Training and development in puma a major german multinational company

Puma is a major German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 by Rudolf Dassler, the company is based in Herzogenaurach, Germany.

The company is known for its football shoes and has sponsored the footballers, including , Johan Cruijff, Enzo Francescoli, Diego Maradona, Lothar Matthäus, Kenny . Puma is also the sponsor of the Jamaica track athlete Usain Bolt who won three gold medals by breaking the men’s 100m, 200m and 4x100m world records in the 2008 Beijing Olympics. In the United States, the company is probably best-known for the basketball shoe it introduced in 1968, which has the name of New York Knicks basketball star Walt “Clyde” Frazier, and for its partnership with Joe Namath.

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The company also offers lines shoes and sports clothing, designed by Lamine Kouyate, Amy Garbers, and others. Since 1996 Puma has intensified its activities in the United States. Puma owns 25% of American brand sports clothing maker Logo Athletic, which is licensed by American professional basketball and association football. Since 2007 Puma AG has been part of the French luxury group PPR.

The quality of employees and their development through training and education are major factors in determining long-term profitability of a small business. If you hire and keep good employees, it is good policy to invest in the development of their skills, so they can increase their productivity.

Training often is considered for new employees only. This is a mistake because ongoing training for current employees helps them adjust to changing job requirements.

Purpose of Training and Development

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Reasons for the growth and development of personnel include

Creating a pool of readily available and adequate replacements for personnel who may leave or move up in the organization.

Enhancing the company’s ability to adopt and use advances in technology because of a sufficiently knowledgeable staff.

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Building a more efficient, effective and highly motivated team, which enhances the company’s competitive position and improves employee morale.

Ensuring adequate human resources for expansion into new programs.

Research has shown specific benefits that a small business receives from training and developing its workers, including:

Increased productivity.

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Reduced employee turnover.

Increased efficiency resulting in financial gains.

Decreased need for supervision.

Employees frequently develop a greater sense of self-worth, dignity and well-being as they become more valuable to the firm and to society. Generally they will receive a greater share of the material gains that result from their increased productivity. These factors give them a sense of satisfaction through the achievement of personal and company goals.

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The Training Process

Selection of Trainees

For a small business, this question is crucial. Training an employee is expensive, especially when he or she leaves your firm for a better job. Therefore, it is important to carefully select who will be trained.

Training programs should be designed to consider the ability of the employee to learn the material and to use it effectively, and to make the most efficient use of resources possible. It is also important that employees be motivated by the training experience. Employee failure in the program is not only damaging to the employee but a waste of money as well. Selecting the right trainees is important to the success of the program.

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Training Goals

The goals of the training program should relate directly to the needs determined by the assessment process outlined above. Course objectives should clearly state what behavior or skill will be changed as a result of the training and should relate to the mission and strategic plan of the company. Goals should include milestones to help take the employee from where he or she is today to where the firm wants him or her in the future. Setting goals helps to evaluate the training program and also to motivate employees. Allowing employees to participate in setting goals increases the probability of success.

Training Methods

There are two broad types of training available to small businesses: on-the-job and off-the-job techniques. Individual circumstances and the who, what and why of your training program determine which method to use.

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On-the-job training is delivered to employees while they perform their regular jobs. In this way, they do not lose time while they are learning. After a plan is developed for what should be taught, employees should be informed of the details. A timetable should be established with periodic evaluations to inform employees about their progress. On-the-job techniques include orientations, job instruction training, apprenticeships, internships and assistantships, job rotation and coaching.

Off-the-job techniques include lectures, special study, films, television conferences or discussions, case studies, role playing, simulation, programmed instruction and laboratory training. Most of these techniques can be used by small businesses although, some may be too costly.

RECESSION

off the job technique used by the puma such as lectures, special study and more more facilities are also provided to their employees with the up to date techniques and as per the recession had the bad effect on the economy and the company also took up the corrective measures to get rid through this hard time . and as per the company was spending long process of training and to cut the cost it has lesser the time of the training process. puma reported second quarter revenues of €2.91 billion, a 19% increase from the €2.45 billion in 2009. Net income, on the other hand, soared 1300% to €126 million from €9 million the year before. The company attributed this success primarily to the 2010 FIFA World Cup. At present the company has workforce around 103000-105000 workforce and the company turnover rate is around 2%-5% which is very less by global standards. Puma have dedicated centres for training their entry level. Reebok significantly outsources the same. Also training is more vocational where in focus is on teaching individuals tools rather than fundamentals (however their WASE program for BSc folks is an exception). I know it will be strongly objected to by Reebok folks but I suggest they do a quick poll.

REEBOK OVERVIEW

Reebok International feels comfortable stepping out onto any surface. The company has long been at home in sporting arenas as a top US maker of athletic shoes, behind NIKE. In addition to its namesake sportswear and accessories, Reebok sports Rockport and Reebok shoes and caters to hockey aficionados through its Rebook unit. It operates more than 220 retail stores. Reebok, which has been credited as igniting the aerobics craze, sponsors sports stars and has taken strides to boost its fashion quotient. Its Your Move ad campaign aims to spur customers to make Reebok part of their personal fitness goals. adidas has owned Reebok since 2006. The Reebok Stadium is the home stadium of English Premier League football club Bolton Wanderers, and is located on the Middlebrook Retail Park in Horwich, in the Metropolitan Borough of Bolton, Greater Manchester.It is commonly known as ‘The Reebok’. It has four stands: The Bolton Evening News Stand at one end, the South Stand at the other end, the West Stand at one side of the pitch and the Nat Lofthouse Stand at the other side. The stadium has a hotel built into it giving stunning views of the pitch from some of the rooms.

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Training methods

Off-The Job Training:-

Reebok has used the off the job training. School or Institutions is established to provide training to all types of persons. A program of training is designed to suit the need of the job which the trainee occupies. Some different courses are arranged for separated group employees.

There are several methods of Off-The Job Training

•Role Playing

•Lecture Method

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•Conference Method+

•Vestibule

Effect of recession

It was stated that more than 950,000 staff – found that the downturn had adversely affected the learning and development strategy of 59% of the organizations surveyed.

Two-thirds of these responded by reducing their training spend, with 63% having to cut back on learning and development, 30% reducing in-house training, and 24% seeing training output reduced. However, 65% of organizations have stepped up their efforts to develop employee skills and competencies in the face of the downturn, often with reduced resources.

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Ninety-five per cent said aligning employee skills with business goals was a major concern when planning learning and development activities. Other major influences included improving competence and technical skills (83%); upgrading line managers’ people management skills (82%); and establishing effective leadership (78%) (see chart, right).

Almost three-fifths (59%) have had to reassess their training methods in a bid to minimize costs, while 20% have embarked on an employee retraining exercise to aid redeployment in their organization. The median training spend per employee was found to be £334.

In terms of the types of training activities used, the most common method for executives and directors was the use of external, one-off conferences and seminars (81%), followed by coaching and mentoring by external practitioners (60%), and help from colleagues (56%). But in terms of effectiveness, coaching was the clear winner, cited by 45% of respondents. It is also becoming an increasingly popular development method for managers, used by 65%.

For non-managerial staff, OFF-the-job training was the most popular method (94%), followed by informal help from colleagues (94%), and in-house classroom-style training (92%).

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Predictions for the next expenditure review were gloomy, with 32% expecting training spend to fall (compared with 16% in 2007), and 18% anticipating a rise (compared with 39% in 2007). Forty-three per cent believed their training budget would remain the same.

Analysis of puma and Reebok

Both the companies doing good as the training and development process for their employees and huge amount of their budget was allocated to their training and development. But the Reebok was more good in providing all the above training and so, we come to the conclusion that Reebok more good than puma but during the recession there is more effect on the Reebok so according to the budget the Reebok is good than the puma and the quality of the Reebok is much batter than the puma .. puma has come through the recession as more faster than Reebok and the techniques which are applied were more effective than Reebok but as Reebok has also been awarded as the best employer but the attrition rebate of puma was very less as compare to the desired standards and also the training techniques of Reebok were not so successful than puma and from the data it is clear that Reebok has done good job in getting trough the hard time without leading to unemployment.

Suggestion

According to me the puma is going good but if we see the according to the recession the puma is going good but after the recession the Reebok is much better than the puma as per we see the budget and all the Reebok is good on the another side the both companies use the off the job training which is very good for their employees because of the off the job training Reebok perform good than the puma.

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