The Importance of Employee Training and Development - Term Paper Example

 Table of contents Executive Summary 3 Introduction 4 Discussion Strategic role of HRD 5 Need for redefining HR strategy 6 Major issues in training 7 Need for training and development 7 Barriers to training programs 9 Conclusion 9 Recommendations 10 References 13 Executive Summary The fast changing technology and rapid globalization has necessitated reevaluation of previous strategies, in all areas of human interaction, so as to encompass the changing paradigms and maintain a competitive edge over their competitors. The impact of technology is visible on every aspect of professional and personal life of a modern man. To keep up with the pace of advancement, it has become imperative to upgrade the existing skills through training programs. The current scenario of working populations therefore faces much more challenges than the people who were earlier working in different work environment. Hence, in the changing environment of business imperatives, the organizations need to opt for training their employees and staff in the emerging new skills to meet the challenges of the time. CQ Manufacturers must also incorporate necessary changes in their HR strategies and gain essential leverage through training and development of their human resource. Short Report Reference The short report is prepared for Senior Managers of CQ Manufacturers so as to generate awareness and need for training of its workforce to meet the challenges of the changing business paradigms. Introduction The process of globalization has changed the dynamics of the business world. Change has become essential for development and organizations tend to adapt to the constantly evolving business environment through appropriate training and learning modules that promote better understanding among the employees for easy changeover. “Organizations must change because their environments change” (Bateman, 1990). They implement necessary changes in the organization to not only survive but compete with their rival with confidence. The basic objective of training programs for the employees and staff is not only to learn emerging new skills in the areas concerned but they are also designed to inform and develop better perception towards new technologies that encourage confidence building and innovation of ideas. In the emerging challenges of the changing business equations, when the labour deployment is undergoing quantitative and qualitative transformations, CQ Manufacturers also needs to redefine its HR strategy to create versatility and flexibility of the contemporary work environment. Discussion Strategic role of HRD The rapid globalization and technological advancement of the recent time has greatly revolutionized the labour processes. There is a significant paradigm shift in the technical division of labour from direct to indirect model that is focused on regulation, administration, improvement and innovation to meet the challenges of the changing time. Sjostrand and Tyrstrup, in one of their article, have argued that managerial leadership needs to be approached as a relational, ongoing social construction process rather than as a single clear cut phenomenon (2001). Indeed, for any organization to expand and succeed, it is crucial that its people are recognized as vital part of its strategy and organizational goals and objectives be interpreted in the context of the changing paradigms of the times. Human resource being central to the organizational visions and goals, HR leadership initiatives become crucial factor for creating and organizing an effective workforce that is able to make valuable contribution of promoting a sense of togetherness and collective responsibility that reflects in the increased output and improved performance outcome of the organizational goals and objectives. Need for redefining HR strategy Julie Beardwell and Tim Claydon, in their book have asserted that the theoretical concept of human resource management has become ‘fuzzy concept’ with abstract empiricism and needs to be looked from a wider perspective of providing the invaluable human capital that can meet the challenges of the rapid globalization and advancing technology. (Beardwell, Claydon, 2007). The compulsions of the present times require versatility in the working force. Individuals and firms must embrace the culture of multi skilled professionals and make efforts to upgrade the skills of the existing workforce so that they are able to meet the challenges with efficiency and unmatched proficiency. In the next 3-5 years, the business environment will undergo tremendous transformation. The fast evolving technology and changing preferences of the customers would require strategic HR initiatives that would be able to meet the emerging challenges of the changing business imperatives. To overcome the recessive trends of the contemporary times, training and development of the human capital will become critical for CQ Manufacturers to gain leverage over their rival in the highly competitive environment of global business setting. Major issues in training The major issues in the training programs for the workforce are: commitment of the managers and employees; funding of the training programs; and experienced trainers who are well equipped to formulate and implement appropriate training agenda for the human resource of the organization. Need for training and development According to a recent study, ‘the task of finding, retaining, developing, and deploying a skilled workforce to meet an organization’s objectives is the number one obstacle to revenue growth’ (Julian, 2001). The management needs to realize the importance of such programs, especially in the light of rapid globalization which has made business more competitive and complex, with regard to transforming socio-economic paradigms and business dynamics. The demands of the present time, has brought the two schools of training and development into sharp focus. ‘The hard model is based on notions of tight strategic control, and an economic model of man according to Theory X, while the soft model is based on control through commitment and Theory Y’ (JMS1, 1997). The ‘hard’ approach relies on the managerial and administrative strategies to effectively deal with the changing business environment. The soft approach, on the hand is based commitment on the capitalization of human resource with relevant input from the department of training and development. The circumstances, therefore, demand a mix of the two approaches in the labor deployment. Strategic controls with flexible approach are need of the hour. Christensen and Raynor say that companies fail because they tend to follow the theoretical models and assumptions, without making any efforts to alter those models to suit their parameters and value system (2003). The management needs to accept the challenge of creating a cohesive and encouraging atmosphere so that the workers could get effective learning environment. They are provided with a wider scope for professional growth in the area of core competencies. They are also responsible for advocating and nurturing a high standard of ethics and quality work while fostering a good relationship amongst them which includes the administrators, management and entire customer base. Barriers to training programs Misplaced priority of the managers and lack of understanding of the contemporary business compulsions are the major barriers to promote regular training programs for the workforce, within an organization. Business organizations are driven by the main objective of financial gain through continuous production that often leads to short term gain but fails in the long term due to lack of training that is necessary to keep abreast with the changing business equations of the time. While funding and expertise for training are also important hurdles but they can be overcome once the managers and employees believe in the training schedules and become committed towards regular training programs to improve and improvise their work performance. Conclusions The changing times have made the businesses more competitive thereby making it obligatory for them, as well as for the working force to become more flexible and swiftly adapt to the changing technologies and products. The current scenario of working populations therefore faces much more challenges than the people who were earlier working in different work environment. Training and development of the human capital has become intrinsic to the overall performance outcome of the organization. Recommendations Strategies and policies must incorporate the changing nature of the society and focus more on training and development of human resource to meet the challenges of the global competition. The workforce must be looked as resource that can be tapped to improve and improvise the performance of the organization in the fiercely competitive business setting. The HR department, through judicious approach of employing people and upgrading their skills to suit the changing business environment must create congenial work atmosphere that motivates and inspires others to improve their performance and achieve organization’s goals with vision and innovation. Period workshop/ awareness program must be conducted for the staff and management for various business paradigms like gender sensitization, changing regulations of safety, managing diversity, environment etc. In an article from Leader to Leader Journal, Frances Hesselbein has said that ‘Leadership is a matter of how to be, not how to do’ (No. 41, 2006). Hence, leadership initiatives must be able to exploit the potential of the workforce as per the demands of the changing times. HR leaders need to be aware that the traditional process of labor deployment is undergoing a fast transformation, both in terms of quality and quantity. ‘It is widely acknowledged that over the past decade and a half, radical new forms of production have emerged with the pervasive expansion of information and communication technology (ICT)’(Freeman et al, 1988; Best 1990). The rapidly changing models of work environment has made it imperative for the employees and the job aspirants alike, to keep themselves updated with the knowledge and use of all the latest gadgets and processes which are increasingly replacing the older model of office efficiencies. The technical division of labor has become more jobs specific and highly skilled. The cultural production has multidimensional facet that not only contributes towards creating identities and disseminating information and knowledge but it also helps to establish a unique relationship among individual, promoting understanding. Hence, the hierarchal division of labor that needs to conceptualize and produce such cultural production becomes more sophisticated in its approach and complex in production processes. The new HR strategy must promote and inculcate a climate of Empowering the workforce promotes mutual trust building as it helps the person to act on the informed choices and make decisions that would not only affect the person himself but would also have significant impact on the working of the organization thus encouraging responsible behavior. Reference Bateman, Thomas S., and Carl P. Zeithaml. Management: Function and Strategy. Homewood, IL: Irwin, 1990. Best, M. (1990). The New Competition: Institutions of Industrial Restructuring. Cambridge. MA: Harvard University Press. Christensen, Clayton M and Ranor, Michael E. (2003). Why hard-nosed executives should care about management theory. Harvard Business Review. September. pp. 67-74. Freeman, C., Nelson, R., Silverberg, G., Soete, L. and Dosi, G.(1988). Technical Change and Economic Theory. Continuum International Publishing. London. pp 38-66. Hesselbein. Frances. (2006). Moving Peter Drucker’s Works and Wisdom Around the World. Leader to Leader Journal, No. 41, summar 2006. Available from: [14 April, 2009]. Julie, Beardwell and Claydon, Tim (2007). Human Resource Management: A contemporary Approach. 5th Edition. Prentice Hall. Julian, H., & Boone, C. (2001). Blended Learning Solutions: Improving the Way Companies Manage Intellectual Capital. IDC White Paper. Soft and Hard Models of Human Resource Management: A Reappraisal. (1997). Journal of Management Studies 34 (1), 53–73. Sjostrand, S and Tyrstrup, M. (2001). Recognized and unrecognized managerial leadership, in invisible management – The social construction of leadership. S Sjostrand, J Sandberg and M Tyrstrup (eds.). Thomson. pp 1-27. Read More