“Training Strategies for Small and Medium Sized Businesses: One Size Doesn't Fit All.”

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  • Topic: Human resource management, Management, Business
  • Pages : 6 (2199 words )
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  • Published : August 30, 2010
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“Training Strategies for Small and Medium Sized Businesses: One Size Doesn’t Fit All.”

Abstract
The prerequisites for training vary in different businesses, with size being a significant factor. The smaller firms tend to conduct their training for their employees on a superficial level, having their entire focus on learning informal skills. Whereas in comparatively larger SMEs, there is a broader spectrum for the learning perspective. These companies want to obtain a more formal training with an objective of achieving standard skills. Thus, different firms have different training strategies regardless of the size. This paper analyzes these differences and identifies the challenges that may inhibit certain training strategies.

“Training Strategies for Small and Medium Sized Businesses: One Size Doesn’t Fit All.”

Introduction
The prerequisites for training vary in different businesses, with size being a significant factor. The smaller firms tend to conduct their training for their employees on a superficial level, having their entire focus on learning informal skills. Whereas in comparatively larger SMEs, there is a broader spectrum for the learning perspective. These companies want to obtain a more formal training with an objective of achieving standard skills. Thus, different firms have different training strategies regardless of the size. This paper analyzes these differences and identifies the challenges that may inhibit certain training strategies. A survey conducted by W. Paul and J. Storey (1997) among 6000 randomly selected SMEs in Great Britain showed that there are huge differences in the attitudes of the manager and the ways of fulfilling the training needs of either family or non family employees in their business. The family members need for training is viewed in terms of explicit development, whereas the case is entirely different for non family employees; it is only to foster their career building needs. It also indicated that the owners are in favour of training but do not consider it as an essential part of their business strategy. These managers also stated that often they are pressured by the government agencies and external trainers to spend a part of their profits into human resource development and in most cases, the decision for either allowing employee training or not was made by the manager or the owner of the organization. Only the rest of the 7% hired a professional human resource for training, but even in those firms, the final decision was in the hands of the owner or the manager (Paul & Storey, 1997). Through this paper, the researcher aims to identify the state-of-the-art training strategies that are used by different small and medium sized organization, the implications of different literature on these training strategies, and loop-holes between the distresses that owners of different SMEs have about the Human Resource Development issues.Review of Literature After looking at an overview of small business, M. Harry (2002) gave a pragmatic statement which says that the managers or the owners of approximately 63% of small businesses continues to be involved in the issues related to the development and training of the employees, regardless of the increase in the intense of complexity and formality in these firms. Only 26% of the organizations actually hired HR professionals and gave them the lead of the training program and developmental decisions. However, all of the respondents claimed to be using properly scheduled training plans and budgets, and recognized that there is a strong relation between their firms’s training requirements and a growing competitive advantage. Despite of all these facts, the owners of the firms still did not view training as an essential part of their entire business strategy. According to these firms, the training of non family workforce is an expense to the organization (Harry, 2002). On the...
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