How is the Training Needs Analysis Process in Multinational Companies to Determine Effective Training?

Selecting the right training for managers and employees will have a positive impact on the company. To ensure that the training selected is effective and on target, a training needs analysis process is necessary.

Every company has a different training needs analysis process. The larger the company, the more streamlined the training needs analysis process.

However, a 1991 study in the Journal of Personal Selling and Sales Management found that most organizations tend to rely more on top management to organize training, from selecting employees to determining the budget for that training.

Further research also found that training typically conducted in organizations does not reflect the company's strategic objectives, resulting in efforts that do not contribute back to the organization because training needs are not properly analyzed.

Therefore, this discussion will explore the training needs analysis process in multinational companies with global reach to determine effective training.

Training Needs Analysis Process

In the book "Training and Business Industry" by William McGhee and Paul W. Thayer, it is stated that there are three levels of analysis to determine the appropriate training for a company.

Organizational Analysis

This is the earliest step in the training needs analysis process, the primary goal of which is to understand training needs based on the organization's overall goals and strategies.

What is the organizational analysis process? It is a process of reviewing the organization's internal environment, including factors that can influence employee performance and its alignment with the organization's goals, strategies, and objectives.

At this stage, the organization focuses on analyzing the company's direction and priorities for a specific period, so that planned training can be tailored and optimally aligned with the company's strategic needs.

This process is crucial to ensure that training is not merely reactive but also supports the achievement of the long-term vision.

Task or Operational Analysis

The next, more specific process is conducting a task or operational analysis, commonly known as job analysis or task analysis.

This process examines a specific job to determine the skills, knowledge, and attitude requirements necessary to improve expected job performance.

By understanding what employees need to accomplish in their jobs, the organization can design targeted training to address specific performance issues and improve operational effectiveness.

Individual Analysis

The third step is more specific: an individual analysis to determine whether the person currently in their position possesses the skills, knowledge, and attitudes needed to optimally perform their duties.

Information regarding individual performance and training needs is typically collected through interviews and surveys with subject matter experts, managers, and high-performing employees.

This individual analysis ensures that training is provided to the right person for optimal results.

Has your company implemented all three training needs analysis processes?

Training Needs Analysis Process in Multinational Companies

Now you will learn how the training needs analysis (TNA) process is implemented in multinational companies.

This analysis process is based on research conducted by students from University Teknologi Malaysia who studied the implementation of the TNA process in multinational companies in Malaysia.

Years of Practice

Multinational companies generally have been implementing the TNA process for many years, with experience varying from 5 to more than 10 years.

This experience demonstrates that TNA has become an integrated part of human resource management to ensure effective and targeted training.

TNA Mode

There are two types of TNA modes implemented. The first is a formal TNA, which is implemented in a structured and systematic manner as part of the training planning process.

The second is an informal TNA implementation mode, which is conducted ad hoc or based on urgent needs without formal procedures.

Of the two types of TNA methods, formal TNA is certainly more common to ensure alignment with global corporate strategy.

Data Collection Methods

Companies always make decisions based on data, including when determining appropriate training for employees. Several data collection methods are used in TNAs by multinational companies.

Surveys and questionnaires are methods of distributing flyers or forms containing questions to employees and managers to obtain an overview of training needs.

To obtain a more in-depth overview, interviews are also conducted with management, subject matter experts (SMEs), and training participants.

In addition, direct observation of work activities is another data collection method.

There is also analysis of documents such as performance reports and HR data. Companies can use this mixed method to obtain comprehensive and accurate data.

Selecting Training Participants

The company will naturally select training participants. In determining the right training participants, the company will involve the following roles:

• Employees who will participate in the training.
• Line managers who understand the needs and performance of their teams.
• Subject matter experts (SMEs) who master specific material or work processes.
• The HR department acts as a facilitator and evaluator.

Participant selection is tailored to the objectives and level of training to be provided.

Training Needs Analysis Process

The following are the main steps in the TNA process in multinational companies that can be replicated by other companies. This process is carried out iteratively to ensure the relevance and effectiveness of the training:

• Identification of organizational goals and business strategies.
• Analysis of task and operational needs.
• Assessment of individual training needs.
• Collection and analysis of data through various methods.
• Development of specific training recommendations.
• Implementation and evaluation of training results.

People Who Conduct TNA

The parties who conduct TNA in multinational companies are as follows:

• HR/Training & Development/Learning & Development departments with expertise in training needs analysis.
• Relevant line managers who provide input on their team's immediate needs.
• External consultants to provide objective perspectives and specific specializations.
• Subject Matter Experts (SMEs) as sources of technical and training content.

Training Needs Analysis Measurement

The final step that multinational companies must take is to measure the success of the TNA through evaluating participant feedback, analyzing pre- and post-training performance comparisons, assessing the achievement of training targets, and monitoring the impact of training on organizational productivity and effectiveness.

This measurement is crucial for refining the TNA process and ensuring that training investments deliver optimal results.

Adopting the Training Needs Analysis Process in Your Company

Has your company implemented the TNA process correctly? Are the results and impact of your training programs aligned with its objectives?

If your company wants to adopt the training needs analysis process mentioned above but is unsure where to start, you can collaborate with Prasmul-Eli to provide a customized assessment program that can be tailored to analyze the training needs appropriate for your company.

Optimize your company's budget with appropriate and effective training to support your company's goals.