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Thursday, August 17, 2017

Training and Management Development

Unit – IV: Training and Management Development
Meaning and definition of Training
Training refers to the imparting of specific skill, abilities and knowledge to  employee. System and practices get outdated due to new discoveries in technology, including technical, managerial and behavioral aspects. In this context training enhances the knowledge, skills and attitudes of employees to increase efficiency and effectiveness on the prsent job as well as expected future job.
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program.
Objectives/purpose/goals of training and development
Defining training objectives in both qualitative and quantitative terms helps in evaluating and monitoring the effectiveness of training. Involvement of top management is necessary in order to integrate training objective with organizational objectives. Employees will definitely learn best when objectives of the training program were clearly stated to them, objective means the purpose and expected outcome of training activities.
1.       To impart basic knowledge and skill to new entrants required for intelligent performance of definite task in order to induct them without much loss of time.

2.       To assist employees to function more effectively by exposure of latest concepts information and techniques and development of skills required in specific fields including production, purchase, marketing, logistics, information technology etc.
3.       To broaden minds of supervisors. Sometimes, narrowness of outlook may arise in supervisors because of specialization. In order to correct this narrowness they are provided with opportunities and interchange of experience.
4.       To build second line of competent employees and enable them to occupy more responsible positions as situation emerge.
5.       To prepare employees to undertake different jobs in order to enable redeployment and maintain flexibility in workforce so that ever changing environment of market can be met and downturns can be managed without loosing experienced employees.
6.       To provide employees job satisfaction, training enables an employee to use their skill, knowledge and ability to fullest extent and thus experience job satisfaction and gain monetary benefits from enhanced productivity.

7.       To improve knowledge, skills, efficiency of employees to obtain maximum individual development.
8.       To fulfill goals of organization by securing optimum co-operation and contribution from the employees.
Steps in Training process.
The steps of Training Process are as under:
a)      Organizational Objectives and Strategies: The first step in the training process is an organization in the assessment of its objectives and strategies. What business are we in? At what level of quality do we wish to provide this product or service? Where do we what to be in the future? Its only after answering these and other related questions that the organization must assess the strength and weakness of its human resources.
b)      Needs Assessment: Needs assessment diagnoses present problems and future challenge to be met through training and development. Needs assessment occurs at two levels i.e. group level and individual level, an individual obviously needs training when his or her performance falls short or standards that is when there is performance deficiency. Inadequate in performance may be due to lack of skills or knowledge or any other problem
c)      Training and Development Objectives: Once training needs are assessed, training and development goals must be established. Without clearly-set goals, it is not possible to design a training and development programme and after it has been implemented, there will be no way of measuring its effectiveness. Goals must be tangible, verifying and measurable. This is easy where skilled training is involved.

d)      Conducting Training Activities: Where is the training going to be conducted and how?
Ø  At the job itself.
Ø  On site but not the job for example in a training room in the company.
Ø  Off site such as a university, college classroom hotel, etc.
e)      Designing training and development program: Who are the trainees? Who are the trainers? What methods and techniques? What is the level of training? What are the principles of learning?  Where to conduct the program?
f)       Implementation of the training programme: Program implementation involves actions on the following lines :
Ø  Deciding the location and organizing training and other facilities.
Ø  Scheduling the training programme.
Ø  Conducting the programme.
Ø  Monitoring the progress of the trainees.
g)      Evaluation of the Results: The last stage in the training and development process is the evaluation of the results. Since huge sums of money are spent on training and development, how far the programme has been useful must be judge/determined. Evaluation helps determine the results of the training and development programme. In the practice, however organizations either overlook or lack facilities for evaluation.

Methods of determining training needs / Areas of Training
1. Management audit method:
a) Environmental assessment- environmental (political-legal, economic, socio-cultural, technological) changes are identified to determine training needs.
b) Objectives, strategies and structure change- training needs are identified to manage such changes.
2. Task analysis method: Collection and analysis of task related information- performance standards for each task are set- details are found about how tasks are done- training needs are identified for effective task performance. Job description, job specification, job performance standard
3. Performance analysis method
a) Organizational performance method- specifies desired performance standard. Overall performance such as- goal achievement, production performance, quality control, sales performance,cost, absenteeism, labour turnover,accident rates etc. It determines the overall training needs.
b) Employee performance analysis- identifies actual performance on the current job. Performance deficiencies and problem faced by the employees are identified to determine training needs through- employees performance appraisal reviews, career planning discussion, exit interview, performance test etc.
4. Supervisory recommendation method: In this method supervisor identify gap in knowledge and skills and recommend needed training for the employees.
5. Training need survey method: In this method direct questioning is used to gather opinion about training needs through individual survey (each employee), group survey (group of present employees, former employees and supervisors). The result of survey becomes training needs. Competency survey- experts are asked to give opinion on desired competencies to perform the job effectively. This desired competencies determines training needs.
Various Methods for Training
Methods of training operating personnel/factory workers
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
There are different methods of training for operating personnel (factory workers). Training these workers becomes important because they handle equipment worth crores of rupees.
1. On the job training method: In this method workers who have to be trained are taken to the factory, divided into groups and one superior is allotted to every group. This superior or supervisor first demonstrates how the equipment must be handled, and then the worker is asked to repeat whatever he has observed in the presence of the supervisor. This method makes it easy for the employee to learn the details about specific equipment. Once the worker studies the first equipment thoroughly the supervisor moves on to the next equipment and so on.
2. Apprenticeship training: In this method both theory and practical session are conducted. The employee is paid a stipend until he completes training. The theory sessions give theoretical information about the plant layout, the different machines, their parts and safety measures etc. The practical sessions give practical training in handling the equipment. The apprentice may or may not be continued on the job after training.
3. Vestibule training: In this method of training an atmosphere which is very similar to the real job atmosphere is created. The surroundings, equipment, noise level will be similar to the real situation. When an employee is trained under such conditions he gets an idea about what the real job situation will be like. Similarly when he actually starts doing the job he will not feel out of place. This method is used to train pilots and astronauts. In some places graphics are also used to create the artificial surroundings. This method involves heavy investment.
4. Job rotation: In this method the person is transferred from one equipment to the other for a fixed amount of time until he is comfortable with all the equipments. At the end of the training the employee becomes comfortable with all the equipment. He is then assigned a specific task.
5. Classroom method: In this method the training is given in the classroom. Video, clippings, slides, charts, diagrams and artificial modules etc are used to give training.
Methods of training for managers/methods of managerial development/executive development:
A) On the job method: On the job method refers to training given to personnel inside the company. There are different methods of on the job training.

1. Job rotation: This method enables the company to train managerial personnel in departmental work. They are taught everything about the department. Starting from the lowest level job in the department to the highest level job. This helps when the person takes over as a manager and is required to check whether his juniors are doing the job properly or not. Every minute detail is studied.
2. Planned progression: In this method juniors are assigned a certain job of their senior in addition to their own job. The method allows the employee to slowly learn the job of his senior so that when he is promoted to his senior job it becomes very easy for him to adjust to the new situation. It also provides a chance to learn higher level jobs.
3. Coaching and counseling: Coaching refers to actually teaching a job to a junior. The senior person who is the coach actually teaches his junior regarding how the work must be handled and how decisions must be taken, the different techniques that can be used on the job, how to handle pressure. There is active participation from the senior.
Counseling refers to advising the junior employee as and when he faces problems. The counselor superior plays an advisory role and does not actively teach employees.
4. Under study: In this method of training a junior is deputed to work under a senior. He takes orders from the senior, observes the senior, attends meetings with him, learns about decision making and handling of day to day problems. The method is used when the senior is on the verge of retirement and the job will be taken over by the junior.

5. Junior board: In this method a group of junior level managers are identified and they work together in a group called junior board. They function just like the board of directors. They identify certain problem, they have to study the problem and provide suggestions. This method improves team work and decision making ability. It gives an idea about the intensity of problem faced by the company. Only promising and capable junior level managers are selected for this method.
B) Off the job training method: Off the job training refers to method of training given outside the company. The different methods adopted here are
1. Classroom method: The classroom method is used when a group of managers have to be trained in theoretical aspects. The training involves using lectures, audio visuals, case study, role play method, group discussions etc. The method is interactive and provides very good results.
2. Simulation: Simulation involves creating atmosphere which is very similar to the original work environment. The method helps to train manager handling stress, taking immediate decisions, handling pressure on the jobs etc. An actual feel of the real job environment is given here.
3. Business games: This method involves providing a market situation to the trainee manager and asking him to provide solutions. If there are many people to be trained they can be divided into groups and each group becomes a separate team and play against each other.
4. Committee: A committee refers to a group of people who are officially appointed to look into a problem and provide solution. Trainee managers are put in the committee to identify how they study a problem and what they learn from it.
5. Conference: Conferences are conducted by various companies to have elaborate discussions on specific topics. The company which organizes the conference invites trainee manager and calls for experts in different fields to give presentation or lecture. The trainee manager can ask their doubts to these experts and understand how problems can be solved on the job.
6. Readings: This method involves encouraging the trainee manager to increase his reading related to his subject and then ask him to make a presentation on what he has learned. Information can be collected by trainee manager from books, magazines and internet etc.
7. In basket training: In this method the training is given to the manager to handle files coming in and to finish his work and take decisions within a specified time limit. The trainee manager is taught how to prioritize his work, the activities which are important for his job and how to take decisions within limited time limit.

Significance/Importance or Advantages of training programs/training to the company and employees:
The following are the advantages of training program to the company:
1. Increase in efficiency of worker: Training programs can help workers to increase their efficiency levels, improve quality and thereby increase sales for the company.
2. Reduced supervision: When workers have been formally trained they need not be supervised constantly. This reduces the work load on the supervisor and allows him to concentrate on other activities in the factory.
3. Reduction in wastage: The amount of material wasted by a trained worker is negligible as compared to the amount of material wasted by an untrained worker. Due to this the company is able to reduce its cost its cost of production.
4. Less turnover of labour: One of the advantages of the training program is that it increases the confidence of employees and provides them with better career opportunities. Due to this employee generally do not leave the company. There by reducing labour turnover.
5. Training helps new employees: A person, who is totally new to the company, has no idea about its working. Training helps him to understand what is required from him and helps him to adjust to the new environment.
6. Union management relations: When employees are trained and get better career opportunities. The union starts having a possible attitude about the management. They feel that the management is genuinely interested in workers development. This improves union management relations.
The following are the advantages of training program to the employee

1. Better career opportunities: Training programs provide the latest information, develops talent and due to this the employee is in a position to get better jobs in the same company or other companies.
2. High rewards: Effective training programs result in improved performance. When performance appraisal is done excellent performance from the employee is rewarded by giving him incentives and bonus.
3. Increased motivation: Employees who have been trained are generally more confident as compared to others. Since their efforts will be rewarded in future they are very much interested in improving their performance. Therefore we can say that their motivation levels are very high.
4. Group efforts: Training programs are not only technical programs but are also conducted in areas like conflict management, group dynamics (formal and informal groups), behavioral skills, stress management etc. this enables employees to put in group effort without facing problems that groups normally face. In other words training teaches people to work in a group.
5. Promotion: People who attend training programs learn from them and improve themselves are generally considered for promotion. Thus training increases chances of promotion.

Management or Executive development
All those persons who have authority over others and are responsible for their activities & for the operations of an enterprise are managers. Any activity designed to improve the performance of existing managers to provide for a planned growth of managers to meet future requirements is management development.
According to Flippo “executive development includes the process by which managers and executives acquire not only skills and competency in their present job but also capabilities for future managerial tasks of increasing difficulty and scope.” 
In simple words, Executive development or management development is a systematic process of learning and growth by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in their organization effectively and efficiently.
The characteristics of executive development are as follows:
a)      Executive development is a planned and organized process of learning.
b)      It is an ongoing and never ending exercise.
c)       Executive development is a long term process as managerial skills can not be developed overnight.
d)      It aims at preparing managers for managers.
The programme of executive development aims at achieving following purposes:
a)      To sustain good performance of managers throughout their careers by exploiting their full potential.
b)      To understand economic, technical, and institutional forces in order to solve business problems.
c)       To acquire knowledge about problems of human resources.
d)      To think through problems which may confront the organization now or in the future.
e)      To develop responsible leaders.
f)       To inculcate knowledge of human motivation and human relationships.
g)      To increase proficiency in management techniques such as work study, inventory control, operations research and quality control.
Process of executive development:

1. Analysis of development needs: First of all the present and future development needs of the organization are ascertained. It is necessary to determine how many and what type of executives are required to meet the present and future needs of the enterprise.
2. Appraisal of the present managerial talent: A qualitative assessment of the existing executives is made to determine the type of executive talent available within the organization.
3. Planning individual development programmes: Each one of us has a unique set of physical, intellectual and emotional characteristics. Therefore, development plan should be tailor-made for each individual.
4. Establishing training and development programme: The HR department prepares comprehensive and well conceived programmes.
5. Evaluating developing programs: Considerable money, time and efforts are spent on executive development programmes. It is therefore natural to find out to what extent the programme’s objective has been achieved.
Importance of Executive Development
Executive development is more future oriented. It is more concerned with education than is employee training. In today’s competitive environment, an organization has to be concerned about the development of supervisors, middle level managers and top-level executive. Executive development is important for the following reasons: -
1)      Technological changes: Now a days the technology is getting change very rapidly. Many advanced and automatic machines have been bringing in present organization. So the managers should have high-quality working knowledge of the use of modern technological machines and equipment. It can be possible by developing the managers for the use of new opened machines. It enables managers to face problems related to technology and institution.
2)      Increase in size of organizations: The size of the organizations is increasing day by day. With the increase in size the complexity is also increasing. So the executives or managers need to be developed to deal with the troubles of the bulky and complex organizations.
3)      Lack of trained managers: There is scarcity of the trained managers and it is quite difficult to recruit the experienced and qualified managers. As a result it is very important to develop the brilliant employees by a disciplined development process.
4)      Social and cultural changes: The social and cultural environment is getting changed rapidly. The managers must have brought up to date the knowledge of the sociology-cultural background to understand the people intentions and actions towards us. Executives need training and education to understand and adjust to changes in socio-economic changes.
5)      Better relation with labours: Given the knowledge era, labour management relations are becoming increasingly complex. In such situation, managers not only need job skills but also behavioural skills in union negotiations, collective bargaining, grievance redressal, etc. These skills are learned through training and development programmes.
6)      Training and development of professional managers: With the recognition that managers are made not born, there has been noticeable shift from owner managed to professionally managed enterprises, even in family business houses like Tata. That is also indicated by the lavish expenditure incurred on executive training by most of the enterprises these days.

As regards the importance of management development, the renowned behavioural scientist Peter Drucker opines that, “an institution that cannot produce its own managers will die. From an overall point of view, the ability of an institution to produce managers is more important than its ability to produce goods efficiently and cheaply”. In short, the importance of executive/ management development in an organisation can best be put as: anything minus management development in an organisation mounts to nothing.