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Business Strategies And Human Resource Management Practices - Case Study Example

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This case study "Business strategies and human resource management practices" discusses global opening economies, the emergence of new communication technologies and increasing pressure on the competitiveness of organizations which have led to major management and strategic changes…
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Business Strategies And Human Resource Management Practices
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Structured Training Process Approach to the Analysis, Design, Delivery, Evaluation of Learning and Development Provision Introduction Global openingeconomies, emergence of new communication technologies and increasing pressure on competitiveness of organizations have led to major management and strategic changes. Training of employees has become vital for adaptation to new technologies and market preferences. With the growing necessity of employee trainings, organizations are also concerned about the effectiveness of their training programs. The organizations fund the training at the expense of other organizational needs, and the results influenced by training can be elusive without a focused evaluation effort to address the outcome (Phillips & Stone, 2002). Returns on such investments are often not clear and measurement of outcome is generally not possible in tangible formats. It is also observed in various studies that organizations, especially small and medium scale organizations, are vary of training programs due to non-clarity of its outcome. This has led to different hypothesis in the field of employee training and various training methodologies have been formulated to overcome the shortcomings of traditional training programs and meet the growing market challenges. Following discussion analyses structured training process approach to the analysis, design, delivery, and evaluation of learning and development provision. It uses the McDonald's training program as an example case to illustrate how a structured training program influence the productivity of employees and performance of business as a whole. Introduction of the Organization McDonald's is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each day. It has an ongoing commitment to employee learning and development, recognizing the importance of helping to build the skills base of their employees and the benefits this can bring to their business with better staff productivity. The company's recruitment policy is opt to its name 'hire and smile'. McDonald's hires people with a diverse range of qualifications, from highly skilled managers to college dropouts and focuses more on human qualities instead of educational qualifications. Its employee training programs are highly structured and are based on the company's core principles of quality, service, cleanliness, and value. McDonald's has also initiated its new employee training program known as 'Skills for Life' to provide an effective training to its employees, in association with the Learning and Skills Council. As a part of its structured training program, McDonald's has also started Hamburger University that acts like a cushion for a highly skilled human resource development initiatives of the company. Structured Training Process Structured training process is setting and controlling the various training activities that facilitate a proper analysis, design, delivery, and evaluation of training that leads to development of human resources. Structured training is defined as a training activity with specific content that has a predefined objective and predetermined format, and whose progress can be monitored and/or evaluated. On-the-job training, on the other hand, is informal and does not necessarily have a predetermined format. It is generally conducted in the workplace itself (Guide to the Analysis of the Workplace and Employee Survey, 2001, Statistics Canada). It often relies on simulations of real time events. Structured training programs consist of certain predefined simulated organizational tasks that require a prompt response from trainees. It also incorporates a structured approach for feedbacks to improve performance of employees and the training process itself. Structured training programs have several advantages over traditional training. Some of the major benefits of structured training process are as follows: Focus on objectives Limiting the tasks and focusing on the feedback. Timely identification and correction of training deficiencies Reinforcement of specific task performance Assessing the employees' readiness level Some professional trainers argue that the structured training programs are generally not flexible up to desired levels and leave little scope for creativity. Implementations of these programs are well defined in advance and modifying these programs according to changing business needs often creates problems. Several author and researchers advise different sets of techniques to overcome these problems. Korte (2006) points out that since every contingency cannot be identified ahead of time and learners can be fickle, during the implementation phase trainers must clearly understand what is to be achieved and have an adequate repertoire of methods and techniques with which to achieve it. Analysis of Learning and Development Provision Analysis of learning and development requirements of the organization is important to create a high impact learning development. A proper analysis creates an environment where organization can realize full potential of its employees and help them in enhancing their contribution to their workplace and their personal life. For a large organization of McDonald's size with a large number of diverse workforces, the analysis of human resource development provisions gets more complex. Growing market competition in retail sector has forced McDonald's for a system analysis of its training and development needs. Analysis leads to design, implementation and execution of an effective structured training process that helps the organization in achieving its human resources strategic objectives. Design of Learning and Development Provision Design of learning and training programs depend upon the set objective, time frames, budget and employees' receptiveness. It also depends upon the average qualification of peoples being trained. Instructional design models that suit to organization's need can act as a guideline for designing learning and development provisions. Instructional design is considered most effective learning tool. There are several instructional design models but most of these models are based on ADDIE (Analysis, Design, Development, Implementation, and Evaluation) model. Instructional design models are cognitive in nature and consider a normal human psychology. In the case of McDonald's, learning and training programs are designed as a self motivating and enlightening programs which employees can participate at any time on their wish. This gives a wider acceptance of training programs. If it had been a rigid program at a certain time and several prerequisites it might not have generated the kind of response it receives at present. Since McDonald's majority of employees are in their first job and often not highly educated, design of the training program needed to be more simple and flexible in comparison to the organizations where employees are required to have a lot of experience and degrees for example in IT sector. Along with the development of the skills that improve productivity of employees at the workplace, the design of an ideal structured training process should include the provisions that help the employees to improve their lifestyles, motivation levels and shape their career path opportunities and overall competitiveness. McDonald's training process focus mainly on soft skills of employees which boost employees' confidence and motivational level in the workplace. This is reflected by the competitive edge of the organization in food retail sector. Cognitive Load Theory and the Design of Structured Training Program Cognitive load theory for design of structured training program is based on the hypothesis that the format of instructional materials has a direct effect on the performance of the learners. Sweller's (1991) work shows that receptiveness of training materials and effectiveness of any instruction material is directly affected by working memory load of trainees. Instructional design models are generally categorized as community and project oriented models. Effectiveness of these models has been subject of debate between academicians and managers but, in general, community based instructional design models are considered more effective where there is a need for continuous training of large workforce in long terms. Community based need to be more structured to give tangible results. In the case of McDonald's project oriented training is not effective as the organization do not work on per project basis. Employees in retail sector organizations such as McDonald's need to be trained in broad categories of soft skills which requires a continuous long term efforts. Delivery of Learning and Development Provision Delivery of training program is most critical part of any structured training process. The table below outlines some of the best fit techniques used for training delivery. Learning Methodologies Mode of Delivery Group based learning Instructor led classroom instruction; this method is generally more time consuming and may not be received well employees Block release Workshop (including practical activities) E-Learning with instructor; this is a more effective method for training delivery Individual learner or small group Small group tutorials E-Learning with instructor Distance learning E-learning with instructor Distance learning with self paced materials Guided workplace learning by employer Project work and mentoring by employer; this is most preferred techniques for employee traing Studies in various organizations show that the alignment of learning preferences of employees with the self-directed and independent learning of flexible delivery is the major problem. McDonald's has, over time, developed strategies and businesses practices to develop employees and managers that adopts well with a structured training process and still have benefits of flexible training delivery. Development of an effective structured employee training process involves a thorough analysis of organization's training needs, an effective instructional design and use of appropriate delivery channels. McDonald's 'Skills for Life' program uses web-based systems for dissemination and effective reach of its training program to its employees. Various surveys within the organization show that this training delivery method has a better reach and acceptance between employees in comparison to the McDonald's various other training programs. There could be several innovative delivery channels that may help in overcoming the perceived lack of flexibility and creativity of structured training programs. McDonald's uses a visual and easy to understand web-based delivery format. Interface of its learning program has been designed be Chicago-based NogginLabs. In this format of online training employees are presented to simulated real time scenarios according to their preferences. This type of delivery method is best suited to train large number of workforce while giving them flexibility of choice. The new e-learning based training has helped McDonald's to solve the problems of lack of management participation in new employee training process. It was often the case that an employee had to learn everything by himself and on his first day on the job he was totally novice of the company and its culture and even his duties. But the implementation of new structured training process has helped, according to Danya Proud, a spokesman for McDonald's, the organization to train new recruits before they join their regular duties. Evaluation of Learning and Development Provision Evaluation of learning program is an ongoing process. Training programs in organizations need to be updated regularly according to changing business scenarios and alignments in business objectives. Feedbacks of evaluation process help in finding out deficiencies in the program and help the training managers in redesigning of learning programs. Effective training and learning evaluation systems try to solve the questions such as to what extent the training achieved its objectives and to what extent has the training process achieved a Return on Investment for the organization, either in terms of identified objectives satisfaction or, where possible, a monetary assessment (Kirkpatrick, 1976). Academicians and researchers have proposed several models and theories for training process evaluation such as Donald Kirkpatrick's training evaluation model, Erik Erikson's Psychosocial (Life Stages) Theory, Multiple Intelligence theory, Kolb's model, VAK learning styles model and Conscious Competence learning stages theory. These models and theories primarily focus on trainees, natural abilities and individual potential. Employees' feedbacks are a major scale for evaluating effectiveness of training programs. They should be actively engaged in complete evaluation lifecycle. Rae and Gower (2002) have suggested a quintet of senior management, trainer, line management, the training manager and the trainee for evaluation of training process. Recommendation First and foremost requirement before formalizing a structured training program is to analyze and understand broad organizational objectives. A thorough assessment of employees' strengths and weaknesses and how it maps with organizational requirements should be done. Assessment generally includes analysis of several factors such as future market direction, competition, technological evolutions and required skills. A formal prioritizations and organization of training and development activities is necessary for an effective delivery of training. Staff turnover ratios, exit interviews, customer satisfaction surveys, staff satisfaction surveys often lay an outline for training initiatives. Various other inputs such industry reports and organization's competitive intelligence help in understanding own weaknesses and structuring training activities. Employees should be made to clearly understand relationships between training, qualifications, job grades and pay appraisal levels. From a management perspective return on investment in training of employees is a major deciding factor. Training schedules and structure should be cost-effective which means organization should be able to measure outcome and benefits of training programs in clear terms and comprehend a reasonable advantage in offering these trainings. Budget allocations for these activities are generally affected with the perception of cost effectiveness and benefits of the training programs. In retrospect, organization can afford a training program to a limit where implication of such activities overweighs their cost. Time is also an important factor in deciding training activities as it directly translates to the cost of training. Any structured training program should consider a delivery method that satisfies the objectives in a timely manner. It is also very important due to fast changing market dynamics, a training program may be outdated if it extends beyond a certain time. Time constraints require constant upgrades of training programs. Conclusion The above discussion highlights the importance of structured training program in today's competitive market place. Training of employees has become a critical factor to adopt ever changing market demands and increasing pressure of competitors. Bottlenecks especially in service and information technology sector have necessitated a strategic inclusion of employee training as a business activity. McDonald's human resource development and training policy helps the organization to ensure that each and every employee, from the day they assume duty in the company participates in a properly structured training process. This has helped the company to retain and develop its vast human resources and enhance the performance of its existing workforce. The above discussion also shows that a structured training process can be effectively used by the organization to analyze, design and delivery of training programs to a large workforce and broader objectives of employee empowerment through equality of access of training materials by all employees at all levels and life-long learning can be achieved objectively. References: 1. Ronald L Jacobs, (2003), Structured On-the-Job Training: Unleashing Employee Expertise into the Workplace, Berrett-Koehler Publishers; 2nd edition. 2. Phillips J., Stone, R. (February 27, 2002), How to Measure Training Results: A Practical Guide to Tracking the Six Key Indicators, McGraw-Hill; 1 edition. 3. Employee Training Decisions, Business Strategies And Human Resource Management Practices: A Study By Size Of Business, 2006, http://strategis.ic.gc.ca/epic/site/sbrp-rppe.nsf/en/rd02059e.html [Accessed 1 November 2008]. 4. Guide to the Analysis of the Workplace and Employee Survey, (2001), Statistics Canada, http://www.statcan.ca/bsolc/english/bsolccatno=71-221-GIE2003001&ISSNOTE=1 [Accessed 1 November 2008]. 5. Korte, (2006), Training Implementation: Variations Affecting Delivery, Advances in Developing Human Resources, Vol. 8, No. 4, 514-527. 6. Peter J. Smith, (2000), Flexible delivery and apprentice training: preferences, problems and challenges, Journal of Vocational Education and Training, Volume 52,Number 3, pp. 483-503(21), Routledge, part of the Taylor & Francis Group 7. McDonald's Corporation, Available at: http://www.mcdonalds.com/corp/about.html [Accessed 1 November 2008]. 8. Chandler, P. & Sweller, J. (1991). "Cognitive Load Theory and the Format of Instruction." Cognition and Instruction (4): 293-332. 9. Simpson, Ian and Kitchen, Anne. Structured Training Programs and Operator Competence Assurance [online]. In: 60th Appita Annual Conference and Exhibition, Melbourne, Australia 3-5 April 2006: Proceedings; pages: 129-134. 10. Rae, L., (2004). Workplace learning evaluation content and tools, Available at: http://www.businessballs.com/trainingprogramevaluation.htm [Accessed 1 November 2008]. 11. Kirkpatrick, D. L., (1976). 'Evaluation of Training', in Training and Development Handbook, edited by R. L. Craig, McGraw-Hill. Read More
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