TRAINING IN HUMAN RESOURCES

QUESTION

Training Need Analysis for Small and Medium Scale Enterprises

Part a – the process of Training Need Analysis

SOLUTION

Training needs analysis process is a series of activities conducted to determine problems or other issues in the workplace, and to find out whether training is a proper response (Hasan, 2007). The needs analysis is usually the first step taken to bring a change. This is mainly because a needs analysis specifically defines the spread between the current and the desired individual and organizational performances.

1. 1.     The Methodology

1.1.Reason for choosing Snowball Sampling Method

There was a lack of updated representative statistic figures for these SMEs, thus in order to gather enough data to formulate the samples and an appropriate research, Snowball Sampling Method was undertaken. In case it is not easy to get the desired samples or the information provided by them are vague or improper, a non-probability method, known as snowball sampling is used. Though this method involves cost to locate respondents but the samples collected are detailed and accurate. Finding the individuals or groups which are most suitable for the undertaken study is the first step of snowball sampling method. Snowball sampling is especially useful when it is necessary to reach populations that are inacces­sible, not accurately recorded or hard to find.

The Training Need Analysis activity started has been formulated to develop a methodical TNA model for small business communities. The style of management with which the small and medium enterprises work is adequate for small and medium scale operations but can be a big bottleneck for growth in future. Thus, engendering team work and delegation of authority and work is quite essential in them. Thus, the methodology undertaken is to take samples of 250 enterprises from various sectors and in various stages of the life cycle of their businesses. In order to access the kind of training and consultation which these small and medium sector enterprises need, a feedback form has been duly filled by them.

1.2.Gathering Feedback

1.2.1.     The Sample

Following were the key benchmarks to recognise the final 250 samples:

• preferred sectors
• companies which are more than three years old
• company should have more than 10 employees in case of small enterprise, more than 50 in case of medium enterprise and 250 in case of companies
• location of the enterprise
• acclimation for export

1.2.2.     The Questionnaire

35 items were included in the question are. Single/ multiple choice as well as closed-ended questions all were included. There were three parts of the question are. Every part was designed with an aim to focus on well-marked area of learning.

1.2.2.1.Part 1 – Functional Skills analysis

In order to evaluate different business areas such as business planning, management, marketing, sales, production and finance etc. with the aim of bringing out the needs of these area; an objective based methodology was used.

1.2.2.2.Part 2 – Personal Skills analysis

Person responsible for the evolution of an enterprise is also responsible for its fate. Thus to understand his/her personal skills like communication, decision making etc. becomes very crucial for TNA.

1.2.2.3.Part 3 – Training Preferences

This Part had the objective to prioritize the enter­prises’ gaps in soft and hard skills, manifesting a collection of overall management skills that need­ed to be improved.

The three sections of TNA questionnaire together comprise the Training Needs Assessment tools.  Through this once get an access of interdependent and elaborate information about owner/managers’ learning needs, balancing objective and subjective answers, with the ultimate aim of better understanding and interpreting their real needs.

1.2.3.     The TNA Research E-Tool

In order to make the process of gathering, processing and analysing the data more efficient and effective, software was developed on Microsoft Office Access. This TNA Research E-tool made the process of collecting, gathering, processing and analysing data and coming out with findings and arriving at conclusions much more easy and authentic for the TNA team.

The basic weaknesses which has been identified in the TNA, will act as the base for the formulation of Training Program. In order to ameliorate performance of the enterprises and enhance their competitiveness, there are various needs which are to be undertaken. With the flow of time, the basic weaknesses will keep on changing, thus the training program should be flexible enough to adapt itself as per the changing requirement and environment.

The top five needs which have been identified in this TNA are following:

1. Management style

2. Management effectiveness

3. Financial control and cost calculation systems

4. Marketing and customer focus

5. Human resource development

2. Analysing the Feedback

2.1. Assessment of Training Needs in functional skills

Determining and examining the spaces in the functional skills of an enterprise is the key focus of part-1 of TNA questionnaire. These gaps can be filled through training, consulting and coaching. Following are the main six functional skills areas which have been detailed in the questionnaire:

• Business planning and Management Systems
• Operations and Technology Systems
• Financial and Administrative Systems
• Customer and Sales Systems
• Marketing
• Export strategy

Every functional skill field comprises of various amplitude. These amplitudes are further associated with different statements. Each interviewee selects one statement which is most hereabouts to the existent present situation in his/ her enterprise. Each statement gives a score from 1 (high level of training/development needed) to 5 (less need for training/de­velopment). A high score means the enterprise has a good understanding and knowledge about the func­tional skills area – hence reflecting lower training/de­velopment needs, while the opposite is true for those enterprises with a low score – hence reflecting higher training/development needs. On the accumulation of these statements, a profile of each interviewee is obtained, and this profile is used to assess the training needs of the enterprise.

2.2. Assessment of Training Needs in Personal Skills Areas

In order to recognise the learning requisites of entrepreneurs and managers, the evaluation of personal skills is very crucial. This study brings out the owners/managers’ sub­jective assessment of what skills are apt for their current job and in a future job, to exemplify the areas where the owner/manager needs to modernise further. Following types of personal skills have been taken into account in TNA questionnaire:

• Communication skills
• Technical skills
• Supervisory and managerial skills
• Personal effectiveness

The four personal skills areas were further categorised into sub-dimensions in order to arrive at a more precise demonstration on the comprehend requirements of the enterprise owners/managers. For each personal skills area, the enterprise owner/manager was asked (i) to assess his/her present condition and (ii) in which areas he/she felt an im­provement would be necessary in the near future, using the following scale:

4. Very Important

3. Important

2. Probably not important

1. Not important at all

Part 3 of the TNA Questionnaire appurtenance the former two parts of the TNA for SMEs. The target evaluation of Functional and Personal skills is embodied in Part 3 with the subjective evaluation of spread in management skills by the owners/managers. In Part 3 of the TNA survey the interviewed SME own­ers/managers select and prioritize their gaps in soft and hard skills, a collection of skills that they perceive need to be improved in their overall management ca­pacity. The owners/managers are then asked to decide for each learning area, the amount time they are will­ing to devote to training and on their preferred learn­ing methodology.

Part B – Skills Analysis

In small and medium scale enterprises there is a need for better Business Planning, Management Systems and Human Resource Manage­ment. Apparently there is lack of understanding of the importance of business functions like strategic and strong efficient business planning. These problems are more evident in small enterprises with centralised management. Here the enterprise owner needs to improve the management and business planning, and also strengthen the relation with workers and staff.

1. 1.     Quality Management System

To improve the efficiency of their business operations, SMEs should concentrate on structuring and proper documentation of their operations. This calls for systemising their Quality Management System (QMS). This would ensure a proper flow of information and instructions regarding working methods, techniques, control functions, other operations and technol­ogy functions, across the hierarchy from the top management to other man­agers and staff. Further to improve the efficiency of Quality Management System enterprises should focus on meeting international standards such as ISO, HACCP etc.

1. 2.     Efficient professional financial and administration system

For SMEs to stay competitive in the manufacturing industry there is an unavoidable requirement to have an efficient professional financial and administration system. This could be achieved by using software and other technical tools for accounting, budgeting and managerial decision making. Another important thing to do is use well tested sophisticated tools and techniques for calculating costs. Though these steps the owner/manager would be able to take more accurate and prompt steps to reduce costs, do correct and competitive pricing of the goods and control and manage the operations effectively. This would result in reduced costs, increases profits and more organised operations that would give the enterprise an edge above others.

1. 3.     Marketing Management

Due to centralised management of SMEs the major activity of promotion of brand and sale of products has remained in the hands of the owner or top management. They planned and executed the sales activities in domestic and international markets. Now as the wish to grab a larger share of the market they require proper sophisticated and trained personnel to make proper strategies that target the potential markets. This applies not only for domestic market but for exports as well. Sales as a function of management focus on marketing the product properly so as to attract the potential customers.

1. 4.     Human Resource Manage­ment

In SME enterprises there is a need for better Business Planning, Management Systems and Human Resource Manage­ment. Apparently there is lack of understanding of the importance of business functions like strategic and strong efficient business planning. These problems are more evident in small enterprises with centralised management. Here the enterprise owner needs to improve the management and business planning, and also strengthen the relation with workers and staff.

Marketing, like all other functions of management, require proper professional staff. Centralisation of this function also reduces the focus of the management on its importance. Marketing needs proper understanding of the market, the product, the industry and the customers. Understanding what the customers require and fulfilling those needs could be achieved through proper marketing. Unlike other functions, this function requires understanding and interacting with the people outside the organisation.

In business world communication is a very basic element. Without communicating with other enterprises and people the organisation cannot function. More relevant forms of communication being verbal and written. Communications like negotiations, enquiry, feedbacks etc are common. This increases the importance of proper communication skills for the managers. Thus they should be given proper training in this field. Be it marketing, human resource management, or operations within the organisation, proper communication is the backbone of any enterprise.

No enterprise can function with one person. Although, in SMEs, there is a tendency to centralise major decisions to one person being the owner or manager, still they need other person to do the work. This calls for getting the work done from other, managing their work and supervising them. As evident, this exhibits two major areas for the owner or top manager, which is managing and supervising. The manager needs to have good communication skills so that he can properly explain the staff what work is to be done. He then need to supervise the work as to things are being done as per requirement and on time. Managing the human resource in an enterprise is an important function and a manager through proper communication, management and supervision, can achieve it easily.

1. 5.     Improving Technical Skills

In a technology driven world, technical competence is a must have for the managers. Technical skill is requires in manufacturing, as in to operate machines and other production processes. Technical competence helps in innovation and improving the processes. Also, technical knowledge is required to  maintain records and accounts and generate reports. Thus technical skills include basic mechanical skills for people working in production department, higher competence for people responsible for innovations and computer competency for people working in accounts department. So the enterprises should focus on selecting staff having proper technical skills required and further more training them in specific skill, if any.

As it is discussed earlier, in small enterprises major functions are concentrated in the hands of the owner or few numbers of managers, so the entire decision making is in their hands. Consequently the success of the organisation to a large extent is dependent upon the personal effectiveness of these persons. So to improve the competence of the staff and efficiency of various functions and operations is not sufficient. Even the effectiveness of the owner or manager should be improved. Personal effectiveness included the ability to build and manage a team, to motivate people to work, be open to ideas and feedback and setting up a transparent and trustworthy atmospheres within the organisation.

Part C – Developing Learning Plan

With an aim of coming out with an achievable result and practical approach, the timing of the activities for capacity building should be such that they can manage to take part in these activities. Their willingness to stay away from their business holds a key importance while developing the schedule for the training program. When these entrepreneurs were asked, that how much time can they practically spare for the training in the next year; maximum entrepreneurs preferred 3-5 days of training. It is also an indication of the owners/managers’ understanding of their own training needs and how much work would be expected to overcome these needs and challenges. The small and medium scale entrepreneurs favour hard skills over soft skills. But improving soft skills like strengthening and understanding is equally important to train managers for future needs. Though the importance is very well understood by these entrepreneurs and managers, for and effective human resource management, training of soft skills is also very crucial. The manner in which training was to be given also plays an important role. In the last two decades, formal training methods like presentations, lectures, workshops were the only forms which were used for capacity-building activities. As a stand-alone method, formal training does not appear to be the favoured training method among enterprises. Seminars of maximum two days were the most preferred choice of Maximum entrepreneurs for the purpose of training. In their view, any kind of training program of more than three days will not be preferred by the large group of trainees. This shows a liking for a mix of training methods, in which formal training methods are complemented by more interactive and practical methods, such as work­ing groups, experience exchange groups, etc. A training programme that mixes delivery methods is preferred by enterprise owners/managers. Entrepreneurs are still not comfortable with the E-learning method of training. On the contrary, the owners/managers appear to favour the opportunity to meet other owners/managers and exchange opinions and experiences. In designing and planning the capacity-building pro­grammes and individual modules it is important to link the content to the TNA, as well as its scope and tim­ing to the daily realities of enterprise owners/managers and their staff.

Conclusion

The consultants are the people, who analyse the answers of the people (Gorissen & Tanner, 1996). They just not look at the answers which a person has written verbally but also goes into the depth of the mental framework of the person. A clear understanding and interpretation of these answers help them in designing a training program to bridge the gap between the current situation and expected outcome. Generally it is seen that big companies have a separate department for the management and development of their human resource but small and medium scale enterprises lack on this front. Rather the entrepreneurs of these enterprises do not have that kind of mental setup which involves training and development of their human resources. In addition, it is a common belief among them that there instead of introducing any new skill, same old skills should be upgraded to bring improvement in performance. However, the present owner/manager appears more interested in strengthening his/her own managerial skills, rather than exploring a more inclusive manage­ment style, which involves a higher degree of delega­tion of responsibilities to lower levels of management and staff. In line with the more authoritative management style currently prevailing among many enterprises, there is a general hesitation to put enterprise policy, strategy and even practical work instructions in written form. A low level of understanding of the positive impact a human resource management sys­tem may have on the overall management and per­formance of the enterprise seems also to be pervasive, mostly among smaller firms. With the help of TNA the company will be much better prepared than their peers for managing explosive growth in the years to come.

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References

Hasan, D. , 2007. How to Conduct a Training Needs Analysis, [online] Available at:< http://www.dirjournal.com/guides/how-to-conduct-a-training-needs-analysis/> [Accessed 26 September 2012].

Gorissen, A. and Tanner, B., 1996. NEEDS ANALYSIS REPORT. [pdf] Netherlands: Technology Centre Limburg. Available at: < http://projects.elis.org/target/pdf-files/deliverable-1.pdf > [Accessed 26 September 2012].

EU SME PROJECT ALBANIA , 2010. Supporting SMEs to become more competitive in the EU market . [pdf]Albania: DAPO Marketing. Available at: <http://www.eu-sme.al/> [Accessed 26 September 2012].

Susan, J., & Randal, S., Managing Human Resources : A Partnership Perspective, South-Western Publishing.

CORNWELL MANAGEMENT CONSULTANTS plc, 2004. Digital Preservation Coalition Training Needs Analysis. [pdf] Surrey. Available at: < http://www.jisc.ac.uk/media/documents/programmes/preservation/trainingneedsfinalreport.pdf > [Accessed 26 September 2012].

Dwyera, F. , 2007. Training Needs Analysis, [online] Available at:< http://www.ncvo-vol.org.uk/tna> [Accessed 26 September 2012].