CHAPTER 1:__Introduction to Employee Training and Development by HC120911205018


									Chapter 01 - Introduction to Employee Training and Development

                      CHAPTER 1

This chapter is a basic introductory chapter explaining many of the terms used in the area of
training and development. The chapter begins with a discussion of how four companies, Boston
Pizza International, Seattle City Light, Starbucks, and US Airways used training to improve their
competitive advantage in the marketplace. The terms training and development are defined, and
the various forces such as globalization, workforce demographic changes, new technologies, the
changing roles of leadership, rapid development of knowledge, and development of e-commerce
are explained. The importance of training and development in today’s organizations, and today’s
global market is discussed, including the immense amount of money invested in training by U.S.
companies. A basic Instructional System Design model (ISD) or the ADDIE model is
introduced, and essential roles and competencies of trainer professionals are identified. Related
training and development Web sites, internet, and e-commerce examples are discussed at the end
of the chapter.


After discussing this chapter, the students should be able to:

1. Discuss the forces influencing the workplace and learning, and explain how training can help
   companies deal with these forces.
2. Discuss various aspects of the training design process.
3. Describe the amount and types of training occurring in U.S. companies.
4. Describe how much money is spent on training in U.S. companies and how the money is
5. Discuss the key roles for training professionals.
6. Identify appropriate resources (e.g., journals, Web sites) for learning about training research
   and practice.

I. Introduction

    A. Competitiveness is the company’s ability to maintain and gain market share in an
       industry. (Or competitive advantage)
    B. Human resource management refers to the policies, practices, and systems that
       influence employees’ behavior, attitudes, and performance.
    C. Stakeholders refer to shareholders, the community, customers, employees, and all the
       other parties that have an interest in seeing that the company succeeds.

II. What is Training?

Chapter 01 - Introduction to Employee Training and Development

    A. Training is a planned effort by a company to facilitate employees’ learning of job-related
       competencies, including knowledge, skills, or behaviors that are critical for successful job
       performance and application to their day-to-day activities.
       1. To use training to gain competitive advantage, a company should view training
           broadly as a way to create intellectual capital.
    B. High-leverage training is linked to strategic business goals and objectives, uses an
       instructional design process to ensure that training is effective, and uses benchmarks for
       comparative purposes.
    C. Continuous learning requires employees to understand the entire work system,
        including the relationships among their jobs, their work units, and the company.
       1. Employees are expected to acquire new skills and knowledge, apply them on the job,
           and share this information with other employees.
       2. Techniques such as informational maps can be used to show employees where
           knowledge lies within the company.
    D. Companies have lost money on training because:
       1. It is poorly designed.
       2. It is not linked to a performance problem or business strategy.
       3. Its outcomes have not been properly evaluated.
    E. Today there is a greater emphasis on:
       1. Providing educational opportunities for all employees.
       2. Performance improvement as an ongoing process rather than a one-time training
       3. Demonstrating benefits of training to the employees.
       4. Learning as a lifelong event in which senior management, trainer managers, and
           employees have ownership.
       5. Training being used to help attain strategic business objectives.

III. Designing Effective Training

    A. The training design process (see Figure 1-1 p. 7) refers to a systematic approach for
       developing training programs.
       1. It is based on principles of Instructional System Design, which refers to a process
          for designing and developing training programs.
       2. The training design process sometimes is referred to as the ADDIE model because it
          includes analysis, design, development, implementation, and evaluation.
       3. Regardless of the specific ISD approach used, these steps share the following
          a. Training design is effective only if it helps employees reach instructional or
               training goals and objectives.
          b. Measurable learning objectives should be identified before the training program
          c. Evaluation plays an important part in planning and choosing a training method,
               monitoring the training program, and suggesting changes to the training design
       4. The ISD model is flawed for the following reasons:

Chapter 01 - Introduction to Employee Training and Development

           a. In organizations, the training design process rarely follows the neat, orderly, step
              by- step approach of activities shown in Figure 1.1.
           b. In trying to standardize their own ISD method used in the training function, some
              organizations require trainers to provide detailed documents of each activity
              found in the model.
           c. The ISD implies an end point: evaluation.
        5. The training design process should be systematic, yet flexible enough to adapt to
           changing business needs.

IV. The Forces Influencing Working and Learning

    Table 1.1 on page 10 lists the forces that influence working and learning.
    A. Economic cycles
       1. The poor economy means more companies are downsizing their work force, delaying
           plans for new operations and growth, and revisiting training and development and
           human resource budgets to cut unnecessary programs and costs.
       2. Economic crisis 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.
    B. Globalization
       1. Companies provide cross-cultural training to their global employees and their family
           which prepares them 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
       2. Some companies develop a leadership team to learn about the needs and the culture of
           the foreign countries while at the same time providing valuable community service.
       3. Few companies provide extensive coaching and assessment of managerial potential
           and provide regular feedback to keep employees focused on the things they need to
           do to reach their career goals.
       4. Globalization also means that U.S. companies may move jobs overseas; offshoring
           refers to the process of moving jobs from the United States to other locations in the
    C. Increased value placed on intangible assets and human capital
       Table 1.2 on page 14 provides examples of intangible assets.
       1. Human capital refers to the sum of the attributes, life experiences, knowledge,
           inventiveness, energy, and enthusiasm that the company’s employees invest in their
       2. Intellectual capital refers to the codified knowledge that exists in a company.
       3. Social capital refers to relationships in the company.
       4. Customer capital refers to the value of relationships with persons or other
           organizations outside the company for accomplishing the goals of the company.
       5. The value of intangible assets and human capital has three important implications:
           a. A focus on knowledge worker.
           b. Employee engagement.
           c. Change and continuous learning.

Chapter 01 - Introduction to Employee Training and Development

        6. Knowledge workers are employees who contribute to the company not through
            manual labor but through what they know, perhaps about customers or a specialized
            body of knowledge.
        7. Employee engagement refers to the degree to which employees are fully involved in
            their work and the strength of their commitment to their job and the company.
        8. Change refers to the adoption of a new idea or behavior by a company.
        9. A learning organization embraces a culture of lifelong learning, enabling all
            employees to continually acquire and share knowledge.
    D. Focus on link to business strategy
        1. Managers are beginning to see a more important role for training and development as
            a means to support a company’s business strategy.
    E. Changing demographics and diversity of the work force
        1. Increase in ethnic and racial diversity.
        2. Aging work force.
        Table 1.3 on page 19 illustrates how managing cultural diversity can provide competitive
        3. To successfully manage a diverse work force, managers and employees must be
            trained in a new set of skills, including:
            a. Communicating effectively with employees from a wide variety of backgrounds.
            b. Coaching, training, and developing employees of different ages, educational
                backgrounds, ethnicities, physical abilities, and races.
            c. Providing performance feedback that is free of values and stereotypes based on
                gender, ethnicity, or physical handicap.
            d. Training managers to recognize and respond to generational differences.
            e. Creating a work environment that allows employees of all backgrounds to be
                creative and innovative.
     F. Talent management refers to attracting, retaining, developing, and motivating highly
        skilled employees and managers. It is becoming increasingly important because of:
        1. Occupational and job changes.
        2. Retirement of baby boomers.
        3. Skill requirements.
        4. Need for developing leadership skills.
    G. Customer service and quality emphasis
        1. Total Quality Management (TQM) is a companywide effort to continuously
            improve the ways people, machines, and systems accomplish work; works on core
        2. The Malcolm Baldrige National Quality Award and ISO 9000:2000 quality
            standards were established to emphasize and recognize high quality and to publicize
            strategies and expectations for quality. Table 1.5 lists the categories and point values
            for the Malcolm Baldrige National Quality Award examination.
        3. The ISO 9000:2000 Standards were developed by the International Organization for
            Standardization. These standards have been adopted as the national quality standards
            in nearly 100 countries. These are used in manufacturing, processing, servicing,
            printing, forestry, electronics, steel, computing, legal services, and financial services.

Chapter 01 - Introduction to Employee Training and Development

        4. Many companies are also using the Six Sigma process for monitoring and improving
           quality. The Six Sigma process refers to a process of measuring, analyzing,
           improving, and then controlling processes once they have been brought within the
           narrow Six Sigma quality tolerances or standards. By incorporating the Six Sigma
           standards, companies will be producing less than 4 defects per million parts produced.
           a. Training is an important component of the process.
        5. Lean thinking involves doing more with less effort, equipment, space, and time, but
           providing customers with what they need and want.
        6. ISO 10015 is a quality management tool designed to ensure that training is linked to
           company needs and performance.

    H. New technology
       1. The Internet is a global collection of computer networks that allow users to exchange
          data and information.
       2. The Internet has created a new business model—e-commerce, in which business
          transactions and relationships can be conducted electronically.
       3. Advances in sophisticated technology along with reduced costs for the technology are
          changing the delivery of training, making training more realistic, and giving
          employees the opportunity to choose where and when they will work.
       4. Technology also allows companies greater use of alternative work arrangements.
          a. A key training issue with alternative work arrangements is to prepare managers
              and employees to coordinate their efforts so such work arrangements do not
              interfere with customer service or product quality.

    I. High-performance model of work systems
       1. Work teams involve employees with various skills who interact to assemble a
          product or provide a service.
       2. Cross-training refers to training employees in a wide range of skills so they can fill
          any of the roles needed to be performed on the team.
       3. Use of new technology and work designs needs to be supported by specific human
          resource management practices.
       4. Virtual teams refer to teams that are separated by time, geographic distance, culture,
          and/or organizational boundaries and that rely almost exclusively on technology (e-
          mail, Internet, video conferencing) to interact and complete their projects.

V. Snapshot of Training Practices
   A. Training facts and figures - Table 1.6 on page 35 lists questions and answers about
      training practices and figure 1.3 on page 36 illustrates the different types of training
      provided by companies.
   B. Key trends in investments in learning initiatives:
      1. Direct expenditures, as a percentage of payroll and learning hours, have remained
          stable over the last several years.
      2. There is an increased demand for specialized learning that includes professional or
          industry-specific content.
      3. The use of technology-based learning delivery has increased from 11 percent in 2001
          to 33 percent in 2007.

Chapter 01 - Introduction to Employee Training and Development

         4. Self-paced online learning is the most frequently used type of technology-based
         5. Technology-based learning has helped improve learning efficiency, as shown by
             increases in the reuse ration since 2003.
         6. Technology-based learning has resulted in a larger employee–learning staff member
         7. The percentage of services distributed by external providers (e.g., consultants,
             workshops, training programs) dropped from 29 percent in 2004 to 25 percent in
    C.   Training investment leaders
         1. Higher investment in training by companies in the United States is related to use of
             innovative training practices and high-performance work practices such as teams,
             employee stock ownership plans, incentive compensation systems (profit sharing),
             individual development plans, and employee involvement in business decisions.
         2. The BEST Award winners were companies that had made a significant investment in
             training, determined by ranking all companies that participated in the Benchmarking
             Service on four categories: training investment, total training hours per employee,
             percentage of employees eligible for training who received it, and percentage of
             training time delivered through learning technologies.
             Table 1.7 shows other characterstics of BEST Award-winning companies.
    D.   Roles, competencies and positions of training professionals - Figure 1.4 on page 39
         shows the ASTD competency model, which describes what it takes for an individual to
         be successful in the training and development field.
    E.    Who provides training?
         1. In most companies training and development activities are provided by trainers,
             managers, in-house consultants, and employee experts.
         2. Outsourcing means that training and development activities are provided by
             individuals outside the company.
    F.   Who is in charge of training?
         1. Training and development can be the responsibility of professionals in human
             resources, human resource development, or organizational development.
         2. Human resource development refers to the integrated use of training and
             development, organizational development, and career development to improve
             individual, group, and organizational effectiveness.
             a. The reporting relationship between human resource management and the training
                 function varies across companies.
    G.   Preparing to work in training
         1. To be a successful training professional requires staying up-to-date on current
             research and training practices.
         2. The primary professional organizations for persons interested in training and
             development include:
             a. American Society for Training and Development (ASTD)
             b. Academy of Human Resource Development (AHRD)
             c. Society for Human Resource Management (SHRM)
             d. Society for Industrial and Organizational Psychology (SIOP)
             e. Academy of Management (AOM)

Chapter 01 - Introduction to Employee Training and Development

            f. International Society for Performance Improvement (ISPI)

    Chapter Summary

    The chapter explains some real case scenarios where training has contributed to companies’
    competitiveness. It explains what training is and how an effective training program can be
    designed. It further discusses the factors which has an influence on working and learning.
    The chapter concludes by providing a snapshot of the training practices, in which the
    competency model is discussed. At the end, a list of key words and discussion questions are
    provided along with application assignments and a case study

    Discussion Questions

    1. Describe the forces affecting the work place and learning. How can training help
       companies deal with these forces?

        Economic cycles, globalization, customer service and quality emphasis, talent
        management, new technology, increased value placed on intangible assets and human
        capital, focus on link to business strategy, changing demographics and diversity of the
        work force, high-performance work systems are the forces affecting the work place and
        learning. Training can improve professional conduct, improve job performance by
        teaching new techniques and skills, and increase a company’s productivity and customer
        satisfaction. (p. 10-34)

    2. What steps are included in the training design model? What step do you think is the most
       important? Why?

        Step 1 is to conduct a needs assessment, which is necessary to identify if training is
        needed. Step 2 is to ensure that employees have the motivational and basic skills
        necessary to master the training content. Step 3 is to create a learning environment that
        have features necessary for learning to occur. Step 4 is to ensure that trainees apply the
        training content to their jobs. Step 5 is to develop an evaluation plan. Developing an
        evaluation plan includes identifying what types of outcomes training is expected to
        influence, choosing an evaluation design that allows you to determine the influence
        of training on these outcomes, and planning how to demonstrate how training affects the
        “bottom line”. Step 6 is to choose the training method based on the learning objectives
        and learning environment. Step 7 is to evaluate the program and make changes in it or
        revisit any of the earlier steps in the process to improve the program so that learning,
        behavior, change and the other learning objectives are obtained.
        I believe the most important step is conducting a needs assessment. If the needs
        assessment shows that there would be no improvement in production or customer service
        etc. there is no reason to implement a training program. (p. 7-8)

Chapter 01 - Introduction to Employee Training and Development

    3. What are intangible assets? How do they relate to training and development?
       Intangible assets consist of human capital, customer capital, social capital, and
       intellectual capital. Intangible assets have been shown to be responsible for a company’s
       competitive advantage. Training and development can help a company’s competitiveness
       by directly increasing the company’s value through contributing to intangible assets. (p.

    4. How is Starbucks using training to benefit the company during difficult economic times?

        Starbucks believes that the key to company success is its employees or partners. Training
        is integral to Starbucks's strategy for successfully competing in a weak economy
        in which customers are spending less. Store managers serve as trainers. The training
        focuses on coffee knowledge and how to create a positive experience for customers.
        Training specialists from headquarters work with store managers to ensure that training is
        consistent across all stores. The training courses are also frequently updated. Managers
        and assistant store managers take a 10-week retail management training course. When
        Starbucks enters a new international market, partners are brought to Seattle for 6 to 12
        weeks of training and then sent to other locations to get store experience.
         (p. 3)

    5. Training Professionals continue to debate whether the ISD model is flawed. Some argue
       that ISD should be treated as a project management approach rather than a step- by- step
       recipe for building training programs. Others suggest that ISD is too linear and rigid a
       process, that it is the primary reason that training is expensive, and that it takes too long
       to develop. ISD focuses on inputs; management wants outputs. Businesses want results,
       not the use of a design technology. Do you believe that ISD is a useful process? Why or
       why not? Are there certain situations when it is a more (or less) effective way to design

        The training design process is useful because it gives a systematic approach to training.
        Designing training unsystematically will reduce the benefits that can be achieved. For
        example, choosing a training method before determining training needs or ensuring
        employees’ readiness for training increases the risk that the method chosen will not be the
        most effective one for meeting training needs. Also, training may not even be necessary
        and may result in a waste of time and money. Employees may have the knowledge, skills,
        and behavior they need but simply not be motivated to use them.
        Regardless of the specific ISD approach used, the following assumptions should be
            Training design is effective only if it helps employees reach instructional or
                training goals and objectives.
            Measurable learning objectives should be identified before the training program

Chapter 01 - Introduction to Employee Training and Development

               Evaluation plays an important part in planning and choosing a training method,
                monitoring the training program, and suggesting changes to the training design
                process. (p. 7-9)

    6. Which of the training professionals’ roles do you believe is the most difficult to learn?
       Which is easiest?

        Student answers would vary.
        The training professionals’ perform the role of instructional designer, technical trainer, or
        needs analyst. Special skills are required to perform each role. The ASTD competency
        model illustrates the roles of training professionals. The model is divided into three tiers.
        The first tier shows the roles that training and development professionals can take. The
        second tier of the model includes areas of expertise, which are the specific technical and
        professional skills and knowledge required for success. The third tier includes the
        foundational competencies which are important regardless of a trainer's area of expertise
        or role but are used to a different extent in each role or specialization.

    7. How might technology influence the importance of training professionals’ roles? Can
       technology reduce the importance of any of the roles? Can it result in additional roles?

        The training professionals’ role would become easier and they would be able to reach
        more clients by using technology. They can put a training program on a CD-ROM or the
        Internet and allow employees the opportunity to access it when it is convenient for them.
        It should not reduce the importance of any of the roles because you will still need the
        trainers to implement the programs. Additional roles may develop when training experts
        in the technology field are used to answer questions on the Internet and to create the CD-
        ROM programs. (p. 29-30)

    8. Describe the training courses that you have taken. How have they helped you? Provide
       recommendations for improving the courses.

        Each student may share different experiences depending on the course opted for. Opting
        for a course would depend on needs and interests. Any course would be helpful if it is
        effective and the student achieves his/her instructional or training objective after the
        completion of the course. To make the course more effective and helpful, measurable
        learning objectives should be identified before the course begins. The student can
        evaluate the course by being involved in planning and choosing a training method,
        monitoring the program, and suggesting changes for improvement. (p. 8)

    9. How does training differ between companies that are considered BEST Award winners
       and those that are not?


Chapter 01 - Introduction to Employee Training and Development

        Companies that were BEST Award winners spent 10 percent more money per employee
        for training than did the Benchmark firms. BEST Award winners also used more learning
        technologies, such as computer-for Internet delivered training and spent les time training
        in the classroom than Benchmark firms. CDROMs and company intranets were the two
        most popular learning technologies used to deliver training. The BEST Award winners
        aligned their business strategy with their training and development program having
        measurable outcomes. (p. 37-38)

    10. What are the implications of the aging work force? What strategies should companies
        consider from a training and development perspective to best utilize older employees and
        prepare for their retirement?

        The aging population means that companies are likely to employ a growing share of older
        workers—many of them in their second or third career. Older people want to work, and
        many say they plan a working retirement. Despite myths to the contrary, worker
        performance and learning in most jobs is not adversely affected by aging. Older
        employees are willing and able to learn new technology.

        An emerging trend is for qualified older employees to work part-time or for only a few
        months at a time as a means to transition to retirement. Employees and companies are
        redefining what it means to be retired to include second careers as well as part-time and
        temporary work assignments. Another source of work force diversity is greater access to
        the workplace for people with disabilities. (p. 18)

    11. How has new technology improved training and development? What are some of the
        limitations of using iPods or PDAs for training?

        New technologies include the Internet, e-mail, CDROMs, DVDs, satellite or cable
        television, and mobile technology such as personal digital assistants (PDAs) and iPods.
        PDAs have the potential for freeing workers from going to a specific location to work
        and from traditional work schedules. While they offer greater flexibility, but at the same
        time technologies may result in employees being on call 24 hours a day, seven days a
        week. Many companies are taking steps to provide more flexible work schedules to
        protect employees’ free time and to more productively use employees’ work time. (p. 29-

    12. Explain how training relates to attracting new employees, employee retention, and


Chapter 01 - Introduction to Employee Training and Development

        Given the tight labor market and numerous job applicants’ lack of basic skills, many
        companies are unable to hire qualified employees. But they are unwilling or unable to
        leave jobs open. Therefore, they have to hire employees with skill deficiencies and rely
        on training and involvement in local school districts to correct the deficiencies. Retention
        is an important part of talent management. Talented employees are looking for growth
        and a career path. Training and development is a key to attracting and retaining talented
        employees. (p. 24)

    13. What is the relationship between talent management and employee engagement? What
         role can training and development practices play in keeping employee engagement
        high during poor economic times? Explain.

        Employee engagement is the degree to which employees are fully involved in their work
        and the strength of their commitment to their job and the company. Talent management
        helps to attract, retain, develop, and motivate highly skilled employees and managers.
        Therefore, talent management plays a crucial role in employee engagement. Employees'
        engagement is influenced by training and development. Training and development gives
        employees an opportunity for personal growth within the company and helps provide the
        company with the knowledge and skills it needs to gain a competitive advantage. Using
        training delivery methods that provide employees with the flexibility to manage their
        personal learning while balancing other work and nonwork responsibilities, such as
        online learning, helps build employee commitment to the company. (p. 15-16, p. 21)


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