the competitive

7/30/2019 The Competitive

1/8

Introduction: training and developm entas an incomplet e manag ement task

T he political and econ omic changes in east-

ern Eu ropean countr ies and th e increasing

attraction of cheap labour count ries as pro-

duction locations for western E uropeancomp anies give rise to the notion that west-

ern Eu rope as a production location and

therefore employment in western Europ e can

be secured on t he one hand t hrough a con-

stant increase in production and on the ot her

hand bett er quality in goods and services.

T his, however, requ ires a highly comp etent ,

skilled workforce. Indeed, T here is wide-

spread consensus among comm entators and

politicians alike that training shou ld be

encouraged, since it has a d esirable effect on

productivity and improves national econom-

ic perform ance (Ashton and Felstead,

1995).

Perhap s as a consequence of the above,

comp anies in G ermany have shown a yearly

increase in expenditure on t raining and d evel-

opment of approximately 83 billion marks

(Institut der D eutschen Wirtschaft, 1994).

T his figure is from 1992 and shows an

increase of almost 30 billion m arks over 1987 .

T he figure for expenditure in Britain is some-

what nebulous; the estimated annu al expendi-

ture of 14.4bn given by the Training Agency

(1989) is disputed . Nevertheless, what is clear

is that comp anies are investing in training and

development. Almost half of the amoun t

spent in G ermany (40 b illion m arks) has been

financed by the companies themselves. A

survey investigating the futu re of training and

development showed that only 6 per cent of

those compan ies questioned felt that there

would be a d ecrease in training activities

within their organization, whereas approxi-mately 30 per cent stated that the importance

of training and d evelopment would r ise and

the rem aining felt that t raining and d evelop-

ment would continue to play an impor tant

role (Institut d er Deu tschen Wirtschaft,

1994).

T he human potential within an organization

is a major competitive factor: in global compet-

itiveness, where shor ter produ ct life cycles,

benchm arking and faster information transfer

are the keys to success, human resources(whose skills are often company-specific)

provide a m id- to long-term advantage for

companies. T hey play a strategic role: todays

investment in the workforce secures the

4

Journal of W orkplace Learning

Volume 9 Number 1 1997 pp. 411

M CB Un iv ersi ty Press I SSN 13 66 -5 62 6

The com pet itiv efa ct or: t raining a nddevelopment as a

st rategic managem enttask

Peter M hlemeyer and

M axine Clarke

The authorsPeter M hlemeyer is a Professor at Fachhochschule

Worm s, European Business Managem ent.

M axine Clarke is Senior Lecturer at HEAO Arnhem , The

Netherlands.

Abstract

The polit ical and econom ic changes in eastern European

countries and the increasing att raction of cheap labour

countries as production locations for w estern European

companies give r ise to the not ion that w estern European

employm ent can only be secured by a constant increase in

production coupled w ith better quality in goods and

services. This requires a highly skill ed w orkf orce; indeed

the human potent ia l w i th in an organizat ion is a major

competit ive factor. In global com petit iveness, w here

shorter l ife cycles, benchmarking and faster inform ation

tran sfer are the keys to success, hum an resources provide

a mid- to lon g-term advant age for companies. They play a

strategic role: todays investment in the w orkforce secures

the innovatio n and compet it iveness of tom orrow. There-

fore, compan y training and development should be view ed

as an importan t m anagement t ask. Discusses the manage-

ment t asks for company training: analysing trainingrequirements, preparation and implementation, know-

how transfer wi th in a company and contro l l ing t ra in ing

and development, w hi le h ighl ight ing the importance of

training and development w ithin the overall strategic

planning process.


2/8

innovation and compet itiveness of tomorrow.

T herefore, company training and development

should be viewed as an important m anagement

task (T hom and Blunck, 1992). Many compa-

nies are aware of this importance (otherwise

how can the increasing expenditure on training

and development, even in times of economic

crisis, be explained?). Nevertheless, in many

compan ies, the int ra-organizational manage-

ment of this strategic resource leaves much to

be desired.

Planning for training and development in

response to specific requirements of the orga-

nization and its development (cf. Staud t,

1995) is not always a deliberate m easure;

rather it often occurs only as a result of prob-

lems (e.g. with th e realization that n ew tech-

nology cannot be introduced comp etentlywithout a cor responding increase in invest-

ment in labour). Results of a recently pub-

lished empirical study on strategic training

(University of Chemn itz, 1995) show that

only 18 per cent of those comp anies ques-

tioned strategically plan their training and

development requirements. T he majority of

companies stated that p lanning for training

and development occurred on ly as a result of

prob lems arising at the workplace. An exam-

ple of problem-directed versus strategically-oriented p lanning for training and d evelop-

ment is shown in Figure 1.

On t he surface it appears that companies

are prepared to provide the resources

required for a training and d evelopment

program me; nevertheless the planning and

management appear to take the form of

ordering from a travel brochu re, i.e. the

training arrives pre-packaged. T he most

that can be expected in the way of prepara-

tion is a map showing the route to the semi-

nar location and , in term s of monitoring the

success of the training, this often extend s

only as far as asking if the t rainer was good ,

the par ticipant s friendly, the accomm odation

and food okay?

With th is attitude, every investment in

training, whatever it costs, is a waste of

mon ey. Em ployees take time off work in order

to attend seminars and are therefore missing

from their workplace. Often, on their retur n

to the workplace, instead of a feeling of suc-

cess, employees can end up frustrated, as the

connection between the information learnedand that required for work is not clear, with

the result that new know-how is not effectively

implemented at the workplace.

Training is an extremely comp licated

management task, when one considers the

objectives that it shou ld fulfil (for example,

strengthening com pany competitiveness

through the development of personnel). T he

success of training is dependent on whether

the many varied tasks implicit within the

training process are recognized and compe-

tently managed. In order to und erstand the

complexity of the training process it should be

structured in its ideal form (Staudt et al.,

1993). Four stages of the process can be

identified and these provide the core of stan-

dard p rocedures for training planning. Once

und erstood, they also provide the require-

men ts for successfully managing the process.

T he four stages are:

1 analysing the company training require-

ments;

2 preparation and implementation of thetraining;

3 securing success: know-how transfer within

the workplace; and

4 controlling training and development.

M anagem ent t asks for company training

Analysing the company training

requirements

Delayed reactions to t echnical developments,

changes in the m arket, und er-utilized plantand m achinery capacity and p roblems with

recruitm ent in a comp any are often a result of

a deficit in skills, the root cause of which is

the lack of planning for the necessary training

5

The competit ive factor

Peter M hlemeyer and M axine Clarke


Volume 9 Number 1 1997 411

Planning and investmentin new technology

0

Introduction oftechnology

1

Lack of know -how leads to

problems w ith technology2

Training ofemployees

3

Problem directed

Analysis of skil l structureand potent ia l

Planning for new technologyand analysis of training needs

Investment in technology plustraining from

supplier/manufacturer

Introductionof technology

Strategically oriente d1

Example

t

t

t

t

t

Figure 1 Planning for training and development: problem -directed versus

strategically-oriented


3/8

and d evelopment . T his can create costs for a

company as well as prevent the com pany

from gaining/maintaining competitive advan-

tage. T he first task within a management-

guided training and development pro-

gramm e, therefore, must be systematically to

analyse and pinp oint the t raining needs of the

employees.

Specifically, changes in the following struc-

tural factors may require a rethinking with

respect to training (Staud t et al., 1994):

A t market level: that is throu gh changes in

the m arket (for example changes in cus-

tomer behaviour because of environm ental

awareness, changes in values, competitive

pressure, changes in legislation). T his can

lead to new prod uct p references or even to

a deman d for totally new produ cts andservices. It may be necessary to find new

markets and /or new niches for new prod-

ucts and to prepare employees for such

changes, to integrate them an d up skill

them for the change process. For example,

the new EU Environmen tal Audit legisla-

tion will necessitate training and/or re-

training if the company operates in mar-

kets that will be affected (Mhlemeyer,

1995).

Technology: that is the introduction of new

techn ology in the organization (for exam-

ple multimedia, environm ental production

processes, new methods of production)

requ ires training employees in the use of

the technology. It should not be the case

that such t raining first occurs when the

new technology is already in p lace; an early

recognition of the potential problems that

can arise and th en measures to ensure that

employees are fully informed and prop erly

trained can lead to a redu ction in the fric-

tion caused by the introduction of suchtechnology.

Human resources: that is the recruitm ent

of new employees or the development of

new tasks imp lies the need to t rain it

may be n ecessary to t rain new em ployees

(in, for examp le, electronic d ata process-

ing, language skills, management tasks),

or employees who, becau se of new tasks

within the company, need to be ret rained

or trained to work in teams or groups (the

concepts of teams, team leadership,group objectives, etc., that is personnel

developm ent is to b e considered along-

side training requirements (cf. Hofman n,

1992)).

When t he above structural factors are taken

into consideration, a concrete analysis of

training requirements can be carried out .

H owever, this implies that management is

aware of the need for a training analysis and

that the results of this analysis are integrated

within the overall plann ing process, so that

there is a correlation between the develop-

ment of the organization and the training

needs of the organization.

Preparation and implem entation of the

training

Another important task within the process is

the preparation and implementation of train-

ing. Once th e training needs have been

analysed, strategies must be developed as to

the structure, time and place of the training

(see Figure 2). T hese must be developed in

line with the set objectives for em ployee

training.

T he following points should be considered

here:

Individual training

Is it the task of each ind ividual employee to

take the training initiative (self-directed learn-

ing), that is to decide what help is required

from the organization and what resources areavailable for his/her training (for example time

off work, informat ion from line managers,

reimbu rsemen t of course fees, travel expens-

es, etc.)? Qu estions that shou ld be asked

include:

Should he/she carry out this training dur-

ing working hour s on-the-job, for exam-

ple learning using a PC training pro-

gramme interact ive learning at work?

Should the training take place out of work-

ing hours, at hom e near-the-job, for

6

The competi t ive factor

Peter M hlemeyer and Maxine Clarke



Training

Individual init iat ive

External

Co-operation/jo in t

Internal

Figure 2 Training strategies


4/8

example working through pre-prepared

practice material, etc?

Should the training be carried out by exter-

nal bod ies off-the-job, for example at a

language school, evening classes, etc.?

For explanations of on-th e-job, n ear-the-joband off-the-job, see Scholz (1991).

Internal training

Should the training be carried out within and

by the organization? What p reparation is

required and what resources should be pro-

vided? (Com pare recent developments by

large bu sinesses, for exam ple Volkswagen

AGs outsourcing methods, that is when a

training departm ent becomes independent

but con tinues to carr y out projects mainly for

that comp any.) Questions that should beasked includ e:

Is the training to be integrated into the

norm al routines of the workplace on-the-

job, for example trainin g at the workp lace

by line managers or colleagues?

Is the training to be carried out by an

internal training departmen t or within a

project group-near-the-job, for example

learning through discussion groups with

various part icipants, such as quality circles,

innovation groups or Kaizen groups? Can individual training requirements be

satisfied through internal company semi-

nars off-the-job, for example are special

seminars held for management and/or

highly skilled employees?

Co-operation/joint training

Does training take place jointly with sub -

sidiaries or with other com panies, for example

with supp liers or customers? How mu ch a

possibility/reality is joint t raining, for example

through: short-term exchange of employees from

different sub sidiaries on-the-job;

joint training rooms and premises near-

the-job; or

joint internal seminars and information

exchange off-the-job?

T he use of such methods is particularly inter-

esting for small to medium-sized enterprises

(SM Es) which need to pay attention to costs

(cf. Weimar, 1991) .

External training

Should training be organized and carried out

by external people/institutions? Because of a

lack of organizational and /or techn ical

resources, training is carried out by external

bod ies, for examp le:

when new technology is introduced, the

supplier carries out the prod uct introdu c-

tion wholly or par tly at the workplace

on-the-job;

courses are carried out at intervals by the

supp lier at his/her premises near-the-job;

employees are sent to seminars offered by

external compan ies (e.g. software semi-

nars) and these are paid for by the compa-

ny off-the-job.

T he preparation for training needs is therefore

an extremely complicated management t ask.

Many factors need to be regarded as strategic

tasks by the man agement. T he clarification

and u nderstand ing of these factors are aprerequisite for successful implementation of

training.

Secu ring success : know-how transfer at

the workplace

It could be argued that for many companies

the training process ends once the employee

has completed the actual training

programme. E nsuring that know-how trans-

fer takes place and th at the t raining is then

put into practice in a working situation is

often neglected: more probable is the

assum ption that the new knowledge can be

used somehow and sometime. T he fact that

such neglect can lead to the loss of a poten-

tial advantage is recognized rarely, bu t it is

actually this part icular part of the training

process, the transfer and subsequent u se of

know-how, that can be the key to success.

With regard to h ow training should be imple-

mented and how its success can be en sured

two questions need to be answered:

1 What impediments and difficulties can

arise for the participant when new know-

how has to be t ransferred to the workplace?

2 H ow can know-how be transferred to other

employees in the company?

With regard to the first qu estion, changes

within th e organization and the subsequent

need for n ew abilities and skills can lead to t he

developm ent of resistance to change in the

employees. T his resistance can b e structured

into three categories: personnel, organization

and technical (Staud t and M hlemeyer,

1995). It is therefore necessary, from a strate-

gic point of view, to ident ify these resistances

and, where possible, to m inimize and/or

7






5/8

remove them. Such resistance may take the

form of:

Colleagues, line managers and employees

from other departments may have reserva-

tions about the introd uction of know-how

gained by part icipants o f training courses

(for example because the colleague feels

disadvantaged, the line manager does not

possess the know-how or because more

work is created for em ployees in other

departments personnel resistance).

Organizational problems may arise through

the introdu ction of new techniques and

know-how, because the introduction of

such new methods may impact on other

processes and other d epartm ents which are

still operating under old method s, for

example networking PC s can lead tochanges in all departm ents organizational

resistance.

Technical problems can arise through the

mismatch of new knowledge and old t ech-

nology within the workplace, for example

the know-how to use new software in an

organization in which the curren t compu t-

ers do not have enou gh capacity technical

resistance.

T he second question looks at trying to achieve

the m aximum p ossible from the training. Aspart of the planning p rocess for any training

programm e, it is essential to ensure that the

individual participant(s) achieve their objec-

tives. It is, however, equally impor tant to

ensure that the know-how is then passed on to

other, relevant employees within the compa-

ny, i.e. the snowball effect. It m ay be said that

one of the consequences of direct training of

employees shou ld be the transfer of know-

how to other employees within the company.

T his indirect training also has certain require-

men ts at d ifferent levels:

The direct participant level

T he strategic task here is to identify the role

of the part icipant as a type of internal trainer,

to prepare him/her for this role and to m oti-

vate him/her, that is the par ticipant needs to

be aware of the role that he/she will play in

the transfer of know-how. T he use of group

and t eam work to integrate and facilitate the

transfer is of impor tance here. T he Meister

system in G ermany is relevant here, wherebyforemen have had to t ake on new roles within

companies and have had to be trained to

work in team s in order to act as indirect

trainers.

The indirect participant level

T he par ticipants in the snowball system of

know-how transfer also need to be included in

strategic planning. On the one hand it is vital

to tr y to minimize the possible resistance

towards the d irect p articipant as d iscussed

above and to attempt to motivate and suppor t

them through the training process (for exam-

ple, through increasing their personal skill

level, their performance and motivation in t he

workplace will be improved). On the oth er

hand , it is impor tant to match the new know-

how to the cur rent skill level of the indirect

participants in order to prevent possible

frustration and demot ivation from ar ising

incompatibility.

Company level: organizing the indirect training

measures

From the viewpoint of management, the need

to prepare the indirect training methods

should b e recognized early in the process.

T hese should be incorporated with the d irect

training methods. In particular the following

points should be considered:

Who are the participants in the indirect

training and what know-how can and

should be transferred?

Should the indirect training take place on-

the-job, near-the-job or off-the-job?Should, for example, internal workshops,

seminars, etc. be organized or is it possible

to carry out the training within the frame-

work of the workplace?

When should this training take place in

order to cause as little disruption to the

working routine as possible?

How should quality control be built into

the process in order to monitor the success

of the snowball process and to ensure that

the know-how is transferred in the correct

way to be effective for the organization?

T his must be carried out in such a way that

the trainer is not frustrated or demotivated.

Figure 3 shows the organizational tasks

involved in the intern al transfer of know-how

within a comp any.

Controlling training and developme nt

T he end of a training programme is, of

course, not the end of management involve-

ment in the training process. M anagementtasks include th e implementation of m oni-

toring and control systems. Th e control

phase of the training process should be struc-

tur ed in such a way that a post-analysis of

8






6/8

individual training measures is carried ou t.

T his shou ld take the form of an investigation

into the actual content of the training and its

success. It is also imp ort ant t hat a review of

the whole training process is comp leted as

this, togeth er with the post-analysis, gives a

template for furt her training programmes

and is, therefore, a par t of the overall cont rol

system. T he learning by mistakes principle

helps to improve on present and d esign

future training measures and to ensure th eir

effectiveness.

M easures for controlling success

T he measures used to judge the success/fail-

ure of training programmes definitely need tobe pre-d efined, that is the ob jectives of a

particular form of training need to be deter-

mined b efore the training process starts and

then, on completion, need to be reviewed in

order to m easure the discrepancy (or not) of

expected results against actual outcomes.

Only then can an evaluation of the t raining

process be made.

T his type of control can take place either at

individual or group level through:

debriefing sessions with the line manager;

written evaluation of the training

programm e, either through a questionnaire

or through a report com pleted by the

participant(s);

observations at the workplace is the

know-how actually being implemented ?;

transfer methods (Meier and Schindler,

1995).

T hrough the use of one or a combination of

these control meth ods it is possible to com-

pare achieved results with expected results

and therefore to draw up a deficit analysis.

Fu rther debriefing sessions with line m an-

agers, trainers or organizers should then

highlight the p erceived weaknesses of the

training process. T he existence of

prob lems/weaknesses within the process and

the recognition of these enable an overall

control of the training process to take place.

T he data and information which have thus

been gathered can be used then, within the

framework of a form ative control programm e

(von Landsberg and Weiss, 1992) to highlight

weaknesses in the planning and application of

current and future training programmes. If,

for example, particular problems were experi-

enced with supplier-based training, then

correct ive measures, such as discussions with

the supplier, can be un dertaken in order to

avoid futu re ineffectual training.

Controlling costs

Within the final evaluation of a training pro-

gramm e a control of those costs arising from

the training should be undertaken. These

include not on ly items such as seminar fees for

external seminars, bu t also, most impor tantly,

those costs caused by the absence of the

employee plus organizational and managerial

costs.

T he strategic management task here is to

make sure that an analysis of total costs isund ertaken not on ly to ensure that individual

training measures can be costed and con-

trolled, bu t also to ensure that the costs on a

mon thly, half-yearly or yearly basis are tran s-

parent. T his allows decisions as to the struc-

ture of futu re training programmes to be

made.

Conclusion: from m anaging tra iningand development t o managing know-

how

T he future of Western E urope as an environ-

ment for business is dependent on how far

the d isadvantages caused by cheap labour

9





Know-howdevelopmentin a company

Direct participant t raining

Know-how transfer and indirectparticipant training

Organizational support andovercoming resistance to change

Figure 3 Internal transfer: organizational tasks


7/8

coun tries can be compensated for by innova-

tion, an increase in produ ctivity and q uality

advantages. Market, legal and dem ographic

changes, but above all, technical and environ-

mental challenges require a business to

acquire and man age know-how. A business

needs to recognize how know-how as a com-

petitive factor can be organized and trans-

ferred inter nally, as well as developed within

the framework of the organization.

T he deciding factor needed to meet an

organizations future challenges is the training

and know-how of management and employ-

ees. Their knowledge and skills form the basis

for future decisions and are the strategic

factors for the continued development of the

organization. In a time where the life cycle of

know-how is decreasing constantly and theinformation required by a company is becom-

ing more and more com plex (both qu alitative-

ly and q uan titively), plus where the supply

within th e training and development m arket is

confusing, it is important to develop a system

for managing training, within which the needs

and requ irements of the company can be

analysed and appropr iate measures taken.

T his situation more often than not will also

require a continued increase in finan cial

investment.

One problem h ere is that it is difficult to

measure the cor relation between the imple-

mentation of training as described above and

the overall success of the organ ization. T he

extent to which the success of the organiza-

tion can be attributed to the use of strategical-

ly planned training is difficult to prove and

can, therefore, be d ifficult to justify. T his is

par ticularly the case when the success of the

company is measured in financial terms, as

there is little evidence to suggest that training

per secan improve the financial performance(Ashton and Felstead, 1995). T his is precisely

the reason why the planning and m anagement

of training must be pu t into the hands of

senior management, who must use their

influence to explain th e need for training, and

to support and to promote it.

In the current economic climate the

process of training and developing know-how

and its man agement can be left no longer to

fate and luck. It mu st be recognized that:

Know-how and therefore training is apotential competitive factor, which is often

company-specific and which can be

achieved on ly on a long-term basis. It is

vital to the overall success of the

organization and must be given a corre-

sponding amount of management support.

Training cannot be used as a fringe benefit,

or as a reward for management , or as a last

resort in times of employee crisis; it is

much more the case that there should be a

consensus within the organization that

training makes a vital contribution to the

development of the organization as a

whole, even if its success is difficult to

quantify.

A training programme needs to be integrat-

ed within the strategic planning of a busi-

ness and its aims; the method s of imple-

mentation and the required resources need

to be agreed within the organization.

Know-how and training should be accept-

ed as a constan t, analytical task and as a

process that, with its strengths and weak-

nesses, requires constant improvement and

updating. It is vital not only that those

employees/management involved in the

personnel or organizational areas are

involved, bu t also that all departmen ts and

employees within the organization have the

oppor tun ity to contribute to the planning

and implementation of the training

process.

References

Ashton, D. and Felstead, A. (1995), Training and develop-

men t , in Storey, J. (Ed.), Human Resource Manage-

ment: A Crit ical Text, Routledge, London.

Hofmann , L. (1992), Qualifik ationsplanung in der IBM

Deutschlan d Schlssel einer erfolgreich en Person-

alentwicklung ( Planning for qual ificat ions the

key to successful personnel development ), in von

Landsberg, G. u nd Weiss, R. (Eds), Bildungscontrol-

l ing, Schffer Poeschel, Stut tga rt.

Institut der Deutschen Wirtschaft (1994), Wirtschaftsbrief,

Vol. 47 No. 11, November.

M hlemeyer, P. (1995), Im Umw eltsektor gibt es kaum

Konzepte zur Qualifi kation fehlende Personalen-

tw icklung behinder t Entw icklungschancen ( There

are few concepts for qualifications in the environ-

mental sector a lack of personnel training hinders

development ) , Blick durch die Wirtschaft, Vol. 40

No. 2.

M eier, S. and Schindler, J. (1995), Erfolgssteuerung in der

Personalentwicklung-Transfersicherung durch

M itarbeitergesprche ( Success factors in person-

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pp. 956-8.

Scholz, C. (1991 ), Personalmanagement, Vahlen,

Mnchen.

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11





Staudt , E. (1995), Integration vo n Personal- und Organi-

zationsentwi cklung in der berufli chen Weiterbil-

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(Ed.), Handw rterbuch der Fhrung, Enzyklopdie

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