Leadership and development

Table of content

Title 1. Introduction 1.1 Importance of training and development in organization 1.2 Theoretical consideration in the study 1.2.1 Kobls experiential theory 1.2.2 VAK theory 1.3 Training and development and business environment of Tesco 1.4 planning and appraisal methods of training and development 1.5 Application of best training and development approaches in Tesco Conclusion References

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List of figures

Figure: 1.1.1 Market share of leading retailers in UK Figure 1.2.1 Kobls experiential theory Figure 1.2.1 VAK theory Figure 1.4.1 ADDI model/ Approach to training

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Leadership and development

An Assignment for Leadership and development

A report on training and development as a vital tool for organizational success: a case of Tesco plc UK 1. Introduction In this global era of competition and increasingly fast changing business environment, maintenance of and access to skilled human capital is more crucial than access to technology or capital in the race of winning competitive advantage among the rivalries in an international marketplace. There is burgeoning widespread recognition that training and development is the only means for keeping up-to-date employees with the seamlessly developing new trends, technologies and behavior then keeping business always ahead of competition and on track with new initiative, outstanding customer service and knowledge. The investment in Training and development and the skills is therefore a vital in terms of gaining high productivity, leading organizational performance and to boost an effort of ensuring business success even in this time of crisis hit challenging and struggling economic situation. This paper aims at critically analyzing an importance, appraisal method and best practice approach of training and development. 1.1 Importance of training and development in retail sector: Tesco The world has been being long hardly hit by economic crisis and the retail sector is ever evolving which has resulted in hard time and exclusive race for retailers. They are facing the severe competition from the global market leaders and players especially in the field of quality, productivity and competitiveness. The situation is very tough for the existing and leading retailers in UK that peoples purchasing power parity is decreasing on one hand and on the other hand global market place, new entrants are continuously emerging in the market and business environment vehemently changing. In this critical situation, Tesco has no choice rather than being centrally focused on people: employees, community and customers because retail business is totally dependent on communities and peoples consumption behavior and talent of employees that how they deliver master service to customers, behave communities and cope with the changing technologies, business environment and behaviors. So the central focus and investment goes to its people and training and development which deliver positive results for business and keeps competitive amid of complex situation. Training enhances employees understanding, skills and ability required to perform the given job or task efficiently in organization. The more efficiency of employee leads the higher the improvement of organizational performance which unlocks the route to retail success in the long run (Cohen, et al, 2008) .Training and development is most important factor in business because it increases staffs productivity, task expertise, reduce turnover, improves the performance of retail business and
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eventually drives business towards ongoing realization of success even in the fast shifting business environment. Tesco, the largest retailer in UK and third biggest in the world has 293 676 employees across UK, created 21000 new jobs in 2011, 2000 apprenticeship and (6.2%) people were trained from store keeper to managers. Tesco has earned profit before tax 2.07million in 2012 however group trading profit was down by (13.0 %), profit before tax was down by (14.5%) compared to the last year however it has largest market share in the UK retail market as shown in the figure below ( Annual report, 2012) Figure: 1.1.1 market share of leading retailers in UK

Source: Tesco, (2011) However, the above figures are the whistleblower for Tesco even if it has the largest market share that it shows Tesco has faced the first reduction in profits for the last two decades in early 2013.The financial indicators shows Tesco, business is inversely heading towards the destination beyond it aims. It indicates that there is really big business challenge in UK so it needs to revise its policies, strategies and re think of the existing performances and come up with new initiative so that it could regain the previous volume of business. Thats why it still needs to focus more on effective training and development programs which increase the efficiency and effectiveness of both organization and employees as result delivers dramatic positive results for the business. 1.2 Theoretical consideration in the study 1.2.1 Kolbs theory of experiential learning This theory assumes learning is a continuous process of creating knowledge through the transformation of experiences. Kolbs cyclical model of learning goes through concrete experience (feeling), reflective observation (watching), abstract conceptualization (thinking) and active experimentation (doing) as depicted in the figure below.

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Figure 1.2.1 kobls experiential theory

Source: Kobls, (1984) Kobl suggests this theory is an effective mode of acquiring knowledge and skills through experiences that a learner can enter the cycle of learning at any stage depending on environment or situation and he/she will best learn the new task if the learner goes through four modes. Basically, the process begins from concrete experience or feeling means receiving practical techniques and tips about a new task, - reflective -observation/ watching indicates watching other performers and thinking related to the task,- abstract conceptualization understanding the way to perform the task and getting a clear grasp about the concept of the task and active experimentation tells start performing the task. 1.2.2VAK theory (visual- auditory and kinesthetic theory) VAK theory assumes that every individual posses different kinds of preferences instead of having single strength of grasping a new task and information. Theory suggests most people have a dominant or preferred learning style while few learners do possess a blend preference of the three styles as shown in the figure below. Figure 1.2.1 VAK theory

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Learning style Visual Auditory Kinesthetic

Description Seeing and reading Listening and speaking Touching and doing

Source: Gardner, (2003) According to the assumption of this model, people may better learn new task by (visual learning style) suggests seeing and reading the seen or observed pictures, things, diagrams, demonstrations, handouts, films etc. The principle equally emphasizes on Auditory style of learning according to which learners will also best learn by the medium of listening and speaking that embodies information transformation such as spoken words of others or self through listening. The third style: kinesthetic suggest learners may effectively learn by physical sense which includes physical experiences, feeling, doing, practical hands on experience, touching etc (Gardner, 2003). 1.3 Training and development and business environment of Tesco Training is the systematic effort of developing employees competencies and capabilities through learning experience in order to cope with changing environment, technological advancement, avoid obsolesce and to achieve effective performance in an activity within current job focus. Training thus contributes in adding great value for organization, meeting objectives and goals of organization by aligning corporate culture, mission and values and resolving the issues arisen within organization (Dessler, 2011). Employee development is an organized effort of building employees growth and career, developing managers, managing talents with the provisions and plans of promotion, pension, flexible hour, and international visits etc. Employee development is also most important for organization that produces talented leaders and managers who can make great contribution for organization in terms of winning competitive advantage in this era of international rush. Because today,s main challenge for companies is an art of human and human management which can not be bought and compared with any other cost(Smith, 2006). Business environment is defined as all the internal and the external forces or events having immediate and general influences over present as well as future plans, activities and strategies of any business organization. There are two types of business environment; micro and macro
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Leadership and development

environment. The factors intertwined with the internal structure and having immediate impact on daily operation of business is micro environment. The activities which are out of organizational control but still have border contextual influences on business of organization is macro environment (Shaik, 2010). Business environment of Tesco encompasses the activities of customers, suppliers, competitors, shareholders, employees, economic, socio- cultural, technological aspects etc. Internal business environment of Tesco seems more crucial than macro business environment that the existing and new entrant rivalries are emerging in UK such as Morrison, Asda, Costco, Cooperative, Mark and Spenser etc. Every day they are coming with the new strategy to satisfy the existing and attract new customers in the market. Customers shopping behavior is apparently being changed, growing technological advancement and UK is still inversely hit by economic crisis. so , keeping eyes on those things, Tesco should design and develop training and development programs in order to meet the organizational needs and take a new pace in the market so that it can add more value to organization, win competitive advantage by earning lifetime customer and employee loyalty so far. 1.4 Planning and appraisal methods of training and development Effectiveness of training and development always depend on the way or method of how you train people and conduct appraisal as per the strategic need of organization. Because the same thing they can teach people in number of ways ideally in two ways; On-the- Job and Off-the Job training. So the choice and application of the method of training and development does ever play important role in equipping employees with necessary knowledge, skill and abilities to perform the assigned task efficiently in organization. An application of method which is unable to impart the sought skills to employees ultimately drives a company towards failure in a long run (Lynton & Pareek, 2008). Method of training literarily refers to the principle of training cycle in terms of their design and application which provides framework for training design according to the need of employee and organization. It plays vital role in offering right way of learning so as to meet organizational needs of training, to hone competencies of employee and achieve improved companies performance (Reenen, et al., (2005) Planning of training includes the process of need assessment, task analysis, organize and outline, setting objectives, development and evaluation. Similarly appraisal of training and development consists of collecting the data, gather the reaction, assess the learning techniques and measure the results or impact of training and development programs on goods and service delivery (Bee & Bee, 1997). Tesco as a market leader in UK adopts different types of training methods however more focused given on On-the Job method of training to train and develop its people. On the job training method is based on the Kobls experiential learning theory and VAK Kinesthetic learning style
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which is widely practiced one to one, face to face learning process delivered on the job in normal working place using the actual materials and documents. So on-the-job training is the method in which a trainee directly involves in the work and learns a task indeed by doing it which is based on the experimental theory learning by doing and one can easily and immediately be productive. Tesco is increasing its investment and focus on preparing future leaders through training and development. Tesco provides wide range of options for training and development that it offers apprenticeship programs of 18 months long along with NVQ level 3 to 3000 rising stars per year which is in increased by 30% as compared to previous year. Tesco conducts instructional, induction programs, mentoring etc on the job which is effective in its technical and grass root level of workers. As the off-thejob training, Tesco conducts degree program, helping hands program, TWIST program, advanced leadership program etc (CR, 2012). As a result Tesco is continuously maintaining its leadership in the UK market except slightly drop in its performance. So its planning and appraisal methods of training and development seems still effective however it needs to be more result oriented than before. 1.5 Application of best training and development approaches in Tesco Approach to training and development refers to the step by step procedure from planning to evaluation of training programs in organization. Approach gives overall picture of how one identifies the need of training, what type of training is designed, implemented and how the results are assessed at the end. This is why, application of training and development approach is vital for giving positive result for business in this time of global rivalries. The more effective the approach the higher the positive effect of training on employees performance then to productivity and profitability of organization as well. There are different types of approaches to training and development however systematic and ADDI approaches are more result oriented, clear in concept, easy to understand and effective to apply in the process of materializing training program in organization (Tennant, et al.,2002). Tesco also seems applying the models as a result it is being one of the global leaders. Even though it should keep its eye on new approaches to training specially designed for retail sector. The systematic approach to training consists of 6 phases and ADDI includes the following 5 major sequential stages of training (Rothwell and Benkowski, 2002). Figure 1.4.1 ADDI model/ Approach to training

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Analyze Design

Evaluate

Implement
Source: Rothwell & Benkowski, (2002)

Develop

Analysis: it suggests training should start with identification of need of training, the gap between current employee performance problems and desired skill so that company can really find the blanket solution on it as far as possible. Design is brain storming phase includes establishment of learning objectives. Development is the stage of drafting specific training programs based on the need analysis. Then the approach suggests implementing the structured training aiming to meet organizational need. Final stage evaluation is to measure and understand effectiveness of training on employee against meeting organizational objectives and goals. I would see these two are the best approaches and recommend to use any of them that would be the best practice of approach to training in a company. These approaches provide important impetus to the setting of objectives and criteria for evaluation. Training and development is never ending product that is why they always needs revisions in order to keep up situation change and meet organizational goals. 1.5 Conclusions Training and development has ongoing a cause and effect relationship with business success. It develops employees efficiency, competencies, manages talents and by which improves organizational performances. Therefore, the application of best approach to training, selection of effective method of training and training programs for Tesco will be the milestone to lead an organization towards sustainable realization of business success in UK.

Leadership and development

References
Bee F & Bee R (1997) Training Needs Analysis and Evaluation, Exeter: Short Run Press. CR, (2012), Corporate responsibility 2012 available at www.tesco.com accessed at 4/7/13 Cohen, Wilde and Bethune, (2008), Global Leadership Requires a Global Mindset: Industrial and commercial training. Bingley UK: Emerald Group press. Dessler, G., (2011), Human resource management (11th ed.). United Kingdom: Pearson Ltd. Gardner, H. (1993). Multiple intelligences: The theory in practice. New York: Harper Collins. Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. New Jersey: Prentice-Hall. Lyton and Pareek, (2008), Training for development (2nd ed.). New Delhi: Dorling press. Reenen, John, Dearden and Reed, (2005), Impact of Training on Productivity: London School of Economics and Political Science, CEP Discussion Paper no. 564, 2006. Sadler-Smith, E., (2006) Learning and development for managers: Perspectives from Research and Practice, NJ: Wiley. Shaikh, S., (2010), The business environment (2nd ed.). New Delhi: Kindersley Pvt Ltd. Tesco, (2012), Annual report 2012 accessed to www.tesco.com at 1/7/13. Tennant, Boonkrong and Roberts, (2002), The design of a Training Program Measurement Model, Journal of European Industrial Training, vol.25, Dec.2011.

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