1. Intensive Course Human Resources Development Management Training & Development Training Need Analysis, Design & Budgeting Volume 2 Delivered byDr.Ir.J.F.X.Susanto.S.MBA.,MM

2. 2 Contents 1.Training Wheel 2.Excerpts on BTNI 3.Organizational Triggers 4.Bibliography

3. 3 Training Wheel in Training Needs Analysis and Evaluation by Frances and Roland Bee

4. 4 Excerpts on Business Training Needs Identification

5. 5 Excerpts and its adaptation for the Aditya Birla Group drawn from Training Needs Analysis – Sharon Bartram and Brenda Gibson

6. 6 Types of Training Needs Training needs fall into two basic categories: 1.Training needs of the organization 2.Training needs of individual employees

7. 7 The training needs of the organization have to do with the requirements to meet the organization's objectives. For example, a new employee orientation program is something the unit / company wants all new employees to attend. It meets an organizational need of ensuring all employees have similar and correct information about the organization, its policies, and its benefits. The unique skills required for jobs within a company are organizational training needs. For example, providing new employees in a job with the ability to work with the unit’s PC- based ERP system is an organizational training need. It is a specialized ability—unique to the job—that typical new employees cannot be assumed to have learned elsewhere. However, the basic skills required of an individual employee (not all employees) in a job are not usually classified as organizational training needs.

8. 8 Training Needs of the Organization Organizational training needs can be broadly classified into two general categories: –Recognized training needs –Requested training needs

9. 9 Recognized Training Needs These are the needs identified as required by all of the organization's employees. Sometimes they are called planned training needs since the organization knows that all employees have them, and plans can be made in advance for fulfilling these needs.

10. 10 They include such things as: The need to know the organization, its structure, policies, procedures, and benefits. The need to know a department, its policies, rules, operating procedures, and personnel. The need to have specific job skills and knowledge not generally possessed by most new employees in their jobs.

11. 11 The Need to Know the Organization, Its Structure, Policies, Procedures, and Benefits Most new employees require basic information about their new employer, the structure of the organization, its policies, procedures, and conditions of employment (benefits, general rules, etc.). Most units already have an individual or group orientation training program that supplies this during the first few days of employment. These days most benchmarked companies have divided the orientation program into several parts. Each part is conducted at the time the employee has the greatest need of its information.

12. 12 The need to know a department, its policies, and personnel These needs are similar to those of new employees; only here the concern is with the individual department’s requirements and working conditions. They represent what is required to be known by all employees in a department (rules, operating procedures, schedules, team members). The sources of information usually are— the supervisors and managers of a department, existing employees etc.

13. 13 The need to learn specific job requirements not generally known by most employees These are training needs required for specific jobs, and they are needs that the majority, if not all, new employees in those jobs (hired, promoted, and transferred) will probably possess. They are the activities and responsibilities unique to a job. For example, most cement sales companies have customized selling systems. While experience at another sales company assists a new employee, but all new employees to Grasim Cement Marketing would need to be trained in Grasim’s selling systems and procedures.

14. 14 Requested Training Needs These are needs that are not planned. They result from activities : –Department performance –Operational and job changes –Employee and unit’s work culture and morale. –They are brought to the attention of the organization when they occur rather than being early identified.

15. 15 Typically, they are brought to training dept.'s attention by such activities as: Changes in jobs and/or systems Addition of new equipment/ new processes Departmental performance reviews New and revised government/ statutory requirements OHS, customer satisfaction surveys, organizational studies, department meetings, and focus groups Exit interviews conducted with departing employees

16. 16 Changes in Jobs and / or Systems These are changes made to current methods of operation. They are usually initiated by the organization, and they almost always require some degree of retraining. Here you generally have to look to the people initiating the change for information on what training is required. Many times you will have to conduct studies with existing employees to determine what training they require in order to fulfill the changed jobs or systems. Addition of New Equipment / Processes This is basically the same as a change in systems or jobs. The difference here is that a new piece of physical equipment or e.g. an ERP system being added.

17. 17 Changes in Jobs and / or Systems Departmental Performance If a department’s performance is not meeting its established standards or objectives, there can be a number of factors responsible. The department may have a high percentage of new employees. Its employees may need either retraining or training on changes that were not recognized. Employees may not be operating in the most efficient fashion, or the problem may not be solvable by training. Other factors may be causing the problem—other factors that training cannot correct. For example, the performance standards for the department may have been improperly increased or external economic factors may be reducing product demand that affects department performance.

18. 18 Changes in Jobs and / or Systems Government Requirements Revised or new government rules and regulations can require employee training. For example, introduction of VAT etc. will lead to many employers having to conduct training in the administration of the act's requirements and compliance by operating personnel with the act's regulations. OHS, customer satisfaction surveys, organizational studies, department meetings, and focus groups Activities conducted for other purposes may also identify training needs, even though that is not their primary purpose.

19. 19 Our OHS studies Every two years throw up areas like customer orientation, management of young talent etc, as areas which may lend themselves to training. Organizational studies may recommend restructuring of the entire organization or an individual department. Such restructuring often requires retraining of existing employees to meet new requirements. Other times organizational studies uncover problems with the current structure that can be solved through training.

20. 20 Our OHS studies Department meetings and focus groups called for other than the identification of training needs can still uncover such needs. For example, a meeting to introduce a new process may discover training is required to make the change work. It is important that all employees be aware that when such needs are discovered through activities of this type that they be brought to the attention of the training department. Then a formal investigation can be conducted to identify the specifics of the need.

21. 21 There always are a few triggers for Organizational training needs. Some of them are given in Exhibit 1 below

22. 22 Organizational Triggers for Training needs What is happening in your organization that might be a trigger for training needs analysis? Potential Triggers include Taking on new people Internal promotions or transfers New procedures & systems New standards New structures and relationships New products New customer New equipment Appraisals Request from: your manager, senior managers, individuals Review of previous training plans Involvement in initiatives such as ISO, OHS implementation Diversification into new markets Downsizing Commitment to training for specific employees, eg. Graduates Succession planning activities Feedback from training events

23. 23 Are there any negative indicators in your organization that might be additional triggers? Negative indicators include – Customer complaints Accident records Increasing numbers of grievance and/or disciplinary situations High turnover of new recruits Loss of customers Increasing turnover of experienced employees Disputes Standards of work not being achieved Increase in waste / rejects / errors Higher incidence of sickness and absence Decreases in productivity / output Low response rates to internal job vacancies

24. 24 What external influences are there on your organization that might be further triggers? External indicators include – New legislation Changes in legislation Customer requirements Competitor activity Supplier activity Professional body regulations / requirements

25. 25 Who is likely to be affected by each of these triggers The people at the top? Senior managers of functions? Departmental managers? Section managers, supervisors? Other grades, for example clerical, operational?

26. 26 Where can you find information about these triggers? For example – Training records Personnel records Health and safety audits Sales figures M I S reports Appraisal documentation Direct from customers Industry / sector journals Industry / sector conferences and exhibitions Other trainers in similar organizations

27. 27 How can you find information about these triggers? For example – Research reports, records and statistics Examine the current situation, spend time in departments / sections to become familiar with the workflow and observe how people do their jobs Attend management meetings / briefings Arrange individual discussions with people at all levels

28. 28 Translating Training needs into action To help ensure that training needs are met as efficiently as possible, you should conduct annual training needs identification for the coming year. These are then forwarded to the training dept. (or Gyanodaya ) who would prioritize the needs and schedule programs to meet these needs. You should complete your training needs Identification along with or before the annual appraisal.

29. 29 The prime responsibility of ensuring that there is a return on investments in training therefore lies with the manager and his direct report. The training needs for GM’s and above in the Aditya Birla Group is met from 3 sources – programs at Gyanodaya, programs at the Units and External programs. Important

30. 30 Gyanodaya seeks inputs from 3 sources before finalizing the annual training calendar – First from the BMC Directors, Business Heads & Unit Heads, Second from the inputs received from the Unit HR (MPDP) and Third by a skill validation questionnaire filled up by the participants at Gyanodaya. Identifying and Reporting Training Requirements

31. 31 The output of the training needs Identification exercise goes in to fill the Development Plan on page 8 of the MPDP form. As explained above, the training needs of about 800 GM’s and above in the Group are compiled at Gyanodaya, these are then converted to "priorities" for training to be funded. Obviously, all training is not funded every year because of budgetary limitations or physical limitations of centralized facilities.

32. 32 Therefore, it becomes incumbent upon you as a manager to keep accurate records of: Your overall training requirements reported and forecast for the future; Which of your direct reports have received requested training, and when; Which personnel still require or are eligible for training; The impact, on the manpower requirements in your office, of all of the requested training;

33. 33 What changes in training requirements are likely to arise in the coming year? As a Manager You must make sure that you can afford to have employees absent for training off-the-job considering other training, operational schedules, scheduled leave, and other manpower fluctuations. You must ensure that the training needs of your direct reports are met from any of the 3 sources ( Gyanodaya, Unit training or External Training ) In summation, efforts in training needs identification will help us ‘do the right things’.

34. 34 Bibliography Training Needs Analysis and Evaluation – Frances and Roland Bee (Institute of Personnel Management, UK) Training Needs Analysis – Sharon Bartram and Brenda Gibson (Gower) How to Identify your organizations Training Needs : a practical guide to needs analysis – John H McConnell (AMACOM)