2. According to the Association for Talent development (ATD),
formerly the American Society
for Training and Development (ASTD), U.S. organizations spent
$156 billion in 2011 on
employee learning and development (Miller, 2012). The
commonly held belief is that these
substantial expenditures are investments in human capital, with
returns in the form of higher
employee productivity, talent retention, and the creation of a
sustainable human-based com-
petitive advantage.
Web Link
The Association for Talent Development
www.td.org
ATD is an organization of experts in training and development.
It is one of the most widely
recognized organizations of this kind in the United States and
globally. The ATD attracts
members from around the world and from all types of
organizations, all sharing a common
professional interest in training and development processes and
in HRM.
Introduction
Training is a process that provides employees with
opportunities to obtain the necessary
knowledge, skills, and abilities (KSAOs) that enable them to
perform their current job-related
duties more effectively and responsibly. Employee
development, on the other hand, is not
necessarily related to the job an employee currently holds,
although it can be related to that
4. resale or redistribution.
www.td.org
http://businesscasestudies.co.uk/aldi/business-expansion-
through-training-and-development/#axzz2cvNpvDxn
http://businesscasestudies.co.uk/aldi/business-expansion-
through-training-and-development/#axzz2cvNpvDxn
Section 7.2 The Training Process
7.1 The Strategic Value of Training and Development
Training imparts knowledge. Because knowledge is a key to
organizational success, training must
be considered strategically. Training creates value through
investing in employees who add value
to an organization and who constitute its intellectual capi-
tal. Training helps organizations leverage knowledge, and it
therefore enables them to become more competitive. Even
organizations that have exceptional recruitment and selec-
tion competencies sometimes find that they lack critical
KSAOs because environmental, market, and technological
changes continuously render existing KSAOs redundant,
obsolete, or of limited use. However, training by itself does
not have any strategic value unless it is linked to organiza-
tional goals and objectives. In other words, training should
be designed, implemented, and evaluated so that it contrib-
utes to measurable improvements in organizational core
competencies.
Training can also have a positive effect on an organiza-
tion’s rate of employee retention. Workers are on the
lookout for employers who offer and promote training
and career advancement. Training and career develop-
ment are valued more highly than high salaries, and
they contribute to job satisfaction. Therefore, training
5. plays a critical role in attracting and retaining talent
(Hequet, 1993).
7.2 The Training Process
Training starts with an accurate, comprehensive, and
strategically oriented assessment of
an organization’s training needs. Training is then designed and
developed based on those
needs. Strategic decisions must be made regarding how, when,
where, and by whom train-
ing should be delivered to maximize its effectiveness and
impact. Finally, a comprehensive
assessment of training outcomes makes it easier to evaluate how
well a training program
has met the organization’s identified needs and objectives. This
information feeds into
subsequent cycles of training needs assessments and leads to an
ongoing improvement of
Discussion Questions
1. How does Aldi’s business model differ from its competitors?
2. How does Aldi balance cost savings with training and
development expenditures?
3. Is it reasonable for Aldi to invest in training and
development, in an industry where high
employee turnover is the norm?
Blend Images/Blend Images/Superstock
Training adds value to an
organization’s workforce, and
also has a positive effect on
retention rates.
7. talent
Selection and
job fit
Performance
appraisal/
management
Training and
development
Compensation
Benefits and
benefit
administration
• reaction
• learning
• behavior
• results
Section 7.2 The Training Process
training initiatives. Figure 7.1 summarizes the training process
and relates it to the strate-
gic HRM process.
Figure 7.1: Training and development
Training
delivery
10. 2. An employee asks his supervisor and coworkers too many
questions and seems to
always need help and assurance that he is on the right track.
3. An employee wastes his time and his coworkers’ time,
hopping between cubicles to
chat and gossip.
Many organizations would approach these three situations
indiscriminately, treating them all
as training needs. For example, all three of these individuals’
managers might ask HR to train
their staff on teamwork, technical skills, interpersonal skills,
and office etiquette. However,
only the second scenario clearly signals a training need. The
employee who asks too many
questions may lack technical KSAOs or the self-efficacy to
apply his current KSAOs, both of
which can be enhanced through training.
The first employee’s preference for individual work may be due
to her personality trait of
introversion, which cannot be changed through training. Or
perhaps her preference pro-
ceeds from a lack of trust, which is part of the organization’s or
work unit’s culture. Alter-
natively, the reward system of the organization or work unit
may be geared toward indi-
vidual performance rather than collaboration and teamwork.
Again, training is not the
best intervention to resolve these challenges. Other
organizational interventions include
changing the selection criteria for that position to hire more
extroverted individuals, intro-
ducing organizational development initiatives to increase trust,
12. Section 7.2 The Training Process
hourly rate or a fixed salary, or if he believes that playing
office politics is the way to move ahead
in his organization. Changing the reward process to depend on
productivity rather than “face
time” or politics may be appropriate for this situation.
Training needs assessment (TNA) is the first stage of the
training process. Training needs
are assessed through evaluating performance at the
organizational and individual levels, and
identifying any gaps between the current and the required
competencies that might hinder
the organization’s progress. If training is indeed necessary, then
the next step is to determine
the type of training that will most effectively strengthen the
specific areas where employees
are struggling (O’Connor, 2006).
Three sources of information help an organization determine the
type of training it needs:
• Organizational analysis makes it possible to determine the
current and future needs
for KSAOs, taking into consideration internal and external
forces that could pos-
sibly have an impact on training. High absenteeism or turnover
are also considered
throughout this process.
• Job analysis or task analysis is the review of job specifications
to compare the KSAOs
needed to perform a specified job with the KSAOs an employee
currently has.
13. • Individual analysis compares employee performance against
preestablished per-
formance standards. In this case, performance appraisal data can
be used as a good
source of information for the analysis. Moreover, input from
employees themselves
can also help an organization identify its training needs.
Training Design
Once an organization determines that training is needed, the
next step is training design:
setting the training’s objectives and priorities. The objectives
depend on the capabilities that
employees currently have and the new capabilities that an
organization wants them to have.
These training objectives become the foundations for
developing, delivering, and evaluat-
ing training outcomes. Training objectives should also be
communicated to trainees to allow
them to see the big picture; this process is referred to as whole
training, and it increases train-
ing effectiveness.
Learner readiness, learning styles, and transfer of learning are
three factors that should be
addressed during the training design stage to ensure that the
training will be effective:
1. Learner readiness is the capacity, willingness, and motivation
to learn. It is the first
of many factors to be addressed during the training design
stage. Employees must
at least possess fundamental math, writing, and reading skills to
be able to grasp
the content of the training program. If employees lack these
fundamental skills, then
15. • Mastery and success experiences increase employees’
confidence by helping them
master a task successfully. Maintaining trainees’ confidence is
challenging when
they are faced with new challenges. However, trainees’
confidence can increase
when experienced trainers and coaches offer them “guided
mastery” experiences
through a series of training tasks that gradually increase in
difficulty.
• Observation and modeling are techniques used when
experienced trainers
demonstrate desired job behaviors. These techniques are
particularly suit-
able when trial-and-error learning is prohibitively expensive or
too risky—for
example, for pilots, surgeons, and construction workers. In
these cases, expe-
rienced trainers can demonstrate or model the desired job
behaviors. Observ-
ing a model successfully complete a task has been found to
increase trainees’
confidence.
• Social persuasion involves receiving positive feedback and
listening to motiva-
tional speakers. Although this method influences trainees less
strongly than mas-
tery and modeling training techniques, it can instill a confident,
can-do attitude in
learners.
• Physiological and psychological arousal make trainees more
confident about their
learning abilities. Training can be designed to capitalize on
16. physiological and
psychological arousal through setting reasonable start and end
times, securing a
distraction-free learning environment, including activities that
put trainees in a
good mood, and providing adequate breaks and nutritious meals
throughout the
training. Trainees’ general health also affects their ability to
learn.
2. Learning styles are another factor to be addressed during the
training design
stage. People learn in different ways, so there is no single way
that works best for
everyone. The Felder-Silverman model is one of the recognized
models of learn-
ing styles. According to this model, individual learners can have
any combination of
these four continua of learning styles:
• Active or reflective
• Sensing or intuitive
• Visual or verbal
• Sequential or global (Felder & Spurlin, 2005)
Other models and classifications systems of learning styles are
also available and
commonly used. Learning styles can be incorporated into the
training design stage
to align the training with the trainees’ particular learning styles.
Since training
often involves learners with different styles, trainers who utilize
multiple methods
can deliver a more effective training that meets the needs of
more learners (Karns,
2006). However, more recent experimental studies show limited,
18. • An online step-by-step presentation showing workers behaving
in safe and haz-
ardous ways with a narrated explanation of the behaviors
• A site visit and in situ demonstration of safe and hazardous
situations
The above alternatives are progressively better at enhancing
learner readiness and facilitat-
ing training transfer.
Training Development
Training design helps an organization
answer the “what” questions about train-
ing—such as what are the training objec-
tives, what are the trainees’ learning styles,
and what will enhance learners’ readi-
ness and knowledge transfer? In contrast,
training development answers the “how”
questions. It is about finding the content
and resources to meet the training’s goals
and objectives.
The training development stage requires
numerous decisions. The most criti-
cal is whether the organization has the
resources to develop, deliver, and assess
training in house. According to ATD,
about two-thirds of training expenditures by U.S. organizations
are for internal learning func-
tions, such as training staff salaries and the administrative costs
involved in internal develop-
ment. However, training development, delivery, and evaluation
are often outsourced if the
needed training will be long or complex, requires specialized
expertise, or requires assess-
20. Section 7.2 The Training Process
culture that encourage ongoing learning and development at
both the individual and organi-
zational levels.
If training will be developed in house, the developers will need
to determine:
• The topics to be covered
• The skills to be practiced
• The mastery levels to be achieved for each, based on the
predetermined needs and
objectives
Developers will also need to select and develop the materials
for the training. A critical
decision is whether to develop new learning material, adapt
existing material from internal
or external sources, or use off-the-shelf material. New learning
material has the advan-
tage of being organization-specific. This makes it most relevant
to the training needs of the
employees. It is also most likely to yield organization-specific
knowledge, which can more
effectively build unique competencies than off-the-shelf
training material that competitors
could copy and use for their employees. However, developing
new training material can
be costly and time consuming. It may require hiring subject-
matter experts. On the other
hand, if the training needs and objectives can be met using
available material, then this
21. material can still be adapted to become more organization-
specific at a fraction of the cost
and time.
Training Delivery: Decisions About Types of Training
Training development focuses on training content and how well
it meets training needs and
objectives, while training delivery focuses on training methods
and logistics. Many critical
decisions are made at this stage, and many delivery options are
weighed so that trainees can
benefit as much as possible from the content.
Formal Versus Informal Approaches
Formal training is structured: its content, approach, sequence,
and organization are all
predetermined. One example of formal training is the course
you’re taking. Tremendous
thought and energy have been invested in designing and
developing this course before its
delivery, and the course follows an established structure,
including its process and out-
comes. However, formal training does not have to be in a
classroom setting. It can be online,
as this course is. Formal training can also be in the form of
formal mentoring relationships
where protégés are assigned to mentors and specific mentoring
logistics and outcomes are
predetermined.
Informal training is not as systematic or goal oriented as formal
training is. Informal train-
ing may occur through interacting with supervisors and
coworkers, asking questions, hav-
ing informal discussions, or independent reading. Informal
training is often challenging to
23. ing takes place on the job.
When an employer sponsors off-the-job
training, workers are usually given time off
from work to attend training elsewhere.
Employees may also use their personal
time or employer approved vacation time to
pursue additional off-the-job training such
as courses offered at training centers, evening classes at a local
college, college programs, and
self-study.
On-Site Versus Off-Site Training
Training may take place at an employer facility or another
venue. One of the advantages of
on-site training is that there is no need for employees to
commute to receive training, which
can save time. The cost of on-site training can also be lower
because additional costs such as
rental charges and transportation are avoided. On-site training
may also be more beneficial to
an organization because it gives employees the chance to
associate what they learn with the
workplace. This benefit especially applies in on-the-job
training.
However, off-site training can be a better option when the
training goal is developing new
skills and preparing employees for future positions, challenges,
or responsibilities. One
of the advantages of off-site training is that employees are not
interrupted while they
are being trained, which helps them focus on the capabilities
being taught. Off-site train-
ing may also be necessary if space or resources are not available
on site. For example,
25. taught to students at the campus. Under this arrangement,
employees can take their classes
together and at times that do not interfere with working hours.
Professional certifications are offered by specialized
organizations or associations that are
accredited to train and assess professionals in their areas of
specialization. Holding a profes-
sional certificate means that an employee is well equipped with
the knowledge, experience,
and skills necessary to perform job duties effectively. A
professional certification can some-
times be one of the requirements for employment or practice.
The links below provide exam-
ples of certifications required to practice engineering, medicine,
and law.
Web Links
The Professional Engineering Exam
http://ncees.org/exams/pe-exam/
The American Board of Medical Specialties
http://www.abms.org/
The National Council of Bar Examiners
http://www.ncbex.org/
Employee-Initiated Versus Employer-Initiated Training
Employers initiate training for many purposes. They may want
to provide career develop-
ment opportunities, prepare employees for future
responsibilities or positions, develop new
KSAOs in workers for their current roles, or help employees
become more effective. Employ-
ers may also want to prepare new employees for their new roles
27. Section 7.2 The Training Process
content. However, if learners do not possess good computer
skills or self-motivation, they
may not be able to benefit much from self-paced training.
Moreover, it is usually costly and
time consuming to develop high-quality self-paced materials.
However, once they are devel-
oped, the cost per trainee becomes exponentially lower as the
initial development costs are
spread out over a larger number of trainees.
Noe (2008) identifies five issues that need to be considered in
developing a successful self-
paced training:
• A thorough job analysis to identify the tasks that must be
covered.
• Trainee-centered learning objectives directly related to the
task and indicating what
information is important, what actions the trainee should take,
and what the trainee
should master.
• Content for the learning package based on the trainee-centered
learning objectives
including scripts for videos and text for computer delivered
training.
• Content broken down into smaller modules that always begin
with the objectives
that will be covered and include practices for each module and a
method to enable
the trainee to evaluate his/her learning.
28. • Evaluation packages that include evaluation of the trainee and
evaluation of the
learning package.
On the other hand, facilitated training has a specific date and
time. The host organization
sets a schedule for the training in which an instructor or a
facilitator will be available to train
the trainees. Facilitated training usually requires a minimum
number of learners, which may
sometimes be hard to reach. In addition, well-equipped trainers
must be available to deliver
an effective training program, especially if it is facilitated
online.
Mandatory Versus Optional Training
Some types of training may be required for all employees in
accordance with legal rules and
regulations enforced by agencies such as the Occupational
Safety and Health Administra-
tion (OSHA) and the Equal Employment Opportunity
Commission (EEOC). Examples include
safety training and sexual harassment training. Other training
may be required for ongoing
recertification. An organization may also mandate training to
keep its employees’ KSAOs up to
date, prepare them to meet future goals and objectives, or
resolve performance deficiencies.
However, many organizations also offer their employees a wide
range of optional training to
choose from, based on their interest and availability. Optional
training may cover technical
or interpersonal topics that would be beneficial for professional
growth. It may also cover
30. workers are more likely to prefer
online training. Its many advantages include lower costs per
trainee, flexibility, and access to
a greater number of employees from a broader geographic area.
Online training may be syn-
chronous (at the same time, as a group) or asynchronous (at
each employee’s convenience).
Asynchronous online training also lends itself well to self-
pacing, which allows trainees to
take their time and master challenging skills.
In general, blending a variety of training methods is
recommended to cater to the needs,
schedules, and learning preferences of different groups of
trainees (Mirocha, 2005; Rossett,
2006). For example, safety training may include the following
steps:
• An online, self-paced component to cover the basics
• A formal, instructor-led component to address questions
• A hands-on component for on-the-job training
• Informal mentoring by the trainee’s supervisor to ensure
correct and consistent
application on the job
Similarly, a sales training may combine face-to-face
interpersonal skills training, online tech-
nical training on the organization’s products and services, and
shadowing a more experienced
salesperson in the field.
Training Evaluation: A Multi-Level Perspective
After training has been delivered, it is critical that organizations
assess whether it has met
the needs and objectives it was designed for. Two critical
32. important to assess how much learning actually took place.
Kirkpatrick’s second level of
assessment addresses learning, typically through some form of
testing that examines the
trainees’ degrees of mastery for what they have learned. For
example, trainees may be asked
to recall, reiterate, or discuss what they have learned. They may
also be asked to apply it to a
scenario or use the information to analyze
a hypothetical situation, make a decision,
or solve a problem.
In Kirkpatrick’s third level of assessment,
change in work behavior is assessed to see
if the training has produced the desired
change in the way employees do their jobs.
For training to be effective, it is also crucial
that its impact extend beyond the train-
ing to affect actual behavior on the job.
For example, production workers can be
assessed after training for increased speed
or quality. Salespersons can be assessed
for more frequent cross-selling efforts for
the organization’s products, better sched-
uling of sales calls, or increased courtesy
toward clients.
Kirkpatrick’s fourth and most important
level of training assessment is the actual results of training, or
the impact of training on the
bottom line. Unfortunately, this impact is seldom assessed. It is
important that trainees react
positively to the training, learn from it, and alter their work
behaviors based on what they
have learned. Effective training should also lead to a positive
impact on the organization’s
33. profitability, efficiency, and effectiveness; however, it is often
difficult to quantify the dollar
value added from training. Difficulties in measurement lead
many organizations to ignore
this crucial assessment level. Unfortunately, in today’s tight
economy, an inability to quan-
tify the benefits of training and development often leads to
significant cuts in budget alloca-
tions toward these important human investments. Human
resource departments may also
be perceived by the organization’s various stakeholders as
lacking accountability for scarce
resources, which reflects poorly on HR departments’ ability to
contribute to strategic organi-
zational goals. Although Kirkpatrick’s model is the most widely
used, there are other models
for training evaluation, such as Kaufman’s five-level model,
which adds the societal impact,
and the Kirkpatrick-Phillips model, which adds return on
investment in training as a fifth
level of evaluation.
There are three approaches to determining when and who to
evaluate:
• Post-measurement
• Pre-/post-measurement
• Pre-/post-measurement with a control group
In post-measurement assessment, the effectiveness of the
training is measured afterward
by verifying that trainees’ performances will now meet
expectations. However, sometimes
Monkeybusinessimages/iStock/Thinkstock
35. of improved performance. It can be argued that trainees’
performance levels would have
improved without any training, simply with practice and more
experience over time. Alter-
native interpretations may also include changes in economic
conditions, organizational
culture, or reward systems. Moreover, people also tend to
perform slightly better when
they know they are being observed or tested; this common
phenomenon is known as the
Hawthorne effect.
The pre-/post-measurement with a control group method tackles
the deficiencies of the first
two methods by comparing the trainees to a control group—
another group of workers with
the same level of skills who do not go through the training. The
trainees and the control group
are tested both before the training and after it. Often, to account
for the Hawthorne effect, the
control group is given an unrelated intervention. If the trained
group shows more pre-/post-
measurement improvement than the control group, then this
difference is a good indication
that the training was effective.
The pre-/post-measurement method is also useful to compare
alternative types of train-
ing or other interventions. For example, an organization may
want to resolve performance
deficiencies within a particular function, such as production. It
may therefore design a
training intervention, a modified reward program, and a job
redesign initiative. The orga-
nization can then randomly assign the workforce into four
groups: a group that receives
37. introducing them to their
jobs; their managers; their coworkers; and the organization’s
structure, culture, and pro-
cesses. Orientation and onboarding can also help new
employees reach the desired perfor-
mance levels sooner by accelerating their
development and moving them faster
along the learning curve. An effective ori-
entation can also help the organization
build a positive image among new
employees. Along with operating manag-
ers and supervisors, HR professionals are
often the organization members who
carry out orientations, although many
organizations today have formal orienta-
tion and onboarding programs that are
delivered by training staff or online. For a
great example of extensive orientation
programs, visit the web site below, which
outlines the orientation program for new
members of the nursing team at Yale-
New Haven Hospital. This program spans
12 weeks to 6 months, depending on spe-
cialization and prior experience.
George Doyle/Stockbyte/Thinkstock
Orientation helps new employees reach desired
performance levels sooner and gives them a
better idea of what the organization expects of
them.
Web Link
Yale-New Haven Hospital Orientation Program for Nurses
http://careers.ynhh.org/career-opportunities/nursing-
39. Nontechnical training can help expand employees’ horizons and
prepare them for chal-
lenges in current roles as well as future roles beyond their
immediate technical job respon-
sibilities. Nontechnical training can also help build and enhance
organizational culture and
align employees’ competencies and skill sets with the
organization’s mission, vision, and
values.
Ongoing Professional Development
Ongoing professional development provides employees with
training throughout their
tenure with the organization. This ongoing training enables
employees to develop the
knowledge and skills needed not only to perform their jobs more
effectively but also to
grow and develop professionally throughout their careers.
Ongoing professional develop-
ment can also help employees develop basic skills such as
reading, writing, and arithme-
tic. Almost 40 million people in the United Stated have a
learning disability, which makes
it challenging to develop basic skills throughout K–12
education (Ketter, 2006; Kalleba,
2007; Salopek, 2007).
Mentoring and Coaching
Mentoring and coaching are two methods of employee
development. Mentoring helps an
employee, also called a mentee or a protégé, to develop his or
her skills by interacting with a
mentor, who is a more experienced coworker or supervisor.
Mentoring can either be planned
by an organization or can follow an employee’s effort to seek a
40. mentor (Fagenson, 1992;
Turban & Daugherty, 1994) or a mentor’s desire to help and
develop the less experienced
employee. Mentors should generally possess good interpersonal
skills, and they should be
trained to be able to perform their duties effectively. In
addition, they also should be evalu-
ated by the organization (Eby, Butts, Lockwood, & Simon,
2004).
Coaching is the hiring of a peer, manager, or outside consultant
for the purpose of training one
or more employees. The coach’s role is broader than a mentor’s.
It is to motivate the employ-
ees as well as help develop their skills. Coaching
can be done in many ways, including one-on-one
coaching, which then enables employees to be on
their own, helps them to learn for themselves, pro-
vides them with resources, or offers a combina-
tion of these approaches. Executive coaching is on
the rise as a training and development approach
for senior management candidates. Traditional,
more structured approaches are not as effec-
tive as executive coaching to develop the higher-
level skills necessary for these strategic roles. For
coaching to be effective, it is best to identify areas
that need improvement and then set goals for this
improvement (Smither, London, Flautt, Vargas, &
Kucine, 2003).
Marcin Balcerzak/iStockphoto/Thinkstock
Executive coaching is an effective
training and development approach for
senior management.
42. temporary increase in responsibili-
ties and authority. For example, self-managed teams may
designate a leader for each project
assigned to the team; this designation constitutes a temporary
upward transfer for the leader,
who will then return to being a member of the team when the
project is over. Transfers can
also take the form of a temporary downward move because of
poor performance or to allow
an employee to build different skills.
International Assignments
International assignments are also considered a form of training
and development. They
give employees opportunities to learn how to deal with different
cultures and different eco-
nomic, social, and political systems. These assignments also
give employees opportunities
to develop their managerial and leadership skills. International
assignments also provide
employees with opportunities for upward mobility in the
organization when they come back;
these assignments are recognized as one of the most effective
ways to prepare future global
leaders (Pope, 2009).
However, international assignments also have some costs and
disadvantages and involve
some sacrifices by employees who go overseas. For instance,
intensive and costly training
is necessary before an international assignment to prepare
employees and their families to
adapt to the challenges in the new host country and to help
lessen cultural shock. Problems
may persist even after this training and may result in failure at
assigned tasks or a prema-
44. then proactively imparting the required knowledge and
developing the needed skills ( Kristick,
2009). The overall purpose of a leadership development
program should be to help the orga-
nization achieve its goals and objectives. Therefore,
organizational strategy and goals must
form the basis of the design, development, delivery, and
evaluation of a training program.
Leadership development can be offered through a combination
of the methods and approaches
discussed earlier, including in-house programs, professional
programs, university programs,
executive coaching, and mentoring. Leadership development can
also be offered through
action learning, in which participants work on real business
challenges while reflecting on
progress and lessons learned (Czarnowsky, 2008). Leadership
development can also be
achieved through a special form of job rotation that is often
referred to as management train-
ing. A management training program is a structured program in
which a high-potential trainee
is groomed for a management position through a carefully
designed sequence of short-term
job transfers and rotations, gaining experience with various
parts of the business, often with
increasing levels of challenge and responsibility. When the
trainee graduates from the pro-
gram, he or she is usually ready to assume a leadership position.
For example, Unilever has a
well-known 2 to 3 year management training program to
develop capable local leaders within
their global operations. The program is designed for young,
recent college graduates who
show high leadership potential. The program promises them an
45. accelerated career path to a
senior management position after they complete the program
successfully.
Leadership development programs vary in their approaches,
methods, level of formality, and
structure. Regardless of these features, a leadership
development program should emphasize
realism, practicality, and application—giving trainees the
opportunity to analyze and solve
real organizational problems (Locke & Tarantino, 2006; Patton
& Pratt, 2002; Zenger, Ulrich, &
Smallwood, 2002).
Career Development
Traditionally, the term career referred to a set of positions an
employee occupied within one
organization, often taking a progressive, upward direction.
However, this is no longer the case
due to the constant changes organizations go through. Examples
of these changes include
downsizing, restructuring, business process reengineering, and
the resulting frequency of
employees changing jobs and employers. Workers are now
moving more toward a protean
career model: workers are now the people who direct the
progress of their careers based on
their own interests, goals, and values (Hall, 2004). This career
model is also related to the
notions of career resiliency and the changing psychological
employment contract discussed
Web Link
Unilever’s Future Leaders Program
http://www.unileverme.com/careers-jobs/graduates/uf
47. dedicated sales representa-
tives in the company—and maybe even in the industry—so
unless this training program
offers new information, it may be a waste of their time.
3. What Andrew finds even more confusing is that in the last
corporate meeting manage-
ment expressed concerns about the increasing default rates on
credit and layaway sales.
Reducing default rates is now one of the strategic goals of the
organization. Because of
his staff ’s excellent and personal relationships with customers,
his store was among the
lowest on default rates. If that’s the case, he wonders why the
sales training is promot-
ing credit and layaway sales instead of emphasizing loyalty
programs and other ways to
establish stronger and longer-lasting relationships with
customers.
(continued)
in Chapter 2. As a result of these changes, workers are seeking
to continually develop new
skills, especially since most careers these days rely on a broader
knowledge base (Arthur,
Claman, & DeFillippi, 1995; Schawbel, 2009).
7.4 Linking Training and Development to the HRM Process
As was depicted in the top half of Figure 7.1, training and
development constitute one of the
eight critical practices in the HRM process. This is because the
purpose of strategic HRM is
to help an organization achieve its goals and objectives through
people. Therefore, training
and development should help improve organizational
49. service to sell more products and cross-sell other products that
the customer does not
necessarily need with no consideration of the customers’
finances. Instead, he prefers to
train his sales staff to better analyze the needs and finances of
one customer and then
sell him or her the product that fits those parameters. He
believes that this strategy is
both more ethical and more conducive to satisfied, loyal
customers who will return to
the store in the long run.
However, Andrew understands that sending someone to this
training program is a require-
ment. The problem is, whom should he send? He’s considering
three candidates:
• Joe White is the new sales representative, fresh out of college,
with no sales experience.
Joe is the lowest-paid and currently the slowest and least
effective representative due to
his lack of experience.
+ Advantages of sending Joe: He’ll definitely learn something
new, and the lost produc-
tivity is the least compared to sending one of the higher
performers.
- Disadvantages of sending Joe: Joe is young and
impressionable. If he comes back
indoctrinated in those morally questionable selling techniques
and ends up outsell-
ing others and making more money, that success could have a
negative impact on the
store culture. It may also upset the other salespeople to know
that Andrew selected
50. Joe to go to this training when they are all overdue for time
away from the store and
when they might enjoy this apparently fun event.
• Doug Green is the longest-tenured, most experienced sales
representative with the high-
est sales volume across all stores. However, Doug is very
outspoken against corporate
greed; he prides himself on never taking advantage of customers
or selling them some-
thing they don’t really need.
+ Advantages of sending Doug: Doug will never fall for the
newest trends and manage-
ment fads. He will question everything, which may push the
company to reevalu-
ate its plans and strategies. His attendance will not compromise
the store culture
because he will discern the best new messages to communicate
when he comes back.
Sending Doug will also give him good visibility at the head
office. Since Doug is over-
due for a promotion, Andrew appreciates that this visibility will
be good for Doug’s
career progress.
- Disadvantages of sending Joe: Doug will never change his
ways, nor does he need to,
in Andrew’s opinion. So sending him to this training program is
a pointless waste of
the company’s resources. Sparing Doug for a week will also
definitely hurt the store’s
sales volume.
• Emma Brown has many years of experience in sales in a
variety of industries, including
52. - Disadvantages of sending Emma: Emma may have conflicts
with others at the train-
ing, which could reflect poorly on the store’s image at the head
office and compro-
mise Andrew’s leadership. The training may also indoctrinate
Emma in ideals that
are wrong from Andrew’s perspective, which Emma seems more
likely to adopt than
Doug would be. Andrew also feels threatened by the possibility
that the head office
may consider Emma as a replacement for him, Andrew, if she
seems more open to the
training’s bottom-line value system.
Discussion Questions
1. If you were in Andrew’s position, which representative
would you choose? Justify your
answer. Optional: Work independently, and then compare notes
with the rest of your
group or with the class. Make your case for the sales
representative of your choice,
trying to win as many votes as possible for your choice of
representative and discourage
your classmates from voting for others. Find out which
representative received the most
votes.
2. If you were in Claudia’s position, how would you go about
the training process to ensure
that the program contributes to the organization’s performance
and effectiveness and
that the best-suited candidates are sent to the training?
Optional: Work independently,
and then compare notes with the rest of your group or the class.
54. Section 7.5Opportunities, Challenges, and Recent Trends in
Training and Development
Buren, 2005). While many training programs may be more
effectively administered exter-
nally through experienced third-party trainers or specialized
entities, the costs of doing so are
becoming prohibitive. For example, many organizations have
significantly reduced or elimi-
nated their tuition reimbursement programs, although these
programs have been shown to
reduce turnover and facilitate talent retention, provided that
they are accompanied with pro-
motions and career progress (Benson, Finegold, & Mohrman,
2004).
Realizing the importance of training for employee motivation
and productivity, organizations
are facing the challenge of finding more cost-effective ways to
deliver quality training. Orga-
nizations are now attempting to cut costs through using in-house
trainers and facilities. For
example, experienced employees can mentor less experienced
coworkers or provide on-the-
job training. However, this opportunity comes at the sometimes
high cost of the reduced pro-
ductivity of the more experienced employees who spend time
training others. Online training
is discussed next; it is another cost-effective alternative to more
expensive face-to-face train-
ing options.
Technological Developments: Online and Open-Source Training
55. Online training requires the use of the
Internet or an intranet, and it can be
accessed from anywhere in the world.
As discussed earlier, online training is
on the rise. For example, in a survey,
60% of the organizations surveyed had
online training initiatives, and 86%
placed a high priority on moving their
face-to-face training online (Strother,
2002). Research findings also suggest
that the quality of online learning is
comparable, and sometimes even supe-
rior, to face-to-face learning (Maki et
al., 2000; Redpath, 2012). For example,
IBM saved $200 million in 1999 and
provided five times the learning at one-
third the cost by switching to online
training. The accountancy firm Ernst &
Young reduced training costs by 35% while improving
consistency and scalability through
using a combination of 80% online and 20% classroom
instruction. The aerospace company
Rockwell Collins reduced training costs by 40% by moving only
25% of its training online
(Strother, 2002).
In many ways, online training has changed the way
organizations design, develop, deliver,
and evaluate training. For example, open-source training is a
form of online training that
is available free of charge to the public. Many online resources
are available at no cost and
are continuously updated by experts who are motivated to
spread new knowledge in their
fields, advertise their discoveries, or build their reputations to
establish a wider client
57. priority for organizations that want to be prepared when the
baby boom generation retires.
Globalization is also increasing the pressure for more effective
talent development, manage-
ment, and retention through succession planning (Rothwell,
2010). Organizations are now
training and preparing employees who they think have the
potential to hold management
positions, although organizations focus almost exclusively on
critical top positions, which is a
rather limited perspective. Instead, training and development for
succession planning should
be a strategic goal at all levels of the organization. This
planning can maintain competitive-
ness in cases of turnover or job changes and can facilitate
promotions from within.
Effects of Training and Development on Employees
The primary purpose of training is to enhance employees’ skills
and enable them to perform
their jobs more efficiently and effectively than they would
without the training; training usu-
ally, therefore, has a positive effect on employee motivation,
performance quality, productiv-
ity, and engagement. In addition, creating an environment that
promotes training and offers
career development opportunities will likely boost employee
motivation, morale, and reten-
tion (Huselid, 1995).
Diversity Training
Given the increased diversity in the workplace, the importance
of diversity management can-
not be stressed enough. The purpose of diversity training is to
create cross-cultural awareness
among employees so that they can avoid discriminatory or
59. intensive, high-quality train-
ing, then employees will eventually leave the organization for
better offers—taking with
them all the training they received—and the organization will
be left with the training costs it
incurred. Instead, these organizations believe that it is more
cost effective to hire employees
who already possess the KSAOs necessary for the job. While
there is some truth to employers’
concerns about post-training turnover, research shows that
training can reduce turnover while
in progress. Following training with promotion can also reduce
turnover afterward (Benson et
al., 2004). Thus, for an organization to effectively increase
capabilities while retaining talent,
its training must be part of strategic HR planning. Long-term
succession and career develop-
ment plans are no exception.
Furthermore, training has been shown to yield handsome returns
for both shareholders and
employees. For example, an extensive study of 575 publicly
traded companies showed that
companies that invested twice the industry average on training
also outperformed the S&P
500 by 4.6% on various financial performance measures (Bassi
& McMurrer, 2004). Organiza-
tions with higher training expenditures per employee clearly
had higher price-to-book-value
ratios, indicating human-based value added. Employees of those
organizations also showed
higher income (Bassi, Ludwig, McMurrer, & Van Buren, 2002).
Training current employees,
therefore, does pay off.
Training can also protect employees, customers, the
60. organization, and society at large. For
example, safety training can help prevent worksite accidents,
which can compromise employ-
ees’ lives and health. Production training can help detect
defective products or faulty processes,
which can expose customers and society to health and safety
risks. In turn, it can protect the
organization’s reputation of preventing accidents and detecting
defective products and faulty
processes before they pose serious risks. This achievement also
helps an organization avoid
costly lawsuits from those affected by improper or insufficient
training.
(continued)
Safety Training
As discussed in previous chapters, OSHA requires safety and
health training programs in
many industries in the United States. The purpose of such
programs is to inform employees
about workplace safety standards and ensure everyone’s safety.
These programs may include
topics such as accident prevention and safety promotion,
accident and emergency response,
chemical and hazardous material safety, and general safety
practices (Barnett, 2000).
Effective safety training creates awareness of the significance
of workplace safety and pro-
motes a safe culture within an organization. Furthermore, it
saves an organization money
and time by lowering the number of injuries and deaths. Among
the many other benefits are
fewer incidences of illness, property damage, and worker
compensation claims. Studies show
62. http://us.greatrated.com/stryker
Stryker understands the value of on-the-job training and
development. This medical devices
manufacturer takes the concept to an extreme, allowing its
employees to see its products in
action by providing them with opportunities to observe
surgeries being performed using these
products. Besides training and development, these opportunities
enrich employees’ jobs and
give them a sense of meaning and purpose.
Eye on the Goal
Make or Buy? The Payoff From Training Current
Employees (continued )
However, it is now critical, especially in a tight economy, to
assess the value of training not
only in terms of employee reactions, but also in terms of
learning, behavior, and results ( Cascio
& Boudreau, 2011). Unfortunately, a recent survey showed that
only 23% of organizations
reported that measuring the impact of training was a high
priority (O’Leonard, 2010). For
example, many large organizations such as Philips, Estée
Lauder, and Canon have maintained
their investment in leadership development, even during the
recent economic recession
( Mattioli, 2009). Yet only 10% of leadership development
programs go beyond reactions to
also assess the impact of training and development on actual
behaviors (Avolio, Sosik, Jung, &
Berson, 2004).
Section 7.5Opportunities, Challenges, and Recent Trends in
64. performance out-
comes should all be considered.
• Training should also be linked to the various components of
the strategic HR pro-
cess, including HR planning, recruitment, selection, and
performance appraisal. It
should inform and be informed by these processes.
• Organizations can now choose from a wide range of training
methods and
approaches, especially due to technological advances in training
facilitation. The rel-
ative efficacy of each training method depends on the topic at
hand, the trainee,
the trainer, and the organization’s culture.
coaching A broad form of training or
development by a coach who can be a peer,
a manager, or an outside consultant hired
for the purpose of coaching one or more
employees; a coach’s aim is to motivate
the employee and help develop his or her
skills.
development A process which prepares
employees to take on the duties and respon-
sibilities of other positions that they are to
assume in the future.
Felder-Silverman model One of the
recognized models of learning styles; the
model classifies learners as active/reflec-
tive, sensing/intuitive, visual/verbal, and/or
sequential/global.
66. resale or redistribution.
Summary & Resources
Critical Thinking Questions
1. Organizations have budget constraints regarding allocation of
HR related dollars.
Under what circumstances would an organization want to invest
more in training
than in selection (or vice versa)?
2. Because of the sizeable investment that organizations put into
training employees,
through which other HR related processes could they protect
these investments?
3. In reflecting upon Kirkpatrick’s methods of evaluating
training effectiveness, what
happens if trainee reactions to training are mediocre, but
recall/learning, transfer/
behavior, and results are good? Is this good training? How do
the ways to evaluate
training relate to an organization’s ability to evaluate training
effectiveness in the
short term versus long term?
4. When evaluating training success, besides being superior
performers to begin with
(i.e., the example used in the text), under what other
circumstances could a group of
trainees perform well, but not due to the training received? That
is, besides differ-
ences in ability or actual training effectiveness, what factors
67. could make it seem as if
the trainees actually benefited from the training when, in fact,
they did not?
5. If an employee has poor performance evaluations, under what
circumstances could
the issue not be resolved by training the employee?
onboarding See orientation.
orientation Training administered to new
employees to familiarize them with their
jobs; their managers; their coworkers; and
the organization’s structure, culture, and
processes. Also known as onboarding.
self-efficacy A person’s belief about his
or her ability to mobilize the motivation,
cognitive resources, and courses of action
necessary to execute a specific action within
a given context.
training A process that provides employees
with opportunities to obtain the necessary
knowledge, skills, and abilities that will
enable them to perform their current job-
related duties more effectively and responsi-
bly than they would without the training.
training delivery The fourth stage of the
training process, which focuses on the meth-
ods and logistics of training.
training design The second stage of the
training process, in which specific objectives
are set for the training based on the identi-