The Government Initiative New Deal Area of Training - Assignment Example

Critically analyse the government initiative "New Deal" area of training and to assess where such an approach could be used within an organizational setting 1. Introduction Human resources development has been traditionally one of the most significant aspects of modern organizational activity. In fact, it is no important if the organization involved belongs in the private or the public sector; both sectors need the particular scheme (or else strategy) in order to operate effectively. An issue that has been extensively examined in the literature is whether countries within the international community need to apply different human resources development schemes. Indeed, a relevant research showed that human resource management within the international market has to focus on the following issues: ‘a) the business structure, b) the legislative and employment relationship context, c) the patterns of HRM competence and decision-making and d) the national culture’ (Schuler et al., 1998, 159). In accordance with the above study human resources development has to be differentiated in each country worldwide in accordance with the local business ethics and the national culture; the potential of organizations to respond to the needs of the particular strategy (especially regarding its cost) has also to be considered as playing a role in the above differentiation. In order to measure the value of human resources development in organizations within the international market, it is necessary to refer to the particular elements of HRD as they can be observed in daily business activities worldwide. Regarding a particular aspect of HRD, training, it is suggested by Reid et al. (2004, 52) that ‘training is an intervention into an ongoing learning process; the culture, philosophy, policies and procedures of the organisation form a very powerful learning environment, which must be taken into consideration’. In fact, organizations can choose among different HRD strategies when having to develop their employees’ skills. For this reason, Brown (1997, 15) noticed that ‘organizations can buy skills through hiring, or they can develop skills through training and development (T&D) activities’. Current paper refers to a particular aspect of HRD, this of training and especially to a relevant scheme implemented by the British government in order to support new employees in the medical sector. The scheme analyzed is ‘New Deal’, a programme of active labour market policies introduced in the United Kingdom by the Labour government in 1998 aiming to reduce unemployment by providing training, subsidised employment, and voluntary work to the unemployed’ (Wikipedia, 2007). The particular effort has started earlier in 1991 when a similar agreement made between the British government and the employees in the medical sector. More specifically, it is noticed that an ‘agreement reached in 1991 between representatives of doctors in training and the UK Government aimed at improving the conditions under which training grade doctors work’ (Scottish Executive Health Department, 2006). The content and the effectiveness of the above scheme are being analyzed trying to identify the strengths and the weaknesses of ‘New Deal’ as applied in the healthcare industry across UK. 2. Main aspects of human resource development (HRD) In order to understand the relationship between the human resources development (HRD) and ‘New Deal’ and to effectively evaluate the value of the latter towards the enhancement of the former, all particular elements of both these HR strategies should be analytically presented. In this context, it is noticed by Lajara et al. (2002) that human resources management is related with the following issues: ‘1) leadership and employee motivation and 2) HR practices (recruitment and selection, training performance appraisal and compensation management)’ (Lajara et al., 2002, 34-36. On the other hand, it is mentioned by Reid et al. (2004, 50) that ‘in managing the HRD function we are continually attempting to decide whether some kind of deliberate learning or training intervention needs to be inserted into the natural learning process; if we decide that it does, the next question is what specific form the intervention might take’. In other words, HRD can refer to a series of different initiatives within the organizational environment; however training is its common form in most organizations internationally. The particular methods used when providing training to employees can be furthermore differentiated in accordance with the culture of the particular organization and its aims both in the short and the long term. 3. ‘New Deal’ scheme – characteristics and targets ‘New Deal’ has a series of specific characteristics. More specifically, its main features could be described as follows: ‘a) limits on the number and intensity of hours worked by doctors in training; b) minimum standards for the provision of residential accommodation and catering services; and c) provision of a safe and secure environment’ (Scottish Executive Health Department, 2006). The characteristics of ‘New Deal’ as described above can be differentiated across organizations under the influence of the principles and the ethics applied within a particular organization. The general conditions of the market involved could be also regarded as having a significant impact on the application of the above scheme in organizations of both the private and the public sector. It should be noticed that the features of ‘New Deal’ have been revised in 1998 in order to meet the demands of the British market (in accordance also with the changes that have been made in the meantime in employees’ rights and obligations within all industrial sectors but especially in the healthcare industry in which the particular scheme refers). The most significant changes that took place during the reform applicable since March 1998 are the following ones: a) it is stated that ‘"the New Deal" means the arrangements known by that name and made under section 2 of the 1973 Act for which only persons who are aged 18 years or over and less than 26 years immediately prior to entry are eligible and which are designed to help New Deal Participants to obtain work or to improve their prospects of obtaining work; and b) "the New Deal Components" means any of the following: "the Full-time Education and Training Option", "the Voluntary Sector Option" and "the Environment Task Force Option"’ (Statutory Instrument, 1998). In other words, ‘New Deal’ refers to a specific part of the population and to a specific format of training provided within the workplace. A significant feature of ‘New Deal’ has been the introduction of the feature of Personal Adviser who is responsible for the provision of necessary information to all potential employees in the healthcare industry. Moreover, it is mentioned that ‘any gaps in skills or knowledge are identified and the New Deal Personal Adviser may suggest extra help to get the participant ready for work, such as support to develop self confidence’ (Department of Employment and Learning, UK, 2007). The above feature is quite importance for employees that are new in the healthcare industry and particularly trainees. In fact New Deal focuses on the protection of the rights of trainees in the medical sector. However, through the years, the content and the role of New Deal have been differentiated losing their initial importance. Towards this direction, the study of Davies et al. (2002, 1111) showed that ‘flexible training is under threat; the new pay deal—which was intended to bring improved working hours and conditions to junior doctors, with (at last) fairer remuneration for long hours of work—has had the opposite effect on flexible training’. In other words, ‘New Deal’ has lost its ability to protect the rights of employees (especially trainees) in the medical sector. The introduction of new employment schemes – like the flexible training – have caused severe damages to the particular scheme leading to the need for continuous and extensive changes in order for the specific arrangement (New Deal) to become effective for workplaces in British medical industry. 4. Applicability of ‘New Deal’ scheme on a particular organizational setting – requirements and implications The presentation and the analysis of the characteristics of New Deal have proved that the specific scheme is extremely useful in workplaces around Britain. However, in order for this scheme to be applicable in the private sector, a series of changes would be required. More specifically, the issue of social identity should be taken into consideration. Social identity is necessary within modern corporations because it supports the provision of necessary information regarding teams existing within a particular workplace. Towards this direction, it could be stated that the application of New Deal within a corporate environment could not resolve a series of issues appeared in the workplace; in this context it is supported that ‘there is a gap in human resources development to provide training at a group level; although the individual is usually placed at the centre of the organization, it is essential to recognize identity-related constraints beyond the individual level to ensure continuous individual learning’ (Development and Learning in Organizations, 2007, 30). In fact, New Deal would not be able to respond to organizational needs for promotion of the team work. Apart from this, the cost involved in the implementation of this scheme in a specific organizational environment would be possibly prohibitive towards the application of New Deal in firms operating in the private sector. In this context, it is noticed by Walker (1998, 9) that ‘costs of human resource processes and initiatives (investment of money, time, and other resources) are best measured in relation to their outcomes while unusually high recruiting and training costs may be justified by the resulting business results achieved; however, such recruiting and training costs should also be evaluated in terms of productivity measures and results achieved’. In other words, any cost related with the improvement of organizational performance could be regarded at a first level as justified. However, in the long term the application of a relevant scheme (like in the case of New Deal) could be proved to be extremely costly for the specific organization. 5. Conclusion In order to check the effectiveness of New Deal in workplaces around Britain we should primarily examine the results of its application in the country’s public sector (in which this scheme mainly involves). Towards this direction it has been suggested that ‘if we are truly to make the NHS family friendly and allow doctors to work part time, we need to ensure that flexible trainees are adequately paid and trained, and have adequate opportunity to obtain a part time job; the first has been achieved; to achieve the rest we need better organisation and funding, rather than renegotiating the pay deal’ (Mamode et al., 2002, 7361). The above study refers to the results of the application of New Deal on a particular industry, the medical one. In fact, New Deal has been extensively applied in the British healthcare industry; however other industries have also accepted the specific scheme as an effective solution for the fair distribution of tasks and rewarding among employees in a particular workplace. Any possible feedback on the application of New Deal in practice would be extremely helpful towards the evaluation of the effectiveness of this scheme in the British public sector. Regarding this issue, it is noticed by Reid et al. (2004, 52) that ‘although positive feedback can bring about a relatively permanent learning outcome, negative feedback or harsh criticism may be effective only as long as some threat appears imminent’. In the long term, the application of New Deal has been proved to help significantly the improvement of working conditions of employees in all British industries that belong to the public sector. The possible applicability of New Deal in the country’s private sector cannot be rejected (in accordance with the terms mentioned above) but it would be necessary that all appropriate measures should be taken in advance. References Brown, K.G., Durham, C.C., Kristoff, A.L., Kunder, L., Olian, J.D., Pierce, R.M. (1998). Designing Management Training and Development for Competitive Advantage: Lessons from the Best. Human Resource Planning, 21(1): 20-32 Davies, M., Eaton, J. (2002) Flexible training under the new deal. BMJ, 324(7346): 1111-1112 Department for Employment and Learning (2005) New Deal, [Online], available http://www.delni.gov.uk/index/successthroughskills/skills-and-training-programmes-2/newdeal.htm de Silva, S. (1997) Human Resources Development for Competitiveness: a priority for employers, International Labour Organization, [Online], available at http://www.ilo.org/public/english/dialogue/actemp/papers/1998/srshrd.htm Development and Learning in Organizations (2007) Social identity is key to human resources development: Theory and implications for learning programs, 21(5): 30-32 Lajara, B.M., Lillo, F.G., Sempere, V.S. (2002) ‘The role of human resource management in the cooperative strategy process’, Human Resource Planning, 25(2): 34-46 Mamode, N., Hobart, A. (2002) Negotiators explain flexible training under the new deal. BMJ, 325(7361): 442 Reid, M., Barrington H, Brown, M. (2004) Human resource development: beyond training interventions, London CIPD Schuller, R., Rogovsky, N. (1998). Understanding compensation practices across firms: the impact of national culture’, Journal of International Business Studies, 29(1): 159-172 Scottish Executive Health Department (2006) Introduction to the New Deal, [Online], available at http://www.newdealsupport.scot.nhs.uk/introduction.htm Statutory Instrument 1998 No. 217 The New Deal (Miscellaneous Provisions) Order 1998, [Online], available at http://www.opsi.gov.uk/SI/si1998/19980217.htm Walker, J.W. (1998). Are We Using the Right Human Resource Measures? Human Resource Planning, 21(2): 7-10 Wikipedia (2007) The New Deal, [Online], available at http://en.wikipedia.org/wiki/New_Deal_(UK) Read More