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CHAPTER: 9 HUMAN RESOURCES DEVELOPMENT (HRD)
CASE STUDYA MATTER OF COSTS
NAME STUDENT ID
Epeli Ravula S96007701
Ropate Veremalua S98001709
Miliana Vulakouvaki
S99001396
Ruci Nadavolana S96001515
Catherine Grey S98000347
Elenoa Lalabalavu S02001219
Marica Naulu S99006318
Presentation Outline
Brief on the Case Study• Global Industries Organization structure• Facts on the Case
QUESTIONS1.Identify the major stakeholders involved.
What will their likely views be?2.Is training a ‘luxury’ that cannot be
afforded in times of economic downturn?3.What are the arguments for and against
outsourcing training and development activities?
4.If you were Karen, what would you do?
Organization StructureGlobal Industries
President Rachel Razak
CFO Andrew LamVP/HR Karen
Saunders
Facts of the case • Sales ↓40%• 1st loss in 25yrs• Need to cut back on
expenses• Wants HR budget to
be justified in financial termsRachel (President)
• Views the HR budget as “unrealistic”
• Current training program does not add value to the business
• Recommends that HRD dept be abolished, or its existence be justified
• All Training programs to be cancelled, unless HR can show “direct payback”.
Andrew (CFO)
• Claims to understand the situation
• Adjusted budgeted expenses by 15% ↓
• Stresses the importance of HRD dept (understaffed)
• Current training programs are successful and popular
• Not all programs should have monetary returns.
Karen (VP/HR)
1. Identify the major stakeholders involved?
Stakeholders – Any individual group or organisation that is affected by or has a vested interest in organisation policies and decision
1. MANAGERS Karen Saunders – Vice President,
Human Resources Rachel Razak – President , Global
Industries Andrew Lam – Chief Finance Office
(CFO)
2. EMPLOYEES
1. Identify the major stakeholders involved?
They will have different views altogether.
1. MANAGERS Rachel Razak – President, Global Industries
Supports CFO’s recommendations May support Karen if cost is justified Need to cut back on expenses Wants budget to be justified in financial terms
Karen Saunders – Vice President, Human Resources Stresses the importance of HRD dept. (understaffed) Current training programs are extremely popular with all the
participants (employee satisfaction) Not all programs should have monetary returns.
Andrew Lam – Chief Finance Office (CFO) Abolish the HRD department and get rid of all the people
[HRD Manager, Graduate Trainee & Secretary] Outsource any training needed.
What will their likely views be?
Forget about growing internal talent in this difficult time
Headhunt the best from the competitors Cancel the recommended training programs:
- Since they don’t add value; - Employees are not doing their jobs better; - They are not making company money
2. EMPLOYEESJob security for the HRD department staffWorking conditionJob satisfaction Opportunities for advancement Fair treatment
What will their likely views be?
2. Is training a “luxury” that cannot be afforded in time of economic downturn?NO
Systematic Training & Development Model
REASONS: It helps maintain overall performance, keeping the company
competitive. However, training should be positioned to either support
employees in generating revenue for the company or help to lower costs.
Should be linked to SBO of the company, with a clear assessed return to give purpose to the training program and justify its existence.
It needs to be tied back to the company goals and objectives, both short-term and long-term.
Good training that is objective and performance-based will empower employees to perform to expectations, supporting defined business goals and objectives.
In competitive markets, training is a matter of survival when there are gaps in skills and capabilities there is an immediate increase in ineffectiveness and money is lost.
2. Is training a “luxury” that cannot be afforded in time of
economic downturn?
3.What are the arguments for and against outsourcing training and development activities?
OUTSOURCING TRAINING & DEVELOPMENT ACTIVTIES
FOR AGAINST
Focused on other core HR activities
Loss of essential HRD personnel's
Quality of training and development provided
Reduced services provided since it will be based on cost charged
Access to improve training & development technology
Security of Employee data; Excessive cost
Lose out on HRD tools like the implementation of policy and strategy; the effecting organisational change and culture
4. If you were Karen, what would you do?
Firstly in order to justify training and development program, I will have to show how they contribute to the achievement of Organisations Objective.
Strategically HRD can be a platform for organisational transformation being a powerful tool:Meeting a major change in the external
environment (40% loss of sale)Implementing strategyImplementing new policyEffecting organisational changeSolving particular problems
4. If you were Karen, what would you do?
Assessment of training needs for those proposed training programs (this answers What, When and Where)-organisation variables (environmental influences, objectives, organisation culture, measures of (sales, production, costs, safety))-task variables (job analysis, job description)-person variables (job specification, appraisal, customer feedback, sales and production, safety records)
Evaluation of the training programs – may draw from past programs (this answers ‘Why’)
To show the effectiveness of training through evaluation on measure of: Reaction Learning Behaviour Results
s
4. If you were Karen, what would you do? Cont’d
Measure Indicators How Measured
Reaction SatisfactionEnjoyment
QuestionnaireInterviewFocus groups
Learning Knowledge (eg.OHS regulations, EEO)Skill (computer or machine operation)
Pencil and paper testOral examinationWork sampleObservation of performancePerformance rating
Behaviour Changes in attitudes , behaviour, motivation
Observation of performancePerformance ratingThird party feedback
Results ProductivitySalesQualityAbsenteeismLabour turnoverAccident frequency
Production StatisticsSales StatisticsHR StatisticsOHS Statistics
THANK YOU