Training for Excellence at Wegmans Food Markets - Essay Example

? Case Study: Training for Excellence at Wegmans Food Markets April 10, CASE ANALYSIS Case Study: Training for Excellence at Wegmans Food Markets Introduction Wegmans Food Markets is a regional supermarket chain with headquarters in Rochester, New York. It is one of the top 75 U.S. supermarkets in terms of sales volume and is respected in the supermarket industry. This case underscores the role of training in the success of Wegmans. Wegmans is successful not only financially, but also in terms of human resource management. It has consistently appeared in Fortune’s list of 100 Best Companies to Work for, since Fortune started compiling it. The question now is how Wegmans can improve its training system better, so that it does not only measure store sales, but also evaluate changes in employee reaction, learning, and behaviour, as well as changes in results that pertain to customer satisfaction and customer loyalty. Problem Statements Challenge 1: The inclusion of new measures in assessing training effectiveness: “Wegmans measures the success of its training based on whether a store’s sales are growing.” Challenge 2: Changing the training process to include approaches that will be effective in influencing the new measures of training effectiveness: “Wegmans uses a blended approach to training, combining classroom sessions with on-the-job learning.” Challenge 3: Understanding the connection between employee satisfaction and delivery of services that result to customer satisfaction and customer loyalty, because customer satisfaction and customer loyalty can also impact organisational succcess: “This vision of training assumes that people who understand what they are selling and who care about customers will naturally be able to sell by providing value to the customers...” Solutions Solution 1: It would be useful for Wegmans to expand the results it measures. At present, it only measures training effectiveness through store sales. In order to remain competitive, it must have a human resource (HR) strategy that fits its organisational strategy, and it can do so by doing its training differently from other supermarket chains and competitors (i.e. substitutes that do not directly compete with Wegmans, such as farmers that directly sell their goods at residential subdivisions). A different kind of training will need a different set of measures, so that the training process can improve the connection between positive reaction and learning to behavioural changes, and results. In Ibrahim’s 2004 study on training effectiveness for 94 trainees, findings showed that the training program resulted to positive reactions and improvement in trainee’s knowledge and skills. This study has not established a direct link between positive reactions and employee and organisational performance, but it does suggest a potential relationship between training reaction and knowledge and skills development. Giangreco, Sebastiano, and Peccei (2009) suggest the importance of training reaction to training usefulness. Thus, it will also be fruitful for Wegmans to measure training reaction and learning, aside from its usual focus on the effect of training on store sales, so that it can enhance its training effectiveness. Solution 2: Changing the training process to include approaches that will be effective in influencing new measures of training effectiveness can also improve training strategy at Wegmans. At present, “Wegmans uses a blended approach to training, combining classroom sessions with on-the-job learning.” This means that Wegmans predominantly uses apprenticeship training. In order to identity additional training methods, it is important to conduct training needs analysis for both shop-level employees and management. The two main ways that can be used to analyse training needs are task analysis and performance analysis. Task analysis will focus on the kind and frequency of tasks performed, as well as where and how they can best be learned. Performance analysis will be conducted through attitude surveys, interviews with employees and supervisors, and different performance review sources, especially peer, self, and supervisor reviews. These analytical tools should be able to determine new training needs and priorities. At present, it seems that the most evident training need is in managing stock ordering and control, a typical concern for large supermarkets like Wegmans (Fuller et al. 2009, p.106). This would require employees to learn how to use information technology that can improve inventory management skills and knowledge (Fuller et al. 2009, p.106). It is suggested that Wegmans apply the Electronic Performance Support Systems (EPSS), which are sets of computerized tools and displays that efficiently automate and combine training, documentation, and phone support. Employees should be able to learn how to use EPSS that will enable them to determine and control stocks, so that fast-moving products are timely restocked and non-moving products are slowly removed from the inventory. Stock management efficiency can improve customer satisfaction and sales through lower stock costs and ensuring that the stocks are what customers need. Phone support is important to ensure technical support to employees who will directly be involved in stock management. Simulated learning will specifically be important to EPSS, because it can provide software training and simulated training activities. Employees can solve case studies online, where they manage (virtual sense) day-to-day operations for one peak-season month and one non-peak-season month. It is time for Wegmans to embrace an integrated and automated approach to training, so that documenting and measuring training reaction, behaviour, learning, and results can be done more efficiently and effectively. Solution 3: It is important to understand the connection between employee satisfaction and delivery of services that result to customer satisfaction and customer loyalty. Wegmans already place importance on employee learning and engagement. Learning is facilitated through a supportive organisational environment, while the organisational culture of helpfulness and customer service focus helps engage employees. However, Wegmans does not have any focus on the measurement of employee satisfaction and loyalty and its impact on customer satisfaction and customer loyalty. Coelho and Esteves (2007) examined the non-response rates, response distribution, the ability to affect customer satisfaction, and convergent, discriminant and nomological validity of constructs of a five-point and a ten-point scale. Findings showed that a ten-point scale shows better properties and validity than the five-point scale. It is then suggested that Wegmans develop employee satisfaction and loyalty measures with a ten-point scale and another similar scale adjusted for measuring customer satisfaction and loyalty. A pre and post-test design is recommended. Baseline data for employee satisfaction/loyalty and customer satisfaction/loyalty will be measured before the intervention. Then, five stores will be randomly selected to be the control group with no specialised training focused on customer satisfaction/loyalty, while another five stores will be randomly selected to receive specialised training focused on customer satisfaction/loyalty. Then, post-test results will be measured, where training reaction, learning, behaviour, and results are considered. These measures will also be correlated to store sales to understand the impact of training processes on actual sales performance. Conclusion The supermarket chain industry is becoming increasingly competitive because of competition and changes in macro and microenvironmental factors. It is important for Wegmans to maintain its competitive advantage through a training strategy that will ensure that positive training reaction and learning can shape favourable employee and customer behaviours and results. It is suggested that Wegmans apply the Electronic Performance Support Systems (EPSS) and that pre and post-test design is used to measure the reaction, learning, behaviour, and results of a specialised training focused on customer satisfaction/loyalty. These changes should enhance the usefulness of training to employees and management alike and emphasize the linkages between employee loyalty/satisfaction and customer loyalty/satisfaction. Reference List Coelho, P.S. and Esteves, S.P., 2007. The choice between a five-point and a ten-point scale in the framework of customer satisfaction measurement. International Journal of Market Research, 49 (3), 313-339. Fuller, A., Kakavelakis, K., Felstead, A., Jewson, N., and Unwin, L., 2009. Learning, knowing and controlling the stock: the nature of employee discretion in a supermarket chain. Journal of Education & Work, 22 (2), 105-120. Giangreco, A., Sebastiano, A., and Peccei, R., 2009. Trainees' reactions to training: an analysis of the factors affecting overall satisfaction with training. International Journal of Human Resource Management, 20 (1), 96-111. Ibrahim, M.E., 2004. Measuring training effectiveness. Journal of Management Research, 4 (3), 147-155. Read More