Planned Training Yields Best Results - Training Needs Analysis in

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Technological University Dublin

ARROW@TU Dublin

Practitioner Journals National Institute for Transport and Logistics

1999-04-01

Planned Training Yields Best Results: Training Needs Analysis in


Supply Chain Management
Edward Sweeney
Technological University Dublin, [email protected]

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Part of the Business Administration, Management, and Operations Commons

Recommended Citation
Sweeney, E.:Planned Training Yields Best Results: Training Needs Analysis in Supply Chain
Management.Logistics Solutions, the Journal of the National Institute for Transport and Logistics, Vol. 2,
No. 2, pp. 6-7, April 1999

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Planned Training Yields Best Results
Training Needs Analysis in Supply Chain Management
Edward Sweeney, NITL

Training Needs Analysis (TNA) is concerned with designing training and education
programmes, and scheduling staff attendance at such programmes, to ensure that the
investment in training achieves both individual and business objectives. It should also be
concerned with defining objective measures on which the success of the education and
training can be assessed.

Investments in process changes and in capital and operating expenditures are usually
carefully (and often cautiously) planned. A similar process needs to be undertaken in
relation to human resource development (HRD). Research has shown that the largest
expense for HRD programmes, by far, is attributable to the time spent by participants in
training programmes, career development and/or organisation development activities. In
training, costs due to lost production and travel time can be as much as 90-95% of the
total programme costs. Direct and indirect costs for the delivery of training are about 6%
of the total cost, and design and development count for only about 1-2% of the total.
Realistically, it makes sense to invest in an assessment of needs to make sure wise
investments are being made in training and other possible HRD interventions.

Some form of TNA is inherent in the training process. For example, if a line manager
elects to send a member of his/her staff on a training course then the needs of the
department and the individual will most probably have been weighed up, at least
informally, and the decision taken that the training will provide some level of business
benefit. This form of TNA, whilst very common, is unstructured and provides little
scope for post-course assessment of training effectiveness. Many organisations use staff
appraisal systems to identify individual training needs and to set quantifiable objectives
for their staff over a set period. This is moving towards a structured TNA process.
However, there needs to be a level of consolidation, even with the appraisal system, to
ensure that an holistic approach to training delivery is developed taking the organisational
needs (and not just the individual’s needs) into account.

In essence, a TNA is a systematic exploration of the current and the desired state of
organisational affairs, with specific reference to human resources. The benefit of any
HRD intervention needs to be considered before investment is committed. Key questions
include:
• What learning will be accomplished?
• What changes in behaviour and performance are expected?
• Will we get them?
• What are the expected economic costs and benefits of any projected solutions?

Working with any relevant in-house analysis which may have already been generated, a
TNA programme can be developed that will enable the design of education and training
programmes which will:
• Ensure the needs of the business are addressed;
• Match individuals to the right training programmes;
• Develop course modules tailored to specific business needs;
• Allocate individuals to appropriate course groups; and
• Provide objective measures for post-training assessment of effectiveness.
The NITL TNA Process
The National Institute for Transport and Logistics (NITL) works in close collaboration
with companies in designing and delivering education and training programmes. The
NITL TNA process involves four key steps as follows:

Step 1. PERFORM A “GAP” ANALYSIS.


There are two parts to this.
Current situation: The current state of skills, knowledge and abilities of our current
and/or future employees must be determined. This analysis should also examine our
organisational goals and strategy as well as any internal and external constraints.
Desired or necessary situation: The desired or necessary conditions for organisational
and personal success must be identified. This analysis focuses on the necessary job
tasks/standards, as well as the skills, knowledge and abilities needed to accomplish these
successfully. It is important that we identify the critical tasks necessary, and not just
observe current practices. The difference (the “gap”) between the current and the
necessary will identify our needs, purposes and objectives.

Step 2. IDENTIFY PRIORITIES.


The first step should have produced a large list of needs for training and education, career
development, organisational development, and/or other interventions. At this stage these
needs must be examined in view of their importance to organisational goals, realities and
constraints. In identifying priorities the factors that need to be considered include:
• Cost-effectiveness
• Legal mandates
• Senior management priorities
• Number and level of staff involved
• Customer requirements
The key is to identify and to devote resources to addressing human performance
problems with the greatest impact on the business in as cost effective a manner as
possible.
Step 3. IDENTIFY CAUSES OF PERFORMANCE PROBLEMS AND/OR
OPPORTUNITIES.
Once critical organisational and personal needs have been prioritised and focused on,
specific problem areas and opportunities can then be identified. If appropriate solutions
are to be applied performance requirements must be known and understood. There are
two main questions:
• Are our people doing their jobs effectively?
• Do they know how to do their jobs?
This will require detailed investigation and analysis of our people and their performance -
both for the current situation and in preparation for the future.

Step 4. IDENTIFY POSSIBLE SOLUTIONS AND GROWTH OPPORTUNITIES.


In situations where people are considered to be doing their current jobs effectively, some
education and training and/or other HRD interventions might be called for if sufficient
importance is attached to moving our people and their performance in new directions.
But if people are not doing their jobs effectively then education and training may be the
solution. The systematic TNA process should ensure that any education and/or training
programmes are relevant to an organisation’s real (rather than perceived) requirements.

In essence, TNA is a process which aims to learn as much as possible about the
organisation and its people. It usually involves the use of one or more techniques,
including the following.

(i) Management Interviews


These are “semi-structured” and designed to develop an understanding of the nature of
the business and the organisational culture. This requires the commitment of a number of
key managers who are able to provide this level of organisational overview.
(ii) Questionnaires
These may be paper-based or on-line. Their aim is to gain a broad picture of an
individual’s current competencies and the skills they believe they need to carry out their
work. Often much of this information is already available in-house.

(iii) Follow-up Interviews


These are also “semi-structured” in nature and designed to test and validate the analysis
of the questionnaires.

Education and training should not be viewed as a panacea (or ‘magic solution’) for all
organisational problems. But the experience of world class companies is that continuous
education and training plays a vital role in sustaining and enhancing competitive
advantage. The key issue is designing HRD programmes which genuinely enhance an
organisation’s ability to compete in the market place both now and into the future.

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