Putting the customer first has been the mantra of many companies for a long time. But however correct the mantra may be, perhaps it’s time to question the wisdom of it. Some companies already have, that is, put the customer second, after employees. The results are surprising and enlightening – engaged and contented employees and companies cited for their best practices. Moreover, customers are satisfied. This author describes a model for putting employees first. Show
Steady, long-term competitiveness requires an organization to be committed to putting employees first and developing quality training programs that are linked to its strategic objectives. Without a true commitment to the employees at all levels throughout an organization, the journey to enhance organizational performance will be an elusive adventure. Quality employees equate to organizational success. Unqualified and poorly trained employees equate to organizational failure. Allocating adequate organizational resources to achieve an effective training environment has been a budgetary and operational challenge that has eluded many organizational decision-makers, primarily because they do not realize that training is only the tip of the iceberg when it comes to enhancing employee performance. Lurking beneath the issue of training is the commitment that an organization makes to its employees as reflected by the HR policies that management has established. In a recent Wall Street Journal, article it was reported that despite the claims from a majority of executives that their organizations treat employees with respect and offer fair pay for the tasks performed, the evidence tends to indicate that most organizations do not practice what is preached. The disconnection between what is stated and what is done can partially be traced to a marketing philosophy that began to dominate management theory after the production, product, and selling concepts faded in popularity. At the center of this philosophy is the notion that the customer should be the focus of all organizational activities and planning. Although the emphasis on the customer appears to be a logical premise for building organizational success, it is quite misleading. The deception begins with the fact that many organizations simply do not know who their customers are. For example, at a college or university, who is the customer – high school graduates, adults returning to college, graduate students, foreign exchange students, or individuals seeking a vocational trade? What is the socio-economic and demographic data associated with these classifications of students? Who is the customer for a retailer like Walmart? Is it the person who drives a Mercedes to Walmart in order to purchase everyday items at lower prices or it is the individual who uses public transportation to arrive at the store? A customer who can not be specifically identified in every detail is an illusion. Illusions serve as a poor basis for building successful strategy. And once the “customer” has been identified, should he or she be placed at the center of every organizational activity? Doing so, I believe, pushes aside the true essence of the organization, minimizing its significance. The heart of an organization is its employees and its members. The abilities, decisions, plans, training, and actions of the employees of an organization are what draw individuals to a particular college or retailer or even to purchase a product or pay for a service. The primary driving force that brings people into a concert hall is to hear enchanting music performed by trained musicians whose skills and talents are on display. Highly qualified employees produce quality products and provide quality service that satisfies consumer needs. Putting the customer secondAn organization’s employees have always made the difference between a truly successful organization and a mediocre entity, but it’s amazing how often managers overlook or discount this fundamental recipe for economic survival. Organizations with cultures that focus on their people and that invest in their future will in the long-run, be more competitive than cultures that view employees as mere costs to be reduced in times of trouble. My premise here is that an organization that plans every action around its employees will thrive in the marketplace. The Wegmans chain of grocery stores headquartered in Rochester, New York, has repeatedly been cited as one of the best employers in the United States. The company’s focus on its employees has made Wegmans a shining example of how a local, family-managed organization can successfully compete against national and international grocery chains. As I explain in my recent book, Strategic Training: Putting Employees First, organizations that adopt a managerial philosophy of putting employees first tend to have a type “A” organizational culture. A type “A” culture exists when (1) the relationship between administration and non-administrative personnel is built upon trust, (2) cooperation between individuals and departments/units is encouraged while politicking and favoritism are discouraged, and (3) individuals feel that their actions have a meaningful impact on the organization and that their organization stands for something more than just the pursuit of profits- that the organization also contributes to the welfare of the community. In organizations with a type “A” culture nothing is more important than the training and development of its employees. It’s the employees who breathe life into an organization for it’s their skills and abilities that give an organization its competitiveness. As stated by Peters and Waterman, Jr. (2004, 1982) “productivity and the economic rewards that go with it are achieved through the people of an organization.” A fundamental rule of organizational survival is to put employees first and develop their abilities and skills by establishing a quality training environment. The Strategic Training of Employees Model (STEM)The Strategic Training of Employees Model (STEM) offers a methodology to effectively and efficiently design training and career-development programs so that organizations can generate the highest possible output value, given the realization that resources will always be scarce to some extent in all organizations. The practical considerations of the STEM model are:
The structure of the strategic training of employees model (STEM)The STEM model consists of three levels: a macro and a micro-organizational training level, and an implementation, feedback, and evaluation level. 1. The macro-organizational training levelAt the macro-organizational level, the strategic objectives that have been formulated by management are integrated into the training process. Strategic planning occurs at four levels (corporate, business, functional, and operating) and the training function must be linked to all four levels as well, because the output value that an organization generates will increase when the skills and abilities of the employees match the job tasks that are required to accomplish the strategic objectives of an organization. A task analysis provides the means for matching the skills and abilities of the employees with the duties and tasks of the jobs that are required to achieve the organization’s strategic objectives. 2. The micro-organizational training levelAfter a task analysis is completed, the organization can begin developing employee training programs that are based on the jobs deemed necessary to support the strategic objectives established by management, as well as the tasks and skills required to perform each of these jobs. This information is then used to target specific employees for training, and then to design training content that will assist those employees in performing their jobs. When determining training content, the “four Ps” (product, place, promotion, and price), first popularized in 1960 by E. Jerome McCarthy, will be used to provide a concise and practical framework for guiding training content decisions. In the STEM model, the product is the training content that will be provided; the place is the set of location factors regarding training; the promotion element refers to how information that pertains to training is communicated; and finally, the price refers to any costs associated with providing training. Once specific training programs have been developed, the final analysis level can begin: to implement, obtain feedback, and evaluate each training program. Now let’s provide details about how the STEM model can be used to develop training and career development programs that will assist an organization in creating the highest possible output value. STEM Application ExampleAnalysis at the Macro-organizational training level Training situation Analysis at the Micro-Organizational training level Employee target market Product content objectives Place objectives Promotion objectives The general-merchandise department managers will be notified of the training by their store manager. The training session will be highlighted in the company newsletter. The importance of establishing consistent merchandising displays will also be summarized in the company newsletter. Price objectives Total cost of the training: $14,822.27 (see the cost analysis sheet) 3. The implementation, feedback, and evaluation training levelAn information booklet highlighting the merchandising techniques and company display standards will be distributed to the trainees. Each trainee will be expected to demonstrate the merchandising techniques by setting up an actual merchandise display that meets company standards. Three weeks after the training, the director of training will meet with each store manager to review the performance of the general-merchandise managers. The vice president of general merchandise will visit the stores to review the store displays and meet with store managers. Cost Analysis Sheet
Note: Future training costs for this program are expected to be reduced because of the training video. Travel costs are expected to be reduced by $2,100; external consulting costs will be reduced by $2,000. Projected training costs are forecasted to be $10,722.27/10 employees (or $1,072.72/employee). This represents a 27.6% decrease per employee from the original cost of training. In their never-ending quest to improve performance, organizational decision makers chase after the most-recent technological breakthroughs or the latest marketing techniques or the “hottest” trends in management or finance theory just like puppies race in circles trying to catch their tails. After all that frantic scrambling around, what tends to emerge from those efforts are short-term cost reductions and momentary spikes in some numbers on quarterly accounting reports – no long-term solutions to organizational competitiveness and success. Steady, long-term competitiveness requires an organization to be committed to putting employees first and developing quality training programs that are linked to its strategic objectives. Without a true commitment to the employees at all levels throughout an organization, the journey to enhance organizational performance will be an elusive adventure. Quality employees equate to organizational success. Unqualified and poorly trained employees equate to organizational failure. Why is training important in an organization?Training and development programs provide a host of benefits. They enhance employee performance, boost employee productivity, reduce employee turnover, and improve company culture. Explore the importance of training and development programs for employees and employers by pursuing a career in human resources.
What is the first step in the strategic training and development process?2.31 The first step in the strategic, training and development process is to identify metrics to determine if training will be successful. 2.32 Internal analysis involves identifying opportunities and threat.
What are strategic training and development initiatives?Training and development initiatives are instructional activities within an organization intended to improve an employee's work performance. These programs usually incorporate enhancing a worker's knowledge and competencies as well as increasing drive to improve job performance.
Which of the following is true of an action plan for training?Which of the following is true of an action plan for training? It is a written document that ensures training transfers to the job. Simulations can be used to teach production and process skills; however, they cannot be used to teach management and interpersonal skills.
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