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UNIT III
TRAINING AND EXECUTIVE DEVELOPMENT
Types of training methods purpose benefits resistance. Executive development programmes – Common practices - Benefits – Self development – Knowledge management. Training is basically a systematic procedure for transferring technical know-how to the employees so as to increase their knowledge and skills for doing particular jobs. According to “Edwin B. Flippo: “Training is the act of increasing knowledge and skill of an employee for doing a particular job.” 3.1 Purpose of Training: Improving employee performance- Updating employee skills Avoiding managerial obsolescence Retaining and motivating employees Creating an efficient and effective organization It helps organization to absorb changes taking place in the environment and reduce resistance to change. Training increases the productivity and level of performance of employees. It aims to improve the quality of task. To train employees in a particular culture of the company. 3.1.1 TYPES OF TRAINING: On the job training : It refers to new or inexperienced employees learning through observing peers or managers performing the job and trying to imitate their behavior. Off the job training : Trainee is separated from the job environment Take place at training agency or local college, training centres Study materials Fully concentrate on learning rather than performing Freedom of expression Methods of on the Job Training
- COACHING: It is one to one interaction Considered as corrective measure for inadequate performance. Helps in identifying weaknesses and focuses on areas which needs improvement.
- MENTORING: Mentoring focus on attitude development.
Conducted for management-level employees Mentoring is done by someone inside the company It is one-to-one interaction It helps in identifying weaknesses and focus on the area that needs improvement
- JOB ROTATION: It is an approach to management development where an individual is moved through a schedule of designed to give him or her a breadth of exposure to the entire operation. Job rotation is also practiced to allow qualified employees to gain more insights into the processes of a company, and to reduce boredom and increase job satisfaction & skill enhancement through job variation.
- JOB INSTRUCTION TECHNIQUE Advantages of “On-the – job” Methods: Generally more cost effective Less disruptive to the business - i.e. employees are not away from work Training with equipment they are familiar with and people they know can help them Gain direct experience to a standard approved by the employer On the job training is also productive, as the employee is still working as they are learning Types of Off the Job methods:
- Vestibule Training: Actual work conditions are simulated Materials, files and equipments are used Duration ranges from few days to a few weeks Theory can be related to practice here
- Management Games: To improve decision making and analytical skills. To develop awareness of the need to make decisions lacking complete information. To develop an understanding of the interrelationships To develop the ability to function cooperatively and effectively in a small group situation. Types of management Games: Executive Games are general management games and cover all functional areas {like planning, decision making, etc} of business and their interactions and dynamics. Executive games are designed to train general executives. Functional Games , on the other hand, focus on middle management decisions and emphasize particular functional areas {like Marketing or HR} of the firm.
Advantages of “Off-the – job” Methods: Learn from specialists in that area of work who can provide more in-depth study Can more easily deal with groups of workers at the same time Employees respond better when taken away from pressures of working environment Workers may be able to obtain qualifications or certificates Disadvantages of “Off-the – job” Methods: The trainer should have specialised skills and knowledge to train The trainer may not be given much time to spend with the employee to teach them properly The trainer may posses bad habits and pass these on to the trainee 3.1. 2 THE BENEFITS OF TRAINING Increases workers’ productivity Increases workers’ job satisfaction Keep workers’ skills and knowledge up-to-date Helps to motivate workers 3.1. 3 Resistance Meaning: Resistance is a key obstacle facing trainer and instructional designers throughout the corporate world. Resistance is a term used by many trainers to describe the unwillingness of employee to embrace a particular idea, concept, curriculum, technology or coursework. 3.1. 4 Steps to overcome Resistance to Change : Although change is inevitable it is a common experience that employees resist change whether in the context of their pattern of life or in the context of their situation in the organization. The best eg. Is resistance of employees to computerization? Change of and type requires readjustment. Man always fears the unknown and a change represents the unknown. Management is said to be an agent of change and has to introduce change successfully. Management has to take the following steps to implement change successfully. Participation of Employees: Before introducing any change the employees should be consulted and the purpose of change should be made known to them. Sufficient time should be given for discussing the pros and cons to the employees. Planning for Change: The change should be planned by the Management. Employees should get an opportunity for planning and installing the change. This will help the group affected to accept and understand the need for change. Protecting Employees Interest: Management should ensure that employees are protected from economic loss, loss in status or personal dignity. Group Dynamics: Group dynamics refers to the ever changing interactions and adjustments in the mutual perceptions and relationships among members of the groups.
Such associations are powerful instruments which facilitates or inhibit adaptation to change. The management has to positively articulate such groups. Cautious and Slow Introduction: The HR manager should cautiously and slowly introduce change. He should not suddenly and abruptly introduce change. He must aim bring about awareness of change and construct an attitude of welcoming change. Change must be introduced in sequential parts, the results must be reviewed and required adjustments have to be if required. Positive Motion: The HR Manager should use the policy of positive motivation to counteract negative resistance. Proper training and technical knowledge should be imparted to the employees. The leadership style would be supportive and human oriented. Sharing the Benefits of Change: Any change whether technical, social or economic will least resisted by the employees if the management permits the employees to share the benefits which will arise out of change. Training and Development: Based on the change the job should be redesigned. Management should train the employees before hand and prepare the employees to invite change. Normally trained and developed employees will not resist change. They would feel empowered with their enriched skills and knowledge. Career Planning and Development: The HR Manager should plan careers of employees, move them to higher levels and develop them. Organisation Development: HR Manager should also look into the psychological and behavioural areas of the employee with a view to achieve organizational effectiveness. Employees with enriched behaviour welcome change. Improving Effectiveness of Training: Specific Training Objectives Motivation to Trainees Use of Previous Training Suitable Organizational Condition Involvement of Trainees Feedback Careful Selection of Employees for Training.
It is an ongoing and never ending exercise .It should encompass the entire professional career of executives. Executive development is a long term process as managerial skills can not be developed overnight.
2. A knowledge updating activity:- The imperative need for management development should be appreciated as there always exists a gap between actual and potential performance. This, therefore, provides scope for continuous improvement in all functional areas. Executive development programs always attempt to bridge this gap enriching the functional capacity of executives , continuously updating their knowledge and skill. The gap between potential and actual capacity is always high for executives across the world as knowledge and skill can never get plateaued. 3. A vehicle for attitude change:- Human behavior is dynamic. Its complexity can only be appreciated once executive development programs are attempted to understand the behavioural and attitudinal aspects through simulating sessions. Better interpersonal skills is an important prerequisite for managerial success , which can be assured through such properly designed Executive development programme. 4. A stimulant to higher competence :- Unless executives are stimulated to the intricacies of managerial stress and strain through different executive development programmes ,their full potential cannot be exerted for the benefit of the organization. Executive development programmes can be designed considering such issues like employee’s motivation , habits, age-mix , pattern of conflict and chaos ,and this can enable elevation of managerial functions of the executives during the post training face. 5. A deficiency improver:- Executive development programmes are catered to the individual requirements to improve the functional deficiencies of the individual executives ,thus enabling the organization to derive immediate benefits from such programmes. 6. A self-development process:- Executive development facilitates self-development of executives, as they learn many things through action learning methods ,sharing the experiences of each other in a simulated classroom atmosphere. Key elements that are essential in having an effective executive development framework in a business:- Accountability Direction Openness
3.2.3 Process of EDP :- The process of executive development is as follows:-
1. Analysis of development needs :- First of all the present and future development needs of the organization are ascertained. It is necessary to determine how many and what type of executives are required to meet the present and future needs of the enterprise. 2. Appraisal of the present managerial talent :- A qualitative assessment of the existing executives is made to determine the type of executive talent available within the organization. 3. Inventory of management Manpower :- An inventory of qualified personnel should be prepared and a selection for the various development programmes should be made. Such inventory will provide all necessary personnel data regarding the individuals qualified for development. 4. Planning individual development programmes :- Each one of us has a unique set of physical, intellectual and emotional characteristics. Therefore, development plan should be tailor-made for each individual. 5. Establishing training and development programme :- The HR department prepares comprehensive and well conceived programmes. 6. Evaluating developing programs : - Considerable money, time and efforts are spent on executive development programmes. It is therefore natural to find out to what extent the programme’s objective has been achieved. 3.2.4 The content of an EDP includes areas such as :- 1. Strategic Management :- Components, logical process and contents of strategic management, i.e.analysis, formulation, implementation and control; the integrative nature of strategy; the impact of increasing environmental turbulence; e-business and application of real-time strategy; driving strategic change. 2. Strategic Marketing :- Marketing trends in the new economy; the contribution of marketing to the strategic management process; online marketing strategies; measuring marketing success and efficiency. 3. Financial strategies :- Financial management and value creation; under-standing financial statements; driving financial performance; making value-creating investment decisions; the drivers of cost of capital. 4. Economies – A Global Perspective :-
On The Job Techniques:
1. Coaching: In this method, the superior guides and instructs the trainee as a coach. The coach or counselor sets mutually agreed upon goals, suggests how to achieve these goals, periodically reviews the trainee’s progress and suggests changed required in behavior and performance. Coaching method offer several advantages: (i) It is learning by doing. (ii) Every executive can coach his subordinate even if no executive development programme exists.(iii) Periodic feedback and evaluation re a part of coaching. (iv) It is very useful for orientation of new executives and foe developing operative skills. (v) It involves close interactions between the trainee and his boss. Coaching method , however , suffers from certain disadvantages: (i) It tends to perpetuate current managerial styles and practices in the organization. (ii) It requires that the superior is good teacher and guide. (iii) The training atmosphere is not free from the worries of daily routine. (iv) The trainee may not get sufficient time to make mistake and learn from experience. Coaching will work well if the coach provides a good model with whom the trainee can identify ; if the both can be open with each other , if the coach accepts his responsibility fully ,and if he provides the trainee recognition of his improvement and suitable rewards. 2. Under Study: An understudy is a person selected and being trained as the heir apparent to assume at the future time the full duties and responsibilities of the position presently held by his superior. In this way, a fully trained person becomes available to replace a manager during his long absence or illness, on his retirement, transfer, promotion or death. The superior routes much of the
department work through juniors ,discusses problems with him and allows him to participate in the decision-making process as often as possible. Understudy method provides many advantages: (i) The trainee receives continuous guidance from the senior and gets the opportunity to see the total job. (ii) It is practical and time saving due to learning by doing. (iii) The trainee takes interest and shares the superior’s workload. (iv) The junior and the senior come closer to each other. (v) It ensures continuity of management when superior leaves his position. Understudy method, however, suffers some disadvantages: (i) It perpetuates the existing managerial practices. (ii) As one employee is identified in advance as the next occupant of a higher level managerial position , the motivation of other employees in the unit may be affected. (iii) The subordinate staff may ignore the understudy and treat him as an intruder without clear authority and responsibility. (iv) Under an overbearing senior , the understudy may lose his freedom of thought and action. The success of this method depends upon the teaching skills and cooperation of the superior with whom the understudy is attached.
3. Position Rotation: It involves movement or transfer of executives from one position or job to another on some planned basic. These persons are moved from one managerial position to another according to the rotation schedule..Position rotation is also called job rotation. The aim is to broaden knowledge, skills and outlook of executives. Job rotation or position is often designed for junior executives. It may continue for a period ranging from six months to two years. Job rotation method offer following advantages: (i) It helps to reduce monotony and boredom by providing variety of work. (ii) It facilitates interdepartmental cooperation and coordination.(iii)It infuses new concept and ideas in to elder personnel. (iv) Executives get a chance to move up to higher position by developing them into generalists. (v) Best utilization can be made of each executive’s skills. Job rotation method suffers from following disadvantages : (i) Job rotation may cause disturbance in established operations. (ii) The trainee executive may find it difficult to adjust himself to frequent moves. He may feel insecure in the absence of stable interpersonal relationship. (iii) The new incumbent may introduce ill-conceived and hasty innovations causing a loss to the organization. (iv) Job rotation may demotivate intelligent and aggressive trainees to seek specific responsibility in their chosen specialization. (v) It may cause jealousy and friction due to the game of musical chair’.Job relation can cause class destinations and misunderstanding, executive who are not moved may develop defensive reactions. (vi)It may upset family and home life when transfers are made to different geographical areas. 4. Project Assignments: Under this method a number of trainee executives are put together to work on a project directly related to their functional area. The group called project team or task force will study the problem and find appropriate solution. For instance, accounts officers may be assigned the tasks of designing and developing an effective budgetary control system. By working on this project, the trainees learn the work procedures and techniques of budgeting. They also come to learn the
The lecture method , however suffers form the following limitations: (i) Lecture is a one - way communication .There is no participation and feedback from the audience (ii) The audience loses attention quickly as they are passive listeners. The focus is on accumulation and memorization rather than on application of knowledge. (iii) It requires a great deal of preparation and speaking skills for which executives may lake time. (iv) The presentation of material has to be geared to a common level of knowledge. (v) It becomes unpalatable to the audience when too much information is packed in the lecture. Lecture method can be made effective in the following ways:- (a) A lecture should be well planned as to its purpose and contents. (b) The lecturer should be competent and a good speaker. (c) He should keep in mind the listener’s needs and interests. (d) The lecture should not be more than one hour. (e) The lecture should be made interesting through leading questions, guided discussions and audio-visual aids.
2. Case Studies: Under this method, a real or hypothetical business problem or situation demanding solution is presented in writing to the trainees. They are required to identify and analyze the problem, suggest and evaluate alternatives courses of action and choose the most appropriate solution. Advantages of this method: (i) It promotes analytical thinking and problem solving skills. (ii) It encourages open-mindedness and provides a means of integrating interdisciplinary knowledge. (iii) The trainees become aware of managerial concept and process and their application to specific situations.(iv) Detailed descriptions of real life situations helps to create trainees interest. Case study method suffers from the following advantages: (i) A case may degenerate into a dreary history undermining analytical reasoning. (ii) It may suppress the critical faculties of mediocre trainees. (iii) The case may be used indiscriminately as permanent precedents. (iv) It is time saving and expensive to prepare good case studies. (v) A real life case may not be useful in different cultural situations. 3. Group Discussion: It is a variant of lecture method under it – paper Is prepared and presented by one or more trainees on the selected topic. This is followed by a critical discussion. The chair man of discussion or seminar summarise the contents of the papers and discussion which follows. Often the material to be discussed is distributed in advance. Seminars and conferences enable executive to learn from the experience of each other and have become quite popular. 4. Role Playing : In this method the trainees act out a given role as they would in a stage play. Two or more trainees are assigned part to play before the rest of the class. Thus, it is a method of human interaction which involves realistic behavior in a imaginary or hypothetical situation. Role playing primarily involves employer employee relationships, hiring, firing, discussing a
grievance procedure, conducting a post appraisal interview or disciplining a subordinate or a sales man making a presentation to a customer.
5. Management Games: Management or business games are designed to be representative of real life situation. These are classroom simulation exercise in which teams of individual compete one another or against an environment in order to achieve a given objective. In this exercise, the participants play a dynamic role , and enrich their skills through involvement and simulated exercise. Management games can be of interactive or non interacting types. In the interacting types of games, the decisions of one team influence the performance of other teams. In the non interacting games each team is independent and its performance entirely depends upon its on competence. Advantage of the method (i) It has to analysis and collect the relevant data from a mass of information and also helps to decide with incomplete data. (ii) It is useful in developing problem solving skills (iii) It helps in developing leadership skills and in fostering team work. Disadvantages:- (i) It is very difficult and expensive to develop and implement goods game. (ii) The games are artificial because in real life executive are rewarded for creating new alternatives rather than for choosing from a given list of alternatives. (iii) The trainees who are successful in these games may not be successful of the job. 6. Sensitivity training: This method is also called T-group training and laboratory training. He purpose is to increase self awareness. Develop inter personal competence and sharpen team work skills. The trainees are brought together in a free and open environment where in participants discuss themselves. The discussion is lightly directed by a behavioral expert who creates the opportunities to express their ideas, beliefs and attitudes. The following steps may be taken to make sensitivity more effective: (a) The trainer must be able to translate emotional situations into constructive consequences. (ii) The participant with motional suitability and high tolerance for anxiety should be selected.(iii) The programme should be strictly voluntary. (iv) The participant should be told in advance what they are going to be experience. (v) A mechanism for transferring the learning to the work situation should be created. 3.4 Benefits of Executive Development Programme :-
Networking takes place between executives.
More cohesiveness between team members. Positive effect on the bottom line. More patience and better understanding of another department’s limitations. Skill and knowledge enhancement is substantial. Executives develop the right attitude.
- Open: The open quadrant refers to state about an individual such as behaviour feelings and motives that he knows and willing to share with others. Sometimes, in a relationship, the individual is straight forward, open and sharing.
- The Blind Self: In this other people know what is happening to him but he is not aware of it. Often such blind behaviour is copied by the individual from significant people unconsciously right since the childhood.
- The Hidden Self: The hidden self is within the vision of the individual but he does not want to share with others. People learn to hide many feelings and ideas right from the childhood.
- The unknown Self: the unknown self is mysterious. People often experience these parts of life in dreams or in deep rooted fears or compulsion. These acts, feelings and motives remain vague and unclear to people until they allow them to surface. Benefits of Self-Development: Inculcates positive Thinking Helps to Create Harmonious Relationships Cultivates Trust Helps in Training and development. 3.6 Knowledge Management Definition: According to Holm – Knowledge Management is getting the right information to the right people at the right time, helping people create knowledge and sharing and acting on information. Features of Knowledge management: Knowledge management is a continuous process. Knowledge management is not restricted to a particular level. Knowledge involves capturing, transferring and storing of information. It involves collaborative efforts on the part of experts, and work teams. Knowledge can also be generated when social interaction takes place KM is a basic requirement for organizational effectiveness. Objectives of Knowledge management: To create and use knowledge in the best possible manner. Transforming individual knowledge into the structural capital of the organization Building the knowledge capital Aligning business strategies, core competencies, knowledge capital and organizational process. Elements of Knowledge Management:
- Knowledge Creation
- Knowledge Sharing
- Knowledge Utilization
Approaches of Knowledge Management: There are 4 main approaches to Knowledge Management- Codification Approach Personalization Approach Resource Based Approach Knowledge Creation Approach
- The Codification approach is a ‘people-to-document’ approach. Knowledge is explicit. It is made independent of the person from whom is is extracted & stored in databases or found in presentations, reports, policy documents, manuals, libraries etc. It is moved around the organization through Intranet or other traditional means like meetings, courses, publications, videos, tapes, workshops, ‘master classes’ etc. Ernst & Young is a good example of an organization using the codification approach effectively as it deals with recurring problems via recorded solutions to similar issues.
- Personalization approach is a ‘person-to-person’ approach. Knowledge is tacit. It involves the person who developed it directly via face-to-face communication with an individual or team, brainstorming, workshops or other one-to-one sessions. McKinsey, Bains & other strategic consulting firms use the personalization approach which requires them to channelize individual expertise for creative & analytical advice. It could involve using senior level officers like directors, COO s or other experts who can be approached by email/phone/personally. Either the codification or the personalization approach is used predominantly while the other could support the first. Using both is not considered a successful approach & has high chances of failing.
- The Resource Based approach considers knowledge as a ‘resource’ which is created, passed on & used technically, socially, and economically. Technically, knowledge management involves centralizing the knowledge prevalent across an organization and codifying it aptly for easy use. Socially, knowledge management involves collecting knowledge so that no individual or group has exclusive rights over it. Economically, knowledge management is a means to create & exploit knowledge to attain competitive advantage.
- Knowledge creation approach involves construction of knowledge by blending together its various forms to produce innovative outcomes. Various ways of blending knowledge are by socialization (tacit to tacit), externalization (tacit to explicit), internalization (explicit to tacit) and combination (explicit to explicit).
As Knowledge Management has gained importance in giving a competitive edge to an organization over others, it has been made part of various HR processes including performance management. At Ernst & Young, 1 of the 5 criteria for performance review includes an employee’s utilization & contribution to knowledge. At Bain, employees are also evaluated on the basis if how much direct help they have provided to colleagues. During 360 degree feedback also one area of assessment involves the extent to which an individual shares knowledge.
7. Organizational & Individual Learning The HR department should work in conjunction with the IT department to make sure that simple systems are developed for capturing and distributing knowledge. This can be enhanced by organizing workshops, conferences, seminars etc because as an individual learns & importantly shares, a whole organization learns. Knowledge Management Issues: Keeping up with the pace of change of knowledge while correctly identifying what needs to be stored for use in the organization Business strategy must drive knowledge management strategy as it is the application of knowledge to an organization’s strategic objectives that creates competitive advantage. If knowledge does not add value, it should not be ‘managed’ Some organizations spend huge amounts of money to set up an IT infrastructure for storing knowledge & its easy use by employees. While this may be more useful in an organization having a codification approach to knowledge management; it should be well understood that there is a limit to which tacit knowledge can be coded and it is always a person-to-person approach that works best. IT can support the interactive personal approach but not replace it. Knowledge is Power. An open culture encourages people to share their views, ideas & opinions while lack of trust inhibits sharing knowledge. Hence it is important to encourage interactions between employees through which knowledge can combine and flow in different ways. Again leading to dependence on IT only next to personal interactions. Knowledge Management also deals with appropriate motivation & management of Knowledge Workers - individuals with high levels of education & specialist skills to identify & solve problems. Training Need Assessment (TNA) Meaning: The purpose of a training needs assessment is to identify performance requirements and the knowledge, skills, and abilities needed by an agency's workforce to achieve the requirements. An effective training needs assessment will help direct resources to areas of greatest demand. The assessment should address resources needed to fulfill organizational mission, improve
productivity, and provide quality products and services. A needs assessment is the process of identifying the "gap" between performance required and current performance. When a difference exists, it explores the causes and reasons for the gap and methods for closing or eliminating the gap. A complete needs assessment also considers the consequences for ignoring the gaps. There are three levels of a training needs assessment: Organizational assessment evaluates the level of organizational performance. An assessment of this type will determine what skills, knowledge, and abilities an agency needs. It determines what is required to alleviate the problems and weaknesses of the agency as well as to enhance strengths and competencies, especially for Mission Critical Occupation's (MCO). Organizational assessment takes into consideration various additional factors, including changing demographics, political trends, technology, and the economy. Occupational assessment examines the skills, knowledge, and abilities required for affected occupational groups. Occupational assessment identifies how and which occupational discrepancies or gaps exist, potentially introduced by the new direction of an agency. It also examines new ways to do work that can eliminate the discrepancies or gaps. Individual assessment analyzes how well an individual employee is doing a job and determines the individual's capacity to do new or different work. Individual assessment provides information on which employees need training and what kind. The Training Needs Assessment Process:
