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Training if effectively managed achieves aims and
objectives of an organization.
Training is always job orientated for the development
of the general culture of the company.
Training is a process to improve aptitude skills and
abilities of the employees to perform specific jobs.
Due to rapid growth in technology fields there is a
great need for training for updating skills of employees.
To respond effectively to competition from rival
business organization in house training is given to keep
abreast with latest development in their field.

Present day role of training.
Now a days training is a crucial element , a sound basis for modern

day management at the micro level.

It has an extensive role in
a) enhancing productivity.
b) improving organizational functions.

At macro level it serves as an important agency to contribute

to the economic and social progress of the country thus
creating a need for large scale organized efforts to develop
technical and enterprising skills in youth to make them
productive units of society.

What is the need for Training of Personnel?
Continuous management training is required to build up a strong

effective , motivated and dedicated managerial cadre.

In PEs training must shape the managers to understand the
requirement of the employers in terms of organization and personal
It is essential for gaining competitive edge.
For imparting diverse skills and performance management abilities
to managers for effectiveness of business activities.
For enhancement of emotional and intelligent quotient in managers.




T : - Talent and

N:- Novelties

R:- Reinforcement
A:- Awareness
I:- Interest

I ;- Intensity

A growing organization must be

in tune with the changing
needs of the society.

N:- Nurturing
G:- Grip
The gap between performance of
the organization and the
changing needs of the society
can be reduced through
proper training of the
employees by increasing their
knowledge, skill, ability and


Definitions of training
Training is defined to be a organized activity involving systematic procedures

for transferring technical know how to the employees for increasing the
knowledge and skills of the people for a definite purpose.
Definition by Edwin B Flippo. The purpose of training is to achieve a change
in the behavior of those trained to enable them to do their jobs better. It is
equally necessary for the new as well as the old employees. Training is a
continuous process to bring a positive change in
1) knowledge
2) Skills
3) Attitude Of the workers

John P. Jkenny and others (1979) defined

training to help out an individual to learn how

to carry out his present job satisfactorily.
Edger H. Schein defined management

development as a how an organization brings

a change in an individual in a direction which
organization regards to be in his own and
organizations best interests. Most importantly
various training programs try to influence the
managerial attitudes.

Lately the scope and application of training
has widened to include positive behavioral
changes, developing life skills leading to
personal growth that helps to cope with day to
day problems of living and manage
interpersonal relations, and interpersonal

Defining training objectives is a pre requisite of any
training program.
They may vary according to the requirements of a
particular situation
Objectives of any training program should indicate that

at the end of training whatever knowledge , skills and

attitudes that have been identified as necessary for
effective work performance should be achieved
In complex subject like management it is not easy to
define training objectives in terms of performance
measurable terms of specific objectives.


Training objectives determine the details of design
and provision which must include the people who
design and provide training and the methods and
locations that might be used in practice.
Systematic methods are evolved for increasing the
new employees knowledge and developing his skills
and also giving core- training of its existing
Objectives are statement of intent written in clear
,specific and precise terms which specify what
learners will be able to do at the end of each stage of
learning process.
Objectives are essential for validating the training.

Three elements of training objectives
1) Outcomes: This is the observable behavior

required at the end of training.

2) Conditions : These are circumstances in
which the outcomes should take place
3) Standards: The expected level of attainment
in terms of quality, accuracy , quantity or
whatever is relevant to the job.
p.s. Objectives should always be written to avoid
mental manipulation.

Systematic Assessment of Training (SAT)
It defines training objectives as one system
and the assessment of learning achievement
and training effectiveness as another being
totally interdependent.

Setting out the program objectives
This includes the following modules:
Understanding Program Objectives.
Program objectives are broad statement of intent, action
and outcomes which are the end result of the training.
Learning Objectives express learning expected from a
specific training activity, event or module.
Program objectives are the aggregate of learning outcomes
There are three broad areas of learning associated with
program objectives which reflects the changes that can come
about in an individual as a result of training. They are :Contd.

APPROACHES Cognitive Learning : Focusing on
acquisition of information and knowledge, including
concepts ,theories and principles etc..
Behavioral Learning : Developing competencies
required for the actual performance of the job.
Affective Learning: Also aimed at enhancing job
performance by fostering appropriate attitudes and
values. By helping individuals in better management of
of feelings, emotions and reactions to situations and
These three area are interrelated resulting in all round
development of an individual.

Need for setting Program Objectives.
The need for setting program objectives are listed as
a) Provide Direction to the Program
Objectives define the direction of the program and
indicate areas of emphasis.
b) Serve as a basis of Evaluation.
Objectives facilitates the process of setting standards
of performance for the training team.

c) A Tool for Meeting Participants Training

Objectives assist the participants in
establishing their personal learning objectives.
d) Define Limits for the Program
Objectives also set out parameters for the
programs ,the can do and cannot dos.

Establishing program objectives-Consideration and

Program objectives are established on the training needs.

which needs to be identified. using appropriate
methodology sound procedures and principles .Some of
the points to keep in mind:
Program Objectives are Set Out from the Learners
The primary aim is to inform the participants of the
learning they should expect to receive from the

Sample Program Objectives
Training Program: Leadership and its Development
At the end of the training program the participants will
be able to :
Discuss and analyze the concept of and dynamics of
leadership and examine its application to the situation in
their respective organizations.
Illustrate various theories and models of leadership and
appraise their relevance and validity to their job.
Become aware of their leadership style and recognize
the need for bringing about changes in accordance with
the requirements of the job and the organization.

Training and education As Approaches to Learning

The purpose of education is to teach theoretical

concepts and develop a sense of reasoning and
Training and development must contain an element
of education.
For this purpose organizations depute and encourage
employees to do courses on a part time basis in
Institute of Public Enterprise, Business schools etc.
Education is more important for managers and
executives than for lower cadre workers.

Defining Training and
Flippo defined training as the act of increasing the knowledge and
skills of an employee for doing a particular job and prepare himself
for higher level job.
Training imparts the ability to detect and correct error.
It provides skills and abilities that may be called on in the future to
satisfy the organizations human resource needs.
It may be carried out on the job off site or on site.
It may be given in a simulated environment that is similar to work
environment in important respects.
Trainees are expected to acquire abilities and knowledge that will
enable them to do their job more effectively.

Some Key Attributes of Training
and Education


Education is mainly directed

Though training is
concerned with the future of
an individual , his past and
present provide a crucial
frame of reference.
The scope of training is
limited, determined by training
objectives. It is specific and
highly structured. It has
relatively short term
perspective of the future of
the individual.

towards the future of an

individual and any reference
to his past and present state
is incidental.
Education is not targeted
towards specific behavior. So
it lacks the specificity of
training. Education has a long
term perspective of an
individuals life.

Some Key Attributes of Training
and Education


Transfer of learning can be

Difficult to monitor how the

monitored and assessed. The

organization and even the
training agencies can exercise
greater control on the process.

Training has less emphasis

on ideology and social values
,societal forces play a far less
significant role than they do in

learning acquired by the

individual is used by the
individual. The educational
institute has virtually no control
over the situation and the
circumstances of the
Education is firmly rooted in
the culture of the society. Its
key concern is the inculcation
of socially accepted values in
an individual.

Some Key Attributes of Training
and Education


Social institutions like state , family

and the community play an

important role in the education of an
In training the group comes

together for a specific

purpose and disperses after
the program objectives are
assumed to have been

In education, the group is more

enduring and there is sustained

interaction over a long period of


Training vs Development
Training is often referred to as teaching specific skills and behavior.
Development in contrast is more general and more oriented to individual

needs as well as organizational needs often aimed towards management

Development is to provide knowledge and understanding to people to carry
out functions such as problem solving , decision making related to people.
Training is meant for operatives and development is meant for managers.
Training improves specific skill whereas development aims in improving
total personality of an individual.
Training is a one shot deal whereas development is a continuous process.

Training is the result of some outside motivation whereas

development is the result of inside motivation

Training seeks to meet the current requirement of the job, it is a
reaction process whereas development is a proactive process.
Non managers
Technical mechanical Theoretical
conceptual ideas
Specific job related
General knowledge
Short term
long term

Triggers of Training
Training programs is a stimulating process and should take
off with enthusiastic participation.
Some example of triggering are:
1) CEOs initiative with a ceremony for introduction of new technology.
2) HRD document with mission policy and action plan
3) An incentive for fast learners
4) A letter from the CEO on the subject to employees
5) Publicity for skilled persons
6) Shram shakti awards
7) Unveiling career plan for the newly trained people or new skill base.
8) Threat of lateral recruitment instead of internal promotions for higher


Benefits of training
Training offers innumerable benefits both to employees and employers.
Tips for Trainees on how to benefit from business seminars.
Plan your schedule ahead of time
Make sure what your company would like you to learn from the seminar.
Learn about the proper attire for the seminae
Network at the seminar. Bring business cards
Meet people before each session.and break the ice by making useful
conversation. Introduce yourself to the presenter.
Bring back information to the company by either making a oral
presentation or written report

Benefits of training to a company
The major benefits are:

1) Increased productivity
2) Improved morale
3) Reduced supervision
4) Reduced accidents
5) Increase organizational stability

Benefits of Training to the employee
Training makes employee more useful hence he will find
employment more easily.
Training makes employee s more efficient and effective.
Training helps them to secure promotions easily and realize their
career goals.
Training helps an employee to move from one company to the other
easily. He can be more mobile and pursue career goals easily.
Employees can avoid mistakes ,accidents on the job thus handle job
with more confidence, be more satisfied and would have high morale.
It helps employees to cope with organizational , social and
technological change. It is an invaluable investment in human
resource of an organization.

Benefits of Training to the Business
Wastage is eliminated to a large extent as workers
work more effectively.
There are fewer accidents. As trained workers have
improved knowledge of use and handling of
Workers turn out better quality goods
Training makes workers more loyal to the
organization as they will have more growth

Current Training and Development Practices, National
World bank has given a warning signal that by the turn of this
century India will have nearly three fourth of worlds illiterate
population. We have to convert this human resource as an asset
through formal, informal and non formal education involving training
and retraining.
On analysis of the present day training programs in the country are
quite inadequate. Public sectors have training programs with
employee development approach whereas private sectors have only
development of the organization in mind.
Though most of the Public Sectors have taken up HRD in a big way
but so far private sectors have been having half hearted efforts so
far. Recent globalization and new economic policies have brought
changes , they are also opening up training centres, even

The essence of training is to meet the future requirement of the
organization where as development helps the individual to handle
future responsibilities other than the concerns of the present job.
The concept of HRD is already established in successful
organizations in the form of HR planning, recruitment and selection,
training and development personnel and administrative policies,
planning and implementation , career counseling, industrial relation
etc. These are managed by the professionals in HR from a holistic
viewpoint, throwing up creative solutions which were previously not
thought of.
Todays tragic truth is the rapid rate of obsolescence of skills. Thus
retraining and development of millions of workers for alternative
careers is a crucial area. Training is essential both to workers and
supervisors and managers to improve their skills and performance.

The shift from planned economy to market economy has raised
consumerism and up gradation of technology.
Introduction to computers needed retraining and redeployment of
The New Industrial policy of 1991 brought about many structural
changes. The Indian economy has switched from domestic to
global market.
To have competitive edge, Indian industries had to improve quality
and meet the national challenge of training and deployment.
All public enterprise need to have well trained and experienced
In a rapidly changing society in order to maintain a viable and
knowledgeable work force, organization must commit resources to


HRD in Public Sectors

Public sectors contribute most to the national economy so they need to
improve their efficiency.
The reward and promotional system based on time bound scale rather
than merit basis defeats the basic concept of HRD process in these
Though there are a number of central and state level institutions
conducting HRD programs for civil administrative and public sector
organizations but much more is yet to be done.
HRD can be hall mark of public sector automatically improving the
quality of work and productivity if the objectives are clearly defined and
goals are achieved.
The economic consideration will have to be given more weightage to
dilute politicians dominations .

Role of HRD in Economic Development
Competencies and behavior are major factors in the
economic growth of the country
Structural changes in Indian economy is dominated by its
population and their contribution.
As population growth , human resource development and
economic development are interrelated by implementing
HRD policies a change in GNP can be noticed.
Only an educated and developed population can become
best human capital and help in National Economic growth.

HRD in Private Enterprises
The private sector is on the growth path in India and has to move from
old economy to new economy where owners and employees are
subordinated by the enterprise.
They are going for employee stock ownership scheme ,greater
representation of the employees on the board .
In order to meet the modern day challenges big business houses have
set up their own business schools and management academys like Tata
Management training centre, Reliance Management Academy etc.
Though there is technology boom in India there is a gap in setting up
technical management institutes.
The private sector cannot make any meaningful beginning on the
management development unless it starts developing existing personnel.

HRD in Banking
Banks are key sectors of national economy and are important
public sector enterprise.
Being in service sector Banks realise the importance of HRD and
they do have brain storming sessions , idea banks at zonal centres
Human values are given greater importance.
They have schemes for career planning management
development process by rotation of staff, open and planned
appraisal systems.
In their HRD programs due importance is given to interpersonal
skill development and analysis of consumer behavior.
On the job class room , optimization of available staff, continued
education and vocational training are some good features of HRD


Problems in Training
Despite setting up institutes various problems in respects of
training have surfaced from time to time .
Questions of appropriate organizations model , training mix ,
faculty composition, and methodology of evaluation are some
areas of trouble.
Adequacy of training budgets, interface of training objectives
with the other functionaries in the organization are some
thorny issues.
To address such problems a concerted research is initiated
on the functioning of in house training departments in PEs to
assess their performance.

International Perspective: The Singapore Training Experience

Singapore is the best prototype of a nation that has successfully up

skilled its work force over the last 40 years.
Worlds Economic Forum has rated its labor force 1st in terms of
computer literacy and 2nd in terms of worker motivation and
availability of skilled work force.
Its education system meets the needs of a competitive economy .
Singapore is ranked 1st amongst all developing nations in terms of
number of human resource dimensions.
On education standards, comparing scores in maths and science
Singapore is ranked 1st.
On both educational and training dimensions or national human
resource development they have excellent achievements.

Factors contributing to the success of
Singaporean Skills development system.
The linkage between Skills Development and economic
The EDBs Evolving model of Technology Transfer,
Foreign Investment and Skills Development
Skills Development Fund
Long term skills Development Education Policy.

Skills Development Fund
SDF is the institution that has been touted as model for other
Employers have to contribute 1% of the gross salary of each
employee earning less than 1000 Singapore dollars /month to the
Companies can get upto 80% of its contribution back if they apply to
the SDF for grants for training and skills enhancement.
It is a way to induce companies to continuously invest in skills up
gradation and it penalizes companies which persists in using lowskilled-workers in low-value-added operations by increasing their
labor costs.

The employers who submit a Total Training Plan affecting atleast
50% of their work force would be awarded with higher grants and
subsidies from the SDF.
Grants are typically awarded to companies to use the funds for
training programs necessary to enhance the expertise of the
The objective of the training program should be consistent with
Singapores new economic strategy and direction.
Special incentives are provided to companies to train older
workers aged 40 and above, to train women to get back to
workforce, for basic education etc.
On both education and training dimensions or national human
resource development Singapores achievements are excellent.

The United States Training Scene
The Training and educational systems of Germany and Japan are
far more consistent than that of USA.
In USA company sponsored training focuses on managers and
technicians; the quality tends to vary widely.
Germany is best known for its outstanding apprenticeship program.
On the other hand while comparing USAs training scene with
Japan .it is found that Japan boasts having one of the best primary
and secondary educational systems in the world.
Once employed Japanese workers receive extensive ongoing ,
company sponsored training.
Workers in Japanese automobile plants average 90 hours of
training whereas workers in US Automobile plants average about 30
hrs of training annually.

Canadas training and education system is quite similar to US.
Primary , secondary as well as vocational education system
varies greatly in terms of quality . Companyies provide as much
as half of training that is given in US.
Compared to USA in Korea though there is a strong primary and
secondary school system as well as vocational education , but
company sponsored training programs are scarce and poor in
Thus we see that in US training and education programs can be
improved to have more effectiveness to greatly affect countrys
ability to compete globally.


Japanese Training Scene

Employers in Japan are well regarded for their significant and
long term commitment to developing skills of their workers
perhaps more than any other industrialized nation.
Employee development is the key factor in Japans economic
advantage over US and other countries.
In spite of a lengthy economic recession a decade later Japans
commitment to worker training remained unshaken and superior
to practices elsewhere.
Skill development remains at the very heart of Japanese

Japanese Training Scene,
Japanese respondents reported a slower rate of growth in training

Training investment figures are significantly lower in almost all major
respects than those from other regions as shown:





Training expenditure
per employee.





Training expenditure
as a percentage of
pay roll.





Japanese Training Scene,
Non- financial measures
In this there are significant differences between Japanese participants and

those in other countries.





Average employee
to trainer ratio





Percentage of
employees received
training in 2000 .





Japanese Training Scene,
Delivery , Evaluation and Resources
Training in Japan is evaluated and delivered differently.
All regions reported that most training was delivered in an
instructor led classroom, 10% of training used a variety of learning
technologies. The comparable percentage of classes delivered via
learning technologies in Japan was just 1%.
Japanese organizations were less likely to use evaluation methods
other than Kirkpatricks level1 ( reaction) evaluations.

The distribution of training costs, such as wages and salaries of
the training staff and tuition reimbursements, was similar to that in
other regions. Japanese expenditures on outside providers were
also in line with other regions, at just under one third of the total.

Japanese Training Scene : Innovative practices
Japanese employers use innovative training and work practices
similar to others around the globe.
The number of Japanese organizations providing :
Apprenticeship programs

Coaching programs

Training information systems

Employee involvement

Access to key business information is very similar to those in other

In other aspects of workspace learning and performance Japanese
firms led much of the world.
Japanese firms compensated employees on the basis of overall
organizational performance . They practice gain sharing, profit
sharing .
Employee stock ownership plans were twice as common in Japan.

Japanese Training Scene: Cultural due diligence
Data says that the training methods in Japan are quite different
from those in rest of the world.
The apparent direction of disparity between Japan and other
countries is surprising. Being the recognized world leader in
workplace training and development it is anticipated that most of
the measures would be higher not lower than those of other
The true nature of unique training system that prevails in Japan
depends on the some important ways that may affect direct
comparison. They are
1) Lifetime employment.
2) A holistic approach to Development.
3) The Technology Angle.


Japanese Training Scene,
Lifetime Employment
Japanese companies place great importance on the concept of
lifetime employment.
On entering work Japanese workers must evaluate their employers
carefully as they get few opportunities to work elsewhere.
Lifetime employment creates a unique context for the skill
development and learning opportunities.
Employers in Japan do not have to worry making substantial
investments in employees who might walk out before they recoup
the cost.
Japanese firms take a long term approach to developing their

Japanese Training Scene; A Holistic Approach to Development

Japanese firms provide a full development process which also

includes short training events .
Employee learning in Japan can either be planned or unplanned ,
formal or informal.
They can be further subdivided into on the job or off the job
Off-the-job formal learning is called training which is classroom
based, instructor led.
The three primary ways of employee learning in Japanese firms
Off-the-job formal learning
On-the-job informal learning
Off-the-job informal learning.


Japanese Training Scene,
A Holistic Approach to Development
Most of what US employees learn occurs informally during activities
as team and customer interactions,meetings, cross-training and shift
Employees of Japanese firms obtain much of their learning
informally, their proportion is substantially smaller than that of US
figured at 90%.
Sizable % of Japanese worker training happens as formal,
structured , on the job learning. This is missing from US.
According to 1998 Measurement Kit following is the statistics of
Japanese employment training.:
Informal 40% , Formal on- the- job learning 39% and Formal off- the
job learning 21%

Japanese Training Scene,
The Technology Angle
Japanese firms differ from others in their use of learning technologies to
deliver training.
Japanese firms engage in the use of non-electronic, self paced delivery
methods more frequently
Most distance learning in Japan occurs through the mail ( correspondence
courses) rather than online.
They rely less on learning technologies than rest of the world.
Small amount of formal off-the-job training in Japan creates fewer
opportunities to use learning technologies like IT training.
In Japan the use of

In US the use of

CD-ROM is 24%

CD-ROM is 49

E-mail is

E-mail is 34%


Company internet 8%

Company internet 24%

Strategies for Effective Human Resource
Training and Development in 21st. Century
The main focus is how to link HR with business strategies.
The corporate training must be understood in terms of paradigm
shift that is taking place in Indian Industry.
Three factors have added new dimension to the need for training
in all industries , they are
1) Liberalization 2) Imbalance in demand and supply of
professional talent
3) Growing expectation of employees regarding their
professional and personal development.
Training is an effort into immediate position while
development is an effort directed towards growth.

Classifying Employees for training
BCG matrix can be applied to human resource portfolio.
The two by two grid gives four types of employees.
1) Dead Wood: Employees in this category are incompetent, unsatisfactory
and wholly unsuitable occupants of their present positions; have low
potential for growth.
2) Work horses: These people have reached their peak of performance in
the light of definitely limited capacity.
3)Stars: These are people of high potential who are performing at the
highest quadrant of the potential.
4) Problem Children:These people have great potential and genuine
capacities but are working below that capacity or only with mixed results.
Sometimes they divert their energy to make mischief and misuse their

A Model for creating a Training and Development Strategy
i long term
Business Goals
a power plans
Change initiative

Values and beliefs in

people development



Training & Development


Individual needs
Term needs

Belief Policies


A Model for creating a Training and Development
The principle of the model is simple and there are three categories of the
business factors that our strategies should contain.
The 1st set of drivers are more or less permanent for the organization.
First will be the mission , vision and the values of the organization.
Secondly there will be set of values relating specifically to people
Thirdly there is a need to maintain and enhance the core competencies of
the organization.

A Model for creating a Training and Development
Though many organizations could not explain their strategy but would
produce various documents describing thing that they do in HRD.
The information required for making personal plan s is required to a great
extent for the training plan.
The next step in the training process is analyzing training needs,
This is done at organizational, group and individual levels.
A number of different methods and models conducting needs analysis
have evolved over time.
All these process gives the gap between demand and the supply.

A Model for creating a Training and Development Strategy
Assessment methods

Training needs may be analyzed by the following assessment

1) Observation
2) Consultation key
3) Print media
4) Study of job description / specification
5) Appointing external consultants
6) Performance appraisals
7) Special questionnaire/ surveys
8) Skill gap analysis, or
9) Interviews with supervisors /peers
10) Self assessment
The methods chosen differ with the level of need assessment, that is
whether it is at the organizational level, group level or individual level.

Issues involved with Training Needs Assessment

1) Determining felt needs Vs real needs.

2) Balancing organizational needs with the individual needs.
3) Reducing individual anxiety about being evaluated- overcoming
4) Establishing a two way communication in tradionally one way
5) Shielding top management from unpleasant data and shielding
employees from hidden concerns of top management.
6) Erroneous interpretation of surveys results.
7) Ethics for probing for personal information about attitudes and
personal goals.
8) Extra time required to collect additional data required to design


The next step is the selection of trainees which must have a strategy.
To determine the obvious target group.
All training cannot be important in one go and it is generally spread
over a time often stretching a long period on a rolling plan basis.
An important variable for success of training activity is the motivation
of the trainee to acquire skills , knowledge and abilities.
Motivation can be related to rewards, succession plan and promotion.

Benchmarking with the other organizations will be a valuable exercise and
can be done on number of fronts:
How do we compare in terms of our beliefs and philosophies?
How do we compare in terms of efficiency?
How well do we link our activities into the business priorities?
How do we compare in terms of achievement of key goals?
Some other question might cover:
Level of involvement in strategy.
Methodologies for linking business goals to learning goals
The value placed on training as a support of business change.
Beliefs and principles.


Needs Analysis process.
Line manager involvement.
Range of learning methods used.
Uses of accreditation and management education.
Roles and skills in HRD staff.
Evaluation methods and results
Organizational learning and knowledge management.
All bench marking should have clear focussed objectives so that it does not
result in masses of data that cannot lead to much action.
Where should we carry our activities?
There are two options:
Own premises.
External facilities.

Own premises
Premises cost - rent or ownership cost, utilities, services
Equipment purchases and depreciation.
Catering costs.
Travel for company delegates.
Extent of subsidy obtainable through external revenues by allowing
others to use the facility.
Facilities management cost and time.

External Facilities

Delegates day rate including all in room hire and meals.

Special equipment hire
Travel for company delegates
Travel and accommodation for training staff.
As every organizations situation will be different ,one cannot predict any
general outcome of such calculations
For large amount of standard training, economics will likely swing in
favor of dedicated site.
Standard training course is not very effective way of learning.
The HRDM needs to have a overall control of the resource to have the
right balance.
A good cost comparison brings in the necessary factors.The way to do it
is to zero- base all the training that is done.

Funding Strategies

Money is the most critical resource needed. Money can be resourced

internally from the organization .
externally from bodies with funds.
It can also be procured from external revenue generating activities from
internal resources.
External revenue can come from:
Letting out facilities utilizing spare capacities and maximizing the
return on mixed costs.
Selling places on internal training courses this is commonly done
on technical courses,or routine skill courses or whenever open
discussion on the organization is needed.


Providing external client consultancy Utilizing spare capacity of learning

consultants or trainers on external client opportunities.
Licensing training methodologies or selling materials where these are not
deemed to be of competitive advantage.
Providing HRD services to other organizations in sourcing utilising
fixed costs and resource to provide service to other organization as well as
the home base.

Should any of HRD be outsourced?
Some organizations have a general policy of not investing management time
and effort in anything other than their core business. Then the HRD activity
is given totally to the service provider and monitored against performance
The arguments on each side in respect of HRD department are:
Reduced direct overhead cost.
Lack of commitment to
Reduced management attention.
Organizational goals
Ability to control
Lack of long term ownership
Ability of wider range of skills
Degrees of freedom in
Risk in lack of continuity of key

Different methods of training adopted by trainers.
The most popular method is lecture method as it is easiest in the long
Case studies, buzz groups , brainstorming , business games simulation
etc requires innovation and is usually adopted from other countries.
Computer based training (CBT) and internet based training are fairly
close to program learning and goes at its own pace and moves from
one step to the other. It uses computers, videodiscs, floppy, touch
screens, browsing the net etc.
Simulation programs can also be developed in case of maintenance ,
planning , process work, sales and marketing.
Training can be conducted onthe-job or off-the-job. The off-the-job can
be in house or external training.

The on-the-job training is through counseling ,coaching and guidance
and has more advantages than other methods.This shapes the attitude
to machine, materials procedures etc.Culture of coaching and guiding is
important by the superiors who are held accountable for the
development of the subordinates.
In case of in-house off-the job training. Trainers can be insiders,
outsider or a combination. The advantages of having as faculty are:
They can relate to the company situation far better
they develop faith in training being a part of it ,and
The preparation and actual instruction contributes to self
The major requirement is to teach company employees methods of
training to make their efforts effective.

Strategies for Business Process Outsourcing
Outsourcing the entire training function is a huge change that when handled
properly can yield improved services and decreased costs.
Due to economic pressure companies are turning to total outsourcing of HR
Training is a perfect candidate for BPO as a function , as it is administrative
and it is not seen as a revenue producer.
Outsourcing all training means comprehensive , end-to-end outsourcing of
the management function to the design ,delivery and reporting.
The success of outsourcing will depend on companys motivation, its
industry, the type of training and how the process is managed.

The Benefits:
Produce Cost Savings:The potential for cost saving is the initial reason for
most companies opting for outsourcing.This cost reduction is through
consolidation of services,reengineering of processes, automation of
administration and delivery etc.By outsourcing training companies can save
30 to 40 % of their training costs.
Deliver high quality, efficient services and products:By outsourcing training
companies can focus resources on improving their products.
Provide cutting-edge technology:Another benefit of this narrow focus is that
the BPO provider stays on the cutting edge.
Expand global training capabilities.One reason is the access to global
distribution and call centre services 24/5. It also helps to quickly respond to
new markets in new countries and meet language requirements.

Who should outsource?
According to the Institute of Public Enterprise(IPE), some companies are
better suited to outsourcing than others.
Currently non durable goods manufacturers such as food processing ,
chemicals and plastics companies are outsourcing training most
often.Financial and insurance companies are outsourcing training the least.
Industries with a lot of compliance training are prime candidates for
outsourcing; examples pharmaceuticals and technology manufacturing
Companies in highly cyclical industries such as high tech consider
outsourcing because in house training makes it difficult to respond to
economic conditions.
Companies with a lot of industry generic training like safety training are
great opportunity for outsourcing.
Companies with a high degree of proprietary content in their training or
training that is very customized to the learners are not good targets for
outsourcing services.

Another deciding factor may be the target audience.Sometimes out
sources are educating not only employees but customers as well.
Performing a cost-benefit analysis helps to decide whether outsourcing
is right for the company. This is done by considering long term and
short term costs of continuing to provide in-house training solutions vs
using a outside firm.
It is important to make the right choice as it is nearly impossible to
bring training back in-house.

The Marriage:
Experts differ as to whether it is better to partner with an outsourcing company
that specializes in training or one with which you can bundle the rest of the HR
Today the trend is to bundle many of the human resources functions together (
including training)and outsource them to a single provider.
There is a fundamental difference between HR outsourcing and learning
outsourcing. Hr outsourcing tends to focus on transactional processing such
as payroll and HRIS.
Outsourcing the training function is more than just outsourcing transactional
tasks. Training concerns the intellectual value of a company.
Making the right decision is imperative as contracts typically last for five to ten
years. And it can be difficult to change partners.
The vendor must have experience in your requirements; and needs to possess
the necessary technical and technological capabilities.
Company and outsource employees will be working side by side for years.
It is important to look for a partner with appropriate course ware, size and infra
structure to support training needs effectively.
Given the relative immaturity of the learning BPO industry ,extensive client
experience is hard to find.

HRs new strategic role:
Outsourcing the training function dramatically changes th HR department,
this change is for the better.Training roles will be more strategic. There will
be partner management role, or a liaison to the outsourcing company.
It helps the HR executive to focus on strategic activities and curriculum
design, To drive and define what type of learning and skill set employees
need to be successful and ask the outsource partner to create suitable
learning products.
The success indicator is when employees do not realize training has been
completely outsourced.
The goal is to deliver high quality training at a reasonable price without losing
the personal touch of in-house training.
The need is to pay attention to the trend of outsourcing training; to look ways
to improve your value and decrease costs.

Core competencies: From training for functional skills to
learning in Indian Organization

Most current human resource development approaches and techniques are
unsuitable for developing core competencies of knowledge workers in
competitive firms today.
In todays knowledge organization the traditional model of expertise
development is challenged and the new directions are presented.
IPE presents a framework of decision-making in firms for the development
of the employees from entry level skills to functional skills, and from there to
cross-functional and integrative and creative competencies.
Indian Organizations are yet to recognize the creative and durable
contribution of knowledge workers and invest in them as a matter of
strategic concern for business.

Learning through experience :
Learning occurs in both deliberative and incidental modes.
The performance of a task often results in incidental learningthat has its
effect in and beyond the immediate learning environment.
Exploring how learning may occur without intention , and awareness is of
great relevance to understanding the process of learning tacit knowledge;
which have implication for on-the-job training and mentoring programmes.
An important part of many skills is sequencing of ordering stimuli and
Due to the importance of human performance ,the manner and the extent to
which sequential structure is learned has been a focus of much research.
Most recent investigations of sequence learning have been carried out using
choice-reaction tasks in which a single stimulus is presented in each trial,and
the task is to make an assigned response based on the identity of that

The most basic finding is a larger practice effect for repeated stimulus
sequences as compared to stimuli presented in random order- even though
the performers are not told of the existence of the sequence or to try ro use
sequential constraints among stimuli.
Although the sequence learning exhibited in choice reaction tasks appears
to occur in the absence of instruction to look for or use sequential
constraints,this does not mean that the performer is unaware of what had
been learned.
To determine whether knowledge that is evident in implicit measures of
learning derived from task performance are also evident in explicit measures
of learning obtained from tests of conscious recollection.
To evaluate better whether awareness of the sequence is necessary
requirement for obtaining the performance benefit of the repeated sequence,
experiments were carried on patients suffering from amnesia . The results
indicated such learning can occur without awareness.

Expertise and knowledge creation
While expertise draws on knowledge on one hand , it creates knowledge on
the other hand.
Explicit knowledge or coded knowledge ,as a body of organized information
can be understood at three levels. These are:
Shallow level ( presenting data in a organized order to provide
information in response to the question what is out there?)
Deeper level of understanding ( information is organized to deal with the
question why?: this looks for explanation of phenomena. The analysis of
information deals with reasoning, cause-effect analysis,existing knowledge)
Further deeper ,one examines how such analysis was made and pays
attention to reliability ,validity and tenability of explanations by replicating the
analysis previously undertaken.
Nonaka & Takeuchi (1995) addressed the issue of tacit vs coded knowledge
and raised the importance of tacit knowledge in human endeavours.

They observed tacit knowledge as experiential, practical and simultaneous and
therefore subjective compared to objective explicit or coded knowledge.
Complementary relations between two types of knowledge exists and a model
of knowledge conversion is based on social interaction between tacit and
coded knowledge.
Nonaka & Takeuchi postulated four different models of knowledge conversion.:
1.Socialization:Where experiences create knowledge.
2,Externalization: A process of articulating tacit knowledge to explicit concepts.
Typically concept creation is triggered by dialogue or collective reflection.
3.Combination: A process of systemizing concepts into knowledge system.
Individuals exchange and combine knowledge through documents,meetings etc.
by way of sorting,categorizing etc. Leading to new knowledge. This takes place
in formal education and training.
4.Internalization: A process embodying explicit knowledge into tacit
knowledge, closely related to learning by doing.

The role of organization in the process of organization knowledge creation
is to provide the proper context for facilitating group activities as well as the
creation and accumulation of knowledge at the individual level.
The essence lies in developing the organizational capability to
acquire,create ,accumulate and exploit knowledge which can be
represented as a knowledge spiral which shows circular movement between
the fur modes of knowledge conversion.
This is done by the way of linking explicit knowledge ,learning by doing,field
building and dialogue.
The most critical element of corporate strategy is to conceptualize a visual
about what kind of knowledge should be developed and to operationalize it
into a management system for implementation.

Training is a line management responsibility.
The immediate superior at any level in an organization exercises far more
potent influence,for good or ill, upon the development of his subordinates.
It is he who dispenses rewards and punishments, provides patterns of
leadership, creates the climate within the working group and structures
the tasks necessary to accomplish objectives.
He is the one who can recognize the need for specialist advice.
In future the training officer will become much more of an internal
consultant to management.
The trainer will act as a catalyst adviser to the working group,for his
qualities of judgment and insight as of his specialized knowledge of
training techniques.


There should be a conscious determination to involve managers at

every stage in the training process and encourage them to implement
their training responsibilities as an integral part of their management
of the people.
There is no substitute for a challenging job one which fully extends
a managers capabilities and provide him with the opportunities to
develop himself.
It is the bosss responsibility to grasp the opportunities . A persistent
encouragement of self help and self reliance on the part of the
managers is needed.

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