Training (VCE SSCE Business Management): Revision Notes
Training
Introduction to training and development
In today's highly competitive global marketplace, employee skills and knowledge represent a critical resource for business success. Workers need both technical capabilities for their current roles and the capacity to innovate and adapt to future challenges. Modern businesses must create learning environments that support continuous employee development.
Employees require training for various reasons. New staff may need instruction on equipment operation or software systems. Experienced workers must regularly update their skills to improve performance, learn about new products, and understand evolving policies and procedures. Research indicates that approximately two-thirds of Australian businesses rely on training and development programs to drive innovation.
Training involves equipping employees with the specific knowledge and skills necessary to perform a particular job effectively. This can include activities such as learning new software applications or mastering equipment maintenance procedures.
Development focuses on building broader capabilities that prepare employees, particularly those in management positions, for future roles and responsibilities. Unlike training, development has a more general focus rather than being job-specific. For example, a manager might develop communication skills, analytical thinking, or conceptual abilities to better manage subordinates. Development may also include supporting employees through postgraduate university courses.
Training needs analysis
Employers view training as a worthwhile investment in their workforce capabilities. Business owners or human resource managers conduct a training needs analysis to identify current skill gaps and anticipate future challenges requiring training interventions.
Three distinct levels of analysis determine training requirements: organisational analysis (business-wide needs), task analysis (job-specific requirements), and person analysis (individual employee needs).
Organisational analysis
The entire business is examined to identify where training activities would best support strategic objectives. This broad perspective considers business-wide needs.
Example: Large-Scale Organisational Training
If a business plans to change its computer network and software applications, this would require a comprehensive, large-scale training program across the organisation.
Task analysis
Individual jobs and their associated tasks are scrutinized to determine whether specific skills are necessary for successful performance. This focuses on the requirements of particular roles.
Example: Customer Service Role Analysis
Analysing a customer service position to identify whether employees need specific product knowledge or communication techniques.
Person analysis
Each employee is individually assessed to determine their specific training requirements. This personalised approach results in targeted training and development objectives for each staff member.
Example: Individual Training Needs
Performance appraisal might reveal that one employee needs technical training whilst another requires leadership development.
Training areas
Performance appraisals of existing employees may identify training needs in several categories:
- Basic skills: Grammar, mathematics, safety procedures, reading comprehension, listening, and written communication
- Awareness training: Equal employment opportunity, workplace diversity, risk management, sexual harassment prevention, and bullying awareness
- Technical, job-specific skills: Computer software courses, product knowledge, occupational health and safety compliance, customer service techniques
- Interpersonal skills: Communication, human relations, leadership, employee relations, collaboration, and teamwork
- Conceptual skills: Strategic planning, operational planning, organisational design, policy development, and decision-making capabilities
On-the-job training
On-the-job training occurs in the workplace where employees perform their regular duties. Training and development may combine both on-the-job and off-the-job elements. Apprenticeships exemplify this combination, with employees learning from experienced colleagues at work whilst attending regular classes at TAFE or similar institutions outside work hours.
Competency-based training has become increasingly popular, allowing registered training organisations to customise units of competency to meet specific workplace requirements. Competency refers to the ability to perform a task to a predetermined standard.
On-the-job training methods
| Training method | Description |
|---|---|
| Coaching, tutoring, mentoring | A supervisor or experienced work colleague provides guidance and instruction to develop employee skills |
| Role modelling | Employees learn by observing and imitating the behaviour of managers, supervisors, or experienced colleagues |
| Apprenticeship | The employee learns practical skills directly from an experienced person or co-worker in the workplace |
| Planned work activities, special assignments, committees | Employees gain diverse experiences through collaborative projects and committee participation |
| Job rotation | Employees move within or between departments, gaining broader experience and greater familiarity with business operations |
Advantages of on-the-job training
On-the-job training offers several significant benefits:
- Workplace-specific training: Employees learn using the exact tools and equipment they will use in their actual role, ensuring direct applicability
- Supervised practice: Employees work under the guidance of experienced staff who act as coaches or mentors, providing real-time support
- Immediate access to guidance: Trainers are readily available to provide instruction when needed, without waiting for scheduled external training sessions
- Customised content: Training is specifically tailored to meet the business's unique needs and practices
- Maintained productivity: Employees continue contributing to work output whilst learning new skills
- Cost effectiveness: The business avoids paying external course providers, making this an economical training option
The primary advantage of on-the-job training is its direct relevance to the workplace. Employees learn in the actual environment where they will apply their skills, using the specific tools and systems they encounter daily.
Disadvantages of on-the-job training
Despite its benefits, on-the-job training presents certain challenges:
- Variable trainer quality: The effectiveness depends heavily on whether the mentor or coach is properly trained and competent in their teaching role
- Inadequate planning: Training may lack proper structure, resulting in disjointed delivery that makes concepts difficult to grasp
- Information overload: Experienced mentors might attempt to cover too much material in one session, overwhelming trainees who need a slower learning pace
- Unfamiliarity with equipment: External trainers brought into the workplace may possess knowledge but lack familiarity with specific equipment and working practices
- Bad habits transferred: Trainers may unknowingly pass poor practices to trainees
- Trainer workload: Trainers must leave their own duties to conduct training, potentially affecting their primary responsibilities
The quality of on-the-job training is only as good as the trainer delivering it. Businesses must ensure that mentors and coaches are properly trained in teaching methods, not just skilled in their jobs.
Off-the-job training
Off-the-job training takes place away from the workplace in more formal training environments. This approach allows employees to focus entirely on learning without workplace distractions.
Off-the-job training methods
| Training method | Description |
|---|---|
| Information presentation style | Large lecture-style sessions with many attendees and limited interaction. Material is delivered in written and visual formats |
| Information processing style | Specialists from inside and outside the business facilitate conferences and discussion groups. This interactive approach encourages trainee participation. E-training (online learning) is increasingly popular, enabling employees to complete coursework during work hours and personal time |
| Simulations | Visual games and case studies model realistic business situations, allowing employees to practise skills in controlled environments |
| Role plays | Participants adopt different perspectives to gain deeper understanding. For example, a manager might play both management and union official roles in an industrial dispute scenario |
Advantages of off-the-job training
Off-the-job training provides distinct advantages:
- Broader skill development: A wider range of skills can be taught and learned in dedicated training environments
- Expert instruction: Participants learn from specialists and industry experts with advanced knowledge
- Focused learning: Reduced workplace interruptions allow employees to concentrate fully on the training program
- Networking opportunities: Employees can share information and build relationships with peers from other businesses facing similar challenges
Off-the-job training excels at providing exposure to industry experts and best practices from beyond the organisation. This external perspective can introduce innovative approaches and new ways of thinking.
Disadvantages of off-the-job training
Off-the-job training also presents certain drawbacks:
- Higher costs: Course fees, transport, and potentially accommodation expenses make this option more expensive
- Lost productivity: Employees are unavailable for work whilst attending training, reducing output
- Staff retention risk: Employees with newly acquired skills and qualifications may leave for positions elsewhere, possibly offering higher pay
- Limited workplace relevance: Skills learned may not directly apply to the specific workplace context
Off-the-job training carries the risk that newly trained employees may use their enhanced skills to secure positions with competitors, representing a potential loss of investment for the business.
Application: Woolworths' investment in training
A practical example demonstrates how businesses implement training strategies. In mid-2019, Woolworths restructured its store layout in response to changing customer expectations. Shoppers increasingly expected staff to possess greater product understanding and knowledge.
The new operating model included a $10 million investment in training and development, providing staff with additional skills training, career progression opportunities, and professional development. These changes reflected Woolworths' recognition that customers now prioritize fresh food, convenience, and positive shopping experiences.
Woolworths aimed to differentiate itself from competitor Coles by providing highly trained team members with specific product knowledge in fresh service departments, strengthening its fresh-food reputation.
By 2021, the operating model required further adaptation. The growth of online personal shopping services changed daily work requirements for many Woolworths team members. In response, Woolworths established a $50 million Future of Work Fund to equip employees with new capabilities, supplementing existing training investments.
The revised focus emphasized digital skills, advanced analytics, machine learning, and robotics. Woolworths offered vocational training funding to help team members develop skills for new roles within the business or prepare for careers outside the company.
This case illustrates how businesses must continuously adapt training programs to meet evolving operational requirements and maintain competitive advantage. Woolworths' willingness to invest significantly in training demonstrates the strategic importance of employee development in achieving business objectives.
Remember!
Key points to remember:
- Training provides job-specific knowledge and skills, whilst development prepares employees for future roles with broader capabilities
- Training needs analysis operates at three levels: organisational (business-wide), task (job-specific), and person (individual employee)
- On-the-job training is cost-effective and workplace-specific but depends on trainer quality and may transfer bad habits
- Off-the-job training provides expert instruction and networking opportunities but costs more and may not directly relate to workplace needs
- Competency-based training allows customization to meet specific workplace requirements
Key terms:
- Training: Providing employees with knowledge or skills required for a particular job
- Development: Building skills necessary for future work activities and responsibilities
- Training needs analysis: Diagnosing current shortcomings and future challenges requiring training programs
- Competency-based training: Training focused on performing specific tasks to predetermined standards
- On-the-job training: Workplace-based learning using actual equipment and processes
- Off-the-job training: Learning conducted away from the workplace in formal environments