1. Quiz #1 7 th October, Monday (In class) Syllabus: Chapters 1, 3 Question Format: MCQ’s, True/False, Fill-in- the-Blanks Around 20 Questions Weight: 5% © 2005 Prentice Hall Inc. All rights reserved. 5–1

2. Chapter 4: Needs Analysis Feihan Ahsan BRAC University October 2 nd ‘2013

3. Session Overview Describe the purpose of a needs analysis Explain the difference between proactive and reactive needs analysis Describe the framework for conducting a needs analysis Chapter 4 3

4. Training Needs Analysis Training Needs Analysis (TNA): “A systematic method for determining what caused employee performance to be less than expected or required” p.115 It is done to find out the reasons for poor performance, and hence, the need for training Chapter 4 4

5. Reasons for doing Training Needs Analysis A training program should always be designed after doing a training needs analysis. Why? A training needs analysis can pinpoint the causes of poor performance and hence, determine if training is actually required Sometimes, the causes of poor performance is insufficient KSA’s and therefore training is required. But other times, the causes can be environmental or personality- related, and training will not solve them (non-training solution required) Ex- lacking in machinery, tools or other physical equipment 5

6. Reasons for doing Training Needs Analysis A training needs analysis can tell you the level of KSA and performance of employees before the training program. And after the training program, you can use these values to compare performance (i.e. how much was there and how much has improved) Therefore, training needs analysis can provide a performance benchmark for outcome evaluation Using this, you can calculate how much cost the training program has saved the company (After the training program, you can show this to your supervisor) Ex- If, as a result of training, there are 50 less defects/day in a factory. What is the value of the training program? (Selling price/product = $75) Ans. 50 * Selling Price of the product = 50 * 75 = 3750 dollars 6

7. Reasons for doing Training Needs Analysis Also, as a result of training needs analysis, only those who need training will attend the training program. Compare this with a situation where training needs analysis was not done, and the manager sends everyone to the training program These people will not take the training seriously, and distract the people who actually need it By doing a training needs analysis, you are ensuring that training is given on the KSA’s which are actually lacking (and not irrelevant KSA’s). Happens a lot in firms Lastly, Training is a strategic tool. TNA finds out what KSA’s employees currently have (or lacking), and training gives them these KSA’s. All of this has the objective of achieving the firm’s long term plans (in a certain industry or market etc.) 7

8. Is Training Needs Analysis always required? There are situations in which training needs analysis might not be required. For example, for a very important issue such as “sexual harassment training”, you don’t need to do a training needs analysis because there is no doubt you need it. Everyone should receive training on avoiding sexual harassment and be aware of it, so there is no question of doing a needs analysis Secondly, for training related to general workplace skills such as improving teamwork, improving communication skills etc. there is no need to do a needs analysis because it is already clear that everyone would benefit from it For all other types of training, doing a training needs analysis is useful and will improve the quality and effectiveness of the training program 8

9. The TNA Model Chapter 4 9 Input Process Output TRIGGER Actual Organizational Performance (AOP) < Expected Organizational Performance (EOP) Identify Performance Discrepancy (PD) PD = EP- AP And Causes of PD Non Training Needs Training Needs Resources Operational Analysis Expected Performance (EP) Person Analysis Actual Performance (AP) Organizational Analysis Objectives Environment

10. The TNA Model 1. The Trigger The training needs analysis (TNA) begins with a trigger, an event that indicates that Actual Organizational Performance (AOP) < Expected Organizational Performance (EOP) Usually this trigger is reported by a high authority, or a top management figure. 2. The Input Phase The next step in the TNA model is the input phase, which consists of an organizational analysis, an operational analysis and a person analysis 1. Organizational Analysis 2. Operational Analysis 3. Person Analysis 10

11. The TNA Model 2.a Organizational Analysis An organizational analysis is a scanning of the organizations environment, such as it’s corporate culture, its mission and vision and the training and other systems currently in place to see how they are affecting employee performance Blockages or other resistances are then discovered 2.b Operational Analysis An operational analysis is an analysis of the organization’s jobs, i.e. what are the specific duties and responsibilities of the jobs and what KSA’s are required to do them. So, in other words, it is like a job description. Remember that a job description also gives the performance standards of the job and the conditions in which they are carried out 11

12. The TNA Model 2.c Person Analysis A person analysis gives information about employees, i.e. what kind of person is required to do the job and what KSA’s and other abilities they should have. So, in other words, it is like a job specification Remember a job specification also gives performance standards, but standards about the person. (for example, for a call center employee, ability to maintain relationship with 50 customers/month) Expected Performance (EP) is the level of performance required in a particular job. Actual Performance (AP) is the level of performance that actually occurs in the job Which kind of performance, EP or AP, is indicated by the Operational analysis and Person analysis phase? 12

13. The TNA Model Ans. The operational analysis gives information about the expected performance level required to do the job. The person analysis gives information about the actual performance level of employees 3. The Process Phase In the process phase, the expected performance level is compared to the actual performance level to see whether there is a performance gap. Performance Gap (PG) = Expected Performance (EP) – Actual Performance (AP) As mentioned earlier, there can be a performance gap right now, or there can be an anticipated performance gap, i.e. a performance gap in the coming future. These require different TNA approaches….. 13

14. The TNA Model 4. The Output Phase Here, the outcomes of the process phase are analyzed, i.e. how much performance gap there is, what TNA approach is required, and whether the solution is training or something other than training. Reactive TNA- Focuses on current performance problems, i.e. the performance gap exists right now Proactive TNA- Focuses on performance problems that will happen in the future, i.e. there will be a future performance gap (AOP will be < EOP) Also, in the output phase, we have to decide whether a training or a non- training solution is required. Because a performance gap can happen for a number of reasons, (lack of KSA’s is only one of the reasons). So, if the reason for the performance gap is non-KSA related, then training is not the solution and some other method has to be applied Training can only fix performance gaps which are KSA-related So, we have to look at performance gaps both quantitatively and qualitatively.. 14

15. Training Needs Analysis Training needs analysis (TNA): is conducted when a triggering event occurs determines the benchmark for evaluation of training. provides an essential component in the implementation of the strategic plan Chapter 4 15

16. Approaches to TNA Two Approaches to Analysis: 1. Proactive TNA – focuses on anticipated performance problem 2. Reactive TNA – focuses on a perceived performance problem (discrepancy) Chapter 4 16

17. Model of Process When Performance Discrepancy Is Identified – (1 of 2) Chapter 4 17 YES Is it worth fixing? Performance Discrepancy YES KSA Deficiency Reward/ Punishment Incongruence Inadequate Feedback Obstacles in the System Choose Appropriate Solution YES Change System YES Provide Proper Feedback YES Remove Obstacles YES

18. Model of Process When Performance Discrepancy Is Identified – (2 of 2) Chapter 4 18 Job Aid (Instructions, guidance etc) Training (new skills, KSA) Practice (repetition) Change Job Context- temporary (job rotation etc) Transfer or Terminate- permanent Performance discrepancy is worth fixing AND is due to a KSA deficiency Choose Appropriate Solution Change System Provide Proper Feedback Remove Obstacles

19. Data Sources for Locating Performance Discrepancies (1 of 3) Chapter 4 19 Organizational Goals, Objectives and Budget Where training emphasis can and should be placed. To maintain a quality standard of no more than 1 reject per thousand Goal is to become ISO certified and 90,000 dollars has been allocated to this effort Data Source Recommended Training Need Implications Example Labor InventoryWhere training is needed to fill gaps caused by retirement, turnover, age, etc. Thirty percent of our truck drivers will retire over the next four years

20. Data Sources for Locating Performance Discrepancies (2 of 3) Chapter 4 20 Organizational Climate Indices These may help focus on problems that have training components Data Source Recommended Training Need Implications Example  GrievancesItems related to productivity are useful in determining performance deficiencies Seventy percent of grievances are related to behaviors of 6 supervisors  AbsenteeismHigh absences in clerical staff  AccidentsAccident rate for line workers increasing

21. Data Sources for Locating Performance Discrepancies (3 of 3) Chapter 4 21 Analysis of Efficiency Indices  Cost of labor Can help document difference between actual performance and desired performance Labor costs have increased 8 percent in the last year Data Source Recommended Training Need Implications Example Changes in System or Subsystem New or changed equipment may present training problem The line has been shut down about once per day since the new machinery was installed. Waste has doubled since using the new cutting tool

22. Framework for Conducting a TNA Organizational Analysis Examining the internal environment of the organization and determining its fit with organizational goals and objectives Job Analysis (Task Analysis) Examine jobs to determine the required KSAs necessary to get the job done Person Analysis Examine employees to see whether they possess the required KSAs necessary to do the job. Chapter 4 22

23. Organizational Analysis An organizational analysis should collect data about: The mission and strategies of an organization The resources and allocation of the resources, given the objectives The factors in the internal environment that may be causing the problem Chapter 4 23

24. Organizational Analysis: What Do You Ask and Of Who (1 of 3) Chapter 4 24 What to Ask AboutWho to Ask Mission Goals and Objectives What are the goals and objectives of the organization How much money has been allocated to any new initiatives Is there general understanding of these objectives Top management Relevant department managers, supervisors and incumbents Social Influences What is the general feeling in the organization regarding meeting goals and objectives What is the social pressure in your department regarding these goals and objectives productivity Top management Relevant department managers, supervisors and incumbents

25. Organizational Analysis: What Do You Ask and Of Who (2 of 3) Chapter 4 25 What to Ask About Who to Ask Job Design How are the jobs organized? Where does their work/material/ information come from, where does it go when done? Does the design of the job inhibit workers from being high performers? Relevant supervisors and incumbents, perhaps relevant department managers Reward Systems What are the rewards and how are they distributed? Are there incentives, are they tied to the goals and objectives? What specifically do high performers get as rewards? Top management Relevant department managers, supervisors and incumbents

26. Organizational Analysis: What Do You Ask and Of Who (3 of 3) Chapter 4 26 What to Ask About Who to Ask Job Performance How do employees know what level of performance is acceptable? How do they find out if their level of performance is acceptable? Is there a formal feedback process? Are there opportunities for help if required? Methods and Practices What are the policies/ procedures/rules in the organization. Which if any inhibit performance Relevant department managers supervisors and incumbents Relevant supervisors and incumbents

27. Job Analysis An operational analysis should collect data to: Determine what KSAs are required by employees in order to meet the expected performance Determine the characteristics of the task environment (workflow, equipment, ergonomic concerns, etc…) Chapter 4 27

28. Job Analysis Two approaches to Job Analysis: Worker-Oriented Approach Focuses on the KSAs that are required on the job Task-Oriented Approach Focuses on the work activities (tasks) required to perform the job Chapter 4 28

29. Job Analysis: A Comparison of the Worker- and Task-Oriented Approaches Chapter 4 29 JobTask-Oriented Worker-Oriented Approach Approach ______________________________________________________________ Garage attendantChecks tire Pressure Obtains information from visual displays MachinistChecks thickness of Use of a measuring crankshaft device DentistDrills out decay from Use of precision teethinstruments Forklift DriverLoads pallets of High level of eye-hand washers onto truckscoordination

30. Job Analysis: Data Sources (1 of 3) Chapter 4 30 1. Job DescriptionsOutlines the job’s typical duties and responsibilities but is them not meant to be all inclusive Often inaccurate due to time constraints or job knowledge. Sources for Obtaining Job Data Training Need ImplicationsPractical Concerns 2. Job SpecificationsList specified tasks required for each job. May be product of the job description and suffer from the same problems 3. Performance Standards Objectives of the tasks of job, and standards by which they are judged. Very useful if available, and accurate, but often organizations do not have formal performance standards

31. Job Analysis: Data Sources (2 of 3) Chapter 4 31 4. Perform the JobMost effective way of determining specific tasks, but has serious limitations in higher level jobs Easy, short cycle type jobs are a possibility. Sources for Obtaining Job Data Training Need ImplicationsPractical Concerns 5. Observe Job—Work Sampling Most effective way of determining specific tasks, but has serious limitations in higher level jobs Useful again for very short cycle jobs. Be aware of the impact of being observed can influence behavior

32. Job Analysis: Data Sources (3 of 3) Chapter 4 32 6. Questions directed to the job holder and the supervisor. Most often used method the job holder and his supervisor have different perspectives and information Sources for Obtaining Job Data Training Need ImplicationsPractical Concerns 7. Review Literature concerning job in professional journals practitioner journals other industries Useful for determining specific issues related to the job and what is being done by others and what the results are Need to be sure information is relevant to your organization

33. Personal Analysis Person Analysis Examine employees to see whether they possess the required KSAs necessary to do the job. Expected Performance – Actual Performance = Performance Discrepancy Chapter 4 33

34. Person Analysis: Data Sources (1 of 5) Chapter 4 34 Performance Data or Appraisals Easy to analyze and quantify for purposes of determining subjects and kind of training needed. Supervisor ratings are often done poorly as there is no real incentive to do them well, and a lot of good reasons not to Data Sources for Obtaining Data Training Need Implication Remarks Observation – Work Sampling More subjective technique. Done effectively in some situations like customer service where you can monitor behavior InterviewsOnly individual knows what he believes he (she) needs to learn. Be sure employee believes it is in his best interest to be honest

35. Person Analysis: Data Sources (2 of 5) Chapter 4 35 Tests a. Job knowledge b. Skills c. Achievement Can be tailor-made or standardized. Care must be taken so that they measure job related qualities. Care in the development of scoring keys is important and difficult to do if not trained in the process Data Sources for Obtaining Data Training Need Implication Remarks Attitude SurveysOn an individual basis, useful in determining morale, motivation, or satisfaction of each employee. Important to use well developed scales QuestionnairesSame approach as the interview. Same concerns as the interview

36. Person Analysis: Data Sources (3 of 5) Chapter 4 36 Rating ScalesCare must be taken to ensure objective employee ratings. Rely on supervisor ratings, see “Performance data or Appraisals” Data Sources for Obtaining Data Training Need Implication Remarks Critical IncidentsObserve actions critical to successful and unsuccessful performance. Rely on supervisor ratings, see “Performance data or Appraisals” Checklists or Training Progress charts Up-to-date listing of each employee’s skills. Rely on supervisor ratings, see “Performance data or Appraisals”

37. Person Analysis: Data Sources (4 of 5) Chapter 4 37 Assessment CentersCombination of several of the above techniques. Although expensive to develop and operate, these are very good Data Sources for Obtaining Data Training Need Implication Remarks Devised SituationsCertain knowledge, skills, and of attitudes are demonstrated in these techniques. Useful, but again, care in development of scoring criteria is important DiariesThe individual employee records details of his (her) job.

38. Person Analysis: Data Sources (5 of 5) Chapter 4 38 Data Sources for Obtaining Data Training Need Implication Remarks MBO or Work Planning Provides actual performance data on a recurring basis related to organizational and group or individually negotiated standards. Good process when implemented properly, and Review Systems are the support of top management CoachingSimilar to interview – one-to-one. Must choose coaches carefully and train to be most effective