McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Chapter The Future of Training and Development

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Future Trends That Will Affect Training (1 of 2) 1. The use of new technologies for training delivery will increase 2. Demand for training for virtual work arrangements will rise 3. Emphasis on capture and storage and use of intellectual capital will increase 4. Companies will rely on learning management systems, integration with business processes, and real-time learning

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Future Trends That Will Affect Training (2 of 2) 5. Training will focus on business needs and performance 6. Training departments will develop partnerships and will outsource 7. Training and development will be viewed more from a change model perspective

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved New Technologies for Training Delivery (1 of 2) Cost of these new technologies will decrease Companies can use technology to better prepare employees to service customers and generate new business Training costs will be substantially reduced through use of new technologies

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved New Technologies for Training Delivery (2 of 2) Technologies allow trainers to build into training many of the desirable features of a learning environment Technology will allow training to be delivered to contingent, decentralized employees in a timely, effective manner

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Virtual Work Arrangements Virtual work arrangements: Work that is conducted in a remote location Employee has limited contact with peers Employee able to communicate electronically Two training challenges: Companies have to invest in training delivery methods that facilitate digital collaboration Teams and employees must be provided the tools they need for finding knowledge

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Intellectual Capital Companies will increasingly seek ways to turn employees’ knowledge (intellectual capital) into a shared company asset because of: software such as Lotus Notes and intranets growing emphasis on creating a learning organization Trainers and the training department likely will: manage knowledge coordinate organizational learning

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Learning Management Systems (LMS) (1 of 2) Used to automate the administration of online learning systems Can help companies: reduce travel costs related to training reduce time for program completion increase employees’ accessibility to training across the business provide administrative capabilities to track program completion and course enrollments

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Learning Management Systems (LMS) (2 of 2) Important for human capital management Human capital management – integrates training with the human resource function to determine: how training dollars are spent, and how that expense relates to business dollars for the company Accomplished through a software system that integrates all human resource management activities with each other

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved How should an LMS be developed? 1. Senior management needs to be convinced that an LMS will  benefit employees  improve business functions  contribute to overall business strategy and goals 2. The company must have an e-learning culture that supports online learning and encourages employee participation 3. The online learning environment needs to be under the control of the learner

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Functional Areas and Applications of Real- Time Extended Business: Resource Management  Human Capital Development  Enterprise Resource Management  Employee Resource Management  Learning Management Systems Product Management  Product Life-Cycle Management  Supply Chain Management  Work Force Management  Customer Relations Management Collaborator Management  Structured Knowledge Management  Instant Messaging  Collaborative Web-Conferencing Process Management  Work Flow Management  Customer Analytics  Work Force Analytics  Business Process Management

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Business Needs and Performance (1 of 2) Training departments will have to ensure that they are seen as helping the business functions to meet their needs Requires a shift from training as the solution to business problems to a performance analysis approach Involves identifying performance gaps or deficiencies and examining training as one possible solution for the business units (the customers)

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Business Needs and Performance (2 of 2) Two ways that training departments will need to be involved are: (1) focusing on interventions related to performance improvement (2) providing support for high-performance work systems Training departments’ responsibilities will include a greater focus on systems that employees can use for information on an as-needed basis

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Partnerships and Outsourcing (1 of 2) Companies are turning to external suppliers for their training services because: downsizing has caused reductions in training staffs employees are needing to learn specialized new knowledge demand for training services is fluctuating External suppliers can be used as partners or as sole providers of training services

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Partnerships and Outsourcing (2 of 2) Outsourcing – the reliance on external suppliers to provide training services Application service provider (ASP) – a company that rents out access to software for a specific application Major benefit is that company resources are not used to purchase or maintain an internal network or intranet

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Training and Development from a Change Model Perspective: (1 of 3) For new training or development practices to be successfully implemented, they must first be accepted by managers, upper management, and employees For managers and employees, change is not easy Resistance to new training and development practices is likely Training and development should be viewed from a change model perspective

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Training and Development from a Change Model Perspective: (2 of 3) The process of change is based on the interaction among four components of the organization: Task Employees Formal organization arrangements Informal organization Different types of change-related problems occur depending on the organizational component that is influenced by the change

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Training and Development from a Change Model Perspective: (3 of 3) Four change-related problems need to be considered for any new training practice: Resistance to change Control Power Task redefinition

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved A Change Model Components of the organization Change-related problems Resistance to Change Loss of Control Formal Organizational Arrangements Power Imbalance Task Redefinition Challenges Individual Task Informal Organization

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Methods to Determine Whether Change is Necessary Viewing training from a systems perspective means that companies and trainers need to understand both internal and external environments They need to understand the effectiveness and efficiency of current training practices They need to be aware of other companies’ practices to ensure that their training practices are the best possible

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Methods to Determine Whether Change is Necessary: Benchmarking Benchmarking provides information about other companies’ practices Trainers need to take several things into account when benchmarking: Information about internal processes must be gathered to serve as a comparison for best practices The purpose of benchmarking and the practice to be benchmarked must be clearly identified Upper-level management needs to be committed to it Quantitative and qualitative data should be collected

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Example: Xerox’s Benchmarking Practices 1. Identify what is to be benchmarked 2. Identify comparable companies 3. Determine data collection methods and collect data 4. Determine current performance levels 5. Project future performance levels 6. Communicate benchmark results and gain acceptance 7. Establish functional goals 8. Develop action plans 9. Implement action plans and monitor progress 10. Recalibrate benchmarks

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Methods to Determine Whether Change is Necessary: Process Reengineering (1 of 3) Process reengineering provides information about the effectiveness and efficiency of training systems within the company Trainers need to understand their current training practices and processes and evaluate them to determine what should be changed Reengineering is critical to ensuring that the benefits of new training and development programs can be realized

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Methods to Determine Whether Change is Necessary: Process Reengineering (2 of 3) Reengineering is important when trying to: Deliver training using new technology Streamline administrative processes and improve the services the training department offers Review the training department functions Review a specific training program or development program practice

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Methods to Determine Whether Change is Necessary: Process Reengineering (3 of 3) Reengineering involves four steps: Identify the process to be reengineered Understand the process Redesign the process Implement the new process

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Reengineering Process Identify the Process to Be Reengineered Understand the Process Feedback Redesign the Process Implement the New Process

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Organization Development and Change Management Organization Development Planned, systematic change process that uses behavioral science knowledge and techniques to improve companies’ effectiveness by improving relationships and increasing learning and problem-solving capabilities Change Management The process of ensuring that new interventions such as training practices are accepted and used by employees and managers

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Change Management Steps 1. Overcoming Resistance To Change 2. Managing The Transition 3. Shaping Political Dynamics 4. Using Training To Explain New Tasks

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Managers’ Misconceptions About Training Training is not valuable Training is an expense, not an investment Anybody can be a trainer The training department is a good place to put poor performers Training is the responsibility of the trainers

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Change Interventions Survey Feedback Process Consultation Group Interventions