Temitope Abayomi-Banjo                   Training and Development

04097115                3BUS0101

In view of the fact that Investor in People is a voluntarist initiative, means there reasons for recognition, it is appropriate to investigate the reasons why organisations become involved with IiP. Alberga et al., (1997) stated that one possible explanation concerns how it has been promoted as a tool for improving organisational performance or increasing employee motivation. Taylor and Thackwray, (1996) mentioned that a further claim made by promoters of the Standard is that it will help in the development of a learning organisation. In the course of these claims, IiP has come to be viewed as a tool for business improvement that is complementary and used in both public and private sectors. However, Bell et al. (2001)and Down and Smith, (1998) offer further reasons why organisations seek IiP accreditation, several of which are not necessarily related to the development of a highly skilled workforce through improvements in training activity. In other words, the decision to seek IiP accreditation may be as much about internal organisational politics rather than its purpose, therefore this essay would focus on the issue that says IiP is more promoted among the public sectors than the private sectors (looking mainly at small businesses) and also issues within the IiP training activity. Facts will be stated concerning these issues and suggestions will be made in order for all sectors to be equal in acquiring this recognition

One of the issues involved in IiP is the fact that while large minorities of workplaces have secured IiP accreditation according to Cully et al., (1999), with thirty-two per cent of workplaces with 10 or more employees having accreditation, there is evidence that the take-up of the Standard across different sectors of the economy is uneven. According to Alberga et al., (1997) this is despite the fact that the Standard was initially founded on the assumption that a single definition of good training and development practice would be applicable across industrial sector and organisational size categories. As mentioned by Ram, (2000), research carried out in the 1990s indicated that some employers were not engaging with the Standard because of the reputation it had acquired as an overly bureaucratic and paper-based system. This was most seen in relation to the small business sector, where accreditation rates were lower than in companies employing more than 50 people. Ashton and Felstead, (2001) agreed to the facts that it is generally accepted that small companies are less likely to offer workplace training. The low rate of accreditation in small businesses therefore calls into question the value of the initivies. Therefore increasing the amount of smaller organisations will became a key objective of IiP.

Several reasons have been put forward as to why accreditation rates are lower in small businesses. For example, Hill and Stewart (1999) argue that training activity in small businesses is reactive and unplanned rather than planned and formalised, meaning that IiP is not necessarily appropriate. These authors also found small businesses non involvement in the accreditation because of time pressure, cost implications, lack of clarity as to its essential nature and lack of expertise in terms of being able to introduce it.

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Curran and Blackburn, (2000) mentioned that the Training and Enterprise Councils (TEC) funding from central government in the early 1990s became increasingly based on outputs, resulting in a ‘payment by results’ type system. This method of performance management, within which funding was in part dependent on the number of IiP recognitions achieved, encouraged TECs to focus on companies that were most likely to be able to secure accreditation. According to Mawson, (1996), by the mid-1990s, it was being suggested that TECs were ‘cherry picking’ employers deliberately targeting larger companies that already had a substantial number of the policies and procedures ...

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