Proper Use of Knowledge Is Becoming a Reliable Source - Case Study Example

1.0 The Need for Learning, Training and Development The increasing globalization of the world and rapid changes that are already taking place underscores the importance of the human capital in organizations. In today’s economy where the only certainty is uncertainty, the acquisition and proper use of knowledge is becoming a reliable source of competitive advantage. While traditional factors of production such as the soil, labor and capital still form the basic elements of a business, knowledge becomes the trigger of development. It is thru knowledge that the organization will know how to optimize their assets. Present day competition is now based on efficient knowledge acquisition and management whereas before it was built on foundations of possessing specific resources and low costs. (Friedman, Lipshitz and Popper, 2005) The period of mass production has ended and that customers now are indeed very selective. Consumer demands now require new solutions which can only be addressed through knowledge. Due to the tight competition, organizations now have to constantly revise its product and service mix, managerial methods and increase productivity. With the increasing complexity of the market and its dynamics, the organization can only rely on the knowledge they have acquired to make their investments succeed or just survive. (Tsang, 2000) Locating corporative knowledge, how to release it and develop to achieve organizational goals has become very important. This brings us to the question: Where is organizational knowledge located? It is largely located in the human mind or in the head of the employees. Indeed, human resources serve as carriers of knowledge and activities and are becoming a key factor in the success of the business. Since the organizational knowledge is largely located inside the human mind, i.e. the head of employees, as carriers of knowledge and activities, human resources are becoming the key factor of business success. That is why contemporary organizations pay more and more attention to the development of their employees. Organizational development is directed and managed by human knowledge and skills. Only by realizing this can we understand why employee education and training are becoming optimal solutions provider to complex business situation. This is the very basis of founding the field of human resources management. It is through the process of training and developing employee skills and knowledge that an organization can hope for constant knowledge innovation, conditions for mutual knowledge, experience exchange and proactive behaviour. It in the current and the future setting, it is important to know that continuous employee training and development plays a significant role in the development not only of the individual but also of the organization. The strategic procedure of conducting employee training and development is to ensure that the employees will enhance their creativity, inventiveness and ability to provide the organization with uniqueness. Organizations, whether they maybe very large or small, now recognize that education is no longer the duty and privilege of those in higher positions and skilled labour but of everyone. If we take a look on the business scheme of large organizations, we will be able to note that they increasingly allocate more funds to providing their employees with greater and diverse possibilities of education and development. According to Gherardi (2001), most of the organizations invest 3 to 5% of their revenue into adult education and it is estimated that organizations must provide their employees 2% of total annual fund of working hours for training and education so they could keep up with the changes of the times. It is important to note, however, that the only important knowledge is that which has strategic importance to the company and helps increase the value of the company. The only way for present day organizations to survive or succeed is to innovate and they can do this with the proper acquisition and management of knowledge. Since knowledge is located in the employees’ minds, the need for learning, training and development is therefore clear. Note, however, that, the acquisition of knowledge alone or intensively training employees will not guarantee success alone. For example, the ill-fated Rover automobile company claimed to be a learning organisation and intensively maximized the individual learning of its workforce. Nonetheless, it failed. Rogan, Gratton and Ghoshal (2004) note that Chaparral Steel and BP also maximized the learning of its workforce and were very successful. The difference was that Rover outsourced its human resource management while Chaparral Steel and BP developed it from its senior managers. It then becomes important to know what works and what fails. As I have already discussed the importance of learning and training, I will now go into a discussion of the process of learning and the various effective training methods so as to provide the reader ideas of effective training and development methods. 2.0 The Process of Learning 2.1 Theories on How People Learn Psychology has provided us with interesting ideas that attempts to explain how people acquire knowledge. According to Driscoll (2002), learning is guided by the following principles: Learning occurs in context - Without an appropriate setting, learning is unlikely to succeed. Learning is active and reflective – learning occurs when the learner is able to connect new knowledge and existing knowledge and construct meaning from their own experiences. The learner must be given the chance to given chances to express and evaluate on their own thinking. Learning is social – the learning process results from the collaboration of groups because it enables the learners to hear different perspectives and accomplish the learning tasks with the help of their peers and experts. On a more formal note, there are three dominant learning theories which provide different perspectives on how learning occurs. They are the following: 1. Behaviorism – This field suggests that learning is a relatively permanent change in behavior due to experience. Simply stated, the learner must be engaged in the behavior in order to learn. (Ormrod, 1999) 2. Cognitivism – This field considers how people perceive, interpret, remember and think about the environmental events they experience. According to this line of thinking, learning occur when information is mentally processed and the structure of learners knowledge changes. (Mayer, 1982, p. 1040) 3. Constructivism – Learning is constructed by the learners according to their interpretation of their own experiences. According to Jonassen & Land (2000, p.v), constructivists believe that learning is “wilful, intentional, active, conscious, constructive practice that includes reciprocal intention-action-reflection activities.” Learning is essentially a conscious activity guided by intentions and reflections. 2.2 Learning Styles There are different manners by which people learn. The different learning styles refer to the ways that learners perceive and process information. According to the University of Maryland (2003), there are three identifiable learning styles: visual, auditory, and kinesthetic. As can be deduced, visual learners learn by looking and seeing. Auditory learners learn by listening and hearing while kinesthetic learners learn by touching and doing. The learning process may not be excluded to just one learning style but most often include the combination of the three. Essentially, different instructional strategies should be utilized according to different learning styles. It is important to note that the workforce to be trained and developed consists of adults and adult education has many unique properties. Foley (1994) relates that unlike children, adults are more critical of what is being taught to them and how it is being taught. The adult mind, which has accumulated life experiences and knowledge, may resist new ideas or may not be as perceptive because of their age. Also, adults have a propensity to command respect because of their age and experiences. Oftentimes, adults like to be treated as equals in experience and knowledge and allowed to voice their opinions freely in class. 3.0 Barriers to Learning According to Foley (1994), adults have many responsibilities that they must balance against the demands of learning. These often include lack of time, confidence, money, interest, information about opportunities to learn, “red tape”, scheduling problems, "red tape" and most especially problems with child care and transportation. Another barrier to learning is the motivation to learn. Usually, the workforce would only engage in training if it would be a direct directive from company executives or if there are benefits for engaging in such. These are intuitive problems with workforce education but in the course of the research, I have bean able to identify four key dimensions of learning barriers: intrapersonal, relational, cultural, structural, and societal. They are discussed further in the following sections: 1 3.1 Intrapersonal dimension Psychologists such as Driscoll (2004) have identified three factors inhibiting organizational learning. They are the emotional constraints, psychological tendencies, and cognitive constraints. Emotional constraints refer either to strong negative emotions or negative effects of positive emotions. In the learning process, the teacher and other learners may draw strong negative emotions such as fear, anxiety, distress and pessimism. These feelings arise from the pressure that they must grasp the concepts in the learning program or have their employment endangered (Dovey, 1997). Positive emotions such as satisfaction, contentment and pride and classified by Easterby-Smith (1997) as achievement emotions tend to elevate the self-esteem and confidence of individuals, especially those in the dominant coalition, resulting in the overprotection of the dominant routines that have been successful in the past (Thomsen and Hoest, 2001). With regards to psychological tendencies, people generally think that what they believe is right and they act defensively against threatening and embarrassing situations usually arising from being taught that their espoused theory is wrong. When they are made aware of their wrongful thinking and actions, individuals often act in ways consistent with their theory-in-use and resist the concepts being taught (Contu et al, 2003). Individuals also differ in cognitive readiness to learn meaning others can learn faster while others do not (Hoff et al, 2004). 3.2 Relational Dimension The organization is a place for establishing relationships but not all of them are healthy. Unhealthy relationships such as dislike for co-employees, tension between manager and regular employees and others of this kind results to negative effects such as polarizing individuals, withholding information, and frequent misinterpreting. All of these combine and contribute to create learning barriers. (Zollo and Winter, 2002) 3.3 Cultural Dimension According to Hoff et al (2004), the organization is host to many cultures but there exits an organizational culture that represents the collective values and beliefs held by the individuals in the organization. However, even though the organization tries it best to promote a dominant culture, not all values and beliefs are held by all individuals in the organization. These differences in beliefs serve as a barrier to learning. For example, a training program developed with Western orientation and is being conducted on Asian employees would be ineffective because of the obvious differences in the cultural setting. There is also a cultural predisposition that the responsibility for initiating learning rests with leaders (Zollo and Winter, 2002). This mindset creates challenges for organizational learning and often leads to differences in mental models between managers and the lower level employees resulting in different interpretations of their learning role. 3.4 Structural dimension The structural dimension concerns the learning barriers created by organizational authority structures, organizational communication structure and group communication structure. All organizations have established a form of hierarchy. Centralized structures are particularly troublesome because of the top down decision making which promotes organizational bureaucracy and propagates the dictates of senior management which could hinder organizational learning. Also, the challenge of an organization is to ensure that information finds those individuals who need such information but the problem is that such information may become inaccessible to individuals because it resides within individuals or in some storage device. Therefore, the availability, the physical accessibility, the amount of encoding required and the cost of communicating through the communication channels do provide structural constraints that affect the learning process. (Kontoghiorghes, Awbre and Feurig, 2005) Another key inhibiting factor at the group level is the size and composition of the group. The larger the group size, the more difficult it will be to share information and group work can become dysfunctional. Also, a less heterogeneous membership reduces the likelihood of a higher quality decision being made due to more commonality and less diversity of information. Higher status member will often be provided with more opportunities to contribute than lower-level members thus influencing the importance and weight given to information. (Waldersee,1997) According to De Holan et al (2002), the best way to motivate adult learners is simply to enhance their reasons for enrolling and decrease the barriers. Thus, instructors must learn why their students are enrolled discover what is keeping them from learning. They must then plan accordingly their motivating strategies. 4.0 Elements of an Effective Training According to Noe, Hollenbeck, Gerhart & Wright (2007), pplanning an effective training program involves a systematic approach to training including needs assessment, design of the learning environment and consideration of employee readiness for training and transfer of training issues. All of these should be considered thoughtfully so that the training can continue. There is a need to establish a link with the company’s strategic direction and demonstrate through cost-benefit analysis that the training contributes to profitability. There are numerous training methods but the key to a successful program is to choose a method that would accomplish the objectives of the training. Planning is very essential especially in the preliminary phase so as to achieve the desired results. A careful consideration of organizational needs and employee capabilities should be conducted. This is necessary so that the organization does not waste its money on a fruitless investment. 4.1 The Implementing Agency: HRD As noted before, training programs must be designed so that the desired outcomes are achieved. The department in charge of this is usually the Human Resource Department (HRD). The HRD is responsible for all aspects of personnel management whose responsibility covers not only present employees of the organization but also of prospective applicants and retiring personnel. Its function include job analysis, human resource planning, employee recruitment, selection, motivation and orientation, performance evaluation and compensation, training and development, labor relations and the safety, health and wellness of all employees which may extend to their immediate family. Human resource departments are responsible for all aspects of personnel management. Its responsibility covers not only present employees of the organization but also of prospective applicants and retiring personnel. Its function include job analysis, human resource planning, employee recruitment, selection, motivation and orientation, performance evaluation and compensation, training and development, labor relations and the safety, health and wellness of all employees which may extend to their immediate family. (Condrey, 2006) Noe et al (2007) states that the HRD links training programs to organizational needs by implementing the instructional design process. The process consists of six different steps: 1. Assess needs to determine if training is needed. 2. Ensure that employees have the motivation and basic skills to master training content. 3. Address whether the training session has the factors necessary for learning to occur. 4. Ensure that trainees apply the content of their training to their jobs. 5. Choosing a training method. 6. Training evaluation which involves determining whether training achieved the desired learning outcomes and financial objectives. 4.2 Knowing what is needed Developing a training program starts with a Needs Assessment. This refers to the process used to determine if training is necessary. Needs analysis typically involves organizational analysis, person analysis and task analysis. Organizational analysis involves determining the business appropriateness of training given the company’s business strategy, its resources available for training and support by managers and peers for training activities. Person analysis is the process for determining whether employees need training, who needs training and whether employees are ready for training. Task analysis is the process of identifying the tasks, knowledge, skills and behaviors that need to be emphasized in training. (Noe et al 2007) 4.3 Employee Appraisal The second step in the instructional design process of training program is to evaluate whether employees are ready to learn. Readiness for training refers to whether (1) employees have the personal characteristics (ability, attitudes, beliefs and motivation) necessary to learn program content and apply it on the job and (2) the work environment will facilitate learning and not interfere with performance. (Condrey, 2006) 4.4 Comparison of widely used training methods. Presentation methods refer to methods in which trainees are passive recipients of information. Presentation methods include traditional classroom instruction, distance learning and audiovisual techniques. These are ideal for presenting new facts, information, different philosophies and alternative problem-solving solutions or processes. Hands-on methods are training methods that require the trainee to be actively involved in learning. Hands-on methods include on-the-job training, simulations, business games and case studies, behavior modeling, interactive video and Web based training. These methods are ideal for developing specific skills, understanding how skills and behaviors can be transferred to the job, experiencing all aspects of completing a task and dealing with interpersonal issues that arise on the job. Group building methods help trainees share ideas and experiences, build group or team identity, understand the dynamics of interpersonal relationships and get to know their own strengths and weaknesses and those of their coworkers. Various training techniques are available to improve work group or team performance, to establish a new team and to improve interactions among different teams. All involve examination of feelings, perceptions and beliefs about the functioning of the team; discussion; and development of plans to apply what was learned in training to the team’s performance in the work setting. Training using presentation methods maybe limited in their scope as the trainer depends on presentation materials that may be too much to absorb in a single session. Hands-on training can be advantageous because it provides the necessary experience for the employee to learn. One is more apt to learn while doing it for themselves rather than relying on lectures. Group building methods can improve individual efficiency but such methods usually require activities that may increase negligence claims. The best thing to do is to have a combination of the elements of the three training methods. (Noe et al, 2007; Riccucci, 2006) 4.5 Training methods for employee orientation and diversity management. Employee orientation is the process by which new employees are transformed into effective members of the company. Orientation involves familiarizing new employees with company rules, policies and procedures. Typically, a program includes information about the company, department in which the employee will be working and community. Effective orientation programs actively involve the new employee. An important characteristic of effective orientation is that peers, managers and senior coworkers are actively involved in helping new employees adjust to the work group. Diversity management involves diversity training. This refers to training designed to change employee attitudes about diversity and/or develop skills needed to work with a diverse workforce. Diversity training programs differ according to whether attitude or behavior change is emphasized. The former refers to programs focusing on increasing employees’ awareness of differences in cultural and ethnic backgrounds, physical characteristics and personal characteristics that influence behavior toward others. Behavior –based programs focus on changing the organizational policies and individual behaviors that inhibit employees’ personal growth and productivity. (Noe et al, 2007; Condrey, 2006) 4.6 Evaluating Training Programs. To evaluate the effectiveness of training programs, there is a need to assess training outcomes. Training outcomes can be categorized as cognitive outcomes, skill-based outcomes, affective outcomes, results and return on investment. Cognitive outcomes determine the degree to which trainees are familiar with principles, facts, techniques, procedures or processes emphasized in training. Skill-based outcomes include acquisition or learning of skills and use of skills on the job. Affective outcomes include attitudes and motivation. Reaction outcomes refer to trainees’ perceptions of the program including facilities, trainers and content. Results are used to determine training’s payoff for the company. Return on investment refers to the comparison of training’s monetary benefits with its costs. (Riccucci, 2006) 5.0 Conclusion The importance of training and developing an organizational workforce should be clear by now. In todays economy, youre going to fall behind if you are not training your people. The primary reason training is considered optional by so many business owners is because its viewed more as an expense than an investment. However, employees are the organization’s principal business asset. Investing in them thoughtfully and strategically will bring rewards that pay off now and for years to come. Your employees are the ones that produce, refine, deliver, protect and manage products or services every day. With the rapid pace and international reach of the 21st century marketplace, continual learning is critical to the organization’s success. It should also be clear by now that one does not train employees haphazardly. The process requires careful considerations of many factors. Not all organizations are the same so one can expect that the model used by a successful company could be applied for another company. The organization must conduct an instructional design process that calls for a needs analysis, training method determination and outcome evaluation. Training is very important but this will be the case only if the training program designer is very careful in his design. 7.0 References Condrey, Stephen E. (ed.) (2006) Handbook of Human Resource Management in Government, 2nd edition. San Francisco: Jossey-Bass Publishers. Contu A, Grey C, Örtenblad A (2003). Against learning. Human Relations. 2003;56:931–952. De Holan PM, Phillips N, Lawrence B (2002). Managing organizational forgetting. MIT Sloan Management Review. 2004;45:45. Dovey K (1997). The learning organization and the organization of learning. Management Learning. 1997;28:331–349. Driscoll, M. P. (2002). 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