Chapter 1 Introduction To Employee Training & Development

Objectives Discuss the competitive challenges companies face and explain how training can help companies deal with these challenges. Discuss various aspects of the instructional system design model. Describe the amount and types of training occurring in U.S. companies. Describe how much money is being spent on training in U.S. companies and how the money is used. Discuss the key roles and competencies required for training professionals Identify appropriate resources (e.g., journals, Web sites) for learning about training research and practice.

What is training ? Training is the systematic acquisition of skills, rules, concepts, or attitudes that result in improved performance in another environment.

$52 Billion Spent on Training Why? Technological Change Customer Complaints Legislation Changes in Products or Services Skill Deficiencies Performance Problems Quality or other Strategic Initiatives

Why do companies train? Develop firm-specific human capital Lack of qualified employees in external labor market “everyone else is doing it? Too costly to add new employees or downsize

How is $52 billion Spent? Training Staff Salaries ($37 B) Facilities / Overhead ($4 B) Seminars / Conferences ($3 B) Hardware ($2 B) Outside Services ($2 B) Custom Materials ($2 B) Off-the-self Materials ($2 B)

Training Facts and Figures Most commonly used method for delivering training : Video, lecture, one-on-one Organizations that provide remedial training : 22% Organizations that evaluate training: 84% 84% measure reactions, but only 43% measure results

Facts and Figures (Con’t) 50 M employees will receive some formal training from their emloyee Type of organization with highest average expenditure for training: Transportation Communications Utilities

Production employees receive most total training hours 54% of training dollars = managers and professionals

Components of Instructional Design Needs assessment Ensure employees “readiness” to learn Create a learning environment Ensure transfer of training Select training method Evaluate training