Decision making regarding access to training and development in medium‐sized enterprises

Abstract

Purpose -The purpose of this paper is to develop an understanding of factors that impinge on managerial decision-making processes regarding employee access to structured training and development (T&D) opportunities that are at least partially funded by the firm. Design/methodology/approach -Semi-structured interviews incorporating the Critical Incident Technique (CIT) were conducted with 14 managers of medium-sized enterprises based in Perth, Western Australia. The interviews explored decisions managers have actually made regarding employee access to T&D and yielded 42 useable critical incidents that served as the unit of analysis. Findings -There were three key findings: first, employee access to T&D was initiated primarily by managers; employees did not exhibit developmental proactivity. Regulatory requirements and performance deficits were the main factors triggering T&D. Second, decisions regarding employee access to T&D were influenced by a wider range of factors than the decision making factors that commonly feature in literature that discusses "barriers" to T&D in SMEs. Third, decision makers tended to neglect the evaluation phase of the decision making process and engaged in post-decisional justification.Research limitations/implications -The study holds a number of lessons that are based on an analysis of the authors' experiences of using the CIT. The lessons are potentially important for researchers who will be using the technique to study similar topics in the years ahead. Originality/value -This study addresses the lack of research into factors that affect managers' decisions when they consider providing employee access to firm-sponsored structured T&D opportunities. It also assesses the effectiveness of the CIT as a tool for studying managerial decision-making processes regarding employee access to T&D opportunities.

Human Resource Development in SMEs: A Systematic Review of the Literature

“…The term ‘training’ is frequently used but is rarely defined. It is generally conceptualised (n = 10) as a planned and systematic effort (Coetzer et al ., ) and as a formal activity such as a course (Bishop, ; Castany, ; MacMahon and Murphy, ; Martin et al ., ; Westhead, ). Kock and Ellström () use the term competence development; however, this definition is quite congruent with definitions of formal training in that it refers to internal and external training courses as well as informal activities.…”

“…The use of technologically‐enabled HRD interventions such as e‐learning are also not widespread in SMEs (Admiraal and Lockhorst, ; Harris, ). In the main, evidence indicates a prevalence of and preference for informal and idiosyncratic HRD approaches in SMEs (Coetzer et al ., ; Kitching, ). This has led many researchers to conclude that SME HRD is inferior or rarely takes place at all (e.g.…”

“…Our review does highlight that studies have found positive relationships between both formal and informal HRD activity and performance outcomes (Greenidge et al ., ; Jones, ; Panagiotakopoulos, ; Ram et al ., ). Benefits such as increased cost‐effectiveness, quality, innovation and ability to adapt to change are cited (Beaver and Hutchings, ; Lange et al ., ; Macpherson and Jayawarna, ), as are the ability to meet regulatory requirements (Coetzer et al ., ) and greater flexibility (Collins and Smith, ; Matlay, ).…”

“…Questions that arise include the following: In the SME context is there greater scope for individual agency and personal choice when it comes to HRD practices? Bishop (2008) and Coetzer et al (2012), for example, found that the subjective orientations of employees exert an important influence on the shape of an SME's HRD activity. A range of different interests and expectations amongst two key stakeholder groups may mediate HRD in SMEs in particular; owner-managers undoubtedly exert considerable power, however, their influence will be tempered by employee attitudes, motivation and orientations, both positive and negative.…”

Problematizing HRD in SMEs: A “Critical” Exploration of Context, Informality, and Empirical Realities

“…The literature highlights the importance, prevalence of and preference for informal and idiosyncratic HRD in SMEs, where practices are embedded within the context of normal, daily operations and routines (e.g., Barrett, ; Beaver & Hutchings, ; Coetzer, Redmond, & Sharafizad, ; Kitching, ; Susomrith & Coetzer, ). SMEs adopt ad‐hoc and reactive approaches to day‐to‐day operations and HRD is driven by operational needs and priorities (Hirschsohn, ).…”