Business · Year 12 · Decision Making to Improve Human Resource Performance · Summer Term

Training and Development

Examine the different types of training available to employees, such as on-the-job and off-the-job training, and assess how investing in staff development can improve skills, motivation, and overall business performance.

TL;DR:Explore how businesses cultivate their most valuable asset: their people. This topic examines the critical role of training and development in building a skilled, motivated, and high-performing workforce.

• National Curriculum Attainment Targets
• AQA AS-Level Business (7131): 3.6.3 Improving organisational design and managing the human resource flow

About This Topic

This topic delves into the strategic function of Training and Development within Human Resource Management, a critical component of the A-Level Business curriculum. It moves beyond a simple definition of training to explore its role as a key driver of competitive advantage. Students will examine the practical differences between on-the-job methods, such as coaching and job rotation, and off-the-job methods, like attending external courses or pursuing formal qualifications. The core of the topic requires students to adopt a managerial perspective, conducting cost-benefit analyses of different training options and understanding the profound impact that investment in human capital can have on organisational performance.

The curriculum requires students to link training directly to key business metrics. They will analyse how effective development programmes can improve employee motivation, drawing on established theories from Maslow or Herzberg, and subsequently reduce costly labour turnover. Furthermore, the topic challenges students to think strategically, justifying training expenditure not just as an operational necessity but as a vital enabler for growth, particularly for businesses navigating the complexities of new technologies or expanding into international markets. This involves evaluating how a skilled workforce can enhance innovation, quality, and customer service, ultimately strengthening the business's market position.

Key Questions

1. Compare the costs and benefits of on-the-job training versus off-the-job training.
2. Analyse how a structured employee development programme can improve labour retention.
3. Justify the expenditure on training for a business entering a new, technologically advanced market.

Learning Objectives

• Distinguish between on-the-job and off-the-job training methods, providing relevant examples for each.
• Analyse the costs and benefits associated with different forms of employee training and development.
• Evaluate the impact of training on key performance indicators such as employee motivation, productivity, and labour retention.
• Justify investment in a staff development programme as a strategic decision to achieve business objectives.

Key Vocabulary

On-the-job training	Training that takes place within the normal work environment, using the actual tools, equipment, and processes that employees will use in their role.
Off-the-job training	Any form of training that occurs away from the immediate workplace, such as at a college, specialist training centre, or online.
Induction training	A programme designed for new employees to introduce them to the company, its culture, procedures, and their specific job role.
Staff development	A long-term process focused on the personal and professional growth of employees to enhance their capabilities and prepare them for future responsibilities.
Labour turnover	The rate at which employees leave a business over a given period, usually expressed as a percentage of the total workforce.
Apprenticeship	A formal programme that combines on-the-job training with off-the-job study, leading to a recognised qualification.

Watch Out for These Misconceptions

Common Misconception

Training is just an expense for the business.

What to Teach Instead

While training has direct costs, it is more accurately viewed as an investment in human capital. Effective training can yield significant returns through increased productivity, higher quality output, improved employee morale, and lower staff turnover, all of which positively impact profitability.

Common Misconception

On-the-job training is always cheaper and therefore better.

What to Teach Instead

Although direct costs for on-the-job training are often lower, there are hidden costs to consider, such as the lost productivity of the employee acting as the trainer and the risk of passing on bad habits. The 'better' method depends on the complexity of the skills required and the specific business context; sometimes a specialist off-the-job course is more efficient and effective in the long run.

Common Misconception

Once an employee is trained for their job, the process is complete.

What to Teach Instead

Development is a continuous process, not a one-off event. In today's dynamic markets, ongoing professional development is essential for keeping skills current, maintaining motivation, and preparing employees for future challenges and career progression. This is often formalised as Continuous Professional Development (CPD).

Active Learning Ideas

Decision Matrix

Training Investment Dilemma

Provide small groups with a case study of a retail business implementing a new inventory management system. They must analyse the costs and benefits of two options: a cheap, on-the-job cascade training, versus a more expensive, off-site specialist course, and present a justified recommendation to the 'management board'.

60 min·Small Groups

Decision Matrix

The Boardroom Pitch

In pairs, one student role-plays a Human Resources Manager and the other a Finance Director. The HR Manager must pitch a new graduate development programme, justifying its long-term benefits against the Finance Director's focus on short-term cost control.

30 min·Pairs

Decision Matrix

Training Showdown Debate

Divide the class into two sides to debate the motion: 'This house believes that for most UK service sector businesses, on-the-job training is always more effective than off-the-job training.' This forces students to articulate and defend the nuances of each approach.

45 min·Whole Class

Real-World Connections

• Major UK supermarkets like Tesco and Sainsbury's use extensive on-the-job training for customer service roles to ensure consistency and efficiency at the point of sale.
• The 'Big Four' accountancy firms (Deloitte, PwC, EY, KPMG) invest heavily in off-the-job training for their graduates to study for professional accounting qualifications like the ACA.
• The NHS requires its clinical staff to undertake regular Continuous Professional Development (CPD) to stay current with the latest medical practices and technologies.
• Engineering firms like Rolls-Royce and BAE Systems run highly-regarded apprenticeship schemes to develop a pipeline of skilled technical talent and address industry-wide skills shortages.

Assessment Ideas

Exit Ticket

Use an exit ticket where students must write down one advantage and one disadvantage of using apprenticeships to train new staff. This quickly checks their understanding of a specific training method.

Quick Check

Set an extended response question based on a business case study. Students must recommend and justify a comprehensive training programme for the business, evaluating the merits of different approaches.

Quick Check

Provide students with a 'confidence tracker' listing the key learning objectives. They can rate their understanding on a scale of 1-5 at the start and end of the topic to identify areas needing further revision.

Frequently Asked Questions

What is the main difference between 'training' and 'development'?

Training is typically focused on improving an employee's skills and knowledge to perform better in their current role. Development is broader and more long-term, focusing on growing an employee's overall capabilities to prepare them for future roles and career advancement within the business.

How can a business measure the return on investment (ROI) of a training programme?

A business can measure ROI by comparing the cost of the training against the value of its outcomes. This can be done by tracking metrics like increases in sales, improvements in productivity, reductions in waste or errors, and decreases in staff turnover costs after the training has been completed.

Why would a company invest in training an employee who might then leave for a competitor?

While there is always a risk an employee may leave, investing in them fosters loyalty and improves motivation, which can actually increase retention. The benefits of having a highly skilled, productive, and innovative workforce often outweigh the risk of a few employees leaving. Furthermore, a reputation for good staff development can attract high-quality candidates to the business.