 Types of Training Methods 7 2.2 ADNOC in regards to Training and Development 9 3.0 Conclusion 11 4.0 References 12 1.0 Introduction Abu Dhabi National Oil Company is an organization in the Middle East consisting of a group of companies. These groups of companies are distributed throughout the entire Middle East region. In order to survive the competition within various operational regions, the company has focused on developing employee skills through training. Middle East is known for high dependence on oil and its products. There are scores of companies dealing in oil products. For this reason, competition is very high for companies such as ADNOC operating on such products. To counteract high competition, such organizations need to develop human resource capital through training. The performance of an organization such as ADNOC depends on the performance of its workers and how their skills have been developed by the company. Similarly, organizational performance affects organizational growth. Currently, training is an important facet of business operations. It has been argued by many scholars that it increases employee effectiveness and efficiency. Shaw (2013) has argued that companies can benefit extensively by training their employees owing to the fact that well trained workers bolster the productivity and proceeds of an organization. Workers who receive constant training are better performing compared to those who do not receive any training at all. Training has an effect on skills and capabilities of employees. The performance of a worker is dependent on factors such as skills and job satisfaction. Therefore, training, employee development and organizational development are three concepts which cannot be separated from each other. Many researchers have argued in support of the fact that training positively affects organizational performance. Despite the fact that they talk more about organizational performance, its results and effects, less has been done in terms of putting it into practice (Kaufman, 2006). Some employers have applied this concept and benefited extensively from it. ADNOC provides a good example of such companies that have benefited from training and development of its employees. 2.0 Training and Development Perhaps, the best way to examine this crucial factor of an organization is by first defining these two terms. Many scholars have put forward their personal definitions of the terms ‘training’ and ‘development’. Despite the fact that they define using different words, they all revolve around one ideology. Salvi, (2013) has simply defined training as an educational process in which people learn new information, re-learn and reinforce what they already have. In addition to this, training gives an opportunity to workers to reflect on other options that are helpful in bolstering effectiveness in work. Training is of great importance because of the fact that it enhances upward mobility at the same time helping employees adapt to changes in technology. There are many other writers who have contributed in defining the term ‘training’. Their definitions are related to Salvi’s. Training has been found to impact an organization in two ways. A more direct effect of training is boosting organizational performance through development of employee skills for service delivery. A rather indirect effect is staff retention. If the employees are satisfied with what they are being offered by an organization, their retention levels rise. It can therefore be argued that training offers motivation to workers. Workers in any organization need attention from their administrators. Training is an indication to them that the organization is concerned with them. Shaw, (2013) points out the fact that training increases employee morale and loyalty to the organization. If workers strongly belief that they are being offered outstanding training, there are less chances of them exiting. In the same way, Donald, (2009) has argued in support of Angelo Kiniki and Robert Kreitner’s idea of “Pygmalion Effect” of training. Increased expectations among the employees will lead to increased output. Research has shown that workers who receive consistent feedback, training and increased expectations are likely to deliver best (Donald, 2009). From these, it is quite clear that training has direct and indirect benefits to an organization. Similarly, development has been defined by various scholars using different wordings but the fact remains the same that they all revolve around the same ideology. Salvi, (2013) has defined development as that process that seeks to build the capacity to attain and uphold the acquired state benefiting an organization. In essence, organizational development simply means creating and maintaining change. Development is in two realms; organizational and employee. Employee development results to organizational development. Looking into the terms; training and development clearly, there is a relationship between the two. As earlier stated, the two concepts cannot be separated from each other. In fact, one factor leads to the emergence of the other; training results to organizational development. However, the magnitude of development is dependent on how a training program has been designed and implemented. McKay (2013) posits that training programs can have multiple benefits to an organization if it is carefully designed and implemented in the right way. For a manager to create a good training program, there are some factors that he or she has to have in mind. They include; job functions, goals, clear understanding of the policies, and philosophy of the organization leading to enhanced motivation, morale and current productivity of the employees (McKay, 2013). Training is a step wise process progressing from defining company needs and goals to the implementation stage. Much has been done in regards to the effects of training on the performance of an organization. Many writers have acknowledged the importance of training for any organization. Human capital is a crucial resource for any organization that needs to granted substantial attention. Training helps in ensuring adequate supply of technically and socially competent staff (Laing, 2009: 8). Employee development and training is more evident currently owing to the fact that there has been a tremendous technological growth and a shifting business climate. Al Khayyat & Elgamal (1997) points out the fact that training and development helps an organization to be flexible and adaptable to these changes in business climate. Organizational managers need to focus on developing knowledge, skills and opinions necessary in job performance. Therefore, training generally examines these three facets of job performance. There has always been a misconception about worker development. It is for this reason that most managers fail to design an effective training program necessary for the development of employees. Most administrators mistake employee development with all day long group training sessions (Donald, 2009). However, the reality is that employee development can be exhibited in various methods of training, assessment, instructive programs and responses. The effectiveness of an employee development program is dependent on how it has been designed and executed. Employee performance encourages growth of an organization and also within the worker itself (Donald, 2009). 2.1 Types of Training Methods There are different types of training methods that can be used by managers. The choice depends on the line of work that needs employee training (Calvin, 2010). Some methods work best on certain jobs while others do not. It is therefore a good idea to examine different methods of training that are available and choose what is best for the identified line of work. Various types of training methods have been placed in two broad categories; on-the-job training and off-the-job training. Each category has different methods of training. On-the-job training involves those training activities where employees receive training at place of work (Riley, 2012). They include; demonstration or instruction, apprentice and mentoring, job rotation and projects. Job rotation involves reassigning employees to perform tasks periodically. As the worker rotates, he or she gains understanding about performing each of these tasks (Riley, 2012). Apprentice involves training employees in classrooms. This can take place for a considerable period. In mentoring, an employee is provided with a mentor who must be an experienced individual to provide job-related skills. This method is being adopted most by many organizations owing to the fact that feedback is instant and is cost effective. Projects on the other hand involve employees joining a project team that exposes them to various activities and parts of an organization (Riley, 2012). The success of a project team depends on how the management has integrated members in a team. Engaging members from multiple disciplines is likely to give better results. Demonstration involves guiding an employee on how to perform a task (Robert, 2011 & Riley, 2012). As an experienced person demonstrates, the employee learns from it. Off-the-job training occurs away from employees’ place of work (Riley, 2012). The common methods include; computer-based training, evening classes and day release. Computer-based training involves presentation of information to the employees with the help of a simulation (Riley, 2012). Owing to the fact that this type of training method is isolated, it has advantages and disadvantages (Robert, 2011). Some employees gain most from isolated training while others gain most from group training. With evening classes’ method of training, workers are trained after job. Day release method involves the employee taking an off to attend a training program (Riley, 2012). There are other off-the-job training methods that can be used by management to accomplish training. They include; block release courses, sponsored higher education courses and sandwich courses. All these training methods occur away from place of work. An administrator ought to determine which method fits the line of work he or she wants to implement training. 2.2 ADNOC in regards to Training and Development Since initiation in March 1979 on Abu Dhabi, the company has focused on professional development of its employees. It is a government owned company. To them, it is their corporate social responsibility of the company to foster continuous growth and development of its employees (ADNOC, 2013). Therefore, it attempts to make and uphold a learning setting within the organization. Employees are constantly trained throughout their career to heighten their competencies necessary for the success of the company. Outstanding training programs which are either done within or outside the company are offered to employees (ADNOC, 2013). These training programs are offered at diverse stages based on competency of an employee. Formal training sessions are organized for the employees periodically. These training sessions’ help in supplementing experience acquired while working (ADNOC, 2013). Other employee development programs include on-the-job instruction, rotation with partner companies and formal classroom training sessions. The main objective of this company offering on-the-job training to its workers is to maintain pace with the continuously changing work environment presented to employees (ADNOC). In essence, the company is trying to adapt to changes posed by competition and other factors such as environmental concerns. Health safety and environment training is a part of training program offered to employees. Between the year 2000 and 2004, the company has recorded a considerable increase in these training programs (ADNOC, 2004: 26). The company has realized the importance of developing highly qualified and committed staff, and it achieves this through development of comprehensive training programs (ADNOC, 2004: 35). Through the company’s competence management system (CAMS), it has been successful in appreciating the demand for competent staff than before. Competence has been the subject owing to justification of safety, efficiency, reputation and increasing technical complexity (ADNOC, 2004: 35). As a commitment to develop its human capital before employment, ADNOC has established training institutions. ADNOC Technical Institute (ATI) is a good example of such training institutions. ‘It was established in 1978 by ADNOC and group of companies to offer training programs for UAE Nationals with potential for upward mobility’ (ADNOC (ATI)). Since inception, this institute has been successful in training many technical staff who can work in different sectors of oil industry. The institute work together with ADNOC and its group of companies in collaboration. Trainees are offered job instructional training by ADNOC and its group of companies (ADNOC (ATI)). This institute mainly train newly employed workers before they begin their jobs. Employees trained by this institute work for ADNOC and its group of companies. ADNOC scholarship program is also a good example of the companies’ commitment to develop its human capital right from their school. This program was established in 1974 by ADNOC to help UAE nationals meet their goals and meet the needs of the oil company (ADNOC Scholarship Program). The scholarship program applies for undergraduate and postgraduate individuals. The objective of this program is to prepare a highly professional team to work for the oil industry in a more specialized and competitive way (ADNOC Scholarship Program). There other programs that have been established by ADNOC to develop its workforce right from school. They include; ADNOC Petroleum Institute and the Achievers Oasis Program. Within the company, PC based-based training has taken center stage (ADNOC, 2004: 37). Such initiatives help in developing competencies and skills of employees. 3.0 Conclusion In spite of the fact that training can be a costly affair to an organization, it can be of great benefit. The advantages of training to an organization outweigh disadvantages. ADNOC took the initiative of developing its workforce in order to adapt to the emerging challenges resulting from operational environment change. Other challenges that may arise include competition from emerging companies in the same line of operation. The success of an organization depends on how well the employees relate with clients and perform tasks. Service delivery ought to be fast and professional. Indirectly, training helps companies retain its workforce. The success of a training program is dependent on design and implementation. In addition, it also depends on the training method used. When choosing an appropriate training method, important considerations are line of work that needs training and the cost effectiveness. On-the-job training methods such as direct instruction can be cost effective owing to the fact that experienced employees can be used as instructors. On the other hand, off-the-job training methods such computer-based training can be cost effective when used. However, as earlier stated, some workers learn best when training is done in a group while others learn best in seclusion. It is the sole duty of management to put into consideration all these factors if the training program is to be effective. 4.0 References ADNOC (ATI). ADNOC Technical Institute (ATI). 6 th April 2013. ADNOC. (2004). ADNOC’s Five Year Achievements Report 2000-2004. Retrieved from ADNOC. ADNOC Scholarship Program. 6 th April 2013. Retrieved from ADNOC. Training & Development. 6 th April 2013. Al-Khayyat, R. & Elgamal, M. (1997). A Macro Model of Training and development: Validation. Journal of European Industrial Training, 21(3): 87-101. Calvin, G. (2010 Nov 20). The Various Types of Employee Training. 5 th April 2013. http://training.ezinemark.com/the-various-types-of-employee-training-31b22850ee2.html Donald, N. M. (2009). The Effects of Training on Employee Performance. 5 th April 2013. Retrieved from Grace, N. (2013). The Effects of lack of Employee Training. April 5, 2013. Retrieved from Kaufman, R. (2006 May 22). Special Report: Training and Development. 5 th April 2013. Retrieved from Laing, I. F. (2009). The Impact of Training and Development on Worker Performance and Productivity in Public Sector Organizations: A Case Study of Ghana Ports and Harbors Authority. Kwame Nkrumah university of Science and Technology. McKay, M. (2013). Developing an Effective Employee Training Program. 5 th April 2013. Retrieved from Riley, J. (2012 Sept 23). Managing People – Methods of Training at Work. 5 th April 2013. Retrieved from Robert. (2011 April 30). Methods of Training Employees. 6 th April 2013. Retrieved from Salvi, S. S. (2013). What is Training and Development? 5 th April 2013. Retrieved from Shaw, J. (2013). Effects of Training on Employee Performance. April 5, 2013. Retrieved from Read More