managing human capital assignment

Managing Human Capital Assignment

A Research Paper Submitted in Partial Fulfillment

of the Requirement for the Course

201010-MBA1-MHC-Managing Human Capital

ByPhung Phuong Linh

(ID: L0063NDND0210)Dec 15, 2010

To

Teacher: David HallTeacher: Rajendra Kumar

PHUNG PHUONG LINH L0063NDND0210

http://portal.lsclondon.co.uk/resources/course/view.php?id=465

Contents

PART I: Overview of the Topic

I. Introduction

A. Concepts of Training

B. Purpose of Training

II. Types of Training

A. On-the-job Training

B. Off-the-job Training

C. Benefits of Traning

PART II: Training and Development methods in Actual Organization

I. Introduction

II. Methods of Training

III. Effectiveness of Training

A. Advantages

B. Disadvantages

IV. Recommendation

V. Conclusion

PART III: Preferences


PART I: Overview of the topic

I. Introduction

In today business, when market becomes very competitive. Therefore, change in

management is necessary and crucial task for any organziation. Those people who

work in Human Resouces field are now facing more and more complex factors than

in the past. Training and development is one of the recent obstacles as it emerged as

an important management stratey in every organization. Chris Landauer used to say

“Training is something we hope to integrate into every manager’s mind set” (Dessler

2002, p.316). Why did he say it? Human Resouces Management now has to

understand the concepts of training and apply them corectly in actual organization.

However, understanding and applying in reality is two things completely difference.

Not many management succeed with that. Statistic showed “85 percent of training

department heads have never read a copy of their own company’s strategic plan or

annual report” (Donahue 2007, p.1). Isn’t it surprising? It does not make sense to say

that these managements did not understand the role of training in their organizations.

This assignment will exploit in more detail the concepts of training how it applies in

actual organization.

D. Concepts of Training

There are several definitions about training that we can look through books, internet

and other sources. According to Dessler “Training is a process whereby people

acquire capabilities to aid in achivement of organization goals” (Dessler 2002, p.317).


In my understanding, training is to organize progames, instruction or activities in

which organization aimed to transfer information needed in order to gain employees’

knowledge and skills in their fields.

E. Purpose of Training in Organization

Reading books or just simly click the mouse on Human Resouces Management

topics, we can easily see the term training and development always exist together.

That must be a reason. There is no doubt that the main purpose of training is to

develop the organization, but that’s not all. Training also help to “improve employee

performance and skills, avoiding managerial obsolescence, preparing for promotion

and managerial succesion and satisfying personal growth needs” (Introduction to

Human Resource Management 2010).

In order to keep the company growing and surviving in this competiveness market,

Human Resouces Management has to determine programes base on the organization’s

and employee’s needs. Each program should be conducted suitable for difference

group of employees such as: old staffs, new-coming staffs, account or technichian…

etc.

II. Types of Training

“In This Business, You Are What You Know! Keeping your skills and abilities up to

date in today’s on demand environment is a critical component to your success. IBM

now makes it easy for you to enjoy the technical training you need to maintain that

edge” (IBM email, August 2005). The message above is one example of several types

of training methods exist in recent days. There are a lot of way to characterize the


training methods, but in the simplest way to classify those methods is to devide those

methods into two groups are: On-the-job-training and Off-the-job-training.

A. On-the-Job Training

This group of training methods include: job instruction training, apprenticeship,

coaching, job rotation, internships and orientation; which are applied when the

employees are actually doing their jobs. This can also be seen as the cheapest way

of training as the employees can gain their knowledge and skills by not losing

their working time and it would be the best advantage for these types of methods.

(Introduction to Human Resource Management 2010).

Job Instruction training: this method is using by most of organization, especially

in small business because it is the cheapest way to train. In additional, it is crucial

for new person to know the process of his or her jobs and how the company runs

daily work.

Apprenticeship: this method requires long period of training to guarantee that

trainees attain a proficiency in work. Trainees are usually under instruction of

supervisors or expert in the company, it would help them to learn theory and gain

knowledge during actual work time.

Job rotation: with this kind of method, employees are rotated to different

department within the company in order to gain expericences in broanden aspect.

But the most important thing is to let the employees how work in each department

work and interact with each other, so that they can improve to cooperate with

their colleagues in future.


Internship: Employees in certain field which require skills such as: technicians,

surgeon…etc; because they need to have a chance to apply what they had learn in

theory into practices (Type of Training, p1)

B. Off-the-Job Training

Off-the-Job training refers to those methods which require employees away from

their daily works for training such as: classroom lecture or seminar, case study,

observation assignment, experiential exercises, role play and programmed

instruction. With these methods, the cost for training is quite high, so it seems

very difficult for small business to afford it.However, the knowledge from outside

sources is very useful for any organization, but off-the-job are usually conducted

for supervisors or managers and executive position. These people are very

important in a company as their effect directly on the company’s profits and

reputation. However, letting these people to join the training programs sometimes

do not receive effective results as expected because some of them may have

limited knowledge about the products/services. Beside that, they don’t really

know about the real situations happening in market such as: competitors,

customer expectation and needs…etc.

Classroom lecture and Seminar: is happening very frequently in today business.

One of the examples for this method is HSBC as its training programs are often

conducted as classroom based which bring people together to learn and to

network. Through these events, attenders have opportunities to update

information on what is going on with business. They also can meet and learn

experiences from other people who come from difference organization, or they


can raise issues that need support from other to solve those problems. (Training

and Development)

Case Study/Observation Assignment: These two methods allow people taking

their time to exploit and to seek for depth information of one actual issue. During

studying period, they may learn how to respect other’s opinions and gain more

knowledge about that topic. Last but not least, they will learn how to cooperative

with others and be responsible in works in order to achieve a good results.

Role play: Group members are assigned to a case of solving problem which

requires them to find a solution or behave like in a real situation. This method

make these employees get use the real situation in work and become sensitive in

solving problems (Training and Development, p.1)

Computer based training: involved all the use of computer such as CD-Rom,

DVD, e-learning. This is a trendy method in today business because of its

benefits, for example, transferring information to employees quickly, provides

flexible learning schedules for employees…etc.

C. Benefits of Training

Training has made significant contribution in all aspect of the business. Training

actually is win-win solution and because it will let the management transfer all

needed information which they think valuabble to improve the employees’ skills,

performance and knowledge in order to acquire an organization goals. In reverse,

the knowledge that employees has received from training is valuable for their

career development in future or at least helping them to perform better in their

role.


PART II: Training and Development methods in Actual Organization

I. Introduction

International Business Machines Corporation (IBM) is a global technology and

innovation company headquartered in Armonk, New York which is the world's fourth

largest technology company and the second most valuable global brand .The

company has more than 400,000 employees in 170 countries and it currently offers a

wide range of infrastructure, hosting and consulting services; a broad portfolio of

middleware for collaboration, predictive analytics, software development and systems

management; and the world's most advanced servers and supercomputers. IBM has

pioneered the corporate operating model for the 21st century, changing from a classic

“multinational” to a global integrated company with a highly skilled global workforce

managed by a common set of value (IBM, p1). “Since its inception, IBM had been

focusing on human resources development: The company concentrated on the

education and training of its employees as an integral part of their development. In

2002, IBM was ranked fourth by the Training magazine on it’s “The 2002 Training

Top 100”. The magazine ranked companies based on their commitment towards

workforce development and training imparted to employees even during periods of

financial uncertainty”. (IBM, p1)

II. Methods of Training: From the beginning, IBM’s top management followed the

company’s norm which was respecting every employee because each employee’s

contribution is important for the organization. According to the father of modern IBM

- Sir Thomas Watson-, “by the simple belief that if we respected our people and


http://en.wikipedia.org/wiki/List_of_the_largest_global_technology_companies

http://en.wikipedia.org/wiki/List_of_the_largest_global_technology_companies

helped them respect themselves, the company would certainly profit.” (Case study of

IBM, p1). Based on that belief, IBM created an employee-friendly in where

employees received well compensated, and no layoffs policy. In additional, IBM was

always focusing on training its employees; therefore the first IBM school-house was

introduced in 1933- after 15 years of its inception. From the beginning until now,

IBM has applied and practiced many methods of training in order to enhance

effectiveness of employees today and prepare them for future such as classroom

lecture, seminar and the most recent method is e-learning. IBM saw the effectiveness

of e-learing as the new method of traing for its employees and other organization’s

employees as well. Bear that in mind, IBM started offering e-learing products to other

companies this new training tools. For exaple: in 2002, American Airlines (AA)

started to use IBM e-learning package to train its attendants. These attendants can

learn “safety and security training” at anytime and anywhere. By November 2002,

AA has completely trained 240.000 flight attendants through this method.

However, IBM is currently applying blended methods by taking 75 percent of

training online and the remaining 25 percent is in the classroom.

Classroom lecture: Managers were sent for educational in programs to Harvard, the

London School of Economics, MIT and Stanford in order to gain their knowledge and

widen their perspectives. Anyone who got an excellent result from this program

would have an opportunity to join the Advanced Managers Schools offered in about

forty colleges including Harvard, Columbia, Virginia, Georgia and Indiana…etc.

Seminar: People who are the highest-ranking executives will be sent to executive

seminars which organized in Brookings Institutions. The purpose of this particular


program is to cover a broad range of subjects including: international and domestic

business, political and economic affairs. Beside that, IBM executives were exposed to

topical events to update many current affairs which are related with the company’s

issues.

Online training: This is currently main method of training of IBM. The company

decided to use e-Learning to train its employees and this decision saved millions of

dollars per year for the company. IBM is divided online training into 2 categories are

Basic Blue Management and Sale Compass.

Basic Blue Management: In 1999, IBM started to use Basic Blue

management training program based on a ’4- Tier’. It was designed to support the

company’s manager training program as the task became too complex to use

traditional methods of training. The principle of Basic Blue was ‘learning is an

extended process, not a one-time event”, and it was based on a “4- Tier”.

4-TIER BLENDED LEARNING MODEL


Sale Compass: As the market become more and more competitive, IBM

could not afford to keep its sales team away from work for a week. However, the first

practice of Sale Compass in 1997 was not success because there was lack of

coordination in the large scale. But with the success of Basic Blue, Sales Compass

had further steps to develop. By using a web browser, the sales personnel of IBM

from around the world could get the same information in order to help sales personnel

broaden their knowledge on various industries, gain selling skills IBM was introduced

this programme to 20,000 sales representatives, client relationship representatives,

territory representatives, sales specialists, and service professionals from around the

world. (Case study of IBM, p1)


Tier 1 Provided access to a lot of information including a database of questions, answers and sample scenarios called Manager QuickViews

Tier 2 The managers were provided with simThe principle of Basic Blue war ‘learning is an extended process, not a one-time event”, and it was based on a ’4- Tier’ulated situations. Senior managers trained the managers online

Tier 3 The members of the group started interacting with each other online

Tier 4 Learning Lab

THE CONTENT OF THE NEW SALES COMPASS

III. Advantages and Disadvantages of Training

A. Advantages

Traditional methods such as classroom lecture and seminar still bring a lot of

advantages to manager level, no matter e-training has emerged as one of the best way

of training is chosen by many organization. Managers need to meet up with other

people to update all current affairs within their industry and exchange their

experiences on business field with people from difference orgainzation as we are

living in globalization world. Mr Rick Horton-general manager of learning services at

IBM said “The classroom is still the best in a high-technology environment, which

requires hands-on laboratories and teaming, or a situation where it .is important for


SOLUTIONS

13 Courses

INDUSTRIES

23 Courses

PERSONAL SKILLS

2 Courses

SELLING SKILLS

11 Courses

TOOL and JOB AID

4 Aids

the group to be together to take advantage of the equipment.”. (Case study of IBM,

p1)

On the other hand, the advantages of e-training are so obvious for everybody to

regconize. This new learning environment saves huge costs for organization,

especially to those global companies.

IBM’s cost savings through E-Learning

Program Saving in 2000 (in US $million)

Basic Blue 16.0Going global 0.6Coaching simulators 0.8Manager Quick-Views

6.6

Customer-Room 0.5Sales Compass 21.0

In 2002, IBM had emerged as the company with the largest number of employee’s

who have actually taking e-Learning courses. According to Andrew Sadler – director

of IBM Mindspan Solutions said “all measures of effectiveness went up. It’s saving

money and delivering more effective training, while at the same time providing five

times more content than before.” (Case study of IBM, p1). In additonal, e-learing

provides flexible schedule which allows employees to learn whenever is convenience

for them. They also can take part of training at their own space at home

B. Disadvantages

There are many disadvantages of classroom lectures and seminars are time,

money and one time event. By the year 1990s, IBM had reportedly spent $1 billion

dollars for training. That is a huge amount of money for any organization to invest.

Small businees seem hardly to afford for taking these methods. In additional, IBM


have thousands of employees needed to be train.Let makes a simple calculation, one

person takes five days off for joining training lecture, and then we sum up all the

days- off of employees, the number coming out will be incredible. Last but not least,

time is also great issue. It takes long time to complete training thousands of

employees from difference location. And the turning out results may not insufficient

in some places.

In reverse, there is still difference opinon about benefits of e-training. There is no

doubt that e-learning brings many advantages to organization, but it does have some

inherent drawbacks. Cone and Robinson remarked ““Technology alone can’t produce

outstanding performance. The same is true of technology used in the training and

development profession”. (Cone and Robinson 2001, p. 32). E-training does need

employee’s commitment to take learning seriously in order to success. However, one

of the main reasons makes e-training less effective because people tend to behave

irresponsibility in e-program training because of lack of interaction between

employees and instructors. Employees may feel discouraged whenever they need the

immediate feedbacks. (Cone and Robinson 2001, p. 32)

IV. Recommendations

IBM is very succes by using e-training as mass strategy for all of its employees

around the world. E-learning brings both financial and economic benefit to the

company. This fact has nothing discuss. However, I think e-learning does not suitable

for everybody because it requires self-discipline. Beside that, people tend to learn

different way. Many employees may learn best in classroom where they can socialize

with peers, rather than seat in front of the screen by themselves. Therefore, I believe

that IBM should conduct multiple training programs which suitable for each group of

employees’ interest, that would make the contain inputs easily trasnfer to employees.

And it obviously increases the effectiveness of training at the end. (Jack Zenger and

Curt Uehlein 2001, p55)

V. Conclusion

I think training is critical part for any organizations that want to develelop. The

fundamental of training is to gain employees knowledge and skill in order to increase

their performance and prepare resources for future which help organization to achieve


its goals. HR department in each organization has duty to conduct and design

methods of training that suitable with type, size and budget of that organization in

order to enhance the effectiveness of trainign programs. IBM is very successful in its

training methods because it willing to take risks. Based on reality situation of the

company, IBM came up with e-training solution which suitable with the company

situation and it currently not only provides many benefits for IBM, and other

organizations.


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2. “Training and Development”.2010.Answer.com.Dec 10, 2010.

<http://www.answers.com/topic/training-and-development-1>

3. Terrence Donahue. “Defining the Role and Purpose of Training in Your Organization”.

Training Flash. August 31, 2007, pp1.

4. “Introduction to Human Resource Management”.2010. IBS Center for Management Research.

Dec 10, 2010.< http://www.icmrindia.org/courseware/Intro%20to%20Hrm/hrm-DS11.htm>

5. “Types of Training”. 2010. Answer.com.Dec 10, 2010.

< http://wiki.answers.com/Q/Types_of_training>

6. Danziger, J and Dunkle, D. 2005. Methods of Training in the Workplace. Center for Research

on Information Technology and Orgainzations, School of Social Sciences, University of

California. Dec 10, 2010. <http://www.crito.uci.edu/papers/2005/DanzigerDunkle.pdf>

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<http://www.hsbc.com.cn/1/2/careers/careers/careers-with-hsbc/employee-training-

development>

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<http://www.mbaknol.com/management-case-studies/case-study-of-ibm-employee-training-

through-e-learning/>

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Development” pp 32-41.

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54-60.

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Journal. August 15, 1997.

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http://www.hsbc.com.cn/1/2/careers/careers/careers-with-hsbc/employee-training-development

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15. Solomon, Charlene Marmer. "Continual Learning: Racing Just to Keep Up." Workforce.

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