MGT601 - SME Management - Lecture Handout 28

User Rating:  / 0


Objectives of Training

  1. To improve job performance.
  2. To develop employees for new responsibilities.
  3. To prepare employees for promotion.
  4. To reduce accidents and wastage.
  5. To instruct in the operation of new equipment.
  6. To ensure management succession.

Effective management succession requires prior planning. Seemingly simple matter has special problems in the case of small business particularly when it comes to its practical implementation. The entrepreneur is moulded in thinking in a groovy fashion. Moreover, training is not a one time job. It is a rather continuous process. Training seeks to upgrade an employee’s knowledge to keep abreast of changes in competitive business environment and prepare for advancement to challenging opportunities.

Before initiating a training Programme, the owner/manager should ascertain as to what training would induct change. Change herein implies the attainment of improved ability. The change should benefit both individual and organization. The change should occur in the following five areas:-

  1. Knowledge
    It refers to the storage of information by an individual for use in problem-solving and decision-making. Greater the amount of knowledge, better equipped shall be a person to accomplish a job.
  2. Attitude
    It is a state of mind which creates an urge to work for personal and organizational growth.
  3. Ability
    It is the proficiency in performance of a given task.
  4. Job Performance
    It measures how well the individual meets the requirements of a position.
  5. Operational Results
    These indicate how well the organization has been able to achieve its objectives and goals.

Conditions Facilitating Training and Development in Small Company

  1. Existence of a board that insist on management succession program and its follow up.
  2. Steady growth of company which stimulates the need to prepare staff for foreseeable change.
  3. Recognition of need for training by the entrepreneur who devotes his time and energy towards it.
  4. Freedom given by entrepreneur to young executive to new experiment with new ideas and accept risk connected with it.
  5. Degree of delegation of responsibilities.

Methods of Training

  1. On-the-Job Training
    It is the most practical and most often used technique in small business. Depending on the complexity of task and experience level of the employee, the training may vary from few hours to several days. Training of this kind is given in three phases.
    • Demonstration
      The job is demonstrated and each stage is explained. It is done slowly so that trainee can ask questions as well as provide feedback on his understanding of work procedure.
    • Performance
      Performance i.e. the employee applies what he has learned in the preceding.
    • Inspection of work
      Inspection of work of employee is to provide immediate reinforcement of correct method of performance.
  2. Apprenticeship Training
    Apprenticeship training is the from of training that combines both formal classroom learning and on-the-job training experience particularly in technical cadres.
  3. Job Rotation
    It is particularly beneficial in the case of small companies wherein each employee has through understanding of different functions. Employees are moved from job to job for few days. It helps employees combat the problem of monotony and boredom because of varied work experience. Group Training Through Conference Method.
    Major advantage of this technique is that participant has opportunity to express their viewpoint and share their experiences through a discussion of a common problem.
  4. Heir Apparent Technique
    In it, entrepreneur identifies the person to be trained for management succession. He is encouraged to learn every facet of company’s functioning. He is rotated trough various positions of the company and is gradually given increasing responsibility.
  5. Off the Company Premises Training.
    It includes:
    • University & Technical College.
    • Correspondence Course.
    • Training Films.

Evaluating Training Needs in Small Business

The evaluation of training needs in a small business can be done by asking the following.

  1. What are the objectives of training?
  2. What do employees need to learn?
  3. How much will the program cost?
  4. What will be the method of instruction?
  5. What kind of physical facilities would be needed?
  6. What shall be the duration of training?
  7. Who will conduct training?
  8. How will effectiveness of program be measured?

Related Content: MGT601 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of SME Management