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Prof. Preeti Bhaskar
1
• Definition of Training
• Training Design Process
• The Forces influencing working and
learning
• The Strategic Training and Development
Process
• Organizational Characteristics that
Influence Training
2
1-3
Training?
Training helps to
bridge the gap
Existing
• Skills
• Knowledge
• Attitudes
Required
• Skills
• Knowledge
• Attitudes
Training - a planned effort by a company to
facilitate employees’ learning of job-related
competencies.
–Competencies include knowledge,
skills or behavior, abilities (KSA)
critical for successful job
performance.
What is Training?
4
1-5
Why is training important?
• Increases employees’ knowledge
• Provides the skills required to work with new technology.
• Helps employees understand how to work effectively in
teams.
• Ensures that the company’s culture emphasises
innovation, creativity and learning.
• Ensures employment security by providing new ways for
employees to contribute to the company.
• Prepares employees to accept each other and work more
effectively together, particularly in a diverse workforce.
5
• To use training to gain a competitive advantage, a
company should view training broadly as a way to
create intellectual capital.
• Intellectual capital is considered an asset, and can
broadly be defined as the collection of all informational
resources a company has at its disposal that can be
used to drive profits, gain new customers, create new
products, or otherwise improve the business
Goal of training
Intellectual capital includes customer capital, human capital,
intellectual property, and structural capital.
6
Training design process
Is based on the principles of Instructional System Design (ISD).
8
1. Conducting Needs
Assessment
Organizational
Analysis’
Personal Analysis
Task Analysis
2. Ensuring Employees’
Readiness for Training
Attitudes and Motivation
Basic Skills
3. Creating a Learning
Environment
Learning Objectives
Meaningful Material
Practice
Feedback
Community of Learning
Modeling
Program Administration
4. Ensuring Transfer of
Training
Self-Management
Peer and Manger Support
5. Developing an Evaluation
Plan
Identify Learning Outcomes
Choose Evaluation Design
Plan Cost-Benefit Analysis
6. Selecting Training
Method
Traditional
E-Learning
7. Monitoring and Evaluating
the Program
Conduct Evaluation
Make Changes to Improve the
Program
1-9
Is sometimes referred to as the ADDIE model
because it includes
– Analysis
– Design
– Development
– Implementation
– Evaluation.
9
1-10
The needs assessment process
10
1-11
Organizational analysis
• Organisational analysis involves considering the
context in which training will occur.
• Three factors need to be considered before choosing
training as the solution to any pressure point:
– Support of managers and peers for training activities
– Company strategy
– Training resources available.
11
1-12
Person analysis
• Person analysis helps to identify who needs training.
• Person analysis involves:
–Determining whether performance
deficiencies result from a lack of knowledge,
skill or ability (a training issue) or from
a motivational or work-design problem
–Identifying who needs training
–Determining employee’s readiness for
training.
12
1-13
What do you want to do in the
future?
13
Carry out a training needs analysis on yourself by...
1. ¡ Listing skills, qualities, experiences and
qualifications you have that will support your future
career
2. ¡ Identifying any skills, qualities, experiences and
qualifications that would be desirable for your future
career but you do not currently possess
3. ¡ Plan the training and development activities you
could undertake to help you gain the necessary
attributes
1-14
10-14
Person analysis
• Factors that influence employee performance and
learning:
– Personal characteristics
– Input
– Output
– Consequences
– Feedback
1-15
Task analysis
• Identifying the important tasks and knowledge,
skills and behaviours that need to be emphasised
in training, in order for employees to complete
their tasks.
1-16
Readiness for training
• Employees have the personal
characteristics (ability, attitudes,
beliefs, and motivation) necessary to
learn program content and apply it on
the job.
• The work environment will facilitate
learning and will not interfere with
performance.
16
1-17
How can managers ensure employee
readiness for training?
• Ensure employees’ self-efficacy.
• Understand the benefits of training.
• Be aware of training needs, career
interests and goals.
• Understand work environment characteristics.
• Ensure employees’ basic skills levels.
• Also consider input, output, consequences and
feedback.
17
1-18
Creating a learning environment
• Employees need to:
– Know why they should learn
– Use their own experiences as a basis for
learning
– Have opportunities to practise
– Receive feedback
– Learn by observing and interacting with others
– Undergo a well coordinated and arranged
training program.
18
1-19
Selecting training methods
Presentation
methods
Hands-on methods Group-building
methods
Classroom
instruction
On-the-job training (OJT) Adventure learning
Distance learning Self-directed learning Team training
Audiovisual
techniques
Apprenticeship Action learning
Simulations
Business games and case
studies
Behaviour modelling
Interactive video
E-learning 19
1-20
Training evaluation
“ the process of collecting the
outcomes needed to determine if
training is effective”.
1-21
Reasons for evaluating training
• To identify the program’s strengths and weaknesses.
• To assess whether the content, organisation and
administration of the program contribute to learning and
the use of training content on the job.
• To identify which trainees benefited most or least from the
program.
• To gather data to assist in marketing programs.
• To determine the financial benefits and costs of the
program.
• To compare the costs and benefits of training versus non-
training investments.
• To compare the costs and benefits of different training
programs, so as to choose the best program.
21
1-22
Outcomes Used in the
Evaluation of Training Programs
Affective
Outcomes
Results
Return on
Investment
Cognitive
Outcomes
Skill-Based
Outcomes
1-23
Outcomes Used in the Evaluation of
Training Programs
• Cognitive Outcomes
• Determine the degree to which trainees are familiar
with the principles, facts, techniques, procedures, or
processes emphasized in the training program
• Measure knowledge trainees learned in the program
• Skill-Based Outcomes
• Assess the level of technical or pshyco-motor skills
• Include acquisition or learning of skills and use of
skills on the job
1-24
Affective Outcomes
• Include attitudes and motivation
• Trainees’ perceptions of the program including the facilities, trainers, and
content.
• Results
Determine the training program’s payoff for the company.
• Return on Investment (ROI)
Comparing the training’s monetary benefits with the cost of the training
direct costs
indirect costs
benefits
Forces Influencing Working and
Learning
1. Economic cycles
2. Globalization
3. Increased value placed on intangible assets and human
capital
4. Focus on link to business strategy
5. Changing demographics and diversity of the workforce
6. Talent management
7. Customer service and quality emphasis
8. New technology
9. High-performance work systems
25
– Provide an opportunity for companies to
take a closer look at training and
development to identify those activities
that are critical for supporting the business
strategy as well as those mandated by law.
1. Economic cycles
26
– Provide training and development
opportunities for global employees.
– Provide cross-cultural training to prepare
employees and their families to understand
the culture and norms of the country to
which they are being relocated and assists in
their return to their home country after the
assignment.
2. Globalization
27
1-28
3. Increased Value Placed on Intangible
Assets and Human Capital
• Human capital: Refers to employees’
– Attributes, Life experiences, Knowledge,
Inventiveness
– Energy and enthusiasm
• Intellectual capital: Codified knowledge that
exists in a company
• Social capital: Relationships in the company
• Customer capital: Value of relationships with
persons or other organizations
28
Examples Of Intangible Assets
Human Capital
• Tacit knowledge
• Education
• Work-related know-how
• Work-related competence
Social Capital
• Corporate culture
• Management philosophy
• Management practices
• Informal networking systems
• Coaching/mentoring relationships
Customer Capital
• Customer relationships
• Brands
• Customer loyalty
• Distribution channels
Intellectual Capital
• Patents
• Copyrights
• Trade secrets
• Intellectual property
29
1-30
4. Focus on link to business
strategy
30
1-31
5. Changing Demographics and
Diversity of the Work Force
• Increase in racial and ethnic diversity
– Ethnically and racially diverse labor force
– Increased participation of minorities in
the work force
• Aging labor force
– Increased work-force participation of
individuals 55 years or greater
• Generational differences
• Talent management - attracting, retaining,
developing, and motivating highly skilled employees
and managers.
• It is becoming increasingly more important because
of:
– occupational and job changes.
– retirement of baby boomers.
– skill requirements.
– the need to develop leadership skills.
6. Talent management
32
– Total Quality Management (TQM) - a
companywide effort to continuously improve the
ways people, machines, and systems accomplish
work.
• Core values of TQM
– Methods and processes are designed to meet the needs of internal
and external customers.
– Every employee in the company receives training in quality, which
is designed into a product or service to prevent errors from
occurring rather than being detected and corrected.
– The company promotes cooperation with vendors, suppliers, and
customers to improve quality and hold down costs.
– Managers measure progress with feedback based on data.
7. Customer service and quality
emphasis
33
– Six Sigma process - a process of measuring,
analyzing, improving, and then controlling processes
once they have been brought within the narrow six
sigma quality tolerances or standards.
– Training can help companies meet the quality
challenge by teaching employees statistical process
control and engaging in “lean” processes.
– Lean thinking - involves doing more with less
effort, equipment, space, and time, but providing
customers with what they need and want.
– ISO 10015 - a quality management tool designed to
ensure that training is linked to company needs and
performance.
34
– Is changing the delivery of training and makes training
more realistic.
– Allows training to occur at any time and any place.
– Reduces travel costs.
– Provides greater accessibility to training and consistent
delivery.
– Provides the ability to access experts and share learning
with others.
– Provides the possibility of creating a learning
environment with many positive features such as
feedback, self-pacing, and practice exercises.
– Allows companies greater use of alternative work
arrangements.
8. New technology
35
– Work teams - involve employees with various skills
who interact to assemble a product or provide a
service.
– Cross training - training employees in a wide range
of skills so they can fill any of the roles needed to be
performed on the team.
– Virtual teams - teams that are separated by time,
geographic distance, culture, and/or organizational
boundaries and that rely almost exclusively on
technology to interact and complete their projects.
• Use of new technology and work designs are supported by human resource
management practices.
9. High performance models of work systems
36
Key trends in learning initiative
investments:
– Direct expenditures, as a percentage of payroll and
learning hours, have remained stable over the last
several years.
– There is an increased demand for specialized
learning that includes professional or industry-
specific content.
– The use of technology-based learning delivery has
increased from 11 percent in 2001 to 33 percent in
2007.
37
(cont.)
– Self-paced online learning is the most frequently
used type of technology-based learning.
– Technology-based learning has helped improve
learning efficiency, and has resulted in a larger
employee–learning staff member ratio.
– The percentage of services distributed by external
providers dropped from 29 percent in 2004 to 25
percent in 2007.
38
American Society of Training
and Development Competency
Model (2004)
39
1-40
40
Learning Strategist
Business partner
Project manage Professional Specialist
WORKPLACE LEARNING &
PERFORMANCE ROLES
COACHING
DELIVERING TRAINING
DESIGNING LEARNING
FACILITATING ORGANIZATIONAL CHANGE
IMPROVING HUMAN PERFORMANCE
MANAGING ORGANIZATIONAL KNOWLEDGE/SOCIAL
LEARNING
MANAGING THE LEARNING FUNCTION
MEASURING & EVALUATING
AREAS OF EXPERTISE
INTERPERSONAL BUSINESS/MANAGEMENT PERSONAL
>Building Trust >Analyzing Needs and Proposing Solutions >Demonstrating Adaptability
>Communicating Effectively >Applying Business Acumen >Modeling Personal
Development
>Influencing Stakeholders >Driving Results
>Leveraging Diversity >Planning and Implementing Assignments
>Networking & Partnering >Thinking Strategically
FOUNDATION COMPETENCIES
ASTD COMPETENCY MODEL
Delivering learning and performance competencies with global, business, ad technological
perspectives.
1-41
The Strategic Training and Development
Process
Business
Strategy
Strategic
Training &
Development
Initiatives
Training &
Development
Activities
Metrics That
Show Value of
Training
• Diversify the
Learning Portfolio
• Improve Customer
Service
• Accelerate the Pace
of Employee
Learning
• Capture and Share
Knowledge
• Use Web-Based
Training
• Make
Development
Planning
Mandatory
• Develop Web Sites
for Knowledge
Sharing
• Increase Amount
of Customer
Service Training
• Learning
• Performance
Improvement
• Reduced Customer
Complaints
• Reduced Turnover
• Employee
Engagement
41
1-42
The Strategic Training and Development
Process
• Mission: Company's reason for existing
• Vision: Is the picture of the future that the company
wants to achieve
• Values: What the company stands for
• SWOT analysis
– Internal analysis of strengths and
weaknesses
– External analysis of opportunities and
threats
• External analysis: Examining the operating
environment to identify opportunities and threats
42
1-43
The Strategic Training and Development
Process
• Internal analysis
–Identifies the company’s strength
and weaknesses
–Examines the available quantity and
quality of financial, physical, and
human capital
• Strategic choice: The strategy believed to be the
best alternative to achieve the company goals
43
1-44
Formulating the Business Strategy
External
Analysis
Opportunities
Threats
Mission
Why does the
Company Exist?
Goals
Company
Objectives
Strategic Choice
How will we
Compete?
Internal
Analysis
Strengths
Weaknesses
44
1-45
The Strategic Training and Development
Process
• Strategic training and development
initiatives: Learning-related actions that help to
achieve business strategy
45
1-46
Strategic Training and Development Initiatives and Their
Implications
Strategic Training and
Development Initiatives
Diversify the Learning
Portfolio
Expand Who Is Trained
Accelerate the Pace of Employee
Learning
Improve Customer Service
Provide Development
Opportunities and
Communicate with Employees
Capture and Share Knowledge
Align Training and Development
with the Company’s Direction
Ensure that the Work
Environment Supports Learning
and Transfer of Training
Implications
• Use technology, such as the Internet, for training
• Facilitate informal learning
• Provide more personalized learning opportunities
• Train customers, suppliers, and employees
• Offer more learning opportunities to nonmanagerial employees
• Quickly identify needs and provide a high-quality learning solution
• Reduce the time to develop training programs
• Facilitate access to learning resources on an as-needed basis
• Ensure that employees have product and service knowledge
• Ensure that employees have skills needed to interact with customers
• Ensure that employees understand their roles and decision-making authority
• Ensure that employees have opportunities to develop
• Ensure that employees understand career opportunities and personal growth opportunities
• Ensure that training and development addresses employees’ needs in current job as well as
growth opportunities
• Capture insight and information from knowledgeable employees
• Organize and store information logically
• Provide methods to make information available (e.g., resource guides, websites)
• Identify needed knowledge, skills, abilities, or competencies
• Ensure that current training and development programs support the company’s strategic needs
• Remove constraints to learning, such as lack of time, resources, and equipment
• Dedicate physical space to encourage teamwork, collaboration, creativity, and knowledge
sharing
• Ensure that employees understand the importance of learning
• Ensure that managers and peers are supportive of training, development, and learning
46
1-47
Questions to Ask to Develop Strategic
Training and Development Initiatives
1. What is the vision and mission of the company? Identify the strategic
drivers of the business strategy.
2. What capabilities does the company need as a result of the business
strategy and business environment challenges?
3. What types of training and development will best attract, retain, and
develop the talent needed for success?
4. Which competencies are critical for company success and the business
strategy?
5. Does the company have a plan for making the link between training and
development and the business strategy understood by executives,
managers, and employees or customers?
6. Will the senior management team publicly support and champion
training and development?
7. Does the company provide opportunities for training and developing not
only individuals but also teams?
47
1-48
The Strategic Training and Development
Process
• Metrics
– Business-level outcomes chosen to measure
the overall value of training or learning
– Strategic business related measures not
linked to one course or program
• Balance scorecard
– Means of measurement for:
• Overall company performance
• Performance of departments or functions
48
1-49
The Strategic Training and Development
Process (cont.)
–Considers four perspectives
• Customer
• Internal innovation
• Learning
• Financial
49
1-50
50
Organizational Characteristics
That Influence Training
1-51
• Role of managers
– Managers must:
• Manage individual and performance
• Develop employees and encourage continuous learning
• Plan and allocate resources
• Coordinate activities and interdependent team
• Facilitate decision making
• Create and maintain trust
• Represent one’s work unit
51
1-52
Organizational Characteristics That
Influence Training
• Top management support
– The CEO is responsible for
• Setting a clear direction for learning
• Providing encouragement, resources and commitment
for strategic learning
• Governing learning and reviewing objectives
• Developing new learning programs for the company
• Teaching program or providing online resources
• Serving as role model for learning
• Promoting the companies commitment to learning
52
1-53
Organizational Characteristics That
Influence Training
• Integration of business units
– Training likely includes rotating employees
between jobs in different businesses
• Global presence
– Training helps prepare employees for temporary
or long-term overseas assignments
• Business conditions
– Impact the ability to find employees with
necessary skills, and retain current employees
53
1-54
Organizational Characteristics That
Influence Training
• Other HRM practices
–Human resource management (HRM)
practices: Activities related to:
• Investments
• Staffing
• Performance management
• Training
• Compensation and benefits
54
1-55
Organizational Characteristics That
Influence Training
– Staffing strategy: Company's decisions
regarding:
• Where to find employees
• How to select them
• The desired mix of employee skills and statuses
55
1-56
Organizational Characteristics That
Influence Training
• Strategic value of Job and employee uniqueness
– Uniqueness: Extent to which employees are rare
and specialized and not highly available
– Strategic value
• Employee potential to improve company
effectiveness and efficiency
• Results in four types of employees
–Knowledge-based workers
–Job-based employees
–Contract employees
–Alliance/partnerships 56
1-57
Organizational Characteristics That
Influence Training
– Human resource planning
• Identification, analysis, forecasting, and planning of
changes to help meet changing business conditions
57
1-58
Organizational Characteristics That
Influence Training
• Extent of unionization
– Joint union-management programs help employees
prepare for new jobs
• Staff involvement in training and development
– Effectiveness of the training program depends on
the level of involvement of:
• Managers
• Employees
• Specialized development staff
58
1-59
Organizational Characteristics That
Influence Training (cont.)
• Staff involvement in training and development
– If line managers are aware of what development
activity can achieve, they will be more willing to
become involved in it.
• They will also become more involved in the
training process if they are rewarded for
participating.
– An emerging trend is that companies expect
employees to initiate the training process.
59
1-60
Training Needs in Different Strategies
• Internal growth strategy
– Focuses on new market and product
development, innovation, and joint ventures
• External growth strategy
– Emphasizes acquiring vendors and suppliers or
buying businesses to expand into new markets
• Disinvestment strategy: Emphasizes liquidation
and divestiture of businesses
60
1-61
Models of Organizing the Training
Department
• Centralized training
– Training and development resources, and
professionals are housed in one location
– Training investment and delivery methods
decisions are made from one department
– Advantages- Helps integrate programs for
developing leaders and managing talent
61
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Training and development

  • 2. • Definition of Training • Training Design Process • The Forces influencing working and learning • The Strategic Training and Development Process • Organizational Characteristics that Influence Training 2
  • 3. 1-3 Training? Training helps to bridge the gap Existing • Skills • Knowledge • Attitudes Required • Skills • Knowledge • Attitudes
  • 4. Training - a planned effort by a company to facilitate employees’ learning of job-related competencies. –Competencies include knowledge, skills or behavior, abilities (KSA) critical for successful job performance. What is Training? 4
  • 5. 1-5 Why is training important? • Increases employees’ knowledge • Provides the skills required to work with new technology. • Helps employees understand how to work effectively in teams. • Ensures that the company’s culture emphasises innovation, creativity and learning. • Ensures employment security by providing new ways for employees to contribute to the company. • Prepares employees to accept each other and work more effectively together, particularly in a diverse workforce. 5
  • 6. • To use training to gain a competitive advantage, a company should view training broadly as a way to create intellectual capital. • Intellectual capital is considered an asset, and can broadly be defined as the collection of all informational resources a company has at its disposal that can be used to drive profits, gain new customers, create new products, or otherwise improve the business Goal of training Intellectual capital includes customer capital, human capital, intellectual property, and structural capital. 6
  • 7. Training design process Is based on the principles of Instructional System Design (ISD).
  • 8. 8 1. Conducting Needs Assessment Organizational Analysis’ Personal Analysis Task Analysis 2. Ensuring Employees’ Readiness for Training Attitudes and Motivation Basic Skills 3. Creating a Learning Environment Learning Objectives Meaningful Material Practice Feedback Community of Learning Modeling Program Administration 4. Ensuring Transfer of Training Self-Management Peer and Manger Support 5. Developing an Evaluation Plan Identify Learning Outcomes Choose Evaluation Design Plan Cost-Benefit Analysis 6. Selecting Training Method Traditional E-Learning 7. Monitoring and Evaluating the Program Conduct Evaluation Make Changes to Improve the Program
  • 9. 1-9 Is sometimes referred to as the ADDIE model because it includes – Analysis – Design – Development – Implementation – Evaluation. 9
  • 11. 1-11 Organizational analysis • Organisational analysis involves considering the context in which training will occur. • Three factors need to be considered before choosing training as the solution to any pressure point: – Support of managers and peers for training activities – Company strategy – Training resources available. 11
  • 12. 1-12 Person analysis • Person analysis helps to identify who needs training. • Person analysis involves: –Determining whether performance deficiencies result from a lack of knowledge, skill or ability (a training issue) or from a motivational or work-design problem –Identifying who needs training –Determining employee’s readiness for training. 12
  • 13. 1-13 What do you want to do in the future? 13 Carry out a training needs analysis on yourself by... 1. ¡ Listing skills, qualities, experiences and qualifications you have that will support your future career 2. ¡ Identifying any skills, qualities, experiences and qualifications that would be desirable for your future career but you do not currently possess 3. ¡ Plan the training and development activities you could undertake to help you gain the necessary attributes
  • 14. 1-14 10-14 Person analysis • Factors that influence employee performance and learning: – Personal characteristics – Input – Output – Consequences – Feedback
  • 15. 1-15 Task analysis • Identifying the important tasks and knowledge, skills and behaviours that need to be emphasised in training, in order for employees to complete their tasks.
  • 16. 1-16 Readiness for training • Employees have the personal characteristics (ability, attitudes, beliefs, and motivation) necessary to learn program content and apply it on the job. • The work environment will facilitate learning and will not interfere with performance. 16
  • 17. 1-17 How can managers ensure employee readiness for training? • Ensure employees’ self-efficacy. • Understand the benefits of training. • Be aware of training needs, career interests and goals. • Understand work environment characteristics. • Ensure employees’ basic skills levels. • Also consider input, output, consequences and feedback. 17
  • 18. 1-18 Creating a learning environment • Employees need to: – Know why they should learn – Use their own experiences as a basis for learning – Have opportunities to practise – Receive feedback – Learn by observing and interacting with others – Undergo a well coordinated and arranged training program. 18
  • 19. 1-19 Selecting training methods Presentation methods Hands-on methods Group-building methods Classroom instruction On-the-job training (OJT) Adventure learning Distance learning Self-directed learning Team training Audiovisual techniques Apprenticeship Action learning Simulations Business games and case studies Behaviour modelling Interactive video E-learning 19
  • 20. 1-20 Training evaluation “ the process of collecting the outcomes needed to determine if training is effective”.
  • 21. 1-21 Reasons for evaluating training • To identify the program’s strengths and weaknesses. • To assess whether the content, organisation and administration of the program contribute to learning and the use of training content on the job. • To identify which trainees benefited most or least from the program. • To gather data to assist in marketing programs. • To determine the financial benefits and costs of the program. • To compare the costs and benefits of training versus non- training investments. • To compare the costs and benefits of different training programs, so as to choose the best program. 21
  • 22. 1-22 Outcomes Used in the Evaluation of Training Programs Affective Outcomes Results Return on Investment Cognitive Outcomes Skill-Based Outcomes
  • 23. 1-23 Outcomes Used in the Evaluation of Training Programs • Cognitive Outcomes • Determine the degree to which trainees are familiar with the principles, facts, techniques, procedures, or processes emphasized in the training program • Measure knowledge trainees learned in the program • Skill-Based Outcomes • Assess the level of technical or pshyco-motor skills • Include acquisition or learning of skills and use of skills on the job
  • 24. 1-24 Affective Outcomes • Include attitudes and motivation • Trainees’ perceptions of the program including the facilities, trainers, and content. • Results Determine the training program’s payoff for the company. • Return on Investment (ROI) Comparing the training’s monetary benefits with the cost of the training direct costs indirect costs benefits
  • 25. Forces Influencing Working and Learning 1. Economic cycles 2. Globalization 3. Increased value placed on intangible assets and human capital 4. Focus on link to business strategy 5. Changing demographics and diversity of the workforce 6. Talent management 7. Customer service and quality emphasis 8. New technology 9. High-performance work systems 25
  • 26. – Provide an opportunity for companies to take a closer look at training and development to identify those activities that are critical for supporting the business strategy as well as those mandated by law. 1. Economic cycles 26
  • 27. – Provide training and development opportunities for global employees. – Provide cross-cultural training to prepare employees and their families to understand the culture and norms of the country to which they are being relocated and assists in their return to their home country after the assignment. 2. Globalization 27
  • 28. 1-28 3. Increased Value Placed on Intangible Assets and Human Capital • Human capital: Refers to employees’ – Attributes, Life experiences, Knowledge, Inventiveness – Energy and enthusiasm • Intellectual capital: Codified knowledge that exists in a company • Social capital: Relationships in the company • Customer capital: Value of relationships with persons or other organizations 28
  • 29. Examples Of Intangible Assets Human Capital • Tacit knowledge • Education • Work-related know-how • Work-related competence Social Capital • Corporate culture • Management philosophy • Management practices • Informal networking systems • Coaching/mentoring relationships Customer Capital • Customer relationships • Brands • Customer loyalty • Distribution channels Intellectual Capital • Patents • Copyrights • Trade secrets • Intellectual property 29
  • 30. 1-30 4. Focus on link to business strategy 30
  • 31. 1-31 5. Changing Demographics and Diversity of the Work Force • Increase in racial and ethnic diversity – Ethnically and racially diverse labor force – Increased participation of minorities in the work force • Aging labor force – Increased work-force participation of individuals 55 years or greater • Generational differences
  • 32. • Talent management - attracting, retaining, developing, and motivating highly skilled employees and managers. • It is becoming increasingly more important because of: – occupational and job changes. – retirement of baby boomers. – skill requirements. – the need to develop leadership skills. 6. Talent management 32
  • 33. – Total Quality Management (TQM) - a companywide effort to continuously improve the ways people, machines, and systems accomplish work. • Core values of TQM – Methods and processes are designed to meet the needs of internal and external customers. – Every employee in the company receives training in quality, which is designed into a product or service to prevent errors from occurring rather than being detected and corrected. – The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. – Managers measure progress with feedback based on data. 7. Customer service and quality emphasis 33
  • 34. – Six Sigma process - a process of measuring, analyzing, improving, and then controlling processes once they have been brought within the narrow six sigma quality tolerances or standards. – Training can help companies meet the quality challenge by teaching employees statistical process control and engaging in “lean” processes. – Lean thinking - involves doing more with less effort, equipment, space, and time, but providing customers with what they need and want. – ISO 10015 - a quality management tool designed to ensure that training is linked to company needs and performance. 34
  • 35. – Is changing the delivery of training and makes training more realistic. – Allows training to occur at any time and any place. – Reduces travel costs. – Provides greater accessibility to training and consistent delivery. – Provides the ability to access experts and share learning with others. – Provides the possibility of creating a learning environment with many positive features such as feedback, self-pacing, and practice exercises. – Allows companies greater use of alternative work arrangements. 8. New technology 35
  • 36. – Work teams - involve employees with various skills who interact to assemble a product or provide a service. – Cross training - training employees in a wide range of skills so they can fill any of the roles needed to be performed on the team. – Virtual teams - teams that are separated by time, geographic distance, culture, and/or organizational boundaries and that rely almost exclusively on technology to interact and complete their projects. • Use of new technology and work designs are supported by human resource management practices. 9. High performance models of work systems 36
  • 37. Key trends in learning initiative investments: – Direct expenditures, as a percentage of payroll and learning hours, have remained stable over the last several years. – There is an increased demand for specialized learning that includes professional or industry- specific content. – The use of technology-based learning delivery has increased from 11 percent in 2001 to 33 percent in 2007. 37
  • 38. (cont.) – Self-paced online learning is the most frequently used type of technology-based learning. – Technology-based learning has helped improve learning efficiency, and has resulted in a larger employee–learning staff member ratio. – The percentage of services distributed by external providers dropped from 29 percent in 2004 to 25 percent in 2007. 38
  • 39. American Society of Training and Development Competency Model (2004) 39
  • 40. 1-40 40 Learning Strategist Business partner Project manage Professional Specialist WORKPLACE LEARNING & PERFORMANCE ROLES COACHING DELIVERING TRAINING DESIGNING LEARNING FACILITATING ORGANIZATIONAL CHANGE IMPROVING HUMAN PERFORMANCE MANAGING ORGANIZATIONAL KNOWLEDGE/SOCIAL LEARNING MANAGING THE LEARNING FUNCTION MEASURING & EVALUATING AREAS OF EXPERTISE INTERPERSONAL BUSINESS/MANAGEMENT PERSONAL >Building Trust >Analyzing Needs and Proposing Solutions >Demonstrating Adaptability >Communicating Effectively >Applying Business Acumen >Modeling Personal Development >Influencing Stakeholders >Driving Results >Leveraging Diversity >Planning and Implementing Assignments >Networking & Partnering >Thinking Strategically FOUNDATION COMPETENCIES ASTD COMPETENCY MODEL Delivering learning and performance competencies with global, business, ad technological perspectives.
  • 41. 1-41 The Strategic Training and Development Process Business Strategy Strategic Training & Development Initiatives Training & Development Activities Metrics That Show Value of Training • Diversify the Learning Portfolio • Improve Customer Service • Accelerate the Pace of Employee Learning • Capture and Share Knowledge • Use Web-Based Training • Make Development Planning Mandatory • Develop Web Sites for Knowledge Sharing • Increase Amount of Customer Service Training • Learning • Performance Improvement • Reduced Customer Complaints • Reduced Turnover • Employee Engagement 41
  • 42. 1-42 The Strategic Training and Development Process • Mission: Company's reason for existing • Vision: Is the picture of the future that the company wants to achieve • Values: What the company stands for • SWOT analysis – Internal analysis of strengths and weaknesses – External analysis of opportunities and threats • External analysis: Examining the operating environment to identify opportunities and threats 42
  • 43. 1-43 The Strategic Training and Development Process • Internal analysis –Identifies the company’s strength and weaknesses –Examines the available quantity and quality of financial, physical, and human capital • Strategic choice: The strategy believed to be the best alternative to achieve the company goals 43
  • 44. 1-44 Formulating the Business Strategy External Analysis Opportunities Threats Mission Why does the Company Exist? Goals Company Objectives Strategic Choice How will we Compete? Internal Analysis Strengths Weaknesses 44
  • 45. 1-45 The Strategic Training and Development Process • Strategic training and development initiatives: Learning-related actions that help to achieve business strategy 45
  • 46. 1-46 Strategic Training and Development Initiatives and Their Implications Strategic Training and Development Initiatives Diversify the Learning Portfolio Expand Who Is Trained Accelerate the Pace of Employee Learning Improve Customer Service Provide Development Opportunities and Communicate with Employees Capture and Share Knowledge Align Training and Development with the Company’s Direction Ensure that the Work Environment Supports Learning and Transfer of Training Implications • Use technology, such as the Internet, for training • Facilitate informal learning • Provide more personalized learning opportunities • Train customers, suppliers, and employees • Offer more learning opportunities to nonmanagerial employees • Quickly identify needs and provide a high-quality learning solution • Reduce the time to develop training programs • Facilitate access to learning resources on an as-needed basis • Ensure that employees have product and service knowledge • Ensure that employees have skills needed to interact with customers • Ensure that employees understand their roles and decision-making authority • Ensure that employees have opportunities to develop • Ensure that employees understand career opportunities and personal growth opportunities • Ensure that training and development addresses employees’ needs in current job as well as growth opportunities • Capture insight and information from knowledgeable employees • Organize and store information logically • Provide methods to make information available (e.g., resource guides, websites) • Identify needed knowledge, skills, abilities, or competencies • Ensure that current training and development programs support the company’s strategic needs • Remove constraints to learning, such as lack of time, resources, and equipment • Dedicate physical space to encourage teamwork, collaboration, creativity, and knowledge sharing • Ensure that employees understand the importance of learning • Ensure that managers and peers are supportive of training, development, and learning 46
  • 47. 1-47 Questions to Ask to Develop Strategic Training and Development Initiatives 1. What is the vision and mission of the company? Identify the strategic drivers of the business strategy. 2. What capabilities does the company need as a result of the business strategy and business environment challenges? 3. What types of training and development will best attract, retain, and develop the talent needed for success? 4. Which competencies are critical for company success and the business strategy? 5. Does the company have a plan for making the link between training and development and the business strategy understood by executives, managers, and employees or customers? 6. Will the senior management team publicly support and champion training and development? 7. Does the company provide opportunities for training and developing not only individuals but also teams? 47
  • 48. 1-48 The Strategic Training and Development Process • Metrics – Business-level outcomes chosen to measure the overall value of training or learning – Strategic business related measures not linked to one course or program • Balance scorecard – Means of measurement for: • Overall company performance • Performance of departments or functions 48
  • 49. 1-49 The Strategic Training and Development Process (cont.) –Considers four perspectives • Customer • Internal innovation • Learning • Financial 49
  • 51. 1-51 • Role of managers – Managers must: • Manage individual and performance • Develop employees and encourage continuous learning • Plan and allocate resources • Coordinate activities and interdependent team • Facilitate decision making • Create and maintain trust • Represent one’s work unit 51
  • 52. 1-52 Organizational Characteristics That Influence Training • Top management support – The CEO is responsible for • Setting a clear direction for learning • Providing encouragement, resources and commitment for strategic learning • Governing learning and reviewing objectives • Developing new learning programs for the company • Teaching program or providing online resources • Serving as role model for learning • Promoting the companies commitment to learning 52
  • 53. 1-53 Organizational Characteristics That Influence Training • Integration of business units – Training likely includes rotating employees between jobs in different businesses • Global presence – Training helps prepare employees for temporary or long-term overseas assignments • Business conditions – Impact the ability to find employees with necessary skills, and retain current employees 53
  • 54. 1-54 Organizational Characteristics That Influence Training • Other HRM practices –Human resource management (HRM) practices: Activities related to: • Investments • Staffing • Performance management • Training • Compensation and benefits 54
  • 55. 1-55 Organizational Characteristics That Influence Training – Staffing strategy: Company's decisions regarding: • Where to find employees • How to select them • The desired mix of employee skills and statuses 55
  • 56. 1-56 Organizational Characteristics That Influence Training • Strategic value of Job and employee uniqueness – Uniqueness: Extent to which employees are rare and specialized and not highly available – Strategic value • Employee potential to improve company effectiveness and efficiency • Results in four types of employees –Knowledge-based workers –Job-based employees –Contract employees –Alliance/partnerships 56
  • 57. 1-57 Organizational Characteristics That Influence Training – Human resource planning • Identification, analysis, forecasting, and planning of changes to help meet changing business conditions 57
  • 58. 1-58 Organizational Characteristics That Influence Training • Extent of unionization – Joint union-management programs help employees prepare for new jobs • Staff involvement in training and development – Effectiveness of the training program depends on the level of involvement of: • Managers • Employees • Specialized development staff 58
  • 59. 1-59 Organizational Characteristics That Influence Training (cont.) • Staff involvement in training and development – If line managers are aware of what development activity can achieve, they will be more willing to become involved in it. • They will also become more involved in the training process if they are rewarded for participating. – An emerging trend is that companies expect employees to initiate the training process. 59
  • 60. 1-60 Training Needs in Different Strategies • Internal growth strategy – Focuses on new market and product development, innovation, and joint ventures • External growth strategy – Emphasizes acquiring vendors and suppliers or buying businesses to expand into new markets • Disinvestment strategy: Emphasizes liquidation and divestiture of businesses 60
  • 61. 1-61 Models of Organizing the Training Department • Centralized training – Training and development resources, and professionals are housed in one location – Training investment and delivery methods decisions are made from one department – Advantages- Helps integrate programs for developing leaders and managing talent 61