2.3.1

Training

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The Importance of Training a Workforce

Training staff is very important for a business. It can have many positive effects:

Increased productivity

Increased productivity

  • Training a workforce means that they are likely to become more skilled at what they do.
  • In factories or services industries, if staff are more productive, this will be beneficial for the company by increasing output or reducing costs.
    • Investment Banks like Goldman Sachs start their graduate schemes with training programmes where employees learn about different investment products and the industry.
Ability to deal with change in technology

Ability to deal with change in technology

  • Training is needed for employees to know how to use new technology. In the digital world we live in this is more important than ever.
Increased motivation

Increased motivation

  • If staff feel that they are learning and progressing in a firm, then they are likely to be happier and more motivated.
High quality output

High quality output

  • Training staff usually makes them more skilled at the job they do. This will lead to higher quality output and this is usually beneficial for the firm’s profitability.
Staff retention

Staff retention

  • If employees are happier and more motivated then they are likely to stay at a firm for a longer period of time.
  • Reduces the costs involved with recruiting and training new employees.
    • Staff tend to get better at their job with more experience within the same business.

Methods of Training

A business' workforce can be trained in 3 main ways:

Induction training

Induction training

  • Induction training happens when employees first arrive at a firm. It introduces them to the firm and provides initial training for their role. Benefits include:
    • Employees feel comfortable in their surroundings and meet their new co-workers (colleagues), which may increase happiness, confidence, motivation and productivity.
    • Induction training is likely to make employees less likely to make basic mistakes.
On-the-job training

On-the-job training

  • This is the most common type of training. The employee learns how to do the job to a high standard while actually doing the job.
  • This usually involves an employee being shown how to do something and then practicing and improving over time.
    • On-the-job training is low cost.
    • It is best suited to jobs involving practical skills.
  • The main drawback is that the teaching is done by other employees, so bad habits could be passed on from others.
Off-the-job training

Off-the-job training

  • Off-the-job training happens away from the workplace, allowing employees to be taught a wider range of skills. They get to learn skills that aren’t just related to one specific task.
    • For example, it is common for managers to get training on leadership (what makes a good leader).
  • Off-the-job training is often taught by specialist instructors and this means that it may be higher quality training. But, this can make it more expensive than on-the-job training.
Jump to other topics
1

Business Activity & Influences on Business

1.1

Business Objectives

1.1.1Business Aims1.1.2Business Objectives1.1.3Business Objectives Change Over Time1.1.4End of Topic Test - Business Aims1.1.5Diagnostic Misconceptions - Profit
1.2

Types of Organisations

1.2.1Sole Traders & Partnerships1.2.2Limited Companies1.2.3Limited Liability1.2.4Unlimited vs Limited Liability1.2.5Not For Profit & Franchises1.2.6Multinational Companies1.2.7End of Topic Test - Business Ownership1.2.8Application Questions - Business Ownership1.2.9Diagnostic Misconceptions - Company vs Business1.2.10Diagnostic Misconceptions - Owners vs Shareholders
1.3

Classification of Businesses

1.3.1Sectors
1.4

Decisions on Location

1.4.1Location
1.5

Business & the International Economy

1.5.1Globalisation1.5.2Exchange Rates
1.6

Government Objectives & Policy

1.6.1Government Objectives1.6.2The Government & Business Activity1.6.3Interest Rates1.6.4Interest Rates - Calculations1.6.5Diagnostic Misconceptions - Recessions
1.7

External Factors

1.7.1External Factors
1.8

What Makes a Business Successful?

1.8.1Measuring Success1.8.2Reasons for Failure
2

People in Business

2.1

Internal & External Communication

2.1.1Communication
2.2

Recruitment & Selection Process

2.2.1Types of Employment2.2.2Recruitment Stages2.2.3Effective Recruitment2.2.4Legal Controls Over Employment2.2.5Diagnostic Misconceptions - Internal Recruitment
2.3

Training

2.3.1Training
2.4

Motivation & Rewards

2.4.1Motivation in the Workplace2.4.2Financial & Non-Financial Methods2.4.3End of Topic Test - The Workforce2.4.4Application Questions - The Workforce2.4.5Diagnostic Misconceptions - Money
2.5

Organisation Structures

2.5.1Organisational Structures2.5.2Centralised vs. Decentralised Structures2.5.3Tall & Flat Organisations2.5.4Functional Areas Within a Business2.5.5End of Topic Test - Org Structure
3

Business Finance

3.1

Sources of Finance

3.1.1Internal & External Sources of Finance3.1.2Factors Affecting Sources of Finance
3.2

Cash Flow Forecasting

3.2.1Cash Flow3.2.2Consequences of Cash Flow Problems3.2.3Cash Flow - Calculations3.2.4Solutions to Cash Flow Problems3.2.5Diagnostic Misconceptions - Cash Flow
3.3

Cost & Break-Even Analysis

3.3.1Costs, Revenue & Profit3.3.2Profit, Average Unit Cost & Interest3.3.3Costs - Calculations3.3.4Revenue - Calculations3.3.5Break-Even Analysis3.3.6Profit & Losses - Calculations3.3.7End of Topic Test - Finance3.3.8Grade 9 - Finance3.3.9Diagnostic Misconceptions - Fixed Costs3.3.10Diagnostic Misconceptions - Break-even
3.4

Financial Documents

3.4.1Financial Statements3.4.2Income Statement3.4.3Understanding Business Performance
3.5

Account Analysis

3.5.1Business Calculations3.5.2Gross Profit - Calculations3.5.3Net Profit - Calculations3.5.4Business Calculations 23.5.5Business Calculations 33.5.6Liquidity
4

Marketing

4.1

Market Research

4.1.1Market Research4.1.2Forms of Market Research
4.2

The Market

4.2.1Customer Needs4.2.2Satisfying Customer Needs4.2.3Market4.2.4The Competitive Environment4.2.5Market Segmentation4.2.6Market Mapping - Price vs Quality4.2.7End of Topic Test - Marketing4.2.8Application Questions - Marketing4.2.9Diagnostic Misconceptions - Competition
4.3

The Marketing Mix

4.3.1Price4.3.2Price Penetration4.3.3Other Forms of Pricing4.3.4Product Design4.3.5The Product Life Cycle4.3.6Extending Existing Products4.3.7New Products4.3.8Benefits and Risks of New Products4.3.9Promotion4.3.10Public Relations and Sales Promotion4.3.11Sponsorship & Social Media4.3.12Product Placements4.3.13Promotional Mix4.3.14Place4.3.15Place 24.3.16Place 34.3.17M-Commerce4.3.18Benefits & Drawbacks of M-Commerce4.3.19End of Topic Test - Marketing Mix4.3.20Grade 9 - Marketing Mix4.3.21Diagnostic Misconceptions - Decreasing Price4.3.22Diagnostic Misconceptions - Advertise vs Promote4.3.23Diagnostic Misconceptions - Social Media
5

Business Operations

5.1

Economies & Diseconomies of Scale

5.1.1Economies of Scale5.1.2Diagnostic Misconceptions - Economies of Scale
5.2

Production

5.2.1Production Processes5.2.2Flow and Batch Production5.2.3Production Efficiency5.2.4Technology & Production5.2.5Diagnostic Misconceptions - JIT vs JIC
5.3

Factors of Production

5.3.1Factors of Production
5.4

Quality

5.4.1Importance of Quality5.4.2Identifying Quality5.4.3Total Quality Management5.4.4End of Topic Test - Operational Decisions

Practice questions on Training

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    Which of these is unlikely to be an effect of increased staff productivity in service industries?Multiple choice
  2. 2
    How does training affect a workforce?True / false
  3. 3
    Which of these does not increase when employee training increases?Multiple choice
  4. 4
    What are the different methods of training?Fill in the list
  5. 5
    Which type of training is often done by a specialist instructor and tends to be more expensive?Multiple choice
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Diagnostic Misconceptions - Internal Recruitment

Motivation in the Workplace