literature review on employee training and development

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Introduction The field of Human Resource Management covers numerous aspects related with the proper management and enhancement of competent human resource of any organization. These aspects include matters such as recruitment and selection, performance appraisal, stress management, labor relations and so on. Likewise, the topic of employee training and development cannot be left out as well. An organization cannot obtain optimum benefit from even its high performing employees if sufficient training and orientation is not provided to them. In regard to new recruitment and selection too, carefully selecting employees does not guarantee that they’ll perform effectively. Even high potential employees cannot do their job effectively if they don’t know what to do how to do it. Thus, in order to ensure a fine and competent performance from employees, it is must on every firm’s part to provide training and also career development opportunities to their employees. Training is an educational process that conveys relevant and useful information that inform participants and develop skills and behaviors that can be transferred back to the workplace. The goal of training is to create an impact that lasts beyond the end time of the training itself and the focus is on creating specific action steps and commitments that focus people’s attention on incorporating their new

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Literature review on employee training and development.

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Page 1: Literature Review on Employee Training and Development

Introduction

The field of Human Resource Management covers numerous aspects related with the

proper management and enhancement of competent human resource of any organization.

These aspects include matters such as recruitment and selection, performance appraisal,

stress management, labor relations and so on. Likewise, the topic of employee training

and development cannot be left out as well.

An organization cannot obtain optimum benefit from even its high performing employees

if sufficient training and orientation is not provided to them. In regard to new recruitment

and selection too, carefully selecting employees does not guarantee that they’ll perform

effectively. Even high potential employees cannot do their job effectively if they don’t

know what to do how to do it. Thus, in order to ensure a fine and competent performance

from employees, it is must on every firm’s part to provide training and also career

development opportunities to their employees.

Training is an educational process that conveys relevant and useful information that

inform participants and develop skills and behaviors that can be transferred back to the

workplace. The goal of training is to create an impact that lasts beyond the end time of

the training itself and the focus is on creating specific action steps and commitments that

focus people’s attention on incorporating their new skills and ideas back at work.

Generally, in organizations training is offered as skill development means for individuals

and groups. Similarly, the concept of employee development is closely related to

employee training. Training involves an expert working with learners to transfer to them

certain areas of knowledge or skills to improve in their current jobs (McNamara, 2008).

Employee development means encouraging employees to acquire new or advanced skills,

knowledge, and view points, by providing learning and training facilities, and avenues

where such new ideas can be applied. Development is a broad, ongoing multi-faceted set

of activities (training activities among them) to bring someone or an organization up to

another threshold of performance, often to perform some job or new role in the future

(McNamara, 2008).

Page 2: Literature Review on Employee Training and Development

Training is job or task-oriented. It aims at enabling individuals to perform better on the

jobs they are currently doing. Development on the other hand, is career oriented rather

than job-oriented. It aims at preparing people for higher responsibilities in the future

(Asare-Bediako, 2002). Organizations must therefore have the responsibility to develop

and implement training and development systems and programmes that best help them to

achieve their objectives.

Purpose of Training and Development

According to Quinn, Anderson and Finkelstein (1996), the goal of training is for

employees to master the knowledge, skill, and behaviours emphasized in training

programmes and to apply them to their day-to-day activities. They contend that recently it

has been acknowledged that to gain competitive advantage, training has to involve more

than just basic skills development. Reasons for emphasizing the growth and development

of personnel include:

Creating a pool of readily available and adequate replacements for personnel who

may leave or move up in the organization.

Enhancing the company's ability to adopt and use advances in technology because

of a sufficiently knowledgeable staff.

Building a more efficient, effective and highly motivated team, which enhances

the company's competitive position and improves employee morale.

Ensuring adequate human resources for expansion into newprograms.

Research has shown specific benefits that a small business receives from training

and developing its workers, including:

Increased productivity.

Reduced employee turnover.

Increased efficiency resulting in financial gains.

Page 3: Literature Review on Employee Training and Development

Literature Review

An organization survives if it is performing well in the environment by being profitable

but if it fails to do so the organization may not survive. And worse is the decay of both

human and physical structures (Manguennandongo, 2002). The rationale of training is not

only on the ordinary employees but as well as to their executives to develop skills

required in the diversification and competitiveness by making the organization

successful. The benefits fall entirely for the employees and for the private companies.

The target of the program being implemented in the companies, increases the competency

in the market, and improves the living condition of the employees (ADBG, 2008). Under

the participation of the stakeholders, the guidelines and implementation of training in the

employees can achieve positive results. The workforce development is focused on

attracting, developing, and retaining the best of the people from the broadest business

practices to meet the objectives or goals of the companies. Intentionally, training and

development are provided for the employees with best of the career opportunities in

different industry and encourages their individual growth and achievement (Kruger,

2008). According to Casse and Banahan (2007), the different approaches to training and

development need to be explored. It has come to their attention by their own preferred

model and through experience with large Organizations. The current traditional training

continuously facing the challenges in the selection of the employees, in maintaining the

uncertainty related to the purpose and in introducing new tactics for the environment of

work and by recognizing this, they advising on all the problems, which reiterates the

requirement for flexible approach. Usually the managers have the choice to select the best

training and development programme for their staff but they always have to bear in mind

that to increase their chances of achieve the target they must follow the five points

highlighted by Miller and Desmarais (2007). According to Davenport (2006), mentioned

in his recent studies that it’s easy to implement strategy with the internet supported

software.

Page 4: Literature Review on Employee Training and Development

Technical training is the process of teaching employees how to more accurately and

thoroughly perform the technical components of their jobs. Training can include

technology applications, products, sales and service tactics, and more. Technical skills

are job-specific as opposed to soft skills, which are transferable.

On-the-job training Methods

Under these methods new or inexperienced employees learn through observing peers or

managers performing the job and trying to imitate their behavior. These methods do not

cost much and are less disruptive as employees are always on the job, training is given on

the same machines and experience would be on already approved standards, and above

all the trainee is learning while earning. Some of the commonly used methods are:

Coaching, Mentoring, Job Rotation, Job Instruction, Technology, Apprenticeship,

Understudy.

Off-the-job Training Methods

Off-the-job training methods are conducted in separate from the job environment, study

material is supplied, there is full concentration on learning rather than performing, and

there is freedom of expression. Important methods include: Lectures and Conferences,

Vestibule Training, Simulation Exercises, Sensitivity Training, Transactional Training.

Technical or Technology Training

Depending on the type of job, technical training will be required. Technical training is a

type of training meant to teach the new employee the technological aspects of the job. In

a retail environment, technical training might include teaching someone how to use the

computer system to ring up customers. In a sales position, it might include showing

someone how to use the customer relationship management (CRM) system to find new

prospects. In a consulting business, technical training might be used so the consultant

knows how to use the system to input the number of hours that should be charged to a

client. In a restaurant, the server needs to be trained on how to use the system to process

orders. Let’s assume your company has decided to switch to the newest version of

Page 5: Literature Review on Employee Training and Development

Microsoft Office. This might require some technical training of the entire company to

ensure everyone uses the technology effectively. Technical training is often performed in-

house, but it can also be administrered externally.

Skills Training

Skills training, the third type of training , includes proficiencies needed to actually

perform the job. For example, an administrative assistant might be trained in how to

answer the phone, while a salesperson at Best Buy might be trained in assessment of

customer needs and on how to offer the customer information to make a buying decision.

Think of skills training as the things you actually need to know to perform your job. A

cashier needs to know not only the technology to ring someone up but what to do if

something is priced wrong. Most of the time, skills training is given in-house and can

include the use of a mentor. An example of a type of skills training is from AT&T and

Apple, who in summer 2011 asked their managers to accelerate retail employee training

on the iPhone 5, which was released to market in the fall.

Training, Performance and Productivity

The quality of employees and their development through training are major factors in

determining log-term profitability and optimum performance of organizations. To hire

and keep quality employees, it is good policy to invest in the development of their skills,

knowledge and abilities so that individual and ultimately organizational productivity can

increase. Traditionally, training is given to new employees only. This is a mistake as

ongoing training for existing employees helps them adjust rapidly to changing job

requirements.

Impact of training and development

Nowadays the necessity for dedicated professionals has increased with the rising

demands of business and the level of competency. It is significant to have professional

knowledge on how to handle complicated situations. Career development schools make

Page 6: Literature Review on Employee Training and Development

certain that people take advantage in the training given to them. The advantages are based

on the quality, standardization and methodology applied. It assists in building confidence,

promotion of personal development and is a focus for quality staff. Superiority is a major

concern in any business and career development. It is not limited to the products but the

performance of the professionals as well. Lack of quality affects standard of performance,

however career development takes the chance to develop on the defects and bring quality

products.

The review has so far revealed the importance and purpose of training in an

organization, and how it contributes to productivity. The essence of training needs has

also been explained. How and why training needs should be assessed was not

overlooked. The fundamental bases for which personnel may be chosen or selected for

training, the kinds of training methods are identified. In summary, this study is designed

descriptively to find out whether there exists any setback in the training and development

schemes in Ghana Ports and Harbors and Authority, and thus offer recommendations as

to how these setbacks may be reduced if not entirely eliminated.

Training is seen as a key instrument in the implementation of Human

Resource Management policies and practices, particularly those involving cultural change

and the necessity of introducing new working practices. First of all the organization will

need a training policy that specifies what training means to the organization, who

qualifies for training, how training should be conducted and so on. The next step is to

analyze the training needs of the organization in relation to the organization’s strategy

and equate it with the needs of the individuals within it.

A variety of methods could be adopted to carry out a training needs analysis. Job

analysis, interview with managers and supervisors and performance appraisal are few

methods commonly used. Despite the available variety of methods, an organization has

to be cautious when selecting training methods for its use. A careful use of training

Page 7: Literature Review on Employee Training and Development

methods can be a very cost-effective investment. Although one of the most important

stages in the training process, evaluation and monitoring is often the most neglected or

least adequately carried out part.

An effective training program is built by following a systematic, step-by step process.

Training initiatives that stand alone (one-off events) often fail to meet organizational

objectives and participant expectations. In today’s post we outline the five necessary

steps to creating an effective program from assessing needs to evaluating and revising

training.

1) Assess Training Needs: The first step in developing a training program is to

identify and assess needs. Employee training needs may already be established in

the organization’s strategic, human resources or individual development plans. If

you’re building the training program from scratch (without predetermined

objectives) you’ll need to conduct training needs assessments.

2) Set Organizational Training Objectives: The training needs assessments

(organizational, task & individual) will identify any gaps in your current training

initiatives and employee skill sets. These gaps should be analyzed and prioritized

and turned into the organization’s training objectives. The ultimate goal is to

bridge the gap between current and desired performance through the development

of a training program. At the employee level, the training should match the areas

of improvement discovered through 360 degree evaluations.

3) Create Training Action Plan: The next step is to create a comprehensive action

plan that includes learning theories, instructional design, content, materials and

any other training elements. Resources and training delivery methods should also

be detailed. While developing the program, the level of training and participants’

learning styles need to also be considered. Many companies pilot their initiatives

Page 8: Literature Review on Employee Training and Development

and gather feedback to make adjustments before launching the program company-

wide.

4) Implement Training Initiatives: The implementation phase is where the training

program comes to life. Organizations need to decide whether training will be

delivered in-house or externally coordinated. Program implementation includes

the scheduling of training activities and organization of any related resources

(facilities, equipment, etc.). The training program is then officially launched,

promoted and conducted. During training, participant progress should be

monitored to ensure that the program is effective.

5) Evaluate & Revise Training: As mentioned in the last segment, the training

program should be continually monitored. At the end, the entire program should

be evaluated to determine if it was successful and met training objectives.

Feedback should be obtained from all stakeholders to determine program and

instructor effectiveness and also knowledge or skill acquisition. Analyzing this

feedback will allow the organization to identify any weaknesses in the program.

At this point, the training program or action plan can be revised if objectives or

expectations are not being met.

Objectives of the study

To know about NTC's Employees training policy.

To know about type of training provided.

To know about the criteria for trainee selection

To know about the basis of training provided

To study the impact of training on employee and organizational development.

Page 9: Literature Review on Employee Training and Development

Methodology

The primary data is collected through interview which consists of approximately 10

open-ended questionnaires. Secondary data is obtained from articles, books and internet.

Introduction to the organization: Nepal Telecom

Operation of any form of telecommunication service in Nepal almost dates back to

century. However, Nepal telecom was formally established as Nepal Telecommunication

Corporation in B.S 2032 as a fully owned government corporation. After 29 long years of

service in the telecommunications sector, Nepal Telecommunication Corporation was

transformed into Nepal Doorsanchar Company Limited from Baisakh 1, 2061. Nepal

Doorsanchar Company Limited is a company registered under the companies Act 2053.

However the company is known to the general public by the brand name Nepal Telecom

as registered trademark. With its head office located at Bhadrakali Kathmandu, Nepal

Telecom has branches, exchanges and other offices in 184 locations within the country.

Being the largest telecommunication service provider in the country, it has also been

continuously ranked as the top most tax payer since the last few years.

The capital structure of the company is as follow

Government of Nepal

91.05

%

Employees 4.50%

General Public 3.97%

Nagarik Lagaani

Kosh 0.48%

Total

100.00

%

Investments in different sectors

Page 10: Literature Review on Employee Training and Development

Non current Investment 2068/69 2068/69

Investment with citizen investment trust 1273151693 1780731542

Government Security 3691275000 2879125000

Unamortized premium on government

security

77647065 47302720

Corporate securities 20000000 120000000

Balance with bank interm deposit 15627400000 17031153000

Investment in upper Tamakoshi

hydropower

540000000 635400000

Loan in Upper Tamakoshi 920621988 2502081556

Investment in Trishuli 3B Hydroproject 5000000 10000000

Total 22155095746 24987793818

Current Investment 2068/69 2068/69

Government Security 12500000 812150000

Corporate security 212318000 0

Total 224818000 812150000

The total current asset in 2068/69 is Rs.22155095746 and Rs.24987793818 in fiscal year

2069/70. The total noncurrent asset in 2068/69 is Rs.224818000 and Rs.8121150000 in

fiscal year 2069/70.

Investment on training and development

Particulars 2068/69 2069/70

Training and development Rs. 86985005 Rs.102761770

Page 11: Literature Review on Employee Training and Development

Major tasks of HRM department in NTC:

Strategic Human Resource Planning

HR Auditing and Needs Assessments

Workforce Planning

Change Management

Performance Management

Total Compensation, Benefits & Rewards

Industrial & employee Relation services

Through the research, the following findings about the NTC are made:

Policies regarding training and development

The HR training policy of NTC is elaborated and its workforce consists of nearly 500

employees dispersed around the whole country. The company physically has a plan to

train around 60 percent of its employees every year i.e .approximately 3000 employees.

For participating in any kind of training program, the employees themselves have to take

the imitative by filling online form. the employees, then should have to be recommended

for training by the head of the office, after which it goes to director for approval. After

this, the recommendation is goes to concerned training center. Furthermore, NTC also

has a policy of training for a particular employees maximum of two times in a year(i.e.

the time duration between two training is minimum six months.) similarly, while

selecting employees for training program, the selection is usually done in a lot of twenty

members. These members usually selected from the different regional offices at a time.

Hence, all the main objective of the training and development programming NTC is to

ensure maximum participation of employee's for their own as well as the organization's

objective.

Page 12: Literature Review on Employee Training and Development

Types of training

In NTC, training is basically categorized into two parts; technical training and

administrative training. However, the main focus is given to technical training such as

system training. For this purpose, NTC has its own training facility in the country.

However, for advanced types of training, employees are also sent abroad or resource

persons are brought from abroad. Mostly on the job training is provided but very few off

the job training is also provided. For developing the employees physical fitness physical

training is provided where they can go to gym. Other further training like leadership

training, yoga training is provided for reducing stress and providing motivation. Those

employees who are not involved in regular training (from 2-3 years) i.e. employees from

administration department are provided refreshment training. This type of training is

provided for refreshing the employees from monotonous work.

Impact of the training

Obliviously as in maximum cases, the training program does have a positive impact in

the overall employees and organizational functional.

Impact on employees: The training programs provide a definite boost to

employee's skills and working capacity. It also increases their adjustment skills

when getting transferred from one department to another. For instance, if an

employee is transferred from GSM system to ADSL, the training provided fills

the requirement gap and hence helps in smooth transition. Similarly, it also

increases interaction among employees which creates a comfortable working

environment in the office which increases employee

coordination.Further,additional findings are as follows:

Career competencies

Page 13: Literature Review on Employee Training and Development

Employee satisfaction Employee retention Employee Performance

Impact on organization:The training program also has a positive overall impact

on the functioning of the organization. It helps the organization to improve its

relationship and network management through its employees.

Conclusion

In conclusion, we can say that NTC is one of the leading telecommunication service

provider of our country. NTC has been training their employees since long time and they

have used two types of training method i.e on-the-job and off-the-job for training their

employees.

Through our research we came to know that among 5500 employees, 60% of the

employee i.e. 3000 employees per year are selected for training and is normally focused

on technical part rather than administrative part. Training like system training is given to

employees by sending them abroad. For getting training facility, interested candidate

need to register online and there should be recommendation from higher level executives

whether the participants are fit for the registered training or not. Other employees who do

not get regular training are provided refreshment training so that they can reduce stress

and get motivated for completing their work.

Page 14: Literature Review on Employee Training and Development

NTC has been providing training to their employees so that they can cope up with the

changing working procedures, get refreshed from monotonous work and improve their

conceptual, technical and analytical skill. This is not only beneficial for employees as it

has positive impact on the organization as well. Training and development programs have

helped NTC in keeping their employees up to date and thus have helped in increasing the

productivity of those employees. Rather than expenditure, NTC is investing on training

and development for effectiveness of their work.