The Importance of Training and Development in Human Resources Management - Research Proposal Example

The Importance of Training and Development in Human Resources Management Student’s Name Grade Course Tutor’s Name Date Abstract This proposal seeks to investigate whether indeed organisations know what is required for Training and Development (T&D) to serve any strategic importance in human resource management and whether T&D has a return on investment. A quantitative research approach is proposed for use, and a sample size of 100 respondents in two organisations is targeted using a questionnaire. The proposal ends with identifying expected outcomes which include the probability that T&D is important for firms, but its efficacy depends on its design and implementation. Another expected outcome would be that when used well, organisations are likely to realise a return on the investments made in T&D. Introduction Human resource professions are increasingly agreeing that training and development is vital for purposes of enhancing the skills and capabilities of an organisation’s human capital. However, it is still contentious whether or not such training and development gives a return on the investments made to it by different organisations. The importance of the proposed investigation to this writer is that it will allow a deeper understanding of the different aspects of human resource management, and especially a determination on whether training and development adds any value to an organisation. Academically, this investigation is intended to add to the wealth of knowledge that exists about HRM. Specifically, the proposed research will seek to make contributions to existing knowledge gaps about whether organisations realise returns for the investments made towards training and developing skills in their employees. From a business perspective, the proposed research is expected to provide insight to organisation leaders, who depending on the findings, will decide whether training and development has any strategic value for their firms. Aim of the proposed study 1. To determine the importance (or lack thereof) of training and development in HRM 2. To determine whether T&D has any strategic value for organisations 3. To determine whether it is always possible for organisations to realise a return on the investment made in T&D Literature review Training and Development in human resources is a widely discussed subject. Authors like Arthur et al. (2003), Billet (2004), Bishop (2008), Blume et al. (2010), Burke and Hutchins (2007), Phillips (2003), Devins and Johnson (2003), and Kirkpatrick and Kirkpatrick (2009) among others have investigated T&D’s use in small and large organisations. Although it is hard to find a common definition of T&D among all cited authors, it is largely agreed that training occurs when an expert works with learners with the intention of transferring specific knowledge and/or skills to them in order to improve their performances in the work place (Yawson 2009, p. 14). More aptly, Pepper (1984, cited by Wilson 1999, p. 118) defines training as “that organised process concerned with the acquisition of capability, or the maintenance of capability”. To make any meaningful contribution to human resources, Fitzgerald (1992, p. 81) observes that “training must be tied to performance; otherwise, it is an event with little payback for the organisation”. In other words, training is important for an organisation if it succeeds in paying back the investment made to it through giving employees more skills and knowledge and preparing them for future job roles. On its part, development, when used in the HRM context, refers to broad and continuous multi-faceted activities that are meant to bring employees to a new performance threshold, often for purposes of enabling them to perform new organisational roles in the future (Asano & Ohara 2002, p. 7; McNamara 2008, p. 10). Despite the different definitions, used together in HRM, the words training and development are used to refer to the process through which organisations “promote individual and organisational excellence by providing opportunities to develop workplace skills” (Laird, Holton & Naquin 2003, p. 6). Similar sentiments are shared by Noe (2002), who observes that while development is long-term, training serves both the short- and long-term needs for skills enhancement in HRM. In spite of the obvious-looking advantages that organisations would have by providing T&D to employees, Coetzer, Redmond and Sharafizad (2010, p. 426) note that not all firms are willing, or can afford such programmes. The unwilling organisations are not entirely convinced regarding the benefits of T&D, while those who cannot afford are often likely to be small or medium-sized firms that have budget constraints (Coetzer et al. 2012, p. 426). From their submission, Coetzer et al. (2012, p. 427) reveal that: T&D comes at a cost; that some stakeholders “fear that their staff will be poached or that they will resign following participation in T&D”; and that some shareholders are not convinced regarding the benefits of T&D and are thus reluctant to invest in the same. Even in organisations where T&D is done on a regular basis, O’Connor and Semour (1994, p.240) observe that performance appraisal of existing employees is essential for purposes of identifying their weak areas and formulating T&D programmes that would remedy such areas; unfortunately, that is not always the case. Wilson and Western (2001, p. 98) further observe that a substantial number of organisations that have T&D lack a “clear sense of direction” and as such, their efforts to equip employees with skills does not always support organisational objectives. The aforementioned is supported by Investors in People (1991, p. 21), which indicates that T&D needs ought to be “regularly reviewed against business objectives” for them to have any meaningful value to the organisation. Commenting about the vital components that every organisation needs to balance in order to ensure that T&D programmes are successful, Walter (2001, p. 8) states that the skills, knowledge and the attitudes of employees must be weighed together for purposes of producing “predictable and consistent results”. In other words, T&D projects should be done in an environment where the trainers understand the impact and the likely results of T&D interventions. Employee attitudes and motivational issues are thus indicated as essentials that can affect the outcomes of T&D either positively or negatively. On his part, Kirkpatrick (2012) observes that organisations can improve T&D performance through four considerations namely: reaction (gauging how participants/ employees react to the learning environment); learning (gauging the degree to which the participants/employees acquire the intended attitudes, skills and knowledge); behaviour (gauging the extent to which the participants apply the skills, knowledge or attitudes acquired through T&D projects); and results (gauging the extent to which targeted outcomes were attained out of the T&D projects). Observing why T&D does not always guarantee results in organisations, Wilson and Western (2001, p. 99) note that T&D plans that are “inappropriate, too expensive” or those which are constrained by time are likely to fail. Additionally, apathy and indifference by the management and the employees contribute to unsuccessful T&D programmes. In other words, Wilson and Western (2001, p. 99) allude to the possibility that successful T&D would need to be appropriate for the targeted employees, affordable, and must be supported by willing employees and managers. Additionally, such programmes must be founded on the need to enhance employees’ skills and competencies to be better performers in the workplace, both in the short- and long-terms. The importance of T&D is understandably measured by its contribution to short-term and long-term effectiveness (and profitability in profit-making organisations). The return on investment (ROI) question is closely related to the effectiveness that training budgets deliver to a firm (Adamson & Caple 1996, p. 3). For starters, it is suggested that firms need to know what the benefit-to-cost ratio of T&D is by dividing the estimated programme benefits with the programme costs as indicated in the equation below: Source: Kaminski & Lopes (2009, p. 4) The ROI, calculated as a percentage on the other hand, requires an organisation to subtract the benefit of T&D from its cost, and divide the resultant number by the cost and multiply the results with 100 as illustrated below Source: Kaminski & Lopes (2009, p. 4) According to Phillips (2007, p, 4), the use of ROI in HR is essential because it determines the contributions that programmes (e.g. T&D) have on the organisation; it justifies and defends budgets; and it identifies inefficiencies in programmes, thus signalling a need to redesign or eliminate them. Proactively, the use of ROI according to Phillips (2007, p.4) enables organisations to align their HR needs to business needs. Additionally, ROI usage enables HR professionals to identify successful programmes and determine whether there is a need to implement them in other human resources development areas (Phillips 2007, p.4). Ideally, Kaminski and Lopes (2009, p. 3) observes that T&D projects (and other HR projects as well) should attain 100 percent ROI, which would be indicative that they were able to recoup the costs involved therein through benefits. However, even where 100 percent ROI is not attained, there could be some social or hidden benefits that the organisation might want to consider before deciding whether or not the T&D project had any strategic importance or value to the company. If for example a T&D project realises a 97% ROI, and succeeds in making the employees more committed to and happier in their places of work, the organisation, as observed by Kaminski and Lopes (2009, p. 3), would have arguably justified the 3% loss as the cost of attaining increased commitment to and happiness in the workplace. Bernthal (2003, p.1) argues that before implementing a T&D programmes, it is important that the organisation considers the expectations of all stakeholders and see how best they can be met. For example, the participants would expect the T&D programme to improve their skills, while the managers would be hoping that the employees will be more productive. The HR department would on the other hand be expecting the programme to address skills deficit in the workplace while the investors would be expecting the project to have ‘a positive return on investment’ (Bernthal 2003, p. 1). An effective T&D programme would succeed in satisfying the expectations of everyone as indicated by Bernthal (2003, p.1) above, which are by inference linked to each other. Methodology This research will use quantitative data collection techniques. Quantitative data will be gathered through questionnaires and a positivist approach will be used in the analysis. According to Anderson (2004, p.13), positivist research “analyse quantitative data using statistically valid techniques and so produce quantifiable and, if possible, generalised conclusions”. In qualitative research, Anderson (2004, p. 137) indicates that a researcher can analyse “significant themes that are suggested by a range of sources”, and “understand the interrelations between different actors”. Additionally, through qualitative research, the researcher suspends his/her preconceptions, and instead values and utilises the information provided by the research participants. Considering that the proposed project will be seeking to establish the importance of T&D in HRM, through a survey in two organisations only, positivist research appears better suited for this project. The project will be conducted in two organisations that have T&D as part of their HRM. Questionnaires will then be administered randomly to departmental managers in the two organisations in order to determine the relative impact that T&D has had on the employees in the T&D-practicing companies. The management will be gauged to determine whether work performances register any improvements after T&D. The researcher will also seek to find how the two companies quantify the value of the T&D results. Based on the results, the researcher will infer whether or not organisations benefit (or get a ROI) from T&D. The proposed research sample for this project will be about 100 managers and departmental heads from two companies. The number is in this case considered an important sample size, and one whose findings can be obtained and analysed within the research timeframe. Ethics Resnik (2011, para. 1) defines ethics in research as the “norms for conduct that distinguish what is acceptable and unacceptable behaviour”. To ensure that the proposed project is conducted in an ethical manner therefore, the researcher will uphold honesty while communicating with the targeted sample; will be objective and careful when analysing data; will uphold integrity throughout the project, and will strive to be open and/or discreet depending on the agreements made with the respondents when sharing results, ideas or managing the respondents’ identities. Additionally, and as indicated by University of Minnesota Centre for Bioethics (2003, p. 4) the research participants will not be coerced into participation; rather, they will do so out of their own self-will. Respecting other researchers’ intellectual property will also come in handy during the review of literature, since as suggested by Reskin (2011, n.pag.), researchers need to give credit to other people’s ideas, and acknowledge all or any contributions made towards the research by other people. Validity To ensure validity, the researcher will avoid any generalisations that may hinder the accuracy of findings. For example, the researcher will take note of unique T&D practices in the subject organisations and determine whether they had any effect on the efficacy of the T&D programme. Limitations Limitations in the proposed research are closely tied to quantitative research, which requires large samples, and presents researchers with logistical difficulties as indicated by Creswell (2009, p. 11). The questionnaire will also be short and rigid in structure, and such may hinder flexibility in the research as indicated by Burns (2000, pp. 13-14). Analysing findings According to Hesketh and Laidwaw (2003) data obtained from quantitative research can be analysed by determining the: frequency of variables; differences in variables; or statistical tests that estimate the results’ probability and significance. In the proposed project, the latter will be used since it is more suited as an analytical tool that will enable the researcher to determine the importance of T&D, and whether it does indeed have return for investments made therein. Expected conclusions Depending on the design and implementation of T&D projects, it is possible that different managers would have different views regarding the same. For example, where T&D projects are designed to remedy existing skills shortages, it is possible that such projects would be successful, and are thus likely to have a good ROI. However, it is also possible that if T&D programmes are done without proper consideration of the skills gaps or knowledge in an organisation, the results would be poor, hence resulting in a low ROI. It is also possible that no two organisations are similar in their use of T&D, and this could make the difference between the relative perceptions of importance towards such programmes. Overall, it would be expected that a well thought-out T&D project should be able to create the skills and competencies needed to enhance the productivity of employees. In an ideal case therefore, T&D should be of importance since it would be expected to improve human resource capacities. Consequently, it would also be expected that T&D is considered important, and that it has a relatively impressive ROI on the resources and time invested in it. Gantt chart (2013) Action January February March April May June Identifying the research idea and topic Literature review Formulating questionnaires Identifying respondents, creating a rapport with them, and issuing the questionnaires Follow-up with respondents Collecting the filled up questionnaires Analysing Data Documenting Findings Writing the final report References Adamson, P & Caple, 1996, ‘The training and development audit evolves: is your training and development budget wasted?’ Journal of European Industrial Training, vol. 20, no. 5, pp. 3-12. Anderson, V 2004, Research methods in HRM, CIPD, London Arthur, W, Bennet, W, Edens, P, & Bell, S 2003, ‘ Effectiveness of training in organisations: a meta-analysis of design and evaluation features’, Journal of Applied Psychology, vol. 88, no. 2, pp. 234-245. Asano, M & Ohara, K2002, ‘Human resource development systems focusing on HR ROI’, NRI Papers, no. 51, July, pp. 1-9. Bernthal, P 2003, ‘Measuring the impact of training and development’, Development Dimensions International White Paper, pp. 1-6. Billet, S 2004, ‘Workplace participatory practices: conceptualising workplaces as learning environments’, Journal of Workplace Learning, vol. 16, no. 6, pp. 312-324. Bishop, D 2008, ‘The small enterprise in the training market’, Education + Training, vol. 50, nos. 8/9, pp. 661-673. Blume, B, Ford, J, Baldwin, T & Huang, J 2010, ‘Transfer of training- a meta-analytic review’, Journal of Management, vol. 39, pp. 1065-1105. Burke, L A & Hutchins, H M 2007, ‘Training transfer: an integrative literature review’, Human Resource Development Review, vol. 6, no. 3, pp. 263-269. Burns, R 2000, Introduction to research methods, Sage, London. Coetzer, A, Redmond, J & Sharafizad, J 2012, ‘decision making regarding access to training and development in medium-sized enterprises: an exploratory study using the critical incident technique’, European Journal of Training and Development, vol. 6, no.4, pp. 426-447. Creswell, J W 2009, Research design: qualitative, quantitative and mixed methods approaches, SAGE Publications Inc., California. Devins, D & Johnson, S 2003, ‘Training and development in SMEs’, International Small Business Journal, vol. 21, no. 2, pp. 213-228. Fitzgerald, W 1992, ‘Training versus development’, Training & Development, May, pp. 81-84. Hesketh, E A & Laidlaw, J. M 2003, ‘Quantitative research’, viewed 11 January 2013, . Investors in People 1991, The national standard- links to the assessment indicators, Employment Department, Sheffield. Kaminski, K & Lopes, T 2009, ‘Return on investment: training and development’, Society for Human Resource Management, viewed 10 January 2013, http://www.shrm.org/education/hreducation/documents/09-0168%20kaminski%20roi%20tnd%20im_final.pdf. Kirkpatrick, D 2012, ‘Getting to Kirkpatrick levels 3 and 4: creating believable value’, viewed 11 January 2013, < http://www.trainingindustry.com/media/15260939/11_5_12_executiveseminarseries_materials.pdf>. Kirkpatrick, D L & Kirkpatrick J D 2009, Evaluating training programs, Berrett-Koehler Publishers, San Francisco, CA. Laird, D, Holton, E F, & Naquin, S 2003, Approaches to training and development: third edition revised and updated, Basic Books, New York. Noe, R A 2002, Employee training and development, (2nd edition), McGraw Hill, Columbus, OH. O’Connor, J & Semour, J 1994, Training with NPL- Skills for managers, trainers and communicators, The Aquarian Press, California. Phillips, J J 2003, Return on investment in training and performance improvement programs (second edition), Elsevier Inc, Cambridge. Phillips, J J 2007, ‘Measuring ROI in human resources- calculating the impact of ROI on HR programs’, ROI Institute, pp. 1-23, viewed 10 January 2013, http://www.competentiebeleid.be/assets/waarom/Measuring_ROI.pdf. Reskin, D B 2011, ‘What is ethics in research & why is it important?’ The National Institute of Environmental Health Sciences, viewed 11 January 2013, http://www.niehs.nih.gov/research/resources/bioethics/whatis/>. University of Minnesota Centre for Bioethics 2003, ‘A guide to bioethics’, viewed 11 January 2013, . Walter, D 2001, Training on the job: a new team-driven approach that empowers employees, is quick to implement, gets bottom-line results, American Society for Training and Development, New York. Wilson, J P & Western, S 2001, ‘performance appraisal: an obstacle to training and development?’ Career Development International, vol. 6, no. 2, pp. 93-100. Wilson, J P 1999, Human resource development: learning & training for individuals & organisations, Kogan Page Publishers, London. Yawson, F 2009, ‘Training and development in Customs Excise and Preventative Service (CEPS) in Ghana’, Institute of Distance Learning- Thesis, viewed 10 January 2013, http://dspace.knust.edu.gh:8080/jspui/bitstream/123456789/587/1/Frank%20Yawson.pdf. Appendix A: Questionnaire Company XYZ Questionnaire addressed to Managers and/or Departmental Heads Focus: The Importance of T&D in improving Skills and Competencies Respondent’s Managerial or Departmental Position: _____________ Please answer honestly. Conditions for the research All personal information will not be disclosed to third parties without the express permission of the respondents; Information obtained from this questionnaire will not be used for other purposes other than for educational purposes. Questions: 1. How would you rate Training and Development programmes in your company or department? a. Very important b. Fairly important c. Not important 2. How frequently does your company have T&D programmes? a. Annually b. Quarterly c. Every half-year d. On a needs-basis 3. What would you consider the biggest impediment to HR efficiencies in your company? a. Unmotivated employees b. Lack of skills c. HR is highly efficient in my organisation/ department d. I do not know 4. Do you think T&D has a return on investment? a. Yes b. No c. The results depend on the T&D project and the reasons why it is conducted 5. Should there be a dedicated budget for T&D? a. Yes b. No 6. How do you measure ROI on T&D in your company or department? (You can consult for this question if you do not have a ready answer). Please indicate your answer in writing. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 7. Based on the above, do T&D programmes in your organisation or department have good returns on the investments made? a. Yes b. No c. Yes, but not always 8. What is your overall view regarding the importance or lack thereof of T&D in your organisation or department (please indicate in writing in the space below) ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Read More