Case study a matter of costs (final)

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