Chapter 1: Introduction to Employee Training and Development

Introduction
• Competitiveness refers to a company's ability to maintain and gain market share in an
industry. Although they are different types of businesses, these four companies have training
practices that have helped them gain a competitive advantage in their markets. That is, 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.
• Human Resource Management refers to the policies, practices and systems that influence
employees' behavior, attitudes and performance. Human Resource practices play a key role in
attracting, motivating, rewarding, and retaining employees. Other Human resource
management practices include recruiting employees, selecting employees, designing work,
compensating and developing good labor and employee relations. Chapter Two, "Strategic
Training," details the importance placed on training in Comparison to other human resource
management practices. To be effective, training must play a strategic role in supporting the
business.
• Human Resource management is one of several important functions in most companies.
Other functions include accounting and finance, production and operations, research and
development, and marketing. Keep in mind that although human resource management
practice (such as training) can help companies gain a competitive advantage, the company
needs to produce a product or provide a service that customers value.

Training and development: key components of learning

• Learning refers to employees acquiring knowledge, skills, competencies, attitude, or
behaviors. But the focus of training and development is not just on employees learning for its
own sake.
• Today, merely offering training programs is not enough to get support and funding from
executives and to establish the credibility of the training and development function to
managers and employees. Learning needs to demonstrate how it contributes to the company's
competitive advantage through improving employee performance, supporting the business
strategy (such as growing the business), and contributing positively to business outcomes such
as quality, productivity, development of new products, and retaining key employees. From a
company's perspective, what employees learn contributes to the development of intangible
assets such as human capital.
• 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).
• Human Capital may be more valuable than physical capital (equipment or technology) or
financial capital (monetary assets, cash) for providing a company with an advantage over its
competitors, because it is difficult to imitate or purchase and it is unique to the company.
• There are a number of different ways that learning occurs in a company. They are
represented on the outside of the circle in figure 1.1.

• Training refers to a planned effort by a company to facilitate learning of job-related

competencies, knowledge, skills, and behaviors by employees. The goal of training is for
employees to master the knowledge, skills, and behaviors emphasized in training and apply the
to their day-to-day activities. Traditionally, companies have relied on formal training through a
course, program, or "event" to teach employees the knowledge, skills, and behaviors they need
to successfully perform their job. Development is similar to training , except that it tends to be
more future-focused.
• Development refers to training as well as formal education, job experiences, relationship,
relationship, and assessments of personality, skills, and abilities that help employees prepare
for future jobs or positions.
• Formal training and development refers to training and development programs, courses, and
events that are developed and organized by the company. Typically, employees are required to
attend or complete these programs, which can include face-to-face training programs (such as
instructors-led courses) as well as online programs.
• One reason why informal learning may be especially important is that it may lead to the
effective development of easy knowledge, which can be contrasted with explicit knowledge.
• Explicit knowledge refers to knowledge that is well documented, easily articulated, and easily
transferred from person to person. Examples of explicit knowledge include processes,
checklists, flowcharts. formulas, and definitions Explicit knowledge tends to be the primary
focus of formal training and employee development.
• Tacit knowledge refers to personal knowledge based on individual experiences that is difficult
to codify. The characteristics of formal training and development programs, such as the
relatively short duration of classroom or online training and limited opportunities for practice,
may limit the extent to which tacit knowledge can be acquired. Thus, informal learning is
central to the development of tacit knowledge because it involves employee interactions in
personal relationships with peers, colleagues, and experts through which tacit knowledge is
shared, It is important to recognize, however, that informal learning cannot replace formal
training and employee development. Formal training and development are still needed to
prepare employees for their jobs and to help them advance to future positions. Informal
learning complements training by helping employees gain tacit knowledge that formal training
cannot provide.
• knowledge management refers to the process of enhancing company performance by
designing and implementing tools, processes, systems, structures, and cultures to improve the
creation, sharing and use of knowledge. Knowledge management contributes to informal
learning. G4S Secure Solutions provides security solutions around the world. Its employees are
spread across field offices and client locations.
• Most G4S security officers don't have computer access or are restricted by client firewalls, But
security officers need timely information in order to protect clients and property. Seeking and
sharing knowledge can help save lives. As a result, the company developed an Internet and
social networking solution. It provides access to company materials, announcements, policies
and procedures, training manuals, operational and support tools and best practice forums. It
can be accessed from where giving employees the ability to ask questions across the company
as well as within their office location or work team.
• The solution includes Social networking features similar to Facebook Employee can create
profiles that have their skills, interests achievements, prices, and contact information. They can
participate in threaded discussions. Tags can be used to identify similar documents or
discussions on the same topic. Caterpillar Inc. moving toward becoming a continuous learning
organization with the help of knowledge management Thirty years ago, Caterpillar Inc.
manufacturer of construction and mining, and gas turbines, had most of its value in its plant
and equipment. Today. Intangible assets account for the company's value. Caterpillar Inc.
management system, known as Knowledge Network, has thousands of communities of
practice.

Designing Effective Training

• involves having the trainee understand how to manage skill improvement, as well as getting
co-worker and manager support. Step 5 is to develop an evaluation plan. Developing an
evaluation plan includes identifying what types of outcomes training is expected to influence
(for example, learning. behavior, or skills), 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 that is using a cost-benefit analysis to determine the monetary
benefits resulting from training). Step o is to choose the training method based on the learning
objectives and learning environment. This step may include a traditional training method of
face-to-face interaction with a trainer or e-learning using web-based training or mobile
learning. 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 other
learning objectives are obtained.
• The training design process shown in Figure 1.1 is based on principles of Instructional System
Design. Instructional System Design (ISD) refers to a process for designing and developing
training programs. There is not one universally accepted instructional systems development
model. The training design process sometimes is referred to as the ADDIE model because it
includes analysis, design, development, implementation, and valuation."
In Figure 2. Step 1, conducting needs assessment, and Step 2. ensuring employees' readiness
for training, are related to analysis. The next three steps creating a learning environment,
ensuring transfer of training, and developing an evaluation plan- are design issues Step 6.
selecting and using a training method relates to implementation, Step 7. monitoring and
evaluating the program, relates to evaluation. Regardless of the
• Specific ISD approach used all share the following assumptions: Training design is effective
only if it helps employees teach instructional or training goals and objectives. IMI that the
content remains useful
Globalization
• Globalization also means that U.S. companies have to carefully consider the costs and
benefits of moving jobs overseas or using foreign suppliers. The United States lost six million
factory jobs between 1998 and 2010. However, since 2010 the United States has added millions
of factory jobs.
• Offshoring refers to the process of moving jobs from the United States to other locations in
the world. The reasons given for offshoring factories and other jobs often include lower labor
costs and the availability of a skilled workforce with a strong work ethic. However, many
companies are deciding to keep their factory work in the United States rather than send it
offshore. This is occurring for several reasons, including higher product shipping costs, fear of
supply chain disruptions due to natural disasters and political instability, quality concerns, and
customer preference for U.S.-made products.
Also, rising labor costs in some countries, such as China, are becoming more comparable to
those in the United States. Finally, some countries' local standards for safety, health, and
working conditions may be substantially lower than in the United States, resulting in negative
publicity and turning off potential customers.
Example:
Apple is known for introducing revolutionary and functional products such as the iPhone, Mac
Air computers, and the iPad."Apple relies on manufacturing partners in Asia to build its
products. Apple Inc. has been criticized by labor groups who have challenged how its
manufacturing partners in Asia have treated their employees. Apple has taken these criticisms
seriously and is auditing its suppliers and manufacturing facilities to take steps to reduce, if not
eliminate illegal and poor treatment of workers who assemble or provide materials for any of
its products. Apple is especially focused on ensuring that its partners don't hire underage
workers, provide adequate training, and pay fair wage.
Increased Value Placed on Intangible Assets and Human Capital

 Human capital refers the sum of the attributes, life experiences, knowledge,
inventiveness, energy, and enthusiasm that the company's employees invest in their
work." Intellectual capital refers to the codified knowledge that exists in a company.
 Social capital refers to relationships in the company. Customer capital refers to the
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). Intangible assets are equally as valuable as financial
and physical assets, but they are not something that can be touched and they are
nonmonetary.
• Intangible assets have been shown to be responsible for a company's competitive advantage.
Several studies show that investments in training and development lead to increases in financial
performance, productivity, and innovation." The American Society for Training and
Development (ASTD) found that companies that invested the most in training and development
had a shareholder return that was 86 percent higher than companies in the bottom half and 46
percent higher than the market average.* Training and 44 development have a direct influence
on human and social capital because they affect education, work-related know-how and
competence, and work relationships. Training and development can have an indirect influence
on customer and social capital by helping employees better serve customers and by providing
them with the knowledge needed to create patents and intellectual property.
• As mentioned earlier in the chapter, intangible assets such as human capital also contribute
to a company's competitive advantage because they are difficult to duplicate or imitate. For
example, consider companies in the airline industry. Southwest Airlines is consistently
profitable and usually ranks high in on-time arrivals and other indicators Focus on Knowledge
Workers
• One way that a company can increase its intangible assets, specifically human capital, is by
focusing on attracting, developing, and retaining knowledge workers. 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. Employees can not simply
be ordered to perform tasks; they must share knowledge and collaborate on solutions.
Knowledge workers contribute specialized knowledge that their managers may not have, such
as information about customers, and managers depends on these knowledge workers to share
that information.
The value of intangible assets and human capital has three important implications:
(1) a focus on knowledge worker,
(2) employee engagement, and
(3) an increased emphasis on adapting to change and continuous learning.
1. Focus on Knowledge Workers
One way that a company can increase its intangible assets, specifically human capital, is by
focusing on attracting, developing, and retaining knowledge workers. 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. Employees cannot simply
be ordered to perform tasks; they must share knowledge and collaborate on solutions.
Knowledge workers contribute specialized knowledge that their managers may not have, such
as information about customers, and managers depend on these knowledge workers to share
that information. Knowledge workers have many job opportunities. If they choose, they can
leave a company and take their knowledge to a competitor. Knowledge workers are in demand
because of the growth of jobs requiring them.
2. Employee Engagement
• To fully benefit from employee knowledge requires a management style that focuses on
engaging employees. Employee engagement refers to the degree to which employees ae fully
involved in their work and the strength of their commitment to their job and the company. "
Employees who are engaged in their work and committed to their companies those companies
a competitive advantage, including higher productivity, better customer service, and lower
turnover.
• Perhaps the best way to understand engagement is to consider how companies measure
employee engagement. Companies measure employee engagement levels with attitude or
opinion surveys. Although the types of questions asked on these surveys vary from company to
company, research suggests the questions generally measure themes such as pride in the
company, satisfaction with the job, prospects for future growth with the company, and
opportunity to perform challenging work. How do we know if an employee is engaged? An
engaged employee is passionate about their work, is committed to the company and its
mission, and works hard to contribute.
• For example, Bridgepoint Education, a for-profit education services holding company,
recognizes that employee engagement is necessary for success To increase employee
engagement, the company uses events, celebrations, and a social learning platform to facilitate
conversations between employees and their managers. For example, company leaders host
discussions with employees, communicate goals, and give employees a chance to ask questions.
The results of Satellite Healthcare's, a renal care provider, engagement survey showed that
employees want more resources supporting their career development.
3. Change and Continuous Learning
• In addition to acquiring and retaining Knowledge workers, companies need to adapt to
change. Change refers to the adoption of a new idea or behavior by company technological
advances, changes in the workforce or government regulations, globalization, and new
competitors are among the many factors that require companies to change is inevitable in
companies as products, companies, and entire industries expert once shorter life cycles, For
example, every aspect of Capital BlueCrossing is changing due to health-care reform.0 The
company's leadership development curriculum helps prepare leaders at all levels of the
company to deal with these changes. It includes providing each leader with a coach who
reinforces what was learned in the curriculum and tailors it to the individual strengths and
challenges of each learner.
• A changing environment means that all employees must embrace a philosophy of learning. A
learning organization embraces a culture of lifelong learning, enabling all employees to acquire
and share knowledge continually. Improvements in product or service quality do not stop when
formal training is completed.5% Employees need to have the financial, time, and content
resources (such as courses, experiences, and development opportunities) available to increase
their knowledge.
• Learning is less about formal programs and courses and more about being available on an as-
needed basis, driven by employees. The company is focused on fostering continuous learning
related to guest satisfaction and perfect execution of the many dishes on its menu. To do so,
the company is creating interactive learning content that employees access at work. Through
the VideoCafe, employees can upload and share short videos on topics such as customer
greetings and food preparation
Who Provides Training?
• In most companies, training and development activities are provided by trainers, managers,
in-house consultants, and employee experts. However, as the snapshot of training practices
suggests, training and development activities are also outsourced. Outsourcing means that
training and development activities are provided by individuals outside the company. 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, and government organizations.
• Human resource development refers to the integrated use of training and development,
organizational development, and career development to improve individual, group, and
organizational effectiveness. Human resource development professionals might be involved in
job and task analysis, instructional systems design, on-the-job training, and individual
performance improvement. Organizational development professionals might focus on training
as well as team building, conflict avoidance, employee development, and change management.
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. 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. As you can see from these descriptions, training and development
activities can be the responsibility of human resource management, human resource
development, and organizational development professionals or departments. Keep in mind that
regardless of what individual, department, or function is responsible, for training and
development to succeed, employees, managers, training professionals, and top managers all
have to take ownership for them.
Who is in charge of training?
Training and development can be the responsibility of professionals in human resources,
human resource development, or organizational development. Companies may also have entire
functions or departments called human resources, human resource development, talent
management or development, or organizational development that provide training and
development.
Preparing to work in training o To be a successful training professional requires staying up to
date on current research and training practices. The primary professional organizations for
persons interested in training and development include ATD, the Academy of Human Resource
Development (AHRD), the SHRM, the Society for Industrial and Organizational Psychology
(SIOP), the Academy of Management (AOM), and the International Society for Performance
Improvement (ISPI).