TRAINING AND

DEVELOPMENT 512
Year 1 Semester 2

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 FACULTY OF BUSINESS AND MANAGEMENT
SCIENCES

STUDY GUIDE

MODULE: TRAINING AND DEVELOPMENT 512

(2ND SEMESTER)

Copyright © 2023
Richfield Graduate Institute of Technology (Pty) Ltd
Registration Number: 2000/000757/07
All rights reserved; no part of this publication may be reproduced in any form or by any means, including photocopying
machines, without the written permission of the Institution

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TABLE OF CONTENT
Topics
Section A: Preface V
1. Welcome v
2. Title of Modules v
3. Purpose of Module v
4. Learning Outcomes v
5. Method of Study Vi
6. Lectures and Tutorials vi
7. Notices vi
8. Prescribed & Recommended Material vi
9. Assessment & Key Concepts in Assignments and Examinations vii
10. Work readiness programme x
11. Work integrated learning xi
TOPIC 1: TRAINING IN AN ENTERPRISE
1.1 The training function as a sub system of an enterprise 01
1.2 The need for a training and development policy 03
1.3 Why do enterprises offer training 06
1.4 Workplace Skills Plan 06

1.5 Generalized approaches to training interventions in enterprises 07

1.6 The Training cycle 10

1.7 The place and role of the Training Function in the structure of the 10
enterprise
Assessment questions 11
TOPIC 2: TRAINING MODELS
2.1. Nadler’s model 12
2.2. The training model of camp, Blanchard, and Huszco 15
2.3. High-Impact training Models 17
2.4. Return on Investment 18
Assessment questions 19

TOPIC 3: MANAGEMENT OF TRAINING IN AN ENTERPRISE

3.1. Introduction 20
3.2 Planning 20
3.3 Organizing 21
3.4 Guidance 21

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3.5 Control 22
3.6 The need for a training and development policy 22
3.7 Training and development policy 23
3.8 Annual training plan 24
3.9 Training records and information systems 25
3.10The purpose of records 25
3.11Information systems 26
3.12SETAs and Training 28
Assessment questions 31
TOPIC 4: STRATEGIC TRAINING MANAGEMENT
4.1 The proposed strategy for determining training needs 32
4.2 Training needs analysis methods 36
4.3. Type of Training Needs 37
4.4 Human resource management and strategic planning 42
4.5 A model for strategic training management 46
4.6 An approach to strategic training management: Rothwell and Kazanas 49
4.7 Strategic Human Resource Development and key assumptions 49
4.8 Re-engineering the training function 69
4.9 Assessment questions 77

TOPIC 5: ADMINISTRATION OF TRAINING

5.1. Introduction 79
5.2. Training costs and budgets 79
5.3. Training facilities 83
5.4. Implementation of plans 87
5.5. Types of training rooms and their designs 91
5.6. Assessment questions 97

TOPIC 6: ADDENDUM 512 (A): CASE STUDY FOR TUTORIAL DISCUSSION. 99

TOPIC 7: ADDENDUM 512 (B): ASSESSMENT 101
TOPIC8: ADDENDUM 512 (C): TYPICAL EXAMINATION QUESTIONS &
MARKING GUIDELINES 105

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SECTION A: PREFACE

1. WELCOME

Welcome to the Faculty of Business and Management Sciences at Richfield. We trust you will find the
contents and learning outcomes of this module both interesting and insightful as you begin your academic
journey and eventually your career in the business world.

This section of the study guide is intended to orientate you to the module before the commencement of
formal lectures.

The following lectures will focus on the common study units described:

2. TITLE OF MODULES, COURSE, CODE, NQF LEVEL, CREDITS & MODE OF DELIVERY

2nd Semester

Title Of Module: Training &Development

Code: T&D_512
NQF Level: NQF 5
Credits: 10
Mode of Delivery: Contact / Distance

3. PURPOSE OF MODULE

3.1 Training & Development 512

The purpose of this module is to enhance the student’s knowledge relating to the principles and basic
practices that governs the training and development function in an organisation.

3.2 Training & Development 512 (2nd Semester)

This module develops the students knowledge further on the concepts of Training and Development.

4. LEARNING OUTCOMES

On completion of these modules the student will be able to:

• Understand the training function as a sub-system of an organisation

• Demonstrate knowledge relating to training models
• Understand how the training and development function is managed in an organisation
• Display an understanding of how training needs are determined in an organisation
• Understand the demonstration related to the training function in an organisation

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5. METHOD OF STUDY

The sections that have to be studied are indicated under each topic. These form the basis for tests,
assignments and examination. To be able to do the activities and assignments for this module, and to
achieve the learning outcomes and ultimately to be successful in the tests and examination, you will need
an in-depth understanding of the content of these sections in the learning guide and prescribed book. In
order to master the learning material, you must accept responsibility for your own studies. Learning is not
the same as memorising. You are expected to show that you understand and are able to apply the
information. Use will also be made of lectures, tutorials, case studies and group discussions to present
this module.

6. LECTURES AND TUTORIALS

Students must refer to the notice boards on their respective campuses for details of the lecture and
tutorial time tables. The lecturer assigned to the module will also inform you of the number of lecture
periods and tutorials allocated to a particular module. Prior preparation is required for each lecture and
tutorial. Students are encouraged to actively participate in lectures and tutorials in order to ensure
success in tests, assignments and examinations.

7. NOTICES

All information pertaining to this module such as tests dates, lecture and tutorial timetables, assignments,
examinations etc will be displayed on the notice board located on your campus. Students must check the
notice board on a daily basis. Should you require any clarity, please consult your lecturer, or programme
manager, or administrator on your respective campus.

8. PRESCRIBED & RECOMMENDED MATERIAL

• Erasmus. L. 2019. Managing Training and Development in South Africa .8th Ed. South Africa: Oxford
University Press. ISBN: 9780190722142

8.2 Recommended Material: Diploma in Business Administration

• Rao,S.V. 2009. Human Resource Management: Text and Cases, 2ND edition.
• Grobler et al. 2006. Human Resources Management in South Africa. 3rd edition. London: Cengage
Learning.

• DeCenzo D. A. and Robbins S. P. Human Resource Management. 2010. 10th Edition. John Wiley
and Sons (Asia) Pte Ltd.

• Nel P., Werner A., Du Plessis., Ngalo O., Poisat P. Sono T., Van Hoek L. And Botha C. 2011. Human
Resources Management. 8th Edition. Oxford University Press Southern Africa (Pty) Ltd Cape Town

8.3 Library Infrastructure

The following services are available to you:

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 8.3.1 Each campus keeps a limited quantity of the recommended reading titles and a larger variety
of similar titles which you may borrow. Please note that students are required to purchase the
prescribed materials.

8.3.2 Arrangements have been made with municipal, state and other libraries to stock our
recommended reading and similar titles. You may use these on their premises or borrow them if
available. It is your responsibilities to safe keep all library books.

8.3.3 RGI has also allocated one library period per week as to assist you with your formal research
under professional supervision.

8.3.4 RGI has dedicated electronic libraries for use by its students. The computers laboratories, when
not in use for academic purposes, may also be used for research purposes. Booking is essential for
all electronic library usage.

9. ASSESSMENT

Final Assessment for this module will comprise two Continuous Assessment tests, an assignment and an
examination. Your lecturer will inform you of the dates, times and the venues for each of these. You may
also refer to the notice board on your campus or the Academic Calendar which is displayed in all lecture
rooms.

9.1 Continuous Assessment Tests

There are two compulsory tests for each module (in each semester).

9.2 Assignment
There is one compulsory assignment for each module in each semester. Your lecturer will inform you of
the Assessment questions at the commencement of this module.

9.3 Examination

There is one two-hour examination for each module. Make sure that you diarize the correct date, time
and venue. The examinations department will notify you of your results once all administrative matters
are cleared and fees are paid up.

The examination may consist of multiple-choice questions, short questions and essay type questions. This
requires you to be thoroughly prepared as all the content matter of lectures, tutorials, all references to
the prescribed text and any other additional documentation/reference materials is examinable in both
your tests and the examinations.

The examination department will make available to you the details of the examination (date, time and
venue) in due course. You must be seated in the examination room 15 minutes before the commencement
of the examination. If you arrive late, you will not be allowed any extra

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time. Your student registration card must be in your possession at all times.

9.4 Final Assessment

The final assessment for this module will be weighted as follows:

Continuous Assessment Test 1

Continuous Assessment Test 2 40%
Assignment 1
Examination 60%
Total 100%

9.5 Key Concepts in Assignments and Examinations

In assignment and examination questions you will notice certain key concepts (i.e. words/verbs) which tell
you what is expected of you. For example, you may be asked in a question to list, describe, illustrate,
demonstrate, compare, construct, relate, criticize, recommend or design particular information / aspects /
factors /situations. To help you to know exactly what these key concepts or verbs mean so that you will know
exactly what is expected of you, we present the following taxonomy by Bloom, explaining the concepts and
stating the level of cognitive thinking that theses refer to.

Competence Skills Demonstrated

observation and recall of information
knowledge of dates, events, places
knowledge of major ideas
mastery of subject matter
Knowledge
Question
Cues
list, define, tell, describe, identify, show, label, collect, examine, tabulate,
quote, name, who, when, where, etc.
understanding information
grasp meaning
translate knowledge into new context
interpret facts, compare, contrast
order, group, infer causes
Comprehension
predict consequences
Question
Cues
summarize, describe, interpret, contrast, predict, associate, distinguish,
estimate, differentiate, discuss, extend
use information
Application use methods, concepts, theories in new situations
solve problems using required skills or knowledge

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 Questions
Cues
apply, demonstrate, calculate, complete, illustrate, show, solve, examine,
modify, relate, change, classify, experiment, discover
seeing patterns
organization of parts
recognition of hidden meanings
identification of components
Analysis
Question
Cues
analyze, separate, order, explain, connect, classify, arrange, divide, compare,
select, explain, infer
use old ideas to create new ones
generalize from given facts
relate knowledge from several areas
predict, draw conclusions
Synthesis
Question
Cues
combine, integrate, modify, rearrange, substitute, plan, create, design, invent,
what if?, compose, formulate, prepare, generalize, rewrite
compare and discriminate between ideas
assess value of theories, presentations
make choices based on reasoned argument
verify value of evidence recognize subjectivity
Evaluation
Question
Cues
assess, decide, rank, grade, test, measure, recommend, convince, select,
judge, explain, discriminate, support, conclude, compare, summarize

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11. WORK READINESS PROGRAMME (WRP)

In order to prepare students for the world of work, a series of interventions over and above the formal
curriculum, are concurrently implemented to prepare students. These include:
• Soft skills
• Employment skills
• Life skills
• End –User Computing (if not included in your curriculum)

The illustration below outlines some of the key concepts for Work Readiness that will be included in
your timetable.

SOFT SKILLS LIFE SKILLS

• Time Management • Manage Personal Finance
• Working in Teams • Driving Skills
• Problem Solving Skills • Basic Life Support &
• Attitude & Goal Setting First Aid
• Etiquettes & Ethics • Entrepreneurial skills
• Communication Skills • Counselling skills

WORK
READINESS
PROGRAMM

EMPLOYMENT SKILLS
• CV Writing
• Interview Skills
• Presentation Skills
• Employer / Employee Relationship
• End User Computing
➢
Email & E-Commerce
➢
Spread Sheets
➢
Data base
➢
Presentation
➢ Office Word

It is in your interest to attend these workshops, complete the Work Readiness Logbook and prepare
for the Working World.

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12. WORK INTEGRATED LEARNING (WIL)

Work Integrated Learning forms a core component of the curriculum for the completion of this
programme. All modules making of the Diploma in Business Administration will be assessed in an
integrated manner towards the end of the programme or after completion of all other modules.
Prerequisites for placement with employers will include:
• Completion of all tests & assignment
• Success in examination
• Payment of all arrear fees
• Return of library books, etc.
• Completion of the Work Readiness Programme.

Students will be fully inducted on the Work Integrated Learning Module, the Workbooks & assessment
requirements before placement with employers.

The partners in Work Readiness Programme (WRP) include:

Good luck and success in your studies…

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TOPIC 1: TRAINING IN AN ENTERPRISE

1.1 Introduction Lecture 1

1.2 The training function as a sub system of an enterprise

1.3 The need for a training and development policy Lecture

1-2

1.1. 1.4 Why do enterprises offer training

1.2. 1.5 Workplace Skills Plan

Lecture 3-6
1.6 Generalized approaches to training interventions in
enterprises

1.7 The place and role of the training function in the structure of Lecture 7-10
the enterprise

TOPIC 2: TRAINING MODELS

2.5. The training model of camp, Blanchard, and Huszco Lecture 11-13

2.6. Return on Investment Lecture 14

2.7. Nadler’s model Lecture 15

TOPIC 3: MANAGEMENT OF TRAINING IN AN ENTERPRISE

3.2. Introduction

Lecture 16
3.2 Planning

3.3 Organizing Lecture 17

3.7 Guidance Lecture 18-20

3.8 The need for a training and development policy

3.6Training and development policy

Lecture 21-23
3.7Annual training plan

3.9The purpose of records

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3.10 Information systems Lecture 26

3.10 SETAs and Training

Lecture 27-28
3.11 Managerial implications of the SAQA skills development and
levies act

TOPIC 4: STRATEGIC TRAINING MANAGEMENT Lecture 29-30

4.3 The proposed strategy for determining training needs

4.4 Training needs analysis methods

4.3. Determining Training Needs Lecture 36

4.10 Human resource management and strategic planning

4.11 A model for strategic training management Lecture 37

4.12 An approach to strategic training management: Rothwell and Kazanas

4.13 Strategic Human Resource Development and key assumptions Lecture 38

TOPIC 5: ADMINISTRATION OF TRAINING

5.7. Introduction Lecture 39-40

5.8. Training costs and budgets

5.9. Training facilities Lecture 41-42

5.10. Implementation of plans

5.11. Types of training rooms and their designs Lecture 43-45

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 TOPIC 1
_____________________________________________________________

TRAINING IN ENTERPRISE
______________________________________________________

Learning Outcomes

After studying this chapter you should be able to:

▪ Outline the assumptions on which training is premised

▪ Identify the key roles of training and department
▪ Identify reasons for developing training policies
▪ Discuss the four approaches to training interventions
▪ Identify benefits that accrue to individuals as well as
organization from training

INTRODUCTION

Employee training and development is imperative for every organisation. With effective training and
development in place, organisations stand a chance of earning competitive edge in the business
environment, as training and development activities have proven to enhance employee skills, knowledge
and expertise, competencies, as well as their performance in the organisation.

1.1 THE TRAINING FUNCTION AS A SUBSYTEM OF AN ENTERPRISE

The training function is regarded as a subsystem of the human resources management function based on
the following assumptions:

1. The training function is a processing system that determines training needs, applies training
technology and expertise, and transforms untrained employees into trained employees who can
make productive contributions to the organizational objectives.
2. The primary input into a training system – training needs and untrained employees – is transformed
into an output (trained employees) by means of training processes such as analysis, design,
development and the evaluation of training.
3. As a subsystem of an enterprise, the training function is exposed to the same influences as the
other systems in the enterprise. These influences include politics, the economy and legislation.

The training function should be viewed as part of the human resources function as a whole, but should
function as a separate training department if this is affordable, because training takes place at various
levels in an enterprise and provides a support service to the enterprise as a whole.
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A critical factor is that, in order to ensure success, training practitioners must continuously monitor the
training input that is made available against the organizational objectives. This will increase the credibility
of the training department in the enterprise.

The key roles that should be present in all training departments are:

• Achievement and need analysis

• Development of curricula
• Development and obtaining of training resources
• Training per sector
• Advancement of training efficiency
• Administrative management of students

Training departments often take on the following additional duties:

• Marketing training courses and student registration systems

• Supply of training material for on-the-job training
• Supply and management of training facilities and equipment
• Organizing achievement conferences
• Representing the enterprise on professional bodies
• Trading training programmes and training material with other enterprises

The workplace in South Africa is rapidly changing as a result of changes in value systems international
competition, new technologies and participative management. According to estimates, South African
organizations (excluding palatals) spend an average of 2, 7 per cent of their payroll on training. Parastatals
spend over 4 per cent of their payroll on training, while an average of 2 per cent of payroll is spent by
manufacturing, services and trade, and less than 1, 5 per cent of payroll is spent by the construction, transport
and communication sectors. Internationally, between five to seven percent is spent by organizations in
Organization for Economic Cooperation and Development (DEeD) countries such as Australia, Greece and the
USA (for example Pfizer spent 14% payroll in 2001, Ritz Canton Hotel 10% and PWC Consulting 9.2%) (Green
Paper on Skills Development, 1997:8).

It is an unfortunate fact that the training and development of human resources in South African enterprises
has been widely neglected over the past few decades. The fruits we reap from not investing in human
resources are low productivity, redundancy of older staff members, a high staff turnover, fear of
technological advancement and an illiterate work-force. Furthermore, in difficult economic times, the top
management of enterprises usually rationalizes those departmental functions that do not have a direct
bearing on the generation of income. Training is often categorized in this way but if the return on expenditure
can be proven, this trend can be reversed.

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In this chapter the reasons for training are briefly mentioned, followed by various generalized approaches
to training interventions in enterprises. The place of the training function is discussed and the training
function as a subsystem is emphasized. To provide an overview of the total training process in an enterprise,
the models of Nadler, Camp et al. and the High Impact Training Model are discussed. This is followed by a
discussion of various aspects related to the management of training, such as planning with an emphasis on
strategic training management and training policy, as well as organizing, guiding and controlling training.
The chapter ends with a brief description of the roles of the training practitioner.

1.2. THE NEED FOR A TRAINING AND DEVELOPMENT POLICY

Training policies are developed for four main reasons:

• To define the relationship between the objectives of the organization and its commitment to the
training function
• To provide operational guidelines for management
• To provide information for employees
• To enhance public relations

The policy for training and development of an organization is influenced by a number of variables such
as (Reid and Barrington, 1997:259):

• Size, traditions and prevailing culture

• Products or services
• Economics and social objectives
• Obligations to provide continuing professional updating training, e.g. for nurses
• Top management’s view of the value of training
• The availability of information about the training needs of the organization
• The labour market and alternative means of acquiring skilled and qualified staff
• Past and current training policies and practices
• The training experience of its managers
• The caliber of its specialist training staff
• Resources that can be allocated to training
• The expectations of employees and their representatives
• Legislation, e.g. on health and safety, and government –funded schemes such as youth training

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The training policy of an enterprise refers to all employees and aims at:

• Providing induction training for all new staff and for those transferred to new departments.
• Providing day release facilities (a system whereby employees are released for training) at the
discretion of the appropriate departmental manager in consultation with the company training
officer.
• Ensuring that appropriate training is available to enable individuals to reach and, through updating
training, maintain satisfactory performance in their jobs.
• Providing the training required by those selected for promotion so that they are appropriately
prepared for their new responsibilities.

• Providing information, instruction and training to ensure the health and safety of all the employees,
reduction of accidents in the workplace.

Annual Training Plan

The training plan should therefore be drawn up with extreme care and a typical plan would comprise
the following elements:

• A detailed time plan (monthly, quarterly, and half-yearly) of the training requirements of each
department, allocated according to job classification, and number of employees involved.
• A detailed time plan of the projected training for categories of staff not permanently allocated to a
department.
• Specifications in respect of each training item for the standard to be achieved, the person
responsible for implementing it, and the training strategy to be used.
• A summary of the budget allocation in regard to training for each department and the organization
as a whole: this may be divided into training that is already underway and to which the organization
is already committed, e.g. apprentices who have already begun their apprenticeships, and other
training.

Benefits of training

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Training brings benefits to both Marks & Spencer and its employees.
Training provides a series of planned learning experiences for individuals
and builds their technical skills and business competencies. Training also
helps to improve efficiency and can motivate employees to do well. This
helps to make positive changes to the way in which they work and make
decisions. Development helps individuals use the training to meet their
individual needs and ambitions. By training and developing its staff well,
Marks & Spencer is in a position to develop a competitive advantage over
its competitors.

Business strategy
Marks & Spencer's new business strategy focuses on three main areas:
Developing value-for-money products that customers want.
Training brings new skills which help to add value to its products and
services, for example by cutting costs. This enables the company to keep
prices lower to benefit the customer.
Investing in the environment within stores. Better technical skills
in sales and stock management mean that staff can use the store to
better advantage resulting in higher sales and profitability.
Providing good customer service to look after customers. If staff
have improved skills in, for example, communication, this can have a
positive impact on customer service.

Training equips individuals with the skills they need to achieve their
targeted role in the business.

Although training is a cost to a business, it is also an investment. It helps

Marks & Spencer to link the people who have the right technical skills
and business competencies with the roles they are best able to do. It
ensures that, as a person moves from a post, he or she is succeeded by
the best possible replacement. This is at the heart of succession
management. By acquiring technical skills and business competencies,
employees can plan their career path. This gives them responsibility for
achieving their career ambitions. It also helps to create the future leaders
of the organisation.

Source: http://businesscasestudies.co.uk/marks-and-spencer/the-role-of-
training-and-development-in-career-progression/benefits-of-training-

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 and-development (accessed 09/12/2014)

1.3. WHY DO ENTERPRISES OFFER TRAINING?

Employees are trained in enterprises because it benefits both the individual and the enterprise.

The individual benefits from training in the following important ways:

• The individual can make better decisions and solve problems effectively.
• Motivational variables of recognition, achievement, growth and responsibility are internalized and
operationalised.
• Training helps people to handle stress, tension and conflict. Training increases job
Satisfaction and improves knowledge, communication skills and attitudes.

The enterprise benefits in the following important ways:

• Training improves the job knowledge and skills of employees at all levels
• It leads to improved profitability and/or better service
• It improves the morale of the workforce
• It creates a better corporate image
• It improves the relationship between superior and subordinate
• It contributes to organizational development
• It contributes to increased productivity and quality of work
• It helps to keep costs down
• It improves labour/management relations
• It improves the organizational climate
• It helps employees adjust to change
• It creates a positive climate for growth and communication

1.4 WORKPLACE SKILLS PLAN (WSP)

A WSP is formulated for each financial year and submitted to the Primary Seta for the Particular business
e.g.: An educational institution will submit their WSP to the ETDP Seta Based on the analysis of business
requirements and the skill needs of current staff, the workplace skills plan must define the skills priorities
that each workplace will pursue, the training programmes that are required to meet and deliver those
priorities and the staff who will be targeted for training -'the beneficiaries'

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A workplace skills plan is important to:

• Employers to provide a strategic basis for planning the development of the workforce and
organization for current and future prospects.
• Workers to provide opportunities for enhanced job satisfaction and promotion prospects
• SETAs to assist in the identification of imbalances in the supply and demand of skilled labour. This
information can also be used by school leavers and unemployed people to inform choices about
training options
• The government to assist in the development and review of the national skills development strategy
that must be demand-led and sensitive to labour market needs.

According to Carnevale et al. (1990:3), the minimum general skills that employers want from their
employees in addition to their technical skills are as follows:

• They must be able to learn how to learn, as this will form the basis for lifelong learning
• They must also be able to read, write and compute a crucial factor in South African enterprises
• They must not only be able to communicate effectively, but must also be good listeners
• They must be creative thinkers and problem solvers
• They must be motivated and possess positive self-esteem
• They must possess effective interpersonal skills and be effective team members
• They should be effective leaders and organizers

Annual Training Report

Is a report that is formulated at the end of the financial year and outlines all training initiatives that have
been conducted, it also shows fulfillment of the WSP.

1.5 GENERALIZED APPROACHES TO TRAINING INTERVENTIONS IN ENTERPRISES.

Reid and Barrington (1997:115) describe various generalized approaches to training interventions. Each
approach has its unique advantages and disadvantages and may be more or less successful, depending
on the circumstances in the enterprise.

1.5.1 The “Learning by Exposure” Approach

Strictly speaking, this is not an approach to employee development and training, but because learning
takes place it can be considered a management option. This approach involves individual learning,
whereby the student is assumed to gather knowledge and to use it without any help other than that
offered by colleagues. Trainers are not prepared for

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their roles, although this approach is very popular. This can, however, be changed by instructing the trainer
and by providing learning objectives against which progress can be measured, and can therefore be
developed into a useful approach.

1.5.2 The “Systems” Approach

A system is regarded as a set of interdependent components that form a unit. It is regarded as “open” if
there is interaction between the system and its environment and “closed” if there is no such interaction.
An enterprise is regarded as an “open” system because it obtains its resources (such as capital and labour)
from the environment, and is directly or indirectly affected by various environmental factors (such as
economic, legal, technological and political changes). A system should therefore obtain inputs from the
environment, process them and provide outputs to the environment in the form of products and services.

An enterprise can consist of various subsystems, all striving for the achievement of organizational objectives
by means of different organizational processes. These subsystems are arranged according to their unique
needs and include subsystems like the marketing, production, financial and human resources functions in
general. Each of these subsystems can be subdivided into sub-subsystems or sub-sub-subsystems.

How does the systems approach fit in with training and the development function? The training and
development function receives its input from the internal and external environment of the enterprise.

As far as the external environment training in the following ways:

• A decline in market share

• The changing needs of consumers
• Increased competition
• The latest technology

The economic state of a country is also an important environmental input. If the demand for the products
of an enterprise rises, this implies among other things that more employees will have to be employed and
trained. Input for training and development from the internal environment of an enterprise can be divided
into two categories:

• Technical input
• Organizational functioning

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1.5.3 The “Problem-Centered” Approach

This approach solves short-term problems and is ad hoc in nature. It is dominated by operational problems
that determine the needs of the individual or the group. This approach is often very acceptable because it
is pragmatic in nature and money is allocated for special operational needs. The success of this approach
depends on the identification of high-level skills and not just the redefinition of an operational problem.
The fact that it seems to solve real work problems and that it is cost-effective can be offset by a lack of
proper diagnosis of the problem.

Figure 22 Internal and external training and development environment

1.5.4 The “Training Process” Or “Procedural” Approach

The procedures that accompany this approach are as follows:

• The existence of a training policy

• The inclusion of training responsibilities in job descriptions
• The regular and periodic definition of training needs
• The creation of training plans
• The provision of training resources
• The implementation of training plans
• The assessment of training results

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These procedures set out the basic requirements to follow in a training intervention and are widely
used

1.6 THE TRAINING CYCLE

1.7 THE PLACE AND ROLE OF THE TRAINING FUNCTION IN THE STRUCTURE OF THE ENTERPRISE

An enterprise can consist of various subsystems that pursue the achievement of organizational objectives
by means of different organizational processes. These enterprise subsystems are organized according to
the unique needs of each enterprise and usually include subsystems such as the marketing, production,
financial and human resources functions.

Each of these subsystems can again be divided into smaller systems or sub-subsystems such as the
planning, provision, maintenance, training and development of human resources, as well as labour
relations.

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NB: The training function falls under the Human Resources Department.

It may take different forms:

• Specialist training
• Training of new entrants
• Adult learning and literacy training
• Management development

ASSESSMENT QUESTIONS

1. Give three examples of how the management in your enterprise accepts

responsibility for the training of employees.

2. Which advantages do you think could result from human resource

management being incorporated in the strategic planning of an enterprise?

3. Take a moment to consider the structure of any enterprise. Represent this

organizational structure in a diagram and highlight the training department.

4. Draw a second diagram representing different responsibilities and overall

reporting levels in your department.

5. What the advantages that will accrue to both the individual and the
organization from training?

11
 TOPIC 2
_____________________________________________________________

TRAINING MODULES
______________________________________________________________

Learning Outcomes

After studying this chapter you should be able to:

• Identify and discuss various training models including

• Nadler’s Model
• Camp, Blanchard and Huszco
• The High – Impact training model

Introduction
In this TOPIC we will briefly discuss general training models consisting of various steps, i.e.

Determining training needs and Job Analysis

Programme design
Presenting training
Evaluating training

2.1 NADLER’S MODEL

The model proposed by Nadler (1982:14) is a general model for training and views the training process
in holistic terms. This so-called “critical events model” is shown in figure 2.5.

The model contains nine steps. The steps include:

Step 1 –Identifying the needs of the enterprise

Step 2 -Evaluation and feedback
Step 3-Specifying performance
Step 4- Identifying training needs
Step 5- Formulating training objectives
Step 6 –Compiling a syllabus
Step 7 –Selecting instructional strategies
Step 8 –Acquiring instructional resources
Step 9 – Presentation of training

12
Step 1: Identifying the needs of the enterprise

A number of factors (both internal and external) affect the ability of an enterprise to survive in economic
terms and to grow. Because it is an open system, there is continuous interaction between the enterprise
and the internal and external environments. A number of factors generate needs for the enterprise and
the employees, and these include:

A change in the product or in the service provided

A change in equipment and rules
A new product or service

An important consideration during this step is that both enterprise and individual needs are taken into
account when information is gathered. Once all the interested parties have reached agreement
regarding the nature of the training needs in an enterprise, the design and implementation of a training
programme can take place.

Step 2: Evaluation and feedback

Evaluation and feedback are aspects that are central to this model, and must be regarded as continuous
processes that must be executed in each step of the training process. Continuous evaluation and
feedback ensure the accurate execution of each step.

Step 3: Specifying performance

During this step an employee’s work is analyzed to determine the content. Information on the work
being investigated can be obtained from supervisors, co-workers and the incumbents themselves. The
aim of this step is to determine work standards against which individual performance can be measured.

Step 4: Identifying training needs

This step forms a critical part of the training process. The fact that people have specific needs must be
taken into consideration when determining training needs. The essence of determining training needs
lies in determining the “gap” between the performance of the individual and the set standard. Once the
needs have been identified, the rest of the programme can be developed. The overall success of the
training programme is largely determined by the accuracy with which this step is executed.

Step 5: Formulating training objectives

Once the training needs have been determined, the training objectives are formulated. A distinction can
be drawn between general training objectives, which are directed at defining student performance in
general terms, and specific training objectives, which are directed at satisfying specific training needs.

13
Step 6: Compiling a syllabus

Training should take place in accordance with a carefully planned syllabus. The emphasis is on what must
be learned and the order in which it must be learned. The syllabus is therefore based on training
objectives and the subject content must enable the students to achieve the training objectives.

Step 7: Selecting instructional strategies

In this step aids must be selected with a view to presenting the training in a meaningful and enriching
manner. Instructional strategies cover a wide variety of techniques; methods and media from which a
selection must be made, and it is essential that strategies selected should suit the content and aim of a
training programme. Note that there is no single strategy, which will suit all learning situations, and
therefore organizations have to develop strategies which suite the unique circumstances of the
enterprises.

Step 8: Acquiring instructional resources

This step requires that a variety of resources be considered to ensure the successful presentation of a
training programme.

Three broad categories can be distinguished:

• Physical resources, which include equipment, material and facilities.
• Financial resources, where the focus is on aspects such as the cost-effectiveness of training and
management of a training budget.
• Manpower resources, which refers to people such as programme facilitators, instructors and
students.

Step 9: Presentation of training

The last step in the training model is the presentation of training. In this step all the preparations
mentioned above are combined, and the success of this phase ensures the success of the training
programme as a whole. The presentation phase integrates all previous steps and includes aspects
such as presenting, evaluating and concluding the training programme.

The diagrammatical exposition of Nadler’s critical events model is captured below.

14
Nadler’s critical events model Source: Adapted from Nadler (1982:12).

2.2 THE TRAINING MODEL OF CAMP, BLANCHARD, AND HUSZCO

Nadler’s training model coincides with the model of Camp et al. (1986), who place their model in the
following perspective.

Training models of Camp, Blanchard and Huszco

Figure. Camp et al. (1986:4).

Training programmes that are developed and presented within enterprises must be geared towards
definite needs.

• Step 1: Involves carrying out a comprehensive training needs analysis.

• Step 2: Involves determining the training objectives. The training objectives serve as guidelines
for the rest of the training programme. Training is an expensive process and funds set aside for
this purpose must be used cost effectively.
• Step 3: At the end of a training programme, management will question the efficiency of the
programme.
• Step 4: The development of the syllabus and the aid involved.
• Step 5: Involves planning logistics.
• Step 6: Involves performing the training
• Step 7: Involves facilitation of the transfer of learning.
• Step 8: Involves gathering and evaluation of data.

15
Maximizing Training ROI Through High-Impact Learning: A Case
Study

Does your enterprise learning organization spend large amounts of

money on training with little apparent effect on business results?

That’s not unusual. Training dollars are often spent on knowledge transfer
rather than performance support, when the latter has a stronger
correlation with improved organizational effectiveness. Training dollars
are often spent on infrastructure that is poorly architected and content
that is poorly designed, so asset utilization rates are generally low. Training
dollars are often not linked to core business results in any serious manner
with true accountability and consequences in place to back up an
organizational commitment to learning. These dysfunctions are
commonplace, yet there are exceptions, and we can learn from them. I’ll
share with you some ways to combat low training ROI, leveraging a recent
case study.

A global financial services firm with a national network of brokerage offices

housing more than 10,000 Financial Advisors found that it was spending
too much on Associate on-boarding while yielding

16
 a poor return on investment. The on-boarding program was costly yet
ineffective, because it relied completely on classroom training, was poorly
designed and developed, lacked management support, and took too long to
complete. In this webinar, we’ll discuss how the curriculum was re-designed
to make better use of technology and to drive performance outcomes more
quickly and cost-effectively.
Specifically, we’ll discuss how the team leveraged High Impact
Learning principles to prioritize learning needs and concentrate training
resources on the places where they would have the greatest impact on
organizational performance.

By picking their battles wisely, making practical use of technology, and

investing in high-impact training where it could do the most good as well
as high-efficiency training where it couldn’t, they maximized ROI for their
organization.

Source:
(http://www.hr.com/en/webcasts_events/webcasts/archived_webc
asts_podcasts/maximizing-training-roi-through-high-impact-
learni_h15gsefk.html (accessed: 9/12/2014)

2.3 HIGH-IMPACT TRAINING MODEL

The High-Impact Training Model is a six-phase process that focuses on providing effective, targeted
training (Sparhawk, 1994:13). Each phase of the model moves the training effort forward. The result
of each phase is the input for the next phase.

Phase 1: Identify training needs

During this phase the specific training needed to improve job performance is identified. The reasons
for training must be investigated and the training that must be devised to satisfy the identified needs
must be described.

Phase 2: Map the training approach

Once the training needs have been identified, measurable objectives must be set and the design must
be mapped out. The objectives define in detail what training is required to improve job performance.
To develop the design plan, Objectives are used to guide the trainer through the process of choosing
an approach to meet the objectives.

Phase 3: Produce effective learning tools

The actual development of the training approach (phase 2) that has been chosen is done during this
phase. The actual training materials are created. These might include training

17
manuals or material to support on-the-job training an instructor-led course. The products of this course
are manuals, audiovisual aids, job aids, etc. Objectives set in phase 2 are used as a guide to develop
training materials.

Phase 4: Apply successful training techniques

During this phase the training is delivered to the target group. The tools chosen in phase 3 will
determine the approach during this phase. If it is a computer- based course, the training must be
delivered and if it is a one-to-one approach, coaching must take place.

Phase 5: Calculate measurable results

During this phase the trainer must determine whether the stated objectives were achieved and
whether the training which was applied in phase 4 has contributed to job improvement. The results
must be communicated and redesign measures (if needed) must be taken.

Phase 6: Track ongoing follow-through

Once it has been determined that phase 5 was successful, the trainer must ensure that training remains
objective. Organizations change constantly, and appropriate training must be developed to adapt to
the changes.

The model is captured graphically below.

High-Impact Training Model

Source: Sparhawk, S. (1994:13)

2.4 RETURN ON INVESTMENT

What Does Return On Investment - ROI Mean?

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency
of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided
by the cost of the investment; the result is expressed as a percentage or a ratio.

18
The return on investment formula:

Return on investment is a very popular metric because of its versatility and simplicity. That is, if an
investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then
the investment should be not be undertaken.

Keep in mind that the calculation for return on investment and, therefore the definition, can be
modified to suit the situation -it all depends on what you include as returns and costs. The definition
of the term in the broadest sense just attempts to measure the profitability of an investment and, as
such, there is no one "right" calculation.

For example, a marketer may compare two different products by dividing the revenue that each
product has generated by its respective marketing expenses. A financial analyst, however, may
compare the same two products using an entirely different ROI calculation, perhaps by dividing the net
income of an investment by the total value of all resources that have been employed to make and sell
the product.

This flexibility has a downside, as ROI calculations can be easily manipulated to suit the user's purposes,
and the result can be expressed in many different ways. When using this metric, make sure you
understand what inputs are being used.

ASSESSMENT QUESTIONS

1. The model proposed by Nadler is a general model for training and views the
training process in holistic terms. Critically discuss the nine steps in the model.

2. Describe the steps of the Camp, Blanchard and Huszco in detail.

3. Describe the phases of the High-Impact model.

19
 TOPIC 3
_____________________________________________________________

MANAGEMENT TRAINING IN AN ENTERPRISE

______________________________________________________________

Learning Outcomes

After studying this chapter you should be able to:

• Identify the major management functions
• Identify and discuss the need for training and development policy
• Identify the purpose of keeping records
• Identify and discuss the different components of information systems
and phases involved in setting up an information system

3.1. INTRODUCTION

The responsibility of the training manager, like any other manager, is to manage the training function
specifically, in such a way that set objectives are achieved. It must, however, be noted that all managers
ought to accept personal responsibility for the training and development of their subordinates. Managing
implies planning, organizing, guiding and controlling the training Sanction. As previously indicated, the
training department is a sub department of the human resources department. The training function
therefore makes a contribution to the overall objectives that have been set. The training manager must
manage the training department with due consideration of the mission, strategies and objectives of the
enterprise (in particular the human resource management objectives).

3.2. PLANNING

Planning the training process mainly entails determining the training needs at organizational, task and
individual level. This is followed by the analysis of tasks and the formulation of training objectives. The
ultimate goal of the formal planning process is to establish training objectives for a selected training
programme. Thorough planning results in a successful training programme.

20
3.3. ORGANIZING

When organizing a training programme, the selected plans must be implemented. The set study objectives
must be achieved, and this can be done by means of departmentalization, specialization and coordination.
Steps must be taken to identify all activities that must be executed, as well as to identify the resources that
must be used and the people needed to execute the tasks. All steps must be coordinated and communicated
to establish a framework within which the training programme can be executed.

The following steps should be undertaken:

• Select a suitable training strategy

• Select applicable training aids and facilities
• Select the correct target group and students
• Select the right instructors
• Compile divisions and other programme content requirements
• Arrange accommodation and draw up general administrative rules

3.4 GUIDANCE

Guidance refers to the steps taken to motivate students, to offer guidelines and to provide support so that
they may achieve voluntarily set study objectives. To achieve set objectives, instructors must also be
motivated and constantly supported so that they perform at an optimal level.

Intrinsic and extrinsic motivation

Intrinsic motivation refers to the content factors inherent in the student or the task. Intrinsic motivation
forms the basis of modern training theories. Extrinsic motivation refers to contextual or external factors
that are imposed on the task or the student by the trainer. Reward and punishment are examples of
extrinsic motivation.

NB: - Intrinsic motivation is very similar to Maslow’s two higher-order needs.

• Extrinsic motivation is similar to the three lower-order needs.

• The person in charge of the training process must endeavor to create an environment that is conducive
to learning productivity.
• The leadership style must create a positive learning atmosphere in which students receive recognition,
and experience growth, autonomy and the achievement of personal objectives.

3.5 CONTROL

It is crucial that the achievement of goals in the short and medium term be monitored to ensure that the
strategic plan is implemented and feedback is provided to enable the strategic direction to be adjusted.
During the control phase on the micro level the training practitioner must determine whether the
organizing efforts and the guidance offered resulted in objectives or outcomes being achieved. If this is not
the case, action must be taken to remedy this. Control is a continuous process.

21
3.6 THE NEED FOR A TRAINING AND DEVELOPMENT POLICY

Any policy, whether it is a government policy, a company or corporate policy, or training and development
policy, is based on certain assumptions and principle which manifest them in the form of a philosophy.
Training and development have become buzz-words in South Africa during the past five years. The results
of this may be seen in the many so-called training and development companies / consultants practicing
today. However, their views of what constitutes the foundation of training and development with a
company diverge widely.

The success of training and development efforts in companies is theoretically based on the company’s
official training and development policy which we has as its basis the company’s particular philosophy. It is
essential that every organization should base its training and development philosophy on an integration of
job content training as well as leadership and management skills, in accordance with career levels.

The concept indicates that all employees of an organization should receive content training throughout
their careers. Initially job content training would enable employees to gain basic skills which would be
required for the execution of their tasks. Later, job content training would enable employees to know more
about their functional area, in order to be promoted in accordance with their newly acquired skills. Job
context training at the highest level implies that senior personnel are kept up to date with the latest
technology in their functional areas to enable them to become better decision-makers.

Because members at lower levels of the organization work more with people than top management, it is
essential that these members should receive a greater measure of training in leadership behavior, team
building and group utilization .Conversely, top management has a larger management task than the middle
and lower levels and therefore the relationship between management and leadership skills is reversed,
although the job content training at all levels remains practically at the same volume. Training in leadership
behavior must be directed at the establishment of a situational diagnostic approach to the practice of
leadership.

22
The theoretical basis for a training and development philosophy is captured diagrammatically as follows.

The theoretical basis for a training and development philosophy

Source: Van Dyk et al. (1992:2)

3.7 TRAINING AND DEVELOPMENT POLICY

A policy can be thought of as “an expression of intent”, which gives general guidance for the conduct of
affairs. Thus the policy for training and development of an organization establishes the broad framework
for its training plan. The plan, in turn, expresses the priority training interventions of an organization and
the strategies to be followed during a given period.

An example of the training and development policy of a company will clarify the point of view set out
here.

EXAMPLE: POLEKWANE MINING HOUSE

AIM

Polokwane Mining House is committed to the Education and Training of its workforce in order to meet
current and future skills needs by uplifting the general skills and education of its employees. We
acknowledge the benefits of education and training to both employee development and company growth.

OBJECTIVE

Through education and training, Polokwane Mining House strives to:

23
• Uplift the general level of education of all its employees, irrespective of race, gender or creed
• Prepare all its employees, where possible, for future promotion
• Equip all its employees with the skills and knowledge required to perform better than the expected
standard.
• Achieve excellence in customer care
• Improve productivity and profitability to the benefit of all its stakeholders
• Develop employees to the maximum of their potential within the company’s requirements and
capabilities.

VALUES

We will endeavor to:

• Develop employees who demonstrate their commitment to training and development

• Eliminate all forms of discrimination in terms of race, gender or creed
• Develop a career path for employees from all levels within the company
• Fill vacancies from within the company as far as possible, depending on the availability of skills and
experience
• Promote employees on the basis of merit
• Develop employees who demonstrate the ability to meet specified performance standards

PURPOSE

In order to achieve objectives, management has to evaluate the future and present needs of the company,
and assess the skills and potential of our workforce, thereby determining the need (current and future) for
training in the company.

3.8 ANNUAL TRAINING PLAN

According to Reid and Barrington (1997:263), the training plan of an enterprise should be a detailed
statement of the training that will be implemented over a specific period. The plan results from a
reconciliation of priority training needs, the training and development policy, and the resources available.
The Workplace Skills Plan as required by the Skills Development Act could also be interpreted as an annual
training plan.

The training plan should therefore be drawn up with extreme care and a typical plan would comprise the
following elements:

24
a) A detailed time plan (monthly, quarterly, and half-yearly) of the training requirements of each
department, allocated according to job classification and number of employees involved.

b) A detailed time plan of the projected training for categories of staff not permanently allocated to a
department.

c) Specifications in respect of each training item for the standard to be achieved, the person responsible
for implementing it, and the training strategy to be used.

d) A summary of the budget allocation in regard to training for each department and the organization as
a whole: this may be divided into training that is already underway and to which the organization is
already committed, e.g. apprentices who have already begun their apprenticeships, and other training.

3.8.1 The Administration of Training

Administration of training is of utmost importance to training success and should be viewed as an integral
part of any training programme. Aspects that will be addressed are record-keeping and training
administration, training information systems, the training budget and the cost-effectiveness of training.

3.9 TRAINING RECORDS AND INFORMATION SYSTEMS

Keeping records of completed training is not a final objective in itself, but should be only a means to
achieving an end. A training department is expected to keep training records, but the critical question is
whether the records serve any purpose. It is important for the training practitioner to keep the right type
of records, since these can assist in determining whether employee performance should be improved.

Trainers should direct their efforts at improving and developing employee performance, and this requires
the planning of record systems in such that they serve as useful reporting sources. The availability of
computers in a rapidly changing technological environment, particularly the field of information technology,
is factors that should be taken into consideration.

3.10 THE PURPOSE OF RECORDS

The purpose of training records will differ from one enterprise to the next. The unique nature of an
enterprise will determine the specific requirements. In general terms, training records are kept to:

• Make strategic training decisions (as part of the planning process).

• Keep track of the status of skills in an enterprise.

25
• Enable employees to respond to enquiries from top management and outside institutions.
• Guide employees to reach their full potential in the workplace by devising development plans that
suit individual needs.
• Comply with statutory and other regulations.

3.10.1 Types of Records

The main types of records that should be kept by a training department are the following:

• Human resources planning data.

• Records of courses attended and personal training records of employees.
• Performance and development appraisal records.
• In-service training records.
• Course evaluation records.

The size of the enterprise will determine how many types of records are kept.

3.11 INFORMATION SYSTEMS

Many enterprises are currently in the process of systematically integrating training records that have up
to now been entered manually into computerized systems. In this topic a number of guidelines are
presented according to which an information system can be implemented.

3.11.1 System Needs

The exact needs of the enterprise must be analyzed. The following aspects are of importance:

• Training volumes: This involves determining the number of courses that will be offered, the
number of students involved, and the training facilities required.
• Training record needs: As previously discussed, records are required for a number of purposes
(such as budgeting). Other information that can be made available includes the cost per course
and cost per student.
• The training period required to establish a new product should also be taken into consideration.
Work performance is a result of training and development, and training records can possibly be
of use in projecting future performance. Training records are also required for career planning.
• Cost reduction needs: Training is normally regarded as being only an expense, and the budget
for it is usually cut when enterprise budgets are reduced. If adequate records

26
 exist, proper planning can be carried out in respect of cost reduction. Without such records, arbitrary
decisions maybe made regarding reductions, and this may adversely affect the enterprise. Training
costs can be justified by increasing training productivity and by training employees to reduce costs.
• Legal requirements: In terms of the Manpower Training Act enterprises are compelled to keep records
of apprentice training, e.g. salaries and training activities.

3.11.2 Selecting a System

When the need for an information system has been determined, the system to satisfy that need must be
selected. The selection of a system depends on a number of factors. For example, if only student
attendance has to be recorded, an attendance register can be used, or attendance can be recorded by
means of a computer. The determining factors are the number of students involved, the number of rooms
used, the duration of the course and the cost of the course. The number of employees in an enterprise
usually determines the complexity of the system.

3.11.3 System Design

Certain elements are always present in system design, regardless of the size and type of system. The
number of elements (for example the number of attendance registers) determines the number of
transactions and the selection of hardware and software (programs).

3.11.4 Developing or Buying a System

There are a number of rules for developing a handwritten (manual) system:

• Minimize the elements involved – the simpler the system, the more it will be utilized.
• Standardize forms and procedures.
• Simplify forms and procedures.
• Design a system as if it were intended for computer implementation, as this is probably inevitable.

The in-house development of a system to suit the needs of the enterprise requires specialized knowledge
and the skill of a devoted team of experts and is time consuming.

A number of guidelines are usually followed and these include:

• standardization of forms and procedures
• keeping forms and procedures as simple as possible
• minimizing the element involved

If a software program is to be purchased, it is vitally important that the exact needs of the enterprise
should be determined and conveyed to the supplier. Everything in life has its limitations, even databases,
and if the software program is too small to deal with the demand, it will not deliver the desired results.
This very often leads to two systems being run: one on computer and one manually. All of these aspects
discussed thus far have one very important element in common, and that is careful, proper planning,
which includes long-term vision. Many institutions do not expect to grow as rapidly as they do and buy
software with limited options and potential, only to discover that they need to replace it sooner than they
had budgeted for.

27
3.11.5 System Diagram

A system diagram is the starting point from which to define a system configuration. The figure below
shows an example of a system diagram with different elements.

Source: Adapted from Dressler (1987:82).

3.12 SETAs AND TRAINING

SETA is the acronym for Sector Education and Training Authority. These are industry bodies convened by
the Minister of Labour with the mission to develop and implement a sector specific skills plan, registering
and promoting studentships and applying to SAQA for accreditation as an Education and Training Quality
Assurance Body (ETQA) for qualifications in its sector.

SETA’s are an initiative of the National Skills Development Strategy (NSDS).

The National Skills Development Strategy (NSDS) contributes to sustainable development of skills, growth
and equity of skills development institutions by aligning their wok and resources to the Sills Development
institutions by aligning their work and resources to the skills needs for effective delivery and
implementation.

3.12.1 What is a SETA?

“SETA” stands for Sector Education and Training Authority. These organizations were re-established by the
Minister of Labour, Membathisi Mdladlana, on 3 March 2005. They are concerned with education and
training and their job is to help implement the National Skills Development Strategy and to increase the
skills of people in their sector.

The SETAs have replaced the 33 Industry Training Boards but have greater powers and responsibilities. They
cover every industry and occupation whereas the Industry Training Boards covered some sectors only and
focused mainly on apprenticeships. SETAs are concerned with student ships, the internships, learning
programme type matrix and unit based skills programme.

There are millions of people who need to learn new skills. Some are already in jobs who need to improve
their skills and to learn new ones. Each year there are thousands of young people who finish their education
and are looking for jobs. More than 50% of Grade 12 students leave school without basic skills to seek work.
They need skills and training. There are nearly 4.3 million people who are unemployed. Most of them have
few skills and little training. There is an estimated figure of between 6,000 and 7,000 unemployed
graduates. There are those who want to run their own businesses; people with disabilities, and those whose
current skills provide them with barely enough money to survive. All need and can benefit from skills
development. SETAs have been established to manage the many skills development needs. Each SETA
28
coordinates skills development in its particular sector. For the purposes of planning and managing the
delivery of training, the economy has been divided into 23 sectors, each of which has its own SETA.

A sector is made up of economic activities that are linked and related. So, for example, there is a SETA that
deals with the banking sector: another is concerned with skills development in the information technology
sector; another is responsible for the manufacturing sector and there is a SETA for agriculture. The SETAs
cover both the public and private sectors.

3.12.2 The National Skills Development Strategy (NSDS)

The principles of the NSDS are the following:

• Support economic growth for the employment creation and poverty eradication.
• Promote productive citizenship for all by aligning skills development with national strategies for
growth and development
• Accelerate broad based economic empowerment and employment equity, (85% Black, 54% women
and 4% people with disabilities including youth in all categories). Students with disabilities to be
provided with reasonable accommodation such as assistive devices and access to participate in
skills development
• Support, monitor and evaluate the delivery and quality assurance system necessary for the
implementation of the NSDS
• Advance the culture of excellence in skills development and life-long learning

3.12.2 The Role of SETAs

There are twenty-five (25) SETAs each classified according to economic sectors. The functions and
responsibilities of SETAs are set out in Chapter 3, section 10 of the Skills Development Act, 1998.

The Skills Development Act states that the functions and duties of a SETA are to:

• Develop a sector skills plan. This is a plan to describe the trends in each sector, the skills that are in
demand and to identify priorities for skills development
• Implement the sector skills plan.
• Develop and administer Studentship. Studentships include the traditional apprenticeships of the
past. Like apprenticeships, Studentship combine practice and theory. The main difference is that
Studentship go beyond "blue-collar" trades - they also prepare people for jobs in the new services
sector, and for higher para-professional occupations. Studentships are a new way of training.
• Support the implementation of the National Qualifications Framework. The National Qualifications
Framework (NQF) is the framework, based on eight levels, on which any qualification or learning
outcome can be registered.
• Undertake Quality Assurance. In promoting quality provision, SETAs will:
• Accredit education and training providers.
• Monitor provision to ensure that programmes are being followed.
• Register Assessors.
• Collaborate with other Education and Training Quality assurers.
• Report to the South African Qualifications Authority on how they fulfill the ETQA role.

29
• Disburse levies collected from employers in their sector. Employers pay 1% of their salary payroll
to SARS on a monthly basis. The SETA uses 10% of the money to cover administration costs. 70%
can be claimed back by companies. The remaining 20% goes to the National Skills Fund.
• Report to the Minister and to the South African Qualifications Authority. SETAs are statutory bodies.
This means that they are established by Act of Parliament and they are given clear responsibilities
to be discharged in the public interest. The levy collected from employers is public money. The
Director-General of the Department of Labour is the Accounting Officer. SETAs must therefore
report to the Director-General on the efficient and effective use of funds. They are also governed
by the Public Finance Management Act, the provisions of which are designed to ensure that public
bodies operate in a manner that is not wasteful or irresponsible. In order that SETAs are publicly
accountable, and to give them full responsibilities and scope to organize their work, each SETA is
required to enter into a Service Level Agreement with the Department of Labour.

30
 ASSESSMENT QUESTIONS

1. Mention five types of records that should be kept by the training

Department.
2. Identify the purpose of training records
3. Which types of training records do you keep and for what purpose?
4. Draw any two of your training records, compare them and try to see
how and why you could persuade your manager that one of the
candidates should repeat a specific training course
5. Your students have been working side by side with you for 3 months
now. They realize that apart from trainer, much of the success of
training depends on the quality of training facilities. You want to test
their knowledge and understanding of the utilization of facilities during
training. Draw up a short test to determine whether the students know
how to manage and utilize the following effectively:
• Training venues
• Equipment used in the training venue
• Time management

6. Discuss the variable of a training development policy

31
 TOPIC 4
____________________________________________________________

STRATEGIC TRAINING MANAGEMENT

______________________________________________________________

Learning Outcomes

After studying this chapter you should be able to:

• Identify the need for strategic training management

• Identify and discuss various training needs analysis methods
• State the advantages of human resources management and strategic
planning
• Identify and discuss the effect of strategy on human
resources factors
• Identify and discuss challenges faced by the training manager today
• Discuss the human resource development model
• Define and argue the case for environmental scanning
• Argue for the need for re-engineering the training function

THE PROPOSED STRATEGY FOR DETERMINING TRAINING NEEDS

4.1.1 Introduction

In broad terms, a strategy can be described as a process in which objectives are pursued and resources
are managed with a view to achieving set objectives. To make selections and to draw up a needs
determination strategy, specific information is required. The flow chart i.e. training needs. (Figure 5.4)
shows the various steps necessary to determine.

4.1.2 Becoming Aware of the Problem

Each set of circumstances under which a need exists is different. The nature of which situation is unique
and the process of becoming aware of needs occur as follows:

• An analyst is instructed to investigate a situation and to report on it

• The analyst identifies symptoms
• Ideas on how to solve problems occur during normal investigations

32
The needs determination process
The needs determination process is captured below.

Step 1: Identify the problem.

Step 2: Determine whether there is need to be proactive or reactive in resolving the problem.
Step 3: Define the target group and determine the level of needs. Defining the target group is an important
component of the training needs determination phase. When a needs determination investigation is
launched, it is important to remember that people are involved, and that people are unique beings. The
various dimensions must be placed in order of priority, and it must he realized that target group analysis
is essential, regardless of the method or technique employed.

Some of the dimensions that apply to a target group analysis are the following:

• Size of the group/number of people

• Sex, age, race and language
• Experience/years in post, career or type of work
• Qualifications or previous training
• Religious denomination, faith and political convictions
• Geographical location
• Physical nature of the work skills, sensory organs
• Financial circumstances
• Adults, children and the
• Ergonomic state
• Intrinsic or extrinsic needs
• Management and leadership style
• Motivation level, interest, aptitude
• Culture/background, hobbies and special preferences.

By conducting a target group analysis, the level at which the need may manifest itself is placed in
perspective. It is therefore determined whether the group functions on the macro or micro level.

Step 4: Involves analysis of the environment. This step focuses on the people and objects that a person
comes into contact with, as well as the influence that these people and objects have on a person. The
possible areas of contact are:
➢ Contact with other people. An employee is constantly affected by many people around him/her
this influence may be positive, negative or neutral.
➢ Contact between the employee and other people takes different forms, such as contact between
parent and child, employee and supervisor, supervisor and subordinate, and employee and
colleagues.
Step 5: Make a list of process factors and determine the causal relationships
Step 6: Select a technique
Step 7: Determine and evaluate work and performance standards
Step 8: Formulate training needs

33
 Training and development as a strategy for growth: A Siemens case
study

Identifying training needs

For a business to be competitive, it is important that it has the right number of
people with the right skills in the right jobs. Workforce planning enables
Siemens to audit its current staff numbers and the skills it has in place as well
as identify where it has skills gaps needed to meet its business objectives.

34
For instance, Siemens is relocating its main plant in Lincoln to a bigger site
outside the main city. This will require new skills for the work to be done there.
A plan has been constructed to analyse which skills the company has and what
training will be needed for staff to use the new technology in the new location.

Siemens needs new skills for many reasons:

to maintain competitive advantage, in ensuring Siemens has
people with the right skills to develop new technologies and
innovations
to ensure Siemens has a pipeline of talent and minimal
knowledge gaps, for example, due to retirement
to fill a gap following the promotion of existing employees

Siemens is a business focused on innovation. This means it needs to anticipate

and respond to rapid changes in the external business environment. For
example, climate change and the growing emphasis on its carbon footprint
has massively increased Siemens focus on wind turbines and renewable
energy sources to address this.

Siemens needs to attract employees with the appropriate skills, either by

recruiting people into the organisation or by training existing

35
 employees to develop more skills.

A recent example of opportunities is the forthcoming 2012 Olympic Games in

London. Siemens helped advise the Olympic bid and has great opportunities in
providing security, healthcare provisions, media and communications
technology for the Games. If it wins the bid for these provisions it will need to
ensure it has the right people to deliver results.

Source: http://businesscasestudies.co.uk/siemens/training-and-
development-as-a-strategy-for-growth/identifying-training-needs.html
(accessed: 09/12/2014)

4.2. TRAINING NEEDS ANALYSIS METHODS

4.2.1 Determining Training Needs

Many needs assessments are available for use in different employment contexts. Sources that can help you
determine which needs analysis is appropriate for your situation are described below.

• Context Analysis: An analysis of the business needs or other reasons the training is desired. The
important questions being answered by this analysis are who decided that training should be
conducted, why a training program is seen as the recommended solution to a business problem,
what the history of the organization has been with regard to employee training and other
management interventions.

• User Analysis: Analysis dealing with potential participants and instructors involved in the process.
The important questions being answered by this analysis are who will receive the training and their
level of existing knowledge on the subject, what their learning style is, and who will conduct the
training.

• Work analysis: Analysis of the tasks being performed. This is an analysis of the job and the
requirements for performing the work. Also known as a task analysis or job analysis, this analysis
seeks to specify the main duties and skill level required. This helps ensure that the training which is
developed will include relevant links to the content of the job.

• Content Analysis: Analysis of documents, laws, procedures used on the job. This analysis answers
questions about what knowledge or information is used on this job. This information comes from
manuals, documents, or regulations. It is important that the content of the training does not conflict
or contradict job requirements. An experienced worker can assist (as a subject matter expert) in
determining the appropriate content.

36
 • Training Suitability Analysis: Analysis of whether training is the desired solution. Training is one of
several solutions to employment problems. However, it may not always be the best solution. It is
important to determine if training will be effective in its usage.

• Cost-Benefit Analysis: Analysis of the return on investment (ROI) of training. Effective training
results in a return of value to the organization that is greater than the initial investment to produce
or administer the training.

4.3 TYPE OF TRAINING NEEDS ASSESSMENTS

There are four different types of training needs assessments:

• Organizational needs assessment: They are those needs which are unique to the enterprise, such
as improving productivity, building morale and a better competitive status. An organizational needs
analysis is concerned with the system-wide components of an enterprise, including an examination
of organizational goals, resources, internal and external constraints.

• Group needs assessment: Group needs are related to a number of employees doing the same type
of work who lack certain skills, and refer to a specific job level or category of employees. This
category of needs should enable the designer to identify requirements in respect of specific job-
related training, interventions such as team building, leadership and management training.

• Individual needs assessment: Individual needs are specifically related to the individual and what
the individual lacks. This information is gathered by analyzing the background, education, training,
experience, knowledge, skills of individual employees.

• Job needs assessment: Job needs assessment entails the analysis of individual jobs and tasks in
order to determine the content of training in terms of what the employee must be able to do.

Several basic Needs Assessment techniques include:

• Direct Observation
• Questionnaires
• Consultation with Persons in Key Positions, and/or With Specific Knowledge
• Review of Relevant Literature

37
 • Interviews
• Focus Groups
• Tests
• Records & Report Studies
• Work Samples

4.3.1 Checklist for Training Needs Analysis

It is helpful to have an organized method for choosing the right test for your needs. A checklist can help you
in this process. Your checklist should summarize the kinds of information discussed above. For example, is
the test valid for your intended purpose? Is it reliable and fair? Is it cost-effective? Is the instrument likely
to be viewed as fair and valid by the test takers? Also consider the ease or difficulty of administration,
scoring, and interpretation given available resources. A sample checklist that you may find useful appears
on the following page. Completing a checklist for each test you are considering will assist you in comparing
them more easily.

Various methods are available to gather information for job analysis purposes. The most frequently used
methods are discussed briefly in this TOPIC.

• Interviews

Interviews can be done on a one-to-one basis or by telephone. During the interview it could be useful to
use a structured or semi-structured questionnaire to provide purpose and structure for questions to be
asked. It would also be advisable to make an appointment before starting interviews, even for phone
interviews. The advantages of interviews are that specific information can be heard directly from specialists,
non-verbal messages can be read, rapport can be built, and the person feels heard. The disadvantages are
that it takes time d is expensive, may not feel confidential, maybe affected by the interviewer’s bias, and is
not a practical method if information must be obtained from a large number of people.

• Focus groups

Focus groups are individuals who share an interest in the subject on which information is gathered. For
example, it may be a group of subject specialists who meet to establish the responsibilities of a training
manager in a specific organization. A person responsible for data gathering normally facilitates the process.
The facilitator should ensure that the focus group is representative of all the stakeholders. It is suggested
that the agenda be kept short and that interruptions be minimized to ensure the workflow.

38
The advantages of focus groups:
• Are that they create an open atmosphere for discussion and participants react to suggestions by others.
• A number of ideas and can be generated.

The disadvantages of focus groups:

• Are that the information is subjective and can be difficult to manage. It can also be expensive and time-
consuming.
• Questionnaires and Surveys

Questionnaires are developed with closed and/or open-ended questions, and information is gathered
without having to make appointments, as respondents fill in the questionnaire in their own time. Clear
instructions must be provided for the respondents and a covering letter explaining the purpose and reasons
for the questionnaire and the survey must be provided.

The advantages are that:

• Many employees can be reached, confidentiality can be assured
• It is relatively inexpensive
• The results are also more objective

The disadvantages are that:

• The response rate could be low, and employees may not feel involved.
• Poorly formulated questions will provide unsatisfactory answers.
• Document Analysis

Document analysis requires that relevant documents be studied to determine the contents and context of
the problem. This method should be used in combination with other methods, and the reason for this
should be clearly explained to the job incumbents. Annual reports, work documents, job descriptions and
tasks and reports are examples of documents to be analyzed.

The advantages are that:

• It provides background information without imposing on other people’s time
• Provides examples and clues to be used during interviews

The disadvantages are that:

• The focus is limited, it can be time-consuming and not many documents may be available.

39
• Observation

During observations people are watched while they are performing their jobs. It is suggested that the reason
for the observation be explained and that the observation be unobtrusive. This method should be used with
other methods.

The advantages are that:

• The actual situation where and how the job is performed is observed.
• It is a very objective method of obtaining facts.
• Workers are not removed from their jobs.

The disadvantages are that:

• People may modify their behavior if they know that they are being watched.
• Not all aspects of the job are subject to observation.
• The observation can also be very time-consuming.

Developing a Human Resource strategy: A Tarmac case study

A key element of Human Resource Management is to identify what level of human

resources the business needs. This includes the skills and knowledge that will be
required by the organisation both now and in the future. This is an integrated
process as it involves looking at every area within an organisation. Tarmac
constantly reviews all of its human resource needs.
For Tarmac, Human Resource Management is a strategic process. This is
because it involves the whole business in planning for the future. Having the
right skills and knowledge enables the business to meet its objectives and
compete more effectively than its rivals.

40
Tarmac's vision is to 'achieve the exceptional'. To deliver value to all its
stakeholders, Tarmac created an integrated plan, which requires all employees
to contribute in different ways. Tarmac helps all employees remember and
focus on its five big goals by using the acronym 'DREAM'.

As Tarmac”s business is now much broader, it must keep developing its people.
A key element of its plan is to 'engage employees' to use their energy and skills
to improve the business. The HR management process provides the means to
do this. For example, the HR department offers formal internal and external
courses to give people training in key skills related to their current roles.

Engaging people takes many forms. Tarmac ensures that employees are
motivated through:
▪ clear and understandable objectives and targets
▪ being helped to improve and acquire the skills, qualifications and training
to do their jobs effectively
▪ being recognised for their performance and rewarded accordingly

41
 A vital element of this drive to achieve the exceptional is ensuring that there are
excellent communication systems in place. Without senior managers clearly
sharing corporate objectives, employees would not know what they need to
achieve or what skills they may have to acquire to meet these targets.

Source: http://businesscasestudies.co.uk/tarmac/developing-a-human-resource-
strategy/human-resource-management.html(accessed: 05/01/2015)

4.4 HUMAN RESOURCE MANAGEMENT AND STRATEGIC PLANNING

Employees are employed to “deliver the goods” and make money for the company. How many times have
you also believed this statement to be true People work for different reasons, one of the most important
being to earn a living. In this process some of us become vital to the enterprise at which we are employed
for they need people to perform certain functions and jobs in order to be profitable, continue existing and
provide the service required by the community or other businesses. We, the people, the human resources,
have needs, which include the right equipment and facilities to comply with stipulated job requirements
and perform at a desired level.

People, equipment and facilities may be regarded as resources and interaction of people with equipment
and facilities is necessary to contribute towards the achievement of success and the attainment of
organizational goals. It is true that competent, motivated and loyal employees could be regarded as the
pillars on which a successful enterprise rests. To ensure that employees continue to make this kind of
contribution and that morale remains high, the enterprise has to not only attend to the needs of employees
but also see to it that employees exposed to development, growth, facilities, and the necessary equipment
to enable them to meet the job requirements. The enterprise also has to ensure that the employee is
suitable, and is comfortable and happy in the working environment.

42
A delicate balance has to be maintained between the employer, the job to be performed, the enterprise
and the environment on the one hand and the performance, success and satisfaction of the employee on
the other. All these aspects have to be utilized to meet organizational goals and contribute to the
development of the employee while still promoting the goals of the enterprise. The maintenance of this
subtle balance requires management – management of people, equipment, facilities and opportunities.
One way in which this management manifests itself is by means of training. Staff training is regarded as one
of the most important human resource management functions. Properly managed training exposes a
systematic approach and the ultimate aim is corporate success and the development of employees.

Training is viewed as a process of intervention. Although the major objective of training is to change the
behaviour, knowledge and skills of employees, mainly for the achievement of organizational goals, effective
training contributes to employee development by giving employees an opportunity to achieve personal and
career development.

Training programmes which contribute to personal development of employees could include:

Numeracy and literacy programmes

Assertiveness training programmes
Supervisor training
Management training programmes.

One of the main responsibilities of management is to see to it that things get done, in other words that the
duties and tasks, which enable the enterprise to meet the required standards and goals, are performed.
People are needed in order to get these things done – yes, even in the electronic age! Machines and
computers cannot work on their own, people have to check or operate machines and write programs for or
at least work the computers. Staff training can therefore contribute to career development of employees
in a number of ways.

Attendance at:

• A training session – such as demonstration – could teach you how to assemble things in your own
working environment or enhance your skill in a particular area or field.
• Computer training will enable you to use one or more computer programs with success and ease a
conference could contribute to the expansion of your knowledge and expertise in a particular field.

Employee training is an expensive undertaking and at this time when all enterprises are feeling the pinch,
training is not always offered on a regular basis. Those who are lucky

43
enough to be able to attend training sessions experience a boost in self-confidence and motivation and the
training contributes to a positive approach and loyalty because the employee feels valued. The most
important contribution of training to the career development of an employee must surely be the fact that
training raises the market value of the employee. The enterprise providing the training knows this and has
to compete for the services of that employee. Enterprises therefore go to great lengths to keep valued
employees in their service.

Human Resource Management and Strategic Planning

Management usually accepts responsibility for determining and presenting a training policy, providing the
necessary facilities and resources, determining the outcomes of training and evaluating training. Much of
the success of training is related to the vision, mission and strategies of the enterprise. It is essential that
training should be managed and presented with the vision and mission statements in mind and there must
be a sound relationship between training and strategic planning. This relationship between human resource
management and strategic planning has a number of advantages.

Advantages

Improved understanding of the implications of the strategic organizational planning of human

resources
Proactive recruitment of experienced human resources
Improved human resource development activities
Improved resource management, in that more objective criteria for payroll expenses are provided

The Effect of Strategic Planning on Human Resource Management

The strategic goals of an enterprise are attained by and through human resources because of their
involvement in:

Cost economy
Ability to function effectively
Ability to establish new enterprises and change operations

Irrespective of the contributing factor(s) in any given area, the ultimate aim is always focused on the
attainment of the strategic goals of the enterprise. Because of the involvement of human resources in
almost all areas of the enterprise, it can be stated unequivocally that strategic planning cannot be carried
out efficiently without due consideration of the human resources in the enterprise.

44
Ultimately strategic planning is implemented by the human resources. If this factor is not duly taken into
account by enterprises in South Africa it could be restrictive for them since a shortage of human resources
is experienced at management, professional and skilled levels in many of the enterprises found in this
country. The relationship between strategic planning and human resource management is crucial.

When carrying out crucial strategic planning, it is important for managers or directors of an enterprise to
consider all the resources before arriving at a strategy and implementing Strategic plans, human resource
plans and budgets all give rise to

Performance planning and appraisal

Training
Recruitment
Development planning
Career development planning
Remuneration plans
Negotiation planning

The diagram on the effects of strategy on human resources factors below.

The effect of strategy on human resources factors

Sales and net revenue per employee

Ability to
Remuneration & benefits cost as a percentage of
establish new
total cost and expenditure
Employee replacement cost including
recruitment Cost Economy enterprises and
and training change

Legal and regulating costs operations

Labour relations/ susceptibility to cost increases
Other

Technical specialization required

Stability and motivation of worker corps Ability to
Employee competence relative to task function
requirements efficiently
Efficiency of the enterprise
Management style and philosophy
Other

Unused/underdeveloped potential of human

resources Ability to
Depth of management resources attain

45
 Adaptability/readiness for change strategic
Competitiveness of talents goals
Other

Source: Van Dyk & Nel (1992:55)

The relation between strategic planning and human resources management

Strategic plans Financial budget

----------------------------------------------- -----------------------------------------
Manpower plans Manning plans

Give rise to
▪
Performance planning & appraisal
▪
Training
▪
Recruitment
▪
Development planning
▪
Career development planning
▪
Remuneration plans
▪
Negotiation planning

46
4.5 A MODEL FOR STRATEGIC TRAINING MANAGEMENT

Within the context of human resources management, the training manager today faces a wide range of
challenges:

1. The training manager must ensure that all training programmes are presented in a purposeful and
effective manner. Enterprises must therefore not offer training just for the sake of training.

2. The imbalance that exists between white management personnel and personnel from other
population groups must be rectified as soon as possible. Management training programmes must
therefore be specifically developed to prepare black, coloured and Asian personnel for
management positions, and to supplement shortages

3. Management must realize that attitudes towards affirmative action training programmes do not
change overnight, and that resistance to the implementation of such programmes is likely.

4. Training programmes must be designed in accordance with didactic principles to ensure maximum
training effectiveness.

5. Training practitioners must be selected, since the success of training is largely dependent on the
quality of trainers.

47
Business strategy, human resource management strategy and human resource training and development
strategy

Strategic planning may be described as a process in which an organization states its overall purposes and
objectives and how these purposes and objectives are going to be achieved.

• Determine the organizational mission

• Scan the organizational environment
• The setting of strategic goals
• Formulating a strategic plan

The training function in an organization is part and parcel of the human resource function and it is therefore
essential that the broad human resource (HR) strategic plan should first be finalized. Human resource
planning involves the linking of all human resource functions to the broad organizational goals.

The HR plan should ensure that people with right characteristics and skills are available to achieve
organizational goals. To achieve HR goals the HR planning process is to determine future HR needs. To
determine the organization’s HR needs, a demand forecast (for example, the number of people required at
some time in the future and the profiles of those people required) should be made and compared with the
supply of HR (analysis of the skill levels) presently in the organization. The difference between the demand
and supply of HR signifies the HR needs.

Strategic purpose of training

Upgrading of manager’s skills to enable them to steer and guide the organization to success remains
one of the crucial priorities.
Training and development should act as catalysts for change in organizations.
To assist organizations to achieve and maintain a competitive edge is another strategic purpose of
training and development.
A learning climate will be increased in the organization if training and development is a strategic priority

What is strategic training management or strategic human resources development?

The following is a brief discussion of the approach of Rothwell and Kazanas (1994). Please note that this
approach should be viewed as part of the human resources management strategy and contains the
following phases

48
 • Determine the purpose of the human resource development effort.
• Analyze the current circumstances/ conditions. What are the strengths and weaknesses of the
enterprise regarding human resource skills? Strengths would entail the skills that employee’s
posses and weaknesses would entail the training needs within the enterprise.
• Scan the external environment. Which threats and opportunities arising from changes outside the
enterprise will affect human resources performance? A threat will be construed as not having the
necessary skills within the enterprise to cope with the external factors, while an opportunity will
be a particular skills base in the enterprise to cope with the external factors.
• Compare present strengths and weaknesses to future threats and opportunities.
• Choose a long-term organizational strategy for human resource development that will assist
individuals in preparing for the future

Implement the organizational strategy for human resource development by means of:
• Organizational development
• Non-employee development
• employee development
• Employee education and training

49
4.6 AN APPROACH TO STRATEGIC TRAINING MANAGEMENT: ROTH WELL AND KAZANAS

Human Resource Development Model

Clarify the purpose of the HRD

effort

Assess present conditions

Scan the external environment

Compare present strengths and

weaknesses to future threats and
opportunities

Choose a long-term organizational

strategy for HRD

Implement organizational strategy

for HRD

Evaluate HRD

4.7 STRATEGIC HUMAN RESOURCE DEVELOPMENT AND KEY ASSUMPTIONS

As a point of departure, it is necessary to interpret Roth well and Kazanas’s conception of Strategic Human
Resources Development.

Roth well and Kazanas identified the major players in their model as the people employed by an
enterprise, groups inside it, and stakeholders outside the enterprise. Against the background they define
Strategic Human Resource Development (SHRD) as a process in

50
which planned learning is used to equip all stakeholders identified with the knowledge and skills that will
be needed in future, thereby changing the whole organization.
The authors believe that SHRD helps implement strategic Business Plans and Human Resource Plans and
have identified a number of assumptions relating to SHRD. For this model to be effective it is believed that.

➢ There should be an overall purpose statement for the enterprise and the HRD effort should be
related to it.
➢ Every major plan of the enterprise should be weighed in terms of the human skills available to
implement and the alternative ways of obtaining these skills.
➢ All employees in the enterprise (regardless of their position) should share responsibility and
accountability for HRD.
➢ Every enterprise should have a formal, systematic and holistic planning process, personnel
department and HRD.

4.7.1 Purpose of the HRD Effort

The first step in Roth well and Kazanas’s model is the determination of the purpose of the HRD effort.
Everyone employed at the enterprise should be familiar with present conditions before embarking on
effective planning for the future. Purpose is also referred to as mission and reflects the fundamental reason
for existence of the enterprise. Activities which the enterprise performs or would like to perform as well as
the kind of enterprise it is or would like to be (reflecting the nature of the enterprise) are also reflected in
the mission of the enterprise. One also needs to determine what the underlying motives of the enterprise
are and who the key personnel are.

Responses could range from the creation of employment and promotion opportunities to making a
contribution to the social well-being of employees or the country as a whole. The philosophy of an
enterprise is thus closely linked to a mission or purpose statement. All of this information is reflected in a
mission statement but before a mission statement can be drawn up, one also needs to ascertain who the
customers are as well as whether and how their needs are being met by the enterprise. Although mission
statements have given rise to a lot of debate, they are widely used, and have a number of advantages.

These include the fact that mission statements:

➢ are used to guide design and development efforts

➢ help students to understand what they are supposed to learn
➢ provide a means of evaluating the relative success of subsequent instructional efforts
➢ Provide information worth communicating to employees and operating managers about what
instruction is intended to achieve

51
Mission statements instill confidence and help people to know “where they are going” and understand “why
they are doing what they are doing.” From the information provided, the important role of employees
becomes clear. The ideal is when Human Resource Development is reflected in the enterprise’s philosophy,
the purpose of the HRD department, and in the way the students and the enterprise benefit from HRD
activities. Not only do HRD practitioners need to set priorities and be successful at completing many projects
and activities, they also need a sense of purpose in order to realize their value in contributing to the success
of the enterprise.

The achievement of success is influenced by a number of factors. To take one example, how does an
organization make an assessment of available human skills or decide on alternative ways of obtaining these
skills? One of the most important cornerstones of success is a needs assessment, the starting point for
planning an HRD experience. Since we are focusing on the SHRD model of Roth well and Kazanas, we need to
take a closer look at what they call comprehensive needs assessments.

4.7.2 Comprehensive Needs Assessment

Rothwell and Kazanas feel that a comprehensive needs assessment is the second step in the SHRD model and
it follows naturally once the purpose of the HRD effort has been determined. The authors feel that a
comprehensive needs assessment is the starting point for planning all organized learning events in an
organization and defines it as a broad, systematic examination of conditions that is conducted for the purpose
of identifying general differences between what people should know or do and what they actually know or
do (Rothwell & Kazanas 1988:79). Comprehensive needs assessment is similar to situation analysis in
Strategic Business Planning Situation analysis is an assessment of the company’s performance.

Its focus is usually on present relationships between the organization and its competitors and the purpose is
to evaluate the status of the organization. In education settings, instructional planners sometimes undertake
a similar kind of analysis. When assessing needs for a “course” they may focus on one discipline, one issue or
one problem. Viewed in this context, comprehensive needs assessment is the process of specifying present
but general gaps between what people should know or do and what they actually know or do. Not only needs
(weaknesses) pinpointed but also the significant talents, skills, or competencies (strengths) of individuals
(Rothwell & Kazanas 1988:80).There are several ways to carry out a comprehensive needs assessment
Rothwell & Kazanas (1988:87-88) feel that HRD practitioners and line managers should:

➢ Identify the students who will be served by the HRD effort over time. More specifically, it should be
determined who the students are, how many there are, where the students are located, how they
can be reached, what their motivation is for learning and it should be ascertained when they are
most interested in learning.

52
 ➢ classify students into broad “market segments”
➢ Compare actual and desired knowledge and skills at present for each market segment of students.
➢ Identify present learning needs for each market and market segment of students. (When actual
knowledge and skills minus desired knowledge and skills minus desired knowledge and skills equal a
deficiency, this is classified as a weakness.)

We have seen so far that in their approach to strategic training management, Rothwell and Kazanas have
identified Strategic Human Resource Development as an aid to implementing HR and strategic business plans
and as the process through which an enterprise is changed. This change is brought about by planned learning
and by assessing the present conditions. Both these actions should be related to and supported by the
mission statement of the enterprise.

4.7.3 Environmental Scanning

Environmental scanning is the name for a structured examination of the future external environment. It is a
systematic procedure for monitoring the world in which the organization receives its sustenance, for the
purpose of identifying opportunities and threats. According to Rothwell and Kazanas (1998:118),
environmental scanning for HRD comprises several distinct steps.

HRD practitioners and operating managers:

• Classify the external environment into sectors

• Decide on a time horizon appropriate for their scanning efforts
• Examine environmental sectors for expected changes over the time horizon they have chosen
• Try to infer the effects of environmental changes on
• the general public
• external stakeholders
• departments or work groups in the organization
• individuals
• job requirements

Identify future learning needs of

• the general public
• external stakeholders
• departments or work groups in the organization

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 • individuals
• job requirements
• Reassess learning needs by market segment from a future orientation

Compiling results is the final step in environmental scanning. These results should be expressed so that they
can be compared with the results of a comprehensive needs assessment. Through this comparison, a long-
term Organizational Strategy for the HRD Effort can be formulated to unify and provide direction for all HRD
activities.

The results of environmental scanning should address two major questions, namely:

➢ What major threats and opportunities will probably be posed by environmental changes that affect
the firm’s dealings with the general public and key external stakeholders, the organization as a
whole, each work group, career objectives of individuals and job performance or job requirements?

➢ What should the future status of the corporation relative to the general public and key external
stakeholders, the organization as a whole, each work group, individuals as they progress toward
the realization of career objectives and job performance or job requirements be?

In this context, a threat is any expected deficiency between as what is at present and what should exist in
the future that stems from lack of knowledge or skill. It is a future learning need, an expected deficiency.
An opportunity is the opposite of a threat. It is a future talent or competency. When analyzing
environmental conditions we need to determine the changes in political, economic, social and technological
arenas that could create opportunities or pose threats to the enterprise. All companies have to comply with
statutory requirements and as a result of this obligation; the provision of labour has a significant effect on
the policy, practices and strategy relating to human resource management.

When accessing the strengths and weaknesses of the enterprise we need to establish the factors that could
promote or restrict the choice of future actions of the enterprise.

4.7.4 Comparing Present Strengths and Weaknesses to Future Threats and Opportunities

Strategic business planners have long noted the existence of strengths and weaknesses in organizational
performance. Strengths lead to success against competitors and weaknesses, if not handled carefully, lead
to competitive failure. Generally, strategists can choose either to build on strengths or correct weaknesses
and the following benefits can be derived from the analysis of strengths and weaknesses:

➢ The analysis of corporate strengths and weaknesses furnishes valuable information about what
businesses to enter or leave, what resources to allocate what activities, and how to manage
interactions between business units.

➢ The analysis of business unit strengths and weaknesses helps strategists decide what products or
services to offer, what resources to concentrate on each product or service, and how to manage
relations between functions.

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 ➢ The analysis of functional strengths and weaknesses provides insight into what contributions each
function should be making to the organization, what resources each should receive, and how to
manage the activities of each function.

Intensive examinations of organizational strengths and weaknesses aid decision-making, and unify
subsequent action. The same principle applies to learning needs assessment because:

➢ Broad analysis of the strengths and weaknesses of job incumbents yields valuable information that
will make it possible to plan job training and socialization efforts that will span many related
learning experiences.

➢ Broad analysis of individual strengths and weaknesses yields valuable information for planning
employee education.

➢ Analysis of the strengths and weaknesses of each work group yields information for planning
employee and organization development.

➢ Finally, broad analysis of the strengths and weaknesses in an organization’s relations with its
product or service users, suppliers, distributors and the general public yields information for
planning non-employee development.

Instructional needs assessment traditionally focuses on specific problems facing identifiable students at a
particular time. The results of an assessment are then used to plan one-shot training courses to correct
these problems. That makes training a “fix-it” tool. Sweeping examinations of strengths and weaknesses
make the HRD effort a tool for long-term, continuous improvement with a unified direction and provide the
opportunity to plan various curriculums:

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 ➢ A training curriculum can be planned for each job class or job category. Working with others in the
organization, HRD practitioners analyze the strengths and weaknesses of each job class and
category. From the results of this analysis, a general but organized sequence of learning experiences
can be designed to orient and socialize newcomers to each job class or category.

➢ An educational curriculum can also be planned to prepare individuals for promotion or other career
moves, to upgrade skills, and to elicit creative solutions to problems. An educational curriculum
stems from the analysis of present strengths/weaknesses of individuals compared with the
requirements for success in possible future jobs. Employee education helps individuals achieve
their career objectives.

➢ A development curriculum results from the comparison of present work group strengths and
weaknesses. It consists of planned learning experiences designed to build a collective pool of group
skills adequate for tasks facing a group.

➢ A non-employee development curriculum consists of planned learning experiences intended to

correct deficiencies or build on proficiencies in relations between an organization and external
groups relevant to it.

To derive a summary of threats and opportunities, HRD practitioners should simply compile the results of
environmental scanning efforts, and classify the results of each trend as a threat or opportunity. Threats or
opportunities may vary in scope. Some may apply to the organizations. Some apply to specific work groups,
some apply to individuals pursuing career goals and some apply to requirements for performance in a job.

The classification of trends or their effects can be based on the opinions of HRD practitioners, the opinions
of strategists, or the opinions of others – key middle managers, for instance. The results of this analysis are
recorded on a simple worksheet that provides a simple view of the “big picture” – long-term, broad-scale
future learning needs. However, the world changes. Jobs, individuals, work groups and groups outside
organizations do not remain static. Consequently, analysis of past or present strengths and weaknesses
alone is no longer sufficient when planning to meet future learning needs.

We have discussed the value of broadly summarizing present strengths and weaknesses. This is similar value
in broadly summarizing future threats and opportunities. We know that an organizational strategy for HRD
is established by comparing strengths, weaknesses, threats and opportunities, but what are the aspects we
need to look at when choosing organizational strategy for HRD?

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Strategic choice for HRD resembles strategic choice in business planning. It is the decision to select from
among alternative grand strategies the one strategy that is best suited to meeting the enterprise’s
objectives. The decision involves focusing on a few alternatives, considering selection factors, evaluating
alternatives against these criteria and making the actual choice. Strategic HRD integrates long-term,
intermediate-term and short-term learning plans designed to cultivate needed talent. It helps meet needs
created by Strategic Business Plans and HR plans.

4.7.5 Choosing an organizational strategy for HRD

An organizational strategy for HRD means a comprehensive, general instructional plan – otherwise known
as a curriculum – which supports the achievement of Strategic Business Plans and HR plans. “Choosing
HRD Strategy” means deciding on an organizational strategy for HRD, a long-term direction for planned
learning activities offered by the organization. The result of a strategic choice for HRD is thus a unified
leaning plan that integrates such HRD functions as Organization Development, non-employee
development, employee development, employee education and employee training. The process of
selecting an organizational strategy for HRD resembles problem-finding in several key respects.
Practitioners find problems, formulate them, identify appropriate ways to look at them, consider possible
solutions and choose an appropriate solution.

Identifying a gap

The starting point for choice of strategy is a perception that a gap does exist or will exist between what is
and what should be. It is the point when future problems or opportunities for improvement are
recognized. After considering various alternative strategies or solutions, strategists decide on a strategy
or solution they feel will help close present or future performance gaps. In Strategic Business Planning, a
strategic choice is made after comparing an organization’s present internal status and its expected future
external environment. Strategic choice thus begins with a comprehensive review of factors affecting
organizational success. There is no single, widely accepted method of conducting such a review.

In choosing an organizational strategy for HRD there are four possible markets to analyze – all four
possible are possible sources of instructional needs. They are:

• External Groups Like Consumers, Suppliers, Distributors, and the General Public
• Internal Work Groups or Departments
• Individuals aspiring to new positions
• Job requirements by job category

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The strategy of the HRD Effort depends on its purpose. It is thus important to consider strengths,
weaknesses, threats and opportunities relative to purpose. Figure 5.3 may help conceptualize
relationships between.

• Analysis of strengths, weaknesses, threats and opportunities relative to purpose.

• the purpose of the HRD Effort
• markets for possible HRD activities
• organizational strategy for HRD

The point of comparing present needs and talents (weaknesses and strengths) with future needs and
talents (threats and opportunities) are to frame the choice of organizational strategy for HRD. Once we
have thus identified the gap – in other words we have seen that there is room for improvement because
there is a difference between what is and what should be, the actual problem needs to be formulated –
this is the second step in choosing the strategy. At this point, it is important to refine, synthesize, and
priorities problems sensed in the previous step and filter them through the purpose of the HRD effort.

For each present or future learning need, practitioners should consider the following:

What exactly is this need and how precisely can it be described?

Why it is important now and how important is it likely to become?
What are the current effects of this problem and what are the expected effects of the problem likely
to be over time?
What will probably happen if no action is taken to meet the need? What will probably happen in the
form of unintended side effects if action is taken at present or in the future?
How important is this need in meeting organizational objectives, individual career objectives, and job
requirements?

These questions can then be applied to the raw information obtained in the previous step. Next, the
answer to these questions can be compared with the purpose of the HRD effort to determine whether
action is warranted.

Approaching problems that have been identified

Once problem areas have been prioritized, HRD practitioners and line managers are ready to look at the
problem. When looking at the problem they should, among others, be interested in

• Determining the cause of the problem (What created the problem in the first place, or what
trends, events, or other future happenings may create new problems?)

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 • Finding a way to consider solutions (What approaches can be used in problem-solving?)

Determining the cause of a problem is rarely easy, because there may be more than one cause. Consider
the following for one moment: does a weakness result solely from a lack of knowledge or a lack of a skill?
Do threats stemming from these causes seem likely to occur in the future? How much do problems, which
seem to stem from other sources – such as outdated equipment –, contribute to lack of knowledge or lack
of a skill?

Cause is the reason that things have gone wrong or are expected to go wrong in the future.

Examples of cause may include any or all of the following:

• Lack of communication
• Negligence
• Poor standards of performance (i.e., standards that are obsolete, impractical or unclear)
• Lack of performance standards
• Decisions to deviate from organizational policies or procedures

Once HRD practitioners and line managers have thus become aware that there is a difference between
what is and what should be, have identified problems and prioritized problem areas, and have sat down
and looked at the problem in order to ascertain possible causes of it, careful thought has to be given to
possible solutions to the problem(s).

Considering possible solutions

No strategy is ever absolutely “right” or absolutely “wrong.” The range of possible organizational
strategies for HRD is broad and the following could be considered: Should the HRD effort:

1. Grow by doing more of what is already being done? This strategy means adding to planned
learning activities sponsored by the organization.
2. Retrench by doing less of what is already being done? This strategy means cutting back on the
number or type of planned learning activities sponsored by the organization
3. Diversify by changing the:
• students served
• needs addressed
• emphasis placed on each potential market of students
• projects/services offered
• instructional methods used
• subjects offered
• Content treated in each planned learning experience?

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Integrate with other efforts by increasing or decreasing HRD’s relationship with other functions or
activities within the organization? Or outside the organization? This strategy means tying HRD to other
HR functions (like recruitment) or other organizational functions (like marketing).

Turn around otherwise failing HRD activities by first retrenching and then pursuing another HRD Strategy?
For example, placing increased emphasis on education rather than on training may be a step in a
turnaround strategy.

Combine any or all of the preceding strategies by pursuing two or more at the same time? Each group of
students may be the focus of one type of HRD activity rather than other groups or types of activities.

NB: Each strategy is possible under any environmental conditions. The question is, how appropriate is it?
This question leads to the next step, which is choosing organizational strategy for HRD.

How to select an appropriate organizational strategy for HRD

Choosing organizational strategy for HRD corresponds to the choice of a solution in the problem- finding
process. It involves narrowing down possible solutions to one that is:
• Workable and practical
• Cost-effective and cost-efficient
• Likely to be accepted by others
• Likely to overcome weaknesses, build on existing strengths, avert future threats, or seize future
opportunities. HRD practitioners and top management strategists rarely have total freedom to
pursue what they believe is the “best” or “optimal” choice. Rather, they must consider possible
strategies for long-term learning efforts based on tests of acceptability.

The Grand Strategy Selection Matrix is one helpful tool in the process of choosing an appropriate strategy
for HRD. Used in Strategic Business Planning, it focuses on two key issues, namely whether strategists
should:

• Devote attention to overcoming present weaknesses or building on present strengths, or

• Concentrate efforts inside or outside the firm?

The Matrix is shown in figure 5.4 and table 5.1 provides a summary of the meaning of the different grand
strategic choices for organizations and for HRD.

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4.7.6 Meanings of Different Grand Strategic Choices and for HRD

The HRD effort is tied formally to

Purchase businesses which “suppliers” or distributors of talent
Vertical provide a firm with within the firm (e.g. the Recruitment/
Integration important selection division of Personnel) or
supplies outside the firm (e.g. University
programs)
Purchase another business
Conglomerate solely because it is a good Expand into totally new areas of service
Diversification investment, not because it which are not necessarily related at all
is at all related to the to the firm’s past HRD effort
business of the purchaser
Purchase another business
Concentric with markets, technology to Use the HRD effort to acquire new
Diversification products related to the markets or customers for the business
purchasing firm
Two firms pool resources to Two or more HRD efforts are combined
Joint Venture
compete in a given market in an industry association
Contract out for major portions of
Divestiture Sell part of the business – or services previously handled by an
the entire business
internal HRD department
Sell off the assets of the Sell off assets related to, or used in,
Liquidation
business developing/training employees
Continue to concentrate on Continue to meet instructional needs
Concentration the business in which the (deal with weaknesses) in ways
firm is presently operating traditional to the firm’s past HRD effort
Target new customer
groups different from those
historically served by a firm, Expand planned learning experiences
Market previously limited to one group (e.g. in-
and adapt methods of
Development house executives) to other groups
distributing products and
inside and/or outside the firm
advertising to attract them
as customers
Change the type of
Come up with a “new look” for the
product/service of the firm
Product products / services of the HRD effort.
so as to expand the range
Development Use new methods of delivery: different
of potential buyers. “Make
names: etc.
an old product new.”
Innovation Come up with an utterly The HRD effort is tied to stimulation of

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 new approach, a novel idea, employee/managerial creativity. It
which is still compatible produces new ideas rather than helps
with the firm’s philosophy people master information derived
of business, purpose, goals from experience or comply with
and objectives company policies and Standard
operating procedures

Source: Rothwell & Kazanas (1998:162)

After the most appropriate organizational strategy for HRD has been selected, it needs to be
implemented.

4.7.7 Implementation of Organizational Strategy for HRD

Implementation is the process of turning plans into actions. As in Strategic Business Planning,
implementation of organizational strategy for HRD is perhaps the most important step. Without careful
forethought about what actions to take, when to take them, and who should take them, no strategy will
ever be successful. Implementation could be regarded as a series of steps in which HRD practitioners and
line managers

Establish operational objectives for the HRD effort and review and revise HRD policies.
examine leadership in the corporation or business
review the structure of the organization, HRD department and learning experiences sponsored by
the organization
review reward systems
budget for resources to implement strategy for HRD
Develop HRD functional strategies.

4.7.8 Establishing Operational Objectives for the HRD Effort

The importance of objectives is repeatedly emphasized in literature on Strategic Business Planning and
HRD. Objectives provide guidance for the outcomes sought from any undertaking.

Business planners advocate a Management by Objectives (MBO) approach to implementation because it

is results-oriented. It matches resources to priorities during annual budgeting. MBO also builds
commitment through participation at lower levels in the corporate hierarchy, because objectives should
be negotiated at every level.

When MBO is used in Strategic Business Planning, top managers usually establish objectives for the entire
organization and then for their respective areas of responsibility. Within each

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top manager’s area of responsibility, objectives are allocated to different departments. But typically, an
MBO programme is geared to meeting annual objectives. However, longer-term objectives can be
established for five or more years and these objectives reflect action toward implementing Strategic
Business Plans. Despite the advantages of an MBO approach to implementation of strategy, it is by no
means foolproof.

Instructional objectives are more limited than the organizational objectives prepared in MBO. They are
widely advocated and used in HRD. They link learning needs and the instruction designed to meet those
needs.

Policies are formal pronouncements intended to guide behaviour. They ensure that decisions made at lower
levels conform to desires at higher levels, and that action taken conforms to Strategic Business Plans and
objectives. Most organizations have at least some formal policies that reflect organizational experience.

Clearly, policies should always be reviewed when choosing a new strategy. After all, it does not make sense
to expect people to behave one way if policies, intended to guide behaviour, lead them to behave in another
way.

It is important to formulate a written HRD policy and review it for possible modification whenever there is
a change in the:

• Purpose of the HRD effort or the HRD department

• Organizational strategy for HRD
• Higher-level strategy for the organization
• HR (personnel) practices generally

4.7.9 Examining Leadership

Leadership is an attempt at influencing the activities of followers through the communication process and
guiding them towards the attainment of some goal(s). If there is one thing, which can make or break the
successful implementation of any strategy it may well be this. Successful implementation depends on
appropriate leadership because strategy is, quite simply, a human manifestation requiring human guidance.
In examining leadership’s importance in the implementation of organizational strategy for HRD, HRD
practitioners should ask:

• Who are the key decision-makers in the enterprise?

• What do you think of HRD as a tool for improving relations with the general public, corporate
suppliers, customers, and distributors?

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4.7.10 Review the Structure of the Organization

Structure has long been viewed as important in Strategic Business Planning. Chandler (1962), the first writer
on strategy, hypothesized that decision-makers in any enterprise adjust structure once strategy has been
chosen. Later researchers have shown that matters are not as simple as Chandler’s early hypothesis
suggests. Indeed, structure can constrain strategic choice.

Structure is obviously important in implementing organizational strategy for HRD. It can be viewed on three
levels, namely:

• Organizational
• Departmental
• Instructional

Organizational structure means the pattern of reporting relationships and duties allocated to departments
in the organization.

4.7.11 Reviewing Reward Systems

Behavioral scientists have long stressed the importance of reward systems, the ways and means by which
managers allocate tangible and intangible rewards according to employee performance, longevity, or other
factors. Clearly, reward systems are important because people do what they are rewarded for or ignore
what they are not rewarded for doing. To diagnose reward systems, it is first necessary to understand what
they are.

Rewards fall into two broad categories:

• Extrinsic, stemming from the actions of other people (examples of extrinsic rewards include salary
increases, achievement awards, and promotions).
• Intrinsic, stemming from work or activity itself (examples of intrinsic rewards include pride of
accomplishment, increased self-esteem, satisfaction with a job well done, and joy at seeing the
results of one’s handiwork).

People learn for different reasons. It is important to understand why people learn if they are to be
motivated and rewarded for it.

4.7.12 Budgeting for Necessary Resources

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The ultimate test of management commitment to any plan is the extent to which resources are allocated
to it. Budgeting is thus an important tool in implementing any strategy. It is the process of converting
objectives into the resource requests necessary to achieve them. Budgeting typically takes place annually,
though some expensive items – buildings or high-cost equipment – may have to be budgeted for over
several years. The point of this discussion is that an annual budget should stem from an organizational
strategy for HRD and from long-term HRD objectives.

4.7.13 Communicating About Strategy

Clearly, communicating about organizational strategy for HRD is easiest when the firm has a coherent and
unified communication policy to inform employees and supervisors about such matters as ongoing activities
of the corporation, corporate, business and HR plans and sensitive or controversial matters. Without a
unified organizational communication policy, there is a tendency for controversial issues to be skirted or
questions about them to be handled inconsistently by different managers (Sigband 1969). With such a
policy, HRD practitioners and line managers have clear guidance on how to communicate about HRD
generally, how to address supervisory and employee concerns about changes in training, employee
education, and employee development practices, and how to use various media to communicate about
HRD. In organizational settings in which HRD is considered an important matter, communicating changes
about it can easily affect subsequent employee acceptance or rejection.

4.7.14 Developing Functional Strategies for HRD

A functional strategy is the short-term game plan for a key functional area within a company. It is essential
to integrate:

• Overall HR Grand strategy (the term “HR Grand Strategy” is used to mean plans for all personnel
activities) with organizational strategy so that personnel activities) with organizational strategy so
that personnel initiatives support business plans, and

• The strategy for each “activity area” within HR with that of the overall strategy of the HR functions
so that each activity area of personnel supports others. These “activity areas” include
hiring/selection/recruitment, training, compensating and dealing with organized labour. The
purpose of HR Grand Strategy is to ensure that the organization’s human resources will be capable
of fulfilling the stated business mission.

Organizational strategy for HRD is an important component of HR Grand Strategy because plans for
equipping people with appropriate skills and knowledge for the future are closely

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related to plans for ensuring that the right people are in the right places at the right times and that they
possess the right skills.

But within organizational strategy for HRD functional strategies may also be present. They differ in purpose
because they focus on different kinds of change. They also focus on different students.

These functions are (Rothwell & Kazanas 1988:226):

➢ Organizational development, which is a long-term effort to change the culture of an organization

or group.
➢ Non-employee development, a long-term effort to improve relations between a business, the
general public, or external stakeholders.
➢ Employee development, a long-term effort to match up the collective skills of a work group by the
organization.
➢ Education, an intermediate-term effort to help individuals achieve their career objectives, keep
abreast of changes in their occupations, and gain new insights about themselves.
➢ Training, a short-term effort to help job incumbent’s discharge their responsibilities.

4.7.15 Evaluating HRD

In the most general sense, evaluation of HRD is worthwhile because it (Rothwell & Kazanas 1988: 467):

➢ Provides information which can be used to improve planning learning, making it more effective in
meeting needs, solving past performance problems and anticipating future opportunities for
performance improvement.
➢ Sheds light on problems of all kinds, both those stemming from lack of individual knowledge or skill
and those stemming from other causes.
➢ Highlights results of HRD activities, demonstrating how well they are working.
➢ Stimulates improvement generally, providing feedback which triggers additional plans and actions.

In evaluating planning learning, HRD practitioners should begin by thinking about six fundamental
questions:

• Who wants to know?

• Who is doing the evaluating?
• What is the real focus of interest?

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 • When should evaluation be carries out?
• Why is evaluation necessary?
• How will the evaluation be conducted?

NB: These questions have to do with the stakeholders, evaluators, content, timing, purpose and method of
evaluation.

Stakeholders
To be useful, an evaluation must meet the needs of stakeholders, those decision-makers and interested
groups or individuals who want the results of an evaluation. Generally, the broader the audience of
stakeholders whose interests are to be addressed by an evaluation, the more complex the evaluation needs
to be. Broad audiences vary in interests, and an evaluation needs to be comprehensive to answer the
questions of more people.

Evaluator
Who will conduct the evaluation? This question is important because, no matter how carefully designed and
executed an evaluation, stakeholders inevitably “consider the source.” Creditability is thus essential.
Evaluation results are discounted when evaluators are perceived to be biased or poorly qualified. It is
essential to choose evaluators who are credible in assessing the subject, capable in assessing instruction and
competent in using methods selected for collecting and analyzing data.

Content
What do evaluators want to know about? This question focuses on content. Unlike research, which is carried
out to create new knowledge, evaluation is carried out to provide information for subsequent decision-
making. This means that evaluation has to be judged according to usefulness or practicality rather than form
or rigour of research design and execution. By contrast, research is judged more by its form than by its
usefulness.

Many content issues may be examined. Generally, the more issues included in an examination, the more
comprehensive, costly and time-consuming the evaluation needs to be.

Timing
When is evaluation appropriate? This question focuses on timing. If evaluation is to provide information for
decision-making, the appropriate timing depends on what decisions are to be made. For example, it is
important to have information about problems before deciding whether learning needs that are distinct from
other needs exist. Likewise, information about the value of training materials is needed before they are used
on a large scale.

Evaluation may be conducted before, during, or after decisions are made about planned learning. The
essential point is to determine when that information is needed, depending on the purpose of the evaluation.

Purpose

Why is evaluation conducted? This question is undoubtedly the single most important one. There are, of
course, several major reasons, which may prompt an evaluation. They include the need to:

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 • Decide whether formal instruction is the most appropriate strategy for meeting a need
• Decide whether instructional materials will produce desired results
• Decide whether instruction is worth continuing or a programme is worth repeating
• Assess how well instruction is being delivered and how well students are mastering desired
knowledge/skills during instruction.

Training is traditionally designed to produce an immediate change in employee job performance. Its focus is
on the job. The purpose of training is to narrow gaps between what job incumbents should know or do and
what they actually know or do. Training is an effort to produce change – in the short term.

Evaluation pervades all aspects of training. It guides decisions to use training to correct a performance
problem rather than use some other improvement strategy. This is called front-end analysis. It influences the
preparation of test items matched to instructional objectives. It is used in field-testing instruction before and
after widespread adoption, and even during instruction. However, evaluation is perhaps most often
associated with post-instructional assessment. If the results of front-end analysis reveal that training is an
appropriate and cost-beneficial solution to a performance problem, the HRD practitioners may complete an
intensive needs assessment and begin instructional design.

Methods of evaluation

Front-end evaluation: the strategic approach. One major problem exists with the traditional approach to
FEA: it assumes that any performance problem can be judged using information about present conditions
and present cost-benefits. The assumption is not always valid.

Changes inside or outside an organization may gradually increase or decrease the importance of a
performance problem – or even the nature of it.

Field testing development. The old adage, “start small but think big” is appropriate for any development
effort. It is a way of field testing. To field test employee development, start with one work group or
department in the firm. Establish a model for employee development in the department or work group that
is appropriate to it. Enlist the support of managers, supervisors and employee opinion-leaders in planning,
implementing and periodically following up on it.

Once a model of employee development has been successfully used in one workgroup or department, it
can be extended gradually into the remainder of the firm.

Use exactly the same approach with OD and no employee development. Start with one group, devise a
successful means of developing the group, scan the environment for changes, and implement the
development effort gradually.

Concurrent evaluation of development. Concurrent evaluation checks development efforts against initial
objectives to ensure that activities are in line with intentions.

The HRD department should hold periodic meetings for interested parties to assess the progress of
developmental efforts and identify areas requiring corrective action. Meetings can be held in groups
participating in employee development programs or OD interventions. Advisory groups, much like

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 marketing focus groups, can be assembled to represent external stakeholders and meetings can be held
with these groups to evaluate non-employee development activities.

Post-development follow-up. Use post-development follow-up only where there is a need to change
employee, organization, or non-employee development initiatives. Change is appropriate when there is a
major shift in Strategic Business Plans, environmental conditions, staffing strategy, or organizational
strategy for HRD.

Post-development follow-up begins with data collected through surveyor interviews. Results are then
presented in meetings, along with information about the successes and failures of each development
effort. This information sets the stage for establishing new development objectives and new plans of
action to meet them.

NB: Strategic evaluation (SE) of the HRD effort monitors how well:

Results match intentions. Have the consequences of an organization’s strategy for HRD been working as
desired?

Organizational strategy for HRD is being implemented in line with long-term objectives. Is the organization
practicing operationally what was preached strategically?

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 Organizational strategy for HRD is attuned to environmental conditions as the future unfolds in the
present. Were expectations about the future accurate, and do they still furnish a reliable guide for HRD
activities?

Strategic evaluation of the HRD effort is a comprehensive examination of how well human resources in the
organization have been, are being, and will be developed over time. It is the culmination of separate but
comprehensive reviews of training, education and development. Its purpose is to take stock of how well
organizational strategy for HRD has worked, is working and will probably work in future.

Strategic evaluation (SE) is appropriate before, during, and after the implementation of organizational
strategy for HRD. When a proposed HRD strategy is examined before implementation, the evaluation is
instrumental in the making of a strategic choice. When the chosen HRD strategy is evaluated during
implementation, this is called strategy review or concurrent evaluation. When HRD strategy is evaluated as
decision-makers are contemplating a change, this is known as summative evaluation.

We live in a time when nothing is constant except change. People and organizations unwilling to change
cannot survive for long. Learning is a form of change, and planned learning in organizations is important for
realizing strategic business plans. HRD is synonymous with planned learning in organizations and in here we
briefly touched on this important TOPIC to demonstrate the relevance and necessity of planned training in
your organization.

4.8 RE-ENGINEERING THE TRAINING FUNCTION

It is clear that the process of unrelenting change is well under way in South Africa. Globalization of business,
the accelerating introduction of new technologies, changing needs and characteristics of the workplace and
workforce as well as leadership competencies are all new realities that we are coming to accept. However,
we may not fully realize that complete and timely rethinking and restructuring of education and training is
necessary, and is in fact most important.

For many of us, an obligatory moment has arrived. Organizations and individuals should assess past and
present behaviours as well as future needs. A clear challenge emerges: earn, lead or lose!

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4.8.1 Defining Concepts
Before continuing with the discussion it is necessary to clarify some of the concepts that will be used.

Re-engineering
Re-engineering is the fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service
and speed.

Process re-engineering
A coordinated, continuous approach is required to rethink, redesign, retool and reinvent new processes
that will perform better than existing ones.

Total Quality Management

Quality management or total quality management (TQM) is a way to continuously improve performance
at every level of operation, in every functional area of an organization, using all available human and capital
resources. Quality management is both a philosophy and a set of guiding principles that represent the
foundation of a continuously improving organization, all the processes within the organization, and the
degree to which the present and future needs of the customers are met.

Benchmarking
Benchmarking is an external focus on internal activities, functions or operations in order to achieve
continuous improvement. Starting from an analysis of existing activities and practices within the firm, the
objective is to understand existing processes, or activities, and then to identify an external point of
reference, or standard, according to which that activity can be measured or judged.

4.8.2 Re-Engineering: What It Is and Is Not

To reinvent organizations South African managers should throw out their own notion about how businesses
should be organized and run. They should abandon the organizational and operational principles and
procedures they are now using and create entirely new ones.

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Many managers in human resources, organizational development and training, together with line managers
and business colleagues, often become their own worst enemies. At times they embrace a new big idea –
like TQM, empowerment, self managing teams – superficially. Attempts to implement and support the
initiative may be disjointed and incomplete. The new initiative is prematurely abandoned, never having had
a fair chance to improve performance and transform the organization. They then hear partially confused
“users” state, “We tried that once …” or “I never knew why they sent me to that offsite briefing…” or “Let’s
see what they come up with next...”

NB: Read the label carefully. Re-engineering is without doubt a strategy that can achieve incredible results,
capable of providing dramatic improvement in cost, quality and customer satisfaction. But its set of
principles requires understanding and support throughout the reengineering process. Certainly, as an
opening position, knowing what reengineering is – and can do- and what it is not – and cannot do – is a
critical starting point.

Re-Engineering: What It Is

If we begin with the basics, we have to go to a primary source. M Hammer and J Champy indicate that their
definitions contain four key words. “Fundamental,” radical,” “dramatic” and “processes” are the terms we
focus on as we start our discussion.

➢ Fundamental, as the first key word, suggests that we should make no assumptions and accept no
givens. Rather, we should ask basic questions about our organization and how we operate. The two
most fundamental questions are “Why do we do what we do” and “Why we do it the way we do
it?” These questions, applied to the traditional training function, would generate a provocative
response. Our concern is not the past or present

– the “what is” - - but rather focuses on the future, the ideal – the “what should be.”

➢ The second key word is radical. Training has suffered from superficial and often ineffectual
practices. Re-engineering suggests that we should are no longer going to fiddle around with around
with, tweak or massage training. Instead, we will disregard existing structures, procedures and
practices and start anew by finding new ways to accomplish our new objectives. This emphasis on
radical is about reinvention, not business improvement, business enhancement or business
modification. Training may very well be going out the back door as the Continuous Learning
Organization arrives at the front door.

➢ If this scenario appears somewhat dramatic, it is – for “dramatic” becomes the third critical word
in the re-engineering definition. As Hammer and Champy write, “Re-engineering isn’t about making
marginal or incremental improvements but about

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achieving quantum leaps in performance.” Not all organizations are ready for dramatic change. As earlier
discussion pointed out, re-engineering requires organizational support and leadership. An organization, and
its respective training function, should be willing to assess its current position, whether in poor and peak
condition, and ambitiously, aggressively and dramatically go after the performance sought.

The final key word is process. Historically, as we re-examine how our current organizations may function,
they may more often than not be described as rather hierarchical in structure, with layers of management
and individuals committed to performing functional tasks instead of integrated cross-functional processes.
The pyramidal structure may not support customer-driven needs. Hammer and Champy “define a business
process as a collection of activities that takes one or more kinds of inputs and creates an output of value to
the customer.” Once again, the traditional training function versus the continuous learning organization
exemplifies this final descriptor process. The traditional training function may offer formal training
processes according to a rigid schedule to trainees who are nominated, fill out forms and formally arrive in
class. The continuous learning organization provides just-in-time training options in a variety of formats and
delivery systems.

Other descriptions of re-engineering include:

• A methodology that deals with changes in the how, where and why work is done.
• Radically changing a process, usually through a technology, to realize substantial gains in cost,
time and services.
• A way to produce a fundamental change in the normative and procedural structure of an
organization.

Finally, we should also remember that re-engineering is rooted in people and human resources as critical
building blocks. Performance equations are human performance equations. Re-engineering does not occur
in a technological vacuum.

Re-engineering: what it is not

The rapid change that occurs in cotemporary organizations often results in confusion between the various
business initiatives and improvement programmes. “Mergers and acquisitions”, “downsizing and
rightsizing” or “TQM and continuous process improvement” activities, often occurring at the same time
throughout different business units, confuse both internal and external stakeholders. Furthermore, partially
implemented initiatives or those with hidden agendas have added to the dilemma of knowing “who’s on
first base” Re-engineering has suffered as a result of this scenario.

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Re-engineering is not

Restructuring or downsizing. These terms are often used when an organization reduces capacity to meet
lower demands. We most frequently associate it with manufacturing, especially in the automobile industry.
These terms imply “doing less with less.” Re-engineering, as we have come to appreciate, means, “doing
more with less.”

Reorganizing, delayering, flattening and organization. The focus of re-engineering is not on organizational
structures, but on process structures. While a flatter organization may result as part of a re-engineering
process, our efforts are at all times focused on processes

Software re-engineering. Other disciplines may make use of similar terms for very different applications.
This is the case with the term “software re-engineering” which focuses efforts on using modern
technologies to rebuild obsolete information systems.

Total quality management (TQM). While a variety of quality improvement initiatives are similar to re-
engineering in many ways, they still are fundamentally different. The similarities are the mutual
appreciation of the importance of processes and meeting the needs of the customer. The significant
difference is that TQM places the emphasis on what the Japanese call Kaizen, or what we think of as
continuous incremental improvement within the framework of existing structures.

4.8.3 Re-engineering and Organizational Transformation: A Model

Nothing is more challenging and rewarding to execute, nor more delicate to handle, nor more beneficial to
implement than the transformation and re-engineering of an organization. The organizational
transformation process results in enmity, pain, change, risk, uncertainty and, most importantly, rewards
that are beneficial to individuals, organizations and society at large.

Finding a model that works for you

Once one is convinced that re-engineering is the process that will transform the traditional training function
into the continuous learning organization, the question of “how to do it” soon arises. Re-engineering the
training function and ultimately transforming the organization means training leaders who can establish
and sustain credibility in accomplishing this critical and dramatic process. The use of a multidimensional
model is one way to get all the stakeholders on board by giving them a frame of reference to position the
broader re-engineering process. No single model, construct or paradigm is perfect, but the use of a carefully
chosen model, and its corresponding processes, is a critically important tool. And this is the next issue to
consider.

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Research has brought a wide variety of excellent resources to our attention. Dr Johnson A Edosomwan
published one such resource. His model is especially attractive to and viable for the human resource
development community for several reasons.

▪ Firstly, right from the start it unites the organizational transformation and re-engineering
processes. We are no longer focusing on cosmetic improvements to traditional training
programmes. In our capacity as training leaders we are entering into a partnership with other
senior managers and cohort groups to drive performance, change and transformation. The model
begins with this visual construct.

▪ Secondly, system thinking is now a clear driver of organizational performance, and the building of
high-performance workplaces is significantly enhanced if we understand and use each of the
subsystems that support the broader transformation and re-engineering process.

The model does just this focusing on each component system: the management system, the social system,
the technical system and the behavioural system.

Consideration and use of the Edosomwan organizational and process transformation model in re-
engineering the training function, as well as broader organizational development initiatives, provides an
opportunity to include each subsystem in the broader re-engineering process, it is through the
management system that the strategies, visions, missions and values of the organization are harnessed.
The social system provides the teamwork, creativity of individuals and groups and the cultural support to
implement new ideas. Tools and mechanisms for achieving excellent products are provided by the technical
system. Finally, the behavioural system, or attitudes, habits and work patterns of individuals and groups
supply the human side of the re-engineering process.

A re-engineering process, particularly one with the diver’s stakeholders that we find in training, can be
significantly enhanced by using this systems model.

Figure 5.6 on the next page represents Edosomwan’s “6 R’s” of transformation and re-engineering.

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Edosomwans organizational and process transformation model: the 6R’s of
transformation and re-engineering

Figure 5.6

Realization

• Needs
• Challenges
• Threats Requirements
Re-evaluates
• Opportunities • Customers
• • Process
• Results Strengths
Owners
• Performance
• Suppliers
indicators
• Products
• Goals • Services

Redesign
Retool Rethink
• Total system
• Competitive • Structures
• Eliminate
technologies and • Systems
waste
systems • Procedures
• Optimize
• Delivery systems • Rules
Process
• Transformation • Processes
• Optimize
• Technologies
methods output

Finding a language for understanding the concepts of re-engineering

The process of re-engineering, in its purest sense, is characterized by radical design and dramatic
improvement. Some theorists suggest re-engineering the training function “with commando-like speed and
precision,” putting it in place quickly. Others favour a less aggressive approach that provides guidelines to
help organizations implement an effective re-engineering process. Johnson an Edosomwan offers the “6
R’s” of organizational transformation and re-engineering for our consideration. Beginning with “realization”
and ending with “re-evaluation,” it provides a language for understanding the underlying concepts involved
in organizational transformation and process re-engineering. Both the visual model and a short supporting
discussion are provided.

Realization requires frank recognition of the needs and challenges facing both individuals and
organizations. As Edosomwan states, it “should serve as a wakeup call to the organization and its
individuals, bringing to their attention the fact that if an organization is to continue to operate in a
competitive, global economy, it must constantly seek a means for incremental and radical
improvement”.

The key requirements of satisfying both internal and external customers should be examined before
beginning the re-engineering effort. An organization’s mission, vision and values need to receive
attention as they relate to supporting customer needs.

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 The third of the six components is rethinking. This also requires a rigorous re-examination of all current
and existing conditions in the organization. This phase requires the active support and leadership of
senior management, stakeholders and champions. Improving existing conditions takes desire, courage
and expertise.

The fourth “R” is redesign. It focuses on understanding the content, pattern, behaviour and composition
of specific work processes. A set of processes not only transforms inputs into useful outputs, but also
forms an organizational system.

Retooling, the fifth component, involves the evaluation and adaptation of a more competitive system.
As the name suggests, it encourages an examination of the technologies and tools needed to improve
production and performance.

The final phase, “re-evaluation,” as Edosomwan explains, requires a re-evaluation of the entire process
to ensure that once the redesign and retooling efforts have been completed, the new process has met
its objectives.

4.8.4 Re-Engineering: A Win-Win Strategy

Re-engineering starts by discarding everything you know – your work environment. It says. “Forget what
you were doing and start with a clean slate.” Asking people to do that are like asking someone to give up
their knowledge, friends, family, even their heritage, and start life over. It’s hard enough to make simple
process improvements and to persuade people to go along with them, but OD (organizational development)
can help.

Re-engineering benefits for the organization

Re-engineering aligns training with the new corporate agenda and

positions training as a vehicle to carry the organization into the future
meets job and skill demands for the new economy
presents learning as a performance tool
utilizes training as a tool for dealing with change
deploys a strategy to maximize success at the individual employee level
provides an opportunity to develop organizational students and leaders
capitalizes on the potential to leverage the human capital investment
Creates a new trainer infrastructure of fewer and more appropriate trainers (managers, technicians).

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Re-engineering benefits for training/human resource development

Re-engineering aligns training with the new corporate agenda and

repositions training as a provider of bottom-line results
increases the value of training to the organization
provides multiple opportunities to align training with specific business functions and strategies
integrates training as a key component of the continuous learning organization
supports organizational and individual competency and skill development as a valuable partner
Generates distributed and virtual training right on target and just in time

ASSESSMENT QUESTIONS

1. Identify and discuss the various training needs analysis methods.

2. What are the challenges faced by the training manager today?

3. Identify the strategic purpose of training.

4. Define Environmental Scanning. Why is the carrying out of Environmental

Scanning important?

5. You have been requested to make recommendations to your training manager

on re-engineering of the straining TOPIC. Which aspects would you consider?

6. For what purpose do you use needs assessment?

7. Determine the ways in which needs assessment is carried out in your

organization.

8. What to your mind are four of the most important aspects that should be
addressed in a needs assessment?

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 TOPIC 5
_____________________________________________________________

ADMINISTRATION OF TRAINING
______________________________________________________________

Learning Outcomes

After studying this chapter, you should be able to:

▪ Identify different types of training and their designs

▪ Define E-Learning, advantages and disadvantages of E-Learning.
▪ Define and identify different budgets
▪ Identify factors which can be considered to influence the cost
effectiveness of training
▪ Determine the cost effectiveness of training

5.1. INTRODUCTION

The administration of training plays a supporting part in the training exercise. Training practitioners or
administrators should maintain a database, which provides all the necessary information, and the records,
which are kept, should be relevant and essential. Enterprises should keep a variety of training records for a
number of reasons and that these could differ from one enterprise to the next. As a result of technological
developments in recent years we now either use the computer and electronic databases for record keeping
or else integrate manually kept record systems with computer records. Using the computer to obtain this
kind of information has come to be referred to as using information systems.

5.2. TRAINING COSTS AND BUDGETS

Training can be very expensive. Cost-effective training requires the careful allocation of financial resources
and this is usually reflected in a budget. The budget is regarded as a control instrument and record-keeping
should be exact. Because there are sometimes hidden training costs, a certain amount of flexibility in the
training budget is advisable. If in-house training is offered to employees, the cost involved is normally not
budgeted for but

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actually the time and effort of the practitioner, and the programme he or she uses, should be taken into
account.

Budgets

Budgets are prepared in a variety of ways. One can distinguish between

➢ A central budget
➢ Individual budgets
➢ Shared budgets

The responsibility for a training budget can either lie with the training manager or be shared by the training
and line managers. When preparing a training budget, careful consideration should be given to

➢ Existing and future training needs

➢ Facilities and personnel available
➢ Salaries and developments of personnel
➢ Sundry expenses

Because the cost of training will be influenced by decisions such as:

➢ Whether to continue with current training programmes or whether, in view of technological

development or strategic changes in the enterprise, it would be better to introduce new training
programmes
➢ The availability and suitability of human resources, facilities and equipment
➢ Salaries
➢ Sundry expenses, which could include traveling costs, costs related to the development of training
material, guest speakers, refreshments, incentives, unscheduled maintenance and the hiring of
equipment.

Determining the cost-effectiveness of training

Identify your most cost-effective training programme. Explain to me, you’re assistant for three Months,
how you arrived at your answer.

Comparing training programmes or training programme can determine the cost-effectiveness of a

programme. The last option involves carrying out the following steps:

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Step 1: Determining the cost of training and development

This includes the costs involved in analyzing posts (salaries, fringe benefits and overall costs), design,
instructional equipment such as videos and the administrative costs of the training department.

Step 2: Calculating training costs

The fixed-cost element includes, among others, the cost of training facilities and registration. Variable
costs include the cost of material and the time allocated to each student participating in a programme.
Other costs include salaries, fringe benefits, student accommodation and transport, and also the cost\s
related to trainers (for example, salaries and fringe benefits).

Step 3: Determining losses as a result of training

The cost arises because of the lower production levels that occur when employees participate in a course.

Step 4: Estimating the financial value of each trainee

This includes aspects such as higher production, a better quality of product and higher profits from
training. If measurable outputs (for example products that are reproduced) are involved, the estimate is
easier to make than in cases where there are no objective measuring instruments (for example the
outputs arising from management training).

Step 5: Weighing the cost of training up against the benefits derived from it.

The financial advantage is subtracted from the costs to determine the cost-effectiveness programme.

The cost of training and development refers to all costs incurred in the development and design of the
training as well as costs relating to the salaries and fringe benefits of the employee concerned. In the
calculation of training costs, there are two aspects to consider, namely.

Fixed- costs (the cost of facilities, registration)

Variable costs (cost of materials, time allocated to each student participating in the Programme,
accommodation costs and all costs related to the trainers).

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Sundry costs: Make provision for:

➢ Traveling expenses

➢ Bursaries

➢ Training material

➢ Fees for consultants and guest speakers

➢ Refreshments

5.3. TRAINING FACILITIES

Most large companies have training facilities, and the prevailing attitude in most enterprises is that their
facilities are sufficient and that nothing further needs to be done, however, it remains the responsibility
of the training personnel to see to it to it that training facilities meet the required standards. Training
facilities are one of the resources which are available to the training practitioner, the other being human
resources. A training facility as a resource should be used efficiently and effectively and should be relevant
to the need. Training facilities should be maintained efficiently and evaluated from time to time ensure
that they are still meeting the need and have remained relevant to the demands made on them. Training
practitioners or managers are responsible for balancing the achievement of certain goals with the facilities
available. Their task could be made a lot easier if training facilities were adaptable and flexible.
Adaptability and flexibility make it a lot easier to introduce new and better technological equipment and
to adjust training methods.

Training facilities are resources, which allow the trainer to conduct training in an effective manner once
all needs have been determined and all requirements have been met. Facilities can be divided into five
areas, namely

➢ Venues
➢ Equipment
➢ Time
➢ Finance
➢ Methods
➢ Systems

Training Venues

Should be conducive to learning, comfortable and suitable for the kind of training presented, adequate in
size to accommodate the students with ease, have enough equipment and be free from distractions if
possible. The layout of the training venue should be of such a nature that it could be changed continually
to suit the needs of the trainer.

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The Equipment

The use of equipment during training should meet the needs of the training programme and should not
overshadow the actual training. If a software computer program is being taught, for example, it should be
loaded on all the computers and should be accessible to every trainee. The trainer should not have so
many “nice-to-have” gadgets that the focus of the training is altered. Equipment should never be used as
a replacement for the trainer, should be properly maintained and stay to use. One of the most important
requirements when using equipment is the fact that the trainer should be well trained in the use of this
equipment. New equipment should be tried out and tested before being used in a training session.

The Allocation of Time

The allocation of time to a training session is important. The trainer needs ample time to prepare, present,
and consolidate. Time must be allowed for the trainer to convey the necessary information but trainees
must also feel that enough time was located to allow them to practice the required skill(s) or put the
knowledge gained to the test. Time should also be allocated for questions and for addressing any
problems, which the trainees might have.

The Cost of Training Programmes

The cost of training programmes should be examined from time to time and attempts should be made to
ensure that a particular training programme is cost-effective. It is therefore of the essence that
practitioners should see to it that the excellent results achieved outweighing the training costs.

The Training Methods and Systems.

The trainer can use a number of training methods and systems. What is of importance is the fact that the
selection of appropriate training methods and systems should be correlated with the content of the
programme.

NB: Most large enterprises have training facilities, and the prevailing attitude in most enterprises is that
their facilities are sufficient and that nothing further needs to be done. However, it remains the
responsibility of the training personnel to see to it that training facilities meet the required standards.

Planning tasks

Training facilities can be one of the most expensive items on the training budget, especially if they have
to be hired. It is important for the training manager or practitioner to develop an overall training facility
strategy and ensure that the venue available is suitable for the purpose for which it is needed.

When planning a training facility strategy, the following planning tasks need to be executed:

The extent of the strategy must be defined. This is done in terms of the size of the organization. The
geographical areas to be served and the period of training.

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 A philosophy must be developed. This statement should address issues such as the principles, beliefs,
and assumptions of the facility planning process.

Policy guidelines, parameters, and objectives must be identified. The issues here will include the
physical size of the venue and estimates of facility requirements as well as the comparison and
selection of facilities.

Determine the suitability of current training facilities. It is important to determine whether the facilities
in use comply with the purpose for which they are utilized, to ascertain whether the layout is effective
and to identify the strengths and weaknesses of the facilities.

Make an estimate of training requirements. The training practitioner needs to make a projection of
future training needs and estimate what the impact on training facilities will be. This estimate of future
training needs can could be in terms of time required or available, space and practicality of the venue.

The training needs of trainees and staff need to be converted into facility needs, since very few training
facilities are utilized on a continual basis.

The training facility strategy needs to be developed in conjunction with the business strategy of the
enterprise. It should contain information about the size, type, and location of facilities as well as
information on the possible expansion of the existing facility and the period for which the facility will
be used.

The training venue is very important with regard to the size of the group it will have to accommodate and
the kind of programmes that will be presented. If the training on offer requires break-away rooms, a venue
consisting of only one room will not serve the purpose

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the purpose and an alternative will have to be sought or the whole training exercise will have to be.
An important characteristic of training facilities is that they must be adaptable since rapidly changing
technology and methods require this. If adaptability and flexibility are not taken into account in the
erection and management of training facilities, the cost-effectiveness of the enterprise will be adversely
affected.

Once strategies have been devised, they have to be implemented. A training facility strategy cannot be
implemented unless the facility to be used is adequate for the needs. The suitability of seating
arrangements in a training venue is largely influenced by the type of training being presented and the
method of presentation to be used.

Training venues are usually designed and furnished without anyone asking the opinion of the training
staff, the very people who will use the venues. This is a major problem because architects and those
responsible for the furniture in these venues all share the common goal of saving money. That is one
reason why so many venues have fixed desks. It would seem that the architects and interior decorators
still believe that a formal lecture is the way to convey content, the only way. Therefore, the training
practitioner is quite likely to find that no or very few facilities for small groups are available.

Another aspect that has been receiving attention lately is that of accommodating the needs of disabled
people. Stairs have made way for ramps, the locations of training venues are planned so that they are
easily accessible for wheelchairs and people who cannot walk long distances (i.e. they are located near
lifts) and desks have been constructed and organized so that trainees can participate with the least effort
– the equipment is at a level which suit their needs. A lot of space is needed for wheelchairs to move
around and the space available between rows has to be wider than usual. It is very difficult to comprehend
the everyday needs of disabled people but if you have ever had to use a wheelchair or been on crutches,
irrespective of the cause, you will have an idea of what these people experience every day.

Define the extent of the strategy

The extent of the strategy is defined in terms of the size of the organization, the geographical areas
involved and the period.

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Develop a philosophy

The training facility philosophy statement should set out the principles, beliefs and assumptions of the
facility planning approach.

Identify policy guidelines, parameters and objectives

Policy parameters, guidelines on the physical dimensions of facilities and application objectives will
affect both the estimates of facility requirements and the comparison and selection of facilities.

Determine whether the current training facilities are suitable

Training facilities currently available from the starting point of the planning process. The weaknesses
and strengths of the facilities, the purpose for which these are utilized and also the layout of such
facilities must be determined.

Develop an estimate of training requirements

A projection of training facility needs indicates which training facilities will be required during the
planning period. The estimate can be expressed in terms of time required; space required and expected
utilization, for example instruction, administration, accommodation, and so forth.

Convert the estimated student and staff needs into facility needs

Remember that training facilities are not continuously used. Average utilization varies according to the
strategy selected.

Develop a training facility strategy

A training facility strategy cannot be developed in isolation from the business strategy and the training
strategy. It should indicate the size, type and location of facilities and the expansion of existing facilities
for the planning periods.

5.4 IMPLEMENTATION OF PLANS

The requirements that the training facilities must meet, must be clearly indicated. The type of training
presented and the presentation method will determine e appearance of the facility. Two basic
presentation methods can be distinguished presentation in groups and individual presentation.

5.4.1 Group-Based Training

The following are important considerations with regard to group-based training facilities:

The movements of groups during the course of the day, for example from division rooms to dining
halls, will affect the width of the passages, the acoustics, etc.
The acoustics of a division room must be such that sound will be carried to all parts of the room, even
when large groups are present.

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The layout and shape of the division room must be of such a nature that presentation media are clearly
audible and visible to all students.

5.4.2 Individual-Based Training

Individual-based training must enable students to work by themselves and at their own pace.

5.4.3 Other Training

In addition to the above-mentioned methods, there are other training methods with unique requirements,
for example those where:

Manual skills are taught in computer rooms.

Practical training is presented in workshops.
Simulation training (requiring expensive equipment) is presented.

An important characteristic of training facilities is that they must be adaptable, since rapidly changing
technology and presentation methods require this. If adaptability and flexibility are not taken into account
in the erection and management of training facilities, the cost-effectiveness of the enterprise will be
adversely affected.

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Divisible Training Room: The Department of Homeland Security, Office of
Chief Human Capital Officer - Facility Type: Divisible Training Room Overview: A multi-
purpose training facility with individual and shared system capabilities

Design, Build, Maintenance executed by Bridges SI

Divisible Training Room

Project Description

The Department of Homeland Security, Office of Chief Human Capital Officer (CHCO),
engaged the Bridges SI team to address their aging divisible training rooms. The
facility featured three spaces with two air walls. CHCO objectives for the space
included a physical makeover and a refresh of technology enhancing capabilities and
reducing the labor necessary for classroom set-up.

Shape

The Shape practice met with CHCO stakeholders establishing the interior design
priorities for their divisible space. After completing a needs-assessment and a review
of the project budget and priorities, it was

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determined that much of the existing furniture could be reutilized. Overall the room
needed a simple facelift to project a clean, light new space, while at the same time
adhering to a limited budget balancing multiple priorities. Bridges SI worked with the
client selecting new carpet tile that was designed to withstand the rigors of heavy
traffic and featured a pattern conveying a modern, appealing space. Additionally, the
Shape practice specified and installed window shades to complement the new look.
The combination of carpet, shades and new paint resulted in the warm inviting facility
CHCO was striving for.

Construct

The Bridges SI team observed CHCO meetings to gain a better understanding of how
the spaces were used and then met with stakeholders to document their goals and
challenges with the existing system. The primary objection with the facility was the
myriad of cables that each room required to present on the audiovisual equipment.
When the rooms were joined, the signals were manually patched. This created
numerous issues including aesthetics, function and capabilities. The Construct
practice determined an automated system based a large digital matrix switcher was
the proper solution. Furthermore, in an effort to address their cable management
issues, our team provided lecterns enabling each presenter to control their individual
space, or when combined, the entire facility.

Each of the three spaces comprising the large training center features a large, front-
projection system for the primary display, and includes a flat-panel for supplemental
display. The rooms have the ability to show unique information, or in a combined
mode with the air walls open, the audiovisual system can share the information across
all displays. To maximize room flexibility, ceiling microphones were specified and
installed. The ceiling microphones allow both the presenter and the participants to be
heard through an integrated audio conferencing system. Additionally, the presenter
has wireless microphones that feed any of the room combinations and the audio
conferencing system.

The facility now has the versatility and the simplicity to allow the staff to engage with
the participants, not the technology. With possible sources including multiple laptops,
satellite and physical media, the material can be as varied as necessary to effectively
convey their message.

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 Unify

As government agencies continue to feel pressure to increase telework and reduce

their footprint, savvy agencies are turning to technology to provide employee
engagement off-campus. The Unify practice at Bridges SI developed an enterprise
video distribution system with CHCO enabling materials and presentations to be
available for off-site employees. The solution allows for computer and video
content to be digitally stored and cataloged. CHCO can distribute the content to
any audience they choose either by streaming the content or through providing
media. The Unify practice continues to work with CHCO to find more effective ways
to reach larger audiences with reduced resources.

Sustain

Previous to the Bridges SI engagement, CHCO’s conference facilities did not have a
maintenance contract. Typical in this scenario, the audiovisual was in disrepair
before our team began the project. Out of the three projectors, only one presented
an image and each flat-panel had significant issues. Presently, CHCO has engaged
the Sustain practice to provide operational support for large meetings,
preventative maintenance, as well as an enterprise case-management system. This
system allows CHCO to generate and manage cases with the objective of
maximizing uptime and leveraging their investment to system’s potential.

Source:http://www.bridges-si.com/project/divisible-training-room/
(accessed: 13/01/2015)

5.5 TYPES OF TRAINING ROOMS AND THEIR DESIGNS

The learning process should be supported by a choice of different types of training venues. Training venues
should be designed in such a way that the unique present and future needs of the enterprise can be
satisfied. Care must be taken to ensure that the acoustics are good, the lighting is adequate, the electricity
supply can cope with the demand, the ventilation is adequate, and the furniture is comfortable and
suitable.

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5.5.1 THE DESIGN OF TRAINING VENUES

Each training method has its unique requirements. When conducting group-based training the trainer
needs to ensure that the training venue has enough space for participants to move around freely, despite
the equipment. Acoustics have to be good and visibility of projected material for all trainees must be
ensured. Should some trainees not be in a position to see the projected images clearly, seating
arrangements could be changed for the duration of the displays. With individual training trainees work at
their own pace and by themselves. It is not always not necessary to use a training venue for this kind of
training. If the equipment is accessible at the trainee’s workplace, training can be conducted there.

Training rooms must be designed in such a way that the unique present and future needs of the enterprise
are satisfied. Specifications with regard to acoustics, quality of walls, floors, ceilings, doors, lighting,
electricity supply. For example, for the use of video machines, overhead projectors and other audiovisual
equipment, ventilation and furnishings must be determined beforehand to support the learning process.
Today a variety of delivery systems for training are available. Although all companies do not have all the
different venues, there is a possibility that at least one or more of the following could be found in any
enterprise involved in staff training:

The Traditional Classroom

Interactive Television Classrooms
Self-Study Venues
Guided Learning Centers
Computer-Based Training Centers
Multimedia Classrooms

a) Traditional classroom

The traditional classroom is one in which students are individually seated at desks or tables facing the
front of the room. The trainer operates from behind a desk or lectern with a blackboard, overhead
projector, flip chart and other audio-visual aids at his disposal Classroom training is still the fundamental
approach to training. When traditional classroom training is the instructional strategy selected, it lends
itself to techniques such as lecturing, studying, group discussions, presentations, film rows, audio tapes
and videos.

Principles to be considered for selecting the right instructional techniques for the classroom are:

Determine the desired performance beforehand.

Choose the most appropriate procedures for achieving the desired performance.
Pick those that are practical and job-related.

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 Clarify the skill level of the students before commencing.

The advantages of the traditional classroom

There are few distractions for students, and all participants can see and hear what the trainer does
during a lecture and presentation.
It confirms the authority of the trainer.
It is a well-known, traditional setting for learning.

The disadvantages of traditional classroom

Dampens student participation.

Inhibits interaction among students.
Inhibits freedom of movement and confines access to learning materials to those directly in the
student’s possession.
Brings back unpleasant memories of this type of training during childhood.

b) Interactive television classroom

Interactive television classroom makes use of video broadcasts to convey instruction to students who are
geographically dispersed. This allows for contact between trainers and students. The system can consist
of two-way audio contact between trainer and student or two-way video contact.

The advantages of the interactive television classroom

It is cheaper than sending trainers or students over long distances to proceed or acquire instruction.
There is feedback between trainers and students.
It is productive to reach many people in different locations simultaneously.

The disadvantages are:

Students sometimes have difficulty concentrating for long periods of time.

Students may find it intimidating.

c) Self-study

Self study consists of the use of a package of printed material that includes tests and exercises for self-
evaluation.

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Advantages of self-study

It is individually based.
Student must perform.
Evaluation of student progress is provided.
The student controls the process.

The disadvantages of self-study

There is limited feedback.

It assumes that students can comprehend the material.
It demands student interest and drive.
The amount of assistance given to the student depends on the trainer or other students.

d) Guided Learning Centre

A guided learning centre is designed so that instruction is individually based e1f-paced. Trainers and/or
tutors are used in various places to assist students but they should be able to master the educational
process on their own.

The advantages of guided learning centre

Students can work at their own pace
It provides students with a feeling of being active participants in their training.
It allows students at different levels of competence and studying different subjects to be taught in the
same classroom

The disadvantages of guided learning centre

It can be expensive
It can be inappropriate and/or frustrating for students who do not possess the required reading skills
or motivation
Computer-based training

e) Computer-Based Training

It is based on the fact that the student interacts with a computer program that presents subject matter,
allows for practice exercises, gives feedback, analyses performance, and provides assistance as needed.

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The advantages of computer-based training

Provides for a varied presentation that combines, for example, text, graphics, animation and sound
Is interactive and individualized
Stimulates interest by using good visuals
Is responsive to student control
Provides instant feedback and assistance as required

The disadvantages of computer-based training

The equipment is expensive

It is complicated and expensive to produce
It is sometimes difficult for students to operate

f) Multimedia Classroom

A multimedia classroom is set up so that students have opportunities to use a variety of learning
media, for example films, tapes, slides, radio and video.

The advantages of multimedia classroom

It is varied and more stimulating.

Students who learn best through visual methods find it very helpful.

NB: recollection ability

People generally recall:

10 per cent of what they read

20 per cent of what they hear
30 per cent of what they see
50 per cent of what they hear and see
70 per cent of what they say or write
90 per cent of what they say as they do

5.5.2 E-Learning

E-learning creates the environment for a learning revolution that can create new opportunities for the
future.

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a) What Is E-Learning?

E-learning is not new and has been around in some form or other for the past ten years and it is expected
that a quarter of all learning will take place electronically in five years time.

According to Pollard and Hillage (2001), E-learning involves the delivery and administration of learning
opportunities and support via computer, networked and web-based technology, to help individual
performance and development.

In its broadest form

E-learning encompasses:

The provision of information via information or communication technologies in a very accessible and
immediate way that can enable individuals to refresh or extend their knowledge and improve their
performance.

The provision of interactive learning materials and packages designed to facilitate skills or wider personal
development. The actual courses currently provided via E-learning focus mainly on IT skills and, to a
lesser extent, on softer skills (people-to-people training) such as general management skills, or more
specific aspects of management such as interviewing, negotiation and conducting meetings.

At the third level, E-learning is multi-dimensional and embraces both the first two levels in a wider
performance support framework. This is coupled with processes to administer and monitor learning
provision and out and to provide students with various forms of support from expert’s peers. In
administration, E-learning can provide access to learning resources including previews, registration and
tracking of use.

b) Advantages of E-learning

Just in time, just enough and just for you - E-learning materials can be accessed at the most convenient
time, in short segments and can be customized to suit student needs.
Cost Effective: with significant reduction in delivery costs reportedly in excesses of 5O per cent.
Up-to-date: content can be easily updated from one central source.
Quick: the time needed to learn a particular TOPIC or skill is reduced or compressed” as learning is
tailored to that individual. Most reports suggest a 50 per cent reduction in learning time.
Retainable: the smaller and more relevant the learning the easier it is to capture.
Risk-free: people can learn in a relatively anonymous environment without the embarrassment of failure
and/or any socio-cultural bias from personal contact.

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 Everyone gets the same standardized message from E-learning. A feature which is valued by some
organizations.
Interactive and collaborative: and therefore more fun.
Easy to track: as the administrative functions facilitate student registration, monitoring of student
progress, testing and record-keeping, without the need to develop additional systems.
Empowering: as it increases the user’s IT skills.

c) Disadvantages of E-learning

Technology dependent: students need access to appropriate hardware and software to fully benefit.
Bandwidth is a particular problem.
Sometimes incompatible with other systems and materials, although the development of standards may
minimize the potential fragmentation or confusion.
Unsuitable for some types of training: particularly some soft skills developments that rely heavily on
interpersonal contact such as team building, communication, or presentation.
Somewhat less interactive than it is claimed to be: some e-learning programs are no more than
“photocopied pages on the Web” (although quality is improving)
Some e-students have reported difficulties getting to grips with programmes because of the absence of
feedback, and lack of student support.
Expensive to set up both in terms of providing the infrastructure (although this may be in place already,
intranets and networks will have to be able to carry a lot of traffic) and the cost of developing content.
Some studies have pointed to the “hidden costs” of providing student support.
Still dependent on human support: both to help people use the software and also to support their
learning.

D) Organisational approach to E-Learning

The following can be used as a guideline for enterprises to consider in developing their approach to e-
learning:
• Old and new: Most enterprises are working on ways of blending e-learning with traditional classroom
approaches to training.
• Outsourcing or not:
There are three main options for sourcing e-learning materials:
➢ Buying off-the-shelf programmes, thought to be a good start, but unlikely to be sufficient
➢ Customising externally-developed content or finding an external contractor to develop materials
from scratch – an expensive approach, but one that is becoming increasingly popular.
➢ Developing materials in-house-thought by some to be the way forward.
• Support: The provision of support to students is a key element of a learning
strategy and can take a number of forms.
• Automated support: advanced help facilities
• Expert support: synchronous (real time) or asynchronous (post hoc) contact between students and
tutors. The latter is felt to be better for students with good self-discipline and the former is suited to
students or learning situations needing more structure and immediate feedback.
• Peer-to-peer support: contact between students, either as follow-up to particular learning activities
and/or as some form of closed (or open) learning set or community. Either form may or may not need
facilitating.

96
• Mentoring: one-to-one interaction between individuals.
• Role of the trainers: E-learning is likely to change the role and skills of trainers, but not eliminate their
role altogether. It can therefore provide a range of opportunities for trainers to develop their role and
skills; some however will view e-learning as a threat.
• Evaluation: E-learning generally provides a host of functions to help evaluate not only use and
throughputs of learning provision, but also outputs. This can help individuals manage their own learning
and also help enterprises manage their overall provision.
• Getting it right: Five factors are thought to contribute towards successful implementation of e-learning:

1) Analysis: The identification of training needs, specification of learning objectives, selecting and
understanding the audience, and deciding on the methods of learning.

2) Design: creation of own application by selecting content, media, type of inter-activity available to
students, and user interface.

3) Development: putting the design into action, which involves production of audio/video,
programming software, authoring of materials and testing?

4) Implementation: promoting the programme, collecting management information and appointing

skilled mentors.

5) Evaluation: Reviewing the performance of the programme against its objectives, in terms of take
up, efficiency, effectiveness and return on investment (ROI).

97
NB: An important aspect of the training practitioner’s planning task is to present training as cost-
effectively as possible.

ASSESSMENT QUESTIONS

1. Explain the disadvantages you experience when using a traditional

classroom set-up in your training venue.

2. Complete the following diagram by marking the appropriate option

with an x

Types of training rooms used in my training performance

Traditional classroom Traditional TV room
Self-study Guided learning centre
Computer-based training Multimedia class

3. To what extent is your training budget able to meet the demand for
training in your company? If you were asked to suggest changes to your
training facilities in order to support your presentations and contribute
to the learning environment, what would you suggest?

4. Explain to the students working with you why you have chosen the
particular seating arrangements, which you use in your training venue.

5. Consider the classroom layouts represented in figure 3.2 of Erasmus and

Van Dyk and select one of the arrangements, which you could use as an
alternative to the one currently in use

6. Compare group-based training with individual training presented in the

same venue. How would you make sure that displays via projection
equipment are visible to all the trainees in a group?

7. Which training methods do you use when teaching manual skills,

practical training, and stimulation training?

8. Discuss the factors that should be considered when evaluating the cost-
effectiveness of training programme.

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 TOPIC 6
_____________________________________________________________

CASE STUDY FOR TUTORIAL DISCUSSION: DIPLOMA

______________________________________________________________

CASE STUDY: A TRAINING AND DEVELOPMENT PROBLEM AT MILLENIUM

MANUFACTURING

You began working for Millennium Manufacturing Company as a Human Resource

Department trainee a few days after receiving your Master’s degree with a major in Human
Resources Management from a large university in South Africa. After a one-year training
programme, you served two years as assistant director of training and development in one of
Millennium’s machining and assembly plants. You were then promoted to Plant director of
training and development, in which capacity you served for approximately four years. This
assignment ended when you were transferred to corporate headquarters as staff assistant to
the corporate director of training and development. The corporate is scheduled for
retirement in six months. You hope to become the next corporate director of training and
development, but you know that this depends largely on how well you handle your next major
assignment.

Millennium is planning to open a new plant in 16 months. The new plant will hire
approximately 1000 employees. However, only one of eight production lines is to go into
operation when the plant opens. The other seven production lines will be phased in over a
period of three to four years from the date of the plant opening. Construction of the new
plant has just started in a town of 10000 people 50 kilometers south of Pietermaritzburg, KZN.
The plant will be very similar to the plant in which you had previously been director of training
and development. You have been asked by the corporate vice president of human resources
and your boss to submit a plan for recruiting, selecting, and training the personnel of the new
plant. You have been given four months in which to do the job. Four hundred and fifty new
employees must be hired and trained prior to the plant opening date.

Top management has made the decision that 49 members of management from Millennium’s
21 other plants are to be transferred to fill all second and higher-level management positions.
For most of these managers, this will be a promotion. Also, many non-management
employees in the company will be offered jobs in the new plant, but few are expected to
accept. All front-line management, such as foreman and supervisors, must be trained by
Millennium, not hired “off the street” as supervisors.

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QUESTIONS

You are not sure what you should do, because this is the first time the company has ever
built and staffed a new plant. There is no past experience on which to draw.

1. Decide how to hire and train an entire staff of new employees below the second level of
management in one year and have them ready to open the new plant.

2. Decide how to produce and train the balance of 1000 employees needed to staff the
plant by the projected full-operations date.

Source: Adapted from Hilgert, R.L.and Ling, C.C. 1996. Cases and experimental exercises in
human resource management. Prentice Hall: New Jersey.

100
 RICHFIELD GRADUATE INSTITUTE OF TECHNOLOGY (PTY)
LTD
HIGHER EDUCATION AND TRAINING
FACULTY OF BUSINESS AND MANAGEMENT SCIENCES
TRAINING AND DEVELOPMENT 512

1st SEMESTER NATIONAL EXAMINATION

DURATION: MARKS: 100 DATE:

EXAMINER: MODERATOR:
This paper consists of 5 questions and 8 pages including this page.
PLEASE NOTE THE FOLLOWING:
1) Ensure that you are writing the correct examination paper, and that there are no missing pages.

2) You are obliged to enter your learner details on the answer booklet. The answer booklets provided are the
property of the Richfield Graduate Institute of Technology (PTY) Ltd and all extra booklets must be handed
to the invigilator before you leave the examination room.

3) If you are found copying or if there are any documents / study material in your possession, or writing on
parts of your body, tissue, pencil case, desk etc., your answer booklet will be taken away from you and
endorsed accordingly. Appropriate disciplinary measures will be taken against you for violating the code of
conduct of Richfield Graduate Institute of Technology (PTY) Ltd.’s Examinations Board, therefore if any of
these materials are in your possession you are requested to hand these over to the invigilator before the
official commencement of this paper.

4) The question paper consists of 3 sections.

1. Sections A and B are compulsory.

2. Section C comprises of 3 questions; you are required to answer any 2 questions.

SUGGESTED TIME REQUIRED TO ANSWER THIS QUESTION PAPER

NUMBERS QUESTIONS MARKS TIME IN MINUTES

SECTION A: MULTIPLE CHOICE QUESTIONS COMPULSORY
1 Question One 30 35
SECTION B: SHORT QUESTIONS COMPULSORY
2 Question Two 30 35
SECTION C: ANSWER ANY TWO QUESTIONS
3 Question Three 20 25
4 Question Four 20 25
5 Question Five 20 25
Total 100 120

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SECTION A: ANSWER ALL QUESTIONS (30 MARKS)

1. Choose the correct description of training and development.

A. A program that is used to make the new employee feel welcome
B. It is a program that is designed to impact the right skills, knowledge and ability to an employee
to improve their performance
C. A program that is designed to improve the performance of employees
D. A program that is designed to identify available vacancies, conduct the suitable recruitment
process, place the suitable candidate on the job and develop their skills

2. The following consist of statements that places more emphasis on learning vs training except for
___________.
A. learning should be directed towards achieving the goal of the organisation
B. informal learning should be more encouraged in the organisation
C. psychological support need to be provided to encourage learning in the organisation
D. companies need to invest more in formal training

3. The type of knowledge that is considered personal, which is gained through life experiences, and
it can be found among employees is known as ___________.
A. explicit knowledge
B. social knowledge
C. tacit knowledge
D. individual knowledge

4. The following options consist of elements that demonstrate the value of strategic training and
development except for ______________.
A. increase satisfaction among employees
B. reduce employees turnover
C. increase competition among employees in the organisation
D. improves employees’ performance towards their work

5. The type of knowledge that is considered personal, which is gained through life experiences, and
it can be found among employees is known as ___________.

A. explicit knowledge

B. social knowledge

C. tacit knowledge

D. individual knowledge

6. HR practitioner is currently looking for a new Head of Department (HOD) in the field of Business
Administration. This type of a job requires an employee that is highly qualified and experienced
in this field of study. Which one of the following training needs analysis methods need to be
applied in this situation?

A. Context analysis

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B. Content analysis.

C. Work analysis

D. Cost-Benefit analysis.

7. Which one of the following is considered the second step in the needs determination process?
A. Identify the problem
B. Identify the target group and their level of needs
C. Select a technique that can be used to resolve the problem
D. Decide whether there is need to be proactive or reactive in resolving the problem

8. Frederick Taylor and Frank and Lillian Gilbreth were advocates of an approach to management
involving the use of scientific method, known as _______________.
A. scientific management
B. management science
C. the systems approach
D. the quantitative approach

9. The identification of the target group is an important component of training needs

determination phase. The characteristics of people that are within the group selected during the
needs determination process are important. Which one of the following does not form part of
the characteristic that need to be considered?
A. Financial circumstances
B. Body shapes and sizes
C. Religious denomination
D. Sex, age, race and language

10. When an organisation want to implement any form of training and development program, one
of the following factors need to be considered as an important process of converting objectives
into the resource required to achieve them. Which of the following is one of those factors?
A. Communicating about strategy
B. Budgeting for employees compensation packages
C. Budgeting for necessary resources
D. Budgeting for future challenges

11. Which one of the following is not part of the strategic ways to prepare a budget for a training
and development program?
A. Universal budget
B. A central budget
C. Individual budgets
D. Shared budgets

12. Human resource planning is describe as _____________.

A. planning that is based on employees designing their career paths
B. planning enable the company decide which department needs training

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C. a strategy that allows the company to anticipate human resource needs, and where training can
increase the possibilities of promotions among employees
D. eliminates the need for training

13. Which one of the following can be considered as the benefit of a needs assessment?
A. Loss of business revenue
B. High rate of turnovers
C. Higher training cost
D. Its enables the training department to be more accountable

14. Which one of the following is not part of the cost-effectiveness of training steps that need to be
taken before any training program is implemented?
A. Determining the cost of training and development
B. Determining losses as a result of training
C. Estimating the financial value of each trainee
D. Predicting the performance of employees during the training process

15. Identify the option that prohibits unfair discrimination in the workplace.
A. Physical appearance
B. Conscience
C. Psychological disability
D. Ethic groups

16. The process whereby national economies and business systems are becoming deeply interlinked
with each other is called ________________.
A. global linking
B. globalization
C. management science
D. internationalization

17. Which of the following is identified to be STEP 5 of the needs determination process.
A. Determine whether there is need to be proactive or reactive in resolving the problem.
B. Select a technique
C. Make a list of process factors and determine the causal relationships
D. Formulate training needs

18. Identify an option which does NOT form part of the purposes of training records.
A. Make strategic training decisions (as part of the planning process
B. Keep track of the status of skills in an enterprise
C. Enable employees to respond to enquiries from top management and outside institutions
D. Promote employees on the basis of merit

19. Training facilities resources are divided into five (5) areas. Identify the option that forms part of
the training facilities.
A. The allocation of time
B. Assets
C. The owners’ equity

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D. The physical existence

20. The change process in which the change is formulated and implemented by employees is
called_______.
A. organizational development
B. organizational change
C. Lewin change process
D. Maslow's change hierarchy

21. Identify the option that best describes the training method, which CANNOT be found in most
enterprises involved in staff training.
A. Computer-Based Training Centres
B. The Traditional Classroom
C. Multimedia Classrooms
D. Distance learning

22. Employment equity refers to ______________

A. a policy that ensures that there is no representation of all race groups in organisations.
B. a policy that ensures only certain groups of the population are promoted in the work place.
C. the process of discrimination aimed to disadvantage white people.
D. the employment of people in an equitable or fair manner

23. Identify the incorrect statement regarding night work.

A. Where the employer requires the employee to work between 23h00 and 06h00 the following
day the employer must inform the employee of any health and safety hazards associated with
the work that the employee is required to perform
B. Employees must only work night shift by agreement and this agreement only stands for six
months
C. Night work means work performed between 18h00 and 08h00 the following day
D. Employers must pay their employees a night shift allowance or reduce the hours of work and
pay the employee for the full hours of work

24. Select the correct option regarding the Labour relations Act 1995.
A. Aims to promote economic development, social justice, labour peace and democracy in the
workplace
B. Lower maternity leave in any way Lower sick leave in any way
C. Lower protection of night workers
D. Lower protection of workers in terms of health and safety and family responsibilities, Lower
annual leave to less than two weeks

25. The role of the labour inspector is the following, except for:
A. They may not copy or remove records
B. They inspect, investigate complaints and questions people
C. They must advise the workers and employers on their labour right and obligations
D. They may serve a compliance order by writing to the director General of the Department of
Labour

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 26. Who is a designated employer?
A. An employer who employs less than 50 employees
B. An employer who employs more than 40 employees
C. An employer who employs less than 40 employees
D. An employer who employs more than 50 employees

27. Choose the correct description of training and development.

A. A program that is used to make the new employee feel welcome
B. It is a program that is designed to impact the right skills, knowledge and ability to an employee
to improve their performance
C. A program that is designed to improve the performance of employees
D. A program that is designed to identify available vacancies, conduct the suitable recruitment
process, place the suitable candidate on the job and develop their skills

28. Structure is obviously important in implementing organisational strategy for HRD. It can be
viewed at three levels, which one of the following does not form part of these levels?
A. Organizational
B. Departmental
C. Instructional
D. International
29. Choose one option from below that is considered as the benefits of training and development
programs on employees.
A. Change the personality of employees
B. Increase conflicts among employees
C. Reduce employees ethical standards
D. Provides a good climate for learning and personal development

30. A process of making workers highly skilled with help of 'on job training and formal learning
is__________.
A. off job training
B. job rotation
C. job instruction training
D. apprenticeship training

SECTION B: ANSWER ALL QUESTIONS (30 MARKS)

Improving Performance at the Hotel Paris Case

The Hotel Paris’s competitive strategy is “To use superior guest service to differentiate the Hotel Paris
properties, and to thereby increase the length of stay and return rate of guests, and thus boost
revenues and profitability.” HR manager Lisa Cruz must now formulate functional policies and
activities that support this competitive strategy, by eliciting the required employee behaviours and
competencies.

As she reviewed her company’s training processes, Lisa had many reasons to be concerned. For one
thing, the Hotel Paris relied almost exclusively on informal on-the-job training. New security guards
attended a one-week program offered by a law enforcement agency, but all other new hires, from

106
assistant manager to housekeeping crew, learned the rudiments of their jobs from their colleagues
and their supervisors, on the job. Lisa noted that the drawbacks of this informality were evident when
she compared the Hotel Paris’s performance on various training metrics with those of other hotels
and service firms.

Given this and the common sense links between (1) employee training and (2) employee performance,
the CFO gave his go-ahead for Lisa and her team to design a comprehensive package of training
programs for all Hotel Paris employees. They retained a training supplier to design a 1-day training
program comprised of lectures and audio-visual material for all new employees.

This program covered the Hotel Paris’s history, competitive strategy, and its critical employee
capabilities and behaviours, including the need to be customer oriented. With a combination of
lectures and video examples of correct and incorrect behaviours, the behaviour-modelling part of this
program aimed to cultivate in new employees the company’s essential values, including, “we
endeavour to do everything we can to make the guests’ stay 100% pleasant.”

Lisa and the CFO were not at all surprised to find that within a year of instituting the new training
programs, scores on numerous employee capabilities and behaviour metrics (including speed of
check-in/out, percent of employees scoring at least 90% on Hotel Paris’s values quiz, and percent room
cleaning infractions) improved markedly. They knew from previous analyses that these improvements
would, in turn, drive improvements in customer and organizational outcomes, and strategic
performance.

Source: https://www.chegg.com/homework-help/improving-performance-hotel-paris-casethe-new-
training-progr-chapter-8-problem-36thrp-solution-9780133545692-exc

Questions 2 (30 Marks)

2.1 Discuss the high-impact training model as one of the tools that Lisa and the CFO can use to improve
the training program of the Hotel Paris. Use the above case study to support your discussion.
(15)
2.2Various methods are available to gather information for job analysis purposes. Focus groups,
Questionnaires and Surveys are some of the tools that can used gather information. Explain the
meaning of these two data collection methods, in your discussion please include the advantages and
disadvantages of using these two data methods. (10)
2.3 Explain the aim of the training policy of an enterprise in the organisation. (5)

SECTION C (40 MARKS)

ANSWER ANY TWO QUESTIONS

Question 3 (20)

3.1 Explain the ethical and legal obligations of an organisation during the recruitment & selection
phase, include both benefits & challenges? (10)
3.2 Compare and contrast different methods of recruitment, include both benefits & challenges. (10)

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Question 4 (20)

Explain in full details the definition of the term SETA. In your discussion explain the functions and
duties of SETA as stated by the Skills Development Act.

Question 5 (20)
Reward management is concerned with the formulation and implementation of strategies and policies
that aim to reward people fairly, equitably & consistently in accordance with their value to the
organization. In view of the statement above:
5.1 Discuss various objectives, challenges, criteria of using reward management? (12)

5.2 Critically evaluate the two (2) types of reward management systems. Support your answer with
suitable examples (8)

END OF EXAMS

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