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MBA760 Chapter 01

Oct 18, 2014

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MBA760 Chapter 01
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Introduction to EmployeeTraining and DevelopmentChapter 1

6th EditionRaymond A. NoeCopyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin1-#Learning ObjectivesDiscuss the forces influencing the workplace and learning, and explain how training can help companies deal with these forcesDraw a figure or diagram and explain how training, development, informal learning, and knowledge management contribute to business successDiscuss various aspects of the training design process1-#Learning ObjectivesDescribe the amount and types of training occurring in U.S. companiesDiscuss the key roles for training professionalsIdentify appropriate resources (e.g., journals, websites) for learning about training research and practice1-#IntroductionCompetitiveness: Ability to maintain and gain market share in an industryHuman resource management: Policies, practices, and systems that influence employees behaviour, attitudes, and performanceStakeholders: All parties that have an interest in seeing that the company succeeds1-#Training and Development: Key Components of LearningLearning: Acquiring knowledge, skills, competencies, attitudes, or behaviorsHuman capital: Refers to:Knowledge (know what)Advanced skills (know how)System understanding and creativity (know why)Motivation to deliver high-quality products and services (care why)1-#Figure 1.1-The Business Role of Training and Development

Informal LearningLearningHuman Capital

Performance Improvement Reach Business Goals

1-#Training and Development: Key Components of LearningTraining: Facilitates learning job-related competencies, knowledge, skills or behaviorDevelopmentFuture focusedIncludes:Formal education, job experiences, relationshipAssessments of personality, skills, and abilitiesFormal training and developmentPrograms, courses, and events that are developed and organized by the company1-#Training and Development: Key Components of LearningInformal learningLearner initiatedOccurs without a trainer or instructor Motivated by an intent to developDoes not occur in a formal learning settingBreadth, depth, and timing is controlled by the employeeExplicit knowledgeWell documented, easily articulated, and easily transferred from person-to-person1-#Training and Development: Key Components of LearningPrimary focus of formal training and developmentTacit knowledgePersonal knowledge based on individual experiences that is difficult to codifyResult of informal learningKnowledge managementProcess of enhancing company performance by designing and implementing: Tools, processes, systems, structures, and cultures to improve the creation, sharing, and use of knowledge1-#Designing Effective TrainingTraining design processSystematic approach for developing training programsBased on the principles of Instructional System Design (ISD)ADDIE model- Analysis, design, development, implementation, and evaluationShould be systematic yet flexible to adapt to business needs

1-#Figure 1.2 - Training Design Process1-#Designing Effective TrainingFlaws of the ISD modelStep by-step approach is rarely followed in real life organizationsNecessary requirement of trainers adds time and cost to developing a training programImplies an end point: evaluationMay lead to assumption that training is the best solution1-#Table 1.1 - Forces Influencing Working and LearningEconomic cyclesGlobalizationIncreased value placed on intangible assets and human capitalFocus on link to business strategyChanging demographics and diversity of the workforceTalent managementCustomer service and quality emphasisNew technologyHigh-performance work systems1-#GlobalizationOffshoring: Process of moving jobs from the United States to other locations in the worldAdvantage- Lower labor costsDisadvantage Low standards of health and safetyLack of necessary skills to perform the job

1-#Table 1.2 - Examples of Intangible AssetsHuman Capital Tacit knowledge Education Work-related know-how Work-related competenceCustomer Capital Customer relationships Brands Customer loyalty Distribution channelsSocial Capital Corporate culture Management philosophy Management practices Informal networking systems Coaching/mentoring relationshipsIntellectual Capital Patents Copyrights Trade secrets Intellectual property1-#Increased Value Placed on Intangible Assets and Human CapitalHuman capital: Refers to employeesAttributesLife experiencesKnowledgeInventivenessEnergy and enthusiasmIntellectual capital: Codified knowledge that exists in a companySocial capital: Relationships in the company1-#Increased Value Placed on Intangible Assets and Human CapitalCustomer capital: Value of relationships with persons or other organizationsImplications of intangible assets and human capitalFocus on knowledge workerEmployees who contribute to the company not through specialized body of knowledgeEmployee engagement Degree to which employees are fully involved in their work Strength of employee engagementAttitude or opinion surveys measure level of engagement1-#Increased Value Placed on Intangible Assets and Human CapitalChange and continuous learningChange: Adoption of a new idea or behavior by a company Learning organizationCulture of lifelong learning Enables all employees to continually acquire and share knowledgeRequires financial, time, and content resources

1-#Changing Demographics and Diversity of the Work ForceIncrease in racial and ethnic diversityEthnically and racially diverse labor forceIncreased participation of minorities in the work forceAging labor forceIncreased work-force participation of individuals 55 years or greater Generational differences1-#Changing Demographics and Diversity of the Work ForceTo manage diversity managers and employees must be trained in:Communicating effectivelyCoaching, training, and developingProviding performance feedback that is free of stereo typesRecognizing and responding to generational differencesAllowing employees of all backgrounds to be creative and innovative1-#Talent ManagementSystematic, planned, and strategic effort by a companyTo attract, retain, develop, and motivate highly skilled employees and managers Involvesacquiring and assessing employeeslearning and developmentperformance management, and compensation1-#Talent ManagementIs important due to:Changes in demand for certain occupations and jobsSkill requirementAnticipated retirement of baby boomer generationRequirement to develop managerial talent1-#Customer Service and Quality EmphasisTotal Quality Management (TQM)Companywide effort to continuously improve the ways people, machines, and systems accomplish workCore values of TQMMethods and processes designed to meet the needs of internal and external customersEvery employee receives training in qualityErrors are prevented from occurring rather than being detected and corrected1-#Customer Service and Quality EmphasisPromotes cooperation with vendors, suppliers, and customersMeasures progress with feedback based on dataQuality standardsMalcolm Baldrige National Quality Award ISO 9000Family of standards related to qualityAddress what the company does to meet regulatory requirements1-#Customer Service and Quality EmphasisSix Sigma processMeasuring, analyzing, improving, and then controlling processes once: They have been brought within the narrow six sigma quality tolerances or standardsTraining helps by Teaching employees statistical process controlEngaging in lean processes1-#Customer Service and Quality EmphasisLean thinkingDoing more with less effort, equipment, space, and time, but satisfying consumer needs and wantsISO 10015 Ensures that training is linked to company needs and performance1-#New TechnologyInfluence on trainingMakes training more realisticAllows flexibility of time and any placeReduces travel costsProvides greater accessibility and consistencyIncreased ability to access experts and share learning with othersCreates a learning environment that provides feedback, self-pacing, and practice exercisesAllows greater use of alternative work arrangements1-#High performance models of work systemsWork teams Employees with various skills interact to assemble a product or provide a serviceCross training Training employees in a wide range of skills to fill any of the roles needed to be performed1-#High performance models of work systemsVirtual teams Separated by time, geographic, cultural, and/or organizational boundaries Rely on technology to interact and complete their projects1-#Snapshot of Training PracticesKey trends in learning initiative investments:Direct expenditures, has remained stable over the last several yearsIncreased demand for specialized learning thatUse of technology-based learning delivery increased from 11%in 2001 to 29 %in 2010Self-paced online learning is the most popular technology-based learning1-#Snapshot of Training PracticesTechnology-based learning Has improved learning efficiencyHas resulted in a larger employeelearning staff member ratioPercentage of services distributed by external providers dropped from 29 % in 2004 to 23 % in 2010.1-#Table 1.8 - Characteristics of BEST Award WinnersAlignment of business strategy with training and developmentVisible support from senior executivesEfficiency in training and development through internal process improvements, use of technology, and outsourcingEffective practices by aligning training and development to business needs and providing all employees with access to training and development on an as-needed basisInvestment in training and developmentDifferent learning opportunities providedMeasurement of effectiveness and efficiency of training and development activitiesNon-training solutions for performance improvement used, including organization development and process improvement1-#Figure 1.5 - The 2011 ASTD Competency Model1-#Snapshot of Training Practices Who provides trainingTrainers, managers, in-house consultants, and employee expertsOutsourcing: Training and development activities provided by individuals outside the company1-#Snapshot of Training Practices Who is in charge of trainingProfessionals in human resources and human resource developmentHuman resource developmentIntegrated use of training and development, organizational development, and career development :To improve individual, group, and organizational effectiveness1-#Chart18.24.2Informal LearningLearningHuman Capital

SalesKnowledge ManagementFormal Training & Employee Development

Sheet1SalesKnowledge Management8.22nd Qtr4.2Informal LearningLearningHuman CapitalTo resize chart data range, drag lower right corner of range.