Reference no: EM132192685

Tapping Unused Resources in Difficult Times Few companies have the courage to recognise that when business slows down it can be the right time for training. Nordenia USA is one such company. A few years ago Nordenia was in a rapid growth period, hiring new employees, expanding its workspace and adding new products. Karl Mindeman was hired at that time to identify training needs and develop training programs to keep up with the fast growth. There was a need for technical training, management skills development and training for new employees. The company had training grants and had the budget for training development but because everybody was so busy there was not much time to develop training programmes, However things changed recently. The economy slowed down and the company stopped hiring new staff. But instead of cancelling the training programmes during the difficult period, the management agreed with Mindeman that it was the perfect time to develop training programmes that would facilitate smooth expansion in the future. This decision ultimately would save the company money. There was not much money available for training but managers were less busy now. They had the time and the expertise. Instead of hiring external trainers Mindeman was given twelve representatives from each of the eight manufacturing departments to work sixteen hours a week for three months to develop course materials for new employees in every area of the company. The representatives documented what knowledge and procedures a person would most need to learn. The training materials were then translated into a computer-based training system. Mindeman’s team also created a structured twelve-week program for new employees to help them develop goals. Supervisors of new employees now have a checklist of key skills that need to be mastered. Compared to the previous week long buddy system where a new employee was assigned to a senior who had to find time to train the new employee and the learning was haphazard. Now, the training is very structured. The training program did not cost much to develop but has added significant value to Nordenia’s new employee training programme. Mindeman hopes that when business picks up and hiring begins again, the new programme will foster better prepared employees, a more consistent work environment and a reduction in turnover. (Source: adapted from Snell S., Bohlander G, Principles of Human Resource Management, (2010), 15th edition, Cengage Learning, pg 295-296) End of Case Study 4

(a) Unlike Nordenia’s approach to training during an economic downturn, most companies cut back on training during difficult times. Why is this so?

(b) Explain the strategic advantages of Nordenia’s approach to training.