Chapter One

Introduction to Employee
Training and Development
 Human Resource Management

Defined as the art of procuring, developing and maintaining

competent workforce to achieve goals of an organization in
an effective and efficient manner.
 Operational Functions
1. Procurement Function – concerned with procuring &
employing people with required knowledge, skill and
aptitude.
2. Development – Increase of skills, knowledge abilities
etc.
3. Motivation & compensation – inspire people to give
best-through incentives & rewards
4. Integration – of goals through teamwork, redressal,
negotiations.
5. Maintenance – protecting & preserving physical and
psychological health of employees
6. Separation
Procurement Development Motivation & Integration Maintenance Separation
Compensation

HR Planning Training Job design Grievance redressal Health & safety Retirement

Job Analysis Executive Work scheduling Discipline Employee Layoff

development welfare

Recruitment Career planning & Motivation Teams & teamwork Social security Outsourcing
development measures

Selection Human Resource Job evaluation Collective bargaining Discharge

development

Placement Performance appraisal Employee

participation &
empowerment

Induction & Compensation Trade unions &

orientation administration associations

Internal Mobility Incentives & benefits. Industrial relations

• Training is expensive, but without training it is more
expensive.
-Jawaharlal Nehru

• “No one learns as much about a subject as one who is

forced to
teach it.”
― Peter F. Drucker
Concept Of Training & Development

TRAINING DEVELOPMENT

Training & Development is a continuous

process in an organization to achieve its
organizational goals by improving the skills
and knowledge of the employees.
What is Training?
Training - a planned effort by a company to
facilitate employees’ learning of job-related
competencies.
• Competencies include knowledge, skills or
behavior critical for successful job performance.
WHY??
To improve the skills and knowledge of the
employees to perform the assigned task.
WHEN??
• New Hires
• Change of Job (Job Rotation, Promotion)
• Change to Job (New Technologies)
• Performance Deficiencies detected
 What is Development?
Development is a process of preparing employees for future
position and improve their personal skills to handle the critical
situations in an organization.

WHY??

To assist employee to sharpen their personal skills

to handle the crucial situations in organization.
Training is imposed
whereas
Development isn’t imposed,
rather the employee/individual
accepts it
spontaneously.
Training improves the technical skills
whereas Development improves the
decision making capacity.
Training is concerned for the current job
performance whereas Development is
concerned for the future job
performance.
Feature Training Development
s
Definiti Training is a Development
on process is a process
related to related to
current job future job
efficiency. efficiency.
Nature Imposed Spontaneous

Concer Current job Future job

n with
Improv Technical skills Decision
ement making
area capacity
Role of Training & Development

Increase in Efficiency

Increase in Morale of Employees

Better Human Relations

Reduced Supervision

Increased Organizational Viability

and Flexibility.
 The Benefits of Training

Benefits the Organization

Leads to improved profitability and/or more
positive attitudes towards profit orientation.
Improves the job knowledge and skills at all
levels of the organization.
Improves the morale of the work force.

Helps people identify with organizational goals.

Helps create a better corporate image.

 The Benefits of Training
Benefits to the Individual
Helps the individual in making better decisions
and effective problem solving.
Aids in encouraging and achieving self-
development and self-confidence.
Helps a person handle stress, tension, frustration
and conflict.
Provides information for improving leadership
knowledge, communication skills, and attitudes.
Increases job satisfaction and recognition.
Satisfies personal needs of the trainee.
 The Benefits of Training
Benefits in Intra and Inter-group Relations
Improves communication
between groups and
individuals.
Improves interpersonal
skills.
Makes organization policies,
rules and regulations viable.
Improves
Builds morale.
cohesiveness in
groups.
Provides agrowth,
good climate for
learning, and
coordination.
Makes the organization a
better place to work.
Designing Effective Training
• Training design process
• A systematic approach for developing training
programs.
• Is based on the principles of Instructional
System Design (ISD).
• Is sometimes referred to as the ADDIE model
because it includes analysis, design,
development, implementation, and evaluation.
• Should be systematic yet flexible enough to
adapt to business needs.
Training Process
 TRAINING NEED ANALYSIS

Needs assessment: Process used to

determine whether training is
necessary Analysis :-
1. Organizational
- Organization require the training (skills) to achieve
short or long term goals OR not?
2. Task Analysis :-
- In which skills we require to provide training to
Perform the task effectively.
3. Personal Analysis :-
- Which employee require training and in which
skills
- Who will participate in the training
 Readiness
Employees Ability
Employees Willingness

Learning Environment
 Learning Objective
 Learning Materials
 Practices
 Theories
 Learning Theories
 Transfer of Training
Transfer of training refers to trainees
effectively and continually applying what
they learned in training to their jobs
 Training Method

On-the-Job Methods Off-the-Job Methods

- Job Rotation - Vestibule Training

- Coaching - Role Playing
- Job Instruction - Lecture Methods
- Conference or Disc
- Programmed Instru
 Training Evaluation

•Reactions
•Learning
•Behavior – Transfer of
Training
•Results or Return on
Investment (ROI)
 Intangible Assets
1. human capital
2. customer capital
3. social capital
4. intellectual capital

Can not be easily imitated or

duplicated
Snapshot of Training Practices

•Key trends in learning initiative

investments:
• Direct expenditures, as a
percentage of payroll and learning
hours, have remained stable over
the last several years.
• There is an increased demand for
specialized learning that includes
professional or industry-specific
content.
• The use of technology-based
Snapshot of Training Practices

• Self-paced online learning is the

most frequently used type of
technology-based learning.
• Technology-based learning has
helped improve learning efficiency,
and has resulted in a larger
employee–learning staff member
ratio.
• The percentage of services
distributed by external providers
dropped from 29 percent in 2011 to
25 percent in 2018.
Snapshot of Training Practices

• In most companies training and

development activities are
provided by trainers, managers,
in-house consultants, and
employee experts.
• They can also be outsourced.
• Training and development can be
the responsibility of professionals
in human resources, human
resource development, or
organizational development.
 Chapter Two:
Strategic Training
 2 - 34

Chapter Objectives
1. Discuss how business strategy influences the type and amount of
training in a company.
2. Explain how the role of training has changed.
3. Describe how changes in work roles influence training.
4. Discuss how a company’s staffing and human resource planning
strategies influence training.
5. Explain the training needs created internal growth, external
growth, and disinvestment business strategies.
6. Discuss the advantages and disadvantages of organizing the
training function according to the faculty, customer, matrix model.
 2 - 35

What is a Business Strategy?

• A plan that integrates the company’s goals,
policies, and actions.
• The strategy influences how the company
uses:
– physical capital (plants, technology, and equipment)
– financial capital (assets and cash reserves)
– human capital (employees)
• The business strategy helps direct the
company’s activities to reach specific goals.
 Decisions to Compete to Reach Its
Goals

• Where to compete?
– In what markets will we compete?
• How to compete?
– On what differentiating characteristic will we
compete?
– Cost? Quality? Reliability? Delivery?
Innovativeness?
• With what will we compete?
– What resources will allow us to beat the
competition?
– How will we acquire, develop, and deploy those
resources?
 2 - 37

Strategy impacts on determining

• The amount of training devoted to job

skills.
• The extent to which training is
customized.
• Whether training is restricted or open to
all.
• Whether training is:
– planned and systematically administered,
provided only when problems occur, or
spontaneously as a reaction to what
competitors are doing.
• The importance placed on training
compared to other human resource
Evolution of Training's Role
 Evolution of Training's Role
• Learning – the acquisition of knowledge by individual employees or
groups of employees who are willing to apply that knowledge in
their jobs in making decisions and accomplishing tasks for the
company.
• Learning organization is a company that has an enhanced capacity
to learn, adapt, and change.

• Knowledge – what individuals or teams of employees know as well

as company rules, processes, tools, and routines.
– It is either tacit knowledge or explicit knowledge.
The Strategic Training and Development Process
 1. Business Strategy
• Mission – the company's reason for existing.
• Vision – the picture of the future that the company wants to
achieve.
• Values – what the company stands for.
• SWOT analysis – an analysis of the company's operating
environment to identify opportunities and threats as well as an
internal analysis of the company's strengths and weaknesses.
• The company has to consider its competition.
2. Strategic Training and Development Initiatives
 3. Training and Development Activities

– use of new technology in training

– developing new or expanded course offerings
– reducing development time
 4. Metrics that show value of Training
• Metrics are used to identify:
– trainees' satisfaction with the training program.
– whether the trainees' knowledge, skill, ability, or attitudes
changed as a result of program participation.
– whether the program resulted in business-related
outcomes for the company.
• evaluate customer service

• employee satisfaction or engagement

• employee turnover

• number of product defects

• time spent in product development

 Organizational Characteristics That
Influence Training
Role of
Global Extent of
Employees &
Presence Unionization
Managers

Top Staff
Business
Management involvement in
Conditions
Support T&D

Integration of
HRM Practices
Business Units

2 - 46
Implications of Staffing Strategy for Training
 Training Needs in Different Strategies
Strategy Emphasis How Achieved Key Issues Training Implications
Concentration 1) Increase 1) Improve 1) Skill 1) Team building
market share quality currency 2) Cross-training
2) Reduce 2) Improve 2) Developme 3) Specialized
operating costs productivity nt of programs
3) Create market 3) Customize existing 4) Interpersonal skill
niche products work force training
5) On-the-job training

Internal Growth 1) Market 1) Add 1) Create new 1) Support high-

development distribution jobs quality product
2) Product channels 2) Create new value
development 2) Expand global tasks 2) Cultural training
3) Innovation markets 3) Innovation 3) Conflict negotiation
4) Joint ventures 3) Create new skills
products 4) Manager training in
4) Joint feedback and
ownership communication
5) Technical
competence in jobs

2 - 48
 Training Needs in Different Strategies
Strategy Emphasis How Achieved Key Issues Training Implications
1) External 1) Horizontal 1) Acquire firms 1) Integration 1) Determining
Growth integration for new market 2) Redundan capabilities of
(Acquisitio 2) Vertical access cy acquired
n) integration 2) Acquire firms 3) Restructur employees
3) Concentric to supply or ing 2) Integrating training
diversification buy products systems
3) Acquire any 3) Team building
firm

1) Disinvestm 1) Retrenchment 1) Reduce costs 1) Efficiency 1) Motivation

ent 2) Turnaround 2) Reduce assets 2) Goal setting
3) Divestiture 3) Generate 3) Stress
4) Liquidation revenue management
4) Redefine goals 4) Time management
5) Sell off all 5) Leadership training
assets 6) Outplacement
assistance
7) Job-search skills
training

2 - 49
 Models of Organizing the Training Department

Faculty Model
Customer Model

Matrix Model

Corporate University
Model
Business Embedded
Model
2 - 50
 1. The Faculty Model

D irector of Training

S afety Q uality Technology Leadership S ales

Training Training and D evelopm ent Training
C om puter
S ystem s

Training Specialty Areas

2 - 51
 2. The Customer Model

D irec tor of Train in g

In form ation M ark etin g P rod u c tion F in an c e

S ys tem s an d
O p eration s

Business Functions

2 - 52
 3. The Matrix Model
D irector of Train in g

S ales Q u ality Tech n olog y S afety

Training Train in g Train in g an d Train in g
Specialty C om p u ter
Areas S ystem s

Production
Marketin
and
g
Operations

Business Functions

2 - 53
 4. The Corporate University Model

Historical Training Leadership Development Programs Training

Problems Advantages
Excess Costs Dissemination of
Best Practices
Poor Delivery and
Focus Product Operations Sales and Human
Development Marketing Resources

Inconsistent Use Align Training

of Common with Business
Training Practices Needs
Best Training Integrate
Practices Not Training
Shared Initiatives
Training Not Effectively Utilize
Integrated or New Training
Coordinated Methods and
New Employee Programs Technology
2 - 54
- transitioned away from teaching courses
with a lecture format and is moving
toward fewer large group sessions.
- interactive learning in classes of twenty-
five to thirty-five students.
- FGD
- E-learning
- classroom instruction and simulations
- Virtual classrooms
- Simulated kitchen and drive-through
window
 Are Corporate Universities Effective
• Top five organizational goals of corporate universities
are-
1. improve customer service and retention
2. improve productivity
3. reduce costs
4. retain talented employees
5. increase revenue
 Outsourcing Training

Outsourcing – the use of an outside company that

takes complete responsibility and control of some
training or development activities or that takes overall
or most of a company's training including
administration, design, delivery, and development.
 Reasons of Outsourcing
• Why companies outsource training:
– Cost savings.
– Time savings that allow a company to focus on business
strategy.
– Improvements in compliance and accuracy in training
mandated to comply with federal, state, or local rules.
– The lack of capability within the company to meet learning
demands.
– The desire to access best training practices.
 Reasons not to Outsource

• Two reasons companies do not outsource their training are:

– The inability of outsourcing providers to meet company needs.

– Companies' desire to maintain control over all aspects of training

and development, especially delivery and learning content.

Questions to Ask When Considering Outsourcing