1. Paul L. Schumann, Ph.D. Professor of Management MGMT 440: Human Resource Management 1© 2008 by Paul L. Schumann. All rights reserved.

2. Outline Training & Development Training Cycle Step 1: Needs Analysis (Needs Assessment) Step 2: Design & Develop Training Program Step 3: Deliver the Training Step 4: Training Evaluation 2

3. Training & Development What is training? What is development? Training: enhances the capabilities of an employee to perform his or her current job Focuses on the current job Examples for a bank teller: Training program to correctly identify counterfeit currency Training program in the bank’s new computer system used by tellers to process customer’s transactions 3

4. Training & Development Development: enhances the capabilities of an employee to be ready to perform possible future jobs Focuses on future jobs Developmental education programs Examples for a bank teller: Bank sends the teller to a day-long workshop on “Emerging Issues in Finance & Banking” Bank pays for the employee to get his or her MBA degree Developmental job experiences Examples: job rotation or job enlargement Developmental interpersonal relationships Example: mentoring 4

5. Training Cycle Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 5

6. Step 1: Needs Analysis/Assessment Goal of needs analysis: Identify training needs Summary of Needs Analysis: 3 Levels of Needs Analysis: Organizational analysis Job and task analysis Individual analysis Training Objectives 6

7. Needs Analysis 3 Levels of Needs Analysis: Organizational analysis: What are the training needs of the organization? What training will support the organization’s strategy? Example: Internal growth strategy (growth from new products or new markets) would be supported by training in: Creative thinking New product development Understanding & evaluating potential new markets Technical competence in jobs Example: What are the training needs for other strategies? Low-cost leadership, focused (niche) concentration, external growth (mergers & acquisitions), downsizing & divesting 7

8. Needs Analysis 3 Levels of Needs Analysis (more): Organizational analysis (more) What training will support the organization’s culture, goals, & priorities? Some organization’s emphasize training more than others Learning organization: use training linked to strategic goals as a source of competitive advantage Features: Learning culture, valuing employees, flexibility & experimentation, continuous learning, critical thinking, knowledge generation & sharing What’s your training budget? 8

9. Needs Analysis 3 Levels of Needs Analysis (more): Organizational analysis (more) Use benchmarks of organizational health & success to identify training needs General examples: Headcount Productivity Costs Quality Specific examples for an airline: On-time rates Lost baggage rates Employee injury rates 9

10. Needs Analysis 3 Levels of Needs Analysis (more): Job and task analysis: What are the training needs of each job in the organization? Examine the job descriptions: What tasks & duties are performed by each job? For each task: Do new hires already know how to perform the task or will they have to be trained? (Helps to identify training needs) What are the consequences of performing the task incorrectly? (Helps to set training priorities) Can the task be learned on the job, or should it be taught off the job? (Helps to identify training methods) 10

11. Needs Analysis 3 Levels of Needs Analysis (more): Individual analysis: What are the training needs of each individual employee in the organization? Examine each employee’s performance appraisal Do certain employees, or groups of employees, have job performance that might be improved by training that is cost- effective? 11

12. Needs Analysis Training Objectives: Use the 3 levels of needs analysis to establish the training objectives for the training program Training objectives answer the question: What will employees be able to do as a consequence of the training? Make the training objectives specific, concrete, & measurable Example for a bank teller training program in detecting counterfeit currency: Identify counterfeit currency correctly 100% of the time Example for a bartender training program on underage consumption: Check customer’s age, refuse service, and report attempts at underage consumption correctly 100% of the time 12

13. Training Cycle Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 13

14. Step 2: Design & Develop Training Program 3 Stages of Learning: Design the training program to move employees up to Stage 3 Stage 1: Declarative knowledge (cognitive phase) Learn facts & concepts High demands on memory & attention Performance is slow & halting Errors are common Stage 2: Knowledge compilation (associative phase) Facts & behaviors get “chunked” into a routine Performance begins to improve Reduced concentration is required 14

15. Design & Develop Training Program 3 Stages of Learning (more): Stage 3: Procedural knowledge (autonomous phase) Performance becomes automatic Performance is fluid & correct Little conscious concentration is required But if we want to design our training program to move the trainees up to Stage 3, how do we do that? The answer involves putting together the following concepts 15

16. Design & Develop Training Program Preconditions for learning: Design the training program to satisfy 2 key preconditions: Trainee readiness: What do the trainees already know? We want to start the training program at the right level We need to find out what they already know Example: Does our newly hired bank teller know how to count money? Design the training program to build on what the trainees already know 16

17. Design & Develop Training Program Preconditions for learning (more): Trainee motivation: Are the trainees motivated to learn? Involve employees in the needs analysis Show trainees how the training will enhance their job performance & their careers Use goal setting: Establish specific, concrete, & measurable training goals Make the goals difficult but achievable Set intermediate & end goals Build strong self-efficacy expectations: beliefs about success Persuasion: “You can do it!” Modeling: show trainees successful previous trainees Enactive mastery: lead trainees to early success in training 17

18. Design & Develop Training Program Practice: “practice makes perfect” One critical key to moving to Stage 3 of learning is providing the trainees with the right kinds of practice Take into consideration the task complexity: Simple task: practice the entire task Complex task: Break the complex task into simple pieces Practice each of the simple pieces As performance improves, combine the simple pieces and practice the entire complex task Distributed practice sessions work better than a massed practice session: spread the practice sessions out over multiple days with sleep between the practice sessions Overlearning is good: keep practicing well beyond the point of correct performance of the task 18

19. Design & Develop Training Program Knowledge of results: feedback is important Provide lots of feedback & encouragement, especially early in training Helps build self-efficacy expectations Guide the trainee to correct performance As performance improves, raise the performance level required for positive feedback Encourage the trainee to strive for better performance Show trainees how to evaluate their own performance Allows trainees to determine for themselves how they’re doing Gradually shift from trainer-provided feedback to the trainee’s own self-generated feedback Prepares the trainee to correctly use the training on the job without the close supervision of the trainers in the training program 19

20. Design & Develop Training Program Overcome interferences: identify& resolve things that might interfere with learning Distractions in the training environment Lighting problems Noise problems Temperature problems, etc. Bad habits that the trainees bring with them into training Identify the bad habits of the trainees early in training Correct the bad habits early in training so that the trainees practice the correct way, and not the wrong way 20

21. Design & Develop Training Program Transfer of training: structure the training program to enhance the transfer of training from the training program back to the job Make the training setting similar to the work setting Use the same equipment & processes in training that are used on the job Teach both tasks & principles Both how to do the task and why it is done that way Overlearning is good: provide lots of practice Use a variety of job-relevant examples 21

22. Design & Develop Training Program Transfer of training (more): Show the trainees the relevancy of the training to their jobs Build positive self-efficacy expectations Ask trainees to develop their own action plan with goals for how they will use the training on their jobs Relapse prevention: ask trainees to anticipate what might cause them to relapse to their bad habits, and to develop their own plans to avoid the relapse 22

23. Design & Develop Training Program Transfer of training (more): Provide pre-planned opportunities for trainees to use their new skills on their jobs Supervisors and co-workers should support the new behaviors back on the job Train a team together as a team Give homework assignments that require trainees to apply what they are learning in training to their jobs Provide reminders (job aids) for trainees to take back with them to their jobs 23

24. Design & Develop Training Program Training Methods: decide which training method to use On-the-job training (OJT): training is at the actual work site using the actual work equipment Advantages: Enhances the transfer of training: the training setting and the work setting are the same May reduce costs: avoid the cost of a separate training facility Enhances trainee motivation: job-relevancy of training is more obvious to the trainees Disadvantages: May be disruptive to normal operations May have more distractions that interfere with learning May have safety concerns 24

25. Design & Develop Training Program Training Methods (more): Off-the-job training: training takes place off the job at a training facility designed for training Advantages: Avoids disruptions to normal operations Minimizes distractions Avoids safety concerns Disadvantages: Transfer of training may be more difficult due to differences between the training setting and the work setting Costs may be higher due to the cost of the training facility Trainee motivation may be reduced because the job-relevancy of the training is not as obvious 25

26. Design & Develop Training Program Training Methods (more): Off-the-job training (more): Off-the-job training techniques: Lectures Discussions Cases Role-plays Simulations Example: How should we set up a training program for newly hired bank tellers to teach them how to do their job? On-the-job or off-the-job? 26

27. Training Cycle Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 27

28. Step 3: Deliver the Training Deliver the training that was planned 28

29. Training Cycle Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 29

30. Step 4: Training Evaluation 4 Levels of Evaluation (Kirkpatrick, 1983) Level 1: Reaction: measure the satisfaction of the trainees with the training program Satisfaction questionnaire Level 2: Learning: measure how much the trainees have learned Written tests Performance tests Simulation tests Source of figure: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.4, p. 405 30

31. Step 4: Training Evaluation 4 Levels of Evaluation (more) Level 3: Behavior: measure the trainees’ job performance back on their jobs Performance appraisals Level 4: Results: measure the impact on the organization Profits Costs Productivity Quality Injury rates, etc. Source of figure: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.4, p. 405 31

32. Training Evaluation Evaluation designs: when do you collect data on reactions, learning, behavior, and results? One-shot posttest-only design: measure when training is finished: TRAIN → MEASURE Makes sense for Level 1 (Reaction) Ask the trainees to complete the satisfaction questionnaire at the end of the training program But it’s a poor design for the other levels of evaluation There’s no comparison group We wouldn’t know if learning, behavior, and results have changed for the better because of the training program 32

33. Training Evaluation Evaluation designs (more): One-group pretest-posttest design: measure both before and after training: MEASURE → TRAIN → MEASURE Compute the change in the measures: Learning: Did the percentage correct on the test go up? Behavior: Did the employee’s job performance improve? Results: Did the company improve (profits, costs, etc.)? Weakness: We’re not sure if the training is the only thing that might have caused the measures to improve There might be other things that happened at the same time as the training that also affects employee behavior (job performance) and corporate results (profits, etc.) 33

34. Training Evaluation Evaluation designs (more): Pretest-posttest control-group design: compare the changes in a control group to the changes in the training group Control:MEASURE → NO TRAIN → MEASURE Training:MEASURE → TRAIN → MEASURE Randomly divide employees into 2 groups: Control group: does not get training Training group: does get training Measure learning, behavior, & results in both groups before and after training is provided to the training group Compute the changes in the measures for both groups Did the training group improve more than the control group? Learning (test scores), behavior (job performance), & results (profits, costs, etc.) This is the strongest evaluation design 34

35. Training Evaluation Example: Sales training program to help our salespeople increase sales Training Group: randomly select some of the salespeople to be in the training program Control Group: the other salespeople are in the control group that doesn’t receive training (at least initially) Level 1 Evaluation: Reaction One-shot posttest-only design: administer in the training group at the end of the training a questionnaire that measures the satisfaction of the trainees with the training program 35

36. Training Evaluation Example: Sales training (more) Level 2 Evaluation: Learning Pretest-posttest control-group design: Control:MEASURE → NO TRAIN → MEASURE Training:MEASURE → TRAIN → MEASURE Develop a test that measures the extent to which individuals have achieved the learning objectives of the training program Before providing the training to the training group, administer the test to both the control and the training groups After training the training group, administer the test to both the control and the training groups Compare the average change in the test scores in the control group to the average change in the test scores in the training group 36

37. Training Evaluation Example: Sales training (more) Level 3 Evaluation: Behavior Pretest-posttest control-group design: Control:MEASURE → NO TRAIN → MEASURE Training:MEASURE → TRAIN → MEASURE Use the organization’s performance appraisal system to measure the job performance of the salespeople Example: amount of sales, customer satisfaction ratings, etc. Before providing the training to the training group, measure the job performance of each salesperson in both the control and the training groups After training the training group, measure the job performance of each salesperson in both the control and the training groups Compare the average change in the job performances in the control group to the average change in the job performances in the training group 37

38. Training Evaluation Example: Sales training (more) Level 4 Evaluation: Results One-group pretest-posttest design: MEASURE → TRAIN → MEASURE Measure organizational results before training the training group Measure organizational results after training the training group Compute the change in organizational results Organizational results could include anything that the training might affect: profits, costs, productivity, injury rates, quality, employee morale, etc. Pretest-posttest control-group design might be possible if the organization has multiple business units Select some of the business units to be the training group that receives training initially 38

39. Training Cycle Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 39

40. Outline Training & Development Training Cycle Step 1: Needs Analysis (Needs Assessment) Step 2: Design & Develop Training Program Step 3: Deliver the Training Step 4: Training Evaluation 40