Corporate Universities: Improving Company Profitability

Why Corporate Universities are critical to Company Improvement

Question:

Discuss about the Exclusive Analysis Of Corporate Universities.

Currently, many organizations are on the run to promoting appropriate practices that ensure their survival within the competitive market fields. So as to gain the higher shares within the market space, a company must ensure it is updated regarding the latest policy or even strategies, technological trends and also ensure that it produces quality services and products. Training of the Human resource is one way to ensure relevance within the market spheres. Since the humans are a very integral part of any organization, training promotes better capacity, higher quality and advanced performance within an organization. Moreover, training is used as a means of knowledge acquisition of skills, knowledge, and abilities as a result of a perceived deficiency in the worker's performance that needs to be improved and addressed, (Armstrong, M., and Taylor, S., 2014). The main reason for such a program within the functioning of any company or organization is that it ensures the company is at its profitability form since the customers and the company's investors are satisfied with the quality of their products and services. Therefore, adequate training seems not only a waste of the company's resources in terms of time and resources but as survival technique within the overgrowing competition, (Sung, S. and Choi, J., 2014, p 393-412).

It is for such reasons that the multinational companies such as the Toyota Company, the Boeing Company, and the McDonald's company, the Motorola Company, the Apple Company and the Disney Company amongst other companies are adopting the use of the corporate universities. Technically, the corporate universities are simply educational entities that are tools for helping the organizations they serve. The universities serve to ensure the goals of a company are achieved by simply providing a high-level training to the company's employees and developing their abilities within the company, (Anderson, V., et al., 2014). In as much as there are many other ways, a company can use to reach its goals the use of corporate universities is one of those ways only that it is the only way that ensures the company achieves its goals by simply training people. Therefore, the paper is a discussion as to why it is critical to use the Corporate Universities as a way of improving the company. Additionally, the paper will look at the reasons as to why if the idea of training is not properly done then can act as a setback in the organizational success, (Fee, M., 2014). Lastly, the paper also lists examples of the companies that have adopted the idea and how it operates within the organizations.

Just a general question to ask now that the paper has given a rough sketch on the definition of the corporate universities, what makes companies using the corporate universities have the upper hand regarding competitive advantage than other firms that do not buy the idea

The corporate universities promote the awareness of the employees to their affiliate organizations, (Sung, S. and Choi, J., 2014, p 393-412). It simply lies in the fact that the programs that are provided by the corporate universities are clearly aimed towards achieving the company's main goals, missions not forgetting policies. As the traditional universities simply teach on a general culture about the general business environment and the problems it encounters, the corporate universities teach on such challenges that affect the affiliate institution and provide solutions that are suited to enhancing the institution's operations and main objectives therefore, making the workers more aware of the activities that are surrounding their workplace. Training provides suitable solutions regarding the challenges that they face during working hours. In one way or another, the universities, therefore, play a vital role in ensuring profitability by promoting awareness of the employees.

Benefits of Corporate Universities to Company Profitability

Additionally, Corporate Universities ensures the profitability of the company, (Knowles, M., et al., 2014). The learning investments are connected as a tool that enhances an absolute and a deep orientation to the objectives of the company. Therefore, not seen as a waste of resources by the company's management but translates the whole idea into cost-saving. Moreover, the corporate university can help in adding income to the company when its administration decides to offer classes to the outsiders in return for some money in the form of fees. Such money can be used as capital to the company. When the employees of the company are well trained, the company is the advantage of acquiring more quality products and services that in most cases attract more investments and customers. Such investments that are attracted by the quality of products and services are critical to ensuring that the company is enjoying as much profit as possible same applies to the capital the university can solicit for the company in the form of fees. Hence, the reason as to why many companies are adopting such universities to nurture their workforce skills and also help to profits for the company.

Corporate universities promote quality in production. Another factor that makes the corporate university as not like the ordinary traditional universities is that they act as an infrastructure as to where we find information and knowledge, (Dhar, R., 2015, p 419-430).  The corporate universities are very important in the creation of skills and knowledge that are very relevant to the company's area of operation. As such, they are very useful in the creation of knowledge that is vital to ensuring that the company produces more quality goods and services to its customers. Unlike the traditional universities which simply provide general knowledge regarding a particular field. For instance in the corporate university gives the employees a touch of the possible production, (Storey, J., 2014). It does not give a theoretical analysis but an actual concept through which products quality can be improved. Hence the reason as to why companies are trying to incorporate the idea so as produce more quality product which in turn will promote the profitability of the company.

Similarly, the corporate universities promote management efficiency. Management issues have been a key element to ensuring the success of any company as such it should be very efficient, (Stone, R., 2013). The corporate university promotes such efficiency by simply teaching the top management on the steps they can take in case of any challenge. Moreover, the corporate universities also help in teaching the junior and senior workers on their roles within the company. Therefore, ensuring that everybody is very acquitted with relevant skills and the ethics behind each role one is assigned to do, (Dale, B., 2015). As such gives the management an easier time regarding making decisions regarding the functions of a department. It can also easily enable the management in the follow-up of the employees since everybody knows the task is supposed to undertake. As such the universities enable proper governance and smooth running of the company since there will be no conflicts on work allocation hence ease the burden to the management and also foster quality in production. Hence the reason as to why the corporate universities are very instrumental in the operations of a company.

Examples of Companies that have adopted Corporate Universities

Moreover, the corporate universities promote the cultures of an organization. Since the universities focus its scope in the operations of the company, it helps in the retaining of the company's cultures, (Delahaye, B., 2015). Such cultures are very important since they play a vital role in the unity of the employees within a workplace. As such, the corporate universities help in nurturing the new recruits to such cultures as such the cultures are maintained within an organization. Such cultures are a motivating feature to the employees since they give the employees that sense of belonging to an organization therefore making it difficult for the company to lose its skilled employees, (Alfes, K., et al., 2013, p 330-351). Therefore making the corporate universities very important to the company that ensures its proper implementation.

However, if the implementation of the university in regards to the organizational operations is not considered, the universities can be very detrimental in the performance of a firm.

The corporate university can be very expensive to incorporate into a company. For a corporate university to be implemented within a firm, a lot of expenses have to be catered for from the establishment to staffing and the day to day expenses, (Sung, S. and Choi, J., 2014, p 393-412). For instance, courses have to be prepared, skilled and able personnel have to be employed, and locations have to be set up. Moreover, the aspect of training is also time-consuming since the training cannot be conducted in just one day. Another key thing to consider is the aspect of management and running of the universities which pose a potential problem. For instance, to find a person who is in charge of the programs, graduations and the credits that are related to the company's main goal is tough. As a result, the company can incur a lot of unworthy expenses with an aim to finding an efficient management, (Alagaraja, M. and Li, J., 2015, p 4-23). Therefore, the nature of the training should be properly considered about the expected returns after the training. Since a company is to run on profits but not on deficits and losses that can be as a result of improper implementation of the training programs.

The corporate universities are used in the training of the employees of many companies globally. Below is a discussion of some of the universities which are used in such training.

The university was established in 1999.  The university had Paul Willamsen as the manager for the curriculum development who was experienced in the automotive sector before joining Toyota. The university offers over 400 courses to around 8500 employees of Toyota within the United States, (James, R., and Jones, R., 2014, p 2174-2191). The programs are primary web at times seminars based since there is need to cut the cost of acquiring a location. However, the programs are not fixed since employees join the courses about their own time and needs. The courses are automotive-tech based insights which give a deep understanding of vehicles. But learning at Toyota goes beyond technical knowledge courses also provide information about the lean manufacturing that has been the reason for Toyota's success. In seminars, the lean approach is explained with plants simulators so that new employees can get familiar with this philosophy.

In 2008, the Apple Company hired Joel Podolny who was useful in the founding of the Apple University. The project by the company, Apple, was aimed at promoting profitability, (Heracleous, L., 2013, p 92-99). The objectives of the university were to carry on the philosophy of its founder, Steve Jobs. It is of such a trait that distinguished Apple from most of its competitors. Podolny worked hard since he had understood what was expected of him. He crafted a curriculum of programs to be practiced, taught by top executives, amid which a required course and exciting are called "What makes Apple Apple." It is such training that has been attributed to their recent success, (Chikhale, M., and Mansouri, M., 2015, p 283-293).

The Disney University (DU), is located in North Centre Drive, Lake Buena Vista, Florida. The DU is an international training program focused on providing a chance to learn more insights about Disney heritage, tradition, a personal and professional development which are unique in the entertainment sector not for kids only. The university has professionals who are mandated to developing such skills that are required in the company. The program promotes skills that are efficient and accommodates the diverse and expanding audience. The company has introduced new technologies in the recent years such as the eLearning and the virtual classrooms amongst others, (Hale, K., and Stanney, K., 2016). Such technology is as important since it is aim is to implement the idea of the classical class sections and also save on cost that might be incurred in terms of time.

In conclusion, the use of the corporate university is a smart option so as to ensuring training of employees within a company. As such, companies should promote training of their workforce so as to make sure that; their cultures are preserved, they maintain profitability, and they produce quality products to their clients. It is such importance amongst others discussed in the paper that a company should ensure proper implementation of such training opportunities to their employees. Without proper implementation, the training is hazardous to the company as well as the paper has shown above. It is such training that the company can enjoy its profits and also remain relevant in the competitive market.

References.

Alagaraja, M., and Li, J., 2015. Utilizing institutional perspectives to investigate the emergence, rise, and (relative) decline of corporate universities. Human Resource Development International, 18(1), pp.4-23.

Alfes, K., Shantz, A.D., Truss, C., and Soane, E.C., 2013. The link between perceived human resource management practices, engagement and employee behavior: a moderated mediation model. The international journal of human resource management, 24(2), pp.330-351.

Anderson, V., Garavan, T. and Sadler-Smith, E., 2014. Corporate social responsibility, sustainability, ethics and international human resource development.

Armstrong, M. and Taylor, S., 2014. Armstrong's Handbook of human resource management practice. Kogan Page Publishers.

Chikhale, M.M., and Mansouri, M., 2015. An Agile and Collaborative Framework for Effective Governance to Enhance Management in Large-Scale Enterprise Business Systems: The Case of Apple Inc. Global Journal of Flexible Systems Management, 16(3), pp.283-293.

Dale, B., 2015. Total quality management. John Wiley & Sons, Ltd.

Delahaye, B., 2015. Human resource development. Tilde Publishing.

Dhar, R.L., 2015. Service quality and the training of employees: The mediating role of organizational commitment. Tourism Management, 46, pp.419-430.

Fee, M.C., 2014. Human resources management.

Hale, K.S., and Stanney, K.M. eds., 2016. Advances in Neuroergonomics and Cognitive Engineering: Proceedings of the AHFE 2016 International Conference on Neuroergonomics and Cognitive Engineering, July 27-31, 2016, Walt Disney World®, Florida, USA (Vol. 488). Springer.

Heracleous, L., 2013. Quantum strategy at Apple Inc. Organizational Dynamics, 42(2), pp.92-99.

James, R. and Jones, R., 2014. Transferring the Toyota lean cultural paradigm into India: implications for human resource management. The International Journal of Human Resource Management, 25(15), pp.2174-2191.

Knowles, M.S., Holton III, E.F. and Swanson, R.A., 2014. The adult learner: The definitive classic in adult education and human resource development. Routledge.

Stone, R.J., 2013. Managing human resources. John Wiley and Sons.

Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

Sung, S.Y. and Choi, J.N., 2014. Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations. Journal of organizational behavior, 35(3), pp.393-412.