Training (Edexcel A-Level Business): Revision Notes
Training
Training is essential for developing employee skills and improving business performance. Understanding different training methods, their costs, and benefits is crucial for A-Level Business exam success.
What is training?
Training is the process of increasing the knowledge and skills of workers so they can perform their jobs more effectively. It's a key human resource management function that helps businesses meet their objectives.
Training objectives
Businesses invest in training for several important reasons:
- Improving productivity – employees learn more efficient working methods and techniques
- Technology adoption – workers become familiar with new equipment, software, or systems being introduced
- Process changes – employees adapt to new working methods (e.g. moving from production line to cell production)
- Increasing flexibility – workers develop the ability to perform multiple roles within the business
- Career development – preparing employees for different positions, whether lateral moves or promotions
- Quality enhancement – raising standards of work to improve product or service quality
- Legal compliance – implementing health and safety policies and meeting legal requirements
- Motivation and satisfaction – building employee confidence and self-esteem through skill development
- Recruitment and retention – attracting and keeping high-quality staff through quality training opportunities
Training needs are often identified through the appraisal process, where managers assess employee performance and development requirements. Sometimes employees request training independently, such as managers undertaking MBA courses in their own time.
Types of training
Induction training
Induction training is designed to help new employees settle quickly into the business and their jobs. It introduces workers to the organization, its culture, and work practices.
The scope of induction training varies significantly:
- Small businesses might simply pair a new employee with an experienced worker for a day to 'show them the ropes'
- Large corporations may offer year-long programmes where graduates rotate through different departments
- Most programmes cover the nature of the business, work practices, and health and safety requirements
The length and depth of induction training typically reflects the size of the business and complexity of the role.
On-the-job training
On-the-job training is training delivered in the workplace by the employer. Employees learn while performing their actual duties.
Methods of on-the-job training
Learning from other workers: An employee works alongside an experienced colleague, observes them performing tasks, and then practices with their guidance. This is the most basic and common form of workplace training.
Mentoring: A more experienced employee provides ongoing advice and support to a less experienced worker. The mentee can approach their mentor for help and guidance at any time, creating a supportive learning relationship.
Job rotation: Workers spend periods performing different jobs in sequence. This builds broad experience across multiple roles, eventually preparing them for more specialist or senior positions. It's particularly useful for management development.
Traditional apprenticeships: Historically common in skilled trades like carpentry or engineering, these programmes combined workplace learning with formal instruction over 3-5 years. Apprentices only became fully qualified workers when the business confirmed their competence. Many traditional apprenticeships declined due to costs, mechanization, and changing work practices, though modern apprenticeship schemes are now experiencing a revival.
Graduate training programmes: Medium to large businesses offer structured programmes for university graduates. These typically provide either professional training (e.g. accountancy, law) or managerial development, combining practical experience with formal learning.
Advantages and disadvantages of on-the-job training
| Advantages | Disadvantages |
|---|---|
| Output continues to be produced during training | Output may be lost due to trainee mistakes |
| Highly relevant as trainees learn by doing the actual job | Can be stressful for trainees, especially when working with experienced colleagues |
| Cheaper than external training alternatives | Trainers may become frustrated if they're unpaid or their own work suffers |
| Easy to organize with minimal planning required | Could pose safety risks in critical roles (e.g. surgeons, train drivers) |
Off-the-job training
Off-the-job training takes place outside the business and is delivered by external training providers such as colleges, universities, or specialist training organizations.
Examples of off-the-job training
- Young workers (16-25) attending college one day per week for vocational courses (e.g. catering, engineering)
- Trainee accountants undertaking intensive courses or evening classes before professional exams
- Graduate managers completing MBA programmes at business schools during evenings and weekends
- Employees attending specialized courses that the business cannot provide internally
Off-the-job training can deliver specialist knowledge and qualifications unavailable within the organization. However, it can be expensive, particularly when businesses pay both course fees and wages for employees' attendance time.
Advantages and disadvantages of off-the-job training
| Advantages | Disadvantages |
|---|---|
| Mistakes don't affect actual output or customers | No productive output while employees attend training |
| Learning occurs without workplace distractions | Can be expensive, especially with specialist providers |
| Training can potentially occur outside work hours | Some work aspects cannot be taught outside the workplace |
| Customers and colleagues aren't put at risk | Trainees may find some content irrelevant to their specific role |
| May require significant time to organize |
Benefits of training
Although training requires significant investment, multiple stakeholders benefit:
Benefits for managers
Managers gain from improved workforce performance and easier management. Trained workers are typically more motivated, satisfied, and cooperative. They perform their jobs more competently and demonstrate greater flexibility, simplifying organizational planning. Quality training programmes also enhance the business's reputation, making it easier to attract and retain talented staff.
Benefits for owners
Business owners see improved financial performance through higher productivity. Better-trained workers reduce costs per unit, potentially creating competitive advantages. Enhanced efficiency and quality lead to higher profits and better returns on investment. However, owners must balance training investment against potential risks like employee departure.
Benefits for employees
Workers who receive training can perform their jobs more effectively, reducing workplace anxiety and increasing job satisfaction. Employees feel valued when employers invest in their development, boosting motivation and reducing stress. Training also builds transferable skills useful for promotion or securing better positions elsewhere.
Benefits for customers
When training improves skills and quality standards, customers receive better products and services. They particularly benefit from enhanced customer service skills, including more effective complaint handling and problem resolution.
Real-world Example: John Lewis Partnership
John Lewis Partnership (JLP), owner of Waitrose, exemplifies businesses recognizing training benefits. They offer employees (called "partners") extensive training opportunities, including Retail Apprentice Schemes at Level 2 and Level 3. These programmes combine on-the-job and off-the-job training methods, developing a skilled, committed workforce.
Costs of training
Training costs can be substantial, sometimes making businesses reluctant to invest heavily. However, some training costs are unavoidable – for example, health and safety training is often legally required.
Key training costs
Training courses and resources: Businesses must pay external training providers for off-the-job training. Even internal training can be expensive when specialist training staff and equipment are needed. Course fees, materials, and facilities all contribute to these costs.
Loss of output: When workers undertake off-the-job training, they produce nothing, directly reducing output levels. Even on-the-job training can decrease output due to mistakes and slower work as employees learn. This opportunity cost represents significant potential revenue loss.
Employee departure: Businesses become frustrated when employees leave to join competitors after receiving training investment. This "poaching" problem leads some businesses to prefer recruiting already-trained workers from other organizations. Some companies now use training contracts requiring employees to repay costs if they leave within specified periods.
Exam focus: Evaluating training decisions
For analysis questions, consider:
- The specific business context (size, sector, financial position)
- Whether training addresses a clear business need
- The balance between costs and benefits
- Time pressures and competitive requirements
For evaluation questions, weigh up:
- Whether benefits justify costs for this specific business
- Short-term costs versus long-term gains
- Alternative uses of the training budget
- Risks of not training (e.g. legal issues, poor quality, low motivation)
- Industry-specific factors affecting training value
Common evaluation points:
- "It depends on the business's financial position" – large, profitable firms can afford extensive training; smaller businesses may struggle
- "It depends on the industry" – some sectors (e.g. technology) require constant training; others need less
- "It depends on the competitive environment" – markets valuing quality and service need well-trained staff
- "Short-term pain for long-term gain" – training costs may reduce immediate profits but improve future competitiveness
Key Points to Remember:
- Training increases employee knowledge and skills, improving job performance and business competitiveness
- Induction training helps new employees settle into the organization quickly and understand work practices
- On-the-job training (learning from others, mentoring, job rotation) is practical and cheaper but may reduce output quality initially
- Off-the-job training (external courses) provides specialist knowledge but is expensive and removes employees from productive work
- Training benefits multiple stakeholders: managers (easier workforce management), owners (higher productivity and profits), employees (better skills and job satisfaction), and customers (improved quality and service)
- Training costs include course fees, lost output, and risks of employees leaving – but legal compliance and competitive necessity often make training essential despite costs