Is there a connection between a high level of commitment to training and development of employees
This paper will discuss training issues within the UK, and what organisations and the government are doing to address a skill shortage. The labour force in competitor countries is educated to higher levels than those in the UK, and that higher education qualifications will ever more be in demand to address future skills needs, particularly at the technical, associate professional and customer service level (M. Doyle 2003).
This skills shortage is being addressed by the government by encouraging individuals and organisations to take more interest in training. There are many organisations within the UK that have very good policies on training, the question is does training employees equate on the bottom line.
The government has introduced several policies aimed at tackling the skills shortage. D Blunkitt (2000) discussed. “that our education reforms are all about the development of an educated citizenry democracy in which people are educated in and are able to participate in active self-government. Individuals that are knowledgeable are equipped to make moral judgements, and will be able to construct solutions to the challenges they face, both locally and globally”(Blunkett, 2000, p. 13).
This has shifted the emphasis from organisations training employees to individuals taking more responsibility for their own training. The skills are then transferable between organisations, aiding to the mobility of the individual. But organisations still require employees ‘to be trained in their culture and core values.
Organisations seek the competitive edge of rivals; they use training to increase the level of service they offer customers. This in turn will create loyalty with their customers, therefore increasing turnover. The human resource is discussed as the most valuable, and perhaps the last edge organisations can have. If all organisations trained to the same level, would this then eliminate the competitive edge?
Organisations are implementing strategic HR as a change agent, not to replace an out dated personnel department. Although there is still evidence within the UK that once these interventions are implemented, they just replace the role of the personnel department. To be effective belongs on the board of an organisation.
The organisation that will be reviewed is Tesco’s; during the past decade they have introduced strategic HR with increased training of employees. The role of HR within the organisation has increased in importance. Their practice of training and the importance of HR will be reviewed with the current theory.
Tesco’s’ operates in a very competitive market; the consumer has choice where to shop for their groceries. They have expanded their portfolio to include CD’s, DVD’s, electrical goods and clothing. Recently they have expanded into the financial services offering customers products from Credit cards to insurance. All their products are available on the internet 24 hours a day.
Their slogan “every little helps” is used to show their commitment to customers, this has been used to reduce prices and to increase the level of customer service. This slogan is now used in their staff training, that any intervention will increase the knowledge of the workforce.
The organisation is widely reported in newspapers, this is due to the success of the business. They are rapidly expanding in the UK with the opening of their Metro stores and into new and foreign markets. This has taken a great deal of their resources in the planning and implementing stage of expansion. The core units need to remain focused, to retain the reputation they have built. Reinforcing the culture and values through training will focus employees on their roles.
Whilst writing this paper it was identified that further paper could be written on cost analyses of the organisation, to identify if the extra resources they have placed on training has been value for money. This was outside the scope of this paper.
This chapter discusses the research methods used for the project and the justification for the choice of methods. It discusses methods that were not used, with justification of why they were not included. Included is a critique of methods selected, and with hindsight this identifies any changes that would have enhanced the research.
This paper critically evaluates training within the UK and focuses on the training issues within Tesco. It will compare the HR and training practices at Tesco to the theory. The organisation was chosen as they had put themselves to forefront of training a decade ago, by becoming investors in people.
Selection of the topic was stimulated and formed out of heightened political awareness on the subject area. The government has recognised skills gap between the UK and competitor countries. To address this issue they have introduced policies that included lifelong learning. The government’s green and white papers were used to review these policies.
The nature of the research was discussed with colleagues and fellow students, this not only added practical ideas and suggestions; it also opened new avenues of thought. This was the discussed with lecturers sounding out ideas, gauging opinions and clarifying the question. Focusing in on the question was obtained by employing relevance trees, narrowing the research area. This gave direction to the research, although with reviewing the literature this direction changed several times (Buzan, J. 1995).
Next, a research proposal was compiled, with the benefit of organising ideas and setting a time-scale for research. Theoretically, the proposal would highlight any difficulties with the research question and access to data. Creating a time-scale would focus on targets and meet deadlines in the completion of the paper.
The literature review, discussing theories and ideas that exist on the topic formed the foundation of the paper. The findings from the research are then tested on theories for validity (Saunders, M. et al1997). The literature review was challenging, there is a vast amount of articles on the subject. Books journals and newspaper articles formed the back bone for the review.
Tertiary data sources, such as library catalogues and indexes were used to scan for secondary data. This produced journals and newspaper articles, and Internet addresses. With the amount of literature, it took time to sort out relevant material to the research. Narrowing down the search Bell’s (1993) six point’s parameters was applied. Applying key words that were identified in the first search produced relevant and up-to-date material (Bell, J.1993). A limitation on the literature search was the amount of time to read all articles and books on the subject. Whilst reviewing the literature references to other relevant publications was followed and reviewed. Bells checklist on identifying the relevance of literature found was a practical method to reduce the amount of reading (Bell, J. 1993).
The Case study material was compiled from the organisations web site and from articles that discussed their training policy. Tesco’s appear to be rarely out of the papers, with daily reports on their success. The organisation disseminates a lot of information on their web page, only relevant material was chosen.
To produce primary data on organisations training proved to be a vast task, taking a lot of time to produce results. Instead it was decide to review previously published interviews and surveys. This was then compared to the literature review. Interviewing people within organisations was an option for primary research. The target of the interview would be the person that held enough power to influence decisions that the organisation makes. This was rejected due to the time limitations of the paper.
The major limitation of the study lies in its relatively small sample size and the limited coverage. This was mainly attributable tithe limited time and resources available for the study. Although thesis a small sample it will conclude on the findings with recommendations for further research papers into the subject.
4.0 Literature Review
This chapter will review current and recent articles and books of the topics of Training, HR and government policy.
4.2 What is training?
Training can be defined as a planned process to change attitudes, knowledge or skills and behaviour through a range of activities to achieve effective performance. When this training is in the work situation, it develops the employee to satisfy current or future needs of the organisation (Beardwell, I et al 2004).
It is generally accepted that methods of training can usually be separated into two categories: on-the-job, and, off-the-job. On-the-job training is implemented at the trainee's workplace, while off-the-job training is conducted away from the trainee's workplace and takes them outside of their work environment (Mullins, L. 2005).
Training can be used as a change agent, to change the culture of an organisation. It is also a tool to improve organisational effectiveness, especially in fiercely competitive markets. All too often organisations that are facing financial problems will cut back the training program, where as they could be used to increase overall performance. The training budget is viewed too often as an expendable, and the first to cut or even go in crises (Rogers 2004).
4.2 Why Train
Nobody in business would disagree with the cliché that a company is only as good as the people in it. But opinions differ on how that translates into practice, and what it means in terms of the way a firm goes about gathering and developing a world-class staff line-up. With near full employment in the UK, the fight for talent is as ruthless as ever, and getting, hanging on to and developing those people remains the HR issue of the moment.
The principal function of any organisation is to increase the value of the business and therefore enhance the wealth of its Owner(s). This is obtained by efficient use of the limited “resources” available to them(T Blackwood, 1995). Garrick (1998) discussed that training inextricably linked to market economics, that "knowledge is prized ins far as it can generate a market advantage“(Garrick 1998:5). This leads to the assumption that though training and developing employees, it can give the organisation advantage, increasing profit.
Best (2001) discussed the “new economy, as a knowledge-based economy without borders, where the race is between companies and locales over how to learn faster and organise more flexibly to take advantage of technology-enabled market opportunities” (Best (2001) cited in DeFillippi, R. 2002). Organisations have changed in the way they operate, shifting from immobile-wired infrastructures to mobile, miniature, and wireless modes of communication, computing, and transacting. Customers now demand 24 hour service, with “anytime, anyplace" solutions of their problems (DeFillippi, R. 2002).
Radical shifts are taking place in management theory; these shifts need to be reflected in the theory of training and development. The move towards a knowledge economy makes these shifts vital to the survival of the organisation. Ideas of training tend to focus on results; typically they are short-term and assume transferable skills. Ideas of personal development may be insufficiently focused on the workplace. Therefore for an organisation to enter the knowledge economy, it is vital for them to review their training and development to a broader aspect (Bryans, P. & Smith, R. 2000).
Increasingly, as the nature of business and organisations change, its ‘leaders are recognising that their most valuable assets are their skilled employees and, more significantly, the knowledge, both tacit and explicit, that is possessed by these employees. The "knowledge is power" cliché has never been more accurate than in today's corporate world. This added value that this can be seen in products and services is now dependant on knowledge based intangibles (Rogers 2004).
Since the late 1990s the business environment has drastically changed(Mullins, L. 2005). Chaos theorists have argued that the world of the organisations is “turbulent and chaotic, making it impossible for them to predict the future” Therefore conventional approaches to strategic decision making are no longer appropriate (Harrison, R. 1997:78).Competition and the pace of change in business require continuous improvement, therefore it means continuous learning. From this demand the market for business education has grown with a proliferation of courses, full- and part-time, 'open' and bespoke (Mullins, L. 2005).
4.3 The Role of HR
Recognition of the importance of HR has increased in recent years; thesis a result of competition from overseas economies. In countries for example Japan, Germany and Sweden investment in employee development is higher than the UK. This has led to some organisations reviewing their policies on training introducing continuous investment in their employees (Beardwell, I. et al 2004).
This increase in training priority has been supported by a rise inhuman Resource Management. This practice emphasises that increased growth can only be maintained in the long run; by equipping the workforce with the skills they need to complete their tasks (Mullins, L.2005).
Although it is argued that HR departments are within UK organisations mostly administration based. Rogers (2004) stated that “the threat revolves around a fundamental mismatch between the functions of Departments today and the real strategic human resource needs of modern business, which those departments it should be serving“. The image of training and development has changed and can be used a key driver for delivering shareholder value (Rogers 2004:25).
The role of HR should not be administrative based; it should be a part of the long term strategy of the organisation. Appointed an HR manager to the board is the only way this can happen (Beardwell et al2004).Rogers (2004) discussed the “role of developing human capital strategies that HR has a real opportunity to shine”. There are numerous departments are failing to deliver the goods. This is caused by “too many departments are dominated and viewed by the board as fulfilling mainly administrative role, dominated by endless form filling” (Rogers2004 :25).
For HR to succeed it must take on a proactive role within the organisation. Strategic HR creates value by providing opportunities for organic learning, development of intellectual capital and enhances core competencies. This value is crucial to the organisation's future success (Treen, D. 2000). Employers are increasing extorting the best possible performance from employees. Best practice will increase the skills of the current workforce, and with recruiting it will reinforce the culture of a highly skilled work force (Mullins, L. 2005).Strategic HRM has gained both credibility and popularity over the past decade, specifically with respect to its impact on organisational performance (Paauwe, J & Boselie P. 2003).
To fully exploit the wealth of knowledge contained within an organisation, it must be realised that it is in human resource management that the most significant advances will be made. As result, the human resource department must be made a central figure in an organisation's strategy to establish a knowledge basis for its operations (Mullins, L. 2005).
There are fundamental differences in the approach to HR. Storey(1987) discussed these as 'hard' and `soft’ versions of HRM.. The ‘hard' version places little emphasis on workers’ concerns and, therefore, within its concept, any judgments of the effectiveness form would be based on business performance criteria only. In contrast, ‘soft' HRM, while also having business performance as its primary concern, would be more likely to advocate a parallel concern for workers’ outcomes (Storey cited in Guest, D. 1999).
These models of HR theory, will justify why there has been an increase in this management practice. Walton (1985) defined HR as “mutual goals, mutual influence, mutual respect, mutual rewards, and mutual responsibility” Walton further added that the 'psychological contract ‘under this guitarist, high commitment model is one of mutuality, but it is a mutuality strictly bounded by the need to operate within an essentially unitary framework (Walton cited in Beardwell, l. et al2004)
There is a need for a higher value to be placed on employees. And therefore get the best performance from the employees. According toDelany (2001) “successful organisations keep people issues at the forefront of their thinking and at the core of their decision making and planning”. Delany adds “organisations that get the people things right are the organisations likely to be around in the future” (Delany (2001)cited in Mullins, L. 2005:748).
The role of human resource explicitly views employees as another resource for managers to exploit. In the past, managements had failed to align their human resource systems with business strategy and therefore failed to exploit or utilise their human resources to the full. The force to take on HRM is therefore, based on the business case of a need to respond to an external threat from increasing competition(Guest, D 1999).
This view reflects a longstanding capitalist tradition in which the worker is viewed as a commodity. The consequential exploitation may be paternalist and benevolent; but, equally, it may operate against the interests of workers. Essentially, workers are simply resources to be squeezed and disposed of as business requirements dictate. More importantly, the interests of workers and their well-being are of no significance in themselves. As John Monks (1998) stated “In the wrong hands HRM becomes both a sharp weapon to prise workers apart from their union and a blunt instrument to bully workers” (Guest, D 1999).
HR and training literatures highlights the organisational benefits tube gained from adopting a systematic approach to HRD, therefore thronging development of employees' skills underpins the wider business objectives (Keep, 1989). This systematic approach to training often includes models that identifying needs, planning, delivery and evaluation. Harrison developed an eight stage model to identify monitor and evaluate training. The evaluation stage is possibly the most problematic part of the training process (Reid and Barrington, 1997).
Therefore using that theory HRD should be viewed as a vital function offal organisations, and not just there to satisfy training issues, a proactive role. Caravan et al (2000) discusses the emergence of strategic HRD practices, which are directly linked to the organisation’s strategies, with profit maximising paramount, HRD is atoll that should be employed to obtain and support this (Caravan et al,2000).
Strategic HRD is not embraced by all organisations; some view other resources as more valuable. There are many individual interconnected components, that impact on the performance of the organisation. The human resource is in theory the most valuable resource, but does not always receive the respect, and the financial recognition to develop(Walton 1999). Mumford (1997) agreed with this stating that “other resources within the organisation have a higher value placed on them and they are protected by rules and regulations” (A Mumford 1997:78).
The theory of HRD appeals more to academics that the practioners. Garrick (1999) noted that academics rather than practitioners are more eager to pursue the 'learning perspective'. This opinion defines HRD as being solely concerned with employees' rather than organisational Strategy (Garrick 1999). Although this view is not shared by all authors. Caravan et al. (2000) defines the learning perspective that defines HRD as “responsible for fostering the long-term, work related learning capacity at an individual, group and organisational level”(Caravan et al. 2000:66).
A research undertaken by Robertson and O'Malley Hamersley reinforces this view of HRD. A two-year qualitative study composed from eighteen semi-structured interviews concluded that continuous professional learning was important to professional workers. To conclude from the study, learning does not have to directly correlate with organisational strategy. Therefore HRD can also be defined as a continuous learning programmes and encouragement of self-directed learning (Robertson and O’Malley Hamersley cited in Caravan et al. 2000:71).
Continuously during the late 1990s and into the current century there has been a shift in organisational HRD rhetoric. Walton (2004) has discussed this shift in practice as “from how to support learning to how to manage knowledge, from the learning organisation to knowledge management”. These are new implications for the HRD practitioner in what has loosely been named the new economy (Walton 2004).
4.6 Managers and facilitators
Education, training and development for managers, especially in the UK, has traditionally fallen into the “nice to have” category rather than the “must have” This view of business is persistent, with the assumption that managers are born and not made (Stern, S 2002). The majority of managers have learnt their skills through on-the-job experience. The conventional assumption, that managers learn best through “doing” whenever possible (Reader, A. 1998).
Focussing on the concept that the human resource is the highly valued, systems should be in place to protect their importance. Development for managers who manage employees is a basic component of management development (Marching ton & Wilkinson 1996). Mumford(1997) discussed the reason for failure of some of the processes has been “clearly been due in some instances to the absence of the required skills” (Mumford 1997:78). The majority of Managers would profit from training, but they are not capable of managing even with the intervention of training. These managers would still find in difficult to transfer the new skills and practices into their work place. The people who should train are not trained themselves (Walton 1999).
In the UK the majority of managers have been trained in a skilled occupation, and consequently promoted through the system (Beardwell& Holden 1994). Although highly trained in their primary occupation, the challenges of the managerial role are foreign to their skills. Rees commented that “few people start their careers off in managerial role; they have to acquire skills in organising employees effectively in an ever increasing competitive environment” (Rees cited in Beardwell & Holden 1994:373).
Good employee developers make a difference to the individual employee and/or their organisational performance. A new employee with a skills gap can be made to feel part of the organisation when he is developed into his role. Employees can be identified who have the potential for more demanding work or promotion but who require support to make this change. This can then set up a cycle of good behaviour that is passed on when the 'receivers' become managers and developers themselves. Anises study found examples of increased skills and knowledge, work experience, self-confidence, improved motivation, job performance and job satisfaction, all thanks to the developers (Sparrow 2004).
4.7 Learning Theories
Organisations have an economic need for all employees to be flexible within the workplace. The culture should encourage them to use their own initiative and apply the knowledge to undertake a variety of tasks. Cognitive learning lets the workforce learn strategies, and then transfer the learning to be able to solve problems. Lewis (1958) broke the learning down into three key stages. The first stage is the disposal of the old level (unfreezing), second stage is to implement the new structures and processes (moving) and the final stage involves stabilising the company with its new structure (refreezing). This technique was used so the organisation and the employees would be able to understand and implement improvements to their methods of working. Problems that arise from organisational change, which it is not flexible and cannot adapt swiftly to situations such as economic recession (Lewis (1958) cited in Buchanan, D and Hucczynski, A 1991).
Wilson (1999) summarised on three main adult learning theories. Behaviourist theories of learning recognise learning as a response to external stimuli. Maintenance of the new behaviour is enforced by positive and negative reinforcement, a system of punishment and reward. Cognitivist theories of learning emphasise the proactive nature of development.
This school of thought perceives human beings as seekers of knowledge in an attempt to understand our own identities and positionality. Humanist theories believe that learning occurs as result of our natural inclination towards it. People learn because in an environment of “warmth, care and understanding” (Wilson, 1999:197)we cannot help it. In this sense education is learner-centred; the student initiates the development environment and needs assessment.
People continue to learn throughout their life, whether this is formally taught or just experienced. The process of lifelong learning requires continuous adaptation. This is gained from increased knowledge and improved skills, which aid the individual to adapt to or change the environment. This allows for new possibilities and outcomes from situations that they face. These changes can raise the individuals self-esteem and confidence. Therefore the learning can generate far reaching changes in both the individual and the environment (Beardwell I et al2004)
Reinforcing learning within in an organisations, requires what Hawkins (1994) called "a change at the heart” this change is in “the understanding of learning, a shift from viewing learning as being abrupt facts to learning as a more multi-faceted and dynamic process”. As Hawkins suggests, it is not that we are learning any differently than before but "our understanding of how we learn has begun to catch up with what happens in practice" (Hawkins, 1994:9). The learning process has been challenged to create a culture that allows continual learning throughout the organisation. As knowledge is what matters, organisations and individuals alike must become continuous learners(Hawkins, 1994).
4.8 Identification of training
The UK government has introduced the National Occupational Standards(NOS). These are used as benchmarks of good practice in learning, and to identify the benefits to organisations and individuals that use them. These agreed statements of competence, describe the work outcomes required for an individual to achieve the standard expected of them(Wagner, L. 2004). These benefits can be used as a tool for the Human Resource Management function, to review and identify competencies in the work place. This process can start with recruitment and selection, measuring people’s experiences that will be transferred to the role, identifying any skills gaps in the existing work force (Harrison, R.2002).
Employees appraisals is a tool used as to identify development issues within the organisation. Harrison (1993) suggests that they are “system and process for the provision of both feedback to employees on all aspects of their performance, and the opportunity for discussion to agree actions to assist their future development” (Harrison1993:256). Mullins defined the advantages of regular staff appraisals as “a formalised and systematic appraisal scheme will enable a regular assessment of individuals’ performance, highlight potential and identify training and development needs” (Mullins 1996:639). The information collected from the appraisals can be used for strategic development of employees.
Outcomes can be used as measurement of success from the initial objectives. Harrison (1997) defined three outcomes that should come from appraisals, feedback on performance, work planning and diagnosis of training and development needs. If these outcomes are satisfied in the appraisal, then it will have a motivating effect on employees. IPhone of these outcomes is not satisfied, then the others cannot be satisfied (Harrison 1997).
4.9 Psychological contract
Organisations no longer offer “a job for life” there is no longer guaranteed employment, with a pension as a reward for loyalty and compliance. The "psychological contract" between employer and employee has shifted. Employees are increasingly mobile, changing employment for promotion, reward and job satisfaction; top employees have more choices to where to work. To retain these key employees the organisations culture needs to allow an environment of personal growth (Harrison2002). With less job security, the best reward an organisation can give an employee is transferable skills (M Marching ton & Wilkinson, 1997).
Workers have been forced to take more responsibility for their own careers, going where the work is rewarding and where they can develop skills that will guarantee their employability in whatever organisation. This mobility and "free agency" has created greater competition for skilled workers between organisations. Good workers have more choices than before, and are more liable to use them. Withal the costs involved in recruiting and training new employees, organisations need to retain them. And key to this is the intrinsic rewards (Harrison 2002).
Career development is important to the individual employee; Harrison(2002) noted this as an organised planned effort comprised of structured activities or processes that result in a mutual career-plotting effort between employees and the organisation. This Isa central component of the psychological contract that binds the individual to the organisation (Harrison 2002). This further complicates the role of the HRD PR actioner, balancing organisational needs with the individual’s expectations. Some employees will develop their career with one employer, while others require transferable skills. The organisation requires employees with the right skills to ensure and sustain competitive advantage (Gilley and England, 1989:48).
4.10 The Facts in the UK
When organisations do not employ the resources to evaluate the benefit gained from training, the needs analysis is not completed. Therefore any benefit gained is not known to the organisation. A studying 1989 revealed that only 3 per cent of UK organisations reviewed any cost-benefit analysis of their training intervention (Deloitte et al(1989) cited in Santos and Stuart 2003).
This approach within the UK has barely changed in fifty years. Evaluation of training intervention does not receive the consideration that accepted opinion demands; it is not an important factor in determining the allocation of resources to training. The important factor within an organisation is the focus of HR on the training and development needs, so they are focused on the learning needs of theorganisation.UK organisations fail when assessing the effect of training, to both the individual and the organisation (Sloman 2004).
A survey from the CIPD of 1,180 HR professionals agreed that the role of the HR department requires change to move forward. Mike Emmett, head of employee relations at the CIPD agreed with the survey stating “Theory community has internalised the message that it needs to spend less time on administration and operational issues and more time on business strategy and adding value“ The role that HR has adopted in the Appears to follow on from the role of the personnel department. For Hardtop be successful the HR department should hold a strategic position within the organisation (Mike Emmett cited in Zneimer and Merriden 2004:38).
The trend in the UK of under allocation of resources for training appears to be changing. Organisations are increasing training budgets as there is a fear of a skill shortage. The Training and Development Survey 2004 from the CIPD, concluded that there was little change in training budgets between 2002 and 2003, a third of organisations expect their training budget increase in 2004. In a third of UK organisations, employees receive more than five days training per year. Although thesis not the case for all employees, a fifth of employees receive less than three training days a year (Reade 2004).
Jessica Ropy, CIPD (2004) discusses the findings stating that "If anticipated increases in training budgets do not materialise, current skills shortages could translate into wage inflation, leading to adverse implications for interest rates, growth and the economy as awhile”. That economic uncertainty has led to a “'wait and see approach to investment in training”. The danger from this under investment could lead to skills shortages, and unrealistic salaries and unfilled vacancies that would hit the profit of organisations hard (Ropy (2004)cited in Reade 2004).
The CIPD survey has revealed a large disparity between the training budgets of public and private-sector training. Over a third of public sector organisations reported that their training budget had decreased, and they expected this trend to continue. This trend will increase the skills gap between both sectors, development as a recruiting tool will favour private organisations (Reade 2004).
4.11 Governments Intervention
The appearance of knowledge based economies, has deep implications for the factors of growth, the organisation of production and its effect on employment and skill requirements. This may call for new directions in industry related government policies (DTI White Paper). The Government aimed there learning policies towards the emerging knowledge economy. The prime minister stated that "education is the best economic policy we have” That through the policy of lifelong learning the Would have the knowledge to compete in the new economy (Tony Blair PM1998).
The UK government in 1998 set out its policy on lifelong learning in discussion paper. David Blunkitt (1998) described this radical shift in policy as “Learning is the key to prosperity, for each of us as individuals, as well as for the nation as a whole. The investment inhuman capital will be the foundation of success in the knowledge based global economy of the twenty-first century” (Blunkitt, D. cited in Green Paper 1998).
The Government stated that they were placing learning at the heart of its ambition. Through consultation the aim was to place learning as alive long process, building on human capital by encouraging the achievement of knowledge and skills, that emphasis creativity and imagination. This lifelong learning would be in place by the first decade of the new millennium (Green Paper 1998).
One of the concepts of lifelong learning is to encourage people back into education; developing the community with knowledge and skills. Barriers of entry into education were removed allowing the growth in knowledge to be part of every ones lives. The government identified target areas that were underrepresented in higher education, and introduced measure to address the problems. This should allow access to learning and education for all individuals (DfEE 1999).
A change to a learning society is achieved by improving the vocational education and training of individuals (Coffield, F. 1998). Anne Wrighta founder of one UFI reinforced the benefits stating that “encouraging people to understand the need to update their skills is the main challenge." For this to be successful all parties involved must cooperate. This will then provide learning that is relevant, accessible, flexible, affordable and fun. Access to learning should be available to all that require knowledge, removing any barriers (Wright,A. cited in Weston, C. 1998).
The government have introduced individual learning accounts, contribution from public funds will be made through local Training andEnterprise Councils (TECs) and the Chambers of Commerce. The rationale behind this policy is individuals will add to their own account, persuade their employers to sponsor them, or even borrow money to pay for the learning and qualifications they require. Thus placing the onus on the individual to obtain the training required, taking it away from government (Ashby, P. 1998).
It is argued that organisations require new skills to survive; the new thinking is based on complexity and chaos theory. Organisations are viewed as self-regulating, emergent, open, whole systems. This contrasts the metaphor of organisations being machines to that of organisations as living systems (Capra 2002 cited in Nixon 2004:58).For organisations to prosper in the future global economy, workplace culture needs to enhance a learning organisation, fluid responses tithe ever changing environment. This can only be obtained with proactiveHRD policies, disseminating a culture of learning throughout the organisation (Nixon 2004).
There is conflict within the majority of organisations in the UK as to how much of the resources will be dedicated to training. This is a buyoff for the economic position of the organisation, and can prove short-sighted in the long term.. Although within the private sector there is now a growth in training budgets. Training has always been the the first cost cuts in times of recession. Yet the organisations needs attain work force to survive. The economic perspective of training depersonalises the human resource, places little value within it.Whereas organisations that embrace knowledge and learning satisfies the physiological contract and helps to retain and nature employees. HRD should be the realm of all managers not just a specialist department. The cost of not developing employees in the long term is far greater than the cost of developing them.
4.12 Case Study
This is a brief case study taken from recent articles on the organisations; this will be combined with the appendices that are taken from the organisation’s web page. These appendices include topics such as Human rights and health and safety. Although these topics are not directly linked to training, they demonstrate the organisations commitment to employees.
4.12.1 Tesco’s profits have soared 20% in the last year, taking them toe record £2 billion and setting a new milestone for UK business. The company takes almost one of every three pounds spent in a supermarket, and more than one of every eight pounds spent on the High Street(Poulter, S. 2005).
4.12.2 The supermarket chain is Britain's biggest private employer with nearly 260,000 staff (Poulter, S. 2005)
4.12.3 Tesco ensures that each and every employee has the opportunity to understand his or her individual role in contributing to the Tesco core purpose and values. This requires an innovative induction programme that caters for different cultures, styles of learning and varying commitments to the job (Whitelock, N. 2003).
4.12.4 The frontline staff are considered the ultimate reflection of Tesco to its customers, but all employees have a very important role to play in turning core values and customer commitment into reality on a daily basis (Whitelock, N. 2003).
4.12.5 A major Tesco challenge is to ensure that all of its employees, wherever they work, are aware of the role they play and that they can clearly see how their actions affect the "big picture" of the overall business. The training creates a graphical journey through the history of Tesco, its core purpose, values, business goals, financial aims, operations and marketing strategy and its commitment to customers All employees are receiving more training than before (Whitelock, N. 2003).
4.12.6 A human-resource-led business strategy has helped Tesco to take the lead over its rivals in the fiercely-competitive UK supermarket sector. The strategic policy (Future) started in the company’s supermarkets, where its aim was to free up stores so they could do more and improve customer service (Anonymous 2003).
4.12.7 Future concentrates on providing a clear way of defining roles, responsibilities and activities. The system guarantees that all employees are responsible, accountable, consulted and informed(Anonymous 2003).
4.12.8 A group of 13 key management techniques is used to improve the core skills of the workforce. The techniques include root cause analysis, problem solving, plan-do-review, situational leadership and coaching for high performance (Anonymous 2003).
4.12.9 The human-resource strategy revolves around work simplification, challenging unwritten rules, rolling out core skills to all head-office employees and performance management linked to achieving steering-wheel targets. This highlights the way in which Tesco's business measures are closely linked to performance management (Anonymous 2003).
4.12.10 For the first time, people have been made a core element of strategy. The importance of this strand of the project has been recognised by putting a senior director in charge. Quarterly board meetings always review human resource issues. Tesco now tracks human-resource information as closely as financial results (Anonymous2003).
4.12.11 Looking ahead, Tesco intends to continue its emphasis on increasing the skills of its workforce. The firm aims to make learning into a truly integrated part of its culture, as an important way of developing organisational flexibility and remaining one step ahead of its rivals (Anonymous 2003).
4.12.12 Tesco, is the UK's No. 1 food retailer, with more than 970stores worldwide, recruits more than 40,000 individuals each year, formal walks of life and cultural backgrounds. This diversity is recognised within the training program. Which is widely attributed tithe success of the organisation.
5.0 Findings and analysis
This chapter will discuss the findings from both the case study and the appendices on Tesco, and compare this with the discussion from the literature review. Tesco’s have exceeded the government’s expectations for learning, having introduced training as a strategically advantage(4.11).
Tesco’s have been very successful in the business sense, towards both the stakeholders and the shareholders (4.2, 4.12, & appendix 6).They have exceeded all interested parties expectation. With the growth of the company they have increase their commitment to corporate social responsibility. Employees are considered an important area of responsibility. This includes the human rights aspect of employing staff, treating all employees fairly (Appendix 4).
Being the largest Private employer in the UK Tesco takes this responsibility seriously, this is demonstrated through their training and development policy (4.4, 4.7, 4.9 & Appendix 1). This has exceeded the government’s recommendations for training of the individual and the move towards a learning society.
Each employee is considered a part of the overall strategy, therefore they are instructed on the importance of their role (4.9 & Appendix1). This training is delivered in a way that encompasses all learning skills and allows for cultural difference (4.7 & Appendix 1).
The organisation runs an academy that recognises skills in the individual. The training is identified from core, operational and leadership skills. All employees can access the core skills. These development programmes are tailored to the individual’s skill level(Appendix 2). The delivery method for the training is varied, allowing for the individuals learning preference (4.7 & Appendix 1 & 2).
The “big picture” of Tesco’s strategic direction is discussed withal employees. This helps the individual employee to understand their role and importance within the organisation. Therefore placing a high value on their human resource (4.4), this is also discussed in their corporate social responsibility.
Although with the CSR they acknowledge only meeting the minimum standards of terms of employment in foreign countries (appendix 4).
There has been an increase in training within the organisation; all employees now receive more training than before (4.1). This is a result of the HR department taking a strategic role. HR is not an administrative department within Tesco; they are proactive and are on the strategic level of the organisation (4.4).
Tesco’s operate within a fiercely competitive sector, using a human resource led business strategy, has help to place them in the number one position. This is only sustainable if the strategy is on-going, with competitors actions monitored for any changes (4.4).
The organisation has seen the advantages that training can give, and has fully incorporated this into their business (4.3). The process of training is formalised through recognition of the need and continual review (4.5 & 4.8).
The training of front line staff is delivered by line managers. These managers are trained in this function (4.6). All levels within the organisation are committed to training and are instructed on the benefits that can be gained. This has increased commitment to the process from all that are involved (Appendix 1).
With the changing employment market, employees feel less job security and are taking more responsibility for their career paths. The skills they are taught within Tesco’s could be transferable; therefore in the long run they could benefit competitors (4.9). Although the benefits of training the work force exceed disadvantages, this employee mobility should not be ignored (4.2).
Their “every little helps” slogan is easily recognised by the customer, but is also built in to the training program. This slogan is part of the ethos and culture that is Tesco (Appendix 6). The organisation surveys their employees to gauge motivation and to identify training which employees require. This goes further than just identifying organisational benefits of training. Individuals can plan for the future career (4.8)
Tesco’s long term strategy is to continue to place value on employee training and to integrate it into the culture of the organisation. They are using this approach to maintain their competitive edge. The value that is placed on HR demonstrates commitment from the top levels of the organisation to training (4.4 & Appendix 6)
Tesco’s intentions are to maintain this increased emphasis on staff training and to integrate this learning fully into the organisation. They are positive with training, and from the statistics they are not atypical UK organisation. There is constant reviewing of the intervention, and adjustment were necessary (4.10).
The case study of Tesco’s has demonstrated that by introducing a higher level of training to all employees has an effect on the bottom line. With the organisation this has been a positive reaction. This asks the question that if this level of training is reduced, would profits then fall. It is difficult to estimate the amount of profit that can be linked to a training intervention.
Although when employees are trained they feel part of the overall strategy of the organisation. This leads to a committed work force. Valued employee is a happy employee. This is then felt by the consumer, which gives the organisation added value.
The entire organisation is involved in training. This training is offered at all levels within the organisation, Managers and facilitators are developed to deliver this intervention. Employees have control on their training after the initial induction process. This allows employees control of their career path, with the choice of whether they want to move up the ladder or not.
Tesco’s is a very successful UK organisation. They have increased their market share and retail units over the past five years. This has been achieved partly through a fully integrated HR department. Although thesis not the only factor to their success, it has certainly been a major factor in it.
The HR department in Tesco is proactive, not getting caught in thievery day administrative function. This is where some organisations have gone wrong when introducing HR. This has allowed this department to focus on the human resource with such practices as training issues. This focus on HR is vital to the success of the department. Without commitment, it would amount to a waste of resources.
Other organisations could benefit from reviewing Tesco’s policies. They have demonstrated a model implementation of HR. This has been contributory factor to their increase in profits. Competitors will need to review their training policies, to reduce Tesco market share.
A further study into the training at Tesco’s, to answer the question fully, would be a cost analyses. This would compare the rise in the importance of HR including the training budget against the increased profit level. This statistical data can be reviewed, with any correlation identified. This is outside of this paper which is discussion on training, and the topic warrants a full separate review.
Training as an intervention has been a successful policy in the case study organisation. The evidence points to increased profits from training, and therefore there is a connection between training and profit.
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Treating people how we like to be treated.
We neverunderestimate the potential impact of our business on society. Wefirmly believe that we can be a force for good. We can do this bylooking after our people, promoting healthy living, supportingeducation, getting involved in the community, advancing inclusivity andmanaging our supply chain.
Training and Development
We are committed to developing our people to bring out the best ineveryone, and estimate that we spend around £23 million each year ontraining. All of our staff have access to training programmes and apersonal development plan, with six-monthly reviews, to ensure thatthey have the right skills to do their job. Through our Talent Spotting programme, every employee has a career discussion with their linemanager to plan their career at Tesco. Their details are then put in atalent pool to help individuals to make the most of opportunitiesavailable to them.
In 2003 we launched the Living Service training programme afterresearch revealed that, although service at stores was good, we wantedit to be even better. To help improve the workplace atmosphere, LivingService was set up in-store to train the whole Tesco team in newskills. The main message from the programme is that our attitude iswhat makes the difference between good and great service. The three Living Service expressions – Know Your Stuff, Show You Care, and Sharea Smile were created by staff to show what Living the Values lookedlike.
Our commitment to training and development is also one of our greatestcontributions to the international markets in which we operate. Forexample, in Thailand, we have invested more than 7.5 billion baht inemployee remuneration and training during the expansion of ourworkforce from 5,500 in 1998 to 17,300 today. Because only 16 of theseemployees are international expatriates, we are building skillsprimarily in the local workforce. Our policy of internal promotionswherever possible means that as the network of stores expands, staffalready working with the company are offered first option to return tonew stores in their home communities so they can be close to their families.
Learning for Life
Tesco's investment in education reflects our top line commitment to bea learning organisation. As an innovative and energetic company in ahighly competitive retail environment, learning and progression within the company is core to our operation.
Last year alone, over 800 people in our stores made the change intomanagement positions. Tesco has an extensive programme of learningopportunities for all our staff, developed and delivered through theTesco Academy. Through the Academy everyone in Tesco will be able toaccess learning tailored to their own personal development needs – frominduction and core skills to operating and leadership skills.
All staff has access to training on core skills includingproject management, meeting skills, and people management.
Learning to support the development of operatingskills will vary according to role. Bronze, Silver and Gold learning programmes are offered in stores and distribution centres. All staffcomplete bronze programmes to cover key operating skills. Silver andGold offer staff the chance to specialise in the many different areasof the Tesco business from bakery, through stock management to customerservice.
A full learning programme is offered to Tescomanagers. Learning opportunities range from classroom based coursessuch as Change Management to coaching and mentoring solutions designedto meet individual needs. Tesco has also invested in creatingstructured Leadership Development programmes for specific groups such as Store Managers and International Managers.
These programmes are complemented by investment to ensure everyone who wants to is able to reach their full potential:
Options: This programme allows staff in stores to put themselvesforward for fast track management, with extra hands on managementshadowing positions, as well as formal learning.
This is a programme across the business to ensure thatmanagers spot and then promote the potential of their staff andencourage staff to make the most of development opportunities – be itin management or in a specialism.
Following on the success of the learning centre at our Welham GreenDistribution Centre, Tesco have opened a further adult learning centreat Fenny Lock Distribution Centre.
The centre has 10 training PCs andoffers courses in reading, writing, maths and languages. Developedjointly with trade union Usdaw, the Tesco learning centres offerservices to Distribution Centre and store staff, their families andfriends. This is part of Tesco’s commitment to lifelong learning. At Tesco we believe that learning is not just for new recruits, it is forlife!
Tesco is also an active member of organisations which seek bestpractice solutions for UK education and business learning, including:the Council for Industry and Higher Education, Skillsmart and the Workand Enterprise Panel.
At Tesco we recognise that we have over326,000 talented staff working across the world. One of the problems ofemploying this many people is ensuring that the talents they have arenoticed and developed.
It sounds simple enough and now it is with the new talent spotting initiative.
Talent spotting has three steps: resource planning, career discussion and talent planning.
The most important of these for our staff is the career discussion.Each year every member of staff will have a career discussion withtheir manager. At this staff will be able to discuss their careeraspirations and managers will be able to give them advice on the bestway to develop their career in Tesco.
It may be taking some specific training courses or it could be having aplanned experience in a new area. It could be their manager coachingthem so when the right opportunity comes along the member of staff isready to take on that new challenge.
Obviously there is more to talent spotting than a career discussion,every manager has been coached in how to create the right environmentfor spotting talent, how to spot people's potential to do more and howto identify new challenges to stretch their people.
Apart from talent spotting we resource plan our people requirements for the coming year. Once this has been completed we start to talent planthose individuals who are ready to do more, this ensures that thepeople identified as part of talent spotting are actually moved to achieve their career aspirations.
Altogether it helps us deliver better to our customers as we are usingthe talent within Tesco to develop our business at the same time asretaining the talented people that make Tesco what it is today.
In 2002 we introduced a Human Rights Policy, whichaddresses employment conditions including wages, hours, freedom ofassociation, health & safety, discrimination, child labour andsecurity. Over the past year the policy has been rolled out across bothour UK and international businesses. The Chief Executive of eachnational business is responsible for the implementation of the policy.We support the United Nations Universal Declaration of Human Rights andthe International Labour Organisation’s Core Conventions.
We support the right of all our employees to join a trade union; aroundhalf our UK employees are currently members of a union. Since 1998 wehave had a pioneering partnership agreement with Usdaw, which hasbecome a model for employer-union relationships in the UK. Staff Forumsare held in all stores three times a year.
In 2003, in addition to our established Grievance Procedures, we havelaunched a new confidential Protector Line for our staff to call ifthey have concerns about whether something at work is legal or in thepublic interest. This should help us be more aware of possible problemssuch as theft, dishonesty and practices that endanger our staff,customers or the environment, so that we can take any appropriate action
Human Rights policy
Tesco is committed to upholding basic Human Rights and supports in fullthe United Nations Universal Declaration of Human Rights and theInternational Labour Organisation Core Conventions. We are committed tithe following:
We will treat all employees fairly and honestly regardless of wherethey work. All staff will have a written contract of employment, withagreed terms and conditions, including notice periods on both sides.All staff are entitled to reasonable rest breaks, access to toilets,rest facilities and potable water at their place of work, and holidayleave in accordance with the legislation of the country where theywork. All employees are provided with appropriate job skills training.
We will pay a fair wage reflecting the local markets and conditions. Wealways meet the national minimum wage and this is a key factor which wetake into account when looking at pay and conditions.
Working hours shall not be excessive. They shall comply with industry guidelines and national standards where they exist.
Employment must be freely chosen. Overtime shall be voluntary. We willnot employ illegal child labour, forced or bonded labour or condoneillegal child labour, forced or unpaid overtime.
Employees have the right to freedom of association. We recognise theright of our staff to join a recognised trade union where this isallowed within national law.
We provide a safe working environment for our employees by minimisingforeseeable risks in the workplace. All employees receive regularhealth and safety training. We provide proper governance for health andsafety.
Tesco shall abide by the non-discrimination laws of every country whereit operates. It does not discriminate unfairly on any basis.
We will not use, or condone the use of corporal punishment, mental orphysical coercion or verbal abuse. Tesco has disciplinary proceduresfor any member of staff whose conduct or performance falls below therequired standard.
We have formal grievance procedures through which staff can raise personal and work-related issues.
Tesco has Codes of Ethics that govern relationships between employeessuppliers and contractors. The Compliance Committee regularly monitorsadherence to these Codes.
We ensure that our store security arrangements do not infringe HumanRights and are consistent with international standards for lawenforcement.
Any employee who suspects infringements of the policy or any of theabove has the right to inform us without fear of persecution.
We will investigate any allegations of infringements of the HumanRights Policy, and take appropriate action as necessary. Seriousbreaches by employees will be considered gross misconduct, and may leadto their summary dismissal.
This policy applies to all Tesco employees whether they are in full time, part time or temporary employment.
Health and safety
We are committed to providing a working environment and a shoppingexperience which protects the health and safety of our people, ourcustomers, and our visitors as far as is reasonably practicable. Wemeet this commitment through a comprehensive risk management processthat ensures the ongoing identification and minimisation ofoccupational health & safety risks across the business. Effectivecontrol measures have been developed and incorporated into ouroperational procedures including investment in training for all staff.We constantly monitor and review our performance and seek feedback fromour people. Every store measures health & safety performance andreports on this to their employees, as well as to management. Our aimis to eliminate preventable accidents and ill health associated withour work and premises, and to reduce the rate of reportable accidentsas the business grows.
In 2002 we launched our Health and Safety Step change programme tofurther improve standards of health and safety across the business.2003/4 has seen significant progress on this programme including:
• the re-launch of our staff health and safety consultation forums at all stores;
• the introduction of improved health and safety management trainingfor our store managers and senior team, again across all stores;
• Completion of three safety campaigns covering our commonest hazards in-store.
With over 326,000 employees in thirteen countries, Tesco plays animportant role in creating employment, fostering skills, and generatingeconomic development. This year alone, our UK workforce has grown by16,000 and we have created 14,000 new jobs in our internationaloperations. Many of these jobs are created in regions often overlookedby investors or with high unemployment.
In addition to the economic benefits of paying salaries and localtaxes, we go further by increasing share ownership among our staff, sothat they have an active stake in the success of the business. In 2004we gave more than 161,850 of our UK staff shares worth £110 million. Athird of these shares came from the most recently matured Tesco profitshare scheme, and £63m worth of shares were given as part of the newShares in Success scheme to all employees with more than a year'sservice.
Our people tell us there are four things that they are looking for at work:
Everything we do for our people is focused on delivering these four things, to help make Tesco a better place to work.
One of the ways we measure our progress is through Viewpoint, our staffsatisfaction survey. We run this every February and we believe it to bethe biggest survey of its kind in the UK.
In 2004 over 230,000 of our people were asked to give us feedback onTesco as an employer and 90% of our staff responded. In addition to theannual survey, a smaller number of staff are sent a quarterlyquestionnaire so we can monitor interim progress. The Viewpoint Surveyis also carried out in our international stores.
We use Viewpoint to make sure we are working on the right things forour people, just as we use feedback from customers to improve our offerfor them.
In 2003 we introduced the TWIST (Tesco Week in Store Together)programme, where 920 senior managers and directors spent five daysworking on the shop floor, gaining a better understanding of what goeson.
It was extremely popular among staff, and generated many new ideas for the business. In 2004, we have enlarged the scheme so that storemanagers can work in other stores, and also offered the opportunity to150 of our largest suppliers, giving them the chance to spend a week instore and see our operations from a different perspective. We arecurrently analyzing the 200 or so suggestions and ideas resulting fromlast year’s programme. TWIST was also held in many of our internationalstores.
Human resource at Tesco’s
It is our people who make the difference where it matters most -with customers. And when you've got 240,000 people around the worldwith 190,000 in the UK alone, that's a lot of opportunity to make adifference!
Delivering to customers through our people also means that every one ofour managers needs to be a strong leader as well as a great trader. Aleader who lives our Values and is there for their teams by providingthe help and opportunity they need to succeed. Also a leader who helpsensure that work is interesting and satisfying so that our people canboth love what they do and have a life.
That's quite a challenge, which is where HR come in. The role of HRin Tesco is to ensure that managers have world-class skills and toolsto serve their people. It is also the role of HR to be thought leadersin the shaping of our business processes around talent, performancemanagement and learning.
So, a strong HR team is key. As well as a team of specialist HRManagers and Personnel & Development Executives, we have a varietyof other roles, in areas from Staff Involvement to Resourcing. We alsohave people dedicated to talent spotting, learning and knowledge management, and an Organisational Design Manager.
The career prospects in this leading edge HR department are excellent -in a short space of time you could lead a large-scale project thataffects the whole business or manage a team of specialists and generalists.