Training and Development free essay sample

Terri Spiro, an experienced budget analyst at Martin Manufacturing Company, has been charged with assessing the firm’s financial performance during 2006 and its financial position at year-end 2006. To complete this assignment, she gathered the firm’s 2006 financial statements (below and on the facing page). In addition, Terri obtained the firm’s ratio values for 2004 and 2005, along with the 2006 industry average ratios (also applicable to 2004 and 2005). These are presented in the table on page 88. Analyze the firm’s current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm’s liquidity, activity, debt, profitability, and market. A: From a cross-sectional series I summarized this based upon my findings. The companys P/E ration is very low, implying that consumers and investors and thinking that the company is doing well. According to the M/B ratio, the hope in the future success of the company is dwindling. 2 Strategic HRM works to meet the needs of the business and management (rather than just serve the interests of employees); to link human resource strategies / policies to the business goals and objectives; to find ways for human resources to add value to a business and to help a business gain the commitment of employees to its values, goals and objectives. 3 Efficient Training and Development must be given a strategic platform. It is based up rather than separated from other aspects of HR strategies like structure, culture, manpower planning, appraisal, recruitment and reward strategies. Training and Development is a combined role often called Human Resources Development (HRD), meaning the development of â€Å"human† resources to remain competitive in the marketplace. Training focuses on doing activities today to develop employees for their current jobs and development is preparing employees for future roles and responsibilities. 4 The HR Training is a definite as a part of the HR Development. The HR Training Program has to be clearly linked with other important HR components as HR Strategy, HR Planning and HR Development as the HR team cannot be trained in different skills and competencies from that requested by the HR Strategy. The HR Training Program cannot exist like a single activity with no direct link to the real job of Human Resources in the organization. The HR Training Program is the main training and development activity of the HR team apart from other minor tasks. The HR Training helps to connect the real job of HR staff with the HR Strategy as the output of HR is visible and clearly recognized by the organization. In fact designs of HR Training Program are unique to every company as it has to be tightly connected with the HR Strategy. Performance Management is a systematic process where the organisation involves its employees in improving organisational effectiveness by focusing them on achieving the organisations mission and strategic goals. Performance Management improve planning, coaching and reviews. 5 An important aspect of strategic human resource management is employee development. This process begins when a company is recruiting and interviewing prospective employees. Development gives employees the opportunity to develop skills, knowledge and attitudes that help themselves to achieve personal objectives. 6 In fact the HR development is the least strategic as it is related to the personal Development of the individual member of HR. Through development both employees and organisations gain as employees add skills and knowledge while learning organisations gain from more competitive workers. The HR Development is an investment which is to be done in detail focusing on the gains to Human Resources and the organisation. The HR Development has the aim to improve the performance and preparation of the HR staff to the challenges coming in the future. The HR people are to analyse the current situations and identify gaps that are to be improved to ensure better customer satisfaction. The HR Training Program and the HR Development are closely connected as they use the same sources of the information; basically focus on the gaps found. It is of essential important to always connect the developmental activities of the HR with the general HR training program. 7 Human Resource Management is the art of managing Human Workforce in an organisation in an optimum manner which is beneficial to the employee as well as the organisation in achieving the organisational goal. It is a ‘Hard’ management style. HRM aims at providing an optimal working environment for employees to fully exploit their skills to achieve the company’s intended output. The terms human resource management and human resources (HR) have mainly replaced the term personnel management as a description of the processes involved in managing people in organizations. Human Resource Development is more organisational oriented and HRD is function more independent with separate roles to play. As human resources management usually applies to big companies, it has sub categories, among which is HRD. HRM therefore is concerned with the human resources function (training) whilst HRD deals with the development of the entire organisation (development). Human resource development (HRD) is a ‘soft’ management style and a more proactive part of human resource management. It copes with the development of employee’s personal skills, his career development, and training, updating him with the latest technology, helping him explores his potential and develops his skills which would prove beneficial to both the employee and the organization in achieving the organization goals. 8 Human Resource Development (HRD) serves peoples needs by developing resources that provide opportunities. 9 HRD aims at developing a finer workforce so that the company and individual employees may achieve their work goals in the customers’ service. 10HRD therefore develop personalities rather than personnel. Ideally companies are to have a balanced mix of HRM and HRD development activities. In a large organization, HRM and HRD functions will be tackled by different people but for employees HRM and HRD may seem to have parallel but separate functions. Ex a new employee is recruited by HRM but trained by an HRD officer. For a large organization to function productively, HRD and HRM must collaborate closely. HRM executives must work close to employees to identify gaps for development which then are to be passed to HRD personnel to be addressed at a strategic level. Reversely for a strategic development to be done in the workplace the HRD team are to advice HRM people on such advances. This mix will lead to what is called the ‘Learning Organization’; A Learning Organisation is one in which people at all levels, individuals and collectively, are continually increasing their capacity to produce results they really care about. [Richard Karash] Training is necessary not only to help new employees get integrated in the organisation but also to help existing employees to perform at their best. Training is the systematic modification of behaviour through learning which occurs as a result of education, instruction, development and planning experience. HR Training Program is focused on building the professional HR team. The training objectives have to be linked to corporate objectives, policies and initiatives of the firm. Training is a costly task as it involves the cost of training and the trainees but this will finally lead to more satisfaction among employees and so less rejections. The training cycle defines Training as a systematic process of intervention to improve current knowledge, abilities and skills of the workforce; this involves 6 stages: 1. Identify Learning Required (TNA- Training need analyses): This stage includes the training required to improve current knowledge, abilities and skills of the workforce. This can be completed through personal task and organisational level of analysis. The data can be collected from target participant, management, and even from customers using data gathering methods like surveys, interviews and observation at work. The TNA results as important input in designing the training program. TNA should be done regularly to ensure that training would respond to the needs of the trainees. 2. Set learning objectives (Policy): This defines the set standards to be achieved by the training program if training is regarded successful. 3. Determining Training strategy: In this stage it is of a potential importance to analyse the organisation present situation and identify the priority training needed so that the HR staff can set out strategies for meeting those needs. 4. Design and Plan training: Training programs are to be predetermined. It starts with the identification of the goals and objectives that should be achieved and then determine the topics to be covered and the suitable training methodologies. 5. Implementation (programmes): Once the staff, course, content, equipments, topics are ready, the training is implemented. In this stage one is expected to deliver the programme; Train, lead and administer. 6. Evaluation: This last stage of the training process requires the judgment of the accomplishment of the training activity. The evaluation is concerned with the effectiveness of the training to consider whether the particular training has paid off. According to Kirkpatrick (1998), there are four levels of evaluating training programs. These are the: 1) Reaction: measure feedback of participant’s right after training 2) Learning: determine what the participants learned during the training program 3) Behavioural change: determine the changes of attitudes of trainees after the training which is usually observed at the workplace and 4) Impact to organisation: measure the effect of training on the function and its impact on the entire organisation. 11 Successful organizations know that to conquest in today’s competitive fair they must attract, develop, and hold a talented and fruitful staff. The purpose of designing and implementing a performance management system is to ensure performance happens by design and not by chance. The performance management system is a tool to implement strategy. Performance management is divided in 3: 1. Objectives of job individuals are defined 2. Target for next 12 months are clearly defined 3. And Training and Development need and carrier inspiration. Successful organizations get their superiority from a performance management system that communicates the organization’s goals and objectives, combine individual and team performance goals with the organization’s strategic objectives and provides on-going response for staff development. 12 Looking into a practical example, Audi has developed a training and development programme designed for technicians at the company. Technicians are appraised by their managers to discover their personal training and development needs. They then work with a professional consultant on development training activities as well as attending relevant courses either at the Audi training centre or on external courses. This ensures that Audi employees work according to the organisations objectives and business strategy to achieve the company goals and missions. HRM relates to every aspect of the way in which the organization interacts with its people. The HR Strategy defines the background for all HR activities with the value added. HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Therefore Human Resource Management is a way of management that links people-related activities to the strategy of a business or organisation also referred to as ‘Strategic HRM’. Strategic human resource management may be regarded as an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes.