Page 239 - DMGT518_TRAINING_AND_DEVELOPMENT_SYSTEM

Training and Development System

Notes 14.1 Training Issues Resulting from External Environment

The various environmental forces introduce changes and thus the training needs of the
individuals, change according to the changes in the job and the organisation as a whole. It is
commonly accepted that the areas of change, which have major impact on organisations, fall
into four main categories: economic, political, social and technological.

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Caution It is to be remembered that without the proper understanding of the business
environment, the assessment of the training need is not useful.

1. Economic Changes: There are two types of economic changes:
(a) Short-term: These operational changes may only affect a department or an individual
by changing a small part of process.

(b) Long-term: Long-term drivers will have a strategic effect on business needs and fall
into four main categories:

 Growth rates: Drastic changes in the underlying rate will exert a pull on
training needs: more money to spend; more goods and services being bought;
more need for a trained workforce.
 Local and world marketplaces: It makes sense that the larger the marketplace,
the bigger the opportunity to sell and the grater the need for a trained
workforce to meet its demands.
 Communities and neighbouring countries: Being part of community may
increase demand through protectionism, but it also creates a need to overcome
multiple languages and cultural differences.
 Competition: An industry fails in one part of the world and it is possible to
expand existing business to plug the gap, by means of a buyout, or and M&A
strategy.

2. Political Changes: This includes:
 Legislation: Changes in health and safety.
 Trade relations: Improved union laws lead to better working practices.
 Public spending: More or less on defence spending, social security or health.

 The ability to live peacefully internally and with neighbouring countries.
3. Social Changes: It includes:
 Personal Security
 Women’s Right

 Religion
 The Environment
 Health and Safety
 Population and Demographics

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