MGT313 Human Resources Management

Human Resources ManagementUnit 48 min read

Training & Development: Methods, Evaluation & Real-World Impact

Unit 4 of Human Resources Management explores the core concepts of training and development in organizations, covering methods (on-the-job vs. off-the-job), evaluation techniques, and practical applications in Nepali and global companies like Nabil Bank and Daraz.

TAKEAWAYS:

  • Training and development (T&D) bridges the gap between current and required employee skills, directly impacting organizational performance.
  • Methods like on-the-job training (OJT) (e.g., mentoring at Nabil Bank) and off-the-job training (e.g., workshops at Daraz) serve different needs.
  • Evaluation of training programs uses Kirkpatrick’s Four-Level Model (reaction, learning, behavior, results) to measure effectiveness.
  • Real-world examples: Nabil Bank uses cross-training to improve customer service, while Daraz employs e-learning modules for logistics staff.
  • Case study focus: ABC Tech Solutions’ struggle with employee skill gaps highlights the need for structured T&D programs.

1. Definition and Importance of Training and Development

Training and development (T&D) refers to the systematic process of enhancing employees' knowledge, skills, and abilities to improve job performance and organizational success. It includes:

  • Training: Short-term, job-specific skill development (e.g., handling a new POS system at a bank).
  • Development: Long-term, career-oriented growth (e.g., leadership programs at NTC).

Why is T&D Important?

Skill enhancementProductivity gainsImproves PerformanceIncreased motivationBetter job satisfactionEnhances Employee EngagementLower attrition ratesHigher retentionReduces TurnoverAdaptability to changeFuture-proofing skillsEnsures Future ReadinessCreative problem-solvingNew ideas generationBoosts InnovationStrategic workforce developmentGoal achievementAligns with Organizational GoalsWhy T&D Matters?
Hierarchical breakdown of T&D benefits (Nepal HR context)

2. Methods of Training and Development

Training methods can be classified into two broad categories:

  1. On-the-Job Training (OJT)

    • Conducted at the workplace using real job situations.
    • Examples: Job rotation, apprenticeship, coaching, internships.
  2. Off-the-Job Training

    • Conducted away from the workplace (e.g., workshops, seminars).
    • Examples: Lectures, case studies, simulations, e-learning.

Comparison Table: On-the-Job vs. Off-the-Job Training

Aspect On-the-Job Training (OJT) Off-the-Job Training
Location Workplace External venues (classrooms, online)
Cost Low (no travel/venue costs) High (training materials, instructor fees)
Realism High (applies directly to job) Low (theoretical)
Examples in Nepal Nabil Bank’s teller training, Daraz’s warehouse staff NTC’s leadership workshops, Pathao’s e-learning
Best For Technical/operational roles Strategic/managerial roles

3. Methods of Evaluating Training Programs

Evaluating training ensures ROI (Return on Investment). The most widely used model is Kirkpatrick’s Four-Level Evaluation:

flowchart TD
    A["Level 1: Reaction"] --> B["Level 2: Learning"]
    B --> C["Level 3: Behavior"]
    C --> D["Level 4: Results"]
    A -->|"Did participants like it?"| E["Surveys, feedback"]
    B -->|"Did they learn?"| F["Tests, quizzes"]
    C -->|"Did behavior change?"| G["Performance reviews"]
    D -->|"Did business improve?"| H["Sales growth, efficiency metrics"]

Worked Example: Evaluating a Training Program at Daraz

  • Level 1 (Reaction): After a customer service training, 90% of employees rated it as "useful" (survey).
  • Level 2 (Learning): A pre- and post-training quiz showed a 30% improvement in handling complaints.
  • Level 3 (Behavior): Call recordings revealed a 20% reduction in customer complaints post-training.
  • Level 4 (Results): Sales data showed a 15% increase in repeat customers due to better service.

4. Real-World Applications in Nepal

Case Study 1: Nabil Bank – Cross-Training for Customer Service

  • Problem: High turnover in call center roles due to repetitive tasks.
  • Solution: Implemented cross-training (employees trained in multiple roles).
  • Result:
    • 30% reduction in turnover (employees found new challenges).
    • 25% faster resolution of customer queries.

Case Study 2: Daraz – E-Learning for Logistics Staff

  • Problem: High error rates in order fulfillment due to lack of standardized processes.
  • Solution: Developed online modules on warehouse management.
  • Result:
    • 40% fewer order errors within 6 months.
    • Reduced training time from 2 weeks to 3 days.
2018Initial e-learningpilot for 50 staff2019Full rollout to500 logistics employee2020Integration withperformance management202130% reduction inhandling errors report
Daraz Nepal's e-learning implementation timeline and impact

Trend Description Example in Nepal
Microlearning Short, bite-sized training sessions NTC’s 10-minute mobile apps on safety rules
Gamification Using games to engage learners Pathao’s driver training with reward points
AI & VR Training Virtual reality simulations Ncell’s VR-based technical training
Blended Learning Mix of online and offline training Himalayan Java’s hybrid leadership programs

## In the Real World

  1. Nabil Bank’s Teller Training

    • Idea Used: On-the-job training (OJT) with mentoring.
    • How? New tellers are paired with senior staff for real-time guidance on transactions, fraud detection, and customer handling.
    • Impact: Reduced errors by 22% in the first year.
  2. Daraz’s E-Learning for Sellers

    • Idea Used: Off-the-job training via e-learning modules.
    • How? Sellers complete online courses on listing products, handling returns, and digital marketing.
    • Impact: 50% more sellers completed onboarding in 2023 compared to 2022.
  3. NTC’s Safety Training for Engineers

    • Idea Used: Simulation-based training (off-the-job).
    • How? Engineers practice emergency response scenarios in a virtual power plant.
    • Impact: Zero major accidents in the last 2 years due to better preparedness.

## Exam Tip

  1. For short-answer questions (e.g., "Differences between OJT and off-the-job training"):

    • Use bullet points and comparison tables (as shown above).
    • Example answer:

      "On-the-job training is conducted at the workplace (e.g., coaching at Nabil Bank), while off-the-job training occurs externally (e.g., workshops at NTC). OJT is cost-effective but may lack depth, whereas off-the-job training is theoretical but comprehensive."

  2. For case studies (e.g., ABC Tech Solutions):

    • Structure your answer using:
      1. Problem identification (e.g., skill gaps).
      2. Training method suggested (e.g., cross-training).
      3. Expected outcomes (e.g., reduced turnover).
    • Link to real examples (e.g., "Like Nabil Bank, ABC Tech could use mentoring programs to improve technical skills.").
  3. For evaluation questions (e.g., Kirkpatrick’s model):

    • Describe all four levels with examples (e.g., "Level 3 (Behavior) could be measured by observing if employees apply new conflict-resolution techniques in meetings.").
  4. Avoid vague answers – Always tie concepts to Nepali companies (e.g., "Like Daraz, companies should use e-learning for scalable training.").


Final Note: Training and development is not just a cost but an investment. Companies like Nabil Bank, Daraz, and NTC prove that structured T&D leads to higher productivity, lower turnover, and better customer satisfaction—key factors in exam questions!

Based on the TU BBM syllabus for Human Resources Management (MGT313), unit 4.

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