What Is Training and Development?

1. What Is Training and Development? Training: An organization’s planned effort to facilitate employees’ learning of job-related competencies. “A method of enhancing human performance.” -Silberman Development: Formal education, job experiences, relationships and assessments of personality and abilities that help employees prepare for the future. Traditional training: Teach employees skills needed for current jobs. Low priority = low budget. U.S. business training dollars: 1995: $51 billion (Bureau of Labor Statistics). 2006: $109 billion (American Society for Training and Development). . 1 ©SHRM 2009

2. Training as a Competitive Advantage Training becomes a competitive advantage when: It is linked to business strategy and organization goals. It focuses on the organization’s future. Employees are trained in the knowledge, skills and abilities required to achieve that future. It moves from basic skills to learning, creating and sharing knowledge. 2 ©SHRM 2009

3. Strategic Training Improves performance toward goals. Focuses on what is needed and when it is needed. Formal training enhanced by informal learning. Learning supported by the organization. Knowledge transfer: Explicit knowledge. Tacit knowledge. 3 ©SHRM 2009

4. Strategic Training and Development Process Business Strategy Strategic Training and Development Initiatives Training and Development Activities Metrics that Show Value of Training • Mission. • Values. • Goals. • Diversify learning portfolio. • Improve customer service. • Accelerate pace of employee learning. • Capture and share knowledge. • Use web-based training. • Make development planning mandatory. • Develop web sites for knowledge sharing. • Increase customer service training. • Learning. • Performance improvement. • Reduced customer complaints. • Reduced turnover. • Employee satisfaction. 4

5. Training and Organization Success Strategic Planning Evaluation Assessment Design Implementation 5 Development

6. The Training Costs Part 1 Fixed costs: Those costs that remain the same no matter how many individuals participate in the training. Instructor’s salary. Marketing/information distribution. Variable costs: Expenses that will vary depending on the number of participants in the training program. Printed hand-outs. Lunch for participants. 6 ©SHRM 2009

7. Training Costs Part 2 Direct costs All of the expenses involved in putting together the training program: Course development or purchase. Printing. Equipment rental. Costs of needs assessment. Evaluation of training. Indirect costs: Less obvious expenses, not directly related to the training: Overhead. Administrative and clerical salaries. Employee fringe benefits (25 percent of salary). Productivity loss. 7 ©SHRM 2009

8. Training and Development Process 1. Needs assessment and analysis. 2. Training program design. 3. Training program development. 4. Implementation and delivery of training. 5. Training evaluation. 8 ©SHRM 2009

9. Return on Investment of Training: Benefit-Cost Ratio Training appropriate for ROI analysis: Clearly identified outcomes. Not one-time events. Broad-based and highly visible in the organization. Strategically focused. Training effects can be isolated. Benefit-Cost Ratio: Aids in decision-making process. Consistent analysis across programs. Information difficult to obtain. Program Benefits Benefit-Cost Ratio = ---------------------------- Program Costs 9 ©SHRM 2008

10. Determining Benefits Measuring training benefits: Benefits must consider training objectives. Literature summaries of benefits of specific training. Assessment of pilot training programs. Observations of successful trainees. Estimates from trainees and managers. 10 ©SHRM 2009

11. Needs Assessment & Analysis Needs assessment: The process used to determine if training is necessary. This is the first step in the instructional design model. Goals of needs assessment: Determine whether a training need exists. Identify who it exists for. Identify what tasks need to be taught. Needs analysis (aka, gap analysis): Analysis of the data collected during the needs assessment. A needs analysis focuses on the differences between the way work should be done and the way work is done. Expected performance – What is the ideal? What should be happening? Actual performance – What is actually happening now? 11 ©SHRM 2009

12. Overview of Needs Assessment 1. Gather data to identify needs. 2. Determine needs that can be met by training intervention. 3. Propose solutions. 4. Calculate potential cost of training interventions. 5. Choose the training. 6. Implement the training.

13. Pre-Assessment Activities Do we need a needs assessment? Training may be the wrong solution. We may conduct the wrong training. Unnecessary money may be spent on training. If so, what’s the triggering event? Lack of basic skills. Poor performance. New legislation. New technology. New products. New jobs. Change in performance standards. 13 ©SHRM 2009

14. Needs Assessment Tools Performance tests. Questionnaires and surveys. Observations. Focus groups. Interviews. Work samples. Industry standards. Work records. Key employee consultation. Company reports and print media analysis. Checklists. ©SHRM 2009

15. Needs Assessment Process Organizational analysis: Is training appropriate? Does training support the organization’s strategic direction? Person analysis: Does employee performance indicate a need for training? Which employees need training? Task analysis or competency model: What work activities are required to complete a task? What knowledge, skills and abilities are necessary to successfully perform the task? 15 ©SHRM 2009

16. Training Goals & Objectives Goal: A concise statement of the purpose or intent of the training. Who is the training for? What is the training about? Why is the training being conducted? Objective: What participants will be able to do after the training. Provides a focus for training design. Tells participants what they should know at the end of the program. Assists in knowledge and skills transfer. Establishes parameters for evaluation. A training objective has three components: Performance outcomes: A statement about what the employee is expected to do. This is a task or an observable action. Criterion: A statement about the level of performance that is acceptable. Conditions of performance: A statement about the conditions under which the trainee is expected to perform. 16 ©SHRM 2009

17. Training Program Design Program design is the organization and coordination of training. For learning to occur, training programs require: Meaningful material. Clear objectives. Opportunities for practice. Feedback. Effective program design includes: Course parameters. Entry skills and behaviors. Course objectives. Program objective. Learning objectives. Assessment of learning objectives. Detailed lesson plan. Structure and sequence of training. Evaluation. 17 ©SHRM 2009

18. The Learning Process for Instruction To learn effectively, what do employees need? Employees need: To know why they should learn. Meaningful training content. Opportunities to practice. To commit training content to memory. Feedback. Opportunity for observation, experience and interaction with others. Training to be properly coordinated and arranged. 18 ©SHRM 2009

19. Training Methods Traditional training: Presentation methods. Hands-on methods. Group building methods. Technology-based training: Synchronous learning. Asynchronous learning. Blended learning. • The training program must be: • Developed or purchased. • Available when needed. • Within budget. • Appropriate to trainees’ needs and abilities. • Liked by trainees. • Such that learning occurs. • Such that learning is transferred to the workplace 19 ©SHRM 2009

20. Training Methods: Pros and Cons 20 ©SHRM 2009

21. Implementing Training Time and location Company meeting room or off-site? Time of day/multiple days. Organization deadlines. Who will conduct the training program? In-house staff. Subject matter expert. Outside consultant. Other logistics (“butts, bagels, books”) Administrative support Room Training equipment Materials and handouts Food 21 ©SHRM 2009

22. Training Effectiveness: Evaluate Student Learning Training effectiveness: Benefits to the organization and trainees. Evaluation Process Develop measurable outcomes and plan for transfer of training. Develop outcome measures. Choose an evaluation strategy. Plan and execute the evaluation. Formative evaluation: Evaluation that takes place during training May result in content change. May involve pilot test. May adjust to meet needs of the trainees. Summative evaluation: Evaluation conducted at the end of training. Used to determine the extent to which trainees have changed as a result of the training program. Used to measure return on investment. 22 ©SHRM 2009

23. Training Transfer • Training transferis effectively and continually applying on the job what the trainee learned during training. • Goals of successful training transfer: • Trainees generalizeskillsto the work setting. • Trainees maintainskills in the work setting. • Training transfer is measured after participation in a training program.