EVERY ORGANIZATION MUST ADOPT ISO 10015 FOR ITS SURVIVAL IN THE COMPETITIVE BUSINESS MARKET

Introduction

The business environment is such that it has become highly competitive. This is largely because of advancements in technology. Some experts have asserted that the only constant thing in business is the inconsistency itself. Consequently, in order to meet this challenge, then companies must look for ways of training and fostering learning. (Wu, Liao and Wang, 2005) Additionally, they must ensure that this training is done effectively and that it translates into positive outputs for the companies. There are a number of impediments that can arise during the learning process within an organization and also during implementation. Consequently, organizations must look for quality assessment tools that can assist them in endeavor.

The purpose of the essay is to look at the validity of the ISO 100015 as an effective tool for promoting and sustaining competitive advantage. This will be done by analyzing both its structural and strategic advantages against a background of training, learning and development.

Background to study
In order to understand how IS0 10015 can enhance a company’s competitive advantage within the business market, it is essential to first place learning, training and development within the organizational context. In other words, there is a need to understand the benefits of proper learning, training and development within any given organization. This is because 1S0 10015 basically deals with assessment of training success.

Training and development within any company is essential in promoting the optimal utilization of a company’s human resources. Employees need to be treated as any other resource within the company. Since other conventional resources can be manipulated in such a way as to draw the maximum utility from them, then the same may be said of human resources. In order to ensure that human capital is geared towards the overall goals of a particular company, then there is a need to focus on how these employees can be trained or how they can learn. Additionally, training not only assists employees in meeting organizational goals alone; it also helps them in meeting their own goals. (Saner and Yiu, 2005)

Training and learning within any company is crucial in ensuring that there is adequate development of human capital. This is largely because training provides a comprehensive structure for development of both the technical and behavioral skills required for competitive company operation. Additionally, employees themselves are given ample opportunities for personal growth through this same endeavor. In other words, training and learning are win-win measures for both the company and the employees undergoing that training.

Most companies that have earned international recognition on their performance are those ones who have invested in the quality of intellect and also in the personality of their employees. When employees are equipped with these kinds of assets, then chances are that they may contribute towards better company performance and this is achievable through their own personal growth.

When companies engrain training and development within their company operations, then chances are that they may cultivate high levels of team spirit. In other words, training and development fosters collaboration between team members and employees respect and understand the issue of team work. This is an important aspect within the competitive business arena because most productivity within various enterprises does not just take part on an individual basis but it looks towards establishment of sound and collaborative teams in these institutions. Additionally, this makes employees become more enthusiastic about the learning process. (Woods, 1993)

Training and learning are also instrumental in improving organizational culture by creating an atmosphere of learning. Such an attitude is extremely advantageous to any particular company owing to the fact that information technology is continually changing. Consequently, when the culture within a certain company is such that it is always willing to embrace change, then chances are that that particular enterprise will be well on its way to boosting its performance levels. Organizational climate is also another dimension that can be adequately improved when training is part of the program. For instance, when employees frequently go through training and development, then chances are that they will have a positive attitude towards their leaders and also towards their peers. This kind of positivity boosts overall performance and makes a company achieve its overall objectives more easily.

Working environments are instrumental in determining how a particular kind of employee can meet the needs placed upon him by a respective company. If the working environment is such that it encourages a merger between employee goals and organizational objectives, then this definitely boosts employee productivity. In close relation to the latter fact is that development and training can go a long way in enhancing the overall ability of a particular company to provide a safe working environment for their employees. This makes a company to ‘move with the times’ and also prevents some of the tragic occurrences that arise out of a lack of prevention on the part of the employer.

It should also be noted that the issue of morale is instrumental in this process too. When employees are constantly learning, they feel better equipped to take on the challenges that arise within their respective company. Besides that, they also feel that they deserve to hold the positions that they do. Training and learning is therefore a strong motivator within the workplace environment.

Companies that have taken up learning and development as part of their strategic direction have also made a name for themselves in the global arena. One such company is Motorola which has been associated with sound quality systems for training. This is a good public relations tool because it shows that a company cares about its personnel through its commitment towards their overall development. Other organizations such as Tesco UK are committed towards employee development within the organization. Through such endeavors, Tesco and Motorola have shown that training and learning can contribute towards a positive public image. (Wu, Liao and Wang, 2005)

In order for companies to boost their leaders, then they need to invest in training and development. Through such initiatives, companies can achieve the following for their leaders;
• Better attitudes
• Loyalty
• Motivation
• Leadership skills
• Other aspects for successful managers

Learning, training and development foster a company’s productivity. This is seen through better quality of work. Additionally, it is seen through the way work gets done. For instance when leaders are adequately trained, then the decision making process will be more effective than expected. Besides that, chances are that the process of carrying out organizational policies within these respective enterprises where training has taken place will be more effective than in other companies.

Research problem and research objectives
Research conducted by a number of organizations such as the IEG have found that there is a significant gap that exists between the learning that occurs during training and the implementation of what has been learnt in the workplace. (Woods, 1993)This implies that the learning process during training is flawed. Besides this, it has also been shown that certain employees may take part in a training program and may even absorb a large share of what they are supposed to learn. However, these same employees may have a difficult time trying to put into practice what they have learnt in training. This means that learning can occur but translating it into organizational change is another challenge all together. This leads to research problem number one which is; “how can trainees apply what they have learnt to the organization?”

Time and time again training may be done in such a manner that fails to address the needs of an organization. Consequently, there is a need to provide training in a comprehensive manner by embedding it into the organizational capacity. More often than not, employees lack support for implementing the learning process. This brings out another research problem i.e. “How can organizations provide support to trainees for application of what they have learnt?” in other words, this research question will target addressing institutional gaps that exist between the training process and application that have been brought on by lack of resources within specific companies.

Literature review
ISO 10015 is a tool for assessment of the quality of training. This is an international standard that was released during the year 1999 for companies in the European continent. However, now ISO 10015 is an essential part of the organizational performance for a series of companies in Asia, the US, Australia and other parts of the world too. This tool was created with the major aim of addressing certain institutional challenges that companies face with regard to training and they include;
• Lack of criteria for checking program effectiveness
• Lack of criteria for choosing training approaches
• Uncertainty in standards for the development of trainers
• Lack of involvement of line managers in the planning process of training
• Lack of focus in training programs as most of them lack the ability to directly improve company performance (Yiu & Saner, 2005)

Given these challenges, the ISO 10015 tool was created with the purpose of standardizing the training process and this can be achieved through the implementation of the following phases;
1. Analyzing performance problems
2. Defining training needs
3. Designing and planning training
4. Providing adequately for the training process
5. Evaluating training outcomes
6. Monitoring and improving

These steps are designed with the ultimate goal of evaluating, planning, implementing and controlling the development process within an organization. This is definitely a necessary part of any company’s success given the fact that it safeguards the investments in training. Most companies normally conduct in-service training to meet their specific needs. This is a sharp contrast to educational training that may be general in nature. However, the in service training has been done by most companies without necessarily looking at the link between business planning and development of competence. The ISO 10015 tool, through its six steps can therefore assist in the process of putting these training goals into practice. (Yiu, 2005)

A properly managed learning and development program should be such that it can meet the future needs of a particular organization. However, this does not mean that training should be limited only to internal sources; instead, it should be a merger between the external processes and internal goings on within a particular company. It should also be noted that if the ISO 10015 is managed and implemented properly, then an organization will have transformed itself from being reactive to becoming proactive in its development process. Additionally, when companies are dedicated towards the ISO 10015 standard, then they usually treat their training as part of their quality management system. Consequently, when training is constantly, monitored and improved through ISO 10015, then training will have been managed and implemented properly within any given organization.

Due to advancements in technology, many companies must keep up with their competitors by training their employees or by upgrading their levels of competences. Research shows that most parts of the world spend huge sums on training indicating that this is an important driver for success. In the year 2001, it had been found that employers within the United States spend approximately fifty six dollars on training. This can be translated to approximately seven hundred dollars per employee. However, it should be noted that the latter figures may have reduced given the credit crunch biting the US economy. Irrespective of the latter issue, these investments show how companies realize the importance of their human resources as crucial investments. (Hauser and Clausing, 2003)

In training and education, experts agree that it is often very difficult to evaluate the return on investment for training one’s personnel. Consequently, most companies have found themselves in such positions where they are conducting efficient training but at the same time, these may be ineffective. Consequently, it should be noted that the field of learning, training and development cannot be evaluated through other conventional methods such as those ones that are used in the process of evaluating production performance. In other words, effective training and development cannot be assessed by out put numbers e.g. number of persons trained. Instead, greater emphasis should be given to the process of improving company productivity or performance, the acquisition of skills and know how needed in running the company or improving behavioral competencies required by personnel to carry out their duties and their responsibilities.

It should also be noted that training outcomes can either be assessed on a national level or an enterprise level. In the former mentioned scenario, results are measured by looking into the economic and social developmental outcomes within a particular country. In the latter scenario, results are measured by assessing productivity levels within a certain company. Consequently, if the quality of training is adequately assured, then companies, trainees and employers themselves will be well on their way to meeting the growing demands for training. This will also be done against the background of narrower training budgets and growing pressures for producing trainees who can then be retained within a particular organization. (Wu, Liao and Wang, 2005)

Given all the latter needs, many companies and businesses alike have asked themselves what the best quality system would be for assessing their learning, training and development process. In answering this question, a number of companies have looked at the strengths and weaknesses inherent in most of the available systems. For instance, there are advantages of using ISO 9000 over the European Foundation of Quality Management standard. Given the weaknesses in the latter mentioned quality systems, there was a need to create another standard that would be added into the ISO family known as the ISO 10015. This was a way in which precision could be added into the assessment of in service training. Consequently, through this management tool, one can be able to improve their overall company performance by looking at ways in which this can be done effectively.

After understanding what the ISO 10015 is all about, then it is instrumental to then evaluate the need for effective training within organizations and what makes up such sound training. Research has shown that prior to the mid twentieth century, knowledge levels had only increased by one hundred percent between 1900 and 1950. However, thereafter, it had been shown that knowledge kept doubling every after five or eight years. At the turn of the century, research shows that in order to stay abreast of goings on within particular industries, then companies must invest in knowledge growth every after two to three years because this is the equivalent time in which knowledge grows for particular companies. Shown below is a figurative illustration of the ISO 10015 standard.

Source: ISO 10015: 1999 p 2

Given these challenging in business, there is a need for formal education to provide the means with which to meet these high training and learning needs. However, experts assert that there is an underlying gap between what is provided in learning institutions and what is required within the business environment. What used to be considered as a period of mass production has now ended because information technology has caused consumers to be very selective of their commodities. This means that companies always need to look for new solutions to their production processes. Additionally, they also need to provide product and service mixes that make them stand out since the business environment has become highly competitive.

All the latter issues cannot be achieved without inclusion of human resources. In fact, employees have now become instrumental parts of many companies’ strategic plans. These days, some of the traditional factors such as land, capital and labor are no longer as important as they used to be some thirty years ago. Instead, knowledge is becoming the point of focus today. But because knowledge can only be carried forward in human minds, then investments in human resources are the key driver for success within the global competitive market. It can therefore be said that through training and development, businesses can then create conditions for proactive behavior and mutual exchanges necessary for sustaining competitive advantage within the business arena.

The latter assertions have brought out a relatively new concept known as the learning organization. A learning organization is one in which the basis for transformation is based on the acquisition of experience and knowledge within the business arena. Such companies are those ones which are dedicated towards the permanent process of transformation and they normally include all members of the organization during learning.

In order to understand how the ISO 10015 standard applies to certain organizations, it is imperative for one to understand what makes up a successful training and development strategy within an organization. For effective training and development, organizations need to create an atmosphere of creativity. This is what will make that particular company stand out from its peers. Besides this, the larger a particular company is, the more training and development they will require for their workforce. Nowadays, education is not a reserve for privileged members of society but it is now part of the business environment. (Chan and Wu, 2002)

There is a logical sequence which organizations must adhere to when they are instituting training procedures. First of all, knowledge must be acquired. This should then be followed by creativity which cannot survive without innovation. Eventually when all these facts are adhered to, then a company can be able to achieve competitive advantage. Innovation is imperative in learning because without it then businesses will never be able to keep up with competition. Shown below is a summary of the logical sequence
Knowledge

Creativity

Innovation

Competitive advantage

Despite all the latter assertions, it should be noted that not all knowledge acquired is actually beneficial to a company. In fact knowledge is only useful to an organization of it is aligned to that company’s goals and objectives. There is no such thing as more important knowledge than others because when knowledge does not directly create value for a particular organization, then it is as good as being obsolete. (Akao, 1990)

Effective training and development allows the institution of certain kinds of methods that are aligned with particular needs of institutions, not only should effective training encompass acquisition of skills, but it should also be in a position to encourage entrepreneurship. This is something that would catapult a company to the position of leadership within its industry. Additionally, effective learning and training should be such that it promotes the idea of adopting to change. In other words, employees need to be equipped for the dynamic business environment. This also means that it ought to prepare employees for the decision making process since most of the challenges inherent in organizations actually fall in line with these respective needs and challenges.

Findings
If an organization is to take up ISO 10015, then it will have a heightened chance of surviving in the competitive business area. The reason why this standard should be chosen other than other standard is that it serves two major functions. First of all it provides transparency in the training and development process because outcomes are measured against well known, documented and set parameters. The second advantage is that ISO 10015 adds accuracy in training and development. This is because the system allows for collection of hard data that can be easily quantifiable. Consequently, the method allows for sound restoration of training challenges.

It should also be noted that this quality system standard also provides an avenue against which companies can meet their long term needs. First of all, it allows the convergence of business objectives that can only be achieved through learning and development. Additionally, it provides a platform against which a reflective process can be carried out. This is achievable through the services of a third party that may then be able to conduct an audit of the process. (Yiu, 2005)

ISO 10015 can provide companies with some of the most effective ways of handling challenges through the use of certain mechanisms that are inherent in its structure. First of all, through the strategic axle structure, it is possible for an organization to identify the gaps inherent within the organization and those ones that can be met through training. By defining the training methodologies to meet these gaps, then organizations can be well on their way to sustaining competitive advantage. In other words, this approach will go a long way in meeting research objective number one which is ‘to investigate how employees can apply hat they have learnt to the organization’. Since this standard provides a route which allows the determination of what is really needed in an organization, then training may be done in line with these findings and thus providing the first step toward application of what has been learnt in the process of training. (Saner and Yiu, 2003)

The latter standards are also instrumental in the process of ensuring effective learning and development through another element of structure known as the quality wheel. Here, companies are expected to design programs, meet the needs of training and evaluate the quality of output that emanates out of that training. Through such approaches then organizations can meet both research objective one and two. In the process of designing a program for training, then a company may be able to recognize some of the challenges that may arise in the training process. Also, by providing for the training program, then companies will be meeting research objective two which deals with the lack of support from companies with regard to training. Evaluation and monitoring is also instrumental in dealing with research objective two because it ensures that companies are able to identify some of the underlying problems within their training program and its application thus ensuring that most of them fall in line with expectations laid out in the training objectives.

Another element within the ISO 10015 standard that can sustain an organization’s competitive position within the business market is the dollar monitoring aspect. Here, organizations may be in a position where they can gauge the success of their training efforts by measuring some of the outputs of the program against the dollars spent in the process of instating these changes. This is usually achievable by setting up training targets. Consequently, this structural aspect can assist in meeting research objective one since the company can identify what is missing in its training program and then look for ways of implementing them.

The ISO 10015 standard is crucial in creating and sustaining competitive advantage because it allows for measuring three sets of data. The first set entails measurement of the overall internal processes involved in training. The second set deals with measurement of the decision making processes that are associated with the business objectives and performance gaps that are linked to the training process. Lastly, the standards entail measurement of four levels outcomes that include effectiveness, efficiency, outputs and outcomes. (Yiu, 2005)

Through the latter mentioned sets, it is then possible for companies to set up planned actions, reactions and assess satisfaction with the training program. Consequently, it can be said that through these measurements, companies can place their training program in context and thus look for ways of improving it. This enhances knowledge and competitive levels.

Secondly, the ISO 10015 standard also goes a long way in ensuring that learning does occur in an organization. This means that it effectively addresses impediments to learning by the measurements mentioned above and looks for ways of dealing them. Consequently, the quality system ensures that a company is transformed from being a reactive one to a proactive one that continuously embraces new knowledge for sustainability in business.

This particular standard can also assist companies through its application and implementation process in business. In other words, it is through this method that one can be able to establish some of the needs that are prevalent within certain organizations and then look for effective ways of dealing with them. This is also related to assessment of the business impact of training. The latter standard provides an avenue for measuring hard data on business impact and thus showing what training has done for a business. This also means that returns on investments can also be duly assessed through this method since both the quality and dollar aspects of the training process are looked into with systemic accuracy. (Wu, Liao and Wang, 2005)

In order to understand how this is normally achieved, it is instrumental to calculate the return on investment for training through the following formulae
Benefits to cost ratio= (Annual benefits)/ (annual costs)
Return on training investments = (Net annual benefits/ net annual costs) * 100

The ISO 10015 standard can also go a long way in placing an organization within the competitive arena because it facilitates alignment of organizational goals and objectives with training. This standard does not merely operate in isolation. Statistics have shown that most of the successful companies are those ones in which most of the investments and business decisions are made with regard to the overall objectives of that company. This standard embraces such a perspective because it supports strategic aspects of training and development.

The latter standards can also boost a company’s competitive levels because it gives equal opportunities to all the four aspects of training cycles in various organizations. This allows for systematic interventions rather than the random and haphazard interventions that may be prevalent in other quality systems or other assessment methods. Besides that, it also allows for effective feedback that is in fact actionable. Most other assessment systems may poses vague methods of conducting feedbacks thus placing organization in a dilemma as to what needs to be done. However, with the ISO 10015 standard, this problem can be eliminated quite easily.

It is important to note that the latter mentioned standard does not focus on activities as the main drivers for training. Instead, this method deals with customer orientation and is therefore process centered. Consequently, it can be said that the method will go a long way in ensuring that customer needs are satisfied within specific organizations and this will also help in the process of creating and sustaining competitive advantage.

It should also be noted that through the ISO 10015 tool, organizations can be able to boost the overall strategic functions of their human resource which was an aspect that was not easily achievable during other times. (Kirkpatrick, 1999)

Conclusion and recommendations
The ISO 10015 standard can be an effective tool for ensuring that companies meet their training objectives and hence their overall objectives. This is possible because through effective monitoring provided for in the program, one can be able to determine which parts of training require change and thus work towards improving them.

Additionally, the method facilitates alignment of organizational goals and objectives with the training needs for a company. This can go a long way in creating a learning organization which continuously embraces change. Another important way in which the latter tool can boost competitiveness is in the fact that the method focuses on the customer and the process of training rather than the activities involved. This gives it a holistic approach and thus heightens the chances of success.

References

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Kirkpatrick, C. (1999): Technique for evaluating training programs; Journal of Training and Development
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Saner, R. and Yiu, L. (2003): ISO 10015 – A strategic instrument in human capital development, retrieved from http://www.adequate.org/ accessed on 28 Dec 2008
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The author of this article is a holder of Masters in Business Administration (MBA) from Harvard University and currently pursing PhD Program. He is also a professional academic writer. ResearchPapers247.Com>