Chapter 9. Training for Improved Performance PDF

Chapter 9. Training for Improved Performance LEARNING OBJECTIVES ◼ After reading this chapter you should be able to:  Explain how employee training practices can be aligned with an organization’s competitive strategy.  Describe how partnering and using a systematic p...

Chapter 9. Training for Improved Performance LEARNING OBJECTIVES ◼ After reading this chapter you should be able to:  Explain how employee training practices can be aligned with an organization’s competitive strategy.  Describe how partnering and using a systematic process for developing training can help assure that an organization benefits from training.  Describe the variety of training methods available, and explain how to make those methods more effective.  Explain why the purpose of a training evaluation should be used as a guide in designing the evaluation process. 2  How can Strategic Employee Training Improve an Organization? ◼ What is Training?  A planned effort by a company to help employees learn job-related knowledge, skills, and attitudes. ◼ Most organizations offer some type of training. Various formats are used. Such as  Large group lectures given by an expert  On-the-job training delivered by a supervisor  Simulations guided by a computer program  Small group projects coordinated by an executive or  online discussions with colleagues from around the country 3 Why Do Firms Train Employees? 4 Improving Organizational Effectiveness ◼ Training, when designed and delivered properly, can improve the overall effectiveness of an organization in three ways: 1. It can boost employees’ commitment and motivation. 2. Training helps employees perform their work more effectively and efficiently. 3. Training benefits organizations is by helping them to meet their strategic objectives 5 B-S>C 6  B-S>C ❑ B: the gross benefits that will accrue to the employer if the employee gets this training ❑ S: the increases in salary that must be paid to the employee by the employer because of the training ❑ C: the cost of training ◼ Firms train employees if the net benefits accrued exceeds the costs of the training.  In general, the cost of training are expended up front.  The value added and the amount that must be paid back to the employee are both net present values. 7  Gross Benefits from Training is Affected by: ◼ Factors that impact on the employee’s tenure with the firm (demographics, local job market conditions, firm’s HR practices) ◼ The worker’s preexisting skills ◼ How the training in question might complements those skills ◼ The impact of the training on employee effort and loyalty, because training improvement the employee’s bargaining position vis-à-vis the firm ◼ Spillovers to other employees , both direct and indirect ◼ The impact of the training program has on recruitment 8  Ability to Appropriate the Returns to Training ◼ Depends on the general bargaining strengths and proclivities of employee and employer ◼ The extent to which the training develops firm-specific vs. more general-purpose human capital ◼ Whether a substantial “lemons” problem exists for other employers who might seek to lure the employee away ◼ The degree of employee inertia, particularly loyalty engendered by the training 9  Cost of Training & Tips for Keeping Costs Low ◼ Visible costs  Development costs: Partnership with other organizations, purchase off-the-shelf training; use free or subsidized training from the government  Delivery costs: Reduce trainee travel and eliminate facility costs, reduce number and length of hand-outs  Trainer salary & benefits: train current employees to be part-time trainers; used contract trainers ◼ Hidden costs  Trainee compensation & lost productivity  Wasted investments: use needs assessments, partner with management to increase transfer 10  Evaluating the Costs of Training ◼ OJT can sometimes be relatively cheap, and the apprentices can sometimes be employed for less than the value they provide the organization. ◼ Outstanding training programs can be leveraged by turning them into general training institutes, which both amortizes the cost of the program and gives the organization the ability to skim the cream of trainees. ◼ Public support can sometimes be enlisted to help defray the costs of training 11 Strategic Framework for Employee Training 12 Differentiation vs. Cost Leadership Strategy ◼ A cost leadership strategy ◼ Differentiation strategy requires that employees requires that employees be have knowledge, skills, and able to deliver services or attitudes that help reduce make products that are costs and improve efficiency superior to the services or products offered by  By training their competitors. employees on quality control principles and practices, companies  Companies with this have been able to strategy work to offer become more efficient, training in team-focused thereby reducing costs creativity and customer and increasing profits service. 13 Internal vs. External Labor Orientation ◼ Companies with internal labor orientation are willing to spend time and money to train current employees. ◼ Companies with external labor orientation tend instead to hire new employees to fill their needs or to find ways to keep training costs low. 14  Designing Training Programs ◼ On-site vs. off-site ◼ Provided internally vs. by an external vendor ◼ Organization-specific vs. participants from multiple organizations ◼ Vocational training focused on particular job competencies; through more general professional training; to education and training focused more on personal human and intellectual development ◼ Individuals vs. groups/teams as the recipients of the training 15 Stages of Instructional Design 16 Key Principles for Getting Benefits from Training ◼ Transfer of training (application on the job of knowledge, skills, or attitudes learned in training) is important to achieve the benefits of training. ◼ 1) Operate training as a partnership among employees, their managers, and HR professionals  Powerful influence on job performance ◼ Clear expectations ◼ Necessary support Manager’s ◼ Useful feedback responsibilities ◼ Appropriate consequences ◼ Individual capacity Both manager & HR ◼ Required knowledge and skill professional 17 Key Principles for Getting Benefits from Training ◼ 2) Develop training systematically!  Needs assessment: Determine who should be trained and what the training should include  Design and delivery: Ensure that training maximizes learning and transfer  Evaluation: Determine how training can be improved, whether it worked as intended, and whether it should be continued 18 How Are Training Needs Determined? ◼ Through Needs Assessment.  Proactive needs assessment is a systematic process for determining and prioritizing the training programs to be developed and delivered by an organization. It has three steps—organization analysis, task analysis, and person analysis.  Reactive needs assessment is a problem-solving process used to determine whether training is necessary to fix a specific performance problem and, if training is necessary, what training should be delivered. 19 Proactive Needs Assessment ◼ Organization Analysis  A process used to identify characteristics of the organizational environment that will influence the effectiveness of training (e.g., strategic goals, resources, management support)  Transfer of training climate ◼ Environmental factors that support training, including policies, rewards, and the attitudes and actions of management and coworkers. 20 Proactive Needs Assessment (Cont’d) ◼ Task Analysis  A process identifying the tasks performed by trainees and the knowledge and skill necessary to perform the tasks effectively.  Common process for task analysis ◼ Groups of job incumbents develop lists of the tasks performed. ◼ Human resource professionals group tasks into clusters based on similarity. ◼ Groups of managers generate knowledge and skill statements for each task cluster. ◼ Surveys, given to a new sample of incumbents, verify the task, task cluster, knowledge, and skill lists. 21 Proactive Needs Assessment (Cont’d) ◼ Three variations of task analysis  Competency modeling similar to task analysis but results in a broader, more worker-focused (as opposed to work- focused) list of training needs, most frequently used with managerial jobs.  Cognitive task analysis examines the goals, decisions, and judgments that employees make on the job.  Team task analysis involves examining the task and coordination requirements of a group of individuals working together toward a common goal. 22 Proactive Needs Assessment (Cont’d) ◼ Person Analysis  a process used to identify who needs training and what characteristics of those individuals will influence the effectiveness of training  Involves answering three questions: ◼ Is training necessary to ensure that employees can perform tasks effectively? ◼ If training is needed, who needs the training? ◼ Are potential trainees ready for training? 23 Test Your Knowledge ◼ An examination of the causes of performance deficiencies in a group or individual is called: a. Organizational analysis b. Task analysis c. Person analysis d. Needs analysis 24 Test Your Knowledge ◼ Training most effectively addresses: a. Motivation problems b. Skill and ability deficiencies c. Lack of performance feedback d. Lack of resources to do job 25 Reactive Needs Assessment ◼ Problem definition → Causal analysis → Solution implementation ◼ Potential solutions to performance problems  Sales agents expect their managers to sell expensive and higher profit margin items (lack of clear expectations) – explain to all sales agents that sales high-margin items are part of each employee’s job duties.  Sales agents are rewarded for number of items they sell rather than for total money value of sales (inappropriate consequences) – alter rewards so commission is based not on number of sales but on profit from sales. 26 Prioritizing and Setting Objectives ◼ Determining Priorities ◼ Creating Objectives  Effective Learning Objectives have three components. Performance: what the trainee is expected to do or produce Conditions: important circumstances under which performance is to occur Criteria: acceptable performance in a quantifiable and objective way 27  Sample Prioritization Worksheet Using Knowledge, Skill, and Attitude Statements 28  Training Methods Classroom Instruction Audio- Action visual Learning Training Computer- Team Based Training Training Training Methods On-the- Experiential Job Programs Training Behavior Simulations Modeling Business Games & Case Studies 29 Training Methods 30 Training Methods ◼ Presentation is the primary passive method of instruction. A presentation involves providing content directly to learners in a non-interactive fashion. ◼ Discussions represent a more active training method. Discussions allows for two-way communication between trainer and trainees. Discussion can help trainees to accomplish several things: ◼ Recognize what they do not know but should know. ◼ Get their questions answered. ◼ Get advice on matters of concern to them. ◼ Share ideas and develop a common perspective. ◼ Learn about one another as people. 31 Training Methods ◼ Case Study is an active training method in which trainees discuss, analyze, and solve problems based on real or hypothetical situations. ◼ Discovery is an active method that involves presenting trainees with a task that offers rich opportunities to learn new skills. ◼ Role Playing – When trainees engage in role playing, each participant acts out a part in a simulated situation. This active method offers an opportunity for trainees to practice new skills in the training environment. 32 Training Methods ◼ Simulation. active methods that reproduce events, processes, and circumstances that occur in the trainee’s job. ◼ Behavior Modeling – draws together principles of learning from many different areas. The basic process is simple: Trainer explains key learning points Trainer or model performs a task while trainees observe Trainees practice performance while trainer observes Trainer provides feedback to trainees ◼ On-the-Job Methods 33 Implementing the Training Program ◼ Employees are most likely to learn when training is linked to their current job experiences and tasks. ◼ Employees need a chance to demonstrate and practice what they have learned ◼ Trainees need to understand whether or not they are succeeding. ◼ Well-designed training helps people remember the content. ◼ Written materials should have an appropriate reading level. 34  How Do Organizations Determine Whether Training is Effective? ◼ Training effectiveness refers to the extent to which trainees benefited from training. ◼ The training evaluation process consists of four steps: (1) determining the purpose of the evaluation (2) deciding on relevant outcomes (3) choosing an evaluation design (4) collecting and analyzing the data and reporting the results 35 Evaluating the Training Program: Purpose ◼ The first step in evaluation is to determine the purpose of the evaluation. ◼ Most of the reasons to evaluate training fit into three primary categories:  provide feedback to designers and trainers that helps improve the training;  provide input for decisions about whether to continue providing or discontinue providing the training; and  provide information that can be used to market the training program. 36 The Three Primary Targets of Evaluation 37  Evaluating the Training Program: Outcomes ◼ Internal Criteria: measure employee outcomes of training  Reactions: How do participants Feel about the training program? (Attitudes, satisfaction, etc.)  Learning: to what extent have trainees learned what was taught? (Testing KSAs) ◼ External Criteria: measure impact of training on job  Transfer: What on-the-job changes have occurred due to training? Applying learning acquired in training to behavior on the job. (Actual use of KSAs)  Results: what are the outcomes that accrue to a group or the organization as a whole? (profits, quality, customer satisfaction, etc.) 38  Evaluating Training Results Results Contribution to organization Behavior Learning Reaction Difficulty to measure Evaluating the Training Program: Design ◼ Post-test Only – The designs most commonly used in organizations.  This means that training outcomes are measured only at the end of training for the training group. ◼ Pre-test and Post-test with Control Group  Evaluators test employees at the beginning and at the end of training (to look for change) and can compare trained employees with untrained employees with similar characteristics (to verify that training caused the change). 40  Takeaways ◼ Training is highly complementary to a work environment in which individuals can progress.  Most employees like to see their competencies grow, and they are grateful to organizations and managers that help them to learn, to accomplish more, and to have a richer and more interesting existence.  Training signals to employees the firm’s commitment to them.  Training has powerful third-party effects 41