TRAINING AND DEVELOPMENT

Training & Development Training is the process of teaching the employees the skills and knowledge they need to do the job.

Importance of training & development Rapid technological changes cause skill obsolescence Redesign of work brings need for new skills Mergers & acquisitions have increased need for integrating employees into different cultures Employees are moving between employers more often, necessitating training Globalization of business requires new knowledge & skills Where an employers fail to train and employee does harm to third parties, the court will find the employer liable Developing and transferring health and safety procedurse

The Training Process Training The strategic context of training - The process of teaching new or current employees the basic skills they need to perform their jobs. The strategic context of training - Aligning strategy and training Training program should support firm’s strategic goals Caterpillar Inc. established Caterpillar University that aligns corporation’s business strategy with developmental needs

Training Process (cont.) Consisted of 4 steps: 1. Need analysis 2. Design 3. Implement the program 4. Evaluate the training session

Need Analysis: Existing Employees Performance Analysis A process of determining whether there is a performance deficiency

Performance Analysis (cont.) 3 crucial elements 1. Identify the job standard of the job holder (e.g. To make 10 new contracts per week) 2. Compare standard with current performance - Performance Appraisal - Job-related performance data (productivity, absenteeism, waste, late deliveries, product quality, and customer complaints) - Observations by the supervisors - Conduct interviews with the candidates

Performance Analysis (cont.) 3. Cant’ do/ won’t do Can’t do: employees don’t know what to do and how to do or employees don’t have the skills Example- To make 6 new contracts per week Won’t do: Employees are reluctant to do the job Can’t do problems needs training right away What are you going to do with won’t do?

Need Analysis: New Employees Task analysis: A detail analysis of the job Job description and job specification should be scrutinized

Design Critical training design issues Interference from & difficulty of overcoming prior training, learning, habits Transfer of newly learned skills back to job Training objective - What is the actual need? - Example: To make 10 contracts per week Sort the training budget out - Direct and indirect cost Deciding on the actual content - Online and offline content

Computer-Based Instruction Benefits Self-paced Adaptive to different needs Can be customized Easy to deliver Usually less expensive to administer Can be conducted when convenient for employee Drawbacks Learners must be self-motivated Cost of producing online, interactive materials Lack of interaction with others may work against needs & preferred learning styles

Delivery or Implementation On-the-job training Internship/ Apprenticeship Coaching and mentoring Job rotation Informal learning Off-the-job training Lectures Audiovisual-based training Case study Seminar Simulated learning Corporate universities

Evaluation Integral part of overall training program Provides feedback on effectiveness of training program Evaluation criteria should be established in tandem with & parallel to training objectives

Evaluating the Training Effort Designing the evaluation study Time series design Controlled experimentation

Time Series Training Evaluation Design

Controlled Experimentations A training group and a controlled group that receives no training Data (e.g. quality of service and quantity of sales) for both groups is collected before the group is exposed to training The training group then receives the training while controlled group receives no training This makes it possible to determine the extent to which any change in the training group’s performance

Training Effects to Measure Reaction- Evaluate reactions to the program. Did they like the program? Learning- Test the trainees to determine if they have learned the principles Behavior- Determine whether trainees’ behavior on the job has been changed due to training Results- Most important element. Have you achieved the actual goal of training? Can the employee produce 10 contracts per week?

Exhibit 9-3 Four Levels of Training Evaluation

“Recently, I was asked if I was going to fire an employee who made a mistake that cost the company $600,000. No, I replied, I just spent $600,000 training him. Why would I want somebody to hire his experience?”– Thomas John Watson Sr., IBM “Human Resources isn’t a thing we do. It’s the thing that runs our business.”– Steve Wynn

Thank you!