In an attempt to justify the workability and effectiveness
of a proposed training plan, this paper presents the 1)
strategic goals of the company, 2) intrinsic value and
purpose of conducting a Training Needs Analysis (TNA)
and the steps of this process, 3) assumptions made in
the design of the training plan, 4) core features of the
proposed training plan, and 5) the problems and challenges
of implementing the proposal.
Strategic goals of NHC
The primary strategic goal of NHC is to become a 20 Billion
Dollar foods and herbal company by 2015.
To achieve this, the following key business strategies
were adopted:
1. Enhancing product quality
2. Widening the lead in key customers
3. Strengthening distribution system in all market levels
(local and international)
4. Leveraging customer marketing practice and enhancing
market recognition
5. Improving pricing policies and schemes
Concomitant to these business strategies are institutional
requirements directed towards human resources and operations
management. It should be noted that these business and
organizational directions are inherently related to the
organizational problem identified previously, i.e. aggressive
competition in pricing and customer satisfaction levels.
The challenge could very well be, albeit partially, addressed
by a comprehensive training program. This important activity
should start with a proper training needs analysis.
Nature and importance of Training Needs Analysis
Training Needs Analysis is a process commonly carried
out by human resource departments to identify performance
areas, skills and programs within an organization where
training and development are needed in order to help direct
resources that most closely relate to fulfilling the organizational
goals and objectives, improving productivity and providing
quality products and services (Kauffman, 1987). Simply,
TNA examines the existing need for training within an
organization (Mitchell, 1993), and specifically, aims
to solve organizational problems on knowledge and skills
of employees. It is the first step in the organization’s
training process to achieve clearly defined objectives.
For the human resource manager, the TNA maximized the
benefits of the training process and prevents undue waste
of organizational resources. Despite time pressures, a
human resource manager should never skip the conduct of
a proper TNA because it will lead to problems in the long
run (Smith & Delahaye, 1983). TNA ensures that a training
program is the right solution to an identified problem
before the program is implemented and also guarantees
that priority needs are not overlooked and that non-essentials
are relegated. In effect, TNA is a response to the need
for cost-effective solutions and higher positive returns
on investments made on training programs. This captures
the primordial importance of TNA in these times of global
economic meltdown and amidst the imperatives of globalization
and competitiveness to which the workplace and organizational
goals should continually adjust.
Additionally, conducting a TNA only enhance the company’s
progress towards investment in its human resources as
it provides an authentic framework for improving and appraising
performance (Mager & Pipe, 1984).
The TNA process goes through the following steps:
1. Identification of problem needs – evaluate the circumstance
for training request (for the purposes of this paper,
the challenges of aggressive competition in terms of pricing
and customer satisfaction levels); examine skill and knowledge
gap; and identify training objectives
2. Designing the TNA – set need selection criteria, identify
appropriate analytical and research methods.
3. Collection of data – this will be explained in succeeding
paragraphs
4. Data Analysis – use a variety of qualitative and quantitative
analytical approaches to identify recommendations and
proposed solutions.
5. Providing feedback – present a report of findings and
determine if training is needed.
6. Developing the training plan using the results of the
TNA (Rae, 1992).
The list below summarizes the principles (do’s and don’ts)
of TNA.
DO
ü Take TNA as seriously as you do the delivery of
training.
ü Make every effort to evaluate and compare your
findings with those of others.
ü If necessary, work to persuade others of the benefits
of collecting and collating data on training needs.
ü Remember to consider potential needs at the all
organizational levels.
ü Scrutinize problems carefully, so as to avoid making
false assumptions.
ü Include yourself as someone with potential training
needs.
DON’T
× Arrange any training without first establishing
that there is a clear need for it.
× Simply send everyone on the same training event
that you found useful and enjoyable because individuals
have different backgrounds and experiences, so they have
unique training priorities.
× Concentrate on obvious training needs at the expense
of those you need to look for. (Smith & Delahaye,
1983; Bartram & Gibson, 1994; Boydell & Leary,
1996).
The rigor of TNA requires an enormous volume of relevant
information which could be sourced from the following:
1. Organizational vision-mission and strategic plans
2. Staffing and skills inventory, job descriptions and
performance standards
3. Organizational reports on indices of organizational
climate
4. Performance ratings
5. Corporate efficiency indices (labor costs, supply chain
management, product quality, etc.)
6. Annual reports
7. Existing development plans
To supplement these data, the training specialist could
conduct interviews and focus groups, instigate job observation
and evaluation, gather data through questionnaires, and
research best practices of competing companies (Zemke
& Kramlinger, 1982).
Assumptions
This report assumes that the TNA has been conducted and
led to three targets: the company as a whole, a particular
activity that requires special skills, knowledge and values,
and the employee as an individual. One key assumption
is that the organizational training needs presented here
were sifted to align with the strategic business strategies
of NHC, with particular emphasis on how to improve knowledge
and skills of employees on the principles of customer
value management in terms of pricing strategies and increasing
customer satisfaction. Objectives under each strategy
were formulated based on the principles of strategic and
competitive management (Porter, 1985; Aaker, 2008).
This paper assumes that there are knowledge and skill
gaps that training should address. These are inherent
in the recommended activities for each key business strategy.
1. Enhancing product quality
a. strengthening the research and product development
unit,
b. sustaining technological and operational imperatives
in compliance with product standards, and
c. enhancing production and operational processes.
2. Widening the lead in key customers:
a. development of new and effective business solutions
to key customers by applying shopper marketing insights
and information gained from joint business planning with
customers,
b. conduct of customer value analysis and creation of
customer-focused teams for strategic customers,
c. enhancing company servicing characteristics (customer
care, quote response times, availability and responsiveness
of inside sales, and effective complaint management),
d. improvement of store level operational skills and capabilities,
e. improvement of loyalty marketing programs to retain
current customer base and attract more business partners,
f. improving product packaging and creating relevance
building propositions, and
g. harnessing the corporate social responsibility portfolio
of the company with emphasis on environmental projects
and health benefits.
3. Improving and strengthening distribution system in
various levels
a. enhancing trade and market presence not only for corporate
customers but also for small-to-medium traders,
b. adoption of micro-marketing approaches and support
different campaigns across different geographies for specific
herbal and food products,
c. implementing an aggressive distributive trade strategy
to maximize reach and strengthen the availability and
visibility of NHC products, and
d. conduct of product monitoring.
4. Leveraging customer marketing practice
a. harmonizing marketing processes among different units
to optimize trade investments and achieve favorable ROI,
and
b. improving advertising campaigns and marketing strategies,
and
c. conduct of massive best in class sampling activities.
5. Improving pricing policy and schemes
a. conduct of price/value analysis;
b. adjustment within elasticity for core NHC products,
c. narrowing gap index between product variants, and
d. parity pricing with competing products for brand promotion
and profitability
The training plan
Based from the above theories and assumptions of knowledge
and skill gaps and upon consultation with NHC management
on prioritization of training activities and implementation,
the following training plan is proposed. Though it is
not specified in the strategic objectives, it is contended
that any training plan should start with a proper orientation
on the vision-mission and objectives of an organization,
guidelines and policies because a sense of ownership intensifies
commitment and loyalty. To serve as guideposts to the
HRD, success indicators are also presented although not
exhaustive.
Knowledge/Skill Gap or Training Objective Prescribed Activities
Timeframe Persons/Units
Responsible Success Indicators
Orientation on organizational vision-mission and objectives
-instructional media presentation; -pep talks-sitting
on interviews of applicants as necessary (for existing
employees) May, 2009 (a total of 48 hours for new hires
and 8 hours for existing personnel)-2 hours for each employee
- HRD- company executives -Employees exhibit understanding
and appreciation of NHC mission-vision and objectives;
-Keen understanding of company policies-Guidelines and
policies are being followed-Higher job satisfaction
Research skills - send key research personnel to a reputable
university for further education in product development-one-on-one
mentoring (skilled researcher teaching unskilled personnel)-lectures
on best practices and product standards 2010-2012Starting
June, 2009 - a total of 150 hours for each employee8 hours
for all employees of the unit -Research Department-Product
development consultant to be approved by the unit head
- Efficiency in undertaking research protocols- Improved
product development approaches-compliance with quality
control standards
Machine operation and work processes - modelling; actual
job observation and demonstration-simulated exercises-applied
practice For new hires, a total of 150 hours -Production
Department-Unit Supervisors - reduced wastage and errors-more
efficient production flow
Gathering marketing insights - hands-on training on basic
principles and skills-scenario-building- visits to outlets,
stores and display areas Starting June 2009 (a total of
150 hours) -Marketing Department -adoption of a practicable
joint business planning venture with identified customer
groups-ability to implement short- and long-term marketing
strategies
Favorable servicing characteristics - lectures-drills;
applied practice -simulation and modelling- hands-on training
Starting June 2009 (a total of 150 hours) -Customer Service
Department -less customer complaints-speedier response
times-retention of loyal customers-better performance
on a customer survey
Store level operational skills -drills-hands-on training
and lectures Starting July, 2009 (a total of 150 hours)
Employees in both NHC major and minor branches -increased
sales
Implementing a viable loyalty program -planning workshops-study
of best practices Starting July, 2009 (a total of 80 hours)
-Sales Team-Marketing Team-Customer-focused Groups -retention
of 95% of existing clients
Product packaging -lectures and workshops-study of best
practices-self-study approach Starting August, 2009 (a
total of 150 hours) -Research Team-Product development
staff-Production Department -improved packaging- relevance
building propositions for key products as well as low-performing
ones-increased sales
Corporate social responsibility policy -lectures on corporate
social responsibility imperatives-planning workshops Starting
September 2009 (a total of 60 hours) -ManagementAll employees-External
consultant -strengthened corporate social responsibility
portfolio-more liaisons and partnerships with stakeholders
and the community- recognition for socially sustainable
achievements
Micro-marketing strategies -workshops-job aids-self-study
Starting September 2009 (a total of 200 hours) -Marketing
Department -enhanced trade and market presence-more sales
contracts-increased visibility in previously neglected
geographical areas
Product monitoring -workshops-visits to shops and outlets
Starting June 2009 (this will be periodic, once a month)
Sales DepartmentMarketing Department -regular updates
and reports on product performance
Advertising skills -workshops-skill demo-e-learning-attendance
in local and international conferences on advertising
Starting June 2009 (a total of 200 hours) Advertising
Department -more and better outputs (samples of advertisements)-increased
visibility in all forms of media-recognition for advertising
achievements
Pricing schemes -further training and education in price
analysis-consultant-led in-house workshops and lectures
on price monitoring and adjustments-self-study-visits
to stores and outlets Starting July 2009(a total of 200
hours) ManagementCorporate SalesExternal consultant -pricing
parity or narrowed price gap compared to competitors-improved
sales
This
prototype relies on the development of course materials
and training guides that shall undergo tabletop review
as well as pilot-testing.
Conclusion: Problems and challenges
Just as the actual training program, the TNA process also
entails company resources in terms of time and energy
to effectuate systematic planning and analysis and to
ensure coordination among organizational units and the
full involvement of those who need the training. The suggested
training plan above is of course subject to availability
of funds and the final approval of NHC management.
As in any program implementation activity, the human resource
manager may find difficulty in convincing or “selling”
management that the training plan is a timely and effective
response to the perceived organizational problem, i.e.,
improving customer satisfaction and enhancing pricing
policies. To address this threat, the sustained involvement
of NHC management in all the phases should be ensured
so that they will find it easy to delineate cause and
effect between perceived training needs and organizational
problems. Another threat would be situations of transition
management or change of ownership. This will entail another
round of “persuasion”. Revisiting the needs assessment
process would also be necessary if senior leadership would
decide to launch another priority initiative
In cases of job transfers or promotion, the revision of
the training plan would be directed only on the identification
of the target employees. Concomitant to active participation
is that the enthusiasm of the trainee should match the
enthusiasm of the human resource manager. To this end,
their involvement in planning and analysis should be solicited.
The proposed training plan is not exhaustive but is a
judicious attempt to address the essential needs for training
as revealed in the TNA. Although some activities could
be postponed, they should not however be totally cancelled.
The proposed pilot testing would reveal areas for further
improvement.
In conclusion, human resource managers should be reminded
that good training doesn’t just happen. It is the result
of much preparation and forethought. This is made possible
through a proper training needs analysis. Whether or not
the objectives of the program were achieved should also
be assessed. Integral to the training program is an evaluation
phase that should focus on response of the trainees, degree
of learning, behavioral outcomes, and overall impact on
the company’s business goals. However, this is a subject
that could be enunciated in another discourse.
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