Proposal

Submitted to:
Miss. Sobia
Submitted by:
Muqadas Hussain
(8352)

Program: MBA (P)

Section: B
Semester: 5th
Topic: Methods of
Training

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 Selection of Training and development method
for employees performance in SMEs sector

Abstract:

The present study has identified that which are effective methods for training
to enhance the abilities, effectiveness and efficiency of employees. Furthermore this
study has enabled us to know about the different criteria used in organizations. Since
training is an important function of HRM so to understand the importance of different
approaches and methods of training needed for the employees.
This study has examined the issue of offering learning materials to small and
medium-sized enterprises (SMEs) in a manner that recognizes their working
environment, mode of operation and preferred learning methods. We provide some
evidence consistent with hybrid model which enables us to know how on the job training
reduce the minimum wages, reduce the training investments of workers who were taking
wage cuts to finance their training, while increasing the training of other workers. Then
we analyzed how training design should be made to cope with the problems faced by
those employees who belong to different areas. While the development and utilization of
human resources is emerging as a core policy issue in all countries in the 21st Century,
development and utilization of female human resources is also a policy issue that is
importantly emphasized in order to improve the national competitiveness and quality of
life of female.
The results would be generated through Quantitative method of research.
Using this method I have first justified the problems, obtain different point of views of
participants through close ended questions. At the end validity has been checked through
different methods that will rely on the participants, past researchers and from the reader.
If any loophole will be founded then further research can be conducted. More over this
study has provided the basis for the future research in this area.
Key words: Face to face training or distance training, minimum wages and on the job
training, work force diversity and how female can be trained.

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Introduction:
We has examined whether Face to face or distance training, minimum
wages and on the job training, Training based on workforce diversity and how female can
be trained by using different methods. Through face to face training employees can be
directly interacted and in distance training we can communicate them while they are
working on their workplace. Employee mistakes can be rectified corrected and their
abilities can be improved through on the job training in SMEs sector.
Rapidly changing global markets have led to unprecedented growth
in small business sectors. Firms that fall within the category of ‘small and medium-sized
enterprises’(SMEs) include micro enterprises employing under 10 people, small
enterprises of 11–50 people, and medium-sized enterprises of 51–250 people. Small
firms are, nevertheless, seen as a remedy for the increasing levels of ‘downsizing’ in
larger firms and the trend to subcontract work out of house. This has increased the
importance of micro-enterprises in the Irish economy.
In the standard human capital theory, as developed by Becker (1964),
Ben-Porath (1967), and Mincer (1972), a large part of human capital is accumulated on
the job, and workers often finance these investments through lower wages. A binding
minimum wage will therefore reduce workplace training, as it prevents low wage
workers from accepting the necessary wage cuts (Rosen, 1972). Build on our previous
work, Acemoglu and Pischke (1999b), which showed that a compression in the structure
of wages can induce firm-sponsored training.
The evidence suggests that minimum wages appear to have little effect
on training investments for low-wage workers. Training design based on race, age,
gender, religion, sexual orientation, or socioeconomic status, you are more likely than
ever to find yourself in a culturally diverse organizational setting (Carnevale & Stone,
1995; Tsui & Gutek, 1999). The assorted talents of a diverse array of individuals can
provide many benefits for organizations, such as improved individual and organizational
performance, enhanced internal and external customer service, and an improved bottom
line (Cox, 1994; Cox & Beale, 1997; Hayles & Russell, 1997; Kossek, Zonia, &
Young, 1997; Society for Human Resource Management & Fortune, 2001).

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 Now the question arises that what is the most appropriate method to train
the employees to achieve high expectations related to their workplace performance. Since
the training is the major function of HRM so it is necessary to understand which method
of training is more effective to have positive impact on employees’ performance. The
target audience focuses on the new employee entering the field, however, as training
increasingly becomes used to help to company achieve its strategic goals, middle and
lower managers should be involved to some degree.

Purpose Statement:
The purpose statement of this study is:
The purpose of this study is to examine the Selection of Training
and development method for employee’s performance in SMEs sector. The purpose of
using quantitative data is to develop a relevant format of survey to obtain the specific
information.

Objective of the study:

The overall objective of this study is to survey for the effect of
different training methods which can have strong effect on the performance of the
employees within the small and medium enterprises. Moreover it aims to understand how
to design and implement the different specific training designs to enhance the capabilities
of employees and hence to increase their performance.

Research questions:
1. What is the effect of face to face training or distance training on the performance of
employees?
2. How training design based on workforce diversity can have intense effect on employee
performance?
3. How employee performance can be affected with On the job training?
4. What is the influence of different training methods on female employee performance?

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Literature Review:
What method of training and development should be used to enhance
the performance of employees? On this debate many point of views has been made.
Many researchers have argued about the importance of different methods for the training
of employee. From this study we can analyze that whether face to face or distance
training, on the job or minimum wages, how training based on work force diversity is
beneficial and to know how female can be trained by using different methods.
In the past, too many government-sponsored initiatives have presented
learning resources that have been wasted because the target small business audience has
failed to make use of them. LSSB project and Limerick project Are used to reach at a
conclusion. In LSSB project paper, online via the Internet medias and in Limerick
project, Limerick City Enterprise Board undertook an extensive survey of micro-
enterprises in Limerick city. Both projects find out that what Small business needs and
want. By relating new learning to existing knowledge, through self-regulated exercises or
discussion, the learner is able to gain a deeper understanding of the subject. Both the
face-to-face and distance learning approaches discussed here adopt the constructivist
approach to learning; learners are encouraged to build their own knowledge through
activities and the sharing of experiences. This is achieved through collaborative
exercises, either online or in the classroom.
Becker’s theory of human capital predicts that minimum wages should
reduce training investments for affected workers because they prevent these workers
from taking wage cuts necessary to finance training. In contrast, in noncompetitive labor
markets, minimum wages tend to increase training of affected workers because they
induce firms to train their unskilled employees. Finally, we provide some evidence
consistent with this hybrid model. A binding minimum wage will therefore reduce
workplace training, as it prevents low wage workers from accepting the necessary wage
cuts (Rosen, 1972). Although existing evidence points to a negative effect of minimum
wages on training, we argue that this evidence suffers from a number of problems. We
use the National Longitudinal Survey of Youth (NLSY) for the period 1987 to 1992.
Our empirical results show almost no evidence of a reduction in training
in response to minimum wages. But, they also do not provide strong support for our

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alternative model. Overall, the evidence suggests that minimum wages appear to have
little effect on training investments for low-wage workers. Both (Leighton and Mincer
1981 and Hashimoto 1982) have found this to be the case and concluded that minimum
wage laws lead to less training. But, since a minimum wage increases the wages of low
paid workers, it can reduce wage growth without affecting training. Schiller (1994)
reports a similar finding using later data from the NLSY by comparing the training
incidence of minimum wage workers with those earning higher wages.
The federal minimum wage was unchanged between 1981 and 1990, but
various states imposed their own minima above the federal level during the late 1980s.
We use two complementary approaches to identifying the impact of minimum wages on
training. The first one, which we find most compelling, looks at the training of workers
who are directly affected by an increase in the state or federal minimum wage. The
second approach looks at the relation between training and a measure of how binding the
minimum wage is across regions.
The most direct way to estimate the impact of the minimum wage on
training outcomes is to look at workers who are actually affected by changes in the
minimum wage. One measure for mwirt would be whether the actual wage of an
individual is close to the minimum wage for the region and time period.
This research focuses on the development of the working ability of
employed female workers with respect to the subjects of policy on female human
resources. According to research already conducted on the effect of educational training
on female employees in overseas corporations, female employees who participate more
actively in training activities illustrate a greater level of satisfaction in employment and
devotion to their work. According to Hall & Bright (1994), half of working female in
England illustrated a positive response to a program designed only for female, while the
other responses were negative.
On the basis of previously conducted research and the outcomes of
inquiries, corporations need to implement the following policies in order to activate
female employee training. Firstly, there is a need to assess the educational demands of
males and females, who have different circumstances and characteristics from each other.

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Secondly, there is a need to increase the proportion of female staff within training
departments and to provide support that enables them to play a responsible role.
Learning through a network among female employees, small group
activities, and formation of mentoring relationships. The assorted talents of a diverse
array of individuals can provide many benefits for organizations, such as improved
individual and organizational performance, enhanced internal and external customer
service, and an improved bottom line (Cox, 1994; Cox & Beale, 1997; Hayles &
Russell, 1997; Kossek, Zonia, & Young, 1997; Society for Human Resource
Management & Fortune, 2001).
Diversity can improve organizational effectiveness. Organizations that develop
experience in and reputations for managing diversity will likely attract the best personnel
(Carrel et al., 2000). Diversity requires a type of organizational culture in which each
employee can pursue his or her career aspirations without being inhibited by gender,
race, nationality, religion, or other factors that are irrelevant to performance (Bryan,
1999). Managing diversity means enabling the diverse workforce to perform its full
potential in an equitable work environment where no one group has an advantage or
disadvantage (Torres and Bruxelles, 1992). Diversity in the workforce can be a
competitive advantage because different viewpoints can facilitate unique and creative
approaches to problem-solving, thereby increasing creativity and innovation, which in
turn leads to better organizational performance (Allen et al., 2004). For organizations,
this means that their market share, efficiency, human capital, international
competitiveness, and level of innovation will dependant in part upon their ability to
effectively manage a diverse workforce both within and across organizational boundaries
(Barker and Hartel, 2004; Dass and Parker, 1996; Kandola et al., 1995, Strauss and
Mang, 1999).
Managing diversity can create a competitive advantage. Potential benefits of this
diversity include better decision making, higher creativity and innovation, greater success
in marketing to foreign and domestic ethnic minority communities, and a better
distribution of economic opportunity (Cox, 1991; Cox and Blake, 1991). According to
one study (Watson et al., 1993), culturally diverse groups relative to homogeneous
groups are more effective both in the interaction process and job performance.

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 The diversity competencies that follow offer such a framework by
identifying the specific skills and abilities needed to perform effectively in culturally
diverse settings. The competencies include self-awareness, diversity knowledge, and
multicultural communication, conflict management, empowering environments,
professional development, recruitment and selection, and coaching and mentoring.
Hence by applying the Diversity Intervention Model it is concluded that training based
on workforce diversity can give more benefit.

A Quantitative research:
A quantitative method is one in which the researcher tends to base knowledge
claims on positivism grounds. It employs strategies of inquiry that involve collecting data
either simultaneously to best understand problems. The data collection consist of numeric
information (John W.Cresswell, p 1920).

Research Design:
We use the triangulation design from the mix method design. The purpose of
this design is to best understand research problem. The intent in using this design is to
bring together the differing strengths and non-overapplying weaknesses of quantitative
methods with those of qualitative methods. This design is used to when a researcher
wants to directly compare and contrast quantitative results with qualitative data.

Methodology:

 Philosophical Assumptions:
Positivism paradigm will be used in this study. It
focuses on understand the ideology of multiple participants on their locations and
work place.
 Approach:
Quantitative approach will be used as it based on Positivism
paradigm. It integrates quantitative approach by collecting numeric data. From
quantitative data we will examine ourselves which type of training design should be
used to enhance their performance.

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 Sampling:
• Population:
SMEs Sector
• Sample Unit:
Managers and their Employees.
• Sample size:
Data will be collected from through questionnaires among 30
participants.

• Sampling Procedure:
In this research Snowball method of non-probability sampling
and Simple Random Sampling of Probability will be used. As in this
technique after making initial contract with a small group who are related
to our research topic and then use their reference for further contacts.

Research Questions:
• What is the effect of face to face training or distance training on the performance
of employees?
• How training design based on workforce diversity can have strong influence on
employee Performance?
• How training can be made more effective by delivering the specific training?
• How employee performance can be affected with on the job training?
• What is the influence of different training methods on female employee
performance.
TimeLine:
March, 09 to
March, 10
Validity:
To check the validity of the research the procedures that rely on the
participants, the researcher, and the reader, external standards, such as judges, past,
research and by using statistical calculations.

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 Research methods for Data Collection:

 Data collection:
Data will be collected Concurrent. On the bases of interpretation
quantitative data will be gathered (surveys).

 Contact Method:
I will contact with the participants through: Telephone and
Personal meetings.
 Instruments:
I will use questionnaires for survey.

 Analysis:
I will use SPSS for the quantitative data.

Reliability and Validity:

Validity and reliability are the issues which are arises in

quantitative research. For this I will use three main strategies for the quantitative research

such as:

 For Quantitative Research:

 Face Validity
 Convergent Validity
 Test-retest Reliability
Face validity is the validity where measure apparently reflects the content of the concept
in question. It might be established by asking other experienced or expert people in the
field. A test has convergent validity if it has a high correlation with another test that
measures the same construct. If there is a high correlation between a questionnaire and
observation. For the quantitative data I will use SPSS software for the analyses. The
reliability estimate determined by comparing the scores obtain from two successive
measurements.

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Researcher resources and skills:
Primary, secondary and Teritory resources will be used to collect the data and
to make interpretations. In primary resources Reports and thesis, in secondary resources
Journals and books, and in territory resources Catalogues, dictionaries and Abstracts will
be used.

Ethical Consideration:
• The individuals of study will be briefed about the nature of the study before
collecting data.
• Convey the purpose of the study that will be described to the participants.
• The data provided by the Participants will be kept confidential.
• Do not ask the questions which are harmful for the participants.
• During data collection involve gaining the permission of individuals in authority
to provide access to study participants at research sites.
• Need to respect research sites so that the sites are left undisturbed after a research
study.
• Data, once analyzed, need to be kept for a reasonable period of time.
• In the interpretation of data, provide as accurate information.
• Signature of both the participant.

Limitations:
• Based on previous research.
• This study has made an assumption that the factors like face to face and distance
training, on the job training and training based on workforce diversity directly
affect the employee performance.
• The time to conduct this meta-analysis is also very limited.

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 References
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Press.
2. Rosen, Sherwin (1972) “Learning and experience in the labor market,” Journal
of Human Resources 7, 326-342.
3. Leighton, Linda and Jacob Mincer (1981) “The effects of the minimum wage
on human capital formation,” in Simon Rottenberg (ed.) The economics of
legal minimum wages. Washington: American Enterprise Institute for Public
Policy Research,155-173.
4. Hall, C., and D. Bright (1994): Human Resource Development and Senior
Female Managers in the Northeast, Executive Development, 7(3), pp. 9-12
5. Cox, T. (1994). Cultural diversity in organizations: Theory, research &
practice. San Francisco: Berrett-Koehler.
6. Hayles, R., & Russell, A.M. (1997). The diversity directive: Why some
initiatives fail and what to do about it. Alexandria, VA: American Society for
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