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    Lesson: 18

    Training and Development:

    Contents:

    o Definition of training and developmento Nature of training and developmento Distinction between training, development and educationo Importance and purposeo Advantages and disadvantages of training

    We know that successful candidates placed on the jobs need training to performtheir duties effectively. Workers must be trained to operate machines, reduce scrapand avoid accidents. It is not only the workers who need training. Supervisors,managers and executives also need to be developed in order to enable them togrow and acquire maturity of thought and action. raining and developmentconstitute an ongoing process in any organi!ation. his chapter is devoted to adetailed discussion on the nature and process of training and development in atypical industrial establishment.

    Training could be compared to this metaphor - if I miss one meal in a day, then I will starve to death. The survival of the organization requires development throughout the ranks in order to survive, while training makes the organizationmore effective and efficient in its day-to-day operations.

    "s a brief review of terms, training involves an expert working with learners totransfer to them certain areas of knowledge or skills to improve in their current

    jobs. #evelopment is a broad, ongoing multi$faceted set of activities %trainingactivities among them& to bring someone or an organi!ation up to another threshold of performance, often to perform some job or new role in the future.

    ' Training is the formal and systematic modification of behaviour throughlearning which occurs as a result of education, instruction, development and

    planned experience.( %"rmstrong, )**+ - /&

    Development is any learning activity, which is directed towards future, needsrather than present needs, and which is concerned more with career growth thanimmediate performance.

    ature of Training and Development!

    In simple terms, training and development refer to the imparting of specific skills,

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    abilities and knowledge to an employee. " formal definition of training anddevelopment is $ it is any attempt to improve current or future employee

    performance by increasing an employee0s ability to perform through learning,usually by changing the employee0s attitude or increasing his her skills and

    knowledge.

    he need for training and development is determined by the employee0s performance deficiency, computed as follows

    Training and development need" standard performance-actual performance

    Training, Development, and #ducation

    12# programs are divided into three main categories raining, #evelopment,and 3ducation. "lthough some organi!ations lump all learning under 4 raining4

    or 4 raining and #evelopment,4 dividing it into three distinct categories makesthe desired goals and objects more meaningful and precise.

    "s discussed earlier $ Training is the acquisition of technology, which permitsemployees to perform their present job to standards. It improves human

    performance on the job the employee is presently doing or is being hired to do."lso, it is given when new technology in introduced into the workplace.

    ducation is training people to do a different job. It is often given to people whohave been identified as being promotable, being considered for a new job either lateral or upward, or to increase their potential. 5nlike training, which can befully evaluated immediately upon the learners returning to work, education canonly be completely evaluated when the learners move on to their future jobs or tasks. We can test them on what they learned while in training, but we cannot befully satisfied with the evaluation until we see how well they perform their new

    jobs.

    Development is training people to acquire new hori!ons, technologies, or viewpoints. It enables leaders to guide their organi!ations onto new expectations

    by being proactive rather than reactive. It enables workers to create better products, faster services, and more competitive organi!ations. It is learning for growth of the individual, but not related to a specific present or future job. 5nliketraining and education, which can be completely evaluated, development cannotalways be fully evaluated. his does not mean that we should abandondevelopment programs, as helping people to grow and develop is what keeps anorgani!ation in the cutting edge of competitive environments. #evelopment can

    be considered the forefront of what many now call the 6earning 7rgani!ation.#evelopment involves changes in an organism that are systematic, organi!ed, andsuccessive and are thought to serve an adaptive function.

    We can make a distinction among training, education and development. Such

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    distinction enables us to acquire a better perspective about the meaning of theterms. raining, as was stated earlier, refers to the process of imparting specificskills. 3ducation, on the other hand, is confined to theoretical learning inclassroom.

    The following table draws a distinction between training and education moreclearly.

    Training #ducation

    "pplication heoretical orientation

    8ob 3xperience 9lassroom learning

    Specific asks :eneral concepts

    ;arrow perspective anagers

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    What echnical ? >echanical heoretical ? conceptual7peration ideas

    Why Specific job related :eneral knowledgeinformation

    When Short term 6ong term

    o bring the distinction among training, education and development into sharpfocus, it may be stated that the training is offered to operatives, whereasdevelopmental programmes are meant for employees, their gradesnotwithstanding.

    Activit!:"esearc# on t#e concepts of $entoring and %estibule training

    Importance of Training and Development!

    raining and development programmes, as was pointed out earlier, help remove performance deficiencies in employees. his is particularly true when @

    9) he deficiency is caused by a lack of ability rather than a lack of motivation to perform,

    II& he individuals involved have the aptitude and motivation need to learn to dothe job better, and

    61) Supervisors and peers are supportive of the desired behaviors.

    here is greater stability, flexibility and capacity for growth in an organi!ation.raining contributes to employs contribute to the stay with the organi!ation.:rowth renders stability to the workforce. =urther, trained employees tend to staywith the organi!ation. hey seldom leave the company. raining makes theemployees versatile in operations. "ll rounder can be transferred to any job.=lexibility is therefore ensured. :rowth indicates prosperity, which is reflected inincreased profits form year to year. Who else but well$trained employees can

    contribute to the prosperity of an enterpriseA

    "ccidents, scrap and damage to machinery and equipment can be avoided or minimised through training. 3ven dissatisfaction, complaints, absenteeism, andturnover can be reduced if employees are trained well.=uture needs of employees will be met through training and development

    programmes. 7ganisations take fresh diploma holders or graduates as apprenticesor management trainees. hey are absorbed after course completion. raining

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    serves as an effective source of recruitment. raining is an investment in 12 witha promise of better returns in future.

    The purpose of training

    he aim of training is to help the organisation achieve its purpose by adding valueto its key resource @ the people it employs. he purpose of training is to

    o increase productivity and quality

    o promote versatility and adaptability to new methods

    o reduce the number of accidents

    o reduce labour turnover

    o increase job satisfaction displaying itself in lower labour turn$over andless absenteeism

    o increase efficiency

    Analysing training needs

    =or training to be effective, it is important to not only discern the training needs of the individual?group but also how their needs fit the overall objectives of the

    organisation.>any organisations invest considerable resources in training and development butnever really examine how training and development can most effectively promoteorganisational objectives, or how developmental activities should be altered in thelight of business plans.

    %

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    17. 1elps keep costs down in many areas, e.g. production, personnel."dministration, etc.

    18. #evelops a sense of responsibility to the organi!ation for being competent

    and knowledgeable.

    19. Improves labor$management relations.

    20. 2educes outside consulting costs by utili!ing competent internalconsulting.

    Disadvantages of training

    1. 9an be a financial drain on resourcesD expensive development and

    testing, expensive to operateA2. 7ften takes people away from their job for varying periods of timeD

    3. 3quips staff to leave for a better job

    4.

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    raining is the provision of guided experience to change behaviour,attitudes or opinions

    raining needs analysis identifies specific gaps which training is

    designed to fill

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    4 he big work behind business judgement is in finding andacknowledging the facts and circumstances concerning technology, themarket, and the like in their continuously changing forms. he rapidity of modern technological change makes the search for facts a permanentlynecessary feature.4

    Intellectual capital is fast becoming the asset base of companies and their strategies for growth. In the current global economy when companies arefaced with rapid changes, the ability to continuously seek, adapt and applynew skills would be the order of the day. In such a dynamic situation,where the skills and knowledge of people and organisations are becomingredundant and useless, success in business and its growth would requirespecial emphasis on learning, education and training that is both flexibleand relevant in the current scenario.

    he demand for an effective training system for insurance intermediariesemerges not only from the insurer, or the regulator or the intermediaries

    but also from the consumer. hese demands will go a long way to makinginsurance training and education establishments more accountable andstrategic.

    Intermediaries are seen as the key differentiator of an insurance business,and hence their selection, training, development and support mechanismmust be continuously monitored and updated.

    hey are expected to identify customer needs for insurance, help themmake the appropriate choice of product?s, enable the customer to meet thedeadlines for renewal of payments, and resolve queries and facilitatesettlement of benefits in the minimum time frame possible.

    he insurance business is dynamic and changes are rapid, henceintermediaries, being knowledge workers, require a special learningdiscipline in order to continue with upgraded knowledge and skills.

    7bservations of the functioning of intermediaries in the present dayinsurance industry show that there is a major gap between what isexpected of them and what they actually deliver.

    hese may be attributed to several factors such as

    1 Insurance products %life& are viewed more as investmentand tax$saving products

    2 Insurance solutions are bought and sold on the basis of relationship and referrals

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    1 6ow productivity expectations from the intermediary

    2 ;on$availability of any prescribed?recognised pre$

    recruitment or post$recruitment training for intermediaries3 6ow awareness level of insurance requiring customer

    education

    herefore, for an effective training approach, knowledge of these together with global factors like changes in communication technologies, people0sexpectations and apprehensions and the current scenario of the privatisedinsurance sector become a necessity.

    he present education system for intermediaries should become more

    accountable to deliver competencies in a more personalised manner andwithin a short span of time.

    It shouldn0t only demand traditional intellect and applications, but alsostress creative and inventive thinking, knowledge of information Fcommunication technologies and self$motivation competencies thattraditional classroom training fails to achieve.

    here is, however, a dearth of professional institutions in India offering practical training for the insurance industry. he Insurance 2egulatory F#evelopment "uthority has undertaken some training initiative by

    prescribing +** hours of pre $recruitment practical training for everyintermediary, to be followed up by a mandatory qualification testconducted by the Indian Institute of Insurance or by the ;ational Stock 3xchange.

    =or an example of effective vocational training, we can look at the 5J0suse of ;ational Eocational Kualifications. he central feature of ;EKs isthe ;ational 7ccupational Standards on which they are based. ;7S arestatements of performance standards that describe what competent peoplein a particular occupation are expected to be able to perform.

    hey cover all the main aspects of an occupation, including current best practice, ability to adapt to future requirements and the knowledge andunderstanding that underpin competent performance. Standard$setting

    bodies, mainly employer$led ;ational raining 7rganisations, develop thestandards.

    Since the insurance business is dynamic and changes are rapid, it isessential for insurance intermediaries as knowledge workers to be familiar with the special learning skills required to be successful.

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    1ence there is an absolute necessity for co$ operation and collaboration between private and government agencies in India to supply the speciallearning preferred by the insurer and the government regulator.

    In such a scenario, competencies, training and assessment methods arestandardised. 6ists of programmes with accredited institutes are publishedfor public information. Institutes are identified through a selection andaccreditation process, and then certified to provide different qualificationsand certificates.

    he main purpose of the vocational training system is to supply theinsurance industry with the necessary manpower. It provides motivation tostudents to learn and also equips them with a practical and appliedunderstanding of the industry.

    It also pays more attention to the skills and knowledge students need for an effective transition from school to the working environment. heworkplace of the future will require new and different skills from allworkers not just job$specific skills, but also transferable, generic skillsthat will help them to acquire further education and training throughouttheir careers.

    In a world of rapidly changing business situation, the ability to respond positively to the challenges and opportunities are combinedresponsibilities of the stakeholders of that industry.

    In this context of accelerated change and dynamic business in theinsurance industry, training effectiveness for the intermediaries can be

    provided with excellence through the combined effort of the trainingoutfits, which include both the insurer0s training department and theinstitutes, the insurer and the regulator.

    It is to this end that educators are working to develop cost $effective andreliable methods to provide learning, motivate students and achieveresults. In this way there would be further improvement in trainingeffectiveness for intermediaries, thus adding value to their profession andachievements.

    Source: (The author is the general manager & head of training at INGVysya Life)

    at Is 'rgani(ation Development) *Article +

    Training - Development , "ugust )***

    http://www.findarticles.com/cf_0/m4467/mag.jhtmlhttp://www.findarticles.com/cf_0/m4467/mag.jhtmlhttp://www.findarticles.com/cf_0/m4467/mag.jhtml
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    Info$line is "S #Hs how$to reference for training and performance professionals, with practical, concise information in an easy$to$readformat that gets readers up$to$speed on training topics in a matter of minutes.

    he following excerpt has been adapted from 4Crinciples of 7rgani!ation#evelopment,4 a revised issue by 2ima Shaffer, Info$line ;o. LL+).

    It is both sad and ironic that we have treated organi!ations like machinesDacting as though they were dead when all this time theyHve been living,open systems capable of self$renewal.

    >argaret Wheatley, 6eadership and the ;ew Science

    Caradoxically, the one constant in organi!ational life is change. odayHsorgani!ations must change frequently to keep up with rapid changes in theworld around them and the people within them. "ny change carries risk,especially if it is hapha!ard. hat is why the keys to organi!ational changeare attention to process and focus on goals and organi!ational values. "ndthat is what organi!ation development is all about planned change.

    M 7rgani!ation development is the planned process of developing anorgani!ation to be more effective in accomplishing its desired goals. It isdistinguished from human resource development in that 12# focuses onthe personal growth of individuals within organi!ations, while 7# focuseson developing the structures, systems, and processes within theorgani!ation to improve organi!ational effectiveness.

    " successful 7# process can result in the following.1* 3ffective strategic and operational plans

    2* eam development and effectiveness

    3* 6eadership development

    4* "dded value, quality, competitive products, or services.

    9hange is the intended goal. #evelopment $$increased capacityand potential for effectiveness$$is the purpose.

    Warner

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    1* 2esponds to an actual and perceived need for change on the partof the client

    2* Involves the client in the planning and implementation of thechange

    3* 6eads to changes in the organi!ationHs culture or systems.

    While no panacea, 7# functions as an enabler, establishing systems or removing obstacles to increase the organi!ationHs potential foreffectiveness and success in achieving its desired outcomes.

    raining and 7#

    So, what does 7# have to do with trainingA Clenty.

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    mplo!ee Training andDevelopment

    #efinitionN raining is the formal and systematic

    modification of behaviour through learningwhich occurs as a result of education,instruction, development and plannedexperience.(

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    1 #ifference