a decision model for outsourcing training functions

7/23/2019 A Decision Model for Outsourcing Training Functions

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A decision model for outsourcing training functions :

Distinguishing between generic and firm-job-specific training content


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Training:

Teaching/Developing oneself with skills and knowledge that relate to

specific useful competencies. Training has specific goals of improving

one's capability, capacity, productivity and performance.

To make a successful strategy implementation organization need to train and

develop their employees constantly.Many reputed and established company invest considerable amount in training

Motorola niversity

The !roton vile !enter of "#

Trilogy niversity

Introduction


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Outsource Trainingis an arrangement inwhich one company provides training anddevelopment services for another companywith a certain agreement.

When company chooses its own systems ortools for training that will be In-housetraining.

Outsource Training Vs. In-houseTraining:


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Benefts or Outsource or In-house Training


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#mployee training is one of the mostly outsourced management

functions. Diversified training re$uired for efficient employees.

T!# will %rovide useful information for choosing Training &ystem.

y analyzing(Firm Size, Asset Specificity of training, frequency training,

availability of training service in market

)n )merican *esearch shows that(

Practice o Training Outsourcing


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Transaction cost economicsResource-based view of the firmEconomies of scale eectsFirm SizeDevelopment of the market for training services

Administrative innovation theory

Development of the market for training services

Theories


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Hypotheses

Size of

Firm

Investment andexpertise in

training

Freqency oftraining

training as sorce ofcompetitiveadvantage

!sset speci"city intraining

#arket

development fortraining services

$erceivedbene"ts

from

otsorcing trainingservices

%xtent ofotsorcin

g in

trainingservices

&'

&(

&)

&*

&+

&,

&-


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Srvey was condcted in reece '// &0 directors were selected for the

stdy.

1ota sampling was sed and it wasattempted for the sample strctre tore2ect the poplation strctre3 in terms of"rm activity and size.

Research Methodology:


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igure !represents the classi"cation ofthe sample companies by activity

sector.


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igure "represent the classi"cation ofsample companies by size3 means nmberof the fll4time employees.


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I#$I#%&

%xplained throgh two #odels #easrement #odel

Strctral #odel

0egression 5oe6cient7

0elationship between Dependent 8ariable andIndependent 8ariable.

Indicates changes

5orrelation7

9ow variables move in relation to each other.


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Measure'ent 'odel or(o)- and co'pany-specifc training

Measure'ent 'odel orgeneric training


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&tructural 'odel or generictraining

&tructural 'odel or(o)- and co'pany-specifc

training.


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+n the case the weight of outsourcing decision analysis is given not on costconsiderations but to gain $uality benefits .

The outsourcing of training functions is done primarily because the

companies do not have sufficient resources i.e. e-pertise investment to

provide for.

ut large and medium sized companies which have e-perience and general

internal e-pertise in providing training services do not outsource training

functions.

+t is because they think their employees will not be ac$uiring the abilities

re$uired to withstand or overcome company challenges and fulfill their

re$uirements if they take training from e-ternal sources.

*onclusion


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It is preferable to provide training internallyand to develop internal traininginfrastrctre and expertise when 7

0 there are very specific company needs, know how,

structures, systems, culture, ob1ective and strategies

that need to be supported through company specific

training.

2 internal e-pertise in providing training is ade$uately

developed and the company has put much effort andresources in order to develop this function in3house.


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It is best to otsorce training fnctions when7

': 9he company seeks to by in new ideas3

scarce expertise and an ;ot of the box

a decision model for outsourcing training functions

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