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Improving Organizational Performance through Training Case

VIEWS: 10 PAGES: 34

									Improving Organizational Performance
          through Training

        Ronald L. Jacobs, Ph.D.
        The Ohio State University




             6 November 2007
Introduction

This session describes a case-study in which training was used to help
address a common problem in the banking sector, high employee
turnover.

The session will emphasize the analysis of the performance problem
and the evaluation of the training program: structured on-the-job training
(S-OJT).

Ensuring that training makes a strategic contribution is a continuing
challenge. But this goal cannot be achieved without understanding best
practices in HRD.

By the conclusion of the session, participants should have the
knowledge and skills to begin to use the process in their own bank
settings.
  Global Trends        Domestic Issues


                              CMFIS Act
Boundaryless
competition                   FTA
                  Korean      Global IBs
Financial         Banking
liberalization                M&As
                   Sector
                              Customer
Advances in                   Needs
technology
Challenges for HRD




                     Global Competence


         Core-Value                  Strategic
           Driven                    Alignment


                       Performance
                       Improvement
HRD Case Study


 HNB is a large regional bank in the U.S. The Retail Division has
 experienced high turnover among its frontline employees.

 Many of these individuals were the highest performing employees.
 This situation has hurt profits.

 As the HRD Manager, the Chairman has asked that you develop
 a training program to help address this problem.



 What would you do?
Definition . . .



Human Resource Development is the process of
improving organizational performance and learning
through the accomplishments that result from
employee development, organization development,
and career development programs.
                                           OSU Training
                                           Management System
                                          Conforms with ISO 10015 – Quality of Training


                          1. Analyze
0. Quality Management    performance
         System            problems



                            2. Define
                         training needs




         5. Evaluate
     training outcomes    6. Monitor       3. Design and plan
                         and improve            training




                         4. Provide for
                          the training
0. Quality Management System



• Document the mission and strategic direction of the organization
• Document the quality policies and priorities of the organization
• Document the training structure, staffing, and responsibilities

•   Outputs:
•   Organization strategic plan
•   Quality policy statement
•   Description of training structure
1. Analyze Performance Problems

a.   Analyze the current performance of a problem situation, strategic
     orientation, or change in operational context
b.   Identify the desired performance of a problem situation, strategic
     orientation, or change in operational context
c.   Identify the causes of the gaps in performance
d.   Identify the most likely training and non-training solutions that
     might be used to address the gaps in performance

Output:
•   Performance analysis report
2. Define Training Needs

a.   Identify the areas of employee competence related to the performance
     problem
b.   Identify the sources of information related to the areas of employee
     competence
c.   Identify any changes in the areas of employee competence based on
     requirements, technology, or continuous improvement efforts
d.   Identify any changes in employee competence based on legislative,
     regulatory or external certification requirements
e.   Conduct a job and task analysis
f.   Identify the employees who should receive the training
g.   Define the gaps between the existing and required areas of employee
     competence
h.   Develop methods for anticipating future competence requirements

Outputs:
•    Job and task analysis report
•    Needs analysis report
3.     Design and Plan the Training

Design
a.    Prepare the training objectives based on the areas of competence
b.    Analyze the characteristics of the trainees that might affect training effectiveness
c.    Describe the constraints in the setting that might affect training effectiveness
d.    Describe any policy, regulatory, certification requirements on the training
e.    Select the training strategy, training methods, and training media
f.    Develop the training program: trainer materials, trainee materials, performance
      guides, rating scales, tests, and all other materials and resources for the training
      program
g.    Conduct a pilot test of training program

Outputs:
•     Project documentation
•     Training program
•     Pilot test plan and results
•     Recommendations to improve the training design
3.    Design and Plan the Training (Cont’d)

Plan
a.   Identify the training provider(s), their roles, and expectations
b.   Ensure trainers are qualified to deliver the training
c.   Determine the training schedule, sequence, training location, and
     resources

Outputs:
•   Description of trainers and the training provider(s)
•   Contracts or letters of agreement with training provider(s)
•   Evidence of trainer qualification
•   Training plan
4.   Provide for the Training

a.   Obtain management support for the training
b.   Ensure the availability of resources to carry out the training plan
c.   Ensure that information learned during the training is used back in
     the work setting
d.   Identify the staff responsible for maintaining and up-dating the
     training

Outputs:
•   Memos, letters, or other means to communicate management
    support
•   Checklist that specifies the training resources
•   Performance guides
•   Management follow-up after the training
•   Staff assignments
5.   Evaluate Training Outcomes

a.   Evaluate the impacts of the training: improvements in
     performance, financial benefits, and use of the learning on the job
b.   Evaluate changes in learning and satisfaction
c.   Evaluate the training design: training strategy, training methods,
     training media
d.   Evaluate the training plan: training provider(s), schedule,
     sequence, and resources
e.   Evaluate unanticipated effects: management feedback,
     stakeholder satisfaction, employee motivation, organizational
     climate and culture, quality of work life

Outputs:
•   Evaluation plan
•   Evaluation report
6. Monitor and Improve the Training



a.   Maintain records related to trainees’ outcomes
b.   Maintain records related to organizational impacts
c.   Monitor institutionalization of the training program
d.   Implement improvements to the training program
e.   Implement improvements to the training management system

Outputs:
•   Employee training records
•   Evaluation reports
•   Revised training program
•   Revised training cycle
1. Analyze Performance Problems



                               Desired Performance




                      Need - Two levels of measured performance

                      Problem – A need that has value




                                Current Performance
1. Analyze Performance Problems

         • What is the current turnover rate?

              2004
              934/3147                 29 percent

              2005
              775/3098                 25 percent

              2006
              698/3032                 23 percent


         • What are the reasons for the turnover?

                   Self Initiated      Company Initiated
                   Personal reasons    Low performance
                   Better job          Attendance
                   No advancement      Dishonesty
1. Analyze Performance Problems


         • What percentage might be preventable?

                  Better job
                  No advancement

                  362 individuals or 15 percent


         • How much does it cost when someone leaves?

                  Recruit
                  Select
                  Basic teller training
                  One month wages

                  $4000 total per person

                  362 persons x $4000 = $ 1,448,000
1. Analyze Performance Problems




         • What are the underlying causes of the preventable turnover?

                  Interview employees
                  Interview managers/supervisors


                  Results: Frontline employees felt frustration because:

                  No clear job instructions
                  Lack of feedback on their performance
                  No development plan
1. Analyze Performance Problems: Summary



     • Current Situation   26 percent average turnover (3 years)
                           15 percent is potentially preventable
                           Preventable turnover occurs more frequently
                           Cost per turnover is approx. $4000 per
                           Total cost of turnover is $1,448,000
                           Other costs possible

     • Desired Situation   Reduce preventable turnover by 10 percent*

     • Cause(s)            Lack of clear expectations
                           Lack of job instruction
                           Lack of performance feedback
                           Lack of development plan
1. Analyze Performance Problems: Proposed Solutions




       • Conduct job analysis of frontline employee positions

       • Develop S-OJT modules on key areas

       • Certify supervisors on how to deliver S-OJT modules

       • Develop a blended training program:

                “Providing Feedback to Subordinate Employees”

                using classroom training to introduce the process
                and S-OJT (HRD staff) to use the process.

       • Produce materials to clarify HNB Development Institute
Structured On-the-Job Training




    The planned process of developing competence on
    units of work by having an experienced employee
    train a novice employee at the work setting or a
    location that closely resembles the work setting.
            Company              Employee Level                     Results
Delphi – US                  Operators, Supervisors    Reduced the number of wiring
                                                       errors
Truck Manufacturer – US      Production Technicians    Reduced the number of leaky
                                                       windshields
KLM Royal Dutch Airlines     Cabin Attendants          Provided more relevant customer
                                                       service training experience
Regional Hospital – US       New Supervisors           Provided information about the
                                                       mission and vision faster
Electric Utility – US        Supervisors               Reduced the number of back
                                                       injuries among production
                                                       employees
Apple Computer-iBook -       High Skilled Assemblers   Reduced training time, fewer
California                                             assembly errors
Seagate – Singapore          Production specialists    Reduced number of inspection
                                                       errors
Petroleum Company - Kuwait   New Engineers             Reduced time require to complete
                                                       job rotations
5. Evaluate Training Outcomes


           Impact
                         How did it affect measures of performance?




           Behavior
                         Do trainees respond to the information?




           Learning
                         Did trainees learn?




          Satisfaction   Did trainees like it?
5. Evaluate Training Outcomes




  Solutions to address the   Lack of:
                                                      Employee Turnover
  causes of the problem      • Job expectations
                             • Job instruction
                             • Performance feedback
                             • Development plan
5. Evaluate Training Outcomes




    • Efficiency - Does one approach achieve the outcomes faster,
      and is the cost less than the value of the outcomes?

    • Effectiveness - Does one approach result in superior work
      outcomes, and is the cost less than the value of the work
      outcomes?
5. Evaluate Training Outcomes




          Performance value – The financial worth of the work

          Training Costs – The expenses to design, deliver, and
          evaluate a program

          Benefit – The contribution of the training, given an
          accounting of the costs

          (Burden, Opportunity)
                      Performance Value

Costs                                       Quality
 Recruiting, hiring, orienting new staff    Accuracy
 Exit interviewer’s time                    Class
 Terminating an employee                    Novelty
 Administration related to termination      Error rate
 Separation pay                             Rework
 Unemployment tax                           Scrap
 Vacancy                                    Waste
 Replacement
 Increased supervision                     Difficult to Calculate
                                             Effect on suppliers
Quantity                                     Effect on customers
 Volume                                     Lost business
 Rate                                       Lost customers
 Productivity                               Reputation
 WIP
 Machine down time
 Cycle time
 Timeliness
    Training Costs


•    Work analysis
•    Training development
•    Training the trainer
•    Consultant
•    Materials, facilities, transportation
•    Training delivery
•    Training evaluation
•    Trainer backfill
•    Trainee’s time
•    Performance follow-up
Training Efficiency




                            Training Option A
                 Option B          Savings in Time
    Specialist




Performance
    Level                                   Time savings: 4 - 6:1
                                            $ savings:     2 - 8:1

     Novice

                                Time to Learn
Training Effectiveness



     Employee learns through         Employee learns through
       unstructured OJT                      S-OJT




 Work Accomplished
                                    Measured Performance

 •    Truck windshields installed   Fewer reworked windshields
 •    Sales calls made              Higher sales volume
 •    Machinery on-line             Higher machine productivity
 •    Hard disks manufactured       Lowered scrap rate
Lessons Learned



         Training Service Provider               Performance Consultant –
                                                     Business Partner
  •   Like to use your favorite solution   •   Focus is on performance – the
      over and over                            outcomes of the solution –
                                               regardless of the solution
  •   Respond to requests, implement       •   Respond to requests, implement a
      solutions based on request               process to determine the most
                                               appropriate solution
  •   Evaluation is based on perceptions   •   Evaluation is based on perceptions
      of participants                          of participants, but also the impact of
                                               the solutions
  •   Use single solutions                 •   Use multiple solutions to address
                                               complex situations
           Kam-sa Ham-ni-da!

           너무) 감사합니다!


Ronald L. Jacobs
Professor, Workforce Development and Education
Director, Center on Education and Training for Employment
The Ohio State University

Email: jacobs.3@osu.edu
Homepage: http://www.coe.ohio-state.edu/rjacobs/
CETE website: http://cete.org/

								
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