Training and Development in Small Businesses - Term Paper Example

Training and Development in Small Businesses Introduction In the current context of big competition in the global and domestic markets, business firms are eager to invest heavily in training and development so as to keep their workforce competitive. This would also help them confront the market rivals in an efficient manner. This paper will evaluate the operations of EPAM systems, a provider of software product development services that was ranked #3 on the Forbes America's Best Small Companies List 2014. The paper will give particular emphasis to the concepts of training and development and organizational performance. Key Elements of Training and Development The basic purpose of any training and development program is to improve the performance efficiency of the employees and to increase the overall organizational productivity. In order to make this program effective and to ensure that the outcomes justify the investment, it is necessary for the EPAM systems to perform a training needs analysis prior to the execution of the program. This practice may assist the organization to ensure that the training employee receives would match his/her performance requirements. First, it is essential for the manager to identify the root cause(s) behind the poor performance of an employee because a general training policy may not address the actual developmental needs of the employee. If more than one person requires a particular type of training, then it is better for the company to arrange group training so as to reduce the total costs involved. It is clear that setting up a group training session for the firm’s employees would be less costly than arranging training sessions for individuals at different times. In addition, EPAM systems may conduct a cost-benefit analysis before investing in training and development in order to assess whether the training outcomes would substantiate the training costs. Once the training needs are identified, it is vital for the organization to develop training objectives and learning outcomes so as to describe what the trainees/learners will be able to do after the completion of the training program (Wilson, 2005, p.346). The learning outcomes are specifically intended to judge whether or not the training program is a success. While developing training objectives and learning outcomes, the EPAM systems management must ensure that they are in line with the mission and business goals of the organization. The organization should develop content and instructional design in the next phase. As EPAM systems is a provider of software product development services, it is better for the company to rely on on-the-job training approach to achieve optimal instructional delivery and to enhance the learning process. The company may use internal resources such as in-house trainers and external resources like outside consultants to deliver training in an effective manner. In addition, the organization must choose appropriate education and training materials that are aligned with the objectives and learning outcomes. The management should give the learners the opportunity to apply the knowledge and skills acquired promptly in the workplace and to demonstrate new abilities. Finally, evaluating the effectiveness of the training program is particularly essential for the company to identify whether the objectives and learning outcomes were achieved. Challenges in Addressing Organizational Performance There are many challenges that the managers of EPAM systems could face in addressing organizational performance. First, worksite conflicts appear to be a major challenge for the managers in improving the overall organizational performance. With the emergence of globalization, worksite environments have become increasingly diverse and the situation leads to frequent and intense employee conflicts. As a result of this serious worksite issue, the EPAM systems finds it difficult to influence employee behavior and to direct their efforts towards the achievement of organizational goals. Second, lack of open and effective communication across the organization seems to be another major threat when it comes to strengthening organizational performance. Different issues in the worksite environment are compounded by lack of open communication. This issue creates a gap between the firm’s top level management and the ground level staff, and the situation in turn contributes to decline in organizational productivity. When there is poor communication, the organization would be more vulnerable to misunderstandings and confusions. Third, the EPAM systems managers also struggle to enhance organizational performance due to poor worksite collaboration. As a result of this organizational issue, the top management fails to enhance the spirit of teamwork and to promote the shared working for the accomplishment of common goals. The lack of worksite collaboration may cause the teams to remain non-functional, which in turn would diminish employee productivity and supply chain efficiency. Fourth, the company management may find it difficult to improve the overall organizational performance if it fails to meet employee satisfaction at its best level. Some employees may remain dissatisfied as a result of many reasons including poor remuneration, unfair distribution of work tasks, tough work schedules, or unsafe worksite environment. It is clear that dissatisfied employees would not be very productive and hence they cannot increase the firm’s operational efficiency. Finally, staff turnover is another key issue challenging the firm’s managers when they seek to address organizational performance. When the rate of staff turnover is high, the organization faces shortage of employees, and hence it is forced to invest additionally in training and development. In the context of increased staff turnover, the company may be forced to devote more time and money to new employee hiring, and such a situation in turn would limit the firm’s potential to grab the emerging opportunities in the marketplace. Effects of Detecting Organizational Gaps It is evident that detecting organizational gaps in small business is really beneficial for the management to identify what keeps the business from reaching its full potential. A comprehensive gap analysis may assist the organization to be informed of the key areas of underperformance. In addition, such an evaluation can benefit the company to identify whether the performance issues are related to internal inefficiencies or external challenges. By deeply analyzing the problem scenario, the company can design potential strategies to eliminate the gaps identified and maximize the profits. Small businesses always seek to detect organizational pitfalls in an attempt to reduce the gap between the current state of the business and the actual vision, both in short term and long term. It is advisable for the business to hire an outside agency or group to conduct gap analysis as this strategy is better to avoid biased outcomes. As the first step of the gap analysis, firms try to obtain a clear view of their current state. Here they gather current operational data and often interview a representative sample of employees if necessary. The gap analysis is an effective tool to mark efficiencies against both internal benchmarks and industry standards. Once the gaps are identified, the organization should explore the underlying causes of those issues. It is identified that generally most of the gaps may result from internal inefficiencies and they would hurt the strategic objectives of the business. Those gaps could be managed by bringing appropriate structural changes to the internal operations of the firm. Some other gaps may stem out from a poor response to the external environment. For instance, a gap in the product line may keep the business away from serving a specific segment of the market. Those gaps may not be necessarily associated with the business process but may be the indication that market needs are not served adequately. Once the organization obtains a clear understanding of the gaps, it is easy to determine how to bridge the gaps to reach optimum levels. Management professionals indicate that most of the gaps could be eliminated by providing adequate training for the employees. Precise detection of organizational gaps can benefit small businesses to identify the strategic responses necessary to address the current internal inefficiencies and external challenges so as to improve their market competitiveness. Training Strategy Proposal Adopting a competitive training strategy is essential for the organization to improve the position of the business in the marketplace. As the EPAM systems is a provider of software product development services, it is recommendable for the company to adopt a structured on-the-job training (structured OJT) approach. Currently the intensity of competition is very high in the software development field, and hence companies would fail to serve client needs timely and appropriately if they devote their working time to employee training and development. As a result, it is better for the organization to use its experienced employees to train new hirers while they are on the job. According to Krishnaveni (2010), “structured on-the-job training is a form of job-oriented training which is located in the workplace. The trainee performs practical assignments according to a training plan and is instructed and coached by an experienced colleague or supervisor” (p.275). More clearly, the trainer uses a company standardized checklist of tasks and performance criteria to provide the new hirer with more effective training and to certify him/her. In the view of Molnar and Watts (2000), the key rationale for using this instructional strategy is to develop the trainees in all areas of their job performance and to avoid the complexities and confusions involved in the training process to the maximum extent. Under this training approach, the trainee not only learns the job but also develops necessary skills and knowledge needed to perform his duties and responsibilities successfully. The most potential benefit of the structured OJT is that any experienced employee with minimal ‘trainer coaching’ can train a new hirer. A well-executed and well-monitored structured OJT program may be really beneficial for training employees consistently, effectively, and efficiently regardless of the trainer assigned to them. Management experts claim that this is a competitive training strategy capable of providing job task training and skills. Industry experiences indicate that the structured OJT program can maximize the return on investment mainly because trainees acquire necessary skills and knowledge required to perform their tasks in a short span of time as compared to the traditional OJT approach. Conclusion From the above discussion, it is clear that a ‘training needs analysis’ can serve the EPAM systems to ensure that the proposed training package would really stimulate the performance requirements of the employee(s). In addition, the organization needs to develop proper training objectives and learning outcomes to manage the training process effectively. It is identified that worksite conflicts, lack of open communication, poor worksite collaboration, employee dissatisfaction, and staff turnover are some of the major challenges that managers of EPAM systems face in addressing the organizational performance. Timely detection of organizational gaps can assist small business managers to explain why they are yet to reach their full potential. In addition, this practice is beneficial for firms to bridge the gap between the current state of the business and the actual vision. A structured OJT strategy may be better for the EPAM systems to train its new hirers in an effective way and to achieve greater operational efficiency. References Krishnaveni, R. (2010). Human Resource Development. Excel Books India. Molnar, J & Watts, B. (2000). SJT – Effectively Training Employees with Employees. CESD, Inc. retrieved from http://www.cesd.wvu.edu/Assets/White_Paper_PDFS/SJT_Training_Employees.pdf Wilson, J. P. (Ed.). (2005). Human Resource Development: Learning & Training for Individuals & Organizations. US: Kogan Page Publishers. Read More