Designing An Effective Training Program
Authors: Lamb Craig F. 
Published: March 2010

Training programs are developed to achieve the objective of improving the skills of employees in their current jobs, and preparing those employees/or the tasks associated with the next job on their career ladder. Design of such programs there/ore requires proper assessment of the work to be done (job analysis) in combination with the assessment to the persons to be trained (needs analysis). This paper discusses the results of the design of two training programs, one in an oil company and the other in a service company. Strengths and weaknesses of each program design are discussed.

Introduction

The 1980s were a turbulent time for the petroleum industry due to the general instability of the price of oil. This turbulence has been reflected in downsizing of companies, and a restructuring of the industry through mergers and acquisitions. The result is that the older technical professionals, who in the past were able to help develop the careers of new graduates just entering the industry, are no longer there. Consequently, companies must develop training programs to train new professionals for their current and future jobs, and to train existing professionals in areas of new technology developments which will aid them in being more effective in their jobs.

Training has, in the past, been viewed differently by different companies. In poor economic limes, it is one of the first things that is often cut as budgets are pared, A survey undertaken in 1985 further confirms the variations in expenditures related to training. Of thirteen companies surveyed, five had no estimates available of their training costs. Of the other eight companies, training budgets varied from 0.3% to 5% of annual salaries. The average costs for training for those eight companies was 1.8% of salaries. This data was thought to reflect industry training activity over the previous five years. No figures are available for the current distribution of training expenditures, but companies are becoming more aware of the necessity to treat training as an investment in their employees. The increasing cost of training is forcing organizations to review courses to ensure that they get the biggest return for the money spent.

Lamb and Dugan(l) reviewed career development programs in the petroleum industry. They concluded that such programs can be beneficial both to the employing organization, and to the employees. An integral part of any career development program is training and development. These activities are designed to help the organization improve the skills of its employees, first, to increase the level of competence in their present positions; and second, to prepare employees to perform tasks associated with the next job on their career ladder. During the first few years of an employee's career, it is necessary thattraining and development be very structured. After that time, the employee will develop "career anchors"(2) which will direct him/her into either a management or a technically-oriented career path. At that time, training programs can become more individualized and designed to support the career path chosen by the individual.