Trainingand Development

PAPER GUIDELINES:

In this paper, you will use APA Format and are tasked with discussing how you would run a training and development department in a large organization. This means that you will apply concepts and theories from class to support your decisions regarding how the department operates. For example, we know that some types of training work well online whereas face-to-face is better in other contexts. So, you would want to explain what technology you would use for different types of training and why. Of course, there are many topics you can choose to cover from the course, so you can limit your focus to 3-6 areas you’re most interested in. Many decisions made regarding the best training and development methods is somewhat subjective in nature.

The purpose of the paper is to have informed opinions, based on research from the book or peer-reviewed journals, as to how you would run different facets of the training and development department. For instance, it gets difficult to measure performance in complex jobs because there’s not a simple output measure such as a number of products produced. So, if measuring performance is more subjective, how can you ensure fairness? Other topics to discuss could be how you would conduct performance appraisals for example. How would you get the most out of a performance appraisal in terms of development? What does research show works? How does a leader maintain a healthy relationship with subordinates throughout the appraisal process? Of course, you can cover the topics you want from the course, but these are just some examples of issues you could discuss. It is important to remember that it is great to have opinions throughout the paper, but it is equally important to support your opinions with empirical evidence from the book or other peer-reviewed sources. See the course schedule for the due date. Late papers will not be accepted.

1. You’re not limited to these examples and do not have to mention every concept from class as you only have 7-10 pages of text – this does not include the title page, references, or graphics (standard 8.5” x 11” paper). In addition to references from the textbook, search for recent articles and studies to support your decisions.

2. Must include: APA Format – Title page; Introduction; Main Body; Conclusion; References (bibliography)

3. Bibliography/references page. Minimum number of references: 3(No Wikipedia)

4. APA format

5. Double spaced; computer printed

6. Font 12 (Times New Roman or Arial only) – Exception for Title Page ONLY.

7. 1” margins all around

8. The ONLY formats accepted are: , x, or .rtf (NO .wps)

9. Clearly reference any factual statements at the end of the paragraphs in which they are stated. (Author and year is sufficient – enough to guide the reader to the bibliography).

10. Photos; graphics; logos; tables are encouraged but not included in the text pages count.

11. Submission for this paper will be on blackboard, not through email.

*LATE PAPERS ARE NOT ACCEPTED

**Title page to include, at minimum:

Title of your work;

Your Name;

Course number; Course name;

name of college;

name of professor;

date submitted.

CHAPTER 1

Introduction to training and development

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Objectives (1)
Discuss the forces influencing the workplace and learning and explain how training can help companies deal with these forces
Draw a figure or diagram and explain how training, development, informal learning, and knowledge management contribute to business success
Discuss various aspects of the training design process
Describe the amount and types of training occurring in U.S. companies

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Objectives (2)
Discuss the key roles for training professionals
Identify appropriate resources, such as journals and websites, for learning about training research and practice

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Training is important in many respects
There are many challenges and opportunities in the workplace today
Training equips individuals with necessary knowledge, skills, and abilities
Training attracts employees to companies, engages them, and promotes retention
Training helps to create and sustain a competitive advantage

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Key Components of Learning

J
ump to
Key Components of Learning
Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning enhances human capital
Learning
The process of acquiring knowledge, skills, competencies, attitudes, or behaviors
Human Capital
The knowledge, advanced skills, understanding, creativity, and motivation to deliver high-quality products and services

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
How do training and development differ?
Training
Facilitates learning job-related competencies, knowledge, skills or behavior
Development
Future focused—includes formal education, job experiences, relationships, and assessments

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Informal learning is important
While formal training is important, much of what is learned occurs through informal learning
There are several characteristics of informal learning
Learner initiated
Occurs without a trainer or instructor
Motivated by an intent to develop
Does not occur in a formal learning setting
Breadth, depth, and timing are controlled by the employee

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Explicit and tacit knowledge
Explicit Knowledge
Well documented, easily articulated, and easily transferred from person-to-person
Primary focus of formal training
Tacit Knowledge
Personal knowledge based on experience that is difficult to codify
Facilitated by informal learning

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Knowledge management
Knowledge management includes tools, processes, systems, structures, and cultures to improve the creation, sharing, and use of knowledge
Knowledge management is important because it contributes to informal learning

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
The training design process

J
ump to

THE TRAINING DESIGN PROCESS
Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

11

ADDIE

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

12

Questions
Why is it important to systemically design training?
What are the limitations of the ISD and ADDIE models?
What should you do in practice?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
A number of forces impact learning
Economic cycles
Globalization
Value of intangible assets and human capital
Focus on links to business strategy
Changing demographics and diversity
Generational differences
Talent management
Customer service and quality emphasis
New technology
High-performance models of work systems

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Economic cycles
Irrespective of the current economic cycle, training contributes to an organization’s performance
In the current economy, it can be difficult to find employees with the skills they need and to replace retiring employees
High-performing employees may be looking to change jobs for better opportunities

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Globalization
Global companies are struggling to find and retain talented employees, especially in emerging markets
Many employees in the U.S. are immigrants, filling high-skilled and low-skilled positions
U.S. companies need to consider the benefits and costs of offshoring

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Increased value placed on intangible assets and human capital
What is meant by … ?
human capital
intellectual capital
social capital
customer capital
How do training and development directly or indirectly influence each of these types of capital?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Focus on links to business strategy
Training should be carefully aligned with business strategy to help an organization achieve its strategic goals
Training is no longer an isolated function, but rather an integral part of business success
Different companies have different strategic training needs—one size does not fit all

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Changing demographics and diversity of the workforce
The workplace is becoming older and more culturally diverse
The median age of the labor force will be 42.3 years in 2026, the oldest ever recorded
Between 2016 and 2026, the U.S. labor force will be more ethnically diverse due to immigration, increased participation of minorities in the workforce, and higher minority fertility rates
Training is important to help promote diversity and accommodate needs of different groups

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
generations at work
There are five generations in today’s workplace
Generation Z—Digital Natives
The Millennials
Generation X
Baby Boomers
Traditionalists
What skill sets are needed for managing generational diversity?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Talent management
Systematic, planned, and strategic effort by a company to attract, retain, develop, and motivate highly skilled talent
Key components
acquiring and assessing employees
learning and development
performance management and compensation

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
TOP Talent management challenges
As Baby Boomers continue to retire, what will the burden be for remaining employees? How can the knowledge of Boomers be captured before they leave?
In tight labor markets, how can organizations find, attract, and develop skilled employees?
How can companies develop new leadership?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Service and quality emphasis
Total Quality Management (TQM)
Company-wide effort to continuously improve the ways people, machines, and systems accomplish work
Quality Standards
Malcolm Baldrige National Quality Award
ISO 9000:2000

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
ISO 10015 training standards
Companies have to determine the return on investment of training to company performance
Companies are required to use appropriate design and effective learning processes
ISO 10015 defines training design as analyzing, planning, doing, and evaluating

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Baldrige award criteria

Jump to BALDRIGE AWARD CRITERIA Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

25

Six sigma
A process of measuring, analyzing, improving, and then controlling processes once they have been brought within narrow six sigma quality tolerances or standards
Involves highly trained employees known as Champions, Master Black Belts, Black Belts, and Green Belts, who lead and teach teams

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
How social media can help training
Knowledge sharing, capturing, and storing
Collect employee opinions
Create online expert communities
Encourage participation in online discussions
Share best practices and links to articles and webinars
Interact with mentors and coaching peers

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Technology and training
What new technologies can be used for training?
What are the benefits of new technology? What are the challenges and limitations?
Will new technology eliminate the need for traditional classroom training? Why or why not?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
High-performance work systems
Work teams
Employees interact to assemble a product or provide a service
Cross training
Training employees in a range of skills to fill different roles
Virtual teams
Teams separated by time, geographic, and organizational boundaries

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Snapshot of training practices (1)
Total training expenditures rose almost 33% to 90.6 billion in 2017
Direct expenditures, as a percentage of payroll and learning hours, have gradually risen over the last several years
The average number of learning hours per employee has increased since 2012
There is an increased demand for specialized learning that includes manager, professional, and industry-specific content

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Snapshot of training practices (2)
The use of technology-based learning delivery has increased from 38% in 2011 to 45 percent in 2016
Self-paced online learning is the most frequently used type of technology-based learning
Technology-based learning has helped improve learning efficiency
Traditional, instructor-led classroom training continues to be the most popular method, but its use continues to decline

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Characteristics of Best award winners
Training supports business strategy
Visible support from top management
Efficiency in training
All employees with access to training on an as-needed basis
Variety of learning opportunities
Measurement of training effectiveness
Use of non-training solutions

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Training roles (1)
Learning Strategist
Determines how learning can be used to align with business strategy
Business Partner
Uses business knowledge and industry expertise to create training that improves performance

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Training roles (2)
Project Manager
Plans and monitors delivery of learning and performance solutions to support the business
Professional Specialist
Designs, develops, delivers, and evaluates learning and performance systems

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Training professional associations
Association for Talent Development (ATD)
Academy of Human Resource Development (AHRD)
Society for Human Resource Management (SHRM)
Society for Industrial and Organizational Psychology (SIOP)
Academy of Management (AOM)
International Society for Performance Improvement (ISPI)

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Appendix of Image Long Descriptions

Key Components of Learning Long Description
This image illustrates the key components of learning. It contains two concentric circles. The area between these circles has been divided into two segments. The top segment is labeled formal training and employee development. The left end of the second segment is labeled knowledge management, and the right end of the second segment is labeled informal learning.
The top portion within the inner circle is labeled learning human capital. A downward-pointing arrow connects this content to two points at the bottom of the inner circle. These points read as follows:
Performance improvement
Reach business goals
Jump back to
KEY COMPONENTS OF LEARNING

37

The training design process Long Description
This slide presents the instruction design process with an arrow (from left to right):
Conduct a needs assessment—determine who and what needs to be trained
Ensure employee readiness for training—ensure employees are prepared and motivated to attend training
Create a learning environment—create an environment that has the features for learning to occur
Ensure transfer of training—ensure support is in place to facilitate the transfer of trained skills
Develop an evaluation plan—determine how the effectiveness of training will be assessed
Design and conduct training —select training methods and deliver training
Monitor and evaluate—assess the effectiveness of training
Jump back to
THE TRAINING DESIGN PROCESS

Baldrige award criteria Long Description
This slide presents the different Baldrige Award criteria in different boxes (from left to right, top to bottom):
Leadership
Measurement, analysis, and knowledge management
Strategic planning
Workforce focus
Operational focus
Results
Customer focus
Jump back to BALDRIGE AWARD CRITERIA

Page10

CHAPTER 1

Introduction to Employee Training and Development

This introductory chapter discusses why training is important to help companies successfully compete in today’s business environment. The chapter provides an overview of training practices, the training profession, forces impacting training, and how to design effective training. The chapter begins with a discussion of how a variety of companies use training to improve their competitive advantage. The chapter proceeds to define a number of terms relating to training, followed by an overview of the basic Instructional System Design (ISD) model, the foundation for effective training. Next, forces influencing working and learning are presented, concluding with an overview of training practices.

OBJECTIVES

1. Discuss the forces influencing the workplace and learning and explain how training can help companies deal with these forces.

2. Draw a figure or diagram and explain how training, development, informal learning, and knowledge management contribute to business success.

3. Discuss various aspects of the training design process.

4. Describe the amount and types of training occurring in U.S. companies.

5. Discuss the key roles for training professionals.

6. Identify appropriate resources (e.g., journals and websites) for learning about training research and practice.

INTRODUCTION

Companies are experiencing great change due to new technologies, rapid development of new knowledge, globalization, and e-commerce. To help with such change, companies need to devote significant resources to attract, retain, and motivate their workforces. Human resource management (HRM) refers to the policies, practices, and systems that influence employee behavior, attitudes, and performance. Training is one of the key components of the HRM function. The overarching theme of this text is that training, development, and related learning activities are central to organizations being successful in the marketplace.

TRAINING AND DEVELOPMENT: KEY COMPONENTS OF LEARNING

It is important to understand what training means in the broader business context. The overall goal of training is learning. Learning refers to employees acquiring knowledge, skills, competencies, attitudes, or behaviors. When employees learn, it leads to the development of human capital. Human capital refers to knowledge, advanced skills, system understanding and creativity, and motivation to deliver high-quality products and services. Human capital may be more important than other types of capital in helping a company achieve competitive advantage. Below are a number of key terms related to training, development, and learning.

1. Training refers to a planned effort by a company to facilitate learning of job-related competencies, knowledge, skills, and behaviors. The goal of training is for employees to master the knowledge, skills, and behaviors and then apply them on the job.

2. Development refers to training, formal education, job experiences, relationships, and assessments of personality, skills, and abilities that help employees prepare for future jobs or positions.

3. Formal training and development refers to training and development programs, courses, and events that are developed and organized by the company.

4. Informal learning refers to learning that is learner initiated, involves action and doing, is motivated by an intent to develop, and does not occur in a formal learning setting. Informal learning may be particularly important because it leads to the development of tacit knowledge.

5. Explicit knowledge refers to knowledge that is well documented, easily articulated, and easily transferred from person-to-person. Examples of explicit knowledge include processes, checklists, flowcharts, formulas, and definitions.

6. Tacit knowledge refers to personal knowledge based on individual experiences that is difficult to codify.

7. Knowledge management refers to the process of enhancing company performance by designing and implementing tools, processes, systems, structures, and cultures to improve the creation, sharing, and use of knowledge.

DESIGNING EFFECTIVE TRAINING

Training must be systematically designed to help ensure maximum impact. The training design process should follow the principles of Instructional System Design (ISD), a step-by-step process for designing and developing training programs. Following a systematic approach helps ensure that training targets the most important learning needs, adopts the most appropriate methods, and has a meaningful on-the-job impact.

The ISD process involves seven interrelated steps:

1. Conduct a needs assessment—determine who and what needs to be trained

2. Ensure employee readiness for training—ensure employees are prepared and motivated to attend training

3. Create a learning environment—create an environment that has the features for learning to occur

4. Ensure transfer of training—ensure support is in place to facilitate the transfer of trained skills

5. Develop an evaluation plan—determine how the effectiveness of training will be assessed

6. Design and conduct training —select training methods and deliver training

7. Monitor and evaluate—assess the effectiveness of training

The training design process sometimes is referred to as the ADDIE model because it includes analysis, design, development, implementation, and evaluation.

Regardless of the specific ISD approach used, all share the following assumptions:

· Training design is effective only if it helps employees reach instructional goals and objectives.

· Measurable learning objectives should be identified before training program begins.

· Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process.

OVERCOMING FLAWS OF THE ISD MODEL

Some training professionals argue that the ISD model is flawed for several reasons. First, in organizations, the training design process rarely follows the neat, orderly, step-by-step approach of activities. Second, in trying to standardize their own ISD method used in the training function, some organizations require trainers to provide detailed documents of each activity found in the model. Third, the ISD implies an end point: evaluation. Fourth, many companies claim to use an instructional design approach but dilute its application.

The ISD model certainly has value. Yet, the training design process should flexible enough to adapt to changing business needs. Although it may not be realistic to follow the ISD model in a pure linear fashion, it is key that organizations focus on each of its component parts. The training design process should be systematic, yet flexible enough to adapt to business needs. Depending on the circumstances, the steps may be completed simultaneously.

THE FORCES INFLUENCING WORKING AND LEARNING

Economic Cycles

Irrespective of the current economic cycle, training has been shown to positively contribute to an organization’s performance. Today’s economy is currently fairly healthy. One of the implications of the current economy with low unemployment rates is that companies are unable to find employees with the skills they need to expand their operations, replace retiring employees, or keep up with increased demands for their products and services. Also, valuable high-performing employees may be looking to change jobs for higher wages or better career opportunities.

Globalization

Many companies are involved in international markets by exporting their products overseas, building manufacturing facilities or service centers in other countries, entering into alliances with foreign companies, and engaging in e-commerce.

Global companies are struggling to find and retain talented employees, especially in emerging markets. Also, companies often place successful U.S. managers in charge of overseas operations, but these managers lack the cultural understanding necessary to attract, motivate, and retain talented employees.

Globalization also means that employees working in the U.S. will come from other countries. Immigrants often provide scientific talent and fill low-wage jobs. The H-1B visa program is for persons in highly skilled and technical occupations requiring completion of higher education. Other visa programs are available for lower-skilled temporary or seasonal workers (H-2A, H-2B) who are also in short supply. Many of these immigrants will have to be trained to understand the U.S. culture. U.S. employees will need skills to improve their ability to communicate with employees from different cultures.

Globalization means that U.S. companies have to carefully consider the costs and benefits of moving jobs overseas or using foreign suppliers. Offshoring refers to the exporting of jobs from developed countries, such as the U.S., to countries where labor and other costs are lower.

Increased Value Placed on Intangible Assets and Human Capital

Intangible assets such as human capital contribute to a company’s competitive advantage because they are difficult to duplicate and imitate. Intangible assets are equally as valuable as financial and physical assets, but they are not something that can be touched and they are nonmonetary.

There are four types of intangible assets:

1. Human capital refers to the sum of the attributes, life experiences, knowledge, inventiveness, energy, and enthusiasm that the company’s employees invest in their work.

2. Intellectual capital refers to the codified knowledge that exists in a company

3. Social capital refers to relationships in the company

4. Customer capital refers to the value of relationships with persons or other organizations outside the company for accomplishing the goals of the company (e.g., relationships with suppliers, customers, vendors, and government agencies)

Training and development have a direct influence on human and social capital because they affect education, work-related know-how and competence, and work relationships. Training and development can have an indirect influence on customer and social capital by helping employees better serve customers and providing them with the knowledge needed to create patents and intellectual property.

The value of intangible assets and human capital has three important implications, including a focus on knowledge workers, employee engagement, and an increased emphasis on adapting to change and continuous learning.

· Knowledge workers are employees who contribute not through manual labor but through what they know, perhaps about customers or a specialized body of knowledge.

· Employee engagement refers to the degree to which employees are fully involved in their work and committed to their job and the company.

· A learning organization embraces a culture of lifelong learning, enabling all employees to continually acquire and share knowledge.

Focus on Links to Business Strategy

Training can play a significant role in helping an organization research its strategic goals. Given the important role that intangible assets and human capital play in a company’s competitiveness, managers are beginning to see a more important role for training and development as a means to support a company’s business strategy.

Changing Demographics and Diversity of the Workforce

Companies face several challenges as a result of changing demographics and the diversity of the workplace. In particular, the workforce will be older and more culturally diverse. Not only must organizations provide a fair workplace, they must provide training to enhance diversity and help accommodate the needs of different groups.

The aging population means that companies are likely to employ a growing share of older workers—many of them in their second or third careers. Older people want to work, and many say they plan a working retirement.

Generational Differences

Five generations (generation Z, Millennials, generation X, baby boomers, and traditionalists) are participating in today’s workforce, each one with unique characteristics.

· Generation Z, born after 1995, have started to graduate from college and are already part of the workforce. They are digital natives; they are more attached to mobile phones and tablets for learning and connecting with others than are Millennials.

· Millennials grew up with diversity in their schools and were coached, praised, and encouraged for participation rather than accomplishment by their Baby Boomer parents. Millennials are characterized as being optimistic, willing to work and learn, eager to please, self-reliant, globally aware, and valuing diversity and teamwork.

· Generation Xers grew up during a time when the divorce rate doubled, the number of women working outside the home increased, and the personal computer was invented. They were often left on their own after school. They value skepticism, informality, and practicality; seek work/life balance; and dislike close supervision.

· Baby Boomers, the “Me” generation, marched against the “establishment” for equal rights and an end to the Vietnam War. They value social conscientiousness and independence.

· Traditionalists grew up during the Great Depression and lived during World War II. They tend to value frugality, are patriotic and loyal, adhere to rules, are loyal to employers, and take responsibility and sacrifice for the good of the company.

To successfully manage a diverse work force, managers and employees must be trained in a new set of skills, including:

· Communicating effectively with employees from a wide variety of backgrounds

· Coaching, training, and developing employees of different ages, educational backgrounds, ethnicities, physical abilities, and races

· Providing performance feedback that is free of values and stereotypes

· Training managers to recognize and respond to generational differences

· Creating a work environment that allows employees of all backgrounds to be creative and innovative

Talent Management

Talent management refers to the systematic, planned, and strategic effort by a company to use bundles of HRM practices, including acquiring and assessing employees, learning and development, performance management, and compensation to attract, retain, develop, and motivate highly skilled employees.

Talent management is becoming increasingly more important because of changes in demand for certain occupations and jobs, skill requirements, the retirement of Baby Boomers, and the need to develop managerial talent and skills of the next generation of company leaders.

The results of surveys suggest that opportunities for career growth, learning, and development, and the performance of exciting and challenging work are some of the most important factors in determining commitment to employers, especially among Millennials.

A number of talent management challenges are confronting organizations today:

· The retirement of Baby Boomers. As the Boomers continue to retire in the next several years, the implications for the workforce could be enormous. This could hinder prospects for economic growth and put a greater burden on those remaining in the workforce. There is also the challenge of how to capture the knowledge of Boomers before they leave.

· Skill requirements. As jobless rates fall and business grows, employers in many industries are having difficulty finding qualified workers. Skills deficits are not limited to any one business sector, industry, or job.

· Developing leadership. Companies report that the most important talent management challenges they face are identifying employees with managerial talent and training and developing them for managerial positions. This is attributed to the aging of the workforce, globalization, and the need for managers to contribute to employee engagement. Executive, administrative, and managerial occupations will experience the greatest turnover due to death or retirement.

Customer Service and Quality Emphasis

Due to increased availability of knowledge and competition, consumers are very knowledgeable and expect excellent service. This presents a challenge for employees who interact with customers. To compete in today’s economy, companies and employees need to be better skilled than ever.

Total Quality Management (TQM) is a companywide effort to continuously improve the ways people, machines, and systems accomplish work. The following are key principles of TQM:

· Methods and processes are designed to meet the needs of internal and external customers

· Every employee in the company receives training in quality

· Quality is built into a product or service so that errors are prevented from occurring rather than being detected and corrected

· The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs

· Managers measure progress with feedback based on data

The emphasis on quality is seen in the establishment of the Malcolm Baldrige National Quality Award and the ISO 9000:2000 quality standards. To become eligible for the Baldrige, which is awarded annually, a company must complete a detailed application that consists of basic information about the firm and an in-depth presentation of how it addresses specific criteria related to quality improvement. The Baldrige Award winners usually excel with training and development.

The International Organization for Standardization (ISO) develops standards related to management and a wide variety of other areas. The ISO 9000 is a family of standards related to quality (ISO 9000, ISO 9001, ISO 9004, and ISO 19011). The ISO 9000 quality standards address what a company needs to do to meet regulatory requirements and the customer’s quality requirements while striving to improve customer satisfaction and continuous improvement.

Many companies are also using Six Sigma for monitoring and improving quality. The Six Sigma process refers to a process of measuring, analyzing, improving, and then controlling processes once they have been brought within the narrow Six Sigma quality standards. Training is an important component of the Six Sigma process.

Training can help companies meet the quality challenge by teaching employees a concept known as “lean thinking.” Lean thinking is a way to do more with less effort, equipment, space, and time, but still provide customers with what they need and want. Part of lean thinking includes training workers in new skills or teaching them how to apply old skills in new ways so they can quickly take over new responsibilities or use new skills to help fill customer orders.

New Technology

Advances in sophisticated technology along with reduced costs for the technology are changing the delivery of training, making training more realistic, and giving employees the opportunity to choose where and when they will work. New technologies allow training to occur at any time and any place.

There are a number of uses for social networking in training and development:

· Share, capture, and store knowledge

· Collect employee opinions

· Create online expert communities

· Encourage participation in online discussions

· Share best practices and links to articles and webinars

· Interact with mentors and coaching peers

Despite its potential advantages, many companies are uncertain as to whether they should embrace social networking. They fear that social networking will result in employees wasting time, interfering with completing their work, or offending or harassing coworkers.

While trainer-led classroom instruction remains the most popular way to deliver training, companies report that they are delivering a large portion of training through learning technologies such as intranets and iPods.

Artificial intelligence, robotics, tracking systems, radio frequency identification, and nanotechnology are transforming work. Technology has also made it easier to monitor environmental conditions and employees and operate equipment.

Wearables are just beginning to be developed and used for training and performance support solutions. Wearable Intelligence provides smart eyewear technology and camera technology that gives employees hands-free, voice-activated access to procedures and checklists and live access to experts using tablet computers.

Flexibility in where and when work is performed.

Technology can enhance flexibility in where and when work is performed. Many companies are recognizing the benefits that can be gained by both the company and employees through providing flexible work schedules, allowing work at-home arrangements, protecting employees’ free time, and more productively using employees’ work time. The benefits include the ability to have an advantage in attracting and retaining talented employees, reduced stress resulting in healthier employees, and a rested workforce that can maximize the use of their skills. Employees in managerial, business, and financial, operations and professional occupations are most likely to do some or all of their work at home.

Increased Use of Nontraditional Employment.

More companies are moving away the traditional employment model based on full-time workers to increasingly rely on nontraditional employment. Nontraditional employment includes the use of independent contractors, freelancers, on-call workers, temporary workers, and contract company workers.

What does nontraditional employment look like? Often, a website or mobile app is used to assign work, and the worker sets his or her own schedule. Because these workers do not work for a company, they do not have taxes withheld from their earnings, they do not have to receive minimum wage or overtime pay, and they are not eligible for worker’s compensation and unemployment insurance.

Some companies that rely primarily on nontraditional employment to meet service and product demands are competing in the gig economy. Examples of companies that rely on the gig economy include transportation services Uber and Lyft and food-delivery services such as Caviar.

A key training issue that nontraditional employment presents is providing training is specific, on demand, delivered in small chunks, and specifically focused on their job.

High-Performance Models of Work Systems

One of the most popular methods for increasing employee responsibility and control is work teams. Work teams involve employees with various skills who interact to assemble a product or provide a service. Work teams may assume many of the activities reserved for managers, such as hiring new employees and coordinating work activities.

Cross-training refers to training employees in a wide range of skills so they can fill any of the roles needed to be performed on the team.

Virtual teams are teams with members that are separated by time, geographic distance, culture, and/or organizational boundaries that rely almost exclusively on technology to interact and complete their projects. The success of virtual teams requires a clear mission, good communications skills, trust between members that they will meet deadlines and complete assignments, and an understanding of cultural differences (if the teams have global members).

SNAPSHOT OF TRAINING PRACTICES

Training Facts and Figures

· Total training expenditures rose almost 33% to 90.6 billion in 2017.

· Direct expenditures, as a percentage of payroll and learning hours, have gradually risen over the last several years.

· The average number of learning hours per employee has increased since 2012.

· There is an increased demand for specialized learning that includes manager, professional, and industry-specific content.

· The use of technology-based learning delivery has increased from 38 percent in 2011 to 45 percent in 2016.

· Self-paced online learning is the most frequently used type of technology-based learning.

· Technology-based learning has helped improve learning efficiency.

· Traditional, instructor-led classroom training continues to be the most popular method. However, its use continues to decline (59% in 2010 to 51% in 2016).

Training Investment Leaders

Higher investment in training by companies in the United States is related to use of innovative training practices and high-performance work practices such as teams, employee stock ownership plans, incentive compensation systems, individual development plans, and employee involvement in business decisions. Such spending has been shown to be related to improved profitability, customer and employee satisfaction, and the ability to retain employees.

The Association for Talent Development (ATD) BEST Award winners are companies that aligned training with business strategy, valued learning in their company culture, offered a variety of learning activities for all employees, measured the effectiveness of training, and provided non-training solutions, as needed. Specifically, the BEST companies are characterized as:

· Alignment of business strategy with training and development

· Learning is valued as part of the culture and supported by executive leaders and top managers

· Effectiveness and efficiency of learning is measured

· Investment in training and development

· Different learning opportunities are provided and all employees have access to them

· Measurement of effectiveness and efficiency of training and development activities

· Non-training solutions for performance improvement used, including organization development and process improvement

Roles, Competencies and Positions of Training Professionals

Trainees can typically hold many jobs, such as instructional designer, technical training, or needs analysis. The ATD competency model describes what it takes for an individual to be successful in the training and development field.

· Learning strategist: determines how workplace learning can be used to help meet the company’s business strategy

· Business partner: uses business and industry knowledge to create training that improves performance

· Project manager: plans, obtains, and monitors the delivery of learning and performance solutions to support the business

· Professional specialist: designs, develops, delivers, and evaluates learning and performance systems

Although training professionals spend most of their time designing learning, delivering training, managing learning programs, identifying, selecting, and using learning technologies, and coaching, they do spend time in other areas as well. Namely, training professionals engage in performance improvement, talent management, and knowledge management.

Who Provides Training?

In most companies, training is provided by trainers, managers, in-house consultants, and employee experts. Training may also be outsourced. Outsourcing means that training activities are provided by individuals outside the company.

Who Is in Charge of Training?

Training and development can be the responsibility of professionals in human resources, human resource development, or organizational development. Companies may also have entire functions or departments (e.g., human resources, human resource development, talent management or development, or organizational development) that provide training and development. In small companies, training is the responsibility of the founder and all the employees.

Human resource development refers to the integrated use of training and development, organizational development, and career development to improve individual, group, and organizational effectiveness.

Preparing to Work in Training

Being a successful training professional requires staying up-to-date on current research and training practices. The primary professional organizations for persons interested in training and development include:

· Association for Talent Development (ATD)

· Academy of Human Resource Development (AHRD)

· Society for Human Resource Management (SHRM)

· Society for Industrial and Organizational Psychology (SIOP)

· Academy of Management (AOM)

· International Society for Performance Improvement (ISPI)

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

CHAPTER 2

Strategic training

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Objectives (1)
Discuss how business strategy influences the type and amount of training in a company
Describe the strategic training and development process
Discuss how a company’s staffing and human resource planning strategies influence training
Explain the training needs created by concentration, internal growth, external growth, and disinvestment business strategies
Discuss the advantages and disadvantages of centralizing the training function

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Objectives (2)
Explain a corporate university and its benefits
Discuss the strengths of a business-embedded learning function
Discuss how to create a learning or training brand and why it is important
Develop a marketing campaign for a training course or program

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Training can (and Should be) Strategic
Training can have both a direct an indirect impact on organizational success
Business strategy will shape the training function
Strategy impacts what gets trained, who gets training, and how much training is valued
The role of training is evolving from an event to learning

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

4

The learning organization
A learning organization is characterized as:
a company with an enhanced capacity to learn, adapt, and change
a culture where employees seek, share, and apply new knowledge to improve performance
an organization where training is a part of a larger system to enhance human capital
High performing companies are more than five times as likely to have a strong learning culture

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning and human capital development
Learning has to help employee performance and business success
Unpredictability in the business environment will be the norm
Companies need to support informal learning because tacit knowledge is difficult to acquire in formal training
Learning has to be supported with physical resources and psychologically
Managers need to understand employees to determine development needs

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
capabilities critical for strategic training
Alignment of learning goals to business goals
Measurement of the overall business impact of the learning function
Movement of learning to include customers, vendors, and suppliers
A focus on developing competencies for the most critical jobs
Integration of learning knowledge management, performance support, and talent management
Delivery approaches that include classroom training and e-learning
Design and delivery of leadership development courses

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Strategic Training & Development Process

Jump to
STRATEGIC TRAINING & DEVELOPMENT PROCESS

Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8

Identify business strategy
Determine the company’s mission
Establish goals
Perform a SWOT—strengths, opportunities, weakness, and threats
Determine strategic choice

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Determine strategic initiatives
Learning-related actions that a company should take to achieve its business strategy
A road map to guide specific training activities
Avoid the disconnect between strategy and execution

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Common strategic initiatives

Jump to
Common strategic initiatives

Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

11

Questions to ask
What is the vision and mission?
What capabilities and competencies are critical for success?
What types of training will best attract, develop, and retain employees?
Does the company have a plan for communicating the link between training and business strategy to key constituents?
Does senior management support training?
Does the company provide training for individuals and teams?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Translate initiatives into activities
The next step is to determine specific, concrete activities that align with strategic initiatives
Such activities will vary based on the initiatives that were developed

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Identify metrics and evaluate
The final step is to determine if training investments were successful
Strategic training evaluation is not intended to evaluate the effectiveness of an isolated program, but a set of training activities
The business-related outcomes examined should be directly linked to strategy and goals

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
BALANCED SCORE CARD

Jump to
BALANCED SCORE CARD

Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

15

Organizational characteristics that influence training

Jump to
ORGANIZATIONAL CHARACTERISTICS THAT INFLUENCE TRAINING
Long Description
see jump to link at slide bottom for long description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

16

Roles of employees and managers
Employees are now performing roles once reserved for management
Given the prevalence of teams, employees require more cross-training and interpersonal skills training
Managers’ jobs are highly complex, requiring greater skill and training

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Top management support
Set a clear direction for learning
Provide encouragement and resources
Take an active role in governing learning
Develop and teach new programs
Serve as a role model
Promote learning through different channels

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Integration of business units
Integration of business units affects the approach to training
In a highly integrated business, employees need to understand all parts of the company, and training must address those needs

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Global presence
For companies with global operations, training is needed to prepare employees for overseas assignments
Companies must decide if training will be coordinated through a central U.S. facility or through satellite locations

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Business conditions
With low unemployment, it’s difficult to find top talent
In unstable environments, training may become short-term
When there is growth, training will be in high demand
When trying to revitalize and redirect, there are fewer incentives for training
When downsizing, training may focus on continued employability

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Staffing strategy and training
Fortress
limited resources for training, recruit from the outside
Baseball team
creativity needed, recruit from other companies or new graduates
Club
highly regulated industries, develop own talent
Academy
specialized skills, focus heavily on developing employees

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Strategic value and uniqueness
Knowledge-based workers—heavy training
Job-based employees—less training than knowledge workers
Contract employees—limited training
Alliance/partnerships—sharing expertise and team training

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Extent of unionization
Presence of a union leads to joint union-management programs for preparing employees for jobs
Given that unions have a significant impact on HRM practices, they must be involved in determining strategic training priorities
Collaboration is key

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Staff involvement in training
Managers need to be involved so training links to business needs and transfer can be supported
Managers will be more involved if they are rewarded for doing so
Employees now assume greater responsibility for planning their own development

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Training in different strategies
Concentration Strategy
Skill currency and the development of the existing workforce
Internal Growth Strategy
Creation of new jobs and tasks, innovation, and talent management
External Growth Strategy
Integration, redundancy, and restructuring
Disinvestment Strategy
Efficiency

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Centralized training
There are several advantages:
Stronger alignment with strategy
Common set of metrics or scorecards to evaluate training
Streamlined processes
Better integration of programs to develop leaders
Easier to manage talent during times of change

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Corporate University Model

Jump to
Corporate University Model
Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

28

Advantages of the corporate university model
Dissemination of best practices
Alignment of training with business needs
Integration of training initiatives
Effective use of new technology and methods
Clear vision and mission
Evaluation of learning focused on employee and business results
Partnership with academia

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Business-embedded learning function
The learning function is centralized, but able to respond quickly to client needs
All persons involved in training communicate and share resources
Trainers—who are responsible for developing training materials, delivering instruction, and supporting trainees—work together to ensure that learning occurs
Trainers have specialized competencies and serve as internal consultants

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
A change model perspective
Four change-related problems need to be addressed before the implementation of any new training practice
Resistance to change
Loss of control
Power imbalance
Task redefinition challenges

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
A Change Model

Jump to
A Change Model

Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

32

Marketing training
Despite its value, some individuals may not value training
Training often needs to be marketed so key constituents embrace learning
Internal marketing involves making employees and managers excited about training and learning

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Internal marketing tactics
Involve the target audience
Demonstrate how training can solve business problems
Show examples of previous successes
Identify a champion who supports training
Advertise through multiple channels
Speak in terms employees understand

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Reasons to outsource training
Cost savings
Time savings that allow a company to focus on business strategy
Improvements in compliance with regulatory training
Lack of internal capability to meet learning demands
Desire to access best training practices

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Be strategic
Outsourcing may not necessarily be the solution
Be sure to consider
the skill set in question
resources and expertise
desire for control
the quality of the potential vendor
the importance of training in the organization

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Appendix of Image Long Descriptions

Strategic Training & Development Process Long Description
This slide presents the strategic training process with an arrow (from left to right):
Business Strategy
Strategic Training and Development Initiatives
Training and Development Activities
Metrics that Show the Value of Training
Jump back to
Strategic Training & Development Process

Common strategic initiatives Long Description
This slide presents different strategic training initiatives in different boxes (from left to right, top to bottom):
Diversify the learning portfolio
Expand who is trained
Accelerate the pace of learning
Improve customer service
Provide development opportunities and communicate with employees
Capture and share knowledge
Align training with the company’s direction
Ensure the work environment supports learning and transfer
Jump back to
Common strategic initiatives

BALANCED SCORE CARD Long Description
This slide presents the balanced score card in four quadrants (beginning top left, clockwise):
CUSTOMER — time, quality, performance, service, and cost
INTERNAL BUSINESS PROCESSES — processes that influence customer satisfaction
INNOVATION AND LEARNING — operating efficiency, employee satisfaction, and continuous improvement
FINANCIAL — profitability, growth, and shareholder value
Jump back to
BALANCED SCORE CARD

Organizational characteristics that influence training Long Description
 This slide presents different organizational characteristics that influence training in different boxes (from left to right, top to bottom):
Roles of employees and managers
Top management support
Integration of business units
Global presence
Business conditions
Other HRM practices
Strategic value of jobs and employee uniqueness
Unionization
Staff involvement
Jump back to
Organizational characteristics that influence training

Corporate University Model Long Description
This image illustrates the corporate university model.
The left end of the illustration is labeled historical training problems. There are five items listed under this heading. They read as follows:
Excessive costs.
Poor delivery and focus.
Inconsistent use of common training practices.
Best training practices not shared.
Training not integrated or coordinated.
At the center of the illustration, there is a rectangular box that is divided into four sections. The top end of the box is labeled leadership development programs. The bottom end of the box is labeled new employee programs. From the left to the right, the four sections are labeled product development, operations, sales and marketing, and human resources. An arrow passes through the center of this box and points to the right. The head and tail of the arrow are visible, and the body of the arrow is depicted by dotted lines.
The right end of the illustration is labeled training advantages. There are eight items listed under this heading. They read as follows:
Dissemination of best practices.
Align training with business needs.
Integrate training initiatives.
Effectively utilize new training methods and technology.
Clear vision and mission.
Effectively use technology to support learning.
Evaluation of learning’s impact on employees and business results.
Partnership with academia.
Jump back to
Corporate University Model

A Change Model Long Description
This image illustrates the change model. It contains hexagonal structures and rectangular structures. The rectangular structures relate to components of the organization, and the hexagonal structures relate to change-related problems.
There is a hexagon labeled power imbalance positioned at the top center portion of this illustration. It is followed by a rectangular box that is labeled informal organization.
There is a hexagon labeled resistance to change at the bottom center portion of this illustration. There is a rectangular box above it. This box is labeled individual.
There is a hexagon labeled task redefinition challenges positioned on the left side of this illustration. There is a rectangular box on its right. This box is labeled task.
There is a hexagon labeled loss of control positioned on the right corner of this illustration. There is a rectangular box on its left. This box is labeled formal organizational arrangements.
A double-ended arrow connects the boxes labeled informal organization and individual. Another double-ended arrow connects the boxes labeled task and formal organizational arrangements.
Jump back to
A Change Model

Page 3

CHAPTER 2

Strategic Training

This chapter provides an in-depth treatment of how training should be aligned with the strategic goals of an organization to help it achieve a competitive advantage. The chapter begins by discussing how training can be strategic along with a discussion of the evolution of the training function. It proceeds to discuss learning as a strategic focus, the strategic training and development process, and organizational characteristics that influence training, and training needs in different strategies. The chapter concludes by addressing different models of organizing the training department, how to create a training brand, and the advantages and limitations of outsourcing training. For training to help a company gain a competitive advantage, it must be aligned with its strategic focus. If training is not tied to business strategy, then its existence may be tenuous and perhaps unjustified.

OBJECTIVES

1. Discuss how business strategy influences the type and amount of training in a company.

2. Describe the strategic training and development process.

3. Discuss how a company’s staffing and human resource planning strategies influence training.

4. Explain the training needs created by concentration, internal growth, external growth, and disinvestment business strategies.

5. Discuss the advantages and disadvantages of centralizing the training function.

6. Explain a corporate university and its benefits.

7. Discuss the strengths of a business-embedded learning function.

8. Discuss how to create a learning or training brand and why it is important.

9. Develop a marketing campaign for a training course or program.

INTRODUCTION

Why is the emphasis on strategic training important? Companies are in business to make money, and every business function is under pressure to show how it contributes to business success. To contribute to a company’s success, training activities should help the company achieve its business strategy.

A business strategy is a plan that integrates the company’s goals, policies, and actions. The goals are what the company hopes to achieve in the future. There are both direct and indirect links between training and business strategy and goals. Business strategy has a major impact on the type and amount of training that occurs and whether resources are devoted to training.

Strategy has a particularly strong impact on determining:

· the amount of training devoted to current or future job skills

· the extent to which training is customized

· whether training is restricted to specific groups of employees or open to all individuals

· whether training is planned and systematic versus developed spontaneously and haphazardly

· the importance of training relative to other HRM functions, such as selection and compensation

THE EVOLUTION OF TRAINING: FROM AN EVENT TO LEARNING

As more companies recognize the strategic importance of learning, the role of training is changing. Training has evolved from a focus on a single learning program or event to a broader set of integrated learning activities that may continue in the future.

That said, the role of training as a program or event will continue into the future because employees will always need to be taught specific knowledge and skills. This approach assumes that business conditions are predictable, they can be controlled by the company, and the company can control and anticipate the knowledge and skills that employees need in the future. These assumptions are true for certain skills, such as communication and conflict resolution. However, these training programs will need to be more closely tied to performance improvement and business needs to receive support from top management.

LEARNING AS A STRATEGIC FOCUS

The Learning Organization

A learning organization is a company that has an enhanced capacity to learn, adapt, and change. In learning organizations, where employees seek, share, and apply new knowledge and skills to improve both their personal and organizational performance. Learning is part of the organizational values. In a learning organization, training is one part of a system designed to create human capital. High performing companies are five times more likely than low performing companies to have a strong learning culture. The following are characteristics of a learning organization.

Supportive Learning Environment

· Employees feel safe expressing their thoughts about work, asking questions, disagreeing with managers, and admitting mistakes.

· Different functional and cultural perspectives are appreciated.

· Employees are encouraged to take risks, innovate, and explore the untested and unknown.

· Thoughtful review of the company’s processes is encouraged.

Learning Processes and Practices

· Knowledge creation, dissemination, sharing, and application are practiced.

· Systems are developed for creating, capturing, and sharing knowledge.

· Every employee has a development plan and they are accountable for completing the learning included in those plans.

Managers Reinforce Learning

· Managers actively question and listen to employees, encouraging dialogue and debate.

· Managers are willing to consider alternative points of view.

· Time is devoted to problem identification, learning processes and practices, and post-performance audits.

· Learning is rewarded, promoted, and supported.

IMPLICATIONS OF LEARNING FOR HUMAN CAPITAL DEVELOPMENT

The emphasis on learning has several implications.

· Learning has to be related to helping employees’ performance improve and helping the company achieve its business goals.

· Unpredictability in the business environment will continue to be the norm.

· Companies need to support informal learning because tacit knowledge is difficult to acquire in training programs.

· Learning has to be supported not only with physical and technical resources but also psychologically.

· Managers need to understand employees’ interests and career goals to help them find suitable development activities.

The following capabilities are critical for strategic training and development:

· Alignment of learning goals to business goals

· Measurement of the overall business impact of the learning function

· Movement of learning outside the company to include customers, vendors, and suppliers

· A focus on developing competencies for the most critical jobs

· Integration of learning with other human resource functions, such as knowledge management, performance support, and talent management

· Delivery approaches that include classroom training as well as e-learning

· Design and delivery of leadership development courses

THE STRATEGIC TRAINING AND DEVELOPMENT PROCESS

The strategic training and development process involves four steps:

· Identifying the organization’s business strategy

· Determining strategic training initiatives that align with this strategy

· Translating initiatives into concrete learning activities

· Identify metrics to determine whether training has contributed to goals related to the business strategy

Business Strategy Formulation and Identification

Strategic training begins with the knowledge of an organization’s business strategy. Formulating a business strategy involves several interrelated steps.

· Determining the company’s mission—the company’s reason for existing

· Establishing company goals—what the company hopes to achieve

· Conducting an external and internal analysis, which is known as a SWOT.

A SWOT analysis consists of an internal analysis of strengths and weaknesses and an external analysis of opportunities and threats that currently exist or are anticipated.

· Determining strategic choice based on the company’s mission, goals, strengths, weaknesses, opportunities, and threats.

Identify Training Initiatives that Support the Strategy

Strategic training initiatives are based on the business environment, an understanding of the company’s goals and resources, and insight regarding potential training options. They provide the company with a road map to guide specific training and development activities. They also show how the training function will help the company reach its goals.

Common strategic initiatives include:

· Diversify the learning portfolio—provide more training than traditional programs

· Expand who is trained—provide more training to more groups of employees

· Accelerate the pace of learning—provide more just-in-time training

· Improve customer service—training should place a greater emphasis on service competencies

· Provide development opportunities and communicate with employees—ensure employees recognize they have opportunities to learn and grow

· Capture and share knowledge—capture and share knowledge to ensure it is not lost if key employees leave

· Align training with the company’s direction—link training to strategy

· Ensure that the work environment supports learning and transfer of training—ensure there exists a positive learning climate for training

Questions to ask in developing strategic training initiatives include:

· What is the vision and mission?

· What capabilities and competencies are critical for success?

· What types of training will best attract, develop, and retain employees?

· Does the company have a plan for making sure the link between training and business strategy is communicated to key constituents?

· Does senior management support training?

· Does the company provide training for individuals and teams?

Provide Training and Development Activities Linked to Strategic Training and Development Initiatives

After a company chooses its strategic training and development initiatives related to its business strategy, it then identifies specific training and development activities that will enable these initiatives to be achieved.

These activities include developing initiatives related to the use of new technology in training, increasing access to training programs for certain groups of employees, reducing development time, and developing new or expanded course offerings. Such activities will vary based on the initiatives that were developed.

Identify and Collect Metrics to Show Training Success

The final step of the strategic training process is to determine if training investments were successful in helping an organization achieve its goals and objectives. Strategic training evaluation is not intended to evaluate the effectiveness of an isolated training program, but rather the value of a set of training activities.

The business-related outcomes examined should be directly linked to the business strategy and goals. Metrics could evaluate customer service, employee satisfaction or engagement, employee turnover, number of product defects, time spent in product development, number of patents, or time spent filling management positions.

Some companies use the balanced scorecard as a process to evaluate all aspects of the business. The balanced scorecard is a means of performance measurement that provides managers with a chance to look at the overall company performance or the performance of departments from the perspective of internal and external customers, employees, and shareholders. The balanced scorecard considers four different perspectives:

· Customer (time, quality, performance, service, and cost)

· Internal business processes (processes that influence customer satisfaction)

· Innovation and learning (operating efficiency, employee satisfaction, and continuous improvement)

· Financial (profitability, growth, and shareholder value)

ORGANIZATIONAL CHARACTERISTICS THAT INFLUENCE TRAINING

Company Size

Most training in small firms is usually informal and on-the-job. Company owners, managers, or more experienced employees take responsibility for training. Employees are trained to do their jobs in the way that the owner prefers. Training tends to focus on the knowledge and skills that employees need for their current job not on developing skills needed for future positions. If any type of formal training and development is conducted, it is done through trade associations, short courses, and courses provided by the company’s owners and managers.

As firms grow in size there is a greater need to provide more formalized training and development to prepare current employees for internal promotion opportunities and retain them.

Roles of Employees and Managers

Traditionally, employees’ roles were to perform their jobs according to the managers’ directions. However, with the emphasis on the creation of intellectual capital and the movement toward high-performance work systems using teams, employees today are performing many roles that were reserved for management, such as hiring, scheduling work, and interaction with customers and suppliers. As such, employees require greater expertise.

Given the greater prevalence of teamwork, employees may require more cross training and training in interpersonal skills.

Managers’ jobs are highly complex, requiring training and a high level of skill. For example, they must:

· manage employee performance

· develop employees and encourage continuous learning

· plan and allocate resources

· coordinate activities and interdependent teams

· manage team performance

· facilitate individual and team decision-making processes

· create and maintain trust

· represent one’s work group to others

Top Management Support

Top management plays a key role in determining the importance placed on training and learning. Top management may assume any of the following roles:

· setting a clear direction for learning

· providing encouragement and resources

· taking an active role in governing learning

· developing or teaching new programs

· serving as a role model by demonstrating a willingness to learn

· promoting learning through various communication channels

Integration of Business Units

The degree of integration of business units affects the approach to training. In a highly integrated business, employees need to understand all parts of the company, and training must address those needs.

Global Presence

For companies with global operations, training is needed to prepare employees for overseas assignments. These companies must decide if training will be coordinated through a central U.S. facility or through satellite locations near overseas operations.

Business Conditions

When unemployment is low and/or businesses are growing at a high rate and need more employees, companies often find it difficult to attract new employees, find employees with necessary skills, and retain talent.

For companies in unstable business environments, characterized by mergers, acquisitions or disinvestments of businesses, training may be left up to managers and become short-term oriented.

For companies experiencing growth, training may be in greater demand among employees who want to qualify themselves for lateral job moves and promotions.

When companies are trying to revitalize and redirect, earnings may be flat and there are likely fewer incentives for participation in training programs.

When companies downsize, training must focus on ensuring continued employability.

Other HRM Practices

Companies that adopt state-of-the-art HRM practices that link to business strategy tend to demonstrate higher level of performance than firms that do not. Training, along with selection, performance management, and compensation influence attraction, motivation, and retention of human capital.

Staffing strategy refers to a company’s philosophy regarding where to find employees, how to select them, and the desired mix of employee skills and statuses (temporary, fulltime, etc.). Companies vary on such issues as the extent to which they rely on the internal labor market (i.e., current employees) versus the external labor market (i.e., job applicants from outside the company). Companies also vary to which they make promotion and job assignment decisions based on individual performance versus group or unit performance. These two dimensions can be crossed, resulting in four distinct companies.

· Fortress (external, group focus)—companies with limited resources for training that tend to recruit from the outside

· Baseball team (external, individual focus)—companies that require innovation and creativity; recruit from other companies or new graduates with specialized skills

· Club (internal, group focus)—companies in highly regulated industries that rely on developing their own talent

· Academy (internal, individual focus)—companies that require specialized skill and focus on developing their individual employees

Strategic Value of Jobs and Employee Uniqueness

Uniqueness refers to the extent to which employees are rare, specialized, and not highly available in the labor market. Strategic value refers to employee potential to improve company effectiveness and efficiency. These dimensions can be crossed to characterize four types of employees:

· Knowledge-based workers (high value and uniqueness)—require heavy training

· Job-based employees (high value and low uniqueness)—require less training than knowledge workers

· Contract employees (low value and low uniqueness)—require limited training

· Alliance/partnerships (high uniqueness and low value)—training would focus on sharing expertise and team training

Human resource planning allows the company to anticipate the movement of human resources in the company because of turnover, transfers, retirements, or promotions. Such planning can help identify where employees with certain types of skills are needed in the company. Training can be used to prepare employees for increased responsibilities in their current job, promotions, lateral moves, transfers, and downward moves or demotions that are predicted by the human resource plan.

Extent of Unionization

The presence of a union leads to joint union-management programs for preparing employees for new jobs, ensuring that all parties buy into the necessary training or changes. Given that unions have a significant impact on HR practices, they must be involved in determining strategic training priorities.

Staff Involvement in Training and Development

Managers need to be involved so that training stays related to business needs and training transfer can be supported. Managers become more involved in the training process if they are rewarded for participating. An emerging trend is to have employees initiate the training process, bearing the responsibility for planning their own development, with the company supporting their initiatives.

TRAINING NEEDS IN DIFFERENT STRATEGIES

It is important to recognize that there are different training needs for different business strategies.

A concentration strategy focuses on increasing market share, reducing costs, or creating and maintaining a market niche for products and services. Key human capital issues include: skill currency and the development of the existing workforce.

An internal growth strategy focuses on new market and product development, innovation, joint ventures, mergers, and globalization. Key human capital issues include: creation of new jobs and tasks, innovation, and talent management.

An external growth strategy focuses on acquiring vendors and suppliers or buying businesses to enable the company to expand into new markets. Key human capital issues include: integration, redundancy, and restructuring.

A disinvestment strategy focuses on retrenchment, turnaround, divestiture, and liquidation of businesses. A key human capital issue is efficiency.

MODELS OF ORGANIZING THE TRAINING DEPARTMENT

Centralized Training

One of the important decisions that companies have to consider in choosing how to organize the training department (or learning function) is the extent to which training and learning is centralized. Centralized training means that training and development programs, resources, and professionals are primarily housed in one location and decisions about training investment, programs, and delivery methods are made from that department.

There are several advantages of centralization.

· It helps drive stronger alignment with business strategy.

· It allows development of a common set of metrics or scorecards to measure and report rates of quality and delivery.

· It helps to streamline processes, and gives the company a cost advantage in purchasing training from vendors and consultants because of the number of trainees who will be involved.

· It helps companies better integrate programs for developing leaders and managing talent with training during times of change.

The Corporate University Model (Corporate Training Universities)

A corporate university includes employees, managers and stakeholders outside the company, including community colleges, universities, and high schools. Corporate universities can provide significant advantages for a company’s learning efforts by helping to overcome many of the historical problems that have plagued training departments (e.g., excessive costs, poor focus, and inconsistent use of training practices).

The corporate university model provides many training advantages:

· Dissemination of best practices

· Alignment of training with business needs

· Integration of training initiatives

· Effective use of new technology and methods

· Clear vision and mission

· Evaluation of learning focused on employee and business results

· Partnership with academia

The following are the steps involved in creating a corporate university:

· A governing body is formed by senior managers

· A vision statement is developed

· Funding sources are determined

· The degree to which all training will be centralized is assessed

· The needs of the university customers are identified

· Products and services are developed.

· Learning partners are selected

· Technologies to train employees more effectively are developed

· Learning is linked to performance improvement.

· The value of the corporate university is communicated to potential customers

Business-Embedded (BE) Learning Function

A BE helps to ensure that the learning function is centralized to some extent so that companies can better control their training costs and ensure that training is aligned with the business strategy, but at the same time respond quickly to client needs and provide high-quality services

A BE learning function is characterized by five competencies: strategic direction, product design, structural versatility, product delivery, and accountability for results. It views trainees, managers, and senior-level decision makers as customers of training.

The most noticeable feature of a BE learning function is its structure. In BE learning functions all persons who are involved in the training process communicate and share resources. Trainers—who are responsible for developing training materials, delivering instruction, and supporting trainees—work together to ensure that learning occurs. Trainers not only have specialized competencies, but also can serve as internal consultants by providing a range of services, such as needs assessment, content improvement, and the like.

There is an increasing trend for the training function to be organized by a blend of the BE with centralized training that often includes a corporate university. This approach allows the company to gain the benefits of centralized training, but at the same time ensures that training can provide programs, content, and delivery methods that meet the needs of specific businesses.

Learning, Training, and Development from a Change Model Perspective

Change is a constant in organizations. There are many reasons why companies are forced to change, including the introduction of new technology, the need to better take advantage of employee skills and capitalize on a diverse workforce, and the desire to enter global markets. The process of change is based on the interaction among four components of the organization: task, employees, formal organizational arrangements, and informal organization.

Four conditions are necessary for change to occur:

· Employees must understand the reasons for change and agree with those reasons.

· Employees must have the skills needed to implement the change.

· Employees must see that managers and other employees in powerful positions support the change.

· Organizational structures, such as compensation and performance management systems, must support the change.

Four change-related problems need to be addressed before the implementation of any new training practice, which include: resistance to change, loss of control, power imbalance, and task redefinition.

· Resistance to change refers to employees’ unwillingness to change.

· Control relates to employees’ ability to obtain and distribute valuable resources. Changes can cause employees to have less control over resources.

· Power refers to the ability to influence others. Managers may lose the ability to influence employees as employees gain access to databases and other information.

· Task redefinition relates to changes in roles and job responsibilities. Employees may not only be asked to participate in training, but also take on new responsibilities.

MARKETING TRAINING AND CREATING A BRAND

Despite its value, some individuals may not necessarily value training. As such, training often needs to be marketed so that key constituents value learning. Internal marketing involves making employees and managers excited about training and learning. It is especially important for trainers who act as internal consultants to business units. A variety of internal marketing tactics, include:

· Involving the target audience in developing the training or learning effort.

· Demonstrating how a training and development program can be used to solve specific business needs.

· Showing an example of how training has been successfully used to solve specific business needs in the past.

· Identifying a “champion” who actively supports training.

· Listening and acting on feedback received from clients, managers, and employees.

· Advertising on e-mail, on company Web sites, and in employee break areas.

· Designating someone in the training function as an account representative who will interact between the training designer and the “customer.”

· Determining what financial metrics top-level executives are concerned with and showing how training will help improve these.

· Speaking in terms that employees understand—avoid technical jargon.

· Winning a local or national training industry award or recognition.

· Publicizing learner or manager success stories or feature those who have earned certifications or degrees using newsletters or websites.

OUTSOURCING TRAINING

Business process outsourcing refers to the outsourcing of any business process, such as production, call center operations, and HRM functions. Outsourcing of training refers to the use of an outside company that takes complete responsibility for and control of training activities, including administration, design, delivery, and development. Companies may outsource training for a variety of reasons:

· Cost savings

· Time savings that allow a company to focus on business strategy

· Improvements in compliance with training mandated to comply with federal, state, or local rules

· The lack of capability within the company to meet learning demands

· The desire to access best training practices

However, companies may not outsource training due to an inability of outsourcing providers to meet company needs and the desire to maintain control. Any decision to outsource training is complex. Training functions that do not add any value to the company are likely candidates for outsourcing. Many companies have training functions that do add value to the business, but still may not be capable of meeting all training needs. Thus, certain aspects of training may be outsourced. Even when training is outsourced, it must be strategically aligned with the business goals and objectives.

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

CHAPTER 3

Needs assessment

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

1

Objectives (1)
Discuss the role of organization analysis, person analysis, and task analysis in needs assessment
Identify different methods used in needs assessment and identify the advantages and disadvantages of each method
Discuss the concerns of upper-level and mid-level managers and trainers in needs assessment
Explain how person characteristics, input, output, consequences, and feedback influence performance and learning

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Objectives (2)
Create conditions to ensure that employees are receptive to training
Discuss the steps involved in conducting a task analysis
Analyze task analysis data to determine the tasks in which people need to be trained
Explain competency models and the process used to develop them

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Why is needs assessment important?
Training may be incorrectly used as a solution to a performance problem
Programs may have the wrong content, objectives, or methods
Trainees may be sent to programs for which they do not have the basic skills, prerequisite skills, or confidence to learn
Training will not deliver the expected results
Money will be spent on training programs that are unnecessary

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Who should participate?
It is important that all relevant stakeholders be involved
Different stakeholders bring unique and needed perspectives to the process
Company leaders
Mid-level managers
Trainers
Employees
Subject matter experts (SMEs)

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
How should data be collected?
Various methods may be used to collect information. No one method is necessarily superior to another. There are strengths and limitations of each, and each may be more relevant in some contexts than others.

Jump to HOW SHOULD DATA BE COLLECTED? Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

6

OBSERVATION
ADVANTAGES
relevant data
minimizes interruption of work
DISADVANTAGES
requires skill in observation
employee behavior may be affected by observation

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
survey
ADVANTAGES
inexpensive
can collect data from a large number of individuals
data easily summarized
DISADVANTAGES
requires time
potentially low response rates
may lack detail
only provides information directly related to questions asked

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
INTERVIEW
ADVANTAGES
good at uncovering detail
can explore unexpected issues
questions can be modified
DISADVANTAGES
time consuming and difficult to schedule
difficult to analyze
need skilled interviewers
can be threatening to SMEs
SMEs may provide socially desirable information

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Focus groups and crowdsourcing
ADVANTAGES
useful for complex or controversial issues
can explore unexpected issues
reduces risk that training will be rejected by stakeholders
DISADVANTAGES
time consuming to organize
group members may only provide socially desirable responses

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Documentation
ADVANTAGES
good source of information
objective
good source of task information for new jobs and jobs in the process of being created
DISADVANTAGES
may be difficult to understand
potentially obsolete

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Technology
ADVANTAGES
objective
minimizes work interruption
limited human involvement
DISADVANTAGES
may threaten employees
managers may use data to punish versus train

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Historical data review
ADVANTAGES
provides data related to performance and practices
DISADVANTAGES
data may be inaccurate, incomplete, or not fully reflective of performance

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Three levels of analysis

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

14

Organization analysis
There are three factors to examine to determine if training is the appropriate solution
The company’s strategic direction
Social support to ensure that individuals are motivated to attend training, learn, and transfer
Training resources, time, and expertise

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Person analysis
Helps to identify who needs training
Also known as gap analysis, which involves determining what is responsible for the differences between current and expected performance
Involves obtaining a variety of information on person characteristics, inputs, outputs, consequences, and feedback

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Basic skills
Basic skills are those necessary for employees to learn training content and perform successfully on the job
A literacy audit can be used to assess employees’ basic skill levels

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Cognitive ability
Cognitive ability relates to intellectual capacity and general intelligence
Includes verbal comprehension, quantitative ability, and reasoning ability
Assessing cognitive ability is important because it is one of the strongest determinants of training success

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Reading ability
Training material should be evaluated to ensure that its reading level does not exceed that required by the job and trainees’ abilities
If trainees’ reading ability is low:
use other training methods
reassign trainees to different positions
provide remedial training

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Self-efficacy
Self-efficacy relates to trainees’ beliefs that they can master training content and perform on the job
If trainees lack confidence, motivation will suffer

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Enhancing self-efficacy
Let trainees know the goal is to improve performance and not reveal incompetence
Providing information about training prior to the program
Describe the success of peers
Emphasize that learning is under trainees’ control
Emphasize that trainees have the ability to overcome obstacles

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Needs, Career Interests, & Goals
Awareness of training needs, career interests, and goals enhances motivation to learn
The link between training and areas where employees need to improve should be emphasized

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
age
There is biological evidence that certain mental capacities decrease from age twenty to age seventy
However, with age comes experience
Trainers may need to adapt training design and delivery accordingly

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Generational differences
Gen Zs are entrepreneurial and tech-savvy
Millennials are optimistic, embrace technology, and appreciate diversity
Gen Xers need feedback and flexibility and dislike close supervision
Baby Boomers are competitive, hardworking, and concerned with fairness
Traditionalists are patriotic, loyal, and have a great deal of knowledge

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Inputs
Inputs relate to resources employees need to help them learn
Situational constraints include lack of tools, equipment, materials, supplies, budgetary support, and time to perform
Social support refers to manager and peer willingness to provide feedback and reinforcement

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Outputs
Outputs refer to job performance outcomes
Therefore, it is important to assess employee perceptions of performance expectations
Trainees need to understand the level of expected proficiency

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Consequences
Consequences refer to the type of rewards that employees receive for performing well
If employees do not believe rewards are adequate, motivation will suffer
Motivation to learn can be enhanced by communicating the job, personal, and career benefits of learning

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Feedback
Feedback refers to the information that employees receive
Employees need specific and detailed feedback
Feedback also needs to be frequent to influence performance

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Is training the best solution?
Is the performance problem important and potentially costly?
Do employees know how to perform effectively?
Can employees demonstrate the correct knowledge or behavior?
Were performance expectations clear?
Were positive consequences offered for good performance?
Did employees receive appropriate feedback?
Were other solutions too expensive or unrealistic?

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Task analysis
Results in a description of the tasks to be performed and the knowledge, skills and abilities required to perform
A job is a specific work position involving the completion of a defined set of related tasks
A task is a specific work activity that is a component of a job

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
ksaoS
To complete a task, employees must possess the necessary KSAOs
Knowledge includes facts, figures, and procedures
Skill is the competency to perform a task
Ability refers to physical and mental capacities
Other requirements include conditions under which tasks are performed

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Task analysis steps

Jump to
TASK ANALYSIS STEPS
Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

32

COMPETENCY MODELS
A competency model identifies the competencies necessary for a given job
They provide descriptions of competencies that are common for an entire occupation, organization, job family, or specific job
They are useful for variety of HR practices, including recruiting, selection, and training and development

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
WHY ARE COMPETENCY MODELS VALUABLE?
They identify behaviors needed for effective performance
They provide a tool for determining what skills are necessary to meet current and future needs
They help to determine what skills are needed at different career points
They provide a framework for ongoing coaching and feedback
They create a “road map” for developing future managers
They provide a common set of criteria to identify training activities

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Developing a competency model

Jump to
DEVELOPING A COMPETENCY MODEL
Long Description

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

35

Scope of needs assessment (1)
Often managers and trainers may avoid conducting a needs assessment
They may provide a variety of excuses
Without conducting a proper needs assessment, training will not be well targeted

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Scope of needs assessment (2)
A needs assessment in practice would not collect all information presented in the text, but should be tailored to situation at hand
Due to time constraints, sometimes a rapid needs assessment would be appropriate
A rapid needs assessment refers to a needs assessment that is done quickly and accurately without sacrificing the quality

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Appendix of Image Long Descriptions

How should data be collected? Long Description
At the bottom of the slide are different methods for conducting a needs assessment in different boxes (from left to right):
Observation
Survey
Interview
Focus Groups & Crowdsourcing
Documentation
Technology
Historical Data Review
Jump back to HOW SHOULD DATA BE COLLECTED?

39

Task analysis steps Long Description
This slide presents the steps in conducting a task analysis with an arrow (from left to right):
Select the jobs to be analyzed
Develop a preliminary list of tasks to be analyzed
Validate the list of tasks with SMEs
After the most important tasks have been identified, identify the most important KSAOs
Jump back to
TASK ANALYSIS STEPS

Developing a competency model Long Description
This slide presents the steps in developing a competency model with an arrow (from left to right):
Identify business strategy and goals
Identify jobs, positions, or job families
Conduct interviews and focus groups with top performers
Develop competencies and the competency model
Validate and review the model
Jump back to
DEVELOPING A COMPETENCY MODEL

Page 8

CHAPTER 3

Needs Assessment

This chapter provides a thorough treatment of the needs assessment process, which is a critical first step in designing and revising training courses and other learning activities. Without a proper needs assessment, training may not target the appropriate content, and the right individuals may not be identified for training. To help ensure that training is appropriately focused, it is important that a thorough needs assessment be conducted. Toward this end, this chapter addresses the needs assessment process from multiple perspectives and describes a variety of methods that can be utilized to conduct a needs assessment. This chapter highlights that assessing training needs is more complex than might be typically assumed and addresses the most important factors to consider in this fundamental step of the training design process.

OBJECTIVES

1. Discuss the role of organization analysis, person analysis, and task analysis in needs assessment.

2. Identify different methods used in needs assessment and identify the advantages and disadvantages of each method.

3. Discuss the concerns of upper-level and mid-level managers and trainers in needs assessment.

4. Explain how person characteristics, input, output, consequences, and feedback influence performance and learning.

5. Create conditions to ensure that employees are receptive to training.

6. Discuss the steps involved in conducting a task analysis.

7. Analyze task analysis data to determine the tasks in which people need to be trained.

8. Explain competency models and the process used to develop them.

INTRODUCTION

Needs assessment refers to the process of determining learning needs and opportunities and determining whether training is necessary. Needs assessment involves organizational analysis, person analysis, and task analysis. This multi-level perspective helps to guarantee that different perspectives are taken into account during the assessment process.

· Organization analysis involves determining the appropriateness of training for the organization overall, given its strategy, resources, and support for training.

· Person analysis involves determining whether performance deficiencies result from lack of ability or from a motivational or work-design problem. It also involves determining who needs training and employee readiness for training.

· Task analysis identifies the important tasks, knowledge, skills, and behaviors that need to be addressed in training.

WHY IS NEEDS ASSESSMENT NECESSARY?

If needs assessment is not properly conducted, the following situations could occur.

· Training may be incorrectly used as a solution to a performance problem.

· Training programs may have the wrong content, objectives, or methods.

· Trainees may be sent to training programs for which they do not have the basic skills, prerequisite skills, or confidence to learn.

· Training will not deliver the expected learning, behavior change, or financial results.

· Money will be spent on training programs that are unnecessary because they are unrelated to the company’s business strategy.

There are many pressure points that might suggest that training is necessary. Examples of such pressure points include:

· legislation

· lack of basic skills

· poor performance

· new technology

· customer requests

· customer dissatisfaction

· new products and innovations

· higher performance standards

Pressure points do not automatically mean that training is the correct solution. Depending on the specific circumstances, employee selection, better on-the-job supervision, or job redesign might be a better solution.

It is important to consider the outcomes of needs assessment, which set the stage for the remaining steps of the training design process. Knowledge of outcomes will help ensure that the most appropriate data are collected during the needs assessment process. Examples of outcomes include:

· what trainees need to learn

· who receives training

· type of training needed

· frequency of training

· buy versus build training decision

· other HRM solutions

WHO SHOULD PARTICIPATE IN NEEDS ASSESSMENT?

Because the goal of needs assessment is to determine whether a training need exists, it is important that all relevant stakeholders be involved. Stakeholders include those who have an interest in training and whose support is important for determining its success.

Key stakeholders include company leaders, mid-level managers, trainers, and employees.

· Company leaders want to anticipate training needs, align them with business strategy, and ensure that learning efforts are integrated in a way that adds value to the company.

· Mid-level managers are more concerned with how training might affect the attainment of financial goals for their particular units. They must determine how much of their budget will be devoted for training, the types of employees who should receive training, and what jobs should be the focus of training.

· Trainers need to consider whether training is aligned with business strategy, whether training should be purchased or developed in-house, what content should be the focus of training, what training methods employees find preferable, and the degree of management support for training.

· Employees should diagnose their own learning needs for their current job and future employment prospects. Employees should also consider their motivation to learn.

Subject matter experts (SMEs) should also be consulted in the needs assessment process. SMEs have expertise knowledge about the training issue at hand. SMEs could include a variety of individuals such as employees, managers, technical experts, suppliers, and academics who are knowledgeable. SMEs could lend their expertise regarding:

· training issues, including the tasks to be performed

· knowledge, skills, and abilities required to perform tasks effectively

· the necessary equipment

· conditions under which tasks will have to be performed

METHODS USED IN NEEDS ASSESSMENT

Various methods may be used to collect information. No one method is necessarily superior to another. There are strengths and limitations of each, and each may be more relevant in some contexts than others.

Observation

Advantages: relevant data; minimizes interruption of work

Disadvantages: requires skill in observation; employee behavior may be affected by being observed

Survey

Advantages: inexpensive; can collect data from a large number of individuals; data easily summarized

Disadvantages: requires time; potentially low response rates; may lack detail; only provides information directly related to questions asked

Interview

Advantages: good at uncovering detail; can explore unexpected issues; questions can be modified

Disadvantages: time-consuming; difficult to analyze; needs skilled interviewers; can be threatening to SMEs; difficult to schedule; SMEs provide only such information they think you want to hear

Focus groups and crowdsourcing

Advantages: useful for complex or controversial issues; can explore unexpected issues; reduces risk that training based on needs assessment will be rejected by stakeholders

Disadvantages: time consuming to organize; group members provide only information they think you want to hear

Documentation

Advantages: good source of information; objective; good source of task information for new jobs and jobs in the process of being created

Disadvantages: may be difficult to understand; potentially obsolete

Technology

Advantages: objective; minimizes work interruption; limited human involvement

Disadvantages: may threaten employees; managers may use data to punish versus train

Historical Data Review

Advantages: provides data related to performance and practices

Disadvantages: data may be inaccurate, incomplete, or not fully reflective of performance

Many companies are also using information about other companies’ training practices (benchmarking) to help determine the appropriate type, level, and frequency of training.

THE NEEDS ASSESSMENT PROCESS

Companies need to consider information from organizational, person, and task analyses before the decision is made to devote time, money, and resources to training.

Organizational Analysis

Organizational analysis focuses on three factors to examine to determine if training is the appropriate solution:

1. the company’s strategic direction

2. support of managers, peers, and employees for training

3. training resources

The company’s strategic direction influences what competencies are required to help the company achieve its goals and objectives and the role of training in helping to develop human capital.

Social support is important to ensure that individuals are motivated to attend training, engage in the learning process, and transfer knowledge and skills to the workplace upon completion of training. As such, it is important to assess whether support is present during the needs assessment process. Consider support of managers, peers, and employees for training.

Training resources—including money, time and expertise—need to be identified in the organizational analysis phase. One of the key questions that needs to be answered is whether the organization should develop training itself or whether it should buy training from an outside consultant or vendor. This is known as the “buy versus build” decision.

Person Analysis

Person analysis focuses on identifying whether there is evidence that training is the solution, who needs training, and whether employees have the prerequisite skills, attitudes, and beliefs needed to ensure that they master the content of training programs. Because performance problems are one of the major reasons that companies consider training for employees, it is important to investigate how personal characteristics, input, output, consequences, and feedback relate to performance and learning.

A gap analysis includes determining what is responsible for the difference between employees’ current and expected performance. The need for training may result from the pressure points discussed beforehand.

Person analysis also helps determining employees’ readiness for training. Readiness for training refers to whether (1) employees have the personal characteristics necessary to learn program content and apply it on the job, and (2) the work environment will facilitate learning and not interfere with performance.

The Process for Person Analysis

Person analysis involves obtaining information on person characteristics, inputs, outputs, consequences, and feedback.

Person Characteristics

Person characteristics refer to employee knowledge skills, ability, and attitudes.

Basic skills are those necessary for employees to perform successfully on the job and learn the content of training programs. A literacy audit can be used to indicate employees’ basic skill levels.

Cognitive ability relates to intellectual capacity and general intelligence. Cognitive ability includes verbal comprehension, quantitative ability, and reasoning ability. A number of standardized tests are available to assess cognitive ability. Assessing cognitive ability is particularly important because it is one of the strongest determinants of training success.

Reading ability is important to consider because training materials should be properly aligned. As such, material used in training should be evaluated to ensure that its reading level does not exceed that required by the job and trainees’ abilities. If trainees’ reading ability is low, other training methods could be employed, employees could be reassigned to different positions, or remedial training could be provided.

Self-efficacy relates to employees’ beliefs that they can master training content and perform on the job. Self-efficacy can be improved by: 1) letting employees know that the purpose of the training is to improve performance rather than reveal incompetence; 2) providing as much information as possible about the training program and its purpose prior to the training; 3) explaining to employees the training successes of their peers; and 4) emphasizing to employees that learning is under their control and that they have the ability to overcome obstacles.

Awareness of training needs, career interests, and goals helps employees be motivated to learn. The link between training and areas where employees need to improve should be emphasized.

Age and generation should be considered for a number of reasons. There is biological evidence that certain mental capacities decrease from age twenty to age seventy. At older ages, memory loss is much greater because mental resources are more depleted. However, with age comes experience, which can compensate.

Regarding generational differences, each generation may have specific preferences for the arrangement of the learning environment, type of instruction, and learning activities. For example, traditionalists prefer a stable, orderly training environment and expect the instructor to provide expertise. However, Gen Xers prefer more of a self-directed training environment in which they can experiment and receive feedback.

Inputs

Inputs relate to resources employees need to help them learn. Inputs regarding two aspects of the work environment—situational constraints and social support—are important determinants of motivation to learn and performance. Situational constraints include lacking the necessary tools and equipment, materials and supplies, budgetary support, and time to perform. Social support refers to managers’ and peers’ willingness to provide feedback and reinforcement. If employees have the knowledge, skills, attitudes, and behavior needed to perform but do not have the proper resources and support, their performance will suffer.

To ensure that the work environment supports trainees’ motivation to learn:

· Provide materials, time, information, and work aids necessary for employees to use new skills before the training begins.

· Speak positively about the company’s training initiatives to employees.

· Reinforce employees using new skills, knowledge or behaviors.

· Provide feedback to encourage employees to support each other in using new skills.

· Provide the time and opportunities to practice and apply new skills and behaviors.

Outputs

Outputs refer to a job’s performance outcomes. Therefore, it is important to assess employees’ perceptions of their performance expectations. Lack of awareness of performance standards may result in substandard performance. Understanding the need to perform up to standards is important for learning to occur. To ensure that trainees master training content at the appropriate level, trainees need to understand the level of proficiency that is expected.

Consequences

Consequences refer to the type of rewards that employees receive for performing well. If employees do not believe rewards or incentives are adequate, they may not be motivated to perform. Furthermore, workgroup norms may encourage employees not to meet standards. Trainees’ motivation to learn can be enhanced by communicating to them the job, personal, and career benefits of learning.

Feedback

Feedback refers to the information that employees received. Employees need specific, detailed feedback regarding performance. Feedback also needs to be frequent to influence performance.

Determining Whether Training Is the Best Solution

A root cause analysis is often used to determining whether training is the best solution. A root cause analysis refers to the process of determining whether training is the best or most likely solution to a performance problem or gap. Managers need to ask themselves the following questions:

· Is the performance problem important and potentially costly if not addressed?

· Do employees know how to perform effectively?

· Can employees demonstrate the correct knowledge or behavior?

· Were performance expectations clear?

· Were positive consequences offered for good performance?

· Did employees receive appropriate feedback?

· Were other solutions too expensive or unrealistic?

Task Analysis

Task analysis results in a description of the tasks to be performed on the job and the knowledge, skills and abilities required to perform those tasks. A job is a specific work position involving the completion of a defined set of related tasks. A task is a specific work activity that is a component of a job. A task analysis should be undertaken only after the organization has determined that it will devote time and energy toward training.

To complete a task, employees must possess the necessary knowledge, skill, ability, and other requirements (KSAOs)

· Knowledge includes facts, figures, and procedures.

· Skill is the competency to perform a task.

· Ability refers to the physical and mental capacities required to perform a task.

· Other considerations include conditions under which tasks are performed, such as necessary equipment, time constraints, safety considerations, or performance standards.

There are four primary steps to a task analysis:

· Select the job(s) to be analyzed.

· Develop a preliminary list of tasks to be analyzed by interviewing others or through observation.

· Validate the list of tasks with SMEs to determine how frequently the task is performed, how important it is, and its difficulty.

· After the most important tasks have been identified, identify the most important KSAOs.

COMPETENCY MODELS

A competency model identifies the competencies necessary for a given job. Competency models provide descriptions of competencies that are common for an entire occupation, organization, job family, or specific job. Competency models can be used for performance management. However, one of the strengths of competency models is that they are useful for a variety of human resource (HR) practices, including recruiting, selection, training, and development.

Competency models typically include the name of each competency, the behaviors that represent proficiency in the competency, and levels that include descriptions representing demonstrated levels of mastery or proficiency.

The process used in developing a competency model includes five steps:

· Identify business strategy and goals.

· Identify jobs, positions, or job families.

· Conduct interviews and focus groups with top performers.

· Develop competencies and the competency model.

· Validate and review the model.

Competency models are useful in several respects:

· They identify behaviors needed for effective job performance.

· They provide a tool for determining what skills are necessary to meet today’s needs and the company’s future skill needs.

· They help to determine what skills are needed at different career points.

· They provide a framework for ongoing coaching and feedback to develop employees for current and future roles.

· They create a “road map” for identifying and developing employees who may be candidates for managerial positions (succession planning).

· They provide a common set of criteria that are used for identifying appropriate training activities for employees, as well as for evaluating and rewarding them. This helps integrate and align the company’s HR systems and practices.

SCOPE OF NEEDS ASSESSMENT

Often managers and trainers may avoid conducting a needs assessment. They may provide a variety of excuses, citing that doing so would be too costly, time consuming, complex, and unnecessary. However, without conducting a proper needs assessment, training will not be well targeted, and training will fail to meet its desired objectives. This chapter highlights that a wide variety of information can be collected in conducting a needs assessment. A needs assessment in practice would not collect all such information, but should be tailored to the specific training and organizational context. Due to time constraints, sometimes a rapid needs assessment needs to be conducted. A rapid needs assessment refers to a needs assessment that is done quickly and accurately, but without sacrificing the quality of the process or the outcomes.

Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.