CASE STUDY assignment on: Training & Development analysis

Introduction

This report highlights the issue of whether to outsource the training & development activities or not. it has been stated in the case study that, Karen VP – HR was in deep tension while he reviewed the entire budget & analyzed that, the sales figure has decreased by approximately 40%. The total loss incurred by the enterprise was quite huge in the 25 years of its existence. The financial position of the organization was not at up to the mark.

Rachel Razak, President Global Industries thought of reducing the estimated budget by scrapping off the various aspects. It was decided to outsource the training and development activities & get rid of the people.The report clearly indicates the various arguments for & against outsourcing training & developing activities. The major stakeholders involved have also been discussed in the report. Various recommendations to Karen have been listed as to why to outsource the T&D activities.

1. Body

The main stakeholders which would be involved in could be divided into three groups such as:

Þ    The organization as a whole

Þ    The trainee

Þ    The trainer

Without the three stakeholders mentioned above, the entire training program would not take place. The stakeholders involved in the entire training & development process would play one of the most important roles. This would help in order to plan as well as set various goals, objectives for the up liftment of the organization. In this case study, Andrew (CFO) would play one of the key roles. Being the CFO of the company Andrew would be required to prepare a training budget report which would help the organization in order to plan the entire program. The following questions should be kept in mind while formulating the entire training & development system for the organization. They are as follows:

Þ    The main purpose for training & development program

Þ    The total budget for the training program

Þ    Need for the training program

Þ    The critical areas to be taken into consideration

Þ    Structured manner in which training would take place in the organization

Þ    Who will conduct the formal training process

Þ    How much time will it take to complete the entire training proc

(Source: IOD Survey Report, 2011)

Some of the views of the various parties involved could be discussed in the following manner. They are as under:

Trainer: The entire training process would depend upon the trainer who takes up the responsibility to train the employees working in the organization. He would be solely responsible to remove the various blockages which are there in the minds of the trainers (IOD Survey Report, 2011). The trainers would be required to motivate the trainees & make them learn various new concepts. This would help them to get motivated & scrap off all the negative perceptions which are there in the minds of the trainees.

Organization: The next key stake holder which would be involved in providing training & development to the employees would be the organization itself.
The demand for the training in the organization increases when the organization wants:

Þ    To increase its levels of productivity

Þ    High levels of motivation

Þ    Enhance the performance of the employees.

Þ    Increase effectiveness & efficiency

Trainee: Trainee refers to the last key stake holder which should be kept in mind while developing the training program. The training & development programs have been made by keeping in mind the people who would be trained for the same. Each & every employee of the organization would play one of the key roles as the attitude of one employee would influence the attitude of the others as well.

Some of the training & development aspects which should be kept in mind while developing the T & D plan would be as under:Þ    The objective of the training process should be kept clear.

Þ    Content for the training & development program should be formulated & self explanatory.

Þ    Various training techniques, strategies, etc should be utilized

Þ    Training should be imparted in a team or a group rather than imparting on an individual basis.

1. Is training a “Luxury”:

Training has been referred to as one of the ways with which the employees working in the organization should be well acquainted which would help them in order to serve the customers with the best of its ability. It has been termed as one of the strategies which would help the organization in order to act effective & stabilize its current position in the minds of the customers (IOD Survey Report, 2011).

Training is not referred to as luxury whereas it is a necessity which should not be overlooked during the economic meltdown. Training refers to a process which would help in order to enhance the individual skills of the employees as well upgrade the knowledge of the same. Training should be imparted even during the phase of economic meltdown as it would help to mould one’s thinking & upgrade the quality of the work done by the employees.

Training would help in order to add high levels of benefits & attain competitive advantage over the same. This would help the enterprise to have an added advantage as compared to the similar firms present in the market.

Training should not be termed as a luxury & regarded as one of the crucial elements which would help in order to develop the organization & lead to success in the years to come. Training should be practiced in order to have high levels of productivity. Increase in the productivity would also lead to motivate the employees & widen the efficiencies, scope of improvements.Outsourcing T&D – Arguments For & Against:

It has been decided by the CFO of the organization Andrew to get rid of all the people & outsource the T&D process. Before implementing the same, the various arguments for & against outsourcing the training & development activities should be kept in mind.

Some of the elements in favor of outsourcing the training & development activities could be seen as under.  The main reasons for outsourcing the training process is not only to get acquainted with the objective or goal of the organization but is also to take care of the various barriers affecting the growth of the organization.

Þ    Low training cost: it is seen that with the help of outsourcing of the training & development of the various activities, the entire cost of training would decline. It has been surveyed that, approximately 20% (Chetna Consultancy Service, 2011) of the total cost could be saved in providing training to the employees. Outsourcing the training activities would help in order to reduce the entire cost which would help the organization in high levels of savings. The savings so done could be used by the organization for other aspects such as increase the level of motivation of the employees by providing them with various types of satisfaction, etc. This would help the organization in order to practice consistency all across the globe (IOD Survey Report, 2011).

Þ    Focus more on the competencies: Outsourcing the training activities would help the organization in order to focus upon its hard core competencies. The 80:20 rules should be followed in the organization which would help to increase its productivity. The 80:20 rule would depict that, 80% of the employees would be trained & would have an impact over the 20% of the organization’s productivity. Outsourcing the secondary aspects would help the organization in order to focus more upon its performance & use its talent in all the key areas of the enterprise (Dutta, 2007).

Þ    With the help of outsourcing the entire training process, the organization would be able to interact with the professionals & experts. They will provide its clients with one of the best practices.

Þ    Outsourcing would help in order to stream line its training process. This would help in order to save time, operating costs, manpower, staffing & provide an overall competitive edge as compared to its competitors (Chetna Consultancy Service, 2011).

Þ    Outsourcing would also help in order to increase its productivity & manage the entire team of management.

Þ    The last advantage which could be reaped by the organization would be in regards to the infrastructure which is to be maintained to provide training process to its employees.

Þ    Outsourcing would also lead to an increase in the percentage of people who would be laid off. The internal workforce of the organization would be reduced at the expense of the laid off workers (Dutta, 2007).

Þ     Outsourcing does not promise an increase in the level of profits earned by the organization whereas fluctuations in the same could be noticed.

ConclusionHence, it could be concluded that outsourcing of T&D activities should be practiced as it would help the organizations in many ways (discussed above). The various advantages have been highlighted in the report which would help Karen i.e. VP – HR to see whether to adopt the same or not. Apart from the advantages, various disadvantages have also been listed. This would help the organizations in order to see what all aspects to be kept in mind while practicing the same.

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