1. MGT 301 Section 3 Schedule Quiz #2……………..26 th November’ Tuesday (Ch- 7, 8) Quiz #3……………..5 th December’ Thursday [Make-up Class] [Syllabus to be confirmed] Presentation Day 1………………1 st December’ Sunday [Group 1, 3, 5, 7] Presentation Day 2………………3 rd December’ Tuesday [Group 2, 4, 6, 8] Final Report Submission Deadline..…….8 th December’ Sunday [2 nd last class]

2. MGT 301 Chapter 8: Training and Development FEIHAN AHSAN BRAC University Sep 21, 2013

3. Class Outline 1. What is Training? 2. Important Concepts and Meanings 3. Training as an Open System 4. The Training Development Process 5. Opportunities and Challenges for Training

4. What is Training? Training is a process that provides employees with the knowledge and skills to perform their jobs more effectively Done for 2 reasons:- – To make employees meet current job requirements (reactive training) – To prepare them for future job requirements (proactive training) Training methods include Lectures and Demonstrations Case Studies and Role-playing On-the job and Off-the-job training Coaching and Mentoring Apprenticeship

5. What is Training?( Contd.) Training does not always lead to Learning Learning depends upon – The Design and Implementation of Training, whether it is good or bad – The Motivation and Learning ability of the Trainees – The Learning climate of the Organization, i.e. whether it encourages or discourages learning and the facilitation of training Training is also a strategic tool for a firm to gain a competitive advantage Ex- 50 employees have to be trained in using the new software, so that they will make on average 30 less mistakes per day, increasing productivity by 15%, leading to a 5% increase in market share over the next five years.

6. Important Concepts & Meanings  Some Key concepts related to Training & Development:-  1. Learning Refers to a relatively permanent change in cognition (understanding & thinking) resulting from experiences obtained and that is directly observable in behaviour  2. KSA : (Knowledge, Skills, Attitudes) K- Knowledge, an organized body of facts, principles, procedures and information acquired over time S- Skills, a proficiency at doing something; the capacities needed to perform a set of tasks that are acquired through training and experience Two types of skill acquisition Compilation (lower level) Automaticity (higher level) In the beginning, all skills gained are in the compilation stage, then through practice and repetition, they become skills in the automaticity stage. Ex- Playing Tennis. Beginners learn to play a ball on the forehand or backhand depending on the ball bounce (Compilation stage) As you become good at it, the adjustments become automatic and you no longer have to think about it (Automaticity stage)

7. Important Concepts & Meanings (Contd.) A- Attitudes are employee beliefs and opinions that influence their behaviour For example, if an employee likes his boss, he will most probably like the job too, regardless of the activities involved. Whereas, if an employee hates his boss, he will most probably hate the job too, even if it is a comparatively good job. (low pressure, fewer hours etc.) All because of attitude Training needs to create positive attitudes among employees, because when they have positive attitudes, they are more motivated, and learn quickly (training is faster)

8. Important Concepts & Meanings (Contd.)  3. Competencies: Are a set of KSA’s that are required to do a job successfully. For example, to be a carpenter you need: Knowledge- knowledge about different wood types, tools and their uses; types of finishings that can be applied to wood Skills- skills such as cutting, shaping, joining, finishing etc. Attitude- love for working with wood, making things out of wood, designing wood etc. Trainers need to know how to spot competencies in employees and develop the ones that are lacking. Thus, training can improve both knowledge, skills and attitudes in employees.

9. Training is an Open System An open system is a system which interacts with it’s environment. A closed system does not interact with it’s environment Training is an open system because it receives new inputs each time from the environment The Training System:-  Inputs- Inefficiency, slow work, poor attitude, lack of knowledge  Process- Delivery of training using different methods such as coaching, mentoring etc.  Outputs- Increased Knowledge, Higher skills, Better attitude, Improved Job Performance

10. The Training Development Process Expected Organizational Performance (EOP) is the targeted performance that the firm aims to achieve Actual Organizational Performance (AOP) is the performance that actually occurs The need for training arises when AOP<EOP When this happens, it is called a triggering event Example- If expected sales figures for a certain month are 30,000 units and actual sales are in fact 25,000 units, there is a performance gap. This is a triggering event and gives cause for training. Perhaps the salesman were poorly trained in selling or did not know how to persuade customers to buy. Therefore, the solution is improved sales training for the marketing staff.

11. The Training Development Process (Contd.) The Training process is developed in 5 stages:- – 1. Analysis Phase Here, expected organizational performance is compared to actual organizational performance to find performance gaps. There can be two types of performance gaps: Current Performance Gap- something which is a problem right now and needs to be fixed. Ex- Low sales in February Future Performance Gap- something which will become a problem in the future and needs to be addressed. Ex- Installation of new machinery next year. Employees have to be trained to use it, otherwise work will be stopped.

12. Training Needs Analysis Training Needs Analysis (TNA): “A systematic method for determining what caused 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 12

13. 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 13

14. 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 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 = $75) Ans. 50 * Selling Price of the product = 50 * 75 = 3750 dollars 14

15. 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) Lastly, Training is a strategic tool. TNA finds out what KSA’s employees currently have, 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.) 15

16. 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”, 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 16

17. Outputs of Training Needs Analysis (TNA) Here, the outcomes of TNA 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. 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….. 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. So, training can only fix performance gaps which are KSA-related 17

18. The Training Development Process (Contd.) – 2. Design Phase Uses inputs from the analysis phase. Here, a training program is designed to fill the needs identified in the analysis phase. Also the best method of delivery. All methods will not work for everyone. For example, if a person has a disability (such as hard of hearing, or uses a wheelchair) then special accommodation has to made. These are all decisions of the design phase Another important output from the design phase is training objectives- what should be trained and how.

19. The Training Development Process (Contd.) – 3. Development Phase Here, the actual training materials (manuals, lectures, demonstrations, handouts etc.) are made. Inputs in this stage are the outputs of the design stage, i.e. instructional methods and ways of delivery. An instructional strategy is formed, consisting of the order, timing and combination of methods and elements to be used in the training program. – Outputs in this stage are the hard-copy training materials to be used in the next phase

20. The Training Development Process (Contd.) – 4. Implementation Phase Here, the training program is run in real life. All of the design, analysis and development is put into practice to see how the training program performs in an organizational context.  However, there can be errors in the design and implementation  To ensure this, a dry run (or test) of the training program is conducted before the full one is launched

21. The Training Development Process (Contd.) – 5. Evaluation Phase Here, the training program is evaluated to see whether it has actually helped the organization achieve its improvement objectives. Two kinds of evaluation:- 1. Process Evaluation- evaluation of the training process itself, i.e. whether the training followed the curriculum originally set out. Ex- whether a teacher followed the course outline throughout the course

22. The Training Development Process (Contd.) 2. Outcome Evaluation Whether the training resulted in any real benefits or improvements for the firm. Here, the results of training are compared with the original objectives of the training program to see whether there are any improvements in performance. If yes, the training program is a success. If no, then it is not worth it. Also, organizational constraints affect training. Even if a training program is successful, it might not be feasible if it involves a lot of time, is very expensive, or requires extreme involvement from the employees. All these might not be possible in a tight, competitive business environment.

23. Thank You!