1. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 1 1 Chapter Introduction to Employee Training and Development

2. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 2 Introduction (2 of 3) Although they are in different types of businesses, they each have training practices that have helped them gain a competitive advantage in their markets Issues affecting companies and influencing training practices: customer service employee retention and growth doing more with less quality and productivity

3. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 3 Human Resource Management Refers to the policies, practices, and systems that influence employees’: behavior attitudes performance HRM practices play a key role in attracting, motivating, rewarding, and retaining employees

4. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 4 What is training? Training – refers to a planned effort by a company to facilitate employees’ learning of job- related competencies The goal of training is for employees to: master the knowledge, skill, and behaviors emphasized in training programs, and apply them to their day-to-day activities

5. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 5 High-Leverage Training Linked to strategic goals and objectives Uses an instructional design process to ensure that training is effective Compares or benchmarks the company’s training programs against training programs in other companies Creates working conditions that encourage continuous learning

6. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 6 Continuous Learning (1 of 2) Continuous Learning – requires employees to understand the entire work system including the relationships among: their jobs their work units the entire company

7. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 7 Continuous Learning (2 of 2) Employees are expected to: acquire new skills and knowledge apply them on the job share this information with other employees Managers take an active role: in identifying training needs helping to ensure that employees use training in their work

8. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 8 Training and Performance Emphasis on high-leverage training has been accompanied by a movement to link training to performance improvement Training is used to improve employee performance This leads to improved business results

9. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 9 Training and Performance: Today’s Emphasis (1 of 2) Providing educational opportunities for all employees An on-going process of performance improvement that is directly measurable not one-time training events The need to demonstrate the benefits of training to executives, managers, and trainees

10. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 10 Training and Performance: Today’s Emphasis (2 of 2) Learning as a lifelong event senior management, training managers, and employees have ownership Training used to help attain strategic business objectives helps companies gain a competitive advantage

11. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 11 Training Design Process Conducting Needs Assessment Ensuring Employees’ Readiness for Training Creating a Learning Environment Ensuring Transfer of Training Developing an Evaluation Plan Select Training Method Monitoring and Evaluating the Program

12. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 12 Instructional System Design (ISD) Refers to a process for designing and developing training programs There is not one universally accepted ISD model ISD process should be: systematic flexible enough to adapt to business needs

13. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 13 Assumptions of ISD Approaches (1 of 2) Training design is effective only if it helps employees reach instructional or training goals and objectives Measurable learning objectives should be identified before training

14. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 14 Assumptions of ISD Approaches (2 of 2) Evaluation plays an important part in: planning and choosing a training method monitoring the training program suggesting changes to the training design process

15. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 15 Forces Influencing the Workplace and Training: (1 of 2) Globalization Need for leadership Increased value placed on knowledge Attracting and retaining talent Customer service and quality emphasis

16. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 16 Forces Influencing the Workplace and Training: (2 of 2) Changing demographics and diversity of the work force New technology High-performance models of work systems Economic changes

17. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 17 Core Values of Total Quality Management (TQM) (1 of 2) Methods and processes are designed to meet the needs of internal and external customers Every employee in the company receives training in quality Quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected

18. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 18 Core Values of TQM (2 of 2) The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs Managers measure progress with feedback based on data

19. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 19 Categories and Point Values for the Malcolm Baldrige National Quality Award Examination Leadership 120 points Measurement Analysis and Knowledge Management 90 points Strategic Planning 85 points Human Resource Focus 85 points Process Management 85 points Business Results 450 points Customer and Market Focus 85 points Total Points 1,000 points

20. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 20 Skills Needed to Manage a Diverse Work Force: (1 of 2) Communicating effectively with employees from a wide variety of backgrounds Coaching, training and developing employees of different ages, educational backgrounds, ethnicities, physical abilities, and races

21. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 21 Skills Needed to Manage a Diverse Work Force: (2 of 2) Providing performance feedback that is free of values and stereotypes based on gender, ethnicity, or physical handicap Creating a work environment that allows employees of all backgrounds to be creative and innovative

22. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 22 4. Creativity argument 5. Problem- solving argument 6. System flexibility argument 2. Resource- acquisition argument 3. Marketing argument 1. Cost argument How Managing Cultural Diversity Can Provide Competitive Advantage

23. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 23 Use of new technology and work design needs to be supported by specific HRM practices: (1 of 2) Employees choose or select new employees or team members Employees receive formal performance feedback and are involved in the performance improvement process Ongoing training is emphasized and rewarded Rewards and compensation are linked to company performance

24. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 24 Use of new technology and work design needs to be supported by specific HRM practices: (2 of 2) Equipment and work processes encourage maximum flexibility and interaction between employees Employees participate in planning changes in equipment, layout, and work methods Employees understand how their jobs contribute to the finished product or service

25. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 25 Comparison of Training Investment Leaders and Benchmark Companies (1 of 2) Benchmark Company Investment Leader Percent of eligible employees being trained78%91% Amount of training received per employee24 hours57 hours Amount spent on training: Percentage of payroll Per employee 2% $734 4% $1,647

26. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 26 Comparison of Training Investment Leaders and Benchmark Companies (2 of 2) Benchmark Company Investment Leader Average total spent$3.6m$11.1m Percent of training delivered using learning technology 11%22% Percent training time in classroom77%61%

27. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 27 Roles of Trainers Strategic Adviser Systems Design and Developer Organization Change Agent Instructional Designer Individual Development and Career Counselor Coach / Performance Consultant Researcher

28. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 1 - 28 Who Provides Training? Who Is In Charge of Training?