Are Training Sessions Beneficial for Employees - Essay Example

Report to discuss whether the training session will be beneficial for employees in our organization or would investments on other motivationalforces is more useful Summary of the report: One can conclude that employees are not motivated by training only. Various levels of motivation have to be fulfilled before you can motivate employees. These levels can be fulfilled by using Maslow's ideas. However, training is another factor to motivate employees and to help them achieve organization goals. However, all training sessions are not necessarily fruitful unless your speaker knows about your organization in detail. Even when your speaker knows about the organization well, the training session would not reap any reward for the firms if employees are too casual and their attitude is not right toward the speakers. Similarly, rather than investing money on training money firms are coming up with innovative methods to boost the productivity of their employees. These methods are by giving your employees good working condition, giving them better machinery to work with, increase supervision through the use of modern technology like CCTV, giving them chance of recreational activities and by creating better information flow networks. Purpose of the report: This is to evaluate the proposed training session on the directive of managing director according to the letter which HR department received on 12 April 2007. The reference number for this letter was "xHRMD". We will evaluate this training session under following techniques: Cost and Benefit Analysis Traditional Theories Costs of alternatives We hope that our work will be helpful for the managing director into making a decision whether to go forward with idea or to choose any other alternative in the light of our report. Final Report Draft: To: Managing Director From: Human Resource Department Subject: To evaluate the proposed training session and other associated issues. Date: 18 April 2009 Respected Sir, As I told you in our meeting that training and development represent a planned effort by an organization to facilitate its employees learning new job related behaviors. Training usually involves involve two things, a) it involves teaching how to do their job efficiently that is taking less times in the tasks they do, and b) it involves teaching the employees skills necessary not only for present job but also to prepare them for future jobs. However, as managing director has said that the training session is going to improve the morale of the company, this may be wrong as training session might not improve the morale of the employees as many business managers believe that it is nothing but rewards that improve the motivation level of the employees.1 Motivation basically is the when employees are feeling happy and are satisfied with their jobs. The MD of the company might argue that when employees know how to do their work well they may be happy and satisfied. But the argument given by the managing director might not always be right. Suppose, the employees are working in their present job from decades and know each every thing about the job and know how to do their job well, so one might say that teaching them might not motivate them. However, what will motivate them in the current scenario is good pay or financial security, job security and other needs as suggested by one of the management guru Maslow. Maslow argued that there are levels of motivation and after each level is fulfilled there is a need to fulfill another one to motivate the workers. Suppose, when a person joins the work, at that time he will not have that much money and might need more money to build property and life. At that point, he believes, that money will be the best motivator. You pay your workers well and they will be motivated. Once he has achieved the level of financial security he'll move on to the other level. Now he might want job security i-e he will not want promotion in job and knowing that he will not be fired. Now these factors will become his motivating force. One he has achieved that then he will be motivated by social security, that is his future is safe and by making new friends at work. For this, the employer needs to provide recreational times to workers so they may mingle and gel well together in the organization. After that he moves on to the level of self-actualization which is that you feel that you have done a good job and being praised for a job well done. So, training only motivates employees when they are at the level of self-actualization and have achieved all other motivational levels. So, MD should first see that all employees or the ones he is trying to target have reached the level of self-actualization otherwise theirs is not point in spending so much for the training session and other method of motivation could be implied so that employees work to meet the organization objectives. For example, this money of $250,000 could be spent on giving financial security to employees who are on that level of motivation hierarchy as suggest by Maslow. They can also be used to create pension funds for the employees to make their futures secure. They can also be used to organize other social events to fulfill the social needs of employees. 2Therefore, the point that I would put forward to the MD would be first to see that whether our workers have achieved other level of motivational hierarchy and then to take a wise decision. However, MD might argue that helping employees will benefit only the worker and will not teach them ways to meet organization objectives. The point here that could be put forward to the MD is that these employees are the assets of the company and anything that develops them and is good for them is ultimately good for the company. Studies have suggested that motivated employees work longer hours, are more productive, take less leaves and are better prepared to meet the challenges in the market place and above all motivated employees are found to be more loyal to the firms and do every effort which might benefit the firm. However, if these employees are to be given training then these factors should be kept in mind. Every single member of staff needs to be aware of the organisational objectives and to understand how individually they play their part in achieving them. The person, or more often the small group of people, responsible for setting organisational objectives, has to take many diverse issues into account when setting objectives. These issues may include some or all of the following; profit; shareholders; employees; customers; distributors; suppliers; society; and the environment. During this training activity participants examine how objectives set an organisational level provide direction and motivation at all other levels. They also address the crucial point of how organisational objectives are currently communicated in their own organisations and how this could be improved. Now, these employees could be trained on the lines as established above. In order to appraise whether, the training session proposed by the MD would be beneficial for the firm or not, a cost-benefit approach could be used. This approach takes into account all the costs that are will be incurred in organising a training session and the benefits obtained from this session. The costs incurred will be the fees of Jack Black, the arrangements and some implicit costs such as opportunity cost of training, loss of output by employees and opportunity cost of funds used in the training programs. The benefit that might be gained will be improved productivity, boosted morale, efficiency and employees would now be more aware of the organisational objective. So, after preparing this cost benefit analysis, we will find out how whether this project would be good for the company or not. Only if benefits are greater than cost, such a project should be undertaken. However, applying a cost benefit approach might not be a suitable approach to appraise the project for a number of reasons. It will be very difficult to quantify the morale boosted by this training session. It will be near impossible to suggest to the MD whether the morale boosted by employees is greater or whether the fees paid to Jack Black is higher. So, you cannot appraise a project with this approach. Furthermore, the increase in productivity will only be an estimate and not an actual figure until after few months and this estimate might turn out to be a wrong one. So, you cannot again use this approach for the training session being hosted by Jack Black. Similarly, the lesson taught by Jack Black might be theoretical and may be no use for the firm. As we all know every single firm whether is different from other even if the two firms are in the same industry and at the same stage of production. Similarly, organization objective of two firms may have a very wide gap. Some firms want to achieve growth while others want to stay stagnant. Some want more sales while others want more brand name and brand loyalty. Some firms want to produce by heavy automation to increase their profits while other wants to provide jobs to the social and use labor-intensive methods of production. So, Jack Black will only be able to stand out and make an impression on employees if he is given the data about the firm. The objectives that the firm pursues, the values of the organization and what methods are used by the firm to motivate its workers. After all this information has been given, still there might be a chance that Jack Black might not be able train people, because it all depends on the listeners how they take the speakers word. If they perceive it as useless then the most cunning advices given by this gentleman would be considered as insane. So, on our part we should also try make them realize how important Jack Black's lecture could be for them and for the organization they are working for. This could very well be change their lives and may open the doors of promotion and higher wages for them and only thing that they have to do is to concentrate on Jack Black's words and to apply his instructions in their day-to-day jobs to be successful.3 Nowadays, a common culture among firms is that they are moving away from fragmentation and going towards team work by organizing work in projects. Any effort done as team makes five times more impact if worked alone. So, the company should tell Jack Black to include this part in his speech. This part will reinforce the company's objectives. For example, if one person is working to achieve a specific company goal he might not be able to achieve it if other five do not pay heed to this goal. So, everyone in the organization should work for achieving the goals together if the organization wants to make any impact. The cost figures and suggestions where firms could invest there 25000 pounds rather than having this training session by Jack Black could be: Giving them good working environment to work in. According to studies, it has been found that employees productivity doubles when they are been given good condition to work in. A hot work-centre would only exhaust the employees early robbing their productivity. Nowadays many firms are installing air-conditioner in their work areas so that heat could not get better of their employees and their employees work for long hours in good and pleasant conditions. Adding central air conditioning to an existing forced-air heating system in a 2,000-square-foot house averages $3,500 -$4,000, and can be done by two technicians in 2-3 days, with little or no change to the existing ducting; if ducts must be added, the work time doubles, as does the cost to $7,000 -$8,000.4 Providing employees easy to use and easy to learn machinery. Old machinery is very complicated and difficult to work with. If employees are given better tools and machinery their productivity is definitely going to be doubled without any investment needed on training. Firms could invest like 25000 pounds to replace all their outdated machinery and this would be better than having a training session. As this would enable firm to reduce its costs as well as employees will be at ease handling the newer and easy technology. Recreation Area for employees within workplaces. Nowadays, many firms focus on giving entertainment sessions to their employees during work hours. For this these firms have created recreation areas consisting of many indoor games, gyms and saloons, so that their employees feel happy and at home even during work hours. Many firms are installing CCTV cameras at work places to ensure supervision and to show employees that head office or top management is watching their every single move and hence if they are lazy or do not do their work well they can be sent home. A good CCTV would cost around 10,000 pounds for a decent CCTV system with installation and this could very well increase the productivity of employees. Many firms are using this money to create better information system between various departments. Many firms who face pooled interdependence among departments have contact each other occasionally and any communication breakup could lead to halting of work and can cost a firm thousand of dollars. So, firms are using better communication system to boost the productivity of various departments. Recommendations: Sir, In the light of our above report, we recommend you the following steps to be taken: So, instead of investing on training firms could invest their 25,000 pounds in the above discussed methods in bullets. All these methods are going to double the firms productivity and hence profits. This means that return on the investments on above methods would be more than 50% which would be more than 25000 bucks spent on training. Similarly, all the above methods are also going to boost the morale, which is going to further increase the productivities of employees and the profits for the firm. So, this means that any investments on the above methods is going to give more than 50% of return on investment and firms should go for these methods. But one might argue that there might be some interference costs reduced by training. Interference costs are social costs that are incurred on the society as a result of actions by an organization. These costs occur when the firms are not efficient and society has to pay higher price for a product than the efficient price. Training teaches employees to be more efficient and they produce at a low price. So, this reduces the interference costs for the society as the product is now cheaper and the society now will have to pay lower prices. Similarly, now employees would be more efficient using less of society's resources and therefore the firm would be more efficient and interference costs will be further reduced as society now will have resources saved for the production of other commodities they demand. So, training might reduce the interference costs and could lead to allocative efficiency but might not be beneficial for the organization directly and firm should try to improve the internal employment to yield direct benefits for themselves.5 Bibliography: Management Reference Book, Published in 2001 Management, 4th Edition, Richard L. Daft, pp.431-435, The Dryden Press Publication A Level, Business Course Book, Published by Hodder Headline Group, Published in 2006 IGCSE Business Studies, Latest Edition, Karen Borrington and Peter Stimpson, Chapter 13-15, CIE Endorsed Book. O Level Business Course Book, 2003, Published by The Press Syndicate of University of Cambridge Economics for CIE, Collins Bamford, 3rd Edition, CIE Endorsed book, pp. 66-67 Cost of Air Conditioning: Quotes and Estimates, Visited on 18 April 2009 www.oldtreehouse.com Academic Website for Business Studies, Picked Data on 15 April 09 www.tutor2u.net/Economics Read More