Chapter 1 Intro to Employee Training and Development

Regardless of the approach, all ISD approaches share the following assumptions

- 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 begins. - Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process.

The value of intangible assets and human capital have three important implications:

1) A focus on knowledge workers 2) Employee engagement, and 3) An increased emphasis on adapting to change and continuous learning

Two key features of ISO 10015

1) Companies have to determine the return on investment of training to company performance 2) ISO 10015 requires companies to use appropriate design and effective learning processes.

7 Steps to training design process: short

1) Needs assessment 2) Ensure employees are motivated and have skills needed 3) Create learning environment 4) Apply training/transfer of training 5) Evaluation plan 6) choose training method 7) Monitoring and evaluating the program

Forces influencing working and learning

- Economic cycles - Globalization - Increased value placed on intangible assets and human capital - Focus on link to business strategy - Changing demographics and diversity of the workforce - Talent management - Customer service and quality emphasis - New technology -High-performance work systems

Use of new technology and work designs such as work teams needs to be supported by specific human resource management practices. These practices include the following actions:

- Employees choose or select new employees or team members - Employees receive formal performance feedback and are involved in the performance improvement process - Ongoing training is emphasized and rewarded - Rewards and compensation are linked to company performance - Equipment and work processes encourage maximum flexibility and interaction between employees - Employees participate in planning changes in equipment, layout, and work methods - Employees understand how their jobs contribute to the finished product or service

Core values of TQM:

- Methods and process are designed to meet the needs of internal and external customers. - Every employee in the company receives training in quality. - Quality is built into a product or service so that errors are prevented from occurring rather than being detected and corrected. - The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. - Managers measure progress with feedback based on data.

Why it is argued that the ISD model is flawed

- The training design process rarely follows the neat, orderly, step-by-step approach of activities shown in Figure 1.1 - Some organizations require trainers to provide detailed documents of each activity found in the model, which adds time and cost - ISD implies an end point: Evaluation. However good instructional design requires an iterative process of design, execution, evaluation, and reconsideration of the needs that the program was designed to meet, as well as the learning environment, the transfer of training, and other activities of the ISD process. - Many companies may claim to use an instructional design approach but dilute its application.

7 steps in training design process (Figure 1.2)

1) needs assessment (identify if training is needed) 2) ensure employees have the motivation and basic skills necessary to master the training content 3) create a learning environment that has the features necessary for learning to occur 4) ensure trainees apply the training content to their jobs [these steps involve trainee understanding how to manage skill improvement, as getting co-worker and manager support] 5) develop evaluation plan. (Includes identifying what type of outcomes training is expected to influence, choose a design that allows you to determine the influence of training on these outcomes, and plan how to demonstrate how training affects the "bottom line" [using a cost-benefit analysis to determine the monetary benefits resulting from training]) 6) choose the training method based on the learning objectives and learning environment. 7) evaluate the program and make changes in it or revise any of the earlier steps in the process to improve the program so learning, behavior, change, and other learning objectives are obtained

Informal learning may account up to ___% of learning within organizations

75

Continuous learning

A learning system in which employees are required to understand the entire work system including the relationships among their jobs, their work units, and the company. Also, employees are expected to acquire new skills and knowledge, apply them on the job, and share this information with fellow workers

The training design process is sometimes referred to as

ADDIE model because it includes Analysis, Design, Development, Implementation, and Evaluation.

ASTD stands for

American Society for Training and Development formally ASTD ATD is Association for Talent Development.

Steps 1 and 2 are related to

Analysis

Training is an important component of the process. Six Sigma involves highly trained employees known as:

Champions Master Black Belts Black Belts and Green Belts Who lead and teach teams that are focusing on an ever-growing number of quality projects.

First companies to have achieved ISO 10015 certification are in ____ and ____, but ____ companies are likely to attempt to achieve certification soon.

China and Switzerland U.S.

Training providers outside the company include

Colleges and Universities Community and junior colleges Technical and Vocational institutions Product suppliers Consultants and Consulting firms Unions Trade and professional organizations Government Organizations

Benefit of offshoring

Companies can realize lower labor costs because wage and benefits cost are lower

Social capital: Intangible assets

Corporate culture Management philosophy Management practices Informal networking systems Coaching/mentoring relationships

Malcolm Baldrige National Quality Award

Created by public law the highest level of national recognition for quality that a U.S. company can receive. Given annually.

ISO 9000 quality management standards are based on eight quality management principles:

Customer focus Leadership People involvement A Process approach A Systems approach to management Continuous improvement Using facts to make decisions Establishing mutually beneficial relationships with suppliers

Customer capital: Intangible assets

Customer relationships Brands Customer loyalty Distribution channels

Issues affecting companies in all industries and sizes and influencing training practices

Customer service, productivity, safety, employee retention and growth, the uncertainty in the economy, coping with the retirement of skilled employees, the use of new technology.

Steps 3, 4, & 5 are related to

Design

Step 7 relates to

Evaluation

Company's value includes three types of assets that are critical for company to provide goods and services: (Table 1.2 for Intangible assets)

Financial assets (cash and securities) Physical assets (property, plant, equipment) Intangible assets (human capital, customer capital, social capital, and intellectual capital.

3 ways that learning occurs in a company (Figure 1.1)

Formal Training & Employee Development Informal Learning Knowledge Management

Example of Six Sigma process

GE introducing the Six Sigma quality initiative meant going from approximately 35,000 defects per million operations - which is average for most companies, including GE - to fewer than 4 defects per million in every element of every process GE businesses perform - from manufacturing a locomotive part to servicing a credit card account to processing a mortgage application to answering a phone. Six Sigma quality initiative has produced more than $2 billion in benefits for GE

Important functions in most companies

Human resource management Finance Production and operations Research and Development Marketing

Step 6 relates to

Implementation

Learning needs to demonstrate how it contributes to the company's competitive advantage through:

Improving employee performance, Supporting the business strategy, contributing positively to business outcomes such as quality, productivity, development of new products, and retaining key employees.

Human resource development professionals might be involved in

Job and task analysis Instructional systems design On-the-job training Individual performance improvement

4 musts of human capital

Know what - knowledge Know how - skills Know why - understanding & creativity Care why - motivation to deliver

Point values for the Baldrige award: (Table 1.5)

Leadership (120 pts) Measurement, Analysis, and Knowledge Management (90 pts) Strategic Planning (85 pts) Workforce Focus (85 pts) Operations Focus (85 pts) Results (450 pts) Customer Focus (85 pts) Total points 1,000

Six categories of the Baldrige award:

Manufacturing Service Small business Education Health care Nonprofit

Intellectual capital: Intangible assets

Patents Copyrights Trade secrets Intellectual property

Human capital may be more important than ____ or ____ for providing company advantage because it is difficult to imitate or purchase and is unique to the company.

Physical capital (equipment or technology) Financial capital (monetary assets, cash)

Other human resource management practices include (6)

Recruiting employees Selecting employees Designing work Compensating employees Developing good labor and employee relations

____ ____, ____, or ____ -also called competencies- are needed to perform each role successfully.

Special knowledge, skills, or behaviors

Human Capital: Intangible assets

Tacit knowledge Education Work-related know-how Work-related competence

Organizational development professionals might focus on training as well as

Team building Conflict avoidance Employee development Change management

Competitiveness

a company's ability to maintain and gain market share in an industry

Total Quality Management (TQM)

a companywide effort to continuously improve the ways people, machines, and systems accomplish work.

International Organization for Standardization (ISO)

a network of national standards institutes that includes 160 countries and has a central governing body in Geneva, Switzerland, is the world's largest developer and publisher of international standards.

Instructional System Design (ISD)

a process for designing and developing training programs (training design process Figure 1.1 is based on principles of ISD)

Six Sigma process

a process of measuring, analyzing, improving, and then controlling processes once they have been brought within the narrow Six Sigma quality tolerances or standards

ISO 10015

a quality management tool designed to ensure that training is linked to company needs and performance. Has two key features.

Training design process

a systematic approach for developing training programs

ISO 10015 defines training design as

analyzing, planning, doing, and evaluating

Steps companies have taken to ____, ____, and ____ workforces (3 steps)

attract retain motivate

Human resource practices play a key role in ____, ____, ____, and ____ employees.

attracting, motivating, rewarding, and retaining employees

To successfully manage in a global economy, managers need to

be self-aware, be able to build international teams, create global management and marketing practices, and interact and manage employees from different cultural backgrounds.

Intellectual capital

codified knowledge that exists in a company

To be eligible for the Baldrige award a company must

complete detailed application that consists of basic information about the firm and in-depth presentation of how it addresses specific criteria related to quality improvement.

The objective of Six Sigma is to

create a total business focus on serving the customer; that is, to deliver what customers really want when they want it.

ASTD competency model (Figure 1.5)

describes what it takes for an individual to be successful in the training and development field.

Learning organization

embraces a culture of lifelong learning, enabling all employees to acquire and share knowledge continually

Learning

employees acquiring knowledge, skills, competencies, attitudes, or behaviors

Disadvantage of offshoring

employees may lack the skills needed to perform the jobs. Also, local standards for employee safety, health, and working conditions may be substantially lower than in the United States, resulting in negative publicity and turning off potential customers.

Knowledge workers

employees who contribute to the company not through manual labor, but through what they know, perhaps about customers or a specialized body of knowledge.

Informal learning my be important because it can lead to effective development of tacit knowledge, which can be contrasted with ____ knowledge

eplicit

ISO 9000

family of quality standards that address what the company does to meet regulatory requirements and the customer's quality requirements while striving to improve customer satisfaction and continuous improvement. The standards represent an international consensus on quality management practices.

Learning professionals might focus on

formal training and development activities as well as ensuring that informal learning and knowledge sharing occurs through use of social networking tools.

Informal cannot replace

formal training and employee development

Development is similar to training, except that it tends to be more

future-focused

ISO 9000:2000

has been adopted as the quality standard in nearly 100 countries around the world, meaning that companies have to follow these standards to conduct business in those countries.

training and development have a direct influence on ____ and ____ capital because they affect education, work-related know-how and competence, and work relationships.

human and social

Training and development can be the responsibility of professionals in

human resources, human resource development, or organizational development

Talent management professionals might focus on

identifying the top talent in the company and ensuring that they get the training and development needed to promote them or prepare them for new positions

Caterpillar Inc's community of practice has resulted in

improved decision making increased collaboration and teamwork and better product design and development

The quality projects focus on ____ ____ and ____ ____ in products and services.

improving efficiency and reducing errors

Alternative work arrangements

include independent contractors, on-call workers, temporary workers, and contract company workers.

From the company's perspective, what employees learn contributes to the development of

intangible assets such as human capital

Human resource development

integrated use of training and development, organizational development, and career development to improve individual, group, and organizational effectiveness

Work teams

involve employees with various skills who interact to assemble a product or provide a service

Lean thinking

is a way to do more with less effort, equipment, space, and time, but still provide customers with what they need and want.

Explicit knowledge

knowledge which is well documented, easily articulated, and easily transferred from person-to-person. Tends to be primary focus of formal training and employee development.

The overall goal of training and development is

learning

Informal learning

learning that is learner initiated, involves action and doing, is motivated by an intent to develop, and does not occur in a formal learning setting

ISO develops standards related to

management as well as other areas like education, music, ships, and even protecting children.

Companies are experiencing great change due to

new technologies, rapid development of knowledge, globalization of business, and development of e-commerce

Informal learning is central to developing tacit knowledge because it involves employee interactions in personal relationships with ____, ____, & ____ through which tacit knowledge is shared.

peers, colleagues, and experts

Tacit knowledge

personal knowledge based on individual experiences that is difficult to codify

Training

planned effort by a company to facilitate learning of job-related competencies, knowledge, skills, and behaviors by employees.

To be effective, training must

play a strategic role in supporting the business

Human Resource Management

policies, practices and systems that influence employees' behavior, attitudes, and performance

Knowledge management

process of enhancing company performance by designing and implementing tools, processes, systems, structures, and cultures to improve the creation, sharing, and use of knowledge Contributes to Informal learning

Offshoring

process of moving jobs from the United States to other locations in the world

Example of Explicit knowledge

processes checklists flowcharts formulas definitions

Part of lean thinking includes training workers in new skills or teaching them how to apply old skills in new ways so they can

quickly take over new responsibilities or use new skills to help fill customer orders.

Human capital

refers to knowledge (know what), advanced skills (know how), system understanding and creativity (know why), and motivation to deliver high-quality products and services (care why) sum of life experiences, knowledge, inventiveness, energy, and enthusiasm that employees invest in their work

Social capital

relationships in the company

Stakeholders

shareholders, the community, customers, employees, and all the other parties that have an interest in seeing that the company succeeds

Talent management

systematic, planned, and strategic effort by a company to use bundles of human resource management practices, including acquiring and assessing employees, learning and development, performance management, and compensation to attract, retain, develop, and motivate highly skilled employees and managers

Virtual teams

teams that are separated by time, geographic distance, culture, and/or organizational boundaries and that rely almost exclusively on technology (such as e-mail, Internet, and video conferencing) to interact and complete their projects.

Change

the adoption of a new idea or behavior by a company

Employee engagement

the degree to which employees are fully involved in their work and the strength of their commitment to their job and the company

Competitive Advantage

the training practices have helped them grow the business and improve customer service by providing employees with the knowledge and skills they need to be successful

Outsourcing

training and development activities are provided by individuals outside the company

Formal training and development

training and development programs, courses, and events that are developed and organized by the company

Development

training as well as formal education, job experiences, relationship, and assessments of personality, skills, and abilities that help employees prepare for future jobs or positions

Cross training

training employees in a wide range of skills so they can fill any of the roles needed to be performed on the team

Customer capital

value of relationships with persons or other organizations outside the company for accomplishing the goals of the company (e.g., relationships with suppliers, customers, vendors, and government agencies)

ISO standards are ____, but countries may decide to adopt ISO standards in their regulations; and as a result, they may become a requirement to compete in the market.

voluntary