The Importance and Impact of Training and Development of Employees - Assignment Example

Table of Contents Defining Training and Development: 3 Learning 3 Training 3 Development 4 Education 5 Coaching 5 Mentoring 6 The Progression of Training and Development: 6 Why Training and Development: 8 Training and Development as Agents of Change 10 Empowerment through Training and Development 10 Role of Training and Development in Recruitment and Retention: 11 Success Stories of Organizations that Invested in Training and Development: 14 KODAK: 14 FAMOUS GROUSE: 16 CANON: 17 Most organizations today, if not all, largely depend on their human/intellectual capital for growth, change, and success in the business arena. Training and development are the ways in which an organization invests in its human capital. Like all investments, the aim is that the organization should receive a benefit from its investment. Benefits are reflected in what has become known as the bottom line. The bottom line is not just measured by raw profit figures but by the relative profits and market share of the organization measured against the organization’s competitors. Training and development do not come cheap, but in a competitive commercial environment a failure to realize the human potential within an organization can be very costly (HR Magazine). Training and development are not only the responsibility of the organization, but also of the individual employees. Given that training and development require an investment by both the individual and the organization, an investment that can be measured in both financial and time terms, it is important that both partners receive value for money. It is also important to note that training and development do not occur in an organizational vacuum – they should be linked to the overall goals and strategies of the organization and to the life goals and strategies of the individual (Aguinis and Kraiger 452). In this paper, I will endeavor to define what organizations, specifically the Human Resource Department, mean by training and development, and how these processes impact the organizations’ performance and success. Towards the end of this research stories of three recognized international companies that have shown success and growth through recognizing the importance of investing in training and development will be discussed. Defining Training and Development: In order to understand how training and development benefit an organization’s performance and success, concepts relating to training and development need to be discussed first. These concepts that will be covered in this section of the paper are: learning, training, development, education, coaching, and mentoring. Learning Learning is the process by which behavior and attitudes are changed. One of the major debates in child development and education has been on the question of how much behavior is innate and how much is learnt – the ‘‘nature or nurture’’ debate. A psychological definition of learning is “any change in the general activity of an organism the effects of which persist and recur over a period of time and which are strengthened by repetition and practice” (Thomson 215). Although this is quite an old definition, it covers the major points about learning very comprehensively – the fact that learning persists and recurs and that it is strengthened by repetition and practice. Indeed, if the new behavior does not persist then it is generally accepted that learning has not occurred. Training Training is very specific and is concerned with the mastering of a particular task or set of tasks. At its most basic, training does not require understanding of the whys and wherefores. It is fairly easy to train a pigeon to select a particular shape from a collection of shapes or a Seeing Eye dog to guide a human being around obstacles or to sniff out drugs and explosives. The training process with animals involves rewards and punishments – a food treat as reward and a harsh word etc. as a punishment. The pigeon and the dog can perform very competently but there is no evidence to suggest that they know why they are behaving in this way, only that at some time in the past this type of behavior gained the animal a reward. With humans, training that encompasses a degree of “why?” tends to be more effective than training that does not. However, one can train an individual to use a computer for word processing without the individual understanding very much about how microprocessors actually work. Effective training provides the right degree of knowledge to underpin the task. The effectiveness of training can be measured by examining what a person could do before the training and what he or she can do after it. The difference may be in being actually able to perform a new task or an improvement in the manner of carrying out an old task. Development Development is a process in which learning occurs through experience and where the results of the learning enhance not only the task skills of the individual but also his or her attitudes. Whereas training does not necessarily encompass the why, development most certainly does. Development provides the individual with skills and attributes that can be changed to fit new circumstances. Whereas training can be measured objectively – before the training the person could not do X, after the training they can do X – development is much more subjective. Development not only provides skills, but also changes the way the individual thinks and reasons. Training is mechanical; development is humanistic (Lessem 32). Training may be accomplished in a relatively short time frame – development, linked as it is to intellectual growth, takes much longer. The importance of organizationally based development is that the individual’s development can occur in an environment where the development processes and activities can be linked to the culture and aims of the organization. Education Used in its formal sense, education is the broadening of the knowledge and skills base of the individual and indeed the group with the objective of the individual functioning in and being a benefit to the society he or she lives in. Development, as discussed earlier, is a process in which learning occurs through experience and where the results of the learning enhance not only the task skills of the individual but also his or her attitudes. Education is where individuals learn about the norms operating in their society. Education is an investment by a society into its members with the ultimate aim of benefiting that society. Formal education is usually provided by or in conjunction with those who are in charge of a particular society. Coaching Like training, coaching is concerned with skills, whether they are sporting skills or work skills. Every top-class athlete has a coach who works with him or her to improve technique. Coaching has always been an important component of apprenticeship schemes. Coaching has seen resurgence in recent years as organizations realize that it is an ideal method of transferring the skills and knowledge of older and more experienced employees to new hires. It also helps ensure that the intellectual capital of the organization is not diminished when an employee retires or leaves, as the skills and knowledge will have been passed on through the coaching process. Mentoring Coaching is to training, and mentoring is to development. A mentor is not concerned solely with improving skills and performance in a narrow range of tasks but with the development of the whole individual (Aguinis and Kraiger 455). A mentor is an experienced person other than the individual’s manager who provides counsel and guidance to assist the individual in his or her organizational growth. It is important that the mentor does not have a line management relationship with the individual, as that could cause a conflict of interest. Training and development is the means by which an organization invests in its employees. Change requires new skills and attitudes and thus organizations that do not invest in training and development cannot hope to benefit from change – indeed they may well not survive change. The Progression of Training and Development: Universal education is a fairly recent phenomenon and there are still many parts of the world where even a basic formal education is unavailable to most people. However, the importance and need for work-based training in order to pass on skills and knowledge has been recognized since the earliest times for which we have records. Work-based training and development predates universal education. The idea of training the young for work tasks and using older members of the family, group, or tribe to pass on wisdom and expertise is a feature of higher primates and not just humans. Formal education systems in nearly every part of the world are aimed at the younger members of society. The education system is designed to provide the basic skills of mathematics, reading, science, and the arts as well as passing on the cultural norms and values of the particular society. What the system cannot provide is the specific skills required for particular jobs. Provision in this area is best accomplished through specific programs geared to the job and the employer. This does not mean that there is no link between formal education and training and development. The more formal an education a person has received, the more honed will be his or her basic skills and ability to reason and analyze. A person with a good basic education is likely to be more accomplished at learning new skills than somebody who lacks the basics. There are exceptions – George Eastman, the founder of Kodak left school at 14. However, it should be noted that he had received teaching in basic numeracy and literacy and was proficient in both (reference). The events of the Second World War and the increasing technological aspect to industry that the war demonstrated showed that a more educated population was no longer a luxury but a necessity. Social pressures and changes throughout the world also demanded that all citizens be granted access to universal education regardless of age, gender, or social position. Organizations and society have begun to work more closely together to ensure that the skills of school leavers are those that organizations require. However, it is still the case that many employers berate education systems for not producing school leavers with the basic skills that employers can then build upon through training and development. The pace of technological change is such that it is becoming clear that the task of formal education is to produce minds that are inquiring, flexible, creative, and with the basics of numeracy and literacy and for organizations to provide the necessary work-related training and development that change requires. Why Training and Development: Training and development should always be seen as positive business activities. Negativity is a danger when training is put in place to help remedy an individual’s performance problems. There are those individuals who are either incompetent, lazy, or lack the aptitude for certain tasks. It is legitimate to ask why they were ever employed in the first place. If, on the other hand, an individual is having performance problems due to a lack of training in the requisite skills, it is beholden on the organization to provide the necessary training. If there is then no improvement, the organization will have a legitimate right to institute disciplinary procedures. Unfortunately there are still cases where it is a lack of training rather than any fault of the individual that causes problems and the individual is let go with the result that a potentially valuable employee is lost to the organization. Training should never be seen as a punishment. If it is so perceived it will be entered into half-heartedly. It is also important that the implementation of any training program – but especially one designed to address a performance problem – is flexible enough to accommodate the various different learning styles of individuals. Learning styles do not form part of the development and implementation of a training and development strategy; rather they are tactical in nature. However, the strategy should be such as to allow trainers to use methods appropriate to the individual. The strategy should not dictate how training and development are to be carried out, as this will depend on individual trainers, individual employees, and the circumstances at the time. The strategy is about what needs to be done whilst the actual training itself is tactical. Richard Pettinger, the UK-based writer on human resources and general management topics, has considered some of the reasons why organizations do not undertake the training they should and why much training is often ineffective. In Mastering Employee Relations (2002), he comments that for many organizations training and development are seen as costs to be borne rather than investments to be made (Pettinger 23). He further comments that too many organizations load the responsibility for training and development onto already overworked front-line staff. He concludes that this lack of status and resources for training and development explains why employees do not always value training and development opportunities. He notes, correctly although unfortunately, that training budgets are often the first to be cut in times of crisis. In the early 1990s, at the time of the Gulf War, airlines had a similar downturn in sales as that following September 11, 2001. Many of them slashed their training budgets. British Airways did not and reaped considerable benefit in the following years as they had trained staff with high morale able to capitalize on the upturn in air travel following the end of the conflict (Murrell and Meredith 56). Training and Development as Agents of Change Doing new and better things requires those involved to accept and benefit from change. Change almost always requires people to do something new, and this often means that they need to acquire new skills. Training and development strategies need to recognize the fear that change can produce – a fear that is often caused by the individual asking, “Can I actually do this?” Training needs to precede change and then run alongside it. If training only follows change it will involve a constant process of trying to catch up. Training before and during change can help alleviate fear and build confidence; training that is only implemented after the change begins is likely to increase fear and lead to a loss of individual confidence. Jim Stewart (65) believes that the role of the trainer is not just to provide skills but also to act as a change agent. To do this, trainers need a clear understanding of the direction the organization is heading in so that their work can be proactive rather than reactive. Stewart sees training and development as a major avenue for the management of the change process. Empowerment through Training and Development Empowerment is the process of releasing the full potential of employees in order for them to take on greater responsibility and authority in the decision-making process and providing the resources for this process to occur. The greater the individual’s skills, the easier it is for the organization to empower that individual. Empowerment does not rely on skills alone. The individual needs confidence in his or her own ability and a belief that the organization will provide the necessary physical and emotional support. Development programs often have empowerment as a by-product. As the individual goes through a development program, he or she gains greater knowledge and usually wishes for opportunities to use the new knowledge and skills. He or she is likely to demand empowerment and a sensible organization should acquiesce, as we all do better when we believe we are empowered and have ownership. Mentoring and coaching are seen by many, including Kenneth L Murrell and Mimi Meredith, as important parts of the empowerment process (34). They are an important part of the link between training and development and empowerment. Bill Ginnodo (21) points out that facilitating and coaching are more effective than directing and controlling. The former are partnerships, the latter one-way relationships. People usually learn more in a partnership than in an “us and them” relationship. He also makes the very valid point that nothing is more empowering than providing employees with skills training to do their jobs well. It should be added that this is not just empowering, but also rewarding to the organization and the employee. Role of Training and Development in Recruitment and Retention: Organizations wish to recruit the most talented individuals possible and, provided that they show signs of fulfilling their potential, retain them in order to recoup the investment in the individual that the organization has made. All organizations need to train staff at some time or other whether this is carried out in-house or by an external provider. Not all organizations see the need or are prepared to spend money on developing staff. Providing development opportunities gives recognition to the individual and recognition, as Herzberg (1962) showed, is one of the most powerful motivators there is. Development does not just provide new skills and ways of thinking – it can also motivate the individual. The training and development strategy of an organization inputs into the organization’s recruitment and retention policies in two ways. First, there is little point in recruiting an individual with potential but who lacks the particular skills for the job if there are no procedures in place to provide training. It is unlikely that every potential employee will have all the skills that are required for the job and thus it is important that recruitment policies are supported by training. Secondly, more and more talented individuals are seeking to work for organizations that have good training and development policies. Providing a development opportunity for an individual may make the difference as to whether the individual stays or goes. Organizations that invest in their employees are seen as good places to work due to the positive relationship such investment implies. Managers who look beyond the current job a person is doing and who then provide training and development opportunities for that individual are showing a commitment to the individual’s future. Tulgan comments on the lament of many managers: “We’ve spent all this money training this individual and now they’ve left for another company” (Tulgan 12). This happens, but organizations that invest in their people are more likely to retain them and also to attract higher caliber applicants for positions. A key part of a training and development strategy has to address the question, “How can we ensure that the skills etc. that an individual has gained through training and development are disseminated for the benefit of the whole organization?” A small company in the UK county of Oxfordshire used to encourage those who had attended training to give briefings on what they had learnt to their colleagues (Lessem 65). They also encouraged mentoring and coaching so that skills could be passed on and thus retained within the organization. Fig. 1: The strategic training and development cycle: Success Stories of Organizations that Invested in Training and Development: KODAK: Kodak is a name recognized across the globe and is almost synonymous with photography. George Eastman, the founder of Kodak, was born 1854 in upstate New York. Leaving school at 14, Eastman had little grounding in science and technology. Kodak, as a company, invests very heavily in its human resource. The investment in its people is seen as an integral part of the company’s strategy of remaining in the forefront of the photographic and allied industries. Kodak operates a huge range of development programs and training opportunities. In addition to programs for existing staff, Kodak also provides internships for students. These internships generally last for 10 weeks and are available to those registered on relevant degree programs from bachelor degrees to doctorates. A core value stated by Kodak is the respect, integrity, and opportunities provided for personal development within the organization. Each employee at Kodak works with his or her supervisor or manager to develop an Employee Development Plan (EDP) (Kodak Website). The EDP is designed to assist the employee in meeting personal goals within the context of the business needs of Kodak. The Kodak Company has different programs in store for the development and learning advancement of its people. For instance, GMRP or Global Manufacturing Rotation Program provides an opportunity for staff with an engineering degree and up to three years’ experience in one of the following disciplines: mechanical, chemical, electrical, industrial, or manufacturing. The program is designed to develop future technical and manufacturing leaders by offering manufacturing-focused learning, consisting of both formal and also experiential learning events. The objectives of these learning events are to: (1) broaden the individual’s understanding of Kodak’s business opportunities; (2) establish a personal network of resources to support the individual’s career; and (3) enhance the individual’s social and leadership skills. Apart from GMRP, Kodak also has personalized employee development plan. This plan is intended to assist the individual to develop the skills and competencies necessary to succeed in Global Manufacturing at Kodak, including core and specialized training based on individual areas of interest and specific assignments. Core training includes: (1) a general Kodak orientation; (2) manufacturing process overview through tours and training; (3) quality, reliability and lean manufacturing; (4) education on Kodak processes; and (5) people and leadership skills. FAMOUS GROUSE: The Famous Grouse is the brand name of one of the world’s most popular whiskies. It is a genuine Scotch whisky as can be seen by the spelling – had it come from that other great home of whiskey – Ireland – it would have been spelt with an “e.” Highland Distillers, the distillers of The Famous Grouse, is headquartered in the ancient capital of Scotland – Perth – and is part of The Edrington Group, based in Glasgow, Scotland, from where the Group directs the international sales and marketing of its premium Scotch whisky brands. Best known amongst these are The Famous Grouse, Cutty Sark, and The Macallan Single Highland Malt. The organization realized that their growing and sophisticated customers needed highly trained staff to provide memorable experience. Hence, the company launched training and development strategy entitled “Passport to Success” (Burkitt and Zeally 265) The core program was intended to be completed before the opening of The Famous Grouse Experience in 2002 and thereafter for all new hires. In addition to the core program there is also a personal development section that is ongoing. The Passport to Success is divided into six destinations that the individual must “visit,” plus the personal development section. The destinations are those that an individual working in The Famous Grouse Experience needs to be competent in. It should be noted that the destinations are not all whisky-related but also include local knowledge. The overall strategy of The Famous Grouse Experience is to provide the most enjoyable and informative way of learning about whisky (and the Famous Grouse brand in particular) and its importance to the culture and economy of Scotland. By including much more than just product knowledge within the training and development strategy it can be seen how that strategy is nested within and supportive of the overall strategy. By commencing training and development in advance of the attraction’s opening it was ensured that the staff was ready and prepared on day one. This may sound like common sense, but many organizations commence new operations before the staff are fully trained and suffer bad publicity for their lack of foresight. The local and national press comment on The Famous Grouse Experience has been highly positive, as has customer feedback. CANON: The name of the Japanese electronics company Canon is known throughout the world for a range of cameras, photocopiers, printers, and others. The corporate philosophy of Canon is kyosei, meaning living and working together for the common good (Dyer 34). In an attempt to play its part in developing kyosei, not just in Japan but also in the countries where its products are sold, Canon believes it should establish good relations, not only with its customers and the communities in which they operate, but also with nations, the environment, and the natural world. This involves considering the level of environmental management and undertaking environmental activities to contribute to the society. In order to achieve this Canon has embarked upon a program to raise the awareness of all employees regarding the importance of the environment and to encourage them to take the necessary environmental measures at the workplace and at home. In Japanese culture there are not the clear distinctions between work and home prevalent in the West. In order to train personnel to lead environmental activities at operational sites and workplaces, Canon offers environmental education to employees of different ranks and provides a variety of programs and seminars to nurture environmental specialists, and encourages employees to participate in external lectures and training programs (Dyer 101). This commitment to the environment may be costly, but Canon is so wedded to the concept of kyosei that any cutting back on training for environmental awareness would be seen as a breach of the company’s core philosophy. Works Cited Aguinis, Herman and Kurt Kraiger. “Benefits of Training and Development for Individuals and Teams, Organizations, and Society.” Annual Review of Psychology, 60 (2009): 451-474. Print. Burkitt, Hugh and John Zeally. Marketing Excellence: Winning Companies Reveal Secrets of Their Success. Hoboken, NJ: Wiley, 2008. Print. Dyer, Constance E. Canon Production System: Creative Involvement of the Total Workforce. California: Productivity Press, 1987. Print. Ginnodo, Bill. The Power of Empowerment. Arlington Heights, IL: Pride Publications, 1997. Print. HR Magazine. Strategic Training and Development: A Gateway to Organizational Success. Mar. 2008. Web. 18 Apr. 2011. Kodak Website. Employee Development. n.d. Web. 18 Apr. 2011. Lessem, Ronnie. Development Management: Principles of Holistic Business. Oxford: Blackwell, 1990. Print. Murrell, Kenneth and Mimi Meredith. Empowering Employees. New York: McGraw-Hill, 2000. Print. Pettinger, Richard. ExpressExec Global Organizations. Oxford: Capstone, 2002. Print. Stewart, Jim. Managing Change through Training and Development. Philadelphia: Kogan Page, 1991. Print. Thompson, Robert. The Psychology of Thinking. London: Penguin Books, 1974. Print. Tulgan, Bruce. The Manager’s Pocket Guide to Generation X. Amherst, MA: HRD Press, 1997. Print. Read More