A Decision Model for Outsourcing Training Functions
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Transcript of A Decision Model for Outsourcing Training Functions
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A decision model for outsourcing training functions :
Distinguishing between generic and firm-job-specific training content
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Training:
Teaching/Developing oneself with skills and knowledge that relate to
specific useful competencies. Training has specific goals of improving
one's capability, capacity, productivity and performance.
To make a successful strategy implementation organization need to train and
develop their employees constantly.Many reputed and established company invest considerable amount in training
Motorola niversity
The !roton vile !enter of "#
Trilogy niversity
Introduction
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Outsource Trainingis an arrangement inwhich one company provides training anddevelopment services for another companywith a certain agreement.
When company chooses its own systems ortools for training that will be In-housetraining.
Outsource Training Vs. In-houseTraining:
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Benefts or Outsource or In-house Training
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#mployee training is one of the mostly outsourced management
functions. Diversified training re$uired for efficient employees.
T!# will %rovide useful information for choosing Training &ystem.
y analyzing(Firm Size, Asset Specificity of training, frequency training,
availability of training service in market
)n )merican *esearch shows that(
Practice o Training Outsourcing
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Transaction cost economicsResource-based view of the firmEconomies of scale eectsFirm SizeDevelopment of the market for training services
Administrative innovation theory
Development of the market for training services
Theories
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Hypotheses
Size of
Firm
Investment andexpertise in
training
Freqency oftraining
training as sorce ofcompetitiveadvantage
!sset speci"city intraining
#arket
development fortraining services
$erceivedbene"ts
from
otsorcing trainingservices
%xtent ofotsorcin
g in
trainingservices
&'
&(
&)
&*
&+
&,
&-
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Srvey was condcted in reece '// &0 directors were selected for the
stdy.
1ota sampling was sed and it wasattempted for the sample strctre tore2ect the poplation strctre3 in terms of"rm activity and size.
Research Methodology:
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igure !represents the classi"cation ofthe sample companies by activity
sector.
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igure "represent the classi"cation ofsample companies by size3 means nmberof the fll4time employees.
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I#$I#%&
%xplained throgh two #odels #easrement #odel
Strctral #odel
0egression 5oe6cient7
0elationship between Dependent 8ariable andIndependent 8ariable.
Indicates changes
5orrelation7
9ow variables move in relation to each other.
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Measure'ent 'odel or(o)- and co'pany-specifc training
Measure'ent 'odel orgeneric training
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&tructural 'odel or generictraining
&tructural 'odel or(o)- and co'pany-specifc
training.
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+n the case the weight of outsourcing decision analysis is given not on costconsiderations but to gain $uality benefits .
The outsourcing of training functions is done primarily because the
companies do not have sufficient resources i.e. e-pertise investment to
provide for.
ut large and medium sized companies which have e-perience and general
internal e-pertise in providing training services do not outsource training
functions.
+t is because they think their employees will not be ac$uiring the abilities
re$uired to withstand or overcome company challenges and fulfill their
re$uirements if they take training from e-ternal sources.
*onclusion
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It is preferable to provide training internallyand to develop internal traininginfrastrctre and expertise when 7
0 there are very specific company needs, know how,
structures, systems, culture, ob1ective and strategies
that need to be supported through company specific
training.
2 internal e-pertise in providing training is ade$uately
developed and the company has put much effort andresources in order to develop this function in3house.
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It is best to otsorce training fnctions when7
': 9he company seeks to by in new ideas3
scarce expertise and an ;ot of the box