Free Essay Sample: Managing Performance through Training and Development

Magna International is a global automotive with headquarters in Aurora, Ontario Canada. The company is a leading supplier and the largest automotive parts manufacturer in North America concerning sales of parts. The company supplier's auto parts to general motors, Chrysler LLC, and Ford Motor with different operating groups like Magna Steyr, Magna Exteriors, Magna mirrors (Magna, 2018). The company has employed more than 173 000 workers with operations in more than 29 countries. Since its incorporation in 1961, the company has designed, developed and manufactured automotive parts and systems, assembled components and engines for sale to manufacturers of cars and trucks.

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The success of Magna International can be explained by a company culture that focuses on employee training and development. There is no better way of addressing weaknesses in the organization other than through training and development (Larsen, 2017). Training programs are an opportunity to strengthen employee's skills and bring workers to a level of similar skills and knowledge. This ensures that weaknesses in the company are reduced and that employees can stop depending on others for tasks they can finish on their own. Magna has invested significantly in an employee by developing programs to assist them in acquiring the skills and knowledge needed to achieve their full potential (Magna, 2018). Besides, Magna has provided information to enable employees learns about job requirements. Workers can compare the compensation of wages and benefits with those provided to competitors. To ensure total commitment, motivation, and engagement, Magna adjusts total compensation if employees find that it is not competitive.

Training and development provide an opportunity to increase knowledge and skills of all employees. Although investing in training and development can be expensive, it offers a wide range of benefits that make its cost worth of investing (Chopra, 2015). Other than improving performance, training is the key to modeling responsible leaders and increasing competitiveness in the company. Training and development show that Magna values her employees and helps polish a supportive working environment. From the information available on the company website, Magna International is an employee based company. Special attention has been given to workers skills and knowledge to ensure they remain responsible and take on their roles seriously. Magna has established an employee's charter to provide a framework for fairness in the workplace using six simple principles. The multinational has ensured employees competitiveness and productivity by providing employee assistance programs and counseling in addition to training and development.

Magna is the only supplier of auto motives that have established systems knowledge skills in the entire vehicle. The technology has allowed Magna to automatically respond to disruptive technology and place them to the global marketplace. Being a mobility technology means that employees must be well equipped and trained to use this technology to achieve efficiency. The company has adopted military-level radar technology and applied to vehicles to change how people think about transportation (Magna, 2018). This technology has become the foundation of driven-driven cars. This can explain why Magna has directed significant resources on performance improvement through training and development.

Despite the strengths possessed by Magma, the company uses a legacy business model that is rigid to inelastic to change. This model can lead to the loss of competitiveness caused by the failure of digital competence (Rachel, 2017). Magna controls nearly all aspects of production and has left little room for outsourcing. Legacy model is tailored for specific settings and resists change to the dynamic business world.

References

Chopra, Banu (2015). Importance of training and development in an organization. Retrieved from: https://economictimes.indiatimes.com/small-biz/hr-leadership/people/importance-of-training-and-development-in-an-organization/articleshow/48739569.cms

Magna (2018). Magna International. Retrieved from: https://www.magna.com

Kim, S. K., & Min, S. (2015). Business model innovation performance: When does add a new business model benefit an incumbent?. Strategic Entrepreneurship Journal, 9(1), 34-57.

Larsen, H. H. (2017). Critical issues in training and development. In Policy and practice in European human resource management (pp. 107-121). Routledge.

Rachel, Nischke (2017). What is a legacy system and how does it affect the business model? Retrieved from: https://chaione.com/blog/legacy-system-affect-business-model/