CASE 2

Summary of Cases: 

Case 2 A:

·         Fast food chain McDonald’s has introduced gaming as a part of their employee orientation and training.

·         The company experienced successful results using a till training game, that later went viral. The game saved the company half a million pounds in training costs.

·         McDonald’s is now going live with a 3D real-life replica of their restaurant, set to train managers in a new process flow of preparing food to order, instead of in advance.

·         The virtual reality gives managers the ability to make mistakes and to learn while making staffing decisions for example.

·         McDonald’s believes gaming is the way forward with training, and the article points out that it is not necessary to invest in high-cost futuristic technologies, but simple solutions are just as profitable.

·         Companies that consider using gaming as a training tool, should remember that gaming, in itself, is not a value, but it’s a tool to reach desired learning outcomes.

·         The orientation process is more engaging and leads to better results, and the recruit has fun while learning.

Challenges:

•          Companies that consider using gaming as a training tool, should remember that gaming is not a value in itself, but it’s a tool to reach desired learning outcomes.
•          Cost of building a training built on gaming vs. the potential benefits

Case 2 B:

·         Nando’s is a rapidly expanding restaurant group, that wanted to keep performing well and have a “family feel”.

·         The company has won numerous training awards in response to their well-planned training programs for staff and managers

·         Managerial training includes a couching program to infuse Nando’s values into its managers and staff.  Nando’s wants to create a fun and supportive working environment by training managers.

·         New employees go through a substantial orientation, including ten days of on-site training.

·         Teamwork and communication training is given to managers to increase cross-cultural understanding, team communication and to increase self-awareness.

·         Each restaurant has a “buddy system” in place, with two on-site buddies responsible for training of staff.

·         Nando’s has had excellent results due to their training programs, and believe in giving employer the opportunity to effect career development. This leads to decreased turnover and a much more satisfied staff.

Challenges:

•         Creating a unified family feel across the restaurant group
•         Cost of training, orientation and socialization

Key Concepts, Theory and Model

Both McDonald’s and Nando’s have seen the true potential in training its staff and managers. They make the employees part of their own career development, and the company reaches better performance levels.

McDonalds has decided to make use of new technologies, in order to make training more fun and effective. The main challenges in training, is making sure, that the training solves a particular set of problems, that the goals are clear, and that the training will work and in the future, turn out to be a cost effective investment (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 286-287). Danielle Bullen writes about companies basing their training needs and strategy based on return of investment. This is, for many companies the most important aspect – will this training pay off? She argues, that leaders of companies, should make a conscious decision on investing in training, making the workforce feel like they shouldn’t feel guilty about taking time to learn. Training your workforce, also leads to reduced turnover and a happier staff, Bullen writes. (D.Bullen, 2014).

The assessment of training needs is crucial for deciding on appropriate training techniques, location and goals. After a training, it is also important to evaluate, to make sure that the training is being implemented and that the investment was worth the cost. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 290)

Assessment of a training can be somewhat difficult. The results are not always visible right away, and the outcome can be difficult to pinpoint. Garret Engine Division uses four measurement levels to calculate the return of investment of skills training. The four measures are:

ü  Partcipants’ reaction to training at the time of training

ü  Participants’ learning of the content

ü  Participants’ use of the skills back on the job

ü  Companys’ return of investment

One fairly easy meter to measure effect of training, is to measure performance levels and the time it takes to complete a task before and after the training. This gives an estimate of saved time, which can be calculated into hourly costs and profit increase. (L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 290)

McDonalds, for example, found that using an online game training for the use of a new till, saved the company approximately half a million pounds in direct training costs.

The role of HRM is key in making sure that the training produced the wanted results. If the training is in-house, one can increase the effects by planning the training carefully and measuring the return of investment. Sam Test Cauthen explains how this can be done in her article on the E-Learning Industry website. She argues for staring the measurement prior to the training, by asking questions of the trainees, and making their worries, concerns and wishes part of the training. During the training, one should use interactive solutions, to measure not only the number of participants, but those that are taking active part in the training. Ask the participants for feedback, that similarly measures the understanding of the training that they have just received. At the same time, ask the participants to make a commitment to the training, have them promise to incorporate it in a specific situation, where they can see it to be useful. And lastly, Cauthen suggests, reminding and reinforcing the training after the session by sending feedback, graphs, tips etc. to once again engage the trainees. (S. Cauthen, 2016)

There is a difference between training and development that is often overlooked. Below, I have presented the difference between the two.

Training:                                                   Development: 

Specific skills                                            For the future

Short term                                                 More capable workers

Increased performance                              People = Resources 

(L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 286)

As the career life changes from being a set career in one organization, into multiple careers in different positions, it is increasingly important for employers to keep a hold on the above-average employees. As recruitment is costly, and risky, making sure that a capable and productive employee stays with the company is one key aspect of a company’s success.

Therefore, career development is no longer only an issue of the employee, but one of both the employee and the employer. Identifying needs, wants and wishes of an employer can be a fruitful effort for both parties.

Career Development often starts with self-assessment and organizational assessment, where feedback is given and possible aspirations voiced. After the wishes and aspirations have been determined, a path to achieve those goals is made. Once a clear path is laid out, the development phase follows, where the employee gains the needed experience and skills to prepare for future job opportunities.  This development phase can include taking courses, attaining mentoring, coaching, job rotation etc. ((L. Gomez-Mejia, D. Balkin, R. Cardy, 2012, p. 317-327)

Often the responsibility of career development is largely put on the employee’s shoulders. One is required to develop oneself and ask for training to pursue a higher position in a company. Therefore, a lot of the HRM material on the web and elsewhere is directed towards the worker, not the employer. Although self-improvement is an important part of it, equally important for the employer to see the value in its employees, and to hear their thoughts and wishes, in order to ensure that good hires stay within the company. (M. Gomez, 2014)

Harvard Business Review encourages employees to take control of their own career development by using the following steps. 1. Set aside group time for introspection, 2. Set clear goals and identify skills needed to attain those goals, 3. Invest in deep work, that do not give immediate response, but create value in the long term, 4. Create an external reputation. (D. Clark, 2016).

Nando’s has taken a long-term approach, and is training their staff and making sure their career goals are considered. Nando’s is looking for the employees to take control of their own career development, and is making sure that they stay within the company by giving them the needed tools to develop themselves. The training coordinator at Nando’s, Claire Hulse, explains that the company’s ten-day on-site orientation training is a great stepping stone in their development within the company.

Nando’s Buddy system is also a well-functioning example of career development that is a great investment. The company has trained over 250 buddies, and 80 % of managers used to be former buddies. Introducing the Buddy system has reduced training costs, increased profit and performance, inspired employees to further their talents, and to be part of the company’s growth.

News Articles related to training and career development 

“DNC Chair candidates: Recruitment and training works”

The Democratic National Committee, is facing a position of minority on all political fronts and is considering long-term career Development by recruiting and training new members to run for Congress. The author, is worried the Democratic Party is not doing enough, to ensure a vital political future of the Democrats. Especially recruiting and training woman into pursuing a political career could serve the party in the future. The article is looking into career development from a “company’s” point of view. Just as political parties are training future politicans, so should companies train future managers, sales personnel and CEO’s.

http://thehill.com/blogs/congress-blog/politics/315098-dnc-chair-candidates-recruitment-and-training-works (24.1.2017)

“New Career Management for Small Business Playbook helps to retain and develop talent”

The Canadian Education and Research Institute for Counselling launched a new publication, that helps small- and medium sized businesses with their career planning and management. Many entrepreneurs were worried about the lack of career management, and felt employees potential wasn’t utilized to the fullest. The publication gives tips and advice for entrepreneurs to start managing the careers of the employees. It is written in a travel-guide type of way, helping the businesses find the right paths and solutions that work best for their needs. The Canadian Chamber of Commerce supported the publication and it has received positive reviews.

http://www.newswire.ca/news-releases/new-career-management-for-small-business-playbook-helps-to-retain-and-develop-talent-611509035.html (24.1.2017)

Litterature: 

D.Bullen, 2014, “How Top Companies Make the ROI Case for Employee Training”, Skilledup,

http://www.skilledup.com/insights/how-top-companies-make-the-roi-case-for-employee-training (24.1.2017)

D.Clark, 2016, “Think Strategically About Your Career Development”, Harvard Business Review, https://hbr.org/2016/12/think-strategically-about-your-career-development (24.1.2017)

L.R Gomez-Mejia, D.B Balkin, R.L Cardy, 2012, “Managing Human Resources”, 7^th Edition, chapter 5 and 3. Pearson Education Inc. New Jersey

M. Gomez, 2014, “How Career Development Programs Support Employee Retention”, Association for Talent Development,  https://www.td.org/Publications/Blogs/Career-Development-Blog/2014/10/How-Career-Development-Programs-Support-Employee-Retention (24.1.2017)

S. Cauthen, 2016, “How To Measure The ROI Of Training: A Pragmatic Approach”, E-Learning Industry, https://elearningindustry.com/5-concrete-ways-measure-roi-of-training (24.1.2017)