Training and development is an integral part of human resource management. This is mainly because it imparts skills and experience required for higher productivity. Human resource management is responsible for conducting employee training and development. Ideally, it involves applying of principles aimed at recruiting, training, compensating and developing employees in an organization. These are usually done to maximize effectiveness of the organization and its employees.
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Human resource is divided into different categories that work together to achieve efficiency. These include recruitment, performance management, retention, payroll and industrial relation, as well as training and development. However, among these, training and development forms the core of human resource management.
This is mainly because it works to reduce randomness as well as ensure that learning happens in a structured manner. Several methods have been utilized in achieving the best training programs. However, these programs need evaluation to determine their efficacy. This can only be done through evaluation process and design.
Training and development programs require evaluation to ensure that the company moves forward. This paper will establish why training and development is essential in human resource management. It will also explore methods of training, analyze its cost benefits and study a case on the same (Noe, 2006, p.15).
Why Training and Development is important in Human Resource Management
Training and development is essential in any company. This is mainly because it forms the backbone of human resource. Without training and development, achieving efficacy is almost impossible. Moreover, it helps in imparting organizational culture and orientation into the company.
The former enables employees to improve work in line with company’s organizational structure, which helps in smooth running of activities. Similarly, the latter ensures that behavioral change or learning is done in a structured manner. This in turn helps in strengthening organizational culture and hence improved productivity. Training and development is therefore very important as it helps the organization to achieve its objectives (McNamara, 2011, p. 1).
Training and development is usually conducted for a variety of purposes. This is often done when conducting training on a particular topic of interest to the organization, testing a fresh performance system and when employees change roles. In addition, it can be utilized for employee professional development or as a standard for improvement, among others.
In this regard, training and development of employees escalate morale, job satisfaction, employee motivation, efficiency in productivity and hence higher profitability. Furthermore, it minimizes employee turnover, increases innovation, capacity to embrace new technologies and diversity. It is also important to note that training and development enhances risk management as well as image of the company (Advameg, Inc., 2011, p. 1).
Training Delivery methods in a large organization
Training and development involves a number of phases. These include need analysis, development, evaluation, implementation and design. The phases are usually followed and utilized based on their need. The diagram figure below indicates the phases of training.
Fig.1. Phases in a Training process
Source: Advameg, Inc.
Large corporations require effective training methods since the company’s sustainability depends on it. They compose of materials and techniques utilized by trainers in order to structure a learning process. Ultimately, they are aimed at achieving various objectives, which determine the methods of training delivery.
In order to come up with the best training delivery method, a manager needs to analyze company needs. After which, he/she can move to design process where appropriate method is chosen concerning expected deliverables. This requires division of methods into behavioral and cognitive methodologies based on the learning objectives desired.
Cognitive methods are usually given in written form and this helps in establishing relationships or rules of performance. On the other hand, behavioral methods enables trainees to practice whatever is learnt in simulated or real situations. The latter has an advantage of providing learners with hands on experience as it involves physical training, which improves memorization of activities learnt (Advameg, Inc., 2011, p. 1).
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As a manager in a large organization, I should analyze company needs before deciding on the best training delivery methods. Moreover, it is also important to consider the kind of materials available for training. Cognitive training delivery methods include lectures, discussions, case studies and e-learning.
On the other hand, behavioral methods include business games, behavior modeling, role-plays, case studies and in-basket techniques as well as use of simulators. Large organizations require various skills because of diversity and company goals. It is therefore important that a manager integrate both methods (behavioral and cognitive) in method delivery (Blanchard & Thacker, 2003, p. 25).
Analysis of cost benefits of training and development program
Whenever training is done, it is important that a company evaluate return on training. This enables the company to determine cost benefits of continuing with the program. In addition, it enables companies to measure training deliverables. Evaluation of training is also important in emphasizing capacity of such programs to improve performance. Evaluation of training programs can be conducted in many ways, some of which include time series and reversal.
It is also important that companies evaluate return on their investments. This helps such companies to determine viability of their training programs. Among the methods utilized in determining return on investment for training programs is cost-benefit-analysis. Cost-benefit-analysis involves evaluation of economic benefits of any given program.
To achieve this, accounting techniques, which explore the benefits and cost of training, are utilized. The following table gives an example of cost benefit analysis for Al Baraka banking group in Bahrain (Dessler, 2005, p. 304). It can be observed that cost per employee is $ 1036.50.
|Direct costs||Specification||Amount in $|
|Instructor salaries (5 instructors for 10 days)||10*100*5||5,000|
|Fringe benefits (20% of salary)||0.20*100*5||100|
|Travelling||5*5* 10 days||250|
|Clerical and administration salaries (2 for 10 days)||25*10*2||500|
|Fringe benefits (20% of salary)||5*10*2||100|
|Pre and post training materials||100||100|
|Program purchase fee||2000||2,000|
|Top management support and time (10% of direct, indirect and development costs)||975|
|Compensation for trainees|
|Salaries and benefits for the period of training (20)||50*20*10days||10,000|
|Total training cost||20,725|
|Cost per trainee||1,036.50|
Therefore, since Return on investment (ROI) = benefits of the program/cost * 100 and assuming that return is $2,000,000, then ROI gives
100,000/1,036.50*100 = 96.05018% (4 dp), this means that for each $1 invested, the return is about $ 96.1dolar over and above it.
Also the Net savings after the program = benefits – cost, the benefits of training can be given as follows
|Time saved 5000/month for 12 months (20 employees)||5000*12*20||1,200,000|
|Improved efficiency and reliability 1000/month||1000*12*20||240,000|
|Increase in new and regular customers||30000*12||360,000|
|Accuracy in service 10000per annum||10000*20||200,000|
From the formula: Net savings after the program = benefits – cost, we shall have
(Benefits) $2,000,000 – (Cost) $ 20,725 = (Net savings) $1,979,275.
The case study describes a situation at Apex Door Company. Jim Delaney is the president of this company and faces a recurrent problem with his employees. Whenever he tells them what to do, they do as they choose. In the process, argument erupts between the supervisor, Jim and the employee. These problems are in door design and order processing departments. The latter is more profound as clerks do not understand how to fill orders in the multipage forms (Dessler, 2005, p. 304).
What do you think of apex’s training program? Could you explain why employees do things their way?
Apex’s training program is more like a traditional system, which involves transfer of skills from an outgoing employee to an incoming one. This kind of training program utilizes few resources and is inclined to fail. This is mainly because information transferred undergoes changes over the years as it passes from one employee to another. Moreover, the program is not innovative and technology friendly. Ultimately, employees are poorly trained and this results in issues (Dessler, 2005, p. 304).
What role should job description play in Apex?
Job description is important in outlining the specific roles expected of an employee. This is very important in selection of potential employees as it maximizes efficiency. In this case, job description is not prioritized and this brings with it the said issues. Job description should ensure only the right individual with capacity to perform duties is recruited (Dessler, 2005, p. 304).
What to do in order to improve training process
Apex Company requires human resource management techniques that emphasizes on its roles of training and development. Mr. Jim should therefore start by recruiting a human resource manager with proven record of undertaking training and development. After which, all the company needs should be examined and a training delivery method chosen. The next step involves designing a program or plan on training these employees.
It may involve separation of employees according to their job duties. For instance, clerks would require less time in training as compared to engineers. The management should also integrate both cognitive and behavioral methods of delivery in order to find a balance for each job description. Finally, development, Implementation and evaluation of the program should follow (Dessler, 2005, p. 304).
Training and development is important in all organizations. It forms the core responsibility of human resource management. Therefore, every organization should have a form of training program that ensures organizational structures are followed. Moreover, it is important that each company evaluate its programs. This will help companies to determine return on investment. This can be achieved by conducting a cost-benefit-analysis (KSL Consulting Ltd, 2011, p. 1).
Advameg, Inc. (2011). Training Delivery Methods. referenceforbusiness.com. Web.
Blanchard, P.N., & Thacker, J.W. (2003). Effective Training: Systems, Strategies, and Practices (2nd ed.). Englewood Cliffs, NJ: Prentice Hall.
Dessler, G. (2005). Human Resource Management: Reinventing the wheel at Apex Door Company. London, LDN: Pearson, pp. 304.
KSL Consulting Ltd. (2011). Training Delivery Methods. ksl-training.co.uk. Web.
McNamara, C. (2011). Employee Training and Development: Reasons and Benefits. managementhelp.org. Web.
Noe, R. (2006).Employee Training & Development (4th ed.). New York, NY: McGraw-Hill/Irwin.