CH-1-2 Introduction to Employee Training and Development – Employee Training and Development : Book Guide

This Document Contains Chapters 1 to 2 Chapter One 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 a snapshot 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 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. 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. 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. Formal training and development refers to training and development programs, courses, and events that are developed and organized by the company. 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. 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. Tacit knowledge refers to personal knowledge based on individual experiences that is difficult to codify. 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: • 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 • Select training methods and deliver training—design and conduct training • 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. Some have criticized the ISD model for a number of reasons. The training design process rarely follows the neat, orderly, step by-step approach. Furthermore, adhering to the model may represent an administrative burden and be too costly. The ISD model also implies an end point. However, the training process is more dynamic, fluid, and iterative. 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 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. For example, companies that used more selective staffing and training before the recession of 2009 performed better and recovered more quickly. Despite companies looking to add new employees and expand operations, they may be unable to find new employees with the skills they need. Globalization Global companies are struggling to find and retain talented employees, especially in emerging markets. Companies often place U.S. managers in charge of overseas assignments. They provide cross-cultural training to such employees and their family to help them understand the culture of the host country and assists in their return. Globalization also means that employees working in the U.S. will come from other countries for low-skill jobs and jobs requiring advanced degrees, such as engineering. Furthermore, U.S. companies will have to carefully consider the costs and benefits of moving jobs overseas or using foreign suppliers. Offshoring refers to the process of moving jobs from the U.S. to other locations in the world. 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. There are different types of capital in addition to financial capital. • Human capital refers to the sum of the attributes, life experiences, knowledge, inventiveness, energy, and enthusiasm that a company’s employees invest in their work. • Intellectual capital refers to the codified knowledge that exists within a company. • Social capital refers to relationships among individuals within a company. • Customer capital refers to the value of relationships with persons or other organizations outside the company. 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. The role of training and business strategy is the focus of Chapter Two. 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. Generational Differences Five generations (generation Z, generation Y, generation X, baby boomers, and traditionalists) are participating in today’s workforce, each one with unique characteristics. 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 to attract, retain, develop, and motivate highly skilled employees and managers. Talent management is becoming more important because of changes in demand for certain occupations and jobs, skill requirements, the retirement of baby boomers, and the need to develop the next generation of leaders. In addition, surveys suggest that opportunities for career growth and development are some of the most important factors to promote employee engagement. As the occupational structure of the U.S. economy has shifted, skill requirements have changed. The demand for specific skills has shifted to cognitive skills and interpersonal skills. Cognitive and interpersonal skills are important because employees must often take the responsibility for delivering the final product and service in today’s service economy. Many companies report that their most important talent management challenges are identifying employees with managerial talent and preparing them for such careers. This is attributed to the aging workforce, globalization, and the need for managers to enhance employee engagement. Customer Service and Quality Emphasis To compete in today’s economy, companies need to provide a quality product or service. Total Quality Management (TQM) is a companywide effort to continuously improve the ways people, machines, and systems accomplish work. The Malcolm Baldrige National Quality Award and the ISO 9000:2000 quality standards were established to emphasize and recognize high quality. They were also established to publicize strategies and expectations for quality. The ISO standards have been adopted as the national quality standards in nearly 100 countries. These standards are often used in manufacturing, processing, servicing, printing, forestry, electronics, steel, computing, legal services, and financial services. Many companies are also using the Six Sigma process 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. Lean thinking involves doing more with less effort, equipment, space, and time, while providing customers with what they need and want. New Technology Advances in technology (e.g., smartphones, notebook computers, and the like) have had a significant impact on how training is delivered. These advances allow training to occur at any time and place. They have also made training more realistic and more consistent. Many organization’s use blended learning models that include live face-to-face training and training delivered via information technology. For example, training could include a classroom component and then a supplemental online component. More and more learning is built around social media, where employees share knowledge with their managers and peers, particularly those they do not have access to on a daily basis. Younger individuals have learned through social media tools and see it as a valuable tool for both their personal and work lives. Many companies, however, fear that social networking will result in employees wasting time. Technology also allows companies greater use of alternative work arrangements. Employees are not confined to a particular location and schedule. Telecommuting has the potential to increase employee productivity, enhance work-life balance, and help reduce traffic and air pollution. A key training issue with alternative work arrangements is to prepare managers and employees to coordinate their efforts so such work arrangements do not interfere with customer service or product quality. 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 refer to teams that are separated by time, geographic distance, culture, and/or organizational boundaries and that rely almost exclusively on technology (e-mail, Internet, video conferencing) to interact and complete their projects. The success of virtual teams requires a clear mission, good communication skills, trust between members, and an understanding of cultural differences, as appropriate. SNAPSHOT OF TRAINING PRACTICES Training Facts and Figures • Direct expenditures, as a percentage of payroll and learning hours, have remained stable over the last several years. • There is an increased demand for specialized learning that includes professional or industry-specific content. • The use of technology-based learning delivery has increased from 33 percent in 2010 to 39 percent in 2012. • Self-paced online learning is the most frequently used type of technology-based learning. • Technology-based learning has helped improve learning efficiency. • Technology-based learning has resulted in a larger employee–learning staff member ratio. • The percentage of services distributed by external providers has remained the same since 2010. Training Investment Leaders Higher investment in training by companies 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. The Association for Talent Development (ATD) BEST Award winners were 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. 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 Traditional narrow jobs focusing on one type of expertise are changing. Having multiple areas of training expertise is becoming a greater necessity. 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? A variety of individuals may be in charge of training, depending on the context. In small companies, training is typically the responsibility of the founder and all employees. In mid-size to large companies, training can be the responsibility of training professionals or a specific function, such as HR, talent management, or organizational development. The training function may include instructional designers, instructors, technical training, and experts in information technology. 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) DISCUSSION QUESTIONS 1. Describe the forces affecting the work place and learning. How can training help companies deal with these forces? A number of forces are impacting the workplace and learning, including: economic cycles, globalization, customer service and quality emphasis, talent management, new technology, increased value placed on human capital, focus on business strategy, changing demographics and diversity, and high-performance work systems. Training can improve professional conduct, improve job performance by teaching new techniques and skills, and increase a company’s productivity and customer satisfaction. 2. Discuss the relationship between formal training and development, informal learning, and knowledge management. How are they related to learning and creating a learning organization? Formal training and development refers to training and development programs, courses, and events that are developed and organized by the company. Typically, employees are required to attend or complete these programs, which can include face-to-face training programs (such as instructor-led courses) as well as online programs. Informal learning is also important for facilitating the development of human capital. 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 occurs without a trainer or instructor, and its breadth, depth, and timing is controlled by the employee. 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. Knowledge management contributes to informal learning and human capital development. 3. What steps are included in the training design model? What step do you think is the most important? Why? Step 1 is to conduct a needs assessment, which is necessary to identify if training is needed. Step 2 is to ensure that employees have the motivational and basic skills necessary to master the training content. Step 3 is to create a learning environment that has features necessary for learning to occur. Step 4 is to ensure that there is the necessary support in the work environment for trainees to apply training content to their jobs. Step 5 is to develop an evaluation plan. Developing an evaluation plan is important to determine if training worked, how it can be improved, and how training affects the “bottom line.” Step 6 is to choose the training method based on the learning objectives and learning environment and to deliver training. Step 7 is to evaluate the program and make changes in it or revisit any of the earlier steps in the process. All of the steps in the model are important. Students’ answers regarding which step is most important will vary based on their individual perspectives. 4. What are intangible assets? How do they relate to training and development? Intangible assets consist of human capital, customer capital, social capital, and intellectual capital. Intangible assets have been shown to be responsible for a company’s competitive advantage. Training can help a company’s competitiveness by directly increasing the company’s value through contributing to intangible assets. Intangible assets are equally as valuable as financial and physical assets, but they are not something that can be easily imitated or duplicated. 5. How is Starbucks using training to benefit the company during difficult economic times? In addition to raising pay, Starbucks has focused on learning as a way to attract and retain employees and show it is committed to their success. Starbucks College Achievement Plan pays employees tuition for an online bachelor’s degree from Arizona State University. The only requirements are that employees have to be working at least twenty hours each week, are US-based working in support centers, plants or at any of its company-operated stores, and do not yet have a bachelor's degree Employees admitted to Arizona State as a junior or senior will earn full tuition reimbursement for each year of coursework they complete toward a bachelor’s degree. Those admitted as freshmen and sophomores will receive a partial scholarship and need-based financial aid toward completing their degree. Employees have no commitment to remain at Starbucks after they graduate. 6. Training professionals continue to debate whether the ISD model is flawed. Some argue that ISD should be treated as a project management approach rather than a step- by- step recipe for building training programs. Others suggest that ISD is too linear and rigid a process, that it is the primary reason that training is expensive and that it takes too long to develop. ISD focuses on inputs; management wants outputs. Businesses want results, not the use of a design technology. Do you believe that ISD is a useful process? Why or why not? Are there certain situations when it is a more (or less) effective way to design training? The training design process is useful because it gives a systematic approach to training. Designing training unsystematically will reduce the benefits that can be achieved. For example, choosing a training method before determining training needs or ensuring employees’ readiness for training increases the risk that the method chosen will not be the most effective. Also, training may not even be necessary and may result in a waste of time and money. Some have criticized the ISD model for a number of reasons. The training design process rarely follows the neat, orderly, step by-step approach. Furthermore, adhering to the model may represent an administrative burden and be too costly. The ISD model also implies an end point. However, the training process is more dynamic, fluid, and iterative. 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. 7. Which of the training professionals’ roles do you believe is the most difficult to learn? Which is easiest? • The learning strategist determines how workplace learning can be best used to help meet the company’s business strategy. • The business partner uses business and industry knowledge to create training that improves performance. • The project manager plans, obtains, and monitors the effective delivery of learning and performance solutions to support the business. • The professional specialist designs, develops, delivers, and evaluates learning and solutions. These roles are included in jobs such as organizational change agent, career counselor, instructional designer, and classroom trainer. 8. How might technology influence the importance of training professionals’ roles? Can technology reduce the importance of any of the roles? Can it result in additional roles? Given that technology removes some of the human element in training delivery, trainers likely spend less time with one-on-one live instruction and classroom instruction. There is likely a greater emphasis on the design of online programs, which requires a different skill set. As technology may free up time and resources for trainers, trainers may spend more time evaluating programs and identifying ways to ensure transfer of trained skills to the workplace. Trainers may also have a greater impact because they can reach more employees through the use of enhanced technology. 9. Describe the training courses that you have taken. How have they helped you? Provide recommendations for improving the courses. As answers will vary from student to student, try to identify similarities and differences in their responses. Emphasize that training courses can be improved by following the ISD model. If I were to recommend improvements, focusing on real-time learning and adaptability to specific user needs would enhance the experience. Additionally, incorporating more diverse and context-rich training would allow for even more nuanced and accurate responses. 10. How does training differ between companies that are considered BEST Award winners and those that are not? • Alignment of business strategy with training • Visible support from top management • Efficiency in training through process improvement, technology, and outsourcing • Providing all employees with access to training on an as-needed basis • A variety of learning opportunities provided • Measurement of training effectiveness • Use of non-training solutions where appropriate 11. What are the implications of generational differences in the workforce? What strategies should companies consider from a training and development perspective to cope with generational differences and use them to benefit the company? Although generation differences likely exist, members of the same generations are no more alike than members of the same gender or race. Differences in work ethic have been found between baby boomers, Generation Xers, and millennials. However, millennial employees are more similar than different from other generations in their work values. Training plays a key role in ensuring that employees accept and work more effectively with each other. To successfully manage a diverse workforce, 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 based on gender, ethnicity, or physical handicap • Training managers to recognize and respond to generational differences • Creating a work environment that allows employees of all backgrounds to be creative and innovative 12. How has new technology improved training and development? What are some of the limitations of using smartphones or notebooks for training? Advances in sophisticated 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. Technology has many advantages, including reduced travel costs, greater trainee accessibility, consistent diversity, and the ability to access experts. Technological advances have enhanced the capability for social networking and the ability to learn from others. Despite its potential advantages, many companies are uncertain as to whether they should embrace new technology for training. For example, some organizations may fear that employees may waste time with social networking and that it is difficult to ensure employee engagement and compliance with such training. 13. Explain how training relates to attracting new employees, employee retention, and motivation. Training is an effective means to attract talented employees who seek to advance their careers. Extensive training may also draw individuals to organizations when individuals lack certain skills or are seeking a career change. When employees are properly trained, they possess the knowledge, skills, and abilities to successfully perform their job responsibilities. In this regard, employees may be more apt to remain with an organization. Finally, when employees see ongoing training opportunities, they may be more likely to remain with an organization because such training may lead to long-term employment prospects. 14. What is the relationship between talent management and employee engagement? What role can training and development practices play in keeping employee engagement high? Explain. Talent management can serve to enhance employee engagement. Talent management gives employees an opportunity for personal growth within the company and allows them to perform their current jobs well. Training is one key part of the talent management process. It should be noted that training opportunities need to be well designed and job relevant. If not, employees may be disengaged and perceive training as a waste of time. 15. How can training, informal learning, and knowledge management benefit from the use of social collaboration tools like Twitter and Facebook? Identify the social collaboration tool and explain the potential benefits gained by using it. In general, social networking facilitates communications, decentralized decision making, and collaboration. Social networking can be useful for busy employees to share knowledge and ideas with their peers and managers, with whom they may not have much time to interact in person on a daily basis. Employees, especially younger ones, have learned to use social networking tools and see them as valuable tools for both their work and personal lives. Informal learning can occur through many different ways, including casual unplanned interactions with peers, e-mail, informal mentoring, or company-developed or publically available social networking websites such as Twitter or Facebook. Social media can greatly facilitate learning from others. Chapter Two 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 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 should be 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 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. Along the same lines, training evaluation is now more concerned with whether it impacts the “bottom line,” not just whether trainees have learned new knowledge and skills. 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. However, these single training activities will need to be a part of a larger strategic training system. LEARNING AS A STRATEGIC FOCUS The Learning Organization Learning organization is a term for a company that has an enhanced capacity to learn, adapt, and change. A single training event or program is not likely to give a company a competitive advantage because explicit knowledge is well-known and programs designed to teach it can be easily developed and imitated. However, tacit knowledge developed through experiences and shared with others is more difficult to imitate. As such, tacit knowledge is more fundamental to enhance competitive advantage. Key features of a learning organization include a supportive learning environment, learning processes and practices, and reinforcement of learning by managers. 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 that will prepare them for future success. THE STRATEGIC TRAINING AND DEVELOPMENT PROCESS The strategic training and development process involves four steps: • Identify the organization’s business strategy • Determine strategic training initiatives that align with this strategy • Translate these initiatives into concrete learning activities • Identify metrics to determine whether training has contributed to goals related to the business strategy Identify the Business Strategy Strategic training begins with the knowledge of an organization’s business strategy. Formulating a business strategy involves several interrelated steps. • Determine the company’s mission—the company’s reason for existing • Establish company goals—what the company hopes to achieve • Perform 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. • Determine 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 learning-related actions that a company should take to help it achieve its business strategy. The initiatives are based on the business environment, an understanding of the company's goals and resources, and insight regarding potential training options. There is a tendency for a disconnect between strategy and execution. Accordingly, learning professionals must reach out to managers to ensure alignment and garner necessary resources and support. Strategic training initiatives provide a road map to guide specific training activities and articulate 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 Activities Linked to Initiatives The next step in the process is to determine specific, concrete activities that align with the strategic initiatives. 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. 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 (such as training) from the perspective of internal and external customers, employees, and shareholders. The balanced scorecard considers four different perspectives: • Customer (time, quality, performance, service, cost) • Internal business processes (processes that influence customer satisfaction) • Innovation and learning (operating efficiency, employee satisfaction, continuous improvement) • Financial (profitability, growth, shareholder value) ORGANIZATIONAL CHARACTERISTICS THAT INFLUENCE TRAINING 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 on the extent 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 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 HRM 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 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 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) This model of organizing the training function includes, employees, managers, and stakeholders outside the company, including community colleges, universities, and high schools. Corporate universities are designed to align with the strategic initiatives of the corporation. There are several historical training problems: • Excessive costs • Poor delivery and focus • Inconsistent use of training practices • Best training practices not shared • Training not integrated or coordinated 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 The 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 involves the adoption of a new behavior or idea. 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 (structures, processes, and systems), and informal organization. Four change-related problems need to be addressed before the implementation of any new training practice. These four change-related problems 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. 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. DISCUSSION QUESTIONS 1. How would you expect the training activities of a company that is dominant in its product market to differ from those of a company that emphasizes research and development? A company that is dominant is the product market may likely adopt an “academy” model that involves developing current employees to fill new positions and managerial roles. However, a company that is more focused on research and development may likely adopt a “baseball team” model by luring employees away from competitors or by hiring graduating students with specialized skills. These companies are more apt to “buy skills” as opposed to “making them.” Furthermore, companies with a dominant market share likely focus on efficiencies; whereas research and development companies focus on innovation and creativity. 2. What do you think is the most important organizational characteristic that influences training? Why? Student answers will vary. However, while numerous organizational factors may impact the training function, top management likely plays the most significant role because top management provides the overall architecture and support for the training function. Top management may assume a variety of roles in support of training, including: • 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 3. Why could the business-embedded learning function be considered the best way to organize training? In the BE model, all persons who are involved in the training process communicate and share resources, offer a menu of learning options, and deliver training at the work site. An important characteristic of the BE model is its customer focus which gives it an edge over other models. The number of trainers in BE training functions varies according to the demand for products and services. The trainers not only have specialized competencies, but can also serve as internal consultants, providing a wide range of services (e.g., needs assessment, content improvement, customization of programs, results measurement). 4. Schering-Plough HealthCare Products decided several years ago to expand its product lines by developing pocket-size sticks and sprays of Coppertone sunblocks, previously only available as a lotion packaged in squeeze bottles. The company placed a strategic emphasis on developing markets for this product. The company knew from market research studies that its Coppertone customers were already using the product in its original squeeze container to prevent sun burn. Due to increased awareness of the dangers of excessive skin exposure, customers who had not previously used sunblock except when at the beach, were looking for a daily sunblock product. Company managers reasoned that their market could be expanded significantly if the product were repackaged to fit conveniently in consumers’ pockets, purses, and gym bags. Identify the business strategy. What training needs result from this strategy? What are the training implications of this decision for (1) manufacturing and (2) the sales force? The business strategy adopted is internal growth strategy. Companies focusing on internal growth strategy focus on modifying existing products and creating new or different products. High-quality communication of product value and conflict negotiation skills can be implemented for the sales force. According to the text, the key issues and training implications for this strategy include the following: Key issues • Creation of new jobs and tasks • Innovation • Talent management Training implications • High-quality communication of product value • Development of organizational culture that values creative thinking and analysis • Technical competence in jobs • Specialized programs In this particular context, innovation and creativity would be particularly important. 5. Which strategic training and development initiatives do you think all companies should support regardless of economic conditions? Why? Common strategic initiatives include: • Diversity 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 • Provided 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 Students answer will vary. It is important to flesh out “why” they believe specific initiatives are more important than others. Students could also consider which initiatives are more important in different industries and for different groups of employees. 6. Are any of the strategic training and development initiatives more important for small business? Explain. In one respect, small businesses may need to “diversity the learning portfolio by providing more personalized learning opportunities and encouraging more informal learning. They may also need to “expand who is trained” by providing more learning opportunities for non-managerial employees. Furthermore, they may need to “capture and share knowledge” because key knowledge may be held by only a few individuals. Knowledge may be captured and shared in the event that key employees leave the organization. 7. How can a training function support a business strategy? There are both direct and indirect links between training and business strategy and goals. Training that helps employees develop the skills needed to perform their jobs directly affects the business. Certain competencies may be particularly important in organizations (innovation, creativity, service quality), and training may be central to enhancing them. Furthermore, giving employees opportunities to learn and develop creates a positive work environment, which supports the business strategy by attracting, motivation, and retaining key talent. 8. How does the strategic value of jobs and their uniqueness influences how training and learning resources are invested? 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: Highly valued and unique employees are known as knowledge-based employees. Because knowledge-based employees possess valuable and unique skills, the company is expected to invest heavily in training and developing them, especially in developing skills specific to the company’s needs Highly valued employees who are not unique are known as job-based employees. Job-based employees are likely to receive less training than knowledge-based employees because although they create value for the firm, they are not unique. If they receive training, it would tend to focus on skills that they need to perform their jobs. Their development opportunities will be limited unless they have been identified as outstanding performers. Employees with low value and uniqueness are known as contract employees. The training for contract workers likely would be limited to ensuring that they comply with company policies and legal or industry-based licensure and certification requirements. Unique employees with low value are known as alliance/partnership employees. Because they are not full-time employees of the company but provide valued services, training for alliance/partnership employees tends to focus on encouraging them to share their knowledge and using team training and experiential exercises designed to develop their trust and relationships with job-based and knowledge-based employees. 9. What is human capital? How is human capital influencing the changing role of training from skill and knowledge acquisition to creating and sharing knowledge? Human capital includes cognitive knowledge (know what), advanced skills (know how), system understanding and creativity (know why), and self-motivated creativity (care why). Human capital may be developed through both explicit and tacit knowledge. 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. Tacit knowledge refers to personal knowledge based on individual experiences that is difficult to codify. Both types of knowledge are important, but tactic knowledge is commonly thought to be of greater strategic importance. Explicit knowledge can be taught through formal training programs, but tacit knowledge largely requires informal learning by sharing experiences with others. Informal learning requires that individuals interact with one another to share experiences, coach one another, and provide feedback. To help facilitate informal learning, companies have to provide the physical space and technology (e-mail, Web sites) to encourage employee collaboration and knowledge sharing. 10. How could SWOT analysis be used to align training activities with business strategies and goals? SWOT analysis involves an analysis of the company’s operating environment to identify opportunities and threats as well as an internal analysis of the company’s strengths and weaknesses including people, technology, and financial resources. Armed with the information from the SWOT, training could help to improve any performance deficiencies and facilitate the development of additional strategic competencies. 11. What are the training implications of the increased use of teams to manufacture products or provide services? If companies are using teams to manufacture goods and provide services, team members need training in interpersonal problem solving and team skills (like how to resolve conflicts, give feedback). Team members may also receive training in skills needed for all positions on the team (cross training), not just for the specific job they are doing. To encourage cross training, companies may adopt skill-based pay systems, which base employees’ pay rates on the number of skills they are competent in rather than what skills they are using for their current jobs. 12. How would you design a corporate university? Explain each step you would take. 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 13. What are the advantages and disadvantages of a centralized training function? Advantages – (1) ownership of training to one organization; (2) elimination of course and program variation and duplication; (3) stronger alignment with business strategy; (4) development of a common set of metrics or scorecards to measure and report rates of quality and delivery; (5) streamlined processes; (6) cost advantage in purchasing training from vendors and consultants because of the number of trainees who will be involved; and (7) integration of programs for developing leaders and managing talent with training during times of change. The most significant disadvantage is that the training function may not be in touch with the unique needs of different constituents. 14. What factors should a company consider in deciding whether to outsource its entire training function? Are the considerations different if the company wants to outsource a training program? Explain. The factors that could be considered include costs, time, quality, control, and trust of the training vendor. 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. The same considerations may apply when deciding whether to outsource a single program, but the decision to outsource in this instance is less of strategic importance. 15. What is a training “brand”? Why is it important? How does it relate to marketing the training or learning function in an organization? A brand includes the “look and feeling” of the training function that is used to ensure that training is valued by managers and employees. Marketing the training function is important to help create this “look and feel.” A number of strategies discussed in the text 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. 16. What does “change” have to do with training and learning? What four change related problems need to be addressed for a new training program to be accepted by employees? Change has relevance for training because it may help employees develop competencies relating to the forces of change. 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, or the desire to enter global markets. In addition, training may be necessary to help overcome employee resistance to change. Employees may resist change, and training may help shape more favorable employee attitudes, when designed properly. The four key change-related problems include. • 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. Solution Manual for Employee Training and Development Raymond Andrew Noe 9780078112850, 9781259539367, 9780071267786