Organisation Dynamics and Human Resources Management
For many years the CIPD has been emphasizing the need for all organisations to invest heavily in the training and development. The logic is self-evident – every organisation needs skilled and capable staff. But when an organisation is facing budgetary challenges, training is often the first area to come under pressure. Accordingly you are required to examine the costs and benefits associated with the training function in the organisation you choose to examine.
The quality and skills of the employees of a business go a long way in determining the competitiveness of the business. Training can enhance the performance and productivity of the staff of a business by offering them the skills necessary for the fulfilment of their daily tasks (Armstrong, 2008). Effective training is required when new staff members are recruited, when the company’s business practice is changed or when new products are added.
As the organisation begins to expand, the level of skills that is needed to sustain it may need to be augmented.
This work is divided into sections one and two. Section one focuses on the effectiveness of training, type of training needed, difference between training and development, statutory responsibility of organisations towards the training of their staff, individual needs of staff members and the company policy. Section two gives a case study on CADBURY SCHWEPPES PLC
1.0 The effectiveness of training in a large-scale organisation:
Training is one of the most useful methods of improving the productivity of individuals and for passing on organisational development to both new and old personnel. Taylor (2009) argued that the constant needs of individual and organisational development can be traced to various demands in the work place and also demands in the market place which is characterised by stiff competition.
When the training processes are properly carried out, the following results can be obtained:
- Improved employee skills and knowledge
- Improved productivity
- Maintained superiority in the market place
- Better team work
- Fewer costumer complains
- Greater innovation within the business.
1.1Type of training
Bratton and Gold (2003) maintain that induction training ensures that a new employee becomes productive in the shortest possible time. This can help the organisation to avoid the costly mistakes likely to be made by new employees who are not accustomed to the procedures and techniques of their new jobs. How long the induction training takes will depend on the complexity of the job , the size of the business and the level and nature of the role of the new recruit (Sparrow and Hilltop, 1994).
The features of the induction training may include the following:
- Introduction of the duties of the job
- Meeting members of staff
- Seeing the company’s premises
- Learning about the values and aims of the organisation
- Learning about the policies and internal working of the business
1.2 On-job training
For this type of training, workers acquire skills whilst working with more experienced colleagues. This normally happens in the field of work or at the office premises. New recruits will do what is known as ‘shadowing’ or watch closely as more experienced workers carry out their duties (CIPD, 2009).
1.3 Off-job training
This is a type of training in which workers are taken out of the work premises. The training may occur at a training agency or a local institution, while some larger firms may have their own training institute. Taylor (2009) suggested that training may be in the form of lectures or self-study and can be used for the acquisition of knowledge and skills effective for tackling various issues in the work place.
This involves regular reviews of the employee’s progress. The line managers, who are solely responsible for this task, give advice to employees on how to improve their work. Feedback is provided for employees that can be used to set up new tasks or line of duties (Chapman, 2010)
This involves personal coaching and advising employees at the level of senior management and chief executive. An experienced person who has the necessary skills will come from outside the company and offer advice to guide them by offering practical solutions (Mayne, 2007).
1.6 The difference between training and development
According to Armstrong (2008), training focuses on the individual tasks of employees and how the job can be done better. It adds value to the job, such as what the job description is. It has a beginning and an end.
Development is aimed at improving individuals and getting the best out of them. It involves not only focusing on how to do the job but challenges individuals to devise better ways of doing the job. Training can be helpful for a short time; development, on the other hand, has no end. Training changes performance while development changes lives.
1.7 The statutory responsibility of organisations
Basically, employees have the right to training, especially those who have not reached the minimum standard of education. Since 6 April 2010, employees in organisations with 250 or more workers have had the right to request ‘time for training’ if they believe it will improve their performance at work (Chay and Norman 2003).
1.8 Cost and benefits of training
There is a four-step approach to measuring the savings provided by training and comparing these to cost. According to Blumberg et al. (2005), many organisations are interested in knowing how much is invested in training compared with the anticipated results. Though it is much easier to calculate the amount of money invested in training than to get the results of training, a useful tool that can be used is to compare cost per participant vis-à-vis savings per participant.
a.Evaluating the training cost
This will include the cost of the following:
- Facilitation fee
- Course materials
- Renting of facilities
- Production downtime ( including the workers’ time off the job)
b. Calculating the potential saving
To determine this, goals are set for post-training achievements by mapping out and evaluating the changes training can produce provided all other factors remain constant. The factors include the following:
- Current level of performance
- Translation of the current level into monetary terms
- Identification of the changes training can make
- Calculation of the savings that the target criteria will generate
- Identification of the number of employees in the training group
- Division of the expected savings of the number of workers participating to get the savings per head
c. Comparison of the cost to savings
This can be determined through:
- The multiplication of the cost per employee in training by the total number of participants
- The multiplication of the savings per employee in training by the total number of participants
- Comparison of the figures to determine the business case for training
The training programme in CADBURY SCHWEPPES PLC- a case study
This report looks at the training programme of Cadbury Schweppes PLC, with its logo, ‘passion for the people’. It gives an overview of the company’s aims and objectives and discusses the contribution of the training programme on productivity. Finally, it discusses why the policy should be maintained despite its high cost.
Cadbury Schweppes manufactures and sells confectionary and beverages (Cadbury, 2008) and is deemed to be the largest confectionary company in the world. While its headquarters are in Berkeley Square, London, United Kingdom, it has a strong presence in the regional supply of beverages across North America and Asia. With its track record of being in operation for over 200 years, the company is known for its standards of high quality and continues to manufacture products that are enjoyed throughout the world.
The employees of the company have played a significant role in its success and over the years; the company has committed itself to upholding high standards for all its employees and demands this standard from employees in the discharge of their jobs. The aim is to have individuals who are motivated, developed and nurtured and who have exceptional talents.
2.2 The company’s policy on training and development
Cadbury Schweppes aims to be ‘a place to be’; it has strived to establish itself as an organisation where its employees and colleagues are proud to be and are devoted to their work. As the organisation expands, it has to do business in a competitive environment vis-à-vis the changing demand of their consumers and the increasing expectations of their shareholders and employees (Cadbury, 2008). The company has put in place the ‘our people strategy’ mainly to ensure that its present and future needs are catered for. This strategy helps to project the company’s commitment to ensuring that the employees are given a chance to realise their full potential. In practice, the notable training programme is aimed at improving the decision-making abilities of employees and fostering their marketing and sales prowess. It seeks to enlighten the new members of staff on the ways to manage people and to remind its current employees of this.
In addition to its policy of open communication and involvement of the employees, Cadbury has put in place an approach to improve the work rate and efficiency of its workers. The company assesses the current skills of its present employees and ensures that these are improved. It develops the prevailing talents and increases the group managers’ skills on a practical level by giving them opportunities to expand globally through international exposure and experience. By means of these practices, the company aims to develop the individual skills of employees; inculcating and conveying learning and knowledge acumen to promote team work within the organisation.
2.3 Learning and development / individual needs of employees
The learning and development practices in the company ensure that employees are given opportunities to realise their full potential which will ultimately enhance the company. This is a responsibility shared by both the organisation and the employees – the company providing the enabling environment and opportunities and employees displaying the needed motivation and commitment. During the learning and development activities, the focus is on how the knowledge, capabilities, experience and performances of individual employees and their teams are developed. The managers are given the role of determining the individual training needs of employees and relating these to the necessary development opportunities by ensuring that learning is transferred back to the work place.
2.4 ‘Passion for people’ policies at Cadbury
This policy is a comprehensive training and motivating programme in practice in the company. It emphasises the role of the employee to the manager and points out the culture of Cadbury Schweppes which makes it a good place to be. The programme also points out the ethical standards expected of managers and for the organisation as a whole. The programme, which comes in modules, can be integrated in to the various needs of the company and can be used by the managers who are thereby equipped to making teams more productive.
The programme’s aim and objectives are to:
- Educate newcomers on the necessary approaches to be used for people management Revive the approach in the minds of older employees
- Stress the role of people to the manager
- State the ethical standards for the managers and the business
- Inculcate best practices
This programme has been effective for getting the required commitment and creating a good working environment for the workers. This has helped to project the image of the company as the place to be. Fundamentally, the employees are inspired to work to the best of their abilities.
2.5 Training costs/ benefits of staff training
There are over 55,000 employees in the organisation and, annually, a lot of training programmes are organised Based on the company’s policy on training, the cost of training staff is very high. These costs can be evaluated by using the tool given in section one (1.8 cost and benefits of training). When these costs are compared with the benefits, the results make it clear that the large sum of money invested in training is justified.
Some of these results include:
- Reduced errors
- Reduced equipment break down
- Reduced cost of recruiting new employees (staff training has helped to build up employees’ confidence so that they take up more senior roles)
- Increased revenue collection
- Greater efficiency
Cadbury Schweppes PLC has been successful over the years owing to its strength in its social capital. The company has inculcated its system in the organisation and maintained a productive and positive work environment for all employees.
In addition, the organisation has what it calls ‘our people strategy’. This has been introduced to get the best out of each employee and to ensure that everyone realises their full potential. More than 90 per cent of the company’s employees worldwide affirm that they are proud to be associated with it. They know what their requirements are and always strive to improve their productivity. The cost incurred by the company in carrying out its various training programmes is high but is low in comparison to the level of output and the success derived from it. So it has prescribed that the training budgets should not be tampered with despite the economic pressure, as this is from where the company draws its strength.
- Cadbury (2008) Annual reports and accounts [online]. Available from: http://cadburyar2008.production.investis.com/overview/ataglance.aspx [Accessed: 15 October 2010]
- Blumberg, B., Cooper, D. R. and Schindler, P. S. (2005) Business Research Methods. 2nd European Edition. UK: McGraw-Hill Education
- CIMA (2009).Case study [online].Available from: http://www.cimaglobal.com/documents/importeddocuments/careers_casestudy_cadburyschweppes.pdf [Accessed: 15 October 2010]
- Bratton, J and Gold, J. (2003) Human Resource Management. Theory and practice 3rd edition, Palgrave Macmillan
- HRM guide (1991).Organizations and human resource development [online]. Available from: http:www.hrmguide.co.uk/hrm/chap11/ch11-links2.htm [Accessed: 15 October 2010]
- CIPD (2009). Costing and benchmarking learning and development [online]. July 2009. Available from: http://www.cipd.co.uk/subjects/lrnanaddev/general/cstngtrain.htm [Accessed: 17 October 2010]
- Chapman, A (2010).Training programme evaluation [online]. Available from: http:// www.businessballs.com/trainingprogramevaluation.htmworkplace_training_ evaluation. [Accessed: 17 October, 2010]
- Chay, L and Norman, (2003).Creating value for employees: investment in employee development, International journal of Human Resource Management. 14(6).p 981–1000
- Sparrow, P. R. and Hilltop, J. A. (1994). European Human Resource Management in Transition. New York: Prentice Hall
- Taylor, M. (2009). Six types of training and development techniques [online]. January 2009 Available from: http://www.ezinearticles.com/?six-types-of-training-and-development-technique [Accessed 17 October 2010]
- Thinking made easy (2009) Training process in Cadbury Schweppes plc [online]. August 2009. Available from:http://www.ivythesis.typepad.com/term-paper-topics/2009/08/training-process-in-cadbury-schweppes-plc.html [Accessed 17 October ]
- Tutor2u (2007). Kinds of training [online].Available from: http://www.tutor2u.net/business/gcse/people.training_types.htm. [Accessed: 17 October]
- Business link (2010). Improve the performance of staff [online]. Available from: http://www.businesslink.gov.uk/bdotg/action/layer?=en&topicId=1074215101 [Accessed: 17 October 2010]
- Mayne, J. (2007). Challenges and Lessons in Implementing Results-based Management Evaluation, 13(1), 87–109.
- Michael Armstrong (2008), Human resources management practise, 10th edition, kogan pages