Unformatted Attachment Preview
In 150-250 words, how has technology fostered new cost-effective virtual methods of training?
In your view, how must training programs continue to evolve in order to do more with
diminished financial resources?
Answer the questions directly and substantively in a minimum of 250 words. Utilize the required
reading material as well as one additional outside scholarly source to support your claims.
Training and Development
7
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Learning Outcomes
After reading this chapter, you should be able to do the following:
• Define the terms training and development.
• Describe a systematic HRM approach to training and development—including training needs assessment,
design, development, delivery, and evaluation.
• List and describe various forms of training.
• Explain decisions that are often necessary to create and administer a training program.
• Discuss opportunities, challenges, and recent trends in training and development.
167
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Introduction
Introduction
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 competitive 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.
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
job (London, 1989). Usually, however, development focuses on the future and prepares
employees to take on the duties and responsibilities of other positions (Fitzgerald, 1992).
Most of the concepts discussed in this chapter apply to both training and development, and
the two terms are used interchangeably in most sections. Training and development are distinguished from education, often received in schools, colleges, and universities. The emphasis
in education is on imparting knowledge, theory, and application. On the other hand, training
and development emphasize skill development and enhancement.
Opening Case Study
Training and Development at Aldi
Access the following link:
http://businesscasestudies.co.uk/aldi/business-expansionthrough-training-and-development/#axzz2cvNpvDxn
Similar to many retailers, Aldi follows an efficiency model. The primary characteristics of an
efficiency model are low wages, less-than-stellar working conditions, and many part-time
employees that are primarily treated as interchangeable parts. This is not the case at Aldi.
Instead, there is a strong emphasis on training and development.
(continued)
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Section 7.2
The Training Process
Opening Case Study
Training and Development at Aldi (continued)
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?
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 capital. Training helps organizations leverage knowledge, and it
therefore enables them to become more competitive. Even
organizations that have exceptional recruitment and selection 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 organizational goals and objectives. In other words, training should
be designed, implemented, and evaluated so that it contributes to measurable improvements in organizational core
competencies.
Training can also have a positive effect on an organization’s rate of employee retention. Workers are on the
lookout for employers who offer and promote training
and career advancement. Training and career development are valued more highly than high salaries, and
they contribute to job satisfaction. Therefore, t raining
plays a critical role in attracting and retaining talent
(Hequet, 1993).
Blend Images/Blend Images/Superstock
Training adds value to an
organization’s workforce, and
also has a positive effect on
retention rates.
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 training 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
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Section 7.2
The Training Process
training initiatives. Figure 7.1 summarizes the training process and relates it to the strategic HRM process.
Figure 7.1: Training and development
Job analysis
and job design
Attraction and
recruitment of
talent
Strategic HR
planning
Benefits and
benefit
administration
Selection and
job fit
Performance
appraisal/
management
Compensation
Training and
development
Training
needs
assessment
Training
evaluation
• reaction
• learning
• behavior
• results
Training
delivery
Training
design
Training
development
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Section 7.2
The Training Process
Training Needs Assessment
Training often entails substantial resource investments; an organization should therefore
assess its needs for training before it decides to provide any type of training to its employees. For many organizations, training is the first resort when any problems are detected.
However, training cannot resolve every organizational problem; training tends to be
most effective in resolving KSAO deficiencies. For example, compare the following three
scenarios:
1. An employee prefers to work on her own rather than be part of a team.
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 proceeds from a lack of trust, which is part of the organization’s or work unit’s culture. Alternatively, the reward system of the organization or work unit may be geared toward individual 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, introducing organizational development initiatives to increase trust, or creating team-based
rewards. Any of these interventions may be more effective than training in the first
scenario.
In the third scenario, training is also unlikely
to ameliorate the gossiping employee’s
counterproductive behavior. Excessive chatting is rarely a result of KSAO deficiencies;
negative attitudes such as lack of job satisfaction, work engagement, or organizational commitment are more usual sources
for this behavior. Training is unlikely to
resolve these underlying problems; motivational techniques are necessary instead. To
increase this employee’s motivation, it may
be necessary to redesign his job to make it
more challenging or to transfer him to a job
that better fits his abilities. Alternatively, the
reward system of the organization may be
promoting this employee’s counterproductive behavior—for example, if he is paid an
Blend Images/Blend Images/Superstock
Training needs are assessed after a
performance evaluation at the individual and
organizational levels.
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The Training Process
Section 7.2
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 possibly 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.
• Individual analysis compares employee performance against preestablished performance 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 evaluating 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 training 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
teaching them these basics becomes one of the training objectives. A training program’s objectives should be tailored in the design stage to fit employees’ readiness
and capacity to learn.
Another important factor in learner readiness is self-efficacy, which has been
defined as 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” (Stajkovic & Luthans, 1998, p. 66). Thus, self-efficacy can be critical in
learner motivation and willingness to learn. Indeed, learning self-efficacy is a mediator between learning goal orientation and performance (Potosky & R
amakrishna,
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The Training Process
Section 7.2
2002). Employees need to believe they are able to learn training materials effectively, and training design must include ways to increase trainees’ levels of confidence. The following methods are the most widely recognized ways to build selfefficacy (Bandura, 1997):
• 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 suitable when trial-and-error learning is prohibitively expensive or too risky—for
example, for pilots, surgeons, and construction workers. In these cases, experienced trainers can demonstrate or model the desired job behaviors. Observing a model successfully complete a task has been found to increase trainees’
confidence.
• Social persuasion involves receiving positive feedback and listening to motivational speakers. Although this method influences trainees less strongly than mastery 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 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 learning 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, if any, relationship
between learning style and training effectiveness or outcomes (Kappe et al., 2009;
Pashler et al., 2008; Santo, 2006).
3. Transfer of training is another factor of training design; it is the extent to which
capabilities learned in training are subsequently applied on the job. Accordingly,
training should be designed to help employees apply what they learn in training
sessions to real job situations. The need for transferrable capabilities should shape
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The Training Process
Section 7.2
not only the training objectives but also the training methods in order to maximize
learners’ readiness and motivation. For example, consider the effectiveness of the
following common alternatives for construction workers’ safety training:
• A lecture in a meeting room explaining safety regulations and expected behaviors
• A handbook with written safety guidelines and pictures depicting safe and hazardous behaviors
• An online step-by-step presentation showing workers behaving in safe and hazardous 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 facilitating training transfer.
Training Development
Training design helps an organization
answer the “what” questions about training—such as what are the training objectives, what are the trainees’ learning styles,
and what will enhance learners’ readiness 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
Photononstop/Photononstop/Superstock
numerous decisions. The most critiTransfer of training is the extent to which an
cal is whether the organization has the
employee’s training is used and applied to the job.
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 functions, such as training staff salaries and the administrative costs involved in internal development. However, training development, delivery, and evaluation are often outsourced if the
needed training will be long or complex, requires specialized expertise, or requires assessment through designated entities. For example, if professional certification is required, an
organization is likely to send its employees to specialized qualifying courses and have employees take the standard examinations required by the certifying body.
It is also often more cost effective to outsource highly technical training, particularly when
the number of employees who need training is too small to make it cost effective to develop
in house. On the other hand, when large organizations do have enough employees to make inhouse development cost effective, one effective way to develop and deliver training is through
corporate universities. Unlike typical universities’ degrees, degrees from corporate universities are not universally recognized outside the organization. However, corporate universities
resemble typical universities in hiring subject-matter experts to develop specialized trainings
and in having an administrative structure that is separate from the corporate organization.
Corporate universities’ goals are to promote a learning environment and organizational
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The Training Process
Section 7.2
culture that encourage ongoing learning and development at both the individual and organizational 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 advantage 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
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 outcomes. 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 training may occur through interacting with supervisors and coworkers, asking questions, having informal discussions, or independent reading. Informal training is often challenging to
evaluate because it has few if any set goals. However, managers and employees sometimes
set their own goals and objectives for informal training (Cofer, 2000), which can increase the
training’s effectiveness in meeting specific needs and objectives. For example, informal mentoring, where mentors and protégés select each other based on mutual interests, has been
shown to be more effective than formal mentoring (Ragins & Cotton, 1999).
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The Training Process
Section 7.2
On-the-Job Versus Off-the-Job Training
On-the-job training (OJT) is a common method in which organizations focus on the technical
aspects of the job. OJT is delivered where the job takes place. Throughout the training, trainees, also referred to as apprentices, are familiarized with the job and its tools, procedures,
and techniques. Trainees gain hands-on
exposure and they experience the work
they’ll do after the training period ends.
On-the-job training can be in the form of
demonstration, instruction, or coaching.
Other examples of OJT are job rotation,
shadowing a more experienced employee,
and assignment to a special project for the
purpose of learning. Most informal training 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.
Jeff Greenberg/age footstock/Superstock
Employees may also use their personal On-the-job training is one of the more common
time or employer approved vacation time to methods of training used by organizations.
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 training may also be necessary if space or resources are not available on site. For example,
many experiential training programs now have outdoors components that require rugged locations and special gear to provide opportunities for bonding, problem solving, and
collaboration.
Education Versus Professional Certification
Formal education opportunities may be offered to employees for career development purposes, and they can be provided either on or off site. Formal education can be in the form of
workshops, courses offered by consultants, or classes offered by universities. Some of the
programs offered at universities have residential requirements while others, such as this
course, are entirely online. Many organizations now provide their employees with full or
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Section 7.2
The Training Process
partial tuition reimbursement as an employment benefit. Larger organizations sometimes
have arrangements with local universities to provide on-site classes equivalent to classes
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 professional certificate means that an employee is well equipped with the knowledge, experience,
and skills necessary to perform job duties effectively. A professional certification can sometimes be one of the requirements for employment or practice. The links below provide examples 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 development opportunities, prepare employees for future responsibilities or positions, develop new
KSAOs in workers for their current roles, or help employees become more effective. Employers may also want to prepare new employees for their new roles or want to use training as
a remedial course of action to deal with performance deficiencies. However, employees may
also initiate or request training that is not required or recommended by the organization, or
they may even pursue training and development opportunities at their own time and expense.
The fact that employees move in and out of multiple careers during their lifetime has made
many of them come to realize that they need to take the initiative and generate for themselves
opportunities for training, development, and growth. Both employees and employers now
value and appreciate the desire and pursuit of lifelong learning in their current and potential
employees.
Self-Paced Versus Facilitated Training
Self-paced training gives learners access to the training material on demand, any time they
want, so that they can take a training course at their own pace. The primary advantage of selfpaced training is its flexibility. This flexibility gives trainees the ability to fit the training into
their busy schedules and allows them to take as much time as they need to master challenging
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The Training Process
Section 7.2
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 developed, 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 selfpaced 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.
• 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 Administration (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
other areas of interest. Health and fitness are becoming a common focus of optional training
in many organizations.
Face-to-Face Versus Online Training
Face-to-face training is conducted in classrooms. Employees and facilitators have to be physically present. Face-to-face training may be effective when interaction with instructors and
peers is conducive to higher-quality learning. However, it may not be as effective for a large
number of trainees. Online training, also referred to as e-learning, can be accessed anywhere,
anytime, using the Internet. Some online training is conducted using an organizational intranet.
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The Training Process
Section 7.2
It has long been believed that in-class training is more interactive than online training. However, research shows that this may not be the case (Maki, Maki, Patterson, & Whittaker, 2000).
Programs such as Blackboard and WebCT have enabled trainees to have virtual chat as well as
electronic file exchange, which make online training interactive. A special type of e-learning
is virtual reality, which also gives trainees the opportunity to see and examine objects in a
three-dimensional perspective. According to ATD, young 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 synchronous (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 technical 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 decisions are made at the training
evaluation phase:
• What to evaluate
• When and who to evaluate
To determine what to evaluate, the most widely recognized training evaluation framework
is Kirkpatrick’s model (Kirkpatrick & Kirkpatrick, 2009), which describes four levels of
assessment:
1.
2.
3.
4.
Reaction
Learning
Behavior
Results
At the first level, trainee reactions to the training are measured, typically through surveys
administered immediately after training is completed. Basic satisfaction with various aspects
of the training are emphasized at this level, such as the training venue, the instructor’s style,
and the training materials.
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Section 7.2
The Training Process
While trainees’ perceptions and feelings about the training are important, it is even more
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 training 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 scheduling of sales calls, or increased courtesy
toward clients.
Monkeybusinessimages/iStock/Thinkstock
In Kirkpatrick’s model of training evaluation,
an employee may be asked to analyze a
hypothetical problem that will help assess what
he or she has learned during training.
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
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 quantify the benefits of training and development often leads to significant cuts in budget allocations 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 organizational 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
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Forms of Training and Development
Section 7.3
it is possible that employees’ performances would have met the same standards without training; HR departments may therefore not be able to use the post-measurement
approach to interpret results accurately or attribute positive results directly to the training. Just because a group of trainees are assessed to be superior performers after training does not mean that the training is the reason for their superior performance. They
could have been higher performers to begin with due to effective employee selection and
placement.
The pre-/post-measurement method tests trainees both before and after the training. If they
measure higher on the desired outcomes after the training than they did before the training, it can be argued that the difference in results can be attributed directly to the training.
However, like post-measurement, this method does not prove that training is the source
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. Alternative 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-/postmeasurement 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 training 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 organization can then randomly assign the workforce into four groups: a group that receives
training, a group that receives the modified reward program, a group whose jobs would be
redesigned, and a control group that receives an unrelated intervention. Each of the four
groups should be assessed before and after their designated interventions, and the group
that shows the most improvement would indicate the superiority of that group’s respective intervention.
7.3 Forms of Training and Development
Training and development can take numerous forms to serve different audiences and
functions within the organization. Organizations have expanded their use of training and
development beyond traditional training methods, including more creative approaches or
more ambitious training objectives, such as meeting employees’ needs for personal and professional growth. This section provides a glimpse of some of the commonly used forms of
training and development.
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Forms of Training and Development
Section 7.3
Orientation and Onboarding
Orientation, also known as onboarding, is specifically designed for new employees. This
process familiarizes new employees with the environment by introducing them to their
jobs; their managers; their coworkers; and the organization’s structure, culture, and processes. Orientation and onboarding can also help new employees reach the desired performance levels sooner by accelerating their
development and moving them faster
along the learning curve. An effective orientation can also help the organization
build a positive image among new
employees. Along with operating managers and supervisors, HR professionals are
often the organization members who
carry out orientations, although many
organizations today have formal orientation 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
George Doyle/Stockbyte/Thinkstock
members of the nursing team at Yale- Orientation helps new employees reach desired
New Haven Hospital. This program spans performance levels sooner and gives them a
12 weeks to 6 months, depending on spe- better idea of what the organization expects of
cialization and prior experience.
them.
Web Link
Yale-New Haven Hospital Orientation Program for Nurses
http://careers.ynhh.org/career-opportunities/nursing-staff/nursing-programs.aspx
Technical and Nontechnical Training
Technical training is job-related, and it usually focuses on the technicalities of the job (or
hard skills), whereas nontechnical training is not job-related (and focuses on soft skills). Its
purpose is to enhance employees’ skills in other areas, such as team-building, organizational,
management, problem-solving, decision-making, or communication skills.
Nontechnical training can also be designed to educate employees about other cultures. Crosscultural training can help global firms send their employees on international assignments,
and it is critical to global strategic success. To avoid culture shock, not only employees but
also their families must grow familiar with cultural differences; training can help people
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Forms of Training and Development
Section 7.3
adjust to a culture that differs from their own (Yamazaki & Hayes, 2004). The same holds true
for foreign employees who will be transferred to the United States.
Nontechnical training can help expand employees’ horizons and prepare them for challenges in current roles as well as future roles beyond their immediate technical job responsibilities. 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 development can also help employees develop basic skills such as reading, writing, and arithmetic. 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 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 evaluated 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 employees 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, provides them with resources, or offers a combination 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 effective as executive coaching to develop the higherlevel skills necessary for these strategic roles. For
Marcin Balcerzak/iStockphoto/Thinkstock
coaching to be effective, it is best to identify areas
that need improvement and then set goals for this Executive coaching is an effective
improvement (Smither, London, Flautt, Vargas, & training and development approach for
senior management.
Kucine, 2003).
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Forms of Training and Development
Section 7.3
Job Rotation and Temporary Transfers
Chapter 3 offered job rotation—that is, assigning employees to different jobs—as a way to
design jobs with a greater variety of activities and less boredom. Job rotation is also one of
the techniques used for employee training and development. Through it, an employee is able
to work in different functional areas on different assignments within an organization; the
employee is therefore given the chance to experience other parts of the organization. Job
rotation helps employees extend their experience, widen their understanding, and enhance
their skills (Campion, Cheraskin, & Stevens, 1994). Organizations may also rotate employees
through different job assignments in different countries (Weinstein, 2009).
Temporary transfers are similar to job rotation in that an employee gets assigned to a position in another part of the organization. However, temporary transfers are more likely to be
one-time occurrences, while rotations usually include a predetermined series of job changes.
A temporary transfer may be lateral, which means that the employee will have the same level
of responsibility. It also can be upward, in the form of a temporary increase in responsibilities 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 economic, 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 premature return to the home country, which amount to a loss in the organization’s investment in
training. These losses could have been avoided had the organization hired a qualified local
resident for the foreign operation instead. Living abroad may also cause employees to miss
important and noteworthy events at home, both personally and professionally.
Leadership Development and Management Training
Leadership development can be defined as “expanding the collective capacities of organizational members to engage effectively in leadership roles and processes” (Day, 2000,
p. 582). The need for leadership development has increased along with globalization and
competitiveness. It is therefore crucial to develop the knowledge and skills of those who are
in managerial positions to be able to contribute to future organizational performance. The
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Forms of Training and Development
Section 7.3
leadership development process is also integral to succession planning and career planning.
Organizations can effectively prepare a cadre of future leaders by assessing the needs for filling future management positions, evaluating potential candidates’ current performances, and
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 organization 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 training. 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 program, 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 accelerated career path to a
senior management position after they complete the program successfully.
Web Link
Unilever’s Future Leaders Program
http://www.unileverme.com/careers-jobs/graduates/uflp/index.aspx
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
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Section 7.4
Linking Training and Development to the HRM Process
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 competencies and performance. This
improvement can be realized by viewing training needs in association with strategic organizational plans and prioritizing them accordingly (Clarke, 2003; Reed & Vakola, 2006). HR
planning, job analysis and design, recruitment, selection, and performance appraisal should
inform and be informed by the organization’s goals and strategies. Training needs assessment, design, development, delivery, and evaluation should likewise inform and be informed
by the other strategic HR processes—adding value to the organization’s efficiency, effectiveness, and competitiveness.
A Moment in the Life of an HR Manager
Who Should You Send to Training?
Andrew is a sales manager at a department store called Living in Style, Inc. This morning, he
received the following memo from the Claudia Moore, the training manager at the head office.
Memo for Living in Style, Inc.
Andrew is excited about this new training program. However, he has several concerns:
1. Andrew does not recall that anyone consulted him on what training his sales force
needed. So he is unsure if the training will be relevant for their specific needs, especially
since his store is in a relatively small town where he and his staff know most of the customers by name.
2. Andrew also believes that he has some of the best and most dedicated sales representatives 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 management 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 promoting credit and layaway sales instead of emphasizing loyalty programs and other ways to
establish stronger and longer-lasting relationships with customers.
(continued)
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Section 7.4
Linking Training and Development to the HRM Process
A Moment in the Life of an HR Manager
Who Should You Send to Training? (continued)
4. Another of Andrew’s concerns is the moral dilemma of promoting more spending in
general when the economy is in recession. He sees the potential for this encouragement
to have an adverse impact on customers’ financial and psychological well-being. He
sees it as contradictory and hypocritical to train salespeople to offer superior customer
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 requirement. 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 productivity 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 outselling 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
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 highest 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 something they don’t really need.
+ Advantages of sending Doug: Doug will never fall for the newest trends and management fads. He will question everything, which may push the company to reevaluate 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 overdue 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
working for competitors in the past. But she has only six months of experience with Living in Style. Her background and KSAOs are impressive, but she has a difficult personality, tends to be critical of everything and everyone, and tends to create conflicts with
coworkers and customers. She has said many times that she feels overqualified for her
job and wants opportunities for development and career advancement.
(continued)
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Opportunities, Challenges, and Recent Trends in Training and Development
Section 7.5
A Moment in the Life of an HR Manager
Who Should You Send to Training? (continued)
+ Advantages of sending Emma: Emma will perceive this training as an opportunity for
development and career advancement. Sending her to the training will also give the
store a break from her toxic attitudes. And who knows—maybe her attitudes will
change, or she’ll get noticed at the head office and they’ll decide to keep her at a position that requires her level of assertiveness.
- Disadvantages of sending Emma: Emma may have conflicts with others at the training, which could reflect poorly on the store’s image at the head office and compromise 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.
3. Integrate your answers into a proposed training process that follows the structure
adopted in this chapter. Start with training needs assessment, going on to the design,
development, and delivery, and finally the evaluation. How can each stage be improved
to ensure that the most effective training program is offered to the sales representatives
who are most likely to benefit from it?
7.5 Opportunities, Challenges, and Recent Trends
in Training and Development
Training and development are costly and time consuming. Moreover, the fast rate of change in
the business environment requires continuous updating of training topics and technologies.
However, when utilized strategically, training and development can offer numerous opportunities, not only in terms of disseminating knowledge and polishing employee skills, but also
in terms of increasing their motivation and loyalty to the organization.
Economic Considerations: The Increasing Costs of Training
The costs of training and development have been increasing. As a result, many organizations
have cut their training budgets, especially during the recent economic slowdown. Costs are
also one of the reasons why the outsourcing of training has not increased significantly (Van
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Opportunities, Challenges, and Recent Trends in Training and Development
Section 7.5
Buren, 2005). While many training programs may be more effectively administered externally through experienced third-party trainers or specialized entities, the costs of doing so are
becoming prohibitive. For example, many organizations have significantly reduced or eliminated their tuition reimbursement programs, although these programs have been shown to
reduce turnover and facilitate talent retention, provided that they are accompanied with promotions 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. Organizations 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-thejob training. However, this opportunity comes at the sometimes high cost of the reduced productivity 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 training options.
Technological Developments: Online and Open-Source Training
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 superior, to face-to-face learning (Maki et
Fuse/Thinkstock
al., 2000; Redpath, 2012). For example,
IBM saved $200 million in 1999 and Online training has changed the way organizations
provided five times the learning at one- design, develop, deliver, and evaluate training.
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
base. For example, visit the web site below to access hundreds of educational videos on
numerous topics. Several colleges and universities are also now exploring the full reliance
on open sourcing in teaching some of their courses to avoid costly textbooks and database
subscriptions.
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Opportunities, Challenges, and Recent Trends in Training and Development
Section 7.5
Web Link
Khan Academy
http://www.khanacademy.org/
Although online training has many advantages, it is also necessary to consider some disadvantages. For example, learners may be tempted to complete the online training quickly and
therefore may not be able to retain or apply what they learn. Furthermore, not all topics can
be taught effectively online. Finally, online training may be easier for competitors to copy or
imitate than face-to-face training, which may cause losses in intellectual property and the
intended human-based competitive edge that training initiatives aim to build.
Training and Development for Succession Planning
As discussed in Chapter 2, the aging workforce makes training for succession planning a high
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, management, 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 competitiveness 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 usually, therefore, has a positive effect on employee motivation, performance quality, productivity, and engagement. In addition, creating an environment that promotes training and offers
career development opportunities will likely boost employee motivation, morale, and retention (Huselid, 1995).
Diversity Training
Given the increased diversity in the workplace, the importance of diversity management cannot be stressed enough. The purpose of diversity training is to create cross-cultural awareness
among employees so that they can avoid discriminatory or harassing behaviors that intimidate
others, allowing employees to work together in a more peaceful and harmonious way. Accordingly, diversity training should help create an environment that promotes cultural respect and
acceptance. Such an environment can enable employees to be more productive and employers
to face fewer lawsuits. Most importantly, a respectful environment can allow an organization to
capitalize on the contributions and creativity of a diverse workforce. Unfortunately, most diversity training programs have been criticized for being ineffective in changing employee attitudes
and value systems regarding diversity (Hemphill & Haines, 1997).
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Section 7.5
Opportunities, Challenges, and Recent Trends in Training and Development
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 promotes 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
that most forms of safety training have a positive impact, but that the most effective methods
to reduce accidents, illnesses, and injuries are trainings that involve either interaction, handson practice, or behavioral modeling (Burke et al., 2006).
Eye on the Goal
Make or Buy? The Payoff From Training Current Employees
Many employers worry that if they provide their employees with intensive, high-quality training, 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 development 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). Organizations 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 organization, and society at large. For
example, safety training can help prevent worksite accidents, which can compromise employees’ 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)
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Opportunities, Challenges, and Recent Trends in Training and Development
Section 7.5
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).
The HR Manager’s Bookshelf
Evidence-Based Training Methods, by Ruth Colvin Clark
https://www.td.org/Publications/Books/Evidence-Based-Training-Methods-2
Evidence-based management was introduced in Chapter 1. This book, published by the Association for Talent Development (ATD), applies evidence-based management specifically to
training. Ruth Clark discusses, analyzes, and evaluates various training methods, debunks
common myths and fads about training, and provides practical guidelines for designing and
delivering evidence-based training.
Best Companies to Work For
#42: Stryker
http://fortune.com/best-companies/2014/stryker-42/
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.
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Summary & Resources
Summary & Resources
Key Points
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•
•
•
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Training and development can lead to higher employee productivity, talent retention, and the creation of a sustainable human-based competitive advantage. These
benefits often outweigh the costs of training and justify training investments, even
during difficult economic times.
The stages of the training process include training needs assessment, design, development, delivery, and evaluation.
In order for training to contribute to an organization’s strategic goals, it should be
based on those goals and should be evaluated against those goals. Trainee reactions,
learning, behavioral change, and individual and organizational performance outcomes should all be considered.
Training should also be linked to the various components of the strategic HR process, 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 relative efficacy of each training method depends on the topic at hand, the trainee,
the trainer, and the organization’s culture.
Key Terms
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.
Kirkpatrick’s model The most recognized
model of training evaluation; it describes
four levels of evaluation: reaction, learning,
behavior, and results.
leadership development Expanding the
collective capacities of organizational members to engage effectively in leadership roles
and processes.
development A process which prepares
employees to take on the duties and responsibilities of other positions that they are to
assume in the future.
learner readiness The capacity, motivation, and willingness to learn.
Hawthorne effect Employees’ tendency
to perform better when they believe there
is any form of intervention taking place,
regardless of the effectiveness of the
intervention.
mentoring A developmental approach that
helps an employee, also called the mentee or protégé, to develop his or her skills
through interacting with a more experienced
coworker or supervisor, called the mentor.
Felder-Silverman model One of the
recognized models of learning styles; the
model classifies learners as active/reflective, sensing/intuitive, visual/verbal, and/or
sequential/global.
learning styles The ways in which people
learn and a factor to be addressed during the
training design stage. As people learn in different ways, there is no single learning style
that works best for everyone.
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Summary & Resources
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 jobrelated duties more effectively and responsibly than they would without the training.
training delivery The fourth stage of the
training process, which focuses on the methods and logistics of training.
training development The third stage of
the training process, in which the content
and resources that best meet the goals and
objectives of the training are determined
and addressed.
training evaluation The last stage
of the training process, in which organizations assess whether the training has
met the needs and objectives for which it
was designed.
training needs assessment The first stage
of the training process, in which performance is evaluated at the organizational and
individual levels, including a search for gaps
between the current and the required competencies that might hinder the progress of
the organization.
transfer of training The extent to which
training is subsequently utilized and applied
on the job.
training design The second stage of the
training process, in which specific objectives
are set for the training based on the identified training needs.
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 differences in ability or actual training effectiveness, what factors 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?
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